Middle District of Tennessee
Press releases recorded for this federal judicial district.
Two Additional Members and Associates of Clarksville Tennessee Mongols Motorcycle Gang Charged with Crimes Related to Racketeering Conspiracy, Murder, Kidnapping and Drug TraffickingRead the Press Release
A 75-count, third-superseding indictment was returned by a federal grand jury in Nashville, Tennessee on June 29 and unsealed Friday, charging 21 members and associates of the Clarksville, Tennessee chapter of the Mongols Motorcycle Gang with various federal crimes, including racketeering conspiracy, murder in aid of racketeering, attempted murder, kidnapping, robbery, large-scale drug trafficking, and other crimes, announced U.S. Attorney Don Cochran of the Middle District of Tennessee and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
On January 18, 2018, a 54-count superseding indictment charged 15 members and associates of the Clarksville Mongols with racketeering conspiracy, murder, drug trafficking and other related crimes. On March 7, 2018, a 64-count second-superseding indictment charged four additional defendants with the kidnapping and murder of Stephen Cole, an estranged former member of the Mongols. The indictments detail allegations of violent, criminal activity and drug trafficking in and around the Clarksville, Tennessee area beginning in or about March 2015 and continuing until the return of the indictments.
The latest indictment charges two additional associates of the Clarksville Mongols with drug trafficking conspiracy, money laundering, interstate travel in aid of racketeering, tampering with the grand jury investigation by removing and concealing evidence, false statements to law enforcement, and accessory after the fact for the kidnapping and murder of Stephen Cole. The two additional defendants are:
Janie Lee, 22, of Owensboro, Kentucky, and Jessie Marie Decker, 33, of Trenton, Kentucky. Lee will have her initial court appearance this afternoon before U.S. Magistrate Judge H. Brent Brennenstuhl in the Western District of Kentucky and Decker will have her initial court appearance this afternoon before U.S. Magistrate Judge Alistair E. Newbern in the Middle District of Tennessee.
This indictment charges Lee with conspiracy to distribute large-scale quantities of methamphetamine, distribution and possession with intent to distribute methamphetamine, interstate travel in aid of racketeering, and money laundering.
Decker is charged along with previously-indicted defendant William Nelper a/k/a “Flip,” with conspiracy to distribute and possession with intent to distribute marijuana, tampering with the grand jury investigation, and use of a firearm in relation to a drug trafficking crime. Decker is separately charged with making false statements to law enforcement relating to the kidnapping and murder of Cole and as an accessory after the fact to the kidnapping.
The third-superseding indictment also brings additional charges against other previously- indicted defendants. Robert Humiston a/k/a “Bric,” is charged with possession of a short-barreled rifle in violation of the National Firearms Act (NFA) and with failure to register the firearm as required by the NFA. Christopher Wilson is charged with two counts of being a felon in possession of a firearm, drug trafficking conspiracy and possession with intent to distribute several different controlled substances, possession with intent to distribute methamphetamine, and use of a firearm in relation to a drug trafficking crime.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Clarksville Police Department; the Tennessee Bureau of Investigation; and the Kentucky State Police. Assistant U.S. Attorney Katy Risinger of the Middle District of Tennessee and Trial Attorney Robert Tully of the DOJ Organized Crime and Gang Section are prosecuting the case.
An indictment is merely an accusation and all defendants are presumed innocent unless and until proven guilty in a court of law.
Former CEO of Tennessee-Based Telemarketing Company Sentenced to Federal PrisonRead the Press Release
A Brentwood, Tennessee man was sentenced today in U.S. District Court to 66 months in prison for his criminal conduct in marketing and misrepresenting health insurance plans, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran of the Middle District of Tennessee.
Timothy Thomas, 55, was also ordered to forfeit $1.5 million dollars and to pay more than $2.5 million in restitution to the victims of the fraud scheme. In March 2018, Timothy Thomas pleaded guilty to committing mail fraud. He was initially indicted in October 2014 for fraudulently marketing limited benefit health plans as major medical health insurance to consumers. Thomas also pleaded guilty to criminal contempt, charges that resulted from a lawsuit filed by the Federal Trade Commission (FTC) and the State of Tennessee in August 2010, wherein a federal judge in the Middle District of Tennessee issued an order freezing Thomas’s assets and placing his company into receivership. Immediately after being informed of the court’s order, Thomas violated it by withdrawing more than $100,000 from a brokerage account and convincing a friend to deposit checks totaling $528,647, constituting proceeds of the scheme, into the friend’s bank account.
According to admissions made as part of his guilty plea, Thomas operated and controlled United Benefits of America (UBA) LLC, which was also known at as United States Benefits (USB) and Health Care America. From at least 2007 to 2010, Thomas hired salespeople to sell over the phone so-called “association memberships” created by third-party companies such as International Association of Benefits and Consumer Driven Benefits of America. These memberships included bundled benefits, such as limited benefit health plans, prescription drug discount cards, accidental death and dismemberment benefits, and lifestyle benefits, such as rental car discounts. Thomas targeted his sales to customers who had been denied traditional health insurance because of preexisting conditions. The sales script used by Thomas attempted to portray the memberships as equal in quality to traditional health insurance, omitting the fact that limited benefit health plans left customers with the vast majority of the financial risk.
Thomas’s 66-month sentence consists of 36 months for mail fraud, to be followed by 30 months for criminal contempt.
“Timothy Thomas exploited innocent consumers who were simply looking for decent health insurance,” said Acting Assistant Attorney General Cronan. “Rather than honestly describing the insurance products his company was selling, Thomas had his salespeople misrepresent the products to thousands of unsuspecting people over the phone. The sentence of imprisonment and order of restitution in this case will hopefully provide some consolation to all those who were victimized by Thomas’ scheme.”
“Tim Thomas used misleading, high-pressure sales tactics to dupe thousands of victims into buying a product that they mistakenly believed was just as good as major medical health insurance,” said U.S. Attorney Cochran. “Then, when a federal court stepped in to shut Thomas’s company down and freeze his assets, Thomas violated that court order by depositing hundreds of thousands of dollars into a friend’s bank account. These crimes implicate not only the public’s trust but the integrity of the judicial system, and the sentence imposed today reflects their seriousness.”
Thomas’s ex-wife, Kennan Dozier Thomas, 60, of Franklin, Tennessee, was also charged with criminal contempt, arising from the violation of the asset freeze. She pleaded guilty in September 2016 and was sentenced last week to time served and placed on two years of supervised release, the first 90 days of which will be spent in a halfway house.
The case was investigated by the FBI, the U.S. Postal Inspection Service, the Department of Labor’s Office of Inspector General and the Department of Labor’s Employee Benefits Security Administration. The FTC, Tennessee Attorney General’s Office, and Tennessee Division of Insurance provided substantial assistance. Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee prosecuted the case.
Former CEO of Tennessee-Based Telemarketing Company Sentenced to Federal PrisonRead the Press Release
Timothy Thomas, 55, of Brentwood, Tennessee, was sentenced today in U.S. District Court to 66 months in prison for his criminal conduct in marketing and misrepresenting health insurance plans, announced U.S. Attorney Don Cochran of the Middle District of Tennessee and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division. Thomas was also ordered to forfeit $1.5 million dollars and to pay more than $2.5 million in restitution to the victims of the fraud scheme.
U.S. Attorney Don Cochran said, “Tim Thomas used misleading, high-pressure sales tactics to dupe thousands of victims into buying a product that they mistakenly believed was just as good as major medical health insurance. Then, when a federal court stepped in to shut Thomas’s company down and freeze his assets, Thomas violated that court order by depositing hundreds of thousands of dollars into a friend’s bank account. These crimes implicate not only the public’s trust but the integrity of the judicial system, and the sentence imposed today reflects their seriousness.”
In March 2018, Timothy Thomas pleaded guilty to committing mail fraud. He was initially indicted in October 2014 for fraudulently marketing limited benefit health plans as major medical health insurance to consumers. Thomas also pleaded guilty to criminal contempt, charges that resulted from a lawsuit filed by the Federal Trade Commission (FTC) and the State of Tennessee in August 2010, wherein a federal judge in the Middle District of Tennessee issued an order freezing Thomas’s assets and placing his company into receivership. Immediately after being informed of the court’s order, Thomas violated it by withdrawing more than $100,000 from a brokerage account and convincing a friend to deposit checks totaling $528,647, constituting proceeds of the scheme, into the friend’s bank account.
Thomas operated and controlled United Benefits of America (UBA) LLC, which was also known at as United States Benefits (USB) and Health Care America. From at least 2007 to 2010, Thomas hired salespeople to sell over the phone so-called “association memberships” created by third-party companies such as International Association of Benefits and Consumer Driven Benefits of America. These memberships included bundled benefits, such as limited benefit health plans, prescription drug discount cards, accidental death and dismemberment benefits, and lifestyle benefits, such as rental car discounts. Thomas targeted his sales to customers who had been denied traditional health insurance because of preexisting conditions. The sales script used by Thomas attempted to portray the memberships as equal in quality to traditional health insurance, omitting the fact that limited benefit health plans left customers with the vast majority of the financial risk.
“Timothy Thomas exploited innocent consumers who were simply looking for decent health insurance,” said Acting Assistant Attorney General Cronan. “Rather than honestly describing the insurance products his company was selling, Thomas had his salespeople misrepresent the products to thousands of unsuspecting people over the phone. The sentence of imprisonment and order of restitution in this case will hopefully provide some consolation to all those who were victimized by Thomas’ scheme.”
At sentencing today, Judge David M. Lawson observed that Thomas “sought to profit from misrepresentations to people in a particularly vulnerable state,” noting that this sentence “sends the message that this type of conduct will not be tolerated. Thomas’s 66-month sentence consists of 36 months for mail fraud, to be followed by 30 months for criminal contempt.
Thomas’s ex-wife, Kennan Dozier Thomas, 60, of Franklin, Tennessee, was also charged with criminal contempt, arising from the violation of the asset freeze. She pleaded guilty in September, 2016 and was sentenced last week to time served and placed on 2 years of supervised release, the first 90 days of which will be spent in a half-way house.
The case was investigated by the FBI, the U.S. Postal Inspection Service, the Department of Labor’s Office of Inspector General and the Department of Labor’s Employee Benefits Security Administration. The FTC, Tennessee Attorney General’s Office, and Tennessee Division of Insurance provided substantial assistance. Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee and Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section prosecuted the case.
Three Facing Federal Firearms Charges in Music City Pawn RobberyRead the Press Release
Three Nashville men are facing federal firearms charges relating to the armed robbery of Music City Pawn on Tuesday, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
A criminal complaint obtained yesterday afternoon charged James Horton, 24, Hakeem Mannie, 29, and Herbert Marsh, 28, all of Nashville, with robbery affecting commerce and using and carrying a firearm during and in relation to a crime of violence. Mannie and Marsh are also charged with being convicted felons in possession of firearms.
“This is yet another example of our commitment to act swiftly to reduce violent crime in middle Tennessee,” said U.S. Attorney Cochran. “As we continue to remind the public, the U.S. Attorney’s Office and our law enforcement partners are serious about removing violent offenders from our communities. With these individuals, 23 violent offenders have been charged and taken off the streets in June and this follows similar patterns in preceding months. Lengthy prison sentences will follow upon conviction and there is no parole in the federal system.”
The complaint alleges that on June 26, 2018, the trio robbed Music City Pawn on Nolensville Pike, taking 14 firearms and more than $8,000 cash. The trio entered the store wearing masks and gloves and one was armed with a handgun equipped with an extended magazine and a weapon-mounted light. Two employees were then ordered to the ground and bound with cable and one employee was dragged to the rear of the store and ordered to open the safe. After taking the firearms and cash, the assailants fled the store in a U-Haul van.
According to the complaint, Metropolitan Nashville police officers stopped a BMW at the intersection of 24th Ave. N. and Rosa Parks Blvd. for a traffic violation. Officers identified James Horton as the driver and Mannie and Marsh as two of the three passengers. During the subsequent investigation, five stolen firearms were recovered from the vehicle, four of which were taken during the robbery at Music City Pawn. The complaint also describes video surveillance and witness statements linking the trio to the robbery as well as the recovery of the U-Haul van at Marsh’s sister’s house, which was used during the getaway.
Hakeem Mannie was found to have six prior felony convictions for forgery and Herbert Marsh has three prior felony convictions for forgery.
If convicted, all defendants face up to 20 years in prison on the robbery charge, with an additional mandatory minimum consecutive sentence of five years on the charge of using and carrying a firearm during a crime of violence. Mannie and Marsh also face up to 10 years in prison for being a convicted felon in possession of firearms.
U.S. Attorney Cochran commended the work of the Metro Nashville Police Department and the Bureau of Alcohol Tobacco, Firearms & Explosives for the swift apprehension of those responsible and the subsequent investigation of this case. Assistant U.S. Attorneys Brooke Schiferle and Phillip Wehby are prosecuting the case.
A criminal complaint is merely an accusation and is not evidence of guilt. All defendant are presumed innocent until proven guilty in a court of law.
Nashville Man Convicted of Human Trafficking CrimesRead the Press Release
Brittan Ezekiel Kettles, aka “Low Low,” 26, of Nashville, Tennessee, was convicted yesterday by a federal jury of conspiracy to sex traffic a person under the age of 14 and sex trafficking a person under the age of 14, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
According to evidence and testimony at trial, on or about June 15, 2016, Stormy Whittemore met Kettles after he contacted her through Instagram, a photo and video-sharing social networking site. Within approximately 24 hours of meeting with him, Kettles disclosed information to her regarding his prostitution enterprise. Using promises of a money, cars, mansions, and other materialistic things, Kettles recruited Whittemore into working for him as a prostitute. Shortly thereafter, Whittemore began prostituting for Kettles in the Nashville area. At the time, Whittemore was 18 years old, and prior to meeting Kettles, she had never prostituted herself before.
To facilitate Whittemore’s prostitution activities, Kettles rented a room at a motel by the Nashville International Airport from June 16, 2016, through June 19, 2016. Kettles also utilized the website www.Backpage.com to advertise her services. The advertisements on Backpage.com sometimes displayed photographs of other female individuals and sometimes of Whittemore. When a male individual, commonly referred to as a “john” responded to the advertisement, Kettles would arrange the sexual encounter between the john and Whittemore. Following the encounter, Whittemore provided the money she made to the defendant, typically between $150 and $200 for each encounter.
Between June 16 and June 19, 2016, during the same time that Kettles was prostituting Whittemore in Nashville, he met a 13-year old friend of Whittemore’s. Shortly after meeting the 13-year-old, Kettles, through Whittemore, recruited and enticed her to engage in commercial sex acts: i.e., prostitute herself in exchange for money. Over the course of the next couple of days, the 13-year-old prostituted herself on behalf of Ketttles and Whittemore. Following each sexual encounter, she provided the money she earned to Whittemore and Kettles, usually by handing the money directly to Whittemore, who would then give the money to Kettles.
During the course of the weekend, Kettles purchased clothing, food, and beverages for Whittemore and the 13-year-old female and also paid for them to receive nail services at a salon, using the money that they had earned to pay for these items and services. At the end of the weekend, Whittemore and Kettles dropped the 13-year-old off at her residence. She subsequently contacted Whittemore and Kettles via text message, asking for $200 of the $800 that she had earned for them based on the prostitution she had performed. They agreed to give her $60, but in fact only left $15 in the mailbox at her house.
Shortly after all of the above, the 13-year-old’s mother contacted a non-governmental organization and reported that her daughter had been a victim of human trafficking. The non-governmental organization reported the information to the Metropolitan Nashville Police Department, which then conducted an investigation into the allegations. The 13-year-old subsequently identified Kettles and Whittemore as the individuals who trafficked her between June 16 and June 19, 2016.
Kettles faces a mandatory minimum of at least 15 years, up to life in prison when he is sentenced on October 15, 2018. Whittemore pleaded guilty in August 2017 and is awaiting sentencing.
This case was investigated by the FBI and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Katy Risinger and Siji Moore prosecuted the case.
Five Tennessee Health Care Executives Charged in $2.5 Million Dollar Kickback SchemeRead the Press Release
An 11-count indictment was unsealed yesterday, charging five Tennessee health care executives with one count of conspiracy to defraud the United States and violate the Anti-Kickback Statute and several substantive counts of violating the Anti-Kickback Statute, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Those charged are:
Brenda Montgomery, 70, of Camden, Tenn.;
Beau Jones, 50, of Loudon, Tenn.;
Sarah Dacus, 36; Greg Lawson, 42; and Josh Wiley, 35, all of Knoxville, Tenn.
The charges stem from a multi-level kickback scheme led and financed by Brenda Montgomery and the durable medical equipment (DME) company she owned and operated, CCC Medical, Inc. (CCC). Jones, Lawson, Wiley, and Dacus were arrested yesterday as part of a national healthcare fraud takedown. Montgomery, who is currently facing other federal charges connected to a previous $4.6 million dollar Medicare kickback scheme, must appear in the Middle District of Tennessee to be arraigned on the new case.
According to the indictment, Beau Jones, in his role as a sales representative for a large national DME manufacturer, recruited individuals in a position to make referrals of Medicare DME orders to CCC. The indictment alleges that in exchange for the referrals, he received kickbacks in excess of $400,000.
The indictment further alleges that Greg Lawson and Josh Wiley, sales representatives of the same company that employed Jones, were among the individuals recruited by Jones. The indictment alleges that Lawson received over $250,000 in kickbacks and Wiley received over $93,000 in kickbacks for DME referrals and orders to CCC.
According to other allegations in the indictment, Lawson recruited Sarah Dacus, a sales representative of a large international medical device manufacturer, and Dacus received kickbacks and bribes in excess of $52,000 for sending DME orders and referrals to CCC.
Finally, the indictment alleges that, from in or around January 2012 until in or around December 2017, Montgomery paid Jones, Lawson, Wiley, Dacus and other co-conspirators over $1 million in illegal kickbacks; billed Medicare for over $2.5 million in tainted DME claims; and collected in excess of $1.2 million in reimbursement for those claims.
The defendants face up to five years in federal prison on each charge as well as substantial monetary fines and penalties.
This case was investigated by the U.S. Department of Health & Human Services - Office of Inspector General; the Defense Criminal Investigative Service; and the Tennessee Bureau of Investigation - Medicaid Fraud Control Unit. Assistant United States Attorney Ryan R. Raybould of the Middle District of Tennessee and Trial Attorney Anthony Burba from the DOJ’s Fraud Section are prosecuting the case on behalf of the United States.
An indictment is merely an accusation and is not evidence of guilt. All defendants are presumed innocent unless and until proven guilty in a court of law.
This enforcement action is part of a nationwide health care fraud initiative of the Department of Justice being announced today by Attorney General Jeff Sessions.
Five Nashville-Area Men Indicted in Conspiracy to Fraudulently Obtain OxycodoneRead the Press Release
A federal grand jury in Nashville, Tennessee, returned a 12-count indictment on June 13, 2018, charging five individuals with various offenses, including wire fraud and aggravated identity theft, relating to a conspiracy to fraudulently obtain and distribute oxycodone, in the middle Tennessee area, announced U.S. Attorney Don Cochran, for the Middle District of Tennessee.
The indictment charges the following individuals with conspiring to fraudulently use a DEA registration number issued to another person to obtain oxycodone between January 2017 and September 2017:
Simbarashe Kanjanda, aka Simba, 37, of Hermitage, Tennessee;
William Afari, 24, of Antioch, Tennessee;
Robert Pride, Jr., 31, of Nashville, Tennessee;
AbdulNasar Nour, 24, of Antioch, Tennessee; and
Kudakawashe Mandishona, aka Kuda, 23, of Antioch, Tennessee.
According to the indictment, the five individuals were part of a conspiracy to steal the DEA registration numbers of area physicians, as well as the personal identifying information of patients, from medical and dental clinics in the middle Tennessee area. The indictment alleges the DEA registration numbers were then used to create fraudulent prescriptions for oxycodone in the names of patients whose identities had been stolen. The fraudulent prescriptions were then presented to area pharmacies by co-conspirators, who obtained the oxycodone and then conspired to possess and distribute the oxycodone in middle Tennessee.
The indictment also alleges that the defendants sent text messages to other co-conspirators to facilitate and request fraudulent prescriptions.
If convicted of the drug conspiracy, the defendants face a maximum sentence of 20 years in prison. The defendants face up an additional mandatory consecutive sentence of at least 2 years in prison for the aggravated identity theft offenses.
This case was investigated by the Drug Enforcement Administration; the Tennessee Office of Inspector General; and the Smyrna Police Department. The case is being prosecuted by Assistant U.S. Attorney Ahmed A. Safeeullah.
An indictment is merely an accusation and is not evidence of guilt. All defendants are presumed innocent until proven guilty in a court of law.
This enforcement action is part of a nationwide health care fraud initiative of the Department of Justice being announced today by Attorney General Jeff Sessions.
Recent Incidents Involving AK-47 Style Weapons Result in Federal Firearms Charges Against Two Mid-State MenRead the Press Release
Two mid-state men are facing federal firearms charges after recent incidents involving the use of assault rifles, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
“Some people just aren’t getting the message when it comes to violent gun crime,” said U.S. Attorney Cochran. “The U.S. Attorney’s Office and our local, state and federal law enforcement partners have mounted an all-out assault on violent crime. As evidenced here, when we bring federal charges for firearms offenses, we intend to seek justice swiftly - and that includes long prison sentences with no parole.”
Robert Johnson, 18, of Nashville, was charged yesterday in a criminal complaint with carjacking and using, carrying and brandishing a firearm during a crime of violence.
According to the complaint, on the evening of June 22, 2018, officers with the Metropolitan Nashville Police Department (MNPD) located a stolen Hyundai vehicle in the James Cayce Public Housing Development. When the officers attempted to stop the vehicle, the driver fled in the car and subsequently crashed near the Shell gas station, located at 1331 Briarville Road. The complaint alleges that the driver then used a rifle and carjacked a Ford Fusion from the vehicle’s occupant at the Shell station and fled to the Charter Village Apartments in Madison, where he entered an occupied apartment. The occupants of the apartment immediately fled and called police.
The MNPD SWAT Team subsequently arrived and took Johnson into custody. Officers also recovered an AK-47 style assault rifle at the scene.
If convicted, Johnson faces up to fifteen years in prison and an additional mandatory seven years, consecutive to any other sentence imposed.
In another prior incident on June 11, 2018, Raphael Mandez Utley, 32, of Springfield, Tennessee, was charged with being a convicted felon in possession of a firearm after Springfield police officers responded to a fight and shots being fired call on May 27, 2018. Responding officers saw Utley standing next to a vehicle and holding a rifle over the roof of the car. Officers also heard Utley exclaim, “Yeah, we gonna shoot the police, b—ch.” When the officers turned around to approach Utley, he fled on foot and was apprehended a short distance away. Springfield police officers recovered a loaded AK-47 style assault rifle in the bushes near the place they had initially observed him.
Utley was found to have previously been convicted of voluntary manslaughter, aggravated assault and reckless endangerment in Robertson County, Tennessee.
Utley faces up to at least 10 years in prison, if convicted.
U.S. Attorney Cochran commended the response and investigation of these cases by the ATF; the Metropolitan Nashville Police Department; the Springfield Police Department; and Assistant U.S. Attorney Robert McGuire, who is prosecuting the cases.
Charges in these cases are merely accusations. The defendants are presumed innocent until proven guilty in a court of law.
Federal Indictments Unsealed in Cheatham County Taser IncidentRead the Press Release
Federal indictments were unsealed today charging current and former supervisory corrections officers at the Cheatham County Jail in Ashland City, Tennessee, with federal civil rights and obstruction offenses, announced U.S. Attorney Don Cochran of the Middle District of Tennessee and Acting Assistant Attorney General John Gore of the Civil Rights Division. Former Corporal Mark Bryant is charged with two counts of deprivation of rights under color of law and two counts of obstruction of justice. Sergeant Gary Ola is charged with two counts of making false statements to federal investigators. Both were arrested earlier today and will make initial appearances before a U.S. Magistrate Judge later this afternoon.
Bryant’s indictment alleges that, on November 5, 2016, he twice used unlawful force on a restrained 18-year-old detainee inside the jail. In the first incident, Bryant used a Taser to stun the detainee four times for a total of approximately 50 seconds while the detainee was in a restraint chair. In a second incident that occurred on the same night, Bryant Tased the detainee for approximately 11 seconds without legitimate justification after the detainee was placed in handcuffs and surrounded by multiple officers. As a result of these unjustified uses of force, the detainee sustained bodily injury. The indictment further charges that Bryant obstructed justice by submitting false reports about both incidents.
Ola’s indictment alleges that he made materially false statements to investigators in two separate interviews during the investigation of Bryant’s Taser usage. In August 2017, Ola falsely told agents with the FBI and Tennessee Bureau of Investigation that he walked away from Bryant and did not see one or more of the Taser cycles that Bryant used on the restrained detainee. In a second interview with the FBI in May 2018, Ola stated falsely that he did not see Bryant Tase the detainee after officers placed the detainee in handcuffs.
If convicted, Bryant faces a maximum sentence of 10 years in prison for the color of law charges and 20 years in prison for the obstruction charges, three years of supervised release, and a fine of up to $250,000. Ola faces a maximum sentence of five years in prison, three years of supervised release, and a fine of up to $250,000.
These cases were investigated by the Federal Bureau of Investigation, and are being prosecuted by Assistant U.S. Attorney Sara Beth Myers of the Middle District of Tennessee and Civil Rights Division Trial Attorney Michael J. Songer.
An indictment is merely an accusation and not evidence of guilt. The defendants are presumed innocent until proven guilty.
Livingston Regional Hospital, LLC Agrees to Settle False Claims Act AllegationsRead the Press Release
Livingston Regional Hospital, LLC, a LifePoint Health Inc. company, has agreed to pay $784,000 to settle allegations that Livingston Regional Hospital violated the False Claims Act, announced United States Attorney Don Cochran for the Middle District of Tennessee.
The settlement resolves allegations that between July 9, 2015 and October 31, 2015, Livingston Regional Hospital violated the False Claims Act by knowingly billing Medicare Part A for inpatient psychiatric care that was not medically necessary.
The allegations resolved by today’s settlement were originally raised in a lawsuit filed against Livingston Regional Hospital by two former employees who brought their claims under the qui tam, or whistleblower, provisions of the False Claims Act, 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 whistleblowers will receive $156,800 as their share of the settlement.
This matter was investigated by the Department of Health and Human Services Office of Inspector General 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. Dorothy Griffin and Teresa Long v. Livingston Regional Hospital, LLC and LifePoint Health, Inc., Civil Action No. 2:16-cv-00095 (M.D. Tenn.).
Greenbrier, Tennessee Man Charged with Making Threats Against the PresidentRead the Press Release
Andrew Long Ryan, 37, of Greenbrier, Tennessee, was indicted yesterday by a federal grand jury and charged with two counts of making threats against the President, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. Ryan was initially charged in a criminal complaint on June 18, 2018, and is currently in federal custody.
According to records filed with the court, on May 28-29, 2018, Ryan, a former police officer with the Bowling Green, Kentucky, Police Department, posted several concerning messages on his social media accounts, including a Facebook post that read, “Death is coming,” and a Twitter post that read, “I will kill Donald Trump if you don’t follow my leaders lead.” President Trump visited Nashville, Tennessee on May 29, 2018.
The charging documents allege several instances of erratic behavior by Ryan during the months leading up to the President’s visit and continuing until early June 2018, when Ryan was taken into custody by the Robertson County, Tennessee Sheriff’s Department for violating a protective order previously obtained by his family. The charging documents outline allegations of Ryan’s declining mental state and threatening behavior during the past several months, including placing family members in fear of their safety and previous incidents where he drew the attention of local law enforcement; the Federal Protective Service; the FBI; and the Secret Service.
In addition, according to the charging documents, on February 14, 2018, officers with the Greenbrier Police Department seized several firearms from Ryan’s home and several law enforcement officers expressed concern that Ryan’s behavior would escalate into an act of mass violence.
If convicted, Ryan faces up to five years in prison on each count.
This case was investigated by the United States Secret Service with valuable assistance from the Greenbrier Police Department; the Federal Protective Service; and the FBI. Assistant U.S. Attorney Ben Schrader is prosecuting the case.
An indictment is merely an accusation and the defendant is presumed innocent until proven guilty in a court of law.
Five Sentenced in Heroin Distribution ConspiracyRead the Press Release
The remaining five defendants in a multi-state heroin trafficking conspiracy were sentenced to federal prison yesterday, including three from middle Tennessee and two from Chicago, Illinois, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. Eight persons were indicted on charges of conspiring to distribute heroin and all pleaded guilty.
Those sentenced yesterday were: Steven Allen, 52, of Chicago, Illinois and David Fletcher, 49, of Nashville, Tennessee were each sentenced to 180 months in prison; Travis Jones, 49, of Chicago, was sentenced to 108 months in prison; Maurice Jenkins, 52, of Nashville, was sentenced to 35 months in prison; and Garrette Butler, 64, of Nashville, was sentenced to 6 months in a half-way house.
Previously sentenced in November 2017 were: Charlie Diggs, 46, of Nashville, was sentenced to 72 months in prison; Amanda Morris, 34, of Nashville, was sentenced to 49 months in prison; and Jill Bradley, 54, of Joelton, Tennessee, was sentenced to 3 days in custody.
According to court documents, in late 2014, Fletcher, Diggs, and Jones conspired to acquire multiple kilograms of heroin from Allen and others in Chicago, Illinois and then transport the heroin to middle Tennessee for distribution. Members of the conspiracy transported the heroin to Nashville, Tennessee where it was diluted, packaged for resale and stored at the homes of Butler and Diggs in Nashville. Members of the conspiracy also sold the heroin and recruited others to sell it as well. Law enforcement officers ultimately seized over $38,000 in cash, business properties and several cars from members of the conspiracy.
This case was investigated by the Drug Enforcement Administration; the Tennessee Bureau of Investigation; the Metropolitan Nashville Police Department; and the Cheatham County Sherriff’s Office. The case was prosecuted by Assistant U.S. Attorney Ahmed A. Safeeullah.
Nashville Gang Member Sentenced to 12 Years in Federal PrisonRead the Press Release
Antonio L. Bender, 20, of Nashville, Tennessee, was sentenced yesterday by U.S. District Judge Aleta A. Trauger, to 12 years in prison on federal firearms and obstruction of justice charges, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. There is no parole in the federal system.
Bender was indicted by a federal grand jury on May 10, 2017, on charges of being an unlawful drug user in possession of two firearms; possession of a stolen firearm; and obstruction of justice, by having photographs deleted from his Facebook account which showed him holding a pistol in each hand, in an attempt to impede a federal investigation. Bender pleaded guilty to these charges in December 2017.
According to documents filed with the court, Bender is a Rollin’ 60s Crips gang member and was released from juvenile custody in October 2016. On March 27, 2017, Metropolitan Nashville Police Department (MNPD) officers were responding to a report of shots being fired in the area of the J.C. Napier and Tony Sudekum public housing developments. As they were responding, two officers heard more gunfire and got out of their patrol car to investigate. While on foot, they heard four to five more shots before seeing Bender, who was armed with two pistols equipped with a laser and a flashlight. Bender raised the pistols towards the officers and fired once, as the laser crossed the chest of one of the officers. The officer was not hit and Bender then fled on foot. The officers did not return fire because there were bystanders behind Bender, and they could not fire without endangering them.
The officers chased Bender, who surrendered a short distance away, after discarding the two pistols, a Glock .40 caliber semi-automatic and a Smith & Wesson .40 caliber semi-automatic, which had previously been reported stolen.
The subsequent investigation determined that Bender is an unlawful drug user and he had taken both pistols from an unknown man selling firearms a few weeks earlier. He was involved in a shooting earlier in the day on March 27, 2017, in which he shot a person who had sold one of his associates some fake cocaine. Multiple other shots struck and heavily damaged an occupied car nearby.
This case was investigated by the Metropolitan Nashville Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
Signature Healthcare to Pay More Than $30 Million to Resolve False Claims Act Allegations Related to Rehabilitation TherapyRead the Press Release
Signature HealthCARE, LLC (Signature), a Louisville, Kentucky based company that owns and operates approximately 115 skilled nursing facilities, including seven in middle Tennessee, has agreed to resolve allegations that it violated the False Claims Act by knowingly submitting false claims to Medicare for rehabilitation therapy services that were not reasonable, necessary and skilled, the Department of Justice announced today. The settlement also resolves allegations that Signature submitted forged pre-admission certifications of patient need for skilled nursing to the state of Tennessee’s Medicaid program. Under the settlement agreements, Signature has agreed to pay more than $30 million. As part of the resolution, the State of Tennessee will receive a portion of the settlement.
“Health care providers who engage in deceptive practices place patients at unnecessary risk and contribute to the financial distress of our federal healthcare programs,” said U.S. Attorney Cochran. “Our dedicated teams of civil enforcement attorneys will work tirelessly with the relators who report fraud such as this and with our law enforcement partners who investigate healthcare fraud. When we determine that companies are cheating the taxpayers, we will hold them accountable as we have in this case.”
The government alleged that Signature engaged in various practices that resulted in the submission of claims for unreasonable, unnecessary, and unskilled services to Medicare patients, including: presumptively placing patients in the highest therapy reimbursement level, rather than relying on individualized evaluations to determine the level of care most suitable for each patient’s clinical needs; providing the minimum number of minutes required to bill at a given reimbursement level while discouraging the provision of additional therapy beyond that minimum threshold; and, pressuring therapists and patients to complete the planned minutes of therapy even when patients were sick or declined to participate in therapy.
“Health care fraud impacts the quality of our health care, in addition to costing consumers and taxpayers,” said Acting TBI Director Jason Locke. “We are fortunate to have this strong relationship with our federal law enforcement partners in continuing to investigate this type of behavior in Tennessee.”
“We will continue to work with our state and federal partners to hold healthcare providers accountable for false billing,” said Tennessee Attorney General Herbert Slatery III. “This settlement demonstrates a continued commitment to protecting the integrity of the TennCare program.”
“Signature was charged with illegally boosting profits by providing excessive amounts of therapy to patients whether they needed it or not,” said Special Agent in Charge Derrick L. Jackson for the U.S. Department of Health and Human Services, Office of Inspector General. “The decision to provide therapy should never be based on corporate financial considerations rather than a patient’s medical needs.”
The settlement resolves allegations filed in a lawsuit by Kristi Emerson and LeeAnn Tuesca, former Signature therapy employees, in federal court in Nashville, Tennessee. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The Act also allows the government to intervene and take over the action, as it did in this case. Ms. Emerson and Ms. Tuesca will receive a portion of the recovered funds.
The settlements were the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Offices for the Middle District of Tennessee and the Northern District of Georgia; the Tennessee Bureau of Investigation; the Defense Criminal Investigative Service; and the Department of Health and Human Services, Office of the Inspector General. Assistant U.S. Attorneys Sarah K. Bogni of the Middle District of Tennessee and Lena Amanti of the Northern District of Georgia represent the United States. Assistant Attorney General Philip Bangle represents the State of Tennessee.
The case is captioned United States ex rel. Emerson and Tuesca v. Signature HealthCARE, LLC, et al., Case No. 1:15-cv-00027 (M.D. Tenn.). The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Former Nashville Airport Employee Pleads Guilty to Mail FraudRead the Press Release
John Pat Banister, Sr., 52, of Springfield, Tennessee, pleaded guilty today in U.S. District Court, to mail fraud, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Banister, a former Telecommunications Service Manager at the Metropolitan Nashville Airport Authority (MNAA), was charged by information on April 5, 2018, with one count of mail fraud, after an investigation determined that he had used his airport credentials to fraudulently order 282 cell phones and sold them to another individual for profit. During the plea hearing, Banister admitted that from February 2015 through January 2017, he used his position and purchasing credentials to order the phones and that he personally profited from the scheme. According to court records, the MNAA paid approximately $134,627.21 for the cell phones.
At sentencing, Banister faces up to 20 years in prison, and up to a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and the Nashville International Airport Police. Assistant U.S. Attorney Stephanie N. Toussaint is prosecuting the case.
U.S. Attorney and District Attorney General Announce Federal and State Charges Related to Death of Dickson County Sheriff's DeputyRead the Press Release
In a joint announcement, Attorney General Jeff Sessions and U.S. Attorney Don Cochran announced federal charges against Steven J. Wiggins, 31, of Dickson, Tennessee, following an announcement by District Attorney General Ray Crouch that Wiggins, along with Erika Castro-Miles, 38, also of Dickson, had been indicted for the murder of Dickson County Sheriff’s Sergeant Daniel Baker.
Wiggins was charged in a criminal complaint yesterday afternoon with violations of four federal statutes, including carjacking resulting in the death of Sergeant Baker. The criminal complaint also charges Wiggins with using, carrying and discharging a firearm during the commission of a crime of violence; being a convicted felon in possession of a firearm; and using, carrying and discharging a firearm during a crime of violence, which resulted in the death of another person.
“At the Department of Justice, we back the women and men in blue. Violence against law enforcement officers – federal, state, local or tribal – will not be tolerated,” said Attorney General Sessions. “Sergeant Daniel Baker served our country and the people of Tennessee faithfully and honorably, first as a Marine and then as a member of the Dickson County Sheriff’s Office, before he was killed in the line of duty. The Department of Justice will hold those responsible for his murder accountable to the fullest extent of the law.”
U.S. Attorney Don Cochran, joined by District Attorney General Ray Crouch; Dickson County Sheriff Jeff Bledsoe; and the leadership of local, state and federal law enforcement, made a joint announcement of state and federal charges at a morning news conference in Dickson, Tennessee.
“We stand here in absolute solidarity to say to anyone who commits an act of violence against a law enforcement officer, particularly if you kill or seriously injure one of our men and women in blue, you will face the full force and effect of our justice system and we will be unrelenting in our unified efforts to bring you to justice – just as we have done here,” said U.S. Attorney Cochran.
District Attorney General Ray Crouch announced that a grand jury in Dickson, Tennessee had returned indictments on Wednesday, charging Steven Wiggins and Erika Castro-Miles with the murder of Sergeant Daniel Baker. U.S. Attorney Don Cochran then announced the federal charges brought yesterday against Steven Wiggins.
“Yesterday, a Dickson County grand jury, sitting in special session, returned indictments charging Steven Wiggins and Erika Castro-Miles with the willful and premeditated murder of Sergeant Daniel Baker,” said District Attorney General Ray Crouch. “I look forward to seeking justice on behalf of his family and this community.” I am grateful for the support of the United States Attorney and will work with all of our partners at every level until justice is achieved.”
The complaint alleges that on May 30, 2018, Sergeant Daniel Baker responded to a suspicious vehicle call in Dickson County, Tennessee. Upon arrival, Sergeant Baker encountered two individuals in a vehicle, later identified as Steven J. Wiggins, the driver, and Erika Castro-Miles, the front passenger. The vehicle had a flat tire and was not drivable. Sergeant Baker subsequently determined that the vehicle had been stolen and ordered both occupants out of the car. Wiggins then claimed his door would not open and Sergeant Baker ordered him to exit from the passenger side. According to the body cam video recovered from Sergeant Baker, he then walked around the rear of the vehicle to the passenger side, at which time Wiggins initially fired approximately five rounds from a .45 caliber pistol, Sergeant Baker was struck by at least one of those rounds and attempted to take cover before collapsing several yards away. While Sergeant Baker was lying wounded on the ground, Wiggins fired five additional rounds, the last three appearing to have been fired at close range. Initial autopsy findings showed that Sergeant Baker suffered six gunshot wounds; two to his torso; one to his hand and three to the left side of his head.
The complaint also alleges that after shooting Sergeant Baker, Wiggins re-positioned Baker’s patrol car and dragged Sergeant Baker’s body to the car and placed it in the rear seat and drove away. Wiggins then drove the patrol vehicle three to four miles away and into a field near the intersection of Bear Creek Valley Road and Byrd Road, in Dickson County, where he set a fire inside the vehicle and left the scene.
The complaint further alleges that at the time Wiggins was captured by the Tennessee Highway Patrol on June 1, 2018, his backpack contained a .45 caliber pistol and a Glock pistol.
Subsequent investigation by the Tennessee Bureau of Investigation and the ATF determined that shell casings found at the scene where Sergeant Baker was shot matched the .45 caliber weapon and that the Glock recovered from Wiggins’ backpack had been previously purchased by Sergeant Baker’s wife.
Finally, the complaint alleges that Wiggins had previously been convicted of aggravated assault, a Class C felony, in December 2017 in Williamson County, Tennessee, and had previously been convicted of domestic violence in Dickson County, Tennessee, in 2009. Each of these convictions prohibits Wiggins from possessing a firearm.
U.S. Attorney Cochran praised the work of the Dickson County Sheriff’s Department, District Attorney General Ray Crouch; the Tennessee Bureau of Investigation; the ATF; the Tennessee Highway Patrol; the FBI; and the numerous local, state and federal agencies who participated in the investigation, search and ultimate capture of Wiggins. U.S. Attorney Cochran and Assistant U.S. Attorney Robert McGuire are prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
On 500th Day of Trump Administration, Attorney General Sessions Announces 311 New Assistant United States Attorney PositionsRead the Press Release
On the 500th day of the Trump Administration, Attorney General Jeff Sessions and U.S. Attorney Don Cochran for the Middle District of Tennessee announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce our immigration laws, and help roll back the devastating opioid crisis.
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSA’s will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.
“Under President Trump's strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements,” said Attorney General Jeff Sessions. “We have a saying in my office that a new federal prosecutor is 'the coin of the realm.' When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades.”
In the Middle District of Tennessee, three of these AUSAs will focus on violent crime, and one AUSA will be dedicated to civil enforcement.
“We are serious about reducing violent crime and confronting the opioid crisis head-on,” said U.S. Attorney Don Cochran. “Under Attorney General Sessions’ leadership, we are getting back to the basics of enforcing our nation’s laws and removing violent offenders from our communities. The addition of these prosecutors is long overdue and will enable our office to more effectively support our law enforcement partners at the state and local level. These additional prosecutors will have a devastating effect on violent criminals who continue to operate in the Middle District and will also enable our office to hold those accountable who continue to fuel the opioid epidemic.”
With these positions, five additional violent crime prosecutors have been added in the Middle District of Tennessee in the last six months.
Middle Tennessee Podiatrist Sentenced to Federal Prison for Health Care Fraud SchemeRead the Press Release
Dr. John J. Cauthon, 51, of Murfreesboro, Tennessee, was sentenced yesterday in U.S. District Court to two years in prison for healthcare fraud, announced Don Cochran, U.S. Attorney for the Middle District of Tennessee. Cauthon was indicted in October 2015 on seven counts of healthcare fraud and was found guilty on four counts, after a jury trial in September 2017.
In sentencing Cauthon, Chief U.S. District Judge Waverly D. Crenshaw, Jr., noted that Cauthon had accepted no responsibility for his actions and showed no remorse. Chief Judge Crenshaw found that Cauthon caused an intended loss of $218,000, and ordered restitution of approximately $83,252.63.
Cauthon is a podiatrist in Murfreesboro who contracted to provide podiatric services to residents of nursing homes located throughout Tennessee.
According to court documents, between May 2014 and August 2015, Cauthon engaged in a scheme to defraud Medicare, TennCare, and BlueCross BlueShield of Tennessee, by submitting $200,000 in fraudulent claims for a surgical procedure for nail avulsions, which he did not perform.
At trial, numerous witnesses from nursing homes across the state of Tennessee testified that Cauthon never performed the avulsion procedures that he claimed he performed; including in some instances, claiming that he had performed more than 30 avulsions in a single day. Nursing home residents also testified that Cauthon simply clipped their toenails. Former employees also testified that Cauthon directed them to bill Medicare for services that were medically unnecessary and directed them to fit bed-ridden patients in nursing homes with ankle braces, which served no medical purpose.
This case was investigated by the Tennessee Bureau of Investigation; the U.S. Department of Health and Human Services - Office of Inspector General; and the United States Attorney’s Office for the Middle District of Tennessee. Assistant U.S. Attorneys Henry Leventis and Ryan Raybould prosecuted the case.
Former Nashville Judge Pleads Guilty to Federal Obstruction and Theft ChargesRead the Press Release
A former Davidson County, Tennessee judge pleaded guilty today in U.S. District Court to five counts relating to obstruction of justice, witness tampering, and stealing money from an organization receiving federal funds, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran for the Middle District of Tennessee.
Cason “Casey” Moreland, 60, entered the plea this afternoon before Chief U.S. District Judge Waverly D. Crenshaw Jr.
According to admissions made in connection with Moreland’s plea agreement, in January 2017, the FBI began investigating whether Moreland solicited sexual favors in exchange for favorable judicial treatment while sitting as a General Sessions Court Judge in Nashville and Davidson County, Tennessee. Moreland admitted that in February 2017, he became aware that he was a target of an investigation and took steps to try to obstruct it. Specifically, he devised a scheme to pay a material witness to sign a false affidavit recanting her previous statements, which implicated his criminal conduct in trading judicial favors for sex. He also devised a scheme to have drugs planted in the witness’s car, and then to have her stopped by police, so that she would be arrested and her credibility would be destroyed. Moreland carried out these schemes by using a burner phone registered in the name of “Raul Rodriguez” and communicating with an individual who subsequently became an informant, working at the direction of the FBI.
Moreland also admitted to criminal conduct stemming from his involvement with the General Sessions Drug Treatment Court, a specialized court program designed to provide alternatives to incarceration for certain defendants. The work of the Drug Treatment Court was supported by a nonprofit entity called the Davidson County Drug Court Foundation (the “Drug Court Foundation”). Although Moreland did not have an official position with the Drug Court Foundation, he admitted that he exercised de facto authority over the Drug Court Foundation’s operations.
In connection with his plea agreement, Moreland admitted that beginning in spring 2016, he began embezzling cash from the Drug Court Foundation by directing the Drug Court Foundation’s director to deliver to his office envelopes of cash that she had collected from individuals seeking outpatient treatment for substance abuse. Then, in February 2017, after learning of the FBI’s investigation, Moreland instructed the Drug Court Foundation’s director to destroy all documents and records relating to the cash payments that he had embezzled. Finally, in February 2018, at a time when he was on pre-trial release for the original charges, Moreland admitted that he attempted to tamper with a witness by suggesting to the Drug Court Foundation’s director that she lie to the grand jury investigating his conduct.
Moreland will be sentenced on Aug. 31.
This case was investigated by the FBI and is being prosecuted by Trial Attorneys Lauren Bell and Andrew Laing of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee.
Former Nashville General Sessions Judge Pleads Guilty to Federal Obstruction and Theft ChargesRead the Press Release
Former Davidson County General Sessions Judge Cason “Casey” Moreland, 60, pleaded guilty today in U.S. District Court to five counts relating to obstruction of justice, witness tampering, and stealing money from an organization receiving federal funds, announced U.S. Attorney Don Cochran for the Middle District of Tennessee and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
Moreland entered the plea this afternoon before Chief U.S. District Judge Waverly D. Crenshaw, Jr.
Moreland was originally indicted in April 2017 and charged with five counts of obstruction of justice. This indictment resulted from an FBI investigation into whether Moreland solicited sexual favors in exchange for favorable judicial treatment while sitting as a General Sessions Court Judge in Nashville and Davidson County, Tennessee. According to admissions made in connection with Moreland’s plea agreement, in February 2017, Moreland became aware that he was a target of an investigation and took steps to try to obstruct it. Specifically, he devised a scheme to pay a material witness to sign a false affidavit recanting her previous statements, which implicated his criminal conduct in trading judicial favors for sex. He also devised a scheme to have drugs planted in the witness’s car, and then to have her stopped by police, so that she would be arrested and her credibility would be destroyed. Moreland carried out these schemes by using a burner phone registered in the name of “Raul Rodriguez” and communicating with an individual who subsequently became an informant, working at the direction of the FBI.
A superseding indictment returned on March 15, 2018, charged Moreland with five additional charges stemming from his involvement with the General Sessions Drug Treatment Court, a specialized court program designed to provide alternatives to incarceration for certain defendants. The work of the Drug Treatment Court was supported by a nonprofit entity called the Davidson County Drug Court Foundation (the “Drug Court Foundation”). Although Moreland did not have an official position with the Drug Court Foundation, he exercised de facto authority over the Drug Court Foundation’s operations.
Moreland also admitted that beginning in spring 2016, he began embezzling cash from the Drug Court Foundation by directing the Drug Court Foundation’s director to deliver to his office envelopes of cash that she had collected from individuals seeking outpatient treatment for substance abuse. Then, in February 2017, after learning of the FBI’s investigation, he instructed the Foundation’s director to destroy all documents and records relating to the cash payments that he had embezzled. Finally, in February 2018, at a time when he was on pre-trial release for the original charges, Moreland admitted that he attempted to tamper with a witness by suggesting to the Drug Court Foundation’s director that she lie to the grand jury investigating his conduct.
Moreland will be sentenced on August 31, 2018.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee and Trial Attorneys Lauren Bell and Andrew Laing of the Criminal Division’s Public Integrity Section.
Franklin, Tennessee Man Pleads Guilty to Federal Charges in Natchez Trace Hit & RunRead the Press Release
Marshall Neely III, 59, of Franklin, Tennessee, pleaded guilty today in U.S. District Court to reckless aggravated assault; lying to a federal agent; and obstruction of justice, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Neely was indicted on July 28, 2017, after he struck and injured a bicyclist with his vehicle while driving on the Natchez Trace Parkway on July 8, 2017. After striking the bicyclist, Neely failed to stop and left the scene.
According to court documents, on the morning of July 8, 2017, two individuals were riding their bicycles on the Natchez Trace Parkway when one was struck from behind by a black Volvo SUV. The impact knocked the rider to the ground and destroyed the bicycle. The bicyclist sustained injuries and was transported to Williamson County Medical Center by ambulance. The other bicyclist had a helmet-mounted camera which recorded the collision, as well as the Volvo driving away from the scene. The video of this incident was later posted online and contained a visible license plate and other decals which subsequently led to the identification of the vehicle and its driver, Marshall Neely III.
That same evening, law enforcement officers arrived at Neely’s house and found him unconscious on the floor. Neely later admitted that he had been driving on the Natchez Trace Parkway earlier in the day and claimed someone threw a bicycle at his car. He also admitted that after seeing the video posted online, he removed the decals from the rear window of his car because he knew the decals would lead to his identification.
According to the plea agreement, Neely agrees to accept a term of imprisonment of 10 months, to be followed by 3 years supervised release, when he is sentenced on August 17, 2018. The agreement also calls for Neely to pay $1,210.00 in restitution to the victim.
This case was investigated by the National Park Service and the Williamson County Sheriff’s Department. The case is being prosecuted by Assistant U.S. Attorney Sara Beth Myers.
Clarksville Man Sentenced for Making False Statements to Obtain Subsidized Housing BenefitsRead the Press Release
Joseph Fulmore, Jr., 45, of Clarksville, Tenn., was sentenced today to serve three years on federal probation and to pay $17,210.70 in restitution for making false statements in order to obtain public housing benefits, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. Chief U.S. District Judge Waverly Crenshaw, Jr., also ordered Fulmore to perform 120 hours of community service.
Fulmore was indicted on September 20, 2017, and pleaded guilty on February 2, 2018.
According to court records, on July 6, 2012, Fulmore made application to lease a public housing unit, operated and maintained by the Clarksville Housing Authority (CHA). Federal regulations mandate that applicants for public housing complete an application for admission and continued occupancy as part of an eligibility determination process, which includes disclosing all income, earnings and assets of individuals living in the unit.
Also in July 2012, Fulmore applied for and obtained an FHA loan to purchase a single family home. The loan application for this property listed income and assets not previously reported to the CHA, including a monthly beneficiary payment in the amount of approximately $2,800.00.
Fulmore subsequently purchased and moved to the single family home and lived there until April 2014. During this time, Fulmore continued to make the reduced rental payments for the public housing unit.
Court records also reflect that for each of the three subsequent years that Fulmore received the public housing benefits, he submitted annual certifications to the CHA, which falsely reported and concealed his true assets and household income, which allowed him to fraudulently receive the subsidized public housing unit.
This case was investigated by the U.S. Department of Housing and Urban Development-Office of Inspector General. Assistant U.S. Attorney Stephanie N. Toussaint prosecuted the case.
Mid-State Trucking Company Agrees to Settle Contract and Common Law AllegationsRead the Press Release
Tracie McCormick, Inc., d/b/a McCormick Trucking (“McCormick”), based in Murfreesboro, Tenn., has agreed to pay $750,000 to settle contract and common law allegations of double billing the United States Postal Service (“USPS”) under its contracts for hauling mail, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
“This Office remains committed to protecting the public fisc through affirmative civil enforcement investigations and litigation,” said U.S. Attorney Don Cochran. “Be it healthcare fraud or government contracting disputes, we will diligently pursue any violations of federal law that result in a loss of taxpayer funds.”
The settlement agreement addresses conduct that occurred from approximately January 2011 through November 2013. During that time, the United States alleged that McCormick used credit cards issued by the USPS on certain fuel index routes, the governing contracts of which already provided itemized payment to McCormick for fuel purchased for use on those routes. This double billing resulted in USPS paying twice for fuel used on the specified routes.
"We are gratified to have contributed to this investigation and applaud the exceptional work by the investigative team and the U.S. Attorney’s Office,” said Scott Pierce, Special Agent in Charge, U.S. Postal Service Office of Inspector General. “Along with our law enforcement partners, the USPS OIG will continue to aggressively investigate issues that have a detrimental financial impact on the Postal Service.”
This matter was investigated by the USPS Office of Inspector General and the United States Attorney’s Office for the Middle District of Tennessee. The United States is represented by Assistant U.S. Attorney Christopher C. Sabis.
Two Nashville Men Receive Lengthy Prison Sentences for Violent Crime and Drug OffensesRead the Press Release
NASHVILLE, Tenn. – May 15, 2018 – Two Nashville, Tennessee men have been sentenced in U.S. District Court to more than 20 years in prison for committing crimes involving drugs and violence, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
Michael D. Bright, aka Groove, 27, was sentenced on May 11, 2018, to 23 years in prison, for his involvement in two armed robberies of Nashville businesses. Yesterday, Emmanuel Thirkill, aka Hot Boy, 36, was sentenced to 21 years and 10 months in prison on firearms and drug offenses.
According to court documents, Michael Bright was one of four participants in the armed robbery of the Express Market, located at 2408 Antioch Pike in Nashville, on June 3, 2015. During that robbery, Bright acted as the driver while the other participants, Dominique Cordell Wallace, aka DeuceFace, Robert Dewayne Brooks, aka YG, and Demontay Thomas entered the store with guns. Thomas crawled under the counter while Brooks was climbing over the counter. Brooks became startled by Thomas and began firing his pistol, striking Thomas and killing him. Wallace then shot a clerk in the head before fleeing the store with Brooks and Bright.
On June 21, 2015, Bright again participated in an armed robbery of the Jack in the Box, located at 622 McGavock Pike in Nashville. During this robbery, Bright and Corin Porter forced several female employees at gunpoint, into the office area and took money from the safe, while threatening them with the firearms. Michael Wilson acted as the driver for this robbery.
Bright pleaded guilty on December 12, 2017. All other defendants have also pleaded guilty and are awaiting sentencing.
In an unrelated case, Emmanuel Thirkill, aka Hot Boy, 36, was sentenced yesterday to 21 years and 10 months in prison on firearms and drug offenses.
Court documents reflect that beginning in May 2016, after being released from prison, Thirkill began selling cocaine in the Tony Sudekem Public Housing Development on a daily basis. Thirkill became the subject of a criminal investigation by the Metropolitan Nashville Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives as part of a concerted effort to reduce crime in the city’s public housing areas.
The investigation determined that Thirkill was receiving a supply of cocaine on a weekly basis, which he stored in his Antioch home located near Thomas Edison Elementary School. On December 6, 2016, Metro Nashville police officers attempted to stop Thirkill as he was leaving his home, but Thirkill fled and temporarily escaped capture. A search warrant was subsequently obtained and executed at Thirkill’s home and officers found five ounces of cocaine, $15,000 cash and a loaded Glock 9mm pistol, which was determined to have been stolen during a home burglary in Sumner County, Tennessee in 2013. Metro Police located and arrested Thirkill the following day at a hotel in West Nashville.
Thirkill pleaded guilty to these offenses on October 23, 2017.
Thirkill has four prior felony convictions in state court, since 2001, for trafficking cocaine; two prior felony convictions for being a convicted felon in possession of a firearm; and a conviction for attempted reckless aggravated assault.
These investigations were conducted by the Metropolitan Nashville Police Department’s Gang Division and the ATF. Assistant U.S. Attorneys Sunny A.M. Koshy and Philip H. Wehby prosecuted the cases.
White County Business Owner Sentenced to Three Years in Prison for $43 Million Investment SchemeRead the Press Release
Jeffery Lynn Gentry, 40, of White County, Tennessee, was sentenced today in U.S. District Court to 36 months in prison, followed by three years of supervised release, for wire fraud and money laundering, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. U.S. District Court Judge Aleta A. Trauger also ordered Gentry to pay $10, 410,672.74 in restitution.
Gentry was charged on July 5, 2017, with operating a $43 million investment scheme in which he bilked investors out of more than $10 million. He pleaded guilty on August 10, 2017.
According to court documents, Gentry owned and operated Gentry Brothers Tractor Supply and Gentry Auto, both located in Sparta, Tennessee. Beginning in 2012 and continuing to mid-December of 2016, Gentry devised and executed a scheme to defraud and obtain money and property from investors, promising high rates of return on investments, purportedly used to purchase farm-related equipment to satisfy state contracts and producing significant profits.
Gentry falsely represented to investors, including customers, friends, acquaintances, and family members, many of whom lived in White County, Tennessee, that he was bidding on and winning contracts from various states, including Tennessee, to supply equipment, including tractors, lawn mowers, and other farm-related equipment through his tractor supply company.
Through this scheme, Gentry convinced more than 50 individuals to invest funds totaling approximately $43 million and caused financial loss to investors of more than $10 million.
Despite his assurances to investors of significant returns, Gentry admitted that he never intended to invest the funds as promised but instead, used the money to subsidize his lifestyle, amassing assets worth a substantial amount of money, including numerous tracts of real estate and vehicles.
In March 2016, Gentry also used investor funds to start up and support a new business venture, Gentry Auto, a used car lot, transferring more than $365,000 of investor funds from the Gentry Brothers Tractor Supply Company to the Gentry Auto business between March 24, 2016 and December 6, 2016.
During this investigation, the Asset Forfeiture Unit of the U.S. Attorney’s Office and the U.S. Marshals’ Service seized the assets of Gentry, including his businesses, vehicles, farm equipment and livestock, houses, tracts of land and approximately $300,000 cash. These assets were liquidated on August 26, 2017, by the U.S. Marshals’ Service at an auction in Sparta, Tennessee. This auction and other liquidation proceedings generated more than $1.3 million for victim restoration.
This case was investigated by the FBI, the IRS-Criminal Investigation and the U.S. Marshal’s Service. The case is being prosecuted by Assistant U.S. Attorney Kathryn Risinger and Assistant U.S. Attorney Debra Phillips handled the forfeiture of Gentry’s assets.
Murfreesboro Man Pleads Guilty to Federal Civil Rights Charges Relating to Islamic Center VandalismRead the Press Release
Charles Dwight Stout, III, 20, of Murfreesboro, Tennessee, pleaded guilty today in U.S. District Court to conspiracy to damage religious property and to causing damage to religious property because of its religious character, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Stout was indicted in September 2017 along with Thomas Gibbs, 18, also of Murfreesboro, Tennessee, and charged with conspiring to commit a civil rights violation and committing a civil rights violation through damaging and defacing the Islamic Center of Murfreesboro.
According to the plea agreement, Stout admitted that on July 10, 2017, he conspired to vandalize the Islamic Center by placing bacon, a pork product forbidden by Islam, around an entrance; and spray painted profane references to Allah on multiple parts of the Center’s exterior; and concealed his identity in the commitment of these crimes by wearing a Soviet World War II-era gas mask.
Stout was previously indicted on August 30, 2017, for obstructing a federal investigation by deleting photographic evidence. Under the terms of the plea agreement, the government will dismiss the obstruction charge and Stout agrees to a sentence of one year supervised release and the payment of restitution in an amount determined by the court when he is sentenced on August 13, 2018.
Charges against Thomas Gibbs are still pending and he is presumed innocent until proven guilty.
This case was investigated by the FBI and the Rutherford County Sheriff’s Office. Assistant United States Attorneys Sara Beth Myers and Henry C. Leventis are prosecuting the case.
Former Nashville Metro Police Sergeant Facing Federal Theft and Money Laundering ChargesRead the Press Release
An indictment was unsealed today, charging former Nashville Metropolitan Police Department (MNPD)Sergeant James Dunaway with two counts of theft from federal program funds and two counts of money laundering, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
Dunaway, 43, of Old Hickory, Tennessee, surrendered this morning to U.S. Marshals after being indicted by a federal grand jury on Wednesday. He will appear before a U.S. Magistrate later this afternoon.
According to the indictment, during the period of November 18, 2015 through November 16, 2017, Dunaway was a supervisor in the MNPD Specialized Investigation Division-Narcotics Unit and was responsible, among other things, for monitoring and executing search warrants.
The indictment alleges that during the execution of search warrants on five separate occasions, Dunaway stole a portion of the cash discovered and seized at each location, including:
the November 18, 2015 search of a residence off Pleasant Hill Road in Nashville, where more than $100,000 was seized;
the April 10, 2017 search of a residence off Robertson Road in Nashville, where more than $500,000 was seized;
the April 26, 2017 search of a residence off Pleasant Hill Road in Nashville, where more than $182,000 was seized;
the September 13, 2017 search of a residence off Spencer Enclave Way in Nashville, where more than $70,000 was seized; and
the November 15, 2017 search of a hotel room in which the MNPD Office of Professional Accountability had placed marijuana, $28,000 cash and video cameras for the purpose of conducting an integrity check. Video cameras captured Dunaway placing money in his pockets during the search and the indictment alleges that Dunaway stole $5,860.00 during the execution of this search warrant.
The indictment also alleges that between April 11, 2017 and May 8, 2017, Dunaway made approximately $40,540.00 in cash deposits and on May 1, 2017, he obtained a cashier’s check with $42,500.00 cash, which he stole during the searches. Dunaway then used the cashier’s check to purchase a 2014 Toyota Sequoia.
The indictment further alleges that during the course of this scheme, Dunaway embezzled, stole and converted approximately $105,910.00 to his own use.
If convicted, Dunaway faces up to 10 years in prison and a $250,000 fine on each count.
This case was investigated by the FBI and the Metropolitan Nashville Police Department. U.S. Attorney Don Cochran and Assistant U.S. Attorney Ryan Raybould are prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Hickman County Man Sentenced to 30 Years in Prison for Child Pornography CrimesRead the Press Release
James Earl Tuttle, 45, of Lyles, Tennessee was sentenced today by U.S. District Court Judge William L. Campbell, Jr., to 30 years in prison for production of child pornography, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
Tuttle was indicted by a federal grand jury on July 6, 2016, and charged with two counts of production of child pornography. He pleaded guilty to one count of the indictment on March 16, 2017.
According to court records, in April 2016, a 15 year-old girl disclosed to her mother that Tuttle had been raping her since she was 13 years old. The family reported the repeated rapes to the Fairview Police Department, and an investigation ensued. Investigators found that on at least two occasions in November 2015, Tuttle also had recorded sexually explicit images of the girl. The investigation revealed that not only had Tuttle raped the child for several years, but he also tried to convince her to have sex with other men for money.
During the execution of a search warrant in April 2016, Tuttle confessed to taking nude pictures of the child and admitted sharing the pictures with others on-line. Tuttle later admitted to raping the girl on multiple occasions, stating that he, “knew it was wrong,” but blamed the child for seducing him when she was 13 years old.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section of the Department of Justice, 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.
This matter was investigated by the Fairview Police Department, the Hickman County Sheriff’s Office, and the Federal Bureau of Investigation. Assistant U.S. Attorney S. Carran Daughtrey prosecuted the case on behalf of the United States
Nashville Return Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
Ironelly Mora, 39, a Nashville resident and tax return preparer, pleaded guilty in U.S. District Court today, to one count of preparing a false tax return, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
According to court documents, Mora owned and operated Latinos Unidos tax preparation business located in Nashville, Tennessee. Mora admitted that from 2013 through 2017, she prepared and filed false tax returns for her clients to help grow her business. Mora inflated her customers’ returns by claiming false child tax credits, exemptions and false filing statuses. Mora admitted that she also filed her own false tax returns for tax years 2014 through 2016 by underreporting her income from Latinos Unidos. In total, Mora caused a tax loss of $379,540 to the Internal Revenue Service.
Mora will be sentenced on August 3, 2018, and faces a maximum sentence of three years in prison, as well as a period of supervised release, restitution, and monetary penalties.
The case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Ryan R. Raybould is prosecuting the case on behalf of the United States.
Gangster Disciples Member Indicted for 2007 Clarksville MurderRead the Press Release
A federal grand jury in Nashville, Tennessee returned a superseding indictment today, charging a Gangster Disciples member with murder in aid of racketeering and use of a firearm resulting in death, announced U.S. Attorney Don Cochran, for the Middle District of Tennessee, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, and Marcus S. Watson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Nashville Field Division.
Rex Andrew Whitlock, aka Stackhouse, 33, of Clarksville, Tennessee, is charged in a 45-count superseding indictment. Whitlock is already in custody in connection with this investigation, having been indicted on federal drug conspiracy charges in June 2017 and on federal racketeering charges in December 2017.
“This superseding indictment reflects the government’s ongoing efforts to hold the Gangster Disciples organization accountable for acts of violence in Middle Tennessee over the past decade,” said U.S. Attorney Cochran. “By this prosecution, we also seek to bring closure to the family of a victim of gang violence in Clarksville and justice to the community that suffered as a result of this crime. As this investigation continues, we will continue to bring charges like these whenever the evidence permits.”
“According to today’s superseding indictment, Gangster Disciples member Rex Andrew Whitlock allegedly laid in wait for a member of a rival gang outside a gas station in Clarksville, followed him down the street, and murdered him,” said Acting Assistant Attorney General Cronan. “The Department of Justice is committed to prosecuting gangs like the Gangster Disciples and to eradicating the scourge of violence that this gang and others like it have inflicted on too many communities.”
“This superseding indictment highlights our commitment to vigorously investigate those criminal gangs who terrorize our neighborhoods,” said ATF Special Agent in Charge, Marcus S. Watson. “All citizens have an absolute right to feel safe in their respective communities. ATF and its partners are committed to investigating and removing those individuals who illegally possess firearms and commit crimes.”
According to the superseding indictment, Whitlock and other members of the Gangster Disciples waited outside Dodge’s Chicken, a gas station in Clarksville, in the early morning hours of September 1, 2007. Whitlock and other Gangster Disciples then followed a member of the rival Bloods gang as he left Dodge’s Chicken and drove down Tobacco Road in Clarksville, at which time Whitlock shot and killed him.
If convicted, Whitlock potentially faces imposition of the death penalty.
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; and the 19th Judicial District Drug Task Force. Assistant United States Attorney Ben Schrader and U.S. Department of Justice Trial Attorney Ivana Nizich are prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty in a court of law.
Cultural Resource Analysts, Inc. Reaches Agreement with United States to Resolve Unauthorized Archaeological SurveyRead the Press Release
NASHVILLE, Tenn. – April 17, 2018 – Cultural Resource Analysts, Inc. (CRA), headquartered in Lexington, Kentucky, has entered into a deferred prosecution agreement with the United States to resolve violations of the Archaeological Resources Protection Act (ARPA), announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
On December 22, 2017, National Park Service Rangers with the Natchez Trace Parkway issued a notice of violation to CRA for conducting an unauthorized archaeological survey on Parkway lands, in connection with the proposed Stephen’s Valley development in Davidson and Williamson Counties in Tennessee.
According to the notice of violation, in November 2016, CRA conducted excavation activities, without the required ARPA permits, which resulted in the removal of Native American archaeological artifacts, which were more than 100 years old. The excavation was in advance of a proposed tree planting effort to screen the development from Parkway visitors’ view.
The agreement between the United States and CRA defers prosecution for criminal violations of the ARPA and requires CRA to pay a penalty in the amount of $15,024, the amount of damages determined from the unauthorized excavation, and to return all artifacts discovered during the process.
“The U.S. Attorney’s Office is committed to enforcing laws that Congress enacted to protect archaeological resources,” said U.S. Attorney Cochran. “This agreement is fair and just and properly mitigates the damage by deferring criminal prosecution, requiring the return of the artifacts and imposing a penalty for failing to secure the required permits.”
“This situation could have easily been avoided had CRA applied for and received an ARPA permit,” said Superintendent Mary Risser, of the Natchez Trace Parkway. “Archaeological resources on National Park Service property belong to everyone and we have a responsibility to prevent their unauthorized removal. Parkway staff will use the funds paid by CRA to preserve cultural resources on the Parkway.”
This action was initiated by Rangers of National Park Service – Natchez Trace Parkway. Assistant U.S. Attorney Sara Beth Myers handled the case on behalf of the government.
Ranking Nashville Gang Member Sentenced to More Than 24 Years in Federal PrisonRead the Press Release
NASHVILLE, Tenn.- April 18, 2018 – Deunta Finch, aka LT, 28, of Nashville, Tennessee, was sentenced on Friday to 290 months in prison on federal firearms and robbery charges, announced U.S. Attorney Don Cochran, for the Middle District of Tennessee. Finch pleaded guilty in January 2017 to being a convicted felon in possession of a firearm and ammunition; attempting to commit a robbery affecting interstate commerce; and to possessing and discharging a firearm in that attempted robbery.
According to court documents, Finch was a ranking member of the Athens Park Bloods street gang and had multiple, previous state felony convictions, including two convictions for being a felon in possession of firearms, a conviction for robbery and a conviction for reckless endangerment with a weapon. As a convicted felon, Finch was prohibited from possessing firearms or ammunition.
Court documents outline that on June 21, 2015, Finch brandished a firearm and stole another firearm from a juvenile, while in the J.C. Napier public housing development. Two days later, Finch was riding in a car with another juvenile and became involved in a shootout with the occupants of another vehicle. Finch was injured in the shootout, but left the scene and was later located and transported to a local hospital for treatment. After treatment, he was arrested on outstanding state warrants and then bonded out of custody. Finch failed to appear in court as required and was arrested by Metro Nashville SWAT officers in another car on November 12, 2015. A 9mm pistol was recovered from the glove compartment of that car during this arrest. Ballistics evidence revealed that the recovered firearm had been used one week earlier, on November 5, 2015, in a drug related shooting, in which Finch robbed a drug dealer in the Lexington Garden Apartments in Madison, Tennessee. His intended victim resisted, and Finch shot and severely wounded the victim. Finch then left the area with a quantity of cocaine which he took from his victim.
Finch entered into a plea agreement with the government on January 24, 2017 and agreed to a 15-year sentence. Seven weeks after Finch entered into the agreement, he assaulted another federal prisoner at the Grayson County Detention Facility, in Leitchfield, Kentucky and seriously injured him, including breaking his jaw and ribs. The government then filed a motion to withdraw from the plea agreement, citing Finch’s criminal conduct in committing the assault that violated the terms of the agreement.
U.S. District Judge Marvin Aspen noted Finch’s extensive criminal history and countless opportunities to rehabilitate and remarked that, “the protection of society was the most important factor,” before sentencing him to more than 24 years in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department, Gang Division. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Nashville Man Sentenced to 105 Years in Prison for Child Pornography CrimesRead the Press Release
Crimes involved Infant and Toddler
Defendant Dressed as Spider-Man Window Washer at Children’s HospitalNASHVILLE, Tenn. – April 16, 2018 – Jarratt A. Turner, 36, of Nashville, Tennessee was sentenced today in U.S. District Court to 105 years in prison for multiple instances of production of child pornography and transportation of child pornography, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.
“The sentence imposed by the Court should insure that this defendant will never have another opportunity to inflict his perverted sexual desires upon another innocent child,” said U.S. Attorney Cochran.
According to court records, Turner befriended two different families who had very young children, including a toddler boy and an infant girl, and he offered to babysit these children. Between October 2014 and May 2015, Turner took sexually explicit images and videos of the toddler girl on 10 different occasions and of the infant boy on six different occasions, while in his basement apartment in Nashville. The sexually explicit material included depictions of himself sexually molesting the two very young children, who were between the ages of 12 and 31 months during this period. After making these recordings, Turner distributed these images via the internet to other like-minded individuals and in an attempt to avoid detection of law enforcement, he only used publicly available Wi-Fi networks to collect and distribute child pornography. With the help of a manager of a business where Turner frequently accessed the internet, law enforcement officers were able to identify the defendant more quickly.
Court records also reference Turner’s characteristic behavior in attempting to access other vulnerable children by dressing as Spiderman when washing windows at a local children’s hospital, during the time he was raping these children.
“Children of this community are a little safer today with this sexual predator behind bars,” said Assistant Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigation’s operations in Tennessee. “The fact he would film, and then upload to the internet, videos of himself molesting an infant and toddler, then take elaborate steps to conceal his activities, represents the extreme danger he posed to the community.”
Turner was charged on June 1, 2015, with 16 counts of Production of Child Pornography and Transportation of Child Pornography. He pleaded guilty to all counts of the indictment on March 20, 3017. He was sentenced today by visiting U.S. District Court Judge Marvin E. Aspen.
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 - Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This matter was investigated by Homeland Security Investigations, and the United States is represented by Assistant U.S. Attorney S. Carran Daughtrey.
Brentwood, Tennessee Man Sentenced for Possessing Unregistered Sub-Machine GunsRead the Press Release
BRENTWOOD, TENNESSEE MAN SENTENCED FOR POSSESSING UNREGIGISTERED SUB-MACHINE GUNS
NASHVILLE, Tenn. – April 12, 2018 – Jerry Christopher Bostick, 58, of Brentwood, Tennessee, was sentenced yesterday in U.S. District Court, to pay a $100,000 fine and serve five years on probation, with the first six months on home confinement, for possessing unregistered sub-machine guns, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
Bostick was indicted in October 2015 for possessing a .45 caliber sub-machine gun and a 9mm sub-machine gun, which were not registered in the National Firearms Registry as required by law. Bostick pleaded guilty to the charges in the indictment on July 18, 2017.
Chief U.S. District Judge Waverly Crenshaw, Jr., also ordered the firearms to be forfeited and that Bostick serve 500 hours of community service.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and prosecuted by Assistant U.S. Attorney Joseph Montminy.
Two Tennessee Health Care Executives Charged for Role in $4.6 Million Medicare Kickback SchemeRead the Press Release
Nashville, Tenn. – April 9, 2018 - Two Tennessee health care executives were charged in an indictment unsealed today for their alleged participation in a $4.6 million Medicare kickback scheme involving durable medical equipment (DME).
Joining U.S. Attorney Don Cochran of the Middle District of Tennessee in making the announcement were Acting Assistant Attorney General John P. Cronan 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. Khin of the U.S. Department of Defense Criminal Investigative Service’s (DCIS) Southeast Field Office and Director Mark Gwyn of the Tennessee Bureau of Investigation.
John Davis, 40, of Brentwood, Tennessee, and Brenda Montgomery, 69, of Camden, Tennessee, were each charged with one count of conspiracy to defraud the United States and to pay and receive health care kickbacks, and seven counts of paying and receiving health care kickbacks. Davis is the former CEO of Comprehensive Pain Specialists (CPS), a large, multi-state pain management company. Montgomery is the owner, founder and CEO of CCC Medical Inc., a DME company with five locations in Tennessee and headquartered in Camden. Davis and Montgomery were arrested this morning and appeared this afternoon before U.S. Magistrate Judge Alistair E. Newbern of the Middle District of Tennessee.
“Our Medicare program is designed to help those who are most vulnerable and in need of medical services and equipment,” said U.S. Attorney Cochran. “Stealing funds from our health care system places the vulnerable at greater risk and diverts public funds into the pockets of the greedy individuals who exploit those with the greatest need. We will be un-relenting in our efforts to bring to justice, those individuals and corporations who choose to profit at the expense of the health of those individuals with the greatest need.”
“The charges against John Davis and Brenda Montgomery, alleging almost three quarters of a million dollars in illegal health care kickbacks and the submission of over $4.6 million in fraudulent claims to Medicare, demonstrate the Department of Justice’s commitment to protect taxpayer dollars and to hold corporate executives accountable for fraudulent and abusive conduct,” said Acting Assistant Attorney General Cronan. “Kickbacks such as those alleged in the indictment distort markets and undermine public trust. The Criminal Division and our law enforcement partners will continue to root out fraud, waste and abuse in our health care programs, no matter how complex the schemes.”
“Kickback schemes like this one do not benefit patients or the Medicare program,” said Special Agent in Charge Jackson. “These arrangements are simply designed to line the pockets of the defendants at the expense of the taxpayer.”
“In concert with our partner agencies, DCIS aggressively investigates fraud and corruption that undermines the integrity of Department of Defense programs,” said Defense Criminal Investigative Service Special Agent in Charge John F. Khin. “These defendants selfishly put greed and personal gain before the safety and well-being of our military members, their families, and retirees, who deserve the best medical care available."
“Having the support and cooperation of our partner local, state and federal agencies is critical in our combined efforts to protect Tennesseans from individuals attempting to derive a personal benefit at the expense of patients and taxpayers,” said TBI Director Mark Gwyn.
According to the indictment, from June 2011 to June 2017, Montgomery paid Davis, approximately 60 per cent of the Medicare proceeds, as kickbacks, in exchange for Davis directing CPS employees and providers to send Medicare DME orders and referrals to Montgomery’s CCC Medical. It is alleged that Montgomery and Davis used a nominee and filed false tax documents to disguise the kickbacks.
Beginning in or around May 2015, according to the indictment, Davis and Montgomery renegotiated their illegal agreement to further obscure their personal contract from Medicare and from CPS owners and employees. The indictment alleges that 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). Davis and Montgomery renegotiated the sham transaction after Montgomery complained that her referrals from CPS had been lower than expected, and Montgomery ultimately paid $150,000 for the shell, ProMed, according to allegations in the indictment. The true purpose of this payment was to induce Davis to continue driving CPS referrals to CCC Medical, the indictment alleges.
The indictment alleges that Montgomery, through CCC Medical, submitted over $4.6 million in fraudulent claims to Medicare, and that Medicare paid a total of $2.6 million on those claims. Further, the indictment alleges that Montgomery paid more than $770,000 in illegal kickbacks to Davis.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by HHS-OIG, DCIS and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Ryan Raybould of the Middle District of Tennessee and Trial Attorney Anthony Burba of the Criminal Division’s Fraud Section and are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws throughout the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have collectively billed the Medicare program for over $12.5 billion.
Tennessee Man Indicted for Hate Crime and Lying to the FBIRead the Press Release
The Department of Justice today announced that Christopher Beckham, 32, of Nashville, Tennessee, was indicted by a federal grand jury in the Middle District of Tennessee on charges of violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act and lying to the FBI. Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Don Cochran of the Middle District of Tennessee made the announcement.
According to the indictment, on or about Oct. 24, 2017, in the Middle District of Tennessee, Beckham saw two teenage girls wearing hijabs and said “Allahu Akbar!” and “Go back to your country!” He then attacked the girls’ father by swinging a knife and punching at him, and shouted derogatory comments at the family. Moreover, according to the indictment, on or about March 12, 2018, Beckham falsely claimed to FBI special agents that he saw the girls trying to break into cars; that he never swung a knife at their father; and that, after he pulled out his knife, the girls yelled “Allahu Akbar!,” and then either one or both of them hit him on the back of the head.
If convicted on the hate crime charge, Beckham faces a maximum sentence of ten years in prison, three years of supervised release, and a fine of up to $250,000. The charge of making false statements to the FBI provides for a maximum sentence of five years in prison, three years of supervised release, and a fine of up to $250,000.
This case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Sara Beth Myers of the Middle District of Tennessee and Trial Attorneys Christine M. Siscaretti and Rachel Kincaid of the Civil Rights Division of the Department of Justice.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Nashville Man Indicted for Hate Crime and Lying to the FBIRead the Press Release
NASHVILLE MAN INDICTED FOR HATE CRIME AND LYING TO THE FBI
NASHVILLE, Tenn. – April 9, 2018 - The Department of Justice today announced that Christopher Beckham, 32, of Nashville, Tennessee, was indicted by a federal grand jury on charges of violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act and lying to the FBI. U.S. Attorney Don Cochran of the Middle District of Tennessee and Acting Assistant Attorney General John Gore of the Civil Rights Division made the announcement.
The indictment was unsealed today, following Beckham’s arrest on Friday night. He will appear before a U.S. Magistrate judge later today.
According to the indictment, on or about Oct. 24, 2017, in the Middle District of Tennessee, Beckham saw two teenage girls wearing hijabs and said “Allahu Akbar!” and “Go back to your country!” He then attacked the girls’ father by swinging a knife and punching at him, and shouted derogatory comments at the family. Also, according to the indictment, on or about March 12, 2018, Beckham falsely claimed to FBI special agents that he saw the girls trying to break into cars; that he never swung a knife at their father; and that, after he pulled out his knife, the girls yelled “Allahu Akbar!,” and then either one or both of them hit him on the back of the head.
If convicted on the hate crime charge, Beckham faces a maximum sentence of ten years in prison, three years of supervised release, and a fine of up to $250,000. The charge of making false statements to the FBI provides for a maximum sentence of five years in prison, three years of supervised release, and a fine of up to $250,000.
This case is being investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Sara Beth Myers of the Middle District of Tennessee and Trial Attorneys Christine M. Siscaretti and Rachel Kincaid of the Civil Rights Division of the Department of Justice.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Tad Cummins Pleads Guilty to Transporting A Minor Across State Lines and Obstruction of JusticeRead the Press Release
NASHVILLE, Tenn. – April 5, 2018 – Tad Cummins, 51, of Columbia, Tennessee, pleaded guilty today in U.S. District Court to charges of transporting a minor across state lines for the purpose of engaging in criminal sexual conduct and obstruction of justice, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
“The Government has been ready and eager to try Mr. Cummins on the charges brought by the grand jury,” said U.S. Attorney Don Cochran. “In view of today’s development and Mr. Cummins’ decision to plead guilty, we are pleased that the victim no longer faces the possibility of enduring a lengthy trial. We applaud the efforts of the FBI, the Tennessee Bureau of Investigation, the Maury County Sheriff’s Department and the many law enforcement agencies across the country that contributed to the search and ultimate rescue of the victim and the arrest of Mr. Cummins. We now look forward to the sentencing of Mr. Cummins and bringing closure to this case.”
Cummins was initially charged in a criminal complaint on April 20, 2017, after being located in Cecilville, California with the 15-year-old female victim. Cummins and the 15-year old had been the subject of a nationwide search by law enforcement, after leaving the Columbia, Tennessee area on March 13, 2017. Cummins was returned to the Middle District of Tennessee on May 9, 2017, and was indicted by a federal grand jury in Nashville on May 18, 2017. He has been in federal custody while awaiting trial.
Cummins faces a mandatory minimum of 10 years in prison when he is sentenced by U.S. District Judge Aleta Trauger on September 24, 2018.
Assistant U.S. Attorneys Sara Beth Myers and Philip Wehby are prosecuting the case.
Clarksville Man Facing Federal Charges for Firing Weapon at Police OfficersRead the Press Release
NASHVILLE, Tenn. – April 5, 2018 – Levi West, 34, of Palmyra, Tennessee, was indicted yesterday by a federal grand jury in Nashville, Tennessee, and charged with being a convicted felon in possession of a firearm and possession of body armor, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
“This is yet another example of our policy to review every act of violence against our law enforcement officers,” said U.S. Attorney Cochran. “As in this case, the U.S. Attorney’s Office will bring federal charges where appropriate, for acts of violence committed against our men and women in blue.”
According to the indictment, on February 3, 2018, West was attempting to flee from a traffic stop by Clarksville Police officers and fired several shots at pursuing officers. West then fled into a wooded area and was later apprehended with the help of a police K-9. The indictment also alleges that officers recovered a .40 caliber Glock near West and recovered a ballistic vest and other military equipment in his vehicle. West was found to have a prior felony conviction and is prohibited from possessing a firearm. He is also prohibited from possessing body armor by virtue of a prior conviction of a crime of violence.
If convicted, West faces up to 10 years in prison on the firearms charge and up to three years in prison on the body armor charge and a $250,000 fine.
This case was investigated by the Clarksville, Tennessee Police Department and the Bureau of Alcohol, Tobacco, Firearms & explosives. The case is being prosecuted by Assistant U.S. Attorney Thomas Jaworski.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Federal Jury Finds Three Guilty in Fentanyl Distribution ConspiracyRead the Press Release
A federal jury in Nashville, Tennessee yesterday, returned guilty verdicts against three individuals on trial for their role in a deadly fentanyl distribution conspiracy, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. After an 8-day trial, the jury returned the guilty verdicts against Joedon Bradley, 32, of Nashville, Tennessee, Johnny Williams, 32, and Jonathan Barrett, 30, both of Murfreesboro, Tennessee. The jury found a fourth defendant, Jason Moss, not guilty on all counts.
“Nearly one third of drug overdose deaths in 2016 were the result of synthetic opioids, and drug traffickers can order them with a few clicks of a mouse," said Attorney General Sessions. "These drugs are so strong that a few grains of it can be fatal. Showing no regard for people's safety, the defendants mixed fentanyl into hundreds of pills, including some that killed at least one person and harmed countless others. I want to thank the DEA, the FDA, our fabulous state and local partners with the Tennessee Bureau of Investigation, Murfreesboro Police, and the Rutherford County Sheriff's Office, as well as Department of Justice attorneys Amanda Klopf and Brent Hannafan for their hard work on this case. Their efforts have led to justice being served."
“The jury’s verdicts in this case will now hold these individuals accountable for seeking to profit from the devastating opioid epidemic that continues to plague communities across our nation,” said U.S. Attorney Cochran. “Long prison sentences for these individuals will soon follow. I commend the jury for seriously shouldering their responsibility and I thank our law enforcement partners and our prosecutors for their untiring efforts in bringing justice on behalf of the people of this district”.
This case began on July 6, 2016, when law enforcement and medical personnel in the Murfreesboro, Tennessee area were overwhelmed by a series of overdoses caused by pills that appeared to be prescription Percocet pills. The pills were counterfeit and contained fentanyl, alprazolam, and acetaminophen, and had been pressed by Joedon Bradley and Eric Falkowksi.
According to testimony at trial, in May 2016, Eric Falkowski moved his pill operation to Madison, Tennessee, after law enforcement conducted a search of his home in Florida and seized his pill presses. Following the seizure, Falkowski obtained more fentanyl through the internet from China and purchased a new pill press through Amazon.com.
Beginning on July 4, 2016, Joedon Bradley and Eric Falkowski mixed together a combination of inert pill binder, alprazolam (“Xanax”), acetaminophen (sold as Tylenol), and fentanyl. Over the course of approximately 24 hours, Joedon Bradley helped press thousands of pills, using a pill mold that imprinted “A333” onto the ultimate product: a white, oblong pill that was almost identical to a prescription A333 Percocet pill.
On July 5, 2016, Johnny Williams obtained approximately 300 pills through the chain of distribution. Williams arranged to sell 150 of those pills for $1,050, to Jonathan Barrett through Jennifer Dogonski, a woman who acted as a broker.
According to evidence at trial, during the period of July 5-6, 2016, Jonathan Barrett, Johnny Williams and Joedon Bradley all distributed counterfeit Percocet pills containing fentanyl, with the markings “A333,” that were produced by Falkowski and Bradley. On July 6, 2016, Barrett learned that some individuals who had purchased the counterfeit pills had overdosed, and that one had possibly died, but he continued to distribute the counterfeit pills.
Law enforcement later searched a home in Madison, Tennessee, pursuant to a federal search warrant, and found, among other things, the pill press, multiple molds used for embedding text onto pills, including a mold for “A333,” a pill grinder, fentanyl, alprazolam and other drug manufacturing equipment. Testing later confirmed that the mold found at the house was the same mold used to make some of the pills seized from overdose victims during the investigation.
The jury found that the distribution of the counterfeit pills containing fentanyl caused one individual to die and seven other persons to experience serious bodily injuries.
The defendants face a mandatory minimum term of twenty years in prison, up to life and up to a $1,000,000.00 fine for each count charged when they are sentenced later this year.
Five other defendants indicted in this case have pleaded guilty and are awaiting sentencing. They include Eric Falkowski, 36, of Kissimmee, Florida; Preston Davis, 24, of Madison, Tennessee; Davi Valles, Jr., 26, and LaKrista Knowles, 26, both of Nashville, Tennessee; and Jennifer Dogonski, 34, of Murfreesboro, Tennessee.
This case was investigated by the Drug Enforcement Administration; the Tennessee Bureau of Investigation; the Murfreesboro Police Department; the Rutherford County Sherriff’s Office; and the Food and Drug Administration. The case was prosecuted by Assistant U.S. Attorneys Amanda J. Klopf and Brent A. Hannafan.
Regional Enforcer of Gangster Disciples Sentenced to 30 Years in Prison for RacketeeringRead the Press Release
A Gangster Disciples gang member was sentenced today to 360 months in prison and five years of supervised release for conspiring to participate in a racketeering enterprise.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U. S. Attorney D. Michael Dunavant of the Western District of Tennessee, Special Agent in Charge Michael T. Gavin of the FBI’s Memphis Division, and Acting Special Agent in Charge Jack Webb of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Memphis Field Division, made the announcement.
Henry Cooper, aka Big Hen, 37, of Memphis, Tennessee, was sentenced by U.S. District Judge John T. Fowlkes Jr. of the Western District of Tennessee. Cooper previously pleaded guilty to conspiracy to participate in racketeering activity.
The Gangster Disciples is a highly organized national gang active in more than 24 states. The scope of the Gangster Disciples’ crimes is wide-ranging and consistent throughout its national operation. The gang protects its power through threats, intimidation, and violence, including murder, attempted murder, assault, and obstruction of justice. The Gangster Disciples promotes its enterprise through member-only activities and provides financial and other support to members charged with or incarcerated for gang-related offenses or who are fugitives from law enforcement.
Members and associates of the Gangster Disciples are subject to a strict code of discipline and are routinely fined, beaten, and even murdered for failing to follow the gang’s rules. “Enforcers” within the enterprise ensure that members who violate the strict rules of the enterprise are appropriately punished.
According to statements made at his sentencing hearing, Cooper was a Gangster Disciple from 1992 until the time of his arrest in 2016. Furthermore, he was a high-ranking member of the Gangster Disciples, and at the time of indictment and arrest in this case served as the Regional Enforcer for the State of Tennessee. As the Regional Enforcer, Cooper was responsible for enforcement in Tennessee and six other states, including Arkansas, Illinois, Indiana, Kentucky, Ohio, and Wisconsin. One of Cooper’s responsibilities was to pass along information from the Chief Enforcer for the Gangster Disciples to enforcers in these states. Cooper also oversaw the enforcement of punishments, supervised the criminal activities of other members, issued orders to commit violent offenses against rivals and subordinates, and presided over Gangster Disciple meetings where criminal activity was discussed.
Cooper also participated directly in the activities of the gang, including acts involving murder, kidnapping, assault, witness intimidation, narcotics distribution, and weapons trafficking. Cooper’s participation in the criminal activities of the Gangster Disciples spanned approximately 25 years.
The FBI; ATF; the Memphis Multi-Agency Gang Unit; the Memphis Police Department; the Shelby County, Tennessee Sheriff’s Office; the Jackson Police Department Gang Enforcement Team; the Tennessee Bureau of Investigation; the Madison County, Tennessee Sheriff’s Department; the 28th District West Tennessee Drug Task Force; The Tipton County, Tennessee, Sheriff’s Office; the 26th Judicial District Attorney General’s Office; the 25th Judicial District Attorney General’s Office; the Atascosa County, Tennessee District Attorney’s Office; and the Shelby County District Attorney General’s Office investigated this case. Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Beth Boswell of the Western District of Tennessee and Samuel Stringfellow of the Northern District of Mississippi are prosecuting the case.
Nashville Man Responsible for Multiple Acts of Violent Crime in Public Housing Areas Pleads Guilty to Federal Firearms ChargesRead the Press Release
A Nashville, Tennessee man at the heart of violent crime activity in the J.C. Napier and Tony Sudekum Public Housing neighborhoods pleaded guilty yesterday in U.S. District Court to brandishing and discharging a firearm during a crime of violence, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
Aweis Haji-Mohamed, a/k/a Son Son, 28, was indicted in July 2016, and charged with a variety of federal firearms offenses relating to his involvement in an on-going violent crime wave, including armed robberies and murders. Haji-Mohamed was one of 36 individuals charged by July 2016, as a result of a targeted investigation by local and federal law enforcement, which began in March 2015 as a response to violent crime in certain Public Housing Developments.
Among other crimes, Haji-Mohamed was charged with and admitted to planning and committing an armed robbery of a street level cocaine dealer in the Tony Sudekum neighborhood in January 2015. During this robbery, Haji-Mohamed fired a .40 caliber semi-automatic pistol at the stepson of the man he was robbing, when the stepson stepped out of his apartment to find out what the commotion was.
Haji-Mohamed admitted that he also planned and robbed another cocaine dealer named Isaiah Starks, in the Tony Sudekum area in January 2015. During this robbery, Haji-Mohamed fired a shot into the ground from a .40 caliber handgun, as another individual held a gun on Starks and other occupants of his vehicle. In the early morning hours of February 9, 2015, Haji-Mohamed returned to the same area to find Starks and shot him in the head and killed him, using a pistol that he and another individual stole during the January 22, 2015 armed robbery of a Cricket Wireless Store, near the J.C. Napier neighborhood.
On January 24, 2015, Haji-Mohamed entered a house on Joseph St., in Nashville, armed with a .40 caliber semi-automatic handgun and looking for a Bloods gang member that he had been in an argument with earlier, as a result of Haji-Mohamed stealing a gun from another Bloods Gang member. The house was occupied by the gang member’s elderly grandmother and other persons, including several juveniles and a disabled child. Not finding the person he was looking for, Haji-Mohamed fired numerous rounds into the walls and floor before leaving the house.
Haji-Mohamed was eventually arrested on August 25, 2015, by Metropolitan Nashville Police S.W.A.T. officers, who found him hiding in the trunk of a vehicle in the garage of a woman’s house. At the time of his arrest, Haji-Mohamed was again in illegal possession of another firearm.
Haji-Mohamed will be sentenced by Chief U.S. District Judge Waverly Crenshaw, Jr., on July 6, 2018.
This case was investigated by the Metropolitan Nashville Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. The case is being prosecuted by Assistant U. S. Attorneys Sunny A.M. Koshy and Van S. Vincent.
Four Facing Federal Firearms Charges Following Recent Gun Store BurglariesRead the Press Release
Four Nashville men were indicted by a federal grand jury yesterday and charged with federal firearms offenses, announced U.S. Attorney Don Cochran of the Middle District of Tennessee. Three are charged with multiple firearms offenses, including conspiracy to steal and sell stolen firearms, and one is charged with possession of a stolen firearm.
Keith Swanson, aka “Lil Keith,” 22; James D. Hudgens, 26; Karshma F. Dardy, Jr., 20; all of Nashville, Tennessee, are charged with with conspiracy to steal, possess and sell stolen firearms, all of which were recently stolen during five separate gun store burglaries in the middle Tennessee and southern Kentucky area. Keshawn Martin, 19, also of Nashville, is charged in a separate indictment with possession of a stolen firearm. The indictment also charges Swanson, Hudgens and Dardy Jr. with possessing stolen firearms and unlawfully engaging in the business of selling firearms.
“We realize that the recent rash of gun store burglaries and the substantial number of stolen guns potentially getting into the wrong hands have placed our communities at significant risk,” said U.S. Attorney Cochran. “I commend the ATF and our local law enforcement partners for their swift action in identifying those responsible and recovering many of these stolen firearms. We will continue to aggressively to pursue others who are involved in these crimes as well as other gun store thefts not addressed here today.”
According to the charging documents, between January 10, 2018 and February 18, 2018, five gun stores were burglarized, resulting in the theft of approximately 125 firearms:
Whittaker Gun Store, located in Owensboro, Kentucky was burglarized on January 10, 2018, and approximately 63 firearms were stolen; Wheeler’s Fastway Gun and Pawn, located in Bowling Green, Kentucky, was burglarized on January 17, 2018, and approximately 26 firearms were stolen; Kwik Cash Pawn Shop, located in Smyrna, Tennessee, was burglarized on January 19, 2018, and eight firearms were stolen; King’s Firearms and More, located in Columbia, Tennessee, was burglarized on February 13, 2018, and approximately 24 firearms were stolen; and on February 18, 2018, approximately 12 firearms were stolen during a burglary at Guns and Gear, located in Paris, Tennessee.
According to the indictments and other court documents, beginning in January 2018, Keith Swanson and others began recruiting individuals, including juveniles, to participate in burglaries of area gun stores. During the investigation of these burglaries and as the thefts continued to occur, agents found several “for sale” listings of similar firearms on the website, “Armslist.com.” Undercover agents were subsequently able to purchase several of the stolen firearms from James Hudgens and Keith Swanson and identify Keith Swanson as the person Hudgens was in frequent contact with when negotiating the sale of the firearms. Hudgens and Swanson were charged in a criminal complaint on February 23, 2018, and taken into federal custody.
Court documents also reflect that on February 23, 2018, agents interviewed Karshma Dardy, Jr., who was in custody at the Sumner County Jail on car-jacking charges. Agents were able to develop enough information to implicate his participation in some of the gun store burglaries and Dardy Jr. was subsequently charged in a federal criminal complaint on February 28, 2018.
Keshawn Martin was also charged in a federal criminal complaint on March 9, 2018, after being a passenger in a vehicle that was pulled over by Metropolitan Nashville police officers the previous day. According to the complaint, Martin fled on foot before being captured by police. When he was apprehended, a pistol was protruding from Martin’s pants pocket. This pistol was later determined to have been stolen during the burglary from King’s Firearms on February 13, 2018.
“Reducing violent crime and removing dangerous criminals from our communities is ATF’s top priority,” said Acting ATF Special Agent in Charge Jack Webb. “We will continue our collaborative efforts with our law enforcement partners and the U.S. Attorney’s Office as we strive to provide a safe environment for the public.”
If convicted, the defendants face up to 5 years in prison for the conspiracy charge; up to 5 years in prison for selling firearms without a license; and up to 10 years in prison for possessing stolen firearms; and a $250,000 fine.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Tennessee Bureau of Investigation; Metropolitan Nashville Police Department; the 18th Judicial District Drug Task Force; the Hendersonville Police Department; the Gallatin Police Department; the Henry County Sheriff’s Office; the Rutherford County Sheriff’s Office; and the Davies County, Kentucky Sheriff’s Office. Assistant U.S. Attorney Siji Moore is prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law.
Antioch Man Facing Federal Charges for Making False Statement to Purchase FirearmRead the Press Release
Khari Milak Whitehead, 26, of Antioch, Tennessee, was charged on Friday in a criminal complaint with making a false statement in connection with the attempted purchase of a firearm, announced U.S. Attorney Don Cochran of the Middle District of Tennessee.
Whitehead was arrested Friday morning by ATF and FBI agents and is currently in federal custody. He will appear before a federal magistrate judge for a preliminary and detention hearing on March 21, 2018, at 11:00 a.m.
According to the criminal complaint, in early 2018, agents received numerous alarming notifications about Whitehead’s behavior and attempts to purchase a firearm from businesses in the middle Tennessee area, after a judicial officer had committed him to a mental institution for an evaluation.
The complaint outlines incidents recorded in reports by the Metropolitan Nashville Police Department (“MNPD”), where on July 5, 2013, Whitehead was arrested and charged with aggravated assault with a deadly weapon and possession of a prohibited weapon, after displaying a hand grenade in a crowded downtown nightclub. The grenade was later found to be inert. MNPD records also indicated that on November 7, 2017, police went to Whitehead’s residence, where a family member told them that Whitehead was “acting out of control and crazy.” The family member also told officers that Whitehead had converted to Islam and may have become radicalized and they feared that he might commit a mass murder. The following day, the family member told officers that Whitehead was watching ISIS propaganda videos on the internet and he stated, “White people are going to end up getting it.”
According to the criminal complaint, on December 7, 2017, a judicial officer in Rutherford County, Tennessee, ordered Whitehead to be committed for a mental evaluation, due to his behavior in researching ISIS and mass shootings and his attempt to purchase a sniper rifle and ammunition from Wal-Mart. The judicial official in Rutherford County signed another order committing Whitehead for an evaluation on December 19, 2017.
During the course of this investigation, the complaint alleges that Whitehead attempted to purchase a firearm from Wal-Mart on February 22, 2018. Whitehead was particularly interested in purchasing a semi-automatic rifle that had the capacity to hold a lot of ammunition. Whitehead submitted the ATF purchase application forms and indicated that he had never been committed to a mental institution. The purchase was denied based on a background check and denied a second time when Whitehead requested that the background check be resubmitted.
If convicted, Whitehead faces up to 10 years in prison and a $250,000 fine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the FBI; and Homeland Security Investigations. Assistant U.S. Attorney Ahmed Safeeullah is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
Former Nashville Judge Indicted on Additional Federal Obstruction and Theft ChargesRead the Press Release
A federal grand jury returned a superseding indictment against a former Nashville, Tennessee judge on obstruction and other charges stemming from a scheme in which he abused his official position for personal gain. Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran for the Middle District of Tennessee made the announcement.
Cason “Casey” Moreland, 60, of Nashville, Tennessee, was originally indicted in April 2017 on five counts of obstruction of justice. The superseding indictment returned yesterday adds five additional counts: two counts related to theft from a program receiving federal funds; two additional obstruction of justice counts relating to witness tampering and destruction of documents; and one count of committing an offense while on pretrial release. Moreland was arrested again on March 1, 2018, pursuant to a criminal complaint charging him with obstruction charges.
According to the superseding indictment, Moreland was a General Sessions Judge in Nashville and Davidson County, Tennessee and heard civil, criminal and traffic cases. Moreland also presided over the General Sessions Drug Treatment Court, which was a specialized court program designed to provide alternatives to incarceration for certain defendants. The work of the Drug Treatment Court was supported by a nonprofit entity called the Davidson County Drug Court Foundation (the “Drug Court Foundation”). Although Moreland did not have an official position with the Drug Court Foundation, he exercised de facto authority over the Drug Court Foundation’s operations. Beginning in Spring 2016, Moreland is alleged to have begun embezzling cash from the Drug Court Foundation. According to the indictment, Moreland directed the Drug Court Foundation’s director to deliver envelopes of the Drug Court Foundation’s cash to his office in exchange for allowing the director to increase the compensation that she received from the Drug Court Foundation.
According to the superseding indictment, Moreland became aware that he was a target of an investigation being conducted by the FBI and a federal grand jury in February 2017. The superseding indictment alleges that after learning of the investigation, Moreland took steps to obstruct and interfere with the investigation by directing the Drug Court Foundation’s director to destroy documents that would show the amount of cash that had been paid to the Foundation and ultimately stolen by Moreland. In February 2018, Moreland is alleged to have attempted to tamper with a witness by suggesting that she lie to the grand jury investigating his conduct.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
This case was investigated by the FBI and is being prosecuted by Trial Attorneys Lauren Bell and Andrew Laing of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee.
Former Nashville General Sessions Judge Indicted on Additional Federal Obstruction and Theft ChargesRead the Press Release
A federal grand jury yesterday, returned a superseding indictment against a former Nashville, Tennessee judge on obstruction and other charges stemming from a scheme in which he abused his official position for personal gain. U.S. Attorney Don Cochran for the Middle District of Tennessee and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division made the announcement.
Cason “Casey” Moreland, 60, of Nashville, Tennessee, was originally indicted in April 2017 on five counts of obstruction of justice. The superseding indictment adds five additional counts: two counts related to theft from a program receiving federal funds; two additional obstruction of justice counts relating to witness tampering and destruction of documents; and one count of committing an offense while on pretrial release. Moreland was arrested again on March 1, 2018, pursuant to a criminal complaint charging him with obstruction charges.
According to the superseding indictment, Moreland was a General Sessions Judge in Nashville and Davidson County, Tennessee and heard civil, criminal and traffic cases. Moreland also presided over the General Sessions Drug Treatment Court, which was a specialized court program designed to provide alternatives to incarceration for certain defendants. The work of the Drug Treatment Court was supported by a nonprofit entity called the Davidson County Drug Court Foundation (the “Drug Court Foundation”). Although Moreland did not have an official position with the Drug Court Foundation, he exercised de facto authority over the Drug Court Foundation’s operations. Beginning in Spring 2016, Moreland is alleged to have begun embezzling cash from the Drug Court Foundation. According to the indictment, Moreland directed the Drug Court Foundation’s director to deliver envelopes of the Drug Court Foundation’s cash to his office in exchange for allowing the director to increase the compensation that she received from the Drug Court Foundation.
According to the superseding indictment, Moreland became aware that he was a target of an investigation being conducted by the FBI and a federal grand jury in February 2017. The superseding indictment alleges that after learning of the investigation, Moreland took steps to obstruct and interfere with the investigation by directing the Drug Court Foundation’s director to destroy documents that would show the amount of cash that had been paid to the Foundation and ultimately stolen by Moreland. In February 2018, Moreland is alleged to have attempted to tamper with a witness by suggesting that she lie to the grand jury investigating his conduct.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee and Trial Attorneys Lauren Bell and Andrew Laing of the Criminal Division’s Public Integrity Section.
Former Spring Hill Police Officer Sentenced to Prison for Federal Civil Rights ViolationRead the Press Release
Former Spring Hill Police Officer Christopher Patrick Odom, 27, of Spring Hill, Tennessee, was sentenced on Friday in U.S. District Court to 12 months in prison, followed by one year of supervised release, for deprivation of rights under color of law, announced Don Cochran, U.S. Attorney for the Middle District of Tennessee.
Odom was indicted in July 2017 and pleaded guilty in October 2017 to engaging in unwanted sexual contact with a female motorist while on duty as a police officer.
U.S. District Judge Aleta A. Trauger sentenced Odom to the maximum penalty under the statute and noted that Odom’s behavior was outrageous and that he displayed a pattern of conduct that abused his position as a police officer.
According to court documents, Odom initiated a traffic stop on the female victim during the late evening hours of June 25, 2016. Upon approaching the victim’s car, Odom ordered her to write her name and phone number or date of birth on a piece of paper. Thereafter, Odom ordered the victim out of her car and brought her to the side of his patrol car. He then tried to kiss the victim and attempted put his hands down her pants. He then grabbed the victim’s hand and placed it on his penis. Odom also lied to the victim about his name before finally allowing her to leave the scene.
Odom previously pleaded guilty to state charges of sexual battery and official misconduct regarding the victim in this case and another female motorist in Maury County and served 78 days in jail. He is facing similar state charges in Williamson County.
This case was investigated by the Tennessee Bureau of Investigation in consultation with the Department of Justice Civil Rights Division. Assistant United States Attorneys Henry Leventis and Sara Beth Myers are prosecuting the case.
Four Additional Members and Associates of Clarksville, Tennessee Mongols Motorcycle Gang Charged with Crimes Related to Racketeering Conspiracy, Murder, Kidnapping and Drug TraffickingRead the Press Release
A 62-count, second-superseding indictment was returned by a federal grand jury in Nashville, Tennessee yesterday, charging 19 members and associates of the Clarksville, Tennessee chapter of the Mongols Motorcycle Gang with various federal crimes, including racketeering conspiracy, murder in aid of racketeering, attempted murder, kidnapping, robbery, large-scale drug trafficking and other crimes, announced U.S. Attorney Don Cochran of the Middle District of Tennessee and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
A superseding indictment returned in January 2018 charged 15 of the defendants with various crimes related to this investigation, including racketeering conspiracy murder, kidnapping, and large-scale drug trafficking. As of January 18, 2018, all of the defendants were in custody with the exception of Stephen Cole, a/k/a “Lurch.”
Yesterday’s indictment charges four additional members and associates of the Clarksville Mongols with the kidnapping and murder of Stephen Cole and additional crimes. The four additional defendants are:
- William Nelper, aka “Flip,” 49, of Trenton, Kentucky;
- William Boylston, aka “JC,” 27;
- Jason Meyerholz, aka “Country,” 43; and
- Christopher Wilson, 35, all of Clarksville, Tennessee.
The indictment details allegations of violent, criminal activity and drug trafficking in and around the Clarksville, Tennessee area beginning in or about March 2015 and continuing until the return of the indictment.
This indictment alleges that, among other crimes, on November 19, 2017, Boylston, Meyerholz and Wilson kidnapped Stephen Cole, a member of the Clarksville Mongols, at gunpoint, stripped him of his personal property, including his shoes, wallet, and cell phones. Boylston and Meyerholz then transported Cole to Nelper’s residence in Trenton, Kentucky, where they murdered him, disposed of his body and burned evidence of the crimes. All four defendants are charged with the kidnapping of Cole that resulted in his death. Additionally, Boylston, Meyerholz and Nelper are charged with murdering Stephen Cole in aid of racketeering. If convicted, all defendants face a minimum of life in prison and possibly the death penalty.
The indictment also charges Nelper, Boylston and Meyerholz with the racketeering conspiracy and charges Nelper with large-scale drug trafficking and money laundering. The indictment further charges Meyerholz with being a convicted felon in possession of a firearm.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Clarksville Police Department; the Tennessee Bureau of Investigation; and the Kentucky State Police. Assistant U.S. Attorney Katy Risinger of the Middle District of Tennessee and Trial Attorney Robert Tully of the DOJ Organized Crime and Gang Section are prosecuting the case.
An indictment is merely an accusation and all defendants are presumed innocent unless and until proven guilty in a court of law.
19 Members and Associates of Tennessee Mongols Motorcycle Gang Charged with Racketeering Conspiracy Including Murder and KidnappingRead the Press Release
A 62-count second-superseding indictment was returned by a federal grand jury in Nashville, Tennessee yesterday, charging 19 members and associates of the Clarksville, Tennessee chapter of the Mongols Motorcycle Gang with various federal crimes, including racketeering conspiracy, murder in aid of racketeering, attempted murder, kidnapping, robbery, large-scale drug trafficking, and other crimes, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran of the Middle District of Tennessee.
Yesterday’s indictment charges four additional members and associates of the Clarksville Mongols with kidnapping, murder, and additional crimes. Fifteen members and associates of the Clarksville Mongols were charged in January 2018. The four additional defendants are: William Nelper, aka Flip, 49, of Trenton, Kentucky; William Boylston, aka JC, 27; Jason Meyerholz, aka Country, 43; and Christopher Wilson, 35, all of Clarksville, Tennessee.
This indictment alleges that, among other crimes, on Nov. 19, 2017, Boylston, Meyerholz, and Wilson kidnapped Stephen Cole, a member of the Clarksville Mongols, at gunpoint, stripped him of his personal property, including his shoes, wallet and cell phones. Boylston and Meyerholz then transported Cole to Nelper’s residence in Trenton, where they murdered him, disposed of his body, and burned evidence of the crimes. All four defendants are charged with the kidnapping of Cole that resulted in his death.
The indictment also charges Nelper, Boylston, and Meyerholz with murdering Stephen Cole in aid of Racketeering, and charges Nelper with large-scale drug trafficking and money laundering.
An indictment is merely an accusation and all defendants are presumed innocent until proven guilty in a court of law.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Clarksville Police Department. Trial Attorney Robert Tully of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Katy Risinger of the Middle District of Tennessee are prosecuting the case.
Former CEO of Tennessee-based Telemarketing Company Pleads Guilty to Misrepresenting Health Insurance PlansRead the Press Release
The former owner and chief executive officer of a Nashville, Tennessee-based telemarketing company pleaded guilty this morning to overseeing a fraudulent scheme in which limited-benefit health plans were sold to consumers as traditional health insurance, and to violating a federal court order that in 2010 froze his assets and shut down the company, announced U.S. Attorney Don Cochran of the Middle District of Tennessee and Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.
Timothy Thomas, 55, of Brentwood, Tennessee, pleaded guilty to one count of mail fraud and one count of contempt before U.S. District Judge David Lawson, sitting by designation in the Middle District of Tennessee. He is scheduled to be sentenced by Judge Lawson on June 25, 2018. Thomas was charged in a 15-count indictment filed in October 2014.
According to admissions made as part of his plea, Thomas operated and controlled United Benefits of America (UBA) LLC, which was known at various times as United States Benefits (USB) and Health Care America. From at least 2007 to 2010, Thomas hired salespeople to sell over the phone so-called “association memberships” created by third-party companies such as International Association of Benefits and Consumer Driven Benefits of America. These memberships included bundled benefits, such as limited benefit health plans, prescription drug discount cards, accidental death and dismemberment benefits and lifestyle benefits, such as rental car discounts. Thomas targeted his sales to customers who had been denied traditional health insurance because of preexisting conditions, he admitted. The sales script used by Thomas attempted to portray the memberships as equal in quality to traditional health insurance, omitting the fact that limited benefit health plans left customers with the vast majority of the financial risk.
Thomas admitted that salespeople working for him made even more flagrant misrepresentations and omissions and used terms such as “deductibles” and “copays” to make customers believe they were buying traditional health insurance. Customer service employees and the Better Business Bureau routinely notified Thomas about customers complaining that they had been deceived into believing the plans were similar to traditional health insurance. Thomas oversaw a lax compliance program that was understaffed, with usually one employee monitoring up to 60 or 70 salespeople, and levied only occasional fines to salespersons who misrepresented or omitted key details of the plans. Despite knowing of the rampant misrepresentations and omissions, Thomas rarely fired salespeople for lying to customers, but routinely fired salespeople for low sales numbers, he admitted. When in 2009 a local news station, WSMV, ran a critical story on UBA featuring undercover footage of salespeople discussing misleading sales tactics, Thomas did not institute any meaningful changes in business practices. He merely changed the name of his company from UBA to USB and instructed a subordinate to sign a letter to the Better Business Bureau falsely claiming that the companies had nothing to do with each other.
When the Federal Trade Commission (FTC) filed a lawsuit against Thomas and his company in August 2010, a federal judge in the Middle District of Tennessee issued an order freezing Thomas’s assets and placing his company into receivership. Immediately after being informed of the court’s order, Thomas violated it by withdrawing more than $100,000 from a brokerage account and convincing a friend to deposit checks totaling $528,647, constituting proceeds of the scheme, into the friend’s bank account, he admitted.
As part of his plea agreement, Thomas agreed to forfeit $1.5 million, representing the amount he personally gained through the fraudulent scheme.
The case was investigated by the FBI, the U.S. Postal Inspection Service, the Department of Labor’s Office of Inspector General and the Department of Labor’s Employee Benefits Security Administration. The FTC and Tennessee Division of Insurance provided substantial assistance. Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee and Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section are prosecuting the case.