Middle District of Tennessee
Press releases recorded for this federal judicial district.
Murfreesboro Man Charged with Obstruction of Justice in Relation to Islamic Center VandalismRead the Press Release
Charles Dwight Stout, III, 19, of Murfreesboro, Tennessee, was indicted Wednesday by a federal grand jury and charged with obstruction of justice, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee. The charge relates to the ongoing investigation into the vandalism of the Islamic Center of Murfreesboro on July 10, 2017.
According to the indictment, on July 10, 2017, Stout and another man vandalized the Islamic Center by placing bacon around an entrance and spray painting profane references to Allah on the exterior of the building. Islam prohibits the consumption of pork.
Both men wore masks during the crime to conceal their identities, including a World-War-II-era Nazi gas mask. Stout also used a cell phone to take photos during the vandalism.
Members of the Islamic Center discovered the vandalism within hours of its occurrence, when they attended Morning Prayer and immediately reported it to law enforcement. Following the vandalism, Stout destroyed the clothing that he wore and permanently deleted the photographs that he took with his cell phone. The indictment alleges that Stout deleted photographic evidence.
- tragic events in Charlottesville, Virginia remind us of the devastating impact that acts of hate have on our communities and our neighbors,” said Acting U.S. Attorney Jack Smith. “When we are confronted with acts of hate it is incumbent upon every American to speak loudly and clearly that we will not tolerate such actions in America. Our reaction to such acts of hate speaks to who we are as individuals and as a society. Where those actions constitute federal crimes it is incumbent on federal authorities to vigorously investigate and prosecute the perpetrators of such heinous acts.
Our office will utilize all available means to protect the freedom to practice one’s religion without fear, intimidation or harassment. We will prosecute to the fullest extent of the law those who, because of hate and ignorance, seek to interfere with that freedom. In desecrating this house of worship, the defendant sought to undermine the religious freedoms of members of the Islamic Center of Murfreesboro, the very freedoms that this country was founded upon. The FBI immediately began investigating these cowardly acts of intimidation against Muslims throughout Tennessee, however, the defendant sought to cover up his crimes by destroying evidence. Our investigation is continuing but this indictment is the first step toward holding him accountable for these despicable acts.”
Stout surrendered to U.S. Marshals this morning and will be making an initial appearance before a U.S. Magistrate later this afternoon.
If convicted, Stout faces up to 20 years in prison. An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
The investigation by the Federal Bureau of Investigation and the Rutherford County Sheriff’s Office is continuing. Assistant United States Attorneys Henry C. Leventis and Sara Beth Myers are prosecuting the case.
Final Defendant Convicted of Stealing and Selling U.S. Army Equipment from Fort CampbellRead the Press Release
John Roberts, 27, of Clarksville, Tenn., was found guilty today by a federal jury of conspiracy to steal and sell U.S. Army property, 10 counts of wire fraud and two counts of violating the Arms Export Control Act, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
The jury returned a verdict of guilty on all counts, after a four-day trial in U.S. District Court. Roberts is the final defendant convicted in the conspiracy, after an indictment issued in October 2016 charged six U.S. Army soldiers and two civilian eBay sellers with various crimes.
Visiting U.S. District Judge Roger H. Lawson, Jr., of the Middle District of Georgia, remanded Roberts to the custody of the U.S. Marshal following the verdict.
According to the proof at trial, Roberts conspired with the soldiers, who stole U.S. Army equipment, often after hours, from the U.S. Army installation at Fort Campbell. Roberts then purchased the equipment from the soldiers, often times in dark parking lots and by cash only transactions. Roberts knew that some of the soldiers had financial problems or serious drug addictions. Roberts then resold this military grade equipment via eBay.
The U.S. Army equipment listed for sale on eBay included sniper telescopes and other sniper rifle accessories, parts for the M249 machine gun (including barrel assemblies, trigger groups, rail adapter kits, magazine buttstocks, mounts, and heat shields), sights for the M203 grenade launcher, “red dot” sights for the M2 rifle and M4 assault rifle, flight helmets, communications headsets, and medical supplies. Certain equipment sold on eBay was advertised as “Army Special Forces,” “USGI” (U.S. Government Issued), and “New in Package.”
Further proof at trial established that Roberts illegally exported certain restricted U.S. Army equipment, including night vision helmet mounts and that Roberts sold U.S. Army equipment to eBay customers around the world, including customers in Russia, China, Thailand, Japan, the Netherlands, Australia, India, Germany, and Mexico.
Six co-defendant’s have previously pleaded guilty and are awaiting sentencing:
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On December 21, 2016, former U.S. Army Specialist Dustin Nelson, 23 of Northville, New York pleaded guilty to conspiracy to steal and sell U.S. Army property;
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On February 8, 2016, former U.S. Army Specialist Kyle Heade, 30, formerly of Fort Campbell, Kentucky, pleaded guilty to conspiracy to steal and sell U.S. Army property;
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On March 30, 2016, former U.S. Army Sergeant Michael Barlow, 30, of Clarksville, Tenn., pleaded guilty to conspiracy to steal and sell U.S. Army property and theft of government property.
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On April 6, 2017, Cory Wilson, 43, of Gonzalez, Louisiana, pleaded guilty to conspiracy to steal and sell U.S. Army property, wire fraud, and violating the Arms Export Control Act.
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On April 26, 2017, Jonathan Wolford, 29, of Clarksville, Tenn., pleaded guilty to conspiracy to steal and sell U.S. Army property.
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On April 26, 2017, Alexander Hollibaugh, formerly of Fort Campbell, Kentucky, pleaded guilty to conspiracy to steal and sell U.S. Army property.
Roberts will be scheduled for sentencing later this year. All defendants face up to five years in prison and a fine of up to $250,000 on the conspiracy charge. Roberts and Wilson face up to 20 years for each count of wire fraud and violating the Arms Export Control Act. In addition, Barlow faces up to 10 years in prison on the theft charge. The defendants also face forfeiture of the proceeds of their crimes.
Acting U.S Attorney Jack Smith commended the work of the agents with Department of Homeland Security and U.S. Army Criminal Investigation Command, who investigated this case and Assistant United States Attorneys Thomas J. Jaworski and Courtney L. Coker, who prosecuted the case.
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Memphis Man Pleads Guilty to Assaulting Federal Law Enforcement Officers in NashvilleRead the Press Release
Anthony Allen, of Memphis, Tenn., pleaded guilty today in U.S. District Court, to assaulting a federal law enforcement officer and to federal firearms violations, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
“This defendant is facing more than a decade in federal prison - a sentence that reflects the seriousness of his actions’” said Acting U.S. Attorney Jack Smith. The U.S. Attorney’s Office will continue to take a zero tolerance approach to violence directed at our law enforcement officers. Serious consequences await those who choose to make the unwise decision to assault a law enforcement officer.”
According to court documents, on July 31, 2015, agents with the FBI and officers with the Metropolitan Nashville Police Department executed a federal search warrant at a house on Lanewood Court in Nashville. This search warrant was obtained in furtherance of an investigation into drug trafficking and firearms violations.
When agents knocked on the front door and announced their presence, Allen opened the front door, pointed a semiautomatic pistol through the doorway and discharged the firearm in the direction of agents, before closing the door. Minutes later, Allen complied with commands of law enforcement officers, exited the house and was taken into custody.
On August 5, 2015, a federal grand jury returned a 4-count indictment, charging Allen with assault of a federal law enforcement officer; discharging a firearm during and in relation to a crime of violence; possession of a firearm by a previously convicted felon; and possession of ammunition by a previously convicted felon. Allen pleaded guilty today to all counts of the indictment.
Allen faces a mandatory minimum sentence of 10 years in prison, on the discharging a firearm charge, which must be consecutive to any sentence imposed on the other charges, when he is sentenced later this year.
This case was investigated by the FBI; the Bureau of Alcohol, Tobacco Firearms & Explosives; and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Clay Lee is prosecuting the case.
Violent Crime Spree in J.C. Napier Neighborhood Results in 35 Year Prison Sentence for Nashville ManRead the Press Release
Calvin Starks, 23, of Nashville, Tenn., was sentenced today to 35 years in prison for series of federal crimes including using a firearm to commit a crime of violence resulting in death; conspiracy to commit Hobbs Act robbery and extortion; and conspiracy to tamper with a witness, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Starks pleaded guilty in June of this year and his crime spree included the shooting of two people in 2014, in and around the J.C. Napier neighborhood.
Starks and his cousin, Darryl Starks shot Joshua Woods on October 16, 2014, while in the J.C. Napier neighborhood. During this assault, they fired a total of 16 rounds. Woods survived the assault and after identifying the Starks’ as the shooters, he was threatened and bribed by the Starks’ mother, Ivy Starks, in an attempt to prevent him from testifying truthfully at subsequent court proceedings.
On November 26, 2014, Starks and Terrance Kimbrough planned to rob Brendon Leggs of drugs and money at a market on Lewis St., near the J.C. Napier neighborhood. During the robbery attempt, Leggs was shot multiple times as he tried to flee and later died from his wounds.
On December 3, 2014, Monte Watson was shot and killed by Terrance Kimbrough, near Lewis and Robertson St., in close proximity to the J.C. Napier neighborhood. Prior to this shooting, Calvin Starks and Kimbrough had looked for Watson in order to keep him from cooperating with law enforcement because they believed he may have seen them kill Brendon Leggs.
Ivy Starks pleaded guilty in July 2017 and was sentenced to 30 months in prison. Darryl Starks has also pleaded guilty to charges related to this case and is awaiting sentencing. Terrance Kimbrough is awaiting trial. He is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
Transportation Services Provider and Its Principal Agree to Settle False Claims Act AllegationsRead the Press Release
Nashville based Employment & Assessment Solutions, Inc. (“EASI”), and its principal, Chris Manus, have agreed to pay $550,000 to settle allegations that they violated the False Claims Act, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee. The alleged conduct involved the submission of false claims for payment to TennCare, Tennessee’s Medicaid Program, for the provision of transportation services to TennCare beneficiaries. Mr. Manus and EASI have each also agreed to a nine-year exclusion from Medicaid, Medicare, and all Federal Health Care programs.
“Enforcement of the False Claims Act is a priority of the Department of Justice and this Office,” said Acting U.S. Attorney Jack Smith. “The already overburdened Medicaid Program simply cannot withstand making payments for services that were never rendered. Anytime we discover violations of the False Claims Act, where corporations are seeking to enrich themselves through dishonest methods, we will seek the appropriate remedy for the offending corporation and its principals.”
The settlement resolves allegations by the United States and State of Tennessee that EASI and Manus, caused the submission of false claims to TennCare for transportation services which were never provided, including claims for patients who were actually incarcerated or hospitalized at the time of the purported transport. The alleged conduct occurred between January 2, 2010, and April 30, 2014.
Under the terms of the settlement, the United States will receive $302,775 and the State of Tennessee will receive $247,225.
"This company allegedly billed TennCare for ghost transports where the program was paying for an empty seat as if it contained a patient," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. "This is the most egregious type of False Claims Act violation - where no service was actually provided and the company got paid for doing nothing."
“The public rightfully expects funds to go to those patients who need these services,” said TBI Director Mark Gwyn. “We are fortunate to have a strong relationship with our federal and state law enforcement partners in continuing to pursue allegations of false claims.”
“Pursuing violations of the False Claims Act protects Tennessee tax dollars and sends a strong message to individuals attempting to take advantage of the system,” Attorney General Herbert H. Slatery III said. “Our office will continue to work with our state and federal partners to combat healthcare fraud.”
This matter was investigated by the Tennessee Bureau of Investigation, Department of Health and Human Services Office of Inspector General, Tennessee Attorney General’s Office, 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.
Tennessee Sheriff Sentenced to 33 Months in Prison for Federal Corruption and Civil Rights ChargesRead the Press Release
A former Tennessee Sheriff was sentenced today to 33 months in prison and two years of supervised release for corruption and civil rights offenses committed while he ran the Fentress County Jail in Jamestown, Tenn.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Jack Smith of the Middle District of Tennessee, Special Agent in Charge Michael Gavin of the FBI’s Memphis Division, Director Mark Gwyn of the Tennessee Bureau of Investigations (TBI), and District Attorney General Jared Effler of the Eighth Judicial District in Tennessee made the announcement.
Charles Scott Cravens, 47, of Jamestown, Tenn., was sentenced by U.S. District Judge Aleta A. Trauger. Cravens pleaded guilty on April 20, to three counts of honest services bribery and one count of deprivation of rights under color of law.
According to admissions made in connection with his guilty plea, Cravens used his position as Sheriff to solicit sex from female inmates incarcerated at the Fentress County Jail on multiple occasions between July 2016 and April 2017 in exchange for benefits that other inmates did not receive. Among those benefits, Cravens personally transported inmates outside the jail to visit relatives. Cravens also provided money on three occasions to the relatives of two inmates for deposit into the inmates’ commissary accounts. Cravens further allowed two inmates to exit the jail building to smoke cigarettes that he either provided personally or directed other jail staff to provide. Cravens additionally provided his personal cellular telephone number to the inmates with whom he engaged in sexual conduct so they could call him using the Fentress County Jail telephone system to leave recorded messages with personal requests. Between Aug. 24, 2016, and March 1, three inmates placed over 700 calls total to Cravens’ phone.
In connection with his guilty plea, Cravens also admitted to using unreasonable force as a law enforcement officer in November 2016, kicking a handcuffed male inmate in the backside and also punching the handcuffed inmate twice in the back of the head.
The FBI and TBI investigated the case. This case was prosecuted by Trial Attorneys Andrew Laing and Lauren Bell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Katy Risinger of the Middle District of Tennessee.
Former Fentress County Sheriff Sentenced to Federal PrisonRead the Press Release
Charles Cravens, 47, the former Sheriff of Fentress County, Tennessee, was sentenced today to 33 months in prison, followed by 2 years of supervised release, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division. Cravens was charged on April 20, 2017, with three counts of honest services fraud and one count of deprivation of rights under color of law. On the same day, he pleaded guilty to all charges and announced his resignation as the Fentress County Sheriff.
“Today, another public official was sentenced to prison for violating their sworn oath to uphold the law,” said Acting U.S. Attorney Jack Smith. “There are dire consequences when elected officials violate the public’s trust and place their own interest above that of their constituents.”
According to court documents, Cravens admitted that between July 2016 and February 2017, he used his position as Sheriff to provide extra benefits to female inmates in exchange for sexual relationships with each woman. These extra benefits included being personally transported by Cravens from the jail to visit relatives; allowing these inmates to go outside of the jail to smoke cigarettes; and Cravens providing money to relatives of the inmates for deposit into their jail commissary accounts.
Court documents also outline occurrences where Cravens drove female inmates from the jail and engaged in sex in a vacant trailer and in his vehicle. Cravens was also charged with kicking an inmate in the backside and placing him in a headlock while another officer handcuffed him and then striking the inmate in the back of the head, after he was handcuffed.
This case was investigated by the FBI; the Tennessee Bureau of Investigation and the District Attorney’s Office for the Eighth Judicial District. The case was prosecuted by Assistant United States Attorney Katy Risinger and DOJ Trial Attorneys Lauren Bell and Andrew Laing of the Department’s Public Integrity Section.
Hartsville Man Sentenced to 60 Years in Prison for Production of Child PornographyRead the Press Release
Richard A. Souders, 41, of Hartsville, Tennessee, was sentenced today by visiting United States District Court Judge Marvin Aspen, to 60 years in prison for production of child pornography, transportation of child pornography, and receipt of child pornography, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
Souders was charged in a 12-count indictment in October 2014, after an undercover investigation revealed that Souders was trading child pornography with like-minded individuals. Investigators discovered that during a week in mid-June 2014, Souders had been taking care of a 17-month old girl and took sexually explicit images of her on four occasions. He communicated online with others, who also had a sexual interest in children, talking about his molestation of this baby in his care and sending sexually exploitive images of her. Additionally, he had a collection of over 100 images and videos of other children being sexually abused.
“The sentence imposed by the Court reflects the horrendous actions of the defendant and society’s need to punish the offender and insure that no other innocent children will become a victim of his perverted sexual desires,” said Acting U.S. Attorney Jack Smith.
Souders pleaded guilty to these charges in December 2015, admitting that he had recorded the sexually explicit images of a toddler, transported those images to others online, and collected images and videos depicting the sexual exploitation of young children.
This matter was investigated by the Federal Bureau of Investigation and the Dickson County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney S. Carran Daughtrey.
Ashland City Woman Facing Federal Charges for Credit Card FraudRead the Press Release
Samantha Jean Thompson, 39, of Ashland City, Tenn. was arrested by FBI agents this morning, after being indicted by a federal grand jury last week on charges of bank fraud, wire fraud and identity theft, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
According to the indictment, between May 2014 and October 2016, Thompson was employed as the office manager and bookkeeper of Builder's Supply Source, Inc., a cabinetry supply company in Nashville, Tenn. The indictment alleges that Thompson used her position to make fraudulent charges to American Express credit cards issued to company employees, utilizing the mobile payment application Square, Inc. Thompson renamed her account with Square to closely resemble the name of a legitimate vendor and then used Square to process cash transfers to her personal bank account. During this execution of this scheme, Thompson made fraudulent transfers 289 times that totaled more than $500,000.
If convicted, Thompson faces up to 30 years in prison and a $1,000,000 fine.
This case was investigated by the Federal Bureau of Investigation and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Siji Moore is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
White County, Tennessee Business Owner Pleads Guilty in $43 Million Investment SchemeRead the Press Release
Jeffery Lynn Gentry, 40, of White County, Tenn., pleaded guilty today in U.S. District Court, to wire fraud and money laundering, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee. 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.
According to court documents, Gentry owned and operated Gentry Brothers Tractor Supply and Gentry Auto, both located in Sparta, Tenn. 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.
The Government also seeks a monetary judgement of at least $10 million to recover losses suffered by the victims in this case.
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. On August 26, 2017, the U.S. Marshals’ Service will liquidate these assets at auction in Sparta, Tenn. Details of the auction are available at www.txAuction.com.
Gentry faces up to 20 years in prison on each count and monetary fines when he is sentenced by Judge AletaTrauger later this year.
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 is handling the asset forfeiture.
Statement on the Review of the Investigations of the Jocques Clemmons MatterRead the Press Release
“The United States Attorney’s Office, in conjunction with the FBI and the Civil Rights Division of the Department of Justice, has concluded the review of the investigations by the Metropolitan Nashville Police Department and the Tennessee Bureau of Investigation into the Jocques Clemmons deadly force incident. We conclude that no further investigation or action is warranted.”
Acting U.S. Attorney Jack Smith Announces Depature from DOJRead the Press Release
Acting U.S. Attorney Jack Smith today, announced his departure from the Department of Justice, effective in September. Smith has been the Acing U.S. Attorney since David Rivera resigned in March of this year.
Smith has been a prosecutor with the Department of Justice for 16 years, having served as the head of the Public Integrity Section in D.C. for 5 years, prior to coming to Nashville in 2015 to serve as the First Assistant U.S. Attorney.
Though not looking to leave the department of Justice, Smith said he had been offered an incredible opportunity and after much consideration, he had decided to leave the DOJ.
“This was one of the most difficult professional decisions that I have ever been faced with,” said Smith. “I truly love representing the American people and seeking justice on their behalf. I will profoundly miss the close relationships I have developed with the exceptional public servants in our office, as well as the consummate professionals of our law enforcement community. While I am leaving the Department of Justice, I remain committed to our serving our community here in Nashville in other ways in the coming years.”
Smith will remain in the office until early September.
Bloods Gang Member Sentenced to 18 Years in Prison for Firearms and Drug CrimesRead the Press Release
Maurice Donnell Williams, aka Reecy, 23, of Nashville, Tenn., was sentenced yesterday in U.S. District Court, to 18 years in prison, for gun and drug crimes, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Williams was indicted by a federal grand jury in February 2017 and pleaded guilty in May of this year.
“This is an example of the importance of citizens being engaged in efforts to reduce crime,” said Acting U.S. Attorney Jack Smith. “Here, a citizen saw a concerning post on social media and reported it. The rapid response and investigation by law enforcement has now resulted in a dangerous criminal being removed from the community for a long period of time. Removing repeat offenders from our communities enhances our ability to combat street gangs and the violence often associated with illegal guns and drugs. I encourage our citizens to continue to assist law enforcement by reporting criminal activity when they become aware of it.”
According to court documents, Williams is a Bloods street gang member and had been convicted at the state level in 2012 for facilitation of aggravated robbery and in 2014 he was convicted of aggravated assault with a deadly weapon. Williams was sentenced to prison on these charges and was released in March 2016.
In October 2016, Williams was arrested by Metropolitan Nashville Police Officers after fleeing a traffic stop near the East Community Center and the Explore! Community School in East Nashville. While fleeing from police, Williams discarded a jacket which held a loaded Kel-Tec 9mm pistol, cocaine, marijuana and digital scales.
On December 28, 2016, while out on bond for the October arrest, Williams was again arrested in the Cayce Homes area, after Nashville Police Officers found him with a loaded Ruger pistol in his pants. Officers had been monitoring surveillance cameras in the area after a Facebook Live video was forwarded to the Mayor’s Office, which showed several youths with multiple firearms in the Cayce Homes area. After this arrest, Williams again posted bond and was released from custody.
A subsequent review of the Williams’ charges and criminal history, as part of a joint effort by local and federal law enforcement to reduce violent crime in public housing areas, resulted in the federal indictment and Williams was held in federal custody without bond.
“Williams’ prior arrests and convictions over the years obviously did not dissuade him from continued criminal activity, which put persons in the Cayce community at risk,” Chief Steve Anderson said. “I am grateful to the United States Attorney’s Office and the ATF for their valued partnership as we address violent felons who pose a danger to our citizens.”
In imposing the 18-year prison sentence, Chief U.S. District Judge Waverly Crenshaw noted the prior convictions for violent offenses and the danger Williams posed to the public, due to his history of repetitive armed offenses.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, & Explosives and the Metropolitan Nashville Police Department. The case was prosecuted by Assistant U.S. Attorney Sunny A.M. Koshy.
Nashville Return Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
Robert J. Spears, 35, a Nashville resident and tax return preparer, pleaded guilty today in U.S. District Court to one count of preparing a false tax return for his client and one count of filing his own false tax return, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
According to court documents, Spears worked as a salesperson and manager at a call-center. From 2010 through 2012, Spears prepared and filed materially false tax returns for his coworkers at the call-center by claiming bogus education credits, student-loan interest deductions, and child-care expenses. Without his clients’ knowledge, Spears diverted a substantial portion of the refunds issued in his clients’ names to bank accounts under his control. Spears did not report the diversions on his own personal income tax returns, which he was required to do, nor did he include any of the money he earned preparing returns on his own tax returns.
In total, Spears caused a tax loss of over $180,000.
Spears will be sentenced on December 13, 2017 and faces a maximum sentence of three years in prison on each false return count, 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 of the Middle District of Tennessee is prosecuting the case on behalf of the United States.
Franklin, Tennessee Man Facing Federal Charges Resulting from Hit & Run of Bicyclist on Natchez Trace ParkwayRead the Press Release
Marshall Neely, III, 58, of Franklin, Tenn., was indicted yesterday by a federal grand jury and charged with reckless aggravated assault; lying to a federal agent; and obstruction of justice, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
The federal indictment is a result of an incident on July 8, 2017, on the Natchez Trace Parkway, where a bicyclist was struck by a vehicle and injured. The driver of the vehicle, later identified as Marshall Neely, III, failed to stop and left the scene of the incident.
“Middle Tennessee is an area where bicycle traffic is abundant and growing daily,” said Acting U.S. Attorney Jack Smith. “Our roads are used both by recreational bicyclists as well as a growing number of citizens who use alternative methods of transportation to get to and from their workplaces. To achieve the sense of community that we all want for our area we must respect the rights of others in our community to live and move about the area. That means drivers of automobiles respecting the right of bicyclists to use our roads and bicyclists respecting the right of drivers to use our roads as well. The wanton recklessness exhibited by this defendant could easily have taken the life of the victim in this case. Such indifference to human life cannot be tolerated as it places all our bicycling citizens in grave danger. Whenever such blatant disregard for our citizen’s safety occurs on roadways under federal jurisdiction, you can expect that this U.S. Attorney’s Office will move swiftly to seek the appropriate avenue of justice.”
According to the indictment, on the morning of July 8, 2017, two individuals were riding bicycles along the Natchez Trace Parkway in Williamson County, Tennessee, when a black Volvo struck one of the individuals from behind. The impact caused the bicyclist to be thrown from his bicycle and he sustained injuries which required him to be transported by ambulance to the Williamson County Medical Center for treatment. Despite the impact, the driver of the Volvo did not slow down or stop but instead, continued on.
As the indictment alleges, the incident was captured on video by a helmet-mounted camera being used by the other bicyclist. This video was later posted to the internet and used to identify the owner of the vehicle as Marshall Neely, III.
Late in the afternoon on July 8, 2017, the indictment alleges that Neely’s son went to the Williamson County Sheriff’s Department and reported that the vehicle that struck the bicyclist belonged to his father and stated that he recognized the “Dartmouth, “Rice,” and “Boston” stickers on the back windshield, as depicted in the video. When law enforcement officers arrived at Neely’s home that evening, the indictment alleges that the Volvo was parked in the grass behind the garage and the “Dartmouth” and “Rice” stickers had been removed from the back windshield. Officers also noted that residue from a cleaning agent was visible on the right front of the vehicle where it had struck the bicyclist.
The indictment further alleges that shortly after observing the condition of the Volvo, officers found Neely in his home and unconscious on the floor. After being roused by law enforcement officers, Neely told the officers that while he was driving on the Parkway, earlier that morning, a bicyclist threw his bicycle at him. The indictment also alleges that Neely admitted to removing the stickers from his vehicle to prevent him from being identified.
Neely was arrested at his home earlier today by U.S. National Park Service Rangers and will appear before a U.S. Magistrate later today.
If convicted, Neely faces 2-12 years in prison on the reckless aggravated assault charge; up to 5 years in prison for lying to a federal agent; and up to 20 years in prison for obstructing justice.
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.
Former Spring Hill, Tennessee Woman Indicted for Wire Fraud SchemeRead the Press Release
Lori Desiere, 45, a former Spring Hill, Tennessee resident, was indicted yesterday by a federal grand jury in Nashville, Tenn., and charged with seven counts of wire fraud for executing a $120,000 fraud scheme, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
According to the indictment, between 2011-2013, Desiere stole over $120,000 from her former employer, Connect Hearing, a retail network of hearing care centers with locations across the country. The indictment alleges that Desiere used her position as the billing and account manager at the Brentwood, Tenn. billing and call center, to fraudulent process and divert customer refunds to bank accounts under her control.
Desiere faces up to 20 years in prison and a $250,000 fine on each count, and other monetary penalties.
- case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Ryan R. Raybould of the Middle District of Tennessee is prosecuting the case on behalf of the United States.
Former Spring Hill Police Officer Indicted for Federal Civil Rights ViolationRead the Press Release
Former Spring Hill Police Officer Christopher Patrick Odom, 27, of Spring Hill, Tennessee, was indicted Wednesday by a federal grand jury and charged with a criminal civil rights violation for engaging in unwanted sexual contact while on duty as a police officer, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
“Every police officer takes an oath to uphold the Constitution and when they circumvent this oath by violating the civil rights of individuals, which they are sworn to protect, the U.S. Attorney’s Office will hold them accountable”, said Acting U.S. Attorney Jack Smith.” “We will always strive to protect the honor and integrity of the many fine men and women of law enforcement who honor their oath and serve and protect our communities every day.”
According to the indictment, on June 25, 2016, while acting under color of law, Odom engaged in unwanted sexual contact with a victim by placing her hand on his penis, in violation of her constitutional right to be free from unwanted sexual contact by a person acting under color of law.
Odom was arrested yesterday afternoon by agents with the Tennessee Bureau of Investigation and will make an initial appearance before a U.S. Magistrate later today.
If convicted, Odom faces up to 12 months in prison and a $100,000 fine.
This case was investigated by the Tennessee Bureau of Investigation and in consultation with the Department of Justice Civil Rights Division. Assistant United States Attorneys Henry Leventis and Sara Beth Myers are prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Federal Fugitive Arrested in Cumberland County, Tennessee After 5 Years on the RunRead the Press Release
Ronald Eli Lewis, 72, of Sparta, Tenn., was arrested by U.S. Marshals and TBI agents this morning in Cumberland County, Tenn., announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Lewis and his cousin, Clifford Lewis, were convicted in March 2012 of conspiring to distribute more than 100 kilograms of marijuana throughout Middle Tennessee. The verdicts stem from the attempted delivery of nearly 900 pounds of marijuana to the Lewis’ family farm in Sparta, Tennessee on March 28, 2007. Agents with the Tennessee Bureau of Investigation had tracked the marijuana to the farm, where the defendants were arrested as they began to unload it. The jury heard evidence that the delivery was part of a larger scheme to ship thousands of pounds of marijuana via tractor trailer from Texas to Tennessee.
A few days after the trial began in March 2012, Ronald Lewis, who was free on bond, failed to show for the remainder of the trial. Lewis was subsequently convicted in absentia. His cousin, Clifford, was also convicted and later sentenced to prison. Two other co-defendants, Jimmy Clinton Smith, of Texas and Eliseo Gavin, of Oklahoma, had previously pleaded guilty and were later sentenced to prison.
“I join with the leadership of our law enforcement partners in commending the outstanding work of the U.S. Marshals’ Service and the TBI for the capture of Ronald Lewis,” said Acting U.S. Attorney Jack Smith. “This district is fortunate to have the dedicated professionals of these agencies. Because of their efforts and their careful planning and execution of this operation, a dangerous fugitive is back in custody and his freedom to scoff at the justice system has come to an abrupt end.”
The investigation into the drug distribution conspiracy was conducted by the DEA and the TBI. The fugitive investigation was conducted by the U.S. Marshals’ Joint Fugitive Task Force.
Toldeo, Ohio Man Convicted of Multi-State Heroin Distribution ConspiracyRead the Press Release
Ricky Thompson, aka Boom, 43, of Toledo, Ohio was convicted on Friday of conspiracy to distribute over 1 kilogram of heroin, cocaine and crack cocaine, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee. A federal jury in Nashville found Thompson guilty on all charges, after a two-week trial, including conspiracy to commit money laundering; possession of firearms in furtherance of drug trafficking; and conspiracy to commit witness intimidation.
Acting U.S. Attorney Jack Smith praised the law enforcement agencies and trial team in securing the guilty verdicts, “Thanks to the exemplary cooperation between law enforcement agencies spanning several states, we have now dismantled another organization responsible for pumping large quantities of addictive and deadly drugs into our communities. We will continue to expand our efforts to bring those to justice who feed the devastating heroin epidemic.”
During 2015-2016, Thompson and four other individuals were indicted in connection with this case on drug distribution charges.
Testimony at trial established that Thompson operated a multi-state drug-trafficking operation that was responsible for the distribution of narcotics in Arizona, Florida, Illinois, Kentucky, Louisiana, Ohio and Tennessee. Thompson’s heroin was responsible for multiple heroin-related overdoses in Tennessee, and at least one fatal overdose of a young woman in Ohio.
In March 2015 agents with the DEA Drug Task Force executed a series of search warrants in Nashville, Tennessee that resulted in multiple arrests and the seizure of approximately 300 grams of heroin and cocaine in a stash-house maintained by Thompson’s organization. Those arrested in 2015 included John Rupley, 35, of Toledo, Ohio; Derek Gilligan, 25, of Toledo, Ohio; Justin Clements, 30, of Nashville, Tennessee; and Tiffany Wright, 28, also of Nashville. All of these co-defendants have pleaded guilty and are awaiting sentencing.
Proof at trial showed that following the 2015 arrests, Derek Gilligan attempted to warn Thompson that authorities had identified him as the head of the operation. On March 2, 2016, agents with the DEA, FBI, and local Toledo law-enforcement executed federal search warrants at four locations operated by Thompson in Toledo, Ohio. Authorities seized 8 firearms, more than $200,000 of heroin, cocaine, crack-cocaine, marijuana and suboxone, 5 vehicles, and almost $10,000 cash.
Even after Thompson’s arrest and subsequent extradition to Nashville, he directed remaining members of his drug-trafficking organization in Toledo to intimidate and harass persons whom he discovered had been subpoenaed to testify before a federal grand jury in Nashville.
Thompson faces a mandatory minimum sentence of 25 years in prison, up to life, when he is sentenced in November 2017.
This case was investigated by the DEA; the FBI; the Rutherford County Sheriff’s Department; the Lebanon Police Department; the Wilson County Sheriff’s Department; the Nashville Metropolitan Police Department; the Toledo, Ohio Police Department; the Lucas County, Ohio Sheriff’s Department; the Ohio State Police; and the Oldham County, Kentucky, Police Department. The case was prosecuted by Assistant U.S. Attorneys Clay Lee and Phillip Wehby.
Pain Management Group Agrees to Pay $312,000 to Resolve False Claims Act and Overpayment AllegationsRead the Press Release
Pain Management Group P.C. (“PMG”), based in Antioch, Tenn., has agreed to pay $312,000 to settle federal and state False Claims Act and overpayment allegations, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
The settlement resolves allegations that PMG caused the submission of false claims to Medicare and TennCare for medically unnecessary urine drug tests. The settlement also resolves allegations that PMG caused the submission of false claims to Medicare and TennCare for non-Food & Drug Administration (“FDA”) approved pharmaceuticals Botox, Supartz, and Eufflexa, which PMG purchased from foreign-based suppliers. The United States contends that PMG administered the non-FDA approved pharmaceuticals to Medicare and TennCare patients and then billed Medicare and TennCare for the pharmaceuticals.
The United States’ investigation was initiated after extensive data analysis identified PMG as a potential outlier in the provision of urine drug testing to Medicare patients. Over the course of the investigation, the United States discovered information regarding PMG’s administration of non-FDA approved drugs to Medicare and TennCare patients. Once informed of the investigation, PMG cooperated and instituted remedial measures to address the United States’ allegations. The alleged conduct occurred during 2014-2015.
This matter was investigated by U.S. Department of Health and Human Services-Office of Inspector General and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Jason Ehrlinspiel represented the United States.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Nashville Man Sentenced to 35 Years in Prison for Production of Child PornographyRead the Press Release
Mark K. White, 64, of Nashville, Tennessee, was sentenced on Friday by United States District Court Aleta Trauger, to 35 years in prison for Production of Child Pornography and Possession of Child Pornography, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
White was charged in a criminal complaint in July 2013, after an investigation determined that while visiting a family in Lawrenceburg, Tenn., White had sexually molested and recorded sexually explicit images of young girls, between the ages of 4 and 7 years old. Subsequent examinations of White’s phone and computer revealed that he had collected over 400 images of child pornography, which included images of at least 18 victims known from other investigations. Investigators also found evidence that revealed White’s sexual abuse of young girls dated back to 2011.
White pleaded guilty to these charges in January 2016, admitting that he had recorded the sexually explicit images of the young girls.
This matter was investigated by the Lawrenceburg Police Department, the Tennessee Bureau of Investigation, and the Federal Bureau of Investigation. The United States was represented by Assistant U.S. Attorney S. Carran Daughtrey.
White County, Tennessee Business Owner Charged in $43 Million Investment SchemeRead the Press Release
Jeffery Lynn Gentry, 40, of White County, Tenn., was charged in a criminal information filed on July 5, 2017, with wire fraud and money laundering, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Gentry owned and operated Gentry Brothers Tractor Supply and Gentry Auto, both located in Sparta, Tenn.
The charging document contains the following allegations: 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 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.
The charging document also contains a forfeiture allegation which seeks a monetary judgement of at least $10 million.
If convicted, Gentry faces up to 20 years in prison on each count and monetary fines.
This case was investigated by the FBI, the IRS-Criminal Investigation; and the U.S. Marshal’s Office. The case is being prosecuted by Assistant U.S. Attorney Kathryn Risinger. Assistant U.S. Attorney Deb Phillips is handling the asset forfeiture.
The charges brought by this information are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
Nashville Man Pleads Guilty to Sending Internet Threat Targeting Law Enforcement OfficersRead the Press Release
Robert Ellis Waddey, 22, of Nashville, Tenn., pleaded guilty on Friday to communicating a threat by interstate commerce, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee. Waddey was indicted by a federal grand jury in February of this year and was also charged with being an unlawful user of a controlled substance in possession of firearms.
“The U.S. Attorney’s Office will continue to review every threat and act of violence against our law enforcement officers,” said Acting U.S. Attorney Jack Smith. “If the review finds that federal law was violated, you should expect to see federal charges brought against those responsible.”
According to court documents, in September 2015, Waddey posted a photograph on Instagram which depicted a handgun pointed at a Tennessee State Trooper vehicle. The posting was captioned, “F*** them non attentive hoes” and a comment read, “Gona die lookin at his computer.” Photographs subsequently found on Waddey’s phone also depicted a uniformed police officer bleeding heavily from the head and captioned “only a dead cop is a good cop.” Another photograph depicts a uniformed police officer who appears to have been shot multiple times in the back and laying in the street, while yet another photograph depicts a screen shot of a video showing another uniformed police officer who appears to have been shot and laying on the ground bleeding. This photo is captioned, “ON TAPE: OFFICER SHOT IN THE HEAD D….”
Waddey admitted during the plea hearing, that on September 13, 2015, while sitting in his vehicle at a traffic light in South Nashville, he took a photograph of a Glock pistol in his hand, positioned in such a way where the pistol would be viewed in the same frame as a police car on a traffic stop in the distance with the blue lights activated. Waddey posted with the photograph, a slang threat to law enforcement. Various text messages sent by Waddey also conveyed threats toward law enforcement and indicate the pleasure he took in the number of targeted cop killings.
Waddey also admitted during the plea hearing that his subjective intent in making the communications was to threaten law enforcement.
According to the terms of the plea agreement, Waddey will also forfeit 13 handguns, four assault rifles and a shotgun.
Waddey faces up to five years in prison and up to a $250,000 fine when he is sentenced on October 16, 2017.
This case was investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Metropolitan Nashville Police Department. Assistant U. S. Attorney Courtney Coker is prosecuting the case.
Kansas Man Sentenced to 50 Years in Prison for Production of Child PornographyRead the Press Release
Ryan James Day, 32, of Ellis, Kansas, and formerly of Clarksville, Tenn., was sentenced on Monday, by United States District Court Judge Aleta Trauger, to 50 years in prison for production of child pornography, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
The investigation began in June 2015 when Day communicated with an undercover law enforcement officer who was posing online as someone interested in child pornography. During their online conversation, Day told the undercover detective that he was sexually active with a minor and sent pornographic photos of the victim to the detective. Day also told the detective that he wanted to have sex with a minor whom he believed to be the detective’s young child and that he was attempting to persuade yet another minor female to have sex with him.
The FBI and local authorities determined the location of the device from which the images were being sent and responded to Day’s home in Kansas within hours of his transmission of child pornography. An examination of Day’s phone and personal computer revealed hundreds of pornographic images of children, including the images of the victim that were sent to the detective.
Day was indicted on four counts of production of child pornography in December 2015 and pleaded guilty to all counts on February 22, 2017. According to the charging document and other court filings, Day began sexually abusing the victim in 2009, when he lived in Clarksville and the victim was approximately 5 years old. Over a period of several years, Day sexually abused the victim on numerous occasions and photographed the abuse. After moving to Kansas, Day distributed the images online in an effort to obtain images of other minors being sexually abused.
This case was investigated by the Federal Bureau of Investigation, the District of Columbia Metropolitan Police Department and the Ellis County, Kansas Sheriff’s Office and is being prosecuted by Assistant U.S. Attorneys Henry C. Leventis and Rascoe Dean.
Former Employee of Brentwood-Based Human Resources Company Pleads Guilty to Wire FraudRead the Press Release
Kristen Petersen Morrison, 44, pleaded guilty today to four counts of wire fraud, after being charged with defrauding customers of her former employer, Century II, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Morrison was indicted by a federal grand jury on November 30, 2016.
According to the charging document and plea agreement, Century II handles payroll and other human resource needs for small businesses in middle Tennessee. Morrison worked as a payroll specialist with Century II and set up payroll disbursements for Century II customers, including Absolute Wireless, a Nashville-based cell phone service retailer.
From March 2014 to May 2016, Morrison added several former and nonexistent employees to the Absolute Wireless payroll without the company’s knowledge or consent. She also arranged for payments to these fictitious employees to be made to check cards that Morrison set up and controlled. Morrison then used the check cards to pay for her personal expenses. During the two-year scheme, Morrison stole approximately $300,000 from Absolute Wireless.
Wire fraud carries a maximum penalty of up to 20 years in prison and a $250,000 fine. Morrison will be sentenced by United States District Judge Aleta Trauger on October 6, 2017. Her sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Henry C. Leventis.
Eleven Alleged Members of Gangster Disciples Indicted in Racketeering and Drug ConspiracyRead the Press Release
A federal grand jury in Nashville, Tenn., yesterday returned a 40-count indictment charging 11 members of the Gangster Disciples gang with conspiring to participate in a racketeering enterprise that included multiple murders, including the murder of a witness; a drug distribution conspiracy; and multiple other crimes of violence in aid of racketeering as well as firearms and drug crimes. Earlier today, federal, state and local law enforcement officers orchestrated a coordinated takedown resulting in numerous arrests in Tennessee, Kentucky and Florida. Attorney General Jeff Sessions of the Justice Department; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney Jack Smith of the Middle District of Tennessee; Special Agent in Charge Steve Gerido of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and Director Mark Gwyn of the Tennessee Bureau of Investigation (TBI) made the announcement.
“The Gangster Disciples have been a menace to law-abiding Americans for more than 40 years and remain a threat in 35 states today,” said Attorney General Sessions. “This gang sells dangerous drugs and has taken innocent lives. The Department of Justice is making combating violent gangs like this one a high priority, and today we take another major step toward taking them off our streets for good. I want to thank the dedicated federal prosecutors who brought this case, and I especially want to thank the 10 law enforcement agencies from the state, local, and federal levels who took part in this investigation.”
“The charges in this case encompass conduct dating back over a decade,” said Acting U.S. Attorney Smith. “In bringing these charges, we have sought to hold accountable those who have played a central role in gang violence and whose criminal activity has too often disrupted the peace and harmony of our communities. Our work is not done and this prosecution is the next step in what will be a sustained effort to dismantle the Gangster Disciples organization in Middle Tennessee.”
“ATF’s priority of reducing firearms violence is evident with the recent enforcement operation,” said Special Agent in Charge Gerido. “The collective resources of our law enforcement partners, combined with support from the community, results in a safer environment for the public.”
“Having the support and cooperation of our partner local, state and federal agencies is critical to ensuring that we work together to protect Tennesseans from violent individuals such as these,” said Director Gwyn. “Gang members who commit such violent acts, as alleged here, have no place in our communities, and we will continue to work together to bring such bad actors to justice.”
According to the indictment, the defendants conspired to participate in the affairs of the Gangster Disciples, a violent criminal gang founded in Chicago and now active in numerous states across the U.S., including Tennessee. The indictment alleges that the Gangster Disciples are highly organized, operating under the national leadership of a corporate board-style group, who is responsible for decisions for the gang at a national level, and the state and regional leadership of “governors” and other subordinate gang members, who are responsible for the gang’s activities in specific geographic regions. As set forth in the indictment, in middle Tennessee, the Gangster Disciples generally recruited members from a local neighborhood or from within jail or prison.
According to the allegations, the defendants conspired to enrich, promote and enhance the gang; to preserve and protect its power, territory, and operations through acts and threats of violence, including murder, assault, intimidation of witnesses and victims; and to provide support to gang members charged with, or incarcerated for, gang-related or other criminal activities.
For example, among other crimes, the indictment alleges that on Jan. 6, 2012, Gangster Disciples member Brandon Durell Hardison, 31, of Madison, Tenn., murdered a Gangster Disciples associate. That same date, Hardison also murdered the associate’s girlfriend, who was a witness to the murder, then enlisted other Gangster Disciples members to dispose of the murder weapon, according to the allegations. The indictment alleges that Hardison committed these murders for the purpose of maintaining and increasing his position in the Gangster Disciples.
Gangster Disciples members were also responsible for attacks on rival gangs, according to the allegations. For example, the indictment alleges that on Nov. 3, 2012, Hardison; Maurice Duncan Burks, 31, of Hopkinsville, Tenn.; Marcus Termaine Darden, 38, of Guthrie, Ky.; and Xavier Raphael Jenkins, 29, of Clarksville, Tenn., plotted to assault members of the Bloods gang. Thereafter, according to the allegations, Hardison and Jenkins assaulted, and Burks shot and killed, a member of the Bloods gang inside a nightclub in Clarksville, Tenn.
Additionally, the indictment alleges that in August 2014, Lamar Andre Warfield, 28, of Guthrie, Ky.; Derrick Lamar Kilgore, 32, of Clarksville, Tenn.; and Lawrence Mitchell, 33, of Clarksville, Tenn. conspired to murder members of the rival Vice Lords gang, resulting in the shooting of four individuals in Clarksville, Tenn. The indictment also alleges that in a separate crime in December 2014, DeCarlos Titington, 41, of Clarksville, Tenn., shot at and attempted to murder two Vice Lords gang members. Both Vice Lords shootings were for the purpose of maintaining and increasing the defendants’ position in the Gangster Disciples, according to the allegations.
The indictment also contains forfeiture allegations. According to the allegations, the government seeks to forfeit any proceeds and property, including but not limited to a money judgment, representing all or part of the gross proceeds obtained as a result of the alleged crimes.
The indictment names the following defendants in the RICO conspiracy: Darden; Burks, Hardison; Warfield; Kilgore; Titington; Mitchell; Elance Justin Lucas, 27, of Guthrie, Ky.; and Lorenzo Cortez Brown, 31, of Murfreesboro, Tenn.
The indictment also names Darden, Burks, Warfield, Kilgore, Lucas, Titington, Mitchell, Brown, as well as Rex Andrew Whitlock, 32, of Clarksville, Tenn., in the drug distribution conspiracy.
In addition to the RICO and drug distribution conspiracies, the indictment charges Hardison with two counts of murder in aid of racketeering, related firearms crimes, and witness tampering, and Burks with murder in aid of racketeering and related firearms crimes. Warfield, Kilgore, Mitchell and Titington are charged with conspiracy to commit murder, attempted murder and assault in aid of racketeering, and related firearms charges, which stem from shootings of rival gang members. Darden, Kilgore, Brown and Titington are also charged with drug distribution offenses.
The charges and allegations in the indictment are merely accusations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
This investigation was conducted by the ATF; the Drug Enforcement Administration; the TBI; the Montgomery County Sheriff’s Office; the Clarksville Police Department; the Rutherford County Sheriff’s Office; the Murfreesboro Police Department; the Gallatin Police Department; the Kentucky State Police; the 19th Judicial District Drug Task Force; and the Hopkinsville, Kentucky Police Department. Trial Attorney Ivana Nizich of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Ben Schrader are prosecuting the case.
Eleven Alleged Members of the Gangster Disciples Indicted in Racketeering and Drug ConspiracyRead the Press Release
A federal grand jury in Nashville, Tenn., returned a 40-count indictment yesterday, charging 11 members of the Gangster Disciples with conspiring to participate in a racketeering enterprise that included multiple murders, including the murder of a witness; a drug distribution conspiracy; and multiple other crimes of violence in aid of racketeering as well as firearms and drug crimes, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Joining the U.S. Attorney at a Noon news conference, were David Rybicki, Deputy Assistant Attorney General for the Department of Justice Criminal Division; David Jaffe, Acting Chief of the Organized Crime and Gang Section of the Department of Justice Criminal Division; Steven Gerido, Special Agent in Charge of the ATF Nashville Field Division; Mark Gwyn, Director of the Tennessee Bureau of Investigation; Clarksville, Tenn. Police Chief Al Ansley; Rutherford County, Tenn. Sheriff, Mike Fitzhugh; Gallatin Police Lieutenant Ricky Troup; and Sgt. Kevin Warrell of the Kentucky State Police.
Earlier today, federal, state and local law enforcement officers orchestrated a coordinated takedown resulting in numerous arrests in Tennessee, Kentucky and Florida and the execution of several search warrants in the Clarksville and Murfreesboro areas of Tennessee, where many of the defendants reside.
“The Gangster Disciples have been a menace to law-abiding Americans for more than 40 years and remain a threat in 35 states today,” said Attorney General Sessions. “This gang sells dangerous drugs and has taken innocent lives. The Department of Justice is making combating violent gangs like this one a high priority, and today we take another major step toward taking them off our streets for good. I want to thank the dedicated federal prosecutors who brought this case, and I especially want to thank the 10 law enforcement agencies from the state, local, and federal levels who took part in this investigation.”
“The charges in this case encompass conduct dating back over a decade,” said Acting U.S. Attorney Jack Smith. “In bringing these charges, we have sought to hold accountable those who have played a central role in gang violence and whose criminal activity has too often disrupted the peace and harmony of these two communities. Our work is not done and this prosecution is the next step in what will be a sustained effort to dismantle the Gangster Disciples organization in Middle Tennessee.”
“ATFs priority of reducing firearms violence is evident with the recent enforcement operation,” said ATF Special Agent in Charge Steve Gerido. “The collective resources of our law enforcement partners, combined with the community support results in a safer environment for the public.”
“Having the support and cooperation of our partner local, state and federal agencies is critical in ensuring that we can work together to protect Tennesseans from violent individuals such as these,” said TBI Director Mark Gwyn. “Gang members who commit such violent acts, as alleged here, have no place in our communities and we will continue to work together to bring such bad actors to justice.”
The indictment sets forth a series of on-going allegations of gang related activities including organizational meetings and crime planning activities, violent assaults, murder, drug distribution and firearms offenses from 2005 until present.
According to the indictment, the defendants conspired to participate in the affairs of the Gangster Disciples, a violent criminal gang founded in Chicago and now active in numerous states across the United States, including Tennessee. The indictment alleges that the Gangster Disciples are highly organized, operating under the national leadership of a corporate board-style group, who is responsible for decisions for the gang at a national level, and the state and regional leadership of “governors” and other subordinate gang members, who are responsible for the gang’s activities in specific geographic regions. As set forth in the indictment, in middle Tennessee, the Gangster Disciples generally recruited members from a local neighborhood or from within jail or prison.
According to the allegations, the defendants conspired to enrich, promote, and enhance the gang; to preserve and protect its power, territory, and operations through acts and threats of violence, including murder, assault, intimidation of witnesses and victims; and to provide support to gang members charged with, or incarcerated for, gang-related or other criminal activities.
For example, among other crimes, the indictment alleges that on Jan. 6, 2012, Gangster Disciples member Brandon Durell Hardison, 31, of Madison, Tenn., murdered a Gangster Disciples associate. That same date, Hardison also murdered the associate’s girlfriend, who was a witness to the murder, then enlisted other Gangster Disciples members to dispose of the murder weapon, according to the allegations. The indictment alleges that Hardison committed these murders for the purpose of maintaining and increasing his position in the Gangster Disciples.
Gangster Disciples members were also responsible for attacks on rival gangs, according to the allegations. For example, the indictment alleges that on Nov. 3, 2012, Hardison, Maurice Duncan Burks, 31, of Hopkinsville, Tenn.; Marcus Termaine Darden, 38, of Guthrie, Ky.; and Xavier Raphael Jenkins, 29, of Clarksville, Tenn., plotted to assault members of the Bloods gang. Thereafter, according to the allegations, Hardison and Jenkins assaulted, and Burks shot and killed, a member of the Bloods gang inside a nightclub in Clarksville, Tenn.
Additionally, the indictment alleges that in August 2014, Lamar Andre Warfield, 28, of Guthrie, Ky.; Derrick Lamar Kilgore, 32, of Clarksville, Tenn.; and Lawrence Mitchell, 33, of Clarksville, Tenn.; conspired to murder members of the rival Vice Lords gang resulting in the shooting of four individuals in Clarksville, Tenn. The indictment also alleges that in a separate crime in December 2014, DeCarlos Titington, 41, of Clarksville, Tenn., shot at and attempted to murder two Vice Lords gang members. Both Vice Lords shootings were for the purpose of maintaining and increasing the defendants’ position in the Gangster Disciples, according to the allegations.
The indictment also names Darden, Burks, Warfield, Kilgore, Lucas, Titington, Mitchell, Brown, as well as Rex Andrew Whitlock, 32, of Clarksville, Tenn., in the drug distribution conspiracy.
In addition to the RICO and drug distribution conspiracies, the indictment charges Hardison with two counts of murder in aid of racketeering, related firearms crimes, and witness tampering, and Burks with murder in aid of racketeering and related firearms crimes. Warfield, Kilgore, Mitchell and Titington are charged with conspiracy to commit murder, attempted murder and assault in aid of racketeering, and related firearms charges, which stem from shootings of rival gang members. Darden, Kilgore, Brown and Titington are also charged with drug distribution offenses.
The indictment also contains forfeiture allegations. The government seeks to forfeit any proceeds and property, including but not limited to a money judgment, representing all or part of the gross proceeds obtained as a result of the alleged crimes.
If convicted, these defendants face maximum sentences ranging from 10 years to life in prison. Burks and Hardison potentially face 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; the 19th Judicial District Drug Task Force; and the Hopkinsville Kentucky Police Department. Assistant United States Attorney Ben Schrader and Trial Attorney Ivana Nizich of the Criminal Division’s Organized Crime and Gang Section 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.
Durable Medical Equipment Manufacturer Agrees to Pay $2.715 Million to Resolve False Claims AllegationsRead the Press Release
Innovative Therapies, Inc. (“ITI”) and its ultimate parent company Cardinal Health, Inc. (“Cardinal”) have agreed to pay $2.715 million to settle False Claims Act allegations, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee. The settlement concerns conduct initiated by ITI before being purchased by Cardinal in August 2014 and resolves a qui tam action filed by a whistleblower in May 2015.
“This Office remains committed to enforcement of the False Claims Act,” said Acting United States Attorney Jack Smith. “Fighting fraud and protecting the public fisc are priorities of the Department of Justice, and we will continue to work with our law enforcement partners to vigorously investigate alleged FCA violations. We recognize that through the acquisition of ITI, Cardinal inherited the issues that gave rise to the FCA conduct and ultimately took the necessary steps to resolve this case.”
The settlement resolves allegations that the companies caused the submission of false claims to Medicare through their marketing of certain negative pressure wound treatment (“NPWT”) devices as durable medical equipment (“DME”). Specifically, Relator’s complaint alleged that ITI marketed certain models of its Quantum line of NPWT devices – later renamed the PRO series following Cardinal’s acquisition of the ITI, as DME, despite knowing that these devices did not have the expected life of a durable device. These devices were pre-programmed with a specific number of therapy hours well below the expected life of a DME device, and were never used again once those hours expired. This marketing caused DME suppliers to bill for the devices as DME when they did not meet the standards for a durable device, resulting in the submission of false claims.
“This case is a good example of how the False Claims Act protects taxpayer dollars,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “The money recovered will be transferred back to federal health care programs where it can be used to provide medical services for the elderly and disabled.”
The United States’ investigation began with a qui tam complaint filed by a former ITI employee. The qui tam provisions of the False Claims Act allow for whistleblowers, or relators, to file suit for violations of the act on behalf of the United States. A relator is entitled to a percentage of any amount recovered by the United States as a result of the information provided. Relator in this case will receive $488,700.
This matter was investigated by the Department of Justice, the United States Attorney’s Office for the Middle District of Tennessee, and the Department of Health and Human Services Office of Inspector General. The United States was represented by DOJ Trial Lawyer Michael Shaheen and Assistant U.S. Attorney Christopher C. Sabis.
The case is docketed as United States ex rel. Grogan v. Innovative Therapies, Inc., et al., No. 3:15-cv-0568 (M.D. Tenn.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Nashville Man Indicted for Illegally Importing and Distributing Molly from ChinaRead the Press Release
Terrence Deon Reames, aka Santos, 39, of Nashville, Tenn., formerly of Riverdale, Georgia, was indicted by a federal grand jury on May 24, 2017, on charges of operating a continuing criminal enterprise relating to the illegal importation and distribution of methylone and ethylone (Molly) announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
A four-count indictment was unsealed today and outlines the operation of the criminal enterprise from May 2011 through August 2014, during which time Reames obtained or attempted to obtain over 100 kilograms of Molly and conspired with at least five other persons to distribute the drug in the Nashville area. The government also seeks to forfeit at least $1 million, which represents the value of the proceeds derived from and the property used to facilitate the illegal activity.
According to the indictment, by May 2011 Reames had obtained a source of supply known as “Alice” in China for methylone and ethylone, commonly known as “Molly.” Reames met with others in Nashville and explained the profit potential of selling Molly and recruited others to obtain the drug through him. Reames became a substantial distributor in the Nashville area as Molly became more widely available.
The indictment outlines the methods used by Reames to communicate with Alice, including encrypted communications, when discussing price, quantity, quality of the controlled substance and shipment and payment methods. Reames provided Alice with the names, including the name of a dead relative and addresses to ship to through the U.S. Postal Service and international shipping companies. The controlled substances were subsequently shipped to addresses in and around Nashville, Tenn. and Riverdale, Georgia. Reames also arranged for the transfer of funds by others, totaling approximately $300,000 to Chinese bank accounts and wire transfers to individuals in China. He also provided cash to these persons to use for the transactions.
The indictment also alleges that Reames, a previously convicted felon, unlawfully possessed and transferred firearms to safeguard the criminal enterprise and its assets, such as drugs, cash, firearms and other items, including jewelry obtained through the criminal enterprise which he claimed was valued at $150,000.
Reames was arrested by Metropolitan Nashville Police officers in Nashville on Friday night and will appear before a U.S. Magistrate Judge later today.
If convicted, Reames faces 20 years, up to life in prison.
This case was investigated by the Bureau of Alcohol, Tobacco Firearms & Explosives; the IRS-Criminal Investigation; the U.S. Postal Inspection Service; the DEA: Homeland Security Investigations; and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Sunny A.M. Koshy and Ahmed Safeeullah are prosecuting the case.
The defendant is presumed innocent unless and until proven guilty in a court of law.
Four Nashville Men Sentenced in Driver License Bribery SchemeRead the Press Release
Four local men were sentenced yesterday on federal bribery charges stemming from the fraudulent issuance of Tennessee driver license permits, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Walton Michael Wand, 52, of Antioch, Tennessee, formerly employed by the Tennessee Department of Safety as a license examiner at the Hart Lane station in Nashville, was sentenced to 12 months in prison, to be followed by three years of supervised release, and fined $7,500. Wand used his position as a state employee to solicit and accept bribes in exchange for issuing driver’s licenses to unqualified individuals. He was found guilty in March 2017 by a federal jury, after a two-week trial. Wand issued at least 21 fraudulent drivers’ license permits, charging $250 for each. Many of the applicants were unable to pass the written examination.
Three co-defendants were also sentenced for their roles in the conspiracy. Faransis Romany Faltas, 41, was sentenced to 12 months of probation, and fined $400; Nourrdine Abidi, 50, was sentenced to time served and fined $250; and Youssef Aziz Abdelmalak, 40, received a sentence of time served.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Stephanie N. Toussaint and Ryan R. Raybould prosecuted the case.
Cookeville Man Pleads Guilty to Counterfeiting CurrencyRead the Press Release
Chadwin Greenwood, 33, of Cookeville, Tennessee, pleaded guilty today in U.S. District Court, to manufacturing counterfeit currency, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Greenwood was indicted by a federal grand jury on April 12, 2017.
According to the court documents, Greenwood manufactured counterfeit currency by converting legitimate ten-dollar bills to counterfeit fifty-dollar bills. Greenwood admitted that he passed approximately $21,760 in counterfeit currency in the Middle District of Tennessee and elsewhere, before being apprehended while attempting to pass a counterfeit $50 dollar bill at a Family Dollar Store in Livingston, Tenn.
Greenwood faces up to 20 years in prison when he is sentenced on September 29, 2017.
The case was investigated by the United States Secret Service with valuable assistance from the Livingston Police Department, Tennessee Highway Patrol, and Jackson County Sheriff’s Office. Assistant United States Attorney Ryan Raybould is prosecuting the case.
Brentwood Doctor and Wife Sentenced to Prison for Conspiring to Defraud the IRSRead the Press Release
Dr. Jeff McCoy, Jr., 70, and Andra McCoy, 68, both of Brentwood, Tennessee, were each sentenced today to serve 36 months in prison for conspiring to defraud the United States, announced Acting U.S. Attorney Jack Smith for the Middle District of Tennessee and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. The McCoys each pleaded guilty on March 3, 2017, to one count of conspiring to defraud the United States.
According to documents filed with the court, from 2002 through 2014, Jeff and Andra McCoy conspired to defraud the IRS by impeding the collection of their income taxes. The McCoys filed 2003 through 2007 income tax returns with the IRS on which they claimed fake income tax withholding amounts and sought more than $2 million in fraudulent refunds. They submitted false documents to the IRS and placed their assets in the names of nominees and in nominee bank accounts. For example, they established a bank account for a purported nonprofit business and directed Jeff McCoy’s employer to deposit his income into the nominee account. In addition to seeking fraudulent refunds, the McCoys also failed to pay more than $500,000 in taxes owed for tax years 2001 through 2008, despite earning more than $2 million during that time.
In addition to the prison term imposed, they were ordered to pay $913,595 in back taxes and serve three years of supervised release.
The case was investigated by the IRS-Criminal Investigation. Assistant United States Attorney Thomas Jaworski and Trial Attorney Alexander Effendi prosecuted the case.
Franklin, Tennessee Man Pleads Guilty to Transporting Illegal AlienRead the Press Release
Ronald Edward Strickland, 70, of Franklin, Tenn., pleaded guilty today in U.S. District Court, to transporting an illegal alien, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Strickland, a retired Tennessee Highway Patrol sergeant, was arrested on a criminal complaint on August 1, 2016, and indicted on August 31, 2016.
According to court documents, in early 2016, Strickland devised a plan to smuggle a 22- year-old female from Honduras into the United States. Strickland texted the woman on January 7, 2016, about uniting with him and engaging in a sexual relationship. Strickland then began a series of text communications with an individual in Honduras and others, in which he discussed smuggling the woman into the Unites States. Strickland maintained the text communications, monitoring the progress of the woman’s journey, until he was notified that the woman had arrived in Houston, Texas.
In July 2016, Strickland drove to Houston, Texas, where he picked up the woman and drove her to his home in Franklin, Tenn.
Acting on a tip, on July 22, 2016, HSI agents went to Strickland’s Franklin home, where they located the 22-year-old female. The subsequent investigation determined that the woman had been illegally smuggled into the United States and that Strickland had paid a coyote $8,000 to smuggle her from Honduras to the United States. The investigation also determined that Strickland maintained an apartment in Honduras and travelled there on a regular basis.
Strickland faces up to 5 years in prison when he is sentenced on October 17, 2017.
This case was investigated by Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorneys Henry Leventis and Lynne T. Ingram.
Nashville Man Facing Federal Firearms Charge After Shooting Death of 7-Year Old GirlRead the Press Release
Anthony Patrick Sanders, 27, of Nashville, Tennessee, was charged yesterday with being a convicted felon in possession of firearms, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee. The charge is the result of an investigation into the shooting death of 7-year old Harmony Warfield, which occurred on June 6, 2017.
According to the criminal complaint obtained yesterday, on June 6, 2017, Harmony Warfied was shot in the head by a two-year old boy who picked up a handgun and fired it while in an apartment in the J.C. Napier public housing development. Harmony Warfield died as a result of the injury.
“Another innocent child has died because the defendant, a convicted felon who is prohibited from possessing a firearm, chose to ignore the law and arm himself with handguns, said Acting U.S. Attorney Jack Smith. “It is apparent from this investigation that multiple people knew that the defendant regularly carried firearms and some had even told him not to bring guns into the area where so many children are located. We implore our citizens to do the right thing and notify law enforcement when they become aware of someone who is illegally carrying a firearm. We can and will continue to bring federal charges against individuals who illegally possess firearms after having been convicted of a felony, but, as is the case here, these charges are usually brought after violent acts have occurred. We desperately need the help of our law abiding citizens if we are going to be successful in reducing the number of violent incidents involving firearms.”
As alleged in the complaint, the subsequent investigation determined that Anthony Sanders had stayed at the home the night before and was known to generally carry one or two firearms whenever he was in the J.C. Napier housing area. Sanders sometimes kept the firearms in the residence where Harmony Warfield was shot. The investigation determined that Sanders had stayed at the residence the night before and had slept on the couch. According to witness statements and video evidence, Sanders woke up and went outside. Shortly thereafter, the gun was discharged by the 2- year-old, striking Harmony in the head. Sanders re-entered the residence and saw Harmony laying on the kitchen floor. He then retrieved the firearm and fled the area, saying he could not go back to prison.
Also, according to the complaint, three other juveniles were inside the residence when the incident occurred.
“ATF, along with its partners, are working diligently to protect the public from these senseless acts of violence,” said ATF Special Agent in Charge Steve Gerido. “ATF will remain vigilant as we engage with the community and foster an environment where our children are safe. In this case justice will be swift and fair. Support from the public is crucial as the reporting of illegal activity is encouraged through ATF’s ‘report it’ phone app.”
“The protection of children is among the highest responsibilities of us all,” said Nashville Police Chief Steve Anderson. “There was a blatant failure of that responsibility in the death of Harmony Warfield. Our Youth Services detectives quickly recognized that and were in communication with the United States Attorney’s Office and the ATF early in their investigation. Individuals who unlawfully arm themselves pose a real danger to persons of all ages in our community. I am grateful to our federal partners for actively sharing this police department’s commitment to the safety of all Nashville’s neighborhoods.”
Sanders had previously been convicted in 2008 of kidnapping and was sentenced to eight years in prison. He was released from prison in June 2016.
Sanders was arrested by federal agents yesterday afternoon and appeared before a U.S. Magistrate earlier today.
If convicted, Sanders faces up to 10 years in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
This charge is merely an accusation. Sanders is presumed innocent unless and until proven guilty in a court of law.
United States Attorney's Office Completes Nashville Restaurant Review for Compliance with Americans with Disabilities ActRead the Press Release
The Office of the United States Attorney for the Middle District of Tennessee has completed its review of 16 of Nashville’s most popular and frequented restaurants to determine if they are in compliance with the Americans With Disabilities Act of 1990 (the “ADA”), announced Acting United States Attorney Jack Smith. The initiative is in accordance with the Department of Justice’s congressionally-mandated responsibility to review compliance with the ADA. It is not in response to any specific complaint against a restaurant.
This year marks the 27th anniversary of the passage of the ADA. The Act prohibits discrimination on the basis of disability by places of public accommodation, including restaurants, and requires places of public accommodation to be “designed, constructed, and altered in compliance with the accessibility standards established” by the ADA’s implementing regulations.
“Nashville is a growing city, and has become a tourist destination with a vibrant restaurant scene, said Acting U.S. Attorney Jack Smith. “People with disabilities who live, work in, and visit Nashville deserve an equal opportunity to access and enjoy all that the city has to offer. We are pleased by the cooperation of all restaurants reviewed and commend them for their desire to take swift action to resolve all of the issues identified during the review.”
The U.S. Attorney’s Office initiated its compliance review on February 29, 2016. It objectively selected the restaurants to be reviewed using recent third party restaurant rankings in order to review 16 of Nashville’s most popular and frequented restaurants. The restaurants selected were: Arnold’s Country Kitchen, Caffe Nonna, The Catbird Seat, Chauhan Ale & Masala House, City House, Etch Restaurant, Hattie B’s (Downtown), Husk, Josephine, Kayne Prime, Lockeland Table Community Kitchen & Bar, Maggiano’s Little Italy, Margot Café & Bar, Monell’s (Germantown), Rolf & Daughters, and Watermark.
As part of the review, restaurant owners were asked to complete a survey supplied by the government pertaining to their restaurant’s accessibility. Federal investigators then conducted an on-site inspection of each of the restaurants to confirm survey responses and to evaluate compliance with federal ADA regulations.
The U.S. Attorney’s Office found barriers to access in varying degrees in each of the restaurants. These barriers included, among other things, issues related to parking, entrance accessibility, fixture height and clearance and other obstacles to accessibility.
Since identifying these violations, the United States Attorney’s Office and the restaurants have worked together to remove each of these barriers in order to make the restaurants fully compliant with the ADA. The United States Attorney’s Office is pleased to announce that all 16 restaurants have undertaken efforts to remove barriers to access so that all patrons can enjoy their dining experience, and it has closed its compliance review at this time.
Nashville Man Responsible for J.C. Napier Violence Pleads Guilty to Multiple Charges and Faces 35-Year Prison SentenceRead the Press Release
Calvin Starks, 23, of Nashville, Tenn., pleaded guilty yesterday in U.S. District Court, to a series of federal crimes including using a firearm to commit a crime of violence resulting in death; conspiracy to commit Hobbs Act robbery and extortion; and conspiracy to tamper with a witness, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
According to charging documents and the plea agreement, Starks and his cousin, Darryl Starks, were responsible for shooting Joshua Woods on October 16, 2014, in the J.C. Napier neighborhood. They fired a total of 16 rounds during the assault and Woods was treated at a local hospital and survived the gunshots. After Woods had identified the Starks’ as the shooters, he was later threatened and bribed by Darryl Stark’s mother, Ivy Starks, in an attempt to prevent him from testifying truthfully in subsequent court proceedings.
On November 26, 2014, Starks and Terrance Kimbrough planned and carried out a robbery of Brendon Leggs, aka “Beazy.” They approached him at a market on Lewis St., near the J.C. Napier neighborhood and attempted to rob Leggs of drugs and money. As Leggs attempted to drive away, they opened fire on him and Leggs died from gunshot wounds shortly thereafter. The 9mm bullet casings recovered from this shooting matched casings from an incident on November 23, 2014, where a car occupied by 3 people was shot at. Starks was also involved in that shooting.
In the days following the Leggs shooting, Starks and Kimbrough searched for an individual named Monte Watson, whom they believed saw them kill Leggs and feared he would report that to law enforcement. On December 1, 2014, Starks was arrested for cocaine possession and during a subsequent recorded jail phone call, Starks made statements about Watson being a “snitch” and discussed their attempt to find him and silence him. On December 3, 2014, Monte Watson was shot and killed near Lewis and Robertson St., in close proximity to the J.C. Napier housing development. Terrance Kimbrough is currently charged with the murder of Monte Watson as well as attempted robbery and killing of Brandon Leggs.
Ivy Starks and Darryl Starks have previously pleaded guilty to charges related to this case and are awaiting sentencing. Terrance Kimbrough is awaiting trial. He is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
Former Owner of Nashville Motor Cars Pleads Guilty to Conspiracy to Commit Bank and Wire FraudRead the Press Release
Randl Arthur Roth, 48, of Murfreesboro, Tennessee, the former owner of Murfreesboro-based Nashville Motor Cars Premier car dealership, pleaded guilty today in U.S. District Court, to conspiracy to commit bank and wire fraud for his role in a conspiracy to defraud his dealership’s customers and business partners, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
Roth was charged in a criminal information on April 3, 2017.
According to the charging document and plea agreement, beginning in May 2014, Roth and two co-conspirators, who were employed at Nashville Motor Cars, devised a scheme to defraud their customers, the banks that financed their customers’ car purchases, as well as individuals and companies that financed their inventory. In furtherance of their scheme, Roth and his co-conspirators told numerous customers and their banks that Nashville Motor Cars had clean titles to the cars they sold when, in fact, Roth knew that there were existing liens on those cars. These misrepresentations induced the customers to purchase the cars and the banks to finance the purchases.
On numerous occasions during the same period, Roth and his co-conspirators told private inventory financiers that they possessed certain cars in order to gain additional credit, when, in fact, they had already sold the cars in question. These fraudulent representations led the Roth’s business partners to believe that the credit they extended to Nashville Motor Cars was secured by cars on the lot, when, in fact, those cars had already been sold.
Roth also submitted fraudulent, duplicate car title applications to the Rutherford County Clerk’s Office and provided a copy of the applications or duplicate titles to the dealership’s inventory financiers. Finally, Roth admits in the plea agreement that the financial loss he caused was in excess of $550,000.
Roth faces up to 30 years in prison and a $1,000,000 fine. He will be sentenced by Chief United States District Judge Waverly D. Crenshaw, Jr. on September 18, 2017. His sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
This case was investigated by the Federal Bureau of Investigation with assistance from the Murfreesboro Police Department and the Tennessee Highway Patrol Criminal Investigation Division. Assistant U.S. Attorney Henry C. Leventis is prosecuting the case.
Tennessee Tax return Preparer Sentenced to Prison for Filing Fraudulent ReturnsRead the Press Release
A Nashville, Tennessee resident was sentenced to serve 12 months and one day in prison today for aiding and assisting in the preparation of fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jack Smith for the Middle District of Tennessee.
According to documents filed with the court, Tracey Brown operated from her residence a tax return preparation business, Total Tax Services. From approximately January 2006 through December 2010, Brown routinely filed fraudulent tax returns without her clients’ knowledge or permission in an attempt to increase their refunds. On these returns, Brown claimed false medical expenses, charitable contributions and business losses as well as other phony deductions, thereby causing a tax loss of approximately $443,605.
In addition to the prison term imposed, Brown was ordered to serve one year of supervised release and to pay $210,169 in restitution to the Internal Revenue Service (IRS). Brown previously pleaded guilty in September 2016 to one count of aiding and assisting in the preparation of a false tax return.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Smith commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Nathan Brooks of the Tax Division and Assistant U.S. Attorney Thomas Jaworski, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Tennessee Tax Return Preparer Sentenced to Prison for Filing Fraudulent ReturnsRead the Press Release
A Nashville, Tennessee resident was sentenced to serve 12 months and one day in prison today for aiding and assisting in the preparation of fraudulent tax returns, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jack Smith for the Middle District of Tennessee.
According to documents filed with the court, Tracey Brown operated from her residence a tax return preparation business, Total Tax Services. From approximately January 2006 through December 2010, Brown routinely filed fraudulent tax returns without her clients’ knowledge or permission in an attempt to increase their refunds. On these returns, Brown claimed false medical expenses, charitable contributions and business losses as well as other phony deductions, thereby causing a tax loss of approximately $443,605.
In addition to the prison term imposed, Brown was ordered to serve one year of supervised release and to pay $210,169 in restitution to the Internal Revenue Service (IRS). Brown previously pleaded guilty in September 2016 to one count of aiding and assisting in the preparation of a false tax return.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Smith commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Nathan Brooks of the Tax Division and Assistant U.S. Attorney Thomas Jaworski, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Murfreesboro Business Owner Pleads Guilty to Tax EvasionRead the Press Release
Melissa Sue Baker, 39, of Murfreesboro Tenn., pleaded guilty today in U.S. District Court, to two counts of tax evasion, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Baker owned and operated Ascendant, a payroll processing and employee-leasing company in Murfreesboro, Tennessee. According to the plea agreement, Baker admitted that from January 2011 through December 2012, she collected but failed to pay over employment taxes on behalf of her clients and Ascendant’s employees. Baker also admitted that, while she provided her clients at times, with accurate employment tax returns, she deliberately chose not to file the accurate tax returns with the IRS. Instead, Baker filed false forms with the IRS that underreported wages, withholdings, and Social Security and Medicare taxes. Baker further admitted that she diverted employment taxes for her own personal use.
Baker faces a statutory maximum sentence of five years in prison for each tax evasion conviction, as well as a period of supervised release, restitution, and monetary penalties, when she is sentenced on August 30, 2017.
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.
Knoxville Woman Pleads Guilty in Food Program FraudRead the Press Release
Tammy Young, 47, of Knoxville, Tennessee, pleaded guilty today to conspiracy to commit wire fraud for her role with All About Giving, Inc., a sponsor organization in the United States Department of Agriculture’s Child and Adult Care Food Program (CACFP), announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
The Child and Adult Care Food Program is intended to reimburse child care providers for meals served to low-income children and other qualifying individuals. The program is funded by the USDA and administered in Tennessee by the Tennessee Department of Human Services. Program sponsor organizations are responsible for enlisting child care providers into the program, communicating the total amount of reimbursement funds the providers were entitled to receive each month to the Tennessee Department of Human Services and distributing reimbursement funds to providers.
According to the plea agreement and documents filed with the Court, Young’s cousin and co-conspirator, LaShane Hayes, started All About Giving, Inc. in 2014. Thereafter, between March 2015 and July 2016, Hayes made fraudulent reimbursement requests to the Tennessee Department of Human Services which caused the State of Tennessee to deposit more money into All About Giving’s bank accounts than it was entitled to receive. Hayes and her co-conspirators, including Young, defrauded CACFP of more than $1.5 million during this period.
Young and other co-conspirators participated in the fraud by falsifying documents to support the fraudulent reimbursement requests. These included provider records, which overstated the number of meals served to children and listed fictitious children’s names and provider lists, which included individuals who were not providing any child care. Furthermore, Young enrolled individuals in the Knoxville area as All About Giving childcare providers who she knew were not providing childcare or serving meals to children. Young also traveled from Knoxville to Nashville on numerous occasions to pick up checks from All About Giving and distribute them to alleged providers in and around Knoxville. During the course of the conspiracy, Young received over $54,000 from All About Giving.
Young faces up to 20 years in prison and a $250,000 fine. She will be sentenced by U.S. District Judge Aleta Trauger on August 30, 2017. Her sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
LaShane Hayes pleaded guilty in January 2017 to conspiracy and wire fraud and on April 12, 2017, she was sentenced to three months in prison and three years of supervised release by U.S. District Judge Aleta Trauger.
This case was investigated by the United States Department of Agriculture’s Office of Inspector General and the Tennessee Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Henry C. Leventis.
Antioch Man Sentenced in Insurance Fraud SchemeRead the Press Release
John O. Wilson, 54, of Antioch, Tenn., was sentenced today to 52 months in prison, followed by three years of supervised release for defrauding his clients and insurance agencies out of more than $800,000, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee. Wilson was also ordered to pay $841,000 in restitution.
Wilson pleaded guilty in August 2016 to two counts of wire fraud in connection with his nearly decade-long scheme to defraud and obtain money from his clients and various insurance agencies by making false representations and using interstate wires to further his scheme. From at least as early as November 2005 until approximately August 2014, Wilson, a licensed insurance producer in Tennessee, was the owner and operator of an insurance agency known as Preserve Financial Group, Inc. (“PFG”) located in the Metropolitan Nashville area. Wilson admitted to conducting his fraud scheme in at least three ways:
First, in order to obtain increased commissions, Wilson would advise clients to remove their money from their existing tax-deferrable investments and purchase multiple insurance policies. In doing so, Wilson would not disclose to his clients the consequences of the repeated investments, including adverse tax consequences and substantial surrender charges.
Second, Wilson would convince some clients to surrender insurance policies or annuities to him for investment in another insurance policy or annuity. Instead of investing the money as promised, Wilson would cause these funds to be deposited into the PFG bank account he controlled, and he would then use the funds primarily for his own benefit.
Finally, Wilson would convince some clients to surrender insurance policies or annuities by deceiving clients into believing they were investing in PFG by purchasing stock in the company. In truth, there was no such stock and, instead, the money was deposited into the PFG account, which was then used primarily for Wilson’s own personal benefit.
This case was investigated by the Federal Bureau of Investigation. The United States is represented by Assistant U.S. Attorney Thomas J. Jaworski.
Nashville Man Sentenced to 55 Years in Federal Prison for Production and Transportation of Child PornographyRead the Press Release
Damion Faulkner, 33, of Nashville, Tenn., was sentenced yesterday by Chief U.S. District Judge Waverly Crenshaw to 55 years in prison for producing and transporting child pornography, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
On July 15, 2015, a federal grand jury in Nashville, Tenn. returned a 15-count indictment, charging Faulkner with production, receipt, possession and transportation of child pornography. He pleaded guilty to all counts on September 16, 2016.
“The sentence imposed by the Court reflects the atrocious actions of the defendant and society’s need to punish the offender and insure that no other innocent children will become a victim of his perverted sexual desires,” said Acting U.S. Attorney Jack Smith.
According to documents filed with the court, beginning in July 2013, Faulkner produced a pornographic video and still images of a 5-year old girl and another pre-pubescent girl who were staying at the residence where Faulkner lived. Some of the images and the video depicted Faulkner sexually molesting the 5-year old as she slept. Faulkner subsequently distributed the images and video of the five-year-old girl to at least ten different individuals and possibly many more, often identifying her name and/or relationship to him.
The documents also describe many of Faulkner’s email conversations with others, in which he discussed his sexual attraction to young girls, offered advice on how to groom a young girl in preparation for engaging in sex and also discussed his molestation of another prepubescent girl in years past.
On January 3, 2014, Metro Nashville Police detectives executed a search warrant at Faulkner’s home. As a result of that search, detectives found 3,745 images depicting child pornography and 103 videos, most of which were of pre-pubescent girls, some as young as toddlers.
This investigation began in late 2013 when an investigator with the Vancouver, Washington Police Department Digital Evidence Cybercrime Unit discovered that an individual using a specific email address was trading images depicting the sexual exploitation of children with another individual under investigation by the same unit. Further investigation indicated that the individual using this email address was located in Nashville, Tennessee, and the case was referred to the Metropolitan Nashville Police Department. Local detectives were able to identify the individual using that email address as Damion Faulkner.
As a result of this investigation, Nashville Metro detectives were able to initiate and refer investigations, which resulted in 13 additional persons being charged in seven other states. To date, 12 of those have pleaded guilty to various charges involving child pornography.
This case is the result of the Internet Crimes Against Children Task Force, a national network of 61 coordinated task forces representing over 3,500 federal, state, and local law enforcement and prosecutorial agencies. These agencies are continually engaged in proactive and reactive investigations and prosecutions of persons involved in child abuse and exploitation involving the internet.
This case was investigated by the Metropolitan Nashville Police Department and was prosecuted by Assistant U.S. Attorney Caran S. Daughtrey.
Nashville Man Facing Federal Firearms Charges After Ramming Metro Nashville Police Cruiser to Escape ArrestRead the Press Release
Joe Lewis Williams, Jr., of Nashville, Tenn., was indicted on May 18, 2017, and charged with being a convicted felon in possession of a firearm, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Williams was initially arrested on April 12, 2017, by officers of the Metropolitan Nashville Police Department, after a series of events where he attempted to evade arrest and subsequently assaulted a Metro police officer.
“This is another example of an assault against a law enforcement officer where the defendant now faces federal charges,” said Acting U.S. Attorney Jack Smith. “I want this message to be heard loud and clear-if you commit an act of violence directed at a law enforcement officer in this district, the U.S. Attorney’s Office will review the incident to determine if there is a basis to bring federal charges. There will be zero tolerance for acts of violence against law enforcement officers in this district.”
According to a criminal complaint, issued on April 14, 2017, on the afternoon of April 12, 2017, a MNPD officer was exiting the Mercury Court Apartments on Murfreesboro Pike, when he saw a vehicle pulling into the parking lot. The officer recognized the vehicle as matching the description of one that was involved in an earlier hit-and-run and also recognized the driver as Williams, who he knew was wanted on an outstanding warrant for violation of probation.
The MNPD officer conducted a stop of Williams and ordered him two times to place his vehicle in park. Williams refused and pulled away, rammed the officer’s patrol car and pushed it out of the way to allow him to exit the parking lot. Williams then fled the area and was found minutes later by another MNPD officer, parked at the rear of a nearby hotel and standing outside the vehicle. Williams ignored the officer’s orders and ran through the hotel’s breezeways before being caught by the officer. Williams resisted and struggled with the officer and as the officer was about to deploy his Taser, he noticed a handgun protruding from William’s pocket. In an attempt to gain control of Williams and the firearm, the officer dropped the Taser and as the struggle continued, Williams lunged toward the Taser, before being subdued with the assistance of another MNPD officer. Officers recovered a 9mm semiautomatic pistol, loaded with 13 live rounds and drug paraphernalia from Williams.
Williams had previously been convicted by the State of Tennessee of possession with intent to sell cocaine and had prior federal felony convictions for carjacking, use of a firearm in commission of a crime of violence, being a convicted felon in possession of a firearm and aggravated identity theft.
If convicted, Williams faces a sentence of up to 10 years in prison and a $250,000 fine.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Rascoe Dean is prosecuting the case.
Nashville Man Pleads Guilty to Federal Firearms Charge for Shooting in Cayce HomesRead the Press Release
Antonio Eugene Boyd, aka Tony T, 37, of Nashville, Tenn., pleaded guilty today in U.S. District Court, to being a convicted felon in possession of a firearm and ammunition, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
These charges resulted from an incident on September 15, 2016, where Metropolitan Nashville Police officers responded to a shooting in the area of South 7th St. and Sylvan St., within the James A. Cayce public housing development. The subsequent investigation determined that Boyd had been walking down the street with his girlfriend when he saw a blue Dodge Charger approaching. Boyd drew a 9mm semi-automatic from his waistband and fired multiple rounds at the car as it approached, and continued firing as it passed by. Two adults and young children occupied the Charger. The shooting also occurred at approximately 8:00 a.m., when there were school buses and several children outside and in the immediate vicinity.
Boyd told investigators that he had numerous prior altercations with an occupant of the Charger and initially claimed the occupants shot at him first, although the video surveillance did not support the claim that any shots were fired from the vehicle.
Boyd had been previously convicted of multiple felonies, including robbery; possession with intent to sell cocaine; and being a convicted felon in possession of a firearm. The plea agreement in this case requires Boyd to be sentenced to 96 months in prison when he is sentenced on August 21, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
Tad Cummins Indicted by Federal Grand JuryRead the Press Release
A federal grand jury sitting in Nashville, Tenn. today, returned a two- count indictment charging Tad Cummins, 50, of Columbia, Tenn., with transporting a minor across state lines for the purpose of engaging in criminal sexual conduct and obstruction of justice, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee
Cummins was initially charged in a criminal complaint on April 20, 2017, after being located in Cecilville, Calif. with the 15-year-old female victim. As alleged in the complaint, Cummins and the 15-year old had been the subject of a nationwide search by law enforcement, after leaving the Columbia, Tenn. area on March 13, 2017.
Cummins was served with an arrest warrant by FBI agents on Friday, April 21, 2017, while in the custody of the Siskiyou County, Calif. Sheriff. He appeared before a U.S. Magistrate in Sacramento, Calif. on April 24, 2017, and waived a detention hearing and was ordered transferred to the Middle District of Tennessee for further proceedings.
Cummins was returned to the Middle District of Tennessee on May 9, 2017, and appeared for a preliminary and detention hearing before U.S. Magistrate Judge Barbara Holmes on May 12, 2017. Cummins was ordered to be held in custody to await action by the grand jury.
If convicted, Cummins faces a mandatory minimum sentence of 10 years in prison, up to life.
This case was investigated by the FBI and the Tennessee Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorneys Phillip Wehby and Sara Beth Myers.
An indictment merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Final Group of Physicians and Owner of Medical Practice Plead Guilty in Medical Kickback SchemeRead the Press Release
Pam Gardner, 55, of Springfield, Tennessee, pleaded guilty yesterday, to conspiracy to solicit and receive cash kickbacks in exchange for making patient referrals, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
During a hearing before U.S. District Court Judge Sean Cox, sitting by designation, Gardner admitted that, as the owner and operator of Medical Necessities, Inc., a medical practice located in Springfield, Tenn., she agreed to receive cash kickbacks in exchange for causing patients to be referred to Air Affiliates, a Nashville-based medical equipment provider. Gardner admitted to accepting at least $15,000 in cash kickbacks, in exchange for referring patients to Air Affiliates, who provided these patients with Durable Medical Equipment such as continuous positive airway pressure (“CPAP”) ventilators. Gardner further acknowledged that some of the patients she referred in exchange for cash payments were Medicare beneficiaries.
Gardner faces up to five years in prison and a $250,000 fine when she is sentenced on September 26, 2017.
Also yesterday, Torvis Gardner, 41, of Springfield, Tennessee, an employee at Medical Necessities, pleaded guilty to making or causing a false statement to be made in a claim under a federal health care program. He faces up to one year in prison and a fine of up to $10,000. Gardner is scheduled to be sentenced on September 26, 2017.
These guilty pleas follow several other recent convictions in this district involving individuals who paid for or accepted cash kickbacks in exchange for patient referrals, or who caused false statements to be made in claims submitted under a federal health care program:
- On May 8, 2017, Dr. Donald Boatright, 72, of Nashville, Tenn., a physician who practiced at Medical Necessities, pleaded guilty to making or causing a false statement to be made in a claim under a federal health care program. He faces up to one year in prison and up to a $10,000 fine when he is sentenced on September 26, 2017.
- April 25, 2017, Dr. Hailu Kabtimer, 57, a physician practicing in Hendersonville, Tennessee, pleaded guilty to making or causing a false statement to be made in a claim under a federal health care program. Kabtimer faces up to one year in prison and up to a $10,000 fine when he is sentenced on August 22, 2017.
- On February 19, 2016, Dr. Bruce Rubinowicz, 54, of Aventura, Florida and previously of Franklin, Tennessee, pleaded guilty to one count of soliciting and receiving a cash kickback in exchange for making patient referrals to Air Affiliates. Rubinowicz faces up to five years in prison and a $25,000 fine when he is sentenced on July 31, 2017.
- On August 6, 2015, Bradley Sensing, 55, of Nashville, Tenn. and the owner of Air Affiliates, pleaded guilty to one count of conspiring to pay cash kickbacks in exchange for patient referrals. Sensing is scheduled to be sentenced on June 26, 2017.
All sentences will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General, and the Tennessee Bureau of Investigation. The United States is represented by Assistant U.S. Attorney Thomas J. Jaworski.
Leader of Mid-State Heroin and Meth Distribution Conspiracy Pleads Guilty to Federal ChargesRead the Press Release
Jorge Andres Lopez Montiel, aka “Jimmy,” 26, of Tepic Nayarit, Mexico, pleaded guilty yesterday in U.S. District Court, to possession with intent to distribute heroin and conspiracy to possess with intent to distribute heroin and methamphetamine, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
According to the plea agreement, Montiel has agreed to a sentence of 210 months in prison. He will be sentenced on September 25, 2017.
Montiel was indicted by a federal grand jury in October 2009 after being identified as the person in charge of heroin sales for the Nashville area for a major heroin supplier in Mexico. Before he was taken into federal custody, Montiel was deported to Mexico, where he continued to distribute heroin and later methamphetamine, through a network of distributors acting at his direction, who transferred the proceeds of the drug sales to Mexico, often through wire transfers.
Montiel was taken into federal custody when he illegally re-entered the United States in late 2016.
During one phase of this investigation, between July 2013-April 2015, the Metropolitan Nashville Police Special Investigation Division arrested 22 persons, seized 14 pounds of heroin and 1 ½ pounds of Methamphetamine. Of those persons arrested, in addition to Montiel, four others were charged with federal offenses; Matthew McKervey, 28; Brian Goforth, 44; Daniel Alcala, 29; and David Becerra-Ruiz, 42, all of Nashville.
On April 1, 2015, Metro Nashville officers executed a search warrant at the home of Matthew McKervey. As officers entered the home, McKervey fired three shots at the officers, who returned fire and wounded McKervey. He was subsequently charged with federal firearms and drug offenses and is currently awaiting trial. Brian Goforth has pleaded guilty and is awaiting sentencing. The three remaining defendants are still pending before the Court. They are presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the Metropolitan Nashville Police Department and the DEA. Asst. U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
Illegal Alien Sentenced to 50 Years in Federal Prison for Production of Child PornographyRead the Press Release
Edwin Velasquez Curuchiche, 40, of Guatamala, formerly residing in Lebanon, Tenn., was sentenced on Friday by United States District Court Judge Waverly Crenshaw to 50 years in prison, for two counts of production of child pornography, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
Curuchiche was indicted on these charges on August 24, 2016, and pleaded guilty on February 21, 2017.
The defendant’s conduct here is among the most egregious that I have ever seen,” said Acting U.S. Attorney Jack Smith. “It is almost unimaginable that an innocent child and her family were subjected to such horrific acts by an intruder who masked himself as a family friend. The sentence ultimately imposed by the Court should insure that the defendant never has another opportunity to victimize another child.”
According to court documents, Curuchiche lived in a trailer park in Lebanon, Tenn. and in 2015, he befriended a family who lived nearby. During the course of several months, Curuchiche established a relationship with the family and their three children, which included a nine year-old boy, a six year-old girl and an infant. Curuchiche gave them video gaming systems and other electronic devices, taught them how to play the games and offered to play with them when their father was not home.
In September 2015, Curuchiche used a ruse to trick the mother into letting him borrow her house key, after which he copied the key, without her knowledge, before returning it to her. Also in 2015, he learned that the six-year old daughter was running a fever and he took a bag of medicine to the mother and encouraged her to give the child an adult dose of Valium. The parents of the child did not give the medication to their daughter and Curuchiche later attempted to pay the girl’s nine-year-old brother to give her the medication.
On September 23, 2015, Curuchiche snuck into the family’s home during the night and recorded himself sexually molesting the six-year-old girl while she slept. Again, on October 1, 2015, Curuchiche snuck into the home and recorded additional videos of himself sexually molesting the child as she slept.
In late October of 2015, the six-year-old child awoke during the night and went to her parent’s bedroom crying that someone had been touching her while she slept. One of her parents checked her bedroom and finding nothing, they assumed the child was imagining things.
On the evening of October 29, 2015, the family returned to their home, after a trip to the store. After entering the home, the daughter went to her bedroom to get a toy. Curuchiche was hiding under the bed and tried to grab her by the arm and quiet her by telling her to play a game on a cell phone, which he had previously given to her. The girl ran to her parents and the father found Curuchiche hiding in his daughter’s bedroom closet, where he held him until police arrived and took him into custody.
Court documents also show that Curuchiche was apprehended in June 2013 when he unlawfully entered the United States. He subsequently failed to appear for an immigration hearing and was living in the U.S. unlawfully when he committed this offense.
This matter was investigated by Homeland Security Investigations and the Lebanon Police Department. The United States was represented by Assistant U.S. Attorney S. Carran Daughtrey.
Former Meharry Medical College Employee Pleads Guilty to Theft of Federal Program FundsRead the Press Release
Carolyn McCain-Davis, 54, of Spring Hill, Tennessee, pleaded guilty on Friday to embezzling funds from a federal program while employed at Meharry Medical College (“MMC”), announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
According to facts presented at the plea hearing, MMC receives funding from the U.S. Department of Health & Human Services through the National Institutes of Health. McCain-Davis was employed at MMC as a grants development specialist and was responsible for approving invoices and processing payment requests relating to MMC’s employees and vendors.
McCain-Davis admitted that between August 2009 and May 2013, she devised and carried out a scheme to defraud the United States by submitting false invoices, as an agent of MMC, from companies that were not legitimate vendors nor was any service provided to MMC. The false invoices were often submitted under the names of companies set up by McCain-Davis and she approved and submitted payment requests and directed payments to bank accounts under her control.
McCain-Davis also processed reimbursement payments to herself for expenses that were never incurred and intercepted re-imbursement payments to other employees, forged the signatures of the payees and deposited those checks into bank accounts under her control or under the control of a close relative. McCain-Davis fraudulently obtained over $133,000 through the operation of this scheme.
McCain-Davis faces up to 10 years in prison, a $250,000 fine, and three-year term of supervised release. She will be sentenced on August 9, 2017.
This case is being investigated by U.S. Department of Health and Human Services - Office of Inspector General. Assistant U.S. Attorney Stephanie N. Toussaint is prosecuting the case.