Middle District of Tennessee
Press releases recorded for this federal judicial district.
Nashville Man Sentenced to 20 Years in Federal PrisonRead the Press Release
Anthony Laquesa Coleman a/k/a Scrappy, 30, of Nashville, Tenn., was sentenced today to 20 years in prison, followed by six years of supervised release, by Senior U.S. District Judge Marvin E. Aspen of the Northern District of Illinois (sitting by designation in the Middle District of Tennessee), announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Coleman was indicted in July 2015 and pleaded guilty in November 2016 to possessing drugs with intent to distribute and being a felon in possession of a firearm. Coleman had previously been convicted on state charges including, two drug felony convictions, being a felon in possession of a firearm, and reckless aggravated assault.
According to the facts presented at his plea hearing, Coleman regularly sold cocaine and crack cocaine in the area of 16th Avenue North and Buchanan Street in North Nashville. Area residents had previously asked him not to sell drugs in that area.
On March 23, 2015, Coleman was again selling drugs in that area when a woman and her children returned to their home, along with another woman. They again asked Coleman not to sell drugs near their home. Coleman refused to leave, obtained a loaded pistol from a friend, and threatened the women in the presence of the young children. As police were called, Coleman fled to a nearby rooming house, where officers from the Metropolitan Nashville Police Department arrested him.
“All of our citizens, in every neighborhood, deserve to live without fear and without the invasive nature of drug dealers permeating their neighborhoods,” said Acting U.S. Attorney Jack Smith. “Community involvement is a vital part of keeping our neighborhoods safe, and we encourage residents to continue to work with our local and federal law enforcement partners to improve the quality of life in their neighborhoods.”
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 Attorneys Sunny A.M. Koshy and Ahmed Safeeullah.
Nashville Man Facing Federal Charges for Falsifying Aircraft Maintenance LogsRead the Press Release
James Leonard Brumit, 71, of Nashville, Tenn., was indicted yesterday by a federal grand jury and charged with two counts of fraud involving aircraft; two counts of making false statements; and two counts of aggravated identity theft, announced Acting United States Attorney Jack Smith of the Middle District of Tennessee.
The Federal Aviation Administration (“FAA”) regulates air travel and requires all U.S.-registered general aviation aircraft to undergo an annual inspection. The annual inspections are required to be performed by mechanics who are certified by the FAA as Inspection Authorization (“IA”) holders.
After an annual inspection is performed, the FAA requires the IA certificate holder to make an entry on the aircraft log book certifying that the annual inspection was made in accordance with FAA regulations, and that the information furnished therein is true and correct. An IA certificate holder receives a unique license number from the FAA to utilize when certifying annual inspections.
The indictment alleges that on July 3, 2014, and again on August 19, 2014, Brumit falsified the logbooks of two aircraft by forging the signature of an individual who held FAA inspection authority and falsely certified that the inspection was performed and reviewed by that person.
If convicted, the defendant faces up to ten years in prison for each aircraft inspection fraud count, as well as a maximum statutory penalty of five years in prison for each false statement count. Both offenses also carry a $250,000 fine and three years of supervised release. The aggravated identity theft charges carry mandatory two-year sentences.
Aircraft owners, who believe Brumit serviced their aircraft, are encouraged to contact the FAA’s local Flight District Standards Office. Local contact information can be found at https://www.faa.gov/about/office_org/field_offices/fsdo/.
This case is being investigated by the U.S. Department of Transportation-Office of Inspector General and Assistant U.S. Attorney Stephanie Toussaint is prosecuting the case.
An indictment is merely an accusation and is not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
Former Tennessee Sheriff Sentenced on Federal Corruption ChargesRead the Press Release
A former Rutherford County Sheriff was sentenced today to 50 months in prison for operating a private electronic cigarette company in the county jail for personal gain and the concealment and misrepresentation of their involvement with the business, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Robert F. Arnold, 41, of Murfreesboro, Tennessee, was sentenced today by Senior U.S. District Judge Marvin E. Aspen of the Northern District of Illinois (sitting by designation in the Middle District of Tennessee) who also ordered Arnold to pay $52,500 in restitution and to forfeit $66,790, an amount equal to all proceeds he received from sales at the Rutherford County jail. Arnold previously pleaded guilty on Jan. 30, 2017 before Chief U.S. District Judge Kevin H. Sharp of the Middle District of Tennessee.
According to his plea, Arnold admitted to using his official position as Sheriff of Rutherford County to benefit JailCigs by allowing the company’s electronic cigarettes to come into the Rutherford County jail as non-contraband and be distributed by county employees; taking steps to disguise their involvement in the company; and misrepresenting the benefits that Rutherford County was supposedly receiving from JailCigs. Additionally, Arnold admitted that he personally received over $66,000 from the company, and that he lied about his income from – and knowledge of – JailCigs when he was confronted by local media in April 2015.
Co-defendants former Chief Administrative Deputy Joe L. Russell II, of Rutherford County, Tennessee, and John Vanderveer, of Marietta, Georgia, pleaded guilty on Jan. 20, 2017, and Jan. 30, 2017, respectively. Vanderveer is set to be sentenced on Sept. 6, 2017, and Russell is set to be sentenced on Sept. 8, 2017.
The FBI and Tennessee Bureau of Investigation investigated the case. Trial Attorney Mark J. Cipolletti of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cecil W. VanDevender of the Middle District of Tennessee prosecuted the case.
Former Rutherford County Sheriff Sentenced on Federal Corruption ChargesRead the Press Release
Former Rutherford County Sheriff Robert Arnold, 41, of Murfreesboro, Tenn., was sentenced today to 50 months in prison, followed by 3 years of supervised release, after pleading guilty earlier this year to fraud and corruption charges, 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.
Arnold was indicted in May 2016 and in January 2017, he pleaded guilty to wire fraud, honest services fraud and extortion under color of official right. These charges resulted from an investigation into his role in the formation and operation of the electronic cigarette company, JailCigs, LLC. In his plea, Arnold admitted to using his official position as Sheriff of Rutherford County to benefit JailCigs by allowing the company’s electronic cigarettes to come into the Rutherford County jail as non-contraband and be distributed by county employees; taking steps to disguise his involvement in the company; and misrepresenting the benefits that Rutherford County was supposedly receiving from JailCigs. Additionally, Arnold admitted that he personally received over $66,000 from the company, and that he lied about his income from, and knowledge of, JailCigs when he was confronted by local media in April 2015.
In addition to his prison sentence, Senior U.S. District Judge Marvin E. Aspen of the Northern District of Illinois (sitting by designation in the Middle District of Tennessee) ordered Arnold to pay $52,500 in restitution to Rutherford County and to forfeit $66,790, an amount equal to the commission payments he received from sales at the Rutherford County jail, plus the additional payments Arnold obtained that should have been paid to the county general fund. Judge Aspen also ordered Arnold to serve a three-year term of supervised release following his prison sentence.
Co-defendants, former Chief Administrative Deputy Joe L. Russell II, of Rutherford County, Tennessee, and John Vanderveer, of Marietta, Georgia, pleaded guilty on Jan. 20 and Jan. 30, respectively. Vanderveer is set to be sentenced on September 6, 2017 and Russell is set to be sentenced on September 8, 2017.
This case was prosecuted by Assistant U.S. Attorney Cecil W. VanDevender, of the Middle District of Tennessee and Trial Attorney Mark J. Cipolletti of the Criminal Division’s Public Integrity Section. The case was investigated by special agents from the FBI and Tennessee Bureau of Investigation.
Woodbury Man Pleads Guilty to Stealing Deceased Relatives' IdentitiesRead the Press Release
George Ronzell Fyke, 40, of Woodbury, Tennessee, pleaded guilty today to aggravated identity theft and theft of government funds, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
According to the plea agreement, Fyke stole names and social security numbers of deceased relatives and from fellow inmates at the Montgomery County, Tenn. Jail and used them to file false income tax returns. Fyke had the tax refund checks sent to addresses under his control and after being released from jail, he forged the signatures of the stolen identities and deposited the refund checks and into his bank accounts. Fyke caused the Department of Treasury to release over $56,000 in unlawful tax refunds.
As part of his plea agreement, Fyke has agreed to a sentence of 48 months in prison and to pay restitution to the IRS. Fyke also faces a period of supervised release and other monetary penalties.
Sentencing is scheduled for August 14, 2017.
This case was investigated by the IRS-Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Ryan Raybould.
Former Nashville General Sessions Judge Indicted on Federal Obstruction ChargesRead the Press Release
Cason “Casey Moreland, 59, of Nashville, Tenn., was indicted by a federal grand jury today on five counts of obstruction of justice, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Moreland was initially arrested on March 28, 2017, pursuant to a criminal complaint charging him with several obstruction charges.
According to the indictment, Moreland was a General Sessions Judge in Nashville, Tenn. and in February 2017, he became aware that he was a target of an investigation being conducted by the FBI and a federal grand jury. The indictment alleges that after learning of the nature of the investigation, Moreland took steps to obstruct and interfere with the investigation by devising a scheme to pay a material witness to recant her previous statements, which implicated his criminal conduct in trading sex for judicial favors.
The scheme included Moreland’s attempt to disguise his involvement in the obstruction by using a burner phone registered in a fictitious name and communicating only through an individual who subsequently became an informant, working at the direction of the FBI. The indictment also alleges that Moreland took further actions and devised a scheme to have drugs planted in the witness’ car and to orchestrate a traffic stop by police, in which the drugs would be found, so that she would be arrested and her credibility destroyed.
Counts 1, 2 & 5 of the indictment carry a maximum penalty of 20 years in prison. Counts 3 &4 carry a maximum of 10 years in prison. Each count also carries a fine of up to $250,000.
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 FBI and is being prosecuted by Assistant U.S. Attorney Cecil VanDevender and Trial Attorney Lauren Bell, of the Public Integrity Section of the Department of Justice.
Columbia, Tennessee Man Ordered Detained by U.S. Magistrate in Sacramento, CaliforniaRead the Press Release
Tad Cummins, 50, of Columbia, Tenn., appeared before a U.S. Magistrate in Sacramento, California today and was ordered to be held in custody, pending his subsequent transfer to the Middle District of Tennessee, to await trial on the charge of transporting a minor across state lines for the purpose of engaging in unlawful sexual activity, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
Cummins was 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 arrested by FBI agents on Friday, April 21, 2017, while in the custody of the Siskiyou County, Calif. Sheriff. He appeared before U.S. Magistrate Judge Kendall J. Newman this afternoon for a detention hearing. Magistrate Judge Newman ordered that he be transferred to the Middle District of Tennessee as soon as possible for further proceedings.
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 Phil Wehby and Sara Beth Myers of the Middle District of Tennessee and Jason Hitt of the Eastern District of California.
The charges brought by this complaint are merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Former Tennessee Commerce Bank Executive Pleads Guilty to Deceiving Federal RegulatorsRead the Press Release
Lamar Cox, 73, of Nashville, Tenn., former Chief Operating Officer and Board of Directors member of now defunct Tennessee Commerce Bank (TCB), pleaded guilty on April 21, 2017, to causing the bank to make a false statement to the Federal Deposit Insurance Corporation (FDIC), announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee. TCB was closed by federal regulators on January 27, 2012, due to its failing financial condition.
“Deceiving federal regulators can have dire consequences for banks and ultimately place its stakeholders in financial peril,” said Acting U.S. Attorney Jack Smith. “Those who engage in such behavior should expect that they will be held accountable through the efforts of our office and our financial regulatory partners.”
According to the Information, Cox devised a scheme to deceive the FDIC by delaying reporting of the full amount of a $710,000 loss by TCB on the bundled sale of $4,000,000 in foreclosed properties. Cox sought to delay reporting the full amount of the loss so that TCB’s books would look better to federal bank examiners, who were scheduled to soon examine TCB. In order to accomplish the deception, Cox created a pre-planned and fraudulent “posting error,” causing TCB to report only $270,000 of the $710,000 loss from its sale of the foreclosed properties in the third quarter of 2009. Cox’s actions caused TCB to understate its net loss by $440,000 reported in the Call Report filed with the FDIC for the third quarter of 2009, thus concealing the true financial condition of TCB from shareholders, examiners and the public.
"In 2009, at the height of the financial crisis and while Tennessee Commerce Bank was in TARP, Lamar Cox had an important decision to make: as required by law, he could tell the truth to bank examiners about loan losses or hatch a scheme to make the bank appear healthier than it actually was," said Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (TARP). "Cox chose lies and deception to understate the bank's losses and inflate its income. And, as the chief operating officer and member of the bank's board of directors, he made that decision to deceive in a key position of authority with decades of experience in finance, compliance, and lending. Tennessee Commerce Bank received a $30 million bailout from TARP, all of which was lost when the bank failed. I commend Acting U.S Attorney Jack Smith and Assistant U.S. Attorney Thomas J. Jaworski for standing united with SIGTARP against crime by this TARP banker."
Cox is scheduled to be sentenced on August 14, 2017. He faces up to 30 years in prison, a criminal fine of up to $1,000,000, and restitution to be determined by the Court. His sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
The case was investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); the FDIC Office of Inspector General-Office of Investigations; and the FBI. The United States is represented by Assistant U.S. Attorney Thomas J. Jaworski.
Former Executive Director of Birmingham Volunteer Lawyer Program Charged with Misapplication of Federal Program FundsRead the Press Release
Kelli Hogue Mauro, 48, of Birmingham, Alabama, and former Executive Director of the Birmingham Volunteer Lawyer Program, has been charged with misapplication of property worth at least $5,000 from a federal program, announced Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
The criminal information, filed on April 19, 2017, charged that between January 1, 2012 through August 31, 2012, Mauro misappropriated property owned by and under the control of the Birmingham Volunteer Lawyers Program, an organization that received benefits in excess of $10,000 from grants made by the federal Legal Services Corporation through Legal Services Alabama.
The criminal information was filed in the United States District Court for the Northern District of Alabama by the Office of the United States Attorney for the Middle District of Tennessee. The Office of the United States Attorney for the Northern District of Alabama was recused from the matter to avoid any appearance of impartiality.
This offense is punishable by not more than 10 years in prison, a fine of not more than $250,000, a period of supervised release of not more than 3 years, and payment of restitution in an amount to be determined by the court.
A criminal information 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 Office of Inspector General for the Legal Service Corporation. Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee is prosecuting the case.
Tennessee Sheriff Pleads Guilty to Federal Corruption and Civil Rights ChargesRead the Press Release
The sheriff of Fentress County, Tennessee, pleaded guilty today to three counts of honest services fraud and one count of deprivation of rights under color of law.
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 of Jared Effler the Eight Judicial District in Tennessee made the announcement.
Charles Cravens, 47, of Jamestown, Tennessee, pleaded guilty today before U.S. District Judge Aleta Trauger of the Middle District of Tennessee. Sentencing is scheduled for July 20, 2017.
“Sheriff Cravens selfishly tarnished the reputation and badge worn proudly by so many hard-working and upstanding members of the law enforcement community who risk their lives every day. He shamefully turned his back on the citizens of Fentress County and used the powers of his office to serve his own personal and sexual desires and to victimize the inmates under his charge,” said Acting Assistant Attorney General Blanco. “Our prosecutors and law enforcement partners are committed to rooting out and exposing corruption and abuse of all kinds and at all levels of government.”
“Our citizens deserve public officials who serve their constituents, not their own personal interests,” said Acting U.S. Attorney Smith. “I promise you that elected officials in our district who abuse their authority and take advantage of the trust placed in them by the folks who put them in office will be brought to justice. The U.S. Attorney’s Office and our law enforcement partners serve the people of the entire district, including, not just Nashville, but also rural areas like Fentress County. We will enforce our nation’s laws equally to protect all our citizens of against abuses of power wherever they occur.”
“The citizens of Fentress County and all of Tennessee deserve elected officials who work in the public’s best interest, especially from those officials who are sworn to uphold the law,” said Director Gwyn. “We are grateful to have the cooperation and support of our federal and state partners in investigating officials who abuse that public trust.”“I am grateful to our law enforcement partners for their swift response and assistance to the citizens of Fentress County,” said District Attorney General Effler. “The District Attorney’s Office always stands ready to provide any assistance necessary to investigate and prosecute matters involving public corruption.”
As Sheriff of Fentress County, Cravens served as the chief law enforcement officer within Fentress County. Among his duties as Sheriff, Cravens was responsible for the operation of the Fentress County Jail in Jamestown, Tennessee, a correctional facility housing approximately 147 male and female inmates.
According to admissions in the plea agreement, Cravens used his position as Sheriff to solicit sex from and have sex with 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.
Cravens admitted that in July 2016 he summoned an inmate into his office where they engaged in sexual activity. In August 2016, Cravens admitted that he discussed having sex together with two inmates, and that he drove them to a vacant trailer off jail property where the three engaged in sexual activity. Cravens further admitted that he maintained a sexual relationship with these inmates for several months, until they were released from jail, the last being in February 2017. Cravens also admitted that in February 2017, he drove a third inmate outside of the jail to visit a relative and initiated sex with the inmate in his vehicle on the route back. Cravens admitted that had sex with this inmate on at least one other occasion. Cravens also admitted that several of the sexual acts occurred in an official Fentress County Sheriff’s Department vehicle that Cravens was authorized to drive.
According to plea documents, Cravens admitted that he used his position as sheriff to provide additional benefits to these inmates in exchange for sex. Among those benefits, Cravens admitted to personally transporting inmates outside the jail to visit relatives. Cravens also admitted to providing money on three occasions to the relatives of two inmates for depositing into the inmates’ commissary accounts. Cravens further admitted to allowing two inmates to exit the jail building to smoke cigarettes that he either provided personally or directed other jail staff to provide. Cravens further admitted he 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. According the plea, between Aug. 24, 2016, and March 1, 2017, three inmates placed over 700 calls total to Cravens’ phone.
Also according to the plea, Cravens admitted to using unreasonable force as a law enforcement officer in November 2016, kicking a handcuffed male inmate in the backside and also punching him twice in the back of the head.
The FBI and TBI are investigating the case. This case is being prosecuted by Acting Chief AnnaLou Tirol and 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.
Tennessee Sheriff Pleads Guilty to Federal Corruption and Civil Rights ChargesRead the Press Release
The sheriff of Fentress County, Tennessee, pleaded guilty today to three counts of honest services fraud and one count of deprivation of rights under color of law.
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 of Jared Effler the Eight Judicial District in Tennessee made the announcement.
Charles Cravens, 47, of Jamestown, Tennessee, pleaded guilty today before U.S. District Judge Aleta Trauger of the Middle District of Tennessee. Sentencing is scheduled for July 20, 2017.
“Sheriff Cravens selfishly tarnished the reputation and badge worn proudly by so many hard-working and upstanding members of the law enforcement community who risk their lives every day. He shamefully turned his back on the citizens of Fentress County and used the powers of his office to serve his own personal and sexual desires and to victimize the inmates under his charge,” said Acting Assistant Attorney General Blanco. “Our prosecutors and law enforcement partners are committed to rooting out and exposing corruption and abuse of all kinds and at all levels of government.”
“Our citizens deserve public officials who serve their constituents, not their own personal interests,” said Acting U.S. Attorney Smith. “I promise you that elected officials in our district who abuse their authority and take advantage of the trust placed in them by the folks who put them in office will be brought to justice. The U.S. Attorney’s Office and our law enforcement partners serve the people of the entire district, including, not just Nashville, but also rural areas like Fentress County. We will enforce our nation’s laws equally to protect all our citizens of against abuses of power wherever they occur.”
“The citizens of Fentress County and all of Tennessee deserve elected officials who work in the public’s best interest, especially from those officials who are sworn to uphold the law,” said Director Gwyn. “We are grateful to have the cooperation and support of our federal and state partners in investigating officials who abuse that public trust.”
“I am grateful to our law enforcement partners for their swift response and assistance to the citizens of Fentress County,” said District Attorney General Effler. “The District Attorney’s Office always stands ready to provide any assistance necessary to investigate and prosecute matters involving public corruption.”
As Sheriff of Fentress County, Cravens served as the chief law enforcement officer within Fentress County. Among his duties as Sheriff, Cravens was responsible for the operation of the Fentress County Jail in Jamestown, Tennessee, a correctional facility housing approximately 147 male and female inmates.
According to admissions in the plea agreement, Cravens used his position as Sheriff to solicit sex from and have sex with 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.
Cravens admitted that in July 2016 he summoned an inmate into his office where they engaged in sexual activity. In August 2016, Cravens admitted that he discussed having sex together with two inmates, and that he drove them to a vacant trailer off jail property where the three engaged in sexual activity. Cravens further admitted that he maintained a sexual relationship with these inmates for several months, until they were released from jail, the last being in February 2017. Cravens also admitted that in February 2017, he drove a third inmate outside of the jail to visit a relative and initiated sex with the inmate in his vehicle on the route back. Cravens admitted that had sex with this inmate on at least one other occasion. Cravens also admitted that several of the sexual acts occurred in an official Fentress County Sheriff’s Department vehicle that Cravens was authorized to drive.
According to plea documents, Cravens admitted that he used his position as sheriff to provide additional benefits to these inmates in exchange for sex. Among those benefits, Cravens admitted to personally transporting inmates outside the jail to visit relatives. Cravens also admitted to providing money on three occasions to the relatives of two inmates for depositing into the inmates’ commissary accounts. Cravens further admitted to allowing two inmates to exit the jail building to smoke cigarettes that he either provided personally or directed other jail staff to provide. Cravens further admitted he 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. According the plea, between Aug. 24, 2016, and March 1, 2017, three inmates placed over 700 calls total to Cravens’ phone.
Also according to the plea, Cravens admitted to using unreasonable force as a law enforcement officer in November 2016, kicking a handcuffed male inmate in the backside and also punching him twice in the back of the head.
The FBI and TBI are investigating the case. This case is being prosecuted by Acting Chief AnnaLou Tirol and 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.
Fentress County Sheriff Facing Federal Corruption and Civil Rights ChargesRead the Press Release
Charles Cravens, 47, the Sheriff of Fentress County, Tennessee, was charged today in a criminal Information with 3 counts of honest services fraud and one count of deprivation of rights under color of law, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee. Joining Smith in the announcement were Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Michael Gavin, Special Agent in Charge of the Memphis Division of the FBI; and Jared Effler, District Attorney General of the Eight Judicial District in Tennessee.
“Our citizens deserve public officials who serve their constituents, not their own personal interests,” said Acting U.S. Attorney Jack Smith. “I promise you that elected officials in our district who abuse their authority and take advantage of the trust placed in them by the folks who put them in office will be brought to justice. The U.S. Attorney’s Office and our law enforcement partners serve the people of the entire district, including, not just Nashville, but also rural areas like Fentress County. We will enforce our nation’s laws equally to protect all our citizens of against abuses of power wherever they occur.”
According to the allegations contained in the charging document, Charles Cravens was the Sheriff of Fentress County and therefore was the chief law enforcement officer of the county. In addition to other law enforcement duties, Sheriff Cravens was responsible for the operation of the Fentress County Jail in Jamestown, Tenn.
The information alleges that in July 2016 Inmate 1 was summoned into Craven’s office where she had unprotected sex with the sheriff.
The Information also alleges that in August 2016, Cravens discussed having sex together with Inmate 1 and Inmate 2 and they formulated a plan to leave the jail together. Cravens subsequently drove these inmates to a vacant trailer where they all engaged in unprotected sex. Cravens maintained a sexual relationship with these inmates for several months, until they were released from jail, the last being in February 2017.
The Information also alleges that in February 2017, Craven’s drove Inmate 3 outside of Fentress County to visit a relative. On the way back to the jail, Craven’s raised the subject of sex and the inmate agreed and had unprotected sex with the Sheriff in his vehicle. The Information alleges that Cravens had sex with this inmate on at least one other occasion.
The Information alleges that in exchange for the sexual relationships with these inmates, Cravens used his position as sheriff to provide additional benefits to these inmates. These extra benefits included the inmates being transported personally by the sheriff from the jail to visit relatives; the inmates being allowed to go outside of the jail to smoke cigarettes; and the sheriff providing money to relatives of the inmates for deposit into their jail commissary accounts.
To request the special privileges, the inmates called Sheriff Cravens personal cell phone and left recorded messages through the jail’s telephone system, operated by Securus Technologies, Inc. Through the use of this system, payment is required when inmates make outgoing calls, however, the system allowed for an approximate 20-second message to be left without incurring charges. The Information alleges that between August 24, 2016, and March 1, 2017, Inmate 1 called Cravens 332 times; Inmate 2 called Cravens 51 times; and Inmate 3 placed 349 calls to Cravens’ phone.
Finally, the Information alleges that on November 13, 2016, Cravens and Inmate 4 were in an open area within the jail and Cravens kicked Inmate 4 twice in the backside and placed him in a headlock while another correctional officer handcuffed him. After the inmate was handcuffed, Cravens struck him twice in the back of the head with his fist.
“The citizens of Fentress County, and all of Tennessee, deserve elected officials who work in the public’s best interest, especially from those officials who are sworn to uphold the law,” says TBI Director Mark Gwyn. “We are grateful to have the cooperation and support of our federal and state partners in investigating officials who abuse that public trust.”
“I am grateful to our law enforcement partners for their swift response and assistance to the citizens of Fentress County,” said District Attorney General Jared Effler. “The District Attorney’s Office always stands ready to provide any assistance necessary to investigate and prosecute matters involving public corruption.”
If convicted, Cravens faces a maximum of 20 years in prison for each count of honest services fraud and up to one year in prison on the civil rights charge.
Charges brought by an Information are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
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 is being prosecuted by Assistant United States Attorney Katy Risinger and DOJ Trial Attorneys Lauren Bell and Andrew Laing of the Department’s Public Integrity Section.
Nashville Return Preparer Indicted for Filing False Tax ReturnsRead the Press Release
Robert J. Spears, 35, of Nashville, Tenn., was indicted yesterday by a federal grand jury in Nashville, Tenn., for preparing false tax returns and for filing his own fraudulent tax returns, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
According to the indictment, Spears worked as a salesperson and manager at a telephone call-center and between 2010 through 2012, Spears prepared and filed false tax returns for his coworkers. The returns fraudulently claimed bogus education credits, student loan interest deductions, and child-care expenses, which the taxpayers did not qualify for. The indictment also alleges that Spears stole a substantial portion of the tax refunds issued in his coworkers’ names by diverting the tax refunds to his own personal bank accounts.
Finally, the indictment alleges that Spears filed his own false tax returns for tax years 2010 through 2012 by substantially understating his income.
If convicted, Spears faces a statutory maximum sentence of three years in prison for each count, as well as a period of supervised release, restitution, and monetary penalties.
The case was investigated by the IRS – 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.
An indictment is merely an accusation and is not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
Nashville Man Charged with Federal Firearm Offense After Firing at Metro Police OfficersRead the Press Release
Antonio L. Bender,19, of Nashville, Tenn., has been charged with being an unlawful user of a controlled substance in possession of firearms, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee. These charges follow an incident on March 27, 2017, where Bender shot at two Metropolitan Nashville police officers who were investigating the sound of gunfire in the area of the J.C. Napier and Tony Sudekum public housing developments.
“Let me be perfectly clear – the U.S. Attorney’s Office has a zero-tolerance policy when violence is directed at our law enforcement officers,” said Acting U.S. Attorney Jack Smith. “When such violence is directed at law enforcement officers the U.S. Attorney’s Office will give full priority to determining whether federal laws have been violated and if so, will seek to prosecute the offender.”
According to the criminal complaint, on March 27, 2017, two uniformed Metro Nashville police officers were patrolling on Charles E. Davis Blvd., in the area of the J.C. Napier and Tony Sudekum public housing developments when they heard gunfire. Both officers exited their patrol car to investigate further and heard additional gunshots as they walked toward the building at 168 Charles E. Davis Blvd. The officers then encountered two suspects, one of which, later identified as Bender, pointed two guns equipped with laser lights at the officers and fired one shot. Bender then fled and after a short foot chase, he was taken into custody by the officers and two loaded, semi-automatic pistols were recovered.
Subsequent investigation by agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives determined that Bender was a regular user of marijuana and cocaine and he is a member of the Rollin 60s gang.
If convicted, Bender faces up to 10 years in prison.
This case was investigated by the Metropolitan Nashville Police Department and the ATF. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.
A criminal complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Provider of Behavioral Therapy for Children with Autism Spectrum Disorder Agrees to Settle False Claims Act AllegationsRead the Press Release
Exemplary Behavior, LLC, based in Hendersonville, Tenn., and its principal, Andre Anderson, BCBA, have agreed to pay $20,000 to settle allegations that they violated the False Claims Act, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee. Exemplary Behavior also operates an office in Clarksville, Tenn.
The alleged conduct involved the submission of false claims for payment to the Defense Health Agency’s TRICARE program for the provision of therapy services, including Applied Behavior Analysis (“ABA”) to children with Autism Spectrum Disorder (“ASD”). Anderson has also agreed to a three-year exclusion from the TRICARE program.
“The TRICARE program covers ABA therapy while most forms of insurance do not, in order to help some of our most deserving yet vulnerable citizens - children who live with and persevere through ASD,” said Acting U.S. Attorney Jack Smith. “This office and its agency partners will diligently pursue both monetary and administrative relief for any violations of federal law that could result in an adverse impact on these children or on the program that funds their treatment.”
Specifically, the settlement resolves allegations by the United States that Exemplary Behavior, through the knowing actions of Mr. Anderson, submitted false claims to TRICARE as a result of their (1) double billing for services rendered; (2) billing for services not rendered by the billing provider; (3) providing group therapy while billing for individual therapy; and (4) billing for services, including ABA therapy, that were not actually provided. The alleged conduct occurred between July 1, 2009, and March 31, 2013.
“This settlement highlights another success demonstrating the continuing commitment of the Defense Criminal Investigative Service (DCIS) to protect the integrity of TRICARE, the Department of Defense health care program,” said Special Agent in Charge of the Southeast Field Office, John F. Khin. “To protect DOD’s limited resources and budgets, DCIS must aggressively investigate fraud, waste, and abuse in our most vulnerable programs to ensure that funds are used properly for our Warfighters, their family members, and military retirees.”
This matter was investigated by the Department of Defense Office of Inspector General, the Federal Bureau of Investigation, and the United States Attorney’s Office for the Middle District of Tennessee. The United States is represented by Assistant U.S. Attorney Christopher C. Sabis.
Nashville Woman Pleads Guilty to Bribery and Witness TamperingRead the Press Release
Ivy C. Starks, 50, of Nashville, Tenn., pleaded guilty yesterday in U.S. District Court, to bribery and witness tampering, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
According to facts contained in the plea agreement, Joshua Woods a/k/a J-Looney was shot on October 16, 2014 by Darryl Starks and Calvin Starks near the J.C. Napier public housing development in Nashville, as a result of a prior dispute between Starks and another individual. Both Starks’ were later arrested and charged with attempted murder, based on Wood’s statement to police.
Ivy Starks, the mother of Darryl Starks and the aunt of Calvin Starks, was aware of the shooting and the fact that Woods was to testify against her son and nephew at future court proceedings. Starks unlawfully offered Woods a bribe in the form of cash and a used Chevrolet Monte Carlo, to keep him from providing truthful testimony in court.
After agreeing to accept the bribe, Woods showed up at the Davidson County Courthouse in November 2016, in order to testify at the preliminary hearing for Darryl Starks. Ivy Starks approached him and told him that if he testified, she would not be able to guarantee his safety. Woods considered this a veiled threat and left the courthouse without testifying. Ivy Starks later gave Woods the Monte Carlo and promised cash if he provided false testimony at proceedings against Calvin Starks as well.
Woods was later arrested as a material witness and brought to court to testify in the case against Calvin Starks in December 2014. Woods provided false testimony at the hearing and subsequently was untruthful to federal agents and a federal grand jury investigating violations of federal firearms laws. As a result of this conduct, Woods was charged with lying to the grand jury and being a convicted felon in possession of firearms. His case is pending before the court.
Darryl Starks and Calvin Starks, both of Nashville, were subsequently charged with federal firearm offenses and their cases are also pending.
All defendants are presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department Gang Unit. Assistant United States Attorney Sunny A.M. Koshy is prosecuting the case.
Dominican Man Sentenced to 61 Months in Prison for Wire Fraud and Identity TheftRead the Press Release
Johnny Santiago Valdez Calderon, 24, a dual citizen of the United States and the Dominican Republic, was sentenced on March 27, 2017, to serve 61 months in prison, followed by 3 years of supervised release, for engaging in a wire fraud and identity theft scheme, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
According to testimony at a plea hearing in September 2016, Valdez Calderon discovered a technique by which he was able to submit fraudulent online claims to a Tennessee company engaged in the business of selling insurance policies on mobile telephones. By assuming the identities of customers of that company, Valdez Calderon was able to cause that company to ship approximately 2,499 replacement telephones to various addresses in the United States, from which the telephones were collected by individuals who were aiding Valdez Calderon in the scheme. The total value of the fraudulently obtained cellular telephones was approximately $1,144,783.
Valdez Calderon also was ordered to pay restitution in the amount of $1,144,783.54. He has been in custody since his arrest on September 11, 2015.
This case was investigated by the Federal Bureau of Investigation and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Byron Jones of the Middle District of Tennessee and Senior Counsel Anthony V. Teelucksingh of the U.S. Department of Justice, Computer Crimes and Intellectual Property Section are prosecuting the case.
Tennessee General Sessions Judge Charged with Attempting to Obstruct Justice through Bribery and Witness TamperingRead the Press Release
A general sessions judge was charged today in a federal criminal complaint with attempting to obstruct justice through bribery and witness tampering.
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 and Assistant Special Agent in Charge Matthew Espenshade of the FBI made the announcement.
Cason “Casey” Moreland, 59, of Nashville, was charged with obstruction of justice and witness tampering in a complaint filed in the Middle District of Tennessee. Moreland was arrested this morning and is expected to make his initial appearance later this afternoon.
“The court and criminal justice system function justly only if the public has confidence in their independence and impartiality. Abuses of power like the one charged in this case erode that confidence,” said Acting Assistant Attorney General Blanco. “Our prosecutors and law enforcement partners work diligently every day to root out corruption like that charged and to ensure the public can trust our public institutions.”
“The allegations set forth in the complaint are some of the most egregious abuses of power that I have ever seen,” said Acting U.S. Attorney Smith. “Such an abuse of power undermines the credibility of and destroys the public’s trust in the court system and strikes at the very essence of our judicial branch of government. Public corruption remains one of the highest priorities of the U.S. Attorney’s Office and the FBI and officials who engage in such behavior will always be thoroughly investigated and vigorously prosecuted.”
“Public corruption of this nature threatens the public's confidence in our judicial system and the administration of justice,” said Assistant Special Agent in Charge Espenshade. “This is why public corruption is the FBI's top criminal investigative priority. The FBI and our partner law enforcement agencies will not allow these behaviors to shake the foundations of our society.”According to the complaint, Moreland served as a general sessions judge in Davidson County, Tennessee, and allegedly violated federal anti-corruption statutes by soliciting, accepting and extorting things of value in return for performing official acts that benefitted those persons and their associates.
The criminal complaint alleges that Moreland in fact became aware of the FBI’s investigation on Feb. 1, 2017, when agents attempted to interview him. The complaint alleges that Moreland knew that an individual was a material witness in this investigation and that the witness had made statements implicating his criminal conduct.
The complaint alleges that beginning in approximately March 1, 2017, Moreland took steps to obstruct and interfere with the federal investigation by attempting to have the witness sign an affidavit recanting prior statements about Moreland.
Specifically, the complaint alleges that Moreland devised a scheme to pay several thousand dollars to the witness in exchange for changing that witness’s statements about Moreland. Moreland also conveyed his desire to orchestrate a traffic stop where the witness would be arrested for drugs that had been previously planted on the witness. To conceal his involvement in the scheme, Moreland allegedly instructed another individual to use a burner phone purchased under a fictitious name and speak through an intermediary when corresponding with the witness.
The complaint also alleges that on March 11, 2017, Moreland gave the other individual an affidavit, written as though the witness had authored it and paid the other individual $5,100 cash to insure that his fingerprints would not be on the affidavit. During subsequent conversations, the other individual told Moreland that the witness had agreed to sign the affidavit for an additional $1,000, and Moreland allegedly provided an additional $1,000 cash to pay the witness.
A criminal complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Moreland Complaint
The FBI investigated the case. Trial Attorney Lauren Bell of the Justice Department’s Public Integrity Section and Assistant U.S. Attorney Cecil Vandevender of the Middle District of Tennessee prosecuted the case.Romanian Man Pleads Guilty to Participating in International Fraud Scheme Involving Online Marketplace WebsitesRead the Press Release
A Romanian man pleaded guilty today to one count of conspiracy to commit bank and wire fraud for his participation in an international scheme involving fraudulent advertisements on online marketplaces that induced victims to send approximately $873,000 to conspirators for the purchase of various items that were not actually available for purchase, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Jack Smith of the Middle District of Tennessee.
Vlad Diaconu, 36, of Bucharest, Romania, pleaded guilty before U.S. District Judge Marvin E. Aspen of the Northern District of Illinois, who sits by designation in the Middle District of Tennessee. Diaconu was indicted in the Middle District of Tennessee in June 2015 for conspiracy to commit bank and wire fraud in connection with his participation in the online marketplace scheme. Diaconu was extradited from Romania to the Middle District of Tennessee in August 2016.
In connection with his guilty plea, Diaconu admitted that his co-conspirators fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, the co-conspirators responded with emails directing the victims to wire payments to specified bank accounts. These bank accounts were opened by members of the conspiracy, including Diaconu, who used false identities and fraudulent documents, including counterfeit passports. Specifically, twelve victims sent a total of $184,900 to accounts that were opened by Diaconu under the belief that they were purchasing the advertised vehicles, and other victims sent additional funds to bank accounts opened by co-conspirators. Diaconu and his co-conspirators subsequently sent the bulk of the victims’ funds to co-conspirators located overseas.
The FBI and the Tennessee Bureau of Investigation investigated the case. Senior Counsel Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee prosecuted the case. The Criminal Division’s Office of International Affairs also provided substantial assistance.
Romanian Man Pleads Guilty to Participating in International Fraud Scheme Involving Online Marketplace WebsitesRead the Press Release
Vlad Diaconu, 36, of Bucharest, Romania, pleaded guilty today in U.S. District Court in Nashville, to one count of conspiracy to commit bank and wire fraud, 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. Diaconu pleaded guilty for his participation in an international scheme involving fraudulent advertisments on online marketplaces that induced victims to send approximately $873,000 to conspirators for the purchase of various items that were not actually available for purchase.
Diaconu was indicted in the Middle District of Tennessee in June 2015 for conspiracy to commit bank and wire fraud in connection with his participation in the online marketplace scheme. Diaconu was extradited from Romania to the Middle District of Tennessee in August 2016.
In connection with his guilty plea, Diaconu admitted that his co-conspirators fraudulently listed vehicles for sale at online marketplaces such as eBay. When victims expressed interest in purchasing the vehicles, the co-conspirators responded with emails directing the victims to wire payments to specified bank accounts. These bank accounts were opened by members of the conspiracy, including Diaconu, who used false identities and fraudulent documents, including counterfeit passports. Specifically, twelve victims sent a total of $184,900 to accounts that were opened by Diaconu under the belief that they were purchasing the advertised vehicles, and other victims sent additional funds to bank accounts opened by co-conspirators. Diaconu and his co-conspirators subsequently sent the bulk of the victims’ funds to co-conspirators located overseas.
The FBI and the Tennessee Bureau of Investigation investigated the case. Assistant U.S. Attorney Byron M. Jones of the Middle District of Tennessee and Senior Counsel Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section and prosecuted the case. The Criminal Division’s Office of International Affairs also provided substantial assistance.
Nashville General Sessions Judge Charged with Attempting to Obstruct Justice Through Bribery and Witness TamperingRead the Press Release
Cason “Casey” Moreland, 59, of Nashville, Tenn., was charged today in a federal criminal complaint with attempting to obstruct justice through bribery and witness tampering, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and Michael Gavin, Special Agent in Charge of the Memphis Division of the FBI. Moreland is a General Sessions Court Judge in Davidson County, Tennessee.
Assistant Special Agent in Charge of the FBI, Matthew Espenshade, joined acting U.S. Attorney Smith in announcing the charges at a Noon news conference.
“The allegations set forth in the indictment set forth egregious abuses of power by a judge sitting here in Nashville,” said Acting U.S. Attorney Smith. “Such an abuse of power undermines the credibility of and destroys the public’s trust in the court system and strikes at the very essence of our judicial branch of government. Public corruption remains one of the highest priorities of the U.S. Attorney’s Office and the FBI and officials who engage in such behavior will always be thoroughly investigated and vigorously prosecuted.”
According to the complaint, on January 25, 2017, the FBI opened a criminal investigation into whether Moreland and others violated federal anti-corruption statutes, by soliciting, accepting and extorting things of value, including sexual favors and other things, from persons with whom he had close personal relationships, in return for performing official acts that benefitted those persons and their associates
The criminal complaint alleges that Moreland in fact became aware of the FBI’s investigation on February 1, 2017, when agents attempted to interview him. By that time, local media outlets had reported alleged misconduct by Moreland, including having sexual relationships with individuals, in exchange for judicial favors. These reports continued to appear in the news on a regular basis, with new allegations reported in several subsequent news reports that outlined Moreland’s relationship with Person 1. The complaint alleges that Moreland knew that Person 1 was a material witness in this investigation and that Person 1 had made statements implicating Moreland’s criminal conduct.
The complaint further alleges that beginning on or about March 1, 2017, Moreland took steps to obstruct and interfere with the federal investigation by attempting to pay Person 1 to sign an affidavit recanting prior statements about Moreland. Specifically, the complaint alleges that Moreland met with a person identified as CS-1 and devised a scheme to pay several thousand dollars to Person 1 in exchange for changing her statements about Moreland. Moreland also told CS-1 of his desire to have drugs planted on Person 1 and then orchestrate a traffic stop where the drugs would be found and Person 1 would be arrested and her credibility destroyed. Moreland later provided CS-1 with a partial tag number for Person 1’s vehicle to further the scheme.
This scheme to obstruct the investigation continued and the complaint outlines actions Moreland took to conceal his involvement, including having CS-1 purchase a burner phone in a fictitious name, to be used by Moreland when contacting CS-1. The complaint also alleges that Moreland instructed CS-1 to use another person as an intermediary when dealing with Person 1.
The complaint also alleges that on March 11, 2017, Moreland gave CS-1 an affidavit, written as though Person 1 authored it. Moreland provided CS-1 with $5100 cash and took steps to insure that his fingerprints would not be on the affidavit. Moreland also told CS-1 to get Person 1 “liquored up real good” before mentioning the affidavit. During subsequent conversations with Moreland later in the evening, CS-1 told Moreland that he had met with Person 1 and that she had flagged various portions of the affidavit that were inaccurate, but that she would agree to sign it “as-is” for an additional $1,000. Moreland agreed, and provided CS-1 with an extra $1,000 in cash later that evening.
Finally, the complaint alleges subsequent meetings and conversations between Moreland and CS-1, where further discussion of the affidavit and planning of the scheme to plant drugs on Person 1 occurred.
“The court and criminal justice system function justly only if the public has confidence in their independence and impartiality. Abuses of power like the one charged in this case erode that confidence,” said Acting Assistant Attorney General Blanco. “Our prosecutors and law enforcement partners work diligently every day to root out corruption like that charged and to ensure the public can trust our public institutions.”
“Public corruption of this nature threatens the public's confidence in our judicial system and the administration of justice,” said Matthew Espenshade, Assistant Special Agent in Charge of the FBI in Nashville.” This is why public corruption is the FBI's top criminal investigative priority. The FBI and our partner law enforcement agencies will not allow these behaviors to shake the foundations of our society.”
Moreland was arrested this morning by FBI agents and is currently in custody. He is expected to make an initial appearance before a U.S. Magistrate later this afternoon.
If convicted, Moreland faces up to 20 years’ in prison.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Cecil VanDevender and Trial Attorney Lauren Bell, of the Public Integrity Section of the Department of Justice.
A criminal complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Nashville Man Pleads Guilty to Production of Child PornographyRead the Press Release
Jarratt A. Turner, 35, of Nashville, Tennessee pleaded guilty yesterday in U.S. District Court in Nashville, to 16 counts of Production of Child Pornography and one count of Transportation of Child Pornography, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
According to testimony during the plea hearing, Turner took sexually explicit images and videos of an infant boy and toddler girl, whom he was baby-sitting, on 16 different occasions between October 2014 and May of 2015. The sexually explicit material included depictions of himself sexually molesting the two very young children, who were between the ages of 12 and 31 months during this period. Turner also distributed these images via the internet to other like-minded individuals.
Turner faces a mandatory minimum sentence of 15 years in prison and up to 500 years in prison for these crimes. Sentencing is scheduled for October 11, 2017, before U.S. District Court Judge Marvin E. Aspen.
This matter was investigated by Homeland Security Investigations, and the United States is represented by Assistant U.S. Attorney S. Carran Daughtrey.
Final Defendant Pleads Guilty in Tax Refund SchemeRead the Press Release
Israel Brito-Rodriguez, 49, of Bowling Green, Kentucky, pleaded guilty yesterday to conspiracy to defraud the United States, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
On October 14, 2015, Israel Brito-Rodriguez was indicted along with Lorenzo Brito-Rodriguez, 40, and Eydi Ioena Brito-Rodriguez, 30, also of Bowling Green, and charged with conspiring to file false federal income tax returns. The indictment also charged Israel Brito-Rodriguez with possession of a counterfeit alien registration receipt (“green card”).
According to the charging documents, between February 2014 and December 2015, one or more of the conspirators prepared and filed multiple false and fraudulent federal income tax returns, claiming refunds of more than $1,000 each. The defendants used fraudulent power of attorney documents, representing the named payees on the checks, to cash the checks and caused interstate wire transfers to be used to execute the scheme. In total, the defendants obtained more than $500,000 in proceeds from the false refund checks.
Eydi Brito-Rodriguez and Lorenzo Brito-Rodriguez previously pleaded guilty to their roles in the conspiracy. Eydi Brito-Rodriguez was sentenced to serve nine months in prison and ordered to pay restitution in the amount of $100,000.00 to the IRS. Lorenzo Brito-Rodriguez was sentenced to serve 14 months in prison and ordered to pay $492,427.71 in restitution.
Israel Brito-Rodriguez is scheduled to be sentenced on June 2, 2017, before U.S. District Judge Waverly D. Crenshaw, Jr., and faces a potential statutory maximum sentence of 5 years in prison, a $250,000 fine, and 3 years of supervised release.
The case was investigated by the IRS-Criminal Investigation and Homeland Security Investigations. Assistant U.S. Attorneys Thomas J. Jaworski and Byron M. Jones represented the United States.
Goodlettsville Man Indicted in Heroin Distribution ConspiracyRead the Press Release
Brian Wimsatt, 29, of Goodlettsville, Tennessee, was indicted by a federal grand jury yesterday and charged with conspiracy, possession and distribution of heroin, the use of which resulted in death, announced Jack Smith, Acting U.S. Attorney for the Middle District of Tennessee.
According to the indictment, on May 13, 2016, Wimsatt sold heroin to an individual who died shortly after using it. On May 17, 2016, Wimsatt was arrested by law enforcement officers and was again in possession of heroin.
Wimsatt is currently in custody and if convicted, he faces a mandatory minimum term of twenty years in prison up to life, and up to a $1,000,000 fine.
This case was investigated by the Drug Enforcement Administration; the 18th Judicial District Drug Task Force; and the Goodlettsville, Tenn. Police Department. The case is being prosecuted by Assistant U.S. Attorney Ahmed A. Safeeullah.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Federal Jury Convicts Murfreesboro Man of Smuggling Silencers into the United StatesRead the Press Release
Paul Gratton, 50, of Murfreesboro, Tenn., was found guilty today by a federal jury of delivering of a firearm to a common carrier without written notice; illegal shipment of a firearm with intent to commit a felony; illegal importation of a firearm; illegal receipt of a firearm that had been imported; and unlawful possession of unregistered silencers, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee. The jury acquitted Gratton of tampering with evidence.
The jury returned its verdict following a two-day trial before Chief U.S. District Judge Kevin H. Sharp.
The evidence at trial showed that, in the spring of 2015, Gratton, who owns a helicopter servicing business in Murfreesboro, traveled to England, where he purchased six firearm silencers, none of which had serial numbers, from a firearms dealer in Sheffield. Gratton put some of the silencer parts into a DHL package, which he deliberately mislabeled in order to ensure that those silencers got through U.S. Customs without being discovered by the authorities. Gratton put other silencer parts into his checked baggage, and flew back to Murfreesboro. Federal law enforcement officers later obtained a search warrant for Gratton’s residence, where they recovered the silencers and obtained a confession from Gratton.
Gratton faces a maximum penalty of 10 years in prison and a maximum fine of $250,000. A sentencing date has not yet been set.
The case was investigated by the Bureau of Alcohol, Tobacco Firearms & Explosives; the Rutherford County Sheriff’s Office; and the Murfreesboro Police Department. The case was prosecuted by Assistant U.S. Attorneys Ben Schrader and Ahmed Safeeullah.
Nashville Man Pleads Guilty to Conspiracy and Attempted Robbery of East Nashville Beauty Supply StoreRead the Press Release
Michael M. Thompson a/k/a Monkey Man, 35, of Nashville, Tenn., pleaded guilty yesterday in U.S. District Court, to conspiracy and attempted robbery, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Thompson also pleaded guilty to brandishing a firearm during a crime of violence and being a felon in possession of a firearm.
According to the facts presented at the plea hearing, on December 26, 2014, Thompson entered the Beauty & Beyond store located at 710 Gallatin Pike in Nashville and brandished a loaded handgun at the employees and placed the gun against a store clerk’s head while demanding money. The store clerks resisted and grappled Thompson for the gun and were eventually able to pry the gun from Thompson’s hands and held him until police officers arrived.
Thompson admitted that he was a previously convicted felon with two aggravated robbery convictions, one of which was an armed robbery of another beauty supply store; two statutory rape convictions; two felony drug-related convictions; and several felony convictions for violating state sex offender registry requirements.
The plea agreement calls for Thompson to receive a sentence of 15 years in prison when he is sentenced by U.S. District Judge Aleta Trauger on June 2, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department Gang Unit. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Brentwood Doctor and Wife Plead Guilty to Conspiring to Defraud the IRSRead the Press Release
Jeffrey Cephus McCoy, Jr. 70, and Andra McCoy, 68, of Brentwood, Tenn., pleaded guilty today to conspiracy to defraud the United States in the collection of income taxes, announced David Rivera, U.S. Attorney for the Middle District of Tennessee; Stuart Goldberg, Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division; and Tracy Montano᷉, Special Agent in Charge of the IRS-Criminal Investigation-Nashville Division.
According to the indictment, Dr. McCoy, a radiologist, provided radiological services under contracts with healthcare providers. The McCoys filed false tax returns for the years 2003‑2007 that included fictitious withholding amounts, attached false Forms 1099‑OID, and failed to report taxable income. The indictment further alleges that the McCoys submitted false documents to IRS and placed their assets in the names of nominees or in nominee bank accounts.
At the plea hearing, the McCoys admitted that from July 25, 2002, until August 13, 2014, they conspired to defraud the United States by impeding the IRS’s collection of their income taxes. The McCoy’s further admitted that they signed and filed a false tax return for the 2003 tax year that reported $439,850 in false and fictitious withholdings.
A sentencing hearing will be scheduled by the court, and, when sentenced, the McCoy’s face a potential statutory maximum sentence of five years in prison, a fine of $250,000, and three years of supervised release.
The case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Thomas J. Jaworski and Alexander R. Effendi of the Tax Division represent the United States.
Tennessee Doctor and his Wife Plead Guilty to Conspiring to Defraud the United StatesRead the Press Release
A Brentwood, Tennessee doctor and his wife pleaded guilty today to conspiring to defraud the United States, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney David Rivera for the Middle District of Tennessee.
According to the indictment, Jeffrey Cephus McCoy Jr., 70, and Andra McCoy, 68, filed 2003 to 2007 income tax returns with the Internal Revenue Service (IRS) that underreported their income and claimed fake income tax withholding amounts. The indictment further alleges that the McCoys submitted false documents to the IRS and placed their assets in the names of nominees and in nominee bank accounts.
At the plea hearing, the McCoys admitted that from July 2002 through August 2014, they conspired to defraud the United States by impeding the IRS’s collection of their income taxes. The McCoys further admitted that they filed a 2003 tax return, which falsely reported income tax withholdings of $439,850.
Sentencing dates have not been set. The McCoys face a statutory maximum sentence of five years in prison, a period of supervised release and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Rivera thanked special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Thomas J. Jaworski and Trial Attorney Alexander R. Effendi of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the divsion’s website.
Methamphetamine Dealer Sentenced to 24 Years in PrisonRead the Press Release
Brian Randall, 51, of Castalian Springs, Tennessee, was sentenced yesterday by U.S. District Judge Waverly Crenshaw, Jr., to 24 years in prison, followed by five years of supervised release, for operating a large-scale methamphetamine conspiracy, announced United States Attorney David Rivera.
Randall and seven other Middle Tennessee individuals were indicted in July 2016 and charged with various offenses relating to the meth distribution conspiracy. In addition, two other individuals from Bakersfield, California were indicted in the conspiracy in August 2016.
Evidence presented during Randall’s guilty plea and sentencing hearings established that between February 2015 and July 2016, he received numerous kilograms of methamphetamine from California through FedEx shipments and the U.S. Postal Service. Randall then mailed cash payments back to California and sold the methamphetamine to mid-level and street-level dealers for resell. Randall also possessed a number of firearms as he sold and stored methamphetamine.
Judge Crenshaw ordered Randall to serve 19 years in prison for the drug trafficking offenses and an additional 5 years for firearm offense. In addition, Randall must forfeit the firearms and any other property directly or indirectly related to his crimes in an amount of up to $2,000,000.
The remaining defendants in this case are awaiting trial and are presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Lebanon Police Department. The case is being prosecuted by Assistant U.S. Attorney Ahmed A. Safeeullah.
Nashville Man Faces Federal Charges for Sending Threats Targeting Law Enforcement OfficersRead the Press Release
Robert Ellis Waddey, 22, of Nashville, Tenn., was indicted Wednesday by a federal grand jury and charged with communicating a threat by interstate commerce and with being an unlawful user of a controlled substance in possession of firearms, announced Jack Smith, Acting U.S. Attorney for the administration of this case.
According to the indictment, 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.”
The indictment alleges that photographs found on Waddey’s phone 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….”
The indictment further alleges that Waddey sent a video of himself to another individual, which shows him shooting a high-capacity assault rifle in varying positions, as if he were training for combat and a subsequent text that read, “Police won’t even know what to think lolololololololol.” Another photograph shows Waddey sitting in his vehicle at a traffic light in South Nashville with 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. A comment posted with the photograph contained a slang threat to law enforcement.
The indictment also alleges that various text messages sent by Waddey conveyed threats toward law enforcement and indicate the pleasure he took in the number of targeted cop killings. In one text message, Waddey discusses getting high on “coke” or “molly” and his desire to go “mutder” cops.
Count two of the indictment alleges that Waddey is an unlawful user of a controlled substance and illegally in possession of 18 firearms, including 13 handguns, four assault rifles and a shotgun.
If convicted, Waddey faces up to 5 years in prison for sending threatening communications and up to 10 years in prison for illegally possessing firearms and up to a $250,000 fine on each charge.
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.
Former Tennessee Commerce Bank Executive Charged with Deceiving Federal RegulatorsRead the Press Release
Lamar Cox, 73, of Franklin, Tenn., former Chief Operating Officer and Board of Directors member of now defunct Tennessee Commerce Bank (TCB), was charged yesterday by felony Information for causing the bank to make a false statement to the Federal Deposit Insurance Corporation, announced Jack Smith, Acting U.S. Attorney for the administration of this case. TCB was closed by federal regulators on January 27, 2012, due to its failing financial condition.
According to the Information, Cox devised a scheme to deceive the FDIC by delaying reporting of the full amount of a $710,000 loss by TCB on the bundled sale of $4,000,000 in foreclosed properties. Cox sought to delay reporting the full amount of the loss so that TCB’s books would look better to federal bank examiners, who were scheduled to soon examine TCB. In order to accomplish the deception, Cox created a pre-planned and fraudulent “posting error,” causing TCB to only report $270,000 of the $710,000 loss from its sale of the foreclosed properties in the third quarter of 2009. Cox’s actions caused TCB to understate its net loss by $440,000 reported in the Call Report filed with the FDIC for the third quarter of 2009, thus concealing the true financial condition of TCB from shareholders, examiners and the public.
Cox faces up to 30 years in prison, a criminal fine of up to $1,000,000, and restitution to be determined by the Court. His sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
An Information is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP); the FDIC Office of Inspector General-Office of Investigations; and the FBI. The United States is represented by Assistant U.S. Attorney Thomas J. Jaworski.
Leader of Interstate Pill-Distribution Conspiracy Sentenced to 17 Years in PrisonRead the Press Release
Benjamin Edward Henry Bradley, 33, of Detroit, Michigan, has been sentenced to 17 years in prison, for his role as the primary supplier of tens of thousands of diverted prescription pills that were shipped from the Detroit area into Middle Tennessee, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Bradley and 17 co-defendants were indicted on March 11, 2015, and charged with conspiracy to distribute, and possess with intent to distribute, Schedule II controlled substances, including Oxycodone and Oxymorphone. Bradley and two co-defendants were also charged with conspiracy to commit money laundering.
The charges stemmed from a multi-year investigation conducted by local, state, and federal law enforcement agencies. That investigation, which included the use of wiretap interceptions, revealed that Bradley, who worked at a hospital in Detroit, regularly bought up large quantities of diverted pills from a variety of sources, and sent them to Tennessee through the mail or by paying co-conspirators to deliver them. The conspirators then laundered the proceeds by making cash deposits in Tennessee into bank accounts controlled by Bradley in Detroit.
On June 8, 2016, Bradley pleaded guilty to both charges. At the sentencing hearing on February 1, 2017, U.S. District Judge Aleta A. Trauger found that Bradley was a leader of a drug-trafficking organization that dated back to 2009 and involved the distribution of tens of thousands of pills. Bradley’s 17-year prison sentence will be followed by three years of supervised release.
This extensive investigation was conducted by the Drug Enforcement Administration; the IRS-Criminal Investigation; the Bureau of Alcohol, Tobacco, Firearms & Explosives; the FBI; the Tennessee Bureau of Investigation; the Rutherford County, Tenn. Sheriff’s Dept.; the Smyrna, Tenn. Police Dept.; the Mt. Juliet, Tenn. Police Dept.; the 20th Judicial District Drug Task Force; the Michigan State Police; the Brighton, Mich. Police Dept.; and the Clinton township, Mich. Police Dept. Assistant United States Attorneys Cecil VanDevender and Brent Hannafan prosecuted the case.
Tennessee Man Indicted for Aggravated Identity TheftRead the Press Release
George Ronzell Fyke, 40, of Woodlawn, Tenn., was indicted yesterday by a federal grand jury in Nashville, Tenn., for aggravated identity theft and stealing government funds, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Fyke was charged with five counts of aggravated identity theft and five counts of theft of government funds.
According to the indictment, Fyke used the identities of deceased individuals to file false federal income tax returns. As a result of these fraudulent tax filings, it is alleged that Fyke caused the Department of Treasury to issue federal income tax refunds, which he stole and converted to his own use.
Fyke faces a mandatory term of two years in prison for each aggravated identity theft conviction and a maximum term of ten years in prison for each theft of government funds conviction. Fyke also faces fines of up to $250,000.
The case was investigated by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Ryan R. Raybould of the Middle District of Tennessee and Trial Attorney Gregory P. Bailey of the Tax Division are prosecuting the case on behalf of the United States.
An indictment is merely an accusation and is not evidence of guilt. Defendants are presumed innocent unless and until proven guilty in a court of law.
Former Rutherford County Sheriff's Major Pleads Guilty to Unlawfully Obtaining U.S. CitizenshipRead the Press Release
Terry McBurney, 47, of Murfreesboro, Tenn., and former Major with the Rutherford County Sheriff’s Department, pleaded guilty today in U.S. District Court to charges of unlawful procurement of naturalization; making false statements under oath in matters relating to his application for U.S. citizenship and naturalization status; and wire fraud, announced Jack Smith, Acting U.S. Attorney for the administration of this case. These charges arose from an indictment returned by a federal grand jury in November 2016.
According to the indictment, McBurney was born in Ireland. In September 2010 McBurney submitted an application for employment to the Rutherford County Sherriff’s Office and also submitted a completed Department of Homeland Security Form I-9, Employment Verification Eligibility. Both documents were marked indicating that McBurney was a United States citizen. In December 2010 McBurney submitted an application to the Tennessee Peace Officer Standards and Training (POST) Commission that was also marked indicating that he was a United States citizen. During the plea hearing, McBurney admitted that he was not in fact a United States citizen.
McBurney obtained Tennessee POST certification in May 2011which made him eligible to receive a $600 per year pay supplement and he received supplemental payments of $600 in 2013, 2015, and 2016. In 2013, McBurney was promoted to the position of captain in the Rutherford County Sheriff’s Office and on or about January 18, 2016, McBurney was again promoted, this time to the position of major. Rutherford County required individuals holding the position of captain or major to meet a number of requirements, including being a United States citizen. McBurney also admitted during the plea hearing, that he was not a United States citizen at this time.
The indictment further alleged that McBurney submitted an application for naturalization to seek status of a United States citizen in September 2015 and participated in an interview regarding the application in December 2015. On the application and during an interview with an immigration officer of the U.S. Citizenship and Immigration Services, McBurney denied that he had ever claimed to be a United States citizen in writing or any other way. On February 24, 2016, McBurney took the oath of allegiance and was naturalized as a United States citizen. McBurney admitted that he in fact made false statements in order to procure U.S. citizenship.
McBurney will be sentenced on May 12, 2017. He faces up to 10 years in prison for unlawful procurement of naturalization or citizenship, up to 5 years for making a false statement under oath in a matter relating to naturalization, and up to 20 years in prison for wire fraud. McBurney also faces a $250,000 fine for each charge and possible revocation of his U.S. citizenship.
This case was investigated by ICE- Homeland Security Investigations and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Amanda J. Klopf is prosecuting the case.
Final Defendant Pleads Guilty in Rutherford County JailCigs InvestigationRead the Press Release
John Vanderveer, 59, of Marietta, Georgia, pleaded guilty today in United States District Court to federal charges of obstruction of justice, announced Jack Smith, Acting U.S. Attorney for the administration of this case.
Vanderveer was indicted in May 2016 along with his nephew, Robert Arnold, the former Sheriff of Rutherford County and former Chief Administrative Deputy, Joe L. Russell II, for their roles in the formation and operation of JailCigs, LLC. The indictment alleged that the defendants enriched themselves by selling electronic cigarettes, through JailCigs, LLC, to inmates at the Rutherford County jail, while concealing and misrepresenting Arnold and Russell’s ownership of the business, and paying Arnold commission payments that were in fact owed to Rutherford County.
In the hearing before Chief U.S. District Judge Kevin H. Sharp, Vanderveer admitted that he, along with Robert Arnold and Joe Russell II, formed JailCigs, LLC on October 3, 2013, and created a business plan wherein they would sell electronic cigarettes to inmates confined to the Rutherford County Jail and market the products to other jails throughout the country. Vanderveer also admitted that he later told the Tennessee sales representative for JailCigs to destroy her commission sheets so the company could provide fraudulent versions that would show the payments going to her, rather than to Sheriff Arnold. Vanderveer also admitted that he received $49, 545.50 from the sale of JailCigs to inmates at the Rutherford County Jail.
Under the terms of the plea agreement, the recommended guideline range is 18-24 months in prison. Vanderveer will also pay restitution to Rutherford County in the amount of $52,500. Vanderveer will be sentenced on May 19, 2017.
Arnold and Russell have pleaded guilty to wire fraud, honest services fraud, and extortion under color of official right and are awaiting sentencing.
This case was investigated by the Tennessee Bureau of Investigation and the FBI. Assistant U.S. Attorney Cecil W. VanDevender of the Middle District of Tennessee and Trial Attorney Mark Cipolletti of the Department of Justice’s Public Integrity Section are prosecuting the case.
Franklin Insurance Agent Sentenced to Prison for Stealing over $100,000 from Elderly ClientRead the Press Release
Scott Rolin, 56, of Franklin, Tenn., and former insurance agent, was sentenced today by U.S. District Judge Waverly D. Crenshaw, Jr., to 18 months in prison, followed by 3 years of supervised release, for stealing over $100,000 from his elderly client, announced United States Attorney David Rivera.
“Rolins used his position of trust to exploit a vulnerable woman and steal her life savings,” said United States Attorney Rivera. “It is my hope that the sentenced imposed today sends a clear message that victimization of elderly citizens will be thoroughly investigated, swiftly prosecuted and fairly punished.”
Evidence set forth during Rolin’s guilty plea and sentencing hearing established that he was a licensed insurance broker who owned and operated a Franklin, Tenn.-based insurance agency, Steele Rolin Co. In 2010, he sold two annuity policies worth over $175,000 to one of his existing clients, an elderly widow and former employee of the United States Postal Service.
The evidence also established that Rolin took numerous steps to engender the victim’s trust, including visiting her home, attending family events, referring to her as “mother” and sending her Mother’s Day cards.
Between 2011 and 2015, Rolin made numerous withdrawals from the victim’s accounts without her knowledge or authorization. In order to take the victim’s money, Rolin sent fraudulent disbursement requests to the company that issued the annuity policies, forged the victim’s signature on the resulting checks and deposited the money into his personal and business accounts. He used the embezzled funds to pay various personal expenses. In sum, Rolin stole over $100,000 of the victim’s money over a three-year period.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Henry C. Leventis.
Ranking Nashville Gang Member Pleads Guilty to Gun and Robbery ChargesRead the Press Release
Deunta Finch aka LT, 27, of Nashville, Tennessee, pleaded guilty yesterday in U.S. District Court to being a felon in possession of a firearm and ammunition; attempting to commit a robbery affecting interstate commerce; and to possessing and discharging a firearm in that attempted robbery, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
According to the statement of facts, Finch was a ranking member of the Athens Park Bloods street gang and had multiple, previous state felony convictions, including two convictions for being a felon in possession of firearms, a conviction for robbery and a conviction for reckless endangerment with a weapon. As a convicted felon, Finch was prohibited from possessing firearms or ammunition.
The statement of facts outlines that on June 21, 2015, Finch brandished a firearm and stole another firearm from a juvenile, while in the J.C. Napier public housing development. Two days later, Finch was riding in a car with another juvenile and became involved in a shootout with the occupants of another vehicle. Finch was injured in the shootout, but left the scene and was later located and transported to a local hospital for treatment. After treatment, he was arrested on outstanding state warrants and then bonded out of custody. Finch failed to appear in court as required and was arrested by Metro Nashville SWAT officers in another car on November 12, 2015. A 9mm pistol was recovered from the glove compartment of that car during this arrest. Ballistics evidence revealed that the recovered firearm had been used one week earlier, on November 5, 2015, in a drug related shooting, in which Finch robbed a drug dealer in the Lexington Garden Apartments in Madison, Tennessee. His intended victim resisted, and Finch shot and severely wounded the victim. Finch then left the area with a quantity of cocaine which he took from his victim.
The plea agreement calls for Finch to be sentenced to 15 years in prison, to be followed by five years of supervised release. Finch will be sentenced on May 15, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department, Gang Division. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Murfreesboro Woman Sentenced to Prison for Stealing Identities to File False Tax ReturnsRead the Press Release
Melinda Boisseau, 37, of Murfreesboro, Tenn, was sentenced on January 19, 2017, to two years in prison, followed by two years of supervised release, for filing false tax returns in the names of other individuals, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Boisseau pleaded guilty on May 10, 2016 to charges of aggravated identity theft and filing false claims in tax returns. Boisseau was also ordered to pay restitution to the IRS in the amount of $53,289.
According to the statement of facts, between June 2010 through February 2011, Boisseau used stolen personal identification information, along with fake employer and wage information, to file as many as 66 fraudulent tax returns.
This case was investigated by the Internal Revenue Service - Criminal Investigation. Assistant U.S. Attorney Stephanie N. Toussaint prosecuted the case.
South Nashville Man Sentenced to 16 Years in PrisonRead the Press Release
Reco Allen Jones a/k/a Bon Jovi, 29, of Nashville, Tenn., was sentenced yesterday to 16 years in prison, to be followed by three years supervised release, for possession of cocaine with intent to distribute, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Jones pleaded guilty to these charges on September 27, 2016.
“The U.S. Attorney’s Office will continue our partnership with the Nashville Metropolitan Police Department and the ATF, as we direct resources aimed at reducing crime and improving the quality of life for our citizens who live in public housing areas,” said U.S. Attorney David Rivera. “The residents of these communities deserve to live in a place where it is safe for their children and we will continue to prosecute those who choose to commit federal crimes and endanger residents in and around these communities.”
According to the statement of facts, on May 11, 2015, officers with the Metropolitan Nashville Police Department were working in the J.C. Napier public housing development, near Cameron Middle School, and attempted to stop the driver of an Acura SUV for a traffic violation. The driver of the vehicle fled from the officers and reached speeds near 100 miles per hour, weaving in and out of traffic. While being pursued, the driver threw a bag of cocaine out of the vehicle and then pulled into a parking lot, and discarded about $1,570 in cash. The driver was subsequently identified as Reco Jones and arrested.
Jones’ prior criminal record qualified him as a career offender under federal law. His prior convictions included two convictions for evading arrest by motor vehicle, as well as multiple felony drug convictions, and a conviction for aggravated assault. Jones was on state probation for his aggravated assault conviction as well as for a felony drug sale at the time he committed this crime.
Federal law includes substantial penalty enhancements for committing drug felonies in specially protected areas such as near schools, playgrounds, and public housing developments.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Metropolitan Nashville Police Department, Gang Division. The case is being prosecuted by Assistant United States Attorneys Sunny A.M. Koshy and Henry Leventis.
Rutherford County, Tennessee SheriffRead the Press Release
Robert F. Arnold, 40, the suspended Sheriff of Rutherford County, pleaded guilty today in United States District Court to federal charges of fraud and corruption, announced Jack Smith, Acting U.S. Attorney for the administration of this case.
“Today, Robert Arnold admitted his guilt and participation in the brazen criminal scheme charged in the indictment brought against him by the grand jury,” said Acting U.S. Attorney Jack Smith. “His guilty pleas hold him accountable for his criminal conduct and we look forward to the sentencing hearing in this matter. I would like to thank the Tennessee Bureau of Investigation and the FBI for their extraordinary work in investigating this case. I’d also like to thank District Attorney General Jennings Jones for his assistance and cooperation, as well as the Department of Justice’s Public Integrity Section, who partnered with us on the prosecution of this case. As I have said in the past, the conduct of Arnold is in no way representative of the fine and often heroic work done daily by the law enforcement officers in our district. Finally, let me thank the citizens of Rutherford County for their patience while waiting for justice to be served in this case.”
Arnold was indicted in May 2016 along with his former Chief Administrative Deputy, Joe L. Russell II, 49, and Arnold’s uncle, John Vanderveer, 58, of Marietta, Georgia, for their roles in the formation and operation of JailCigs, LLC. The indictment alleged that the defendants enriched themselves by selling electronic cigarettes, through JailCigs, LLC, to inmates at the Rutherford County jail, while concealing and misrepresenting Arnold and Russell’s ownership of the business, and paying Arnold commission payments that were in fact owed to Rutherford County.
In the hearing before Chief U.S. District Judge Kevin H. Sharp, Arnold admitted to forming JailCigs with Russell and Vanderveer in 2013; admitted that he used his official position as Sheriff of Rutherford County to benefit JailCigs by allowing its products to come into the Rutherford County jail and be distributed by county employees; admitted to taking steps to disguise his involvement in the company; admitted to misrepresenting the benefits that Rutherford County was supposedly receiving; admitted that he personally received over $66,000 from JailCigs; and admitted that he lied about his income from, and knowledge of, the company when he was confronted by local media in April 2015.
Arnold pleaded guilty to wire fraud, honest services fraud, and extortion under color of official right. Each of the crimes of conviction carries a maximum of up to 20 years in prison. Under the terms of the plea agreement, Arnold agrees to pay restitution in the amount of $52,500 to Rutherford County. The plea agreement does not contain any agreement between the parties as to what the appropriate sentence should be.
“This plea is the result of the hard work by the men and women of the FBI and our law enforcement partners,” said Michael T. Gavin, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. “We all rely on those who hold positions of public trust to execute their duties with integrity and in the best interests of the public. The FBI will continue to work with its partners to identify and investigate law enforcement officers who violate the law out of personal greed, which harms the reputations of all law enforcement officers, the majority of which are honest, hardworking men and women who serve with honor, integrity, and professionalism.”
“It's always disheartening when an elected official abuses the public's trust, especially someone sworn to uphold the law,” said TBI Director Mark Gwyn. “We are grateful for the cooperation we have with our state and federal partner agencies in pursuing justice in this case and hope today’s plea serves as a reminder to elected officials, of all types, that they are not above the law.”
Arnold will be sentenced by Chief Judge Sharp on May 8, 2017.
This case was investigated by the Tennessee Bureau of Investigation and the FBI. Assistant U.S. Attorney Cecil W. VanDevender of the Middle District of Tennessee and Trial Attorney Mark Cipolletti of the Department of Justice’s Public Integrity Section are prosecuting the case.Michigan Man Sentenced to Prison ForRead the Press Release
Troy Mitchell McCormick, 51, of Commerce Township, Michigan, was sentenced yesterday to serve 46 months in prison, announced Jack Smith, Acting United States Attorney for the administration of this case. U.S. District Court Judge Marvin E. Aspen also sentenced McCormick to serve 3 years of supervised release and to pay restitution of $107,586.
In March 2016 McCormick pleaded guilty to mail fraud and wire fraud. These charges arose from his conduct while employed as a sales representative and vice president for Emdeon, a Nashville, Tenn. based company that provided services to hospitals and health systems. McCormick admitted that he fraudulently fabricated contracts between his employer and certain customers, including a non-profit hospital, a non-profit hospital system, and the University of Michigan, and that he forged signatures on these contracts. As a result of McCormick’s forged contracts, these customers were billed inflated amounts, and McCormick received $107,586 in additional incentive compensation.
This case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Cecil W. VanDevender and William F. Abely.
Clarksville Men Sentenced in Drug Distribution ConspiracyRead the Press Release
Three Clarksville, Tennessee men were sentenced yesterday in connection with their involvement in a major drug distribution conspiracy in the Clarksville, Tenn. area between 2013 and 2015, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. All were indicted in October 2015 after an investigation by multiple law enforcement agencies.
U.S. District Judge Billy Roy Wilson imposed the following sentences:
- Lloyd Montgomery, 57, the leader of the conspiracy, was sentenced to 240 months in prison to be followed by six years of supervised release. Montgomery pleaded guilty in August 2016 to conspiracy to distribute Oxymorphone and Oxycodone; 12 counts of distribution of Oxymorphone and/or Oxycodone; and two counts of unlawful possession of a firearm by a convicted felon.
- Brian Merriweather, 45, was sentenced to 216 months in prison to be followed by six years of supervised release. Merriweather was convicted after a jury trial of conspiracy to distribute Oxymorphone and Oxycodone, and two counts of distribution of Oxymorphone.
- Dominique Lucas, 28, was sentenced to 180 months in prison to be followed by six years of supervised release. Lucas pleaded guilty in July 2016 to conspiracy to distribute Oxymorphone and Oxycodone, and to two counts of distribution of Oxymorphone.
A fourth individual, Charles Arthur Reeves, III, 54, also of Clarksville, Tenn., and a previously convicted felon, was also indicted as a result of this investigation, after selling a firearm to a confidential informant. Reeves pleaded guilty in October 2016 to being a convicted felon in possession of a firearm was sentenced yesterday to 60 months in prison to be followed by three years of supervised release.
The government’s evidence showed that, between 2013 and 2015, Montgomery was the leader of an extensive pill distribution network that included Merriweather and Lucas. This network illegally distributed thousands of prescription pills in the Clarksville, Tenn. area. The government’s evidence also showed that Montgomery illegally sold firearms as part of this operation, and that sellers in Montgomery’s network traded pills for a variety of stolen items and sponsored visits to doctors’ offices for the purpose of illegally obtaining prescription pills for resale.The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, & Explosives, the Drug Enforcement Administration, the 19th Judicial District Drug Task Force, the Montgomery County Sheriff’s Office, the Clarksville Police Department and the Tennessee Department of Correction-Probation and Parole. The case was prosecuted by Assistant U.S. Attorneys Ben Schrader and Brent Hannafan.
Former Director of Child and Adult Care Food Program Sponsor Agency Pleads Guilty to $1.5 Million FraudRead the Press Release
LaShane Hayes, 44, of La Vergne, Tennessee, pleaded guilty today to conspiracy and wire fraud after being charged with defrauding the United States Department of Agriculture’s Child and Adult Care Food Program (CACFP) through her sponsor agency, All About Giving, Inc., announced David Rivera, United States Attorney for the Middle District of Tennessee.
The Child and Adult Care Food Program was created 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, among other things, 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 child care providers.
According to the charging document and plea agreement, between March 2015 and July 2016, Hayes made monthly CACFP reimbursement requests to the Tennessee Department of Human Services knowing that these requests overstated the number of providers enrolled in CACFP through All About Giving; overstated the number of meals served to children by All About Giving providers and, therefore, caused the State of Tennessee to deposit more money into All About Giving’s bank account than All About Giving and its providers were entitled to receive.
During the same time frame, Hayes and her co-conspirators created fictitious provider records which, among other things, overstated the number of meals served to children and listed fictitious children’s names in an effort to create the appearance that All About Giving’s monthly reimbursement requests to the Tennessee Department of Human Services were accurate. Hayes and her co-conspirators also created fictitious provider lists which included individuals who were not providing any child care and physical addresses which do not exist. Hayes also wrote checks from All About Giving’s bank accounts to alleged child care providers in an effort to create the appearance that she was distributing meal reimbursement money to child care providers, however, after receiving these checks, many of the alleged providers would cash them and return a portion of the money they received to Hayes. Over $1.5 million of CACFP funds was defrauded by Hayes and her co-conspirators.
Hayes faces up to 20 years in prison and a $250,000 fine. She will be sentenced by U.S. District Judge Aleta Trauger on April 12, 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 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.
Middle Tennessee Podiatrist Pleads Guilty to Health Care FraudRead the Press Release
Dr. Charlton Peter, 59, of Lewisburg, Tenn., pleaded guilty yesterday to two counts of health care fraud, announced David Rivera, United States Attorney for the Middle District of Tennessee.
In a plea hearing before U.S. District Judge Waverly D. Crenshaw, Jr., Peter, a podiatrist, admitted that he submitted claims to Medicare and Medicaid seeking reimbursement for procedures that were never performed. In particular, Peter admitted that he submitted false claims seeking reimbursement for performing nail avulsions, a procedure covered by Medicare, when he merely provided his patients with routine foot care, including clipping patients’ toenails, which is not covered by Medicare.
If convicted, Peter faces up to 10 years in prison and a $250,000 fine for each count of health care fraud. Peter will also be ordered to forfeit $122,691 representing the proceeds from his fraud. Peter will be sentenced by Judge Crenshaw on March 3, 2017and his sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
The case was investigated by the Department of Health and Human Services – Office of Inspector General, the Tennessee Bureau of Investigation Medicaid Fraud Unit. The United States is represented by Assistant U.S. Attorney Thomas J. Jaworski.
Former Payroll Specialist at Brentwood-Based Human Resources Company Charged with Wire Fraud and Identity TheftRead the Press Release
Kristen Morrison, 44, of Lascassas, Tennessee, was indicted Ton November 30, 2016, by a federal grand jury and charged with eight counts of wire fraud and two counts of aggravated identity theft, in relation to her role as a payroll specialist with Century II, a personnel and human resources company based in Brentwood, Tennessee, announced David Rivera, United States Attorney for the Middle District of Tennessee.
The indictment alleges that between March of 2014 and May of 2016, Morrison created new direct deposit accounts and pay cards for former and nonexistent employees of Century II’s customer, Absolute Wireless. The indictment further alleges that Morrison caused payroll payments to be made from Absolute Wireless to the pay cards that she created and then used those pay cards for her personal benefit.
If convicted, Morrison faces up to 20 years in prison and a fine of up to $250,000. The indictment also seeks forfeiture of $213,449.91
An indictment is merely an accusation and is not evidence of guilt. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Henry Leventis.
Two Men Convicted on 31 Counts of Conspiracy, Computer Access Fraud and Wire FraudRead the Press Release
Chris Suhail Folad, 37, of Franklin, Tenn., and Khaled Nabil Abdel Fattah, 38, of Antioch, Tenn. were convicted today by a federal jury, after a 3-day trial, of conspiracy to commit computer access fraud and wire fraud as well as 19 individual counts of computer access fraud and 11 counts of wire fraud, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
According to the proof at trial, between January 2009 and March 2010, Folad and Fattah used passwords to a local company’s ATM machines to alter the denomination distribution amounts to lead the machines to believe they were dispensing $1 bills, when, in fact, the machines were dispensing $20 bills. The company, Safe Cash Systems, LLC. (Safe Cash) based in Nashville, places machines in convenience stores, bars and restaurants throughout Nashville. Safe Cash’s machines only carry $20 bills. Defendant Folad previously worked at Safe Cash as an ATM technician and knew the passwords needed to change the denomination distribution amounts.
The trial proof showed that after the denomination distribution amounts were changed, the defendants would receive 20 times more cash from the machines than the amount that was debited from their bank accounts. During a 14-month period, Folad and Fattah made over 800 withdrawals from Safe Cash ATMs, making as many as 20 ATM withdrawals in a single day. The defendants used nine bank accounts and 17 bank cards to perpetrate their fraud and stole over $600,000 from Safe Cash.
Folad and Fattah are scheduled to be sentenced on March 6, 2017, and face up to twenty years in prison.
This case was investigated by the United States Secret Service. The case is being prosecuted by Assistant United States Attorneys Henry C. Leventis and Thomas Jaworski.
Rutherford County Sheriff’s Major Charged with Unlawfully Obtaining U.S. CitizenshipRead the Press Release
Terry McBurney, 47, of Murfreesboro, Tenn., and a Major with the Rutherford County Sheriff’s Department, was indicted by a federal grand jury yesterday, on charges of unlawful procurement of naturalization; making false statements under oath in matters relating to his application for U.S. citizenship and naturalization status; and wire fraud, announced Jack Smith, Acting U.S. Attorney for the administration of this case.
According to the indictment, McBurney was born in Ireland. In September 2010 McBurney submitted an application for employment to the Rutherford County Sherriff’s Office and also submitted a completed Department of Homeland Security Form I-9, Employment Verification Eligibility. Both documents were marked indicating that McBurney was a United States citizen. In December 2010 McBurney submitted an application to the Tennessee Peace Officer Standards and Training (POST) Commission that was also marked indicating that he was a United States citizen. In fact, he was not a United States citizen.
McBurney obtained Tennessee POST certification in May 2011which made him eligible to receive a $600 per year pay supplement and he received supplemental payments of $600 in 2013, 2015, and 2016. In 2013, McBurney was promoted to the position of captain in the Rutherford County Sheriff’s Office and on or about January 18, 2016, McBurney was again promoted, this time to the position of major. Rutherford County required individuals holding the position of captain or major to meet a number of requirements, including being a United States citizen. The indictment alleges that McBurney was not a United States citizen at this time.
The indictment further alleges that McBurney submitted an application for naturalization to seek status of a United States citizen in September 2015 and participated in an interview regarding the application in December 2015. On the application and during an interview with an immigration officer of the U.S. Citizenship and Immigration Services, McBurney denied that he had ever claimed to be a United States citizen in writing or any other way. On February 24, 2016, McBurney took the oath of allegiance and was naturalized as a United States citizen.
If convicted, McBurney faces up to 10 years in prison for unlawful procurement of naturalization or citizenship, up to 5 years for making a false statement under oath in a matter relating to naturalization, and up to 20 years in prison for wire fraud. McBurney also faces a $250,000 fine for each charge and possible revocation of his U.S. citizenship.
This case was investigated by ICE- Homeland Security Investigations and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Amanda J. Klopf 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.
Two Nashville Men Plead Guilty to Gun and Drug CrimesRead the Press Release
George Ivory aka GI, 27, and Anthony Laquesha Coleman aka Scrappy, 30, both of Nashville, Tenn., pleaded guilty today to gun and drug offenses which they committed in the area of 16th Avenue North and Buchanan Street in North Nashville, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
George Ivory admitted that he was selling crack cocaine in that area on May 1, 2015, when he and another drug dealer got into a verbal dispute about who could sell drugs in that area. During that argument, a 62-year-old man tried to buy about $60 of crack cocaine from the other drug dealer. Ivory demanded that the man buy crack from him instead, but the man declined. Ivory then struck that man and his female companion with a gun and demanded the man’s money. Ivory then shot the man three times, with at least one shot striking him in the head. Ivory then fled the area and threw the firearm into the Cumberland River. The victim survived, but was blinded and suffers from other serious long term health effects.
Ivory was later arrested and charged federally with committing a robbery affecting interstate commerce, discharging a firearm during a violent or drug related felony, possessing ammunition as a felon, and possession of cocaine with intent to distribute. Ivory’s previous felony convictions include two state convictions in 2010 for facilitation of second degree murder and sexual battery without consent. Ivory has entered into a plea agreement which calls for a sentence of 25 years in prison. There is no parole from federal sentences.
An investigation into Ivory’s conduct led to federal charges against Anthony Laquesha Coleman aka Scrappy. Coleman pleaded guilty to being a felon in possession of a firearm and possession of cocaine with intent to distribute. According to the statement of facts, Coleman was selling crack cocaine near a residence located in the 16th Avenue North and Buchanan Street area of Nashville on March 23, 2015. The person who lived in that home asked Coleman not to sell drugs around her house. Coleman began arguing with that woman and one of her female friends. Coleman then obtained a loaded pistol from one of his friends and continued threatening the women. He eventually went into a rooming house across the street. One of the women called police for assistance and reported that children were in the area during this incident. Metro Nashville police officers responded and arrested Coleman, who had attempted to discard the gun and drugs.
Coleman has also entered into a plea agreement which calls for a sentence of 20 years in prison, since Coleman’s prior felony convictions make him a Career Offender under federal law.
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 Attorneys Sunny A.M. Koshy and Ahmed Safeeullah.
Director of All About Giving, Inc. Charged with Conspiracy and FraudRead the Press Release
LaShane Hayes, 43, of La Vergne, Tennessee, was charged in a criminal information today with conspiracy and wire fraud in relation to her role as the director of All About Giving, Inc., a sponsor agency in the United States Department of Agriculture’s Child and Adult Care Feeding Program (CACFP), announced David Rivera, United States Attorney for the Middle District of Tennessee.
The CACFP was created 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 were responsible for, among other things, 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 these child care providers.
The charging document alleges that Hayes, as a program sponsor, and her co-conspirators defrauded the program in a number of ways, including by overstating the number of All About Giving providers who actually furnished meals to children and by overstating the number of children who received meals from All About Giving providers in order to receive more program funds from the Tennessee Department of Human Services. The total amount of CACFP funds provided to All About Giving between February 2015 and July 2016 by the Tennessee Department of Human Services was $2,198,647.93.
If convicted, Hayes faces up to 20 years in prison and a fine of up to $250,000. She also faces forfeiture of the proceeds of her offenses.
Former "Living the Dream" Executive Director Sentenced in Fraud SchemeRead the Press Release
Wendy Askins, 55, of Red Boiling Springs, former Executive Director for the Upper Cumberland Development District (UCDD), was sentenced today by U.S. District Judge Aleta A. Trauger to 18 months in prison, followed by two years of supervised release, for misusing the organization’s funds, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Judge Trauger also ordered Askins to pay $233,000 in restitution.
Askins was previously charged in a 12-count superseding indictment charging conspiracy, bank fraud, embezzlement, and making false statements. Askins pleaded guilty on August 30, 2016, to theft of Federal program funds.
The fraudulent scheme was carried out from March 2010 through February 2012. During that period, Askins purchased a property outside of Cookeville, Tennessee which she named Living the Dream. Askins used funds belonging to UCDD and its sister agencies, including the Cumberland Regional Development Corporation (CRDC) and the Cumberland Area Investment Corporation (CAIC), to renovate the home. Living the Dream was to serve as an assisted living facility for senior citizens, however, Askins and her daughter moved into the property and made luxurious upgrades to their residential wings.
Askins also set up a company called L.A. Management to operate the senior living facility. In order to hide her wrongdoing, Askins directed employees to falsify the minutes of the board of director’s meetings. At other times, Askins lied about the circumstances of the fake board minutes.
According to court documents, Askins carried out the scheme with co-defendant Larry Webb, who previously pleaded guilty on August 17, 2015. Webb is scheduled to be sentenced on November 14, 2016.
The case was investigated by the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigation Division; the U.S. Department of Commerce, Office of Inspector General; the U.S. Health and Human Services, Office of Inspector General; and the U.S. Housing and Urban Development, Office of Inspector General. The United States was represented by Assistant U.S. Attorneys Stephanie N. Toussaint and William F. Abely.