Middle District of Tennessee
Press releases recorded for this federal judicial district.
Brentwood Man Pleads Guilty to Bankruptcy FraudRead the Press Release
Michael Ross Smith, 44, of Brentwood, Tenn., pleaded guilty today to making a false material statement under oath in a bankruptcy case, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
During the plea hearing, Smith acknowledged that he filed for bankruptcy and then committed bankruptcy fraud by providing false testimony, under oath, during an examination conducted by the U.S. Trustee. Smith falsely testified that he was no longer employed by a Nashville business at the time of the examination. Subsequently, the United States Trustee discovered that Smith continued to be employed by the business as the President of Sales, earning an annual base salary of $150,000.
Bankruptcy fraud carries a maximum penalty of 5 years in prison and a $250,000 fine. Smith will be sentenced on August 5, 2015.
The U.S. Trustee Program is the component of the Department of Justice that protects the integrity of the bankruptcy system by overseeing case administration and litigation to enforce the Bankruptcy Code.
This investigation was conducted by the FBI with assistance from the U.S. Trustee. The government is represented by Assistant U.S. Attorney Stephanie N. Toussaint and Special Asst. U.S. Attorney Lloyd E. Mueller.
Harrisburg Man Federally Indicted for Drug and Firearm OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Tyler Brookin-Jones, 24, of Harrisburg, Pennsylvania, was indicted by a federal grand jury in Harrisburg. The indictment charges Brookin-Jones with distribution of a controlled substance and possession of a firearm by a convicted felon.
According to United States Attorney Peter Smith, the charges against Brookin-Jones are a result of allegations that Brookin-Jones distributed cocaine base, also known as “crack cocaine,” on two occasions in Harrisburg in April of 2015. Law enforcement officers later found Brookin-Jones in possession of a stolen firearm.
This case is being investigated by the Federal Bureau of Investigation and the Harrisburg Bureau of Police. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Nashville Man Pleads Guilty to Armed Bank RobberyRead the Press Release
Kershawn Globe, aka Memphis, 36, of Nashville, Tenn., pleaded guilty yesterday to armed bank robbery and use of a firearm during a federal crime of violence, announced David Rivera, United States Attorney for the Middle District of Tennessee. Globe robbed the 5/3 Bank on East Thompson Lane in Nashville, Tenn. on August 2, 2014.
According to the statement of facts, Globe robbed the bank of $6,511.00 at gunpoint, then escaped from police, carjacked a minivan, and eventually met up with his sister, who drove him away. Globe was captured on August 7, 2014, in Memphis, Tennessee.
Under the terms of his plea agreement with the government, Globe will serve 18 years for the bank robbery, followed by seven additional years for the firearm charge, for a combined total of 25 years in prison. There is no parole in the federal system.
Globe’s sentencing is set for October 30, 2015, before United States District Judge Kevin Sharp.
This case was investigated by the FBI Violent Crime Task Force and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Lee Deneke prosecuted the case.
Former Woodbury Police Chief Pleads Guilty to Theft of Federal Grant FundsRead the Press Release
Kevin Mooneyham, 47, former Chief of Police for the City of Woodbury, Tennessee, pleaded guilty today before Chief U.S. District Judge Kevin H. Sharp, to theft of federal program funds, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Mooneyham was indicted on April 22, 2015.
During the plea hearing, Mooneyham admitted that, from January 2013 through February 2015, while acting in his official capacity as the Woodbury Police Chief, he submitted fraudulent timesheets for more than $28,000 in overtime hours that he had not in fact worked. The funds used to pay the false overtime hours claimed by Mooneyham were derived from federal grants provided by the National Highway Traffic Safety Administration through the Governor’s Highway Safety Office, specifically for the purpose of enhanced alcohol enforcement efforts.
Mooneyham also admitted during the plea hearing that he misrepresented to other officers of the Woodbury Police Department that federally-funded overtime was not available, despite the fact that he had been submitting and continued to submit timesheets for such overtime on his own behalf. Mooneyham further disclosed that he had misrepresented to a Town of Woodbury official that he had received a large percentage of federally-funded overtime pay because no other officers of the Woodbury Police Department were willing to perform the overtime patrols. In fact, numerous Woodbury Police officers had expressed an interest in performing such overtime patrols.
Mooneyham will be sentenced by Chief Judge Sharp on October 19, 2015. He faces up to 10 years in prison and a fine of up to $250,000, plus forfeiture of the proceeds of his offense.
The case was investigated by the Tennessee Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Bill Abely.
Vanguard Health Systems, Inc. Agrees to Pay $2.9 Million to Settle False Claims Act AllegationsRead the Press Release
Vanguard Health Systems, Inc. and certain affiliated companies have agreed to pay civil damages of $2.9 million to settle allegations that they violated the False Claims Act, announced David Rivera, United States Attorney for the Middle District of Tennessee. The alleged false claims involve violations of the Stark Law and the Anti-Kickback Statute, upcoding of Evaluation and Management (“E&M”) codes, and improper physician supervision of cardiac rehabilitation therapy at the Vanguard-owned Arizona Heart Institute (“AHI”).
Vanguard was headquartered in Nashville, Tennessee before it was purchased by Texas-based Tenet Healthcare Corporation in September 2013, after the alleged conduct took place.
“Enforcement of the False Claims Act remains a priority of the United States Attorney’s Office for the Middle District of Tennessee,” said United States Attorney David Rivera. “The U.S. Attorney’s Office and our law enforcement partners are committed to protecting the public fisc and vigorously pursuing any allegations of false billings to federal healthcare programs.”
Specifically, the settlement resolves allegations that AHI submitted false claims to the Medicare program by knowingly paying certain physicians salaries and bonuses that were above fair market value and in violation of the Stark Law and the Anti-Kickback Statute. Vanguard also settled allegations that AHI physicians had upcoded Medicare billings for E&M patient visits in order to obtain larger payments than allowable for the services actually provided.
Finally, the settlement resolves allegations that AHI billed for cardiac rehabilitation therapy provided by a physician who was not properly supervising the therapists providing the services.
Under the FCA, private citizens, known as relators, can bring suit on behalf of the United States and share in any recovery. The relator in this case will receive over $500,000 as her share of the recovery.
This matter was investigated by the U.S. Postal Service – Office of Inspector General and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney Christopher C. Sabis. The case is docketed as United States ex rel. Lee v. Vanguard Health Services, Inc., et al., No. 3:13-cv-0171 (M.D. Tenn.).
This settlement agreement is neither an admission of liability by Vanguard nor a concession by the United States that the allegations are not well founded.
Former Owner of Madison Wholesale Distributor Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
Scott Lumley, 47, of Hendersonville, Tennessee, pleaded guilty yesterday to wire fraud and money laundering, announced David Rivera, United States Attorney for the Middle District of Tennessee. Lumley was the owner of Bluebuyyou, a wholesale distributor company based in Madison, Tennessee.
During a hearing before U.S. District Court Chief Judge Kevin H. Sharp, Lumley admitted making misrepresentations to a customer to which Bluebuyyou had sold a large quantity of Red Bull energy drink for $176,000. Lumley acknowledged that he falsely told the customer that Red Bull had been shipped to an agreed-upon location in Texas and that he provided forged bills of lading. Bluebuyyou, in fact, had not shipped any Red Bull to the customer and did not possess a sufficient quantity of the product to satisfy the sale. Lumley also admitted that a Bluebuyyou employee pretended to be a trucking dispatcher involved in the shipment of Red Bull and falsely reported to the customer that Red Bull had been shipped to Texas.
Lumley faces up to 20 years in prison in connection with his wire fraud conviction and up to 10 years in prison in connection with his money laundering conviction. He will be sentenced by Judge Sharp on September 18, 2015. Lumley has agreed to pay full restitution to the defrauded customer.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service- Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Former CEO of Sommet Group Sentenced to 20 Years in Prison for $25 Million Fraud SchemeRead the Press Release
L. Brian Whitfield, 49, formerly of Franklin, Tennessee, was sentenced yesterday to serve 20 years in prison, announced David Rivera, United States Attorney for the Middle District of Tennessee. On November 7, 2014, a jury found Whitfield guilty of conspiracy, wire fraud, theft from an employee benefit program, filing a false tax return, and money laundering.
Today’s sentence, handed down by U.S. District Court Judge Todd J. Campbell, also included imposition of a $1.8 million money judgment and a term of 3 years of supervised release. Judge Campbell also ordered Whitfield to pay more than $25.9 million in restitution.
“This sentence demonstrates that those at the highest levels of corporations, especially chief executives whose criminal schemes rob the innocent of their health, financial future and economic stability, will not find shelter in false assertions of a failing economy,” said United States Attorney David Rivera. “This defendant’s massive fraud scheme harmed more than a thousand victims, and this sentence serves as an appropriate punishment.”
During the trial before Judge Campbell last year, the evidence established that Whitfield controlled the finances and funds of the Sommet Group LLC, a payroll processing company that operated in Franklin, Tennessee. From 2008 until 2010, Whitfield diverted millions of dollars of client funds that had been earmarked to fund client employee retirement accounts, to pay health claims, and to pay taxes. Instead of using these client funds as Sommet had promised, Whitfield diverted millions of dollars to prop up affiliated companies that he controlled and spent millions of dollars to acquire the naming rights of Nashville’s professional hockey arena, which came to be known as the Sommet Center. Whitfield also diverted client money to pay for personal expenses including purchasing a $430,000 houseboat, a $99,000 ski boat, luxury clothing and the construction of a $150,000 pool in his backyard.
As a result of Whitfield’s fraud, retirement funds were not fully deposited into the accounts of employees whose paychecks were processed by Sommet, medical and prescription-drug claims by employees were not fully paid, and taxes owed by clients to federal, state, and local governments went unpaid.
The evidence at trial also proved that Whitfield vastly underreported wages and taxes on Sommet’s quarterly employer tax return that he personally prepared and filed. Across six quarters from 2008 – 2010, Sommet paid more than $83 million in wages to its employees and the employees of its clients, but Whitfield reported less than $4 million in wages to the IRS, resulting in an underpayment of more than $20 million in taxes.
In July 2013 D. Edwin Todd, a part owner of Sommet, pleaded guilty to one count of conspiracy in this case, and Marsha Whitfield, Sommet’s Vice President of Payroll, pleaded guilty to one count of conspiracy and one count of wire fraud. Both Todd and Marsha Whitfield await sentencing.
This case was investigated by agents with the Internal Revenue Service- Criminal Investigation, the Federal Bureau of Investigation and the Department of Labor, Employee Benefits Security Administration. The case was prosecuted by Assistant U.S. Attorneys William F. Abely, Sandra G. Moses, and Stephanie N. Toussaint.
Dickson-Based Grease Hauling Company and Its President Plead Guilty to Violating the Clean Water ActRead the Press Release
Southern Grease Company, a grease hauling company based in Dickson, Tennessee, and its president, George Butterworth, 75, of Dickson, pleaded guilty today to charges arising from the illegal disposal of waste grease into municipal sewer systems, announced David Rivera, United States Attorney for the Middle District of Tennessee.
Specifically, Southern Grease and Butterworth pleaded guilty to violating the Clean Water Act, conspiring to violate the Clean Water Act, and making false statements to agents with the Environmental Protection Agency. Southern Grease Company also pleaded guilty to one count of mail fraud, arising from its fraudulent promises to customers and municipalities regarding the disposal of waste grease.
“The United States Attorney’s Office and its law enforcement partners are committed to vigorously prosecuting those who knowingly violate environmental laws,” said United States Attorney Rivera. “This case should send a message that corporations and corporate officers that pursue profit at the expense of municipal resources and the public’s right to a clean environment will face serious felony convictions as well as significant financial penalties.”
In a hearing before U.S. District Court Judge Aleta A. Trauger, the defendants acknowledged the following: Southern Grease contracted with restaurants and other customers in Tennessee and Kentucky to collect and dispose of the customers’ waste grease, otherwise known as FOG (Fats, Oils and Grease) waste. From approximately September 2011 through December 2013, Southern Grease, at the direction of Butterworth, charged its customers for the collection and proper disposal of waste grease, but failed to dispose of the collected grease at an appropriate facility as promised. Instead, Southern Grease illegally discharged waste grease into grease interceptors that were connected to the municipal sewer systems. This illegal dumping of grease caused damage to municipal sewer systems, including by blocking pipes and by clogging the operation of pump stations. For example, the defendants admitted that, in December 2013, it dumped waste grease into a grease interceptor in Clarksville, Tennessee, which resulted in the obstruction of pipes within the Clarksville sewer system and damage to a Clarksville pumping station, the operation of which was interrupted for cleaning and repairs.
The defendants also admitted providing false information to municipalities and making false statements to EPA agents regarding the final disposal location of the waste grease collected by Southern Grease.
In December 2014 federal agents seized more than $391,000 that had been involved in or derived from federal criminal offenses relating to the illegal dumping of waste grease by Southern Grease.
Last month, George McGee, 51, of Dickson, also pleaded guilty to violating the Clean Water Act, to conspiring to violate the Clean Water Act, and to making false statements to agents with the EPA. McGee had previously served as Operations Manager for Southern Grease.
Butterworth and McGee each face up to 5 years in prison for each count of conviction, as well as a criminal fine. Southern Grease faces criminal forfeiture as well as maximum criminal fines of up to $250,000 on three counts of conviction and up to $50,000 per day of violation of the Clean Water Act. The defendants will also be sentenced to pay restitution to the City of Clarksville and Dickson County. All will be sentenced by Judge Trauger on September 14, 2015.
The case was investigated by the EPA Criminal Investigation Division, with assistance from the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Two Tennessee Men Plead Guilty to Killing Man During Home Invasion RobberyRead the Press Release
Two Tennessee men pleaded guilty to using a firearm to kill during a home invasion robbery they conducted on May 7, 2011, announced U.S. Attorney David Rivera of the Middle District of Tennessee and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Demario Winston, 27, of Clarksville, Tennessee, and Michael Massey, 26, of Lexington, Tennessee, pleaded guilty before Chief District Court Judge Kevin H. Sharp of the Middle District of Tennessee to conspiracy to commit Hobbs Act Robbery and use of a firearm in a crime of violence resulting in death. Massey also pleaded guilty to attempted Hobbs Act Robbery.
According to admissions reflected in the plea agreements, on May 7, 2011, Winston, Massey and others attempted to rob a home in Clarksville, Tenn. and Massey used a sledge hammer to gain entry. The conspirators had previously been told that a large amount of cocaine and cash was stored inside a safe in the basement of the home.
The defendants further admitted that, while inside the home, Winston, who was armed with a 9mm pistol, engaged in a gun fight with the homeowner on the first floor, while other conspirators attempted to force one of the occupants of the home, Raul Triana, to open the safe in the basement, pistol-whipping him in the process. Evidence introduced in the plea hearing indicated that in response to the shooting on the first floor, some of the conspirators fled the home, and Massey, who was armed with an assault rifle, fled through the basement where he encountered Triana and shot and killed him.
In addition, according to the statement of facts in support of Massey’s plea, on Oct. 21, 2011, he and a co-defendant robbed the owner of a Clarksville-based construction company at gunpoint.
This case was investigated by the Clarksville Police Department and the DEA. The case is being prosecuted by Assistant U.S. Attorney Lynne T. Ingram of the Middle District of Tennessee and Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section.
Schuylkill Federal Correctional Institution Inmate Charged with Possession of A WeaponRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a felony Criminal Indictment was returned by a federal grand jury sitting in Scranton charging federal prison inmate Dwayne Parker, age 30, today.
According to United States Attorney Peter Smith, Parker was charged with allegedly possessing a homemade weapon in April of 2014, while an inmate at the federal prison.
If convicted, Parker could be imprisoned for a maximum sentence of up to 5 years and a fine in the amount of $250,000.
The investigation was conducted by the FBI. The case is assigned to Assistant United States Attorney Todd K. Hinkley.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Nashville-Based Friendship Home Healthcare and Related Companies Pay U.S. and Tennessee $6.5 Million to Resolve False Claims Act LawsuitRead the Press Release
A group of home health care companies collectively known as “Friendship” and the companies’ owner Theophilus Egbujor paid $6.5 million, plus interest, to resolve allegations that they improperly billed TennCare, Medicare and TRICARE for home health services, announced David Rivera, United States Attorney for the Middle District of Tennessee. Friendship and its owner also agreed to be bound by the terms of a Corporate Integrity Agreement with the Department of Health and Human Services-Office of Inspector General (HHS-OIG) in an effort to avoid future fraud and compliance failures.
“As this case demonstrates, enforcing the False Claims Act remains a key priority of the U.S. Attorney’s Office for the Middle District of Tennessee,” said United States Attorney Rivera. “The U.S. Attorney’s Office and our law enforcement partners will continue to vigorously pursue those who knowingly submit false claims to government health care programs.”
“We are pleased to be part of this coordinated effort to protect taxpayer dollars,” said Tennessee Attorney General Herbert H. Slatery III. “Preventing and prosecuting fraud in our government healthcare programs not only is a deterrent to those looking to take advantage of the system but also sees that much needed healthcare dollars are used as they are intended to be used.”
The settlement resolves the government’s claims that Friendship submitted false claims to TennCare, Medicare and TRICARE during the period of July 2007 through July 2013. The government asserted that Friendship billed TennCare for private duty nursing services that were furnished or supervised by a woman who was excluded from billing federal and state health care programs and that Friendship submitted required forms to TennCare that contained the forged signature of Friendship’s Director of Nursing. The government also contended that Friendship improperly billed TennCare services without the required forms and signatures. In addition, the government claimed that Friendship failed to repay TennCare within 60 days of learning that Friendship had wrongly billed for care provided by a woman whose nursing license had lapsed.
The specific entities included in the settlement agreement are:
- Friendship Home Healthcare, Inc., which has also done business as Friendship HealthCare System,
- Friendship Home Health, Inc., and Angel Private Duty and Home Health, which have also done business as Friendship Private Duty, and
- Friendship Home Health Agency, LLC.
Under the settlement agreement, Friendship and Egbujor paid a total of $6,500,000, plus interest.Of that amount, $4,025,573 goes to the United States, and $2,474,427 goes to the State of Tennessee.
“Fraud involving home health services is a major problem impacting the Medicare and TennCare programs,” said Derrick L. Jackson, the Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “Patients are particularly vulnerable to fraud in a home-based setting because there is often no one looking over the provider’s shoulder. This case demonstrates there are serious consequences to home health agencies that try to defraud federal health care programs.”
The allegations resolved by today’s settlement were originally raised in a lawsuit filed against the Friendship companies and Egbujor by Kay Flippo, a licensed practical nurse who previously worked for Friendship Home Healthcare.She brought her claims under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery.Flippo’s share of the settlement has not been determined.
The case was handled by the United States’ Attorney’s Office for the Middle District of Tennessee and the Tennessee Attorney General’s Office and investigated by HHS-OIG, the Tennessee Bureau of Investigation Medicaid Fraud Control Unit (TBI MFCU), and the Defense Criminal Investigative Service. Assistant U.S. Attorney Ellen Bowden McIntyre represented the United States. Tennessee Assistant Attorney General Mary McCullohs represented the State of Tennessee.
The case is docketed as United States ex rel. Flippo v. Friendship Home Healthcare, Inc., et al., No. 3:14-cv-1262 (M.D. Tenn.). The claims settled by this agreement are allegations only, and there has been no determination of liability.
Federal Jury Convicts Summertown Man of Conspiracy to Possess Child PornographyRead the Press Release
Daniel Bruce LaDeau, 65, of Summertown, Tennessee, was found guilty yesterday, by a federal jury, of conspiracy to possess child pornography, announced David Rivera, United States Attorney for the Middle District of Tennessee.
The jury returned a guilty verdict following a 3-day trial before Chief U.S. District Judge Kevin Sharp.
The evidence at trial showed that between March and August 2010 LaDeau and his younger brother David Ladeau, who was then incarcerated on federal charges of possession of child pornography, exchanged letters in which the two conspired to obtain sexually explicit images and videos of young boys from the Internet. In the letters, the two brothers discussed their mutual sexual interest in child pornography depicting young boys.
Daniel LaDeau, who was a novice computer user, often lamented his inability to find images and videos he had previously viewed, which prompted his brother to provide instructions and suggestions to him about how to obtain such sexually explicit images and videos of young boys from the Internet.
LuDeau will be sentenced by Chief Judge Sharp on August 31, 2015, at 10:00 a.m. He faces up to 10 years in prison and a fine of up to $250,000.
The case was investigated by Homeland Security Investigations; the Special Investigations Unit of the Donald W. Wyatt Detention Facility in Rhode Island; and the Franklin, Tenn. Police Department. The case was prosecuted by Assistant U.S. Attorneys Carrie Daughtrey and Brent Hannafan.
Nashville Man Indicted on Federal Charges After Shooting 62 Year Old in North NashvilleRead the Press Release
George Ivory aka GI, 24, of Nashville, Tenn., was indicted yesterday by a federal grand jury, for being a felon in possession of ammunition, as a result of shooting 62 year- old Cecil Grissette on May 1, 2015, announced David Rivera, United States Attorney for the Middle District of Tennessee. Although the firearm used was not recovered, shell casings found at the scene formed the basis for the charge.
According to the complaint filed against Ivory, Cecil Grissette was in the area of 16th Avenue North and Buchanon Street attempting to buy crack cocaine from another person when Ivory demanded that Grissette buy crack cocaine from him instead. When Grissette decided to buy the drugs from another dealer, Ivory shot Grissette in the head, torso, and leg. Grissette was then transported to Vanderbilt Hospital for medical care.
If convicted, Ivory faces up to 10 years in prison.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case is being investigated by the Metropolitan Nashville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Former Owner of Tennessee Company Indicted on Federal Fraud Charges Relating to $9 Million Corporate TransactionRead the Press Release
Angela M. Suddarth, 51, of Orlando, Florida and previously of Goodlettsville, Tennessee, was indicted yesterday by a federal grand jury on fraud charges relating to the sale of a transportation brokerage company, announced David Rivera, United States Attorney for the Middle District of Tennessee. The 22-count indictment charges Suddarth with wire fraud, mail fraud, money laundering, aggravated identity theft, perjury, bankruptcy fraud, and making a false statement to a federal agency.
According to the indictment, Suddarth owned Shipper Direct Logistics, a transportation brokerage company based in Hendersonville, Tennessee. In 2012, Suddarth entered into an agreement to sell her transportation brokerage assets to Echo Global Logistics, a public company based in Chicago, Illinois, for approximately $9 million. In connection with this transaction, Suddarth fraudulently inflated revenue figures and provided false and fabricated financial reports and information to Echo Global Logistics. Suddarth also falsely represented that the financial information had been prepared by a Certified Public Accountant and fabricated emails to appear that information had been sent by the Certified Public Accountant.
The indictment also charges Suddarth with causing a fabricated email that appeared to come from an employee of Echo Global Logistics to be submitted to a U.S. Department of Labor investigator, although no such email was ever actually sent. In addition, the indictment charges Suddarth with making false statements in a sworn affidavit submitted in connection with a federal civil lawsuit and with lying on a bankruptcy petition by falsely stating that she had not earned any income in 2011, 2012, or 2013.
If convicted, Suddarth faces up to 20 years in prison for each count of wire fraud and mail fraud, up to 10 years in prison for each money laundering charge, and up to 5 years in prison for each charge of making a false statement, bankruptcy fraud, and perjury. Suddarth faces an additional 2-year mandatory minimum sentence if convicted on the charges of aggravated identity theft.
The case was investigated by the FBI, the Internal Revenue Service-Criminal Investigation and the United States Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Bill Abely.
An indictment is merely an accusation. The defendant is presumed innocent unless and until proven guilty in a court of law.
Convicted Felon Sentenced to 188 Months in Federal PrisonRead the Press Release
Charles Eugene Franklin, 34, of Murfreesboro, Tenn., was sentenced yesterday, by United States District Court Judge Todd J. Campbell, to 188 months in federal prison for being a convicted felon in possession of a firearm and possession with intent to distribute cocaine and cocaine base, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Franklin was initially charged in October 2013 and pleaded guilty in August 2014.
“When repeat offenders continue to engage in criminal conduct, without regard for previous punishment, we will bring federal resources and invoke appropriate federal statutes as we seek to remove them from the community for a long period of time,” said U.S. Attorney David Rivera. “There is no parole in the federal system.”
Franklin has a lengthy criminal history including multiple prior felony convictions for drug offenses in Middle Tennessee. As a result of those convictions, Franklin is prohibited by law from possessing a firearm.
On October 3, 2013, law enforcement officials executed two search warrants of residences in Murfreesboro that Franklin had ties to. Officers seized more than 47 grams of cocaine and nearly 80 grams of cocaine base, packaged in multiple separate bundles, as well as $5,797 in cash, a set of digital scales and a loaded Glock .357 caliber pistol that was later determined to be stolen from a Tennessee State Trooper.
ATF Special Agent in Charge Steven L. Gerido remarked, “This focused investigation will have a lasting impact on reducing firearms related violence and taking drugs off the streets of the Murfreesboro area. ATF’s “Frontline” strategy to reduce violent crime demonstrates the collective resources of ATF and the Murfreesboro Police Department to identify violent criminals who lessen the quality of life in our neighborhoods.”
“This is another example of how our detectives and federal agents can partner to better protect the citizens of Murfreesboro,” said Murfreesboro Chief of Police Glenn Chrisman. “Working together, our agencies brought an individual who was a convicted felon and known drug dealer to justice, where he will face the consequences of his illegal activities. We will continue working with our federal law enforcement partners to place violent criminals behind bars.”
This matter was investigated by the Murfreesboro Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The United States was represented by Assistant U.S. Attorney Joe Montminy.
Recent Indictment Followed by Witness Tampering ChargesRead the Press Release
NASHVILLE, Tenn. – May 15, 2015 – Two weeks after being indicted on a federal firearms charge, a federal grand jury has again indicted Michael Calloway aka Oso, 20, of Nashville, Tenn., with conspiring to tamper with a witness and attempting to tamper with a witness, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Also indicted on the same charges was Laquanda Boyce aka Quanda, 33, also of Nashville.
“Witness tampering and any other forms of obstruction of justice are very serious offenses,” said U.S. Attorney David Rivera. “As shown by this case, witness tampering, even if unsuccessful, can subject someone to more prison time than the original offense.”
Calloway was previously indicted on April 29, 2015, with being a felon in possession of ammunition. Charging documents allege that on April 12, 2015, near the intersection of Lewis St. and Robertson St., in Nashville, Calloway fired multiple shots at an individual, wounding him in the leg. That individual was later arrested for a probation violation and was incarcerated at the Davidson County Criminal Justice Center.
The new indictment alleges that Calloway and Boyce conspired to influence or prevent the testimony of this individual by offering to pay his bond to secure his release from jail and offering him cash.
The original charge of being a felon in possession of ammunition carried a maximum penalty of ten years in prison. The additional witness tampering charges carry up to twenty years in prison for each charge.
Calloway has been in federal custody since April 13, 2015, and Boyce was arrested yesterday.
An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty in a court of law.
These cases were investigated by the Metropolitan Nashville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Nashville Man Who Shot at Metro Police Officers Faces Federal Firearms and Drug ChargesRead the Press Release
NASHVILLE, Tenn. – May 15, 2015 – A federal grand jury has indicted Matthew McKervey, 26, of Nashville, Tenn., for discharging a firearm in furtherance of a drug trafficking offense and with felony drug offenses involving methamphetamine and heroin, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Two others, David Alvarez Becerra-Ruiz, 30, and Daniel Alcala, 28, also of Nashville, are also charged with conspiracy to distribute methamphetamine, and possessing and distributing methamphetamine.
According to the indictment, McKervey fired at Metropolitan Nashville police officers as they attempted to execute a search warrant at his home on April 1, 2015.
“When someone uses a firearm against our law enforcement officers who are simply engaging in the lawful execution of their duties, in order to protect the citizens of our communities, the U.S. Attorney’s Office will act swiftly and with resolve to insure that justice is carried out,” said U.S. Attorney David Rivera.
"The use of firearms in the illegal drug trade is inherently dangerous to our police officers as well as Nashville's families," Metro Nashville Police Chief Steve Anderson said. "Those tempted to engage in such conduct should be mindful that this police department will work with our federal partners whenever possible to hold accountable persons who threaten the peace and safety of our neighborhoods. I am grateful for the support of United States Attorney David Rivera and his staff."
McKervey faces a mandatory minimum of 10 years to life in prison on the drug charges, and a mandatory, consecutive 10 years to life in prison for discharging a firearm in furtherance of a drug felony. Becerra-Ruiz and Alcala both face a mandatory minimum of 10 years to life in prison on their drug charges. All three defendants are in custody.
An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Metropolitan Nashville Police Department and the Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
La Vergne Woman Pleads Guilty to Counterfeit Check SchemeRead the Press Release
NASHVILLE, Tenn. – May 12, 2015 - Christine Smith, 49, of La Vergne, Tennessee, pleaded guilty yesterday to a felony charge of possessing counterfeit securities, announced David Rivera, United States Attorney for the Middle District of Tennessee.
During a plea hearing before Judge Aleta A. Trauger, Smith admitted taking part in a counterfeiting scheme in which she manufactured a variety of counterfeit checks, using fake accounts, and then used the checks to purchase stamps at various U.S. Post Office locations. Smith then sold the stamps to another individual and on eBay at a reduced rate.
On October 2, 2013, U.S. Postal Inspectors conducted a search of Smith’s residence and found a counterfeit check. Smith admitted that she knew the check was counterfeit and that she had intended to use it to purchase more stamps from the U.S. Postal Service. Smith also acknowledged that she had negotiated approximately 50 counterfeit checks at various Post Office locations, which totaled more than $5,000.
Smith faces up to 10 years in prison and a fine of up to $250,000 when she is sentenced by Judge Trauger on August 17, 2015.
The case was investigated by the U.S. Postal Inspection Service and the U.S. Secret Service. The case has been prosecuted by Assistant U.S. Attorneys William F. Abely and Scarlett S. Nokes.
Federal Jury Convicts Sex Offender for Failure to RegisterRead the Press Release
Ronald W. Paul, 74, of Gainesboro, Tennessee, was found guilty of failing to report his residence as required by the federal Sex Offender Registration and Notification Act, announced David Rivera, United States Attorney for the Middle District of Tennessee.
Following a trial before U.S. District Court Judge William J. Haynes, Jr., the jury found Paul guilty on three separate counts of failing to register under the Sex Offender Registration and Notification Act. The evidence at trial proved that Paul, who had been convicted of rape and was therefore required to register as a sex offender, failed to report his residence and whereabouts to authorities at various times between 2009 and 2011. Specifically, Paul traveled back and forth to the Philippines without reporting his travels to law enforcement and resided at an address in Gainesboro without reporting this address. By doing so, Paul failed to keep his sex offender registration current.
The Sex Offender Registration and Notification Act is designed to protect the public from sex offenders by establishing a comprehensive national system for the registration of those offenders by tracking their interstate movement. Under federal law, it is a felony for a sex offender to fail to register or update his or her registration.
Paul faces up to 10 years in prison and a fine of up to $250,000 for each count.
The case was investigated by the United States Marshals Service. The case was prosecuted by Assistant U.S. Attorneys S. Carran Daughtrey and William F. Abely.
Three Charged with Committing Federal Firearms Offenses in Nashville's JC Napier and University Court Public Housing AreasRead the Press Release
A federal grand jury has indicted three Nashville, Tenn. men for separate crimes involving federal firearms offenses in the J.C. Napier and University Court public housing developments, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Michael Calloway aka Oso, 20, was charged with being a felon in possession of ammunition. Charging documents allege that on April 12, 2015, near the intersection of Lewis St. and Robertson St., in Nashville, Calloway fired several shots at an individual, striking him in the leg with one of the bullets.
Jacarlvis Marable, 22, was charged with being a felon in possession of a firearm. Charging documents allege that Marable stole a Glock handgun from Gun City USA in Nashville on February 14, 2015.
Deshon Burleson aka C-Shawn, 28, was charged with being a felon in possession of two firearms. Charging documents allege that on October 21, 2014, Burleson was in the housing projects and fled into one of the apartments to evade a Metro Nashville Police officer, who had observed a handgun in the waistband of Burleson’s pants.
All three defendants are in custody and face up to ten years in prison if convicted.
An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty in a court of law.
The cases were investigated by the Metropolitan Nashville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The cases are being prosecuted by Assistant United States Attorney Sunny A.M. Koshy.
Third Clarksville Man Sentenced to Life in Prison in Large Scale Drug Distribution ConspiracyRead the Press Release
Demetrius Duncan, aka Whirley, 34, of Clarksville, Tennessee, was sentenced today to life in prison for his role in a large cocaine distribution conspiracy, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. There is no parole from federal sentences.
Duncan, along with Chris Young, aka Soulja C and Alto Parnell, aka AP, were indicted in January 2011 and convicted at a jury trial on August 23, 2013, of participating in a lengthy conspiracy to distribute 500 grams or more of cocaine and 280 grams or more of crack cocaine. Duncan was also convicted of other charges including being a felon in possession of firearms, and possessing firearms in furtherance of a drug trafficking felony.
“The sentence imposed by the Court was mandated by federal law and reflects the harm that such defendants do to their communities, said U.S. Attorney David Rivera.” “Previous sentences imposed for a multitude of offenses apparently had no effect on deterring Duncan from future criminal behavior.”
Based on Duncan’s involvement in the drug conspiracy, and his previous convictions, which included three drug trafficking felonies and two felonies involving armed violence, Chief U.S. District Judge Kevin H. Sharp sentenced him to the mandatory sentence of life in prison on the drug conspiracy followed by a mandatory consecutive sentence of five years in prison for possessing a firearm in furtherance of drug trafficking.
The trial proof showed that Duncan regularly obtained drugs from Brian Vance, aka Bird, another Clarksville resident who was a ranking member of the Vice Lords street gang, and that the conspiracy involved at least 500 grams of powder cocaine and 280 grams of crack cocaine. Vance previously pleaded guilty and was sentenced to 200 months in prison.
Much of the drugs distributed in this conspiracy were supplied through Robert Porter of Clarksville, Tenn., who also pleaded guilty and has already been sentenced to 300 months in prison.
Duncan’s co-defendants at trial, Alto Parnell and Chris Young, were also previously sentenced to life in prison due to their involvement in the drug conspiracy, and their criminal records.
Duncan was one of 32 defendants charged in a lengthy investigation focusing on drug trafficking in the Clarksville, Tenn. area. The investigation uncovered substantial gang activity within the drug conspiracy and multiple firearms were seized during the take-down phase of the investigation in December 2010.
The investigation was conducted by the DEA, the Tennessee Bureau of Investigation and the Clarksville Police Department, with assistance from other state, local, and federal agencies. Assistant U.S. Attorneys Sunny A.M. Koshy and Lynne T. Ingram represented the United States.
Woodbury Police Chief Indicted by Federal Grand Jury for Stealing Federal Grant FundsRead the Press Release
Kevin Mooneyham, 47, of Woodbury, Tennessee, was indicted Wednesday by a federal grand jury, and charged with stealing federal program funds and wire fraud, announced David Rivera, United States Attorney for the Middle District of Tennessee. Mooneyham, who is the Chief of the Woodbury Police Department, was arrested this morning by TBI agents and will appear before a United States Magistrate Judge later today.
“Funds designated for alcohol enforcement programs are made available to local law enforcement agencies with the underlying purpose of deterring drunk driving and ultimately saving lives,” said U.S. Attorney David Rivera. “Mooneyham’s scheme to steal these grant moneys prevented the officers of his department from conducting these enforcement programs and placed the community at a greater risk.”
According to the indictment, from 2013 until March 2015, Mooneyham, in his role as Chief of the Woodbury Police Department, was responsible for administering and overseeing the overtime grants provided by the Governors Highway Safety Office to the Town of Woodbury, Tenn. These funds were awarded exclusively for the purpose of alcohol enforcement, the majority of which were used to pay overtime for officers engaged in DUI enforcement such as saturations and checkpoints.
During this time, Mooneyham fraudulently prepared and submitted false timesheets for overtime hours, misrepresenting the fact that he had worked DUI enforcement, when he in fact had not worked. The submission of these false timesheets resulted in Mooneyham being paid more than $25,000 to which he was not entitled. These stolen funds were derived from federal grants provided by the National Highway Traffic Safety Administration to the Tennessee Governor’s Highway Safety Office, to be used exclusively for DUI and alcohol enforcement programs.
The indictment also alleges that numerous officers of the Woodbury Police Department expressed an interest in working GHSO overtime patrols but were informed by Mooneyham that no funds were available. When city officials inquired about other officers working overtime patrols, Mooneyham informed them that no officers were interested.
The indictment further alleges that Mooneyham received approximately 91% of the overtime that was paid pursuant to these federal grants to employees of the Woodbury Police Department in 2014, and that he received 100% of such overtime paid during the first quarter of 2015.
“Though the arrest of a law enforcement leader is very disappointing, the public rightfully expects that grant money like this will benefit the community, not its police chief,” said Mark Gwyn, Director of the Tennessee Bureau of Investigation.
“The citizens of this community and our law enforcement officers are greatly disappointed to find that a public servant, held to such a position of trust, has instead violated that trust and his oath of office,” said Jennings Jones, District Attorney General for the 16th Judicial District.
If convicted, Mooneyham faces up to 10 years in prison and a fine of up to $250,000 for theft of federal program funds and up to 20 years in prison and a fine of up to $250,000, for wire fraud. He also faces forfeiture of the proceeds of his offenses.
An indictment is merely an accusation and is not evidence of guilt. This defendant is presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the Tennessee Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Bill Abely.
Federal Search Warrants Target Nashville Area Tax Preparation BusinessesRead the Press Release
Four persons were arrested last week and charged with participating in an income tax refund fraud scheme, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. The fraudulent returns were filed in January and February of this year and sought millions of dollars in refunds.
Those arrested were Byron Fernandez-Virula, Sr., 40; Byron Fernandez-Virula, Jr., 23; and Wilmar Soto-Virula, 33; all from the Madison area of Nashville; and Victor Oliva, 38, of Hendersonville, Tenn. Fernandez-Virula, Sr. and Soto-Virula were also charged with being an illegal alien in possession of a firearm.
The arrests follow the execution of 10 federal search warrants on April 15, 2015, at various residences and tax return businesses throughout Middle Tennessee, including Soto’s Income Tax Service in Madison; Soto’s Services 2 in Hermitage; Soto’s Income Tax in Springfield; Soto Services 1 in Gallatin; and S’ Income Tax Services in Nashville.
The searches yielded approximately $497,000 in cash seized from Fernandez-Virula Sr.’s, and disclosed his ownership of more than 15 residential properties that are collectively worth more than $1 million. The search warrants also resulted in the seizure of about $500,000 from Olvia; the additional seizure of more than $100,000 from various locations and bank accounts; and several late model, luxury automobiles.
According to the criminal complaint, the scheme involved the filing of income tax returns that contained an array of false information, including false W-2s, false wages and withholding tax information and false dependents and taxpayer names. Many of the participants have been confirmed to be illegal aliens. The investigation thus far has led to the arrest and conviction of more than 25 participants.
“The people engaged in these crimes are stealing money from honest, hardworking U.S. tax payers,” said U.S. Attorney David Rivera. “Federal investigators will continue to aggressively pursue all evidence available in this case, to wherever, and to whomever, that evidence leads.”
"IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority," stated Christopher A. Henry, Special Agent in Charge. "At the IRS, protecting taxpayer money is a matter we take very seriously. With the help of our law enforcement partners, we will vigorously pursue those who undermine the integrity of the U.S. tax system, and work to recover any monetary loss to the U.S. Treasury."
"Identifying financial crimes that threaten the health of our national economy and exposing criminals who attempt to steal from law-abiding taxpayers will continue to be a major investigative priority for HSI," said Acting Special Agent in Charge of HSI New Orleans Cindy M. Johnson.
The case is being jointly investigated by the Internal Revenue Service- Criminal Investigations; Homeland Security Investigations; and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Hilliard Hester.
Individual Arrested on Federal Charges for Making Multiple Bomb and Threats of Violence at Various SchoolsRead the Press Release
An individual was arrested and charged in a federal complaint last night with sending threatening communications by interstate commerce, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. The charges resulted from an investigation into multiple bomb threats and threats of extreme violence at several schools in the Nashville area and in the Northeast.
According to the federal complaint, beginning on March 16, 2015 and continuing through today, approximately 16 schools were the targets of bomb threats or threats of violence. The schools targeted in the Nashville area include, Cane Ridge High School; John Overton High School; Antioch High School; Hume-Fogg High School; Strattford High School; and McGavock High School. High SchoolH Also targeted by the threats were schools in Brockton, Massachusetts; Whitman, Massachusetts; Burke, Virginia and Pittsburg, Pennsylvania.
This investigation is being conducted by the FBI; the Metropolitan Nashville Police Department and the Fairfax County, Virginia Police Department. The case is being prosecuted by Assistant U.S. Attorney Van Vincent.
The defendant is a juvenile and federal law precludes the dissemination of additional information. A criminal complaint is merely an accusation and the defendant is presumed innocent unless and until proven guilty in a court of law.
Civil Rights Orientation and TrainingRead the Press Release
Click here for the slideshow from the training.
Monroe County Man Pleads Guilty to Multi-County Drug Trafficking ConspiracyRead the Press Release
The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 32-year-old Effort resident pleaded guilty yesterday before U.S. District Court Judge Robert D. Mariani to participating in a drug conspiracy that was responsible for distributing large quantities of heroin, cocaine and other drugs during a four-year time period in Monroe, Montgomery, and Berks Counties.
According to United States Attorney Peter Smith, the defendant, Ramon Baez, admitted to regularly obtaining drugs from suppliers in Reading and New York, and distributing those drugs to other dealers in Reading and the Monroe County area.
The charge against Baez resulted from an investigation by the Drug Enforcement Administration (DEA), Homeland Security Investigations, the Pennsylvania State Police, the Pennsylvania Attorney General’s Office, Berks County Detectives and Montgomery County Detectives.
Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilty is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
In this case, the maximum penalty under the federal statute is 20 years imprisonment, a term of supervised release following imprisonment, and a $1 million fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Judge Mariani ordered a pre-sentence report to be completed. Sentencing is scheduled to take place in July 2015.
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Nashville Man Sentenced to Federal Prison for Stealing Donations from Area ChurchesRead the Press Release
Kenneth James Stopkotte, 49, of Nashville, Tenn., was sentenced yesterday by Senior U.S. District Court Judge William J. Haynes to serve 45 months in prison, followed by three years of supervised release, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Stopkotte was also ordered to pay restitution to the victims in the amount of $169,978.86.
Stopkotte was indicted on March 6, 2014, on charges of bank larceny, access device fraud, money laundering and aggravated identity theft and pleaded guilty in September 2014 to one count of bank larceny, one count of access device fraud and one count of money laundering.
In his plea agreement, Stopkotte admitted that between August 27, 2012, and February 28, 2013, he stole approximately $181,608.52 in donation checks from the mailboxes of numerous churches in the Nashville area, which he deposited into accounts that he controlled at SunTrust Bank, First Tennessee Bank, Regions Bank, the Bank of Nashville and the Navy Federal Credit Union.
Additionally, Stopkotte admitted to transferring approximately $70,000 of the stolen funds from these various bank accounts to an account that he controlled at USAA Federal Savings Bank, then laundering approximately $48,000 of the money by nine wire transfers of varying amounts into an account titled Black Marlin Industries located at the Federal Bank of the Middle East in Nicosia, Cyprus.
Finally, Stopkotte admitted that he used a credit card that had been issued to another person to charge approximately $13,631.45 in payments and other things of value.
In determining Stopkotte’s sentence, Judge Haynes applied enhancements for the number of victims and the use of sophisticated means on the money laundering count. Judge Haynes ordered Stopkotte’s sentence to be served concurrently with a four year sentence that Stopkotte received in Williamson County, Tennessee, in a related case involving theft of checks from a church.
The investigation was conducted by the U.S. Secret Service, the Murfreesboro, Tenn. Police Department, the Franklin, Tenn. Police Department, the Brentwood Tenn. Police Department and the Madeira, Ohio Police Department. Assistant U.S. Attorney Sandra G. Moses represented the United States.
Escapee from Nashville Captured Near AtlantaRead the Press Release
James Inman Taylor III, 29, of Nashville, Tenn., was captured today near an Atlanta motel after being sought since his escape from Metro Nashville detectives on February 5, 2015, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Taylor was apprehended by FBI agents after a brief chase and struggle, after he was seen leaving a motel near Atlanta. Prior to his escape in February, Taylor had been charged with federal crimes including 2 Hobbs Act Robberies and 2 counts of using a firearm during a crime of violence. He is accused of taking part in the robberies of two Nashville Piggly Wiggly grocery stores on January 9, 2015.
Metro Nashville Police, along with the FBI, TBI and U.S. Marshals had been searching for Taylor since his escape in February. Taylor is currently being held in federal custody in Atlanta.Miami Man Sentenced to 170 Months in Prison for Prescription Drug Diversion ConspiracyRead the Press Release
Rashad Woodside, 38, of Miami, Florida, was sentenced on March 12, 2015, to 170 months in prison by U.S. District Court Chief Judge Kevin H. Sharp, for conspiring to possess and distribute a variety of diverted prescription drugs, including Oxycodone and Oxymorphone, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Woodside pleaded guilty to the charges in July 2014.
During testimony at the sentencing hearing, it was revealed that over a period of several years, Woodside sent tens of thousands of diverted prescription pills from Miami, Florida to two of his co-defendants who resided in the Middle District of Tennessee. Judge Sharp described Woodside as an “opportunist” and found that he held a leadership role in the conspiracy.
This matter was investigated by the Drug Enforcement Administration, the Lebanon Police Department, and the United States Postal Inspection Service. The United States was represented by Assistant U.S. Attorney Brent A. Hannafan.
Eigtheen Indicted in Nashville-Detroit Drug Distribution ConspiracyRead the Press Release
Tens of Thousands of Oxycodone and Oxymorphone Pills Distributed in Middle Tennessee
A federal grand jury in Nashville, Tenn., on Wednesday, returned a 2-count indictment, charging 18 individuals with conspiracy to distribute oxycodone and oxymorphone, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Three of the defendants were also charged with conspiracy to commit money laundering. The indictment also contains forfeiture allegations and the government seeks to forfeit any proceeds and property, including but not limited to a money judgment, representing all or part of the gross proceeds obtained as a result of the alleged crimes.
Yesterday, local, state and federal law enforcement officers in 2 states began arresting those charged in the indictment and also executed several search warrants in the Nashville area and in Detroit, Michigan.
“Illegal drug diversion has greatly contributed to the epidemic prescription drug abuse problem facing our communities today,” said U.S. Attorney David Rivera. “Those who choose to engage in this illegal activity face lengthy prison sentences and the U.S. Attorney’s Office will continue to work closely with the DEA and our local and state law enforcement partners to curtail the diversion of these highly addictive substances.”
“While this investigation involved the diversion of highly addictive pharmaceutical pills from out of state into Tennessee, it is another example of DEA and our federal, state, and local partners working jointly to stop the flow of these diverted pills into Tennessee,” said Michael J. Stanfill, Assistant Special Agent in Charge for DEA-Tennessee. “DEA, the U.S. Attorney’s Office, and our law enforcement partners will not only target those organizations in Tennessee who seek to profit from the illegal distribution of pharmaceuticals and negatively impact our communities, but we will also target the sources of these pills regardless of where they operate.”
Those charged in the drug distribution conspiracy include:
Ashley Kaye Aldrige, 30, of Antioch, Tenn;
Walter Thomas Bowen, Jr., 36, of Smyrna, Tenn;
Bernadette Bradley, aka Bernadette Nichole Colley 43, of Detroit, Mich;
Howard Brons III, 33, of Murfreesboro, Tenn;
Donald Duane Buchanan, Jr., aka Donald Gains, aka Ray Rhodes, 38 of Antioch, Tenn;
Andrew Bradley Froome, 24, of Murfreesboro, Tenn;
Robert Edwin Hampton, 38, of Smyrna, Tenn;
Gene Roland Hardwick, 53, of Detroit, Mich;
Benjamin Edward HenryBradley, 31, of Belleville, Mich;
Tony Wade Holbrooks, 60, of Nashville, Tenn;
James Edward Johnson, II, aka Red, 43, of LaVergne, Tenn;
Felicia Ann Jones, aka Auntie, 55, of Westland, Mich;
Frank Jeffrey Kelly, Jr., aka Little Man, 23, of Smyrna, Tenn;
Eric Anthony McEwen, 38, of Detroit, Mich;
Jonathan Lamar Moore, aka J-Boy, 24, of Antioch, Tenn;
Pamela O’Neal, 52, of Detroit, Mich;
Kai Elijah Ramos, 30, of Smyrna, Tenn. and
Bobby Deandrae Robertson, aka B.O., 27, of Nashville, Tenn.Donald Buchanan, Benjamin Bradley and Felicia Jones were also charged with conspiracy to commit money laundering.
If convicted, each defendant faces a maximum sentence of 20 years in prison on each charge.
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 Attorney Cecil Vandevender is prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent unless and until proven guilty in a court of law.
Former Owner and Employees of Brentwood Based Melanocorp, Inc. Plead Guilty to Federal ChargesRead the Press Release
Company Marketed and Sold Injectable Tanning Product Without FDA Approval
Edward Manookian, 63, of Hendersonville, Tenn., and former owner and President of Melanacorp, Inc., pleaded guilty today to one count of conspiring to defraud the U.S. Food and Drug Administration (“FDA”) and to one count of conspiring to smuggle goods from the United States in violation of the Food, Drug, and Cosmetic Act (“FDCA”), announced David Rivera, United States Attorney for the Middle District of Tennessee.
“The consuming public relies heavily on the FDA’s authority to require products to be properly manufactured, labeled and rendered safe for use,” said U.S. Attorney David Rivera. “The defendants in this case blatantly disregarded the FDA’s orders and direction and placed their desire for ill-gotten profits above the safety of the public. The U.S. Attorney’s Office will continue to work with our regulatory partners to ensure the safety of our citizens and to bring those to justice who circumvent the safety of the public for profit.”
In a plea hearing before U.S. District Judge Todd J. Campbell, Manookian admitted that Melanocorp sold Melanotan II (“MII”), a drug that had not been approved by the FDA. Melanocorp marketed and advertised MII as an injectable tanning product and claimed that MII could reduce skin cancer rates. In August 2007 the FDA warned Melanocorp that MII could not be distributed without FDA approval, however, despite the FDA warning and at Manookian’s direction, Melanocorp continued to sell MII both domestically and abroad until April 2009. Following receipt of the FDA warning letter, Melanocorp sold more than $929,000 worth of MII.Manookian also admitted that Melanocorp advertised its MII as being manufactured in the United States, despite the fact that Melanocorp sold MII that had been imported from China. Manookian also admitted that Melanocorp employees routinely mislabeled the contents of packages containing MII in an effort to avoid detection by U.S.Customs officials.
"When individuals, like the defendants in this case, defraud consumers by disguising the true nature of their products, they not only circumvent FDA’s regulatory authority, they also place consumers’ health in jeopardy," said George M. Karavetsos, Director, FDA Office of Criminal Investigations.“By willfully mislabeling products and knowingly selling unapproved drugs the defendants placed illegal profit over the health and safety of law-abiding citizens,” said Acting Special Agent in Charge of HSI New Orleans Cindy M. Johnson. “Counterfeit drugs and cosmetics are a particular danger to the public because of the potential to ingest harmful substances, and HSI will continue to work with its federal, state and local law enforcement partners to keep these potentially dangerous items off the street.” Johnson oversees a five-state area of responsibility including Tennessee, Arkansas, Alabama, Louisiana and Mississippi.
Manookian is scheduled to be sentenced by Judge Campbell on June 26, 2015. He faces up to five years in prison and a fine of up to $250,000 on each count.
In addition, two other former employees of Melanocorp pleaded guilty today in a hearing before Judge Campbell. Brian Manookian, 34, of Nashville, and Karen Manookian, 31, of New York City, each pleaded guilty to one count of violating the FDCA by distributing MII in interstate commerce. Brian and Karen Manookian are scheduled to be sentenced by Judge Campbell on June 19, 2015. Each faces up to one year in prison.
This case was investigated by the FDA- Office of Criminal Investigations and the Department of Homeland Security, Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Dickson, Tennessee Medical Practice to Pay More Than Half A Million Dollars to Settle False Claims Act AllegationsRead the Press Release
Dickson Medical Associates, P.C. (“DMA”) of Dickson, Tennessee has agreed to pay civil damages of over $500,000 to settle allegations that it violated the False Claims Act, announced David Rivera, United States Attorney for the Middle District of Tennessee. The alleged false claims involved the importation and distribution of foreign, non-FDA approved prescription drugs prohibited under the Food, Drug, and Cosmetic Act.
Specifically, the settlement resolves allegations by the United States that a doctor, through DMA and as one of its physicians and shareholders, obtained Aclasta®, a non-FDA approved version of the drug Reclast®, from foreign distributors at various times from 2008 through 2012. The doctor prescribed these drugs to patients and then, through DMA, billed for the foreign drugs as FDA-approved Reclast®, despite the fact that the foreign drugs were not intended for distribution in the United States and in some instances, the drug labels appeared in foreign languages. The drug is predominantly used to treat osteoporosis and bone damage.
“The Food, Drug and Cosmetic Act and its enacting regulations exist to ensure the safety and efficacy of prescription drugs sold within the United States,” said U.S. Attorney David Rivera. “The resolution set forth in this settlement agreement should send a clear message that this Office will diligently pursue any violations of those laws.”
This matter was investigated by the U.S. Food and Drug Administration- Office of Inspector General, the U.S. Department of Health and Human Services- Office of Inspector General, the Tennessee Bureau of Investigation, and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney Christopher C. Sabis.
This settlement agreement is neither an admission of liability by DMA nor a concession by the United States or the State of Tennessee that the claims are not well founded.
Former Nissan Employee Sentenced in Scheme to Defraud NissanRead the Press Release
Kenneth Carter, 45, of Corona, Calif., was sentenced today by U.S. District Judge William J. Haynes, Jr., to serve 60 months in prison for his role in a scheme to defraud Nissan North America by filing false Lemon Law claims on behalf of individuals who owned Nissan vehicles, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Carter was also ordered to pay restitution in the amount of $565,000 to Nissan North America.
On April 3, 2014, Kenneth Carter, along with co-defendants, Francisco DeLaRosa, 42, of West Covina, Calif., Adrian Franklin, 40, of Chandler, Arizona, Bruce Young, 49, of Compton, Calif., Tracey Young, 46, of Los Angeles, Calif., and Wendell Young, 34, of Inglewood, Calif., were indicted and charged with conspiracy to commit mail fraud, mail fraud, and conspiracy to commit money laundering, for their roles in a scheme to defraud Nissan North America.
The scheme originated from Kenneth Carter, a former employee of Nissan North America who was employed at Nissan’s Franklin, Tennessee headquarters from March 2007 through April 2008 as an “Arbitration Specialist”. Carter’s duties as an Arbitration Specialist included negotiating settlements with attorneys who brought claims on behalf of Nissan owners alleging violations of “Lemon Laws” or the “Federal Warranty Act.”
Between March 2007 and April 2008, Carter, along with Wendell Young, Adrian Franklin, Tracey Young, Francisco DeLaRosa, and others, provided information obtained from Nissan owners, such as the owner’s name, address, and vehicle identification number, which Carter used to file false and fraudulent Lemon Law claims with Nissan and requested settlement checks. Once Carter processed the false claims he caused settlement checks to be issued. Defendants Wendell Young, Adrian Franklin, Tracey Young, and Francisco DeLaRosa then directed the Nissan owners to deposit the checks into their bank accounts or to cash the checks and then “kick-back” a portion of the funds received from Nissan. A portion of the funds were then paid to Carter, and the remaining funds were kept by Wendell Young, Adrian Franklin, and Tracey Young.
Between March 2007 and April 2008 Carter caused more than 80 false claims to be paid by Nissan, totaling approximately $571,500.
Five other co-defendants were previously sentenced in the case:
- Francisco DeLaRosa was sentenced on June 13, 2014, to five months in a half-way house to be followed by five months of house arrest and ordered to pay $191,250.00 in restitution to Nissan North America.
- Adrian Franklin was sentenced on June 6, 2014, to 10 months in a half-way house and ordered to pay $191,250.00 in restitution to Nissan North America.
- Bruce Young was sentenced on August 15, 2014, to 15 months in prison and ordered to pay $78,000.00 in restitution to Nissan North America.
- Tracey Young was sentenced on June 13, 2014, to 12 months and one day in prison, to be followed by six months in a half-way house and ordered to pay $191,250.00 in restitution to Nissan North America.
- Wendell Young was sentenced on May 30, 2014, to 20 months in prison and ordered to pay $191,250.00 in restitution to Nissan.
The case was investigated by the IRS-Criminal Investigation and the Tennessee Bureau of Investigation. Assistant United States Attorneys Kathryn Ward Booth and Sandra G. Moses represented the government.
Clarksville Woman Sentenced for Filing False Tax ReturnsRead the Press Release
Traci Lynne Howes, 41, of Clarksville, Tennessee, was sentenced on February 9, 2015, by Chief United States District Court Judge Kevin H. Sharpe, to serve 18 months in prison for filing a false tax return, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Howes pleaded guilty in May 2014 to failing to report income of more than $605,000, which she embezzled from her former employer, Drywall Systems, Inc., in Gallatin, Tenn. Chief Judge Sharpe also ordered Howes to pay restitution in the amount of $538,932.33 for funds embezzled from her former employer, and $139,525 to the IRS for funds withheld from the IRS employee trust fund taxes and employer payroll taxes.
“The U.S. Attorney’s Office will aggressively pursue and prosecute individuals who intentionally evade their tax responsibility,” said U.S. Attorney David Rivera.
“With tax season underway, let this sentencing serve as a reminder, no matter what the source of income, all income is taxable,” said Christopher A. Henry, Special Agent in Charge of the Nashville Office of the IRS-Criminal Investigation. “The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS' enforcement strategy.”
The investigation was conducted by IRS-Criminal Investigation. Assistant U.S. Attorneys Stephanie N. Toussaint and Kathryn Ward Booth prosecuted the case.
Lavergne Tax Return Preparer Indicted for Tax FraudRead the Press Release
Michelle Theus, 40, of LaVergne, Tenn. was indicted yesterday by a federal grand jury in Nashville on charges related to preparing and filing false federal income tax returns, announced David Rivera, U. S. Attorney for the Middle District of Tennessee and Larry J. Wszalek, Acting Deputy Assistant Attorney General for the Justice Department's Tax Division. Theus was charged with 26 counts of aiding and assisting in the preparation of false tax returns for other individuals and two counts of filing false tax returns for herself.
According to the indictment, Theus aided in the preparation of at least 26 false tax returns for other individuals, from January 2009 through February 2012. The returns reported items such as false dependents and false education and childcare credits. The indictment further alleges that Theus made, signed, and filed false 2009 and 2010 tax returns that substantially underreported her income.
If convicted, Theus faces up to three years in prison and a $250,000 fine for each count.
The case was investigated by the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Kathryn Ward Booth and United States Department of Justice Tax Division Trial Attorney Alexander R. Effendi are representing 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.
Leader of Violent Drug Distribution Ring Sentenced to More Than 20 Years in PrisonRead the Press Release
More Than 30 Defendants Charged and Convicted During Investigation
Brice N. Marchbanks a/k/a Bear, 32, of Nashville, Tennessee, was sentenced yesterday to more than 20 years in federal prison for his role as the leader of a long- running, violent crime and drug distribution conspiracy, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. Marchbanks was convicted of all charges against him, including drug conspiracy, maintaining a drug house, possessing firearms in furtherance of drug crimes, and distributing drugs to a 14 year-old, after a week-long jury trial in September 2014. Senior Judge John T. Nixon sentenced Marchbanks to the maximum allowed under the federal sentencing guideline range, to reflect the seriousness of the crimes and to protect the public.
Marchbanks’ drug operation was uncovered as part of an investigation into various Rollin’ 60 Crips gang members who were committing armed robberies of suspected drug dealers, under the belief that the crimes would not be investigated fully and that the targeted victims would not cooperate with law enforcement.
According to the proof at trial, Marchbanks was the target of such a robbery by other gang members and was in fact shot during that robbery. When questioned by police, Marchbanks falsely claimed that the robbery was not drug-related. The investigation, however, showed that Marchbanks was running a drug house in the Creekwood Drive area of Nashville and was using armed minors to guard the house.
The trial also included proof that Marchbanks wrongly suspected another Rollin’ 60 Crips gang member of having participated in that robbery, and solicited the murder of that person. A 15 year- old and a person who is still unidentified then shot the gang member whom they suspected. The wounded gang member survived and the investigation determined that he was not involved in the robbery of Marchbanks.
Marchbanks is the final defendant to be tried in the case, which began in 2009 and resulted in more than 30 defendants being charged with drug crimes, firearms and other offenses. All of the defendants in this case have now been convicted, including more than five gang members who held the status of “OG” (“Original Gangsta”), the highest rank available in Tennessee.
The investigation was conducted by the FBI, the ATF and the Metropolitan Nashville Police Department. Assistant United States Attorneys Sunny A.M. Koshy and Louis Crisostomo prosecuted the case.
DOJ Public Integrity Section Chief to Take Number Two Post at U.S. Attorney's Office in NashvilleRead the Press Release
Jack Smith, the head of the Department of Justice’s Public Integrity Section, will leave his post at the end of the month to become the First Assistant U.S. Attorney in Nashville, Tenn., announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
The First Assistant U.S. Attorney position has been vacant since David Rivera was named U.S. Attorney.
“We are most fortunate to be gaining someone with such exceptional talent and experience in leading the prosecution of an array of criminal cases including violent criminal enterprises, white collar crimes, international crimes and public corruption,” said U.S. Attorney David Rivera. “Jack’s leadership ability and prosecutorial experience will greatly enhance our current staff of exceptional prosecutors the office.”
Smith has been the Chief of the Public Integrity Section in Washington, D.C. since 2010, where he has lead a team of 30 prosecutors in litigating complex public corruption cases throughout the United States, including the conviction yesterday of former CIA Officer Jeffrey Sterling, for illegally disclosing national defense information and obstructing justice. Smith’s unit also recently secured bribery and extortion convictions of former Virginia Governor Robert McDonnell and racketeering, bribery and extortion convictions of former Arizona U.S. Representative Rick Renzi.
Before taking the helm of the Public Integrity Section, Smith served as the investigation coordinator for the Office of the Prosecutor with the International Criminal Court, where he lead the investigative teams conducting international investigations of war crimes, crimes against humanity and genocide.
Smith previously served as an Assistant U.S. Attorney in the Eastern District of New York from 1999-2008, where he held increasing responsible positions including Chief of the Criminal Litigation Unit. Prior to joining the U.S. Attorney’s Office he was a prosecutor in the New York County District Attorney’s Office for five years. Smith is a 1994 graduate of Harvard Law School.“I have had the extraordinary privilege of working for the American people in a variety of offices and alongside some of the most dedicated public servants,” said Smith. “I look forward to beginning the next chapter and serving the people of the Middle District of Tennessee as we continue the great work of this office in seeking justice for our constituents.”
Smith assumes the role as First Assistant on February 9, 2015.
David Rivera Confirmed by US Senate as United States Attorney for the Middle District of TennesseeRead the Press Release
David Rivera has been confirmed by the United States Senate to serve as the United States Attorney for the Middle District of Tennessee.
President Barack Obama nominated Rivera for this post June 19, 2014. The President said of Rivera that he had proven himself to be not only a top flight attorney but a dedicated public servant. Mr. Obama went on to say that he was grateful for the work already accomplished on behalf of the American people and confident that Rivera will ensure justice will be served during his tenure as United States Attorney.
The Senate confirmed Rivera’s nomination by unanimous consent during an evening session of the Senate on December 16.
David Rivera has been the Acting United States Attorney for the Middle District of Tennessee since April 2013. He has served as an Assistant United States Attorney in the Middle District of Tennessee since 2004, during which time he has held leadership positions including First Assistant United States Attorney, Chief and Deputy Chief of the Criminal Division. From 1999 to 2004, he worked in the United States Attorney’s Office in the District of Puerto Rico, serving as Deputy Chief of the Criminal Division. Mr. Rivera is a highly decorated prosecutor who has received numerous awards and is twice recipient of the Department of Justice’s prestigious Director’s Award for Superior Performance as an Assistant United States Attorney for his work in the investigation and prosecution of public corruption and financial crimes. Mr. Rivera was an Assistant State Attorney in Broward County, Florida and an Assistant District Attorney in Bronx County, New York. Mr. Rivera also served in the United States Air Force and the United States Air National Guard.
Springfield Resident Sentenced in Child Pornography OffensesRead the Press Release
Defendant Was On State Supervision for Prior Contact Offense
David Rivera, U.S. Attorney for the Middle District of Tennessee, announces that Jason Mikula, 36, of Springfield, Tennessee, was sentenced by United States District Court Judge Kevin Sharp to 20 years in prison. Mikula had pleaded guilty to receipt and possession two child pornography offenses on August 28, 2014.
Mikula was convicted in Nashville, Tennessee, in August 2005 of Aggravated Sexual Battery of a very young child and multiple counts of Sexual Exploitation of a Minor. After serving time in the state penitentiary, he was released in August 2012 onto lifetime supervision with the state. Within seven months of release, however, he had collected a number of sexually explicit images involving children, including images of violence perpetrated against very young children.
Upon his release from federal prison, Mikula will be placed on supervised release for fifteen years and will be required to participate in sex offender treatment, among other conditions.
The defendant also was ordered to pay restitution in the amount of $9300 to a minor victim depicted in some of the images of sexual exploitation he had collected.
This matter was investigated by the Federal Bureau of Investigation and the United States Attorney’s Office for the Middle District of Tennessee. The United States was represented by Assistant U.S. Attorney S. Carran Daughtrey.
Lebanon Woman Pleads Guilty to Embezzlement SchemeRead the Press Release
Bianca Thompson, 42, of Lebanon, Tenn., pleaded guilty last week in United States District Court in Nashville to two counts of wire fraud and one count of making a false statement to an agent with the U.S. Secret Service, announced David Rivera, United States Attorney for the Middle District of Tennessee.
In a hearing before U.S. District Court Chief Judge Kevin Sharp, Thompson admitted to engaging in a scheme to embezzle more than $135,000 from her employer and a client.
Thompson stated that, while an employee of Performance Food Group Customized Distribution (“PFG”) in Lebanon, she falsely told a PFG client that PFG had made a mistaken payment of more than $135,000, and instructed the client to wire that amount to Thompson’s personal bank account. Thompson then converted the funds to her own personal use, including reducing her personal debts. Thompson further admitted during the plea hearing that she concealed from her employer that she had instructed a second client to wire funds to her personal account, and that she then converted those funds to her own personal use. When confronted about her conduct by the U.S. Secret Service, Thompson falsely stated to agents that she had transferred the funds received from one PFG client to another and falsely stated that she had not spent any of the funds.Thompson faces up to 20 years in prison on the wire fraud counts, and up to 5 years for the count of making a false statement to a federal investigator. Jones is scheduled to be sentenced on March 15, 2015.
The case was investigated by the U.S. Secret Service. The United States is represented by Assistant U.S. Attorney William F. Abely.
Ten Indicted in Drug Distribution ConspiracyRead the Press Release
Four-Year Investigation Nets Majority of Defendants from Robertson County
A federal grand jury in Nashville last week, returned indictments charging 10 people with conspiring to distribute more than 5 kilograms of cocaine, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Armed with arrest warrants and search warrants, local, state and federal law enforcement officers, on Friday, began arresting those charged in the indictment. As of today, six are in custody and four remain at large.
“This indictment should send a clear message to the people of Middle Tennessee, particularly those in the Robertson County area, that local, state and federal law enforcement agencies will come together to rid our communities of drug dealers and violent criminals who think they can operate under the radar in rural America,” said U.S. Attorney David Rivera. “Sheriff Holt has done an excellent job of coordinating resources from law enforcement agencies in Robertson County.”
“This investigation is another example of DEA and our state and local partners working cooperatively to target and dismantle major drug trafficking organizations, operating in both urban and rural areas of Middle Tennessee,” said Michael J. Stanfill, Assistant Special Agent in Charge of DEA in Tennessee. “While these rurally based organizations believe they can operate with impunity due to a smaller presence of law enforcement, DEA and our partners will investigate these organizations with the same type of resources and manpower as those operating in major metropolitan areas.”
In a joint statement, Robertson County Sheriff Bill Holt and Springfield Police Chief David Thompson stated, “The people of Robertson County can rest assured that our local law enforcement agencies will continue to work together with state and federal law enforcement agencies and the U.S. Attorney’s Office, to ensure the safety and quality of life for our citizens. Through or continued efforts, violent criminals and drug dealers will come to learn that Robertson County is not a safe haven for criminal activity.”
The charges and those indicted include:
Conspiracy to distribute 5 kilograms or more of cocaine:
Jose Arias Jurado, 55, of Springfield, Tenn;
Felipe Esquirel, age unknown, of Springfield, Tenn;
Abel Conejo, 29, of Springfield, Tenn;
Brian Reeves, 35, of Pleasant View, Tenn;
Phillip Goosetree, 43, of Cross Plains, Tenn;
Marcus Cantrell, 32, of Springfield, Tenn;
James Thomas Johnson, Jr., 34, of Springfield, Tenn;
Antonio Witherspoon, 41, of Nashville, Tenn;
Rene Orozco-Pineda, 44, of Greenbrier, Tenn; and
Salvador Maurico, aka Young Salvador, 23, of Springfield, Tenn.Possession with intent to distribute 500 grams or more of cocaine:
Felipe Esquirel;
Jose Arias Jurado.
Possession with intent to distribute cocaine:
Felipe Esquirel;
Salvador Maurico.Possession of a firearm in furtherance of a drug crime:
Felipe Esquirel
Salvador Maurico.Conspiracy to commit money laundering:
Jose Arias Jurado;
Felipe Esquirel;
Abel Conejo; and
Rene Orozco Pineda.Those currently not in custody and considered fugitives are Felipe Esquirel, James Thomas Johnson, Antonio Witherspoon and Rene Orozco-Pineda. These individuals are currently being sought by law enforcement.
If convicted, those charged with the conspiracy to distribute 5 kilograms or more of cocaine face a minimum of 10 years and up to life in prison. The firearm possession charges carry a mandatory minimum of five additional years in prison. Conspiracy to commit money laundering carries a penalty of up to 20 years in prison.
This investigation was conducted by the Drug Enforcement Administration, the 19th Judicial District Drug Task Force, the Robertson County, Tenn. Sheriff’s Office and the Springfield, Tenn. Police Department. Asst. U.S. Attorney Lynne T. Ingram is prosecuting the case.
An indictment is merely an accusation and all defendants are presumed innocent unless and until proven guilty in a court of law.
Clarksville Man Sentenced to Life in Prison in Large Scale Drug Conspiracy ProsecutionRead the Press Release
Alto Parnell a/k/a AP a/k/a Al-Pistol, 32, of Clarksville, Tennessee, was sentenced yesterday to life in prison for his role in a large cocaine distribution conspiracy, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. There is no parole from federal sentences.
Parnell, along with Chris Young a/k/a Soulja C and Demetrius Duncan a/k/a Whirley, were indicted in January 2011 and convicted at a jury trial on August 23, 2013, of participating in a lengthy conspiracy to distribute 500 grams or more of cocaine and 280 grams or more of crack cocaine. Parnell was also convicted of possessing cocaine and crack cocaine with intent to distribute within 1000 feet of the Summit Heights public housing area in Clarksville, Tennessee. His previous criminal history included two state felony drug trafficking convictions, as well as several other convictions. He was under state supervision for those drug felonies during the time that he was committing the federal offenses. Chris Young was previously sentenced to life in prison. Duncan is scheduled for sentencing on January 23, 2015.
U.S. Attorney David Rivera stated, “This defendant was involved in a large-scale drug trafficking conspiracy tied to gangs and guns, which caused significant harm to the Clarksville community. Those who already have multiple convictions for drug trafficking and choose to continue down this path can expect lengthy sentences which account for the harm they caused in their communities.”
Parnell was one of 32 defendants charged in a lengthy investigation focusing on drug trafficking in the Clarksville area. The investigation uncovered substantial gang activity within the drug conspiracy and multiple firearms were seized during the take-down phase of the investigation in December 2010.
The investigation was conducted by the DEA, the Tennessee Bureau of Investigation and the Clarksville Police Department, with assistance from other state, local, and federal agencies. Assistant U.S. Attorneys Sunny A.M. Koshy and Lynne T. Ingram represented the United States.
CareAll Companies Agree to Pay $25 Millionto Settle False Claims Act AllegationsRead the Press Release
CareAll Management, LLC, and its affiliated entities (collectively, “CareAll”) have agreed to pay $25 million, plus interest, to the United States and the State of Tennessee to resolve allegations that CareAll violated the False Claims Act (“FCA”) by submitting false and upcoded home healthcare billings to the Medicare and Medicaid programs, announced David Rivera, U.S. Attorney for the Middle District of Tennessee and Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. This is CareAll’s second FCA settlement within the last two years, having paid $9.375 million in 2012 relating to allegations of submitting false cost reports to Medicare. The company also agreed to be bound by the terms of an enhanced and extended Corporate Integrity Agreement with the Department of Health and Human Services – Office of Inspector General (“HHS-OIG”) in an effort to avoid future fraud and compliance failures.
CareAll is based in Nashville, Tennessee and is one of Tennessee’s largest home health providers. This settlement resolves allegations that, between 2006 and 2013, CareAll improperly billed for services that were upcoded, not medically necessary, and rendered to patients who were not homebound.
“This case demonstrates that enforcement of the False Claims Act is a priority of the United States Attorney’s Office for the Middle District of Tennessee,” said United States Attorney David Rivera. “The U.S. Attorney’s Office and our law enforcement partners are committed to protecting the public and vigorously pursuing all those who knowingly submit false claims affecting Medicare and Medicaid programs.”
“Home health agencies may only bill Medicare and Medicaid for care that is covered,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division. “This settlement is another example of the department’s commitment to ensuring that scarce home health care dollars are spent for their intended purposes.”
Under the FCA, private citizens, known as relators, can bring suit on behalf of the United States and share in any recovery. The relator in this case, Toney Gonzales, will receive over $3.9 million as his share of the recovery.
“We are seeing a surge across the country in fraudulent home-based services,” said Special Agent in Charge Derrick L. Jackson of HHS-OIG in Atlanta. “This settlement demonstrates our commitment to protect the Medicare Trust Fund and ensure that funds are not siphoned off by companies that are more concerned with the bottom line than patient care.”
The United States’ investigation was conducted by the U.S. Attorney’s Office for the Middle District of Tennessee, the Civil Division of the Department of Justice, HHS-OIG and the Tennessee Bureau of Investigation. The United States was represented by Assistant U.S. Attorney Christopher C. Sabis and Trial Attorney Susan Lynch of the Civil Division - U.S. Department of Justice. The case is docketed as United States ex rel. Gonzales v. J.W. Carell Enterprises, Inc., et al., No. 12-0389 (M.D. Tenn.).
L. Brian Whitfield, Former Managing Partner of Sommet Group, Convicted by Federal Jury in $15 Million Fraud SchemeRead the Press Release
L. Brian Whitfield, 49, formerly of Franklin, Tennessee, was convicted by a federal jury on Friday, after an eight-day trial, of 14 fraud-related counts, announced David Rivera, United States Attorney for the Middle District of Tennessee. The jury found Whitfield guilty of conspiracy, wire fraud, theft from an employee benefit program, filing a false tax return, and money laundering.
“Having your corporate name in lights will not insulate its principles from federal prosecution if, through fraud, you steal the health insurance, retirement, and tax contributions of companies and citizens of the Middle District,” stated United States Attorney David Rivera. “This type of corporate fraud will not be viewed as the cost of doing business by the United States Attorney’s Office and its law enforcement partners.”
The evidence during the trial before U.S. District Court Judge Todd J. Campbell established that Whitfield controlled the finances and funds of the Sommet Group LLC, a payroll processing company that operated in Franklin, Tennessee. From 2008 until 2010, Whitfield diverted millions of dollars of client funds that had been earmarked to fund client employee retirement accounts, to pay health claims, and to pay taxes. Instead of using these client funds in the manner in which Sommet had contracted, Whitfield diverted millions of dollars to prop up affiliated companies that he controlled and spent millions of dollars to acquire the naming rights of Nashville’s professional hockey arena, which came to be known as the Sommet Center. Whitfield also diverted client money to pay for personal expenses, including purchasing a $430,000 houseboat, a $99,000 ski boat, luxury clothing and the construction of a $150,000 pool in his backyard.
As a result of Whitfield’s fraud, retirement funds were not fully deposited into the accounts of employees whose paychecks were processed by Sommet, medical and prescription drug claims by employees were not fully paid, and taxes owed by clients to federal, state, and local governments went unpaid.
The evidence at trial also proved that Whitfield vastly underreported wages and taxes on Sommet’s quarterly employer tax returns that he personally prepared and filed. Across six quarters from 2008 – 2010, Sommet paid more than $83 million in wages to its employees and the employees of its clients, but Whitfield reported less than $4 million in wages to the IRS, resulting in an underpayment of more than $20 million in taxes.
“Having your corporate name in lights will not insulate you from federal prosecution if, through fraud, you steal the health insurance, 401 K retirement, and tax contributions of companies and citizens of the Middle District,” stated United States Attorney David Rivera. “This type of corporate fraud will not be viewed as the cost of doing business by the United States Attorney’s Office and its law enforcement partners.”
Whitfield will be sentenced by Judge Campbell on January 26, 2015. Whitfield faces up to 20 years in prison on each of three counts of wire fraud, up to 10 years in prison on each of four counts of money laundering, up to 5 years in prison on a conspiracy count and on each of three counts of theft from an employee benefit plan, and up to 3 years in prison on each of four counts of filing a false federal tax return. He also faces fines and will be ordered to pay restitution to his victims. In addition, the jury specified that Whitfield should forfeit $1.8M of proceeds from his offenses.In July 2013, D. Edwin Todd, a part owner of Sommet, and Marsha Whitfield, Sommet’s Vice President of Payroll, each pleaded guilty to one count of conspiracy for their roles in the scheme orchestrated by Brian Whitfield. Both Todd and Marsha Whitfield are awaiting sentencing.
This case was investigated by agents with the Internal Revenue Service Criminal Investigation, the Federal Bureau of Investigation and the Department of Labor, Employee Benefits Security Administration. The case was prosecuted by Assistant U.S. Attorneys William F. Abely, Kathryn Ward Booth, Sandra G. Moses, and Stephanie N. Toussaint.
Convicted Felon Sentenced to 15 Years in Federal PrisonRead the Press Release
William Robert Humphrey, 31, of Nashville, Tenn., pleaded guilty and was sentenced yesterday by United States District Court Judge William J. Haynes, Jr., to 15 years in federal prison for being a convicted felon in possession of a firearm and possession with intent to distribute cocaine, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
“This prosecution and sentence reflect a collaborative effort between local, state and federal law-enforcement to identify and remove the most dangerous offenders from our communities who habitually break the law,” said U.S. Attorney David Rivera. “Mr. Humphrey’s reign as a violent criminal has come to an abrupt end as there is no parole in the federal system.”
Humphrey has a lengthy criminal history including multiple prior felony convictions for drug trafficking offenses and violent crimes throughout Middle Tennessee. As a result of those convictions, Humphrey is prohibited by law from possessing a firearm.
On May 17, 2013, Metropolitan Nashville Police Department officers arrested Humphrey on multiple outstanding felony warrants in a residence in East Nashville, where he was found sleeping with a shotgun underneath his mattress.
On September 7, 2013, while out on bond in the previous case, Humphrey was arrested by the Tennessee Highway Patrol, in Shelbyville, Tennessee, following a traffic stop. At the time of his arrest, Humphrey was carrying over $4,500 in cash and approximately an ounce of cocaine for resale.
This matter was investigated by the Metropolitan Nashville Police Department, the Tennessee Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The United States was represented by Assistant U.S. Attorney Clay Lee.Repeat Sex Offender Sentenced for Distribution of Child PornographyRead the Press Release
Christopher Troy Sullivan, 41, of Joelton, Tennessee, was sentenced yesterday, by United States District Court Judge Aleta A. Trauger, to 15 years in prison for distribution of child pornography, announced David Rivera, United States Attorney for the Middle District of Tennessee.
According to court documents, from approximately December 2010 through May 2012, Sullivan possessed and distributed child pornography. Sullivan admitted that he created a fake profile on the social media website “Facebook” to initiate and maintain an online relationship with a teenage girl over the course of several months. During the relationship, Sullivan obtained hundreds of nude and sexually explicit images of the girl. He then distributed those images to others and created additional false online profiles, pretending to be the girl in order to induce other teenage girls to also send him nude images.
Law enforcement officers from the Metropolitan Nashville Police Department seized several items of electronic equipment from Sullivan’s house. Analysis of the equipment revealed that Sullivan had obtained over 1,400 images of child pornography, which were located in hidden electronic file folders.
Upon his release, Sullivan will remain on supervised release for ten years and will be required to participate in sex offender treatment, among other conditions. Sullivan is a registered sex offender who was previously convicted in 2004 of aggravated sexual exploitation of a minor in Davidson County, Tennessee.
This case was investigated by the Metropolitan Nashville Police Department, the Cheatham County Sheriff’s Department, the Davidson County Probation and Parole Office, and the Minnesota Bureau of Criminal Apprehension. The case is being prosecuted by Assistant United States Attorneys Lynne T. Ingram and Louis A. Crisostomo.Nashville Man Indicted for Bankruptcy FraudRead the Press Release
Michael Ross Smith, 43, of Brentwood, Tenn., was indicted on October 22, 2014, by a federal grand jury in Nashville, on three counts of bankruptcy fraud, announced David Rivera, U.S. Attorney for the Middle District of Tennessee .
The indictment alleges that Smith filed for bankruptcy and then committed bankruptcy fraud by providing false testimony, under oath, during an examination conducted by the U.S. Trustee. Smith testified that he had been a temporary employee of a Nashville business and also testified that he was no longer employed by the business. According to the indictment, Smith was in fact employed by the business as the President of Sales and earned an annual base salary of $150,000. The indictment also charges Smith with fraudulently withholding documents related to his employment and financial affairs, in violation of an order issued by the Bankruptcy Court for the Middle District of Tennessee.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigation to enforce the bankruptcy laws.
If convicted, Smith faces a maximum penalty on each count of five years in prison, a fine of $250,000 and a $100 mandatory assessment fee.
This investigation was conducted by the FBI with assistance from the U.S. Trustee. The government is represented by Assistant U.S. Attorney Stephanie N. Toussaint and Special Asst. U.S. Attorney Lloyd E. Mueller.
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.
Timothy Thomas, Former Owner of United Benefits of America, and Wife IndictedRead the Press Release
Telemarketing Company Misrepresented Health Care Benefit Plans in $15 Million Scheme That Defrauded Thousands Seeking Health Care Coverage
Timothy Thomas, 52, and his wife, Kennan Dozier Thomas, 56, of Franklin, Tenn., were indicted today on charges related to the operation of United Benefits of America, LLC, a telemarketing company that sold health benefits on behalf of various companies, announced United States Attorney David Rivera.
Specifically, Timothy Thomas was indicted on charges of wire fraud, mail fraud, money laundering, and criminal contempt. Also indicted was Thomas’ wife, Kennan Dozier Thomas, who faces charges of money laundering and criminal contempt. The contempt charges are based on the Thomas’ transfer of funds, in violation of an order freezing assets that was issued by the U.S. District Court for the Middle District of Tennessee in a related case. Thomas and his wife had been prohibited by the U.S. District Court from making such transfers.
“Schemes such as this, that target individuals who so desperately need health insurance, are particularly egregious and the U.S. Attorney’s Office and our law enforcement partners will direct all necessary resources to thoroughly investigate and bring justice to those who would inflict such harm and leave such a vulnerable group in the wake of their greed,” said U.S. Attorney David Rivera.
According to the indictment, from 2007 through August 2010, Timothy Thomas operated United Benefits of America, LLC (also known as Health Care America and United States Benefits, among other names). Thomas entered into contracts with various companies to market “limited benefits plans,” “association memberships,” health benefits, health insurance, or other “lifestyle benefits” sold by those companies. Thomas bundled the products of one or more of those companies into “benefits packages” which he marketed to consumers, including self-employed individuals, small business owners, and employees of small businesses.Whenever a representative of United Benefits sold a “benefits package,” Timothy Thomas received a fee or a commission for each product from the company whose product was sold. If consumers kept their “benefits package” for a certain period of time, Thomas received additional commission payments.
The majority of the “benefits packages” sold by United Benefits were actually nothing more than “association memberships,” which included a combination of “limited benefit plans,” accidental life insurance, other “lifestyle benefits,” or various products that entitled the purchaser to certain limited medical benefits or discounts on prescription drugs.
The indictment alleges that Timothy Thomas directed sales representatives to place telephone calls to individuals in an effort to sell the “benefits packages” marketed by United Benefits. The indictment further alleges that the majority of consumers contacted by United Benefits sales representatives were targeted because they did not have major medical health insurance because they had lost their jobs, or they were paying a high price for temporary continuation of group coverage, or they were not eligible for major medical health insurance because they had pre-existing medical conditions.
The indictment also alleges that Timothy Thomas was aware that United Benefits sales representatives made various misrepresentations and material omissions to consumers in order to sell the “bundled products” marketed by United Benefits, including misrepresentations that the “limited health benefits” offered by Untied Benefits were major medical health insurance or the equivalent of major medical health insurance. Sales representatives also misled consumers about the limitations on the coverage offered by United Benefits, intentionally misleading consumers into believing that purchasing a plan offered by United Benefits required the consumer to be approved or accepted, or misleading customers that there was only a limited time during which the consumer could enroll in the plans.
In February 2009, after receiving complaints that sales representatives at United Benefits were grossly misrepresenting the actual benefits of the products they were selling, the Tennessee Department of Insurance searched the United Benefits office and seized voluminous materials and records. In April and May 2009 WSMV-TV in Nashville, Tenn., aired a series of news stories about United Benefits, during which they interviewed consumers complaining that they had been misled by United Benefits employees and televised footage from a hidden camera in which United Benefits employees were seen and heard discussing misleading sales practices.
According to the indictment, Timothy Thomas set up an employee disciplinary system designed to “fine” employees when they made misrepresentations. However, Thomas often waived or reduced the fines, and the “fined” employees continued to receive a monetary bonus for their sales tactics. Moreover, the indictment alleges that when Thomas learned about specific misrepresentations by sales representatives, he took no action to inform consumers or to reverse the sales. In fact, Thomas rarely fired employees for making misrepresentations or material omissions.
According to the indictment, Thomas, in an effort to deceive regulatory authorities, consumers, and companies with whom United Benefits contracted, used other corporate names and caused other individuals to be named as officers in company documents in order to conceal his ownership and control of the company.
The indictment also alleges that Thomas received payments of approximately $15.7 million for the plans offered by United Benefits.
On August 3, 2010, the Federal Trade Commission and the State of Tennessee filed a complaint against United Benefits and Timothy Thomas and Keenan Dozier Thomas, in the United States District Court for the Middle District of Tennessee. On August 4, 2010, a United States District Court judge issued a Temporary Restraining Order that prohibited Timothy Thomas and Kennan Dozier Thomas from transferring any funds owned or controlled by them or by United Benefits. The prohibition applied to any assets of Timothy Thomas, Kennan Dozier Thomas, or United Benefits at the time of the issuance of the order, or any funds which were assets derived from the conduct described in the complaint and obtained after the time of issuance of the order.
According to the indictment, the day following the issuance of the order, Timothy Thomas violated the Court’s order by withdrawing funds totaling over $124,000 from bank accounts he and his wife controlled. Also in violation of the order, on August 6, 2010, Timothy Thomas and Kennan Dozier Thomas asked a friend to deposit into her bank account, approximately $411,000 in commission payments that Timothy Thomas had received through his operation of United Benefits, in order to conceal those funds.
"Deceptively marketing medical discount plans as major medical health insurance creates traumatic hardships for victims,” said A. Todd McCall, Special Agent in Charge of the Memphis Division of the FBI. “Today's indictment represents the collaborative efforts of our law enforcement partners and our commitment to seek justice for victims."
“The U. S. Postal Inspection Service is committed to protecting the American Public from individuals who make misrepresentations to prey on innocent victims,” said Thomas L. Noyes II, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service. “The collaborative effort between federal agencies in this case is an excellent example of the partnerships that focus on bringing those to justice who violate the law and defraud hardworking citizens.”
If convicted, Timothy Thomas faces up to 20 years in prison and a fine of $250,000 on each count of wire fraud and mail fraud, and 20 years in prison and a fine of $500,000 on each count of money laundering. Kennan Dozier Thomas faces up to 20 years in prison and a fine of $500,000 on the one count of money laundering in which she is charged. The court retains discretion as to the penalty to be imposed if they are convicted of criminal contempt.
This case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and the U.S. Department of Labor Employee Benefits Security Administration’s Health Benefits Security Project (HBSP) which focuses on egregious and corrupt health arrangements. The project further seeks to identify potential criminal violations and to assist the victims of crimes related to employee health benefits.
Assistant United States Attorneys Kathryn W. Booth and William F. Abely represent the government.
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.
Illegal Alien, Twice Deported, Arrested in Nashville-Wanted for Murder in El SalvadorRead the Press Release
Cesar Cruz-Marin, 39, a citizen of El Salvador, was arrested yesterday in Nashville and charged with unlawful re-entry into the United States, after being convicted of an aggravated felony, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
Cruz-Marin was arrested following an investigation by Homeland Security Investigations and the U.S. Marshal’s Fugitive Task Force. Agents had been searching for him after being notified that he was a fugitive from El Salvador, where he was wanted for aggravated homicide, which was alleged to have occurred in December 2010. At the time of his arrest, Cruz-Marin was using the name Manuel Aguirre.
According to the criminal complaint, Cruz-Marin was deported to El Salvador from California, in 1998, after being convicted of involuntary manslaughter and serving time in prison for his part in a gang-related murder.
In July 2009 Cruz-Marin was again found in a jail in the United States and was again removed from the U.S. by Immigration officials.
If convicted, Cruz-Marin faces up to 20 years in prison and a $250,000 fine. He is also subject to deportation.This case is being investigated by the U.S. Marshal’s Fugitive Task Force and Homeland Security Investigations. The case is being prosecuted by Asst. U.S. Attorney Clay Lee.
Charges brought by a criminal complaint are merely accusations. All persons are presumed innocent unless and until proven guilty in a court of law.
Tennessee Prisoner Indicted for Anthrax HoaxRead the Press Release
Indictment Alleges That Defendant Mailed Threatening Letter Containing White Powder
To Sumner County District Attorney’s Office in Gallatin, TennesseeJustin Tyler Carter, 28, was indicted by a federal grand jury in Nashville on October 15, 2014 in a 2-count indictment charging him with sending threats through the U.S. Postal Service and conveying false information indicating the use or attempted use of Anthrax, announced David Rivera, U.S. Attorney for the Middle District of Tennessee.
According to the indictment, on April 14, 2014, while Carter was a prisoner at Riverbend Maximum Security Institute in Nashville, he prepared and sent a threatening letter to an Assistant District Attorney at the 18th Judicial District of Tennessee. In the letter, Carter threatened to kill the Assistant District Attorney and the public defender that represented him. The letter also contained white powder that Carter claimed was Anthrax.
“Threats involving the use of Anthrax cause significant disruption in the workplace and to government operations,” said U.S. Attorney David Rivera. “Such threats often exhaust public safety resources and cause needless harm to the public. For those who choose to engage in such conduct, the U.S. Attorney’s Office and our law enforcement partners will act swiftly to neutralize the threat, identify those responsible and bring them to justice.”
“This incident caused tremendous disruption to our office and to the people of Sumner County,” said Ray Whitley, Sumner County District Attorney. “Any threat made to any entity of our justice system, with the intent to disrupt or impede the administration of justice, or in retaliation for justice served, will always be met with a coordinated response that will insure those responsible are held accountable for their actions.”If convicted, Carter faces a maximum sentence of five years in prison and a $250,000 fine for each count.
This case was investigated by the FBI. Assistant United States Attorney Van Vincent is representing the government.
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.