Middle District of Tennessee
Press releases recorded for this federal judicial district.
Honduran Man Arrested for Retaliating Against a Federal WitnessRead the Press Release
A Honduran man was arrested last week in Antioch, Tennessee, after being charged with conspiring to retaliate and retaliating against a witness (Individual A) who testified in a federal trial.
According to court documents, Bayron Wuifredo Santos-Recarte, 25, and his co-conspirators allegedly agreed to, and did, physically assault Individual A because Individual A testified during a racketeer influenced and corrupt organization (RICO) conspiracy federal trial in spring 2023 involving the Mara Salvatrucha street gang, commonly known as MS-13. On Nov. 4, 2023, Santos-Recarte and his co-conspirators allegedly took Individual A by force and at gunpoint and placed him in a truck where they tied his hands together. They allegedly interrogated Individual A for hours about his trial testimony and repeatedly assaulted him before Individual A was able to escape.
Santos-Recarte is charged with conspiring to retaliate and retaliating against a federal witness. If convicted, Santos-Recarte faces a maximum penalty of 20 years in prison for conspiring to retaliate against a federal witness and a maximum penalty of life in prison for retaliating against a federal witness. Santos-Recarte is currently in federal custody.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Acting U.S. Attorney Thomas J. Jaworski for the Middle District of Tennessee, Special Agent in Charge Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division, and Special Agent in Charge Rana Saoud of Homeland Security Investigations (HSI) Nashville made the announcement.
ATF, HSI, and the Metropolitan-Nashville Police Department are investigating the case.
Trial Attorney Matthew Hoff of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorneys Ahmed Safeeullah and Brooke Farzad for the Middle District of Tennessee are prosecuting this case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Nashville Man Found Guilty of Federal Narcotics and Firearms ChargesRead the Press Release
NASHVILLE – On February 20, 2024, a jury in the Middle District of Tennessee found Michael Davis guilty of attempting to possess with intent to distribute more than five kilograms of cocaine and being a convicted felon in possession of a firearm, announced United States Attorney Henry C. Leventis.
According to evidence presented at trial, in October 2020, Davis met with two confidential informants at a restaurant in Nashville, Tennessee, to discuss purchasing large amounts of cocaine. The following day, Davis brought a loaded handgun and more than $300,000 in cash to a Pilot Travel Center to purchase over five kilograms of cocaine from the informants. Federal agents arrested Davis on the scene after a brief foot chase.
“We are committed to fighting drug trafficking in Middle Tennessee,” said United States Attorney Henry C. Leventis. “The verdict in this case underscores that commitment and ensures this defendant will be held accountable for his crimes.”
Davis will be sentenced on June 24, 2024, by United States District Judge William L. Campbell, Jr. Davis faces a mandatory minimum sentence of ten years and a maximum sentence of life in federal prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Drug Enforcement Administration, and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Zachary Hinkle and Robert Levine prosecuted the case.
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Two Men Indicted for Narcotics and Firearms Offenses After More Than Four Pounds of Fentanyl and Nearly Thirty-five Pounds of Cocaine Found in Downtown Nashville High-Rise ApartmentRead the Press Release
Nashville – Two Nashville, Tennessee, men are facing federal charges after agents executed multiple search warrants, including a search warrant on a downtown Nashville high-rise apartment, and discovered evidence of large-scale narcotics distribution — including more than four pounds of fentanyl, nearly thirty-five pounds of cocaine, approximately $350,000 in cash, and firearms — announced United States Attorney Henry C. Leventis.
The indictment returned by the grand jury charges Brandon Ostein, a/k/a “Snake,” 37, and Anthony Gloss, 40, with conspiring to possess with intent to distribute fentanyl and cocaine. Both men are also charged with distributing and possessing with intent to distribute fentanyl and cocaine, as well as weapons counts based on firearms recovered during searches of their Nashville apartments. The indictment also contains a forfeiture allegation in which the government seeks to forfeit any property derived from the proceeds of the crimes, including the approximately $350,000 in cash and three firearms.
If convicted, both men face no less than 30 years’ imprisonment and up to life imprisonment.
This case was investigated by the Tennessee Bureau of Investigation, Drug Enforcement Administration, Murfreesboro Police Department, and Metropolitan Nashville Police Department. Assistant U.S. Attorney Nicholas J. Goldin is prosecuting the case.
An indictment is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Hickman County Man Sentenced to Fifteen Years in Federal Prison for Possession with Intent to Distribute Methamphetamine and Firearms OffensesRead the Press Release
NASHVILLE – Dustin L. Truett, 40, of Lyles, Tennessee, was sentenced today to fifteen years in prison, followed by five years of supervised release, announced United States Attorney Henry C. Leventis. In July 2023, Truett pled guilty to a three-count Indictment charging him with Possession with Intent to Distribute Methamphetamine, Possession of a Firearm in Furtherance of Drug Trafficking, and Possession of a Firearm by a Previously Convicted Felon.
The convictions stemmed from an incident in December 2020, when law enforcement officers executed a search warrant at Truett’s residence. During the search, they recovered a gun safe, two bolt-action rifles, a bolt-action shotgun, digital scales, and ammunition. Inside the safe, they recovered $33,765 in cash, a stolen AR-style semi-automatic rifle, and 319 grams of 92% pure methamphetamine. Truett had previously been convicted of multiple felony drug offenses and was prohibited by law from possessing firearms.
The case was investigated by the Hickman County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Rachel M. Stephens prosecuted the case.
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Middle Tennessee Man Charged with Unlawful Possession and Transfer of Firearm SilencerRead the Press Release
NASHVILLE – On February 5, 2024, Paul Faye Sr., 55, of Cunningham, Tennessee, was arrested after being charged with the unlawful possession and transfer of an unregistered firearm silencer, announced United States Attorney for the Middle District of Tennessee Henry C. Leventis.
The criminal complaint alleges that Faye spoke with an undercover FBI agent for months about a plan to travel to the United States – Mexico border to commit acts of violence against migrants and federal agents. In January 2024, Faye illegally transferred a silencer to an undercover agent with the FBI as they prepared to travel to the border to target migrants entering the United States.
After taking Faye into custody, law enforcement searched his property in Cunningham, Tennessee and recovered numerous firearms, including a short-barreled shotgun and a Springfield XD pistol, another firearm silencer, a militia patch, multiple jars of Tannerite, a brand of explosive targets that can be converted into improvised explosive devices, and hundreds of rounds of ammunition.
This case is being investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Josh Kurtzman is prosecuting the case.
A criminal complaint is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Columbia Man Found Guilty of Federal Firearms Charges After a Two-Hour Shootout with Police OfficersRead the Press Release
NASHVILLE – On February 2, 2024, a jury in the Middle District of Tennessee found Jamal Gardner guilty of being a convicted felon in possession of a firearm, announced United States Attorney Henry C. Leventis.
According to evidence presented at trial, on February 2, 2019, Gardner beat and tried to strangle the mother of his children. A little over an hour later, a Columbia Police officer initiated a traffic stop of a vehicle for reckless driving. As the officer approached the vehicle, the driver got out holding an AR-15 rifle and immediately began firing at the officer. As the officer took cover and returned fire, the driver, later identified as Jamal Gardner, fled into a nearby residence and continued firing at responding officers. Over the next two hours, Gardner fired approximately 80 rounds from at least four firearms, before escaping from the house. Gardner fled the scene and was arrested a few days later in Michigan.
“This prosecution underscores the Justice Department’s commitment to hold violent criminals accountable, especially those that are brazen enough to attack law enforcement as the defendant did in this case,” said United States Attorney Henry C. Leventis.
Gardner will be sentenced a later date by United States District Court Judge William L. Campbell, Jr. If the court finds that Gardner qualifies as an Armed Career Criminal, he will be sentenced to a mandatory minimum of fifteen years to life in federal prison.
Additional charges relating to Gardner’s attempted murder of multiple Columbia Police Department officers and his aggravated assault on his former domestic partner are pending in state court. He remains presumed innocent of those state charges.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Columbia Police Department, and the 22nd Judicial District Attorney’s Office. Assistant U.S. Attorneys Josh Kurtzman and Phil Wehby prosecuted the case.
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eBay to Pay $59 Million to Settle Controlled Substances Act Allegations Related to Pill Presses Sold Through its WebsiteRead the Press Release
eBay Inc., an e-commerce company headquartered in San Jose, California, has agreed to pay $59 million and to enhance its compliance program to resolve allegations that it violated the Controlled Substances Act (CSA) in connection with thousands of pill presses and encapsulating machines that were sold through its website.
Pill presses and encapsulating machines can be used by criminals to manufacture illegal drugs. When used with a mold, stamp, or die mimicking commonly prescribed controlled substances, pill presses are capable of producing counterfeit pills that appear indistinguishable from legitimate pharmaceutical drugs, including pills that are sometimes laced with fentanyl.
The CSA regulates certain pharmaceutical manufacturing equipment, including pill presses and encapsulating machines, by requiring identity verification of purchasers, record-keeping, and reporting to the Drug Enforcement Administration (DEA). These requirements are designed to prevent individuals who intend to use these machines illegally from obtaining them and to ensure that the machines are traceable to the end user.
The United States alleged that eBay did not comply with these CSA requirements for thousands of pill presses and encapsulating machines that were sold through its website, including high-capacity pill presses capable of producing thousands of pills per hour. The United States’ investigation further found that hundreds of eBay’s pill press buyers also purchased counterfeit molds, stamps, or dies, allowing them to produce pills that mimicked the products of legitimate pharmaceutical companies, and that many of eBay’s pill press buyers have been successfully prosecuted in connection with trafficking illegal counterfeit pills.
“Counterfeit pills laced with fentanyl are a significant contributor to the deadly overdose epidemic,” said Associate Attorney General Vanita Gupta, Chair of the Justice Department's Opioid Epidemic Civil Litigation Task Force. “The Department is committed to using all available enforcement measures to ensure that companies involved in selling the equipment that makes it possible to create these dangerous pills comply with the Controlled Substances Act.”
“Americans deserve to be protected from the dangers of counterfeit prescription pills,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Civil Division will continue to work with our law enforcement partners to ensure that all those involved in the sale of counterfeit pills and the equipment used to manufacture counterfeit pills are held accountable.”
“Through its website, eBay made it easy for individuals across the country to obtain the type of dangerous machines that are often used to make counterfeit pills. Our investigation revealed that some of these machines were even sold to individuals who were later convicted of drug related crimes,” said U.S. Attorney Nikolas P. Kerest for the District of Vermont. “Our office is committed to holding accountable those who have contributed to the devastating fentanyl crisis we are facing in our communities. Today’s settlement is an important step to ensuring that e-commerce companies do their part by complying with regulations that are designed to protect the public.”
“eBay’s failure to comply with the Controlled Substances Act’s basic reporting and record keeping requirements for the sales of pill presses contributed to the proliferation of counterfeit pills in this country by allowing private citizens to set up pill factories in their homes and to do so without detection,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “This settlement holds eBay accountable for its compliance lapses, serves as a reminder to other e-commerce companies that the Justice Department will enforce these requirements, and will help keep these items out of the hands of criminals moving forward.”
“Fentanyl — pressed into fake pills that look like real prescription medications — is killing Americans. Drug traffickers buy the tools to make fake pills, like pill presses, online,” said DEA Administrator Anne Milgram. “eBay and other e-commerce platforms must do their part to protect the public. And when they do not, DEA will hold them accountable.”
In addition to the monetary settlement, eBay also has agreed to maintain and enhance its compliance program with respect to its prohibited and restricted items policy as it pertains to sales of pill presses, counterfeit molds, stamps, and dies, and encapsulating machines.
The matter was handled by Trial Attorneys Scott B. Dahlquist and Deborah Sohn, Senior Trial Attorney Sarah Williams, Senior Counsel for Policy and Compliance Shannon Pedersen, Senior Deputy Director of Criminal Litigation A.J. Nardozzi, Director Amanda Liskamm, and Deputy Assistant Attorney General Arun G. Rao of the Civil Division’s Consumer Protection Branch, Assistant U.S. Attorneys Kaitlin E. Hazard and Lauren Almquist Lively and Civil Chief Jules Torti for the District of Vermont, and Assistant U.S. Attorney Wynn Shuford, Deputy Civil Chief Ellen Bowden McIntyre, and Executive Assistant U.S. Attorney Mark Wildasin for the Middle District of Tennessee.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
SettlementeBay to Pay $59 Million to Settle Controlled Substances Act Allegations Related to Pill Presses Sold Through its WebsiteRead the Press Release
NASHVILLE – eBay Inc., an e-commerce company headquartered in San Jose, California, has agreed to pay $59 million and to enhance its compliance program to resolve allegations that it violated the Controlled Substances Act (CSA) in connection with thousands of pill presses and encapsulating machines that were sold through its website.
Pill presses and encapsulating machines can be used by criminals to manufacture illegal drugs. When used with a mold, stamp, or die mimicking commonly prescribed controlled substances, pill presses are capable of producing counterfeit pills that appear indistinguishable from legitimate pharmaceutical drugs, including pills that are sometimes laced with fentanyl.
The CSA regulates certain pharmaceutical manufacturing equipment, including pill presses and encapsulating machines, by requiring identity verification of purchasers, record-keeping, and reporting to the Drug Enforcement Administration. These requirements are designed to prevent individuals who intend to use these machines illegally from obtaining them and to ensure that the machines are traceable to the end user.
The United States alleged that eBay did not comply with these CSA requirements for thousands of pill presses and encapsulating machines that were sold through its website, including high-capacity pill presses capable of producing thousands of pills per hour. The United States' investigation, which began in the Middle District of Tennessee, further found that hundreds of eBay's pill press buyers also purchased counterfeit molds, stamps, or dies, allowing them to produce pills that mimicked the products of legitimate pharmaceutical companies, and that many of eBay's pill press buyers have been successfully prosecuted in connection with trafficking illegal counterfeit pills.
“Counterfeit pills laced with fentanyl are a significant contributor to the deadly overdose epidemic,” said Associate Attorney General Vanita Gupta, Chair of the Department of Justice’s Opioid Epidemic Civil Litigation Task Force. “The Department is committed to using all available enforcement measures to ensure that companies involved in selling the equipment that makes it possible to create these dangerous pills comply with the Controlled Substances Act.”
“eBay’s failure to comply with the Controlled Substances Act’s basic reporting and record keeping requirements for the sales of pill presses contributed to the proliferation of counterfeit pills in this country by allowing private citizens to set up pill factories in their homes and to do so without detection,” said United States Attorney for the Middle District of Tennessee, Henry C. Leventis. “This settlement holds eBay accountable for its compliance lapses, serves as a reminder to other e-commerce companies that the Department of Justice will enforce these requirements, and will help keep these items out of the hands of criminals moving forward.”
“Americans deserve to be protected from the dangers of counterfeit prescription pills,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The Civil Division will continue to work with our law enforcement partners to ensure that all those involved in the sale of counterfeit pills and the equipment used to manufacture counterfeit pills are held accountable.”
“Through its website, eBay made it easy for individuals across the country to obtain the type of dangerous machines that are often used to make counterfeit pills. Our investigation revealed that some of these machines were even sold to individuals who were later convicted of drug related crimes,” said United States Attorney for the District of Vermont, Nikolas P. Kerest. “Our office is committed to holding accountable those who have contributed to the devastating fentanyl crisis we are facing in our communities. Today’s settlement is an important step to ensuring that e-commerce companies do their part by complying with regulations that are designed to protect the public.”
“Fentanyl—pressed into fake pills that look like real prescription medications—is killing Americans. Drug traffickers buy the tools to make fake pills, like pill presses, online,” said DEA Administrator Anne Milgram. “eBay and other e-commerce platforms must do their part to protect the public. And when they do not, DEA will hold them accountable.”
In addition to the monetary settlement, eBay also has agreed to maintain and enhance its compliance program with respect to its prohibited and restricted items policy as it pertains to sales of pill presses, counterfeit molds, stamps, and dies, and encapsulating machines.
The matter was handled by Trial Attorneys Scott B. Dalquist and Deborah Sohn, Senior Trial Attorney Sarah Williams, Senior Counsel for Policy and Compliance Shannon Pedersen, Senior Deputy Director of Criminal Litigation A.J. Nardozzi, Director Amanda Liskamm, and Deputy Assistant Attorney General Arun G. Rao of the Civil Division's Consumer Protection Branch, Assistant U.S. Attorneys Kaitlin E. Hazard and Lauren Almquist Lively and Civil Chief Jules Torti of the U.S. Attorney's Office for the District of Vermont, and Assistant U.S. Attorney Wynn Shuford, Deputy Civil Chief Ellen Bowden McIntyre, and Executive Assistant U.S. Attorney Mark H. Wildasin of the U.S. Attorney's Office for the Middle District of Tennessee.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Six Defendants Convicted of Federal Civil Rights Conspiracy and Freedom of Access to Clinic Entrances (FACE) Act Offenses for Obstructing Access to a Reproductive Health Services Facility in Mount Juliet, TennesseeRead the Press Release
NASHVILLE – A federal jury convicted six defendants today of federal civil rights offenses arising out of their blockade of a reproductive health care clinic in Mount Juliet, Tennessee, on March 5, 2021. The defendants were each convicted of a felony conspiracy against rights and a Freedom of Access to Clinic Entrances Act (FACE Act) offense.
According to evidence presented at trial, Chester Gallagher, Heather Idoni, Calvin Zastrow, Coleman Boyd, Paul Vaughn and Dennis Green engaged in a conspiracy to prevent the clinic employees from providing, and patients from receiving, reproductive health services, a civil right secured by the FACE Act. As part of the conspiracy, Idoni, Zastrow, Boyd and Green traveled to Tennessee from other states to participate in the clinic blockade, and Gallagher and Vaughn stalled the Mount Juliet Police Department through negotiations that Gallagher referred to as a delay tactic. Evidence at trial further proved that the defendants violated the FACE Act by using physical obstruction to interfere with the clinic’s employees and a patient because the clinic was providing, and the patient sought, reproductive health services.
“These defendants are being held accountable for unlawfully obstructing access to reproductive health services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to enforce the FACE Act to protect the rights of those who provide and those who seek access to such services.”
“These defendants knowingly chose to violate laws they disagreed with,” said United States Attorney Henry C. Leventis. “The jury’s verdict today is a victory for the rule of law in this country and a reminder that we cannot pick and choose which laws we follow. It is also a testament to the outstanding work done in this case by the trial team and our law enforcement partners.”
A sentencing hearing has been set for July 2. The defendants each face up to a maximum of 10 and a half years in prison, three years of supervised release and fines of up to $260,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Memphis Field Office, Nashville Resident Agency investigated the case.
The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Tennessee prosecuted the case.
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Six Defendants Convicted of Federal Civil Rights Conspiracy and Freedom of Access to Clinic Entrances (FACE) Act Offenses for Obstructing Access to Reproductive Health Services in TennesseeRead the Press Release
A federal jury convicted six defendants today of federal civil rights offenses arising out of their blockade of a reproductive health care clinic in Mount Juliet, Tennessee, on March 5, 2021. The defendants were each convicted of a felony conspiracy against rights and a Freedom of Access to Clinic Entrances Act (FACE Act) offense.
According to evidence presented at trial, Chester Gallagher, Heather Idoni, Calvin Zastrow, Coleman Boyd, Paul Vaughn and Dennis Green engaged in a conspiracy to prevent the clinic employees from providing, and patients from receiving, reproductive health services, a civil right secured by the FACE Act. As part of the conspiracy, Idoni, Zastrow, Boyd and Green traveled to Tennessee from other states to participate in the clinic blockade, and Gallagher and Vaughn stalled the Mount Juliet Police Department through negotiations that Gallagher referred to as a delay tactic. Evidence at trial further proved that the defendants violated the FACE Act by using physical obstruction to interfere with the clinic’s employees and a patient because the clinic was providing, and the patient sought, reproductive health services.
“These defendants are being held accountable for unlawfully obstructing access to reproductive health services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to enforce the FACE Act to protect the rights of those who provide and those who seek access to such services.”
“These defendants knowingly chose to violate laws they disagreed with,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “The jury’s verdict today is a victory for the rule of law in this country and a reminder that we cannot pick and choose which laws we follow. It is also a testament to the outstanding work done in this case by the trial team and our law enforcement partners.”
A sentencing hearing has been set for July 2. The defendants each face up to a maximum of 10 and a half years in prison, three years of supervised release and fines of up to $260,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Memphis Field Office, Nashville Resident Agency investigated the case.
The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Tennessee prosecuted the case.
Three Members of Drug Trafficking Organization Found with over 400 Pounds of MethamphetamineRead the Press Release
NASHVILLE – A joint investigation by the U.S. Department of Homeland Security - Homeland Security Investigations and the Wilson County Sheriff’s Office has resulted in the arrest of three individuals for conspiring to distribute over 400 pounds of methamphetamine in Nashville, Tennessee, announced United States Attorney Henry C. Leventis.
The complaint charges Zachery Manier, 49, Danny Ray Jones, Jr., 48, and Reginald Levon Cooper, 40, with conspiracy to possess with intent to distribute over 500 grams of a mixture or substance containing methamphetamine.
During the investigation, agents learned that a target Drug Trafficking Organization (“DTO”) was using the U.S. Postal Service to ship drugs to various residences in the Middle District of Tennessee. As part of the investigation, on January 24, 2024, law enforcement officers executed a search warrant at a Nashville residence believed to be a stash house for the DTO, where agents recovered over 400 pounds of methamphetamine. Manier, Jones, and Cooper were arrested at the residence.
This case was investigated by the Department of Homeland Security - Homeland Security Investigations and the Wilson County Sheriff’s Office with substantial assistance provided by the Drug Enforcement Administration, United States Postal Inspection Service, and the Tennessee Bureau of Investigation. Assistant U.S. Attorneys Brooke Farzad and Mitchell Galloway are prosecuting the case.
A Criminal Complaint is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Drug Trafficking Complaint Follows Seizure of Thirty-two Kilograms of CocaineRead the Press Release
NASHVILLE – A joint investigation by the Drug Enforcement Administration and the Williamson County Sheriff’s Office has resulted in the arrest of three individuals for possessing with intent to distribute approximately 32 kilograms of cocaine in Spring Hill, Tennessee, announced United States Attorney Henry C. Leventis.
The complaint charges Karla Lissette Hernandez, 41, Karla L. Ayala Hernandez, 18, and Ronald Giovanni Flores, 37, all from Houston, Texas, with possession with intent to distribute cocaine.
On January 17, 2024, the three were travelling in a truck which a Williamson County Sheriff’s Deputy determined was speeding and following another vehicle too closely in snowy and icy conditions. None of the occupants had a valid driver’s license. A K9 indicated the possible presence of narcotics in the vehicle. A subsequent search of the vehicle led to the recovery of 32 kilograms of cocaine wrapped in black electrical tape, 30 of which were concealed inside the door panels of the truck.
Assistant U.S. Attorney Rachel M. Stephens is prosecuting the case.
A Criminal Complaint is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Nashville Man Sentenced to 32 Months in Federal Prison for Assault Committed as an Escaped Federal InmateRead the Press Release
NASHVILLE -- Marchello Shobe, who committed a violent assault after escaping from a federal facility, was sentenced to 32 months in federal prison for his actions, announced United States Attorney Henry C. Leventis.
Shobe, 42 of Nashville, Tennessee, had previously been convicted of violent felonies. He was sentenced to ten years in federal prison in 2011 for throwing a Molotov cocktail at an ex-girlfriend.
In March of 2021, Shobe arrived at a halfway house maintained by the U.S. Bureau of Prisons and designed to help inmates transition back to civilian life from a prison setting. He escaped from the halfway house barely a month after arriving there. The day after he escaped, on April 21, 2021, Shobe violently assaulted a Nashville woman in a business parking lot in Nashville. Further investigation revealed that he had previously exchanged letters with the woman while he was in prison.
Shobe was later indicted by a federal grand jury and convicted of Escape. Yesterday, U.S. District Judge Eli Richardson sentenced Shobe to 32 months in federal prison and ordered that this sentence be served consecutively to the prior sentence Shobe received for assaulting the woman while on escape status. Shobe was also sentenced to three years of supervised release to follow his prison sentence.
“This defendant has a long history of violence,” said United States Attorney Henry C. Leventis. “Today’s sentence holds him accountable for his actions and should send a message that those who escape from federal custody will be prosecuted to the fullest extent under the law.”
This case was investigated by the United States Marshals Service and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Robert E. McGuire prosecuted the case for the United States.
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Nashville Man Sentenced to Nearly 14 Years in Federal Prison for Distributing Fentanyl, Methamphetamine, and HeroinRead the Press Release
NASHVILLE – Antonio Daniels, 43, of Nashville, Tennessee, was sentenced today to 165 months, or nearly 14 years, in federal prison to be followed by 5 years of supervised release, announced United States Attorney Henry C. Leventis. In July 2023, Daniels pled guilty to a four-count Indictment charging him with distributing, and possessing with the intent to distribute, fentanyl, methamphetamine, and heroin.
On four separate occasions between November 2020 and January 2021, law enforcement officers, using a confidential informant, made controlled purchases of fentanyl, methamphetamine, and heroin from Daniels near his residence on Lenore Street in Nashville. In total across the four sales, Daniels distributed approximately 61.3 grams of fentanyl, 394.5 grams of methamphetamine, and 7.2 grams of heroin to the confidential informant.
“Fentanyl and other illicit drugs sold by this defendant are wreaking havoc in our communities and leaving carnage in their wake,” said United States Attorney Henry C. Leventis. “Today’s sentence will remove this defendant from the streets for over a decade and is the latest illustration of my office’s commitment to holding fentanyl dealers accountable.”
The case was investigated by the Drug Enforcement Administration, Tennessee Bureau of Investigation, and the Crossville Police Department. Assistant United States Attorneys Nicholas J. Goldin and Ahmed A. Safeeullah prosecuted the case.
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Federal Drug Trafficking Complaint Follows Seizure of Thirteen Pounds of Fentanyl-Laced PillsRead the Press Release
NASHVILLE – A joint investigation by the Drug Enforcement Administration and the Metropolitan Nashville Police Department has resulted in the arrest of three individuals for conspiring to distribute over 13 pounds of fentanyl-mixed pills in Nashville, Tennessee, announced United States Attorney Henry C. Leventis.
The complaint charges Karl Chandler, Jr., 36, Jacquez McCoy, 26, and Branelle Brooks, 23, with conspiracy to possess with intent to distribute a mixture or substance containing fentanyl. Chandler is also charged with possession of a firearm by a convicted felon.
On January 4, 2024, agents intercepted a suspicious package that had been shipped to Nashville from Phoenix, Arizona. Upon searching the package, they discovered a substantial quantity of pills containing fentanyl. The pills, which bore the same color, shape, and imprints as legitimate oxycodone 30 milligram pills, were concealed in two vacuum-sealed bags hidden inside of air mattresses. In total, the package contained approximately 6.27 kilograms, or 13.8 pounds, of suspected fentanyl-laced counterfeit pills. Agents re-assembled the package without the narcotics and followed those who retrieved it upon delivery, resulting in the arrests of Chandler, McCoy and Brooks. Federal agents also recovered a firearm as part of the investigation.
Assistant U.S. Attorney Emily E. Petro is prosecuting the case.
A complaint is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Memphis-Based Methodist Le Bonheur Healthcare and Methodist Healthcare-Memphis Hospitals Pay $7.25 Million to Settle Allegations that They Violated the False Claims ActRead the Press Release
NASHVILLE – United States Attorney Henry C. Leventis announced today that Methodist Le Bonheur Healthcare and Methodist Healthcare-Memphis Hospitals (“Methodist”) have paid $7,250,000 to resolve allegations that Methodist violated the False Claims Act. This settlement resolves allegations that Methodist caused the submission of false claims to Medicare that resulted from improper financial arrangements between Methodist and the West Clinic, PLLC (“the West Clinic”), including kickbacks that Methodist paid to the West Clinic as part of its affiliation with the West Clinic.
“Federal law prohibits money from influencing where a doctor refers a patient for treatment to keep doctors focused solely on what is best for the patient,” said United States Attorney Henry C. Leventis. “We contend that Methodist’s affiliation with the West Clinic ran afoul of that law. When hospitals pay kickbacks to physician practices, regardless of what form those kickbacks take, they can expect to be the focus of our enforcement efforts.”
In its complaint, the United States alleged that, from December 2011 until February 2019, Methodist had a multi-agreement affiliation with the West Clinic and the University of Tennessee Health Science Center. The affiliation agreements with the West Clinic included an Asset Purchase Agreement, Management Services Agreement, Leased Employee and Administrative Services Agreement, and Professional Services Agreement. According to the complaint, Methodist used these agreements as a vehicle to pay kickbacks to the West Clinic in part to induce the West Clinic to refer Medicare beneficiaries to Methodist. The affiliation ended in 2019 and is no longer ongoing.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Jeffrey Liebman and David Stern. Liebman was a former president of Methodist University Hospital, and Stern was a former Dean of the University of Tennessee Health Science Center. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The Act also permits the United States to intervene and take over the litigation and receive a portion of any recovery, such as the United States did here. Liebman and Stern will receive a share of the recovery. The qui tam is captioned United States ex rel. Liebman v. Methodist Le Bonheur Healthcare, et al., Case No. 3:17-cv-00902 (M.D. Tenn.).
The investigation and resolution of this matter illustrates the government’s emphasis on combatting healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was handled by Assistant U.S. Attorney Ellen Bowden McIntyre.
The claims settled by the settlement are allegations only, and there has been no determination of liability.
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Metro Nashville Agrees to Settle Allegations that it Violated the Americans with Disabilities ActRead the Press Release
NASHVILLE – United States Attorney Henry C. Leventis for the Middle District of Tennessee announced today that the United States has reached an agreement with the Metropolitan Government of Nashville and Davidson County, Tennessee (“Metro Nashville”) to settle allegations that Metro Nashville violated Title II of the Americans with Disabilities Act (“ADA”) by failing to provide reasonable modifications to policies to allow disabled individuals who are unable to attend public meetings in person to attend remotely. As part of the settlement, Metro Nashville will revise its ADA policies and pay $500.00 to the complainant who brought this issue to the United States’ attention.
“We are committed to enforcing the rights of persons with disabilities in Tennessee,” said United States Attorney Henry C. Leventis. “Individuals with disabilities that prevent them from in-person attendance at public meetings should receive reasonable accommodations to allow them to fully participate and vote in such meetings. It is the right thing to do and federal law requires as much.”
The United States alleged that Metro Nashville failed to provide the complainant with a reasonable accommodation, called a modification in the Title II context, that would permit the complainant to vote in public meetings virtually. The complainant’s disability prevented the complainant from attending in-person meetings of a public committee of Metro Nashville without severe discomfort. The complainant requested a modification to attend and vote in meetings of the committee by virtual or other electronic means, but Metro Nashville refused to grant a modification.
Under the terms of the Settlement Agreement, where an individual’s disability prevents that person from attending meetings of a local government board, commission, or other body in person, Metro Nashville will permit such individuals to fully participate virtually. Metro Nashville has also agreed to update its policies and procedures to fully implement this Agreement. As a result of this settlement, the participation of a person with a disability in virtual meetings shall not be diminished in any way, and they shall be entitled to vote, count towards a quorum, make and second motions, and otherwise permitted to participate in the same manner in which they would have if they were attending public meetings in person.
The civil claims settled by this Settlement Agreement are allegations only, and there has been no determination of liability.
Assistant U.S. Attorney Mike Tackeff investigated the complaint and negotiated the Settlement Agreement.
The Department of Justice has a number of publications available to assist entities in complying with the ADA including a Technical Assistance Publication entitled: ADA Requirements: Effective Communication and a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings. For more information on the ADA and to access these publications, visit www.ada.gov or call the Justice Department’s toll-free ADA information Line at 800-514-0301 or 800-514-0383 (TDD). ADA complaints may be filed by email to [email protected].
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Mississippi Man Sentenced to 18 Months in Federal Prison on Medicare Fraud Conspiracy ChargesRead the Press Release
NASHVILLE – Vernon Sanders, 57 of Meridian, Mississippi, was sentenced yesterday to 18 months in federal prison followed by 3 years of supervised release, as well as restitution of more than $3.3 million, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee. Sanders also was ordered to forfeit $383,260. In December 2020, Sanders pleaded guilty to a one-count Information charging him with conspiracy to defraud the United States and to violate the Anti-Kickback Statute through the payment and receipt of illegal health care kickbacks between 2016 and 2020.
Sanders was the owner of the marketing company FastScripts, LLC, and a patient broker who referred Medicare beneficiaries to laboratories in exchange for the payment of kickbacks. Sanders paid marketers kickbacks to recruit Medicare patients to provide their Medicare information and genetic material, which Sanders then sent to laboratories for Cancer genomic (“CGx”) testing in exchange for the payment of kickbacks from the laboratories. Sanders also paid kickbacks to doctors for signed orders for CGx tests, without regard for the medical necessity of the tests. Sanders was aware that these tests had been obtained through kickbacks, including kickbacks he paid to Individual 1, a co-conspirator physician in Loretto, Tennessee. In December 2020, Individual 1 pleaded guilty to conspiracy to commit health care fraud in the Middle District of Tennessee, and was also sentenced to 18 months in prison.
As a result of Sanders’ participation in the conspiracy, Medicare paid laboratories approximately $3,381,434 in reimbursements they were not entitled to receive because the patients had been procured through kickbacks, including orders signed by the physician in Loretto. From approximately June 2016 to January 2020, Sanders received approximately $383,260 in illegal kickback payments from laboratories and other marketing co-conspirators.
“Genetic testing fraud schemes bilk the Medicare system out of millions of dollars and trick Medicare beneficiaries into providing their personal information and genetic material,” said United States Attorney Henry C. Leventis. “In these national fraud schemes, marketers, like the defendant, together with unscrupulous doctors and laboratories, exploit vulnerable citizens as well as our federal health care programs. We remain committed to rooting out and prosecuting such crimes.”
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Sarah K. Bogni prosecuted the case.
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Gallatin Man Convicted for December 2019 Violent Crime SpreeRead the Press Release
NASHVILLE - A federal jury convicted Lazavion Kern, 22, of Gallatin, Tennessee, of multiple armed robbery and firearms offenses yesterday, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
During a three-week span in December 2019, Kern robbed four convenience stores in Gallatin and Portland, Tennessee, taking thousands of dollars from the clerks. As part of the final robbery, Kern repeatedly pistol-whipped the clerk, seriously injuring him. Kern was charged by a federal grand jury in January of 2023 with one count of Hobbs Act robbery for each of the four robberies, and two counts of brandishing a firearm during and in relation to a crime of violence. Yesterday, a federal jury convicted him on each count.
“This defendant went on a three-week crime spree, violently attacked an innocent store clerk, and bragged about his actions on social media,” said United States Attorney Henry C. Leventis. “The jury’s verdict ensures that he will be held accountable for those actions and that he will be removed from society for at least 14 years. I commend the excellent work of the trial team, the FBI, and our local law enforcement partners that made this outcome possible.”
“This conviction should send a clear message that the FBI and our law enforcement partners make it a priority to bring to justice those who resort to armed robbery for ill-gotten financial gains,” said Special Agent in Charge Douglas DePodesta of the FBI Memphis Field Office. “Violent crimes will not be tolerated, and law enforcement will not rest, until offenders are caught, prosecuted and held accountable for their actions.”
Kern faces a mandatory minimum sentence of 14 years, and up to life, in federal prison. He will be sentenced by United States District Judge William L. Campbell, Jr.
Kern was aided in each robbery by Antonio Jones and, in the third robbery, by Michael Sanchez Fitts. Jones and Fitts have pleaded guilty to felonies.
This case was investigated by the Federal Bureau of Investigation, the Gallatin Police Department, the Sumner County Sheriff’s Office, and the Portland Police Department. Significant assistance was provided by the United States Marshals Service. Assistant U.S. Attorneys Joseph P. Montminy and Taylor J. Phillips are prosecuting the case.
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Federal Indictment Unsealed Charging Six Davidson County Residents with Drug Trafficking and Firearms OffensesRead the Press Release
NASHVILLE – A joint investigation by federal and local law enforcement has resulted in the indictment of six individuals for illegally distributing substantial quantities of controlled substances in and around Nashville, Tennessee, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
The indictment, which was unsealed today, charges Julius Johnson, 40, Amber Shadonna Johnson, 42, David Marsh, 54, Antonio Jumper, 44, Archie Henry, 38, and Eldred Howard, 37, all residents of Davidson County, Tennessee, with conspiracy to distribute and possession with intent to distribute heroin, fentanyl, methamphetamine, cocaine, oxycodone, and marijuana. Julius Johnson, Amber Shadonna Johnson, and Eldred Howard are also charged with possession of a firearm in furtherance of a drug crime and possession of a firearm by a felon.
As part of the investigation, in April 2023, law enforcement officers executed search warrants at multiple locations throughout Nashville, including a residence in North Nashville where substantial quantities of fentanyl, methamphetamine, and cocaine were recovered. In total, over the course of the months-long investigation, law enforcement recovered approximately 2.2 kilograms of methamphetamine, 600 grams of fentanyl, 200 grams of cocaine, and 45 grams of marijuana. Federal agents also recovered four firearms.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is being investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Metropolitan Nashville Police Department, with meaningful assistance from the Rutherford County Sheriff’s Office, the Dickson County Sheriff’s Office, the Tennessee Highway Patrol, the Murfreesboro Police Department, IRS Criminal Investigation and U.S. Postal Inspection Service. Assistant U.S. Attorney Nani M. Gilkerson is prosecuting the case.
An indictment is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Jury Convicts Three Men in Murder for Hire SchemeRead the Press Release
NASHVILLE – A federal jury returned guilty verdicts against three men indicted in a murder-for-hire scheme, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
Erik Maund, 48, and Bryon Brockway, 48, both of Austin, Texas and Adam Carey, 32, of Richlands, North Carolina were convicted of murder-for-hire with death resulting after a two-and-a-half-week jury trial. Brockway and Carey were also convicted of conspiracy to commit kidnapping and kidnapping with death resulting. A fourth member of the conspiracy, Gilad Peled, 49, of Austin, Texas had previously pleaded guilty to the same charges and agreed to cooperate with the United States by testifying at trial.
According to evidence admitted at the trial, Maund had previously had an extramarital affair with Holly Williams of Nashville. In March of 2020, William Lanway, also of Nashville, attempted to extort Maund about his affair with Williams. At that time Maund was an executive for his family’s automobile dealerships in Austin, Texas.
Maund hired Peled to respond to the extortion attempt. Peled, in turn, hired Brockway and Carey to go to Nashville to investigate Lanway and Williams. Peled testified at trial that when Lanway’s efforts to extort Maund persisted, Maund agreed to pay Brockway and Carey $100,000 each to murder Lanway and Williams.
The evidence showed that Maund wired Peled, who acted as the middleman for the scheme, $150,000 on March 12, 2020, the day the murders occurred. On the same day, Brockway and Carey kidnapped Williams and Lanway from outside of Williams’ apartment complex in West Nashville and drove them to a nearby construction site where they were murdered. The victims’ bodies were found on the morning of March 13, 2020 inside Williams’ vehicle. Over the course of the next year, Maund wired Peled an additional $900,000 as payment for the scheme and Peled withdrew cash to pay Brockway and Carey for their roles.
“We are committed to aggressively prosecuting violent crime in Middle Tennessee and I am very pleased that the men responsible for these murders have finally been held accountable for their deplorable actions,” said United States Attorney Henry C. Leventis. “I want to commend the detectives of the Metro Nashville Police Department and agents of the Federal Bureau of Investigation whose thorough investigation made this outcome possible.”
“Those who devalue life need to know that when you break the law, you will be brought to justice,” said Special Agent in Charge Douglas DePodesta of the FBI Memphis Field Office. “This conviction should send a clear message that the FBI and our law enforcement partners are dedicated to keeping our citizens safe, and nothing will stop us from accomplishing that mission. We will continue to combine our resources and share our expertise to target those who hope to commit similar heinous acts.”
“This investigation began with the discovery of two murder victims, Holly Williams and William Lanway, inside a vehicle off a construction road in West Nashville on Good Friday 2020,” Metro Nashville Police Chief John Drake said. “Months of outstanding investigative work, led by Detectives Patrick Cuthbertson and David Willover, provided multiple leads that drew our attention to other states. Realizing that this elaborate criminal case reached far outside of Nashville, our team enlisted the help of the FBI and the U.S. Attorney’s Office. It is that partnership that brought justice for the victims in federal court last week, and a partnership that will continue to hold violent criminals accountable in the future.”
Maund, Brockway, and Carey all face a mandatory life sentence in federal prison. They will be set for separate sentencing hearings sometime in 2024. Peled will also be sentenced in 2024 where U.S. District Judge William L. Campbell, Jr. will take his cooperation into consideration as part of his ultimate sentence.
This case was investigated by the FBI and the Metro Nashville Police Department. Assistant U.S. Attorneys Robert McGuire and Brooke Farzad prosecuted the case.
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Nashville Man Indicted for Bank RobberyRead the Press Release
NASHVILLE – A federal grand jury returned an indictment this week charging Tyrone Meriweather, 48, of Nashville, Tennessee, with one count of bank robbery, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
According to the criminal complaint and indictment, on October 19, 2023, Meriweather entered a U.S. Bank on Harding Pike in Nashville, Tennessee, and demanded money while brandishing a knife. The bank teller gave Meriweather the money from his drawer, and Meriweather fled on foot.
If convicted, Meriweather faces up to 25 years in federal prison.
This case was investigated by the FBI and the Metro Nashville Police Department. Assistant U.S. Attorney Mitchell Galloway is prosecuting the case.
An indictment is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Vanderbilt Student Charged with CyberstalkingRead the Press Release
NASHVILLE – A federal grand jury returned an indictment this week charging Dominic Lambert, 24, of Plano, Texas, with Cyberstalking, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
According to documents filed in court, in February 2021, Lambert met a young woman, identified by her initials M.H.P., when the two were both undergraduate students at Vanderbilt University. The two became friends, but when M.H.P. declined Lambert’s romantic interest he became obsessed with her. From December 2021 to December 2022, Lambert repeatedly sent text messages, e-mail messages, social media messages, and made phone calls, to M.H.P. and her family and friends.
Also according to court documents, in October 2022, an order of protection was issued in state court, which Lambert violated three separate times, once by sending M.H.P. over 70 consecutive emails and another for calling M.H.P 55 times from the Davidson County Jail.
If convicted, Lambert faces a maximum penalty of 5 years in prison.
This case was investigated by the FBI. Assistant U.S. Attorney Brooke K. Schiferle is prosecuting the case.
An indictment is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Three Charged in $1.5 Million Conspiracy to Fraudulently Claim Tax RefundsRead the Press Release
NASHVILLE – A federal grand jury returned an indictment last month charging Darwing Dubon-Castro, 32, and Josselyn Zamora-Carranza, 28, of Murfreesboro, Tennessee, and Carlos Rodriguez, 22, of Antioch, Tennessee, with conspiracy to commit fraud and to defraud the United States and passing forged United States Treasury checks. Dubon was also charged with wire and mail fraud and aggravated identity theft related to the filing of fraudulent federal income tax returns, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
Defendants Zamora-Carranza and Rodriguez were arrested on October 26 and made appearances before a U.S. Magistrate Judge. Defendant Dubon-Castro was arrested and made his initial appearance yesterday.
According to the indictment, from February 2019 to October 2023, the defendants conspired to fraudulently obtain tax refunds from the IRS by filing tax returns using others’ stolen identities and false wage information. The indictment alleges that Dubon filed these tax returns with the IRS and directed the IRS to send the refunds to himself and his co-defendants. As a result of their scheme, the defendants defrauded the IRS of more than $1.5 million.
After receiving the tax refund checks, Dubon, Zamora, and Rodriguez used forged identification documents so that they could cash the tax refund checks. During the execution of search warrants, federal agents found over 100 such false identifications.
If convicted, Dubon faces a maximum penalty of 20 years in prison for the fraud charges and a mandatory 2 years in prison for the aggravated identity theft, and Zamora and Rodriguez each face a maximum penalty of 10 years in prison. All defendants also face a $250,000 fine on each count.
This case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Mitchell T. Galloway is prosecuting the case.
An indictment is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Tennessee Supervisory Corrections Officer Sentenced for Civil Rights Offenses After Assaulting an Inmate and Ignoring His Medical NeedsRead the Press Release
Former supervisory state corrections officer, Kenan Lister, was sentenced today to two years in prison followed by two years of supervised release after he pleaded guilty to two civil rights offenses.
In April 2022, Lister pleaded guilty to one count of deprivation of rights under color of law for using unlawful force on an inmate and one count of being deliberately indifferent to the same inmate’s medical needs.
“Correctional officers who abuse the people in their custody not only violate the Constitution, but also erode public trust in the criminal justice system,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “While on duty as a supervisory officer, the defendant brutally assaulted a man in a state corrections facility and then deliberately ignored his obvious medical needs resulting from the assault. The Justice Department is committed to prosecuting officials inside our jails and prisons who abuse their power and exploit their position in full disregard of the constitutional rights which we all possess.”
“The defendant, who was entrusted with the care of inmates, abused his authority as a corrections officer by violently assaulting an inmate,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “This sentence sends a clear message that our office will investigate and hold accountable anyone who violates the constitutional rights of others.”
“When correctional officers abuse their authority and harm inmates, it not only violates our civil rights laws, it undermines the criminal justice system as a whole,” said Special Agent in Charge Douglas DePodesta of the FBI Memphis Field Office. “The FBI makes it a priority to bring to justice any law enforcement officer who violates the civil rights of those they are sworn to protect.”
The facts established in connection with the defendant’s guilty plea revealed that, on Aug. 30, 2019, Lister assaulted an inmate in a holding cell at the Trousdale Turner Correctional Facility in Hartsville, Tennessee. At the time, Lister was on duty as the facility’s security threat group coordinator. While the inmate was sitting calmly in a holding cell, Lister punched the inmate in the head, knocking him to the ground. Lister then kicked, punched and struck the inmate multiple times in his head, chest and torso after he was on the ground and not resisting. The assault fractured the inmate’s ribs and punctured his lung. After the assault, Lister knew that the inmate had serious medical needs. Despite this knowledge, Lister failed to provide medical care to the inmate or obtain medical care from others. Instead, Lister left the inmate locked in a holding cell and filed a report that omitted any mention of his assault.
The FBI Memphis Field Office investigated this case.
Assistant U.S. Attorney Amanda J. Klopf for the Middle District of Tennessee and Trial Attorney Michael J. Songer of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Tennessee Supervisory Corrections Officer Sentenced for Civil Rights Offenses After Assaulting an Inmate and Ignoring His Medical NeedsRead the Press Release
NASHVILLE – Former supervisory state corrections officer, Kenan Lister, was sentenced to two years in prison followed by two years of supervised release today after he pleaded guilty to two civil rights offenses, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee
In April 2022, Lister pleaded guilty to one count of deprivation of rights under color of law for using unlawful force on an inmate and one count of being deliberately indifferent to the same inmate’s medical needs.
“The defendant, who was entrusted with the care of inmates, abused his authority as a corrections officer by violently assaulting an inmate. This sentence sends a clear message that our office will investigate and hold accountable anyone who violates the constitutional rights of others,” said United States Attorney Henry C. Leventis.
“Correctional officers who abuse the people in their custody not only violate the Constitution, but also erode public trust in the criminal justice system,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “While on duty as a supervisory officer, the defendant brutally assaulted a man in a state corrections facility and then deliberately ignored his obvious medical needs resulting from the assault. The Justice Department is committed to prosecuting officials inside our jails and prisons who abuse their power and exploit their position in full disregard of the constitutional rights which we all possess.”
“When correctional officers abuse their authority and harm inmates, it not only violates our civil rights laws, it undermines the criminal justice system as a whole,” said Special Agent in Charge Douglas DePodesta of the FBI Memphis Field Office. “The FBI makes it a priority to bring to justice any law enforcement officer who violates the civil rights of those they are sworn to protect.”
The facts established in connection with the defendant’s guilty plea revealed that, on August 30, 2019, Lister assaulted an inmate in a holding cell at the Trousdale Turner Correctional Facility in Hartsville, Tennessee. At the time, Lister was on duty as the facility’s security threat group coordinator. While the inmate was sitting calmly in a holding cell, Lister punched the inmate in the head, knocking him to the ground. Lister then kicked, punched and struck the inmate multiple times in his head, chest and torso after he was on the ground and not resisting. The assault fractured the inmate’s ribs and punctured his lung. After the assault, Lister knew that the inmate had serious medical needs. Despite this knowledge, Lister failed to provide medical care to the inmate or obtain medical care from others. Instead, Lister left the inmate locked in a holding cell and filed a report that omitted any mention of his assault.
The FBI Memphis Field Office investigated this case.
Assistant U.S. Attorney Amanda J. Klopf for the Middle District of Tennessee and Trial Attorney Michael J. Songer of the Justice Department’s Civil Rights Division prosecuted the case.
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Clarksville Home Business Owner Sent to Prison for Filing False Tax ReturnsRead the Press Release
NASHVILLE – David Haley, 65, of Clarksville, Tennessee was sentenced yesterday to two years in federal prison for filing false tax returns that omitted income he earned from his business, announced U.S. Attorney Henry C. Leventis for the Middle District of Tennessee and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. Haley was also ordered to pay a fine of $5,000 and restitution in the amount of $186,290. Upon release from prison, he will be subject to one year of supervised release.
In November 2022, Haley was convicted of three counts of filing false tax returns for tax years 2015, 2016, and 2017. The jury acquitted Haley of one count of filing a false tax return relating to his 2014 tax filing. According to court documents and evidence presented at trial, Haley owned Haley & Associates Mechanical Contractors, a heating and plumbing business. From 2014 through 2017, Haley & Associates was hired as the subcontractor on commercial projects in middle Tennessee and was paid more than $1,000,000 for each year. Generally, the contractors that hired Haley & Associates paid via check and reported the payments to the IRS via Forms 1099-MISC as non-employee compensation. Even though Haley personally received a portion of the company’s earnings as business income and nonemployee compensation, Haley reported earning no income on his 2014-2017 tax returns. Haley’s failure to report that income on his tax returns for tax years 2015 through 2017 caused the IRS a loss of approximately $186,290.
IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorneys Kathryn W. Booth and Mitchell T. Galloway are prosecuting the case.
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Three Individuals Charged in Multi-Million Dollar Scheme to Defraud Automobile AuctionRead the Press Release
NASHVILLE – A federal grand jury returned an indictment last week charging Stephanie Louise Baker, 53, of Mount Juliet, Tenn., Brian Baker, 52, of Mount Juliet, Tenn., and Jerry W. Hutchins, 48, of Dowelltown, Tenn., for engaging in a wire fraud and money laundering scheme to defraud a used automobile auction business in Murfreesboro, Tennessee, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
All three defendants surrendered to federal agents last Friday and made an appearance before a U.S. Magistrate Judge that day.
The federal indictment charges Stephanie Baker and Brian Baker, who are married, and Hutchins with a wire fraud conspiracy and money laundering conspiracy. The indictment also charges all three defendants with substantive offenses for acts of money laundering.
According to the indictment, between February 2017 and November 2018, Stephanie Baker was the General Manager of the Dealers Auto Auction Group’s Murfreesboro auction location. Brian Baker and Jerry Hutchins each owned and operated used car dealerships and did business at the auction. The defendants devised a scheme to defraud Dealers Auto Auction Group, LLC by creating fake transactions to make it appear that the defendants’ businesses had sold cars at the auction and were entitled to receive funds from Dealers Auto Auction Group, when in fact the defendants had not sold vehicles at the auction. Based on the fake transactions, Stephanie Baker caused Dealers Auto Auction Group to issue checks to Brian Baker’s and Hutchins’ businesses. Then, monthly, the defendants would create additional fake transactions using the same vehicles in order to conceal the original fraud and avoid detection. Brian Baker and Hutchins then converted proceeds of the fraud scheme for their own personal use and benefit.
As a result of this scheme, the defendants defrauded Dealers Auto Auction Group of more than $2 million.
If convicted, the defendants face up to 20 years in prison for the wire fraud conspiracy, the money laundering conspiracy, and the concealment money laundering offenses, and up to 10 years in prison for money laundering. The indictment also contains a forfeiture allegation in which the government seeks to forfeit any property derived from the proceeds of the crimes, including a money judgment in the amount of at least $2,041.170 from Stephanie Baker, $1,357,310 from Brian Baker, and $683,830 from Jerry Hutchins.
This case was investigated by the IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Chris Suedekum is prosecuting the case.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
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Affinity Acupuncture Agrees to Pay $250,000 to Resolve False Claims Act AllegationsRead the Press Release
NASHVILLE – United States Attorney Henry C. Leventis for the Middle District of Tennessee announced today that Affinity Acupuncture, LLC (“Affinity”) has agreed to pay the United States $250,000 to resolve allegations that it violated the False Claims Act (“FCA”).
The United States contends that Affinity violated the FCA by submitting false claims to the U.S. Department of Veterans Affairs (“VA”) for non-reimbursable acupuncture for which the claims were not authorized, not allowed as coded, or lacked supporting documentation. The settlement covers conduct for the period from January 2015 through December 2020, during which the VA reimbursed Affinity for claims arising from its false statements.
“The VA audit revealed that millions of dollars were improperly paid to non-VA acupuncture providers around the country for procedures that were not authorized, not allowed as coded, or lacked supporting documentation,” said United States Attorney Henry C. Leventis. “This settlement is in keeping with our commitment to working with the VA and its Office of Inspector General to identify, and, whenever possible, recover improper payments.”
This investigation follows an internal audit by the VA’s Office of Inspector General and its published report issued in December 2021 that found that the VA made an estimated $137 million in improper payments for acupuncture nationwide during Fiscal Years 2018 and 2019.
“VA’s Community Care programs provide veterans and their families the ability to obtain critical healthcare services locally,” said Special Agent in Charge Kim R. Lampkins of the Department of Veterans Affairs Office of Inspector General’s Mid-Atlantic Field Office. “Today’s civil settlement demonstrates the VA OIG’s ongoing efforts to protect the integrity of VA’s programs and services.”
The civil claims resolved by this settlement are allegations. There has been no determination or admission of liability in this matter.
This case was investigated by the VA-Office of Inspector General. Assistant U.S. Attorney Mike Tackeff represented the United States.
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Twenty-One Charged with Firearms, Illegal Drugs, and Conspiracy Offenses Following Multi-Agency Violent Crime Reduction Effort in Memphis, TennesseeRead the Press Release
Federal and local law-enforcement officials announced today that 21 individuals were charged in connection with firearms-trafficking, drug-distribution, conspiracy, and other offenses as part of a targeted violent crime reduction initiative in Memphis, Tennessee. The indictments are the result of a series of coordinated arrests made following a months-long multi-agency operation.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Memphis Police Department (MPD) initiated this investigation after analyzing crime and gun recovery statistics. By examining more than 5,000 data points collected from the National Integrated Ballistic Information Network (NIBIN), MPD’s Real Time Crime Center, and 911 calls referencing shots fired, analysts were able to identify areas of Memphis with the highest density of firearm-related crime. Based on that analysis and other information, ATF opened an investigation into illegal activity at several locations around Memphis and Shelby County.
“The dozens of charges and arrests announced today represent what federal, state, and local law enforcement can accomplish when we work hand-in-hand to take violent criminals and trigger-pullers off our streets,” said Deputy Attorney General Lisa O. Monaco. “When we harness the Justice Department’s resources and technology — especially crime-gun intelligence from ATF’s NIBIN network — we are able to identify and arrest the culprits of gun violence and safeguard our communities. Across the country, our towns and cities are safer because of the dedication and bravery of federal agents and their state and local partners, and the 21st-century crime-solving tools DOJ is able to provide.”
“For months, ATF agents and our local, state, and federal law enforcement partners have been investigating violent criminals who have terrorized Memphis,” said Director Steve Dettelbach of the ATF. “The results are now clear: more than 20 arrests; nearly 100 seized firearms, including guns outfitted with machine gun conversion devices; and large quantities of narcotics – including fentanyl. All done better than ever using crime gun intelligence to catch the worst of the worst. ATF commits to continue using and sharing its intelligence with partners around the country to further drive down violent crime.”
“We have a serious gun violence problem in Memphis and strong law enforcement partnership is one of our most effective tools for addressing it,” said U.S. Attorney Kevin Ritz for the Western District of Tennessee. “This was an extensive, well-coordinated, and sustained effort to identify and take down some of our community’s most dangerous repeat offenders, serial shooters, and firearms trafficking rings so that we protect citizens and ensure our city’s safety. I want to thank our law enforcement partners for their hard work and reiterate this office’s commitment to working with them to make our streets safer.”
“ATF is committed to reducing the impact of firearm related violent crime in our communities,” said Special Agent in Charge Marcus Watson of ATF Nashville. “Using technology helps us to identify the high crime areas and those who criminally possess firearms. We employ every technique available to law enforcement to dismantle criminal organizations and disrupt the illegal use of firearms for criminal activity. Working with our law enforcement partners, this enforcement initiative did just that.”
Special Agent in Charge Marcus Watson of the ATF Nashville Division, U.S. Marshal Tyreece Miller, Chief Cerelyn “CJ” Davis of the Memphis Police Department, Assistant Special Agent in Charge Clint Cannon of Homeland Security Investigations (HSI), and Chief Deputy Anthony Buckner of the Shelby County Sheriff’s Office provided additional details relating to the initiative, as well as on larger firearms enforcement and violence-prevention efforts.
Additionally, District Attorney General Steve Mulroy announced that his office obtained a court order under Tennessee law to shut down the Save a Stop 2 store as a nuisance and danger to the community. The order was based on the excessive illegal firearm and drug crimes being committed on and around the property.
“This is an excellent example of effective partnerships among agencies,” said Shelby County District Attorney Steven J. Mulroy. “Thanks to the great work of the ATF and our local law enforcement, we were able to file a nuisance action to shut down a breeding ground of crime in the community which had long degraded neighborhood residents' safety and quality of life. Because of that and the work by the U.S. Attorney’s Office, residents can now look forward to a safer community.”
Between 2022 and 2023, law enforcement officials investigated illegal firearm and drug crimes happening in Memphis and Shelby County. Information from 911 calls involving the Save a Stop 2 property showed repeated reports of armed persons, drug overdoses, shots fired, both aggravated and simple assaults, auto thefts, fights, drug sales, and other disturbances. Many of these activities took place in the store’s public parking lot during business hours while nearby uninvolved, law-abiding citizens were engaged in their shopping or day-to-day errands.
The joint investigation has led to nine indictments or complaints and 21 defendants facing federal charges. Federal agents purchased or seized 91 firearms, six of which were outfitted with machine gun conversion devices or “switches” designed to convert a firearm to a fully automatic weapon. Additionally, law enforcement purchased or seized almost two kilograms of methamphetamine, 332 grams of powder cocaine, 210 grams of powder fentanyl, almost 65 grams of crack cocaine, 2,826 fentanyl pills, and 767 MDMA/Meth pills.
Some defendants were charged together, but several others were charged individually. The following charges have been filed in United States District Court, according to court documents:
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Marvis Harris, 49, Christopher Butts, 41, and Antoinette Ozier, 41, were indicted together on drug distribution charges. In the same indictment:
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Harris and Butts were charged with conspiracy to distribute drugs as well as distribution of drugs.
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Butts and Ozier were charged with unlawfully possessing firearms following felony convictions and for possessing firearms in furtherance of a drug trafficking crime.
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Harris was also charged with unlawfully possessing firearms following felony convictions, illegal possession of machine guns, and with possessing a firearm in furtherance of a drug trafficking crime.
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Ozier was charged with using a premises for the purpose of manufacturing or distributing drugs.
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Ernell Paige, 45, was charged in an indictment with possessing drugs with intent to distribute and with distribution of drugs.
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Ulandus Mayes, 34, and Christopher Watts, 39, were indicted together for engaging in the business of dealing firearms without a federal firearms license and for unlawfully possessing firearms following felony convictions. Mayes was additionally charged with distribution of drugs and possessing firearms in furtherance of a drug trafficking crime.
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Enrique Cardenas-Otra, 41, was charged with unlawfully possessing firearms following felony convictions and for engaging in the business of dealing firearms without a federal firearms license.
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Xavier Ashford, 30, and Marquez Glover, 21, were both charged with distribution of drugs.
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Leedell Otis, 46, Ricky Brooks, 41, and Jeremiah Otis, 34 were indicted together. In the same indictment:
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Leedell Otis and Ricky Brooks were also charged with unlawfully possessing firearms following felony convictions.
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In addition, Leedell Otis and Jeremiah Otis were charged with distribution of narcotics, and use and carry of a firearm during and in relation to a drug trafficking crime.
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Justin Bankhead, 33, was charged with possession of a firearm in furtherance of a drug trafficking crime.
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Jamar Anderson, 27, Tijerol Crawford, 33, Raymond Greenwood, 39, Broderick Harper, 26, Benjamin Jones, 28, Octavius McMullen, 32, and Larry Raiford, 58 were indicted together. In the same indictment:
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Anderson, Jones, Crawford, Greenwood, and McMullen were also charged with unlawfully possessing firearms following felony convictions.
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Anderson, Jones, Raiford, and Crawford were charged with distribution of narcotics.
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Harper and Jones were charged with possession of a machinegun conversion device.
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Crawford was charged with carrying and using a firearm during and in relation to a drug trafficking crime.
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Adrian Seymour, 37, was indicted for unlawfully possessing firearms following felony convictions, distribution of narcotics, and use and carry of a firearm during and in relation to a drug trafficking crime.
ATF led the investigation preceding the indictments with assistance from MPD, the U.S. Marshals Service, Drug Enforcement Administration, HSI, and Shelby County Sheriff’s Office.
Assistant U.S. Attorneys Marques Young and Michelle Parks for the Western District of Tennessee are leading the team that is prosecuting the cases.
These indictments are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, using data-driven methods to set focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Cookeville Man Indicted for Robbing Two Banks in BrentwoodRead the Press Release
NASHVILLE – Antonio Peebles, 30, of Cookeville, Tennessee, was indicted by a federal grand jury and charged with two counts of bank robbery, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
According to the indictment and prior media reports, on May 24, 2023, Peebles entered the Pinnacle Bank on Franklin Road in Brentwood, Tennessee, placed a bag on the bank counter and demanded money. The bank tellers gave Peebles money from their drawers and Peebles then fled on foot.
Peebles later robbed the Wilson Bank & Trust on Harpeth Drive in Brentwood, Tennessee, on June 12, 2023, in a similar manner. Peebles was arrested the same day by officers with the Brentwood Police Department.
If convicted, Peebles faces up to 20 years in federal prison on each count.
This case was investigated by the FBI and the Brentwood Police Department. Assistant U.S. Attorney Juliet Aldridge is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Nashville Man Sentenced to Twelve Years in Federal Prison for His Role in a Multiple Drug ConspiracyRead the Press Release
NASHVILLE – Defendant Anthony Bryant, 38, of Nashville, was sentenced yesterday to 12 years in federal prison, followed by five years of supervised release, for his role in a poly-drug distribution conspiracy that took place in 2020, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee. Co-defendant Carlos Wall, 48, of Franklin, Tennessee, previously was sentenced to twenty years’ imprisonment, and co-defendant Arthur Kinnard, 38, of Franklin, Tennessee, previously was sentenced to 83 months in federal prison. Co-defendant Samantha Brady, 27, of Nashville, Tennessee, has entered a guilty plea, and is scheduled to be sentenced on October 23, 2023.
Bryant and his co-defendants were charged with multiple crimes by information in 2021. On October 5, 2022, Bryant pled guilty to Conspiracy to Distribute and Possess With Intent to Distribute a kilogram or more of heroin; 400 grams or more of fentanyl; 50 grams or more of methamphetamine; a quantity of cocaine; and a quantity of cocaine base; multiple counts of Distribution and Possession with Intent to Distribute multiple kinds of drugs; possession of a firearm in furtherance of drug trafficking; and possession of a firearm by a prohibited person.
The charges stem from a wiretap investigation into Wall and his co-defendants, in which they were intercepted discussing the distribution of multiple kinds of drugs, including fentanyl. At the sentencing for Bryant yesterday, when discussing the danger of fentanyl, United States District Judge Eli Richardson said, “fentanyl has [left] corpses all over this city.”
"Drug trafficking, and specifically fentanyl trafficking, is having a devastating impact on communities throughout Middle Tennessee. Too many people have lost loved ones to this poison. This prosecution and the lengthy prison sentences handed down in this case reaffirm our commitment to fighting back and to holding drug traffickers accountable," said United States Attorney Henry C. Leventis.
This investigation was conducted by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Metropolitan Nashville Police Department.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorney Amanda J. Klopf for the Middle District of Tennessee prosecuted the case.
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Nashville Man Faces 30 Years in Federal Prison in Connection with June 2019 HomicideRead the Press Release
NASHVILLE – Justin Pace, 28, of Nashville, pled guilty in federal court today in connection with a June 2019 homicide at the Super 8 Motel in Hermitage, Tennessee, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
Pace and several co-defendants were charged by a federal grand jury in August 2021 with conspiracy to commit robbery, robbery, and causing death through the use of a firearm. Two other defendants have already pleaded guilty in connection with these offenses.
The charges in this case relate to the robbery of Anthony Goodall, a local drug dealer. Goodall arrived at the Super 8 Motel in the early morning hours of June 30, 2019. Pace and Donte Easley, who is now deceased, followed Goodall and robbed him after Goodall got out of an elevator in the breezeway of the motel. During the robbery, Goodall was shot and killed. Pace took Goodall’s backpack, which contained methamphetamine, and fled the scene with Easley. Surveillance footage from the motel permitted investigators to identify the assailants, who were charged in state and federal courts.
Pace pled guilty to all of the charges against him. The terms of his plea agreement with the United States call for him to be sentenced to a term of 30 years’ imprisonment.
“Today’s guilty plea ensures that this defendant will be removed from society for the next thirty years,” said United States Attorney Henry C. Leventis. “We will continue to work alongside our law enforcement partners to focus federal resources on the most violent criminals in Middle Tennessee.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Metropolitan Nashville Police Department. Assistant United States Attorneys Ben Schrader and Rachel Stephens are prosecuting the case.
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United States Reaches $37 Million Settlement of Fraud Lawsuit Against Cigna for Submitting False and Invalid Diagnosis Codes to Artificially Inflate Its Medicare Advantage PaymentsRead the Press Release
NASHVILLE – Henry C. Leventis, the United States Attorney for the Middle District of Tennessee, Damian Williams, the United States Attorney for the Southern District of New York, and Naomi Gruchacz, the Special Agent in Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced today that the United States has settled a civil healthcare fraud lawsuit against THE CIGNA GROUP and its subsidiary Medicare Advantage Organizations (collectively, “CIGNA”). The $37 million settlement resolves claims that CIGNA submitted to the Government false and invalid patient diagnosis codes to artificially inflate the payments CIGNA received for providing insurance coverage to its Medicare Advantage plan members. The lawsuit was originally filed by a whistleblower in the U.S. District Court for the Southern District of New York and later transferred to the Middle District of Tennessee.
The Government’s Complaint alleged that the invalid diagnosis codes were based solely on forms completed by vendors retained and paid by CIGNA to conduct in-home assessments of plan members. The healthcare providers (typically nurse practitioners) who conducted these home visits did not perform or order the diagnostic testing or imaging that would have been necessary to reliably diagnose the serious, complex conditions reported and were in many cases prohibited by CIGNA from providing any treatment during the home visits for the medical conditions they purportedly found. The diagnoses at issue were not supported by the information documented on the forms completed by the vendors and were not reported to CIGNA by any other healthcare provider who saw the patient during the year in which the home visits occurred. Nevertheless, CIGNA submitted these diagnoses to the Government to claim increased payments, and falsely certified each year that the diagnosis data it submitted was “accurate, complete, and truthful.”
As part of the settlement approved yesterday by U.S. District Judge Eli Richardson CIGNA will pay the United States a total of $37 million. CIGNA also made extensive factual admissions in the settlement regarding the conduct alleged in the Government’s Complaint. In connection with this settlement, CIGNA entered into a five-year Corporate Integrity Agreement (“CIA”) with HHS-OIG. The CIA requires CIGNA to implement numerous accountability and auditing measures. In particular, CIGNA must conduct annual risk assessments and other monitoring, and an independent review organization will conduct multi-faceted audits focused on risk adjustment data. In separate settlements announced today by the Civil Division of the Department of Justice and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, CIGNA is also agreeing to resolve separate allegations that CIGNA submitted invalid beneficiary diagnoses to inflate Medicare Advantage payments.
“Medicare Advantage relies on the integrity of its insurers and the accuracy of the diagnosis code information they provide, since it has an outsize effect on Medicare payments,” said Henry C. Leventis, United States Attorney for the Middle District of Tennessee. “We will continue to vigorously pursue fraud in this increasingly important program.”
U.S. Attorney Damian Williams for the Southern District of New York said: “For years, Cigna submitted to the Government false and invalid diagnosis information for its Medicare Advantage plan members. The reported diagnoses of serious and complex conditions were based solely on cursory in-home assessments by providers who did not perform necessary diagnostic testing and imaging. Cigna knew that these diagnoses would increase its Medicare Advantage payments by making its plan members appear sicker. This Office is committed to holding insurers accountable if they seek to manipulate the Medicare Advantage Program and boost their profits by submitting false information to the Government.”
“Managed care plans’ primary responsibility is to ensure the health coordination and appropriate benefits for the beneficiaries they have enrolled, not focus on profits,” stated Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General. “HHS-OIG will work with our partners at the U.S. Attorney’s Office to ensure the integrity of federal healthcare program funds and the provision of appropriate, quality services to patients.”
Medicare Advantage, also known as the Medicare Part C program, provides health insurance coverage for tens of millions of Americans who opt out of traditional Medicare. Under Medicare Part C, Medicare Advantage Organizations (“MAOs”), typically operated by private insurers like CIGNA, provide coverage for Medicare Advantage plan members. In return, MAOs receive monthly payments from the Centers for Medicare and Medicaid Services (“CMS”) that vary based on each member’s demographic information and medical diagnoses. MAOs submit diagnoses for their plan members, usually provided by the plan members’ healthcare providers, to CMS. CMS then uses those diagnoses, along with demographic factors, to calculate a “risk score” for each member and, in turn, the amount of the monthly payment it will pay the MAO for covering that member. The Medicare Advantage payment model is intended to pay MAOs more to cover healthcare expenses for sicker plan members (who are expected to incur higher healthcare costs) and less for healthier plan members (who are expected to incur lower costs).
As alleged in the Government’s Complaint:
CIGNA, through its subsidiaries and affiliates, owns and operates numerous MAOs that administer Medicare Advantage Plans. CIGNA contracted with several vendors to conduct home visits of Medicare Advantage plan members across the country as part of its broader so-called “360 comprehensive assessment” program. The home visits were typically conducted by nurse practitioners and, on occasion, by other non-physician healthcare providers such as registered nurses and physician assistants (the “Vendor HCPs”). Based on the visit, the Vendor HCPs completed a CIGNA-created form (“360 form”) that included a check-the-box multi-page list of a wide range of medical conditions. CIGNA had its coding teams identify diagnosis codes that corresponded to the recorded medical conditions and then submitted those to CMS for risk adjustment payment purposes.
CIGNA structured the 360 home visits for the primary purpose of capturing and recording lucrative diagnosis codes that would significantly increase the monthly capitated payments it received from CMS. The purpose of the visits was not to treat patients’ medical conditions, and CIGNA explicitly prohibited the Vendor HCPs from providing actual patient treatment or care. As CIGNA acknowledged in an internal document discussing the program, “[t]the primary goal of a 360 visit is administrative code capture and not chronic care or acute care management.” But this was not disclosed to CIGNA’s plan members when the home visit was scheduled or during the actual visit. When identifying plan members to receive home visits, CIGNA targeted individuals who were likely to yield the greatest risk score increases and thus the greatest increased payment.
The Vendor HCPs spent limited time with the patients and did not conduct a comprehensive physical examination. When completing the assessments and recording the diagnoses, the Vendor HCPs relied largely on the patient’s own self-assessment and their responses to various basic screening questions. Vendor HCPs did not have access to the patient’s full medical history and typically did not obtain or review relevant records from the patient’s primary care physician in advance of the visit.
CIGNA’s 360 home visit program regularly generated false and invalid diagnosis codes for certain serious, complex conditions that cannot be reliably diagnosed in a home setting and without extensive diagnostic testing or imaging. In tens of thousands of instances, CIGNA submitted diagnosis codes that represent serious, complex medical conditions that (i) were based only on the home visits conducted by the Vendor HCPs; (ii) require specific testing or imaging to be reliably diagnosed, which was not performed; (iii) were not supported by the information documented on the 360 form completed by the Vendor HCPs; and (iv) were not reported by any other healthcare provider who saw the plan member during the year in which the home visit occurred (the "Invalid Diagnoses"). The Invalid Diagnoses included, but are not limited to, diagnoses for complex medical conditions such as chronic kidney disease, congestive heart failure, rheumatoid arthritis, and diabetes with renal complications. According to CIGNA’s own clinical guidelines, accurately diagnosing these conditions requires specialized testing.
CIGNA exerted pressure on Vendor HCPs to record high-value diagnoses that significantly increased risk adjustment payments. CIGNA management identified at least 12 classes of generic chronic diagnoses that they thought were “often underdiagnosed” among its Plan members and, through trainings and seminars, encouraged the Vendor HCPs to make these diagnoses during the home visits. CIGNA also closely tracked the volume and nature of the diagnoses generated by each vendor’s home visits, as well as how the diagnoses affected risk-adjusted payments. CIGNA provided trainings to vendors to improve their “performance” when they failed to deliver the expected level of high-value diagnosis codes.
Indeed, CIGNA tracked the return on investment of the 360 home visit program by comparing the costs of the in-home visits (i.e., payments to vendors) against the additional Part C payments generated by increased risk scores. For example, according to an internal report, CIGNA determined that, during the first nine months of 2014, one vendor’s 6,658 in-home visits resulted in more than an additional $14 million in Medicare payments, which dwarfed the approximately $2.13 million that CIGNA paid to the vendor. When specific providers were found to have captured fewer diagnoses than expected, CIGNA asked the vendor to prepare a “performance improvement plan” for the provider.
The Invalid Diagnoses generated by the 360 home visits also did not conform with the International Classification of Diseases (“ICD”) Office Guidelines for Coding and Reporting (the “ICD Guidelines”), as required by applicable federal regulations. The Invalid Diagnoses did not affect patient care, treatment, or management during the home visit, as required under the ICD Guidelines, and thus were ineligible for risk adjustment. In addition, the Invalid Diagnoses were not supported by the minimal information recorded on the 360 forms, in violation of the ICD Guidelines’ medical record documentation requirement. In fact, in some cases, the 360 forms include clinical exam findings that contradict the supposed diagnosis. For example, one patient received a congestive heart failure diagnosis from a home visit even though the 360 form explicitly noted that physical exam results found her heart to be “regular” and “normal,” and stated, “cardiac reviewed and unremarkable.”
As part of the settlement, CIGNA admitted and accepted responsibility for certain conduct alleged by the Government including the following:
- As part of the 360 Program, CIGNA contracted with vendors who employed nurse practitioners or other licensed healthcare providers to conduct assessments of Part C members in their homes. The vendor healthcare providers, among other things, performed physical exams and documented diagnostic information on standardized forms provided or approved by CIGNA but in many cases were not permitted to provide treatment or prescriptions for medications.
- CIGNA’s medical coding team reviewed the completed “360” forms and, based on that review, identified diagnosis codes that corresponded to the medical conditions checked off on the forms, which were then submitted to CMS as part of CIGNA’s risk adjustment data. The forms utilized by CIGNA’s vendors listed a wide range of diagnoses, including complex medical conditions.
- CIGNA tracked the volume and nature of the diagnoses generated by vendors’ home visits. CIGNA also tracked how the diagnoses affected risk-adjusted payments.
- According to diagnostic criteria disseminated by CIGNA to the vendors, the clinical assessment of some of these diagnoses relies on laboratory evaluation, diagnostic imaging, or other diagnostic testing when making a particular diagnosis for the first time. In many cases, CIGNA did not require 360 Program vendors conducting in-home assessments to have the equipment available to conduct such laboratory testing, imaging, or other diagnostic testing when diagnosing these conditions.
- In thousands of instances, the in-home assessments conducted by 360 Program vendors resulted in diagnoses of CIGNA members and the submission to CMS of resulting risk-adjusting diagnosis codes that had not been previously reported to CMS by CIGNA from any other encounter with a healthcare provider during the year in which the home visit occurred.
- Based on the in-home assessments of members completed by vendors pursuant to the 360 Program, in many instances, CIGNA reported to CMS diagnoses for Medicare Advantage Plan members where the 360 forms did not include clinical information that corroborated the diagnoses and did not reflect that the diagnostic testing necessary to make the diagnosis for the first time had been performed.
This case is being handled by Assistant U.S. Attorney Ellen Bowden McIntyre of the Middle District of Tennessee and Assistant U.S. Attorneys Jeffrey Powell, Peter Aronoff, Jean-David Barnea, and Samuel Dolinger of the Civil Frauds Unit within the U.S. Attorney’s Office for the Southern District of New York.
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Nashville Man Convicted of Multiple Armed Robbery and Firearms CrimesRead the Press Release
NASHVILLE - A federal jury convicted Terrell Stevenson, 34, of Nashville of multiple armed robbery and firearms offenses yesterday, announced United States Attorney for the Middle District of Tennessee, Henry C. Leventis.
Within 40 minutes on Halloween night 2018, Stevenson robbed a Dollar General Store and a Mapco gas station in Nashville, brandishing a semi-automatic pistol and pointing it at the head of the clerk working at the Dollar General Store. Stevenson and his accomplice were arrested by police officers after fleeing from a traffic stop. Stevenson was charged by a federal grand jury in January of 2020 with two counts of Hobbs Act Robbery, two counts of brandishing a firearm during and in relation to a crime of violence, and one count of possession of a firearm by a convicted felon.
Stevenson faces a mandatory minimum sentence of 14 years, and up to life, in federal prison. He will be sentenced by United States District Judge Aleta A. Trauger on January 29, 2024.
This case was investigated by the Federal Bureau of Investigation and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Rachel Stephens and Kathryn Risinger are prosecuting the case.
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Wilson County Man Sentenced to 30 Years in Federal Prison on Child Exploitation ChargesRead the Press Release
NASHVILLE –Edward Alan Kuiper, 39, of Watertown, Tennessee, was sentenced today to 30 years in federal prison for the attempted production, production, and possession of child pornography, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee. That term of imprisonment will be followed by a lifetime of supervised release.
In 2020, the defendant repeatedly victimized two girls under the age of 12. He placed a hidden camera in a bathroom and took videos of both girls using the bathroom. He also took sexually explicit videos of the girls. The defendant kept those videos on his phone, along with over 8,000 images and 1,500 other videos that constituted child pornography.
A federal grand jury indicted the defendant in 2021 on two counts of attempted production of child pornography, four counts of production of child pornography, and one count of possession of child pornography. On November 28, 2022, he pled guilty to all seven counts in the indictment.
“Today’s sentence ensures that the defendant will not pose a risk to children for at least the next three decades,” said United States Attorney Henry C. Leventis. “We are grateful for the excellent work done in this case by our partners at the U.S. Department of Homeland Security and the Wilson County Sheriff’s Office.”
“The sentencing of this predator validates HSI’s commitment to investigate and prosecute those who sexually exploit the innocence of our children,” said HSI Nashville Special Agent in Charge Rana Saoud. “We must remain vigilant as digital technology makes it easier for criminals to engage in this type of deviant behavior. We will continue to work tirelessly with our law enforcement partners to target those who prey upon the vulnerability of our children.”
The U.S. Department of Homeland Security, Homeland Security Investigations and the Wilson County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Robert S. Levine prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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West Virginia Man Sentenced to More Than 22 Years in Federal Prison on Child Exploitation ChargesRead the Press Release
NASHVILLE –Shaun J. Sanders, 45, of Morgantown, West Virginia, was sentenced yesterday to 22 1/2 years in federal prison for the attempted sexual exploitation of a minor, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee. That term of imprisonment will be followed by a lifetime term of supervised release.
In July 2022, the defendant, who was a registered sex offender, communicated with an FBI online covert employee, who was posing as a thirteen-year-old female, on an online dating platform. The defendant engaged in sexually explicit chats with the online covert employee, sent the online covert employee an explicit photo of himself, and requested nude photos and videos of the person he believed to be a minor female.
A federal grand jury indicted the defendant in 2022 on one count of attempted sexual exploitation of a minor, one count of attempted transfer of obscene material to an individual under the age of sixteen, and the penalty for registered sex offenders. On May 8, 2023, he pled guilty to attempted sexual exploitation of a minor.
The Federal Bureau of Investigation investigated this case.
Assistant U.S. Attorney Monica R. Morrison prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Man Sentenced for Extorting and Threatening Children into Performing Sex Acts on CameraRead the Press Release
A Tennessee man was sentenced today to 27 years in prison followed by a lifetime of supervised release for extorting and threatening multiple minors into performing sexual acts on camera.
According to court documents, Caleb D. Jordan, 22, of Mount Juliet, met three minors online through a video gaming platform. Jordan told the minors, who were between 11 and 14 years old, that people were coming to “get them” and threatened to kill or sexually assault their parents unless the minors created videos of themselves engaging in sexual activity. Jordan instructed them to perform and record specific sex acts and used these minors to create nearly 400 sexually explicit videos, some of which depict the minor victims crying or in visible distress. Jordan then attempted to sell the videos over an encrypted internet chatting application. Electronic devices seized from Jordan’s home also contained more than 10,000 images and videos of child sexual abuse material.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Henry C. Leventis for the Middle District of Tennessee, and Special Agent in Charge Rana Saoud of Homeland Security Investigations (HSI) Nashville made the announcement.
HSI Nashville investigated the case with valuable assistance provided by HSI offices in Phoenix and Fort Myers, Florida.
Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Carrie Daughtrey for the Middle District of Tennessee prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mt. Juliet Man Sentenced for Extorting and Threatening Children into Performing Sex Acts on CameraRead the Press Release
NASHVILLE – A Mt. Juliet man was sentenced today to 27 years in prison for extorting and threatening multiple minors into performing sexual acts on camera. That term of imprisonment will be followed by a lifetime of supervised release.
According to court documents, Caleb D. Jordan, 22, of Mt. Juliet, met three minors online through a video gaming platform. Jordan told the minors, who were between 11 and 14 years old, that people were coming to “get them” and threatened to kill or sexually assault their parents unless the minors created videos of themselves engaging in sexual activity. Jordan instructed them to perform and record specific sex acts and used these minors to create nearly 400 sexually explicit videos, some of which depict the minor victims crying or in visible distress. Jordan then attempted to sell the videos over an encrypted internet chatting application. Electronic devices seized from Jordan’s home also contained more than 10,000 images and videos of child sexual abuse material.
United States Attorney Henry C. Leventis for the Middle District of Tennessee, Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, and Special Agent in Charge Rana Saoud of Homeland Security Investigations (HSI) Nashville made the announcement.
HSI Nashville investigated the case with valuable assistance provided by HSI offices in Phoenix, Arizona, and Fort Myers, Florida.
Assistant U.S. Attorney Carrie Daughtrey for the Middle District of Tennessee and Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Four Nashville Residents Charged with Unlawful Trafficking of FirearmsRead the Press Release
NASHVILLE – Arnold Marks, 25, Kamal Fakhry, 43, Mykyta Strukov, 30, and Cassetty Carver, 22, all of Nashville, Tennessee, were arrested after being charged with weapons trafficking and a conspiracy to commit weapons trafficking. Marks was also charged with numerous additional crimes related to being a previously convicted felon in possession of a firearm and unlawfully possessing a machine gun, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
The indictment alleges that from April 2023 to August 2023, defendants were unlawfully selling firearms to previously convicted felons, and using a convenience store in Nashville operated by Fakhry as a front for selling firearms illegally.
Over the course of the months-long investigation, law enforcement recovered thirty-four firearms that the defendants were attempting to unlawfully sell to convicted felons and other individuals who were prohibited by state and federal law from possessing firearms. Federal agents also recovered two machine guns that Marks intended to sell to someone that he knew was a previously convicted felon. Marks himself is a previously convicted felon for committing attempted especially aggravated robbery in 2017. Marks was on probation throughout the course of the conspiracy alleged in the indictment.
Last week, federal, state, and local law enforcement officers searched seven locations throughout Nashville and arrested all of the defendants. During these searches, law enforcement recovered 45 additional firearms, including a short-barreled shotgun and short-barreled rifle that were illegally modified, thousands of rounds of ammunition, approximately sixteen pounds of marijuana, and other suspected controlled substances that will undergo laboratory testing.
“Illegal gun trafficking is fueling the violent crime taking place in communities throughout Middle Tennessee,” said United States Attorney Henry C. Leventis. “We will continue to focus our efforts on preventing criminals from gaining access to guns and holding gun traffickers accountable.”
This case is being prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Metro Nashville Police Department, and the Tennessee Highway Patrol. Assistant U.S. Attorney Josh Kurtzman is prosecuting the case.
An indictment is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Multiple Foreign Nationals Charged in Connection with Conti Ransomware and Trickbot Malware ConspiraciesRead the Press Release
NASHVILLE – Three indictments were unsealed yesterday charging multiple Russian cybercrime actors involved in the Conti ransomware and Trickbot malware schemes.
Conti was a ransomware variant used to attack more than 900 victims worldwide, including victims in the Middle District of Tennessee, approximately 47 states, the District of Columbia, Puerto Rico, and approximately 31 foreign countries. According to the FBI, in 2021, Conti ransomware was used to attack more critical infrastructure victims than any other ransomware variant. According to court documents and public reporting, Trickbot, which was taken down in 2022, was a suite of malware tools designed to steal money and facilitate the installation of ransomware. Hospitals, schools, and businesses were among the millions of Trickbot victims who suffered tens of millions of dollars in losses.
“The Justice Department has taken action against individuals we allege developed and deployed a dangerous malware scheme used in cyberattacks on American school districts, local governments, and financial institutions,” said Attorney General Merrick B. Garland. “Separately, we have also taken action against individuals we allege are behind one of the most prolific ransomware variants used in cyberattacks across the United States, including attacks on local police departments and emergency medical services. These actions should serve as a warning to cybercriminals who target America’s critical infrastructure that they cannot hide from the United States Department of Justice.”
A federal grand jury in the Middle District of Tennessee returned an indictment charging Maksim Galochkin, aka Bentley; Maksim Rudenskiy, aka Buza; Mikhail Mikhailovich Tsarev, aka Mango; and Andrey Yuryevich Zhuykov, aka Defender, all Russian nationals, with conspiring to use Conti ransomware to attack businesses, nonprofits, and governments in the United States beginning in 2020 and continuing through June 2022.
A federal grand jury in the Northern District of Ohio also returned an indictment charging Galochkin, Rudenskiy, Tsarev, Zhuykov, Dmitry Putilin, aka Grad and Staff; Sergey Loguntsov, aka Begemot and Zulas; Max Mikhaylov, aka Baget; Valentin Karyagin, aka Globus; and Maksim Khaliullin, aka Maxfax, Maxhax, and Kagas, with conspiring to use the Trickbot malware to steal money and personal and confidential information from unsuspecting victims, including businesses and their financial institutions located in the United States and around the world, beginning in November 2015.
A federal grand jury in the Southern District of California returned an indictment charging Galochkin in connection with the Conti ransomware attack on Scripps Health on May 1, 2021.
Middle District of Tennessee
The Middle District of Tennessee indictment charges that the individuals behind Conti ransomware, including Galochkin, Rudenskiy, Tsarev, and Zhuykov, conspired to use Conti to attack hundreds of victims. Conti’s victims included hospital systems, local governments, and foreign governments. Conti conspirators allegedly extorted funds from victims in the Middle District of Tennessee and encrypted the computer systems of a local sheriff’s department, a local police department, and local emergency medical services, among others. Ransom notes left on Conti victims’ computer systems typically boasted “if you don’t [know Conti] – just ‘google it.’”
“The conspirators who developed and deployed Conti ransomware victimized businesses, governments, and non-profits around the world, including a sheriff’s office and an emergency medical service in Tennessee,” said United States Attorney Henry C. Leventis for the Middle District of Tennessee. “We will continue to use the full power of this office to ensure that hackers can no longer hide behind their computer screens and to hold them accountable.”
Galochkin was a “crypter” for Conti, modifying the ransomware so that it would not be detected by anti-virus programs; Rudenskiy was a developer who supervised other developers; Tsarev was a manager of other Conti conspirators; and Zhuykov was a systems administrator who managed users of Conti infrastructure, organized and paid for infrastructure and tools, and assisted in problem solving infrastructure-related issues.
Galochkin, Rudenskiy, Tsarev, and Zhuykov are each charged with one count of conspiracy to violate the Computer Fraud and Abuse Act and one count wire fraud conspiracy. If convicted, each defendant faces a maximum penalty of 25 years in prison.
Northern District of Ohio
The indictment returned in the Northern District of Ohio charged all nine defendants for their alleged roles in developing, deploying, managing, and profiting from the malware known as Trickbot. Trickbot was a sophisticated, modular, multi-functional suite of malware tools which (a) infected victims’ computers with malware designed to capture victims’ online banking login credentials; (b) obtained and harvested other personal identification information, including credit cards, emails, passwords, dates of birth, social security numbers, and addresses; (c) infected other computers connected to the victim computer; (d) used the captured login credentials to fraudulently gain unauthorized access to victims’ online bank accounts at financial institutions; (e) stole funds from victims’ bank accounts and laundered those funds using U.S. and foreign beneficiary bank accounts provided and controlled by the defendants and co-conspirators; and (f) installed ransomware on victim computers.
“As alleged in the indictment, Trickbot infected millions of computers worldwide, including those used by hospitals, schools and businesses,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Today’s announcement demonstrates that these dangerous cybercriminals are not anonymous, as they once believed. The indictments unsealed today show the resolve of the international community to work together to bring cybercriminals to justice. We will continue to use all resources at our disposal to stop cybercrime.”
Each defendant is charged with one count of conspiracy to violate the Computer Fraud and Abuse Act, one count of wire fraud conspiracy, and one count of conspiracy to launder the proceeds of the scheme. The indictment also included an enhancement for falsely registering domains. If convicted, each defendant faces a maximum penalty of 62 years in prison.
Latvian national Alla Witte pleaded guilty to conspiracy to violate the Computer Fraud and Abuse Act on June 28, and Russian national Vladimir Dunaev is in custody and pending trial in Cleveland.
Southern District of California
As alleged in the Southern District of California indictment, Galochkin caused the transmission of the Conti malware and impaired the medical examination, diagnosis, treatment, and care of one or more individuals.
Galochkin is charged with three counts of computer hacking. If convicted, he faces a maximum penalty of 20 years in prison.
“The indictment alleges a callous disregard for the medical care and the personal information of residents of the Southern District of California,” said Acting U.S. Attorney Andrew R. Haden for the Southern District of California. “This office is committed to protecting victims of cybercrime and holding perpetrators accountable.”
“The defendants charged in these three indictments across three different jurisdictions allegedly used their cyber knowledge and capabilities to victimize people and businesses around the world without regard for the damage they caused,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “These indictments should serve as a reminder that no matter a cybercriminal’s location, we will identify and pursue them by doing everything in our power to ensure they face the consequences of their actions.”
"Today’s announcement shows our ongoing commitment to bringing the most heinous cyber criminals to justice—those who have devoted themselves to inflicting harm on the American public, our hospitals, schools, and businesses,” said FBI Director Christopher Wray. “Cyber criminals know that we will use every lawful tool at our disposal to identify them, tirelessly pursue them, and disrupt their criminal activity. We, alongside our federal and international partners, will continue to impose costs through joint operations no matter where these criminals may attempt to hide.”
“Conti ransomware was used to exploit our financial systems and target hundreds of innocent victims,” said Special Agent in Charge William Mancino of the U.S. Secret Service’s Criminal Investigative Division. “The Secret Service will continue to work with our local, state, and federal law enforcement partners to investigate cybercriminals and bring offenders to justice.”
The FBI San Diego, Memphis, and El Paso Field Offices, with U.S. Secret Service, are leading the investigation into Conti ransomware. The U.S. Attorney’s Office for the Western District of Texas provided significant assistance.
Assistant U.S. Attorney Taylor J. Phillips for the Middle District of Tennessee, Assistant U.S. Attorneys Jonathan Shapiro and Kareem Salem for the Southern District of California, and Trial Attorney Sonia V. Jimenez and Senior Counsel Ryan K.J. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the Conti ransomware cases.
The FBI Cleveland Field Office is leading the investigation into Trickbot malware.
Assistant U.S. Attorneys Daniel Riedl and Duncan Brown for the Northern District of Ohio and Senior Counsel Candina Heath of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the Trickbot malware case.
The Justice Department’s National Security Division provided significant assistance in the Conti ransomware and Trickbot malware investigations.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Physician Convicted in $9.5 Million Health Care Fraud Conspiracy to Accept KickbacksRead the Press Release
NASHVILLE – A federal jury in Nashville has convicted Doctor Benjamin T. Toh, 68, of Chicago, Illinois, for his role in a more than $9.5 million health care fraud conspiracy, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
The defendant was indicted by a federal grand jury in December 2022. He was convicted of conspiracy to violate the federal Anti-Kickback Statute after a two-week trial.
According to the evidence at trial, the defendant, who was enrolled as a Medicare provider and licensed to practice medicine in multiple states, worked with purported telemedicine companies to obtain access to Medicare and Medicaid patients around the country. From March 2019 through September 2019, he and others caused the submission of more than $9.5 million in fraudulent ]claims to Medicare and Medicaid for cancer genetic tests. The defendant ordered thousands of these tests despite never actually meeting the patients in person or via telemedicine and never reviewing test results.
In exchange for providing signed orders for genetic testing, the defendant was paid kickbacks by co-conspirator telemedicine companies. These companies were, in turn, paid by co-conspirator marketing companies that targeted Medicare and Medicaid patients through door-to-door marketing, at senior fairs, at nursing homes, and at other locations, and convinced patients to provide their genetic material via a mouth swab kit.
The marketers then provided the swab kits to a lab in Spring Hill, Tennessee, for laboratory cancer genetic testing and in exchange for kickbacks paid to them by the lab. The lab billed Medicare and Medicaid for the tests.
“The defendant abused the trust Medicare placed in him to enrich himself and his co-conspirators at the expense of Medicare recipients and taxpayers,” said United States Attorney Henry C. Leventis. “The jury’s verdict should serve as a powerful reminder that health care providers who do so will be held accountable.”
Based on the count of conviction, the defendant faces up to 5 years in prison and a $250,000 fine. He will be sentenced on January 9, 2024. The jury was unable to reach a verdict on a second conspiracy charge.
This case is being investigated by the U.S. Department of Health & Human Services-Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorneys Sarah K. Bogni and Robert S. Levine are prosecuting the case.
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Columbia Woman Pleads Guilty to Defrauding North Carolina CompanyRead the Press Release
NASHVILLE – Sonya White, 56, of Columbia, Tennessee pleaded guilty today in U.S. District Court to defrauding a North Carolina clinical laboratory company out of nearly $400,000, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
White admitted that she defrauded the clinical laboratory company, identified in court documents as “Company A,” by creating a fictitious vendor named “Mid TN Diagnostics.” Between March 2017 and June 2019, White caused Mid TN Diagnostics to submit fraudulent invoices for payment to Company A. In total, the fraudulent invoice scheme caused Company A to lose approximately $389,620.
Furthermore, White admitted that, when the grand jury issued a subpoena to Mid TN Diagnostics, she caused the company to provide falsified documents to the grand jury.
White’s sentencing has been set for February 2, 2024. She faces up to 20 years’ imprisonment and a fine of up to $250,000. In addition to any fine, White has agreed to the entry of a forfeiture money judgment against her in the amount of $389,620.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Taylor J. Phillips is prosecuting the case.
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Nashville Man Sentenced for November 2020 Violent Crime SpreeRead the Press Release
NASHVILLE – Defendant Miles Priddy, 24, of Nashville, Tennessee, was sentenced today to nine years in federal prison, followed by three years of supervised release for a string of violent crimes he committed in Nashville in 2020, announced United States Attorney Henry C. Leventis.
Priddy and his co-defendant, Dion Swanson, were charged with multiple crimes by a federal grand jury in 2022. On April 17, 2023, Priddy pled guilty to attempted carjacking, carjacking, and using a firearm during a crime of violence.
The charges stem from a crime spree on the evening of November 23, 2020, involving an attempted carjacking in East Nashville where Priddy and Swanson attempted to carjack a vehicle. After the victim said his vehicle did not work, Priddy and his co-defendant beat him with weapons and their fists. They then took the victim’s cellphone, wallet, and pants before fleeing.
Less than an hour later, the two men crashed into the back of a vehicle stopped at an intersection. As the driver exited his vehicle to inspect the damage, Priddy and Swanson committed an armed carjacking. When the driver hesitated to give up his keys, Priddy and Swanson beat him unconscious in front of his family and then took his vehicle. Metropolitan Nashville Police Department officers apprehended Priddy and Swanson a short time later.
"As a result of today's sentence, this violent criminal will be removed from our community for almost a decade," said United States Attorney Henry C. Leventis. "I commend the outstanding work done in this case by the Metro-Nashville Police Department, the FBI, and the prosecutors in our office to protect Nashvillians from violent crime."
Priddy’s co-defendant has entered a guilty plea and will be sentenced by United States District Judge William L. Campbell Jr. in September.
The FBI Memphis Field Office and Metropolitan Nashville Police Department investigated the case.
Assistant U.S. Attorney Herbert L. Bunton III for the Middle District of Tennessee prosecuted the case.
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Clarksville Doctor Sentenced in Health Care Fraud CaseRead the Press Release
NASHVILLE – Dr. Samson K. Orusa, 61, of Clarksville, Tennessee, was sentenced yesterday to 84 months in federal prison after being convicted of over a dozen felony health care fraud charges, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
The defendant, through his medical clinic in Clarksville, billed federal health insurance programs for hundreds of medically unnecessary services, including unnecessary office visits and steroid injections. The evidence at trial showed that he required Medicare beneficiaries and other patients to visit his clinic as many as six times each month and to undergo unnecessary steroid injections in order to obtain their prescriptions. The evidence also showed that the defendant altered progress visit notes in his patients’ medical records to justify higher billing rates.
“Combating health care fraud is a top priority for this office,” said United States Attorney Leventis. “As a result of the excellent work done in this case by our prosecutors and law enforcement partners, this physician will now be serving 7 years in federal prison for defrauding the Medicare program.”
The defendant was charged in 2018 with 45 criminal violations, including 13 counts of health care fraud. He was convicted at trial of all charges except for nine counts of illegal distribution of oxycodone. Yesterday’s sentencing concerned only the health care fraud crimes charged in the indictment.
In addition to the 84-month prison sentence, the defendant was ordered to pay over $1 million in restitution and serve three years of supervised release. He was also fined $195,000 and must forfeit previously seized assets worth approximately $900,000.
This case was investigated by the U.S. Department of Health & Human Services Office of Inspector General; the U.S. Drug Enforcement Administration; the Internal Revenue Service Criminal Investigation, the Tennessee Bureau of Investigation; the Clarksville Police Department; and the 19th Judicial District Drug Task Force.
Assistant U.S. Attorneys Stephanie N. Toussaint and Miller A. Bushong prosecuted this case.
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Franklin Man Pleads Guilty to COVID-19 Relief Fraud, Bank Fraud, and Money-LaunderingRead the Press Release
NASHVILLE – John Paul Dillon, 40, of Franklin, Tennessee pleaded guilty today in U.S. District Court to fraud in connection with COVID-19 relief programs, mortgage fraud, and money laundering, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
Dillon pleaded guilty to one count of bank fraud, one count of wire fraud, and one count of money-laundering related to fraudulent loan applications submitted in connection with the Payroll Protection Program (“PPP”) and the Economic Injury Disaster Loan Program. In support of federal loan applications, Dillon falsely claimed he and others earned hundreds of thousands of dollars in income from a “ride-share business” and also falsely claimed Dillon operated a company which paid over $500,000 in wages to employees.
In addition to the pandemic-related charges, Dillon pleaded guilty to one count of bank fraud stemming from a fraudulent loan application he submitted to finance a $470,000 mortgage. Among other things, Dillon submitted a falsified bank statement in support of this loan application.
Dillon obtained almost $1,000,000 through his fraud. In addition to agreeing to the entry of money judgments against him, Dillon has agreed to forfeit his residence, two late-model automobiles, and a pontoon boat.
Dillon’s sentencing has been set for March 4, 2024. He faces up to 30 years’ imprisonment and a fine of up to $1,000,000 on each of the bank fraud counts; up to 20 years’ imprisonment and a fine of up to $250,000 on the wire fraud count; and up to 10 years’ imprisonment and a fine of up to $250,000 on the money-laundering count.
This case was investigated by the Federal Deposit Insurance Corporation, Office of Inspector General; the Federal Bureau of Investigation; the Small Business Administration, Office of Inspector General; and the U.S. Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Taylor J. Phillips is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Murfreesboro Man Convicted for July 2020 Violent Crime SpreeRead the Press Release
NASHVILLE – Defendant Joshua Hallmon, 27, of Murfreesboro, Tennessee, was convicted today by a federal jury on all 12 counts he faced for a string of violent crimes he committed in Murfreesboro and Franklin, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
Hallmon and two co-defendants, Charles Melvin Walker and Walter Lee Williams, were charged by a federal grand jury in May 2021 with multiple counts of Hobbs Act robbery, carjacking, kidnapping, and using a firearm during and in relation to a crime of violence. Additionally, Hallmon was charged with being a convicted felon in possession of a firearm. Prior to trial, Walker and Williams both pleaded guilty to all charges against them.
The charges in this case related to a crime spree that spanned from July 6 to July 27, 2020, involving the armed robberies of Twice Daily and Mapco gas stations in Murfreesboro on July 6 and July 23, 2020. Then, on the night of July 26-27, 2020, Hallmon and his co-defendants committed an armed carjacking and kidnapping in Murfreesboro, attempted to commit a second armed carjacking in Franklin, and committed a third armed carjacking and kidnapping in Murfreesboro in which Williams shot the victim in the face.
“As a result of today’s convictions, this violent criminal will be spending over three decades in federal prison,” said United States Attorney Henry C. Leventis. “I commend the outstanding work done in this case by our prosecutors and our state and federal law enforcement partners to protect our community from violent crime.”
Joshua Hallmon faces a mandatory minimum sentence of 34 years, and up to life, in federal prison. Hallmon and his co-defendants will be sentenced by United States District Judge Eli Richardson later this year.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Murfreesboro Police Department; the Rutherford County Sheriff’s Office; the Smyrna Police Department; the Metropolitan Nashville Police Department; the Franklin Police Department; and the Tennessee Highway Patrol. Assistant U.S. Attorneys Chris Suedekum and Rachel Stephens are prosecuting the case.
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Former Tennessee State Senator and Co-Conspirator Sentenced for Campaign Finance SchemeRead the Press Release
Former Tennessee State Senator and practicing attorney Brian Kelsey was sentenced today to one year and nine months in prison for violating campaign finance laws and conspiring to defraud the Federal Election Commission (FEC) as part of a scheme to benefit his 2016 campaign for U.S. Congress.
According to court documents, Kelsey, 45, of Alexandria, Virginia, secretly and unlawfully funneled money from multiple sources, including his own Tennessee State Senate campaign committee, to his federal campaign committee. To carry out the scheme, Kelsey conspired with others, including Joshua Smith, who owned a members-only social club in Nashville, of which Kelsey was a member, and controlled a Tennessee political action committee affiliated with the club. Kelsey, Smith, and others caused a national political organization to make illegal and excessive contributions to Kelsey’s federal campaign committee by secretly coordinating with the organization on advertisements supporting Kelsey’s federal candidacy, which caused false reports of contributions and expenditures to be filed with the FEC.
“The defendants attempted to hide from voters how Kelsey raised and spent campaign money,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The integrity of our elections is essential to democracy, and voters should know how candidates raise and spend campaign dollars. The Department will continue to work alongside our law enforcement partners to uncover and prosecute campaign finance schemes designed to evade disclosure, and to ensure that violations of these laws carry a high cost.”
“Brian Kelsey intentionally violated federal campaign finance laws and his oath as a state senator in order to deny Tennessee voters their right to make informed decisions about his candidacy for Congress,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “The court’s sentence today reflects the seriousness of his crimes and is a strong reminder of our commitment to root out public corruption and ensure the integrity of federal elections.”
Kelsey and his co-conspirators orchestrated the concealed movement of $91,000 – $66,000 of which came from Kelsey’s State Senate campaign committee, and $25,000 of which came from a nonprofit corporation that publicly advocated on legal justice issues – to a national political organization for the purpose of funding advertisements that urged voters to support Kelsey in the August 2016 primary election. Kelsey and his co-conspirators also caused the political organization to make $80,000 worth of contributions to Kelsey’s federal campaign committee in the form of coordinated expenditures.
“The sentence handed down today makes it clear that no one is above the law,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI diligently investigates campaign finance fraud to ensure that U.S. elections are free from unfair influence, and anyone caught attempting to scheme their way into office will be held accountable.”
Joshua Smith was also sentenced today to five years of probation for aiding and abetting the solicitation, receipt, direction, transfer, and spending of soft money in connection with a federal election.
The FBI Memphis Field Office investigated the case.
Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section, Assistant U.S. Attorney Amanda Klopf for the Middle District of Tennessee, and Assistant U.S. Attorney David Pritchard for the Western District of Tennessee prosecuted the case.
Former Tennessee State Senator and Co-Conspirator Sentenced for Campaign Finance SchemeRead the Press Release
NASHVILLE – Former Tennessee State Senator and practicing attorney Brian Kelsey was sentenced today to one year and nine months in prison, followed by three years of supervised release, for violating campaign finance laws and conspiring to defraud the Federal Election Commission (FEC) as part of a scheme to benefit his 2016 campaign for U.S. Congress.
According to court documents, Kelsey, 45, of Alexandria, Virginia, secretly and unlawfully funneled money from multiple sources, including his own Tennessee State Senate campaign committee, to his federal campaign committee. To carry out the scheme, Kelsey conspired with others, including Joshua Smith, who owned a members-only social club in Nashville, of which Kelsey was a member, and controlled a Tennessee political action committee affiliated with the club. Kelsey, Smith, and others caused a national political organization to make illegal and excessive contributions to Kelsey’s federal campaign committee by secretly coordinating with the organization on advertisements supporting Kelsey’s federal candidacy, which caused false reports of contributions and expenditures to be filed with the FEC.
“Brian Kelsey intentionally violated federal campaign finance laws and his oath as a state senator in order to deny Tennessee voters their right to make informed decisions about his candidacy for Congress,” said United States Attorney Henry C. Leventis for the Middle District of Tennessee. “The court’s sentence today reflects the seriousness of his crimes and is a strong reminder of our commitment to root out public corruption and ensure the integrity of federal elections.”
“The defendants attempted to hide from voters how Kelsey raised and spent campaign money,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The integrity of our elections is essential to democracy, and voters should know how candidates raise and spend campaign dollars. The Department will continue to work alongside our law enforcement partners to uncover and prosecute campaign finance schemes designed to evade disclosure, and to ensure that violations of these laws carry a high cost.”
Kelsey and his co-conspirators orchestrated the concealed movement of $91,000 – $66,000 of which came from Kelsey’s State Senate campaign committee, and $25,000 of which came from a nonprofit corporation that publicly advocated on legal justice issues – to a national political organization for the purpose of funding advertisements that urged voters to support Kelsey in the August 2016 primary election. Kelsey and his co-conspirators also caused the political organization to make $80,000 worth of contributions to Kelsey’s federal campaign committee in the form of coordinated expenditures.
“The sentence handed down today makes it clear that no one is above the law,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI diligently investigates campaign finance fraud to ensure that U.S. elections are free from unfair influence, and anyone caught attempting to scheme their way into office will be held accountable.”
Joshua Smith was also sentenced today to five years of probation, a $250 fine, and 720 hours of community service for aiding and abetting the solicitation, receipt, direction, transfer, and spending of soft money in connection with a federal election.
The FBI Memphis Field Office investigated the case.
Assistant U.S. Attorney Amanda Klopf for the Middle District of Tennessee, Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorney David Pritchard for the Western District of Tennessee prosecuted the case.
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Putnam County Man Charged with Possession of Destructive Devices and a Firearm with an Obliterated Serial NumberRead the Press Release
NASHVILLE, Tenn. – August 10, 2023 – Levi Austin Flatt, 31, of Baxter, Tennessee, was charged yesterday by federal criminal complaint with three counts related to possession of a destructive device and one count related to possession of a firearm with an obliterated serial number announced United States Attorney Henry C. Leventis.
The criminal complaint alleges that on August 7, 2023, officers with the Putnam County Sheriff’s Office (“PCSO”) observed a video on the Flatt’s Facebook account that depicted him holding a plastic bottle, a wine bottle, and a galvanized pipe with an endcap affixed to the end. The three items were taped together with what appears to be yellow tape. Black and white braided electrical wires hung from the device. In the video, Flatt stated: “Hey ATF, let me know if this is legal, a pound of Tannerite, a pipe bomb, and a wine bottle full of diesel…oh is that legal ATF… just let me know about this…somebody let me know.”
Later that same day, PCSO officers pulled over Flatt while he was driving less than a mile from the Putnam County Fair. Flatt exited his van with an empty holster on his right side and a fixed blade knife on his lower back. Officers searched the van and found, among other things, a fully loaded 9 mm pistol with an obliterated serial number; seven extended magazines containing 145 rounds of 9 mm ammunition; three additional suspected bombs, one of which contained metal shrapnel inside; several additional metal pipes with one end of each pipe welded closed; two Molotov cocktails; and, a receipt for a propane tank.
This case is being investigated by the ATF, FBI, Tennessee Highway Patrol – Special Operations Unit, and the Putnam County Sheriff’s Office. Assistant U.S. Attorney Kathryn Risinger is prosecuting the case.
A complaint is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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