Middle District of Tennessee
Press releases recorded for this federal judicial district.
Spring Hill Sisters Charged in Tax Fraud ConspiracyRead the Press Release
NASHVILLE – A federal indictment unsealed today, charges two Spring Hill, Tennessee women with conspiracy to commit tax fraud and 12 counts of employment tax fraud, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Ketura Oden, 46, and Consuela Oden, 51, were arrested by IRS Criminal Investigation agents earlier today.
According to the indictment, between February 2015 and February 2022, Ketura Oden and Consuela Oden, who are sisters, conspired to defraud the IRS with respect to employment taxes. The indictment alleges that beginning in 2004, Ketura Oden owned and operated a home health care business, Complete Care Choice, in Spring Hill, Tennessee. Between 2006 and 2012, the IRS initiated two collections actions because Ketura Oden had withheld taxes from her employees’ paychecks while failing to pay those taxes to the IRS. Ketura Oden entered into two installment agreements with the IRS.
In January 2013, the IRS opened another collection action on Complete Care Choice because Ketura Oden had again withheld employment taxes from her employees’ paychecks while failing to pay those taxes to the IRS. In December 2014, the IRS notified Ketura Oden that if she did not pay the employment taxes, the IRS would recommend her for civil injunction or criminal prosecution. Two months later, Ketura Oden opened her business under a new name, Complete Home Care Services of TN, Inc. (Complete Home Care), and registered the business in the State of Tennessee, listing Consuela Oden as the owner.
A few days after opening the business under the new name, Ketura Oden told the IRS that she was closing Complete Care Choice and going to work at another home health agency as a wage-earning employee. Ketura Oden also falsely told the IRS that Complete Home Care provided different services than Complete Care Choice. In fact, Ketura Oden continued to run the business, and Complete Home Care continued to operate just as Complete Care Choice had done, with the same employees, clients, customers, and vendors. Consuela Oden held herself out to the IRS and others as the “owner” of the business.
In January 2017, the IRS initiated a collection action against Complete Home Care for unpaid employment taxes. During the collection action, both women held Consuela Oden out to be the owner of the business.
In October 2017, Consuela Oden filed a personal income tax return, on which she claimed a loss from the business. That loss reduced her tax liability and caused Consuela Oden to receive a tax refund in the amount of $14,534, which the IRS applied to reduce a previously assessed tax debt against her.
In January 2018, a Special Agent with IRS-Criminal Investigation issued a summons to Consuela Oden that required her to provide the IRS with records related to Complete Home Care. Consuela Oden did not comply with the summons.
A federal district court judge in the Middle District of Tennessee issued an order for Consuela Oden to show cause why she had not complied with the summons. Consuela Oden eventually provided some records in response to the summons.
In addition to conspiracy, both Ketura Oden and Consuela Oden are also charged with twelve counts of employment tax fraud. The indictment alleges that the sisters withheld federal income taxes, Medicare taxes, and Social Security taxes from their employees’ paychecks, but did not pay those taxes over to the IRS as they were required to do. Ketura Oden and Consuela Oden allegedly withheld and failed to pay to the IRS approximately $640,789 in employment taxes that they withheld from Complete Home Care employees’ paychecks.
If convicted, both defendants face up to five years in prison and a $250,000 fine on each count.
This case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Kathryn W. Booth 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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Former Tennessee State Representative Charged with Honest Services Wire FraudRead the Press Release
NASHVILLE – Former Tennessee State Representative Robin Smith, 58, of Hixson, Tennessee, pleaded guilty today to a single count of honest services wire fraud, following charges filed on Friday, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
According to a criminal Information filed Friday in U.S. District Court, Smith, representing Tennessee House District 26, engaged in a fraudulent scheme with others to contract with Phoenix Solutions, LLC to provide mail and consulting services for members of the Tennessee General Assembly. Smith and others falsely claimed that Phoenix Solutions was operated by an experienced political consultant named “Matthew Phoenix.” In fact, “Matthew Phoenix” was a fictitious person.
Smith received kickbacks in exchange for using her position to pressure the Tennessee House Speaker’s Office to approve Phoenix Solutions as a Mailer Program vendor and disperse State funds to Phoenix Solutions.
The Information also alleged that in September and December 2020, Smith received two checks from Phoenix Solutions totaling more than $24,000, which she deposited into her consulting firm’s bank account.
Smith will be sentenced on October 17, 2022.
This case was investigated by the FBI. Assistant U.S. Attorney Amanda J. Klopf and Trial attorney John P. Taddei of the Justice Department’s Public Integrity Section are prosecuting the case.
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Nashville Man Sentenced to Federal Prison for Sex-Trafficking 12-Year-Old RunawayRead the Press Release
NASHVILLE – A Nashville man previously convicted of sex trafficking a minor and transportation of a minor for the purpose of engaging in prostitution was sentenced today to 30 years in federal prison, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Tavarie Williams, 42, was convicted of the charges by a federal jury in February 2020 after a week-long trial. U.S. District Judge Eli J. Richardson imposed the sentence earlier today.
“This is a fitting sentence for such egregious crimes,” said U.S. Attorney Wildasin. “I commend our law enforcement partners and prosecution team for their exceptional work in rescuing this child and seeking justice on her behalf. Disrupting human trafficking remains a priority of this Office and those who engage in this activity should expect that local, state, and federal law enforcement will devote their full resources to bringing them to justice.”
According to evidence and testimony at trial, in June and July 2016, Williams picked up a 12-year-old runaway girl in San Antonio, Texas and posted ads on Backpage.com advertising her for prostitution. During this time, Williams transported the girl to Memphis, Nashville and Knoxville, Tennessee, for the purpose of having sex with Backpage clients. Evidence and testimony also established that Williams engaged in sexual intercourse with the 12-year-old as well.
On July 29, 2016, Williams was arrested at a hotel in Franklin, Tennessee, and the 12-year-old was rescued.
This case was investigated by the Tennessee Bureau of Investigation; The U.S. Marshals Service; the Franklin Police Department; and the Williamson County Sheriff’s Office. Assistant U.S. Attorneys Brooke Schiferle and Juliet Aldridge prosecuted the case.
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Nashville Man Convicted of Federal Firearm & Drug Offenses After Killing Another During Drug DealRead the Press Release
NASHVILLE – A federal jury in Nashville yesterday found a local man guilty of federal firearm offenses following the shooting death of another man during a drug deal in 2019, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Tru Booker, 30, of Nashville, Tenn., was convicted of all counts after a three-day trial before U.S. District Judge William L. Campbell, Jr. Booker was previously indicted on charges of possessing, using, brandishing, and discharging a weapon in furtherance of a drug trafficking crime; possession with the intent to distribute marijuana and methamphetamine; being an unlawful user of a narcotic in possession of a firearm and ammunition; and possessing a weapon during the furtherance of a drug trafficking crime.
“I commend the trial team and our partner law enforcement agencies for the excellent investigative work and preparation in seeking justice in this matter,” said U.S. Attorney Wildasin. “This is another example of the cooperative effort underway to systematically remove dangerous criminals and drug dealers from our communities for long periods of time.”
According to testimony at trial, on July 8, 2019, Booker agreed to meet Markus Cantrell in the driveway of his grandmother’s house on Ewingwood Drive, in Nashville, for the purpose of selling Cantrell marijuana. Booker was sitting in the vehicle with his firearm by his side, preparing a quarter pound of marijuana to sell. Cantrell entered the vehicle, and shortly thereafter a struggle ensued, with several shots being fired inside the vehicle, resulting in Cantrell being struck in the leg and Booker being struck in the arm.
The struggle continued on the ground outside of the car, and Booker’s girlfriend and mother came to his aid and began striking Cantrell. Booker eventually gained control of the firearms, and despite his mother’s pleas to let Cantrell go, Booker shot Cantrell in the forehead at close range, killing him.
Less than three weeks after this incident, Booker was involved in a minor traffic crash in Madison, Tennessee. The subsequent investigation by Metro Police officers found digital scales; approximately 211 grams of marijuana; 195 methamphetamine pills; Hydrocodone and Xanax pills; $1,238 in cash; plastic baggies; a loaded Taurus, 9mm pistol; and two extended magazines for the pistol.
Booker faces a mandatory minimum sentence of 10 years in prison, along with a mandatory consecutive sentence of five years in prison, when he is sentenced later this year. Additional charges relating to the murder of Markus Cantrell are pending in state court.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Josh Kurtzman and Dwight Artis prosecuted the case.
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Clarksville Auto Dealer Charged with Bank FraudRead the Press Release
NASHVILLE – A Clarksville, Tennessee, auto dealer was charged today with bank fraud, resulting from a fraudulent scheme in which he obtained loans from several credit unions for the same vehicles, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Andrew Oliver, 31, of Cadiz, Kentucky, the owner of First Choice Auto Sales in Clarksville, Tenn., and AJ’s Auto Sales in Hopkinsville, Kentucky, was charged in a criminal information with obtaining loans from several financial institutions on the same vehicles. The Information alleges that Oliver inflated his income on loan application documents and omitted the fact that he had already obtained loans from other financial institutions regarding the same vehicle.
Specifically, the information alleges that Oliver obtained loans totaling $215,000 from three credit unions for the purchase of the same Cadillac and obtained loans totaling $340,000 from six credit unions for the purchase of a Ford F-450. The fraudulent loans caused a total loss to the credit unions of $368,585.52.
If convicted, Oliver faces up to 30 years in prison and a $1 million fine.
The United States also seeks to forfeit any property derived from the proceeds of the crime, including a money judgement in the amount of $368,585.52.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Kathryn W. Booth.
The charges are merely accusations. The defendant is presumed innocent until proven guilty in a court of law.
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United States Obtains Consent Judgment and Permanent Injunction in Civil Case Against Two Clay County PharmacistsRead the Press Release
NASHVILLE – In a settlement reached this week, two former Clay County, Tennessee, pharmacists have been barred from dispensing controlled substances for the better part of the next two decades, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
John Polston, of Tomkinsville, Kentucky, and the former Pharmacist-in-charge of Oakley Pharmacy, Inc., d/b/a Dale Hollow Pharmacy, in Celina, Tennessee, has relinquished his licenses to practice pharmacy from the Kentucky Board of Pharmacy and the Tennessee Board of Pharmacy and is prohibited from applying for or seeking the renewal or reinstatement of a license or certificate to practice pharmacy anywhere in the United States until at least March 1, 2040. In addition, Polston must pay a civil penalty in the amount of $1,000.00.
Michael Griffith, of Mount Juliet, Tennessee, and the former Pharmacist-in-Charge of Xpress Pharmacy of Clay County, LLC, must relinquish his license to practice pharmacy from the Tennessee Board of Pharmacy and is prohibited from applying for or seeking the renewal or reinstatement of a license or certificate to practice pharmacy anywhere in the United States until at least March 1, 2038. Griffith must also pay a civil penalty in the amount of $2,000.00
In February 2019, the Justice Department filed a civil complaint, alleging violations of the Controlled Substances Act and the False Claims Act, against Dale Hollow Pharmacy and Xpress Pharmacy, including pharmacists John Polston, Michael Griffith, and others. The government sought and received a Temporary Restraining Order and a Preliminary Injunction, which has remained in place, and which prevented the pharmacies and pharmacists from dispensing controlled substances.
In addition to the civil actions, and in separate criminal cases, on March 23, 2021, John Polston pleaded guilty to conspiracy to distribute and dispense controlled substances, illegal distribution of controlled substances, and conspiracy to defraud the United States and commit an offense through the payment of illegal kickbacks, in violation of the Anti-Kickback Statute. He is currently awaiting sentencing. Michael Griffith pleaded guilty on August 26, 2021, to conspiracy to distribute and dispense controlled substances and to two counts of health care fraud. Griffith is also awaiting sentencing.
Assistant U.S. Attorney Ellen Bowden McIntyre is handling the civil investigation and litigation with the support of the Department of Justice’s Consumer Protection Branch.
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Nashville Man Sentenced to Federal Prison for Series of Church ArsonsRead the Press Release
NASHVILLE – Alan Douglas Fox, 29, of Nashville, was sentenced today to seven years in federal prison for a series of church arsons which occurred in 2019, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee. Fox was charged by criminal information on August 25, 2021, and pleaded guilty to all counts on October. 20, 2021.
According to court documents and statements made during the plea and sentencing hearings, Fox intentionally set fire to the Crievewood United Methodist Church on June 17, 2019; the Crievewood Baptist Church on June 25, 2019; the Saint Ignatius of Antioch Catholic Church on June 25, 2019; and the Priest Lake Community Baptist Church on June 26, 2019, all because of their religious character. Fox also carried and used a handgun to break into the Crievewood Baptist Church to facilitate the arson. The fires resulted in significant damage to all four churches.
This case was investigated by the FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department, and the Nashville Fire Department. It was prosecuted by Assistant U.S. Attorney Brooke Schiferle and Trial Attorney Kyle Boynton of the Justice Department’s Civil Rights Division.
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Florida-Based Medicare Reimbursement Consultant Resolves Litigation for Allegedly Causing False Diabetic Supply Claims to MedicareRead the Press Release
Medicare reimbursement consultant Ted Albin and his wholly-owned consulting and billing firm Grapevine Billing and Consulting Services Inc. (Grapevine), both based in Stuart, Florida, have agreed to pay $50,000 to resolve allegations that they violated the False Claims Act. This settlement resolves allegations that Albin and Grapevine caused the submission of false claims to Medicare because of kickbacks to Medicare beneficiaries and because patients were ineligible to receive glucometers. This settlement is based on the United States’ analysis of financial disclosures made by Grapevine.
“Consultants must abide by federal requirements when providing Medicare billing advice,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “We will continue to protect the integrity of federal health insurance programs by pursuing individuals or entities responsible for the submission of false or fraudulent claims, including those who cause such claims to be submitted.”
In its complaint, the United States alleged that, from 2008 until 2017, Albin and Grapevine provided consulting services to now-defunct diabetic testing supplier Arriva Medical LLC (Arriva), its parent Alere Inc. (Alere), and starting in January 2018, Abbott Laboratories (Abbott), after Abbott acquired Arriva and Alere in October 2017. From at least 2009 until 2011, Albin, through Grapevine, allegedly served effectively as the Head of Reimbursement at Arriva, overseeing Arriva’s reimbursement department, developing Arriva’s policies for the collection of beneficiary copayment obligations and submitting claims to Medicare on Arriva’s behalf for diabetic testing supplies.
The United States alleged that, as consultants to Arriva, from April 2010 until the end of 2016, Albin and Grapevine knowingly caused the submission of claims to Medicare that were tainted by the payment of kickbacks to Medicare beneficiaries in the form of (i) free or “no cost” glucometers, or (ii) the routine waiver of beneficiary copayment obligations. Additionally, the United States alleged that Albin and Grapevine knowingly caused the submission of claims to Medicare for glucometers on behalf of beneficiaries who were not eligible to seek reimbursement because they had received a meter paid for by Medicare within the previous five years.
The United States produced sworn testimony from Albin in the litigation in which he admitted that, as a reimbursement consultant for Arriva, Albin personally (1) would “write off customer co-payments” because “I could tell someone on my team ‘Yes, write this off,’” (2) engaged in such write-offs “probably every week,” (3) engaged in “mass write-offs of denials by Medicare” for ineligible meters, (4) created Arriva’s “routine policy not to send a bill for customers who owed less than $5,” and (5) “came up with the policy” of “courtesy adjustments” in the form of copayment waivers in response to customer complaints about their Medicare coinsurance obligations.
“The resolution of this matter brings about the conclusion of a lengthy and protracted investigation and litigation in which the United States sought and received substantial penalties and damages as a result of allegations of False Claims Act violations,” said U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee. “I commend the legal team and investigators for working diligently to preserve the integrity of our federal healthcare programs.”
“Those who provide advice to health care providers about Medicare billing must do so with integrity,” said Special Agent in Charge Tamala E. Miles of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to investigate those who cause fraudulent claims to be submitted to federal health care programs.”
The litigation resolved by this settlement originally included claims against Arriva and Alere that were brought under the qui tam or whistleblower provisions of the False Claims Act by Gregory Goodman, a former employee in Arriva’s Antioch, Tennessee call 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 of a qui tam action, as the United States did here. In August 2021, Arriva and Alere agreed to pay $160 million to resolve the claims against them. The United States also previously settled for $1 million claims against Arriva’s founders, David Wallace and Timothy Stocksdale, for their alleged part in the scheme. The litigation, which is concluded by the settlement announced today, is currently captioned United States v. Albin, et al., Case No. 3:13-cv-00760 (M.D. Tenn.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Middle District of Tennessee and HHS-OIG, with the assistance of the Tennessee Bureau of Investigation.
The investigation and resolution of this matter illustrates the government’s emphasis on combating 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).
The matter was handled by Trial Attorney Jake M. Shields of the Civil Division and Assistant U.S. Attorney Ellen Bowden McIntyre of the Middle District of Tennessee.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Florida-Based Consultant Resolves Litigation for Allegedly Causing False Diabetic Supply Claims to MedicareRead the Press Release
NASHVILLE – Medicare reimbursement consultant Ted Albin and his wholly-owned consulting and billing firm Grapevine Billing and Consulting Services Inc. (Grapevine), both based in Stuart, Florida, have agreed to pay $50,000 to resolve allegations that they violated the False Claims Act. This settlement resolves allegations that Albin and Grapevine caused the submission of false claims to Medicare because of kickbacks to Medicare beneficiaries and because patients were ineligible to receive glucometers. This settlement is based on the United States’ analysis of financial disclosures made by Grapevine.
“The resolution of this matter brings about the conclusion of a lengthy and protracted investigation and litigation in which the United States sought and received substantial penalties and damages as a result of allegations of False Claims Act violations,” said U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee. “I commend the legal team and investigators for working diligently to preserve the integrity of our federal healthcare programs.”
In its complaint, the United States alleged that, from 2008 until 2017, Albin and Grapevine provided consulting services to now-defunct diabetic testing supplier Arriva Medical LLC (Arriva), its parent Alere Inc. (Alere), and starting in January 2018, Abbott Laboratories (Abbott), after Abbott acquired Arriva and Alere in October 2017. From at least 2009 until 2011, Albin, through Grapevine, allegedly served as the Head of Reimbursement at Arriva, overseeing Arriva’s reimbursement department, developing Arriva’s policies for the collection of beneficiary copayment obligations, and submitting claims to Medicare on Arriva’s behalf for diabetic testing supplies.
The United States alleged that, as consultants to Arriva, from April 2010 until the end of 2016, Albin and Grapevine knowingly caused the submission of claims to Medicare that were tainted by the payment of kickbacks to Medicare beneficiaries in the form of free or “no cost” glucometers, or the routine waiver of beneficiary copayment obligations. Additionally, the United States alleged that Albin and Grapevine knowingly caused the submission of claims to Medicare for glucometers on behalf of beneficiaries who were not eligible to seek reimbursement because they had received a meter paid for by Medicare within the previous five years.
The United States produced sworn testimony from Albin in the litigation in which he admitted that, as a reimbursement consultant for Arriva, Albin personally (1) would “write off customer co-payments” because “I could tell someone on my team ‘Yes, write this off,’” (2) engaged in such write-offs “probably every week,” (3) engaged in “mass write-offs of denials by Medicare” for ineligible meters, (4) created Arriva’s “routine policy not to send a bill for customers who owed less than $5,” and (5) “came up with the policy” of “courtesy adjustments” in the form of copayment waivers in response to customer complaints about their Medicare coinsurance obligations.
“Consultants must abide by federal requirements when providing Medicare billing advice,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “We will continue to protect the integrity of federal health insurance programs by pursuing individuals or entities responsible for the submission of false or fraudulent claims, including those who cause such claims to be submitted.”
“Those who provide advice to health care providers about Medicare billing must do so with integrity,” said Special Agent in Charge Tamala E. Miles of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, we will continue to investigate those who cause fraudulent claims to be submitted to federal health care programs.”
The litigation resolved by this settlement originally included claims against Arriva and Alere that were brought under the qui tam or whistleblower provisions of the False Claims Act by Gregory Goodman, a former employee in Arriva’s Antioch, Tennessee call 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 of a qui tam action, as the United States did here. In August 2021, Arriva and Alere agreed to pay $160 million to resolve the claims against them. The United States also previously settled for $1 million claims against Arriva’s founders, David Wallace and Timothy Stocksdale, for their alleged part in the scheme. The litigation, which is concluded by the settlement announced today, is currently captioned United States v. Albin, et al., Case No. 3:13-cv-00760 (M.D. Tenn.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Middle District of Tennessee, and the U.S. Department of Health and Human Services Office of Inspector General, with the assistance of the Tennessee Bureau of Investigation.
The investigation and resolution of this matter illustrates the government’s emphasis on combating 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).
The matter was handled by Assistant U.S. Attorney Ellen Bowden McIntyre of the Middle District of Tennessee and Trial Attorney Jake M. Shields of the Civil Division.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Mid-State Man Charged in Million Dollar Investment Fraud SchemeRead the Press Release
NASHVILLE – A federal indictment unsealed today, charges Gregory Michael Vogel, aka Gregory Michael Schneider, 49, formerly of Hendersonville, Tenn. and Gallatin, Tenn., with eight counts of wire fraud and one count of money laundering in relation to an investment scheme, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Vogel was arrested this morning by federal agents and will make an appearance before a U.S. Magistrate Judge later today.
According to the indictment, between April 2015 and May 2019, Vogel devised a scheme to defraud investors by soliciting individuals to make investments with his company in foreign currency exchange (forex) websites and software. Vogel claimed that these forex websites would generate substantial revenue, providing investors with thousands of dollars in monthly profits, before eventually being sold to a third party, so that Vogel and the investor could both realize an even greater return on the investment.
The indictment also alleges that Vogel induced investors to make investments in the forex websites by omitting and concealing material information about Vogel’s background and investment history, his management of the forex websites, his breaches of promises and contractual provisions, and the actual ownership structure of the forex websites.
Some of the omitted material information included that Vogel, under his prior name of Gregory Michael Schneider, had been sued by investors for a previous investment offering and was found liable for committing fraud, breach of fiduciary duty, and conversion, among other acts. As a result, Vogel was permanently enjoined from soliciting or providing any business investments or investment advice in the future. Vogel had also been sued by the Commodity Futures Trading Commission (CFTC) and entered into a consent order in which he was permanently enjoined from trading or participating in certain transactions supervised by the CFTC.
As a result of this scheme, Vogel and his business received more than $1 million from more than a dozen investors, much of which he converted to his own personal use.
If convicted, Vogel faces up to 20 years in prison on each wire fraud count, 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 judgement in the amount of at least $1,177,540.00.
This case was investigated by the IRS-Criminal Investigation and the United States Postal Inspection Service. Assistant U.S. Attorney Chris Suedekum 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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Substance Abuse Treatment Program Agrees to Pay Civil Penalties to Settle Allegations of Controlled Substances Act ViolationsRead the Press Release
NASHVILLE – VCPHCS IX, LLC, which operates a substance abuse treatment program in Nashville, has agreed to pay a civil settlement of $50,000 to resolve allegations that it violated the recordkeeping requirements of the Controlled Substances Act (CSA), announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
The United States alleged that VCPHCS failed to maintain complete and accurate records of the movement of controlled substances, and omitted material information on multiple forms required by the Drug Enforcement Administration (DEA), which are used to order and track controlled substances. Additionally, the United States alleged that VCPHCS failed to include a required form with a return shipment for controlled substances.
“Complete and accurate records are critical to ensure the safe distribution of controlled substances and to protect against diversion,” said U.S. Attorney Wildasin. “For this reason, our Office is committed to expecting total compliance with the Controlled Substances Act.”
“Everyone who is involved in the safe and legal distribution of controlled substances has an obligation to follow the law and do their part to help protect the nation’s prescription drug supply chain against diversion, or other wrong-doing,” said Special Agent in Charge J. Todd Scott, who heads the Drug Enforcement Administration’s Louisville Division. “Proper record keeping is an essential step in this endeavor, and compliance with the Controlled Substances Act is non-negotiable.”
Congress passed the CSA to combat the illegal distribution and abuse of controlled substances, including prescription medications. Under the CSA, entities registered with the DEA who purchase, distribute, dispense, transfer, or sell controlled substances must comply with strict inventory and documentation requirements. Regulations promulgated under the CSA require that each DEA registrant, including narcotic treatment programs, maintain complete and accurate inventories and records of each substance manufactured, received, sold, delivered, dispensed, or otherwise disposed of by the registrant for two years. These requirements play a vital role in ensuring the appropriate handling, accounting, and distribution of controlled substances.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the Drug Enforcement Administration’s Nashville Field Office Regulatory Group. The United States was represented by Assistant U.S. Attorney Kaitlin E. Hazard.
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Federal Indictments Unsealed in Maury & Lewis County Drug Distribution and ConspiraciesRead the Press Release
NASHVILLE – A lengthy investigation by federal and local law enforcement has resulted in the indictment of 22 individuals for illegally distributing substantial amounts of controlled substances in and around the areas of Maury County and Lewis County, Tennessee. The last of three federal indictments returned last month was unsealed yesterday, and all but one charged defendant have been taken into custody.
In making the announcement, U.S. Attorney Mark H. Wildasin, joined by Douglas Korneski, FBI Special Agent in Charge of the Memphis Division, and DEA Special Agent in Charge of the Louisville Division, J. Todd Scott, commended the investigative work of the agencies involved and noted the high level of cooperation and participation by local law enforcement agencies, all of which contributed substantially to the investigation resulting in the indictments.
The first indictment charges the following 14 individuals with conspiracy to possess with intent to distribute and to distribute cocaine, crack cocaine, methamphetamine, and marijuana, between March 2018 and September 2019:
Julio Esparza, aka Beto, 45; Freddy Quinones, 48; and Jesus Silva, aka Barbas, 40, all of McAllen, Texas; Brandon Dailey, aka Willie Earl, 40; Henry Davis, aka Hank, 42; Vincent Conner, aka Roe, 37; Derrick Nixon, aka Chewy, 54; Shanika Odom, aka Butterball, 31; Terry Strayhorn, aka Goldie Mac, 41; and Samuel Abernathy, 44, all of Mount Pleasant, Tenn.; Brent Burns, aka Smiley, 38; and Tristen Tisby, aka Jolly, 29, both of Columbia, Tenn.; and Tory Hardison, 27; and Carson Lunn, 24, both of Pulaski, Tenn.
The second indictment charges the following seven individuals with conspiracy to possess with intent to distribute and to distribute controlled substances, including heroin, methamphetamine, cocaine, crack cocaine, oxycodone, and marijuana, between October 2017 and November 2020:
Michael Sowell, aka Mac Black, 37; Frank Sparkman, aka Chucky, 40; Antonio Sowell, aka Premo, 37; Tanasha Vaughn, aka Nesha, 22, all of Hohenwald, Tenn.; Charles Lowe-Kelley, aka White Chaz, 30, of Columbia, Tenn.; and Darron Weakley, aka Snype Lucas, 35; and Antonio Laster, aka Lil Memphis, 31, both of Nashville, Tenn.
This indictment also charges Michael Sowell and Antonio Sowell with possession of a firearm in furtherance of a drug crime and being a convicted felon in possession of a firearm.
A third indictment charges Keadrick Duke, aka Kebe, 40, of Columbia, Tenn., with possession with intent to distribute and distribution of crack cocaine in November 2018.
Jesus Silva remains at large and is currently being sought by federal law enforcement officials.
The charges carry sentences of between five years and life in prison.
This case is the result of a multi-agency investigation conducted by the Federal Bureau of Investigation; the Drug Enforcement Administration; the Columbia Police Department; the Hohenwald Police Department; the Spring Hill Police Department; and the Williamson County Sheriff’s Department. Assistant U.S. Attorneys Robert S. Levine and Nani Gilkerson are prosecuting these cases.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law.
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Mid-State Man Sentenced to 35 Years in Federal Prison for Child Sexual Exploitation CrimesRead the Press Release
NASHVILLE – A Minor Hill, Tennessee, man was sentenced yesterday to 35 years in federal prison for crimes related to the production of child pornography, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Joshua Marc Hendon, 36, and his wife, Lori Hendon, were indicted in October 2017, on charges of conspiracy to produce child pornography, nine counts of production of child pornography, and possession of child pornography.
“Protecting innocent children from sexual predators remains one of our highest priorities,” said U.S. Attorney Wildasin. “I commend our law enforcement partners and prosecutors who work diligently to identify these predators and bring them to justice so that they no longer have the opportunity to exploit any child again.”
In November 2019, Joshua Hendon pleaded guilty to all charges and admitted that in the fall of 2015, he was a registered sex offender when he and his wife moved to Minor Hill, Tennessee. There, they befriended a nearby family that included two minor girls under the age of 12, and their father, who was disabled and struggled to care for the girls. Both girls began to visit the Hendon home regularly, where Lori would take care of them.
In October 2015, Joshua began communicating with the girls online, using the text application Kik. On several occasions, Joshua convinced the younger of the two girls to send him explicit photos. During one Kik chat conversation, the girl offered to send explicit photos in an effort to avoid having Joshua physically molest her. Joshua also enlisted the help of his wife to take photos of the girls when they were nude and taking baths in the Hendon home.
A subsequent forensic examination of Joshua’s cell phones and other electronic devices found numerous images of child pornography, including over 30 sexually explicit images of the two girls. Forensic interviews of the girls disclosed that Joshua had touched them inappropriately.
“Because of the investigative efforts of our HSI agents, a child sex offender has been sent to federal prison, where he will be unable to victimize other vulnerable children,” said HSI Nashville Special Agent in Charge Jerry C. Templet, Jr. “We will continue to work with our law enforcement partners to remove these offenders from our communities and ensure they pay for their heinous actions.”
The case against Lori Hendon remains pending and she is presumed innocent until proven guilty in a court of law.
This case was investigated by Homeland Security Investigations and the Giles County Sheriff’s Department. Assistant U.S. Attorney Carrie Daughtrey is prosecuting the case.
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Smyrna Man Charged in Paycheck Protection Program FraudRead the Press Release
NASHVILLE – A Smyrna, Tennessee man was charged today with money laundering in relation to a fraudulent scheme in which he obtained a small business loan under the Paycheck Protection Program (PPP), announced U.S. Attorney Mark Wildasin for the Middle District of Tennessee.
Shawn Palmer, 53, the sole owner of Palmers Transportation, Inc., in La Vergne, Tenn., was charged in a criminal Information, which alleges that in June 2020, Palmer fraudulently applied for and received a PPP loan in the amount of $514,370.
According to the charging document, in June 2020, Palmer sent several documents to an individual who assisted him in applying for a PPP loan. These documents were then submitted to Kabbage, Inc., a lender approved by the Small Business Administration to provide funds under the program which was designed to provide a direct incentive for small businesses to keep their workers on the payroll during the COVID-19 pandemic.
Palmer’s loan application falsely represented that Palmers Transportation had 27 employees, when in fact it had two, including himself; and although Palmers Transportation’s 2019 income tax return indicated its gross revenue was less than $200,000 the application falsely represented an average monthly payroll of $205,748; gross receipts of $6,744,254.12 for tax year 2019; and represented that Palmers Transportation had gross wages of $2,322,567 and $87,311 in state income tax withholdings for tax year 2019.
After the loan was approved and deposited into Palmer’s account, the individual who assisted him with the loan application sent a text message to Palmer requesting $25,000. Palmer used portions of the loan proceeds to establish and fund other accounts and used the funds for non-authorized expenditures such as purchasing a 2020 Ford F-350; a Maserati Quattroporte; and a 2020 Freightliner Coronado.
The Information also contains a forfeiture allegation in which the government seeks to recover money and property which represent the proceeds of the crime.
If convicted, Palmer faces up to 10 years in prison and a $250,000 fine.
This case was investigated by the Small Business Administration-Office of Inspector General; the IRS-Criminal Investigation; and the FBI. Assistant U.S. Attorney Stephanie N. Toussaint and Special Assistant U.S. Attorney Anna Haffner are prosecuting the case.
The charge is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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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Sparta Woman Pleads Guilty to Concealing Material Support Intended for a Foreign Terrorist OrganizationRead the Press Release
NASHVILLE – A Sparta, Tennessee, woman pleaded guilty in U.S. District Court today to concealing material support and resources intended to be provided to a Foreign Terrorist Organization, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Georgianna A.M. Giampietro, 36, was indicted by a federal grand jury in August 2019, charging her with attempting to provide material support to a designated Foreign Terrorist Organization. She was arrested at her home by FBI agents shortly thereafter and remains in custody. A superseding Information filed last week charges Giampietro with Concealment of Material Support and Resources Intended to be Provided to a Foreign Terrorist Organization, the charge to which she pleaded guilty.
“I commend our law enforcement partners and our prosecutors who have worked diligently to investigate this case and bring this individual to justice,” said U.S. Attorney Wildasin. “All attempts to provide support to terrorist organizations will receive the full attention and resources of our office and law enforcement to ensure that those who engage in such activity are held accountable. The safety and security of the American public demands no less.”
"Protecting the United States from terrorist attacks is the FBI’s number one priority,” said Special Agent in Charge Douglas M. Korneski of the FBI Memphis Field Office. "This case once again demonstrates the FBI's dedication to vigorously pursue those who provide material support to terrorist organizations, and hold them accountable for their conspiratorial actions. I am proud of the personnel who worked countless hours to protect the community, and I want to thank all of the agencies that participate in the FBI's Joint Terrorism Task Force. Together, we combine our resources to identify and disrupt threats to protect our community."
According to court documents, Giampietro admitted that, in September 2018, she had conversations with an undercover agent who expressed interest in travelling to Syria to join Hayat Tahrir Al-Sham (HTS), a designated Foreign Terrorist Organization. The undercover agent told Giampietro that her husband swore an oath of allegiance to HTS and that he intended to fight on behalf of HTS.
Giampietro initially provided instruction and advice to the undercover agent on how to travel to Syria in order to avoid detection by law enforcement, including actions that the undercover agent and her husband should undertake before making the trip, including severing ties with other persons 6-8 months in advance; acquiring new phones before they traveled; and to consider traveling through Turkey prior to entering Syria.
In subsequent conversations with the undercover agent, Giampietro offered to communicate with her contacts on their behalf to assist them in safely traveling to Syria to join HTS. Giampietro engaged in a series of communications with an individual whom she knew could assist the undercover and her husband for such purpose. At one point after communicating with her contact, who claimed that there was presently no jihad in Syria, Giampietro asked the undercover agent if she and her husband had considered traveling to Afghanistan since they were still fighting there.
Giampietro later provided the undercover agent with her contact’s information to assist her and her husband in their travel to Syria. When Giampietro provided the contact, she knew that HTS was a designated terrorist organization and believed that the undercover agent and her husband intended to travel to Syria to work under the direction and control of HTS and believed that the contact would substantially assist them in this effort. In addition, Giampietro intended that the undercover agent and her husband would provide funds to that person who in turn would provide funds to HTS, thereby providing material support to HTS disguised as a charitable contribution.
Giampietro utilized an end-to-end encrypted social media platform to communicate with the undercover and with her contact, and in some instances, utilized self-destruct timers within her communications so that those communications would automatically delete, without the possibility of recovery, after a specified time.
Giampietro faces up to 10 years in prison and a $250,000 fine when she is sentenced on May 6, 2022.
This case was investigated by the FBI and the Joint Terrorism Task Force. Assistant U.S. Attorneys Philip H. Wehby, Ben Schrader, and Kathryn Risinger of the Middle District of Tennessee, and Trial Attorney Jennifer Levy of the Department of Justice’s National Security Division, are prosecuting the case.
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Former Executive Vice President of T.J. Martell Foundation Charged with Embezzling over $3.7 MillionRead the Press Release
NASHVILLE – A criminal Information filed today charges Melissa Goodwin, 55, of Nashville, Tennessee, with wire fraud in relation to a fraudulent scheme in which she embezzled over $3.7 million from the T.J. Martell Foundation for Cancer Research, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
The T.J. Martell Foundation is the music industry’s leading foundation that funds innovative medical research focused on finding treatments and cures for cancer. The Foundation raises money for cancer research by soliciting in-kind donations from celebrities and then auctioning off those donations for a profit. Goodwin had been employed at the Foundation since 2005 and was the Executive Vice President and General Manager of the Foundation from 2018 until July 2020.
According to the charging document, between July 2018 and June 2020, Goodwin devised a scheme to defraud the T.J. Martell Foundation by purchasing approximately $3.96 million in tickets from online ticket vendors Ticketmaster, Stubhub, Primesport, and On-Location, using a Foundation credit card she had obtained in her own name. These tickets were not for a legitimate Foundation purpose and included tickets to musical concerts such as Lady Gaga and Celine Dion, and some were to sporting events, such as Super Bowl LIV, which was scheduled to take place in Miami, Florida, on February 2, 2020.
Goodwin provided these tickets to an individual in New York City who owned and operated a charity auction business. This business conducted auctions for clients, offering consignment items such as event tickets and sports memorabilia to the clients for use in their auctions. As part of the scheme, Goodwin led this individual to believe that she had acquired the tickets at no cost or at a discounted rate. Goodwin also used the Foundation’s credit card to purchase other items that were not for legitimate Foundation purposes, such as expensive and rare alcohols, plane tickets, and hotel stays. She then used the Foundation’s bank accounts to pay the credit card charges.
In order to conceal the ticket purchases, Goodwin provided falsified credit card statements and false expense reports to the Foundation’s accounting firm. Goodwin falsified the credit card statements by altering them to conceal the ticket purchases, as well as other expenses. She often replaced the name of the actual vendor with the name of a different vendor so that the charges appeared to be legitimate Foundation expenses. In total, Goodwin concealed over $3 million in fraudulent credit card expenses.
The Foundation’s accounting firm prepared the Foundation’s periodic financial statements based on these falsified credit card statements and expense reports. The accounting firm then emailed those statements to Goodwin, whose job it was to provide them to the Foundation’s CEO.
However, before providing them to the CEO, Goodwin falsified those financial statements by inflating the Foundation’s assets and lowering its liabilities to make the Foundation appear to be more liquid than it was at the time. These falsifications prevented the Foundation from detecting Goodwin’s fraudulent transactions.
In addition to falsifying the credit card statements and financial statements, Goodwin forged the signature of the Foundation’s CEO on six checks totaling $966,275.78 that were not approved by the Foundation.
If convicted, Goodwin faces up to 20 years in prison and a fine of up to $250,000.
The government also seeks the forfeiture of at least $3,765,606.77, which represents the proceeds of the alleged crime.
This case was investigated by the FBI. Assistant U.S. Attorney Kathryn W. Booth is prosecuting the case.
The charges contained in the Information are merely accusations. The defendant is presumed innocent until proven guilty in a court of law.
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Disruptive Passenger on Airline Facing Federal ChargesRead the Press Release
NASHVILLE – A criminal complaint unsealed today, charges a Lebanon, Tennessee woman with interfering with a flight crew following an incident on board a Spirit Airlines flight flying to Nashville on November 27, 2021, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Amanda Renee Henry, 43, surrendered to FBI agents in Nashville this morning and will appear before a U.S. Magistrate Judge later today.
“In accordance with the Attorney General’s directive, the prosecution of those who endanger the safety of airline passengers, flight crews, and flight attendants is a priority of this office,” said U.S. Attorney Wildasin. Those whose behavior disrupts or otherwise endangers the safety of persons on aircrafts should expect to face federal charges.”
According to the criminal complaint, Henry was a passenger on a flight from Fort Lauderdale, Florida, and became disruptive and appeared to be intoxicated. Passengers seated next to Henry requested to be moved to other seats due to Henry’s disruptive behavior. Since Henry was seated next to an emergency exit, flight attendants decided for the safety of everyone on board to move Henry to another seat. When they requested that Henry move, she refused and grabbed her carry-on bag and ran toward the front of the aircraft screaming, “I’m getting off this plane.” Another flight attendant blocked Henry from getting to the main cabin door and began to restrain her, at which time Henry began to kick and hit the flight attendant. Henry also assaulted the other flight attendant who assisted in trying to restrain her.
Once the flight attendants were able to restrain Henry, a passenger who was an off-duty firefighter assisted the crew by sitting with Henry and keeping her calm for the duration of the flight. When the plane landed at Nashville International Airport, Henry was arrested by the Nashville Airport Department of Public Safety and charged with public intoxication.
If convicted of the federal offense, Henry faces up to 20 years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Joshua Kurtzman.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Owner of Telemedicine Company Pleads Guilty to Health Care Fraud ConspiracyRead the Press Release
NASHVILLE – A Kentucky woman pleaded guilty yesterday in U.S. District Court in Nashville, to conspiracy to pay and receive health care kickbacks, announced Acting U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Elizabeth Turner, 34 of Glenview, Kentucky, was charged by criminal Information in November with conspiring with Fadel Alshalabi, the owner of Crestar Labs, LLC, based in Spring Hill, Tennessee, Melissa Lynn “Lisa” Chastain, the owner of marketing company Genetix, LLC, located in Belton, South Carolina, as well as other marketers and physicians, to offer, pay, solicit and receive illegal kickbacks and to defraud the Medicare and Medicaid Programs.
Between approximately February 2018 and ending around August 2019, Turner was the owner of telemedicine company Advanced Tele-Genetic Counseling (“ATGC”), which received kickback payments from marketers in exchange for providing signed doctors’ orders for Cancer genomic (“CGx”) testing. CGx testing uses DNA sequencing to detect mutations in genes that could indicate a higher risk of developing certain types of cancers in the future. CGx testing is not a method of diagnosing whether an individual presently has cancer. The marketers targeted Medicare and Medicaid patients through door-to-door marketing, at senior citizen 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 Crestar Labs for CGx testing in exchange for kickbacks paid by Crestar Labs. Crestar Labs billed Medicare and Medicaid for the tests.
Turner, through ATGC, paid kickbacks to doctors for signed orders for CGx tests, without regard for the medical necessity of the tests. Turner knew the doctors were not the patients’ treating physicians, were not treating the patients for any specific medical problem, symptom, illness, or diagnosis, and were not using the results in the care of the patients. Turner was aware that the doctors often never contacted the patients at all.
As a result of Turner’s involvement in the conspiracy, ATGC received approximately $234,730 in illegal kickback payments from marketing company co-conspirators, including Genetix, LLC. As a result of the conspiracy, Medicare and Medicaid paid laboratories, including Crestar Labs, LLC millions of dollars in reimbursements they were not entitled to receive because the CGx tests had been procured through the payment of kickbacks, and were otherwise ineligible for reimbursement.
Turner faces up to five years in prison when she is sentenced on May 2, 2022, and a fine of up to $250,000; restitution to the Medicare and Medicaid programs; and forfeiture of the ill-gotten proceeds.
This case was investigated by the U.S. Department of Health and Human Services - Office of the Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Sarah K. Bogni and Robert S. Levine are prosecuting the case.
United States v. Elizabeth Turner is docketed at Criminal Case No. 3:21-cr-00280.
United States v. Fadel Alshalabi, Edward Klapp, and Melissa Lynn Chastain is docketed at Criminal Case No. 3:21-cr-00171. The charges contained in that Superseding Indictment are merely accusations. The defendants are presumed innocent until proven guilty in a court of law.
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Texas Automobile Dealer and Former U.S. Military Soldiers and Purported Former IDF Member Charged in Kidnapping ConspiracyRead the Press Release
NASHVILLE – A federal indictment unsealed today charges three Texas men and one North Carolina man with a kidnapping conspiracy which resulted in the murder of two individuals on March 12, 2020, in Nashville, Tennessee.
In making the announcement, Acting U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee, Douglas M. Korneski, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation, and Metropolitan Nashville Police Chief John Drake commended the tremendous collaborative efforts of the agents, detectives, and prosecutors which led to the indictment.
The three-count indictment charges the following individuals with conspiracy to commit kidnapping, kidnapping resulting in death, and carrying, brandishing, and discharging a firearm during and in relation to a crime of violence:
Erik Charles Maund, 46, of Austin, Texas, a partner in Maund Automotive Group in Austin, Texas; Gilad Peled, 47, of Austin, Texas, who held himself out to be a former member of the Israeli Defense Forces and owner of Speartip Security in Austin, Texas; Bryon Brockway, 46, of Austin, Texas, a former active-duty United States Marine who previously served in Force Recon, a Special Operations Capable unit, and owner of Ink Force LLC, also a security company in Austin; and Adam Carey, 30, of Richlands, North Carolina, a former active duty United States Marine who had previously served in the Marine Corps’ Special Operations Group.
According to the indictment, Maund sometimes travelled to Nashville to visit a relative and in early February 2020, he emailed a woman (H.W.) with whom he had had a prior relationship, for the purpose of seeing her during his upcoming visit to Nashville on February 5-7.
After his visit to Nashville, on March 1, 2020, Maund received a series of text messages from an individual (W.L.) who had a personal romantic relationship with H.W. W.L. demanded payment from Maund and threatened to expose his relationship with H.W. if he did not receive it. Maund then enlisted the services of Peled, Brockway and Carey to assist with dealing with the threats to expose his relationship with H.W. and the extortion demands.
The indictment further alleges that on March 5, 2020, Maund withdrew $15,000 from his bank account and on that same day an “intelligence report” was prepared and provided to Peled by a relative of Brockway who worked for an internet-based security company.
A series of actions were then undertaken by Carey and others, including travelling from out of state to Nashville to surveil H.W. and W.L. and creating and using a Pinger account to attempt to communicate with H.W. and L.W. On March 9, 2020, Peled received a document entitled “Tennessee Sitrep,” which stated that Carey and others had surveilled H.W.; confirmed her address and vehicle; confirmed that W.L. had been staying at the same address; and advised that Carey and others would use everything at their disposal to stop the attempted extortion of Maund.
On March 11, 2020, Peled deposited $8,000 in cash into Speartip Security’s business account and $7,000 in cash into his personal bank account. The following day, Maund transferred $150,000, via wire, from his bank account to a bank account controlled by Peled. On that same day, Brockway and Carey, while armed with firearms, confronted H.W. and W.L. in the parking lot of H.W.’s apartment complex in Nashville and murdered W.L. by shooting him multiple times. They then kidnapped H.W. and drove her and the body of W.L. to a construction site on Old Hickory Boulevard in Nashville, where they murdered H.W. by shooting her several times. The bodies were then discarded at the construction site and within hours of the murders, the Pinger account used to communicate was deleted and a rental car rented by Brockway was returned.
Carey then drove Brockway to Memphis, Tennessee, and Brockway caught a flight to Austin, Texas. Carey then drove to Austin from Memphis.
The indictment also alleges that between March 11, 2020, and the present, Maund transferred in excess of $750,000, via wire, from his bank account to an account controlled by Peled, as payment to Peled, Brockway, and Carey for the kidnapping and murder of H.W. and W.L.
On Friday, FBI agents and Metro Nashville Police detectives orchestrated the arrests of all four individuals across several states. Erik Maund was arrested after a traffic stop near Austin, Texas; Gilad Peled was arrested at the airport in Austin, Texas; Bryon Brockway was arrested in San Diego, California; and Adam Carey was arrested at his home in North Carolina.
All will make an initial appearance before a U.S. Magistrate Judge in the District where they were arrested and will be returned to the Middle District of Tennessee at a later date for further proceedings.
If convicted, the defendants face up to life in prison.
In addition to the Memphis FBI Field Office and the Metropolitan Nashville Police Department, investigative and arrest assistance was provided by FBI Field Offices in Charlotte, North Carolina; San Diego, California; San Antonio, Texas; the FBI Critical Incident Response Group; the Naval Criminal Investigative Service; the Texas Department of Public Safety; the Austin, Texas Police Department; the Williamson County, Texas Sheriff’s Department; the Onslow County Sheriff’s Office and the New Hanover County Sheriff’s Office in North Carolina; and the Jacksonville, North Carolina Police Department. Assistant U.S. Attorney Robert McGuire of the Middle District of Tennessee is prosecuting the case with the assistance of Assistant U.S. Attorneys Bryan Stephany of the Eastern District of North Carolina; Matt Harding of the Western District of Texas; and Derek Ko of the Southern District of California.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
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Clay County Pharmacy Investigation Results in Criminal Charges Against Six More Individuals in Opioid Distribution and Health Care Fraud ConspiracyRead the Press Release
NASHVILLE – Charging documents unsealed yesterday charge six more individuals in relation to a massive opioid distribution and health care fraud conspiracy orchestrated from pharmacies in Celina, Tennessee, announced Acting U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
A seven-count indictment returned on November 15, 2021, charges Thomas K. Weir, 61, majority owner of Dale Hollow Pharmacy and Xpress Pharmacy in Celina, and William L. Donaldson, 61, former owner and Pharmacist-in-Charge of Dale Hollow Pharmacy (then known as Donaldson Pharmacy), both of Celina, Tenn.; Charles R. Oakley, aka Bobby Oakley, 69, of Cookeville, Tenn., co-owner of Dale Hollow Pharmacy; and Pamela Spivey, 50, of Hilham, Tenn., co-owner of Xpress Pharmacy, with conspiracy to distribute and dispense controlled substances and conspiracy to commit health care fraud. The indictment also charges Weir, Donaldson, and Oakley with conspiracy to defraud the United States and commit an offense through the payment of illegal kickbacks, and Weir, Oakley and Spivey with health care fraud and aiding and abetting health care fraud.
All were arrested yesterday by federal, and state law enforcement agents and appeared before a U.S. Magistrate Judge in Nashville.
In addition, a superseding information, filed on December 15, 2020, and unsealed yesterday, charges former Pharmacist-in-Charge of Dale Hollow Pharmacy John M. Polston, 60, of Tompkinsville, Kentucky, with conspiracy to distribute and dispense controlled substances, 22 counts of unlawful distribution of controlled substances, and conspiracy to defraud the United States and commit an offense through the payment of illegal kickbacks. A criminal information filed on May 6, 2021, and unsealed yesterday, charges Michael L. Griffith, 37, of Mount Juliet, Tenn., the former Pharmacist-in-Charge of Xpress Pharmacy, with conspiracy to distribute and dispense controlled substances, health care fraud, and aiding and abetting health care fraud.
Also unsealed yesterday are two plea agreements. On March 23, 2021, John Polston pleaded guilty to conspiracy to distribute and dispense controlled substances, illegal distribution of controlled substances, and conspiracy to defraud the United States and commit an offense through the payment of illegal kickbacks, in violation of the Anti-Kickback Statute. He is currently awaiting sentencing. On August 26, 2021, Michael Griffith pleaded guilty to conspiracy to distribute and dispense controlled substances and to two counts of health care fraud. Griffith is also awaiting sentencing.
According to the charging documents, the defendants conspired with or otherwise aided and abetted one or more co-defendants in illegally distributing and dispensing controlled substances, including oxycodone, hydrocodone, morphine, buprenorphine, alprazolam, and other Schedule II, III, and IV controlled substances, outside the usual course of professional practice and for no legitimate medical purpose, for the purpose of unlawfully enriching and benefitting themselves. The conspiracy was carried out by a variety of means, including dispensing prescriptions for controlled substances to patients despite obvious signs of abuse or diversion by the patients and other indications that the prescriptions were not for legitimate medical purposes.
According to the charging documents, Weir, Oakley, Donaldson, and others, conspired to defraud the United States and violate the Anti-Kickback Statute by offering and paying kickbacks and bribes to Donaldson for arranging the referral of patients, including Medicare and Medicaid beneficiaries, to Dale Hollow Pharmacy and paying Donaldson at least $50,000 for the recruitment of patients; paying patient’s insurance co-payments and $100.00 in cash, and developing and providing a cash coupon called “Monkey Bucks” to patients to induce patients to fill expensive prescriptions at Dale Hollow Pharmacy; and submitting false claims to and obtaining reimbursement from Medicare and Medicaid. For example, during the course of the conspiracy, Medicare paid Dale Hollow Pharmacy $237,558 in reimbursement for a single patient’s prescriptions procured through routine cash incentive payments to the patient. During the course of the conspiracy, Medicare Part D and TennCare, Tennessee’s Medicaid program, paid a total of $7.4 million in reimbursements to Dale Hollow Pharmacy for patient prescriptions procured through kickbacks and bribes.
The charging documents also allege that in 2015, Weir purchased a controlling interest in Xpress Pharmacy, a pharmacy located approximately 200 yards from Dale Hollow Pharmacy. In-between Dale Hollow Pharmacy and Xpress Pharmacy was another competing retail pharmacy. Weir, with co-owner Pam Spivey and Pharmacist-in-Charge Michael Griffith, conspired to distribute and dispense opioids and other controlled substances and developed a plan to increase profits. Marketing flyers were then developed, advertising that Xpress Pharmacy dispensed buprenorphine (Subutex), a controlled substance that is sought after by those who abuse opioids.
Griffith and Spivey then purchased trays of cookies and delivered the cookies and marketing flyers to medical clinics around the State of Tennessee whose doctors wrote prescriptions for Subutex. Many of these clinics were hours away from Xpress Pharmacy. Following the marketing campaign, patients drove hundreds of miles to Xpress Pharmacy to fill prescriptions for Subutex, sometimes arriving together in car loads. Weir purchased Subutex through Dale Hollow Pharmacy and delivered it through co-conspirators in tote bags to the neighboring Xpress Pharmacy.
In the third quarter of 2015, before Weir was the majority owner of Xpress Pharmacy, Xpress Pharmacy dispensed approximately 420 doses of Subutex. By the end of the first quarter of 2016, after Weir was majority owner, that number was over 14,000 doses. By the second quarter of 2017, it was over 34,000 doses.
In May and June of 2016, the Drug Enforcement Administration (DEA) inspected Dale Hollow Pharmacy and in 2017, Weir, Oakley, and Polston signed a Memorandum of Agreement with the DEA related to violations of the regulations governing the dispensing of controlled substances, including Subutex. Despite the agreement, the dispensing of Subutex continued to increase. Weir also set mandates on the number of Subutex pills or doses to fill in a month, routinely checked to see how much had been dispensed, and instructed the pharmacy employees, to never run out of Subutex.
Dale Hollow Pharmacy and Xpress Pharmacy also submitted false and fraudulent claims to Medicare Part D plans, and to TennCare, for controlled substances dispensed to Medicare and Medicaid beneficiaries that were medically unnecessary or otherwise ineligible for reimbursement.
In February 2019, the Justice Department filed a civil complaint against Dale Hollow Pharmacy and Xpress Pharmacy, including the owner, Thomas Weir and pharmacists John Polston, Michael Griffith, and others. The government sought and received a Temporary Restraining Order and a Preliminary Injunction, which remains in place, and which prevented the pharmacies and pharmacists from dispensing controlled substances.
The government is also seeking civil monetary penalties and treble damages for civil violations of the Controlled Substances Act and the False Claims Act.
In the criminal case, the government also seeks the forfeiture of any property used or intended to be used to commit or facilitate the commission of each offense.
The offenses charged carry between 5-20 years in prison for each count, upon conviction, and fines between $250,000-$1 million.
The charges are merely accusations. All defendants are presumed innocent until proven guilty in a court of law.
This case was investigated by the DEA; the U.S. Department of Health & Human Services-Office of Inspector General; and the Tennessee Bureau of Investigation; with the assistance of the Clay County Sheriff’s Office. Assistant U.S. Attorneys Sarah K. Bogni and Amanda J. Klopf are prosecuting the criminal cases and Assistant U.S. Attorney Ellen Bowden-McIntyre is handling the civil investigation and litigation. The criminal investigation was supported by resources provided by the Department of Justice, Fraud Section, Health Care Fraud, Appalachian Regional Prescription Opioid Strike Force. The civil investigation was assisted by the Department of Justice, Consumer Protection Branch.
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Loretto Woman Indicted in Embezzlement Scheme from Nashville BusinessRead the Press Release
NASHVILLE – A federal indictment unsealed yesterday charges a Loretto, Tennessee woman with three counts of wire fraud and one count of aggravated identity theft, related to an embezzlement scheme which exceeded $200,000, announced Acting U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Kimberly Hodge, aka Kimberly Hughen, 51, of Loretto, Tennessee, surrendered to FBI agents yesterday.
According to the indictment, Hodge was the bookkeeper for Integrity Architectural Millwork (Integrity) and was responsible for, among other duties, making Quickbooks entries and recording payments to vendors. Between February 2019 and April 2020, Hodge fraudulently made deposits into her personal bank account from the operating account of Integrity and caused fraudulent payments to be made to her account from Integrity’s credit card.
The indictment also alleges that in February 2020, Hodge forged the name and signature of the owner of Integrity to apply for a loan from a financial institution in the amount of $150,000 to replenish the funds in the Integrity operating account to conceal the fraud. In the loan application, Hodge provided the owner’s personal information, including a photo of the owner’s driver’s license.
In April 2020, Integrity applied for and received a loan in the amount of $127,447 from the Payroll Protection Program (PPP) of the Small Business Administration, under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). These funds were intended to be used for employee salaries and business expenses of Integrity during the COVID-19 pandemic. The indictment alleges that Hodge also transferred funds from the PPP account to the Integrity operating account to conceal her fraud. In May 2020, Integrity discovered the fraud and terminated Hodge’s employment, after which she continued to attempt to make fraudulent purchases using Integrity’s credit card.
The indictment also contains a forfeiture allegation in which the government seeks a money judgement of at least $209,443.63, which represents the proceeds of the crimes committed.
If convicted, Hodge faces a mandatory minimum of two years in prison for the aggravated identity theft charge and up to 20 years in prison for each count of wire fraud, and a fine of $250,000.
This case was investigated by the FBI and the Metropolitan Nashville Police Department Fraud Division. Assistant U.S. Attorney Kathryn W. Booth 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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Clarksville Restaurant Owner Sentenced to Federal Prison for Alien Harboring and Tax Fraud ConspiracyRead the Press Release
NASHVILLE – Quanwei Shi, 31, of Clarksville, Tennessee, was sentenced Friday to 20 months in federal prison for conspiracy to harbor illegal aliens; harboring illegal aliens; money laundering; tax evasion; and employment tax fraud, announced Acting U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Shi, the majority owner of the New China Buffett & Grill (NCBG) in Clarksville, and co-owner Chongqiang Chen, 30, also of Clarksville, were arrested in April 2020, after a 14-count indictment charged them in a scheme to harbor undocumented workers and to defeat the tax laws of the United States. Shi pleaded guilty in March.
According to court documents, between 2017 and April 2019, Shi conspired to conceal and harbor illegal aliens from China and Guatemala, profiting from their employment at NCBG. The undocumented workers were not required to complete any forms related to their immigration status and were paid in cash, outside the regular payroll system. The undocumented workers lived with Shi at his residence on D Street in Clarksville and were transported to NCBG and back daily. Shi assigned the workers to work in the kitchen where they would not be able to interact with the patrons of the restaurant.
In addition to harboring the undocumented workers, Shi underreported gross receipts on NCBG’s corporate tax returns for tax years 2017 through 2019, and failed to collect, account for, and pay over employment taxes for an overall tax loss of $440,941.
U.S. District Judge Eli J. Richardson also ordered the forfeiture of Shi’s house in Clarksville and two vehicles and ordered restitution in the amount of $417,149.
Chongqiang Chen pleaded guilty in July and will be sentenced on February 25, 2022.
This case was investigated by Homeland Security Investigations; the IRS-Criminal Investigation; the Diplomatic Security Service of the U.S. Department of State; the Tennessee Bureau of Investigation; the Tennessee Bureau of Workers Compensation; the Clarksville Police Department; and the Montgomery County Sheriff’s Office. Assistant U.S. Attorneys Sara Beth Myers and Robert Levine are prosecuting the case.
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Teach Them Diligently Resolves ADA Complaint by Providing Interpreting Services for the Deaf at Its ConventionsRead the Press Release
NASHVILLE – In response to a civil rights complaint received by this Office, Teach Them Diligently (TTD), a Christian-based home school resource community of Greenville, South Carolina, addressed the interpreting needs of deaf attendees at its Christian homeschool convention in Nashville, announced Acting U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee. TTD also agreed to address requests for interpreting services and other accommodations at future conferences in accordance with the Americans with Disabilities Act (ADA).
“We appreciate the willingness of Teach Them Diligently to resolve these issues swiftly and address the greater needs of all individuals with disabilities who may utilize TTD’s resources in the future,” said Acting U.S. Attorney Wildasin. “We welcome partnering with national and local civil rights organizations to ensure that both the citizens of, and visitors to, the Middle District of Tennessee have equal access to all events being offered.”
On March 11, 2021, the United States notified TTD that it was investigating a complaint from the Civil Rights Education and Enforcement Center (CREEC) that TTD had refused to confirm that it would be providing American Sign Language (ASL) interpreting services to three individuals attending a future TTD conference at the Gaylord Opryland Hotel in Nashville, which may be in violation of Title III of the ADA. TTD responded to the United States’ request and agreed to provide the interpreting services at the convention. Thereafter, the complainants confirmed that interpreters were provided.
Following the Nashville TTD convention, TTD also agreed to make certain changes to its website so that attendees of future conferences, not just in Tennessee but throughout the United States, could submit requests for a reasonable accommodation needed in accordance with the ADA, which was not limited to interpreting needs. After the United States confirmed that TTD implemented changes to its website, the United States and TTD entered into a Letter of Resolution on October 4, 2021, which confirmed that TTD will address the needs of individuals covered by the ADA at its future conventions.
General information about the ADA is available through the ADA information line at 800-514-0301 (voice), 800-514-0383 (TTY), or on the ADA homepage at www.ada.gov. If you believe your civil rights have been violated, including ADA rights, you may submit a report to the Department of Justice at https://civilrights.justice.gov/report/ .
The Letter of Resolution does not constitute a finding by the United States that TTD is in full compliance with the ADA, nor does it constitute an admission by TTD of fault or noncompliance with the ADA.
Assistant U.S. Attorney Kara F. Sweet represented the United States in the matter.
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Gangster Disciples Enforcer and Hitman Convicted of RICO Murder, Killing Witness, and Other Violent CrimesRead the Press Release
A federal jury convicted a Tennessee man today on Racketeer Influenced and Corrupt Organizations Act (RICO) charges, including murder in aid of racketeering activity, stemming from his participation in a violent, criminal racketeering enterprise known as the Gangster Disciples.
Brandon Durell Hardison, aka Creep, and aka Creeper da Reeper, 35, of Nashville, was convicted of RICO conspiracy, murder in aid of racketeering, causing death through the use of a firearm, murder of a witness to prevent communication to a law enforcement official regarding a federal offense, and assault resulting in serious bodily injury in aid of racketeering.
“Local, state, and federal law enforcement partners worked for nearly a decade with federal prosecutors to build this case against the Gangster Disciples, and this defendant in particular,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Today’s successful outcome is a testament to the hard work of our partners, and the dedication they have to the safety of our communities.”
“Today’s verdict marks the end of a decade of violence and lawlessness inflicted upon our communities by ruthless gang members,” said Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. “This investigation resulted in federal charges against 32 gang members and associates, including 12 in this RICO indictment. No longer will they be in a position to bring such violent and destructive behavior upon our communities. We look forward to the sentencing phase of this case so that we can be assured that Mr. Hardison never has the opportunity to commit another crime. I commend our law enforcement partners and prosecution team for staying the course and bringing justice on behalf of our citizens.”
“This conviction removed one of Clarksville’s most violent criminals from the streets,” said Special Agent in Charge Mickey French of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division. “Though we were able to disrupt the activities of this violent organization, our work is not done. In order to keep our communities safe, ATF and our law enforcement partners remain committed to pursuing these violent gangs that engage in dangerous and illegal activities.”
Hardison is last of 12 defendants indicted by a grand jury in this investigation against the Gangster Disciples. Five defendants, all Gangster Disciples’ members, were previously convicted after trial in April 2019, of RICO conspiracy, drug trafficking, and other offenses:
- Maurice Duncan Burks, aka Reesy, 35, of Hopkinsville, Ky.
- Marcus Termaine Darden, aka MD and aka Tuff, 43, of Guthrie, Ky.
- Derrick Lamar Kilgore, aka Smut, 37, of Clarksville, Tenn.
- DeCarlos Titington, aka Los, 46, of Clarksville, Tenn.
- Elance Justin Lucas, aka Mac Luke, 32, of Clarksville, Tenn.
The other indicted defendants previously pleaded guilty to related offenses:
Xavier Raphael Jenkins, aka Xa, 33, of Clarksville, Tenn.; assault resulting in serious bodily injury in aid or racketeering;
Lamar Andre Warfield, aka Jug, 32, of Guthrie, Ky.; RICO conspiracy, conspiracy to possess with intent to distribute controlled substances, conspiracy to commit and attempted murder in aid of racketeering, assault with a dangerous weapon and causing serious bodily injury in aid of racketeering, and use, carry, possession of a firearm during a crime of violence and causing death through the use of a firearm;
Lawrence Mitchell, aka Chop, 37, of Clarksville, Tenn.; RICO conspiracy, conspiracy to possess with intent to distribute controlled substances, conspiracy to commit and attempted murder in aid of racketeering, assault with a dangerous weapon and causing serious bodily injury in aid of racketeering, and use, carry, and possession of a firearm during a crime of violence;
Rex Andrew Whitlock, aka Stackhouse, 36, of Clarksville, Tenn.; RICO conspiracy, conspiracy to distribute controlled substances, and causing death through the use of a firearm;
Lorenzo Cortez Brown, aka Zo, 35, of Murfreesboro, Tenn.; RICO conspiracy, conspiracy to possess with the intent to distribute controlled substances, distribution of controlled substances within 1000 feet of a school;
James Anderson Luke, aka New York, 34, of Clarksville, Tenn.; RICO conspiracy and conspiracy to possess with the intent to distribute controlled substances.
According to court documents and evidence presented at the three-week trial, Hardison conspired to participate in the affairs of the Gangster Disciples, a violent criminal gang founded in Chicago and now active in numerous states across the United States, including Tennessee. The Gangster Disciples are a highly organized enterprise, operating under the national leadership of a corporate board-style group that was responsible for gang decisions at a national level, and the state and regional leadership of “governors” and other subordinate gang members, who were responsible for the gang’s activities in specific geographic regions.
Operating from a set called the “Clarksville deck,” Hardison committed various crimes on behalf of the gang, including shootings, attempted murders, and murders.
Evidence presented at trial showed that on Jan. 6, 2012, Hardison murdered a Gangster Disciples’ associate for failing to repay a drug debt. He then shot and killed the associate’s girlfriend, who was a witness to the murder, to prevent her from talking to law enforcement. Hardison enlisted other Gangster Disciples members to dispose of the murder weapon. Following these murders, Hardison was rewarded by being appointed to various positions in the Gangster Disciples, including regional chief enforcer and a member of their notorious hitman group called the “Blackout Squad.”
Hardison and several co-conspirators plotted on several occasions to assault members of a rival gang. On Sept. 26, 2012, Hardison participated in a shooting of an occupied residence belonging to a member of the Bloods gang in Clarksville, Tennessee. Additionally, on Nov. 3, 2012, Hardison and others shot and killed a member of the Bloods gang inside a nightclub in Clarksville, Tennessee.
In addition to Hardison’s crimes, evidence was presented that other Gangster Disciples members engaged in drug trafficking, intimidated witnesses to prevent them from cooperating with law enforcement, protected the gang’s drug territory, financed the enterprise, and violently enforced gang rules.
At sentencing, Hardison faces a mandatory minimum of life in prison for murder in aid of racketeering, a maximum sentence of life in prison for the offenses of racketeering conspiracy, causing death through the use of a firearm, and killing a witness to prevent communication to a law enforcement; He faces 20 years’ incarceration for the assault causing serious bodily injury in aid of racketeering offense.
The ATF; Tennessee Bureau of Investigation, Metropolitan Nashville Police Department; Montgomery County Sheriff’s Office; and Clarksville Police Department investigated the case.
Trial Attorney Gerald A. A. Collins of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Benjamin Schrader of the U.S. Attorney’s Office for the Middle District of Tennessee prosecuted the case.
Gangster Disciples Enforcer and Hitman Convicted of RICO Murder, Killing Witness, and Other Violent CrimesRead the Press Release
NASHVILLE – Following a two-week jury trial in U.S. District Court, a federal jury today convicted Brandon Durell Hardison, aka Creep, aka Creeper da Reeper, a member of the Gangster Disciples, of multiple counts relating to a racketeering conspiracy which plagued the Clarksville, Tennessee area with violence and murders for more than a decade.
Hardison, 35, of Nashville, Tennessee, was convicted of Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy, murder in aid of racketeering, causing death through the use of a firearm, killing to prevent a witness communication to a law enforcement official regarding a federal offense, and assault resulting in serious bodily injury in aid of racketeering.
“Today’s verdict marks the end of a decade of violence and lawlessness inflicted upon our communities by ruthless gang members,” said Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. “This investigation resulted in federal charges against 32 gang members and associates, including 12 in this RICO indictment. No longer will they be in a position to bring such violent and destructive behavior upon our communities. We look forward to the sentencing phase of this case so that we can be assured that Mr. Hardison never has the opportunity to commit another crime. I commend our law enforcement partners and prosecution team for staying the course and bringing justice on behalf of our citizens.”
“This case illustrates the value of federal prosecution, where we have the ability to use legal tools such as the RICO statute to go after gangs destroying communities through violent crimes and drug trafficking.” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Local, state, and federal law enforcement partners worked for nearly a decade with federal prosecutors to build this case against the Gangster Disciples, and this defendant in particular. Today’s successful outcome is a testament to the hard work of our partners, and the dedication they have to the safety of our communities.”
“This conviction removed one of Clarksville’s most violent criminals from the streets,” said Special Agent in Charge Mickey French of the ATF. “Though we were able to disrupt the activities of this violent organization, our work is not done. In order to keep our communities safe, ATF and our law enforcement partners remain committed to pursuing these violent gangs that engage in dangerous and illegal activities.”
Hardison is the last to proceed to trial of 12 defendants indicted by a grand jury in this investigation against the Gangster Disciples. Five defendants, all Gangster Disciples members, were previously convicted after trial in April 2019, of RICO conspiracy, drug trafficking, and other offenses. They are:
Maurice Duncan Burks, aka Reesy, 35, of Hopkinsville, Kentucky;
Marcus Termaine Darden, aka MD aka Tuff, 43, of Guthrie, Kentucky;
Derrick Lamar Kilgore, aka Smut, 37, of Clarksville, Tenn.;
DeCarlos Titington, aka Los, 46, of Clarksville, Tenn.; and
Elance Justin Lucas, aka Mac Luke, 32, of Clarksville, Tenn.
The other defendants previously pleaded guilty to related offenses, including:
Xavier Raphael Jenkins, aka Xa, 33, of Clarksville, Tenn.; (assault resulting in serious bodily injury in aid of racketeering);
Lamar Andre Warfield, aka Jug, 32, of Guthrie, Kentucky; (RICO conspiracy, conspiracy to distribute and possess with intent to distribute controlled substances, conspiracy to commit and attempted murder in aid of racketeering, assault with a dangerous weapon and causing serious bodily injury in aid of racketeering, and use, carry, possession of a firearm during a crime of violence and causing death through the use of a firearm);
Lawrence Mitchell, aka Chop, 37, of Clarksville, Tenn.; (RICO conspiracy, conspiracy to distribute and possess with intent to distribute controlled substances, conspiracy to commit and attempted murder in aid of racketeering, assault with a dangerous weapon and causing serious bodily injury in aid of racketeering, and use, carry, possession of a firearm during a crime of violence);
Rex Andrew Whitlock, aka Stackhouse, 36, of Clarksville, Tenn.; (RICO conspiracy, conspiracy to distribute controlled substances, and causing death through the use of a firearm);
Lorenzo Cortez Brown, aka Zo, 35, of Murfreesboro, Tenn.; (RICO conspiracy, conspiracy to distribute and possess with the intent to distribute controlled substances, distribution and possession with intent to distribute controlled substances within 1000 feet of a school); and
James Anderson Luke, aka New York, 34, of Clarksville, Tenn. (RICO conspiracy and conspiracy to distribute and possess with the intent to distribute controlled substances).
All have either been sentenced or are facing lengthy prison terms when sentenced.
According to court documents and evidence presented at trial, Hardison conspired to participate in the affairs of the Gangster Disciples, a violent criminal gang founded in Chicago and now active in numerous states across the United States, including Tennessee. Referred to as the “Brothers of the Struggle,” the Gangster Disciples are a highly organized enterprise, operating under the leadership of a corporate board-style group, that was responsible for gang decisions at a national level, and the state and regional leadership of “governors” and other subordinate gang members, who were responsible for the gang’s activities in specific geographic regions.
Operating from a set called the “Clarksville deck,” Hardison committed numerous crimes on behalf of the gang, including shootings, attempted murders, and murders.
Evidence presented at trial showed that on January 6, 2012, Hardison murdered a Gangster Disciples associate for failing to repay a drug debt. He then shot and killed the associate’s girlfriend, who was a witness to the murder, to prevent her from talking to law enforcement. Hardison enlisted other Gangster Disciples members to dispose of the murder weapon. Following these murders, Hardison increased his status in the Gangster Disciples by being appointed to various positions of authority, including as their regional chief enforcer and a member of their notorious hitman group called the “Blackout Squad.”
Hardison and his co-conspirators planned and carried out shootings and assaults targeting members of the rival Bloods gang. For example, on September 26, 2012, Hardison participated in a shooting of an occupied residence belonging to a member of the Bloods gang in Clarksville. Additionally, on November 3, 2012, Hardison and others assaulted, and co-conspirator Burks shot and killed, a member of the Bloods gang inside a nightclub in Clarksville.
In addition to Hardison’s crimes, evidence was presented that other Gangster Disciples members engaged in drug trafficking, intimidated witnesses to prevent them from cooperating with law enforcement, protected the gang’s drug territory, financed the enterprise, and violently enforced gang rules.
Hardison faces a maximum sentence of life in prison for the offenses of racketeering conspiracy, causing death through the use of a firearm, and killing to prevent a witness communication to a law enforcement official regarding a federal offense. He faces a mandatory minimum of life in prison for murder in aid of racketeering, and an additional 20 years’ incarceration for the assault causing serious bodily injury in aid of racketeering offense.
Sentencing for Hardison will be scheduled at a later date.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Tennessee Bureau of Investigation; the Metropolitan Nashville Police Department; the Montgomery County Sheriff’s Office; the Clarksville Police Department; the Rutherford County Sheriff’s Office; the Murfreesboro Police Department; the Gallatin Police Department; the Kentucky State Police; the 19th Judicial District Drug Task Force; and the Hopkinsville, Kentucky Police Department participated in this decade-long investigation.
Assistant U.S. Attorney Ben Schrader of the Middle District of Tennessee and Trial Attorney Gerald A. A. Collins of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.
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Former Operations and Marketing Director at Lifeway Credit Union Charged with FraudRead the Press Release
NASHVILLE – A criminal Information was filed today, charging Monica Jackson, 42, of Murfreesboro, Tennessee, with embezzling over $242,000 from Lifeway Credit Union, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
According to the charging document, Jackson was formerly the Operations and Marketing Director at Lifeway Credit Union in Nashville. In that role, she was part of the management team, and she oversaw the credit union’s operating activities, including lending decisions and the decision to order cash. She also had access to Lifeway’s cash vault.
The Information alleges that between October 2016 and February 2021, Jackson embezzled approximately $242,156 from the credit union using a variety of methods, including by stealing cash out of the vault. Jackson concealed these cash thefts from the vault, totaling more than $47,000, by placing small bills, such as one-dollar bills, in “bands” of larger bills, such as $20 or $50 bills, to make it appear as though each “band” of larger bills was full. Another method employed by Jackson was to open lines of credit in the names of family members and then transfer the funds to accounts she controlled. Jackson took approximately $167,312 by this method.
Finally, the charging document alleges that Jackson made fraudulent transfers totaling $27,435 to herself from the account of a deceased credit union member. Jackson used her administrative authority to lock access to the accounts she was using to commit the fraud so that other bank employees could not see those accounts.
The United States also seeks a forfeiture judgement of $242,156.00 which represents the proceeds of the crime.
If convicted, Jackson faces up to 30 years in prison and a fine of up to $1 million.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn W. Booth is prosecuting the case.
The charges contained in the Information are merely accusations. The defendant is presumed innocent until proven guilty in a court of law.
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Tennessee State Senator and Nashville Social Club Owner Indicted for Alleged Campaign Finance SchemeRead the Press Release
A federal grand jury in Nashville, Tennessee, returned an indictment Friday charging Tennessee State Senator Brian Kelsey and a Nashville social club owner with violating campaign finance laws as part of an alleged scheme to benefit Kelsey’s 2016 campaign for U.S. Congress.
According to court documents, Kelsey, 43, of Germantown, and Joshua Smith, 44, of Nashville, conspired to and did secretly and unlawfully funnel what is commonly referred to as “soft money” from Kelsey’s Tennessee State Senate campaign committee to his authorized federal campaign committee. Kelsey and others also caused a national political organization to make illegal, excessive contributions to Kelsey’s federal campaign committee by secretly coordinating with the organization on advertisements supporting Kelsey’s federal candidacy and to cause false reports of contributions and expenditures to be filed with the Federal Election Commission (FEC).
The indictment alleges that Kelsey, Smith, and others orchestrated the concealed movement of $91,000 to a national political organization for the purpose of funding advertisements that urged voters to support Kelsey in the August 2016 primary election, and that the conspirators caused the political organization to make $80,000 worth of contributions to Kelsey’s federal campaign committee in the form of coordinated expenditures.
Kelsey and Smith are charged with conspiracy to defraud the FEC, illegally transferring “soft money” as a federal candidate and his agent, and illegally transferring “soft money” as a state officeholder and his agent. Kelsey is also charged with making excessive contributions to a federal campaign and accepting excessive contributions. The defendants are scheduled to make their initial court appearances on Nov. 5 before U.S. Magistrate Judge Jeffery S. Frensley of the U.S. District Court for the Middle District of Tennessee. If convicted, they face a maximum penalty of five years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and Acting U.S. Attorneys Mary Jane Stewart for the Middle District of Tennessee and Joseph C. Murphy Jr. for the Western District of Tennessee made the announcement.
The FBI is investigating the case.
Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Amanda Klopf of the Middle District of Tennessee and David Pritchard of Western District of Tennessee are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tennessee State Senator Brian Kelsey and Nashville Social Club Owner Indicted in Campaign Finance ConspiracyRead the Press Release
NASHVILLE – A federal grand jury in Nashville Friday, returned a five-count indictment charging Tennessee State Senator Brian Kelsey, 43, of Germantown, Tennessee, and Nashville social club owner Joshua Smith, 44, with violating multiple campaign finance laws as part of a conspiracy to benefit Kelsey’s 2016 campaign for U.S. Congress.
Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee, Assistant Attorney General Kenneth A. Polite, Jr. of the Department of Justice Criminal Division, and Acting U.S. Attorney for the Western District of Tennessee Joseph C. Murphy, Jr. made the announcement.
According to the indictment, beginning in February 2016 and continuing through mid-October 2016, Kelsey and Smith conspired with others to violate federal campaign finance laws to secretly and unlawfully funnel “soft money” (funds not subject to the limitations, prohibitions, and reporting requirements of the Federal Election Campaign Act [FECA]) from Kelsey’s Tennessee State Senate campaign committee to his authorized federal campaign committee. Kelsey and others also caused a national political organization to make illegal, excessive contributions to Kelsey’s federal campaign committee by secretly coordinating with the organization on advertisements supporting Kelsey’s federal candidacy and to cause false reports of contributions and expenditures to be filed with the Federal Election Commission.
In 2016, the FECA limited campaign contributions to $2,700 from any one individual or organization to any one candidate in each election.
The indictment alleges that Kelsey, Smith, and other unindicted coconspirators orchestrated the concealed movement of $91,000 to a national political organization for the purpose of funding advertisements that urged voters to support Kelsey in the August 2016 primary election, and that the conspirators caused the political organization to make $80,000 worth of contributions to Kelsey’s federal campaign committee in the form of coordinated expenditures. The indictment alleges other meetings and communications between the conspirators, resulting in the illegal transfers, contributions, and expenditures associated with Kelsey’s federal campaign.
Kelsey and Smith are charged with conspiracy, illegally transferring “soft money” as a federal candidate and his agent, and illegally transferring “soft money” as a state officeholder and his agent. Kelsey is also charged with making excessive contributions to a federal campaign and accepting excessive contributions. If convicted, they face up to 5 years in prison and a $250,000 fine on each count.
A summons has been issued by the Court and Kelsey and Smith are directed to surrender to U.S. Marshals in the Middle District of Tennessee on or before November 5, 2021, at 10 a.m. and both will make an initial appearance before a U.S. Magistrate Judge.
This case was investigated by the FBI. Assistant U.S. Attorneys Amanda Klopf of the Middle District of Tennessee and David Pritchard of the Western District of Tennessee and Trial Attorney John Taddei of the Criminal Division’s Public Integrity Section of the Department of Justice are 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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Justice Department Announces New Initiative to Combat RedliningRead the Press Release
NASHVILLE – The U.S. Attorney’s Office for the Middle District of Tennessee announced its partnership with the Justice Department’s Civil Rights Division as it launches the department’s new Combatting Redlining Initiative.
Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new initiative represents the department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act.
“Lending discrimination runs counter to fundamental promises of our economic system. When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated,” said Attorney General Garland. “Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities. We will spare no resource to ensure that federal fair lending laws are vigorously enforced and that financial institutions provide equal opportunity for every American to obtain credit.”
“When Redlining is employed by lending institutions, communities of color are prevented from recognizing the American dream of home ownership and become stagnated in their present socio-economic status,” said Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. We are pleased to partner with the Civil Rights Division to address this illegal practice and will pursue the appropriate remedy when such practices are identified.”
Redlining, a practice institutionalized by the federal government during the New Deal era and implemented then and now by private lenders, has had a lasting negative impact. For American families, homeownership remains the principal means of building wealth, and the deprivation of investment in and access to mortgage lending services for communities of color have contributed to families of color persistently lagging behind in homeownership rates and net worth compared to white families. The gap in homeownership rates between white and Black families is larger today than it was in 1960, before the passage of the Fair Housing Act of 1968.
This initiative, which will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney’s Offices, will build on the longstanding work by the Division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live. The initiative will:
- Utilize U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.
- Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services but engage in mortgage lending and now make the majority of mortgages in this country.
- Strengthen our partnership with financial regulatory agencies such as to ensure the identification and referrals of fair lending violations to the Department of Justice.
- Increase coordination with State Attorneys General on potential fair lending violations.
Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
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Nashville Man Pleads Guilty to Civil Rights Violations for Series of Church ArsonsRead the Press Release
NASHVILLE – A Nashville, Tennessee man pleaded guilty today to civil rights violations for a series of church arsons, the Justice Department announced.
Alan Douglas Fox, 28, pleaded guilty to all counts of an information charging him with setting fire to the Crievewood United Methodist Church on June 17, 2019; the Crievewood Baptist Church on June 25, 2019; the Saint Ignatius of Antioch Catholic Church on June 25, 2019; and the Priest Lake Community Baptist Church on June 26, 2019; and with carrying and using a firearm during the arson of the Crievewood Baptist Church. During the plea hearing, Fox admitted to intentionally setting the fires because of the religious character of the four churches.
“The U.S. Attorney’s Office will always pursue those, who by their malicious actions, infringe upon our freedom of religion,” said Acting U.S. Attorney Mary Jane Stewart of the Middle District of Tennessee. “I commend our law enforcement partners and our prosecution team for bringing this individual to justice.”
“The defendant in this case set fire to four Christian churches, causing fear and anguish to church members and their denominations. The freedom to practice the religion we choose, without discrimination or danger, is a fundamental civil right in our nation and a hallmark of our democracy,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to prosecute, to the fullest extent of the law, those who target and harm houses of worship because of bigotry and prejudice.”
U.S. District Judge Eli J. Richardson of the Middle District of Tennessee scheduled sentencing for February 11, 2022. By the terms of the plea, Fox faces up to 20 years in prison for each fire and a consecutive five-year sentence for the firearms violation.
The FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department, and the Nashville Fire Department investigated the case. Assistant U.S. Attorney Sara Beth Myers and Trial Attorney Kyle Boynton of the Department’s Civil Rights Division are prosecuting it.
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Rollin' 40s Street Gang Member Sentenced to 20 Years in Prison for Crimes Committed While on ParoleRead the Press Release
NASHVILLE – A Nashville, Tennessee man convicted earlier this year of drug distribution and firearms offenses was sentenced today to 20 years in prison, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
Gary Edmiston, 33, was indicted in October 2019 and pleaded guilty in April to four counts of distributing heroin, possession with intent to distribute heroin and cocaine; possession of a firearm by a convicted felon; and possession of a firearm in furtherance of a drug trafficking crime.
Edmiston, a member of the Rollin’ 40s Street Gang, was on state parole for conspiracy to commit aggravated robbery and a drug trafficking crime when he began selling heroin in front of his North Nashville residence in September 2018. After numerous sales of heroin to an informant and others in front of the residence, state parole officers made a surprise visit to his home and a search of Edmiston’s bedroom resulted in the seizure of approximately 36 grams of heroin, 17 grams of cocaine, a loaded assault rifle, a loaded handgun, and over $3,000 in cash.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the Tennessee Department of Correction; and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Ahmed A. Safeeullah prosecuted the case.
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For the Third Time, Nashville Man Convicted of Being A Convicted Felon in Possession of A FirearmRead the Press Release
NASHVILLE – A federal jury yesterday, convicted Davian M. Greenlee, 40, of Nashville, with being a convicted felon in possession of a firearm, announced Acting U.S. Attorney Mary Jane Stewart.
This conviction arose from an incident which occurred on March 16, 2018, when Greenlee and Darius Gustus, 28, broke into a home in Antioch, Tennessee. Officers with the Metropolitan Nashville Police Department responded to a call from a neighbor and found Gustus on the roof of the home, trying to escape and Greenlee was found inside hiding under a pile of clothes in a closet.
A stolen, loaded .40 caliber Glock, taken from an earlier burglary, was found next to Greenlee, which he claimed belonged to the homeowner and a loaded 9mm pistol was found on the roof where Gustus was hiding. The homeowners testified that they did not own or possess a firearm.
Greenlee was previously charged in December 2002 with being a convicted felon in possession of a firearm and pleaded guilty in July 2003. He was charged again with the same offense in May 2008 and also pleaded guilty to that charge. Greenlee was on supervised release when he committed the latest offense.
Sentencing in this case is set for February 14, 2022. If the Court finds that Greenlee is an Armed Career Criminal, he faces up to life in prison.
Darius Gustus previously pleaded guilty and will be sentenced early next year.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Robert E. McGuire and Kathryn W. Booth prosecuted the case.
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Former Trousdale Turner Supervisory Corrections Officer Indicted for Civil Rights Violations and Obstruction ChargesRead the Press Release
NASHVILLE – A federal indictment unsealed today charged former supervisory corrections officer Kenan Lister, 42, of Clarksville, Tennessee, with federal civil rights and obstruction offenses, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.
Lister is charged with one count of deprivation of rights under color of law for using unlawful force on an inmate; one count for being deliberately indifferent to the inmate’s medical needs; and one count of obstructing justice. FBI agents arrested Lister at his home this morning and he will make an initial appearance before a U.S. Magistrate Judge later today.
The indictment alleges 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 prison’s security threat group coordinator. The indictment alleges that, while the inmate was sitting in a holding cell and not resisting, Lister punched the inmate in the head, knocking him to the ground, and then kicked, punched and struck the inmate multiple times in his head, chest, and torso after he was on the ground. The inmate sustained bodily injury as a result of the assault. Despite Lister’s knowledge that the inmate needed medical attention, Lister failed to provide medical care or to make the necessary notifications to get the inmate medical care. Lister then obstructed justice by submitting a false report that omitted his use of force entirely.
If convicted, Lister faces a maximum sentence of 10 years in prison for the civil rights charges and up to 20 years in prison for the obstruction charge, as well as a maximum of three years of supervised release and a fine of up to $250,000.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Sara Beth Myers of the Middle District of Tennessee and Civil Rights Division Trial Attorney Michael J. Songer.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Jury Convicts Clarksville Doctor of 36 Counts Related to Pill Mill OperationRead the Press Release
NASHVILLE – A federal jury on Friday, completed its deliberations in the case of Dr. Samson Orusa, 59, of Clarksville, Tennessee, who was convicted last month of federal drug charges, healthcare fraud, money laundering, and illegally distributing oxycodone at his medical practice, announced Acting U.S. Attorney Mary Jane Stewart for the Middle district of Tennessee.
After finding Orusa guilty in August of 36 of the 45 counts, the jury returned on Friday to hear evidence supporting the forfeiture of the ill-gotten proceeds of the crimes. After deliberations, the jury determined that five bank accounts, one annuity and one 401K, with a combined value of more than $918,000 was subject to forfeiture, and also a 2017 Mercedes Benz.
Following a two-week trial, Dr. Orusa was convicted on August 13, 2021, of maintaining a drug-involved premise, 13 counts of unlawfully distributing controlled substances without a legitimate medical purpose and outside the bounds of professional medical practice, 13 counts of health care fraud, seven counts of money laundering, and two counts of laundering more than $10,000 of criminally derived property. The jury acquitted Dr. Orusa of nine counts of illegal distribution of oxycodone.
“Physicians like Dr. Orusa who violate their oath and engage in such reckless conduct and contribute to the opioid epidemic facing this nation can expect to bear the full force and effect of the federal justice system,” said Acting U.S. Attorney Stewart. “I commend our prosecutors and law enforcement partners for their exceptionally hard work in thoroughly investigating this case and preparing it for a successful prosecution.”
Dr. Orusa was initially charged in a 45-count indictment handed down in December 2018. The evidence at trial established that Dr. Orusa, while operating a pain clinic in Clarksville, routinely prescribed oxycodone and other Schedule II controlled substances without obtaining the patient’s prior medical history, performing a physical examination, or ordering diagnostic tests of patients. Evidence also established that two patients overdosed while inside Dr. Orusa’s clinic.
Trial testimony from former employees and patients described a standing room only lobby area at Orusa’s clinic, along with an unsanitary public bathroom. Patients with insurance coverage were forced to visit the clinic four to six times a month and undergo cortisone shots to receive pain medication and Dr. Orusa threatened to withhold pain management prescriptions from those who refused the injections. Cash paying patients generally were not required to accept injections in order to receive prescriptions. Due to the excessive number of controlled substance prescriptions, Walmart and CVS pharmacies refused to fill prescriptions written by Dr. Orusa.
Other evidence and testimony established that Orusa conducted financial transactions designed to disguise the nature of the unlawful activity and that he transferred proceeds of the unlawful activity to foreign bank accounts; used clinic proceeds to make a $12,451.00 down payment on a Mercedez-Benz; and wrote a check for the purchase of $100,000 in securities.
In one instance, Dr. Orusa billed Medicare for services he claimed to have provided to 57 patients in a single day despite being at the clinic for less than six hours.
Orusa faces up to 20 years in prison on each drug-related count and up to 10 years in prison on each healthcare fraud and money laundering count. A sentencing date has not yet been scheduled.
This case was prosecuted by the U.S. Drug Enforcement Administration; the U.S. Department of Health & Human Services Office of Inspector General; the IRS-Criminal Investigation; the Tennessee Bureau of Investigation; the Clarksville Police Department; and the 19th Judicial District Drug Task Force.
Assistant United States Attorneys Stephanie N. Toussaint and Miller A. Bushong prosecuted the case.
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Justice Department Resolves Lawsuit Alleging Disability-Based Discrimination by Developer and Owners of Eight Senior Living Complexes in Five StatesRead the Press Release
NASHVILLE – The Justice Department announced today that the developer and owners of eight senior living complexes in Alabama, Florida, Georgia, South Carolina, and Tennessee have agreed to pay $450,000 to settle claims that they violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by failing to build these properties with required accessible features for people with disabilities. As part of the settlement, the defendants agreed to make substantial retrofits to remove accessibility barriers at the complexes, including more than 1,500 units.
Under the consent order that was approved by the U.S. District Court for the Northern District of Alabama, Dominion Management LLC and its affiliate companies will pay all costs related to the retrofits, $400,000 into a settlement fund to compensate individuals harmed by the inaccessible housing, and $50,000 in civil penalties to the government. The defendants also will undergo training, ensure that any future construction complies with federal accessibility laws, and make periodic reports to the Justice Department.
This matter originated when the U.S. Attorney’s Office for the Middle District of Tennessee learned of potential accessibility barriers at Somerby Franklin, the Dominion-built property in Franklin, Tennessee.
“This settlement will lead to overdue property improvements which will serve to improve the quality of life for many elderly and disabled residents,” said Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. “The FHA and the ADA exist, among other reasons, to prevent these kinds of obstacles from interfering with the daily activities of protected classes of residents. We will continue to vigorously investigate these types of complaints and take appropriate action to resolve issues which may run afoul of civil rights statutes.”
“All people deserve equal access to housing, including people with disabilities. The Justice Department stands ready to vigorously enforce federal laws to ensure accessibility for people with disabilities,” said Assistant Attorney General Kristen Clarke of the Department’s Civil Rights Division. “The agreement requires comprehensive corrections that will make the properties accessible for the senior citizens and people with disabilities who live there so that they can more fully enjoy their homes.”
“Today’s resolution ensures that a substantial number of persons with disabilities have accessible and safe living spaces,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “Our office will continue to work tirelessly to enforce the Fair Housing Act, and to see that its promise is met.”
Under the settlement, the defendants will, among other things, create accessible pedestrian walkways to the leasing office and site amenities, install accessible curb cuts and parking, and modify kitchens and bathrooms at these senior living complexes:
- Fleming Farms, Huntsville (Alabama)
- Somerby St. Vincent’s One Nineteen, Birmingham (Alabama)
- Somerby Peachtree City (Georgia)
- Somerby Sandy Springs (Georgia)
- Westside, Alpharetta (Georgia)
- Somerby Santa Rosa Beach (Florida)
- Somerby Mount Pleasant (South Carolina)
- Somerby Franklin (Tennessee)
Individuals who are entitled to share in the settlement fund will be identified through a process established in the consent order. Persons who believe that they or their family members were subjected to unlawful discrimination at any of these complexes should contact the Justice Department toll-free at 1-833-591-0291, select option 1 for English; select option 4 for housing accessibility for persons with disabilities; and select option 2 for Dominion Management LLC to leave a voice message or e-mail the Justice Department at [email protected].
This matter was handled by Assistant U.S. Attorney Ellen Bowden McIntyre of the Middle District of Tennessee, DOJ Trial Attorney Julie Allen, and Assistant U.S. Attorney Jason Cheek of the Northern District of Alabama.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on disability, race, color, religion, national origin, sex, and familial status. The FHA requires all multifamily housing constructed after March 13, 1991, to have basic accessible features. Enacted in 1990, the ADA requires that places of public accommodation, such as rental offices at multifamily complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals may report disability discrimination or other forms of housing discrimination by calling the Justice Department at 1-800-896-7743, or submitting a report online at http://civilrights.justice.gov/. Individuals also may report discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777, or by filing a complaint online.
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California Software Company Executives Charged in Conspiracy to Defraud the Tennessee Valley AuthorityRead the Press Release
NASHVILLE – A seven-count indictment unsealed Friday charged two Danville, California men with conspiracy to defraud the Tennessee Valley Authority (TVA) of more than $300,000, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
Anthony Gigliotti, 74, the CEO of Autonomic Software, Inc., (Autonomic) was charged with conspiracy to commit wire fraud, three counts of mail fraud, and three counts of wire fraud. Alexander Gigliotti, 36, the Vice President of Autonomic, was charged with conspiracy to commit wire fraud. Both were arrested by U.S. Marshals in Danville, California on Friday and will appear in the Middle District of Tennessee at a later date for further proceedings.
According to the indictment, Autonomic was a software company located in Danville, California, which provided a variety of software to private and public sector organizations. In 2016, Autonomic installed power management software in Rutherford County school systems, in connection with TVA’s EnergyRight program, an incentive-based program designed to save energy and reduce costs through the installation of energy-saving software. To be eligible for the energy conservation funds, customers were required to pay a portion of the software materials costs.
Instead of following the program requirements, Autonomic represented to the Rutherford County School District that schools would not incur any costs associated with the software installation. Following the installation of the software, Autonomic submitted 47 invoices, totaling $588,240 to Lockheed Martin, the contract administrator of the EnergyRight program. The invoices were made out to Rutherford County Schools and represented that each school incurred costs associated with Autonomic’s software installation.
Alexander Gigliotti also sent an email to a Lockheed Martin representative in support of seeking the incentive payments from TVA, with a breakdown of an invoice regarding purported costs incurred by Rutherford County Schools, claiming that the school paid $22 per computer related to software and $8 per computer related to support. In fact, Rutherford County Schools did not incur any costs associated with any invoice from Autonomic. Lockheed Martin then mailed incentive payments to Autonomic that corresponded to each invoice.
The Autonomic software failed to function as initially represented and approximately one year after the installation, Rutherford County Schools purchased energy saving software that could effectively quantify energy savings and which cost substantially less than Autonomic’s total purported materials costs.
The indictment also alleges that Anthony Gigliotti lied to TVA agents by falsely stating that Alexander Gigliotti was not involved in any of the previous TVA or school system work.
If convicted, the defendants face up to 20 years in prison.
This case was investigated by the TVA Office of Inspector General and is being prosecuted by Assistant U.S. Attorney Sara Beth Myers.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law.
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Two Mid-State Men Sentenced in Hospital Fraud ConspiracyRead the Press Release
NASHVILLE, Tenn. – September 10, 2021 – Two middle Tennessee men have been sentenced for their roles in a conspiracy to defraud two hospital management companies, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
Tyrone Floyd Berry, 46, of Lawrenceburg, Tennessee, was sentenced yesterday to 12 months and one day in prison and ordered to forfeit $247,734.92. Aaron James Hill, 43, of Fairview, Tennessee, was previously sentenced in July to 33 months in prison and ordered to forfeit $577,500. Both men previously pleaded guilty to one count of conspiracy to commit wire fraud, and two counts of wire fraud.
According to court documents, Hill worked as a human resource coordinator at Community Health Services in Franklin, where he was responsible for selecting recruiting vendors on behalf of his company. Around August 2015, Hill and Berry agreed to create false invoices for “Berry Recruiting,” a company purportedly owned by Berry. Berry scoured various social media websites and pages such as LinkedIn and Craig’s List to obtain the names of unsuspecting job seekers. Hill submitted invoices to Community Health Services for payment, representing that these persons were recruited Berry Recruiting. In fact, these individuals were unaffiliated with Hill, Berry, Berry Recruiting, or Community Health Services. Berry Recruiting received $257,469.84 for 38 false invoices submitted to Community Health Services between August 2015 and April 2016.
Hill and Berry carried out a similar scheme at Quorum Health Corporation in Brentwood, where Hill began working in May 2016 as an employee relations manager. Hill and Berry subsequently submitted false invoices to Quorum Health on behalf of Berry Recruiting. Berry Recruiting received $567,765 for 33 false invoices, all of which falsely represented Berry Recruiting obtained and relocated new employees. The investigation determined Hill and Berry simply recycled the names of employees previously recruited by other firms and hired by Quorum Health.
Between August 2015 through April 2017, Hill and Berry obtained over $825,000 from the two companies, and thereafter split the unlawful proceeds.
This case was investigated by the Federal Bureau of Investigation with assistance from the Williamson County Sheriff’s Office. Assistant U.S. Attorney Stephanie N. Toussaint prosecuted the case.
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Owner of Purported Sports Marketing Agency Facing Federal Charges in Ponzi SchemeRead the Press Release
NASHVILLE –Katie Lynn Mancuso, 40, of Nashville, was charged today with bank fraud and wire fraud, resulting from a fraudulent scheme in which she received more than $2.8 million from investors, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
According to the charging document, Mancuso owned and operated Gray Area Marketing in Nashville, which was purportedly a sports marketing agency representing various famous athletes. As part of the fraudulent scheme and beginning in June 2017, Mancuso solicited funds from investors and falsely represented that Gray Area had been awarded contracts to perform marketing services for professional athletes. Mancuso overstated Gray Area’s assets and receivables and promised to repay investor’s funds within 90 days and with a rate of return usually between 15%-25%. Mancuso also provided investors with fake invoices that falsely reflected money owed to Gray Area by vendors such as Nike, Oakley, and Under Armour for services rendered.
During the course of the scheme, Mancuso generated fraudulent invoices and emails to make her business appear legitimate. She also forged the signature of an attorney on a fraudulent attorney-client representation and forged the signatures of another individual on a purported contract.
Between June 2017 and February 2021, Mancuso solicited funds from at least 26 investors and received more than $2.8 million. Although she repaid some investors, using funds from others, the total loss to investors was more than $1.1 million. Mancuso used the investment funds to pay her living expenses and at hotels, bars, and to obtain plastic surgery.
If convicted, Mancuso faces up to 20 years in prison for wire fraud and up to 30 years in prison for bank fraud.
This case was investigated by the FBI. Assistant U.S. Attorney Kathryn W. Booth is prosecuting the case.
The charges are merely accusations. The defendant is presumed innocent until proven guilty in a court of law.
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Nashville Man Charged with Civil Rights Violations for Series of Church ArsonsRead the Press Release
NASHVILLE – A Nashville man was charged today with civil rights violations for his role in the arson of four Nashville area churches, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee and Assistant Attorney General Kristen M. Clarke of the Civil Rights Division.
Alan Douglas Fox, 28, was charged by criminal Information with setting fire to the Crievewood United Methodist Church on June 17, 2019; the Crievewood Baptist Church on June 25, 2019; the Saint Ignatius of Antioch Catholic Church on June 25, 2019; and the Priest Lake Community Baptist Church on June 26, 2019. Fox is also charged with carrying and using a firearm during the arson of the Crievewood Baptist Church.
The Information alleges that Fox intentionally set the fires because of the religious character of the churches.
If convicted, Fox faces up to 20 years in prison for each fire, and a consecutive five-year sentence for the firearms violation.
This case was investigated by the FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department, and the Nashville Fire Department. Assistant U.S. Attorney Sara Beth Myers and Trial Attorney Kyle Boynton of the Department’s Civil Rights Division are prosecuting the case.
The charges are merely accusations and the defendant is presumed innocent until proven guilty in a court of law.
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Joint Statement from Acting U.S. Attorney Mary Jane Stewart and Special Agent in Charge Douglas M. Korneski of the FBI Memphis Field OfficeRead the Press Release
NASHVILLE – To our neighbors who have been severely impacted by the catastrophic flooding-particularly to those in Humphreys County:
“We are devastated by the unprecedented level of destruction that has occurred and can barely fathom the pain and suffering inflicted on so many. As the rebuilding of these impacted communities begins, please be aware of scammers who will attempt to profit from the pain and suffering of others. If you suspect that you are a potential victim of a scam relating to this disaster, please call the Disaster Fraud Hotline or visit https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form to report fraudulent activity.
A warning to scammers who are already at work - the U.S. Attorney’s Office and the FBI will be vigilantly supporting our local law enforcement partners in identifying and apprehending anyone engaged in fraudulent activity designed to further victimize those who have suffered so much from this catastrophe. We will maintain a zero-tolerance approach and bring federal charges whenever appropriate.”
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Tennessee Prison Inmate Sentenced to Federal Prison for White Powder Mailing HoaxRead the Press Release
NASHVILLE – Jeffery Durance, 38, of Gatlinburg, Tennessee, and an inmate of the Tennessee Department of Correction, was sentenced yesterday in U.S. District Court to three years in prison for mailing a threatening communication and conveying false information while threatening to use a Weapon of Mass Destruction (WMD), announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
Durance was indicted in July 2019 after he mailed an envelope containing a white powder to the Commissioner of the Tennessee Department of Correction, Tony Parker, on September 6, 2018. The envelope was sent through the U.S. Mail to the Tennessee Tower State Office Building in Nashville and contained a threatening letter, which caused a reasonable belief that the powder contained a biological agent or toxin, which would constitute a WMD. The Powder was later determined to be an inert material.
Durance pleaded guilty to the charges in March of this year.
This case was investigated by the FBI; the Tennessee Highway Patrol; the Tennessee Department of Correction; the Metropolitan Nashville Police Department; and the Metropolitan Nashville Fire Department. Assistant U.S. Attorney Robert S. Levine is prosecuting the case.
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Former CEO of Comprehensive Pain Specialists Resolves Civil Lawsuit with United StatesRead the Press Release
NASHVILLE – John Davis, 43, of Franklin, Tennessee, and the former CEO of Anesthesia Services Associates, PLLC d/b/a Comprehensive Pain Specialists (“CPS”), agreed to a permanent voluntary exclusion from participation in federal procurement and non-procurement programs as part of an agreement to resolve the United States’ civil claims against him, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
CPS, which was based in Brentwood, Tennessee, at one point operated over 40 pain clinics and had operations in 12 states, until it shut down in 2018. On July 22, 2019, the United States filed a Consolidated Complaint in Intervention in the United States District Court for the Middle District of Tennessee against Davis, as well as CPS and other CPS executives, alleging, among other things, that Davis submitted false claims for medically unnecessary and/or non-reimbursable testing and acupuncture (the “Civil Action”).
As part of the settlement, Davis also agreed not to be employed in any industry or field in which he could, either directly or indirectly, submit claims seeking reimbursement from Medicare and other Federal health care programs.
In April 2019, Davis was convicted for his role in a $4 million Medicare Kickback scheme. After a seven-day trial, a jury convicted Davis of one count of conspiracy to defraud the United States and violate the Anti-Kickback Statute as well as seven counts of violating the Anti-Kickback Statute. In July 2020, Davis was sentenced on the criminal charges to 42 months in prison. Earlier this year, Davis’ sentence was commuted by then-President Donald J. Trump.
The United States previously resolved its claims against CPS, its owners, and a former manager. This settlement resolves the remaining allegations against Davis and results in the dismissal of the Civil Action.
The Civil Action was handled by the United States Attorney’s Office for the Middle District of Tennessee and the Tennessee Attorney General’s Office. This case was investigated by the Department of Health and Human Services, Office of Inspector General and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Kara F. Sweet represented the United States.
The Civil Action is captioned United States and the State of Tennessee ex. rel. Suzanne Alt, et al. v. Anesthesia Services Associates, PLLC, et al., Case No. 3:16-cv-00549 (M.D. Tenn.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Mail-Order Diabetic Testing Supplier and Its Parent Company Agree to Pay $160 Million to Resolve Alleged False Claims to MedicareRead the Press Release
NASHVILLE – Arriva Medical, LLC (Arriva), at one point the nation’s largest Medicare mail-order diabetic testing supplier, and its parent, Alere Inc. (Alere), have agreed to pay $160 million to resolve allegations that they violated the False Claims Act. Until it ceased business operations in December 2017, Arriva was a mail-order diabetic testing supply company based in Coral Springs, Florida and one of the largest such mail order diabetic supply companies in the nation. Alere is a medical device company now based in Abbott Park, Illinois, which acquired Arriva in November 2011. The settlement resolves allegations that Arriva and Alere made, or caused, claims to Medicare that were false because of kickbacks to Medicare beneficiaries, because patients were ineligible to receive meters, or because patients were deceased.
“The False Claims Act and related statutes exist to protect the public fisc and to ensure companies do not benefit from unfair competition by gaining an illegal advantage over competitors,” said Acting U.S. Attorney Mary Jane Stewart. “When companies engage in such practice, they can expect to be held accountable for their actions.”
“Paying illegal inducements to Medicare beneficiaries in the form of free items and routine copayment waivers can result in overutilization and waste taxpayer funds,” said Acting Assistant Attorney General Bryan M. Boynton for the Justice Department’s Civil Division. “We will continue to protect the integrity of the Medicare program by pursuing fraudulent claims arising from violations of the Anti-Kickback Statute or other applicable reimbursement requirements.
The United States alleged that, from April 2010 until the end of 2016, Arriva, with Alere’s approval, paid kickbacks to Medicare beneficiaries by providing them “free” or “no cost” glucometers and by routinely waiving, or not collecting, their copayments for these meters and other diabetic testing supplies. Specifically, the United States alleged that Arriva advertised that glucometers would be “free,” and then during intake calls offered Medicare beneficiaries a “no cost guarantee,” under which Arriva would provide the meters at “no cost” if Medicare denied payment, which typically happened because the beneficiaries were not yet entitled to a new glucometer paid for by Medicare. Arriva also allegedly offered and provided existing customers “free” additional meters to induce them to reorder testing supplies from Arriva.
Arriva also allegedly routinely waived, and failed to make reasonable efforts to collect, Medicare copayments. It allegedly failed to send invoices to beneficiaries, and failed to take other basic steps, like sending collection letters or making phone calls, to collect copayments. Specifically, Arriva allegedly systematically waived “small” dollar copayments without informing beneficiaries of their copayment obligations by sending them an invoice, and allegedly automatically waived other unpaid copayments after sending no more than three invoices seeking payment and making no other collection efforts. Arriva also allegedly waived copayments when customers complained that Arriva had advertised and otherwise indicated that their supplies would be free or at no cost.
“Engaging in activities that result in the submission of false claims to Medicare diverts funding from the necessary treatment and medical supplies beneficiaries need,” said Special Agent in Charge Derrick L. Jackson, U.S. Department of Health and Human Services Office of Inspector General. “We will continue working with our law enforcement partners to hold accountable those who seek to enrich themselves by submitting false claims to federal healthcare programs.”
“The TBI is diligent in pursuing false claims allegations such as these,” said Director David Rausch of the Tennessee Bureau of Investigation. “The partnership we have with our federal counterparts is key in combating healthcare fraud.”
The settlement also resolves allegations that Arriva and Alere caused the submission of false claims to Medicare for glucometers because Arriva, with Alere’s approval, allegedly systematically provided to all of its new patients, and billed Medicare for, a meter without regard to the patients’ eligibility for one. Medicare beneficiaries are only eligible to seek reimbursement for a new meter once every five years. Arriva also allegedly repeatedly billed Medicare for new meters for existing patients where Arriva itself had previously billed Medicare for meters for those patients within the five-year window.
Finally, the settlement resolves claims that Arriva submitted false claims to Medicare on behalf of deceased beneficiaries. In November 2016, the Medicare program revoked Arriva’s Medicare supplier number for doing so.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Gregory Goodman, a former employee at an Arriva call center in Antioch, Tennessee. 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 of such actions, as the United States did here. Mr. Goodman will receive $28,548,748.98 as his share of the recovery. The qui tam case is captioned United States ex rel. Goodman v. Arriva Medical LLC et al., Case No. 3:13-cv-00760 (M.D. Tenn.).
Arriva’s founders, David Wallace and Timothy Stocksdale, previously paid $1 million to resolve allegations that they participated in the kickback scheme. Ted Albin and Albin’s Florida-based company, Grapevine Billing and Consulting Services, Inc., are not parties to the settlement and remain defendants in the ongoing litigation. The United States filed suit against Albin and Grapevine shortly after it intervened in the qui tam action against Arriva and Alere.
The settlement of this case is the largest single False Claims Act settlement by the U.S. Attorney’s Office for the Middle District of Tennessee and one of the largest settlements for allegations of kickbacks involving durable medical equipment in the United States.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Middle District of Tennessee, the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Department of Health and Human Services Office of Inspector General, and the Tennessee Bureau of Investigation.
The investigation and resolution of this matter illustrates the government’s emphasis on combating 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).
The matter was handled by Assistant U.S. Attorney Ellen Bowden McIntyre of the Middle District of Tennessee and Trial Attorney Jake M. Shields of the Civil Division.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Owner of Signature Nails Spa Indicted on Tax Evasion and Obstruction ChargesRead the Press Release
NASHVILLE – A federal indictment unsealed today charged Chieu K. Tran, 54, of Nashville, the owner of Signature Nails Spa, (Signature) with tax evasion and obstruction of justice charges, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. Tran was arrested by IRS Criminal Investigation Agents at his home this morning and will appear before a U.S. Magistrate Judge later today.
According to the indictment, Tran was the owner and operator of Signature Nails Salon in Nashville which provided manicure, pedicure and waxing services and employed approximately 25-50 nail technicians in any given year. Tran paid the nail technicians based on a commission of 60% and paid those wages by a combination of 50% cash and 50% check. For tax years 2014-2018, nail technicians were paid approximately $10.5 million.
In 2008, the Tennessee Department of Labor and Workforce Development (TNLWD) conducted an audit of Signature worker classifications and Tran was notified that his workers were to be classified as “employees” and that he was required to file quarterly reports to report the wages paid to them. Tran appealed the TNLWD’s decision, arguing that his workers were “independent contractors” and not “employees.” The TNLWD upheld the decision, and it became final. Tran then began reporting some of his employees’ wages but continued to classify other employees as independent contractors, despite the decision of the TNLWD.
In 2017, the TNLWD again audited Signature and found that Tran paid his workers cash that he had not reported and that he continued to misclassify some employees as independent contractors. The audit determined that Tran had underreported wages in 2014 by $987,203.80; underreported wages for 2015 by $1,075,718.40; and underreported wages in 2016 by $1,099,356.90.
The indictment alleges that Tran did not file federal employment tax returns reporting his employees’ wages and withholdings, as required, nor did he withhold employment taxes or pay the employer’s portion of employment taxes for wages paid to employees. According to the indictment, the tax loss attributable to eight separate quarters during tax years 2015 through 2018 was over $542,000.
The indictment also alleges that while knowing the IRS was conducting a criminal investigation of him, Tran instructed nail technicians to lie to the IRS about cash payments received as wages.
If convicted, Tran faces up to 5 years in prison on each tax evasion and employment tax fraud count and up to 2 years on the obstruction count, and up to a $250,000 fine.
This case was investigated by the IRS-Criminal Investigation. Assistant U.S. Attorneys Kathryn W. Booth and Stephanie N. Toussaint are 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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Kentucky Man Charged with Federal Child Pornography OffensesRead the Press Release
NASHVILLE – A criminal complaint unsealed yesterday, charged a Florence, Kentucky man with attempted production of child pornography, attempted enticement of a minor to engage in criminal sexual activity, and attempted transfer of obscene material to a minor, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
Thomas Niemeyer, 42, was arrested by FBI agents in Kentucky yesterday and made an initial appearance before a U.S. Magistrate Judge in the Eastern District of Kentucky. He will be returned to the Middle District of Tennessee for further proceedings.
According to the complaint, an FBI agent in middle Tennessee was conducting a covert online investigation, posing as an underage female on an online dating app. Although the app requires users to be at least 18 years of age, it is widely known that many users under the age of 18 misrepresent their age.
On March 30, 2021, the FBI agent was contacted online by an individual, later identified as Neimeyer, whose profile indicated that he was 38. The FBI agent verified to Neimeyer that she was actually 13 years old and Neimeyer almost immediately turned the conversation to a sexual nature. During the course of the next few months, the FBI agent and Neimeyer continued their conversations on the Snapchat app and Niemeyer sent numerous photos and videos depicting sexual activity and made several requests to the FBI agent to send nude photos.
On June 18, 2021, Neimeyer and the FBI agent agreed to meet in middle Tennessee to engage in sexual activity, however, Neimeyer contacted the FBI agent that morning and said he had changed his mind after driving some distance toward Tennessee because he was afraid of being met by law enforcement when he arrived. Further investigation by the FBI identified Neimeyer as the suspect and confirmed the location of the IP address as Neimeyer’s home in Florence, Kentucky.
If convicted, Neimeyer faces a mandatory minimum of 15 years, and up to life in prison.
This case was investigated by the FBI. Assistant U.S. Attorney Monica Morrison is prosecuting the case.
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Nine MS-13 Gang Members Indicted in Racketeering and Violent Crime ConspiracyRead the Press Release
A federal grand jury in Nashville, Tennessee, has returned a 60-count indictment charging nine members of La Mara Salvatrucha (MS-13) with a racketeering conspiracy spanning more than seven years.
Those charged in the second superseding indictment are: Carlos Ochoa-Martinez, 31, aka “El Serio;” Jason Sandoval, 35, aka “Bin Laden;” Jorge Flores, 29, aka “Peluche;” Kevin Tidwell, 28, aka “Miklo;” all of Nashville; Jose Pineda-Caceres, 22, aka “Demente;” Franklin Hernandez, 22, aka “Happy;” Luis Colindres, 24, aka “Listo;” Gerson Serrano-Ramirez, 34, aka “Frijole;” and Juan Melendez, aka “Shaggy.”
According to court documents and statements made in court, MS-13 is a national and transnational gang composed largely of individuals of Salvadoran or Central American descent. The purpose of the MS-13 enterprise includes preserving and protecting the power, territory, reputation and profits of the enterprise through the use of intimidation and violence, including murder and promoting the enterprise through acts of murder, robbery, drug trafficking and other criminal activities. Branches or “cliques” of MS-13 operate throughout the United States, including in Nashville.
The indictment charges members of one such clique operating in Nashville, specifically the Thompson Place Locos Salvatrucha clique, with committing a wide range of offenses, including the murder of seven individuals, the attempted murder of an additional five individuals, drug distribution, robberies, kidnappings and assaults. More specifically, the indictment charges the following acts of violence occurring over an approximately 17-month period:
Date
Offense/Predicate Act
April 6, 2016
J.A. murdered
July 31, 2016
L.R. murdered, during the gang’s attempt to murder R.R.
Jan. 18, 2017
Attempted murder of R.V.
Feb. 18, 2017
Attempted murder of H.V., L.A., and H.S.
Feb. 25, 2017
Attempted murder of H.S.
May 21, 2017
A.G. murdered
May 27, 2017
J.F. murdered; and attempted murder of L.R.L.
June 1, 2017
Assault of deputized federal officer
June 17, 2017
Kidnapping and assault of C.R.
July 25, 2017
Kidnapping and assault of X.A. to prevent him/her from cooperating with law enforcement
Sept. 24, 2017
H.Z. and Y.H. murdered
Sept. 24, 2017
A.L. murdered; gang members then burned a car with A.L.’s body in the trunk
As alleged in the indictment, MS-13 gang members often target individuals for violence based on the gang’s belief that an individual is a rival gang member or a potential witness to crimes committed by the MS-13 members. MS-13 members are required to follow various rules, chief among them being that cooperation with law enforcement is strictly prohibited, and it is well understood within the gang that anyone who assists the authorities will be punished with death; that members are required to confront, fight and/or kill rival gang members when possible; and that members are required to retaliate quickly and viciously against anyone who disrespects or threatens the gang’s authority, power, reputation or control of a neighborhood. Participation in such violent acts by a member increases the respect accorded to that member, results in that member maintaining or increasing their position in the gang, and could result in a promotion to a leadership position.The defendants are charged with RICO conspiracy, murder and other violent crimes in aid of racketeering, witness tampering, causing death through the use of a firearm, using a firearm during a crime of violence, possessing a firearm during a drug trafficking crime, and violations of the Controlled Substances Act, among other crimes. The statutory penalties for the charged offenses range from a statutory maximum of 10 years to life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Mary Jane Stewart of the U.S. Attorney’s Office for the Middle District of Tennessee; Special Agent in Charge Mickey French of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Deputy Special Agent in Charge Nicholas Nelson of Homeland Security Investigations; Assistant Special Agent in Charge Brett Pritts of the Drug Enforcement Administration (DEA); U.S. Marshal Denny King; Metropolitan Nashville Police Chief John Drake; and Director David Rausch of the Tennessee Bureau of Investigation made the announcement.
Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Ahmed Safeeullah are prosecuting this case.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law.
Nine MS-13 Gang Members Indicted in Racketeering & Violent Crime ConspiracyRead the Press Release
NASHVILLE – A federal grand jury in Nashville on Monday handed down a 60-count, second superseding indictment, charging nine members of the MS-13 gang with a racketeering conspiracy which includes allegations of seven murders, kidnappings, numerous assaults, robberies and large scale drug distribution.
Acting U.S. Attorney Mary Jane Stewart made the announcement at a morning press conference, joined by Assistant Attorney General of the Department of Justice Criminal Division, Kenneth A. Polite, Jr.; Metropolitan Nashville Police Chief John Drake; ATF special Agent in Charge Mickey French; Deputy Special Agent in Charge of Homeland Security Investigations Nicholas Nelson; Assistant Special Agent in Charge of DEA Brett Pritts; United States Marshal Denny King; and Director David Rausch of the Tennessee Bureau of Investigation.
Those charged in the indictment are: Carlos Ochoa-Martinez, 31, aka “El Serio,” Jason Sandoval, 35, aka “Bin Laden,” Jorge Flores, 29, aka “Peluche,” Kevin Tidwell, 28, aka “Miklo,” all of Nashville; Jose Pineda-Caceres, 22, aka “Demente,” Franklin Hernandez, 22, aka “Happy,” and Luis Colindres, 24, aka “Listo,” all of Honduras; Gerson Serrano-Ramirez, 34, aka “Frijole,” of El Salvador and Juan Melendez,” aka “Shaggy,” of Lebanon, Tennessee.
The indictment describes the organizational structure of MS-13 and the gang’s sub-unit, operating in Nashville since at least 2014, specifically the Thompson Place Los Salvatrucha clique. The purpose of the MS-13 enterprise includes preserving and protecting the power, territory, reputation and profits of the enterprise through the use of intimidation and violence, including murder and promoting the enterprise through acts of murder, extortion, drug trafficking and other criminal activities.
To generate income, MS-13 Gang members engage in illegal activities under the protection of the enterprise, including drug trafficking, robbery, extortion, and other crimes. They will often steal and used stolen vehicles to carry out these illegal activities. Funds generated by the illegal activity provide financial support to gang leaders, members and associates, including individuals incarcerated in the United States and in El Salvador.
Cooperation with law enforcement is strictly prohibited under MS-13’s rules. It is well understood within the gang that anyone who assists authorities will be punished with death, and the gang honors those who have killed police informants.
In addition to numerous acts of drug distribution and firearms offenses, the indictment alleges that one or more MS-13 Gang members conspired with other MS-13 Gang members and committed the following acts of violence:
- On April 6, 2016, murdered J.A. in Nashville by shooting him.
- On July 31, 2016, murdered L.R. in Nashville while attempting to murder R.R.
- On January 18, 2017, attempted to murder R.V. in Nashville by shooting him and attempted to murder H.V., L.A., and H.S. by shooting at them.
- On February 25, 2017, attempted to murder H.S. in Nashville by shooting at him.
- On May 21, 2017, murdered A.G. in Nashville by shooting him.
- On May 27, 2017, attempted to murder L.R.L in Nashville by shooting at him and murdered J.F. by shooting him.
- On June 1, 2017, an MS-13 gang member assaulted a deputized federal officer in Brentwood, Tennessee, while possessing a firearm and attempting to evade arrest.
- On June 17, 2017, brandished and discharged a firearm in Nashville during the kidnapping and assault of C.R.
- On July 25, 2017, kidnapped and assaulted X.A. in Nashville to prevent X.A. from cooperating with law enforcement.
- On September 24, 2017, murdered H.Z. in Nashville by shooting him and murdered Y.H. by shooting him to prevent him from becoming a witness to H.Z.’s murder.
- On September 24, 2017, lured A.L. to a meeting in Nashville and murdered him by shooting him and burned a car with his body in the trunk.
All defendants are in federal custody and if convicted, face decades of incarceration, including up to life in prison.
This Organized Crime & Drug Enforcement Task Force investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives; Homeland Security Investigations; the Drug Enforcement Administration; the U.S. Marshals Service; The Tennessee Bureau of Investigation; and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Ahmed Safeeullah and Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime & Gang Section are prosecuting this case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty in a court of law.
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Holistic Wellness Business Founder Sentenced to 8 Years in Federal Prison for Ponzi SchemeRead the Press Release
NASHVILLE, – Howard L. Young, 75, the founder of a Nashville-based holistic wellness business was sentenced Friday by U.S. District Judge William L. Campbell, Jr. to eight years in prison, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. Judge Campbell also ordered Young to pay $693,128.66 in restitution for operating a Ponzi scheme, in which he duped over 80 patients, financial institutions and investors out of nearly $700,000,
Young was charged in a criminal Information in October 2020 with four counts of bank fraud; six counts of wire fraud; and aggravated identity theft. He pleaded guilty in December.
The charging documents allege, and Young admitted, that in 2015, Young founded Integrative Medical Services (IMS), purportedly a holistic wellness business. Young also held himself out to hold a Doctor of Naturopathy but did not hold a Medical Doctorate and did not have a medical license.
As early as 2017, Young began soliciting cancer patients, investors, and employees, telling them that he had obtained a $2 million grant from Vanderbilt University to study cancer patients and other patients with chronic medical conditions. Young claimed he was awarded this grant because he had cured himself of cancer using naturopathic methods. Young also promised that, as part of the “study,” patients would receive nutritional supplements, blood testing, nutrition and exercise coaching, gym memberships, massages, and acupuncture. For his scheme, Young targeted approximately 80 vulnerable victims, many of whom had been diagnosed with cancer or other debilitating medical conditions.
In order to participate in the “study,” Young told patients that Vanderbilt required an up-front payment of $10,000 but the funds would be returned to them at the conclusion of one year. If patients could not afford to pay the upfront money, they were required to secure a CareCredit credit card or open a Health Credit Services account. Each of these products is designed to assist patients in paying for medical treatments and functions like a revolving line of credit or an unsecured installment loan and requires the patient to make monthly installment payments. Young promised patients that he would hold the initial funds withdrawn in escrow and would make all monthly payments and would pay off all existing balances at the conclusion of one year, so long as the patient continued to abide by all study protocols.
In fact, Vanderbilt had not awarded any grants to Young or IMS. Young’s representations that IMS had a grant from Vanderbilt were false and was intended to induce patients to apply for and obtain credit and loan accounts at Synchrony Bank, MetaBank, and Cross River Bank; to induce investors to give him funds for his fraudulent scheme; and to induce employees to help him solicit additional patients to participate in his fraudulent scheme. Young even convinced one victim to transfer the title of his house to him in order to participate in the “study.”
Young did not hold the money in escrow as he promised and withdrew a portion of the funds for his own personal use, made payments to his personal credit cards, and made minimum payments on account holders’ credit accounts and loan accounts. Patients did not routinely receive the nutritional supplements promised by Young, nor did they receive nutrition and exercise coaching, gym memberships, massages, or acupuncture as promised. To further conceal his scheme, Young also changed the mailing addresses for patients’ accounts at CareCredit and HCS so that the monthly account statements went to a post office box he controlled. Young made minimum payments on the CareCredit and HCS accounts to conceal the fraud and to keep his scheme going so that he could recruit additional patients to participate in the fictitious grant study.
IMS generated little, if any, revenue. The vast majority of funds flowing into IMS were deposits from the CareCredit credit accounts and the HCS loan accounts. By July 2019, Young had received a total of approximately $669,470 from CareCredit and HCS.
This case was investigated by the FBI. Assistant U.S. Attorney Kathryn W. Booth prosecuted the case.
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Former Springfield Business Owner Charged in Fraudulent Loan SchemeRead the Press Release
NASHVILLE – A federal indictment was unsealed today, charging Chad William Rudicel, 52, formerly of Springfield, Tennessee, with seven counts of wire fraud, one count of mail fraud, and two counts of aggravated identity theft, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. Rudicel was arrested by FBI agents at him home in Largo, Florida, earlier this morning.
According to the indictment, Rudicel owned Ellis & Rudicel Welding (E&R), a steel fabrication and welding company located in Springfield, Tennessee. In the summer of 2015, Rudicel offered to purchase Brown’s Welding and Steel Services / Brown Cliff Crane (Brown’s Welding), another steel welding and fabrication business. The owner of the business gave Rudicel access to the books and records of the business so that Rudicel could have the business appraised. Rudicel never actually purchased Brown’s Welding but instead, in the spring of 2016, Rudicel sought funding from Thermo Communications Funding, LLC (Thermo). As part of the loan agreement, Rudicel falsely claimed that E&R had performed work for Brown’s Welding in the amount of $279,700. E&R had not, in fact, performed any work for Brown’s Welding, and Brown’s Welding did not owe E&R any money. Rudicel gave Thermo fabricated invoices and forged the signature of the owner of Brown’s Welding on a number of documents. Further, Rudicel falsely represented to Thermo that the owner of Brown’s Welding had consented to the deal. Rudicel did not repay the loan to Thermo but instead, took out another loan in the amount of $25,000 from an investment company called New Hope Properties, LLC, which he promised to repay within two months. Rudicel opened a bank account in the name of “Brown’s Welding and Crane Service,” and deposited the check into that account. He then wrote Thermo a check for $25,000 out of that account, but that check was returned for insufficient funds because Rudicel had already spent the money he received from New Hope.
In March 2017, Rudicel applied for another loan, this time from Construction Finance LLC. Rudicel applied for that loan in the name of the owner of Brown’s Welding, without his knowledge, and forged the owner’s signature on several documents. Rudicel gave Construction Finance several false invoices and job contracts that made it appear that Brown’s Welding had entered into contracts with various clients, and that Brown’s Welding had subcontracted that work to E&R. Rudicel falsely made it appear as though E&R was owed approximately $531,000. Several of these false documents contained the forged signatures of a Brown’s Welding employee and representatives of the purported clients. In addition to the forged signatures, these invoices and contracts were false and fraudulent because neither E&R nor Brown’s Welding had entered into contracts with these clients, nor completed the work, nor were they owed money by any of these clients.
If convicted, Rudicel faces a mandatory two-year sentence on each aggravated identity theft count and up to 20 years and a $250,000 fine on each wire and mail fraud count.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Kathryn W. Booth 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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Federal Jury Convicts Nashville Man in Music City Pawn RobberyRead the Press Release
NASHVILLE – A Nashville man was convicted Friday of federal crimes relating to his role in the robbery of Music City Pawn in June 2018, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
Herbert Marsh, 31, was convicted on six counts, including conspiracy, robbery, theft, possession of stolen firearms, being a convicted felon in possession of firearms and witness tampering. The jury acquitted Marsh of brandishing a firearm during a crime of violence.
Two others, also charged in the robbery, James Horton, 27, and Hakeem Mannie, 32, previously pleaded guilty to the charges. Mannie was sentenced in January 2019 to 176 months in prison and Horton is awaiting sentencing.
On June 26, 2018, the trio robbed Music City Pawn on Nolensville Pike, taking 11 firearms and nearly $8,000 in cash. The trio entered the store wearing masks and gloves and one was armed with a handgun equipped with an extended magazine and a weapon-mounted light. Two employees were then ordered to the ground and bound with cable and one employee was dragged to the rear of the store and ordered to open the safe. After taking the firearms and cash, the assailants fled the store in a U-Haul van.
Metropolitan Nashville police officers later stopped a BMW at the intersection of 24th Ave. N. and Rosa Parks Blvd. for a traffic violation. Officers identified James Horton as the driver and Mannie and Marsh as two of the three passengers. During the subsequent investigation, five stolen firearms were recovered from the vehicle, four of which were taken during the robbery at Music City Pawn. Video surveillance and witness statements also linked the trio to the robbery as well as the recovery of the U-Haul van at Marsh’s sister’s house, which was used during the getaway.
Marsh faces up to 20 years in prison when he is sentenced later this year.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Brooke K. Schiferle and Juliet Aldridge prosecuted the case.
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