Western District of Tennessee
Press releases recorded for this federal judicial district.
The Bailey Family Sentenced to a total of 249 Months in Federal Prison for Defrauding Medicare, Medicaid and TricareRead the Press Release
Jackson, TN – Following a three-week trial in February 2018, a federal jury convicted a married couple and their son, of health-care fraud offenses that led to millions of dollars lost to federal health care programs. A federal judge has sentenced them to a total of 249 months in federal prison. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentences today.
Sandra Bailey, 67 of Jackson, Tenn., was convicted of 16 counts, including conspiracy, health care fraud, and paying illegal kickbacks in connection with health care services. Her husband, Calvin Bailey, 67, was convicted of conspiracy. Their son, Bryan Bailey, 39, of Milan, Tenn., was convicted of conspiracy and wire fraud. The jury returned guilty verdicts on all 17 counts alleged in the indictment.
U.S. Attorney D. Michael Dunavant said: "Dishonest criminals are using more creative and disturbing fraudulent schemes to victimize vulnerable citizens and the American taxpayers for their own selfish gain. This case represents our commitment to expose these fraudulent schemes, protect the integrity of the Medicaid system, hold offenders accountable for their dishonest criminal conduct, and to recover ill-gotten proceeds on behalf of the government. The U.S. Attorney’s Office is willing and able to go to any lengths in our pursuit of justice in healthcare fraud cases."
Evidence at trial revealed Sandra Bailey and Calvin Bailey sold durable medical equipment including power wheelchairs and back braces. From November 2009 to September 2011, they were both employed at Jaspan Medical Systems ("Jaspan"), a durable medical equipment company with an office in Jackson, Tenn. Durable medical equipment is designed for repeated use and legitimate medical purposes. Following their employment at Jaspan, the couple was employed by other medical supply companies in West Tennessee, Kentucky and Mississippi. Calvin Bailey is also the former principal at Medina Elementary School in Medina, Tenn. Bryan Bailey was the operations and sales manager at Jaspan from October 2009 to July 2013.
While employed at Jaspan, the Baileys began to market wheelchairs to patients and represented them as paid fully by Medicare, and at no cost to the patients. To market the equipment, the Baileys used an extensive network of illegally paid recruiters to find eligible patients. After finding the patients, Sandra and Bryan Bailey would forge and falsify documents to make it appear that the patients qualified for the equipment. They also enlisted a local physician and nurse practitioner to order the equipment without the required physical examinations to determine if the equipment was medically necessary. To facilitate this scheme, Sandra Bailey paid illegal kickbacks to the medical providers.
Numerous patients testified that Sandra Bailey offered the equipment at no cost, and that they never saw the doctor or nurse practitioner before the Baileys delivered the back braces and power wheelchairs. Many also testified that they never used the power wheelchairs, and that the power wheelchairs were too large to be used in their homes. Even though most of the patients could walk, drive vehicles, and care for themselves without the need for a power wheelchair, the Baileys would falsify medical records to make it appear that the patients were qualified. In order to qualify the patients to receive the equipment at no cost, Bryan Bailey falsified and directed others to falsify patients’ income and expenses to make it appear that they were indigent.
In 2010, Bryan Bailey expanded Jaspan’s sales into North Mississippi, and hired a sales representative named Dennis Sensing to sell power wheelchairs. Sensing paid illegal kickbacks to patient recruiters to find Medicare and Medicaid patients. Bryan Bailey received sales commissions for the power wheelchairs sold by Sensing. In order to bill Medicare and Medicaid for the equipment, Sensing forged the signature of a nurse practitioner with Bryan Bailey’s knowledge. Bryan Bailey directed Sensing to falsify patients’ income and expenses to make it appear that they were indigent. Sensing sent via facsimile the forged and falsified documents to Bryan Bailey, who caused the claims to be submitted for payment. Sensing, who previously pleaded guilty to conspiracy to commit healthcare fraud and pay illegal kickbacks, testified in the government’s case.
"We always appreciate the opportunity to work with multi-state law enforcement agencies to combat healthcare fraud and protect our citizens’ resources and tax dollars," said Jim Hood, Attorney General of Mississippi.
"These defendants were the ringleaders of a multi-million dollar fraud scheme that provided expensive power wheelchairs to patients who did not need them," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "They were motivated by a desire to enrich themselves by stealing from the taxpayers and made the mistake of thinking they would not be caught."
The Baileys caused more than$4 million in billing of power wheelchairs and back braces to be paid by taxpayers. During the time the Baileys worked at Jaspan and the other companies, they received more than $1.2 million in salary and sales commissions.
On August 16, 2018, Chief United States District Judge S. Thomas Anderson sentenced Sandra Bailey to 120 months imprisonment; three years supervised release, and a $1600 special assessment. He sentenced Calvin Bailey to 45 months imprisonment; three years supervised release, and each ordered to pay $1.4 million in restitution. On June 1, 2018, Judge Anderson had sentenced Bryan Bailey to 84 months imprisonment; followed by 3 years supervised release; $1.9 million in restitution and a $200 special assessment.
This case was investigated by the U.S. Department of Health and Human Services – Office of the Inspector General, the Federal Bureau of Investigation, the Tennessee Bureau of Investigation, and the Attorney General’s Office of Mississippi.
Assistant U.S. Attorneys Stuart Canale and Matt Wilson prosecuted this case on the government’s behalf.
Ripley Man and Convicted Felon Guilty of Illegal Possession of a FirearmRead the Press Release
Memphis, TN – Following a two-day jury trial in federal court, a Ripley, Tennessee man has been found guilty as a felon in possession of a firearm. D. Michael Dunavant, United States Attorney for the Western District of Tennessee announced the guilty verdict today.
According to evidence presented at trial, in January 2017, the 25th Judicial Drug Task Force initiated an investigation into the illegal drug trafficking of Jason Nixon, 36. The investigation revealed that Nixon was selling marijuana out of his residence. On January 27, 2017, the 25th Judicial Drug Task Force and members of the Ripley Police Department and Lauderdale County Sheriff’s Department executed a search warrant at Nixon’s residence. A loaded Clerke .32 caliber revolver, multiple bags of marijuana, a digital scale and several rounds of ammunition were recovered from the property.
U.S. Attorney Dunavant said, "This defendant has devoted his entire adult life to criminal activity, and his prior conviction history demonstrates his disrespect for the law and danger to the Lauderdale County community. As a result of his prior criminal behavior, Nixon may now qualify as an armed career criminal subject to a mandatory minimum sentence of 15 years in federal custody. The people of Lauderdale County and West Tennessee are safer because of this federal conviction that will remove him from our streets."
This case was investigated by the 25th Judicial Drug Task Force, Ripley Police Department, Lauderdale County Sheriff’s Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys David Biggers and Raney Irwin are prosecuting this case on the government’s behalf.
Local Insurance Agent Convicted of FraudRead the Press Release
Memphis, TN – Following a four-day jury trial in federal court, a Memphis man has been convicted on two counts of wire fraud. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the verdict today.
According to information presented in court, Manzur Mazumder, 49, an insurance agent, started a hedge fund business which defrauded several individuals of their retirement savings. Between 2014 and 2017, Mazumder obtained a total of $360,000 from "M.T.," a resident of Hawaii, "J.T.," a resident of Missouri, and "A.J.," a resident of Memphis.
U.S. Attorney D. Michael Dunavant said, "Fraudulent schemes that steal hard-earned retirement savings from innocent victims represent the very worst betrayals of trust in our financial markets. We are pleased that justice has been achieved on behalf of the victims, and we commend the FBI for their outstanding investigation in this disturbing case.
Mazumder used a large portion of the investors’ funds to pay for personal expenses, including living and travel expenses, a down payment on a condominium, loan payments, debit card charges and overdrafts in several bank accounts. Mazumder day-traded the rest of the investors’ funds in options contracts, resulting in large losses.
"Today’s conviction shows that those who prey on innocent investors and violate the law in order to line their own pockets will be identified, investigated, prosecuted and held accountable for their crimes," said Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "This type of crime degrades the trust investors place in their investment advisors and the financial markets, and the FBI remains steadfast in our commitment to pursue these type of cases to protect the public from such fraud."
This case was investigated by the FBI.
Assistant U.S. Attorneys Dean DeCandia and David Pritchard are prosecuting this case on the government’s behalf.
McKenzie Man Pleads Guilty to Production of Child PornographyRead the Press Release
Jackson, TN – On Tuesday, August 14, 2018, after two days of trial Nathan Adams, 36, pleaded guilty to production and attempted production of child pornography. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the guilty plea today.
The proof presented at trial showed Adams surreptitiously recorded videos of a 13-year-old minor female in various stages of undress, including fully nude. Adams filmed some of the videos from outside the minor’s home filming through a hole in the window blinds. On other occasions, Adams hid the recording device inside the minor’s bedroom or bathroom. Adams was reported to law enforcement after the minor’s mother discovered the recording device and the explicit videos of her daughter.
On the second day of trial, as the videos that Adams recorded were being played for the jury, Adams advised the Court that he wished to plead guilty to the charges against him. Adams faces a mandatory minimum 15 years of imprisonment. Sentencing is set for November 20, 2018 before U.S. District Chief Judge S. Thomas Anderson.
U.S. Attorney D. Michael Dunavant said, “Production of child pornography victimizes, harms, and exploits vulnerable children in a horrific way, and must be met with significant consequences. Under our Project Safe Childhood initiative, the U.S. Attorney’s Office will bring the full resources of the federal government to bear in order to protect children in the Western District of Tennessee.”
This case was investigated by the McKenzie Police Department, the Madison County Sheriff’s Office, and the Federal Bureau of Investigation, and was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals. For more information about PSC, please visit http://www.justice.goc/psc. For more about internet safety education, please visit http://www.justice.gov/psc/resources.
This case was investigated by the McKenzie Police Department; Madison County Sheriff’s Office and the FBI.
Assistant U.S. Attorneys Kasey Weiland and Debra L. Ireland are prosecuting this case on behalf of the government.
Henry County Man Indicted on Federal Drug Trafficking ChargesRead the Press Release
Jackson, TN – Tony Boyd, of Paris, Tennessee was indicted on July 16, 2018, by a federal grand jury for distributing drugs, while being a convicted felon. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the indictment today.
According to the indictment, Boyd is charged with the distributing crack cocaine in the Paris, Tennessee area on six separate occasions. Two transactions occurred within 1,000 feet of the Porter Court Park Playground.
Because of his significant criminal history, if convicted on Counts 1, 3, 4, and 6, Boyd faces up to 20 years imprisonment; $1,000,000 fine and 3 years supervised release. On Counts 2 and 5 he faces up to 30 years imprisonment, $2,000,000 fine and 6 years supervised release. Boyd made his initial appearance in federal court before U.S. Magistrate Judge Edward G. Bryant on August 8, 2018. During a detention hearing on August 14, 2018, the Court ordered the defendant remanded to custody.
U.S. Attorney Dunavant said, "Recidivist drug traffickers create havoc and jeopardize public safety, especially in small rural communities and school zones. Drug dealers can no longer hide in any part of the Western District of Tennessee, and this indictment demonstrates our commitment to remove career drug dealers from our streets."
The case is being investigated by the Metro Crime Unit of Henry County Sheriff’s Office and the Tennessee Bureau of Investigation.
Assistant U.S. Attorney Jerry Kitchen is prosecuting this case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Congress can help us keep career criminals in prisonRead the Press Release
D. Michael Dunavant, U.S. Attorney Western District Tennessee
Guest columnist (The Commercial Appeal)From 1964 to 1980, the violent crime rate tripled in this country. So did robbery. The murder rate doubled. Aggravated assault nearly tripled.
This was an alarming time for communities across this country. In 1984, Congress passed the Armed Career Criminal Act (ACCA), which gave federal prosecutors a powerful new tool to fight the rise in crime. This law helped prosecutors put away the most violent criminals by requiring a minimum 15-year sentence for felons who were caught with a firearm after their third robbery or burglary conviction.
United States Attorneys put this new tool to use, going after violent offenders and putting them in jail. By 1992, violent crime had begun a historic decline. From 1991 to 2014, violent crime fell by half; murder fell by half; aggravated assault fell by 47 percent and robbery by nearly two thirds.
I have no doubt that much of this decline was due to keeping the most violent criminals off the streets for a longer time. Here in West Tennessee, the ACCA has long been a key tool used by prosecutors in our Project Safe Neighborhoods unit, which aggressively targets repeat violent offenders and removes them from our streets.
But in 2015—after 30 years on the books—one line of the ACCA was struck down by the Supreme Court as being too vague. Because of this significant ruling in Johnson v. United States, every federal prosecutor lost one of our most valuable tools.
Now is the time for Congress to fix the ACCA and restore this tool to our toolbox.
More than 1,400 criminals—each convicted of at least three prior felonies—have been let out of jail since the ruling in Johnson. So far, more than 600 have been arrested again. On average, these 600 criminals have reoffended or been arrested three times since 2015. A majority of those who have been out of prison for two years have already been arrested again.
Federal courts in West Tennessee released numerous prisoners due to the Supreme Court’s ruling. Many of these releasees, who were initially prosecuted under the ACCA, have reoffended and violated terms of their supervised release.
For example, one defendant—about a year after being released—was charged with murder and firearm offenses in Shelby County Criminal Court. Another was sentenced to almost two additional years in federal prison after he (again) illegally possessed a firearm. And a third released defendant had his supervised release revoked twice for drug crimes, before being sent back to prison.
These statistics and examples of recidivism are shocking, but they are likely an underrepresentation of these criminals’ illegal activity. Any prosecutor will tell you that criminals rarely get caught on their first offense and that they often make plea bargains in which they admit to one of their lesser crimes rather than to their most serious crime.
Those plea bargains are a big reason why prosecutors need to have ACCA in our toolbox again. When we’re negotiating with a serious, repeat offender, we have a lot more leverage when they’re facing a 15-year sentence than when they’re facing, for example, a 5-year sentence.
I’ve seen time and again that members of violent criminal conspiracies are more likely to cooperate with us and hand over their ringleaders and kingpins when they’re facing long sentences than when they have hope of getting off early. They might serve two years for their bosses, but they won’t serve 30.
Earlier this month, U.S. Attorney General Jeff Sessions spoke in Little Rock and called for Congress to fix ACCA. As he correctly stated, keeping violent career criminals off of our streets “shouldn’t be controversial.” It has been approximately three years since the Supreme Court’s ruling and hundreds of Americans have already been needlessly victimized by released violent felons. How many more will be victimized this year? Or the next? Or the next?
With every day that passes, the likelihood goes up that these repeat-felons will commit more crimes. So this is urgent, and time is of the essence. Congress needs to fix ACCA so that we prosecutors can keep the most violent offenders behind bars and get more criminals to hand over their leaders. One more victim is too many.
U.S. Attorney Dunavant meets with Choctaw Indian Tribal Chief and the Native American Issues Subcommittee to Reduce Crime in Indian CountryRead the Press Release
Memphis, TN – Fighting violent crime and combating the drug epidemic are two of Attorney General Jeff Sessions’s top priorities. The Department is actively addressing violence against women and children in Indian country through partnerships with federal, tribal, state, and local law enforcement, investigating and prosecuting crimes, grant programs, training and technical assistance, and information sharing with tribes. Approximately 85 percent of the Department’s pending Indian country investigations relate to violate crime. The Department’s Office on Violence Against Women (OVW) has funded Tribal Special Assistant U.S. Attorneys (SAUSAs) to enhance prosecution of Indian country cases and strengthen relations and cooperation between federal and tribal law enforcement.
In April of 2018, U.S. Attorney Dunavant was selected to serve on three subcommittees of the Attorney General’s Advisory Committee (AGAC), including the Native American Issues Subcommittee. The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the Attorney General on policy, management and operational issues impacting the offices of the U.S. Attorneys.
The Native American Issues Subcommittee (NAIS) is the oldest subcommittee of the Attorney General’s Advisory Committee and is vital to the Department’s mission in Indian Country to build and sustain safe and secure communities for future generations. The NAIS is made up of U.S. Attorneys from across the United States whose districts contain Indian country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General regarding public safety and legal issues that affect tribal communities. In the Western District of Tennessee, the Mississippi Band of Choctaw Indians maintains a tribal reservation and population in Lauderdale County, just outside of Henning, Tennessee.
"On July 5, 2018, I was honored to meet with U.S. Attorney Mike Hurst, Southern District of Mississippi, and the Mississippi Band of Choctaw Indians Tribal Chief Phyliss Anderson. I look forward to working with Chief Anderson to promote public safety in our Choctaw tribal community in West Tennessee. I also look forward to meeting with my U.S. Attorney colleagues from across the country in Tulsa, Oklahoma next week to discuss crime reduction strategies in Indian Country."
Memphis Man Sentenced to 10 Years in Federal Prison for Selling HeroinRead the Press Release
Memphis, TN – A local man has been sentenced to 120 months in federal prison for possession of heroin with intent to distribute. D. Michael Dunavant, United States Attorney for the Western District of Tennessee announced the sentence today.
According to information presented in court, in June of 2017, defendant Christopher Thompson, 32, was stopped for a routine traffic stop. During the course of that traffic stop, law enforcement discovered heroin, a digital scale, and a large amount of money on the defendant. Evidence proved Thompson was a daily distributor of heroin in the Nutbush area of Memphis.
U.S. Attorney D. Michael Dunavant said, "Our district opioid strategy focuses on those suppliers who are causing addiction, injury, and death by the illegal distribution of heroin. This case demonstrates our commitment to save lives by removing these dangerous drug dealers from our streets. If you are selling poison to our citizens, your days are numbered."
On February 14, 2018, Thompson pleaded guilty to the charges. On August 8, 2018, U.S. District Judge John T. Fowlkes Jr., sentenced Thompson to 120 months in federal prison.
This case was investigated by the Memphis Police Department – Organized Crime Unit.
Special Assistant U.S. Attorney Joseph F. Griffith prosecuted this case on the government’s behalf.
McNairy County Man Convicted of Methamphetamine TraffickingRead the Press Release
Jackson, TN – Following a jury trial in federal court, Michael Jay Harris, 46, of McNairy County, Tenn. was convicted of possessing 98 grams of actual methamphetamine with the intent to distribute. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the conviction today.
According to information presented in court, on February 13, 2017, agents with the McNairy County Narcotics Unit, including officers with the Selmer Police Department and McNairy County Sheriff’s Department, went to the residence of Michael Jay Harris, in the northwestern corner of McNairy County, in Finger, Tenn., to arrest Harris on an outstanding warrant.
While searching the residence, law enforcement discovered Harris was in possession of a bag containing three and a half ounces of ice methamphetamine and marijuana, as well as digital scales and drug paraphernalia. Harris became combative and attempted to fight the officers. A chemist with the Drug Enforcement Administration stated the methamphetamine was more than 97 percent pure, and an agent with the Federal Bureau of Investigation testified it could have been distributed to more than a thousand drug users, based on its purity.
U.S. Attorney D. Michael Dunavant said, "Harris is a career drug offender who was destroying this rural community by his sale of poisonous drugs, and his prior felony convictions have finally caught up with him. Thanks to the great investigative work by our local law enforcement partners at the Selmer Police Department and the McNairy County Sheriff’s Department, he has been held accountable and removed from the community."
Sentencing is set for November 9, 2018, before U.S. District Judge J. Daniel Breen. Harris has a lengthy criminal history, including convictions for trafficking in cocaine and morphine, and assault charges. Based on his prior convictions, he faces up to life imprisonment.
This investigation was conducted by the Selmer Police Department, McNairy County Sheriff’s Department, and the Drug Enforcement Administration.
Assistant U.S. Attorney Matt Wilson prosecuted this case on behalf of the government.
United States Attorney D. Michael Dunavant Announces Beth C. Boswell as Chief of the Criminal Division for the Western District of TennesseeRead the Press Release
Memphis, TN – United States Attorney D. Michael Dunavant is pleased to announce the appointment of Beth C. Boswell as Chief of the Criminal Division for the Western District of Tennessee. This position was vacated when Joseph "Joe" Murphy was appointed as First Assistant United States Attorney.
Beth Boswell is a graduate of Cumberland University, Middle Tennessee State University, and South Texas College of Law. She started her path as a career prosecutor immediately after law school by working for the Harris County District Attorney’s office in Houston, Texas, one of the largest DA offices in the country. During her time there, Beth served as the Deputy Chief of the Misdemeanor Division, supervising and training over 50 Assistant District Attorneys.
Prior to joining the Department of Justice, Boswell served as the Deputy Chief Assistant District Attorney General for the 24th Judicial District Attorneys General Office in Paris, Tennessee for 16 years. During her service there, she was the Senior Trial Prosecutor covering a five-county district for all violent crimes and major drug cases.
U.S. Attorney D. Michael Dunavant said, "Beth Boswell is a talented and dedicated career prosecutor who has extensive experience in all types of cases across West Tennessee. She has demonstrated outstanding leadership in the supervision and training of prosecutors and law enforcement, and I am confident that she will manage the Criminal Division of our office with effectiveness and integrity. I have had the pleasure to serve with Beth as both a state and federal prosecutor, and I am proud to have her lead our Criminal Division to aggressively and fairly carry out the priorities of the Department of Justice in the Western District of Tennessee."
In 2011, she served as a Special Assistant U.S. Attorney for the Western District of Tennessee, responsible for federal criminal narcotics, firearm and Organized Crime and Drug Enforcement Task Force (OCDETF) prosecutions. From 2014 to 2016, Beth was hired as an Assistant United States Attorney in the Organized Crime and Drug Enforcement Task Force unit responsible for prosecuting large-scale, complex narcotics conspiracy cases, including cases connected to drug cartels and criminal street gangs.
Appointed in 2016 as OCDETF Chief/Assistant United States Attorney, Boswell currently supervises five AUSAs. Her responsibilities include managing the OCDETF program by working closely with regional and national counterparts. She also approves indictments, prosecution memoranda, plea agreements, cooperation agreements, and Title III applications and affidavits for the unit. In addition, she handles her own caseload, including violations of the Racketeer Influenced and Corrupt Organizations Act, Violent Crimes in Aid of Racketeering, and long-term investigations into drug trafficking organizations. In November 2017, Beth was designated as the Opioid Coordinator for the Western District of Tennessee.
In 2016, Beth was the recipient of the United States Attorney Award, for outstanding performance and distinguished service to the Western District of Tennessee. Beth has been a regular speaker and instructor in various areas of public safety, and has provided training to prosecutors, law enforcement, correctional officers, medical professionals, and the public.
During her career as a prosecutor, Beth Boswell has tried well over 300 felony cases to verdict, including large narcotics prosecutions, firearms violations, murders, rapes, robberies, and other violent crimes.
Owner of West Tennessee Travel Agency Sentenced to 27 Months Imprisonment for Wire FraudRead the Press Release
Jackson, TN – A West Tennessee woman was sentenced to 27 months in federal prison for wire fraud. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to the charging instrument, Ronda Hopkins Richards, 55, was the owner of Ronda’s Travel Corner, in Jackson, TN. From November 2016 to July 2017, Richards defrauded approximately 100 clients/victims of funds related to their travel. In some cases, Richards enticed the victims to pay cash for a trip that was never booked. In other instances, she booked air travel for victims, but did not provide lodging at the destination for which the victim had pre-paid.
On June 19, 2017, Richards convinced a client to write a $17,172.00 check to Ronda’s Travel Corner for a family trip to Disney World. The trip was scheduled for March 24, 2018, through March 31, 2018. Richards never booked the trip, but instead deposited the check into her own personal account at First South Bank and used the funds for her personal gain.
U.S. Attorney D. Michael Dunavant said: "The defendant’s greed and selfishness has victimized countless innocent citizens who trusted her, and she is now being held accountable for her dishonest and fraudulent conduct. Hopefully, this sentence will achieve justice by deterring other similar criminal conduct, and the restitution order will recover the funds stolen from the victims."
This transaction caused a wire transmission of $17,172.00 to occur in interstate commerce, between the victims’ bank, Greenfield Banking Company, Greenfield, TN, through the Federal Reserve Check Clearing Center located in Atlanta, GA, and then to First South Bank in Jackson, TN. This interstate transmission resulted in the crime of wire fraud. Over 100 of Ronda’s Travel Corner clientele were victims of similar schemes. Because of this scheme, the victims lost a total of approximately $410,280.25.
On August 3, 2017, Richards was interviewed by the Jackson Police Department. She stated that she had fallen behind in her payments and began taking money, did not keep up with what she had taken and "everything spiraled out of control."
Richards pleaded guilty to this charge on February 26, 2018. On August 3, 2018, U.S. District Chief Judge S. Thomas Anderson sentenced Richards to 27 months imprisonment; 3 years supervised release; $100.oo special assessment and restitution in the amount of $410,280.25.
For more information, or if there are other victims who have not made their losses known, please contact the U.S. Attorney’s Office Victim/Witness Coordinator at 901-544-4231.
This case was investigated by the Jackson Police Department and the United States Secret Service.
Assistant U.S. Attorney Victor L. Ivy prosecuted this case on the government’s behalf.
One-Stop Shop Heroin Dealer Sentenced to 190 Months in Federal PrisonRead the Press Release
Memphis, TN – A local man has been sentenced to 190 months in federal prison for possession with intent to distribute heroin; being a felon in possession of a firearm; and possession of a firearm in furtherance of drug trafficking. D. Michael Dunavant U.S. Attorney for the Western District of Tennessee announced the sentence today.
According to information presented in court, in November 2016, Bartlett Police Department, Narcotics Unit, initiated an investigation into the illegal drug trafficking of Randy Martell Robertson, 35, a/k/a/ "Black." The investigation revealed Robertson was selling heroin and various other narcotics out of his apartment as well as two hotel rooms on Lamar Avenue, in Memphis.
U.S. Attorney D. Michael Dunavant said: "Armed drug traffickers present a significant risk to public safety in multiple ways. Targeted enforcement and aggressive prosecution of such dangerous offenders is crucial to combatting addiction and violent crime in our neighborhoods. Robertson was a one-stop shop drug dealer who was willing to protect his product at all costs, and this 15 year sentence brings closures to an important drug trafficking case that helps to restore the safety of the community."
Detectives in the Narcotics Unit orchestrated two controlled purchases from Robertson using a confidential source. A search warrant was later executed on November 29, 2016, at Robertson’s residence and hotel rooms, which yielded 187 grams of heroin, 31 grams of ICE, 28 grams of cocaine, 25 grams of methamphetamine, 19.6 grams of crack, 14 ounces of codeine, 82 hydrocodone pills and 74 oxycodone pills. Three loaded firearms were also found on the scene.
On July 31, 2018, U.S. District Judge Thomas L. Parker sentenced Robertson to 190 months imprisonment followed by four years of supervised release.
This case was investigated by the Bartlett Police Narcotics Unit; Drug Enforcement Agency (DEA) and Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Raney Irwin prosecuted this case on the government’s behalf.
U.S. Attorney’s Office Supports Local Non-Profit Organization through Reentry OutreachRead the Press Release
Memphis, TN – As part of the reentry efforts of the U.S. Attorney’s Office, it is important for us to partner with and support agencies and initiatives that provide services to released felons in order to promote successful reintegration into society, employment opportunities, and the ability to lead productive, law-abiding lives. One of those organizations in the Memphis community is Lifeline to Success, led by Executive Director DeAndre D. Brown, Sr. The U.S. Attorney’s Office partners with Lifeline to Success and Pastor Brown in several different reentry initiatives. For more information about the organization, please visit https://www.lifeline2success.org.
For the fourth year, Lifeline to Success is teaming up with Men’s Wearhouse to sponsor and promote a suit donation drive, in order to provide suits for persons who may be in need of appropriate attire for job interviews, reintegration into social settings, and other opportunities after release from custody.
The U.S. Attorney’s Office wants to encourage support for this program, and the attorneys and staff in our office are participating by donating several suits to the drive. We have also encouraged our partners in the Federal Reentry Council, made up of representatives from the Federal Public Defender’s Office, the Federal Bureau of Prisons, U.S. Probation Office, and U.S. Pre-trial Services Office to participate and donate to the suit drive.
U.S. Attorney D. Michael Dunavant said: "The mission of the Department of Justice is to reduce crime by using all available strategies and resources. One of the best ways to reduce recidivism is to provide meaningful support and resources to offenders upon release so that they will have the best chance of successful reentry into the community. The U.S. Attorney’s Office for the Western District of Tennessee is committed to reentry programs that impact public safety in a positive way, and we hope that these suits will facilitate success for the reentrants."
Today, we invited Pastor DeAndre Brown and his Lifeline to Success team members to the U.S. Attorney’s Office to collect the donated suits, to publicly highlight the program, and to challenge other professional offices across Memphis and Shelby County to support and donate to this worthy cause.
Reported Gun Crimes Down Significantly During First Half of YearRead the Press Release
Reported crimes with guns were down significantly during the first half of this year compared to last year in the city of Memphis and unincorporated parts of Shelby County, according to figures from the Project Safe Neighborhoods G.U.N. (Government United for Non-Violence) Unit.
From January through the end of June, there were 2,405 reported crimes with guns compared to 2,840 for the same period in 2017 – a 15.3 percent drop. The number is also 8.4 percent less than the 2,625 reported gun crimes in 2016.
Reducing gun crimes is a major focus of the current Operation: Safe Community crime plan, the development of which was spearheaded by the Memphis Shelby Crime Commission. Crime Commission president Bill Gibbons noted a number of objectives in the plan geared toward gun crime reduction, including:
- Vigorous enforcement of tough federal gun laws as part of Project Safe Neighborhoods which is being led by the U.S. Attorney’s office;
- Enactment of tougher state sentences for felons in possession of firearms – which was accomplished in 2017 – coupled with strong enforcement by the District Attorney’s office;
- With the goal of changing behavior, communicating the consequences of committing gun crimes through the FED UP media campaign;
- Enhancing the staff of the Multi-Agency Gang Unit in order to more effectively investigate gang-related crimes and prevent such crimes from occurring; and
- Ramped up data-driven deployment of law enforcement resources.
Since in office, U.S. Attorney Mike Dunavant has made prosecution of gun crimes in the federal system a top priority.
According to Dunavant, "Project Safe Neighborhoods (PSN) is a proven violent crime reduction strategy that works, and is now reinvigorated with additional resources and commitment from our partners at the ATF, Memphis Police Department, Shelby County Sheriff’s Office, and the Shelby County District Attorney’s Office. Since October, 2017, the U.S. Attorney’s Office has increased the number of federal firearms cases filed by over 59%, and the number of defendants charged with firearms offenses has increased over 73%. These efforts provide targeted prosecution of the worst-of-the-worst offenders in order to enhance public safety in Memphis by removing guns from the hands of dangerous people, and removing violent offenders from our communities."
Dunavant added, "These sustained decreases in reported gun crimes and all major violent crime categories is encouraging, and shows that our return to proven enforcement policies is working. Putting the right people in prison upholds the rule of law, deters criminal conduct with a strong message of significant consequences, and makes us all safer. The Department of Justice is open for business, and we are FED UP with gun crime in Memphis. Gun Crime is Max Time."
The reduction in reported crimes with guns is consistent with the reduction in reported violent crimes, the details of which were released earlier this month.
During the first half of this year, reported violent crimes were down 8.1 percent in the city of Memphis compared to last year and down 6.4 percent countywide, according to preliminary figures from the Tennessee Bureau of Investigation. The reduction occurred in all four major categories – murders, rapes, robberies, and aggravated assaults.
1 Reported gun crime incidents in city of Memphis and unincorporated parts of Shelby County.
Source: Project Safe Neighborhoods G.U.N. Unit2 A 8.4 percent decrease compared to 2016 and a 15.3 percent decrease compared to 2017.
Local man sentenced to 140 months imprisonment for conspiracy to distribute and distribution of methamphetamineRead the Press Release
Memphis, TN – A local man has been sentenced to 140 months imprisonment for conspiracy to possess with intent to distribute and distribution of methamphetamine. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the sentence today.
According to information presented in court, beginning in 2016 through August 2017, investigators with Alcohol, Tobacco, Firearms and Explosives (ATF) and the Multi-Agency Gang Unit (MGU) began investigating a drug trafficking organization distributing ecstasy pills, known as MDMA and methamphetamine in the Western District of Tennessee. William Green a/k/a "Mac Tuddy," 43, was identified as the source of supply for the ecstasy pills containing methamphetamine and MDMA.
U.S. Attorney D. Michael Dunavant said: "Methamphetamine continues to be a significant problem in West Tennessee, and ecstasy is a dangerous concoction that causes addiction and death at alarming rates. We commend the ATF and MGU for their outstanding work to take down this career drug offender."
During the investigation, agents used confidential sources who made recorded phone calls to meet Green and arrange to purchase ecstasy pills. In total, Green was held responsible for the distribution of over 104 grams of methamphetamine and 2.5 kilograms of MDMA, known as ecstasy pills. Based on Green’s record it was determined that he was a career offender.
On July 20, 2018, Green pleaded guilty to this charge and was sentenced by U.S. District Judge Sheryl H. Lipman to serve 140 months in federal prison.
This case was investigated by the Alcohol, Tobacco, Firearms and Explosives (ATF) and the Multi-Agency Gang Unit (MGU).
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on the government’s behalf.
Texas man sentenced to 225 months imprisonment for conspiracy to distribute cocaine while on federal supervised releaseRead the Press Release
Memphis, TN – A Texas man has been sentenced to 225 months imprisonment for conspiracy to possess with intent to distribute cocaine while on federal supervised release. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, in 2016, investigators with the Drug Enforcement Administration investigated a drug trafficking organization distributing multiple kilograms of cocaine in the Western District of Tennessee. Rafael Garza a/k/a "Poppy", 46, was identified as the source of supply for this organization. Utilizing tractor trailers, this organization would ship kilograms of cocaine from Brownsville, Texas to Memphis. Based upon a conservative estimate, this organization was responsible for the distribution of at least 50 kilograms but less than 150 kilograms of cocaine in the Memphis area.
U.S. Attorney D. Michael Dunavant said: "Disruption and dismantlement of drug trafficking organizations is a crucial mission of this office, in order to stop the supply of deadly narcotics into West Tennessee. This sentence demonstrates our commitment to impose significant consequences on such recidivist drug dealers."
Garza pleaded guilty to this offense on April 12, 2018. On July 26, 2018, U.S. Senior District Judge Samuel H. Mays sentenced Garza to 225 months imprisonment, which included a sentence for violation of federal supervised release out of Brownsville for possession with intent to distribute marijuana.
This case was investigated by the Drug Enforcement Administration.
Assistant U.S. Attorneys Jerry Kitchen and Michelle Kimbril-Parks prosecuted this case on the government’s behalf.
Former Physician’s Office Employee Sentenced in Fraud SchemeRead the Press Release
Memphis, TN – Gloria Harris, 56, of Memphis was sentenced to serve 64 months in federal prison on bank fraud charges arising from her theft of approximately $292,500 from her former employer, United States Attorney D. Michael Dunavant announced today.
Harris, a former data entry clerk for Crescent Medical Corporation, was indicted by a federal grand jury in December of last year, and pled guilty in April to allegations that she fraudulently obtained $292,500 between January 2016 and March 2017. The indictment alleged that Harris stole checks payable to Crescent and deposited them to bank accounts at Trustmark Bank and Suntrust Bank which she had fraudulently opened in the name of Crescent without the knowledge of Crescent’s owner, Dr. Ashan Kathawala.
U.S. Attorney D. Michael Dunavant said: "Fraudulent schemes and crimes of dishonesty do not pay, and will be exposed. We are pleased to achieve justice for the victim in this case."
In addition to her prison sentence, United States District Judge Sheryl H. Lipman ordered Harris to serve a term of five years supervised release following her release from custody and to pay restitution in the total amount of $292,500 to Trustmark, Suntrust and Crescent.
This case was investigated by the United States Secret Service Economic Crimes Task Force.
Assistant U.S. Attorney Carroll L. André III is prosecuting this case on the government’s behalf.
Memphis Man Faces Potential Life Sentence for Sex Trafficking ConvictionsRead the Press Release
Memphis, TN – After a three-day jury trial in federal court, Antonio Hawkins, 41, was convicted of multiple counts of sex trafficking. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the guilty verdict today.
According to information presented in court, in April 2016, Antonio Hawkins took three women from New Orleans to Houston to put the women out on the prostitution track. While in Houston, Hawkins picked up a fifteen-year-old runaway, and put her on the track as well. Hawkins subsequently brought them to Memphis to work. All of the women, including the minor (who is now seventeen), testified at trial that Hawkins threatened to, and did, use violence to keep them from leaving him. The women testified that Hawkins struck them, pointed a gun at them and fired warning shots, and once even used a hot hair iron to intimidate the women into doing as he instructed.
U.S. Attorney D. Michael Dunavant said: "Human trafficking of minors and adults for commercial sex purposes is an unconscionable crime that must be met with severe consequences. We commend the FBI for their outstanding investigation of these heinous crimes, and we are pleased to achieve justice for the victims in this disturbing case."
Sentencing is set for Friday, November 2, 2018 before U.S. District Judge Sheryl H. Lipman. Hawkins faces a minimum sentence of 15 years imprisonment and a maximum of life.
This case was investigated by the Federal Bureau of Investigation as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals, federal, state and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc.
Assistant U.S. Attorneys Kasey Weiland and Deb Ireland prosecuted this case on the government’s behalf.
Former Law Firm Office Manager Pleads Guilty to Filing False Tax ReturnsRead the Press Release
Memphis, TN – Misty West, 41, of Olive Branch, Mississippi, appeared before U.S. District Judge Thomas L. Parker and entered a guilty plea to filing false tax returns. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the guilty plea today.
According to a superseding indictment returned by the federal grand jury in February of this year, West, the former office manager, bookkeeper and paralegal at the Fowler Law Firm, engaged in a scheme to defraud the firm and its owner, Charles Wesley Fowler, of more than $400,000 between August 2011 and July 2016.
U.S. Attorney D. Michael Dunavant said: "This defendant victimized her employer and defrauded the United States by using her position of trust to commit crimes of dishonesty. Financial fraud does not pay, and this office will aggressively prosecute these cases to hold offenders accountable and provide restitution to the victims and the government."
The superseding indictment also alleged that West filed false tax returns for calendar years 2013-2015 by substantially underreporting her total income for those years. West entered her guilty plea to those charges.
As part of a written plea agreement filed with the court, West agreed to pay restitution to Fowler’s estate and to the Internal Revenue Service.
West faces a maximum penalty of three years imprisonment, $100,000 fine and one year supervised release on each of the three counts of filing false tax returns. Sentencing is scheduled on October 25, 2018, before U.S. District Judge Thomas L. Parker.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigations Division.
Assistant U.S. Attorneys Carroll L. Andre´ III and Lorraine Craig are prosecuting this case on the government’s behalf.
Gibson County Man on Supervised Release Indicted on Child Exploitation ChargesRead the Press Release
Jackson, TN – A Gibson County man has been indicted on child exploitation charges. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictment today.
A Humboldt man on federal supervised release was indicted today on child exploitation charges. A grand jury seated in the Eastern Division of the Western District of Tennessee returned a two-count indictment charging that on June 14, 2018, Finis Ewin Hill, 66, known as "Pete" Hill, used the internet to attempt to entice a minor to engage in criminal sexual activity. Hill is also charged with traveling from Tennessee to Mississippi on June 16, 2018, to meet with a person he believed to be under sixteen and engage in illicit sexual activity.
In 2005, Hill was convicted of being a felon possession of a firearm, and sentenced to serve 221 months in prison. He was released from federal custody and placed on supervised release on January 18, 2018. A petition to revoke Hill’s supervised release has also been filed.
U.S. Attorney D. Michael Dunavant said:" Let this indictment serve notice on those who use the internet and electronic means to exploit, abuse, and victimize minor children: You cannot hide, we will track you down, and you will be held accountable for such disturbing and predatory criminal conduct."
If convicted, on count one of the indictment Hill faces not more than 30 years in federal prison, $250,000 fine and supervised release of five years up to life. On count two of the indictment, Hill faces 10 years up to life imprisonment, five years supervised release and $250,000 fine.
This case was investigated by the Milan Police Department and the Federal Bureau of Investigation as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.
Assistant U.S. Attorneys Debra Ireland and Hillary Parham are prosecuting this case on the government’s behalf.
U.S. Attorney Announces the Appointment of the District Election Officer for the Western District of TennesseeRead the Press Release
Memphis, TN – United States Attorney D. Michael Dunavant announced today that Assistant United States Attorney (AUSA) Reagan M. Taylor will lead the efforts of his office in connection with the Justice Department’s Election Day Program for the upcoming August 2, 2018, primary election. AUSA Taylor has been appointed to serve as the District Election Officer (DEO) for the Western District of Tennessee, and in that capacity is re-sponsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Dunavant said, "Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process."
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on August 2, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Dunavant stated that AUSA Taylor will be on duty in this District while the polls are open. She can be reached by the public at the following telephone number (901) 544-4231.
In addition, the FBI will have special agents available in each field office and resi-dent agency throughout the country to receive allegations of election fraud and other elec-tion abuses on Election Day. The local FBI field office can be reached by the public at (901) 747-4300.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at (800)-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http:www.justice.gov/crt/com-plaint/votintake/index.php.
United States Attorney Dunavant said, "Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that infor-mation available immediately to my Office, the FBI, or the Civil Rights Division."
Memphis Man sentenced to 15 years imprisonment for being a Convicted Felon in Possession of a FirearmRead the Press Release
Memphis, TN – A Memphis man has been sentenced to 15 years in federal prison for being a convicted felon in possession of a firearm. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on August 4, 2017, Memphis Police Department officers attempted to conduct a traffic stop on a vehicle driven by defendant Ladarius Porter, 27. When the vehicle stopped, Porter exited and ran from officers through a residential area. After the foot chase that lasted several minutes, officers eventually caught up to and detained Porter.
Officers retraced the path that Porter had run and located a loaded firearm he discarded during his flight. Porter pled guilty to possessing the firearm as a convicted felon. In 2009, the defendant had been previously convicted of several counts of aggravated and especially aggravated robbery.
On July 13, 2018, U.S. District Judge Thomas L. Parker sentenced Porter to 15 years in federal prison as an armed career criminal.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
U.S. Attorney D. Michael Dunavant said: "Our PSN reinvigoration efforts provide targeted prosecution of the worst of the worst violent offenders in order to enhance public safety in Memphis. This significant sentence removes an armed career criminal from the community, and sends a strong message that we will no longer tolerate this lawless behavior. We are FED UP with gun crime in Memphis, and will continue to aggressively prosecute prohibited and dangerous offenders with firearms. Gun Crime is Max Time."
Assistant U.S. Attorney Elizabeth Rogers prosecuted this case on behalf of the government.
Former Fedex Employees have been Indicted for Stealing Mail from Religious OrganizationsRead the Press Release
Memphis, TN – Three Memphis women have been indicted with stealing mail intended for religious organizations throughout the United States. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictments today.
According to the indictments, throughout 2015, Tiara Williams, Crystal Berry and Kimberly Smith worked in the same area in the Memphis FedEx Hub. They targeted mail pieces intended for religious organizations since there was a strong likelihood that they contained U.S. currency. The employees would search through mail, remove some of the contents contained therein and smuggle items off the premises.
U.S. Attorney D. Michael Dunavant said: "This office takes very seriously our duty to protect the sanctity and security of the United States Postal Service and the U.S. Mail. We work very closely with the United States Postal Inspection Service to defend the nation’s mail system from illegal or dangerous use by mail theft, mail fraud and prohibited mailings; and to ensure public trust in the mail. These indictments show our collective commitment to hold accountable any persons who violate that sanctity and victimize innocent citizens for their own selfish gains."
David M. McGinnis, the Inspector In Charge of the Charlotte Division of the United States Postal Inspection Service, stated, "The Postal Inspection Service takes great pride in protecting postal customers from criminal activity related to the U.S. mail. Postal Inspectors will continue to vigorously investigate and seek criminal prosecution of those who prey on postal customers."
The maximum penalty for mail theft is no more than 5 years in federal prison and a $250,000 fine. Judge Thomas L. Parker, Judge John T. Fowlkes Jr. and Judge Sheryl H. Lipman will preside over these cases respectively.
The case was investigated by the United States Postal Inspection Service in conjunction with FedEx security.
Assistant U.S. Attorney Damon Keith Griffin is prosecuting the case on the government’s behalf.
Convicted Felon who Fled from Police Pleads Guilty to Drug and Gun ChargesRead the Press Release
Memphis, TN – Joseph Hamilton, 30, has pleaded guilty to federal charges of being a felon in possession of a firearm and possession of marijuana with intent to distribute. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the guilty plea today.
According to information presented in court, on October 27, 2017, Memphis Police observed Hamilton driving a silver Infiniti G35 eastbound on East Shelby Drive with a license plate registered to a different vehicle. The license plate also had a 2018 decal that belonged to a different plate. A traffic stop was then initiated. The defendant did not have a driver’s license, but provided his social security number to the officer. After the officer determined that the defendant’s license was suspended, the defendant was instructed to exit the vehicle. The defendant slammed the door to his car, made a "U-turn," and sped away. The officer had to move to avoid being struck by the vehicle. Hamilton then disregarded a traffic signal and crashed his vehicle with another vehicle. The driver of the other vehicle was transported to the hospital in non-critical condition.
After the crash, Hamilton ran into a wooded area with a red and white backpack. While the officer was chasing the defendant, the defendant tripped and fell. The officer caught up with the defendant and arrested him. The defendant spontaneously stated that he ran because he did not want to go to jail for the weed and gun.
While searching the backpack, officers recovered a large bag of marijuana and two mason jars containing small baggies of marijuana, totaling approximately 100 grams. An opened box of sandwich baggies and a marijuana grinder were also recovered. Officers recovered $306.73 on Hamilton and a Ruger .45 caliber pistol from the driver’s side floorboard of the vehicle. Hamilton was also a convicted felon at the time of this offense.
U.S. Attorney D. Michael Dunavant said: "Convicted felons who possess firearms in connection with drug distribution are inherently dangerous individuals. This conviction and potential sentence will remove a violent offender from the streets, and will protect public safety. We are FED UP with gun crime in Memphis, and will continue to aggressively prosecute prohibited and dangerous offenders with firearms. Gun Crime is Max Time."
On July 11, 2018, Hamilton pleaded guilty to being a felon in possession of a firearm and possession of marijuana with the intent to distribute. He faces a minimum of 15 years up to life imprisonment. The defendant still has an unrelated murder charge pending in Division 7 of Shelby County’s Criminal Court stemming from his alleged shooting at a Whitehaven McDonald’s, resulting in the murder of one individual and the serious injury to another.
Hamilton is scheduled to be sentenced on October 11, 2018, before U.S. District Judge Thomas L. Parker.
The Multi-Agency Gang Unit investigated this case.
Assistant U.S. AttorneyMarques Young and Special Assistant U.S. Attorney Bryce Phillips are prosecuting this case on the government’s behalf.
Convicted Felon Sentenced to 100 Months Imprisonment for Possessing Stolen FirearmRead the Press Release
Memphis, TN – Louis Driver, 43, of Lauderdale County, has been sentenced to 100 months in federal prison for being a convicted felon in possession of a firearm and possession of a stolen firearm. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on January 27, 2017, Lauderdale County Sheriff’s Office received information that Louis Driver was involved in a burglary in which several firearms were stolen. Law enforcement conducted an investigation that led them to Driver’s residence. After receiving consent to search the residence, investigators located Driver in a bedroom. Upon searching the bedroom, investigators located a Heckler & Koch .45 caliber pistol, loaded with 12 rounds of ammunition, which was stolen during the burglary. Driver, who was on parole at time he committed this offense, admitted to possessing the firearm.
U.S. Attorney D. Michael Dunavant said: "This defendant has a long criminal history of felony and misdemeanor convictions involving violence, drug possession, and property damage, and was on parole for felony drug offenses when he was found in possession of a stolen firearm from a home burglary. Mr. Driver has devoted his adult life to a career of criminal conduct in Lauderdale County, and that prior history has finally caught up with him. This sentence removing him from the community for more than 8 years will make Lauderdale County and West Tennessee a safer place."
This case was investigated by the Lauderdale County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
U.S. Attorney Dunavant Announces Joseph “Joe” Murphy as First Assistant United States Attorney, Western District of TennesseeRead the Press Release
Memphis, TN – United States Attorney Dunavant is pleased to announce the appointment of Joseph "Joe" Murphy as First Assistant United States Attorney, Western District of Tennessee. This position was vacated when Lawrence J. Laurenzi retired in May 2018 after an extensive career with the Department of Justice.
Joe Murphy is a graduate of Lambuth College and the Cecil C. Humphreys School of Law at the University of Memphis. Since 1989 he has served as an Assistant United States Attorney in the Memphis office of the United States Attorney for the Western District of Tennessee. Murphy served as the office’s Criminal Chief, supervising 28 Assistant United States Attorneys who investigate and prosecute criminal cases in the Memphis office and 10 support staff. Prior to being named the office’s Criminal Chief in June of 2011, Murphy served as Chief of the office’s Organized Crime and Drug Enforcement Task Force for three years. In that position he was responsible for supervising a team of attorneys and support personnel who investigated and prosecuted violations of federal drug, money laundering, and firearms laws committed by both individuals and organized criminal groups. Between 1991 and 2007, Murphy served as a line assistant in both the office’s criminal division and drug task force.
U.S. Attorney D. Michael Dunavant said: "With over 29 years’ experience in the United States Attorney’s Office, including service as Criminal Division Chief and OCDETF Chief, Joe Murphy is well prepared to assume the duties of First Assistant United States Attorney. I am pleased to have Joe’s wise counsel, and I am confident that he will lead and manage the office with the highest degree of effectiveness and integrity. I look forward to continuing to work with him to pursue and carry out the priorities of the Department of Justice in the Western District of Tennessee."
During his career with the Justice Department Murphy has tried approximately 125 felony cases to verdict in U.S. District Court. These cases included prosecutions of health care professionals for illegally distributing controlled substances; mail and wire fraud cases; and theft cases involving pension funds and interstate shipments. Murphy has also represented the government in over 200 cases litigated before the United States Court of Appeals for the Sixth Circuit, and he has argued approximately 48 cases before that court.
A Memphis resident, Murphy has been married to Sandy Murphy for 29 years. He has two children, both of whom currently attend graduate school at the University of Memphis. Active in community and legal affairs, Murphy has served on the Executive Committees of the Tennessee Bar Association’s Criminal Justice and Environmental Law Sections, is a member of the Leo Bearman, Sr. Inn of the American Inns of Court, and has served as a volunteer with the Chickasaw Council of the Boy Scouts of America.
Perry County Man Sentenced for Filing False Federal Income Tax ReturnsRead the Press Release
Jackson, TN – Joel Anthony Bunch, 41, of Clifton, Tennessee, has been sentenced to 12 months and a day imprisonment for filing false Federal Individual Tax Returns. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on November 20, 2017, Bunch pled guilty to one count of filing a false U.S. Individual Income Tax Return for tax year 2013. At that time, Bunch owned Bunch Forest Products, located in Clifton, Tennessee, and was the sole person responsible for the business record keeping. Bunch caused his paid tax return preparer to underreport his gross receipts for 2013 by depositing business income into his personal bank account, cashing income checks, and knowingly providing incomplete and inaccurate information to his paid preparer. As a result, Bunch’s 2013 gross receipts were underreported by $27,371, resulting in an additional tax due and owing of $8,361.
Today’s sentencing is based on Bunch underreporting gross receipts on U.S. Corporation Income Tax Returns for the tax years 2010 through 2013, as well as underreporting gross receipts on his Schedule C, Profit or Loss from Business on his U.S. Individual Income Tax Returns for tax years 2010 through 2013, in the amount of $555,572, which is outlined in an 8-count indictment handed down by a federal grand jury in Jackson on February 21, 2017, resulting in unreported corporate and individual income tax of $129,527.
U.S. Attorney D. Michael Dunavant said: "Protection of the United States Treasury is a core value and critical mission for this office and the Department of Justice. Income tax evasion and fraud strike at the very heart of our federal government, and will not be tolerated."
On July 2, 2018, Senior U.S. District Judge S. Thomas Anderson sentenced Bunch to 12 months and a day in federal prison followed by one year of supervised release. He was also ordered to pay $129,527 in restitution to the IRS, a result of his failing to pay taxes on all of his income.
This case was investigated by the Internal Revenue Service, Criminal Investigation.
Assistant U.S. Attorney Matthew J. Wilson prosecuted the case for the government.
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Las Vegas man sentenced to 15 years in federal prison for distributing over 100,000 oxycodone pillsRead the Press Release
Memphis, TN – Gabriel Rounds, 36, of Las Vegas, Nevada, was sentenced to 188 months imprisonment for his role in distributing more than 100,000 oxycodone pills in the Memphis area and conspiracy to knowingly conduct financial transactions affecting interstate commerce, known as money laundering. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on or about May 9, 2013, Las Vegas Postal Inspectors began an investigation into mailings of illegal narcotics destined for the Memphis area. During the course of the investigation, several U.S. mail parcels containing oxycodone pills were seized.
U.S. Attorney D. Michael Dunavant said: "This office continues our fight against the supply and flow of dangerous prescription opioids into the Western District of Tennessee. This disturbing case demonstrates the lengths to which drug dealers will go to profit from addiction and suffering, and this significant sentence demonstrates our resolve to punish and deter such brazen interstate criminal conduct."
Postal Inspectors were able to identify phone numbers, surveillance images, vehicle registrations and other information that identified Gabriel Rounds and Magan Hall sending the packages to various addresses and recipients residing in Memphis. Based upon USPIS findings a search warrant was issued for the residence of Rounds and Hall. Hall admitted to helping Rounds package the pills in Express Mail envelopes.
On April 26, 2016, Las Vegas Postal Inspectors were advised by a postal employee that an unidentified female was attempting to mail USPS Express Mail packages. The USPS employees advised the female came in weekly and sent express parcels to Memphis. A package was examined by the Postal Inspectors and appeared to have characteristics of parcels containing controlled substances and/or proceeds. Due to the nature of the subject parcel, it was removed from the mail stream for examination.
On April 27, 2016, the package was further examined by a narcotics detective K-9 who alerted to the odor of narcotics inside the parcel. On May 2, 2016, a search warrant was executed on the parcel and revealed 456 oxycodone pills being concealed inside M&M’s candy bags.
On June 15, 2018, U.S. District Judge Sheryl H. Lipman sentenced Rounds to 188 imprisonment, to be followed by six years of supervised release.
This case was investigated by the United States Postal Inspectors Office, Las Vegas Postal Inspectors Office, Shelby County Sheriff’s Office and the Tennessee National Guard Counter Narcotics Team.
Assistant U.S. Attorney Jerry Kitchen prosecuted this case on the government’s behalf.
U.S. Attorney Announces the Indictment of Sixteen Individuals on Federal Firearms Charges; Ten are Convicted FelonsRead the Press Release
Jackson, TN - On June 11, 2018, a federal grand jury indicted sixteen individuals for various federal violations originating from criminal conduct in eight counties across West Tennessee. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictments today. As charged in the indictments, ten of the defendants are prohibited by federal firearms laws from possessing firearms.
Several defendants charged in this series of indictments are alleged to be convicted felons. Under federal law, it is illegal for an individual convicted of a felony to possess a firearm. This is a violation of Title 18, United States Code, § 922(g)(1). A violation of this section is punishable by a term of up to 10 years imprisonment, a fine of up to $250,000, and a term of supervised release of no less than two years. The penalty for a violation of § 922(g)(1) is enhanced when a defendant has a prior criminal record that includes three convictions for a violent felony or serious drug offenses. Under this enhanced sentencing provision, the defendant is subject to a mandatory minimum statutory sentence of at least 15 years imprisonment, with a maximum sentence of life imprisonment.
It is also against federal law to possess or use and carry a firearm during or in relation to a crime of violence or a drug trafficking crime. This is a violation of 18 USC § 924(c). A violation of this section is punishable by a mandatory minimum sentence of at least five years imprisonment to a maximum of life imprisonment.
U.S. Attorney D. Michael Dunavant said: "Violent crime reduction is the top priority of this office and the Department of Justice. Our strategy is to remove firearms from the hands of dangerous and prohibited people, and to remove those violent offenders from our communities. These indictments will impose significant consequences for illegal possession of firearms, and will make our district safer."
Christopher Bills, 25 of Bolivar, Tenn, was charged with being a convicted felon in possession of a firearm which had been shipped/transported in interstate commerce.
Jerrod Jennings 31, of Jackson, Tenn, was charged with being a convicted felon and unlawful user of a controlled substance in possession of a firearm, which had been shipped/transported in interstate commerce; and possession of a firearm during commission of a drug trafficking crime.
Mark Lockhart, 40, of Jackson, Tenn, was charged with being a convicted felon in possession of a stolen firearm, which had been shipped/transported in interstate commerce.
Kenneth Mitchell Fongers, 52, of Milan, Tenn, was charged with transporting a minor with intent to engage in unlawful sexual activity.
Carl Clarke, 28, of Dyersburg, Tenn, was charged with being a convicted felon in possession of a firearm which had been shipped/transported in interstate commerce.
Dexter Sowell, 34, of Jackson, Tenn, was charged with being a convicted felon in possession of a firearm which had been shipped/transported in interstate commerce.
William Martin Greene, 50, of Jackson, Tenn, was charged with being a convicted felon in possession and disposing of a firearm which had been shipped/transported in interstate commerce.
Charles Curry, 26, of Jackson, Tenn, was charged with being a convicted felon in possession of a firearm which had been shipped/transported in interstate commerce.
Houston Crafton, 22, of Jackson, Tenn, was charged with being a convicted felon in possession of a firearm which had been shipped/transported in interstate commerce.
Dacarlos Watkins, 37, of Jackson, Tenn, was charged with being a convicted felon in possession of a firearm which had been shipped/transported in interstate commerce.
Demarlon Gardner, 33, of Brownsville, Tenn, was charged with being a convicted felon in possession of a firearm which had been shipped/transported in interstate commerce.
An additional five indictments are under seal. The United States also seeks criminal forfeiture of any proceeds related to the crimes.
The charges and allegations contained in the indictments are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Two Memphis Men Sentenced to a total of 20 Years in Federal Prison for Distributing HeroinRead the Press Release
Memphis, TN – Two Memphis men have been sentenced to a total of 244 months imprisonment for distributing heroin. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, in August and September of 2017, Bartlett Police determined Mark Keith to be a heroin dealer in the Memphis area. After an investigation, Keith was arrested with a substantial amount of heroin and methamphetamines on his person. On October 3, 2017, a federal grand jury returned an indictment alleging possession with intent to distribute heroin and methamphetamines both in violation of Title 21 United States Code 841 (a)(1).
Between June and July of 2017, Bartlett Police received information that Frederick Hamilton was dealing heroin in North Memphis. After an investigation from law enforcement, Hamilton was arrested while trying to flee and found with heroin on his person. On November 21, 2017, a federal grand jury returned an indictment alleging possession with intent to distribute heroin in violation of Title 21 United States Code 841 (a)(1).
U.S. Attorney D. Michael Dunavant said: "Heroin is a deadly drug that is destroying countless lives across the country and right here in West Tennessee. Drug dealers who sow addiction and death into our communities by selling this poison will reap long prison sentences for their selfish and lawless conduct."
Both men pleaded guilty. On June 21, 2018, United States District Judge John T. Fowlkes Jr., sentenced both Keith and Hamilton; Keith to 144 months imprisonment and Hamilton 100 months in federal prison.
These cases were investigated by the Bartlett Police Department and the Drug Enforcement Administration.
Special Assistant U.S. Attorney Joseph F. Griffith prosecuted these cases on the government’s behalf.
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Eight Arrested in Africa-Based Cybercrime and Business Email Compromise ConspiracyRead the Press Release
Memphis, TN – In accordance with the Justice Department’s recent efforts to disrupt business email compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens, the Department announced Operation Keyboard Warrior, an effort coordinated by United States and international law enforcement to disrupt online frauds perpetrated from Africa. Eight individuals have been arrested for their roles in a widespread, Africa-based cyber conspiracy that allegedly defrauded U.S. companies and citizens of approximately $15 million since at least 2012.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney D. Michael Dunavant of the Western District of Tennessee, Executive Assistant Director David T. Resch of the FBI and Acting Special Agent in Charge William C. Hoffman of the FBI Memphis Field Office, made the announcement today.
Five individuals were arrested in the United States for their roles in the conspiracy including Javier Luis Ramos Alonso, 28, a Mexican citizen residing in Seaside, California; James Dean, 65, of Plainfield, Indiana; Dana Brady, 61, of Auburn, Washington; Rashid Abdulai, 24, a Ghanaian citizen residing in the Bronx, New York, who has been charged in a separate indictment; and Olufolajimi Abegunde, 31, a Nigerian citizen residing in Atlanta, Georgia. Maxwell Atugba Abayeta aka Maxwell Peter, 26, and Babatunde Martins, 62, of Ghana and Benard Emurhowhoariogho Okorhi, 39, a Nigerian citizen who resides in Ghana, have been arrested overseas and are pending extradition proceedings to face charges filed in the Western District of Tennessee.
The indictment also charges Sumaila Hardi Wumpini, 29; Dennis Miah, 34; Ayodeji Olumide Ojo, 35, and Victor Daniel Fortune Okorhi, 35, all of whom remain at large. Abegunde had his detention hearing today before U.S. District Court Judge Sheryl H.
Lipman of the Western District of Tennessee, who ordered him detained pending trial, which has been set for October 9, 2018.
"The defendants allegedly unleashed a barrage of international fraud schemes that targeted U.S. businesses and individuals, robbing them to the tune of approximately $15 million," said Acting Assistant Attorney General Cronan. "The Department of Justice will continue to work with our international partners to aggressively disrupt and dismantle criminal enterprises that victimize our citizens and businesses."
U.S. Attorney D. Michael Dunavant said: "Frauds perpetrated through the Internet cause significant financial harm to businesses and individuals in our District and throughout the United States. Because those committing Internet fraud hide behind technology, the cases are difficult – but not impossible – to investigate. We will continue to deploy our resources to take on these difficult cases and seek justice for citizens harmed by Internet scammers."
"The devastating effects that cybercrime and business email compromise have on victims and victim companies cannot be understated, and the FBI has made it a priority to work with our law enforcement partners around the world to end these fraud schemes and protect the hard-earned assets of our citizens," said William C. Hoffman, Acting Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "These charges are the result of the diligence, hard work and tenacity of the best and smartest investigators and prosecutors, to overcome the challenges faced when dealing with sophisticated efforts to hide criminal activity that involves numerous people in multiple countries, and should send a signal that criminals will not go undetected and will be held accountable, regardless of where they are."
The indictment was returned by a grand jury in the U.S. District Court for the Western District of Tennessee on Aug. 23, 2017, and charges the defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, conspiracy to commit computer fraud, and aggravated identity fraud.
The indictment alleges that the Africa-based co-conspirators committed, or caused to be committed, a series of intrusions into the servers and email systems of a Memphis-based real estate company in June and July 2016. Using sophisticated anonymization techniques, including the use of spoofed email addresses and Virtual Private Networks, the co-conspirators identified large financial transactions, initiated fraudulent email correspondence with relevant business parties, and then redirected closing funds through a network of U.S.-based money mules to final destinations in Africa. Commonly referred to as business email compromise, or BEC, this aspect of the scheme caused hundreds of thousands in loss to companies and individuals in Memphis.
In addition to BEC, the Africa-based defendants are also charged with perpetrating, or causing to be perpetrated, various romance scams, fraudulent-check scams, gold-buying scams, advance-fee scams, and credit card scams. The indictment alleges that the proceeds of these criminal activities, both money and goods, were shipped and/or transferred from the United States to locations in Ghana, Nigeria, and South Africa
through a complex network of both complicit and unwitting individuals that had been recruited through the various Internet scams. The defendants are also charged with concealing their conduct by, among other means, stealing or fraudulently obtaining personal identification information (PII) and using that information to create fake online profiles and personas. Through all their various schemes, the defendants are believed to have caused millions in loss to victims across the globe.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI led the investigation. The FBI’s Transnational Organized Crime of the Eastern Hemisphere Section of the Criminal Investigative Division, Major Cyber Crimes Unit of the Cyber Division, and International Organized Crime Intelligence and Operations Center all provided significant support in this case, as did INTERPOL Washington, the U.S. Marshals Service, and the U.S. Attorney’s Offices of the Northern District of Georgia, Western District of Washington, Central District of California, Southern District of New York, and the Northern District of Illinois.
Senior Trial Attorney Timothy C. Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Debra L. Ireland of the U.S. Attorney’s Office for the Western District of Tennessee are prosecuting the case, with significant assistance from the Department of Justice’s Office of International Affairs.
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Eight Arrested in Africa-Based Cybercrime and Business Email Compromise ConspiracyRead the Press Release
In accordance with the Justice Department’s recent efforts to disrupt business email compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens, the Department announced Operation Keyboard Warrior, an effort coordinated by United States and international law enforcement to disrupt online frauds perpetrated from Africa. Eight individuals have been arrested for their roles in a widespread, Africa-based cyber conspiracy that allegedly defrauded U.S. companies and citizens of approximately $15 million since at least 2012.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney D. Michael Dunavant of the Western District of Tennessee and Executive Assistant Director David T. Resch of the FBI, made the announcement today.
Five individuals were arrested in the United States for their roles in the conspiracy including Javier Luis Ramos Alonso, 28, a Mexican citizen residing in Seaside, California; James Dean, 65, of Plainfield, Indiana; Dana Brady, 61, of Auburn, Washington; Rashid Abdulai, 24, a Ghanaian citizen residing in the Bronx, New York, who has been charged in a separate indictment; and Olufolajimi Abegunde, 31, a Nigerian citizen residing in Atlanta, Georgia. Maxwell Atugba Abayeta aka Maxwell Peter, 26, and Babatunde Martins, 62, of Ghana and Benard Emurhowhoariogho Okorhi, 39, a Nigerian citizen who resides in Ghana, have been arrested overseas and are pending extradition proceedings to face charges filed in the Western District of Tennessee.
The indictment also charges Sumaila Hardi Wumpini, 29; Dennis Miah, 34; Ayodeji Olumide Ojo, 35, and Victor Daniel Fortune Okorhi, 35, all of whom remain at large. Abegunde had his detention hearing today before U.S. District Court Judge Sheryl H. Lipman of the Western District of Tennessee, who ordered him detained pending trial, which has been set for Oct. 9.
“The defendants allegedly unleashed a barrage of international fraud schemes that targeted U.S. businesses and individuals, robbing them to the tune of approximately $15 million,” said Acting Assistant Attorney General Cronan. “The Department of Justice will continue to work with our international partners to aggressively disrupt and dismantle criminal enterprises that victimize our citizens and businesses.”
“Today, the FBI and our partners are announcing indictments as part of Operation Keyboard Warrior,” said FBI Executive Assistant Director Resch. “Following the success of Operation WireWire in early June, these indictments continue to demonstrate the FBI’s commitment to working with our partners around the globe to disrupt and dismantle criminal enterprises that target Americans and their businesses. This should stand as a warning that our work is not over, and we will continue to work together with our law enforcement partners to put an end to these fraud schemes. I want to thank all the agents and analysts at the FBI, our partners at the Department of Justice, and our Ghanaian partners at the Economic and Organised Crime Office for all their tireless work to continue to pursue this issue at every turn.”
The indictment was returned by a grand jury in the U.S. District Court for the Western District of Tennessee on Aug. 23, 2017, and charges the defendants with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, conspiracy to commit computer fraud, and aggravated identity fraud.
The indictment alleges that the Africa-based coconspirators committed, or caused to be committed, a series of intrusions into the servers and email systems of a Memphis-based real estate company in June and July 2016. Using sophisticated anonymization techniques, including the use of spoofed email addresses and Virtual Private Networks, the coconspirators identified large financial transactions, initiated fraudulent email correspondence with relevant business parties, and then redirected closing funds through a network of U.S.-based money mules to final destinations in Africa. Commonly referred to as business email compromise, or BEC, this aspect of the scheme caused hundreds of thousands in loss to companies and individuals in Memphis.
In addition to BEC, some of the Africa-based defendants are also charged with perpetrating, or causing to be perpetrated, various romance scams, fraudulent-check scams, gold-buying scams, advance-fee scams, and credit card scams. The indictment alleges that the proceeds of these criminal activities, both money and goods, were shipped and/or transferred from the United States to locations in Ghana, Nigeria, and South Africa through a complex network of both complicit and unwitting individuals that had been recruited through the various Internet scams. Some of the defendants are also charged with concealing their conduct by, among other means, stealing or fraudulently obtaining personal identification information (PII) and using that information to create fake online profiles and personas. Through all their various schemes, the defendants are believed to have caused millions in loss to victims across the globe.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI led the investigation. The FBI’s Transnational Organized Crime of the Eastern Hemisphere Section of the Criminal Investigative Division, Major Cyber Crimes Unit of the Cyber Division, the Legal Attaché in Accra, and International Organized Crime Intelligence and Operations Center all provided significant support in this case, as did the Ghanaian Economic and Organised Crime Office, INTERPOL Washington, the U.S. Marshals Service, and the U.S. Attorney’s Offices of the Northern District of Georgia, Western District of Washington, Central District of California, Southern District of New York, and the Northern District of Illinois.
Senior Trial Attorney Timothy C. Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Debra L. Ireland of the U.S. Attorney’s Office for the Western District of Tennessee are prosecuting the case, with significant assistance from the Department of Justice’s Office of International Affairs.
Memphis man sentenced to 10 years in federal prison for conspiracy to distribute cocaine and heroinRead the Press Release
Memphis, TN – A Memphis man has been sentenced to 120 months imprisonment for conspiracy to possess with intent to distribute cocaine and heroin. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, in November 2017, Savino Juarez-Cabrales, 45, coordinated a shipment of heroin via the United States Postal Service to Memphis, TN. He also arranged to have 15 kilograms of cocaine transported to Cordova in a multi-vehicle carrier. On December 4, 2017, an inspector with the United States Postal Inspection Service seized the suspected package that contained 1 kilogram of heroin. On December 8, 2017, the multi-vehicle carrier was stopped in Oklahoma en route to Cordova containing approximately 15 kilograms of cocaine.
U.S. Attorney D. Michael Dunavant said: "Drug distribution conspiracies are not victimless crimes. Heroin and cocaine cause significant human pain, loss, and destruction in countless ways, including addiction, injuries, and deaths. Those who exploit the sanctity of the U.S. Mail system and use other transportation logistics to victimize citizens of the Western District of Tennessee will pay the price for such lawlessness."
On December 19, 2017, a federal grand jury returned an indictment alleging conspiracy to possess with intent to distribute cocaine and conspiracy to possess with intent to distribute heroin both in violation of Title 21 United States Code Section 846.
On June 21, 2018, United States District Judge Thomas L. Parker sentenced Cabrales to the mandatory minimum sentence of 120 months imprisonment.
The defendant is an illegal alien and is subject to deportation after completion of his sentence in the Federal Bureau of Prisons.
This case was investigated by the United States Postal Inspection Service and the Drug Enforcement Administration.
Assistant U.S. Attorney Michelle Kimbril-Parks prosecuted this case on the government’s behalf.
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Local Tax Preparer Pleads Guilty to Filing False Claims with the IRSRead the Press Release
Memphis, TN – A local tax preparer has pleaded guilty to filing false claims in the Memphis area. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the guilty plea today.
According to the charging instrument, from calendar years 2014 to 2016, Gina Holley filed false and fraudulent tax returns when she included false Fuel Tax credits. She did so claiming tax payers were entitled to a tax credit, when in fact, Holley knew taxpayers were not entitled to a tax credit claimed. As a result of Holley’s acts, the Internal Revenue Service (IRS) suffered a loss of over $400,000.
U.S. Attorney D. Michael Dunavant said: "One of the primary functions of this office is to protect the United States Treasury and individual taxpayers. Whenever there is fraud against our tax system, we will use all available resources to punish and deter such dishonest criminal behavior."
Holley pleaded guilty to three counts of presenting false claims to the United States. The maximum penalty is 3 years in prison and a $100,000 fine. Sentencing is scheduled on September 20, 2018 before U.S. District Judge Thomas Parker.
This case was investigated by the IRS.
Assistant U.S. Attorney Damon Keith Griffin is prosecuting the case on the government’s behalf.
Former Crockett County 911-Director Convicted of EmbezzlementRead the Press Release
Jackson, TN – After a two-week trial in federal court, on Friday, June 15, 2018, Brian Black, 42, of Dyersburg, Tennessee, was convicted of embezzlement. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the guilty verdict today.
According to information presented in court, Black embezzled at least $178,000 from the trust account of Oleen H. Fewell Estate. Black was the Chancery Court appointed trustee for the trust, which had been set up by the will of Oleen Fewell for benefit of her daughter, Sharon Connor of Alamo, Tennessee. Instead of using the trust’s money for the benefit only of Sharon Connor, Black spent a large part of the trust’s funds for his own personal benefit. Among other things, Black wrote over $70,000 in trust checks directly to himself, spent almost $6,000 of trust money to take a vacation trip to Florida to attend the St. Louis Cardinals baseball team fantasy camp, and used over $12,000 of trust money to buy items for his own home in Dyersburg.
U.S. Attorney D. Michael Dunavant said: "This office is committed to exposing and holding accountable any persons who use their position of trust and authority to prey upon innocent victims. Across the rural communities of the Western District of Tennessee, including Crockett County, we will always aggressively prosecute cases involving financial fraud and exploitation of the elderly. We are pleased with the jury verdict in this case, and commend the United States Postal Inspection Service for their outstanding investigation in this complex matter."
David M. McGinnis, the Inspector In Charge of the Charlotte Division of the United States Postal Inspection Service, stated "Protecting vulnerable victims is a top priority for the Postal Inspection Service. Postal Inspectors are committed to protecting the sanctity of the United States Mail and will hold those accountable that steal from innocent victims."
By the time United States Postal Inspectors learned of the fraud and began an investigation, Black had spent all of the money in the trust account. Black was the former 911 director for Crockett County.
Sentencing is scheduled for September 18, 2018 at 10:00 a.m. before Chief U.S. District Judge S. Thomas Anderson. Black faces a possible maximum sentence of 90 years imprisonment.
The United States Postal Inspection Service investigated this case.
Assistant U.S. Attorney Tony Arvin is prosecuting this case on the government’s behalf.
Joint Statement of Action to Promote Elder Justice in Rural America by the United States Department of Justice and Department of AgricultureRead the Press Release
The United States Department of Justice (DOJ) and Department of Agriculture (USDA) are forming a working group to focus on ways to empower and to support rural and tribal communities to combat elder abuse and financial exploitation. Today on World Elder Abuse Awareness Day, we collaboratively embark on a mission to work with older Americans in this Nation to improve their quality of life as envisioned by the Report to the President from the Task Force on Agriculture and Rural Prosperity.
The Nation’s seniors are treasured and revered members of our communities. Too often, however, seniors are targeted by unscrupulous criminals for fraud or are subjected to abuse. Factors more common in rural and tribal communities--including large geographic areas that elongate response time, fewer services and service providers, and limited access to broadband-- create additional challenges to identifying and combatting elder fraud and abuse in rural and tribal communities.
U.S. Attorney D. Michael Dunavant said: "Much of the Western District of Tennessee is made up of rural communities, and it is an important priority for this office to protect our senior population across the district. To halt the scourge of abuse, exploitation and financial fraud against older citizens, we have designated an Elder Justice Coordinator in the U.S. Attorney’s Office to investigate, prosecute, punish and deter crimes against our vulnerable seniors. We appreciate the partnership with the USDA, and we look forward to implementing the strategic action steps that result from this collaboration."
DOJ and USDA resolve to marshal our collective resources and expertise to enable rural and tribal communities to more effectively combat elder abuse and financial exploitation. We are forming a working group to develop recommendations and will jointly present strategic action steps in November 2018 at the Department of Justice’s Rural Elder Justice Summit in Des Moines, Iowa.
Texas Man Pleads Guilty to Trafficking 20 Kilos of CocaineRead the Press Release
Memphis, TN – Tellerick Simon, 34, pleaded guilty to federal charges of conspiracy to possess with intent to distribute more than 5 kilograms of cocaine and possession of more than 5 kilograms of cocaine with intent to distribute. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the guilty plea today.
According to information presented in court, on September 25, 2017, officers with the West Tennessee Drug Task Force conducted a traffic stop on eastbound I-40. A subsequent search of the vehicle revealed over 50 pounds of cocaine. The occupants were bringing the cocaine from Houston, Texas through the Western District of Tennessee en route to Knoxville.
A thorough investigation conducted by the Drug Enforcement Administration offices in Memphis, Tennessee; as well as Houston and Brownsville, Texas revealed 34-year-old Tellerick Simon as one of the key participants in trafficking the cocaine. On June 13, 2018, Simon pleaded guilty to charges of conspiracy to distribute cocaine and possession with intent to distribute cocaine. He faces a mandatory minimum sentence of at least 10 years up to life imprisonment.
Sentencing is scheduled for September 17, 2018 before U.S. District Judge Sheryl H. Lipman.
The West Tennessee Drug Task Force, an extension of the Shelby County District Attorney General’s Office, and the Drug Enforcement Administration investigated this case.
Special Assistant U.S. Attorney Joseph Griffith is prosecuting this case on the government’s behalf.
U.S. Attorney D. Michael Dunavant Selected to the 2018 Class of Leadership TennesseeRead the Press Release
Memphis, TN - Leadership Tennessee today announced its 45 Class VI members, leaders from rural and urban communities across Tennessee who will spend the next year engaging in collaborative, non-partisan dialogue on issues of statewide importance.
The 45 new class members represent each geographic region of the state, including the communities of Memphis, Martin, Jackson, Nashville, Clarksville, Murfreesboro, Knoxville, Kingsport, Johnson City and Chattanooga. Professional sectors represented include healthcare, education, economic development, government, tourism and agriculture.
Class VI members:
Adamsville: Commissioner Jai Templeton, Tennessee Department of Agriculture
Brentwood: Valerie Hayes, Managing Director, Deloitte
Bristol: Jerry Caldwell, Executive Vice President/General Manager, Bristol Motor Speedway; Senator Jon Lundberg, State of Tennessee
Columbia: Jeff Aiken, President, Tennessee Farm Bureau
Chattanooga: Jared T. Bigham, Executive Director, Chattanooga 2.0; Stacy Goodwin Lightfoot, Vice President College and Career Success, Public Education Foundation; Hodgen Mainda, Vice President Community Development, Electric Power Board – Chattanooga; David Steele, Director of Civic Engagement & Assistant Professor of Practice, University of Tennessee at Chattanooga; Dakasha Winton, Chief Government Relations Officer/Senior Vice President, Blue Cross Blue Shield of Tennessee
Clarksville: Charlie Koon, VP Corporate & Military Business Development, F&M Bank
Dresden: Mayor Jake Bynum, Weakley County
Franklin: Brigadier General Kurt Winstead, Director of Joint Staff, Tennessee National Guard
Jackson: Logan Hampton, President, Lane College; Justice Roger Page, Tennessee Supreme Court; Lisa Piercy, MD, Executive Vice President, West Tennessee Healthcare
Johnson City: Alan Levine, Chairman/CEO, Ballad Health
Kingsport: Mayor John Clark, City of Kingsport; Dr. Jeff McCord, Vice President, Economic and Workforce Development, Northeast State Community College; Aundrea Wilcox, Executive Director – KOSBE, Kingsport Chamber of Commerce
Knoxville: Pastor Daryl Arnold, Overcoming Believers Church; Robyn Jarvis Askew, Shareholder/Attorney, Lewis, Thomason, King, Krieg & Waldrop P.C.; Cynthia Gibson, Chief Legal & Business Affairs Officer (former), Scripps Networks Interactive; Dr. Victoria Neiderhauser, Dean and Professor, University of Tennessee Knoxville College of Nursing
Martin: Keith Carver, Chancellor, University of Tennessee at Martin
Maryville: Bryan Daniels, President & CEO, Blount Partnership
Memphis: Rob Clark, Chief Government Affairs Officer, St. Jude Children’s Research Hospital; Tosha Downey, Advocacy Director, Memphis Education Fund; Mike Dunavant, U.S. Attorney for the Western District of Tennessee, U.S. Department of Justice; Mitch Graves, President/CEO, HealthChoice LLC; Leslie Lynn Smith, President and CEO, EpiCenter Memphis; Tish Towns, Senior Vice President/Chief Administrative Officer, Regional One Health
Murfreesboro: Dan Caldwell, Senior Manager, Training, US Manufacturing, Nissan Group of North America; Beth Duffield, Senior Vice President of Education & Workforce Development, Rutherford County Chamber of Commerce
Nashville: Shanna Singh Hughey, President, Think Tennessee; Paige Kisber, President and CEO, Hospital Alliance of Tennessee; Amy New, Assistant Commissioner, Community and Rural Development, State of Tennessee Department of Economic and Community Development; Toks Omishakin, Deputy Commissioner/Chief of Planning and Environment, Tennessee Department of Transportation; Ann Jarvis Pruitt, Executive Director, Tennessee Alliance for Legal Services; Emily Reynolds, Vice Chairman, Tennessee Board of Regents; Gabe Roberts, Deputy Director and Chief Operating Officer, TennCare; Tara Scarlett, President/CEO, Scarlett Family Foundation; Todd Skelton, Deputy Counsel to Governor Bill Haslam, State of Tennessee; Deborah Taylor Tate, Director, Administrative Office of the Courts, Tennessee Supreme Court;
Union City: Lindsay Frilling, CEcD, CEO, Obion County Joint Economic Development Council;
"Each Leadership Tennessee class brings its own experience and insight to the table, and we’re especially excited about Class VI and what they bring to the conversation around critical issues in Tennessee," Leadership Tennessee Executive Director Cathy Cate said. "Each class grows together over the course of the year as they challenge their perspectives on issues in their communities. We’re looking forward to the conversations Class VI will have over the next year as they develop the program around focus areas they highlight as critical to state success."
Entering its sixth year, Leadership Tennessee selects a new class of leaders annually to visit different regions and communities of Tennessee, learning best practices and analyzing important issues faced by Tennesseans. To date, Leadership Tennessee has built a network of 175 leaders across the state.
"Leadership Tennessee helps you build relationships across multiple industries and sectors, public and private, but more importantly it builds opportunities for partnerships," recent Class V graduate and Tennessee Charter Schools Center CEO Maya Bugg said.
In conjunction with its fifth-year celebration, Leadership Tennessee brought Pulitzer Prize-winning author Thomas Friedman to tour the state and hosted its first gubernatorial forum at Lipscomb University in May. It also launched its "Volunteer State of Mind" initiative to spotlight Tennesseans’ propensity to selflessly serve and volunteer.
Earlier this year, Leadership Tennessee cohosted panels focused on the relationship between health, economic development, and education in building healthier communities, and it held a summit on childhood poverty in Northeast Tennessee in April.
Leadership Tennessee, an initiative of the College of Leadership & Public Service at Lipscomb University, fosters collaborative, non-partisan dialogue on issues of state importance, connecting a network of diverse leaders and engaged citizens.
74 Arrested in Coordinated International Enforcment Operation Targeting Hundreds of Individuals in Business Email Compromise SchemesRead the Press Release
Memphis, TN – Federal authorities announced today a significant coordinated effort to disrupt Business Email Compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens. Operation Wire Wire, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury and the U.S. Postal Inspection Service, was conducted over a six month period, culminating in over two weeks of intensified law enforcement activity resulting in 74 arrests in the United States and overseas, including 29 in Nigeria, and three in Canada, Mauritius and Poland. The operation also resulted in the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.
BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances and businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments. The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams. BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network. Foreign citizens perpetrate many BEC scams. Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world.
“Fraudsters can rob people of their life's savings in a matter of minutes,” said Attorney General Sessions. “These are malicious and morally repugnant crimes. The Department of Justice has taken aggressive action against fraudsters in recent months, conducting the largest sweep of fraud against American seniors in history back in February. Now, in this operation alone, we have arrested 42 people in the United States and 29 others have been arrested in Nigeria for alleged financial fraud. And so I want to thank the FBI, nearly a dozen U.S. Attorneys' Offices, the Secret Service, Postal Inspection Services, Homeland Security Investigations, the Treasury Department, our partners in Nigeria, Poland, Canada, Mauritius, Indonesia, and Malaysia, and our state and local law enforcement partners for all of their hard work. We will continue to go on offense against fraudsters so that the American people can have safety and peace of mind.”
“This operation demonstrates the FBI’s commitment to disrupt and dismantle criminal enterprises that target American citizens and their businesses,” said FBI Director Christopher A. Wray. “We will continue to work together with our law enforcement partners around the world to end these fraud schemes and protect the hard-earned assets of our citizens. The public we serve deserves nothing less.”
“The Secret Service remains committed to aggressively investigating and pursuing those responsible for cyber-enabled financial crimes,” said U.S. Secret Service Director Randolph “Tex” Alles. “Although the explosive expansion of the cyber domain has forced us to develop innovative ways of conducting these types of investigations, our proven model remains the same.”
“FinCEN has been a leader in the fight against BEC and other cyber-enabled crime,” said FinCEN Director Kenneth A. Blanco. “Since 2014, working with our domestic and international partners, our Rapid Response Program has helped recover over $350 million stolen from innocent Americans. We must continue to be smarter, quicker, and better than the criminals that we face every day. Today’s action is a victory, but it will take vigilance, time, and resources to take this fight into the future. In defense of the victims of these crimes, we are ready for the challenge.”
“The U.S. Postal Inspection Service has a long history of successfully investigating complex fraud and corruption cases,” said Chief Postal Inspector Guy Cottrell. “We are proud to work alongside our fellow law enforcement partners in major efforts, such as Operation Wire Wire, to target those individuals who take advantage of the American public for illegal profits. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable, regardless of where they are. Postal Inspectors will continue to work tirelessly to protect our customers from fraud.”
A number of cases involved international criminal organizations that defrauded small to large sized businesses, while others involved individual victims who transferred high dollar funds or sensitive records in the course of business. The devastating effects these cases have on victims and victim companies, affect not only the individual business but also the global economy. Since the Internet Crime Complaint Center (IC3) began keeping track of BEC and its variant, Email Account Compromise (EAC), as a complaint category, there has been a loss of over $3.7 billion reported to the IC3. BEC and EAC is a prevalent scam and the Justice Department along with our partners will continue to aggressively pursue and prosecute the perpetrators, including money mules, regardless of where they are located.
Money mules may be witting or unwitting accomplices who receive ill-gotten funds from the victims and then transfer the funds as directed by the fraudsters. The money is wired or sent by check to the money mule who then deposits it in his or her own bank account. Usually the mules keep a fraction for “their trouble” and then wire the money as directed by the fraudster. The fraudsters enlist and manipulate the money mules through romance scams or “work-at-home” scams.
Starting in January 2018, this coordinated enforcement action targeted hundreds of BEC scammers. In addition, law enforcement agents executed over 51 domestic actions including search warrants, money mule warning letters, and asset seizure warrants totaling nearly $1 million. Local and state law enforcement partners on FBI task forces across the country, with the assistance of multiple District Attorney’s Offices, charged 15 alleged money mules for their role in defrauding victims. These money mules were employed by the fraudsters to launder their ill-gotten gains by draining the funds into other accounts that are difficult to trace.
Among those arrested on federal charges in BEC schemes include:
• Following an investigation by the FBI and the U.S. Secret Service, 23 individuals were charged in the Southern District of Florida with laundering at least $10 million from proceeds of BEC scams, including eight people charged in an indictment unsealed last week in Miami. These eight defendants are alleged to have conspired to launder proceeds from numerous BEC scams, totaling at least approximately $5 million, including approximately $1.4 million from a victim corporation in Seattle, as well as various title companies and a law firm.
• Following an investigation led by the FBI with the assistance of the IRS Criminal Investigation, Gloria Okolie and Paul Aisosa, both Nigerian nationals residing in Dallas, Texas, were charged in an indictment filed on June 6 in the Southern District of Georgia. According to the indictment, they are alleged to have victimized a real estate closing attorney by sending the lawyer a spoofing email posing as the seller and requesting that proceeds of a real estate sale in the amount of $246,000 be wired to Okolie’s account. They are charged with laundering approximately $665,000 in illicit funds. The attorney experienced $130,000 in losses after the bank was notified of the fraud and froze $116,000.
• Adeyemi Odufuye aka “Micky,” “Micky Bricks,” “Yemi,” “GMB,” “Bawz” and “Jefe,” 32, and Stanley Hugochukwu Nwoke, aka “Stanley Banks,” “Banks,” “Hugo Banks,” “Banky,” and “Jose Calderon,” 27, were charged in a seven-count indictment in the District of Connecticut in a BEC scheme involving an attempted loss to victims of approximately $2.6 million, including at least $440,000 in actual losses to one victim in Connecticut. A third co-conspirator Olumuyiwa Yahtrip Adejumo, aka “Ade,” “Slimwaco,” “Waco,” “Waco Jamon,” “Hade,” and “Hadey,” 32, of Toledo, Ohio, pleaded guilty on April 20 to one count of conspiracy to commit wire fraud. Odufuye was extradited from the United Kingdom to the United States and on Jan. 3, pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Nwoke was extradited to the United States from Mauritius on May 25, marking the first extradition in over 15 years from Mauritius. His case is pending.
• Richard Emem Jackson, aka Auwire, 23, of Lagos, Nigeria, was charged in an indictment filed on May 17 in the District of Massachusetts with two counts of unlawful possession of a means of identification as part of a larger fraud scheme. According to the indictment, on two occasions in 2017, Jackson is alleged to have possessed the identifications of two victims with the intent to commit wire fraud conspiracy. In another case being prosecuted in the District of Massachusetts, a 25-year-old Fort Lauderdale, Florida man was indicted in federal court in Boston on June 6 on one count of money laundering conspiracy. According to the indictment, the individual was part of a conspiracy that engaged in wire fraud. It is alleged that in early 2018, the defendant’s co-conspirators gained access to email accounts belonging to a Massachusetts real estate attorney and sent emails to recipients in Massachusetts that “spoofed” the real estate attorney’s account in an attempt to cause the email recipient to transfer nearly $500,000, which was intended to be used for payment in connection with a real estate transaction, to a shell account belonging to a money mule recruited and controlled by the defendant.
The BEC scam is related to other forms of fraud such as:
• “Romance scams,” which lull victims to believe that their online paramour needs funds for an international business transaction, a U.S. visit or some other purpose;
• “Employment opportunities scams,” which recruits prospective employees for work-from-home employment opportunities where employees are required to provide their PII as new “hires” and then are significantly overpaid by check whereby the employees wire the overpayment to the employers’ bank;
• “Fraudulent online vehicle sales scams,” which convinces intended buyers to purchase prepaid gift cards in the amount of the agreed upon sale price and are instructed to share the prepaid card codes with the “sellers” who ignore future communications and do not deliver the goods;
• “Rental scams” occur when renters forward a check in excess of the agreed upon deposit for the rental property to the victims and request the remainder be returned via wire or check and back out of the rental agreements and ask for a refund; and
• “Lottery scams,” which involves persons randomly contacting email addresses advising them they have been selected as the winner of an international lottery.
The cases were investigated by the FBI, U.S. Secret Service, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN) and IRS Criminal Investigation. U.S. Attorney’s Offices in the Districts of Central California, Connecticut, Eastern Virginia, Massachusetts, Nebraska, New Jersey, Southern Florida, Southern Georgia, Southern Texas, Eastern Pennsylvania, Eastern Washington, Western Pennsylvania, Western Tennessee, Western Washington, Utah, and elsewhere have ongoing investigations some of which have resulted in arrests in Nigeria. The Justice Department’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section and Office of International Affairs of the Criminal Division provided assistance. District Attorney’s Offices of Caddo Parrish in Shreveport, Louisiana; Harris County, Texas and Los Angeles are handling state prosecutions. Additionally, private sector partners and the Nigerian Economic and Financial Crimes Commission, Canadian law enforcement including the Toronto Police Service, the Mauritian Attorney-General and the Commissioner of Police, Polish Police Central Bureau of Investigation, Indonesian National Police Cyber Crimes Unit, and the Royal Malaysia Police provided significant assistance.
This operation, which was funded and coordinated by the FBI, serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents. Attorney General Sessions expressed gratitude for the outstanding efforts of the participating countries, including law enforcement actions that were coordinated and executed by the Economic and Financial Crimes Commission (EFCC) in Nigeria to curb business email compromise schemes that defraud businesses and individuals alike.
Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov.
For more information on BEC scams, visit:www.ic3.gov/media/2018/180611.aspx
Official Statement from U.S. Attorney Dunavant on the Commutation of Alice Marie JohnsonRead the Press Release
Memphis, TN – "As United States Attorney for the Western District of Tennessee, I took an oath to support and defend the Constitution of the United States, and to faithfully execute and enforce the laws of Congress. Included in our Constitution is the absolute power and authority of the President to grant Executive Clemency relief, and I understand and respect the President’s decision to grant a commutation of Ms. Johnson’s sentence. Vigorous and consistent federal prosecution of violations of the Controlled Substances Act, including major drug trafficking organizations and money laundering schemes, are a top priority of this office and the Department of Justice, and we will continue to promote public safety and enforce the rule of law in the Western District of Tennessee by aggressively pursuing such cases."
Largest Increase in AUSAs in Decades Allocates Two Prosecutors to the District of Western Tennessee to Focus on Violent Crime and Civil EnforcementRead the Press Release
Attorney General Jeff Sessions and U.S. Attorney for the District of Western Tennessee, D. Michael Dunavant announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce our immigration laws, and help roll back the devastating opioid crisis.
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSA’s will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.
"Under President Trump's strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements," said Attorney General Jeff Sessions. "We have a saying in my office that a new federal prosecutor is 'the coin of the realm.' When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades."
In the District of Western Tennessee, one of these AUSAs will focus on violent crime and one on civil enforcement.U.S. Attorney D. Michael Dunavant said: "The Department of Justice has been very responsive and generous in the resources that have been allocated to the Western District of Tennessee within the last few months. On December 21, 2017, the Attorney General announced that the Western District of Tennessee would receive two (2) new and additional federal prosecutor positions that have now been solely dedicated and assigned to aggressively prosecute violent crimes cases in Memphis and Jackson. Now, with this additional violent crime prosecutor position, we can continue to increase our caseloads in the area of firearms, gangs, and violent crimes in Memphis and across West Tennessee. Likewise, with the allocation of the new Civil ACE position, our office will be better positioned to affirmatively litigate cases in the growing areas of health care fraud, elder abuse, nursing home complaints, and prescription opioid diversion. We are thankful for all of these resources from the Department of Justice, and we are committed to the effective use of these new positions to reduce violent crime and handle complex civil litigation on behalf of the United States."
To see more information on the locations of the 311 Assistant United States Attorney positions click here.Two Memphis Men Sentenced to a Total of 250 Months Imprisonment for Robbing Family Dollar StoreRead the Press Release
Memphis, TN – Two Memphis men have been sentenced to a total of 250 months in federal prison for committing an armed robbery affecting interstate commerce. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentences today.
According to information presented in court, on January 21, 2017, at approximately 9:40 p.m., Trentell Razor, 22, and Lareco Brooks, 21, entered the Family Dollar store at 2912 Coleman in Memphis. The men were dressed in black clothing and their faces were covered. Razor jumped over the counter and headed to the back of the store where he saw a customer with her young daughter. He advised them to stay where they were.
U.S. Attorney D. Michael Dunavant said:" The senselessness of gun violence has a long lasting effect on victims of armed robbery, and also has a corresponding long lasting consequence for such lawless offenders. These sentences make clear that there will always be a reckoning for the commission of violent crimes."
Brooks, armed with a sawed-off shotgun, put the shotgun to the neck of one of the two employees in the store, grabbed her by the shirt, and threw her to the ground. He then grabbed the second employee by the back of her shirt collar, pulled her across the counter and put the shotgun to her temple. He ordered her to open the register. Razor took money from the drawer and the two men fled on foot. A tracking device hidden in the bills enabled law enforcement to track the men to a Kia Spectra. When officers began following the vehicle, the men sped off and a police pursuit ensued. During the police chase, Brooks asked Razor to pull over and let him out. Razor complied and Brooks fled on foot, throwing the sawed-off shotgun in his wake. Razor finally stopped the vehicle and surrendered to police. Brooks was apprehended several days later on an unrelated charge.
On May 24, 2018, U.S. District Judge John T. Fowlkes, Jr. sentenced the men to a total of 250 months imprisonment.
This case was investigated by the FBI’s Safe Streets Task Force.
Assistant U.S. Attorney Karen Hartridge prosecuted this case on the government’s behalf.
Milan Man Sentenced to 84 Months Imprisonment for Defrauding Medicare, Medicaid and TricareRead the Press Release
Jackson, TN – Following his conviction at trial by a federal jury of conspiracy and wire fraud, Bryan Bailey, 39, of Milan, Tenn. was sentenced by Chief United States District Judge S. Thomas Anderson to 84 months imprisonment, followed by three years of supervised release, and a $200 special assessment. Bailey was also order to pay more than $1.9 million in restitution to Medicare, Medicaid and private insurance companies.
Bryan Bailey was convicted following more than three weeks of trial in February 2018 of both counts charging him in the indictment. His mother, Sandra Bailey, 67, of Jackson, was convicted of 16 counts, including conspiracy, health care fraud, and paying illegal kickbacks in connection with health care services. His father, Calvin Bailey, 67, of Jackson, was convicted of conspiracy. The jury returned guilty verdicts on all 17 counts alleged in the indictment.
U.S. Attorney D. Michael Dunavant said: "Dishonest criminals are using more creative and disturbing fraudulent schemes to victimize vulnerable citizens and the American taxpayers for their own selfish gain. This case represents our commitment to expose these fraudulent schemes, protect the integrity of the Medicaid system, hold offenders accountable for their dishonest criminal conduct, and to recover ill-gotten proceeds on behalf of the government. The U.S. Attorney’s Office is willing and able to go to any lengths in our pursuit of justice in healthcare fraud cases."
Evidence at trial revealed Sandra Bailey and Calvin Bailey sold durable medical equipment including power wheelchairs and back braces. From November 2009 to September 2011, they were both employed at Jaspan Medical Systems ("JMS"), a durable medical equipment company with an office in Jackson, Tenn. Durable medical equipment is designed for repeated use and legitimate medical purposes. Following their employment at JMS, the couple was employed by other medical supply companies in West Tennessee, Kentucky, and Mississippi. Calvin Bailey is also the former principal at Medina Elementary School in Medina, Tenn. Bryan Bailey, was the operations and sales manager at Jaspan from October 2009 to July 2013.
While employed at JMS, the Baileys began to market wheelchairs to patients and represented them as paid fully by Medicare, and at no cost to the patients. To market the equipment, the Baileys used an extensive network of illegally paid recruiters to find eligible patients. After finding the patients, Sandra and Bryan Bailey would forge and falsify documents to make it appear that the patients qualified for the equipment. They also enlisted a local physician and nurse practitioner to order the equipment without the required physical examinations to determine if the equipment was medically necessary. To facilitate this scheme, Sandra Bailey paid illegal kickbacks to the medical providers.
Numerous patients testified that Sandra Bailey offered the equipment at no cost, and that they never saw the doctor or nurse practitioner before the Baileys delivered the back braces and power wheelchairs. Many also testified that they never used the power wheelchairs, and that the power wheelchairs were too large to be used in their homes. Even though most of the patients could walk, drive vehicles, and care for themselves without the need for a power wheelchair, the Baileys would falsify medical records to make it appear that the patients were qualified. In order to qualify the patients to receive the equipment at no cost, Bryan Bailey falsified and directed others to falsify patients’ income and expenses to make it appear that they were indigent.
"Kickbacks pervert medical decision-making by encouraging health care providers to order things that patients do not need," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of the Inspector General in Atlanta. "This defendant pushed the sale of expensive power wheelchairs by paying patient recruiters and others which was a blatant violation of the law."
In 2010, Bryan Bailey expanded JMS’s sales into North Mississippi, and hired a sales representative named Dennis Sensing to sell power wheelchairs. Sensing paid illegal kickbacks to patient recruiters to find Medicare and Medicaid patients under the direction of Bryan Bailey. Bryan Bailey received sales commissions for the power wheelchairs sold by Sensing. In order to bill Medicare and Medicaid for the equipment, Sensing forged the signature of a nurse practitioner with Bryan Bailey’s knowledge and approval. Bryan Bailey directed Sensing to falsify patients’ income and expenses to make it appear that they were indigent. Sensing sent via facsimile the forged and falsified documents to Bryan Bailey, who caused the claims to be submitted for payment. Sensing, who previously had pleaded guilty to conspiracy to commit healthcare fraud and pay illegal kickbacks, testified in the government’s case.
During the time the Baileys worked at JMS and the other companies, they received more than $1.2 million in salary and sales commissions. Chief Judge Anderson found the 84-month sentence warranted because the American taxpayers were victimized by the fraudulent behavior of Bryan Bailey and the other defendants.
Sandra Bailey and Calvin Bailey are scheduled to be sentenced on August 3, 2018 before Chief Judge Anderson.
"Protecting taxpayer dollars is the heartbeat of the Tennessee Bureau of Investigation’s Medicaid Fraud Control Unit," said TBI Acting Director Jason Locke. "Working alongside our local, state, and federal partners, we will continue to pursue those who are defrauding the Medicaid system and taking advantage of vulnerable Tennesseans in need of these services."
"Health care fraud drives up health care costs, wastes taxpayer money, undermines the Medicare, Medicaid and Tricare programs, and sadly, has infected every facet of our health care system," said Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "Health care fraud is a crime that hurts all of us and each dollar taken from programs that help the sick and the suffering is one dollar too many. The FBI is committed to fighting fraud and protecting taxpayer dollars, and with our law enforcement partners we will continue to identify and investigate the criminals who, driven by greed, target the systems each of us depends on in our most vulnerable moments."
"We always appreciate the opportunity to work with multi-state law enforcement agencies to combat healthcare fraud and protect our citizens’ resources and tax dollars," said Jim Hood, Attorney General of Mississippi.
This investigation was conducted by the U.S. Department of Health and Human Services - Office of the Inspector General, the Federal Bureau of Investigation, the Tennessee Bureau of Investigation, and the Attorney General’s Office for Mississippi.
Assistant U.S. Attorneys Stuart Canale and Matt Wilson prosecuted this case on behalf of the government.
Brink’s Armored Truck Robber Sentenced to 27 Years ImprisonmentRead the Press Release
Memphis, TN – A Memphis man was sentenced to 324 months in federal prison for committing armed robberies effecting interstate commerce. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on April 29, 2016, two armed men robbed two Brink’s Armored Truck Services employees outside of Regions Bank located at 3535 Austin Peay Highway. One of the Brink’s employees was in the process of loading two cash cassettes, containing $192,000, into the ATM, when one of the robbers approached the employee at gunpoint, while the second robber remained parked nearby in a truck. The second employee, who remained in the Brink’s truck, rammed the robbers’ truck knocking to the ground the robber standing outside the truck. The robber in the truck sped off leaving the second robber on the ground with a broken leg. Law enforcement arrested 49-year-old Cornelius Richmond on the scene. The other alleged robber, Roderick Herron, 52, is currently awaiting trial.
U.S. Attorney D. Michael Dunavant said: "Armed robberies are brazen and disturbing acts of violence that terrorize our businesses and community, and must be met with significant sentences such as this one. These dangerous offenders have sown violence and greed, and will now reap the full measure of consequences for their criminal conduct."
Richmond’s 27-year prison sentence was also based on his participation in the April 26, 2016, "smash and grab" robbery of Circle K located at 1205 N. Germantown Parkway in Cordova, TN. Richmond and allegedly Herron drove a stolen GMC Truck through the front window of the store, and once inside, they took the store’s ATM and bill pay machines by dragging the machines out of the store.
On May 23, 2018, U.S. District Judge John T. Fowlkes Jr., sentenced Richmond to 324 months in federal prison.
This case was investigated by the FBI’s Safe Streets Task Force.
Assistant U.S. Attorney Kevin P. Whitmore is prosecuting this case on the government’s behalf.
“Stackz Squad” Street Gang Member Sentenced to 41 Months in Federal PrisonRead the Press Release
Memphis, TN. A member of the “Stackz Squad” street gang has been sentenced to 41 months in federal prison for being a drug user in possession of firearms. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
The defendant was convicted after a jury trial on the following facts: On May 27, 2017, detectives with the Multi-Agency Gang Unit were on patrol during the funeral of a known gang member at a church in Raleigh. While at the scene, detectives observed a silver Toyota Camry enter the church parking lot in which Jamal Bowens and Lee Hope were passengers. Detectives then approached the vehicle and observed a marijuana cigar and a Rossi .357 revolver on the floorboard under Bowen’s feet. Upon search of Hope’s person, a stolen Smith and Wesson .40 caliber pistol was recovered from the front of his pants. The Smith and Wesson pistol was reported stolen out of Mississippi. A video posted on social media showed Hope in possession of both firearms earlier in the day.
U.S. Attorney D. Michael Dunavant said: “Now more than ever, it is crucial that we remove firearms from dangerous and prohibited people, and remove violent and unstable offenders with firearms from our communities. This conviction and sentence demonstrates our commitment to use all of the laws provided by Congress to target and incapacitate violent gang members with guns. We are Fed Up with gun crime in Memphis, and we are doing something about it.” Gun Crime is Max Time.
At sentencing, the proof showed Bowens was a member of the street gang Stackz Squad and frequently possessed firearms with other gang members. Bowens possession of firearms occurred while the defendant was on bond in state court. Currently, Bowens has charges of Aggravated Robbery and Aggravated Assault pending in state court.
On May 22, 2108, U.S. District Judge Sheryl H. Lipman sentenced Bowens to 41 months imprisonment for being a drug user in possession of two firearms.
Lee Hope, 20, a co-defendant, was also convicted for possessing a firearm while being a drug user. Hope is set for sencting on June 13, 2018.
The Multi-Agency Gang Unit investigated this case.
Assistant U.S. Attorney Marques T. Young prosecuted this case on the government’s behalf.
Memphis Man Sentenced to 20 Years in Federal Prison for Family Dollar RobberiesRead the Press Release
Memphis, TN – A Memphis man has been sentenced to 20 years in federal prison for committing two armed robberies affecting interstate commerce. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on September 20, 2016, Tony Holmes, 24, used a sawed-off shotgun to rob two Family Dollar locations within three hours. There were several customers and employees at each location when Holmes robbed the stores.
Holmes pled guilty on March 1, 2018, to two counts of robbery affecting interstate commerce and one count of brandishing a short-barreled shotgun during a crime of violence.
U.S. Attorney D. Michael Dunavant said: "The violent crime rate in Memphis is unacceptably high. Business owners have a fundamental right to be safe from armed robbers who terrorize our communities with their lawlessness. This sentence sends a clear message that there will be a real and significant consequence for such violence, and we will no longer allow gun crime to rule our streets."
On May 24, 2018, U.S. District Judge John T. Fowlkes Jr., sentenced Holmes to 20 years imprisonment and five years supervised release to begin after incarceration.
The Safe Streets Task Force investigated this case.
Assistant U.S. Attorney Elizabeth Rogers prosecuted this case on the government’s behalf.
DEA Targets Opioid Crisis with Operation Safe HavenRead the Press Release
Memphis, TN - The Drug Enforcement Administration this week launched Operation Safe Haven, a sweeping enforcement action spanning three states. DEA Special Agents, working closely with their state and local law enforcement partners throughout Kentucky, Tennessee, and West Virginia targeted a variety of bad actors, ranging from healthcare workers and distributors, to street-level drug dealers in a coordinated effort to attack the opioid crisis head-on in the region.
Kentucky, Tennessee and West Virginia have been hit particularly hard by the opioid crisis, according to James Catalano, Resident Agent in Charge of DEA’s Memphis Office. "Through operations like Safe Haven, the dedicated men and women of DEA, with help from our state and local counterparts, are working hard to make these communities safer by getting dangerous drugs off of our streets and bringing those who distribute them to justice," Catalano said.
Operation Safe Haven is the culmination of several months-long investigations. DEA Special Agents and Diversion Investigators from the Louisville Field Division, with support from local law enforcement agencies across the region, made 93 arrests, and seized over $1,000,000.00 in cash, 40 firearms, as well as significant quantities of heroin, fentanyl, and other drugs. Additionally, over 60 administrative actions were carried out against a range of healthcare providers.
Combatting opioid abuse is a top priority for DEA. In conjunction with Operation Safe Haven’s enforcement activities, DEA Diversion Investigators visited more than 100 pharmacies in 70 cities throughout Kentucky, Tennessee, and West Virginia to deliver pharmacist manuals and contact information for the Louisville Division’s Diversion Program. These visits mark the beginning of an on-going campaign to remind pharmacy staff of their compliance duties and ethical responsibilities.
The DEA’s Louisville Field Division covers Kentucky, Tennessee, and West Virginia, under the direction of Special Agent In Charge D. Christopher Evans. The Division was created in 2018 to better synchronize DEA’s efforts with regional law enforcement partners in a part of the country among those hardest hit by America’s opioid epidemic.
U.S. Attorney Announces the Indictment of Four Individuals on Federal Drug and Gun ChargesRead the Press Release
Memphis, TN – On May 15, 2018, a federal grand jury indicted four individuals for federal drug charges. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictments today.
According to the indictments, the defendants are charged with conspiracy to distribute and possess with the intent to distribute heroin, cocaine, methylenedioxymethamphetamne (MDMA), methadone, hydrocodone, morphine, oxycodone and possession of a firearm in furtherance of a drug trafficking crime.
U.S. Attorney D. Michael Dunavant said: "Drug trafficking is an inherently dangerous and violent business that is often conducted by the illegal use and possession of firearms. These indictments demonstrate our commitment to remove armed drug traffickers from our streets by seeking significant mandatory sentences for selling poison in our community."
The defendants charged in the indictment and currently in custody are:
Antonio Rucker, 39, Memphis, Tennessee
Eric Crawford, 44, Memphis, Tennessee
Dewana Bogan, 38, Memphis, Tennessee
Angela Dominique Pittman, 33, Memphis, TennesseeCounts 1, 2, and 3 of the indictment charges Antonio Rucker and Eric Crawford with possession with intent to distribute 100 grams of heroin, 125 grams of cocaine, and over 100 oxycodone pills.
In another three count indictment, counts 1 and 2 charges Angela Dominique Pittman with possession with intent to distribute more than 100 grams of heroin and conspiracy. Count 3 charges Pittman with possessing a Glock 19 9mm caliber pistol in furtherance of a drug trafficking crime.
Counts 1 through 14 of a third separate indictment charges Dewana Bogan with intent to distribute heroin, methylenedioxymethamphetamine (MDMA), methadone, hydrocodone, morphine and cocaine. Bogan is also charged with two counts of felony possession of firearms in the furtherance of a drug trafficking crime.
If convicted, defendants face a mandatory minimum sentence of up to 20 years imprisonment.
This case is being investigated by the Drug Enforcement Administration, Memphis Police Department Organized Crime Unit and Bartlett Police Department.
Special Assistant U.S. Attorney Joseph Griffith is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictments are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Oregon Couple and Tennessee Accomplice Indicted on Federal Drug Trafficking ChargesRead the Press Release
Jackson, TN – On May 21, 2018, a federal grand jury returned a two-count indictment charging three defendants with conspiracy to distribute large amounts of marijuana and one defendant with illegally possessing firearms. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictments today.
According to information presented in court, on May 17, 2018, the Jackson Metro Narcotics Unit received information about manufacturing marijuana at a residence in Madison County. Law enforcement discovered an active marijuana indoor grow operation inside the residence. From the residence and a tour bus located on the property, law enforcement seized 20 pounds of marijuana and three pounds of butane hash oil, a marijuana concentrate. They also seized 11 firearms, $7,000 in U.S. currency, and a Toyota Tacoma pickup truck, along with the tour bus.
The three defendants indicted and currently in custody on federal charges are:
William Brian Cisco, 43, Jackson, Tennessee
Michael Boutin, 58, Medford, Oregon
Tawni Boutin, 56, Medford, OregonCount 1 charges William Brian Cisco, Michael Boutin and Tawni Boutin with knowingly and intentionally manufacturing, attempting to manufacture, possessing with intent to distribute and attempting to possess with the intent to distribute marijuana and marijuana concentrates.
Count 2 charges William Brian Cisco with possession of a firearm in the furtherance of a drug trafficking crime.
The defendants, Mike Boutin and wife Tawni Boutin, have previously been featured as marijuana farmers on a television show called "Weed Country." Weed Country was an American reality television series on the Discovery Channel that premiered on February 20, 2013, during Discovery Channel’s programming block titled "Weed Wednesdays." The series followed dealers, growers and patients of the marijuana trade located within the Emerald Triangle, a remote fertile area on the border of Northern California and Oregon, along with the enforcers of the law at the Siskiyou County Sheriff’s Office. The series showed the battle between cops, dealers and the growers looking to engineer some of the most powerful marijuana on earth.
U.S. Attorney D. Michael Dunavant said; "In the Controlled Substances Act, Congress has generally prohibited the cultivation, distribution, and possession of marijuana. It has established significant penalties for these crimes which reflect Congress’s determination that marijuana is a dangerous drug and that marijuana activity is a serious crime. Here in the Western District of Tennessee, we are not ‘weed country,’ and this office will enforce the rule of law by prosecuting marijuana cultivation, distribution, and possession aggressively, consistently, and unapologetically."
Madison County Sheriff John Mehr said: "I commend the Jackson Metro Narcotics Unit for their hard work in this case and appreciate U.S. Attorney D. Michael Dunavant for the Western District of Tennessee for prosecuting this case. Especially, since this was a seizure of high grade marijuana brought into our county from out of state."
If convicted, the defendants face maximum sentences of up to 10 years imprisonment for the drug trafficking charge and up to 25 years imprisonment for the possession of firearm charge and $250,000 fine.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The Jackson-Madison County Metro Narcotics Unit investigated this case.
Assistant U.S. Attorney Matt Wilson is prosecuting this case on the government’s behalf.
Collierville Man Sentenced to 80 Months’ Imprisonment for Possession of Child PornographyRead the Press Release
Memphis, TN – A Collierville man was sentenced to 80 months in federal prison for possession of child pornography. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to information presented in court, on November 21, 2014, Detective Robert Erdely of the Western Pennsylvania Crimes Against Children Task Force was working in an undercover capacity, using specialized software to identify individuals possessing and sharing known images of child pornography using peer-to-peer file-sharing software. Erdely’s program identified a computer utilizing an I.P. address, which was later identified as being assigned to Patrick Harris of Collierville, Tennessee. A search of Harris’ residence yielded numerous electronic devices containing thousands of images of child pornography. Harris pleaded guilty to possession of child pornography in December 2017. On May 14, 2018, U.S. District Judge Sheryl H. Lipman sentenced Harris to 80 months in federal prison.
U.S. Attorney D. Michael Dunavant said: “With new and ever-changing technology, criminals are finding new and increasingly disturbing ways to victimize and exploit child victims. This case demonstrates that no matter where offenders are located, our Project Safe Childhood initiative and FBI partners will find them and hold them accountable for internet crimes against children.”
This case was investigated by the FBI and the Western Pennsylvania Crimes Against Children Task Force as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.
Assistant U.S. Attorney Kasey A. Weiland prosecuted this case on the government’s behalf.