Western District of Tennessee
Press releases recorded for this federal judicial district.
Federal Jury Convicts Two Gang Members with being unlawful users of Controlled Substance in Possession of FirearmsRead the Press Release
Memphis, TN – After a two and a half-day trial, a jury has convicted two gang members of illegally possessing firearms. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the conviction today.
According to the information presented at trial, on May 27, 2017, detectives with the Multi-Agency Gang Unit were conducting patrols at the Breath of Life Christian Center, 3795 Raleigh-Frayser, during the funeral of a known gang member. While at the scene, detectives observed a silver Toyota Camry enter the church parking lot. The driver exited and three other occupants remained in the vehicle. Jamal Bowens, 19, was seated in the rear driver side seat, and Lee Hope, 21, in the rear passenger’s seat. The defendants are known gang members who regularly use controlled substances.
Detectives approached the vehicle and immediately smelled a strong odor of marijuana. Law enforcement also discovered a marijuana cigar located in the seat between Bowen and Hope and a Rossi .357 revolver on the floorboard under Bowen’s feet. The occupants were then removed from the car. Upon a search of Hope’s person, a stolen Smith and Wesson .40 caliber pistol was recovered.
U.S. Attorney D. Michael Dunavant said: "Based upon Attorney General Sessions’ announced priority for violent crime reduction, this office has resolved to be more aggressive and creative in using all of the applicable federal statutes to charge firearms offenses, and this case is a prime example of that commitment. I want to commend our law enforcement partners as we continue to work together to bring to justice those causing havoc throughout the Western District of Tennessee by the illegal use and possession of firearms. As this conviction demonstrates, if you are a gang member intent on committing crimes with a firearm in this district, rest assured you will be brought to justice. Gun Crime is Max Time."
The defendants face a maximum penalty of ten years in imprisonment and a $250,000 fine. Sentencing is set for April 27, 2018, before the Honorable Sheryl H. Lipman.
Lee Hope currently has cases pending for criminal attempt first-degree murder, in concert, and reckless endangerment with a deadly weapon in Shelby County Criminal Court.
Jamal Bowens has cases pending for aggravated robbery and criminal attempt first-degree murder in Shelby County Criminal Court.
This case was investigated by the Multi-Agency Gang Unit, Memphis Police Department, Shelby County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Marques Young is prosecuting this case on the government’s behalf.
West Tennessee Dentist Sentenced to Federal Prison for Tax EvasionRead the Press Release
Memphis, TN – A Shelby County, Tennessee, resident was sentenced to 12 months in prison today for evading payment of taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.
According to documents and information provided to the court, Andrea M. Henry, 45, owned the Henry Polk Dental Group D.P.C. and the Smile Spa LLC, dental practices located in Cordova, Tennessee. Henry filed personal income tax returns for 2005, 2006, 2008 and 2010 to 2013, but did not pay $113,781 in income and self-employment taxes due to the Internal Revenue Service (IRS). Henry also failed to pay over the employment taxes withheld from her employees’ paychecks for numerous quarters between 2006 and 2015. The IRS assessed over $160,000 in trust fund recovery penalties against Henry, making her personally liable for the unpaid employment taxes.
Instead of paying the taxes owed, Henry spent hundreds of thousands of dollars on personal expenses, including private school tuition, expensive housing, and luxury cars. After the IRS assessed penalties against her, Henry stopped using personal bank accounts and instead began using business accounts to pay for personal expenses. In early 2011, prior to her home being foreclosed on, Henry transferred $130,000 to a nominee buyer, entered a sham lease arrangement with the nominee to create a false explanation as to the source of the funds in the nominee’s bank account, and caused the nominee to repurchase the home for her. Henry later used that same nominee and other nominees to purchase and lease exotic cars, including a Dodge Viper and a Porsche Panamera. Henry admitted to causing a tax loss of $528,882.07.
In addition to the term of prison imposed, U.S. District Judge John T. Fowlkes, Jr. ordered Henry to serve three years of supervised release and to pay $653,116.78 in restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney D. Michael Dunavant commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Damon Griffin of the Western District of Tennessee, who prosecuted the case.
Tennessee Dentist Sentenced to Prison for Tax EvasionRead the Press Release
A Shelby County, Tennessee, resident was sentenced to 12 months in prison today for evading payment of taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Michael Dunavant for the Western District of Tennessee.
According to documents and information provided to the court, Andrea M. Henry, 45, owned The Henry Polk Dental Group D.P.C. and The Smile Spa LLC, dental practices located in Cordova, Tennessee. Henry filed personal income tax returns for 2005, 2006, 2008, and 2010 to 2013, but did not pay $113,781 in income and self-employment taxes due to the Internal Revenue Service (IRS). Henry also failed to pay over the employment taxes withheld from her employees’ paychecks for numerous quarters between 2006 and 2015. The IRS assessed over $160,000 in trust fund recovery penalties against Henry, making her personally liable for the unpaid employment taxes.
Instead of paying the taxes owed, Henry spent hundreds of thousands of dollars on personal expenses, including private school tuition, expensive housing, and luxury cars. After the IRS assessed penalties against her, Henry stopped using personal bank accounts and instead began using business accounts to pay for personal expenses. In early 2011, prior to her home being foreclosed on, Henry transferred $130,000 to a nominee buyer, entered a sham lease arrangement with the nominee to create a false explanation as to the source of the funds in the nominee’s bank account, and caused the nominee to repurchase the home for her. Henry later used that same nominee and other nominees to purchase and lease exotic cars, including a Dodge Viper and a Porsche Panamera. Henry admitted to causing a tax loss of $528,882.07.
In addition to the term of prison imposed, U.S. District Court Judge John T. Fowlkes, Jr. ordered Henry to serve three years of supervised release and to pay $653,116.78 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Dunavant commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Damon Griffin of the Western District of Tennessee, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Statement from U.S. Attorney D. Michael Dunavant, Western District of Tennessee on the Federal Government ShutdownRead the Press Release
Memphis, TN –"The Department of Justice is comprised of about 40 components that have a broad array of national security, law enforcement, and criminal justice system responsibilities. Therefore, a significant portion of the Department’s mission relates to the safety of human life and the protection of property, and primarily for this reason, the Department has a high percentage of activities and employees that are excepted from the Anti-deficiency Act restrictions and can continue during a lapse in appropriations. The U.S. Attorney’s Office for the Western District of Tennessee is implementing the Contingency Plan of the Department of Justice to identify and furlough certain non-excepted employees during the period of the government shutdown. However, citizens can be assured that the essential federal law enforcement, criminal prosecution, and national security functions of this office will continue as usual in order to preserve and protect public safety in West Tennessee."
Gangster Disciple “Governor” Sentenced to 360 Months in Federal PrisonRead the Press Release
Jackson, TN – A Gangster Disciple member was sentenced to 360 months imprisonment and five years of supervised release for conspiring to participate in a racketeering enterprise.
Attorney General Jeff Sessions, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney D. Michael Dunavant of the Western District of Tennessee, Special Agent in Charge, Michael T. Gavin of the Federal Bureau of Investigation (FBI) and Acting Special Agent in Charge Jack Webb of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), made the announcement.
Byron Montrail Purdy, a/k/a "Lil B" or "Ghetto," 38, of Jackson, Tennessee, was sentenced by U.S. District Judge John T. Fowlkes, Jr. Purdy previously pleaded guilty to conspiracy to participate in racketeering activity.
United States Attorney D. Michael Dunavant said: "Attorney General Sessions has made it clear that the top priority for the Department of Justice is violent crime reduction, and here in the Western District of Tennessee, we are vigorously pursuing that priority by using the full complement of government resources and partnering with local and state law enforcement to disrupt racketeering conspiracies and dismantle criminal gangs. This case demonstrates our resolve to aggressively prosecute those who engage in organized criminal enterprises and gang conspiracies to commit violent crimes and narcotics and weapons offenses in furtherance of racketeering. This office is proud to work with our federal, state and local law enforcement partners to disrupt the Gangster Disciples gang and hold them accountable for the violence and lawlessness that they perpetrate across West Tennessee. The message from this case is clear: If you are a member of a criminal gang, your days are numbered, and there will be a reckoning."
The Gangster Disciples is a highly organized national gang active in more than 24 states. The scope of the Gangster Disciples’ crimes is wide-ranging and consistent throughout its national operation. The gang protects its power through threats, intimidation, and violence, including murder, attempted murder, assault, and obstruction of justice. Members and associates of the gang are subject to a strict code of discipline and are routinely fined, beaten, and even murdered for failing to follow the gang’s rules. The Gangster Disciples promotes its enterprise through member-only activities and provides financial and other support to members charged with or incarcerated for gang-related offenses or who are fugitives from law enforcement.
The highest-ranking Gangster Disciple within the State of Tennessee holds the title of "Governor." The Governor manages gang activities within Tennessee and is responsible for coordinating much of the criminal activity that occurs within the state.
Acting ATF Special Agent in Charge Jack Webb remarked, "ATFs priority of reducing violent crime is a result of the sentencing of the criminal element that have preyed on our communities. The collaborative efforts of law enforcement and the U.S. Attorney’s Office continue to provide a safe environment for the public."
"We focus our investigations on the leadership of the criminal organizations that sell and distribute illegal drugs and use violence against anyone who gets in their way," said Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "This sentencing is the result of the dogged efforts and precision investigating by the FBI and our law enforcement partners to disrupt and dismantle criminal organizations that prey on our communities."
According to his plea agreement, Purdy was a ranking member of the Gangster Disciples and at time of indictment and arrest on this case served as the Governor for the State of Tennessee. As the highest leader for the Gangster Disciples, Purdy directed other members and associates of the gang to carry out unlawful activities in furtherance of the conduct of the gang’s affairs. Purdy was responsible for coordinating criminal activities with other Gangster Disciples gang leaders throughout the United States, supervising the criminal activities of the gang, issuing orders to kill rivals and disobedient gang subordinates, and presiding over Gangster Disciples meetings.
Captain Phillip Kemper of the Jackson Police Department’s Special Operations Division said: "Today’s sentence of 30 years for Byron Purdy’s gang activity should send a serious warning to gang members of all factions in Jackson, Memphis and throughout West Tennessee that their continued reign of terror through actions of violence, intimidation, and all manner of firearms and narcotics trafficking will eventually come to an end. This investigation of Purdy included crimes involving racketeering activity, which spanned two and half decades. Byron Purdy, who was the head of the Gangster Disciple enterprise for the State of Tennessee will now spend the majority of his adult life in Federal Prison. Gang life only leads to two places: the grave, or prison for an extended period of time. Jackson, West Tennessee and the United States of America are safer places today as a result of this sentence."
Purdy also participated directly in the activities of the gang, including acts involving murder, kidnapping, assault, narcotics distribution, intimidation of witnesses, and weapons trafficking. Purdy’s participation in the criminal activities of the Gangster Disciples spanned approximately twenty years.
This case was investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); the Memphis Multi-Agency Gang Unit; Memphis Police Department; Shelby County Sheriff’s Office; Jackson Police Department Gang Enforcement Team; Tennessee Bureau of Investigation; Madison County Sheriff’s Department; 28th District West Tennessee Drug Task Force; Tipton County Sheriff’s Office; 26th Judicial District Attorney General’s Office; 25th Judicial District Attorney General’s Office; Atascosa County District Attorney’s Office; and the Shelby County District Attorney General’s Office.
Assistant U.S. Attorneys Beth Boswell of the Western District of Tennessee and Samuel Stringfellow of the Northern District of Mississippi and Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section are prosecuting this case on the government’s behalf.
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Western District of Tennessee to Receive Two Additional Federal Prosecutors to Fight Violent CrimeRead the Press Release
Memphis, TN – The Western District of Tennessee will receive two additional federal prosecutors to combat violent crime in the district, announced United States Attorney D. Michael Dunavant.
As one of many steps Attorney General Sessions has announced to counter the surge in violent crime afflicting communities across our country, the Department of Justice is allocating 40 Assistant United States Attorney positions to U.S. Attorney’s Offices nationwide. These prosecutors will be solely focused on bringing violent criminals to justice through aggressive enforcement of federal laws.
The Western District of Tennessee is receiving two of the new dedicated positions. One of the additional prosecutors will be assigned to the Memphis office, and the other will be assigned to the Jackson office.
United States Attorney Dunavant said, "To those communities in the Western District that have been besieged by gangs and violent crime, I am thrilled to say that help is on the way. These dedicated prosecutors – working closely with our law enforcement partners – will help incapacitate violent offenders and remove them from our streets. I look forward to filling these slots promptly and putting these additional resources to work for the citizens of West Tennessee."
Violent crime is on the rise in Memphis and Jackson. For example, Memphis saw 228 murders and a major violent crime increase of 25% last year. And the violence is not confined to Memphis and Jackson. Other cities and communities in West Tennessee such as Dyersburg, Savannah, and Covington have also seen recent increases in these areas. These increases in violent crime led the Department to select Memphis and Jackson as two of the 12 cities in the National Public Safety Partnership (PSP). The Western District is the only district to have two cities selected for this program.
These two new AUSA positions will complement the Department’s ongoing enforcement efforts in West Tennessee. They will also be instrumental as the U.S. Attorney’s Office recommits to initiatives that have worked in the past to reduce violent crime, such as the Project Safe Neighborhoods program.
Federal Jury Convicts Former Sheriff’s Deputy on Three Counts, including Solicitation to Tamper with a WitnessRead the Press Release
Memphis, TN – After eight days of trial before U.S. Senior District Judge Samuel H. Mays, a federal jury convicted Jeremy Drewery of one count of Hobbs Act Extortion; one count of Receipt of a Bribe by a Government Agent; and one count of Solicitation to Tamper with a Witness. United States Attorney D. Michael Dunavant announced the guilty verdict today.
Jeremy Drewery, 42, of Arlington, Tennessee, was indicted last September for attempting to extort thousands of dollars from an alleged drug dealer in August of 2016. In July, additional charges were added to the indictment, which alleged that the defendant solicited a person to kill the witness in the extortion case.
United States Attorney D. Michael Dunavant said: "Official misconduct and corruption by law enforcement officers in positions of trust and authority undermine the foundational integrity of our government institutions. We must root out, expose, and hold accountable those officials who violate the public trust by corrupt acts of extortion, bribery, and witness tampering, and this verdict does just that."
Drewery was assigned to the Shelby County Sheriff’s Office’s Narcotics Division at the time of these events, but has since been terminated from the department. The evidence at trial showed that after executing a search warrant on the home of an alleged drug dealer, Drewery demanded money from the man. In exchange, Drewery would not institute a criminal case on the man. The alleged drug dealer contacted the FBI, which began an investigation. Over the course of three weeks, Drewery met with the alleged drug dealer and received a total of $8,000. Each of the meetings and numerous phone calls between Drewery and the alleged drug dealer were recorded.
"Law enforcement corruption undermines the public trust and can threaten the overall safety of our community," said Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "The FBI holds, as one of its highest priorities, the investigation of corrupt members of law enforcement. This conviction is the result of the hard work and diligence of the honest law enforcement officers and agents of the Tarnished Badge Task Force, who like the overwhelming majority of law enforcement officers, put their lives on the line day in and day out to protect, serve, and maintain public trust."
The evidence at trial also showed that, after Drewery’s arrest on the attempted extortion, he paid a confidential informant $2,000 to solicit a person to kill the alleged drug dealer.
Sentencing is scheduled for Friday, March 30, 2018, before U.S. Senior District Judge Mays. Drewery faces up to 20 years in federal prison and a fine of up to $250,000.
This case was investigated by the Tarnished Badge Task Force, which is comprised of investigators from the FBI, Memphis Police Department and the Shelby County Sheriff’s Office.
Assistant U.S. Attorneys Reagan M. Taylor and Mark Erskine are prosecuting this case on the government’s behalf.
Twenty Illegal Aliens Indicted on Federal Document Fraud ChargesRead the Press Release
Memphis, TN – D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced today that 20 individuals have been indicted for working under false identities.
On November 28, 2017, law enforcement arrested 20 illegal aliens working under false identities. A Memphis employment agency, Provide Staffing, assigned multiple employees to Expeditors International, a freight forwarder based in Memphis.
In the course of their regular duties, Transportation Security Administration inspectors in Memphis noticed anomalies in Security Threat Assessment paperwork submitted on behalf of Provide Staffing workers on contract to Expeditors International, and referred their findings to Immigration and Customs Enforcement and the Tennessee Department of Safety and Homeland Security.
Tennessee Highway Patrol’s (THP) Criminal Investigative Division investigated and arrested these 20 individuals on state charges. ICE Homeland Security Investigations conducted a parallel investigation in coordination with TSA and other law enforcement agencies.
As a result of that investigation, the defendants are alleged to have presented fraudulent documents, between March 2016 and January 2017, to certify their identity and eligibility to work in the United States.
The Immigration and Reform Act of 1986, amended, and the Immigration and Nationality Act together require employers to verify the identity and employment eligibility of their employees using a prescribed form, Form I-9, and require that employees present documents to verify their identity and eligibility to work in the United States. Each defendant is charged with knowingly using a false identification document as evidence of
his or her employment eligibility, in violation of Title 18, United States Code, Section 1546 (a) or Section 1546(b) (2).
United States Attorney D. Michael Dunavant said: "In April, the Attorney General announced a renewed commitment by the Department of Justice to consistently and vigorously pursue criminal immigration enforcement, in order to disrupt organizations and deter unlawful conduct. This priority includes the aggressive prosecution of aggravated identity theft, document fraud, and misuse of visas and permits in the immigration context. These indictments fulfill that priority, protect critical infrastructure sites, and promote lawfulness in our immigration system."
"Individuals that utilize fraudulent identification to obtain restricted access to our nation’s transportation network, whether air, sea, or rail, create a vulnerability to our national supply chain," said Assistant Special Agent in Charge Robert Hammer, who oversees HSI’s efforts in Tennessee. "HSI will continue to partner with our federal and state law enforcement partners to protect our critical infrastructure from exploitation."
The 20 defendants indicted on federal charges include:
Jamie Ramundo Martinez, a/k/a/ Angel Martinez, 36, Guatemala
Pedro Garcia-Guaneros, a/k/a/ Pedro Garcia, 34, Mexico
Oscar Tepole-Sanchez, a/k/a/ Oscar Tepole, 36, Mexico
Hilda Hernandez-Garduno, a/k/a/ Hilda Hernandez, 37, Mexico
Angel Calmo-Aguilar, a/k/a/ Angel Calmo, 24, Guatemala
Edgar Lopez-Marin, a/k/a/ Edgar Lopez, 37, Mexico
Fernando Ramos-Jacobo, a/k/a/ Fernando Ramos, 27, Mexico
Willivaldo Arenales-Soriano, a/k/a/ Wilibaldo Arenales, 35, Mexico
Fernando Alexi Duran-Reyes, a/k/a/ Eduardo Duran, 43, Honduras
Ramon Paz-Peredes, a/k/a/ Ramon Paz, 47, Honduras
Josue Vaca-Alvarodo, a/k/a/Pedro Cordero, 41, Honduras
Arturo Robles-Larios, 36, Mexico
Sixto Landaverde-Rodriguez, a/k/a/ Sixto Rodruguez, 42, Mexico
Rodolfo Hernandez-Sanchez, a/k/a/ Leonel Sanchez, 37, Mexico
Henry Calmo-Aguilar, a/k/a/ Henry Calmo, 22, Guatemala
Eligio Lopez-Acevedo, 34, Mexico
Artemio Moreno-Gordillo, a/k/a/ Artemio Moreno, 44, Mexico
Jose Moreno-Martinez, 25, Mexico
Marlon Martinez-Martinez, a/k/a/ Marlon Martinez, 36, Honduras
Raquel Delin-Ramos, a/k/a/ Raquel Delin, 32, MexicoIf convicted, the defendants face a maximum five years imprisonment; $250,000 fine and 3 years supervised release to begin after incarceration.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
These cases were investigated by the Homeland Security Investigations, Transportation Security Administration and Tennessee Highway Patrol. Assistant U.S. Attorney Lauren Delery is prosecuting this case on the government’s behalf.
Media NotificatonRead the Press Release
WHAT: D. Michael Dunavant, United States Attorney Western District of Tennessee, and Robert Hammer, Assistant Special Agent in Charge, Homeland Security Investigations, will make an announcement regarding the Department of Justice’s investigation into Criminal Immigration Enforcement. DATE: Wednesday, December 13, 2017 TIME: 3:30 p.m. WHERE: United States Attorney’s Office – Main Conference Room
Clifford Davis Odell Horton Federal Building
167 North Main Street, Suite 800
Memphis, TN 38103NOTE: All media members must present government-issued photo I.D. (such as driver’s license), as well as valid media credentials.
Media are requested to RSVP to [email protected]. The conference room will be available for media to set up at 2:30 p.m. Everything must be pre-set by 3:00p.m. Press inquiries regarding logistics should be directed to Cherri Green at 901-969-2948.
Tennessee Woman Sentenced to Sixty Months for Aiding and Abetting an Attempt to Kidnap Judge and SheriffRead the Press Release
Memphis, TN – Patricia Parsons, 50, of Brighton, Tennessee, was sentenced to sixty months in federal prison for aiding and abetting solicitation to commit kidnapping. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.
According to the facts revealed during the plea hearing in September 2017, from February 2017 through May 2017, Parsons conspired with Suzanne Holland, a self-appointed Chief Justice of the Universal Supreme Court of the Tsilhquot’ in Nation in Canada, to kidnap a Tipton County judge and a Nebraska sheriff.
United States Attorney D. Michael Dunavant said: "The U.S. Attorney’s Office takes any threats against law enforcement, the courts and public officials very seriously. The defendant’s disturbing conduct in this potentially violent case strikes at the very heart of our justice system, and we are pleased that she has been held accountable for her role in this unusual kidnapping attempt."
On January 10, 2017, Michael Parsons (the defendant’s husband) was scheduled to appear in state court in Tipton County, Tennessee on two counts of being a felon in possession of a firearm. Mr. Parsons did not show up for court, removed the ankle monitor and fled the jurisdiction. Two days later, he was located and arrested in a small airport in Arapahoe, Nebraska after flying himself there in a plane.
On February 16, 2017, FBI New Orleans received information that Suzanne Holland, self-appointed Chief Justice of the Universal Supreme Court of the Tsilhqot’ in Nation in Canada, was attempting to hire a bounty hunter to kidnap Sheriff Kurt Kapperman of Furnas County, Nebraska and Judge Joseph Walker of Tipton County, Tennessee and to break Mr. Parsons out of jail. Ms. Holland contacted an FBI Confidential Source in New Orleans, Louisiana and solicited the source to execute what were purported to be duly-
issued "arrest warrants" for the sheriff and judge issued by the Tsilhqot’ in Nation. Holland emailed "arrest warrants" to the source along with an "order to release Michael Parsons from jail." Further investigation revealed that the Tsilhqot’ in Nation was a Sovereign Citizen Group located on the Indian reservation in British Columbia, Canada.
On February 17, 2017, Ms. Holland provided a telephone number for the source to facilitate further discussions. FBI Memphis determined this number to be that of Mr. Parson’s wife, defendant Patricia Parsons.
Based on initial telephone conversations, Ms. Holland and the source agreed to draft a contract, signed by both parties, describing duties and payments. A final negotiated price of $250,000 was agreed upon for the arrest of the sheriff and judge and the facilitating release of Mike Parsons from jail. Mike Parsons was described as an Associate Justice of the Tshilhqot’ in Nation.
On February 23, 2017, the source and Ms. Holland agreed on an initial payment of $5,000 to begin arranging all travel and other details related to the operation. Holland told the source that Patricia Parsons would have the money and be available to meet in Memphis. On March 6, 2017, the source advised Holland that a business associate would meet Patricia Parsons to coordinate the payment. An amended contract was drawn up and signed by both parties. The source then contacted Patricia Parsons to discuss the transaction.
On March 3, 2017, Ms. Holland requested the source to accept a Corvette in lieu of the $5,000 payment. The Corvette was owned by the Parsons and located on Patricia Parsons’ property in Brighton, Tennessee. In telephone conversations, Patricia Parsons advised that the Corvette had some problems but was worth approximately $7,000. Three days later, during a series of phone calls, the source advised the defendant that an associate was traveling to the Parsons’ property to complete the payment transaction.
Further the source explained to Parsons what the overall operation would entail, including: selling the vehicle to help fund the operation; breaking Mr. Parsons out of jail; kidnapping the Tennessee judge (who was scheduled to preside over her husband’s impending trial) and the Nebraska sheriff; using the plane to transport the abducted individuals to Holland in Canada; and using 30 operatives divided into two teams to accomplish these objectives.
During these calls, defendant Parsons advised that her phone was tapped by the FBI and agreed to call the source on another phone. The defendant called on a different line and indicated that she was ok with the source taking the vehicle and using the plane in Nebraska "as long as the FBI don’t come knockin at my door again." The source explained that the operatives would need to go to Canada because "once we kidnap a judge and a sheriff, our heads are gonna be on the choppin block… and once we do what we gotta do we can never come back." After these discussions, the defendant agreed to meet one of the operatives to complete the transaction.
On March 6, 2017, an undercover FBI employee posing as an associate of the source exchanged phone calls with the defendant and subsequently met at her residence in Brighton, Tennessee to obtain the Corvette. Due to the fact that the Corvette was inaccessible at the residence, the defendant agreed to provide the associate a 1991 Ford Ranger truck as the down payment for the operation. Parsons could not find the title but signed a note transferring ownership of the vehicle and gave the associate keys to the truck.
Between March 11 and March 15, 2017, the associate made three separate telephone calls to Parsons in order to gain further information on Tipton County Judge Joseph Walker. The associate asked about an address and photo of the judge’s house. The defendant responded that she did not know the specific address but that the judge’s name was "Joseph Walker III" and advised that he was located in Ripley, Tennessee in Lauderdale County. She also agreed to find out more information on the judge. On another call, the defendant advised the associate about a Ripley P.O. Box for the judge and stated he presided over courts in Tipton, Lauderdale, Hardeman, Fayette and one other county. At no time did Parsons attempt to notify any authorities of the impending plot to kidnap a sheriff and judge and free Mr. Parsons from jail.
On December 12, 2017, U.S. District Judge Sheryl H. Lipman sentenced Parsons to 60 months imprisonment and two years’ supervised release to begin after her term of incarceration.
This case was investigated by the FBI’s Joint Terrorism Task Force. Assistant U.S. Attorney Stephen Hall prosecuted this case on the government’s behalf.
Former Physician’s Office Employee Charged in Fraud SchemeRead the Press Release
Memphis, TN – A federal grand jury returned an indictment against a former data entry clerk for Crescent Medical Corporation, U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced today.
According to the indictment, Gloria Harris, 55, was employed as a data entry clerk at Crescent Medical Corporation, which was solely owned by Dr. Ahsan Kathawala. The indictment alleges that between January 2016 and March 2017, Harris fraudulently obtained $292,500 by stealing checks payable to Crescent and depositing them to bank accounts at Trustmark Bank and Suntrust Bank which she had fraudulently opened in the name of Crescent without Dr. Kathawala’s knowledge or authorization.
In addition to the bank fraud charge associated with the scheme to deposit the stolen checks, the indictment also alleges that Harris fraudulently used Social Security Numbers which did not belong to her to update a residential apartment lease and to open bank accounts at Trustmark and Suntrust.
Harris faces up to 30 years’ imprisonment; a one million dollar fine and 5 years supervised release on the bank fraud charge. Each charge of fraudulent use of Social Security Number carries a maximum penalty of 5 years’ imprisonment; a $250,000 fine and 3 years supervised release.
This case was investigated by the United States Secret Service Economic Crimes Task Force. Assistant U.S. Attorney Carroll L. Andre’ III is prosecuting this case on the government’s behalf.
Former InSouth Bank Employee Sentenced for Embezzling Almost $900,000Read the Press Release
Memphis, TN – A former InSouth bank employee was sentenced by United States District Judge Sheryl H. Lipman to serve 33 months in federal prison in connection with her embezzlement of $890,000. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
Lauren Melissa McDivitt, 41, of Covington, Tennessee pled guilty in August to charges filed by the U.S. Attorney’s Office that she embezzled $888,470 between 2006 and 2016, while employed as Branch Administrator at InSouth’s Atoka, Tennessee branch.
According to information presented in court at the time of her plea, McDivitt accomplished the theft by creating false and fraudulent withdrawal tickets to make it appear that bank customers with IRA and CD accounts were withdrawing funds. To conceal theft, McDivitt signed customers up to receive monthly statements online via email, and linked the customer accounts to a dummy/fake e-mail account where the statements, which reflected the unauthorized withdrawals, would be e-mailed.
McDivitt thereafter prepared fraudulent monthly statements, which reflected interest accrued, but omitted her unauthorized withdrawals. McDivitt mailed the fraudulent statements to the customers. In some instances, McDivitt also made internal transfers between accounts on various customers to cover amounts she had taken from other customers.
U.S. Attorney D. Michael Dunavant said: “The long term financial fraud and embezzlement committed by the defendant is disturbing and far-reaching. The abuse of her position of trust and authority as a small town bank manager for her own personal gain had a significant negative impact on the employees and customers of InSouth Bank, as well as the whole Atoka and Tipton County community. The U.S. Attorney’s Office places a high priority on protecting the security, deposits and assets of financial institutions, and this sentence demonstrates that commitment.”
As part of her sentence, McDivitt was also ordered to pay restitution in the amount of $947,951.30 to InSouth Bank and to serve a period of 3 years of supervised release to begin after her incarceration.
This case was investigated by the Atoka, Tennessee Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorney Carroll L. Andre’ III prosecuted this case on the government’s behalf.
Local Staffing Company Operator Convicted of Employment Tax FraudRead the Press Release
Memphis, TN – On Friday, December 8, 2017, a Memphis staffing company operator was convicted by a federal jury for conspiring to defraud the United States, failing to pay over employment taxes, filing fraudulent employment tax returns, theft of government funds and aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.
According to information presented in court, from 2005 through 2015, Mark Stinson and his wife, Jayton Stinson, operated a temporary staffing company in Memphis that provided services to businesses in Tennessee and elsewhere. The staffing company’s standard contract with its customers provided that the staffing company was responsible for withholding employment tax from its employees’ wages and paying over the amounts withheld to the Internal Revenue Service (IRS).
The Stinsons failed to pay over $2.8 million in withholdings and other employment taxes due to IRS, failed to timely file employment tax returns and filed false employment tax returns. In an effort to avoid making payments to the IRS the Stinsons changed the name and structure of the company multiple times after accumulating employment tax liabilities, operating as Connex Staffing and Janitorial Service, Connexx Staffing Services LLC, Connexx Staffing Services Inc., and Complete Employment Agency.
The Stinsons also conspired to impede efforts by the IRS to collect on the employment tax liabilities owned by their companies. For example, the Stinsons made false representations to the IRS about their control of the staffing company and their knowledge of their responsibility to truthfully account for and pay over the employment taxes, placed the staffing company in the names of nominees who did not have control over the business operations, and established payment arrangements intended to impede an IRS levy placed on their customer payments. The Stinsons used the withheld funds to pay for personal expenses, including a Mercedes-Benz, a Cadillac Escalade, mortgage
payments and private school tuition for their children. Jayton Stinson previously pleaded guilty to conspiracy charges in connection with this case.
Mark Stinson also filed a fraudulent tax return for a relative that included a false dependent seeking a refund to which the relative was not entitled. Stinson received a substantial portion of the fraudulent refund.
U.S. District Court Judge John T. Fowlkes, Jr., scheduled sentencing for March 1, 2018. Mark Stinson faces a statutory maximum sentence of five years in prison for each count of conspiracy, theft of government funds and failing to pay over employment taxes, three years in prison for each count of filing a false tax return, and a mandatory two years in prison for aggravated identity theft. He also faces a period of supervised release, restitution and monetary penalties. Jayton Stinson is scheduled to be sentenced on January 31, 2018.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Dunavant commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Damon Griffin and Trial Attorney Nathan Brooks, who are prosecuting the case.
Tennessee Staffing Company Operator Convicted of Employment Tax FraudRead the Press Release
A Tennessee temporary staffing company officer was convicted today by a federal jury in Memphis of conspiring to defraud the United States, failing to pay over employment taxes, filing fraudulent employment tax returns, theft of government funds and aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.
According to the evidence presented at trial, from 2005 through 2015, Mark Stinson and his wife, Jayton Stinson, operated a temporary staffing company in Memphis that provided services to businesses in Tennessee and elsewhere. The staffing company’s standard contract with its customers provided that the staffing company was responsible for withholding employment tax from its employees’ wages and paying over the amounts withheld to the Internal Revenue Service (IRS).
The Stinsons failed to pay over $2.8 million in withholdings and other employment taxes due to IRS, failed to timely file employment tax returns and filed false employment tax returns. In an effort to avoid making payments to the IRS the Stinsons changed the name and structure of the company multiple times after accumulating employment tax liabilities, operating as Jayton Stinson Connex Staffing & Janitorial Service, Connexx Staffing Services LLC, Connexx Staffing Services Inc., and Complete Employment Agency.
The Stinsons also conspired to impede efforts by the IRS to collect on the employment tax liabilities owed by their companies. For example, the Stinsons made false representations to the IRS about their control of the staffing company and their knowledge of their responsibility to truthfully account for and pay over the employment taxes, placed the staffing company in the names of nominees who did not have control over the business operations, and established payment arrangements intended to impede an IRS levy placed on their customer payments. The Stinsons used the withheld funds to pay for personal expenses, including a Mercedes-Benz, a Cadillac Escalade, mortgage payments and private school tuition for their children. Jayton Stinson previously pleaded guilty to conspiracy charges in connection with this case.
Mark Stinson also filed a fraudulent tax return for a relative that included a false dependent seeking a refund to which the relative was not entitled. Stinson received a substantial portion of the fraudulent refund.
U.S. District Court Judge John T. Fowlkes, Jr. scheduled sentencing for March 1, 2018. Mark Stinson faces a statutory maximum sentence of five years in prison for each count of conspiracy, theft of government funds and failing to pay over employment taxes, three years in prison for each count of filing a false tax return, and a mandatory two years in prison for aggravated identity theft. He also faces a period of supervised release, restitution and monetary penalties. Jayton Stinson is scheduled to be sentenced on Jan. 31, 2018.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Dunavant commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Damon Griffin and Trial Attorney Nathan Brooks, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Man Sentenced to 9 Years Imprisonment for Being a Felon in Possession of a Firearm and Assaulting a Jackson Police OfficerRead the Press Release
Jackson, TN – Jeremy Seville Hall was sentenced to 9 years in federal prison for being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on December 26, 2016, an officer with the Jackson Police Department (JPD) conducted a traffic stop on a silver Kia Spectra that had a non-functioning driver’s side brake light. During the stop, the defendant, a backseat passenger in the vehicle, was found to have active warrants for his arrest. Hall opened the rear left passenger door and fled the area on foot while wearing a backpack.
The police officer gave chase and attempted to take Hall into custody. He assaulted the officer, putting him in a chokehold and attempted to flee while emptying the contents of the backpack. When additional officers arrived on the scene, they obtained control of Hall. Officers then noticed a Glock 27, .40 –caliber pistol on the ground at Hall’s feet. A search of Hall’s person, revealed two additional .40 caliber rounds of ammunition in the right front pocket of his pants. The firearm had been reported stolen from Brownsville, TN., on February 28, 2016.
United States Attorney D. Michael Dunavant said: "By collaborating with our law enforcement partners we will use every available resource to ensure the safety of our citizens. If you choose to illegally possess firearms anywhere within the 22-counties of the Western District of Tennessee, you will be met with aggressive and unrelenting federal prosecution. The professionals in the U.S. Attorney’s Office along with law enforcement partners are committed to aggressively removing individuals from our communities that commit these and other horrific crimes. This is our mission. Gun Crime is Max time."
On November 27, 2017, the Honorable S. Thomas Anderson, Chief United States District Court Judge, sentenced Hall to 9 years imprisonment and 3 years supervised release to begin after his incarceration. His sentence included a sentencing enhancement for assaulting a law enforcement officer during the offense.
"The Jackson Police Department is committed to working with the U.S. Attorney’s Office and our federal partner law enforcement agencies to continue to target violent individuals who commit crimes with guns. If you commit a crime in Jackson with a firearm that violates federal laws, you can expect to face the consequences."
The Jackson Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; and the U.S. Attorney’s Office, who have all worked jointly to address gun-related crimes through aggressive investigation and prosecution, investigated this case.
Assistant U.S. Attorney Taylor Eskridge is prosecuting this case on the government’s behalf.
Government Contractor Convicted of Major Fraud against the United StatesRead the Press Release
Memphis, TN – After two days of the trial before U.S. District Judge John T. Fowlkes, Jr., the defendantM. Cleve Collins entered a plea of guilty to the indictment charging him with one count of major fraud against the United States. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the conviction today.
According to the indictment, M. Cleve Collins, aka Milton Cleve Collins aka Cleve Collins, 54, executed a scheme to defraud the United States on a construction contract valued at approximately one and one-half million dollars administered by the General Services Administration for the replacement of the roof and the air conditioning system at the Ed Jones Federal Courthouse and Post Office in Jackson, TN.
As part of the scheme to defraud, Collins caused the roofing subcontractor, a small Memphis-area business, to perform work for which he was never fully paid. Additionally, Collins filed false and fraudulent certifications with the U.S. Government indicating he had, in fact, paid the subcontractor. The value of the funds obtained because of this scheme was over $580,000.
"As the legal representative of the United States of America, it is the priority and duty of the U.S. Attorney’s Office to safeguard taxpayer funds, and to promote the responsible use and stewardship of such government resources for the benefit of our nation and our citizens. The major fraud committed by the defendant in this case is a serious crime of dishonesty and deceit that strikes at the very heart of those national interests, and will not be tolerated. The GSA and the FBI are to be commended for their diligent investigative work in uncovering and exposing this fraud, and I am pleased that we have achieved justice by holding the defendant accountable under the law," said D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee.
On November 17, 2016, Collins was indicted on one count of violation of major fraud against the United States. The sentencing hearing is set for March 1, 2018. The maximum penalty for major fraud against the United States is not more than 10 years, not more than a $5,000,000 fine, 3 years supervised release and a special assessment of $100.
"Federal contractors are obligated to follow through on their promises to make payments to their subcontractors," said GSA Inspector General Carol Fortine Ochoa. "When contractors fail to meet their obligations, we will hold them accountable."
"The FBI takes particular interest in cases where individuals, for their own personal benefit, use deceit and fraud to line their pockets," said Michael T. Gavin, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. "Fraud has a negative and long lasting impact on the community, and the honest and law abiding citizens who are fed up with the likes of those who, motivated merely by greed, violate the law, should be assured by this conviction that the FBI is committed to work closely with its law enforcement partners to vigorously pursue anyone who commits such crimes."
This case was investigated by Special Agent Steve Heckler of the General Services Administration, Office of the Inspector General and Special Agent Brent Hayden of the FBI. Assistant U.S. Attorney Tony Arvin is prosecuting this case on the government’s behalf.
Five Defendants Indicted on Federal Drug Trafficking and Money LaunderingRead the Press Release
Memphis, TN – On November 8, 2017, a federal grand jury returned a 7-count indictment charging five defendants with conspiracy to distribute large amounts of marijuana and money laundering. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
This investigation was conducted in conjunction with prosecutors in Memphis and elsewhere as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
Between 2014 and May 3, 2017, the defendants engaged in a multi-state marijuana and money laundering conspiracy. Utilizing the U.S. Mail, the defendants would send and receive packages of marijuana for redistribution in multiple locations, including Memphis and Chattanooga, Tennessee and San Francisco, California. In furtherance of this conspiracy, the defendants conducted a large number of financial transactions.
"This indictment reflects the ongoing priority of the U.S. Attorney’s Office to use all available law enforcement and prosecutorial resources to disrupt and dismantle drug trafficking organizations and conspiracies that distribute illegal narcotics into and through the Western District of Tennessee. Our investigations and prosecutions through the OCDETF Program will be aggressive and far reaching, and will include criminal forfeiture of the ill-gotten financial proceeds from such illegal activities," said U.S. Attorney D. Michael Dunavant.
The five defendants indicted on federal charges include:
Jijad Hijazi, 33, San Francisco, CA
Christopher Heffernan, 32, San Francisco, CA
Nasseam Elkarra, 36, San Francisco, CA
Kenric West, 46, Memphis, TN
Patrick O’Neal, 28, Memphis, TNCount 1 charges Jijad Hijazi, Christopher Heffernan, Nasseam Elkarra, Kenric West and Patrick O’Neal with conspiracy to distribute, and to possess with intent to distribute, in excess of 100 kilograms of marijuana.
Count 2 charges Kenric West with possession with intent to distribute 444.2 grams of marijuana.
Count 3 charges Kenric West with possession with intent to distribute 23.4 grams or more of cocaine.
Count 4 charges Kenric West with being a convicted felon in possession of a firearm.
Count 5 charges Jijad Hijazi and Kenric West with possession with intent to distribute marijuana in excess of 2,690 grams.
Count 6 charges Jijad Hijazi and Kenric West with possession with intent to distribute 1,523 grams of marijuana.
Count 7 charges Jijad Hijazi and Kenric West with conspiring to engage in financial transactions with intent to promote the carrying on of specified unlawful activity, that is conspiracy to commit drug trafficking.
The United States also seeks criminal forfeiture of $3,078,000 in U.S. currency, both jointly and separately from Jijad Hijazi, Christopher Heffernan, Nasseam Elkarra, Kenric West and Patrick O’Neal.
If convicted, the defendants face maximum sentences of up to 40 years imprisonment for the drug conspiracy charge, 5 years imprisonment for each of the marijuana possession charges, 10 years imprisonment for felon in possession of firearm charge, and 2o years imprisonment for the money laundering conspiracy charge.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case was investigated by the Drug Enforcement Administration and the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Cotten is prosecuting this case on the government’s behalf.
Five Men Indicted for Hobbs Act Robberies of Seven Businesses in West TennesseeRead the Press Release
Jackson, TN – On November 20, 2017, a federal grand jury returned a 14-count indictment charging five defendants with federal Hobbs Act Robbery in West Tennessee. D. Michael Dunavant,U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, from July 1, 2016 through October 31, 2016, Jenial Edwards, Scotty Edwards, Eddie Matthews, Zarius Norment and Johnny Cross were on a robbery crime spree. Separately and together, the defendants robbed seven different businesses in Bolivar, Whiteville, and Jackson, Tennessee. Some of the defendants possessed firearms in each of these robberies. The 14-count indictment charges each defendant with robbery affecting interstate commerce and carrying and/or brandishing firearms during the commission of the robberies. Jenial Edwards is also charged with being a felon in possession of a firearm.
The defendants are:
Jenial Edwards, 25, Bolivar, TN
Scotty Edwards, 25, Bolivar, TN
Eddie Matthews, 26, Bolivar, TN
Zarius Norment, 21, Whiteville, TN
Johnny Cross, 54, Bolivar, TNIf convicted, each defendant faces up to 20 years imprisonment for each of the robberies and a $250,000 fine. In addition, the defendants face a consecutive 7-year sentence for brandishing a firearm during the robberies. Jenial Edwards has an additional penalty of not more than 10 years for being a convicted felon in possession of a firearm. The United States also seeks criminal forfeiture of property involved in the crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Hardeman County Sheriff’s Office; and Bolivar, Whiteville and Jackson Police Departments.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Assistant U.S. Attorney Victor L. Ivy is prosecuting this case on the government’s behalf.
Perry County Man Pleads Guilty to Filing False Federal Income Tax ReturnRead the Press Release
Jackson, TN – D. Michael Dunavant, United States Attorney for the Western District of Tennessee and Tracey D. Montano, Special Agent in Charge, IRS-Criminal Investigation announced today that Joel Anthony Bunch, of Clifton, Tennessee has pleaded guilty to one count of Filing a False Federal Income Tax Return.
On February 21, 2017, Bunch was charged with Filing False Federal Income Tax Returns in an 8-count indictment handed down by a federal grand jury in Jackson.
According to the indictment, Bunch filed false U.S. Corporation Income Tax Returns for the tax years 2010, 2011, 2012, and 2013, by underreporting the corporation’s gross receipts. Bunch also filed false U.S. Individual Income Tax Returns for tax years 2010, 2011, 2012, and 2013, by underreporting gross receipts on his Schedule C, Profit or Loss from Business.
During today’s plea hearing, Bunch pled guilty to Count 8 of the indictment charging him with 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 $27,317, resulting in an additional tax due and owing of $8,361.
The Internal Revenue Service – Criminal Division investigated this case. Assistant U.S. Attorney Matthew J. Wilson is prosecuting the case on the government’s behalf.
Man Convicted for Using Stolen Identities to Attempt to Defraud Various Financial Institutions of More Than $1.7 Million DollarsRead the Press Release
Memphis, TN – After a six-day jury trial in the U.S. District Court, a Memphis man has been found guilty as charged of using stolen identities to defraud over 100 individual victims and various financial institutions of more than $1.7 million dollars. In addition, he was found guilty on two counts of tampering with government witnesses. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the convictions today.
According to the indictment, Jeremy Jones, 39, of Memphis, executed a scheme to steal the identities of personal acquaintances, car dealers and over 145 Memphis Neurology patients throughout 2011, 2012 and 2015. Jones used this identifying information to apply for loans and credit cards and open bank accounts in the individuals’ names without their knowledge. A co-conspirator, who was employed at Memphis Neurology, removed patient information from the company’s database and provided it to Jones upon his request. Jones agreed to compensate the co-conspirator for providing him with this information.
Jones sent and received loan applications, checks and other financial information from numerous lenders throughout the United States via the internet and mail carriers. The potential loss is $1.7 million.
On February 16, 2016, Jones was originally indicted on individual counts of conspiracy to commit identity theft and mail fraud, and separate counts of identity theft, mail fraud, and aggravated identity theft. On October 3, 2017, a superseding indictment added two additional counts of obstruction of justice for tampering with two government witnesses.
The sentencing hearing is set for March 8, 2018. The maximum prison sentence for conspiracy is 5 years; the maximum prison sentence for identity theft is 5 years; and the maximum prison sentence for mail fraud is 20 years. The maximum prison sentence for aggravated identity theft is a mandatory penalty of 2 years imprisonment consecutive to any other sentence imposed. For the obstruction of justice charge, the maximum sentence is 20 years.
"Identity theft and financial fraud of this magnitude and scale by the defendant has victimized hundreds of people by compromising their personal and private information for his own selfish and unjust enrichment, and I am pleased that we have been able to hold the defendant accountable and achieve justice for the victims. I want to commend the good investigative work done in this case by the U.S. Postal Inspection Service and U.S. Secret Service, and I want to recognize the outstanding prosecutorial efforts of Assistant U.S. Attorneys Damon K. Griffin and Murre Martindale in presenting this complex case to the jury on behalf of the government," said U.S. Attorney D. Michael Dunavant.
Honduran Man Found in Jackson, Tennessee, Indicted for Illegal Reentry and Being an Alien in Possession of 16 FirearmsRead the Press Release
Jackson, TN – On November 20, 2017, a federal grand jury charged a Honduran man found in possession of multiple firearms in Jackson, Tennessee, in a 33-count indictment. D. Michael Dunavant,U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, on November 9, 2017, Melvin Melendez-Garcia, a/k/a/ "Joker," a/k/a Melvin Melendez, a/k/a Melvin Arteaga-Rivas, 32, reentered the United States after being deported and removed from the United States on multiple prior occasions, and did not have consent of the Attorney General or the Secretary of Homeland Security to reapply for admission into the country.
Melendez is also charged with 16 counts of being an alien in possession of several firearms, including shotguns, pistols, revolvers, and semi-automatic high capacity rifles. Melendez faces 16 additional counts of being an unlawful user of a controlled substance in possession of the same firearms.
If convicted, the defendant will face up to 10 years in federal prison for illegal reentry. Melendez will also face up to 10 years in federal prison for each of the individual firearm counts.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Homeland Security Investigations; Madison County Sherriff’s Office and Jackson Police Department Metro Narcotics Unit; and the U.S. Attorney’s Office.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Assistant U.S. Attorney Taylor Eskridge is prosecuting this case on the government’s behalf.
Two Defendants Indicted for Multiple Bank RobberiesRead the Press Release
Jackson, TN – On November 20, 2017, a federal grand jury charged two defendants for allegedly robbing two banks in two separate counties in West Tennessee. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the indictment today.
According to the indictment, on August 25, 2017, Gene Allen Howell, 36, of Selmer, Tennessee and Janet Nicole Thompson, 36, of Enville, Tennessee, robbed the Home Banking Company in Finger, Tennessee. Several months later, on October 14, 2017, the defendants robbed the Peoples Bank in Reagan, Tennessee. During each robbery, Howell brandished a weapon.
Howell and Thompson are charged with two counts of bank robbery. Howell is also charged with possessing and discharging a firearm during crime of violence. If convicted, each defendant will face up to 20 years in federal prison for each of the individual robbery counts. Howell will face up to life in federal prison for discharging firearms during the robberies. The defendants allegedly aided and abetted each other during the commission of the crime.
United States Attorney D. Michael Dunavant said: "Bank robbery committed with a firearm is an inherently violent offense, and threatens the very fabric of our financial institutions that provide commercial services to citizens and the community. These disturbing and brazen acts of violence will not be tolerated, and will be met with firm resolve, quick investigative action, and aggressive federal prosecution. By collaborating with federal, state and local partners, we will use every available resource to ensure the safety of our citizens and security of our banking institutions."
During the investigation, agents seized two pistols, including a .45 caliber. The ammunition in the pistol was the same make and manufacture as casings found at the Reagan Bank.
The case was investigated by the FBI;Henderson County Sheriff’s Office; and the McNairy County Sheriff’s Office. Assistant U.S. Attorney Matthew Wilson is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Henry County Man Pleads Guilty to Possession and Receipt of Child PornographyRead the Press Release
Jackson, TN – A Henry County man has pleaded guilty to possession and receipt of child pornography. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the guilty plea today.
In February 2017, law enforcement officers in Henry County, Tennessee, received a lead out of Belvidere, Illinois, regarding Russell Jann, 44, of Cottage Grove, Tennessee. Based on that lead and the ensuing investigation, agents learned that Jann had been engaging in sexually explicit online chats and conversations via text messages with at least four minor victims ranging in age from 15 to 17 years old.
Jann exchanged messages with the victims containing pictures of his genitalia and videos of himself masturbating and received similar sexually explicit images and/or videos of at least 3 of the 4 minor victims. Agents also recovered a laptop computer and external hard drive from Jann’s home that contained thousands of images and videos of child pornography depicting children as young as infants. Jann is facing a mandatory minimum five years’ imprisonment.
This case 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 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 www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources."
This case was investigated by the FBI; Belvidere (Illinois) Police Department; and Henry County Sheriff’s Office. Assistant U.S. Attorney Kasey Weiland is prosecuting the case on the government’s behalf.
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10 Defendants Indicted on Federal Drug Trafficking ChargesRead the Press Release
Memphis, TN – Ten residents of the greater Memphis area have been indicted for conspiring to distribute large quantities of methamphetamine, cocaine, and marijuana throughoutWest Tennessee. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
On November 2, 2017, a federal grand jury returned a superseding indictment, which remained sealed until the defendants’ arrest. On Tuesday, November 7, 2017, federal, state and local law enforcement agencies participated in an early morning round up. This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
The indictments follow a six-month investigation involving agents of the FBI as well as other federal and state agencies in this joint operation. The defendants have been charged with conspiracy to distribute and possess with the intent to distribute more than 500 grams of methamphetamine, more than 5 kilograms of cocaine, and more than 100 kilograms of marijuana. The defendants are:
• Daniel Castelo, 42, Memphis, Tennessee
• Lorenzo Castelo, 39, Memphis, Tennessee
• Carlos Crump, 33, Memphis, Tennessee
• Julio Ceasar Garcia, 37, Memphis, Tennessee
• Josue Gonzalez, 28, Memphis, Tennessee
• Jesus Gutierrez, 40, Memphis, Tennessee
• Albert Hall, 33, Memphis, Tennessee
• Roy Lee Johnson, 59, West Memphis, Arkansas
• Roy Lee Johnson Jr., 27,West Memphis, Arkansas
• Victor Torrez, 19, Memphis, TennesseeU.S. Attorney D. Michael Dunavant said, "This indictment and takedown represents another great example of law enforcement working together to remove criminals from the Western District of Tennessee. We will not tolerate illegal drug activity disrupting our daily lives. Each day, we are driven with all due haste to go after those who do not abide by our laws of justice and who distribute poison in our community. We are coming after you. Making our communities safer for our citizens is our priority and mission."
Count 1 charges Lorenzo Castelo, Daniel Castelo, Carlos Crump, Julio Ceasar Garcia, Jesus Gutierrez, Albert Hall, Roy Lee Johnson, Roy Lee Johnson Jr., and Victor Torrez with conspiracy to possess with intent to distribute 5 kilograms of Cocaine.
Count 2, 3, and 4 charges Lorenzo Castelo with possession with intent to distribute and distribute in excess of 50 grams of Methamphetamine.
Count 5 charges Lorenzo Castelo, Daniel Castelo, Julio Ceasar Garcia, Josue Gonzalez, and Victor Torrez, with possession with intent to distribute and to distribute in excess of 500 grams of Methamphetamine.
Count 6 charges Lorenzo Castelo, Daniel Castelo, Carlos Crump, Julio Ceasar Garcia, Albert Hall, Roy Lee Johnson and Victor Torrez with possession with intent to distribute and to distribute in excess of 100 kilograms of Marijuana.
Count 7 charges Lorenzo Castelo, Daniel Castelo and Victor Torrez with possession with intent to distribute in excess of 500 grams of Methamphetamine.
The United States also seeks criminal forfeiture of $1,000,000 in U.S. currency, both jointly and severally from Lorenzo Castelo, Daniel Castelo, Victor Torrez, Julio Ceasar Garcia, Carlos Crump, Albert Hall, Roy Lee Johnson, Roy Lee Johnson Jr., Jesus Gutierrez and Josue Gonzalez.
"Illegal drugs are related violence are serious threats to our communities and these arrests demonstrate the importance of cooperation between state, local and federal law enforcement in the Investigation and prosecution of drug trafficking organizations," said Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the FBI. "The FBI will continue to combat these issues to protect our community from the lethal combination of narcotics and firearms, and to disrupt and dismantle the drug networks that threaten our neighborhoods."
During this investigation, agents seized approximately $345,000 in U.S. currency and 16 pounds of meth. If convicted, the defendants face mandatory minimum sentences of 10 years imprisonment up to life.
The FBI and Homeland Security Investigations ("ICE") investigated this case, along with the FBI Safe Streets Task Force, which includes agents from the Memphis Police Department, Shelby County Sheriff’s Office, Bartlett Police Department, Germantown Police Department, and Desoto County, Mississippi Sheriff’s Department, who also participated in this investigation. Assistant U.S. Attorney Jerry Kitchen is prosecuting the case on the government’s behalf.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Drug Enforcement Administration Collects Record Number of Unused Pills During Its 14th Prescription Drug Take Back DayRead the Press Release
Memphis, TN –U.S. Attorney D. Michael Dunavant, joined the Drug Enforcement Administration (DEA) on October 28, 2017 for its 14th National Prescription Drug Take Back Day. The biannual event was held from 10 a.m. to 2 p.m., at thousands of collection sites around the country, including at Kroger, 7615 Highway 70 Bartlett, TN. That one-day event made it convenient for the public to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs. Authorities collected 226 lbs. of prescription drugs at the Kroger location.
Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its partners a record-setting 912,305 pounds – 456 tons – of potentially dangerous expired, unused, and unwanted prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event.
"Our office was pleased to partner with DEA for this important cause. The President recently announced mobilizing his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency. With the opioid epidemic at an all-time high, we must take advantage of every opportunity to rid our communities of drugs that destroy the lives of our fellow citizens," said D. Michael Dunavant, U.S. Attorney, Western District of Tennessee.
Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
DEA’s next Prescription Drug Take Back Day is April 28, 2018.
For more information or to locate a collection site near you, go to the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov where you can search by zip code, city or state.
Seven Members of Drug Trafficking Organization Plead Guilty to Distributing over 100,000 Oxycodone PillsRead the Press Release
Memphis, TN – Seven members of a drug trafficking organization have pleaded guilty to distributing Oxycodone. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the guilty pleas today.
According to the indictment, on or about 2012 through March 2, 2017, Courtney M. Jones’ drug trafficking organization distributed a continuous supply of Oxycodone pills to customers of his organization. Jones and other co-conspirators organized and managed the delivery of various quantities of Oxycodone from Las Vegas, Nevada, into the Western District of Tennessee. The other defendants include Loren N. Bryant; Toresha D. Douglas; Charlotte M. Goldsmith; Magon O. Hall; Gabriel Rounds and Demarious E. Tuggle.
On May 9, 2013, Las Vegas Postal Inspectors began an investigation into packages suspected of containing Oxycodone pills. The U.S. Postal Inspection Service (USPIS) identified phone numbers, surveillance images, vehicle registrations and other information connecting Gabriel Rounds and Magon Hall sending packages to various addresses and recipients through Express Mail envelopes.
On March 2, 2017, an undercover Postal Inspector delivered an Express Mail package to Jones’ apartment. The surveillance team observed Jones meet the mail carrier and accept the package. A search warrant was executed, and approximately 700 oxycodone pills and $53,325 in cash was recovered, as well as a fully loaded Glock 9mm pistol, 6.1 grams of marijuana found inside of a wooden box and 3.3 grams of marijuana inside a plastic bag in a kitchen cabinet. Jones was a convicted felon at the time of the incident.
The investigation further revealed that the defendants would deposit or withdraw cash from Wells Fargo Bank, Bank of America, In Touch Credit Union and MoneyGram as payment for the shipments.
The defendants are scheduled to be sentenced by U.S. District Judge Sheryl H. Lipman as follows: Courtney M. Jones on January 12, 2018; Toresha D. Douglas on January 18, 2018; Megan O. Hall on January 19, 2018; Gabriel Rounds and Demarious E. Tuggle on January 25, 2018; Loren N. Bryant and Charlotte M. Goldsmith on February 2, 2018. The maximum penalty is not more than 20 years imprisonment and $500,000 fine and 5 years supervised release to begin after incarceration.
The United States Postal Inspection Service and Shelby County Sheriff’s Office investigated the case. Assistant U.S. Attorneys Jerry Kitchen and Michelle Parks are prosecuting the case on the government’s behalf.
Idaho Fugitive Found in Hardeman County Sentenced to 240 months on Machine Gun and Drug ChargesRead the Press Release
Jackson, TN – Henry McGuire was sentenced to a total of 240 months in federal prison for being a felon in possession of a machine gun and seven other firearms in Tennessee; and for possession of methamphetamine with intent to distribute and possessing a firearm during a drug trafficking offense in Idaho. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on February 6, 2016, members of the Boise Police Department in Idaho encountered Henry McGuire after he committed a traffic violation. During the stop, a K9 officer alerted to the presence of narcotics inside the vehicle and officers observed a semi-automatic pistol, tucked between the driver seat and center console. Upon searching the car, officers located a plastic bin containing marijuana, a digital scale, clear plastic bags, methamphetamine, heroin, bullets and several large wads of cash. Upon search of McGuire’s person, officers located a glass pipe containing white residue, methamphetamine, heroin, and over $1,500 in cash. McGuire admitting that he sold approximately one-half pound of methamphetamine every couple of days during the preceding year. The Boise Police Department seized approximately $16,851 cash and a Chevrolet Impala. McGuire was arrested and released on bail in Idaho and was later indicted federally in the District of Idaho.
On April 5, 2016, the United States Marshals Service was notified that Henry McGuire was an Alcohol, Tobacco and Firearms (AFT) fugitive from Idaho. McGuire was located by the U.S. Marshals and deputies with the Hardeman County Sheriff’s Office on Covington Loop in Saulsberry, TN. When officers arrived, they observed two vehicles and a "fifth wheel" travel trailer. After checking the travel trailer for safety, officers observed a rifle laying on the couch. Officers recovered over $5,000 cash from McGuire and obtained a search warrant to search the rest of the property.
After executing the search warrant, agents found eight firearms including:
• a STEN, 9mm, fully loaded automatic machine gun,
• a Remington 28-shotgun,
• a Browning 12 gauge shotgun,
• Ruger rifle,
• a Bersa Mini Firestorm 9mm pistol,
• a Norinco .223 caliber rifle,
• a Ruger .22 caliber pistol, and
• a Ruger .22 caliber rifle.
U.S. Attorney D. Michael Dunavant said, "This case is a great example of law enforcement partners collaborating throughout the country to bring to justice those individuals who break our gun and drug laws. You will be caught. We are unrelenting in our pursuit of justice."
Further investigation revealed three of the firearms, including the Bersa pistol, Ruger pistol, and Ruger rifle, had previously been reported as stolen. McGuire had previous felony convictions for Eluding Police Officers out of Boise, Idaho.
On November 1, 2017, the Honorable J. Daniel Breen, U.S. District Court Judge, sentenced McGuire to 240 months incarceration and 8 years supervised release to begin after his incarceration to resolve both the Idaho and Tennessee cases.
McGuire received 120 months for possession of the machine gun and other firearms in Tennessee, to be run concurrent with a 180-month sentence for possession of methamphetamine in Idaho. McGuire was also sentenced to 5 years consecutively to the methamphetamine charge for a total effective sentence of 240 months confinement.
Steve Gerido, ATF Special Agent in Charge commented, "The proactive relationships of law enforcement nationwide proved once again that individuals focusing on illegal firearms and narcotics activities will be brought to justice."
The Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise (Idaho) Police Department; Hardeman County Sheriff’s Office; and the U.S. Attorney’s Office, who have all worked jointly to address gun-related crimes through aggressive investigation and prosecution, investigated these cases.
Assistant U.S. Attorneys Taylor Eskridge and Bryce B. Ellsworth prosecuted these cases on the government’s behalf.
Dunavant Receives Tennessee District Attorney’s Highest HonorRead the Press Release
KNOXVILLE, Tenn. (Nov. 2, 2017) – The state’s 31 District Attorneys have recognized U.S. Attorney Mike Dunavant, formerly the District Attorney General for the 25th District, with the McCutchen Award, which was established in 2000 in memory of Tennessee District Attorneys General Conference Director Pat McCutchen.
“Director McCutchen’s goal was for the Conference to be the voice of criminal justice,” said Jerry Estes, Executive Director of the Tennessee District Attorneys General Conference. “Like Pat, Mike has been a key player in the Conference’s work since being elected in 2006, serving in multiple leadership roles. His commitment to justice led to his being appointed a U.S. Attorney. He is more than deserving of this award.”
This award is given annually to a prosecutor who shows an extraordinary embrace of McCutchen’s vision of the Conference as Tennessee’s definitive voice for criminal justice.
“I am honored that my fellow prosecutors would consider me to be in the same category as Pat McCutchen, an exemplary leader,” Dunavant said. “During my time as a District Attorney, I was proud to serve in multiple leadership roles with the Conference. The Conference is the voice of criminal justice, and that in many ways is thanks to Pat McCutchen’s work.”
Dunavant has served in several Conference leadership positions, including President, Vice President and Secretary, and has chaired the Justice and Professionalism Committee since 2014, and previously served on the Legislative and Child Support committees.
Dunavant was first elected as a District Attorney for the 25th Judicial District in 2006, and was re-elected in 2014. He was nominated in June 2017 by President Donald J. Trump to serve as the U.S. District Attorney for the Western District. The U.S. Senate confirmed his nomination in September. Dunavant received his B.A. degree in political science from the University of Tennessee–Knoxville in 1992 and his law degree from the University of Mississippi in 1995. He and his wife, Marianne, live in Atoka with their two sons, Hutch and Trey.
About TNDAGC
The Tennessee District Attorneys General Conference was created by the Tennessee General Assembly in 1961 to provide for a more prompt and efficient administration of justice in the courts of this state. It is composed of the District Attorneys General from the state’s 31 judicial districts. The District Attorneys General are elected for a term of eight years and are responsible for the prosecution of criminal cases on behalf of the state. Visit www.tndagc.org for more information or to contact your local District Attorney General.
Convicted Felon Guilty of Possession of Firearms and Drug TraffickingRead the Press Release
Memphis, TN – A federal jury has found a Bartlett man guilty for possession of a controlled substance with intent to distribute, possession of firearms in furtherance of drug trafficking, as well as being a felon in possession of firearms. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the guilty verdicts today.
According to information presented in court, throughout August 2016, Detectives with the Bartlett Police Department received information that David High, 31, was selling marijuana at a residence in Memphis, TN. Officers set up surveillance at the residence and saw High smoking marijuana on the front steps of his house. On August 19, 2016, law enforcement witnessed him walk outside with a backpack and get into a truck. They followed him and stopped him for speeding in a school zone.
As officers approached the defendant, he attempted to put something under the passenger side seat. Officers noticed the strong smell of marijuana emanating from the car and noticed the defendant visibly shaken. High admitted to speeding in the school zone. The officers searched the car based on the marijuana smell and found a dark colored backpack under the passenger side seat containing a clear plastic bag with 125 grams of marijuana, a black plastic bag with 125.6 grams of marijuana and a black bag containing 119.3 grams of THC wax. The marijuana field-tested positive.
Based on this information, the officers obtained a search warrant to search for drugs and drug proceeds at the residence. The officers executed the search warrant the same day and discovered a Smith & Wesson .38-caliber revolver loaded with five rounds of ammunition and a Mossberg 12 gauge shotgun. The shotgun has a pistol stock and was located between a bedside table and the bed, allowing for easy access. The shotgun was also within arm’s length of a dresser, which contained the majority of the marijuana. High’s ID was found in the top of one of the dressers in the master bedroom. A box of 12 gauge shotgun shells was found in one of the nightstands in the bedroom.
Throughout the residence was a total of 1265.6 grams of marijuana, 110.2 grams of marijuana wax and $2,990 in cash.
United States Attorney D. Michael Dunavant said, "On July 24, 2017, our office along with other local partners held the ‘Fed Up’ press conference to inform the citizenry that we are fed up with this type of lawlessness, drug trafficking, and gun violence throughout our communities. This case serves as a reminder that if you choose to illegally possess a firearm, you could be facing up to life in federal prison. Gun Crime is Max Time."
Sentencing is scheduled for February 2, 2018, before U.S. District Judge Sheryl H. Lipman. High faces up to 15 years imprisonment.
This case was investigated by the Bartlett Police Department and Project Safe Neighborhoods. Assistant U.S. Attorney J. William Crow is prosecuting this case on the government’s behalf.
Arlington Man Sentenced for Soliciting Minor Child through Social MediaRead the Press Release
Memphis, TN – An Arlington man has been sentenced to federal prison for soliciting a minor child through social media. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, between June and September 2016, Matthew Marr used the internet to meet and seduce a fourteen-year old girl. Marr first met the child through a social media app. Although she told him that she was only fourteen, Marr quickly convinced her that he would be her boyfriend. Marr convinced the girl to take photographs of her genitals and send the pictures to him using another social media site. Ultimately, Marr met the girl in person and engaged in sexual intercourse.
This case 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 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.
On October 30, 2017, U.S. District Judge John T. Fowlkes Jr., sentenced Marr to 188 months imprisonment and 10 years supervised release following his incarceration.
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.
The Bartlett Police Department and FBI Memphis Child Exploitation Task Force investigated the case. Assistant U.S. Attorney Deb Ireland prosecuted the case on the government’s behalf.
Drug Enforcement Administration (DEA) Prepares for Prescription Drug Take Back DayRead the Press Release
Memphis, TN –U.S. Attorney, D. Michael Dunavant, Western District of Tennessee, will join the Drug Enforcement Administration on October 28, 2017 for its 14th National Prescription Drug Take Back Day. The biannual event will be held from 10 a.m. to 2 p.m., at thousands of collection sites around the country, including here at Kroger, 7615 Highway 70 Bartlett, TN. This one-day event will make it convenient for the public to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
Last April Americans turned in 450 tons (900,000 pounds) of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 13 previous Take Back events, DEA and its partners have taken in over 8.1 million pounds, more than 4,050 tons, of pills. The disposal service is free and anonymous, no questions asked.
"Our office is pleased to partner with DEA for this important cause. DEA is to be commended for its efforts to provide citizens across the country the opportunity to dispose of unused prescription painkillers. With the opioid epidemic at an all-time high, we must take advantage of every opportunity to rid our communities of drugs that destroy the lives of our fellow citizens," said D. Michael Dunavant, U.S. Attorney, Western District of Tennessee.
Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.
For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov where you can search by zip code, city or state.
Memphis Man Sentenced to 57 Months in Scheme to Defraud Financial InstitutionsRead the Press Release
Memphis, TN – A Memphis man has been sentenced to 57 months in federal prison for committing bank fraud against financial institutions in the Memphis area. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to the indictment, from August 2011 through February 2016, Talmadge Garner and other co-conspirators participated in a deceptive scheme to defraud Orion Federal Credit Union, SunTrust Bank and Regions Bank by opening new accounts and/or using their existing accounts to deposit fraudulent checks. Garner also stole the identities of individuals to pass fraudulent checks to the Banks.
Nearly 200 fraudulent checks totaling over $130,000 were deposited into accounts at the Banks. Immediately after deposits were made in the banks, withdrawals were made by Garner and others. Garner would give co-conspirators some of the proceeds withdrawn from the banks.
On October 25, 2017, U.S. District Judge Sheryl H. Lipman sentenced Garner to 57 months imprisonment and 3 years supervised release to begin after his incarceration.
The case was investigated by the United States Secret Service. Assistant U.S. Attorney Damon Keith Griffin prosecuted the case on the government’s behalf.
Memphis Man Sentenced to 18 Months in Federal Prison for Obstructing the IRSRead the Press Release
Memphis, TN – A Memphis man has been sentenced to 18 months in federal prison for obstructing the Internal Revenue Service ("IRS"). D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the sentence today.
According to documents and information provided to the court, Cedric Zimbalist Chism was the former owner and operator of a security guard service, Memphis Security of Tennessee, Inc. ("MSOFT"). MSOFT had contracts for services with various businesses throughout the Western District of Tennessee in Memphis. Chism attempted to impede and evade payment and reporting of employment taxes to the IRS from 1999 to 2011. Chism, personally and as owner and operator of MSOFT, owed $1,688,473.45 with a tax loss to the IRS of $854,144.39.
On October 20, 2017, U.S. District Judge John T. Fowlkes, Jr., sentenced Chism to 18 months imprisonment and 1 year supervised release to begin after his incarceration.
The case was investigated by the United States Internal Revenue Service. Assistant U.S. Attorney Damon Keith Griffin prosecuted this case on the government’s behalf.
Convicted Felon Pleads Guilty to Shooting and Carjacking a ManRead the Press Release
Memphis, TN – John Kenny, 26, pleaded guilty to federal charges of armed carjacking and being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the guilty plea today.
According to information presented in court, on August 20, 2016, the defendant brandished a Glock 9mm pistol and demanded a 2015 GMC Terrain from the victim as he was sitting inside the car outside of Bardog Tavern, 73 Monroe Avenue. The defendant then shot the victim in the arm and demanded the wallet. After stealing the wallet, along with the victim’s cell phone, the defendant carjacked the victim’s car and drove off. The victim was transported to the hospital and treated for his gunshot injury.
Shortly after the robbery, Memphis Police Department officers located the defendant along with the GMC Terrain, the victim’s cell phone, and bloody wallet in his possession. Law enforcement searched the GMC Terrain and recovered a shell casing.
The defendant was identified from a photographic lineup as the person who shot the victim, took the GMC Terrain, and wallet.
United States Attorney D. Michael Dunavant said, "On July 24, 2017, our office along with other local partners held the ‘Fed Up’ press conference to inform the citizenry that we are fed up with this type of violence throughout our communities. This case serves as a reminder that if you choose to illegally possess a firearm, you could be facing up to life in federal prison. Gun Crime is Max Time."
Sentencing is scheduled for January 26, 2018, before U.S. District Court Judge Sheryl H. Lipman. Kenny faces statutory penalties of not less than 10 years, up to life in federal prison, a period of supervised release and monetary penalties.
The case was investigated by the Project Safe Neighborhoods (PSN) Task Force, which includes the U.S. Attorney’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Memphis Police Department; and the Shelby County Sheriff’s Office, who have all joined together to address gun-related crimes through aggressive investigation and prosecution. Assistant U.S. Attorney Bayonle Osundare prosecuted this case on the government’s behalf.
Investiture Ceremony for D. Michael Dunavant as United States Attorney for the Western District of TennesseeRead the Press Release
MEDIA ADVISORY
WHAT: Investiture Ceremony for D. Michael Dunavant as United States Attorney for the Western District of Tennessee
DATE: Friday, October 20, 2017
TIME: 11:00 a.m.
WHERE: City Hall Council Chambers
125 North Main Street
Memphis, TN 38103
NOTE: All media members must present government-issued photo I.D. (such as driver’s license), as well as valid media credentials.
Media are requested to RSVP to [email protected].
Former Bookkeeper Indicted for Stealing Monies through Fraudulent Means and Impersonation of a Federal OfficerRead the Press Release
Jackson, TN – Krystle Sheals, 32, of Marion, Arkansas, has been indicted on federal charges of devising a scheme to defraud and obtain money and funds through false pretenses and the impersonation of a Special Agent with the Federal Bureau of Investigation. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the indictment today.
Sheals, a former bookkeeper with Nichols Fire and Security (NFS) in Memphis, Tennessee, is charged with using her access to her employer’s bank accounts to pay personal bills and expenses, including personal credit card payments, personal utility payments, car payments, school loan payments, and mortgage payments. While using NFS funds, Sheals is also charged with the purchase of an automobile, which she then gave to an individual in Henry County, Tennessee, and opening a retirement 401K account. The funds stolen amount to approximately $327,000.
Sheals is additionally charged with falsely assuming and pretending to be an officer and employee of the United States, namely a Special Agent of the Federal Bureau of Investigation (FBI). Sheals falsely stated to others that she was a federal agent; wore and possessed clothing, articles and insignia of the FBI; possessed and presented documents, business cards and identification purporting to be an FBI agent; and conducted interviews while falsely purporting to be an FBI employee.
A federal grand jury in Jackson, Tennessee returned an eleven-count indictment against Sheals on October 16, 2017, but the indictment remained under seal until Sheal’s initial court appearance. Agents with the Federal Bureau of Investigation arrested Sheals on October 17, 2017, in Shelby County, Tennessee.
If convicted, Sheals faces up the twenty years imprisonment on the wire fraud charges and up to three years imprisonment on the impersonation charges, in addition to up to three years supervised release and a $250,000 fine.
This case is being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew J. Wilson 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.
Memphis Man Found Guilty on Five-Count IndictmentRead the Press Release
Memphis, TN – A federal jury has found a Memphis man guilty of possession of cocaine with intent to distribute, using and carrying a firearm during a drug trafficking offense, two counts of being a convicted felon in possession of a firearm, and possessing a firearm with an obliterated serial number. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the verdict today.
According to documents and information presented in court, on June 16, 2015, detectives for the Memphis Police Department Organized Crime Unit (OCU) executed an undercover operation at 5280 Summer Avenue. An undercover officer had been in contact with defendant Nickey Ardd, 41, for over 6 months posing as a drug dealer. One of the undercover officer’s confidential informants explained that Ardd was dissatisfied with his current cocaine supplier and searching for a new one. After several failed attempts to set up buys, on June 12, 2015, Ardd contacted the undercover officer and ordered 9 ounces of powder cocaine at $1,100 an ounce. The buy was set for June 16, 2015.
During the "takedown" operation, Ardd was arrested. A fully loaded Glock 9mm pistol was found on Ardd’s person. A total of $9,811 was recovered, which represented the money brought to the buy by Ardd. The operation was captured on surveillance video.
Later that day, a search warrant was executed at Ardd’s home. OCU detectives recovered additional cocaine packaged for sale and a loaded Luger 9mm caliber pistol. The serial number on the Luger had been obliterated.
Sentencing is scheduled for February 8, 2018, before U.S. Senior District Court Judge Samuel H. Mays. Ardd faces a mandatory minimum sentence of five years and up to life imprisonment.
The case was investigated by Project Safe Neighborhoods, the Memphis Police Department and the U.S. Attorney’s Office, who all work jointly to address gun-related crimes through aggressive investigation and prosecution.
Assistant U.S. Attorneys Karen Hartridge and Mabayonle Osundare prosecuted this case on the government’s behalf.
Tennessee Dentist Pleads Guilty to Tax EvasionRead the Press Release
Memphis, TN – A Shelby County, Tennessee dentist pleaded guilty today to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee.
According to documents and information provided to the court, Andrea M. Henry, 44, owned The Henry Polk Dental Group D.P.C. and The Smile Spa, LLC, dental practices located in Cordova, Tennessee. Henry filed personal income tax returns for 2005, 2006, 2008 and 2010 to 2013, but did not pay $113,781 in income and self-employment taxes due to the Internal Revenue Service (IRS). Henry also failed to pay over the employment taxes withheld from her employees’ paychecks for numerous quarters between 2006 and 2015. The IRS assessed over $160,000 in trust fund recovery penalties against Henry, making her personally liable for the unpaid employment taxes.
Instead of paying the taxes owed, Henry spent hundreds of thousands of dollars on personal expenses, including private school tuition, expensive housing and luxury cars. After the IRS assessed penalties against her, Henry stopped using personal bank accounts and instead began using business accounts to pay for personal expenses. In early 2011, prior to her home being foreclosed on, Henry transferred $130,000 to a nominee buyer, entered a sham lease arrangement with the nominee to create a false explanation of the funds in the nominee’s bank account, and caused the nominee to purchase the home for her. Henry later used that same nominee and other nominees to purchase and lease exotic cars, including a Dodge Viper and a Porsche Panamera. Henry admitted to causing a tax loss of $528,882.07.
Sentencing is scheduled for January 12, 2018, before U.S. District Court Judge John T. Fowlkes Jr. Henry faces a statutory maximum sentence of five years in federal prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and United States Attorney D. Michael Dunavant, commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Damon Griffin, who are prosecuting the case.
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Tennessee Dentist Pleads Guilty to Tax EvasionRead the Press Release
A Shelby County, Tennessee, dentist pleaded guilty today to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Michael Dunavant for the Western District of Tennessee.
According to documents and information provided to the court, Andrea M. Henry, 44, owned The Henry Polk Dental Group D.P.C. and The Smile Spa LLC, dental practices located in Cordova, Tennessee. Henry filed personal income tax returns for 2005, 2006, 2008 and 2010 to 2013, but did not pay $113,781 in income and self-employment taxes due to the Internal Revenue Service (IRS). Henry also failed to pay over the employment taxes withheld from her employees’ paychecks for numerous quarters between 2006 and 2015. The IRS assessed over $160,000 in trust fund recovery penalties against Henry, making her personally liable for the unpaid employment taxes.
Instead of paying the taxes owed, Henry spent hundreds of thousands of dollars on personal expenses, including private school tuition, expensive housing and luxury cars. After the IRS assessed penalties against her, Henry stopped using personal bank accounts and instead began using business accounts to pay for personal expenses. In early 2011, prior to her home being foreclosed on, Henry transferred $130,000 to a nominee buyer, entered a sham lease arrangement with the nominee to create a false explanation as to the source of the funds in the nominee’s bank account, and caused the nominee to repurchase the home for her. Henry later used that same nominee and other nominees to purchase and lease exotic cars, including a Dodge Viper and a Porsche Panamera. Henry admitted to causing a tax loss of $528,882.07.
Sentencing is scheduled for Jan. 12, 2018 before U.S. District Court Judge John T. Fowlkes Jr. Henry faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Dunavant commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Damon Griffin, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Decatur CountyMan Sentenced to 17 Years ImprisonmentRead the Press Release
Jackson, TN – A local man has been sentenced to 17 years’ imprisonment for conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, the FBI and other federal, state and local agencies conducted a year-long investigation into Franklin Shane Rushing, 46 of Decaturville, TN, and other co-conspirators who were distributing actual methamphetamine (methamphetamine with 80% or higher purity) in the Western District of Tennessee. The FBI received information that Rushing was a major distributor of ICE in Decatur County, Tennessee.
On December 9, 2015, a source purchased one ounce of meth from Rushing for $1,100. The DEA lab confirmed the drug amount to be 29.8 grams of 98.7% pure meth. Later that same day, Rushing sold another 28.2 grams of 99.6% pure meth. In February 2016, Rushing purchased one pound of ICE for $13,000 from his supplier. Law enforcement recovered another 4.5 ounces of ICE sold by Rushing. In March 2016, a traffic stop was conducted before Rushing could meet with his supplier to make arrangements for more narcotics. Seized from Rushing at that time was $9,086, as well as a loaded .40 caliber pistol in a holster. Law enforcement conducted a search warrant on Rushing’s home the same day as the traffic stop. 48 additional firearms were confiscated, along with digital scales, baggies, a small amount of meth and a drug notebook. During a 4-month period, 2.5 kilos of ICE was attributed to Rushing through this investigation.
On October 5, 2017, U.S. District Judge J. Daniel Breen sentenced Rushing to 144 months’ imprisonment for the drug conspiracy. He will serve 60 months consecutively on the firearms offense and 5 years supervised release following his incarceration.
The case was investigated by the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Tennessee Bureau of Investigation; 24th Judicial Drug Task Force; Decatur County Sheriff’s Department; Henderson County Sheriff’s Department; Lexington Police Department and as part of the FBI Safe Streets Task Force; Dyersburg Police Department and Jackson Police Department.
Assistant U.S. Attorney Beth C. Boswell prosecuted this case on the government’s behalf.
Local Man Sentenced to 90 Months Imprisonment for Possession of Child PornographyRead the Press Release
Memphis, TN – A local man has been sentenced to 90 months in federal prison for possession of child pornography. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the sentence today.
In late 2014, the Department of Homeland Security’s cyber investigative unit was conducting an investigation into a photo-sharing website that had become a popular place for the exchange of child pornography. Law enforcement identified a user of the website who had logged in from an IP address assigned to Jeffrey William Massey, 27, of Cordova, TN. The user had posted albums on the website containing pornographic images of minors.
On December 4, 2014, agents executed a search warrant at Massey’s residence. Massey agreed to talk to agents and admitted to obtaining child pornography online and to posting on the website under investigation. He also used websites and his email account to chat with others about and exchange child pornography.
During the search, agents seized numerous electronic and digital media storage devices. Forensic examination revealed approximately 250 images and 16 videos constituting child pornography. Review of Massey’s email account revealed chats about trading pornographic images of adults and minors, and evidence that child pornography had been sent from his email account on at least one occasion. His email account also contained communications from the website under investigation.
On October 5, 2017, the Honorable John T. Fowlkes Jr., sentenced Massey to 90 months’ imprisonment and 5 years’ supervised release to begin after his incarceration. He was also ordered to pay $13,000 in restitution.
This case 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 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 www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc/resources and click on the tab "resources."
Assistant U.S. Attorney Kasey A. Weiland prosecuted this case on the government’s behalf.
Attorney General Jeff Sessions Announces Reinvigoration of Project Safe Neighborhoods and other Actions to Reduce Rising Tide of Violent CrimeRead the Press Release
Memphis, TN - Today, Attorney General Jeff Sessions announced several Department of Justice (DOJ) actions to reduce the rising tide of violent crime in America. To help combat the rise in violent crime, the DOJ is reinvigorating Project Safe Neighborhoods (PSN), a program first started in 2001 that successfully reduced violent crime.
In announcing this recommitment, the Attorney General directed that United States Attorneys implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched. The violent crime reduction program includes an emphasis on enhancing partnerships with federal, state and local law enforcement to reduce gun violence.
The PSN program uses the full range of data and technologies to identify the most violent locations in the district and the individuals who drive the violence in our cities. PSN partners then use all potential investigative tools and resources to develop and bring cases against those who commit violent crimes. Ultimately, the coordinate effort ensures that the most violent offenders in our district are prosecuted in the legal venue that provides the most certain and appropriate penalty.
The Attorney General said: "Taking what we have learned since the program began, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnerships with local communities. With these changes, I believe this program will be more effective than ever and help us fulfill our mission to make America safer."
U.S. Attorney Mike Dunavant said "This office remains committed to implementing policies to enhance Project Safe Neighborhoods framework. Since PSN’s inception, the program has been instrumental in reducing violent crime throughout the Western District of Tennessee. We look forward to continuing this important work with local, state and federal law enforcement partners to proactively target criminal organizations and aggressively remove violent offenders from the streets."
The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:
Additional Assistant United States Attorney Positions to Focus on Violent Crime – the Department is allocating 40 prosecutors to approximately 20 United States Attorney’s Offices to focus on violent crime reduction.
More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local and tribal law enforcement agencies.
Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative – The National Gang Strategic Initiative promotes creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions. Under this initiative, OCDETF provides "seed money" to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.
Critical Training and Technical Assistance to State and Local Partners – The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victim’s groups, and others. To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a "hot line" to connect people to these resources.
Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts. These FY 2017 grants were awarded to Phoenix, Arizona and Kansas City, Missouri.
Expand ATF’s NIBIN Urgent Trace Program– The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year. Through this program, any firearm submitted for tracing that is associated with a NIBIN "hit" (which means it can be linked to a shooting incident) will be designated an "urgent" trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.
Gangster Disciple Sentenced to 12 ½ Years for Selling Crack CocaineRead the Press Release
Jackson, TN – A Jackson man has been sentenced to 151 months in federal prison for distributing and possessing with intent to distribute crack cocaine. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, in January 2016, the Jackson Police Department Special Operations Division (Jackson Madison County Metro Narcotics and JPD Gang Enforcement Unit) and the Tennessee Bureau of Investigation, initiated an undercover investigation of 34-year-old Terrence Whiteside. The defendant, whose nickname is "Trouble," was a known member of the Gangster Disciples street gang.
Between January 2016 and February 2016, law enforcement did three controlled buys of cocaine base (crack) from Whiteside. They purchased a total of 29.45 grams of crack cocaine. On May 11, 2016, a search warrant was executed at a residence in Jackson, Tennessee. Officers also had an active arrest warrant for Whiteside at the time for the prior narcotic purchases. At the home, they found 6.9 grams of crack and 52.9 grams of marijuana. They also located Gangster Disciple documentation, including the gang’s by-laws. Officers seized four vehicles, three televisions, digital scales, 11 cell phones and $963 in cash. Whiteside was on parole for two prior state felony narcotic convictions at the time he was selling the crack and at the time of the search warrant.
While imposing the 151-month sentence, U.S. District Judge J. Daniel Breen also ordered Whiteside to serve a 3-year term of supervised release following his release from prison.
The case was investigated by Jackson Madison County Metro Narcotics Unit, Jackson Police Department Gang Enforcement Unit, and the Tennessee Bureau of Investigation.
Assistant U.S. Attorney Beth C. Boswell prosecuted this case on the government’s behalf.
D. Michael Dunavant Sworn in as United States AttorneyRead the Press Release
D. Michael Dunavant was sworn in September 21, 2017, as the United States Attorney for the Western District of Tennessee. In a brief ceremony, Chief U.S. District Judge S. Thomas Anderson administered the oath of office in Jackson, Tennessee, making Dunavant the 50th person to serve as the chief federal prosecutor for the Western District.
Dunavant was nominated by President Donald Trump on June 12, 2017 and he was confirmed by the United States Senate on September 14, 2017.
"I am extremely humbled to be afforded the opportunity to serve the citizens of the Western District of Tennessee as their top federal-law enforcement officer. This responsibility will not be taken lightly. I, along with the dedicated professionals in the U.S. Attorney’s Office are committed to ensuring a safer community for our citizens in this 22-county district. I want to thank President Trump for his nomination."
Prior to his appointment as U.S. Attorney, Dunavant served as District Attorney General, 25th Judicial District of Tennessee. For eleven years prior to that, he was a partner in the law firm of Carney, Wilder and Dunavant, in Ripley, Tennessee.
Armed Robber Sentenced to 120 Months in Federal Prison for Illegal Gun PossessionRead the Press Release
Memphis, TN – A Memphis man has been sentenced for illegal gun possession related to an armed robbery that he committed at a gas station convenience store. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on the evening of October 3, 2016, Gregory Craft, 35, brandished a firearm and demanded money from a customer of the Valero convenience store located at 4027 Jackson Avenue. After taking the victim’s money, the defendant left the store and fired the weapon into the air. Craft had previously been convicted of several state charges, including felony assault with a deadly weapon, unlawful possession of a weapon, aggravated assault and domestic assault.
An indictment returned on January 26, 2017, by a federal grand jury charged Craft with being a convicted felon in possession of a firearm. Following a three-day trial, a jury unanimously returned a guilty verdict on June 7, 2017. In imposing the 120-month sentence today, U.S. District Judge Samuel H. Mays also ordered Craft to serve a 3-year term of supervised release following his release from prison.
The case was investigated by the Project Safe Neighborhoods Task Force, and officers and agents of the Shelby County Sheriff’s Office, Memphis Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorneys Lauren J. Delery and Jerry R. Kitchen prosecuted this case on the government’s behalf.
Memphis Man with Multiple Prior Felonies Convicted of Possession with Intent to Manufacture and Distribute NarcoticsRead the Press Release
Memphis, TN – A federal jury has found a Memphis man guilty of trafficking narcotics, possession with intent to distribute and manufacture controlled substances and being a felon in possession of a firearm. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the conviction today.
According to information presented in court, in March 2015, Duane Anthony Rouch, 52, purchased narcotics from underground websites designed to enable users across the world to buy and sell illegal drugs and other illicit goods and services anonymously outside the reach of law enforcement. To purchase narcotics on the "Dark Web" Rouch used "cryptocurrency," a form of payment used to conceal the identity of the buyer and seller using third-party vendors.
In March 2015, Rouch received a package from China containing a pill mold. From 2015 until December 2016, he received packages containing microcrystalline cellulose, a binding agent used to manufacture pharmaceutical pills. The defendant ordered online from China and Canada and had them shipped on ten occasions to a warehouse address in Memphis, Tennessee.
On September 16, 2016, Memphis Homeland Security ("ICE") Agents received information from U.S. Customs and Border Protection ("CBP") about a Canadian company shipping contraband to Memphis, Tennessee. This company transships contraband from China to the United States and supplies pill presses and chemicals for producing counterfeit pills or tablets. Furthermore, CBP Officers provided that at least ten shipments had been forwarded to the warehouse in Memphis, Tennessee.
In December 2016, Officers with the Shelby County Sheriff’s Office obtained a state search warrant for the warehouse to search for illicit narcotics. Law enforcement found an unloaded Lorcin 9 millimeter pistol, iPhone 6, pill press covered in residue, several mixing containers and utensils coated with white powder, drug paraphernalia – methamphetamine pipes, scales, presses, Xanax pills, lab mixing utensils, and materials used to manufacture methamphetamine – and more than 5 grams of methamphetamine in a mail parcel. The search of Rouch’s iPhone 6 revealed multiple photos/videos consistent with drug trafficking. At the time of the search, Rouch was on parole for multiple felony offenses.
On Tuesday, September 5, 2017, a federal jury convicted Rouch of one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute alprazolam, one count of conspiracy to commit the trafficking of narcotics and one count of felon in possession of a firearm. Rouch is scheduled for sentencing on December 7, 2017. He is subject to a mandatory minimum sentence of ten (10) years on the methamphetamine related offenses.
This case is being investigated by the Border Enforcement Security Team, which consists of federal agents from the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service and local law enforcement offices. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives assisted in the investigation.
Special Assistant U.S. Attorneys Sam Stringfellow and Bryce Phillips are prosecuting this case on the government’s behalf.
Bates Family Sentenced to 627 Months Imprisonment for Gold and Silver Ponzi SchemeRead the Press Release
Memphis, TN – Bates family members have been sentenced for their roles in a Ponzi scheme that defrauded victims of more than twenty-one million dollars. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentences today.
In May 2017, a federal jury found Larry Bates; his two sons, Chuck and Robert Bates; and Kinsey Bates, the wife of Robert Bates, guilty on all counts set forth in a federal indictment that charged mail and wire fraud and conspiracy. The charges rose out of the defendants running a decade long Ponzi scheme in the buying and selling of gold and silver coins. The proof at trial showed that the defendants were able to accomplish the fraud through First American Monetary Consultants, a Colorado corporation, which had offices in Memphis, Tennessee and Ft. Collins, Colorado. The proof showed that more than three hundred and sixty victims lost more than twenty-one million dollars. The scheme continued from as early as 2002 through October of 2013.
"Today, justice has finally been served to members of the Bates Family as a result of their decade long Ponzi scheme. Their corruption ploy -- which devastated and destroyed the lives of many hard-working individuals -- ended today. I hope this will serve as a clear --cut message that the United States Attorney’s Office and its law enforcement partners will work tirelessly to expose and bring to justice people responsible for such acts of greed and corruption." said Larry Laurenzi, Acting United States Attorney, Western District of Tennessee.
At trial, the proof showed that the defendants promoted their business through a variety of Christian television and radio programs, including the Jim Baker Show and Jewish Voice. Larry Bates, a self-proclaimed doctor in economics, held conferences across the United States on the upcoming economic collapse and the need to invest in precious metals. Between 2007 and 2013, customers gave more than eighty-seven million dollars
to First American Monetary Consultants for the purpose of buying precious metals. During this same period, the proof showed the defendants diverted customers’ monies that were to be used to purchase their precious metals to the defendants own use and benefit. By 2009, testimony at trial showed that the company had more than twenty-six million dollars in unfilled customer orders.
The proof showed that the defendants used the customers’ money for a variety of purposes other than purchase of customers’ metals. Larry Bates diverted more than four million dollars to the creation of International Radio Network, a Christian radio network. Other monies were diverted to trading in commodities and the building of a ten-thousand square foot house on three hundred acres in Middleton, Tennessee. Still other customers’ monies were used to fulfill prior orders, which had not been fulfilled.
At trial, the evidence showed that Larry, Chuck and Robert Bates were sales people in the Memphis office and were responsible for taking in victim’s monies. More than forty-five witnesses testified about losing money to Larry Bates and First American Monetary Consultants. The victims, who lived all across the United States, testified that their money was to be used to purchase precious metals that they never received. For example, Judith Ponder, from Kerrville, Texas testified that she and her mother gave Larry Bates more than $1.8 million dollars to purchase precious metals and received little in return. Barbara Santiago, from Washington State, testified that she and her paraplegic son met Larry Bates at one of his conferences in Washington State. Ms. Santiago testified that she later invested more than two hundred and sixty-six thousand dollars from her son’s insurance settlement that was to be used for her son’s care. Ms. Santiago, likewise, received little of her purchase. And, Charles Grimsley, a pastor for the Veteran’s Administration in Mesa, Colorado, testified that he and his wife gave FAMC more than two hundred thousand dollars of their retirement money and received nothing in return.
The proof showed that many of the victims attempted to take possession of their gold and silver coins, only to be put off by the defendants for a variety of reasons. The excuses for the delays included that the gold and silver coins were scarce, the coins were coming from Europe, and the U.S. mint was shut down. In October 2013, a receiver was appointed to take over the affairs of First American Monetary Consultants. The receiver found that the company had few assets and was unable to compensate the hundreds of victims who had given money to Larry Bates and First American Consultants.
On Tuesday, September 5, 2017, U.S. District Judge Sheryl Lipman sentenced both father, and son, Charles Larry Bates and Charles "Chuck" Bates. Charles Larry Bates was sentenced to 262 months’ imprisonment and 3 years’ supervised release to begin after incarceration. He was ordered to pay $21,210,345.39 in restitution and a mandatory special assessment of $4,600. Larry Bates was convicted on all 46 counts in the indictment.
Chuck Bates was sentenced to 151 months’ imprisonment and 3 years supervised release. He was ordered to pay $19,649,731.70 to victims, along with a special assessment of $1,700. Chuck Bates was found guilty of 16 counts of mail and wire fraud, and one count of conspiracy.
On Wednesday, September 6, 2017, U.S. District Judge Sheryl Lipman sentenced Robert Bates and his wife, Kinsey Brown Bates. Robert Bates was convicted on one count of conspiracy and eight counts of mail and wire fraud. Robert Bates received a sentence of 151 months which he will serve consecutively to another criminal sentence, as well as three years supervised release. He was ordered to pay $19,659,911 in restitution, along with a mandatory special assessment of $900. Kinsey Brown Bates was sentenced to 63 months’ imprisonment, $9,526,199.95 in restitution, 3 years supervised release and $300 mandatory special assessment.
Acting United States Attorney Lawrence J. Laurenzi and Assistant United States Attorney David Pritchard prosecuted the case. The United States Postal Service and the Federal Bureau of Investigation investigated the case.
Tennessee Woman Pleads Guilty to Aiding and Abetting an Attempt to Kidnap Judge and Sheriff in One-Count Criminal InformationRead the Press Release
Memphis, TN – Patricia Parsons, 49, of Brighton, Tennessee, pleaded guilty to a one-count criminal information charging her with aiding and abetting solicitation to commit kidnapping. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to the facts revealed during the plea hearing and alleged in the criminal information, from February 2017 through May 2017, Parsons conspired with Suzanne Holland, a self-appointed Chief Justice of the Universal Supreme Court of the Tsilhqot’in Nation in Canada, to kidnap a Tipton County judge and a Nebraska sheriff.
On January 10, 2017, Michael Parsons (the defendant’s husband) was scheduled to appear in state court in Tipton County, Tennessee on two counts of being a felon in possession of a firearm. Mr. Parsons did not show up for court, removed his ankle monitor and fled the jurisdiction. Two days later, he was located and arrested in a small airport in Arapahoe, Nebraska after flying himself there in a plane.
On February 16, 2017, FBI New Orleans received information that Suzanne Holland, self-appointed Chief Justice of the Universal Supreme Court of the Tsilhqot’in Nation in Canada, was attempting to hire a bounty hunter to kidnap Sheriff Kurt Kapperman of Furnas County, Nebraska and Judge Joseph Walker of Tipton County, Tennessee and to break Mr. Parsons out of jail. Ms. Holland contacted an FBI Confidential Source in New Orleans, Louisiana and solicited the source to execute what were purported to be duly-issued "arrest warrants" for the sheriff and judge issued by the Tsilhqot’in Nation. Holland emailed "arrest warrants" to the source along with an "order to release Michael Parsons from jail." Further investigation revealed that the Tsilhqot’in Nation was a Sovereign Citizen group located on an Indian reservation in British Columbia, Canada.
On February 17, 2017, Ms. Holland provided a telephone number for the source to facilitate further discussions. FBI Memphis determined this number to be that of Mr. Parsons’ wife, defendant Patricia Parsons.
Based on initial telephone conversations, Ms. Holland and the source agreed to draft a contract, signed by both parties, describing duties and payments. A final negotiated price of $250,000 was agreed upon for the arrest of the sheriff and judge and the facilitating release of Mike Parsons from jail. Mike Parsons was described as an Associate Justice of the Tshilhqot’in Nation.
On February 23, 2017, the source and Ms. Holland agreed on an initial payment of $5,000 to begin arranging all travel and other details related to the operation. Holland told the source that Patricia Parsons would have the money and be available to meet in Memphis. On March 6, 2017, the source advised Holland that a business associate would meet Patricia Parsons to coordinate the payment. An amended contract was drawn up and signed by both parties. The source then contacted Patricia Parsons to discuss the transaction.
On March 3, 2017, Ms. Holland requested the source to accept a Corvette in lieu of the $5,000 payment. The Corvette was owned by the Parsons and located on Patricia Parsons’ property in Brighton, Tennessee. In telephone conversations, Patricia Parsons advised that the Corvette had some problems but was worth approximately $7,000. Three days later, during a series of phone calls, the source advised the defendant that an associate was traveling to the Parson’s property to complete the payment transaction.
Further the source explained to Parsons what the overall operation would entail, including: selling the vehicle to help fund the operation; breaking Mr. Parsons out of jail; kidnapping the Tennessee judge (who was scheduled to preside over her husband’s impending trial) and the Nebraska sheriff; using the plane to transport the abducted individuals to Holland in Canada; and using 30 operatives divided into two teams to accomplish these objectives.
During these calls, defendant Parsons advised that her phone was tapped by the FBI and agreed to call the source on another phone. The defendant called on a different line and indicated that she was ok with the source taking the vehicle and using the plane in Nebraska "as long as the FBI don’t come knockin at my door again." The source explained that the operatives would need to go to Canada because "once we kidnap a judge and a sheriff, our heads are gonna be on the choppin block… and once we do what we gotta do we can never come back." After these discussions, the defendant agreed to meet one of the operatives to complete payment transaction.
On March 6, 2017, an undercover FBI employee posing as an associate of the source exchanged phone calls with the defendant and subsequently met at her residence in Brighton, Tennessee to obtain the Corvette. Due to the fact that the Corvette was inaccessible at the resident, the defendant agreed to provide the associate a 1991 Ford Ranger truck as the down payment for the operation. Parsons could not find the title but signed a note transferring ownership of the vehicle and gave the associate keys to the truck.
Between March 11 and March 15, 2017, the associate made three separate telephone calls to Parsons in order to gain further information on Tipton County Judge Joseph Walker. The associated asked about an address and photo of the judge’s house. The defendant responded that she did not know the specific address but that the judge’s name was "Joseph Walker III" and advised that he was located in Ripley, Tennessee in Lauderdale County. She also agreed to find out more information on the judge. On another call, the defendant advised the associate about a Ripley P.O. Box for the judge and stated he presided over courts in Tipton, Lauderdale, Hardeman, Fayette and one other county. At no time did Parsons attempt to notify any authorities of the impending plot to kidnap a sheriff and judge and free Mr. Parsons’ from jail.
Parsons faces a maximum penalty of 20 years’ imprisonment, a $125,000 fine and five years of supervised release. Sentencing is scheduled for December 1, 2017, before United States District Judge Sheryl H. Lipman.
This case was investigated by the FBI. Assistant U.S. Attorney Stephen Hall is prosecuting this case on the government’s behalf.
MEDIA ADVISORY - Bates Family Scheduled Sentencing to Federal PrisonRead the Press Release
WHAT: Members of the Bates Family are scheduled to be sentenced to federal prison. Charles Larry Bates, father and his son, Charles Edward Bates. DATE: Tuesday, September 5, 2017 TIME: 9:30 a.m. – Charles Larry Bates
1:30 p.m. – Charles Edward Bates WHERE: Courtroom of the Honorable Sheryl H. Lipman
Clifford Davis Odell Horton Federal Building
167 North Main Street
Memphis, TN 38103NOTE: All media members must present government-issued photo I.D. (such as driver’s license), as well as valid media credentials.
Media are required to RSVP to [email protected].
Armed Career Criminal Sentenced to 235 Months in Federal PrisonRead the Press Release
Memphis, TN – Bobby McKinley, 27, of Memphis was sentenced to 235 months in federal prison for being a convicted felon in possession of a firearm. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on February 9, 2016, at approximately 7:19 p.m. Memphis Police Officers observed the defendant operating a gold Honda Accord heading westbound on Vollintine with the bright lights on and facing incoming traffic. Law enforcement conducted a traffic stop and noticed the strong smell of marijuana emanating from the vehicle.
The defendant produced a Tennessee ID card. After checking their data base, MPD discovered that his driver’s license had been suspended. While searching the car, officers found a pill bottle containing 100 Alprazolam pills and a loaded Ruger .45 caliber pistol.
On August 31, 2017, the Honorable Sheryl H. Lipman sentenced McKinley, who had four prior violent felonies, as an armed career criminal to 235 months’ imprisonment and 3 years supervised release to begin after his incarceration.
This case was investigated by Project Safe Neighborhoods, the Memphis Police Department and the U.S. Attorney’s Office, who all work jointly to address gun-related crimes through aggressive investigation and prosecution.
Assistant U.S. Attorney J.William Crow prosecuted this case on the government’s behalf.