Western District of Tennessee
Press releases recorded for this federal judicial district.
Former InSouth Bank Employee Pleads Guilty to Embezzling Almost $900,000Read the Press Release
Memphis, TN – A former bank employee has pled guilty to embezzlement. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the plea today.
Lauren Melissa McDivitt, 46, of Covington, Tennessee, appeared before United States District Judge Sheryl H. Lipman and entered a guilty plea to a one-count information alleging she embezzled $888,470 between 2006 and 2016, from InSouth Bank where she was employed as the Branch Administrator at the 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 e-mail, 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 of various customers to cover amounts she had taken from other customers.
McDivitt faces up to 30 years’ imprisonment; one million dollar fine and 5 years supervised release.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carroll L. Andre III is prosecuting this case on the government’s behalf.
Real Estate Investor Sentenced in Mortgage Fraud SchemeRead the Press Release
Memphis, TN – A Memphis real estate investor has been sentenced to 30 months in federal prison for his role in a scheme to fraudulently obtain mortgage loans. Lawrence J. Laurenzi, Acting U.S. Attorney, announced the sentence today.
An indictment returned last September by a federal grand jury alleged Thomas L. Boyd, 44, the owner of Wonderful Properties, LLC, made false statements and presented false documents to Regions Bank, First Tennesse Bank, Bank of America and Oak Tree Funding on behalf of persons who were financing the purchase of properties from Boyd and Wonderful Properties.
Boyd pled guilty in May to a charge of bank fraud and admitted at his plea hearing to making false statements to Regions Bank in connection with a mortgage loan being made to an individual who was financing the purchase of a property from Boyd.
In imposing the sentence yesterday, U.S. District Judge Sheryl H. Lipman also ordered Boyd to pay total restitution in the amount of $383,375.43 and to serve a 3-year term of supervised release following his release from prison.
The case was investigated by the FBI; Federal Housing Finance Agency (FHFA) – OIG; Department of Housing and Urban Development (HUD); Postal Inspection Service and IRS. Assistant U.S. Attorneys Carroll L. Andre III and Lorraine Craig prosecuted this case on the government’s behalf.
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Twelve Members of the Conservative Vice Lords/Concrete Cartel Street Gang Were Indicted for Federal Racketeering (RICO), Business and Pharmacy Robberies, and Drug TraffickingRead the Press Release
Memphis, TN – Twelve members of the Conservative Vice Lords/Concrete Cartel Street Gang, a nation-wide street gang with its origin and home base in Chicago, Illinois, were charged in a federal indictment for Racketeering (RICO), business and pharmacy robberies and drug trafficking. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.
The indictment alleges that the Concrete Cartel and its members operate mainly in Memphis, Shelby County, Tennessee and North Mississippi. Its leadership consists of a regional/southern leader, a state-wide leader, a city-wide leader and community/division leaders in the areas of (Whitehaven, Orange Mound, East Memphis, South Memphis and North Memphis). Within the organization/street gang, there are different areas of responsibilities or roles: Ministers of Command, Chief Violators, Chiefs of Security, Chief Enforcers, Ministers of Literature, Lieutenants and foot soldiers. Members rise to these positions through acts of violence, including but not limited to: shootings, robbing, and drug and human trafficking. The Concrete Cartel encourages robbing businesses, mainly pharmacies, to take opioids and other Schedule II controlled substances to enrich themselves and the membership.
Davante Turner, William Pinkney, Markease Alexander, Nernest Nesby, Lashawn Shannon, Tondwin Lewis, Arterrious McCalleum, Travon Jones, Rickey Bell, Ariq Eric Rayford, Clemeko Dewayne Starks Jr., and Darnell Trevon Jordan are charged with committing multiple acts of business robberies while using firearms. The indictment alleges that on occasion the Concrete Cartel robbed pharmacies and would later distribute and sell the stolen opioids or controlled substances on the streets of Memphis and elsewhere. Along with the RICO charge, the defendants were also indicted for their participation in the following business robberies, using firearms:
On July 18, 2015, Davante Turner and others robbed CVS Pharmacy at 786 N. Germantown Parkway, Memphis, Tennessee. During this robbery, Turner and others took the following drugs: Oxycodone, Fentanyl and Methylphenidate.
On February 15, 2016, Ariq Eric Rayford, Clemeko Dewaye Starks Jr., and Darnell Trevon Jordan robbed Walgreens Pharmacy at 4653 Elvis Presley Blvd., Memphis, Tennessee. Rayford, Starks Jr., and Jordan attempted to take Roxicodone drugs.
On April 30, 2016,
Travon Jones, Nernest Nesby and Arterrious McCalleum robbed Mojo Vapors at 6522 Quince, Memphis, Tennessee; Exxon Mobil Gas Station at 6021 Mt. Moriah, Memphis, Tennessee; and CVS Pharmacy at 6620 Winchester Road, Memphis, Tennessee.
On May 1, 2016,
Travon Jones, Nernest Nesby and Arterrious McCalleum robbed Circle K at 7195 Winchester Road, Memphis, Tennessee, and Exxon at 6455 E. Shelby Drive, Memphis, Tennessee.
On July 22, 2016, Markease Alexander and others robbed CVS Pharmacy at 786 N. Germantown Parkway, Memphis, Tennessee. During the robbery, Alexander and others took the following drugs: Oxycodone, Oxymorphine and Oxymorphone. Lashawn Shannon distributed the drugs for Alexander and others.
On November 1, 2016, Markease Alexander, Ricky Bell and others robbed CVS Pharmacy at 2115 Union Avenue, Memphis, Tennessee. Bell, Alexander and others took the following drugs: Oxycodone and Acetaminophen, Dextroamphetamine, Oxycodone, Methylphenidate, Lisdexamfetamine and Oxycodone Hydrochloride.
On July 5, 2017, Davante Levert Turner, Tondwin Lewis and William Pinkney robbed CVS Pharmacy at 6620 Winchester Road, Memphis, Tennessee. Turner, Lewis and Pinkney attempted to take Roxicodone drugs.
The indictment is the result of an extensive investigation which began in 2015 by federal, state and local law enforcement officials into the Conservative Vice Lords/Concrete Cartel. This investigation entailed the recovery or seizures of thousands of opioids or controlled substances before the defendants distributed the drugs on the streets.
Lawrence J. Laurenzi, Acting U.S. Attorney, Western District of Tennessee, said, "Today’s indictment serves to demonstrate the commitment of our office and our law enforcement partners to curtail the onslaught of business robberies and to eradicate the violent criminal element from the Western District of Tennessee. As we have previously stated, gang activity will not be tolerated."
"Gangs will not run our city. We will continue to weed out the criminal elements that surround gang motivated crimes, and we will fully support our state and federal partners in prosecuting criminals to the fullest extent of the law" said Michael Rallings, Director, Memphis Police Department.
This case was investigated by the FBI’s Safe Street Task Force and the Multi-Agency Gang Unit of the Memphis Police Department and the Shelby County Sheriff’s Office. Assistant U.S. Attorney Kevin Whitmore is prosecuting this 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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Midsouth Man Indicted After Sexual Assault Kit Processing Links Him to a Series of Kidnappings and Sexual AssaultsRead the Press Release
Memphis, TN – Michael Love has been indicted on charges of kidnapping and brandishing a firearm during the commission of a violent crime. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to information in the indictment, in June 2015, December 2014, and March 2012, Love traveled from Mississippi to Memphis, Tennessee, to commit sexual assault, on each occasion holding a woman against her will and engaging in forced sexual intercourse. In March 2015, April 2014 and November 2013, Love used the Internet or a chat line to meet a woman, and again, on each occasion, held the woman against her will, and committed sexual assault. One of the alleged victims was a minor. It is also alleged that Love twice used a firearm during the commission of the crimes. Love is charged with six counts of kidnapping to commit sexual assault, and two counts of brandishing a firearm during a crime of violence.
Lawrence J. Laurenzi, Acting U.S. Attorney, Western District of Tennessee, said: "We have a moral responsibility to provide a community free from sexual assault. We will use all of our resources to bring these sexual offenders out of the darkness of their homes and into our criminal court system. The people who commit these crimes are cowards who will be prosecuted fully under the law."
A known sample of Love’s DNA was compared to existing DNA profiles in CODIS – the Combined DNA Index System. CODIS is a national database designed to help identify suspects in unsolved cases. Biological evidence collected during examination of a sexual assault victim is preserved in a Sexual Assault Kit, and ultimately, sent to a laboratory for analysis. Once the DNA profile is complete, it is placed into CODIS and regularly compared to profiles developed in other cases. The Memphis Police Department’s Sex
Crimes Bureau, DNA Cold Case Unit, developed Love as a suspect in the indicted cases in part, through use of DNA and CODIS technology.
Love also has matters pending in Shelby County Criminal Court, where he has been charged with rape, aggravated rate, aggravated kidnapping, criminal attempt - kidnapping and robbery.
This case was investigated by the Memphis Police Department (Sex Crimes, DNA Cold Case Unit) and the FBI. Assistant U.S. Attorneys Deb Ireland and Bryce Phillips are prosecuting this case on the government’s behalf.
The charges and allegations in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Crockett County Deputy Sentenced in West Tennessee on Federal Drug Trafficking ViolationsRead the Press Release
Memphis, TN – A former Crockett County Sheriff’s Deputy has been sentenced to 87 months in federal prison on cocaine trafficking and firearms charges. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to the indictment, on February 13, 2017, Calvin Fields aided and abetted others in the distribution of a mixture of substance containing a detectable amount of cocaine. Mr. Fields was in possession of a Glock. 40 caliber pistol in furtherance of the drug trafficking crime.
Federal agents arranged surveillance and saw Calvin Fields stationed in his patrol vehicle while on duty, providing security while cocaine was being delivered by an undercover cooperating source.
"No one is above the law. It is especially disheartening when those entrusted to protect and serve our communities commit criminal acts. Those who do so should know: We will use all our resources to come after you." said Lawrence J. Laurenzi, Acting U.S. Attorney, Western District of Tennessee.
The suspect was arrested on Friday, February 17, 2017, on a federal complaint. The federal grand jury in Jackson returned the indictment on February 21, 2017.
Johnie Carter, Special Agent in Charge, Violent Crime and Drug Task Force, 28th Judicial District said: "When a Law Enforcement Officer commits a criminal act, they violate the trust of the community as well as their fellow Law Enforcement Officers. It angers everyone involved and tarnishes the badge that 99% of officers work so hard at keeping polished. The West Tennessee Drug Task Force works very hard at ridding West
Tennessee of the dangerous drugs and violent crime and those who are responsible. A Law Enforcement Officer is no different and must face the same justice as anyone else."
On August 8, 2017, Chief United States District Judge S. Thomas Anderson sentenced Fields to 87 months’ imprisonment and 3 years supervised release. While sentencing Fields, Judge Anderson said "this case was one of the most troublesome cases of official corruption he had seen my time on the bench."
This case was investigated by members of the FBI Memphis Division’s Jackson Resident Agency, the Crockett County Sheriff’s Office and the 28th Judicial District Violent Crime and Drug Task Force. Assistant U.S. Attorney Matt Wilson prosecuted this case on the government’s behalf.
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Tennessee Man Sentenced for Unauthorized Access of Former Employer's NetworksRead the Press Release
An Arlington, Tennessee man was sentenced today to 18 months in prison and two years of supervised release for intentionally accessing a competing engineering firm’s computer network without authorization in order to obtain proprietary information. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Lawrence J. Laurenzi of the Western District of Tennessee made the announcement.
Jason Needham, 45, co-owner of HNA Engineering, was sentenced before U.S. District Judge John T. Fowlkes Jr. of the Western District of Tennessee for intentionally accessing without authorization the computer networks of his former employer, Allen & Hoshall. In addition to his prison term, Needham was ordered to pay $172,393.71 in restitution to Allen & Hoshall.
“The Criminal Division is committed to ensuring that American businesses are protected from unauthorized access to their systems and information, and our ability to execute this mission is dependent on building a trusting relationship with private industry,” said Acting Assistant Attorney General Blanco. “Allen & Hoshall’s robust cooperation and partnership with our prosecutors and agents in this case resulted in a successful outcome and ensured that Mr. Needham was held accountable for his criminal activity.”
“This case shows that law enforcement officials throughout the Western District of Tennessee will work together to ensure that individuals participating in any criminal act will be brought to justice,” said Acting U.S. Attorney Laurenzi. “It is imperative that our business and corporate community remain protected from cybercrimes and other illegal security threats. The corporate community is a vital part of growth and development for any city. The professionals in the U.S. Attorney’s Office, Western District of Tennessee, will continue our mission to ensure the safety and security of our businesses and corporations in our district. Security crimes will not be tolerated in this district. We will come after you.”
A spokesperson for Allen & Hoshall stated, “We believe that computer crimes are serious and that pursuing and prosecuting violators in an ethical and responsible manner are important aspects of maintaining the safety and security of private, confidential information for everyone. We are grateful that the government conducted such a prosecution in this case. We believe the Court’s sentence will send a clear message to Mr. Needham and the greater business community that cybercrimes, electronic snooping and otherwise accessing electronic information without authorization are real crimes that are unacceptable under the law and are subject to severe penalties.”
According to admissions made in connection with his guilty plea, Needham admitted to repeatedly accessing, over a nearly two-year period, Allen & Hoshall’s servers to download digitally rendered engineering schematics and more than 100 PDF documents containing project proposals and budgetary documents. Needham also admitted to accessing, on hundreds of occasions, the email account of a former colleague at Allen & Hoshall, which provided Needham access to the firm’s marketing plans, project proposals, company fee structures and the rotating account credentials for the company’s internal document-sharing system. According to the plea, Needham used his unauthorized access to view, download and copy proprietary business information worth over $500,000.
The FBI investigated the case. Assistant U.S. Attorney Debra L. Ireland of the Western District of Tennessee and Senior Counsel Timothy C. Flowers of the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division prosecuted the case.
Memphis Man Sentenced for Theft of U.S. Treasury ChecksRead the Press Release
Memphis, TN –A Memphis man was sentenced to federal prison for Theft of Government Property and Forging United States Treasury Checks. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, and Tracey D. Montano, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation announced the sentence today.
On July 28, 2016, a 4-count federal indictment was filed against Paul Edward Robinson, 52, charging him with stealing United States Treasury federal income tax refund checks, forging endorsements and fraudulently cashing the checks. He was convicted of all 4-counts on April 5, 2017, following a 3-day jury trail.
Robinson was sentenced on August 2, 2017, by U.S. District Judge Samuel H. Mays, Jr., to 21-months in federal prison. As part of his sentence, Robinson was ordered to pay $87,429.43 in restitution and serve a 2-year term of supervised release following his release from prison.
This case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney Carroll L. Andre, III prosecuted this case on the government’s behalf.
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One Gangster Disciple Sentenced on RICO Conspiracy Charges While Two Other Gangster Disciples Plead GuiltyRead the Press Release
Jackson, TN – A Jackson, Tennessee Gangster Disciple was sentenced to 292 months in federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
On July 31, 2017, Daniel Lee Cole, a/k/a "D-Money," 38, was sentenced to 292 months in federal prison for conspiracy to participate in racketeering activities. As part of his plea of guilty entered in December 2016, Cole admitted that he was a past Governor of the 731 region (Jackson, TN) and was also Literature Coordinator. Cole admitted to conspiring to distribute narcotics with the other 15 Gangster Disciples who were included in the indictment.
Cole further admitted to attacking and injuring a rival gang member in 2002; to pointing a handgun at a victim in 2014, while another Gangster Disciples struck the victim with a beer bottle and threatened to kill that victim for witnessing Gangster Disciples criminal activity; and to being involved in an incident where Gangster Disciples assaulted a victim for refusing to recant prior statements made to law enforcement that incriminated a senior member of the gang in 2015. During this last incident, Cole admitted that one of the gang members shot at a vehicle containing the witness and several passengers.
The Gangster Disciples is a highly-organized criminal street gang with nationwide reach. In addition to Tennessee, the gang reportedly operates in more than 35 states. The Gangster Disciples were organized into different positions, including board members, and governor-of-governors who each controlled geographic regions; governors, assistant governors, chief enforcers and chief of security for each state or regions within the state where the Gangster Disciples were active; and coordinators and leaders within each local group. The indictment alleges that the Gangster Disciples members and associates participated directly in the criminal activities of the enterprise – including murder,
kidnapping, assault, intimidation of witnesses and victims, narcotics distribution and weapons trafficking.
On the same day that Cole was sentenced, two other Gangster Disciples, Tommy Lee Wilkins, a/k/a "Tommy Gunz" and Byron Montrail Purdy, a/k/a "Ghetto," who were charged in the same indictment, pleaded guilty before U.S. District Judge John T. Fowlkes Jr., to conspiracy to participate in a racketeering enterprise. Wilkins and Purdy are the third and fourth of the 16 indicted defendants to plead guilty. Wilkins is scheduled to be sentenced by the Honorable John T. Fowlkes Jr., on November 17, 2017, at 9:30 a.m. and Purdy will be sentenced before the same Judge on December 1, 2017, at 9:30 a.m.
This case was investigated by the FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Tennessee Bureau of Investigation; JPD Gang Enforcement Team; Memphis Police Department; Shelby County Sheriff’s Office; 28th District West Tennessee Drug Task Force; 26th, 25th, and 30th Judicial District Attorney’s General’s Offices; Sheriff’s Offices for Tipton, Desoto, Madison, and Fayette Counties; and the Police Departments of Bartlett, Germantown and Columbia.
Assistant U.S. Attorney Beth Boswell and Special Assistant U.S. Attorney Sam Stringfellow prosecuted this case on the government’s behalf.
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Man Charged with Fatally Shooting MPD Officer Sentenced to 27 ½ years in Federal PrisonRead the Press Release
Memphis, TN – A man charged with fatally shooting Memphis Police Department Officer Sean Bolton was sentenced today for being a convicted felon in possession of ammunition and armed carjacking. The defendant, Tremaine Wilbourn, 31, has pending state charges for capital murder. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
On August 1, 2015, Wilbourn was in the passenger seat of a vehicle parked on a street in East Memphis when Officer Bolton approached the vehicle. Officer Bolton attempted to detain Wilbourn before the defendant pulled a 9mm pistol and shot Bolton several times.
Facts from hearings in the case outline that shortly after the shooting, Wilbourn used a firearm to carjack a man of a 2002 Honda Accord.
On July 28, 2017, the Honorable U.S. District Judge Sheryl H. Lipman sentenced Wilbourn to 25 years’ imprisonment and 3 years supervised release. Wilbourn also received an additional 30 months of incarceration for violating his supervised release, which is to run consecutive to his 25-year sentence.
The state charges against Wilbourn for the murder of Officer Bolton are pending.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in conjunction with the Memphis Police Department. The U.S. Attorney’s Office prosecuted this case on the government’s behalf.
Lake County Man Arrested on Federal “Ice” ChargesRead the Press Release
Jackson, TN – A Lake County man has been indicted on federal drug charges. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.
Agents with the Drug Enforcement Administration, along with the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tennessee Bureau of Investigation, and the Lake County Sheriff’s Department arrested Will Jones in the early morning hours of July 27, 2017, in Lake County, Tennessee.
A federal grand jury in Jackson, Tennessee returned a three count indictment against Jones for distributing actual methamphetamine ("ice") on July 17, 2017, but the indictment remained under seal until yesterday’s arrest.
This arrest was the result of an approximately 10-month investigation in which law enforcement officials have seized over a kilo of actual methamphetamine, approximately $148,000 dollars in cash, a loaded handgun and three vehicles.
If convicted, Jones faces up to life imprisonment and $20,000,000 fine.
This case is being investigated by Drug Enforcement Administration, Tennessee Bureau of Investigation and Lake County Sheriff’s Department. Assistant U.S. Attorneys James Powell and Beth Boswell are 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.
Former Chief Accounting Officer Sentenced to 33 Months in Federal PrisonRead the Press Release
Memphis, TN – The former Chief Accounting Officer for a Memphis business conglomerate was sentenced to 33 months in federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
Jim Tyson "Ty" Jenkins, 46, pleaded guilty in April to mail fraud. According to information presented in court at the time of his guilty plea, Jenkins, the former Chief Accounting Officer for Blake Enterprises, defrauded Blake and an affiliate company, Reliable Finance, of approximately $1.1 million between 2011 and March 2017. Jenkins carried out the fraud by authorizing loans against the cash values of life insurance policies issued by Voya Financial and owned by the Reliable Finance retirement plan.
In addition to his duties as CAO, Jenkins was administrator for Reliable’s retirement plan. Jenkins contacted Voya and requested loans against the policies. Voya mailed loan proceeds checks to Reliable. Jenkins deposited the checks to Reliable bank accounts at First Tennessee Bank and InSouth Bank. Jenkins, who was authorized to transact business on the accounts, thereafter stole the funds by writing checks payable to himself, depositing them to his personal account at Regions Bank, and using the funds for his personal benefit.
On July 28, 2017, the Honorable John T. Fowlkes Jr., sentenced Jenkins to 33 months in federal prison. As part of his sentence, Jenkins was also ordered to pay $999,020.82 in restitution and serve a 3-year term of supervised release following his release from prison.
This case was investigated by the United States Postal Inspection Service. Assistant U.S. Carroll L. Andre III prosecuted this case on the government’s behalf.
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Federal, State and Local Effort Yields 19 Indictments for Illegal Possession of Firearms and Federal Drug Charges with Three Additional Cases PendingRead the Press Release
Memphis, TN – Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced today 19 indictments charging 22 defendants with illegal possession of firearms and use of firearms during violent crimes.
"At the ‘Fed Up’ press conference, held earlier this week, local, state and federal agencies pledged to exhaust every available resource to bring criminals to justice. These indictments represent our stated commitment to aggressively pursue people who illegally possess firearms. Our community is ‘Fed Up’ with mindless violence and we will work tirelessly to ensure safer communities for all of our citizens," said Lawrence Laurenzi, Acting U.S. Attorney, Western District of Tennessee.
These cases were collective investigative efforts of the Safe Streets Task Force, which includes the Memphis Police Department; Shelby County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI and the U.S. Attorney’s Office. The Project Safe Neighborhood (PSN) Task Force includes the Shelby County District Attorney’s Office; Memphis Police Department; the Shelby County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Attorney’s Office. These organizations all work jointly to address gun-related crimes through aggressive investigation and prosecution. The PSN Task Force meets weekly to examine every gun crime committed in Shelby County as well as gun crimes from other counties submitted by the ATF.
The charges and allegations in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Car Lot Owner Pleads Guilty in Scheme to Defraud Area BanksRead the Press Release
Memphis, TN – The United States charged a Memphis man for committing bank fraud against various banks in the Memphis and West Tennessee area. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the plea today.
According to the charging instrument, from December 2011 through February 2014, Baron Marshall owned Southwind Auto Sales ("Southwind"). Marshall and unknown co-conspirators, not charged, participated in a deceptive scheme to defraud Shelby County Federal Credit Union, Regions Bank and Bank of Fayette County ("Banks") by applying for loans for associates to purchase luxury vehicles from Southwind.
Marshall would receive the funds from the Banks and then refused to produce vehicle titles to the Banks, and in some instances, released bank liens. As a result of the scheme, the banks collectively suffered a loss of over $244,000.
Marshall pled guilty to one count of bank fraud during the referenced time period. The maximum penalty for bank fraud is 30 years in prison and a $1,000,000 fine. The sentencing hearing will be held on October 6, 2017.
The case was investigated by the United States Secret Service. Assistant U.S. Attorney Damon Keith Griffin is prosecuting the case on the government’s behalf.
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Memphis Man Who Shot Firearm in Community Center was Sentenced to 78 Months in Federal PrisonRead the Press Release
Memphis, TN – Marcus Dotson, 28, has been sentenced to 78 months in federal prison for illegal possession of ammunition. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented at trial, on the evening of February 5, 2016, the Memphis Police Department responded to an aggravated assault call at Riverside Community Center on 1891 Kansas Street. The community center’s recreation leader informed law enforcement that around 6 p.m., he was overseeing a scrimmage basketball game that was set to begin in the gymnasium between boys ranging in ages from 6 to 10. Before the game began, Marcus Dotson, 27, and his 14-year old nephew, entered the gym in search of a 16-year old victim.
Dotson, a convicted felon at the time of the incident, became embroiled in an argument with patrons on the bleachers, brandished the firearm at the crowd, and fired one shot into the ceiling. Both Dotson and his nephew fled the scene. An arrest warrant was issued for Dotson. He was apprehended two weeks later.
As a result of the Memphis Police Department’s investigation, one Speer .40 caliber shell casing was recovered from the gymnasium. The investigation also yielded surveillance of Dotson running from the gymnasium after the shooting, as well as witness’ identification of the defendant from a photo line-up.
On July 25, 2017, the Honorable Samuel H. Mays sentenced Dotson to 78 months’ confinement and 3 years supervised release to begin after his incarceration. Dotson currently has state criminal charges pending. The federal and state sentences will run concurrently.
The case was investigated by the Memphis Police Department’s Project Safe Neighborhoods Unit. Assistants U.S. Attorneys Karen Hartridge and Jerry Kitchen prosecuted this case on the government’s behalf.
Twelve Indicted on Federal Drug Trafficking Charges in West TennesseeRead the Press Release
Jackson, TN - Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced today the unsealing of an indictment charging 12 suspects with federal drug trafficking violations.
The suspects were arrested earlier today during a round-up conducted by members of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Tennessee Bureau of Investigation (TBI), the Tennessee Highway Patrol (THP), the 24th Judicial District Drug Task Force, the Jackson-Madison County Metro Narcotics Unit, both the Jackson and Madison County SWAT teams, and the McNairy County Drug Task Force. The twelve defendants named in the indictment are crystal methamphetamine traffickers.
The indictment was returned by a federal grand jury in Jackson on July 17, 2017, but remained sealed until today’s arrests. The indictment contains counts alleging violations of the Controlled Substances Act, counts alleging illegal possession of firearms after being convicted of a felony, as well as counts for possession of firearms in furtherance of a drug trafficking crime.
The suspects arrested during the operation are:
• Kevin Smith, 44, Saltillo, TN;
• Phillip Steely, 51, Jackson, TN;
• Deena Orr, 38, Huntingdon, TN;
• Steven Jones, 41, Reagan, TN;
• Heather Walker, 36, Parsons, TN;
• Dina Evans, 54, Decaturville, TN;
• Doug Evans, 52, Bath Springs, TN;
• Rhonda Carter, 48, Iuka, MS;
• Ashley Sweat, 39, Adamsville, TN (already in custody on state charges);
• David Mathis, 50, Lexington, TN;
• Jennifer Holley-Melton, 42, Lutts, TN
Lawrence J. Laurenzi, Acting U.S. Attorney, Western District of Tennessee, said: "Along with our federal, state and local partners, the U.S. Attorney’s Office will continue to use every lawful tool we have to take violent offenders and drug traffickers off our streets. We will bring criminals to justice. That’s our commitment to the citizens in the Western District."
Count 1 charges Kevin Smith, Phillip Steely, Joshua Tucker, Deena Orr, Steven Jones, Heather Walker, Dina Evans, Doug Evans, Rhonda Carter, Ashley Sweat, David Mathis and Jennifer Holley-Melton with conspiracy to possess with the intent to distribute 50 grams or more of actual methamphetamine.
Count 2 charges Kevin Smith, Phillip Steely, Joshua Tucker, Deena Orr, Steven Jones, Heather Walker, Dina Evans, Doug Evans, Rhonda Carter, Ashley Sweat, David Mathis and Jennifer Holley-Melton with aiding and abetting each other to possess with the intent to distribute 50 grams or more of actual methamphetamine.
Count 3 and 4 charges Kevin Smith with knowingly distributing actual methamphetamine and knowingly distributing over 50 grams of actual methamphetamine.
Count 5 charges Kevin Smith, Deena Orr and Phillip Steely with knowingly possessing with intent to distribute 5 or more grams of actual methamphetamine.
Count 6 charges Joshua Tucker with knowingly possessing with intent to distribute 50 grams or more of actual methamphetamine.
Counts 7 and 8 charge Joshua Tucker with being a felon in possession of an AR-15 style rifle and a 9 mm pistol.
Counts 9 and 10 charge Joshua Tucker with possessing two firearms in furtherance of a drug trafficking offense.
During the course of the over 9-month investigation, law enforcement officials have seized illicit narcotics, 5 firearms, 5 vehicles and $7,600 dollars in cash.
The charges in the indictment stem from the illegal activity of participating in a conspiracy to distribute and to possess with the intent to distribute ice (methamphetamine with more than 80% purity).
"This case is a great example of local, state and federal agencies working together on multi-jurisdictional investigations, targeting violent drug organizations preying on the citizens of West Tennessee. The subjects of this investigation were responsible for the distribution of large quantities of crystal methamphetamine. The dismantlement of this
organization should send a clear message that law enforcement and federal prosecutors are here to attack these threats with everything at our disposal," said Jim Catalano DEA Resident Agent in Charge.
The case was investigated by the Drug Enforcement Administration, along with the Tennessee Bureau of Investigation, the 24th Judicial District Drug Task Force, and Jackson-Madison County Metro Narcotics. Assistant United States Attorneys Taylor Eskridge and Beth Boswell are 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.
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Former Sheriff’s Deputy Indicted for Solicitation to Tamper with a WitnessRead the Press Release
Memphis, TN - A former Shelby County Sheriff’s Office deputy has been indicted for soliciting a person to murder a witness in a federal case. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the superseding indictment 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 March, additional charges were added to the indictment, which alleged an incident of extortion of another alleged drug dealer in late 2013.
The Shelby County Sheriff’s Office has since received information that Drewery solicited a person to kill one of the witnesses in the earlier indictment and notified the FBI.
Drewery was assigned to the Shelby County’s Sheriff’s Office’s Narcotics Task Force, but has since been terminated from the department.
On Thursday, July 13, 2017, Drewery had his initial appearance in federal court before U.S. Magistrate Judge Charmiane G. Claxton.
Drewery is charged with two counts of Hobbs Act Extortion; two counts of Receipt of a Bribe by a Government Agent; and one count of Solicitation to Commit a Crime of Violence.
If convicted, he faces up to 20 years in federal prison and a fine of up to $250,000.
This case is being 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.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Felon in Possession of Firearm Sentenced to 180 Months in Federal PrisonRead the Press Release
Jackson, TN – Caricus Hendrix, 30, was sentenced to 180 months in federal prison for being a 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 August 8, 2016, investigators with the Jackson Police Department (JPD) observed a vehicle parked in the parking lot of Pandora’s Box blocking the flow of traffic. When investigators approached the vehicle, Hendrix admitted that he had an open container of alcohol and that a firearm was in the center console of the vehicle.
A search of Hendrix revealed "Molly" or ethylone. The firearm, a Smith and Wesson 9mm pistol, was found to be stolen out of Murfreesboro, Tennessee.
On July 12, 2017, the Honorable J. Daniel Breen sentenced Hendrix, who had three prior serious drug offense convictions, as an Armed Career Offender to 15 years’ confinement and a total of 3 years supervised release to begin after his incarceration.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Jackson Police Department and the U.S. Attorney’s Office, who have all worked jointly to address gun-related crimes through aggressive investigation and prosecution. Assistant U.S. Attorney Taylor Eskridge prosecuted this case on the government’s behalf.
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Armed Career Criminal Sentenced to 15 Years for Being a Felon in Possession of a FirearmRead the Press Release
Jackson, TN – Preston Bryson, 40, was sentenced to 180 months in federal prison for being a 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 September 1, 2016, members of the West Tennessee Violent Crimes and Drug Task Force, attempted to serve an outstanding parole violation warrant on Bryson in Humboldt, Tennessee, when Bryson fled on foot. Agents apprehended him a short distance away and found methamphetamine and cocaine near where Bryson fled.
Agents later located a North American Arms .22 caliber revolver in the same area after Bryson, in a recorded jail call, admitted that he had thrown a "strap" in the wood line while fleeing from agents.
On July 12, 2017, the Honorable J. Daniel Breen sentenced Bryson, who had three prior serious drug offense convictions, as an Armed Career Offender to 15 years’ confinement and a total of 5 years supervised release to begin after his incarceration.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the West Tennessee Violent Crimes and Drug Task Force; and the U.S. Attorney’s Office, who have all worked jointly to address gun-related crimes through aggressive investigation and prosecution.
Assistant U.S. Attorney Taylor Eskridge prosecuted this case on the government’s behalf.
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Girlfriend of Craigslist Robber Suspect Sentenced to Six MonthsRead the Press Release
Memphis, TN – A woman who made false statements during the purchase of a firearm has been sentenced to six months in federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on October 22, 2015, Ashley Jones, 27, purchased a Romarm Cugir 7.62 X 39mm caliber pistol from Guns & Ammo in Memphis, TN. At the time of purchase, Jones completed and signed a federal form indicating she was the actual buyer of the firearm and was not acquiring the firearm on behalf of another person. The defendant was charged with making a false statement during the purchase of a firearm, violating Title 18, United States Code, Section 922-(a)(6).
On February 25, 2016, two victims were robbed at gunpoint of $16,000 cash in the area of Joslyn Street and Hillwood. The victims planned to use the cash to purchase a 2010 Chevrolet Silverado pickup truck which had been listed on Craigslist. During the robbery, the victims were approached by three males armed with guns. The victims struggled with the robbers, closed the doors to their vehicle and sped away. One of the suspects fired several shots at the victims as they departed. The vehicle was hit by seven gunshots; however, there were no physical injuries to the victims.
At the crime scene, the investigating officers found nine shell casings and a Romarm Cugir that was left behind by the suspects. During the investigation, ATF learned Jones was the owner of the firearm.
On April 1, 2016, the defendant was arrested when an investigation of another Craigslist robbery led to her residence, where drugs and guns were recovered. During an interview with law enforcement, Jones stated that her boyfriend, Jackie Spears, gave her money to purchase the Romarm Cugir pistol. She also stated that Spears was present at the time of
purchase at the gun store and she subsequently gave him the firearm. According to Jones, Spears had given her money in the past to purchase firearms. It was later determined that at the time of purchase, Spears was a convicted felon. Spears is currently charged in state court for participating in one of the robberies.
On Friday, July 7, 2017, U.S. District Judge Sheryl H. Lipman sentenced Ashley Jones to six months in federal prison.
"This case shows that law enforcement officials throughout the Western District of Tennessee will work together to ensure that individuals participating in any criminal act with firearms will be brought to justice" said Lawrence Laurenzi, Acting U.S. Attorney, Western District of Tennessee.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Multi-Agency Gang Unit. Assistant U.S. Attorney Marques Young prosecuted this case on the government’s behalf.
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Five “Gangster Disciples” Violent Gang Members Sentenced to A Total of 1,334 Months in Federal PrisonRead the Press Release
Memphis, TN – The "Gangster Disciples" Chief of Security involved in the violent shooting that occurred at Hillview Apartments was sentenced to 263 months in federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
As Chief of Security, Edwin Carvin aka "Ren," was responsible for ensuring the security of fellow gang members and providing protection from law enforcement or rival gangs. The Gangster Disciples are a violent criminal gang which began in the Chicago, Illinois area. In the 1970’s, the leaders of two different Chicago-based gangs, the Black Disciples and the Supreme Gangsters, aligned their respective groups and created the Gangster Disciples.
Once united, the Gangster Disciples began recruiting heavily in Chicago, within Illinois jails and prisons, and throughout the United States. By the mid-1980’s, the group had spread throughout the Midwestern and Eastern United States. The Gangster Disciples are active in approximately 35 states including Tennessee.
According to information presented at sentencing, on June 21, 2014, Florence Anthony, a member of the Gangster Disciples, got into an altercation with a group of individuals at the Hillview Apartments located in Memphis, Tennessee. Anthony reported the confrontation to her Gangster Disciples chain-of-command. Based on Anthony’s report, the Gangster Disciples chain-of-command issued orders to retaliate against those responsible for the attack on Anthony and her children.
At approximately 10:30 p.m., Carvin and four other members of the Gangster Disciples returned to the Hillview Apartments to retaliate against what were identified as rival gang members. Each individual was armed with firearms and proceeded on foot through the
apartments shooting four juveniles and one adult male. All five victims survived, but some sustained serious bodily injuries.
The defendants and their respective sentences:
- Florence Anthony, aka "Nikki," 135 months;
- Edwin Carvin, aka "Ren," 263 months;
- Robert Mallory, aka "Rambo," 292 months;
- Brandon Milton, aka "Lil Folk," 262 months;
- Erik Reese, aka "E," 382 months
The case was investigated by the Federal Bureau of Investigation, the Multi-Agency Gang Unit, Police Departments for Memphis, Bartlett and Germantown; Sheriff’s Offices for Tipton, Desoto and Shelby; and the Tennessee Bureau of Investigation Crime Lab.
Assistant U.S. Attorneys Jerry Kitchen, Michelle Kimbril-Parks, and Special Assistant U.S. Attorney Sam Stringfellow prosecuted this case on the government’s behalf.
Henry County Felon in Possession of Weapons Sentenced to 110 Months in Federal PrisonRead the Press Release
Jackson, TN – Marvin Steinberg, 38, was sentenced to 110 months in federal prison for possession with intent to distribute methamphetamine and being a felon in possession of firearms. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on November 6, 2015, members of the Henry County Sheriff’s Office executed a search warrant at Steinberg’s home in Paris, Tennessee, because of suspected methamphetamine and firearm possession.
Upon execution of the warrant, officers located six firearms, ammunition, and a loaded AK magazine. Officers also found methamphetamine along with digital scales, pipes, a "bong" and a gas mask. Steinburg, who was present, admitted to officers that the methamphetamine and some of the firearms were his.
On June 29, 2017, the Honorable J. Daniel Breen sentenced Steinberg to nearly 10 years’ confinement and received a total of 3 years supervised release to begin after his incarceration.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Henry 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. Assistant U.S. Attorney Taylor Eskridge prosecuted this case on the government’s behalf.
Memphis Man Pleads Guilty in Scheme to Defraud Financial InstitutionsRead the Press Release
Memphis, TN – A Memphis man pleaded guilty to committing bank fraud against financial institutions in the Memphis area. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the conviction 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. The fraud consisted of 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 closed accounts totaling $110,831.95 were deposited into accounts at the banks. Immediately after deposits were made in the banks, withdrawals were made by Garner and others not named in the indictment. Garner would give co-conspirators some of the proceeds withdrawn from the banks.
Garner pled guilty to two counts of bank fraud during the five-year period. The maximum penalty for bank fraud is 30 years in prison and a $1,000,000 fine. The sentencing hearing will be held on September 28, 2017.
The case was investigated by the United States Secret Service. Assistant U.S. Attorney Damon Keith Griffin is prosecuting this case on the government’s behalf.
Memphis Man Charged with Distributing a Lethal Dose of FentanylRead the Press Release
Memphis, TN – On June 29, 2017, a federal grand jury returned a four-count indictment against 30-year-old Cortez Armstrong, aka "B.B.," for distribution of a variety of narcotics including fentanyl which resulted in the death of 21-year-old Z.R. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, on or about October 9, 2016, Armstrong distributed fentanyl to Z.R. The victim’s body was discovered by law enforcement during the early morning hours of October 10, 2016 at 3799 Shelby Drive, Memphis, Tennessee. The cause of Z.R.’s death was determined to be the result of a fentanyl overdose.
"Pursuant to federal law, a person who distributes fentanyl which causes the death of the buyer is criminally responsible for the buyer’s death even though the drug dealer did not intend to harm the buyer. Last year the Mid-South lost far too many lives to drug overdoses. Law enforcement will not sit idly by while the death toll continues to rise," said Acting U.S. Attorney Lawrence J. Laurenzi.
The penalty for distribution of fentanyl where death or serious bodily injury results is not less than 20 years in prison, but if the defendant has a prior felony drug conviction then life.
This case is being investigated by the Drug Enforcement Administration (DEA) and Memphis Police Department. Assistant U.S. Attorneys Michelle Kimbril-Parks and J. William Crow are prosecuting this case on the government’s behalf.
22-Members and Associates of California’s Grape Street Crips and Memphis’ Peda Roll Mafia and Individuals with Ties to Mexican Cartel were Indicted on Federal Drug Trafficking ChargesRead the Press Release
Memphis, TN – Twenty-two members and associates of the Grape Street Crips/The Peda Roll Mafia were charged by a federal grand jury with multiple drug and money laundering offenses. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the unsealing of the two federal-indictments today.
The indictments allege that seventeen of the defendants are members of, or associated with, the Memphis Peda Roll Mafia, a local street gang that distributes multiple types of illegal drugs in and around the Memphis area. Law enforcement first identified the gang operating around the Bella Vista Apartment complex in Memphis. The indictment further alleges that Fred McCaster Jr., a/k/a/ the "Original Gangster," directs the activities of the Memphis gang. John Shields, O.B. Hildson, Ivory Tripplett Jr., Clyde Wade III, Rayhem Jones, Darrin Beecham, Jeremy Davis and Antonion Fisher are members of the Peda Roll Mafia, while Jerry McMaster, Jeremy Davis, Antonion Fisher and Damion Cox are associated with the Peda Roll Mafia.
Five people named in the indictments reside in California and are members or associates of the Grape Street Crips / Peda Role Mafia, a gang that engages in drug trafficking nationwide. The indictment alleges that Reginald Wright, Sr., Reginald Wright, Jr., Brandon Curcio, Donnell Tousant and Tyrell Chance are members in California. According to court papers filed in Chicago, Eric Avendano is connected to the Mexican cartels. Brothers Eric J. Avendano and Calvin Avendano are U.S. citizens.
During the investigation, law enforcement officials determined that members of the Peda Roll Mafia established a pipeline of illegal drugs throughout the Mid-South area. As members of the Grape Street Crips, they supplied heroin, marijuana, methamphetamine, cocaine and various other pharmaceutical drugs to the Peda Roll Mafia gang who then
distributed the drugs throughout the Western District of Tennessee and the Mid-South area.
The two indictments are the result of an extensive investigation by federal, state and local law enforcement officials into the Peda Roll Mafia, which began in 2013.
Larry Laurenzi, Acting U.S. Attorney, said, "Today’s arrests demonstrate the commitment of law enforcement partners to remove the violent criminal element from the Western District of Tennessee. Gang activity will not be tolerated."
"ATF along with its partners work diligently to protect the public from these senseless acts of violence. ATF will remain vigilant as we engage with the community and foster a safe environment. Support from the public is crucial as the reporting of illegal activity is encouraged through ATF’s report it phone app," said Steve Gerido, Special Agent-In-Charge.
The defendants in custody are:
• Eric J. Avendano, a/k/a "Menace"
• Reginald Wright Jr., a/k/a "Reg" a/k/a "Unc"
• Reginald Wright Sr.,
• Montrell Ray Bernard, a/k/a "Big Ray" a/k/a/ "Ray"
• Donnell Tousant, a/k/a/ "Don"
• Fred McCaster Jr., a/k/a "Boo Dirty" a/k/a/ "Dirty" a/k/a "OG"
• John Shields, a/k/a "John John" a/k/a "John Juan"
• Ivory Triplett Jr, a/k/a "Woodie" a/k/a "Woodie Grape"
• Jeremy Davis
• Raheym Jones
• Antonio Fisher
• Darrin Beecham
• Lucinda Sanders
• Tameka Joyner McCaster
• Brandon Curcio
• Tonja HoseyAVENDANO INDICTMENT
Count 1 charges Calvin Avendano, Eric Avendano, Montrell Ray Bernard, Donnell Tousant, Tyrell Chance, Fred McCaster, John Shields, O.B. Hildson, Clyde Wade III, Ivory Tripplett Jr., Jeremy Davis and Jerry Sherrod McCaster with conspiracy to possess with the intent to distribute one (1) kilogram of heroin.
Count 2 charges Calvin Avendano, Eric Avendano, Montrell Ray Bernard, Donnell Tousant, Tyrell Chance, Fred McCaster, John Shields, O.B. Hildson, Clyde Wade III, Ivory Tripplett Jr., Jeremy Davis, Jerry Sherrod McCaster, Raheym Jones and Antonio Fisher
with conspiracy to possess with the intent to distribute five (5) kilograms of cocaine.
Count 3 charges Calvin Avendano, Eric Avendano, Montrell Ray Bernard, Donnell Tousant, Tyrell Chance, Fred McCaster, John Shields, O.B. Hildson, Clyde Wade III, Ivory Tripplett Jr., Jeremy Davis, Jerry Sherrod McCaster, Raheym Jones and Antonio Fisher with conspiracy to possess with the intent to distribute 500 grams of methamphetamine.
Count 4 charges Calvin Avendano, Eric Avendano, Donnell Tousant and Clyde Wade III with possession with intent to distribute 500 grams of methamphetamine.
Count 5 charges Calvin Avendano, Eric Avendano and Clyde Wade III with possession with intent to distribute 500 grams of methamphetamine.
Count 6 charges Calvin Avendano, Eric Avendano, John Shields and Jeremy Davis with possession with intent to distribute one (1) kilogram of heroin.
Count 7 charges Calvin Avendano, Eric Avendano and O.B. Hildson with possession with intent to distribute 500 grams of cocaine.
Count 8 charges Calvin Eric Avendano, Montrell Ray Bernard, Tyrell Chance and Fred McCaster with possession with intent to distribute 100 grams of heroin.
Count 9 charges Calvin Avendano, Eric Avendano, Fred McCaster, John Shields, O.B. Hildson, Clyde Wade III, Jeremy Davis, Jerry Sherrod McCaster, Raheym Jones and Antonio Fisher with conspiracy to commit money laundering.
WRIGHT INDICTMENT
Count 1 charges Reginald Wright Jr., Reginald Wright Sr.,Montrell Ray Bernard, Donnell Tousant, Tyrell Chance, Fred McCaster, John Shields, O.B. Hildson, Clyde Wade III, Ivory Tripplett Jr., Jerry Sherrod McCaster, Raheym Jones, Damion Cox, Lucinda Sanders, and Antonio Fisher with conspiracy to possess with the intent to distribute marijuana.
Count 2 charges Reginald Wright Jr., Reginald Wright Sr., Montrell Ray Bernard, Donnell Tousant, Tyrell Chance, Fred McCaster, John Shields, O.B. Hildson, Clyde Wade III, Ivory Tripplett Jr., Jerry Sherrod McCaster, RaheymJones, Damion Cox, Lucinda Sanders, and Antonio Fisher with conspiracy to possess with the intent to distribute hydrocodone.
Count 3 charges Reginald Wright Jr., Reginald Wright Sr., Montrell Ray Bernard, Donnell Tousant, Tyrell Chance, Fred McCaster, John Shields, O.B. Hildson, Clyde Wade III, Ivory Tripplett Jr., Jerry Sherrod McCaster, Raheym Jones, Damion Cox, Lucinda Sanders, and Antonio Fisher with conspiracy to possess with the intent to distribute oxycodone (OxyContin).
Count 4 charges Reginald Wright Jr. and Montrell Ray Bernard with possession with the intent to distribute marijuana.
Counts 5 and 6 charge Reginald Wright Jr. and O.B. Hildson with possession with the intent to distribute marijuana.
Count 7 charges Reginald Wright Jr. and John Shields with possession with the intent to distribute marijuana.
Count 8 charges Reginald Wright Jr. and Lucinda Sanders with possession with the intent to distribute marijuana.
Count 9 charges Reginald Wright Jr., Reginald Wright Sr., Fred McCaster, John Shields, O.B. Hildson, Clyde Wade III, Ivory Tripplett Jr., Jerry Sherrod McCaster, Damion Cox, Lucinda Sanders, Darrin Beecham, Brandon Curcio and Antonio Fisher with, conspiracy to commit money laundering.
Count 10 charges Fred McCaster Jr and Tonja Hosey with, conspiracy to structure currency deposits.
The investigation resulted in the seizure of 11,950 grams of marijuana, 3,270 grams of cocaine, 2,880 grams of heroin, and 3,260 grams of methamphetamine.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Drug Enforcement Administration (DEA); U.S. Marshals Service; Multi-Agency Gang Unit; Memphis Police Department; and the Shelby County Sheriff’s Office. Assistant U.S. Attorneys Kevin Whitmore and Mark Erskine are prosecuting this 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.
Two Members of the “Gangster Disciple” Gang Sentenced to a Total of More than 500 Months in Federal PrisonRead the Press Release
Memphis, TN – Two members of the violent "Gangster Disciples" street gang were sentenced to federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentences today.
The Gangster Disciples are a violent criminal gang which began in the Chicago, Illinois area. In the 1970’s, the leaders of two different Chicago-based gangs, the Black Disciples and the Supreme Gangsters, aligned their respective groups and created the Gangster Disciples.
Once united, the Gangster Disciples began recruiting heavily in Chicago, within Illinois jails and prisons, and throughout the United States. By the mid-1980’s, the group had spread throughout the Midwestern and Eastern United States. The Gangster Disciples are active in approximately 35 states including Tennessee.
According to information presented at sentencing, on June 21, 2014, Florence Anthony, a member of the Gangster Disciples, got into an altercation with a group of individuals at the Hillview Apartments located in Memphis, Tennessee. Anthony reported the confrontation to her Gangster Disciples chain-of-command. Based on Anthony’s report, the Gangster Disciples chain-of-command issued orders to retaliate against those responsible for the attack on Anthony and her children.
At approximately 10:30 p.m., Erik Reese and four other members of the Gangster Disciples returned to the Hillview Apartments to retaliate against what were identified as rival gang members. Each individual was armed with firearms and proceeded on foot through the apartments shooting four juveniles and one adult male. All five victims survived, but some sustained serious bodily injuries.
On March 8, 2017, seven members of the Gangster Disciples pled guilty to committing violent crimes in aid of racketeering activity.
On June 22, 2017, Senior District Judge Samuel H. Mays sentenced Florence Anthony to 135 months in federal prison, along with 3 years’ supervised release. Erik Reese was sentenced to 382 months imprisonment and 3 years’ supervised release.
The case was investigated by the Federal Bureau of Investigation, the Multi-Agency Gang Unit, Police Departments for Memphis, Bartlett and Germantown; Sheriff’s Offices for Tipton, Desoto and Shelby; and the Tennessee Bureau of Investigation Crime Lab.
Assistant U.S. Attorneys Jerry Kitchen and,Michelle Kimbril-Parks, and Special Assistant U.S. Attorney Sam Stringfellow, prosecuted this case on the government’s behalf.
Two Henry County Felons in Possession of Weapons Sentenced to 149 Months in Federal PrisonRead the Press Release
Jackson, TN – Jeffrey Whitehead and Keenan Kendall were sentenced to 149 months in federal prison for being felons in possession of firearms. Lawrence J. Laurenzi, Acting U.S. Attorney, announced the sentences today.
According to information presented in court, on January 5, 2016, members of the Henry County Sheriff’s Office executed a search warrant at the Springville, TN., home of Jeffrey Whitehead, 29, because of suspected marijuana distribution from the home. Upon execution of the warrant, Whitehead, who was present, told the officer that he had marijuana in the house and a few firearms. Whitehead told officers that he knew he was not allowed to be in possession of any firearms. A search of the home and Whitehead’s truck revealed 45.4 pounds of marijuana, $4,500 in cash, and digital scales, along with 6 firearms.
On January 27, 2017, officers with the Henry County Sheriff’s Office executed a search warrant at the home of Keenan Kendall, 40, on suspicion of marijuana distribution. A search of the home in Paris, TN., revealed two sets of digital scales, marijuana and a loaded firearm.
On June 22, 2107, the Honorable J. Daniel Breen sentenced both Whitehead and Kendall. Whitehead received a sentence of more than 7 years in federal prison and 3 years supervised release. Kendall was sentenced to nearly 5 years in federal prison and received a total of 3 years supervised release.
These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Henry 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. Assistant U.S. Attorney Taylor Eskridge prosecuted these cases on the government’s behalf.
West Tennessee Man Convicted of Distributing Heroin That Resulted in Fatal OverdoseRead the Press Release
Memphis, TN – A man responsible for distributing a large amount of heroin that resulted in the fatal overdose of one person has been convicted of distributing heroin. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced today.
According to information presented in court, on June 7, 2017, a federal grand jury returned a superseding indictment charging Marvin Foster with five counts for violating Title 21, United States Code, Section 841 (a)(1). According to the superseding indictment, Marvin Foster, aka "Pookie," 49, of Halls, Tennessee, distributed heroin to C.T. and the heroin distributed by Foster was the cause of C.T.’s death.
On June 16, 2017, Foster plead guilty to Count 1 of the superseding indictment. Had the case proceeded to trial, the United States would have shown that:
On or about July 1, 2014, Foster sold heroin to C.T.; C.T. used the heroin and overdosed. Subsequently, Foster drove C.T.’s truck, with C.T. in the truck, to a rural area, where Foster left the victim. On July 2, 2014, a farmer saw the truck and called police. The police arrived and found C.T. was dead. A medical examiner would have testified that the cause of death was heroin toxicity. Furthermore, C.T.’s blood was analyzed by a forensic toxicology lab and showed a lethal amount of heroinwas present in the blood. In addition, the United States would have presented witnesses that would have testified that Foster sells heroin and pills, and that Foster obtained heroin from a source of supply in Nashville.
Foster and the United States have recommended a 25-year sentence of imprisonment.
This case is being investigated by the 25th Judicial Drug Task Force and Drug Enforcement Administration. Special Assistant U.S. Attorney Sam Stringfellow and Assistant U.S. Attorney Beth Boswell are prosecuting this case on the government’s behalf.
Somerville Woman Sentenced for Theft of Government FundsRead the Press Release
Memphis, TN – A Somerville woman was sentenced to 36 months imprisonment for theft of government funds. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, Tenika Finnie-Smith, owner of Elite Tax Service, was a repeat felony offender who stole the identities of tax-payers. Without the knowledge or permission of the taxpayer, Smith used clients’ personal information to file 2011 and 2012 false tax returns with the Internal Revenue Service. Smith also listed false claims on tax returns and made deposits.
From 2011 and 2012, Smith deposited more than $190,000 in tax refunds into her personal bank account. She would immediately withdraw the funds to use for gambling and other personal benefits without notifying tax-payers. As a result of the theft, some tax-payers never received a refund.
The case was investigated by the United States Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Damon Keith Griffin is prosecuting this case on the government’s behalf.
Jackson Man Sentenced to over 11 Years in Federal Prison for Possession of Prescription Pills with Intent to DistributeRead the Press Release
Jackson, TN – George Ward, 49, was sentenced to 11 years in federal prison for possession of prescription pills with intent to distribute. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, George Ward, 49, of Jackson, Tennessee, unlawfully possessed with intent to distribute large quantities of Morphine, Amphetamine, Zolpidem(Ambien), Hydrocodone, Methadone, Alprazolam (Xanax), and Hydromorphone.
In February 2013, the Jackson Police Department (JPD) Gang Enforcement Team and the Jackson-Madison County Narcotics Unit executed a search warrant at a house as part of an ongoing narcotics investigation involving the defendant. Ward was present at the location during the search warrant’s execution. Law enforcement agents determined that he was staying in the house’s guest bedroom. While searching the room, law enforcement discovered approximately 6,500 pills contained in several different bags. The seized pills included: 2,317 Morphine pills; 2,247 Amphetamine pills; 684 Zolpidem pills; 482 Hydrocodone pills; 456 Methadone pills; 260 Alprazolam pills; and 89 Hydromorphone pills.
The pills were packaged in numerous Ziploc bags, indicative of pills that are being distributed. There were also numerous pills in wholesale pharmacy bottles that individuals are prohibited from possessing, indicative of pills for resale. Drug ledgers were also seized in Ward’s room, which referenced certain strengths of the narcotics, pills with certain markings, as well as the number of pills and prices.
At the time of the search, Ward was on parole for a state conviction of possession of cocaine with intent to sell.
A federal jury convicted Ward on August 17, 2016, of seven counts of unlawful possession with intent to distribute prescription pills – individual counts for Morphine, Amphetamine, Zolpidem, Hydrocodone, Methadone, Alprazolam, and Hydromorphone.
On June 8, 2017, the Honorable J. Daniel Breen sentenced Ward to more than 11 years in federal prison. On counts 1, 2, 4, 5, and 7, Ward was sentenced to 136 months to run concurrent with 120 months on counts 3 and 6. Ward received a total of 6 years supervised release to begin after his incarceration.
The case was investigated by the Jackson-Madison County Metro Narcotics Unit; Jackson Police Department Gang Enforcement Team; and the Drug Enforcement Administration. Assistant U.S. Attorney Beth C. Boswell prosecuted this case on the government’s behalf.
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Memphis Man Sentenced to 484 Months in Federal Prison for Robbing Multiple BusinessesRead the Press Release
Memphis, TN – Terry Farris was sentenced to 484 months in federal prison for armed robbery affecting interstate commerce. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, during the month of January 2016, Eugene Cox, 23, and Squantivia S. Patterson, 23, both of Memphis; and Terry Farris, 38, of Millington, participated in multiple armed robberies of seven Memphis businesses: Shoney’s, Family Dollar, Krystal’s, Circle K, Church’s, Subway and Beauty and Beyond.
The guilty verdict followed a jury trial before the Honorable Sheryl Lipman, U.S. District Judge. Evidence at trial showed Terry Farris, along with Eugene Cox and Squantivia Patterson, committed two robberies together.
On January 13, 2016, the trio robbed the Shoney’s at 308 Covington Pike. Later that evening, the men robbed Circle K at 6133 Macon. Cox and Patterson were captured on surveillance video inside the Circle K, while Farris remained outside of the business and served as the lookout. After the robbery of Circle K, the men parted ways.
On January 14, 2016, Farris robbed Family Dollar at 2711 Getwell and Krystal’s at 3675 Lamar. On January 16, 2016, he robbed Church’s at 925 Poplar. That same day, Cox and Patterson robbed Subway at 2938 Covington Pike. While committed on the same day, the robberies were unrelated. Cox and Patterson committed their last robbery on January 23, 2016, at the Beauty and Beyond beauty supply, 9024 Covington Pike.
As a result of the Memphis Police Department’s investigation, latent prints lifted from the crime scene at Family Dollar were determined to be the same inked impressions belonging to Farris. The investigation also yielded surveillance video from Family Dollar, Krystal’s and Church’s along with victims’ identification of Farris from photo line-ups.
The case was investigated by detectives from the Memphis Police Department’s Safe Streets Task Force. Assistant U.S. Attorneys Karen Hartridge and Kevin Whitmore prosecuted this case on the government’s behalf.
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Convicted Felon Sentenced to 120Months in Federal Prison for Illegally Possessing a FirearmRead the Press Release
Memphis, TN – Melvin Hutchieson, 29, was sentenced to 120 months in federal prison for being a 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 July 16, 2015, two men were repairing an air conditioner when the defendant robbed them at gunpoint. He took approximately $400 in cash and a Ruger .40 caliber pistol. The Ruger was reported stolen. During an unrelated drug investigation, Bartlett Police Department Detectives received information that Hutchieson was selling drugs and that he drove a gold Chevy Suburban.
On September 29, 2015, Bartlett detectives executed a search warrant for the Suburban and the residence where they believed the defendant was selling drugs. When the detectives arrived at the address to execute the warrants, they saw the defendant leaving in the Suburban. The detectives attempted to stop the Suburban, but the defendant continued to drive.
The defendant eventually stopped the car and was taken into custody. The detectives searched the Suburban and recovered a loaded Ruger.
Memphis Police Department detectives conducted a photographic lineup and the defendant was identified as the person who robbed the victims at gunpoint in July. The detectives also confirmed that the Ruger recovered in the Suburban was the weapon the defendant stole from the victims.
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.
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Gangster Disciple Sentenced to 110 Months in Federal Prison for Illegally Possessing a Weapon and Counterfeit MoneyRead the Press Release
Jackson, TN – Gangster Disciple Tarrice Martez McCarley, 32, has been sentenced to 110 months in federal prison for being a felon in possession of a firearm and possession of counterfeit Federal Reserve notes. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on January 5, 2016, investigators with the Jackson Police Department Gang Enforcement Unit stopped a vehicle driven by Tarrice Martez McCarley. McCarley had an open warrant at the time of the stop. He got out of the car in a residential area of North Parkway in Jackson, TN with a fully loaded Llama .38 caliber revolver in his hand. The defendant dropped the firearm and fled on foot. An investigator deployed his Taser in an attempt to stop McCarley. McCarley was taken into custody shortly thereafter. McCarley was a several time convicted felon.
During an interview, McCarley admitted he had purchased the gun for $100 from someone on the street. At the time of his arrest, the defendant had 11 counterfeit one hundred dollar bills in his wallet. All the bills had the same serial number.
The case was investigated by the Jackson Police Department, Gang Enforcement Unit; Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Federal Bureau of Investigation. Assistant U.S. Attorney Beth Boswell prosecuted this case on the government’s behalf.
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Gangster Disciple Pleads Guilty to RICO ConspiracyRead the Press Release
Memphis, TN – Derrick Kennedy Crumpton, the Assistant Governor of the Gangster Disciples for the State of Tennessee, has pleaded guilty to both RICO and drug conspiracy charges. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to the indictment, as the Assistant Governor of the Gangster Disciples, Crumpton directed other members and associates of the enterprise in carrying out criminal activity with other Gangster Disciples gang leaders, as well as participated directly in the criminal activities of the enterprise - including murder, kidnapping, assault, intimidation of witnesses and victims, narcotics distribution, and weapons trafficking.
"It is important that gang members are aware that if they engage in drug dealing and/or violent acts that they will receive a stiff prison sentence. Mr. Crumpton’s guilty plea demonstrates that joining a violent street gang is a dead-end decision that will end badly for its members," said Acting U.S. Attorney Laurenzi.
Crumpton is 1 of 16 Gangster Disciples in the Memphis and Jackson area indicted in May 2016 for conspiring to participate in a racketeering enterprise. On Tuesday, May 30, 2017, Crumpton pleaded guilty before U.S. District Judge John T. Fowlkes, Jr., to conspiracy to participate in a racketeering enterprise and conspiracy to distribute narcotics. Crumpton is the second of 16 indicted defendants to plead guilty. Daniel Cole pleaded guilty on December 21, 2016.
Crumpton is scheduled to be sentenced by the Honorable John T. Fowlkes, Jr., on Thursday, August 17, 2017, at 10:00 a.m. He faces up to life in federal prison and a fine of up to $10,000,000.
The case was investigated by the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Drug Enforcement Administration (DEA); Tennessee Bureau of Investigation (TBI); the Multi-Agency Gang Unit, Police Departments for Memphis, Bartlett, Germantown, and Jackson; Sheriff’s Offices for Tipton, Desoto, Madison, Fayette, and Shelby County; and the West Tennessee Drug Task Force.
Assistant U.S. Attorneys Jerry Kitchen, Beth Boswell, Michelle Kimbril-Parks, and Special Assistant United States Attorney Sam Stringfellow are prosecuting this case on the government’s behalf.
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Former Regions Bank Branch Manager Sentenced to 15-Months in Federal PrisonRead the Press Release
Memphis, TN – The former manager of the Regions BankWhitehaven North Branch was sentenced to 15-months in federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
Renwick Chavez Edwards, 46, pled guilty in February of this year to a charge that he embezzled $45,002.71 from Regions Bank in March 2014. According to information presented in court by the United States, at the time of Edwards’ guilty plea between October 2013 and March 2015, Edwards embezzled approximately $223,000 from accounts of Regions’ customers.
In addition to the 15-month sentence in federal prison, Edwards was ordered to pay restitution to Regions Bank in the amount of $226,332.02 and to serve a period of three years on supervision after his release from prison.
The case was investigated by the United States Secret Service. Assistant U.S. Attorney Carroll L. Andre III is prosecuting this case on the government’s behalf.
Former Law Firm Office Manager Charged Defrauding Law Firm of over $400,000Read the Press Release
Memphis, TN – A federal grand jury returned a 39-count indictment against a former law firm office manager. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.
The indictment alleges 38 counts of wire fraud, and one count of interstate transportation of monies stolen or taken by fraud. Misty West, 40, of Olive Branch, Mississippi, was employed as the office manager, bookkeeper and paralegal at the Fowler Law Firm, located on Dr. Martin Luther King, Jr., Avenue in Memphis. Between August 2011 and July 2016, West engaged in a scheme to defraud the law firm and its owner, Charles Wesley Fowler, of more than $400,000.
In some instances, West presented blank checks drawn against the firm’s Suntrust Bank account and asked Fowler to sign the checks telling him she needed to pay the firm’s bills. Fowler signed the checks in blank and West completed the payee information and the amounts. The indictment alleges that West routinely made some of the checks payable to herself and deposited them to her Suntrust account and used the funds to pay her personal bills and expenses. West fraudulently obtained approximately $308,000 in this manner.
The indictment alleges that West also fraudulently obtained a debit card associated with a Suntrust account styled “Charles Wesley Fowler, d/b/a, the Candy Factory.” The Candy Factory was the name of a group of office suites owned by Fowler and which were leased to other individuals and businesses. After obtaining the debit card, the indictment alleges that West used the card to make ATM withdrawals without Fowler’s knowledge. West fraudulently obtained approximately $90,000 in this manner.
According to the indictment, West used the internet to transfer funds from the law firm’s account to pay her personal cell phone bill without Fowler’s knowledge or authorization. West fraudulently obtained approximately $17,000 in this manner.
West faces a maximum penalty of 20 years’ imprisonment, $250,000 fine and 3 years supervised release on the 38 counts of wire fraud, and 10 years’ imprisonment, $250,000 fine and 3 years supervised release on the count charging interstate transportation of monies stolen or taken by fraud.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carroll L. Andre III is prosecuting this case on the government’s behalf.
Former Chief Accounting Officer Pleads Guilty in Million Dollar Fraud SchemeRead the Press Release
Memphis, TN – The former Chief Accounting Officer for a Memphis business conglomerate has pleaded guilty to mail fraud. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to the criminal information filed by the United States Attorney’s Office, Jim Tyson Jenkins, 46, also known as Ty Jenkins, was the Chief Accounting Officer for Blake Enterprises, LLC, a local business conglomerate affiliated with several other businesses including Reliable Finance Company, Inc.
In connection to his guilty plea, Jenkins admitted that between 2011 through March 2017, he defrauded Blake Enterprises and Reliable Finance of approximately $1.1 million by authorizing loans against the cash values of life insurance policies. The policies were issued by Voya Financial and were owned by the Reliable Finance Company retirement plan. In addition to his duties as Chief Accounting Officer, Jenkins was the retirement plan administrator.
According to information presented in court, Jenkins contacted Voya and requested loans against the policies. Voya mailed loan proceeds checks to Reliable. Jenkins deposited the checks to Reliable Finance accounts at First Tennessee Bank or InSouth Bank. Jenkins, who was authorized to transact business on the accounts, thereafter stole the funds by writing checks payable to himself, depositing them to his personal account at Regions Bank and using the funds for his personal benefit.
Jenkins faces a maximum penalty of 20 years’ imprisonment, $250,000 fine and 3 years supervised release. The defendant is scheduled to be sentenced on July 28, 2017, by U.S. District Judge John T. Fowlkes, Jr.
The case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorney Carroll L. Andre III is prosecuting this case on the government’s behalf.
Tennessee Family Convicted of Decade-Long Gold and Silver Ponzi SchemeRead the Press Release
Memphis, TN – After a five-week trial, 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 an 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 Boulder, Colorado. More than three hundred and sixty victims lost more than twenty-one million dollars due to the defendants’ illegal scheme, which lasted from as early as 2002 through October of 2013.
"Unfortunately, fraud, corruption and embezzlement can occur everywhere, including in the investment world," said Larry Laurenzi, Acting United States Attorney, who prosecuted the case along with Assistant U.S. Attorney David Pritchard. "People need to be mindful of this terrible fact and work hard to protect themselves and their families from those who prey on others, like the Bates family preyed on so many innocent victims. As this case shows, the United States Attorney’s Office and its law enforcement partners work diligently to expose people responsible for such fraudulent acts, to vigorously prosecute them, and to bring them to justice."
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, predicting an economic collapse and emphasizing 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 defendant diverted customers’ monies that were to be used to purchase precious metals to the defendants own use and
benefit. Testimony at trial showed that by 2009, 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 Bates, Chuck and Robert Bates were salespeople in the Memphis office and were responsible for taking in victims’ monies. More than forty-five witnesses testified about losing money to Larry Bates and First American Monetary Consultants. The victims,who lived 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. Similarly, 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 tested 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 what she was promised. 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.
Larry Bates was convicted on all 46 counts in the indictment. Chuck Bates was found guilty of 18 counts of mail and wire fraud and one count of conspiracy. Robert Bates was convicted of five counts of mail fraud, three counts of wire fraud, and one count of conspiracy. Kinsey Bates was convicted on one count of conspiracy and two counts of wire fraud.
Each count of conviction carries a potential sentence of 20 years in prison and a potential fine of $250,000. The defendants also face potential forfeiture and restitution penalties. The defendants are scheduled to be sentenced on August 3, 2017, by U.S. District Judge Sheryl H. Lipman.
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.
Real Estate Investor Pleads Guilty in Mortgage Fraud SchemeRead the Press Release
Memphis, TN – A Memphis real estate investor has pled guilty to a charge of bank fraud. Lawrence J. Laurenzi, Acting U.S. Attorney, announced the guilty plea today.
In September 2016, Thomas L. Boyd, 44, was indicted by a federal grand jury in connection with a scheme to fraudulently obtain mortgage loans. The indictment alleged that Boyd, the owner of Wonderful Properties, LLC made false statements and presented false documents to Regions Bank, First Tennessee Bank, Bank of America and Oak Tree Funding on behalf of persons who were financing the purchase of properties from Boyd and Wonderful Properties.
According to the indictment, Boyd often made false statements on the loan closing documents by failing to disclose to the lenders on HUD-1 settlement statements that he was kicking back a portion of the loan proceeds to borrowers. Boyd’s scheme caused the lenders to disburse approximately $635,000 in loan proceeds.
At his plea hearing, Boyd admitted making false statements to Regions Bank in connection with a mortgage loan being made to an individual who was financing the purchase of a property from Boyd.
Boyd faces a maximum penalty of 30 years of imprisonment on the bank fraud charge and a fine of up to $1,000,000 and 5 years supervised release and a mandatory special assessment of $100.
The defendant is scheduled to be sentenced on August 9, 2017, by U.S. District Judge Sheryl H. Lipman.
The case was investigated by the FBI; Federal Housing Finance Agency (FHFA) – OIG; Department of Housing and Urban Development (HUD); Postal Inspection Service and IRS. Assistant U.S. Attorney Carroll L. Andre III is prosecuting this case on the government’s behalf.
Convicted Felon in Possession of a Firearm Sentenced to 120 Months in Federal PrisonRead the Press Release
Memphis, TN – Jamie Thomas, 29, was sentenced to 120 months in federal prison for being a 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 September 10, 2014, Memphis Police Department (MPD) detectives conducted a traffic stop at Nabors Way and Collins Chapel Circle. As officers approached Thomas’ vehicle he placed something in his mouth, locked the doors and rolled up the windows, to a point where only an arm could reach inside. The defendant presented law enforcement with his license but refused to turn off the vehicle.
After disobeying law enforcement’s directives to turn off the engine, the officer reached through the passenger side window, unlocked the door and turned off the vehicle. The defendant restarted the engine and accelerated the vehicle, while he and the detective struggled over control of the vehicle. Described as wearing a pink hat and pink shirt, the defendant jumped from the vehicle and ran. The vehicle was driverless, as the detective was in the passenger seat. The detective jumped from the passenger seat to the driver seat to stop the moving vehicle. While fleeing on foot, the defendant tossed a Smith and Wesson .40 caliber pistol.
During his flight, Thomas unknowingly flagged down an undercover detective who was driving an unmarked vehicle. The defendant agreed to pay the undercover detective $200 to take him out of the area. After driving for a short time, the detective advised the defendant that he was under arrest. He then attempted to handcuff the defendant, but Thomas was able to escape again. The defendant was subsequently arrested a short time later at his residence.
When officers with the Project Safe Neighborhoods (PSN) Task Force attempted to arrest the defendant on the federal warrant relating to the September 10, 2014, firearm possession, detectives observed the defendant exit a window and jump into another window of a second floor apartment building while attempting to escape. The defendant was arrested after making it to the ground floor.
The case was investigated by 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. Attorneys Marques Young and Murre Martindale prosecuted this case on the government’s behalf.
Man Charged with Fatally Shooting MPD Officer Pleads Guilty to Separate Federal ChargesRead the Press Release
Memphis, TN – A man charged with fatally shootingMemphis Police Department Officer Sean Bolton has pled guilty to federal charges of armed carjacking and being a convicted felon in possession of ammunition. The defendant, Tremaine Wilbourn, 31, has pending state charges for capital murder. Lawrence J. Laurenzi, Acting U.S. Attorney announced the guilty plea today.
On August 1, 2015, Wilbourn, was in the passenger seat of a vehicle parked on a street in East Memphis when Officer Bolton approached the vehicle. Officer Bolton attempted to detain Wilbourn before the defendant pulled a 9mm pistol and shot Bolton several times.
Facts from the hearing outline that shortly after the shooting, Wilbourn used a firearm to carjack a man of a 2002 Honda Accord.
Wilbourn faces a mandatory 25-years of imprisonment and a fine of up to $250,000. There is no parole in the federal system. The defendant is scheduled to be sentenced on July 28, 2017, by U.S. District Judge Sheryl H. Lipman.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in conjunction with the Memphis Police Department. The U.S. Attorney’s Office is prosecuting this case on the government’s behalf.
One “Gangster Disciple” Gang Member Sentenced While Another IndictedRead the Press Release
Jackson, TN – One member of the violent "Gangster Disciples" street gang was sentenced as a felon in possession of a firearm, while another has been indicted on 4-counts of violent crime in aid of racketeering activity, as well as associated weapons charges. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentencing and indictment today.
Sentencing
According to information presented at sentencing, on July 13, 2015, officers with the Jackson Police Department responded to a domestic disturbance call at 318 West Forest Avenue. After the defendant Brandon Purdy, 27, answered the door, law enforcement saw what was later determined to be a loaded black and silver Smith and Wesson .40 caliber handgun on the kitchen counter within reach of Purdy.
After Purdy was arrested, law enforcement was given consent to search the remainder of the apartment. During the search, a Cobra .380 caliber pistol was found under the couch. Purdy made admissions in a recorded jail call to having knowledge and possession of the two firearms.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) laboratory located in Atlanta, Georgia, did NIBIN testing on the weapons found in Brandon Purdy’s possession. NIBIN, or the National Integrated Ballistics Information Network, is an ATF led program that is used to link violent criminals to the violent crimes they commit by using the firearms they possess or use. The NIBIN program allows law enforcement to leverage technology to assist local agencies, such as the Jackson Police Department, to solve violent crimes. NIBIN is not only instrumental in Jackson, TN, but also in other parts of the country where the criminal element uses firearms to commit crimes of violence.
The weapons possessed by Purdy were tested and compared with evidence recovered from past Jackson crime scenes. The .40 caliber Smith and Wesson pistol was determined to have been used in two Gangster Disciples shootings.
Purdy is a documented member of the Gangster Disciples street gang. His brother, Byron Purdy, is recognized as Governor of Tennessee for the gang, making him the highest ranking Gangster Disciple member in the State. Byron Purdy is currently charged in a 16 defendant indictment with racketeering and drug crimes.
On April 12, 2017, Senior District Judge J. Daniel Breen sentenced Brandon Purdy to the maximum penalty within his guideline range of 37 months’ imprisonment.
Second Indictment for Douglas
On April 17, 2017, Dontoreus Douglas, 29, was indicted in the Western District of Tennessee on 4 counts of violent crimes in aid of racketeering activity (VICAR). Each count is based upon the attempted murder of four different victims on June 12,2012. Each of the VICAR counts has a corresponding count for using and carrying a firearm during and in relation to a crime of violence. There is also one count for being a felon in possession of a firearm.
According to the indictment, Douglas and other members and associates of the Gangster Disciples engaged in narcotics distribution, firearms trafficking, and acts of violence, involving murder, attempted murder and assault.
The Gangster Disciples enterprise has a highly-organized structure with nationwide reach. As of the date of the indictment, the Gangster Disciples were active in 35 states. It is further alleged in the indictment that Douglas committed the attempted murders for the purpose of gaining entrance to or maintaining or increasing position within the Gangster Disciples.
For the four counts of violent crime in aid of racketeering activity, the maximum penalty is 10 years in prison and a $250,000 fine. Each of the using and carrying a firearm in relation of a crime of violence counts has a potential penalty of not less than 10 years, consecutive to the respective VICAR counts.
Douglas is presently in federal custody for charges that are pending from an indictment returned against him in June 2016. That indictment alleges charges of possession of marijuana with intent to distribute, felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime.
The case was investigated by the ATF and the Jackson Police Department, Gang Enforcement Unit. Assistant U.S. Attorney Beth Boswell 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.
Tennessee Man Pleads Guilty to Unauthorized Access of Former Employer’s NetworksRead the Press Release
An Arlington, Tennessee man pleaded guilty today to intentionally accessing a competing engineering firm’s computer network without proper authorization in order to obtain proprietary information, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Lawrence J. Laurenzi of the Western District of Tennessee.
Jason Needham, 45, co-owner of HNA Engineering, pleaded guilty today before U.S. District Judge John T. Fowlkes Jr. of the Western District of Tennessee. Sentencing is set for July 14, 2017.
As part of his guilty plea, Needham admitted that, over a nearly two-year period, he repeatedly accessed the servers of Allen & Hoshall, his former employer, to download digitally rendered engineering schematics and more than 100 PDF documents containing project proposals and budgetary documents. Needham also admitted to accessing, on hundreds of occasions, the email account of a former colleague at Allen & Hoshall, which provided Needham access to the firm’s marketing plans, project proposals, company fee structures and the rotating account credentials for the company’s internal document-sharing system. According to the plea, Needham used his unauthorized access to view, download and copy proprietary business information worth approximately $425,000.
The FBI investigated the case. Assistant U.S. Attorney Debra L. Ireland of the Western District of Tennessee and Trial Attorney Timothy C. Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.
Needham InformationArlington, Tennessee Man Pleads Guilty to Unauthorized Access of Former Employer’s NetworkRead the Press Release
Memphis, TN – An Arlington, Tennessee man has pleaded guilty to unauthorized access of his former employer’s network. Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to the indictment, Jason Needham, 45, co-owner of HNA Engineering, intentionally accessed the network of a competing engineering firm, Allen & Hoshall, without authorization, and used that access to view, download, and copy proprietary business information worth approximately $425,000.
In connection with his guilty plea, Needham admitted that over a nearly two-year period, he repeatedly accessed the servers of Allen & Hoshall, his former employer, to download digitally rendered engineering schematics and more than 100 PDF documents containing project proposals and budgetary documents. Needham also admitted to accessing, on hundreds of occasions, the email account of a former colleague at Allen & Hoshall, which provided Needham access to Allen & Hoshall’s marketing plans, project proposals, company fee structures, and the rotating account credentials for the company’s internal document-sharing system.
Needham is scheduled to be sentenced by U.S. District Judge John T. Fowlkes, Jr., on July 14, 2017, at 10:00 a.m.
The FBI investigated the case. Assistant U.S. Attorney Debra L. Ireland of the Western District of Tennessee and Trial Attorney Timothy C. Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case on the government’s behalf.
Federal Jury Convicts Memphis Man for Illegal Possession of Firearm and AmmunitionRead the Press Release
Memphis, TN – A jury has convicted a Memphis man of illegally possessing ammunition while a convicted felon. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the conviction today.
According to information presented at trial, on the evening of February 5, 2016, the Memphis Police Department responded to an aggravated assault call at Riverside Community Center on 1891 Kansas Street. The community center’s recreation leader informed law enforcement that around 6 p.m., he was overseeing a scrimmage basketball game that was set to begin in the gymnasium between boys ranging in ages 6 to 10. Before the game began, Marcus Dotson, 27, and 14-year old nephew, entered the gym in search of a 16-year old victim.
Dotson, a convicted felon at the time of the incident, became embroiled in an argument with patrons on the bleachers, brandished the firearm at the crowd, and fired one shot into the ceiling. Both Dotson and Freeman fled the scene. An arrest warrant was issued for Dotson. He was apprehended two weeks later.
As a result of the Memphis Police Department’s investigation, one Speer .40 caliber shell casing was recovered from the gymnasium. The investigation also yielded surveillance of Dotson and Freeman running from the gymnasium after the shooting, as well as witness identification of the defendant from a photo line-up.
The guilty verdict followed a jury trial before the Honorable Samuel H. Mays, U.S. Senior District Judge. For the one count, the maximum penalty is 10 years in prison and a $250,000 fine. Sentencing is set for July 14, 2017 at 10 a.m.
The case was investigated by the Memphis Police Department’s Project Safe Neighborhoods Unit. Assistant U.S. Attorneys Karen Hartridge and Jerry Kitchen prosecuted this case on the government’s behalf.
Memphis Man Sentenced to 262 Months in Prison for Armed RobberyRead the Press Release
Memphis, TN – A Memphis man has been sentenced to 262 months in federal prison for committing an armed robbery affecting interstate commerce. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to information presented in court, on the morning of June 13, 2016, Patrick Owens, 48, of Memphis, Tennessee, entered the Bartlett Prescription Shop at 5675 Stage Road, brandishing a firearm. He went behind the pharmacy counter where three employees were working, demanded the employees open the vault containing prescription medication and took several hundred prescription pills of various types. Owens then threatened an employee with the firearm and took her car keys to aid in his escape, forcing the employees into the restroom at the back of the store at gunpoint.
Surveillance video shows Owens entered the employee’s vehicle but did not leave the parking lot. While sitting in the vehicle, a Bartlett Police Officer entered the store. Owens then exited the vehicle and ran into the woods.
Owens was caught near the scene moments later,wearing the same outfit as the individual seen in the surveillance video from the pharmacy. Police also found a bag of pills, an Arminius .38 caliber revolver, a red hat, a surgical mask, and gloves near the scene and near where Owens was found. He was arrested and taken in for questioning. Four days after his arrest, Owens confessed to the robbery of the Bartlett Prescription Shop.
In January 2016, Owens pleaded guilty before U.S. District Judge John T. Fowlkes to one count of robbery affecting interstate commerce and one count of use of a firearm during a crime of violence.
On Thursday, April 6, 2017, Judge Fowlkes sentenced Owens to 262 months in federal prison.
The case was investigated by the Bartlett Police Department and by detectives from the Memphis Police Department’s Safe Streets Task Force. Assistant U.S. Attorney Elizabeth Rogers prosecuted this case on the government’s behalf.
Memphis Man Indicted for Armed Robbery of Two United States Postal Letter CarriersRead the Press Release
Memphis, TN –A federal grand jury has indicted a Memphis man for robbing two United States Letter Carriers at gunpoint. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the federal complaint, on November 21, 2016, at approximately 12:35 p.m., the U.S. Postal Inspection Service (USPIS) was notified of an armed robbery in the area of 890 Baltic Street. Jamal Cherry, 20, approached U.S. Postal Service Letter Carrier Shalottie Reynolds with a semi-automatic handgun as she placed the mail satchel in her postal truck. Cherry asked the victim for cash or checks from the vehicle, and he then took an unknown number of soft envelope packages.
After canvassing the area, USPIS Inspectors located a nearby home surveillance video camera capturing the defendant fleeing the scene in a blue 2005 Toyota Matrix.
The investigation led law enforcement to Cherry’s residence at 4528 Sugar Creek Road in Memphis where Cherry was located. After Cherry left the residence, he was taken into custody. Law enforcement observed a red Toyota Matrix in the drive-way. Pursuant to a search warrant, law enforcement inspected the car and observed blue paint on the door frame, indicating the car had been repainted.
According to the indictment, the defendant has also been charged with committing another armed robbery of a U.S. Postal Letter Carrier, on December 2, 2016. After waiving his Miranda rights, Cherry admitted to the robbery of the U.S. Postal Letter Carriers on November 21, 2016 and December 2, 2016. He admitted to possessing a handgun during the robberies, taking packages from both robberies and having the Toyota Matrix painted red.
Cherry has been charged in counts one and three of the indictment with robbery of a postal employee. He faces up to 10 years in federal prison, $250,000 fine and three year’s supervised release on each count. For counts two and four of the indictment, the maximum penalty is life imprisonment for use of a firearm during and in relation to the robberies.
The case is being investigated by the United States Postal Inspection Service. Assistant U.S. Attorney Marques Young 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.
Former Department of Children’s Services Employees Sentenced for Unlawfully Accessing Confidential InformationRead the Press Release
Memphis, TN – Two Memphis women who used to work for the Tennessee Department of Children’s Services (DCS) have been found guilty and sentenced for unlawfully accessing confidential information on the Department’s computers. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentences today.
According to information presented in court, on May 17, 2016, former DCS employee Rubbie King, 48, of Memphis, contacted a friend who still worked at the agency and caused the friend, Bernice Gunn-Davis, 58, to access the file of a minor child in the Department’s care. King’s daughter was involved with Marcus Ross, who faces charges of rape, aggravated statutory rape, aggravated child abuse, and sex trafficking in connection with the minor whose file was accessed. Neither King nor Gunn-Davis had authority to review the contents of the minor’s file. Ross’ case is pending in Shelby County Criminal Court.
King was convicted of conspiracy to access a protected computer without authorization and obtain information, a violation of Title 18, United States Code, Section 371. On March 17, 2017, the Honorable Judge Sheryl H. Lipman sentenced King to serve an eighteen-month term of supervised release, with the first three months on home confinement. This is a felony conviction.
Gunn-Davis was convicted of exceeding authorized access to a protected computer to obtain information, a misdemeanor violation of Title 18, United States Code, Section 1030 (a) (2) (c). On March 27, 2017, Judge Lipman sentenced Gunn-Davis to one year of probation. Gunn-Davis is no longer associated with DCS.
DCS is the state of Tennessee’s public child welfare agency. It investigates allegations of child abuse and neglect; administers the state’s foster care system; works to establish permanency for children that come into the Department’s care; and serves youth who have been adjudicated delinquent. DCS case files are designated confidential by state law. It is a state crime to disclose confidential information about children or families involved with DCS.
The case was investigated by the FBI cybercrime unit, with the assistance of the Department of Children’s Services.
Assistant U.S. Attorney Debra Ireland prosecuted this case on the government’s behalf.
Memphis Man Pleads Guilty to Obstructing the IRSRead the Press Release
Memphis, TN – A Memphis man has pleaded guilty to obstructing the Internal Revenue Service ("IRS"). Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to the indictment, 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 through 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.
This charge carries a penalty of up to 36 months in federal prison and a fine of $5,000.00. The sentencing hearing is set for July 1, 2017.
The case was investigated by the United States Internal Revenue Service. Assistant U.S. Attorney Damon Keith Griffin is prosecuting this case on the government’s behalf.
Memphis Man Indicted in Scheme to Defraud Financial InstitutionsRead the Press Release
Memphis, TN – A federal grand jury has indicted a Memphis man for committing bank fraud against financial institutions in the Memphis area. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, from August 2011 through February 2016, Talmadge Garner and unknown co-conspirators not charged in the indictment participated in a deceptive scheme to defraud Orion Federal Credit Union, SunTrust Bank and Regions Bank ("Banks"). The fraud consisted of 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 closed account checks totaling $110,831.95 were deposited into accounts at the Banks. Immediately after deposits were made in the Banks, withdrawals were made by Garner and others not named in the indictment. Garner would give co-conspirators some of the proceeds withdrawn from the Banks.
The Indictment records (31) counts of fraudulent transactions involving Garner and unknown co-conspirators during the five-year period. The maximum penalty for bank fraud is (30) years in prison and a $1,000,000 fine.
The case was investigated by the United States Secret Service. Assistant U.S. Attorney Damon Keith Griffin is prosecuting this case on the government’s behalf.
Memphis Man Indicted for Illegal Reentry into the United StatesRead the Press Release
Memphis, TN – A federal grand jury has indicted a Memphis man for illegal reentry into the United States. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.
Official immigration records of Dionico Salazar-Martinez, a/k/a "Dionicio Salazar-Martinez," a/k/a/ "Martinez Salazar," age 53 reflect that he has been found in the United States and returned or removed to Mexico on 15 prior occasions.
According to the indictment, on or about January 25, 2017, the defendant, an alien, was found in Shelby County, Tennessee, after having been denied admission, excluded, deported and removed from the United States and not having obtained the express consent of the Secretary of Homeland Security to reapply for admission into the United States, in violation of Title 8, United States Code, Section 1326(a) and (b) (1).
Immigration records reflect the following:
- April 23, 1998, the defendant was arrested by the U.S. Border Patrol near Uvalde, Texas. He was given a Voluntary Return to Mexico.
- April 27, 1998, the defendant was arrested by the U.S. Border Patrol near Brackettville, Texas. He was given a Voluntary Return to Mexico.
- May 30, 1998, the defendant was arrested by the U.S. Border Patrol near Brackettville, Texas. He was given a Voluntary Return to Mexico.
- June 26, 1998, the defendant was arrested by the U.S. Border Patrol near Uvalde, Texas. He was given a Voluntary Return to Mexico.
- August 5, 1998, the defendant was arrested by the U.S. Border Patrol near Brackettville, Texas. He was given a Voluntary Return to Mexico.
- August 28, 1998, the defendant was arrested by the U.S. Border Patrol near Uvalde, Texas. He was given a Voluntary Return to Mexico.
- September 1, 1998, the defendant was arrested by the U.S. Border Patrol near Uvalde, Texas. He was given a Voluntary Return to Mexico.
- September 16, 1998, the defendant was arrested by the U.S. Border Patrol near Brackettville, Texas. He was given a Voluntary Return to Mexico.
- October 21, 1998, the defendant was arrested by the U.S. Border Patrol near Uvalde, Texas. He was given a Voluntary Return to Mexico.
- October 24, 1998, the defendant was arrested by the U.S. Border Patrol near Brackettville, Texas. He was given a Voluntary Return to Mexico.
- October 29, 1998, the defendant was arrested by the U.S. Border Patrol near Uvalde, Texas. He was given a Voluntary Return to Mexico.
- December 27, 1998, the defendant was arrested by the U.S. Border Patrol near Brackettville, Texas. He was placed into removal proceedings and on May 29, 1999, the defendant was removed from the United States to Mexico at El Paso, Texas.
- August 8, 1999, the defendant was arrested by the U.S. Border Patrol near Eagle Pass, Texas. He was placed into removal proceedings and on February 4, 2000, the defendant was removed from the United States to Mexico at Laredo, Texas.
- October 2, 2002, the defendant was arrested by the Immigration and Naturalization Service in Memphis, Tennessee. He was placed into removal proceedings and on October 23, 2002, the defendant was removed from the United States to Mexico at Laredo, Texas.
- August 13, 2003, the defendant was arrested by Immigration and Customs Enforcement in Memphis, Tennessee. He was placed into removal proceedings and on March 2, 2004, the defendant was removed from the United States to Mexico at Hidalgo, Texas.
If convicted, Salazar-Martinez faces a maximum possible sentence of ten (10) years imprisonment, a fine of $250,000, a three-year term of supervised release, and a $100 mandatory special assessment.
The case is being investigated by the United States Department of Homeland Security – Immigration and Customs Enforcement. Assistant U.S. Attorney Stephen Hall 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.