Western District of Tennessee
Press releases recorded for this federal judicial district.
Defendant in Murder Case Pleads to Felony Firearm PossessionRead the Press Release
Memphis, TN – A defendant allegedly involved in the murder of 7-year-old Kirsten Williams has pled guilty in federal court to a separate charge of unlawfully possessing a firearm. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to information presented in court, Jordan Clayton, 22, of Memphis, unlawfully possessed a Glock .40 caliber pistol.
On April 14, 2015, officers with the Multi-Agency Gang Unit went to a tattoo parlor on North Highland to arrest Clayton on other charges. When officers entered the business, they saw the defendant drop a handgun in a filing cabinet. During a search of the tattoo parlor, officers recovered the Glock .40 caliber pistol from the filing cabinet where Clayton was seen dropping it.
On Friday, February 5, 2016, Clayton pled guilty to one count of felony firearm possession.
Clayton is scheduled to be sentenced by U.S. District Judge John T. Fowlkes Jr. on Thursday, May 5, 2016. He faces up to 10 years imprisonment and a fine of up to $250,000.
This case was investigated by the Project Safe Neighborhoods (PSN) Task Force, a collective comprised of personnel from the Memphis Police Department; Shelby County Sheriff’s Office; and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The PSN Task Force works in a unified effort against gun crime, targeting repeat offenders who continually plague the greater Shelby County area.
Assistant U.S. Attorneys Marques Young and Stephen Hall are prosecuting this case on the government’s behalf.
Multiple Defendants in Synthetic Marijuana, Bath Salts Distribution Ring SentencedRead the Press Release
Jackson, TN – Fourteen members of a drug ring responsible for manufacturing and distributing hundreds of thousands of dollars’ worth of synthetic cannibinoids and synthetic cathinones have been collectively sentenced to more than 290 months in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencings today.
The defendants and their respective sentences include:
- Saed Abdeljawwad: 24 months, 2 years supervised release
- Mohammed Sadek: 12 months, 2 years supervised release
- Ali Safa: 6 months, 6 months home detention, 2 years supervised release
- Mohammed Khalil: 60 months, 3 years supervised release
- Ehab "Mark" Rezk: 30 months, 3 years supervised release
- Hussein Salloukh: 48 months, 3 years supervised release
- Nazem Salloukh: 36 months, 3 years supervised release
- Ahmed "Eddie" Elsebae: 48 months, 3 years supervised release
- Akram Nagi: 6 months, 2 years supervised release
- Paula Neil Kirk: 2 years probation, 6 months home detention
- Irene Rosas-Montalvo: Time served, 12 months supervised release
- Deok Hee "Simon" Han: 27 months, 3 years supervised release
- Hani Tarhini: 2 years probation, 6 months home detention
- See Wan "Steven" Kang: 2 years probation, 6 months home detention
- Hassan "Sam" Safa: Fugitive
- Mahmoud "Steve" Safa: Fugitive
According to information presented in court, between 2011 and 2013, all of the defendants conspired to distribute large quantities of Schedule I and Analogue synthetic cannibinoids (marijuana simulates, aka "spice" or "K2") and synthetic cathinones (cocaine/methamphetamine simulates, aka "bath salts") throughout West Tennessee and other areas of the country.
Synthetic marijuana is made by mixing a raw Schedule 1 drug and analogue powder chemicals with surfactants, acetone, and glue, and spraying damiana, a dried vegetable matter, for a product which can be smoked. To manufacture bath salts, Schedule 1 drugs and Analogues are mixed and cut with adulterants, and packaged for snorting or ingesting.
Defendants involved with the drug ring either manufactured, distributed, or obtained units of drugs and/or wired currency and deposited proceeds into bank accounts to further the conspiracy. Some of the defendants worked as owners, managers, and retail clerks at Jackson area gas stations and convenience stores.
In February 2011, multiple packages containing synthetic cannibinoids and cathinones were intercepted by officers with the Jackson Metro Narcotics Unit. Testing revealed the substances were both Schedule I and Analogues of Schedule I substances. Subsequently, law enforcement discovered the same types of drugs were being sold at area gas stations and convenience stores. In November 2011, officers served a series of search warrants on local gas stations and convenience stores, many of which were owned by the defendants. Synthetic cannibinoids and cathinones were seized, as well as tens of thousands of dollars in currency. Amongst the substances being sold at the establishments were AM2201; JWH-018; JWH-081; Methylone; MDPV; UR-144; XLR11; 5-MeO-DALT; and 5-Fluoro-PB22.
In February 2012, law enforcement seized more synthetic cannibinoids and synthetic cathinones at gas stations and convenience stores in another round of search warrants. Law enforcement’s investigation discovered hundreds of thousands of these drugs were being ordered and sold by Hassan Safa and Ahmad Elsebae. The synthetic drugs were being shipped throughout the Western District of Tennessee and other states.
In summer 2012, packages were intercepted from the United States Postal Service and FedEx, all containing Schedule I drugs and Analogues. It was determined that Hassan Safa obtained the raw chemicals from China. The chemicals were reportedly being cooked or manufactured at office buildings Hassan Safa owned in Jackson. He supplied various stores with the drugs to sell.
The investigation revealed that each defendant was involved in the conspiracy with Safa. In 2013 and 2014, all of the above defendants were indicted for their roles in the conspiracy to distribute synthetic cannabinoids and synthetic cathinones, among other charges.
Over $1.4 million in assets have been forfeited as a result of the investigation, including residences, local convenience stores, a grocery store, and more than $150,000 in bank deposits. The forfeitures come from both Operation Desert Spice and a separate civil forfeiture case against assets owned by fugitive defendants Hassan Safa and Mahmoud Safa.
The investigation was conducted by the Tennessee Bureau of Investigation; Drug Enforcement Administration; Internal Revenue Service; Jackson-Metro Narcotics Unit; Jackson Police Department; Madison County Sheriff’s Office; and the Tennessee Highway Patrol.
Assistant U.S. Attorneys Matt Wilson and Chris Cotten prosecuted these cases on the government’s behalf.
U.S. Postal Service Employee Indicted for Assaulting SupervisorRead the Press Release
Memphis, TN – A United States Postal Service employee has been indicted for assaulting a colleague while at work. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, on January 23, 2016, Richard Martin, 59, of Memphis, knowingly and forcibly assaulted a U.S. Postal Service employee. The assault reportedly occurred while the defendant and the victim were at work.
On Tuesday, January 26, 2016, Martin was indicted on one count of assault on a federal officer or employee. If convicted, he faces up to 20 years imprisonment and a fine of up to $250,000.
This case is being investigated by the U.S. Postal Inspection Service.
Assistant U.S. Attorney Stephen Hall is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Two Men Sentenced for Defrauding Memphis VA Medical Center of $1 MillionRead the Press Release
Memphis, TN – Two men have been sentenced to prison for conspiring to execute a scheme that defrauded the Memphis VA Medical Center of $1 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencings today.
According to the indictment, from August 2007 to July 2013, Andre Reddix, 60, and Ronnie White, 61, both of Memphis, conspired to embezzle more than $1 million from the VA. The medical center provides health care services to veterans in western Tennessee, northern Mississippi, and northeastern Arkansas.
Reddix was an employee at the VA during the scheme’s duration, according to information presented in court. His duties included using a company-issued credit card to buy medical supplies for the VA.
In August 2007, Reddix concocted a scheme with White, which involved White establishing a medical supply company entitled White Pharmaceuticals. Following the company’s formation, Reddix got White Pharmaceuticals approved to serve as a vendor that provided medical supplies to the VA.
For nearly six years, Reddix created fraudulent purchase orders to White Pharmaceuticals for medical supplies that were never delivered to the VA. Subsequently, White prepared and sent the VA fraudulent invoices that corresponded with each of the fraudulent purchase orders.
Reddix used the company-issued credit card to fraudulently pay White Pharmaceuticals for the undelivered medical supplies. The defendants then divided the payments among themselves, using the funds for personal expenses.
Ultimately, more than 300 fraudulent transactions were made by the defendants. The VA was defrauded of more than $1 million during the scheme.
In September 2015, Reddix and White both pled guilty to conspiracy to defraud the VA of approximately $1 million.
On December 11, 2015, White was sentenced by U.S. District Judge Samuel H. Mays Jr. to serve 30 months imprisonment. He was also ordered to pay $1,137,694.14 in restitution.
On January 21, 2016, Reddix was sentenced by Judge Mays to serve 30 months. Reddix was also ordered to pay $1,137,694.14 in restitution.
This case was investigated by the U.S. Department of Veterans Affairs, Office of Inspector General.
This case was prosecuted by the U.S. Attorney’s Office.
Justice Department Reaches Settlement with Evolve Bank & Trust to Resolve Allegations of Discrimination Against Recipients of Disability IncomeRead the Press Release
Settlement Provides Compensation to Victims Identified by the Department of Justice and Establishes Fair Procedures for Treating Borrowers Who Receive Disability Income
The Justice Department announced today that Evolve Bank & Trust has agreed to maintain revised policies, conduct employee training and compensate victims to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of disability and receipt of public assistance in violation of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA). The FHA prohibits lenders from discriminating on the basis of disability, and the ECOA prohibits lenders from discriminating on the basis of receipt of public assistance.
The settlement, which is subject to court approval, was filed today in federal court in Memphis, Tennessee, where Evolve is headquartered. The terms of the settlement require Evolve to establish a settlement fund of $86,000 to compensate eligible mortgage loan applicants who were asked to provide a letter from their doctor to document their disability income. Under the settlement, Evolve will conduct training of its underwriters and loan officers and will monitor loan applications to insure that applicants with disabilities are not asked for a letter from a doctor.
“Loan applicants who rely on disability income should not be treated differently than other applicants,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This settlement will provide relief to victims of a discriminatory practice that illegally and unnecessarily burdens individuals with disabilities in violation the Fair Housing Act and the Equal Credit Opportunity Act.”
The lawsuit originated with a referral from the Board of Governors of the Federal Reserve System to the Civil Rights Division. Evolve is a member of the Federal Reserve System.
“Illegal discrimination on the basis of disability is unacceptable,” said Federal Reserve Governor Lael Brainard. “This settlement not only provides restitution for mortgage applicants that were harmed by the bank’s discriminatory practices, but ensures that the bank institutes new, fair policies and trains its staff to implement them.”
“Every individual is entitled to equal and fair treatment when applying for a loan,” said U.S. Attorney Edward L. Stanton III of the Western District of Tennessee. “This settlement underscores the Department of Justice’s unwavering commitment to holding financial institutions accountable when they engage in unlawful discriminatory practices.”
The Civil Rights Division, the Board of Governors of the Federal Reserve System and the U.S. Attorney’s Office of the Western District of Tennessee are members of the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information about the task force, please visit www.StopFraud.gov.
The department’s enforcement of fair lending laws is conducted by the Housing and Civil Enforcement Section’s Fair Lending Unit in the Civil Rights Division. Since the Fair Lending Unit was established in February 2010, it has filed or resolved 44 lending matters under the Fair Housing Act, ECOA and the Servicemembers Civil Relief Act. The settlements in these matters provide for a total of over $1.4 billion in monetary relief for impacted communities. The Attorney General’s annual reports to Congress on ECOA enforcement highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications.
A copy of the complaint, as well as additional information about fair lending enforcement by the Justice Department, can be obtained from the Justice Department’s website at www.justice.gov/fairhousing.
Evolve Bank & Trust Complaint
Evolve Bank & Trust Consent Order
Former Memphis Pastor Sentenced to 85 Months for Receiving Child PornographyRead the Press Release
Memphis, TN – A former Memphis pastor has been sentenced to 85 months for knowingly receiving sexual images of a minor. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to information presented in court, between March and April 2015, Demarcus Smith, 32, asked a teenage boy to send him sexually explicit images of himself via the Facebook Messenger app. Smith, a former pastor and minister, also had sexually explicit conversations with the victim through Facebook Messenger.
In August 2015, Smith was indicted on charges in relation to child pornography. He pled guilty to one count of receipt of child pornography in October 2015.
On Friday, January 15, 2016, Smith was sentenced by U.S. District Judge Sheryl H. Lipman to 85 months imprisonment.
The case was investigated by the Memphis Child Exploitation Task Force. The collective is comprised of the Federal Bureau of Investigation; Homeland Security Investigations; Shelby County Sheriff's Department; Memphis Police Department; U.S. Postal Investigation Service; U.S. Marshals Service; and the United States Secret Service.
Assistant U.S. Attorney Debra Ireland prosecuted this case on the government’s behalf.
Anyone who has information on the exploitation of minors is asked to contact the Memphis Child Exploitation Task Force at 901.747.4300.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the
Criminal Division's Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Man Who Pointed Assault Rifle at Detective Found Guilty in Federal CourtRead the Press Release
Memphis, TN – After a three-day trial, a man who pointed an assault rifle at police officers has been convicted by a federal jury of felony firearm possession. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty verdict today.
According to information presented in court, on September 4th, 2014, detectives with the Memphis Police Department’s Organized Crime Unit went to a house in South Memphis to conduct a knock and talk investigation regarding drug sales. When detectives knocked on the door and asked to speak with a resident about the complaint, 31-year-old Geremy Atkins, of Memphis, asked who was at the door. After detectives identified themselves, Atkins opened the door and pointed a black 5.56 caliber assault rifle at one of the detectives. The defendant subsequently closed the door and ran out the back door. Detectives were able to catch and detain Atkins by the rear fence of the house’s backyard. The assault rifle Atkins pointed at officers was found on the other side of the fence, a few feet from where Atkins was arrested. Law enforcement discovered that the rifle was fully loaded with 5.56 caliber rounds of ammunition.
On Wednesday, January 13, 2016, a federal jury found Atkins guilty of one count of being a felon in possession of a firearm.
Atkins is scheduled to be sentenced by U.S. District Judge John T. Fowlkes Jr. on Thursday, April 21, 2016. He faces up to 10 years imprisonment and a fine of up to $250,000 when sentenced.
This case was investigated by the Project Safe Neighborhoods (PSN) Task Force, a collective comprised of personnel from the Memphis Police Department, Shelby County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The PSN Task Force works in a unified effort against gun crime, targeting repeat offenders who continually plague the greater Shelby County area.
Special Assistant U.S. Attorney Hamilton Carriker and Assistant U.S. Attorney Elizabeth Rogers prosecuted this case on the government’s behalf.
Local Dermatologist, Cordova-based Medical Practice to Pay $450,000 for Overbilling MedicareRead the Press Release
Memphis, TN – A doctor and his Cordova-based medical practice will pay $450,000 to the government to resolve allegations that it billed Medicare for unnecessary dermatological surgical procedures and office visits. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the settlement today.
Under federal law, Medicare reimburses medical providers only for procedures that are medically necessary. The United States contends that from 2008 to 2011, Dr. George R. Woodbury and his medical practice, Rheumatology & Dermatology Associates, P.C., billed Medicare for multiple medically unnecessary procedures. Specifically, the complaint alleged that Woodbury billed for tissue rearrangement surgeries; excisions which were larger than actually performed; benign excisions as malignant; overstated repair or closure sizes; and for unnecessary office visits.
In October 2014, the allegations resolved in this settlement were first raised in a lawsuit filed against the defendant under provisions of the False Claims Act. The law provides the United States with a cause of action against any person who knowingly presents or causes to be presented a false or fraudulent claim for payment or approval. Damages for liability under the False Claims Act are up to triple the amount of actual damages suffered by the United States, plus a mandatory civil penalty of $5,500 to $11,000 for each claim.
"Billing Medicare for dermatological surgical procedures that are not necessary or appropriate contributes to the soaring costs of health care and harms patients," said U.S. Attorney Stanton. "Settlements like this protect public funds and safeguard the beneficiaries of federal health care programs."
The investigation was conducted by the United States Department of Health and Human Services – Office of the Inspector General, along with the Federal Bureau of Investigation.
Assistant U.S. Attorneys Stuart J. Canale and David Brackstone represented the United States in this matter.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Memphis Man Sentenced to 120 Months for Bank, Business RobberiesRead the Press Release
Memphis, TN – A Memphis man has been sentenced to 120 months for robbing a First Tennessee Bank and Family Dollar Store. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to court information, on March 30, 2014, Marchello Moore, 34, entered the Family Dollar on Knight Arnold Road and posed as a customer. Moore approached the counter and acted as if he was going to purchase an item. When the clerk opened the cash register, Moore pulled out a handgun. The clerk managed to run to the back of the store and press the panic button. Moore was able to take approximately $50 from the cash register. He subsequently fled the scene in a gold Dodge Durango.
On April 7, 2014, Moore robbed a First Tennessee Bank on Kirby Center Cove. According to the bank teller, Moore reportedly approached a bank teller’s station and presented a note that read, "I have a gun/Give me all your money/No dye pack." The bank teller complied with the demand and provided Moore with approximately $1,995 from the cash drawer. Moore then fled the scene in the same gold Dodge Durango.
On April 10, 2014, Memphis Police Department (MPD) officers conducted a traffic stop on the gold Dodge Durango operated by Moore and placed him in custody for the Family Dollar robbery. Subsequent to his arrest, an inventory of the vehicle resulted in the discovery of a Cobra .380-caliber pistol in an air filter underneath the hood. During his post-arrest statement, Moore admitted that he also robbed the First Tennessee Bank.
In September 2015, Moore pled guilty to one count of bank robbery, one count of committing a robbery that affected interstate commerce, and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence.
On Friday, January 8, 2016, U.S. District Judge Sheryl H. Lipman sentenced Moore to 120 months in federal prison.
This investigation was conducted by the Federal Bureau of Investigation’s (FBI) Safe Streets Task Force, a collective comprised of federal, state and local law enforcement personnel. The MPD investigated this case on behalf of the Safe Streets Task Force. Special Assistant U.S. Attorney Dean DeCandia prosecuted this case on the government’s behalf.
Shooter of Off-Duty MPD Officer Pleads to Felony Firearm PossessionRead the Press Release
Memphis, TN – A man responsible for fatally shooting an off-duty Memphis Police officer has pled guilty to felony possession of a firearm. The defendant’s wife has also pled guilty to disposing of a firearm to a felon. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty pleas today.
According to the indictment, Lorenzo Clark, 36, of Memphis, unlawfully possessed a Glock 9mm pistol on Sunday, October 11, 2015. The firearm was reportedly used by the defendant in the fatal shooting of 31-year-old Terence Olridge, an officer with the Memphis Police Department (MPD). Olridge was off duty at the time of the shooting.
According to the federal complaint, MPD officers responded to a shooting call at Lorenzo Clark’s Cordova residence. Officers later recovered the Glock 9mm alleged to be used in the shooting from the defendant. Lorenzo Clark admitted to possessing the Glock 9mm prior to and during the shooting with Olridge.
In October 2015, Lorenzo Clark was charged with felony firearm possession.
On Wednesday, January 6, 2016, Lorenzo Clark pled guilty to one count of felony firearm possession. He is scheduled to be sentenced by Judge Sheryl H. Lipman on April 15, 2016. He faces up to 10 years imprisonment and a fine of up to $250,000 when sentenced.
Lorenzo Clark’s wife, Natalie Clark, 37, of Memphis, was also charged in the October indictment for providing a firearm to Lorenzo Clark despite knowing he had been convicted of a felony.
On Wednesday, January 6, 2015, Natalie Clark pled guilty to one count of disposing of a firearm to a felon. She is scheduled to be sentenced by Judge Lipman on April 15, 2016. She faces up to 10 years imprisonment and a fine of up to $250,000 when sentenced.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), along with the MPD.
Assistant U.S. Attorney Marques Young is prosecuting this case on the government’s behalf.
In-home Caretaker Sentenced for Stealing More Than $80,000 from her Client’s EstateRead the Press Release
Memphis, TN – An in-home caretaker has been sentenced to 27 months for executing a scheme that defrauded a deceased woman’s estate of more than $80,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to the indictment, Shirley Hardaway, 60, of Memphis, was the owner and operator of Companion Plus, an in-home health and respite care provider to sick, disabled, and elderly people. Hardaway served as the daily in-home caretaker of the deceased victim for approximately four-to-five years, according to information presented in court. The home services ceased when the victim died in September 2009 at the age of 91. The deceased victim left behind more than $80,000 in two investment accounts at Franklin Templeton Investments, an investment managing company headquartered in California.
Nearly two years after the victim’s death, in June 2011, Hardaway mailed fraudulent change of address requests to Franklin Templeton on the decedent’s investment accounts, changing the address used for future correspondence between the parties to Hardaway’s address.
Hardaway and a co-conspirator then opened a fraudulent bank account online in the decedent’s name at Bank of America. The victim’s name, social security account number, and address were used to open the account.
After the Bank of America account was activated, Hardaway and her co-conspirator mailed several fraudulent documents to Franklin Templeton in the decedent’s name requesting that the company liquidate the victim’s two investment accounts and transfer the money within them to the fraudulently opened bank account. Upon receiving the request to liquidate both of the deceased victim’s accounts, Franklin Templeton electronically transferred more than $80,000 to the bank account. Hardaway then transferred the money to her personal Bank of America savings account and withdrew it all via cashier’s check.
On Thursday, October 8th, 2015, Hardaway pled guilty to one count of bank fraud and one count of conspiracy to commit mail fraud.
On Wednesday, January 6, 2016, Judge Jon Phipps McCalla sentenced Hardaway to 27 months in federal prison. She has also been ordered to pay $124,630.54 in restitution. In addition to the approximate $80,000 Hardaway stole from the victim’s investment accounts, she stole more than $40,000 in social security checks and pension dividend checks.
The case was investigated by the United States Secret Service.
Assistant U.S. Attorney Leetra Harris prosecuted this case on the government’s behalf.
South Carolina Man Indicted for Impersonating FBI Officer in West TNRead the Press Release
Jackson, TN – A South Carolina man who impersonated an FBI agent and unlawfully possessed a firearm at a hotel in West Tennessee has been indicted. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, on November 23, 2015, Steven Darnell Lancaster, 45, of Gaston, South Carolina, falsely claimed to be a Special Agent with the Federal Bureau of Investigation (FBI) while at a hotel in Jackson, Tennessee. Lancaster, a felon, allegedly had a Glock .40 caliber pistol and false FBI credentials in his possession during the time frame he committed the impersonation.
Lancaster has been charged with one count of impersonating a federal officer and one count of being a felon in possession of a firearm.
This case is being investigated by the FBI and Jackson Police Department.
Assistant U.S. Attorney Victor L. Ivy is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
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Millington Man Sentenced to 25 Years for Running Teen Sex Trafficking RingRead the Press Release
Memphis, TN – A 51-year-old Millington man who trafficked multiple underage teens for sex has been sentenced to serve a quarter-century in prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
"Trafficking the bodies of minors for financial gain is reprehensible and will not be tolerated," said U.S. Attorney Stanton. "Michael Lilley found this out the hard way. His deplorable actions have earned him a quarter-century sentence in federal prison with no chance of parole."
According to information presented in court, from May to September 2013, Lilley had four minors engage in commercial sex acts out of his Millington home, backhouse, van, and other locations. The victims were 15-, 16-, and 17-year-old students, some of whom attended Millington-area high schools.
Lilley used text messages and explicit photos of the teens to market them to various males willing to pay for sex. In addition to trafficking the victims out of his residence and vehicle, Lilley transported the juveniles to local restaurants and homes where they would engage in commercial sex acts. Lilley collected the proceeds provided from patrons, splitting them with the victims.
According to court information, the teens were trafficked for as little as $60 per sexual endeavor. Text messages disclosing conversations between Lilley and clients regarding price ranges were displayed in court.
Physical evidence presented during Lilley’s trial in September 2015 included images of both used and unused condoms and condom wrappers throughout his home and vehicle. Trafficking victims testified, recollecting their experiences working for Lilley while underage teens.
On September 22, 2015, a jury found Lilley guilty of four counts of sex trafficking of a minor; one count of conspiracy to commit sex trafficking; three counts of sexually exploiting a minor; one count of attempting to sexually exploit a minor; three counts of distributing visual depictions of a minor engaged in sexually explicit conduct; and one count of possessing at least one digital storage device containing visual depictions of minors engaged in sexually explicit conduct.
On Thursday, December 17, 2015, Lilley was sentenced by U.S. District Judge John T. Fowlkes Jr. to 25 years imprisonment. He will also be required to serve 20 years of supervised release.
This case was investigated by the Federal Bureau of Investigation’s Child Exploitation Unit.
First Assistant U.S. Attorney Larry Laurenzi and Assistant U.S. Attorney Debra Ireland prosecuted this case on the government’s behalf.
Memphis Man Sentenced to 85 Months for Mortgage Fraud, Identity TheftRead the Press Release
Memphis, TN – A Memphis man has been sentenced to more than seven years in federal prison as a result of his conviction in two separate cases involving mortgage fraud and identity theft. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to the indictment, Marcus Jerome Payne, 46, of Memphis, and a co-conspirator fraudulently obtained two mortgage loans totaling approximately $530,000 between December 2008 and March 2009. Payne and his co-conspirator were able to apply for and obtain the mortgage loans by unlawfully using the name, social security number and other personal identifying information of another person.
Payne and his co-conspirator fraudulently obtained a mortgage loan of more than $265,000 from Fifth Third Bank. They obtained another loan of more than $264,000 from CitiBank. The loans were secured to buy two residential properties located in the city’s Central Avenue area.
In July 2015, Payne pled guilty to one count of conspiracy to commit mail, wire and bank fraud for his role in the mortgage loan fraud scheme.
Payne’s co-conspirator, Booker Smith, 32, of Memphis, pled guilty to one count of bank fraud in October 2015. He’s scheduled to be sentenced by U.S. District Judge Samuel H. Mays on Friday, January 8, 2016. He faces up to 30 years and a fine of up to $1 million when sentenced. He will also be ordered to pay restitution in the total amount of $265,155.22.
Payne also pled to unrelated charges of wire fraud and identity theft which were outlined in a criminal information filed by the U.S. Attorney’s Office. The wire fraud charge alleged that Payne fraudulently obtained two other mortgage loans for residences in Shelby County. The loans totaled approximately $661,200 between January and March 2006.
The criminal information also alleged that Payne fraudulently used the name of another individual to obtain an Arkansas Driver’s License, a mortgage loan origination agreement, and credit between June 2010 and July 2015.
On Tuesday, December 15, 2015, Payne was sentenced by Judge Mays to serve 85 months. He was also ordered to pay restitution in the total amount of $265,289.40 and forfeit $521,000.
This case was investigated by the Federal Bureau of Investigation; Internal Revenue Service - Criminal Investigation Division; U.S. Postal Inspection Service; and the U.S. Department of Housing and Urban Development Office of Inspector General.
Assistant U.S. Attorney Carroll L. Andre III prosecuted this case on the government’s behalf.
Tennessee Probation Officer Indicted for Tax Fraud SchemeRead the Press Release
Memphis, TN – A State of Tennessee probation officer has been indicted on identity theft and wire fraud charges in relation to a tax fraud scheme that defrauded the government of more than $50,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
As the indictment alleges, between 2011 and 2012, LaShear Poole, 41, of Memphis, operated Five Star Tax Professionals, a tax preparation business. Poole, also a probation officer, used the business’ Professional Tax Identification Number (PTIN) and Electronic Filing Identification Number (EFIN) to file federal income tax returns.
Poole executed her scheme by unlawfully obtaining and possessing personal identifying information of U.S. taxpayers, which she used to electronically file federal income tax returns in their names. According to the indictment, Poole fraudulently prepared the tax returns of at least 13 individuals, making material false and fraudulent misrepresentations concerning the taxpayers’ employer and business information, income, and eligibility for education credits. The fraudulent tax returns were filed with the U.S. Internal Revenue Service (IRS) by means of wire communication. As a result of the scheme, Poole obtained more than $50,000 in tax refunds.
On Tuesday, December 15, 2015, Poole was indicted on 13 counts of wire fraud. She faces up to 20 years imprisonment and a fine of up to $1 million for each count.
Poole was also indicted on 13 counts of aggravated identity theft. She faces a mandatory sentence of two years (which would be served consecutive to any other term of imprisonment) and a fine of up to $250,000 for each count.
This case is being investigated by IRS-Criminal Investigation.
Assistant U.S. Attorney Christopher E. Cotten is representing the government in this case.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Former Corrections Officer Indicted for Attempting to Smuggle MarijuanaRead the Press Release
Memphis, TN – A former corrections officer for a federal correctional institution in Arkansas has been indicted for attempting to smuggle contraband into the facility. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
In September 2015, John Brooks, 28, of Jonesboro, Arkansas, was employed as a corrections officer at Federal Correctional Complex (FCC) Forrest City, Arkansas when he accepted money in exchange for agreeing to smuggle marijuana into the facility and to inmates.
On Tuesday, December 15, 2015, Brooks was indicted federally on one count of accepting money in exchange for agreeing to smuggle marijuana into the institution in violation of his official duties. Brooks faces up to 15 years imprisonment if convicted of the charge.
Brooks was also indicted on one count of attempting to provide marijuana to an inmate. He faces up to five years if convicted of the charge.
The defendant faces an individual fine of up to $250,000 for each count.
This case is being investigated by the Federal Bureau of Investigation (FBI).
Assistant U.S. Attorney David Pritchard is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Man Who Fatally Shot MPD Officer Indicted on Federal ChargesRead the Press Release
Memphis, TN – A man who fatally shot Memphis Police Department (MPD) Officer Sean Bolton has been indicted federally on charges of armed carjacking and felony possession of ammunition. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to multiple reports, on August 1, 2015, Tremaine Wilbourn, 30, of Memphis, was in the passenger seat of a car parked on a street in East Memphis when Bolton approached the vehicle. Bolton attempted to detain Wilbourn before the defendant pulled a 9mm pistol and shot Bolton several times. The defendant is charged with unlawfully possessing 10 rounds of 9mm ammunition in connection with this shooting.
According to the indictment, on the same day of the shooting, Wilbourn used a firearm to carjack a man of a 2002 Honda Accord.
On Tuesday, December 15, 2015, Wilbourn was indicted federally on one count of carjacking; one count of possessing a firearm during and in relation to the carjacking; and one count of felony possession of ammunition.
Wilbourn faces up to 15 years imprisonment if convicted of the first count. The defendant faces up to life if convicted of the second count. And Wilbourn faces up to 10 years if convicted of the third count.
The defendant faces an individual fine of up to $250,000 on each count.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is investigating this case in conjunction with the MPD.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U.S. Attorney Announces Department of Justice is Reviewing Darrius Stewart ShootingRead the Press Release
Memphis, TN – In light of multiple inquiries regarding the July shooting of teenager Darrius Stewart by a Memphis police officer, U.S. Attorney Edward L. Stanton III has announced that the Department of Justice (DOJ), in tandem with its Civil Rights Division, the U.S. Attorney’s Office, and the Federal Bureau of Investigation is conducting a comprehensive review of the matter.
In July, Stewart’s shooting was referred by local authorities to the Tennessee Bureau of Investigation (TBI). The TBI subsequently prepared a report for consideration by the Shelby County District Attorney General’s Office. In early November, a state grand jury declined to indict Memphis police officer Connor Schilling on charges related to the death of Stewart.
The DOJ has been conducting an independent, comprehensive, and careful review of the evidence collected related to the shooting of Stewart. A team of agents, along with experienced prosecutors from the U.S. Attorney’s Office and the DOJ’s Civil Rights Division in Washington, D.C., are conducting the review which encompasses all of the circumstances surrounding Stewart’s death.
At this time, the DOJ’s review is ongoing. The U.S. Attorney’s Office cannot disclose any information about the Department’s internal deliberations.
The U.S. Attorney’s Office and its federal, state and local partners take very seriously all allegations of civil rights violations by law enforcement officers. The Department will continue to devote the necessary resources to examine any such allegations and will aggressively prosecute criminal civil rights violations whenever there is sufficient evidence to do so.
Federal Jury Convicts Man in Officer-Involved ShootingRead the Press Release
Memphis, TN – A Memphis man who robbed a man at gunpoint and pointed his firearm at police officers has been convicted by a federal jury of felony firearm possession. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty verdict today.
According to information presented in court, Christopher Travis, 24, of Memphis, and an unknown accomplice robbed a man at gunpoint in the city’s Catalina Street area near Sherwood Middle School on September 10, 2014. Travis and his accomplice reportedly assaulted the victim and stripped him of his clothing. Memphis Police Department (MPD) personnel were notified of the robbery by an onlooker. After arriving on the scene, officers saw Travis with the victim’s clothes. Upon seeing the officers, Travis fled on foot and retrieved a handgun from his pocket; MPD officers chased after him. After unsuccessfully jumping a fence, the defendant turned around and pointed his firearm at officers. An MPD officer subsequently shot at the defendant but didn’t strike him. Travis then managed to run through an opening in the fence and evade the officers.
According to court information, police set up a perimeter and located the defendant hiding in an open crawl space under a house located on Vanuys Road. After several verbal requests from officers, the defendant surrendered to law enforcement. The firearm that was pointed at the officer was located by a K-9 officer and his dog in a backyard adjacent to the house where Travis was found.
On Tuesday, December 8, 2015, a jury convicted Travis on one count of felony possession of a firearm.
Travis faces up to 10 years in federal prison and a fine of up to $250,000 when sentenced.
Travis is scheduled to be sentenced by U.S. District Judge Sheryl H. Lipman on Friday, March 11, 2016.
The case was investigated by the MPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
This case was part of the Project Safe Neighborhoods (PSN) initiative, which encourages federal, state, and local agencies to cooperate in an unified effort against gun crime, targeting repeat offenders who continually plague their communities.
Assistant U.S. Attorneys Marques Young and Elizabeth Rogers prosecuted this case on the government’s behalf.
Collierville Man Pleads Guilty in Two Separate Fraud Schemes Totaling More Than $2 MillionRead the Press Release
Memphis, TN – A Collierville man has pled guilty to executing two separate fraud schemes that defrauded victims of more than $2 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to the charging document, between December 2012 and October 2014, Anthony Davis, 44, of Collierville, owned ADLM Automotive, Inc., a Mississippi-based wholesale automobile dealership that conducted business in Memphis. He used the company to promote a purported investment opportunity that ultimately defrauded investors of nearly $1.8 million.
During the aforementioned time period, Davis fraudulently told victims that they could purchase a Retail Installment Contract and Security Agreement (RICSA) from him through ADLM Automotive. He also told them that when he sold a vehicle to a customer and the customer financed any part of the purchase price, the customer would sign a RICSA, and an application for a title with the appropriate state (e.g., Tennessee, Arkansas, or Mississippi) agency responsible for issuing vehicle titles. Davis represented to the victims that they would have a perfected security interest in the vehicle which was the subject of the RICSA because their security interest would be noted on the Certificates of Title.
Davis told victims that monthly payments on the RICSAs would be collected by a Georgia-based company known as Vehicle Acceptance Corporation (VAC), and that each customer had signed an Automated Clearing House (ACH) payment form so that monthly payments would be automatically deducted from their bank account. Davis further represented that ADLM Automotive maintained an account with VAC and would direct VAC to route customers’ payments to the victims’ bank accounts. More so, Davis told the victims that if a customer defaulted and failed to make payments under the terms of the RICSA, ADLM Automotive would repurchase the non-performing loan, or give the victim the option of replacing the non-performing loan with a performing loan of equal or greater value.
Due to his fraudulent representations, Davis received investments from multiple victims. All along, Davis knew the RICSAs, customers, vehicles and titles did not exist.
According to the charging document, Davis executed a separate fraud scheme between January 2014 and August 2014. This scheme involved Davis searching for and obtaining Social Security Numbers to create fraudulent credit profiles. The credit profiles and other false and fraudulent identifying information were used to obtain credit to finance the purchase of vehicles. As a result of the scheme, Davis and co-conspirators fraudulently obtained and attempted to obtain credit to finance the purchase of approximately 16 vehicles. The losses associated with this scheme were more than $457,000.
On Tuesday, December 8, 2015, Davis pled guilty to two counts of wire fraud before U.S. District Judge John T. Fowlkes Jr.
For each count, Davis faces up to 20 years imprisonment and a fine of up to $250,000. Davis will also be ordered to pay restitution in the total amount of $1,763.829.50 to those victimized in the first scheme. He will be ordered to pay restitution in the total amount of $457,507.06 to those victimized in the second scheme.
Davis is scheduled to be sentenced by Judge Fowlkes on March 3rd, 2016.
The case was investigated by the U.S. Postal Inspection Service, U.S. Marshal’s Service, and the Social Security Administration – Office of Inspector General.
Assistant U.S. Attorney Carroll L. Andre III prosecuted this case on the government’s behalf.
Two Major Dyersburg Crystal Meth Distributors SentencedRead the Press Release
Jackson, TN – Two leaders of a lucrative methamphetamine distribution ring in West Tennessee have been collectively sentenced to more than 270 months in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencings today.
"The production, distribution and ingestion of methamphetamine remain an issue that is ravaging communities in West Tennessee and throughout the nation," said U.S. Attorney Edward L. Stanton III. "Sentences like these two serve as strong reminders that law enforcement is committed to ridding our district of this insidious drug."
Steven Isbell, Chief of Dyersburg Police Department, said of the case, "This is an example of what good teamwork can do. This case was initiated by our patrol level response. Officers referred the beginning information to the Dyersburg Police Department Street Crimes Unit, who in turn got DEA and TBI involved in the investigation. The end result is that 15 people have now been indicted federally, and these two sentences alone have gotten two major ice distributors off our streets."
Dyer County Sheriff Jeff Box stated, "I sincerely appreciate the U.S. Attorney’s Office working with all the agencies involved to insure these defendants received appropriate punishment for the crimes they committed. Our local officers worked with DEA and TBI on this investigation, which has lasted over 1 ½ years. Everybody's hard work resulted in numerous federal indictments and has helped us eliminate a high purity ice distribution ring in the Dyer County area."
According to information presented in court, Miracle Pounds, 37, and Robert Troy Anderson, 49, both of Dyersburg, TN, spearheaded an organization responsible for distributing large quantities of meth and crystal meth, also known as "ice." Meth with greater than 80 percent purity classifies as ice and has stricter punishment levels under the United States Sentencing Guidelines. From January 2014 to December 2014, the two defendants, along with several co-conspirators, unlawfully distributed various quantities of highly pure meth throughout West Tennessee.
In January 2014, Operation Ice Breaker was initiated by the Drug Enforcement Administration (DEA) in collaboration with the Tennessee Bureau of Investigation (TBI), Dyersburg Police Department, and Dyer County Sheriff’s Office. The operation targeted several major ice distributors in the Dyersburg area — Pounds and Anderson being two of the operation’s main targets. Several state search warrants were executed on co-conspirators' homes during the investigation. And numerous controlled purchases were conducted where ice was sold by conspirators involved in the drug trafficking organization.
According to court information, Pounds and Anderson sold ice to undercover operatives. They also had other individuals selling ice for them. The two defendants, as well as other co-conspirators, transported meth from Arkansas to West Tennessee on various occasions for unlawful distribution. The majority of the meth recovered during Operation Ice Breaker’s duration was greater than 95 percent pure, classifying it as ice.
Both Pounds and Anderson pled guilty to one count of conspiracy to distribute and possess with intent to distribute actual methamphetamine.
On November 24th, 2015, Chief Judge J. Daniel Breen sentenced Pounds to serve 121 months in prison.
On December 4th, 2015, Judge Breen sentenced Anderson to serve 151 months in prison.
This case was investigated by the DEA, TBI, Dyersburg Police Department, and Dyer County Sheriff’s Office.
Assistant U.S. Attorney Beth Boswell prosecuted this case on the government’s behalf.
Two Cousins Collectively Sentenced to More Than 300 Months for Family Dollar RobberyRead the Press Release
Memphis, TN – Two cousins have been collectively sentenced to more than 300 months in federal prison for armed robbery of a Family Dollar Store in Cordova. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencings today.
According to information presented in court, on April 24, 2014, Cortez Strickland, 27, and his cousin, Corney Sanders, 28, both of Memphis, robbed a Family Dollar Store on North Germantown Parkway with a .45 caliber pistol. The defendants entered the store together; Strickland was armed with the handgun. Strickland reportedly pointed the gun at a store clerk, while Sanders made threats and demanded money from the safe and cash register. After placing money from the register in a bag, the two defendants fled the scene on foot.
Law enforcement officials were notified of the robbery and went to the scene. Witnesses told the officers that they recognized the defendants. Officers were able to determine the perpetrators’ identities and located them at a home near the Family Dollar. Officers also recovered proceeds from the robbery and the handgun used in the crime.
Both defendants pled guilty to one count of robbery affecting interstate commerce and one count of use of a firearm during a crime of violence.
On October 20, 2015, Sanders was sentenced by U.S. District Judge Sheryl H. Lipman to serve 105 months in federal prison.
On December 2, 2015, Judge Lipman sentenced Strickland to serve 212 months in federal prison.
This investigation was conducted by the Federal Bureau of Investigation’s (FBI) Safe Streets Task Force, a collective comprised of federal, state, and local law enforcement personnel. The Memphis Police Department investigated this case on behalf of the Safe Streets Task Force.
Assistant U.S. Attorney Stephen Hall prosecuted this case on the government’s behalf.
Memphis Woman Sentenced to 42 Months for Defrauding IRS of More Than $100,000Read the Press Release
Memphis, TN – A 33-year-old Memphis woman has been sentenced to 42 months in federal prison for theft of government funds and aggravated identity theft. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to the facts presented in the charging document and revealed during the sentencing, between January 26, 2012 and July 17, 2012, Felechia Williams participated in a scheme to obtain payment of fraudulent federal tax refunds from the Internal Revenue Service (IRS) by filing false claims using the identities of various individuals without lawful authority. The stolen funds were routed to bank accounts controlled by Williams and others. As a result of the scheme, Williams and her two co-conspirators, Sharonda Carroll, 39, and Priscilla Rayford, 47, both of Memphis, received more than $100,000 in false federal income tax refunds.
In August 2015, Williams pled guilty to theft of government funds and aggravated identity theft.
On Thursday, November 19, 2015, Williams was sentenced by U.S. District Judge Sheryl H. Lipman to 42 months in prison. Williams was also ordered to pay restitution of $108,471.66 to the IRS.
Carroll and Rayford have also entered guilty pleas. Carroll is scheduled to be sentenced on Tuesday, November 24, 2015. Rayford is scheduled to be sentenced on Thursday, December 3, 2015.
This investigation was conducted by IRS-Criminal Investigation.
Assistant U.S. Attorney Stephen Hall prosecuted the case on the government’s behalf.
Former Carroll County, Tennessee, Sheriff’s Office Lieutenant Pleads Guilty to Using Taser on Restrained Pre-Trial DetaineeRead the Press Release
A former lieutenant with the Carroll County, Tennessee, Sheriff’s Office has pleaded guilty to a civil rights violation for using a taser on a restrained pre-trial detainee, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division, and U.S. Attorney Edward L. Stanton III of the Western District of Tennessee.
Jeanette Sue Barnes, 48, pleaded guilty in federal court in Jackson, Tennessee, to one count of deprivation of rights under color of law. During the plea hearing, Barnes admitted that on March 22, 2015, she used her taser to drive-stun D.D.P., a pre-trial detainee, for 12 seconds, even though he was secured in a restraint chair and posed no threat to her or other officers. As a result of the assault, D.D.P. suffered pain and burns to his skin.
Barnes will be sentenced on Feb. 18, 2016, and faces a maximum sentence of 10 years in prison.
“The defendant abused the trust given to her as a law enforcement officer by needlessly inflicting pain on a restrained individual,” said Principal Deputy Assistant Attorney General Gupta. “The Justice Department will vigorously prosecute those who violate the civil rights laws to ensure that the rights of all individuals, including those in custody, are protected.”
“No one is above the law, especially those who have taken an oath to uphold the law,” said U.S. Attorney Stanton III. “Ensuring that law enforcement officers do not victimize the very citizens they are sworn to protect remains a top priority of this office.”
The FBI and Tennessee Bureau of Investigations investigated this case. The case is being prosecuted by Assistant U.S. Attorney Mark Erskine of the Western District of Tennessee and Trial Attorney Jared Fishman of the Civil Rights Division.
Barnes Plea Agreement
Former Carroll County, Tennessee, Sheriff's Office Lieutenant Pleads Guilty to Using Taser on Restrained Pre-Trial DetaineeRead the Press Release
WASHINGTON – A former lieutenant with the Carroll County, Tennessee, Sheriff’s Office has pleaded guilty to a civil rights violation for using a taser on a restrained pre-trial detainee, announced U.S. Attorney Edward L. Stanton III of the Western District of Tennessee, and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division.
Jeanette Sue Barnes, 48, pleaded guilty in federal court in Jackson, Tennessee, to one count of deprivation of rights under color of law. During the plea hearing, Barnes admitted that on March 22, 2015, she used her taser to drive-stun D.D.P., a pre-trial detainee, for 12 seconds, even though he was secured in a restraint chair and posed no threat to her or other officers. As a result of the assault, D.D.P. suffered pain and burns to his skin.
Barnes will be sentenced on February 18, 2016, and faces a maximum sentence of 10 years in prison.
"No one is above the law, especially those who have taken an oath to uphold the law," said U.S. Attorney Stanton III. "Ensuring that law enforcement officers do not victimize the very citizens they are sworn to protect remains a top priority of this office."
"The defendant abused the trust given to her as a law enforcement officer by needlessly inflicting pain on a restrained individual," said Principal Deputy Assistant Attorney General Gupta. "The Justice Department will vigorously prosecute those who violate the civil rights laws to ensure that the rights of all individuals, including those in custody, are protected."
The FBI and Tennessee Bureau of Investigations investigated this case. The case is being prosecuted by Assistant U.S. Attorney Mark Erskine of the Western District of Tennessee and Trial Attorney Jared Fishman of the Civil Rights Division.
Jury Finds Bloods Gang Member Guilty of Business Robberies, Weapons ChargesRead the Press Release
Memphis, TN – After a four-day trial, a federal jury found 20-year-old Khalil Davis guilty of two business robberies as well as brandishing and discharging a firearm in relation to a crime of violence. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty verdict today.
According to evidence presented in court, in the early morning hours of January 26, 2014, 20-year-old Khalil Davis, a member of the Bloods street gang, entered a Circle K convenience store on Poplar Avenue masked in a bandana and armed with a firearm. Davis allegedly pointed the gun at the store clerk’s face and took money from both the cash register and safe. He then placed the gun to the female clerk’s head and forced her to perform oral sex on him before fleeing the scene.
On the same day, less than an hour later, Davis, along with a co-conspirator, 32-year-old Antonio Griffin, entered the Marathon Gas Station on Poplar Avenue. After Griffin approached the counter to make a purchase, Davis ran behind the counter and put a gun to the store clerk’s head. A struggle ensued between Davis and the clerk while Griffin grabbed money out of the cash register and fled the store. Davis was able to eventually release himself with the gun. As he exited the store, Davis fired one shot at the clerk.
In July 2015, Davis’ co-conspirator, Griffin, pled guilty to one count of committing a robbery affecting interstate commerce and one count of brandishing and discharging a firearm in relation to a crime of violence. He’s scheduled to be sentenced on Friday, November 20th before Judge Samuel H. Mays.
On Friday, November 13, 2015, a jury convicted Davis on two counts of committing a robbery affecting interstate commerce and two counts of brandishing and discharging a firearm in relation to a crime of violence.
Davis faces up to 20 years imprisonment on each robbery count. He faces a mandatory minimum sentence of 35 years on each weapon count.
Davis is scheduled to be sentenced by Judge Mays on Thursday, February 25, 2016.
The case was investigated by Safe Streets Task Force and the Memphis Police Department.
The case was prosecuted by Assistant U.S. Attorneys Samuel Stringfellow and Kevin Whitmore.
Two Plead Guilty in Lucrative Kickback and Medicare Fraud SchemeRead the Press Release
Jackson, TN – A married couple has pled guilty to partaking in a scheme to defraud Medicare of more than $400,000 by making fraudulent medical equipment orders and paying illegal kickbacks. Four defendants were previously indicted in the scheme — three in February 2015 and one in October 2015. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty pleas today.
According to evidence presented in court, Dennis Sensing, 62, and Brenda Sensing, 45, both of New Albany, Mississippi partook in a lucrative health care and kickback fraud scheme between 2011 and 2013. The conspiracy also involved another married couple, Sandra and Calvin Bailey, as well as their son, Bryan Bailey, and accomplice, Cindy Mallard.
According to the charging documents, the Sensings operated the Adult and Children Medical Clinic in Guntown, Mississippi while also working as salespersons for Jaspan Medical Systems, a durable medical equipment company with an office in Jackson, Tennessee. Although Brenda Sensing was listed as a Jaspan employee paid via sales commissions, the commissions paid to her were actually for sales by Dennis Sensing. Pay was arranged to go to Brenda Sensing to avoid tax obligations incurred by her husband.
In their pleas, the Sensings admitted to paying illegal referral fees to Guntown, Mississippi residents, labeled "runners," to identify Medicare cardholders. Dennis Sensing would then market power wheelchairs and back braces to the cardholders. The Sensings also admitted to forging medical records and signatures of a nurse practitioner on medical records to create the appearance that cardholders had been evaluated by a medical provider for medical equipment when, in fact, no provider evaluated the cardholder. Some of the cardholders had no need for the medical equipment.
Nevertheless, the Sensings sent the forged records to Jaspan, which later used the records to obtain payments from Medicare for the equipment.
In February 2015, Calvin Bailey, Sandra Bailey, and Mallard were indicted for conspiracy to commit health care fraud and to pay illegal kickbacks in connection with health care services. Sandra Bailey was also indicted on multiple counts of health care fraud and paying illegal kickbacks to health care providers and patient-referral sources.
In October 2015, the indictment was superseded to add the Baileys’ son, Bryan Bailey, as a fourth defendant, and name the Sensings as persons involved in the conspiracy. Bryan Bailey was indicted for conspiracy to commit health care fraud and to pay illegal kickbacks in connection with health care services. He was also charged with wire fraud.
According to plea agreements entered by the Sensings, medical equipment orders resulting from illegal kickbacks and fraud made by the Sensings resulted in payments by Medicare in an amount between $400,000 and $1,000,000.
On Thursday, the Sensings individually pled guilty before Chief Judge J. Daniel Breen to one count of conspiracy to commit health care fraud and pay illegal kickbacks.
The defendants face individual sentences of up to five years imprisonment and a fine of up to $250,000.
Both defendants are scheduled to be sentenced on February 11th at 10 a.m. before Chief Judge Breen.
The case is being investigated by the Department of Health and Human Services - Office of the Inspector General, Federal Bureau of Investigation, and Tennessee Bureau of Investigation.
The case is being prosecuted by Assistant U.S. Attorney John Fabian on the government’s behalf.
Alleged Current Leader of FAM Mob Convicted by Federal JuryRead the Press Release
Memphis, TN – After a three day trial, the alleged current head governor of FAM Mob, a violent street gang based throughout North Memphis and Shelby County, was found guilty of felony firearm possession by a federal jury. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty verdict today.
According to the indictment, 28-year-old Jarvis Lewis, aka Jabo, of Memphis, unlawfully possessed a Jimenez Arms 9mm pistol. According to information presented in court, on October 27, 2014, Memphis Police officers responded to shots fired at the Ridgecrest Apartments Complex. The complex is allegedly used as the headquarters of FAM Mob, a violent street gang prevalent in Frayser, Northhaven, Raleigh and Millington.
Upon arriving on the scene, officers learned that two men with guns — one of them being Lewis — entered a unit in the apartment complex, according to information presented in court. Subsequent to locating the unit, officers asked for the defendants to leave the residence. After the defendants refused to comply, law enforcement gained entry into the apartment. Lewis and his co-defendant were located in the apartment’s master bedroom. A loaded 9mm pistol, partially sticking out of a bag of sugar, was also located by law enforcement while searching the apartment, according to court information.
FAM Mob’s hierarchy allegedly consists of a head governor, governors, CEOs, big "homies" and little "homies." Lewis allegedly became the head of FAM Mob after its former head governor, James McCracken, was indicted federally in November 2014 for violating the Hobbs Act. The Hobbs Act makes it a federal crime to commit a robbery that interferes with interstate commerce. In July 2011, McCracken and other FAM Mob members allegedly robbed a drug dealer who was trafficking narcotics manufactured outside of the district.
On Wednesday, November 4, 2015, a federal jury convicted Lewis of one count of felony possession of a firearm.
Lewis is scheduled to be sentenced by Judge Sheryl H. Lipman on February 5, 2016. He faces up to 10 years imprisonment and a fine of up to $250,000.
The case was investigated by the Project Safe Neighborhoods Task Force, which is comprised of representatives from the Memphis Police Department, Shelby County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorneys Kevin Whitmore and Elizabeth Rogers prosecuted the case on the government’s behalf.
Mastermind of $400,000 Federal Benefit Fraud Scheme SentencedRead the Press Release
Memphis, TN – The main conspirator in a lucrative federal benefit fraud scheme that defrauded the government of $400,000 has been sentenced to 27 months in prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to the indictment, Ray Chism III defrauded the government by purchasing Supplemental Nutrition Assistance Program (SNAP) benefits from recipients for cash in amounts less than the face value of the benefits. He would then redeem the benefits at full monetary value.
From October 2011 to December 2013, Chism recruited multiple SNAP recipients willing to sell their allotted benefits for amounts less than face value. Chism subsequently redeemed the benefits through Maxi Foods, a grocery store owned by Chism’s brother, Remark Chism, for full monetary value. In October, Remark Chism was sentenced to 37 months imprisonment for masterminding a separate $2.8 million federal benefit fraud scheme.
SNAP (formerly known as Food Stamps) is a program designed to help low- and middle-income families purchase food. A SNAP beneficiary is provided a designated amount of funding each month via a rechargeable Electronic Benefits Transfer (EBT) card. Cardholders are able to use the allotted funding to purchase eligible food items at authorized retailers. Maxi Foods possessed a SNAP EBT card system, enabling SNAP beneficiaries to pay for eligible food items with their EBT card.
Chism also masterminded a scheme to defraud the Child Care Certificate Program, which provides federal funding to assist underprivileged families with child care costs, from October 2011 to December 2013. Chism paid cash to parents who qualified for Certificate Program benefits in exchange for use of their child care certificates. After acquiring the information, Chism would falsely report the children’s attendance to his daycare center, Helping Hands Enrichment Center, and receive reimbursement for care. Chism also provided non-qualifying parents with false employment verification, which qualified them for the Certificate Program.
In July 2015, Chism pled guilty to one count of conspiracy to commit SNAP benefit fraud and one count of conspiracy to commit child care benefit fraud.
On Tuesday, November 3rd, U.S. District Judge John T. Fowlkes Jr. sentenced Chism to 27 months imprisonment. Chism was also ordered to pay $200,000 in restitution.
This investigation was conducted by the United States Department of Agriculture Office of the Inspector General; United States Secret Service; United States Marshals Service; Memphis Police Department – Organized Crime Unit; and the Tennessee Department of Human Services.
Assistant U.S. Attorneys Larry Laurenzi and Debra Ireland prosecuted the case on the government’s behalf.
Shooter of Off-Duty MPD Officer Indicted on Federal ChargesRead the Press Release
Memphis, TN – A man responsible for fatally shooting an off-duty Memphis Police officer has been indicted federally, along with his wife. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, Lorenzo Clark, 36, of Memphis, unlawfully possessed a Glock 9mm pistol on Sunday, October 11, 2015. The firearm was reportedly used by the defendant in the fatal shooting of 31-year-old Terence Olridge, an officer with the Memphis Police Department (MPD). Olridge was off duty at the time of the shooting.
According to the federal complaint, MPD officers responded to a shooting call at Lorenzo Clark’s Cordova residence. Officers later recovered the Glock 9mm alleged to be used in the shooting from the defendant. Lorenzo Clark gave a post-Miranda statement admitting to possession of the Glock 9mm prior to and during the shooting with Olridge. After searching Clark’s home, law enforcement recovered two additional firearms – a Colt 5.56mm rifle and an Escort 12 gauge shotgun.
Lorenzo Clark’s wife, Natalie Clark, 37, of Memphis, has also been charged in the indictment. Between February 2012 and October 2015, Natalie Clark provided three firearms — a Glock 9mm, Escort 12 gauge and Colt 5.56mm rifle — to her husband despite knowing he had been convicted of a felony, according to the indictment.
Lorenzo Clark has been charged with three counts of felony possession of a firearm. He faces up to 10 years imprisonment and a fine of up to $250,000 on each count.
Natalie Clark has been charged with three counts of disposing of a firearm to a felon. She faces up to 10 years imprisonment and a fine of up to $250,000 on each count.
The case is being investigated by the MPD and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Marques Young is prosecuting the 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.
Memphian Sentenced to Federal Imprisonment for $2.8 Million Federal Benefit Fraud SchemeRead the Press Release
Memphis, TN – A Memphis man who masterminded a federal benefit fraud scheme that cost the government approximately $2.8 million has been sentenced to 37 months in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
From October 2011 to December 2013, Remark Chism, 35, defrauded two public assistance programs: Supplemental Nutrition Assistance Program (SNAP) benefits and Child Care Certificate Program.
Chism, along with co-conspirators, recruited multiple SNAP recipients willing to sell their allotted benefits for amounts less than face value. The benefits were redeemed through Maxi Foods, a grocery store owned by Chism, for full monetary value. More than $1.9 million in SNAP benefits were unlawfully redeemed for cash over the two-year period.
SNAP (formerly known as Food Stamps) is a program designed to help low- and middle-income families purchase food. A SNAP beneficiary is provided a designated amount of funding each month via a rechargeable Electronic Benefits Transfer (EBT) card. Cardholders are able to use the allotted funding to purchase eligible food items at authorized retailers. Maxi Foods possessed a SNAP EBT card system, enabling SNAP beneficiaries to pay for eligible food items with their EBT card.
Chism also masterminded a scheme to defraud the Certificate Program, which provides federal funding to assist underprivileged families with child care costs, from October 2011 to December 2013. Chism, along with co-conspirators, paid cash to parents who qualified for Certificate Program benefits in exchange for use of their child care certificates. After acquiring the information, Chism would falsely report the children’s attendance at his daycare center, K.A.R.E. 3 Enrichment Center, and receive reimbursement for care.
The loss to the Certificate Program through K.A.R.E. is estimated at more than $986,000 over the two-year period.
In June 2015, Chism pled guilty today to one count of conspiracy to commit SNAP benefit fraud, one count of conspiracy to commit child care benefit fraud, and one count of false statements.
On Wednesday, October 28th, Judge Samuel H. Mays sentenced Chism to 37 months in prison on each of the counts. The prison terms will be served concurrently. Chism was also ordered to pay more than $2.8 million dollars in restitution.
This investigation was conducted by the United States Department of Agriculture Office of the Inspector General; United States Secret Service; United States Marshals Service; Memphis Police Department Organized Crime Unit; and the Tennessee Department of Human Services.
Assistant U.S. Attorneys Larry Laurenzi and Debra Ireland prosecuted the case on the government’s behalf.
Operation Mexicalley Main Conspirator Sentenced to 144 MonthsRead the Press Release
Jackson, TN – The main conspirator in a drug ring responsible for distributing massive amounts of methamphetamine throughout West Tennessee has been sentenced to 144 months in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to the indictment, between February and August 2013, Richard E. Alley, 41, of Hardin County, conspired with more than a dozen others to unlawfully distribute and possess with intent to distribute significant quantities of meth in various West Tennessee jurisdictions, including Clifton, Savannah, Wayne County and Hardin County.
Operation Mexicalley, a year-and-a-half-long investigation conducted by federal, state, and local law enforcement agencies, revealed that Alley and 17 others were immersed in a drug ring conspiracy to distribute meth and marijuana in the state’s western district. Fifteen of the defendants were indicted in January 2014 and three others in August 2014. Alley’s drug trafficking organization was transporting the meth from Mexico into West Tennessee for distribution, hence the name "Operation Mexicalley." Thus far, 17 of the defendants have pled guilty and 14 have been sentenced. One defendant, Oscar Alvarez Franco, remains a fugitive.
Over the course of Operation Mexicalley’s duration, 13 state and federal search warrants were executed on residences of the defendants. During these searches, law enforcement officials seized more than 640 grams of meth and over 80 grams of marijuana. Law enforcement also seized 75 firearms, which included an arsenal of pistols, revolvers, rifles, and shotguns.
In July 2015, Alley pled guilty to one count of conspiracy to distribute and possess with intent to distribute meth. He also pled guilty to one count of aiding and abetting, distributing, attempting to distribute, and possessing with intent t0 distribute meth.
Last week, Chief U.S. District Judge J. Daniel Breen sentenced Alley to 144 months on the conspiracy charge and 60 months on the aiding and abetting charge. The sentences will be served concurrently.
The case was investigated by the Federal Bureau of Investigation, Tennessee Bureau of Investigation, 24th Judicial Drug Task Force, and Lexington Police Department.
Assistant U.S. Attorney Beth C. Boswell prosecuted the case on the government’s behalf.
Married Couple, Son, and Accomplice Indicted for Defrauding MedicareRead the Press Release
Jackson, TN – The February 2015 indictment of a married couple and their accomplice, charging them with defrauding Medicare, has been superseded to add the couple’s son as a fourth defendant. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the superseding indictment today.
In addition to Calvin Bailey, Sandra Bailey, and Cindy Mallard, Bryan Bailey has also been charged in a superseding indictment alleging a conspiracy to commit health care fraud and to pay illegal kickbacks in connection with health care services. Bryan Bailey has also been charged with wire fraud.
According to the superseding indictment, Sandra Bailey and Calvin Bailey sold durable medical equipment including power wheelchairs and back braces. From November 2009 to September 2011, they were both employed at Jaspan Medical Systems, a durable medical equipment company with an office in Jackson, Tennessee. Durable medical equipment is designed for repeated use and medical purpose.
The Baileys’ co-defendant, Mallard, also worked as a salesperson for Jaspan from June 2011 to September 2012. Prior to that, Mallard was employed as an office manager at Medina Family Medical Clinic from November 2009 until June 2011.
Bryan Bailey, Sandra Bailey and Calvin Bailey’s son, was the operations manager at Jaspan from December 2009 to July 2013.
From at least November 2009 to April 2013, all four defendants were members of a conspiracy to defraud Medicare, a federal health care benefit program, of thousands and also pay illegal kickbacks to health care providers and patient-referral sources.
Earlier this year, three of the defendants — Calvin Bailey, Sandra Bailey, and Mallard — were indicted for conspiracy to commit health care fraud and to pay illegal kickbacks in connection with health care services. Sandra Bailey was also indicted on multiple counts of health care fraud and paying illegal kickbacks to health care providers and patient-referral sources.
Sandra Bailey and Mallard each worked for several years in health care businesses in the Jackson, Tennessee area. Calvin Bailey was employed as the principal at Medina Elementary School in Medina, Tennessee, and was also employed by various medical equipment supply companies.
According to the superseding indictment, Sandra Bailey paid illegal kickbacks to referral sources to identify Medicare card-holders. Sandra Bailey marketed power wheelchairs and back braces to the Medicare card-holders. Commissions for sales of wheelchairs to the Medicare card-holders identified by the referral sources were distributed among the four defendants, as well as to Bryan Bailey’s wife and Mallard’s husband and daughter.
In addition to the illegal kickback payments to referral sources, Sandra Bailey also paid kickbacks to some health care providers who performed — or were supposed to have performed — face-to-face evaluations of card-holders to qualify them for power wheelchairs. Mallard, who was the office manager at Medina Family Medical Clinic, assisted Sandra Bailey by visiting card-holders with her. Mallard also filled out forms that were supposed to be completed during a face-to-face evaluation of a patient by a physician or other qualified health care provider. Mallard then assisted Sandra Bailey in getting those forms signed by providers who were supposed to have conducted face-to-face evaluations of the card-holders. Mallard also received kickback payments on behalf of one of the health care providers who signed the forms.
All four defendants face up to five years imprisonment and fines of up to $250,000 on the conspiracy charge.
Sandra Bailey also faces up to 10 years and a fine of up to $250,000 on each of eight counts of health care fraud.
Sandra Bailey faces up to five years and a fine of up to $250,000 on each of nine counts of paying illegal kickbacks.
In addition to the conspiracy charge, Bryan Bailey faces up to 20 years and a fine of up to $250,000 for wire fraud.
This investigation is being conducted by the Department of Health and Human Services - Office of the Inspector General, the Federal Bureau of Investigation, and the Tennessee Bureau of Investigation.
The case is being prosecuted by Assistant U.S. Attorney John Fabian 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.
Former FedEx Hub Employees Indicted for Million-Dollar Shipping Theft SchemeRead the Press Release
Memphis, TN – Five men have been indicted for their roles in a shipping theft scheme that defrauded FedEx of more than $1.7 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
The defendants include:
Christopher T. Crawford, 31, Memphis, former FedEx material handler
Akeem Gowdy, 23, Memphis, former FedEx material handler
Tavaris Mickens, 23, Memphis, former FedEx supervisor
Juan Royal, 24, New York City, co-conspirator
Jordan West, 27, New York City, co-conspiratorAccording to the indictment, throughout 2013 and 2014, all five defendants engaged in a conspiracy to commit interstate shipping theft of wireless mobile devices from both Verizon and AT&T. The mobile devices were being shipped throughout the United States by FedEx.
Three of the defendants — Crawford, Gowdy and Mickens — were employed with FedEx during the scheme’s duration. They used fraudulent FedEx corporate shipping accounts to print labels, which they used to over-label boxes of wireless devices. These boxes were diverted to other known and unknown co-conspirators in New York City and other cities through interstate commerce. Each box of merchandise contained thousands of dollars worth of Verizon and/or AT&T wireless mobile devices.
As part of the fraud, Crawford and West sent $10,000 in U.S. currency via FedEx to one another. In mid-2013, Crawford also contacted a FedEx vendor call center in Tucson, Arizona to set up a fraudulent corporate shipping meter account via his wireless mobile telephone.
According to the indictment, each of the defendants knew the wireless devices were stolen when they engaged in acts to perpetrate the crime. Ultimately, the interstate shipping theft scheme defrauded FedEx of more than $1.7 million.
All five defendants are charged with one count of conspiracy and one count of interstate shipping theft. The defendants face individual sentences of up to 10 years imprisonment and fines of up to $250,000 for each count.
Crawford and West are also charged with one count of mail fraud. They face individual sentences of up to 20 years imprisonment for this offense and fines of up to $250,000.
Crawford is also charged with one count of wire fraud. He faces up to 20 years imprisonment for this offense and a fine of up to $250,000.
The case is being investigated by the United States Secret Service, Federal Bureau of Investigations, and Memphis Cargo Theft Task Force.
Assistant U.S. Attorney Damon K. Griffin is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Former Federal Correctional Officer, Inmate Indicted for Attempting to Smuggle Marijuana into a Federal PrisonRead the Press Release
Memphis, TN – A former federal correctional officer and a federal inmate have been indicted for attempting to smuggle marijuana into a Memphis prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, Keair Kemp was a public official and employed as a correctional officer at Federal Correctional Institution (FCI) Memphis. Travonte Johnson was an inmate at FCI Memphis.
Between mid-2015 and August 2015, Kemp and Johnson developed a scheme to smuggle marijuana into FCI Memphis. In exchange for cash, Kemp agreed to smuggle marijuana into the prison and to Johnson, thus violating his official duties as a correctional officer.
Kemp has been charged with one count of accepting money in return for being influenced to act in violation of his official duties. He is also charged with one count of attempting to provide a prohibited object, marijuana, to an inmate.
Johnson is charged with one count of offering money to a public official, to influence the performance of their official duties. Johnson is also charged with attempting to possess a prohibited object, marijuana, in prison.
If convicted, Kemp and Johnson face individual sentences of up to 15 years imprisonment and fines of up to $250,000 for the bribery charge. They each face up to five years imprisonment and fines of up to $250,000 on the contraband charge.
The case is being investigated by the Federal Bureau of Investigation, Department of Justice - Office of Inspector General, and the Federal Bureau of Prisons.
Assistant U.S. Attorney Mark Erskine is prosecuting the 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.
Man who Killed Off-Duty MPD Officer Charged with Federal Firearm ViolationRead the Press Release
Memphis, TN – The man who fatally shot off-duty Memphis Police Department (MPD) officer Terence Olridge last Sunday has been charged federally with felony possession of a firearm. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the charge today.
On Sunday, October 11, 2015, 36-year-old Lorenzo Clark unlawfully possessed a Glock 9mm pistol. According to the federal complaint, MPD officers responded to a shooting call at Clark’s Cordova residence. Officers later recovered a Glock 9mm from Clark.
Clark gave a post-Miranda statement admitting to possession of the Glock 9mm prior to and during the shooting with Olridge, a 31-year-old MPD officer.
If convicted of felony possession of a firearm, Clark faces up to 10 years in federal prison.
The case is being investigated by the MPD and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
In-home Caretaker Pleads Guilty to Stealing More Than $80,000 from her Client’s EstateRead the Press Release
Memphis, TN – An in-home caretaker has pled guilty to bank fraud and conspiring to commit mail fraud in a scheme that defrauded a deceased woman’s estate of more than $80,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the plea today.
According to the indictment, Shirley Hardaway, 59, of Memphis, was the owner and operator of Companion Plus, an in-home health and respite care provider to sick, disabled, and elderly people. Hardaway served as the daily in-home caretaker of the deceased victim for approximately four-to-five years, according to information presented in court. The home services ceased when the victim died in September 2009 at the age of 91. The deceased victim left behind more than $80,000 in two investment accounts at Franklin Templeton Investments, an investment managing company headquartered in California.
Nearly two years after the victim’s death, in June 2011, Hardaway mailed fraudulent change of address requests to Franklin Templeton on the decedent’s investment accounts, changing the address used for future correspondence between the parties to Hardaway’s address.
Hardaway and a co-conspirator then opened a fraudulent bank account online in the decedent’s name at Bank of America. The victim’s name, social security account number, and address were used to open the account.
After the Bank of America account was activated, Hardaway and her co-conspirator mailed several fraudulent documents to Franklin Templeton in the decedent’s name requesting that the company liquidate the victim’s two investment accounts and transfer the money within them to the fraudulently opened bank account. Upon receiving the request to liquidate both of the deceased victim’s accounts, Franklin Templeton
electronically transferred more than $80,000 to the bank account. Hardaway then transferred the money to her personal Bank of America savings account and withdrew it all via cashier’s check.
On Thursday, October 8th, 2015, Hardaway pled guilty to bank fraud and conspiracy to commit mail fraud.
The plea included a criminal forfeiture provision in the amount of money stolen from the decedent’s investment accounts: $80,423.67.
Hardaway faces up to 30 years imprisonment and a fine of up to $1 million on the bank fraud charge. She faces up to 20 years imprisonment and a fine of up to $250,000 on the conspiracy to commit mail fraud charge.
Hardaway is scheduled to be sentenced by Judge Jon Phipps McCalla on January 6th, 2016.
The case was investigated by the United States Secret Service.
Assistant U.S. Attorney Leetra Harris is prosecuting the case on the government’s behalf.
Former JabberBlabber Employee Pleads Guilty to Defrauding Publication of More Than $70,000Read the Press Release
Memphis, TN – A former employee of JabberBlabber, Inc. a Memphis-based children’s magazine, has pled guilty to defrauding the publication of more than $70,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the plea today.
According to information presented in court, Katrina Sears, 32, of Horn Lake, MS, worked as an accounts receivable clerk for JabberBlabber between February 2008 and February 2014. Over the six-year period, her duties included managing both the publication’s receivable and payable accounts as well as performing routine clerical duties.
Sears had authorization to receive and open letters delivered to JabberBlabber; checks were enclosed in many of the letters. Sears was required to record the payments into the magazine’s QuickBooks accounting software program and subsequently provide them to designated staff members for deposit. Sears was not authorized to conduct any banking transactions on JabberBlabber’s behalf including deposits and withdrawals, according to information presented in court.
Between December 2010 and February 2014, Sears embezzled more than 150 letters containing checks made payable to JabberBlabber. According to court information, Sears reportedly forged the payee line on the checks and deposited the money into her personal Bank of America account. Sears would then delete or edit the corresponding invoice from the QuickBooks accounting software.
According to court information, a review of JabberBlabber’s accounting records by the United States Postal Inspection Service showed that approximately 160 invoices had been deleted or edited from the software. Furthermore, a review of Sears’ bank records
revealed she had deposited more than $70,000 worth of checks initially made payable to JabberBlabber.
On Thursday, October 8th, 2015, Sears pled guilty to one count of obstruction of correspondence.
Sears faces up to five years imprisonment and a fine of up to $250,000.
She’s scheduled to be sentenced by Judge John T. Fowlkes Jr. on January 8th, 2016.
The case was investigated by the United States Postal Inspection Service.
Assistant U.S. Attorney Leetra Harris is prosecuting the case on the government’s behalf.
Two Men Plead Guilty to Defrauding Memphis VA Medical Center of $1 MillionRead the Press Release
Memphis, TN – Two men have pled guilty to conspiring to execute a scheme that defrauded the Memphis VA Medical Center of $1 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the pleas today.
According to the indictment, from August 2007 to July 2013, Andre Reddix, 59, and Ronnie White, 61, both of Memphis, conspired to embezzle more than $1 million from the VA. The medical center provides health care services to veterans in western Tennessee, northern Mississippi, and northeastern Arkansas.
Reddix was an employee at the VA during the scheme’s duration, according to information presented in court. His duties included using a company-issued credit card to buy medical supplies for the VA.
In August 2007, Reddix concocted a scheme with White, which involved White establishing a medical supply company entitled White Pharmaceuticals. Following the company’s formation, Reddix got White Pharmaceuticals approved to serve as a vendor that provided medical supplies to the VA.
For nearly six years, Reddix created fraudulent purchase orders to White Pharmaceuticals for medical supplies that were never delivered to the VA. Subsequently, White prepared and sent the VA fraudulent invoices that corresponded with each of the fraudulent purchase orders.
Reddix used the company-issued credit card to fraudulently pay White Pharmaceuticals for the undelivered medical supplies. The defendants then divided the payments amongst themselves, using the funds for personal expenses.
Ultimately, more than 300 fraudulent transactions were made by the defendants. The VA was defrauded of more than $1 million during the scheme.
On Wednesday, September 30th, Reddix pled guilty to conspiracy to defraud the VA of approximately $1 million.
On Friday, September 11th, White pled guilty to conspiracy to defraud the VA of approximately $1 million.
Both pleas included $1 million criminal forfeiture provisions.
White is scheduled to be sentenced by Judge Samuel H. Mays Jr. on December 11, 2015.
Reddix is scheduled to be sentenced by Judge Samuel H. Mays Jr. on January 7, 2016.
Both defendants face individual sentences of up to five years imprisonment when sentenced. In addition to the $1 million criminal forfeiture provisions, the defendants face individual fines of up to $250,000.
Repeat Offender Sentenced to 10 Years for Bank Fraud, Identity TheftRead the Press Release
Memphis, TN – A woman with multiple felony convictions has been sentenced to 10 years imprisonment for bank fraud and aggravated identity theft. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.
According to facts presented in court, from December 2014 to March 2015, Patricia Ann Johnson, 38, targeted and obtained the bank account numbers and other identifying personal information of individuals who had the same name as her. She impersonated these individuals to make cash withdrawals from their accounts at area banks, which included First Citizens, Regions, SunTrust, and First Tennessee. The victims were from Tennessee and other states.
One of the fraudulent bank transactions occurred on December 3, 2014 at First Citizens Bank on Highway 70. The defendant impersonated another Patricia Johnson and obtained $9,000 from the victim’s account.
Another fraudulent transaction occurred on March 7, 2015 at First Tennessee Bank on Kirby Parkway. Once again, the defendant impersonated another Patricia Johnson and obtained $4,000 from the victim’s account.
On March 19, 2015, the defendant was arrested while attempting to make a fraudulent transaction at SunTrust Bank on Poplar. In total, the defendant obtained more than $20,000 during her scheme.
Johnson has an extensive criminal record, which includes 24 felony convictions.
Johnson was charged with bank fraud, aggravated identity theft, and violating the supervised release of her last federal conviction for identity theft. She was sentenced to 10 years imprisonment on Monday, September 28th by Judge Jon Phipps McCalla.
The case was investigated by the United States Secret Service.
Assistant U.S. Attorney Stephen Hall prosecuted the case.
Former Obion County Jailer, Inmate Indicted for Smuggling MarijuanaRead the Press Release
Jackson, TN – A former Obion County Jail correctional officer, a jail inmate, and the inmate’s girlfriend have all been indicted on federal drug charges. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, from February 2015 until June 2015, Markia Patton, 30; Cara Bing, 34; and Shalyndrea Williams, 25, conspired with each other to smuggle and distribute marijuana inside Obion County Jail.
Patton, an inmate at the Obion County Jail, had his girlfriend, Williams, bring marijuana into the jail. From there, Bing, a correctional officer at the time, would retrieve the marijuana, smuggle it inside the jail, and distribute it to Patton.
According to information presented in court, agents with the Tennessee Bureau of Investigation (TBI) were informed that Patton was having marijuana brought into the jail. The investigation also revealed that Bing was aiding Patton in the criminal offense.
Based on the aforementioned information, surveillance was set up on the entrance to the women’s restroom in the lobby of the facility. In June 2015, agents discovered more than 30 grams of marijuana in the trash can of the restroom. Williams was allegedly directed by Patton to bring the drugs into the restroom.
Williams allegedly dropped off drugs and tobacco in the facility’s women’s restroom on at least six occasions for Patton, according to court information. Bing was paid several hundred dollars to retrieve and deliver the smuggled drugs to Patton.
All three defendants have been charged with one count of conspiracy to distribute and possess with the intent to distribute marijuana. They each have also been charged with one count of aiding and abetting, distributing, attempting to distribute, and possessing with the intent to distribute marijuana.
If convicted, the defendants face individual sentences of up to five years imprisonment. They also face individual fines of up to $250,000.
This case’s investigation was led by TBI. The Obion County Sheriff’s Department and 27th Judicial District Drug Task Force assisted with the investigation.
This case is being prosecuted by Assistant U.S. Attorney Beth Boswell.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Alleged Members of the Gangster Disciples Indicted for Roles in Attempted Murder of Five TeensRead the Press Release
Memphis, TN – Several alleged members of the Gangster Disciples have been indicted federally for their roles in the attempted murder of five teenagers in South Memphis.
U.S. Attorney Edward L. Stanton III; Shelby County District Attorney General Amy Weirich; Memphis Police Director Toney Armstrong; Shelby County Sheriff Bill Oldham; Special Agent in Charge for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Steven Gerido; and Federal Bureau of Investigation (FBI) Special Agent in Charge Todd McCall announced the superseding indictment today.
According to the superseding indictment, Ranito Allen, aka Nito, 35; Florence Anthony, aka Nikki, 36; Edwin Carvin, aka Ren, 38; Brandon Milton, aka Lil Folk, 30; and Erik Reese, aka E, 35, all of Memphis, were charged with five counts of attempted murder in aid of racketeering, among other offenses. Candies Wesley, 29, also of Memphis, was charged with being an accessory after the fact of attempted murder in aid of racketeering.
Alleged gang member Robert Mallory, aka Rambo, 33, was previously charged in this case. He remains charged in the superseding indictment.
As the superseding indictment alleges, all seven defendants are members of the Gangster Disciples, which is a nationally-known organized street gang that originated in the Chicago area and spread to other regions of the United States, including Memphis and surrounding areas. The Gangster Disciples are responsible for committing multiple acts of violence, including murder, attempted murder, and aggravated assault. The gang is also responsible for distributing large quantities of narcotics and trafficking firearms.
In June 2014, the defendants allegedly participated in the attempted murder of five teenagers in South Memphis for the purpose of gaining entrance to, maintaining or increasing their position in the Gangster Disciples.
Six of the defendants – Ranito Allen; Florence Anthony; Edwin Carvin; Brandon Milton; Robert Mallory; and Erik Reese – were charged with five counts of attempted murder. They each were also charged with five counts of using and carrying a firearm during and in relation to a crime of violence, aiding and abetting.
Mallory, Allen, and Carvin have all also been charged with being felons in possession of firearms.
This case is being investigated by the FBI, which is a part of the Multi-Agency Gang Unit (MGU). MGU is also comprised of the Memphis Police Department; Shelby County Sheriff’s Office; U.S. Attorney’s Office; and the Shelby County District Attorney General’s Office.
The case is being prosecuted by Assistant U.S. Attorneys Jerry Kitchen and Sam Stringfellow and David N. Karpel of the Criminal Division’s Organized Crime and Gang Section, in cooperation with the Shelby County District Attorney General’s Office.
The charges contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Alleged Members of Gangster Disciples Indicted for Roles in Five Attempted MurdersRead the Press Release
Six alleged members of the violent Gangster Disciples Gang have been indicted by a federal grand jury for their roles in the attempted murders of five teenagers in South Memphis, Tennessee. Three alleged gang members previously had been charged in this case.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Edward L. Stanton III of the Western District of Tennessee made the announcement.
Ranito Allen, aka Nito, 35; Florence Anthony, aka Nikki, 36; Edwin Carvin, aka Ren, 38; Brandon Milton, aka Lil Folk, 30; and Erik Reese, aka E, 35, all of Memphis, Tennessee, were charged in a superseding indictment unsealed today with five counts of attempted murder in aid of racketeering and related firearms offenses. In addition, Candice Wesley, 29, of Memphis, was charged with being an accessory after the fact.
According to the superseding indictment, the defendants are members of the Gangster Disciples, which is a nationally-known organized street gang that originated in the Chicago area and spread to other regions of the United States, including the greater Memphis area. The superseding indictment alleges that members and associates of the Gangster Disciples engaged in acts of violence, including murder, attempted murder and aggravated assault, as well as narcotics distribution and other criminal activities.
Specifically, the superseding indictment charges the defendants with participating in the attempted murders of five teenagers in South Memphis on or about June 21, 2014. According to the superseding indictment, the defendants did so for the purpose of gaining entrance to, or maintaining or increasing their positions in, the Gangster Disciples.
Tony Coburn, aka Blue, 26; Robert Mallory, aka Rambo, 33; and Almeda Burgess, aka Big Heavy, 28, previously were charged in this case. Mallory remains charged in the superseding indictment. Coburn pleaded guilty on July 28, 2015, to his role in the shootings, and Burgess pleaded guilty on Sept. 9, 2015, to being an accessory after the fact.
The charges and allegations in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
This case is being investigated by a multi-agency task force consisting of the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Memphis Multi-Agency Gang Unit; the Memphis Police Department; the Shelby County, Tennessee, Sheriff’s Office and the Atascosa County, Tennessee, District Attorney’s Office.
The case is being prosecuted by David N. Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Jerry Kitchen and Sam Stringfellow of the Western District of Tennessee. The Shelby County District Attorney’s Office has provided substantial assistance.
Mallory et al Superseding Indictment
U.S. Attorney’s Office Joins DEA for 10th National Prescription Drug Take-BackRead the Press Release
Memphis, TN – This Saturday, the U.S. Attorney’s Office will join the Drug Enforcement Administration (DEA) for its 10th National Prescription Drug Take-Back. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, and Michael Stanfill, Assistant Special Agent in Charge of the DEA’s Atlanta Field Division – Memphis Resident Office, announced the collaboration today.
"Prescription drug abuse constitutes one of the greatest public safety and public health epidemics of our time, inflicting devastating, long-term effects on individuals – and destroying families, neighborhoods, and entire communities. Join our fight against this issue by ridding your medicine cabinets of any unneeded prescription drugs."
The Prescription Drug Take-Back will take place in West Tennessee and nationwide Saturday, September 26th, from 10 a.m. to 2 p.m. Collection sites will be set up throughout local communities for residents to safely dispose their unused, unwanted, and/or expired prescription drugs. Residents can visit
www.dea.gov to view the sites for every local community. New take-back locations will be added to the website on a continuous basis.
The nine Take-Backs that have occurred over the last four years have produced substantial results: More than 4.8 million pounds (2,411 tons) of prescription drugs have been collected by law enforcement. The last Take-Back event in September 2014 garnered 617,150 pounds (309 tons) of unwanted medicine across the country. In Tennessee, there were 11,510 pounds of prescription drugs disposed of by residents during last year’s take-back.
"Prescription drug abuse is a huge problem, and this is a great opportunity for folks around the country to help reduce the threat," Stanfill said. "Please clean out your medicine cabinet and make your home safe from drug theft and abuse."
Prescription drug abuse has grown into a nationwide epidemic over recent years. It's the fastest-growing illicit drug issue in the country, according to the DEA's "National Drug Threat Assessment." Two and a half times more Americans currently abuse prescription drugs than those using cocaine, heroin, hallucinogens, and inhalants combined. Furthermore, a significant amount of people suffer accidental poisonings and overdoses due to overconsumption of prescription drugs.
Launched in 2010, the Prescription Drug Take-Backs are a way to spread awareness of, and help suppress, pharmaceutical-controlled substance abuse, distribution, and theft across the country. Studies have revealed that many of those who abuse prescription drugs obtain them from family and friends. Furthermore, many Americans do not know how to properly dispose of their unused medicine, often flushing them down the toilet or throwing them away – both potential safety and health hazards.
In addition to dea.gov, other websites adults and children can visit to educate themselves on the dangers of legal and illegal drugs are
www.justhinktwice.com and www.GetSmartAboutDrugs.com.
Millington Man Found Guilty of Running Teenage Sex Trafficking RingRead the Press Release
Memphis, TN – The trial of a 51-year-old Millington man responsible for trafficking multiple underage teens for sex culminated Tuesday evening. A jury unanimously decided that Michael Lilley was guilty of multiple counts of sex trafficking minors and other offenses. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the verdict today.
"Michael Lilley coerced vulnerable, underage teens into sacrificing their bodies sexually for his own monetary gain," Stanton said. "Because a jury recognized how reprehensible his criminal actions were, Lilley will now be spending many years in a federal prison with no chance of parole."
From May to September 2013, Lilley had four minors engage in commercial sex acts out of his Millington home, backhouse, van, and other locations. The victims were 15-, 16-, and 17-year-old students, some of whom attended Brighton High School and Millington High School.
Lilley used text messages and explicit photos of the teens to market them to various males willing to pay for sex. In addition to trafficking the victims out of his residence and vehicle, Lilley transported the juveniles to local restaurants and homes where they would engage in commercial sex acts. Lilley collected the proceeds provided from patrons, splitting them with the victims.
According to court information, the teens were trafficked for as little as $60 per sexual endeavor. Text messages disclosing conversations between Lilley and clients regarding price ranges were displayed in court. The majority of the individuals who solicited sex lived in rural areas including Millington, Covington, and Atoka.
Physical evidence presented during trial included images of both used and unused condoms and condom wrappers throughout Lilley’s home and vehicle. Trafficking victims testified, recollecting their experiences working for Lilley while underage teens.
On the evening of Tuesday, September 22nd, a jury decided that Lilley was guilty of all counts. These counts include four counts of sex trafficking of a minor; one count of conspiracy to commit sex trafficking; three counts of sexually exploiting a minor; one count of attempting to sexually exploit a minor; three counts of distributing visual depictions of a minor engaged in sexually explicit conduct; and one count of possessing at least one digital storage device containing visual depictions of minors engaged in sexually explicit conduct.
Lilley is scheduled to be sentenced by Judge John T. Fowlkes Jr. on Thursday, December 17th. He faces a minimum sentence of 15 years imprisonment and a maximum of life.
The investigation was conducted by the Federal Bureau of Investigation’s Child Exploitation Unit.
The case is being prosecuted by First Assistant U.S. Attorney Larry Laurenzi and Assistant U.S. Attorney Debra Ireland on the government’s behalf.
Texas Man Pleads Guilty to Defrauding Company of $300,000Read the Press Release
Memphis, TN – A Texas man has pled guilty to maintaining a scheme that defrauded a labor service provider of $300,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to information presented in open court, Robert Ross was employed by Impact Logistics for two decades. Impact was a cost per unit labor service provider for large distribution companies such as Home Depot, Ryder Truck Rentals, and Discount Tire. Among the services provided by the company were loading and unloading trailers, performing assembly line work, sorting, and shrink wrapping products.
Impact operated in multiple states including Tennessee, California, Texas, Georgia, Mississippi, Illinois, and Pennsylvania. The company maintained a corporate office in Memphis. Impact employees were paid through direct deposit or prepaid debit cards titled "Transcards."
Ross held the position of senior director prior to his termination, according to court information. Under the role, he was responsible for managing Impact’s operations in Atlanta, Georgia and Dallas, Texas. He reportedly ensured that all billing and payroll was done accurately and submitted to the corporate office.
From February 2013 to June 2015, Ross defrauded Impact of $300,000 by making fraudulent representations regarding the employment status of former employees. He also made fraudulent entries in payroll records.
According to court information, Ross executed his scheme by intentionally failing to notify Impact when an employee resigned from the company. Thus, the former employee was not removed from the Impact payroll. Ross would falsely claim that the employees had lost their Transcards and requested for new prepaid cards to be activated. Impact would subsequently mail new Transcards from Memphis to Ross’
Mansfield, Texas residence. After receiving the Transcards, Ross submitted falsified time records in the name of the former employees to reflect that they had worked and were entitled to payment, according to court information. When Impact loaded money on the Transcards to pay the former employees, Ross used the funds for his personal benefit. Ultimately, he defrauded Impact of approximately $300,000.
Ross faces up to 20 years imprisonment for wire fraud and a fine of up to $250,000. He’s scheduled to be sentenced by Judge John T. Fowlkes Jr. on Thursday, December 17th.
The case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Carroll Andre is prosecuting the case on the government’s behalf.
Associate of Memphis Mob Pleads Guilty to Drug ConspiracyRead the Press Release
Memphis, TN – An associate of the Memphis Mob, a violent street organization, has pled guilty to conspiring to possess hydrocodone with the intent to distribute. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to the indictment, Terrance Freeman unlawfully conspired with others to distribute large quantities of hydrocodone throughout the Memphis area beginning at a time period unknown to law enforcement but up until April 2014.
A yearlong investigation conducted by the Federal Bureau of Investigation (FBI) into the Memphis Mob revealed Freeman’s illicit activity. According to information presented in court, FBI agents executed a search warrant on Freeman’s house in April 2014. Numerous hydrocodone pills, more than $8,000 in drug currency, and a loaded Glock 9mm pistol with a 31-round extended magazine were recovered during the search. Freeman, who has three prior felony convictions, was subsequently detained on federal drug charges.
On Monday, September 14th, he accepted a plea of 12 ½ years in federal prison. Freeman also faces a fine of up to $2,500,000 when sentenced.
He’s scheduled to be sentenced by Judge Samuel H. Mays Jr. on December 17, 2015.
The case was investigated by the FBI and the Memphis Police Department.
Assistant U.S. Attorneys Daniel French and Reagan Taylor are prosecuting this case on the government’s behalf.
Gangster Disciples Member Receives 120 Months in Federal PrisonRead the Press Release
Memphis, TN – A 22-year-old member of the Gangster Disciples has been sentenced to 10 years in federal prison for felony possession of a firearm. The sentencing was announced today by Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee.
Gregory Shaw a.k.a. Violent is part of a Ripley, TN-based subset of the Gangster Disciples, one of the nation’s largest gangs. According to the indictment, on November 4th, 2014, Shaw knowingly possessed a Smith & Wesson .380 caliber pistol. He was a felon at the time.
According to information presented at the sentencing hearing, Shaw, along with several other members of the criminal street gang, robbed five individuals in the Highland Street Apartments Complex at gunpoint. Shaw struck two of the individuals in the head with a pistol. The perpetrators reportedly yelled out phrases symbolizing their allegiance to the Gangster Disciples during the crime.
An anonymous individual alerted the Ripley Police Department of a commotion involving individuals with handguns, according to court information. When officers arrived on the scene, they saw several males running from the back of the apartment complex. Law enforcement was able to locate and apprehend Shaw shortly after the crime behind a nearby residence. A loaded Smith & Wesson .380 caliber pistol and one of the victims’ wallets were in his possession. The gun had been stolen during a residential burglary in May 2013.
Last week, Judge John T. Fowlkes Jr. sentenced Shaw to the statutory maximum of 120 months imprisonment.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; Tennessee Bureau of Investigation; Ripley Police Department; and 25th Judicial District Attorney General’s Office.
The case was prosecuted by Special Assistant U.S. Attorney Samuel Stringfellow on the government’s behalf.
Felon Indicted for Possessing Firearm, Ammunition at St. JudeRead the Press Release
Memphis, TN – An Ohio man has been indicted for possessing a firearm and ammunition at St. Jude Children’s Research Hospital. The indictment was announced today by Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee.
An affidavit indicates that in March 2015, Memphis police officers responded to an aggravated assault call at St. Jude. The defendant, 29-year-old Aaron Cauley, had allegedly threatened the life of his child’s mother while they were inside of a patient room.
Cauley and his child’s mother were engaged in a heated argument when he pointed a pistol and threatened to kill her, according to the affidavit. Afraid for her life, the victim alerted St. Jude security of the occurrence. Security subsequently notified Memphis police officers, who arrived on the scene and detained Cauley. Officers reportedly located a knife in the defendant’s pants pocket while searching him.
The affidavit also indicates that security discovered a green backpack hidden under some children’s clothing in the patient room where the alleged incident occurred. A
Sig Sauer 9mm pistol and 56 rounds of 9mm ammunition were found in the backpack. Two hunting knives were also found, according to the affidavit.
Cauley is charged with being a felon in possession of a firearm and ammunition. If convicted, he faces up to life in federal prison. He also faces up to $250,000 in fines.
The case is being investigated by the Memphis Police Department and Project Safe Neighborhoods.
Special Assistant U.S. Attorney Dean DeCandia is prosecuting this case on behalf of the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
13 Indicted on Conspiracy Charges in Counterfeit Check Cashing SchemeRead the Press Release
Memphis, TN – Thirteen people were indicted today on conspiracy charges for their alleged participation in a counterfeit check cashing scheme that defrauded Kroger of more than $300,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment.
The case is being investigated by the United States Secret Service and the United States Postal Inspection Service.
The defendants indicted include:
• Eureka Roshanda Mathis a/k/a Eureka Barnes, 36, Memphis
• Khiyenne Tarinee Daniel, 20, Memphis
• Iesha Lazaira Davis, 24, Memphis
• Crystal Lynette Dennis, 40, Memphis
• Paul Anthony Dowdy, 25, Memphis
• Zakiyyah Lateefah Fitzgerald a/k/a Zakiyyah Adams, 38, Memphis
• Christopher La Renza Gathright, 23, Memphis
• Larry Joseph Lennix Jr, 24, Memphis
• Marcus T. Simmons, 25, Memphis
• Candice Cammille Starks a/k/a Candice Gaither, 36, Memphis
• Dorsett Starks, 28, Memphis
• Tischinna Amon Walton, 19, Memphis
• Lonell D. Weeks Jr., 39, Memphis
As the indictment alleges, the scheme was orchestrated by 36-year-old Eureka Mathis, a resident of Memphis. From February 2013 to August 2014, Mathis stole checks from the mailboxes of local businesses, primarily the United Food and Commercial Workers Union’s (UFCW) local chapter #1529 in Cordova, TN. Other businesses in the Cordova area were also victims of Mathis’ mail thefts.
The UFCW is a labor union representing approximately 1.3 million grocery, retail, food processing, and meat packing industry workers in the United States. According to the indictment, approximately 75 percent of Kroger employees are represented by the UFCW through its 400 local union chapters.
Mathis fraudulently altered the stolen UFCW checks by changing the name of the payee to one of her co-conspirators. She also used the stolen checks as templates to create counterfeit checks made payable to her co-conspirators and to others she recruited to further her scheme.
Over the two-plus-year period Mathis executed her scheme, she recruited more than two dozen individuals to cash the counterfeit checks. The co-conspirators traveled to various Kroger locations nationwide, as well as other establishments that provided check cashing services, to cash the counterfeit checks. The checks ranged from several hundred dollars to more than $2,000.
• Each defendant is being charged with one count of conspiracy to commit mail theft and to pass and utter fictitious obligations. If convicted, they each face up to five years imprisonment and individual fines of up to $250,000.
• Each defendant is being charged with one count of conspiracy to commit bank fraud. If convicted, they each face up to 30 years imprisonment and individual fines of up to $1 million.
• In addition to the aforementioned charges, Mathis is being charged with four counts of receipt and possession of stolen mail. Walton is being charged with two counts of receipt and possession of stolen mail. Davis is being charged with one count of receipt and possession of stolen mail. They each face up to five years imprisonment and individual fines of up to $250,000 per offense of conviction.
• Mathis is also being charged with one count of manufacturing counterfeited and forged securities. If convicted, she faces up to 10 years imprisonment and up to $250,000 in fines.
Assistant U.S. Attorney Leetra Harris is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.