Western District of Tennessee
Press releases recorded for this federal judicial district.
Memphis Man Sentenced to 210 Months on Drug Conspiracy and Gun ChargesRead the Press Release
Memphis, TN – Lewis Gibson, 29, of Memphis, TN, was sentenced yesterday to 210 months in federal prison for his role in a conspiracy to distribute over 500 grams of cocaine, announced U.S. Attorney Edward L. Stanton III.
According to facts alleged in the indictment and revealed during court hearings, officers with the Memphis Police Department’s Organized Crime Unit received a tip that Gibson was selling a large amount of cocaine from his residence. Surveillance by the officers revealed a large amount of foot traffic consistent with illegal drug sales.
After obtaining a search warrant, officers detained Gibson and searched his home, where they recovered cocaine base (crack), heroin, powder cocaine, $10,000 in cash, and a .357 caliber pistol, in addition to other items.
On August 22, 2013, Gibson pleaded guilty to one count of conspiracy to distribute over 500 grams of cocaine and one count of being a felon in possession of a firearm. In addition to the 210 month sentence for conspiracy to distribute, U.S. District Judge S. Thomas Anderson sentenced Gibson to a concurrent term of 120 months for firearms possession. Gibson will further be required to serve four years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Memphis Police Department’s Organized Crime Unit. Assistant U.S. Attorney Jerry Kitchen represented the government.
This case was prosecuted under the authority of the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.Child Sex Trafficker Keith “Greedy” Gibson Convicted on All CountsRead the Press Release
Memphis, TN – A federal jury in Memphis has convicted Keith Gibson, a/k/a “Greedy,” 44, of Memphis, on four charges relating to child sex trafficking announced U.S. Attorney Edward L. Stanton III, and Special Agent in Charge Todd McCall of the Federal Bureau of Investigation's Memphis Field Office.
Gibson was found guilty of child sex trafficking and conspiracy to commit child sex trafficking for his role in the exploitation of a 14-year-old girl. He was also found guilty of two counts of false statements in relation to a child sex trafficking investigation for his subsequent efforts to cover up the crime.
Gibson faces a mandatory sentence of at least ten years in prison and faces a maximum sentence of life imprisonment. He will be sentenced on April 30, 2014, by U.S. District Judge Jon Phipps McCalla. Gibson’s co-defendants, Tony Grandberry, Orreco Lyons a/k/a “Pico the Pimp,” Vivian Briggs a/k/a “Fortune,” Tamara Ramsey, and Falisha Edwards all pled guilty prior to trial. Grandberry received 11 years imprisonment followed by 10 years supervised release on October 30, 2013. Briggs received 4 years imprisonment and 3 years supervised release on November 14, 2013. Lyons received 7 years imprisonment and 7 years supervised release on December 16, 2013. Ramsey and Edwards are scheduled to be sentenced later this month.
The evidence at trial showed, among other things, that Gibson provided payment and contact information for an advertisement on Backpage.com offering the 14-year-old for prostitution. The jury heard from multiple people who were present with Gibson on January 1, 2013, when he provided the payment and contact information for the ad. The jury also heard from the 14-year-old victim, who testified that Gibson had talked about being her pimp and posting her to Backpage.com. She also testified that she lied about how old she was and that Gibson did not believe her and repeatedly questioned her age.
The jury saw a notebook recovered from Gibson’s car which included letters written by Gibson bragging that he “went back to what I’m famous for (Pimpin)” and was “getting pimp money.” The evidence also included the credit card used to pay for the advertisement, which had been on Gibson’s person when he was arrested.
The jury also heard from several FBI agents who testified regarding the lies Gibson told them after he was arrested. Two FBI agents also testified that when they arrested Gibson, his laptop computer was open to Backpage.com.
Protecting our children is one of society’s highest callings,” said U.S. Attorney Stanton. “When dangerous people look to fatten their wallets through the sexual exploitation of vulnerable young victims, the United States of America will not hesitate to bring them to justice."
“No child deserves to suffer the exploitation and abuse by “pimps” who prey on and destroy the lives of the most vulnerable in our community,” said Special Agent in Charge McCall. “Those who exploit their victims for profit should know the FBI and our law enforcement partners are committed to investigating allegations of sex trafficking, and are working to ensure that they face justice and are held accountable for their abominable criminal conduct.”
The case was investigated by the Federal Bureau of Investigation working with the Memphis Police Department and the United States Secret Service. Jaime Corman and Anthony Householder of the FBI led the investigation. The case was prosecuted by Assistant U.S. Attorney Jonathan Skrmetti and Assistant U.S. Attorney Mark Erskine.
U.S. Attorney Edward L. Stanton III established the Civil Rights Unit in February 2011 to ensure that every individual in the Western District of Tennessee enjoys the rights and freedoms guaranteed by the Constitution of the United States. The Civil Rights Unit assigns dedicated prosecutors to pursue the full spectrum of federal civil rights crimes, including official misconduct, human trafficking, and hate crimes, as well as law enforcement public corruption cases. Since the formation of the Civil Rights Unit, the Western District of Tennessee has consistently ranked as one of the top U.S. Attorney's Offices in the country for the prosecution of sex trafficking.United States Supreme Court Holds Oral Argument in Criminal Firearms Case from West TennesseeRead the Press Release
Memphis, TN – On Wednesday morning, the United States Supreme Court will hear oral argument in United States v. Castleman, a federal criminal case originating in the Western District of Tennessee, announced U.S. Attorney Edward L. Stanton III.
In 2001, James Castleman was convicted of misdemeanor domestic assault in state court in Carroll County, Tennessee. The state indictment alleged that Castleman intentionally or knowingly caused bodily injury to the mother of his child.
In 2008, law enforcement agents discovered that Castleman and his wife were allegedly buying firearms from dealers and selling them on the black market. In August 2009, a federal grand jury in Memphis charged Castleman with two counts of possessing a firearm after having been convicted of a misdemeanor crime of domestic violence, in violation of 18 U.S.C. § 922(g)(9).
The district court granted the defendant’s motion to dismiss these federal charges in April 2010, on the basis that defendant’s prior Tennessee domestic assault conviction was not “a misdemeanor crime of domestic violence,” as that term is defined in federal law.
The United States appealed, and in September 2012 the U.S. Court of Appeals for the Sixth Circuit affirmed the district court’s ruling, with each Judge of the divided three-member panel writing separately. The government sought rehearing by the en banc Court of Appeals, but the court declined to reconsider its decision.
In May 2013, the United States filed a petition for a writ of certiorari from the Supreme Court. The Court granted that petition on October 1, 2013. The question presented before the Supreme Court is whether Castleman’s Tennessee conviction for misdemeanor domestic assault by intentionally or knowingly causing bodily injury to the mother of his child qualifies as a “misdemeanor crime of domestic violence” under federal law. The case has important implications for federal prosecutions of domestic abusers who arm themselves with firearms.
Assistant U.S. Attorney Daniel French and Criminal Appellate Chief Kevin G. Ritz represented the United States during the proceedings in the lower courts. The Office of the Solicitor General is representing the government in the Supreme Court. Arguing for the United States is Assistant to the Solicitor General Melissa Arbus Sherry. A decision in the case is expected before the end of June.David Rohm Sentenced to 87 Months for Receipt of Child PornographyRead the Press Release
Memphis, TN – David Arthur Rohm, 65, of Jackson, TN, was sentenced yesterday to 87 months in federal prison following his guilty plea to one count of receipt of child pornography, announced U.S. Attorney Edward L. Stanton III.
According to facts alleged in the indictment and revealed during the sentencing hearing, Rohm knowingly received DVDs which contained visual depictions of minor boys engaged in sexually explicit conduct.
In addition to the prison sentence, United States District Judge S. Thomas Anderson ordered Rohm to serve 10 years of supervised release and to forfeit all computers and media containing alleged child pornography. There is no parole in the federal prison system.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Debra Ireland represented the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of 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.”Allan D. Cooper Sentenced to 27 Months for Wire FraudRead the Press Release
Memphis, TN – Allan D. Cooper, 66, of Memphis, TN, was sentenced today to 27 months imprisonment by United States District Judge John T. Fowlkes, Jr., announced U.S. Attorney Edward L. Stanton III. Cooper entered a guilty plea in September to a criminal information charging him with one count of wire fraud.
According to the one-count criminal information and statements made in court, between approximately October 2011 and May 2013, Cooper defrauded six individuals of $395,300. According to the information, Cooper made various false and fraudulent statements, representations and promises to induce the victims to give him monies as either a “loan” or an “investment.”
Cooper told some of his victims about an investment opportunity with an old friend of his named “Charlie” and that if the victims would give Cooper funds to invest with Charlie they would receive a substantial return. In these instances Cooper frequently gave the victims a post-dated check payable in an amount that represented the principal and the return on the investment. When the victim discovered that the check was worthless, Cooper made other false representations and promises to repay.
Cooper told other victims that he was the owner of Cooper Chemical Company and that if they would loan him funds he would pay them back with substantial interest. In fact, “Cooper Chemical Company” was inactive and not conducting any business. Cooper also falsely represented that if a victim would loan him funds, they would be repaid with interest through disbursements from a trust in which defendant Cooper was a named beneficiary.
Cooper was also ordered to pay restitution to the victims in the amount of $395,300. There is no parole in the federal prison system. This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carroll L. Andre III represented the government.Tennessee Cardiologist to Pay $1.15 Million to Settle Allegations That He Performed Medically Unnecessary Heart ProceduresRead the Press Release
Jackson, TN – Cardiologist Dr. Elie H. Korban will pay $1.15 million to resolve False Claims Act allegations that he billed Medicare and Medicaid for medically unnecessary cardiac stent placements, the Justice Department announced today. Korban owns Delta Clinic, with offices in Jackson, Tenn., and Lexington, Tenn., and has privileges at Jackson-Madison County General Hospital and Regional Hospital of Jackson, both in Jackson, Tenn.
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“Billing Medicare for cardiac procedures that are not necessary or appropriate contributes to the soaring costs of health care and can harm patients,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “Protecting public funds and safeguarding Medicare beneficiaries continues to be a Department of Justice priority.”
Cardiac stents are mesh tubes placed in coronary arteries of patients to keep their arteries open during the treatment of coronary heart disease. The government contends that, from January 1, 2005, through December 31, 2008, Korban placed cardiac stents in Medicare and Medicaid patients when the stents were not medically necessary. The government also claims that Korban improperly billed Medicare for work performed by substitute doctors when he was available to perform the services himself.
“This case is one of many that underscores our commitment to holding accountable those who would cheat the health care system for their own personal profit,” said U.S. Attorney for the Western District of Tennessee Edward L. Stanton III. “We will continue to vigorously protect citizens from schemes that damage the ability of health care providers and patients to participate in a system free of false claims and dishonesty.”
As part of the settlement, Korban entered into an Integrity Agreement with the Department of Health and Human Services Office of Inspector General intended to deter wrongful conduct in the future. The agreement requires enhanced accountability and monitoring activities to be conducted by both internal and independent external reviewers.
“Too many recent frauds involve medically unnecessary heart stents,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General region including Tennessee. “Providers are warned that they can be aggressively investigated and held accountable for falsely billing federal health programs.”
Assistant Attorney General Delery thanked the Department of Health and Human Services Office of Inspector General, the Tennessee Bureau of Investigation, the U.S. Attorney’s Office for the Western District of Tennessee and the Commercial Litigation Branch of the Justice Department’s Civil Division for the collaboration that resulted in the settlement.
The allegations resolved by the settlement were first raised in a lawsuit filed against Korban under the qui tam, or whistleblower, provisions of the False Claims Act. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. As part of the settlement, the whistleblower, Dr. Wood M. Deming, will receive a share of the settlement amount. Deming’s share has not been determined.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $17 billion through False Claims Act cases, with more than $12.2 billion of that amount recovered in cases involving fraud against federal health care programs.
The case is captioned United States ex rel. Wood M. Deming v. Jackson-Madison County General Hosp., et al., Case No. 07-1116-BBD (W.D. Tenn.). The claims settled by this agreement are allegations only, and there has been no determination of liability.Bolivar Man Sentenced to A Total of 513 Months in Prison for Production and Possession of Child Pornography and Gun ChargesRead the Press Release
Jackson, TN – John McKinney, 71, of Bolivar, TN was sentenced yesterday to a total of 480 months in federal prison, following his September conviction on four counts of producing child pornography, and one count of possession of child pornography, announced U.S. Attorney Edward L. Stanton III.
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Chief U.S. District Judge J. Daniel Breen sentenced McKinney to 360 months in prison for each production charge, with the sentences set to run concurrently. Judge Breen further sentenced McKinney to 120 months in prison for the possession charge, with the sentence set to run consecutive to the other sentences. There is no parole in the federal prison system.
“Today’s sentence of 480 months reflects this community’s intolerance for the predatory acts committed by John McKinney,” said U.S. Attorney Stanton. “We will continue to work with our law enforcement partners to relentlessly pursue anyone who commits such heinous crimes and ensure that they face the full consequences of the law.
According to facts revealed during the trial, McKinney took sexually explicit pictures of girls as young as nine years old while the girls were visiting at his home. According to the sworn testimony of the mother of one victim, her younger daughter saw sexually explicit photos on McKinney’s computer. Investigators confiscated more than 87 CDs from a building on McKinney’s farm that contained pictures that he had taken depicting child pornography.
On June 25, 2013, McKinney was convicted by a federal jury of four counts of being a felon in possession of a firearm or ammunition. The guns and ammunition were discovered during the search of his home that revealed the pornographic photos. On September 27, 2013, Judge Breen sentenced McKinney to 33 months in prison on those charges. That sentence will run consecutive to his other sentences.
This case was investigated by the Hardeman County Sheriff’s Office, the Jackson Police Department and the FBI in Jackson. Assistant U.S. Attorneys Deb Ireland and James Powell represented the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of 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."Memphis Woman Receives Four Years for Theft of Government Funds and Identity TheftRead the Press Release
Memphis, TN – Temetriss Pope, 34, of Memphis, TN was sentenced last week by U.S. Senior District Judge Jon P. McCalla to 48 months in prison for stealing government funds through the filing of false income tax returns, announced U.S. Attorney Edward L. Stanton III.
According to the charging document and the facts discussed in court, at different times from 2008 to 2012, Temetriss Pope and other individuals obtained the names, dates of birth and Social Security numbers of individuals without their knowledge or consent, and thereafter filed numerous federal tax returns claiming refunds using this information. Some of this information was obtained from a Shelby County Warrant book that had been stolen.
Pope and others opened bank accounts in the name of fictitious businesses and directed the U.S. Department of Treasury tax refunds associated with the false tax returns to be electronically deposited into these accounts. Pope and her associates used different versions of tax preparation software to electronically file hundreds of false tax returns and fraudulently obtained over $870,000 during the scheme.
In addition to the prison sentence, Pope was also ordered to pay restitution in the amount of $870,252.45. There is no parole in the federal system. The case was investigated by the United States Secret Service and IRS-CID and prosecuted by Assistant United States Attorney Stephen Hall on behalf of the government.Jackson Man Pleads Guilty to Federal Civil Rights Charge of Desecrating Religious ParaphernaliaRead the Press Release
Jackson, TN – Justin Shawn Baker, 25, of Jackson, TN, pleaded guilty today to violating the civil rights of students and faculty of the Margolin Hebrew Academy by defacing a Torah and religious prayer books, announced U.S. Attorney Edward L. Stanton III.
According to information contained in the indictment and facts revealed during today’s plea hearing, on or about January 12, 2013, students and faculty of the Margolin Hebrew Academy were staying overnight at the Doubletree Hotel in Jackson en route to Gatlinburg, TN. While there, they used a meeting room at the hotel to conduct a Sabbath worship service. A Torah, religious books, and musical instruments were left in the meeting room overnight with the intention of continuing worship services on the following morning.
The facts presented today further revealed Baker admitted that while employed as a security guard at the hotel, he discovered the items in the room, and defaced the Torah, the prayer books, and the musical instruments with profanity, anti-Semitic phrases, and Satanic writing. He also admitted to spitting on the Torah. Photographic evidence presented during the hearing confirmed that the Torah was defaced with profanity and phrases including “Hail Satan.”
“Freedom of religion and the freedom to practice it without harassment are bedrock principles upon which our nation was founded,” said U.S. Attorney Stanton. “Baker’s offensive acts represent an attack upon the rights and freedoms enjoyed by every citizen, which generations of Americans fought and died to ensure and protect.”
This case was investigated by the FBI, and is being prosecuted by Executive Assistant U.S. Attorney Larry Laurenzi and Trial Attorney Douglas Kern of the Civil Rights Division’s Criminal Section.Bells Man Convicted of Methamphetamine TraffickingRead the Press Release
Jackson, TN – Angel Hernandez, 33, of Bells, TN, was convicted last night by a federal jury on one count of possession with intent to distribute 351 grams of ice methamphetamine, announced U.S. Attorney Edward L. Stanton III.
According to facts revealed during trial, on March 12, 2013, agents with the West Tennessee Violent Crime and Drug Task Force for the 28th Judicial District, the Drug Enforcement Administration and the Jackson Police Department executed a search warrant at the Deerfield Inn in Humboldt, Tennessee.
Hernandez was found in possession of 351 grams of ice methamphetamine. Agents also found a large amount of U.S. currency and other evidence that he intended to distribute the drugs. Agents with the task force testified that due to the purity of the methamphetamine, it had a potential street value of up to $50,000 and could have been distributed to more than one thousand individuals.
The jury deliberated approximately 30 minutes before returning its guilty verdict. Hernandez could be sentenced to between five and 40 years in prison and fined up to $5 million. There is no parole in the federal system.
This case was investigated by the West Tennessee Violent Crime and Drug Task Force for the 28th Judicial District and the Jackson Police Department. Assistant U.S. Attorney Matt Wilson represented the government.Arkansas Woman Pleads Guilty to Million-Dollar Health Care Fraud, Money Laundering SchemeRead the Press Release
Jackson, TN –Rebecca Christain, 57, of Mountain Home, AR, pleaded guilty on November 20, 2013, to a two-count federal information charging her with one count of health care fraud and one count of money laundering in relation to a Medicare fraud scheme, announced U.S. Attorney Edward L. Stanton III.
According to the facts alleged in the information and statements made during her guilty plea, Christain was the owner of Sleep Analysts, Inc. and a subsidiary company, Pulmonary Solutions. Pulmonary Solutions had offices in Michie, TN; Brownsville, TN; Savannah, TN; Waynesboro, TN; and Jackson, TN, and was in the business of providing respiratory therapy services to Medicare, Medicaid and other federal healthcare program patients.
From October 2008 to December 2009, Christain devised a scheme to defraud the Medicare program by hiring unlicensed individuals to perform services that were billed to Medicare as respiratory therapy services, and by instructing her staff to falsify records setting forth the amount of time during which services were provided. She also instructed employees to designate certain services for billing under physical therapy codes, which resulted in payments approximately double those of respiratory codes, and instructed employees to designate certain services to be double or triple billed using both physical therapy and respiratory therapy codes, even though Pulmonary Solutions never employed any physical therapists.
In total, Christain caused fraudulent claims in excess of $1,000,000 to be paid by Medicare and Medicaid for fraudulently billed respiratory therapy services. Christain is scheduled to be sentenced on February 20, 2014, in Jackson, TN, before U.S. District Judge J. Daniel Breen.
This investigation was conducted by the Department of Health and Human Services, Office of Inspector General; IRS-Criminal Investigation; the Federal Bureau of Investigation and the Tennessee Bureau of Investigation. Assistant U.S. Attorney John Fabian represented the government.Statement of the U.S. Attorney’s Office Concerning Federal Search Warrants Executed TodayRead the Press Release
Memphis, TN – Earlier today, federal search warrants were executed upon a number of establishments in Shelby County and North Mississippi. These warrants were filed under seal and are part of an ongoing investigation. Therefore, we have no further comment on this matter at this time.
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Law enforcement agencies involved in the execution of these search warrants include the Memphis Police Department Organized Crime Unit, the United States Secret Service, the United States Marshals Service, the United States Department of Agriculture, and the Tennessee Department of Human Services.Criminal Complaints Charge Matthew Schweitzer and Derek Wurth with Pair of Bank RobberiesRead the Press Release
Memphis, TNMatthew Schweitzer, 26, of Memphis and Derek Wurth, 25, were each charged in separate criminal complaints with one count of bank robbery, announced U.S. Attorney Edward L. Stanton III.
According to the facts alleged in the criminal complaints, on November 4, 2013, at approximately 1:43 p.m., a lone male entered the Kroger Store located at 676 N. Germantown Parkway in Cordova. He approached one of the bank tellers at Suntrust Bank located within Kroger, demanded money, and fled with the money.
On November 5, 2013, a Crime Stopper tip identified Schweitzer as the individual responsible for the bank robbery. That same day, members of the Federal Bureau of Investigation’s Safe Streets Task Force arrested Schweitzer without incident.
While in custody, Schweitzer confessed to the robbery of the Suntrust Bank and further confessed to being present during the October 11, 2013 robbery of the First Tennessee Bank located inside the Kroger Store at 9025 U.S. Highway 64. He identified Wurth as the individual responsible for the robbery of the First Tennessee Bank. Wurth was arrested on November 6, 2013 in Oxford, MS.
This case was investigated by the FBI’s Safe Streets Task Force. Assistant U.S. Attorney Lorraine Craig is representing the government.
The charges and allegations contained in the complaints are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Memphis Man Justin A. Jones Indicted for Filing False Irs FormsRead the Press Release
Memphis, TN – Justin A. Jones, 31, of Memphis, TN was indicted by a federal grand jury last week on charges that he created false Internal Revenue Service (IRS) documents for the purpose of causing the agency to place financial obligations on a third party, announced U.S. Attorney Edward L. Stanton III and Christopher A. Henry, Special Agent in Charge, IRS Nashville Field Office.
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According to facts revealed in the indictment, Jones corruptly endeavored to obstruct and impede the due administration of Internal Revenue laws by submitting to the Internal Revenue Service fictitious IRS Forms 1099-C (Cancellation of Debt) and 1099-OID (Original Issue Discount), each in the amount of $25,000, along with an IRS Form 1096 (Annual Summary and Transmittal), in order to cause the Internal Revenue Service to place financial obligations on J.W., a prosecutor assigned to prosecute Jones for criminal violations in Germantown, Tennessee, and the City of Germantown, when no relationship existed between Jones and J.W. or the City of Germantown that required the filing of the Form 1099-C or 1099-OID with the IRS. The IRS typically considers cancelled or forgiven debt to be taxable income to the debtor.
If convicted, Jones could receive up to three years in prison and a fine of up to $250,000. There is no parole in the federal system. This case was investigated by IRS Criminal Investigations, the Federal Bureau of Investigation, and the Germantown Police Department. Assistant U.S. Attorney Fred Godwin is representing the government.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Law Enforcement Sweep Nets Individuals Charged with Meth, Cocaine, and Marijuana DistributionRead the Press Release
Jackson, TN – More than 120 law enforcement officials from 13 different agencies participated in a takedown Wednesday of a group of individuals indicted for their roles in distributing methamphetamine, cocaine, and marijuana throughout West Tennessee, announced U.S. Attorney Edward L. Stanton III and Brian K. Chambers, Resident Agent-in-Charge of the Drug Enforcement Administration’s Memphis office.
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Thirteen individuals were charged with one count of conspiracy to distribute methamphetamine, cocaine, and marijuana; and one count of distribution of methamphetamine, cocaine and marijuana. The individuals charged are:
Roman Morales-Garza, 55, Jackson, TN
Felicia Almodover, 39, Jackson, TN
Angel Valeriano, 42, Jackson, TN
Raul Morales, 46, Bald Knob, AR
Rodrigo Guitierrez, Age Unknown, Jackson, TN
Arturo Penaloza, 31, Jackson, TN
Saul Lara-Ruiz, 32, Jackson, TN
Brian Warlick, 33, Jackson, TN
Vandrian Bradford, a/k/a Vadrian Cooper, a/k/a Eric Cooper, 40, Jackson, TN
Doyle Rushing IIII, 33, Jackson, TN
Vance Hudson, Jr., 46, Jackson, TN
Juan Javier Acosta-Melendez, 24, hometown unknown, Mexico
Anthony McKinnis, 36, Ripley, TN
If convicted, each charge carries a sentence of up to 20 years in prison and a fine of up to one million dollars. If any of the individuals has a prior drug conviction, the penalties increase to a maximum of 30 years in prison and a fine of up to two million dollars. There is no parole in the federal system.
This case was investigated by the DEA, the Federal Bureau of Investigation, Homeland Security Investigations, the Tennessee Highway Patrol, the Tennessee Bureau of Investigation, the Jackson Police Department, and the Madison County Sheriff’s Office. Agencies assisting the takedown included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service, the United States Secret Service, the West Tennessee Drug Task Force, the 25th Judicial District, and the Chester County Sheriff’s Office. Assistant U.S. Attorney Matt Wilson is representing the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Memphis Sex Trafficker Anthony Grandberry Sentenced to 11 Years in PrisonRead the Press Release
Memphis, TN – Anthony Grandberry, 32, of Memphis, Tenn., was sentenced to 11 years in federal prison today by U.S. Senior District Judge Jon P. McCalla for conspiracy to engage in child sex trafficking, announced U. S. Attorney Edward L. Stanton III. Grandberry pled guilty to the charge on July 1, 2013.
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In addition to the prison sentence, Grandberry will be subjected to 10 years of supervision after release from prison and will have to register as a sex offender. There is no chance of parole in the federal prison system.
“Today’s sentencing sends a clear message that any effort to sexually exploit a child for profit will not be tolerated and will result in severe consequences,” said Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee. “Anthony Grandberry is going to spend over a decade in federal prison because he put a 14 year-old-girl to work as a prostitute and chose to prioritize commercial gain over the welfare of a minor.”
According to the indictment, Grandberry received the 14-year-old girl from his co-defendant Orreco Lyons, also known as “Pico the Pimp,” in December 2012 as partial payment for a debt Lyons owed Grandberry. Grandberry made the girl prostitute for several days before passing her along to another co-defendant, Keith Gibson, also known as “Greedy” and “Pee-Wee.”
Lyons, along with co-defendants Tamara Ramsey and Falisha Edwards, pled guilty to sex trafficking conspiracy charges and are pending sentencing. Co-defendant Vivian Briggs pled guilty to using a facility of interstate commerce to promote child prostitution and is also pending sentencing. Gibson is set for trial in January 2014 and faces up to life in prison on child sex trafficking and child sex trafficking conspiracy charges.
The case was investigated by the FBI and the Memphis Police Department. Assistant U.S. Attorney Jonathan Skrmetti prosecuted the case.
U.S. Attorney Edward L. Stanton III established the Civil Rights Unit in February 2011 to ensure that every individual in the Western District of Tennessee enjoys the rights and freedoms guaranteed by the Constitution of the United States. The Civil Rights Unit assigns dedicated prosecutors to pursue the full spectrum of federal civil rights crimes, including official misconduct, human trafficking, and hate crimes, as well as law enforcement public corruption cases. Since the formation of the Civil Rights Unit, the Western District of Tennessee has consistently ranked as one of the top U.S. Attorney=s Offices in the country for the prosecution of sex trafficking.Amos Patton Named in Nine-Count Indictment Following Shooting at Millington National Guard CenterRead the Press Release
Memphis, TN – Amos Patton, 42, of Cordova, TN was indicted today by a federal grand jury on nine counts related to a shooting at the Tennessee Army National Guard Recruiting Center in Millington, TN, announced U.S. Attorney Edward L. Stanton III; Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation, A. Todd McCall; and Naval Criminal Investigative Service Special Agent Michael C. Cote.
Patton is charged with four counts of unlawfully attempting to kill Major WJC, Sergeant Major RRM, Lieutenant Colonel HLB, and Sergeant Major CTC while they were in performance of their official duties. Patton is also charged with four counts of assault with a deadly weapon on each of the four individuals, and further charged with one count of using and carrying a firearm during and in relation to a crime of violence.
If convicted, Patton could receive up to 20 years in prison for each charge of unlawfully attempting to kill and up to 20 years for each assault charge. He also could receive a minimum of 10 years for the firearms charge. There is no parole in the federal system. This case is being investigated by the FBI and the NCIS. Assistant U.S. Attorney Fred Godwin is representing the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.Notorious Sex Trafficker Terrence “T-Rex” Yarbrough Sentenced to 536 Months in PrisonRead the Press Release
Memphis, TN – Terrence Yarbrough, a/k/a, “T-Rex,” 38, of Memphis, Tenn., was sentenced to 536 months in federal prison today by United States District Judge S. Thomas Anderson. There is no parole in the federal system. The sentencing follows Yarbrough’s December 2012 conviction by a federal jury on 10 counts of sex trafficking and one count of conspiracy to commit food stamp fraud.
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“Today’s sentence of 536 months in prison ensures Terrence Yarbrough, a ruthless predator who inflicted unspeakable physical and emotional harm upon vulnerable young women, is held accountable for his depraved acts,” said Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee. “We will continue to prosecute those who engage in such reprehensible conduct.”
At the trial, victims recounted a series of violent acts perpetrated by Yarbrough to coerce them into prostituting for him, including beatings with belts, wooden coat hangers, crowbars, padlocks attached to belts, and dog chains. They also testified to being thrown down stairs, having their heads smashed into car doors, having their legs burned with irons, and being scalded with boiling water.
“The horrific physical violence, sexual abuse, and emotional torment suffered by the victims in this case cannot be undone, but this sentence ensures that their violent and evil predator will face the consequences of his actions,” said A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. “The efforts of the FBI and our law enforcement partners have removed a human trafficker from our streets. We will continue to work together to aggressively pursue and bring to justice those who cruelly exploit others for profit, and to restore the rights and dignity of human trafficking victims.”
Evidence presented at trial included the testimony of 10 victims identified in the indictment, as well as several eyewitnesses and investigators. Numerous witnesses testified that Yarbrough repeatedly enticed vulnerable women as young as 15 years old into prostitution with false promises of love, family, and prosperity. Any time a victim refused to engage in prostitution, he resorted to threats, intimidation, and violence. The jury heard testimony that Yarbrough’s pattern of recruitment, exploitation, and violent coercion continued for years before his 2009 arrest in St. Louis.
One of the victims testified that Yarbrough forced her to engage in prostitution the entire time she was pregnant with his child. He frequently beat her on the stomach when she did not want to comply with his demands. He forced her to work as a prostitute in Tunica, MS in her eighth month of pregnancy and induced her labor through a severe beating. Yarbrough drove her back to Memphis and dropped her off at a hospital. The day after she left the hospital following childbirth, Yarbrough forced her to resume prostituting. Sometime later, Yarbrough smashed her on the head with a lamp and kicked out her front teeth when she tried to stop prostituting for him.
Another victim testified that Yarbrough lured her into prostitution by promising to reunite her with their children, and then beat her severely when she insisted on seeing them and refused to continue working. Yarbrough punched her in the face so hard he broke three of her teeth. On another occasion, he beat her knees with a metal pipe and caused injuries that continue to affect her. She also testified that Yarbrough threatened to prostitute their nine-year-old daughter.
The jury heard testimony that one exhausted victim slept through a phone call from a client after serving prostitution clients for days on end with almost no sleep. When Yarbrough found out she missed the call, he smashed her head into a car door, dragged her by the hair to his hotel room, and beat her with his belt. Jurors saw a letter addressed to that victim and signed by Terrence Yarbrough stating that he was proud of how she did not scream while he beat her with the belt.
Witnesses testified that Yarbrough bragged about his beatings of some victims to other victims to let them know what would happen to them if they disobeyed him. Jurors also saw the “T-Rex” logos Yarbrough tattooed on four separate victims, and heard that he claimed that they had been “branded” as his property. Testimony and jail recordings showed that Yarbrough confiscated his victims’ identification documents as well as all their money to make it difficult for them to escape.
Jurors also heard testimony that Yarbrough conspired with his mother, Norma Yarbrough Webb, 66, and Michelle Johnson, 41, to fraudulently obtain food stamp benefits while Yarbrough was incarcerated. Johnson and Webb previously pled guilty to related charges.
“The USDA-Office of Inspector General is committed to the investigation and prosecution of those individuals who fraudulently obtain food stamp benefits. We are very pleased we were able to work with the U.S. Attorney's Office and other law enforcement agencies in this case,” stated Karen Citizen-Wilcox, Special Agent-in-Charge of the Southeast Region for the U.S. Department of Agriculture’s Office of Inspector General.
The case was investigated by the FBI and the U.S. Department of Agriculture Office of Inspector General, with assistance from the St. Louis Police Department. Assistant U.S. Attorney Jonathan Skrmetti and Trial Attorney Benjamin J. Hawk of the United States Department of Justice Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.Amos Patton Charged with Two Felonies Following Shooting at Millington National Guard Recruiting StationRead the Press Release
Memphis, TN – Amos Patton, 42, of Cordova, TN, was charged today in a criminal complaint
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with one count of assault within the maritime and territorial jurisdiction of the United States, and
one count of carrying and using a firearm during and in relation to a federal crime of violence,
announced U.S. Attorney Edward L. Stanton III; Special Agent in Charge of the Memphis
Division of the Federal Bureau of Investigation, A. Todd McCall; Naval Criminal Investigative
Service Special Agent Michael C. Cote; and Millington Police Chief Rita Stanback.
According to the affidavit filed with the complaint, on October 24, 2013 Patton was directed by
his commanders to come to the Tennessee Army National Guard Recruiting Center, located at
5650 Attu, Millington, TN. During this meeting, Patton was notified that he was being relieved
of duty, recommended for reduction in rank, and recommended for separation from the active
guard reserve because of misconduct.
Following the meeting, Patton was directed to return government equipment believed to be in his
government vehicle. When he returned from the car, Patton had in his possession a “fanny pack.”
When he attempted to access the pack, one of the Tennessee Army National Guardsmen yelled
“Gun.”
At that point, a senior non-commissioned officer (NCO) attempted to subdue Patton. Patton was
able to fire his weapon, and rounds struck three Tennessee Army National Guard personnel in
the room. Patton ran from the building, followed by the senior NCO, who caught Patton,
subdued him, and held him until the Millington Police Department arrived and took Patton into
custody. The handgun was recovered at the scene of the shooting.
If convicted, Patton could receive up to 20 years for the assault charge and could receive a
minimum of 10 years for the firearms charge. There is no parole in the federal system. This case
is being investigated by the FBI and the NCIS. Assistant U.S. Attorney Fred Godwin is
representing the government.
The charges and allegations contained in the criminal complaint are merely accusations, and the
defendant is considered innocent unless and until proven guilty.Man Enters Guilty Plea in Large Obion County Marijuana Grow OperationRead the Press Release
Memphis, TN – Ignacio Lazcano-Acosta, 52, pleaded guilty yesterday to one count of
manufacturing and attempting to manufacture marijuana in violation of 21 U.S.C. § 846,
announced United States Attorney Edward L. Stanton III.
According to information presented in court, on October 11, 2011 in Obion County, Tennessee,
officers with the Obion County Sheriff’s Department discovered a large outdoor marijuana grow
containing several acres of marijuana plants that had the appearance of being grown, harvested,
and processed for distribution. DEA agents were able to identify Ignacio Lazcano-Acosta as one
of the persons involved with the marijuana grow operation. Mr. Lazcano-Acosta changed his
plea in a court hearing before Judge J. Daniel Breen yesterday, October 7, 2013.
The potential penalty for this charge is no more than 20 years in federal prison. Lazcano-Acosta
is scheduled to be sentenced by Judge Breen in Jackson on January 10, 2014 at 10:00 a.m. There
is no parole in the federal prison system.
This crime was investigated by the 27th Judicial District Drug Task Force, the Drug Enforcement
Administration, the Tennessee Bureau of Investigation, the Tennessee Highway Patrol, the
Union City Police Department and the Obion County Sheriff’s Office. The case is being
prosecuted by Assistant United States Attorney Victor L. Ivy on behalf of the government.Memphis Police Officer Pleads Guilty to Sex TraffickingRead the Press Release
Memphis, TN – Sean McWhirter, 31, of Memphis, Tennessee pleaded guilty today to one count
of transportation of individuals in interstate commerce for the purpose of prostitution, in
violation of 18 U.S.C. § 2421, announced United States Attorney Edward L. Stanton III.
McWhirter is a five-year veteran of the Memphis Police Department who was serving as a
patrolman at the time of his arrest.
On September 13, 2012, while on duty and in his patrol car, McWhirter agreed to transport three
women to a location in Tunica, Mississippi, for the purpose of prostitution. Subsequently, on
September 16, 2012, while off duty, McWhirter delivered two women from Memphis,
Tennessee, to a hotel in Tunica. Upon entering the room with the women, McWhirter was
arrested by Special Agents and Task Force Officers of the FBI. McWhirter changed his plea in a
court hearing before Judge S. Thomas Anderson today, October 7, 2013.
The penalty for this charge is no more than 10 years in federal prison and a fine of no more than
$250,000. McWhirter is scheduled to be sentenced by Judge Anderson on January 7, 2014 at
1:30 p.m. There is no parole in the federal prison system.
This crime was investigated by the Tarnished Badge Task Force, which is comprised of
investigators from the Federal Bureau of Investigation, Memphis Police Department, and Shelby
County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Brian
K. Coleman on behalf of the government.United States Supreme Court Grants Certiorari in Criminal Case from West TennesseeRead the Press Release
Memphis, TN – This morning, the United States Supreme Court granted the petition of the
United States for a writ of certiorari in United States v. Castleman, a criminal case originating in
the Western District of Tennessee, announced U.S. Attorney Edward L. Stanton III.
In August 2009, a federal grand jury in Memphis returned a superseding indictment charging
James Castleman with two counts of possessing a firearm after having been convicted of a
misdemeanor crime of domestic violence, in violation of 18 U.S.C. § 922(g)(9). The district
court granted the defendant’s motion to dismiss these charges in April 2010, on the basis that
defendant’s prior Tennessee domestic assault conviction was not “a misdemeanor crime of
domestic violence,” as that term is defined in federal law.
The United States appealed, and in September 2012 the U.S. Court of Appeals for the Sixth
Circuit affirmed the district court’s ruling, with each Judge of the three-member panel writing
separately. The government sought rehearing by the en banc Court of Appeals, but the court
declined to reconsider its decision.
In May 2013, the United States filed a petition for a writ of certiorari from the Supreme Court.
The Court granted that petition today and will consider the case during its 2013 term, which
begins this Monday, October 7, 2013.
Assistant U.S. Attorney Daniel French and Criminal Appellate Chief Kevin G. Ritz represented
the United States in the lower courts. The Office of the Solicitor General is representing the
government in the Supreme Court.Social Security Claims Representative Charged with Two Counts of Bribery, Two Counts of ExtortionRead the Press Release
Memphis, TN – Montrell Levelle Arnold, 42, of Memphis, TN, was indicted yesterday by a federal grand jury on two counts of extortion and two counts of bribery, announced U.S. Attorney Edward L. Stanton III.
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According to the facts alleged in the indictment, on at least two occasions while Arnold was working as a Claims Representative for the United States Social Security Administration (SSA), he offered to “process” Supplemental Security Income (SSI) payment claims for individuals in exchange for a fee. Several SSI beneficiaries agreed to pay the defendant a fee to process the benefit payments.
After the benefit payments had been electronically deposited to the beneficiary’s electronic accounts, Arnold would contact the individuals by telephone and by text message to confirm receipt of the payment and to make arrangements to obtain his “processing fee.”
If convicted, Arnold faces up to 20 years in prison and a fine of up to $250,000 on each extortion charge, and up to 15 years in prison and a fine of up to $250,000 on each bribery charge. In addition, Arnold may be disqualified from holding any office of honor, trust or profit with the United States.
Investigators suspect that Arnold may have taken advantage of other individuals during his employment with the SSA. If anyone has any additional information, they are urged to contact the SSA Office of the Inspector General at 855-260-6353. This case is being investigated by the United States Social Security Administration, Office of the Inspector General. Assistant U.S. Attorney Leetra Harris is representing the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Ernest Goodman Sentenced to 300 Months in Prison Following Robbery SpreeRead the Press Release
Memphis, TN – The final member of a criminal gang responsible for at least three bank robberies and two business robberies was sentenced on Monday to 300 months in federal prison, announced U.S. Attorney Edward L. Stanton III.
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According to facts revealed in the indictment and during plea and sentencing hearings, from July 21 to 27, 2011, Ernest Goodman, 25, of Memphis, TN, was part of a gang that robbed three Bank of America branches across the city. Goodman himself also robbed a Pizza Hut located on Elvis Presley Blvd. and a Church’s Chicken restaurant on Summer Ave.
On at least one occasion during their crime spree, members of the gang discharged firearms and pistol-whipped innocent victims. They also robbed victims personally, in addition to robbing the businesses.
On May 16, 2013, Goodman pleaded guilty to two counts of bank robbery, one count of using a firearm during a crime of violence, and two counts of robbery affecting interstate commerce. U.S. District Judge S. Thomas Anderson sentenced Goodman to 84 months for using a firearm during a crime of violence and to 216 months for the other four charges. The four robbery charges are to be served concurrently, and the firearm charge is to be served consecutively, for a total of 300 months. Judge Anderson also ordered Goodman to pay $23,217 in restitution.
The five other members of the gang pleaded guilty to various charges. They are:
Thomas Vaughn, 28, of Memphis. Vaughn pleaded guilty on July 23, 2012, to three counts of bank robbery. On November 7, 2012, Judge Anderson sentenced him to a total of 300 months in prison and ordered restitution in the amount of $37,054.
Mario Ewing, 32, of Memphis. Ewing pleaded guilty on July 12, 2012, to three counts of bank robbery and three counts of using a firearm during a crime of violence. On August 8, 2013, Judge Anderson sentenced him to a total of 240 months in prison and ordered restitution in the amount of $37,054.
Edward Jones, 25, of Memphis. Jones pleaded guilty on August 31, 2012 to two counts of bank robbery and one count of using a firearm during a crime of violence. On January 29, 2013, Judge Anderson sentenced him to a total of 240 months in prison and ordered restitution in the amount of $32,908.
Deandre Taylor, 25, of Memphis. Taylor pleaded guilty on November 15, 2012 to one count of bank robbery and one count of using a firearm during a crime of violence. On April 16, 2013, Judge Anderson sentenced him to a total of 120 months in prison and ordered restitution in the amount of $13,841.
Joshua Shelton, 19, of Memphis. Shelton pleaded guilty on July 13, 2012, to one count of bank robbery and one count of using a firearm during a crime of violence. On October 31, 2012, Judge Anderson sentenced him to a total of 84 months in prison and ordered restitution in the amount of $13,841.
This case was investigated by the Safe Streets Task Force, comprised of law enforcement officials from the Federal Bureau of Investigation, the Memphis Police Department, the Shelby County Sheriff’s Office, the Germantown Police Department, and the Bartlett Police Department. Assistant U.S. Attorney Lorraine Craig represented the government.Memphis Man Allan D. Cooper Pleads Guilty to Wire FraudRead the Press Release
Memphis, TN – Allan D. Cooper, 66, of Memphis, TN, pleaded guilty today to one count of wire fraud before United States District Judge John T. Fowlkes, Jr., announced U.S. Attorney Edward L. Stanton III.
According to the one-count criminal information and statements made in court, between approximately October 2011 and May 2013, Cooper defrauded six individuals of $395,000. According to the information, Cooper made various false and fraudulent statements, representations and promises to induce the victims to give him monies as either a “loan” or an “investment.”
Cooper told some of his victims about an investment opportunity with an old friend of his named “Charlie” and that if the victims would give Cooper funds to invest with Charlie they would receive a substantial return. In these instances Cooper frequently gave the victims a post-dated check payable in an amount that represented the principal and the return on the investment. When the victim discovered that the check was worthless, Cooper made other false representations and promises to repay.
Cooper told other victims that he was the owner of Cooper Chemical Company and that if they would loan him funds he would pay them back with substantial interest. In fact, “Cooper Chemical Company” was inactive and not conducting any business. Cooper also falsely represented that if a victim would loan him funds, they would be repaid with interest through disbursements from a trust in which defendant Cooper was a named beneficiary.
Cooper faces up to 20 years in federal prison and a fine of up to $250,000. He is scheduled to be sentenced by Judge Fowlkes on January 10, 2014, at 9:30 a.m. There is no parole in the federal prison system.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carroll L. Andre III is representing the government.Sixteen Indicted, Fourteen Apprehended in Early Morning Drug SweepRead the Press Release
Memphis, TN – An early morning sweep by law enforcement officers from the Federal Bureau of Investigation and numerous local law enforcement agencies resulted in the apprehension of 14 individuals involved in a drug distribution conspiracy, announced U.S. Attorney Edward L. Stanton III and A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation.
According to a federal grand jury indictment unsealed today, the following individuals did unlawfully and knowingly conspire to possess and distribute more than five kilograms of cocaine:Osiel Lopez-Acuna, a/k/a “Buddha,” 34, of Memphis;
Christopher Love, 38, of Memphis;
Gilberto Conde, a/k/a “Gilberto Conde-Sanchez,” age unknown, of Memphis;
Enrique Rodriguez, a/k/a “Kike,” age unknown, of Memphis;
Alfonso Perez Hernandez, a/k/a “Kora,” 45, of Memphis;
Francisco Javie Valtierra-Zuni, a/k/a “Fabian Avila-Prieto,” age unknown, of Memphis;
David Martinez, age unknown, of Memphis;
Jose Trinidad Arteaga, a/k/a “Pelon,” a/k/a “Dreamer,” 30, of Memphis;
Julius Hull, a/k/a “Trey,” 36, of Memphis;
Gregory Ledronte Miller, a/k/a “Bebe,” 34, of Memphis;
Daniel Morales, age unknown, of Memphis;
Benigno Morales Vasquez, a/k/a “Muchi,” 39, of Memphis;
Aquilino Gonzalez, 30, of Memphis;
Terry Greer, 40, of Memphis;
Otis Booth, a/k/a “Otis Boothes,” age unknown, of Memphis;
and Correy Dewayne Morris, 35, of Memphis.In addition, Gilberto Conde was indicted for one count of possession of a firearm while in the country illegally and one count of possession of a firearm in the furtherance of drug trafficking. Otis Booth and Enrique Rodriguez remain at large.
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Officials also seized approximately 10 guns, night vision goggles, body armor, approximately $125,000 in cash, and approximately two kilograms of suspected cocaine. This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
This case is being investigated by the FBI Safe Streets Task Force, Shelby County Sheriff's Office, Memphis Police Department, Bartlett Police Department, Germantown Police Department and the DeSoto County Sheriff's Office. Assistant United States Attorney Daniel French is representing the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Bolivar Man Convicted of Production and Possession of Child PornographyRead the Press Release
Jackson, TN – John McKinney, 71, of Bolivar, TN was convicted today of four counts of producing child pornography, and one count of possession of child pornography, announced U.S. Attorney Edward L. Stanton III.
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It took the jury approximately 10 minutes to find McKinney guilty on all charges. He faces a mandatory minimum sentence of 15 years in prison for each of the production counts and a minimum of 10 years on the possession count. He could receive up to 140 years in prison. There is no parole in the federal prison system.
“The jury’s verdict clearly demonstrates that this community will not tolerate predatory acts like the ones carried out by John McKinney,” said U.S. Attorney Stanton. “We have an obligation to protect our most vulnerable citizens – young, innocent children. This office, working together with our law enforcement partners, will relentlessly pursue anyone who commits such heinous crimes and ensure that they face the full consequences of the law.”
According to facts revealed during the trial, McKinney took sexually explicit pictures of girls as young as nine years old while the girls were visiting at his home. According to the sworn testimony of the mother of one victim, her younger daughter saw sexually explicit photos on McKinney’s computer. Investigators confiscated more than 87 CDs from a building on McKinney’s farm that contained pictures that he had taken depicting child pornography.
On June 25, 2013, McKinney was convicted by a federal jury of four counts of being a felon in possession of a firearm or ammunition. The guns and ammunition were discovered during the search of his home that revealed the pornographic photos. He is awaiting sentencing in that case and is facing up to 10 years in prison and a $250,000 fine for each count.
This case is being investigated by the Hardeman County Sheriff’s Office, the Jackson Police Department and the FBI in Jackson. Assistant U.S. Attorneys Deb Ireland and James Powell represent the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of 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."Millington Man Michael A. Lilley Charged with Sex Trafficking of High School TeensRead the Press Release
Memphis, TN – Michael A. Lilley, 49, of Millington, TN was charged today in a criminal complaint with sex trafficking of minor girls from as many as three high schools in West Tennessee, announced U.S. Attorney Edward L. Stanton III and A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation.
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According to facts revealed in a sworn affidavit filed with the complaint, Lilley was recruiting girls as young as 15 years old to work as prostitutes at his home in Millington. Lilley and another individual would provide alcohol and drugs for the girls, who would hang out at an enclosure in his back yard referred to as the “back house.”
One of the victims told authorities that Lilley would bring men to his home for the purpose of engaging in prostitution with the girls. The men paid $60 or $75 per session with the girls, and Lilley gave the girls approximately $30 per customer.
Another victim told authorities that she had sex with men at Lilley’s home, at the homes and trailers of men Lilley set her up to meet, and in a van owned by Lilley while parked in parking lots of various restaurants.
The girls were recruited out of various high schools by a minor boy who advised authorities that he had been working for Lilley for six months. He was paid $20 out of every $100 made by the girls.
Officials first became aware of Lilley’s actions when one of the girls confided what was going on to the school crisis counselor at one of the high schools. The counselor then reported it to the Shelby County Sheriff’s Office.
“The activities alleged in the sworn affidavit, if proven to be true, are reprehensible,” said U.S. Attorney Stanton. “This office remains committed to working with our law enforcement partners to prosecute and bring to justice anyone who exploits children for profit.”
Lilley is scheduled for a detention hearing on Thursday, September 12, 2013. If convicted he faces a minimum of 10 years in prison and a maximum of up to life in prison on each charge.
This case is being investigated by the FBI. Executive Assistant U.S. Attorney Larry Laurenzi and Assistant U.S. Attorney Deb Ireland are representing the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of 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."
The charges and allegations contained in the criminal complaint and the affidavit are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Memphis Man Sentenced to 33 Months in Prison for Tax FraudRead the Press Release
Memphis, TN – Terry Green, 60, of Memphis, TN, was sentenced yesterday by U.S. District Judge John T. Fowlkes to 33 months in prison for tax fraud, announced U.S. Attorney Edward L. Stanton III.
According to facts revealed in the indictment and during the sentencing hearing, from 2005 to 2009, Green and his associate, Herman Shaw, ran several tax preparation businesses in Memphis (Computax and Shaw's Tax Express). Through these businesses, Green and Shaw routinely filed false federal income tax returns for their clients and generated fees for their tax businesses as a result. The returns falsely reflected losses and expenses arising from fictitious home-based businesses, such as cutting hair and landscaping. This would inflate the refund amount for the defendants' clients.
As a result of the scheme, numerous false returns were approved by the IRS, resulting in over $400,000 of loss to the United States Government. In June, Shaw, 33, of Cordova, TN, was sentenced to 26 months in prison. Both defendants were ordered to pay restitution in the amount of $404,078.
This case was investigated by IRS-CID and was prosecuted by Assistant United States Attorney Stephen Hall on behalf of the government.Victoria Wallace Sentenced to 216 Months in Prison for Child Sex TraffickingRead the Press Release
Memphis, TN – Victoria Wallace, a/k/a “Prune the Goon,” 20, of Memphis, TN, was sentenced Friday to 216 months in federal prison for her role in a child sex trafficking conspiracy, announced U.S. Attorney Edward L. Stanton III.
At the sentencing hearing, Senior U.S. District Judge Jon Phipps McCalla heard testimony that Wallace was a high-ranking member of the Piru Street gang who used force and threats of force to control her victims. One of her juvenile victims testified that she saw Wallace drag a woman by her hair while beating her. That juvenile also identified threatening text messages that Wallace sent her during the investigation of the case.
The juvenile explained that Wallace drove her and three other minors to New Orleans for the purpose of having them prostitute. Wallace also put minors to work in prostitution in Memphis, according to the juvenile. The juvenile testified that Wallace kept the money her victims made and threatened them if they refused to work.
Wallace pled guilty on January 2, 2013, to a child sex trafficking conspiracy charge. There is no possibility of parole in the federal system.
“Wallace’s sentence of 18 years in federal prison should send an unequivocal message: if you sexually exploit a child for profit, you will be held accountable,” said United States Attorney Stanton. “Working with our law enforcement partners, we will remain relentless in doing whatever it takes to protect our most vulnerable citizens – our children – from those who engage in sex trafficking.”
This case was investigated by the Federal Bureau of Investigation working in conjunction with the Memphis Police Department. It was prosecuted by Assistant United States Attorney Jonathan Skrmetti and Trial Attorney Keith Becker from the U.S. Department of Justice Criminal Division’s Child Exploitation and Obscenity Section.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of 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."Armed Career Criminal Gets 15 Years in Prison After Brandishing Firearm at FBI AgentRead the Press Release
Memphis, TN – Eugene Bernardini, 38, of Olive Branch, MS was sentenced Friday evening by U.S. District Judge Samuel H. Mays to 15 years in federal prison for being a convicted felon in possession of ammunition, announced U.S. Attorney Edward L. Stanton III.
According to facts revealed during the sentencing hearing, on November 23, 2012, a Federal Bureau of Investigation (FBI) Special Agent was riding in a car with a friend and the friend’s 12-year-old son on Hacks Cross Road in Memphis, when their vehicle was struck by Bernardini’s vehicle. The FBI agent recommended to his friend that he pull into a parking lot. The driver and the Special Agent exited the vehicle, at which time Bernardini pulled a pistol and pointed it at the agent’s midsection. The FBI agent immediately took possession of the pistol and ordered Bernardini to the ground. Bernardini refused to comply and advanced toward the agent, saying “you won’t shoot.” The gun failed to fire, and the agent ejected the magazine from the weapon.
Bernardini then pulled a knife and advanced on the agent, who discarded the pistol to have his hands free to defend himself. While holding the agent at knife-point, Bernardini grabbed the pistol from the ground, pointed it at the driver of the vehicle who had come to the agent’s aid and then fled the scene. The police were called to the scene by an employee of a nearby business who witnessed the incident. Though the pistol was never recovered, the ejected magazine and ammunition left on the scene were tagged by Memphis Police Department officers, and Bernardini was arrested later that evening in Olive Branch, Mississippi.
Based on his prior convictions for aggravated robbery, robbery and possession of controlled substances with the intent to distribute, Bernardini was sentenced to the 15-year sentence required by the Armed Career Criminal Act. There is no possibility of parole.
This case was investigated by the Project Safe Neighborhoods Unit. Assistant U.S. Attorney Jennifer Webber represented the government.Memphis Police Officer James Erwin Indicted for Being an Unlawful User of Cocaine in Possession of A FirearmRead the Press Release
Memphis, TN – James Erwin, 39, of Memphis, TN, an officer with the Memphis Police
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Department, was indicted today by a federal grand jury for possessing a firearm while being an
unlawful user of, and addicted to, cocaine base.
According to a criminal complaint filed on August 28, 2013, agents with the Bureau of Alcohol,
Tobacco, Firearms and Explosives interviewed Erwin, who admitted to using a controlled
substance for four months, including August 27, 2013, when he took his work-issued Sig Sauer
pistol to a friend’s house. An individual advised Memphis Police Department officers that he
has sold cocaine base to Erwin for several years, and that on August 27, 2013, that individual
took several of Erwin’s personal items as security for Erwin’s crack cocaine debt.
If convicted, Erwin faces up to ten years in prison, a fine of up to $250,000 and supervised
release of up to three years. This case was investigated by the Project Safe Neighborhoods
initiative, which is made up of officers from the Memphis Police Department (MPD), the Shelby
County Sheriff’s Department (SCSD), and the Bureau of Alcohol, Tobacco, Firearms, and
Explosives (ATF). Assistant U.S. Attorney Jennifer Webber is representing the government.
The charges and allegations contained in the indictment are merely accusations, and the
defendant is considered innocent unless and until proven guilty.Craig Michael Barbee Sentenced to 30 Years in Prison for Felony Firearms ViolationRead the Press Release
Jackson, TN – Craig Michael Barbee, 40, of Dyersburg, TN, was sentenced today to 360 months
in federal prison for being a previously convicted felon in possession of a firearm, announced
U.S. Attorney Edward L. Stanton III.
Barbee’s sentence comes as a result of his involvement in a May 2012 robbery at the
Dollar General Store in Friendship, Tennessee, which resulted in the shooting of Friendship
Police Chief Bill Garrett. Barbee was found guilty in state court of attempted second degree
murder, especially aggravated robbery, two counts of aggravated assault and a felony firearms
charge. He received a 106-year sentence in that case. The federal case arises from the day
following the shooting, where Barbee was apprehended and found to be in possession of a
firearm. Barbee’s federal sentence is concurrent to his state sentence.
“Today’s sentence of 30 years, without the possibility of parole, hopefully brings some
measure of relief to Police Chief Garrett, his family and close friends,” said U.S. Attorney
Stanton. “Any attempt on someone’s life is horrific, but the fact that Mr. Barbee was brazenly
attempting to take the life of a law enforcement official underscores the extreme danger he posed
to the greater community.”
This case was investigated by the Federal Bureau of Investigation, Crockett County
Sheriff’s Department, Lauderdale Sheriff’s Department, and the Friendship Police Department.
Assistant United States Attorney Victor L. Ivy prosecuted this case on behalf of the United
States.Springfield, Missouri Financial Advisor Nadia Cavner Sentenced for Felony Interstate Stalking ChargeRead the Press Release
Memphis, TN – Nadia Cavner, 53, of Springfield, MO, was sentenced today to five years of
probation, including six months home confinement, as well as four hours per month of
community service over the course of the first two years of her probation. The two victims,
fourth year medical students preparing for their upcoming fellowships, expressed to the court
their desire for closure to what has been a nearly two year ordeal. U.S. District Court Judge John
T. Fowlkes, Jr., honored the victims’ request for closure in accepting the terms of the plea
agreement, also imposing the condition of home confinement. The sentencing follows Cavner’s
plea to a criminal information charging her with one felony count of violating the federal
interstate stalking statute, announced U.S. Attorney Edward L. Stanton III.
According to the information and facts revealed during her sentencing hearing, from July 9,
2011, until November 15, 2011, Cavner, and individuals employed by her, traveled from
Springfield, MO to Memphis with the intent to injure, harass, or intimidate her daughter’s former
boyfriend and his new girlfriend. These actions caused substantial emotional distress to the
individuals, their families, and close acquaintances.
As stated at her change of plea hearing, Cavner utilized multiple means to stalk and harass the
victims including making and causing others to make harassing phone calls; leaving anonymous
notes designed to harass and intimidate the victims; having the victims followed during trips;
hiring people to disrupt the victims’ relationship; and paying for an associate to temporarily
move to Memphis for the purpose of conducting surveillance upon the victims. In addition,
Cavner sought to have electronic listening devices installed in the victims’ homes.
Cavner will be required to attend counseling as part of the terms of probation. This case was
investigated by the FBI. Assistant United States Attorney Brian K. Coleman is prosecuting this
case on behalf of the government.
# # # #Drug Trafficking Ringleader Craig Petties Sentenced to Life in Federal PrisonRead the Press Release
Memphis, TN – Craig Petties, 36, of Memphis, TN was sentenced today to nine life sentences in federal prison by United States District Judge Samuel H. Mays, announced U.S. Attorney Edward L. Stanton III.
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In 2009, Petties pleaded guilty to 19 charges related to his role as the ringleader of one of the largest drug trafficking organizations ever prosecuted in West Tennessee. Petties and the other members of his criminal racketeering enterprise conspired with cocaine traffickers in Mexico, Texas, Mississippi, North Carolina, Georgia, Tennessee, and elsewhere. As part of the conspiracy, cocaine was prepared, packaged and/or stored, prior to distribution to buyers in “stash houses.” The defendant and the co-conspirators used these “stash houses” to avoid detection by law enforcement authorities.
It was further part of the conspiracy that the defendants and their co-conspirators sorted, counted, packaged, and stored large amounts of cash derived from the sale of controlled substances in various co-conspirators’ premises in the Western District of Tennessee. The co-conspirators delivered large amounts of currency derived from the sale of cocaine from the Western District of Tennessee and elsewhere to Texas and Mexico. In order to facilitate continued drug trafficking and in order to prevent others from cooperating with law enforcement authorities, it was further part of the conspiracy that the defendant and the co-conspirators did kill other people. Petties pleaded guilty to murder in aid of racketeering and conspiracy to commit murder for hire, and he admitted to a role in at least four murders. Petties also later pleaded guilty to a separate charge of possessing a weapon while in custody at the Federal Correctional Institution in Memphis.
Over 40 people have been charged and convicted as part of this investigation. The sentencing of Petties represented the end of these successful prosecutions in the U.S. District Court for the Western District of Tennessee.
“Craig Petties was the ringleader of one of the largest and most violent criminal organizations to ever operate in the state of Tennessee. The court’s sentence of life without the possibility of parole holds Petties accountable for his ruthless acts,” said U.S. Attorney Stanton. “It should also send a clear message to those who distribute poison into our communities and protect their criminal activity by any means necessary: you will not get away with it, and you will be prosecuted to the fullest extent of the law. I hope the sentence imposed today can provide a meaningful measure of closure to the families of those murdered and victimized by the Petties organization, as well as the community as a whole.”
“The dismantling of the Petties organization brought his reign of terror to an abrupt end. Petties, who was dubbed as a powerful ‘drug lord,’ trafficked vast quantities of cocaine and marijuana and was one of the most violent and notorious drug dealers in Memphis history,” said Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division. “Despite his power, criminal protection and violent methods of operation, step by step, the government successfully dismantled his once-thriving criminal network. This life sentence would not have been possible without the high-level of cooperation between federal, state, local and Mexican law enforcement authorities.”
This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
Because there is no parole in the federal prison system, Petties will spend the rest of his life in prison. This case was investigated by the Drug Enforcement Administration, the United States Marshals Service, the Memphis Police Department, the Shelby County Sheriff’s Department and the Olive Branch Police Department. The case is being prosecuted by Assistant United States Attorney David Pritchard on behalf of the government.Two-Count Indictment Charges Texas Man with Attempting to Open Aircraft Door While in FlightRead the Press Release
Memphis, TN – Randolph B. Robinson, 63, of Austin, TX, was indicted today on two counts related to his actions on board an AirTran flight between Baltimore, MD and Austin, announced U.S. Attorney Edward L. Stanton III.
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Robinson is charged with knowingly and willfully attempting to damage, destroy, disable and wreck an aircraft, specifically, AirTran Airways Flight 265, by attempting to open exits while the aircraft was in flight.
Robinson is also charged with knowingly interfering with the duties of the flight crew by attempting to open the rear exit doors of the aircraft while in flight. The indictment alleges that his actions caused the flight attendants to be forced to physically remove him from the doors and that the flight crew was forced to divert the aircraft to Memphis.
If convicted, Robinson faces up to 20 years in prison, a fine of up to $250,000 and supervised release of up to five years for each count. This case was investigated by the Joint Terrorism Task Force, which is led by the Federal Bureau of Investigation and comprised of federal, state and local law enforcement agencies. Assistant U.S. Attorney Frederick Godwin is representing the government.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Dresden Businessman Indicted for Distribution and Possession of Child PornographyRead the Press Release
Jackson, TN – Craig Elliot Woodward, 48, of Dresden, TN, was indicted today by a federal grand jury for one count of distributing child pornography and one count of possessing child pornography, announced U.S. Attorney Edward L. Stanton III.
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The indictment alleges that on or about January 4, 2013, Woodward, the owner of Clockwork Screen Printing and Graphics in Dresden, knowingly distributed computer image files using a computer connected to the internet. These image files depicted a minor engaged in sexually explicit conduct.
The indictment further alleges that on or about May 5, 2013, Woodward possessed two laptop computer containing image files of minors engaged in sexually explicit conduct. Some of the children depicted in the files were less than 12 years old.
If convicted, Woodward faces up to 20 years in prison for each count and a fine of up to $250,000 for each count. Following his sentence, Woodward could be under supervised release for the rest of his life.
The case was investigated by the FBI office in Jackson, the Dresden Police Department, the Martin Police Department and the Cookesville Police Department. Assistant U.S. Attorney Debra Ireland is representing the government.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative of 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."
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Biggers Named Prevention and Reentry Coordinator as Part of “Smart on Crime” InitiativeRead the Press Release
Memphis, TN – U.S. Attorney Edward L. Stanton III today announced the appointment of Assistant U.S. Attorney C. David Biggers, Jr. as the Western District’s Prevention and Reentry Coordinator.
On August 12, 2013, in a speech to the American Bar Association’s Annual Convention, U.S. Attorney General Eric H. Holder, Jr. unveiled his “Smart on Crime” initiative, designed to modernize the federal criminal justice system. One key component of that plan calls for U.S. Attorneys to designate a Prevention and Reentry Coordinator within each of their offices to focus on prevention and reentry efforts.
Biggers has served as a career prosecutor, first as an Assistant District Attorney in Jefferson County, Alabama from 2006-2008, where he began his work in juvenile court. After serving as lead methamphetamine prosecutor, Biggers was appointed as a Special Assistant U.S. Attorney (SAUSA) for the Northern District of Alabama where he served in the Violent Crimes Division.
While serving as a SAUSA in Birmingham, Biggers was named as the U.S. Attorney’s Office representative to the Drug Court Program. His responsibilities included planning, organizing and developing the program and being actively involved in the decision-making process on drug court participants’ action plans, sanctions and rewards.
Biggers received his undergraduate degree from Rhodes College in Memphis and his law degree from the University of Alabama School of Law in Tuscaloosa, Alabama.
“David Biggers is a dedicated public servant who is uniquely qualified to serve as this district’s first Prevention and Reentry Coordinator,” said U.S. Attorney Stanton. “He has the sound judgment and experience needed to assist in implementing this critically important tenet of U.S. Attorney General Eric Holder’s ‘Smart on Crime’ initiative in West Tennessee.”# # # #
U.S. Attorney General Announces "Smart on Crime" InitiativesRead the Press Release
Memphis, TN – U.S. Attorney General Eric H. Holder, Jr. today introduced a new initiative designed to reform the criminal justice system for the 21st century, announced U.S. Attorney Edward L. Stanton III.
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“By targeting the most serious offenses, prosecuting the most dangerous criminals, directing assistance to crime ‘hot spots,’ and pursuing new ways to promote public safety, deterrence, efficiency, and fairness – we can become both smarter and tougher on crime,” said Attorney General Holder in remarks to the American Bar Association’s Annual Convention in San Francisco.
“Attorney General Holder’s ‘Smart on Crime’ initiative provides a measured approach to modernizing the criminal justice system and offers a sensible alternative to the one-size-fits-all policy proven to be flawed and ineffective,” said U.S. Attorney Stanton. “The U.S. Attorney’s Office, court personnel, and our law enforcement partners in the Western District of Tennessee have already been working to implement many of the principles outlined in the initiative, such as launching re-entry and drug courts and using diversion as a resource when warranted for non-violent offenders. This bold approach will allow federal prosecutors to not only be more efficient and effective at deterring crime and reducing recidivism, but also more consistent with our nation’s commitment to treating all Americans as equal under the law.”
“Smart on Crime” is a series of directives to U.S. Attorney Offices across the nation designed to redirect efforts and assets toward more measured, individualized examinations of both the crime and the criminal. The five guiding principles of “Smart on Crime” are:
I. PRIORITIZE PROSECUTIONS TO FOCUS ON THE MOST SERIOUS CASES.
Given scarce resources, federal law enforcement efforts should focus on the most serious cases that implicate clear, substantial federal interests. Currently, the Department’s priorities are:
1. Protecting Americans from national security threats
2. Protecting Americans from violent crime
3. Protecting Americans from financial fraud
4. Protecting the most vulnerable members of society
Based on these federal priorities, the Attorney General is, for the first time, requiring the development of district-specific guidelines for determining when federal prosecutions should be brought. This necessarily will mean focusing resources on fewer but the most significant cases, as opposed to fixating on the sheer volume of cases.
II. REFORM SENTENCING TO ELIMINATE UNFAIR DISPARITIES AND REDUCE OVERBURDENED PRISONS.
Prisons are over-capacity, and the rising cost of maintaining them imposes a heavy burden on taxpayers and communities. At the state level, costs for running corrections facilities have roughly tripled in the last three decades, making it the second-fastest rising expense after Medicaid. At the federal level, the Bureau of Prisons comprises one-third of the Justice Department’s budget.
This requires a top-to-bottom look at our system of incarceration. For many non-violent, low-level offenses, prison may not be the most sensible method of punishment. But even for those defendants who do require incarceration, it is important to ensure a sentence length commensurate with the crime committed. Our policies must also seek to eliminate unfair sentencing disparities.
III. PURSUE ALTERNATIVES TO INCARCERATION FOR LOW-LEVEL, NON-VIOLENT CRIMES.
Incarceration is not the answer in every criminal case. Across the nation, no fewer than 17 states have shifted resources away from prison construction in favor of treatment and supervision as a better means of reducing recidivism.
Federal law enforcement should encourage this approach. In appropriate instances involving non-violent offenses, prosecutors ought to consider alternatives to incarceration, such as drug courts, specialty courts, or other diversion programs. Accordingly, the Department will issue a “best practices” memorandum to U.S. Attorney Offices encouraging more widespread adoption of these diversion policies when appropriate.
IV. IMPROVE REENTRY TO CURB REPEAT OFFENSES AND RE-VICTIMIZATION.
After prison, recidivism rates are high. A reduction in the recidivism rate of even one or two percentage points could create long-lasting benefits for formerly incarcerated individuals and their communities.
To lead these efforts on a local level, the U.S. Attorney in the Western District of Tennessee will designate a prevention and reentry coordinator to focus on prevention and reentry efforts. As part of this enhanced commitment, Assistant U.S. Attorneys will be newly encouraged to devote time to reentry issues in addition to casework.
V. ‘SURGE’ RESOURCES TO VIOLENCE PREVENTION AND PROTECTING MOST VULNERABLE POPULATIONS.
Even as crime levels have fallen, many of our communities in the Western District of Tennessee still suffer from alarming rates of homicides, shootings and aggravated assaults. Confronting this problem and its root causes with a holistic approach remains a priority for the Department of Justice. By exploring cost-effective reforms to our prison system, it will allow law enforcement to redirect scarce federal resources towards the priority of violence prevention.
Under a new memorandum issued by the Deputy Attorney General, U.S. Attorneys will update anti-violence strategies that are specific to their district. With multiple federal, state, and local agencies involved in the fight against violent crime, strong relationships and robust information sharing are critical to achieve common goals and to avoid the unnecessary duplication of competing resources and efforts.Contract Counselor for Shelby County Juvenile Court Sentenced to Three Years for Health Care Fraud SchemeRead the Press Release
Memphis, TN – Mechell D. Toles, 44, of Collierville, TN, was sentenced today by United States District Court Chief Judge Jon Phipps McCalla to three years in prison following her guilty plea to one count of health care fraud, announced U.S. Attorney Edward L. Stanton III.
“While serving in a position of trust and being paid to help at-risk children, Dr. Toles instead brazenly helped herself to more than $600,000 of taxpayer monies by manipulating our nation’s health-care benefits system,” said U.S. Attorney Stanton. “Today’s sentence should serve as a clear reminder that there are stiff and severe consequences for violating the public’s trust.”
According to the Information and to statements made at the guilty plea and today’s sentencing, Toles – who has an undergraduate degree from Purdue University, a masters degree from the University of Mississippi, and a Ph.D. from Walden University – received referrals from the Shelby County Juvenile Court, which was the primary source of her counseling clientele. Hundreds of Toles’ patients were enrolled in TennCare, Tennessee’s Medicaid program. In western Tennessee, TennCare operates through two managed care organizations: Blue Care, which is associated with Blue Cross Blue Shield; and AmeriChoice, which is associated with United Health Care.
The investigation began after AmeriChoice audited Toles based on her high volume of counseling services and, upon finding incomplete documentation in her files, provided her with training on proper documentation and billing. The TennCare Office of Integrity referred the audit and inquiry into Toles’ billing practices to the Tennessee Bureau of Investigation on suspicion that she had engaged in health care fraud.
Investigators obtained billing information from the managed care organizations, reviewed correspondence and documentation from Juvenile Court, interviewed patients, surveilled Toles, and obtained a search warrant. The investigation revealed numerous occasions for which Toles billed for more than 24 hours of services in a single day. It also revealed instances in which Toles billed for counseling sessions on dates before patients had been referred to her and on dozens of dates after she had discharged patients. Toles’ files were largely devoid of any documentation of services provided, and patient records showed blank sheet after blank sheet for the purported dates of service. Based on billings for which there was no documentation of any services, investigators estimate at least $602,769.42 was billed by Toles and paid by TennCare for which no valid services were actually rendered.
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After her offices were searched, Toles was interviewed and admitted that her patient files were “horrible” and that only one or two were correct. She also admitted that she billed for services on dates when no services were provided. She claimed she was not sure how much money she had obtained, that she wanted to pay it back, that she did not have any particular need for the money – which had been spent – and that she knew at the time it was wrong but that it was just easy to do.
"The State of Tennessee has no tolerance for health care fraud. This is an example of a provider taking advantage of the system even when she knew it was wrong,” said Tennessee Bureau of Investigation Director Mark Gwyn. “TBI is glad to see the truth come to light and Dr. Toles appropriately sentenced."
In addition to the three-year prison sentence, Judge McCalla ordered Toles to pay $602,769.42 in restitution and to serve three years of supervised release. There is no parole in the federal prison system. This investigation was conducted by the Tennessee Bureau of Investigation. Assistant U.S. Attorney John Fabian represented the government.Memphis Man Sentenced to 292 Months in Prison for Carjacking, Weapons PossessionRead the Press Release
Memphis, TN – Mario Evans, 33, of Memphis, TN, was sentenced to 292 months in prison on Friday following his guilty plea to carjacking, using a firearm during a violent crime, and being a felon in possession of a firearm, announced U.S. Attorney Edward L. Stanton III.
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According to facts presented at sentencing, on July 18, 2008 Evans and an accomplice carjacked a woman in the parking lot of the Walmart located at 3950 Austin Peay Highway, Memphis. Evans brandished a semi-automatic pistol and ordered the woman to exit her 2007 Ford Escape and give him the keys. After she exited the vehicle, Evans demanded her purse and struck the woman on the hand with the pistol, breaking her little finger.
The victim’s son attempted to intervene and Evans pointed the gun at his face and threatened him. Evans and his accomplice then left the scene in the victim’s vehicle. They were picked up shortly thereafter by Memphis Police Department officers.
On August 11, 2011, Evans appeared before U.S. District Judge Samuel H. Mays, Jr. and pleaded guilty to one count of being a felon in possession of a firearm, one count of carjacking, and one count of using a weapon during the commission of a violent crime (carjacking). In addition to the prison sentence, Judge Mays ordered Evans to serve three years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Safe Streets Task Force, which is comprised of investigators from the Federal Bureau of Investigation, Memphis Police Department, Shelby County Sheriff’s Office, Bartlett Police Department, and Germantown Police Department. Assistant U.S. Attorney Daniel French represented the government.Three Arrested as Part of Operation Cross CountryRead the Press Release
Memphis, TN – Trenton Mitchell, 23; Rodney Armstrong, 22; and Charlisa Wright, 18; have
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been charged in a criminal complaint with child prostitution, announced U.S. Attorney Edward
L. Stanton III.
Operation Cross Country was a nationwide law enforcement sweep led by the Federal Bureau of
Investigation targeting child sex-trafficking. According to the complaint filed in the Western
District of Tennessee, the operation involved infiltrating ads listed on backpage.com in the
Memphis metropolitan area. The operation resulted in the recovery of a 14-year-old runaway
who had been missing since June 20, 2013, who was subjected to prostitution and physical abuse
at the hands of the accused.
All three defendants are in custody and awaiting an initial appearance. This case was
investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Debra Ireland is
representing the government.
The charges and allegations contained in this complaint are merely accusations, and the
defendants are considered innocent unless and until proven guilty.Home “Flipping” Scheme Nets Prison Sentences, $1.28 Million in Restitution for Memphis PairRead the Press Release
Memphis, TN – Michael Pinkney, 43, of Cordova, TN, and Alan R. Price, 50, of Olive Branch, MS, were each sentenced this week to 33 months in prison and ordered to pay $1,283,728.53 in restitution for their roles in a foreclosed real estate “flipping” scheme, announced U.S. Attorney Edward L. Stanton III.
According to facts revealed during their respective sentencing hearings before U.S. District Judge Samuel H. Mays, Pinkney, the owner and president of Capital Mortgage and Peanut Construction Company, and Price conspired to identify foreclosed properties, recruit nominee buyers to purchase and refinance the properties, and submit false and fraudulent documents to mortgage finance companies.
Using his position as a registered property appraiser, Price would submit appraisals reflecting that improvements had been made to the foreclosed properties, knowing that they had not. These appraisals falsely inflated the value of the properties, which allowed more money to be borrowed against them. These loans were obtained through Pinkney’s mortgage company. As a result, the loan funding companies CitiMortgage and Taylor, Bean and Whitaker lost $1,283,728.53.
One example cited in the original information charging the men was a property on Harbert Avenue purchased by nominee buyers in January 2009 for $65,000. Two months later, Price submitted an appraisal which valued the property at $400,000 even though no improvements had been made to the property since its purchase. All of the properties listed in the information were located in the Midtown area of Memphis.
Both men pleaded guilty in mid-April to one count of conspiracy to commit wire fraud and one count of wire fraud. This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Justin Bailey represented the government in this case.Darrin Young Arrested for Threatening the Life of the President of the United StatesRead the Press Release
Memphis, TN – Darrin Young, a/k/a Darrin Fleming, 39, of Memphis, TN, has been charged in a criminal complaint with threatening the life of President Barack Obama, announced U.S. Attorney Edward L. Stanton III today.
Investigators first became aware of the threat while listening to phone conversations between Young and Tabitha Gentry. Gentry has been incarcerated in the Shelby County Jail since March 2013 on charges of theft of property over $250,000 and assaulting two police officers. Gentry allegedly took unlawful possession of a multi-million dollar residence on Shady Grove Road in Memphis, claiming rights to the property as a sovereign citizen.
On or about July 11, 2013, a conversation was recorded between Young and Gentry. The complaint alleges that Young stated they are going to “burn” Barack Obama; that they are going to “kill” him (President Obama); and that they are going to “murk” him (President Obama) and the Justice Department. Murk is street slang for murder.
Young is in custody awaiting an initial appearance. This case was investigated by the United States Secret Service. Assistant U.S. Attorneys Fred Godwin and Mark Erskine are representing the government.# # # #
The charges and allegations contained in this complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.Irs Employee Charged with Laundering Drug ProceedsRead the Press Release
Memphis, TN – Maggie Cooper, 62, of Memphis, TN, a 27-year veteran Internal Revenue Service (IRS) Tax Analyst, was indicted today in a 38-count indictment charging her with money laundering and money laundering conspiracy, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, and Christopher A. Henry, Special Agent in Charge of IRS-Criminal Investigation.
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The indictment alleges that beginning in or about 2011 and continuing through September 2012, Cooper conspired with others to conduct financial transactions with proceeds obtained from marijuana trafficking. Specifically, Cooper would make purchases in her name with money derived from her co-conspirators’ unlawful activity, with the understanding that the purchased items would be paid for and owned by the co-conspirator, including the purchase of a 2007 Jaguar XKR.
The indictment further alleges that Cooper allowed bank accounts to be opened in her name for her co-conspirator to facilitate marijuana purchases and sales. If convicted, she faces a term of up to 20 years in prison. She also faces fines of up to $500,000 and criminal forfeiture as alleged in the indictment.
This investigation was conducted by IRS-Criminal Investigation, U.S. Treasury Inspector General for Tax Administration (TIGTA), and the Memphis Police Department Organized Crime Unit. Assistant U.S. Attorney Deb Ireland represents the government.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Savannnah Contractor Charged with Mail Fraud and Making False Statements in Meth House Cleanup SchemeRead the Press Release
Jackson, TN – Douglas Earl McCasland, 45, of Savannah, TN, was indicted today on 10 counts of mail fraud, and three counts of making false statements regarding the proper remediation of houses where methamphetamines have been produced, announced U.S. Attorney Edward L. Stanton III.
The indictment alleges that McCasland was certified by the State of Tennessee as a Methamphetamine Remediation Contractor and operated a business known as Haz-Tech. Under state law, all harmful residues resulting from the manufacture of methamphetamine must be removed from a house before it can be re-inhabited, and a Certified Meth Lab (CML) Industrial Hygienist must test the home to determine if it is free of harmful residue.
McCasland was not a CML Industrial Hygienist but created or directed the creation of Certificates of Fitness for properties upon which his company had performed remediation work, even after being previously warned against doing so by the Tennessee Department of Environment and Conservation. These certificates were mailed to County Registrars of Deeds and law enforcement offices for the purpose of releasing these properties from quarantine.
The indictment lists at least nine properties in Shelby, Dyer, Hardin, Carroll, Humphries, and Coffee counties in West and Middle Tennessee where McCasland is alleged to have improperly certified the homes as being safe for habitation.
If convicted, he faces up to 20 years in prison and a fine of up to a $250,000 for each count of mail fraud, and up to five years in prison and a fine of up to $250,000 for each count of making false statements.
“It is well known that any building where methamphetamines have been manufactured is a dangerously toxic place unless and until it is properly cleaned and tested,” said U.S. Attorney Stanton. “As the indictment alleges, Mr. McCasland’s fraudulent actions, risked the health and safety of the individuals who moved into contaminated homes, all so that he could profit financially.”
This case is being investigated by the Environmental Protection Agency and the United States Postal Inspection Service. Assistant United States Attorney Vic Ivy is representing the government.# # # #
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.Trio of Used Car Salesmen Plead Guilty in Money Laundering Conspiracy, Forfeit Almost $12 MillionRead the Press Release
Memphis, TN – Three used car salesmen have entered guilty pleas for their roles in selling cars to drug traffickers in an effort to launder drug proceeds, announced United States Attorney Edward L. Stanton III.
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Wayne David McAlpin, Jr., 50, of Memphis, TN pleaded guilty to one count of money laundering and one count of filing fraudulent documents with the Internal Revenue Service (IRS). Brian Bowman, 46, of Lakeland, TN; and James Austin, a/k/a “the Rev,” 61, of Memphis, TN, each pleaded guilty to one count of filing fraudulent documents with the IRS.
In addition, McAlpin, Jr. and Bowman agreed to forfeit almost $12 million dollars in bank accounts, investment accounts and vehicles, including: a 2008 Bentley Continental GTC; a 2011 Audi A8; a 2009 Cadillac Escalade; and a 2011 Lexus GX460.
“While masking themselves as legitimate businessmen, these individuals lined their pockets with excessive profits by helping drug dealers enjoy the lavish fruits of their criminal acts,” said U.S. Attorney Edward L. Stanton III. “These guilty pleas should serve as a clear reminder to those business operators who facilitate fraud and money laundering schemes that while you think you may be flying under the radar, you are not. It’s just a matter of time before you are caught and brought to justice.”
This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
“Traffickers may be equipped with a multitude of sophisticated methods in which to hide their assets, but Drug Enforcement Administration’s (DEA) relentless pursuit to disrupt and destroy their drug trafficking activities prevailed in this case,” said Brian K. Chambers, the Resident Agent in Charge of the DEA Memphis Resident Office. “This investigation was a success because of the multi-level law enforcement cooperation.”
According to the agreed-upon statement of facts filed with the court during the men’s respective plea hearings, during the time in question, McAlpin, Jr. was president of Budget Auto Sales, and Austin worked as a salesman there. Bowman was president of Pyramid Used Car Sales. These businesses were frequented by individuals engaged in criminal activity, including, but not limited to, illegal drug trafficking. The businesses sold multiple vehicles to drug traffickers, knowing they had previously had vehicles seized by law enforcement for transporting and concealing illegal drugs.
As part of the criminal conspiracy to conceal the fact that cars were being purchased with the proceeds of illegal drug trafficking, each man submitted IRS Form 8300s with false and misleading information. This form requires any car dealership to report all cash transactions of $10,000 or more. The individuals also titled vehicles in the names of other people, as part of an effort to hide the transactions from law enforcement.
"Structuring financial transactions to avoid currency reporting requirements is a criminal violation of federal law under the Bank Secrecy Act. Deliberately avoiding BSA requirements is a form of money laundering," stated Christopher A. Henry, Special Agent in Charge of the Nashville Field Office. “IRS Criminal Investigation is committed to unraveling complex financial transactions and money laundering schemes where individuals attempt to conceal the true source of their money."
This crime was investigated by the Drug Enforcement Administration, IRS Criminal Investigations, the Memphis Police Department, and the Shelby County Sheriff’s Department. The case was prosecuted by Assistant United States Attorneys Chris Cotton, Daniel French, and Jerry Kitchen on behalf of the government.Former Bank President Stephen Henry Sentenced to Two Years, Ordered to Pay $2.4 Million in RestitutionRead the Press Release
Memphis, TN – Stephen Henry, 46, of Memphis, was sentenced Friday to 24 months in prison and ordered to pay $2,424,000 in restitution as a result of his guilty plea to one count of misapplication of bank funds, announced U.S. Attorney Edward L. Stanton III.
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Henry was serving as president and CEO of Oakland Deposit Bank, which was owned by his family. According to information revealed during his plea hearing, Oakland Bank had made numerous loans to Stephen Sims, a local real estate investor. In late 2007, many of these loans were delinquent. In an effort to keep the loans from going into default, Stephen Henry assisted Stephen Sims in using monies from construction loans to pay on unrelated unsecured loans that had become delinquent. In addition, Stephen Henry manipulated the bank’s books and records to allow bank monies to be used to pay on delinquent loans without being credited to a customer’s account.
The scheme eventually led to Sims defaulting on more than $2.4 million dollars in loans from the bank. Oakland Deposit Bank was forced to go into receivership and was taken over by officials with the Federal Deposit Insurance Corporation (FDIC). The bank was later sold.
For his role in the scheme, Sims pleaded guilty to three counts of bank fraud and was sentenced to 87 months in federal prison in July 2012. He was also ordered to pay more than $2.4 million in restitution.
“The court found that while he did not personally benefit from the fraud perpetrated against the bank, Mr. Henry’s failure to follow proper banking procedure enabled the scheme to defraud the bank,” said U.S. Attorney Stanton. “Today’s sentence serves as a warning to those in positions of authority that the failure to exercise due diligence can leave you exposed to serious criminal consequences.”
In addition to the prison sentence and restitution, U.S. District Judge Samuel H. Mays, Jr., ordered Henry to serve five years of supervised release. There is no parole in the federal prison system.
This case was investigated by the Federal Bureau of Investigation and the FDIC. Executive Assistant U.S. Attorney Larry Laurenzi represented the government.Synthetic Drug Sweep Hits Individuals and Businesses Across West TennesseeRead the Press Release
Memphis, TN – Indictments were unsealed today in Memphis and Jackson, TN naming 40 individuals alleged to be part of the synthetic drug trade in West Tennessee, announced U.S. Attorney Edward L. Stanton III; Resident Agent-in-Charge of the Drug Enforcement Administration’s (DEA) Memphis office Brian Chambers; and Shelby County District Attorney General Amy Weirich.
“Project Synergy,” a DEA initiative, is the largest-ever coordinated law enforcement strike against designer drugs, targeting manufacturers, distributors, and retailers of more than 250 synthetic drugs being abused every day in the United States and globally. This initiative was conducted in conjunction with prosecutors in Memphis and Jackson as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.
“As alleged, the defendants were involved in an international web of distributing illegal synthetic drugs at numerous retail establishments throughout West Tennessee and beyond, many lining their pockets with multi-million-dollar profits,” said U.S. Attorney Stanton. “Today’s indictments, arrests and seizures demonstrate that the manufacturing, distribution and purchase of these highly addictive and potentially lethal substances will not be tolerated, and those who are brazen enough to sell this poison, particularly to our children and young adults, will be held accountable. I thank the DEA for their diligent efforts with this case over the past two years and the more than 400 federal, state and local law enforcement officials who took part in today’s sweeping takedown throughout the Western District of Tennessee.”
After a two-year investigation involving federal state and local law enforcement, hundreds of purchases and seizures were made from more than 34 different storefronts in the Western District of Tennessee.
During today’s takedown more than 76 search warrants and 35 arrest warrants were executed.
“Stopping the flow of synthetic drugs both domestically and internationally is a major focal point at DEA,” said Michael J Stanfill, the Assistant Special Agent in Charge of the DEA Nashville
District Office. “In doing so, we will continue to work with our law enforcement partners to disrupt the flow of these dangerous substances. This case was successful because of the true spirit of cooperation between all agencies involved.”
The drugs seized in this investigation generally fall into two categories: synthetic cannabinoids and synthetic cathinones. Synthetic cannabinoids, often known by the street names “Spice” or “K2,” mimic the hallucinogenic effects of marijuana with the added side effects of hallucinations, seizures, and dependency/addiction not usually associated with marijuana users. Synthetic cathinones, better known as “bath salts” or “plant food,” produce a high similar to methamphetamine, MDMA or cocaine. Abusers experience chest pain, increased blood pressure, agitation, panic attacks, irrational behavior, hallucinations, paranoia, delusions, and even heart attacks and strokes.
"The sellers of synthetic drugs specifically target our young people," said District Attorney General Weirich. "We will not sit back and ignore this threat to our children and to the entire community."
The following individuals were indicted by a federal grand jury in Memphis:
• Ali S. Abdelrahim, 51, Collierville, TN, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Maged Ali-Ahmed Abdullah, 45, Memphis, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Samer Abu-Atiyeh, age, address, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Kadhim Almaslouk, 43, Memphis, TN, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Yousef Al Sharif, 39, Cordova, TN, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Sung Su An, 44, Collierville, TN, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If
previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Emad Bahhur, 57, Germantown, TN, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Fayez Bahhur, 32, Cordova, TN, charged with two counts of conspiracy to possess and distribute and one count of conspiracy to commit money laundering. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count. The money laundering charge carries a penalty of up to 20 years in prison and fine of up to half a million dollars.
• Lewis Cochran, 42, Olive Branch, MS, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Pamela Cochran, 42, Olive Branch, MS, charged with two counts of conspiracy to possess and distribute. If convicted she faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Gary Geiser, 63, Memphis, charged with two counts of conspiracy to possess and distribute, one count of conspiracy to commit money laundering, one count of money laundering, and one count of structuring. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count. The money laundering conspiracy charge carries a penalty of up to 20 years in prison and the fine of up to half a million dollars. The money laundering charge carries a penalty of up to 10 years in prison and a fine of up to half a million dollars. The structuring charge carries a penalty of up to ten years in prison and a fine of up to half a million dollars.
• Lisa Gertz, 50, Memphis, charged with one count of conspiracy to possess and distribute. If convicted she faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Abdul Aziz Isani, 69, Olive Branch, MS, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Nabil Mawlawi, 48, Memphis, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Cameron Marcrum, 31, address unknown, charged with two counts of conspiracy to possess and distribute and one count of conspiracy to commit money laundering. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count. The money laundering charge carries a penalty of up to 20 years in prison and the fine of up to half a million dollars.
• Jonathan Martin, age and address unknown, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Crystal McCracken, 26, Memphis, charged in two separate indictments with a total of three counts of conspiracy to possess and distribute. If convicted she faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Linda Montgomery, 61, Memphis, charged with two counts of conspiracy to possess and distribute and one count of conspiracy to commit money laundering. If convicted she faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count. The money laundering charge carries a penalty of up to 20 years in prison and the fine of up to half a million dollars.
• Fuad Murshed, 31, Memphis, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Daniel Pendergrass, 66, Memphis, charged with two counts of conspiracy to possess and distribute and one count of conspiracy to commit money laundering. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count. The money laundering charge carries a penalty of up to 20 years in prison and the fine of up to half a million dollars.
• Mohammed Al Rawahneh, 28, Germantown, TN, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• James Sexton, 38, Memphis, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Robert Snyder, 33, Memphis, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Max Suh, 40, Collierville, TN, charged with one count of conspiracy to possess and distribute and one count of conspiracy to commit money laundering. If convicted he faces up to 20 years in prison and a fine of up to $1 million for the conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million. The money laundering charge carries a penalty of up to 20 years in prison and the fine of up to half a million dollars.
• Abdel Kareem Mohammad Taha, 23, Cordova, TN, charged with two counts of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million for each count.
• Max Terhune, 29, Memphis, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Donald Tyler, 43, Memphis, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Umar Yusuf, a/k/a “Umar Hussein”, 34, Bartlett, TN, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
The following individuals were indicted by a federal grand jury in Jackson, TN:
• Hassan “Sam” Safa, 40, Jackson, TN, charged with one count of conspiracy to possess and distribute and five counts of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Ehab “Mark” Rezk, 37, Jackson, TN, charged with one count of conspiracy to possess and distribute, and 56 counts of structuring. If convicted he faces up to 20 years in prison and a fine of up to $1 million for the conspiracy count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million. The structuring charge carries a penalty of up to ten years in prison and a fine of up to half a million dollars for each count.
• Ali Safa, 43, New York City, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Mahmoud, “Steve” Safa, 46, Jackson, TN, charged with one count of conspiracy to possess and distribute and two counts of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Mohamed Khalil, 57, Jackson, TN, charged with one count of conspiracy to possess and distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Hussein Salloukh, 25, Jackson, TN, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Nazem Salloukh, 52, Jackson, TN, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. I If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Ahmad, a/k/a Ahmed “Eddie” Elsebae, 51, Jackson, TN, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Akram Nagi, 26, Jackson, TN, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Paula Nell Kirk, 46, Jackson, TN, charged with one count of conspiracy to possess and distribute and two counts of possession with intent to distribute. If convicted she faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Irene Rosas-Montalvo, 33, Jackson, TN, charged with one count of conspiracy to possess and distribute. If convicted she faces up to 20 years in prison and a fine of up to $1 million. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
• Hani Tarhini, 46, Panama City, FL, charged with one count of conspiracy to possess and distribute and one count of possession with intent to distribute. If convicted he faces up to 20 years in prison and a fine of up to $1 million for each count. If previously convicted of a drug crime, the sentence could be up to 30 years and the fine up to $2 million.
Search warrants were also served on the following businesses:
Tobacco Box, 1740 N. Germantown Pkwy., Suite 10, Cordova, TN
Tobacco Zone, 1319 N. Germantown Pkwy., Cordova, TN
Tobacco Zone, 2857 Kirby #115, Memphis, TN
Tobacco Hut Smoke Shop, 5119 Summer Avenue, #103, Memphis TN
Buddy’s Smoke, address unavailable
Cooper Young Glassworks, 906 S. Cooper St., Memphis, TN
Gonzo’s Smoke Shop, 2125 Sycamore View Rd., Memphis, TN
Smoke N More, 1775 N. Germantown Pkwy., Cordova, TN
A&P Tobacco, 3878 Austin Peay Hwy., Memphis, TN
Wizards (store), 1999 Madison Ave., Memphis, TN
Wizards (warehouse) 11 S. Morrison, Memphis, TN
Friendly Quick Stop, 5510 Stage Rd., Bartlett, TN
Tobacco Etc., 6600 Stage Rd., #128, Bartlett, TN
Tobacco Express, 4520 Summer Ave., #1, Memphis, TN
Humidor Tobacco, 1166 N. Houston Levee, #104, Memphis, TN
Whatever, 610 S. Highland, Memphis, TN
CubeSmart (Storage facility used by Whatever), 2700 Poplar, storage unit B8, Memphis, TN
Tobacco Max, 6730 Winchester Rd., Memphis, TN
Highland Smoke Shop, 571 S. Highland, Memphis, TN
Tobacco Superstore, 7464 Winchester Rd., Suite 104, Memphis, TN
Tobacco World, 4621 Quince, Memphis, TN
Longtown BP, 3965 Hwy 59, Mason, TN
Half-Price Smoke Shop, 5520 Summer Ave., Suite 104, Memphis, TN
Tobacco World Smoke Shop, 640 South Highland, Memphis, TN
Superway Gas Station, 26 Bowling Dr., Jackson, TN
Always Save Grocery Store, 419 E. College St., Jackson, TN
Superway Gas Station, 795 Airways Blvd., Jackson, TN
Superway Discount Tobacco & Gas, 1435 Riverside Dr., Jackson, TN
Q-Mart/Superway Gas Station, 2990 East End Dr., Humboldt, TN
Superway/On the Go, 151 Law Rd., Jackson, TN
Zazz Lube and Wash, 2739 N. Highland Ave., Jackson, TN
Citgo, 105/107 Carriage House Dr., Jackson, TN
McKenzies Food Fare/Market, 2857 Airways Blvd., Jackson, TN
This investigation was conducted by the DEA Memphis Drug Task Force, the United States Marshals Service, the Internal Revenue Service, the Tennessee Highway Patrol, the Tennessee Bureau of Investigation, the Memphis Police Department, the Shelby County Sheriff’s Department, the Bartlett Police Department, the Madison County Sheriff’s Department, and the Jackson Police Department. These cases are being prosecuted for the government by Special Assistant United States Attorney Chris Scruggs and Assistant United States Attorney Matt Wilson.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.Media AdvisoryRead the Press Release
WHAT:
U.S. Attorney Edward L. Stanton III; Resident Agent-in-Charge of the Drug Enforcement Administration’s (DEA) Memphis office Brian Chambers; Shelby County District Attorney General Amy Weirich; and other federal state and local law enforcement officials will be announcing today’s execution of arrest warrants and search warrants for multiple businesses and residences throughout West Tennessee. DATE:Wednesday, June 26, 2013
TIME:
2:30 p.m.
WHERE:
Main Conference Room
United States Attorney’s Office
167 N. Main Street, Suite 800
Memphis, TN 38103MISCELLANEOUS:
All media members must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Media are requested to RSVP to [email protected]. The conference room will be available for media to set up at 2:15 p.m. and must be pre-set by 2:25 p.m. Press inquiries regarding logistics should be directed to Rodney King at 901-969-0344.
Reporters in the Jackson area can attend the press conference via VTC in the Main Conference Room of our Jackson, TN office.
109 S. Highland Ave, Suite 300
Jackson, TN 38130Follow the USAO-Western District of Tennessee on Twitter @WDTNNews