District of South Carolina

Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Carl Dean Churchman, a former Westinghouse Electric Corporation Vice President and the Project Director of the V.C. Summer Nuclear project, pled guilty today in federal court to making a false statement to an FBI agent during the investigation of the failed nuclear project at the V.C. Summer site.

“This guilty plea shows that the investigation into the V.C. Summer nuclear debacle did not end with the former SCANA executives,” said Acting United States Attorney DeHart. “We are committed to seeing this case through and holding all individual and corporate wrongdoers accountable.”

“Today’s plea highlights the FBI’s determination to conduct a comprehensive investigation that yields the truth,” said FBI Special Agent in Charge Susan Ferensic.  “We will continue to ask important questions and identify all involved in this failed nuclear project.”

As evidence presented to the court showed, Churchman was interviewed by FBI Special Agent Aaron Hawkins in May 2019.  During the interview, Agent Hawkins asked Churchman several questions about Westinghouse’s reporting of V.C. Summer’s completion dates to SCANA and Santee Cooper (“the owners”) in early 2017. 

Churchman told Agent Hawkins that Westinghouse’s executives did not consult him prior to reporting the completion dates to the owners.  Churchman claimed that he did not know the dates before they were reported and that he did not know who made the decision to report the dates to the owners. 

However, emails and other documents obtained during the investigation of the failed nuclear project at the V.C. Summer site revealed that Churchman lied to Agent Hawkins during the May 2019 interview.  An internal Westinghouse email chain establishes that Churchman received and discussed the dates in early 2017.

Additionally, detailed notes from an early 2017 meeting with Westinghouse executives by SCANA’s Executive Vice President Steve Byrne revealed that Churchman reported the completion dates to SCANA on February 14, 2017, directly contradicting the statements Churchman made to Agent Hawkins.

On May 19, 2021, Churchman sat down for another interview with the FBI.  At the beginning of the interview, Churchman acknowledged that his previous statements were untrue.

Today’s plea is the third stemming from the investigation of the failed nuclear project.  Byrne previously pled guilty to conspiracy to commit mail and wire fraud, and former SCANA Chief Executive Officer and former Chairman of its Board of Directors Kevin Marsh pled guilty in federal court to conspiracy to commit mail and wire fraud.

Today’s plea also follows a previously announced agreement with Dominion Energy that will, over time, provide at least four billion dollars of South Carolina ratepayer relief; and it follows a previously announced settlement by SCANA and SCE&G on a Securities and Exchange Commission lawsuit charging them with defrauding investors by making false and misleading statements about the nuclear plant expansion that was ultimately abandoned.

In the plea agreement, Churchman agrees to cooperate fully with federal, state, and local law enforcement agencies.  He also agrees to testify fully and truthfully before any grand juries until the investigation and prosecution in the criminal acts that occurred in relation to the failed V.C. Summer Nuclear plant expansion are complete.

On the federal charge, Churchman faces a maximum penalty of five years in prison, a fine of up to $250,000, supervised release of up to 3 years, and a $100 special assessment.

United States District Judge Mary G. Lewis accepted the guilty plea and will sentence Churchman after receiving and reviewing a sentencing report prepared by the United States Probation Office.

Assistant United States Attorneys Jim May, Brook Andrews, Winston Holliday, Emily Limehouse, and Jason Peavy along with Special Assistant United States Attorney John O’Halloran, a lawyer with the Securities and Exchange Commission, prosecuted the case.

 

#####

 

MYRTLE BEACH, SC --- Acting United States Attorney M. Rhett DeHart announced today that a Federal Grand Jury has returned a multi-count indictment charging several Myrtle Beach businesses, business owners, and business managers with conspiracy to commit wire fraud, money laundering, and visa fraud.  Acting U.S. Attorney DeHart is also calling for the public’s assistance to identify additional victims to the conspiracy.

The indictment alleges that Raja Imran Younas – the registered agent, president, and chief executive of Grandeur Management, Inc; the registered agent and Chief Financial Officer of Premier Laundry and Linen Supply LLC; the registered agent of Cenet USA LLC; and a 50% interest member of Hospitality Service Group LLC; Syed Rehan Naqvi, the registered agent and organizer of Rida Naqvi LLC; Jessica Voight, an employee of Grandeur Management; Hospitality Service Group LLC and the aforementioned businesses devised a scheme to defraud workers outside the United States to work for the defendants.  It is alleged that the conspirators not only submitted false and fraudulent visa petitions but also mispresented the positions, duties, rates of pay, working conditions, and living conditions to collect unauthorized and improper fees from aliens seeking H-2B nonimmigrant visas. 

According to the indictment, the conspirators would and did use separate accounts in order to pay employees differently based on their current nonimmigration or alien status in the United States.  It is also alleged that, despite promising the workers full-time work, the conspirators provided less than full-time work and consistently paid the workers less than the amount states in the workers’ contracts and in the applications the defendants submitted to the United States Department of Labor and the U.S. Citizenship and Immigration Services.

The indictment further alleges that part of the conspiracy is the  misrepresentation that the conspirators maintain an established international cultural exchange program designed, on the whole, to exhibit or explain the attitude, customs, history, heritage, philosophy, traditions, and/or other cultural attributes (arts, literature, language) of the participant’s country of nationality in order to obtain authorization to sponsor Q-1 visas; when, in fact, once the nonimmigrant employees arrived in the United States, they were placed by their visa sponsors into inward facing housekeeping jobs, with no real opportunities for cultural exchange.

According to the indictment – Younas and Naqvi signed petitions for alien workers containing material misrepresentations; Voight and others conducted interviews with the alien workers over the internet and instructed them on how to wire unlawful visa fees charged by the conspirators; and collected the unlawful fees.  The indictment further alleges that Hospitality Service Group, Rida Naqvi, Grandeur Management, Cenet, USA and Premier Laundry and Linen Supply did not provide the hours and wages promised to the workers in their contracts or represented in their applications to the Department of Labor and the U.S. Citizenship and Immigrations Services.  Hospitality Service Group is also charged with petitioning for individuals who never worked for the company.

The maximum penalty the defendants could receive is twenty years imprisonment.

“Our nation’s visa system is an asset that provides much-needed resources to our communities and valuable opportunities to foreign workers,” said Acting U.S. Attorney DeHart.  “Those in South Carolina who exploit the system and its workers will be brought to justice by our office, while we rescue and restore victims in the process.”

“While the allegations in the indictment speak for themselves, our office is seeking the public’s assistance to identify all potential victims,” continued Acting U.S. Attorney DeHart.  “If you and/or someone you know may have been victimized by the defendants’ alleged scheme, please contact our coordinated support services at traffickingtips@state.gov.”

“The Diplomatic Security Service (DSS) is committed to protecting the integrity of H-2B, B-2, and Q-1 visas, and all U.S. visas and travel documents that assist U.S. companies to legally employ foreign workers,” said DSS Special Agent in Charge Edwin Guard of the Washington Field Office.  “This case is the result of working with the U.S. Department of Justice and our other law enforcement partners to interdict visa and passport crimes and stop criminals from reaping illegal income by exploiting U.S. visas, passports, and foreign workers.”

“The Myrtle Beach Police Department, along with our community, remain committed to holding persons who victimize anyone here in Myrtle Beach accountable for their crimes,” said Myrtle Beach Police Chief Amy Prock.  “This case and these arrests demonstrate our commitment and the partnerships we have with our federal law enforcement colleagues.  We are here to help and will always stand up for those who need us.”

The case was investigated by special agents of the U.S. Department of State’s Diplomatic Security Service (DSS) and the Myrtle Beach Police Department. Assistant United States Attorney Carrie Fisher Sherard is prosecuting the case. 

Acting United States Attorney DeHart stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.

 

#####

Myrtle Beach, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that a press conference will be held tomorrow – June 10, 2021 – at 2:30 p.m., at the Warren S. Gall Police Annex at 3340 Mustang Street, Myrtle Beach SC 29577.

Represented at the press conference will be the U.S. Attorney’s Office for the District of South Carolina, the U.S. Department of State’s Diplomatic Security Service (DSS), and the Myrtle Beach Police Department.

WHEN:      Tomorrow – Thursday, June 10 – at 2:30 p.m.

WHERE:    Warren S. Gall Police Annex

                       3340 Mustang Street

                       Myrtle Beach, South Carolina 29577

NOTE:  Press inquiries regarding logistics should be directed to Michael Mule’, 843-327-0882.  Members of the media wishing to attend the remarks should begin gathering outside the Warren S. Gall Police Annex at 2 p.m., 30 minutes in advance.

 

#####

Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced that Carl Dean Churchman, Former Westinghouse Electric Corporation Vice President and Project Director of the V.C. Summer Nuclear project, is scheduled to plead guilty on Thursday, June 10, in federal court to making a false statement to an FBI agent during the investigation of the failed nuclear project at the V.C. Summer site.  The hearing is scheduled for 10:00 a.m. at the Matthew J. Perry Federal Courthouse, 901 Richland Street, Columbia, before the Honorable Mary Geiger Lewis.

Acting U.S. Attorney DeHart will be available for media questions after the hearing.

 

#####

Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart stated today that a Federal Grand Jury has returned a five-count indictment charging Jonathan Xavier Miller, 37, of Blythewood, for drug possession and possession of a firearm as a convicted felon.

The indictment alleges that, in February 2019, Miller knowingly, intentionally, and unlawfully possessed with the intent to distribute 50 grams or more of a mixture containing meth, cocaine, and crack cocaine.  It further alleges that, in July 2019, Miller possessed with the intent to distribute crack cocaine.  The indictment also alleges that, in November 2019, Miller possessed with the intent to distribute a substance containing meth, fentanyl and heroin, as well as possessing a 9mm handgun in furtherance of a drug trafficking crime.

Miller is prohibited to possess a firearm due to prior felony convictions.  Prior convictions of Miller include that for strong armed robbery, criminal domestic violence, drug possession, and gun possession.

Miller is facing up to life imprisonment on one of the federal charges.

The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Richland County Sheriff’s Department and the Irmo Police Department.

Acting United States Attorney DeHart stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.

 

#####

Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Wendell Wilkins, 32, of Spartanburg, was sentenced to 66 months in federal prison after pleading guilty to money laundering, for his role in a scheme to extort and defraud military members that was operated out of the South Carolina Department of Corrections (SCDC).

Evidence presented to the court showed that, while serving a 12-year sentence in SCDC for attempted armed robbery and using smartphones smuggled into prison, Wilkins joined internet dating sites, posed as young women thereon, and began communicating with military members.  Posing as young women and targeting military members, Wilkins sent nude photographs of young females to the military members and solicited nude photographs and other personal information in exchange.  Wilkins, and others acting at his direction, then posed as the father of the young woman, claiming that the young woman was underage and that the military member was in possession of child pornography.  Wilkins and others then threatened to have the military members arrested or dishonorably discharged unless they paid money.

Due to this extortion, service members transferred funds via Western Union and MoneyGram to Wilkins’ associates at Wilkins’ direction.  From February 2016 through January 2018, Wilkins received at least $74,000.00 in extorted funds, which investigators traced to at least 25 military victims.

Wilkins was one of numerous inmates at SCDC prosecuted by the U.S. Attorney’s Office in South Carolina for participating in this scheme to extort military members.  In total, more than 300 military members throughout the United States were victims of the scheme, and the amount of loss exceeded $350,000.  Several military members committed suicide after falling victim to this extortion scheme.

United States District Judge David C. Norton sentenced Wilkins to 66 months in federal prison and 36 months of supervised release to be served after Wilkins completes his 12-year state prison sentence.  There is no parole in the federal system.

This case was investigated by the Naval Criminal Investigative Service (NCIS), Internal Revenue Service (IRS) Criminal Investigation, Defense Criminal Investigative Service (DCIS), Air Force Office of Special Investigations, U.S. Army Criminal Investigations Command (CID), United States Marshals Service, South Carolina Department of Corrections, and South Carolina Law Enforcement Division. 

Acting U.S. Attorney DeHart prosecuted the case.

“Nothing good comes from smartphones in prison,” said Acting U.S. Attorney DeHart.  “Inmates use them to commit even more crimes while behind bars.  We hope this prosecution helps state officials eliminate and disable contraband phones in prison.”

“Mr. Wilkins deserves to be held fully accountable for his role in this reprehensible scheme to deceive and defraud our nation’s service members,” said NCIS Carolinas Field Office Special Agent in Charge Sean Devinny.  “This sentencing should serve as a warning that NCIS and our law enforcement partners will use every resource available to ensure these criminal networks are destroyed.  I would like to sincerely thank our partners for their continued dedication and assistance in keeping our service members safe.”

“Mr. Wilkins knowingly used deceit and trickery to prey on those who serve our nation.  It’s unconscionable to think that the defendant perpetuated this years-long financial scam against servicemembers while already in prison for other criminal activity,” said Mona Passmore, Acting Special Agent in Charge, IRS Criminal Investigation, Charlotte Field Office.  “We will continue to work with our law enforcement partners to unravel this and other complex financial and money laundering schemes where individuals attempt to conceal the true source of their income and use the internet to mask their true identity.  This additional federal felony conviction and federal prison term should have a strong deterrent effect against any other criminal activity Mr. Wilkins and others might consider pursuing.”

“The Defense Criminal Investigative Service stands committed to aggressively pursue and investigate organized criminals who target our service members and undermine their combat readiness and well-being,” said Special Agent in Charge Christopher Dillard, DCIS Mid-Atlantic Field Office.  “We hope this case demonstrates the resolve of DCIS and our law enforcement partners to uphold the integrity of the Department of Defense and protect our Warfighters.”

“The Office of Special Investigations (OSI) is committed to being a vital investigative agency aimed at finding the truth, thwarting all threats, and promoting unfailing justice for the Department of the Air Force, Department of Defense, and nation," said Special Agent in Charge Craig Hotaling, OSI Detachment 310, Joint Base Charleston, SC.  "We will continue to work with our law enforcement partners to protect the personnel of the United States Air Force and Space Force."

"This case highlights the outstanding partnerships of OSI with our fellow law enforcement agencies to protect Department of Defense personnel," said Colonel Tamara Henderson, Commander, OSI Region 3, Scott AFB, IL.  "OSI will continue to identify, exploit and neutralize criminal threats targeting the Department of the Air Force, Space Force, and the Department of Defense."

“Unfortunately, these scams are common,” said Edward LaBarge, director of the Major Cybercrime Unit, U.S. Army Criminal Investigation Command (CID).  “CID special agents will continue to aggressively pursue criminals who target our warfighters and their families in these types of schemes regardless of where they are in the world.”

“This is another example of how dangerous it is for inmates to have illegal cell phones,” said Bryan Stirling, Director of the S.C. Department of Corrections.  “States need the ability to jam cell phone signals inside prisons so we can keep inmates from continuing their illegal activities.”

#####

Charleston, South Carolina –– Acting United States Attorney M. Rhett Dehart announced today that Cameron Banks, a/k/a “Reggie Staggers”, a/k/a “Roy Hamilton,” 36, of Mount Pleasant, was sentenced to nine years in federal prison for wire fraud, bank fraud, mail fraud, and health care fraud schemes.

Evidence presented to the Court established that Banks began his schemes in 2013, when he submitted a falsified loan application to obtain a 2014 Bentley Sedan for $212,034.000.  Thereafter, while employed by Dr. Cornelius J. Beck, Banks ran a loan program in which he stole Dr. Beck’s identity and submitted falsified loan applications on behalf of patients to obtain dental work.  To obtain these loans, Banks created fraudulent loan documents using Dr. Beck’s forged signature.  While the funds were supposed to be used for dental procedures, few people received any dental work. Banks transferred most of the funds into his personal bank accounts for his own use.

Further evidence outlined another fraudulent scheme, beginning in 2015 and continuing into 2018, in which Banks submitted requests to the Department of Transportation to receive numbers to operate commercial vehicles.  The requests contained false information and withheld information Banks was required to disclose, namely his relationship with other entities licensed by the Federal Motor Carrier Safety Administration.

While Banks was on bond for the conduct outlined above, investigators uncovered a third fraudulent scheme in which Banks operated a Ponzi scheme.  Investors believed they were investing in the operation of commercial trucking business.  Under the lease agreements, Banks would provide the truck, the driver, and the insurance, and in exchange, investors were promised a majority of the profits.  In reality, Banks spent the investment funds on personal expenses, including car leases, jewelry, and travel.  To keep the scheme going, Banks mailed investors checks that represented a portion of the funds to which they were entitled and created false expense documents to explain the lack of profits.  There were at least 32 victims of this scheme, many of which experienced substantial financial hardship after investing their life savings.

Evidence presented during the hearing outlined that Banks’ criminal record of stealing peoples’ identities and submitting false documents began at a young age.  Banks’ criminal history evinces a lifetime of undeterred forgery, theft, and deception.  Banks has prior convictions for forgery, fraudulent checks, bank fraud, financial identity fraud, financial transaction card theft, tax evasion, and numerous instances of probation violations.

United States District Judge David C. Norton sentenced Banks to 108 months imprisonment, followed by a three-year term of supervised release.

This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, the United States Department of Transportation Office of the Inspector General, the South Carolina Law Enforcement Division, and the South Carolina Department of Revenue.

Assistant United States Attorneys Emily Limehouse and Jason Peavy prosecuted the case.

 

#####

Columbia, South Carolina ––– Acting United States Attorney M. Rhett DeHart stated today that a Federal Grand Jury has returned a seven-count indictment charging Jonathan Kent Owens – a former employee of the Federal Correction Institution, Edgefield (FCI Edgefield) – for mail fraud and theft of government funds.

Owens, 39, of North Augusta, is charged with five counts of mail fraud, one count of theft of government property, and one count of theft of government funds. 

The indictment alleges that, over a five-year period and through his employment as an Information Technology Specialist at FCI Edgefield, Owens falsely reported and disguised the purchases of over $21,000 worth of certain items to appear as legitimate purchases for FCI Edgefield that were not.  Alleged items purchased for personal benefit include a truck suspension lift kit, sunglasses, wading boots, shoes, and clothing. 

The indictment further alleges that Owens misreported his time and attendance records to receive payment of approximately 120 hours of overtime for which he was not entitled.

The maximum penalty Owens could receive per count is twenty years imprisonment and a fine of $250,000.

The case was investigated by the Department of Justice’s Office of the Inspector General.  Assistant United States Attorney Winston Marosek is prosecuting the case.

Acting United States Attorney DeHart stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.

 

#####

Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced that the U.S. Attorney’s Office for the District of South Carolina will be honoring the 10 South Carolina law enforcement officers and three law enforcement K9s lost in the line of duty in 2020, while also recognizing the daily sacrifices made by all law enforcement officers, during National Police Week, observed from Sunday, May 9 through Saturday, May 15, 2021.

“Law enforcement officers and their families sacrifice greatly to protect and serve our communities,” said Acting U.S. Attorney DeHart.  “Unfortunately, in the past year, South Carolina has suffered from the ultimate sacrifices made by officers across the state.  We will always remember their sacrifices and honor their legacies.”

This year marks the 59th annual National Police Week that celebrates the contributions of law enforcement from around the country and recognizes their hard work, dedication, loyalty and commitment to keeping our communities safe.  In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices.  Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.

Based on data shared by the FBI’s Law Enforcement Officers Killed and Assaulted (LEOKA) Program, 93 law enforcement officers died nationwide in line-of-duty incidents in 2020.  The names of the fallen officers who have been added in 2021 to the wall at the National Law Enforcement Memorial will be read at a public vigil at 8:00 pm (EDT) on Thursday, May 13, 2021.  A live stream of the vigil can be viewed at https://www.youtube.com/user/TheNLEOMF.

 

#####

Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart stated today that a Federal Grand Jury has returned a 17-count indictment charging Earl Wayne Ravenell, 46, of Summerville, for preparing false income tax returns. 

Ravenell is charged with 16 counts of willfully aiding and assisting in the preparation of false and fraudulent tax returns and one count of making and subscribing a false tax return.  The maximum penalty Ravenell could receive per count is three years imprisonment and a fine of $250,000.

The case was investigated by the Internal Revenue Service.  Assistant United States Attorney Dean H. Secor is prosecuting the case.

Acting United States Attorney DeHart stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.

#####

Myrtle Beach, South Carolina --- Acting United States Attorney M. Rhett DeHart stated today that a Federal Grand Jury in Columbia returned a multiple-count indictment in connection with a kidnapping and carjacking that started in Horry County, continued into North Carolina, and culminated in a murder in Marion County.

Dominique Devonah Brand, 29, of Marion, was charged in a three-count indictment with kidnapping resulting in death, carjacking resulting in death, and use of a firearm in furtherance of a crime of violence resulting in death of a person in such a manner to constitute murder.  Brand could receive a sentence of up to life without the possibility of parole or death on all counts.

The indictment alleges that on or about March 28, 2021, Brand entered the home of Mary Ann Elvington in Nichols, South Carolina, and kidnapped her.  The indictment further alleges that Brand forced Elvington to drive him in her 2012 Buick Lacrosse to Lake Waccamaw, North Carolina, and then back to Lakeview, South Carolina.  There, according to the indictment, Brand forced Elvington into the back seat of the vehicle and he drove away with her in it.  It is alleged that, shortly thereafter, Brand shot and killed Elvington behind an abandoned grocery store at the Zion Crossroads in Marion County.  Brand then drove the vehicle to a wooded area behind a nightclub in Marion, South Carolina, and abandoned it, according to the indictment.

Brand will be arraigned by a United States Magistrate Judge at the McMillan Federal Courthouse in Florence, South Carolina, in the coming weeks.  He is currently in custody on related state charges in Marion County.  

The case was investigated by a joint team consisting of the Horry County Police Department, Marion County Sherriff’s Office, Dillon County Sherriff’s Office, Myrtle Beach City Police Department, Lakeview Police Department, and the South Carolina Law Enforcement Division.  The Federal Bureau of Investigation’s Pee Dee Safe Streets Gang Task Force is also assisting in the investigation.  Assistant United States Attorney Everett E. McMillian and Special Assistant United States Attorney Scott Hixson are prosecuting the federal case in close coordination with the 15th and 12th Circuit Solicitors’ Offices.

“While the indictment in this specific case speaks for itself, brazen violence, particularly against the elderly, will always be met with a strong, unified effort by law enforcement to bring the victims justice,” said Acting U.S. Attorney DeHart.  “We will never waver in our work to stop violent crime in South Carolina.”

Acting United States Attorney DeHart stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.

###

Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that a Federal Grand Jury in Columbia returned a multiple-count indictment in connection with the destruction of Bishopville’s Post Office and damage to Bishopville’s City Hall.

Jeffrey Albert Scott, 61, of Bishopville, was charged in a five-count indictment with three counts of malicious damage to a building by means of fire and two counts of destruction of letter boxes and mail. 

The indictment alleges that on or about January 19, 2017, Scott set fire to the Bishopville Post Office, also damaging the mail boxes inside.  The indictment further alleges that on or about October 17, 2020, just a few years later, Scott again set fire to the Bishopville Post Office, as well as Bishopville City Hall. The fire destroyed the Post Office, including the mail within.

Scott, who has pleaded not guilty on all five charges, was arraigned Tuesday by a United States Magistrate Judge in Columbia.  He is currently detained pending trial and is in custody on related state charges in Sumter County.

The case was investigated by a joint team of the United States Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms, and Explosives; South Carolina Law Enforcement Division; the Bishopville Police Department, and the Lee County Department of Public Safety.  Assistant U.S. Attorney Derek A. Shoemake is prosecuting the case.

Acting U.S. Attorney DeHart stated that all charges in the indictment are merely accusations and that the defendant is presumed innocent unless and until proven guilty.

#####

Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today the winners of the United States Attorney’s Office’s 18th Annual Project Safe Neighborhoods (PSN) Logo Contest, which was open to all South Carolina grade school students.

The theme of this year’s contest was “Preventing Gun Violence in Our Schools.”  Judges sought logos that demonstrated a successful collaboration between schools, communities, and law enforcement to reflect (1) warning signs that students should be looking for related to gun violence; (2) resources to help students who have concerns about gun violence; and (3) general messages to prevent gun violence in South Carolina schools.

“Stopping gun violence, particularly in our schools, is imperative,” said Acting U.S. Attorney DeHart.  “This year’s contest is one way to enhance the necessary dialogues in our schools to end gun violence and ensure school safety.  The United States Attorney’s Office thanks all students, teachers, and schools that participated in the contest and congratulates this year’s winners.”

The overall winning logo will be used in publications distributed statewide and displayed on the United States Attorney’s Office website.  The winner from each grade division and overall winner are named below:

Winner 9th-12th grade Division/ OVERALL WINNER

Alyssa Earnhardt, C.A. Johnson High School

Columbia, SC

Winner 6th-8th grade Division

Jasmine Lucas, William J. Clark Middle School

Orangeburg, SC

Winner 3rd-5th grade Division

Sanjana Kumar, Fairfield Magnet School

Winnsboro, SC

Winner K-2nd grade Division

I’Yanna Bryant, Wilder’s Elementary School

Sumter, SC

The winning entries were chosen by a select group of young leaders at the South Carolina Department of Juvenile Justice who act as role models for the other youth throughout the entire department.  The South Carolina Law Enforcement Officers’ Association Foundation will provide $50.00 awards to each division winner; and the overall winner, Alyssa Earnhardt, a student at C. A. Johnson High School in Columbia, will receive an additional $50.00 award.  All students who participated will receive a Certificate of Appreciation for their submissions.

The annual logo contest is a long-running part of the district’s PSN program and an important prevention initiative that has proven to be an effective way to engage our students in meaningful conversation about preventing gun crimes amongst our young people and ensuring a safe learning atmosphere for our children.  PSN focuses on reducing violent crime in our communities through prevention, enforcement, and reentry initiatives.

View this year’s winning submissions and learn more about the contest at http://www.justice.gov/usao/sc/programs/logowinners.html.

GREENVILLE, South Carolina – Acting United States Attorney M. Rhett DeHart announced today that the United States Attorney’s Office secured two guilty verdicts in two separate cases, on the same day, in the same courtroom, and before the same judge.  Specifically, separate federal juries convicted Zavien Lenoy Canada, 38, and Kendrick Omar Cobb, 31, both of Greenville, each for being a felon in possession of a firearm and ammunition.

On Monday morning, the jury trial for Canada began and continued into Tuesday morning.  When the Canada jury started deliberations Tuesday, the jury trial for Cobb began.  When the Canada jury reached its guilty verdict on Tuesday afternoon, the court paused the Cobb trial to enter the Canada verdict.  The court then resumed the Cobb trial, and the jury found Cobb guilty later Tuesday evening.

According to court documents and evidence presented at Canada’s trial, on January 31, 2020, Canada was the passenger in a vehicle pulled over for a suspended license plate.  Canada was wanted by the United States Marshals for absconding federal supervised release.  Shortly upon exiting the vehicle, Canada fled on foot before being apprehended by officers of the City of Greenville Police Department.  During the search of the vehicle, police found a .45 caliber pistol and a magazine loaded with .45 caliber ammunition.  Canada was arrested at the scene and taken into custody.  Correction officers at the Greenville County Detention Center recovered 3.55 grams of crack cocaine in Canada’s pants.

According to court documents and evidence presented at Cobb’s trial, on the afternoon of March 25, 2018, deputies with the Greenville County Sheriff’s Office conducted a search warrant at Cobb’s residence and recovered a loaded 9mm pistol under the mattress of a bed.  Cobb later admitted that the gun was his.

Due to their criminal histories, both Canada and Cobb are prohibited from possessing a gun or ammunition.

Senior United States District Judge Henry M. Herlong, Jr. presided over both trials and will sentence Canada and Cobb after receiving and reviewing pre-sentence reports prepared by the United States Probation Office.  Canada likely faces at least fifteen years in federal prison, and Cobb faces up to ten years in federal prison.  During the trial, the court took numerous safety measures in light of the pandemic.  Large, plexiglass shields separated the jurors, the movement of attorneys about the courtroom was limited, and attorneys and witnesses wore masks unless they were speaking.

“Having two trial teams argue two separate cases in the same courtroom and getting verdicts on the same day is likely a first in this district,” said Acting U.S. Attorney DeHart.  “I commend the work of those trial teams and thank the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and our law enforcement partners for their work in bringing these armed criminals to justice, especially during a pandemic.  I also want to acknowledge the efforts of the presiding judge, who went to great lengths to ensure the safety of the jurors, lawyers, witnesses, and others involved in the case.  These verdicts show that this office will do whatever it takes to keep the people of South Carolina safe.”

“This is a double win for our law enforcement partners and for public safety,” said ATF Special Agent in Charge Vince Pallozzi.  “These were very productive, collaborative investigations and each of these convictions takes a very dangerous offender off our streets.” 

The ATF is investigating both cases with the assistance of the City of Greenville Police Department in Canada’s case and the Greenville County Sheriff’s Office in Cobb’s case.

Assistant U.S. Attorneys Justin Holloway and Ben Garner are prosecuting the Canada case, and Assistant U.S. Attorney Max Cauthen is prosecuting the Cobb case.

The cases are being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Charleston, South Carolina --- Acting United States Attorney M. Rhett Dehart announced today that Karen Rhett, 58, of Mount Pleasant, pled guilty to federal charges involving the embezzlement of over $1,000,000 from Simmons Realty Company and its owners, while Rhett served as the Charleston real estate company’s bookkeeper.

Evidence presented in court showed that, from the mid-1990s, Rhett managed and controlled the finances, payroll, and tax preparation for Simmons Realty and all related entities.  During the course of her employment, Rhett engaged in a complex embezzlement scheme – starting by falsifying the business ledgers to move money to her personal accounts and evolving into augmenting her salary, stealing directly from other employee’s paychecks, and stealing from the other Simmons Realty related entities. 

According to a review by the Federal Bureau of Investigations (FBI) and the Internal Revenue Service (IRS) of bank records, checks, and other financial documents, including the hard drive Rhett used during the course of her employment, Rhett stole more than $1 million from Simmons Realty Company, its owners, and related entities.  On the hard drive, agents recovered detailed spreadsheets Rhett maintained regarding the amount of money she was stealing, where the money came from, and how she falsified the business ledgers.

In addition to the money stolen with the embezzlement scheme, evidence presented showed that Rhett never reported the income on her taxes and failed to pay more than $380,000 in taxes during the course of the scheme.

Rhett faces a statutory maximum of 20 years in prison on the charges and potential financial penalties.  With the guilty plea, Rhett has also agreed to forfeit over $640,000.

The case was investigated by the FBI and the IRS.  Assistant United States Attorney Emily Limehouse is prosecuting the case.

Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that the U.S. Attorney’s Office for the District of South Carolina and the Department of Justice’s Office for Victims of Crime is joining communities nationwide in observing National Crime Victims’ Rights Week, an annual celebration of victims’ rights, protections and services.  This year’s observance takes place April 18-24 and features the theme, “Support Victims. Build Trust. Engage Communities.”

“A very important part of the U.S. Attorney’s Office is working hand-in-hand with victims of crime, supporting their needs and protecting their rights, while ensuring justice is served for them,” said Acting U.S. Attorney DeHart.  “As the theme of this year’s National Crime Victims’ Rights Week highlights, successes in our office come from, in part, the partnership with not only other law enforcement agencies but also with the public.  Particularly during this week, we celebrate those in our community who, though victims of crime, remain engaged and stand firm in partnership with law enforcement to ensure justice is realized.”

“Advocacy through community engagement is key to fully serving victims,” said Clarissa Whaley, the U.S. Attorney’s Office’s  Victim Services Manager.  “While we seek the public’s involvement throughout the year, we especially encourage community partners during National Crime Victims’ Rights Week.  Be it through education initiatives or advanced training opportunities, the community has the ability to make a major impact on supporting victims and seeking justice.”

This year marks the 40th annual observance of Victims’ Rights Week, proclaimed first in 1981 by President Ronald Reagan to put crime victims' rights, needs and concerns in a prominent spot on the American agenda.  President Reagan’s establishment of the President’s Task Force on Victims of Crime laid the groundwork for a national network of services and legal safeguards for crime victims.

Today, the Office for Victims of Crime, part of the Justice Department’s Office of Justice Programs, supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory.  In South Carolina, the U.S. Attorney’s Office works not only with its federal partners but also its state partners including the South Carolina State Human Trafficking Task Force, the South Carolina Victims Assistance Network, and the South Carolina Attorney General’s Office of Crime Victims’ Compensation to provide essential services to victims, victim compensation, and many other resources.

Despite the COVID-19 pandemic, the United States Attorney’s Office for the District of South Carolina provided over 9,000 victim services, including 200 community events, in 2020.

“The last year has undoubtedly been challenging,” said Office for Victims of Crimes Acting Director Katherine Darke Schmitt.  “Victims were often isolated from family, friends, and support systems, and victim service providers grappled with strained resources and formidable barriers to victim outreach and care. So I am particularly proud to once again celebrate the accomplishments of the victims’ rights movement, and to honor the strength and resiliency of victims and service providers.”

“This year’s theme—Support Victims. Build Trust. Engage Communities.—emphasizes the importance of leveraging community support to help victims of crime,” continued Acting Director Schmitt.  “Criminal justice and victim service professionals, businesses, healthcare providers, educators, policymakers, houses of worship, and a host of other social and civic groups can work together to ensure that survivors of crime receive the holistic services and support they need. This not only helps the individual heal, but it also improves community safety and wellbeing.  In recognition of National Crime Victims’ Rights Week, we invite you to join us in renewing your commitment to respond to crime and violence by helping victims find not only support, recovery, and justice, but also a sense of hope for their future.”

 

#####

Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart and Federal Bureau of Investigations Special Agent in Charge Susan Ferensic announced today that South Carolinians, particularly those in the Lowcountry and Pee Dee Region, should be on alert for scammers impersonating law enforcement to steal money and identities of victims.

It has been recently reported that callers will “spoof,” or fake their phone numbers, so the calls appear to come from a local police department.  They will also provide information like the names of actual law enforcement officers and badge numbers.  These scammers sometimes research professional and personal information of the victim, on social media or other open-information sources, to gain trust or make their schemes more believable.

When trust is established, the scammers will attempt to collect money with prepaid debit cards like GreenDot MoneyPak or gift cards to rectify whatever situation the victims are told they are in – such as failing to report for jury duty, failure to appear as an expert witness to a court hearing, or other offenses.  The scammers then stay on the phone with the victim, while the victim is instructed to purchase and until the victim provides the prepaid debit card to satisfy the fine.

Although these types of scams have historically targeted the elderly, the recent iteration has primarily focused on professionals, including threatening professionals with the loss of their professional credentials in addition to the identity and monetary theft.

“The best defense to these scams is knowledge and vigilance,” said FBI Special Agent in Charge Ferensic.  “Citizens should understand law enforcement will not demand payment of money by way of phone call or email.  Suspicious solicitations of this type should be reported to the police or IC3.GOV, a web site maintained by the FBI.  We will continue to investigate these complaints and track down the perpetrators.”

To avoid falling victim to such crimes and to help prevent further fraud of this type, Acting U.S. Attorney DeHart offers the following tips:

• Make your social media accounts private and only accept requests and messages from people you know.

 

• Be wary of answering phone calls from unrecognizable numbers.

 

• Call, on another phone, the number that you were called from to confirm the legitimacy of the caller and reason for the call.

 

• Know that a police department or law enforcement officer will never solicit money – particularly through gift cards – from the public.

 

• Never give your personal information, including banking information – to someone over the phone.

 

• Do not send money to people or organizations that you do not personally know and trust.

 

• If you receive a call that appears to be government impersonation fraud, disconnect without providing any personal information and without adhering to the caller’s instructions

 

• Contact your local police department immediately to report the fraud by calling 911.

 

• Submit complaints to the FBI at ic3.gov and the Federal Trade Commission, which collects fraud reports nationwide, at reportfraud.ftc.gov.

 

• Warn family, friends, and associates about the scam, so they can be on high alert.

 

#####

Columbia, South Carolina ---- Acting United States Attorney M. Rhett Dehart announced today that William Bernard Wright, a/k/a “Willie” Wright, a/k/a “Quentin Mitchell,” 28, of Gaffney has been sentenced to more than eight years in federal prison, bringing resolution to federal and state criminal cases against Wright for the shooting of a South Carolina Highway Patrolman in 2019.

On Tuesday, April 13, 2021, United States District Judge Mary Geiger Lewis sentenced Wright to 98 months in federal prison, to be followed by the statutory maximum of 36 months of court-ordered supervision, following a conviction for felon in possession of a firearm and ammunition.  Wright’s 98-month federal sentence represents the statutory maximum of 10 years with credit for 22 months’ time served on the state sentence for the same conduct, as provided for in the federal sentencing guidelines. 

On December 9, 2020, Wright was sentenced to 35 years in state prison, following convictions in the state court system on four charges: attempted murder, possession of a weapon during a violent crime, possession of a weapon by a convicted violent felon, and failure to stop for blue lights.

Wright will serve the federal sentence concurrent to the state sentence.

“Law enforcement officers risk their lives daily to protect and serve our communities,” said Acting U.S. Attorney DeHart.  “We will bring the full force of justice against anyone who attempts to take the life of a law enforcement officer in South Carolina.  The resolution in these cases could not have been possible without the incredible partnership between the U.S. Attorney’s Office, the 16th Circuit Solicitor’s Office, ATF, SLED, and South Carolina Highway Patrol.”

“This case highlights the dangers our dedicated men and women in law enforcement face every day, and we are grateful for the collaborative process that helps bring to justice those responsible for such senseless crimes,” said ATF Special Agent in Charge Vince Pallozzi.  “We applaud Trooper Wise’s bravery and recovery.”

”This officer-involved shooting underscores the sacrifice of serving and the dangers our law enforcement face on the job each day,” said Colonel Chris Williamson, Commander of the South Carolina Highway Patrol.  “The South Carolina Highway Patrol commends the decisive and brave actions of Trooper Paul Wise when he was fired upon during this incident.  The department is grateful to the U.S. Attorney’s Office and the 16th Circuit Solicitor’s Office for their commitment to seeing justice served in this case.”

Evidence presented to the U.S. District Court showed that on June 2, 2019, Wright was in possession of a FN Herstal, model Five-Seven, semi-automatic pistol and 5.7 x 28mm ammunition at a time he was prohibited under federal law from possessing a firearm or ammunition based on numerous prior felony convictions.  At approximately 8:00 PM on that day, Trooper Paul Wise with the South Carolina Highway Patrol was on routine patrol in York County when he observed Wright operating a vehicle without a seatbelt.  When Trooper Wise attempted to initiate a traffic stop, Wright fled and failed to stop for blue lights.  Wright took the trooper on a car chase before bringing his car to a stop at the end a dead of a road.  Wright then exited his vehicle, drew the firearm, pointed it at close range towards the patrolman’s front windshield.  Wright then discharged at least 12 rounds at Trooper Wise.  Trooper Wise was struck in his ballistic vest in the chest area and sustained other injuries to the right side of his neck.  As Wright began to flee, Trooper Wise exited his vehicle, returned fire, striking Wright, ordered Wright to the ground, and then called for backup.

Evidence presented also indicated Wright had numerous convictions prior to the shooting of Trooper Wise, to include pointing and presenting a firearm (2007); assault and battery (2008); discharging a firearm within city limits and unlawful carry of a pistol (2008); resisting arrest (2011); attempted murder, attempted armed robbery, and criminal conspiracy (2013); and assault and battery – second degree (2017).  Evidence presented in court indicated Wright had only been out of custody from a prior conviction for about 10 months, and that he had a history of criminal acts or misconduct while in custody and while on supervision.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the South Carolina State Law Enforcement Division (SLED) and the South Carolina Highway Patrol.  Assistant United States Attorney Elliott B. Daniels prosecuted the federal case.  Deputy Solicitor Willy Thompson prosecuted the state case.

The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

 

#####

Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Robert Anton Warren, 26, of Mullins, was sentenced to over six years in federal prison after pleading guilty to possessing a firearm and ammunition as a felon.

Evidence presented to the court showed that on October 13, 2019, a sergeant with the Mullins Police Department was patrolling the area of Academy Street in Mullins when he saw a car that had no tag lights on the license plate.  The sergeant initiated a traffic stop and made contact with the driver, who only had a beginner’s permit and had no licensed driver in the car.  The sergeant also noticed that the expiration date on the tag was incorrect and appeared to have been altered.  The sergeant issued the driver citations and asked the driver and passenger, Robert Warren, to step out of the car.  Because the car was not registered, the sergeant proceeded with having the car towed.  During an inventory of the car, the sergeant located an extended magazine with seven rounds of 9mm ammunition under the passenger seat where Warren had been sitting.  The sergeant conducted a pat-down of Warren for weapons but did not locate any.  Another officer who had arrived on scene to assist attempted to detain Warren, and Warren ran.  After Warren ran, officers located a 9mm handgun in the grass in a nearby ditch.  The firearm had one round in the chamber.  Warren is prohibited from possessing firearms and ammunition based on his prior convictions for strong arm robbery and possession of a stolen pistol. 

Chief United States District Judge R. Bryan Harwell sentenced Warren to 78 months in federal prison, to be followed by 36 months of court-ordered supervision.  There is no parole in the federal system.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Mullins Police Department, and the Marion County Combined Drug Unit.  Assistant United States Attorney Lauren Hummel prosecuted the case.

The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

 

#####

Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart. announced that Eric Jahann Nixon, 39, of Columbia, was convicted Friday by a jury following a three-day trial in federal court in Columbia.  Nixon was convicted of being a felon in possession of a firearm and ammunition, as well as possession of crack cocaine.

Evidence presented in court showed that at approximately 7:00 PM on Friday, October 16, 2020, Columbia Police Department officers responded to Wash City Laundromat off Broad River Road after receiving a number of 911 calls about a man brandishing a firearm and assaulting a 65-year-old female attendant at the laundromat.  At the scene, officers were approached by witnesses who provided a detailed description of the man and also provided officers with a cellphone video taken of him during the incident.  A screenshot of the man from that cellphone video was distributed to other officers who were canvassing the area in search of him.  A short time later, an officer encountered the man walking nearby and placed him in investigative detention.  During a lawful pat-down search of the man, officers recovered a loaded Hi-Point .380 caliber handgun in the man’s waistband of his shorts.  A further search revealed a pill bottle containing a baggie of 3 grams of crack cocaine and a razor blade.  The man was later identified as Eric Jahann Nixon. Surveillance video from the Laundromat confirmed that Nixon was the man who pulled a handgun from his waistband and assaulted the laundromat attendant.

Nixon is a felon and prohibited from possessing firearms and ammunition under federal law based upon prior state and federal convictions. Nixon’s prior convictions include: possession of a stolen motor vehicle (1998, Lexington County), conspiracy to commit money laundering (2005, federal conviction in Columbia), assault and battery of a high and aggravated nature (2005, Lexington County), throwing bodily fluid on correctional officer (2005, Lexington County), indecent exposure to adult (2010, federal conviction in West Virginia), forgery (2013, Lexington County), distribution of crack cocaine near a school (2016, Richland County), and unlawful carrying of a firearm (2018, Richland County).

Nixon faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on the felon in possession of a firearm and ammunition charge.  Due to a prior felony drug offense, Nixon faces a minimum 15 days to maximum of 2 years imprisonment and a fine of $2,500 on the possession of crack cocaine charge.

Senior United States District Judge Cameron McGowan Currie of Columbia presided over the trial and will impose sentence after she has reviewed the presentence report, which will be prepared by the United States Probation Office.  According to court filings, the sentencing is scheduled for July 13, 2021.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Columbia Police Department and prosecuted by Assistant United States Attorney Stacey D. Haynes.  Witnesses at trial also included representatives from the South Carolina Law Enforcement Division (SLED), the South Carolina Department of Corrections (SCDC), the South Carolina Department of Probation, Pardon, & Parole Services, the Lexington County Clerk of Court’s Office, the United States Probation Office, and the Federal Bureau of Investigation (FBI).

The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

#####

Charleston, South Carolina --- With the Drug Enforcement Agency (DEA) 20th National Prescription Drug Take Back Day set for Saturday, April 24, Acting United States Attorney M. Rhett DeHart is urging the public to participate in the semi-annual event and remove opioids and other medicines from homes where they could be stolen or abused by family members and visitors.

Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisoning and overdoses due to these drugs.  Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.  Additionally, according to new numbers from the CDC, opioid overdose deaths have increased during the pandemic.

“Because expired, unused, and unwanted medicines that languish in home cabinets are highly susceptible to abuse and misuse, the public is encouraged to participate in the spring DEA Drug Take Back Day,” said Acting U.S. Attorney DeHart.  “Taking advantage of the safe, convenient, and anonymous means of disposing of prescription drugs can not only protect you but also your family and friends.”

On Saturday, April 24 from 10:00 AM to 2:00 PM at more than 50 locations across South Carolina, the DEA and its partners will collect tablets, capsules, patches, and solid forms of medication.  Vaping devices and cartridges will also be accepted, so long as the lithium batteries are removed.  Liquids including intravenous solutions and syringes, as well as illegal drugs, will not be accepted.  All collection sites will adhere to local COVID-19 guidelines and regulations to maintain the safety of all participants and local law enforcement. 

For more information about the event and to find a collection site, visit DEATakeBack.com or call 1-800-882-9539. 

#####

Columbia, South Carolina --- Acting United States Attorney for the District of South Carolina M. Rhett DeHart announced today that Doctors Care, P.A. (“Doctors Care”) – South Carolina’s largest urgent care provider network – and its management company, UCI Medical Affiliates of South Carolina, Inc. (“UCI”), will pay $22.5 million to resolve civil allegations of healthcare fraud in violation of the False Claims Act. 

The case began with a whistleblower complaint alleging that Doctors Care, UCI, and UCI Medical Affiliates, Inc. (a related holding company), falsely certified that certain urgent care visits were performed by providers who were credentialed to bill Medicaid, Medicare, and TRICARE for medical services.  Whereas, the services were performed by non-credentialed providers, according to the complaint.

Federal health insurance companies require physicians and midlevel providers to apply for and receive approval to bill any services to the insurer.  This approval is known as a provider’s “billing credentials.”  Providers are obligated to renew these billing credentials periodically and must obtain new credentials with new employment. 

As early as 2013 and continuing to 2018, it is alleged that UCI was unable to secure and maintain necessary billing credentials for most Doctors Care providers.  UCI knew that federal insurance programs would deny claims submitted with the billing number of a provider who had not yet received their billing credentials.  But instead of solving its credentialing problem – or holding claims while a temporary solution could be found – UCI allegedly submitted the claims falsely, “linking” the uncredentialed rendering providers to credentialed billing providers in order to get the claims paid. 

With each “linked” bill, it is alleged that UCI knowingly submitted a false claim for payment.  Evidence obtained in support of the allegations includes emails memorializing UCI’s “linking” scheme and well-organized “cheat sheets,” as employees called them, which UCI used to keep track of properly-credentialed billing providers whose names could be substituted on uncredentialed providers’ bills.

The “billing credentials” at issue in this case are distinct from a provider’s degree or license to practice medicine.  There is no evidence in this case that any Doctors Care provider lacked a medical license or that patient care was compromised due to the conduct at issue.

“When healthcare companies do business with the federal government, they must follow the rules like everyone else,” said Acting U.S. Attorney DeHart.  “All companies with this distinction – regardless of size – should honor their commitment to provide competent care to the full letter of the law.  Our office will continue to protect tax dollars and ensure the rule of law is followed.”

“Taxpayers and Medicare patients rightly expect medical providers to be properly credentialed before billing for their services,” said Derrick L. Jackson, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (“HHS-OIG”).  “Working with our law enforcement partners, we will continue protecting Federal healthcare programs.”

"The results of this investigation exemplify the commitment of the United States Department of Defense Criminal Investigative Service (“DCIS”) and its law enforcement partners to root out fraud and corruption involving unscrupulous companies that undermine the integrity of the Department of Defense," said Special Agent in Charge Christopher Dillard of the DCIS Mid-Atlantic Field Office.  "This case should serve as a stark warning to those who attempt to exploit Department of Defense resources for personal gain."

The settlement of $22.5 million is the result of over three years of investigation, led by the United States Attorney’s Office in coordination with the HHS-OIG and DCIS.  Upon receiving the first investigative subpoena in early 2018, management for UCI and Doctors Care acted promptly to investigate and stop the conduct subject to this settlement.

In addition to the monetary settlement, UCI and Doctors Care also entered into a Corporate Integrity Agreement with the Office of Inspector General.  Among other things, the Corporate Integrity Agreement requires that for the next five years UCI must retain an Independent Review Organization to perform a claims review in accordance with the specific requirements of the Corporate Integrity Agreement, and it requires that UCI routinely be monitored by the Office of Inspector General.

This matter was investigated and negotiated by Assistant United States Attorney Brook Andrews and Assistant United States Attorney Nancy Cote, with the assistance of Special Agent Ryan Schubert of HHS-OIG and Special Agent Doyle Mullis of DCIS.  The whistleblowers were represented by Bert Louthian, John Simmons, Bill Nettles, and Fran Trapp.

The case is captioned United States ex. rel. Dove v. UCI Medical Affiliates, Inc., et. al, 2:17-cv-02291-RMG (D.S.C.).  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

 

#####

Columbia, South Carolina --- Acting United States Attorney for the District of South Carolina M. Rhett DeHart announced today that the Columbia Division of the Federal Bureau of Investigation (FBI) has recognized Assistant United States Attorney Benjamin Garner for his work in the prosecution of nearly 100 violent street gang members of a major cocaine and crack cocaine trafficking conspiracy operating throughout South Carolina’s Midlands.

“The work of Assistant United States Attorney Benjamin Garner, as well as the support of Assistant United States Attorney Jane Taylor and Supervisory Legal Administrative Specialist Shana Greenway, on ‘The Movement’ prosecution represents the best of our office,” said Acting U.S. Attorney DeHart.  “‘The Movement’ case also highlights the incredible collaborative efforts of local, state, and federal law enforcement agencies to make our communities safer and better places.”

After many drug-related shootings in a confined area led the Sumter Police Department to connect a group of individuals to a gang-style operation in the area known as “The Movement,” federal assistance was sought.  Through the collaboration of local, state, and federal law enforcement agencies, over a dozen cocaine suppliers for the drug dealers in the area were apprehended and pled guilty to federal drug charges.  The investigation then led to the arrest of more than three dozen individuals and the seizure of almost 20 pounds of cocaine and $9 million in drug money, followed by the prosecution of an additional thirty-eight defendants.  In total, federal charges were brought against 91 defendants for drug and firearm offenses with “The Movement” case.

#####

 

Columbia, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that his office has resolved claims that RPh Now, LLC d/b/a/ The Medicine Shoppe of Georgetown failed to abide by recordkeeping requirements of the Controlled Substances Act.  RPh Now, LLC will pay $24,500 to resolve the claims and agrees to comply with heightened reporting requirements for a two-year period.

“Pharmacies have a duty to ensure legally compliant tracking and dispersing of controlled substances,” said Acting U.S. Attorney DeHart.  “Adhering to proper recordkeeping and prescription review is essential to helping fight the opioid epidemic.  Our office will continue to work with our federal partners to see that doctors and pharmacies assist in preventing the abuse and diversion of controlled substances.”

This matter was investigated by the Drug Enforcement Administration’s Columbia District Office Diversion Group and Assistant United States Attorney Beth Warren.

The claims resolved by this settlement are allegations only.  RPh Now, LLC does not admit wrongdoing or liability.

 

#####

Charleston, South Carolina --- Following the recent sentencing of a Cheraw man for transferring obscene material to a minor, Acting U.S. Attorney M. Rhett DeHart urges the public to take necessary precautions to keep themselves and their families safe from online predators.

“Be it through social media or other online messaging apps, predatory criminals have used sly communications efforts to victimize neighbors including children,” said Acting U.S. Attorney DeHart.  “Our office urges the public to utilize the FBI Safe Online Surfing Program that covers important topics like cyberbullying, passwords, malware, and social media, while also understanding and following measures proven to help protect them in the consistently-evolving technological world.”

Acting U.S. Attorney DeHart offers the following advice for families to utilize to keep their families safe:

Advice for Children

1. Keep your accounts private.
2. Do not accept requests from strangers. Block or ignore messages from strangers.
3. Be selective about the information and pictures you share online. Know and assume that any content you create online – texts, photos and/or videos – can and will be made public, permanently.  Nothing "disappears" online.  Once you send something, you have no control over where it goes.
4. Understand that people can pretend to be anything/anyone online and that images can be altered or stolen.
5. Be suspicious and stop communicating if you meet someone on one app, and they ask you to move to a different platform.
6. If you feel overwhelmed or victimized, do not hesitate to ask for help, including that of law enforcement.  Do not feel ashamed to report crimes.
7. Immediately report anything you may believe is illegal to your local police department or to the FBI at 1-800-CALL-FBI (225-5324) or https://tips.fbi.gov.

Advice for Adults

1. Openly communicate with your children about online activity and possible victimization.
2. Place limits on internet use and consider shutting down Wi-Fi overnight.
3. Know and maintain passwords to phones, tablets, and computers.
4. Spot check phones, tablets and computers and know what apps are being used and what is being downloaded.
5. Ensure social media settings are set at the strictest level possible.
6. Monitor who is in communication with your child and what is being said.
7. Immediately report anything you may believe is illegal to your local police department or to the FBI at 1-800-CALL-FBI (225-5324) or https://tips.fbi.gov.

#####

More information on the FBI Safe Online Surfing Program can be found at: https://www.fbi.gov/about/community-outreach/safe-online-surfing-sos-program.

Anderson, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that Michael Lambert Seabrooke, 37, formerly of Barnwell, was sentenced to 12 years in federal prison after pleading guilty to possession of explosive devices and two counts of malicious damage and attempt to damage by means of explosive materials.

Evidence presented in court established that on July 7, 2019, a Pickens Police Department officer, after hearing an explosion, located a destructive device in a fenced-in area of the Pickens County Courthouse located at 214 East Main Street in Pickens.  The device had detonated and caused minor damage to the building, but no injuries were reported.  A preliminary investigation indicated the device was made of two metal pipe bombs attached with a belt to a propane cylinder with the valve in the open position.  The pipe bombs detonated but did not ignite the propane.  During a search of the area, law enforcement officers recovered items from the scene including galvanized metal pipes, pieces of pipe endcaps, black plastic bag type material, green plastic bag type material, a propane cylinder, along with propane cylinder hose.

Multiple law enforcement agencies worked together in the investigation to promptly locate the subject responsible.  During the investigation, surveillance video was obtained from nearby businesses.  In the video, a Chevy Silverado pickup truck with a South Carolina license plate was identified as a suspect vehicle.  The vehicle was registered in Columbia; and, on July 9, 2019, the vehicle was located in front of a residence there.  Federal agents maintained surveillance on the vehicle until contact was made with a subject walking to the truck.  A Federal Bureau of Investigation (FBI) Task Force Officer approached the male and identified the subject as Michael Seabrooke.

During an interview, Seabrooke confessed to federal agents that he placed the device at the Pickens County Courthouse and that he also threw several destructive devices on the roof of the Department of Social Services building in Pickens.  Agents obtained Seabrooke’s consent to search his truck and the bomb squad located two metal pipe bombs and two incendiary devices (Molotov cocktails) inside the vehicle.  During a search of his residence and vehicle, agents located materials consistent with those found on the explosive devices. 

Agents also went to the Department of Social Services building in Pickens where they recovered additional explosive devices consisting of three Molotov cocktails and one detonated pipe bomb that caused minimal damage.

During his interview, Seabrooke was completely cooperative with law enforcement and indicated he placed the devices and acted because he was concerned about issues with the Department of Social Services and his family.

United States District Court Judge Timothy M. Cain sentenced Seabrooke to 144 months in federal prison followed by 36 months of supervised release.  There is no parole in the federal system.

The case was investigated by the Pickens County Sheriff’s Office, the Pickens Police Department, the FBI, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).  Assistant United States Attorney Max Cauthen handled the case.

 

#####

Greenville, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that Jerrod Dupree Lyman, Jr., 30, of Spartanburg, was sentenced to 15 years in federal prison after pleading guilty to being a felon in possession of firearms and ammunition.

Evidence presented in court established that on August 8, 2019, members of the Spartanburg County Sheriff’s Office were looking for Lyman on outstanding warrants.  Deputies observed Lyman come out of a residence in Inman and flee into the woods.  During the chase, deputies observed Lyman carrying a backpack and gave him several commands.  Lyman dropped the backpack but continued to flee.  Lyman was eventually taken into custody.  The recovered backpack contained two loaded 9mm pistols.  Lyman was also in possession of a quantity of methamphetamine.  Due to prior convictions for domestic violence and multiple drug offenses, Lyman is prohibited from possessing firearms and ammunition.  Based on his prior record, the Court sentenced Lyman as an Armed Career Criminal.

United States District Court Judge Timothy M. Cain imposed a sentence of 180 months in federal prison to be followed by 60 months of supervised release.  There is no parole in the federal system.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Spartanburg County Sheriff’s Office.  Assistant United States Attorney Max Cauthen prosecuted the case. 

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

 

#####

Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that, according to the Federal Bureau of Investigation’s 2020 Internet Crime Report, South Carolinians lost more than $30 million to cyber criminals in the past year.  Acting U.S. Attorney DeHart urges the public to remain vigilant of cybercrimes, so they do not fall victim.

“Cybercrimes can inflict lifelong damage to the victims,” said Acting U.S. Attorney DeHart.  “That is why the investigative work of the FBI and the prosecutorial efforts for cybercrime by our office will not end until such crimes come to a halt.  Until that day comes, the public must remain vigilant, particularly during the pandemic, to avoid falling prey to the exploitative cybercriminals.”

The annual report from the FBI noted an increase of more than 300,000 suspected internet crime complaints from 2019, with nearly 800,000 reported in 2020 for reported losses of over $4.2 billion nationwide. 

In South Carolina and across the country, victims lost the most money in 2020 to business email compromise / email account compromise (BEC/EAC), followed by romance scams.  Victims of BEC/EAC crimes in South Carolina reported losses of over $8.3 million, while victims of romance scams in South Carolina reported losses of more than $4.4 million.

2020 also led to the emergence of COVID-19 scams.  Nealy 30,000 complaints by individuals and businesses have been reported across country for crimes related to the pandemic scams.

“The pandemic has unfortunately emboldened cyber criminals to try to take advantage of many neighbors, including those working from home and staying home more often in general,” said Acting U.S. Attorney DeHart.  “Our office encourages South Carolinians and South Carolina businesses to protect themselves with video call security measures and additional ways to protect sensitive information.”

Victims of cybercrimes are encouraged to contact the FBI’s Internet Crime Complaint Center at www.ic3.gov.

#####

South Carolina data from the 2020 Internet Crime Report can be found at https://www.ic3.gov/Media/PDF/AnnualReport/2020State/StateReport.aspx#?s=45.

Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced that Ra’Quan Rasheen Williams, 24, of Columbia, was sentenced to more than eight years in federal prison, after pleading guilty in September 2020 to being a felon in possession of a firearm and ammunition.

Evidence presented in court established that on March 8, 2019, Columbia Police Department officers were conducting a property check at an apartment complex on Alcott Drive in Columbia.  Officers saw Williams and two other individuals near a car in the apartment complex parking lot.  The officers smelled marijuana coming from the area where the car was parked and approached Willliams and the others to investigate further.  During a pat down search of Williams, one officer felt a firearm in Williams’ waistband.  Williams immediately began running from the scene and dropped a 9mm pistol which was recovered by officers on the scene.  Williams was eventually apprehended after a short chase through the apartment complex.  The 9mm pistol that Williams dropped was loaded with 17 rounds of ammunition in a large capacity magazine.  Williams was also found with a quantity of heroin after his arrest.

Williams was prohibited from possessing a firearm or ammunition based on several prior state convictions.  Williams was under community supervision at the time of his arrest, after serving a five-year prison sentence for a 2014 conviction of assault and battery of a high and aggravated nature during an incident in which an individual was shot.  In 2015, Williams was convicted of burglary that included the theft of guns from a residence.  Williams was also convicted in 2018 of carrying or concealing a weapon while he was an inmate at the Lee Correctional Institution in Bishopville.

Senior United States Judge Terry L. Wooten sentenced Williams to 100 months imprisonment for the felon in possession of a firearm and ammunition charge, to be followed by a three-year term of supervised release.  There is no parole in the federal system.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Columbia Police Department.  Assistant United States Attorney Christopher D. Taylor of the Columbia office prosecuted the case.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

 

#####

Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that India Tykeyah-Najee Cuyler, a/k/a “Lady Tank,” 26, of Columbia, was sentenced to more than 15 years in federal prison, after pleading guilty in February 2019 to using a facility of interstate commerce to entice a minor under the age of 18 to engage in sexual activity.

Cuyler’s co-defendant, Donnell Salethian Woodard, a/k/a “Tank,” 33, also of Columbia, was sentenced February 24, 2021, to 25 years imprisonment, after pleading guilty to conspiracy to sex traffic minors and benefiting from sex trafficking of minors.  Woodard was also ordered to pay restitution to the minor victims, register as a sex offender, and will be on supervision for 15 years following service of the term of imprisonment.  There is no parole in the federal system.

“The cruelty of sex trafficking is hard to comprehend, and it must be punished severely,” said Acting U.S. Attorney DeHart.  “This sentence closes the door on the horrific crimes committed by these defendants and demonstrates our commitment to stopping sex trafficking in South Carolina.” 

“Today’s sentencing, along with the previous sentencing of Donnell Woodard, has brought an end to a local child sex trafficking operation,” said Susan Ferensic, Federal Bureau of Investigation (FBI) Special Agent in Charge.  “These hideous crimes are frequently uncovered by local law enforcement.  We thank the Lexington Police Department and the West Columbia Police Department for their vigilance and dedication as they worked alongside the FBI to bring these individuals to justice.  We ask that if anyone sees any indication that a child is being trafficked, they report such to their local law enforcement agency or the FBI.” 

Evidence presented to the court showed that on November 21, 2017, undercover officers with the Lexington Police Department encountered a minor advertising sex via a website.  An undercover officer set up a time to meet with the minor at a local motel, wherein officers observed the minor being dropped off by Cuyler and Woodard.  Officers learned that the minor was 16 years old and a runaway. When Cuyler and Woodard returned to the local motel to pick the minor up, officers placed them both under arrest.  The investigation led to another nearby motel where the second minor, who was also involved in the illegal venture, was located.  The investigation further revealed Woodard and Cuyler were using a cell phone to post photographs and advertisements for commercial sex with the minors on a website and taking a portion of the proceeds.  The investigation further showed that the minors had sometimes up to ten (10) meetings per day at various hotel rooms rented by Woodard.

At sentencing, Cuyler received an obstruction of justice enhancement for 2017 jail phone calls in which she attempted to have another minor assault the minor victims in retaliation for cooperating with law enforcement.  Cuyler also lost her reduction for acceptance of responsibility for pleading guilty after she assaulted another inmate inside the jail, which resulted in a state assault charge.

During the sentencing, United States District Court Judge J. Michelle Childs also ordered Cuyler to make restitution to the victims involved. Following service of her 188-month term of imprisonment, Cuyler will be on supervised release for 15 years and will be required to register as a sex offender.

The case was investigated by the FBI, the Lexington Police Department, and the West Columbia Police Department.  Assistant United States Attorney Stacey D. Haynes of the Columbia office prosecuted the case.

The case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse.  Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.  For more information, please visit www.projectsafechildhood.gov.

 

#####

Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Nathan Branham, 40, of Cheraw, was sentenced to nearly seven years in federal prison after pleading guilty to transferring obscene material to a minor and having his federal supervised release revoked.

Evidence presented to the Court showed that Branham, who was on supervised release for a previous federal conviction for being a felon in possession of a firearm, coerced a 13-year-old minor in Kentucky to speak with him via video chat and threatened to come to her home if she did not expose herself to him. After she complied, Branham exposed himself to the minor.

“This office will always protect children and will act swiftly to prosecute those who seek to do them harm,” said Acting U.S. Attorney DeHart. “I commend the excellent work by the Secret Service and our law enforcement partners in Kentucky and South Carolina. They moved quickly to identify and arrest a repeat offender who was operating across state lines. Our communities are safer because of their work.”

According to evidence presented to the Court, Branham contacted the minor through the online social media application Uplive, a live-streaming platform that allows viewers to broadcast and view real-time videos via their smartphones. Using the screen name Mystic, Branham learned the minor’s age, told the minor he was sixteen years old, and convinced the minor to contact him using the Google Duo video chat application.

As presented to the Court, the minor instantly noticed Branham was an adult male. Although Branham stated that he had a genetic condition that made him look older, the minor ended the call. At that point Branham claimed he could find the minor’s address and threatened the minor into engaging in another call with him. On that call, Branham told the minor to expose herself or he was going to “find out your address and have a little talk to you.” After the minor complied, Branham also exposed himself. The minor reported the matter to her parents. The parents contacted Branham, at which point Branham falsely claimed to be a police officer whose children had initiated the call.

The parents reported the matter to police. The Kentucky Attorney General’s Office Internet Crimes Against Children (ICAC) task force immediately initiated a case in conjunction with the United States Secret Service. The ICAC task force program is a national network of 61 coordinated task forces representing over 4,500 federal, state, and local law enforcement and prosecutorial agencies. The investigation in Kentucky quickly revealed that Branham lived in South Carolina, and within a week he was arrested as part of a joint operation between the Secret Service and the South Carolina Attorney General’s Office ICAC task force.

Branham – who has convictions for indecent exposure and assault and battery of a high and aggravated nature – admitted to engaging in similar interactions with minors on more than thirty occasions and admitted to having had sexual intercourse with a minor when he was 29 years old. Branham had also been released from federal prison only three months earlier after serving more than eight years for being a felon in possession of a firearm. As a result of this conduct, his supervised release was also revoked.

Senior United States District Judge Terry L. Wooten sentenced Branham to 21 months in federal prison for violating his federal supervised release. United States District Court Judge Sherri A. Lydon sentenced Branham to 60 months in federal prison for transferring obscene material to a minor. Judge Lydon ordered that the 60-month sentence run consecutively with the sentence imposed by Judge Wooten, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. After his release, Branham will be required to register as a sex offender.

This case was investigated by the United States Secret Service, the South Carolina Attorney General’s Office ICAC task force, and the Kentucky Attorney General’s Office ICAC task force. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Assistant United States Attorney Derek A. Shoemake of the Florence office prosecuted the case.

 

#####

Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that three former deputies with the Orangeburg County Sheriff’s Office – Carolyn Colter Franklin, 64; Allan Hunter, 52; and Nathaniel Miller Shazier, III, 29 – all from Orangeburg County, were sentenced to multi-year sentences in federal prison for using their positions as law enforcement officers to conspire with who they believed to be members of a Mexican drug cartel.  In addition, Franklin and Hunter were sentenced on federal charges of conspiring to obtain fraudulent U-visas for non-immigrants in exchange for bribes.

“These sentences highlight that no one is above the law,” said Acting U.S. Attorney DeHart.  “Anyone brazen enough to conspire with cartels to commit crimes, especially those placed in public trust, will be met with the full force of the federal government.”

“Those sentenced were trusted by their communities to serve and protect,” said Susan Ferensic, Federal Bureau of Investigation (FBI) Special Agent in Charge.  “Instead, while still wearing a badge, they decided to work on behalf of a drug cartel and facilitate the distribution of illegal drugs.  Keeping to the FBI’s mission, we aggressively pursued this investigation bringing together dedicated Agents and an array of resources to root out corrupt law enforcement officers who dishonor the profession.  The FBI is committed to ensuring law enforcement maintains the trust of the public it serves by never ceasing to pursue the corrupt.”

Evidence presented to the Court showed that, during an undercover operation conducted by the FBI between December 2018 and March 2019, Franklin, Hunter, and Shazier agreed to help protect trucks containing what they believed were drug proceeds derived from narcotics distribution by members of a Mexican drug cartel drug ring.  The members were actually undercover FBI agents.  Additionally, the three agreed to help protect trucks containing kilogram quantities of methamphetamine and cocaine in the future.

Evidence presented in court also showed that, between February 2018 and March 2019, in exchange for bribes, Franklin and Hunter created fraudulent documents for non-immigrants. Specifically, the documents were designed to help the immigrants achieve U non-immigrant status, which, by statute, is reserved for victims of certain crimes who have suffered mental or physical abuse and are helpful to law enforcement in the investigation or prosecution of criminal activity.

Senior United States District Judge Joseph F. Anderson, Jr. sentenced Franklin to 61 months in federal prison, Hunter to 63 months in federal prison, and Shazier to 46 months in federal prison.  Each defendant’s sentence will be followed by 36 months of supervised release.  There is no parole in the federal system.

The case was investigated by the FBI and the South Carolina Law Enforcement Division (SLED).

Assistant United States Attorney Benjamin Garner and Assistant United States Attorney Brook Andrews prosecuted the case.

 

#####

Columbia, South Carolina – Acting United States Attorney M. Rhett Dehart announced today that Ashley Shay Cook, 38, of Lexington, was sentenced to ten years in federal prison after pleading guilty to conspiracy to possess with intent to distribute methamphetamine and cocaine.

Evidence presented in court established that on December 21, 2018, deputies with the Lexington County Sheriff’s Department responded to Cook’s residence in search of a wanted person known to frequent the residence.  After consent to search the residence for the fugitive, law enforcement observed drug paraphernalia in plain view.  Law enforcement obtained and executed a search warrant on the residence and located approximately 241 grams of methamphetamine, approximately 2 grams of cocaine, baggies commonly used to package drugs for individual sales, and digital scales.  After waiving her Miranda rights, Cook admitted to possessing the drugs and making drug sales.  Cook was on probation at the time of the instant offense.

United States District Judge Mary Geiger Lewis sentenced Cook to 120 months in federal prison, followed by 48 months of court-ordered supervision.  There is no parole in the federal system.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Lexington County Sheriff’s Department.  Special Assistant United States Attorney Casey Rankin Smith prosecuted the case.

The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. 

 

#####

Columbia, South Carolina --- Acting United States Attorney for the District of South Carolina M. Rhett DeHart announced today that the United States Court of Appeals for the Fourth Circuit has affirmed a $114 million judgment against Floyd Calhoun “Cal” Dent, III, of Lexington, and his two co-conspirators, all of whom a South Carolina jury found liable for defrauding the federal healthcare programs Medicare and Tricare.

At trial, the United States contended that, when specialty labs Health Diagnostics Laboratory, Inc. (“HDL”) and Singulex, Inc. paid commissions to Dent’s marketing firm, BlueWave, based on the number of blood tests sold, the parties violated the Anti-Kickback Statute.  The United States argued these volume-based commissions constituted “remuneration” intended to induce BlueWave’s sales representatives to sell as many blood tests as possible.  The United States also contended the Anti-Kickback Statute prohibited BlueWave from paying its salespeople for recommending the tests.  By paying these kickbacks, the defendants caused false claims to be submitted to federal healthcare programs for millions of dollars in unnecessary blood tests.  The jury agreed, and now the Fourth Circuit has affirmed the jury’s verdict in a published opinion.

“This is an important victory for patients, the Medicare Program, and American taxpayers,” said Acting U.S. Attorney M. Rhett DeHart.  “Individuals who scheme to defraud our federal health care system must be held personally accountable for their actions.  This judgment, which was affirmed by the Court of Appeals, will send a strong deterrent message that this kind of conduct will not be tolerated.  I am extremely proud of our office, particularly our Affirmative Civil Enforcement section, for its tireless work on this case.  It takes a true team effort to protect the great people of South Carolina.”

“This result underscores the department’s commitment to holding accountable those who pay improper commissions or other financial incentives,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division.  “Kickbacks undermine the public’s trust in the healthcare system and the integrity of federal healthcare programs.”

The Fourth Circuit found the United States “provided abundant evidence as to Defendants’ knowledge and intent” to pay kickbacks.  The court acknowledged that attorneys within HDL and BlueWave warned the defendants that paying commissions to independent contractors might well violate the Anti-Kickback Statute.  The United States also presented sufficient evidence that outside lawyers warned all three defendants about the illegality of the commissions.

The Fourth Circuit also rejected the defendants’ contention that commissions to salespeople can never constitute kickbacks under the Anti-Kickback Statute, and found that the scheme violated the Statute and, in turn, violated the False Claims Act.  Additionally, the court found the defendants’ contention that they were entitled to a new trial based on a variety of purported legal errors in the jury instructions to be “meritless.”

Finally, the Fourth Circuit rejected Dent’s challenge to the district court’s determination that pre-judgment transfers of three properties to Dent’s wife and two corporations controlled by her were fraudulent.  The court upheld the district court’s finding, citing the timing of the transfers, the nominal amount paid for the properties, the fact that the transfers were made to family members, and the fact that the transfers were made several months after Dent knew he was under federal investigation.

The published opinion, U.S. v. LaTonya Mallory et al., No. 18-1811, filed February 22, 2021, may be found at https://www.ca4.uscourts.gov/Opinions/181811.P.pdf.

The appeal was handled by the Appellate Staff of the Justice Department.  The underlying case was handled by Assistant U.S. Attorneys James Leventis, Tina Cundari, and Johanna Valenzuela of the U.S. Attorney’s Office for the District of South Carolina; the Commercial Litigation Branch of the Justice Department’s Civil Division; Health and Human Services, Office of the Inspector General; the Federal Bureau of Investigation; the U.S. Office of Personnel Management Office of the Inspector General; and the Department of Defense Office of Inspector General, Defense Criminal Investigative Service.

The civil lawsuit was filed in the District of South Carolina based on several whistleblower complaints and is captioned United States of America et al v. BlueWave Healthcare Consultants Inc., 9:14-cv-00230-RMG.

#####

 

This case illustrates the government’s emphasis on combating health care fraud.  Tips and complaints from all sources about potential health care fraud, waste, and abuse can be reported to the Department of Health and Human Services at 1-800-HHS-TIPS (800-447-8477) or HHSTips@oig.hhs.gov. 

Charleston, South Carolina – The Department of Justice’s Civil Rights Division and United States Attorney’s Office for the District of South Carolina announced today a settlement agreement with the Charleston County School District to resolve an investigation into complaints that the school district failed to communicate essential information to thousands of Spanish-speaking, limited English proficient (LEP) parents and denied their children full and equal access to the district’s education programs and services. 

The investigation found that the school district often failed to use qualified interpreters to communicate with Spanish-speaking, LEP parents and guardians, even when their need for an interpreter was documented or otherwise evident.  It also found that the school district did not consistently translate essential written information into Spanish, nor did it explain options on important decisions about school programs and services with parents in a language they understood.

The agreement, which stems from the United States’ investigation under Title VI of the Civil Rights Act of 1964 and the Equal Educational Opportunities Act of 1974, will ensure that the school district provides English Learner students and LEP parents the services needed to succeed in the school district’s educational programs.

Under the agreement, the school district, which cooperated at every stage of the investigation and is committed to improving its practices through revised policies and professional development, will:

• Implement effective policies and procedures and provide employees with training to properly identify and meaningfully communicate with LEP parents and guardians;
• Use qualified interpreters and translators at each of the district’s 80 schools and programs to communicate with parents about matters essential to their children’s education and cease relying on family members, untrained staff, and students for such purposes;
• Provide LEP parents with access to documents and information about program offerings, including special education services, in a language they understand at each of the district’s 80 schools and programs;
• Ensure that all parents and guardians knowingly consent to, or decline educational programming and services for, their children; and
• Contact LEP parents and guardians prior to holding special education-related meetings to notify them of the right to have a qualified interpreter at the meeting and translated special-education related documents, at no cost to the parent or guardian.

“Empowering parents and guardians with the information necessary to meaningfully participate in their children’s education is critical to students’ success in school and beyond.  We must continue the work to ensure that all parents have this opportunity, regardless of national origin or English proficiency,” said Pamela S. Karlan, Principal Deputy Assistant Attorney General of the Civil Rights Division.  “We are encouraged by the Charleston County School District’s commitment and cooperation and look forward to continuing to work with the district to implement this agreement and fulfill its promise of equal treatment for all of the district’s students and their parents.”

“The Charleston County School District should be commended for its cooperation with this investigation and for its commitment to its students, parents, and guardians,” said Acting U.S. Attorney for the District of South Carolina M. Rhett DeHart.  “The U.S. Attorney’s Office looks forward to continue working with the school district, as it strives to be a model for other districts in providing full and equal access to information.”

The enforcement of Title VI of the Civil Rights Act of 1964 and the Equal Educational Opportunities Act of 1974 is a top priority of the Department of Justice’s Civil Rights Division. 

Information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. 

Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.

 

#####

Columbia, South Carolina ---- Acting United States Attorney M. Rhett DeHart announced today the official call for submissions for the United States Attorney’s Office’s 18th Annual Project Safe Neighborhoods (PSN) Logo Contest.  The statewide contest welcomes students to illustrate ways to help prevent gun violence in our schools by designing a logo for use on upcoming PSN publications.

The contest is open to all South Carolina grade school students and entries will be categorized into four grade divisions: K-2, 3-5, 6-8, and 9-12 grades.  A winner will be selected from each of the four divisions, and each division winner will receive $50.  An overall winning logo will be chosen from the four division winners and will receive an additional $50 prize for a total of $100.

The winning entries will be selected by a select group of students from the South Carolina Department of Juvenile Justice, who encourage children and promote community awareness of the consequences of juvenile crime.  In addition to the South Carolina Department of Juvenile Justice, the United States Attorney’s Office is proud to partner with the South Carolina Law Enforcement Officers’ Association and the South Carolina Sheriffs’ Association for this year’s contest.

Entries should be consistent with the theme of “Preventing Gun Violence in Our Schools.”  The deadline for submissions is April 2, 2021.  Any student interested in participating in the contest should share that intention with his or her local school, as contest information has been sent to all South Carolina schools.  Applications and contest rules may also be found online at https://www.justice.gov/usao-sc/programs/ceasefire/project-sentry/contest-winners/contest-rules.

PSN focuses on reducing violent crime in our communities through enforcement, reentry, and prevention initiatives.  The annual logo contest is an important prevention initiative that has proven to be an effective way to engage students in meaningful conversation about preventing gun crimes amongst young people and ensuring a safe learning atmosphere for children. More information on the contest and previous years’ winning logos can be viewed at:

http://www.justice.gov/usao/sc/programs/logowinners.html.

#####

Columbia, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that James Sydnor Willis, 40, of Aiken County, was sentenced to 10 years in federal prison for conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine.  

Evidence presented in court established that the Drug Enforcement Administration (DEA) initiated an investigation into the narcotics distribution activities of Kenneth Evans and Eddie Brockington, co-defendants in the case.  Both Evans and Brockington were serving sentences in state prisons at the time of the conspiracy – Evans in the South Carolina Department of Corrections and Brockington in the Georgia Department of Corrections.  Through controlled purchases and other investigative techniques, agents learned that members of the conspiracy purchased and distributed large amounts of methamphetamine and heroin for Evans and Brockington.  Some of the individuals charged were responsible for transporting multi-kilogram amounts of methamphetamine and heroin into South Carolina and then distributing the drugs throughout the state.  Willis was involved in purchasing and distributing methamphetamine in the Aiken County area for Evans.  Willis was arrested several times with methamphetamine nearby.  

United States District Judge J. Michelle Childs sentenced Willis to 120 months in federal prison, followed by eight years of supervised release.  There is no parole in the federal system. 

 The case was investigated by agents of the DEA and the Aiken County Sheriff's Office.  Assistant United States Attorney William K. Witherspoon prosecuted the case.

        

#####

Charleston, South Carolina – By virtue of the Vacancies Reform Act, M. Rhett DeHart is officially Acting United States Attorney for the District of South Carolina, following the resignation of U.S. Attorney Peter M. McCoy, Jr.  Acting U.S. Attorney DeHart formerly served as the District’s First Assistant U.S. Attorney – supervising the Criminal, Civil, Appellate and Administrative Divisions in the District of South Carolina, as well as serving as the primary liaison between the U.S. Attorney’s Office and the Chief U.S. District Judge.

A native of North Augusta, S.C. and a resident of Mount Pleasant, S.C. – Acting U.S. Attorney DeHart has served as an Assistant U.S. Attorney in the District’s Charleston office since 2001, prosecuting a variety of crimes while focusing on white-collar fraud and child exploitation.  The recipient of the United States Attorney’s Award in 2006, 2009, and 2014, and numerous law enforcement awards – Acting U.S. Attorney DeHart has prosecuted hundreds of felonies, authored thirty appellate briefs, tried approximately twenty jury and non-jury trials, and argued seven cases before the Fourth Circuit Court of Appeals.

Prior to joining the Department of Justice, Acting U.S. Attorney DeHart was a Counsel on the United States Senate Judiciary Committee, where he supervised the criminal legislation section.  A graduate of the Honors College at the University of South Carolina, Acting U.S. Attorney DeHart graduated Order of the Coif from the University of South Carolina School of Law.

Acting U.S. Attorney DeHart will serve in the position until a successor is appointed by the President and confirmed by the Senate.

#####

 

Charlotte, North Carolina --- United States Attorney Peter M. McCoy, Jr., of the District of South Carolina and United States Attorney Andrew Murray of the Western District of North Carolina announced that Markuetric Stringfellow, 37, of Powder Springs, Georgia, has been sentenced to 78 months in prison and 3 years of supervised release for defrauding the South and North Carolina Medicaid programs.  In addition to the prison term imposed, U.S. District Judge Kenneth D. Bell also ordered Stringfellow to pay over $5 million as restitution, including more than $700,000 to the South Carolina Medicaid program.

The South Carolina Scheme

According to court documents filed with the U.S. District Court in South Carolina, Stringfellow was a franchise owner of Wrights Care Services LLC (Wrights Care), a qualified provider of Medicaid rehabilitative behavioral health services in South Carolina.  Wrights Care was located at 1320 Main Street, in Columbia, South Carolina, and maintained separate franchise locations throughout South Carolina, including in Spartanburg, Pickens, Cheraw, Society Hill, Bennettsville, Hartsville, and Conway.  In April 2014, Wrights Care became a participating provider in the South Carolina Medicaid program, which allowed Wrights Care to submit claims for behavioral mentoring services reimbursable under Medicaid. 

Starting in or around 2014, Stringfellow and his co-conspirators defrauded the South Carolina Medicaid program by filing fraudulent claims for services that were either not provided, partially provided, or did not qualify for reimbursement.  According to court records, to support the fraudulent reimbursement claims filed with the South Carolina Medicaid, Stringfellow and his co-conspirators submitted falsified patient billing records and fake medical notes.  Furthermore, court records show that after learning there was a Medicaid audit for Wrights Care, Stringfellow and his co-conspirators attempted to deceive South Carolina Medicaid auditors.  In or about March 2015, Stringfellow met other associates of Wrights Care in Columbia for a “note party,” during which the co-conspirators created false and fraudulent billing records to substantiate previously-submitted fraudulent Medicaid claims, forged signatures, and falsified records subject to the audit, which they then submitted to South Carolina Medicaid auditors in response to the audit.

The North Carolina Scheme

In addition to executing a fraudulent scheme in South Carolina, Stringfellow defrauded the North Carolina Medicaid program. According to filed court documents and today’s sentencing hearing, Stringfellow was a resident of Charlotte and Greensboro, North Carolina, and a partner in Everlasting Vitality, LLC (EV) and Do-It-4-The Hood Corporation (D4H).  D4H operated after-school programs in Charlotte, Greensboro, Winston-Salem, and Rocky-Mount, North Carolina. Beginning in or about January 7, 2016, and continuing through November 12, 2018, Stringfellow and his co-conspirators executed a conspiracy to defraud the North Carolina Medicaid program by soliciting illegal kickbacks from various drug testing laboratories, in exchange for referrals of North Carolina Medicaid beneficiaries obtained through the after-school programs operated by EV and D4H.

According to court documents, Stringfellow and his co-conspirators paid individuals to recruit at-risk youths, in particular children who were Medicaid eligible, for EV’s or D4H’s after-school and youth mentoring programs.  Once enrolled, children were required to submit urine specimens for drug testing. Stringfellow and his co-conspirators conspired with certain laboratories to perform the drug testing of the urine specimens submitted in the names of children enrolled at EV and D4H and received kickbacks after the laboratories were reimbursed by the North Carolina Medicaid.

In addition to the kickback scheme, Stringfellow and his conspirators devised a scheme to defraud North Carolina Medicaid by referring clients to laboratories which they knew would file fraudulent claims and receive reimbursement based on drug testing services that did not meet the drug testing policy requirements.  For example, on some occasions, Stringfellow and his co-conspirators obtained personal identifying information (PII) of D4H clients, such as names, addresses, dates of birth, and Medicaid beneficiary numbers, which they provided to drug testing laboratories.  In turn, the laboratories used D4H clients’ PII to submit drug testing claims to the North Carolina Medicaid that were fraudulent because, among other reasons, the drug tests were not medically necessary, or the urine specimens were not of the Medicaid beneficiaries under whose names they were submitted.  Once North Carolina Medicaid paid the fraudulent claims submitted by the testing laboratories for these unauthorized and medically unnecessary drug tests, the labs then paid companies under the control of Stringfellow and others, at an agreed percentage of their Medicaid reimbursement.

In July 2020, the criminal case pending against Stringfellow in South Carolina federal court was transferred to the U.S. District Court for the Western District of North Carolina for further proceedings.  On August 21, 2020, Stringfellow pleaded guilty to conspiracy to commit Medicaid fraud in connection with both federal prosecutions.

Stringfellow will be ordered to report to the federal Bureau of Prisons to begin serving his sentence upon designation of federal facility.

In making today’s announcement, U.S. Attorney McCoy and U.S. Attorney Murray commended the investigative work of the FBI field offices in Columbia, Charlotte, and Atlanta, as well as the Medicaid Investigation Divisions in Columbia, Raleigh, and Atlanta; and thanked the U.S. Attorney’s Office for the Northern District of Georgia for their assistance and coordination.

Assistant U.S. Attorneys Brook Andrews with the U.S. Attorney’s Office in Columbia and Michael Savage with the U.S. Attorney’s Office in Charlotte prosecuted the case.

 

#####

Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Steve Seman Hattar, 57, of Irmo, was sentenced to 19 years in federal prison after pleading guilty to possessing with intent to distribute methamphetamine and possessing a firearm in furtherance of a drug trafficking crime.   

Evidence presented to the Court showed that, on October 31, 2019, officers from Richland County Sheriff’s Department made a traffic stop on a vehicle driven by Hattar and located suspected methamphetamine, heroin, and other narcotics, as well as three firearms and ammunition.  Later that day, law enforcement searched a hotel room used by Hattar and found methamphetamine and other narcotics.  Further investigation revealed Hattar had trafficked some 43 kilograms of methamphetamine and one kilogram of heroin in the six months prior to the traffic stop.  Hattar had previously served a significant sentence for a federal drug crime in another state. 

Senior United States District Judge Joseph F. Anderson, Jr. sentenced Hattar to 228 months in federal prison, to be followed by a ten-year term of court-ordered supervision.  There is no parole in the federal system.

The case was investigated by the Drug Enforcement Administration (DEA) and the Richland County Sheriff’s Department.

Assistant United States Attorney Katherine Flynn prosecuted the case.

 

#####

Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Donnell Salethian Woodard, a/k/a “Tank,” age 33, of Columbia, South Carolina, was sentenced today in federal court to 25 years imprisonment after pleading guilty in September 2019 to conspiracy to sex traffic minors and benefiting from sex trafficking of minors.

Evidence presented to the court showed that on November 21, 2017, undercover officers with the Lexington Police Department encountered a minor advertising sex via a website.  An undercover officer set up a time to meet with the minor at a local motel, wherein officers observed the minor being dropped off by Woodard and India Tykeyah-Najee Cuyler, a/k/a “Lady Tank,” age 26.  Officers placed both Woodard and Cuyler under arrest. The investigation led to another nearby motel where a second minor, who was also involved in the illegal venture, was located.  The investigation revealed Woodard and Cuyler were using a cell phone to post advertisements for commercial sex with the minors on a website and taking a portion of the proceeds.  Woodard and Cuyler were both charged federally.

During the sentencing, United States District Court Judge J. Michelle Childs also ordered Woodard to make restitution to the victims involved. Following service of his term of imprisonment, Woodard will be on supervised release for 15 years and will be required to register as a sex offender. 

Co-defendant India Cuyler previously pled guilty in federal court to using a facility of interstate commerce (a cell phone) to entice a minor under the age of 18 to engage in sexual activity.  Her sentencing hearing is scheduled for March 17, 2021.

The case was investigated by the Federal Bureau of Investigation (FBI), the Lexington Police Department, and the West Columbia Police Department and prosecuted by Assistant United States Attorney Stacey D. Haynes.

It was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.

 

#####

Columbia, South Carolina---- United States Attorney Peter M. McCoy, Jr. announced that Christopher  J. Ford, 49, of Aiken County, was sentenced to 11 years in federal prison for conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine and for violation of his supervised release.  

Evidence presented in court established that the Drug Enforcement Administration (DEA) initiated an investigation into the narcotics distribution activities of Kenneth Evans and Eddie Brockington, co-defendants in the case.  Through controlled purchases and other investigative techniques, agents learned that members of the conspiracy purchased and distributed large amounts of methamphetamine and heroin for Evans and Brockington.  Some of the individuals charged were responsible for transporting multi-kilogram amounts of methamphetamine and heroin into South Carolina and then distributing the drugs throughout the state.  Ford and others were involved in purchasing and distributing methamphetamine in the Aiken County area for Evans.  

United States District Judge J. Michelle Childs of Columbia sentenced Ford to ten years in federal prison, followed by eight years of supervised release.  There is no parole in the federal system. 

Ford had been on federal supervised release for a prior conviction for conspiracy to distribute methamphetamine when he committed this offense.   Judge Childs sentenced Ford to a consecutive 12 months in prison for violating his previous supervised release.

The case was investigated by agents of the DEA and the Aiken County Sheriff's Office.  Assistant United States Attorney William K. Witherspoon prosecuted the case.

        

#####

Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Kevin B. Marsh, former SCANA Corporation (SCANA) Chief Executive Officer and former Chairman of its Board of Directors, pleaded guilty in federal court to conspiracy to commit mail and wire fraud. With the guilty plea, Marsh admits that he intentionally defrauded ratepayers, while he oversaw and managed the company’s operations – including the construction of two reactors at the V.C. Summer Nuclear Station – so that SCANA could obtain and retain rate increases imposed on SCANA’s customers and qualify for up to $2.2 billion in tax credits. 

Today’s plea follows a previous guilty plea by Stephen A. Byrne, former Executive Vice President of SCANA and former Chief Operating Officer of South Carolina Electric & Gas Company (SCE&G), to conspiracy to commit mail and wire fraud, as well as a previously announced agreement with Dominion Energy that will, over time, provide at least four billion dollars of South Carolina ratepayer relief.  It also follows a previously announced settlement by SCANA and SCE&G on a Securities and Exchange Commission lawsuit charging them with defrauding investors by making false and misleading statements about the nuclear plant expansion that was ultimately abandoned.

Today’s plea is the result of an exhaustive and multi-year joint investigation by the U.S. Attorney’s Office, South Carolina Attorney General’s Office, Federal Bureau of Investigation (FBI), U.S. Securities and Exchange Commission (SEC), and South Carolina Law Enforcement Division (SLED). 

“Every day, this office protects South Carolinians from criminals of all types,” said U.S. Attorney McCoy.  “Our office will always seek justice for those victimized by individuals or entities that misuse positions of trust and responsibility.  Today’s plea shows that no one, not even a Fortune 500 CEO, is above the law. Of course, our efforts in this case would not be possible without the support of our federal and state law enforcement partners.”

“Today’s plea is another step in bringing to justice those individuals responsible for this vast and audacious fraud that impacted so many people throughout South Carolina and beyond,” said FBI Special Agent in Charge Susan Ferensic.  “The FBI’s work is not done, however.  We will see this case through while we continue to fulfill our mission to investigate and hold accountable those who seek to commit mass fraud and theft.”   

This case arises out of the failed nuclear project at the V.C. Summer Nuclear Station in Jenkinsville, South Carolina.  In 2008, SCANA and its subsidiary SCE&G announced their intention to build two new nuclear units with their minority partner, the South Carolina Public Service Authority, a state-owned public power and water utility commonly known as Santee Cooper.

As evidence presented to the court showed, beginning in November 2011, Marsh was the highest-ranking official within SCANA and, as such, oversaw and managed the company’s operations, including the construction of the two nuclear reactors.

From its inception, substantial delays and cost overruns plagued the project.  No later than late 2016, Marsh knew that efforts by the company’s builder, Westinghouse, to improve the pace and productivity of the project were woefully inadequate.  Marsh learned that at least one unit under construction was in grave jeopardy of not being completed and producing power by December 31, 2020, then the critically important deadline for SCANA to secure federal nuclear production tax credits valued up to $2.2 billion.

With this specific knowledge, using both wires and mail, Marsh conspired with others to defraud customers with misleading statements and omissions.  This includes concealing the truthful status of the failing mega-project and making false and materially misleading statements in late 2016 to the South Carolina Public Service Commission (PSC), the Office of Regulatory Staff (ORS), the financial community and the general public. 

For example, following a December 27, 2016, press release by Toshiba announcing a potential multi-billion dollar writedown related to Westinghouse’s nuclear construction business, Marsh and others received a confidential telephone briefing from senior Westinghouse officials, who indicated Westinghouse’s costs to complete the new units would be significantly higher than expected.  Also on December 27, 2016, Marsh received a separate briefing from a senior Toshiba official indicating that Toshiba could not absorb the financial hit suggested by new estimates from Westinghouse’s subcontractor of the work remaining on the project.  These briefings led Marsh to believe there existed a heightened risk of further construction delays.  Yet, on December 29, 2016, when the ORS requested detailed information from SCANA regarding the construction schedule for both units, Marsh and his coconspirators fraudulently withheld the information provided by Westinghouse and Toshiba.

In the plea agreement, Marsh agrees to cooperate fully with federal, state, and local law enforcement agencies. He also agrees to testify fully and truthfully before any grand juries until the investigation and prosecution in the criminal acts that occurred in relation to the failed V.C. Summer Nuclear plant expansion are complete.  Additionally, in the plea agreement, prosecutors and Marsh recommended a five million dollar forfeiture.

On the federal charge, Marsh faces a maximum penalty of five years in prison, a fine of up to $250,000, and supervised release of up to 3 years.

United States District Judge Mary G. Lewis accepted the guilty plea and will sentence Marsh after receiving and reviewing a sentencing report prepared by the United States Probation Office.

Assistant United States Attorneys Jim May, Brook Andrews, Winston Holliday, and Emily Limehouse are prosecuting the case in federal court, along with Special Assistant United States Attorney John O’Halloran.

 

#####

us_attorney_mccoy_prepared_remarks.pdf

 

Charleston, South Carolina – United States Attorney for the District of South Carolina Peter M. McCoy, Jr., has announced that he will be resigning as U.S. Attorney effective 11:59 p.m. on February 28, 2021.

“It has been the honor of my lifetime to serve our great nation and our beloved State of South Carolina as United States Attorney,” said U.S. Attorney McCoy in a resignation letter to the President.  “Working daily with the dedicated public servants of this office to impartially enforce the rule of law, defend our Constitution, and make our communities safer is a privilege for which I will be forever grateful.”

U.S. Attorney McCoy began his service as U.S. Attorney on March 30, 2020, being first appointed Interim U.S. Attorney and then receiving unanimous confirmation by the Senate.  Before being sworn in as U.S. Attorney, he served as the Chairman of the Judiciary Committee in the South Carolina House of Representatives and as an attorney in private practice. Prior to his time in private practice, U.S. Attorney McCoy served for five years as a criminal prosecutor in the Ninth Circuit Solicitor’s Office.

As the chief federal law enforcement officer responsible for federal criminal prosecutions and civil litigation involving the United States in the District of South Carolina, U.S. Attorney McCoy led the district of approximately 62 Assistant United States Attorneys, 75 support staff, and 18 contract support staff in four divisions across four offices throughout the state. 

Under U.S. Attorney McCoy’s direction and in spite of a pandemic, the office used focused efforts to make quality cases and targeted fraud, civil wrongdoing, and criminal activity related to the coronavirus; attacked public corruption; fought to keep South Carolina communities safe from gun crimes, violence, and drugs; prosecuted substantial healthcare fraud; placed renewed emphasis on eradicating human trafficking and child exploitation; protected the Constitutional rights of South Carolinians; defended civil lawsuits filed against the United States and its federal agencies; and enhanced partnerships with local, state, and federal law enforcement agencies. 

Among other things, these efforts made communities across South Carolina safer and resulted in charges and convictions against hundreds of defendants. The office also collected more than $54 million for taxpayers in 2020 alone.  Of this amount, $49,000,580.36 was collected in civil actions and $4,839,347.03 was collected in criminal actions. Working with partner agencies and divisions, the office also collected $2,544,402 in asset forfeiture actions.

“Pandemic or not, there was no safe harbor in South Carolina for those who violated federal law on my watch,” said U.S. Attorney McCoy. “This is because the men and women of this office across our criminal, civil, appellate, and administrative divisions, along with our law enforcement partners, worked tirelessly to pursue justice for the people of South Carolina.”

 

CORONAVIRUS FRAUD

Almost immediately after assuming office, U.S. Attorney McCoy established the South Carolina COVID Strike Team – consisting of over a dozen federal, state, and local law enforcement agencies – to civilly and criminally investigate coronavirus fraud schemes, hoarding, and price gouging activities.  The team has reviewed more than 150 matters to date, identified more than $12 million in pandemic-related fraud losses, and recovered more than $3 million in assets.

In one of these matters, seven individuals were charged with laundering over $750,000 of fraudulently obtained funds, including over $390,000 from a Paycheck Protection Program loan.  It marked the 50th PPP-fraud case in the country and identified over $2.1 million in funds which agents seized from twelve different bank accounts.

 

PUBLIC CORRUPTION AND CORPORATE ACCOUNTABILITY

U.S. Attorney McCoy has focused resources and efforts on prosecuting those who seek to enrich themselves on the backs of South Carolina taxpayers or those who use their positions of trust to engage in criminal activity.

Chief among these cases are those stemming from an exhaustive and joint investigation into issues surrounding the construction of the V.C. Summer Nuclear Station, including admissions in court documents that officials conspired with others to lie about the progress of the V.C. Summer Nuclear Station so the SCANA Corporation (SCANA) could wrongly increase rates on hard-working South Carolinians and qualify for up to $1.4 billion in tax credits.

Specifically, Kevin B. Marsh, former SCANA Chief Executive Officer and former Chairman of its Board of Directors, signed a plea agreement and is scheduled to plead guilty on Wednesday, February 24, in federal court to conspiracy to commit mail and wire fraud.  Additionally, Stephen A. Byrne, former Executive Vice President of SCANA, pled guilty in federal court in July 2020 to conspiracy to commit mail and wire fraud under a plea agreement requiring him to cooperate with law enforcement officials.  The agreements to date also include a requirement that Dominion Energy will, over time, provide at least $4 billion in South Carolina ratepayer relief.

Additionally, the office’s civil division worked with the Securities and Exchange Commission to settle a lawsuit against SCANA and its subsidiary SCE&G charging them with defrauding investors by making false and misleading statements about the nuclear plant expansion that was ultimately abandoned.  The proposed settlement would require SCANA to pay a $25 million penalty and require SCANA and SCE&G to pay $112.5 million in disgorgement plus prejudgment interest.

The office has also brought charges, or obtained convictions, in numerous other public corruption matters, including the arrest of a high-ranking police officer for obstructing justice and operating an illegal gambling ring, the arrest of a county councilman for making material false statements in connection to the attempted acquisition of a firearm, the arrest of two individuals for conspiracy to steal personal protective equipment from the Federal Law Enforcement Training Center where they were employed, and a federal prison sentence for a former police chief for stealing seized funds.

 

GUNS/DRUGS/VIOLENCE

One of the primary goals of the U.S. Attorney’s Office is to improve the safety and quality of life for the people of South Carolina.  During U.S. Attorney McCoy’s tenure, the office specifically and methodically targeted serious gun crimes, drug activity, and violence.

In December 2020, a federal grand jury returned a 147-count superseding indictment against 40 defendants across South Carolina in the largest federal racketeering conspiracy in South Carolina history.  The indictment alleges a sprawling criminal enterprise whereby inmates within the South Carolina Department of Corrections orchestrated crimes including murder, kidnapping, firearms distribution, and an international drug operation, often by using contraband cell phones.

The office has also led the way in targeting serious firearms offenses through violent-crime proactive efforts from federal, state, and local agencies.  Of the nearly 100 judicial districts across the country, the U.S. Attorney’s Office for the District of South Carolina was among the top ten offices for the number of defendants who received sentences of five years or more for firearms-related charges.  Further, more than 50% of the defendants charged with firearms-related offenses in the District of South Carolina received sentences of at least five years or more, putting the office among the top U.S. Attorney’s Offices in the country.  Such sentences also show the significant, long-term impact each case can have on the safety of affected communities.

Further, the office also executed numerous takedowns of alleged violent drug gangs after extensive and multi-year investigations targeting the worst types of offenders.  This included the arrests of more than 100 defendants across at least seven major takedowns in the last 12 months alone:

• 48 members of three distinct alleged drug trafficking organizations in the Midlands region;
• 23 members of an alleged drug trafficking organization in Horry County;
• 18 members of an alleged drug trafficking organization in the Myrtle Beach area;
• 12 members of an alleged drug trafficking organization in the Lowcountry region; and
• 10 members of an alleged drug trafficking organization in Chesterfield County.

Additionally, 13 members of a large methamphetamine trafficking conspiracy that operated out of Georgia and the Upstate region received a combined sentence of 145 years.  Hundreds of firearms and hundreds of kilograms of illegal narcotics were seized because of these operations.  These major operations also join the numerous other arrests and convictions of alleged violent drug dealers, including lengthy sentences for individuals who sold drugs resulting in deaths, and federal charges against two men for their roles in a drug conspiracy and the murder of a postal employee while on her mail route.

 

HEALTHCARE FRAUD

In light of the pandemic, healthcare fraud was a major focus for U.S. Attorney McCoy.  The office handled numerous healthcare fraud matters in both the criminal and civil divisions that resulted in millions of dollars in recovered federal funds.

U.S. Attorney McCoy led the office as it worked with the U.S. Attorney’s Office for the Southern District of Georgia to federally charge more than 40 individuals for their roles in in Operation Rubber Stamp, an expansive health care fraud scheme across South Carolina and Georgia resulting in hundreds of millions of dollars in fraudulent billings.  The charges marked the third in a nationwide series of telemedicine fraud prosecutions, which began through investigative efforts out of the District of South Carolina.  Working cooperatively with other federal districts and the Department of Justice’s Health Care Fraud Strike Force, cases have been brought in over 20 Districts across the country, resulting in over 175 individuals being charged and/or convicted, with over a billion dollars in restitution.

Additionally, the Centers for Medicare and Medicaid Services/Center for Program Integrity separately took the largest number of adverse administrative actions resulting from a single administrative health care fraud investigative initiative in history in revoking the Medicare billing privileges of over 250 additional medical professionals for their involvement in telemedicine schemes.  The District of South Carolina alone has ensured that millions of dollars have been returned, or will be returned, to these essential health care programs.

 

HUMAN TRAFFICKING AND CHILD EXPLOITATION

Having fought against human trafficking and child exploitation as a member of the South Carolina House of Representatives, U.S. Attorney McCoy has substantially built upon the office’s work to fight child exploitation and human trafficking.  Under U.S. Attorney McCoy, the office has prosecuted some 50 defendants in trafficking or child exploitation cases and assisted more than 100 victims in the past twelve months alone.  The cases include a nine-victim trafficking case out of Columbia, a multistate case involving the exploitation of a minor over the internet, and allegations against a husband and wife out of Anderson for child sex trafficking. 

For the first time in the District of South Carolina, under U.S. Attorney McCoy’s leadership, the office prosecuted the patrons of human trafficking organizations along with the traffickers themselves.

These cases have required a proactive approach, and thus the office has also worked extensively with law enforcement partners to help identify the signs of human trafficking and child exploitation.  Further, the office’s victim-witness advocates have worked extensively with the victims in these cases, as they do with victims of all federal crimes.  To assist in these efforts, the State of South Carolina received $500,000 in Department of Justice grants to provide safe, stable housing and appropriate services to victims of human trafficking.  These funds were in addition to the more than $33 million in Department of Justice grants to assist victims in the District of South Carolina under U.S. Attorney McCoy’s leadership.

 

PROTECTING CONSTITUTIONAL RIGHTS

U.S. Attorney McCoy has ensured that the office continues to protect the rights of all South Carolinians.  This includes resolving several civil matters alleging that citizens of South Carolina have had their rights violated in areas ranging from education to housing.  During the protests last spring across the country and after the recent protests in Washington, D.C., U.S. Attorney McCoy made clear that his office would always preserve First Amendment rights to free speech and assembly while also protecting South Carolina communities from violence and destruction and assisting in the prosecution of those who disregard the rule of law.  In September 2020, the office charged several individuals with federal charges for participating in actions including arson, inciting riots, and other civil disorder in Columbia and Charleston on May 30 and 31, 2020.  The office has also made substantial efforts toward identifying, and assisting in the prosecution of, those who invaded the U.S. Capitol on January 6, 2021.

 

SUPPORTING LAW ENFORCEMENT

As U.S. Attorney McCoy noted in his resignation letter, his success as U.S. Attorney is directly attributable to his office’s extensive work with federal, state, and local partners.  Across the state, South Carolina has seen firsthand the exceptional work and bravery of its law enforcement community, and unfortunately witnessed several tragedies.  Since U.S. Attorney McCoy took office, more than a dozen law enforcement officers have made the ultimate sacrifice and several others have been wounded in the line of duty.  U.S. Attorney McCoy has remained committed to doing everything in his office’s power to ensure its law enforcement partners have the best training, resources, and support – including mental health support – to keep them safe.

In pursuit of those efforts, the office has worked the Department of Justice to make more than $16 million available to law enforcement agencies and public safety programs in South Carolina.  This includes a $4.5 million grant to fight and prevent violent crime, $8 million to hire 63 additional full-time law enforcement professionals, and $2 million in grants to fund crime laboratories and other forensic needs.

Many of the office’s law enforcement partners expressed their gratitude for the work during U.S. Attorney McCoy’s tenure.

“Peter McCoy has been a committed and selfless ambassador for justice and public service,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Vince Pallozzi.  “Peter’s been a strong supporter of law enforcement and public safety in South Carolina and has been a valuable partner with ATF in the fight against violent crime.”

“The investigative work of the U.S. Secret Service would not be successful without the support of the U.S. Attorney’s office,” said Special Agent in Charge John Hirt, U.S. Secret Service Columbia Field Office.  “U.S. Attorney Peter McCoy has been a dedicated partner to the South Carolina district during one of the most difficult times in our history, and we are thankful for his dedication and support.”

“I am happy to have partnered with U.S. Attorney McCoy, and during his tenure we have investigated and prosecuted numerous significant cases to include child exploitation, human trafficking, narcotics and money laundering,” said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North and South Carolina.  ”His leadership and tireless efforts to support our operations across all case disciplines has been exceptional.”

“Peter McCoy and the United States Attorney’s Office under his leadership has been a tremendous partner of the FBI,” said Susan Ferensic, Federal Bureau of Investigation Special Agent in Charge.  “We wish him well on the next chapter of his professional life.”

“Peter McCoy and I met a decade ago when he was employed as an Assistant Solicitor,” said North Charleston Police Chief Reggie Burgess.  “Peter rode along with our detectives, narcotics and SWAT on a weekly basis; and, whenever we had community meetings, he would be in attendance to witness police and community engagements.  The North Charleston Police Department will truly miss Peter McCoy’s leadership as U.S. Attorney, and we thank Peter for a job well done.”

“I’ve known U.S. Attorney McCoy since before he was appointed U.S. Attorney,” said Richland County Sheriff Leon Lott.  “He has always been very supportive of law enforcement.  Most notable was the support he exhibited throughout the riots in Columbia last year, calling to offer his support and that of his office.  My hope is that the incoming U.S. Attorney is as good and supportive to law enforcement.”

 

ABOUT PETER MCCOY

A Charleston resident, McCoy graduated from Hampden-Sydney College before receiving his Juris Doctorate from Regent University Law School.  His work as a criminal prosecutor in the Ninth Circuit Solicitor’s Office spanned five years and included handling thousands of cases involving violence, guns, and drugs.

As a State Representative, McCoy was the lead sponsor of legislation requiring the mandatory reporting of child sexual abuse, as well as legislation establishing a mandatory minimum sentence for anyone who commits a crime while out on bond.  Additionally, McCoy’s work in the legislature including passing statutes that ensure violent repeat criminal offenders do not remain out on bond if they continue to commit crimes.

U.S. Attorney McCoy thanked Senators Lindsey Graham and Tim Scott for their unwavering support during the appointment process, nomination, and confirmation.

“South Carolina is truly blessed with the leadership of our two United States Senators, as well as those serving our great state in the U.S. Attorney’s Office,” said U.S. Attorney McCoy.  “I depart the office confident that my successor will inherit an incredibly dedicated and talented team and be ready to hit the ground running.”

#####

 

 

mccoy_resignation_letter_signed.pdf

 

Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced that Kevin B. Marsh, former SCANA Corporation (SCANA) Chief Executive Officer and former Chairman of its Board of Directors, is scheduled to plead guilty tomorrow – Wednesday, February 24 – in federal court to conspiracy to commit mail and wire fraud.  The hearing is scheduled for 10:00 a.m. at the Matthew J. Perry Federal Courthouse, 901 Richland Street, Columbia, before the Honorable Mary G. Lewis.

U.S. Attorney McCoy will be available for media questions after the hearing.

 

#####

Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Kevin Richard Dextraze, 32, of Myrtle Beach, was sentenced to nearly three years in federal prison after pleading guilty to possessing a firearm as a convicted felon. 

Evidence presented to the court showed that on February 22, 2019, the Myrtle Beach Police Department received a complaint about a man with a shotgun.  Officers located the man, Dextraze; and a search incident to arrest revealed a 20 gauge sawed-off shotgun.  Dextraze is prohibited from possessing a firearm based on his prior conviction for second degree burglary.

United States District Judge Donald C. Coggins, Jr. sentenced Dextraze to 34 months in federal prison, to be followed by a three-year term of court-ordered supervision.  There is no parole in the federal system.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Myrtle Beach Police Department.  Assistant United States Attorney Lauren Hummel prosecuted the case.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

 

#####

Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Gregory Lavon McCollum, 46, of Mullins, was sentenced to ten years in federal prison after pleading guilty to possessing with intent to distribute cocaine and distributing cocaine. 

Evidence presented to the court showed that on February 20, 2019, agents from the Marion County Combined Drug Unit used a confidential informant to make a controlled drug purchase from McCollum.  After being provided with police funds to make the purchase, the informant traveled to a location in Mullins and purchased a powder substance from McCollum.  A forensic scientist later confirmed that the substance was cocaine. 

United States District Judge Donald C. Coggins, Jr. sentenced McCollum to 120 months in federal prison, to be followed by a three-year term of court-ordered supervision.  There is no parole in the federal system.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Marion County Combined Drug Unit.  Assistant United States Attorney Lauren Hummel prosecuted the case.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

 

#####

Florence, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Michael Quantrell Barr, 30, of Myrtle Beach, was sentenced to nearly four years in federal prison after pleading guilty to possessing with intent to distribute heroin and distributing heroin. 

Evidence presented to the court showed that in June and July of 2019, the Myrtle Beach Police Department Street Crimes Unit used a confidential informant to make three controlled drug purchases from Barr.  In each purchase, an informant exchanged police funds for what a forensic scientist later confirmed to be heroin.

United States District Judge Donald C. Coggins, Jr. sentenced Barr to 46 months in federal prison, to be followed by a three-year term of court-ordered supervision.  There is no parole in the federal system.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Myrtle Beach Police Department Street Crimes Unit.  Assistant United States Attorney Lauren Hummel prosecuted the case.  

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

 

#####

Charleston, South Carolina – With Valentine’s Day just days away, United States Attorney Peter M. McCoy, Jr. warns South Carolinians to be aware of romance scam fraudsters utilizing dating apps, social media, and the internet to steal money from unsuspected victims.

“Scammers never let up on their criminal efforts, not even on Valentine’s Day,” said U.S. Attorney McCoy.  “Be aware: it is not true love if sweet-talking chatter quickly turns into requests for money.”

U.S. Attorney McCoy offers some signs to look for related to a romance scam online.

“It is likely a scam if the person you have just connected with online and have never met in person professes love quickly,” said U.S. Attorney McCoy.  “Also be wary of someone claiming to be overseas for business or military service, someone asking for money and quickly attempting to lure you off the dating site, someone who plans to visit but can’t because of an emergency, and someone claiming to need money – for emergencies, hospital bills, or travel.”

The Federal Trade Commission (FTC) reports that there were $304 million in reported loses from romance scams in 2020.  In 2019, the FTC reports over 25,000 consumers filed a report with the FTC about romance scams and reported losses of $201 million to romance scams.  Additional reports show that, over a three-year period, losses to romance scams were higher than any other scam reported to the FTC.

“The crimes involving romance scams are increasing at an alarming rate,” warns U.S. Attorney McCoy.  “From 2015 to 2020, the total amount of money lost by victims increased from $33 million to $304 million.  This clearly isn’t going away, and the public should take precautions accordingly.”

U.S. Attorney McCoy urges South Carolinians to:

- Ensure the dating site does not sell personal data to third parties or advertisers.

- Do a reverse image search of the person’s profile picture.  If it is associated with another name or with details that do not match up, it is a scam.

- Search online for the type of job the person claims to have and check to see if others have reported romance scams based on that job.  For example, search for “oil rig scammer” or “overseas military scammer.”

- Do not let scammers rush you.  Slow down and talk to someone you trust before taking any quick action on requests made by someone you have not met in person.

- Do not send intimate photos to an online acquaintance, as they could be used to extort you later.

- Never transfer money from your bank account, never buy gift cards, and never wire money to an online love interest.

- Immediately contact your bank if you think you’ve sent money to a scammer. 

- If you have become a victim, do not be too ashamed or afraid to report it.  Report your experience to the FTC by phone to 1-877-382-4357 or online at www.ftc.gov/complaint.  And report it to the Federal Bureau of Investigation’s Internet Crime Complaint Center at www.ic3.gov.

U.S. Attorney McCoy stressed his office’s commitment to stopping the criminals before more can become victims of their crimes.

“Along with law enforcement partners, the United States Attorney’s Office will work to identify, investigate, and prosecute to the fullest extent of the law those who seek to scam and steal from their neighbors,” concluded McCoy.

#####

Charleston, South Carolina – Following last month’s recognition as National Slavery and Human Trafficking Prevention Month, United States Attorney Peter McCoy is urging the public to continue raising awareness about human trafficking and support efforts to fight modern-day slavery in South Carolina.

“Ending the horrendous crime of human trafficking will take an unwavering and unified commitment of law enforcement and the public,” said U.S. Attorney McCoy.  “I call on the public to understand the signs, learn how and whom to report to, and stand firm with law enforcement to ensure justice is served for the victims of both sex trafficking and labor trafficking.”

Federal law defines sex trafficking as the recruitment, harboring, transportation, provision, obtaining, patronizing, or soliciting of a person for the purposes of a commercial sex act, in which the commercial act is induced by force, fraud, or coercion, or in which the person induced to perform such an act is under that age of 18 years old.  Federal law defines labor trafficking as the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purposes of subjection to involuntary servitude, peonage, debt bondage, or slavery.

While victims of human trafficking come from every area, age, gender, ethnicity, education, and socio-economic background – U.S. Attorney McCoy warns that traffickers seek out people who are vulnerable to the crime.

“Those with substance abuse problems, those with caregivers who have substance abuse problems, runaways, those who experienced childhood abuse or neglect, those with disabilities, those with unstable living and financial situations, and victims of domestic violence unfortunately have a higher chance of falling victim to sex and labor trafficking,” said U.S. Attorney McCoy.

U.S. Attorney McCoy asks the public to be alert for signs of potential trafficking.

“It is common for a trafficker to lure a victim in with stories that are simply too good to be true,” said U.S. Attorney McCoy.  “Look out for stories of an instant ‘everlasting love’ or a promise of an incredible job opportunity far away but lacking any specific details of the job.  Such dreams of a brighter future could quickly turn into a nightmare that is often extremely difficult to get out of.”

Should one witness these signs or have knowledge of human trafficking, U.S. Attorney McCoy implores to immediately call 911.

“If you know a victim is being trafficking or have a gut feeling that something just doesn’t add up, contact law enforcement immediately,” said U.S. Attorney McCoy.  “In addition to calling 911, I ask that you also report suspicious activity to the National Human Trafficking Hotline at 1-888-373-7888.”

U.S. Attorney McCoy encourages the public to fully educate themselves on human trafficking at the U.S. Department of Health and Human Services’ Office on Trafficking in Persons website (https://www.acf.hhs.gov/otip/about/what-human-trafficking).

“As United States Attorney for the District of South Carolina, I am unwavering in my commitment to rescue and support victims of human trafficking, while seeking the harshest punishments allowable by law for human traffickers,” said U.S. Attorney McCoy.  “And our office is committed to continue ensuring fellow law enforcement agencies have the latest and best training on the methods of investigating and prosecuting federal human trafficking cases.  But, let me be clear, the public’s support is a critical component to the success of law enforcement’s work to stop human trafficking in South Carolina.”

#####