District of South Carolina

Contact: Office of Public Affairs (202) 514-2007

WASHINGTON – Princess Cruise Lines Ltd. (Princess) has agreed to plead guilty to seven felony charges stemming from its deliberate pollution of the seas and intentional acts to cover it up.  Princess will pay a $40 million penalty– the largest-ever criminal penalty involving deliberate vessel pollution – and plead guilty to charges related to illegal dumping of oil contaminated waste from the Caribbean Princess cruise ship.  The plea agreement was announced today by Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida in Miami, Florida.

Princess, headquartered in Santa Clarita, California, is a subsidiary of Carnival Corporation (Carnival), which owns and operates multiple cruise lines and collectively comprises the world’s largest cruise company.  Carnival is headquartered in Miami.  As part of the plea agreement with Princess, cruise ships from eight Carnival cruise line companies (Carnival Cruise Line, Holland America Line N.V., Seabourn Cruise Line Ltd. and AIDA Cruises) will be under a court supervised Environmental Compliance Program (ECP) for five years.  The ECP will require independent audits by an outside entity and a court appointed monitor.

The charges to which Princess will plead guilty concern the Caribbean Princess cruise ship which visited various U.S. ports in Florida, Maine, Massachusetts, New Jersey, New York, Puerto Rico, Rhode Island, South Carolina, Texas, U.S. Virgin Islands and Virginia.  The U.S. investigation was initiated after information was provided to the U.S. Coast Guard by the British Maritime and Coastguard Agency (MCA) indicating that a newly hired engineer on the Caribbean Princess reported that a so-called “magic pipe” had been used on Aug. 23, 2013, to illegally discharge oily waste off the coast of England.  The whistleblowing engineer quit his position when the ship reached Southampton, England.  The chief engineer and senior first engineer ordered a cover-up, including removal of the magic pipe and directing subordinates to lie.  The MCA shared evidence with the U.S. Coast Guard, including before and after photos of the bypass used to make the discharge and showing its disappearance.  The U.S. Coast Guard conducted an examination of the Caribbean Princess upon its arrival in New York City, New York, on Sept. 14, 2013, during which certain crew members continued to lie in accordance with orders they had received from Princess employees. 

According to papers filed in court, the Caribbean Princess had been making illegal discharges through bypass equipment since 2005, one year after the ship began operations.  The discharge on Aug. 26, 2013, involved approximately 4,227 gallons, 23 miles off the coast of England within the country’s Exclusive Economic Zone.  At the same time as the discharge, engineers simultaneously ran clean seawater through the ship’s overboard equipment in order to create a false digital record for a legitimate discharge.

Caribbean Princess used multiple methods over the course of time to pollute the seas.  Prior to the installation of the bypass pipe used to make the discharge off the coast of England, a different unauthorized valve was used.  When the Department of Justice investigative team conducted a consensual boarding of the ship in Houston, Texas, on March 8, 2013, they found the valve that crew members had described.  When it was removed by Princess at the department’s request, it was found to contain black oil. 

In addition to the use of a magic pipe to circumvent the oily water separator and oil content monitor required pollution prevention equipment, the U.S. investigation uncovered two other illegal practices which were found to have taken place on the Caribbean Princess as well as four other Princess ships – Star Princess, Grand Princess, Coral Princess and Golden Princess.  One practice was to open a salt water valve when bilge waste was being processed by the oily water separator and oil content monitor.  The purpose was to prevent the oil content monitor from otherwise alarming and stopping the overboard discharge.  This was done routinely on the Caribbean Princess in 2012 and 2013.  The second practice involved discharges of oily bilge water originating from the overflow of graywater tanks into the machinery space bilges.  This waste was pumped back into the graywater system rather than being processed as oily bilge waste.  Neither of these practices were truthfully recorded in the oil record book as required.  All of the bypassing took place through the graywater system which was discharged when the ship was more than four nautical miles from land.  As a result, discharges within U.S. waters were likely. 

“The pollution in this case was the result of more than just bad actors on one ship,” said Assistant Attorney General Cruden.  “It reflects very poorly on Princess’s culture and management.  This is a company that knew better and should have done better.  Hopefully the outcome of this case has the potential not just to chart a new course for this company, but for other companies as well.”

“The conduct being addressed today is particularly troubling because the Carnival family of companies has a documented history of environmental violations, including in the Southern District of Florida,” said U.S. Attorney Ferrer.  “Our hope is that all companies abide by regulations that are in place to protect our natural resources and prevent environmental harm.  Today’s case should send a powerful message to other companies that the U.S. government will continue to enforce a zero tolerance policy for deliberate ocean dumping that endangers the countless animals, marine life and humans who rely on clean water to survive.”

“The safety, security and environmental stewardship of our ports, waterways and oceans is an important Coast Guard mission set and the complexity of the challenges we face today requires a global unity of effort among law enforcement partners,” said Rear Admiral Scott Buschman Commander, Coast Guard District Seven.  “I sincerely thank the U.S. Attorney and the United Kingdom Maritime and Coastguard Agency for your leadership, your collaboration and the hard work put forth to reach a plea agreement with significant penalties that serve as a clear warning to all polluters.”

“This shows just how well the U.K. and U.S. can work together on these kind of cases,” said Jeremy Smart, head of enforcement at the Maritime & Coastguard Agency of the United Kingdom.  “It also sends a clear message to the industry that this kind of pollution practice will not be tolerated anywhere in the world.  It also shows that we will always take any information we are given by those who report such practices to us very seriously and will act upon it.”

In addition to the criminal information, a plea agreement and joint factual statement were today filed in court in Miami.  Photographs of some of the evidence provided by the whistleblower and obtained by the government were also filed in federal court.  In the factual statement, Princess also admitted to the following:

• Illegal discharges took place on the Caribbean Princess dating back to 2005, one year after the vessel started operations, as part of a conspiracy to violate the Act to Prevent Pollution from Ships and to obstruct justice.
• Different bypass methods were used over the course of time, including a “magic pipe” used to transfer oily waste overboard.
• After learning that an engineer had blown the whistle, senior ship engineers dismantled the bypass pipe and instructed crew members to lie. 
• Prior to the MCA boarding, the chief engineer and senior first engineer ordered crew members to lie.  Following the MCA’s inquiry, the chief engineer held a sham meeting in the engine control room to pretend to look into the allegations while holding up a sign stating: “LA is listening.”  The engineers present understood that anything said might be heard by those at the company’s headquarters in Los Angeles, California, because the engine control room contained a recording device intended to monitor conversations in the event of an incident. 
• When using the magic pipe, engineers processed sea water through the oily water separator in order to create a digital record to account for the missing waste.
• Shore-side management failed to provide and exercise sufficient supervision and management controls to prevent or detect criminal violations by Caribbean Princess crew members.
• A perceived motive for the crimes was financial – the chief engineer that ordered the dumping off the coast of England told subordinate engineers that it cost too much to properly offload the waste in port and that the shore-side superintendent who he reported to would not want to pay the expense.
• Princess engineers on the Caribbean Princess indicated that the chief engineer responsible for the discharge on Aug. 26, 2013, was known as “broccino corto” (a person with short arms), an Italian expression for a cheap person whose arms are too short to reach his wallet. Some expressed the same opinion of the shore-side superintendent. 
• Graywater tanks overflowed into the bilges on a routine basis and were pumped back into the graywater system and then improperly discharged overboard when they were required to be treated as oil contaminated bilge waste.  The overflows took place when internal floats in the graywater collection tanks got stuck due to large amounts of fat, grease and food particles from the galley that drained into the graywater system.  Graywater tanks overflowed at least once a month and, at times, as frequently as once per week.  Princess had no written procedures or training for how internal gray water spills were supposed to be cleaned up and the problem remained uncorrected for many years.
• Princess discovered “stub pipes” along the entire length of the ship for the apparent purpose of pumping graywater overflows into the bilges back into the graywater system and subsequently overboard.

According to papers filed in court, Princess has undertaken remedial measures in response to the government’s investigation, including upgrading the oily water separators and oil content monitors on every ship in its fleet and instituting many new policies.  

If approved by the court, $10 million of the $40 million criminal penalty will be devoted to community service projects to benefit the maritime environment; $3 million of the community service payments will go to environmental projects in South Florida; $1 million will be earmarked for projects to benefit the marine environment in United Kingdom waters. 

Today’s prosecution was made possible through the combined efforts of the U.S. Coast Guard Investigative Service, the U.S. Coast Guard 7th District Legal Office, U.S. Coast Guard’s Office of Maritime and International Law and U.S. Coast Guard Office of Investigations and Analysis.  In announcing the case, Assistant Attorney General Cruden and U.S. Attorney Ferrer expressed their appreciation to the U.K.’s MCA for their cooperation and assistance.  The case was prosecuted by Richard A. Udell, Senior Litigation Counsel with the Environmental Crimes Section of the Department of Justice and Thomas Watts-FitzGerald, Deputy Chief, Economic & Environmental Crimes Section for the Southern District of Florida.

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The Justice Department filed a statement of interest late yesterday in the case of Kenny et al. v. Wilson et al. articulating the United States’ position that laws invoked to charge juveniles must include clear standards to ensure that they are enforced consistently and free from discrimination.  In the filing, the department explains that vague statues enforced arbitrarily contribute to the “school-to-prison pipeline,” the cycle of harsh school discipline that brings young people into the justice system and disproportionately affects, among others, students of color and students with disabilities.

In Kenny, a case before the U.S. District Court for the District of South Carolina, a proposed class of students and a non-profit youth services organization allege that two state laws – the disturbing schools statute and the disorderly conduct statute – are unconstitutionally vague.  As a consequence, plaintiffs assert, the laws do not provide students with notice of what conduct is criminally prohibited and they lead to arbitrary and discriminatory enforcement.

“The criminalization of everyday and ordinary childhood behavior under imprecise statutes can have disastrous and discriminatory consequences,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “Laws must provide officers with sufficient guidance to distinguish between innocent and delinquent conduct and ensure that all children receive the full protections of our Constitution.  We must remain vigilant to ensure law enforcement practices do not unnecessarily remove children from the classroom and place them in a pipeline to prison.”

In the filing, the department explains that “significant racial disparities in the enforcement of a criminal statute may indicate that the statute is unconstitutionally vague” in violation of the due process clause of the 14th Amendment.  Laws that lack clear standards and do not provide sufficient guidance to law enforcement can lead to arbitrary or discriminatory enforcement.  In Kenny, the plaintiffs allege that African-American students are nearly four times more likely to be referred for criminal “disturbing schools” charges than white students and that the disparity is even starker in certain counties.  Plaintiffs further allege that such racial disparities in the school context are not explained by differences in behavior across racial groups.

In Kenny, the plaintiffs also allege that enforcement of the two state statutes drives large numbers of young people into the juvenile and criminal justice systems, criminalizes common youthful behavior, likely results in disparities on the basis of disability and subjects students to punishment that is not proportionate to the charged misconduct.

The department’s statement of interest also provides examples from the department’s juvenile justice and law enforcement experience to illustrate the link between vague standards and unconstitutional practices.  The brief represents one of the department’s many efforts in recent years to address the school-to-prison pipeline.

Kenny et al. v. Wilson et al. was filed in August 2016.  The court will hold a hearing on all pending motions on Dec. 8, 2016. 

Kenny v. Wilson SOI

Contact Person: Jane B. Taylor (803) 929-3000

Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Bradley Lewis Felder, 27, was sentenced by United States District Court Judge Terry L. Wooten to a term of imprisonment of 144 months, or 12 years.  Felder pled guilty in June of this year to his involvement in a Conspiracy to Possess with Intent to Distribute and to Distribute a Quantity of 3,4-Methylenedioxyethylcathinone Hydrochloride (commonly known as "Molly") and 50 kilograms of more of Marijuana, a violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(C) and 846. 

At Felder’s guilty plea hearing, an attorney for the Government told Judge Wooten that, in the summer of 2013, agents from the Drug Enforcement Administration began investigating Bradley Felder who they learned was involved in the importation and distribution of both high-grade marijuana and “molly” in and around Richland and Lexington Counties.  As the investigation progressed, agents established that Felder was importing high-grade marijuana from northern California, and “molly” from an unknown source of supply in China.   Agents discovered that Felder rented various houses and apartments in and around Richland and Lexington Counties for the primary purpose of using the addresses to receive shipments of “molly.”  Felder paid friends to accept the delivery of the drug packages; sometimes he paid in cash, other times he paid with marijuana.

During the investigation that led to Felder’s arrest, agents intercepted approximately 9 packages of “molly,” each containing kilogram quantities, being shipped to South Carolina from China, and seized approximately $150,000 in cash from Felder.  On August 31, 2015, Special Agents and Task Force Officers of the Midlands HIDTA group arrested Felder, in the parking garage of the Gates of Williams Brice apartments.  Following Felder’s arrest, agents seized an additional $47,837.90 cash, a loaded .45 caliber pistol, and two watches valued at approximately $64,000.00.  Agents also seized several cell phones from Felder; one of those phones held photographs of huge amounts of money.  One picture, taken in Felder’s apartment a month prior to his arrest, showed money stacked on the kitchen counter.  The money had been heat-sealed in plastic, and stacked in large bundles.  Another photograph showed a small closet and on the shelves of the closet were large Tupperware-like containers full of cash. 

Agents confronted Felder about the money that was pictured on his phone.  On February 2, 2016, Felder led agents to a location where he had buried a large bag of money in Bowman, SC.  Agents seized the bag which contained over $1.7 million dollars. [Photograph attached.]

At sentencing, Judge Wooten ordered Felder to forfeit the money that had been seized from him; Judge Wooten’s order included a money judgment against the defendant in the amount of $11 million dollars.

The case was investigated by agents of the Midlands HIDTA Task Force, comprised of agents from South Carolina Law Enforcement Division (SLED), the Kershaw County Sheriff’s Office, the Orangeburg County Sheriff’s Office, Orangeburg Public Safety, the Columbia Police Department, the 5th Circuit Solicitor’s Office, the Richland County Sheriff’s Office and the Lexington County Sheriff’s Office, and with assistance from the United States Postal Service and Homeland Security Investigation.  Assistant United States Attorney Jane B. Taylor of the Columbia office prosecuted the case.

 

 

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Contact Person: Nancy Wicker (803) 929-3000

Charleston, South Carolina ---- Acting United States Attorney Beth Drake announced today that on November 9, 2016, Lecelle Theresa Montgomery of Bluffton, South Carolina, was charged in a 10 count Indictment with Bank Fraud (5 counts), a violation of 18 U.S.C. §1344, and Wire Fraud (5 counts), a violation of 18 U.S.C. §1343. 

The indictment alleges that beginning in or about 2008, and continuing to about 2012, Montgomery knowingly executed a scheme to commit Bank Fraud by obtaining money under the control of a financial institution by means of false and fraudulent pretenses, promises and representations. 

With regard to the 5 counts of Wire Fraud, the indictment alleges that during the same period, Montgomery, acting as a financial advisor, authorized to use a credit card belonging to an investor for incidental expenses related to the investor’s illness, devised a scheme to defraud an investor by means of false and fraudulent pretenses, promises, and representations by using the investor’s credit card to make personal purchases.

The maximum penalties that Montgomery could receive for Bank Fraud is 30 years imprisonment and a $1,000,000 fine.  The maximum penalties she could receive for Wire Fraud is 20 years imprisonment, a fine of $250,000, supervised release of not more than 3 years, and a $100 fine.

The case was investigated by the Federal Bureau of Investigation and is assigned to Assistant United States Attorney Matt Austin of the Charleston office for prosecution.

Ms. Drake stated that the charges in this Indictment are merely accusations and that the remaining defendants are presumed innocent until and unless proven guilty.

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COLUMBIA, South Carolina ---- Acting United States Attorney Beth Drake stated today that multiple individuals entered guilty pleas this week on federal gun charges while others were sentenced for firearms violations. Guilty pleas and sentencing hearings are bifurcated in the federal system and United States District Court Judge Bruce H. Hendricks presided over all of the hearings this week. 

 

These cases represent a small snapshot of “Real Time,” an ongoing local, state, and federal initiative that expedites the identification, arrest, detention, and federal prosecution of repeat offenders arrested with firearms.  The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Greenville community.

 

In addition to Greenville Police Department (GPD), the Greenville County Sheriff’s Office (GCSO), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Real Time’s core partners include the South Carolina Department of Probation, Parole, and Pardon Services, the South Carolina Highway Patrol, the Department of Homeland Security, the Federal Bureau of Investigation, the Drug Enforcement Administration, the 13th Circuit Solicitor’s Office, and the United States Attorney’s Office.

 

Greenville Police Chief Ken Miller and his department were one of the first partners on board for this initiative.  Chief Miller stated that “This multi-agency partnership endeavors to keep our communities safe and reduce firearms violence through ‘real time’ identification of dangerous individuals who seek to disrupt our streets and communities with firearms-driven violence.”

 

Acting U.S. Attorney Beth Drake commended the partnership between the state and federal agencies that led to the ATF and the U.S. Attorney’s Office prosecuting the cases federally, “We work best when we work together.  This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”

 

Since its launch in August of 2015, the initiative has resulted in the expedited federal prosecution of some 78 defendants and seizure of over 110 firearms as well as assorted ammunition from prohibited persons.

 

Sentencing Hearings: November 15, 2016

 
United States of America v. Julian Rashad Sawyer:  Julian Rashad Sawyer, age 28, of Greenville, was sentenced to 46 months in federal prison followed by a three-year term of supervised release, after previously entering a guilty plea in July to felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1).  After Sawyer’s initial arrest on state firearms charges, ATF adopted the case for federal prosecution.  Sawyer was then arrested on a federal warrant for this conduct, was detained without a bond, and will remain in federal custody until he is designated and transported to the Bureau of Prisons.

 

Evidence presented by the government during both the guilty plea hearing and the sentencing hearing established that on April 25, 2016, officers with the Mauldin Police Department conducted a traffic stop on a vehicle in which Sawyer was a passenger.  Sawyer was found to be in possession of a Smith and Wesson 9mm pistol with a loaded 9mm magazine nearby.

 

The case was investigated by the Mauldin Police Department and the ATF, and was prosecuted by Assistant United States Attorney Max Cauthen in the Greenville office.

 

United States v. James Robert Hutson:  James Robert Hutson, age 26, of Simpsonville, was sentenced to 51 months in federal prison followed by a three-year term of supervised release, after previously entering a guilty plea in July to felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1).  After Hutson’s initial arrest on state firearms charges, ATF adopted the case for federal prosecution.  Hutson was then arrested on federal warrants for this conduct, was detained without a bond, and will remain in federal custody until he is designated and transported to the Bureau of Prisons.

 

Evidence presented by the government during both the guilty plea hearing and the sentencing hearing established that on November 27, 2015, officers with the GPD conducted a traffic stop on a vehicle driven by Hutson. When Hutson exited the car, an officer observed his pocket swing as if there was something heavy in it. The officer then conducted a pat-down of Hutson’s outer clothing and recognized what he immediately knew to be loose rounds of ammunition in one of Hutson’s pockets and secured the rounds.

 

A subsequent search of the vehicle revealed a loaded Lorcin .25 caliber pistol, located between the driver’s seat and the center console. Hutson was sentenced to 51 months in federal prison followed by a three-year term of supervised release.  Investigated by the GPD and ATF, the case was prosecuted by Assistant United States Attorney Max Cauthen in the Greenville office.

 

Guilty Pleas: November 16, 2016

 
United States v. Ashley Ann Chapman: Ashley Ann Chapman, age 32, of Piedmont, South Carolina, entered a guilty plea to one count of Possession of a Firearm by a Convicted Felon, in violation of Title 18, United States Code, Section 922(g)(1).  The Government presented evidence at the guilty plea hearing that on August 26, 2016, Chapman was stopped in Pickens County for a traffic violation. During the stop, while checking her license, Chapman, who is prohibited from possessing firearms or ammunition based on her prior criminal history, informed officers that she was in possession of a pistol.  Officers then located a loaded North American Arms .22 caliber pistol in her clothing.

 

Chapman remains in custody awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by the United States Probation Office. The maximum penalty for this offense is ten-years imprisonment, followed a three-year term of supervised release, and/or a fine of $250,000.

 

The South Carolina Highway Patrol along with agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. It is assigned to Assistant United States Attorney Max Cauthen in the Greenville office.

 

United States v. Treasure Anderson:  Treasure Anderson, age 28, of Anderson, South Carolina, entered a guilty plea to one count Possession of a Firearm by a Convicted Felon, in violation of Title 18, United States Code, Section 922(g)(1).  The Government presented evidence at the guilty plea hearing that on March 8, 2016, Gaffney Police Department attempted to pull over a black mustang.  The vehicle fled from law enforcement, and a car chase ensued.  The black mustang eventually wrecked, and the occupants of the vehicle were arrested.

 

Law enforcement searched the mustang and recovered a loaded Jimenez Arms, Inc., model J.A. 22, .22 caliber pistol from the passenger seat where Anderson had been sitting.  They also recovered a quantity of methamphetamine.  When Anderson observed the officers taking the gun and drugs out of the car, she yelled that the items belonged to her.  Anderson has previously been convicted of a felony and is not permitted to carry firearms.

 

Anderson remains in custody, awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by United States Probation. The maximum penalty for this offense is ten-years imprisonment and/or a fine of $250,000.  The case was investigated by the Gaffney Police Department and ATF and is assigned to Assistant United States Attorney Jamie Schoen in the Greenville office.

United States v. Nakeo Vance: Nakeo Vance, age 41, of Greenville, South Carolina, entered a guilty plea to one count of Possession of a Firearm by a Convicted Felon and Domestic Violence Offender, in violation of Title 18, United States Code, Section 922(g)(1) and (g)(9), and two counts Possession of Counterfeit Currency, in violation of Title 18, United States Code, Section 472.

 

The Government presented evidence at the guilty plea that on May 16, 2015, GCSO conducted a traffic stop on a car in which Vance was a passenger.  Vance was wanted on outstanding warrants, and law enforcement eventually searched the car.  Officers located a wallet in the vehicle with Vance’s ID and 98 counterfeit federal reserve notes.  Vance admitted that he had received the counterfeit from a drug deal, and had already used approximately $600.00 in counterfeit to pay off drug debts.

 

A year later, Vance was again arrested, but this time, by GPD.  On May 13, 2016, GPD received a call from a hotel regarding possible drug activity and additional concerning information.  Officers arrived and observed Vance standing outside of a Chrysler, acting suspiciously.  Once Vance observed law enforcement, Vance shoved an item into a backpack he was holding and threw the backpack into the car.  Officers patted down Vance due to safety concerns and found that he was carrying a loaded Butler Associate, .22 caliber handgun.  Vance then ran from the police.

 

Officers eventually apprehended Vance and found that he was carrying more counterfeit bills.  Law enforcement searched the Chrysler and found a loaded General Precision Corporation .22 caliber revolver in the backpack Vance had been holding.  Vance has previous felony convictions and a conviction for misdemeanor domestic violence.

 

Vance remains in custody, awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by United States Probation. The maximum penalty for this offense is ten-years imprisonment and/or a fine of $250,000.  The maximum penalty for the counterfeit charges is twenty-years imprisonment and/or a fine of $250,000.
The case was investigated by the Secret Service, GPD, GCSO, and ATF and is assigned to Assistant United States Attorney Jamie Schoen in the Greenville office.

 

United States v. Norman Jefferson: Norman Jefferson, age 51, of Greenville, South Carolina, pled guilty to one count Carrying a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c) and one count Conspiracy to Distribute Crack Cocaine, in violation of Title 21, United States Code, Section 846.

 

The Government presented evidence at the guilty plea that in January and February of 2016, Jefferson sold crack cocaine on multiple occasions from his residence.  In March of 2016, GPD conducted a search of the residence, and upon entering, found Jefferson near crack cocaine and cocaine powder.  Jefferson was also carrying a loaded Ruger .380 caliber pistol at the time.  Drug distribution materials were located throughout the house.  Jefferson stated that he had the gun for protection because people who come to his house to get high are unpredictable.

 

Jefferson remains in custody, awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by United States Probation. This offense calls for a mandatory minimum sentence of five-years and a maximum penalty of life imprisonment, as well a fine of $250,000 and a term of supervised release of five-years.

 

The case was investigated by the Gaffney Police Department and ATF and is assigned to Assistant United States Attorney Jamie Schoen in the Greenville office.

 

United States of America v. Jomokayatta Walter Dennis Cook:  Jomokayatta Walter Dennis Cook, age 36, of Greenville, South Carolina, pled guilty to Possession of a Firearm by a Convicted Felon, in violation of Title 18, United States Code, Section 922(g)(1).The Government presented evidence at the guilty plea that on September 16, 2016, Cook, a security staff employee at a Greenville restaurant, possessed a loaded Sturm 9mm pistol during a verbal altercation with a fellow employee while in an employee break area at the restaurant.  Cook’s possession of the pistol was captured on surveillance video at the location. Cook has previous felony convictions that prohibit him from possessing firearms or ammunitions.

 

Cook was arrested on federal warrants that same evening and has been detained with no bond since his arrest.  Cook remains in custody on a $250,000 secured bond, awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by United States Probation. The maximum penalty for this offense is ten-years imprisonment and/or a fine of $250,000.

 

The case was investigated by GPD and ATF and is assigned to Supervisory Assistant United States Attorney Lance Crick in the Greenville office.

 

United States of America v. Xavier Javaris Dawkins:  Xavier Javaris Dawkins, age 27, of Greenville, South Carolina, pled guilty to Possession of a Firearm by a Convicted Felon, in violation of Title 18, United States Code, Section 922(g)(1).The Government presented evidence at the guilty plea that on March 27, 2016, GCSO deputies responded to a Greenville nightclub in reference to a disturbance in the parking lot.  While en route to the incident location, deputies were advised that a suspect (identified upon arrival as Dawkins), was being detained by the club’s security staff.

 

Upon arrival, club security relayed to GCSO that security had removed four individuals from the night club due to their involvement in a fight. After the individuals were removed, security observed Dawkins walk to his vehicle and remove a handgun and chamber a round in the handgun. After security commanded that Dawkins drop the weapon, Dawkins complied and placed the handgun back into the vehicle. Dawkins was detained by club security until GCSO arrived.

 

The seized handgun was loaded with fourteen rounds of ammunition.  At the time of this offense, Dawkins was on active state probation following a previous conviction for unlawful carrying of a firearm.

 

Dawkins was arrested on federal warrants and has been detained with no bond since his arrest.  Dawkins remains in custody, awaiting a sentencing hearing which will be calendared after a presentence investigation report is prepared by United States Probation. The maximum penalty for this offense is ten-years imprisonment and/or a fine of $250,000. 

 

The case was investigated by GPD and ATF and is assigned to Supervisory Assistant United States Attorney Lance Crick in the Greenville office.

 

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Contact Person: Nancy Wicker (803) 929-3000

Columbia, South Carolina--------Acting United States Attorney Beth Drake, announced today that Brandon Singleton, age 32, Frank Clemons, age 36, Tyrone Williams, age 57, Naji Osborne, age 27, Mark Delaney, age 28, and Torrion Cooper, age 35 have been indicted for their roles in a drug and gun trafficking conspiracy operating in and around Beaufort, South Carolina.  The indictment further charges that Brandon Singleton possessed firearms in furtherance of the drug trafficking.  Additionally, Brandon Singleton and Tyrone Williams are charged with being felons in possession of firearms, given their previous convictions for crimes punishable by at least a year imprisonment.  The government moved for detention of all six defendants pending trial pursuant to the Bail Reform Act.  As of the date of the indictment, this investigation has resulted in the seizure of thirteen firearms, some of which were used in furtherance of drug trafficking, and over 500 grams of cocaine. On the conspiracy charges, Singleton faces a maximum possible sentence of 40 years incarceration and the other defendants face maximum possible sentences of up to 20 years incarceration.  Defendants who are charged with being a felon in possession of firearms face a maximum possible sentence of 10 years incarceration. Defendants who are charged with using or carrying firearms in furtherance of drug trafficking activities face sentences of a minimum of 5 years incarceration up to a maximum of lifetime incarceration.

The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance and cooperation of the Beaufort County Sheriff’s Office and the 14th Circuit Solicitor’s Office in an effort to target the sale of cocaine and firearms.  Assistant United States Attorney Emily Limehouse of the Charleston office is prosecuting the case. 

The Acting United States Attorney stated that all charges in this indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.

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Contact Person: William Day (803) 929-3000

Columbia, South Carolina---- Acting United States Attorney Beth Drake stated today that Robert Eric Fockler, age 58, of Fort Mill, South Carolina was sentenced in federal court in Columbia, South Carolina, for wire fraud, a violation of 18 U.S.C. § 1343. Senior United States District Judge Cameron McGowan Curry sentenced Fockler to imprisonment for 37 months, 3 years supervised release, and ordered restitution of $263,457 be paid.

Evidence presented at the change of plea hearing established that from October 2008 to December 2013 Fockler defrauded Lexmark International, Inc.. While working at Lexmark as a customer service manager, Fockler created false invoices to make it appear the subcontractors had performed services for Lexmark. To hide the fact that Fockler was involved, he submitted the false invoices to a billing service operated by one of his friends who then submitted them to a corporation (Unigroup) that did business with Lexmark. Unigroup then submitted the invoices to Lexmark. Fockler also submitted false expense account claims to Lexmark for reimbursement by creating false hotel, restaurant, airline and other travel bills to falsely make it appear that he had incurred these expenses. Fockler’s fraudulent schemes caused Lexmark losses of more than $285,000.

The case was investigated by agents of the Federal Bureau of Investigation.  Assistant United States Attorney William E. Day II of the Columbia office prosecuted the case.

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Contact Person: Winston Holliday (803) 929-3000

Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Timothy Weldon Arthur, age 39, of Columbia, and Danielle Nicole Burroughs, age 35, of Duncan, entered guilty pleas in federal court in Columbia on Wednesday to Conspiracy, a violation of 18 U.S.C. § 1349.  United States District Judge Mary Geiger Lewis of Columbia accepted the guilty pleas and will sentence them at a later date.  Gary Lee Joiner, age 56, of Columbia, pled guilty to the same offense on September 29, 2016.

Evidence presented at the change of plea hearing established that Joiner was the Director of Orthopedic Services for Moore Orthopedic Clinic between 2006 and 2015.  In 2010, when Moore Orthopedic merged with Providence Hospital, Joiner established a fake durable medical equipment (DME) company, Creative Casting Concepts (CCC).  He then proceeded to submit false invoices to Moore and Providence, representing that CCC was providing orthopedic boots, when they were not.  Burroughs was recruited by Joiner to put her name on CCC in order to keep Moore Orthopedic from learning of Joiner’s connection.  She helped manage a bank account and post office box and received approximately $191,000 in compensation over five years.  Arthur took Joiner’s position at Moore Orthopedic in January 2015, when Joiner retired.  Arthur agreed to continue to submit fake invoices.  He received approximately $24,000 in compensation before the scheme was discovered in June 2015.  Overall, Joiner submitted $2.8 million in bogus invoices between 2011 and 2015.

Ms. Drake stated the maximum penalty for Conspiracy is imprisonment for twenty years and/or a fine of $250,000.

The case was investigated by agents of the Federal Bureau of Investigation.  Assistant United States Attorney Winston David Holliday, Jr. of the Columbia office is prosecuting the case.

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Contact Person: Winston Holliday (803) 929-3000

Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Arthur Vann, age 65, of Aiken, South Carolina, has entered a guilty plea in federal court in Columbia to Conspiracy, a violation of 18 U.S.C. § 371.  United States District Judge J. Michelle Childs, of Columbia, accepted the guilty plea and will sentence Vann at a later date.

Evidence presented at the change of plea hearing established that Vann had an interest in various offshore bank accounts and companies, primarily located in the Caribbean.  As a financial adviser, he directed a number of clients to invest in a particular fund focused on the Cayman Islands.  When money was transferred for this purpose, Vann diverted some of it into accounts he controlled and spent it for his own benefit.  When confronted by a number of investors, he sent them fake statements purporting to reflect the investments made.  The amount of loss was $1.4 million.

Ms. Drake stated the maximum penalty for Conspiracy is imprisonment for five years and/or a fine of $250,000.

The case was investigated by agents of the Federal Bureau of Investigation.  Assistant United States Attorney Winston David Holliday, Jr. of the Columbia office is prosecuting the case.

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Contact Person: Bill Day (803) 929-3000

Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Richard J. Probst, age 65, formerly of Columbia, South Carolina has entered a guilty plea in federal court in Columbia, to receiving child pornography that had traveled in foreign commerce by computer, a violation of 18 U.S.C. § 2252A.  United States District Judge Mary Geiger Lewis accepted the guilty plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that Probst had been collecting child pornography since 1986. Probst was caught when the German Federal Police reported to the U.S. Department of Homeland Security that they had discovered a Peer to Peer Network that involved trading child pornography. The investigation revealed that Probst was one of the individuals receiving child pornography from the Network.  Ms. Drake stated the maximum penalty for receiving child pornography is imprisonment for 20 years plus Supervised Release for life and/or a fine of $250,000.

The case was investigated by agents of the Department of Homeland Security and the German Federal Police Department.  Assistant United States Attorney William E Day, II of the Columbia office is prosecuting the case.

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Contact Person: David Stephens (864) 282-2100

Greenville, South Carolina ---- Acting United States Attorney Beth Drake announced today that Claus C. Foerster, age 56, formerly of Spartanburg, South Carolina, was sentenced today for multiple counts of Wire Fraud in violation of Title 18, United States Code, Section 1343.  United States District Judge Bruce H. Hendricks, sitting in Greenville, sentenced Mr. Foerster to serve twenty-four months in prison to be followed by supervised release for three years.  Additionally, Mr. Foerster was ordered to pay $3,543,829.48 in restitution to the victims.

At the guilty plea hearing on May 10, 2016, Assistant United States Attorney David C. Stephens advised the court of the following.  From 1997 through 2014 Mr. Foerster was a financial advisor employed by national investment counseling firms.  In approximately 2000 Mr. Foerster began stealing from his clients.  He advised the clients that he had located better investments than their current portfolio.  He would then tell them that to get into these investments they had to withdraw their funds from Foerster’s employers’ accounts and transfer them to Foerster’s account for further investment.  Once the funds were in Mr. Foerster’s account he diverted them to his own use.  By creating bogus account statements and on occasion returning some funds to the clients as “profits” he was able to keep the scheme going for over a decade.  By his use of this scam Foerster cheated his clients out of more than three million dollars ($3,000,000.00).

The case was investigated by the United States Secret Service and prosecuted by AUSA David Stephens of the Greenville Office. 

 

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Contact Person: Nancy Wicker (803) 929-3000

Acting United States Attorney Beth Drake stated today that a Federal Grand Jury in Columbia, South Carolina, returned Indictments against the following: Santonio Dwayne Ramsey, of Columbia, South Carolina, was charged in a 1-count indictment with escaping from a federal halfway house, a violation of Title 18, United States Code, Section 751(a). The case was investigated by the United States Marshals Service and is assigned to Assistant United States Attorney Stacey D. Haynes of the Columbia office for prosecution.

Nigel Michael Sandiford, a/k/a “Michael H. Rogers,” a/k/a “Cecil Price,”  of Columbia, South Carolina, was charged in a 1-count indictment with being a felon in possession of firearms and ammunition, a violation of Title 18, United States Code, Section 922(g)(1). The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and is assigned to Assistant United States Attorney Stacey D. Haynes of the Columbia office for prosecution.

The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
 

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Contact Person: Winston Holliday, Jr (803) 929-3000

Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Tyrone Goodrum, age 44, of Florence, has been convicted of Conspiracy, a violation of 18 U.S.C. § 371, after a two-day trial in Florence that concluded late Tuesday.  United States District Judge R. Bryan Harwell of Florence presided over the trial and will sentence Goodrum at a later date.  On September 1, 2016, Tyrone Goodrum’s wife, Roselyn, pled guilty to participating in the same conspiracy.

Evidence presented at the trial established that Roselyn Goodrum was in charge of the Farm Service Agency’s (FSA) Florence office from 2006 through 2014.  In February 2014, Ice Storm Pax caused extensive damage to farms in the Pee Dee.  As a result, farmers could make claims to the FSA for financial assistance to clean up their land.  Tyrone Goodrum conspired with his wife to file an application for payment, fraudulently representing that he was entitled to disaster benefits for a farm to which he had no connection.  As a result, $18,500 in federal money was diverted to satisfy Tyrone Goodrum’s outstanding child support debt.  Overall, Roselyn Goodrum filed multiple false applications and illegally obtained just over $146,000. 

Ms. Drake stated the maximum penalty for Conspiracy is imprisonment for 5 years and/or a fine of $250,000.

The case was investigated by agents of the United States Department of Agriculture.  Assistant United States Attorney Winston Holliday, of the Columbia office,  prosecuted the case.

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Contact Person: Public Affairs Office (202) 514-2007

WASHINGTON – The Justice Department announced today that its Civil Rights Division plans to deploy more than 500 personnel to 67 jurisdictions in 28 states for the Nov. 8, 2016, general election.

Although state and local governments have primary responsibility for administering elections, the Civil Rights Division is charged with enforcing the federal voting rights laws that protect the rights of all citizens to access the ballot on Election Day.  Since the passage of the Voting Rights Act of 1965, the department has regularly monitored elections in the field in jurisdictions around the country to protect the rights of voters.

“The bedrock of our democracy is the right to vote, and the Department of Justice works tirelessly to uphold that right not only on Election Day, but every day,” said Attorney General Loretta E. Lynch.  “We enforce federal statutes related to voting through a range of activities – including filing our own litigation when the facts warrant, submitting statements of interest in private lawsuits to help explain our understanding of these laws, and providing guidance to election officials and the general public about what these laws mean and what they require.  On Election Day itself, lawyers in the Civil Rights Division’s Voting Section will staff a hotline starting in the early hours of the morning, and just as we have sent election monitors in prior elections, we will continue to have a robust election monitors program in place on election day.  As always, our personnel will perform these duties impartially, with one goal in mind: to see to it that every eligible voter can participate in our elections to the full extent that federal law provides.  The department is deeply committed to the fair and unbiased application of our voting rights laws and we will work tirelessly to ensure that every eligible person that wants to do so is able to cast a ballot.”

Leading up to and throughout Election Day, Civil Rights Division staff members will be available by telephone to receive complaints related to possible violations of the federal voting rights laws (Toll free at 1-800-253-3931 or 202-307-2767 or TTY 202-305-0082).  In addition, individuals may also report such complaints by fax to 202-307-3961, by email to voting.section@usdoj.gov and by a complaint form on the department’s website: www.justice.gov/crt/votercomplaint.  

Allegations of election fraud are handled by the 94 U.S. Attorneys’ Offices across the country and the Criminal Division’s Public Integrity Section.  Complaints may be directed to any of the local U.S. Attorneys’ Offices, the local FBI offices or the Public Integrity Section at 202-514-1412.  A list of U.S. Attorneys’ Offices and their telephone numbers can be found at www.justice.gov/usao/find-your-united-states-attorney.  A list of FBI offices and accompanying telephone numbers can be found at www.fbi.gov/contact-us.

As always, complaints related to disruption at a polling place should always be reported immediately to local election officials (including officials in the polling place).  Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911.  They should also be reported to the department after local authorities have been contacted.

On Election Day, the Civil Rights Division will monitor the election on the ground in 67 jurisdictions for compliance with the federal voting rights laws: 

• Bethel Census Area, Alaska;
• Dillingham Census Area, Alaska;
• Kusilvak Census Area, Alaska;
• Yukon-Koyukuk Census Area, Alaska;
• Maricopa County, Arizona;
• Navajo County, Arizona;
• Alameda County, California;
• Napa County, California;
• Siskiyou County, California;
• East Hartford, Connecticut;
• Farmington, Connecticut;
• Hartford, Connecticut;
• Middletown, Connecticut;
• New Britain, Connecticut;
• Newington, Connecticut;
• West Hartford, Connecticut;
• Hillsborough County, Florida;
• Lee County, Florida;
• Miami-Dade County, Florida;
• Orange County, Florida;
• Palm Beach County, Florida;
• Fulton County, Georgia;
• Gwinnett County, Georgia;
• Hancock County, Georgia;
• Chicago, Illinois;
• Cook County, Illinois;
• Finney County, Kansas;
• Orleans Parish, Louisiana;
• Quincy, Massachusetts;
• Dearborn Heights, Michigan;
• Detroit, Michigan;
• Hamtramck, Michigan;
• St. Louis, Missouri;
• Douglas County, Nebraska;
• Mineral County, Nevada;
• Washoe County, Nevada;
• Middlesex County, New Jersey;
• Cibola County, New Mexico;
• Kings County, New York;
• Orange County, New York;
• Queens County, New York;
• Cumberland County, North Carolina;
• Forsyth County, North Carolina;
• Mecklenburg County, North Carolina;
• Robeson County, North Carolina;
• Wake County, North Carolina;
• Benson County, North Dakota;
• Rolette County, North Dakota;
• Cuyahoga County, Ohio;
• Franklin County, Ohio;
• Hamilton County, Ohio;
• Allegheny County, Pennsylvania;
• Lehigh County, Pennsylvania;
• Philadelphia County, Pennsylvania;
• Pawtucket, Rhode Island;
• Providence, Rhode Island;
• Bennett County, South Dakota;
• Jackson County, South Dakota;
• Oglala Lakota County, South Dakota;
• Shelby County, Tennessee;
• Dallas County, Texas;
• Harris County, Texas;
• Waller County, Texas;
• San Juan County, Utah;
• Fairfax County, Virginia;
• Prince William County, Virginia, and
• Milwaukee, Wisconsin.

The department will gather information on, among other things, whether voters are subject to different voting qualifications or procedures on the basis of race, color or membership in a language minority group; whether jurisdictions are complying with the minority language provisions of the Voting Rights Act; whether jurisdictions permit voters to receive assistance by a person of his or her choice if the voter is blind, has a disability or is unable to read or write; whether jurisdictions provide polling locations and voting systems allowing voters with disabilities to cast a private and independent ballot; whether jurisdictions comply with the voter registration list requirements of the National Voter Registration Act; and whether jurisdictions comply with the provisional ballot requirements of the Help America Vote Act.  To assist in these inquiries, the department has deployed personnel who speak Spanish and a variety of Asian and Native American languages.  Department personnel will also maintain contact with local election officials.

Last month, the Justice Department announced efforts to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process.  More information about the Voting Rights Act and other federal voting rights laws is available on the Civil Rights Division’s website at www.justice.gov/crt/voting-section.

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Contact Person: Nancy Wicker (803) 929-3000

Columbia, South Carolina-------Acting United States Attorney Beth Drake, announced today that fifteen individuals, including South Carolina Department of Corrections (SCDC) inmates, have been charged federally for their roles in a wide-ranging drug trafficking conspiracy operating from behind prison walls.  On September 14, 2016, a federal grand jury returned a twenty-one count sealed indictment alleging the defendants conspired to possess with intent to distribute and did distribute 50 grams or more of methamphetamine; used telephones and the U.S. Mail to facilitate a drug offense and conspired to launder drug money by conducting money transfers, cash withdrawals and purchases of and deposits onto pre-paid cash cards, all in violation of federal law. The indictment also alleges unlawful possession of a firearm and possession of a firearm in furtherance of a drug trafficking offense.

According to the indictment, five inmates capitalized on their access to cell phones to continue their criminal activities and to direct the criminal activities of nine “facilitators” outside of prison.  Using contraband cellular telephones, the U.S. Mail and employing a network of suppliers, distributers and runners outside of prison, SCDC inmates brokered and managed the delivery and distribution of methamphetamine from California to the upstate of South Carolina and elsewhere in the state. The cellular telephones were often equipped with touch screens and internet access that enabled prisoners to coordinate drug transactions, confirm shipment and delivery and transfer drug proceeds.

The individuals charged are:

Nancy Phon, 40, of Fresno, California
Sok Bun a/k/a “Friday,” 27, an inmate at McCormick Correctional Institution
Paul Ray Davis a/k/a “Pop”, 39, an inmate at Ridgeland Correctional Institution
John Marlon Acosta, 24, an inmate at Perry Correctional Institution
James Robert Peterson, 28, an inmate at Lee Correctional Institution
Heather Nicole Rudicill, 29, of Cowpens, South Carolina
Beab Keo, a/k/a/ “Ma”, 52, of Boiling Springs, South Carolina
Terri Dianne Newman, 40, of Greer, South Carolina
Sokha Kao Aun, 47, of Wellford, South Carolina
Robert Earl Floyd, 55, of Piedmont, South Carolina
David Elijah Allen, 30, an inmate at Walden Correctional Institution
Jessica Lynn Gordon, 21, an inmate of Graham Correctional Institution
Samuel Travis Wiggins, a/k/a “Flash”, 37, an inmate at Broad River Correctional Institution
Melanie Renee Wiggins, 29, of West Columbia, South Carolina
Jonathan Brent Martin, 51, of Chesnee, South Carolina

The indictment follows multi-year Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF Program is a partnership between federal, state and local law enforcement agencies. Its principal mission is to identify, disrupt and dismantle the most serious drug-trafficking organizations primarily responsible for the nation’s illegal drug supply.  The investigation was conducted by the Federal Bureau of Investigation with the assistance and cooperation of the United States Postal Service, Internal Revenue Service, Criminal Investigations, South Carolina Law Enforcement Division, South Carolina Department of Corrections, Spartanburg County Sheriff’s Office, Spartanburg City Police Department, Cherokee County Sheriff’s Office, Gaffney Police Department, Oconee County Sheriff’s Office, Union County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives, Greenville County Sheriff’s Office and Homeland Security Investigations, Immigration and Customs Enforcement, Drug Enforcement Administration and the United States Marshals Service. 

The Acting United States Attorney stated that all charges in this indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.

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Contact Person:  Nick Bianchi (843) 727-4381

Columbia, South Carolina---- Acting United States Attorney Beth Drake stated today that Anthony Jermaine Creech, age 39, of Varnville, SC, was sentenced in federal court in Charleston, South Carolina, for providing marijuana to inmates at Estill Federal Correction Institution (FCI).  United States District Judge Richard M. Gergel of Charleston sentenced Creech to six months imprisonment to be followed by six months home confinement and one year of supervised release.

          Evidence presented at the change of plea hearing established that on January 8, 2015, Creech, while working as a correctional officer at Estill F.C.I., delivered one ounce of marijuana to an inmate at the prison.  When confronted by authorities, Creech admitted to smuggling in marijuana and other contraband to inmates in exchange for money.  

          The case was investigated by agents of the Federal Bureau of Investigation and the Department of Justice Office of the Inspector General.    Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.

         

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Contact Person: Beth Drake (803) 929-3000

Columbia, South Carolina ------ Acting United States Attorney Beth Drake announced today that Assistant United States Attorneys (AUSA) Barbara M. Bowens and John Potterfield will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections.  AUSA Bowens and AUSA Potterfield have been appointed to serve as the District Election Officers (DEO) for the District of South Carolina, and in that capacity are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington. 

Acting United States Attorney Drake said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud.  The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”

 

The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.

 

Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.  Further, federal law protects the right of voters to make their own ballot or to be assisted by a person of their choice.

 

The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, Acting United States Attorney Drake stated that AUSA Bowens and AUSA Potterfield will be on duty in this District while the polls are open.  AUSA Bowens and AUSA Potterfield can be reached by the public at the following telephone numbers: (803) 929-3052 and (803) 929-3092, respectively.

 

In addition, the FBI will have special agents available in each field office and resident agency offices throughout the country to receive allegations of election fraud and other election abuses on election day.  The local FBI field office can be reached by the public at (803) 551-4200.

 

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

 

Acting United States Attorney Drake said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate.  It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”

 

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Contact Person: Matt Austin (843) 727-4381

Charleston, South Carolina –----- Acting United States Attorney Beth Drake announced today that Da-Shun Curry a/k/a “Dae Dae,” age 23, of Columbia, pleaded guilty in federal court to Conspiracy to Commit Sex Trafficking, a violation of Title 18, U. S. C. §1956(a)(1).  U.S. District Judge David Norton, Charleston, South Carolina, presided over the hearing.

Evidence presented at the change of plea hearing established that Curry transported female victims in interstate commerce to the North Charleston area for the purpose of engaging in commercial sex acts knowing or in reckless disregard of the fact that several victims were under the age of 18 and that force, fraud, or coercion would be used against all of the victims, regardless of their age, in order to compel the victims to engage in commercial sex acts. Curry admitted to his role in the conspiracy and to specifically trafficking three female victims under the age of 18.

Sentencing will be scheduled at a later date. The minimum sentence Curry could receive for Conspiracy to Commit Sex Trafficking is 15 years in prison. The maximum sentence he could receive is life in prison. 

The case was investigated by the Department of Homeland Security and City of North Charleston Police Department’s Human Trafficking Unit.  Assistant United States Attorney Matt Austin of the Charleston office is prosecuting the case.

Information regarding human trafficking should be reported to the National Human Trafficking Resource Center (NHTRC), Polaris – Freedom Happens Now, 24-hour National Hotline: 1-888-373-7888.

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Contact: Office of Public Affairs (202) 514-2007

WASHINGTON – Life Care Centers of America Inc. (Life Care) and its owner, Forrest L. Preston, have agreed to pay $145 million to resolve a government lawsuit alleging that Life Care violated the False Claims Act by knowingly causing skilled nursing facilities (SNFs) to submit false claims to Medicare and TRICARE for rehabilitation therapy services that were not reasonable, necessary or skilled, the Department of Justice announced today.  Life Care, based in Cleveland, Tennessee, owns and operates more than 220 skilled nursing facilities across the country.

“This resolution is the largest settlement with a skilled nursing facility chain in the department’s history,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “It is critically important that we protect the integrity of government health care programs by ensuring that services are provided based on clinical rather than financial considerations.”

This settlement resolves allegations that between Jan. 1, 2006 and Feb. 28, 2013, Life Care submitted false claims for rehabilitation therapy by engaging in a systematic effort to increase its Medicare and TRICARE billings.  Medicare reimburses skilled nursing facilities at a daily rate that reflects the skilled therapy and nursing needs of their qualifying patients.  The greater the skilled therapy and nursing needs of the patient, the higher the level of Medicare reimbursement.  The highest level of Medicare reimbursement for skilled nursing facilities is for “Ultra High” patients who require a minimum of 720 minutes of skilled therapy from two therapy disciplines (e.g., physical, occupational, speech), one of which has to be provided five days a week.

The United States alleged in its complaint that Life Care instituted corporate-wide policies and practices designed to place as many beneficiaries in the Ultra High reimbursement level irrespective of the clinical needs of the patients, resulting in the provision of unreasonable and unnecessary therapy to many beneficiaries.  Life Care also sought to keep patients longer than was necessary in order to continue billing for rehabilitation therapy, even after the treating therapists felt that therapy should be discontinued.  Life Care carefully tracked the minutes of therapy provided to each patient and number of days in therapy to ensure that as many patients as possible were at the highest level of reimbursement for the longest possible period.  The settlement also resolves allegations brought in a separate lawsuit by the United States that Forrest L. Preston, as the sole shareholder of Life Care, was unjustly enriched by Life Care’s fraudulent scheme.

“Billing federal healthcare programs for medically unnecessary rehabilitation services not only undermines the viability of those programs, it exploits our most vulnerable citizens,” said U.S. Attorney Nancy Stallard Harr for the Eastern District of Tennessee. “We are committed to working with our federal partners to protect both.”

“The resolution announced today demonstrates the commitment of the U.S. Attorney’s Office to aggressively pursue providers who utilize fraudulent practices to knowingly put their own financial self-interest over a duty to patients,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.  “It is imperative that providers make healthcare decisions based upon a patient’s need for services rather than a self-serving desire to maximize financial profit.  Our office will continue to investigate fraud allegations, in order to ensure that providers do not compromise the integrity of our public health care programs.”

As part of this settlement, Life Care has also entered into a five-year chain-wide Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent review organization to annually assess the medical necessity and appropriateness of therapy services billed to Medicare.

“Therapy provided in skilled nursing facilities must be medically reasonable and necessary, and we will continue to vigorously investigate companies that subject their residents to needless and unreasonable therapy,” said HHS Inspector General Daniel R. Levinson.  “The corporate integrity agreement with Life Care is designed to ensure that it only provides therapy based on the individual needs of each resident.

The settlement, which was based on the company’s ability to pay, resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by Tammie Taylor and Glenda Martin, former Life Care employees.  The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery.  The government may intervene and file its own complaint in such a lawsuit, as it has done in this case.  The whistleblower reward in this case will be $29 million.

The settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $31.6 billion through False Claims Act cases, with more than $19.2 billion of that amount recovered in cases involving fraud against federal health care programs.

This matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the Eastern District of Tennessee and the Southern District of Florida, and the HHS-OIG, with assistance from the U.S. Attorneys’ Offices for the District of Colorado, the Middle District of Florida, the Northern District of Georgia, the District of Massachusetts and the District of South Carolina and NCI/AdvanceMed, a Medicare Zone Program Integrity Contractor.

The two qui tam cases are docketed as United States ex rel. Taylor v. Life Care Centers of America, Inc., No. 1:12-cv-64 (E.D. Tenn) and United States ex rel. Martin v. Life Care Centers of America, Inc., No. 1:08-cv-251 (E.D. Tenn).  The case against Forrest L. Preston is captioned United States v. Preston, No. 1:16-cv-113 (E.D. Tenn).  The claims resolved by the settlement are allegations only; there has been no determination of liability.

 

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Contact Person: Christopher Taylor (843) 665-6688

Florence, South Carolina------Acting United States Attorney Beth Drake stated today that Jamal Antwan Lewis, 30, of Myrtle Beach, was sentenced in federal court yesterday to 262 months’ imprisonment, followed by a term of five years’ supervised release. United States District Judge R. Bryan Harwell imposed the sentence.

On May 3, 2016, Lewis was found guilty of being a Felon in Possession of a Firearm in violation of 18 U.S.C § 922(g), after a jury trial in federal court.  Evidence at the trial showed that on the evening of March 30, 2015, officers with the Myrtle Beach Police Department (MBPD) responded to a shooting call at an apartment complex located on Cedar Street in Myrtle Beach, South Carolina. Witnesses identified Lewis as having a firearm and stated that he had run into one of the apartments at the complex. MBPD officers eventually made entry into the apartment where Lewis was believed to be hiding.  Lewis and a loaded firearm were found in an upstairs bedroom. The apartment owner stated that Lewis had brought the firearm into the apartment. Lewis was prohibited from possessing a firearm due to prior convictions for aggravated domestic violence, pointing and presenting a firearm, and distribution of a controlled substance.

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

This case was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. 

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Contact Person: Beth Drake (803) 929-3000

Florence, South Carolina----On Tuesday, September 27, 2016, the South Carolina U.S. Attorney’s office joined with S.C. Department of Employment and Workforce, S.C. Vocational Rehabilitation, S.C. Probation, Pardon and Parole and the U.S. Probation office, as well as other state and federal partners, to sponsor a Re-Entry Job and Resource Fair for individuals with criminal records.  This is the first in a slate of four planned re-entry fairs intended to support South Carolinians with criminal records in their efforts to gain employment.

The Re-entry Job and Resource Fair was held at the Florence South Carolina Vocational Rehabilitation Center.  The fair featured a variety of employers from various industries, including hospitality, construction, food service, manufacturing, and staffing agencies.  The job fair also featured two workshops:  Interviewing Skills/ Resumes and the Expungement/ Pardons Process.  In addition to the job fair, multiple resource providers and local colleges presented information on their respective organizations, including continuing education and the GED program.  More than 300 job-seekers from the community attended the fair.

In addition to the job seekers making application for jobs, employers were also informed about the federal bonding program and the tax benefits associated with hiring a person with a criminal record.  The Federal Bonding program provides Fidelity Bonds for “at risk” employees, at no cost to the employer for the first six months of employment.  Additionally, employers may be eligible for the “Work Opportunity Tax Credit” of up to $2,400 for each individual they hire with a criminal record.

Acting United States Attorney Beth Drake addressed the importance of the re-entry initiative as a way to build safer communities.  “It is vital in reducing recidivism for communities to support formerly incarcerated individuals in their effort to become productive and a positive member of our communities - employment is a major step in that process.  Individuals who have a criminal record have a hard time finding employment, which in turn makes it difficult to support themselves and their families.  Employment helps ex-offenders reintegrate back into society, decreases the likelihood that an individual will commit further crime, increases community safety, and of course saves tax dollars by decreasing the prison population.”

Critical to the success of these job fairs is the vision and support of  Neal Getsinger, Commissioner SC Vocational Rehabilitation; Jerry Adger- Director SCPPP, Chief Dickie Brunson- US Probation, and Director Cheryl Stanton of S.C. Department of Employment and Workforce.   Acting U.S. Attorney Beth Drake added, “We work best when we work together. The goal here is stronger, safer communities.  The state and federal agencies that put these job fairs together did some great work which has the potential to change lives.”

Job seekers with and without a record can sign up and search for opportunities via www.scworks.org.

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Contact Person: Jamie Scoen (864) 282-2100

Columbia, South Carolina---- Acting United States Attorney Beth Drake stated today that Mark Anthony Stone, age 32, of Rabun, Georgia was sentenced today in federal court in Anderson, South Carolina, for one count of Felon in Possession of a Firearm, a violation of 18 U.S.C. § 922(g).  United States District Judge Timothy M. Cain of Anderson sentenced Stone to seventy-one months imprisonment, three years of supervised release, and a one-hundred dollar special assessment.

Evidence presented at the change of plea hearing established that on June 29, 2015, Macon County, Georgia law enforcement officers attempted to pull Stone over for speeding.  Stone fled from police, beginning a chase through Georgia, North Carolina, and South Carolina, jeopardizing the lives of members of law enforcement and the public.  Stone was eventually arrested in Oconee County, South Carolina, where he fled from officers on foot.  Inside Stone’s vehicle, officers found a loaded .22 caliber rifle with a round in the chamber.  Due to Stone’s prior convictions, including burglaries and aggravated assault, Stone was prohibited from carrying firearms at the time of his arrest.

The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Macon County, Georgia Sheriff’s Office; the Rabun County, Georgia Sheriff’s Office; Highland, North Carolina Police Department; and the Oconee County Sheriff’s Office.  Assistant United States Attorney Jamie Schoen of the Greenville office prosecuted the case.
 

This case was prosecuted as part of the joint federal, state, and local Project CeaseFire initiative, which aggressively prosecutes firearm cases.

 

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Contact Person: Beth Drake (803) 929-3000

Columbia, South Carolina --- As part of the Department of Justice’s commitment to building stronger relationships between law enforcement and the communities they serve, on Tuesday, October 4, the District of South Carolina U.S. Attorney’s Office held a day long series of round table discussions and forums. The goal of these meeting was to address the civil rights work being done through the coordinated efforts of community leaders and law enforcement and how better to meet the challenges of 21st Century policing. 

The day began with a Civil Rights Breakfast at the U.S. Attorney’s Office in Columbia with a cross section of community leaders in attendance, joined by state and federal law enforcement.  Deputy Chief Forrest Christian of the Department of Justice Civil Rights Division discussed the hate crime laws and the statutes used to prosecute excessive force cases.  Acting United States Attorney Beth Drake highlighted prosecutions in recent years by the U.S. Attorney’s Office under the hate crime and excessive force laws.  FBI Supervisory Special Agent Brian Jones described how his office works civil rights investigations, including those worked with the South Carolina Law Enforcement Division on officer-involved shootings and other use of force cases. S.C. Law Enforcement Division Chief Mark Keel addressed the state investigation and prosecution of excessive force claims.  Director Jackie Swindler of the South Carolina Criminal Justice Academy talked about how his agency trains law enforcement officers in de-escalation and some of the physical challenges to law enforcement.  The meeting was then opened to discussion where these heads of agency talked with members of the community. Representatives of the African-American business, civil and religious community, as well as representatives from the Muslim, Sikh and LGBT communities, participated in the discussions.

South Carolina Director of Public Safety Leroy Smith participated in the breakfast discussion. “I am privileged to take part in this forum that brings together state and federal law enforcement partners with our community leaders,” said SCDPS Director Leroy Smith. “As we have learned from incidents in our own state and throughout our nation, establishing trust in our communities starts with accountability and transparency.  I believe open and frequent communication are key to building trust and support in our communities before a crisis.”    

The day continued with Deputy Chief Forrest Christian, Acting U.S. Attorney Beth Drake, Criminal Chief Nancy Wicker and Supervisory Special Agent Brian Jones visiting first with Sheriff Leon Lott’s Citizen’s Advisory Committee and later City of Columbia Police Chief W.H. “Skip” Holbrook Citizen’s Advisory Committee.  The focus of these meetings was to further the discussion of the federal program for civil rights enforcement, and the value of state partnerships in working these cases.

Michael Stansbury, Acting Assistant Special Agent in Charge of the FBI’s Columbia Field Office said, “The FBI in South Carolina appreciates the opportunity provided by the United States Attorney’s Office to meet with these community groups and discuss these important issues.  While law enforcement officers, including FBI Special Agents, and other officials receive certain powers from the people so they can prevent wrongs and enforce the law, these same officers and officials must be held accountable for the way they use those powers.  Violating the public’s trust undermines the hard and sacrificial work of all law enforcement officers.  The FBI is confident this dialogue today will help to strengthen the trust communities have in law enforcement agencies throughout South Carolina.”

Acting U.S. Attorney Drake said, “The Citizens Advisory Committee meetings were terrific.  Sheriff Lott is on the front end of the move to strengthen police-community relations by talking about policing practices.  He and his command staff regularly meet with a standing committee of community members. His goal is to advance public safety through mutual trust and respect built on personal relationships between law enforcement and the people in Richland County his officers are sworn to protect.  When his officers have a problem, Sheriff Lott has a record of taking responsibility and taking action to ensure accountability. As a consequence, the community has a high level of trust in our Sheriff’s Department.”

Attorney Drake also noted, “Chief Holbrook has developed a detailed plan for implementation of the report coming out of The President’s Task Force on 21st Century Policing which is posted on the CPD website.  Such efforts grow community confidence in the police department.

www.columbiapd.net/pdfs/publications/CPD-Community-Based_Plan-Final-12-3-2015.pdf

Chief Holbrook’s work in Columbia has gained national attention. 21st Century Policing Task Force report  Clearly, Chief Holbrook is committed to and is an advocate for evolving police practices to face the challenges in the 21st Century.”

Acting U.S. Attorney Beth Drake said, “We in the USAO work closely with the DOJ Civil Rights Division and the FBI on cases that are headed to federal court.  However, our state and local partners have a critically important role in prosecuting civil rights violations, and, equally, or perhaps more importantly, in working to prevent problems before they arise.

We have a tradition of community policing here in South Carolina, a state where we still know our neighbors.  However, it is the American way to always do more and do better.  Our strength is innovation, and policing, like engineering, can be made stronger through innovation and research.  SLED Chief Keel has certainly demonstrated how we can advance public safety through data and research, whether it is the SLED FUSION Center where he can access technology to respond to an AMBER Alert, or working with newly appointed SC Criminal Justice Academy Director Jackie Swindler on de-escalation training.”

Chief Keel talked about the role of SLED in doing an investigation after an officer uses his or her firearm, “As a part of their job, police officers face danger and over the course of a career, there will be times when an officer may use force in responding to a situation. When SLED gets the call that an officer has used their firearm, we will do an investigation that is full and fair to all involved to determine whether use of the firearm was justified under the circumstances.  Plain and simple, the facts are the facts. We don’t make the facts, we discover and report them. Our agents do their work to ensure these cases get the attention they deserve.”

Director Swindler, S.C. Criminal Justice Academy, described some of the recent on-line training offered to every police and sheriff’s department in South Carolina, “Training law enforcement has always been essential and important, but no more so than in today’s current times.  At the South Carolina Criminal Justice Academy, we are constantly re-evaluating our training so that it is relevant.   In every basic law enforcement class, recruits are exposed to a great deal of training in the areas of cultural professionalism, conflict resolution, de-escalation and de-confliction.  They are not only exposed to classroom exercises but also to hands-on scenario based instruction.

In addition to the aforementioned training for recruits, recently in a partnership between the Academy and the U.S. Attorney’s Office, of the more than 12,000 Class I officers in South Carolina, more than 8,800 officers have received verbal conflict on-line training conducted by Chief Harry Dolan (Ret.).  This training was designed to provide officers with communication skills to help de-escalate potentially volatile situations without unnecessary use of force.” 

Director Swindler referenced training where the U.S. Attorney’s Office Law Enforcement Coordinating Committee joined with the S.C. Criminal Justice Academy and the S.C. Law Enforcement Officers Association to develop a web-based training to provide verbal de-escalation training.  The on-line training is an introduction for newer officers in developing practical verbal conflict management and a refresher for experienced officers on de-escalating potentially volatile encounters between law enforcement and citizens.  The de-escalation training has a dual goal of enhancing both officer and community safety by expanding the public safety professional’s tools to serve as guardians of the peace.

Acting U.S. Attorney Beth Drake closed by announcing that the U.S. Attorney’s Office has recently hired two full-time prosecutors to handle both civil and criminal civil rights allegations.  She invited the community to visit the U.S. Attorney’s Office web site to learn more about the work of the U.S. Attorney.  www.justice.gov/usao-sc .  “If you have a community event and you would like to have our office attend, there is an icon on our web page where you can click to request a speaker.”

 

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Contact Person: John Potterfield (803) 929-3000

Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Robert J. Sellers Jr., age 62, of Columbia, Marlyn Hammett, age 68 of West Columbia, and Amy Wilson, age 51 of Swansea, were sentenced yesterday in federal court in Columbia, for conspiracy to commit loan application fraud, a violation of Title 18, United States Code, Section 371.  United States District Judge Margaret B. Seymour of Columbia sentenced Sellers to 12 months and one day imprisonment, 3 years supervised release and ordered him to pay $702,314.47 in restitution to the U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA).  Hammett was sentenced to 6 months imprisonment, 3 years supervised release, and ordered to pay $702,314.47 in restitution to HUD/FHA. Wilson was sentenced to 6 months imprisonment, 3 years supervised release and ordered to pay $144,640 in restitution to HUD/FHA.

Evidence presented at their change of plea hearings established that Sellers Jr., Hammett and Wilson conspired to defraud lending institutions and HUD/FHA by falsifying documents of FHA loan applicants and fraudulently providing the FHA required 3.5% down payment funds for buyers of their properties.  The conspirators concealed the origin of the down payment funds and caused false statements on loan applications and other documents to be filed, resulting in dozens of foreclosures.

The case was investigated by agents of The U.S. Department of Housing and Urban Development, Office of Inspector General and the United States Postal Inspection Service.  Assistant United States Attorney John Potterfield of the Columbia office prosecuted the case.

 

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Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Joshua A. Martin, age 29, of Spartanburg, pled guilty yesterday in federal court in Anderson, to conspiracy to pass Treasury checks of the United States bearing falsely made or forged endorsements, a violation of Title 18, United States Code, Section 371.  United States District Judge Timothy M. Cain, of Anderson accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that Martin and co-defendant Brandy Page (who has already pled guilty) obtained Treasury checks by filing false tax returns and from other sources.  They then would create a fraudulent power of attorney form giving them authority to cash the check that falsely purported to be executed by the payee listed on the Treasury check.  Law enforcement estimates that the duo cashed over $200,000 in Treasury checks in this manner before her scheme was discovered.

Law enforcement discovered the scheme in March 2014 when the Greer Police Department received a complaint from a Georgia man that someone had stolen and cashed his Treasury check in the Greer Wal-Mart.  The driver’s license number and date of birth written on the check came back to Page.  The Internal Revenue Service assisted local authorities and uncovered the breadth of Page’s scheme.

Ms. Drake stated the maximum penalty Martin can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.

The case was investigated by agents of the Greer Police Department and the Internal Revenue Service.  Assistant United States Attorney Bill Watkins of the Greenville office handled the case.

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Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that David Paul Fuller, age 55, of Greenwood, pled guilty yesterday in federal court in Anderson, to possession of child pornography, a violation of Title 18, United States Code, Section 2252A.    United States District Judge Timothy M. Cain of Anderson accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that this case originated from the take down of a child pornography website in Switzerland.  Agents were able to identify the IP address of Fuller as active on the website.  This information and further investigation led to the execution of a search warrant on Fuller’s home.   When asked by agents if they would find child pornography on his computer, Fuller said “I hope not.”  Upon further questioning he admitted to visiting websites to view what he described as “questionable material.”  Agents seized his computers and subjected them to a forensic examination.  The examination revealed hundreds of images of children, some of which were pre-pubescent, engaging in sexually explicit conduct.

Ms. Drake stated the maximum penalty Fuller can receive is a fine of $250,000 and/or imprisonment for 20 years, plus a special assessment of $100.  He is subject to a 10-year mandatory minimum sentence because of a prior state child pornography possession conviction.

The case was investigated by agents of the Federal Bureau of Investigation.  Assistant United States Attorney Bill Watkins of the Greenville office handled the case.

This 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.
 

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Contact Person: Beth Drake (803) 929-3000

The United States is in midst of a prescription opioid and heroin epidemic that threatens our communities, families, and children.  Heroin use, and the abuse of prescription opioids, has impacted the smallest as well as largest communities in our country.  In 2014, over 27,000 lives were lost due to heroin and opioids, representing over half of the drug-related deaths reported in 2014.   Also at issue is the recent rise in deaths caused by fentanyl, which is a synthetic opioid much stronger than heroin.  Recognizing the heartbreaking impact that the prescription opioid and heroin epidemic has had on our country, the Attorney General has designated the week of September 19 as National Heroin and Opioid Awareness Week.

The number of heroin-related overdose deaths increased 244% between 2007 and 2013.  The increase in new heroin users and overdose deaths is linked to the overwhelming abuse of prescription opioids.  Acting U.S. Attorney Beth Drake commented, “When the source of supply dries up, or when the money runs out, in order to feed their addiction, our kids, our cousins and our neighbors are turning from opioid prescription medicines to the cheaper heroin. And quite literally, they are looking death in the face on that first needle or unsourced pill, because increasingly, what is on the streets and available through the internet is laced with the much stronger fentanyl, a drug used to tranquilize zoo animals.”    Prescription opioids and heroin are highly addictive and are themselves responsible for the majority of overdose deaths in this country.  Four out of five new heroin users previously abused prescription drugs, which is feeding the heroin crisis we are experiencing.  Fentanyl, a synthetic opioid that is anywhere from 25 to 50 times more potent than heroin, is here in South Carolina and is responsible for an increasing number of deaths. Fentanyl is so strong that the equivalent of a few grains of sugar can kill someone.  Given that it is stronger and more readily accessed because it is synthetic, unscrupulous drug dealers mix fentanyl with heroin or sell it as heroin.  Also, these drug dealers are using fentanyl to manufacture counterfeit tablets, pills, and capsules that mimic prescription drugs. 

The President has made clear that addressing the prescription opioid and heroin epidemic is a priority for his Administration.  The Department of Justice has responded to the growing trend in heroin and prescription opioid abuse with a three-pronged approach consisting of prevention, enforcement, and treatment.

In light of the heroin and opioid crises, the U.S. Attorney’s Office for the District of South Carolina is committed to reducing the illegal supply of these deadly drugs by working closely with our federal, state and local partners to prosecute the dealers up and down the chain of supply, be they street dealers, corrupt doctors or pharmacists, or internet operations. Because of the staggering increase in the abuse and diversion of prescription opioids, the U.S. Drug Enforcement Administration (DEA) has stood up a new enforcement group, called the Tactical Diversion Squad, specifically to investigate and remove illegal pharmaceutical traffickers in the state of South Carolina. 

The heroin and opioid health care crisis is national in scope, but it is here South Carolina.  The United States Attorney’s Office is diligently working with federal and state law enforcement colleagues in an effort to address the real dangers posed by the significant rise in heroin and prescription opioid abuse.  Below are a few illustrative examples of how heroin, prescription opioids, and fentanyl are directly impacting our state and how the United States Attorney’s Office, in a joint effort with law enforcement, is working to disrupt and dismantle the criminal organizations that are putting these opiates on our streets.  

• In 2013, the DEA’s Charleston Office began an investigation after a significant increase in heroin overdoses, including three deaths, in the Charleston tri-county area.  Edward Singleton was identified as a large-scale heroin distributor in Charleston.  The DEA conducted several controlled purchases of heroin from Singleton, and through further investigation, learned that Singleton’s major heroin source of supply was Kenneth Shannon.  The investigation ultimately culminated in the execution of a search warrant of Shannon’s residence and the seizure of over 130 grams of heroin.  As a result of the investigation, federal charges were brought against eleven individuals for their roles in a large-scale conspiracy to distribute heroin. Singleton pled guilty to multiple counts of conspiring to distribute and distributing heroin.  On July 29, 2016, following a three-day jury trial, Shannon was convicted of seven counts of unlawfully distributing heroin.  Both Singleton and Shannon are awaiting sentencing.
   
• On January 19, 2016, the United States Attorney’s Office for the District of South Carolina announced an indictment charging multiple individuals, including Dr. Mackie James Walker, Jr., a podiatrist of Aiken, South Carolina, with their roles in a conspiracy to illegally distribute oxycodone, a powerful opioid based painkiller.  The investigation began due to the large amounts of oxycodone being illegally distributed in and around Aiken.  Throughout the investigation, agents learned that Dr. Walker was selling prescriptions to addicts and drug traffickers for up to $1,000 per prescription, and that one of the individuals who received a prescription for oxycodone from Dr. Walker died of an overdose.  Evidence obtained throughout the investigation showed that Dr. Walker relied upon others to recruit dozens of individuals to come to his practice and purchase prescriptions of oxycodone.   After analyzing text messages, prescription data, and statements from Dr. Walker’s coconspirators, agents determined that, from 2013 to 2015, Dr. Walker wrote illegal prescriptions for 51,580 oxycodone pills.  In total, thirteen individuals were indicted for conspiring to illegally distribute oxycodone.  On August 17, 2016, Dr. Walker pled guilty to federal drug charges and is awaiting sentencing.   
   
• In January 2016, the DEA and FBI, in conjunction with local law enforcement agencies, began investigating the escalation of heroin distribution plaguing Myrtle Beach and surrounding areas following more than twenty heroin overdose deaths.  Initial lab results related to the deaths suggested that pure fentanyl had been substituted for, or mixed with, heroin and sold to drug addicts.  The investigation led agents to a significant drug trafficking organization that, at times, would conduct up to forty drug transactions in a five hour period.  In March 2016, federal and local law enforcement initiated various enforcement actions, including arrest and search warrants on various targets associated with the drug trafficking organization.  Agents seized pure fentanyl, heroin, multiple firearms, and approximately $80,000 in cash from storage units associated with the drug trafficking organization.  In the weeks and months following the investigation and dismantlement of the drug network operating out of the Myrtle Beach area, the number of heroin-related overdose deaths in the Myrtle Beach area significantly declined.  To increase coordination and cooperation between the United States Attorney’s Office and state prosecutors, the United States Attorney’s Office designated two state prosecutors as Special United States Attorneys.
   
• Federal prosecutors and agents currently are working with state and local law enforcement in Greenville, South Carolina following the significant rise in overdoses and deaths related to heroin and fentanyl users.  Field reports reveal that, in 2015, there were a total of forty-one heroin/fentanyl related overdose deaths in Greenville County, compared to eleven homicides. 
  The Greenville Police Department and the Greenville County Sheriff’s Office solicited the assistance of the DEA in an effort to identify and dismantle organizations associated with the distribution of heroin and fentanyl within Greenville.  In response, the DEA has opened multiple different investigations that target mid-level heroin dealers in Greenville.

   

  “In order to short-circuit the problem, we are all going to have to work together. Parents, when a physician lawfully prescribes your child an opiate after a football injury or dental surgery, supervise your child’s taking the medicine, and if there are any dosage units remaining, dispose of them at a take-back center.  Also, to all parents, youth groups and mentors, review the movie “Chasing the Dragon,” available on the DEA and FBI web sites, to see if it is age-appropriate for your children. The short film is a compelling, true-life rendition of how opiate abuse cuts across the lines of age, race, gender and wealth. Physicians, prescribe the minimum number of opiate pills appropriate in your judgment, even if it means that the patient is going to have to refill.  That bathroom medicine cabinet is in many cases the first introduction to abuse of opiates.   Pharmacists, if you suspect a prescription is fraudulent, call law enforcement.  We as ordinary Americans can make a difference.  In the meantime, you can be assured that your Federal and State officials, from the legislator to the agency administrator to the law enforcement officer, are working to tighten the noose on the illegal source of supply and provide greater treatment options for those who have succumbed to the addiction,” said Acting USA Beth Drake.

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Contact Person: Bradley Parham (843) 727-4381

Florence, South Carolina ---- Acting United States Attorney Beth Drake stated that Angela McLeod, age 44, of Dillon, South Carolina has entered a guilty plea in federal court in Florence, to bribery, a violation of 18 U.S.C. § 201(b)(2)(C).  United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.

Evidence presented at the guilty plea hearing established that from 2013 to 2015, McLeod, who was a Federal Correctional Officer at the time, accepted bribes from inmates and their associates in exchange for which she brought contraband, specifically tobacco, to inmates at the Federal Correctional Institution in Bennettsville.  Ms. Drake stated the maximum penalty for bribery is imprisonment for 15 years and/or a fine of $250,000.

The case was investigated by agents of the Office of Inspector General for the Department of Justice.  Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.

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Contact Person: Nancy Wicker (803) 929-3000

Columbia, South Carolina – The United States Attorney’s Law Enforcement Coordinating Committee hosted the annual Strom Thurmond Awards for Excellence in Law Enforcement Luncheon today at the Fort Jackson Officers' Club, Fort Jackson, South Carolina.  The awards luncheon was attended by state, local and federal law enforcement officials from across the state.

The following South Carolina law enforcement officers received the 2016 awards:

  Federal – Special Agent Jeffrey Long, Federal Bureau of Investigation State – Assistant Chief Paul M. Grant, SLED City – Chief William Wallace Oswald, Batesburg-Leesville Police Department County – Sheriff A. Lane Cribb, Georgetown County Sheriff’s Office

The Strom Thurmond Awards for Excellence in Law Enforcement were established by Senator Strom Thurmond in 1983 to recognize law enforcement officers whose performances demonstrate the highest ideals of excellence in professional law enforcement.  An annual award is given in each of four categories: (1) City Officer; (2) County Officer; (3) State Officer; and (4) Federal Officer.  An awards committee composed of representatives from the U.S. Attorney's Office, the Strom Thurmond Foundation, the Federal Bureau of Investigation, and the South Carolina Law Enforcement Division, along with a police chief and sheriff who have received the award, selected the recipients from nominations received from across the state.
Acting United States Attorney Beth Drake stated, "It is an honor to recognize these four outstanding officers.  Each of these officers exemplifies the best in law enforcement, serving their agencies, this state and our nation with distinction, integrity, and character.  Their career path from officer on the street to executive, comes at great personal sacrifice for which we the people owe a debt of gratitude.”   Federal Recipient Special Agent Jeffrey M. Long Federal Bureau of Investigation   Special Agent Jeffrey M. Long graduated from Westfield State College in 1982, with a degree in Criminal Justice. He served in the United States Marine Corps from 1983 to 1986, achieving the rank of First Lieutenant. In 1987, Special Agent Long began his law enforcement career as a police officer with the Hudson Police Department in Hudson, New Hampshire. In 1989, he joined the New Hampshire State Police as a State Trooper where he worked for eight years. While serving as a State Trooper, he was a member of the New Hampshire State Police SWAT team and a Firearms Instructor.   In 1997, Special Agent Long joined the FBI.  Upon graduating from the FBI Academy, he was assigned to the Columbia Field Office’s Myrtle Beach Residence Agency where he has spent the last 19 years as an FBI Special Agent.  He has worked various crimes including bank robberies, violent gangs, criminal enterprise investigations, child pornography, armored car heists, and high profile kidnapping cases. Special Agent Long was the lead case agent on a horrific kidnapping and murder investigation which resulted in the first two federal death penalty sentences in South Carolina history. Special Agent Long has had an enormous impact in the Myrtle Beach community and the state of South Carolina during his FBI career. He has been a leader in Myrtle Beach through his liaison with outside agencies, his guidance and direction in complex and high profile investigations, and most importantly his servant based attitude of helping others. During his distinguished career, Special Agent Long has served on the FBI SWAT team, Evidence Response Team, and as a National Academy Class Counselor during 2005.   State Recipient Assistant Chief Paul “Cricket” Grant SC Law Enforcement Division   Assistant Chief Paul “Cricket” Grant began his career with SLED on August 6, 1976, as a Field Agent. He rose through the ranks at SLED, being named Assistant Chief on October 2, 2015.  Prior to being named to his present position he was the Major of Investigative Services, where he provided direct oversight and leadership to the largest component of SLED and supervised all investigative matters handled by the agency. Prior to assuming that position, he served as Captain over the Midlands Investigative Region and as Lieutenant over the Midlands Investigative Region.  Cricket is a veteran law enforcement officer having more than 40 years of dedicated service. His interest in law enforcement and public service began at an early age, as his father was a veteran law enforcement officer who retired after serving 16 years as the Sheriff of Aiken County. Assistant Chief Grant’s educational background includes an Associate of Science degree in Criminal Justice from the University of South Carolina, a graduate of the only all SLED Agent class from the S. C. Criminal Justice Academy and a 2003 graduate of the FBI National Academy, 212th Session.   Assistant Chief Grant has mentored many law enforcement officers around the state, many of whom hold high level law enforcement administrative positions. Throughout his forty-year career, he has been involved in countless high-profile cases that, but for his investigative knowledge, an ability to forge long lasting partnerships with local law enforcement and his leadership abilities, may not have been solved.   Assistant Chief Grant is currently an active member of the South Carolina FBI National Associates, the South Carolina Law Enforcement Officers’ Association, the Association of State Criminal Investigative Agencies, Fellowship of Christian Peace Officers and the Aiken Sertoma Club. Assistant Chief Grant and his wife, Marilyn, are active members of Millbrook Baptist Church.   City Recipient Chief William Wallace Oswald Batesburg-Leesville Police Department   Chief William Wallace Oswald has served the Batesburg-Leesville community as a law enforcement officer for more than 40 years, beginning with the Batesburg Police Department in March 1976.  In May 1979, he was promoted to the position of Chief of Police, where he has remained until this day.  Having served as Chief of Police for more than 37 years, he is likely the longest serving chief in South Carolina history.   Over the years, Chief Oswald has instituted numerous programs and initiatives to improve services to the community and the safety of his officers, including the department’s first explosives response program and the department’s first Narcotics Interdiction Dog Program.  Chief Oswald’s department was the first in the central midlands to have a body-worn camera program and many departments reached out to him for his policy and recommendations.  With training at the heart of his leadership style, Chief Oswald has literally trained generations of local law enforcement officers in firearms proficiency and defensive tactics.   Chief Oswald is a graduate of the FBI National Academy, 147th Session and earned a Bachelor’s Degree in Business Administration from Limestone College in 2005.  He served in the Army National Guard from 1988 to 2011, attaining the rank of Command Sergeant Major.  His service to his country includes deployments in Iraq and Afghanistan in an ordinance disposal unit.  While on active duty, he was awarded two Bronze Stars.   Chief Oswald resides in Batesburg—Leesville with his wife and two children.
  County Recipient Sheriff A. Lane Cribb Georgetown County Sheriff’s Office   Sheriff Cribb began his career in law enforcement with the South Carolina Alcohol Beverage Commission as an Investigator in 1973.  He then worked as a Criminal Investigator with the Florence County Sheriff’s Office until he returned home to work as an Investigator with the Georgetown County Sheriff’s Office.  Sheriff Cribb is currently serving his sixth term as Sheriff of Georgetown County.   Under Sheriff Cribb’s leadership, Georgetown County’s crime clearance rates far exceed national and state levels. He has established more than thirty Neighborhood Watch programs, the successful Georgetown County Sheriff’s Re-Entry program, the Georgetown Sheriff’s Family Justice Center, the Georgetown County Sheriff’s Family Justice Center, and the G-MEN group which raises money and community awareness about domestic violence.    Sheriff Cribb attended Horry-Georgetown Technical College, Limestone College, and the University of Alabama.  He has a Bachelor’s degree in Business Administration and is also a graduate of the Carolina Command College, National Center for Rural Law Enforcement, South Carolina Criminal Justice Academy, Law Enforcement Executive Development School at the FBI Academy, and numerous other law enforcement training schools.  Sheriff Cribb resides in Pawley’s Island of Georgetown County with his wife, Craig, and they have three children.   #####

Columbia, South Carolina – Acting United States Attorney Beth Drake’s Law Enforcement Coordinating Committee, the South Carolina Law Enforcement Officers’ Association (SCLEOA), and the Strom Thurmond Foundation will host a luncheon on Friday, September 9, 2016, for the presentation of the 2016 Strom Thurmond Awards for Excellence in Law Enforcement.  These awards, established in 1983 by Senator Strom Thurmond,  are presented annually to a city, county, state, and federal law enforcement officer who have demonstrated the highest ideals of excellence in professional law enforcement.  The awards ceremony will be attended by law enforcement officers from throughout the state.

The 2016 awards luncheon will be held at the Fort Jackson Officers’ Club at Fort Jackson.  Lunch will begin at 12:00 Noon and the awards program will begin at approximately 12:30 p.m.  The names of award recipients will be announced during the luncheon. 

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Contact Person: DeWayne Pearson (803) 929-3000

Columbia, South Carolina – Acting United States Attorney Beth Drake announced today that Frederick Deon Galloway, 40, and his wife, Tawania Moneik Galloway, 41, both of Sumter, South Carolina, were indicted by a federal grand jury in a four count indictment.  Frederick Galloway was indicted for one count of tampering and removing a vehicle identification number (VIN), in violation of Title 18 United States Code, Sections 511 and 2, and one count of operating a chop shop in violation of Title 18 United States Code, Sections 2322(a)(1) and 2.  Tawania Galloway and Frederick Galloway were also indicted for one count of federal witness tampering, in violation of Title 18 United States Code, Section 1512(c)(2), and one count of making a false entry in a sworn affidavit with the intent to impede, obstruct, and influence a federal investigation, in violation of Title 18 United States Code, section 1519.  If convicted on all counts, Frederick Galloway is facing up to 5 years for removing a VIN, and up to 15 years for the chop shop violation.  Frederick Galloway and Tawania Galloway are also facing up to 20 years for the witness tampering charge and up to 20 years for providing a false sworn statement.

The investigation was conducted by the United States Postal Inspection Service, the Sumter Police Department, and the Sumter County Sheriff’s Office.  The case is being prosecuted by Assistant U.S. Attorney T. DeWayne Pearson of the U.S. Attorney’s Office in Columbia, SC.

The Acting United States Attorney stated that all charges in this indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.

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Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Erick Bradshaw, Sr., age 41, of Kentucky, pled guilty Thursday, September 1, 2016,  in federal court in Greenville, to conspiracy to defraud federal and state housing programs, a violation of Title 18, United States Code, Section 371.  United States District Judge Bruce Howe Hendricks, of Charleston accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that Fresh Start Community Development Corporation (FSCDC) was created by Bradshaw as a non-profit organization that worked on repairing homes through grants from the South Carolina State Housing Finance Development Authority (“SC Housing”) and the Federal Home Loan Bank of Atlanta (“FHLBank Atlanta”).  Bradshaw was the executive director of FSCDC.

Bradshaw sought grant monies from FHLBank Atlanta and SC Housing for the rehabilitation of low-income homes.  He forged the signature of contractors on FHLBank Atlanta Funding Certifications and SC Housing Certifications of Payment.  He also submitted certifications to FHLBank Atlanta and Draw Request for Payments to SC Housing that had inflated costs compared to the invoices of the contractors who actually performed the work.  Often some work described as completed on the certifications such as handicap ramps on front porches were never completed though it was represented in documentation that the work was complete. 

Agents interviewed Bradshaw and he admitted that FSCDC did not do what it was supposed to do. Contrary to program rules, Bradshaw negotiated with the contractors who were working on the houses for lower prices than were reported to the agencies.  For example if SC Housing funded a roof repair for $5,000 based on documents submitted by FSCDC, and Bradshaw was able to negotiate with the contractor for $3,000, then FSCDC would keep the $2,000 difference. Bradshaw did this for some of the FHLBank funded properties, too.

The loss suffered by the programs is approximately $282,000.

According to Special Agent in Charge Tim Mowery of the Federal Housing Finance Agency, Office of the Inspector General, “The Affordable Housing Program funded by the Federal Home Loan Banks is meant to help the most vulnerable in society with their housing needs.  When someone takes advantage of the program to profit for their own benefit, we will make sure they are brought to justice.”

Ms. Drake stated the maximum penalty Bradshaw can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.

The case was investigated by agents of the Internal Revenue Service, United States Postal Inspection Service, and the Inspector General’s Office of the Federal Housing Finance Agency. Assistant United States Attorney Bill Watkins handled the case. 

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Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Cary L. Wright, age 38, and Tanya A. Wright, age 29, both of Greenville, pled guilty yesterday in federal court in Greenville, to a conspiracy to commit mail theft, a violation of Title 18, United States Code, Section 371.  United States District Judge Bruce Howe Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that the defendants stole mail in and around Greenville County in an effort to obtain bank account numbers, routing numbers, and identification information.  Once in possession of this material they would create counterfeit checks and negotiate them to obtain money for methamphetamine.  On June 10, 2016, a search warrant was executed at the home of the Wrights in Greenville.  Items recovered from the residence included, but was not limited to, numerous pieces of mail belonging to others, checks stolen from the mail, financial transaction cards, blank check stock, counterfeit checks, and a computer used for check counterfeiting.   

Ms. Drake stated the maximum penalty defendants can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.

The case was investigated by agents of the Greenville City Police Department and the United States Postal Inspection Service.  Assistant United States Attorney Bill Watkins of the Greenville office handled the case.

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Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Karissa L. Miller, age 25, and Ruby A. Adams, age 54, both of Anderson, pled guilty yesterday in federal court in Greenville, to a conspiracy to commit mail theft, a violation of Title 18, United States Code, Section 371.  United States District Judge Bruce Howe Hendricks, of Charleston, accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that the defendants stole mail in and around Anderson County in an effort to obtain blank checks that are often sent to bank customers along with their statements.  Once in possession of the checks, they would open bank accounts, forge the checks, and deposit the checks into the accounts.  Defendants would withdraw money from the accounts before their fraud was discovered.   

Ms. Drake stated the maximum penalty defendants can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.

The case was investigated by agents of the Anderson Police Department and the United States Postal Inspection Service.  Assistant United States Attorney Bill Watkins of the Greenville office handled the case.

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Contact Person: Dean Secor (843) 727-4381

Columbia, South Carolina---- Acting United States Attorney Beth Drake stated today that Jose Jamie Villalpando,  a/k/a “Jamie Villapondo,” age 48, of Charleston, owner of Senor Tequila Restaurants in Charleston, was sentenced on Friday in federal court in Charleston, South Carolina, for False Statement, a violation of 18 U.S.C. § 1001(a)(1).  United States District Judge David C. Norton of Charleston sentenced Villalpando to five (5) months imprisonment, three (3) years of supervised release, and payment of a $100 special assessment. Judge Norton also ordered Villalpando to pay restitution to the U.S. Department of Labor, Wage and Hour Division in the amount of $76,575.92.

Evidence presented at the change of plea hearing established that the Wage & Hour Division (WHD) of the Department of Labor (DOL) began an investigation into whether Senor Tequila Mexican Restaurants (Senor Tequila) was paying its employees proper minimum wage and overtime pay in compliance with the Fair Labor Standards Act. The investigation found that Senor Tequila had failed to pay seven of its employees a total of approximately $106,103.05 in minimum wage and overtime pay for the period of July 28, 2008 to July 19, 2010.

Villalpando agreed to pay the back wages. However, instead of paying all of the back wages he devised and executed a scheme in 2011 in an attempt to deceive WHD investigators and avoid the payment of back wages owed to three of the employees in the amount of $76,575.92.

Villalpando executed the scheme by writing “Senor Tequila” back wages paychecks to the three employees.  Villalpando then took those employees to the bank used by Senor Tequila and helped them set up accounts (one employee already had an account at the bank).  Villalpando then had the three employees deposit the back wages paychecks into their respective bank accounts. Over the next several weeks, Villalpando had the three employees withdraw the amounts of the back wages paychecks from their accounts in increments and give the money back to him. Villalpando then mailed letters to WHD stating that he paid the three employees, and he attached copies of the cancelled back wages paychecks in an attempt to show that he had in fact paid the employees.

Acting U.S. Attorney Drake stated the maximum penalty for False Statement is imprisonment for 5 years and/or a fine of $250,000.

The case was investigated by agents of the Department of Labor-Office of Inspector General.  Assistant United States Attorney Dean H. Secor of the Charleston office prosecuted the case.

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Contact Person: Jamie Schoen (864) 282-2100

Greenville, South Carolina---- Acting United States Attorney Beth Drake stated that yesterday Mark  Betancourt, age 31, of Greenville, SC; Juan Betancourt, age 23, of Greenville, SC; and Joseph Sansosti, age 23, of Simpsonville, SC, entered guilty pleas in federal court in Greenville, to one count Hobbs Act Robbery, a violation of 18 U.S.C. § 1951(a), one count Conspiracy to Commit Hobbs Act Robbery, a violation of 18 U.S.C. § 1951(a), and one count Brandishing a Firearm in Furtherance of a Crime of Violence, a violation of 18 U.S.C. § 924(c).

Senior United States District Judge Henry M. Herlong, Jr., of Greenville accepted the guilty pleas and will impose sentence after he has reviewed the presentence reports which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that Mark Betancourt, Juan Betancourt, and Joseph Sansosti robbed Carolina Cashers on May 23, 2015.  That morning, Joseph Sansosti and Juan Betancourt pushed their way into the business.  Sansosti then grabbed an employee, placing her in a headlock, and pressed a gun to her head.  Sansosti demanded money from the employee, which the robbers placed in a bag held by Juan Betancourt. The two men then ran out of the store to the getaway car, which was driven by Mark Betancourt. 

Acting United States Attorney Drake stated the maximum penalty for Hobbs Act Robbery and Conspiracy to Commit Hobbs Act Robbery is imprisonment for 20 years and/or a fine of $250,000.00, and the maximum penalty for Brandishing a Firearm in Furtherance of a Crime of Violence is imprisonment for not less than seven (7) years consecutive to any other sentence, up to a maximum of Life.

The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greenville County Sheriff’s Office.  Assistant United States Attorney Jamie Lea Schoen of the Greenville office is prosecuting the case.
 

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Contact Person: Bill Watkins

Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Neurology Associates of Greenville, P.A.,  pled guilty and was sentenced today in federal court in Greenville, for receiving misbranded drugs in interstate commerce, a violation of Title 21, United States Code, Section 331(c).  United States Magistrate Judge Jacquelyn D. Austin of Greenville placed the practice on 3 years of federal probation.  No fine was imposed because the practice, in settlement of a parallel civil case brought by the U.S. Attorney’s Office, agreed to pay $300,000 to the United States due to the submission of Medicare claims for non-approved botulinum toxin (Botox). 

Evidence presented at the change of plea hearing established that under federal law no form of Botox may be commercially distributed for use on humans unless it has been approved by FDA. Only Allergan’s product manufactured in the United States is approved and licensed by the FDA.   Records obtained during this investigation show that the practice from 2010-2013 purchased non-FDA approved Botox from a wholesaler who purchased the Botox from a factory in Ireland. This drug is deemed misbranded under federal law as it was not FDA approved for sale in the United States. The practice received this non-FDA approved Botox in interstate commerce.

The case was investigated by agents of the Office of Inspector General of the Department of Health and Human Services. Assistant United States Attorney Bill Watkins of the Greenville office handled the criminal case and Assistant United States Attorney Jennifer Aldrich of the Columbia office handled the civil case. 

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Contact: Office of Public Affairs (202) 514-2007

Washington—A federal court in Charleston, South Carolina, has permanently barred two women from preparing federal tax returns for others, the Justice Department announced.

According to a civil complaint filed by the United States, Latasha Failey and her sister Latoya Windham prepared federal income returns in North Charleston from 2009 to 2012.  They continually and repeatedly prepared income tax returns that claimed false deductions or credits in order to understate their customers’ tax liabilities, the complaint alleged.  The defendants falsely claimed education credits; child and dependent care credits; itemized deductions on Schedule A; and dependency exemptions, according to the complaint.  In 2013, Failey and Windham each pleaded guilty to two counts of aiding and assisting in the preparation and presentation of a false income tax return and were sentenced to prison and probation, respectively, the complaint states.

The court’s order also requires Failey and Windham to give the United States a list of all of their return preparation customers since Jan. 1, 2013.

Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2016.  The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.  In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers.  Information about these cases is available on the Justice Department’s website.  An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page.  If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details. 

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DO NOT REPLY TO THIS MESSAGE.  IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.

Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Richard Elmer Sundblad, age 65, of Easley, was found guilty in federal court in Greenville, for aiding and abetting a scheme and artifice to defraud by use of the mails, a violation of 18 U.S.C. §§ 1341 and 2.  United States District Judge J. Michelle Childs, of Columbia presided over the trial and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.

Evidence presented at the trial established that Richard Sundblad’s wife Retta worked as the purchasing manager for Griffin Thermal Products (“GTP”), a Greenville County business that manufactures high-end, custom-made radiators.  Retta Sundblad has pled guilty and is awaiting sentencing.  During an internal audit in December 2014, GTP determined that beginning in or around 2012 a large number of invoices had been submitted to GTP by a business named Upstate Industrial Services, LLC (“Upstate Industrial”).  GTP discovered that Upstate Industrial had never provided any products or services and that the Upstate Industrial invoices were fictitious.  A template for Upstate Industrial invoices was found on the work computer of Retta Sundblad.  An investigation revealed that Upstate Industrial was formed by Richard Sundblad and that he deposited numerous GTP checks into a bank account that he and his wife controlled.  The stolen money enabled the Sundblads to purchase cars, a motor coach, and to generally live a lavish lifestyle.   

The loss to GTP from the scheme exceeds $800,000. 

Ms. Drake stated the maximum penalty the Sundblads can receive is a fine of $250,000 and/or imprisonment for 20 years, plus a special assessment of $100.

The case was investigated by agents of the Greenville County Sheriff’s Office and the United Postal Inspection Service.  Assistant United States Attorney Bill Watkins of the Greenville office prosecuted the case.

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Contact Person: Jeanne Howard (864) 282-2100

Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Dalvin Michael Davenport, Jr., age 23, of Greenville, South Carolina, pled guilty yesterday in federal court in Anderson, to conspiracy to commit access device fraud and money laundering, violations of Title 18, United States Code, Section 1029 and 1956.  United States District Judge Timothy M. Cain, of Anderson accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that Davenport, along with other members of the conspiracy, recruited cashiers at various businesses to credit funds onto Green Dot, Visa and other prepaid cards without receiving payment.  Immediately after obtaining the prepaid cards, members of the conspiracy activated and depleted the cards of the fraudulently loaded funds.  In total, the conspiracy resulted in a loss of over $264,000.00, to several businesses in South Carolina and Georgia. 

Other members of the conspiracy who previously entered guilty pleas and have been sentenced include the following:  Vincenzo Mikkel Byers, age 26, of Greenville, South Carolina, sentenced to 36 months imprisonment; Cierra Andreous James, age 24, of Greenville, South Carolina, sentenced to 30 months imprisonment; Brandon Christopher Davis, age 26, of Simpsonville, South Carolina, sentenced to 30 months imprisonment; Tony Christopher Robinson, age 24, of Fountain Inn, South Carolina, sentenced to 18 months imprisonment; Davario Rashad Clinkscale, age 23, of Greenville, South Carolina, sentenced to 30 months imprisonment; Eric Ross Wilson, age 26, of Greenville, South Carolina, sentenced to 30 months imprisonment; Terrance Justin Davis, age 27, of Mauldin, South Carolina, sentenced to 21 months imprisonment; Quentin Nathaniel McClinton, age 25, of Greenville, South Carolina, sentenced to time served; and, Adam Isaiah Posley, age 21, of Greenville, South Carolina, sentenced to 3 years’ probation.

The case was investigated by agents of the FBI Upstate Gang Task Force and the U. S. Treasury Department, IRS Criminal Investigation Division.  Assistant United States Attorney Jeanne Howard of the Greenville office handled the case.

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Contact Person: Nick Bianchi (843) 727-4381

Columbia, South Carolina---- Acting United States Attorney Beth Drake stated today that Tony Allen Riley, age 62, of Goose Creek, SC, was sentenced yesterday in federal court in Charleston, South Carolina, for selling a firearm to a person he knew to be under indictment for a crime punishable by imprisonment for a term exceeding one year.  Senior United States District Judge Margaret B. Seymour of Charleston sentenced Riley to twelve months and one day imprisonment, to be followed by one year of supervised release.

Evidence presented at the change of plea hearing established that in December 2013, on two separate occasions, Riley sold firearms to an individual that Riley knew to be under indictment for a crime punishable by imprisonment for a term exceeding one year.  At the time Riley sold the firearms, he was employed as a deputy with the Berkeley County Sheriff’s Office, where he had previously held the rank of lieutenant prior to his retirement in 2008 and subsequent return to the Sheriff’s Office in 2009.

Acting U.S. Attorney Beth Drake said, “Community policing is a time-honored practice here in our state.  Effective community policing is founded on both the desire of officers to protect and serve and the trust of the people the officers serve.  That trust is critical to both the safety of our officers and our communities.  For this reason, both the FBI and the U.S. Attorney’s Office, working hand-in-hand with the Department of Justice, will give top priority to prosecuting those few officers who commit abuses, dishonoring their badge and the bravery and integrity of their fellow officers.”

The case was investigated by agents of the Federal Bureau of Investigation (FBI).  Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.

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Contact Person: Nancy Wicker (803) 929-3000

Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Hannah Carroll, Rose M. Mulholland, Kim Mulholland, Caroline Sherlock, Catherine Carroll, Anthony Carroll, Johnny M. Sherlock, Mary Rita Sherlock, Jimmy Gorman, Leslie Gorman, Leslie Ann Sherlock, Jimmy J. Carroll, Mary Costello, Mary Gorman Carroll, Renee Carroll, Rose S. Mulholland, Susan Sherlock Tommy Sherlock, William Carroll, and Johnny Mack, all of North Augusta, South Carolina, and Leonard New and Angela Askew, of Augusta, Georgia; were charged in a 45 count Indictment for Racketeering (RICO) and other crimes related to their fraudulent schemes.  According to allegations in the Indictment, the defendants operated out of Murphy Village near North Augusta and committed a number of fraudulent schemes in order to obtain life insurance benefits, food stamps, Medicaid funds, and fraud involving automobile financing.

The Indictment charges all defendants with RICO Conspiracy (18 U.S.C. § 1962), other counts in the Indictment name various defendants in counts charging Mail Fraud (18 U.S.C. § 1341), Wire Fraud (18 U.S.C. § 1343), Structuring monetary transactions to evade reporting requirements (31 U.S.C. § 5324), and Interstate Transportation of Stolen Items (18 U.S.C. § 2314).

The charge of RICO Conspiracy carries a maximum sentence of 20 years and a $250,000 fine; Mail and Wire Fraud each carry a maximum sentence of 20 years and a $250,000 fine; Structuring carries a maximum sentence of 5 years and a $250,000 fine; and the charge of Interstate Transportation of Stolen Items carries a maximum sentence of 20 years and a $250,000 fine. Additionally, these charges include a maximum term of supervised release following imprisonment of 3 years.

This long-term, multi-agency investigation included the Federal Bureau of Investigation; United States Marshal’s Service; United States Department of Agriculture Office of Inspector General; the Internal Revenue Service Criminal Investigative Division; the United States Postal Inspection Service; the South Carolina Attorney General’s Office Medicaid Fraud Control Unit; the South Carolina Department of Social Services; and is assigned to Assistant United States Attorneys Jim May and Jay Richardson from the Columbia Office and Rhett Dehart from the Charleston Office for prosecution.

The Acting United States Attorney stated that all charges in this indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.

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Contact Person: Dennis Holden (202) 418-5088 & Steven Adamske (202) 418-5080

In a Parallel Criminal Action, Robert Leben Was Sentenced to 40 Months in Prison

Washington, DC - The U.S. Commodity Futures Trading Commission (CFTC) today announced that Chief Judge Terry L. Wooten of the U.S. District Court for the District of South Carolina entered a summary judgment Order against Defendants Robert S. Leben and Amy L. Leben of Columbia, South Carolina, in a CFTC enforcement action charging the Lebens with misappropriating pool participant funds and failing to register as commodity pool operators (see CFTC Press Release 6881-14).  In addition, the CFTC Complaint charged Robert Leben with issuing false statements and fraudulently soliciting pool participants by guaranteeing returns and the safety of each pool participant’s principal investment.  The Complaint also charged Amy Leben with improperly accepting and commingling pool participant funds.

The Court’s Order requires the Lebens to pay restitution to victims in the amount of $2,551,596, disgorgement in the amount of $109,787, and a civil monetary penalty in the amount of $7,654,788.  The Order further imposes permanent trading and registration bans and prohibits the Lebens from violating the anti-fraud and registration provisions of the Commodity Exchange Act and CFTC Regulations, as charged.

The CFTC’s Complaint had alleged that between August 2008 and March 12, 2014, the Lebens, by and through the commodity pool Structured Finance Group Corporation (SFG), fraudulently solicited and accepted at least $3.2 million from at least 12 members of the general public to trade commodity futures contracts through a pool; that the Lebens traded only a portion of the pool participant funds in futures accounts in the name of Amy Leben, as well as in the name of the pool; and that they sustained net losses for the majority of the period.  The Court’s Order finds that the Lebens misappropriated at least $2 million of the pool participant investor funds for their personal use, while representing to investors that the money would be used by SFG to purchase U.S. Treasury debt obligations and commodities.  According to the Court Order, the Lebens used the misappropriated funds to purchase a house, vacations, a pool, an irrigation system, a car, cosmetic surgery, as well as to provide funds to family members and to pay everyday living expenses.

The CFTC cautions that Orders requiring repayment of funds to victims may not result in the recovery of any money lost because the wrongdoers may not have sufficient funds or assets.  The CFTC will continue to fight vigorously for the protection of customers and to ensure the wrongdoers are held accountable.

Robert Leben Indicted on Criminal Charges, Ordered to Pay Restitution to Victims, and Sentenced to Prison

On December 16, 2014, Robert Leben was indicted on criminal charges arising from the same fraudulent conduct that was the subject of the CFTC’s action (see United States v. Robert S. Leben, No. 3:14-cr-858 (D.S.C.)).  On October 8, 2015, Robert Leben pled guilty and on April 14, 2016, was sentenced to 40 months in prison and ordered to pay restitution to victims of the fraud.

The CFTC appreciates the cooperation of the South Carolina Attorney General’s Office and the Office of the U.S. Attorney for the District of South Carolina in this matter.

The CFTC Division of Enforcement staff members responsible for this case are Amanda Burks, Michael Loconte, Erica Bodin, Elizabeth Davis, and Rick Glaser.

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CFTC’s Commodity Pool Fraud Advisory

The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including the Commodity Pool Fraud Advisory, which warns customers about a type of fraud that involves individuals and firms, often unregistered, offering investments in commodity pools.

Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online. 

Contact Person: Nancy Wicker (803) 929-3000

Greenville, South Carolina --- Myron Anvil McCall is charged in a twenty-seven count Indictment with making and presenting claims for false tax refunds, a violation of Title 18, United States Code, Section 287. 

Beth Drake, Acting U.S. Attorney for the District of South Carolina, made the announcement after the Defendant was indicted.

The maximum penalty McCall could receive if convicted is five years imprisonment.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

The Defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

The case was investigated by agents of the Internal Revenue Service, and is assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.

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Contact Person: Jamie Lea Schoen (864) 282-2100

Greenville, South Carolina ---- Acting United States Attorney Beth Drake stated today that Takenya Gallman Rookard, a/k/a “Takenya Natori Gallman,” age 34, of Greenville, South Carolina has entered a guilty plea in federal court in Anderson, South Carolina to Theft of Government Funds, a violation of 18 U.S.C. § 641.  United States District Judge Timothy M. Cain of Anderson accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that Takenya Rookard lied to an Administrative Law Judge when seeking Social Security disability benefits.  Ms. Rookard failed to disclose her work as a co-owner of Comfort Care Providers, LLC, both while seeking and later receiving benefits. 

Acting United States Attorney Drake stated the maximum penalty for Theft of Government Funds is imprisonment for 10 years and/or a fine of $250,000.

The case was investigated by agents of the Social Security Office of Inspector General.  Assistant United States Attorney Jamie Lea Schoen of the Greenville office is prosecuting the case.

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Contact Person: Jamie Lea Schoen (864) 282-2100

Columbia, South Carolina---- Acting United States Attorney Beth Drake stated today that Timothy Howard, age 51, of Greer, South Carolina was sentenced yesterday in federal court in Anderson, South Carolina, for Violating Pretreatment Standards of the Clean Water Act, in violation of 33 U.S.C. § 1317 and 1319.   United States District Judge Timothy M. Cain of Anderson sentenced Howard to 18 months imprisonment, a $10,000.00 fine, and 1 year of supervised release.

Evidence presented at the change of plea hearing established that April 2, 2011, and June 18, 2013, Howard illegally dumped waste at unauthorized locations connected to the Renewable Water Resources (ReWa) and Town of Lyman Sewage Systems, respectively.  Evidence presented at the sentencing hearing also established that during the course of the investigation, Howard made false statements to local law enforcement and submitted hauling log records to DHEC which omitted over 85% of his septage handling activities, thereby obstructing the investigation. 

"Intentional acts by rogue septic haulers pose serious risks to the health of our community and environment.  Those who operate within this industry must adhere to the regulations and laws for which they are permitted," said Andy Castro, Assistant Special Agent in Charge of EPA’s criminal enforcement program in Atlanta, Georgia.  “EPA and its law enforcement partners are committed to the protection of public health and will continue to pursue those who blatantly undermine those efforts.”  Acting United States Attorney Beth Drake stated, "The United States Attorney's Office prioritizes environmental cases in an effort to protect our citizens and natural resources and deter future wrongdoers.  Environmental crimes have a serious cost for our society, especially in cases such as this where public facilities bear the brunt of the harm.  I ask that you report any violations to the EPA at (800)241-1754 or http://www2.epa.gov/enforcement/report-environmental-violations."

The case was investigated by agents of the Environmental Protection Agency, South Carolina Department of Health and Environmental Control, Greenville County Sheriff’s Office, Lyman Police Department, and Duncan Police Department.  Assistant United States Attorney Jamie Lea Schoen of the Greenville office prosecuted the case.

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Contact: (202) 598-9457

WASHINGTON – The Office of Justice Programs’ (OJP) Office for Civil Rights (OCR) today entered into an agreement with the Richland County Sheriff’s Department (RCSD) to resolve a compliance review of its School Resource Officer (SRO) program. The agreement was reached in order for RCSD to promptly enact changes to ensure full compliance with federal civil rights laws prohibiting discrimination against students based on race, color, national origin and disability.     

The agreement requires RCSD to undertake a comprehensive assessment and overhaul of its SRO program, including:

• Developing policies to minimize school-based arrests and meet the needs of students with disabilities;

• Providing intensive, annual training for all SROs on de-escalation, bias-free policing, and youth development;

• Conducting detailed data collection and analysis; and

• Establishing a community working group to recommend program improvements.

The OJP Diagnostic Center, a technical assistance resource that uses data-driven approaches to help communities address criminal justice and public safety issues, will support RCSD in implementing the terms of the agreement.      

“The Office for Civil Rights is committed to working with communities like Richland County to ensure that students’ civil rights are protected and school-based law enforcement responses are safe and fair,” said OJP Assistant Attorney General Karol V. Mason. “By working with our Diagnostic Center to examine their data and identify the appropriate evidence-based practices, we hope these communities can enhance the services school resource officers provide and strengthen their relationships with students and families.”

OCR is responsible for ensuring recipients of federal financial assistance from OJP and the Department of Justice’s Office of Community Oriented Policing Services, such as RCSD, comply with applicable federal civil rights laws. Specifically, OCR’s SRO Compliance Review Initiative seeks to diminish the disproportionate impact school-based law enforcement actions have on students of color and students with disabilities by evaluating whether federally-funded SRO programs comply with these laws. OCR selected the RCSD SRO program for review in May 2015 based on several factors, including data collected by the Justice Department and other federal agencies on the county’s juvenile population and arrest rates, school-based arrests, and school-based referrals to law enforcement.       

A link to the resolution agreement along with OCR’s resolution letter can be found at www.ojp.usdoj.gov/about/ocr/pdfs/RCSD-SRO-ComplianceReview-08102016.pdf.   

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Contact Person: Nancy Wicker (803) 929-3000

Acting United States Attorney Beth Drake stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:

Greenville Man Indicated on Threatening to Bomb Social Security Administration Building
Ronnie Vaughn, age 69, of Greenville, South Carolina, was charged in a 1-count indictment.  Ronnie Vaughn was charged with Willfully Making a Threat – Explosive Materials, in violation of Title 18, United States Code, Section 844(e), which carries a maximum penalty of 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Federal Protective Service and is assigned to Assistant United States Attorney D. Josev Brewer of the Greenville office for prosecution.

Georgia Man Indicated on Aggravated Identity Theft in Connection with the Use of Mail and the Filing of Federal Tax Returns
Cristobal Guevara Castelan, age 30, of Palmetto, Georgia was charged in a 4-count indictment.  Cristobal Guevara Castelan was charged with Fraud in Connection with Identification Information, in violation of Title 18, United States Code, Section 1028, which carries a maximum penalty of 15 years imprisonment and a maximum fine of $250,000; Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A, which carries a 2-year term of imprisonment consecutive to any other term of imprisonment imposed and a maximum fine of $250,000; and 2 counts of Mail Fraud, in violation of Title 18, United States Code, Section 1341, which carry a maximum penalty of 20 years imprisonment and a maximum fine of $250,000.  The case was investigated by agents of the Internal Revenue Service and is assigned to Assistant United States Attorney D. Josev Brewer, of the Greenville office for prosecution.

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

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Contact Person: Stacey Haynes (803) 929-3000

Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Robert Da’Quan Johnson, a/k/a “Thunda,” age 20, of Rock Hill, South Carolina plead guilty today in federal court. Johnson plead guilty to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). United States District Judge Mary Geiger Lewis of Columbia accepted the plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.

Evidence presented in court established that on the evening of September 7, 2015, an officer with the Rock Hill Police Department was on routine patrol when he observed two vehicles traveling down Mount Holly Road at a high rate of speed. The officer’s radar clocked the vehicles traveling 70 mph in a 50 mph zone. Upon activating his blue light and siren and stopping both vehicles, the officer found Johnson to be the driver and sole occupant of one vehicle and a female friend of Johnson’s was found to be the driver and sole occupant of the other vehicle. After asking Johnson to exit his vehicle, a Rohm .22 caliber firearm was found in Johnson’s pants pocket and a baggy of .22 caliber ammunition found in Johnson’s vehicle. Johnson was placed under arrest for state charges for carrying an unlawful weapon and speeding. The case was referred to federal authorities for prosecution as Johnson, who was on state parole at the time, is prohibited under federal law from possessing firearms and/or ammunition based upon his 2014 state felony conviction for criminal conspiracy.

Johnson faces a statutory maximum of ten (10) years imprisonment and/or a fine of $250,000 on the firearm/ammunition charge.

The case was investigated by the Rock Hill Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases.  Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.

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Contact Person: Sean Kittrell (843) 727-4381

Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that  Kenneth Kennedy Shannon, 51 years old, from Vance, South Carolina, who was a defendant charged in a conspiracy involving more than a kilogram of heroin, has been convicted after a trial in federal court in Charleston. Acting United States Attorney Drake noted that the indictment was the result of the work of the Charleston Drug Enforcement Task Force, which is comprised of federal agents and task force officers from local Charleston area agencies.  She said that there is an effort underway to address heroin trafficking in the Charleston community.  Ms. Drake advised that Assistant United States Attorney Sean Kittrell and Assistant United States Attorney Matt Austin of the Charleston office coordinated the investigation and prosecuted the case. 

Evidence presented during the trial showed that the investigation began after a series of overdoses affected the Charleston community.  Over time, Shannon was identified as a major source of supply effort.  Assistant United States Matt Austin said that Shannon was intercepted on a wiretap and investigators learned that he was bringing a load of heroin down by train from New York on February 27, 2014.  He got off the train in Kingstree, South Carolina, and went to his stash house in Vance, South Carolina.  The next day, Shannon, essentially a wholesaler, drove to meet with one of his retail distributors.  The DEA Task Force, working with the North Charleston Police Department, made a traffic stop on the in which he was riding Tahoe.  Shannon, the passenger, was being driven by a close relative who had his 8 month old grandchild in a car seat in the back of the SUV.  After the driver got out of the vehicle to speak with police, Shannon jumped over the console into the driver’s seat.  He took off and led police on a high speed chase.  That chase was called off as soon as police realized that there was a child in the car.  While Shannon was fleeing from police, a citizen saw the driver of the Chevrolet Tahoe throw a baseball sized bag out of the window near Tony Way and flagged down an alert North Charleston police officer involved in the chase.  Assistant United States Sean Kittrell said that although the bag was run over by another vehicle, the officer was able to recover approximately two (2) grams of heroin (or enough for about 67 bags or doses of heroin, according to Kittrell).  Shannon also threw another package out on the ramp at Montague Avenue which was later recovered by DEA agents.  The box held 500 bags containing, altogether, 9 grams of heroin (or enough for about 300 bags or doses of heroin, according to Kittrell).  The bags were light blue.  Testimony revealed that this was a marketing tool and that the blue heroin was regarded as a great product. 

The task force learned where Shannon was and arrested him in the Tahoe later that same afternoon.  It had residue powder on the driver’s side door.  Agents concluded that the residue came from throwing the baseball sized bag of heroin out of the SUV.   Because the baby was not in the car, the task force immediately began to attempt to ascertain the child’s location.  Once they learned the baby was safe, agents executed a search warrant for Shannon’s stash house in Vance, South Carolina.  Inside, agents recovered approximately 130 grams of heroin (enough for about 4,334 bags or doses of heroin, according to Kittrell), a Krupp’s coffee grinder with heroin residue along with two metal strainers, a digital scale, and a glass pestle (all used to chop up compressed blocks of heroin ); twelve small cardboard brown boxes, each holding about 600 unused individual "bindle" bags (all packaging for individual drug sales); a green grocery bag with many more "bindle" bags; two digital scales; a traffic citation issued to Kenneth Kennedy Shannon; and seven bars of Mannite "Cicogna" which is used as a cutting agent by heroin traffickers to increase the weight of drugs to create more product. 

Testimony during the trial established that Shannon was the head of a distribution chain which distributed an excess of a kilogram of heroin from 2012 till his arrest on February 28, 2012.  That is the equivalent of over 33,000 bags or doses of heroin, with a street value of well over $600,000.00 according to Kittrell.  Under federal sentencing laws, he faces a sentence of life in federal prison without parole.  Kittrell said that there was an unusually dramatic moment during the trial, when Shannon jumped up and started screaming at the court and the jury.  He had to be subdued by deputy United States Marshals and removed from the courtroom.

Chief Greg Mullen of the City of Charleston Police Department said that the partnership between the federal agencies and local police, which led to the conviction, is truly effective.  “This trial is an example of how law enforcement teamwork can effectively combat the sources of supply of heroin which have been plaguing our community.  Here, the City of Charleston Police Department, the North Charleston Police Department, the Federal Drug Enforcement Administration, all of us, worked closely together to identify, investigate and prosecute a major heroin dealer.  Heroin is on the rise, and it needs to come off of the street.  It is reaching all aspects of community, in all our neighborhoods.  Only by working together with strong inter-agency partnerships will we be able to fight this.  Shannon faces a life sentence, and sentences like that greatly impact dealers who decide whether to stay in business."

Jason Sandoval, Resident Agent in Charge of the local DEA office commented, “The Charleston community is not immune to the heroin problem devastating communities across the country. Shannon's secretive, insular, and evasive methods enabled him to remain a significant heroin source of supply for far too long. The guilty verdict against Shannon on all counts sent a clear message that enough is enough. The successful conclusion of this investigation was made possible by the unyielding efforts of a law enforcement coalition of local agencies, DEA, and the US Attorney’s Office dedicated to protecting our community. This success speaks to the effectiveness we can realize when we work together as a coalition of concerned citizens, police, and prosecutors. The DEA task force is dedicated to being a full partner of local and federal agencies, citizen advocacy groups, and all others who wish to stem the scourge of heroin in our community.”

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