District of South Carolina

Contact Person: Chuvalo J. Truesdell (404) 893-7124

COLUMBIA, SC. - The Drug Enforcement Administration’s (DEA) South Carolina District Office is partnering with national, state, local, and tribal law enforcement officials, as well as community coalition groups, to hold its 11th state-wide Prescription Drug Take-Back Day on Saturday, April 30, 2016 from 10 a.m. to 2 p.m. local time.  This one-day event will make it convenient for the public to rid their homes of potentially dangerous prescription drugs. At the event, South Carolinians will be able to drop off their expired, unused, and unwanted pills at sites across the state free of charge, no questions asked.  By doing so, they will help prevent prescription drug abuse and theft. South Carolinians participating in DEA’s last take-back, held on September 26, 2015, yielded 5,230 pounds of unwanted or expired medications for safe and proper disposal at sites set up throughout the state.

The National Prescription Drug Take-Back Day addresses vital public safety and health issues. Many Americans are not aware that medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs.

Surveys of opioid drug users show that the majority of them get their drugs free from friends and family, including from the home medicine cabinet.  This is a unique opportunity for Americans to make their homes and medicine cabinets safe from theft and abuse.

Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division said, “Drug overdoses are the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms. The Prescription Drug Take-Back program will allow Americans to properly and safely dispose of their prescription medication which could otherwise be abused for non-medical purposes. This event is free and anonymous. Simply turn in your unused, unwanted, unneeded medication, no questions asked. This is just one example of how DEA is working hand-in-hand with its law enforcement and community partners in an effort to stem the tide of prescription drug abuse.”  

The DEA encourages parents, along with their children, to educate themselves about the dangers of legal and illegal drugs by visiting DEA’s interactive websites at www.justhinktwice.com, www.GetSmartAboutDrugs.com and www.dea.gov.

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Contact Person: William K. Witherspoon (803) 929-3000

Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Mitchell Narada Kelly, a/k/a "Duncey", age 36, of Lancaster County, South Carolina was sentenced yesterday in federal court in Columbia, South Carolina, for possession with the intent to distribute and distribution of a quantity of cocaine, a violation of 18 U.S.C. §§ 841(a)(1), 841(b)(1)(C) and 851.  United States District Judge Mary Geiger Lewis of Columbia sentenced Kelly to 188 months (15 years and 8 months) in prison, followed by 6 years of supervised release and a special assessment of $100.

Evidence presented at the change of plea hearing established that members of the Lancaster County Sheriff’s Department Narcotics Unit, FBI and ATF developed informants that agreed to make a controlled purchase of cocaine from Kelly.  The officers sent the individuals to Kelly’s residence where they purchased cocaine from Kelly on April 9, 2015, June 3, 2015 and June 24, 2015.  The cocaine purchased in each controlled buy weighed between one and three ounces. Based upon these controlled buys, the officers obtained a search warrant to search Kelly’s house where they found digital scales, a small amount of cocaine, various types of ammunition and a .40 caliber Ruger model SR40C pistol. During his guilty plea hearing, Kelly admitted to having five (5) prior felony drug convictions before these purchases.

The case was investigated by agents of the Federal Bureau of Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives and Lancaster County Sheriff's Department.  Assistant United States Attorney William K. Witherspoon of the Columbia, South Carolina office prosecuted the case.

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

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

Columbia, South Carolina---- United States Attorney Bill Nettles stated that ROBERT STUART LEBEN, age 53, of Columbia, South Carolina, was sentenced today in federal court in Columbia, South Carolina, for Conspiracy to Commit Wire Fraud, a violation of 18 U.S.C. § 371, in connection with an investor fraud scheme.  United States District Judge Mary Geiger Lewis of Columbia sentenced Leben to 40 months of incarceration.  Leben also was ordered to pay over $1.8 million in restitution to the individual victims.   

Evidence presented at the change of plea hearing established that between 2008 and 2015, Leben controlled the Structured Finance Group (SFG), which purportedly invested in United States Treasury fixed-income securities called “T-STRIPS” on behalf of his clients.  Leben developed a plan to buy discounted T-STRIPS and use the difference between the discounted price and the face value to generate income by trading in commodities.  Leben used two third party intermediaries between himself and those giving him money to be invested.  Records obtained by the FBI show correspondence from Leben to investors confirming the amount handed over and falsely representing to those individuals that they had active balances in their accounts.  However, rather than buy T-STRIPS, Leben diverted the bulk of investor money for his own use, including purchasing a $500,000 house, a backyard pool and landscaping worth $180,000, vacations, surgical procedures, and various financial gifts to his family members.  The investigation revealed eleven victims who lost approximately $2.3 million, some of which has been recouped. 

The case was investigated by the Federal Bureau of Investigation, with assistance from the South Carolina Attorney General’s Office.  Assistant United States Attorneys Winston Holliday and Jim May of the Columbia office prosecuted the case.

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Contact Person: Beth Drake (803) 929-3000

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

Seven Individuals Indicted for Conspiring to Alter Checks
Cornelius N.  Mattress, age 42, of Pendleton, South Carolina; Karissa L. Miller, age 24, of Anderson, South Carolina; Sherry D. Lyons, age 43, of Abbeville, South Carolina; Erica R. Floyd, age 24, of Abbeville, South Carolina; Rosalynn D. Crawford, age 35, of Abbeville, South Carolina; Ruby A.  Adams, age 53, of Anderson, South Carolina; and Stacy S. Paul, age 40, of Anderson, South Carolina were charged in a 1-count indictment with conspiracy, a violation of Title 18, United States Code, Section 371.  The maximum penalty each defendant could receive is 5 years imprisonment and a maximum fine of $250,000.  The case was investigated by agents of the United States Postal Inspection Service and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.

Greenville Resident Indicted on Child Pornography
Richard Wallace Heald, III, age 25, of Greenville, South Carolina, was charged in a 2-count indictment.  Richard Wallace Heald, III, was charged with Possession of Child Pornography, a violation of Title 18, United States Code, Section 2252A(a)(5)(B) and Receiving or Distribution of Child Pornography, a violation of Title 18, United States Code, Section 2252(a)(2).  The maximum penalty Heald could receive is 20 years imprisonment and a maximum fine of $250,000.  The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) agents and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.  This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys 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.

Greenwood Man Indicted for Delay of Mail by a Postal Employee
Stephen J. Ritchie, Jr., age 32, of Greenwood, South Carolina, was charged in a single-count Indictment with delay of mail by a postal employee, a violation of Title 18, United States Code, Section 1703.  The maximum penalty Ritchie could receive is five years imprisonment and a fine of $250,000.00.  The case was investigated by agents of the United States Postal Service, Office of Inspector General, and is assigned to Assistant United States Attorney David C. Stephens of the Greenville 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: Beth Drake (803) 929-3000

United States Attorney Bill Nettles stated today that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following:

Charleston-based NOAA Employee Charged with Possession of Child Pornography involving Prepubescent Minors
Clayton A. Norfleet, age 53, of West Columbia, was charged in a one-count Indictment with Possession of Child Pornography involving Prepubescent Minors, in violation of Title 18, United States Code, Sections 2252A(a)(5)(B) and 2252A(b)(2). Norfleet could receive a maximum sentence of 20 years imprisonment and a $250,000 fine. The case was investigated by agents of the Department of Commerce-Office of Inspector General (DOC-OIG) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.

North Charleston Felon Indicted for Illegally Reentering the United States
Fidel Ramos Sanchez, age 39, of North Charleston, was charged in a one-count Indictment with Illegal Reentry of an Alien after being removed subsequent to a conviction for an aggravated felony, in violation of Title 8, United States Code, Sections 1326(a) and 1326(b)(2). The maximum penalty Sanchez could receive is 20 years imprisonment and a $250,000 fine. The case was investigated by U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ICE-ERO) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.

North Charleston Man Charged with Distribution of Child Pornography and Possession of Child Pornography involving Prepubescent Minors
Derek Wayne Sanson, age 26, of North Charleston, was charged in a two-count Indictment with Distribution of Child Pornography, in violation of  Title 18, United States Code, Sections 2252A(a)(2) and 2252A(b)(1), and Possession of Child Pornography involving Prepubescent Minors, in violation of Title 18, United States Code, Sections 2252A(a)(5)(B) and 2252A(b)(2). Sanson could receive a mandatory minimum sentence of 5 years imprisonment and a maximum of 20 years imprisonment and a $250,000 fine for the Distribution of Child Pornography count, and a maximum sentence of 20 years imprisonment and a $250,000 fine for the Possession of Child Pornography involving Prepubescent Minors count. The case was investigated by agents of the Federal Bureau of Investigation (FBI) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston 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: Eric Klumb (843) 727-4381

Columbia, South Carolina---- United States Attorney Bill Nettles announced that Hamer resident Cristopher Rakel German, age 25, was sentenced to a two-and-a-half years in prison for assaulting a mail carrier with intent to rob in violation of 18 U.S.C. §2114(a).  The sentence was imposed on April 5th by United States District Court Judge R. Bryan Harwell sitting in Florence.  On August 16, 2013, German had stopped a mail carrier after the carrier had attempted to deliver a package addressed to a fictitious name at the home of German’s relative.  After the carrier refused to give the package to German, he shoved her and grabbed it.  The package contained an unknown quantity of marijuana.

The case was investigated by Inspectors of the U.S. Postal Inspection Service.  Assistant United States Attorney Eric Klumb prosecuted the case.

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Contact Person: Beth Drake (803) 929-3000

United States Attorney Bill Nettles stated today that a Federal Grand Jury in Columbia, South Carolina, returned an Indictment against the following:

Rock Hill man charged with being a felon in possession of a firearm
Robert Da’Quan Johnson, age 20, of Rock Hill, South Carolina was charged in a one-count indictment stemming from an incident in Rock Hill on March 4, 2016. Johnson was charged with being a felon in possession of a firearm and ammunition, a violation of Title 18, U.S.C. ''922(g)(1), 924(a)(2), and 924(e). The maximum penalty Johnson could receive on the charge is 10 years imprisonment  and a maximum fine of $250,000, unless he is determined to be an armed career criminal, and then he would face a mandatory minimum 15 years with a maximum of life imprisonment and a maximum fine of $250,000. Johnson was previously arrested for this charge pursuant to a federal criminal complaint on March 8, 2016. The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Rock Hill Police Department 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 this Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.

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Contact Person: Dean Secor (843) 727-4381

Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Steven F. Weiss, age 67, of Virginia Beach, Virginia was sentenced on Wednesday in federal court in Charleston, South Carolina for Conspiracy to Commit Mail Fraud, Wire Fraud, and Bank Fraud, a violation of 18 U.S.C. § 371.  U.S. District Judge Richard M. Gergel sentenced Weiss to 30 months in federal prison. Judge Gergel also ordered Weiss to serve three years of supervised release after he is released from prison (the first twelve months under electronic monitoring) and to pay restitution in the amount of $4,961,732.

Evidence presented at Weiss’ change of plea hearing established that he participated in a mortgage fraud conspiracy that utilized real estate and mortgage businesses operated in Summerville, South Carolina under the names North American Mortgage Group, LLC; Realty Executives of Coastal Carolina; and New Freedom Enterprises, LLC. 

The scheme involved more than 70 properties, approximately $45 million of mortgage loans, and a loss of more than $23 million suffered by financial institutions. The properties were located in Charleston, Johns Island, Ladson, Mount Pleasant, Summerville, Edisto Island, St. Helena Island, Garden City, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Lake Keowee, and Tybee Island, Georgia. 

Weiss worked as a loan officer for North American Mortgage Group, LLC. He was directly involved with at least 13 of the properties involved in the scheme, and the losses associated with those 13 properties totaled $4,961,732.

Two defendants previously pleaded guilty in connection with the scheme and are awaiting sentencing. Scott M. Wickersham, 36, of Summerville, pleaded guilty to one count of Conspiracy to Commit Mail Fraud, Wire Fraud, and Bank Fraud, in violation of Title 18, United States Code, Section 1349, and two counts of Willfully Making and Subscribing a False Tax Return, in violation of Title 26, United States Code, Section 7206(1). Kelly Martin, 34, of Moncks Corner pleaded guilty to one count of Conspiracy to Commit Mail Fraud, Wire Fraud, and Bank Fraud, in violation of Title 18, United States Code, Section 371.

Two other defendants were indicted in December in connection with the scheme and their cases are pending.

The case was investigated by agents of the Federal Bureau of Investigation (FBI) and the Internal Revenue Service-Criminal Investigation (IRS-CI).  Assistant United States Attorney Dean H. Secor of the Charleston office prosecuted the case.

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Contact Person: Jim May (803) 929-3000

Columbia, South Carolina---- United States Attorney Bill Nettles stated that Jefford Henry, Jeffrey Henry, Linda Marie Henry, Makeshia Glover and Bobby McGuire, were sentenced today in federal court in Columbia, South Carolina, for conspiracy to commit wire, mail and bank fraud, a violation of 18 U.S.C. § 1349, wire fraud, a violation of 18 U.S.C. § 1343, mail fraud, a violation of 18 U.S.C. § 1341, and money laundering, a violation of 18 U.S.C. § 1956.  United States District Judge Mary Geiger Lewis of Columbia sentenced Jefford Henry to 108 months, Jeffrey Henry to 121 months, Linda Marie Henry to 87 months, Makeshia Glover to 87 months and Bobby McGuire to 46 months.

          Evidence presented at the trial established that the defendants are members of the sovereign citizen group, the Moorish Nation.  The defendants stole approximate 2 million dollars from the IRS and attempted to steal over 12 million dollars by submitting fraudulent tax returns.  Evidence established that once the money was deposited, the defendants shared in the proceeds, buying automobiles and property.  The defendants claimed that their belief structure allowed them to steal from the IRS - an argument that the Government refuted and the jury rejected.  Because the defendants have continued to file frivolous and nonsensical demands with the court, they were taken into custody immediately after the sentence was pronounced.

          The case was investigated by agents of the FBI and IRS CID.  Assistant United States Attorneys Jim May and DeWayne Pearson of the Columbia office prosecuted the case.   

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Contact Person: Stacey D. Haynes (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Anthony Leroy Doctor, a/k/a “Amp,” age 26, of Columbia, South Carolina plead guilty today in federal court. Doctor plead guilty to being in possession of a stolen firearm and ammunition, in violation of Title 18, United States Code, Sections 922(j) 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 shortly before midnight on June 7, 2015, Doctor and others became involved in a disturbance in the parking lot outside a nightclub located in a strip mall at Broad River Road and Rushmore Road in Columbia. Doctor was armed with a firearm and when confronted by club security, Doctor left the premises and discarded the firearm in some bushes along a parking lot behind a restaurant across from the club. Later, Doctor returned to the bushes and attempted to retrieve the firearm, but was asked to leave the premises by the restaurant security. Doctor continued to return to search the bushes and while Doctor was looking for the firearm in the bushes, a deputy with the Richland County Sheriff’s Department arrived in response to the restaurant’s call about a suspicious person in their parking lot. When asked what he was doing, Doctor, without turning around, replied that he was looking for his gun. Doctor then turned around and noticed that the security guard had been joined by the Richland County deputy. Doctor, who was intoxicated, was placed in investigative detention while deputies searched for the firearm. Deputies called a K-9 to the scene. The K-9 performed an article search and retrieved the firearm from the bushes where Doctor had been searching earlier. Doctor, an admitted gang member, was placed under arrest for state weapon charge and disorderly conduct. The firearm, a Taurus 9mm handgun was loaded with one round of 9mm ammunition, and had previously been stolen in the fall of 2014 from a vehicle in Aiken. The case was referred to federal authorities for prosecution as Doctor, who was on state probation at the time, is prohibited under federal law from possessing firearms and/or ammunition based upon his prior state felony convictions, which include carjacking, assault and battery with intent to kill, strong arm robbery, and possession of a firearm by a person convicted of a violent crime.   

          Doctor faces a maximum of 10 years imprisonment and/or a fine of $250,000 on the stolen firearm/ammunition charge. Doctor stipulated and agreed to imposition of the maximum 10 years imprisonment sentence as part of his federal plea agreement.

          The case was investigated by the Richland County Sheriff’s 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: Jim May (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that HW Group LLC,  a Lexington County Farming Operation, has entered a guilty plea to a pattern and practice of employing illegal aliens, a violation of Title 8,  United States Code § 1324a, and was sentenced to a one million dollar fine and 4 years of intensive supervision.  Senior United States District Judge Joseph F. Anderson, Jr. of Columbia presided over the hearing.

Evidence presented at the hearing established that HW Group is one of several related entities that participate in major farming operations in Lexington County and is better known by a related entity, WP Rawl and Sons.  An investigation found that the farm had a pattern and practice of employing illegal aliens in their agriculture business.  This employment of illegal aliens was both directly by the farm and by the various subcontractors used.  An analysis of company records showed that employees had documentation which was often outdated, counterfeit, or improper. Moreover, some of the subcontractors that were used by the farm had little or no documentation for the workers performing services on HW Group’s land.  In total, the investigation found that the farm employed between 300-350 illegal aliens in its farming operations.

The Government and the corporate defendant entered into a plea agreement, whereby the corporation agreed to a one million dollar fine and four years of intensive supervision by the United States Probation Office and the Department of Homeland Security. 

The United States Attorney Bill Nettles stated, "This plea and sentencing should serve as a notice to businesses that this District is focused on the demand side enforcement of immigration laws.  The law applies to businesses as it does to the individuals.”

The case was investigated by agents of the Homeland Security Investigations.  Assistant United States Attorneys Jim May and Jay Richardson of the Columbia office prosecuted the case.

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Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Brandy D. Page, age 38, of Spartanburg, pled guilty today 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 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 Page obtained Treasury checks by filing false tax returns and from other sources.  She then would create a fraudulent power of attorney form giving her authority to cash the check that falsely purported to be executed by the payee listed on the Treasury check.  Law enforcement estimates that Page 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.

Mr. Nettles stated the maximum penalty Page 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: Public Affairs (202) 514-2007

WASHINGTON – Respironics Inc., based in Murrysville, Pennsylvania, has agreed to pay $34.8 million to resolve alleged False Claims Act violations for paying kickbacks in the form of free call center services to durable medical equipment (DME) suppliers that bought its masks for patients with sleep apnea, the Department of Justice announced today.   

“The payment of illegal remuneration in any form to induce patient referrals threatens public confidence in the health care system,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “Americans deserve to know that when they are prescribed a device to treat a serious health care problem, the supplier’s judgment has not been compromised by illegal payments from equipment manufacturers.”

The Anti-Kickback Statute prohibits the knowing and willful payment of any remuneration to induce the referral of services or items that are paid for by a federal healthcare program, such as Medicare, Medicaid or TRICARE.  Claims submitted to these programs in violation of the Anti-Kickback Statute are also false claims under the False Claims Act.

The United States alleged that Respironics violated the Anti-Kickback Statute and the False Claims Act by providing free services to DME suppliers to induce them to purchase Respironics masks that treat sleep apnea.  Respironics allegedly provided DME companies with call center services to meet their patients’ resupply needs at no charge as long as the patients were using masks that Respironics manufactured; otherwise, the DME companies would have to pay a monthly fee based on the number of patients who used masks manufactured by a competitor of Respironics.  The government alleged that the conduct began in April 2012 and continued until November 2015.

“This office has made a substantial commitment to combating fraud,” said U.S. Attorney Bill Nettles of the District of South Carolina. “Our commitment has made this district one of the leaders on behalf of whistleblowers.  We hope that those who commit fraud will recognize that it is our goal to make the consequences more than just the cost of doing business.” 

Respironics will pay roughly $34.14 million to the federal government and roughly $660,000 to various state governments based on their participation in the Medicaid program. 

The settlement resolves a lawsuit originally brought by Dr. Gibran Ameer, who has worked for different DME companies, under the qui tam provisions of the False Claims Act.  The Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery.   Under the civil settlement announced today, Dr. Ameer will receive $5.38 million out of the federal share of the recovery.

“Medical equipment manufacturers that boost profits by providing kickbacks to suppliers will be held accountable for their improper conduct,” said Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services, Office of Inspector General (HHS-OIG).  “We will continue to investigate such business arrangements, which threaten the integrity of federal health care programs.”

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by 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 $27.4 billion through False Claims Act cases, with more than $17.4 billion of that amount recovered in cases involving fraud against federal health care programs.

This settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office of the District of South Carolina, and HHS Office of Counsel to the Inspector General and Office of Investigations and the National Association of Medicaid Fraud Control Units.  

The lawsuit is captioned United States et al. ex rel. Dr. Gibran Ameer v. Philips Electronics North America, et al., Case No. 2:14-cv-2077-PMD (D.S.C.).  The claims resolved by the settlement are allegations only, and there has been no determination of liability. 

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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: Beth Drake (803) 929-3000

COLUMBIA, SOUTH CAROLINA – United States Attorney Bill Nettles stated that United States District Judge Joseph F. Anderson will hold a hearing in the case of United States v. HW Group, Case No. 3:16-po-2.

WHEN: Thursday, March 24, 2016, at 2 pm WHERE: Matthew J. Perry, Jr., Courthouse
901 Richland Street, Courtroom V
Columbia, SC 29201

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Contact Person: Dean H. Secor (843) 727-4381

Columbia, South Carolina---- United States Attorney Bill Nettles stated today that David Christman Berg, Jr., age 55, of Hilton Head Island, South Carolina was sentenced on Tuesday in federal court in Charleston, South Carolina for Possession of Child Pornography, a violation of 18 U.S.C. § 2252A(a)(5)(B).  Senior U.S. District Judge Margaret B. Seymour sentenced Berg to 108 months in federal prison. Judge Seymour also ordered Berg to serve a lifetime term of supervised release after he is released from prison.

Evidence presented at the change of plea hearing last June established that in April 2012 an undercover FBI agent was browsing a website known to be used by child pornographers. The agent determined that Berg had posted child pornography images on the website. A search warrant was executed at Berg’s residence in Hilton Head Island on May 14, 2012.  Agents seized computers and thumb drives from Berg that contained approximately 14,000 child pornography images and 41 child pornography videos, including child pornography involving prepubescent minors and sadistic and masochistic conduct. Berg was interviewed and admitted that he possessed child pornography.

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

This case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Justice Department in May 2006 to combat the growing epidemic of child exploitation and abuse.  Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Shannon D. Ashworth, age 33, Wendy D, Sisk, age 45, and Danny Buford, age 47, all of Anderson, were sentenced today in federal court in Anderson, for conspiracy to commit fraud, a violation of Title 18, United States Code, Section 371.  United States District Judge Timothy M. Cain of Anderson sentenced Ashworth to 60 months imprisonment, Sisk to 24 months imprisonment, and Buford to 18 months imprisonment.  Collectively, they were ordered to pay over $40,000 in restitution, and placed on three years of supervised release. 

Evidence presented at the change of plea hearing established that the United States Postal Inspection Service, the Anderson County Sheriff’s Office, the Anderson City Police Department, and other local agencies had undertaken a long-term investigation into the theft of mail in and around Anderson County.  It was discovered that an organization existed that regularly stole mail from residential boxes, sorted the stolen mail for checks and personal identifying information, created, altered or counterfeited checks, and created false identification documents.  Multiple counterfeited and altered checks were passed throughout the upstate.  Most of the fraud was conducted in an effort to obtain funds to purchase methamphetamine.

Sisk was a leader of an organization of more than 20 individuals.  She served as a clearing house for stolen mail and aided other co-conspirators in creating and cashing counterfeit checks.  Ashworth stole mail and cashed multiple counterfeit checks throughout the upstate.  He also made counterfeit identification documents.  Danny Buford stole mail and also cashed checks for the conspiracy.   

The case was investigated by agents of United States Postal Inspection Service, the Anderson County Sheriff’s Office, the Anderson City Police Department, and other local law enforcement agencies.  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 ---- United States Attorney Bill Nettles stated today that Charles B. Harris, age 48, of Ninety-Six, South Carolina, was sentenced in federal court in Anderson, for conspiracy to defraud the United States. United States District Judge Timothy M. Cain of Anderson sentenced Harris to 20 months imprisonment and ordered him to pay over $45,000 in restitution.

Evidence presented at the change of plea hearing established that from 2011-2014, Harris owned and operated the Greenwood Barber College.  The school was approved by the VA to teach veterans the skill of barbering.  Harris was the certifying official who agreed to accurately monitor and report student attendance and academic progress.

In December 2013, the Department of Veterans Affairs received a complaint that Harris was conspiring with various veterans in stealing Government funds.  Agents opened an investigation and interviewed several of Harris’ students.  The students told agents that so long as they paid Harris $400 per month, he did not require them to attend class.   Harris would falsify documents indicating their attendance and progress so the students could continue to receive VA educational benefits.

On February 6, 2014, agents interviewed Harris at the Greenwood Barber College.  Harris admitted to helping veterans sign up for the Veteran Retraining Assistance Program (“VRAP”) and other VA programs offering financial aid for career training.  He would then enroll them in the Greenwood Barber College.  Harris admitted that he would not require the veterans (whether VRAP or another program) to actually attend classes at the Greenwood Barber College and that he would falsify records documenting the attendance and performance of the veterans.  So long as the veterans paid Harris $400 per month, he kept them enrolled in the school.  Harris said that he knew what he did was wrong and was he was sorry. 

The case was investigated by agents of the Department of Veterans Affairs, Office of the Inspector General.  Assistant United States Attorney Bill Watkins of the Greenville office handled the case.

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Contact Person: Stacey Haynes (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Wade Andrew Albright, age 43, of Columbia, South Carolina was sentenced to 188 months (15.8 years) imprisonment today in federal court. In November 2015, Albright plead guilty to being a felon in possession of a firearm and ammunition, a violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e). Senior United States District Court Judge Margaret B. Seymour determined that Albright was an armed career criminal, subject to enhanced penalties.  The imposed term of imprisonment will be followed by 3 years of supervised release.

Evidence presented at the earlier change of plea hearing established that on the early morning hours of November 29, 2013, officers with the Lexington County Narcotics Enforcement Team (“NET”) set up surveillance in order to arrest Albright on outstanding state warrants for distribution of cocaine and crack cocaine. Officers observed Albright drive into the employee parking lot for the plant where he was employed at the time. As officers approached his truck, Albright got back into the truck and fled. Officers observed Albright drive into a neighborhood. Shortly thereafter, officers observed Albright’s truck in the parking lot of an apartment complex in the area, the driver’s door was open and the truck was still running. Other officers then observed Albright along a wood line. After a brief chase, Albright was arrested. A search incident to arrest revealed numerous pill bottles containing individually bagged pills, cocaine, and marijuana both on Albright’s person and in a book bag he discarded while running. Officers also located a located Smith & Wesson .38 caliber revolver and additional rounds of ammunition on Albright. A check of the firearm revealed that it had previously been reported stolen in Richland County.

Albright is prohibited under federal law from possessing firearms and/or ammunition based upon his prior state convictions for burglary 2nd degree (3 separate convictions, each involving a firearm), strong arm robbery (3 separate convictions, each involving a firearm), escape, grand larceny (two separate counts), assault and battery of a high and aggravated nature stemming from an incident in a detention center, assault and battery of high and aggravated nature stemming from an incident in the South Carolina Department of Corrections), and manslaughter (stemming from the stabbing of another inmate in the South Carolina Department of Corrections). Albright is subject to enhanced penalties under 18 U.S.C. ' 924(e) in light of his prior convictions in state court for violent felonies.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Lexington County Narcotics Enforcement Team 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: Rhett DeHart (843) 727-4381

Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Vance White, age 49, was sentenced in federal court in Charleston, South Carolina, for Wire Fraud, a violation of 18 U.S.C. § 1343.  Senior United States District Judge Weston Houck sentenced White to 36 months imprisonment and 3 years supervised release.  The Court also ordered White to pay $629,000 in restitution to the victims.

Evidence presented at his guilty plea hearing established that Vance White was a mortgage originator in Charleston County, S.C.  From May 2010 through March 2015, White devised a scheme to defraud investors.  It was part of the scheme to defraud that White falsely represented to investors that he had clients who were attempting to purchase residential properties but who could not qualify for traditional bank loans.  White persuaded numerous investors to loan money to these clients.  The terms of these fictitious loans were a ten percent annual interest rate with the loans being repaid in full in three years.  White falsely represented to the investors that each of these loans was secured by mortgages on residential properties, and he fabricated the loan documentation for each loan to make it appear that the loans were secured by residential properties with sufficient equity. 

In reality, the loans promoted by White were completely fictitious.  There were no borrowers for the loans, nor any collateral to secure the loans.  Instead of providing the loan proceeds to actual borrowers, White stole the loan proceeds for his personal use, and he used a small portion of the loan proceeds to make the fraudulent interest payments to the investors in order to prolong the fraud.  During the course of the scheme to defraud, White fraudulently obtained more than $800,000 from ten investors for approximately twenty fictitious loans as described above.    

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

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Contact Person: Nick Bianchi (843) 727-4381

Charleston, South Carolina ---- United States Attorney Bill Nettles stated today that Anthony Jermaine Creech, of Blackville, South Carolina, has entered a guilty plea in federal court in Charleston, to providing marijuana to inmates at Estill FCI, a violation of 18 U.S.C. § 1791.  United States Magistrate Judge Mary Gordon Baker of Charleston accepted the guilty plea.  Sentence will be imposed after a district judge 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 on January 8, 2015, Creech, while working as a prison guard at Estill FCI, 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, and resigned his position at the prison.    Estill FCI is a medium security federal prison in Estill, South Carolina. 

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

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 is prosecuting the case.

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Contact Person: JD Rowell (803) 929-3000

Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Bryant Christopher Ford of Mableton, Georgia was sentenced today in federal court in Columbia, South Carolina, after having pled guilty to conspiracy to possess with intent to distribute cocaine in violation of federal law.  Chief United States District Judge Terry L. Wooten of Columbia sentenced Ford to 100 months incarceration, followed by 3 years supervised release. As part of the sentence, Judge Wooten also ordered that Ford is required to forfeit over $300,000.00 in cash and other assets he purchased or used during the drug trafficking conspiracy.

Evidence presented at the change of plea hearing established that the FBI conducted surveillance on Ford and Harold McFadden from April through June of 2015.  On June 16, 2015, Agents followed McFadden to an apartment complex near Augusta, Georgia, where McFadden and Ford met out of view of the surveillance agents.  Shortly after Ford and McFadden met, McFadden was stopped by Troopers with the South Carolina Highway Patrol that were working with the FBI.  A search of McFadden’s van revealed 5 kilograms of powder cocaine hidden in an aftermarket “trap” compartment behind the dash of the van.  Paperwork in the van confirmed that McFadden had purchased the van from Ford several months prior.

On that same day, FBI Agents in the Southern District of Georgia received approval to execute a search warrant at Ford’s home in Mableton, Georgia.  The search revealed $304,431.00 in cash (some of which was in heat sealed bags), approximately 28 grams of powder cocaine, an industrial money counting machine, heat sealing equipment and other paraphernalia associated with drug use and/or trafficking.

Facts presented at Ford’s guilty plea and sentencing demonstrated that Ford supplied McFadden with between 40-50 kilograms of powder cocaine and over 600 kilograms of marijuana during the course of their drug dealing activities.  In total, Ford agreed to forfeit the money that was seized at his house ($304,431.00), two vehicles, and four Rolex watches.  The defendant also agreed to pay a $250,000.00 money judgment.

McFadden was sentenced to 70 months, followed by 3 years of supervised release on January 19, 2016, after having pled guilty to conspiracy to possess with intent to distribute cocaine.

The case was investigated by agents of the Federal Bureau of Investigation and Sumter City Police Department.  Assistant United States Attorney JD Rowell of the Columbia office prosecuted the case.

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Contact Person: Beth Drake (803) 929-3000

Charleston, South Carolina ---- United States Attorney Bill Nettles announced an indictment charging Cynthia Cave, age 45, of Mount Pleasant, with Wire Fraud, a violation of Title 18, U. S. C. § 1343, and Filing a False Tax Return, a violation of Title 26, U. S. C. §7206(1).

Cave is charged with devising a scheme to defraud her employer, a plastic surgery practice owned and operated by a single individual physician in Mt. Pleasant, S.C., starting in or around 2007 and continuing through 2011.  The indictment alleges that Cave, used her position as office manager to utilize the medical practice’s funds to pay for, among other things, personal services, retail items, meals, and travel, all unrelated to the practice and without the knowledge or authorization of the practice’s owner.  The indictment also alleges that Cave willfully made and subscribed false Form 1040s in three separate tax years that she did not believe to be true and correct as to every material matter.

The maximum penalties that Cave could receive are 20 years imprisonment if convicted of Wire Fraud and 10 years imprisonment if convicted for Filing a False Tax Return.  The Indictment is the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service.  Assistant United States Attorney Matt Austin of the Charleston office is prosecuting the case. 

Mr. Nettles stated that the 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: Beth Drake (803) 929-3000

United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:

Spartanburg Resident Charged with Wire Fraud
Claus C. Foerster, age 55, of Spartanburg, South Carolina, was charged in a 5-count indictment with wire fraud, a violation of Title 18, United States Code, Section 1343.  The maximum penalty Foerster could receive for each count is 20 years imprisonment and a maximum fine of $250,000.  The case was investigated by agents of the United States Secret Service and is assigned to Assistant United States Attorney David C. Stephens of the Greenville office for prosecution.

Greenville Resident Indicted for Fraud by Producing Counterfeit Access Devices
Thomas Geter, age 41, of Greenville, South Carolina, was charged in a 1-count indictment with Access Device Fraud, a violation of Title 18, United States Code, Section 1029(a)(4).  The maximum penalty Geter could receive is 15 years imprisonment and a maximum fine of $250,000.  The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.

Belton Resident Indicted for Possession of Child Pornography
Kenneth Allen McCall, age 28, of Belton, South Carolina, was charged in a 1-count indictment with possession of child pornography, a violation of Title 18, United States Code, Section 2252A(a)(5)(B).  The maximum penalty McCall could receive is 20 years imprisonment and a maximum fine of $250,000.  The case was investigated by agents of the United States Probation Office and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.  This case is being brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys 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.

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: T. DeWayne Pearson (803) 929-3000

Columbia, SC - United States Attorney Bill Nettles stated that former Richland County Sheriff’s Deputy Maribel Crespo, age 40, of Columbia, South Carolina, entered a guilty plea to presenting false claims to the United States in violation of Title 18, United States Code, Section 287. According to information presented during the plea hearing, Crespo prepared fraudulent tax returns for other former Richland County Sheriff’s Deputies by adding false and fictitious information to the returns. Crespo attached children’s information to the tax returns so that she could claim them as false dependents and artificially inflate the amount of the tax return. These children were typically citizen children of non-citizen Hispanics in the Columbia area. Crespo would facilitate the payment of part of the return to the parents of the dependent, some to herself and the remainder to the tax filer. Based on IRS calculations, Crespo caused $327,963 in loss to the Treasury based on her fraudulent returns.

Internal Revenue Special Agent in Charge Thomas J. Holloman III said, “IRS, Criminal Investigation takes seriously any attempts to steal taxpayer money through false claims for refunds; and certainly when those false claims are made by someone sworn to uphold the law.” Sentencing in the case has not yet been scheduled, but Crespo faces a maximum penalty of five years of imprisonment and a fine of $250,000. The case was investigated by Special Agents with the Internal Revenue Service (IRS) and the South Carolina Department of Revenue. The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.

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Contact Person: T. DeWayne Pearson (803) 929-3000

Columbia, SC - United States Attorney Bill Nettles stated that Brandon Jamar Samuels age 31 of Columbia, South Carolina, was found guilty after a jury trial of conspiracy to defraud the United States in violation of Title 18, United States Code, Section 371. According to testimony presented during the trial, Samuels and his co-defendants prepared fraudulent tax returns for customers of Daitech Tax Service between 2008 and 2011. Witnesses testified that Samuels instructed them on how to claim bogus business expenses and other deductions on their tax returns in an effort to decrease their tax liability and artificially increase their tax refund. Other witnesses testified that Samuels made fraudulent claims on tax return forms without the customers’ knowledge.

Special Agent in Charge Thomas J. Holloman said, "The IRS, Criminal Investigation is committed to holding unscrupulous tax return preparers accountable for the false information they add to client returns." Sentencing in the case has not yet been scheduled, but Samuels faces a maximum penalty of five years of imprisonment and a fine of $250,000. The case was investigated by Special Agents with the Internal Revenue Service (IRS). The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson and John Potterfield of the Columbia office.

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Contact Person: Stacey Haynes (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Deon Dovell Roberts, age 35, of Fairfax, South Carolina was sentenced to 21 months imprisonment in federal court. On November 2, 2015, Roberts plead guilty to conspiracy to commit wire fraud/cause a train wreck/interfere with a train operator and to interfering with the operation of a train, all in violation of Title 18, United States Code, Sections 371 and 1992(a)(6). United States District Judge J. Michelle Childs sentenced Roberts to 21 months imprisonment to be followed by 3 years of federal supervised release on each charge, to run concurrently, and ordered Roberts to make restitution to Amtrak in the amount of $46,690.27. During the sentencing hearing, Judge Childs stated that this was “a serious crime” and that Robert’s request for a probationary sentence was not appropriate due to the “significant nature of this crime and potentially what could have happened.”

Evidence presented during the earlier guilty plea hearing showed that during the early morning hours of September 6, 2013, Roberts and James Duvall Love parked a car at Bakers Mill Crossing in Allendale, South Carolina, in the path of an oncoming Amtrak passenger train, got out of the car prior to the collision, and then returned to the car after the collision, feigning injury, all for the purpose of submitting bogus claims for personal injuries and other losses. Robert’s co-defendant James Duvall Love age 34, of Fairfax, South Carolina also plead guilty to the charge of conspiracy to commit wire fraud/cause a train wreck/interfere with a train operator and to a separate felon in possession of a firearm charge and was sentenced to 46 months imprisonment in January 2016.  

The case was investigated by the Federal Bureau of Investigation, Amtrak Office of Inspector General, Bureau of Alcohol, Tobacco and Firearms, the Fairfax Police Department, and the Allendale County Sheriff’s Department. Assistant United States Attorneys Eric Klumb and Stacey D. Haynes of the Columbia office handled the prosecution of the case.

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Contact Person: Jamie Schoen (864) 282-2100

Greenville, South Carolina ---- United States Attorney Bill Nettles stated that Timothy Howard, age 50, of Greer, South Carolina has entered a guilty plea in federal court in Anderson, to two counts of Violating Pretreatment Standards of the Clean Water Act, violations of 33 U.S.C. §§ 1317 and 1319, and 40 C.F.R. 403.5(b)(8).  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 on April 2, 2011, Timothy Howard used an American Waste hauling truck to dump waste into a grease trap outside of a Publix in Greenville County, South Carolina.  The grease trap was connected to the ReWa - Renewable Water Resources system.  The site was not a designated waste disposal discharge point, and the illegal dumping violated both the Clean Water Act and Howard’s permit with ReWa. 

On June 18, 2013, Howard again was caught illegally dumping into another grease trap.  The grease trap on this date was located behind a closed restaurant in Lyman, South Carolina, and was connected to the Town of Lyman system.  Again, this was not a designated discharge point, and dumping at this site violated both the Clean Water Act and the Town of Lyman regulations.  At all times relevant to the charges, Timothy Howard was the owner and operator of American Waste, Inc., also known as American Waste Septic Tank Service.

Mr. Nettles stated the maximum penalty for each count of Violating Pretreatment Standards of the Clean Water Act is imprisonment for 3 years and/or a fine of $50,000 per day of the violations.

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

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Contact Person: Benjamin Garner (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Hercules E. Baker of Sumter, South Carolina entered a guilty plea in federal court in Columbia, to Conspiracy to Defraud the United States with Respect to Claims, in violation of Title 18, United States Code, Section 286.  United States District Judge J. Michelle Childs 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, beginning January 2011 and continuing to at least April 2014, Baker and others conspired to defraud the Internal Revenue Service by filing federal income tax returns that claimed false tax refunds.  During the course of the conspiracy, Baker approached third-party tax payers and persuaded them to provide their means of identification and other personal information, all for use in preparing and filing false federal income tax returns.  Members of the conspiracy then directed the Internal Revenue Service to electronically deposit fraudulently obtained refunds into various bank accounts controlled by Baker and others.

Mr. Nettles stated that the maximum penalty for Conspiring to Defraud the United States with Respect to Claims is imprisonment for ten years and/or a fine of $250,000.

The case was investigated by agents of the Internal Revenue Service Criminal Investigations.  Assistant United States Attorney Ben Garner of the Columbia office is prosecuting the case.

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Contact Person: Brad Parham (843) 665-6688

Florence, South Carolina ---- United States Attorney Bill Nettles stated today that  James Christopher Barrett, a/k/a Harry Patterson, has entered a guilty plea in federal court in Florence, SC, to conspiracy to manufacture counterfeit currency of the United States, a violation of 18 U.S.C. § 371.  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 change of plea hearing established that between July and December 2014, Barrett and other individuals manufactured $20.00, $50.00 and $100.00 counterfeit bills.  Barrett was also caught passing some of the counterfeit $100.00 bills at various businesses in Myrtle Beach, SC.

Mr. Nettles stated the maximum penalty for conspiracy to manufacture counterfeit currency is imprisonment for 5 years and/or a fine of $250,000.00

The case was investigated by agents of the Myrtle Beach Police Department and the U.S. Secret Service.  Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.

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Contact Person: Brad Parham (843) 665-6688

Florence, South Carolina ---- United States Attorney Bill Nettles stated today that  Enrique Lombrana-Perez has entered a guilty plea in federal court in Florence, SC, to assaulting a federal correctional officer, a violation of 18 U.S.C. § 111(a)(1).  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 change of plea hearing established that on February 23, 2015, Lombrana-Perez, while an inmate at FCI Williamsburg refused an order to change cells and started an altercation with the correctional officer.  During the altercation, Lombrana-Perez struck the officer in the face. 

Mr. Nettles stated the maximum penalty for assaulting a correctional officer is imprisonment for 8 years and/or a fine of $250,000.00

The case was investigated by agents of the Federal Bureau of Investigation (FBI).  Assistant United States Attorney A. Bradley Parham of the Florence office is prosecuting the case.

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Contact Person: Dean Secor (843) 266-1654

Charleston, South Carolina ---- United States Attorney Bill Nettles stated today that Jose Jamie Villalpando,  a/k/a “Jamie Villapondo,” age 48, of Charleston, and owner of Senor Tequila Restaurants in Charleston, has entered a guilty plea in federal court in Charleston, to False Statement, a violation of 18 U.S.C. § 1001(a)(1).  United States District Judge David C. Norton of Charleston 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 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.

Jose Jaime Villalpando (Villalpando), owner and operator of Senor Tequila, 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.

Mr. Nettles 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 Investigation (DOL-OIG).  Assistant United States Attorney Dean H. Secor of the Charleston office is prosecuting the case.

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

WASHINGTON – A South Carolina man was sentenced to 82 months in prison today for his role in a nationwide health care fraud scheme that defrauded more than 17,000 victims, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney David Rivera of the Middle District of Tennessee.

William M. Worthy II, 53, of Isle of Palms, South Carolina, was sentenced by U.S. District Judge Aleta A. Trauger of the Middle District of Tennessee, who also ordered Worthy to pay $6,524,888.86 in restitution and forfeiture.  Worthy pleaded guilty on Nov. 3, 2015, to one count of wire fraud and one count of conspiring to commit mail fraud, wire fraud, health plan embezzlement and money laundering.

As part of his guilty plea, Worthy admitted that he participated in a scheme to defraud thousands of individuals who purchased purported health care coverage from Worthy and his co-conspirators, when in fact the health care plans were not backed by insurance companies.  The purported health care plans were marketed by Smart Data Solutions LLC, a company located in Springfield, Tennessee, owned and managed by charged co-conspirator Bart Sidney Posey Sr., 48, of Springfield.  Worthy also admitted that he and his co-conspirators embezzled funds from premiums paid by individuals who had signed up for these unauthorized health plans, diverting more than $5.4 million in premiums for their own personal use.  He further admitted that the majority of claims submitted in connection with these unauthorized health plans were never paid and accepted responsibility for more than $7.3 million of losses from the fraud.

Worthy was charged along with Posey Sr., Richard Hall Bachman, 67, of Austin, Texas, and Angela Slavey Posey, 49, of Springfield, in a 57-count indictment returned on June 26, 2013.  The three co-defendants are pending trial.  An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

The U.S. Postal Inspection Service, the FBI, the U.S. Department of Labor’s Employee Benefits Security Administration and Office of Inspector General, the U.S. Secret Service, Internal Revenue Service-Criminal Investigation and the Tennessee Office of the Attorney General investigated the case.  Senior Trial Attorney Nicholas Acker of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Sandra G. Moses and William F. Abely of the Middle District of Tennessee are prosecuting the case. 

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Contact Person: Beth Drake (803) 929-3000

Columbia, South Carolina---- United States Attorney Bill Nettles announced today that Florence resident Willard Lester “Les” Willard, age 51, was sentenced for his role in an international conspiracy to smuggle and distribute approximately $600,000 in prescription drugs in violation of the Food, Drug and Cosmetic Act.  United States District Court Judge Bruce Howe Hendricks sentenced Willard to 12 months home confinement and 5 years probation. 

Beginning in 2010, Willard ran a fulfillment center for foreign drug companies that illegally sold unapproved pharmaceutical drugs to U.S. residents.  He also sold  unapproved prescription drugs to U.S. customers through a website, www.click1market.com, that he maintained and controlled.  Willard shipped more than 10,000 packages containing the smuggled drugs.

“The safety of the U.S. pharmaceutical drug supply is of critical importance,” said Nettles.  “The proliferation of illegal online pharmacies means that individuals like this defendant are putting Americans at risk by selling drugs of unknown quality and efficacy in the interest of profit.  This is not merely a regulatory crime and we will not treat it as such.”    

The case was investigated by Special Agents with the Food and Drug Administration’s Office of Criminal Investigation, working with Homeland Security Investigations and Inspectors with the United States Postal Inspection Service.  Assistant United States Attorney Eric Klumb is prosecuting the case.                  

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Contact Person: Chris Taylor (843) 665-6688

Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Gabriel Emanuel Foxworth, age 27, of Marion, South Carolina, was sentenced to a total of 156 months imprisonment in federal court in Florence, South Carolina. Foxworth’s term of imprisonment will be followed by an appropriate term of supervised release. In October 2015 Foxworth pled guilty to possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime, all in violation of  21 U.S.C. § 841(a)(1)(b)(1)(C) and 18 U.S.C. § 924(c)(1)(A). Chief United States District Judge R. Bryan Harwell of Florence sentenced Foxworth to 36 months for the marijuana charge and 120 months for the firearm charge.

Evidence presented at the earlier change of plea hearing established that on August 27, 2014, a Marion County Combined Drug Unit officer saw Foxworth driving a car on Gregg Avenue.  Foxworth was stopped and subsequently arrested because his license was suspended and police had an active warrant for his arrest. During a pat down search of Foxworth, police found a 9mm pistol loaded with 14 rounds of ammunition in Foxworth's waistband. Police searched Foxworth’s car and located a quantity of marijuana inside the car. Foxworth has prior convictions for distributing cocaine (2007) and possession with intent to distribute marijuana (2012).

The case was investigated by agents of the ATF and Marion County Combined Drug Unit. This case was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Christopher D. Taylor of the Florence office prosecuted the case.

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Contact Person:  Jim May (803)  929-3000

Columbia, South Carolina---- United States Attorney Bill Nettles stated that Larry Flynn, a/k/a L.W., age 40, of Richland County, South Carolina, was sentenced in federal court in Columbia, South Carolina, for operation of an illegal gambling business, a violation of 18 U.S.C. § 1955; tax evasion, a violation of 26 U.S.C. § 7201; and failure to pay taxes, a violation of 26 U.S.C. § 7203.  Senior United States District Judge Joseph F. Anderson of Columbia sentenced Flynn to 15 months in the Bureau of Prisons, plus three years supervised release, and ordered Flynn to pay $251,000 in restitution to the Government.

Evidence presented during the plea and sentencing hearings showed that Mr. Flynn ran the illegal video poker business called Magic Minutes from 2011-13.  Magic Minutes placed video poker machines throughout the state, generally in gas stations, liquor stores and party shops.  The machines allowed gamblers for a fee to play poker, black jack, keno and other games of chance – with the ability to cash out their winnings with the owners of the stores where the machines were housed.  Magic Minutes was a profitable illegal gambling business, in two years making well over a million dollars.  However, during this same time, the defendant paid no taxes and had members of his family on Medicaid.

The case was investigated by agents of the FBI, SLED, IRS, as well as the offices of the South Carolina Attorney General and the United States Attorney’s Office.  Assistant United States Attorneys Jim May and Jay Richardson of the Columbia United States Attorney’s Office prosecuted the case.

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Contact Person: Beth Drake (803) 929-3000

Charleston, South Carolina ---- United States Attorney Bill Nettles stated today that William L. Dodson, of North Charleston, South Carolina was charged in a 1-count indictment.  William L. Dodson was charged with possession of a firearm by a convicted felon, a violation of Title 18, U. S. C. §922(g).  The maximum penalty Dodson could receive is 10 years imprisonment and a maximum fine of $250,000.  The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and North Charleston Police Department and is assigned to Assistant United States Attorney Nick Bianchi of the Charleston office for prosecution.

Mr. Nettles stated that the 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: Office of Public Affairs (202) 514-2007

Washington – Fourteen alleged members of two violent street gangs in South Carolina and alleged associates of both gangs have been indicted by a federal grand jury for allegedly conspiring to participate in a racketeering enterprise and using firearms in the commission of attempted murder in aid of racketeering activity.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney William M. Nettles of the District of South Carolina; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina, Field Division; Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Atlanta Field Office; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland, of the Colleton County, South Carolina, Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina, Police Department; Sheriff Al Cannon of the Charleston County, South Carolina, Sheriff’s Office; Sheriff L.C. Knight of the Dorchester County, South Carolina, Sheriff’s Office; Captain Jon Rogers of the Summerville, South Carolina, Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division – Lowcountry Office made the announcement today upon the unsealing of the indictments.

Cowboys Indictment

According to the indictment, the defendants are members and associates of the Cowboys, a violent criminal street gang with members operating in South Carolina since at least 2009, who resided in an area known as the “Eastside” of Walterboro and are led by Khiry Broughton.  The indictment further alleges that for a period of time, the Cowboys were aligned with another violent criminal street gang in Walterboro known as the Wildboys.

From October 2012 to November 2015, the Cowboys allegedly committed a wide range of crimes in order to further their racketeering scheme, including attempted murders, assault with dangerous weapons, drive-by shootings, home invasion robberies, threats of violence and distribution of narcotics, and charges the following defendants: 

• Broughton, 25, aka Kblacka;
• DaShawn Trevell Brown, 23, aka Shawny;
• Clyde Naquan Hampton, 23, aka One Loyal Shooter;
• Zaquann Ernest Hampton, 22, aka TOB;
• Matthew Rashaun Jones, 22, aka Boogie Mac;
• Christopher Sean Brown, 22, aka Roughish;
• Bryant Jameek Davis, 21, aka Savo;
• William Lamont Cox, 38, aka Wataz; and
• Quintin John Fishburne, 35, aka Q.

The indictment was returned under seal on Feb. 9, 2016, and unsealed yesterday after the nine defendants were arrested. 

Wildboys Indictment

According to the four-count indictment, the defendants are members and associates of the Wildboys, a violent criminal street gang with members operating in various cities in South Carolina, including in Summerville and Walterboro.  Wildboys members and associates allegedly committed a wide range of racketeering activity, including assault with dangerous weapons, murder, robbery and narcotics trafficking.

The indictment charges the following defendants with attempted murder in aid of racketeering activity and using a firearm during a violent crime:

• Joshua Edward Manigault, 30, aka J-Rizzle and Rizzle-Back;
• Brian Manigo, 24, aka B-Nasty;
• Kelvin Mitchell, 28, aka Kevy Boy;
• Damien Robinson, 19, aka Sacked Up; and
• Devin Brown, 21, aka Deno Badazz.

The indictment was returned under seal on Feb. 9, 2016, and unsealed yesterday after the five defendants were arrested.

* * *

The Criminal Division’s Organized Crime and Gang Section is prosecuting the cases in partnership with the 14th Circuit Solicitor’s Office.  The ATF, ICE-HSI, the Colleton County Sheriff’s Office, the Walterboro Police Department, Charleston County Sheriff’s Office, the Dorchester County Sheriff’s Office, the Summerville Police Department and the First Circuit Solicitor’s Office are investigating the cases.

An indictment is not evidence of guilt.  All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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Fourteen alleged members of two violent street gangs in South Carolina and alleged associates of both gangs have been indicted by a federal grand jury for allegedly conspiring to participate in a racketeering enterprise and using firearms in the commission of attempted murder in aid of racketeering activity.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney William M. Nettles of the District of South Carolina; Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina, Field Division; Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Atlanta Field Office; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland, of the Colleton County, South Carolina, Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina, Police Department; Sheriff Al Cannon of the Charleston County, South Carolina, Sheriff’s Office; Sheriff L.C. Knight of the Dorchester County, South Carolina, Sheriff’s Office; Captain Jon Rogers of the Summerville, South Carolina, Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division made the announcement today upon the unsealing of the indictments.

Cowboys Indictment

According to the indictment, the defendants are members and associates of the Cowboys, a violent criminal street gang with members operating in South Carolina since at least 2009, who resided in an area known as the “Eastside” of Walterboro and are led by Khiry Broughton.  The indictment further alleges that for a period of time, the Cowboys were aligned with another violent criminal street gang in Walterboro known as the Wildboys.

From October 2012 to November 2015, the Cowboys allegedly committed a wide range of crimes in order to further their racketeering scheme, including attempted murders, assault with dangerous weapons, drive-by shootings, home invasion robberies, threats of violence and distribution of narcotics, and charges the following defendants: 

• Broughton, 25, aka Kblacka;
• DaShawn Trevell Brown, 23, aka Shawny;
• Clyde Naquan Hampton, 23, aka One Loyal Shooter;
• Zaquann Ernest Hampton, 22, aka TOB;
• Matthew Rashaun Jones, 22, aka Boogie Mac;
• Christopher Sean Brown, 22, aka Roughish;
• Bryant Jameek Davis, 21, aka Savo;
• William Lamont Cox, 38, aka Wataz; and
• Quintin John Fishburne, 35, aka Q.

The indictment was returned under seal on Feb. 9, 2016, and unsealed yesterday after the nine defendants were arrested. 

Wildboys Indictment

According to the four-count indictment, the defendants are members and associates of the Wildboys, a violent criminal street gang with members operating in various cities in South Carolina, including in Summerville and Walterboro.  Wildboys members and associates allegedly committed a wide range of racketeering activity, including assault with dangerous weapons, murder, robbery and narcotics trafficking.

The indictment charges the following defendants with attempted murder in aid of racketeering activity and using a firearm during a violent crime:

• Joshua Edward Manigault, 30, aka J-Rizzle and Rizzle-Back;
• Brian Manigo, 24, aka B-Nasty;
• Kelvin Mitchell, 28, aka Kevy Boy;
• Damien Robinson, 19, aka Sacked Up; and
• Devin Brown, 21, aka Deno Badazz.

The indictment was returned under seal on Feb. 9, 2016, and unsealed yesterday after the five defendants were arrested.

* * *

The Criminal Division’s Organized Crime and Gang Section is prosecuting the cases in partnership with the 14th Circuit Solicitor’s Office.  The ATF, ICE-HSI, the Colleton County Sheriff’s Office, the Walterboro Police Department, Charleston County Sheriff’s Office, the Dorchester County Sheriff’s Office, the Summerville Police Department and the First Circuit Solicitor’s Office are investigating the cases.

An indictment is not evidence of guilt.  All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

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

Washington—A Filipino citizen and the captain of the tanker ship, T/V Green Sky, pleaded guilty today to one felony count in federal court in Charleston, South Carolina, for obstructing a U.S. Coast Guard investigation into pollution crimes aboard the vessel.

Genaro Anciano, 52, who was the highest ranking officer aboard the ship, pleaded guilty to one count of Obstruction of an Agency Proceeding.  The charge stems from a Coast Guard investigation in late August 2015 into the bypass of pollution prevention equipment, including the use of a “magic device,” on the Green Sky.  In court papers, the defendant stated that members of the ship’s engine room, including a senior officer, admitted to illegally discharging overboard.  These admissions occurred prior to the August 2015 Coast Guard inspection at the Port of North Charleston.  During the investigation, Anciano made several false and misleading statements to the Coast Guard to cover up the illegal conduct.

The T/V Green Sky is a 30,263 gross ton, ocean-going vessel that operates as a petroleum and chemical tanker.  The vessel is approximately 600 feet in length and is registered in Liberia.  The vessel is owned by an entity incorporated in the Marshall Islands.  Over the course of several days, the normal operation of the Green Sky generates thousands of gallons of bilge wastes that are contaminated with petroleum products and oil residues.  These bilge wastes must be removed for the vessel to operate safely.

Both the United States and Liberia are parties to the MARPOL treaty, which regulates the overboard discharge of bilge waste.  It was prohibited to discharge bilge wastes from the T/V Green Sky without first running that effluent through the ship’s oily water separator.  According to the MARPOL treaty, all overboard discharges from the vessel’s bilges had to be recorded in the T/V Green Sky’s oil record book.  A bypass of the oily water separator, which is not recorded in the oil record book, jeopardizes the accuracy and integrity of that document.  It is a separate federal crime for oceangoing vessels to enter a U.S. port with a false oil record nook.

Anciano’s sentencing has not been scheduled.

The case was investigated by the U.S. Coast Guard Investigative Service with assistance from inspectors from Sector Charleston as well as Legal from U.S. Coast Guard in Miami.  The case is being prosecuted by Christopher L. Hale of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division and Assistant U.S. Attorney Matt Austin of the U.S. Attorney’s Office for the District of South Carolina in Charleston.

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Contact Person: Dean Secor (843) 727-4381

Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Timothy  David  Mays, age 51, of Walterboro, South Carolina was sentenced in federal court in Charleston, South Carolina, for Wire Fraud, a violation of 18 U.S.C. § 1343, and Willfully Filing a False Income Tax Return, a violation of 26 U.S.C. § 7206(1).  United States District Judge David C. Norton of Charleston sentenced Mays on the wire fraud count to 42 months imprisonment to be followed by 3 years of supervised release, and on the tax count to 36 months imprisonment to be followed by one year of supervised release, with the sentences to run concurrently.

According to court documents and evidence presented in open court, from late 2008 through 2011, Timothy “David” Mays was an insurance agent licensed to sell life insurance and accident/health insurance who also touted himself as a “licensed” investor and CEO of Life Trust Financial, LLC, and MaysGroup Financial, investment companies located in Summerville, South Carolina. During that period, Mays represented that he provided financial services, including the sale of annuities and Certificates of Deposit (CD’s).  Mays placed advertisements in local publications, including those for senior citizens and retirees, for the sale of CD’s that he claimed were being facilitated through local banks. Mays promised the investors that they would receive the advertised rate of return on the CD’s even if the bank rate was lower than he had advertised. Mays also promised that investors would receive bonuses for 401/IRA conversions and rollovers to CD’s if they met threshold investment funding amounts. Mays made all these representations knowing that he did not have any working relationship with the named banks to sell CD’s or any investment products.

Mays received approximately $1,089,000 from investors under the false pretenses that the money provided would be invested by Mays on behalf of the investors as advertised and promised. Mays only invested $200,000 of the funds for one client, and he returned approximately $203,000 to some of the clients who complained to him and asked for their money back. Mays spent approximately $583,000 on a variety of personal and business expenditures, and he turned over approximately $104,000 of funds that he had left in his accounts to federal authorities during the investigation.

Mays also filed a false U.S. Individual Income Tax Return in February 2007 for calendar year 2006 that understated his total income, and he willfully failed to file U.S. Individual Income Tax Returns for calendar years 2007, 2008, and 2009.

In addition to his prison sentence, Judge Norton also ordered Mays to pay restitution in the total amount of $710,138.41 ($583,087.41 to the victims of the fraud scheme and $127,051 to the IRS).

The case was investigated by agents of the Federal Bureau of Investigation (FBI) and the Internal Revenue Service-Criminal Investigation (IRS-CI).  Assistant United States Attorney Dean H. Secor of the Charleston office prosecuted the case.         #####

Contact Person: Jim May (803) 929-3000

Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Alfredo De Jusus Ramirez, age 21, of Henry County, Georgia was sentenced in federal court in Columbia, South Carolina, for conspiracy to distribute methamphetamine, a violation of 21 U.S.C. § 846.  United States District Judge J. Michelle Childs of Columbia sentenced Ramirez to 292 months in the Bureau of Prisons.

Evidence presented at the trial established the DEA began an investigation targeting methamphetamine dealers in the Bamburg area of South Carolina.  The investigation revealed that Douglas Harry and Charles Wallace were the local dealers and that Harry would travel to Atlanta to obtain the methamphetamine.  Agents were able to identify Harry’s suppliers as Richard Proctor (deceased) and Tiffany Walden.  Through the use of various investigative techniques, to include Title III wire intercepts, pole cameras and toll analysis, DEA identified Proctor and Walden’s supplier as Ramirez.  Testimony established that Ramirez transported pound quantities of high quality methamphetamine, known as ICE, from Texas to Atlanta hidden in sealed cans of beans.  Ramirez then distributed the ICE to dealers in the Atlanta area, to South Carolina, and Tennessee.  The Drug Enforcement Administration tested the methamphetamine at 96 to 100 percent pure, which reflects that the meth was made in a “super lab” south of the Texas border.       Ramirez is the final defendant of the conspiracy to sentenced, with Wallace having been sentenced to 211 months, Harry to 115 months, and Walden to 60 months.  The case was investigated by agents of the DEA.  Assistant United States Attorney Beth Drake and Jim May of the Columbia United States Attorney’s Office prosecuted the case.         #####

Contact Person: John Potterfield (803) 929-3000

Columbia, South Carolina---- U.S. Attorney Bill Nettles announced that four individuals were sentenced in federal court in Columbia, SC as part of a mail theft and forgery ring that was operating in the Midlands of South Carolina from July 2014 through November 2014.  Johnnie Wayne Martin, III, 50, of Lexington, SC, Sandra Kay Cheeks, 48, of Lexington, SC, Brodie Kale Sexton, 39, of Columbia, SC, and Brandy Michelle Mitchell, 36, of Lexington, SC, were all sentenced by The Honorable Mary Geiger Lewis.  The four all plead guilty in federal court in 2015 to an indictment which alleged that the individuals would illegally remove checks from mail boxes and other mail receptacles. The indictment further alleged that the defendants would change the amount and the name of the payee on the check to one of the defendants or the name of an innocent victim whose identification had been illegally obtained by the defendants.

Johnnie Martin, III, was sentenced to a term of imprisonment of 42 months with 3 years of supervision upon release and was ordered to pay $7,616.79 in restitution.

Sandra Cheeks was sentenced to a term of imprisonment of 24 months with 1 year of supervision upon release and was ordered to pay $1,044.28 in restitution.

Brodie Sexton was sentenced to a term of imprisonment of 24 months with 1 year of supervision upon release and was ordered to pay $1,264.76 in restitution.

Brandi Mitchell was sentenced to a term of imprisonment of 10 months with 5 years of supervision upon release and was ordered to pay $302.69 in restitution.

The investigation was conducted by the Midlands Financial Crimes Group, or MFCG, and led by the US Postal Inspection Service Columbia, SC field office.  The MFCG is a group of federal, state, and local law enforcement agencies, along with bank investigators and private industry security personnel, that meets once a month to discuss ongoing criminal incidents involving forgery, theft, fraud, identity theft, and other similar white collar crimes in the Midlands of South Carolina.

The case was prosecuted by Assistant US Attorney John Potterfield of the US Attorney’s Office for the District of South Carolina in Columbia, SC.

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Contact Person: Robert Sneed (803) 929-3000

Columbia, South Carolina – The United States District Court of South Carolina awarded a $9,283,123.00 default judgment against Lacy School of Cosmetology and Earnest “Jay” Lacy, for presenting false claims to the U.S. Department of Education for federal student loans and grants, the United States Attorney for the District of South Carolina William Nettles announced today.

  This is a default judgment which the Court granted after the Defendants failed to answer the Complaint or the entry of default.  This civil default judgment is based on a lawsuit originally filed under the qui tam, or whistleblower, provision of the False Claims Act, which allows private persons with knowledge of false claims to bring civil actions on behalf of the government and to share in any recovery.  The whistleblower in this case was represented by the Richard A. Harpootlian Law Firm, of Columbia.  The lawsuit was filed in the District of South Carolina, Case Number 1:13-cv-00218.   Jay Lacy was the President and CEO of the Lacy School of Cosmetology, which before it closed, had four offices in South Carolina:  Aiken (main campus), Lexington, Goose Creek, and Charleston.  The United States Department of Education approved the school to participate in federal student aid programs.  Through its investigation the government learned that the school misappropriated funds by knowingly failing to comply with numerous federal program regulatory requirements, making unauthorized disbursements of federal student aid funds, failing to refund student credit balances, and concealing its actions by submitting false statements of compliance.    The total award of $9,283,123 is based on damages and statutory penalties. The Court held that the government’s actual damages were $2,185,041, which is based on Pell Grants ($2,078,448) and federally backed student loans ($106,593). The False Claims Act requires these damages to be “trebled” (tripled) for a total amount of $6,555,123. Additionally, the False Claims Act imposes a statutory civil penalty ranging from $5,500 to $11,000 per violation; under the minimum civil penalties imposed here, the total civil penalty was $2,728,000.   “This use of the False Claims Act shows we are on the leading edge of qui tam litigation across the country,” said U.S. Attorney Nettles.  “Through this type of litigation we continue our efforts to stop fraud and protect federal funds.”   The case was the result of a coordinated effort among Assistant United States Attorneys Rob Sneed and Fran Trapp of the United States Attorney’s Office for the District of South Carolina and agents for the U.S. Department of Education.    #####

Contact Person: Beth Drake (803) 929-3000

Charleston, South Carolina ---- United States Attorney Bill Nettles stated today that Rondald L. Wheet, age 51, and Bryon Scott Key, age 45, both of Mount Pleasant, South Carolina, were charged in an indictment with Conspiracy to Commit Securities Fraud, a violation of Title 18, U. S. C. §1349; Securities Fraud, a violation of Title 18, U. S. C. §1348; Conspiracy to Defraud the United States, a violation of Title 18, U. S. C. §371; and False Statement, a violation of Title 18, U. S. C. §1001(a)(2). In addition, Bryon Scott Key was charged in the same indictment with two counts of Money Laundering,  in violation of Title 18, U. S. C. §1956(a)(3)(B).

The indictment alleges that Rondald L. Wheet and Bryon Scott Key engaged in a scheme to cause Revolutions Medical Corporation (RMCP), a Nevada corporation with its principal office in Charleston, South Carolina, and whose common stock is publicly traded and registered with the Securities and Exchange Commission (SEC) under Section 12 of the Securities Exchange Act of 1934, to fraudulently issue shares of RMCP stock. The indictment further alleges that Rondald L. Wheet, who was the Chairman and Chief Executive Officer (CEO) of RMCP, and Bryon Scott Key, who was the Investor Relations Representative and Assistant Sales Manager of RMCP, made false statements to the SEC concerning the issuance of those shares of stock and also interfered with and obstructed the lawful functions of the SEC. 

In announcing the indictment, United States Attorney Bill Nettles said “[t]his district is applying significant resources to Securities and Exchange Commission cases. The mission of enforcing SEC cases is essential to a stable economy.”

The maximum penalty for Conspiracy to Commit Securities Fraud is 25 years imprisonment, the maximum penalty for Securities Fraud is 25 years imprisonment, the maximum penalty for Conspiracy to Defraud the United States is 5 years imprisonment, and the maximum penalty for False Statement is 5 years. Each count of Money Laundering carries a maximum penalty of 20 years.

The case was investigated by agents of the Federal Bureau of Investigation (FBI) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.

Mr. Nettles stated that the charges in this Indictment are merely accusations and that the defendants are presumed innocent until and unless proven guilty.

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Contact: (202) 514-2007

Washington — Three Columbia-area, South Carolina Liberty Tax Service franchises deliberately prepare false federal income tax returns in order to increase their customers’ refunds, according to a civil lawsuit filed today by the Justice Department.  The United States’ complaint asks the U.S. District Court for the District of South Carolina to permanently bar the alleged franchisee for all three locations, Christopher Paul Haynes of Irmo, South Carolina, from preparing federal tax returns for others.

According to the suit, Haynes and his employees prepare tax returns that include misstatements such as false or inflated Schedule C (Profit or Loss From Business) income and expenses, bogus dependents, false filing statuses and improper unreimbursed employee business expenses.  For example, the complaint alleges that Haynes’s employees included a bogus “arts and crafts” business on one customer’s tax return and a bogus “hair care” businesses on another’s.  In each case, according to the complaint, the false statements purported to allow the customer to qualify for a larger Earned Income Tax Credit and receive inflated tax refunds from the Internal Revenue Service (IRS).

The lawsuit states that Haynes’s Liberty Tax Service offices have prepared more than 9,700 federal income tax returns since 2010.  Based on adjustments the IRS has made to tax returns prepared and filed by Haynes’s Liberty Tax Service offices for 2010 to 2013, the average tax deficiency for tax returns audited in connection with the IRS’s investigation of Haynes is $3,834 per tax return, according to the suit.

The complaint also alleges that Haynes does not report to the IRS the wages he pays some of his employees, even though the report is required by law.  According to the complaint, Haynes also fails to withhold and pay over to the IRS federal employment taxes for those same employees.

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016.  The IRS has some tips on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters.  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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Note: the complaint for permanent injuntion is attached as a pdf file.

Contact Person: Beth Drake (803) 929-3000

Charleston, South Carolina ---- United States Attorney Bill Nettles stated today that Abigail Lee Kemp, age 24, of Smyrna, Georgia, was charged in a 2-count indictment.  Abigail Lee Kemp was charged with robbing the Jared Vault jewelry store in Bluffton, SC, a violation of Title 18, U. S. C. §1951 as well as possession of a firearm during a crime of violence, a violation of Title 18, U. S. C. §924(c).  The maximum penalty Kemp could receive is 45 years imprisonment and a maximum fine of $500,000. 

Kemp is currently in federal custody in Florida after being indicted in the Northern District of Florida for conspiring to rob numerous jewelry stores and possession of a firearm during those robberies. The case was investigated by agents of the Federal Bureau of Investigation and Beaufort County Sheriff's Office and is assigned to Assistant United States Attorney Nick Bianchi of the Charleston office for prosecution.

Mr. Nettles stated that the charges in this Indictment are merely accusations and that the defendant is presumed innocent until and unless proven guilty.

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Contact Person: Beth Drake (803) 929-3000

United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:

Greenwood Resident Charged with Theft of Government Funds
Richard Barry Scott, age 49, of Greenwood, South Carolina, was charged in a 1-count indictment with theft of government funds, a violation of Title 18, United States Code, Section 641.  The maximum penalty Scott could receive is 10 years imprisonment and a maximum fine of $250,000.  The case was investigated by agents of the Department of Veterans Affairs and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.

Two Individuals Indicted for Conspiracy to Possess Fifteen or More Counterfeit or Unauthorized Access Devices
Aubrionna  D. Eckles, age 21, of Snellville, Georgia, and Donnell J. Slay, Jr., age 21, of Uniondale, New York, were charged in a 1-count indictment with conspiracy to possess fifteen or more counterfeit access devices, a violation of Title 18, United States Code, Section 1029(b)(2). The maximum penalty each defendant could receive is 5 years imprisonment and a maximum fine of $250,000.  The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and is assigned to Assistant United States Attorney William J. Watkins, Jr. of the Greenville office for prosecution.

Anderson Resident Charged with Wire Fraud
Carla Dawn Carnes, age 43, of Anderson, South Carolina, was charged in a 2-count indictment with wire fraud, a violation of Title 18, United States Code, Section 1343.  The maximum penalty Carnes could receive is 20 years imprisonment and a maximum fine of $250,000.  The case was investigated by agents of the Social Security Administration and is assigned to Assistant United States Attorney David C. Stephens of the Greenville office for prosecution.

Cowpens Couple Indicted for VA Fraud
Pamela Bullington, age 27, and Matthew Logan, age 30, of Cowpens, South Carolina, were charged with Theft of Government Funds, a violation of Title 18, United States Code, Section 641.  The maximum penalty Bullington and Logan could receive is 10 years imprisonment and a maximum fine of $250,000.  The case was investigated by agents of the Office of Inspector General for Veterans Affairs and is assigned to Assistant United States Attorney Jamie Lea Schoen of the Greenville 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 (803) 929-3000

Columbia, South Carolina---- United States Attorney Bill Nettles stated that Michael Yant, age 40, of Lexington, South Carolina, was sentenced today in federal court in Columbia, South Carolina, for Wire Fraud, a violation of 18 U.S.C. § 1343, in connection with a mortgage fraud scheme.  United States District Judge Joseph F. Anderson, Jr., of Columbia sentenced Yant to five months of incarceration, to be followed by five months home confinement.  Yant also was ordered to pay almost $270,000 in restitution to the U.S. Department of Housing and Urban Development.

Evidence presented at the change of plea hearing established that between November 2011 and December 2013, Yant and others committed mortgage fraud on approximately fifteen Federal Housing Administration (FHA) loans. Specifically, Yant engaged in a prohibited rent-to-own scheme.  Yant collected rent from future buyers and used those funds for the buyer’s down payment at closing. Further, Yant added buyers to other people’s credit accounts as authorized users to enhance the buyer’s credit scores

Yant admitted to falsifying and submitting bank statements of buyers, paying off buyers’ debt and collection accounts, as well as falsifying buyers’ vehicle bills of sale in an effort to forge the origination of the buyer’s down payments. Also, Yant provided forged W-2’s and paystubs for buyers, as well as prepared false employment verifications to conceal the buyer not being an employee of certain businesses.  Further, Yant secured FHA loans for buyers who would not otherwise qualify by paying off the buyers’ debt and collection accounts to increase the buyers’ credit scores.        

The case was investigated by the United States Department of Housing and Urban Development, Office of the Inspector General, and the United States Postal Inspection Service.  Assistant United States Attorney Winston Holliday of the Columbia office prosecuted the case.         

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Contact Person: John Potterfield (803) 929-3000

Columbia, South Carolina---- United States Attorney Bill Nettles stated that Neal Dennis, of Sumter, South Carolina, was sentenced to 6 months imprisonment in federal court.  In September 2015, Dennis pled guilty to an attempt to evade tax, in violation of Title 26, United States Code, Section 7201.  After Dennis completes the term of imprisonment, he will be on federal supervised release for 3 years with home detention for 6 months.  Dennis was also ordered to pay $195,962.00 in restitution to the IRS.  United States District Court Judge Cameron McGowan Currie, of Columbia imposed the sentence.  According to a motion filed by his attorney, Dennis lives in Sumter, South Carolina and operates a heating and air business.

The case was investigated by the IRS.  Assistant United States Attorney John C. Potterfield of the Columbia United States Attorney’s Office prosecuted the case.

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Contact Person: Jamie Schoen

Greenville, South Carolina ---- United States Attorney Bill Nettles stated that yesterday afternoon Mark Stone entered a guilty plea in federal court in Anderson, to Possessing a Firearm After a Felony Conviction, in violation of Title 18, United States Code, Section 922.  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 on June 29, 2015, Macon County officers attempted to pull Stone over for speeding.  Stone fled from police, beginning a chase through North Carolina, South Carolina, and Georgia.  Stone was eventually arrested in Oconee County, 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 burglary, Stone was prohibited from carrying firearms at the time of his arrest.

Mr. Nettles stated the maximum penalty for Possessing a Firearm after a Felony Conviction is imprisonment for Life, and/or a fine of $250,000.

The case was investigated by agents of the ATF, Macon County Sheriff’s Office, the Rabun County Sheriff’s Office, and the Oconee County Sheriff’s Office.  Assistant United States Attorney Jamie Schoen of the Greenville office is prosecuting the case.

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