District of South Carolina

Contact Person: Bob Page (404) 581-6016

Columbia, SC - Joel Perrin Robinson has been sentenced to eight years in prison for shooting a DEA special agent serving a search warrant at Robinson's house.  Agents had obtained the warrant to search his home for chemicals used to manufacture PCP.

“This defendant shot an agent even though the agent was wearing a vest that clearly displayed the word “POLICE” in large, bold letters,” said Acting U.S. Attorney John Horn. “Instead of returning fire, the agents took the defendant into custody without further incident. Their poise under fire reminds us of the challenges that law enforcement agents face every day while serving and protecting the community.”

“This investigation is a reminder of the dangers that law enforcement officers endure daily while protecting and serving the public,” said Daniel R. Salter, the Special Agent in Charge of the DEA Atlanta Field Division.  “Through training and tactics, the officers in this case showed poise by not returning fire, despite being fired upon. Instead, they identified and neutralized the threat. This investigation was successfully prosecuted because of the collective effort between DEA, federal, state and local law enforcement and the United States Attorney’s Office.” 

According to Acting U.S. Attorney Horn, the charges and other information presented in court: On July 6, 2013, a house in Fairburn, Georgia burned to the ground. It burned for two days, and when investigators were finally able to enter the house, they found the charred remains of a large, clandestine phencyclidine (“PCP”) laboratory. Investigation into those responsible for the fire led DEA agents to Robinson’s residence.

On October 20, 2014, DEA agents executed a search warrant at Robinson’s Orangeburg, South Carolina home for chemicals used to manufacture PCP. The agents announced their presence by sounding sirens, flashing lights, and yelling “Police, Search Warrant!” When the agents entered, Robinson grabbed a laser-sighted pistol and fired it into a wall without ever identifying a target.

Robinson then put on slippers, walked to a door leading out to a swimming pool, and opened it. Standing in the pool area were two DEA agents. Robinson activated the laser sight on his weapon and aimed it at one of those agents, who was wearing a ballistic vest with the word “POLICE” written across the front in yellow letters. Robinson shot that agent, hitting him in the arm, causing serious injury. None of the other 19 DEA agents at the scene fired back at Robinson, but moved quickly to take Robinson into custody.

Joel Perrin Robinson, 33, of Orangeburg, S.C., was sentenced Monday July 6, 2015, to eight years in prison to be followed by three years of supervised release by J. Michelle Childs, U.S. District Judge for the District of South Carolina.  He was ordered to pay restitution in the amount of $82,518.31, in addition to any medical bills the DEA Special Agent incurs over the next 90 days.  On February 9, 2015, Robinson pleaded guilty to a charge of using a deadly weapon to assault an officer serving a search warrant.

Agents of the Drug Enforcement Administration and the Federal Bureau of Investigation investigated this case. Valuable assistance was also provided by the Georgia Bureau of Investigation, Georgia State Fire Marshal’s Office, Fulton County Fire Department, Atlanta Fire Department, Snellville Police Department, Henry County Sheriff’s Department, Clayton County Sheriff’s Office, South Carolina Law Enforcement Division (SLED), Richland County Sheriff’s Department, Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Office, Fifth Circuit Solicitor’s Office, and the Columbia Police Department.

Assistant United States Attorneys Michael Herskowitz, Vivek Kothari, Jennifer Whitfield, and Michael J. Brown, who have been admitted as Special Assistant U.S. Attorneys in the District of South Carolina, prosecuted the case.                                                                           

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.

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Contact Person: Dewayne Pearson (803) 929-3000

Columbia, SC - Bill Nettles, United States Attorney for the District of South Carolina, announced today that Arthur Fleming Moler, age 51, of Gaston, was sentenced to 78 months imprisonment for his role in trafficking more than five million dollars’ worth of counterfeit medications. Facts presented during the trial showed that Moler sold and shipped counterfeit goods and medications, including illegal replicas of Viagra and Cialis, from his Columbia based business, South Carolina Liquidations.

According to testimony presented during the case, United States Customs agents discovered counterfeit golf equipment being shipped from China to South Carolina Liquidations at 1215 Shop Road in Columbia, South Carolina. When investigators entered the warehouse, they discovered hundreds of counterfeit designer handbags, sunglasses, electronic equipment and over 230,000 counterfeit erectile dysfunction pills.

The case was investigated by the Department of Homeland Security - Immigration and Customs Enforcement, the South Carolina Secretary of State’s Office and the United States Postal Inspection Service and was prosecuted by Assistant United States Attorney T. DeWayne Pearson 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 Kenneth Crawford, Jr., age 42, of Washington, D.C. and formerly of Columbia, South Carolina, was sentenced to 120 months imprisonment today in federal court in Columbia, South Carolina, after earlier pleading guilty to importation of 100 grams or more of heroin, in violation of Title 21, United States Code, Sections 952, 960(a)(1), 960(b)(2), and Title 18, United States Code, Section 2.  Senior United States District Judge Joseph F. Anderson, Jr., of Columbia imposed the sentence, which will be followed by 8 years of supervised release.

Crawford was one of 10 defendants charged in April 2014, following a series of court-authorized, DEA-monitored wiretaps over several telephones in the Columbia area. The investigation revealed that a group of individuals in the Columbia area were obtaining heroin from various sources outside of South Carolina and then distributing it in the Midlands.  Evidence indicated that Crawford was involved in the 2011 and 2012 importation of heroin into the United States from India. Several packages destined for Crawford and containing heroin were intercepted by law enforcement during the investigation. Evidence further showed that the co-defendants later obtained heroin in New York and transported it back to Columbia where it was distributed. The New York heroin suppliers have been charged by the Eastern District of New York for their role in the drug conspiracy. Three of Crawford’s co-defendants have plead guilty to their role in the drug conspiracy here in South Carolina and have been sentenced as follows: Charles Bradley, age 32, of Columbia was sentenced to 57 months imprisonment with 6 years of supervised release to follow; Anthony Glover, age 40, of Columbia was sentenced to 120 months imprisonment with 8 years of supervised release to follow; and Jessany Lyons, age 25, of Far Rockaway, New York, was sentenced to 37 months imprisonment with 3 years of supervised release.  Co-defendant Eric Bradley has plead guilty and is currently awaiting sentencing. One co-defendant is awaiting trial and is presumed innocent. Four other co-defendants charged in the indictment remain fugitives.

The case was investigated by the Drug Enforcement Administration’s (DEA) High Intensity Drug Task Force, which is comprised of agents and officers from the DEA, Homeland Security Investigations, United States Secret Service, Columbia Police Department, Richland County Sheriff’s Department, South Carolina State Law Enforcement Division (SLED), Lexington County Sheriff’s Department, Kershaw County Sheriff’s Department, Orangeburg County Sheriff’s Department, and the Fifth Circuit Solicitor’s Office. Assistant United States Attorney Stacey D. Haynes of the Columbia United States Attorney’s 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 Jeffrey Scott Green, age 53, and Lisa Flaugher-Green, age 52, both of Easley, pled guilty today in federal court in Greenville, to a conspiracy to defraud, a violation of Title 18, United States Code, Section 1349.  Senior United States District Judge Henry M. Herlong, Jr., of Greenville accepted the pleas and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that this was an Electronic Funds Transfer (“EFT”) debt elimination case.  Various branches of the Sovereign Citizen movement, which denies the jurisdiction and authority of the federal government, teach that they can discharge debts by presenting a check written off a closed account.  The debtor writes on the check “EFT Only for discharge of debt.”  On the back he writes “authorized representative without recourse.”  Sovereign-Citizen groups falsely teach that if the creditor accepts the instrument then the debt is discharged even though no money ever changes hands.  The Defendants were part of a group that endorsed the use of EFT instruments.

It was a part of the scheme and artifice to defraud that Jeffrey Scott Green and Lisa Flaugher-Green wrote checks on closed accounts and noted on the checks “EFT only for discharge of debt.”   They then would mail these bogus “EFT instruments” and accompanying documents to creditors in an effort to trick the creditors into issuing documents noting that the debt was paid in full.   Once the creditor discovered the scam, Defendants would refuse further payment on the grounds of a discharge procured by “EFT instruments.” Agents estimate that the Defendants attempted to eliminate over half a million dollars in debt using the scheme.

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

The case was investigated by agents of the Federal Bureau of Investigation, the Spartanburg County Sheriff’s Office, and the Greenville County Sheriff’s Office.  Assistant United States Attorney Bill Watkins of the Greenville office handled the case.

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Contact: (202) 514-2007

Remarks as prepared for delivery

WASHINGTON, D.C.

Good morning. Before we begin today’s announcement, I want to take a moment to address the heartbreaking and deeply tragic events at Emanuel AME Church in Charleston, South Carolina – a crime that has reached into the heart of that community.  The Department of Justice has opened a hate crime investigation into this shooting incident.  The FBI, ATF, U.S. Marshals Service, Civil Rights Division and U.S. Attorney’s Office are working closely with our state and local partners, and we stand ready to offer every resource, every means and every tool that we possess in order to locate and apprehend the perpetrator of this barbaric crime.  Acts like this one have no place in our country.  They have no place in a civilized society.  And I want to be clear: the individual who committed these unspeakable acts will be found and will face justice.

As we move forward, my thoughts and prayers – and those of our entire law enforcement community, here at the Department of Justice and around the country – are with the families and loved ones of the victims in Charleston.  Even as we struggle to comprehend this heartbreaking event, I want everyone in Charleston – and everyone who has been affected by this tragedy – to know that we will do everything in our power to help heal this community and make it whole again.

I encourage the people of Charleston and the wider area to continue circulating the photos of the alleged perpetrator and report any tip, no matter how minor, to the tip line, which can be reached at 1-800-CALL-FBI.

Today, I’m joined by Secretary [Sylvia] Burwell from the Department of Health and Human Services; Director [Jim] Comey of the FBI; Assistant Attorney General [Leslie] Caldwell of the Justice Department’s Criminal Division; Inspector General [Daniel] Levinson of the HHS Office of Inspector General; and Deputy Administrator and Director Dr. [Shantanu] Agrawal of the Centers for Medicare and Medicaid Services in announcing a major advance in the federal government’s fight against fraud in our nation’s health care system.

Over the last three days, as part of a coordinated, nationwide takedown, the Medicare Fraud Strike Force – a joint initiative of the Departments of Justice and Health and Human Services comprising federal, state and local investigators and law enforcement officials from across the country – joined seven additional U.S. Attorney’s Offices in charging or unveiling charges against 243 defendants in 17 federal districts for their alleged participation in Medicare fraud schemes involving approximately $712 million. This is the largest takedown in the Strike Force’s eight-year history.  It is the largest criminal health care fraud takedown in the history of the Department of Justice.  And it adds to an already remarkable record of enforcement.

The defendants charged include doctors, patient recruiters, home health care providers, pharmacy owners, and others.  They are accused of an array of serious crimes ranging from conspiracy to commit health care fraud to wire fraud to money laundering.  They billed for equipment that wasn’t provided, for care that wasn’t needed, and for services that weren’t rendered.  In one of the more egregious allegations of exploitation of both the Medicare system and vulnerable patients, the owners of a mental health facility in Miami billed for intensive psychotherapy sessions that resulted in tens of millions in reimbursements for the doctors based on treatment that was nothing more than moving patients to different locations.  Several of these patients suffered from illnesses like Alzheimer’s and dementia and were unable even to communicate with their supposed caregivers.

Further, nearly 50 of the defendants in this takedown are charged with fraud related to the Medicare prescription drug benefit program known as Part D, which is the fastest-growing component of the Medicare program overall.  One owner of a health care provider in the Southern District of Florida received $1.6 million from Medicare Part D for prescription drugs the provider never purchased and never dispensed.  Another defendant – a doctor in the Eastern District of Michigan – is alleged to have prescribed unnecessary narcotic pain medications to patients in exchange for the use of their identification information to generate false billings.  Patients who attempted to withdraw from the scheme were threatened with loss of access to prescription narcotics.  Having deepened these patients’ addiction, the doctors then used that addiction to keep patients bound to their scheme.  Taken in total, today’s action represents the first large-scale effort to focus on Medicare Part D fraud – and demonstrates an expanded federal focus on this important issue.

The charges we are announcing today are the culmination of a truly national effort, involving approximately 900 law enforcement personnel acting in concert to execute a set of highly complex and highly coordinated law enforcement activities stretching across the country from Florida to Alaska.  This takedown, like those before it, would not have been possible without the key partnerships forged by the Strike Force over the last eight years among federal, state, and local officials, and the cooperation spurred by the joint initiative known as the Health Care Fraud Prevention and Enforcement Action Team, or HEAT, that was launched by DOJ and HHS in 2009.  As a result of Strike Force operations since 2007, we’ve filed charges against more than 2,300 individuals, accounting for over $7 billion in Medicare losses.  This is a crucial part of the department’s health care fraud enforcement efforts, which include recovery of a total of $15.3 billion through False Claims Act cases involving fraud against federal health care programs since 2009.

Those are extraordinary figures and they reflect our administration-wide commitment to safeguard precious public resources, to rid our health-care systems of fraud and abuse and to sustain the integrity of programs that are essential to the public welfare.  In the days ahead, we will continue our focus on preventing wrongdoing and prosecuting those whose criminal activity drives up medical costs and jeopardizes a system that our citizens trust with their lives.  The Department of Justice is prepared – and I am personally determined – to continue working with our federal, state and local partners to bring about the vital progress that all Americans deserve.

I want to thank all of the law enforcement officials who were part of the team that made this sweeping takedown possible.  Their tireless efforts enabled us to move quickly and aggressively and their inspiring collaboration will be a model for us going forward.

At this time, I’d like to turn things over to Secretary [Sylvia] Burwell, who has been a dedicated leader and indispensable partner in this important work and who will provide additional details on today’s announcement.

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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: Jay Richardson (803) 929-3000

Columbia, South Carolina ? United States Attorney Bill Nettles announced today that Joseph Shawn Chasteen (26) and Cody Dean Howard (20) were sentenced for their involvement in a heroin conspiracy to distribute more than three-and-a-half pounds of heroin. United States District Judge J. Michelle Childs sentenced Chasteen to ten years in federal prison and Howard to nine years.

In February 2014, a joint investigation by ATF, SLED, and the Lancaster County Sheriff’s Office led officers to a residence in Indian Land that was suspected to be involved in a heroin distribution conspiracy. The investigation revealed that persons involved in the conspiracy had obtained a large quantity of heroin in Charlotte and intended to distribute the heroin in Lancaster County. After days of surveillance, officers thwarted the conspiracy after only a small quantity of the heroin was distributed, arresting Chasteen and Howard in possession of more than 3 ½ pounds of heroin along with a sawed-off shotgun.

The case was investigated as part of the ongoing cooperation between the Lancaster County Sheriff, SLED and the Bureau of Alcohol, Tobacco, Firearms, and Explosives to remove violent drug dealers from the streets of Lancaster County. The case was prosecuted by Assistant United States Attorney Jay N. Richardson.

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Contact Person: Beth Drake (803) 929-3061

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

Three Indicted in Jewelry Store Robberies

Columbia, South Carolina ---- United States Attorney Bill Nettles announced today an indictment charging Charles Eloys Johnson, 35, of San Leandro, California; Aquabeus Moore, age 34, of Riverdale, Georgia; and Jerry Harbin, age 29 of Antioch, California, with their roles in two separate jewelry store robberies.

The indictment alleges that all three defendants conspired to rob Sylvan Jewelers in Columbia, SC on February 19, 2015 as well as MP Demetre Jewelers in Charleston, SC on March 4, 2015.  The three are also charged with robbing those locations, on those dates, as well as possessing a firearm during the respective robberies.  The conspiracy and robbery counts carry up to twenty years imprisonment under 18 U.S.C. § 1951(a) and the gun charges carry a mandatory consecutive five years imprisonment under 18 U.S.C. § 924(c).       

The indictment is the result of an investigation conducted by the Federal Bureau of Investigations, City of Charleston Police Department and Columbia Police Department.  Assistant United States Attorney Nathan Williams 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: Winston Holliday (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Gail Shurling, 62,  has entered a guilty plea in federal court in Columbia to Wire Fraud, a violation of 18 U.S.C. § 1343.  United States District Judge Mary Geiger Lewis of Columbia accepted the guilty plea and will impose Shurling’s sentence after the U.S. Probation Office prepares a presentence report.

Evidence presented at the change of plea hearing established that Shurling was the Director of the Center for Manufacturing and Technology (CMAT) at the University of South Carolina.  As director, Shurling submitted fraudulent documentation that allowed CMAT to obtain federal grant money.  The fraudulent documentation indicated that work was completed for the center when it had not been.  Additionally, Shurling approved contracts and payments to shell corporations that were controlled by friends, family members, and herself for work that was not completed.  In total, Shurling submitted approximately $336,000 worth of fraudulent documentation to the University, the Government, and to the entity responsible for administering the grant money.

United States Attorney Bill Nettles stated, "Public corruption is not limited to elected officials, it extends to anyone who misuses the public's money or abuses the public's trust.  The U.S. Attorney's Office, along with our law enforcement partners, will continue to fight public corruption in all its forms.”

Special Agent in Charge Duane Townsend of the United States Department of Commerce, Office of the Inspector General, commented, “the cooperative effort leading to this prosecution is yet another example of how Department of Commerce, Office of Inspector General’s Special Agents work diligently to disclose any criminal activity affecting Department-funded activities.  This case will serve to bring to justice another perpetrator of fraud, recover taxpayer funds, and most importantly, serve as a deterrent to those who might consider abusing programs intended to benefit the public for personal enrichment.  We very much appreciate the cooperation of the United States Attorney’s Office for supporting us in this mission.”

Mr. Nettles stated the maximum penalty for Wire Fraud is imprisonment for 20 years and/or a fine of $250,000.

The case was investigated by agents of the Office of the Inspector General, Department of Commerce, and the FBI.  Assistant United States Attorney Jim May of the Columbia office is prosecuting the case.

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Contact Person:  Beth Drake (803) 929-3061

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

 

Ten Individuals Charged with Conspiracy to Defraud the United States.  The following individuals were charged in a single-count Indictment with conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371.

 

Richard K. Rouse, age 44, of Donalds, South Carolina

Bernard Williams, age 50, of Clinton, South Carolina

Carlton C. Fuller, age 47, of Cross Hill, South Carolina

Earl J. Stewart, age 57, of New Orleans, Louisiana

James W. Reeder, age 45, of Joanna, South Carolina

Paul J. Gibson, age 60, of Johnston, South Carolina 

Willie L. Fuller, age 58, of Greenwood, South Carolina

Leonard T. Hawthorne, age 50, of Clinton, South Carolina

Meredith Q. Williams, age 52, of Greenwood, South Carolina

Clarence Holloway, age 58, of Troy, South Carolina

 

The maximum penalty each could receive is five years imprisonment and a fine of $250,000.00.   The case was investigated by agents of the Department of Veterans Affairs, Office of Inspector General, and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.

 

Anderson County Woman Indicted for Delay of Mail.  Georgia L. Coker, age 22, of Belton, 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 Coker 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.

 

Greenville Man Indicted on Drug Charges.  Keith E. Smith, age 36, of Greenville, South Carolina, was charged in a single-count Indictment with possessing with intent to distribute controlled substances, a violation of Title 21, United States Code, Section 841(a)(1).   The maximum penalty Smith could receive is a minimum term of imprisonment of ten years and a maximum term of life imprisonment and a fine of $8,000,000.  The case was investigated by agents of the Drug Enforcement Administration and is assigned to Assistant United States Attorney William J. Watkins, Jr., 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: William E. Day, II (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Marlon Davis Weaver, age 55, of Pawley’s Island, South Carolina was sentenced in federal court in Florence, for conspiracy to launder money, a violation of 18 U.S.C. § 1956(h).  United States District Judge R. Bryan Harwell imposed a sentence of 12 months and 1 day incarceration after granting the government’s motion for a reduced sentence based on assistance Weaver had provided in the prosecution of others. The Judge also ordered Weaver to pay $1,200,000 in restitution and to serve 3 years supervised release.

Evidence presented at the change of plea hearing established that Weaver was the president and owner of Weaver Company, Inc., a construction company which was located in Conway, SC.  In 2008, the company was awarded a contract with the South Carolina Department of Transportation [SCDOT], to perform paving and asphalt operations on a road construction project on Interstate 95.  Weaver Co. was required to supply a performance and payment bond and general indemnity agreement in order to work on the project.  SafeCo Insurance Company of America sold, wrote and acted as a surety on the bond.  SafeCo required that Marlon Weaver agree to reimburse them if SafeCo suffered any losses as a result of issuing bonds to the company.  He provided a financial statement reflecting assets that SafeCo would be entitled to if Weaver Co. caused losses.  Reflected on this financial statement was Weaver’s investment in a company, Gold & Silver, LLC., and his one-fifth interest in Bucks Port Marina held by Weaver Five, LLC.

On November 20, 2009, the contractor for the SCDOT informed Weaver and SafeCo that it declared Weaver Co. in default of the contract under the bond resulting in SafeCo being required to pay approximately $6,000,000.00 to SCDOT.  Weaver backdated documents to make it appear that he had transferred his interest in these assets to his daughters on September 1, 2009, prior to defaulting on the project, when in fact Weaver remained in control of the assets at all times.  Weaver mailed these fraudulent documents to SafeCo’s attorney, who was representing the insurance company in a civil suit against Marlon Weaver and others.  These documents were received by SafeCo on or about 12/18/2009. 
 

Gold & Silver, LLC. was an investment business owned and operated by Archie Evans, which invested in the futures market.  To make it appear that Weaver had transferred his investment in Gold & Silver to his daughter, Jena Weaver, prior to SafeCo incurring losses, Evans agreed to back date documents to reflect that Weaver’s investment was transferred to her September 1, 2009.  These documents were also mailed to SafeCo’s attorney on April 26, 2010.
  

Weaver hired Attorney Thad Viers to represent him in the civil case filed against him by SafeCo.  Weaver informed Viers that he was trying to hide his assets from SafeCo.  On December 1, 2009, Weaver and Viers entered into a written legal fee/service contract which reflects a nonrefundable retainer fee of $500,000.  Weaver gave Viers $500,000 in the form of two cashier’s checks, one in the amount of $490,000 and the other in the amount of $10,000.  Only the $10,000 check was payment for the retainer fee.  The $490,000 was money that Weaver was attempting to conceal from SafeCo.  The source of the $500,000 was funds that Weaver had pulled out of Weaver Company to prevent SafeCo from getting it.  Viers deposited the $490,000 cashier’s check into his operating account on 12/4/2009, then immediately wrote a check to Archie Evans Ministries for $400,000.  The $400,000 was additional money that Weaver was secretly investing with Evans’ company, Gold & Silver.  The difference of $90,000, Viers was to deposit into his campaign account.  Viers was running for election for a seat in the United States House of Representatives, and wanted his competitors to believe that he had a lot of support so they would drop out of the race.  After earning approximately $30,000 in legal fees, Viers returned the remainder of the money to Weaver.
  

On January 21, 2010, BEJ, LLC. was formed and incorporated to conceal the proceeds from the sale of Weaver’s interest in the marina he had previously pledged as collateral to SafeCo.  The marina was sold in February 2010 and Weaver received approximately $501,000.  Weaver laundered these funds through several bank accounts to include a bank account set up in the name BEJ, LLC.  Between May 18, 2010 and July 22, 2010, Weaver withdrew $400,000 from the BEJ, LLC. account of which approximately $375,000 was converted to cashier’s checks and cashed.  This cash was given to Archie Evans in increments which Evans structured into his bank accounts to avoid a regulatory bank filing. 
  

In January 2011, Thaddaeus Viers set up a trust account at Weaver’s request and agreed to have funds wired or deposited into the account by Evans.  Once the funds were credited to the account, Viers contacted the bank to authorize withdrawal of the funds by Weaver.  Each withdrawal authorized by Viers was for $10,000 or more.  Weaver withdrew the funds purchasing numerous cashier’s checks just under the $10,001 regulatory bank filing reporting requirement, ranging from $7,500 to $9,500.  Weaver would then cash these cashier’s checks at various branches and give the currency back to Archie Evans, in increments of $25,000 to $50,000, to structure deposits into Evan’s bank accounts. This cycle of the banking activity was repeated numerous times.  Between 1/21/2011 and 10/3/2011, $692,000 was credited to Vier’s bank account on behalf of Weaver which was sourced by Evans’ bank account.  Of the amount credited, $375,000 was proceeds from the sale of the marina. Weaver hid a total of 1.2 million dollars of assets he had pledged to SafeCo and SafeCo ultimately lost more than 7 million dollars as the result of issuing bonds to Weaver.  Evans was previously sentenced to 7 years imprisonment and Viers is awaiting sentence for his involvement as a coconspirator.
  

The case was investigated by agents of the Internal Revenue Service and the United States Secret Service.  Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case.

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Contact Person: Beth Drake (803) 929-3000

Columbia, South Carolina---- United States Attorney Bill Nettles today announced the indictment and arrest of Shane Henderson, 41, and Christopher Trent Glover, 42, for conspiracy to possess with intent to distribute and to distribute methamphetamine.  Henderson and Glover were indicted along with eleven individuals who had previously been indicted for conspiracy to traffic methamphetamine and heroin.  Several of the defendants have also been charged with conspiracy to launder money.

The case was investigated by Special Agents with the Drug Enforcement Administration, as well as agents and officers from the State Law Enforcement Division, City of Charleston Police Department, South Carolina Highway Patrol, Spartanburg County Sheriff’s Office and Anderson County Sheriff’s Office. 

Assistant United States Attorney Nick Bianchi of the Charleston office is prosecuting the case.

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

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Contact Person: Bill Watkins (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Nathan C. Johnson, age 51, of Marietta, Patricia T. Brookshire, age 54, of Travelers Rest, and Carmen B. Crudo, age 31, of Hendersonville, North Carolina, pled guilty today in federal court in Anderson, to conspiracy to distribute oxycodone and other controlled substances, a violation of Title 18, United States Code, Section 846.  Senior United States District Judge G. Ross Anderson, Jr., of Anderson accepted the pleas 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 federal Drug Enforcement Administration had undertaken a long-term investigation into the distribution of oxycodone in the upstate of South Carolina.  On July 8, 2014, agents conducted a controlled purchase of 25 oxycodone pills from Cheryl Shipman, who pled guilty earlier this year, using a confidential source.  To fulfill the order, Shipman traveled to meet Johnson and was observed conducting a drug transaction with Johnson.  Further investigation revealed that, in addition to Johnson, Shipman had other sources of supply for Oxycodone and that she sold oxycodone to area dealers and addicts on a daily basis.  Carmen Crudo frequently traveled from Hendersonville, North Carolina, to purchase pills from Shipman.  According to reports from Henderson County, North Carolina, Crudo was arrested on April 24, 2014, after she was observed selling oxycodone obtained from Shipman to a known drug user.  Patricia Brookshire’s role in the conspiracy was to provide Shipman with methadone for resale. On July 10, 2014, Shipman purchased 99 methadone pills from Brookshire.  This transaction was recorded by law enforcement.  

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

The case was investigated by agents of the federal Drug Enforcement Administration.  Assistant United States Attorney Bill Watkins of the Greenville office handled the case.

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Contact Person: Beth Drake (803) 929-3000

COLUMBIA, South Carolina ----  United States Attorney Bill Nettles announced today that the United States Attorney's Office for the District of South Carolina, working alongside the United States Department of Labor, settled with Staples, Inc. and Staples Contract and Commercial, Inc. (collectively, “Staples”) for $275,000 amid allegations that it violated the Family Medical Leave Act of 1993, 29 U.SC. §§ 2601, et seq. (“FMLA”).  The United States contended that Staples, which owns a nation-wide chain of office supply stores, failed to provide notice of employees’ rights under the FMLA, which prevented employee Jeffrey Angstadt from making educated decisions about requesting leave when his wife was diagnosed with cancer and initiated chemotherapy and radiation treatments.  Specifically, the United States contended that:

1. In September 2010, Mr. Angstadt provided notice to Staples of his need to take leave to care for his ailing wife, which qualified as leave under the FMLA.
2. Although Mr. Angstadt was entitled to FMLA leave, and Staples was obligated to provide FMLA leave if requested, Staples did not provide Mr. Angstadt notice of his rights and responsibilities under the FMLA; and Mr. Angstadt was not aware of his rights. Mr. Angstadt’s supervisors were aware of his wife’s condition.
3. Between September 2010 and January 2012, Mr. Angstadt took leave intermittently to care for his wife, and also worked remotely in an attempt to balance his job obligations with the need to care for his wife.
4. As a result of Staples’ failure to provide notice to Mr. Angstadt’s of his rights under the FMLA, he was unlawfully placed on a Performance Improvement Plan and terminated.  Mr. Angstadt was unemployed for a period of time after being terminated.

As part of the Government’s settlement with Staples, Mr. Angstadt will receive $275,000, which consists of front pay, back pay, lost benefits, and liquidated damages.  Staples has agreed to promote compliance with the FMLA by providing training to it Human Resources and managerial personnel regarding FMLA notice and eligibility requirements, investigating and immediately remediating any complaint or potential violation of the FMLA, and posting FMLA enforcement posters at conspicuous places at Staples’ places of employment.

 “The very purpose of the Family Medical Leave Act is to prevent the unfortunate fate of Mr. Angstadt, whose wife passed away last year,” said Mr. Nettles.  “The protections afforded by the FMLA are absolutely critical when an employee is faced with the need to care for himself or a family member; and this office will go to great lengths to ensure its enforcement.”

If you suspect violation of the FMLA, please report it by phone at 1-866-4USWAGE (1-866-487-9243), TTY: 1-877-889-5627, Monday-Friday 8 a.m. to 5 p.m.

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Contact Person: Beth Drake (803) 929-3000

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

Postal employee steals money from the mail
Melvin Lewis Jones, age 58, of Bennettsville, South Carolina was charged in a 1-count indictment.  Melvin Lewis Jones was charged with stealing money from the mail by a postal employee, a violation of Title 18, U. S. C. §1709.  The maximum penalty Jones could receive is 5 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 A. Bradley Parham of the Florence office for prosecution.

Money embezzled from the Department of Veterans Affairs
Reginald Vereen, age 48, of Nichols, South Carolina was charged in a 1-count indictment.  Reginald Vereen was charged with embezzling money from the Department of Veterans Affairs, a violation of Title 18, U. S. C. §641.  The maximum penalty Vereen could receive is 10 years imprisonment and a fine of $250,000.00.  The case was investigated by agents of the Department of Veterans Affairs and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.

Marion County Man Indicted for Drug Trafficking
Gabriel Emanuel Foxworth, age 27, of Marion, South Carolina was charged in a 5-count indictment for Possession with Intent to Distribute Marijuana, a violation of Title 21, U. S. C. §841(a)(1), Felon in Possession of a Firearm, a violation of Title 18, U. S. C. §922(g)(1) and Possession of a Firearm in Furtherance of a Drug Trafficking Crime, a violation of Title 18, U. S. C. §924(c)(1)(A).  The maximum penalty Foxworth could receive is life imprisonment.  The case was investigated by agents of the ATF and Marion County Sheriff’s Office and is assigned to Assistant United States Attorney Christopher D. Taylor of the Florence 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: Stacey Haynes (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Raheem Majeed, a/k/a “Mitch,” age 30, of Columbia, South Carolina was sentenced yesterday to 151 months (12.5 years)  imprisonment along with 8 years of supervised release to follow.  Majeed plead guilty in February to conspiracy to possess with intent to distribute and to distribute 500 grams or more of cocaine and 28 grams or more of crack cocaine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B).  Senior United States District Judge Cameron McGowan Currie imposed the sentence.

Evidence presented at the change of plea hearing established that beginning at least in or around June 2006, and continuing to up and including October 2009, Majeed and others conspired to possess with intent to distribute and to distribute cocaine and crack cocaine in the Columbia, South Carolina area.  The indictment stemmed from a large investigation by the Federal Bureau of Investigation (FBI) in which over 120 defendants were charged following a series of court-authorized, FBI-monitored wiretaps over dozens of telephones in the Columbia area.  The evidence showed that Majeed distributed over 500 grams of cocaine and over 28 grams of crack cocaine while a member of this conspiracy.  Majeed was charged, along with a number of co-defendants, in 2011 and remained a fugitive until his arrest in 2014. Majeed has prior state convictions for robbery with a deadly weapon, possession of marijuana 2nd offense, and possession with intent to distribute marijuana. 

The case was investigated by the FBI Columbia Violent Gang Task Force.  Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.

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Contact Person:  J.D. Rowell, (803) 929-3000

Columbia, South Carolina---- The United States Attorney’s Office announced that Jonathan Pinson, age 45,  of Greenville, South Carolina  was sentenced today in federal court in Columbia, South Carolina, for Conspiracy to Commit Racketeering (Count 1), Theft Concerning Programs Receiving Federal Funds (Counts 2,3) Conspiracy to Commit Wire Fraud (Counts 12, 18), Mail Fraud (Counts 25, 26), Wire Fraud (Counts 27-34), Money Laundering (Counts 35-41) and False Statements (Counts 43-46 and 48-50).  United States District Judge David C. Norton of Columbia sentenced Mr. Pinson to 60 months concurrent on each count of conviction, to be followed by 5 years supervised release. Judge Norton imposed restitution in the amount of $337,843.05.

In June 2014, a jury convicted Mr. Pinson for his involvement in four different schemes.  One scheme revolved around the 2011 homecoming concert at SCSU and Mr. Pinson’s efforts to steer the concert promotion contract to his close friend and former SCSU roommate in exchange for a kickback.

Other schemes included Mr. Pinson’s theft of government funds earmarked for the installation of a diaper plant in Marion County.  Evidence showed that proceeds from the grant, intended to create jobs in rural Marion County, were instead pocketed by Mr. Pinson and his associates, Lance Wright, Tony Williams, and Phil Mims, each of whom has pled guilty to charges related to the fraud.

Mr. Pinson was also convicted of theft of government funds received from a 10 million dollar American Recovery and Reinvestment Act (ARRA) grant (commonly known as stimulus money) intended for the development known as the Village at Rivers Edge (VRE).

In the final scheme Mr. Pinson again used his position as Chairman of the Board of SCSU to influence officials at SCSU to purchase land known as “Sportsman’s Retreat”.  The seller of the property, Richard Zahn, Pinson’s business partner, testified that he agreed to pay a kickback to Mr. Pinson in the form of a new Porsche Cayenne, an SUV valued at approximately 90 thousand dollars.  

During the two and one-half week trial, the Government called twenty witnesses, introduced approximately 200 exhibits and played 118 secretly recorded telephone calls.  The calls, authorized by a court ordered wiretap, covered from July 21 to November 20, 2011.

“The FBI, and its local, state, and federal law enforcement partners, remain vigilant in the fight against Public Corruption and are committed to bringing to justice those who abuse public trust,” said FBI Special Agent in Charge David A. Thomas.  In thanking his law enforcement partners, SAC Thomas added, “The investigation that gave rise to this indictment and the conviction of Mr. Pinson and others is an example of the excellent work being done by the South Carolina Public Corruption Task Force which includes the FBI, the South Carolina Law Enforcement Division and IRS.”

Special Agent in Charge Thomas Holloman said, “The Internal Revenue Service, Criminal Investigations, is committed to using our agent’s expertise in ‘following the money’ to bring accountability to public officials who steal taxpayer dollars to fund their prodigal lifestyles.”

The case was investigated by agents of the Federal Bureau of Investigation (FBI), State Law Enforcement Division (SLED), Department of Housing and Urban Development, Office of Inspector General (HUD-OIG) and Internal Revenue Service, Criminal Investigations (IRS-CI).  Assistant United States Attorney Nancy Wicker, Jane Taylor, Dewayne Pearson, and J.D. Rowell of the Columbia office prosecuted the case.

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

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Shawnetta Belton, age 32, and Althea Mack, age 35, both of Columbia, South Carolina, were sentenced yesterday for Conspiracy to Possess with Intent to Distribute Oxycodone, a violation of Title 21, U. S. C., § 846.  Chief United States District Judge Terry L. Wooten sentenced Belton to ten years imprisonment and Mack to two years imprisonment.  Both were immediately taken into custody.

Evidence presented during their change of plea hearings established that Belton worked for a doctor and had access to his prescription pad. She wrote prescriptions for oxycodone and distributed them to others to be filled.  Some of these unlawful prescriptions were filled in Columbia, others were filled in Beaufort.  Althea Mack was the go-between for the Beaufort prescriptions, receiving them from Belton and distributing them to co-conspirators in Beaufort.  Over ninety prescriptions were passed during the course of the conspiracy.

Previously, Desmond Washington, age 39, of Charlotte, North Carolina, was sentenced to 41 months imprisonment for his involvement in the conspiracy, and Latrincy Carter, age 30, of Columbia, was sentenced to 37 months imprisonment.

United States Attorney Bill Nettles stated, “Those who traffic in prescription drugs prey on the addictions of some of our most vulnerable citizens. Our office has dedicated itself to pursuing these drug dealers to punish their conduct and to provide a disincentive to those who would profit from selling pills illegally.” 

Fifth Circuit Solicitor Dan Johnson stated, “It’s always a good day when the US Attorney and I can work together to make the community better and to create the positive outcomes that the public expects.”  Adds Johnson, “I look forward to working with the United States Attorney and all law enforcement agencies in Richland and Kershaw Counties to further rid our communities of drugs and drug offenders.”

The case was investigated by investigators with the Drug Enforcement Administration, the Richland County Sheriff’s Office, and the S.C. DHEC Bureau of Drug Control.  Assistant United States Attorney Winston Holliday of the Columbia office and Assistant Solicitor Joseph Shenkar of Richland County prosecuted the case.

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Contact Person: John Potterfield (803) 929-3000

Columbia, South Carolina---- John Wayne Martin, III, age 49, of Lexington, South Carolina; and Brodie Kale Sexton, age 37, of Columbia, South Carolina were both arraigned on a 4-count indictment in reference to a mail theft and forgery ring operating in the Midlands of South Carolina from July 2014 through November 2014. They were charged in an indictment with two other individuals; Sandra Kay Cheeks, age 47, of Lexington, South Carolina; and Brandy Michelle Mitchell, age 35, of Lexington, South Carolina; on these charges. The indictment alleges the individuals would illegally remove checks from mail boxes and other mail receptacles.  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.

Martin and Sexton are charged with Criminal Conspiracy, a violation of 18 U. S. C. §1349;  and Aggravated Identity Theft, a violation of 18 U. S. C. §1028A. The maximum sentence each could receive under 18 USC, Section 1349 is a fine of $1,000,000 and/or imprisonment for not more than 30 years.  The defendants face a mandatory sentence of 2 years if convicted under 18 USC, Section 1028A.

The investigation, led by the US Postal Inspection Service Columbia, SC field office, was conducted with the cooperation of federal, state, and local law enforcement agencies, along with private industry security personnel.  These agencies and groups make up the Midlands Economic Crime Group, or MECG, a working group led by the US Postal Inspection Service and the Lexington County Sheriff’s Office 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 is assigned to Assistant United States Attorney John Potterfield of the Columbia office for prosecution.

The United States Attorney further stated that all charges in the Indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty in a court of law.

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Contact Person: Beth Drake (803) 929-3000

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

Summerville Man Indicted for Attempted Possession and Attempted Receipt of Child Pornography
Ernest Christopher Limehouse, age 31, of Summerville, South Carolina, was charged in a 4-count Indictment with Attempted Possession and Attempted Receipt of Child Pornography, a violation of 18 U.S.C. § 2252A.  The maximum penalty that Limehouse could receive is 20 years imprisonment and a maximum fine of $250,000.  The case was investigated by agents of the FBI and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.

Summerville Woman Indicted for Theft of Government Property
Ophelia Williams, age 60, of Summerville, South Carolina, was charged in a 1-count Indictment with Theft of Government Property, a violation of 18 U. S. C. § 641.  The maximum penalty that Williams could receive is 10 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 Rhett DeHart of the Charleston office for prosecution.

Hanahan Man Indicted for Illegal Reentry of an Alien after Removal
Ivan Edgardo Soto Naranjo, a/k/a Juan Chavez Avalos, age 37, of Hanahan, South Carolina, was charged in a one-count Indictment with Illegal Reentry of an Alien after Removal, in violation of Title 8, United States Code, Section 1326(a). The maximum penalty Soto Naranjo could receive is 2 years imprisonment and a $250,000 fine. The case was investigated by 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.

Man Charged with False Statement to a Federal Agency
Divett Lydrell Mays, age 43, of Hurghada, Egypt, was charged in a one-count Indictment with False Statement to a Federal Agency, a violation of Title 18, United States Code, Section 1001(a)(2). The maximum penalty Mays could receive is 5 years imprisonment and a $250,000 fine. The case was investigated by agents of the Department of State, Diplomatic Security Service and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.

Hollywood Man Indicted for Failure to Register as a Sex Offender
Andre Youngblood, a/k/a Michael S. Long, a/k/a Michael Johnson, age 40, of Hollywood, South Carolina, was charged in a one-count Indictment with Failing to Register as a Sex Offender, a violation of Title 18, United States Code, Section 2250(a). The maximum penalty Youngblood could receive is 10 years imprisonment. The case was investigated by agents of the United States Marshals Service and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution. This case is being brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by the United States Attorneys’ Offices and the Criminal Division?s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children, as well as to identify and rescue victims. For more information, please visit www.usdoj.gov/psc.

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 Greenville, South Carolina, returned Indictment(s) against the following: Greenville Residents Charged with Theft of Government Property
John W. Brown, age 63, and Betty Brown, age 57, both of Greenville, South Carolina, were charged in a two-count Indictment charging violations of Title 21, United States Code, Section 843(a)(3), which prohibits obtaining prescription drugs by deception and subterfuge, and Title 18, United States Code, Section 641, which prohibits the theft of government funds or property. The maximum penalty the defendants could receive is four years imprisonment and a fine of $250,000.00. The case was investigated by agents of the Department of Veterans Affairs, Office of Inspector General, and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.

Individual Charged with Escape from Custody
Tishika N. Gatson, age 34, was charged in a single-count Indictment with escaping from the custody of a correctional facility, a violation of Title 18, United States Code, Section 751(a). The maximum penalty Gatson could receive is five years imprisonment and a fine of $250,000.00. The case was investigated by agents of the United States Marshals Service, and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.

Foreign Nationals Charged with Illegal Re-entry
Maclovio Avellaneda-Gama, Miguel Angel Sanchez-Raudales, Magdelena Bartolon-Garcia, David Tello-Sanchez and Alfredo Jimenez-Gonzalez were each charged in Indictments with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326. The maximum penalty each could receive, depending on their prior criminal history, is two to twenty years imprisonment. These cases were investigated by Department of Homeland Security, U.S. Immigration and Customs Enforcement agents and are assigned to Assistant United States Attorney Max Cauthen 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

Columbia, SOUTH CAROLINA – On April 30, 2015, the US Attorney’s Office hosted an awards ceremony in honor of National Crime Victims’ Rights Week. U.S. Attorney William N. Nettles presented awards honoring individuals and organizations that have made outstanding contributions in support of crime victims.  All of the honorees have exemplified dedication and commitment in enhancing efforts to meet crime victims where they are, and to empower crime victims as they pursue justice and recovery.  Mr. Nettles stated that, “It is an honor and privilege to recognize our partners in support of the victims we serve each day”.  Below are the award recipients:

Outstanding Victim Support by a Non-Governmental Agency

Charleston based office of A-21 Campaign - CaraLee Murphy, Director

Outstanding Provider Services

Medical University of South Carolina's National Crime Victims

Research and Treatment Center (NCVC)

Dr. Dean Kilpatrick, Center Director

Dr. Alyssa Rheingold, Director of Clinical Operations

South Carolina Immigrant Victims Assistance Network

Patricia Ravenhorst, Director

OUTSTANDING VICTIM SERVICES

Four Assistant U.S. Attorneys were recognized for their work and dedication in cases involving crime victims.

Nathan Williams- Charleston office

Carrie Fisher-Sherard – Greenville office

Stacey Haynes –Columbia office

 William “Bill” Day- Columbia/Florence offices

National Crime Victims’ Rights week observances are held annually and are led by the Office of Victims of Crime (OVC) by promoting victims’ rights and honoring crime victims and those who advocate on their behalf.  This year’s theme, Engaging Communities-Empowering Victims, highlights the diversity in our communities and focuses on partnerships to serve victims of crime.

United States Attorney’s Office District of South Carolina– National Crime Victims’ Week Awards Program

(L-R) Clarissa Whaley-Victim Witness Coordinator-USAO, Dr. Dean Kilpatrick and Dr. Alyssa Rheingold-MUSC-NCVC, Patricia Ravenhorst- SCVAN/SCIVN, CaraLee Murphy-A-21 Campaign/Charleston, United States Attorney Bill Nettles and Renee Mattox-Victim Witness Coordinator-USAO

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Contact Person: Lance Crick (864) 282-2100

MEDIA ALERT: 12th Annual Project Sentry Logo Contest Winners Announced
Winning Students from Myrtle Beach, Orangeburg, Macedonia, and Pawleys Island

COLUMBIA, South Carolina ---- United States Attorney Bill Nettles announced today the winners of the United States Attorney’s Office 12th Annual Project Sentry Logo Contest.  The winners are from the following schools:

K-2nd grade division winner: Presley Sokolils, Socastee Elementary School, Myrtle Beach, South Carolina

3rd-5th grade division winner: Tamiya Dickson, Marshall Elementary School, Orangeburg, South Carolina

6th-8th grade division winner and OVERALL WINNER: Josiah Agnew, Macedonia Middle School, Macedonia, South Carolina

9th-12th grade division: Kelvin Cheah, Waccamaw High School, Pawleys Island, South Carolina

The winning entries, attached below, were chosen from 529 entries from 47 schools across South Carolina.  Each division winner will receive a $50.00 award, with the overall winner receiving an additional $50.00 award.  All of the students who participated will receive a Certificate of Appreciation for logo submissions.

The statewide contest fosters an opportunity for South Carolina students to tell the entire state how they prevent gun violence in their school and focuses on deterrence of juvenile gun violence and ensuring secure school environments.  The contest was open to students in all South Carolina schools.

The winning entries were selected by “The Insiders,” a select group of students from the South Carolina Department of Juvenile Justice, who travel throughout the state, encouraging troubled children and promoting community awareness of the prevalence and consequences of juvenile crime.  The United States Attorney's Office coordinated with the South Carolina Law Enforcement Officers’ Association Foundation (SCLEOA) to provide the cash awards to the winners.

Project Sentry, which is part of the district’s Project Safe Neighborhoods/Project CeaseFire program, is a vital step in strengthening our ability to prevent gun crimes among our young people and to ensure a safe learning atmosphere for our children.  For more information on the Project Sentry program and to view this year’s winning submissions (also attached below) as well as winning logos over the years, visit http://www.justice.gov/usao/sc/programs/logowinners.html

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2015 Project Sentry Logo K-2 Winner Presley Sokolils
2015 Project Sentry Logo 3-5 Winner Tamiya Dickson
2015 Project Sentry Logo 6-8 and Overall Winner Josiah Agnew
2015 Project Sentry Logo 9-12 Winner Kelvin Cheah

Contact Person: DeWayne Pearson (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Joseph Patrick Gelli age 23 of Lexington has entered a plea of guilty to conspiracy to commit money laundering in violation of Title 18, United States Code, Section 1956. According to facts presented during the guilty plea hearing, Gelli was involved in trafficking illegal drugs through the use of Bitcoin, an internet based money system. Gelli used bitcoins to purchase marijuana and psychotropic mushrooms from illegal websites located on “the deep web”, a section of the internet not accessible through common search engines like Google or Yahoo. Gelli had the illegal drugs delivered to his home and then he would distribute the illegal drugs to his customers. A search of Gelli’s home revealed a variety of illicit drugs and $38,000 in cash. Sentencing in the case has not yet been scheduled, but Gelli faces a maximum penalty of twenty years of imprisonment and a fine of $500,000.

Thomas J. Holloman, III Special Agent in Charge, IRS Criminal Investigation said, "Mr. Gelli’s criminal activities involved the laundering of specified unlawful activity using Bitcoin‎, a virtual currency that can be used in a wide variety of crimes involving tax fraud, money laundering, and other financial crimes. IRS-CI will continue to focus on financial crimes that involve virtual currency by collaborating with FinCEN, its internal business units and other federal law enforcement agencies to identify the movement of illegal monies utilizing virtual currency.”

The case was investigated by Special Agents with the Internal Revenue Service and the Lexington County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.

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Contact Person: William Witherspoon (803) 929-3000

Columbia, South Carolina---- United States Attorney Bill Nettles stated that Kevin Lamont Loney, age 38, of Sumter County, South Carolina was sentenced today in federal court in Columbia, South Carolina, for possession with the intent to distribute 28 grams or more of crack cocaine, 500 grams or more of cocaine and a quantity of marijuana, a violation of 21 U.S.C. §§ 841(a) (1) 841(b) (B) and 841(b)(1)(D).  Senior United States District Judge Margaret B. Seymour of Columbia sentenced Loney to 300 months imprisonment (25 years) followed by 8 years of supervised release and a special assessment of $100.

Evidence presented at the change of plea hearing established that a search warrant was executed at Loney’s residence.  The search warrant was based upon the purchase of half a kilogram of cocaine from Loney by the police.  Based upon this purchase and other information, the officers obtained the search warrant for Loney’s home.  During the search, they found more than 500 grams of cocaine, 96 grams of crack cocaine and 20 kilograms of marijuana in Loney’s home.  Loney was arrested.

The case was investigated by agents of the Drug Enforcement Administration Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives and Sumter County Sheriff's Department.  Assistant United States Attorney William K. Witherspoon of the Columbia office prosecuted the case.

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Contact Person: Nick Bianchi (843) 727-4381

Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Michael R. Rea, age 63, of Round O, South Carolina was sentenced today in federal court in Charleston, South Carolina, for manufacturing and possessing with intent to distribute marijuana, a violation of 21 U.S.C. § 841.  United States District Judge Richard M. Gergel of Charleston sentenced Rea to 5 years imprisonment, to be followed by 4 years supervised release.

Evidence presented at the change of plea hearing established that Rea was arrested after law enforcement executed a search warrant at his residence on January 3, 2014.  During the search, law enforcement confiscated approximately 1,800 marijuana plants and 65 pounds of harvested marijuana.  After his arrest, Rea told officers that he had been growing marijuana since 1989.

The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Colleton County Sheriff’s Office, the Walterboro Police Department and the South Carolina Law Enforcement Division (SLED).  Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.

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Contact Person: Nick Bianchi (843) 727-4381

Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Horace E. Green, age 25, of North Charleston, South Carolina was sentenced today in federal court in Charleston, South Carolina, for discharging of a firearm in furtherance of a drug trafficking crime, a violation of 18 U.S.C. § 924(c).  United States District Judge Richard M. Gergel of Charleston sentenced Green to 15 years imprisonment, to be followed by 4 years supervised release.

Evidence presented at the change of plea hearing established that Green approached an individual about selling marijuana to him.  Green then attempted to rob the individual, and as the individual fled, Green fired multiple shots from a .38 revolver at the individual.  The individual was not hit by any of the shots fired by Green.

The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the North Charleston Police Department.  Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.        

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Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Houston G. Leake, age 70, of Fountain Inn, pled guilty today in federal court in Greenville, to conspiracy to distribute hydrocodone and other controlled substances, a violation of Title 18, United States Code, Section 846.  Senior United States District Judge G. Ross Anderson, Jr., 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 the federal Drug Enforcement Administration along with the Fountain Inn Police Department had undertaken a long-term investigation of Leake.  Agents used a confidential informant and an undercover police office to make 7 buys of hydrocodone and Percocet pills from Leake.  Based on the undercover buys, law enforcement executed a search warrant at Leake’s home.  Inside they found various controlled substances including morphine, methadone, oxycodone and hydrocodone.  Law enforcement also found various firearms.

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

The case was investigated by agents of the Fountain Inn Police Department and the federal Drug Enforcement Administration.  Assistant United States Attorney Bill Watkins of the Greenville office handled 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 Florence, South Carolina, returned Indictment(s) against the following:

Illegal Re-Entry Into U.S. After Being Deported
Jose Matias Benitez, age 43, of Horry County, South Carolina was charged in a 1-count indictment.  Jose Matias Benitez was charged with illegal re-entry into the U.S. after being deported, a violation of Title 8, U. S. C. §1326(a).  The maximum penalty Benitez could receive is 2 years imprisonment and a maximum fine of $250,000.  The case was investigated by deportation officers of the U.S.  Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.

Illegal Re-Entry Into U.S. After Being Deported
Roberto Vasquez-Gonzalez, a/k/a Rober Gonzalez, age 23, of Horry County, South Carolina was charged in a 1-count indictment.  Roberto Vasquez-Gonzalez, a/k/a Rober Gonzalez was charged with illegal re-entry into the U.S. after being deported, a violation of Title 8, U. S. C. §1326(a).  The maximum penalty Benitez could receive is 2 years imprisonment and a maximum fine of $250,000.  The case was investigated by deportation officers of the U.S.  Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO), and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.

Identity Theft
Lauren E. Blackwell, age 28, of Bishopville, South Carolina was charged in a 2-count indictment.  Lauren E. Blackwell was charged with identity theft, a violation of Title 18, U. S. C. §1028(a)(7), and unauthorized use of a credit card, a violation of Title 18, U. S. C. §1029(a)(2).  The maximum penalty Blackwell could receive is 15 years imprisonment and a maximum fine of $250,000.  The case was investigated by agents of the U.S. Postal Inspection Service and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.

Manufacturing and Possessing Counterfeit Money
Donald Gene McIntyre, age 39, of Myrtle Beach, South Carolina was charged in a 2-count indictment.  Donald  Gene McIntyre was charged with manufacturing counterfeit money, a violation of Title 18, U. S. C. §471, and possession of counterfeit money, a violation of Title 18, U. S. C. §472.  The maximum penalty McIntyre could receive is 20 years imprisonment and a maximum fine of $250,000.  The case was investigated by agents of the United State Secret Service and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.

Embezzling Social Security Funds
Lucy Wallace, age 52, of Kingtree, South Carolina was charged in a 1-count indictment.  Lucy Wallace was charged with embezzling funds from Social Security Administration, a violation of Title 18, U. S. C. §471.  The maximum penalty Wallace could receive is 10 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 A. Bradley Parham of the Florence office for prosecution.

New York Man Indicted for Trafficking Heroin
Dany Alexis Toro-Munera, age 29, was charged in a 1-count indictment for Possession with Intent to Distribute Heroin, a violation of Title 21, U. S. C. §841(a)(1).  The maximum penalty Toro-Munera could receive is 40 years imprisonment and a maximum fine of $2,000,000.  The case was investigated by the Florence County Sheriff's Office and the Drug Enforcement Administration Task Force and is assigned to Assistant United States Attorney Christopher D. Taylor of the Florence 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: (202) 514-2007

WASHINGTON – Franklin Brown, 35, and Eric Walters, 39, both former police officers with the city of Marion Police Department in Marion County, South Carolina, were sentenced to serve 18 months and one year and one day in prison, respectively, today in federal court in Florence, South Carolina, by U.S. District Court Judge R. Bryan Harwell for repeatedly tasing a former local female resident during the course of her detainment.  For both defendants, three years of supervised release will follow the prison sentences and they each face a $100 special assessment.  Brown and Walters previously pleaded guilty to violating the victim’s civil rights during this incident.

According to court documents, on April 2, 2013, in the course of detaining the victim, Walters tased the victim causing her to fall to the ground and injure her head.  Once she was on the ground, Walters continued to tase the victim multiple times.  Brown subsequently arrived on scene and proceeded to tase the victim as she was seated on the curb, restrained in handcuffs and surrounded by law enforcement.  Walters and Brown admitted there was no legitimate law enforcement purpose for repeatedly tasing the victim as she did not pose a threat to the officers.

“The defendants abused their authority as law enforcement officers by repeatedly tasing a defenseless, compliant victim,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “Today’s sentence is a reminder that this type of abusive and dishonorable behavior will not go unpunished.”

“I thank the Marion Police Department, the FBI and the Civil Rights Division,” said U.S. Attorney Bill Nettles of the District of South Carolina.  “Due to their collective efforts in concert with our office, the officers in this case were brought to justice.”

Today’s sentence resulted from the investigative work of the FBI’s Myrtle Beach Division.  The case is being prosecuted by Trial Attorneys Henry Leventis and Nicholas Murphy of the Civil Rights Division, and Assistant U.S. Attorney John Potterfield of the District of South Carolina.

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Contact Person: Jay Richardson (803) 929-3000

Columbia, South Carolina---- United States Attorney Bill Nettles stated today that James R. Metts, age 68, was sentenced today in federal court in Columbia, South Carolina, for Conspiracy to Harbor Illegal Aliens, a violation of 8 U.S.C. § 1324(a)(1)(A)(v)(I).  Chief United States District Judge Terry L. Wooten sentenced Metts to 12 months and one day in prison, 2 years of supervised release, and a $10,000 fine.

Evidence presented throughout the prosecution established that Metts was the forty-two year sheriff of Lexington County.  Beginning in September 2011, Metts agreed with a City Councilman, and an owner of local restaurants, to assist restaurant employees to avoid identification and processing by a federal immigration program housed at the Lexington County Detention Center.  As one example, on September 16, 2011, a restaurant employee who was an illegal alien was arrested and transported to the detention center.  The restaurant owner contacted the City Councilman who in turn called Metts and requested assistance.  Metts contacted a member of his command staff about the illegal alien. Based on Metts’ early intervention, this alien was released improperly on a state bond prior to being identified or processed by federal immigration authorities as reflected in the federal immigration logbook with the notation, “Release per Sheriff Metts.”

Bill Nettles stated, “One of the cornerstones of democracy is citizens having faith that law enforcement acts with integrity and not in a self-serving ‘good ole boy’ system.  Today’s resolution is a step towards restoring the shine to the badge that Mr. Metts tarnished.”

The case was part of the cooperative efforts of the Federal Bureau of Investigation, Homeland Security Investigation, State Law Enforcement Division, the South Carolina Attorney General’s Office, and the United States Attorney’s Office.  Assistant United States Attorneys Jay N. Richardson and Jim May prosecuted the case.

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Contact Person: John Potterfield (803) 929-3000

COLUMBIA, SOUTH CAROLINA – United States Attorney Bill Nettles stated that United States District Court Judge Bryan Harwell has set sentencing in the case of United States v. Eric Walters and Franklin Brown, Case No.:14-258.

WHEN: Monday, April 27, 2015, at 2:30 p.m. and 3:00 p.m. WHERE: McMillan Federal Building
401 West Evans Street, Courtroom 1
Florence, South Carolina

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Contact Person: Jay Richardson (803) 929-3000

COLUMBIA, SOUTH CAROLINA – United States Attorney Bill Nettles stated that Chief United States District Judge Terry L. Wooten has set a sentencing hearing in the case of United States v. James R. Metts, Case No. 3:14-429.

WHEN: Monday, April 27, 2015, at 9:30 a.m. WHERE: Matthew J. Perry, Jr., Courthouse
901 Richland Street, Courtroom V
Columbia, SC 29201

 

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

Columbia, South Carolina - United States Attorney Bill Nettles stated today that Flavio Torres-Tello, a.k.a. “El Jefe”, age 42, of Newberry was sentenced in connection with a scheme that netted him and others $1.4 million dollars in fraudulent income tax refund checks from the United States Treasury. Torres-Tello pleaded guilty to unlawful identification document transfer in violation of 18 United States Code, Section 1028(a)(2) and aggravated identity theft in violation of 18 United States Code, Section 1028A. According to facts presented during the guilty plea hearing, Torres-Tello directed others to buy or steal IRS form W-2s from migrant workers in and around the Lexington County area. Torres-Tello used the W-2 forms to file hundreds of fraudulent income tax returns, often adding multiple fictitious dependents to inflate the amount of the refunds. Torres-Tello would then generate forged Mexican Consular Identification Cards to use as identification in order to cash the refund checks at retail locations. Torres-Tello received a sentence of 61 months of incarceration and faces deportation upon his release.

“The IRS is aggressively pursuing those who steal others' identities in order to file false returns,” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “Our cooperative work with the U.S. Attorney’s Office will help protect taxpayers in South Carolina from being victimized by identity theft. The IRS is taking additional steps this tax season to further prevent, detect and resolve identity theft cases as soon as possible.” The case was investigated by Special Agents with the IRS, the Department of Homeland Security/HSI, the United States Postal Inspection Service and the South Carolina Law Enforcement Division and was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.

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Contact Person: Beth Drake (803) 929-3000

COLUMBIA, SOUTH CAROLINA – Every April, the Office of Victims of Crime (OVC) helps lead communities throughout the country in their annual observances of National Crime Victims’ Rights Week (NCVRW) by promoting victims’ rights and honoring crime victims and those who advocate on their behalf.  This year’s NCVRW will be held April 19-25 and the theme Engaging Communities, Empowering Victims, presents the opportunity to highlight the diversity in our communities, expand partnerships to serve victims of crime, enhance efforts to meet victims where they are, and empower crime victims as they pursue justice and recovery.

The U.S. Department of Justice will kick off the week with OVC’s annual National Crime Victims’ Service Awards Ceremony in Washington, DC to honor outstanding individual and programs that serve victims of crime.  The US Attorney’s Office will join with state and local partners in observing NCVRW in special events throughout the state, including the South Carolina Victims Assistance Network and State Office of Victim Assistance’s Annual Victims’ Rights Week Conference, April 20 – 22. For more information, visit SCVAN’s website, www.scvan.org.

United States Attorney Nettles will lead the US Attorney’s Office in commemorating the advancement of victims’ rights by honoring several service providers, non-governmental organizations and prosecutors, all champions in advocating and providing support for crime victims in our state. The recognitions will take place on April 30.  Information regarding each of the honorees will be forthcoming.

For more information about the 2015 National Crime Victims’ Rights Week and how your community may assist victims, please contact www.ovc.gov.

United States Attorney’s Office Victims’ Rights Recognitions

WHEN:       Thursday, April 30, 10:00 am – 11:00 am

WHERE:      USAO – 1441 Main Street, Suite 500, Columbia, SC

6th Floor Conference Room

* Paid parking is available behind 1441 Main Street and at meters on the street.

* Please ensure to bring a photo ID in order to gain entrance to the suite.

* Kindly be in place 10 minutes prior to the start of the ceremony.

 

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Contact Person: Brad Parham (843) 665-6688

Columbia, South Carolina---- United States Attorney Bill Nettles stated today that  Gary Gibson was sentenced today in federal court in Florence, South Carolina, for failure to register as a sex offender, a violation of 18 U.S.C. § 2250(a).  United States District Judge R. Bryan Harwell of Florence sentenced Gibson to 22 months imprisonment and 5 years supervised release.

Evidence presented during court proceedings established that Gibson was required to register as a sex offender because of his 2001 conviction in Oklahoma for Lewd Acts with Child under 16. Gibson, who has multiple prior convictions for failing to register as a sex offender, also failed to register as a sex offender when he moved to South Carolina in 2012.

The case was investigated by agents of the U.S. Marshal Service.  Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.

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Contact Person: Brad Parham (843) 665-6688

Columbia, South Carolina---- United States Attorney Bill Nettles stated today that  Joseph Smith was sentenced April 17, 2015, in federal court in Florence, South Carolina, for Production of Child Pornography, a violation of 18 U.S.C. § 2251(a), and Possession of Child Pornography, a violation of 18 U.S.C. § 2252A(a)(5)(B).  Chief United States District Judge R. Bryan Harwell of Florence sentenced Smith to 240 months imprisonment and supervised release for life

Evidence presented at the guilty plea hearing established that Smith made numerous video recordings of himself while molesting a minor child.  Agents discovered that Smith then distributed these sexually explicit videos over the internet. During a search of Smith’s computer, agents also uncovered a significant amount of child pornography depicting sexually explicit images of prepubescent children.

The case was investigated by agents of the Immigration and Custom Enforcement.  Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.

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

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Contact: (202) 514-2007

WASHINGTON – In separate actions, the United States has asked a federal court in South Carolina to permanently bar two South Carolina men from preparing federal income tax returns for others, the Justice Department announced today.

In 1997, Clinton A. Broomfield, of Lexington, South Carolina, Tony McGill, of Ladson, South Carolina, and Stacy Middleton formed MBM Tax and Accounting Services LLC to prepare tax returns and provide other financial services.  In 2007, Broomfield, McGill and Middleton ended their formal partnership and opened separate tax preparation businesses.  Broomfield currently manages Summerville MBM Tax Service, while McGill manages MBM Accounting and Tax Services LLC in North Charleston, South Carolina.  Though the partnership ended in 2007, McGill, Broomfield and Middleton continue to share advertising expenses.

In July 2013, the U.S. District Court for the District of South Carolina permanently barred Middleton from preparing federal tax returns for others.  He is not a defendant in the current lawsuit.

The complaints allege that, through Summerville MBM Tax Service and MBM Accounting and Tax Services LLC, Broomfield and McGill prepare returns for customers that unlawfully understate income tax liabilities and overstate refunds.  According to the suit, the defendants fabricate bogus deductions on Forms 1040, Schedule A (Itemized Deductions) and Schedule C (Profit or Loss from Business) that report nonexistent business expenses and deductions on their customers’ returns.  These phony business losses offset the customers’ wages and falsely reduce their income tax liability, according to the suit.

The complaints further allege that Internal Revenue Service (IRS) audited returns prepared by McGill, which revealed tax understatements on 58 of the 61 examined returns, resulting in an average tax deficiency of $5,709 per return.  Of the 147 IRS- examined returns that Broomfield prepared, 123 resulted in an increase of his customer’s tax liability, resulting in an average tax deficiency of $2,817 per return, according to the suit.  Based on the large percentage of audited returns that understate customers’ actual tax liability and the number of returns Bloomfield and McGill prepare, the complaints allege that the U.S. Treasury may have lost millions of dollars in tax revenue as a result of the defendants’ conduct.

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015.  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 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 here.  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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Contact Person: Beth Drake (803) 929-3000

Columbia, South Carolina---- United States Attorney Bill Nettles today announced the indictment and arrest of James Duvall Love, 33, and Deon Dovell Roberts, 34, for conspiracy to commit mail and wire fraud, causing a train wreck, and unlawful interference with a train operator.  The Indictment was returned by a Grand Jury sitting in Columbia but was sealed pending the arrests of the defendants, which occurred earlier today.  The Indictment alleges that on the early morning hours of September 6, 2013, the two men parked a car in the path of an oncoming Amtrak 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.

Love, a convicted felon, was also charged in a separate Indictment with unlawful possession of a shotgun and live shells.

The case was investigated by Special Agents with 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.  Amtrak Inspector General Tom Howard emphasized that: “The safety of the American railroad system is among the highest priorities of the country’s law enforcement agencies. Those who would seek to interfere with the well-being of Amtrak’s passengers and the commerce of the railroads will be held accountable to the greatest extent allowed under the law.”

Assistant United States Attorney Eric Klumb is prosecuting the case.

The United States Attorney stated that the charges alleged in the Indictment 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

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

Younges Island Man Indicted for Investment Fraud
James Futch III, age 60, of Younges Island, South Carolina, was charged in a 1-count Indictment with Wire Fraud, a violation of 18 U.S.C. § 1343.  The maximum penalty that Futch could receive is 20 years imprisonment and a maximum fine of $250,000.  The case was investigated by agents of the FBI and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.

Myrtle Beach Man Indicted for Theft of Government and Tax Fraud
Jose Boyzo, age 49, of Myrtle Beach, South Carolina was charged in a 1-count Indictment with Theft of Government Property involving the cashing of fraudulent tax refund checks, a violation of 18 U. S. C. § 641.  The maximum penalty that Boyzo could receive is 10 years imprisonment and a maximum fine of $250,000.  The case was investigated by agents of the Internal Revenue Service and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.

Goose Creek Man Indicted for Illegal Reentry of an Alien Felon
Edwin Hernandez Hernandez, age 27, of Goose Creek, was charged in a one-count Indictment with Illegal Reentry of an Alien Felon, in violation of Title 8, United States Code, Sections 1326(a) and 1326(b)(1) respectively. The maximum penalty Hernandez could receive is 10 years imprisonment and a $250,000 fine. The case was investigated by 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.

Ladson Man Charged with Manufacturing and Possessing Counterfeit Currency
Chad John Gilman, age 42, of Ladson, was charged in an Indictment with one count of Manufacturing Counterfeit Currency and two counts of Possession of Counterfeit Currency, in violation of Title 18, United States Code, Sections 471 and 472 respectively. The maximum penalty Gilman could receive is 20 years imprisonment and a fine of $250,000 for each count. The case was investigated by agents of Department of Homeland Security, Secret Service and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.

North Charleston Mother and Daughter Charged with Theft of Government Property
Mary Hayre, age 68, and Pamela Jeridore, age 44, both of North Charleston, were charged in a one-count Indictment with Theft of Government Property, a violation of Title 18, United States Code, Sections 641 and 2. The maximum penalty each defendant could receive is 10 years imprisonment and a fine of $250,000. The case was investigated by agents of the U.S. Department of Housing and Urban Development-Office of Inspector General (HUD-OIG) and is assigned to Assistant United States Attorney Dean H. Secor of the Charleston office for prosecution.

Charleston Restaurant Owner Charged with False Statement and Obstruction of Proceedings before Department of Labor
Jose Jamie Villalpando, a/k/a Jose Jamie Villapondo, age 47, of Charleston, and owner of Senor Tequila Restaurant in Charleston, was charged in a four-count indictment with one count of False Statement, a violation of Title 18, United States Code, Section 1001(a)(1) and three counts of Obstruction of Proceedings before Departments, in violation of Title 18, United States Code, Section 1505. The maximum penalty Villalpando could receive for False Statement is 5 years imprisonment and a $250,000 fine, and the maximum penalty he could receive for each count of Obstruction of Proceedings before Departments is 5 years imprisonment and a $250,000 fine. The case was investigated by agents of Department of Labor-Office of Investigation (DOL-OIG) 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: Lance Crick (864) 282-2100

COLUMBIA, South Carolina ---- United States Attorney Bill N. Nettles, stated today that two Aiken men, Jesse James Quarles, 34, and Kenneth Islar, 29, were sentenced in federal court in Columbia, each on charges of felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1).  Quarles, classified as an Armed Career Criminal based on his extensive criminal history, was subject to a statutory mandatory minimum of 15 years in prison and was sentenced to a term of imprisonment of 180 months.  The Court sentenced Islar to 75 months in prison.

Quarles and Islar were indicted in July 2014 by a federal grand jury in separate indictments and entered guilty pleas in October.  As to Quarles, evidence presented at the guilty plea hearing revealed that Quarles possessed a 9mm pistol while at a residence in Aiken County in April 2013.   As to Islar, on May 30, 2014, he possessed and discharged a .380 caliber pistol in the Bi-Lo parking lot in Aiken.  District Judge J. Michelle Childs of Columbia accepted the guilty pleas and sentenced both defendants Quarles and Islar previously waived their right to a detention hearing in October and remain in custody.

Prior to the federal firearms prosecution, Quarles and Islar were selected to participate in the Aiken Safe Communities.  Launched in early 2013, the Aiken Safe Communities Initiative is a unified, proactive community approach to engage, educate, and encourage recurring offenders to change their behavior and make healthy life choices.  The initiative also bands together local, state, and federal law enforcement to expedite the investigation and prosecution of individuals who reoffend in lieu of accepting opportunities and assistance offered by the community during public notification meetings held in Aiken several times a year.  The next Safe Communities Offender Notification meeting will be held at 6pm on Thursday, May 14, 2015, at Aiken City Hall.  The meeting is open to the public.

From 2012-2013, the city of Aiken experienced an 86% reduction in murders.  Earlier this year, the South Carolina Community Development Association presented the city of Aiken with its 2014 Award of Excellence, recognizing community development efforts that have significantly improved the quality of life in the community.

Both cases were investigated by the ATF Regional Anti-Gang Enforcement (RAGE) Unit, a joint gang/violent crime task force with the Aiken Department of Public Safety, Aiken County Sheriff’s Office, North Augusta Department of Public Safety, Richmond County Sheriff’s Office, South Carolina Law Enforcement Division, the 2nd Circuit Solicitor’s Office (Aiken, Bamberg, and Barnwell counties), and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  These prosecutions as well as the United States Attorney’s Office ongoing commitment to the Aiken Safe Communities Initiative are part of Operation CeaseFire.   CeaseFire is a joint local, state, and federal initiative which seeks to prosecute aggressively individuals who unlawfully use, possess, or transfer firearms.  Both cases are assigned to Assistant United States Attorney Lance Crick of the Greenville office.

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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:

Easley Woman Indicted for Delay of Mail by a Postal Employee
Heidi Feil, age 37, of Easley, 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 Feil 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.

Spartanburg County Man Indicted for Delay of Mail by a Postal Employee
Joseph B. Bond, age 58, of Moore, 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 Bond 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.

Fountain Inn Resident Indicted for Possession of Child Pornography
Kenneth E. Brewer age 37, of Fountain Inn, South Carolina, was charged in a single-count indictment with possession of child pornography, a violation of 18 U.S.C. § 2252A(a)(5)(B).  The maximum penalty Brewer could receive is not less than ten years and not more than twenty 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.  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 Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.

Foreign Nationals Charged with Illegal Re-entry
Rubio Carrillo-Domingo, Carlos Eduardo Alvarado-Santos, Ricardo Bautista-Hernandez, Jorge Brito-Villalba, Felipe Ruedas-Campos, Roberto Gonzalez-Valencia, Enrique Romeo Riz-Barrera, and Miguel Vidal-Lopez, were each charged in Indictments with illegal re-entry to the United States, a violation of Title 8, United States Code, Section 1326.  The maximum penalty each could receive, depending on their prior criminal history, is one to twenty years imprisonment. These cases were investigated by U.S. Immigration and Customs Enforcement (ICE) agents and are assigned to Assistant United States Attorney Max Cauthen 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: Lance Crick (864) 282-2100

“Call-in Meeting”, Wednesday April 15, 2015 at 5:30pm
Conway Recreation Center, 1515 Mill Pond Road, Conway, SC 29526

COLUMBIA, South Carolina ---- United States Attorney Bill Nettles stated today that a “call-in meeting” will be held Wednesday, April 15, 2015 at 5:30 pm at the Conway Recreation Center, 1515 Mill Pond Road, Conway, SC  29526.  This meeting is open to the public.  The program, “C-S.T.A.N.D”  an acronym for “Conway – Starting Toward A New Direction”  is an application of the Drug Market Intervention program, coordinated by the United States Attorney’s Office and most recently utilized in the Charleston Farms community in North Charleston beginning in 2011.  This initiative is a unified, proactive approach that bands together local, state and federal law enforcement with community partners in an effort to eradicate open drug dealing in a multiple block area of Conway.  In addition to the federal and state arrests effected last Thursday, several letters, in lieu of arrest warrants, were delivered by law enforcement to lower level targets notifying them of the meeting.

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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, pled guilty yesterday in federal court in Anderson, to conspiracy to defraud the United States. United States District Judge Timothy M. Cain of Anderson accepted the plea and will sentence Harris after the U.S. Probation Office has prepared a pre-sentence report.

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.  Agents estimate that the actual loss to the VA is greater than $140,000.

Mr. Nettles states that the maximum penalty Harris could face is 5 years in prison, and/or a $250,000 fine, 3 years of supervised release, and a special assessment of $100.

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: James Leventis (803) 929-3000

COLUMBIA, SOUTH CAROLINA – United States Attorney Bill Nettles announced today that Health Diagnostics Laboratory, Inc. (HDL), of Richmond, Virginia, has agreed to pay $47 million, and laboratory Singulex, Inc. of Alameda, California, has agreed to pay $1.5 million to resolve allegations that they violated the False Claims Act by paying remuneration to physicians in exchange for patient referrals and billing federal health care programs for medically unnecessary testing.  The government has intervened in three False Claims Act lawsuits based on similar allegations by laboratory Berkeley HeartLab, Inc.; marketing company BlueWave Healthcare Consultants, Inc., and its owners, Floyd Calhoun Dent and J. Bradley Johnson; and former Chief Executive Officer of HDL, Latonya Mallory.

“This marks the culmination of a three year investigation into these corporations, and the individuals that benefited from this fraud can now expect to receive our full attention,” said U.S. Attorney Bill Nettles.

The United States alleged that laboratories HDL, Singulex, and Berkeley induced physicians to refer patients to them for blood tests by paying them process and handling fees of between $10 and $17 per referral and by routinely waiving patient co-pays and deductibles.  The government also alleged that HDL and Singulex conspired with BlueWave to offer kickbacks to physicians on behalf of HDL and Singulex.  As a result of those kickbacks, physicians referred patients to HDL, Singulex, and Berkeley for medically unnecessary tests.  HDL, Singulex, and Berkeley then submitted claims to federal health care programs, including Medicare, for payment for the medically unnecessary tests.  The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federally funded programs.  The Anti-Kickback Statute is intended to ensure that a physician’s medical judgment is not compromised by improper financial incentives and is instead based on the best interests of the patient.

The government actions announced today stem in large part from two whistleblower complaints filed in the District of South Carolina by Dr. Michael Mayes, Scarlett Lutz, and Kayla Webster under the qui tam provisions of the False Claims Act.  Under that Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery.  The whistleblowers’ share of the settlements has yet to be determined.  The Act also permits the United States to intervene in the lawsuits and take over the allegations, which were not the subject of the settlements announced today.

“The District of South Carolina has more than doubled its resources allocated to the pursuit of fraud brought to our attention by whistleblowers,” said U.S. Attorney Nettles.  “Whistleblower actions are a critical tool for holding health care providers accountable for fraudulent and abusive practices not only in South Carolina but nationwide.”

As part of these settlements, HDL and Singulex have agreed to enter into separate corporate integrity agreements with the Department of Health and Human Services, Office of Inspector General (HHS-OIG).  Those agreements provide for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to these settlements.

Two of the lawsuits separately allege that the former Chief Executive Officer of Singulex, Phillipe Goix, and Quest Diagnostics, Inc., parent of Berkeley, are liable for the scheme; the government has declined to intervene in the allegations against Mr. Goix and Quest.

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 $23.8 billion through False Claims Act cases, with more than $15.2 billion of that amount recovered in cases involving fraud against federal health care programs.

These matters were investigated by the U.S. Attorney’s Office for the District of South Carolina, the U.S. Attorney’s Offices for the District of Columbia and the Middle District of North Carolina; the Commercial Litigation Branch of the Justice Department’s Civil Division; HHS-OIG; the FBI; the U.S. Office of Personnel Management Office of Inspector General and the Department of Defense Office of Inspector General, Defense Criminal Investigative Service.

The cases are captioned United States ex rel. Mayes v. Berkeley HeartLab Inc., et al., Case No. 9:11-CV-01593-RMG (D.S.C.); United States, et al. ex rel. Lutz, et al. v. Health Diagnostic Laboratory, Inc., et al., Case No. 9:14-CV-0230-RMG (D.S.C.); and United States ex rel. Riedel v. Health Diagnostic Laboratory, Inc., et al., Case No. 1:11-CV-02308 (D.D.C.).  The claims settled by these agreements and asserted against these companies and individuals are allegations only, and there has been no determination of liability.

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Contact Person: Lance Crick (864) 282-2100

COLUMBIA, South Carolina ---- United States Attorney Bill Nettles, stated today that four Conway men, Marcus Dalton Hemingway, a/k/a “Face,” age 36, Marco Delton Hemingway, a/k/a “Co-Teezy,” a/k/a “Co,” age 36, Albert Tyrone Mayes, a/k/a “JT,” age 40, and Robert Hemingway, Jr., a/k/a “Booda,”age 34, indicted earlier this year by a federal grand jury in a sealed indictment charging a cocaine and crack cocaine conspiracy, a violation of Title 21, United States Code, Section 846, appeared in federal court in Florence this afternoon for arraignment. During the hearing, the government requested that all four defendants be detained.  All four defendants entered not guilty pleas, waived their right to a detention hearing, and remain in federal custody.

Mr. Nettles stated the penalty for conspiracy to possess cocaine and crack cocaine is a maximum term of imprisonment of 20 years, a fine of $1,000,000, a term of supervised release of at least three years in addition to any term of imprisonment, plus a special assessment of $100.

This indictment, unsealed today, follows a year-long undercover investigation by local, state, and federal law enforcement.  The undercover operation yielded multiple drug purchases by undercover officers from dealers in the Conway community.  The indictment is part of the “C-S.T.A.N.D.” program launched in Conway in late 2013.  The program, an acronym for “Conway—Starting Toward a New Direction” is an application of the Drug Market Intervention program, coordinated by the United States Attorney’s Office and most recently utilized in the  Charleston Farms community in North Charleston beginning in 2011.  The initiative is a unified, proactive approach that bands together local, state, and federal law enforcement with community partners in an effort to eradicate open drug dealing in a multiple block area of Conway. In addition to the federal and state arrests effected today, several letters, in lieu of arrest warrants, were delivered today by law enforcement to lower level targets notifying them of a “call-in meeting” to be held next Wednesday, April 15, 2015, at the Conway Recreation Center located at 1515 Mill Pond Road, Conway, South Carolina, 29526.  This meeting is open to the public.

Members of the law enforcement team involved in this initiative include the Conway Police Department, the 15th Circuit Drug Enforcement Unit, the Horry County Police Department, the South Carolina Law Enforcement Division (SLED), the Florence Police Department, the 15th Circuit Solicitors Office, the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Drug Enforcement Administration (DEA).  This case is assigned to Assistant United States Attorney Lance Crick of the Greenville office and Assistant United States Attorney Chris Taylor of the Florence office.

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Contact Person: Winston Holliday (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Tonya M. Hair, age 43, of Jackson, South Carolina, has entered a guilty plea in federal court in Columbia to Uttering Forged Securities, a violation of 18 U.S.C. § 513, and Access Device Fraud, a violation of 18 U.S.C. § 1029(a)(1).  United States District Judge J. Michelle Childs of Columbia accepted the guilty plea and will sentence Hair at a later date.

Evidence presented at the change of plea hearing established that Hair worked as an administrative assistant in an Aiken law firm.  She used various credit cards and bank accounts of the law firm to divert money to herself, starting in mid-2006 and lasting through early 2013.  Investigators identified approximately $270,000 in unlawful transactions attributable to Hair.

Mr. Nettles stated the maximum penalty for both Uttering Forged Securities and Access Device Fraud is imprisonment for ten years and/or a fine of $250,000.

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

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Contact Person: Bill Day (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Larkin Thaddeus Viers, age 36, of Myrtle Beach, South Carolina has entered a guilty plea in federal court in Florence, to money laundering, a violation of 18 U.S.C. § 1957. United States District Judge Brucie Howe Hendricks of Charleston 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 Marlon Weaver was the president and owner of Weaver Company, Inc., a construction company which was located in Conway, SC. In 2008, the company was awarded a contract with the South Carolina Department of Transportation [SCDOT], to perform paving and asphalt operations on a road construction project on Interstate 95. Weaver Co. was required to supply a performance and payment bond and general indemnity agreement in order to work on the project. SafeCo Insurance Company of America sold, wrote and acted as a surety on the bond. SafeCo required that Marlon Weaver agree to reimburse them if SafeCo suffered any losses as a result of issuing bonds to the company. Weaver provided a financial statement reflecting assets that SafeCo would be entitled to if Weaver Co. caused losses to SafeCo. Reflected on this financial statement were Weaver’s investment in a company, Gold & Silver, LLC, and his one-fifth interest in Bucks Port Marina held by Weaver Five, LLC.

On November 20, 2009, the contractor for the SCDOT informed Weaver and SafeCo that it declared Weaver Co. in default of the contract under the bond resulting in SafeCo being required to pay approximately $6,000,000.00 to SCDOT. Weaver back-dated documents to make it appear that he had transferred his interest in the Gold and Silver, LLC and Bucks Port Marina to his daughters on September 1, 2009, prior to defaulting on the project. In fact, Weaver retained control of the assets at all times. Weaver mailed these back-dated, fraudulent documents to SafeCo’s attorney, who was representing the insurance company in a civil suit against Marlon Weaver and others. These documents were received by SafeCo on or about December 18, 2009.

Gold & Silver, LLC, was an investment business owned and operated by Archie Evans, which invested in the futures market. To make it appear that Weaver had transferred his investment in Gold & Silver to his daughter prior to SafeCo incurring losses, Evans agreed to back-date documents to reflect that Weaver’s investment was transferred to the daughter on September 1, 2009. These documents were also mailed to SafeCo’s attorney on April 26, 2010.

Weaver hired Thad Viers to represent him in the civil case filed against him by SafeCo. Weaver informed Viers that he was trying to hide his assets from SafeCo. On December 1, 2009, Weaver and Viers entered into a written legal fee/service contract which reflects a nonrefundable retainer fee of $500,000. Weaver gave Viers $500,000 in the form of two cashier’s checks, one in the amount of $490,000 and the other in the amount of $10,000. Only the $10,000 check was payment for the retainer fee. The $490,000 was money that Weaver was attempting to conceal from SafeCo. The source of the $500,000 was funds that Weaver had pulled out of Weaver Company to prevent SafeCo from getting it. Viers deposited the $490,000 cashier’s check into his operating account at Anderson Brothers Bank on December 4, 2009, then immediately wrote a check to Archie Evans Ministries for $400,000. The $400,000 was additional money that Weaver was secretly investing with Evans’ company, Gold & Silver. The difference of $90,000, Viers was to deposit into his campaign account. After earning approximately $30,000 in legal fees, Viers returned the remainder of the funds to Weaver.

On January 21, 2010, BEJ, LLC, was formed and incorporated to conceal the proceeds from the sale of Weaver’s interest in the marina he had previously pledged as collateral to SafeCo. The marina was sold in February 2010 and Weaver received approximately $501,000. Weaver laundered these funds through several bank accounts to include a First Citizens bank account set up in the name BEJ, LLC. Between May 18, 2010 and July 22, 2010, Weaver withdrew $400,000 from the BEJ, LLC. account of which approximately $375,000 was converted to cashier’s checks and cashed. This cash was given to Archie Evans in increments which Evans structured into his bank accounts in increments of less than $10,000.00, to avoid bank filings.

In January 2011, Viers set up a trust account at the First Citizens Bank, at Weaver’s request, and agreed to have funds wired or deposited into the account by Evans. Once the funds were credited to the account, Viers contacted the bank to authorize withdrawal of the funds by Weaver. Each withdrawal authorized by Viers was for $10,000 or more. Weaver withdrew the funds purchasing numerous cashier’s checks just under the $10,001 bank reporting requirement, ranging from $7,500 to $9,500. Weaver would then cash these cashier’s checks at various branches and give the currency back to Archie Evans, in increments of $25,000 to $50,000, so that Evans could structure deposits into his bank accounts. This cycle of banking activity was repeated numerous times. Between 1/21/2011 and 10/3/2011, $692,000 was credited to Vier’s First Citizen’s Trust account on behalf of Weaver which was sourced by Evans’ bank account. Of the amount credited, 375,000 was proceeds from the sale of the marina.

During the course of this conspiracy, Viers either knew the funds involved were proceeds of some criminal activity, or he was aware of a high probability the funds were the proceeds of some criminal activity and he deliberately avoided learning of the activity, i.e. he deliberately made himself blind to that fact. The funds involved were proceeds of criminal activity as Weaver committed mail fraud when he mailed SafeCo’s attorney back-dated documents concerning the sale of the marina and his investments with Gold & Silver.

Evans previously pled guilty for his involvement in the Ponzi scheme related to this case and was sentenced to 7 years imprisonment. Weaver pled guilty to mail fraud and is waiting to be sentenced.

Mr. Nettles stated the maximum penalty for money laundering is imprisonment for 10 years and/or a fine of $250,000. The case was investigated by agents of the Internal Revenue Service and the United States Secret Service. Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case. #####

Contact Person: Bill Day (803) 929-3000

Florence, South Carolina ---- United States Attorney Bill Nettles stated today that Don Carlos Gibson, Jr., age 48, of Church Hill, Tennessee and formally of Florence, South Carolina, was sentenced in federal court in Florence for Theft of Government Funds, a violation of 18 U.S.C. § 641, and  Identity Theft, a violation of 18 U.S.C § 1028A(a)(1).  United States District Judge R. Bryan Harwell of Florence sentenced Gibson to seven years imprisonment to be followed by three years of Supervised Release and also ordered Gibson to pay $811,592.07 in restitution.

Evidence presented at the change of plea hearing and sentencing established that Gibson collected disability payments from the Department of Veterans Affairs (VA) and the Social Security Administration (SSA) from 1997 to 2013 by falsely claiming he was unable to work. During the time Gibson claimed to be disabled, he attended golfing school in Myrtle Beach and was the general manager of a country club in North Carolina, a car salesman in North and South Carolina, and the pastor of a church in South Carolina and Oklahoma. Gibson's fraud caused losses of $352,576 to the VA and of $407,184 to the SSA. Gibson also caused losses of $51,832 to an individual he defrauded while working as a pastor in Oklahoma. Gibson also used another person’s identity to purchase automobiles and boats and to obtain loans in South Carolina, Tennessee, Oklahoma and Florida.

The case was investigated by agents of the Office of Inspector General (OIG) Department of Veterans Affairs and OIG Social Security Administration.  Assistant United States Attorney William E. Day, II of the Columbia office is prosecuting the case.

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Contact Person: Eric Klumb (843) 727-4381

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that nine more defendants were sentenced for their roles in a bogus lottery scam that targeted elderly victims around the country, by notifying them that they had won a lottery or sweepstakes, but needed to pay fees or taxes in advance in order to receive their winnings.  A total of 18 individuals were indicted in the case; three other defendants had previously been sentenced. United States District Judge R. Bryan Harwell, of Florence, citing the devastating impact on the more than 150 victims of the scam, imposed the following prison terms: Wayne Duffus, 30, of Little River, 156 months; LeGrant Allen, 30, of Charlotte, NC, 15 months; Lorenzo Samuels, 28, of Riverdale, Georgia, 24 months; Denisha Robinson, 27, of Little River, 21 months; Johnte Vereen, 32, of Conway, 19 months; Cameo West, 27, of Little River, 5 months plus 5 months home detention; Jaclyn Freeman, 24, of Little River, 6 months plus 6 months home detention; Kimesha Lewis, 28, of Wilkesboro, NC, 5 months plus 5 months home detention; and Damion McLeish, 34, of North Myrtle Beach, 15 months.  Each was ordered to pay restitution in the amount of $839,827.

The case was investigated by Special Agents with Homeland Security Investigations (HSI) and Inspectors with the United States Postal Inspection Service (USPIS).  Assistant United States Attorneys A. Bradley Parham and Eric Klumb are prosecuting the case.

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Contact Person: David Stephens (864) 282-2100

Greenville, South Carolina ---- United States Attorney Bill Nettles announced that Kathleen Niew, of Chicago, Illinois, pled guilty in Columbia, South Carolina, today to three counts of Wire Fraud in violation of Title 18, United States Code, Section 1343.  Niew faces a possible sentence on each count of up to 20 years in prison and a fine of up to $250,000.00.  The plea was accepted by United States District Judge Mary G. Lewis, who will sentence Niew after an investigation by the United States Probation Office.

Mr. Nettles stated that the case was investigated by the Federal Bureau of Investigation (FBI) along with Assistant United States Attorney David C. Stephens who prosecuted the case. At the guilty plea hearing, Mr. Stephens advised the Court of the following facts.

The FBI working out of Greenville, South Carolina, has conducted a decade long undercover operation into persons offering bogus investments commonly referred to as High Yield Investment Programs.  In these schemes, victims are told that there are secret European medium term note trading programs that are risk free and yield returns of as much as 100% per month.  Such trading programs, of course, do not exist; however, the “pitch” can be so convincing that the U. S. Department of the Treasury has documented tens of millions of dollars of losses every day.

Niew was one of over 150 persons caught in the undercover operation.  She was recorded on the telephone offering one of these bogus investments to persons she believed were potential investors in South Carolina.  Niew then traveled to South Carolina and met in person with the investors who she was led to believe controlled the investment funds of a large national charity.  The amount that she sought to obtain was $100 Million. Unbeknownst to Niew the persons she was dealing with were FBI Special Agents pretending to be potential investors and her entire fraudulent presentation was being videotaped.

Mr. Stephens also advised the Court that in addition to the above-described attempted fraud, it is believed that Niew stole millions of dollars from actual investors and the names of those persons and their exact losses continue to be investigated.  Mr. Nettles asked that anyone who has had financial dealings with Niew and lost money in those dealings to please contact his Victim-Witness Coordinator at (803) 929-3000 or Mr. Stephens at (864) 282-2100.

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