District of South Carolina

Contact Person: Winston Holliday (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that former Williamsburg County Sheriff Michael L. Johnson, age 39, of Salters, South Carolina, and Lester L.  Woods, age 49, of Columbia, South Carolina, were sentenced today for Conspiracy to Commit Wire Fraud, a violation of Title 18, U. S. C. §1349.  Chief United States District Judge Terry L. Wooten sentenced Johnson to 30 months imprisonment and Woods to 33 months imprisonment.  The Court also ordered restitution and imposed 3 years supervised release to follow the terms of imprisonment.  Both were convicted in September 2014 after a four-day trial. 

Evidence presented at the trial established that Lester Woods held himself out as a credit repair specialist.  People would come to him to raise their credit scores, sometimes paying him over $1,000.  He then got in touch with former Sheriff Michael Johnson.

Johnson would write up police reports, or incident reports, saying that a particular client of Woods had been a victim of identity theft in Williamsburg County.  He would then send the incident report to Woods.

Woods would often write out a cover page of accounts that supposedly were fraudulent, attach the incident report Johnson wrote, and fax it to Equifax.  Once Equifax received the report, it relied on the information sent by Woods and Johnson as true and deleted those debts and other derogatory information from Woods’ clients’ credit history.  When the bad debts were removed from the credit history, the credit score of the client would often go up.  This made it more likely that the client could be extended credit or get more loans, but since the underlying debt often remained, the client was much more likely to default on the new debt.

In all, Woods and Johnson caused to be suppressed over $11 million dollars in credit information. 

United States Attorney, Bill Nettles, stated  “Abuse of public office is an abuse of public trust, which is illegal.  Our office will continue to place these prosecutions at the top of our priority list.”

The case was investigated by agents of the Federal Bureau of Investigation.  Assistant United States Attorney Winston Holliday of the Columbia office prosecuted the case.

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Contact Person: John Potterfield (803) 929-3000

Columbia, South Carolina---- United States Attorney Bill Nettles stated today that a guilty verdict against Charles Brown, of Baltimore, Maryland was upheld.

Evidence presented at the trial established that the Department of Veteran's Affairs invited bids on a contract which was set aside for Service Disabled Veteran Owned Small Businesses. The defendant, Charles Brown, bid on the contract, asserting that Executive Medical Transport, LLC, a Columbia based company qualified as disabled veteran owned. The evidence produced at trial further established that although a disabled veteran was listed as an owner of the company, that veteran rarely visited the company and did not exercise control over the operations of the company.

On February 11, 2015, Brown was convicted of seven counts of Wire Fraud.  Brown moved to have those verdicts set aside.  Today, that motion was denied and the verdicts of the jury upheld.

The case was investigated by agents of the Department of Veteran's Affairs Office of Inspector General.  Assistant United States Attorney John C. Potterfield of the Columbia office prosecuted the case.        

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Contact Person: Winston Holliday (803) 929-3000

COLUMBIA, SOUTH CAROLINA -- United States Attorney Bill Nettles stated today that a sentencing hearing has been scheduled in the case of United States v. Lester Woods and Michael Johnson, Case No. 3:14-0093.  Chief United States District Court Judge Terry L. Wooten will preside.

Matthew J. Perry Courthouse

901 Richland Street, Courtroom # 5, Columbia, SC

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Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Kimberly J. Demata, age 30, of Miami, Florida, was sentenced today in federal court in Anderson, for to conspiracy to defraud the United States. United States District Judge Timothy M. Cain of Anderson sentenced Demata to 37 months imprisonment and ordered her to pay over $91,000 in restitution.  She is the last member of the conspiracy to be sentenced.  Earlier, Judge Cain sentenced Yeedser D. Palacios, age 33, Wandy A. Fabre, age 29, and Charles Law, age 28, all of Miami, Florida, to 75 months imprisonment, 54 months imprisonment, and 51 months imprisonment, respectively. 

Evidence presented at the change of plea hearing established that in February 2013, Fabre, Palacios, and Charles Law traveled to South Carolina for the purpose of filing fraudulent income tax returns and receiving bogus refunds.  The three men rented a local hotel room and waited while Kimberly Demata sent them the names, dates of birth, and social security numbers that had been stolen.  The trio used this information to file tax returns and directed that the refunds, through H&R Block Bank, be sent to various addresses in Mauldin, South Carolina. Law, Fabre, and Palacios routinely checked mail boxes for the H&R Block debit cards containing the refund amount.  For returns that they filed using Florida addresses, Demata would check the mail boxes for the cards.

Law enforcement discovered the conspiracy when a citizen reported seeing a Ford Expedition stopping by various mail boxes in his neighborhood.  The Mauldin Police Department and U.S. Postal Inspectors conducted surveillance and arrested the three conspirators after watching them pull items from a local box.  Further investigation revealed that the conspirators filed over 60 fraudulent returns.  The average amount of refund claimed was between $5000 and $7000.  Law enforcement estimates that the conspiracy stole over $350,000 before the first arrests were made on March 15, 2013.

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

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

Columbia, South Carolina - United States Attorney Bill Nettles stated today that Ivon Martinez, age 40 of West Columbia, Alonzo Leon Ortega, age 42 of Lexington, and Francisco Campos Aguilar of Woodruff were sentenced in connection to a scheme to receive over $1.4 million dollars in fraudulent income tax refund checks from the United States Treasury. Leon-Ortega and Campos-Aguilar each entered guilty pleas to one count of conspiracy in violation of 18 United States Code, Section 371. Martinez 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, Martinez bought or stole IRS form W-2s from migrant workers in and around the Lexington County area. Martinez and other members of the conspiracy used the W-2 forms to file fraudulent income tax returns, often adding multiple fictitious dependents to inflate the amount of the refunds. Ortega and Aguilar would then use forged Mexican Consular Identification Cards to cash the refund checks at retail locations around Lexington County. Martinez received a sentence of 42 months of incarceration, Leon Ortega received a sentence of 1 year of incarceration and Campos Aguilar received 8 months of home confinement and 5 years’ probation. In addition, all three defendants face possible deportation. Sentencing dates for the other members of the scheme have not been set.

“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 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: A. Lance Crick (864) 282-2100

COLUMBIA, South Carolina ----- United States Attorney Bill Nettles stated today that Daniel Rodriguez, age 26, of Lilburn, Georgia, was sentenced to 155 months in federal prison earlier this afternoon in federal court in Greenville.  Rodriguez, along with co-defendant, Jesus Buruca-Martinez, age 22, of Lawrenceville, Georgia, were found guilty after a federal trial in September 2014 of conspiracy to distribute 500 grams or more of methamphetamine, a violation of Title 21, United States Code, Section 846.  Rodriguez was also found guilty of two counts of using a communication device (telephone) to facilitate the commission of a drug felony, a violation of Title 21, United States Code, Section 843(b).  United States District Judge J. Michelle Childs presided over the trial and sentenced Rodriguez. Last month, Judge Childs sentenced Buruca-Martinez to a ten-year federal prison sentence.

Evidence presented at trial established that, beginning in early 2012, agents and task force officers with the DEA in Greenville, began investigating an upstate-based methamphetamine distribution network that was being sourced with pounds of methamphetamine from individuals in the Atlanta-area.  Ultimately, over a two-year investigation and some seven superseding indictments, twenty-seven defendants were indicted in the conspiracy, with twenty-five entering guilty pleas.  The investigation revealed that two members of this conspiracy, Dustin Tiller and Nicanor Perez-Rodriguez, both inmates in the South Carolina Department of Corrections at the time, contacted members of their families on the outside to arrange for methamphetamine to be transported from Georgia into South Carolina for further distribution. 

After identifying Daniel Rodriguez as a Georgia-based member of the conspiracy who was making frequent trips to South Carolina to bring methamphetamine as well as collect drug proceeds, members of the Anderson County Sheriff’s Office and Anderson City Police Department were able to establish surveillance on Rodriguez, on Sunday, August 5, 2012, as Rodriguez met with other members of this conspiracy, to include Jesus Buruca-Martinez, in the parking lot of a restaurant, located off of Exit 19, Interstate 85, in Anderson County. 

Agents then maintained surveillance on Rodriguez and Buruca-Martinez as they traveled in tandem, both driving separate vehicles, to a residence in Belton, South Carolina.  Maintaining surveillance on the Belton residence, agents observed Buruca-Martinez leave the residence, followed by Rodriguez’s departure some twenty minutes later.  Traffic stops were conducted on both vehicles and law enforcement seized $20,240 in cash from Buruca-Martinez. 

Following the execution of a federal search warrant at the Belton residence and the arrest of Rodriguez, Buruca-Martinez, and others, that evening, agents reviewed a home surveillance system seized in the search.  The surveillance system had an operational camera imaging the living room of the residence, attached to a digital video recording (DVR) system.  In reviewing the images on the DVR, which dated back some two weeks from the incident date, agents observed Rodriguez arriving at the residence on two previous occasions in July 2012. 

Regarding the activity inside the residence on August 5, 2012, a review of the video revealed Rodriguez, Buruca-Martinez, and third co-conspirator, who rode with Rodriguez that day from Georgia, counting, for several minutes, over $20,000 in cash. Witnesses testified that this cash was partial payment applied to the overall drug debt owed to Rodriguez and others for pounds of methamphetamine previously provided on consignment.  As the money count concluded, the video showed Buruca-Martinez bundling two cash parcels, placing one in each cargo short pocket, and exiting the residence, ultimately heading south on Interstate 85 before he was stopped by law enforcement. 

Nettles stated that the case was investigated and prosecuted by members of the Organized Crime and Drug Enforcement Task Force (OCDETF), a taskforce coordinated by the United States Attorney’s Office.  Members of the task force involved in this investigation included the Anderson County Sheriff’s Office, the Anderson City Police Department, the South Carolina Highway Patrol, the Department of Homeland Security, and the Drug Enforcement Administration.  Assistant United States Attorneys Andy Moorman and Lance Crick of the Greenville office handled the prosecution.

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Contact Person: Jim May (803) 929-3000

Columbia, South Carolina---- United States Attorney Bill Nettles stated that Karo Gotti Blkhoyan, a/k/a “Gotti,” age 34, of Glendale, California was sentenced last week in federal court in Columbia, South Carolina, for Conspiracy to Commit Money Laundering , a violation of 18 U.S.C. § 1956(h). Senior United States District Judge Cameron McGowan Currie of Columbia sentenced Blkhoyan to 57 months and three years supervised release. Blkhoyan was fugitive for approximately two years, when was arrested at the San Francisco International Airport attempting to re-enter the country.

Evidence presented established that the conspiracy was a transnational criminal organization that established a “ghost” medical clinic in South Carolina using stolen information from a South Carolina doctor. Members of the conspiracy enrolled the clinic in Medicare, established bank accounts, linked the bank accounts to a fictitious address which was a mailbox store, registered the clinic with the South Carolina Secretary of State, and began to bill Medicare. All together, the “ghost” clinic billed Medicare over 1.1 million dollars, with Medicare paying approximately $350,000 worth of claims. The money that was paid was laundered through Southern Californian banks and shell businesses by members of the conspiracy. During the sentencing hearing, Blkhoyan challenged his role in the conspiracy; however, the Court found that the defendant was a manager/supervisor of the conspiracy which increased his sentencing guidelines. Two other members of the conspiracy have previously pleaded guilty to laundering money. Four members of the conspiracy are currently international fugitives.

United States Attorney, Bill Nettles, stated ““When the rich take things that don’t belong to them they want us to call it fraud. But let’s be clear, it is stealing, it is wrong and against the law. He stole from all of us. We will continue to aggressively prosecute those who steal from us. Let there be no doubt about that.”

“Healthcare fraud is undoubtedly a lucrative business, but the business of IRS Criminal Investigation and our law enforcement partners, is to pursue criminals such as Karo Blkhoyan, and bring them to justice, no matter where they may attempt to hide.” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “Blkhoyan’s sentence is a warning to others that would defraud Medicare and steal from the programs that provide assistance for individuals in need. We will investigate every dollar, every fraudulent claim, and when you are found, you will go to prison.”

"Our agency is dedicated to investigating those responsible for health care fraud, including this former Most Wanted health care fugitive, who stole scarce taxpayer money meant to pay for legitimate patient care,” said Special Agent in Charge Derrick L. Jackson, of the U.S. Department of Health and Human Services, Office of Inspector General’s Atlanta region. “Working closely with our law enforcement partners, our agents are determined to hold such fraudsters accountable for their crimes."

“Health care fraud affects every American. Waste, fraud and abuse take critical resources out of our health care system, and contribute to the rising cost of health care for all Americans. The sentencing of Karo Blkhoyan, shows the commitment of the FBI to stop those who would illegally manipulate the system. We are pleased with Blkhoyan’s sentence to 57 months,” stated Special Agent Charge, David A. Thomas, Columbia FBI Field Office.

The case was investigated by agents of the HHS OIG, IRS CID and FBI. Assistant United States Attorney Jim May of the Columbia office prosecuted the case.

Contact Person: Winston Holliday (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a jury convicted Benita Dinkins-Robinson, age 40, of Bishopville, South Carolina, after a ten day trial in federal court. Dinkins-Robinson was convicted of two counts of embezzling government funds (18 U.S.C. § 641). United States Chief District Judge Terry Wooten of Columbia presided over the trial. He will impose sentence after he has reviewed the presentence report, which will be prepared by the U.S. Probation Office.

Attorneys presented evidence at the trial and during the asset forfeiture phase of the case that from 2007 to 2013, Dinkins-Robinson embezzled more than a million dollars in federal funds supplied by United States Department of Agriculture and the United States Department of Education that were intended to be used for the Mary L. Dinkins Higher Learning Academy, a charter school Dinkins-Robinson established in 2005. The jury also determined that Dinkins-Robinson must forfeit over $750,000 in annuities that she purchased while serving as the Executive Director of the charter school as well as her share in a Camden house that she owned.

Mr. Nettles stated that Dinkins-Robinson faces a maximum sentence of ten years’ imprisonment for each count.

The conviction was the result of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Winston Holliday and Ben Garner of the Columbia office handled the case.

Contact Person: Jay Richardson (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Jason Amodio (46) of Lexington, South Carolina has entered a guilty plea in federal court in Columbia, to Lying to a Federal Grand Jury, a violation of 18 U.S.C. § 1623. Senior United States District Judge Joseph F. Anderson, Jr. of Columbia accepted the guilty plea.

Evidence presented at the change of plea hearing established that during a joint federal and state investigation into illegal gambling, extortion under color of law, mail and wire fraud, and related public corruption in Lexington County, Amodio appeared before a federal grand jury. Asked about the purpose of a particular check payable to Amodio, Amodio claimed that the check was a loan. In fact, Amodio knew this was false and that the check was an improper payment from an attorney in Lexington. Amodio had assisted in convincing a family to hire that attorney to file a civil lawsuit after a car wreck had left one member of the family dead and one injured. When the attorney received a fee in return for his representation, that attorney then paid Amodio through an intermediary.

“Mr. Amodio went before the federal grand jury, swore on the Bible to tell the truth, and lied; that is a crime,” said United States Attorney Bill Nettles. “This is another joint investigation by the S.C. Attorney General’s Office and the U.S. Attorney’s Office, along with the FBI and SLED, in our ongoing coordinated partnership to prosecute public corruption on all levels.”

As part of his agreement to plead guilty and cooperate with law enforcement, Amodio agreed to be sentenced to four years of probation with eight months of home confinement with electronic monitoring. Additionally, Amodio has agreed to plead guilty in state court to misconduct in office. This case is part of a joint investigation of the FBI, SLED, the South Carolina Attorney General’s Office, and the United States Attorney’s Office into public corruption and is being prosecuted by Assistant United States Attorneys Jay N. Richardson and Jim H. May and Assistant Deputy Attorney General Creighton Waters.

Contact Person: Beth Drake (803) 929-3000

Columbia, South Carolina – An evidentiary hearing is scheduled in United States v. Jonathan Pinson. 3: 12-974. United States District Court Judge David C. Norton will preside over the proceeding.

Contact Person: Eric Klumb (843) 727-4381

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a federal jury sitting in Florence, South Carolina, found Woody Graham, 36, guilty of conspiracy to commit money laundering. Graham was wiring fraud proceeds to Jamaica on behalf of a group running a bogus lottery scam that targeted elderly victims around the country, notifying them that they had won a lottery or sweepstakes, but that they needed to pay fees or taxes in advance in order to receive their winnings. A total of 18 individuals have been indicted in the case; 15 have entered guilty pleas; three have been sentenced to prison terms. United States District Judge R. Bryan Harwell, of Florence, presided over the trial, which lasted two days.

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.

Contact Person: Beth Drake (803) 929-3000

Columbia, South Carolina
 

Matthew J. Perry, Jr., Courthouse
901 Richland Street, Courtroom #4
Columbia, SC 29201

Contact Person: Beth Drake (803) 929-3000

Columbia, South Carolina - United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following: Mauldin Middle School Teacher Indicted for Possession and Distribution of Child Pornography
Daniel Ray Archer, age 56, of Simpsonville, South Carolina, was charged in a 2-count indictment. Archer was charged with Possession of Child Pornography, a violation of Title 18, U. S. C. §2252A(a)(5)(B) and Distribution of Child Pornography, a violation of Title 18, U. S. C. §2252A(a)(2). The maximum penalty Archer could receive for each count is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) special agents and officers of the Greenville County Sheriff's Office and is assigned to Assistant United States Attorney Jamie Lea Schoen of the Greenville office for prosecution.

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

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

Columbia, South Carolina - United States Attorney Bill Nettles stated today that Michael Mark McAdams, age 43, of Myrtle Beach, and Robert Dane Freeman, age 69, of Greenville, SC, have entered guilty pleas to conspiracy to commit wire fraud in violation of Title 18, United States Code, Section 1349. According to facts presented during the guilty plea hearing, McAdams and Freeman solicited millions of dollars from investors in connection with a scheme that purported to double or triple the victims’ money using a series of overseas banking transactions. McAdams was working as an attorney in Myrtle Beach, South Carolina and solicited clients into the fraudulent scheme. McAdams and Freeman used the funds invested by the victims for personal expenses. McAdams also used funds invested by new victims to make lulling payments in order to hide the scheme from previous victims. McAdams has been suspended from the practice of law by the South Carolina Supreme Court. Sentencing in the case has not yet been scheduled, but McAdams and Freeman face a maximum penalty of twenty years of imprisonment and a fine of $250,000. The case was investigated by Special Agents with the Federal Bureau of Investigations (FBI). The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.

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Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Salathiel D. Harrison, age 38, of Fountain Inn, South Carolina, has been sentenced in federal court in Anderson, to conspiracy to steal mail, a violation of Title 18, United States Code, Section 371.  Senior United States District G. Ross Anderson, Jr. of Anderson sentenced Harrison to 27 months imprisonment.  He also ordered Harrison to pay restitution to the victims of his crime.

The evidence at the change of plea hearing established that Harrison recruited individuals to steal mail containing checks and credit cards.  Using the stolen credit card numbers, Harrison ordered expensive items and directed his recruits to pick up merchandise at various stores.  Harrison also used the stolen credit card numbers to rent rooms for his recruits to stay in while they were working for him in the criminal activity.  Law enforcement was able to locate video of Harrison passing stolen checks and retrieving a golf cart that he had purchased with the stolen credit card.  Law enforcement estimates that Harrison stole over $6000 in merchandise before he was apprehended.

The case was investigated by agents of the United States Postal Inspection Service 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 Person: Eric Klumb (843) 727-4381

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Shadiki Brown, 29, of Little River, SC; Davion Bellamy, age 26, of Conway; and Ann Marie Yapp, age 44, of North Myrtle Beach were sentenced for their roles in a bogus lottery scam that targeted elderly victims around the country, 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; the South Carolina three defendants are the first to be sentenced.  Brown and Bellamy had previously entered guilty pleas in July, 2014, and Yapp in September.  United States District Judge R. Bryan Harwell, of Florence, citing the devastating impact on the more than 150 victims of the scam, imposed prison terms of 78 months for Bellamy, 41 months for Brown, and 27 months for Yapp.  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: T. DeWayne Pearson (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Brian Morin, age 47 of Greenville, SC, was sentenced in connection with theft of government funds in violation of Title 18, United States Code, Section 641.  Morin was convicted in connection with the theft of grant funds administered to Morin’s former company, Innegrity LLC. According to facts presented during the guilty plea hearing, Morin was awarded a research grant from the National Science Foundation. As a grant condition, Morin was responsible for submitting grant reports certifying the hours that the company worked on grant related activities. An investigation revealed that the company’s internal records did not match the hours Morin certified to the National Science Foundation. Morin was sentenced to three years’ probation and a fine of $5,000.

National Science Foundation Inspector General Allison Lerner said, “This individual significantly inflated the amount of time and effort he and other company personnel spent on a Small Business Innovation Research Program award so that he could continue to fraudulently receive National Science Foundation funds intended to conduct innovative research.  The strong support of the U.S. Attorney’s office was instrumental in leading to today’s sentencing, which can serve as a deterrent to anyone who seeks to lie to obtain scarce research dollars”. The case was prosecuted by Assistant United States Attorneys T. DeWayne Pearson of the Columbia office and Jamie Lea Schoen of the Greenville office.

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Contact Person: Bill Day (803) 929-3000

Columbia, South Carolina---- United States Attorney Bill Nettles stated that James O'Neal Arthur, Jr., age 57, of North Augusta, South Carolina was sentenced in federal court in Columbia, South Carolina, for Possession of Child Pornography, a violation of 18 U.S.C. § 2252S(a)(5)(B).  United States District Judge J. Michelle Childs of Columbia sentenced Arthur to 10 years imprisonment, Restitution of $66,000.00 to be paid to the victims, to be followed by Supervised Release for life during which time Arthur will be required to register as a sex offender.

Evidence presented at the change of plea hearing established that an internet audit by Authur’s employer on April 1, 2014 detected inappropriate activity. The audit revealed Arthur had been visiting inappropriate websites so Arthur was sent home while a review was conducted. While at home Arthur contacted co-employees in an effort to get them to hide laptop computers and hard drives he had in his office. A forensic examination of the material found in his office uncovered thousands of images of young females engaged in sexually suggestive/explicit conduct.  Further investigation revealed that Arthur had been producing child pornography videos for years from pictures he had taken of pre-teens and teens.

The case was investigated by agents of the U.S. Department of Energy, Office of Inspector General, Office of Investigations.  Assistant United States Attorney William E. Day II of the Columbia 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 Person: Bill Day (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Austin Lee, age 21, of Dallas, Georgia; Morris O. Mega, age 31, of Smyrna, Georgia; and Edward N. Pope, age 24, of Roswell, Georgia each have entered a guilty plea in federal court in Columbia, to conspiracy to manufacture, possess and pass counterfeit currency, a violation of 18 U.S.C. § 371.  United States District Judge J. Michelle Childs of Columbia accepted the guilty pleas and will impose sentence after she has reviewed the presentence reports which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that Lee, Mega and Pope and another individual manufactured counterfeit $20 Federal Reserve Notes in Dallas, Georgia, in October 2013, then travelled to North Augusta, S.C.  Along the way they passed the counterfeit at various restaurants. Once in North Augusta, Lee purchased an I-pad at a Walmart using $500.00 in counterfeit $20's. The defendants then travelled to Lexington, S.C., where Lee was arrested trying to purchase another I-Pad at another Walmart. The investigation revealed that the defendants had passed 107 counterfeit notes in 6 states resulting in losses of more than $6,000.00.

Mr. Nettles stated the maximum penalty for conspiracy to manufacture, possess and pass counterfeit currency is imprisonment for 5 years and/or a fine of $250,000.

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

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Contact Person: Bill Day (803) 929-3000

Columbia, South Carolina---- United States Attorney Bill Nettles stated that Gerald W. Costner, age 71, of Fort Lawn, South Carolina has been sentenced in federal court in Columbia, South Carolina, for theft of government funds, a violation of 18 U.S.C. § 641.  Chief United States District Judge Terry L. Wooten of Columbia sentenced Costner to five months imprisonment and ordered  him to pay restitution of $92,925.00.

Evidence presented at the change of plea hearing established that Costner obtained Social Security Administration (SSA) benefits by collecting his roommate’s benefits from June 1992 until January 2014, after his roommate died. Costner failed to notify the SSA of the death and collected $92,925.00 in fraudulent Social Security Benefits.

The case was investigated by agents of the Office of Inspector General, Social Security Administration.  Assistant United States Attorney William E. Day II of the Columbia office prosecuted the case.        

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Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Helen Jean Anderson, age 57, of Anderson, South Carolina, pled guilty today in federal court in Greenville, to conspiracy to commit mail fraud, a violation of Title 18, United States Code, Section 1349.  Senior United States District Henry M. Herlong, Jr. of Greenville accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.

The evidence at the change of plea hearing established that Anderson and various co-conspirators would obtain the means of identification of other individuals and then file fraudulent tax returns.  Once the Treasury checks arrived, the co-conspirators sought ways to negotiate the checks. An eye-witness at a convenience store in the upstate told law enforcement that Helen Anderson had recently been in the store and claimed to have 200 Treasury checks to cash and said that she would pay $500 per check to cash them.  The eye-witness contacted the police.

On August 6, 2013, a confidential informant working with United States Postal Inspectors was wired for audio and video and met with Helen Anderson.  Anderson gave the informant multiple Treasury checks to cash.  Anderson instructed the informant to bring her the money from the cashing of the checks within 2 days.  She told the informant that she might have more Treasury checks available to cash once the informant returned the money to her. 

In order to hide her ties to the Treasury checks, Anderson paid co-conspirators to allow her to use their addresses so checks and other tax documents would be sent to those addresses and would not obviously be associated with Anderson. 

Law enforcement estimates that Anderson and her co-conspirators negotiated $483,294.40 in Treasury checks derived from fraudulent returns.

Mr. Nettles stated the maximum penalty Anderson 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 Internal Revenue Service, the United States Postal Inspection Service, and the Anderson County Sheriff’s Office.  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 there will be a sentencing hearing Monday (February 23, 2015) in United States v. Warren Dominique McDaniel.  The hearing will be held at 2:30 pm on Monday, February 23, 2015, before United States District Judge Michelle Childs (Courtroom # 2) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.

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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 has entered a guilty plea in federal court. Majeed plead guilty 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 accepted the plea and will impose a sentence after she has reviewed the presentence report, which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that beginning 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.

Mr. Nettles stated that Majeed, who has a prior felony drug conviction from Louisiana for possession with intent to distribute marijuana, faces a statutory mandatory minimum sentence of ten (10) years imprisonment with a maximum of life, a fine of $8,000,000, and a term of supervised release of at least eight (8) years following the term of imprisonment.

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: Stacey Haynes (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that DeMario Ontrey Ware, age 26, of Rock Hill, South Carolina pled guilty today in federal court. Ware pled guilty to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e). Senior United States District Judge Cameron McGowan Currie accepted the plea and will impose a 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 on the morning of May 22, 2014, officers with the Rock Hill Police Department Violent Crimes Unit were patrolling when they noticed Ware, a known gang member, on the front porch of a residence on Hickory Lane. Officers knew that Ware had an outstanding warrant for his arrest, so they approached him and placed him under arrest for that warrant. Officers located a loaded Bryco .380 caliber handgun in Ware’s front pocket while searching him incident to his arrest. Ware is prohibited under federal law from possessing firearms and/or ammunition based upon his prior federal conviction for armed bank robbery and his prior state convictions for discharging a firearm into a dwelling and criminal conspiracy to commit assault and battery 1st degree.

Mr. Nettles stated that Ware faces a statutory maximum sentence of ten (10) years, a fine of $250,000 and a term of supervised release of up to three (3) years following the term of imprisonment. However, if Ware were found to have three (3) prior violent felony convictions and/or serious drug convictions, he would be deemed an armed career criminal under federal law and face a statutory mandatory minimum of fifteen (15) years imprisonment with a maximum of life, a fine of $250,000 and a term of supervised release of up to five (5) years following the term of imprisonment.

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

Contact Person: Lance Crick (864) 282-2100

GREENVILLE, South Carolina ---- The United States Attorney's Office is sponsoring its 12th Annual Project Sentry Logo Contest. The statewide contest allows students an opportunity to design logos on school safety, gun violence awareness and prevention, and submit their illustrations for upcoming Project Sentry publications. The contest is open to any student (elementary, middle, or high school age) in South Carolina. Entries will be divided into four grade categories. A winner will be selected from each of the four grade categories and will each receive a $50.00 cash award. The overall winning logo, which will be chosen from among the four grade division category winners, will receive an additional $50.00 cash award (for a total of $100.00), and will be featured in Project Sentry publications. The awards are sponsored by the South Carolina Law Enforcement Officers Association (SCLEOA).

Entries should be consistent with the theme "Preventing Gun Violence at Your School." The deadline for submissions is Friday, April 3, 2015. Contest information has been distributed to schools throughout South Carolina. Therefore, if your child or student is interested in participating, contact your school and/or local law enforcement agency as contest information has been provided to them as well. Additionally, if your child?s school is not participating in the contest, your child may still submit an entry. Application and contest rules may be found on our website at: http://www.justice.gov/usao-sc/programs/ceasefire/project-sentry/contest-winners

Project Sentry, which is part of the district?s Project Safe Neighborhoods/Project Cease Fire 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.

Contact Person: Bill Day (803) 929-3000

Contact: Jim May (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated that on Tuesday Charles Henry Ross, age 29, of San Diego, California was sentenced to 180 months and 25 years of supervised release for a violation of 18 U.S.C. § 2423(b), traveling in interstate commerce with the intent to have illicit sexual contact with a minor. United States District Judge Terry L. Wooten of Columbia imposed the sentenced.

Evidence presented at the change of plea hearing established that the defendant, Charles Henry Ross, traveled from California to South Carolina for the purpose of having a sexual relationship with a 15 year old in Lexington County. Ross had been communicating with the 15 year old for several months before he purchased a ticket and flew to South Carolina. The 15 year-old boy’s parents found Ross at their home, then notified Lexington County Sheriff’s Department. In imposing the sentence Judge Wooten agreed with the Government and the defense that the crime was very serious and warranted an upward departure of 3 levels of the sentencing guideline, arriving at the agreed upon 180 month sentence.

Mr. Nettles stated the case showed the cooperation between the United States Attorney’s Office, Lexington County Sheriff’s Department, the FBI and the South Carolina Attorney General’s Office in the identification and prosecution of sexual predators.

The United States Attorney’s Office prosecuted the case in conjunction with the South Carolina Attorney General’s Office. The case was investigated by agents of the FBI and the Lexington County Sheriff's Department. Assistant United States Attorney James (Jim) Hunter May of the Columbia prosecuted the case.
 

Contact Person: Nathan Williams (843) 727-4381

Columbia, South Carolina ----United States Attorney Bill Nettles stated today that Dorothy Lee Barnett, a/k/a Alexandria Maria Canton, a/k/a Alexandria Maria Geldenhuys, age 53, of Queensland, Australia, formerly of Isle of Palms, South Carolina, pled guilty to one count of International Parental Kidnapping and two counts of False Statement in a Passport Application. Sentencing occurred immediately after the guilty plea, where Barnett was sentenced to twenty-one months imprisonment, to be followed by two years supervised release.

Facts at the plea hearing established that Barnett removed her infant child from the United States in 1994, obstructing the parental rights of the child’s father. Prior to fleeing the United States, Barnett assumed a false identity, which she maintained until the time of her arrest. Barnett was able to obtain a false passport, using the false identity, which she utilized to flee the United States. The false statements she made in order to obtain and renew the passport were the basis for her two passport fraud convictions. Barnett was located by FBI agents in early 2012, and extradited to the United States in September, 2014.

Barnett’s plea was heard, and sentence was imposed, by United States District Court Judge Richard M. Gergel. The International Parental Kidnapping count carried up to three years imprisonment under 18 U.S.C. § 1204 and each of the False Statement charges carried up to ten years imprisonment under 18 U.S.C. § 1542.

The convictions are the result of an investigation conducted by the Federal Bureau of Investigation, United States Department of State and the Australian Federal Police. Assistant United States Attorney Nathan Williams of the Charleston office prosecuted the case. The Department of Justice’s Office of International Affairs provided significant assistance.

Contact Person: Beth Drake (803)929-3000

Greenville, South Carolina ----United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following: Foreign Nationals Charged with Illegal Re-entry
Evaristo Sanchez-Lozano, Margarito Pascual-Magana, and Abner Diaz-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 two 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.

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: Charleston Man Indicted for Investment Fraud
Robert C. Jordan, age 64, of Charleston, South Carolina, was charged in a 6-count Indictment for Wire Fraud and Making a False Statement on a Loan Application, a violation of 18 U.S.C. §§ 1343 and 1014. The maximum penalty that Jordan could receive is 30 years imprisonment and a maximum fine of $1 million. 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.

St. Stephen Man Indicted for Theft of Government
Jerome Ravenell, age 58, of St. Stephen, South Carolina was charged in a 1-count Indictment for Theft of Government Property, a violation of 18 U. S. C. § 641. The maximum penalty that Ravenell 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.

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.

Contact Person: A. Bradley Parham (843) 727-4381

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Charlotte McLaughlin was sentenced in federal court in Florence, South Carolina, for Bribery, a violation of 18 U.S.C. § 201(b)(2)(C). United States District Judge R. Bryan Harwell of Florence sentenced McLaughlin to 13 months imprisonment and 3 years supervised release.

Evidence presented at the guilty plea hearing established that in 2012 and 2013, McLaughlin, who was a Federal Correctional Officer at the time, accepted bribes from inmates and their associates in exchange for which she brought contraband, tobacco and cellphones, to inmates at the Federal Correctional Institution in Bennettsville.

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

Contact Person: Beth Drake (803) 929-3000

Charleston, South Carolina ---- A plea and sentencing hearing has been scheduled in connection with United States v. Dorothy Barnett, a case involving International Parental Kidnapping and False Statements in a Passport Application. United States District Court Judge Richard M. Gergel will preside over the proceedings as indicated below.

Contact Person: Stacey Haynes (803) 929-3000

Columbia, South Carolina ---- The United States Attorney’s Office stated today that the Fourth Circuit Court of Appeals issued an unpublished opinion today affirming the federal conviction of Michael Juan Smith, age 22, of Columbia, South Carolina. The written opinion may be found at http://www.ca4.uscourts.gov/opinions/daily-opinions. Smith was sentenced to the maximum sentence of 120 months (10 years) imprisonment for the federal charge of being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Smith pled guilty on February 19, 2014. United States District Judge Joseph F. Anderson, Jr. imposed the maximum sentence on June 20, 2014, which will be followed by three (3) years of federal supervised release.

Contact Person: Nick Bianchi (843) 727-4381

Columbia, South Carolina ---- United States Attorney Bill Nettles stated that Hadden Andre Smith was sentenced today in federal court in Charleston, South Carolina, for conspiracy to possess with intent to distribute cocaine and marijuana, a violation of 21 U.S.C. § 841; possession of firearms in furtherance of a drug trafficking crime, a violation of 18 U.S.C. § 924(c); and conspiracy to launder money, a violation of 18 U.S.C. § 1956. United States District Judge David C. Norton of Charleston sentenced Smith to 12 years imprisonment to be followed by 4 year supervised release. Smith also agreed to forfeit over $248,000 that authorities seized from his residence.

Evidence presented at the change of plea hearing established that on July 31, 2012, upon executing a search warrant at Smith's residence, Berkeley County Sheriff's Office Deputies found approximately $248,000 cash, 1.8 kilograms of marijuana, two firearms and drug packaging paraphernalia. Further investigation by the Internal Revenue Service Criminal Investigations Division revealed that Smith used drug proceeds to purchase several vehicles, while having the vehicle titles put in the name of third parties.

IRS-CI Special Agent In Charge Thomas J. Holloman stated, “The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations. IRS Criminal Investigation is committed to taking the profit away from the drug traffickers and putting those individuals in jail.”

The case was investigated by agents of the Internal Revenue Service Criminal Investigations Division, Drug Enforcement Administration and Berkeley County Sheriff's Office. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.

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

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Albert Dickson, age 61, of Red Bank, New Jersey, has entered a guilty plea in federal court in Charleston, to Making a False Statement Under the Clean Water Act, a violation of 33 U.S.C. § 1319(c)(4).  United States District Judge Patrick Michael Duffy of Charleston accepted the guilty plea and will sentence Dickson at a later date.

Evidence presented at the change of plea hearing established that Albert Dickson was the project manager overseeing renovations of the L. Mendel River Federal Building in Charleston in the spring and early summer of 2011.  SC DHEC inspectors visited the site in June and noticed asbestos violations, including sweeping asbestos-containing materials down open drains.  When questioned, Dickson indicated that a filtration system had been in place at the time of the inspections.  Evidence indicated that it had not been installed until after June 6, 2011, when the violations were observed.

Mr. Nettles stated the maximum penalty for Making a False Statement Under the Clean Water Act is imprisonment for 2 years and/or a fine of $10,000.

United States Attorney Bill Nettles stated, “I am particularly pleased that we held accountable an individual who valued this particular project above the health and safety of the citizens of Charleston.  We hope this guilty plea serves as a reminder that, where environmental violations are found, they will be punished.”

The case was investigated by agents of the United States Environmental Protection Agency and the South Carolina Department of Health and Environmental Control.  Assistant United States Attorney Winston David Holliday, Jr. of the Columbia office is prosecuting the case.

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Contact Person: Nathan Williams (843) 727-4381

Charleston, South Carolina ---- United States Attorney William N. Nettles stated today that Leonard Riley III, age 32, of Charleston was convicted following a three day jury trial in federal court for his role in a bank robbery. Evidence presented during the trial established that Riley, along with a co-defendant, conspired to commit, and committed, a series of armed robberies that included a liquor store and three banks, in both the Charleston and Georgetown area, in late 2013 and early 2014. The last of the robberies occurred at the Citizen’s Bank in Georgetown, SC, on March 3, 2014. Using surveillance video from the bank, and information gathered from previous robberies, Georgetown Police Department Detectives were able to apprehend both defendants within hours of the Citizen’s bank robbery. At the time of arrest Detectives recovered money stolen from the robbery, some of the clothes worn during the robbery, and the guns used during the robbery, from the car defendants were driving. Riley’s co-defendant Ryan Bonneau, age 47, of Charleston, pled guilty prior to trial, and explained to the jury that, prior to the Citizen’s bank, he and Riley had robbed banks in both Charleston and Georgetown, as well as a liquor store in North Charleston, SC.

Riley was convicted of Conspiring to Commit Armed Bank Robbery (18 U.S.C. §371), Armed Bank Robbery (18 U.S.C. §2113) and Possession of a Firearm in Furtherance of a Crime of Violence (18 U.S.C. §924(c)). The Bank Robbery charge carries up to twenty five years imprisonment, the Conspiracy up to five years, and the Firearm charge carries a mandatory minimum five year consecutive sentence. United States District Court Judge David C. Norton oversaw the trial, and will impose sentence for both defendants at a later date.

The convictions were the result of an investigation conducted by the Georgetown Police Department, Federal Bureau of Investigation and Charleston Police Department. Assistant United States Attorneys Nathan Williams and Emmanuel Ferguson of the Charleston office prosecuted the case.

Contact Person: Beth Drake (803) 929-3000

Charleston, South Carolina ---- An Initial Appearance has been scheduled in connection with United States v. Dorothy Barnett, a case involving International Parental Kidnapping and False Statements in a Passport Application.  United States Magistrate Judge Bristow Marchant will preside over the proceedings as indicated below.

Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Gregory D. Megilligan, age 50, of Greenville, was sentenced today in federal court in Greenville, for conspiracy to distribute oxycodone, a violation of Title 21, United States Code, Section 846. Senior United States District Judge Henry M. Herlong, Jr., of Greenville sentenced Megilligan to 72 months imprisonment.

Evidence presented at the change of plea hearing established that Megilligan was in league with Lance Tew, Jessica Hollingsworth, and Ginger Merritt. These three co-conspirator have already been sentenced (Tew was sentenced to 100 months, Hollingsworth to 48 months, and Merritt to 60 months). The four involved in the prescription ring created fraudulent scripts for oxycodone and recruited individuals to pass the prescriptions at various pharmacies in the upstate of South Carolina and in western North Carolina.

The criminal activity was discovered when, on January 15, 2013, Jessica Hollingsworth was arrested in a CVS pharmacy in York County for attempting to pass a fraudulent prescription for oxycodone. Lance Tew was the person who drove her to the pharmacy in a rental car. Both Tew and Hollingsworth were arrested. The car war towed and an inventory search conducted. Police found cash, pills, fake ids, blank prescriptions, and fraudulent prescriptions. Further investigation revealed that the conspirators were passing at least one fraudulent prescription per day. The conspirators recruited many individuals to pass the prescriptions and generally paid the prescription passers 30 pills for their efforts. Merritt, having good computer skills, was the primary manufacturer of the fraudulent prescriptions. Megillian assisted with recruitment and the passing of various prescriptions.

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.

Contact Person: Will Lucius (864) 282-2100
 

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that NANCY MARIE STEIN, age 62, of Anderson, South Carolina , was sentenced by Senior United States District Judge Henry M. Herlong today in federal court in Greenville, to a total of 73 months in prison for six counts of violating Title 18, United States Code, Section 1344, commonly referred to as bank fraud; and 60 months for one count of violating Title 42, United States Code, Section 6928(d)(2)(A), for storing hazardous wastes without a permit. The sentences were ordered to run concurrently for a total sentence of 73 months.  STEIN was also ordered to pay restitution in the amount of $17, 692, 974.00.  STEIN’s Company, AMERICAN SREW AND RIVER CORPORATION (ASR) of Anderson, was placed on probation for 5 years and ordered also to pay restitution for its involvement in the bank fraud and storing hazardous wastes without a permit.

Both STEIN and ASR entered pleas of guilty to the charges on December 16, 2013.  The case had originally been set for sentencing on July 15, 2014, but was continued due to issues raised by STEIN.

During the guilty plea hearing in December of 2013, the factual presentation revealed that had the cases had gone to trial, the Government would have presented evidence indicating that from at least 2004 and continuing until in 2011, while operating ASR, STEIN developed a scheme to defraud a number of financial institutions.  As part of the ruse, STEIN created a number of fictitious manufacturing companies, organizations and business associations with apparent legitimate addresses, bank accounts and telephone numbers in various locations throughout the Southeast and the Midwest including Alabama, Georgia, Indiana, Ohio, and Pennsylvania.  The addresses were mail drops, STEIN controlled the accounts, and the telephone numbers were answering services.  One of the fictitious entities was an accounting firm which issued audits and financial statements attesting to the fiscal soundness of ASR.

STEIN would then apply to various financial institutions for loans for ASR.  Often she would present to the institutions false invoices indicating that ASR had purchased types of specialized machinery from the fictitious vendors which could be used as collateral for loans.  Often, STEIN would have the financial institutions forward the loan proceeds to the non-existent vendors’ accounts.   The deception also involved removing legitimate identity plates on existing machinery at the ASR location and replacing them with false plates reflecting the serial numbers of the fictitious machines.

After a number of years of running the scheme, STEIN’s and ASR’s debts continued to grow, and ultimately, ASR’s creditors forced the company into involuntary bankruptcy in 2011.  Thereafter, the United States Secret Service was asked to investigate.  At least twenty six victim financial institutions were identified with cumulative losses in excess of $16 million.  When the investigation focused on STEIN, in a statement to the Secret Service, she admitted what she had done and took full responsibility for the fraud.

Resident Agent in Charge of the Greenville, S.C. Office of the United States Secret Service, Thomas M. Griffin, stated:   “Today's sentencing was the result of a criminal investigation which was initiated in 2010. The Secret Service utilized significant resources conducting interviews, reviewing bank records and other documents associated with the fraudulent loans obtained by these defendants. These investigative efforts have ensured that the defendants would be successfully brought to justice for the crimes which they committed.”

With respect to the environmental crime violation, the Government was prepared to show that some years prior to the involuntary bankruptcy, STEIN and ASR had been informed that they needed a permit from the South Carolina Department of Health and Environmental Control (DHEC) or from the United States Environmental Protection Agency (EPA) to store the large quantities of hazardous wastes generated by ASR’s manufacturing process.  No permit to store hazardous waste was ever sought by STEIN or ASR or issued by EPA or DHEC.

In June, 2011, as a result of a DHEC search of ASR’s property, a large quantity of hazardous waste was discovered on site.  Thereafter, more than 24,000 gallons of waste were removed from the sight and disposed of by EPA at a cost of approximately $1,720,000.00. 

“For a number of years, the defendants stockpiled thousands of gallons of unpermitted hazardous waste at ASR’s location in Anderson,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in South Carolina.   “This waste consisted of uncontained flammable and highly corrosive materials which were exposed to the elements. Today’s sentencing shows that those who refuse to comply with the law, putting public health and the environment at risk, will face the consequences in court.” 

The cases were investigated by agents of the United States Secret Service,  the Criminal Investigative Division of the United States Environmental Protection Agency, and prosecuted by Assistant United States Attorney William C. Lucius of Greenville.

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Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Shrerod Terry, age 37, and Akram H. Muhammad, age 37, both of Atlanta, Georgia, were sentenced today in federal court in Greenville, for conspiracy to negotiate counterfeit checks, a violation of Title 18, United States Code, Section 371. Senior United States District Judge Henry M. Herlong of Greenville imposed a 15-month sentence for Terry and a 24-month sentence for Muhammad. He ordered the men to pay over $23,000 in restitution.

Evidence from the change of plea hearing established that Terry and Muhammad traveled from Atlanta, Georgia, to Greenville. The men went to “Tent City,” a known location in Greenville for homeless people. Terry and Muhammad proceeded to recruit homeless people to cash counterfeit checks for them. Terry and Muhammad would provide the homeless recruits with clean clothes, a place to wash up, and then would take them to various banks to negotiate the counterfeit checks. The activities of the duo were first discovered by deputies with the Greenville County Sheriff’s Office when conducting a traffic stop. A K-9 alerted on the vehicle and a small quantity of marijuana was discovered during a search. While looking for additional drugs, deputies discovered counterfeit checks and called Inspectors from the U.S. Postal Inspection Service for assistance. Law enforcement estimates that Terry and Muhammad used homeless people to cash $23,159.56 in counterfeit checks before they were apprehended.

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

Contact Person: Rhett DeHart (843) 727-4381

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Angel Masdeu, age 52, of Estill, SC was sentenced in federal court in Charleston, South Carolina, for aggravated identify theft, a violation of Title 18, United States Code, Section 1028A. United States District Judge Richard M. Gergel of Charleston sentenced Masdeu to 24 months imprisonment and one year of supervised release.

Evidence presented in this case established that Masdeu stole the identifying information of individuals, and using this stolen identifying information, he filed fraudulent tax returns that claimed false tax refunds. After a thorough investigation, the IRS determined that Masdeu’s identify theft caused more than $260,000 in loss to the United States Treasury due to fraudulent tax refunds.

“Investigating refund fraud and identity theft is a top priority of IRS Criminal Investigation,” said IRS-CI Special Agent in Charge Thomas J. Holloman III. “Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today’s sentencing should serve as a strong warning to those considering similar conduct. Law enforcement and the US Attorney’s Office will vigorously pursue these crimes and will hold those accountable who would defraud the government.”

The case was investigated by agents of the IRS-Criminal Investigative Division. Assistant United States Attorney Rhett DeHart of the Charleston office prosecuted the case.

Contact Person: Bill Nettles (803) 929-3000

WASHINGTON ---- The former Executive Director of International Adoption Guides Inc. (IAG), an adoption agency, pleaded guilty yesterday to making false and fraudulent statements to the Council on Accreditation with respect to IAG’s accreditation.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Bill Nettles of the District of South Carolina made the announcement.

Mary Mooney, 57, of Belmont, North Carolina, admitted as part of her guilty plea that she made false statements to the Council on Accreditation (COA), which granted IAG accreditation to provide adoption services in certain countries. IAG marketed itself as a COA-accredited adoption services provider and numerous clients relied on IAG’s accreditation to confirm that IAG’s adoption services were ethical and in compliance with U.S. and foreign law. Mooney admitted that in support of IAG’s application for accreditation she made several false representations, including: falsely stating that IAG was in substantial compliance with the relevant regulations; intentionally failing to list her co-defendant, Alisa Bivens, as one of IAG’s employees providing adoption services; and intentionally failing to disclose that James Harding, another co-defendant, was the functional director and head of the company. All of these false and fraudulent statements were material to COA’s decision to accredit IAG to conduct intercountry adoptions for purposes of the Hague Convention on the Protection of Children and Cooperation in Respect of Intercountry Adoptions. Without that accreditation, IAG would not have been legally permitted to facilitate intercountry adoptions from any country that was a party to that convention and numerous families would have never retained IAG to provide adoption services.

Mooney is the third defendant to plead guilty as a result of this investigation. Mooney pleaded guilty before Senior U.S. District Court Judge Sol Blatt Jr. of the District of South Carolina. A sentencing hearing will be scheduled at a later date.

This ongoing investigation is being conducted by the Bureau of Diplomatic Security. The department appreciates the assistance of the Office of Children’s Issues at the U.S. Department of State. The case is being prosecuted by Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamie Lea Schoen of the District of South Carolina.

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15-049

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

Contact Person: Bill Nettles (803) 929-3000

Dr. Baron S. Nason, Robert T. Hamilton and Nason Medical

Settle Allegations of Fraud for $1,021,778.26

Columbia, South Carolina ---- United States Attorney Bill Nettles announced today that the United States Attorney's Office for the District of South Carolina, settled claims of health care fraud with Nason Medical, out of Charleston, South Carolina, and two of its owners, Dr. Baron S. Nason and Robert T. Hamilton. The United States contended that Nason Medical submitted numerous false claims to Medicare, Medicaid and TRICARE. Specifically, the United States contended that Nason Medical:
 

The investigation began with the filing of whistleblower lawsuits, called qui tams, under the False Claims Act. The suits were filed by former employees of Nason Medical. The False Claims Act allows the government to recover actual damages and penalties of three times the actual damages and up to $11,000 per false claim. This settlement includes repayment of actual damages and penalties.

The False Claims Act allows individuals to file lawsuits with allegations that fraud has been committed against the federal government on behalf of the government. Whistleblowers, referred to as Relators in the False Claims Act, are entitled to share in any recovery received by the government. In this case, the two relators collectively will receive 18% of the funds of the settlement, or $183,920.08, plus they are entitled to their costs and attorney fees. One whistleblower claimed he was terminated for his actions taken to stop the fraudulent billing. If that is true, he is entitled to recover for his personal damages as well.

Mr. Nettles said, ?Health care fraud is a very high priority in this office. We have shifted our office resources by trebling the number of attorneys dedicated to address civil fraud cases. This case is particularly egregious because it involves allegations of profiting by exposing patients to unnecessary radiation in the CT scans.?

“Being a health care provider in Federal health care programs such as Medicare and Medicaid is a privilege, not a right. When health care providers order medically unnecessary procedures such as CT scans and submit other improper claims just to boost profits, they threaten both the health of their patients and the financial integrity of the Medicare and Medicaid programs,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General (OIG). ​“In an effort to ensure Nason Medical’s egregious billing history is not its future, the company agreed to a rigorous 5-year Corporate Integrity Agreement (CIA) we crafted to hold them accountable.”

Under this CIA, except for X-rays, Nason Medical also agreed to remove all its imaging equipment (including CT scans) and to provide medical services only appropriate for an Urgent Care Center. To that end, Nason Medical may not present or advertise itself out as providing any medical services for emergencies. Nason Medical is required to take down its Emergency signage and to stop advertising for emergency services. And, to ensure its compliance with federal healthcare programs and this CIA, Nason Medical, among other requirements, must engage the services of an independent monitor, chosen by OIG.
This case was investigated by agents from U.S. Health and Human Resources Office of Inspector General, Defense Criminal Investigative Service and the Federal Bureau Investigation.

If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at HHSTips@oig.hhs.gov.

Contact Person: Beth Drake (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following: Anderson County Resident Indicted for Possession of Child Pornograph
David D. Survilas, age 46, of Walhalla, South Carolina, was charged in a 1-count Indictment with possession of child pornography. The maximum penalty Survilas could receive is not more than twenty (20) years imprisonment and a fine of $250,000.00. This 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.

Foreign Nationals Charged with Illegal Re-entry
Jorge Hernandez-Morales, Nestor Perez-Antonio, Gerson David Ordonez-Irias, Ramon Alvarez-Ornelas, and Francisco Martinez-Sebastian 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 U.S. Immigration and Customs Enforcement (ICE) agents and are assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.

Individual Indicted for Failure to Register as a Sex Offender
Paul Edward Philson, Jr., was charged in a 1-count Indictment with failure to register as a sex offender, a violation of Title 18, United States Code, Section 2250. The maximum penalty Philson could receive is ten years imprisonment. The case was investigated by agents of the United States Marshals Service and is 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.

Contact: (202) 514-2007

Washington ---- The former International Program Director of International Adoption Guides Inc. (IAG), an adoption agency, pleaded guilty today to conspiring with others to defraud the United States by submitting fraudulent documents to the State Department for adoptions from Ethiopia and paying bribes to foreign officials.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Bill Nettles of the District of South Carolina made the announcement.

James Harding, 55, of Atlanta, Georgia, admitted as part of his guilty plea that, between 2008 and 2009, he and his co-conspirators submitted fraudulent documents to the State Department to facilitate adoptions of Ethiopian children by U.S. parents.  Harding admitted that, in support of U.S. visa applications for the Ethiopian children, he and others submitted false documentation, including contracts of adoption signed by orphanages that could not properly give the children up for adoption because, for example, the child in question was never cared for or never resided at the orphanage.

In entering his guilty plea, Harding also admitted that he and others paid bribes to two Ethiopian officials so that those officials would help with the fraudulent adoptions.  Specifically, Harding admitted that an audiologist and teacher at a government school was given money and other valuables in exchange for non-public medical information and social history information for potential adoptees.  Additionally, Harding and his co-conspirators provided cash and all-expense paid travel to the head of a regional ministry for women’s and children’s affairs in exchange for his approval of IAG’s applications for intercountry adoptions and ignoring IAG’s failure to maintain a properly licensed adoption facility. 

Harding pleaded guilty before Senior U.S. District Court Judge Sol Blatt Jr. of the District of South Carolina, and a sentencing hearing will be scheduled at a later date.

This ongoing investigation is being conducted by the Bureau of Diplomatic Security.  The department appreciates the assistance of the Office of Children’s Issues at the U.S. Department of State.  The case is being prosecuted by Trial Attorney John W. Borchert of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jamie Lea Schoen of the District of South Carolina.

Contact Person: Beth Drake (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that a Federal Grand Jury in Columbia, South Carolina, returned Indictment(s) against the following: Florence Woman Indicted for Bank Fraud
Tamara Leigh Taylor, of Florence, South Carolina was charged with Bank Fraud in a 1-count indictment. The maximum penalty Taylor could receive is 30 years. The case was investigated by agents of the Secret Service and is assigned to Assistant United States Attorney William E. Day, II of the Columbia office for prosecution.

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

Contact Person: Beth Drake (803) 929-3000

Charleston, South Carolina ---- United States Attorney Bill Nettles stated today that Chief United States District Judge Terry L. Wooten will hold a change of plea hearing in the case of United States v. James R. Metts, Case No. 3:14-cr-429.
 

Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ----United States Attorney Bill Nettles stated today that Cassandra Kendall Wilson, age 66, of Woodruff, South Carolina, and Timothy L. Wilson, age 60, of Martin, Tennessee, were sentenced today in federal court in Greenville for their involvement in a conspiracy to obstruct justice, a violation of Title 18, United States Code, Section 371.  United States District Judge J. Michelle Childs of Greenville imposed a period of 9 months of home confinement, 1 year of probation, a community service requirement (200 hours for Timothy and 225 hours for Cassandra), and a curfew on both defendants.  In passing sentence, Judge Childs granted a motion from the Government to depart downward because of substantial assistance in the prosecution and investigation of Ronnie Gene Wilson.

Evidence presented at the change of plea hearing established that in late 2011 and early 2012, agents with Secret Service and state law enforcement officers began to investigate Atlantic Bullion and Coin and Ronnie Gene Wilson.  It was discovered that Wilson operated what is generally described as a “Ponzi scheme.”  In April 2012, Wilson confessed to operating the Ponzi. 

On April 27, 2012, the United States District Court—with the consent of Wilson and the Government—appointed a Federal Receiver.  The Court’s Order directed the Receiver to take immediate possession of all property, assets and estates owned, controlled, used, or in the possession of Wilson. 

During the course of the investigation, the Secret Service talked with Wilson on multiple occasions.  On or about September 20, 2012, agents interviewed Wilson about possible hidden assets and cash.  Wilson was adamant that there were no hidden assets or cash.  He stated that he had turned everything over to the Government. 

On November 13, 2012 the District Court ordered Wilson to pay approximately $57 million in restitution to the 798 victims of the Ponzi Scheme. He was sentenced to 235 months in prison.

In April 2014, the Government recovered approximately $164,300.  This money had been hidden in an ammunition can.  Ron Wilson gave this money to Timothy L. Wilson member to keep for Ron Wilson so he would have something if he was ever released from the Bureau of Prisons. 

The evening before Ron Wilson was sentenced in November 2012, evidence established that Ron Wilson visited the hotel room of Timothy L. Wilson in Greenville and gave him $7000 in cash in an envelope.

In March 2014, Secret Service and the Receiver recovered another ammunition can of money ($172,859).  Ron Wilson had given this canister to Cassandra K. Wilson prior to his sentencing hearing.    

The case was investigated by agents of the United States Secret Service.  Assistant United States Attorney Bill Watkins of the Greenville office handled the case.

Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ----United States Attorney Bill Nettles stated  that Webster Douglas Williams, III, age 56, of Myrtle Beach, South Carolina was sentenced in federal court in Florence, South Carolina, for Sexual Exploitation of a Minor, a violation of 18 U.S.C. § 2251(a) and (e), Travel With Intent to Engage in Illicit Sexual Conduct, a violation of 18 U.S.C. § 2423(b), and Possession of Child Pornography, a violation of 18 U.S.C. § 2252A(a)(5)(B).  United States District Judge R. Bryan Harwell of Florence sentenced Williams to 327 months imprisonment to be followed by Supervised Release for life during which Williams is required to register as a Sex Offender, attend Sexual Offender Treatment and submit to polygraph examinations. Williams was also ordered to pay restitution of $487,350.00 to his victims.

Evidence presented at the change of plea hearing established that Williams was employed by the Myrtle Beach Fire Department before he retired.  Williams produced child pornography for six years by filming his activities with the children he was molesting. He also took children to Florida in 2009 and engaged in sexual activities with one of the children. When Williams’ house was searched by the Horry County Police Department in November 2011 more than 1 million images of child pornography were found in the form of pictures and videos on computers and elsewhere. Hidden cameras, computers, and other material used by Williams in producing and collecting the child pornography were also found and seized. 

The case was investigated by agents of the Horry County Police Department and the Federal Bureau of Investigation.  Assistant United States Attorney William E. Day II of the Columbia 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.

Contact Person: Beth Drake (803) 929-3000

Charleston, South Carolina ---- Bill Nettles, the United States Attorney for the District of South Carolina; John S. Comer, the acting Special Agent in Charge of the Atlanta Division of the Drug Enforcement Administration (“DEA”); Mark Keel, the Chief of the South Carolina Law Enforcement Division (“SLED”); and Gregory Mullen, the Chief of Police for the City of Charleston, SC announce the indictment and arrests of defendants in a drug trafficking enterprise.  As specified in unsealed indictments, the defendants allegedly conspired to distribute more than 100 grams heroin and more than 500 grams of methamphetamine in South Carolina and elsewhere.

The listed defendants were arrested, arraigned or are in custody based on the indictment:
 

Over 6,000 grams of methamphetamine and over 350 grams of heroin were seized in the investigation.  Approximately $25,000 in alleged drug proceeds were also seized.  The indictment resulted from an Organized Crime Drug Enforcement Task Force investigation involving DEA Charleston Task Force, DEA Greenville Resident Office, SLED, Charleston Police Department, South Carolina Highway Patrol, Spartanburg County Sheriff’s Office, and Anderson County Sheriff’s Office. 

"These arrests are the result of extensive coordination and investigation between federal, state and local law enforcement officials.  Through their hard work, we have been able to remove significant quantities of drugs from the streets and apprehend a number of individuals involved in bringing those drugs into our district,” said United States Attorney Bill Nettles. The mission of DEA is unwavering--we combat drug traffickers by investigating and prosecuting those who distribute illicit drugs which causes immeasurable damage to our communities. Today's enforcement activity is a perfect example of how the law enforcement community works together to remove such criminals from the streets,” said Acting Special Agent in Charge John S. Comer of the DEA Atlanta Field Division.

The DEA Charleston Task Force is comprised of Special Agents and Task Force Officers from DEA, Berkeley County Sheriff’s Office, Charleston County Sheriff’s Office, Charleston Police Department, Dorchester County Sheriff’s Office, Hampton County Sheriff’s Office, North Charleston Police Department, Mount Pleasant Police Department, South Carolina Highway Patrol, South Carolina Law Enforcement Division, and Summerville Police Department.

Prosecution of the investigation is led by Assistant United States Attorney Nick Bianchi of the United States Attorney’s Office in Charleston, SC. 

The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.