District of South Carolina

December 16, 2014

Contact Person: Beth Drake (803) 929-3000

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

WHEN: WHERE:

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

Contact Person: DeWayne Pearson (803) 929-3000

Columbia, South Carolina ----United States Attorney Bill Nettles stated today that James Autry “Audi” Clemens, age 60 of Johnston, SC, Larry Baker, age 64 of Cameron, SC and Steven Crandall, age 59 of Salisbury, NC were sentenced for their connection to a scheme to defraud Shaw Air Force Base through various construction contracts. Clemens was also sentenced for an additional count of money laundering. According to facts presented during the guilty plea hearing, the men inflated costs of construction projects by submitting invoices that falsely claimed that additional workers and resources were used to complete construction jobs on the base. The men would then split the fraudulent payments between themselves. Clemens received a sentence of 48 months of incarceration, Baker received a sentence of 15 months and Crandall received 5 months.

“These conspirators took funds away from the warfighter,” stated Special Agent in Charge John F. Khin with the Defense Criminal Investigative Service (DCIS), Southeast Field Office.  “The DCIS remains committed to investigating and bringing to justice those individuals who attempt to manipulate the procurement process for their own gain.”

“Mr. Clemens guilty plea is significant in sending a message that while fraud involving government contracts may be initially lucrative, nothing lasts forever and the consequences are serious.” “We and our law enforcement partners will work continuously to uncover this type of criminal activity.” Said Thomas J. Holloman III, Special Agent in Charge, IRS Criminal Investigation. The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.

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: Nichols Man indicted for Solicitation to Commit a Hobbs Act Armed Robbery
David Lawrence Wallace, Jr., was charged in a 1-count Indictment with Solicitation to Commit Hobbs Act Armed Robbery, a violation of Title 18, United States Code, Section 373.  The maximum penalty Wallace could receive is 10 years imprisonment.  The case was investigated by agents of the Federal Bureau of Investigations and is assigned to Special Assistant United States Attorney M. Derrick McClellan 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.

Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ----United States Attorney Bill Nettles stated today that Kenneth D. Griffin, Jr., age 34, of Spartanburg, was sentenced today in federal court in Greenville, to possession of child pornography, a violation of Title 18, United States Code, Section 2255A.  Senior United States District Judge Henry M. Herlong, Jr. of Greenville sentenced Griffin to 88 months imprisonment and ordered him placed on supervised release for life.

Evidence presented at the change of plea hearing established that AOL provided information that an individual in Spartanburg County was sending e-mails containing images of child pornography.  The FBI performed an investigation and traced the e-mail account and physical address connected to the messages to Griffin’s home.

The FBI obtained a search warrant for this address and executed it on April 10, 2013.  A computer was seized.   A forensic exam of the computer revealed hundreds of images of child pornography.  After the seizure Defendant met with the FBI and admitted that he had been seeking child pornography using chat rooms on Yahoo. 

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

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

Contact Person: DeWayne Pearson (803) 929-3000

Lancaster, South Carolina ----United States Attorney Bill Nettles stated thatAisha J. Craig, age 35, and Ebony N. Eddie, age 34, both of Lancaster, were sentenced in Federal Court for their involvement in a scheme to submit fraudulent tax returns to the Internal Revenue Service. According to facts presented in court, Craig and Eddie used stolen identities to receive over $100,000 in fraudulent tax returns. Both women entered guilty pleas to charges of presenting false claims to the United States in violation of Title 18, United States Code, Section 286, and aggravated identity theft, a violation of Title 18 United States Code, Section 1028A. Craig was sentenced to 48 months and Eddie was sentenced to 54 months imprisonment for their roles in the scheme. 

“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’s 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 assigned to Assistant United States Attorney T. DeWayne Pearson of the Columbia office for prosecution.

Contact Person: DeWayne Pearson (803) 929-3000

Columbia, South Carolina ----William N. Nettles, United States Attorney for the District of South Carolina announced that Arthur Fleming Moler, age 51, of Gaston, was found guilty after a jury trial of trafficking in counterfeit goods, smuggling illegal medications and theft of government services. 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 2 million dollars’ worth of counterfeit erectile dysfunction medications. Sentencing in the case has not yet been scheduled but Moler faces a possible sentence of 20 years imprisonment and a fine of $2,000,000.

The case was investigated by the Department of Homeland Security - Immigration and Customs Enforcement and the United States Postal Service and was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.

Contact Person: Stacey Haynes (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Kirstie Elaine Philome Barratt, age 22, of Fort Mill, South Carolina was sentenced to 24 months imprisonment today after earlier pleading guilty to making a false statement to a federal agent, in violation of Title 18, United States Code, Section 1001.  United States District Judge Joseph F. Anderson, Jr. imposed the term of imprisonment, which will be followed by a 3 year term of supervised release. In October, Barratt plead straight up to the charge without a plea agreement.  Barratt also may face deportation as a result of her guilty plea.  During the sentencing hearing, Judge Anderson granted the government’s motion for an upward departure from the federal guidelines sentencing range of 0 to 6 months, noting that this was a “rare” case and that Barratt “knowingly placed a law enforcement officer’s life in jeopardy” by her false statement.

Evidence presented at the earlier change of plea hearing established that during the early morning hours of January 7, 2014, deputized task force agents with the Federal Bureau of Investigation’s (FBI) Charlotte Safe Streets Task Force/Violent Crime Apprehension Team were in Fort Mill, South Carolina searching for a subject (hereinafter “Subject”) who was wanted for an armed robbery of a restaurant in North Carolina.  Agents, in police attire and accompanied by York County Sheriff’s Department officers in marked units, approached the residence of the Subject’s girlfriend, Barratt, in an attempt to determine if the Subject was in the residence.  After approximately 15 minutes of the agents knocking on the door and announcing their presence with a loud speaker, Barratt came to the door.  Barratt, who was advised by agents that it was a crime to make a false statement to federal agents, told the agents that her boyfriend was not in the home, that she had not seen him for two (2) months because they had broken up, and that the only other persons in the residence were her parents.  Barratt gave the agents consent to search the residence.  Upon completing a sweep of the residence, agents located Barratt’s parents asleep in one upstairs bedroom and noticed the door shut to another upstairs bedroom.  Agents could hear a dog barking in that other upstairs bedroom, so they asked Barratt to secure the dog so they could search the bedroom. Barratt went into the bedroom and came out with the dog, but did not tell agents that Subject was in the room armed with a firearm.  Agents then went into the bedroom and found the Subject crouched in the corner with his firearm drawn.  Gunfire ensued and an FBI task force agent, as well as the Subject, were shot.  Both Barratt and the Subject were taken into custody.  Barratt later advised agents that she knew her boyfriend was in the residence, that she thought he was going to hide, and that when she entered the bedroom to retrieve the dog, she saw him with the firearm, but did not tell the agents before allowing them to enter the bedroom. 

The case was investigated by the FBI, the York County Sheriff’s Department, and the South Carolina Law Enforcement Division (SLED), 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: Beth Drake (803) 929-3000

Columbia, South Carolina ---- United States Attorney’s Office announces today that there will be a sentencing hearing Monday (December 15, 2014) in United States v. Kirstie Barratt.  The hearing will be held at 10:30 am on December 15, 2014, before United States District Judge Joseph F. Anderson, Jr. (courtroom # 4) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.

Contact Person: William E. Day II (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Shana Marie Lawson, age 36, was sentenced in federal court in Columbia, South Carolina, for failure to register as a sex offender, a violation of 18 U.S.C. § 2250(a).  Chief United States District Judge J. Michelle Childs of Columbia sentenced Lawson to 15 months to be followed by 5 years supervised release .

Evidence presented at the change of plea hearing established that Lawson was sentenced in Virginia for "Travel with Intent to Engage in Sexual Act with a Minor." After serving her sentence in Florida, Lawson moved to California and registered as a sex offender, but then moved to Lancaster, South Carolina, without registering. Investigation revealed that she had been living with someone she met in prison and that person’s family.

The case was investigated by agents of the U.S. Marshal.  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: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Ronnie Gene Wilson, age 67, of the Coleman Federal Corrections Institution in Sumterville, Florida, was sentenced today in federal court in Greenville for his 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 six-month sentence to be served in addition to the 235 months Wilson is now serving for defrauding almost 800 investors.  Thus, in total, Wilson is sentenced to 241 months for fraud-related activities.

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 a family member to keep for 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 a family member in Greenville and gave the family member $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 money to another family member prior to sentencing. 

Cassandra Kendall Wilson, age 66, of Woodruff, South Carolina, and Timothy L. Wilson, age 60, of Martin, Tennessee, are both charged in the indictment and have entered pleas of guilty.  They will be sentenced at a later date.  

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: Beth Drake (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Andrew Stephen Jackson, age 44, of Florence, South Carolina was sentenced in federal court in Florence, for possession of child pornography, a violation of 18 U.S.C. § 2252A(a)(5)(B) and (b)(2) by  United States District Judge R. Bryan Harwell of Florence.  Jackson was sentenced to ten years imprisonment to be followed by Supervised Release for Life, during which time Jackson will be required to: register as a sex offender, submit to polygraph examinations, submit to electronic monitoring and receive counseling. Jackson was also ordered to pay $150,000 in restitution to his victims.

Evidence presented at the change of plea hearing established that Jackson traded child pornography with an individual in Australia in October 2010. A search warrant was executed at Jackson's residence and thousands of images of child pornography were found on Jackson's computers.

The case was investigated by agents of the FBI.  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 Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.

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: Abbeville County Resident Indicted for Distribution of Child Pornography
Kenneth Mark Brooks, age 53, of Donalds, South Carolina, was charged in a 2-count Indictment with distributing child pornography.  The penalty Brooks could receive for each count is not less than five (5) years and not more than twenty (20) years imprisonment and a maximum 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
Celerino Santaana-Soriano and Andres Francisco 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
Billy Owens Orsini 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 he 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.

Greenville Resident Charged with Making Counterfeit Money
Lowman Leon Jamison, II, age 27, of Greenville, South Carolina, was charged in a 3-Count Indictment with making and selling counterfeit U.S. currency, a violation of Title 18, United States Code, Sections 471 and 473.  The maximum penalty he could receive is twenty years imprisonment.  The case was investigated by agents of the United States Secret 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 Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Bobby Mosley, Sr., age 63, of Townville, South Carolina; J. Michael Caldwell, age 42, of Williamston, South Carolina; and Frontier Software Systems, LLC, pled guilty today in federal court in Greenville.  Mosley pled guilty to operating an illegal gambling business in violation of 18 U.S.C. § 1995; Caldwell pled guilty to serving as an accessory after the fact to transportation of gambling machines in interstate commerce in violation of 18 U.S.C. § 3; and Frontier Software Systems, LLC, pled guilty to a money laundering conspiracy in violation of 18 U.S.C. § 1956(h).      United States District Judge Bruce Howe Hendricks of Greenville accepted the guilty pleas from all three defendants and entered an order of forfeiture whereby the defendants agree to forfeit $20 million to the United States that was derived from criminal activities. 

According to the plea agreements and other documents filed in the case, in addition to the three convictions and $20 million forfeiture, the gambling business must move its headquarters out of the District of South Carolina and is banned from engaging in software design, development, or shipment of gambling machines or software in or from the District of South Carolina.  The plea agreements recommend probationary sentences for the Defendants and the dismissal of the remaining corporate defendants. 

The evidence presented at the change of plea hearing established that Bobby Mosley, Sr. owned a gambling business that was headquartered in Piedmont, South Carolina. In October 2013, federal search and seizure warrants were executed where agents seized several hundred gambling machines and other evidence.  South Carolina Code Section 12-12-2710 prohibits the possession of gambling machines in the state of South Carolina.   Three hundred and sixteen of the machines seized were “old-fashioned” or “stand-alone” video-poker-type gambling machines.  The machines are constructed so that a customer inserted cash directly into the machine, chose the amount of the bet, and watched the electronic simulation of slot machine reels. Once the customer finished playing, and, if the customer won, the machine printed a slip of paper that the customer took to the cashier.  The cashier paid the customer in cash.  Mosley’s gambling business then split its winnings with the gambling parlor where the machine was operated. Caldwell assisted Mosley in moving these illegal machines in interstate commerce. 

Frontier Software Systems, LLC, and others combined to conduct a series of financial and monetary transactions involving the proceeds from the illegal gambling business. Operators of gambling establishments that used Frontier’s software would pay a percentage of the operational net revenue from the gambling activity.  Frontier would then use this money to further the gambling business by purchasing, for example, gambling equipment and/or cabinetry through vendors. 

The case was investigated by agents of the United States Secret Service, Internal Revenue Service, and various state and local law enforcement agencies.  Assistant United States Attorney Bill Watkins and Max Cauthen of the Greenville office handled the case.

Contact Person: Beth Drake (803) 929-3000

Columbia, South Carolina ---- Today United States Attorney Bill Nettles filed an Information charging Huger resident John Nick, age 59, with Money Laundering in violation of 18 U.S.C. §1956 .  The Information alleges that in 2010, Nick took payment of $40,000 in cash from an individual, who claimed to be a drug dealer, to purchase a new car and then covered up the transaction by titling the car in the name of a nominee to make it appear as if the car was purchased with an $8,500 cash down payment and the balance financed.

The case was investigated by Special Agents with the Internal Revenue Service, Criminal Investigation.  Assistant United States Attorney Eric Klumb is prosecuting the case.

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

Contact: (202) 514-2007

WASHINGTON— Attorney General Eric Holder on Friday touted the Justice Department’s release of new guidance to law enforcement, which he said would help officers maintain public safety while safeguarding constitutional rights.  The guidance was issued by the department’s Bureau of Justice Assistance and Office of Community Oriented Policing Services.

“The Justice Department encourages law enforcement officials, in every jurisdiction, to work with the communities they serve to minimize needless confrontation,” the Attorney General said in a video posted on the department’s website.  “It is vital to engage in planning and preparation, from evaluating protocols and training to choosing the appropriate equipment and uniforms.  This is the hard work that is necessary to preserve the peace and maintain the public trust at all times—particularly in moments of heightened community tension.”

The complete text of the Attorney General’s video message is below: “At the United States Department of Justice, we are committed to ensuring that our local law enforcement partners have the resources they need to effectively serve and protect all members of their communities, particularly when citizens exercise their constitutionally protected rights.  To that end, the Bureau of Justice Assistance and the Office of Community Oriented Policing Services are providing new guidance to law enforcement officers about how to approach maintaining order during First Amendment-protected events.  This comprehensive new guide compiles information, tools, and best practices that will help law enforcement officers maintain public safety while safeguarding constitutional rights.

“As we’ve seen, durable relationships between the police and their communities do not develop overnight.  But as someone who has spent a career at all levels of law enforcement—and as the brother of a retired police officer—I know the importance of these outreach efforts to ensuring effective neighborhood policing, officer safety, and community health.  The Justice Department encourages law enforcement officials, in every jurisdiction, to work with the communities they serve to minimize needless confrontation.  It is vital to engage in planning and preparation, from evaluating protocols and training to choosing the appropriate equipment and uniforms.  This is the hard work that is necessary to preserve the peace and maintain the public trust at all times—particularly in moments of heightened community tension.

“Over the past few months, we’ve seen demonstrations and protests that have sought to bring attention to real and significant underlying issues involving police practices, implicit bias, and pervasive community distrust.  And in most cases, these demonstrations have been both meaningful and responsible, and have brought vital issues to the attention of the public at large.  Similarly, the vast majority of law enforcement officers have honorably defended their fellow citizens engaged in these peaceful protests.

“I know, from first-hand experience, that demonstrations like these have the potential to spark a sustained and positive national dialogue, to provide momentum to a necessary conversation, and to bring about critical reform. 

“But history has also shown us that the most successful and enduring movements for change are those that adhere to non-aggression and nonviolence.  And so I ask all those who seek to lend their voice to important causes and discussions, and who seek to elevate these vital conversations, to do so in a way that respects the gravity of their subject matter.  Peaceful protest has been a hallmark, and a legacy, of past movements for change, from patriotic women who demanded access to the franchise, to the civil rights pioneers who marched for equal rights and equal justice.  Americans exercising their First Amendment right to free assembly should look to those examples as they work to bring about real and lasting change for themselves and for future generations.

“Of course, I recognize that progress will not come easily, and long-simmering tensions will not be cooled overnight.  These struggles go to the heart of who we are, and who we aspire to be, both as a nation and as a people—and it is clear that we have a great deal of important work to do.  But as we move forward, the Department of Justice—and I personally—will continue to work with law enforcement and communities throughout the country to help build the more perfect Union—and the more just society—that all Americans deserve.”

The full video of the Attorney General’s message is available at http://www.justice.gov/opa/video/maintaining-public-safety-while-safeguarding-constitutional-rights.

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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: Nathan Williams (843) 727-4381

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Edward Clinton Jones III, age 42, of Charleston, was sentenced to 151 months imprisonment for Use of Interstate Commerce Facilities in the Commission of Murder for Hire, 18 U.S.C. § 1958(a), and Solicitation of Murder for Hire, 18 U.S.C. § 373. 

Jones pled guilty to the offenses on August 29, 2014.  Facts set forth at his guilty plea and sentencing established that Jones solicited an individual to have his wife murdered so that Jones could collect the insurance proceeds from her death.  This individual then went to the police, and an undercover officer was introduced to Jones.  Jones then discussed details of having his wife killed with the undercover officer, and provided the undercover officer with a picture of his wife so they could properly identify her.  Jones also discussed where his wife could be located, the type of vehicle she drove, where the murder could best be committed, and how he would divide the life insurance money with those he recruited to commit the murder. 

Jones was sentenced by United States District Judge Richard M. Gergel.  The convictions and sentences are the result of an investigation conducted by the City of Charleston Police Department and the Federal Bureau of Investigations.  Assistant United States Attorney Nathan Williams of the Charleston office prosecuted the case.

Contact Person: Beth Drake (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated that his office has filed  an Information charging Yvondia “Susan” Young, age 57, with Bank Fraud in violation of 18 U.S.C. §1344 .  The Information alleges that from 2007 to 2013, Young embezzled approximately $325,000 from her employer, the Heritage Trust Federal Credit Union, by issuing official credit union checks to make payments on her credit card bills. 

The case was investigated by Special Agents with the Federal Bureau of Investigation.  Assistant United States Attorney Eric Klumb is prosecuting the case.

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

Contact Person: DeWayne Pearson (803) 929-3000

Columbia, South Carolina ---- Brian Morin, age 47 of Greenville, SC, entered a guilty plea to theft of government funds in violation of Title 18, United States Code, Section 641 in connection with a grant 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. Sentencing has not yet been scheduled, and Morin faces a maximum penalty of one year imprisonment and a fine of $5,000.

“The Small Business Innovation Research Program sets aside funds to support small companies that conduct innovative research.  This plea stresses the importance of maintaining and reporting accurate time and effort expended on Federal grants, and sends a strong message to those who provide false information to the Federal Government. I commend the U.S. Attorney’s office for its strong support in this case” said Allison Lerner, the National Science Foundation Inspector General. The case was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.

Contact Person: Nathan Williams (843) 727-4381

Columbia, South Carolina ---- United States Attorney William N. Nettles stated today that GenPhar Inc. and Vaxima Inc. were convicted on Friday, November 14, 2013 following a ten day trial in Federal Court.  The jury did not reach a verdict on Jian Yun Dong, aka John Dong, and a mistrial was declared regarding his charges. 

All three defendants were charged with Conspiracy to Commit Grant Fraud, Wire Fraud, Theft of Government Property and Providing False Statements.  GenPhar and Vaxima were each convicted of one count of Theft of Government Property.  GenPhar was convicted of an additional seventeen counts of Wire Fraud, and Vaxima was convicted of an additional sixteen counts of Wire Fraud.  The jury did not reach a verdict on the Conspiracy count as to any defendant, on any counts against defendant Jian Dong, and one count of Wire Fraud.  A mistrial was declared on those counts, and a hearing date regarding them has yet to be set.

The trial began on November 5, 2014, and concluded on November 14, 2014.  Testimony at trial established that federal grant money was obtained by GenPhar and Vaxima for purposes of biodefense research, but was used for other purposes, specifically to construct a commercial office building.  Testimony further established that a total of approximately six million dollars were spent on the construction, which included approximately four million dollars of improperly diverted grant money.  

The Hon. C. Weston Houck presided over the trial.  The convictions are the result of an investigation conducted by the Department of Health and Human Services  Office of Inspector General, the Defense Criminal Investigative Service, the Federal Bureau of Investigation, and the U.S. Army Criminal Investigation Command.  Assistant United States Attorneys Eric Klumb and Nathan Williams of the Charleston office prosecuted the case.

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, pled guilty today in federal court in Greenville, to conspiracy to obstruct justice, a violation of Title 18, United States Code, Section 371.  United States District Judge J. Michelle Childs of Greenville accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that 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.

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

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

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: Piedmont Resident Indicted for Conspiring to Steal Mail
Emily D. Keller, age 34, of Piedmont, South Carolina, was charged in a 1-count Indictment with conspiracy to steal mail and possess stolen mail; a violation of Title 18, United States Code, Section 371.  The maximum penalty Keller could receive is five (5) years imprisonment and a maximum fine of $250,000.00.  The case was investigated by agents of the United States Postal Inspection Service and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.

Spartanburg Woman Charged with Embezzlement
Michelle P. Posey, age 43, of Spartanburg, South Carolina, was charged in a 1-count Indictment with embezzlement by a bank employee, a violation of Title 18, United States Code, Section 656.  The maximum penalty Posey could receive is thirty (30) years imprisonment and a fine of $1,000,000.  The case was investigated by agents of the Federal Bureau of Investigation and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.

Individual Indicted for Transporting Illegal Aliens
Adrian Flores was charged in a 4-count Indictment with transportation of illegal aliens, a violation of Title 8, United States Code, Section 1324.  The maximum penalty he could receive is ten years imprisonment.  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 Max Cauthen of the Greenville office for prosecution.

Foreign Nationals Charged with Illegal Re-entry
Erlis Antonio Pineda, Magnolio Diaz-Lopez, and Roberto Montiel-Vasquez 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) Homeland Security Investigations (HSI) special agents and are assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.

Anderson Resident Charged with Possession of Counterfeit Money
Ivan Stanislavovich Nechitaylo, age 27, of Anderson, South Carolina, was charged in an Indictment with possession of counterfeit U.S. currency, a violation of Title 18, United States Code, Section 472.  The maximum penalty he could receive is twenty years imprisonment.  This case was investigated by agents of the United States Secret Service and is assigned to Assistant United States Attorney Max Cauthen of the Greenville office for prosecution.

Individual Indicted for Social Security Fraud
Juana Padron-Padron was charged in an Indictment with social security fraud, a violation of Title 42, United States Code, Section 408.  The maximum penalty he could receive is five years imprisonment.  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 Max Cauthen of the Greenville office for prosecution.

Florida Men Charged with Aggravated Identity Theft
Steve Bryan Rojas, age 25, of Pembroke Pines, Florida, and Steven Rives, age 30, of Miami, Florida, were charged in a 2-count Indictment with conspiracy to use an unauthorized access device, in violation of Title 18, United States Code, Section 1029(b)(2); and aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).  The maximum penalty each could receive is five years imprisonment for the conspiracy charge and two years consecutive imprisonment for the identity theft charge.  This case was investigated by agents of 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.

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: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Walter T. Alexander, age 31, of Travelers Rest, South Carolina, was sentenced yesterday to 151 months imprisonment and placed on life-time supervised release for possession of child pornography. United States District Judge Timothy M. Cain presided over the case.

Evidence presented at the change of plea hearing established that law enforcement began an investigation of Alexander after learning that an e-mail address associated with him had uploaded an image file containing child porn.  The file was uploaded on October 10, 2012.  A state law enforcement officer reviewed the upload and concluded that it did indeed contain child porn.  Further investigation traced the IP address connected to the e-mail account to Alexander’s residence. 

On April 22, 2013, law enforcement executed a search warrant on Alexander’s residence.  They seized his computer and conducted a forensic examination of it.  Approximately 90 child porn videos and 170 still images were found-- that is, images and videos of minors under the age of 18 engaged in sexually explicit conduct and the lascivious display of the genitals.  Some of the minors had not attained the age of 12 and were prepubescent.  Law enforcement also discovered requests Alexander had made via the internet for women with small children to contact him for sexual activity. 

The case was investigated by agents of the Department of Homeland Security, Office of Investigations, and the State Law Enforcement Division.  Assistant United States Attorney Bill Watkins of the Greenville office handled the case. 

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

Contact Person: Jim May (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Charles Henry Ross, age 28, of San Diego, California has entered a guilty plea in federal court in Columbia, to the travel in interstate commerce with the intent to have illicit sexual contact with a minor, a violation of 18 U.S.C. § 2423(b).  United States District Judge Terry L. Wooten of Columbia accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that the defendant, Charles Henry Ross, traveled from California to South Carolina to carry on a sexual relationship with a 15 year old. 

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 dangerous criminals.

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 is prosecuting the case.

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: Interstate Transportation of Stolen Merchandise
Sharon Donetta Fennell, age 46, of Lake City, South Carolina was charged in a 1-count indictment with transporting stolen merchandise in interstate commerce through the U.S. Postal Service, in violation of Title 18, U. S. C. §2314.  The maximum penalty Fennell could receive is 10 years imprisonment and a maximum fine of $250,000.00.  The case was investigated by agents of the United States Postal Inspection Service and Florence County Sheriff's Office and is assigned to Assistant United States Attorney A. Bradley Parham 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.

Contact Person: Max Cauthen (864) 282-2100

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Damien  Wade  Conley, age 33, of Chesnee, South Carolina was sentenced today in federal court in Spartanburg, South Carolina, for AIMING A LASER POINTER AT AN AIRCRAFT, a violation of 18 U.S.C. § 39A.  United States District Judge Mary Geiger Lewis of Spartanburg sentenced Conley to thirty-seven months in federal prison.

Evidence presented at the change of plea hearing established that on November 20, 2013, Conley recklessly aimed the beam of a laser pointer at two news helicopters as they were flying to cover an accident on the interstate.  The beam from the laser pointer struck each helicopter and invaded the cockpit.

The inherent danger in pointing a laser into the cockpit of an aircraft is that the pilot can be temporarily blinded by the laser light and can become disoriented while trying to continue operating the aircraft. Such an act can interfere with the safe operation of an aircraft and poses significant risk of accident and injury.

The case was investigated by agents of the FBI.  Assistant United States Attorney Max Cauthen of the Greenville office prosecuted 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 46, of Church Hill, Tennessee and formally of Florence, South Carolina, has entered a guilty plea in federal court in Florence, to Theft of Government Funds , a violation of 18 U.S.C. § 641.  Additionally, Gibson, Jr. entered a guilty plea to Identity Theft, in violation of 18 U.S.C § 1028A(a)(1).  United States District Judge R. Bryan Harwell of Florence accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.

Evidence presented at the change of plea hearing established that 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 Utah. Gibson's fraud caused losses of $365,000 to the VA and of $350,000 to the SSA. Gibson also used another person’s identity to purchase automobiles in South Carolina and Tennessee.

Mr. Nettles stated the maximum penalty for Theft of Government Funds is imprisonment for 10 years and/or a fine of $250,000, and the maximum penalty for Identity Theft is imprisonment for 2 years consecutive  and/or a fine of $250,000.

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.

Contact: (202) 514-2007

WASHINGTON – Eric Walters, 39, and Franklin Brown, 35, formerly police officers with the City of Marion Police Department, in South Carolina, pleaded guilty yesterday in federal court to using excessive force against a woman with mental disabilities on April 2, 2013, the Justice Department announced today.

Walters and Brown each pleaded guilty to one count of deprivation of rights under color of law for using unreasonable force for their role in repeatedly tasing the victim when she posed no threat to either officer.  Walters and Brown pleaded before U.S. District Court Judge Bryan Harwell in federal court in Florence, South Carolina.

According to the information and facts presented in court, in the course of detaining the victim, Walters tased the victim causing her to fall to the ground and injure her head.  Once 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.  In court, 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 Acting Assistant Attorney General Vanita Gupta for the Civil Rights Division.  “The Justice Department will continue to vigorously prosecute those who cross the line to engage in acts of criminal misconduct.”  

“Law enforcement officers are entrusted with the state’s police powers to maintain and restore order,” said U.S. Attorney Bill Nettles for the District of South Carolina.  “In this case, the officers abused that authority, and purposefully hurt the victim who at the time posed no threat to these officers or anyone else.  No just society can tolerate this sort of abuse by those who wear the badge.  I’d like to thank the Federal Bureau of Investigations, the South Carolina Law Enforcement Division, the Department of Justice Civil Rights Division and the team in my office who worked together to ensure that these officers were held accountable for their misdeeds.”

Sentencing will be scheduled at a later date.  Walters and Brown face statutory maximum penalties of 10 year sentences in prison and $250,000 fines.

The case was investigated by the Columbia Division of the FBI and is being prosecuted by Assistant U.S. Attorney John Potterfield of the District of South Carolina and Trial Attorneys Nicholas Murphy and Henry Leventis of the Civil Rights Division.

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

Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Michael L. Wolfenbarger, age 42, of Spartanburg, South Carolina, was sentenced today in federal court in Anderson, South Carolina, for wire fraud, a violation of 18 U.S.C. ? 1343.  United States District Judge Timothy M. Cain sentenced Wolfenbarger to 37 months imprisonment and ordered him to pay $1.3 million in restitution.

Evidence presented at the change of plea hearing established that Wolfenbarger acted as the middleman between various automotive dealerships and private individuals in the purchase and sale of used vehicles.  Wolfenbarger utilized bank accounts at Branch Banking & Trust Company and The Palmetto Bank in his business affairs.  Wolfenbarger would write checks drawn on bank accounts with insufficient funds or create counterfeit instruments and deposit these checks into other accounts. The pattern of depositing insufficient funds (“NSF”) checks and counterfeit instruments resulted in the books and records of the Banks showing inflated balances that permitted these NSF checks or counterfeit instruments to be honored rather than returned unpaid. Wolfenbarger would then withdraw monies from the Banks and/or write checks for goods and services based on inflated balances and thus take advantage of the time required for a check deposited in one bank to be physically presented for payment at the bank on which it was drawn.  It was further part of the scheme and artifice to defraud that Wolfenbarger, rather than remitting funds to the automotive dealerships once a used vehicle had been sold, would deposit these funds in accounts with the Banks in an effort to perpetuate the kite and cover bad checks that he had written.  Through this scheme an artifice, the victims lost approximately $1.3 million.

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

Contact Person: Andrew Moorman (864) 282-2100

Columbia, South Carolina ---- United States Attorney Bill Nettles announced today that Juan Manuel Hernandez, age 39, and Arturo Mendez-Gomez, age 27, pled guilty to Conspiring to Interfere with Interstate Commerce by Robbery and two counts of Brandishing, Carrying, Using, and Possessing a Firearm in Furtherance of a Crime of Violence.  The Government’s evidence indicated that beginning at least on December 7, 2013, and ending on February 21, 2014, Hernandez and Mendez-Gomez, both citizens of Mexico, worked together to rob Hispanic grocery stores operating in the Upstate of South Carolina and western North Carolina.  Typically, Mendez-Gomez would enter the store first and distract the clerk.  Hernandez would then enter the store, walk around the counter, and point a semi-automatic pistol at the clerk, demanding money.  After the clerk complied with the demand, Hernandez and Mendez-Gomez would tie up the clerk in the rear of the store and make their getaway.  The investigation culminated on February 20, 2014, when law enforcement spotted a getaway car the two men had used in some of the robberies.  On February 25, 2014, law enforcement arrested Mendez-Gomez while conducting surveillance on the getaway car.  Hernandez fled, but was later apprehended in Columbus, Ohio.  Pursuant to their guilty pleas, Hernandez and Mendez-Gomez face a minimum of 32 years in prison and a maximum of life imprisonment.

U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Greenville County Sheriff’s Office, the Spartanburg County Sheriff’s Office, the Greenwood County Sheriff’s Office, the Laurens County Sheriff’s Office, and the Henderson County, North Carolina, Sheriff’s Office investigated the case.  Andy Moorman with the U.S. Attorney’s Office is the prosecutor assigned to the case.

Contact Person: Barbara Bowens (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles, District of South Carolina  announced today that Assistant United States Attorneys (AUSA)  Barbara M. Bowens and John Potterfield will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections.  AUSAs Bowens and Potterfield have been appointed to serve as the District Election Officers (DEO) for the District of  South Carolina , and in that capacity, they are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.

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

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

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

The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Nettles stated that AUSAs Bowens and Potterfield will be on duty in this District while the polls are open.  They can be reached by the public at the following telephone numbers: (803) 929-3052 and (803) 929-3092.  

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  Special Agent Christopher Garrett of the  local FBI field office  has been appointed for election duty and can be reached by the public at  (803) 214-5630.

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

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

Contact Person: JD Rowell (803) 929-3000

Columbia, South Carolina ---- Twenty four (24) defendants made initial appearances in Federal Court today on Indictments charging them with conspiracy to traffic cocaine/crack cocaine and money laundering offenses based on those defendants supplying local street gangs with illegal drugs.  The defendants were arrested over the past two days by members of the Columbia Violent Gangs Task Force.  The investigation began in early 2013, and has continued up through the arrests yesterday and today.

U.S. Attorney Bill Nettles said, “The aim of the Violent Gangs Task Force is to take the criminal network out of operation – from the top supplier to the street corner operative - and in so doing hand the streets back over to the law-abiding citizens.  These kinds of cases take time to build and FBI Special Agent Dave Thomas and I want to thank the law enforcement agencies that worked to put the case together, particularly the City of Columbia Police Department, Richland County Sheriff’s Department and the South Carolina Law Enforcement Division, for the time put in.”

Federal Bureau of Investigation Special Agent in Charge David Thomas stated, “Dismantling violent gangs is a continuing priority for the FBI.  We share a long commitment with our law enforcement partners to address the dangerous threat facing our communities today.  The arrests demonstrate our focus and determination to strike at gang related enterprises and to eliminate the terror these groups inflict on our neighborhoods.”

This case is being investigated by the Columbia Violent Gangs Task Force (CVGTF), led by agents with the Federal Bureau of Investigation.  The CVGTF is part of the FBI’s Safe Streets Task Force initiative. The CVGTF is an investigative and enforcement partnership between the FBI, Richland County Sheriff’s Department (RCSD), Columbia Police Department (CPD), and the South Carolina Law Enforcement Division (SLED).

Archie Indictment

Alexander Indictment

Contact Person: Jane Taylor (803) 929-3000

Columbia, South Carolina ---- At the request of the U.S. Attorney’s Office for the District of South Carolina (USASC) and the Federal Bureau of Investigation (FBI), the ASPCA® (American Society for the Prevention of Cruelty to Animals) is assisting with a federal operation involving drugs and dog fighting in and around the Columbia, S.C. area.

In early 2013, as a result of community complaints, the FBI’s Columbia Violent Gang Task Force (CVGTF) – comprised of agents of the FBI, the Columbia Police Department, the Richland County Sheriff’s Office, South Carolina Law Enforcement Division (SLED) and the South Carolina National Guard -- initiated an investigation into the drug activity occurring in and around a downtown Columbia neighborhood.  Agents obtained evidence about a drug organization that was allegedly peddling cocaine and crack cocaine in the area, and that were also engaged in robberies and other acts of violence.  During the course of the investigation, agents learned that the individual who supplied cocaine to the organization was also involved in purchasing, breeding, and fighting dogs.

A search warrant was executed Friday during which agents seized a dozen dogs from a property in Gaston, SC.  Upon arriving at the scene, ASPCA responders found dogs exhibiting scars and injuries commonly associated with dog fighting. The dogs were found chained and anchored to car axles, with trash barrels being used as makeshift shelters.  Adult dogs and puppies were found severely emaciated and dehydrated, and the remains of deceased dogs were also discovered on the premises, along with dog fighting paraphernalia.  This was the second warrant executed on this property this month. 

On October 1, agents searched the residence of the alleged drug supplier for evidence of his involvement in drug trafficking and dog fighting.   At that time, agents seized 35 dogs, along with drugs, guns, and cash.  The Lexington County Animal Shelter provided daily care for the seized dogs until the ASPCA was able to transport those dogs to a temporary shelter in an undisclosed location.  The ASPCA managed the removal and transport of dogs involved in the investigation, and will continue to oversee forensic evidence collection, as well as the dogs’ veterinary care and sheltering.

Columbia Police Chief Skip Holbrook, who has made it a priority to protect innocent citizens of Columbia from gangs and gang activity, said, “It should come as no surprise that gangs, drug dealing, and violence often go hand in hand.  However, gangs are often involved in other organized criminal activity.  In this case, that criminal activity is dog fighting.”

“Organized dog fighting is a highly lucrative and brutal crime where dogs are forced to fight often to their death,” said Tim Rickey, vice president of ASPCA Field Investigations and Response. “The truth is that dog fighting happens all over the country, but it’s an underground activity that goes mostly unnoticed by the public. Dog fighting is often linked to other illegal activities including drugs and gambling, and we’re pleased to work alongside state, federal and local law enforcement agencies in ending these dogs’ suffering and seeing justice served.”

On October 21, a federal grand jury returned an Indictment charging Eric Dean Smith, 41, of Gaston, and seven others in a conspiracy to traffic cocaine and crack cocaine.  The others charged were Gerald Montez Burris, 46, Amos Donnell Jones, 34, Stephoni Vernard Sumter, 28, Tony L. Gunter, 36, Travis Santale Sulton, 31, Dion W. Jones, 31, and Travis Leon Gilbert, 27, all of Columbia.  The dogfighting investigation continues.

The ASPCA will provide daily care for the dogs at the temporary shelter until custody is determined by the court. PetSmart Charities® provided supplies including pet crates, toys and treats to support the rescue operation.

Dog fighting is a felony in all 50 states and the District of Columbia. Earlier this year, the Farm Bill was signed by President Obama, making it a federal offense to attend an organized animal fight and imposing additional penalties for bringing a minor to a fight.

About the ASPCA®

Founded in 1866, the ASPCA® (The American Society for the Prevention of Cruelty to Animals®) is the first animal welfare organization in North America and serves as the nation’s leading voice for animals. More than two million supporters strong, the ASPCA’s mission is to provide effective means for the prevention of cruelty to animals throughout the United States. As a 501(c)(3) not-for-profit corporation, the ASPCA is a national leader in the areas of anti-cruelty, community outreach and animal health services. For more information, please visit www.ASPCA.org, and be sure to follow the ASPCA on Facebook, Twitter, and Pinterest.

All charges in the indictment are merely allegations, and the defendants remain innocent unless and until proven guilty beyond a reasonable doubt.

Contact Person: Lance Crick (864) 282-2100

Columbia, South Carolina ---- United States Attorney William N. Nettles, stated today that, earlier this week, two Aiken men, Jesse James Quarles, 33, and Kenneth Islar, 27, each entered guilty pleas in federal court in Columbia to the charge of felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1). 

Quarles and Islar were indicted in July by a federal grand jury in separate indictments. United States District Judge J. Michelle Childs of Columbia accepted the pleas and will impose sentence after she has reviewed pre-sentence reports that will be prepared by the U.S. Probation Office.  Quarles and Islar previously waived their right to a detention hearing, and remain in custody.

Mr. Nettles stated the penalty for felon in possession is a fine of $250,000 and/or imprisonment for 10 years, plus a special assessment of $100.  However, should either Quarles or Islar be classified based on prior criminal history as an Armed Career Criminal, they would be subject to enhanced penalties--a mandatory minimum term of imprisonment of 15 years and a maximum term of life in prison, a fine of $250,000, a five-year term of supervised release, and a special assessment fee of $100. 

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 at Aiken City Hall several times a year. 

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 Aiken Department of Public Safety, the 2nd Circuit Solicitor’s Office (Aiken, Bamberg, and Barnwell counties), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).  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 aggressive individuals who unlawfully use, possess, or transfer firearms.  Both cases are assigned to Assistant United States Attorney Lance Crick of the Greenville office.

Contact Person: Stacey Haynes (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Chason Renee Chase, a/k/a “Lady Jamaica,” a/k/a “Lady J,” age 24, of Columbia, South Carolina and Atlanta, Georgia was sentenced today in federal court to three (3) months imprisonment, which will be followed by three (3) years of supervised release. In August, Chase, who had no previous prior criminal record, plead guilty to making false statements to agents of the Federal Bureau of Investigation (FBI) during a kidnapping investigation, in violation of Title 18, United States Code, Section 1001. United States District Judge Joseph F. Anderson, Jr. rejected Chase’s request for a probation sentence, citing the serious nature of the investigation during which Chase made false statements to the FBI.

Evidence presented at the change of plea hearing established that on April 9, 2014, agents with the FBI’s Columbia Violent Gang Task Force received information that Chase was affiliated with individuals, including North Carolina prisoner and gang member Kelvin Melton, that were allegedly involved in an on-going kidnapping of a North Carolina state prosecutor’s father on April 5, 2014. When FBI agents approached Chase in Columbia and advised her of the on-going kidnapping investigation, Chase denied knowing Melton, stated that she did not recognize a photograph of Melton, denied recognizing Melton’s telephone number, denied communicating with any gang members since last year, and denied communicating with Melton. Agents confirmed through phone records that Melton and Chase had recently been in contact. In fact, after FBI agents arrested Chase and while they were interviewing her that evening, one of Chase’s cellular phones showed that Melton was frantically attempting to contact her from his jail cell in North Carolina. At this point, the kidnapping victim had not been rescued, so FBI agents immediately forwarded information and documentation seized from Chase’s residence to FBI agents in North Carolina and Georgia to aid in their attempt to rescue the victim and identify and locate the kidnapping suspects. The investigation confirmed and Chase later admitted that she was a member of the Bloods gang and that she kept their membership records and dues. The kidnapping victim was rescued in Atlanta later that night. The kidnapping investigation/prosecution is being prosecuted in the Eastern District of North Carolina.

The case was investigated by the FBI. Assistant United States Attorney Stacey Haynes of the Columbia office handled the prosecution of the case.

Contact Person: Stacey Haynes (803) 929-3000

Columbia, South Carolina ---- United States Attorney’s Office announces today that there will be a sentencing hearing tomorrow (October 23, 2014) in United States v. Chason Renee Chase.  The hearing will be held at 10:00 am on October 23, 2014, before United States District Judge Joseph F. Anderson, Jr. (courtroom # 4) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.

Contact Person: Bill Day (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that James O'Neal Arthur, Jr., age 57, of North Augusta, South Carolina has entered a guilty plea in federal court in Columbia, to Possession of Child Pornography, a violation of 18 U.S.C. § 2252S(a)(5)(B).  United States District Judge J. Michelle Childs of Columbia 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 Arthur was an employee of a government contractor, near Aiken, when an internet audit was conducted on April 1, 2014. The audit revealed Arthur had been visiting inappropriate websites so he was sent home while a review was conducted. While at home, Arthur contacted co-workers 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 minor females engaged in sexually suggestive/explicit conduct. Further investigation revealed that Arthur had been producing child pornography for years by making videos, and then producing thousands of pictures by making still photos from the films.  

Mr. Nettles stated the maximum penalty for Possession of Child Pornography is imprisonment for 10 years and/or a fine of $250,000.

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 is prosecuting 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: Stacey Haynes (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Kirstie Elaine Philome Barratt, age 22, of Fort Mill, South Carolina pled guilty as charged today in federal court.  Barratt plead guilty to making a false statement to a federal agent, in violation of Title 18, United States Code, Section 1001.  Barratt plead straight up to the charge without a plea agreement.  United States District Judge Joseph F. Anderson, Jr. accepted the plea and will impose a 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 during the early morning hours of January 7, 2014, deputized task force agents with the Federal Bureau of Investigation’s (FBI) Charlotte Safe Streets Task Force/Violent Crime Apprehension Team were in Fort Mill, South Carolina searching for a subject (hereinafter “Subject”) who was wanted for an armed robbery of a restaurant in North Carolina.  Agents, in police attire and accompanied by York County Sheriff’s Department officers in marked units, approached the residence of the Subject’s girlfriend, Barratt, in an attempt to determine if the Subject was in the residence.  After approximately 15 minutes of the agents knocking on the door and announcing their presence with a loud speaker, Barratt came to the door.  Barratt, who was advised by agents that it was a crime to make a false statement to federal agents, told the agents that her boyfriend was not in the home, that she had not seen him for two (2) months because they had broken up, and that the only other persons in the residence were her parents.  Barratt gave the agents consent to search the residence.  Upon completing a sweep of the residence, agents located Barratt’s parents asleep in one upstairs bedroom and noticed the door shut to another upstairs bedroom.  Agents could hear a dog barking in that other upstairs bedroom, so they asked Barratt to secure the dog so they could search the bedroom. Barratt went into the bedroom and came out with the dog.  Agents then went into the bedroom and found the Subject crouched in the corner with his weapon drawn.  Gunfire ensued and an FBI task force agent, as well as the Subject, were shot.  Both Barratt and the Subject were taken into custody.  Barratt later advised agents that she knew her boyfriend was in the residence, that she thought he was going to hide, and that when she entered the bedroom to retrieve the dog, she saw him with the gun, but did not tell the agents before allowing them to enter the bedroom.

Mr. Nettles stated that Barratt faces a statutory maximum sentence of five (5) years, a fine of $250,000, and a term of supervised release of up to three (3) years following the term of imprisonment.  Barratt also may face deportation as a result of her guilty plea.

The case was investigated by the FBI, the York County Sheriff’s Department, and the South Carolina Law Enforcement Division (SLED), 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: Beth Drake (803) 929-3000

Columbia, South Carolina ---- The United States Attorney’s Office advises that there will be a pre-trial conference hearing tomorrow (October 22, 2014) in United States v. James William Lewis and Kirstie Elaine Philome Barratt. The hearing will be held at 9:30 am on October 22, 2014, before United States District Judge Joseph F. Anderson, Jr. (courtroom # 4) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.

Contact Person: Beth Drake (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Warren Dominique McDaniel, age 28, of Gaston, South Carolina pled guilty as charged today in federal court. McDaniel plead guilty to two (2) counts of being a felon in possession of firearms and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2), and 924(e). McDaniel plead straight up to both charges in the federal indictment without a plea agreement. United States District Judge Michelle Childs 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 July 22, 2010, officers with the Columbia Police Department executed a state search warrant at a Columbia residence following the controlled purchase of a small amount of marijuana from a male inside the residence. During a search of the residence, officers recovered a Romarm 7.62x39mm rifle with a 30-round high capacity magazine, a Taurus .45 caliber pistol, rounds of .45 caliber ammunition, a digital scale, a box of ziplock bags, and a marijuana blunt. McDaniel, who lived at the residence at the time, admitted that the guns and marijuana belonged to him and that he bought the guns off the street because he was a felon. McDaniel was charged by state authorities and plead guilty to simple possession of marijuana and paid a fine. Evidence presented at the change of plea hearing today further established that on April 12, 2014, officers with the Lexington County Sheriff’s Department responded to a shooting at a birthday party in Gaston, South Carolina and found that a 7 year-old female had been shot and killed and a 5 year-old male had been shot in the arm. The investigation revealed that during the party, McDaniel’s girlfriend had unlocked the trunk of McDaniel’s vehicle to allow a child to retrieve a toy. Unbeknownst to her, while looking for the toy, the child found a loaded FEG 7.62x39mm rifle with a 30-round high capacity magazine in the trunk of the vehicle and pulled the trigger, causing the rifle to fire while inside the trunk, striking the other two (2) children who were standing outside the vehicle. The investigation revealed that the firearm belonged to McDaniel, who admitted that he had purchased it off the street approximately 4 ½ years earlier. McDaniel further admitted that he sold marijuana and that he kept the gun for protection.

The investigation revealed that McDaniel is prohibited under federal law from possessing firearms and/or ammunition based upon his prior state convictions for unlawful carrying of a weapon (two separate counts), possession of a stolen pistol, possession of marijuana, possession of a stolen pistol, possession of less than 1 gram of crack cocaine, giving false information, possession with intent to distribute marijuana, and simple possession of marijuana.

Mr. Nettles stated that McDaniel 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 McDaniel 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), the Lexington County Sheriff’s Department, and the Columbia 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: Beth Drake (803) 929-3000

Columbia, South Carolina ---- United States Attorney’s Office announces today that there will be a Pre-Trial Conference hearing tomorrow (October 21, 2014) in United States v. Warren Dominique McDaniel. The hearing will be held at 2:00 pm on October 21, 2014, before United States District Judge Michelle Childs (courtroom # 2) at the Matthew J. Perry Federal Courthouse in Columbia, South Carolina.

Contact Person: Lance Crick (864) 282-2100

Columbia, South Carolina ---- United States Attorney Bill Nettles announced that on Wednesday, October 22, 2014, members of the United States Attorney’s Office and their local, state, and federal law enforcement partners will meet with students from across South Carolina, as part of South Carolina’s 13th annual Student Pledge Against Gun Violence.

With a focus on keeping their schools and communities safe, students in middle school and high school will sign a voluntary pledge promising that they will never take a gun to school, will never resolve a dispute with a gun, and will use their influence to prevent friends from using guns to resolve disputes. Elementary school children will make a simpler commitment, pledging that if they see a gun they will not touch it, they will assume that any gun they see might be loaded, and they will tell a teacher or a trusted adult. The effort is part of South Carolina’s Project CeaseFire, which is South Carolina’s implementation of the Department of Justice’s Project Safe Neighborhoods program, which is aimed at reducing gun violence. The Student Pledge Against Gun Violence is a national program that recognizes the role that young people, through their own decisions, can play in reducing gun violence. This campaign against youth gun violence culminates each October in a “Day of National Concern about Young People and Gun Violence.” The program provides a means for beginning the conversation with young people about gun violence. Students from around the country will join together in pledging to do their part to end gun violence. Over the years, millions of students nationwide have signed the pledge.

Mr. Nettles said that, just as in years past, the response to the pledge campaign has been outstanding, with approximately 29, 203 students from 67 schools across the state agreeing to take part. "Once again our office is pleased to take this opportunity to reach out to South Carolina students with an effort to engage students, teachers, and administrators to facilitate a dialogue with students about gun violence and the importance of making good decisions," stated Mr. Nettles.

The U.S. Attorney's Office worked with schools, student resource officers, and law enforcement agencies throughout the state to make the pledges available, providing the pledges to participating schools as well as scheduling presentations for some 37 of the schools that requested speakers. Below is a list of South Carolina schools that are participating in this year's pledge. For information on any events scheduled for a particular school, please contact the school. For additional information concerning the pledge, visit the national Student Pledge website at

Participating Schools: Abbeville High School Abbeville, SC Alice Drive Middle School Sumter, SC Andrews, SC Arden Elementary School Columbia, SC Bennettsville Intermediate School Bennettsville, SC Beech Hill Elementary School Summerville, SC Bethune-Bowman Elementary School Rowesville, SC Blacksburg Middle School Blacksburg, SC Brockington Elementary Magnet School Darlington, SC Burton-Pack Elementary School Columbia, SC Busbee Creative Arts Academy Cayce, SC Carver-Lyon Elementary School Columbia, SC Castle Heights Middle School Rockhill, SC C.E. Murray Junior High School Greeleyville, SC C.E. Murray High School Greeleyville, SC Central Elementary School Central, SC Cherokee Trail Elementary School Donalds, SC Croswell Drive Elementary School Sumter, SC E.B. Morse Elementary School Laurens, SC Ebenezer Middle School Sumter, SC Fairfax Elementary School Fairfax, SC Fairfield Elementary School Winnsboro, SC Fair-Oak Elementary School Westminster, SC Forest Brook Middle School Myrtle Beach, SC Grassy Pond Elementary School Gaffney, SC Hillcrest Middle School Dalzell, SC Hollis Academy Elementary School Greenville, SC J.C. Lynch Elementary School Coward, SC John W. Moore Intermediate School Florence, SC Joseph Keels Elementary School Columbia, SC Kinard Elementary School Clover, SC Ladson Elementary School North Charleston, SC Lamar High School Lamar, SC Lakeside Middle School Anderson, SC Latta Elementary Latta, SC Laurens Elementary School Laurens, SC Laurens Middle School Laurens, SC Limestone-Central Elementary School Gaffney, SC Lewisville Middle School Richburg, SC Logan Elementary School Columbia, SC Loris Elementary School Loris, SC Luther Vaughn Elementary School Gaffney, SC Macedonia Middle School Moncks Corner, SC Malcolm C. Hursey Elementary School North Charleston, SC Marion High School Marion, SC Mary Bramlett Elementary School Gaffney, SC Mary Ford Elementary School Charleston, SC McLaurin Elementary School Florence, SC McKissick Elementary School Easley, SC Merriwether Middle School North Augusta, SC Mitchell Math and Science Elementary School Charleston, SC Nevitt Forest Community School of Innovation Anderson, SC Northwest Elementary School Gaffney, SC Northwest Middle School Travelers Rest, SC Oakway Intermediate School Westminster, SC Oakwood Windsor Elementary School Aiken, SC Petersburg Primary School Pageland, SC Pocalla Springs Elementary School Sumter, SC Rawlinson Road Elementary School Rockhill, SC Rivelon Elementary School Orangeburg, SC South Kilbourne Elementary School Columbia, SC Stewart Heights Elementary School Dillon, SC Timrod Elementary School Florence, SC West Hartsville Elementary School Hartsville, SC W.A. Perry Middle School Columbia, SC

Contact Person: Dean Secor (843) 727-4381

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Dao Ping Lin (LIN), age 52, and Jin Xian Yang (YANG), age 52, both of Charleston, South Carolina were sentenced today in federal court in Charleston, South Carolina regarding the guilty pleas they entered on October 22, 2013.  United States District Judge Richard M. Gergel of Charleston sentenced LIN to one (1) year and a day in prison and three (3) years of supervised release for Willful Failure to Truthfully Collect and Pay over Withholding Taxes, a violation of 26 U.S.C. § 7202, and six (6) months in prison for Pattern or Practice of Hiring Illegal Aliens, in violation of 8 U.S.C §§1324a(a)(1)(A) and 1324a(f)(1).  LIN’s sentences are to run concurrently.  Judge Gergel sentenced YANG to eighteen (18) months in prison and 3 years of supervised release for Structuring Bank Transactions of $10,000 or less, in violation of 31 U.S.C §§ 5324(a)(3) and 5324(d)(2). 

Evidence presented at the change of plea hearing established that between February 2009 and March 2009, LIN and YANG, a married couple, purchased or caused to be purchased $85,885 of U.S. Postal Service money orders in increments totaling slightly less than the $3,000 reporting requirement for such instruments. The postal money order structuring activity led to a joint investigation by the Postal Inspection Service (USPIS) and the Internal Revenue Service-Criminal Investigation (IRS-CI).  The U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) joined the investigation after receiving information from an anonymous source that LIN was employing illegal aliens and paying such workers under the table.

Income taxes and Federal Insurance Contributions Act (FICA) taxes collected from employees are collectively known as “trust fund taxes” and must be reported on quarterly Employment tax returns (Forms 941). Employers are also required to pay over a matching portion of FICA taxes and report that on the Forms 941 as well. The employer’s matching portion of FICA taxes is not a “trust fund tax.” It is a direct tax. 26 U.S.C. § 7202 only applies to “trust fund taxes,” but the tax loss due to failure to truthfully account for and pay over the employer’s matching portion of FICA taxes can be considered as relevant conduct for sentencing purposes.

The joint investigation revealed that LIN has owned and operated Healthy Inc., d/b/a Osaka Restaurant in Charleston since 2006. Most of LIN’s employees were illegal aliens. Osaka’s payroll returns reported the wages paid by check to LIN’s family and other legal workers. The illegal aliens’ wages, all paid in cash, were not included on Forms 941. The investigation further revealed that LIN was the responsible party for collecting, truthfully accounting for, and paying over “trust fund taxes” for Osaka Restaurant.  For the 1st quarter 2007 through the 4th quarter 2010, LIN filed false Form 941s. The modus operandi was to only give the outside accountant payroll information related to the employees paid by check.  The unremitted “trust fund taxes” totaled $228,912, and the unpaid employer taxes totaled $46,512. As for the guilty plea tax count (4th Quarter 2010), LIN underreported wages in the amount of $38,000, which resulted in unpaid “trust fund taxes” of $14,307.

The illegal aliens employed by Osaka Restaurant lived in a house that LIN owned. LIN and Osaka Restaurant owned passenger vans used to transport the illegal aliens to and from the employee house and the restaurant.  After conducting surveillance and a traffic stop of an Osaka Restaurant van that contained illegal alien workers, search warrants were executed at LIN and YANG’s residence, the employee house, and Osaka Restaurant. Evidence seized during the searches included payroll sheets itemizing the amounts employees were paid by checks and the amounts employees were paid in cash. When agents searched the employee house they found two individuals on the premises. One individual had a pending asylum petition and the other individual was an illegal alien. Four additional illegal alien workers were found on the restaurant’s premises. ICE administratively arrested the five illegal aliens, who were later deported.

Agents also determined that YANG intentionally structured currency withdrawals in amounts of $10,000 or less (mostly in $9,800 increments) for the purpose of evading the filing of Currency Transaction Reports (CTRs). During the years 2007, 2008, and 2009, YANG conducted 102 structured cash withdrawal transactions totaling $999,600. She made the series of withdrawals from various branches of Bank of America, where the business bank account for LIN’s restaurant was maintained. YANG had signature authority of the account.

During the course of the joint investigation, agents seized $399,619 in currency from LIN and YANG as well as a 2008 Infinity automobile. LIN and JIN agreed to the forfeiture of those seized assets, and Judge Gergel entered an order of forfeiture for those assets at the sentencing hearing.

The case was investigated by agents of the U.S. Internal Revenue Service-Criminal Investigation (IRS-CI), the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the U.S. Postal Inspection Service (USPIS).  Assistant United States Attorney Dean H. Secor of the Charleston office prosecuted the case.

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: Unregistered Sex Offender Indicted
Shana Marie Lawson, age 36, of Lancaster, South
Carolina, 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(a).  The maximum penalty Lawson 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 William E. Day, II of the Columbia office for prosecution. 

Columbia Man Indicted For Defrauding The Department Of Veterans Affairs
Bobby Joe Haynes, age 60, of Columbia, South Carolina, was charged in a 1-count Indictment with converting over $1,000.00 belonging to the United States Department of Veterans Affairs from March 2011 to October 2013, a violation of Title 18, United States Code, Section 641.  The maximum penalty Bobby Joe Haynes could receive is 10 years imprisonment.  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 E. Day, II, of the Columbia office for prosecution.

Fort Lawn Man Indicted for Defrauding the Social Security Administration
Gerald W. Costner, age 70, of Fort Lawn, South Carolina, was charged in a 1-count Indictment with converting over $1,000.00 belonging to the Social Security Administration from June 1992 to January 2014, a violation of Title 18, United States Code, Section 641.  The maximum penalty Gerald W. Costner could receive is 10 years imprisonment.  The case was investigated by agents of the United States Office of Inspector General, Social Security Administration 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: Rhett DeHart (843) 727-4381

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Carol Libby, age 56, was sentenced today in federal court in Charleston, South Carolina, for Wire Fraud, a violation of 18 U.S.C. § 1343.  United States District Judge Richard M. Gergel of Charleston sentenced Libby to 48 months imprisonment and 3 years supervised release.

Evidence presented at her guilty plea hearing established that Libby was the Chief Financial Officer (CFO) of Crisis Ministries, the largest homeless charity in South Carolina.  From 2006-2013, Libby, a certified public accountant (CPA), embezzled more than $440,000 from the charity.  To execute the fraud, Libby caused more than 400 unauthorized checks to be issued to actual vendors and suppliers of Crisis Ministries.  She then forged the names of the vendors on the back of the checks and wrote her bank account number under the forged endorsements.  Through a series of financial manipulations involving wire communications, Libby caused the unauthorized checks to be deposited into bank accounts over which she had control. 

The case was investigated by agents of the United States Secret Service and Charleston Police Department.  Assistant United States Attorney Rhett DeHart of the Charleston office prosecuted the case.

Contact Person: Bill Watkins (864) 282-2100

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Ronnie Gene Wilson, age 67, pled guilty today in federal court in Greenville, to conspiracy to obstruct justice, a violation of Title 18, United States Code, Section 371.  United States District Judge J. Michelle Childs of Greenville accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.

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

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 a co-conspirator to keep for 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, Ron Wilson gave a co-conspirator $7000 in cash in an envelope.

In March 2014, Secret Service and the Receiver recovered a second ammunition can of money ($172,859).  Ron Wilson had been given this ammunition can to a co-conspirator as well. 

Mr. Nettles stated the maximum penalty Ronnie Gene Wilson can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.

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

Contact Person: DeWayne Pearson (803) 929-3000

Columbia, South Carolina ---- James Autry “Audi” Clemens, age 60 of Johnston, SC, Larry Baker, age 64 of Cameron, SC and Steven Crandall, age 59 of Salisbury, NC entered guilty pleas to theft of government funds in violation of Title 18, United States Code, Section 641 in connection with their scheme to defraud Shaw Air Force Base through various construction contracts. Clemens entered an additional guilty plea to one count of money laundering in violation of Title 18, United States Code, Section 1956(a)(1)(B)(i) for his role in the scheme. According to facts presented during the guilty plea hearing, the men would inflate costs of construction projects by submitting invoices that falsely claimed that additional workers and resources were used to complete construction jobs on the base. The men would then split the fraudulent payments between themselves. The maximum penalty Baker and Crandall face is 10 years imprisonment and a fine of $250,000.  Clemens faces a maximum penalty of 20 years imprisonment and a fine of $500,000.

"Mr. Clemens guilty plea is significant in sending a message that while fraud involving government contracts may be initially lucrative, nothing lasts forever and the consequences are serious. We and our law enforcement partners will work continuously to uncover this type of criminal activity." said Thomas J. Holloman III, Special Agent in Charge, IRS Criminal Investigation. The case was also investigated by agents of the United States Air Force and was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.

Contact Person: Nancy Wicker (803) 929-3000

Charleston, South Carolina ---- Acting United States Attorney Beth Drake stated today that Edwin Donald Givens, age 51, of Columbia, South Carolina, was sentenced today in federal court after earlier pleading guilty to misprision of a felony in connection with a kickback scheme related to the 2011 South Carolina State University homecoming concert, in violation of Title 18, United States Code, Section 4.
United States District Judge David C. Norton sentenced Givens to 6 months probation. The Government recommended the probationary sentence because of Givens’ cooperation and substantial assistance in the case of United States v. Jonathon Pinson.  

Evidence presented at the plea hearing established that Givens had actual  knowledge of the commission of a federal felony offense involving the solicitation, receipt and payment of kickbacks by others involved with the concert, and that he failed to disclose such knowledge and took affirmative steps to conceal such information from federal law enforcement agents investigating the scheme, both prior to and during a November 14, 2011, interview with agents of the Federal Bureau of Investigation. 

The case was investigated by agents of the Federal Bureau of Investigation (FBI),  the South Carolina Law Enforcement Division (SLED), the Department of Housing and Urban Development, Office of Inspector General (HUD-OIG) and the Internal Revenue Service (IRS-CI).  This case and its companion cases are being prosecuted by Assistant United States Attorneys Nancy C. Wicker, Jane B. Taylor, DeWayne Pearson and J.D. Rowell.

Contact Person: Beth Drake (803) 929-3000

Columbia, South Carolina ---- William N. Nettles, United States Attorney for the District of South Carolina announced today that Chandra Padgett, 46 of Batesburg, South Carolina, was sentenced to 87 months incarceration for her conviction on charges of wire fraud and tax evasion. Padgett was an office manager and bookkeeper for Advanced Pain Therapies (APT), a clinic in Irmo, SC. Facts presented during Ms. Padgett’s guilty plea explained that she set up a shell company named PSS (Padgett Specialty Scrapbooking Services). The name PSS was shared with APT’s primary vendor and allowed Padgett to send APT bogus invoices for payment. Between June 2008 and December 2010, Padgett created checks made payable to her company PSS and deposited them in to an account to which she had primary control. During this time, Padgett also made payments to her personal credit cards using APT funds and wrote unauthorized checks to family members for personal expenses. Padgett also used her position as bookkeeper and office manager to increase her own salary without her employer’s authorization or knowledge. According to a forensic accounting performed by APT, Padgett stole approximately $1,941,455.96 from APT. Facts presented during the sentencing hearing indicated that Padgett used the stolen money to finance an extravagant wedding and a lifestyle filled with expensive vacations, gifts and even an expensive New York apartment. Padgett was ordered to pay restitution to her employer and the Internal Revenue Service. Padgett is subject to forfeiture of her assets to satisfy the judgment against her.

The investigation and convictions were pursued by the Internal Revenue Serviceand was prosecuted by Assistant United States Attorney T. DeWayne Pearson of the Columbia office.

Contact Person: Jay Richardson (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles announced today that Horance Antonio Taylor, a/k/a “Bloody Horace,” (24) of Columbia was sentenced to fourteen years in prison for dealing drugs and using firearms in connection with his drug dealing.

In April of 2012, the Columbia Police Department conducted a traffic stop of Taylor. During the search of the vehicle, Taylor was found to be in possession of crack cocaine with the intent to distribute while also in possession of a 9mm pistol in furtherance of his drug trafficking. After Taylor was released on a state bond, the Columbia Police Department executed a search warrant at Taylor’s residence in September of 2013. During the resulting search, Taylor was again found in to have crack cocaine with the intent to distribute while in possession of a .45 caliber pistol. In December of 2013, a federal grand jury indicted Taylor on multiple narcotics and firearm offenses. Taylor pleaded guilty to drug and firearm offenses on June 11, 2014. In light of Taylor’s prior convictions and his criminal activities, the Court sentenced Taylor to fourteen years in federal court.

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

Contact Person: Stacey Haynes (803) 929-3000

Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Marquel Davon Foster, age 23, of Columbia, South Carolina was sentenced today in federal court after earlier pleading guilty to making a false statement in the acquisition of firearms from a federal firearms licensee, in violation of Title 18, United States Code, Sections 922(a)(6) and 924(a)(2).  Senior United States District Judge Margaret B. Seymour sentenced Foster to 18 months imprisonment, followed by three (3) years of supervised release. 

Evidence presented at the change of plea hearing established that in January 2013, during the execution of a drug search warrant in Bridgeton, NJ, officers recovered a Masterpiece Arms .45 caliber pistol with a high capacity magazine.  A trace of the firearm revealed that it was purchased by Foster in Columbia, SC, on February 6, 2012.   Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) determined that Foster had purchased a total of six (6) firearms, comprised of two (2) firearms on February 6, 2012, two (2) firearms on February 8, 2012, and two (2) additional firearms on March 7, 2012.  When agents approached Foster, he claimed that the Masterpiece Arms .45 caliber pistol with a high capacity magazine had been stolen a year earlier, but that he had the other five (5) firearms in his possession.  When agents asked to see those five (5) firearms, Foster admitted that he did not have them and that he had purchased them for an individual from New Jersey that he met at the gun store in exchange for money. Foster stated that the individual, who he knew only by a nickname, gave him money, and asked Foster to purchase the firearms for him since he was unable to legally purchase them because he was a felon.  Foster admitted to making a false statement on the forms to purchase the firearms and to purchasing a total of six (6) firearms for this individual in approximately a one-month period.  The six (6) firearms were a Hi-Point .380 caliber pistol, a Masterpiece Arms .45 caliber pistol, a European American Arms, Corp. .357 caliber revolver, a Ruger 9mm pistol, a Taurus .40 caliber pistol, and a Masterpiece Arms 9mm pistol.   Only one (1) of those firearms has been recovered as of this date.

The case was investigated by ATF and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases.  Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.