Western District of Tennessee

Jackson, TN – A West Tennessee woman pleaded guilty to wire fraud. D. Michael Dunavant, United States Attorney for the Western District of Tennessee announced the guilty plea today.

According to the charging instrument, Ronda Hopkins Richards, 54, is the owner of Ronda’s Travel Corner, in Jackson, TN. From November 2016 to July 2017, Richards defrauded approximately 100 clients/victims of funds related to their travel. In some cases, Richards enticed the victims to pay cash for a trip that was never booked. In other instances, she booked air travel for victims, but did not provide lodging at the destination for which the victim had pre-paid.

U.S. Attorney D. Michael Dunavant said: "This act of greed and selfishness has caused many of the more than 100 victims to endure unnecessary and unwarranted financial hardship. This case reflects the resolve of the U.S. Attorney’s Office along with partner agencies to bring to justice those individualswho commit fraud and prey on the innocent."

On June 19, 2017, Richards convinced a client to write a $17,172.00 check to Ronda’s Travel Corner for a family trip to Disney World. The trip was scheduled for March 24, 2018, through March 31, 2108. Richards never booked the trip, but instead deposited the check into her own personal account at First South Bank and used the funds for her personal gain.

This transaction caused a wire transmission of $17,172.00 to occur in interstate commerce, between the victims’ bank, Greenfield Banking Company, Greenfield, TN, through the Federal Reserve Check Clearing Center located in Atlanta, GA, and then to First South Bank in Jackson, TN. This interstate transmission resulted in the crime of wire fraud. Over 100 of Ronda’s Travel Corner clientele were victims of similar schemes. Because of this scheme, the victims lost a total of approximately $410,280.25.

On August 3, 2017, Richards was interviewed by the Jackson Police Department. She stated that she had fallen behind in her payments and began taking money, did not keep up with what she had taken and "everything spiraled out of control."

"Ronda Richards robbed families of once-in-a-lifetime vacations, graduation trips, and anniversary celebrations; leaving them with empty bank accounts and in one case, stranded in a foreign country," said Deputy Chief Tyreece Miller of the Jackson Police Department. "Her actions were inexcusable and criminal. JPD is pleased to have a hand in bringing her to justice."

Richard faces up to 20 years imprisonment; $250,000 fine and 3 years supervised release. This case was investigated by the Jackson Police Department and the United States Secret Service.

For more information, or if there are other victims who have not made their losses known, please contact the U.S. Attorney’s Office Victim/Witness Coordinator at 901-544-4231.

Assistant U.S. Attorney Victor L. Ivy is prosecuting this case on the government’s behalf.

Memphis, TN – A West Tennessee man has been sentenced to 300 months in federal prison for distributing heroin resulting in a fatal overdose. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, on February 16, 2018 Marvin "Pookie" Foster, 51, was sentenced to 25 years for distributing heroin, which resulted in the death of Cody Tetleton. Tetleton had a substance abuse history, but, like other similar victims, had completed two rehabilitation programs, being released from treatment approximately two weeks prior to his death.

United States Attorney D. Michael Dunavant said: "Our state and our district are suffering from the heroin and opioid epidemic, causing increases in drug trafficking, violence, addiction, and overdose deaths that are tearing our communities apart. The U.S. Attorney’s Office has developed a district-specific strategy to prioritize cases involving heroin distribution causing overdose deaths, and this case demonstrates the significant penalty that we will use to hold offenders accountable."

According to phone records, on July 1, 2014, Tetleton contacted Marvin Foster for the purpose of purchasing heroin. Tetleton drove to Foster’s residence in Halls, Tennessee to make the purchase. Foster sold the victim heroin and some hydrocodone pills. The victim used the heroin while seated in his vehicle in Foster’s driveway. Witnesses gave statements that Foster called them regarding the victim having overdose symptoms while still at his house. Some of those witnesses advised Foster to call 911 and to get the victim medical treatment.

Instead, Foster drove Tetleton’s truck to a remote area and left the victim in his truck with no medical assistance. On July 2, 2014, a farmer found the victim in the back seat of his own truck. A medical examiner revealed the cause of death as heroin toxicity. Furthermore, the victim’s blood was analyzed by a forensic toxicology lab and the blood showed a lethal amount of heroin was present in the blood.

Kristie Ward Thompson was indicted on October 2, 2017, in Lauderdale County, Tennessee, for facilitation of second-degree murder arising from this same incident.

Eddie Tetleton, Cody’s father, prepared a statement from the family, which the AUSA read into the record on their behalf. The following is an excerpt from that statement: "If you watch the national news, read the local papers and certainly look at social media, you will see families across the country, whose stories (their testimonies) are hauntingly similar to ours. The question that haunts families across the country is, HOW COULD THIS HAPPEN. The sentencing today will not answer a question that we have awaken us every night. But I feel most families realize we will not know this answer in this life. Our son paid the ultimate price for the demons that crept into his life. Our family too was sentenced on the tragic day of his death to life, by losing a very special young man. We do feel that Marvin Foster should also be sentenced for the part he played in the death of our son. And just maybe if it is just one at a time, the Justice System can remove those that prey on our SONS and DAUGHTERS for MONEY!!! And maybe no other family will wake during the night searching for answers that are not there….because this man contributed to their BROKEN WORLD!"

On February 20, 2018, U.S. District Judge John T. Fowlkes Jr., sentenced Foster to serve 300 months imprisonment followed by 3 years supervised release.

This case was investigated by the 25th Judicial Drug Task Force and Drug Enforcement Administration.

Assistant U.S. Attorney Beth C. Boswell prosecuted this case on the government’s behalf.

 

Jackson, TN – Seven suspects from West Tennessee have been indicted for conspiracy to distribute 50 grams or more of actual methamphetamine or ICE. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictment today.

A task force made up of special agents with the Federal Bureau of Investigation, the Dyersburg Police Department and members of the FBI Jackson Safe Streets Task Force arrested seven people in an early morning raid on February 22, 2018, on federal drug trafficking charges.

Yesterday morning’s arrests are the result of a year-long investigation in which law enforcement officials have seized a large amount of ICE. One seizure alone was approximately ½ kilo of actual methamphetamine, which was 95% pure.

A federal grand jury in Jackson, TN returned the eighteen-count indictment on February 20, 2018, but it remained under seal until yesterday’s arrest. The indictment contained counts against each defendant alleging violations under the Controlled Substances Act. Some defendants also have firearms charges. The charges stem from the defendants’ participation in a conspiracy to distribute and to possess with the intent to distribute ICE.

The suspects arrested during the operation were:

Christopher Faulcon a/k/a "Wheezy," 32, Dyersburg, TN

Tommy Taylor, a/k/a "Chubbs,"35, Friendship, TN

Damien Nixon, 39, Gates, TN

David McNeely, 41, Finley, TN

Patricia Wilson, a/k/a "PJ," 30, Dyersburg, TN

Elisha Kirk, 29, Dyersburg, TN

William Hardy, 54, Dyersburg, TN

This case was investigated by the Federal Bureau of Investigation and the Dyersburg Police Department.

Assistant U.S. Attorney Beth C. Boswell is prosecuting this case on the government’s behalf.

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Memphis, TN – On August 23, 2017, a federal grand jury returned a one count indictment against Rafael Garza a/k/a "Poppy," Timothy Woods, Juan Cisneros a/k/a "Hot Rod," Alfredo Arambul a/k/a "Freddy," a/k/a "Chain," Carlos Alberto Lopez, Tiffany Harper, Anthony Hope, Anthony Gilliam, Corey Blair, Marcus Joyner, Ricky Dortch, and Johnny Smith alleging that these individuals conspired to possess with the intent distribute five kilograms or more of cocaine.

On February 15, 2018, a federal grand jury returned a second seven count indictment arising out of the same investigation against Jackie Arnold a/k/a/ "Jackie Red," Timothy Brown, a/k/a "Blemi," Dedrick Chism, a/k/a/ "Dean," Foyice Clark, Reginald Duncan, Theotis Evans, Rico Fason, Rodney Harper, Tangela Jackson, Lakata Johnson, Roderick Kelley, a/k/a/ "Hot-Rod," and Shunta Thompson-Truehart, alleging illegal drug violations. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictments today.

The twelve defendants currently in custody on this most recent seven-count indictment are:

Jackie Arnold, a/k/a "Jackie Red," 47, Memphis, TN
Timothy Brown, a/k/a/ "Blemi," 38, Memphis, TN
Dedrick Chism, a/k/a/ "Dean," 42, Memphis, TN
Foyice Clark, 60, Memphis, TN
Reginald Duncan, 46, Memphis, TN
Theotis Evans, 41, Memphis, TN
Rico Fason, 31, Memphis, TN
Rodney Harper, 41, Memphis, TN
Tangela Jackson, 49, Memphis, TN
Lakata Johnson, 45, Memphis, TN
Roderick Kelley, a/k/a/ "Hot-Rod," 43, Memphis, TN
Shunta Thompson-Truehart, 38, Memphis, TN

Count 1 charges Jackie Arnold a/k/a "Jackie Red," Timothy Brown, a/k/a "Blemi," Dedrick Chism a/k/a "Dean," Foyice Clark, Reginald Duncan, Theotis Evans, Rico Fason, Rodney Harper, Tangela Jackson, Roderick Kelley, a/k/a "Hot-Rod," and Shunta Thompson-Truehart with conspiracy to possess with the intent to distribute 5 kilograms or more of cocaine.

Count 2 charges Jackie Arnold a/k/a "Jackie Red," with conspiracy to possess with intent to distribute 100 grams or more of heroin.

Count 3 charges Jackie Arnold a/k/a "Jackie Red," Dedrick Chism, Reginald Duncan, Rico Fason and Shunta Thompson-Truehart with conspiracy to possess with intent to distribute marijuana.

Counts 4, 5 and 6 are redacted at this time.

Count 7 charges that Jackie Arnold a/k/a "Jackie Red," and Lakata Johnson conspired to conduct financial transactions involving the proceeds of drug trafficking with the intent to either promote the carrying on of the unlawful activity or knowing that the transaction was designed to conceal the source of the proceeds of the unlawful activity.

During this nearly two-year long investigation, agents seized approximately $700,000 in U.S. currency and assets, 3.5 kilos of heroin, 52 kilograms of cocaine, approximately 84 pounds of marijuana and several firearms. If convicted, the defendants face mandatory minimum sentences of 10 years imprisonment up to life.

The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, United States Postal Inspectors Office, FBI, Memphis Police Department, Multi-Agency Gang Unit, Shelby County Sheriff’s Office Narcotics Unit, and West Tennessee Drug Task Force investigated this case.

Assistant U.S. Attorneys Jerry Kitchen and Michelle Kimbril-Parks are prosecuting this case on the government’s behalf.

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

Memphis, TN – A federal grand jury has returned a superseding indictment against Misty West, 40, of Olive Branch, Mississippi. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the superseding indictment today.

The superseding indictment alleges four counts of wire fraud, one count of interstate transportation of monies stolen or taken by fraud, and three counts of filing false tax returns.

The grand jury originally returned an indictment against West last May. The original indictment charged West with wire fraud and interstate transportation of monies stolen or taken by fraud. The superseding indictment returned Tuesday, February 13, 2018, also alleges that West filed false tax returns for calendar years 2013-2015.

According to the superseding indictment, West was employed as the office manager, bookkeeper and paralegal at the Fowler Law Firm, located on Dr. Martin Luther King Jr., Avenue in Memphis. The superseding indictment alleges that between August 2011 and July 2016, West engaged in a scheme to defraud the law firm and its owner, Charles Wesley Fowler, of more than $400,000.

According to the superseding indictment, West used the internet to pay her personal cell phone bill from the firm’s account, and also to make a payment to the IRS on a personal tax debt.

The superseding indictment alleges that in other instances, Fowler gave West checks signed in blank to pay the firm bills. West completed the payee information and the amounts. The superseding indictment alleges that West routinely made some the checks payable to herself and deposited them to one of her bank accounts and thereafter withdrew funds.

Memphis, TN – Jermaine Dickerson, 41 of Ankeny, Iowa (formerly of Brighton, TN) pled guilty to one count of use of a telephone to maliciously convey false information concerning an attempt to damage and destroy a building and other real and personal property by means of an explosive and for failure to appear for sentencing. D. Michael Dunavant, United States Attorney for the Western District of Tennessee announced the sentence today.

According to the facts alleged in the indictment and revealed during the sentencing hearing, on March 6, 2016, Jermaine Dickerson called the Tipton County Jail at 1801 South College Street, Covington, Tennessee, threatened jail personnel and threatened to blow up the jail if the inmates were not released. Due to this call, the jail was put on lockdown and emergency response teams were deployed to search the area. No bomb was located.

In the subsequent investigation, officers developed information regarding the phone that was used to place the call. It was determined that Dickerson used the phone on March 6, 2016, to place the call from Iowa to the Tipton County Jail. In an interview with FBI agents, Dickerson admitted that he made the call, but stated he did not know why and that he meant no harm to anyone. Investigation also revealed Dickerson had been booked into the Tipton County jail on over 40 previous occasions.

U.S. Attorney D. Michael Dunavant said: "This office, along with our federal and local law enforcement partners, are vigilant to protect and prevent attacks on any critical infrastructure sites in West Tennessee, including correctional facilities. We take all threats seriously, and false reports of explosives cause law enforcement agencies to unnecessarily expend scarce and valuable government resources to respond, at the expense of taxpayers. We are pleased that the defendant has been held accountable for this disturbing crime of dishonesty, and we commend the quick and thorough response of FBI and the Tipton County Sheriff’s Office."

On July 24, 2017, Dickerson pled guilty to the bomb threat charge before U.S. District Judge Sheryl H. Lipman. Judge Lipman ordered Dickerson to appear for his sentencing hearing on October 19, 2017.

On October 19, 2017, Dickerson failed to appear for his sentencing. He was subsequently indicted for this new offense. On November 6, 2017, United States Marshals arrested Dickerson in Iowa.

On February 8, 2018, U.S. District Judge Sheryl H. Lipman sentenced Dickerson to serve a total of 53 months in prison followed by three years of supervised release.

This case was investigated by the FBI’s Joint Terrorism Task Force and Tipton County Sheriff’s Office.

Assistant U.S. Attorney Stephen Hall prosecuted this case on the government’s behalf.

WHAT: D. Michael Dunavant, United States Attorney for the Western District of Tennessee, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Drug Enforcement Administration, will make an announcement regarding the Department of Justice’s investigation into a Drug Trafficking Organization. DATE: Thursday, February 8, 2018 TIME: 2:00 p.m. WHERE:

United States Attorney’s Office – Main Conference Room
Clifford Davis Odell Horton Federal Building
167 North Main Street, Suite 800
Memphis, TN 38103

NOTE:

All media members must present government-issued photo I.D. (such as driver’s license), as well as valid media credentials.

Media are requested to RSVP to Cherri.Green@usdoj.gov. The conference room will be available for media to set up at 1:15 p.m. Everything must be pre-set by 1:30p.m. Press inquiries regarding logistics should be directed to Cherri Green at 901-969-2948.

 

 

 

 

 

 

 

 

Memphis, TN – Twenty-five members and associates of an armed drug trafficking organization, Major Stackz Entertainment, have been indicted for conspiring to distribute large quantities of cocaine, methamphetamine, heroin and marijuana throughout West Tennessee. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictment today.

On January 10, 2018, a federal grand jury returned the indictment, which remained sealed until the defendants’ arrest. On Wednesday, February 7, 2018, federal, state and local law enforcement agencies participated in an early morning round up. This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.

Members and associates of Major Stackz used firearms to protect their supply of drugs, supply routes, profits and distribution territory from competing drug trafficking organizations. The members and associates are from different, traditional street gangs, including the Young Mob, Vice Lords, Gangster Disciples, Kitchen Crip, and Bloods that have joined together to make money through criminal activity.

Symbolism played a large role in Major Stack culture. The primary symbol with which the gang associated was the acronym "MSE" for "Major Stackz Entertainment." Shirts and social media posts containing words like "MSE," "Major Stack," or "Stackz," were also known as gang identifiers.

Major Stackz started in and primarily operated out of the East Memphis area near the intersection of Kerr and Pillow Street in an area known to the locals as "DHG" or "Dope, hoes and guns." This area is located in the Western District of Tennessee.

The eighteen defendants listed are currently in custody:

Jarvis Cooper, a/k/a/ "J-Bo" "J-Bizzle," 31, Memphis, Tennessee

Terence Harper, a/k/a/ "Red," 44, Memphis, Tennessee

Jackie Arnold, a/k/a "Jackie Red," 47, Memphis, Tennessee

Joseph Newberry, 40, Memphis, Tennessee

Pamela Perkins, 28, Memphis, Tennessee

Anthony Jones, a/k/a "Squirt," 24, Memphis, Tennessee

Calvin Myers, a/k/a "CJ," 20, Memphis, Tennessee

Antonio Worles, a/k/a "Joe," 19, Memphis, Tennessee

Sandreka Wright, 34, Memphis, Tennessee

Delbert Harrison, a/k/a "Clay," 30, Henning, Tennessee

Sanitory Campbell, a/k/a "Toe," 43, Memphis, Tennessee

Antwan Miles, a/k/a "Twan," 20, Memphis, Tennessee

Darnell Ward, a/k/a "D," 37, Memphis, Tennessee

Amanda Harrison, 35, Henning, Tennessee

Alberto Chavoya, 34, Memphis, Tennessee

Daryl Mason, a/k/a/ "D," 28, Memphis, Tennessee

Tim Scotto, 53, Cordova, Tennessee

Sergio Lopez, 34, Compton, California

Count 1 charges Jarvis Cooper; Terence Harper; Jackie Arnold; Pamela Perkins; Joseph Newberry; Anthony Jones; Calvin Myers; Antonio Worles; Darnell Ward; Antwan Miles; Sandreka Wright; Amanda Harrison; and Sanitory Campbell with knowingly possessing firearms in furtherance of drug trafficking crimes; knowingly using and carrying firearms during and in relation to drug trafficking crimes.

Count 2 charges Jarvis Cooper; Terence Harper; Darnell Ward; Joseph Newberry; Anthony Jones; Calvin Myers; Antonio Worles; Antwan Miles; Amanda Harrison; Sandreka Wright; Delbert Harrison; Alberto Chavoya; Daryl Mason; Tim Scott; Sergio Lopez and Sanitory Campbell with the intent to distribute over 50 grams of methamphetamine, a Schedule II controlled substance.

Count 3 charges Terence Harper; Darnell Ward; Sergio Lopez; Sanitory Campbell and others with the intent to distribute over one kilogram of a mixture and substance containing a detectable amount of heroin, a Schedule I controlled substance.

Count 4 charges Terence Harper; and Jackie Arnold with the intent to distribute over 5 kilograms of a mixture and substance containing a detectable amount of cocaine, a Schedule II controlled substance.

Count 5 charges Terence Harper, Jackie Arnold and Sanitory Campbell with the intent to distribute over 50 kilograms of marijuana.

Count 6 is redacted at this time as the defendant is not in custody.

Count 7 is redacted at this time as the defendant is not in custody.

Count 8 charges Darnell Ward with knowingly possessing in and affecting interstate commerce a firearm, Taurus Millennium 9mm pistol.

Count 9 charges Terence Harper with knowingly possessing in and affecting interstate commerce a firearm, Ruger SR9C 9mm pistol and a Beretta PX4 Storm .45-caliber pistol.

Count 10 charges Jackie Arnold with knowingly possessing in and affect interstate commerce a firearm, FNS .40 caliber pistol.

Count 11 is redacted at this time as the defendant is not in custody.

Count 12 charges Jarvis Cooper; Antonio Worles; Joseph Newberry and Antwan Miles and others with knowingly and intentionally carrying a firearm, that is: a .380 caliber pistol, during and in relation to a drug trafficking crime; conspiracy to possess with the intent to manufacture and distribute a controlled substance.

Count 13 charges Darnell Ward with knowingly possessing a firearm in furtherance of and in relation to a drug trafficking crime with intent to distribute a controlled substance.

Count 14 charges Terrence Harper and Jackie Arnold with conspiracy to possess with intent to distribute a controlled substance.

Count 15 charges Terrence Harper with intentionally possessing a firearm, Beretta PX4 Storm .45 caliber pistol, which had transported in interstate commerce.

Count 16 charges Jarvis Cooper with intent to distribute and distribution of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.

Count 17 charges Jarvis Cooper with intent to distribute and distribution of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.

Count 18 charges Jarvis Cooper with intent to distribute and distribution of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.

Count 19 charges Jarvis Cooper with intent to distribute and distribution of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.

Count 20 charges Jarvis Cooper; Darnell Ward; Calvin Myers and Anthony Jones with intent to distribute and distribution ofa mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.

Count 21 charges Jarvis Cooper; Darnell Ward; Calvin Myers and Anthony Jones with knowingly possessing a firearm in furtherance of and in relation to a drug trafficking crime, with intent to distribute a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance.

Count 22 charges Sandreka Wright and Darnell Ward with the intent to promote the carrying on of specified unlawful activity that is knowing that the property involved in the financial transaction represented the proceeds of some form of unlawful activity, in violation of Title 18.

Currently 7 defendants indicted remain at large and are not listed in this release.

The United States also seeks criminal forfeiture of $1,000,000 in U.S. currency, both jointly and severally from Jarvis Cooper; Pamela Perkins; Terence Harper; Jackie Arnold; Darnell Ward; Joseph Newberry; Antwan Miles; Amanda Harrison; Anthony Jones; Calvin Myers; Antonio Worles; Sandreka Wright; Delbert Harrison; Alberto Chavoya; Sanitory Campbell; Daryl Mason; Tim Scott and Sergio Lopez.

During this investigation, agents seized approximately $90,000 in U.S. currency, 40 pounds of methamphetamine, two kilograms of heroin, four kilograms of cocaine, 11 ounces of crack cocaine, over 150 pounds of marijuana and 22 firearms. If convicted, the defendants face mandatory minimum sentences of 10 years imprisonment up to life.

The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, Memphis Police Department, Multi Agency Gang Unit and Shelby County Sheriff’s Office investigated this case.

Assistant U.S. Attorney Jerry Kitchen is prosecuting this case on the government’s behalf.

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

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Memphis, TN – A Memphis man has been sentenced to 180 months in federal prison for trafficking narcotics, possession with intent to distribute and manufacture controlled substances and being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, in March 2015, Duane Anthony Rouch, 53, purchased narcotics from underground websites designed to enable users across the world to buy and sell illegal drugs and other illicit goods and services anonymously outside the reach of law enforcement. To purchase narcotics on the "Dark Web" Rouch used "cryptocurrency," a form of payment used to conceal the identity of the buyer and seller using third-party vendors.

In March 2015, Rouch received a package from China containing a pill mold. From 2015 until December 2016, he received packages containing microcrystalline cellulose, a binding agent used to manufacture pharmaceutical pills. The defendant ordered online from China and Canada and had the packages shipped on ten occasions to a warehouse address in Memphis, Tennessee.

U.S. Attorney D. Michael Dunavant said: "In order to stem the rising tide of violence, addiction, and overdoses that are tearing our communities apart, we must focus on the dangerous supply of illegal narcotics flowing into West Tennessee by individuals and organizations who manufacture and distribute illegal drugs in order to unlawfully enrich themselves. This case demonstrates our resolve to hold drug traffickers responsible by the use of mandatory minimum sentencing under federal law, and sends a strong message: If you sow misery, addiction, and violence into our communities by distributing poison to our citizens, you will reap the certain consequences of a long federal prison sentence."

On September 16, 2016, Memphis Homeland Security ("ICE") Agents received information from U.S. Customs and Border Protection ("CBP") about a Canadian company shipping contraband to Memphis, Tennessee. This company transships contraband from China to the United States and supplies pill presses and chemicals for producing counterfeit pills or tablets. Furthermore, CBP Officers provided that at least ten shipments had been forwarded to the warehouse in Memphis, Tennessee.

In December 2016, Officers with the Shelby County Sheriff’s Office obtained a state search warrant for the warehouse to search for illicit narcotics. Law enforcement found an unloaded Lorcin 9 millimeter pistol, iPhone 6, pill press covered in residue, several mixing containers and utensils coated with white powder, drug paraphernalia – methamphetamine pipes, scales, presses, Xanax pills, lab mixing utensils, and materials used to manufacture methamphetamine – and more than 5 grams of methamphetamine in a mail parcel. The search of Rouch’s iPhone 6 revealed multiple photos/videos consistent with drug trafficking. At the time of the search, Rouch was on parole for multiple felony offenses.

On Tuesday, September 5, 2017, a federal jury convicted Rouch of one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute alprazolam, one count of conspiracy to commit the trafficking of narcotics and one count of felon in possession of a firearm. He was subject to a mandatory minimum sentence of 10 years on the methamphetamine related offenses.

On Monday, February 5, 2018, U.S. District Court Judge John T. Fowlkes Jr., sentenced Rouch to 15 years imprisonment.

This case was investigated by the Border Enforcement Security Team, which consists of federal agents from the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service and local law enforcement offices. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives assisted in the investigation.

Special Assistant U.S. Attorney Bryce Phillips prosecuted this case on the government’s behalf.

Memphis, TN – A federal grand jury has indicted a Memphis man with possession of a firearm after being convicted of a misdemeanor crime of domestic violence. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictment today.

On Thursday, January 25, 2018, a federal grand jury returned an indictment against Jeremy Shields, 25, for possession of a firearm after being convicted of a misdemeanor crime of domestic violence. This charge is based on the possession of a firearm that resulted in injuries to Shields’ three-year-old son.

On May 7, 2017, officers of the Memphis Police Department responded to Methodist South Hospital, where a three-year-old victim was being treated for a single gunshot wound and in critical condition. The child was later stabilized and sent to LeBonheur Children’s Hospital, where he underwent additional surgeries to save his life.

Investigators discovered that the shooting occurred in Shields’ apartment in the Presidential West Apartments, located on the 5400 block of Hudgins Road. Shields told investigators that he kept a Smith & Wesson .45 caliber pistol in the apartment. The serial number of the pistol was obliterated.

U.S. Attorney D. Michael Dunavant said: "Based upon Attorney General Sessions’ announced priority for violent crime reduction, this office has resolved to be more aggressive and creative in using all of the applicable federal statutes to charge firearms offenses by prohibited persons and this case is a prime example of that commitment. I want to commend our law enforcement partners as we continue to work together to bring to justice those causing havoc throughout the Western District of Tennessee by the illegal use and possession of firearms. As this indictment demonstrates, if you are intent on committing crimes with a firearm in this district, rest assured you will be brought to justice. Gun Crime is Max Time."

If convicted, Shields faces a maximum of 10 years imprisonment; $250,000 fine and a maximum of 3 years supervised release to begin after incarceration.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

This case was investigated by the Memphis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Special Assistant U.S. Attorney Bryce Phillips is prosecuting this case on the government’s behalf.

 

Jackson, TN – Four West Tennessee residents have been indicted on conspiracy to distribute 280 grams or more of cocaine base (crack cocaine); distribution of and possession with the intent to distribute crack cocaine; and conspiracy to commit money laundering. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictment today.

The West Tennessee Drug Task Force from the 28th Judicial District and the Tennessee Bureau of Investigation conducted a 22-month investigation of the Calvin Cole Drug Trafficking Organization operating in Crockett and Madison counties. A federal grand jury in Jackson, Tennessee, returned the indictment on January 16, 2018, but the indictment remained under seal until the arrests on February 1, 2018. The indictment contained counts alleging violations of the federal Controlled Substances Act and money laundering statute.

United States Attorney D. Michael Dunavant said: "This indictment and takedown represents another great example of law enforcement working together to dismantle drug trafficking organizations and remove criminals from the Western District of Tennessee. We will not tolerate illegal drug activity disrupting the daily lives of citizens in our small communities, and we will hold accountable those offenders who distribute poison in our district. This is a high impact case that will improve public safety and the quality of life in our rural counties."

The suspects arrested during the operation were:

Calvin "Fathead" Cole, 43, Jackson, Tennessee

Tony "Bone" Douglas, 42, Jackson, Tennessee

Arvis "Shorty" Ball, 55, Alamo, Tennessee

Bob Terry, 65, Bells, Tennessee

Over 100 agents and officers from 15 agencies served 13 search warrants simultaneously. Multiple agencies assisted throughout the investigation, including the Crockett County Sheriff’s Department, TBI Aviation Unit, the 28th Judicial District Attorney’s Office, Jackson-Madison County Metro Narcotics, the 26th Judicial District Attorney’s Office, the Drug Enforcement Administration, the United States Marshal’s Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the West Tennessee Drug Task Force – 30th Judicial District and Interstate Interdiction Unit, Tennessee Department of Revenue, the Tennessee Alcoholic Beverage Commission, Gibson County SWAT, Humboldt SWAT, Milan P.D. SWAT, Jackson P.D. SWAT, Madison County SWAT, Jackson P.D. Aviation Unit, Jackson P.D. Gang Enforcement Unit, Jackson P.D. Street Crimes, Jackson P.D. Bomb Unit, Tennessee Army National Guard, and ROCIC. Humboldt General Hospital assisted as well.

Assistant U.S. Attorney Beth C. Boswell of the Western District of Tennessee is prosecuting this case on the government’s behalf.

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Memphis, TN – Memphis Operator, LLC d/b/a Spring Gate Rehabilitation and Healthcare Center will pay $500,000 to the United States and the State of Tennessee to resolve allegations of false claims to Medicare and Tenncare for services rendered to residents of Spring Gate that were materially substandard, worthless and were provided in violation of certain essential requirements that the United States expects skilled nursing facilities to meet.

The Complaint alleged that from 2012 to 2015, Spring Gate provided substandard and worthless nursing home services to residents. Under federal and state law, Medicare and Tenncare will not pay for services deemed to be so deficient that they are essentially worthless.

The allegations resolved in this settlement were first raised in a lawsuit filed against Spring Gate under the qui tam provisions of the False Claims Act, which permits parties to sue on behalf of the government for the submission of false claims and share in the recovery. The False Claims Act, 31 U.S.C. §§ 3729-3733, provides the United States with a cause of action against any person or entity that knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval.

The case was captioned United States of America and the State of Tennessee ex rel. Chris Godwin v. Memphis Operator, LLC (d/b/a Spring Gate Rehabilitation and Healthcare Center). Vericare Management, Inc. and PharMerica Corporation, No. 2:15-cv-2090 (W.D.Tenn.). During the investigation of this matter, Spring Gate cooperated with the United States and the State of Tennessee in bringing this matter to a resolution.

"Residents of nursing homes are some of our most vulnerable citizens. When nursing homes break the law by defrauding the government for substandard or worthless services we will use our resources to combat this fraud and hold them accountable," said D. Michael Dunavant, United States Attorney for the Western District of Tennessee.

"Protecting the health and safety of Medicare patients is one of our primary concerns," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "Nursing facilities that fail to meet minimum quality standards can expect to pay a heavy price for neglecting their residents."

In addition to the $500,000 settlement, Spring Gate entered into a Corporate Integrity Agreement with the Department of Health and Human Services’ Office of Inspector General intended to deter future wrongful conduct.

This investigation was conducted by the United States Department of Health and Human Services Office of the Inspector General, the Tennessee Bureau of Investigation and the Tennessee State Attorney General’s Office.

Assistant United States Attorneys Stuart J. Canale and Matt Waldrop and Steve Jobe, Senior Counsel for the Tennessee Attorney General prosecuted this case on the government’s behalf.

Memphis, TN – Jacqueline DeAvila Montoya, 23 and Selene Yanira Castillo-Meraz, 19, pleaded guilty to federal charges of distribution of heroin and conspiracy to distribute heroin. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the guilty pleas today.

According to the information presented, on October 4, 2017, Montoya and Castillo-Meraz were charged with conspiracy to distribute heroin and distribution of heroin in a 4-count indictment handed down by a federal grand jury in Memphis.

United States Attorney D. Michael Dunavant said: "Our nation and our district are suffering from the heroin and opioid epidemic, causing increases in drug trafficking, violence, addiction, and overdose deaths that are tearing our communities apart. This office will use every available resource to prioritize cases involving the distribution of heroin, and to disrupt and dismantle drug trafficking organizations that deliver this deadly poison to citizens in the Western District of Tennessee".

On September 7, 2017, the two women were stopped for speeding on Interstate 40 in Memphis. A subsequent search of their vehicle revealed over 18 pounds of heroin and other illegal narcotics. The defendants were bringing the drugs from California through Tennessee on their way to a delivery in New York City. David Silva Garcia has been identified as another co-conspirator from California, and is currently under indictment in Memphis for his role in the drug trafficking organization.

At the plea hearing, the two women pleaded guilty to Counts 1 and 3 of the indictment for trafficking heroin. They each face a mandatory minimum of 10 years imprisonment.

This case was investigated by the West Tennessee Drug Task Force, an arm of the Shelby County District Attorney’s Office; and the Drug Enforcement Administration in Memphis along with their DEA partners in Riverside, California, New York City and Mexico City.

Assistant U.S. Attorney Joseph F. Griffith is prosecuting this case on the government’s behalf.

 

Memphis, TN – On January 11, 2018, a federal grand jury charged one defendant with defrauding the federal Supplemental Nutrition Assistant Program ("SNAP"), formerly known as the food stamp program. United States Attorney D. Michael Dunavant announced the indictment today.

According to the indictment, from at least January 2015 through April 2017, Guy Randal Stockard, 59, a/k/a/ "Randy," owned and operated Southern Meat Market, a small retail meat market in Memphis, Tennessee. Southern Meat Market was authorized to accept federal SNAP benefits from customers as payment for eligible food items. Customers could access and redeem their benefits using Electronic Benefits Transfer ("EBT") cards.

During that same period, Stockard allegedly used Southern Meat Market to conduct fraudulent SNAP benefit transactions with an estimated total value of at least $1.2 million. To carry out the fraud, Stockard bought customers’ SNAP benefits at a discount in exchange for cash. Stockard then redeemed those SNAP benefits at their full monetary face value.

Stockard is charged with one count of conspiracy to commit SNAP benefit fraud and theft of government property, one count of SNAP benefit fraud, and one count of theft of government property.

If convicted, the defendant faces a maximum of 20 years imprisonment, a $250,00 fine and 3 years supervised release. The United States is also seeking criminal forfeiture in this case.

This case is being investigated by the United States Department of Agriculture - Office of the Inspector General and the United States Secret Service.

Assistant U.S. Attorney Murre Foster is prosecuting this case on the government’s behalf.

The charges and allegations in this indictment are merely accusations, and the defendant is innocent unless and until proven guilty.

 

Memphis, TN – After a two and a half-day trial, a jury has convicted two gang members of illegally possessing firearms. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the conviction today.

According to the information presented at trial, on May 27, 2017, detectives with the Multi-Agency Gang Unit were conducting patrols at the Breath of Life Christian Center, 3795 Raleigh-Frayser, during the funeral of a known gang member. While at the scene, detectives observed a silver Toyota Camry enter the church parking lot. The driver exited and three other occupants remained in the vehicle. Jamal Bowens, 19, was seated in the rear driver side seat, and Lee Hope, 21, in the rear passenger’s seat. The defendants are known gang members who regularly use controlled substances.

Detectives approached the vehicle and immediately smelled a strong odor of marijuana. Law enforcement also discovered a marijuana cigar located in the seat between Bowen and Hope and a Rossi .357 revolver on the floorboard under Bowen’s feet. The occupants were then removed from the car. Upon a search of Hope’s person, a stolen Smith and Wesson .40 caliber pistol was recovered.

U.S. Attorney D. Michael Dunavant said: "Based upon Attorney General Sessions’ announced priority for violent crime reduction, this office has resolved to be more aggressive and creative in using all of the applicable federal statutes to charge firearms offenses, and this case is a prime example of that commitment. I want to commend our law enforcement partners as we continue to work together to bring to justice those causing havoc throughout the Western District of Tennessee by the illegal use and possession of firearms. As this conviction demonstrates, if you are a gang member intent on committing crimes with a firearm in this district, rest assured you will be brought to justice. Gun Crime is Max Time."

The defendants face a maximum penalty of ten years in imprisonment and a $250,000 fine. Sentencing is set for April 27, 2018, before the Honorable Sheryl H. Lipman.

Lee Hope currently has cases pending for criminal attempt first-degree murder, in concert, and reckless endangerment with a deadly weapon in Shelby County Criminal Court.

Jamal Bowens has cases pending for aggravated robbery and criminal attempt first-degree murder in Shelby County Criminal Court.

This case was investigated by the Multi-Agency Gang Unit, Memphis Police Department, Shelby County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Marques Young is prosecuting this case on the government’s behalf.

Memphis, TN – A Shelby County, Tennessee, resident was sentenced to 12 months in prison today for evading payment of taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.

According to documents and information provided to the court, Andrea M. Henry, 45, owned the Henry Polk Dental Group D.P.C. and the Smile Spa LLC, dental practices located in Cordova, Tennessee. Henry filed personal income tax returns for 2005, 2006, 2008 and 2010 to 2013, but did not pay $113,781 in income and self-employment taxes due to the Internal Revenue Service (IRS). Henry also failed to pay over the employment taxes withheld from her employees’ paychecks for numerous quarters between 2006 and 2015. The IRS assessed over $160,000 in trust fund recovery penalties against Henry, making her personally liable for the unpaid employment taxes.

Instead of paying the taxes owed, Henry spent hundreds of thousands of dollars on personal expenses, including private school tuition, expensive housing, and luxury cars. After the IRS assessed penalties against her, Henry stopped using personal bank accounts and instead began using business accounts to pay for personal expenses. In early 2011, prior to her home being foreclosed on, Henry transferred $130,000 to a nominee buyer, entered a sham lease arrangement with the nominee to create a false explanation as to the source of the funds in the nominee’s bank account, and caused the nominee to repurchase the home for her. Henry later used that same nominee and other nominees to purchase and lease exotic cars, including a Dodge Viper and a Porsche Panamera. Henry admitted to causing a tax loss of $528,882.07.

In addition to the term of prison imposed, U.S. District Judge John T. Fowlkes, Jr. ordered Henry to serve three years of supervised release and to pay $653,116.78 in restitution.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney D. Michael Dunavant commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Damon Griffin of the Western District of Tennessee, who prosecuted the case.

A Shelby County, Tennessee, resident was sentenced to 12 months in prison today for evading payment of taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Michael Dunavant for the Western District of Tennessee.

 

According to documents and information provided to the court, Andrea M. Henry, 45, owned The Henry Polk Dental Group D.P.C. and The Smile Spa LLC, dental practices located in Cordova, Tennessee.  Henry filed personal income tax returns for 2005, 2006, 2008, and 2010 to 2013, but did not pay $113,781 in income and self-employment taxes due to the Internal Revenue Service (IRS).  Henry also failed to pay over the employment taxes withheld from her employees’ paychecks for numerous quarters between 2006 and 2015.  The IRS assessed over $160,000 in trust fund recovery penalties against Henry, making her personally liable for the unpaid employment taxes.

 

Instead of paying the taxes owed, Henry spent hundreds of thousands of dollars on personal expenses, including private school tuition, expensive housing, and luxury cars.  After the IRS assessed penalties against her, Henry stopped using personal bank accounts and instead began using business accounts to pay for personal expenses.  In early 2011, prior to her home being foreclosed on, Henry transferred $130,000 to a nominee buyer, entered a sham lease arrangement with the nominee to create a false explanation as to the source of the funds in the nominee’s bank account, and caused the nominee to repurchase the home for her.  Henry later used that same nominee and other nominees to purchase and lease exotic cars, including a Dodge Viper and a Porsche Panamera.  Henry admitted to causing a tax loss of $528,882.07. 

 

In addition to the term of prison imposed, U.S. District Court Judge John T. Fowlkes, Jr. ordered Henry to serve three years of supervised release and to pay $653,116.78 in restitution to the IRS.

 

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Dunavant commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Damon Griffin of the Western District of Tennessee, who prosecuted the case.

 

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

 

Memphis, TN –"The Department of Justice is comprised of about 40 components that have a broad array of national security, law enforcement, and criminal justice system responsibilities. Therefore, a significant portion of the Department’s mission relates to the safety of human life and the protection of property, and primarily for this reason, the Department has a high percentage of activities and employees that are excepted from the Anti-deficiency Act restrictions and can continue during a lapse in appropriations. The U.S. Attorney’s Office for the Western District of Tennessee is implementing the Contingency Plan of the Department of Justice to identify and furlough certain non-excepted employees during the period of the government shutdown. However, citizens can be assured that the essential federal law enforcement, criminal prosecution, and national security functions of this office will continue as usual in order to preserve and protect public safety in West Tennessee."

 Jackson, TN – A Gangster Disciple member was sentenced to 360 months imprisonment and five years of supervised release for conspiring to participate in a racketeering enterprise.

Attorney General Jeff Sessions, Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney D. Michael Dunavant of the Western District of Tennessee, Special Agent in Charge, Michael T. Gavin of the Federal Bureau of Investigation (FBI) and Acting Special Agent in Charge Jack Webb of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), made the announcement.

Byron Montrail Purdy, a/k/a "Lil B" or "Ghetto," 38, of Jackson, Tennessee, was sentenced by U.S. District Judge John T. Fowlkes, Jr. Purdy previously pleaded guilty to conspiracy to participate in racketeering activity.

United States Attorney D. Michael Dunavant said: "Attorney General Sessions has made it clear that the top priority for the Department of Justice is violent crime reduction, and here in the Western District of Tennessee, we are vigorously pursuing that priority by using the full complement of government resources and partnering with local and state law enforcement to disrupt racketeering conspiracies and dismantle criminal gangs. This case demonstrates our resolve to aggressively prosecute those who engage in organized criminal enterprises and gang conspiracies to commit violent crimes and narcotics and weapons offenses in furtherance of racketeering. This office is proud to work with our federal, state and local law enforcement partners to disrupt the Gangster Disciples gang and hold them accountable for the violence and lawlessness that they perpetrate across West Tennessee. The message from this case is clear: If you are a member of a criminal gang, your days are numbered, and there will be a reckoning."

The Gangster Disciples is a highly organized national gang active in more than 24 states. The scope of the Gangster Disciples’ crimes is wide-ranging and consistent throughout its national operation. The gang protects its power through threats, intimidation, and violence, including murder, attempted murder, assault, and obstruction of justice. Members and associates of the gang are subject to a strict code of discipline and are routinely fined, beaten, and even murdered for failing to follow the gang’s rules. The Gangster Disciples promotes its enterprise through member-only activities and provides financial and other support to members charged with or incarcerated for gang-related offenses or who are fugitives from law enforcement.

The highest-ranking Gangster Disciple within the State of Tennessee holds the title of "Governor." The Governor manages gang activities within Tennessee and is responsible for coordinating much of the criminal activity that occurs within the state.

Acting ATF Special Agent in Charge Jack Webb remarked, "ATFs priority of reducing violent crime is a result of the sentencing of the criminal element that have preyed on our communities. The collaborative efforts of law enforcement and the U.S. Attorney’s Office continue to provide a safe environment for the public."

"We focus our investigations on the leadership of the criminal organizations that sell and distribute illegal drugs and use violence against anyone who gets in their way," said Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "This sentencing is the result of the dogged efforts and precision investigating by the FBI and our law enforcement partners to disrupt and dismantle criminal organizations that prey on our communities."

According to his plea agreement, Purdy was a ranking member of the Gangster Disciples and at time of indictment and arrest on this case served as the Governor for the State of Tennessee. As the highest leader for the Gangster Disciples, Purdy directed other members and associates of the gang to carry out unlawful activities in furtherance of the conduct of the gang’s affairs. Purdy was responsible for coordinating criminal activities with other Gangster Disciples gang leaders throughout the United States, supervising the criminal activities of the gang, issuing orders to kill rivals and disobedient gang subordinates, and presiding over Gangster Disciples meetings.

Captain Phillip Kemper of the Jackson Police Department’s Special Operations Division said: "Today’s sentence of 30 years for Byron Purdy’s gang activity should send a serious warning to gang members of all factions in Jackson, Memphis and throughout West Tennessee that their continued reign of terror through actions of violence, intimidation, and all manner of firearms and narcotics trafficking will eventually come to an end. This investigation of Purdy included crimes involving racketeering activity, which spanned two and half decades. Byron Purdy, who was the head of the Gangster Disciple enterprise for the State of Tennessee will now spend the majority of his adult life in Federal Prison. Gang life only leads to two places: the grave, or prison for an extended period of time. Jackson, West Tennessee and the United States of America are safer places today as a result of this sentence."

Purdy also participated directly in the activities of the gang, including acts involving murder, kidnapping, assault, narcotics distribution, intimidation of witnesses, and weapons trafficking. Purdy’s participation in the criminal activities of the Gangster Disciples spanned approximately twenty years.

This case was investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); the Memphis Multi-Agency Gang Unit; Memphis Police Department; Shelby County Sheriff’s Office; Jackson Police Department Gang Enforcement Team; Tennessee Bureau of Investigation; Madison County Sheriff’s Department; 28th District West Tennessee Drug Task Force; Tipton County Sheriff’s Office; 26th Judicial District Attorney General’s Office; 25th Judicial District Attorney General’s Office; Atascosa County District Attorney’s Office; and the Shelby County District Attorney General’s Office.

Assistant U.S. Attorneys Beth Boswell of the Western District of Tennessee and Samuel Stringfellow of the Northern District of Mississippi and Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section are prosecuting this case on the government’s behalf.

###

 

Memphis, TN – The Western District of Tennessee will receive two additional federal prosecutors to combat violent crime in the district, announced United States Attorney D. Michael Dunavant.

As one of many steps Attorney General Sessions has announced to counter the surge in violent crime afflicting communities across our country, the Department of Justice is allocating 40 Assistant United States Attorney positions to U.S. Attorney’s Offices nationwide. These prosecutors will be solely focused on bringing violent criminals to justice through aggressive enforcement of federal laws.

The Western District of Tennessee is receiving two of the new dedicated positions. One of the additional prosecutors will be assigned to the Memphis office, and the other will be assigned to the Jackson office.

United States Attorney Dunavant said, "To those communities in the Western District that have been besieged by gangs and violent crime, I am thrilled to say that help is on the way. These dedicated prosecutors – working closely with our law enforcement partners – will help incapacitate violent offenders and remove them from our streets. I look forward to filling these slots promptly and putting these additional resources to work for the citizens of West Tennessee."

Violent crime is on the rise in Memphis and Jackson. For example, Memphis saw 228 murders and a major violent crime increase of 25% last year. And the violence is not confined to Memphis and Jackson. Other cities and communities in West Tennessee such as Dyersburg, Savannah, and Covington have also seen recent increases in these areas. These increases in violent crime led the Department to select Memphis and Jackson as two of the 12 cities in the National Public Safety Partnership (PSP). The Western District is the only district to have two cities selected for this program.

These two new AUSA positions will complement the Department’s ongoing enforcement efforts in West Tennessee. They will also be instrumental as the U.S. Attorney’s Office recommits to initiatives that have worked in the past to reduce violent crime, such as the Project Safe Neighborhoods program.

Memphis, TN – After eight days of trial before U.S. Senior District Judge Samuel H. Mays, a federal jury convicted Jeremy Drewery of one count of Hobbs Act Extortion; one count of Receipt of a Bribe by a Government Agent; and one count of Solicitation to Tamper with a Witness. United States Attorney D. Michael Dunavant announced the guilty verdict today.

Jeremy Drewery, 42, of Arlington, Tennessee, was indicted last September for attempting to extort thousands of dollars from an alleged drug dealer in August of 2016. In July, additional charges were added to the indictment, which alleged that the defendant solicited a person to kill the witness in the extortion case.

United States Attorney D. Michael Dunavant said: "Official misconduct and corruption by law enforcement officers in positions of trust and authority undermine the foundational integrity of our government institutions. We must root out, expose, and hold accountable those officials who violate the public trust by corrupt acts of extortion, bribery, and witness tampering, and this verdict does just that."

Drewery was assigned to the Shelby County Sheriff’s Office’s Narcotics Division at the time of these events, but has since been terminated from the department. The evidence at trial showed that after executing a search warrant on the home of an alleged drug dealer, Drewery demanded money from the man. In exchange, Drewery would not institute a criminal case on the man. The alleged drug dealer contacted the FBI, which began an investigation. Over the course of three weeks, Drewery met with the alleged drug dealer and received a total of $8,000. Each of the meetings and numerous phone calls between Drewery and the alleged drug dealer were recorded.

"Law enforcement corruption undermines the public trust and can threaten the overall safety of our community," said Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the Federal Bureau of Investigation. "The FBI holds, as one of its highest priorities, the investigation of corrupt members of law enforcement. This conviction is the result of the hard work and diligence of the honest law enforcement officers and agents of the Tarnished Badge Task Force, who like the overwhelming majority of law enforcement officers, put their lives on the line day in and day out to protect, serve, and maintain public trust."

The evidence at trial also showed that, after Drewery’s arrest on the attempted extortion, he paid a confidential informant $2,000 to solicit a person to kill the alleged drug dealer.

Sentencing is scheduled for Friday, March 30, 2018, before U.S. Senior District Judge Mays. Drewery faces up to 20 years in federal prison and a fine of up to $250,000.

This case was investigated by the Tarnished Badge Task Force, which is comprised of investigators from the FBI, Memphis Police Department and the Shelby County Sheriff’s Office.

Assistant U.S. Attorneys Reagan M. Taylor and Mark Erskine are prosecuting this case on the government’s behalf.

Memphis, TN – D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced today that 20 individuals have been indicted for working under false identities.

On November 28, 2017, law enforcement arrested 20 illegal aliens working under false identities. A Memphis employment agency, Provide Staffing, assigned multiple employees to Expeditors International, a freight forwarder based in Memphis.

In the course of their regular duties, Transportation Security Administration inspectors in Memphis noticed anomalies in Security Threat Assessment paperwork submitted on behalf of Provide Staffing workers on contract to Expeditors International, and referred their findings to Immigration and Customs Enforcement and the Tennessee Department of Safety and Homeland Security.

Tennessee Highway Patrol’s (THP) Criminal Investigative Division investigated and arrested these 20 individuals on state charges. ICE Homeland Security Investigations conducted a parallel investigation in coordination with TSA and other law enforcement agencies.

As a result of that investigation, the defendants are alleged to have presented fraudulent documents, between March 2016 and January 2017, to certify their identity and eligibility to work in the United States.

The Immigration and Reform Act of 1986, amended, and the Immigration and Nationality Act together require employers to verify the identity and employment eligibility of their employees using a prescribed form, Form I-9, and require that employees present documents to verify their identity and eligibility to work in the United States. Each defendant is charged with knowingly using a false identification document as evidence of

his or her employment eligibility, in violation of Title 18, United States Code, Section 1546 (a) or Section 1546(b) (2).

United States Attorney D. Michael Dunavant said: "In April, the Attorney General announced a renewed commitment by the Department of Justice to consistently and vigorously pursue criminal immigration enforcement, in order to disrupt organizations and deter unlawful conduct. This priority includes the aggressive prosecution of aggravated identity theft, document fraud, and misuse of visas and permits in the immigration context. These indictments fulfill that priority, protect critical infrastructure sites, and promote lawfulness in our immigration system."

"Individuals that utilize fraudulent identification to obtain restricted access to our nation’s transportation network, whether air, sea, or rail, create a vulnerability to our national supply chain," said Assistant Special Agent in Charge Robert Hammer, who oversees HSI’s efforts in Tennessee. "HSI will continue to partner with our federal and state law enforcement partners to protect our critical infrastructure from exploitation."

The 20 defendants indicted on federal charges include:

Jamie Ramundo Martinez, a/k/a/ Angel Martinez, 36, Guatemala
Pedro Garcia-Guaneros, a/k/a/ Pedro Garcia, 34, Mexico
Oscar Tepole-Sanchez, a/k/a/ Oscar Tepole, 36, Mexico
Hilda Hernandez-Garduno, a/k/a/ Hilda Hernandez, 37, Mexico
Angel Calmo-Aguilar, a/k/a/ Angel Calmo, 24, Guatemala
Edgar Lopez-Marin, a/k/a/ Edgar Lopez, 37, Mexico
Fernando Ramos-Jacobo, a/k/a/ Fernando Ramos, 27, Mexico
Willivaldo Arenales-Soriano, a/k/a/ Wilibaldo Arenales, 35, Mexico
Fernando Alexi Duran-Reyes, a/k/a/ Eduardo Duran, 43, Honduras
Ramon Paz-Peredes, a/k/a/ Ramon Paz, 47, Honduras
Josue Vaca-Alvarodo, a/k/a/Pedro Cordero, 41, Honduras
Arturo Robles-Larios, 36, Mexico
Sixto Landaverde-Rodriguez, a/k/a/ Sixto Rodruguez, 42, Mexico
Rodolfo Hernandez-Sanchez, a/k/a/ Leonel Sanchez, 37, Mexico
Henry Calmo-Aguilar, a/k/a/ Henry Calmo, 22, Guatemala
Eligio Lopez-Acevedo, 34, Mexico
Artemio Moreno-Gordillo, a/k/a/ Artemio Moreno, 44, Mexico
Jose Moreno-Martinez, 25, Mexico
Marlon Martinez-Martinez, a/k/a/ Marlon Martinez, 36, Honduras
Raquel Delin-Ramos, a/k/a/ Raquel Delin, 32, Mexico

If convicted, the defendants face a maximum five years imprisonment; $250,000 fine and 3 years supervised release to begin after incarceration.

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

These cases were investigated by the Homeland Security Investigations, Transportation Security Administration and Tennessee Highway Patrol. Assistant U.S. Attorney Lauren Delery is prosecuting this case on the government’s behalf.

WHAT: D. Michael Dunavant, United States Attorney Western District of Tennessee, and Robert Hammer, Assistant Special Agent in Charge, Homeland Security Investigations, will make an announcement regarding the Department of Justice’s investigation into Criminal Immigration Enforcement. DATE: Wednesday, December 13, 2017 TIME: 3:30 p.m. WHERE: United States Attorney’s Office – Main Conference Room
Clifford Davis Odell Horton Federal Building
167 North Main Street, Suite 800
Memphis, TN 38103

NOTE: All media members must present government-issued photo I.D. (such as driver’s license), as well as valid media credentials.

Media are requested to RSVP to Cherri.Green@usdoj.gov. The conference room will be available for media to set up at 2:30 p.m. Everything must be pre-set by 3:00p.m. Press inquiries regarding logistics should be directed to Cherri Green at 901-969-2948.

Memphis, TN – Patricia Parsons, 50, of Brighton, Tennessee, was sentenced to sixty months in federal prison for aiding and abetting solicitation to commit kidnapping. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence today.

According to the facts revealed during the plea hearing in September 2017, from February 2017 through May 2017, Parsons conspired with Suzanne Holland, a self-appointed Chief Justice of the Universal Supreme Court of the Tsilhquot’ in Nation in Canada, to kidnap a Tipton County judge and a Nebraska sheriff.

United States Attorney D. Michael Dunavant said: "The U.S. Attorney’s Office takes any threats against law enforcement, the courts and public officials very seriously. The defendant’s disturbing conduct in this potentially violent case strikes at the very heart of our justice system, and we are pleased that she has been held accountable for her role in this unusual kidnapping attempt."

On January 10, 2017, Michael Parsons (the defendant’s husband) was scheduled to appear in state court in Tipton County, Tennessee on two counts of being a felon in possession of a firearm. Mr. Parsons did not show up for court, removed the ankle monitor and fled the jurisdiction. Two days later, he was located and arrested in a small airport in Arapahoe, Nebraska after flying himself there in a plane.

On February 16, 2017, FBI New Orleans received information that Suzanne Holland, self-appointed Chief Justice of the Universal Supreme Court of the Tsilhqot’ in Nation in Canada, was attempting to hire a bounty hunter to kidnap Sheriff Kurt Kapperman of Furnas County, Nebraska and Judge Joseph Walker of Tipton County, Tennessee and to break Mr. Parsons out of jail. Ms. Holland contacted an FBI Confidential Source in New Orleans, Louisiana and solicited the source to execute what were purported to be duly-

issued "arrest warrants" for the sheriff and judge issued by the Tsilhqot’ in Nation. Holland emailed "arrest warrants" to the source along with an "order to release Michael Parsons from jail." Further investigation revealed that the Tsilhqot’ in Nation was a Sovereign Citizen Group located on the Indian reservation in British Columbia, Canada.

On February 17, 2017, Ms. Holland provided a telephone number for the source to facilitate further discussions. FBI Memphis determined this number to be that of Mr. Parson’s wife, defendant Patricia Parsons.

Based on initial telephone conversations, Ms. Holland and the source agreed to draft a contract, signed by both parties, describing duties and payments. A final negotiated price of $250,000 was agreed upon for the arrest of the sheriff and judge and the facilitating release of Mike Parsons from jail. Mike Parsons was described as an Associate Justice of the Tshilhqot’ in Nation.

On February 23, 2017, the source and Ms. Holland agreed on an initial payment of $5,000 to begin arranging all travel and other details related to the operation. Holland told the source that Patricia Parsons would have the money and be available to meet in Memphis. On March 6, 2017, the source advised Holland that a business associate would meet Patricia Parsons to coordinate the payment. An amended contract was drawn up and signed by both parties. The source then contacted Patricia Parsons to discuss the transaction.

On March 3, 2017, Ms. Holland requested the source to accept a Corvette in lieu of the $5,000 payment. The Corvette was owned by the Parsons and located on Patricia Parsons’ property in Brighton, Tennessee. In telephone conversations, Patricia Parsons advised that the Corvette had some problems but was worth approximately $7,000. Three days later, during a series of phone calls, the source advised the defendant that an associate was traveling to the Parsons’ property to complete the payment transaction.

Further the source explained to Parsons what the overall operation would entail, including: selling the vehicle to help fund the operation; breaking Mr. Parsons out of jail; kidnapping the Tennessee judge (who was scheduled to preside over her husband’s impending trial) and the Nebraska sheriff; using the plane to transport the abducted individuals to Holland in Canada; and using 30 operatives divided into two teams to accomplish these objectives.

During these calls, defendant Parsons advised that her phone was tapped by the FBI and agreed to call the source on another phone. The defendant called on a different line and indicated that she was ok with the source taking the vehicle and using the plane in Nebraska "as long as the FBI don’t come knockin at my door again." The source explained that the operatives would need to go to Canada because "once we kidnap a judge and a sheriff, our heads are gonna be on the choppin block… and once we do what we gotta do we can never come back." After these discussions, the defendant agreed to meet one of the operatives to complete the transaction.

On March 6, 2017, an undercover FBI employee posing as an associate of the source exchanged phone calls with the defendant and subsequently met at her residence in Brighton, Tennessee to obtain the Corvette. Due to the fact that the Corvette was inaccessible at the residence, the defendant agreed to provide the associate a 1991 Ford Ranger truck as the down payment for the operation. Parsons could not find the title but signed a note transferring ownership of the vehicle and gave the associate keys to the truck.

Between March 11 and March 15, 2017, the associate made three separate telephone calls to Parsons in order to gain further information on Tipton County Judge Joseph Walker. The associate asked about an address and photo of the judge’s house. The defendant responded that she did not know the specific address but that the judge’s name was "Joseph Walker III" and advised that he was located in Ripley, Tennessee in Lauderdale County. She also agreed to find out more information on the judge. On another call, the defendant advised the associate about a Ripley P.O. Box for the judge and stated he presided over courts in Tipton, Lauderdale, Hardeman, Fayette and one other county. At no time did Parsons attempt to notify any authorities of the impending plot to kidnap a sheriff and judge and free Mr. Parsons from jail.

On December 12, 2017, U.S. District Judge Sheryl H. Lipman sentenced Parsons to 60 months imprisonment and two years’ supervised release to begin after her term of incarceration.

This case was investigated by the FBI’s Joint Terrorism Task Force. Assistant U.S. Attorney Stephen Hall prosecuted this case on the government’s behalf.

Memphis, TN – A federal grand jury returned an indictment against a former data entry clerk for Crescent Medical Corporation, U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced today.

According to the indictment, Gloria Harris, 55, was employed as a data entry clerk at Crescent Medical Corporation, which was solely owned by Dr. Ahsan Kathawala. The indictment alleges that between January 2016 and March 2017, Harris fraudulently obtained $292,500 by stealing checks payable to Crescent and depositing them to bank accounts at Trustmark Bank and Suntrust Bank which she had fraudulently opened in the name of Crescent without Dr. Kathawala’s knowledge or authorization.

In addition to the bank fraud charge associated with the scheme to deposit the stolen checks, the indictment also alleges that Harris fraudulently used Social Security Numbers which did not belong to her to update a residential apartment lease and to open bank accounts at Trustmark and Suntrust.

Harris faces up to 30 years’ imprisonment; a one million dollar fine and 5 years supervised release on the bank fraud charge. Each charge of fraudulent use of Social Security Number carries a maximum penalty of 5 years’ imprisonment; a $250,000 fine and 3 years supervised release.

This case was investigated by the United States Secret Service Economic Crimes Task Force. Assistant U.S. Attorney Carroll L. Andre’ III is prosecuting this case on the government’s behalf.

Memphis, TN – A former InSouth bank employee was sentenced by United States District Judge Sheryl H. Lipman to serve 33 months in federal prison in connection with her embezzlement of $890,000.  D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.

 

Lauren Melissa McDivitt, 41, of Covington, Tennessee pled guilty in August to charges filed by the U.S. Attorney’s Office that she embezzled $888,470 between 2006 and 2016, while employed as Branch Administrator at InSouth’s Atoka, Tennessee branch.

 

According to information presented in court at the time of her plea, McDivitt accomplished the theft by creating false and fraudulent withdrawal tickets to make it appear that bank customers with IRA and CD accounts were withdrawing funds.  To conceal theft, McDivitt signed customers up to receive monthly statements online via email, and linked the customer accounts to a dummy/fake e-mail account where the statements, which reflected the unauthorized withdrawals, would be e-mailed.

 

McDivitt thereafter prepared fraudulent monthly statements, which reflected interest accrued, but omitted her unauthorized withdrawals.  McDivitt mailed the fraudulent statements to the customers.  In some instances, McDivitt also made internal transfers between accounts on various customers to cover amounts she had taken from other customers.

 

U.S. Attorney D. Michael Dunavant said: “The long term financial fraud and embezzlement committed by the defendant is disturbing and far-reaching.  The abuse of her position of trust and authority as a small town bank manager for her own personal gain had a significant negative impact on the employees and customers of InSouth Bank, as well as the whole Atoka and Tipton County community.  The U.S. Attorney’s Office places a high priority on protecting the security, deposits and assets of financial institutions, and this sentence demonstrates that commitment.”

 

As part of her sentence, McDivitt was also ordered to pay restitution in the amount of $947,951.30 to InSouth Bank and to serve a period of 3 years of supervised release to begin after her incarceration.

 

This case was investigated by the Atoka, Tennessee Police Department and the Federal Bureau of Investigation. 

 

Assistant U.S. Attorney Carroll L. Andre’ III prosecuted this case on the government’s behalf.

Memphis, TN – On Friday, December 8, 2017, a Memphis staffing company operator was convicted by a federal jury for conspiring to defraud the United States, failing to pay over employment taxes, filing fraudulent employment tax returns, theft of government funds and aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.

According to information presented in court, from 2005 through 2015, Mark Stinson and his wife, Jayton Stinson, operated a temporary staffing company in Memphis that provided services to businesses in Tennessee and elsewhere. The staffing company’s standard contract with its customers provided that the staffing company was responsible for withholding employment tax from its employees’ wages and paying over the amounts withheld to the Internal Revenue Service (IRS).

The Stinsons failed to pay over $2.8 million in withholdings and other employment taxes due to IRS, failed to timely file employment tax returns and filed false employment tax returns. In an effort to avoid making payments to the IRS the Stinsons changed the name and structure of the company multiple times after accumulating employment tax liabilities, operating as Connex Staffing and Janitorial Service, Connexx Staffing Services LLC, Connexx Staffing Services Inc., and Complete Employment Agency.

The Stinsons also conspired to impede efforts by the IRS to collect on the employment tax liabilities owned by their companies. For example, the Stinsons made false representations to the IRS about their control of the staffing company and their knowledge of their responsibility to truthfully account for and pay over the employment taxes, placed the staffing company in the names of nominees who did not have control over the business operations, and established payment arrangements intended to impede an IRS levy placed on their customer payments. The Stinsons used the withheld funds to pay for personal expenses, including a Mercedes-Benz, a Cadillac Escalade, mortgage

payments and private school tuition for their children. Jayton Stinson previously pleaded guilty to conspiracy charges in connection with this case.

Mark Stinson also filed a fraudulent tax return for a relative that included a false dependent seeking a refund to which the relative was not entitled. Stinson received a substantial portion of the fraudulent refund.

U.S. District Court Judge John T. Fowlkes, Jr., scheduled sentencing for March 1, 2018. Mark Stinson faces a statutory maximum sentence of five years in prison for each count of conspiracy, theft of government funds and failing to pay over employment taxes, three years in prison for each count of filing a false tax return, and a mandatory two years in prison for aggravated identity theft. He also faces a period of supervised release, restitution and monetary penalties. Jayton Stinson is scheduled to be sentenced on January 31, 2018.

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Dunavant commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Damon Griffin and Trial Attorney Nathan Brooks, who are prosecuting the case.

A Tennessee temporary staffing company officer was convicted today by a federal jury in Memphis of conspiring to defraud the United States, failing to pay over employment taxes, filing fraudulent employment tax returns, theft of government funds and aggravated identity theft, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney D. Michael Dunavant for the Western District of Tennessee. 

 

According to the evidence presented at trial, from 2005 through 2015, Mark Stinson and his wife, Jayton Stinson, operated a temporary staffing company in Memphis that provided services to businesses in Tennessee and elsewhere. The staffing company’s standard contract with its customers provided that the staffing company was responsible for withholding employment tax from its employees’ wages and paying over the amounts withheld to the Internal Revenue Service (IRS).

 

The Stinsons failed to pay over $2.8 million in withholdings and other employment taxes due to IRS, failed to timely file employment tax returns and filed false employment tax returns.  In an effort to avoid making payments to the IRS the Stinsons changed the name and structure of the company multiple times after accumulating employment tax liabilities, operating as Jayton Stinson Connex Staffing & Janitorial Service, Connexx Staffing Services LLC, Connexx Staffing Services Inc., and Complete Employment Agency.

 

The Stinsons also conspired to impede efforts by the IRS to collect on the employment tax liabilities owed by their companies. For example, the Stinsons made false representations to the IRS about their control of the staffing company and their knowledge of their responsibility to truthfully account for and pay over the employment taxes, placed the staffing company in the names of nominees who did not have control over the business operations, and established payment arrangements intended to impede an IRS levy placed on their customer payments. The Stinsons used the withheld funds to pay for personal expenses, including a Mercedes-Benz, a Cadillac Escalade, mortgage payments and private school tuition for their children. Jayton Stinson previously pleaded guilty to conspiracy charges in connection with this case. 

 

Mark Stinson also filed a fraudulent tax return for a relative that included a false dependent seeking a refund to which the relative was not entitled.  Stinson received a substantial portion of the fraudulent refund.  

   

U.S. District Court Judge John T. Fowlkes, Jr. scheduled sentencing for March 1, 2018.  Mark Stinson faces a statutory maximum sentence of five years in prison for each count of conspiracy, theft of government funds and failing to pay over employment taxes, three years in prison for each count of filing a false tax return, and a mandatory two years in prison for aggravated identity theft.  He also faces a period of supervised release, restitution and monetary penalties.  Jayton Stinson is scheduled to be sentenced on Jan. 31, 2018.

 

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Dunavant commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Damon Griffin and Trial Attorney Nathan Brooks, who are prosecuting the case. 

 

Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.

Jackson, TN – Jeremy Seville Hall was sentenced to 9 years in federal prison for being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, on December 26, 2016, an officer with the Jackson Police Department (JPD) conducted a traffic stop on a silver Kia Spectra that had a non-functioning driver’s side brake light. During the stop, the defendant, a backseat passenger in the vehicle, was found to have active warrants for his arrest. Hall opened the rear left passenger door and fled the area on foot while wearing a backpack.

The police officer gave chase and attempted to take Hall into custody. He assaulted the officer, putting him in a chokehold and attempted to flee while emptying the contents of the backpack. When additional officers arrived on the scene, they obtained control of Hall. Officers then noticed a Glock 27, .40 –caliber pistol on the ground at Hall’s feet. A search of Hall’s person, revealed two additional .40 caliber rounds of ammunition in the right front pocket of his pants. The firearm had been reported stolen from Brownsville, TN., on February 28, 2016.

United States Attorney D. Michael Dunavant said: "By collaborating with our law enforcement partners we will use every available resource to ensure the safety of our citizens. If you choose to illegally possess firearms anywhere within the 22-counties of the Western District of Tennessee, you will be met with aggressive and unrelenting federal prosecution. The professionals in the U.S. Attorney’s Office along with law enforcement partners are committed to aggressively removing individuals from our communities that commit these and other horrific crimes. This is our mission. Gun Crime is Max time."

On November 27, 2017, the Honorable S. Thomas Anderson, Chief United States District Court Judge, sentenced Hall to 9 years imprisonment and 3 years supervised release to begin after his incarceration. His sentence included a sentencing enhancement for assaulting a law enforcement officer during the offense.

"The Jackson Police Department is committed to working with the U.S. Attorney’s Office and our federal partner law enforcement agencies to continue to target violent individuals who commit crimes with guns. If you commit a crime in Jackson with a firearm that violates federal laws, you can expect to face the consequences."

The Jackson Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; and the U.S. Attorney’s Office, who have all worked jointly to address gun-related crimes through aggressive investigation and prosecution, investigated this case.

Assistant U.S. Attorney Taylor Eskridge is prosecuting this case on the government’s behalf.

Memphis, TN – After two days of the trial before U.S. District Judge John T. Fowlkes, Jr., the defendantM. Cleve Collins entered a plea of guilty to the indictment charging him with one count of major fraud against the United States. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the conviction today.

According to the indictment, M. Cleve Collins, aka Milton Cleve Collins aka Cleve Collins, 54, executed a scheme to defraud the United States on a construction contract valued at approximately one and one-half million dollars administered by the General Services Administration for the replacement of the roof and the air conditioning system at the Ed Jones Federal Courthouse and Post Office in Jackson, TN.

As part of the scheme to defraud, Collins caused the roofing subcontractor, a small Memphis-area business, to perform work for which he was never fully paid. Additionally, Collins filed false and fraudulent certifications with the U.S. Government indicating he had, in fact, paid the subcontractor. The value of the funds obtained because of this scheme was over $580,000.

"As the legal representative of the United States of America, it is the priority and duty of the U.S. Attorney’s Office to safeguard taxpayer funds, and to promote the responsible use and stewardship of such government resources for the benefit of our nation and our citizens. The major fraud committed by the defendant in this case is a serious crime of dishonesty and deceit that strikes at the very heart of those national interests, and will not be tolerated. The GSA and the FBI are to be commended for their diligent investigative work in uncovering and exposing this fraud, and I am pleased that we have achieved justice by holding the defendant accountable under the law," said D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee.

On November 17, 2016, Collins was indicted on one count of violation of major fraud against the United States. The sentencing hearing is set for March 1, 2018. The maximum penalty for major fraud against the United States is not more than 10 years, not more than a $5,000,000 fine, 3 years supervised release and a special assessment of $100.

"Federal contractors are obligated to follow through on their promises to make payments to their subcontractors," said GSA Inspector General Carol Fortine Ochoa. "When contractors fail to meet their obligations, we will hold them accountable."

"The FBI takes particular interest in cases where individuals, for their own personal benefit, use deceit and fraud to line their pockets," said Michael T. Gavin, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation. "Fraud has a negative and long lasting impact on the community, and the honest and law abiding citizens who are fed up with the likes of those who, motivated merely by greed, violate the law, should be assured by this conviction that the FBI is committed to work closely with its law enforcement partners to vigorously pursue anyone who commits such crimes."

This case was investigated by Special Agent Steve Heckler of the General Services Administration, Office of the Inspector General and Special Agent Brent Hayden of the FBI. Assistant U.S. Attorney Tony Arvin is prosecuting this case on the government’s behalf.

Memphis, TN – On November 8, 2017, a federal grand jury returned a 7-count indictment charging five defendants with conspiracy to distribute large amounts of marijuana and money laundering. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the indictment today.

This investigation was conducted in conjunction with prosecutors in Memphis and elsewhere as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.

Between 2014 and May 3, 2017, the defendants engaged in a multi-state marijuana and money laundering conspiracy. Utilizing the U.S. Mail, the defendants would send and receive packages of marijuana for redistribution in multiple locations, including Memphis and Chattanooga, Tennessee and San Francisco, California. In furtherance of this conspiracy, the defendants conducted a large number of financial transactions.

"This indictment reflects the ongoing priority of the U.S. Attorney’s Office to use all available law enforcement and prosecutorial resources to disrupt and dismantle drug trafficking organizations and conspiracies that distribute illegal narcotics into and through the Western District of Tennessee. Our investigations and prosecutions through the OCDETF Program will be aggressive and far reaching, and will include criminal forfeiture of the ill-gotten financial proceeds from such illegal activities," said U.S. Attorney D. Michael Dunavant.

The five defendants indicted on federal charges include:

Jijad Hijazi, 33, San Francisco, CA
Christopher Heffernan, 32, San Francisco, CA
Nasseam Elkarra, 36, San Francisco, CA
Kenric West, 46, Memphis, TN
Patrick O’Neal, 28, Memphis, TN

Count 1 charges Jijad Hijazi, Christopher Heffernan, Nasseam Elkarra, Kenric West and Patrick O’Neal with conspiracy to distribute, and to possess with intent to distribute, in excess of 100 kilograms of marijuana.

Count 2 charges Kenric West with possession with intent to distribute 444.2 grams of marijuana.

Count 3 charges Kenric West with possession with intent to distribute 23.4 grams or more of cocaine.

Count 4 charges Kenric West with being a convicted felon in possession of a firearm.

Count 5 charges Jijad Hijazi and Kenric West with possession with intent to distribute marijuana in excess of 2,690 grams.

Count 6 charges Jijad Hijazi and Kenric West with possession with intent to distribute 1,523 grams of marijuana.

Count 7 charges Jijad Hijazi and Kenric West with conspiring to engage in financial transactions with intent to promote the carrying on of specified unlawful activity, that is conspiracy to commit drug trafficking.

The United States also seeks criminal forfeiture of $3,078,000 in U.S. currency, both jointly and separately from Jijad Hijazi, Christopher Heffernan, Nasseam Elkarra, Kenric West and Patrick O’Neal.

If convicted, the defendants face maximum sentences of up to 40 years imprisonment for the drug conspiracy charge, 5 years imprisonment for each of the marijuana possession charges, 10 years imprisonment for felon in possession of firearm charge, and 2o years imprisonment for the money laundering conspiracy charge.

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

This case was investigated by the Drug Enforcement Administration and the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Cotten is prosecuting this case on the government’s behalf.

Jackson, TN – On November 20, 2017, a federal grand jury returned a 14-count indictment charging five defendants with federal Hobbs Act Robbery in West Tennessee. D. Michael Dunavant,U.S. Attorney for the Western District of Tennessee, announced the indictment today.

According to the indictment, from July 1, 2016 through October 31, 2016, Jenial Edwards, Scotty Edwards, Eddie Matthews, Zarius Norment and Johnny Cross were on a robbery crime spree. Separately and together, the defendants robbed seven different businesses in Bolivar, Whiteville, and Jackson, Tennessee. Some of the defendants possessed firearms in each of these robberies. The 14-count indictment charges each defendant with robbery affecting interstate commerce and carrying and/or brandishing firearms during the commission of the robberies. Jenial Edwards is also charged with being a felon in possession of a firearm.

The defendants are:

Jenial Edwards, 25, Bolivar, TN
Scotty Edwards, 25, Bolivar, TN
Eddie Matthews, 26, Bolivar, TN
Zarius Norment, 21, Whiteville, TN
Johnny Cross, 54, Bolivar, TN

If convicted, each defendant faces up to 20 years imprisonment for each of the robberies and a $250,000 fine. In addition, the defendants face a consecutive 7-year sentence for brandishing a firearm during the robberies. Jenial Edwards has an additional penalty of not more than 10 years for being a convicted felon in possession of a firearm. The United States also seeks criminal forfeiture of property involved in the crime.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Hardeman County Sheriff’s Office; and Bolivar, Whiteville and Jackson Police Departments.

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

Assistant U.S. Attorney Victor L. Ivy is prosecuting this case on the government’s behalf.

Jackson, TN – D. Michael Dunavant, United States Attorney for the Western District of Tennessee and Tracey D. Montano, Special Agent in Charge, IRS-Criminal Investigation announced today that Joel Anthony Bunch, of Clifton, Tennessee has pleaded guilty to one count of Filing a False Federal Income Tax Return.

On February 21, 2017, Bunch was charged with Filing False Federal Income Tax Returns in an 8-count indictment handed down by a federal grand jury in Jackson.

According to the indictment, Bunch filed false U.S. Corporation Income Tax Returns for the tax years 2010, 2011, 2012, and 2013, by underreporting the corporation’s gross receipts. Bunch also filed false U.S. Individual Income Tax Returns for tax years 2010, 2011, 2012, and 2013, by underreporting gross receipts on his Schedule C, Profit or Loss from Business.

During today’s plea hearing, Bunch pled guilty to Count 8 of the indictment charging him with filing a false U.S. Individual Income Tax Return for tax year 2013. At that time, Bunch owned Bunch Forest Products, located in Clifton, Tennessee, and was the sole person responsible for the business record keeping. Bunch caused his paid tax return preparer to underreport his gross receipts for 2013, by depositing business income into his personal bank account, cashing income checks, and knowingly providing incomplete and inaccurate information to his paid preparer. As a result, Bunch’s 2013 gross receipts were underreported by $27,317, resulting in an additional tax due and owing of $8,361.

The Internal Revenue Service – Criminal Division investigated this case. Assistant U.S. Attorney Matthew J. Wilson is prosecuting the case on the government’s behalf.

Memphis, TN – After a six-day jury trial in the U.S. District Court, a Memphis man has been found guilty as charged of using stolen identities to defraud over 100 individual victims and various financial institutions of more than $1.7 million dollars. In addition, he was found guilty on two counts of tampering with government witnesses. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the convictions today.

According to the indictment, Jeremy Jones, 39, of Memphis, executed a scheme to steal the identities of personal acquaintances, car dealers and over 145 Memphis Neurology patients throughout 2011, 2012 and 2015. Jones used this identifying information to apply for loans and credit cards and open bank accounts in the individuals’ names without their knowledge. A co-conspirator, who was employed at Memphis Neurology, removed patient information from the company’s database and provided it to Jones upon his request. Jones agreed to compensate the co-conspirator for providing him with this information.

Jones sent and received loan applications, checks and other financial information from numerous lenders throughout the United States via the internet and mail carriers. The potential loss is $1.7 million.

On February 16, 2016, Jones was originally indicted on individual counts of conspiracy to commit identity theft and mail fraud, and separate counts of identity theft, mail fraud, and aggravated identity theft. On October 3, 2017, a superseding indictment added two additional counts of obstruction of justice for tampering with two government witnesses.

The sentencing hearing is set for March 8, 2018. The maximum prison sentence for conspiracy is 5 years; the maximum prison sentence for identity theft is 5 years; and the maximum prison sentence for mail fraud is 20 years. The maximum prison sentence for aggravated identity theft is a mandatory penalty of 2 years imprisonment consecutive to any other sentence imposed. For the obstruction of justice charge, the maximum sentence is 20 years.

"Identity theft and financial fraud of this magnitude and scale by the defendant has victimized hundreds of people by compromising their personal and private information for his own selfish and unjust enrichment, and I am pleased that we have been able to hold the defendant accountable and achieve justice for the victims. I want to commend the good investigative work done in this case by the U.S. Postal Inspection Service and U.S. Secret Service, and I want to recognize the outstanding prosecutorial efforts of Assistant U.S. Attorneys Damon K. Griffin and Murre Martindale in presenting this complex case to the jury on behalf of the government," said U.S. Attorney D. Michael Dunavant.

Jackson, TN – On November 20, 2017, a federal grand jury charged a Honduran man found in possession of multiple firearms in Jackson, Tennessee, in a 33-count indictment. D. Michael Dunavant,U.S. Attorney for the Western District of Tennessee, announced the indictment today.

According to the indictment, on November 9, 2017, Melvin Melendez-Garcia, a/k/a/ "Joker," a/k/a Melvin Melendez, a/k/a Melvin Arteaga-Rivas, 32, reentered the United States after being deported and removed from the United States on multiple prior occasions, and did not have consent of the Attorney General or the Secretary of Homeland Security to reapply for admission into the country.

Melendez is also charged with 16 counts of being an alien in possession of several firearms, including shotguns, pistols, revolvers, and semi-automatic high capacity rifles. Melendez faces 16 additional counts of being an unlawful user of a controlled substance in possession of the same firearms.

If convicted, the defendant will face up to 10 years in federal prison for illegal reentry. Melendez will also face up to 10 years in federal prison for each of the individual firearm counts.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Homeland Security Investigations; Madison County Sherriff’s Office and Jackson Police Department Metro Narcotics Unit; and the U.S. Attorney’s Office.

The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.

Assistant U.S. Attorney Taylor Eskridge is prosecuting this case on the government’s behalf.

Jackson, TN – On November 20, 2017, a federal grand jury charged two defendants for allegedly robbing two banks in two separate counties in West Tennessee. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the indictment today.

According to the indictment, on August 25, 2017, Gene Allen Howell, 36, of Selmer, Tennessee and Janet Nicole Thompson, 36, of Enville, Tennessee, robbed the Home Banking Company in Finger, Tennessee. Several months later, on October 14, 2017, the defendants robbed the Peoples Bank in Reagan, Tennessee. During each robbery, Howell brandished a weapon.

Howell and Thompson are charged with two counts of bank robbery. Howell is also charged with possessing and discharging a firearm during crime of violence. If convicted, each defendant will face up to 20 years in federal prison for each of the individual robbery counts. Howell will face up to life in federal prison for discharging firearms during the robberies. The defendants allegedly aided and abetted each other during the commission of the crime.

United States Attorney D. Michael Dunavant said: "Bank robbery committed with a firearm is an inherently violent offense, and threatens the very fabric of our financial institutions that provide commercial services to citizens and the community. These disturbing and brazen acts of violence will not be tolerated, and will be met with firm resolve, quick investigative action, and aggressive federal prosecution. By collaborating with federal, state and local partners, we will use every available resource to ensure the safety of our citizens and security of our banking institutions."

During the investigation, agents seized two pistols, including a .45 caliber. The ammunition in the pistol was the same make and manufacture as casings found at the Reagan Bank.

The case was investigated by the FBI;Henderson County Sheriff’s Office; and the McNairy County Sheriff’s Office. Assistant U.S. Attorney Matthew Wilson is prosecuting this case on the government’s behalf.

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

 

Jackson, TN – A Henry County man has pleaded guilty to possession and receipt of child pornography. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the guilty plea today.

In February 2017, law enforcement officers in Henry County, Tennessee, received a lead out of Belvidere, Illinois, regarding Russell Jann, 44, of Cottage Grove, Tennessee. Based on that lead and the ensuing investigation, agents learned that Jann had been engaging in sexually explicit online chats and conversations via text messages with at least four minor victims ranging in age from 15 to 17 years old.

Jann exchanged messages with the victims containing pictures of his genitalia and videos of himself masturbating and received similar sexually explicit images and/or videos of at least 3 of the 4 minor victims. Agents also recovered a laptop computer and external hard drive from Jann’s home that contained thousands of images and videos of child pornography depicting children as young as infants. Jann is facing a mandatory minimum five years’ imprisonment.

This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources."

This case was investigated by the FBI; Belvidere (Illinois) Police Department; and Henry County Sheriff’s Office. Assistant U.S. Attorney Kasey Weiland is prosecuting the case on the government’s behalf.

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Memphis, TN – Ten residents of the greater Memphis area have been indicted for conspiring to distribute large quantities of methamphetamine, cocaine, and marijuana throughoutWest Tennessee. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the indictment today.

On November 2, 2017, a federal grand jury returned a superseding indictment, which remained sealed until the defendants’ arrest. On Tuesday, November 7, 2017, federal, state and local law enforcement agencies participated in an early morning round up. This investigation was conducted in conjunction with prosecutors in Memphis as part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Program, which seeks to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.

The indictments follow a six-month investigation involving agents of the FBI as well as other federal and state agencies in this joint operation. The defendants have been charged with conspiracy to distribute and possess with the intent to distribute more than 500 grams of methamphetamine, more than 5 kilograms of cocaine, and more than 100 kilograms of marijuana. The defendants are:

• Daniel Castelo, 42, Memphis, Tennessee
• Lorenzo Castelo, 39, Memphis, Tennessee
• Carlos Crump, 33, Memphis, Tennessee
• Julio Ceasar Garcia, 37, Memphis, Tennessee
• Josue Gonzalez, 28, Memphis, Tennessee
• Jesus Gutierrez, 40, Memphis, Tennessee
• Albert Hall, 33, Memphis, Tennessee
• Roy Lee Johnson, 59, West Memphis, Arkansas
• Roy Lee Johnson Jr., 27,West Memphis, Arkansas
• Victor Torrez, 19, Memphis, Tennessee

U.S. Attorney D. Michael Dunavant said, "This indictment and takedown represents another great example of law enforcement working together to remove criminals from the Western District of Tennessee. We will not tolerate illegal drug activity disrupting our daily lives. Each day, we are driven with all due haste to go after those who do not abide by our laws of justice and who distribute poison in our community. We are coming after you. Making our communities safer for our citizens is our priority and mission."

Count 1 charges Lorenzo Castelo, Daniel Castelo, Carlos Crump, Julio Ceasar Garcia, Jesus Gutierrez, Albert Hall, Roy Lee Johnson, Roy Lee Johnson Jr., and Victor Torrez with conspiracy to possess with intent to distribute 5 kilograms of Cocaine.

Count 2, 3, and 4 charges Lorenzo Castelo with possession with intent to distribute and distribute in excess of 50 grams of Methamphetamine.

Count 5 charges Lorenzo Castelo, Daniel Castelo, Julio Ceasar Garcia, Josue Gonzalez, and Victor Torrez, with possession with intent to distribute and to distribute in excess of 500 grams of Methamphetamine.

Count 6 charges Lorenzo Castelo, Daniel Castelo, Carlos Crump, Julio Ceasar Garcia, Albert Hall, Roy Lee Johnson and Victor Torrez with possession with intent to distribute and to distribute in excess of 100 kilograms of Marijuana.

Count 7 charges Lorenzo Castelo, Daniel Castelo and Victor Torrez with possession with intent to distribute in excess of 500 grams of Methamphetamine.

The United States also seeks criminal forfeiture of $1,000,000 in U.S. currency, both jointly and severally from Lorenzo Castelo, Daniel Castelo, Victor Torrez, Julio Ceasar Garcia, Carlos Crump, Albert Hall, Roy Lee Johnson, Roy Lee Johnson Jr., Jesus Gutierrez and Josue Gonzalez.

"Illegal drugs are related violence are serious threats to our communities and these arrests demonstrate the importance of cooperation between state, local and federal law enforcement in the Investigation and prosecution of drug trafficking organizations," said Michael T. Gavin, Special Agent in Charge of the Memphis Field Office of the FBI. "The FBI will continue to combat these issues to protect our community from the lethal combination of narcotics and firearms, and to disrupt and dismantle the drug networks that threaten our neighborhoods."

During this investigation, agents seized approximately $345,000 in U.S. currency and 16 pounds of meth. If convicted, the defendants face mandatory minimum sentences of 10 years imprisonment up to life.

The FBI and Homeland Security Investigations ("ICE") investigated this case, along with the FBI Safe Streets Task Force, which includes agents from the Memphis Police Department, Shelby County Sheriff’s Office, Bartlett Police Department, Germantown Police Department, and Desoto County, Mississippi Sheriff’s Department, who also participated in this investigation. Assistant U.S. Attorney Jerry Kitchen is prosecuting the case on the government’s behalf.

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

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Memphis, TN –U.S. Attorney D. Michael Dunavant, joined the Drug Enforcement Administration (DEA) on October 28, 2017 for its 14th National Prescription Drug Take Back Day. The biannual event was held from 10 a.m. to 2 p.m., at thousands of collection sites around the country, including at Kroger, 7615 Highway 70 Bartlett, TN. That one-day event made it convenient for the public to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs. Authorities collected 226 lbs. of prescription drugs at the Kroger location.

Americans nationwide did their part to reduce the opioid crisis by bringing the DEA and its partners a record-setting 912,305 pounds – 456 tons – of potentially dangerous expired, unused, and unwanted prescription drugs for disposal at more than 5,300 collection sites. That is almost six tons more than was collected at last spring’s event.

"Our office was pleased to partner with DEA for this important cause. The President recently announced mobilizing his entire Administration to address drug addiction and opioid abuse by directing the declaration of a Nationwide Public Health Emergency. With the opioid epidemic at an all-time high, we must take advantage of every opportunity to rid our communities of drugs that destroy the lives of our fellow citizens," said D. Michael Dunavant, U.S. Attorney, Western District of Tennessee.

Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.

DEA’s next Prescription Drug Take Back Day is April 28, 2018.

For more information or to locate a collection site near you, go to the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov where you can search by zip code, city or state.

Memphis, TN – Seven members of a drug trafficking organization have pleaded guilty to distributing Oxycodone. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the guilty pleas today.

According to the indictment, on or about 2012 through March 2, 2017, Courtney M. Jones’ drug trafficking organization distributed a continuous supply of Oxycodone pills to customers of his organization. Jones and other co-conspirators organized and managed the delivery of various quantities of Oxycodone from Las Vegas, Nevada, into the Western District of Tennessee. The other defendants include Loren N. Bryant; Toresha D. Douglas; Charlotte M. Goldsmith; Magon O. Hall; Gabriel Rounds and Demarious E. Tuggle.

On May 9, 2013, Las Vegas Postal Inspectors began an investigation into packages suspected of containing Oxycodone pills. The U.S. Postal Inspection Service (USPIS) identified phone numbers, surveillance images, vehicle registrations and other information connecting Gabriel Rounds and Magon Hall sending packages to various addresses and recipients through Express Mail envelopes.

On March 2, 2017, an undercover Postal Inspector delivered an Express Mail package to Jones’ apartment. The surveillance team observed Jones meet the mail carrier and accept the package. A search warrant was executed, and approximately 700 oxycodone pills and $53,325 in cash was recovered, as well as a fully loaded Glock 9mm pistol, 6.1 grams of marijuana found inside of a wooden box and 3.3 grams of marijuana inside a plastic bag in a kitchen cabinet. Jones was a convicted felon at the time of the incident.

The investigation further revealed that the defendants would deposit or withdraw cash from Wells Fargo Bank, Bank of America, In Touch Credit Union and MoneyGram as payment for the shipments.

The defendants are scheduled to be sentenced by U.S. District Judge Sheryl H. Lipman as follows: Courtney M. Jones on January 12, 2018; Toresha D. Douglas on January 18, 2018; Megan O. Hall on January 19, 2018; Gabriel Rounds and Demarious E. Tuggle on January 25, 2018; Loren N. Bryant and Charlotte M. Goldsmith on February 2, 2018. The maximum penalty is not more than 20 years imprisonment and $500,000 fine and 5 years supervised release to begin after incarceration.

The United States Postal Inspection Service and Shelby County Sheriff’s Office investigated the case. Assistant U.S. Attorneys Jerry Kitchen and Michelle Parks are prosecuting the case on the government’s behalf.

Jackson, TN – Henry McGuire was sentenced to a total of 240 months in federal prison for being a felon in possession of a machine gun and seven other firearms in Tennessee; and for possession of methamphetamine with intent to distribute and possessing a firearm during a drug trafficking offense in Idaho. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, on February 6, 2016, members of the Boise Police Department in Idaho encountered Henry McGuire after he committed a traffic violation. During the stop, a K9 officer alerted to the presence of narcotics inside the vehicle and officers observed a semi-automatic pistol, tucked between the driver seat and center console. Upon searching the car, officers located a plastic bin containing marijuana, a digital scale, clear plastic bags, methamphetamine, heroin, bullets and several large wads of cash. Upon search of McGuire’s person, officers located a glass pipe containing white residue, methamphetamine, heroin, and over $1,500 in cash. McGuire admitting that he sold approximately one-half pound of methamphetamine every couple of days during the preceding year. The Boise Police Department seized approximately $16,851 cash and a Chevrolet Impala. McGuire was arrested and released on bail in Idaho and was later indicted federally in the District of Idaho.

On April 5, 2016, the United States Marshals Service was notified that Henry McGuire was an Alcohol, Tobacco and Firearms (AFT) fugitive from Idaho. McGuire was located by the U.S. Marshals and deputies with the Hardeman County Sheriff’s Office on Covington Loop in Saulsberry, TN. When officers arrived, they observed two vehicles and a "fifth wheel" travel trailer. After checking the travel trailer for safety, officers observed a rifle laying on the couch. Officers recovered over $5,000 cash from McGuire and obtained a search warrant to search the rest of the property.

After executing the search warrant, agents found eight firearms including:

• a STEN, 9mm, fully loaded automatic machine gun,

• a Remington 28-shotgun,

• a Browning 12 gauge shotgun,

• Ruger rifle,

• a Bersa Mini Firestorm 9mm pistol,

• a Norinco .223 caliber rifle,

• a Ruger .22 caliber pistol, and

• a Ruger .22 caliber rifle.

U.S. Attorney D. Michael Dunavant said, "This case is a great example of law enforcement partners collaborating throughout the country to bring to justice those individuals who break our gun and drug laws. You will be caught. We are unrelenting in our pursuit of justice."

Further investigation revealed three of the firearms, including the Bersa pistol, Ruger pistol, and Ruger rifle, had previously been reported as stolen. McGuire had previous felony convictions for Eluding Police Officers out of Boise, Idaho.

On November 1, 2017, the Honorable J. Daniel Breen, U.S. District Court Judge, sentenced McGuire to 240 months incarceration and 8 years supervised release to begin after his incarceration to resolve both the Idaho and Tennessee cases.

McGuire received 120 months for possession of the machine gun and other firearms in Tennessee, to be run concurrent with a 180-month sentence for possession of methamphetamine in Idaho. McGuire was also sentenced to 5 years consecutively to the methamphetamine charge for a total effective sentence of 240 months confinement.

Steve Gerido, ATF Special Agent in Charge commented, "The proactive relationships of law enforcement nationwide proved once again that individuals focusing on illegal firearms and narcotics activities will be brought to justice."

The Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise (Idaho) Police Department; Hardeman County Sheriff’s Office; and the U.S. Attorney’s Office, who have all worked jointly to address gun-related crimes through aggressive investigation and prosecution, investigated these cases.

Assistant U.S. Attorneys Taylor Eskridge and Bryce B. Ellsworth prosecuted these cases on the government’s behalf.

KNOXVILLE, Tenn. (Nov. 2, 2017) – The state’s 31 District Attorneys have recognized U.S. Attorney Mike Dunavant, formerly the District Attorney General for the 25th District, with the McCutchen Award, which was established in 2000 in memory of Tennessee District Attorneys General Conference Director Pat McCutchen.

 

“Director McCutchen’s goal was for the Conference to be the voice of criminal justice,” said Jerry Estes, Executive Director of the Tennessee District Attorneys General Conference. “Like Pat, Mike has been a key player in the Conference’s work since being elected in 2006, serving in multiple leadership roles. His commitment to justice led to his being appointed a U.S. Attorney. He is more than deserving of this award.”

 

This award is given annually to a prosecutor who shows an extraordinary embrace of McCutchen’s vision of the Conference as Tennessee’s definitive voice for criminal justice.

 

“I am honored that my fellow prosecutors would consider me to be in the same category as Pat McCutchen, an exemplary leader,” Dunavant said. “During my time as a District Attorney, I was proud to serve in multiple leadership roles with the Conference. The Conference is the voice of criminal justice, and that in many ways is thanks to Pat McCutchen’s work.”

 

Dunavant has served in several Conference leadership positions, including President, Vice President and Secretary, and has chaired the Justice and Professionalism Committee since 2014, and previously served on the Legislative and Child Support committees.

 

Dunavant was first elected as a District Attorney for the 25th Judicial District in 2006, and was re-elected in 2014. He was nominated in June 2017 by President Donald J. Trump to serve as the U.S. District Attorney for the Western District. The U.S. Senate confirmed his nomination in September. Dunavant received his B.A. degree in political science from the University of Tennessee–Knoxville in 1992 and his law degree from the University of Mississippi in 1995. He and his wife, Marianne, live in Atoka with their two sons, Hutch and Trey.

 

About TNDAGC

 

The Tennessee District Attorneys General Conference was created by the Tennessee General Assembly in 1961 to provide for a more prompt and efficient administration of justice in the courts of this state. It is composed of the District Attorneys General from the state’s 31 judicial districts. The District Attorneys General are elected for a term of eight years and are responsible for the prosecution of criminal cases on behalf of the state. Visit www.tndagc.org for more information or to contact your local District Attorney General.

Memphis, TN – A federal jury has found a Bartlett man guilty for possession of a controlled substance with intent to distribute, possession of firearms in furtherance of drug trafficking, as well as being a felon in possession of firearms. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the guilty verdicts today.

According to information presented in court, throughout August 2016, Detectives with the Bartlett Police Department received information that David High, 31, was selling marijuana at a residence in Memphis, TN. Officers set up surveillance at the residence and saw High smoking marijuana on the front steps of his house. On August 19, 2016, law enforcement witnessed him walk outside with a backpack and get into a truck. They followed him and stopped him for speeding in a school zone.

As officers approached the defendant, he attempted to put something under the passenger side seat. Officers noticed the strong smell of marijuana emanating from the car and noticed the defendant visibly shaken. High admitted to speeding in the school zone. The officers searched the car based on the marijuana smell and found a dark colored backpack under the passenger side seat containing a clear plastic bag with 125 grams of marijuana, a black plastic bag with 125.6 grams of marijuana and a black bag containing 119.3 grams of THC wax. The marijuana field-tested positive.

Based on this information, the officers obtained a search warrant to search for drugs and drug proceeds at the residence. The officers executed the search warrant the same day and discovered a Smith & Wesson .38-caliber revolver loaded with five rounds of ammunition and a Mossberg 12 gauge shotgun. The shotgun has a pistol stock and was located between a bedside table and the bed, allowing for easy access. The shotgun was also within arm’s length of a dresser, which contained the majority of the marijuana. High’s ID was found in the top of one of the dressers in the master bedroom. A box of 12 gauge shotgun shells was found in one of the nightstands in the bedroom.

Throughout the residence was a total of 1265.6 grams of marijuana, 110.2 grams of marijuana wax and $2,990 in cash.

United States Attorney D. Michael Dunavant said, "On July 24, 2017, our office along with other local partners held the ‘Fed Up’ press conference to inform the citizenry that we are fed up with this type of lawlessness, drug trafficking, and gun violence throughout our communities. This case serves as a reminder that if you choose to illegally possess a firearm, you could be facing up to life in federal prison. Gun Crime is Max Time."

Sentencing is scheduled for February 2, 2018, before U.S. District Judge Sheryl H. Lipman. High faces up to 15 years imprisonment.

This case was investigated by the Bartlett Police Department and Project Safe Neighborhoods. Assistant U.S. Attorney J. William Crow is prosecuting this case on the government’s behalf.

Memphis, TN – An Arlington man has been sentenced to federal prison for soliciting a minor child through social media. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, between June and September 2016, Matthew Marr used the internet to meet and seduce a fourteen-year old girl. Marr first met the child through a social media app. Although she told him that she was only fourteen, Marr quickly convinced her that he would be her boyfriend. Marr convinced the girl to take photographs of her genitals and send the pictures to him using another social media site. Ultimately, Marr met the girl in person and engaged in sexual intercourse.

This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.

On October 30, 2017, U.S. District Judge John T. Fowlkes Jr., sentenced Marr to 188 months imprisonment and 10 years supervised release following his incarceration.

For more information about PSC, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.

The Bartlett Police Department and FBI Memphis Child Exploitation Task Force investigated the case. Assistant U.S. Attorney Deb Ireland prosecuted the case on the government’s behalf.

Memphis, TN –U.S. Attorney, D. Michael Dunavant, Western District of Tennessee, will join the Drug Enforcement Administration on October 28, 2017 for its 14th National Prescription Drug Take Back Day. The biannual event will be held from 10 a.m. to 2 p.m., at thousands of collection sites around the country, including here at Kroger, 7615 Highway 70 Bartlett, TN. This one-day event will make it convenient for the public to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.

Last April Americans turned in 450 tons (900,000 pounds) of prescription drugs at almost 5,500 sites operated by the DEA and more than 4,200 of its state and local law enforcement partners. Overall, in its 13 previous Take Back events, DEA and its partners have taken in over 8.1 million pounds, more than 4,050 tons, of pills. The disposal service is free and anonymous, no questions asked.

"Our office is pleased to partner with DEA for this important cause. DEA is to be commended for its efforts to provide citizens across the country the opportunity to dispose of unused prescription painkillers. With the opioid epidemic at an all-time high, we must take advantage of every opportunity to rid our communities of drugs that destroy the lives of our fellow citizens," said D. Michael Dunavant, U.S. Attorney, Western District of Tennessee.

Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. According to the Centers for Disease Control and Prevention, 91 Americans die each day from an opioid overdose. Some painkiller abusers move on to heroin: Four out of five new heroin users started with painkillers.

For more information or to locate a collection site near you, go the DEA Prescription Drug Take Back Day web site at https://takebackday.dea.gov where you can search by zip code, city or state.

Memphis, TN – A Memphis man has been sentenced to 57 months in federal prison for committing bank fraud against financial institutions in the Memphis area. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to the indictment, from August 2011 through February 2016, Talmadge Garner and other co-conspirators participated in a deceptive scheme to defraud Orion Federal Credit Union, SunTrust Bank and Regions Bank by opening new accounts and/or using their existing accounts to deposit fraudulent checks. Garner also stole the identities of individuals to pass fraudulent checks to the Banks.

Nearly 200 fraudulent checks totaling over $130,000 were deposited into accounts at the Banks. Immediately after deposits were made in the banks, withdrawals were made by Garner and others. Garner would give co-conspirators some of the proceeds withdrawn from the banks.

On October 25, 2017, U.S. District Judge Sheryl H. Lipman sentenced Garner to 57 months imprisonment and 3 years supervised release to begin after his incarceration.

The case was investigated by the United States Secret Service. Assistant U.S. Attorney Damon Keith Griffin prosecuted the case on the government’s behalf.

Memphis, TN – A Memphis man has been sentenced to 18 months in federal prison for obstructing the Internal Revenue Service ("IRS"). D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the sentence today.

According to documents and information provided to the court, Cedric Zimbalist Chism was the former owner and operator of a security guard service, Memphis Security of Tennessee, Inc. ("MSOFT"). MSOFT had contracts for services with various businesses throughout the Western District of Tennessee in Memphis. Chism attempted to impede and evade payment and reporting of employment taxes to the IRS from 1999 to 2011. Chism, personally and as owner and operator of MSOFT, owed $1,688,473.45 with a tax loss to the IRS of $854,144.39.

On October 20, 2017, U.S. District Judge John T. Fowlkes, Jr., sentenced Chism to 18 months imprisonment and 1 year supervised release to begin after his incarceration.

The case was investigated by the United States Internal Revenue Service. Assistant U.S. Attorney Damon Keith Griffin prosecuted this case on the government’s behalf.

Memphis, TN – John Kenny, 26, pleaded guilty to federal charges of armed carjacking and being a felon in possession of a firearm. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the guilty plea today.

According to information presented in court, on August 20, 2016, the defendant brandished a Glock 9mm pistol and demanded a 2015 GMC Terrain from the victim as he was sitting inside the car outside of Bardog Tavern, 73 Monroe Avenue. The defendant then shot the victim in the arm and demanded the wallet. After stealing the wallet, along with the victim’s cell phone, the defendant carjacked the victim’s car and drove off. The victim was transported to the hospital and treated for his gunshot injury.

Shortly after the robbery, Memphis Police Department officers located the defendant along with the GMC Terrain, the victim’s cell phone, and bloody wallet in his possession. Law enforcement searched the GMC Terrain and recovered a shell casing.

The defendant was identified from a photographic lineup as the person who shot the victim, took the GMC Terrain, and wallet.

United States Attorney D. Michael Dunavant said, "On July 24, 2017, our office along with other local partners held the ‘Fed Up’ press conference to inform the citizenry that we are fed up with this type of violence throughout our communities. This case serves as a reminder that if you choose to illegally possess a firearm, you could be facing up to life in federal prison. Gun Crime is Max Time."

Sentencing is scheduled for January 26, 2018, before U.S. District Court Judge Sheryl H. Lipman. Kenny faces statutory penalties of not less than 10 years, up to life in federal prison, a period of supervised release and monetary penalties.

The case was investigated by the Project Safe Neighborhoods (PSN) Task Force, which includes the U.S. Attorney’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Memphis Police Department; and the Shelby County Sheriff’s Office, who have all joined together to address gun-related crimes through aggressive investigation and prosecution. Assistant U.S. Attorney Bayonle Osundare prosecuted this case on the government’s behalf.

 

MEDIA ADVISORY

WHAT: Investiture Ceremony for D. Michael Dunavant as United States Attorney for the Western District of Tennessee

DATE: Friday, October 20, 2017

TIME: 11:00 a.m.

WHERE: City Hall Council Chambers

125 North Main Street

Memphis, TN 38103

NOTE: All media members must present government-issued photo I.D. (such as driver’s license), as well as valid media credentials.

Media are requested to RSVP to Cherri.Green@usdoj.gov.

Jackson, TN – Krystle Sheals, 32, of Marion, Arkansas, has been indicted on federal charges of devising a scheme to defraud and obtain money and funds through false pretenses and the impersonation of a Special Agent with the Federal Bureau of Investigation. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the indictment today.

Sheals, a former bookkeeper with Nichols Fire and Security (NFS) in Memphis, Tennessee, is charged with using her access to her employer’s bank accounts to pay personal bills and expenses, including personal credit card payments, personal utility payments, car payments, school loan payments, and mortgage payments. While using NFS funds, Sheals is also charged with the purchase of an automobile, which she then gave to an individual in Henry County, Tennessee, and opening a retirement 401K account. The funds stolen amount to approximately $327,000.

Sheals is additionally charged with falsely assuming and pretending to be an officer and employee of the United States, namely a Special Agent of the Federal Bureau of Investigation (FBI). Sheals falsely stated to others that she was a federal agent; wore and possessed clothing, articles and insignia of the FBI; possessed and presented documents, business cards and identification purporting to be an FBI agent; and conducted interviews while falsely purporting to be an FBI employee.

A federal grand jury in Jackson, Tennessee returned an eleven-count indictment against Sheals on October 16, 2017, but the indictment remained under seal until Sheal’s initial court appearance. Agents with the Federal Bureau of Investigation arrested Sheals on October 17, 2017, in Shelby County, Tennessee.

If convicted, Sheals faces up the twenty years imprisonment on the wire fraud charges and up to three years imprisonment on the impersonation charges, in addition to up to three years supervised release and a $250,000 fine.

This case is being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew J. Wilson is prosecuting this case on the government’s behalf.

The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.