Western District of Tennessee

Memphis, TN – A federal jury has found a Memphis man guilty of possession of cocaine with intent to distribute, using and carrying a firearm during a drug trafficking offense, two counts of being a convicted felon in possession of a firearm, and possessing a firearm with an obliterated serial number. D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee announced the verdict today.

According to documents and information presented in court, on June 16, 2015, detectives for the Memphis Police Department Organized Crime Unit (OCU) executed an undercover operation at 5280 Summer Avenue. An undercover officer had been in contact with defendant Nickey Ardd, 41, for over 6 months posing as a drug dealer. One of the undercover officer’s confidential informants explained that Ardd was dissatisfied with his current cocaine supplier and searching for a new one. After several failed attempts to set up buys, on June 12, 2015, Ardd contacted the undercover officer and ordered 9 ounces of powder cocaine at $1,100 an ounce. The buy was set for June 16, 2015.

During the "takedown" operation, Ardd was arrested. A fully loaded Glock 9mm pistol was found on Ardd’s person. A total of $9,811 was recovered, which represented the money brought to the buy by Ardd. The operation was captured on surveillance video.

Later that day, a search warrant was executed at Ardd’s home. OCU detectives recovered additional cocaine packaged for sale and a loaded Luger 9mm caliber pistol. The serial number on the Luger had been obliterated.

Sentencing is scheduled for February 8, 2018, before U.S. Senior District Court Judge Samuel H. Mays. Ardd faces a mandatory minimum sentence of five years and up to life imprisonment.

The case was investigated by Project Safe Neighborhoods, the Memphis Police Department and the U.S. Attorney’s Office, who all work jointly to address gun-related crimes through aggressive investigation and prosecution.

Assistant U.S. Attorneys Karen Hartridge and Mabayonle Osundare prosecuted this case on the government’s behalf.

 

Memphis, TN – A Shelby County, Tennessee dentist pleaded guilty today to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and D. Michael Dunavant, U.S. Attorney for the Western District of Tennessee.

According to documents and information provided to the court, Andrea M. Henry, 44, 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 of the funds in the nominee’s bank account, and caused the nominee to purchase 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.

Sentencing is scheduled for January 12, 2018, before U.S. District Court Judge John T. Fowlkes Jr. Henry faces a statutory maximum sentence of five years in federal prison, a period of supervised release, restitution and monetary penalties.

Acting Deputy Assistant Attorney General Goldberg and United States 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, who are prosecuting the case.

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A Shelby County, Tennessee, dentist pleaded guilty today to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg 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, 44, 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.  

 

Sentencing is scheduled for Jan. 12, 2018 before U.S. District Court Judge John T. Fowlkes Jr.  Henry faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties.

 

Acting Deputy Assistant Attorney General Goldberg 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, who are prosecuting the case.

 

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

Jackson, TN – A local man has been sentenced to 17 years’ imprisonment for conspiracy to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, the FBI and other federal, state and local agencies conducted a year-long investigation into Franklin Shane Rushing, 46 of Decaturville, TN, and other co-conspirators who were distributing actual methamphetamine (methamphetamine with 80% or higher purity) in the Western District of Tennessee. The FBI received information that Rushing was a major distributor of ICE in Decatur County, Tennessee.

On December 9, 2015, a source purchased one ounce of meth from Rushing for $1,100. The DEA lab confirmed the drug amount to be 29.8 grams of 98.7% pure meth. Later that same day, Rushing sold another 28.2 grams of 99.6% pure meth. In February 2016, Rushing purchased one pound of ICE for $13,000 from his supplier. Law enforcement recovered another 4.5 ounces of ICE sold by Rushing. In March 2016, a traffic stop was conducted before Rushing could meet with his supplier to make arrangements for more narcotics. Seized from Rushing at that time was $9,086, as well as a loaded .40 caliber pistol in a holster. Law enforcement conducted a search warrant on Rushing’s home the same day as the traffic stop. 48 additional firearms were confiscated, along with digital scales, baggies, a small amount of meth and a drug notebook. During a 4-month period, 2.5 kilos of ICE was attributed to Rushing through this investigation.

On October 5, 2017, U.S. District Judge J. Daniel Breen sentenced Rushing to 144 months’ imprisonment for the drug conspiracy. He will serve 60 months consecutively on the firearms offense and 5 years supervised release following his incarceration.

The case was investigated by the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Tennessee Bureau of Investigation; 24th Judicial Drug Task Force; Decatur County Sheriff’s Department; Henderson County Sheriff’s Department; Lexington Police Department and as part of the FBI Safe Streets Task Force; Dyersburg Police Department and Jackson Police Department.

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

Memphis, TN – A local man has been sentenced to 90 months in federal prison for possession of child pornography. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the sentence today.

In late 2014, the Department of Homeland Security’s cyber investigative unit was conducting an investigation into a photo-sharing website that had become a popular place for the exchange of child pornography. Law enforcement identified a user of the website who had logged in from an IP address assigned to Jeffrey William Massey, 27, of Cordova, TN. The user had posted albums on the website containing pornographic images of minors.

On December 4, 2014, agents executed a search warrant at Massey’s residence. Massey agreed to talk to agents and admitted to obtaining child pornography online and to posting on the website under investigation. He also used websites and his email account to chat with others about and exchange child pornography.

During the search, agents seized numerous electronic and digital media storage devices. Forensic examination revealed approximately 250 images and 16 videos constituting child pornography. Review of Massey’s email account revealed chats about trading pornographic images of adults and minors, and evidence that child pornography had been sent from his email account on at least one occasion. His email account also contained communications from the website under investigation.

On October 5, 2017, the Honorable John T. Fowlkes Jr., sentenced Massey to 90 months’ imprisonment and 5 years’ supervised release to begin after his incarceration. He was also ordered to pay $13,000 in restitution.

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 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 and click on the tab "resources."

Assistant U.S. Attorney Kasey A. Weiland prosecuted this case on the government’s behalf.

Memphis, TN - Today, Attorney General Jeff Sessions announced several Department of Justice (DOJ) actions to reduce the rising tide of violent crime in America. To help combat the rise in violent crime, the DOJ is reinvigorating Project Safe Neighborhoods (PSN), a program first started in 2001 that successfully reduced violent crime.

In announcing this recommitment, the Attorney General directed that United States Attorneys implement an enhanced violent crime reduction program that incorporates the lessons learned since Project Safe Neighborhoods launched. The violent crime reduction program includes an emphasis on enhancing partnerships with federal, state and local law enforcement to reduce gun violence.

The PSN program uses the full range of data and technologies to identify the most violent locations in the district and the individuals who drive the violence in our cities. PSN partners then use all potential investigative tools and resources to develop and bring cases against those who commit violent crimes. Ultimately, the coordinate effort ensures that the most violent offenders in our district are prosecuted in the legal venue that provides the most certain and appropriate penalty.

The Attorney General said: "Taking what we have learned since the program began, we have updated it and enhanced it, emphasizing the role of our U.S. Attorneys, the promise of new technologies, and above all, partnerships with local communities. With these changes, I believe this program will be more effective than ever and help us fulfill our mission to make America safer."

U.S. Attorney Mike Dunavant said "This office remains committed to implementing policies to enhance Project Safe Neighborhoods framework. Since PSN’s inception, the program has been instrumental in reducing violent crime throughout the Western District of Tennessee. We look forward to continuing this important work with local, state and federal law enforcement partners to proactively target criminal organizations and aggressively remove violent offenders from the streets."

The Attorney General also announced the following Department of Justice initiatives to help reduce violent crime:

Additional Assistant United States Attorney Positions to Focus on Violent Crime – the Department is allocating 40 prosecutors to approximately 20 United States Attorney’s Offices to focus on violent crime reduction.

More Cops on the Streets (COPS Hiring Grants) – As part of our continuing commitment to crime prevention efforts, increased community policing, and the preservation of vital law enforcement jobs, the Department will be awarding approximately $98 million in FY 2017 COPS Hiring Grants to state, local and tribal law enforcement agencies.

Organized Crime and Drug Enforcement Task Force’s (OCDETF) National Gang Strategic Initiative – The National Gang Strategic Initiative promotes creative enforcement strategies and best practices that will assist in developing investigations of violent criminal groups and gangs into enterprise-level OCDETF prosecutions. Under this initiative, OCDETF provides "seed money" to locally-focused gang investigations, giving state, local, and tribal investigators and prosecutors the resources and tools needed to identify connections between lower-level gangs and national-level drug trafficking organizations.

Critical Training and Technical Assistance to State and Local Partners – The Department has a vast array of training and technical assistance resources available to state, local and tribal law enforcement, victim’s groups, and others. To ensure that agencies in need of assistance are able to find the training and materials they need, OJP will make available a Violence Reduction Response Center to serve as a "hot line" to connect people to these resources.

Crime Gun Intelligence Centers (CGIC) – The Department has provided grant funding to support a comprehensive approach to identifying the most violent offenders in a jurisdiction, using new technologies such as gunshot detection systems combined with gun crime intelligence from NIBIN, eTrace, and investigative efforts. These FY 2017 grants were awarded to Phoenix, Arizona and Kansas City, Missouri.

Expand ATF’s NIBIN Urgent Trace Program– The Department will expand ATF’s NIBIN Urgent Trace Program nationwide by the end of the year. Through this program, any firearm submitted for tracing that is associated with a NIBIN "hit" (which means it can be linked to a shooting incident) will be designated an "urgent" trace and the requestor will get information back about the firearm’s first retail purchaser within 24 hours, instead of 5 to 6 business days.

Jackson, TN – A Jackson man has been sentenced to 151 months in federal prison for distributing and possessing with intent to distribute crack cocaine. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, in January 2016, the Jackson Police Department Special Operations Division (Jackson Madison County Metro Narcotics and JPD Gang Enforcement Unit) and the Tennessee Bureau of Investigation, initiated an undercover investigation of 34-year-old Terrence Whiteside. The defendant, whose nickname is "Trouble," was a known member of the Gangster Disciples street gang.

Between January 2016 and February 2016, law enforcement did three controlled buys of cocaine base (crack) from Whiteside. They purchased a total of 29.45 grams of crack cocaine. On May 11, 2016, a search warrant was executed at a residence in Jackson, Tennessee. Officers also had an active arrest warrant for Whiteside at the time for the prior narcotic purchases. At the home, they found 6.9 grams of crack and 52.9 grams of marijuana. They also located Gangster Disciple documentation, including the gang’s by-laws. Officers seized four vehicles, three televisions, digital scales, 11 cell phones and $963 in cash. Whiteside was on parole for two prior state felony narcotic convictions at the time he was selling the crack and at the time of the search warrant.

While imposing the 151-month sentence, U.S. District Judge J. Daniel Breen also ordered Whiteside to serve a 3-year term of supervised release following his release from prison.

The case was investigated by Jackson Madison County Metro Narcotics Unit, Jackson Police Department Gang Enforcement Unit, and the Tennessee Bureau of Investigation.

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

D. Michael Dunavant was sworn in September 21, 2017, as the United States Attorney for the Western District of Tennessee. In a brief ceremony, Chief U.S. District Judge S. Thomas Anderson administered the oath of office in Jackson, Tennessee, making Dunavant the 50th person to serve as the chief federal prosecutor for the Western District.

Dunavant was nominated by President Donald Trump on June 12, 2017 and he was confirmed by the United States Senate on September 14, 2017.

"I am extremely humbled to be afforded the opportunity to serve the citizens of the Western District of Tennessee as their top federal-law enforcement officer. This responsibility will not be taken lightly. I, along with the dedicated professionals in the U.S. Attorney’s Office are committed to ensuring a safer community for our citizens in this 22-county district. I want to thank President Trump for his nomination."

Prior to his appointment as U.S. Attorney, Dunavant served as District Attorney General, 25th Judicial District of Tennessee. For eleven years prior to that, he was a partner in the law firm of Carney, Wilder and Dunavant, in Ripley, Tennessee.

Memphis, TN – A Memphis man has been sentenced for illegal gun possession related to an armed robbery that he committed at a gas station convenience store. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, on the evening of October 3, 2016, Gregory Craft, 35, brandished a firearm and demanded money from a customer of the Valero convenience store located at 4027 Jackson Avenue. After taking the victim’s money, the defendant left the store and fired the weapon into the air. Craft had previously been convicted of several state charges, including felony assault with a deadly weapon, unlawful possession of a weapon, aggravated assault and domestic assault.

An indictment returned on January 26, 2017, by a federal grand jury charged Craft with being a convicted felon in possession of a firearm. Following a three-day trial, a jury unanimously returned a guilty verdict on June 7, 2017. In imposing the 120-month sentence today, U.S. District Judge Samuel H. Mays also ordered Craft to serve a 3-year term of supervised release following his release from prison.

The case was investigated by the Project Safe Neighborhoods Task Force, and officers and agents of the Shelby County Sheriff’s Office, Memphis Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Assistant U.S. Attorneys Lauren J. Delery and Jerry R. Kitchen prosecuted this case on the government’s behalf.

Memphis, TN – A federal jury has found a Memphis man guilty of trafficking narcotics, possession with intent to distribute and manufacture controlled substances and being a felon in possession of a firearm. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the conviction today.

According to information presented in court, in March 2015, Duane Anthony Rouch, 52, 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 them shipped on ten occasions to a warehouse address in Memphis, Tennessee.

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. Rouch is scheduled for sentencing on December 7, 2017. He is subject to a mandatory minimum sentence of ten (10) years on the methamphetamine related offenses.

This case is being 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. Attorneys Sam Stringfellow and Bryce Phillips are prosecuting this case on the government’s behalf.

Memphis, TN – Bates family members have been sentenced for their roles in a Ponzi scheme that defrauded victims of more than twenty-one million dollars. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentences today.

In May 2017, a federal jury found Larry Bates; his two sons, Chuck and Robert Bates; and Kinsey Bates, the wife of Robert Bates, guilty on all counts set forth in a federal indictment that charged mail and wire fraud and conspiracy. The charges rose out of the defendants running a decade long Ponzi scheme in the buying and selling of gold and silver coins. The proof at trial showed that the defendants were able to accomplish the fraud through First American Monetary Consultants, a Colorado corporation, which had offices in Memphis, Tennessee and Ft. Collins, Colorado. The proof showed that more than three hundred and sixty victims lost more than twenty-one million dollars. The scheme continued from as early as 2002 through October of 2013.

"Today, justice has finally been served to members of the Bates Family as a result of their decade long Ponzi scheme. Their corruption ploy -- which devastated and destroyed the lives of many hard-working individuals -- ended today. I hope this will serve as a clear --cut message that the United States Attorney’s Office and its law enforcement partners will work tirelessly to expose and bring to justice people responsible for such acts of greed and corruption." said Larry Laurenzi, Acting United States Attorney, Western District of Tennessee.

At trial, the proof showed that the defendants promoted their business through a variety of Christian television and radio programs, including the Jim Baker Show and Jewish Voice. Larry Bates, a self-proclaimed doctor in economics, held conferences across the United States on the upcoming economic collapse and the need to invest in precious metals. Between 2007 and 2013, customers gave more than eighty-seven million dollars

to First American Monetary Consultants for the purpose of buying precious metals. During this same period, the proof showed the defendants diverted customers’ monies that were to be used to purchase their precious metals to the defendants own use and benefit. By 2009, testimony at trial showed that the company had more than twenty-six million dollars in unfilled customer orders.

The proof showed that the defendants used the customers’ money for a variety of purposes other than purchase of customers’ metals. Larry Bates diverted more than four million dollars to the creation of International Radio Network, a Christian radio network. Other monies were diverted to trading in commodities and the building of a ten-thousand square foot house on three hundred acres in Middleton, Tennessee. Still other customers’ monies were used to fulfill prior orders, which had not been fulfilled.

At trial, the evidence showed that Larry, Chuck and Robert Bates were sales people in the Memphis office and were responsible for taking in victim’s monies. More than forty-five witnesses testified about losing money to Larry Bates and First American Monetary Consultants. The victims, who lived all across the United States, testified that their money was to be used to purchase precious metals that they never received. For example, Judith Ponder, from Kerrville, Texas testified that she and her mother gave Larry Bates more than $1.8 million dollars to purchase precious metals and received little in return. Barbara Santiago, from Washington State, testified that she and her paraplegic son met Larry Bates at one of his conferences in Washington State. Ms. Santiago testified that she later invested more than two hundred and sixty-six thousand dollars from her son’s insurance settlement that was to be used for her son’s care. Ms. Santiago, likewise, received little of her purchase. And, Charles Grimsley, a pastor for the Veteran’s Administration in Mesa, Colorado, testified that he and his wife gave FAMC more than two hundred thousand dollars of their retirement money and received nothing in return.

The proof showed that many of the victims attempted to take possession of their gold and silver coins, only to be put off by the defendants for a variety of reasons. The excuses for the delays included that the gold and silver coins were scarce, the coins were coming from Europe, and the U.S. mint was shut down. In October 2013, a receiver was appointed to take over the affairs of First American Monetary Consultants. The receiver found that the company had few assets and was unable to compensate the hundreds of victims who had given money to Larry Bates and First American Consultants.

On Tuesday, September 5, 2017, U.S. District Judge Sheryl Lipman sentenced both father, and son, Charles Larry Bates and Charles "Chuck" Bates. Charles Larry Bates was sentenced to 262 months’ imprisonment and 3 years’ supervised release to begin after incarceration. He was ordered to pay $21,210,345.39 in restitution and a mandatory special assessment of $4,600. Larry Bates was convicted on all 46 counts in the indictment.

Chuck Bates was sentenced to 151 months’ imprisonment and 3 years supervised release. He was ordered to pay $19,649,731.70 to victims, along with a special assessment of $1,700. Chuck Bates was found guilty of 16 counts of mail and wire fraud, and one count of conspiracy.

On Wednesday, September 6, 2017, U.S. District Judge Sheryl Lipman sentenced Robert Bates and his wife, Kinsey Brown Bates. Robert Bates was convicted on one count of conspiracy and eight counts of mail and wire fraud. Robert Bates received a sentence of 151 months which he will serve consecutively to another criminal sentence, as well as three years supervised release. He was ordered to pay $19,659,911 in restitution, along with a mandatory special assessment of $900. Kinsey Brown Bates was sentenced to 63 months’ imprisonment, $9,526,199.95 in restitution, 3 years supervised release and $300 mandatory special assessment.

Acting United States Attorney Lawrence J. Laurenzi and Assistant United States Attorney David Pritchard prosecuted the case. The United States Postal Service and the Federal Bureau of Investigation investigated the case.

Memphis, TN – Patricia Parsons, 49, of Brighton, Tennessee, pleaded guilty to a one-count criminal information charging her with aiding and abetting solicitation to commit kidnapping. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.

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

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 his 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 an 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. Parsons’ 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 Parson’s 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 payment 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 resident, 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 associated 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.

Parsons faces a maximum penalty of 20 years’ imprisonment, a $125,000 fine and five years of supervised release. Sentencing is scheduled for December 1, 2017, before United States District Judge Sheryl H. Lipman.

This case was investigated by the FBI. Assistant U.S. Attorney Stephen Hall is prosecuting this case on the government’s behalf.

WHAT: Members of the Bates Family are scheduled to be sentenced to federal prison. Charles Larry Bates, father and his son, Charles Edward Bates. DATE: Tuesday, September 5, 2017 TIME: 9:30 a.m. – Charles Larry Bates
1:30 p.m. – Charles Edward Bates WHERE: Courtroom of the Honorable Sheryl H. Lipman
Clifford Davis Odell Horton Federal Building
167 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 required to RSVP to Cherri.Green@usdoj.gov.

Memphis, TN – Bobby McKinley, 27, of Memphis was sentenced to 235 months in federal prison for being a convicted felon in possession of a firearm. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, on February 9, 2016, at approximately 7:19 p.m. Memphis Police Officers observed the defendant operating a gold Honda Accord heading westbound on Vollintine with the bright lights on and facing incoming traffic. Law enforcement conducted a traffic stop and noticed the strong smell of marijuana emanating from the vehicle.

The defendant produced a Tennessee ID card. After checking their data base, MPD discovered that his driver’s license had been suspended. While searching the car, officers found a pill bottle containing 100 Alprazolam pills and a loaded Ruger .45 caliber pistol.

On August 31, 2017, the Honorable Sheryl H. Lipman sentenced McKinley, who had four prior violent felonies, as an armed career criminal to 235 months’ imprisonment and 3 years supervised release to begin after his incarceration.

This case was investigated by Project Safe Neighborhoods, the Memphis Police Department and the U.S. Attorney’s Office, who all work jointly to address gun-related crimes through aggressive investigation and prosecution.

Assistant U.S. Attorney J.William Crow prosecuted this case on the government’s behalf.

Memphis, TN – A former bank employee has pled guilty to embezzlement. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the plea today.

Lauren Melissa McDivitt, 46, of Covington, Tennessee, appeared before United States District Judge Sheryl H. Lipman and entered a guilty plea to a one-count information alleging she embezzled $888,470 between 2006 and 2016, from InSouth Bank where she was employed as the Branch Administrator at the 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 e-mail, 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 of various customers to cover amounts she had taken from other customers.

McDivitt faces up to 30 years’ imprisonment; one million dollar fine and 5 years supervised release.

This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carroll L. Andre III is prosecuting this case on the government’s behalf.

Memphis, TN – A Memphis real estate investor has been sentenced to 30 months in federal prison for his role in a scheme to fraudulently obtain mortgage loans. Lawrence J. Laurenzi, Acting U.S. Attorney, announced the sentence today.

An indictment returned last September by a federal grand jury alleged Thomas L. Boyd, 44, the owner of Wonderful Properties, LLC, made false statements and presented false documents to Regions Bank, First Tennesse Bank, Bank of America and Oak Tree Funding on behalf of persons who were financing the purchase of properties from Boyd and Wonderful Properties.

Boyd pled guilty in May to a charge of bank fraud and admitted at his plea hearing to making false statements to Regions Bank in connection with a mortgage loan being made to an individual who was financing the purchase of a property from Boyd.

In imposing the sentence yesterday, U.S. District Judge Sheryl H. Lipman also ordered Boyd to pay total restitution in the amount of $383,375.43 and to serve a 3-year term of supervised release following his release from prison.

The case was investigated by the FBI; Federal Housing Finance Agency (FHFA) – OIG; Department of Housing and Urban Development (HUD); Postal Inspection Service and IRS. Assistant U.S. Attorneys Carroll L. Andre III and Lorraine Craig prosecuted this case on the government’s behalf.

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Memphis, TN – Twelve members of the Conservative Vice Lords/Concrete Cartel Street Gang, a nation-wide street gang with its origin and home base in Chicago, Illinois, were charged in a federal indictment for Racketeering (RICO), business and pharmacy robberies and drug trafficking. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.

The indictment alleges that the Concrete Cartel and its members operate mainly in Memphis, Shelby County, Tennessee and North Mississippi. Its leadership consists of a regional/southern leader, a state-wide leader, a city-wide leader and community/division leaders in the areas of (Whitehaven, Orange Mound, East Memphis, South Memphis and North Memphis). Within the organization/street gang, there are different areas of responsibilities or roles: Ministers of Command, Chief Violators, Chiefs of Security, Chief Enforcers, Ministers of Literature, Lieutenants and foot soldiers. Members rise to these positions through acts of violence, including but not limited to: shootings, robbing, and drug and human trafficking. The Concrete Cartel encourages robbing businesses, mainly pharmacies, to take opioids and other Schedule II controlled substances to enrich themselves and the membership.

Davante Turner, William Pinkney, Markease Alexander, Nernest Nesby, Lashawn Shannon, Tondwin Lewis, Arterrious McCalleum, Travon Jones, Rickey Bell, Ariq Eric Rayford, Clemeko Dewayne Starks Jr., and Darnell Trevon Jordan are charged with committing multiple acts of business robberies while using firearms. The indictment alleges that on occasion the Concrete Cartel robbed pharmacies and would later distribute and sell the stolen opioids or controlled substances on the streets of Memphis and elsewhere. Along with the RICO charge, the defendants were also indicted for their participation in the following business robberies, using firearms:

On July 18, 2015, Davante Turner and others robbed CVS Pharmacy at 786 N. Germantown Parkway, Memphis, Tennessee. During this robbery, Turner and others took the following drugs: Oxycodone, Fentanyl and Methylphenidate.

On February 15, 2016, Ariq Eric Rayford, Clemeko Dewaye Starks Jr., and Darnell Trevon Jordan robbed Walgreens Pharmacy at 4653 Elvis Presley Blvd., Memphis, Tennessee. Rayford, Starks Jr., and Jordan attempted to take Roxicodone drugs.

On April 30, 2016,

Travon Jones, Nernest Nesby and Arterrious McCalleum robbed Mojo Vapors at 6522 Quince, Memphis, Tennessee; Exxon Mobil Gas Station at 6021 Mt. Moriah, Memphis, Tennessee; and CVS Pharmacy at 6620 Winchester Road, Memphis, Tennessee.

On May 1, 2016,

Travon Jones, Nernest Nesby and Arterrious McCalleum robbed Circle K at 7195 Winchester Road, Memphis, Tennessee, and Exxon at 6455 E. Shelby Drive, Memphis, Tennessee.

On July 22, 2016, Markease Alexander and others robbed CVS Pharmacy at 786 N. Germantown Parkway, Memphis, Tennessee. During the robbery, Alexander and others took the following drugs: Oxycodone, Oxymorphine and Oxymorphone. Lashawn Shannon distributed the drugs for Alexander and others.

On November 1, 2016, Markease Alexander, Ricky Bell and others robbed CVS Pharmacy at 2115 Union Avenue, Memphis, Tennessee. Bell, Alexander and others took the following drugs: Oxycodone and Acetaminophen, Dextroamphetamine, Oxycodone, Methylphenidate, Lisdexamfetamine and Oxycodone Hydrochloride.

On July 5, 2017, Davante Levert Turner, Tondwin Lewis and William Pinkney robbed CVS Pharmacy at 6620 Winchester Road, Memphis, Tennessee. Turner, Lewis and Pinkney attempted to take Roxicodone drugs.

The indictment is the result of an extensive investigation which began in 2015 by federal, state and local law enforcement officials into the Conservative Vice Lords/Concrete Cartel. This investigation entailed the recovery or seizures of thousands of opioids or controlled substances before the defendants distributed the drugs on the streets.

Lawrence J. Laurenzi, Acting U.S. Attorney, Western District of Tennessee, said, "Today’s indictment serves to demonstrate the commitment of our office and our law enforcement partners to curtail the onslaught of business robberies and to eradicate the violent criminal element from the Western District of Tennessee. As we have previously stated, gang activity will not be tolerated."

"Gangs will not run our city. We will continue to weed out the criminal elements that surround gang motivated crimes, and we will fully support our state and federal partners in prosecuting criminals to the fullest extent of the law" said Michael Rallings, Director, Memphis Police Department.

This case was investigated by the FBI’s Safe Street Task Force and the Multi-Agency Gang Unit of the Memphis Police Department and the Shelby County Sheriff’s Office. Assistant U.S. Attorney Kevin Whitmore 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 proven guilty.

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Memphis, TN – Michael Love has been indicted on charges of kidnapping and brandishing a firearm during the commission of a violent crime. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.

According to information in the indictment, in June 2015, December 2014, and March 2012, Love traveled from Mississippi to Memphis, Tennessee, to commit sexual assault, on each occasion holding a woman against her will and engaging in forced sexual intercourse. In March 2015, April 2014 and November 2013, Love used the Internet or a chat line to meet a woman, and again, on each occasion, held the woman against her will, and committed sexual assault. One of the alleged victims was a minor. It is also alleged that Love twice used a firearm during the commission of the crimes. Love is charged with six counts of kidnapping to commit sexual assault, and two counts of brandishing a firearm during a crime of violence.

Lawrence J. Laurenzi, Acting U.S. Attorney, Western District of Tennessee, said: "We have a moral responsibility to provide a community free from sexual assault. We will use all of our resources to bring these sexual offenders out of the darkness of their homes and into our criminal court system. The people who commit these crimes are cowards who will be prosecuted fully under the law."

A known sample of Love’s DNA was compared to existing DNA profiles in CODIS – the Combined DNA Index System. CODIS is a national database designed to help identify suspects in unsolved cases. Biological evidence collected during examination of a sexual assault victim is preserved in a Sexual Assault Kit, and ultimately, sent to a laboratory for analysis. Once the DNA profile is complete, it is placed into CODIS and regularly compared to profiles developed in other cases. The Memphis Police Department’s Sex

Crimes Bureau, DNA Cold Case Unit, developed Love as a suspect in the indicted cases in part, through use of DNA and CODIS technology.

Love also has matters pending in Shelby County Criminal Court, where he has been charged with rape, aggravated rate, aggravated kidnapping, criminal attempt - kidnapping and robbery.

This case was investigated by the Memphis Police Department (Sex Crimes, DNA Cold Case Unit) and the FBI. Assistant U.S. Attorneys Deb Ireland and Bryce Phillips are prosecuting this case on the government’s behalf.

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

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Memphis, TN – A former Crockett County Sheriff’s Deputy has been sentenced to 87 months in federal prison on cocaine trafficking and firearms charges. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to the indictment, on February 13, 2017, Calvin Fields aided and abetted others in the distribution of a mixture of substance containing a detectable amount of cocaine. Mr. Fields was in possession of a Glock. 40 caliber pistol in furtherance of the drug trafficking crime.

Federal agents arranged surveillance and saw Calvin Fields stationed in his patrol vehicle while on duty, providing security while cocaine was being delivered by an undercover cooperating source.

"No one is above the law. It is especially disheartening when those entrusted to protect and serve our communities commit criminal acts. Those who do so should know: We will use all our resources to come after you." said Lawrence J. Laurenzi, Acting U.S. Attorney, Western District of Tennessee.

The suspect was arrested on Friday, February 17, 2017, on a federal complaint. The federal grand jury in Jackson returned the indictment on February 21, 2017.

Johnie Carter, Special Agent in Charge, Violent Crime and Drug Task Force, 28th Judicial District said: "When a Law Enforcement Officer commits a criminal act, they violate the trust of the community as well as their fellow Law Enforcement Officers. It angers everyone involved and tarnishes the badge that 99% of officers work so hard at keeping polished. The West Tennessee Drug Task Force works very hard at ridding West

Tennessee of the dangerous drugs and violent crime and those who are responsible. A Law Enforcement Officer is no different and must face the same justice as anyone else."

On August 8, 2017, Chief United States District Judge S. Thomas Anderson sentenced Fields to 87 months’ imprisonment and 3 years supervised release. While sentencing Fields, Judge Anderson said "this case was one of the most troublesome cases of official corruption he had seen my time on the bench."

This case was investigated by members of the FBI Memphis Division’s Jackson Resident Agency, the Crockett County Sheriff’s Office and the 28th Judicial District Violent Crime and Drug Task Force. Assistant U.S. Attorney Matt Wilson prosecuted this case on the government’s behalf.

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An Arlington, Tennessee man was sentenced today to 18 months in prison and two years of supervised release for intentionally accessing a competing engineering firm’s computer network without authorization in order to obtain proprietary information.  Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting U.S. Attorney Lawrence J. Laurenzi of the Western District of Tennessee made the announcement.

 

Jason Needham, 45, co-owner of HNA Engineering, was sentenced before U.S. District Judge John T. Fowlkes Jr. of the Western District of Tennessee for intentionally accessing without authorization the computer networks of his former employer, Allen & Hoshall.  In addition to his prison term, Needham was ordered to pay $172,393.71 in restitution to Allen & Hoshall. 

 

“The Criminal Division is committed to ensuring that American businesses are protected from unauthorized access to their systems and information, and our ability to execute this mission is dependent on building a trusting relationship with private industry,” said Acting Assistant Attorney General Blanco.  “Allen & Hoshall’s robust cooperation and partnership with our prosecutors and agents in this case resulted in a successful outcome and ensured that Mr. Needham was held accountable for his criminal activity.”

 

“This case shows that law enforcement officials throughout the Western District of Tennessee will work together to ensure that individuals participating in any criminal act will be brought to justice,” said Acting U.S. Attorney Laurenzi.  “It is imperative that our business and corporate community remain protected from cybercrimes and other illegal security threats.  The corporate community is a vital part of growth and development for any city.  The professionals in the U.S. Attorney’s Office, Western District of Tennessee, will continue our mission to ensure the safety and security of our businesses and corporations in our district.  Security crimes will not be tolerated in this district.  We will come after you.”

 

A spokesperson for Allen & Hoshall stated, “We believe that computer crimes are serious and that pursuing and prosecuting violators in an ethical and responsible manner are important aspects of maintaining the safety and security of private, confidential information for everyone. We are grateful that the government conducted such a prosecution in this case.  We believe the Court’s sentence will send a clear message to Mr. Needham and the greater business community that cybercrimes, electronic snooping and otherwise accessing electronic information without authorization are real crimes that are unacceptable under the law and are subject to severe penalties.”

 

According to admissions made in connection with his guilty plea, Needham admitted to repeatedly accessing, over a nearly two-year period, Allen & Hoshall’s servers to download digitally rendered engineering schematics and more than 100 PDF documents containing project proposals and budgetary documents.  Needham also admitted to accessing, on hundreds of occasions, the email account of a former colleague at Allen & Hoshall, which provided Needham access to the firm’s marketing plans, project proposals, company fee structures and the rotating account credentials for the company’s internal document-sharing system.  According to the plea, Needham used his unauthorized access to view, download and copy proprietary business information worth over $500,000.

 

The FBI investigated the case.  Assistant U.S. Attorney Debra L. Ireland of the Western District of Tennessee and Senior Counsel Timothy C. Flowers of the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division prosecuted the case.

 

Memphis, TN –A Memphis man was sentenced to federal prison for Theft of Government Property and Forging United States Treasury Checks. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, and Tracey D. Montano, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation announced the sentence today.

On July 28, 2016, a 4-count federal indictment was filed against Paul Edward Robinson, 52, charging him with stealing United States Treasury federal income tax refund checks, forging endorsements and fraudulently cashing the checks. He was convicted of all 4-counts on April 5, 2017, following a 3-day jury trail.

Robinson was sentenced on August 2, 2017, by U.S. District Judge Samuel H. Mays, Jr., to 21-months in federal prison. As part of his sentence, Robinson was ordered to pay $87,429.43 in restitution and serve a 2-year term of supervised release following his release from prison.

This case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney Carroll L. Andre, III prosecuted this case on the government’s behalf.

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Jackson, TN – A Jackson, Tennessee Gangster Disciple was sentenced to 292 months in federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.

On July 31, 2017, Daniel Lee Cole, a/k/a "D-Money," 38, was sentenced to 292 months in federal prison for conspiracy to participate in racketeering activities. As part of his plea of guilty entered in December 2016, Cole admitted that he was a past Governor of the 731 region (Jackson, TN) and was also Literature Coordinator. Cole admitted to conspiring to distribute narcotics with the other 15 Gangster Disciples who were included in the indictment.

Cole further admitted to attacking and injuring a rival gang member in 2002; to pointing a handgun at a victim in 2014, while another Gangster Disciples struck the victim with a beer bottle and threatened to kill that victim for witnessing Gangster Disciples criminal activity; and to being involved in an incident where Gangster Disciples assaulted a victim for refusing to recant prior statements made to law enforcement that incriminated a senior member of the gang in 2015. During this last incident, Cole admitted that one of the gang members shot at a vehicle containing the witness and several passengers.

The Gangster Disciples is a highly-organized criminal street gang with nationwide reach. In addition to Tennessee, the gang reportedly operates in more than 35 states. The Gangster Disciples were organized into different positions, including board members, and governor-of-governors who each controlled geographic regions; governors, assistant governors, chief enforcers and chief of security for each state or regions within the state where the Gangster Disciples were active; and coordinators and leaders within each local group. The indictment alleges that the Gangster Disciples members and associates participated directly in the criminal activities of the enterprise – including murder,

kidnapping, assault, intimidation of witnesses and victims, narcotics distribution and weapons trafficking.

On the same day that Cole was sentenced, two other Gangster Disciples, Tommy Lee Wilkins, a/k/a "Tommy Gunz" and Byron Montrail Purdy, a/k/a "Ghetto," who were charged in the same indictment, pleaded guilty before U.S. District Judge John T. Fowlkes Jr., to conspiracy to participate in a racketeering enterprise. Wilkins and Purdy are the third and fourth of the 16 indicted defendants to plead guilty. Wilkins is scheduled to be sentenced by the Honorable John T. Fowlkes Jr., on November 17, 2017, at 9:30 a.m. and Purdy will be sentenced before the same Judge on December 1, 2017, at 9:30 a.m.

This case was investigated by the FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Tennessee Bureau of Investigation; JPD Gang Enforcement Team; Memphis Police Department; Shelby County Sheriff’s Office; 28th District West Tennessee Drug Task Force; 26th, 25th, and 30th Judicial District Attorney’s General’s Offices; Sheriff’s Offices for Tipton, Desoto, Madison, and Fayette Counties; and the Police Departments of Bartlett, Germantown and Columbia.

Assistant U.S. Attorney Beth Boswell and Special Assistant U.S. Attorney Sam Stringfellow prosecuted this case on the government’s behalf.

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Memphis, TN – A man charged with fatally shooting Memphis Police Department Officer Sean Bolton was sentenced today for being a convicted felon in possession of ammunition and armed carjacking. The defendant, Tremaine Wilbourn, 31, has pending state charges for capital murder. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentencing today.

On August 1, 2015, Wilbourn was in the passenger seat of a vehicle parked on a street in East Memphis when Officer Bolton approached the vehicle. Officer Bolton attempted to detain Wilbourn before the defendant pulled a 9mm pistol and shot Bolton several times.

Facts from hearings in the case outline that shortly after the shooting, Wilbourn used a firearm to carjack a man of a 2002 Honda Accord.

On July 28, 2017, the Honorable U.S. District Judge Sheryl H. Lipman sentenced Wilbourn to 25 years’ imprisonment and 3 years supervised release. Wilbourn also received an additional 30 months of incarceration for violating his supervised release, which is to run consecutive to his 25-year sentence.

The state charges against Wilbourn for the murder of Officer Bolton are pending.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives in conjunction with the Memphis Police Department. The U.S. Attorney’s Office prosecuted this case on the government’s behalf.

Jackson, TN – A Lake County man has been indicted on federal drug charges. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.

Agents with the Drug Enforcement Administration, along with the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tennessee Bureau of Investigation, and the Lake County Sheriff’s Department arrested Will Jones in the early morning hours of July 27, 2017, in Lake County, Tennessee.

A federal grand jury in Jackson, Tennessee returned a three count indictment against Jones for distributing actual methamphetamine ("ice") on July 17, 2017, but the indictment remained under seal until yesterday’s arrest.

This arrest was the result of an approximately 10-month investigation in which law enforcement officials have seized over a kilo of actual methamphetamine, approximately $148,000 dollars in cash, a loaded handgun and three vehicles.

If convicted, Jones faces up to life imprisonment and $20,000,000 fine.

This case is being investigated by Drug Enforcement Administration, Tennessee Bureau of Investigation and Lake County Sheriff’s Department. Assistant U.S. Attorneys James Powell and Beth Boswell are 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.

 

Memphis, TN – The former Chief Accounting Officer for a Memphis business conglomerate was sentenced to 33 months in federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.

Jim Tyson "Ty" Jenkins, 46, pleaded guilty in April to mail fraud. According to information presented in court at the time of his guilty plea, Jenkins, the former Chief Accounting Officer for Blake Enterprises, defrauded Blake and an affiliate company, Reliable Finance, of approximately $1.1 million between 2011 and March 2017. Jenkins carried out the fraud by authorizing loans against the cash values of life insurance policies issued by Voya Financial and owned by the Reliable Finance retirement plan.

In addition to his duties as CAO, Jenkins was administrator for Reliable’s retirement plan. Jenkins contacted Voya and requested loans against the policies. Voya mailed loan proceeds checks to Reliable. Jenkins deposited the checks to Reliable bank accounts at First Tennessee Bank and InSouth Bank. Jenkins, who was authorized to transact business on the accounts, thereafter stole the funds by writing checks payable to himself, depositing them to his personal account at Regions Bank, and using the funds for his personal benefit.

On July 28, 2017, the Honorable John T. Fowlkes Jr., sentenced Jenkins to 33 months in federal prison. As part of his sentence, Jenkins was also ordered to pay $999,020.82 in restitution and serve a 3-year term of supervised release following his release from prison.

This case was investigated by the United States Postal Inspection Service. Assistant U.S. Carroll L. Andre III prosecuted this case on the government’s behalf.

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Memphis, TN – Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced today 19 indictments charging 22 defendants with illegal possession of firearms and use of firearms during violent crimes.

"At the ‘Fed Up’ press conference, held earlier this week, local, state and federal agencies pledged to exhaust every available resource to bring criminals to justice. These indictments represent our stated commitment to aggressively pursue people who illegally possess firearms. Our community is ‘Fed Up’ with mindless violence and we will work tirelessly to ensure safer communities for all of our citizens," said Lawrence Laurenzi, Acting U.S. Attorney, Western District of Tennessee.

These cases were collective investigative efforts of the Safe Streets Task Force, which includes the Memphis Police Department; Shelby County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI and the U.S. Attorney’s Office. The Project Safe Neighborhood (PSN) Task Force includes the Shelby County District Attorney’s Office; Memphis Police Department; the Shelby County Sheriff’s Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Attorney’s Office. These organizations all work jointly to address gun-related crimes through aggressive investigation and prosecution. The PSN Task Force meets weekly to examine every gun crime committed in Shelby County as well as gun crimes from other counties submitted by the ATF.

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

 

Memphis, TN – The United States charged a Memphis man for committing bank fraud against various banks in the Memphis and West Tennessee area. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the plea today.

According to the charging instrument, from December 2011 through February 2014, Baron Marshall owned Southwind Auto Sales ("Southwind"). Marshall and unknown co-conspirators, not charged, participated in a deceptive scheme to defraud Shelby County Federal Credit Union, Regions Bank and Bank of Fayette County ("Banks") by applying for loans for associates to purchase luxury vehicles from Southwind.

Marshall would receive the funds from the Banks and then refused to produce vehicle titles to the Banks, and in some instances, released bank liens. As a result of the scheme, the banks collectively suffered a loss of over $244,000.

Marshall pled guilty to one count of bank fraud during the referenced time period. The maximum penalty for bank fraud is 30 years in prison and a $1,000,000 fine. The sentencing hearing will be held on October 6, 2017.

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

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Memphis, TN – Marcus Dotson, 28, has been sentenced to 78 months in federal prison for illegal possession of ammunition. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented at trial, on the evening of February 5, 2016, the Memphis Police Department responded to an aggravated assault call at Riverside Community Center on 1891 Kansas Street. The community center’s recreation leader informed law enforcement that around 6 p.m., he was overseeing a scrimmage basketball game that was set to begin in the gymnasium between boys ranging in ages from 6 to 10. Before the game began, Marcus Dotson, 27, and his 14-year old nephew, entered the gym in search of a 16-year old victim.

Dotson, a convicted felon at the time of the incident, became embroiled in an argument with patrons on the bleachers, brandished the firearm at the crowd, and fired one shot into the ceiling. Both Dotson and his nephew fled the scene. An arrest warrant was issued for Dotson. He was apprehended two weeks later.

As a result of the Memphis Police Department’s investigation, one Speer .40 caliber shell casing was recovered from the gymnasium. The investigation also yielded surveillance of Dotson running from the gymnasium after the shooting, as well as witness’ identification of the defendant from a photo line-up.

On July 25, 2017, the Honorable Samuel H. Mays sentenced Dotson to 78 months’ confinement and 3 years supervised release to begin after his incarceration. Dotson currently has state criminal charges pending. The federal and state sentences will run concurrently.

The case was investigated by the Memphis Police Department’s Project Safe Neighborhoods Unit. Assistants U.S. Attorneys Karen Hartridge and Jerry Kitchen prosecuted this case on the government’s behalf.

 

Jackson, TN - Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced today the unsealing of an indictment charging 12 suspects with federal drug trafficking violations.

The suspects were arrested earlier today during a round-up conducted by members of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Tennessee Bureau of Investigation (TBI), the Tennessee Highway Patrol (THP), the 24th Judicial District Drug Task Force, the Jackson-Madison County Metro Narcotics Unit, both the Jackson and Madison County SWAT teams, and the McNairy County Drug Task Force. The twelve defendants named in the indictment are crystal methamphetamine traffickers.

The indictment was returned by a federal grand jury in Jackson on July 17, 2017, but remained sealed until today’s arrests. The indictment contains counts alleging violations of the Controlled Substances Act, counts alleging illegal possession of firearms after being convicted of a felony, as well as counts for possession of firearms in furtherance of a drug trafficking crime.

The suspects arrested during the operation are:

• Kevin Smith, 44, Saltillo, TN;

• Phillip Steely, 51, Jackson, TN;

• Deena Orr, 38, Huntingdon, TN;

• Steven Jones, 41, Reagan, TN;

• Heather Walker, 36, Parsons, TN;

• Dina Evans, 54, Decaturville, TN;

• Doug Evans, 52, Bath Springs, TN;

 

• Rhonda Carter, 48, Iuka, MS;

• Ashley Sweat, 39, Adamsville, TN (already in custody on state charges);

• David Mathis, 50, Lexington, TN;

• Jennifer Holley-Melton, 42, Lutts, TN

Lawrence J. Laurenzi, Acting U.S. Attorney, Western District of Tennessee, said: "Along with our federal, state and local partners, the U.S. Attorney’s Office will continue to use every lawful tool we have to take violent offenders and drug traffickers off our streets. We will bring criminals to justice. That’s our commitment to the citizens in the Western District."

Count 1 charges Kevin Smith, Phillip Steely, Joshua Tucker, Deena Orr, Steven Jones, Heather Walker, Dina Evans, Doug Evans, Rhonda Carter, Ashley Sweat, David Mathis and Jennifer Holley-Melton with conspiracy to possess with the intent to distribute 50 grams or more of actual methamphetamine.

Count 2 charges Kevin Smith, Phillip Steely, Joshua Tucker, Deena Orr, Steven Jones, Heather Walker, Dina Evans, Doug Evans, Rhonda Carter, Ashley Sweat, David Mathis and Jennifer Holley-Melton with aiding and abetting each other to possess with the intent to distribute 50 grams or more of actual methamphetamine.

Count 3 and 4 charges Kevin Smith with knowingly distributing actual methamphetamine and knowingly distributing over 50 grams of actual methamphetamine.

Count 5 charges Kevin Smith, Deena Orr and Phillip Steely with knowingly possessing with intent to distribute 5 or more grams of actual methamphetamine.

Count 6 charges Joshua Tucker with knowingly possessing with intent to distribute 50 grams or more of actual methamphetamine.

Counts 7 and 8 charge Joshua Tucker with being a felon in possession of an AR-15 style rifle and a 9 mm pistol.

Counts 9 and 10 charge Joshua Tucker with possessing two firearms in furtherance of a drug trafficking offense.

During the course of the over 9-month investigation, law enforcement officials have seized illicit narcotics, 5 firearms, 5 vehicles and $7,600 dollars in cash.

The charges in the indictment stem from the illegal activity of participating in a conspiracy to distribute and to possess with the intent to distribute ice (methamphetamine with more than 80% purity).

"This case is a great example of local, state and federal agencies working together on multi-jurisdictional investigations, targeting violent drug organizations preying on the citizens of West Tennessee. The subjects of this investigation were responsible for the distribution of large quantities of crystal methamphetamine. The dismantlement of this

organization should send a clear message that law enforcement and federal prosecutors are here to attack these threats with everything at our disposal," said Jim Catalano DEA Resident Agent in Charge.

The case was investigated by the Drug Enforcement Administration, along with the Tennessee Bureau of Investigation, the 24th Judicial District Drug Task Force, and Jackson-Madison County Metro Narcotics. Assistant United States Attorneys Taylor Eskridge and Beth Boswell are 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.

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Memphis, TN - A former Shelby County Sheriff’s Office deputy has been indicted for soliciting a person to murder a witness in a federal case. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the superseding indictment 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 March, additional charges were added to the indictment, which alleged an incident of extortion of another alleged drug dealer in late 2013.

The Shelby County Sheriff’s Office has since received information that Drewery solicited a person to kill one of the witnesses in the earlier indictment and notified the FBI.

Drewery was assigned to the Shelby County’s Sheriff’s Office’s Narcotics Task Force, but has since been terminated from the department.

On Thursday, July 13, 2017, Drewery had his initial appearance in federal court before U.S. Magistrate Judge Charmiane G. Claxton.

Drewery is charged with two counts of Hobbs Act Extortion; two counts of Receipt of a Bribe by a Government Agent; and one count of Solicitation to Commit a Crime of Violence.

If convicted, he faces up to 20 years in federal prison and a fine of up to $250,000.

This case is being 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.

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

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Jackson, TN – Caricus Hendrix, 30, was sentenced to 180 months in federal prison for being a felon in possession of a firearm. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, on August 8, 2016, investigators with the Jackson Police Department (JPD) observed a vehicle parked in the parking lot of Pandora’s Box blocking the flow of traffic. When investigators approached the vehicle, Hendrix admitted that he had an open container of alcohol and that a firearm was in the center console of the vehicle.

A search of Hendrix revealed "Molly" or ethylone. The firearm, a Smith and Wesson 9mm pistol, was found to be stolen out of Murfreesboro, Tennessee.

On July 12, 2017, the Honorable J. Daniel Breen sentenced Hendrix, who had three prior serious drug offense convictions, as an Armed Career Offender to 15 years’ confinement and a total of 3 years supervised release to begin after his incarceration.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Jackson Police Department and the U.S. Attorney’s Office, who have all worked jointly to address gun-related crimes through aggressive investigation and prosecution. Assistant U.S. Attorney Taylor Eskridge prosecuted this case on the government’s behalf.

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Jackson, TN – Preston Bryson, 40, was sentenced to 180 months in federal prison for being a felon in possession of a firearm. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, on September 1, 2016, members of the West Tennessee Violent Crimes and Drug Task Force, attempted to serve an outstanding parole violation warrant on Bryson in Humboldt, Tennessee, when Bryson fled on foot. Agents apprehended him a short distance away and found methamphetamine and cocaine near where Bryson fled.

Agents later located a North American Arms .22 caliber revolver in the same area after Bryson, in a recorded jail call, admitted that he had thrown a "strap" in the wood line while fleeing from agents.

On July 12, 2017, the Honorable J. Daniel Breen sentenced Bryson, who had three prior serious drug offense convictions, as an Armed Career Offender to 15 years’ confinement and a total of 5 years supervised release to begin after his incarceration.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the West Tennessee Violent Crimes and Drug Task Force; and the U.S. Attorney’s Office, who have all worked jointly to address gun-related crimes through aggressive investigation and prosecution.

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

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Memphis, TN – A woman who made false statements during the purchase of a firearm has been sentenced to six months in federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, on October 22, 2015, Ashley Jones, 27, purchased a Romarm Cugir 7.62 X 39mm caliber pistol from Guns & Ammo in Memphis, TN. At the time of purchase, Jones completed and signed a federal form indicating she was the actual buyer of the firearm and was not acquiring the firearm on behalf of another person. The defendant was charged with making a false statement during the purchase of a firearm, violating Title 18, United States Code, Section 922-(a)(6).

On February 25, 2016, two victims were robbed at gunpoint of $16,000 cash in the area of Joslyn Street and Hillwood. The victims planned to use the cash to purchase a 2010 Chevrolet Silverado pickup truck which had been listed on Craigslist. During the robbery, the victims were approached by three males armed with guns. The victims struggled with the robbers, closed the doors to their vehicle and sped away. One of the suspects fired several shots at the victims as they departed. The vehicle was hit by seven gunshots; however, there were no physical injuries to the victims.

At the crime scene, the investigating officers found nine shell casings and a Romarm Cugir that was left behind by the suspects. During the investigation, ATF learned Jones was the owner of the firearm.

On April 1, 2016, the defendant was arrested when an investigation of another Craigslist robbery led to her residence, where drugs and guns were recovered. During an interview with law enforcement, Jones stated that her boyfriend, Jackie Spears, gave her money to purchase the Romarm Cugir pistol. She also stated that Spears was present at the time of

purchase at the gun store and she subsequently gave him the firearm. According to Jones, Spears had given her money in the past to purchase firearms. It was later determined that at the time of purchase, Spears was a convicted felon. Spears is currently charged in state court for participating in one of the robberies.

On Friday, July 7, 2017, U.S. District Judge Sheryl H. Lipman sentenced Ashley Jones to six months in federal prison.

"This case shows that law enforcement officials throughout the Western District of Tennessee will work together to ensure that individuals participating in any criminal act with firearms will be brought to justice" said Lawrence Laurenzi, Acting U.S. Attorney, Western District of Tennessee.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Multi-Agency Gang Unit. Assistant U.S. Attorney Marques Young prosecuted this case on the government’s behalf.

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Memphis, TN – The "Gangster Disciples" Chief of Security involved in the violent shooting that occurred at Hillview Apartments was sentenced to 263 months in federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.

As Chief of Security, Edwin Carvin aka "Ren," was responsible for ensuring the security of fellow gang members and providing protection from law enforcement or rival gangs. The Gangster Disciples are a violent criminal gang which began in the Chicago, Illinois area. In the 1970’s, the leaders of two different Chicago-based gangs, the Black Disciples and the Supreme Gangsters, aligned their respective groups and created the Gangster Disciples.

Once united, the Gangster Disciples began recruiting heavily in Chicago, within Illinois jails and prisons, and throughout the United States. By the mid-1980’s, the group had spread throughout the Midwestern and Eastern United States. The Gangster Disciples are active in approximately 35 states including Tennessee.

According to information presented at sentencing, on June 21, 2014, Florence Anthony, a member of the Gangster Disciples, got into an altercation with a group of individuals at the Hillview Apartments located in Memphis, Tennessee. Anthony reported the confrontation to her Gangster Disciples chain-of-command. Based on Anthony’s report, the Gangster Disciples chain-of-command issued orders to retaliate against those responsible for the attack on Anthony and her children.

At approximately 10:30 p.m., Carvin and four other members of the Gangster Disciples returned to the Hillview Apartments to retaliate against what were identified as rival gang members. Each individual was armed with firearms and proceeded on foot through the

apartments shooting four juveniles and one adult male. All five victims survived, but some sustained serious bodily injuries.

The defendants and their respective sentences:

• Florence Anthony, aka "Nikki," 135 months;
• Edwin Carvin, aka "Ren," 263 months;
• Robert Mallory, aka "Rambo," 292 months;
• Brandon Milton, aka "Lil Folk," 262 months;
• Erik Reese, aka "E," 382 months

The case was investigated by the Federal Bureau of Investigation, the Multi-Agency Gang Unit, Police Departments for Memphis, Bartlett and Germantown; Sheriff’s Offices for Tipton, Desoto and Shelby; and the Tennessee Bureau of Investigation Crime Lab.

Assistant U.S. Attorneys Jerry Kitchen, Michelle Kimbril-Parks, and Special Assistant U.S. Attorney Sam Stringfellow prosecuted this case on the government’s behalf.

Jackson, TN – Marvin Steinberg, 38, was sentenced to 110 months in federal prison for possession with intent to distribute methamphetamine and being a felon in possession of firearms. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, on November 6, 2015, members of the Henry County Sheriff’s Office executed a search warrant at Steinberg’s home in Paris, Tennessee, because of suspected methamphetamine and firearm possession.

Upon execution of the warrant, officers located six firearms, ammunition, and a loaded AK magazine. Officers also found methamphetamine along with digital scales, pipes, a "bong" and a gas mask. Steinburg, who was present, admitted to officers that the methamphetamine and some of the firearms were his.

On June 29, 2017, the Honorable J. Daniel Breen sentenced Steinberg to nearly 10 years’ confinement and received a total of 3 years supervised release to begin after his incarceration.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Henry 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. Assistant U.S. Attorney Taylor Eskridge prosecuted this case on the government’s behalf.

Memphis, TN – A Memphis man pleaded guilty to committing bank fraud against financial institutions in the Memphis area. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the conviction 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. The fraud consisted of 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 closed accounts totaling $110,831.95 were deposited into accounts at the banks. Immediately after deposits were made in the banks, withdrawals were made by Garner and others not named in the indictment. Garner would give co-conspirators some of the proceeds withdrawn from the banks.

Garner pled guilty to two counts of bank fraud during the five-year period. The maximum penalty for bank fraud is 30 years in prison and a $1,000,000 fine. The sentencing hearing will be held on September 28, 2017.

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

Memphis, TN – On June 29, 2017, a federal grand jury returned a four-count indictment against 30-year-old Cortez Armstrong, aka "B.B.," for distribution of a variety of narcotics including fentanyl which resulted in the death of 21-year-old Z.R. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.

According to the indictment, on or about October 9, 2016, Armstrong distributed fentanyl to Z.R. The victim’s body was discovered by law enforcement during the early morning hours of October 10, 2016 at 3799 Shelby Drive, Memphis, Tennessee. The cause of Z.R.’s death was determined to be the result of a fentanyl overdose.

"Pursuant to federal law, a person who distributes fentanyl which causes the death of the buyer is criminally responsible for the buyer’s death even though the drug dealer did not intend to harm the buyer. Last year the Mid-South lost far too many lives to drug overdoses. Law enforcement will not sit idly by while the death toll continues to rise," said Acting U.S. Attorney Lawrence J. Laurenzi.

The penalty for distribution of fentanyl where death or serious bodily injury results is not less than 20 years in prison, but if the defendant has a prior felony drug conviction then life.

This case is being investigated by the Drug Enforcement Administration (DEA) and Memphis Police Department. Assistant U.S. Attorneys Michelle Kimbril-Parks and J. William Crow are prosecuting this case on the government’s behalf.

Memphis, TN – Twenty-two members and associates of the Grape Street Crips/The Peda Roll Mafia were charged by a federal grand jury with multiple drug and money laundering offenses. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the unsealing of the two federal-indictments today.

The indictments allege that seventeen of the defendants are members of, or associated with, the Memphis Peda Roll Mafia, a local street gang that distributes multiple types of illegal drugs in and around the Memphis area. Law enforcement first identified the gang operating around the Bella Vista Apartment complex in Memphis. The indictment further alleges that Fred McCaster Jr., a/k/a/ the "Original Gangster," directs the activities of the Memphis gang. John Shields, O.B. Hildson, Ivory Tripplett Jr., Clyde Wade III, Rayhem Jones, Darrin Beecham, Jeremy Davis and Antonion Fisher are members of the Peda Roll Mafia, while Jerry McMaster, Jeremy Davis, Antonion Fisher and Damion Cox are associated with the Peda Roll Mafia.

Five people named in the indictments reside in California and are members or associates of the Grape Street Crips / Peda Role Mafia, a gang that engages in drug trafficking nationwide. The indictment alleges that Reginald Wright, Sr., Reginald Wright, Jr., Brandon Curcio, Donnell Tousant and Tyrell Chance are members in California. According to court papers filed in Chicago, Eric Avendano is connected to the Mexican cartels. Brothers Eric J. Avendano and Calvin Avendano are U.S. citizens.

During the investigation, law enforcement officials determined that members of the Peda Roll Mafia established a pipeline of illegal drugs throughout the Mid-South area. As members of the Grape Street Crips, they supplied heroin, marijuana, methamphetamine, cocaine and various other pharmaceutical drugs to the Peda Roll Mafia gang who then

distributed the drugs throughout the Western District of Tennessee and the Mid-South area.

The two indictments are the result of an extensive investigation by federal, state and local law enforcement officials into the Peda Roll Mafia, which began in 2013.

Larry Laurenzi, Acting U.S. Attorney, said, "Today’s arrests demonstrate the commitment of law enforcement partners to remove the violent criminal element from the Western District of Tennessee. Gang activity will not be tolerated."

"ATF along with its partners work diligently to protect the public from these senseless acts of violence. ATF will remain vigilant as we engage with the community and foster a safe environment. Support from the public is crucial as the reporting of illegal activity is encouraged through ATF’s report it phone app," said Steve Gerido, Special Agent-In-Charge.

The defendants in custody are:

• Eric J. Avendano, a/k/a "Menace"
• Reginald Wright Jr., a/k/a "Reg" a/k/a "Unc"
• Reginald Wright Sr., • Montrell Ray Bernard, a/k/a "Big Ray" a/k/a/ "Ray"
• Donnell Tousant, a/k/a/ "Don"
• Fred McCaster Jr., a/k/a "Boo Dirty" a/k/a/ "Dirty" a/k/a "OG"
• John Shields, a/k/a "John John" a/k/a "John Juan"
• Ivory Triplett Jr, a/k/a "Woodie" a/k/a "Woodie Grape"
• Jeremy Davis
• Raheym Jones
• Antonio Fisher
• Darrin Beecham
• Lucinda Sanders
• Tameka Joyner McCaster
• Brandon Curcio
• Tonja Hosey

AVENDANO INDICTMENT

Count 1 charges Calvin Avendano, Eric Avendano, Montrell Ray Bernard, Donnell Tousant, Tyrell Chance, Fred McCaster, John Shields, O.B. Hildson, Clyde Wade III, Ivory Tripplett Jr., Jeremy Davis and Jerry Sherrod McCaster with conspiracy to possess with the intent to distribute one (1) kilogram of heroin.

Count 2 charges Calvin Avendano, Eric Avendano, Montrell Ray Bernard, Donnell Tousant, Tyrell Chance, Fred McCaster, John Shields, O.B. Hildson, Clyde Wade III, Ivory Tripplett Jr., Jeremy Davis, Jerry Sherrod McCaster, Raheym Jones and Antonio Fisher

with conspiracy to possess with the intent to distribute five (5) kilograms of cocaine.

Count 3 charges Calvin Avendano, Eric Avendano, Montrell Ray Bernard, Donnell Tousant, Tyrell Chance, Fred McCaster, John Shields, O.B. Hildson, Clyde Wade III, Ivory Tripplett Jr., Jeremy Davis, Jerry Sherrod McCaster, Raheym Jones and Antonio Fisher with conspiracy to possess with the intent to distribute 500 grams of methamphetamine.

Count 4 charges Calvin Avendano, Eric Avendano, Donnell Tousant and Clyde Wade III with possession with intent to distribute 500 grams of methamphetamine.

Count 5 charges Calvin Avendano, Eric Avendano and Clyde Wade III with possession with intent to distribute 500 grams of methamphetamine.

Count 6 charges Calvin Avendano, Eric Avendano, John Shields and Jeremy Davis with possession with intent to distribute one (1) kilogram of heroin.

Count 7 charges Calvin Avendano, Eric Avendano and O.B. Hildson with possession with intent to distribute 500 grams of cocaine.

Count 8 charges Calvin Eric Avendano, Montrell Ray Bernard, Tyrell Chance and Fred McCaster with possession with intent to distribute 100 grams of heroin.

Count 9 charges Calvin Avendano, Eric Avendano, Fred McCaster, John Shields, O.B. Hildson, Clyde Wade III, Jeremy Davis, Jerry Sherrod McCaster, Raheym Jones and Antonio Fisher with conspiracy to commit money laundering.

WRIGHT INDICTMENT

Count 1 charges Reginald Wright Jr., Reginald Wright Sr.,Montrell Ray Bernard, Donnell Tousant, Tyrell Chance, Fred McCaster, John Shields, O.B. Hildson, Clyde Wade III, Ivory Tripplett Jr., Jerry Sherrod McCaster, Raheym Jones, Damion Cox, Lucinda Sanders, and Antonio Fisher with conspiracy to possess with the intent to distribute marijuana.

Count 2 charges Reginald Wright Jr., Reginald Wright Sr., Montrell Ray Bernard, Donnell Tousant, Tyrell Chance, Fred McCaster, John Shields, O.B. Hildson, Clyde Wade III, Ivory Tripplett Jr., Jerry Sherrod McCaster, RaheymJones, Damion Cox, Lucinda Sanders, and Antonio Fisher with conspiracy to possess with the intent to distribute hydrocodone.

Count 3 charges Reginald Wright Jr., Reginald Wright Sr., Montrell Ray Bernard, Donnell Tousant, Tyrell Chance, Fred McCaster, John Shields, O.B. Hildson, Clyde Wade III, Ivory Tripplett Jr., Jerry Sherrod McCaster, Raheym Jones, Damion Cox, Lucinda Sanders, and Antonio Fisher with conspiracy to possess with the intent to distribute oxycodone (OxyContin).

Count 4 charges Reginald Wright Jr. and Montrell Ray Bernard with possession with the intent to distribute marijuana.

Counts 5 and 6 charge Reginald Wright Jr. and O.B. Hildson with possession with the intent to distribute marijuana.

Count 7 charges Reginald Wright Jr. and John Shields with possession with the intent to distribute marijuana.

Count 8 charges Reginald Wright Jr. and Lucinda Sanders with possession with the intent to distribute marijuana.

Count 9 charges Reginald Wright Jr., Reginald Wright Sr., Fred McCaster, John Shields, O.B. Hildson, Clyde Wade III, Ivory Tripplett Jr., Jerry Sherrod McCaster, Damion Cox, Lucinda Sanders, Darrin Beecham, Brandon Curcio and Antonio Fisher with, conspiracy to commit money laundering.

Count 10 charges Fred McCaster Jr and Tonja Hosey with, conspiracy to structure currency deposits.

The investigation resulted in the seizure of 11,950 grams of marijuana, 3,270 grams of cocaine, 2,880 grams of heroin, and 3,260 grams of methamphetamine.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Drug Enforcement Administration (DEA); U.S. Marshals Service; Multi-Agency Gang Unit; Memphis Police Department; and the Shelby County Sheriff’s Office. Assistant U.S. Attorneys Kevin Whitmore and Mark Erskine 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 proven guilty.

Memphis, TN – Two members of the violent "Gangster Disciples" street gang were sentenced to federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentences today.

The Gangster Disciples are a violent criminal gang which began in the Chicago, Illinois area. In the 1970’s, the leaders of two different Chicago-based gangs, the Black Disciples and the Supreme Gangsters, aligned their respective groups and created the Gangster Disciples.

Once united, the Gangster Disciples began recruiting heavily in Chicago, within Illinois jails and prisons, and throughout the United States. By the mid-1980’s, the group had spread throughout the Midwestern and Eastern United States. The Gangster Disciples are active in approximately 35 states including Tennessee.

According to information presented at sentencing, on June 21, 2014, Florence Anthony, a member of the Gangster Disciples, got into an altercation with a group of individuals at the Hillview Apartments located in Memphis, Tennessee. Anthony reported the confrontation to her Gangster Disciples chain-of-command. Based on Anthony’s report, the Gangster Disciples chain-of-command issued orders to retaliate against those responsible for the attack on Anthony and her children.

At approximately 10:30 p.m., Erik Reese and four other members of the Gangster Disciples returned to the Hillview Apartments to retaliate against what were identified as rival gang members. Each individual was armed with firearms and proceeded on foot through the apartments shooting four juveniles and one adult male. All five victims survived, but some sustained serious bodily injuries.

On March 8, 2017, seven members of the Gangster Disciples pled guilty to committing violent crimes in aid of racketeering activity.

On June 22, 2017, Senior District Judge Samuel H. Mays sentenced Florence Anthony to 135 months in federal prison, along with 3 years’ supervised release. Erik Reese was sentenced to 382 months imprisonment and 3 years’ supervised release.

The case was investigated by the Federal Bureau of Investigation, the Multi-Agency Gang Unit, Police Departments for Memphis, Bartlett and Germantown; Sheriff’s Offices for Tipton, Desoto and Shelby; and the Tennessee Bureau of Investigation Crime Lab.

Assistant U.S. Attorneys Jerry Kitchen and,Michelle Kimbril-Parks, and Special Assistant U.S. Attorney Sam Stringfellow, prosecuted this case on the government’s behalf.

Jackson, TN – Jeffrey Whitehead and Keenan Kendall were sentenced to 149 months in federal prison for being felons in possession of firearms. Lawrence J. Laurenzi, Acting U.S. Attorney, announced the sentences today.

According to information presented in court, on January 5, 2016, members of the Henry County Sheriff’s Office executed a search warrant at the Springville, TN., home of Jeffrey Whitehead, 29, because of suspected marijuana distribution from the home. Upon execution of the warrant, Whitehead, who was present, told the officer that he had marijuana in the house and a few firearms. Whitehead told officers that he knew he was not allowed to be in possession of any firearms. A search of the home and Whitehead’s truck revealed 45.4 pounds of marijuana, $4,500 in cash, and digital scales, along with 6 firearms.

On January 27, 2017, officers with the Henry County Sheriff’s Office executed a search warrant at the home of Keenan Kendall, 40, on suspicion of marijuana distribution. A search of the home in Paris, TN., revealed two sets of digital scales, marijuana and a loaded firearm.

On June 22, 2107, the Honorable J. Daniel Breen sentenced both Whitehead and Kendall. Whitehead received a sentence of more than 7 years in federal prison and 3 years supervised release. Kendall was sentenced to nearly 5 years in federal prison and received a total of 3 years supervised release.

These cases were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Henry 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. Assistant U.S. Attorney Taylor Eskridge prosecuted these cases on the government’s behalf.

Memphis, TN – A man responsible for distributing a large amount of heroin that resulted in the fatal overdose of one person has been convicted of distributing heroin. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced today.

According to information presented in court, on June 7, 2017, a federal grand jury returned a superseding indictment charging Marvin Foster with five counts for violating Title 21, United States Code, Section 841 (a)(1). According to the superseding indictment, Marvin Foster, aka "Pookie," 49, of Halls, Tennessee, distributed heroin to C.T. and the heroin distributed by Foster was the cause of C.T.’s death.

On June 16, 2017, Foster plead guilty to Count 1 of the superseding indictment. Had the case proceeded to trial, the United States would have shown that:

On or about July 1, 2014, Foster sold heroin to C.T.; C.T. used the heroin and overdosed. Subsequently, Foster drove C.T.’s truck, with C.T. in the truck, to a rural area, where Foster left the victim. On July 2, 2014, a farmer saw the truck and called police. The police arrived and found C.T. was dead. A medical examiner would have testified that the cause of death was heroin toxicity. Furthermore, C.T.’s blood was analyzed by a forensic toxicology lab and showed a lethal amount of heroinwas present in the blood. In addition, the United States would have presented witnesses that would have testified that Foster sells heroin and pills, and that Foster obtained heroin from a source of supply in Nashville.

Foster and the United States have recommended a 25-year sentence of imprisonment.

This case is being investigated by the 25th Judicial Drug Task Force and Drug Enforcement Administration. Special Assistant U.S. Attorney Sam Stringfellow and Assistant U.S. Attorney Beth Boswell are prosecuting this case on the government’s behalf.

Memphis, TN – A Somerville woman was sentenced to 36 months imprisonment for theft of government funds. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, Tenika Finnie-Smith, owner of Elite Tax Service, was a repeat felony offender who stole the identities of tax-payers. Without the knowledge or permission of the taxpayer, Smith used clients’ personal information to file 2011 and 2012 false tax returns with the Internal Revenue Service. Smith also listed false claims on tax returns and made deposits.

From 2011 and 2012, Smith deposited more than $190,000 in tax refunds into her personal bank account. She would immediately withdraw the funds to use for gambling and other personal benefits without notifying tax-payers. As a result of the theft, some tax-payers never received a refund.

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

 

Jackson, TN – George Ward, 49, was sentenced to 11 years in federal prison for possession of prescription pills with intent to distribute. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, George Ward, 49, of Jackson, Tennessee, unlawfully possessed with intent to distribute large quantities of Morphine, Amphetamine, Zolpidem(Ambien), Hydrocodone, Methadone, Alprazolam (Xanax), and Hydromorphone.

In February 2013, the Jackson Police Department (JPD) Gang Enforcement Team and the Jackson-Madison County Narcotics Unit executed a search warrant at a house as part of an ongoing narcotics investigation involving the defendant. Ward was present at the location during the search warrant’s execution. Law enforcement agents determined that he was staying in the house’s guest bedroom. While searching the room, law enforcement discovered approximately 6,500 pills contained in several different bags. The seized pills included: 2,317 Morphine pills; 2,247 Amphetamine pills; 684 Zolpidem pills; 482 Hydrocodone pills; 456 Methadone pills; 260 Alprazolam pills; and 89 Hydromorphone pills.

The pills were packaged in numerous Ziploc bags, indicative of pills that are being distributed. There were also numerous pills in wholesale pharmacy bottles that individuals are prohibited from possessing, indicative of pills for resale. Drug ledgers were also seized in Ward’s room, which referenced certain strengths of the narcotics, pills with certain markings, as well as the number of pills and prices.

At the time of the search, Ward was on parole for a state conviction of possession of cocaine with intent to sell.

A federal jury convicted Ward on August 17, 2016, of seven counts of unlawful possession with intent to distribute prescription pills – individual counts for Morphine, Amphetamine, Zolpidem, Hydrocodone, Methadone, Alprazolam, and Hydromorphone.

On June 8, 2017, the Honorable J. Daniel Breen sentenced Ward to more than 11 years in federal prison. On counts 1, 2, 4, 5, and 7, Ward was sentenced to 136 months to run concurrent with 120 months on counts 3 and 6. Ward received a total of 6 years supervised release to begin after his incarceration.

The case was investigated by the Jackson-Madison County Metro Narcotics Unit; Jackson Police Department Gang Enforcement Team; and the Drug Enforcement Administration. Assistant U.S. Attorney Beth C. Boswell prosecuted this case on the government’s behalf.

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Memphis, TN – Terry Farris was sentenced to 484 months in federal prison for armed robbery affecting interstate commerce. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, during the month of January 2016, Eugene Cox, 23, and Squantivia S. Patterson, 23, both of Memphis; and Terry Farris, 38, of Millington, participated in multiple armed robberies of seven Memphis businesses: Shoney’s, Family Dollar, Krystal’s, Circle K, Church’s, Subway and Beauty and Beyond.

The guilty verdict followed a jury trial before the Honorable Sheryl Lipman, U.S. District Judge. Evidence at trial showed Terry Farris, along with Eugene Cox and Squantivia Patterson, committed two robberies together.

On January 13, 2016, the trio robbed the Shoney’s at 308 Covington Pike. Later that evening, the men robbed Circle K at 6133 Macon. Cox and Patterson were captured on surveillance video inside the Circle K, while Farris remained outside of the business and served as the lookout. After the robbery of Circle K, the men parted ways.

On January 14, 2016, Farris robbed Family Dollar at 2711 Getwell and Krystal’s at 3675 Lamar. On January 16, 2016, he robbed Church’s at 925 Poplar. That same day, Cox and Patterson robbed Subway at 2938 Covington Pike. While committed on the same day, the robberies were unrelated. Cox and Patterson committed their last robbery on January 23, 2016, at the Beauty and Beyond beauty supply, 9024 Covington Pike.

As a result of the Memphis Police Department’s investigation, latent prints lifted from the crime scene at Family Dollar were determined to be the same inked impressions belonging to Farris. The investigation also yielded surveillance video from Family Dollar, Krystal’s and Church’s along with victims’ identification of Farris from photo line-ups.

The case was investigated by detectives from the Memphis Police Department’s Safe Streets Task Force. Assistant U.S. Attorneys Karen Hartridge and Kevin Whitmore prosecuted this case on the government’s behalf.

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Memphis, TN – Melvin Hutchieson, 29, was sentenced to 120 months in federal prison for being a felon in possession of a firearm. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, on July 16, 2015, two men were repairing an air conditioner when the defendant robbed them at gunpoint. He took approximately $400 in cash and a Ruger .40 caliber pistol. The Ruger was reported stolen. During an unrelated drug investigation, Bartlett Police Department Detectives received information that Hutchieson was selling drugs and that he drove a gold Chevy Suburban.

On September 29, 2015, Bartlett detectives executed a search warrant for the Suburban and the residence where they believed the defendant was selling drugs. When the detectives arrived at the address to execute the warrants, they saw the defendant leaving in the Suburban. The detectives attempted to stop the Suburban, but the defendant continued to drive.

The defendant eventually stopped the car and was taken into custody. The detectives searched the Suburban and recovered a loaded Ruger.

Memphis Police Department detectives conducted a photographic lineup and the defendant was identified as the person who robbed the victims at gunpoint in July. The detectives also confirmed that the Ruger recovered in the Suburban was the weapon the defendant stole from the victims.

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.

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Jackson, TN – Gangster Disciple Tarrice Martez McCarley, 32, has been sentenced to 110 months in federal prison for being a felon in possession of a firearm and possession of counterfeit Federal Reserve notes. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, on January 5, 2016, investigators with the Jackson Police Department Gang Enforcement Unit stopped a vehicle driven by Tarrice Martez McCarley. McCarley had an open warrant at the time of the stop. He got out of the car in a residential area of North Parkway in Jackson, TN with a fully loaded Llama .38 caliber revolver in his hand. The defendant dropped the firearm and fled on foot. An investigator deployed his Taser in an attempt to stop McCarley. McCarley was taken into custody shortly thereafter. McCarley was a several time convicted felon.

During an interview, McCarley admitted he had purchased the gun for $100 from someone on the street. At the time of his arrest, the defendant had 11 counterfeit one hundred dollar bills in his wallet. All the bills had the same serial number.

The case was investigated by the Jackson Police Department, Gang Enforcement Unit; Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Federal Bureau of Investigation. Assistant U.S. Attorney Beth Boswell prosecuted this case on the government’s behalf.

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Memphis, TN – Derrick Kennedy Crumpton, the Assistant Governor of the Gangster Disciples for the State of Tennessee, has pleaded guilty to both RICO and drug conspiracy charges. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.

According to the indictment, as the Assistant Governor of the Gangster Disciples, Crumpton directed other members and associates of the enterprise in carrying out criminal activity with other Gangster Disciples gang leaders, as well as participated directly in the criminal activities of the enterprise - including murder, kidnapping, assault, intimidation of witnesses and victims, narcotics distribution, and weapons trafficking.

"It is important that gang members are aware that if they engage in drug dealing and/or violent acts that they will receive a stiff prison sentence. Mr. Crumpton’s guilty plea demonstrates that joining a violent street gang is a dead-end decision that will end badly for its members," said Acting U.S. Attorney Laurenzi.

Crumpton is 1 of 16 Gangster Disciples in the Memphis and Jackson area indicted in May 2016 for conspiring to participate in a racketeering enterprise. On Tuesday, May 30, 2017, Crumpton pleaded guilty before U.S. District Judge John T. Fowlkes, Jr., to conspiracy to participate in a racketeering enterprise and conspiracy to distribute narcotics. Crumpton is the second of 16 indicted defendants to plead guilty. Daniel Cole pleaded guilty on December 21, 2016.

Crumpton is scheduled to be sentenced by the Honorable John T. Fowlkes, Jr., on Thursday, August 17, 2017, at 10:00 a.m. He faces up to life in federal prison and a fine of up to $10,000,000.

The case was investigated by the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Drug Enforcement Administration (DEA); Tennessee Bureau of Investigation (TBI); the Multi-Agency Gang Unit, Police Departments for Memphis, Bartlett, Germantown, and Jackson; Sheriff’s Offices for Tipton, Desoto, Madison, Fayette, and Shelby County; and the West Tennessee Drug Task Force.

Assistant U.S. Attorneys Jerry Kitchen, Beth Boswell, Michelle Kimbril-Parks, and Special Assistant United States Attorney Sam Stringfellow are prosecuting this case on the government’s behalf.

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Memphis, TN – The former manager of the Regions BankWhitehaven North Branch was sentenced to 15-months in federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.

Renwick Chavez Edwards, 46, pled guilty in February of this year to a charge that he embezzled $45,002.71 from Regions Bank in March 2014. According to information presented in court by the United States, at the time of Edwards’ guilty plea between October 2013 and March 2015, Edwards embezzled approximately $223,000 from accounts of Regions’ customers.

In addition to the 15-month sentence in federal prison, Edwards was ordered to pay restitution to Regions Bank in the amount of $226,332.02 and to serve a period of three years on supervision after his release from prison.

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

Memphis, TN – A federal grand jury returned a 39-count indictment against a former law firm office manager. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the indictment today.

 

 

The indictment alleges 38 counts of wire fraud, and one count of interstate transportation of monies stolen or taken by fraud. Misty West, 40, of Olive Branch, Mississippi, was employed as the office manager, bookkeeper and paralegal at the Fowler Law Firm, located on Dr. Martin Luther King, Jr., Avenue in Memphis. 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.

 

In some instances, West presented blank checks drawn against the firm’s Suntrust Bank account and asked Fowler to sign the checks telling him she needed to pay the firm’s bills. Fowler signed the checks in blank and West completed the payee information and the amounts. The indictment alleges that West routinely made some of the checks payable to herself and deposited them to her Suntrust account and used the funds to pay her personal bills and expenses. West fraudulently obtained approximately $308,000 in this manner.

 

The indictment alleges that West also fraudulently obtained a debit card associated with a Suntrust account styled “Charles Wesley Fowler, d/b/a, the Candy Factory.” The Candy Factory was the name of a group of office suites owned by Fowler and which were leased to other individuals and businesses. After obtaining the debit card, the indictment alleges that West used the card to make ATM withdrawals without Fowler’s knowledge. West fraudulently obtained approximately $90,000 in this manner.

 

According to the indictment, West used the internet to transfer funds from the law firm’s account to pay her personal cell phone bill without Fowler’s knowledge or authorization. West fraudulently obtained approximately $17,000 in this manner.

 

West faces a maximum penalty of 20 years’ imprisonment, $250,000 fine and 3 years supervised release on the 38 counts of wire fraud, and 10 years’ imprisonment, $250,000 fine and 3 years supervised release on the count charging interstate transportation of monies stolen or taken by fraud.

 

The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Carroll L. Andre III is prosecuting this case on the government’s behalf.

 

Memphis, TN – The former Chief Accounting Officer for a Memphis business conglomerate has pleaded guilty to mail fraud. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.

According to the criminal information filed by the United States Attorney’s Office, Jim Tyson Jenkins, 46, also known as Ty Jenkins, was the Chief Accounting Officer for Blake Enterprises, LLC, a local business conglomerate affiliated with several other businesses including Reliable Finance Company, Inc.

In connection to his guilty plea, Jenkins admitted that between 2011 through March 2017, he defrauded Blake Enterprises and Reliable Finance of approximately $1.1 million by authorizing loans against the cash values of life insurance policies. The policies were issued by Voya Financial and were owned by the Reliable Finance Company retirement plan. In addition to his duties as Chief Accounting Officer, Jenkins was the retirement plan administrator.

According to information presented in court, Jenkins contacted Voya and requested loans against the policies. Voya mailed loan proceeds checks to Reliable. Jenkins deposited the checks to Reliable Finance accounts at First Tennessee Bank or InSouth Bank. Jenkins, who was authorized to transact business on the accounts, thereafter stole the funds by writing checks payable to himself, depositing them to his personal account at Regions Bank and using the funds for his personal benefit.

Jenkins faces a maximum penalty of 20 years’ imprisonment, $250,000 fine and 3 years supervised release. The defendant is scheduled to be sentenced on July 28, 2017, by U.S. District Judge John T. Fowlkes, Jr.

The case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorney Carroll L. Andre III is prosecuting this case on the government’s behalf.