Western District of Tennessee

Jackson, TN – A Jackson man who fatally shot his wife has been sentenced federally for unlawful possession of multiple firearms. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, Michael Allen Smith Sr., 44, of Jackson, Tennessee, unlawfully possessed multiple firearms, including a Ruger .40 caliber pistol, which he used to fatally shoot his wife.

On August 9, 2013, Jackson Police Department (JPD) officers were dispatched on a shots-fired call in the Hollyridge Cove area of Jackson. Officers arrived on the scene and made contact with two children. One of the children reportedly advised that their father, Smith, had killed their mother, Christy Smith. Upon entering the residence, officers discovered the body of Christy Smith lying unresponsive in the hallway with a large pool of blood coming from her head. The Assistant County Coroner arrived on the scene and pronounced the victim dead. A single gunshot wound to the face in her nose was determined to be the cause of death. The victim also had wounds to the forehead consistent with blunt force trauma.

Subsequent to the murder, JPD investigators spoke with one of the Smiths’ children, who advised that their parents had been arguing for the past couple of days. The child said they overheard Smith threaten their mother earlier that day, stating that Christy Smith was not going to leave him. The defendant eventually left the residence to go pick up his other child. Once Smith returned, he attempted to get Christy Smith to leave with him, but she refused. Smith then instructed the children to leave the residence and deliver peaches to their neighbors. Shortly after leaving, one of the children received a phone call from a relative instructing them to check on their mother. When they

returned, Smith was no longer there, but their mother, Christy Smith, was lying on the floor unresponsive and in a pool of blood.

Law enforcement was able to apprehend Smith in the early morning hours of August 10, 2013. A search warrant was executed on the Smiths’ residence, which yielded multiple firearms that belonged to the defendant.

In August 2015, Smith pled guilty to multiple counts of felony firearm possession.

On Monday, March 14, 2016, Smith was sentenced by Chief U.S. District Judge J. Daniel Breen to 120 months, the statutory maximum allowed under federal law, for unlawfully possessing multiple firearms.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Jackson Police Department.

Assistant U.S. Attorney Matthew Wilson prosecuted this case on the government’s behalf.

Memphis, TN – An Olive Branch, Mississippi man has been sentenced to nine years for executing two separate fraud schemes that defrauded victims of more than $2 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, between December 2012 and October 2014, Anthony Davis, 44, of Olive Branch, Mississippi, owned ADLM Automotive, Inc., a Mississippi-based wholesale automobile dealership that conducted business in Memphis. He used the company to promote a purported investment opportunity that ultimately defrauded investors of nearly $1.8 million.

During the aforementioned time period, Davis fraudulently told victims that they could purchase a Retail Installment Contract and Security Agreement (RICSA) from him through ADLM Automotive. He also told them that when he sold a vehicle to a customer and the customer financed any part of the purchase price, the customer would sign a RICSA, and an application for a title with the appropriate state (e.g., Tennessee, Arkansas, or Mississippi) agency responsible for issuing vehicle titles. Davis represented to the victims that they would have a perfected security interest in the vehicle which was the subject of the RICSA because their security interest would be noted on the Certificates of Title.

Davis told victims that monthly payments on the RICSAs would be collected by a Georgia-based company known as Vehicle Acceptance Corporation (VAC), and that each customer had signed an Automated Clearing House (ACH) payment form so that monthly payments would be automatically deducted from their bank account. Davis further represented that ADLM Automotive maintained an account with VAC and would direct VAC to route customers’ payments to the victims’ bank accounts. More so, Davis told the victims that if a customer defaulted and failed to make payments under the terms of the RICSA, ADLM Automotive would repurchase the non-performing loan, or give the victim the option of replacing the non-performing loan with a performing loan of equal or greater value.

Due to his fraudulent representations, Davis received investments from multiple victims. All along, Davis knew the RICSAs, customers, vehicles and titles did not exist.

In addition, and according to the charging document, Davis executed a separate fraud scheme between January 2014 and August 2014. This scheme involved Davis searching for and obtaining Social Security Numbers to create fraudulent credit profiles. The credit profiles and other false and fraudulent identifying information were used to obtain credit to finance the purchase of vehicles. As a result of the scheme, Davis and co-conspirators fraudulently obtained and attempted to obtain credit to finance the purchase of approximately 16 vehicles. The losses associated with this scheme were more than $457,000.

In December 2015, Davis pled guilty to two counts of wire fraud before U.S. District Judge John T. Fowlkes Jr.

On Friday, March 4, 2016, Judge Fowlkes sentenced Davis to nine years in prison.

The amount of restitution Davis will pay to victims will be determined on Wednesday, March 9, 2016. In the agreement filed at the time of his plea, Davis agreed to pay restitution in the total amount of $1,763,829.50 to those victimized in the first scheme; and a total amount of $457,507.06 to those victimized in the second scheme.

The case was investigated by the U.S. Postal Inspection Service, U.S. Marshal’s Service, and the Social Security Administration – Office of Inspector General.

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

Jackson, TN – A Decatur County woman has been sentenced to federal prison for maintaining a mail fraud scheme that defrauded a company of more than $770,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, 50-year-old Vickie McBride, of Decatur County, Tennessee, was an office manager of Buck Building Supply, Inc. The business had locations in two Tennessee counties – Decatur and Henderson.

In 2007, McBride devised a scheme to steal funds from Buck Building Supply by accepting cash payments made on customers’ accounts, showing the payments as store credits in the company’s computer accounting software. The United States Postal Service was used to accept customers’ payments. McBride used the money for personal expenses.

McBride continued her scheme until 2014, when the business’ owners discovered the fraud. Over a seven-year-plus period, McBride stole more than $770,000 from the company.

In October 2015, McBride pled guilty to one count of mail fraud before Chief U.S. District Judge J. Daniel Breen.

On Tuesday, March 1, 2016, Judge Breen sentenced McBride to 27 months incarceration. She was also ordered to pay $770,829.22 in restitution.

This case was investigated by the Tennessee Bureau of Investigation (TBI) and the United States Postal Inspectors Service.

Assistant U.S. Attorney Matthew Wilson prosecuted this case on the government’s behalf.

Memphis, TN – A woman has been sentenced to 72 months for submitting fraudulent federal income tax returns that defrauded the government of more than $700,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, and Tracey D. Montaño, Special Agent in Charge of IRS-Criminal Investigation, announced the sentence today.

According to information presented in court, Bridget Pollard, 45, of Memphis, owned and operated Freedom Tax Service, a local tax preparation business. For the 2008 tax year, Pollard utilized an electronic filing identification number (EFIN) to electronically process and file tax returns. Pollard submitted 97 returns to the Internal Revenue Service (IRS) that falsely and fraudulently claimed credits for first-time homebuyers (FTHBC) and business owners (Schedule C).

Pollard reportedly told clients that all they had to do to qualify for FTHBC was have the intention to purchase a home. Many clients were unaware that Pollard was actually filing a tax return on their behalf; they thought they were simply applying for a home loan. Furthermore, Pollard filed false Schedule C tax forms for clients who were in fact unemployed.

The total amount of fraudulent claims made by Pollard was in excess of $700,000.

In December 2015, Pollard was convicted by a federal jury on 12 counts of submitting fraudulent federal income tax returns.

On Wednesday, March 2, 2016, Chief U.S. District Judge Jon P. McCalla sentenced Pollard to six years in federal prison.

This case was investigated by IRS-Criminal Investigation.

Assistant U.S. Attorneys David Pritchard and Damon K. Griffin prosecuted the case on the government’s behalf.

Memphis, TN – A Memphis man who robbed two businesses at gunpoint and forced a store clerk to perform a sex act has been sentenced to 477 months (over 39 years) in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.

According to evidence presented in court, in the early morning hours of January 26, 2014, 20-year-old Khalil Davis, a member of the Bloods street gang, entered a Circle K convenience store on Poplar Avenue, masked in a bandana and armed with a firearm. Davis pointed the gun at the store clerk’s face and took money from both the cash register and safe. He then placed the gun to the female clerk’s head and forced her to perform oral sex on him before fleeing the scene.

On the same day, less than an hour later, Davis, along with a co-conspirator, 33-year-old Antonio Griffin, entered the Marathon Gas Station on Poplar Avenue. After Griffin approached the counter to make a purchase, Davis ran behind the counter and put a gun to the store clerk’s head. A struggle ensued between Davis and the clerk while Griffin grabbed money out of the cash register and fled the store. Davis was able to eventually release himself with the gun. As he exited the store, Davis fired one shot at the clerk.

In July 2015, Davis’ co-conspirator, Griffin, pled guilty to one count of committing a robbery affecting interstate commerce and one count of brandishing and discharging a firearm in relation to a crime of violence. He was sentenced by U.S. District Judge Samuel H. Mays to a 10-year prison term in November 2015.

In November 2015, a jury convicted Davis on two counts of committing a robbery affecting interstate commerce and two counts of brandishing and discharging a firearm in relation to a crime of violence.

On Thursday, February 25, 2016, Judge Mays sentenced Davis to 477 months imprisonment.

The case was investigated by Safe Streets Task Force and the Memphis Police Department.

Assistant U.S. Attorneys Samuel Stringfellow and Kevin Whitmore prosecuted this case on the government’s behalf.

Memphis, TN – A former Selmer Police Department lieutenant has been indicted on multiple child pornography charges. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.

According to the indictment, between February and March 2015, Tony O. Miller, 36, of Finger, Tennessee, obtained images and videos of minors, some of whom were under 12 years old, engaged in sexually explicit conduct.

An undercover Federal Bureau of Investigation (FBI) investigation identified users of a website set up for the purposes of sharing child pornography. Visitors to the website could view, download, and comment on other users' material, as well as upload their own. Miller was identified as one of the website’s users. At the time of the alleged conduct, he was a lieutenant with the Selmer Police Department.

On Wednesday, February 24, 2016, Miller was indicted on one count of receipt of child pornography and two counts of access with intent to view child pornography.

If convicted, Miller faces a minimum sentence of five years and a maximum of 20 years on the receipt of child pornography charge. He faces a maximum sentence of 20 years for each access with intent to view child pornography charge.

Miller faces individual fines of up to $250,000 on each count.

This case is being investigated by the FBI and Selmer Police Department.

Assistant U.S. Attorney Debra Ireland is prosecuting this case on the government’s behalf.

Anyone who has information on the exploitation of minors is asked to contact the Memphis Child Exploitation Task Force at 901.747.4300.

This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' 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 http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."

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

Memphis, TN – A former tax preparer has been indicted for filing materially false federal income tax returns which defrauded the government of nearly $130,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, and Tracey D. Montaño, Special Agent in Charge of IRS-Criminal Investigation, announced the indictment today.

According to the indictment, Latoya Garrett, 41, of Memphis, Tennessee, was employed as a tax preparer at the Bryan Tax Service, Global Taxes and Tax Bank. Garrett filed tax returns on behalf of the three aforementioned tax services for tax years 2010 and 2011.

An investigation conducted by the Internal Revenue Service – Criminal Investigation (IRS-CI) discovered that many of the returns filed by Garrett were materially false. Specifically, false Schedule C income and expenses, false education credits, and falsely claimed dependents were all claimed on the returns of 13 taxpayers — some of which had multiple returns — filed for tax years 2010 and 2011. The taxpayers denied providing the said information to Garrett; she was identified as the tax preparer that prepared and filed said returns with the IRS.

The total loss associated with Garrett’s illicit acts is $129,744.00.

On Wednesday, February 17, 2016, Garrett was indicted on 18 counts of aiding and assisting in filing false documents, claims or returns with IRS.

If convicted, she faces up to three years imprisonment on each count. She also faces a fine of up to $100,000 on each count.

This case is being investigated by the IRS-CI.

Assistant U.S. Attorney Damon K. Griffin is prosecuting this case on the government’s behalf.

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

Memphis, TN – A man has been indicted for allegedly using the stolen identities of personal acquaintances, car dealers and over 145 Memphis Neurology patients to defraud various financial institutions of more than $1.6 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.

According to the indictment, Jeremy Jones, 37, of Memphis, Tennessee, allegedly executed a scheme to steal the identities of personal acquaintances, car dealers and over 145 Memphis Neurology patients throughout 2011, 2012 and 2015. Jones reportedly used this identifying information to apply for loans and credit cards and open bank accounts in the individuals’ names without their knowledge. A co-conspirator, who was employed at Memphis Neurology, removed patient information from the company’s database and provided it to Jones upon his request. Jones agreed to compensate the co-conspirator for providing him with this information.

Jones allegedly sent and received applications, checks and other financial information to and from various lenders through mail carriers to other states. The potential loss to the financial institutions is $1,660,587.30.

On Tuesday, February 16, 2016, Jones was indicted on individual counts of conspiracy to commit identity theft, identity theft, mail fraud, and aggravated identity theft.

The maximum prison sentence for conspiracy is 5 years. The maximum sentence for identity theft is 5 years. The maximum sentence for mail fraud is 20 years. The maximum sentence for aggravated identity theft is a mandatory penalty of 2 years imprisonment consecutive to any other sentence imposed.

This case is being investigated by the U.S. Postal Inspection Service and U.S. Secret Service.

Assistant U.S. Attorney Damon K. Griffin is prosecuting this case on the government’s behalf.

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

Jackson, TN – A West Tennessee man has been sentenced to federal prison for unlawfully possessing an improvised destructive device. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentence today.

According to information presented in court, in May 2015, the Carroll County Sheriff’s Office received a complaint of a domestic disturbance at a residence in Trezevant, Tennessee. Deputies met with the complainant and homeowner, who advised that Milton Edward Strain III, 30, of Trezevant, Tennessee, was in possession of a grenade.

Deputies apprehended the defendant and recovered an improvised destructive device from the back of Strain’s vehicle, along with firearms and ammunition. Bomb technicians with the Jackson Police Department determined that the improvised destructive device contained high explosives. Further analysis by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) determined that the device was an explosive bomb.

On Monday, February 8, 2016, Chief U.S. District Judge J. Daniel Breen sentenced Strain to 18 months in prison.

The investigation was conducted by the ATF; Tennessee Bomb and Arson Unit; Jackson Police Department’s Bomb Squad; and the Carroll County Sheriff’s Office.

The case was prosecuted by the U.S. Attorney’s Office for West Tennessee’s Eastern Division in Jackson.

Memphis, TN – Two drug dealers associated with the 7th Street Murda Squad have pled guilty to conspiring to distribute several kilos of cocaine. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the pleas today.

According to the indictment and information presented in court, Joe Jones aka “Joe Cobbs” and “Joe Blow,” 37, and Tavious Swift aka “Tabo,” 36, both of Memphis, supplied and distributed cocaine in neighborhoods associated with the 7th Street Murda Squad.

The 7th Street Murda Squad is comprised of Gangster Disciples, Vice Lords, and other neighborhood gangs. The gang is known to have a reputation of violence, boasting members who have been convicted of violent offenses including aggravated assault, robbery, and murder. The criminal organization is primarily based in residential neighborhoods in the northern area of Memphis.
From at least 2012 to April 2015, both defendants conspired with each other, along with additional co-conspirators, to possess with the intent to distribute and did distribute more than five kilograms of cocaine in West Tennessee.

Over the aforementioned period, Jones reportedly purchased several quarter-kilograms of cocaine from a co-conspirator on a weekly basis. Jones would distribute the cocaine to multiple people, and maintained stash houses where large quantities of cocaine were stored and packaged for distribution.

Swift purchased multiple ounces of cocaine at a time from Jones. He also purchased several ounces from other co-conspirators. In addition to distributing cocaine, Swift maintained stash houses where large quantities of cocaine were stored and packaged for distribution.

From 2012 to April 2015, the Drug Enforcement Administration (DEA), with support from state, local and federal law enforcement partners, conducted a long-term investigation into the 7th Street Murda Squad.

In April 2015, 16 alleged members and associates of the gang were indicted on federal drug charges. Jones and Swift were among the individuals indicted.

On Monday, February 8, 2016, both Jones and Swift pled guilty to one count of conspiracy to possess with the intent to distribute and to distribute more than 5 kilograms of cocaine.

The defendants are scheduled to be sentenced by U.S. District Judge Sheryl H. Lipman on Thursday, May 19, 2016.

Both defendants face a minimum sentence of 10 years and a maximum sentence of life in federal prison. They also face individual fines of up to $10,000,000.

The cases were investigated by the Memphis DEA Task Force.

Assistant U.S. Attorney John Fabian is prosecuting these cases on the government’s behalf.

Memphis, TN – Two Memphis men have pled guilty to conspiring to distribute large quantities of heroin, cocaine, marijuana and oxycodone. One of the defendants has also pled to possessing multiple firearms. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the pleas today.

According to information presented in court, 45-year-old Freeman Monger and 40-year-old Jeffrey Ingram, both of Memphis, possessed with intent to distribute large quantities of heroin, cocaine, marijuana and oxycodone. Ingram also possessed multiple handguns and rifles.

In April 2013, Shelby County Sheriff’s Office deputies conducted a traffic stop on Ingram. A large quantity of cocaine was found in Ingram’s vehicle. Deputies later executed a search warrant at Ingram’s residence, as well as storage units he maintained. Eleven handguns and two rifles were recovered from the storage units.

Over two years later, in August 2015, deputies executed a search warrant on a residence owned by Monger. Upon entering the residence, law enforcement located Monger and Ingram in separate parts of the house. A search of the residence yielded hundreds of grams of heroin, cocaine, and marijuana, as well as 50 oxycodone pills. The residence was reportedly used to stash and distribute narcotics.

A search warrant was also conducted on Ingram’s residence in August 2015. Deputies recovered a Beretta 9mm pistol during the search.

On Friday, February 5, 2016, both Ingram and Monger pled guilty to multiple offenses.

Ingram pled guilty to two counts of possessing with the intent to distribute cocaine; individual counts of aiding and abetting a co-conspirator in possession with the intent to distribute multiple grams of heroin, cocaine, marijuana and oxycodone; felony possession of 13 firearms; felony possession of 12 firearms in furtherance of a drug trafficking crime; and felony possession of a Beretta 9mm pistol.

Monger pled guilty to aiding and abetting a co-conspirator in unlawful possession with the intent to distribute heroin, cocaine, marijuana and oxycodone.

Both defendants are scheduled to be sentenced by U.S. District Judge John T. Fowlkes Jr. on Thursday, May 6, 2016.

Ingram faces a maximum sentence of life.

Monger faces a maximum sentence of 40 years.

This case was investigated by the Shelby County Sheriff’s Office.

Assistant U.S. Attorney Lorraine Craig is prosecuting this case on the government’s behalf.

Memphis, TN – The alleged head governor of FAM Mob, a violent street gang based throughout North Memphis and Shelby County, has been sentenced to 120 months for felony firearm possession. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.

According to information presented in court, 28-year-old Jarvis Lewis, aka Jabo, of Memphis, unlawfully possessed a Jimenez Arms 9mm pistol.

On October 27, 2014, Memphis Police officers responded to shots fired at the Ridgecrest Apartments Complex. The complex is allegedly used as the headquarters of FAM Mob, a violent street gang prevalent in Frayser, Northhaven, Raleigh and Millington.

Upon arriving on the scene, officers learned that two men with guns — one of them being Lewis — entered a unit in the apartment complex, according to information presented in court. After locating the unit, officers asked for the defendants to leave the residence. The defendants refused to comply, and law enforcement entered the apartment. Lewis and his co-defendant were in the apartment’s master bedroom. A loaded 9mm pistol, partially sticking out of a bag of sugar, was also located by law enforcement while searching the apartment.

FAM Mob’s hierarchy allegedly consists of a head governor, governors, CEOs, big "homies" and little "homies." Lewis allegedly became the leader of FAM Mob after its former head governor, James McCracken, was indicted federally in November 2014 for violating the Hobbs Act. The Hobbs Act makes it a federal crime to commit a robbery that interferes with interstate commerce. In July 2011, McCracken and other FAM Mob members allegedly robbed a drug dealer who was trafficking narcotics manufactured outside of the district.

In November 2015, a federal jury convicted Lewis of one count of felony possession of a firearm.

On Friday, February 5, 2016, U.S. District Judge Sheryl H. Lipman sentenced Lewis to 120 months in federal prison.

This case was investigated by the Project Safe Neighborhoods (PSN) Task Force, a collective comprised of personnel from the Memphis Police Department; Shelby County Sheriff’s Office; and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The PSN Task Force works in a unified effort against gun crime, targeting repeat offenders who continually plague the greater Shelby County area.

Assistant U.S. Attorneys Kevin Whitmore and Elizabeth Rogers prosecuted this case on the government’s behalf.

Memphis, TN – Four former Shelby County Corrections Deputies have all been sentenced to federal prison for attempting to smuggle and distribute OxyContin inside a correctional facility. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentences today.

The defendants and their respective sentences include:

• Anthony Thomas: 1 month, 6 months home detention, 3 years supervised release
• Marcus Green: 12 months and 1 day, 2 years supervised release
• Torriano Vaughn: 12 months and 1 day, 3 years supervised release
• Brian Grammer: 12 months and 1 day, 2 years supervised release

According to information presented in court, all four defendants participated in a scheme to smuggle what they thought were OxyContin pills inside of the Shelby County Jail on multiple occasions between May and December 2014. After inmates informed law enforcement officers of the defendants’ illicit conduct, an undercover investigation was initiated. The investigation involved law enforcement agents posing as associates of cooperating inmates. These inmates would make arrangements with the jailers to have various amounts of OxyContin pills smuggled into jail in exchange for hundreds of dollars.

The undercover agents met with each jailer at various locations in the city. Three undercover transactions were conducted with each defendant. During these transactions, the agents provided the defendants with several hundred dollars and varying amounts of pills, which were presumed to be OxyContin. In actuality, the pills were "placebos," pills or substances that have no therapeutic effect. After each transaction, the defendants would smuggle the presumed OxyContin pills into the jail and provide them to cooperating inmates. All of the placebos provided to the jailers were ultimately recovered by law enforcement agents.

The investigation was conducted by the Tarnished Badge Task Force, which is comprised of the Federal Bureau of Investigation; Shelby County Sheriff’s Department; and Memphis Police Department.

Assistant U.S. Attorneys John Fabian, Mark Erskine, and David Pritchard represented the government in the cases.

Memphis, TN – A former corrections officer for a federal correctional institution in Arkansas has pled guilty to attempting to smuggle contraband into the facility. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the plea today.

In September 2015, John Brooks, 28, of Jonesboro, Arkansas, was employed as a corrections officer at Federal Correctional Complex (FCC) Forrest City, Arkansas when he accepted money in exchange for agreeing to smuggle marijuana into the facility and to inmates.

On Thursday, February 4, 2016, Brooks pled guilty to one count of accepting money in exchange for agreeing to smuggle marijuana into the institution, in violation of his official duties.

Brooks is scheduled to be sentenced by U.S. District Judge Sheryl H. Lipman on Thursday, May 5, 2016. He faces up to 15 years imprisonment when sentenced. Brooks also faces a fine of up to $250,000.

This case is being investigated by the Federal Bureau of Investigation (FBI).

Assistant U.S. Attorney David Pritchard is prosecuting this case on the government’s behalf.

Memphis, TN – A defendant allegedly involved in the murder of 7-year-old Kirsten Williams has pled guilty in federal court to a separate charge of unlawfully possessing a firearm. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.

According to information presented in court, Jordan Clayton, 22, of Memphis, unlawfully possessed a Glock .40 caliber pistol.

On April 14, 2015, officers with the Multi-Agency Gang Unit went to a tattoo parlor on North Highland to arrest Clayton on other charges. When officers entered the business, they saw the defendant drop a handgun in a filing cabinet. During a search of the tattoo parlor, officers recovered the Glock .40 caliber pistol from the filing cabinet where Clayton was seen dropping it.

On Friday, February 5, 2016, Clayton pled guilty to one count of felony firearm possession.

Clayton is scheduled to be sentenced by U.S. District Judge John T. Fowlkes Jr. on Thursday, May 5, 2016. He faces up to 10 years imprisonment and a fine of up to $250,000.

This case was investigated by the Project Safe Neighborhoods (PSN) Task Force, a collective comprised of personnel from the Memphis Police Department; Shelby County Sheriff’s Office; and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The PSN Task Force works in a unified effort against gun crime, targeting repeat offenders who continually plague the greater Shelby County area.

Assistant U.S. Attorneys Marques Young and Stephen Hall are prosecuting this case on the government’s behalf.

Jackson, TN – Fourteen members of a drug ring responsible for manufacturing and distributing hundreds of thousands of dollars’ worth of synthetic cannibinoids and synthetic cathinones have been collectively sentenced to more than 290 months in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencings today.

The defendants and their respective sentences include:

• Saed Abdeljawwad: 24 months, 2 years supervised release
• Mohammed Sadek: 12 months, 2 years supervised release
• Ali Safa: 6 months, 6 months home detention, 2 years supervised release
• Mohammed Khalil: 60 months, 3 years supervised release
• Ehab "Mark" Rezk: 30 months, 3 years supervised release
• Hussein Salloukh: 48 months, 3 years supervised release
• Nazem Salloukh: 36 months, 3 years supervised release
• Ahmed "Eddie" Elsebae: 48 months, 3 years supervised release
• Akram Nagi: 6 months, 2 years supervised release
• Paula Neil Kirk: 2 years probation, 6 months home detention
• Irene Rosas-Montalvo: Time served, 12 months supervised release
• Deok Hee "Simon" Han: 27 months, 3 years supervised release
• Hani Tarhini: 2 years probation, 6 months home detention
• See Wan "Steven" Kang: 2 years probation, 6 months home detention
• Hassan "Sam" Safa: Fugitive
• Mahmoud "Steve" Safa: Fugitive

According to information presented in court, between 2011 and 2013, all of the defendants conspired to distribute large quantities of Schedule I and Analogue synthetic cannibinoids (marijuana simulates, aka "spice" or "K2") and synthetic cathinones (cocaine/methamphetamine simulates, aka "bath salts") throughout West Tennessee and other areas of the country.

Synthetic marijuana is made by mixing a raw Schedule 1 drug and analogue powder chemicals with surfactants, acetone, and glue, and spraying damiana, a dried vegetable matter, for a product which can be smoked. To manufacture bath salts, Schedule 1 drugs and Analogues are mixed and cut with adulterants, and packaged for snorting or ingesting.

Defendants involved with the drug ring either manufactured, distributed, or obtained units of drugs and/or wired currency and deposited proceeds into bank accounts to further the conspiracy. Some of the defendants worked as owners, managers, and retail clerks at Jackson area gas stations and convenience stores.

In February 2011, multiple packages containing synthetic cannibinoids and cathinones were intercepted by officers with the Jackson Metro Narcotics Unit. Testing revealed the substances were both Schedule I and Analogues of Schedule I substances. Subsequently, law enforcement discovered the same types of drugs were being sold at area gas stations and convenience stores. In November 2011, officers served a series of search warrants on local gas stations and convenience stores, many of which were owned by the defendants. Synthetic cannibinoids and cathinones were seized, as well as tens of thousands of dollars in currency. Amongst the substances being sold at the establishments were AM2201; JWH-018; JWH-081; Methylone; MDPV; UR-144; XLR11; 5-MeO-DALT; and 5-Fluoro-PB22.

In February 2012, law enforcement seized more synthetic cannibinoids and synthetic cathinones at gas stations and convenience stores in another round of search warrants. Law enforcement’s investigation discovered hundreds of thousands of these drugs were being ordered and sold by Hassan Safa and Ahmad Elsebae. The synthetic drugs were being shipped throughout the Western District of Tennessee and other states.

In summer 2012, packages were intercepted from the United States Postal Service and FedEx, all containing Schedule I drugs and Analogues. It was determined that Hassan Safa obtained the raw chemicals from China. The chemicals were reportedly being cooked or manufactured at office buildings Hassan Safa owned in Jackson. He supplied various stores with the drugs to sell.

The investigation revealed that each defendant was involved in the conspiracy with Safa. In 2013 and 2014, all of the above defendants were indicted for their roles in the conspiracy to distribute synthetic cannabinoids and synthetic cathinones, among other charges.

Over $1.4 million in assets have been forfeited as a result of the investigation, including residences, local convenience stores, a grocery store, and more than $150,000 in bank deposits. The forfeitures come from both Operation Desert Spice and a separate civil forfeiture case against assets owned by fugitive defendants Hassan Safa and Mahmoud Safa.

The investigation was conducted by the Tennessee Bureau of Investigation; Drug Enforcement Administration; Internal Revenue Service; Jackson-Metro Narcotics Unit; Jackson Police Department; Madison County Sheriff’s Office; and the Tennessee Highway Patrol.

Assistant U.S. Attorneys Matt Wilson and Chris Cotten prosecuted these cases on the government’s behalf.

Memphis, TN – A United States Postal Service employee has been indicted for assaulting a colleague while at work. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.

According to the indictment, on January 23, 2016, Richard Martin, 59, of Memphis, knowingly and forcibly assaulted a U.S. Postal Service employee. The assault reportedly occurred while the defendant and the victim were at work.

On Tuesday, January 26, 2016, Martin was indicted on one count of assault on a federal officer or employee. If convicted, he faces up to 20 years imprisonment and a fine of up to $250,000.

This case is being investigated by the U.S. Postal Inspection Service.

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

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

Memphis, TN – Two men have been sentenced to prison for conspiring to execute a scheme that defrauded the Memphis VA Medical Center of $1 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencings today.

According to the indictment, from August 2007 to July 2013, Andre Reddix, 60, and Ronnie White, 61, both of Memphis, conspired to embezzle more than $1 million from the VA. The medical center provides health care services to veterans in western Tennessee, northern Mississippi, and northeastern Arkansas.

Reddix was an employee at the VA during the scheme’s duration, according to information presented in court. His duties included using a company-issued credit card to buy medical supplies for the VA.

In August 2007, Reddix concocted a scheme with White, which involved White establishing a medical supply company entitled White Pharmaceuticals. Following the company’s formation, Reddix got White Pharmaceuticals approved to serve as a vendor that provided medical supplies to the VA.

For nearly six years, Reddix created fraudulent purchase orders to White Pharmaceuticals for medical supplies that were never delivered to the VA. Subsequently, White prepared and sent the VA fraudulent invoices that corresponded with each of the fraudulent purchase orders.

Reddix used the company-issued credit card to fraudulently pay White Pharmaceuticals for the undelivered medical supplies. The defendants then divided the payments among themselves, using the funds for personal expenses.

Ultimately, more than 300 fraudulent transactions were made by the defendants. The VA was defrauded of more than $1 million during the scheme.

In September 2015, Reddix and White both pled guilty to conspiracy to defraud the VA of approximately $1 million.

On December 11, 2015, White was sentenced by U.S. District Judge Samuel H. Mays Jr. to serve 30 months imprisonment. He was also ordered to pay $1,137,694.14 in restitution.

On January 21, 2016, Reddix was sentenced by Judge Mays to serve 30 months. Reddix was also ordered to pay $1,137,694.14 in restitution.

This case was investigated by the U.S. Department of Veterans Affairs, Office of Inspector General.

This case was prosecuted by the U.S. Attorney’s Office.

Settlement Provides Compensation to Victims Identified by the Department of Justice and Establishes Fair Procedures for Treating Borrowers Who Receive Disability Income

The Justice Department announced today that Evolve Bank & Trust has agreed to maintain revised policies, conduct employee training and compensate victims to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of disability and receipt of public assistance in violation of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA).  The FHA prohibits lenders from discriminating on the basis of disability, and the ECOA prohibits lenders from discriminating on the basis of receipt of public assistance.

The settlement, which is subject to court approval, was filed today in federal court in Memphis, Tennessee, where Evolve is headquartered.  The terms of the settlement require Evolve to establish a settlement fund of $86,000 to compensate eligible mortgage loan applicants who were asked to provide a letter from their doctor to document their disability income.  Under the settlement, Evolve will conduct training of its underwriters and loan officers and will monitor loan applications to insure that applicants with disabilities are not asked for a letter from a doctor. 

“Loan applicants who rely on disability income should not be treated differently than other applicants,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “This settlement will provide relief to victims of a discriminatory practice that illegally and unnecessarily burdens individuals with disabilities in violation the Fair Housing Act and the Equal Credit Opportunity Act.”

The lawsuit originated with a referral from the Board of Governors of the Federal Reserve System to the Civil Rights Division.  Evolve is a member of the Federal Reserve System.

“Illegal discrimination on the basis of disability is unacceptable,” said Federal Reserve Governor Lael Brainard.  “This settlement not only provides restitution for mortgage applicants that were harmed by the bank’s discriminatory practices, but ensures that the bank institutes new, fair policies and trains its staff to implement them.”

“Every individual is entitled to equal and fair treatment when applying for a loan,” said U.S. Attorney Edward L. Stanton III of the Western District of Tennessee.  “This settlement underscores the Department of Justice’s unwavering commitment to holding financial institutions accountable when they engage in unlawful discriminatory practices.”

The Civil Rights Division, the Board of Governors of the Federal Reserve System and the U.S. Attorney’s Office of the Western District of Tennessee are members of the Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.  For more information about the task force, please visit www.StopFraud.gov.

The department’s enforcement of fair lending laws is conducted by the Housing and Civil Enforcement Section’s Fair Lending Unit in the Civil Rights Division.  Since the Fair Lending Unit was established in February 2010, it has filed or resolved 44 lending matters under the Fair Housing Act, ECOA and the Servicemembers Civil Relief Act.  The settlements in these matters provide for a total of over $1.4 billion in monetary relief for impacted communities.  The Attorney General’s annual reports to Congress on ECOA enforcement highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications.

A copy of the complaint, as well as additional information about fair lending enforcement by the Justice Department, can be obtained from the Justice Department’s website at www.justice.gov/fairhousing.

Evolve Bank & Trust Complaint

Evolve Bank & Trust Consent Order

Memphis, TN – A former Memphis pastor has been sentenced to 85 months for knowingly receiving sexual images of a minor. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.

According to information presented in court, between March and April 2015, Demarcus Smith, 32, asked a teenage boy to send him sexually explicit images of himself via the Facebook Messenger app. Smith, a former pastor and minister, also had sexually explicit conversations with the victim through Facebook Messenger.

In August 2015, Smith was indicted on charges in relation to child pornography. He pled guilty to one count of receipt of child pornography in October 2015.

On Friday, January 15, 2016, Smith was sentenced by U.S. District Judge Sheryl H. Lipman to 85 months imprisonment.

The case was investigated by the Memphis Child Exploitation Task Force. The collective is comprised of the Federal Bureau of Investigation; Homeland Security Investigations; Shelby County Sheriff's Department; Memphis Police Department; U.S. Postal Investigation Service; U.S. Marshals Service; and the United States Secret Service.

Assistant U.S. Attorney Debra Ireland prosecuted this case on the government’s behalf.

Anyone who has information on the exploitation of minors is asked to contact the Memphis Child Exploitation Task Force at 901.747.4300.

This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' 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 http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."

Memphis, TN – After a three-day trial, a man who pointed an assault rifle at police officers has been convicted by a federal jury of felony firearm possession. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty verdict today.

According to information presented in court, on September 4th, 2014, detectives with the Memphis Police Department’s Organized Crime Unit went to a house in South Memphis to conduct a knock and talk investigation regarding drug sales. When detectives knocked on the door and asked to speak with a resident about the complaint, 31-year-old Geremy Atkins, of Memphis, asked who was at the door. After detectives identified themselves, Atkins opened the door and pointed a black 5.56 caliber assault rifle at one of the detectives. The defendant subsequently closed the door and ran out the back door. Detectives were able to catch and detain Atkins by the rear fence of the house’s backyard. The assault rifle Atkins pointed at officers was found on the other side of the fence, a few feet from where Atkins was arrested. Law enforcement discovered that the rifle was fully loaded with 5.56 caliber rounds of ammunition.

On Wednesday, January 13, 2016, a federal jury found Atkins guilty of one count of being a felon in possession of a firearm.

Atkins is scheduled to be sentenced by U.S. District Judge John T. Fowlkes Jr. on Thursday, April 21, 2016. He faces up to 10 years imprisonment and a fine of up to $250,000 when sentenced.

This case was investigated by the Project Safe Neighborhoods (PSN) Task Force, a collective comprised of personnel from the Memphis Police Department, Shelby County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The PSN Task Force works in a unified effort against gun crime, targeting repeat offenders who continually plague the greater Shelby County area.

Special Assistant U.S. Attorney Hamilton Carriker and Assistant U.S. Attorney Elizabeth Rogers prosecuted this case on the government’s behalf.

Memphis, TN – A doctor and his Cordova-based medical practice will pay $450,000 to the government to resolve allegations that it billed Medicare for unnecessary dermatological surgical procedures and office visits. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the settlement today.

Under federal law, Medicare reimburses medical providers only for procedures that are medically necessary. The United States contends that from 2008 to 2011, Dr. George R. Woodbury and his medical practice, Rheumatology & Dermatology Associates, P.C., billed Medicare for multiple medically unnecessary procedures. Specifically, the complaint alleged that Woodbury billed for tissue rearrangement surgeries; excisions which were larger than actually performed; benign excisions as malignant; overstated repair or closure sizes; and for unnecessary office visits.

In October 2014, the allegations resolved in this settlement were first raised in a lawsuit filed against the defendant under provisions of the False Claims Act. The law provides the United States with a cause of action against any person who knowingly presents or causes to be presented a false or fraudulent claim for payment or approval. Damages for liability under the False Claims Act are up to triple the amount of actual damages suffered by the United States, plus a mandatory civil penalty of $5,500 to $11,000 for each claim.

"Billing Medicare for dermatological surgical procedures that are not necessary or appropriate contributes to the soaring costs of health care and harms patients," said U.S. Attorney Stanton. "Settlements like this protect public funds and safeguard the beneficiaries of federal health care programs."

The investigation was conducted by the United States Department of Health and Human Services – Office of the Inspector General, along with the Federal Bureau of Investigation.

Assistant U.S. Attorneys Stuart J. Canale and David Brackstone represented the United States in this matter.

The claims settled by this agreement are allegations only, and there has been no determination of liability.

Memphis, TN – A Memphis man has been sentenced to 120 months for robbing a First Tennessee Bank and Family Dollar Store. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.

According to court information, on March 30, 2014, Marchello Moore, 34, entered the Family Dollar on Knight Arnold Road and posed as a customer. Moore approached the counter and acted as if he was going to purchase an item. When the clerk opened the cash register, Moore pulled out a handgun. The clerk managed to run to the back of the store and press the panic button. Moore was able to take approximately $50 from the cash register. He subsequently fled the scene in a gold Dodge Durango.

On April 7, 2014, Moore robbed a First Tennessee Bank on Kirby Center Cove. According to the bank teller, Moore reportedly approached a bank teller’s station and presented a note that read, "I have a gun/Give me all your money/No dye pack." The bank teller complied with the demand and provided Moore with approximately $1,995 from the cash drawer. Moore then fled the scene in the same gold Dodge Durango.

On April 10, 2014, Memphis Police Department (MPD) officers conducted a traffic stop on the gold Dodge Durango operated by Moore and placed him in custody for the Family Dollar robbery. Subsequent to his arrest, an inventory of the vehicle resulted in the discovery of a Cobra .380-caliber pistol in an air filter underneath the hood. During his post-arrest statement, Moore admitted that he also robbed the First Tennessee Bank.

In September 2015, Moore pled guilty to one count of bank robbery, one count of committing a robbery that affected interstate commerce, and one count of using, carrying, and brandishing a firearm during and in relation to a crime of violence.

On Friday, January 8, 2016, U.S. District Judge Sheryl H. Lipman sentenced Moore to 120 months in federal prison.

This investigation was conducted by the Federal Bureau of Investigation’s (FBI) Safe Streets Task Force, a collective comprised of federal, state and local law enforcement personnel. The MPD investigated this case on behalf of the Safe Streets Task Force. Special Assistant U.S. Attorney Dean DeCandia prosecuted this case on the government’s behalf.

Memphis, TN – A man responsible for fatally shooting an off-duty Memphis Police officer has pled guilty to felony possession of a firearm. The defendant’s wife has also pled guilty to disposing of a firearm to a felon. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty pleas today.

According to the indictment, Lorenzo Clark, 36, of Memphis, unlawfully possessed a Glock 9mm pistol on Sunday, October 11, 2015. The firearm was reportedly used by the defendant in the fatal shooting of 31-year-old Terence Olridge, an officer with the Memphis Police Department (MPD). Olridge was off duty at the time of the shooting.

According to the federal complaint, MPD officers responded to a shooting call at Lorenzo Clark’s Cordova residence. Officers later recovered the Glock 9mm alleged to be used in the shooting from the defendant. Lorenzo Clark admitted to possessing the Glock 9mm prior to and during the shooting with Olridge.

In October 2015, Lorenzo Clark was charged with felony firearm possession.

On Wednesday, January 6, 2016, Lorenzo Clark pled guilty to one count of felony firearm possession. He is scheduled to be sentenced by Judge Sheryl H. Lipman on April 15, 2016. He faces up to 10 years imprisonment and a fine of up to $250,000 when sentenced.

Lorenzo Clark’s wife, Natalie Clark, 37, of Memphis, was also charged in the October indictment for providing a firearm to Lorenzo Clark despite knowing he had been convicted of a felony.

On Wednesday, January 6, 2015, Natalie Clark pled guilty to one count of disposing of a firearm to a felon. She is scheduled to be sentenced by Judge Lipman on April 15, 2016. She faces up to 10 years imprisonment and a fine of up to $250,000 when sentenced.

The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), along with the MPD.

Assistant U.S. Attorney Marques Young is prosecuting this case on the government’s behalf.

Memphis, TN – An in-home caretaker has been sentenced to 27 months for executing a scheme that defrauded a deceased woman’s estate of more than $80,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.

According to the indictment, Shirley Hardaway, 60, of Memphis, was the owner and operator of Companion Plus, an in-home health and respite care provider to sick, disabled, and elderly people. Hardaway served as the daily in-home caretaker of the deceased victim for approximately four-to-five years, according to information presented in court. The home services ceased when the victim died in September 2009 at the age of 91. The deceased victim left behind more than $80,000 in two investment accounts at Franklin Templeton Investments, an investment managing company headquartered in California.

Nearly two years after the victim’s death, in June 2011, Hardaway mailed fraudulent change of address requests to Franklin Templeton on the decedent’s investment accounts, changing the address used for future correspondence between the parties to Hardaway’s address.

Hardaway and a co-conspirator then opened a fraudulent bank account online in the decedent’s name at Bank of America. The victim’s name, social security account number, and address were used to open the account.

After the Bank of America account was activated, Hardaway and her co-conspirator mailed several fraudulent documents to Franklin Templeton in the decedent’s name requesting that the company liquidate the victim’s two investment accounts and transfer the money within them to the fraudulently opened bank account. Upon receiving the request to liquidate both of the deceased victim’s accounts, Franklin Templeton electronically transferred more than $80,000 to the bank account. Hardaway then transferred the money to her personal Bank of America savings account and withdrew it all via cashier’s check.

On Thursday, October 8th, 2015, Hardaway pled guilty to one count of bank fraud and one count of conspiracy to commit mail fraud.

On Wednesday, January 6, 2016, Judge Jon Phipps McCalla sentenced Hardaway to 27 months in federal prison. She has also been ordered to pay $124,630.54 in restitution. In addition to the approximate $80,000 Hardaway stole from the victim’s investment accounts, she stole more than $40,000 in social security checks and pension dividend checks.

The case was investigated by the United States Secret Service.

Assistant U.S. Attorney Leetra Harris prosecuted this case on the government’s behalf.

Jackson, TN – A South Carolina man who impersonated an FBI agent and unlawfully possessed a firearm at a hotel in West Tennessee has been indicted. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.

According to the indictment, on November 23, 2015, Steven Darnell Lancaster, 45, of Gaston, South Carolina, falsely claimed to be a Special Agent with the Federal Bureau of Investigation (FBI) while at a hotel in Jackson, Tennessee. Lancaster, a felon, allegedly had a Glock .40 caliber pistol and false FBI credentials in his possession during the time frame he committed the impersonation.

Lancaster has been charged with one count of impersonating a federal officer and one count of being a felon in possession of a firearm.

This case is being investigated by the FBI and Jackson Police Department.

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

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

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Memphis, TN – A 51-year-old Millington man who trafficked multiple underage teens for sex has been sentenced to serve a quarter-century in prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.

"Trafficking the bodies of minors for financial gain is reprehensible and will not be tolerated," said U.S. Attorney Stanton. "Michael Lilley found this out the hard way. His deplorable actions have earned him a quarter-century sentence in federal prison with no chance of parole."

According to information presented in court, from May to September 2013, Lilley had four minors engage in commercial sex acts out of his Millington home, backhouse, van, and other locations. The victims were 15-, 16-, and 17-year-old students, some of whom attended Millington-area high schools.

Lilley used text messages and explicit photos of the teens to market them to various males willing to pay for sex. In addition to trafficking the victims out of his residence and vehicle, Lilley transported the juveniles to local restaurants and homes where they would engage in commercial sex acts. Lilley collected the proceeds provided from patrons, splitting them with the victims.

According to court information, the teens were trafficked for as little as $60 per sexual endeavor. Text messages disclosing conversations between Lilley and clients regarding price ranges were displayed in court.

Physical evidence presented during Lilley’s trial in September 2015 included images of both used and unused condoms and condom wrappers throughout his home and vehicle. Trafficking victims testified, recollecting their experiences working for Lilley while underage teens.

On September 22, 2015, a jury found Lilley guilty of four counts of sex trafficking of a minor; one count of conspiracy to commit sex trafficking; three counts of sexually exploiting a minor; one count of attempting to sexually exploit a minor; three counts of distributing visual depictions of a minor engaged in sexually explicit conduct; and one count of possessing at least one digital storage device containing visual depictions of minors engaged in sexually explicit conduct.

On Thursday, December 17, 2015, Lilley was sentenced by U.S. District Judge John T. Fowlkes Jr. to 25 years imprisonment. He will also be required to serve 20 years of supervised release.

This case was investigated by the Federal Bureau of Investigation’s Child Exploitation Unit.

First Assistant U.S. Attorney Larry Laurenzi and Assistant U.S. Attorney Debra Ireland prosecuted this case on the government’s behalf.

Memphis, TN – A Memphis man has been sentenced to more than seven years in federal prison as a result of his conviction in two separate cases involving mortgage fraud and identity theft. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.

According to the indictment, Marcus Jerome Payne, 46, of Memphis, and a co-conspirator fraudulently obtained two mortgage loans totaling approximately $530,000 between December 2008 and March 2009. Payne and his co-conspirator were able to apply for and obtain the mortgage loans by unlawfully using the name, social security number and other personal identifying information of another person.

Payne and his co-conspirator fraudulently obtained a mortgage loan of more than $265,000 from Fifth Third Bank. They obtained another loan of more than $264,000 from CitiBank. The loans were secured to buy two residential properties located in the city’s Central Avenue area.

In July 2015, Payne pled guilty to one count of conspiracy to commit mail, wire and bank fraud for his role in the mortgage loan fraud scheme.

Payne’s co-conspirator, Booker Smith, 32, of Memphis, pled guilty to one count of bank fraud in October 2015. He’s scheduled to be sentenced by U.S. District Judge Samuel H. Mays on Friday, January 8, 2016. He faces up to 30 years and a fine of up to $1 million when sentenced. He will also be ordered to pay restitution in the total amount of $265,155.22.

Payne also pled to unrelated charges of wire fraud and identity theft which were outlined in a criminal information filed by the U.S. Attorney’s Office. The wire fraud charge alleged that Payne fraudulently obtained two other mortgage loans for residences in Shelby County. The loans totaled approximately $661,200 between January and March 2006.

The criminal information also alleged that Payne fraudulently used the name of another individual to obtain an Arkansas Driver’s License, a mortgage loan origination agreement, and credit between June 2010 and July 2015.

On Tuesday, December 15, 2015, Payne was sentenced by Judge Mays to serve 85 months. He was also ordered to pay restitution in the total amount of $265,289.40 and forfeit $521,000.

This case was investigated by the Federal Bureau of Investigation; Internal Revenue Service - Criminal Investigation Division; U.S. Postal Inspection Service; and the U.S. Department of Housing and Urban Development Office of Inspector General.

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

Memphis, TN – A State of Tennessee probation officer has been indicted on identity theft and wire fraud charges in relation to a tax fraud scheme that defrauded the government of more than $50,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.

As the indictment alleges, between 2011 and 2012, LaShear Poole, 41, of Memphis, operated Five Star Tax Professionals, a tax preparation business. Poole, also a probation officer, used the business’ Professional Tax Identification Number (PTIN) and Electronic Filing Identification Number (EFIN) to file federal income tax returns.

Poole executed her scheme by unlawfully obtaining and possessing personal identifying information of U.S. taxpayers, which she used to electronically file federal income tax returns in their names. According to the indictment, Poole fraudulently prepared the tax returns of at least 13 individuals, making material false and fraudulent misrepresentations concerning the taxpayers’ employer and business information, income, and eligibility for education credits. The fraudulent tax returns were filed with the U.S. Internal Revenue Service (IRS) by means of wire communication. As a result of the scheme, Poole obtained more than $50,000 in tax refunds.

On Tuesday, December 15, 2015, Poole was indicted on 13 counts of wire fraud. She faces up to 20 years imprisonment and a fine of up to $1 million for each count.

Poole was also indicted on 13 counts of aggravated identity theft. She faces a mandatory sentence of two years (which would be served consecutive to any other term of imprisonment) and a fine of up to $250,000 for each count.

This case is being investigated by IRS-Criminal Investigation.

Assistant U.S. Attorney Christopher E. Cotten is representing the government in this case.

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

Memphis, TN – A former corrections officer for a federal correctional institution in Arkansas has been indicted for attempting to smuggle contraband into the facility. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.

In September 2015, John Brooks, 28, of Jonesboro, Arkansas, was employed as a corrections officer at Federal Correctional Complex (FCC) Forrest City, Arkansas when he accepted money in exchange for agreeing to smuggle marijuana into the facility and to inmates.

On Tuesday, December 15, 2015, Brooks was indicted federally on one count of accepting money in exchange for agreeing to smuggle marijuana into the institution in violation of his official duties. Brooks faces up to 15 years imprisonment if convicted of the charge.

Brooks was also indicted on one count of attempting to provide marijuana to an inmate. He faces up to five years if convicted of the charge.

The defendant faces an individual fine of up to $250,000 for each count.

This case is being investigated by the Federal Bureau of Investigation (FBI).

Assistant U.S. Attorney David Pritchard is prosecuting this case on the government’s behalf.

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

Memphis, TN – A man who fatally shot Memphis Police Department (MPD) Officer Sean Bolton has been indicted federally on charges of armed carjacking and felony possession of ammunition. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.

According to multiple reports, on August 1, 2015, Tremaine Wilbourn, 30, of Memphis, was in the passenger seat of a car parked on a street in East Memphis when Bolton approached the vehicle. Bolton attempted to detain Wilbourn before the defendant pulled a 9mm pistol and shot Bolton several times. The defendant is charged with unlawfully possessing 10 rounds of 9mm ammunition in connection with this shooting.

According to the indictment, on the same day of the shooting, Wilbourn used a firearm to carjack a man of a 2002 Honda Accord.

On Tuesday, December 15, 2015, Wilbourn was indicted federally on one count of carjacking; one count of possessing a firearm during and in relation to the carjacking; and one count of felony possession of ammunition.

Wilbourn faces up to 15 years imprisonment if convicted of the first count. The defendant faces up to life if convicted of the second count. And Wilbourn faces up to 10 years if convicted of the third count.

The defendant faces an individual fine of up to $250,000 on each count.

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is investigating this case in conjunction with the MPD.

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

Memphis, TN – In light of multiple inquiries regarding the July shooting of teenager Darrius Stewart by a Memphis police officer, U.S. Attorney Edward L. Stanton III has announced that the Department of Justice (DOJ), in tandem with its Civil Rights Division, the U.S. Attorney’s Office, and the Federal Bureau of Investigation is conducting a comprehensive review of the matter.

In July, Stewart’s shooting was referred by local authorities to the Tennessee Bureau of Investigation (TBI). The TBI subsequently prepared a report for consideration by the Shelby County District Attorney General’s Office. In early November, a state grand jury declined to indict Memphis police officer Connor Schilling on charges related to the death of Stewart.

The DOJ has been conducting an independent, comprehensive, and careful review of the evidence collected related to the shooting of Stewart. A team of agents, along with experienced prosecutors from the U.S. Attorney’s Office and the DOJ’s Civil Rights Division in Washington, D.C., are conducting the review which encompasses all of the circumstances surrounding Stewart’s death.

At this time, the DOJ’s review is ongoing. The U.S. Attorney’s Office cannot disclose any information about the Department’s internal deliberations.

The U.S. Attorney’s Office and its federal, state and local partners take very seriously all allegations of civil rights violations by law enforcement officers. The Department will continue to devote the necessary resources to examine any such allegations and will aggressively prosecute criminal civil rights violations whenever there is sufficient evidence to do so.

Memphis, TN – A Memphis man who robbed a man at gunpoint and pointed his firearm at police officers has been convicted by a federal jury of felony firearm possession. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty verdict today.

According to information presented in court, Christopher Travis, 24, of Memphis, and an unknown accomplice robbed a man at gunpoint in the city’s Catalina Street area near Sherwood Middle School on September 10, 2014. Travis and his accomplice reportedly assaulted the victim and stripped him of his clothing. Memphis Police Department (MPD) personnel were notified of the robbery by an onlooker. After arriving on the scene, officers saw Travis with the victim’s clothes. Upon seeing the officers, Travis fled on foot and retrieved a handgun from his pocket; MPD officers chased after him. After unsuccessfully jumping a fence, the defendant turned around and pointed his firearm at officers. An MPD officer subsequently shot at the defendant but didn’t strike him. Travis then managed to run through an opening in the fence and evade the officers.

According to court information, police set up a perimeter and located the defendant hiding in an open crawl space under a house located on Vanuys Road. After several verbal requests from officers, the defendant surrendered to law enforcement. The firearm that was pointed at the officer was located by a K-9 officer and his dog in a backyard adjacent to the house where Travis was found.

On Tuesday, December 8, 2015, a jury convicted Travis on one count of felony possession of a firearm.

Travis faces up to 10 years in federal prison and a fine of up to $250,000 when sentenced.

Travis is scheduled to be sentenced by U.S. District Judge Sheryl H. Lipman on Friday, March 11, 2016.

The case was investigated by the MPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

This case was part of the Project Safe Neighborhoods (PSN) initiative, which encourages federal, state, and local agencies to cooperate in an unified effort against gun crime, targeting repeat offenders who continually plague their communities.

Assistant U.S. Attorneys Marques Young and Elizabeth Rogers prosecuted this case on the government’s behalf.

Memphis, TN – A Collierville man has pled guilty to executing two separate fraud schemes that defrauded victims of more than $2 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.

According to the charging document, between December 2012 and October 2014, Anthony Davis, 44, of Collierville, owned ADLM Automotive, Inc., a Mississippi-based wholesale automobile dealership that conducted business in Memphis. He used the company to promote a purported investment opportunity that ultimately defrauded investors of nearly $1.8 million.

During the aforementioned time period, Davis fraudulently told victims that they could purchase a Retail Installment Contract and Security Agreement (RICSA) from him through ADLM Automotive. He also told them that when he sold a vehicle to a customer and the customer financed any part of the purchase price, the customer would sign a RICSA, and an application for a title with the appropriate state (e.g., Tennessee, Arkansas, or Mississippi) agency responsible for issuing vehicle titles. Davis represented to the victims that they would have a perfected security interest in the vehicle which was the subject of the RICSA because their security interest would be noted on the Certificates of Title.

Davis told victims that monthly payments on the RICSAs would be collected by a Georgia-based company known as Vehicle Acceptance Corporation (VAC), and that each customer had signed an Automated Clearing House (ACH) payment form so that monthly payments would be automatically deducted from their bank account. Davis further represented that ADLM Automotive maintained an account with VAC and would direct VAC to route customers’ payments to the victims’ bank accounts. More so, Davis told the victims that if a customer defaulted and failed to make payments under the terms of the RICSA, ADLM Automotive would repurchase the non-performing loan, or give the victim the option of replacing the non-performing loan with a performing loan of equal or greater value.

Due to his fraudulent representations, Davis received investments from multiple victims. All along, Davis knew the RICSAs, customers, vehicles and titles did not exist.

According to the charging document, Davis executed a separate fraud scheme between January 2014 and August 2014. This scheme involved Davis searching for and obtaining Social Security Numbers to create fraudulent credit profiles. The credit profiles and other false and fraudulent identifying information were used to obtain credit to finance the purchase of vehicles. As a result of the scheme, Davis and co-conspirators fraudulently obtained and attempted to obtain credit to finance the purchase of approximately 16 vehicles. The losses associated with this scheme were more than $457,000.

On Tuesday, December 8, 2015, Davis pled guilty to two counts of wire fraud before U.S. District Judge John T. Fowlkes Jr.

For each count, Davis faces up to 20 years imprisonment and a fine of up to $250,000. Davis will also be ordered to pay restitution in the total amount of $1,763.829.50 to those victimized in the first scheme. He will be ordered to pay restitution in the total amount of $457,507.06 to those victimized in the second scheme.

Davis is scheduled to be sentenced by Judge Fowlkes on March 3rd, 2016.

The case was investigated by the U.S. Postal Inspection Service, U.S. Marshal’s Service, and the Social Security Administration – Office of Inspector General.

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

Jackson, TN – Two leaders of a lucrative methamphetamine distribution ring in West Tennessee have been collectively sentenced to more than 270 months in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencings today.

"The production, distribution and ingestion of methamphetamine remain an issue that is ravaging communities in West Tennessee and throughout the nation," said U.S. Attorney Edward L. Stanton III. "Sentences like these two serve as strong reminders that law enforcement is committed to ridding our district of this insidious drug."

Steven Isbell, Chief of Dyersburg Police Department, said of the case, "This is an example of what good teamwork can do. This case was initiated by our patrol level response. Officers referred the beginning information to the Dyersburg Police Department Street Crimes Unit, who in turn got DEA and TBI involved in the investigation. The end result is that 15 people have now been indicted federally, and these two sentences alone have gotten two major ice distributors off our streets."

Dyer County Sheriff Jeff Box stated, "I sincerely appreciate the U.S. Attorney’s Office working with all the agencies involved to insure these defendants received appropriate punishment for the crimes they committed. Our local officers worked with DEA and TBI on this investigation, which has lasted over 1 ½ years. Everybody's hard work resulted in numerous federal indictments and has helped us eliminate a high purity ice distribution ring in the Dyer County area."

According to information presented in court, Miracle Pounds, 37, and Robert Troy Anderson, 49, both of Dyersburg, TN, spearheaded an organization responsible for distributing large quantities of meth and crystal meth, also known as "ice." Meth with greater than 80 percent purity classifies as ice and has stricter punishment levels under the United States Sentencing Guidelines. From January 2014 to December 2014, the two defendants, along with several co-conspirators, unlawfully distributed various quantities of highly pure meth throughout West Tennessee.

In January 2014, Operation Ice Breaker was initiated by the Drug Enforcement Administration (DEA) in collaboration with the Tennessee Bureau of Investigation (TBI), Dyersburg Police Department, and Dyer County Sheriff’s Office. The operation targeted several major ice distributors in the Dyersburg area — Pounds and Anderson being two of the operation’s main targets. Several state search warrants were executed on co-conspirators' homes during the investigation. And numerous controlled purchases were conducted where ice was sold by conspirators involved in the drug trafficking organization.

According to court information, Pounds and Anderson sold ice to undercover operatives. They also had other individuals selling ice for them. The two defendants, as well as other co-conspirators, transported meth from Arkansas to West Tennessee on various occasions for unlawful distribution. The majority of the meth recovered during Operation Ice Breaker’s duration was greater than 95 percent pure, classifying it as ice.

Both Pounds and Anderson pled guilty to one count of conspiracy to distribute and possess with intent to distribute actual methamphetamine.

On November 24th, 2015, Chief Judge J. Daniel Breen sentenced Pounds to serve 121 months in prison.

On December 4th, 2015, Judge Breen sentenced Anderson to serve 151 months in prison.

This case was investigated by the DEA, TBI, Dyersburg Police Department, and Dyer County Sheriff’s Office.

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

Memphis, TN – Two cousins have been collectively sentenced to more than 300 months in federal prison for armed robbery of a Family Dollar Store in Cordova. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencings today.

According to information presented in court, on April 24, 2014, Cortez Strickland, 27, and his cousin, Corney Sanders, 28, both of Memphis, robbed a Family Dollar Store on North Germantown Parkway with a .45 caliber pistol. The defendants entered the store together; Strickland was armed with the handgun. Strickland reportedly pointed the gun at a store clerk, while Sanders made threats and demanded money from the safe and cash register. After placing money from the register in a bag, the two defendants fled the scene on foot.

Law enforcement officials were notified of the robbery and went to the scene. Witnesses told the officers that they recognized the defendants. Officers were able to determine the perpetrators’ identities and located them at a home near the Family Dollar. Officers also recovered proceeds from the robbery and the handgun used in the crime.

Both defendants pled guilty to one count of robbery affecting interstate commerce and one count of use of a firearm during a crime of violence.

On October 20, 2015, Sanders was sentenced by U.S. District Judge Sheryl H. Lipman to serve 105 months in federal prison.

On December 2, 2015, Judge Lipman sentenced Strickland to serve 212 months in federal prison.

This investigation was conducted by the Federal Bureau of Investigation’s (FBI) Safe Streets Task Force, a collective comprised of federal, state, and local law enforcement personnel. The Memphis Police Department investigated this case on behalf of the Safe Streets Task Force.

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

Memphis, TN – A 33-year-old Memphis woman has been sentenced to 42 months in federal prison for theft of government funds and aggravated identity theft. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.

According to the facts presented in the charging document and revealed during the sentencing, between January 26, 2012 and July 17, 2012, Felechia Williams participated in a scheme to obtain payment of fraudulent federal tax refunds from the Internal Revenue Service (IRS) by filing false claims using the identities of various individuals without lawful authority. The stolen funds were routed to bank accounts controlled by Williams and others. As a result of the scheme, Williams and her two co-conspirators, Sharonda Carroll, 39, and Priscilla Rayford, 47, both of Memphis, received more than $100,000 in false federal income tax refunds.

In August 2015, Williams pled guilty to theft of government funds and aggravated identity theft.

On Thursday, November 19, 2015, Williams was sentenced by U.S. District Judge Sheryl H. Lipman to 42 months in prison. Williams was also ordered to pay restitution of $108,471.66 to the IRS.

Carroll and Rayford have also entered guilty pleas. Carroll is scheduled to be sentenced on Tuesday, November 24, 2015. Rayford is scheduled to be sentenced on Thursday, December 3, 2015.

This investigation was conducted by IRS-Criminal Investigation.

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

A former lieutenant with the Carroll County, Tennessee, Sheriff’s Office has pleaded guilty to a civil rights violation for using a taser on a restrained pre-trial detainee, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division, and U.S. Attorney Edward L. Stanton III of the Western District of Tennessee.

Jeanette Sue Barnes, 48, pleaded guilty in federal court in Jackson, Tennessee, to one count of deprivation of rights under color of law.  During the plea hearing, Barnes admitted that on March 22, 2015, she used her taser to drive-stun D.D.P., a pre-trial detainee, for 12 seconds, even though he was secured in a restraint chair and posed no threat to her or other officers.  As a result of the assault, D.D.P. suffered pain and burns to his skin.

Barnes will be sentenced on Feb. 18, 2016, and faces a maximum sentence of 10 years in prison. 

“The defendant abused the trust given to her as a law enforcement officer by needlessly inflicting pain on a restrained individual,” said Principal Deputy Assistant Attorney General Gupta.  “The Justice Department will vigorously prosecute those who violate the civil rights laws to ensure that the rights of all individuals, including those in custody, are protected.”

“No one is above the law, especially those who have taken an oath to uphold the law,” said U.S. Attorney Stanton III.  “Ensuring that law enforcement officers do not victimize the very citizens they are sworn to protect remains a top priority of this office.”

The FBI and Tennessee Bureau of Investigations investigated this case.  The case is being prosecuted by Assistant U.S. Attorney Mark Erskine of the Western District of Tennessee and Trial Attorney Jared Fishman of the Civil Rights Division.

Barnes Plea Agreement

WASHINGTON – A former lieutenant with the Carroll County, Tennessee, Sheriff’s Office has pleaded guilty to a civil rights violation for using a taser on a restrained pre-trial detainee, announced U.S. Attorney Edward L. Stanton III of the Western District of Tennessee, and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Department of Justice’s Civil Rights Division.

Jeanette Sue Barnes, 48, pleaded guilty in federal court in Jackson, Tennessee, to one count of deprivation of rights under color of law. During the plea hearing, Barnes admitted that on March 22, 2015, she used her taser to drive-stun D.D.P., a pre-trial detainee, for 12 seconds, even though he was secured in a restraint chair and posed no threat to her or other officers. As a result of the assault, D.D.P. suffered pain and burns to his skin.

Barnes will be sentenced on February 18, 2016, and faces a maximum sentence of 10 years in prison.

"No one is above the law, especially those who have taken an oath to uphold the law," said U.S. Attorney Stanton III. "Ensuring that law enforcement officers do not victimize the very citizens they are sworn to protect remains a top priority of this office."

"The defendant abused the trust given to her as a law enforcement officer by needlessly inflicting pain on a restrained individual," said Principal Deputy Assistant Attorney General Gupta. "The Justice Department will vigorously prosecute those who violate the civil rights laws to ensure that the rights of all individuals, including those in custody, are protected."

The FBI and Tennessee Bureau of Investigations investigated this case. The case is being prosecuted by Assistant U.S. Attorney Mark Erskine of the Western District of Tennessee and Trial Attorney Jared Fishman of the Civil Rights Division.

Memphis, TN – After a four-day trial, a federal jury found 20-year-old Khalil Davis guilty of two business robberies as well as brandishing and discharging a firearm in relation to a crime of violence. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty verdict today.

According to evidence presented in court, in the early morning hours of January 26, 2014, 20-year-old Khalil Davis, a member of the Bloods street gang, entered a Circle K convenience store on Poplar Avenue masked in a bandana and armed with a firearm. Davis allegedly pointed the gun at the store clerk’s face and took money from both the cash register and safe. He then placed the gun to the female clerk’s head and forced her to perform oral sex on him before fleeing the scene.

On the same day, less than an hour later, Davis, along with a co-conspirator, 32-year-old Antonio Griffin, entered the Marathon Gas Station on Poplar Avenue. After Griffin approached the counter to make a purchase, Davis ran behind the counter and put a gun to the store clerk’s head. A struggle ensued between Davis and the clerk while Griffin grabbed money out of the cash register and fled the store. Davis was able to eventually release himself with the gun. As he exited the store, Davis fired one shot at the clerk.

In July 2015, Davis’ co-conspirator, Griffin, pled guilty to one count of committing a robbery affecting interstate commerce and one count of brandishing and discharging a firearm in relation to a crime of violence. He’s scheduled to be sentenced on Friday, November 20th before Judge Samuel H. Mays.

On Friday, November 13, 2015, a jury convicted Davis on two counts of committing a robbery affecting interstate commerce and two counts of brandishing and discharging a firearm in relation to a crime of violence.

Davis faces up to 20 years imprisonment on each robbery count. He faces a mandatory minimum sentence of 35 years on each weapon count.

Davis is scheduled to be sentenced by Judge Mays on Thursday, February 25, 2016.

The case was investigated by Safe Streets Task Force and the Memphis Police Department.

The case was prosecuted by Assistant U.S. Attorneys Samuel Stringfellow and Kevin Whitmore.

Jackson, TN – A married couple has pled guilty to partaking in a scheme to defraud Medicare of more than $400,000 by making fraudulent medical equipment orders and paying illegal kickbacks. Four defendants were previously indicted in the scheme — three in February 2015 and one in October 2015. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty pleas today.

According to evidence presented in court, Dennis Sensing, 62, and Brenda Sensing, 45, both of New Albany, Mississippi partook in a lucrative health care and kickback fraud scheme between 2011 and 2013. The conspiracy also involved another married couple, Sandra and Calvin Bailey, as well as their son, Bryan Bailey, and accomplice, Cindy Mallard.

According to the charging documents, the Sensings operated the Adult and Children Medical Clinic in Guntown, Mississippi while also working as salespersons for Jaspan Medical Systems, a durable medical equipment company with an office in Jackson, Tennessee. Although Brenda Sensing was listed as a Jaspan employee paid via sales commissions, the commissions paid to her were actually for sales by Dennis Sensing. Pay was arranged to go to Brenda Sensing to avoid tax obligations incurred by her husband.

In their pleas, the Sensings admitted to paying illegal referral fees to Guntown, Mississippi residents, labeled "runners," to identify Medicare cardholders. Dennis Sensing would then market power wheelchairs and back braces to the cardholders. The Sensings also admitted to forging medical records and signatures of a nurse practitioner on medical records to create the appearance that cardholders had been evaluated by a medical provider for medical equipment when, in fact, no provider evaluated the cardholder. Some of the cardholders had no need for the medical equipment.

Nevertheless, the Sensings sent the forged records to Jaspan, which later used the records to obtain payments from Medicare for the equipment.

In February 2015, Calvin Bailey, Sandra Bailey, and Mallard were indicted for conspiracy to commit health care fraud and to pay illegal kickbacks in connection with health care services. Sandra Bailey was also indicted on multiple counts of health care fraud and paying illegal kickbacks to health care providers and patient-referral sources.

In October 2015, the indictment was superseded to add the Baileys’ son, Bryan Bailey, as a fourth defendant, and name the Sensings as persons involved in the conspiracy. Bryan Bailey was indicted for conspiracy to commit health care fraud and to pay illegal kickbacks in connection with health care services. He was also charged with wire fraud.

According to plea agreements entered by the Sensings, medical equipment orders resulting from illegal kickbacks and fraud made by the Sensings resulted in payments by Medicare in an amount between $400,000 and $1,000,000.

On Thursday, the Sensings individually pled guilty before Chief Judge J. Daniel Breen to one count of conspiracy to commit health care fraud and pay illegal kickbacks.

The defendants face individual sentences of up to five years imprisonment and a fine of up to $250,000.

Both defendants are scheduled to be sentenced on February 11th at 10 a.m. before Chief Judge Breen.

The case is being investigated by the Department of Health and Human Services - Office of the Inspector General, Federal Bureau of Investigation, and Tennessee Bureau of Investigation.

The case is being prosecuted by Assistant U.S. Attorney John Fabian on the government’s behalf.

Memphis, TN – After a three day trial, the alleged current head governor of FAM Mob, a violent street gang based throughout North Memphis and Shelby County, was found guilty of felony firearm possession by a federal jury. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty verdict today.

According to the indictment, 28-year-old Jarvis Lewis, aka Jabo, of Memphis, unlawfully possessed a Jimenez Arms 9mm pistol. According to information presented in court, on October 27, 2014, Memphis Police officers responded to shots fired at the Ridgecrest Apartments Complex. The complex is allegedly used as the headquarters of FAM Mob, a violent street gang prevalent in Frayser, Northhaven, Raleigh and Millington.

Upon arriving on the scene, officers learned that two men with guns — one of them being Lewis — entered a unit in the apartment complex, according to information presented in court. Subsequent to locating the unit, officers asked for the defendants to leave the residence. After the defendants refused to comply, law enforcement gained entry into the apartment. Lewis and his co-defendant were located in the apartment’s master bedroom. A loaded 9mm pistol, partially sticking out of a bag of sugar, was also located by law enforcement while searching the apartment, according to court information.

FAM Mob’s hierarchy allegedly consists of a head governor, governors, CEOs, big "homies" and little "homies." Lewis allegedly became the head of FAM Mob after its former head governor, James McCracken, was indicted federally in November 2014 for violating the Hobbs Act. The Hobbs Act makes it a federal crime to commit a robbery that interferes with interstate commerce. In July 2011, McCracken and other FAM Mob members allegedly robbed a drug dealer who was trafficking narcotics manufactured outside of the district.

On Wednesday, November 4, 2015, a federal jury convicted Lewis of one count of felony possession of a firearm.

Lewis is scheduled to be sentenced by Judge Sheryl H. Lipman on February 5, 2016. He faces up to 10 years imprisonment and a fine of up to $250,000.

The case was investigated by the Project Safe Neighborhoods Task Force, which is comprised of representatives from the Memphis Police Department, Shelby County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

Assistant U.S. Attorneys Kevin Whitmore and Elizabeth Rogers prosecuted the case on the government’s behalf.

Memphis, TN – The main conspirator in a lucrative federal benefit fraud scheme that defrauded the government of $400,000 has been sentenced to 27 months in prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.

According to the indictment, Ray Chism III defrauded the government by purchasing Supplemental Nutrition Assistance Program (SNAP) benefits from recipients for cash in amounts less than the face value of the benefits. He would then redeem the benefits at full monetary value.

From October 2011 to December 2013, Chism recruited multiple SNAP recipients willing to sell their allotted benefits for amounts less than face value. Chism subsequently redeemed the benefits through Maxi Foods, a grocery store owned by Chism’s brother, Remark Chism, for full monetary value. In October, Remark Chism was sentenced to 37 months imprisonment for masterminding a separate $2.8 million federal benefit fraud scheme.

SNAP (formerly known as Food Stamps) is a program designed to help low- and middle-income families purchase food. A SNAP beneficiary is provided a designated amount of funding each month via a rechargeable Electronic Benefits Transfer (EBT) card. Cardholders are able to use the allotted funding to purchase eligible food items at authorized retailers. Maxi Foods possessed a SNAP EBT card system, enabling SNAP beneficiaries to pay for eligible food items with their EBT card.

Chism also masterminded a scheme to defraud the Child Care Certificate Program, which provides federal funding to assist underprivileged families with child care costs, from October 2011 to December 2013. Chism paid cash to parents who qualified for Certificate Program benefits in exchange for use of their child care certificates. After acquiring the information, Chism would falsely report the children’s attendance to his daycare center, Helping Hands Enrichment Center, and receive reimbursement for care. Chism also provided non-qualifying parents with false employment verification, which qualified them for the Certificate Program.

In July 2015, Chism pled guilty to one count of conspiracy to commit SNAP benefit fraud and one count of conspiracy to commit child care benefit fraud.

On Tuesday, November 3rd, U.S. District Judge John T. Fowlkes Jr. sentenced Chism to 27 months imprisonment. Chism was also ordered to pay $200,000 in restitution.

This investigation was conducted by the United States Department of Agriculture Office of the Inspector General; United States Secret Service; United States Marshals Service; Memphis Police Department – Organized Crime Unit; and the Tennessee Department of Human Services.

Assistant U.S. Attorneys Larry Laurenzi and Debra Ireland prosecuted the case on the government’s behalf.

Memphis, TN – A man responsible for fatally shooting an off-duty Memphis Police officer has been indicted federally, along with his wife. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.

According to the indictment, Lorenzo Clark, 36, of Memphis, unlawfully possessed a Glock 9mm pistol on Sunday, October 11, 2015. The firearm was reportedly used by the defendant in the fatal shooting of 31-year-old Terence Olridge, an officer with the Memphis Police Department (MPD). Olridge was off duty at the time of the shooting.

According to the federal complaint, MPD officers responded to a shooting call at Lorenzo Clark’s Cordova residence. Officers later recovered the Glock 9mm alleged to be used in the shooting from the defendant. Lorenzo Clark gave a post-Miranda statement admitting to possession of the Glock 9mm prior to and during the shooting with Olridge. After searching Clark’s home, law enforcement recovered two additional firearms – a Colt 5.56mm rifle and an Escort 12 gauge shotgun.

Lorenzo Clark’s wife, Natalie Clark, 37, of Memphis, has also been charged in the indictment. Between February 2012 and October 2015, Natalie Clark provided three firearms — a Glock 9mm, Escort 12 gauge and Colt 5.56mm rifle — to her husband despite knowing he had been convicted of a felony, according to the indictment.

Lorenzo Clark has been charged with three counts of felony possession of a firearm. He faces up to 10 years imprisonment and a fine of up to $250,000 on each count.

Natalie Clark has been charged with three counts of disposing of a firearm to a felon. She faces up to 10 years imprisonment and a fine of up to $250,000 on each count.

The case is being investigated by the MPD and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

Assistant U.S. Attorney Marques Young is prosecuting the 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.

Memphis, TN – A Memphis man who masterminded a federal benefit fraud scheme that cost the government approximately $2.8 million has been sentenced to 37 months in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.

From October 2011 to December 2013, Remark Chism, 35, defrauded two public assistance programs: Supplemental Nutrition Assistance Program (SNAP) benefits and Child Care Certificate Program.

Chism, along with co-conspirators, recruited multiple SNAP recipients willing to sell their allotted benefits for amounts less than face value. The benefits were redeemed through Maxi Foods, a grocery store owned by Chism, for full monetary value. More than $1.9 million in SNAP benefits were unlawfully redeemed for cash over the two-year period.

SNAP (formerly known as Food Stamps) is a program designed to help low- and middle-income families purchase food. A SNAP beneficiary is provided a designated amount of funding each month via a rechargeable Electronic Benefits Transfer (EBT) card. Cardholders are able to use the allotted funding to purchase eligible food items at authorized retailers. Maxi Foods possessed a SNAP EBT card system, enabling SNAP beneficiaries to pay for eligible food items with their EBT card.

Chism also masterminded a scheme to defraud the Certificate Program, which provides federal funding to assist underprivileged families with child care costs, from October 2011 to December 2013. Chism, along with co-conspirators, paid cash to parents who qualified for Certificate Program benefits in exchange for use of their child care certificates. After acquiring the information, Chism would falsely report the children’s attendance at his daycare center, K.A.R.E. 3 Enrichment Center, and receive reimbursement for care.

The loss to the Certificate Program through K.A.R.E. is estimated at more than $986,000 over the two-year period.

In June 2015, Chism pled guilty today to one count of conspiracy to commit SNAP benefit fraud, one count of conspiracy to commit child care benefit fraud, and one count of false statements.

On Wednesday, October 28th, Judge Samuel H. Mays sentenced Chism to 37 months in prison on each of the counts. The prison terms will be served concurrently. Chism was also ordered to pay more than $2.8 million dollars in restitution.

This investigation was conducted by the United States Department of Agriculture Office of the Inspector General; United States Secret Service; United States Marshals Service; Memphis Police Department Organized Crime Unit; and the Tennessee Department of Human Services.

Assistant U.S. Attorneys Larry Laurenzi and Debra Ireland prosecuted the case on the government’s behalf.

Jackson, TN – The main conspirator in a drug ring responsible for distributing massive amounts of methamphetamine throughout West Tennessee has been sentenced to 144 months in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.

According to the indictment, between February and August 2013, Richard E. Alley, 41, of Hardin County, conspired with more than a dozen others to unlawfully distribute and possess with intent to distribute significant quantities of meth in various West Tennessee jurisdictions, including Clifton, Savannah, Wayne County and Hardin County.

Operation Mexicalley, a year-and-a-half-long investigation conducted by federal, state, and local law enforcement agencies, revealed that Alley and 17 others were immersed in a drug ring conspiracy to distribute meth and marijuana in the state’s western district. Fifteen of the defendants were indicted in January 2014 and three others in August 2014. Alley’s drug trafficking organization was transporting the meth from Mexico into West Tennessee for distribution, hence the name "Operation Mexicalley." Thus far, 17 of the defendants have pled guilty and 14 have been sentenced. One defendant, Oscar Alvarez Franco, remains a fugitive.

Over the course of Operation Mexicalley’s duration, 13 state and federal search warrants were executed on residences of the defendants. During these searches, law enforcement officials seized more than 640 grams of meth and over 80 grams of marijuana. Law enforcement also seized 75 firearms, which included an arsenal of pistols, revolvers, rifles, and shotguns.

In July 2015, Alley pled guilty to one count of conspiracy to distribute and possess with intent to distribute meth. He also pled guilty to one count of aiding and abetting, distributing, attempting to distribute, and possessing with intent t0 distribute meth.

Last week, Chief U.S. District Judge J. Daniel Breen sentenced Alley to 144 months on the conspiracy charge and 60 months on the aiding and abetting charge. The sentences will be served concurrently.

The case was investigated by the Federal Bureau of Investigation, Tennessee Bureau of Investigation, 24th Judicial Drug Task Force, and Lexington Police Department.

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

Jackson, TN – The February 2015 indictment of a married couple and their accomplice, charging them with defrauding Medicare, has been superseded to add the couple’s son as a fourth defendant. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the superseding indictment today.

In addition to Calvin Bailey, Sandra Bailey, and Cindy Mallard, Bryan Bailey has also been charged in a superseding indictment alleging a conspiracy to commit health care fraud and to pay illegal kickbacks in connection with health care services. Bryan Bailey has also been charged with wire fraud.

According to the superseding indictment, Sandra Bailey and Calvin Bailey sold durable medical equipment including power wheelchairs and back braces. From November 2009 to September 2011, they were both employed at Jaspan Medical Systems, a durable medical equipment company with an office in Jackson, Tennessee. Durable medical equipment is designed for repeated use and medical purpose.

The Baileys’ co-defendant, Mallard, also worked as a salesperson for Jaspan from June 2011 to September 2012. Prior to that, Mallard was employed as an office manager at Medina Family Medical Clinic from November 2009 until June 2011.

Bryan Bailey, Sandra Bailey and Calvin Bailey’s son, was the operations manager at Jaspan from December 2009 to July 2013.

From at least November 2009 to April 2013, all four defendants were members of a conspiracy to defraud Medicare, a federal health care benefit program, of thousands and also pay illegal kickbacks to health care providers and patient-referral sources.

Earlier this year, three of the defendants — Calvin Bailey, Sandra Bailey, and Mallard — were indicted for conspiracy to commit health care fraud and to pay illegal kickbacks in connection with health care services. Sandra Bailey was also indicted on multiple counts of health care fraud and paying illegal kickbacks to health care providers and patient-referral sources.

Sandra Bailey and Mallard each worked for several years in health care businesses in the Jackson, Tennessee area. Calvin Bailey was employed as the principal at Medina Elementary School in Medina, Tennessee, and was also employed by various medical equipment supply companies.

According to the superseding indictment, Sandra Bailey paid illegal kickbacks to referral sources to identify Medicare card-holders. Sandra Bailey marketed power wheelchairs and back braces to the Medicare card-holders. Commissions for sales of wheelchairs to the Medicare card-holders identified by the referral sources were distributed among the four defendants, as well as to Bryan Bailey’s wife and Mallard’s husband and daughter.

In addition to the illegal kickback payments to referral sources, Sandra Bailey also paid kickbacks to some health care providers who performed — or were supposed to have performed — face-to-face evaluations of card-holders to qualify them for power wheelchairs. Mallard, who was the office manager at Medina Family Medical Clinic, assisted Sandra Bailey by visiting card-holders with her. Mallard also filled out forms that were supposed to be completed during a face-to-face evaluation of a patient by a physician or other qualified health care provider. Mallard then assisted Sandra Bailey in getting those forms signed by providers who were supposed to have conducted face-to-face evaluations of the card-holders. Mallard also received kickback payments on behalf of one of the health care providers who signed the forms.

All four defendants face up to five years imprisonment and fines of up to $250,000 on the conspiracy charge.

Sandra Bailey also faces up to 10 years and a fine of up to $250,000 on each of eight counts of health care fraud.

Sandra Bailey faces up to five years and a fine of up to $250,000 on each of nine counts of paying illegal kickbacks.

In addition to the conspiracy charge, Bryan Bailey faces up to 20 years and a fine of up to $250,000 for wire fraud.

This investigation is being conducted by the Department of Health and Human Services - Office of the Inspector General, the Federal Bureau of Investigation, and the Tennessee Bureau of Investigation.

The case is being prosecuted by Assistant U.S. Attorney John Fabian 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.

Memphis, TN – Five men have been indicted for their roles in a shipping theft scheme that defrauded FedEx of more than $1.7 million. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.

The defendants include:

Christopher T. Crawford, 31, Memphis, former FedEx material handler
Akeem Gowdy, 23, Memphis, former FedEx material handler
Tavaris Mickens, 23, Memphis, former FedEx supervisor
Juan Royal, 24, New York City, co-conspirator
Jordan West, 27, New York City, co-conspirator

According to the indictment, throughout 2013 and 2014, all five defendants engaged in a conspiracy to commit interstate shipping theft of wireless mobile devices from both Verizon and AT&T. The mobile devices were being shipped throughout the United States by FedEx.

Three of the defendants — Crawford, Gowdy and Mickens — were employed with FedEx during the scheme’s duration. They used fraudulent FedEx corporate shipping accounts to print labels, which they used to over-label boxes of wireless devices. These boxes were diverted to other known and unknown co-conspirators in New York City and other cities through interstate commerce. Each box of merchandise contained thousands of dollars worth of Verizon and/or AT&T wireless mobile devices.

As part of the fraud, Crawford and West sent $10,000 in U.S. currency via FedEx to one another. In mid-2013, Crawford also contacted a FedEx vendor call center in Tucson, Arizona to set up a fraudulent corporate shipping meter account via his wireless mobile telephone.

According to the indictment, each of the defendants knew the wireless devices were stolen when they engaged in acts to perpetrate the crime. Ultimately, the interstate shipping theft scheme defrauded FedEx of more than $1.7 million.

All five defendants are charged with one count of conspiracy and one count of interstate shipping theft. The defendants face individual sentences of up to 10 years imprisonment and fines of up to $250,000 for each count.

Crawford and West are also charged with one count of mail fraud. They face individual sentences of up to 20 years imprisonment for this offense and fines of up to $250,000.

Crawford is also charged with one count of wire fraud. He faces up to 20 years imprisonment for this offense and a fine of up to $250,000.

The case is being investigated by the United States Secret Service, Federal Bureau of Investigations, and Memphis Cargo Theft Task Force.

Assistant U.S. Attorney Damon K. Griffin is prosecuting this case on the government’s behalf.

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

Memphis, TN – A former federal correctional officer and a federal inmate have been indicted for attempting to smuggle marijuana into a Memphis prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.

According to the indictment, Keair Kemp was a public official and employed as a correctional officer at Federal Correctional Institution (FCI) Memphis. Travonte Johnson was an inmate at FCI Memphis.

Between mid-2015 and August 2015, Kemp and Johnson developed a scheme to smuggle marijuana into FCI Memphis. In exchange for cash, Kemp agreed to smuggle marijuana into the prison and to Johnson, thus violating his official duties as a correctional officer.

Kemp has been charged with one count of accepting money in return for being influenced to act in violation of his official duties. He is also charged with one count of attempting to provide a prohibited object, marijuana, to an inmate.

Johnson is charged with one count of offering money to a public official, to influence the performance of their official duties. Johnson is also charged with attempting to possess a prohibited object, marijuana, in prison.

If convicted, Kemp and Johnson face individual sentences of up to 15 years imprisonment and fines of up to $250,000 for the bribery charge. They each face up to five years imprisonment and fines of up to $250,000 on the contraband charge.

The case is being investigated by the Federal Bureau of Investigation, Department of Justice - Office of Inspector General, and the Federal Bureau of Prisons.

Assistant U.S. Attorney Mark Erskine is prosecuting the 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.

Memphis, TN – The man who fatally shot off-duty Memphis Police Department (MPD) officer Terence Olridge last Sunday has been charged federally with felony possession of a firearm. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the charge today.

On Sunday, October 11, 2015, 36-year-old Lorenzo Clark unlawfully possessed a Glock 9mm pistol. According to the federal complaint, MPD officers responded to a shooting call at Clark’s Cordova residence. Officers later recovered a Glock 9mm from Clark.

Clark gave a post-Miranda statement admitting to possession of the Glock 9mm prior to and during the shooting with Olridge, a 31-year-old MPD officer.

If convicted of felony possession of a firearm, Clark faces up to 10 years in federal prison.

The case is being investigated by the MPD and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.