Western District of Tennessee

Memphis, TN – An in-home caretaker has pled guilty to bank fraud and conspiring to commit mail fraud in 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 plea today.

According to the indictment, Shirley Hardaway, 59, 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 bank fraud and conspiracy to commit mail fraud.

The plea included a criminal forfeiture provision in the amount of money stolen from the decedent’s investment accounts: $80,423.67.

Hardaway faces up to 30 years imprisonment and a fine of up to $1 million on the bank fraud charge. She faces up to 20 years imprisonment and a fine of up to $250,000 on the conspiracy to commit mail fraud charge.

Hardaway is scheduled to be sentenced by Judge Jon Phipps McCalla on January 6th, 2016.

The case was investigated by the United States Secret Service.

Assistant U.S. Attorney Leetra Harris is prosecuting the case on the government’s behalf.

Memphis, TN – A former employee of JabberBlabber, Inc. a Memphis-based children’s magazine, has pled guilty to defrauding the publication of more than $70,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the plea today.

According to information presented in court, Katrina Sears, 32, of Horn Lake, MS, worked as an accounts receivable clerk for JabberBlabber between February 2008 and February 2014. Over the six-year period, her duties included managing both the publication’s receivable and payable accounts as well as performing routine clerical duties.

Sears had authorization to receive and open letters delivered to JabberBlabber; checks were enclosed in many of the letters. Sears was required to record the payments into the magazine’s QuickBooks accounting software program and subsequently provide them to designated staff members for deposit. Sears was not authorized to conduct any banking transactions on JabberBlabber’s behalf including deposits and withdrawals, according to information presented in court.

Between December 2010 and February 2014, Sears embezzled more than 150 letters containing checks made payable to JabberBlabber. According to court information, Sears reportedly forged the payee line on the checks and deposited the money into her personal Bank of America account. Sears would then delete or edit the corresponding invoice from the QuickBooks accounting software.

According to court information, a review of JabberBlabber’s accounting records by the United States Postal Inspection Service showed that approximately 160 invoices had been deleted or edited from the software. Furthermore, a review of Sears’ bank records

revealed she had deposited more than $70,000 worth of checks initially made payable to JabberBlabber.

On Thursday, October 8th, 2015, Sears pled guilty to one count of obstruction of correspondence.

Sears faces up to five years imprisonment and a fine of up to $250,000.

She’s scheduled to be sentenced by Judge John T. Fowlkes Jr. on January 8th, 2016.

The case was investigated by the United States Postal Inspection Service.

Assistant U.S. Attorney Leetra Harris is prosecuting the case on the government’s behalf.

Memphis, TN – Two men have pled guilty to 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 pleas today.

According to the indictment, from August 2007 to July 2013, Andre Reddix, 59, 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 amongst 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.

On Wednesday, September 30th, Reddix pled guilty to conspiracy to defraud the VA of approximately $1 million.

On Friday, September 11th, White pled guilty to conspiracy to defraud the VA of approximately $1 million.

Both pleas included $1 million criminal forfeiture provisions.

White is scheduled to be sentenced by Judge Samuel H. Mays Jr. on December 11, 2015.

Reddix is scheduled to be sentenced by Judge Samuel H. Mays Jr. on January 7, 2016.

Both defendants face individual sentences of up to five years imprisonment when sentenced. In addition to the $1 million criminal forfeiture provisions, the defendants face individual fines of up to $250,000.

Memphis, TN – A woman with multiple felony convictions has been sentenced to 10 years imprisonment for bank fraud and aggravated identity theft. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentencing today.

According to facts presented in court, from December 2014 to March 2015, Patricia Ann Johnson, 38, targeted and obtained the bank account numbers and other identifying personal information of individuals who had the same name as her. She impersonated these individuals to make cash withdrawals from their accounts at area banks, which included First Citizens, Regions, SunTrust, and First Tennessee. The victims were from Tennessee and other states.

One of the fraudulent bank transactions occurred on December 3, 2014 at First Citizens Bank on Highway 70. The defendant impersonated another Patricia Johnson and obtained $9,000 from the victim’s account.

Another fraudulent transaction occurred on March 7, 2015 at First Tennessee Bank on Kirby Parkway. Once again, the defendant impersonated another Patricia Johnson and obtained $4,000 from the victim’s account.

On March 19, 2015, the defendant was arrested while attempting to make a fraudulent transaction at SunTrust Bank on Poplar. In total, the defendant obtained more than $20,000 during her scheme.

Johnson has an extensive criminal record, which includes 24 felony convictions.

Johnson was charged with bank fraud, aggravated identity theft, and violating the supervised release of her last federal conviction for identity theft. She was sentenced to 10 years imprisonment on Monday, September 28th by Judge Jon Phipps McCalla.

The case was investigated by the United States Secret Service.

Assistant U.S. Attorney Stephen Hall prosecuted the case.

Jackson, TN – A former Obion County Jail correctional officer, a jail inmate, and the inmate’s girlfriend have all been indicted on federal drug charges. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.

According to the indictment, from February 2015 until June 2015, Markia Patton, 30; Cara Bing, 34; and Shalyndrea Williams, 25, conspired with each other to smuggle and distribute marijuana inside Obion County Jail.

Patton, an inmate at the Obion County Jail, had his girlfriend, Williams, bring marijuana into the jail. From there, Bing, a correctional officer at the time, would retrieve the marijuana, smuggle it inside the jail, and distribute it to Patton.

According to information presented in court, agents with the Tennessee Bureau of Investigation (TBI) were informed that Patton was having marijuana brought into the jail. The investigation also revealed that Bing was aiding Patton in the criminal offense.

Based on the aforementioned information, surveillance was set up on the entrance to the women’s restroom in the lobby of the facility. In June 2015, agents discovered more than 30 grams of marijuana in the trash can of the restroom. Williams was allegedly directed by Patton to bring the drugs into the restroom.

Williams allegedly dropped off drugs and tobacco in the facility’s women’s restroom on at least six occasions for Patton, according to court information. Bing was paid several hundred dollars to retrieve and deliver the smuggled drugs to Patton.

All three defendants have been charged with one count of conspiracy to distribute and possess with the intent to distribute marijuana. They each have also been charged with one count of aiding and abetting, distributing, attempting to distribute, and possessing with the intent to distribute marijuana.

If convicted, the defendants face individual sentences of up to five years imprisonment. They also face individual fines of up to $250,000.

This case’s investigation was led by TBI. The Obion County Sheriff’s Department and 27th Judicial District Drug Task Force assisted with the investigation.

This case is being prosecuted by Assistant U.S. Attorney Beth Boswell.

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

Memphis, TN – Several alleged members of the Gangster Disciples have been indicted federally for their roles in the attempted murder of five teenagers in South Memphis.

U.S. Attorney Edward L. Stanton III; Shelby County District Attorney General Amy Weirich; Memphis Police Director Toney Armstrong; Shelby County Sheriff Bill Oldham; Special Agent in Charge for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Steven Gerido; and Federal Bureau of Investigation (FBI) Special Agent in Charge Todd McCall announced the superseding indictment today.

According to the superseding indictment, Ranito Allen, aka Nito, 35; Florence Anthony, aka Nikki, 36; Edwin Carvin, aka Ren, 38; Brandon Milton, aka Lil Folk, 30; and Erik Reese, aka E, 35, all of Memphis, were charged with five counts of attempted murder in aid of racketeering, among other offenses. Candies Wesley, 29, also of Memphis, was charged with being an accessory after the fact of attempted murder in aid of racketeering.

Alleged gang member Robert Mallory, aka Rambo, 33, was previously charged in this case. He remains charged in the superseding indictment.

As the superseding indictment alleges, all seven defendants are members of the Gangster Disciples, which is a nationally-known organized street gang that originated in the Chicago area and spread to other regions of the United States, including Memphis and surrounding areas. The Gangster Disciples are responsible for committing multiple acts of violence, including murder, attempted murder, and aggravated assault. The gang is also responsible for distributing large quantities of narcotics and trafficking firearms.

In June 2014, the defendants allegedly participated in the attempted murder of five teenagers in South Memphis for the purpose of gaining entrance to, maintaining or increasing their position in the Gangster Disciples.

Six of the defendants – Ranito Allen; Florence Anthony; Edwin Carvin; Brandon Milton; Robert Mallory; and Erik Reese – were charged with five counts of attempted murder. They each were also charged with five counts of using and carrying a firearm during and in relation to a crime of violence, aiding and abetting.

Mallory, Allen, and Carvin have all also been charged with being felons in possession of firearms.

This case is being investigated by the FBI, which is a part of the Multi-Agency Gang Unit (MGU). MGU is also comprised of the Memphis Police Department; Shelby County Sheriff’s Office; U.S. Attorney’s Office; and the Shelby County District Attorney General’s Office.

The case is being prosecuted by Assistant U.S. Attorneys Jerry Kitchen and Sam Stringfellow and David N. Karpel of the Criminal Division’s Organized Crime and Gang Section, in cooperation with the Shelby County District Attorney General’s Office.

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

Six alleged members of the violent Gangster Disciples Gang have been indicted by a federal grand jury for their roles in the attempted murders of five teenagers in South Memphis, Tennessee.  Three alleged gang members previously had been charged in this case.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Edward L. Stanton III of the Western District of Tennessee made the announcement.

Ranito Allen, aka Nito, 35; Florence Anthony, aka Nikki, 36; Edwin Carvin, aka Ren, 38; Brandon Milton, aka Lil Folk, 30; and  Erik Reese, aka E, 35, all of Memphis, Tennessee, were charged in a superseding indictment unsealed today with five counts of attempted murder in aid of racketeering and related firearms offenses.  In addition, Candice Wesley, 29, of Memphis, was charged with being an accessory after the fact.

According to the superseding indictment, the defendants are members of the Gangster Disciples, which is a nationally-known organized street gang that originated in the Chicago area and spread to other regions of the United States, including the greater Memphis area.  The superseding indictment alleges that members and associates of the Gangster Disciples engaged in acts of violence, including murder, attempted murder and aggravated assault, as well as narcotics distribution and other criminal activities.

Specifically, the superseding indictment charges the defendants with participating in the attempted murders of five teenagers in South Memphis on or about June 21, 2014.  According to the superseding indictment, the defendants did so for the purpose of gaining entrance to, or maintaining or increasing their positions in, the Gangster Disciples.

Tony Coburn, aka Blue, 26; Robert Mallory, aka Rambo, 33; and Almeda Burgess, aka Big Heavy, 28, previously were charged in this case.  Mallory remains charged in the superseding indictment.  Coburn pleaded guilty on July 28, 2015, to his role in the shootings, and Burgess pleaded guilty on Sept. 9, 2015, to being an accessory after the fact.

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

This case is being investigated by a multi-agency task force consisting of the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Memphis Multi-Agency Gang Unit; the Memphis Police Department; the Shelby County, Tennessee, Sheriff’s Office and the Atascosa County, Tennessee, District Attorney’s Office.

The case is being prosecuted by David N. Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Jerry Kitchen and Sam Stringfellow of the Western District of Tennessee.  The Shelby County District Attorney’s Office has provided substantial assistance.

Mallory et al Superseding Indictment

Memphis, TN – This Saturday, the U.S. Attorney’s Office will join the Drug Enforcement Administration (DEA) for its 10th National Prescription Drug Take-Back. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, and Michael Stanfill, Assistant Special Agent in Charge of the DEA’s Atlanta Field Division – Memphis Resident Office, announced the collaboration today.

"Prescription drug abuse constitutes one of the greatest public safety and public health epidemics of our time, inflicting devastating, long-term effects on individuals – and destroying families, neighborhoods, and entire communities. Join our fight against this issue by ridding your medicine cabinets of any unneeded prescription drugs."

The Prescription Drug Take-Back will take place in West Tennessee and nationwide Saturday, September 26th, from 10 a.m. to 2 p.m. Collection sites will be set up throughout local communities for residents to safely dispose their unused, unwanted, and/or expired prescription drugs. Residents can visit

www.dea.gov to view the sites for every local community. New take-back locations will be added to the website on a continuous basis.

The nine Take-Backs that have occurred over the last four years have produced substantial results: More than 4.8 million pounds (2,411 tons) of prescription drugs have been collected by law enforcement. The last Take-Back event in September 2014 garnered 617,150 pounds (309 tons) of unwanted medicine across the country. In Tennessee, there were 11,510 pounds of prescription drugs disposed of by residents during last year’s take-back.

"Prescription drug abuse is a huge problem, and this is a great opportunity for folks around the country to help reduce the threat," Stanfill said. "Please clean out your medicine cabinet and make your home safe from drug theft and abuse."

Prescription drug abuse has grown into a nationwide epidemic over recent years. It's the fastest-growing illicit drug issue in the country, according to the DEA's "National Drug Threat Assessment." Two and a half times more Americans currently abuse prescription drugs than those using cocaine, heroin, hallucinogens, and inhalants combined. Furthermore, a significant amount of people suffer accidental poisonings and overdoses due to overconsumption of prescription drugs.

Launched in 2010, the Prescription Drug Take-Backs are a way to spread awareness of, and help suppress, pharmaceutical-controlled substance abuse, distribution, and theft across the country. Studies have revealed that many of those who abuse prescription drugs obtain them from family and friends. Furthermore, many Americans do not know how to properly dispose of their unused medicine, often flushing them down the toilet or throwing them away – both potential safety and health hazards.

In addition to dea.gov, other websites adults and children can visit to educate themselves on the dangers of legal and illegal drugs are

www.justhinktwice.com and www.GetSmartAboutDrugs.com.

Memphis, TN – The trial of a 51-year-old Millington man responsible for trafficking multiple underage teens for sex culminated Tuesday evening. A jury unanimously decided that Michael Lilley was guilty of multiple counts of sex trafficking minors and other offenses. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the verdict today.

"Michael Lilley coerced vulnerable, underage teens into sacrificing their bodies sexually for his own monetary gain," Stanton said. "Because a jury recognized how reprehensible his criminal actions were, Lilley will now be spending many years in a federal prison with no chance of parole."

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 Brighton High School and Millington High School.

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. The majority of the individuals who solicited sex lived in rural areas including Millington, Covington, and Atoka.

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

On the evening of Tuesday, September 22nd, a jury decided that Lilley was guilty of all counts. These counts include 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.

Lilley is scheduled to be sentenced by Judge John T. Fowlkes Jr. on Thursday, December 17th. He faces a minimum sentence of 15 years imprisonment and a maximum of life.

The investigation was conducted by the Federal Bureau of Investigation’s Child Exploitation Unit.

The case is being prosecuted by First Assistant U.S. Attorney Larry Laurenzi and Assistant U.S. Attorney Debra Ireland on the government’s behalf.

Memphis, TN – A Texas man has pled guilty to maintaining a scheme that defrauded a labor service provider of $300,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.

According to information presented in open court, Robert Ross was employed by Impact Logistics for two decades. Impact was a cost per unit labor service provider for large distribution companies such as Home Depot, Ryder Truck Rentals, and Discount Tire. Among the services provided by the company were loading and unloading trailers, performing assembly line work, sorting, and shrink wrapping products.

Impact operated in multiple states including Tennessee, California, Texas, Georgia, Mississippi, Illinois, and Pennsylvania. The company maintained a corporate office in Memphis. Impact employees were paid through direct deposit or prepaid debit cards titled "Transcards."

Ross held the position of senior director prior to his termination, according to court information. Under the role, he was responsible for managing Impact’s operations in Atlanta, Georgia and Dallas, Texas. He reportedly ensured that all billing and payroll was done accurately and submitted to the corporate office.

From February 2013 to June 2015, Ross defrauded Impact of $300,000 by making fraudulent representations regarding the employment status of former employees. He also made fraudulent entries in payroll records.

According to court information, Ross executed his scheme by intentionally failing to notify Impact when an employee resigned from the company. Thus, the former employee was not removed from the Impact payroll. Ross would falsely claim that the employees had lost their Transcards and requested for new prepaid cards to be activated. Impact would subsequently mail new Transcards from Memphis to Ross’

Mansfield, Texas residence. After receiving the Transcards, Ross submitted falsified time records in the name of the former employees to reflect that they had worked and were entitled to payment, according to court information. When Impact loaded money on the Transcards to pay the former employees, Ross used the funds for his personal benefit. Ultimately, he defrauded Impact of approximately $300,000.

Ross faces up to 20 years imprisonment for wire fraud and a fine of up to $250,000. He’s scheduled to be sentenced by Judge John T. Fowlkes Jr. on Thursday, December 17th.

The case is being investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney Carroll Andre is prosecuting the case on the government’s behalf.

Memphis, TN – An associate of the Memphis Mob, a violent street organization, has pled guilty to conspiring to possess hydrocodone with the intent to distribute. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.

According to the indictment, Terrance Freeman unlawfully conspired with others to distribute large quantities of hydrocodone throughout the Memphis area beginning at a time period unknown to law enforcement but up until April 2014.

A yearlong investigation conducted by the Federal Bureau of Investigation (FBI) into the Memphis Mob revealed Freeman’s illicit activity. According to information presented in court, FBI agents executed a search warrant on Freeman’s house in April 2014. Numerous hydrocodone pills, more than $8,000 in drug currency, and a loaded Glock 9mm pistol with a 31-round extended magazine were recovered during the search. Freeman, who has three prior felony convictions, was subsequently detained on federal drug charges.

On Monday, September 14th, he accepted a plea of 12 ½ years in federal prison. Freeman also faces a fine of up to $2,500,000 when sentenced.

He’s scheduled to be sentenced by Judge Samuel H. Mays Jr. on December 17, 2015.

The case was investigated by the FBI and the Memphis Police Department.

Assistant U.S. Attorneys Daniel French and Reagan Taylor are prosecuting this case on the government’s behalf.

Memphis, TN – A 22-year-old member of the Gangster Disciples has been sentenced to 10 years in federal prison for felony possession of a firearm. The sentencing was announced today by Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee.

Gregory Shaw a.k.a. Violent is part of a Ripley, TN-based subset of the Gangster Disciples, one of the nation’s largest gangs. According to the indictment, on November 4th, 2014, Shaw knowingly possessed a Smith & Wesson .380 caliber pistol. He was a felon at the time.

According to information presented at the sentencing hearing, Shaw, along with several other members of the criminal street gang, robbed five individuals in the Highland Street Apartments Complex at gunpoint. Shaw struck two of the individuals in the head with a pistol. The perpetrators reportedly yelled out phrases symbolizing their allegiance to the Gangster Disciples during the crime.

An anonymous individual alerted the Ripley Police Department of a commotion involving individuals with handguns, according to court information. When officers arrived on the scene, they saw several males running from the back of the apartment complex. Law enforcement was able to locate and apprehend Shaw shortly after the crime behind a nearby residence. A loaded Smith & Wesson .380 caliber pistol and one of the victims’ wallets were in his possession. The gun had been stolen during a residential burglary in May 2013.

Last week, Judge John T. Fowlkes Jr. sentenced Shaw to the statutory maximum of 120 months imprisonment.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; Tennessee Bureau of Investigation; Ripley Police Department; and 25th Judicial District Attorney General’s Office.

The case was prosecuted by Special Assistant U.S. Attorney Samuel Stringfellow on the government’s behalf.

Memphis, TN – An Ohio man has been indicted for possessing a firearm and ammunition at St. Jude Children’s Research Hospital. The indictment was announced today by Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee.

An affidavit indicates that in March 2015, Memphis police officers responded to an aggravated assault call at St. Jude. The defendant, 29-year-old Aaron Cauley, had allegedly threatened the life of his child’s mother while they were inside of a patient room.

Cauley and his child’s mother were engaged in a heated argument when he pointed a pistol and threatened to kill her, according to the affidavit. Afraid for her life, the victim alerted St. Jude security of the occurrence. Security subsequently notified Memphis police officers, who arrived on the scene and detained Cauley. Officers reportedly located a knife in the defendant’s pants pocket while searching him.

The affidavit also indicates that security discovered a green backpack hidden under some children’s clothing in the patient room where the alleged incident occurred. A

Sig Sauer 9mm pistol and 56 rounds of 9mm ammunition were found in the backpack. Two hunting knives were also found, according to the affidavit.

Cauley is charged with being a felon in possession of a firearm and ammunition. If convicted, he faces up to life in federal prison. He also faces up to $250,000 in fines.

The case is being investigated by the Memphis Police Department and Project Safe Neighborhoods.

Special Assistant U.S. Attorney Dean DeCandia is prosecuting this case on behalf of the government.

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

Memphis, TN – Thirteen people were indicted today on conspiracy charges for their alleged participation in a counterfeit check cashing scheme that defrauded Kroger of more than $300,000. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment.

The case is being investigated by the United States Secret Service and the United States Postal Inspection Service.

The defendants indicted include:

• Eureka Roshanda Mathis a/k/a Eureka Barnes, 36, Memphis

• Khiyenne Tarinee Daniel, 20, Memphis

• Iesha Lazaira Davis, 24, Memphis

• Crystal Lynette Dennis, 40, Memphis

• Paul Anthony Dowdy, 25, Memphis

• Zakiyyah Lateefah Fitzgerald a/k/a Zakiyyah Adams, 38, Memphis

• Christopher La Renza Gathright, 23, Memphis

• Larry Joseph Lennix Jr, 24, Memphis

• Marcus T. Simmons, 25, Memphis

• Candice Cammille Starks a/k/a Candice Gaither, 36, Memphis

• Dorsett Starks, 28, Memphis

• Tischinna Amon Walton, 19, Memphis

• Lonell D. Weeks Jr., 39, Memphis

As the indictment alleges, the scheme was orchestrated by 36-year-old Eureka Mathis, a resident of Memphis. From February 2013 to August 2014, Mathis stole checks from the mailboxes of local businesses, primarily the United Food and Commercial Workers Union’s (UFCW) local chapter #1529 in Cordova, TN. Other businesses in the Cordova area were also victims of Mathis’ mail thefts.

The UFCW is a labor union representing approximately 1.3 million grocery, retail, food processing, and meat packing industry workers in the United States. According to the indictment, approximately 75 percent of Kroger employees are represented by the UFCW through its 400 local union chapters.

Mathis fraudulently altered the stolen UFCW checks by changing the name of the payee to one of her co-conspirators. She also used the stolen checks as templates to create counterfeit checks made payable to her co-conspirators and to others she recruited to further her scheme.

Over the two-plus-year period Mathis executed her scheme, she recruited more than two dozen individuals to cash the counterfeit checks. The co-conspirators traveled to various Kroger locations nationwide, as well as other establishments that provided check cashing services, to cash the counterfeit checks. The checks ranged from several hundred dollars to more than $2,000.

• Each defendant is being charged with one count of conspiracy to commit mail theft and to pass and utter fictitious obligations. If convicted, they each face up to five years imprisonment and individual fines of up to $250,000.

• Each defendant is being charged with one count of conspiracy to commit bank fraud. If convicted, they each face up to 30 years imprisonment and individual fines of up to $1 million.

• In addition to the aforementioned charges, Mathis is being charged with four counts of receipt and possession of stolen mail. Walton is being charged with two counts of receipt and possession of stolen mail. Davis is being charged with one count of receipt and possession of stolen mail. They each face up to five years imprisonment and individual fines of up to $250,000 per offense of conviction.

• Mathis is also being charged with one count of manufacturing counterfeited and forged securities. If convicted, she faces up to 10 years imprisonment and up to $250,000 in fines.

Assistant U.S. Attorney Leetra Harris 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 – Four former Shelby County Corrections Deputies have all pled guilty to attempting to smuggle and distribute OxyContin inside a correctional facility. The pleas were announced by Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee.

According to the indictments, the four defendants – Torriano Vaughn, Brian Grammer, Anthony Thomas, and Marcus Green – all 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 posing as associates of the inmates 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," a pill or substance that has 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.

All four defendants have pled guilty to attempted possession of a controlled substance with the intent to distribute.

They each face up to 20 years imprisonment when convicted. Each defendant also faces up to a $1 million fine.

Thomas is scheduled to be sentenced on Friday, October 9th at 9:30 a.m. by Judge John T. Fowlkes Jr.

Green is scheduled to be sentenced on Friday, October 23rd at 11 a.m. by Judge Jon Phipps McCalla.

Grammer is scheduled to be sentenced on Tuesday, November 3rd at 9:30 a.m. by Judge Jon Phipps McCalla.

Vaughn is scheduled to be sentenced on Friday, November 6th, at 9:30 a.m. by Judge Sheryl H. Lipman.

The case was investigated by the Tarnished Badge Task Force. The collective is comprised of: the Federal Bureau of Investigation, Shelby County Sheriff’s Department, and Memphis Police Department.

Assistant U.S. Attorney Brian K. Coleman is prosecuting the case on behalf of the government.

Memphis, TN – A 66-year-old Millington reserve police officer has been indicted on multiple charges for possessing and producing child pornography. The indictment was announced by Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee.

According to the indictment, between July 2013 and July 2015, Rickie Friar created various images and videos of six minor females engaging in sexually explicit conduct. At least one of the minors was under the age of 12 years old at the time.

Over the aforementioned time period, Friar also transported one of the minor females between Tennessee and Oklahoma for the purpose of engaging in sexual activity. Furthermore, he downloaded child pornographic images from the Internet and stored them on his Compaq computer, according to the indictment.

The Shelby County District Attorney's Office has also filed charges alleging Friar had sexual contact with minor females. He has been in state custody since his arrest in July.

Friar has been indicted federally on one count of transporting a minor for criminal sexual activity; 10 counts of production of child pornography; and one count of child pornography possession.

• Friar faces a minimum sentence of 10 years imprisonment if convicted of transporting a minor for criminal sexual activity.

• Friar faces a minimum sentence of 15 years imprisonment for each count of production of child pornography.

• Friar faces up to 20 years imprisonment if convicted of possession of child pornography.

• Friar faces up to $250,000 in fines per offense of conviction.

The case is being 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 U.S. Secret Service.

Assistant U.S. Attorney Debra Ireland is prosecuting the case on behalf of the government.

Anyone who believes they may have information about this case or related activities 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 defendants are considered innocent unless and until proven guilty.

Memphis, TN – A Memphis pastor has been indicted on child pornography possession charges. The indictment was announced by Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee.

According to the indictment, between August 2014 and May 2015, Demarcus Smith coerced a male under the age of 18 to photograph himself engaging in sexually explicit conduct. Smith, 32, asked the minor male to send him sexual images via cellphone on numerous occasions.

Smith is a pastor at Oak Hill Missionary Baptist Church in South Memphis. He’s also a member of the Baptist Ministerial Association.

He has been charged with one count of coercion and solicitation of a minor; one count of production of child pornography; and one count of receipt of child pornography.

• Smith faces a minimum sentence of 10 years imprisonment if convicted of coercion/solicitation of a minor.

• Smith faces a minimum sentence of 15 years imprisonment if convicted of production of child pornography.

• Smith faces up to 20 years imprisonment if convicted of receipt of child pornography

• Smith faces up to $250,000 in fines per offense of conviction.

The case is being investigated by the Memphis Child Exploitation Task Force. The collective is comprised of 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 is prosecuting the case on behalf of the government.

Anyone who believes they may have information about this case or related activities 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 defendants are considered innocent unless and until proven guilty.

Memphis, TN – A married couple pled guilty this week to defrauding the government of more than $160,000 in false tax returns.

According to the indictment, Ahmed Grant and his wife, Lillian Madyun, a former Internal Revenue Services (IRS) employee, used their tax preparation business, Superfast Taxes, to file false 2010 federal income tax returns. Many citizens were victimized during the defendants’ fraudulent scheme.

The defendants had several satellite locations for Superfast Taxes throughout the inner-city at which they employed contract tax preparers. After employees prepared tax return files, the defendants would then review and adjust the files before submitting false claims to the IRS. They utilized an electronic filing identification number to process and file the tax returns.

Several refundable tax credits, such as Schedule C and the American Opportunity Credit, were fraudulently used by the defendants to inflate their clients’ tax returns. Unaware of the defendants’ illicit behavior, the IRS paid more than $160,000 in false credits to Superfast Taxes.

On Thursday, August 13th, both Grant and Madyun pled guilty to conspiracy to commit fraud against the United States.

Both defendants face a maximum sentence of 10 years imprisonment. They also face individual fines of up to $250,000.

They will both be sentenced by Judge Sheryl H. Lipman on November 13, 2015.

The case is being investigated by the IRS.

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

Memphis, TN – A father and two sons were indicted on multiple charges this week for their alleged roles in a scheme that defrauded victims of more than $18 million.

Larry Bates, a former Tennessee state legislator, was CEO of First American Monetary Consultants (FAMC), Inc. A financial company, FAMC engaged in buying, selling and trading precious metals, primarily gold and silver coins. He was also the CEO of Information Radio Network, Inc. (IRN), a broadcast service that provided radio listeners with information and advice on a variety of topics including politics and world economy.

Larry’s son, Charles "Chuck" Bates, was executive vice president and news director for IRN and an economist with FAMC. Larry’s other son, Robert Bates, was an economist with FAMC.

From May 2002 to October 2013, the trio allegedly encouraged customers, many of whom were Christians and elderly individuals, to purchase copious amounts of certain types of gold and silver from FAMC. All of the individuals targeted by the Bates were seeking advice and help from a supposed trusted Christian advisor and/or an alleged reputable Christian financial company, according to the indictment.

The defendants utilized IRN as a means of advertising, promoting, and soliciting the sale or purchase of gold and silver to and from individuals nationwide, according to the indictment. To execute their scheme, the Bates’ told potential customers that they needed to purchase gold and silver to protect themselves from "Mystery Babylon," an alleged forthcoming economic, political and religious downturn.

Those who accepted the Bates’ offers provided payment via mail, wire transfers, or through private and commercial interstate carriers to purchase gold and silver from FAMC. Subsequent to submitting their payments, the customers would receive an invoice and order confirmation via mail, according to the indictment.

After the defendants received money and/or gold and silver from customers, they would partially complete the customers’ orders or fail to fill them altogether. The indictment alleges that the defendants utilized a portion of the embezzled proceeds to fund personal expenses and maintain operation of FAMC and IRN. When contacted by customers who didn’t receive their orders, the defendants would allegedly provide false promises, delay returning calls or emails, or neglect to respond altogether. According to the indictment, this activity continued from weeks up to years.

"As the indictment alleges, the defendants defrauded unsuspecting victims of more than $18 million by promising to purchase gold and silver coins on their behalf," said U.S. Attorney Edward L. Stanton III. "Unfortunately, hundreds of these victims never received the coins they purchased. Instead, their money was used by the defendants to fund lofty salaries and exorbitant lifestyles."

More than 300 people were victimized during the Bates’ scheme. In addition to individuals in West Tennessee, the Bates’ defrauded people in Texas, Alabama, Kansas, Vermont, Oklahoma, Missouri, Florida, Massachusetts, and a multitude of other states.

All three defendants are being charged with multiple counts of mail and wire fraud. If convicted, they each face up to 20 years imprisonment and up to $1 million in fines per count.

The defendants are also being charged with conspiracy to commit mail and wire fraud.

If convicted, they each face up to 20 years imprisonment and up to $1 million in fines.

The case is being investigated by the U.S. Postal Inspection Service and the Federal Bureau of Investigation.

Assistant U.S. Attorneys Larry Laurenzi and David Pritchard are representing the government in this case.

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

Memphis, TN – Eleven people were indicted this week on conspiracy charges for their alleged roles in a methamphetamine distribution ring.

On Wednesday, July 29th, Johnnie Wilborn, Travis Huston, Fred Wilson, Dexter White, Patrice Lee, Brittany Huston, Deontoe Huston, Larry Cassidy Jr., Robert Earl Williams Jr., Phillip Sean Mosley, and Janice White were all indicted by a federal grand jury for conspiracy to possess with the intent to distribute methamphetamine. Wilborn, Travis Huston, Dexter White, Brittany Huston, and Janice White were also indicted for conspiracy to launder drug proceeds.

The Memphis Drug Enforcement Administration (DEA); Shelby County Sheriff’s Office Narcotics Division; Memphis Police Department Organized Crime Unit (OCU); West Memphis Narcotics Division; and the Federal Bureau of Investigation (FBI) conducted the investigation of the defendants.

Agencies who assisted the investigating agencies with arresting the defendants on Wednesday were the 25th Judicial District Drug Task Force; Germantown Police Department; Bartlett Police Department; and the United States Marshals Service.

Search warrants were executed on multiple residences identified during this investigation. During the roundup, officers seized:

• 4 assault rifles

• 1 shotgun

• 4 handguns

Those charged with conspiracy to possess with the intent to distribute more than 500 grams of methamphetamine include: Johnnie Wilborn, Travis Huston, Fred Wilson, Dexter White, and Patrice Lee. If convicted, they each face up to life in prison and up to a $10 million fine.

Those charged with conspiracy to possess with the intent to distribute more than 50 grams of methamphetamine include: Brittany Huston, Carlos Lewis, Deontoe Huston, Larry Cassidy Jr., Robert Earl Williams Jr., and Phillip Sean Mosley. If convicted, they each face up to 40 years imprisonment and up to a $5 million fine.

Wilborn, Travis Huston, Dexter White, Brittany Huston, and Janice White have also been charged with conspiracy to launder drug proceeds. If convicted for the offense, they each face up to 20 years imprisonment and up to a $500,000 fine.

Assistant U.S. Attorney Daniel French is representing the government in these cases.

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

Jackson, TN – A mother and four nurses assigned to care for her now-deceased son have all pled guilty to conspiring to commit health care fraud.

According to the charging documents and plea agreements in the case, Josephine Coach’s son had a tracheotomy and required a ventilator for breathing assistance. The child, who was wheel-chair bound, also had gastrointestinal problems that required frequent monitoring. The child’s doctor ordered 19 hours of daily nursing care for the child. The child received health care through TennCare, the state of Tennessee’s Medicaid program, which provides health care services to qualifying indigent individuals.

Nurses employed with On Call Staffing, Inc. were supposed to provide the 19 hours of daily home health services ordered by the doctor. On Call Staffing was a subcontractor to Functional Independence Home Care, Inc., which contracted with TennCare to provide nursing services to patients who utilized the Medicaid program.

From January 2009 to August 2011, Coach knowingly and intentionally conspired with four of the nurses to defraud TennCare by billing the program for nursing services that were never provided to the child. Specifically, Coach and the nurses reached agreements whereby the nurses would not show up for their appointed shifts but still turn in time sheets as if they had worked. The nurses then split their pay for the shifts with Coach. As a result of the fraud, TennCare paid over $400,000 for nursing services that were never provided to the child.

"The defendants’ scheme of foregoing the medical needs of a severely disabled minor in exchange for financial gain at taxpayer expense is shocking and reprehensible," said U.S. Attorney Edward L. Stanton III. "Each defendant, including the minor’s mother, will now be held accountable at sentencing."

The nurses involved with the scheme who pled guilty include: Falesha Wilson, Carla Surratt, Nakesha Stephens, and Nicole Douglass. Evidence obtained during the investigation indicates that the nurses who made similar arrangements with Coach may have actually worked approximately two out of every seven of their reported shifts.

According to the charging documents and plea agreements:

• Between February and August 2011, each of the four nurses received at least one paycheck in the amount of $1,462.34 for services supposed to have been provided to Coach’s son. The nurses then split the paychecks with Coach.

• Each nurse was assigned to work 9.5-hour shifts with Coach’s son.

• Douglass’ tenure caring for Coach’s son lasted from January 2009 to May 2011. TennCare paid $394 per shift for Douglass. She turned in time sheets for 721 shifts during her assignment.

• Wilson’s tenure caring for Coach’s son lasted from January to June 2011. TennCare paid $394 per shift for Wilson. She turned in time sheets for 643 shifts during her assignment.

• Surratt’s tenure caring for Coach’s son lasted from May to August 2011. TennCare paid $394 per shift for Surratt. She turned in time sheets for 103 shifts during her assignment.

• Stephens’ tenure caring for Coach’s son lasted from June to August 2011. TennCare paid $394 per shift for Stephens. She turned in time sheets for 75 shifts during her assignment.

Coach’s son passed away in April 2015 at age 12.

Douglass, Stephens, and Surratt are slated for sentencing on October 2, 2015.

Wilson is slated for sentencing on October 9, 2015.

Coach is slated for sentencing on October 23, 2015.

All defendants will be sentenced by Chief Judge J. Daniel Breen. They each face up to five years imprisonment and up to a $250,000 fine.

The case is being investigated by the Tennessee Bureau of Investigation.

Assistant U.S. Attorney John Fabian is representing the government in this case.

Memphis, TN – A luxury automobile salesman has been sentenced to 80 months for operating a scheme that defrauded individuals of more than $2 million.

According to the indictment, from October 2010 to September 2013, Michael Brown offered upscale automobiles for sale through his business, Valkry Corporation. However, once he received payments from customers, Brown used the funds for personal benefit and failed to fulfill vehicle orders.

For nearly three years, Brown would partially satisfy order requests, or fail to deliver the vehicle(s) at all, according to the indictment. Brown would use the funds for personal endeavors, as well as travel and business expenses. He also used the funds to purchase additional vehicles, which he advertised to new customers. As a result of his scheme, Brown fraudulently obtained $1,984,803.

One victim of Brown’s scheme over that period is M Super Car, an international luxury automobile dealership based in Macau. In October 2010, M Super Car placed an order with Brown for the purchase of multiple vehicles for $1,268,000, according to the indictment. The dealership made multiple wire transfers from its bank accounts to Valkry Corporation’s First Tennessee accounts to purchase 16 Mercedes-Benz vehicles and a customized Porsche. However, Brown failed to fulfill the company’s order or refund their money for the cars he was unable to deliver.

England-based company KIS Cars, LTD. is another victim of Brown’s scheme. In November 2012, KIS Cars placed an order with Valkry Corporation for four Mercedes-Benz sedans and four Porsche Cayennes. The company paid Valkry Corporation for the orders via two wire transfers, one in the amount of $64,886 and another for $522,404. However, Brown failed to fulfill the orders and only provided a partial refund of $20,000 to KIS Cars.

In August 2013, Leonard Wright negotiated the purchase of a 2014 BMW 650i from Brown for $102,721.57. Wright financed the purchase through Orion Federal Credit Union. Although Brown received a check satisfying his asking price for the BMW, he failed to deliver the car to Wright.

Brown pled guilty to two counts of wire fraud and one count of mail fraud in February 2015. Following his plea, Brown continued his scheme. One of the people he managed to defraud was legendary basketball player Julius "Dr. J" Erving. In February 2015, the former NBA star wired Brown $251,934.13 to purchase a 2015 Rolls Royce Wraith. Nevertheless, Brown failed to fulfill Erving’s order or provide him with a refund.

On Tuesday, July 28th, Brown was sentenced to 80 months by U.S. District Judge S. Thomas Anderson.

The case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney David Pritchard represented the government in this case.

Memphis, TN – A man responsible for executing a federal benefit fraud scheme that cost the government an estimated $400,000 pled guilty to conspiracy charges this week.

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, and then redeemed 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 relative, for full monetary value.

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.

On Tuesday, July 28th, Chism pled guilty to conspiracy to commit SNAP benefit fraud and conspiracy to commit child care benefit fraud. Chism faces a maximum sentence of 10 years and a maximum fine of $500,000.

Chism is scheduled to be sentenced on Friday, October 23, 2015 at 9:30 a.m. by U.S. District Judge John T. Fowlkes Jr.

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.

This case is being prosecuted for the government by Assistant U.S. Attorneys Larry Laurenzi and Debra Ireland.

Jackson, TN - Regional Hospital of Jackson has agreed to pay the United States $510,000 to resolve allegations that it billed Medicare and Medicaid for unnecessary cardiac procedures over an eight-year period.

The hospital agreed to the half-million dollar settlement on Friday, July 10th. According to the allegations, from January 2004 to May 2012, Regional Hospital defrauded Medicare and Medicaid in connection with the placement of unnecessary cardiac stents and other needless cardiac procedures. Stents are mesh tubes placed in coronary arteries to keep the arteries open in the treatment of coronary heart disease. The other related procedures included angioplasty and catheterization.

Medicare is a federally funded and administered health care program serving people aged 65 and older and others with disabilities. Furthermore, Medicaid is a federal program that provides health care services to qualifying indigent individuals. Under federal law, both Medicare and Medicaid reimburse hospitals only for procedures that are medically necessary.

"Billing Medicare for cardiac procedures that are not necessary or appropriate contributes to the soaring costs of health care and harms patients," said Edward L. Stanton III, United States Attorney for the Western District of Tennessee. "Settlements like this protect public funds and safeguard the beneficiaries of federal health care programs."

The allegations resolved by the settlement were raised in a lawsuit filed against the hospital under the qui tam, or whistleblower, provisions of the False Claims Act. The act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. As part of the settlement, the whistleblower, Dr. Wood M. Deming, received a share of the settlement amount.

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

Memphis, TN – A 24-year-old man in Halls, Tennessee has been sentenced to 78 months in prison for possessing and distributing child pornography.

According to a federal indictment, on August 30, 2012, Lindell "Logan" Luck intentionally distributed computer images and video files of minors engaging in sexually explicit conduct. Luck downloaded and shared the images using his ASUS Notebook computer.

According to statements made in court, Memphis Child Exploitation Task Force agents signed into a peer-to-peer file sharing network to identify potential program users who may have been in possession of or sharing child pornography. This file sharing network enabled users to exchange digital music, images, and videos directly without going through central servers. A program user could search for files made available by all other users, browse all files made available by a particular user, and download desired files.

While using the network, agents performed a "browse request" and received a response from an IP address associated with a computer later determined to be at Luck’s residence in Halls, Tennessee, according to court statements. Law enforcement officials discovered that the computer contained multiple files depicting minor children engaged in sexually explicit conduct.

On October 24, 2012, police officers executed a search warrant and seized Luck’s computer. A forensic examination revealed that the device contained visual depictions of minors under the age of 12 engaging in sexually explicit conduct as well as other child pornographic files.

Luck was charged with one count of distribution of child pornography and two counts of possession of child pornography. This week, he was sentenced to 78 months imprisonment and five years of supervised release by Judge Samuel H. Mays.

The case was investigated by the Department of Homeland Security and the Federal Bureau of Investigation. Both agencies are members of the Memphis Child Exploitation Task Force. Assistant U.S. Attorney Leetra Harris prosecuted the case on the government’s behalf.

Memphis, TN – A high-ranking member of a white supremacist gang was indicted this week for possessing multiple firearms while a felon.

On April 4, 2015, Memphis Police officers responded to a domestic violence complaint. Upon arriving at the scene, officers encountered a woman who came running out of an apartment in emotional distress. She informed officers that her boyfriend, 52-year-old Joseph Shields, was armed with a large firearm and had threatened to kill her. She alleged Shields refused to let her leave their apartment, placed a rifle to her forehead, and threatened to pull the trigger.

Vickers informed officers that Shields was still inside the house and armed with a firearm. Officers subsequently drew their weapons and began giving verbal commands into the apartment for Shields to exit and surrender. Shields refused to comply with the officers’ demands, motivating them to dispatch additional law enforcement personnel to the scene. Officers held the door and continued to give loud verbal commands for the suspect to come out before entering the house and searching for Shields. They discovered a loaded 12-gauge shotgun, two rifles, and numerous rounds of ammunition. But Shields was no longer inside the residence.

Customers at a nearby ice cream stand, Jerry’s Sno Cones, advised officers that they witnessed Shields running from the apartment complex. The witnesses pointed the officers in the direction Shields fled. Officers began travelling in the specified direction and located Shields shortly after. They were able to detain him after a brief struggle.

Shields admitted to law enforcement that he is a captain within the Aryan Brotherhood of Texas (ABT). An unaffiliated spin-off of the white supremacist prison gang, Aryan Brotherhood, ABT is a violent, Texas-based crime syndicate responsible for multiple murders, robberies, aggravated assaults, as well as drug trafficking.

In addition to confiscating ammunition, a loaded shotgun and two rifles — one of which had been stolen out of Tipton County — officers located a large black gun safe with an unspecified number of additional firearms in Shields’ apartment.

Shields’ case is being investigated by the Memphis Police Department. Special Assistant U.S. Attorney Dean DeCandia is representing the government in this case.

Shields faces up to 10 years in federal prison and up to $250,000 in fines if convicted.

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

Memphis, TN – Two convicted felons responsible for robbing a Dollar General in Whitehaven have been collectively sentenced to 260 months in prison.

According to facts presented in court, on the evening of November 9, 2013, Johnnie Trenell, 31, and Maurice Harris, 22, entered the Dollar General located at 3909 Elvis Presley Blvd. armed with a Taurus 9mm pistol. Trenell jumped the counter and pointed the silver and black firearm at the cashier and demanded that the employee get on the floor. While Trenell occupied the cashier, Harris demanded another Dollar General employee to open the safe. Unable to do so, the second employee was then ordered to open the cash registers, remove the money in them and place it in a Dollar General bag.

After receiving a robbery in progress call at the Dollar General, Memphis Police Department officers arrived on the scene, according to court statements. Trenell and Harris fled to the back of the store after realizing law enforcement officers were outside the establishment. Shortly after entering the store, officers arrested both defendants and recovered the 9mm pistol they used, as well as $619 in a Dollar General bag. Officers were able to locate Harris’ vehicle, and recovered Harris’ fingerprints from items on the counter. One of the robbery victims also identified Trenell as the gunman.

On May 19th, District Court Judge S. Thomas Anderson sentenced Harris to 120 months in federal prison and three years of supervised release. Harris pled guilty to the Hobbs Act, a law that makes it a federal crime to commit a robbery that interferes with interstate commerce. Harris also pled guilty to being a felon in possession of a firearm.

Today, Trenell was sentenced to 140 months in federal prison and three years of supervised release by Judge Anderson. He also pled guilty to the Hobbs Act and being a felon in possession of a firearm.

This case was investigated by the FBI’s Memphis Safe Streets Task Force. Assistant U.S. Attorney Brian Coleman prosecuted the case on the government’s behalf.

Memphis, TN – A 32-year-old Canadian man who maintained a lucrative scheme that defrauded FedEx of over half-a-million dollars has pled guilty to mail fraud.

According to statements made in court, between October 2009 and August 2013, Andre Grizzle, through his Pittsburgh, Pennsylvania-based shipping company, LDM International, participated in a scheme to create fraudulent FedEx customer accounts in the names and addresses of legitimate businesses without their consent. FedEx, a private and commercial interstate carrier, then made shipments on these fraudulent accounts.

FedEx allows an individual or business to create a "shipper" account to ship items. The established account is assigned a unique account number, and the account is billed for the shipping services it’s provided. Aware of this, Grizzle utilized U-Ship, an online marketplace for shipping services, to solicit FedEx customers to LDM International. U-Ship provides shippers with the comfort of uploading a listing, indicating what type of freight they have, where it needs to be picked up and delivered, and the size and weight of the shipment. Shipping companies who utilize U-Ship can bid on the listed jobs. The shipper selects the bidder it’s most comfortable with.

Through LDM International, Grizzle placed bids for contracts on U-Ship, offering to ship merchandise at favorable rates. According to the indictment, after receiving the shipping contract, Grizzle would utilize FedEx accounts, which were opened under the name of a legitimate business or a nonexistent business, to ship the merchandise.

As the indictment states, Grizzle, or another party to the scheme, would call FedEx’s customer service center pretending to be a representative of an established business. He would then fraudulently create a new shipping account under the name of the business, and subsequently receive a new account number. Weekly or monthly invoice billing was set up for the account.

Grizzle would use these new shipping accounts to ship packages throughout the country on behalf of himself or customers who contracted with LDM International. He would incur large bills on these accounts and provide fraudulent bank account numbers and/or routing numbers to pay the shipping invoices, according to the indictment.

Unaware that the transaction was fraudulent, FedEx would then send the payment information to its financial institution, and within a few days the payments were charged back to FedEx as fraudulent, according to the indictment. Due to unknowingly providing shipping services under fraudulent accounts, the corporation suffered more than $600,000 in losses.

Today, Grizzle pled guilty to one count of mail fraud. If convicted, he faces up to 20 years in prison and up to a $250,000 fine.

Grizzle is slated to be sentenced on September 24 at 9 a.m. by Judge Sheryl H. Lipman.

This case was investigated by the U.S. Secret Service. Assistant U.S. Attorney David Pritchard is prosecuting the case for the government.

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Jackson, TN – A nurse practitioner has been indicted for forging the signature of a physician on nearly 150 treatment forms, causing Medicare and TennCare to disburse more than $330,000 in payments for unauthorized services.

According to the indictment, from around April 23, 2010 to about June 17, 2014, John Michael Briley unlawfully utilized the identification of a local physician to authorize home health care services for more than 40 individuals. Briley used the physician’s name to order home health care services for Medicare and TennCare recipients 146 times, without the physician’s consent.

Medicare is a federally funded and administered health care program serving people aged 65 and older and others with disabilities. Furthermore, Medicaid is a federal insurance program that provides services to qualifying indigent persons. In Tennessee, the Medicaid program is funded by the federal government and the State of Tennessee, and is referred to as TennCare.

According to the indictment, before Medicare or TennCare can fund home health care services, "Home Health Certifications and Plans of Treatment" forms must be completed. The forms require the signature of a physician as a condition of payment.

Briley is a nurse practitioner, a position not categorized as a physician under federal regulations. Therefore, he forged the signature of a local physician to access home health care services from Medicare and TennCare.

Briley is employed at a private medical practice, Primary Care Specialists-South.

"As the indictment alleges, Briley schemed to defraud the government of health care funding designated for elderly, disabled, and underprivileged citizens," said U.S.

Attorney Edward Stanton III. "We will remain steadfast in working with our law enforcement partners to bring to justice those who seek to cheat the health care system for illegal gain."

"This indictment is part of a national health care fraud takedown which involves cases across the country," said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services — Office of Inspector General in Atlanta. "The combined effort should assure tax payers that those that steal federal health care dollars will be held accountable for their actions."

Briley has been charged with one count of aggravated identity theft and 146 counts of making false statements in a healthcare-related matter

If convicted, Briley faces a mandatory sentence of two years imprisonment and up to a $250,000 fine for aggravated identity theft. He also faces up to five years imprisonment for each of the 146 counts of making false statements, as well as up to a $250,000 fine.

The case is being investigated by the Department of Health and Human Services — Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Matt Wilson is prosecuting the government’s case.

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 – Nine people have been indicted for their roles in two separate drug rings responsible for distributing large quantities of methamphetamine, oxycodone, and marijuana in West Tennessee.

On Thursday, June 11, Taquita James, Tavious Jones, Martavious Taylor, Marcus Moore, Brandon Heard, and Fredrick Burton were all indicted by a federal grand jury for conspiracy to possess with the intent to distribute oxycodone. Taylor, Moore, Heard, and Burton were also indicted for conspiracy to possess with the intent to distribute less than 50 kilograms of marijuana.

On the same day, in a separate indictment, Antonio Montgomery, Dylon Chambers, and Kirby Jackson were charged with conspiracy to possess with the intent to distribute methamphetamine.

The Memphis Drug Enforcement Administration (DEA) Task Force; Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Multi-Agency Gang Unit (MGU); United States Postal Inspection Service; and the Memphis Police Department Organized Crime Unit (OCU) conducted an investigation of the defendants.

Agencies who assisted with arresting the defendants on Wednesday, June 17, were the Memphis Police Department; Shelby County Sheriff’s Office; Bartlett Police Department; Collierville Police Department; Germantown Police Department; Tipton County Sheriff’s Office; United States Marshals Service; ATF; and the United States Postal Inspection Service.

Search warrants were executed on 10 residences identified during this investigation. During the round-up, officers seized:

• Approximately $30,000

• 1 SKS rifle, 2 handguns

• 1 pound of methamphetamine

• 2 kilograms of cocaine

If convicted for conspiracy to possess with the intent to distribute oxycodone, James, Jones, Moore, Burton, Heard and Taylor face up to 20 years imprisonment. They also face a fine of up to $1 million.

If convicted for conspiracy to possess with the intent to distribute less than 50 kilograms of marijuana, Taylor, Moore, and Burton face up to five years imprisonment and up to a $250,000 fine.

If convicted for conspiracy to possess with the intent to distribute methamphetamine, Montgomery, Chambers, and Jackson face up to 10 years imprisonment and a fine of up to $500,000.

Defendants Taquita James and Fredrick Burton have been released on bond. The remaining defendants will appear before Magistrate Judge Charmiane Claxton on Monday, June 22, for detention hearings.

Assistant U.S. Attorneys Reagan Taylor and Michelle Kimbril-Parks are representing the government in these cases.

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

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Memphis, TN – A 46-year-old Millington man with multiple felony convictions has received 200 months imprisonment for threatening to kill a repossession agent with a firearm.

On December 27th, 2012, Kendall Joy placed a loaded Military-style .44 Magnum to the head of Derrick Jones as he attempted to repo Joy’s girlfriend’s vehicle. Jones, along with two colleagues, Kenneth Minor and Jerickan McCracklin, were at Millington Oaks Apartments to repossess a 2005 GMC Envoy from Jasmine Warren when the incident occurred.

According to trial testimony, Jones was in the process of loading the vehicle onto the bed of his wrecker when Joy exited his apartment with a woman, demanding Jones to release the vehicle. Joy told the accompanying woman to get his gun. When she returned with the firearm, Joy grabbed and cocked it, and pointed it at the victims. "Drop my vehicle or I’ll kill you," he reportedly stated. Concerned for their safety, Minor and McCracklin fled the area on foot, but Jones remained at the location with his wrecker. Joy pointed the firearm at Jones’ head and said, "I promise I will kill you right now, if you don’t let this truck go." Joy then ordered Jones not to move while he disconnected the vehicle himself. After the woman with Joy got inside of the vehicle and drove away, Joy retreated into his apartment and barricaded himself inside.

Officers were dispatched to Millington Oaks and, upon arrival, ordered Joy to either allow access into his home or exit the residence. Refusing to comply with their requests, officers forcefully entered Joy’s apartment and detained him at gunpoint.While inside, law enforcement discovered three small girls hiding in a bedroom. The little girls advised officers that multiple firearms were located throughout the residence. After obtaining a state search warrant, the officers were able to seize the firearm Joy used to threaten Jones, along with additional guns, including an AK-47-styled assault rifle, .25 caliber pistol, 12-gauge shotgun, as well as a stolen 9mm pistol. High-capacity magazines for the assault rifle and 9mm were also seized during the search, along with an assortment of ammunition for the 12-guage, .44 Magnum, and .25 caliber.

Joy has an extensive criminal history. Between 1987 and 2011, he was convicted of criminal offenses 34 times.

Charged with five counts of being a convicted felon in possession of a firearm, today Joy was sentenced to 200 months and five years of supervised release by Judge S. Thomas Anderson.

This case was investigated by Alcohol, Tobacco and Firearms (ATF) and the Millington Police Department. Assistant U.S. Attorneys David Biggers and Damon Griffin represented the government in this case.

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Memphis, TN – Two Memphians have pled guilty to partaking in a federal benefit fraud scheme that cost the government an estimated $3 million.

Remark Chism, 35, and Erica Pitchford, 36, both face prison time for their roles in defrauding two public assistance programs: Supplemental Nutrition Assistance Program (SNAP) benefits and Child Care Certificate Program.

From October 2011 to December 2013, Chism, with occasional assistance from Pitchford, recruited multiple SNAP recipients willing to sell their allotted benefits for amounts less than face value. The two subsequently redeemed the benefits 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 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.

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. He faces a maximum sentence of 15 years and a maximum fine of $750,000.

Pitchford pled guilty to one count of conspiracy to commit SNAP benefit fraud. She faces a maximum sentence of five years and a maximum fine of $250,000.

Chism is scheduled to be sentenced on September 24 at 1:30 p.m. by Judge Samuel H. Mays.

Pitchford is scheduled to be sentenced September 25 at 9 a.m. by Judge Samuel H. Mays.

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. This case is being prosecuted for the government by Assistant U.S. Attorneys Larry Laurenzi and Debra Ireland.

Memphis, TN - A former government sales representative at FedEx Corporation has pled guilty to defrauding the company of nearly half-a-million dollars during a two-year scheme.

Between 2009 and 2011, Anthony Caruso, 48, used his New Jersey-based shipping and logistics company, CSA Group, to execute a re-billing fraud. Re-billing fraud occurs when a package shipped under a particular FedEx account number is transferred to a different account that may have more favorable terms and conditions, according to the indictment.

CSA Group had negotiated a discount shipping rate with FedEx — a benefit the corporation typically provided to customers that shipped large volumes of materials. Instead of using the CSA Group account rate to provide shipping services, Caruso would re-bill his customers’ packages. He was able to execute his scheme by illegally moving the packages from his account to accounts that belonged to the U.S. Department of Defense. Like CSA Group, the Department of Defense had a FedEx account. But due to it shipping at a significantly higher volume, the Department of Defense, along with the federal government sub-accounts linked to it, received a larger discount for shipments than CSA Group.

Caruso gave his customers a shipping discount through CSA Group, but then re-billed their packages to dormant Department of Defense sub-accounts to take advantage of the larger discount rates. Caruso also changed the contact information for the government accounts, so that all invoices would be sent to him instead of the Department of Defense.

By doing so, he was able to keep the financial difference between the discount he offered his customers and the government discount he unlawfully accessed. The government estimated the loss to FedEx at between $200,000 and $400,000.

Wednesday afternoon, Caruso pled guilty to one count of conspiracy to commit wire fraud, one count of wire fraud, and one count of access device fraud. He faces a maximum sentence of up to 20 years in prison on each of the wire fraud counts and 10 years on the access device fraud count. Caruso also faces fines of up to $750,000 and a three-year term of supervised release.

Caruso is scheduled to be sentenced Friday, August 28, 2015, at 9:30am before Judge Sheryl H. Lipman.

The case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Deb Ireland is representing the government in this case.

Memphis, TN – A 51-year-old man has been sentenced to 10 years imprisonment for downloading child pornography at an East Memphis Best Buy.

Between September 3, 2012 and September 10, 2012, John Nesler went into the Best Buy at 5821 Poplar Ave. to download and view lewd images of female minors. He used two Asus 10-inch tablets and a Samsung Galaxy Note 10-inch tablet that were on display to acquire the images. He then took pictures of the pornographic images with his cellphone.

On September 10, 2012, a Best Buy sales associate witnessed Nesler downloading and viewing inappropriate pictures of female minors and alerted store managers. The managers subsequently contacted the Memphis Police Department and reported a suspicious person complaint. Nesler was still in the store when officers arrived to the establishment. After approaching Nesler and obtaining his identification, officers discovered he had a prior conviction in 2007 for downloading and viewing child pornography. He had been sentenced to five years imprisonment and 10 years supervised release for the offense. Nesler was on probation for the previous crime at the time.

Officers arrested Nesler and seized his cellphone as well as the Best Buy tablets he had utilized. A forensic review of Nesler’s phone revealed that he had taken approximately 114 images of female minors that were sexually suggestive between September 3, 2012 and September 10, 2012. A review of the Best Buy tablets revealed he had made Internet searches related to child pornography.

Tuesday afternoon, Nesler was sentenced to 10 years imprisonment by Judge S. Thomas Anderson for his unlawful acts. He was also ordered to be on supervised release for the remainder of his life.

The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Larry Laurenzi represented the government in the case.

Memphis, TN – A Cordova man convicted of assault with intent to murder four soldiers at the Millington Army National Guard Recruiting Center has been sentenced to 50 years in federal prison.

On October 24, 2013, Amos Patton, 43, was directed by his commanders to come to the Tennessee Army National Guard Recruiting Center at 5650 Attu, Millington, TN. During the meeting, Patton was notified that he was being relieved of duty, recommended for reduction in rank, and recommended for separation from the active guard reserve because of misconduct.

Following the meeting, Patton was directed to return government equipment believed to be in his government vehicle. When he returned from the car, Patton had in his possession a "fanny pack" containing a loaded 9mm semiautomatic Glock pistol and 50 additional rounds of ammunition. When Patton attempted to pull the pistol from the pack, one of the Tennessee Army National Guardsmen yelled a warning.

At that point, Command Sergeant Major Christopher Crawford and Major William Crawford attempted to subdue Patton. Patton managed to fire his pistol six times, striking three Tennessee Army National Guard personnel in his chain of command. These individuals included Major William Crawford, Sergeant Major Ricky McKenzie, and Lieutenant Colonel Hunter Belcher. Although Patton pointed the pistol at Command Sergeant Major Christopher Crawford, no rounds struck him. Patton then ran from the building, but was later caught by several soldiers and held until Millington Police Department officers arrived and arrested him.

Today, U.S. District Judge John T. Fowlkes sentenced Patton to a total of 50 years: 40 years for four counts of assault with intent to commit murder and 10 years for discharging a firearm during a federal crime of violence. He was also ordered to serve five years of supervised release post-incarceration.

"Patton’s 50-year prison sentence is a stark example of the consequences that come from committing violent crimes in the jurisdiction of the federal government," said U.S. Attorney Edward Stanton III. "He will now have decades in prison to regret the unspeakable acts he perpetrated upon his fellow soldiers."

This case was investigated by the Memphis Division of the Federal Bureau of Investigation and Naval Criminal Investigative Service. Assistant U.S. Attorneys Fred Godwin and Mark Erskine represented the government in the case.

Memphis, TN – A 34-year-old Memphis woman has been sentenced to nearly six years in prison for access device fraud and identity theft.

At different times between December 1, 2011 and February 1, 2012, Kavecia Simon, while employed in the payroll department of Fred’s Department Store, illegally obtained the names, social security numbers and other personal information of colleagues, according to an indictment and facts discussed in court.

After obtaining the personal information of various coworkers, she would access Fred’s computer system and use the stolen information to order and route Fred’s pay cards. The pay cards were solely for reimbursing Fred’s employees for overtime and company expenses. However, Simon used them for personal benefit.

Further investigation revealed that Simon used additional victims’ information to acquire credit accounts and rent apartments. Altogether, Simon fraudulently obtained over $20,000 during her scheme.

In June 2014, Simon pled guilty, but she failed to appear for her sentencing that October. While in fugitive status, she committed additional acts of identity theft. In March 2015, she was apprehended in Desoto County, Mississippi.

Judge Sheryl H. Lipman sentenced Simon to 70 months in prison on Friday, May 22nd.

The case was investigated by the United States Secret Service and Memphis Police Department Economic Crimes Unit. Assistant U.S. Attorney Stephen Hall prosecuted the case on behalf of the government.

Memphis, TN – A former Deputy Court Clerk pled guilty Thursday to embezzling more than $24,000 from the City of Memphis during a year-long scheme.

According to the indictment, from December 1, 2013 to December 1, 2014, Tammy Brooks-Carpenter, a Deputy Court Clerk at the time, voided 248 payments made by customers to the City Court Clerk’s office for traffic fines. By doing so, she was able to steal $24,011.50 of the approximate $43,230.50 paid to the government over that period.

Brooks-Carpenter’s illegal actions placed her in violation of Title 18, United States Code, Section 666(a)(1)(A), which makes it a crime to embezzle money from a local government entity that receives in excess of $10,000 of federal assistance during a 12-month period.

During Brooks-Carpenter’s employment at the City Court Clerk’s Office, her duties included accepting payments from customers who were issued motor vehicle citations by the City of Memphis. Brooks-Carpenter was required to enter all transactions into the Electronic Ticket Information System (ETIMS), which recorded the payments. But instead of submitting full payments to the ETIMS System, she voided them and entered in smaller amounts. The remaining funding would then be converted for Brooks-Carpenter’s personal use.

As a result of Brooks-Carpenter not entering full payments, customers who paid their traffic tickets would receive a "Blue Letter," essentially a written message sent out by the City of Memphis to individuals who haven’t paid a fine in the designated timeframe.

Brooks-Carpenter faces up to 10 years in prison and a fine of up to $250,000 when sentenced.

U.S. District Judge John T. Fowlkes, Jr., who presided over the court, set sentencing for August 21, 2015 at 10 a.m. Assistant U.S. Attorney Brian K. Coleman is representing the government in this case.

The Federal Bureau of Investigation, Memphis Police Department, and the Tarnished Badge Task Force investigated this case.

Jackson, TN - Jackson-Madison County General Hospital has paid the United States $1,328,465 to resolve allegations that it billed Medicare and Medicaid in connection with the placement of unnecessary cardiac stents and other unnecessary cardiac procedures.

Cardiac stents are mesh tubes placed in coronary arteries to keep the arteries open in the treatment of coronary heart disease. The other related procedures include angioplasty, catheterization, and ultrasound imaging.

Under federal law, Medicare and Medicaid reimburse hospitals only for procedures that are medically necessary. The settlement with Jackson-Madison County General Hospital resolved claims that it billed Medicare and Medicaid for these unnecessary procedures performed from January 2004 through December 2011.

"Billing Medicare for cardiac procedures that are not necessary or appropriate contributes to the soaring costs of health care and harms patients," said Edward L. Stanton III, United States Attorney for the Western District of Tennessee. "Settlements like this protect public funds and safeguard the beneficiaries of federal health care programs."

The allegations resolved by the settlement were raised in a lawsuit filed against the hospital under the qui tam, or whistleblower, provisions of the False Claims Act. The act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. As part of the settlement, the whistleblower, Dr. Wood D. Deming, received a share of the settlement amount.

The case is captioned United States ex rel. Wood D. Deming v. Jackson-Madison County General Hosp., et al., Case No. 07-1116-SHL (W.D. Tenn.) The claims settled by this agreement are allegations only, and there has been no determination of liability.

Memphis, TN – Joseph De Melo, Sr., a 59-year-old resident of New Orleans, LA, was sentenced yesterday to 15 months in federal prison for illicitly distributing anabolic steroids and intentionally misbranding a dietary supplement that secretly contained erectile dysfunction drugs.

De Melo owned Rezultz Distribution LLC, a supplement retail store located in Carrollton, Texas. He used the establishment to sell purported dietary supplements throughout the United States, including the Western District of Tennessee.

In September 2012, De Melo began conspiring with individuals to distribute pills of products containing anabolic steroids, which are Schedule III controlled substances. By the time De Mello’s illegal endeavors ended in September 2013, approximately 40,000 pills had been distributed nationwide.

Over the aforementioned time period, De Melo also distributed a purported dietary supplement called "Vertical," which contained unlisted erectile dysfunction drugs; false and misleading ingredients were listed on the drug’s labeling.

De Melo managed to obtain over $650,000 in proceeds from his scheme, which he deposited into various financial accounts. In addition to his sentence, De Melo has agreed to forfeit the proceeds made from his illicit pill distribution.

De Melo was sentenced by U.S. District Judge S. Thomas Anderson. There is no parole offered in the federal prison system.

The case was investigated by the Food and Drug Administration Office of Criminal Investigation. Assistant U.S. Attorneys Tony R. Arvin, Christopher E. Cotten, and Damon K. Griffin represented the government in this case.

Memphis, TN – A 46-year-old Germantown man was indicted this week on tax evasion charges for failing to file and pay more than $500,000 in income tax returns.

According to the indictment, John Ballard, a former securities/investment broker, failed to file and pay income tax returns from 2000 to 2008. Ballard’s delinquency caused him to owe $553,627.28 in back taxes. This amount, however, doesn’t include penalty charges and accrued interest.

Ballard was able to avoid satisfying his tax obligations by falsely claiming to the Internal Revenue Service (IRS) that he was unemployed and unable to find employment.

Despite owing the government, the indictment alleges Ballard was paid approximately $522,140.79 in 2009 alone from his then employer NFP Securities.

Ballard faces up to five years in prison if convicted.

The case was investigated by IRS-Criminal Investigation. The government’s case is being prosecuted by Assistant U.S. Attorney John Fabian.

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 21-year-old former U.S. Marine Corps (USMC) reservist was indicted by a federal grand jury this week on theft of government property charges for stealing and selling assault-style training rifles, ammunition, and body armor. The indictment also alleges that the defendant used two government vehicles in an unauthorized manner.

According to the indictment, in January 2014, Armando Jaime Vazquez, Jr., of Memphis, removed an $89,000 Military-issued Hummer and $150,000 Tractor, Rubber Tired, Articulated Steering, Multipurpose Vehicle (also known as a "TRAM") from the USMC Reserve Center in Memphis.

The following month, Vazquez sold more than $4,000 worth of stolen USMC equipment to an individual. The items he unlawfully sold in February include: a Marine Corps issued Improved Load Bearing Equipment (ILBE) pack; desert tan body armor; ammunition magazines for M-16 style rifles; a Quiet Pro communications headset; and a ballistic helmet with camouflage cover.

Vazquez sold additional stolen equipment to an individual in early March, which valued at over $20,000. The stolen items included: body armor; 2 Beretta M9 inert training aids; ammunition magazines for M-16 style rifles; a Bushmaster Blue Fire M4; and a Bushmaster Blue Fire M-16 A4 with an accompanying magazine.

Vazquez faces a maximum sentence of 10 years in federal prison if convicted. He also faces up to a $250,000 fine.

The case was investigated by Naval Criminal Investigative Services and the FBI Safe Streets Task Force. The government’s case is being prosecuted by Assistant U.S. Attorney Kasey Weiland.

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

Memphis, TN – Sixteen members and associates of a violent, drug trafficking street gang were recently indicted on federal drug charges.

This morning members of the Memphis Drug Enforcement Administration Task Force arrested nine of the defendants named in the indictment. Assisting the task force in making the arrests were officers from the Memphis Police Department’s Organized Crime Unit, the Narcotics Unit from the Shelby County Sheriff’s Office, the Bartlett Police Department, the Collierville Police Department, the Germantown Police Department, the Tennessee Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

The indictment and arrests are the result of an extensive investigation conducted by federal, state, and local law enforcement officials on the 7th Street Murda Squad, a criminal organization comprised of various gangs, including members of the Gangster Disciples and Vice Lords.

According to the indictment, the investigation of the 7th Street Murda Squad began in late 2012. During the investigation, officials were able to determine that members and associates of the gang were distributing large quantities of narcotics, primarily cocaine and methamphetamine, throughout the Western District of Tennessee.

Nine Defendants Arrested:

David Lenard Matlock, 32, Memphis
Joe Jones, 36, Memphis
Alvin Lewis, 41, Memphis
Carbin Junior Bullard, 55, Memphis
Albert Demarcus Calhoun, 23, Memphis
Marquice Bell, 28, Blytheville, AR
Christopher Adas Nelson III, 42, (In State Custody)
Roderick McNary, 38, Memphis
Charles Eugene Seaborn, 38, Memphis

7 At-Large Defendants:

Tavious Swift, 35, Memphis
Ronnie Kenneth Malone, 45, Memphis
Larry Hill, 45, Memphis
Antonio Anderson, 29, Memphis
Cal Griffin, 39, Memphis
Eric Grove, 38, Memphis
Markeith DeWayne McDaniel, 35, Memphis

Five firearms were also seized during the early morning round-up: an AK-47; two 12-guage shotguns; .44 caliber revolver; and 9mm Ruger.

Nine of the defendants face a sentence of up to life in federal prison if convicted: Matlock, Jones, Jackson, Swift, Malone, Hill, Anderson, and Bullard. Another five defendants face a sentence of up to 40 years if convicted: Bell, Grove, Calhoun, McDaniel, and Nelson.

The case was investigated by the Memphis DEA Task Force. Assistant U.S. Attorney Daniel French is representing the government in this case.

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

Memphis, TN – An Egyptian citizen was arrested Thursday evening for his alleged role in defrauding a U.S. foreign aid program, which resulted in the distribution of defective water pumps by a Collierville establishment to the Egyptian Water Authority. The illegal acts accounted for more than $500,000 in fraudulent sales.

Mustafa El Shehaly, 55, of Cairo, Egypt, was apprehended outside Chicago O’Hare International Airport for his alleged role in a conspiracy to commit wire fraud. In December 2011, an indictment was filed in the Western District of Tennessee, alleging that El Shehaly conspired with American Marsh Pumps, Inc. (AMP), a Tennessee corporation headquartered in Collierville, to make false statements to a government agency, costing U.S. taxpayers $536,750.

According to the indictment, the conspirators violated several regulations established by the United States Agency for International Development (USAID) for its Commodity Import Program (CIP), an initiative that was designed to provide economic stimulus in the U.S. and Egypt. The program was responsible for financing the purchase of the water pumps.

To utilize the program, companies were required to select industrial water pumps that were tested and solely manufactured in the United States. However, the water pumps distributed by AMP were not only defective, they were manufactured in China. The defendants made the fraudulent misrepresentation that the water pumps were of U.S. source and origin.

Under the USAID CIP guidelines, potential beneficiaries also had to consider offers from three different companies before making a selection. El Shehaly, however, presented

USAID with an actual bid from AMP, along with fraudulent bids from two additional companies. The pre-arranging of the bidding process guaranteed that AMP would be selected to provide industrial water pumps to the Egyptian Water Authority.

After arriving in Chicago, IL, from Cairo Thursday, El Shehaly was apprehended by agents from USAID’s Office of Inspector General (OIG).

U.S. Customs and Border Protection, along with Homeland Security Investigations assisted with the arrest.

El Shehaly faces up to 20 years in federal prison if convicted. His arrest culminates more than six years of investigation, planning, and coordination by the USAID OIG, U.S. Attorney’s Office for the Western District of Tennessee, Department of Justice, Department of Homeland Security, and Department of State.

Assistant United States Attorney Christopher E. Cotten is representing the government in this case.

 

Memphis, TN – A 26-year-old Cordova man was sentenced to 57 months in federal prison yesterday for filing false income tax returns that garnered over $161,000 in refunds.

Between August 2011 and April 2013, Jeremy Tate obtained the names, birth dates, and Social Security numbers of numerous individuals without their knowledge or consent, and then used the information to file over 120 false tax returns. This resulted in Tate claiming over $161,000 in refunds.

According to the indictment and facts discussed in court, Tate recruited others to open bank accounts and directed the false tax return refunds to be electronically deposited into those accounts.

"Tate’s actions were an affront to the tens of millions of honest citizens who play by the rules and file their taxes in a timely and accurate manner," said U.S. Attorney Edward Stanton III. "Anyone who participates in such a scheme should understand there is a price to be paid and that we and our law enforcement partners will collect in full."

In addition to serving 57 months in prison, Tate will be required to pay $161,021.48 in restitution.

"Investigating refund fraud and identity theft is a priority for IRS-Criminal Investigation," said Christopher A. Henry, Special Agent in Charge for the IRS-Criminal Investigative Division. "Stealing identities and filing false tax returns is a serious crime that hurts innocent taxpayers. Today’s sentencing should serve as a strong warning to those who are considering similar conduct. Law enforcement is serious about

investigating these crimes and holding those who would defraud the government accountable."

The sentencing was conducted by U.S. District Judge S. Thomas Anderson. The case was investigated by the United States Secret Service and IRS-Criminal Investigative Division. Assistant United States Attorney Stephen Hall prosecuted the case on behalf of the government.

 

Memphis, TN – U.S. Attorney Edward L. Stanton III has appointed Louis Goggans as the Community Outreach Specialist and Public Information Officer for the U.S. Attorney’s Office, Western District of Tennessee.

Prior to joining the U.S. Attorney’s Office, Goggans was an award-winning reporter for an alternative weekly newspaper, The Memphis Flyer. While at the publication, he covered an array of topics including crime, health, education, nonprofit agencies, paternity fraud, poverty, and music.

Goggans won awards in the investigative reporting category at the 64th Annual Green Eyeshade Awards (the nation's oldest regional journalism contest) for his feature articles on the unsolved murder of former NBA star Lorenzen Wright and human trafficking in the Mid-South.

Goggans is a native of Chattanooga, TN, and graduate of the University of Memphis (U of M). He received a Bachelor of Arts in Journalism. While enrolled, he wrote for the university’s student newspaper, The Daily Helmsman. He is also the former president of the U of M’s Association for Black Journalists.

In making the appointment, U.S. Attorney Stanton said: "We are very pleased to have Louis join the U.S. Attorney's Office. He is a highly talented and well-respected journalist who has a distinguished record of community engagement through innovative media outreach efforts."

Memphis, TN – Law enforcement officials responsible for the apprehension, prosecution and conviction of former drug kingpin Craig Petties were recognized with awards during the Organized Crime Drug Enforcement Task Force’s (OCDETF) Southeast Region recent annual meeting.

The award presentation took place at the Shelby County Sheriff’s Office Homeland Security Building.

U.S. Attorney Edward Stanton III, along with OCDETF Deputy Director Thomas Padden of Washington, D.C., presented the officials with individual awards for their time-intensive contributions to Operation Petticoat, an extensive investigation that resulted in the conviction of Petties and 40-plus members of his lucrative and violent drug trafficking organization.

Representatives from federal, state, and local law enforcement agencies such as the U.S. Marshals Service, Drug Enforcement Administration, Federal Bureau of Investigation, Memphis Police Department, and U.S. Attorney’s Office were among those receiving awards during the ceremony.

On August 22, 2013, Petties received nine concurrent life sentences in federal prison for charges including murder in aid of racketeering, conspiracy to commit murder for hire, and money laundering.

At the height of his reign, Petties, a native of South Memphis, was responsible for the distribution of hundreds of kilograms of cocaine throughout the southern United States. He was prosecuted by the U.S. Attorney’s Office in the Western District of Tennessee. To date, it’s the largest drug trafficking prosecution in the state.

OCDETF is a Department of Justice Program that seeks to diminish the availability of drugs by disrupting and dismantling major drug trafficking organizations, money laundering organizations and related criminal enterprises.

Individuals pictured in photo (L to R): Mike Smith - OCDETF; Abe Collins – (Retired) DEA; Scott Leary - U.S. Attorney’s Office; Stephanie Creasy – U.S. Marshals Service; Bob Reich – (Retired) FBI; Lasundra Price – MPD; Therman Richardson – MPD; Frederic Winston – Alcohol, Tobacco, and Firearms; Chris Henry – Internal Revenue Service; Thomas Padden – OCDETF; Edward Stanton – U.S. Attorney’s Office; Jerry Kitchen – U.S. Attorney’s Office.

 

Jackson, TN – A task force made up of special agents with the Drug Enforcement Administration, Federal Bureau of Investigation, U.S. Marshals Service, Department of Homeland Security, Immigration Customs and Enforcement, Bureau of Alcohol, Tobacco, Firearms and Explosives, and state and law enforcement officials with the Tennessee Bureau of Investigation, the Tennessee Highway Patrol, West Tennessee Drug Task Force, Jackson Madison-County Metro-Narcotics, Madison County Sheriff’s Department, and the Jackson Police Department arrested seven people in an early morning round-up today on federal drug trafficking charges.

This morning’s arrests are the result of a year-long investigation in which law enforcement officials have seized kilograms of cocaine and/or crack cocaine.

A federal grand jury in Jackson, TN returned the indictments on March 23, 2015, but they remained under seal until today’s arrests. Each indictment contained counts alleging violations of the Controlled Substances Act.

The suspects arrested during the operation were:

•Omar Ramirez,45, of Madison County

•Lee Patterson, 43, of Madison County

•Patrick Williamson, 40, of Madison County

•Santayan Deon Mayberry, 38, of Madison County

•Sharn Milan, 35, of Madison County (already in federal custody)

•Charles Miller, 40, of Gibson County

•Armondo Orta, 47, of Madison County

The charges in the indictment stem from the defendants’ participation in a conspiracy to distribute and to possess with intent to distribute cocaine and crack cocaine.

Law enforcement officials seized over three kilos of cocaine, six ounces of crack cocaine, over $180,000 in cash and 10 vehicles in this morning’s round-up.

The case was investigated by members of the DEA Jackson Post of Duty, Tennessee Bureau of Investigation, Tennessee Highway Patrol, Jackson Madison County Metro Narcotics Unit, Madison County Sheriff’s Office, Jackson Police Department and the West Tennessee Drug Task Force. The government’s case is being prosecuted by Assistant United States Attorney Beth Boswell.

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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 Covington man was found guilty today for being a felon in possession of a .40 caliber Ruger and 50 rounds of ammunition.

Albert Dajaun White, 37, of Covington, TN, was convicted this morning by a federal jury on one count of being a felon in possession of a firearm and one count of being a felon in possession of ammunition.

The evidence presented during a three-day trial showed that on October 7, 2013, investigators with the Tipton County Sheriff’s Office executed a search warrant at White’s residence. During the search, the officers recovered a .40 caliber Ruger, 50 rounds of ammunition, a pound of marijuana, 23 pit bulls and $32,240 dollars. The officers also recovered a $100 bill that was used in an undercover drug purchase two days prior to the search. White was arrested and indicted by a federal grand jury on January 30, 2014.

"The jury’s verdict underscores our commitment to work with our law enforcement partners in combating violent crime in Western Tennessee," said United States Attorney Edward Stanton III. "We will continue to utilize every available resource to make our communities a safer place to live."

"This is yet another example of the continued partnership between my office and the United States Attorney’s Office fight to combat gun and drug crimes in the Western District of Tennessee," said District Attorney General Mike Dunavant.

As a result of today’s guilty verdict, White faces a sentence of up to 10 years in federal prison. White is scheduled to be sentenced by United States District Judge John T. Fowlkes on July 9, 2015.

This case was investigated by the Tipton County Sheriff’s Office; Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Attorney General’s Office for the 25th Judicial District. The government’s case is being prosecuted by Special Assistant U.S. Attorney Sam Stringfellow and Assistant U.S. Attorney Daniel French.

Memphis, TN – A Memphis woman has been sentenced to 18 months in federal prison for defrauding Chickasaw Country Club of approximately $736,000. There is no parole in the federal prison system.

Sue M. Winfrey, 58, of Memphis, TN was sentenced this morning by United States District Court Judge John T. Fowlkes. Winfrey pled guilty on January 7, 2015 to one count of wire fraud in connection with a scheme to defraud Chickasaw Country Club.

According to the indictment returned in October 2014, beginning in 2003, Winfrey, a former payroll clerk for Chickasaw County Country Club, would submit fraudulent payroll data to Chickasaw’s payroll processor, Paychex of New York. As a result of these falsified submissions, Winfrey received approximately $736,000, which was deposited electronically into Winfrey’s bank accounts at Bank of America.

In addition to the prison sentence, Winfrey was ordered to serve two years of supervised release and pay restitution to Chickasaw Country Club in the amount of $486,000 and to Traveler’s Indemnity Company in the amount of $250,000.

This case was investigated by the United States Secret Service. The government’s case was prosecuted by Assistant U.S. Attorney Carroll L. Andre III.

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Memphis, TN – A former U.S. Postal Service contractor and his wife have been charged in a federal indictment that accuses them of conspiring to steal packages of prescription pharmaceuticals intended for military veterans.

Kevin Cochrane, 34, of Verbena, Alabama, and Carmen Cochrane, 36, also of Verbena, Alabama, were named in a four-count indictment charging the couple with conspiracy to possess stolen U.S. Mail; two counts of theft of Veteran’s Administration U.S. Mail packages; and one count of conspiracy to possess hydrocodone with the intent to distribute it. Carmen Cochrane was arrested last Thursday and Kevin Cochrane was taken into custody this morning by U.S. Postal Inspectors.

The thefts occurred at a U.S. Postal Service loading facility in Memphis in November 2013. The packages contained prescription medications intended for veterans. The Cochranes are also charged with conspiring to possess with intent to distribute hydrocodone stolen from the packages.

“The defendants’ alleged scheme of stealing medicine intended for veterans from a U.S. Postal facility is a shameful betrayal of our dedicated service members,” stated U.S. Attorney Edward Stanton III. “This husband and wife will now be held accountable in a court of law for their alleged criminal actions.”

“The U.S. Postal Service has hardworking, honest employees. The arrest of these individuals is a priority to the Postal Inspection Service to ensure the nation’s mail system is protected and those who violate the public trust will be aggressively prosecuted,” said Tom Noyes, Postal Inspector in Charge of the Charlotte Division – Memphis Field Office.

If they are convicted, the couple would face a statutory maximum sentence of 10 years in federal prison.

This case was investigated by the United States Postal Inspection Service and U.S. Department of Veterans Affairs, Office of Inspector General. The government’s case is being prosecuted by Assistant U.S. Attorney David Pritchard.

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