Western District of Tennessee

Memphis, TN – Sue M. Winfrey, age 58, of Memphis, TN, was indicted yesterday by a federal grand jury on charges of wire fraud, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.

The seven count indictment alleges that beginning in 2003 and continuing until August 2013, Winfrey, a former payroll clerk at Chickasaw Country Club, submitted fraudulent payroll data to Chickasaw’s payroll processor, Paychex of New York. The indictment alleges that as a result of the submission of the fraudulent payroll data, Winfrey unlawfully received approximately $736,000.00 which was deposited electronically into bank accounts she maintained at Bank of America.

Winfrey has been charged with seven counts of wire fraud. If convicted she faces up to 20 years in prison on each count and a fine of up to $250,000.00.

This investigation was conducted by the United States Secret Service. This case is being prosecuted for the government by Assistant United States Attorney Carroll L. Andre III.

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

Memphis, TN – Wayne David McAlpin, Jr., 50, of Memphis, TN was sentenced yesterday by U.S. District Judge John T. Fowlkes, Jr. to serve 15 months in federal prison followed by three years of supervised release for his role in selling cars to drug traffickers in an effort to launder drug proceeds, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee; Brian K. Chambers, the Resident Agent in Charge of the DEA Memphis Resident Office; and Christopher A. Henry, Special Agent in Charge of the Nashville Field Office. There is no parole in the federal system.

McAlpin pled guilty on July 11, 2013 to one count of money laundering and one count of filing fraudulent documents with the Internal Revenue Service (IRS).

In addition to the prison sentence, McAlpin, Jr. and his co-defendants forfeited their interests in almost $12 million dollars in bank accounts, investment accounts and vehicles, including: a 2008 Bentley Continental GTC; a 2011 Audi A8; a 2009 Cadillac Escalade; and a 2011 Lexus GX460.

“While masking themselves as legitimate businessmen, Wayne McAlpin Jr. and his cohorts at Budget Auto Sales lined their pockets with excessive profits by helping drug dealers enjoy the lavish fruits of their criminal acts,” said U.S. Attorney Edward L. Stanton III. “McAlpin, a now twice convicted felon, will spend 15 months in a federal prison in addition to forfeiting millions of dollars of ill-gotten gains.”

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

“Traffickers may be equipped with a multitude of sophisticated methods in which to hide their assets, but Drug Enforcement Administration’s (DEA) relentless pursuit to disrupt and destroy their drug trafficking activities prevailed in this case,” said Brian K. Chambers, the Resident Agent in Charge of the DEA Memphis Resident Office. “This investigation was a success because of the multi-level law enforcement cooperation.”

According to the agreed-upon statement of facts filed with the court during McAlpin, Jr.’s plea hearing, during the time in question, McAlpin, Jr. was president of Budget Auto Sales. This business was frequented by individuals engaged in criminal activity, including, but not limited to, illegal drug trafficking. The business sold multiple vehicles to drug traffickers, knowing they had previously had vehicles seized by law enforcement for transporting and concealing illegal drugs.

As part of the criminal conspiracy to conceal the fact that cars were being purchased with the proceeds of illegal drug trafficking, McAlpin, Jr. submitted IRS Form 8300s with false and misleading information. This form requires any car dealership to report all cash transactions of $10,000 or more. The individuals also titled vehicles in the names of other people, as part of an effort to hide the transactions from law enforcement.

"The role of the IRS CI in narcotics investigations is to follow the money so we can financially disrupt and dismantle major drug trafficking organizations," stated Christopher A. Henry, Special Agent in Charge of the Nashville Field Office. “One of the government’s most powerful weapons is the ability to seize and forfeit the assets associated with narcotics-related crime. IRS Criminal Investigation is proud to work with our law enforcement partners by lending our expertise in these complex financial investigations."

This crime was investigated by the Drug Enforcement Administration, IRS Criminal Investigations, the Memphis Police Department, and the Shelby County Sheriff’s Department. The case was prosecuted by Assistant United States Attorneys Chris Cotten, Daniel French, and Jerry Kitchen on behalf of the government.

Memphis, TN – Daniel Puckett, age 58, of Nashville, Tennessee, pleaded guilty today to a one count indictment charging him with mailing a threatening communication to his ex-employer, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.

“Today’s guilty plea reflects the vile nature of the threatening communication Daniel Puckett sent to his fellow co-worker,” said U.S. Attorney Stanton. “The U.S. Attorney’s Office will continue to vigorously prosecute those who commit heinous acts like Puckett’s, as there is simply no room in a civilized society for this kind of hateful conduct.”

According to facts revealed in the indictment and recited during the plea, Puckett was employed by Aerotech Corporation, a temporary employment service. Puckett was placed as a temporary employee at Unilever Corporation in Covington, Tennessee, but was later released by Unilever. Puckett sent a threatening communication written across the front of a Ku Klux Klan publication titled The Torch to his ex-supervisor at Unilever. The statement written on the publication read, “We have space for you and your family under a big oak tree.” Inside the publication it was written that the supervisor was not a member of the “Knights” but wanted to attend the “National Klan Congress.” Title 18, United States Code, Section 876 makes it a crime to mail a threatening communication.

Puckett faces a maximum penalty of five years imprisonment, a $250,000 fine, and a period of supervised release. Sentencing is scheduled for January 9, 2015, at 11:00 a.m. before United States District Judge Sheryl H. Lipman.

This case was investigated by the United States Postal Inspection Service and the Covington Police Department. The case is being prosecuted by First Assistant United States Attorney Lawrence Laurenzi on behalf of the government.

Memphis, TN – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, and Christopher A. Henry, Special Agent in Charge, IRS-Criminal Investigation, announced today that Cheryl Wright, 30, of Memphis, Tenn., was sentenced by United States District Judge John T. Fowlkes, Jr. to serve 72 months (six years) in prison followed by three years of supervised release, and is jointly liable with co-conspirator Nakita Brooks to pay restitution in the amount of $690,767.84 to the Internal Revenue Service (IRS).

“Through her fraudulent tax scheme, Cheryl Wright victimized the IRS and the people whose identities she stole,” said United States Attorney Stanton. “And while she may have avoided paying taxes and received hundreds of thousands of dollars in refunds she was not owed, she will now pay the ultimate price of spending the next six years in a federal prison for her criminal acts.”.

“Investigating refund fraud and identity theft is a priority for IRS Criminal Investigation,” said Christopher A. Henry, Special Agent in Charge. “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.”

On April 22, 2014, Wright pled guilty to one count of a three-count indictment charging her and co-conspirator, Nakita Brooks, 31, with conspiracy to file false tax returns, theft of public money and identity theft. According to the facts presented in the indictment and revealed during sentencing hearings, beginning as early as February 2010 through at least November 2011, Brooks and Wright filed hundreds of false tax returns using the personal identifying information of deceased individuals, including social security numbers.

In addition to filing false returns, Wright and Brooks also set up tax return services using stolen identities as the preparers of the returns. In 2010, the name of the company used to prepare the returns was Rattler’s Tax Pals. In 2011, the name of the company used to prepare the returns was Taxes Express. Three individuals, including a nine-year old girl from Indiana, had their tax information fraudulently listed as the preparers for these companies.

Brooks was sentenced July 11, 2014, by U.S. District Judge John T. Fowlkes, Jr., to serve 10 years in federal prison, to be followed by three years of supervised release, and ordered to pay restitution of $690,767.84 to the Internal Revenue Service (IRS).

This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney David Pritchard represented the government.

Memphis, TN – Attorney General Eric Holder announced today the launch of the Justice Department’s National Initiative for Building Community Trust and Justice. Members of the Attorney General’s Advisory Committee (AGAC)’s Racial Disparities working group joined the Attorney General for the announcement in Washington, DC. Edward L. Stanton III, United States Attorney for the Western District of Tennessee, is a member of the AGAC Racial Disparities working group and joined the Attorney General for today’s announcement in Washington.

Funded through a $4.75 million grant, the initiative will create a substantial investment in training, evidence-based strategies, policy development and research to combat distrust and hostility between law enforcement and the communities they serve. Recent protests in Ferguson, Missouri, following an officer-involved shooting have brought national attention to the importance of strong police-community relationships, which has been a priority for the Justice Department under Attorney General Holder.

The initiative, which will be an ongoing partnership with the Justice Department, will provide training to law enforcement and communities on bias reduction and procedural fairness and will apply evidence-based strategies in five pilot sites around the country. It will also establish a clearinghouse where information, research, and technical assistance are readily accessible for law enforcement, criminal justice practitioners and community leaders.

United States Attorney Stanton said, "I was pleased to join Attorney General Holder for today's announcement of this key initiative, which will help ensure fairness, eliminate bias, and build community engagement throughout the country. My office and our law enforcement partners have always worked hard to build and preserve strong, cooperative police-community relationships throughout West Tennessee. We will continue to make this a top priority."

In a holistic approach, the initiative will simultaneously address the tenets of procedural justice, reducing implicit bias and facilitating racial reconciliation. The initiative will compliment and be advised by other Justice Department components such as the Office of Justice Programs, the Office of Community Oriented Policing Services, the Civil Rights Division and the Community Relations Service.

Memphis, TN – Billy Ray Wyatt, age 54, of Hazel, KY, was sentenced to 10 years or 120 months in federal prison Friday following his guilty plea to one count of coercion of a minor to engage in sexual activity, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.

Beginning in February of 2012, Wyatt used the internet and social media to meet young females and groom them for sexual encounters. After meeting one 16-year-old girl from Paris, Henry County, Tenn., Wyatt drove to Tennessee and picked her up and took her back to Kentucky with the intent of having a sexual encounter. Wyatt is a former Henry County, Tenn. resident. Wyatt also communicated online and made overtures to an agent acting in an undercover capacity as a teenage female. In a recorded phone conversation, Wyatt talked to her about masturbation and what sexual acts he wanted to perform on her.

In addition to the prison sentence, U.S. District Judge J. Daniel Breen ordered Wyatt to serve five years of supervised release. There is no parole in the federal prison system.

This case was investigated by the Henry County Sheriff’s Office and the Federal Bureau of Investigation Child Exploitation Task Force. Assistant U.S. Attorney Debra Ireland represented the government.

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

Memphis, TN – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, announced today that former Department of Navy employee Donna Lorraine Brown, age 45, of Millington, Tennessee, was sentenced yesterday by United States District Judge Sheryl H. Lipman to serve eight months in federal prison followed by one year of supervised release with two months of home confinement and electronic monitoring. Brown was also ordered to pay restitution in the amount of $22,500.19 to the Department of Navy. There is no parole in the federal system.

According to the criminal information and statements made in court, Brown was an employee of the United States Department of Navy assigned to the Navy Personnel Command Onboard Naval Support Activity Mid-South in Millington, Tennessee. Her primary duties included coordinating travel and processing travel reimbursement claims for Navy families of deceased active duty sailors.

Between June 2012 and March 2013, Brown filed approximately 19 false claims for travel reimbursement with the United States Navy using the personal identifying information (such as Social Security numbers) of family members of deceased Navy sailors. She then deposited the money that she received from these false claims into banking accounts controlled by her and her family members. The Navy’s investigation revealed that Brown unlawfully collected $22,500.19 from the Navy as a result of the false claims that she filed.

This case was investigated by the United States Naval Criminal Investigative Service. Assistant United States Attorney Leetra J. Harris represented the government.

Memphis, TN – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, announced that the City of Memphis has been awarded two Department of Justice grants, together totaling over $1 million, that will help enforce protection orders and protect victims of sexual assault and domestic violence, as well as reduce gang and gun violence. The two grants are a Grant to Encourage Arrest Policies and Enforcement of Protection Orders in the amount of $900,000, and a Project Safe Neighborhoods Grant in the amount of $148,885.

The Grants to Encourage Arrest Policies and Enforcement of Protection Orders are intended to enhance partnerships between criminal justice agencies, victim services providers, and community organizations. The Department of Justice’s Office on Violence Against Women awards these grants, which enhance victim safety and offender accountability in cases of domestic violence, dating violence, sexual assault and stalking by encouraging jurisdictions to implement pro-arrest policies as an effective intervention.

The City of Memphis, in collaboration with the Shelby County Rape Crisis Center, will use the $900,000 grant to improve post-testing requirements for victim notifications, investigations, and prosecution of increased sexual assault cases resulting from the processing of the backlog of sexual assault kits.

The Project Safe Neighborhoods (PSN) Program is a nationwide commitment to reduce gun violence and violent crime. The goal of PSN is to take a hard line against gun criminals and gangs through every available means in an effort to make our streets and communities safer. The PSN task force, which is comprised of federal, state, and local law enforcement and other community members, implements gang violence and gun crime enforcement through tactical intelligence gathering, more aggressive prosecutions, training, deterring juveniles away from the criminal justice system, and developing and promoting meaningful community outreach efforts.

The DOJ Bureau of Justice Assistance’s grant of $148,885 will help PSN and the City of Memphis expand its data analysis and tracking capabilities, in order to ensure more efficient and targeted law enforcement efforts against gang and gun violence.

“Events of recent weeks have served as a tragic reminder of the need to protect victims of domestic violence and hold accountable those who commit violent crimes,” said United States Attorney Edward L. Stanton III. “The new $900,000 grant from the DOJ Office on Violence Against Women will help local authorities process the backlog in sexual assault kits and prosecute those who commit such heinous acts to the fullest extent the law allows. And the Project Safe Neighborhoods grant will bolster our ongoing efforts to track down and bring to justice those who illegally possess and use firearms. Together, these grants total over a million dollars, and they underscore the Department of Justice’s commitment to keeping our citizens safe and protecting victims – especially victims of domestic violence.”

Memphis, TN – Anthony Taylor, age 46, of Martin, Tenn., received a federal prison sentence of over 21 years, or 262 months, following his conviction on January 28, 2014, by a jury on two counts related to possession of a firearm by a convicted felon and possession of a stolen firearm, announced United States Attorney for the Western District of Tennessee Edward L. Stanton III, and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Glenn Anderson.

“Federal and local law enforcement did an outstanding job in bringing the defendant to justice,” said United States Attorney Stanton. “The Court’s sentence of 262 months sends a strong message that we will aggressively prosecute individuals who illegally possess and sell weapons.”

“The result of this investigation is more evidence of ATF’s commitment to combating violent crime in Tennessee,” stated Special Agent in Charge Anderson. “ATF’s Frontline strategy utilizes every available resource to make our communities a safer place to live.”

According to the facts alleged in the criminal complaint and revealed in open court, on January 17, 2013, detectives of the Martin Police Department in Martin, Tenn., conducted an undercover operation utilizing a confidential informant. The confidential informant purchased what was later determined to be a stolen 12 gauge shotgun from Taylor. Taylor is a previously multi-convicted felon.

In addition to the prison sentence, Chief U.S. District Judge J. Daniel Breen ordered Taylor to serve two years of supervised release. There is no parole in the federal prison system.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the City of Martin, Tenn. Police Department. U.S. Attorney Edward L. Stanton III and Assistant U.S. Attorneys Victor L. Ivy and James Powell represented the government.

Memphis, TN – Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced today that Don McMahon, age 40, of Cordova, Tennessee, was sentenced on August 22, 2014 by U.S. District Judge John T. Fowlkes, Jr. to serve 30 days in federal prison followed by three years of supervised release with one year of home detention and electronic monitoring. McMahon was also ordered to pay restitution in the amount of $1,928.40 to the Association of Civilian Technicians and $10,000.00 in restitution to Zurich Surety, the Association’s insurance company.

On May 16, 2014, McMahon pled guilty to one count of an eight-count indictment charging him with wire fraud. McMahon is the former state treasurer of the Association of Civilian Technicians – State of Tennessee Council, a labor organization that represents approximately 130 members employed by the Tennessee Air National Guard at base chapters in Memphis, Nashville, Chattanooga, and Knoxville.

Between June 2009 and October 2011, while serving as the Association’s treasurer, McMahon embezzled approximately $11,868.40 in Association funds by using the Association’s debit card to withdraw cash from ATMs and to make purchases for his own personal use. He also wrote approximately $2,500 in checks to himself that were drawn on the Association’s account and falsified financial documents to hide his embezzlement.

This investigation was conducted by the Office of Labor-Management Standards. Assistant U.S. Attorney Leetra J. Harris represented the government.

Memphis, TN – United States Attorney for the Western District of Tennessee, Edward L. Stanton III, announced that Janett Dixon, 48, of Northport, Alabama; Corey Holmes, 37, of Metcalfe, Mississippi; Nia Kimble-Harris, 39, of Memphis, Tennessee; and Charles Ray Lee, 32, of Magee, Mississippi; have entered diversion agreements in the two-decade teacher certification testing scam led by ringleader Clarence Mumford, Sr., 61, of Memphis, who pled guilty in the scheme last year.

U.S. Attorney Stanton also announced the June guilty plea and sentencing of former Hillcrest High School and Byhalia High School boys basketball coach James O. Sales, 40, of Memphis.

Sales’s guilty plea is the thirteenth in a case opened by the United States Attorney’s Office in August 2011, and the four diversion agreements – which include agreements to cease teaching and to pay restitution where teaching jobs were obtained – bring the total number of diversion agreements to 40.

“Clarence Mumford and those he used in this tragic scam cheated the honest and dedicated tea chers in our communities, and, tragically, the parents and children who deserve qualified teachers in their classrooms. Crimes such as these undermine our educational institutions and strike at the fabric of our society,” stated U.S. Attorney Stanton. “We are proud to have partnered with the U.S. Secret Service, the Tennessee Bureau of Investigation, and the Shelby County District Attorney General’s Office to expose this scheme and send the message that if you are defrauding our communities we will work together and we will bring you to justice.”

The Teacher Certification Testing Scam

Proctors Catch Stand-ins Taking Exams

Law Enforcement Investigation

Mumford’s Manipulation of Participants

Dozens of Teachers and Examinations Identified – Additional Evidence Destroyed

Coaching Connection

Results of Investigation

Memphis, TN – Chastain Montgomery, Sr., 50, of Lavergne, TN, was sentenced to consecutive life sentences in federal prison for the murders of United States Postal Service employees Paula Robinson and Judy Spray, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee; Thomas Noyes, Inspector in Charge of the Charlotte Division, United States Postal Inspection Service; and Mark Gwyn, Director of the Tennessee Bureau of Investigation.

On May 22, 2014, Montgomery pled guilty to the seven count superseding indictment and avoided facing the death penalty for his crimes.

“The senseless and heinous murders of Paula Robinson and Judy Spray have left an irreplaceable void throughout the entire community,” said U.S. Attorney Edward Stanton. “I want to commend the tireless efforts of federal, state, and local law enforcement who assisted with the investigation and prosecution of this case. The life sentence without the possibility of parole imposed upon Chastain Montgomery, Sr. today will hopefully bring justice and a meaningful measure of closure to the Spray and the Robinson/Croom families.”

“Today’s sentence of Chastain Montgomery, Sr. once again shows the determination of the U.S. Postal Inspection Service to bring criminals to justice who take the lives of postal employees,” stated Inspector in Charge Thomas Noyes. “The cooperation among federal, state, and local law enforcement was second to none. We are fortunate to have such determined law enforcement partners who are willing to work countless hours to see these criminals identified and prosecuted.”

“We sincerely hope today’s sentencing brings some small sense of justice for the families and friends of Paula Robinson and Judy Spray,” said TBI Director Mark Gwyn. “Though it will probably never fully bring closure, we are thankful the cooperation of law enforcement will ensure the man responsible will never go free.”

According to the facts alleged in the superseding indictment and revealed during subsequent hearings, on October 18, 2010, Montgomery, Sr. and his son Chastain Montgomery, Jr. drove from Nashville, TN to Henning, robbed the United States Post Office, and then murdered Sales and Service Associate Robinson and Rural Carrier Associate Spray.

Following their crimes, they returned to Nashville. Eight days later, Montgomery, Jr. stole a Nissan Frontier pick-up truck in Smyrna, TN and used it as the getaway vehicle following their robbery at gunpoint of Southeast Financial Credit Union in Lavergne, TN on October 29, 2010.

One month later on November 29, 2010, the pair stole a Chevy Venture minivan and used it as a getaway vehicle following the robbery at gunpoint of Mid-South Bank in Smyrna, TN.

On February 14, 2011, the pair made plans to leave the Middle Tennessee area. Montgomery, Jr. carjacked a man and stole his Chevrolet pick-up truck, driving it from Nashville to Mason, TN. During the journey he was observed by Chief Deputy Sheriff Mike Smothers of the Haywood County Sheriff’s Department, who began a vehicular pursuit.

Chief Deputy Smothers reported that Montgomery, Jr. began driving at an excessive rate of speed and veered into other lanes in what appeared to be an attempt to cause an auto accident. Chief Deputy Smothers was joined in his pursuit by Mason Police Chief J. C. Paris.

When Montgomery, Jr. entered the town of Mason, he exited his vehicle and began shooting at members of law enforcement and innocent civilians outside a nearby market. Chief Deputy Smothers returned fire and struck Montgomery, Jr. who died at the scene.

Law enforcement immediately cordoned off the crime scene and began processing evidence. While doing so, officials noticed Montgomery, Sr. cross the crime scene barrier and begin moving toward the Chevy truck driven by his son. He was taken into custody and transported to the Tipton County Sheriff’s Department. While there, Montgomery, Sr. was interviewed by United States Postal Inspectors and made a full confession to all of his crimes.

Law enforcement confiscated a number of weapons and other items from the Mason crime scene, including the Ruger 9mm pistol and the Smith & Wesson .40 caliber pistol used to kill Robinson and Spray; a .45 caliber Glock pistol; a .380 pistol; two Mossburg 12 gauge shotguns; a Remington 12 gauge shotgun; a Springfield 9mm pistol; a Rossi .357 Magnum revolver; large amounts of ammunition; ski masks and latex gloves.

In addition to the prison sentence, Senior United States District Judge Jon Phipps McCalla ordered Montgomery to serve five years of supervised release plus restitution. There is no parole in the federal system.

This case was investigated by the United States Postal Inspection Service; the Tennessee Bureau of Investigation; the Tennessee Highway Patrol; 25th District Attorney General Mike Dunavant’s Office; the Lauderdale County Sheriff’s Department; the Tipton County Sheriff’s Department; the Haywood County Sheriff’s Department; the Mason Police Department; the Henning Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation; the United States Secret Service; the Tennessee Department of Correction; the U.S. Marshals Service; the Lavergne Police Department; the Smyrna Police Department; and the Metropolitan Nashville Police Department.

United States Attorney Edward L. Stanton III; Assistant U.S. Attorney Tony Arvin; Assistant U.S. Attorney Lorraine Craig; Assistant U.S. Attorney Stuart Canale; and Capital Case Section Attorney Michael Warbel represented the government.

Memphis, TN – Michael G. Brown, age 56, of Alpharetta, GA, has been charged in a three count indictment with wire and mail fraud, announced U. S. Attorney Edward L. Stanton III.

The indictment alleges that beginning in October 2010 and continuing until September 2013, Brown was owner and C.E.O. of Valkry Corporation and Exotic Cars South, which offered exotic cars such as Lamborghinis, Ferraris, Rolls Royces, Bentleys and Maybachs for sale. During this time period, Brown engaged in a scheme to defraud by obtaining payment for orders of these high end vehicles, which he then failed to deliver. Brown used the money for personal and business expenses, and to purchase other vehicles which he sold or leased to other customers.

Brown has been charged with two counts of wire fraud and one count of mail fraud. If convicted he faces up to 30 years in prison, a fine of up to $1 million and forfeiture of $1,984,803.

This investigation was conducted by the Memphis Division of the Federal Bureau of Investigation. This case is being prosecuted for the government by Assistant United States Attorney David Pritchard.

If you have any information regarding Brown, you are asked to contact the Memphis FBI at 901-747-4300.

Memphis, TN – The Justice Department announced today that it will monitor the election on August 7, 2014, in Shelby County, Tenn., to ensure compliance with the Voting Rights Act and other federal voting rights statutes. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.

Department personnel will monitor polling place activities. A Civil Rights Division attorney will coordinate federal activities and maintain contact with local election officials.

To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Civil Rights Division at 1-800-253-3931.

Visit this www.usdoj.gov/crt/voting for more information about the Voting Rights Act and other federal voting laws.

Memphis, TN – Janet Wheeler, age 48, of Cordova, Tennessee, pleaded guilty yesterday to a criminal information charging her with theft of government funds, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.

According to facts revealed in the criminal information and recited during the plea, between February 2009 and December 2011, Wheeler was a participant in the Housing Choice Voucher Program operated by the U.S. Department of Housing and Urban Development. An investigation revealed that Wheeler had made false representations to the Memphis Housing Authority and as a result had received over $30,000 in federal housing assistance to which she was not entitled.

Wheeler faces a maximum penalty of 10 years imprisonment, a $250,000 fine, and three years of supervised release. Sentencing is scheduled for December 5, 2014, at 9:30 a.m. before United States District Judge John T. Fowlkes.

This case was investigated by the United States Department of Housing and Urban Development. The case is being prosecuted by Assistant United States Attorney David Pritchard on behalf of the government.

Memphis, TN – Craig Wilson, 45, of Memphis, TN, pleaded guilty yesterday to assisting others in stealing United States Department of Treasury funds through the filing of false income tax returns, a violation of 18 U.S.C. § 641, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.

According to facts revealed in the criminal information and recited during the plea, between November 1, 2011 and August 30, 2012, Craig Wilson, while in his position as pastor of New Beginnings Church, assisted other individuals in stealing approximately $168,000 in funds administered by the U.S. Department of the Treasury in the form of federal income tax refunds. The U.S. Treasury tax refund checks were deposited into bank accounts controlled by Pastor Wilson and other individuals in connection with numerous fraudulent tax returns filed by associates of Wilson.

Wilson faces a maximum penalty of 10 years imprisonment, a $250,000 fine, and three years supervised release. There is no parole in the federal prison system. Sentencing is scheduled for October 28, 2014, at 2:30 p.m. before United States District Judge S. Thomas Anderson.

This case was investigated by IRS-Criminal Investigative Division and the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Stephen Hall on behalf of the government.

Memphis, TN – Darius D. Mitchell, age 26, of Henning, Tenn., was sentenced to six years in federal prison on July 25, 2014 following his March 2014 guilty plea to two counts of being a felon in possession of a firearm and one count of attempting to threaten a federal witness, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, and 25th District Attorney General Mike Dunavant.

According to the facts alleged in the indictment and revealed during the sentencing hearing, the Bureau of Alcohol, Tobacco, Firearms, and Explosives began investigating Mitchell in April 2011. During the course of the investigation, federal agents discovered that Mitchell, a previously convicted felon, was in possession of a firearm and ammunition. In addition, on November 28, 2013, Mitchell threatened and intimidated a federal witness to prevent the witness from testifying against him in court.

In addition to the prison sentence, Senior U.S. District Judge Jon P. McCalla ordered Mitchell to serve three years of supervised release. There is no parole in the federal prison system.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the 25th District Attorney General’s Office. Assistant U.S. Attorney Michelle Parks and Special Assistant U.S. Attorney Samuel R. Stringfellow represented the government.

Memphis, TN – Kevin Davis, age 24, of Memphis, Tenn., was sentenced to 151 months in federal prison today following his guilty plea to one count of distribution of child pornography, announced U.S. Attorney Edward L. Stanton III.

In December 2012, agents working undercover identified a computer in the Memphis area that had child pornography images available for downloading. The children depicted in the images were being sexually assaulted or otherwise engaging in sexually explicit conduct. Further investigation revealed that the computer belonged to Kevin Davis of Memphis. Davis admitted that he had been using a peer-to-peer file-sharing program to make the illicit images available to others.

In addition to the prison sentence, U.S. District Judge Samuel H. Mays ordered Davis to serve five years of supervised release, forfeit all computers and media containing alleged child pornography, and pay $2,400 in restitution to identified victims whose images were among those Davis made available to others. There is no parole in the federal prison system.

This case was investigated by the Memphis Child Exploitation Task Force; Federal Bureau of Investigation; Homeland Security Investigations; Memphis Police Department; Shelby County Sheriff’s Office; U.S. Marshal’s Service, U.S. Secret Service; and the U.S. Postal Inspectors. Assistant U.S. Attorney Debra Ireland represented the government.

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

Memphis, TN – Ronnie Jackson, Jr., 29, of Memphis, TN, was sentenced to a prison sentence of 1846 months, or 153 years and 10 months, following his conviction on March 13, 2014, by a federal jury on 12 counts related to a series of business robberies in and around Shelby County, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.

According the facts presented in the indictment and revealed in open court, Jackson and his accomplices robbed three Dollar General Stores, a Family Dollar Store, and two Walgreens drug stores in April and May of 2012. During the last robbery, Jackson and a female accomplice went into the Walgreens at 824 West Poplar Street, Collierville, TN, to case the store. After Jackson and his female accomplice returned to their getaway vehicle, two male accomplices entered the store, forcing approximately 14 customers and five employees to the floor at gunpoint. They ordered the manager to open the safe and took more than $6,000.

One of the victims of the robbery managed to dial 911, and Collierville Police converged on the scene, arriving in time to witness one of the male accomplices attempting to enter the getaway vehicle. Jackson and his female accomplice were taken into custody and the male accomplices were apprehended after a brief foot pursuit.

Jackson was convicted on six counts of robbing a business engaged in interstate commerce (also known as “Hobbs Act” robberies), and six counts of using a firearm during a crime of violence.

In addition to the prison sentence, United States District Judge S. Thomas Anderson ordered Jackson to serve three years of supervised release. There is no parole in the federal prison system.

This case was investigated by the Safe Streets Task Force, specifically by the Federal Bureau of Investigation, the Memphis Police Department, and the Collierville Police Department. Assistant U.S. Attorney David Pritchard and Special Assistant U.S. Attorney Bo Summers represented the government .

Memphis, TN - Edward L. Stanton III, United States Attorney for the Western District of Tennessee; and Sheriff William Oldham, Shelby County Sheriff’s Office, announced today that on July 15, 2014, Senior United States District Judge Jon Phipps McCalla sentenced Michael A. Patterson, formerly a medical doctor who had an office in Bartlett, Tennessee, to 16 years in federal prison for several violations of the Controlled Substance Act involving prescription narcotics.

In November of 2011, Patterson, who according to the indictment was a medical doctor licensed to practice medicine in Tennessee, was indicted for a number of violations of the federal Controlled Substances Act involving narcotics. The indictment noted that Patterson practiced medicine under the trade name Bartlett Psychiatric Center, PC, at an office located on Kirby-Whitten Road in Bartlett, Tennessee. According to the indictment Patterson’s medical license was revoked on March 22, 2011 by the Tennessee Board of Medical Examiners pursuant to the terms of an Agreed Order.

Patterson subsequently pleaded guilty to Counts 2 and 37 of the indictment. He was charged in Count 2 with illegally distributing Oxycodone, a Schedule II Controlled Substance, by issuing a prescription “outside the usual course of medical practice and for no legitimate medical purpose,” in violation of Title 21, United States Code, Section 841(a)(1). This section of the Controlled Substances Act makes it a crime to illegally distribute a controlled substance. Under federal law, Schedule II Controlled Substances are drugs that have a “high potential for abuse” and for which abuse “may lead to severe psychological of physical dependence.” Oxycodone is defined as a Schedule II Controlled Substance under the Controlled Substances Act.

Patterson was charged in Count 37 of the indictment with illegally distributing hydrocodone tablets by providing a person with a forged prescription in May 2011, in violation of Title 21, United States Code, Section 841(a)(1). Hydrocodone is defined as a Schedule III Controlled Substance under the Controlled Substances Act. Schedule III Controlled Substances are defined as drugs that have a potential for abuse, and the abuse of which may lead to “moderate physical dependence or high psychological dependence.”

In March of 2012, Patterson was indicted by a federal grand jury in the Northern District of Mississippi and charged with violating the Controlled Substances Act. That case was transferred to Memphis and Patterson pleaded guilty to knowingly using a revoked registration number in order to dispense a prescription for a Schedule IV narcotic in violation of Title 21, United States Code, Section 843(a)(2).

In addition to the prison sentence, Senior United States District Judge Jon Phipps McCalla ordered Patterson to serve eight years of supervised release. There is no parole in the federal system.

“Licensed professionals who nefariously hide behind their titles and white jackets to illegally distribute prescription drugs are just as much ‘drug dealers’ as those who deal crack cocaine on our streets,” said U.S. Attorney Stanton. “The Court’s sentence should serve as a clear reminder that this type of conduct will not be tolerated.”

“Criminal activity of any kind will not be tolerated by those individuals who willingly choose to violate the law,” stated Sheriff Oldham. “We will continue to work closely with U.S. Attorney Stanton, the U.S. Attorney’s Office and other law enforcement agencies to make sure those who commit these crimes are off the streets.”

The case was investigated by Tennessee Bureau of Investigation and the Shelby County Sheriff’s Office. Assistant U.S. Attorney Joseph C. Murphy, Jr., prosecuted the case on behalf of the government.

Memphis, TN – Jessica Nicole Pinkerton, age 33, of Humboldt, Tennessee, pleaded guilty today to a criminal information charging her with one count of wire fraud and one count of tax fraud, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee; A. Todd McCall, Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation; and Christopher A. Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office.

According to the criminal information and statements made in court, Pinkerton was employed as a financial services manager at the University School of Jackson (USJ) from 2008 to 2014. Beginning in late 2009 through early 2014, Pinkerton, in her capacity as financial services manager, initiated Automatic Clearing House (ACH) transfers of USJ funds into her personal bank account. Pinkerton also filed a 2013 IRS form 1040, stating that her earned income was $29,321 when it actually was $195,689.71. As a part of the plea agreement filed today, Pinkerton will owe restitution of $606,375.33 to the University School of Jackson and $143,168.37 to the Internal Revenue Service.

“This case underscores our unwavering commitment to bring to justice those who steal from others and brazenly line their pockets by committing white collar crimes,” said United States Attorney Stanton. “When employees such as Jessica Pinkerton scheme to fraudulently divert funds from employers, the United States Attorney’s Office will work with law enforcement partners to ensure those individuals are held accountable and prosecuted to the full extent of the law.”

“This plea is the result of the hard work of the FBI and our law enforcement partners in the pursuit of those who use fraud to line their pockets with other people’s money,” said Special Agent in Charge McCall. “It should send a signal that criminal behavior like this will not go undetected. We will find you, catch you, and you will be held accountable for your actions.”

“The IRS enforces the nation’s tax laws, but also takes particular interest in cases where someone, for their own personal benefit, has taken what belonged to others,” stated Special Agent in Charge Henry. “No matter what the source of income, all income is taxable. The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS’ enforcement strategy. We are pleased with the successful resolution of this investigation due to the cooperative efforts of our law enforcement partners.”

Pinkerton faces a maximum penalty of 20 years imprisonment, a $250,000 fine, and three years supervised release. Sentencing is scheduled for October 23, 2014 at 1:15 p.m. before Chief United States District Judge J. Daniel Breen.

This case was investigated by the Federal Bureau of Investigation – Jackson Resident Agency, and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Victor L. Ivy on behalf of the government.

Memphis, TN – Jerry Dennis, 68, of Horn Lake, MS, pled guilty today to a one-count information charging conspiracy to launder approximately $250,000 in bribe payments received from Afghan contractors in Afghanistan, announced Assistant Attorney General Leslie Caldwell of the Justice Department’s Criminal Division and United States Attorney for the Western District of Tennessee Edward L. Stanton III.

According to facts revealed in the criminal information and during the hearing, Jimmy Dennis, a former First Sergeant with the United States Army, was assigned to the Humanitarian Aid Yard at Bagram Air Field, Afghanistan. He served as a paying agent from March 2008 until his return to his home base at Fort Campbell, KY.

Together with a Project Purchasing Officer (PPO), Jimmy Dennis worked as a team to procure supplies from local Afghan contractors. These supplies were used as part of the Commander’s Emergency Response Program for urgent humanitarian relief requirements in Afghanistan.

Soon after Jimmy Dennis began working as a paying agent, an Afghan interpreter offered him a $10,000 bribe/kickback to accept certain Afghan contractors onto the list of eligible contractors. Jimmy Dennis accepted the money and later accepted bribe payments from a second interpreter to allow additional vendors onto the list of eligible contractors. Jimmy Dennis estimated that he personally received about $250,000 in bribes.

Jimmy Dennis smuggled the money home through the U.S. Mail through a variety of means including sending home a “jingle truck” (colorfully decorated trucks or buses in Afghanistan and Pakistan) to his father, Jerry Dennis. Jimmy Dennis hid the money in the rear compartment of the toy truck. Jimmy Dennis also shipped a hope chest containing approximately $100,000 in cash in a concealed compartment to Jerry Dennis. Jerry Dennis would then deposit the funds received from Jimmy Dennis into his personal bank account. Jerry Dennis stopped depositing the money into his bank account after being questioned by bank authorities regarding his cash deposits.

Jimmy Dennis then met with James Pittman while on leave and asked if he could send the money to Pittman to launder through his landscaping company. Pittman agreed and began sending “salary” checks to Jimmy Dennis after Jimmy Dennis provided Pittman with jingle trucks containing hidden cash and Jerry Dennis provided $20,000 remaining from the money he had received. Jerry and Jimmy Dennis used the money for a number of personal expenses including paying vehicle loans and buying motorcycles.

James Pittman and Jimmy Dennis pled guilty to the same charge, Pittman on May 15, 2014 before U.S. Magistrate Judge William B. Carter of the Eastern District of Tennessee and Jimmy Dennis on May 28, 2014 before U.S. District Judge Samuel H. Mays, Jr.

Jerry Dennis faces a maximum penalty of 20 years in prison, a $500,000 fine, restitution, forfeiture, and five years of supervised release. Sentencing is scheduled for November 20, 2014 at 2:00 p.m. before U.S. District Judge Samuel H. Mays, Jr.

This case was investigated by the Special Inspector General for Afghanistan Reconstruction, the FBI, the Army Criminal Investigative Division, the Defense Criminal Investigative Service, and the Air Force Office of Special Investigation. The prosecution is being handled by Trial Attorney Daniel Butler of the Criminal Division of the Department of Justice and Assistant U.S. Attorneys Frederick Godwin of the Western District of Tennessee and James Brooks of the Eastern District of Tennessee.

Memphis, TN – Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, and Christopher A. Henry, Special Agent in Charge, IRS-Criminal Investigation, announced today that Nakita Brooks, 31, of Memphis, Tennessee, was sentenced by U.S. District Judge John T. Fowlkes, Jr. to serve 120 months in prison followed by three years of supervised release, and ordered to pay restitution of $690,767.84 to the Internal Revenue Service (IRS).

On April 11, 2014, Brooks pled guilty to one count of a three-count indictment charging her and co-conspirator, Cheryl Wright, 30, with conspiracy to file false tax returns, theft of public money and identity theft. According to the facts presented in the indictment and revealed during sentencing hearings, beginning as early as February 2010 through at least November 2011, Brooks and Wright filed hundreds of false tax returns using the personal identifying information of deceased individuals, including social security numbers.

In addition to filing false returns, Wright and Brooks also set up tax return services using stolen identities as the preparers of the returns. In 2010, the name of the company used to prepare the returns was Rattler’s Tax Pals. In 2011, the name of the company used to prepare the returns was Taxes Express. Three individuals, including a nine-year old girl from Indiana, had their tax information fraudulently listed as the preparers for these companies.

Wright is scheduled to be sentenced July 24, 2014, before U.S. District Judge John T. Fowlkes, Jr.

This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney David Pritchard represented the government.

Memphis, TN – Fred Masters, Jr., age 48, of Mason, Tenn., was sentenced to 120 months in federal prison following his guilty plea to one count of possessing equipment, chemicals, products, and materials that may be used to manufacture methamphetamine, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.

According to the facts alleged in the indictment and revealed during the sentencing hearing, on March 3, 2012, Tipton County Sheriff’s Office Deputies and a canine officer went to Masters’s home to execute a search warrant. When the officers arrived, Masters released his pit bull to attack the officers as Masters fled into the woods. The officers searched Masters’s home and found several chemical components consistent with the manufacture of methamphetamine. Officers also found methamphetamine on a table in the bedroom next to Masters’s Tennessee ID. Masters was apprehended a week later by law enforcement officials.

In addition to the prison sentence, United States District Judge Jon P. McCalla ordered Masters to serve three years of supervised release. There is no parole in the federal prison system.

This case was investigated by the Tipton County Sheriff’s Office and the 25th District Attorney General’s Office. Special Assistant U.S. Attorney Samuel R. Stringfellow represented the government.

Memphis, TN – Fred Masters, Jr., age 48, of Mason, Tenn., was sentenced to 120 months in federal prison following his guilty plea to one count of possessing equipment, chemicals, products, and materials that may be used to manufacture methamphetamine, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.

According to the facts alleged in the indictment and revealed during the sentencing hearing, on March 3, 2012, Tipton County Sheriff’s Office Deputies and a canine officer went to Masters’s home to execute a search warrant. When the officers arrived, Masters released his pit bull to attack the officers as Masters fled into the woods. The officers searched Masters’s home and found several chemical components consistent with the manufacture of methamphetamine. Officers also found methamphetamine on a table in the bedroom next to Masters’s Tennessee ID. Masters was apprehended a week later by law enforcement officials.

In addition to the prison sentence, United States District Judge Jon P. McCalla ordered Masters to serve three years of supervised release. There is no parole in the federal prison system.

This case was investigated by the Tipton County Sheriff’s Office and the 25th District Attorney General’s Office. Special Assistant U.S. Attorney Samuel R. Stringfellow represented the government.

Memphis, TN – Darrin Albert Searle, 44, of Loudon, TN, was sentenced today to 24 months in federal prison following his guilty plea to one-count of filing a false tax return, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.

According to the facts alleged in the information and revealed during the sentencing hearing, while working as a government contractor in Iraq in 2007, Searle failed to disclose $618,186 of income he received through kickbacks. Searle is required to file amended returns and pay all relevant taxes, interest, and penalties.

In addition to the prison sentence, United States District Judge John T. Fowlkes, Jr. ordered Searle to serve one year of supervised release and to pay $58,422 in restitution to the Internal Revenue Service. There is no parole in the federal prison system.

This case was investigated by the Special Investigator General for Iraq Reconstruction (SIGIR), the Department of the Army’s Criminal Investigative Division, Defense Criminal Investigative Service, and Internal Revenue Service Criminal Investigations. Assistant U.S. Attorney Fred Godwin represented the government.

Memphis, TN – William David Maness, age 39, of Ripley, Tenn., was sentenced to 121 months in federal prison following his guilty plea to one count of possession with intent to distribute less than 50 grams of methamphetamine, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee and 25th District Attorney General Mike Dunavant.

According to the facts alleged in the indictment and revealed during the sentencing hearing, on February 25, 2013, Maness possessed and distributed under 50 grams of methamphetamine to an undercover source who was working for the Lauderdale County Sheriff’s Department. This is Maness’s fourth methamphetamine-related conviction.

“Illegal drug trafficking, and the violence that often accompanies it, is a plague upon our communities. My office will vigorously pursue any and all involved in these illegal activities” said US Attorney Stanton.

“Methamphetamine has had a devastating impact on rural communities in Tennessee,” said District Attorney General Dunavant. “This defendant, in particular, has been distributing methamphetamine in Lauderdale County for the last eight years. This prison sentence will prevent Maness from further destroying our community and sends a message to other meth dealers.”

In addition to the prison sentence, U.S. District Judge Samuel H. Mays ordered Maness to serve three years of supervised release. There is no parole in the federal prison system.

This case was investigated by the Lauderdale County Sheriff’s Office and the 25th District Attorney General’s Office. Special Assistant U.S. Attorney Samuel R. Stringfellow represented the government.

Memphis, TN – Larry Caleb Fish, age 21, of Ripley, Tenn., was sentenced to 92 months in federal prison on Thursday following his guilty plea to one count of being a felon in possession of a firearm, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee and 25th District Attorney General Mike Dunavant.

According to the facts alleged in the indictment and revealed during the sentencing hearing, Fish, who was a previously convicted felon, was arrested on January 27, 2013, for possessing a stolen Smith & Wesson 9mm firearm. Fish traded a friend $80 and some Xanax and Marijuana for the stolen firearm. Fish’s criminal history is extensive and he has multiple felony convictions.

In addition to the prison sentence, U.S. District Judge S. Thomas Anderson ordered Fish to serve three years of supervised release. There is no parole in the federal prison system.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Fayette County Sheriff’s Office and the 25th District Attorney General’s Office. Special Assistant U.S. Attorney Samuel R. Stringfellow represented the government.

Memphis, TN – Travis Fox, age 36, and Jason Forbess, age 36, both of Atoka, TN, have been charged in a two count indictment with manufacturing and distributing synthetic drugs and employing minors to distribute synthetic drugs, announced Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee and 25th District Attorney General Mike Dunavant.

The indictment alleges that beginning in April of 2009, Fox and Forbess manufactured and distributed synthetic drugs often known by the street names “Spice” or “K2.” These drugs mimic the hallucinogenic effects of marijuana with the added side effects of hallucinations, seizures, and dependency/addiction not usually associated with marijuana users. Fox and Forbess marketed and sold their products across the United States on their various internet websites. Beginning in 2013, the Fox and Forbess employed minors to help distribute the synthetic drugs.

“This indictment sends a clear message to those who would shamelessly peddle these dangerous substances that were never intended for human use: this behavior will not be tolerated and you will face stiff and serious consequences,” said U.S. Attorney Stanton.

“Synthetic drugs and other designer drugs are devastating communities across the United States. Synthetic drugs have been especially harmful to high school kids because the products are marketed as ‘legal’ marijuana, when, in fact, these substances are extremely dangerous and illegal,” said District Attorney General Dunavant. “We will continue working to protect these young adults, and to shut down and hold accountable individuals who manufacture and distribute synthetic drugs without regard for the law or public safety.”

Fox and Forbess have been charged with one count of conspiracy to possess and distribute and one count of conspiring to employ a person under the age of 18 years of age to possess and distribute. If convicted they face up to 25 years in prison and a fine of up to $1 million.

This investigation was conducted by the DEA and Tipton County Sheriff’s Office. This case is being prosecuted for the government by Special Assistant United States Attorney Samuel R. Stringfellow.

Jackson, TN – A superseding indictment was returned today by a federal grand jury against Clay McCormack, 49, of Jackson, TN, for his role in a scheme to fraudulently obtain loan proceeds from federally insured mortgage lenders, announced U.S. Attorney Edward L. Stanton III.

McCormack was initially charged in March, 2013 with two counts each of bank fraud and making false statements. The superseding indictment adds additional bank fraud and making false statements charges and alleges that as early as October 2007, McCormack entered into a criminal conspiracy with James Lee Bishop, a local real estate investor. Bishop would recruit individuals or limited liability companies to purchase real property for the purpose of investment. While acting as the closing attorney for Teel, McCormack and Maroney, a law firm in Jackson, TN, McCormack would indicate on the HUD-1 reporting documentation that certain lenders were paid off via check as a result of the closing. He would then void those checks, or have others void the checks, within days and reissue the checks to Bishop.

This money was then used by Bishop to provide the funds at closing on behalf of the borrowers, who would not have otherwise qualified for the loan. The paperwork would fraudulently reflect that the funds had actually been provided by the borrowers.

The superseding indictment charges McCormack with seven counts of bank fraud and six counts of making false statements. The bank fraud charges allege that McCormack defrauded the First State Bank, First South Bank, and Community Bank by conducting real estate closings and failing to pay off the original mortgages, while the false statement charges allege that he created false documentation and submitted it to the banks in furtherance of his crime.

McCormack’s co-conspirator, James Lee Bishop, pled guilty to bank fraud in February 2014. His sentencing hearing is set for August 29, 2014 before District Judge S. Thomas Anderson.

McCormack faces up to 30 years in prison and a one million dollar fine for each of the seven bank fraud counts; and up to five years in prison and a $250,000 fine for each of the six counts of making false statements.

This case was investigated by the FBI Memphis – Jackson Resident Agency, the Federal Deposit Insurance Corporation, and by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Victor L. Ivy and Matthew J. Wilson 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.

Jackson, TN – A superseding indictment was returned today by a federal grand jury against Clay McCormack, 49, of Jackson, TN, for his role in a scheme to fraudulently obtain loan proceeds from federally insured mortgage lenders, announced U.S. Attorney Edward L. Stanton III.

McCormack was initially charged in March, 2013 with two counts each of bank fraud and making false statements. The superseding indictment adds additional bank fraud and making false statements charges and alleges that as early as October 2007, McCormack entered into a criminal conspiracy with James Lee Bishop, a local real estate investor. Bishop would recruit individuals or limited liability companies to purchase real property for the purpose of investment. While acting as the closing attorney for Teel, McCormack and Maroney, a law firm in Jackson, TN, McCormack would indicate on the HUD-1 reporting documentation that certain lenders were paid off via check as a result of the closing. He would then void those checks, or have others void the checks, within days and reissue the checks to Bishop.

This money was then used by Bishop to provide the funds at closing on behalf of the borrowers, who would not have otherwise qualified for the loan. The paperwork would fraudulently reflect that the funds had actually been provided by the borrowers.

The superseding indictment charges McCormack with seven counts of bank fraud and six counts of making false statements. The bank fraud charges allege that McCormack defrauded the First State Bank, First South Bank, and Community Bank by conducting real estate closings and failing to pay off the original mortgages, while the false statement charges allege that he created false documentation and submitted it to the banks in furtherance of his crime.

McCormack’s co-conspirator, James Lee Bishop, pled guilty to bank fraud in February 2014. His sentencing hearing is set for August 29, 2014 before District Judge S. Thomas Anderson.

McCormack faces up to 30 years in prison and a one million dollar fine for each of the seven bank fraud counts; and up to five years in prison and a $250,000 fine for each of the six counts of making false statements.

This case was investigated by the FBI Memphis – Jackson Resident Agency, the Federal Deposit Insurance Corporation, and by the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Victor L. Ivy and Matthew J. Wilson 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 – Donna L. Brown, age 45, of Millington, Tennessee, pleaded guilty yesterday to a criminal information charging her with theft of government funds in violation of 18 U.S.C. § 641, announced Edward L. Stanton III, United States Attorney for the Western District of Tennessee.

According to the criminal information and statements made in court, Brown was an employee of the United States Department of Navy assigned to the Navy Personnel Command Onboard Naval Support Activity Mid-South in Millington, Tennessee. Her primary duties included coordinating travel and processing travel reimbursement claims for Navy families of deceased active duty sailors.

Between June 2012 and March 2013, Brown filed approximately 19 false claims for travel reimbursement with the United States Navy using the personal identifying information (such as Social Security numbers) of family members of deceased Navy sailors. She then deposited the money that she received from these false claims into banking accounts controlled by her and her family members. The Navy’s investigation revealed that Brown unlawfully collected $22,500.19 from the Navy as a result of the false claims that she filed.

Brown faces a maximum penalty of 10 years imprisonment, a $250,000 fine, and three years supervised release. Sentencing is scheduled for September 11, 2014 at 9:00 a.m. before United States District Judge Sheryl H. Lipman.

This case was investigated by the United States Naval Criminal Investigative Service. The case is being prosecuted by Assistant United States Attorney Leetra J. Harris on behalf of the government.

Memphis, TN – In commemoration of the 50th anniversary of the passage of Title VII of the 1964 Civil Rights Act, a Continuing Legal Education program entitled, “Remaking America: 50 Years of Title VII of the Civil Rights Act” will be held at the University of Memphis Cecil Humphreys School of Law on Friday, June 13, 2014, from 11 a.m. until 5:00 p.m., announced U.S. Attorney Edward L. Stanton III.

The program, hosted by the United States Attorney’s Office, the Equal Employment Opportunity Commission, the Cecil Humphreys School of Law and the National Bar Association, will feature Paulette Brown, President-Elect of the American Bar Association (ABA) as the luncheon speaker and panelist. Ms. Brown is an attorney with Edwards Wildman in Morristown, N.J. If elected, she will be the first woman of color to lead the ABA. Also in attendance will be P. David Lopez, General Counsel of the Equal Employment Opportunity Commission, Washington, D.C. Other panelists will include federal district judges William J. Haynes, Jr., Brian S. Miller and S. Thomas Anderson, and Tennessee attorneys Donald Donati, Michael Cody, Waverly Crenshaw and Walter Bailey. Attorneys attending the program can receive 4.5 hours of CLE.

As late as the 1960s, it was not uncommon in America to see classified advertisements that openly stated, “White Only,” “Men Only,” “Negroes need not apply,” “No Irish,” “No Jews,” and other equally discriminatory statements. Blacks, women, religious and other minorities were often relegated to the lowest paying and most undesirable jobs.

On July 2, 1964, President Johnson signed Title VII into law. It prohibits discrimination in employment decisions “because of an individual’s race, color, religion, sex, or national origin.” The bill created the Equal Employment Opportunity Commission.

“America has come a long way since the days of the ‘No Colored’ and ‘No Women’ want-ads. While impermissible discrimination still exists, it does not exist in the open and notorious way that it did prior to 1964. African Americans, women and other minorities have made great strides in obtaining employment opportunities once thought unimaginable,” said U.S. Attorney Stanton. “Title VII’s role in opening opportunities for all of America’s citizens cannot be overstated.”

For information about attending this event, contact Brenda Webber at 901-544-0122.

Jackson, TN – A federal grand jury returned indictments last month on a dozen individuals alleged to have been involved in the production or distribution of methamphetamine in Weakley and Carroll counties, announced U.S. Attorney Edward L. Stanton III.

A total of seven indictments were returned charging the following: Joey Darling, 40, of Martin, TN, with one count of conspiracy to manufacture and distribute methamphetamine and one count of possession of pseudoephedrine for methamphetamine manufacturing purposes; Clayborne Tate, 36, and Amanda Box, 34, both of Greenfield, TN, with one count each of conspiracy to manufacture and distribute methamphetamine and one count each of possession of pseudoephedrine for methamphetamine manufacturing purposes; Charles Dunning, 30, of Gleason, TN, with one count of conspiracy to manufacture and distribute methamphetamine and one count of possession of pseudoephedrine for methamphetamine manufacturing purposes; Robert Hopgood, 41, of Martin, TN, and Tiffany Prichard, 32, of Greenfield, TN, with one count each of conspiracy to manufacture and distribute methamphetamine and one count each of possession of pseudoephedrine for methamphetamine manufacturing purposes; Joshua Hearn, 29, Brandy Oliver, 27, Carl Davidson, 30, and Brianna Vermillion, 23, all of McKenzie, TN, with two counts each of conspiracy to manufacture and distribute methamphetamine; Michael Davidson, 44, of Martin, TN, with one count of conspiracy to distribute methamphetamine; and

Vaughn Yarbrough, 44, of Greenfield, TN, with one count of possession of pseudoephedrine for methamphetamine manufacturing purposes.

The potential penalties for each defendant are listed on the attached chart. There is no parole in the federal prison system.

This case was investigated by the Drug Enforcement Administration and the Weakley County Sheriff’s Office. Assistant U.S. Attorney Matt Wilson is representing 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 – Chastain Montgomery, Sr., 50, of Lavergne, TN, pleaded guilty today to seven federal crimes committed during a six-month spree that included the murders of United States Postal Service employees Paula Robinson and Judy Spray, announced U.S. Attorney Edward L. Stanton III; Keith Fixel, Inspector in Charge of the Charlotte Division, United States Postal Inspection Service; and Mark Gwyn, Director of the Tennessee Bureau of Investigation.

Montgomery’s sentencing has been set for August 12, 2014 at 9:00 a.m. before Senior U.S. District Judge Jon P. McCalla. He is facing consecutive life sentences in federal prison without the possibility of parole.

Montgomery’s guilty plea means he will not face the death penalty for his crimes. Had the case gone to trial and Montgomery been found guilty, a second unanimous vote of the jury on the issue of capital punishment would have resulted in a death sentence.

“For the Spray and the Robinson/Croom families, today represents one more step on the road to finding justice for their loved ones,” said U.S. Attorney Stanton. “The callous and unconscionable nature of the murders of these two innocent women and dedicated federal employees illustrates the depravity of these senseless crimes and underscores the importance of ensuring that the defendant can never inflict this type of mayhem again.”

“Millions of Americans see postal workers serving their families as a comforting thought. That makes the senseless murder of two innocent postal employees resonate with our country as a whole and our employees on a deeply personal level,” said Inspector in Charge Fixel. “The safety and security of postal employees is our highest priority and we are thankful for the hard work and dedication of our Inspectors along with the other law enforcement agencies that helped to bring this case to a conclusion.”
“We are grateful for the multi-agency effort that led to Montgomery’s capture and today’s admission of guilt,” said TBI Director Gwyn. “Though it can never fully comfort the families of the two women who died because of his actions, I hope it brings a small sense of comfort and closure to know the man responsible will never go free.”

According to the facts alleged in the superseding indictment and revealed during subsequent hearings, on October 18, 2010, Montgomery, Sr. and his son Chastain Montgomery, Jr. drove from Nashville, TN to Henning, robbed the United States Post Office, and then murdered Sales and Service Associate Robinson and Rural Carrier Associate Spray.

Following their crimes, they returned to Nashville. Eight days later, Montgomery, Jr. stole a Nissan Frontier pick-up truck in Smyrna, TN and used it as the getaway vehicle following their robbery at gunpoint of Southeast Financial Credit Union in Lavergne, TN on October 29, 2010.

One month later on November 29, 2010, the pair stole a Chevy Venture minivan and used it as a getaway vehicle following the robbery at gunpoint of Mid-South Bank in Smyrna, TN.

On February 14, 2011, the pair made plans to leave the Middle Tennessee area. Montgomery, Jr. carjacked a man and stole his Chevrolet pick-up truck, driving it from Nashville to Mason, TN. During the journey he was observed by Chief Deputy Sheriff Mike Smothers of the Haywood County Sheriff’s Department, who began a vehicular pursuit.

Chief Deputy Smothers reported that Montgomery, Jr. began driving at an excessive rate of speed and veered into other lanes in what appeared to be an attempt to cause an auto accident. Chief Deputy Smothers was joined in his pursuit by Mason Police Chief J. C. Paris.

When Montgomery, Jr. entered the town of Mason, he exited his vehicle and began shooting at members of law enforcement and innocent civilians outside a nearby market. Chief Deputy Smothers returned fire and struck Montgomery, Jr. who died at the scene.

Law enforcement immediately cordoned off the crime scene and began processing evidence. While doing so, officials noticed Montgomery, Sr. cross the crime scene barrier and begin moving toward the Chevy truck driven by his son. He was taken into custody and transported to the Tipton County Sheriff’s Department. While there, Montgomery, Sr. was interviewed by United States Postal Inspectors and made a full confession to all of his crimes.

Law enforcement confiscated a number of weapons and other items from the Mason crime scene, including the Ruger 9mm pistol and the Smith & Wesson .40 caliber pistol used to kill Robinson and Spray; a .45 caliber Glock pistol; a .380 pistol; two Mossburg 12 gauge shotguns; a Remington 12 gauge shotgun; a Springfield 9mm pistol; a Rossi .357 Magnum revolver; large amounts of ammunition; ski masks and latex gloves.

This case was investigated by the United States Postal Inspection Service; the Tennessee Bureau of Investigation; the Tennessee Highway Patrol; 25th District Attorney General Mike Dunavant’s Office; the Lauderdale County Sheriff’s Department; the Tipton County Sheriff’s Department; the Haywood County Sheriff’s Department; the Mason Police Department; the Henning Police Department; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Federal Bureau of Investigation; the United States Secret Service; the Tennessee Department of Correction; the U.S. Marshals Service; the Lavergne Police Department; the Smyrna Police Department; and the Metropolitan Nashville Police Department.

This case is being prosecuted by United States Attorney Edward L. Stanton III; Assistant U.S. Attorney Tony Arvin; Assistant U.S. Attorney Lorraine Craig; Assistant U.S. Attorney Stuart Canale; and Capital Case Section Attorney Michael Warbel.

Memphis, TN – Pamela Beard, a/k/a “Princess,” 43, of Memphis, TN, pleaded guilty today in a one count information to providing information regarding the detention and arrest of individuals in order to assist her husband, John L. Thomas III, in his effort to avoid law enforcement, announced U.S. Attorney Edward L. Stanton III and Shelby County Sheriff Bill Oldham.

According to the facts of the information and details provided during her plea hearing, on or about March 8, 2013 while working as a Shelby County Deputy Jailer One, Beard was asked by Thomas to access law enforcement databases to determine if his co-conspirator Andre Adams, a/k/a Andre Wrister, had been detained by law enforcement officials. At that time, Thomas and Adams were actively involved in the possession and distribution of as much as 500 grams of heroin into the Memphis area on a bi-weekly basis.

“When members of law enforcement violate the laws they have sworn to uphold, it undermines the public’s trust in the rule of law,” said U.S. Attorney Stanton. “Our office will continue to work at all levels to vigorously root out and pursue anyone who abuses their position of trust.”

“The actions of Ms. Beard are indefensible by any standard and will not be tolerated by this office,” said Shelby County Sheriff Bill Oldham. “I believe the public will look at this case as an example of one misguided individual and will in no way assume that her behavior is indicative of the responsible, hard-working professionals who make up the Shelby County Sheriff’s Office.”

Beard is scheduled to appear before U.S. District Judge S. Thomas Anderson on August 21, 2014 for sentencing. She could receive up to three years in federal prison and a fine of up to $250,000. There is no parole in the federal prison system.

This case was investigated by the Memphis Police Department’s Organized Crime Unit and the Drug Enforcement Administration. Assistant U.S. Attorney Daniel French is representing the government.

Memphis, TN – United States Attorney Edward L. Stanton III announced today that Montrell Levelle Arnold, age 42, of Memphis, Tennessee, was sentenced by United States District Judge Samuel H. Mays, Jr., to twelve months and one day in federal prison for bribery and extortion under color of official right. Arnold was also ordered to pay $3,473.54 in restitution to the United States Social Security Administration and to serve two years of supervised release.

According to the Indictment and to information presented in court, on at least five occasions while Arnold was working as a Claims Representative for the United States Social Security Administration (SSA) in Memphis, he offered to “process” purported one-time Supplemental Security Income (SSI) payments for beneficiaries in exchange for a fee. Several SSI beneficiaries agreed to pay Arnold a fee to process this purported one-time benefit payment, and at least one beneficiary paid Arnold $1,500 in cash.

Once the purported benefit payment had been electronically deposited into a beneficiary’s account, Arnold would then contact the beneficiary by telephone and by text message to confirm receipt of payment and to make arrangements to obtain his “processing fee.”

“Because of his brazen criminal scheme, Arnold now faces a prison sentence and must pay back the money he stole. We will continue to work closely with the SSA to pursue, prosecute, and bring to justice those who use their position of authority to steal from honest American taxpayers,” stated United States Attorney Edward L. Stanton III.

“While employee fraud is rare in SSA’s dedicated work force, the Office of the Inspector General has no higher priority than the investigation and prosecution of those who violate the public trust. I’m grateful that the U.S. Attorney’s office shares our determination to ensure the integrity of SSA’s programs,” said Wayne Warren, Special Agent in Charge, United States Social Security Administration, Office of the Inspector General.

The case was investigated by the United States Social Security Administration, Office of the Inspector General. Assistant U.S. Attorney Leetra Harris represented the government.

Memphis, TN – Attorney Sharon Anderson, 51, of Oakland, Tennessee, was sentenced to twenty months in federal prison yesterday after pleading guilty in September 2013 to theft from her clients’ trust accounts, announced U.S. Attorney for the Western District of Tennessee, Edward L. Stanton III.

From August 2010 to September 2011, Anderson stole nearly $200,000 from two clients, soliciting them to make what they believed were four separate short-term “hard money” loans for investors purchasing properties and awaiting conventional financing from banks. Anderson provided the victims with fraudulent documents, including settlement statements, notes, and deeds of trust, creating the impression that the victims had issued valid loans for true sales of properties by actual buyers, and that the victims had secured interests in the properties. In one instance, Anderson used the identity of another client as the supposed “buyer” for these nonexistent loans and victimized this additional client by apparently forging the client’s name on the loan documents. In reality, Anderson herself already owned each of the properties for which the victims believed they had made loans. There were no actual loans, no sales, and no buyers. Instead, Anderson used the victims’ money to purchase a $499,500 condominium at the Caribe Resort in Orange Beach, Alabama and, apparently, a $725,000 waterfront home in Orange Beach as well as a second condominium at the Caribe Resort.

Over the course of the following three years, Anderson engaged in an ongoing series of communications lying to the victims to lead them to believe that the “buyers” to whom they issued loans were finally going to obtain conventional financing and pay the victims. Anderson told the victims at various times that refinances were “in process,” that she had learned that “a couple of credit glitches” were “being addressed,” and that the property “was sold and is being refinanced.” All of these statements were lies because there were no sales, no buyers, and no loans to be refinanced. Anderson made sporadic interest payments to the victims during this time. As the victims followed up to obtain the payments, Anderson responded with such statements as “Take a breath!!” and made explanations for late payments or nonpayments such as, “I’m out of town and recovering from the flu,” “I didn’t listen to my voicemail at the office on Friday,” “our computers have been on the blink all morning,” I have been tied up all day in closings,” and “[m]y husband . . . is 200 miles out at sea.”

Each of the victims independently caught on to Anderson’s fraud when they checked the website for the register of deeds and realized they had no secured interests in the properties for which they had made loans. After the first victim threatened litigation and a report to the board of professional responsibility, Anderson paid the victim off by stealing additional money from the client trust account for the payoff. After the second victim caught Anderson, they reached an agreement that Anderson would give the victim a second mortgage on her residence at Anderson Farms in Fayette County and that Anderson would sell assets to pay off the loans. Even after the agreement, Anderson continued lying to the victim, concealing her $435,000 sale of one of the Caribe Resort condominiums in July 2013. Finally, after Anderson gave the victim a $26,744 check in November 2013 that bounced, Anderson agreed to satisfy the debt to avoid reporting of the bounced check. The victim accepted a reduced settlement from Anderson to avoid being left at a total loss.

At the sentencing hearing, Anderson asked United States District Court Judge Samuel H. Mays to consider, among other things, her role in her family, her business success, and her role in the Fayette County community, hosting and paying for events such as a Wounded Warriors event at Anderson Farms. The government noted that Anderson’s thefts were not based on any emergency need, but rather for greed. Anderson owns numerous properties, and used the money she stole to buy more. In addition, her failure to repay the victims was not apparently the result of an inability to make repayment but simply because the defendant did not want to. She had the means to host charitable events and owned multiple properties and a yacht.

One victim made a statement at the hearing reflecting the stress Anderson imposed on her. Fifty thousand dollars of the money Anderson stole from the victim came from the victim’s mother, who had gone into a nursing home while the victim was seeking repayment. Even after the victim told Anderson that fifty thousand dollars of the money was her mother’s, and that her mother had entered a nursing home, Anderson did not repay the loss until more than fifteen months later and after the victim threatened to report the bounced check. The victim stated she agreed to a partial repayment because she did not want to risk getting no payment at all. The victim added that she did not believe Anderson ever intended to repay her and that if Anderson wanted to do the right thing, she would have paid the loan in full. The victim expressed the hope that Anderson never be allowed to use her position to harm anyone else in the future.

Anderson’s attorney stated at the sentencing hearing that Anderson has agreed with the Tennessee Board of Professional Responsibility to be disbarred from the practice of law.

The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney John Fabian represented the government.

Memphis, TN – Edward L. Stanton III, United States Attorney for the Western District of Tennessee, has named Assistant U.S. Attorney Brian K. Coleman to lead the district’s Civil Rights Unit.

U.S. Attorney Stanton created the dedicated Civil Rights Unit in February 2011, in order to enhance the ability of the U.S. Attorney’s Office to enforce federal civil rights laws in the Western District of Tennessee. The Civil Rights Unit prosecutes the full spectrum of federal civil rights crimes, including official misconduct, law enforcement corruption, human trafficking, and hate crimes. In addition, fair housing, fair lending, Americans with Disability Act, and Uniform Services Employment and Re-employment Rights Act cases continue to remain a priority of the district. The Civil Rights Unit has received national acclaim for its dedicated efforts, including prominent recognition from U.S. Attorney General Eric Holder and the Department of Justice for its distinguished work in combatting human and sex trafficking.

Mr. Coleman has served as an Assistant U.S. Attorney in the Western District of Tennessee since 2008, specializing in public corruption and civil rights cases, including cases involving interstate stalking and criminal activities by members of law enforcement. As Unit Chief, Mr. Coleman will lead the implementation of the Unit’s strategic priorities and manage relationships with key federal, state, and local law enforcement partners and community stakeholders.

“As a state and federal prosecutor for over 11 years, Brian Coleman brings absolute professionalism and a tenacious desire for justice to every case he handles,” said United States Attorney Edward L. Stanton III. “I am confident that under his capable leadership, this District’s Civil Rights Unit will continue to work diligently to ensure that all Americans enjoy the rights and freedoms the Constitution guarantees them.”

Former Unit Chief Larry Laurenzi has been appointed to serve as First Assistant United States Attorney in the Western District of Tennessee.

Memphis, TN – Robert Drew, 57, of Oakland, TN, was convicted yesterday by a federal jury on two counts of robbery of a business engaged in interstate commerce (Hobbs Act robbery), two counts of using a firearm during a crime of violence; and one count of being a felon in possession of a firearm, announced U.S. Attorney Edward L. Stanton III and ATF Nashville Field Division Special Agent in Charge Jeffrey L. Fulton.

According to the facts alleged in the indictment and revealed during the four-day trial, on December 7, 2012 Drew used a Rossi .38 caliber revolver in an attempt to rob the KFC restaurant located at 8995 Highway 64, Memphis, TN. He was wearing a blue ski mask and a blue flannel-style jacket. When the cashier ran to the back of the store, Drew left the restaurant empty-handed.

Later that evening, Drew walked into the Hickory Center Market located at 3305 Highway 64, Eads, TN. Wearing the same blue ski mask and blue flannel-style jacket, he pointed the Rossi .38 caliber revolver at the clerk and demanded money. The frightened clerk ran to the back of the store and locked himself in an office. Drew left empty-handed and was apprehended minutes later by officers with the Oakland Police Department hiding in a wooded area within 2000 feet of the store, wearing the same blue mask and jacket.

During a search of the area where the defendant was found, Oakland police recovered the Rossi .38 caliber revolver used during the attempted robberies. Both the clerk at the Hickory Center Market and the cashier from KFC testified that Drew was wearing the same clothing as the robber, and video surveillance footage from both stores confirmed that to be the case.

The jury deliberated approximately two hours before reaching a unanimous verdict. Drew is scheduled to be sentenced on July 24, 2014 at 10 a.m. before U.S. District Judge John T. Fowlkes. He faces a minimum of 47 years in prison. There is no parole in the federal system.

“Any individual brazen enough to enter a business and threaten the lives of innocent people with a firearm is a clear and present danger to our community,” said U.S. Attorney Stanton. “Today, a jury of Mr. Drew’s peers sent an unequivocal message that this conduct will not be tolerated.”

“The success of this investigation is a result of the collaborative efforts of ATF and our local partners,” said ATF Special Agent in Charge Fulton. “This investigation is more evidence that ATF’s commitment to combating violent crime is unwavering. ATF’s Frontline strategy utilizes every available resource to make our communities a safer place to live.”

This case was investigated by the ATF, the Oakland Police Department, and the Memphis Police Department. Assistant U.S. Attorney David Biggers and Special Assistant U.S. Attorney Sam Stringfellow represented the government.

Memphis, TN – Daniel Puckett, 58, of Nashville, TN, was indicted today by a federal grand jury in Memphis on one count of sending threatening interstate communications via the U.S. Postal Service, announced U.S. Attorney Edward L. Stanton III.

According to the facts of the indictment, on August 9, 2013, Puckett knowingly and willfully mailed an envelope addressed to an employee of Unilever, 2000 U.S. Highway 51, Covington, TN 38019. The letter was mailed from the State of Kentucky. Inside the envelope was a publication of the “Torch,” “Summer 2013, Issue 208.” This publication was circulated by Thomas Robb, national director of the “Knights Party.”

The said publication contained a threat to harm and injure the named employee at Unilever and his family. Specifically, on the front of the publication was hand printed, “we have space for you and your family under a big oak tree!”

On another page of the publication, it was represented that the employee of Unilever was not a member of the “Knights,” but wanted to attend the “National Klan Congress.” If convicted on the sole count of the indictment, Puckett faces up to five years in federal prison and a fine of up to $250,000; however, if the incident is judged to be a hate crime, federal sentencing guidelines allow the penalties to be enhanced.

This case was investigated by the United States Postal Inspection Service. First Assistant U.S. Attorney Larry Laurenzi is representing the government.

U.S. Attorney Edward L. Stanton III established a dedicated Civil Rights Unit in February 2011 to ensure that every individual in the Western District of Tennessee enjoys the rights and freedoms guaranteed by the Constitution of the United States. The Civil Rights Unit assigns dedicated prosecutors to pursue the full spectrum of federal civil rights crimes, including official misconduct, human trafficking, and hate crimes, as well as law enforcement public corruption cases.

Memphis, TN – A tax fraud scheme that featured returns filed on behalf of deceased individuals resulted in a pair of guilty pleas, announced U.S. Attorney Edward L. Stanton III.

Nakita Brooks, 31, and Cheryl Wright, 30, both of Memphis, each pleaded guilty to one count of conspiracy to defraud the government through the filing of false income tax returns.

According to the facts presented in the indictment and revealed during sentencing hearings, beginning as early as February 2010 through at least November 2011, Brooks and Wright filed hundreds of false returns using the personal identifying information of deceased individuals, including social security numbers.

In addition to filing false returns, Wright and Brooks also set up tax return services using stolen identities as the preparers of the returns. In 2010, the name of the company used to prepare the returns was Rattler’s Tax Pals. In 2011, the name of the company used to prepare the returns was Taxes Express. Three individuals, including a nine-year old girl from Indiana, had their tax information fraudulently listed as the preparers for these companies.

At least $462,619.31 was deposited into accounts under the control of Brooks and Wright. The total loss is estimated to be $1 million to $2.5 million. The conspiracy count carries a penalty of up to 10 years in prison and a fine of up to $250,000.

Brooks will be sentenced on July 11, 2014, and Wright will be sentenced on July 24, 2014. Both will appear before U.S. District Judge John T. Fowlkes, Jr.

This case was investigated by IRS-Criminal Investigations. Assistant U.S. Attorney David Pritchard represented 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 – Six Memphis women were charged today with a total of 41 counts of fraud related to filing false income tax returns and identity theft, announced U.S. Attorney Edward L. Stanton III and Christopher A. Henry, Special Agent in Charge, Nashville Field Office, IRS-Criminal Investigations.

Melissa Harris, age 35; Erin Crutcher, age 27; Angela Jacocks, age 40; Breunca Sutton, age 28; Jennifer Freeman, age 38; and Vivian Sholar, age 34; were indicted for conspiracy to steal government funds, stealing government funds through the filing of false income tax returns, and aggravated identity theft.

According to the indictment, between August 6, 2010 and July 27, 2011, the women unlawfully obtained personal identifying information of victims, including high school students, and used this information to electronically file false federal income tax returns claiming refund amounts. They filed over 800 false returns, and directed over $1,300,000 of the generated refunds into the bank accounts of Crutcher, Jacocks, Sutton, Freeman and Sholar. Each of the conspirators received part of the refunds for their personal benefit and use.

Harris is charged with one count of conspiracy, 20 counts of theft of government funds and 20 counts of aggravated identity theft.

Crutcher, Jacocks, Sutton, Freeman, and Sholar are each charged with one count of conspiracy, four counts of theft of government funds and four counts of aggravated identity theft.

The conspiracy charge carries a penalty of up to five years in prison. The theft of government funds charges carries a penalty of up to 10 years in prison. The aggravated identity theft charges carry a mandatory two year sentence to be served consecutively.

“The facts as outlined in the indictment insult 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 Stanton. “Anyone who participates in such a scheme should understand there is be a price to be paid and that our office will seek to collect in full.”

“Individuals who commit refund fraud and identity theft of this magnitude deserve to be punished to the fullest extent of the law. IRS Criminal Investigation, along with our law enforcement partners and the United States Attorney’s Office, remain vigilant in identifying, investigating and prosecuting those individuals who seek to willfully defraud the United States Treasury and show blatant disregard to the harm caused to the victims of their schemes,” said Special Agent in Charge Henry.

This case was investigated by the United States Secret Service and the Internal Revenue Service-Criminal Investigative Division. Assistant United States Attorney Stephen Hall is prosecuting the case for the government.

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Jackson, TN – Angel Hernandez, 30, of Bells, TN, was sentenced yesterday by Chief U.S. District Judge J. Daniel Breen to 188 months in prison following his conviction on one count of possession with intent to distribute 351 grams of ice methamphetamine, announced U.S. Attorney Edward L. Stanton III.

According to facts revealed during trial, on March 12, 2013, agents with the West Tennessee Violent Crime and Drug Task Force for the 28th Judicial District, the Drug Enforcement Administration (DEA) and the Jackson Police Department executed a search warrant at the Deerfield Inn in Humboldt, Tennessee.

Hernandez was found in possession of 351 grams of ice methamphetamine. Agents also found a large amount of U.S. currency and other evidence that he intended to distribute the drugs. Agents with the task force testified that due to the purity of the methamphetamine, it had a potential street value of up to $50,000 and could have been distributed to more than one thousand individuals.

In addition to the prison sentence, Hernandez will be required to serve four years of supervised release. There is no parole in the federal system.

This case was investigated by the DEA, West Tennessee Violent Crime and Drug Task Force for the 28th Judicial District, the Milan Police Department, the Humboldt Police Department, and the Jackson Police Department. Assistant U.S. Attorney Matt Wilson represented the government.

Memphis, TN – Today, the United States Supreme Court handed the United States a unanimous victory in United States v. Castleman, a federal criminal case originating in the Western District of Tennessee, announced U.S. Attorney Edward L. Stanton III.

U.S. Attorney Stanton said, “We are extremely pleased with the Court’s decision. Castleman clarifies the law nationally and restores an important tool in the government’s toolbox. In particular, this decision means that federal prosecutors can continue to seek justice against – and protect victims from – those domestic abusers who arm themselves with firearms, not just in Tennessee but across the nation.”

Procedural history

In 2001, James Castleman was convicted of misdemeanor domestic assault in state court in Carroll County, Tennessee. The state indictment alleged that Castleman intentionally or knowingly caused bodily injury to the mother of his child.

In 2008, law enforcement agents discovered that Castleman and his wife were buying firearms from dealers and selling them on the black market. In August 2009, a federal grand jury in Memphis charged Castleman with two counts of possessing a firearm after having been convicted of a “misdemeanor crime of domestic violence,” in violation of 18 U.S.C. § 922(g)(9).

The district court granted the defendant’s motion to dismiss these federal charges in April 2010, on the basis that defendant’s prior Tennessee domestic assault conviction was not a “misdemeanor crime of domestic violence,” as that term is defined in federal law.

The United States appealed, and in September 2012 the U.S. Court of Appeals for the Sixth Circuit affirmed the district court’s ruling, with each Judge of the divided three-member panel writing separately. The government sought rehearing by the en banc Court of Appeals, but the court declined to reconsider its decision.

In May 2013, the United States filed a petition for a writ of certiorari from the Supreme Court. The Court granted that petition on October 1, 2013. The question presented before the Supreme Court was whether Castleman’s Tennessee conviction for misdemeanor domestic assault by intentionally or knowingly causing bodily injury to the mother of his child qualifies as a “misdemeanor crime of domestic violence” under federal law.

The Court’s decision

All nine Justices agreed that a Tennessee conviction for intentionally causing bodily injury to a family member constitutes a “misdemeanor crime of domestic violence” that triggers the firearms prohibition in § 922(g)(9). Thus, all Justices agreed that the Sixth Circuit’s opinion holding otherwise should be reversed.

In the lead opinion, written by Justice Sotomayor and joined by Chief Justice Roberts and Justices Kennedy, Ginsburg, Breyer, and Kagan, the Court held that the firearms prohibition for those convicted of a “misdemeanor crime of domestic violence” applies to those previously convicted of intentional domestic assault in Tennessee, as well as those convicted nationwide of similar statutes involving “the degree of force that supports a common-law battery conviction.” In part, this is because “‘[d]omestic violence’ is not merely a type of ‘violence’; it is a term of art encompassing acts that one might not characterize as ‘violent’ in a nondomestic context.”

The Court also noted that domestic abuse escalates in severity over time and that many perpetrators of domestic violence are convicted only of misdemeanors, not felonies.

Justice Scalia wrote an opinion concurring in part and concurring in the judgment. Justices Alito and Thomas concurred in the judgment.

The Court remanded Castleman’s case for further proceedings. The government’s prosecution of Castleman in the Western District of Tennessee can now proceed.

Assistant U.S. Attorney Daniel French and Criminal Appellate Chief Kevin G. Ritz represented the United States during the proceedings in the lower courts, and they, along with U.S. Attorney Stanton, attended the oral argument at the Supreme Court in January. The Office of the Solicitor General represented the government in the Supreme Court. Assistant to the Solicitor General Melissa Arbus Sherry argued the case for the United States.

Jackson, TN – At least 36 individuals were arrested today in Obion and Weakley Counties as part of a combined federal, state, and local investigation of criminal activity in the area, announced U.S. Attorney Edward L. Stanton III; ATF Special Agent in Charge Jeff Fulton; and 27th District Attorney General Thomas A. Thomas.

Twelve federal indictments were unsealed today accusing 18 individuals of a variety of charges, including illegal firearm possession, illegal drug trafficking, and counterfeiting. In addition to those charged federally, General Thomas’s office announced 22 indictments were returned naming 23 individuals on state charges.

The following individuals were charged by a federal grand jury. The potential penalties each one is facing can be found on the chart attached to this release.

John Barnett III, 27, of Martin, TN, is charged with three counts of distribution of cocaine base (crack cocaine), one count of distribution of less than 50 kilograms of marijuana, and one count of being a felon in possession of a firearm.

Edwynn Taylor, 28, of Martin, TN, is charged with two counts of distribution of cocaine and one count of possession with intent to distribute cocaine base (crack cocaine).

Charles Macklin, 41, of Martin, TN, is charged with one count of distribution of cocaine base (crack cocaine), one count of possession with intent to distribute cocaine base (crack cocaine), and one count of distribution of cocaine.

Peter Graves, 36, of Martin, TN, is charged with one count of distribution of cocaine and one count of distribution of cocaine base (crack cocaine).

Eric West, 24, of Martin, TN, is charged with two counts of distribution of cocaine and two counts of distribution of less than 50 kilograms of marijuana.

Terrence Carter, 24, of Martin, TN is charged with one count of distribution of less than 50 kilograms of marijuana.

Johnson Davis, 30, of Martin, TN, is charged with one count of distribution of cocaine.

Tony Darnell Edwards, a/k/a Tony Darnell Scott, 41, of Martin, TN, is charged with one count of distribution of cocaine base (crack cocaine) and one count of distribution of cocaine.

Emanuel Ray Harris, 36, of Martin, TN, is charged with two counts of distribution of cocaine base (crack cocaine).

James Courtney Shane, 31, of Martin, TN, is charged with one count of distribution of cocaine base (crack cocaine).

Dante Brock, 33, of Martin, TN, is charged with one count of distribution of cocaine base (crack cocaine).

Laquinte Ingram, 36, of Union City, TN, is charged with two counts of distribution of cocaine base (crack cocaine).

Cedric Jones, 34, of Bradford, TN is charged with two counts of distribution of cocaine and one count of distribution of cocaine base (crack cocaine).

Cory Gentry, 40, of Union City, TN, is charged with one count of distribution of cocaine base (crack cocaine) and one count of distribution of cocaine.

Robbin Jones, 34, of Martin, TN, is charged with one count of distribution of cocaine base (crack cocaine) and one count of distribution of cocaine.

Ricky Booker, 24, of Martin, TN, is charged with one count of distribution of cocaine.

Anthony Brown, 29, of Martin, TN, is charged with two counts of distribution of cocaine base (crack cocaine).

Christopher Mitchell, 24, and Laura Petty 27, of Union City, TN, are each charged with one count of counterfeiting Federal Reserve Notes.

More than 100 individuals from law enforcement agencies across West Tennessee assisted in the early morning takedown, including FBI, DEA, ATF, U.S. Marshal’s Service, U.S. Secret Service, Tennessee Bureau of Investigation (TBI), Tennessee Highway Patrol, 27th Judicial Drug Task Force, Martin Police Department, Weakley County Sheriff’s Department, Union City Police Department, Obion County Sheriff’s Department, Milan Police Department, Dyersburg Police Department, Jackson Police Department Special Weapons and Tactics (SWAT), and Shelby County Sheriff’s Office SWAT.

This case is being investigated by the ATF, the FBI, the TBI, the Martin Police Department, the Weakley County Sheriff’s Department, the Union City Police Department, and the Obion County Sheriff’s Department. Assistant United States Attorneys Vic Ivy, James Powell, and Matt Wilson are representing the government.

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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.