Wednesday, September 30, 2009

Over One-third of a Million Dollars of Forfeited Funds Shared With Local Law Enforcement

[CHATTANOOGA, Tenn] On Wednesday, September 30, 2009 at 2:00 p.m., the United States Attorney’s Office for the Eastern District of Tennessee held a press conference at the United States Attorney’s Office in Chattanooga, Tennessee to acknowledge the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), and Drug Enforcement Administration (DEA), as well as local and state law enforcement agencies’ participation in the investigation and forfeiture of property in United States v. Delgadillo, Case No. 1:07-CR-83 and United States v. Hendricks, Case No. 1:04-CR-36, highlights of which are outlined below.

The following agencies received equitable sharing totaling more than $352,685.94.

Catoosa County Sheriff’s Department $8,249.46
Whitfield County Sheriff’s Department $8,249.46
Soddy Daisy Police Department $162,593.87
Georgia Bureau of Investigation $96,243.70
Georgia State Patrol $10,999.28
Hamilton County Sheriff’s Department $66,350.17

United States v. Delgadillo:

On August 14, 2007, a superseding indictment was filed in Chattanooga, Tennessee, charging Aniceto Delgadillo and Enrique Delgadillo, among others, with conspiracy to manufacture, distribute and possess with intent to distribute fifty (50) grams or more of methamphetamine and five hundred (500) grams or more of cocaine hydrochloride, Schedule II controlled substances, in violation of Title 21, United States Code, Sections 846, 841(b)(1)(A) and 841(b)(1)(B). The indictment also included forfeiture allegations, providing for the forfeiture of $274,982.00 in U.S. currency seized from Aniceto and Enrique Delgadillo.

The agencies participating in this investigation included ATF, Georgia Bureau of Investigation (GBI), Georgia State Patrol (GSP), Catoosa County Sheriff’s Department (CCSD), Whitfield County Sheriff’s Department (WCSD), and Soddy-Daisy Police Department (SDPD). The investigation was initiated by the SDPD and ATF investigation into the methamphetamine distribution activities of Mary Blancett from Soddy Daisy. During the course of the investigation, agents learned that her source of supply was the Delgadillo brothers, who resided in Dalton, Georgia. The GBI was invited to join in the investigation and those agencies worked together for the duration of the investigation. The CCSD provided technical support during the course of the investigation, including the utilization of recording devices for confidential informants. The WCSD assisted with surveillance of targets during the investigation and participated with ATF, GBI, CCSD, and GSP in the execution of the search warrant on June 29, 2007, which yielded approximately $274,982.00 in cash, two pounds of methamphetamine, half a kilogram of cocaine, and other contraband. The GSP participated in the execution of the search warrant and the arrest of the Delgadillo brothers.

Based on information obtained during the investigation, as well as the recovery of contraband and undercover purchases of methamphetamine, cocaine, and firearms, it is estimated that the Delgadillo’s organization was responsible for between 50 and 100 pounds of ice methamphetamine and between 50 and 100 kilograms of cocaine. Additionally, agents learned during the investigation that the Delgadillo brothers frequently traded narcotics for firearms and attempted to then sell the firearms they obtained.

The following defendants were charged, found guilty, and sentenced as outlined below:

Aniceto Delgadillo -- 151 months in prison and 5 years supervised release
Enrique Delgadillo – 135 months in prison and 5 years supervised release
Mary Blancett – 120 months in prison and 5 years supervised release
William Perkins – 121 months in prison and 5 years supervised release
Melissa Simon – 130 in prison and 8 years supervised release

On May 28, 2009, a Final Order of Forfeiture was filed ordering the forfeiture of a money judgment in the amount of $274,982.00.

United States v. Hendricks:

A second superseding indictment was filed in Chattanooga, Tennessee, on December 15, 2004, charging Charles Hendricks and others with conspiracy to distribute cocaine hydrochloride, a Schedule II controlled substance, in violation of Title 21, United States Code, Sections 846, 841(b)(1)(A) and 841(b)(1)(C). The indictment also included forfeiture allegations, providing for the forfeiture of real property located at 10432 Lee Highway, Chattanooga, Tennessee.

The agencies involved in this investigation included ATF, FBI, DEA, SDPD, and Hamilton County Sheriff’s Department (HCSD). The investigation was initiated by ATF and SDPD into the marijuana and cocaine distribution activities of Terry Penney of Soddy Daisy. During the course of the investigation, agents learned that Penney’s main source of supply for cocaine and marijuana was the Hendricks brothers. At the beginning of the investigation, ATF and SDPD worked with DEA to investigate Penney’s sources utilizing confidential informants and undercover officers. Agents were able to make controlled purchases of both marijuana and cocaine from members of the organization. Eventually, a search warrant was obtained for Penney’s residence in Soddy Daisy. The HCSD, SDPD, and ATF participated in the execution of the warrant at that residence. During execution of the search warrant, Penney shot Special Agent Paris Gillette in the head, seriously wounding him. He also shot detectives Marty Dunn and Mark King with the HCSD. Because the shooting involved law enforcement victims, the FBI became involved in the investigation of the shooting. The investigation also centered on the specific narcotics distribution of the Hendricks brothers and focused on property that they used to store and sell cocaine and marijuana. This property became the subject of the forfeiture in this case.

Based on information obtained during the investigation, undercover controlled purchases of narcotics, as well as the recovery of narcotics, it is estimated that the Hendricks’ organization was responsible for the distribution of hundreds of kilograms of cocaine and thousands of pounds of marijuana. Additionally, agents recovered numerous firearms and explosive devices possessed by members of the organization.

The following defendants were charged, found guilty, and sentenced as outlined below:

Charles Hendricks-- 5 months in prison, 5 months home detention, and 3 years supervised release
Joseph Hendricks – 24 months in prison and 3 years supervised release
Terry Penney – 895 months in prison and 5 years supervised release
Angela McCormick -- 41 months in prison and 5 years supervised release
William North -- 37 months in prison and 5 years supervised release
Davota Bowman --13 months in prison and 5 years supervised release
Ed Brown -- 170 months in prison and 5 years supervised release
Vivian Cook-- 211 months in prison and 10 years supervised release
Juanita Pettyjohn – 48 months in prison and 5 years supervised release
Randall Dyer – 180 months in prison and 5 years supervised release

On January 22, 2007, a Final Order of Forfeiture was filed ordering the forfeiture real property located at 10432 Lee Highway, Chattanooga, Tennessee.

To date, the Eastern District of Tennessee has shared $766,099 with law enforcement agencies through the equitable sharing program.