Kaufman County man sentenced to 20 years in federal prison for defrauding investors of at least $2.7 million in the Eastern District of Texas
LUFKIN, Texas – A 43-year-old Chicago man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Frederick Mitchell pleaded guilty on Dec. 19, 2014 to conspiracy to possess with intent to distribute cocaine and use of an interstate facility in aid of racketeering and was sentenced to 84 months in federal prison on Apr. 8, 2015 by U.S. District Judge Ron Clark.
According to information presented in court, on July 6, 2014, Mitchell and a co-defendant, Henry Korvette Bams, were stopped for a traffic violation by the Texas Department of Public Safety on US Highway 259 in Nacogdoches County, Texas. The officer conducted a search of the vehicle and seized approximately $253,341 in cash and a small quantity of marijuana. Both men were eventually released on bail on July 9, 2014. On July 22, 2014, Bams and Mitchell were stopped again for a traffic violation by Arkansas State Police in Hot Springs County, Arkansas, on Interstate Highway 30. The officer received consent to search the vehicle and discovered approximately ten kilograms of suspected cocaine located inside a hidden compartment within the vehicle. Two bank deposit slips were also discovered within the vehicle. On Aug. 1, 2014, agents with the Internal Revenue Service and the Drug Enforcement Administration executed a seizure warrant on the bank account and seized approximately $135,015.14 in suspected drug proceeds. Bams is awaiting trial on pending charges.
This case was investigated by the Internal Revenue Service-Criminal Investigation, the U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, and the Texas Department of Public Safety, and prosecuted by Assistant U.S. Attorney Baylor Wortham.