Four Sentenced to Lengthy Prison Terms for Their Roles in Drug Trafficking Ring

Brian Christopher HARRIS, 28, of Augusta; Marsignor Cornelius WHITE, 26, of Augusta; Derrick D. KING, 32, of Millegeville, Georgia; and Jaimere PROSSER, 27, of Newark, New Jersey, were sentenced this week by United States District Judge J. Randal Hall to serve prison terms of 14 years or more in federal prison on charges of drug trafficking.

United States Attorney Edward J. Tarver said, “These defendants directly participated in the distribution of significant quantities of cocaine throughout the Augusta area. These sentences demonstrate that those who distribute cocaine and other dangerous drugs in our communities will serve long prison sentences.”

HARRIS was sentenced to more than 14 years (175 months) in prison to be followed by five years of supervised release. WHITE was sentenced to more than 15 years (188 months) in prison to be followed by five years of supervised release. KING was sentenced to more than 18 years (220 months) in prison to be followed by five years of supervised release. PROSSER was sentenced to 25 years (300 months) in prison to be followed by eight years of supervised release.

United States Attorney Tarver noted that these sentences relate to a 14-month federal investigation of a cocaine trafficking ring in the East Augusta area including Augusta’s Dogwood Terrace Public Housing Community. During the investigation, government agents seized significant quantities of crack and powder cocaine, nine firearms and over $55,000 cash. The investigation was conducted by the FBI’s Safe Streets Task Force which consists of officers and agents from the FBI, the Richmond County Sheriff’s Office, the Columbia County Sheriff’s Office, the GBI, and the Georgia State Board of Pardons and Paroles. ATF, DEA and the United States Marshal’s Service also participated in the investigation.

Other defendants who pleaded guilty and are awaiting sentencing include: Reginald Darrell BEALE, 28, of Hephzibah, Georgia; Latria Grenise SMITH, 26, of Hephzibah; Mark JONES, 52, of Augusta; Sylvester Ruben LEWIS, 33, of Augusta; and Sequoyah ELAM, 28, of Lincolnton, Georgia.

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Head of Atlanta-Based Foreign Exchange Brokerage Firm Sentenced to Prison for Defrauding Investors

CARLIN KING, 43, of Decatur, Georgia, was sentenced July 17 by United States District Judge Marvin Shoob to serve 3 years in federal prison on a charge of wire fraud, in connection with his operation of the foreign exchange investment house “Hanover Stevens” based in Atlanta.

United States Attorney David E. Nahmias said of the case, “This case involves yet another scheme by an investment professional who earned the trust of many individuals and then defrauded them out of their savings. Whether there are $2 million or $200 million in losses, these are devastating crimes to the victims. This fraudster now will join many others in federal prison.”

KING was sentenced to 3 years in prison to be followed by 3 years of supervised release, and ordered to pay restitution in the amount of $2.5 million. KING pleaded guilty to the charge on February 23, 2009.

According to United States Attorney Nahmias and the information presented in court: KING was a professional securities broker, who traded equity stocks and commodities for clients at various financial firms, mostly in Atlanta, since the 1990s. In approximately 2002, KING founded and began operating “Hanover Stevens,” a retail foreign exchange brokerage firm. Beginning in approximately February 2006, however, KING stopped actually investing client money in foreign exchange transactions. The evidence shows he began lying to clients about the returns their investments were supposedly making, and he began operating a fraudulent “Ponzi” scheme. Instead of investing client money in the foreign currency markets as he promised, KING began using those funds to pay Hanover Stevens’s increasing operating expenses, investors who had requested distributions, and substantial personal expenses (including living expenses at luxury hotels). To create the impression that their investments were profitable, KING provided account statements to his investors containing fabricated numbers as to the balances in their accounts and supposed investment gains. Because there were no actual investment gains – and because the balances being reported to investors were fabricated – the only way that KING could pay any requested distributions was to use newly-invested funds from new investors.

By December 2007 – when the unsustainable scheme collapsed – the losses to the investors exceeded $2.5 million.

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