B. Don James, the man accused of defrauding dozens of people in a so called “Ponzi scheme” has been indicted by a federal grand jury charging him with over $1.8 million in wire fraud.
In a prepared news release, United States Attorney Craig S. Morford announced Wednesday that James, an insurance broker from Smithville, was indicted on fifteen counts of wire fraud. James was arrested Wednesday on a warrant issued in connection with the indictment.
The charges stem from James’ participation in a scheme to defraud investors in insurance premium financing contracts.
The indictment charges James with representing to investors that their funds would be used to purchase insurance premium financing contracts when, in fact, James knew that he would not use the funds in that manner. In addition, the indictment alleges that James told the investors that the only way for them to lose their money was if he stole it.
The indictment specifically alleges fifteen instances in which James told investors that he would place their funds in insurance premium financing contracts when he had no intention of doing so. The total funds involved in these fifteen instances is over $1.8 million.
As defined in the indictment, insurance premium financing occurs when an individual purchasing an insurance policy elects to pay the premiums over an extended period. When the insured individual makes that election, that individual typically pays an additional amount beyond the cost of the premium that would be due had the insured made the payment in full at the time that insurance coverage went into effect. Because of this payment, there is a market where insurance companies sell the contracts for extended payment policies to third parties. The third party makes the premium payment to the company at the time the coverage policy begins and receives both the premium and the additional amount in payment from the insured individual, thereby permitting the outside investor to profit from the arrangement, the insured individual to pay over an extended period, and the insurance company to receive the full premium payment at the beginning of the coverage.
The investigation into James’ conduct was led by the Federal Bureau of Investigation and Assistant U.S. Attorney Sam Williamson is leading the prosecution.
An indictment merely represents an accusation, and the defendant is presumed innocent until and unless he is proven guilty.

Five people were arrested Tuesday by the Smithville Police Department on drug charges
Chief Thomas J. Stufano says these persons, 55 year old John Braswell, 53 year old Bobby Brymer, 51 year old Michael Pack, 41 year old Vickie Dornes Marsh, and 23 year old Bradley Ferrell are accused of dealing in drugs at 208 Dearman Street in Smithville.
According to Chief Stufano, “The house had been under surveillance for over a week due to complaints that illegal activity was occurring during all hours of the day. Drivers would consistently stop by the house, pull in the driveway, and then leave 2-3 minutes later after interacting with individuals in the house or driveway. For almost a week police officers counted over 70 cars stopping by the residence. Smithville Police raided the residence after sufficient information was obtained via a variety of investigative sources and arrested Braswell, the owner of the residence. He has been charged with sale and delivery of schedule II narcotics, sale and delivery of legend drugs and possession of paraphernalia (syringes). Braswell is already under House Arrest for the same type of crime. His bond is set at $105,000. Smithville Police are also working with Probation and Parole and the State Comptroller’s Office to seize the residence under the State’s Drug Forfeiture Act.”
Brymer, who has the same address as Braswell, was arrested for sale and delivery of a schedule II narcotic.
Chief Stufano says “Brymer’s role in the sale and distribution of the illegal narcotics was to contact the buyer, collect the money, and return all proceeds back over to Braswell. His bond was set at $50,000. Brymer had just sold a schedule II narcotic to Michael Pack of 306 Bell Street in Smithville for $30.00. The money was recovered on Braswell. Pack was arrested for sale and delivery of a scheduled II narcotic as he negotiated the buy for an unknown female and was to get half of the narcotic for his payment. Bond was set at $50,000.”
As undercover police were at the residence making the arrests, Chief Stufano says a female came to the front door wanting to purchase narcotics. An undercover detective took his police jacket off and contacted the female who wanted to negotiate a drug deal. The detective also saw a syringe sticking out of the female’s jacket pocket. Police arrested the female, Vickie Dornes Marsh of 200 Green Acres Drive in Smithville and charged her with possession of unlawful drug paraphernalia. Her bond is set at $2,500
A fifth party arrested at the scene was Bradley Ferrell of 708 South Mountain Street in Smithville. He is charged with possession of drug paraphernalia. Chief Stufano says “Ferrell attempted to throw a syringe under a vehicle when police ordered him to keep his hands in plain sight”. His bond was set at $2,500.
Chief Stufano says “In checking with Probation and Parole all of the arrested parties are currently on Supervised Probation for similar drug offenses. The Smithville Police Department in cooperation with other law enforcement agencies and our citizens are committed to actively investigating all drug activities in the City. Our partnerships have afforded the citizens increased protection against these types of illegal enterprises and with continued citizen support illegal narcotics sales in our neighborhoods will stop”.

A 20 year old man lost his life and three others were injured in a Christmas night crash on Highway 56 south at Pine Creek bridge.
Dead is Juan Garcia of Smithville.
Trooper Greg Tramel of the Tennessee Highway Patrol says Garcia was driving north on Highway 56 in a 1990 Honda Accord when he crossed the center line of the road into the path of a southbound 1993 Chevy tow truck, driven by 32 year old Jamie L. Harris of Lebanon. Harris was towing a 1995 Chevy Blazer.
Harris and his wife, 32 year old Stephanie Harris of Lebanon received minor injuries in the crash and were taken by EMS to DeKalb Community Hospital for treatment.
18 year old David Ortiz of Smithville, a passenger of Garcia’s vehicle, was taken by DeKalb EMS to DeKalb Community Hospital. He was later transported by ambulance to Vanderbilt Hospital in Nashville with a broken arm, broken leg, and other injuries.
Trooper Tramel says all four people were wearing their seatbelts.
Members of the Smithville Volunteer Fire Department were called to the scene to perform extrication services. Others rendering assistance were members of the DeKalb County Volunteer Fire Department, including the Keltonburg Fire Station, First Responders, DeKalb EMS, officers of the DeKalb County Sheriff’s Department, and Trooper Brian Raymond of the Tennessee Highway Patrol.
The crash caused a traffic tie up for more than three hours. Most motorists were re-routed during the investigation and clean-up.
Garcia’s death marks the fifth traffic fatality on DeKalb County roads this year.

The Smithville Police Department has charged a local man with Robbery and Coercion of a Witness.
Chief Thomas J. Stufano says officers and detectives from the Smithville Police Department arrested 22 year old Joshua Cripps of 541 Hodges Road on Thursday.
He says the case had originally started on Wednesday night when a Smithville Food Lion employee got off work and entered his vehicle to go home. Two vehicles pulled behind and along side the victim’s vehicle blocking him from leaving the parking lot. It is reported that Cripps, who was known to the victim and driving one of the vehicles, got out of his automobile and approached the victim demanding $50.00. Cripps continued yelling at the victim as he grabbed the victim’s shirt collar and tried to pull him through the window, repeatedly striking the victim’s head on the window frame. The victim advised Cripps that he did not have any money due to it being so close to Christmas. The suspect continued roughing up the victim who stated that he felt in fear of his life and finally relinquished a $100.00 bill from his wallet. The two cars then fled the scene. The victim stated that he was fearful that the suspect would retaliate against him if the incident was reported, but he finally decided to make the complaint the following morning.
Chief Stufano says shortly before his arrest, Cripps made repeated calls to the victim stating that the incident should not be reported to the Police or the victim would be harmed. The investigation continues with additional arrests expected.
Cripps was arrested and booked into the DeKalb County Jail with a Bond of $25,000. The Probation Department notified Police that they would also be serving a No Bond Violation of Probation warrant on Cripps at the Jail.
Chief Stufano says the Smithville Police Department is committed to keeping it’s citizens safe and actively investigates all crimes of this nature. If you have information to this or any other crime you are encouraged to contact the Smithville Police Department.

One person was injured in a single vehicle traffic accident Christmas Day on Braswell Lane.
Smithville Police Chief Thomas J. Stufano says 47 year old Jeffery Allen Scheffler of 911 Short Mountain Highway, Smithville was transported to DeKalb Community Hospital where he was treated and released.
The accident occurred at approximately 4:00 p.m. in the 200 block of Braswell Lane. Chief Stufano says Scheffler was traveling too fast for conditions and he over-corrected and fishtailed, which resulted in the vehicle leaving the roadway and ending up in a drainage ditch. The front end of the vehicle had extensive damage after hitting a drainage pipe at the bottom of the ditch.
Rescue workers at the scene rendered first aid to Scheffler who had facial lacerations. Scheffler was wearing his seatbelt which may have prevented him from receiving more serious injuries.
Chief Stufano says the Smithville Police Department would like to remind drivers that this is the time of year when they need to be vigilant about poor driving conditions. Motorists should use caution when driving. Some of the hazards include black ice, standing water, high winds, and driving rain, sleet, and snow.
You are reminded to give yourself plenty of time during inclement weather, and wear your seatbelts, and when making longer trips always let someone know when you are leaving, your route of travel, and your estimated time of arrival.

Robert M. Luther of Franklin Tennessee has been appointed by the Cannon
County Hospital, LLC Board, as the new Administrator/Chief Executive Officer
for DeKalb Community Hospital in Smithville and Stones River
Hospital in Woodbury.
Luther is formerly the Senior Vice President for Regional Operations
for Attentus Healthcare, Franklin, Tennessee. He has served as Chief
Executive Officer at hospitals in New Mexico, Arizona, California, and South
Carolina. In addition to healthcare operations, Mr. Luther has extensive
experience in quality improvement, business development and physician
recruitment.
Luther has a master?s in healthcare administration from the Graduate
School of Business at the University of Colorado. He served in the United
States Navy.
He and his wife Patricia have three children and three grandchildren. He
enjoys reading, travel and golf.
Luther assumed duties with both hospitals on December 18th.
The principles in Cannon County Hospital, LLC own DeKalb Community Hospital
and Stones River Hospital in Woodbury.

Smithville Police have charged three people stemming from a domestic assault investigation on Wednesday.
Police Chief Thomas Stufano says those charged in the case are 34 year old Patsy Estes – McCoy, 40 year old Mark McCoy, and 71 year old Melvin McCormick.
In a prepared news release, Chief Stufano says “On Wednesday, police responded to a reported domestic assault at 860 Cooper Street. Upon arrival, officers found that a female juvenile had been assaulted by her mother, Patsy Estes – McCoy and her step-father, Mark McCoy leaving numerous bruises and marks on the child’s body. The child was also covered in dog food that the step-father had thrown all over the child. After the incident, the parents drove away together from the scene prior to the police response. During the investigation, the grandmother advised the officers that the child suffers from a diminished mental capacity and cerebral palsy.”
“On Friday, police detectives were able to track the mother to 701 Fisher Street at a residence owned by Melvin McCormick. Police contacted McCormick there and were advised by him that Ms. McCoy had just left.”
Chief Stufano says “during the questioning, it was apparent that McCormick was concealing the truth so officers set up a surveillance of the residence. Approximately 20 minutes passed when McCormick and Ms. McCoy came out of the front door and left in McCormick’s truck. Officers followed the vehicle in an attempt to find the husband but due to the erratic driving of the driver, the vehicle was stopped.”
Ms. McCoy was immediately taken into custody and McCormick was processed for driving under the influence of alcohol. Both were transported to the DeKalb County Jail.
Charges on Ms. McCoy include child abuse and neglect and theft of city water services. It was found that Ms. McCoy and her husband had broken and reconnected a city water meter at their residence when it was shut off for non-payment. Bond was set at $3,500.
McCormick was charged with accessory after the fact and driving under the influence. His bond was set at $6,000.
Meanwhile, Chief Stufano says police arrested Mark McCoy Thursday night when he returned to his residence and was attempting to move his belongings out.
He was subsequently charged with domestic assault, child abuse and neglect, and destruction and theft of city property and services. His bond was set at $6,000.
Chief Stufano says Smithville Police are committed to actively investigating these types of crimes and encourages all residents to report suspicious incidents to the police.

The DeKalb County Commission Monday night unanimously selected County Mayor Mike Foster as the Chairman of the Commission for the year.
Seventh District Commissioner Larry Summers was named Chairman Pro Temp.
The chairman presides over all county commission meetings. The chairman pro temp fills in for the chairman in his absence.
In other business, the commission adopted two proposed amendments to the Subdivision Regulations on second and final reading upon the recommendation of the Planning Commission.
County Mayor Mike Foster says one of the proposed amendments pertains to the design and construction of new roads in subdivision developments and the other regulates flag lots ” Roads must have a thickness of asphalt binder of two inches. This new regulation would require a wearing surface of another one and a half inches at the final completion for a total of three and a half inches of blacktop.”
“Under the flag lot regulations, there must be a minimum of 50 feet road frontage and it cannot exceed 300 feet. Flag lots must not encompass 10% of the total development. This is to prevent someone from having so many flag lots to keep from building a road.”
Another proposed amendment would revise the “Hillside Development Standards”.
Foster says the proposed change is primarily meant to stop some lot developments on the lake that are actually too steep for development.
However no action was taken on that amendment Monday night. Foster says the Planning Commission wants to make some changes in the proposal. “We had a meeting of the planning commission last Monday night and I think we have agreed there are ways to work out the problems we need solved. We will have a work session on that (issue) and we’ll invite you (county commissioners) and the planning commission to that meeting to address it.”
“The problem of the real steep lots is that they don’t provide adequate parking or sewer/septic system capacity. The planning commission will likely recommend that the homeowner be required to have a licensed engineer to lay out the foundation on lots with a 30% or greater slope.”

The Smithville Mayor and Board of Aldermen Monday night, following a public hearing, adopted a resolution seeking a $500,000 Community Development Block Grant from the Tennessee Department of Economic and Community Development.
The resolution states that the city is in dire need of a sewer system rehabilitation project due to excessive infiltration or inflow of surface water into the sewer system.
The total project is estimated to be $582,000. The city’s local matching portion would be $82,000 if the grant is approved.
Fire Chief Charlie Parker gave notice to the Mayor and Aldermen that the Smithville Volunteer Fire Department would no longer be providing extrication services at wrecks outside the city limits effective January 1st.
Parker says ” A couple of weeks ago I was informed by DeKalb County Fire Chief Donny Green that the County Fire Department had purchased some rescue equipment and wants to assume extrication service to the county as of January 1, 2007.”
Parker says “This is just to go on record that as of January 1st, the Smithville Fire Department will no longer be responsible or liable to respond to calls outside the city limits of Smithville as first call or automatic response.”
“We will continue to provide service to the City of Smithville as we have for the past 21 years. We will however respond outside the city with available personnel to requests from any agencies, including law enforcement, EMS, fire, and rescue anywhere that our services may be needed.”
Parker says “The Smithville Fire Department started rescue services to Smithville and DeKalb County in 1985. Under the leadership of then Mayor Waniford Cantrell, the city managed to purchase the Jaws of Life equipment, and with a lot of personal involvement from then Fire Chief W.J. “Dub” Keith and then Captain Buddy Parker, members of the community and the fire department, a used step van was converted into the first rescue vehicle. We have been adding or replacing some equipment ever since.”
In other business, the city board approved the employment of certified police officer Travis Bryant and water treatment plant trainee Bruce Medley.
The mayor and aldermen entered into an agreement with Charles McGaughy, doing business as Mack Air LLC, to use a portion of the main airport terminal building to make repairs and maintenance to aircraft there.
The city board also set the regular meeting dates for the calendar year 2007.
The mayor and aldermen will meet at 7:00 p.m. at city hall on the following dates: February 5th and 19th, March 5th and 19th, April 2nd and 16th, May 7th and 21st, June 4th and 18th, July 2nd and 16th, August 6th and 20th, September 17th, October 1st and 15th, November 5th and 19th, and December 3rd and 17th.
The city board will not meet on January 1st for New Year’s Day, January 15th for Dr. Martin Luther King, Jr.’s birthday observance, and on Labor Day, September 3rd.

The Tennessee Department of Education will distribute $15-million 315- thousand 586 in software vouchers to local school systems as a result of a settlement in a lawsuit against Microsoft Corporation. The class action suit alleged Microsoft used unlawful trade practices to maintain a monopoly and overcharge Tennessee consumers.
The DeKalb County School System is to received $43,448.
State Education Commissioner Lana Seivers says “We are pleased that the outcome will allow Tennessee school systems to upgrade technology for the benefit of their students and allow additional resources to be directed toward improving teaching and learning.”
Each school district will receive approximately $16.40 per student according to the district’s average daily membership (ADM) at the end of the 2005-06 school year. Local administrators may use software vouchers for current or future Microsoft operating system software such as Microsoft Windows, Microsoft Office applications and encyclopedia software and certain non-Microsoft software.
Dr. Tim Webb, Assistant Commissioner for Resource and Support Services says “The department is working diligently to help districts take advantage of these vouchers in a timely manner.”
Tennessee attorneys James Stranch of Branstetter, Stranch & Jennings, PLLC and Ted Carey of Barrett, Johnston & Parsley handled Tennessee’s case, which was one of the first cases to be filed and has resulted in one of the stronger settlements nationwide.