B. Don James is going to federal prison.
U.S. District Court Judge Todd Campbell Friday afternoon in Nashville sentenced James to a total of ninety seven months (8 years and 1 month) in prison on each of fifteen counts of wire fraud totaling $1.8 million dollars, the minimum sentence under the plea agreement’s advisory guideline range The sentences are to run concurrently or together as one sentence.
James, who pleaded guilty to all charges in March, must report to federal prison by 2:00 p.m. on June 25th.
After serving his sentence, James will be on supervised probation for another two years on each count to run concurrently.
Special conditions of his supervision require James to make restitution to the victims in the amount of $8,808,716, but any amount the victims have received or may receive from last year’s circuit court judgment against Douglas Hodges will be subtracted from the $8.8 million dollar restitution figure.
James must also pay an assessment of $1,500 in criminal monetary penalties.
While each count carries a maximum penalty of twenty years imprisonment Judge Campbell announced during the plea hearing in March that the anticipated recommended sentencing range, under the plea agreement, was 97 months (8 years and 1 month) to 121 months imprisonment (10 years and 1 month).
Before the sentence was imposed by Judge Campbell Friday, James addressed the court saying ” I apologize to my family for the embarrassment. I apologize to all these people (investors). Why it happened, I don’t know.”
In the “Sentencing Memorandum” filed with the court prior to Friday’s hearing, prosecutors argued that “between 1995 and 2004, James never earned less that $60,000 a year and earned over $80,000 in 2003. Assuming these earnings were legitimate, James had no financial need to engage in criminal conduct to support himself. The calculated and lengthy nature of this crime, and James’ lack of any excuse for committing it, both weigh in favor of a serious sentence.”
Assistant U.S. Attorney Sam Williamson told the court Friday that ” this is an extremely serious offense and by his own admission, James admits he stole over eight million dollars. He was a successful businessman who should have known better.”
James’ attorney, Hilton Conger asked for a lesser sentence than 97 months, possibly a two to three year term. Conger insisted that a sentence of 97 months to 121 months would amount to a life sentence for James, in view of his poor health. Conger says James could still be a productive member of society and should be allowed to continue working so he could repay the victims.
Conger further stated, in his motion for Downward Departure” that James was very cooperative with the investors’ attorney H. Naill Falls, in their civil case against Hodges. He cooperated and assisted his victims in pursuing recovery from an individual who has aided and abetted and unjustly benefitted from James’ scheme. Falls, attorney for 70 of the investors, credits James’ cooperation and testimony as being significant in prosecuting the claims which ultimately resulted in a verdict of $8 million, which represented the full amounts invested with James. Attorney Falls is of the opinion the investors will recover the majority of their funds as a result of the verdict obtained.”
Judge Campbell agreed with the prosecutors stating that “This was a very serious crime and that incarceration is necessary. The seriousness of the crime outweighs (James) having freedom and the ability to make restitution. The crime was very lengthy, complicated, and involved repeated conduct.”
Five of the victims (investors) testified during Friday’s hearing including Donnette Pack, her father Donald Pack, Haskel Hawkins, Jr., Ronnie Mac Davis, and Nell Beshearse. Ms Beshearse also read a written statement by Lewis Knowles, another victim in the case.
Donnette Pack told that court that ” I cannot describe to you the pain and anguish Mr. James has put on our family. He has confessed to the crime but has shown no remorse. He has wreaked havoc on so many families and diminished our quality of life. He deserves no leniency and should serve the maximum sentence allowed by law.”
Her father, Donald Pack testified that “He (James) has destroyed my family and took what I worked fifty years for.”
Haskel Hawkins, Jr. said he lost his $1.9 million dollar investment or $2.5 million including interest because of James. ” He totally destroyed my life and my family’s lives. There is no way to describe the pain and suffering he has caused. I believe he should pay us the principal, interest, and punitive damages, or spend the rest of his life in prison. He’s enjoying his life, but I can’t enjoy mine anymore. I was going to send my grandchild to college, but I can’t now. He took everything I ever worked for.”
After the investment scheme became public, Ronnie Mac Davis testified that he talked with James who told him that “I wouldn’t blame you if you took a bat and beat me. I knew when I took your money it was gone.”
Nell Beshearse told the court that she made an investment with James only a few months before his operation went belly up, and lost money like many of the other investors. She said James assured her that she couldn’t lose unless he took the money and went off to some lsland.
In a written statement read by Beshearse, Lewis Knowles wrote that “I would have trusted him (James) with my life. I had known him for years. I would never have believed that he would have been a party to such a scheme. He robbed us and took our dignity and the ability to take care of ourselves in our later years.”
Three people testified on behalf of James including his son-in-law and family physician Dr Kevin Rhody; his employer, local nursery owner James Pirtle; his long time friend and clergyman Terry Little; and another friend of the family, Janice Stewart.
Dr. Rhody testified that James suffers from multiple health problems including coronary artery disease, hypertension, hernia, abdominal aortic aneurism, and a pre-cancerous lesion of the colon, among others. He says James is a high surgery risk and that he will have a significant (medical issue), if not a fatal outcome, in five to ten years “on the lucky side”.
After James went out of business, Pirtle testified that he hired James to work for him as a salesman in his nursery operation. Pirtle says James has learned a lot about the nursery business and has developed into a remarkably good salesman. Pirtle says other salesmen who work for him have made $300,000 to $400,000 a year and believes James has the ability to earn that kind of income. Pirtle says he believes in James’ honesty.
Terry Little testified that he is a very close friend of the James family and that when Donny lost his home, he allowed James and his wife to move into a home he owns, next door to him, rent free. James and his wife still reside there. Little told the court that up until this matter came up, everyone in the community thought of James as a model citizen. He says James sponsored local athletic teams, supported his church, and did everything he could to make the town and county a better place to live. Little says James is still a good family man and could still be a productive citizen.
Janice Stewart testified that James is a long time friend of her family and that he took special interest in her brother when he played sports many years ago, serving as a mentor and supporting him financially as a sponsor on ball trips, etc. Stewart says Donny is a kind man and goes the extra mile to help people in need. She says he still has a lot to give.
In March, Investigator Terry Hembree of the 13th Judicial District presented a summary of the prosecution’s case against James, led by the Federal Bureau of Investigation and Assistant U.S. Attorney Sam Williamson.
Hembree told the court that “From on or about 1997 up to and including on or about 2004, James defrauded investors by telling them that their funds would be used to purchase premium financing contracts when in fact James did not intend to use the funds in that manner. In fact, from at least 1997, Investors Insurance Finance did not invest any funds in premium financing contracts.”
James operated an insurance-related business known as “B. Don James & Son’s Insurance” and another business known as “Investors Insurance Finance” which was brokering investment in insurance premium financing.
According to Hembree, ” James made additional representations to potential investors that if they invested their funds with Investors Insurance Finance, he would invest their funds in premium financing contracts, that the investors would receive fixed and guaranteed rates of return, and that the only way that the investors could lose the money that they invested with Investors Insurance Finance would be if James himself stole it.”
“In fact, James knew that there were no guaranteed rates of return because he was not investing the money in the manner promised, and that even if he had invested the money that way, he could not have guaranteed the rates of return promised. In order to convince his investors that their money was invested in the manner James represented, he made payments to his investors which he represented to be interest payments accruing as a result of premium finance contracts that James had purportedly purchased on the investors’ behalf when, in actuality, the funds used to make the supposed interest payments were other investors’ funds that James was using to disguise the fact that he had not invested any funds in premium financing contracts.”
Hembree explained that on at least fifteen occasions, James caused interstate wire communications to be transmitted from Tennessee to Alabama in order to make deposits of investors funds totaling more than $1.8 million dollars although the total loss caused by the instant fraud, including conduct not charged in the indictment, exceeded $7 million dollars. In addition, more than 50 people were defrauded by James’ scheme.”
The wire fraud apparently amounted to James making deposits in a local bank, which were later electronically transferred to a bank location in another state.

DeKalb County High School has a new girls basketball coach.
Director of Schools Mark Willoughby and DCHS Principal Kathy Hendrix confirm that John Michael Shockley will sign a contract to take over the program from Amy Tobitt, who has resigned as coach after two seasons.
Shockley, who is from Winchester, comes to DeKalb County from Loretto High School where he served as girls basketball coach.
Shockley will also be taking over as head coach of the DeKalb Saints Football Program.
Shockley graduated from White County High School in 1975. He then attended the Aquinas Junior College in Nashville for one year followed by three years at Tennessee Tech, where he earned a Bachelor’s Degree in Secondary Education-Social Sciences and did M.S. work with 24 semester hours toward his ASED Degree and one semester hour toward certificate renewal.
His coaching experience includes sixteen years as a high school head girls and boys basketball coach, six years as a head middle school boys basketball coach, six years as an assistant boys basketball coach at White County High School, ten years as a high school head baseball coach, two years as a high school head softball coach, six years as a middle school football assistant, and two years as a high school head golf coach.
His achievements are as follows:
1975- Earned a basketball coach to Aquinas Junior College
1987- Won the Middle School State Basketball Tournament
1979-80 and 1980-81- assisted the White County Boys to the State Tournament
1991- Girls State Runner-Up in the State Tournament as Head Coach at White County High School
1992- Coached the Tennessee Girls All Stars versus Georgia
1992-93- Won 30 plus games and went back to the State Tournament
1993- Won the school’s first Regional Tournament in any sport in Triple-A
Shockley’s basketball record is 402 wins and 253 losses.

Smithville Police were busy Tuesday with numerous investigations leading to multiple arrests and the recovery of items taken form local merchants. The arrests included Theft Under and Over $500.00, extensive Credit Card Fraud, Sales and Delivery of Narcotics, DUI and Child Endangerment.
Chief Thomas J. Stufano says Smithville Police, working in cooperation with area merchants and corporate security from a credit card company, were able to positively identify 20 year old Nicholas Mongello of 1222 College Street, in Smithville as the person responsible for stealing a victim’s purse from the Walmart Shopping Center.
Chief Stufano says Mongello, who worked for Walmart, had taken the purse from the victim while she placed bags of groceries in her car in the parking lot. Walmart corporate security, with the assistance of the Store Manager Matt Ciramella, was able to review closed circuit video showing the incident which aided in the investigation. The case then snowballed as Investigators and auditors found that Mongello had been stealing large denominations of cash from the store’s cash drawers and concealing the money in his clothing. Contact was also made with the victim’s Credit Card Company and a review of account activity disclosed that Mongello had made numerous purchases from other area merchants with the stolen credit card. The merchandise was then taken to Mongello’s apartment.
Chief Stufano says investigators learned that Mongello and his roommate had tried to conceal the thefts by returning some of the items purchased and obtaining cash back instead of crediting back the card account.
Investigators were able to recover a large amount of stolen items at Mongello’s apartment which included the victim’s purse and ID, a new large screen HD TV, Surround Sound Stereo System, lamps, pots/pans, dishes etc. The stolen credit card was found in Mongello’s wallet at the time of arrest. Mongello was transported to the DeKalb County Jail on a $7,500 bond. The investigation is continuing and additional charges are pending upon notification of the numerous victims in the case.
Meanwhile 39 year old Troy Bain of 420 Hayes Street in Smithville was arrested Tuesday. Chief Stufano says Bain had been cutting across a field near Hayes Street and Gentry Avenue and acting suspicious by trying to conceal his face and then looking back to see if officers, who were on patrol in the area, had spotted him. As the officers approached Bain, he attempted to run and threw a clear plastic baggy onto the ground. He was quickly stopped and officers found in the baggy over (20) Hydrocodone pills. Due to the amount and type of pills, Bain was arrested for Sale and Delivery of Narcotics and transported to the DeKalb County Jail under a $10,000 bond.
25 year old Chasity Phillips of 350 Shady Lane in Smithville was arrested Tuesday for DUI and Reckless Endangerment. Officers stopped Phillips due to her driving erratically and crossing the centerline numerous times. Sobriety tests were administered but Phillips was unable to stand due to her intoxication. Her five month old baby, who was also in the vehicle, was subsequently released to a family member. Phillips was arrested for DUI and Child Endangerment and transported to the DeKalb County Jail under a $5,000 bond.
Chief Stufano says “Smithville Police are actively investigating all crimes committed in the city and value the support and response the community is lending in helping develop leads and identify criminal activity in the neighborhoods. If you have information that may help identify suspicious activity please call us at 615-597-8210. As always your information will be treated confidentially.”

Governor Phil Bredesen announced today an Aeronautics Grant in the amount of $800,000 has been awarded to the Smithville Municipal Airport in Dekalb County to assist with improvements to that facility.
General aviation airports are critical to the economic development of communities across the state, said Governor Bredesen. These airports provide quick access for businesses, serve as reliever airports for local flight centers and are important shipping hubs. In order to stay competitive these airports must be kept up to date.
The grant funds will be used for the construction of a new T-hangar, taxiway and apron.
This grant will help this airport meet the growing needs of the community it serves, added enator Mae Beavers. I’m pleased the state could assist with this project.
This is exactly the kind of investment I hope the state continues to make in our general aviation transportation system, commented Representative Frank Buck. It is extremely important to this area’s economy.
Tennessee Department of Transportation Commissioner Gerald Nicely explained that the grants are made available through the department’s Aeronautics Division.
This Division administers federal and state funding to assist in the location, design, construction and maintenance of Tennessee’s diverse public aviation system, reported Nicely. We are pleased to be able to provide millions of dollars each year for the betterment of our airports through our grant programs.
Grant applications are reviewed by the Tennessee Aeronautics Commission (TAC), which is a five member board charged with policy planning and with regulating changes in the state airport system plan.
These grants can have a significant impact on the future of a general aviation airport and its economic contributions to our state,” said TAC Chairman Lonnie Strunk. “Our board examines the applications carefully to ensure that the funds will be put to good use.”
The TDOT Aeronautics Division also has the responsibility of inspecting and licensing the state’s 126 heliports and 75 public/general aviation airports. General aviation includes all aircraft not flown by commercial airlines or the military. The Aeronautics Division also provides aircraft and related services for state government executives, staffing for the Tennessee Aeronautics Commission, and numerous educational support programs. The division’s offices include Administration, Finance & Grant Management, Engineering & Program Development, Flight Services, and Planning & Programming.