PRESS RELEASE

CONTACT: Jim Vines
United States Attorney

Sunny A.M. Koshy
Assistant U.S. Attorney
615-736-2141/3121

SPRINGFIELD COUPLE PLEAD GUILTY IN MONEY LAUNDERING CASE
WHICH LED TO SPRINGFIELD'S LARGEST CRACK COCAINE SEIZURE

Nashville, TN - July 3, 2003 - Jim Vines, United States Attorney for the Middle District of Tennessee, announced that Reginald D. King, age 35, and Barbara Shantell Warfield, age 26, formerly of 1808 Leota Street, Springfield, Tennessee, pleaded guilty today as a result of a money laundering investigation that led to the largest crack cocaine seizure in Springfield history.

According to testimony by IRS Supervisory Special Agent Paul Conner at the plea hearing today, King and Warfield had been dealing crack cocaine from 1808 Leota Street in Springfield where they both lived. After some robberies at that house, King and Warfield decided they wanted to buy a home in another location and decided to buy a house located at 3521 Country Way Road, Antioch, Tennessee. This house was to be deeded solely in Warfield's name since King was trying to hide his drug proceeds. Since Warfield did not have sufficient legitimate employment history or credit to qualify for a mortgage, King and Warfield agreed to create bogus documents so Warfield could qualify for a mortgage. Warfield had false Internal Revenue Service Forms W-2 prepared to show she had the income necessary to qualify for the mortgage. These false W-2 forms claimed that she earned approximately $54,000 working for Tender Hearts Day Care in Springfield, Tennessee, in 1999 and 2000. Deborah Chatman, Warfield's cousin and the owner of Tender Hearts Day Care, falsely verified these wages on April 27, 2001, to the mortgage company in order for Warfield to obtain the loan. According to IRS records, Warfield's federal tax returns reflect a total of only $16,844 in income from 1997 to 2000.

On May 24, 2002, Warfield closed on the Antioch house, paying a total of $134,628.17 by using the proceeds from the fraudulently acquired $106,250 mortgage and an additional downpayment which she made with several small cashier's checks she had purchased with cash drug proceeds in a manner to evade federal currency transaction reporting requirements. According to Special Agent Conner, banks and other financial institutions are legally required to report large cash transactions to the Internal Revenue Service. Within about 10 months, Warfield deposited over $120,000 of cash drug proceeds into a bank account and used that money to pay the principal and interest on the mortgage. Warfield was receiving state public assistance during this time and concealed her ownership of this house from Tennessee's Department of Human Services.

On April 10, 2002, federal search warrants were executed at 1808 Leota Street in Springfield, and at 3521 Country Way Road in Antioch, Tennessee. Approximately 589 grams (over 1 pound) of crack cocaine and five firearms, including an Intratec Tec-9 semi-automatic assault rifle, were seized during the search warrants. The crack seizure was reportedly the largest single seizure of crack cocaine in Springfield history.
King and Warfield both pleaded guilty to money laundering charges, and have agreed to forfeit the house at 3521 Country Way Road. King also pleaded guilty to possession of crack cocaine with intent to distribute, and to possessing firearms in furtherance of drug trafficking. King has a previous robbery conviction in Springfield, and a previous drug trafficking felony conviction in California. King and Warfield will be sentenced in about three months Chief U.S. District Judge Robert Echols.

This Organized Crime Drug Enforcement Task Force (OCDETF) investigation was conducted by IRS-Criminal Investigation, 20th Judicial Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Springfield Police Department. Assistant U.S. Attorney Sunny A.M. Koshy is prosecuting the case.