Former Sheriff Previously Sentenced to 50 Months; Sheriff’s Uncle Also Sentenced in Scheme
former Rutherford County Sheriff Chief Deputy of Administration was
sentenced today to 15 months in prison for operating a private
electronic cigarette company in the county jail for personal gain,
announced Acting Assistant Attorney General Kenneth A. Blanco of the
Justice Department’s Criminal Division and U.S. Attorney Don Cochran of
the Middle District of Tennessee.
Russell II, 50, of Murfreesboro, Tennessee, was sentenced today by
Senior U.S. District Judge Marvin E. Aspen of the Northern District of
Illinois, sitting by designation in the Middle District of Tennessee,
who also ordered Russell to pay $52,500 in restitution and to forfeit
$52,234.41, an amount equal to all proceeds he received from JailCigs.
Russell, along with former Rutherford County Sheriff Robert F. Arnold,
41, of Murfreesboro, Tennessee, and Arnold’s uncle, John Vanderveer, 59,
of Marietta, Georgia, were named in a 14-count indictment in May 2016
charging them with honest services fraud, mail fraud, wire fraud,
bribery concerning federal programs, extortion under color of official
right, obstruction of justice and conspiracy.
his plea, Russell admitted to forming JailCigs along with Arnold and
Vanderveer in 2013; using Arnold’s official position as Sheriff of
Rutherford County to benefit JailCigs by allowing the company’s
electronic cigarettes to come into the Rutherford County jail as
non-contraband and to be distributed by county employees; taking steps
to disguise their involvement in the company; and misrepresenting the
benefits that Rutherford County was supposedly receiving from JailCigs.
guilty in January 2017 and was sentenced in May 2017 to 50 months in
prison and ordered to pay $52,500 in restitution and to forfeit
$66,790. Vanderveer was sentenced in September 2017 to one year plus
one day in prison for attempting to tamper with a key witness in the
investigation by asking her to destroy incriminating documents related
to the scheme. Vanderveer was ordered to pay $52,500 in restitution.
The FBI and
Tennessee Bureau of Investigation investigated the case. Trial
Attorneys Mark J. Cipolletti of the Criminal Division’s Fraud Section
and Andrew Laing of the Criminal Division’s Public Integrity Section and
Assistant U.S. Attorney Cecil W. VanDevender of the Middle District of
Tennessee prosecuted the case.