Federal Bureau of Investigation - Memphis Field Division - Press Release

U.S. Department of Justice

United States Attorney's Office
Western District of Tennessee

800 Federal Office Building Ph: (901) 544-4231
Memphis, Tennessee 38103 Fax: (901) 544-3054
TTY: (901) 544-3054

PRESS RELEASE

FOR IMMEDIATE RELEASE

FOR FURTHER INFORMATION
CONTACT: LEIGH ANNE JORDON
(901) 544-4231

December 11, 2006

Indictments and Civil Forfeiture and Nuisance Actions Concerning Memphis Adult Entertainment Clubs

Memphis, TN - David Kustoff, United States Attorney for the Western District of Tennessee, William L. Gibbons, District Attorney General for the 30th Judicial District of Tennessee, Larry Godwin, Director of Police Services for the City of Memphis, My Harrison, Special Agent in Charge of the FBI’s Memphis Division, Cleve Daniels, Special Agent in Charge of Internal Revenue Service Criminal Investigation, and David G. Jolley, United States Marshal for the Western District of Tennessee, announced the following enforcement actions involving two Memphis adult entertainment clubs, Platinum Plus and Tunica Caberet:

● Civil complaints were filed in the United States District Court seeking the forfeiture of Platinum Plus, located at 2514 and 2518 Mt. Moriah Road, Memphis, Tennessee; and Tunica Caberet, located at 5599 Highway 61 South, Memphis, Tennessee. The forfeiture actions are based on 21 U.S.C. § 881(a)(7), which provides for the forfeiture of any real property used to commit, or to facilitate the commission, of unlawful narcotics trafficking. On December 9, 2006, pursuant to seizure warrants issued in connection with the complaints, FBI agents seized the two clubs, and custody of the clubs was transferred to the United States Marshals Service. If the forfeiture actions are successful, the United States will take the real property, and the clubs will not reopen.

● Petitions for abatement of nuisances were filed in Shelby County General Sessions Court against (1) Tunica Caberet, Jason Youngblood (alleged in the petition to be the owner of Tunica Caberet) and Ralph Lunati (alleged to be a part owner of Tunica Caberet); and (2) Platinum Plus and Ralph Lunati (alleged in the petition to be the owner of Platinum Plus). The petition against Platinum Plus and Lunati includes an application for a contempt hearing based on violations of a 2005 Consent Order resulting from a prior nuisance action against Platinum Plus.

● Indictments were returned by a federal grand jury charging eleven defendants with narcotics violations. Ten defendants were charged with narcotics distribution offenses in violation of 21 U.S.C. § 841(a)(1). Two of those defendants were also charged with carrying firearms in relation to drug trafficking crimes in violation of 18 U.S.C. § 924(c). One of those defendants, Jason Youngblood (alleged in the indictment to have managed and controlled Tunica Caberet), is charged with making the property at Tunica Caberet available for distributing and using narcotics in violation of 21 U.S.C. § 856. Arrests were made on December 9, 2006. A chart summarizing the federal indictments and the penalties for the charged offenses is attached to this press release.

● Indictments were returned by a state grand jury charging 58 defendants, primarily with narcotics offenses. Arrests were made on December 9, 2006.

● Also on December 9, 2006, federal search warrants were executed at Platinum Plus and Tunica Caberet and at the office and residence of Ralph Lunati.

These enforcement actions are the result of a two year Memphis Police Department undercover operation, and detailed allegations concerning this investigation are set forth in the affidavits supporting the federal forfeiture complaints and in the state court nuisance petitions. As alleged in the forfeiture affidavits, the Memphis Police departments used several undercover officers, including two who are identified by numbers in the affidavits. It is alleged that these two officers made numerous undercover narcotics purchases on the premises of Platinum Plus and Tunica Caberet, and a significant number of these purchases were made during business hours from dancers and other employees of these clubs. The narcotics sales alleged in the affidavits include sales of cocaine, crack cocaine, ecstacy and methamphetamine. The affidavits allege that undercover narcotics purchases at Platinum Plus began in February 2005 and continued through September 2006, and undercover narcotics purchases at Tunica Caberet began in April 2005 and continued through August 2006. It is also alleged that, in two instances, Jason Youngblood, the owner--operator of Tunica Caberet, accepted payments from an undercover officer to allow drug trafficking to take place inside his club.

The forfeiture affidavits also describe how, in 2005, the Memphis District Attorney General’s Office brought a nuisance action against the club based in part on these documented instances of drug trafficking, putting Platinum Plus owner Ralph Lunati on notice that illegal drug sales were taking place in his establishment. According to the affidavits, Platinum Plus was allowed to re-open under a consent decree, which Lunati signed on behalf of Platinum Plus. In the consent decree, Lunati agreed to take steps to stop drug activity, as well as acts of prostitution and lewd conduct, that had been taking place within the club. It is further alleged that, after a brief hiatus, during which dancers made drug sales in other locations, drug trafficking continued unabated inside Platinum Plus. The forfeiture affidavits and the nuisance petition concerning Platinum Plus allege numerous narcotics purchases by the undercover officers on the premises of Platinum Plus after the consent decree was entered. The nuisance petitions concerning both clubs also allege that live-sex shows and prostitution occurred at the clubs, and several instances witnessed by undercover officers are alleged. The petition concerning Tunica Caberet lists live-sex shows from January 2006 through September 2006. The petition concerning Platinum Plus lists live-sex shows from March 2005 through October 2006.

This multi-agency enforcement effort is being referred to as “Operation Last Call.”

The federal criminal and civil proceedings are being handled by Assistant United States Attorneys Scott Leary, Fred Godwin and Chris Cotten, with the Office of the United States Attorney for the Western District of Tennessee. The state criminal and civil proceedings are being handled by Assistant District Attorneys General John Campbell, Paul Hagerman and Ray Lepone. In addition to the Memphis Police Department, the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation and the U.S. Marshal’s Service participated in the investigation and the December 9 enforcement operations.

Note: Allegations and charges brought against a person through criminal and civil pleadings are accusations only. That person is presumed innocent until and unless proven guilty.

SUMMARY OF FEDERAL INDICTMENTS IN OPERATION LAST CALL

DEFENDANT CHARGES AND PENALTIES

Jason C. Youngblood 1 count – 21 U.S.C. § 856 [making the property at Tunica Caberet available for distributing and using narcotics (Ecstacy, cocaine, marijuana, methamphetamine, hydrocodone)]

20 yrs max. prison term; $500,000 max. fine; max. 3 yrs supervised release

Lisa Biers 4 counts – 21 U.S.C. § 841(a)(1) [narcotics distribution (methamphetamine)]