Sean P. Costello U.S. Attorney | U.S. Attorney for the Southern District of Alabama
Five individuals from Mobile, Alabama, have been sentenced in federal court for their roles in an interstate drug trafficking organization. Richard Wells III, Ronald Darnell Phillips, Demetrius James Lutin, John David Clarke, and Desmon Demond James received sentences between October and December 2025. The group was indicted for participating in a cocaine and heroin trafficking conspiracy that operated from 2016 through April 2025. All five pleaded guilty to the conspiracy charge during the fall of 2024. Additionally, Phillips, Clarke, and Lutin admitted to possession with intent to distribute cocaine. Clarke also pleaded guilty to conspiracy to commit fraud and wire fraud in a separate case, as well as possession with intent to distribute fentanyl and possession of prison contraband. James pleaded guilty to possession of prison contraband.
The Federal Bureau of Investigation began investigating John David Clarke’s drug distribution activities by obtaining a court-authorized wiretap on his phone. Monitoring revealed communications with his supplier—who was charged as a co-defendant—and led agents to identify other distributors: Wells, Phillips, James, and Lutin. Conversations among these individuals involved discussions about drug quantities, prices, and delivery locations. Over the course of the conspiracy, hundreds of kilograms of cocaine and at least three kilograms of heroin sourced from Mexico were trafficked through Texas into Mobile and elsewhere. Authorities seized eight firearms in Mobile and Katy, Texas, along with hundreds of rounds of ammunition.
Clarke and James were found possessing cell phones while awaiting sentencing at a local jail under U.S. marshal custody; investigations determined that Clarke used his contraband phone to smuggle fentanyl and other substances into the facility.
Further investigation uncovered Clarke’s involvement in a stolen identity tax refund fraud scheme during the COVID-19 pandemic. FBI and IRS investigators found that he submitted hundreds of fraudulent tax returns claiming sick family leave credits for 2021 without full knowledge or consent from those whose identities were used. The refunds were divided among conspirators including Clarke. Investigators also determined that Clarke fraudulently obtained Paycheck Protection Program loans by misrepresenting business activity prior to the pandemic.
United States District Court Judge Terry F. Moorer imposed sentences ranging from 37 months (Phillips) up to 240 months (Clarke), with supervised release terms between five and ten years for each defendant upon completion of their prison terms. All defendants are required to undergo testing and treatment for substance abuse as conditions of supervision; they are also subject to searches based on reasonable suspicion. No fines were imposed except special assessments ranging from $100–$525 per individual; Clarke must pay $83,931.70 in restitution to the IRS and Small Business Administration.
Judge Moorer ordered forfeiture of cash and weapons seized during the investigation.
United States Attorney Sean P. Costello announced these sentences.
The investigation involved multiple agencies: Federal Bureau of Investigation; Department of Homeland Security; Homeland Security Investigations; United States Customs and Border Protection; Internal Revenue Service; Small Business Administration Office of Inspector General; Mobile County Sheriff’s Office; and Mobile Police Department.
Assistant U.S. Attorneys Justin Kopf and Gloria Bedwell prosecuted the case.
"This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime."
