Members Of A Local Drug Trafficking Organization Sentenced In Federal Court

MOBILE, AL - Five members of an interstate drug distribution organization were sentenced in federal court during October and December of 2025. Richard Wells, III, 48; Ronald Darnell Phillips, 45; and Demetrius James Lutin, 45 were sentenced on October 9, 2025. John David Clarke, 49, was sentenced on December 4, 2025, and Desmon Demond James, 49, was sentenced on December 11, 2025. All five men are from Mobile. Court documents show that they were indicted as members of a cocaine and heroin trafficking conspiracy that operated from 2016 through April 2025. They entered guilty pleas to the conspiracy charge during the fall of 2024. Phillips, Clarke, and Lutin also pleaded guilty to substantive counts charging possession with intent to distribute cocaine. Clarke pleaded guilty to conspiracy to commit fraud and wire fraud in a separately charged case. Clarke further pled guilty to possession with intent to distribute fentanyl and possession of prison contraband. James also pled guilty to possession of prison contraband.

Court documents show that the Federal Bureau of Investigation (FBI) initiated the investigation into the drug distribution of John David Clarke and eventually obtained a court-authorized wiretap on Clarke's phone. During the monitoring of Clarke's calls, agents identified Clarke's drug supplier, who was charged as a co-defendant. Court documents further show that substantial incriminating evidence was obtained from Clarke's phone communications with his drug supplier. Evidence obtained from several phones belonging to Clarke's drug supplier identified other drug distributors including Wells, Phillips, James, and Lutin. They discussed drug amounts, prices and locations where the drugs were delivered for further distribution. During the conspiracy, hundreds of kilograms of cocaine and at least three kilograms of heroin, sourced from Mexico, traveled through Texas and were distributed in Mobile and elsewhere. During the conspiracy, hundreds of thousands of dollars in drug proceeds were delivered from Mobile to drug suppliers in Texas. Eight guns were also seized from locations in Mobile and Katy, Texas, along with hundreds of rounds of ammunition.

Court documents show that Clarke and James were found in possession of prison contraband, identified as cell phones, while awaiting sentencing on their other cases in the custody of the U.S. marshal's service at a local jail. That investigation established that Clarke had used his contraband cell phone to smuggle fentanyl and other substances into the facility.

Court documents further detail Clarke's involvement in a separate case charging him and other co-conspirators with fraud. During the monitoring of Clarke's calls pursuant to the court-authorized wiretap, FBI and Internal Revenue Service (IRS) investigators discovered a stolen identity tax refund fraud scheme carried out by Clarke and others. The scheme involved the submission of hundreds of fraudulent tax returns falsely claiming COVID-related sick family leave credits the 2021 tax year. These fraudulent tax returns were filed on behalf of individuals without full knowledge or consent as to how their means of identification were being utilized and what had been submitted on their behalf. The fraudulent tax returns generated illegitimate tax refunds, which were ultimately split amongst the conspirators, including Clarke. Investigators also determined that Clarke had fraudulently obtained Paycheck Protection Program loans based on the misrepresentation that he had been engaged in legitimate business activities in the year preceding the COVID pandemic.

United States District Court Judge Terry F. Moorer imposed the sentences. Clarke was sentenced to 240 months' imprisonment in both the drug trafficking and fraud cases, with the sentences to run concurrently. Clarke was ordered to serve a ten-year term of supervised release upon release from prison. Wells was sentenced to 108 months' imprisonment, to be followed by a 10-year term of supervised release. Lutin was sentenced to 90 months' imprisonment, to be followed by a ten-year term of supervised release. Phillips was sentenced to 37 months' imprisonment, to be followed by a ten-year term of supervised release. James was sentenced to 58 months' imprisonment, to be followed by a five-year term of supervised release. As conditions of their supervision, all five defendants will undergo testing and treatment for drug and/or alcohol abuse, and each will be subject to a search of his person and premises upon reasonable suspicion. No fine was imposed but the judge ordered that Phillips pay $100 in special assessments; Lutin, and Wells were ordered to pay $200 in special assessments; James was ordered to pay $125 in special assessments; and Clarke was ordered to pay $525 in special assessments and $83,931.70 in restitution to the IRS and Small Business Administration. Judge Moorer further ordered the forfeiture of the property that was seized during the investigation, including cash and numerous weapons.

United States Attorney Sean P. Costello made the announcement.

The case was investigated by the Federal Bureau of Investigation, the Department of Homeland Security, Homeland Security Investigations, United States Customs and Border Protection, the Internal Revenue Service, the Small Business Administration Office of Inspector General, the Mobile County Sheriff's Office, and the Mobile Police Department.

Assistant U.S. Attorneys Justin Kopf and Gloria Bedwell prosecuted the case on behalf of the United States.

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.