Eastern District of North Carolina
Press releases recorded for this federal judicial district.
Harnett County Drug Dealer Sentenced to 15 Years in PrisonRead the Press Release
RALEIGH, N.C. – A Harnett County man was sentenced to 180 months in prison for dealing methamphetamine. On October 6, 2022, Christopher Wayne McNeill pled guilty to the charges.
According to court documents and other information presented in court, a multi-agency investigation identified that Christopher Wayne McNeill, 49, was trafficking kilograms of methamphetamine in Harnett County. Law enforcement made four controlled purchases of methamphetamine involving McNeill. Through their investigation, law enforcement determined McNeill was supplying other distributors with methamphetamine.
McNeill pled guilty to conspiracy to distribute more than fifty grams of methamphetamine and distributing more than five grams of methamphetamine. He has previous felony convictions for assault with a deadly weapon (1994) and breaking and entering (2014) as well as a felony drug conviction (2021).
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol Tobacco and Firearms, Coats Police Department, Dunn Police Department, Harnett County Sherriff’s Department, and the State Bureau of Investigation investigated the case and Special Assistant U.S. Attorney Casey L. Peaden prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-174-1D.
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Brunswick County Man Sentenced to 60 Years in Prison for Child Pornography ChargesRead the Press Release
WILMINGTON, N.C. – A Brunswick County man was sentenced today to 720 months in prison, followed by five years of supervised release for possessing and trading child pornography. The prison sentence imposed is the statutory maximum allowed for the crimes. Craig Connors Schenck, 39, of Saint James, North Carolina pled guilty on March 8, 2022 to Receipt of Child Pornography, Distribution of Child Pornography and Possession of Child Pornography. Schenk was also ordered to pay $105,000 in restitution and was ordered to pay a special assessment of $15,000.
According to court documents and other information presented in court, Craig Connors Schenck, 39 was investigated by the North Carolina State Bureau of Investigation (SBI) after Google notified the National Center for Missing and Exploited Children a user had uploaded images of child pornography. The email address used by the individual contained Schenck’s first initial and last name. The IP address associated with the uploaded illegal material was being leased to Schenck’s parents with whom Schenck lived. The cybertip was classified as a priority because it was believed Schenck may have been employed in a capacity which gave him access to children.
The SBI executed a search warrant at Schenck’s residence the same day the cybertip was received. Schenck admitted to law enforcement that he was given a thumb drive in 2007 that had child pornography on it. He admitted to being a part of online platforms where child pornography was traded. Schenck also admitted that for some time he had been employed with various companies who cared for cognitively impaired children. Schenck’s digital devices were seized and analyzed by the SBI.
During the forensic analysis of Schenck’s digital devices nearly 1,500 images and over 600 videos that depicted child sexual abuse material were discovered. In addition to images, agents located a number of chats in various social media platforms, wherein Scheck discussed the sexual abuse of children, traded child pornography images and described graphic sexual fantasies. Agents also found child pornography images of a child that, in chats with other individuals online, Schenck admitted to producing. The child was identified as a child with whom Schenck had worked in the course of his employment.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. Chief U.S. District Judge Richard E. Myers II presided over the sentencing. North Carolina State Bureau of Investigation investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-CR-00012-M.
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Fayetteville Man Sentenced to More Than 15 Years for Child Pornography After Negotiating a Plan to Have Sex with a Child in JamaicaRead the Press Release
NEW BERN, N.C. – Darren Kalmar of Fayetteville was sentenced today to 188 months in prison for two counts of receipt of child pornography. Kalmar, 58, pled guilty to the charge on May 13, 2022.
According to court documents and other information presented in court, in 2019, the National Center for Missing and Exploited Children (NCMEC) received two CyberTip reports from a social networking platform, Tagged, regarding suspected child exploitation activity. The CyberTips concerned activity in May 2019 between two users who discussed arranging for sex with minors abroad. One user, later identified as Kalmar, mentioned having sex with a 13-year-old Dominican girl and asked the other person to arrange contact with a girl who was nine or 10 years old. The other responded with a photo that appeared to depict a prepubescent female, and Kalmar responded, “perfect, I want her.” They negotiated prices, settling on $90 for nude photos and $250 for access to the child for five days. He provided a CashApp payment username that contained “kalmar” and an email address with username dskalmar32. At the end of the conversation, Kalmar states that he sent the money and that he needs the photos now before asking the second user, “You get the money and run[?]”
The IP address for the second user was traced to a woman in Jamaica. Kalmar’s IP was tracked to a residence in Fayetteville, and DMV records showed that the defendant Darren Kalmar resided there. Law enforcement compared Kalmar’s driver’s license photo to a user profile photo on his Tagged account and found that they matched.
The Federal Bureau of Investigation (FBI) executed a search warrant on Kalmar’s home on October 18, 2019. On Kalmar’s cellphone, agents found audio files in which Kalmar appeared to be discussing upcoming travel to the Philippines for sex with a 15-year-old minor female and her friends. FBI confirmed that Kalmar had purchased tickets to travel to the Philippines on those dates. Records also showed Kalmar had previously traveled to Cambodia and the Philippines in 2018.
Kalmar agreed to be interviewed and admitted to owning the Tagged account and chatting with someone in Jamaica. He also confirmed that the CashApp account was his but claimed the conversation arranging a sexual encounter with a minor was merely fantasy.
FBI conducted forensics on Kalmar’s computer and several mobile devices. On a cellphone they found 21 images depicting child sexual abuse material (CSAM), and on a computer they found an additional 401 images and 11 videos of CSAM. The files included minors under the age of 12.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The FBI investigated the case, which Assistant U.S. Attorney Jake D. Pugh prosecuted.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-cr-00013-FL.
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Robeson County Man Sentenced to 21 Years for Trafficking Kilograms of Drugs from MexicoRead the Press Release
RALEIGH, N.C. – A Maxton man was sentenced today to 252 months in prison for his role in a drug trafficking conspiracy responsible for moving kilograms of methamphetamine, cocaine, and heroin from Mexico to Robeson County, North Carolina. On December 8, 2021, Jeremiah Eli Lowery pled guilty to conspiracy to distribute methamphetamine, cocaine, and heroin, and possession of methamphetamine, cocaine, and heroin with intent to distribute.
“Deputies caught this drug trafficker bringing kilos of dope from Mexico to North Carolina,” said U.S. Attorney Michael Easley. “Now he faces the consequences of his repeated and persistent participation in the international drug trade. Today’s sentence should serve as a deterrent to others pushing drugs in our communities. We will investigate and prosecute you.”
According to court documents and other information presented in court, Lowery, 26, was identified during a multi-year investigation as a primary point of contact for a group of individuals who were trafficking kilograms of controlled substances from Mexico, through legal ports of entry, into the Brownsville, Texas area. Investigators learned that Lowery would travel to Texas, cross the border to meet with suppliers, and then personally transport kilograms of drugs across the border and ultimately back to Robeson County where the drugs would be sold.
On October 14, 2020, the Robeson County Sheriff’s Office conducted a traffic stop on a rental vehicle occupied by Lowery and two other individuals as they returned from Texas. Investigators located 2.3 kilograms of methamphetamine, 2.98 kilograms of cocaine, 967.7 grams of heroin, and more than $58,000 in U.S. Currency inside the spare tire of the vehicle.
In the spring of 2021, investigators began to receive information that Lowery had resumed travelling to Texas to pick up controlled substances from the same suppliers. Through coordination with the Drug Enforcement Administration (DEA) and Customs and Border Patrol, Lowery was stopped at a border checkpoint near Brownsville, Texas on the way back into the United States from Mexico on April 8, 2021. After a canine alerted to the presence of narcotics within the vehicle, officers recovered 2.8 kilograms of cocaine and 1.8 kilograms of methamphetamine from the spare tire.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Robeson County Sheriff’s Office, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case and Assistant U.S. Attorney Caroline Webb prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-CR-59-D-1.
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Federal Jury Convicts Cyberstalker Who Used Fake LinkedIn Profile in Harassment CampaignRead the Press Release
NEW BERN, N.C. – A federal jury convicted a Texas man on Friday on charges of cyberstalking.
According to court records and evidence presented at trial, Christopher Kevin Morris, 45, attempted to ruin the life of a victim in the Eastern District of North Carolina, as well as harass two other victims elsewhere. Morris attempted to defame his North Carolina victim by creating a fake LinkedIn profile describing the victim as a child molester and rapist, sending emails to co-workers pretending to be a respected colleague alleging that the victim was a convicted child molester, and sending emails to co-workers pretending to be the victim that used racist language. In addition, Morris sent harassing and confrontational emails to each of the victims using a variety of email accounts implying that he was watching them or their family, calling them inappropriate things, and using racist and offensive language. He sent a message to one of the victims saying, “dead man walking.” Finally, Morris attempted to ruin the life of the North Carolina victim by posting source code on the public internet on multiple occasions, code that the victim worked extensively on for six years and was worth millions of dollars. Morris engaged in this criminal conduct after making inappropriate comments to the North Carolina victim in a forum public to other employees and, after refusing to apologize for his conduct, was removed from his job.
Morris faces a maximum sentence of 60 months in prison, a $250,000 fine, and three years of supervised release when sentenced in May 2023.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Louise W. Flanagan accepted the verdict. The case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Brad DeVoe.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:21-CR-370-FL.
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Two Wake County Men Plead Guilty to COVID-19 Fraud SchemeRead the Press Release
RALEIGH, N.C. – Albert Eugene Miller, Jr., 58, and Jonathan Fleming, 60, both pleaded guilty today to conspiracy to commit wire fraud for fraudulently obtaining Paycheck Protection Act (“PPP”) COVID-19 loans. They each face up to 20 years in prison.
“These two defendants, along with their network of co-conspirators, took taxpayer money meant to help struggling small businesses during a global pandemic,” said U.S. Attorney Michael Easley. “We are investigating and prosecuting those who steal from public programs intended to keep legitimate businesses afloat.”
According to each charged criminal information, both defendants conspired with Edward Whitaker, Schunda Coleman, and others to obtain fraudulent PPP loans on behalf of their respective businesses. Whitaker and Coleman pled guilty on January 19, 2023 for their role in operating a nation-wide scheme to help people across the country commit millions of dollars of PPP fraud.
According to charging documents and information summarized in court, Whitaker and Coleman created fraudulent supporting documents and applications for PPP loans which they provided to Miller and Fleming in exchange for 25% of the total loan proceeds. The fraudulent applications falsified the number of employees and gross wages being paid prior to the COVID pandemic, in order to help qualify for PPP loans. Following the disbursement of the PPP loans, Whitaker allegedly instructed Miller and Fleming as to how to make it appear that the PPP loans were being paid out to employees, when in reality the money was transferred back to Miller and Fleming, respectively. The fraudulent payroll records were then allegedly submitted to the Small Business Administration (SBA) to obtain 100% loan forgiveness.
Late last year, Quentin Jackson pled guilty in the same conspiracy which included the recruitment of numerous individuals (such as Miller and Fleming) in the Eastern District of North Carolina to use Whitaker and Coleman to obtain fraudulent PPP funds.
“The Paycheck Protection Program was designed to help small businesses facing financial difficulties during the COVID-19 pandemic,” said Donald “Trey” Eakins, Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge in the Charlotte Field Office. “Through our partnership with the U.S. Attorney’s Office and our federal law enforcement partners, IRS Criminal Investigation Special Agents will continue to aggressively pursue individuals who try to exploit federal relief programs for their personal gain.”
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to the millions of Americans who were economically suffering from the COVID-19 pandemic. The CARES Act and additional appropriations authorized up to $649 billion in forgivable loans to small businesses through the Paycheck Protection Program (PPP). Financial institutions issued the PPP loans, which were guaranteed by the SBA.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after United States Magistrate Judge Robert T. Numbers II accepted the pleas. Internal Revenue Service (IRS) Criminal Investigation is leading the investigation, and Assistant U.S. Attorney David G. Beraka is prosecuting the cases.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case Nos. 5:22-cr-00290-D and 5:22-cr-00337.
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Wilmington Felon Receives 90 Months for Fourth Conviction of Possession of a Firearm by a Convicted FelonRead the Press Release
WILMINGTON, N.C. – Michael Kwame Hines, 31, of Wilmington, NC, was sentenced today to 90 months in federal prison for two counts of felon in possession of a firearm. On August 11, 2022, Hines pled guilty to the charges.
“Through our ongoing partnership and collaboration with federal, state and local law enforcement, we are able to put dangerous criminals behind bars and make our communities safer,” said U.S. Attorney Michael Easley. “This defendant has decided to illegally possess guns again and again. Felons in Wilmington and beyond should take warning from Mr. Hines’ case – possessing a gun will get you federal time.”
“I am very proud of our officers for making this arrest and for their continued effort to reduce violent crime on our streets,” said Wilmington Police Chief Donny Williams. “I would like to thank the U.S. Attorney’s Office, the Department of Justice, the ATF, and our other partner agencies both local, state, and federal who continue to work with us to incarcerate violent individuals. We remain committed to combatting gun crime within the Wilmington community and keeping firearms out of the hands of criminals.”
According to court documents and other information presented in court, in February of 2021, members of the Wilmington Police Department received several complaints regarding narcotics sales and people with firearms on the porch of a residence on Meares Street. Officers conducted surveillance on the residence over several days and it was apparent that drug transactions were being conducted. On February 27, 2021, officers approached the residence and made contact with Michael Hines, Quemar Wooten, and another individual on the front porch. During their investigation, officers located a stolen firearm in Wooten’s waistband and another firearm underneath a sweatshirt belonging to Hines. Officers searched Hines’ rental vehicle in the driveway and located a digital scale, approximately 41 grams of marijuana, and small Ziplock bags that are typically used to distribute narcotics. Hines was arrested on state charges and subsequently bonded out of jail.
On May 3, 2021, while out on bond for the charges from February 27, Wilmington Police Department officers were conducting surveillance on Hines and witnessed him park his rental car at a grocery store in Wilmington and leave in another vehicle. Officers executed a search warrant on the vehicle and located, a Glock 43 firearm, three magazines of ammunition, and a digital scale with marijuana residue on it. Hines was arrested the next day.
Hines has multiple prior felony convictions, including robbery with a dangerous weapon, and this sentence will represent his third and fourth conviction for possession of a firearm by a convicted felon.
On June 24, 2021, Wooten pled guilty to one count of possession of a firearm by a felon and on, October 12, 2022, he was sentenced to 72 months in federal prison.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Wilmington Police Department’s Gun Crime Task Force, the Mobile Field Force Unit, and the Wilmington Police Department investigated the case and Special Assistant United States Attorney William Van Trigt prosecuted the cases. Special Assistant United States Attorney William Van Trigt represents the government. Van Trigt is a prosecutor with the New Hanover County District Attorney’s Office assigned to the U.S. Attorney’s Office to prosecute federal violent crimes and other criminal matters. This has been made possible by a grant funded by New Hanover County.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-cr-00055-FL.
Franklin County Drug Dealer Sentenced as Career OffenderRead the Press Release
NEW BERN, N.C. – Jermaine Carlton Jones, 45, was sentenced today to 160 months in prison for possession with intent to distribute cocaine and marijuana and being a felon in possession of a firearm. On February 7, 2022, Jones pled guilty to the charges. Jones is a convicted felon and is considered a Career Offender under federal sentencing law because of previous convictions for violent crimes.
According to court documents and other information presented in court, the Franklin County Sheriff’s Office (FCSO) Drug Unit began an investigation into Jones in October 2020 after responding to a report of a gunshot victim. When they arrived on scene, officers encountered Jones who stated he had been shot in the head. During the investigation of the crime scene, officers with FCSO recovered 56.5 grams of cocaine and a loaded 9mm handgun loaded with ammunition. Thereafter, the FCSO utilized a confidential informant to make four controlled purchases of cocaine from Jones at his residence on Halifax Road in Louisburg, North Carolina. In January 2021, the FCSO executed a search warrant on that residence and recovered 372 grams of marijuana, 100 grams of cocaine, a digital scale, $10,615 in cash, and a loaded revolver. On June 2, 2021, the FCSO attempted to serve Jones with a federal arrest warrant based on the above conduct and observed him conduct a hand-to-hand drug transaction. A later search of Jones’ residence upon his arrest yielded an additional amount of cocaine, cocaine base (crack), and marijuana.
Jones prior convictions include assault with a deadly weapon with intent to kill, selling or delivering cocaine, possession with intent to sell or deliver marijuana, and several misdemeanor convictions.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Franklin County Sheriff’s Office investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-223-FL.
Armed Wilmington Drug Dealer with Sawed-Off Semiautomatic Rifle Sentenced to 10 Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – Ronesha Greene-McNeil, 36, of Wilmington North Carolina, was sentenced to 120 months in prison for conspiracy, distribution of methamphetamine, and possession of a sawed-off semiautomatic rifle with a 110-round drum magazine.
According to court documents and other information presented in court, between April 7, 2021, and May 26, 2021, Greene-McNeil, on five separate occasions sold a total of more than a kilogram of methamphetamine to an undercover Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agent in Brunswick County North Carolina. On June 7, 2021, Greene-McNeil also sold a 9mm handgun and a sawed-off .22 caliber semiautomatic rifle with a 110-round drum magazine to undercover ATF agents at the same location in Brunswick County.
On June 23, 2021, Greene-McNeil was stopped in a vehicle she was driving for a traffic violation, and, during a search of her vehicle, Brunswick County Sheriff’s deputies located a kilogram of methamphetamine.
This is part of operation “Golfer” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco and Firearms and the New Hanover and Brunswick County Sheriffs’ Office investigated the case and Assistant U.S. Attorney Timothy Severo and Gabe Diaz prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR-00025-FL.
Wilmington Man Who Sold 3-D Printed “Ghost Gun” to Undercover Agent Gets More than Six Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – David Hedge, 22, of Wilmington North Carolina, was sentenced to 75 months in prison for distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking offense, including selling a stolen gun and a privately manufactured firearm, commonly referred to as a “Ghost Gun,” which he bragged did not have any serial numbers and couldn’t be traced by law enforcement.
“Non-serialized ghost guns are increasingly getting into the hands of drug traffickers and contributing to the violence in our communities,” said U.S. Attorney Michael Easley. “Working with the ATF and local law enforcement, we are holding accountable those pushing illegal guns and drugs. The ‘untraceable’ gun the defendant once bragged about has led to a very traceable prison sentence.”
According to court documents and other information presented in court, on September 1, 2021, Hedge sold an ounce of methamphetamine to an undercover Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agent. The agent asked Hedge if he was armed while he was dealing. Hedge produced a handgun with a high-capacity magazine loaded with 25 rounds. Hedge informed the undercover officer that it was a “Ghost Gun,” and described how the gun had been made on a 3-D printer. The agent purchased the gun from Hedge. On September 8, 2021, Hedge sold the undercover agent 2 loaded firearms, one of which had been reported stolen and almost a half-ounce of methamphetamine.
This is part of operation “Golfer” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco and Firearms and the New Hanover and Brunswick County Sheriffs’ Office investigated the case and Assistant U.S. Attorney Timothy Severo and Gabe Diaz prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR-00037-FL.
Violent Drug Dealer Gets More Than 10 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
NEW BERN, N.C. – Naulege Johnson, 24, of Wilmington, was sentenced to 121 months in prison for distribution of 50 grams or more of methamphetamine. He pled guilty to the charge on October 4, 2022.
According to court documents and other information presented in court, on July 8, 2021, Johnson sold 32 grams of methamphetamine to an undercover Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agent in Brunswick County, North Carolina. On July 14, 2021, Johnson sold more than 100 grams of actual methamphetamine to the same agent at the same location and more than 160 grams of actual methamphetamine on July 22, 2021. The investigation revealed that Johnson had been validated a member of the United Blood Nation by law enforcement.
Johnson has prior convictions for possession of a stolen firearm (2017) and possession with intent to manufacture, deliver or sell heroin (2020). He was on probation for the heroin charge at the time he committed the current offense. Johnson also has a pending First-Degree Murder charge in New Hanover County.
This is part of “Operation Golfer” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco and Firearms and the New Hanover and Brunswick County Sheriffs’ Office investigated the case and Assistant U.S. Attorney Timothy Severo and Gabe Diaz prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR-00028-FL.
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Two Women Sentenced to Prison for Illicit Massage Parlor Operation and Attempted Bribe of Federal AgentsRead the Press Release
NEW BERN, N.C. – Two women from Flushing, New York and Wilmington, North Carolina were sentenced today to combined 33 months in prison for their management and involvement in an illicit massage parlor operation between August of 2020 and June of 2021. Ming Ji Cao, sentenced to 18 months and a $1000 fine, and Og Bun Park, sentenced to 15 months and a $750 fine, previously pled guilty to the charges. Both women were also sentenced to three years of supervised release following their release from prison.
According to court documents and other information presented in court, Cao and Park, were arrested as part of a broad undercover operation for attempting to bribe law enforcement officers to provide protection for their massage parlors in Cary and Wilmington, where sexual services were being offered.
The case arose from an investigation led by Homeland Security Investigations (HSI) with the assistance of other agencies, which determined that, in addition to the massages, clients were also obtaining sexual services at the parlors. Additionally, an HSI agent began going undercover to meet with Cao, Park, and other individuals who provided bribes to the agent, believing that the bribes would provide protection from law enforcement inquiries at the various massage parlors.
On June 16, 2021, HSI, with the assistance of numerous law enforcement agencies, led a coordinated takedown across four different federal districts that included the execution of search warrants at eight different massage parlors, multiple residences, and the arrest of six individuals, including Cao and Park. Cao and Park are each responsible for coordinating several thousand dollars in bribery payments.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Department of Homeland Security–Homeland Security Investigations led the investigation with assistance from the Federal Bureau of Investigation, the Wake County Sheriff’s Office, the Durham County Sheriff’s Office, the Cary Police Department, the New Hanover County Sheriff’s Office, the Wilmington Police Department, the Horry County Police Department, the United States Marshals Service, and other state and local investigators , and Assistant U.S. Attorney Bryan M. Stephany prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-cr-00079-Fl.
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Shooting Near Federal Courthouse in Elizabeth City Gets Man a Decade in Federal PrisonRead the Press Release
RALEIGH, N.C. – An altercation near the Federal Courthouse in Elizabeth City landed Tavori Ditron Lindsey 10 years in federal prison after he shot at another man with a handgun and AR-15. On October 18, 2022, Tavori Ditron Lindsey pled guilty to the charge.
According to court documents and other information presented in court, Lindsey, 36, and another man, Amos Parker, were involved in an early morning shooting on September 5, 2021, at the intersection of East Colonial Avenue and McMorrine Street in Elizabeth City, which is about a block away from the federal courthouse. Street cameras captured the shooting and showed Parker and Lindsey engage in a verbal altercation with a man outside the Cue, a nearby establishment. Parker can be seen on video surveillance firing a handgun at another man as he fled the area on foot. Lindsey can also be seen shooting an AR-15 style rifle at the same man. The Elizabeth City Police Department (ECPD) quickly responded and noticed damage to a nearby building consistent with gun shots. Officers recovered several .223 caliber and .45 caliber shell casings in the street where the shooting occurred. The pair were later arrested by ECPD and charged with state offenses, and they were later indicted in federal court.
Lindsey is a convicted felon, having prior convictions for common law robbery, second degree kidnapping, and selling or delivering marijuana, as well as several misdemeanor convictions.
Parker pled guilty to possession of ammunition by a convicted felon on October 18, 2022 was sentenced to 103 months in federal prison on January 18, 2023.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Federal Bureau of Investigation (FBI) and the Elizabeth City Police Department investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:21-CR-33-BO.
Member of the Pagans Motorcycle Club Sentenced to More Than 27 Years in Prison for Armed Methamphetamine TraffickingRead the Press Release
WILMINGTON, N.C. – A Kings Mountain-based Pagans Motorcycle Club (PMC) member was sentenced today to 330 months in prison for armed drug trafficking. On June 7, 2022, Justin Matthew Fite, also known as “Raw,” pled guilty to the charges. Fite, 31, is one of 20 defendants charged as part of Operation Ice Diamond, which was announced last week, when Christopher Lamar Baker, a national leader of the PMC was sentenced to 75 years (900 months) in prison on drug trafficking, firearm and money laundering charges. The PMC is recognized by law enforcement as an Outlaw Motorcycle Gang (OMG).
The investigation was initiated by members of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Raleigh Police Department into individuals involved in the distribution of firearms and methamphetamine in multiple states. Investigators utilized controlled purchases, confidential informants, and undercover agents to successfully identify 20 individuals, including Fite and Baker, who were involved in the drug trafficking operation.
“This case is yet another example of the coordinated action that law enforcement is taking to address organized crime and stem the flow of methamphetamine into our community,” said U.S. Attorney Michael Easley. “It should serve as a warning to gangs and other armed drug traffickers.”
“This collaborative effort was aimed at disbanding a violent criminal operation from the top down,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Bennie Mims. “Not only were we recently able to apprehend, charge, and sentence one of the top leaders in this organization, but we also worked to make sure that those participating in the violence and drug crimes associated with this group were also brought to justice.”
Fite was associated with Baker through their shared involvement in the PMC, a criminal enterprise with leaders across the United States of America and Puerto Rico. Fite was stopped in July of 2021 when law enforcement in Aiken County, South Carolina, initiated a traffic stop on a motorcycle operated by Fite. Law enforcement knew that Fite was picking up methamphetamine on behalf of Baker from his source in the Atlanta area. The officer observed a concealed firearm and Fite was detained. A K9’s positive hit on the motorcycle’s saddlebag revealed two large bags containing nearly two kilograms of crystal methamphetamine. Fite admitted he was a member of the PMC and was federally arrested at his residence in Kings Mountain on March 18, 2022.
It was discovered during interviews conducted by law enforcement that Fite repeatedly dealt and purchased crystal methamphetamine for himself and other members of the PMC. Fite is accountable for distributing nearly five kilograms of methamphetamine between October of 2020 and March of 2022.
The prosecution of Fite is part of Organized Crime and Drug Enforcement Task Force Operation (OCDETF) Ice Diamond. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Raleigh Police Department (NC), and the Aiken County Sheriff’s Office (SC) investigated the case and Assistant U.S. Attorney Kelly L. Sandling prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-cr-00434-M.
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Kittrell Man Sentenced to More Than 15 Years for Multiple Armed Bank RobberiesRead the Press Release
WILMINGTON, N.C. – Stanley Kearney Jr., 27, of Kittrell was sentenced yesterday to 190 months in prison for charges related to two bank robberies in Raleigh and Greenville.
According to court records and other information presented in court, On December 6, 2019, the SunTrust bank located at 7320 Creedmoor Road in Raleigh, was robbed at gunpoint by four men. The men left the bank with approximately $11,578.00 and witnesses saw them fleeing the scene in a white Hyundai Elantra. On December 30, 2019, around 4:30 p.m., the Branch Bank & Trust (BB&T) located 2475 Stantonsburg Road in Greenville was robbed at gunpoint by three men. They left the bank with $72,853 and witnesses saw them flee the scene in a white Hyundai Elantra. Kearney was stopped on January 10, 2020, for unrelated traffic violations and attempted to flee from law enforcement. In an interview with law enforcement, Kearney would admit to committing the SunTrust and BB&T bank robberies. The codefendants in this case were Clifton Harris, Cameron Evans and Joshua Bailey. All three have pled guilty. Harris was sentenced to 81 months. Evans and Bailey are awaiting sentencing.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Davie County Sheriff’s Department, the Raleigh, Greenville and Mebane Police Departments, and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Leonard Champaign and Barbara Kocher prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:20-CR-00071-M.
Eight Trey Crip Gang Member Convicted in Aborted Murder Plot Receives 8 Years in PrisonRead the Press Release
RALEIGH, N.C. – A Raleigh member of the Eight Trey Gangster Crips (“ETGC”), Rayquan Wiggins, 27, was sentenced yesterday to 96 months in prison for his role in a conspiracy to commit murder which was aborted by law enforcement.
“This case is part of an operation that led to over twenty indictments, taking down dangerous gang leaders and those who, like Wiggins, conspired to kill rivals,” said U.S. Attorney Michael Easley. “We’ve forged a close partnership with Raleigh Police and the ATF to tackle violent crime, allowing for swift action by police to prevent yet another senseless murder.”
“ATF is proud to have been part of this collaborative effort to impact the threat violent street gangs have on our communities,” said Special Agent in Charge Bennie Mims. “When we can bring these individuals to justice, we better public safety throughout our neighborhoods.”
According to court documents and other information presented in court, an investigation identified a large drug-trafficking organization (DTO) which was distributing significant amounts of cocaine, methamphetamine, phencyclidine (PCP), 3,4-Methlyenedioxymethamphetamine (MDMA) and marijuana in the Raleigh area. The conduct of the DTO was perpetrated by leaders, members, and associates of the ETGC.
Wiretap surveillance intercepted a conversation among members of the ETGC to kill a member of a rival gang that had tased high-level ETGC member Deandre Earp . At the direction of ETGC leader Dexter Maxwell, Wiggins provided information on when the target of the murder plot would be in a certain area in Raleigh so that other ETGC’s, Deandre Earp and Clinton Basco, could commit the murder. Agents took enforcement action to prevent the murder from occurring by having Earp and Basco stopped as they were traveling by car to go murder the rival gang member. They were arrested before the murder could be committed. Maxwell, Basco and Earp have all previously pled guilty to charges related to the planned murder, as well as drug trafficking charges. Earp was sentenced to 40 years . https://www.justice.gov/usao-ednc/pr/raleigh-eight-trey-crip-gangster-sentenced-40-years-prison-vicar-and-methamphetamine
Sentencing is pending for Maxwell and Basco.
This investigation was part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Raleigh Police Department investigated the case and Assistant U.S. Attorney Kelly L. Sandling prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-00395-D.
Whispering Pines Registered Sex Offender Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
RALEIGH, N.C. – A Whispering Pines man and registered sex offender was sentenced today to 120 months in prison for possession of child pornography. Adam Mitchum Bailey, 44, was previously convicted on separate charges of child pornography possession in October of 2018. Bailey was charged with new child pornography charges in March of 2021. On August 22, 2022, Bailey pled guilty to possession of child pornography.
According to court documents and other information presented in court, Bailey pled guilty to the possession of child pornography and was sentenced in March 2019 to 24 months in the Bureau of Prisons (BOP) and 10 years of supervised release. Halfway through his time in BOP, he was transferred to the Austin Wilkes Society re-entry facility in Fayetteville, North Carolina to complete his sentence, and was released in November 2020. Days before his release, facility staff discovered and searched an unauthorized cellphone found on Bailey’s bed, revealing images of child pornography. Evidence within the phone indicated that it belonged to Bailey.
The cellphone, along with another cellphone confiscated from Bailey several weeks earlier, were turned over to the North Carolina State Bureau of Investigation Computer Crimes Unit. The second phone was also found to contain child pornography. In an interview with Bailey, he admitted to using both cellphones and electronically searching for the child pornography images.
Forensic examination of the phones recovered numerous files containing child pornography, including images of children under the age of 12. As a repeat offender, Bailey was subject to enhanced statutory minimums.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The North Carolina State Bureau of Investigation Computer Crimes Unit and the Bureau of Prisons investigated the case and Assistant U.S. Attorney Bryan M. Stephany prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-cr-00147-D.
Heroin and Fentanyl Dealer Sentenced to 13 Years in Prison, Investigation Launched After a Sale Led to an Overdose DeathRead the Press Release
RALEIGH, N.C. – A Burlington man was sentenced yesterday to 160 months in prison for distribution of heroin and fentanyl. On June 8, 2022, Justin Kyle Tripp pled guilty to the charge. The investigation into Tripp began after a purchase tied to Tripp resulted in an overdose death.
“Fentanyl is a dangerous synthetic drug that is driving the overdose epidemic and killing far too many Americans,” said U.S. Attorney Michael Easley. “We are targeting the drug dealers and criminal networks selling fentanyl and lacing their drug supply – fueling addiction and overdose deaths.”
According to court documents and other information presented in court, Tripp, 38, is responsible for distribution of a mixture of heroin and fentanyl. In June of 2020, officers with Raleigh Police Department were dispatched to a Raleigh residence for a reported death. An empty heroin bindle, a spoon and a used syringe were observed nearby the deceased victim. A review of the victim’s phone revealed a conversation between the victim and Tripp reflecting an arrangement for the victim to purchase heroin from Tripp. The victim’s cause of death was determined to be acute fentanyl and heroin intoxication. Law enforcement later obtained a search warrant for Tripp’s residence where they found a mixture of heroin and fentanyl, a digital scale and multiple empty heroin bindles.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Raleigh Police Department investigated the case and Assistant U.S. Attorney Kelly L. Sandling prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-00296-BO.
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Carrabba’s Robber Who Forced Employees into Closet Gets 97 Months in PrisonRead the Press Release
WILMINGTON, N.C. – A Wilmington man was sentenced today to 97 months in prison for Interference with Commerce by Robbery and Brandishing a Firearm in the Furtherance of a Crime of Violence. On June 1, 2022, Cornelius Riley, age 62, pled guilty to the charges. Through witness interviews, officers learned that Riley arrived at Carrabba’s Italian Grill in Wilmington after it was closed to the public and encountered an employee exiting the restaurant after finishing their shift. He then brandished a firearm and forced his way into the restaurant where he forced the employees to open the safe and empty cash drawers. Riley also demanded the security footage, but when the CD wouldn’t eject, he unhooked the recorder and threw it on the ground. Riley then forced the employees into a closet where he told them to wait.
According to court documents and other information, on November 20, 2020 at approximately 11:50 p.m., officers with the Wilmington Police Department responded to the Carrabba’s after receiving a call about an armed robbery in progress. When officers responded, they saw the defendant attempting to exit the restaurant with multiple items in his hands, however, when he saw police, he ran back inside. After a short standoff, Riley exited the restaurant and was placed under arrest. In a search incident to arrest, officers located approximately $490.00 in US Currency on Riley’s person that belonged to the restaurant. When officers searched the restaurant, they located a .22 caliber pistol in a trashcan, a pair of vinyl gloves, a closed zipper bank bag containing $1,900.00 in US Currency and assorted restaurant receipts and saw that multiple cash registers were disturbed, and the video recording system was on the floor. Officers interviewed the defendant who admitted to possessing the firearm found in the restaurant and admitted to trying to rob the restaurant.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Wilmington Police Department investigated the case and Special Assistant United States Attorney William Van Trigt prosecuted the case. Mr. Van Trigt is a prosecutor with the New Hanover County District Attorney’s Office. District Attorney Ben David has assigned him to the United States Attorney’s Office to prosecute federal violent crimes and other criminal matters. This has been made possible by a grant funded by New Hanover County.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-cr-00143FL
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Armed Drug Trafficker Sentenced to 144 Months in Prison After Investigation Spurred by Community ComplaintsRead the Press Release
RALEIGH, N.C. – Joseph Bernard White, 46, of Jacksonville, NC, was sentenced today to 144 months in prison for distribution of fentanyl and methamphetamine and possession of a firearm in furtherance of a drug trafficking offense. On October 4, 2022, White pled guilty to the charges.
“Residents of Jacksonville were courageous in reporting suspected drug trafficking to law enforcement,” said U.S. Attorney Michael Easley. “Thanks to their tips, an armed drug trafficker is off the streets and behind bars for the next twelve years.”
"The arrest and prosecution of White was a direct result of the cooperation between the community, law enforcement and prosecutors,” commented Onslow County Sheriff Chris Thomas. “Cooperation with community and our fellow law enforcement partners along with education are key to combating the drug epidemic."
According to court documents and other information presented in court, community complaints about suspected drug trafficking at a home in Jacksonville led to an investigation resulting in the seizure of drugs, drug proceeds, and multiple firearms. Between November 2020 and March 2021, White repeatedly distributed fentanyl and methamphetamine from his home. On March 5, 2021, officers searched the home and found methamphetamine, fentanyl, six guns, and nearly $4,000 in cash.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Onslow County Sheriff’s Office and the Drug Enforcement Administration (DEA) investigated the case and Assistant U.S. Attorneys Caroline Webb and Nicholas Hartigan prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR-73.
Wilmington ‘Gangster Disciple’ Felon with Stolen Guns and High-Capacity Magazines Receives 54 Months for Gun OffenseRead the Press Release
WILMINGTON, N.C. – A Wilmington man was sentenced today to 54 months in prison for felon in possession of a firearm. On October 31, 2022, Michael Tyron Bridges, age 27, pled guilty to the charge.
According to court documents and other information presented in court, on July 28, 2020, Michael Bridges was a passenger in a vehicle stopped by the Wilmington Police Department. During a search of the vehicle, officers located a Glock 45 with a 24-round magazine in a cupholder, a .380 pistol in the other cupholder, and a stolen Sig Sauer rifle in the backseat with Mr. Bridges. Mr. Bridges was arrested and charged with possession of a firearm by a convicted felon and was released on bond on July 29, 2020.
On March 16, 2021, while out on bond for the July 28, 2020 arrest, the Wilmington Police Department conducted a traffic stop on the vehicle Mr. Bridges was driving. After Mr. Bridges told officer he had marijuana on his person, officers conducted a search and located a Smith and Wesson .357 Magnum pistol in his pocket. Mr. Bridges was arrested and charged with possession of a firearm by a convicted felon and was released on bond on March 18, 2021.
August 16, 2021, while out on bond for the July 28, 2020 arrest and the March 16, 2021 arrest, officers with the Wilmington Police Department became aware that Mr. Bridges had an outstanding warrant for his arrest and conducted a traffic stop on the vehicle to serve him with the process. When Mr. Bridges stepped out of the vehicle, a 9mm live round of ammunition fell from his lap and, in a subsequent search of the vehicle, officers located a stolen 9mm Taurus G2 pistol. Mr. Bridges was arrested and charged with possession of a firearm by a convicted felon and was released on bond on September 3, 2021.
On March 23, 2022, officers with the Wilmington Police Department received a call from a store clerk regarding a firearm that was found in the parking lot of the business. When officers arrived, they located a Smith and Wesson handgun with a high-capacity magazine in the parking lot. Subsequent testing of the firearm revealed the presence of Mr. Bridges DNA on the firearm.
On August 31, 2022, Mr. Bridges was arrested on federal charges and was ordered to be detained pending the resolution of his case.
During sentencing, the Court found Mr. Bridges, a convicted felon, responsible for possessing at leave five firearms and ammunition between July 28, 2020, and March 23, 2022. Additionally, multiple firearms were reported stolen and had large capacity magazines.
Mr. Bridges was a named defendant in the 2018 New Hanover County Permanent Injunction declaring the 720 Gangster Disciple street gang a public nuisance in New Hanover County.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Wilmington Police Department’s Gun Crime Task Force, the Wilmington Police Department, and the New Hanover County Sheriff’s Office investigated the case and Special Assistant United States Attorney William Van Trigt prosecuted the case.
The conviction is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-cr-00080-BO.
Insurance Executives Plead Guilty to Conspiracy in Multi-Million Dollar Ponzi SchemeRead the Press Release
RALEIGH, N.C. – Joseph W. Floyd, IV, and William F. Floyd, Jr., brothers from Whiteville, North Carolina, each pleaded guilty yesterday before U.S. District Judge Terrence W. Boyle for conspiracy to sell and deliver unregistered securities in connection with a multi-year, multi-million dollar Ponzi scheme operated under the guise of a purported investment program. At sentencing, the Floyds each face a statutory maximum of 60 months’ imprisonment, a $250,000 fine, and three years of supervised release. The Floyds will also be required to make restitution to the victims of the offense.
“The Floyd brothers used their family insurance business to fleece dozens of Eastern North Carolina families of millions by promising low-risk investments with outsized returns,” stated U.S. Attorney Michael Easley. “The U.S. Attorney’s Office is turning up the heat on white collar conmen who use Ponzi schemes and securities fraud to defraud hardworking North Carolina families.”
"The level of greed the Floyd brothers exhibited is difficult to comprehend. Not only did they prey on members of their own community for profit, even relatives were also not off limits. While their guilty pleas won't reimburse those who lost money, we hope federal prison sentences will repay their victims in some way," said Acting FBI Special Agent in Charge Michael C. Scherck.
According to court documents and other information presented in court, the Floyds owned and operated Floyd’s Insurance Agency (FIA), an insurance business based in Whiteville, North Carolina. The Floyds, through FIA, also offered a “loan program” in which more than 150 individuals and businesses in Southeastern North Carolina and elsewhere invested funds in exchange for interest-bearing promissory notes. The promissory notes were securities as defined by law and therefore required to be registered with the Securities Exchange Commission (SEC). As part of the registration process, the SEC requires businesses to provide important financial information that allows investors to make informed investment decisions. The Floyds never registered their investment offering with the SEC at any time.
The loan program offering was portrayed as a safe and conservative investment, comparable to a traditional money market account or certificate of deposit (CD) but offering higher interest rates that varied from six percent to 10 percent. The promissory notes, which were personally guaranteed by the Floyds, stated that investor principal was repayable within one year. The Floyds initially used the borrowed funds to extend credit to Monthly Payment Plan (MPP), a company they co-owned in Chapel Hill, North Carolina, that was in the business of financing insurance premiums for consumers.
Investors were led to believe that FIA was earning sufficient profits from which to pay the promised rate of return and fund redemptions of principal upon demand. In truth, by 2012, FIA had borrowed more than $20 million from investors and did not have the means to service the debt through any legitimate business source. In order to forestall bankruptcy, the Floyds operated the Loan Program as a Ponzi scheme in which principal and profits were paid to existing investors with funds raised from more recent investors. Investors were never advised of this fact. Instead, the Floyds concealed FIA’s insolvency from investors and continued to accept additional investments. In May 2020, FIA filed for Chapter 11 bankruptcy protection. In August 2020, the Floyds each filed for personal bankruptcy.
Michael Easley, United States Attorney for the Eastern District of North Carolina, made the announcement after the arraignments were concluded. The Federal Bureau of Investigation, Charlotte Field Office, investigated the case. The Securities Exchange Commission, Atlanta Field Office, also provided valuable assistance. Assistant U.S. Attorney Adam F. Hulbig prosecuted the case for the government.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.7:23-CR-1-BO.
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Selma, N.C. Crips Gang Member Sentenced to 30 Years in Prison for Cocaine and Crack PossessionRead the Press Release
RALEIGH, N.C. –A verified Crips gang member residing in Selma, N.C., was sentenced Friday to 360 months in prison for conspiracy to distribute and possess with intent to distribute a quantity of cocaine and twenty-eight (28) grams or more of cocaine base (“crack”) and possession with intent to distribute a quantity of cocaine and cocaine base (“crack”). On July 19, 2022, Deondre Montreal Russell, 34, also known as “Poo Bear,” was convicted by a federal jury of the charges.
According to court documents and other information presented in court, Russell, 33, sold cocaine and crack to a confidential informant utilized by the Johnson County Sheriff’s Office in January of 2020. Upon leaving the meeting, Russell committed a traffic violation and was stopped by police. The stop resulted in an altercation between Russell and the officer, and Russell was arrested and found to be carrying 26.51 grams of cocaine base (“crack”), 27.62 grams of cocaine, and $650 in cash.
Over the course of the investigation, a confidential informant notified investigators that they met Russell during the summer of 2018 and stated that Russell sold them approximately 3,628.8 grams of crystal methamphetamine and 453.7 grams of cocaine base (“crack”) during an eight-to-nine-month period. The confidential informant observed Russell carrying and possessing at least two firearms. In October of 2020, when Russell was on state probation, officers federally arrested him and found a digital scale with apparent cocaine residue, as well as 10 grams of marijuana. After the arrest, additional confidential informants confirmed drug purchases from Russell and told investigators that Russell made credible threats to use violence against witnesses in his trial.
In September of 2005, Russell pled guilty to second degree murder and was released from prison in 2016. The defendant was originally charged as a juvenile, but his case was bound over to superior court and he was tried as an adult. Following his release from prison, Russell was convicted of possession of cocaine and other controlled substances, as well as selling marijuana in 2018.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Johnson County Sheriff’s Office investigated the case and Assistant U.S. Attorney Kelly L. Sandling prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00459-D.
Rocky Mount Gang Members Sentenced for Heroin & Fentanyl DistributionRead the Press Release
RALEIGH, N.C. – Two Rocky Mount men were sentenced today in connection to their role in a violent drug trafficking organization with ties to the United Blood Nation gang. The investigation revealed that Tyrone Foreman a/k/a Tye Nitty, who is awaiting sentencing, obtained kilograms of heroin and fentanyl from various sources of supply, and that Benjamine Moss, Jr. and Dentrez Randell Thomas were the primary distributors of these drugs within Nash and Edgecombe County. Moss, 31 was sentenced to 246 months in prison after having pled guilty to conspiring to distribute heroin, fentanyl, and marijuana, and possessing a firearm in furtherance of drug trafficking. Thomas, 28 was sentenced to 151 months in prison after having pled guilty to conspiring to distribute heroin, fentanyl, and marijuana.
U.S. Attorney Michael Easley stated, “These individuals peddled poison to the communities in and around Rocky Mount. The law-abiding citizens in these communities are much safer now that this source of illegal drugs has been removed from the streets.”
According to court documents and other information presented in court, Moss and Thomas were identified during a multi-year investigation into a Rocky Mount based Blood gang set led by Tyrone Foreman. Through a series of controlled purchases, traffic stops, law enforcement surveillance, and interviews of witnesses, investigators also learned that Moss and Thomas routinely carried firearms while they sold heroin and fentanyl and were tasked with threatening lower-level drug distributors at gunpoint to ensure that the organization’s drug sales continued. The investigation culminated in a December 2020 traffic stop of Thomas and Foreman on I-95 in Maryland as they returned from meeting with a New York based drug supplier. Over 3,500 dosage units of heroin/fentanyl mixture were seized during that stop.
“Stopping the flow of drugs into our communities plays a significant role in helping to decrease violent crime overall,” said ATF Special Agent in Charge Bennie Mims. “These particular gang members have been responsible for a large number of violent crimes in the area. To have them in custody and off our streets is a huge win for public safety.”
“Our goal is to reduce crime in our city by strategically targeting those involved in violent crime. It is our vision to make Rocky Mount one of the safest cities in North Carolina. These convictions are the result of long investigative work that could not have succeeded without the collaboration between federal, state and local law enforcement;” said Rocky Mount Police Chief Robert Hassell.
"I would like to express my appreciation to the law enforcement and the U.S. Attorney’s Office who were involved in this case,” said Nash County Sheriff Keith Stone. “The long hours and hard work by each agency have tremendously impacted the violence and drug trafficking surrounding our communities. Through our local, state, and federal partnerships, we continue our fight to take problems like this away from our citizens."
Edgecombe County Sheriff Cleveland Atkinson stated, "This was definitely a collaboration between all agencies. When we work together as one, there is almost nothing we can't achieve."
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms, and Explosive, Rocky Mount Police Department, the Nash County Sheriff’s Office, and the Edgecombe County Sheriff’s Office investigated the case and Assistant U.S. Attorney Caroline Webb prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-88-D.
Leader of the Pagans Motorcycle Club Sentenced to 75 Years in Prison for Methamphetamine Distribution, Firearm Distribution and Money Laundering ConvictionsRead the Press Release
WILMINGTON, N.C. – Christopher Lamar Baker, 49, a Raleigh-based national leader of the Pagans Motorcycle Club – which is recognized by law enforcement as an Outlaw Motorcycle Gang - was sentenced today to 900 months in prison following a conviction by a jury in September for drug trafficking, firearm, and money laundering charges.
Baker was a “13” in the Pagans Motorcycle Club prior to his November 2021 arrest by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). This designation means that he was one of only thirteen national leaders in the United States. This case is part of an ongoing operation that has resulted in the indictment of 20 individuals, including Baker.
“The circumstances of this case highlight the coordinated action that we, as law enforcement, are taking to address organized crime and the growing epidemic of methamphetamine in our community,” said U.S. Attorney Michael Easley. “It should serve as a warning to gangs and other criminal enterprises perpetrating violence. We will prosecute you and seek sentences that fit the crimes.”
According to court documents and other information presented in court, Baker supplied over 268 kilograms of methamphetamine into the Raleigh area and surrounding states on the East Coast. Baker was convicted by a jury of 17 counts, including conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession of firearm in furtherance of drug trafficking crimes—including a machine gun—and conspiracy to commit money laundering.
“The Raleigh Police Department is proud to work alongside our federal partners to investigate and prosecute those who seek to destroy our community with violence and drugs,” said Raleigh Police Chief Estella Patterson. “Removing this very dangerous person from our streets was an extraordinary step in making our community and state safer. By disrupting illegitimate criminal enterprises that seek to traffic guns and drugs into our community, we send a message that we will not tolerate the harm these dangerous organizations cause. Making Raleigh the safest city in the nation remains the top priority of the Raleigh Police Department. We can only do so through collaboration with the community, local and state law enforcement, and our federal partners. We thank the United States Attorney’s Office Eastern District, Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Raleigh/Wake City-County Bureau of Identification, and the United States Marshals Service for their strong partnership.”
“ATF has a long history with outlaw motorcycle gangs, recognizing that these groups are often tied closely with a number of criminal acts, including gun violence, firearms trafficking, and drug trafficking.” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Bennie Mims. “This was a strategic, collaborative effort focused on disrupting a dangerous and violent criminal network.”
Through the course of this investigation, it was determined that Baker was the leader of the Pagan Motorcycle Club (“PMC”) in North Carolina, a wholly illegitimate criminal enterprise. The PMC is recognized internationally by law enforcement as an Outlaw Motorcycle Gang ("OMG") criminal enterprise that has leaders across the United States of America and Puerto Rico. The PMC has a long history of drug trafficking, firearms trafficking, and violence in the areas where it operates.
Baker has been described as the leader of the North Carolina PMC. According to numerous law enforcement intelligence units, he is believed to have previously held the rank of President of the Raleigh chapter of the PMC prior to becoming a “13.” Baker was responsible for the acquisition and distribution of kilogram quantities of methamphetamine for the Drug Trafficking Organization (“DTO”) linked to the PMC. Baker’s DTO is responsible for the distribution of methamphetamine and firearms across multiple states, including North Carolina.
In his Pagan leadership position, Baker directed members of his organization in distributing and selling methamphetamine in Raleigh and surrounding areas. Baker’s sources of supply for methamphetamine and firearms lived in the Atlanta area, and he would have various members of the Pagans drive him from North Carolina to the Atlanta area to pick up methamphetamine and firearms for distribution in North Carolina and surrounding states.
Baker also routinely used and directed violence to promote his narcotics trafficking. Baker was frequently armed; examples of his violence include the directed torture of a Pagan pledge who allegedly stole from another member. In this case, the pledge’s fingers were cut off using a table saw. Baker also directed the murder of an individual who sold him fake drugs. Raleigh Police and ATF had to place that individual into protective custody.
The prosecution of Baker was a part of Organized Crime and Drug Enforcement Task Force Operation (OCDETF) Diamond Ice. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. This investigation spanned into the West Virginia, South Carolina, and Georgia areas where kilogram quantities of methamphetamine were distributed into Raleigh utilizing a complex network of Pagans in surrounding states who have also been indicted in this case. Twenty individuals, including Baker have been indicted. Seven defendants have been convicted and sentenced, and nine others are awaiting sentencing.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Raleigh Police Department led the investigation with assistance from the Federal Bureau of Investigation, Raleigh/Wake City-County Bureau of Identification and United States Marshals Service. Assistant U.S. Attorneys Kelly L. Sandling and Robert Dodson prosecuted the case.
Other agencies involved in the investigation include the N.C. Highway Patrol, the Virginia State Police (VSP), the Dekalb County Police Department (GA), the Barrow County Sheriff’s Office (GA), the Georgia State Patrol (GSP), the Gwinnett County Police Department (GA), the Cleveland County Sheriff’s Department (NC), the S.C. Highway Patrol, the Craven County Sheriff’s Office (NC), the Lexington County Sheriff’s Department (SC) and the Reidsville Police Department (NC).
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-cr-00434-M-1.
Media Advisory – Press ConferenceRead the Press Release
RALEIGH, N.C. – United States Attorney Michael Easley, along with representatives from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Raleigh Police Department, will hold a press conference TOMMOROW, Friday, February 3 at 11:00 a.m. to announce the sentence of Christopher Lamar Baker, a national leader of the Pagan Motorcycle Club (PMC) who was convicted last year of drug trafficking, firearm, and money laundering charges. The PMC is recognized by law enforcement as an Outlaw Motorcycle Gang.
WHERE: U.S. District Courthouse, 310 New Bern Avenue, Raleigh, NC 27601
WHEN: Friday, February 3 at 11:00 a.m.
Media: please arrive at the courthouse by 10:30 for set up.
Credentialed members of the media are invited to attend. For additional information, please e-mail Don Connelly at [email protected].
Please RSVP your intentions to attend the event.
Man Sentenced to 10-Year Statutory Maximum for Drive-By ShootingRead the Press Release
WILMINGTON, N.C. – Edward Dominique Devone was sentenced yesterday to 10 years in prison followed by 3 years of supervised release for possession of a firearm by a felon after opening fire during a drive by at a group of individuals in Dunn, North Carolina. This is the statutory maximum sentence available for this offense.
According to court documents and other information presented in court, on December 19, 2020, Dunn Police Department (DPD) were patrolling the downtown businesses in Dunn, North Carolina, when they heard approximately ten shots fired in the area of East Harnett and East Vance Streets. Officers notified dispatch of the shooting and observed a vehicle run the stop sign at the intersection of East Vance Street and North Clinton Street. A traffic stop was initiated of the vehicle. Upon pulling up behind the vehicle, officers observed the back passenger door of the vehicle open and Devone exit the car with his hands up stating, “I didn’t do it.” A female was driving the car. Officers asked her to step out of the car. As the female was exiting the car, officers observed an AK-47 (7.62 caliber Norinco semi-automatic rifle) on the floorboard behind the driver seat in plain view and a black .40 caliber handgun tucked in the back seat pocket on the passenger side seat with part of it visible. Upon securing the firearms from the vehicle, officers noted that the handgun was unloaded but warm to the touch, and the smell of fresh gun powder consistent with a recently fired firearm was present. The rifle was fully loaded.
Officers traveled to the scene of the reported shooting and searched the 400 block of East Vance Street and spoke with an individual who advised the shooting occurred in front of his residence. The homeowner told officers that a female and several men were visiting in front of his house when a car rode by and started shooting. Officers located eight spent .40 caliber shell casings in the roadway in front of his house. The .40 caliber handgun was test fired and a comparison was done between the .40 shell casings recovered from the scene and the shell casing from the bullet used to test fire the handgun and they were a match.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing was concluded. Chief U.S. District Judge Richard E. Myers II presided over the sentencing. Dunn Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Jennifer May-Parker prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or PACER by searching for Case No. 5:22-CR-00077-M.
Illinois Medical Device Manufacturer Agrees to Pay $500,000 to Resolve Allegedly Fraudulent Medicaid ClaimsRead the Press Release
RALEIGH, N.C. – United States Attorney Michael Easley announced today that Joint Active Systems, Inc. (JAS), a manufacturer of range-of-motion devices located in Effingham, Illinois, has agreed to pay $500,000 to settle civil claims under the Federal and North Carolina False Claims Acts concerning allegations that JAS caused submission of false claims to the North Carolina Medicaid program for certain durable medical equipment.
Specifically, the United States and the State of North Carolina alleged that from January 6, 2012 through January 29, 2021, JAS was unable to directly bill North Carolina Medicaid for its “EZ” range-of-motion devices because JAS did not meet North Carolina Medicaid requirements and/or lacked credentials necessary to do so. JAS allegedly bypassed those requirements—and its concomitant inability to bill North Carolina Medicaid directly—by entering into arrangements with local North Carolina orthotics and prosthetics providers to bill EZ devices on its behalf. JAS allegedly directed the local North Carolina orthotics and prosthetics providers to improperly submit claims for JAS EZ devices as orthotics using “L-Codes” under the Healthcare Common Procedure Coding System (“HCPCS”), thereby bypassing the medical necessity reviews and/or authorization processes that may have otherwise taken place. The Governments alleged that the JAS EZ devices did not qualify for reimbursement as “L-Code” orthotics under North Carolina Medicaid, and that the JAS EZ devices were not listed as reimbursable devices on the North Carolina Medicaid fee schedule. Indeed, JAS received an official coding verification from the Centers for Medicare and Medicaid Services that designated one of JAS’s EZ devices as an “E-Code” (durable medical equipment) device, not as an “L-Code” (orthotic) device. The Governments alleged that JAS nevertheless continued to use local North Carolina providers to bill its EZ devices as “L-Code” devices. In turn, JAS allegedly would pay the local orthotics and prosthetics providers by allowing them to retain a certain amount of the reimbursement.
“The Department of Justice is actively pursuing health care companies and medical device manufacturers who overcharge government healthcare programs,” said United States Attorney Michael Easley. “We cannot allow companies to bypass rules and regulations to enrich themselves, while depleting taxpayer funds set aside for legitimate patient care.”
“My office’s Medicaid Investigations Division will hold accountable Medical device manufacturers who drain resources from our government healthcare programs, no matter how elaborate and layered the scheme may be,” said North Carolina Attorney General Josh Stein.
The Federal and North Carolina False Claims Acts authorize the Governments to recover triple the money falsely obtained, plus substantial civil penalties for each false claim submitted.
It should be noted that the civil claims resolved by settlement here are allegations only, that there has been no judicial determination or admission of liability, and that JAS denies the allegations.
This matter was investigated by the United States Attorney’s Office for the Eastern District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office (“MID”). Special Deputy Attorney General Matthew R. Petracca, who also serves as a Special Assistant United States Attorney, represented the United States and the State of North Carolina.
The United States Attorney’s Office for the Eastern District of North Carolina, in partnership with law enforcement agencies and state entities, investigates and prosecutes healthcare providers that defraud government programs, including Medicare and Medicaid, and abuse their patients. The Medicaid Investigations Division investigates and prosecutes healthcare providers that defraud the Medicaid program, patient abuse of Medicaid recipients, patient abuse of any patient in facilities that receive Medicaid funding, and misappropriation of any patients’ private funds in nursing homes that receive Medicaid funding. To report Medicare fraud or patient abuse in North Carolina, please visit the United States Department of Health and Human Services’ website at https://oig.hhs.gov/fraud/. To report Medicaid fraud or patient abuse in North Carolina, please call the MID at 919-881-2320.
Raleigh Physician Found Guilty of Using Adulterated and Insanitary Medical Equipment on Patients During Nasal SurgeriesRead the Press Release
RALEIGH, N.C. – After a three-week federal jury trial, and 5 hours of jury deliberation, Anita Louise Jackson, 59, was found guilty on charges of adulterating medical devices for use on patients with intent to defraud and mislead, fabricating medical and healthcare records, paying illegal renumerations, mail fraud, and conspiracy. Jackson was convicted of using re-used devices to perform more than 1400 surgeries for Medicare patients between 2011 and the end of 2017. After the verdict, Jackson was taken into custody pending sentencing.
“This doctor put profit ahead of patients, luring in Medicare patients with free “sinus spas” and risking infection to those patients by reusing the same single-use surgical devices on them again and again,” stated Michael Easley, U.S. Attorney. “If we allow doctors to bilk Medicare to pad their profits by performing unsupported medical procedures— each and every American taxpayer eats the cost. But the harm is most felt by the victim-patients who deserved better, and the elderly Americans on Medicare who are entitled to quality care. Jackson’s blatant disregard for her patients’ health has led to her conviction on multiple federal charges. My office is proud to work with the investigative agencies that helped bring this woman to justice.”
Jackson was an Ear Nose and Throat doctor who operated Greater Carolina Ear, Nose, and Throat (GCENT), with offices in Raleigh, Lumberton and Rockingham. Between 2011 and the end of 2017, Jackson preformed 1,555 balloon sinuplasty surgeries on 919 Medicare beneficiary patients. Balloon sinuplasty is an in-office surgery to treat chronic sinusitis. The FDA has cleared the Entellus XprESS device to be used in the performance of balloon sinuplasty procedures, but only on one patient, during one surgery. After that, the device must to be discarded. But, between 2012 and 2017, Jackson obtained, at most, 36 new Entellus devices, despite being, at times, the top-paid Medicare provider of balloon sinuplasty services in the United States. The evidence showed that Jackson misled and did not inform her patients that they were receiving a procedure with an adulterated device. The evidence also showed, and the defendant admitted on cross-examination, that she had sufficient money to buy every patient a new device -- but chose not to do so.
Jackson billed Medicare more than $46 million dollars for the balloon sinuplasty procedures between 2014 and 2018. She netted more than $4.79 Million from Medicare for these surgeries alone. That amount does not include any sinuplasty surgeries performed on patients with private health care insurance, other than Medicare, and monies received from Medicare prior to that time. The jury ordered forfeiture in the amount of $4,794,039.31 Million.
“The FDA continues in its commitment to aggressively pursue those who deviate from required standards of use for medical devices,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “We will remain vigilant in our efforts to protect consumers from potentially dangerous products.”
Jackson was also convicted on 10 counts of illegally inducing her patients to receive the sinuplasty surgery, by failing to collect the portion of the surgery that the patient was required to pay – the co-pay. Jackson, through her employees, marketed the sinuplasty surgery as a “sinus spa.” In doing so, Jackson induced her patients to come to the office for a “free” sinus spa, induced her patients to receive a treatment they may not need, or may not have agreed to, had the full out-of-pocket cost to the patient been disclosed. In an effort to continue obtaining patients for the procedure, Jackson wrote-off, or otherwise hid, the full cost of the procedure on any bills sent to the patient after their visit to GCENT. The patient portion of the sinuplasty surgery could be as high as $1,500 for Medicare beneficiaries, which the jury found was not disclosed to patients.
Jackson was also convicted of three counts of making false statements relating to health care benefits, two counts aggravated identity theft, and three counts of mail fraud. Between 2017 and 2018, Jackson became the subject of three audits by Medicare contractors. The evidence showed, and the jury found, that the defendant fabricated medical records supplied to auditors in an effort to keep more than $1.7 million that had already been paid to her by Medicare. The jury convicted Jackson of fabricating and modifying medical records to justify the billing of balloon sinuplasty surgeries to Medicare auditors. Two aggravated identity theft counts related to the defendant’s knowing use of forged patient signatures on documents in which patients allegedly declared that they received surgeries from the defendant, and that they needed them. The defendant’s Mail Fraud convictions pertained to her fraudulent use of fake medical records to deceive auditors, and to deceive a fellow physician. The defendant was also convicted for tricking a fellow ENT physician into signing a sworn statement that her medical documentation supported her prior balloon sinuplasty surgeries.
The defendant was convicted of conspiring with her staff to commit device adulteration, to pay illegal remunerations, to make false records, and to commit mail fraud.
"It is disturbing when fraudsters exploit vulnerable Medicare enrollees and defraud federal health care programs for personal gain,” said Special Agent in Charge Tamala E. Miles of U.S. Department of Health and Human Services Office of Inspector General. “Today’s verdict in this case shows that our agency, working with our law enforcement partners, will continue to hold bad actors accountable and protect both Medicare and those served by this program.”
“Dr. Jackson corrupted her integrity and violated patient trust by putting profits ahead of quality care,” said Christopher Dillard, the Special Agent in Charge of the DoD Office of the Inspector General, Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “DCIS will continue to work with its partners to root out fraud within the Department of Defense's TRICARE program.”
The federal jury convicted Jackson on all 20 counts in the indictment, which included: Count 1 – Device Adulteration 21 U.S.C. § 331(k), 21 U.S.C. § 333(a)(2) and 21 U.S.C. § 35l(a)(2)(A); Counts 2-11 – Illegal Renumerations 42 U. S. C. § 1320a-7b(b)(2)(B) and 18 U. S. C. § 2; Counts 12-14 – Making False Statements Relating to Health Care Benefits 18 U.S.C. § 1035(a)(2); Counts 15-16 – Aggravated Identity Theft 18 U.S.C. § 102A(a)(1); Counts 17-19 – Mail Fraud 18 U.S.C. § 1341; and Count 20 – Conspiracy 18 U.S.C. § 371.
Jackson faces a maximum term of imprisonment of 20 years for Mail Fraud, 10 years for Paying Illegal Remunerations, and 5 years for Conspiracy and Making False Statements, and three years for Adulteration with the intent to defraud or mislead. Aggravated Identity Theft carries a 2-year mandatory prison sentence, consecutive to any other punishment. Jackson also faces fines exceeding $250,000.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after United States Judge James C. Dever III published the verdict. The United States Department of Health and Human Services Office of the Inspector General (HHS-OIG), the United States Food and Drug Administration Office of Criminal Investigations (FDA-OCI), and the Department of Defense Office of Inspector General, Defense Criminal Investigative Service lead the investigation. Assistant U.S. Attorneys William Gilmore and Karen K. Haughton prosecuted the case.
The U.S. Attorney’s Office in the Middle District has a pending civil action against Jackson, in case captioned: United States of America and the State of North Carolina ex rel. Lee M. Mandel, MD, FACS, and Erin Craig v. Anita Louise Jackson, MD and Greater Carolina Ear, Nose & Throat, P.A., No. 17-cv-925 (MDNC).
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-cr-00259-D.
Havelock Man Sentenced to 7 ½ Years in Prison for Receiving Child PornographyRead the Press Release
WILMINGTON, N.C. – William McCoy was sentenced today to 90 months in prison for receipt of child pornography. McCoy, 26, pled guilty to the charge on July 27, 2022.
According to court documents and other information presented in court, on February 24, 2021, Investigators at Marine Corps Air Station Cherry Point received a CyberTip from the National Center for Missing and Exploited Children (NCMEC) regarding activity on Facebook Messenger. The user had been identified as William McCoy, who was then a lance corporal stationed at Cherry Point.
The CyberTip showed that in chats dated January 31, 2021, McCoy and 16-year-old female Victim-1 had discussed previously having sexual intercourse. McCoy referred to a video recording of the encounter and had instructed Victim-1 to watch a video.
On March 2, 2021, an NCIS agent obtained command authorization to search McCoy and his living space, including digital devices. Agents met McCoy at his commanding officer’s office and seized from McCoy’s person a Samsung Galaxy Note phone.
McCoy waived his rights and agreed to a video recorded interview. He stated he had dated Victim-1, who he claimed was 22 years old. He stated that they had been dating for six months and were sexually active. McCoy gave permission for his phone to be searched, and agents saw multiple sexually explicit photos of Victim-1, as well as a video in which McCoy and Victim-1 are masturbating together over the video chat application Google Duo. Agents found a phone number for Victim-1, who they contacted and confirmed was currently 17 years old. McCoy admitted that he lied about Victim-1’s age, that he found out her true age in November 2020, and that they had sexual intercourse in December 2020.
A digital forensic examiner reviewed McCoy’s Samsung Galaxy Note cellphone and found over 50 image files and 150 video files that appeared to depict Victim-1 in child exploitative poses. Of these, 11 images and 47 videos were confirmed to be child pornography based on content through which the subject could be identified as Victim-1 and therefore a minor. It is believed that all photos were of Victim-1; no other minors were identified within the photos.
Subsequent investigation determined that McCoy had solicited, and in some cases received, sexual photos from at least three other minor females who were connected to Victim-1. At the same time, McCoy sent photos and videos depicting his penis to minor females, and some were able to describe his military quarters to investigators.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. Naval Criminal Investigative Service (NCIS) investigated the case, which Assistant U.S. Attorney Jake D. Pugh prosecuted.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:22-cr-00001-M.
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Armed Robber Who Used Fake Car Ads on OfferUp to Rob Family Sentenced to More than 15 Years in PrisonRead the Press Release
WILMINGTON, N.C. – A Goldsboro man was sentenced today to 181 months in prison, five years of supervised release and more than $1500 in financial restitution for charges associated with multiple successful and attempted armed robberies between the months of August and September of 2019, sometimes using fake ads on the online application, “OfferUp,” to bring victims to a location where they were robbed and assaulted. On October 19, 2022, Daekwon Sample, 25, also known as “Kwon,” pled guilty to the firearm and robbery charges.
“This robber and his accomplices used fake online car ads to lure victims to a location where they robbed the victims at gunpoint, even firing shots at one victim who had his minor child with him while another victim and minor child were threatened at gunpoint in the car,” said. U.S. Attorney Michael Easley. “The members of this robbery crew have hitched a ride to a lengthy stay in federal prison. But this case is a reminder for consumers to be cautious when arranging meetings to retrieve goods purchased online. You should only arrange to meet in public, well-lit locations where there will be other people around. And make sure a friend or family member knows where you are going and who you are meeting.”
According to court documents and information presented in court, officers with the Goldsboro Police Department (GPD) responded to a report of an assault and robbery in August 2019. A couple contacted an unknown subject through OfferUp at a Mimosa Street residence in Goldsboro, with the intention of purchasing a vehicle. The couple arrived at the location with their two minor children and the seller, later identified as Sample, and co-defendant Jaquan Melvin, robbed the victims at gunpoint of more than $1,300. Shots were fired at the feet of one of the victims before fleeing the scene. Approximately a month later near the same residence, a pizza delivery driver was assaulted and robbed by Sample and another individual, later identified as co-defendant Isaiah Kornegay.
The same evening of the pizza robbery at the Mimosa Street residence, the robbery crew struck again, in a similar, fake transaction initiated through OfferUp assaulting the interested buyer. The victim told police that Kornegay brandished a firearm as he fled from the assault.
On September 11, 2019, undercover officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) posed as buyers of a vehicle posted from the OfferUp account used in the previous robberies. The seller directed the agents to meet at the Mimosa Street residence. When agents arrived at the residence, they immediately arrested Sample. Kornegay fled but was found nearby and arrested the same night. Melvin fled the scene and was found and arrested the next month. Further investigation revealed that Kornegay created the “Offer Up” account used in the robberies.
Kornegay previously pled guilty and was sentenced to 97 months in custody, three years of supervised release and financial restitution. Melvin previously pled guilty and was sentenced to 171 months in custody, five years of supervised release and financial restitution.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the Goldsboro Police Department investigated the case and Assistant U.S. Attorneys Brandon Boykin and Bryan M. Stephany prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-cr-00319-M.
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North Carolina Man Sentenced for Misappropriating Identities to Defraud Federal Student Aid ProgramRead the Press Release
RALEIGH, N.C. – A Clayton, North Carolina man, Jerry Lynn Johnson, Jr., was sentenced today to 53 months in prison and three years of supervised release for organizing and leading a fraudulent scheme to obtain, and attempt to obtain, over $400,000 in federal financial aid funds. On August 2, 2022, Johnson pleaded guilty to the charge of mail fraud and aiding and abetting. As part of the judgment, Johnson was also ordered to pay $289,403 in criminal restitution to the U.S. Department of Education (ED).
“This defendant fraudulently used other people’s identities to apply for student aid to attend numerous colleges, taking advantage of a system meant to help poor and disadvantaged citizens get a college education,” said U.S Attorney Michael Easley. “We should be proud to live in a country that has programs in place to help people fulfill their dreams of attending college. We will zealously guard the integrity of those programs and prosecute those who take advantage of our country’s generosity to line their pockets at taxpayer expense. let this be a warning to financial fraudsters - scamming our education system will get you a full ride to federal prison.”
"I’m proud of the work of OIG special agents and our law enforcement colleagues for shutting down yet another student aid fraud ring and holding the ringleader accountable for his criminal actions,” said Terry Harris, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office. “The OIG is committed to fighting student aid fraud, and we will continue to aggressively pursue those that participate in these types of crimes."
Federal Student Aid (FSA) is the ED office responsible for administering financial aid programs to assist qualified students with pursuing post-secondary education, including grants, loans, work study funds, and other disbursements. FSA also develops, distributes, and processes the Free Application for Federal Student Aid form or “FAFSA”. After a school applies a financial award to a student’s tuition and fees, any remaining balance is refunded to the student for education-related expenses.
According to court documents and other information presented in court, between approximately 2016 and 2019, Johnson used the personal identifying information of multiple individuals— “straw students”—to falsely and fraudulently apply for financial aid to attend various post-secondary schools, including American Public University in Charles Town, West Virginia, Grand Canyon University in Phoenix, Arizona, and Southern New Hampshire University in Manchester, New Hampshire. Johnson submitted the FAFSA in the names of the straw students while concealing his identity as the preparer. After the financial aid packages were approved, Johnson assumed the identities of the straw students to enroll them in classes, complete required coursework, and otherwise maintain the illusion of attendance and bona fide efforts to complete the chosen degree program for the purpose of enriching himself with the associated student aid refunds. In furtherance of the scheme, Johnson diverted over $190,000 in refunds to North Carolina addresses under his control.
Michael Easley, United States Attorney for the Eastern District of North Carolina, made the announcement after sentencing by United States District Judge Louise W. Flanagan. The U.S. Department of Education, Office of Inspector General, investigated the case. Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:21-CR-61-FL.
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Assault of a TSA Officer at RDU Airport Gets Man 37 Months in Federal PrisonRead the Press Release
WILMINGTON, N.C. – A Raleigh man, Adonis Fabian Zorrilla, was sentenced today to 37 months in prison, 3 years supervised release, and $4,103.35 in restitution for assaulting a Transportation Security Administration (TSA) officer at Raleigh-Durham International (RDU) Airport.
According to court documents and other information presented in court, Zorrilla, 27, and a traveling companion went through a security checkpoint at RDU airport on March 6, 2022. TSA officers pulled their bags for additional screening and discovered 17 false identification cards with Zorilla’s photo and a variety of names. Zorrilla grabbed the TSA officer’s arm and unsuccessfully attempted to wrestle the identification cards from her, tearing one of the TSA officer’s ligaments in the scuffle. Zorrilla then fled RDU airport without his shoes or other belongings as those remained at the security checkpoint. On April 29, 2022, Zorrilla was arrested for Forgery in Bibb County, Georgia, and brought to the Eastern District of North Carolina to face this charge. On August 9, 2022, Zorrilla pled guilty to the charge.
Zorrilla has prior felony convictions in North Carolina for Common Law Robbery, Possession with Intent to Sell and Deliver Heroin, Identity Theft, and Trafficking Stolen Identities, as well as a conviction for Reckless Driving to Endanger.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Federal Bureau of Investigation (FBI) and the RDU Police Department investigated the case and Assistant U.S. Attorney Brad DeVoe prosecuted the case. Additional assistance was provided by TSA.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:21-CR-33-BO.
North Carolina Businessman Pleads Guilty in Multi-Million Tax Fraud CaseRead the Press Release
WILMINGTON, N.C. – Christopher Scott Harrison, 56, of Fayetteville, N.C., pled guilty today to willfully filing a false tax return with respect to nearly $25 million in unreported income he paid to himself from his company.
“This businessman tried to dodge paying millions in federal taxes by disguising personal luxuries as business expenses. Harrison diverted company funds to buy nearly a million dollars worth of bling, including an estimated $145,000 Rolex watch, $102,000 Cartier diamond necklace, and $85,000 Tiffany bracelet,” said U.S. Attorney Michael Easley. “Wealthy tax cheats cannot be allowed to line their pockets at the expense of hardworking American taxpayers.”
According to the criminal information and evidence summarized in Court, Harrison became the CFO and majority owner of an insurance and Human Resources benefits business, Ebenconcepts. Beginning at least as early as 2012, Harrison began to lavishly spend company funds for his own benefit, for example purchasing a watch for approximately $145,000 and spending approximately $300,000 of company funds for a swimming pool at his residence. As these expenditures came to light, Harrison filed for Chapter 11 bankruptcy. During the bankruptcy proceedings, an accounting firm retained by the Bankruptcy Trustee discovered almost $25 million in personal expenditures attributable to Harrison reported as business expenses between tax years 2012 and 2018. Harrison filed false personal returns over that period, which failed to report the income, leading to almost $6 million in uncollected federal income taxes.
“The IRS enforces the nation's tax laws, but also takes particular interest in cases where someone does not pay their fair share in taxes by intentionally not reporting all their income,” said Donald “Trey” Eakins, Special Agent in Charge of the IRS Criminal Investigation’s Charlotte Field Office. “IRS Criminal Investigation is proud to work with our law enforcement partners by lending its expertise in these complex financial investigations.”
Harrison pleaded guilty to Willfully Filing a False Tax Return. He faces up to three years in prison, restitution to the IRS and a potential fine. Sentencing before United States Chief District Judge Richard E. Myers II is scheduled to occur in the Spring.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after Chief U.S. District Judge Richard E. Myers II accepted the plea. Internal Revenue Service (IRS) Criminal Investigation is leading the investigation, and Assistant U.S. Attorney David G. Beraka is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-cr-00309-M.
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Federal Inmate Indicted on Drug ChargesRead the Press Release
RALEIGH, N.C. – A federal grand jury returned an indictment Friday charging a Florida man, currently a federal inmate serving a sentence, with possession of contraband (Buprenorphine) in prison, and possession with intent to distribute Buprenorphine.
According to the indictment, Juan Martir, a federal inmate serving his sentence at the Federal Correctional Complex in Butner, North Carolina (“FCC Butner”) had 45 individually wrapped pieces of Buprenorphine, a schedule III-controlled substance. Also found with Martir were numerous books of stamps, individual stamps, and a notebook with names of fellow inmates. If convicted, he faces a maximum penalty of 20 years for each count.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Prisons is investigating the case and Special Assistant United States Attorney Mallory Brooks Storus is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
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Wake County Man Sentenced to 15 Years After Shooting into Public Safety Center in Downtown RaleighRead the Press Release
NEW BERN, N.C. – United States Attorney Michael Easley announced that a Cary man was sentenced today to 181 months in prison after carjacking a woman at gunpoint and firing multiple shots at the Wake County Public Safety Center in downtown Raleigh. Willie Lee Hayes, Jr., 51, pled guilty to the charges.
“Hayes was an armed and dangerous felon with lengthy criminal history who put law enforcement and the public at risk,” said U.S. Attorney Michael Easley. “Let today’s 15-year sentence stand as a warning. Our office is prioritizing the prosecution of repeat felons driving gun violence in our communities.”
“The Wake County Sheriff’s Office would like to thank the US Attorney’s Office for their diligence in bringing this case to a successful conclusion,” stated Sheriff Willie L. Rowe. “The actions of Willie L. Hayes, Jr. on October 6, 2020 put the lives of several members of the public as well as staff members of our office in grave jeopardy. It is a miracle that none of the bullets fired by Mr. Hayes directly struck any of the numerous people in the vicinity. We would also like to thank our partners with the Raleigh Police Department, Cary Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and others for their assistance with this case.”
“The Raleigh Police Department expresses gratitude to the Department of Justice for their due diligence in prosecuting this case,” said Raleigh Police Chief Estella Patterson. “We are thankful no one was seriously injured in this violent act against the Wake County Sheriff’s Office and several other public safety agencies. An act of violence against any public safety partner is an act of violence against our entire community. Our department is committed to collaborating with other agencies to bring justice to those who harm our communities.”
According to court documents and other information presented in court, on October 6, 2020, at around 3:00 pm, a white Dodge Journey stopped on Salisbury Street in Raleigh in front of the John H. Baker Public Safety Center. The Public Safety Center houses the detention center, Emergency Medical Services (EMS), Fire Services, the City-County Bureau of Identification, and the Wake County Sheriff's Office. A man, later identified as Hayes, stepped out of the right front passenger seat and pulled out a handgun. He fired multiple shots toward the front of the building, where several people were present. Shots hit the building’s front door and windows. While no one was hit, falling glass from a broken window injured a Wake County Deputy’s leg. Hayes got back into the car, which fled South on Salisbury Street away from the scene. Officers recovered 12-9mm shell casings from the road.
A witness provided officers with a license plate number, and a registration check revealed that the car was registered to Hayes and a woman with the initials J.N., both listed as sharing an address on Rose Street in Cary. Officers soon located J.N. driving the Dodge Journey near the home. During an interview, J.N. explained that she purchased a Stoeger 9mm pistol about two weeks prior but hadn’t seen it for around a week. Before the shooting, Hayes asked her to come pick him up and take him to a gas station. But during the drive, Hayes pulled out the 9mm handgun and demanded that she drive him to the Wake County courthouse (referring to the Public Safety Center). He said that if she stopped the vehicle for any reason, he would shoot her. When she arrived in front of the courthouse, Hayes opened the font passenger door of the vehicle and began firing. Hayes then told her to drive away and not to stop until they were back home. She had dropped him off at the house and had just left when officers stopped her car.
Deputies surrounded the Rose Street residence and took Hayes into custody. They executed a search warrant and found the Stoeger 9mm pistol in the seat of a moped. J.N. was shown a photograph of the firearm and confirmed it to be her pistol that Hayes had used to shoot the courthouse.
At the time of the shooting, Hayes’ criminal record included five state felony drug convictions, three convictions for assault on a female, and a felony conviction for assault with a deadly weapon inflicting serious injury. He had previously been convicted as a habitual felon in state court.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Raleigh and Cary Police Departments, Wake County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. Assistant U.S. Attorney Jake D. Pugh prosecuted.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-0499-FL.
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Violent Drug Dealer Who Threatened Law Enforcement Receives 9 Years in Federal PrisonRead the Press Release
RALEIGH, N.C. – Joseph Michael Wilson, also known as “Mike Mike,” 37, of Kinston North Carolina, was sentenced to 108 months in prison for two counts of distribution of a quantity of cocaine. Wilson pled guilty to the charges on November 15, 2022.
“Law enforcement officers put their lives on the line to protect our communities day in and day out,” said U.S. Attorney Michael Easley. “They deserve our utmost respect. This defendant, a violent drug dealer, threatened not only the officers, but also their families. Now he will be spending the next nine years in prison.”
“The Kinston Police Department is committed to working with our federal, state and local law enforcement partners to make our communities safer,” said Interim Kinston Police Department Chief Keith Goyette. “On behalf of the men and women of the Kinston Police Department as well as our citizens, I want to extend my sincere thanks to U.S. Attorney Michael Easley Jr. and his staff at the U.S. Attorney’s Office for the Eastern District of North Carolina for partnering with us to combat crime and prosecute violent offenders within our community. Cases like this demonstrate the overall strategy and uncompromising determination to eliminate the drug and violent crime plaguing our community.”
According to court documents, evidence presented in court, and other documents, on June 15 and June 20, 2022, the Kinston Police Department made controlled purchases of cocaine from Wilson. Both deals occurred in an area known as the “Kurve” on South Adkins Street in Kinston.
On July 14, 2022, Wilson was arrested at a residence on Falling Creek Road. Law enforcement searched the residence and found additional cocaine.
The investigation also revealed that prior to his arrest on these charges, Wilson posted several threats against law enforcement on social media, including posting pictures of officers and their families.
Wilson has prior state felony convictions for Voluntary Manslaughter in 2006, Assault with a Deadly Weapon with Intent to Kill in 2006, and Assault Inflicting Serious Bodily Injury in 2015.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Kinston Police Department investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:22-CR-00040-BO.
Texas Couple Pleads Guilty to Orchestrating an Extensive Multi-Million COVID-19 Fraud Scheme in North CarolinaRead the Press Release
RALEIGH, N.C. – Edward Whitaker, 55, and Schunda Coleman, 50, pleaded guilty today to conspiracy to commit money laundering for their role in helping dozens of North Carolina residents fraudulently obtain Paycheck Protection Act (“PPP”) COVID-19 loans.
“This couple orchestrated a vast scheme to steal taxpayer money meant to help small businesses weather a global pandemic,” said U.S. Attorney Michael Easley. “Now, they are facing up to 20 years in federal prison. We are vigorously pursuing criminals who ripped off public programs for profit while the pandemic crippled local businesses.”
The married couple from Edinburg, TX, operated a nation-wide scheme to help people across the country commit PPP fraud. According to the criminal complaint and information summarized in court, Whitaker and Coleman created fraudulent supporting documents and applications for PPP loans, which they provided to individuals for a fee. In addition to supplying the documents, the pair assisted “clients” in falsifying the number of employees and gross wages paid by a company prior to the COVID pandemic, in order to help them qualify for a PPP loan. Whitaker would instruct these individuals on how to make it appear that the PPP loan was being paid out to employees, which in reality the money was transferred back to the client.
According to the criminal information, Whitaker and Coleman collectively facilitated the fraudulent disbursement of more than $15 million in PPP and Economic Injury Disaster Loan Program (EIDL) loans. To further promote the scheme, the couple utilized middlemen, who were in turn paid a fee, to recruit additional individuals to submit fraudulent loan applications.
Late last year, Quentin Jackson pled guilty in the same conspiracy for both utilizing Whitaker and Coleman to obtain his own fraudulent PPP loans, as well as for recruiting additional individuals in the Eastern District of North Carolina to use Whitaker and Coleman to obtain fraudulent PPP funds. Jackson ultimately recruited over a dozen individuals to obtain fraudulent PPP loans through Whitaker and Coleman’s scheme.
“The PPP and EIDL programs did not create a limitless pot of money”, said Special Agent in Charge, Donald “Trey” Eakins, IRS Criminal Investigations, Charlotte Field Office. “Economic relief efforts were meant to assist those in most need who have been affected by the COVID-19 pandemic. Criminals think these funds are an easy target to take advantage of innocent people. Be assured that IRS Criminal Investigation, together with our law enforcement partners and the U.S Attorney’s Office, will hold those accountable who engage in similar behavior.”
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to the millions of Americans who were economically suffering from the COVID-19 pandemic. The CARES Act and additional appropriations authorized up to $649 billion in forgivable loans to small businesses through the Paycheck Protection Program (PPP). Financial institutions issued the PPP loans, which were guaranteed by the Small Business Administration (SBA).
Whitaker and Coleman both pleaded guilty to Conspiracy to Commit Money Laundering in violation of 18 U.S.C. § 1956(h) and face up to 20 years in prison and a potential fine.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after United States Magistrate Judge Robert T. Numbers II accepted the plea. Internal Revenue Service (IRS) Criminal Investigation is leading the investigation, and Assistant U.S. Attorneys David G. Beraka and Karen K. Haughton are prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-cr-00257-D.
Shooting Near Federal Courthouse in Elizabeth City Gets Man 8.5 Years in Federal PrisonRead the Press Release
RALEIGH, N.C. – An Elizabeth City man was sentenced today to 103 months in prison for being a felon in possession of ammunition. On October 18, 2022, Amos Dekendric Parker, also known as “Bay Bay,’ pled guilty to the charges.
According to court documents and other information presented in court, Parker, 36, and another man, Tavori Ditron Lindsey, were involved in an early morning shooting on September 5, 2021, at the intersection of East Colonial Avenue and McMorrine Street in Elizabeth City, which is about a block away from the federal courthouse in Elizabeth City. Street cameras captured the shooting and showed Parker and Lindsey engage in a verbal altercation with a man outside the Cue, a nearby establishment. Parker can be seen on video surveillance firing a handgun at another man as he fled the area on foot. Lindsey can also be seen shooting an AR-15 style rifle at the same man. The Elizabeth City Police Department (ECPD) quickly responded and noticed damage to a nearby building consistent with gun shots. Officers recovered several .223 caliber and .45 caliber shell casings in the street where the shooting occurred. The pair were arrested by ECPD and charged with state offenses and they were later indicted in federal court.
Parker is a convicted felon, having prior convictions for common law robbery, accessory after the fact of robbery with a dangerous weapon, and possession with intent to sell or deliver cocaine and marijuana, as well as several misdemeanor convictions.
Lindsey also pled guilty to being a felon in possession of ammunition. Lindsey is scheduled to be sentenced during the Court’s February 2023 term of court.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Federal Bureau of Investigation (FBI) and the Elizabeth City Police Department investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:21-CR-33-BO.
Robeson County Violent Drug Dealer Sentenced to 27 Years in PrisonRead the Press Release
NEW BERN, N.C. – Jamie Christopher Henderson, 47, of Robeson County, was sentenced to 27 years in prison today. The sentence followed a trial last year where a jury found him guilty of all charges for drug trafficking and illegal possession and use of guns to further his drug trafficking.
“Henderson is a former federal felon who went back to a life of crime. He shot two people at a local racetrack and was found to be trafficking narcotics with stolen handguns and an AR-15,” said U.S. Attorney Michael Easley. “His 35-year sentence should stand as a warning. Gun violence and drug trafficking will put you in the fast lane to federal prison.”
“The Robeson County Sheriff’s Office appreciates the hard work and efforts of the U.S. Attorney’s Office in prosecuting this particular case,“ said Robeson County Sheriff Burnis Wilkins. “This is yet another opportunity to rid our county of a dangerous drug trafficker and felon with a gun that continues to wreak havoc throughout the county. The Robeson County Sheriff’s Office remains committed to ridding our county of crime and this is an example of that commitment as we continue our partnerships with federal law enforcement.”
The investigation was initiated after reports of a shooting at the Thunder Valley Racetrack in Robeson County. Henderson shot two people at the racetrack, ran away, and obtained a ride from a local citizen. When the citizen refused to take Henderson any further down a dirt road, Henderson pulled out a handgun, shot the driver’s radio, and continued to run.
Robeson County Sheriff’s Office detectives continued to investigate and identified where Henderson was living and obtained a search warrant. As detectives approached, they saw Henderson toss a handgun under a car in the front yard. When recovered, the handgun was found to be loaded. Baggies of cocaine and crack were found next to the handgun. Inside of the house, detectives seized two more loaded handguns that were stolen, a loaded AR-15 style rifle, and more cocaine and crack along with baggies and digital scales for selling drugs.
Further investigation revealed a series of videos of Henderson at the house in the days leading up to the search warrant. In these videos, Henderson could be seen selling drugs at all times of the day and night. And in most videos, Henderson was armed with at least one handgun or a rifle. In some instances, Henderson could be seen with multiple firearms while pointing the rifle at approaching cars.
At sentencing, Henderson’s violent history with guns was highlighted. In 2005, he pled guilty in federal court to felon in possession of a firearm after he led detectives on a car chase while pointing a loaded rifle at them.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Robeson County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms investigated the case and Assistant U.S. Attorneys Tyler Lemons and Katherine Englander prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR-00088-FL.
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Man Sentenced to 10-Year Statutory Maximum After Shooting Two People and Leaving One for DeadRead the Press Release
WILMINGTON, N.C. – William Brian Coghill was sentenced this past Friday to 10 years in prison followed by 3 years of supervised release for possession of a firearm by a felon after shooting two acquaintances and leaving one for dead at his home in Oxford, North Carolina. This is the statutory maximum sentence available for this offense. Coghill also pleaded guilty to two counts of first-degree attempted murder in state court and was sentenced to 15 to 19 years.
According to court documents and other information presented in court, on August 14, 2021, Granville County Sheriff’s Office (GCSO) responded to a 911 call regarding a gunshot victim located at Fredrick Road, Oxford, North Carolina. Upon GCSO’s arrival, the first victim, who had a gunshot wound to his right arm, advised that he had been at the residence next door when he was shot. He was then transported via EMS to a local hospital. As deputies tried to find a blood trail to ascertain the first victim’s direction of travel, they heard a male voice groaning from the front porch area of Coghill’s home that he shared with his mother. A second male victim was located on the porch, doubled over, writhing in pain. Victim two had two gunshot wounds to his lower right side/back area and the front lower left abdomen area. The second victim was transported via Life-Flight to a local hospital.
Minutes after knocking at the doors and windows of the residence, Deputies were permitted inside by Coghill’s mother, and he was found hiding in the attic of the home with a shotgun. Deputies discovered two spent 9mm shell casings on the porch of the residence. Coghill’s mother later told deputies she witnessed her son take the shotgun in one hand, and a black pistol in his other hand, to the porch where the two victims were sitting and began pointing both the shotgun and the pistol at the victims. She stated that both victims begged Coghill not to shoot them. Coghill’s mother stated she was able to take the shotgun away from her son and took the shotgun to her bedroom. She returned to the porch and watched as her son pulled the trigger of the pistol, shooting the first victim, then turned the pistol toward the second victim, and fire again, striking him. Coghill then went into the house, turned out the lights, and forbid his mother from calling for help. The second victim spent several weeks in the hospital and was close to death at one point. He also underwent several surgeries.
Chief U.S. District Judge Richard E. Myers II presided over the sentencing. Granville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Jennifer May-Parker prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or PACER by searching for Case No. 5:22-CR-00030-M.
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Cary Man Indicted on 23 Counts of Wire Fraud and Money Laundering in Ponzi SchemeRead the Press Release
RALEIGH, N.C. – Kumar Arun Neppalli, 56, was arrested today upon the unsealing of a 23-count indictment in connection with an investment fraud scam. Neppalli faces up to twenty years in prison per count and potential fines.
According to the indictment, Neppalli allegedly relied on his good standing within the Indian-American community in Cary, North Carolina to defraud at least 12 victims or sets of victims into giving him funds under the false pretense that he would be investing their money in a legitimate real estate development in the Orange County, North Carolina area. Neppalli allegedly used the funds from these victims to pay back earlier investors who believed that he was returning their original investment and legitimate capital gains. Returning capital to earlier investors by defrauding new investors is commonly known as a “Ponzi” scheme.
“We are committed to protecting the investing public from financial schemes,” said U.S. Attorney Michael Easley. “The U.S. Attorney’s Office is working closely with the FBI to identify, investigate, and pursue those who cheat people out of their hard-earned money.”
As further alleged in the indictment, Neppalli would typically contact the victims telephonically or in person to describe a local real-estate investment opportunity, usually in Orange County. Neppalli allegedly leveraged his employment with the town of Chapel Hill to convince victims that he had insider knowledge of development plans with respect to the purported real estate. The indictment alleges that, Neppalli would then request a specific amount of money within a short timeframe, sometimes the same day, to facilitate closing the transaction. Neppalli would allegedly promise a return of the principal investment plus a profit within a few months and sometimes ask his victims not to discuss the transaction with other members of the community or reference a non-disclosure agreement.
“Our investigation shows Neppalli abused the trust and confidence placed in him by fellow Indian-American community members. He promised to invest their money in property. Instead, Neppalli used the funds to pay back other people he swindled as part of his scheme; now, multiple victims are left without their much-needed savings," said Michael C. Scherck, FBI Acting Special Agent-in-Charge. “Fraud can have an immediate and direct impact on people and communities, and the FBI remains determined to bring those who commit it to justice.”
Neppalli was indicted on 17 counts of Wire Fraud in violation of 18 U.S.C. § 1943 and 6 counts of Conducting Transactions in Criminally Derived Property in violation of 18 U.S.C. § 1957. Arraignment before United States District Judge Terrence W. Boyle is expected to occur later this year.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after United States Magistrate Judge Robert T. Numbers II presided over Neppalli’s Initial Appearance. The Federal Bureau of Investigation’s Triangle Fraud Taskforce is leading the investigation, and Assistant U.S. Attorney David G. Beraka is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-cr-00347-BO-BM.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Jury Convicts Armed Fentanyl Trafficker Caught in FayettevilleRead the Press Release
WILMINGTON, N.C. – A federal jury convicted Jarrell Raeshon Bordeaux, of Fayetteville, on charges of conspiracy to distribute 400 grams or more of fentanyl and 100 grams or more of heroin, distributing heroin and fentanyl, and possessing five firearms in furtherance of his drug trafficking crimes.
“This defendant was dealing dangerous illicit fentanyl, putting the community, and his own child, in danger, storing potentially deadly fentanyl in the same room where his son played,” said U.S. Attorney Easley. “Our office is partnering with law enforcement at every level to fight the fentanyl epidemic and put armed drug traffickers behind bars.”
According to court records and evidence presented at trial, Bordeaux sold ounces of fentanyl and heroin to a confidential informant on 10 separate occasions. During the drug deals, Bordeaux bragged about how successful he was at dealing drugs and how he operated to avoid being caught.
Law enforcement later executed search warrants at two locations that Bordeaux used to distribute drugs. At his house, officers found his seven-year-old son playing video games in the same room as seven ounces of fentanyl and heroin and two loaded handguns that were stolen. At another location, officers seized three more handguns along with tools and packaging Bordeaux used to distribute drugs.
The jury convicted Bordeaux of all 13 counts he was charged with. He now faces a mandatory minimum of 15 years imprisonment when sentenced in April 2023.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after Chief U.S. District Judge Richard E. Myers II accepted the verdict. The Fayetteville Police Department and Federal Bureau of Investigation investigated the case and Assistant U.S. Attorneys Tyler Lemons and Nick Hartigan are prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00428-M.
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EDNC Forfeits 280 Illegal Firearms and Prosecutes 278 Illegal Firearms Offenders in 2022Read the Press Release
RALEIGH, N.C. – Today, Michael Easley, United States Attorney for the Eastern District of North Carolina (EDNC), announced that over the course of 2022, EDNC’s litigative efforts have resulted in the forfeiture of at least 280 illegally owned, possessed, used, or obtained firearms. Firearms that are criminally forfeited are removed from the possession of a convicted criminal defendant and relinquished to the government for disposal, including potentially the return of the firearm to a rightful owner.
“Getting illegal guns out of the hands of the most dangerous felons helps make our communities safer,” said U.S. Attorney Michael Easley. “I am proud of the strong partnership between federal, state and local law enforcement to get these guns off the street, so they are not used to commit future crimes.”
Since the start of 2022, EDNC charged approximately 278 defendants with federal firearms offenses, including possessing a firearm in furtherance of drug trafficking, possession of a firearm as a convicted felon, and straw purchasing of a firearm. These prosecutions are a result of close cooperation between prosecutors and partners at federal and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and Homeland Security Investigations (HSI). EDNC also partners with the State Bureau of Investigation, North Carolina State Highway Patrol, North Carolina Alcohol Law Enforcement, and local police and sheriffs across the District.
EDNC’s efforts to seize and forfeit illegal firearms in 2022 was the result of multiple investigative and prosecutorial efforts, including the Project Safe Neighborhood (PSN) and the Violent Crime Action Plan (VCAP) initiative which are both collaborative efforts with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime, and the Organized Crime Drug Enforcement Task Forces (OCDETF), whose purpose is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
“ATF’s top priority is preventing firearms from falling into the wrong hands,” stated Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Bennie Mims. “That effort is strongly supported by our local and state law enforcement partners and our federal prosecutors. Through our collaborative efforts, we’re working hard to prevent illegal purchases, firearms trafficking, and firearms thefts. Keeping firearms out of the hands of prohibited individuals is key to building and maintaining safer communities.”
"Every day, the FBI works tirelessly with law enforcement partners across North Carolina to combat violent crime. Seizing guns from convicted felons is one step closer to making our communities safer," said Michael C. Scherck, the Acting Special Agent in Charge of Federal Bureau of Investigation (FBI) in Charlotte.
“DEA and its law enforcement partners want to send a stern warning that the distribution of dangerous drugs in association with gun violence presents a clear and present danger to the community,” said Robert J. Murphy, the Special Agent in Charge of the Drug Enforcement Administration (DEA) Atlanta Field Division. “This dangerous lifestyle has led many to face serious prison time as a consequence.”
“Finding and confiscating illegal weapons from dangerous criminals not only protects our communities, but it also protects the law enforcement community as we do our jobs,” said Ronnie Martinez, special agent in charge of Homeland Security Investigations in Charlotte that covers North and South Carolina. “We will continue to work with our law enforcement partners to protect our communities.”
Some of the major firearms-related cases prosecuted by EDNC in 2022 are as follows:
Jury Convicts Man for Federal Firearms Charge Following Shootout with Nash County Deputies on I-95: Ford, 35, of Florida, was convicted by a federal jury. He is a convicted felon who engaged in a shoot-out with Nash County deputies during a traffic stop. One of the deputies assisting with the traffic stop was hit multiple times while another deputy returned fire striking Ford and incapacitating him. Ford was sentenced to 10 years in prison and three years of supervised release. USA v. Jarred Ford, (No. 5:21-CR-105-BO)
Jury Convicts Wendell Man of Armed Robberies: Robinson, 43, of Wendell, was convicted by a federal jury following a string of robberies of grocery stores in eastern and central North Carolina. Robinson held employees at gun point after pretending to be a delivery driver so employees would let him in the backdoor. He is subject to the Armed Career Criminal enhancement and faces a maximum sentence of Life on the gun convictions. His sentencing is scheduled for the March 2023 term of court. USA v. Lionel Robinson, (No. 5:21-CR-17-BO)
Fayetteville Man Convicted of Kidnapping, Drug and Gun Offenses – Faces at Least 20 Years in Prison: Busbee, 38, of Fayetteville was convicted by a federal jury for being a violent pimp and drug dealer in Fayetteville who physically and sexually assaulted his victims, including three adult women and a two-year child, after kidnapping them. Busbee and others kidnapped the victims and held them for several hours after he believed the victims stole money from him. Busbee faces a mandatory minimum of 20 years in prison and up to life when he is sentenced on January 30, 2023. USA v. Yomere Busbee, (No. 5:20-CR-393-M)
Man Sentenced to 20 Years in Federal Prison for Shooting Rampage on I-95 in North Carolina: Dangerfield, 35, of South Carolina was sentenced to 20 years after a shooting rampage along the I-95 corridor. Franklin Dangerfield randomly fired at several vehicles across multiple counties while driving on I-95, striking at least one person and several vehicle. Dangerfield then led law enforcement on a high-speed chase reaching a top speed of 110 mph before crashing. USA v. Franklin Dangerfield, (No. 5:20-CR-439-M)
LaGrange Man Sentenced to 45 Years for Carjacking Resulting in Serious Injury: Dawson, 31, of LaGrange, violently assaulted and carjacked an 83-year-old man leaving him permanently disabled. Dawson was sentenced to 45 years in prison on February 4, 2022. US v. Anthony Dawson, (No. 5:20-CR-180-D)
U.S. v. Christopher Baker, (No. 5:21-CR-434-M-1): Baker, 49, of Zebulon, was convicted by a federal jury of charges including methamphetamine trafficking and firearm possession charges, including possession of machine guns. Baker was the third-ranking leader of the violent Pagan Motorcycle Gang in the country. He faces a 55-year mandatory minimum when he is sentenced on February 2, 2023.
Drug Trafficker Who Operated Fayetteville Daycare Sentenced to 40 Years in Federal Prison: Everett, 36, of Cumberland County was an armed, high-volume cocaine and marijuana trafficker in Fayetteville, North Carolina and was convicted by a jury for six felony drug trafficking and firearms related charges. He trafficked drugs and kept loaded, powerful firearms at the home daycare that he ran with his wife. After he was arrested, he engaged on a campaign of falsely claiming law enforcement planted the evidence against him, and he threatened witnesses. He was sentenced to 40 years’ imprisonment on August 25, 2022. U.S. v. Reshod Everett, (No. 5:20-CR-333-D-1)
California Man Responsible for Distributing Methamphetamine Receives 26 Years in Prison: Willie, 31, of California was sentenced to 312 months’ imprisonment for trafficking more than 100 kilograms of highly pure methamphetamine. Willie was a high-ranking leader of a large-scale methamphetamine trafficking organization that was associated with the Grape Street Crips gang. Willie received more than $1,000,000 in proceeds from the drug sales. U.S. v. Joseph Willie, (No. 4:21-CR-0021-FL-1)
Rocky Mount Gang Leader and Others Indicted on Drug and Fraud Charges: Foreman, 33, of Rocky Mount pled guilty to drug and fraud charges. Foreman was the leader of an armed heroin and fentanyl trafficking conspiracy operating in Nash and Edgecombe Counties. The drug trafficking organization was associated with the United Blood Nation street gang, and the group was involved in several gang related shootings. Foreman’s sentencing is scheduled for January 23, 2023. U.S. v. Tyrone Foreman, a/k/a “Ty Nitty” (No. 5:21-CR-289-D-1)
Violent Bloods Gang Drug Dealer and Weapons Trafficker Sentenced to 50 Years in Federal Prison: Rouse, 26, of Sampson County, was convicted at a federal trial was sentenced to 50 years’ imprisonment. Rouse was the violent leader of a large-scale drug trafficking organization who was responsible for large quantities of hundreds of kilograms of methamphetamine, as well as heroin, pills, cocaine, and cocaine base (crack). Rouse also engaged in threats and violence in furtherance of the drug trafficking organization. U.S. v. Jimmy Rouse, (No. 7:19-CR-194-D-1)
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for the case number.
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Greenville, NC Man Convicted of Assault on Federal Agents Faces up to Thirty Years in PrisonRead the Press Release
ELIZABETH CITY, N.C. – A federal jury convicted Ikeviaun Quamonn Johnson, 22, of Greenville, yesterday on firearm charges and for assaulting two federal agents with a deadly weapon.
“We stand with the brave men and women of law enforcement, and their families, who make great sacrifices every day to keep our communities safe,” said U.S. Attorney Michael Easley. “We will continue to prioritize prosecuting violent offenders, especially those who threaten the lives of law enforcement. This defendant fired eight rounds at federal officers and is now facing up to three decades in federal prison.”
According to court records and evidence presented at trial, on October 16, 2020 an FBI Special Agent and Greenville Police Officer deputized and sworn as a federal Task Force Officer were conducting surveillance on suspected high-ranking gang members in a residential area of Greenville. An unidentified person outside of the trailer under surveillance held up his cell phone, likely taking a video of the agents. As the agents switched locations after having been detected, a black Ford Explorer began following them aggressively. The defendant fired eight rounds from his Glock 19 at the agents from the rear left window of the Explorer. According to witness testimony, the defendant thought that the agents’ unmarked car was that of a rival gang member, which led him to open fire in broad daylight without knowing for sure who was in the car.
Pitt County Sheriff’s Office detectives recovered eight shell casings, a distinctive Glock 19 with an extended magazine, and Johnson’s cell phone which contained photos of Johnson posing with the same distinctive firearm. Eyewitnesses also identified Johnson as the shooter.
The defendant was convicted of possession of a firearm in furtherance of a federal crime of violence which carries a minimum 10-year prison sentence; and assault on federal officers with a deadly weapon for which the defendant faces up to an additional 20 years in prison. Johnson is scheduled to be sentenced in April.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle accepted the verdict. The Pitt County Sheriff’s Office, the Greenville Police Department and the FBI are investigating the case. Assistant U.S. Attorneys Bradford Knott and David G. Beraka are prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:21-cr-18-BO-1.
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U.S. Attorney Announces Human-Trafficking Task Force and Multi-Prong Effort to Combat Trafficking in Eastern North CarolinaRead the Press Release
RALEIGH, N.C. – U.S. Attorney Michael Easley is announcing efforts to combat human trafficking including the launch of a dedicated task force, and increased community outreach and education to raise awareness. As part of the annual observation of January as Human Trafficking Awareness Month, Easley also highlighted several successful human trafficking prosecutions led by his office.
“It is easy to dismiss human trafficking as a problem that happens only in other parts of the country or the world, but sadly it is something that is happening right here in our communities in Eastern North Carolina,” said U.S. Attorney Michael Easley. “Our office is advancing the fight to end human trafficking in our communities. Working together with our law enforcement partners at every level, we seek to identify, locate, and recover the victims and prosecute individuals and organizations exploiting the most vulnerable members of our community. In addition to using our investigative and prosecutorial tools, we are ensuring that our law enforcement partners are armed with the tools and expertise to investigate these cases and hosting events to promote education and awareness.”
New Human Trafficking Task Force
The office is announcing the creation of a dedicated human trafficking task force, initially focused on the Raleigh-Cary area, that is meeting regularly to share intelligence and investigative leads, receive specialized training, develop investigative tools and expertise for law enforcement agencies. The task force includes members of three prosecutorial offices and 11 law enforcement agencies, including the Wake and Johnston County District Attorney’s offices, Homeland Security Investigations (HSI), the Federal Bureau of Investigation (FBI), U.S. Marshal Service, Internal Revenue Service (IRS), N.C. State Bureau of Investigation (NCSBI), N.C. State Highway Patrol (NCSHP), the Wake County Sheriff’s Office, St. Augustine’s University and the Raleigh, Apex and Cary Police Departments. The goal is to use lessons learned from this task force to develop regional task forces in other parts of the district in the coming year.
“The U.S. Marshals Service has always worked closely with the National Center for Missing and Exploited Children (NCMEC) and our federal, state, and local counterparts to recover missing and endangered children," stated U.S. Marshal Glenn McNeill. "We are excited to serve this vital mission and build upon these partnerships as the task force grows in the never-ending pursuit of justice for victims of human trafficking.”
“We are appreciative for this opportunity to further our agency’s efforts in combating human trafficking throughout our state and beyond,” said Colonel Freddy L. Johnson Jr., commander of the North Carolina State Highway Patrol. “The work to be done by this collaborative group of passionate law enforcement professionals will undoubtedly help in identifying victims, removing them from harm’s way and in building strong cases to fully prosecute the offenders of these callous acts.”
“By bringing together the experience and expertise of all cooperating law enforcement agencies, we greatly enhance our ability to combat human trafficking and bring those perpetrating these heinous crimes to justice,” said Ronnie Martinez, Special Agent in Charge of HSI Charlotte that covers North and South Carolina.
“Human traffickers prey on the vulnerable members of our community, and we are proud to join our Federal, state, and local partners on the human trafficking task force to combat this prolific crime,” said Raleigh Police Chief Estella Patterson. “The Raleigh Police Department will work steadfastly with our partners to educate our community and raise awareness of the impacts of human trafficking. Additionally, we will work closely with the court system to ensure that human traffickers are prosecuted to the fullest extent of the law and that the victims are given the resources and support for healing. We will not be a community that allows individuals to abuse other members of society.
NCSBI Director Robert Schurmeier stated, “The creation of a task force specifically dedicated to fighting human trafficking is a welcomed development for North Carolina. Having this resource in place will allow us to better serve the citizens of NC and the many victims of human trafficking. We understand the difficulties and many challenges presented by the complexities of human trafficking investigations. However, together with our criminal justice partners, we believe we can make a profound impact by saving lives and holding to account those who traffic their fellow human beings. The SBI is eager for the opportunity to combat human trafficking in all forms, and is honored to be part of a task force comprised of so many talented members.”
Education, Awareness and Community Outreach
In an effort to raise awareness and educate those involved in the fight against human trafficking, staff from the U.S. Attorney’s Office participated in nearly half a dozen community engagement events, with more planned for 2023. In addition to the direct outreach efforts, the office has also worked to strengthen partnerships with non-governmental organizations and other service providers to ensure that victims of human trafficking are getting the help that they need after the trauma they have experienced.
Prosecution of Human Traffickers
Finally, the office is highlighting several human trafficking prosecutions from 2022 that have helped to put traffickers and members of their organizations behind bars.
USA v. Kevin Rudolph and Marcus Gambrell (No. 5:19-CR-336-FL)
Marcus Antwan Gambrell, 30, of Raleigh, was sentenced to 210 months in prison, on December 21, 2021, for manufacturing child pornography. Gambrell and co-defendant Kevin Rudolph were charged in a four-count superseding indictment. The indictment charged both men with sex trafficking of a minor and using the internet to promote prostitution, Gambrell with manufacturing child pornography, and Rudolph with possession of a firearm by a felon. Gambrell pled guilty to manufacturing child pornography. Rudolph pled guilty to sex trafficking of a minor and aiding and abetting, and sentencing is scheduled for later this month.
USA v. Jenkins, et al. (No. 7:22-CR-00083)
In July 2022, the government indicted a significant human trafficking investigation, charging 20 human trafficking and drug related offenses including, a sex trafficking conspiracy, sex trafficking of multiple victims by force, fraud or coercion, sex trafficking of a minor, multiple counts related to transportation of victims across state lines for purposes of engaging in commercial sex, a drug conspiracy, and drug related offenses. All defendants are presumed innocent until proven guilty.
USA v. Yomere Juan Busbee (No. 5:20-CR-00393)
In September 2022, a federal jury in Wilmington found the defendant – a violent pimp and drug dealer from Fayetteville – guilty on six counts of kidnapping of four victims, including a minor, drug, and gun offenses stemming from an investigation into the defendant’s sex trafficking offenses. Two co-defendants in the case pled guilty. Busbee is currently set to be sentenced at the end of this month, facing at least 20 years in prison.
USA v. Xiang Yue Jin (No. 5:21-CR-00266) and USA v. Ok Hwa Lee et. al (No. 7:21-CR-00079)
In September 2022, Jin was sentenced to 15 months in prison plus financial restitution for bribery charges intended to protect her illegal “massage parlor” business from law enforcement scrutiny. Five other defendants were indicted in a separate case stemming from the same investigation into illicit massage parlors where sexual services were provided. The last of those five defendants pled guilty in December 2022 and all five are scheduled to be sentenced in 2023.
USA v. Marvarlus Cortel Snead (EDNC No. 7:19-CR-00151; 4th Cir. No. 21-4333)
In December 2022, the Fourth Circuit Court of Appeals affirmed the conviction and sentence of Marvarlus Snead, rejecting all of defendant’s arguments on appeal. Snead was previously convicted at trial and sentenced to 35 years for sex trafficking of a minor.
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If you or anyone you know needs help or has information to provide in regard to a potential human trafficking situation, please contact law enforcement by calling 911 if the situation appears unsafe, or contact the National Human Trafficking Hotline:
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- https://humantraffickinghotline.org/
- 1-888-373-7888
- *Text 233733
- Email: [email protected]
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Raleigh Man Sentenced to 14 Years in Prison After a Domestic Dispute Ended in Shots Fired at his GirlfriendRead the Press Release
RALEIGH, N.C. – Steven Antonio Peterson, 32, of Raleigh, was sentenced yesterday to 168 months in prison for two counts of being a felon in possession of a firearm. Peterson pled guilty to the charges.
According to court documents and other information presented in court, Peterson possessed a firearm on August 29, 2021 when he got into an argument with his girlfriend after he broke into her house through the window, hit her in the face with a pistol, and then fired a round at her as she tried to walk away. The round nearly hit her. Peterson then threatened the victim. On September 1, 2021, Raleigh Police arrested Peterson who was carrying a 9-millimeter handgun at the time of arrest. Ballistics determined that the same firearm was used in the shooting on August 29th. Peterson had previously been convicted of a felony and is not legally permitted to possess a firearm or ammunition.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case and Assistant U.S. Attorney Philip Aubart prosecuted the case.
The conviction is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-00145-BO-001.
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Holly Springs Man Sentenced to 14 Years in Prison on Child Pornography ChargesRead the Press Release
NEW BERN, N.C. – Wayne Kenneth Dare, 41, of Holly Springs was sentenced yesterday to 14 years in prison followed by 10 years supervised release for receipt of child pornography. Dare pled guilty to the offense.
According to court documents and other information presented in court, detectives with the Cary Police Department conducted a proactive investigation on a peer-to-peer sharing network trying to identify individuals trading and collecting child sexual abuse material. Detectives were able to download child pornography from the computer with an IP address associated with an address in Cary.
The detectives obtained a search warrant for the home associated with the IP address used to distribute child pornography. Dare lived at this address. When officers and agents arrived at the home to execute the search warrant, Dare was present. He agreed to speak to law enforcement and confessed to having received child pornography and continuing to possess it. Dare told law enforcement he had been viewing child pornography since 2009.
A forensic analysis was performed on his digital devices that were seized pursuant to the search warrant. Agents found 1,236 images and 488 videos of child sexual abuse material. Some of the images depicted toddlers and sadistic and masochistic conduct. At least two of the videos Dare possessed were over an hour in length.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. U.S. District Judge Louise W. Flanagan presided over the sentencing. Homeland Security Investigation, the Cary and Holly Springs Police Departments, and the United States Marshals Service investigated the case and Assistant U.S. Attorneys Charity Wilson and Jacob Pugh prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-430.
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Man Sentenced to Decade in Federal Prison Following Shootout with Nash County Deputies on I-95Read the Press Release
RALEIGH, N.C. – Jarred Javon Ford was sentenced today to 10 years imprisonment followed by 3 years of supervised release for possession of a firearm by a felon after being involved in a shootout with Nash County Deputies on I-95. This is the statutory maximum sentence available for this offense. Ford also faces attempted murder charges in state court.
“This case was a violent shooting of a law enforcement officer that, thankfully, did not result in a loss of life,” stated U.S. Attorney Michel Easley. “Due to the quick reaction of the deputy who was able to return fire, this felon was apprehended. My office stands by law enforcement, and we will continue to vigorously prosecute those who attack the men and women to put their lives on the line to protect us.”
“During a traffic stop in Nash County, Ford fired over a dozen rounds at Deputies Shelby Smith and William Toney,” said Nash County Sheriff Keith Stone. “With the training the Deputies had received, they were able to bring Ford into custody after a gun battle which left Deputy Toney shot four times and bleeding badly. Deputy Smith and Deputy Toney are true heroes. As noted by Franklin D. Roosevelt ‘Courage is not the absence of fear, but rather the assessment that something else is more important than fear.’ Men and women of law enforcement don a badge each and every day willing to lay down their life. I am grateful for the ongoing partnership with the U.S. Attorney’s office, working together with law enforcement at every level, to protect our communities from violence. We remain vigilant and dedicated to our duty to protect and serve.”
According to court documents and other information presented in court, Ford was speeding on Interstate 95 and Nash County deputies conducted a traffic stop based on the speeding violation. One of the deputies noticed a strong odor of marijuana coming from the vehicle as she interacted with Ford and asked Ford step out of the vehicle. The second deputy arrived on the scene as back up and stood by Ford as the first deputy explained to Ford, she had smelled marijuana. Ford indicated there was marijuana in the car. She explained to Ford that she was going to search him, and his car, and Ford began to struggle with the deputies. Ford pulled a gun out of his pocket and discharged it multiple times, striking one of the deputies in both arms and his hip. The other deputy was able to return fire and struck Ford multiple times.
Ford testified in his own defense at his trial and admitted to possessing the firearm and to shooting the Nash County Deputy. Ford said he discharged his firearm at least 4-5 times until his gun jammed.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. U.S. District Judge Terrence W. Boyle presided over the sentencing. Nash County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorneys Aakash Singh and Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-105.
Violent Armed Drug Dealer from Fayetteville Sentenced to over 7 Years in PrisonRead the Press Release
NEW BERN, N.C. – Kendale Tyrone Strange, 45, of Cumberland County, was sentenced to 86 months in prison today for possessing a firearm as a felon. The gun that Strange illegally possessed was previously used in a violent assault.
On February 27, 2020, the Fayetteville Police Department received a report of a shooting at a McDonald’s parking lot. Upon further investigation, Strange was identified striking another person in the head with a handgun. The handgun went off and the resulting spent shell casing was collected as evidence.
A parallel drug investigation showed consistent drug trafficking activity at Strange’s house on School Street in Fayetteville. On March 18, 2020, a search warrant was executed. During the search warrant, a handgun was recovered from the trunk of Strange’s car. Ballistic analysis showed that the handgun in the trunk of the car was the same handgun used during the assault in the McDonald’s parking lot.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Fayetteville Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms & Explosives investigated the case and Assistant U.S. Attorneys Tyler Lemons and Nicholas Hartigan prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00217-FL-4.