Eastern District of North Carolina
Press releases recorded for this federal judicial district.
U.S. Attorney’s Office Collects $16,323,043.41 in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
RALEIGH, N.C. – U.S. Attorney Michael Easley announced today that the Eastern District of North Carolina collected $16,323,043.41 in criminal and civil actions in Fiscal Year 2022. Of this amount, $12,196,251.65 was collected in criminal actions and $4,126,791.76 was collected in civil actions.
“We are committed to using every tool available to aggressively collect restitution for victims, criminal fines, and recover taxpayer dollars lost to fraud and owed to government agencies,” said Mr. Easley. “We are proud of the men and women in our office who have worked so hard to ensure justice through their collection efforts. They are to be congratulated for their tremendously successful efforts.”
Some significant collections included: In August 2022, the Eastern District of North Carolina collected over $360,000 from Yousef Kaid. Although not the District’s largest monthly collection total, it was the result of significant enforcement action, netted a substantial sum for the victims of Kaid’s crimes, and epitomizes the office’s dogged pursuit of criminal monetary penalties. https://www.justice.gov/usao-ednc/pr/nine-arrested-conspiracy-traffic-contraband-cigarettes
In January and June 2022, the Eastern District of North Carolina collected a total of $1.5 million from Margaret Gibson. Those payments were the result of a settlement agreement resolving False Claims Act allegations against her. https://www.justice.gov/usao-ednc/pr/north-carolina-durable-medical-equipment-corporation-sentenced-10-million-healthcare
Additionally, the Eastern District of North Carolina worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $25,900.61 in cases pursued jointly by these offices. Of this amount, $25,300.61 was collected in criminal actions and $600.00 was collected in civil actions.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the Eastern District of North Carolina, working with partner agencies and divisions, collected $16,891,175.00 in asset forfeiture actions in FY 2022. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
More Than 200 Officers Trained in De-Escalation, Use of Force & Community Engagement Tactics in 2022Read the Press Release
RALEIGH, N.C. – Between May and October, the U.S. Attorney’s Office and the N.C. Justice Academy have provided day-long De-Escalation, Use of Force and Community Engagement Training to more than 200 federal, state, and local law enforcement officers in the Eastern District of North Carolina. Approximately 75 law enforcement agencies participated in the training.
“This training, which is part of our Civil Rights Initiative, gives law enforcement the tools, tactics, and best practices to defuse and de-escalate situations by mitigating the need for or use of force. De-escalation techniques reduce injuries and preserve the safety of law enforcement officers and the public,” said U.S. Attorney Michael Easley. “In addition to providing training for dealing with ‘in the moment’ situations, the agenda also focused on the benefits of ongoing community engagement by law enforcement to build long-term, sustainable community trust. Taking the time to listen, learn and gain perspective creates a basis for developing collaborative solutions that make our communities safer.”
Sessions were offered in multiple locations to maximize the opportunity for participation. Training sessions were offered in Raleigh, Greenville, Castle Hayne, Ahoskie, and Fayetteville. The agenda included sessions on addressing use of force incidents, a review of civil rights laws and hate crimes, and best practices in community policing. The community engagement section was led by N.C. Department of Public Safety Secretary Eddie Buffaloe, who previously served as the Chief of Police in Elizabeth City, N.C.
The training is part of the U.S. Attorney’s Civil Rights Initiative which includes community outreach and engagement designed to increase awareness of existing civil rights protections and how to spot and avoid civil rights violations.
Elizabeth City Gang Member Sentenced to Nearly a Decade for Distributing CocaineRead the Press Release
RALEIGH, N.C. – An Elizabeth City man was sentenced yesterday to 114 months in prison for distributing cocaine. On September 19, 2022, Quayshaun Laquan Banks, pled guilty the charges.
According to court documents and other information presented in court, Banks, 31, who is a validated member of the United Bloods Nation street gang, was investigated by the Albemarle Drug Task Force after information indicated that Banks was distributing controlled substances in Northeastern North Carolina. Utilizing a confidential informant, the Task Force conducted a series of controlled purchases of cocaine from Banks. Subsequent investigation revealed that Banks had distributed almost two kilograms of cocaine in and around Elizabeth City from October 2017 through April 2018, and then again from November 2019 through March 2020. Banks was incarcerated for an unrelated conviction during the intervening time. Banks is a convicted felon, having convictions for interfering with an electronic monitoring device, possession of a firearm by a felon, possession of marijuana, and breaking and entering. He also has numerous misdemeanor convictions.
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), North Carolina State Bureau of Investigation (SBI), the Elizabeth City Police Department, the Pasquotank County Sheriff’s Office, and the Dare County Sheriff’s Office investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (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.
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. 2:20-CR-00045-D.
Robeson County Woman Stopped with Fentanyl in Child Car Seat Receives 25 Year SentenceRead the Press Release
RALEIGH, N.C. – A Robeson County woman was sentenced yesterday to 300 months in prison for conspiring to distribute four hundred grams or more of fentanyl and for possessing firearms in furtherance of a drug trafficking crime. On April 7, 2022, Jania Delicia Leggett, 28, pled guilty to the charges.
“This year alone, the DEA reports that it has seized enough deadly doses of fentanyl to kill every American,” said U.S. Attorney Michael Easley. “This defendant was not only trafficking a deadly drug but doing so with children and assault weapons in close proximity – even allowing a small child to handle fentanyl.”
According to court documents and other information presented in court, Leggett ran a house used to distribute fentanyl in Lumberton, North Carolina from April through September of 2020. Witnesses reported to law enforcement that they had also seen AR-15 style rifles and small children in the house that Leggett used as a hub for her fentanyl sales. The investigation revealed that Leggett was responsible for distributing over 3.5 kilograms of fentanyl during that six-month period.
In October of 2020, investigators learned that Leggett and her significant other, Clarence Graham, had moved their drug sales to a Lumberton-area hotel. Lumberton Police Department detectives performed a traffic stop on Leggett and Graham as they left the hotel on October 13, 2020. When detectives approached Leggett and Graham’s vehicle, they observed that Leggett had a .40 caliber handgun in her lap and that there was a small child in the backseat holding a bag of fentanyl. Detectives then searched the vehicle and a storage unit in Graham’s name and found a total of 334.98 grams of fentanyl, $46,647 in cash, an additional handgun in Leggett’s purse, and a variety of items used to package drugs for sale.
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 Lumberton Police Department and 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-95-D-2.
Raleigh Man Convicted at Trial After Seeking Child Pornography in Online Chat RoomsRead the Press Release
RALEIGH, N.C. – A federal jury today convicted William Robert Jeffery, 61, of Wake County of accessing the internet with intent to view child pornography.
According to court records and evidence presented at trial, in spring of 2020, the Raleigh Police Department received reports from the National Center for Missing and Exploited Children (NCMEC) regarding illegal internet activity at Jeffery’s Raleigh home. NCMEC reported that on five occasions from October 2019 to January 2020, a user at that address had submitted images of Child Sexual Abuse Material (CSAM, often referred to as child pornography) into the Microsoft Bing reverse image search, seeking similar images.
On March 17, 2020, FBI and the Raleigh Police Department executed a search warrant at Jeffery’s home. He admitted to using a pornographic chat website and viewing clothed images of children, but he denied possessing CSAM material. A forensic examination of his laptop showed extensive activity on the chat website and was able to recover multiple CSAM images that had been deleted from the internet history. The forensic analyst also recovered deleted images of CSAM material on an older computer that Jeffery has used in 2006-2009, along with earlier activity on the same chat website.
Jeffery has a prior conviction in federal court for traveling in interstate commerce for the purpose of engaging in a sex act with a minor in 2020, and in 2021, he was convicted in Dare County Superior Court of two counts of indecent liberties with a minor. Jeffery faces a maximum penalty of 240 months in prison when sentenced March 2023.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict. The Raleigh Police Department and Federal Bureau of Investigation (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.2:20-CR-0464-D).
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Raleigh-Area Physician Agrees to Pay $385,000.00 to Resolve Allegedly Fraudulent Medicare and Medicaid ClaimsRead the Press Release
RALEIGH, N.C. –United States Attorney Michael Easley announced today that Haritha Nadendla, M.D., and Triangle Women’s Center, P.C., (hereinafter referred to as “Triangle”), an OB/GYN practice that Dr. Nadendla owns and operates in the Raleigh, North Carolina area, have agreed to pay $385,000 to settle civil False Claims Act liability concerning allegations that Triangle submitted false claims to the Medicaid program for certain patient visits.
The Government contends that it has certain civil claims against Triangle arising from Triangle’s submission of claims to the North Carolina Medicaid Program for medical services from January 1, 2018, through December 31, 2021, including claims for CPT 99215 – Evaluation & Management for an established patient in an office or outpatient location, which the Government contends were not supported by the medical record and were not medically necessary. The Government contends that Triangle’s submission of such claims for payment to the North Carolina Medicaid Program violates the Federal and North Carolina False Claims Acts.
“This civil fraud case demonstrates our firm commitment to protect taxpayer money and to guard the integrity of federal programs,” said U.S. Attorney Michael Easley. “Our office will zealously pursue those who misuse or abuse government funds.”
“My office’s Medicaid Investigations Division is committed to holding accountable health care providers who waste taxpayer resources,” said North Carolina Attorney General Josh Stein. “I thank U.S. Attorney Easley and his team for their continued partnership to protect Medicaid funds for North Carolinians.”
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 Michael M. Berger, who also serves as a Special Assistant United States Attorney, represented the United States and the State of North Carolina.
The allegations were originally made in a lawsuit filed under the whistleblower provisions of both the Federal and North Carolina False Claims Act by Hannah Turnbull. The respective False Claims Acts permit private parties to sue for false claims on behalf of the United States and the State of North Carolina, as well as potentially sharing in any recovery. As for the recovery, the False Claims Acts allow the United States and the State of North Carolina to recover triple the money falsely obtained, plus civil penalties for each false claim submitted.
The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
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Goldsboro Methamphetamine Trafficker Sentenced to 106 Months in PrisonRead the Press Release
WILMINGTON, N.C. – A Goldsboro, North Carolina man was sentenced today to 106 months in prison for Conspiracy to Possess with Intent to Distribute 500 grams or more of a mixture and substance containing a detectable amount of Methamphetamine and Possession with Intent to Distribute 50 grams or more of a mixture and substance containing a detectable amount of Methamphetamine. Brandon Phillips pled guilty to the charges on May 17, 2022.
According to court documents and information presented at the sentencing hearing, On August 5, 2020, a deputy with the Wake County Sheriff’s Office in Raleigh, North Carolina stopped a vehicle in which Mr. Phillips was a passenger. While conducting the traffic stop, the deputy observed Mr. Phillips moving around in the car as if trying to hide something. After walking around the vehicle, a K-9 alerted to the presence of narcotics in the vehicle. A search by law enforcement ultimately led to the seizure of approximately 495.3 grams of crystal methamphetamine, $3,033 in U.S. currency, and drug paraphernalia.
Two related defendants have previously been sentenced:
- Jason Michael Hyland (7:20-CR-130-M): sentenced to 134 months’ imprisonment.
- Ashley Carol Shackelford (7:20-CR-130-M): sentenced to 90 months’ imprisonment.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement. The Drug Enforcement Administration, the Duplin County Sheriff’s Office, and the Wake County Sheriff’s Office investigated the case and Assistant U.S. Attorney Jennifer C. Nucci prosecuted the case.
This prosecution 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.
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 number 5:21-CR-21-M.
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Former Spring Lake Public Official Sentenced to Four Years in Prison for EmbezzlementRead the Press Release
ELIZABETH CITY, N.C. – Gay Cameron Tucker, 64, was sentenced today to two consecutive 24-month sentences in prison for embezzling more than $500,000 from the Town of Spring Lake. Tucker is the former finance director and account technician for the Town. On September 21, 2022, she pleaded guilty to one count of Embezzlement from a Local Government Receiving Federal Funds, and one count of Aggravated Identity Theft.
“Public corruption at any level is a crime that affects all of us and undermines our public institutions,” said U.S. Attorney Michael Easley. “This defendant abused her position of trust by using public funds intended for her local community to pay her own personal expenses. Our office will continue to partner with law enforcement to investigate and prosecute allegations of public corruption.”
Between 2016 and 2021, Tucker wrote checks from the Town’s bank accounts for her personal use, forging the signatures of other town officials, including the mayor and town manager. These forged checks were made payable to herself, used to cover her personal expenses, and deposited into bank accounts she controlled. By abusing her position of trust, Tucker stole $567,070 from the Town over this five-year period.
During the course of the government’s investigation into Tucker, the Town of Spring Lake hired a financial consultant to assist with an audit of the Town’s finances for 2019 and 2020 and also discovered financial irregulates. Tucker was removed from her position as Finance Director in March 2021.
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 investigated the case and Assistant U.S. Attorneys William M. Gilmore and Karen Haughton prosecuted the case.
Related court documents and information are located 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-00118.
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Triangle CEO Pleads Guilty to Filing False Tax ReturnsRead the Press Release
RALEIGH, N.C. – Raleigh business owner Alton Perkins, pled guilty yesterday for failing to account for approximately three-million dollars diverted from his companies for his own personal use between 2015 and 2018.
“Hardworking, taxpaying Americans deserve to know that the government will hold accountable tax cheats who dodge paying their fair share,” said U.S. Attorney Michael Easley. “This CEO tried to dodge paying his due by diverting company money to pay for vacations, expensive jewelry, and private school tuition. Yesterday he paid full price with a guilty plea.”
“People who create elaborate schemes that have no purpose other than to mislead others and defraud the IRS run the very high risk of prosecution" said Donald “Trey” Eakins, Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge of the Charlotte Field Office.
According to evidence summarized in court, Perkins moved large amounts of money from his business accounts into his personal bank accounts. These funds were then used for personal expenditures. None of the approximately three million spent by Perkins on these personal items was accounted for in his taxes filed with the IRS.
Perkins is the chairman and CEO of AmericaTowne, a company, according to its website, focused on increasing exports of American products to China. AmericaTowne, which was funded by investor dollars, included a plan to build an American-style community in China that would include hotels, small businesses, and a theme park. Perkins is currently involved in a civil lawsuit with the U.S. Securities and Exchange Commission (Case No. 5:19-CV-00243-FL) over the unregistered private placement offerings and the sale of securities for AmericaTowne and other business entities controlled by Perkins.
In court, Perkins pled guilty to making and subscribing to false tax returns for his failure to account for his personal expenditures on his 2016 personal income tax return. According to evidence presented in court, for tax year 2016, Perkins stated that his total income was $21,933. However, banking records show that Perkins spent $1,208,394 that year on personal items including, a golf cart, a family trip to Hawaii, private high school tuition, and a Rolex – all with funds taken from Perkin’s corporate bank accounts.
Perkins pled guilty to one felony charge of Making and Subscribing a False Tax Return Under Penalty of Perjury, in violation of 26 U.S.C. § 7206(1). He faces up to three years in prison. According to the plea agreement, Perkins will make restitution in the amount of $520,344 to the IRS for taxes owed from 2015-2018.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after Magistrate Judge Robert B. Jones Jr. accepted the plea. The Internal Revenue Service Criminal Investigation investigated the case and Assistant U.S. Attorneys William M. Gilmore and Karen Haughton prosecuted the case.
Related court documents and information are located 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-00265-FL.
Phoenix, Arizona Man Sentenced to 24 Years for Drug Trafficking in Eastern North CarolinaRead the Press Release
RALEIGH, N.C. – A Phoenix, Arizona man was sentenced yesterday to 293 months in prison for trafficking fentanyl and methamphetamine. On July 27, 2022, Eric O’Neal, 54, pled guilty to conspiracy to distribute four (400) grams or more of a mixture and substance containing a detectable amount of fentanyl and fifty (50) grams or more of methamphetamine and possession with the intent to distribute fifty (50) grams or more of methamphetamine and forty (40) grams or more of a mixture and substance containing a detectable amount of fentanyl, aiding and abetting.
“This sentence should send a strong message to kilogram-level narcotics traffickers pushing deadly fentanyl and meth into Eastern North Carolina,” said U.S. Attorney Michael Easley. “No matter where you are, we will find you. We will prosecute you. And you will do time in federal prison.”
According to court documents and other information presented in court O’Neal distributed a total of thirty (30) kilograms of fentanyl and methamphetamine in the Eastern District of North Carolina from July 2020 through January 28, 2022. O’Neal would utilize the mail system to distribute fentanyl and methamphetamine to customers in the Raleigh, North Carolina area. O’Neal was previously prosecuted federally for Distribution and Manufacture of Controlled Substances in Salt Lake City, Utah and after serving a ten-year sentence for this conviction, got out of federal prison and continued distributing and selling narcotics until his arrest in this case in New Jersey on January 28, 2022 of this year.
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 Drug Enforcement Administration 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. 5:22-cr-00045-BO-RJ.
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New Bern Blood Gang Member Sentenced to 17 ½ Years in Federal Prison for Drug Trafficking and Firearm ChargesRead the Press Release
RALEIGH, N.C. – Daquan Doral Carter, 27, of New Bern, North Carolina was sentenced today to 210 months in prison for drug trafficking and firearm charges. Carter is a validated member of the United Blood Nation street gang. On May 23. 2022, Carter pleaded guilty to Conspiracy to Distribute and Possess with the Intent to Distribute 50 Grams or More of a Mixture and Substance Containing Methamphetamine, Distribution of a Quantity of Methamphetamine, and Possession of a Firearm by a Convicted Felon.
“We are taking on violent gang members and narcotics traffickers in every corner of Eastern North Carolina,” said U.S. Attorney Michael Easley. “Carter wrecked his car in a dangerous high-speed chase through downtown New Bern, exceeding 100 miles per hour. Now he will hitch a ride to federal prison. Today’s sentence is a warning to violent gang members in the Eastern District of North Carolina. The Feds are here.”
According to court documents and other information presented in court, Carter was responsible for trafficking just under 6 kilograms of methamphetamine in and around New Bern between January 2020 and July 2021. On November 18, 2020, the New Bern Police Department seized marijuana and $15,000 in cash from Carter during a routine traffic stop. Between April and May 2021, New Bern Police officers seized marijuana and an additional $10,000 in cash from Carter. On June 23, 2021, Carter sold over an ounce of crystal methamphetamine to a confidential source. Carter was captured on an audio-visual recording conducting the transaction. On July 1, 2021, New Bern Police officers arrested Carter after finding a stolen firearm in his possession during a traffic stop. The firearm also exhibited an extended magazine. Again, on July 7, 2021, Carter sold over half an ounce of crystal methamphetamine to a confidential source. Carter was captured on an audio-visual recording conducting the transaction. On July 20, 2021, Craven County Sheriffs Deputies attempted to serve Carter with outstanding arrest warrants related to a gang-related shooting, when he fled in his vehicle and took law enforcement on a high-speed chase throughout downtown New Bern. Carter was driving in speeds of excess of 100 miles per hour before crashing his vehicle. Deputies then arrested Carter and executed a search warrant at his residence where they recovered a quantity of crystal methamphetamine and cocaine.
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 New Bern Police Department, Craven County Sheriff’s Office, and the Federal Bureau of Investigation investigated the case and Assistant U.S. Attorney Aakash Singh 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. 4:21-CR-54-BO.
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Fugitive Sex Offender Found in Fayetteville Sentenced for Failing to RegisterRead the Press Release
NEW BERN, N.C. – A Rhode Island man was sentenced today to 37 months in prison for failing to register as a sex offender.
According to court documents, Jerry Noel Diaz, 25, was charged with one count of Failing to Register as a Sex Offender. Diaz pled guilty to the charge on June 1, 2022.
In 2014, Diaz was convicted of felony First Degree Child Molestation after forcibly raping an 11-year-old victim in Rhode Island. As part of the child molestation conviction, Diaz received a lifetime registration requirement under the Sex Offender Registration and Notification Act (SORNA). In 2020, Diaz failed to register in Rhode Island, was arrested, released on bond, and instructed to report to probation. Diaz did not report to probation, instead choosing to flee, eventually making his way to North Carolina. In April 2021, a lead was sent to the Carolinas Regional Task Force and, on April 15, 2021, after confirming that he had failed to register in North Carolina, Diaz was apprehended while hiding in the closet of a residence in Fayetteville. After being arrested, Diaz admitted to having been in the Fayetteville area for more than 5 months and stated that he had been working with a youth group at a local church.
Michael Easley, Jr. U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The U.S. Marshals Service, Eastern District of North Carolina, Carolinas Regional Fugitive Task Force, Cumberland County Sheriff’s Office, U.S. Marshals Service, District of Rhode Island and the Rhode Island State Police investigated the case. Assistant U.S. Attorney Bryan 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-00395-FL.
CEO of Raleigh Healthcare Company Sentenced to 80 Months in Prison for Multi-Million Dollar Healthcare FraudRead the Press Release
RALEIGH, N.C. – A Raleigh CEO will serve 80 months in prison for Healthcare Fraud.
Tanya Grant, 51, was sentenced today for a health care fraud scheme carried out between 2017 and 2021 through two companies she controlled – Carolina Rehab Products Inc. (CRP), also known as Atlantic Brace, in Raleigh; and Blue File DME, LLC (Blue File), in Dunn. These companies were licensed to supply durable medical equipment, such as neck and back braces, to Medicare beneficiaries. Grant pled guilty to the charge on July 6, 2022.
“This defendant was motivated by greed, scheming to steal millions in taxpayer dollars meant for senior citizens and the needy,” said U.S. Attorney Michael Easley. “She used her fraud to fuel her lavish lifestyle, including a vacation home, luxury cars, jewelry, and a boat. Health care fraud like this costs taxpayers billions of dollars each year. We will use every avenue to root it out and bring offenders to justice.”
To carry out the scheme and enrich herself, the investigation showed that Grant purchased lists of Medicare patient names from companies overseas. She then billed Medicare for purportedly supplying these patients with durable medical equipment. In many cases, Medicare was billed even though no equipment was shipped. Medicare was also billed by Grant’s companies for supplying medical equipment to 422 deceased individuals. When audited by Medicare contractors, the evidence showed that Grant forged physician orders if no such order existed in her files to support her billings.
In total, Grant caused CRP and Blue File to bill Medicare for more than $50 Million in durable medical equipment between 2014 and 2021, of which Medicare paid Grant more than $17 Million. Grant used these funds to purchase a home in Raleigh, a townhome in Florida, a Porsche, several Range Rovers, several Jeeps, boat, jewelry, art, and electronics, as well as amassing more than a million dollars in cash and investments. These assets have been seized by the government to be used to recover the stolen funds.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle sentenced Grant. The United States Department of Health and Human Services Office of the Inspector General, and the Federal Bureau of Investigation, investigated the case. Assistant U.S. Attorneys William M. Gilmore and Karen Haughton 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-00253-BO .
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Armed Drug Dealer Sentenced to 12 Years in Federal Prison after Guns and Drugs Seized from Residence That was Home to Nine Minor ChildrenRead the Press Release
NEW BERN, N.C. – Dwayne Dantel Thomas, 43, of Greenville, North Carolina was sentenced today to 144 months in prison for Conspiracy to Distribute and Possess with the Intent to Distribute 40 Grams or More of Fentanyl, Possession with Intent to Distribute a Quantity of Methamphetamine, Cocaine, Fentanyl, and Heroin, and Possession of Firearms in Furtherance of a Drug Trafficking Crime. On June 28, 2022, Thomas, pleaded guilty to the charges.
“Fentanyl and meth overdoses are causing far too many deaths,” said U.S. Attorney Michael Easley. “We are partnering with local law enforcement in every corner of Eastern North Carolina to prosecute illicit fentanyl dealers who put lives at risk. This defendant recklessly stored fentanyl and meth in a home with minor children, and police recovered a stolen gun kept in a minor child’s bedroom.”
According to court documents and other information presented in court, Thomas was responsible for trafficking over 400 grams of fentanyl in Greenville between April 2017 and May 2021. In March 2020, the Pitt County Sheriff’s Office received information that Thomas was selling fentanyl from a residence on Old River Road. Between January and April 2021, law enforcement conducted six purchases of fentanyl from Thomas at his residence, using a confidential informant. On April 8, 2021, the Pitt County Sheriff’s Office executed a search warrant at Thomas’ residence. There, law enforcement encountered Thomas, his wife, and nine of their minor children in the residence. Additionally, officers seized over an ounce of methamphetamine, and a mixture of heroin, cocaine, and fentanyl, 53 pills, and other drug paraphernalia. Officers found drugs, packaging materials, and digital scales throughout the residence and inside the bathroom. Additionally, officers seized six loaded firearms of various makes and calibers, including two stolen firearms, and one firearm with an altered front grip. At least one of the firearms was recovered from one of Thomas’ minor children’s rooms.
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 Pitt County Sheriff’s Office, Greenville Police Department, and FBI investigated the case and Assistant U.S. Attorney Aakash Singh 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. 4:21-CR-52-FL.
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Raleigh Bank Teller Pleads Guilty to Theft of Customer Account InformationRead the Press Release
WILMINGTON, N.C. – A Raleigh woman pleaded guilty today for her role in a scheme to steal customer account information. Davia Delores Lockley, 26, faces up to 15 years in prison when sentenced in March of next year.
“Financial institutions and their customers count on the integrity of bank employees,” said U.S. Attorney Michael Easley. “This defendant used her position of trust to steal customers’ personal financial information as part of a scheme to defraud people of their hard-earned money.”
According to court documents and information presented in court, Lockley participated in a scheme to defraud banks and bank customers while employed as a teller at the Raleigh branch location of an area bank. As part of the scheme, bank employees were recruited by conspirators to identify customer accounts that contained significant funds and lacked a customer photo on file. They then accessed the customers’ information on the bank’s internal systems, including account numbers and personal identifiers, and sent that information to other conspirators using cell phones or by handwritten notes.
Runners were recruited to enter various banks and credit unions and withdraw funds from victim accounts. To facilitate the fraudulent withdrawals, conspirators obtained counterfeit drivers licenses using the victims’ personal identifiers and the runners’ photographs. The proceeds of the fraud were split amongst conspirators. Between January 2021 and June 2021, Lockley compromised the accounts of at least six bank customers. Lockley pleaded guilty to one count of Access Device Fraud.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after Chief United States District Judge Richard E. Myers II accepted the plea. The Federal Bureau of Investigation and Raleigh Police Department are investigating the case and Assistant U.S. Attorney Toby Lathan 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-00232-M-1.
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Garner Resident Faces up to Five Years in Prison for Failing to Pay over Employment TaxesRead the Press Release
WILMINGTON, N.C. – A Sharon Coker Burke, of Garner, N.C., pleaded guilty today for willfully failing to pay over employment taxes withheld from employee paychecks to the federal government. At sentencing set for the March 7, 2023 term, Burke faces a statutory maximum of 60 months in prison, a $250,000 fine, and three years of supervised release.
According to court documents and other information presented in court, Burke co-owned and managed the tax and financial affairs Bear Creek Landscape Associates, a commercial landscaping business headquartered in Garner. In her position, Burke was responsible for ensuring the timely filing of federal employment tax returns (Forms 941) for the business and the payment of all associated taxes—namely, amounts withheld from the paychecks of Bear Creek employees, including federal income taxes and Federal Insurance Contributions Act (FICA) taxes allocated for Social Security and Medicare programs. However, between 2003 and 2021, Burke routinely failed to pay over the withheld taxes to the Internal Revenue Service (IRS) as required, resulting in a tax underpayment of more than $800,000. During this same period, in response to IRS collection activity, Bear Creek rebranded itself as “KBE Landscaping” initially and, later, as “KB Landscaping.” But under Burke’s stewardship as the responsible officer, the successor companies continued to accrue significant employment tax liabilities due to non-payment.
Michael Easley, United States Attorney for the Eastern District of North Carolina, made the announcement after arraignment by Chief U.S. District Judge Richard E. Myers II. IRS Criminal Investigation 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. 5:22-CR-289-M.
Three Gang Members Convicted of Firearm Offenses and CarjackingRead the Press Release
RALEIGH, N.C. – Last week, three defendants from Wilson, Johnston, and Pitt Counties were convicted of firearms and carjacking charges. Kenneth “Smoke” Piper and Eric Cruz Pineda pleaded guilty last week to Carjacking and Brandishing a Firearm during a Crime of Violence. On Friday, a federal jury convicted Allen “Slim” Martin Smith of Possession of a Firearm by a Convicted Felon. All three are validated Gangsters Disciples members.
"Two of these defendants, Piper and Pineda, brazenly stole a car and kidnapped victims up with a sawed-off shotgun,” said U.S. Attorney Michael Easley. “Later, Piper and Smith led police on a high-speed chase across three counties. Thanks to local law enforcement’s coordinated efforts, all three will face serious federal sentences. The public is safer with these violent gang members behind bars.”
According to court records, on December 11, 2020, Piper and Pineda carjacked and kidnapped two male subjects in Wilson, North Carolina, over a drug debt. Piper and Pineda each brandished shotguns during the carjacking and assaulted both victims. Additionally, both Piper and Pineda forced the victims to strip down to ensure that neither had stolen drugs from the pair. Finally, Piper and Pineda forced both victims back into one of the victim’s cars and began driving them to an unknown location when a Wilson Police officer observed the group driving in downtown Wilson. Observing the two victims in the vehicle without any clothes, the police officer initiated a traffic stop on the vehicle. Pineda was driving the vehicle and Piper was seated in the backseat with a sawed-off shotgun pointed at one of the victims. Additional Wilson Police officers arrived on scene and arrested both Pineda and Piper. At the time, Pineda was on state parole. A search of the vehicle revealed the victims’ wallets, clothing, and belongings in the trunk of the vehicle with Pineda’s shotgun.
According to court records and evidence presented at the trial, on the morning of February 21, 2022, deputies with the Wilson and Johnston County Sheriff’s Offices were conducting active surveillance on Piper and Smith, two wanted fugitives, in Micro, North Carolina. Piper was out on bond for the carjacking charges when an arrest warrant was issued for drug charges stemming from a separate incident on February 14, 2021. Smith was on parole but had removed his ankle monitor. Officers observed the pair enter a vehicle and drive away from a trailer park. As officers attempted to conduct a traffic stop, the pair sped off and took law enforcement on a high-speed chase across three counties before crashing in La Grange, North Carolina. Piper and Smith then fled the vehicle and dropped a Hi Point .9mm pistol. The firearm was recovered by the Lenoir County K9 officers.
Following the manhunt for Smith and Piper, Kinston Police found Smith and arrested him. After Smith was arrested, he waived his Miranda Rights and admitted to law enforcement that he had fled from police with Piper and that there was a gun in the car. A short time later, the Wilson County Sheriff’s Office received anonymously a Snapchat video that Smith had recorded of himself and Piper inside the car during the high-speed chase. In the video, Smith and Piper are seen pointing the gun at the camera, with Smith saying, “No, no, no - you can’t catch me - I’m the Gingerbread man.” Piper was arrested the next day.
Smith faces a statutory maximum of 10 years in prison when sentenced. Piper and Pineda face minimum sentences of 7 years and maximum sentences of life imprisonment. All three are scheduled to be sentenced in March of next year.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict and pleas. The Wilson and Kinston Police Departments, The Wilson, Johnston and Lenoir County Sheriff’s Offices, and The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the cases and Assistant U.S. Attorneys Aakash Singh and Leonard Champaign prosecuted 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 No.5:21-cr-00106-D.
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Goldsboro Man Sentenced to 18 Years for Trafficking Multi-Kilogram Quantities of MethamphetamineRead the Press Release
RALEIGH, N.C. – Chris Montreal Davis, 42, of Goldsboro, North Carolina was sentenced to 216 months in prison for trafficking methamphetamine.
According to court documents and information presented at the sentencing hearing, in May of 2018, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Wayne County Sheriff’s Office and the Winston-Salem Police Department, received information that Davis was part of a large-scale drug trafficking organization operating in Goldsboro which distributed large quantities of crystal methamphetamine and that Davis maintained several “trap houses” or “stash houses” in Goldsboro and employed runners, often times drug users, to hand deliver drugs.
On August 8, 2019, and September 12, 2019, law enforcement executed residential search warrants at the Goldsboro “trap houses” during which the following items were located and seized: drug paraphernalia, two .45 caliber handguns, a .40 caliber handgun, marijuana, $7,185.28 in U.S. currency, 52 grams of cocaine base, 57.5 grams of cocaine hydrochloride, 45 grams of heroin, an SKS assault rifle, a .38 caliber handgun, and a crossbow.
Davis was named in an Indictment filed on March 12, 2020, charging him with Conspiracy to Distribute and Possess with Intent to Distribute 50 Grams or More of Methamphetamine and 500 grams or more of Cocaine, from 2018 to March 12, 2020, (Count One) and Distribution of 50 Grams or More of Methamphetamine and Aiding and Abetting, (Count Two). On March 3, 2021, Davis entered a plea of guilty to both counts.
Over the course of the conspiracy, Davis was conservatively responsible for assisting in the distribution more than 15 kilograms of cocaine, 15 kilograms of methamphetamine, and 45 grams of heroin.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Wayne County Sheriff’s Office and the Winston-Salem Police Department investigated the case and Assistant U.S. Attorney Jennifer C. Nucci 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 number 5:21-CR-00198-M-1.
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Eight Trey Gangster Crip Sentenced to 420 Months in Prison for Drug Trafficking and Money LaunderingRead the Press Release
RALEIGH, N.C. – Troy Davis, aka “G-Trip” and “Trip” was sentenced yesterday to 420 months in prison for conspiracy to distribute and possess with intent to distribute fifty (50) grams or more of methamphetamine, five (5) kilograms or more of cocaine and a quantity of marijuana and conspiracy to commit money laundering. On August 9, 2022, Davis pled guilty to all charges. Davis resided in Los Angeles, California, and traveled to Raleigh, North Carolina where he trafficked drugs.
“Our efforts to disrupt and dismantle dangerous drug organizations through this investigation has led to more than twenty indictments, and this prosecution resulted in removing a high-ranking national gang leader from our streets for 35 years,” stated U.S. Attorney Michael Easley. “Raleigh is a safer place now that Davis, and many of his coconspirators are facing time behind bars.”
“An incredible amount of work went into building this case and taking this very dangerous individual off our streets,” said Bureau of Alcohol, Tobacco and Firearms (ATF) Special Agent in Charge Bennie Mims. “Through a collaborative effort with local, state, and federal partners, we brought a high-ranking gang member and one of the area’s main suppliers of illegal narcotics to justice and bettered public safety across the community.”
According to court documents and other information presented in court, Davis was the Los Angeles based source of supply for Dexter Maxwell, the leader of the Eight Tray Gangster Crips (ETGC) for North and South Carolina prior to his arrest. Maxwell has also pleaded guilty to drug trafficking charges and is awaiting sentencing.
Davis held the rank of “G”, which is one of the highest levels of leadership in the ETGC organization. Davis used his influence to direct members of his gang in distributing and selling methamphetamine, cocaine and marijuana in Raleigh. Davis personally flew from Los Angeles to Raleigh and lived for a month on Glenwood Avenue to help the local Raleigh ETGC learn how to cut the narcotics to increase profits for the organization. Davis was heavily involved in the day-to-day operations of the Raleigh ETGC.
For approximately two decades, ETGC has operated in North Carolina, including in the North Carolina prison system. The ETGC is recognized as a national criminal street gang originating out of Los Angeles and has a reputation for a propensity for violence that includes several homicides, aggravated assaults, and robberies. Members and associates of ETGC have been involved in numerous violent crimes that have resulted in the loss of life, decrease in quality of life, and damage to societal norms in and around the City of Raleigh. The ETGC members committed acts of violence to maintain membership and discipline, both within the gang and against non-gang members. Davis has a long history of violence and began committing acts of violence at age thirteen (13) and continued committing acts of violence against cooperators while in custody after pleading guilty in this case. Because of his violent acts, he is currently in solitary confinement.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (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. To date, more than 20 individuals have been indicted because of this investigation, including Deandre Earp, who was sentenced in January 2022 to 40 years in prison. Most of the defendants have pleaded guilty and are awaiting sentencing.
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 led the investigation with assistance from the Los Angeles Police Department and the Federal Bureau of Investigation, Raleigh/Wake City-County Bureau of Identification and United States Marshals Service. 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-6.
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Armed Fentanyl Trafficker Caught in Nash County Sentenced to 20 Years in PrisonRead the Press Release
RALEIGH, N.C. – Anthony Cyquan Herring, 40, was sentenced to 240 months in prison for possessing fentanyl and other drugs for distribution, while armed with a loaded handgun. Herring’s sentence comes after an Elizabeth City, NC, jury found him guilty of all charges in March of this year.
“This career criminal was running dangerous drugs through North Carolina with his children and a loaded gun in the car,” said U.S. Attorney Michael Easley. “Now, he will spend the next two decades behind bars.”
“Nash County appreciates the diligence of the U.S. Attorney’s Office in prosecuting this case,” said Nash County Sheriff Keith Stone. “This was an opportunity to apprehend a dangerous drug trafficker before he could distribute his deadly poison into the hands of children and families. Fentanyl is the main factor for overdose deaths in the community and we will not stop our fight to interdict these narcotics before they reach the citizens of Nash County. The Nash County Sheriff’s Office is committed to removing gangs, illegal guns, and drugs from our communities through our partnerships with federal law enforcement."
The case started when Nash County Sheriff Keith Stone stopped an SUV for speeding along I-95. The car was being driven by Herring and smelled like marijuana. An ensuing search revealed a loaded handgun within reach of Herring. In Herring’s luggage, Deputies found thirty-six grams of heroin and fentanyl, fifty grams of cocaine, marijuana, $2,200 in cash, and materials for packaging and distributing drugs.
Herring claimed he was driving to the beach for a vacation. But deputies discovered Herring’s two young children in the back of the SUV, sleeping and urinating in bottles as their dad drove through the night from Connecticut on the way to South Carolina.
Herring was sentenced as an Armed Career Criminal because he had at least three prior convictions for drug trafficking crimes.
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 Nash County Sheriff’s Office investigated the case and Assistant U.S. Attorney Tyler Lemons and former Assistant U.S. Attorney J.D. Koesters 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-00347-BO-1.
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Havelock Methamphetamine, Heroin, and Fentanyl Dealer Sententenced to 15 Years in PrisonRead the Press Release
NEW BERN, N.C. – Kenneth Dewayne Whitehead, 43, of Havelock, North Carolina was sentenced today to 180 months in prison for distributing five grams or more of methamphetamine and a quantity of fentanyl. Following his release, he will face 5 years of supervised release.
According to court documents and information presented at the sentencing hearing, on April 14, 2022, Whitehead pleaded guilty to one count of distributing five grams or more of methamphetamine and a quantity of fentanyl.
In January 2021, members of the Havelock Police Department received information that Whitehead was distributing methamphetamine, heroin, and fentanyl in the Havelock area.
From January to June 2021, investigators conducted several controlled purchases of narcotics from Whitehead in Havelock.
For example, on January 29, 2021, Whitehead sold 13.48 grams of crystal methamphetamine with a purity of 97% to a confidential informant. On February 8, 2021, Whitehead sold 3.26 grams of fentanyl. On May 19, 2021, Whitehead sold 57.76 grams of crystal methamphetamine with a purity of 100%. Additional controlled purchases were also conducted.
In total, Whitehead was found responsible for 17.5 grams of heroin, 20.795 grams of fentanyl, 30.7 grams of methamphetamine, and 155.39 grams of crystal methamphetamine.
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 Havelock Police Department investigated the case and Assistant U.S. Attorney Scott Lemmon 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 number 4:21-cr-00059-FL.
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Wake County Man Sentenced to 20 Years in Prison for Child Pornography ChargesRead the Press Release
NEW BERN, N.C. – Dale Ingold, 67, of Raleigh, North Carolina was sentenced today to 240 months imprisonment followed by a lifetime of supervised release for possessing child pornography. He admitted that he had been accessing child pornography since 1989, which was substantiated by Homeland Security’s location of 67,581 images and 1,505 videos files on his digital devices. Ingold pleaded guilty on December 13, 2021, to Possession of Child Pornography.
According to court documents and other information presented in court, Ingold was discovered accessing child pornography while at work. His employer reported the activity to the Cary Police Department. Ingold denied accessing child pornography to both his employer and to law enforcement, however, he was immediately fired from his job. When agents with Homeland Security went to Ingold’s residence and asked to speak to him, he admitted to his longstanding efforts to possess child pornography. Furthermore, he allowed law enforcement to collect digital devices from his home that were later analyzed and found to have the large cache of images and videos depicting the sexual abuse of children.
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. Cary Police Department and the Department of Homeland Security 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. 5:20-CR-00130-FL.
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Raleigh Man Sentenced to Nearly 20 Years in Prison for Producing Child PornographyRead the Press Release
NEW BERN, N.C. – Stephan Grimes, 48, of Raleigh was sentenced today to 236 months in prison for production of child pornography. Grimes pleaded guilty to the charge on September 14, 2021.
According to court documents and other information presented in court, in October 2018, the Cary Police Department was investigating a peer-to-peer child pornography distribution on the BitTorrent filesharing network. They identified an IP address from which they were able to download a torrent file containing a large amount of child pornography. Internet service provider records identified the IP address as belonging to the Raleigh home of Stephan Grimes.
Homeland Security agents, Wake County Sheriff’s deputies, and U.S. Marshals executed a search warrant at Grimes’ home on February 20, 2019. Grimes was interviewed and admitted to downloading child pornography. An on-site forensic review of a computer also revealed multiple images depicting a young girl sitting on a couch in the home as Grimes placed a sex toy on her genitals. Grimes identified the girl by name and initially claimed that she was 18. Agents noted wall-mounted surveillance cameras in the living room and in the bedroom that appeared to have been used to produce the images. Agents seized a computer, hard drives, and a USB drive.
Officers interviewed the subject of the photographs, and she described to officers how Grimes made sexual advances that eventually resulted in them having sex when she was 17. Grimes took sexual photos and recordings despite her being a minor and told her that she could make money through pornography once she was 18.
A full forensic examination of Grimes’ electronic devices uncovered 437 images and 5 videos of child pornography. While many files appeared to have been collected from the internet, the great majority were of the then-minor victim. Two long videos depicting the sexual abuse of the victim were filmed in December 2018 and January 2019, using the dual wall-mounted cameras in Grimes’ home.
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 and Wake County Sheriff’s Office 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. 5:20-cr-00019-FL.
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Inmate Sentenced to 18 Months for Attempting to Introduce ContrabandRead the Press Release
RALEIGH, N.C. – A federal inmate was sentenced on Tuesday to 18 months for attempting to introduce contraband, specifically Buprenorphine, a schedule III controlled dangerous substance, into the Federal Correctional Institution in Butner, North Carolina (“FCI Butner II”).
According to court documents, Malcolm Hird, 33, instructed a visitor to bring the Buprenorphine to FCI Butner II during a scheduled visit with him. Hird utilized phone calls and coded speech to instruct the visitor on how to successfully bring and transfer the contraband to him during the institution visit. The visitor, Hird’s co-defendant in this matter, did as instructed; however, she was intercepted by Bureau of Prisons (“BOP”) investigators before being able to transfer the contraband. Following a search of her person, BOP staff uncovered a green balloon filled with a substance that later tested positive as Buprenorphine.
Hird pled guilty on May 12, 2021, to a Criminal Information charging him with attempting to obtain a prohibited object, to wit: Buprenorphine, in violation of 18 U.S.C. § 1791(a)(2) and (b)(1).
Michael Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after United States District Judge Louise W. Flanagan sentenced Hird. The Federal Bureau of Prisons investigated the case and Special Assistant U.S. Attorney Mallory Brooks Storus prosecuted the case.
Related court documents and information are located 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-00427-FL.
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Cary Man Sentenced to More Than 12 Years for Role in Medicaid Fraud SchemeRead the Press Release
RALEIGH, N.C. –Antonio Deon Fozard, of Cary, was sentenced today to 151 months in prison and three years of supervised release for conspiracy and health care fraud. On February 25, 2021, Fozard pleaded guilty to the charges. As part of the judgment, Fozard was also ordered to pay $4,242,794 in criminal restitution to the North Carolina Fund for Medical Assistance.
“This defendant stole millions intended to provide healthcare to low-income families,” said U.S. Attorney Michael Easley. “We will continue to investigate and prosecute those that mastermind these unconscionable schemes to misuse taxpayer funds meant to help those in need.”
According to court documents and other information presented in court, between approximately 2012 and 2017, Fozard was a leader in a multi-district conspiracy to defraud the North Carolina Medicaid system through the submission of more than $7 million in false and fraudulent claims for the reimbursement of behavioral health services. Medicaid is a federally funded health care benefit program that helps pay for medical services for low-income individuals and their families. In North Carolina, Medicaid is administered by the North Carolina Department of Health and Human Services, Division of Health Benefits.
Fozard owned and operated a number of behavioral health companies that purported to provide services to Medicaid beneficiaries in the Middle and Eastern Districts of North Carolina, including Group Service, Group Service Solution, Zoofari Kids, and In Touch of Care. Each of these entities engaged in a systematic effort to steal from Medicaid by billing for services that were never rendered.
Group Service maintained offices at various times in Raleigh, Dunn, Durham, and Sanford. Among other things, Group Service employed co-conspirators Reginald Van Reese, Jr., and Ruben Samuel Matos to canvas low-income neighborhoods to identify eligible Medicaid recipients and collect their personal identifying information (PII), including their Medicaid identification numbers. The harvested PII was then incorporated into false and fraudulent claims that Group Service submitted to Medicaid for reimbursement. Various “note writers,” including co-conspirator Humberto “Ghost” Mercado, were enlisted to fabricate supporting documentation in the event of a Medicaid audit. At one point during the conspiracy, Group Service was audited by a Medicaid contractor. To obstruct the audit, Fozard directed note writers to fabricate medical records and then caused those records to be provided to investigators.
During much of the same time period, Fozard and another co-conspirator, Sharita Mathis Richardson, were operating Zoofari Kids, which was similarly defrauding North Carolina Medicaid. Zoofari operated in Durham and Garner. The Durham location shared the same address as Group Service and purported to provide mental health treatment to Medicaid recipients. The Garner location was strictly a drop-in daycare facility. The daycare, however, was effectively funded by Medicaid fraud proceeds paid out to Zoofari’s mental health business. Under Fozard’s leadership, Zoofari filed thousands of false claims in the name of a rendering provider whose information was used without his knowledge or consent, obtained lists of stolen Medicaid beneficiary information for incorporation into the fraudulent billings, and created fake medical records.
After Group Service was barred from billing Medicaid, Fozard engaged in another billing scheme through a different business, In Touch of Care. According to the investigation, In Touch of Care recycled Medicaid information from fraudulent billings submitted by prior Fozard-controlled entities. Additionally, Fozard caused In Touch of Care to bill for services using the clinician information for a nurse practitioner who never performed the listed services.
In addition to engaging in health care fraud through businesses under his direct control, Fozard collaborated with third party owners and operators of other purported behavioral health companies for the purpose of cheating the Medicaid system. For example, Fozard conspired with brothers Jerry and Tony Taylor, the owners of Taylor Behavioral Health and Options Driven in Monroe, North Carolina, by selling them lists of stolen Medicaid beneficiary information for use in their own fraudulent billings.
Reginald Van Reese, Jr., Ruben Samuel Matos, Humbert Mercado, and Sharita Mathis Richardson, each pleaded guilty to health care fraud charges and were sentenced to prison in related cases filed in the Eastern District of North Carolina. Co-conspirators Jerry and Tony Taylor pleaded guilty to heath care fraud charges and were sentenced to prison in related cases filed by the United States Attorney’s Office for the Western District of North Carolina.
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 Federal Bureau of Investigation and the North Carolina Medicaid Investigations Division 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. 5:20-CR-446-FL.
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Ahoskie Man Sentenced to Nearly 10 Years on Drug and Firearm Charges Stemming from Domestic Violence CallRead the Press Release
RALEIGH, N.C. – Capone Ridley of Ahoskie was sentenced today 117 months in prison and five years of supervised release for possession with intent to distribute powder and crack cocaine and possession of a firearm in furtherance of that drug crime. Ridley, 29, pled guilty to the charges on August 10, 2022.
According to court documents and other information presented in court, on May 21, 2020, the Ahoskie Police Department received a call to Hill Street in Ahoskie regarding a domestic assault by defendant Capone Ridley. When officers arrived, the victim-caller was on scene, but Ridley had left. The victim told officers that Ridley had assaulted her after a dispute over missing money and that she knew he carried a firearm. She provided consent for law enforcement to search the house. As she reviewed the consent form with law enforcement, Ridley called her. She then put the call on speakerphone so that the officers could hear the conversation. Ridley instructed the victim not to let officers search the house, but she told him it was too late.
During the search, officers found a bag containing 24 grams of a mixture of powder cocaine and cocaine base in the master bedroom. In a bathroom closet, in a black and yellow bookbag, officers found two bags containing over 100 grams of powder cocaine. Also in the closet, they located a Roman/Cugir Micro Draco 7.62mm pistol with a fully loaded barrel magazine. The victim told officers that the drugs and gun belonged to Ridley.
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 Ahoskie Police Department 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. 2:22-cr-0004-D.
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North Carolina Man Convicted in Scheme to Use Stolen Identities to Obtain COVID-19 Relief MoniesRead the Press Release
New Bern, N.C. – Dexter Duncan, 24, pleaded guilty yesterday to conspiracy to commit money laundering with respect to the fraudulent proceeds of Economic Injury Disaster Loan (“EIDL”) COVID-19 loans guaranteed by the Small Business Administration. Duncan faces up to 20 years in prison when sentenced next year in addition to restitution and a potential fine.
“This defendant used stolen identities to pilfer money our nation set aside to help small businesses crippled by the pandemic,” said U.S. Attorney Michael Easley. “He squirreled the funds into bank accounts under his control for his personal benefit and or under the control of his co-conspirators. My office will continue to partner with law enforcement at every level to hold COVID fraudsters accountable for their misuse and abuse of taxpayer dollars.”
As part of his scheme to defraud, Duncan used stolen personal identities to apply for EIDL benefits. Each loan application submitted by Duncan contained false statements, misrepresentations and omissions related to, among other things, income, employment, and claimed business entities. Duncan signed various financial documents, including loan and security agreements, using stolen identities that Duncan obtained from a co-conspirator. Duncan deposited the loan funds into his personal bank account and other bank accounts within his control. In total, Duncan received $180,900 in fraudulent loan proceeds.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after United States Magistrate Judge Robert B. Jones, Jr. accepted the plea. Internal Revenue Service (IRS) Criminal Investigation is leading the investigation. Special Assistant U.S. Attorney Lisa K. Labresh and Assistant U.S. Attorney Aakash Singh are prosecuting the case.
The Eastern District of North Carolina’s COVID Task Force is a part of an effort to coordinate COVID-related fraud investigations and prosecutions in Eastern North Carolina. On May 17, 2021, the United States Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
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-00196-FL.
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Ft. Bragg Vendor Pleads Guilty to Embezzlement ConspiracyRead the Press Release
WILMINGTON, N.C. – Darryl Sealey, A/K/A, “Tim”, of Fayetteville, pleaded guilty today for his role in a multi-year conspiracy which embezzled government funds. When sentenced next year, Sealey faces up to 60 months in prison, $6,300,000 in restitution, and a $3,500,000 forfeiture judgment.
“This investigation is putting a stop to the culture of fraud that was prevalent on Ft. Bragg,” said U.S. Attorney Michael Easley. “We will continue to investigate and prosecute those that steal from our government and line their pockets with money meant to support our troops.”
“Today's plea is a fitting end for those who conspire to defraud the United States Army,” said Special Agent in Charge L. Scott Moreland of the Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office. “The men and women of CID are proud to work with our federal law enforcement partners to protect the financial resources of the U.S. Government from those who commit criminal acts associated with government contracting and purchasing.”
"Collusion between trusted Government employees and contractors tears at the fabric of public trust and will simply not be tolerated,” said Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “We remain committed, along with our law enforcement partners, to rooting out fraud and corruption and safeguarding the valuable resources entrusted to the Department of Defense by the American Taxpayer.”
According to court records, Sealey operated Aaron’s Supply, Inc., a company selling various supplies for maintenance of equipment and facilities to the Operations and Maintenance Division, Directorate of Public Works (DPW), at Fort Bragg, NC. Sealey conspired with Morris Cooper, a purchasing agent at DPW to steer contracts for supplies to specific vendors in return for cash payments and gifts, and by inflating prices on supplies, increasing both the profits to the vendor and the cash payment made to Cooper and/or his wife, Beverley Cooper.
Morris and Beverley Cooper were earlier convicted for their roles in the conspiracy, Morris Cooper receiving a sentence of 17 months’ imprisonment, and Beverley Cooper a sentence of probation. Both agreed to pay $6,300,000 joint and severally in restitution and an order of forfeiture was entered for more than $1.2 million, the amount they agree they personally profited from the conspiracy.
In addition to the Coopers, three former employees of DPW at Ft. Bragg were recently convicted and sentenced for the receipt of bribes from other vendors. On May 18, 2022, Calvin Jordan was sentenced to 42 months’ imprisonment; on October 28, 2022, Stephen Paul Sabato was sentenced to 33 months’ imprisonment; and on November 3, 2022, Edward Crisco was sentenced to a term of imprisonment of 12 months and one day, all having received bribes while employed by the federal government. Sealey’s sentencing is anticipated in March 2023.
Sealey’s plea was entered today before United States Magistrate Judge Robert B. Jones, Jr. Defense Criminal Investigative Service and the U.S. Army Criminal Investigative Division, with assistance from the Federal Bureau of Investigation, are investigating 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. 5:19-CR-328-FL, 5:21-CR-313-M, and 5:22-CR-200-FL.
Cary Man Pleads Guilty in Multi-Million COVID-19 Fraud SchemeRead the Press Release
GREENVILLE, N.C. – Quentin Allen Jackson, 56, pleaded guilty today to conspiracy to commit money laundering with respect to the fraudulent proceeds of Paycheck Protection Act (“PPP”) COVID-19 loans guaranteed by the Small Business Administration. Jackson faces up to twenty years in prison and a potential fine.
“The defendant took money meant to help small businesses struggling during the pandemic,” said U.S. Attorney Michael Easley. “We will vigorously pursue criminals who lined their pockets with taxpayer money while the pandemic crippled local businesses.”
“The Paycheck Protection Program (PPP) was the key to survival for many small businesses during the COVID-19 pandemic,” said Special Agent in Charge Donald “Trey” Eakins of IRS Criminal Investigation, Charlotte Field Office. “PPP funds should be reserved for legitimate businesses and their hard-working employees who suffered as a result of the pandemic. IRS Criminal Investigation along with our law enforcement partners are committed to pursue those who commit such fraud.”
In March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was designed to provide emergency financial assistance to millions of Americans who were suffering the economic effects caused by 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).
Jackson conspired with others to obtain fraudulent PPP loans in the names of several companies under Jackson’s control. After receiving the proceeds of the fraudulent PPP loans, Jackson carried out a series of steps detailed by his co-conspirators to make it appear as though the borrower’s company was paying bi-weekly payroll to its employees. Over a series of six to eight weeks, Jackson wrote checks payable to each of the individuals previously named as employees in the PPP loan applications. These actions made it appear as though Jackson’s companies were paying regular wages as intended by the CARES Act. In most instances, the recipients of the checks were either not employees of the borrower company at all, or they were not actually earning wages comparable to what was represented in the loan applications. Jackson instructed his purported employees to cash the checks, and then return the illicit cash to him.
In addition to directly engaging in the PPP fraud described above, Jackson also served as a middleman, earning a fee from his co-conspirators for each additional fraudulent borrower he recruited. He ultimately recruited over a dozen individuals who obtained fraudulent PPP loans. Those Jackson recruited engaged in the same scheme described above to launder the proceeds of the fraudulent loans. Nearly $4 million of fraudulent PPP disbursements are attributable to Jackson or to individuals he recruited to the scheme.
Jackson pleaded guilty to Conspiracy to Commit Money Laundering in violation of 18 U.S.C. § 1956(h). Sentencing before United States District Judge James C. Dever III is scheduled to occur next 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 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.
The Eastern District of North Carolina’s COVID Task Force is a part of an effort to coordinate COVID-related fraud investigations and prosecutions in Eastern North Carolina. On May 17, 2021, the United States Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
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-00180-D.
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U.S. Attorney Michael Easley Announces Appointment of 2022 Eastern District Election OfficerRead the Press Release
RALEIGH, N.C. – U.S. Attorney Michael Easley announced today that Assistant U.S. Attorney (AUSA) Susan Menzer will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for tomorrow’s November 8, 2022, general election. AUSA Menzer has been appointed to serve as the District Election Officer (DEO) for the Eastern District of North Carolina, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Easley said, “Every citizen must be able to vote without interference or discrimination and to have their vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without unlawful threats of violence. The Justice Department is committed to protecting the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
U.S. Attorney Easley stated that: “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Menzer will be on duty in this District while the polls are open. She can be reached by the public at the following telephone numbers: (919)856-4530 and (919)856-4099.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (704)672-6100.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
U.S. Attorney Easley said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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Wilmington Felon Receives 12 Years for Meth and Gun OffensesRead the Press Release
WILMINGTON, N.C. – Charles Hunter Nixon, 28, of Wilmington, was sentenced today to 144 months in prison for possession with intent to distribute five grams or more of methamphetamine and possession of a firearm in the furtherance of a drug trafficking crime. On May 17, 2022, Nixon, pleaded guilty to the charges.
“Our office will continue to work closely with law enforcement at every level to make communities safer by investigating and prosecuting individuals that are bringing illegal and deadly drugs and guns into our neighborhoods,” said U.S. Attorney Michael Easley.
“Nixon is off the street today thanks to the hard work of the Wilmington Police Department. The partnership with the U.S. Attorney's Office, coupled with the financial support of New Hanover County, makes results like the one we saw in court possible. Our offices remain committed to keeping our community safe by taking violent offenders and narcotics off the street," said District Attorney Ben David.
“I am very proud of the men and women of the Wilmington Police Department for making this arrest and getting this violent criminal off our streets,” said Wilmington Police Department Chief Donny Williams. “I also would like to thank the U.S. Attorney’s Office and our partner agencies both local, state, and federal who work with us consistently to put these individuals behind bars. We are committed to reducing violence and illegal drug distribution within our community and will continue to work tirelessly to create a safe environment for all.”
According to court documents and other information presented in court, on May 14, 2021, officers with the Wilmington Police Department conducted a traffic stop on the defendant’s vehicle for reckless driving. During the traffic stop, officers observed an AM-15 semi-automatic rifle on the floorboard of the backseat and discovered the defendant was a convicted felon and had outstanding warrants for his arrest for cutting off his GPS ankle monitor. During a search of the vehicle, officers located an ammunition belt with four rifle magazines, approximately 101 rounds of rifle ammunition, 12 bindles of heroin, digital scales, and miscellaneous drug paraphernalia. Officers also located approximately 38 grams of methamphetamine in the defendant’s pocket. At the time of this offense, the defendant was on supervised release for a 2019 conviction for assault with a deadly weapon inflicting serious injury.
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 FBI’s Coastal Carolina Safe Street’s Gang Task Force, the FBI’s Transnational Organized Crime Western Hemisphere Unit (TOC-West), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Drug Enforcement Administration and the Wilmington Police Department investigated the case and Special Assistant United States Attorney William Van Trigt prosecuted the case. 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), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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-00139M.
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Jacksonville Armed Meth Trafficker Sentenced in Federal CourtRead the Press Release
RALEIGH, N.C. – Lee Graham, a 31-year-old Jacksonville man, was sentenced on November 2, 2022, to 180 months in prison and 60 months of supervised release for trafficking more than 229 grams of crystal methamphetamine and using a firearm in connection with such drug trafficking. On August 4, 2022, Graham, who has three prior state drug trafficking convictions, pled guilty to the federal charges.
According to court documents and other information presented in court, the Jacksonville Police Department (“JPD”) had received information that led them to believe that Graham was trafficking in large quantities of crystal meth. From November 2020, through mid-January 2021, the JPD utilized an undercover agent and a cooperating informant to conduct ten controlled purchases of illegal drugs from Graham. During the controlled purchases, Graham sold a total of 229 grams of crystal meth (having a purity rate of 98-99%), 12 grams of fentanyl, and quantities of crack cocaine and heroin. Graham, who was on state probation at the time he was involved in his most recent drug trafficking, used and carried a Smith and Wesson handgun during the last controlled purchase.
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 Jacksonville Police Department, the Onslow County Sheriff’s Office, the Carteret County Sheriff’s Office, and the ATF Wilmington Resident Office investigated the case and Assistant U.S. Attorney Dennis M. Duffy 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-00018-BO.
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Wilson Man Sentenced to 20 Years on Child Pornography ChargeRead the Press Release
RALEIGH, N.C. – Jose Lopez of Wilson was sentenced today to 240 months in prison for possession of child pornography. Lopez, 20, pleaded guilty to the charge on August 8, 2022. According to court documents and other information presented in court, from February through August of 2021, the National Center for Missing and Exploited Children (NCMEC) received eight reports of illegal activity from Snapchat, Discord, and Twitter for an IP address out of Wilson, NC. Surveillance and database inquiries identified the resident as the defendant Jose Lopez. Law enforcement executed a search warrant at the house in Wilson on October 25, 2021, and seized multiple electronic devices, including phones and laptops. A forensic examination of the devices uncovered over 700 videos and 1,500 images depicting children engaged in sexual acts or displaying their genitals. Some depicted infants and toddlers. The examination also uncovered online chats in which Lopez discussed a desire to have sex with children and brags about raping three minors, including a nine-year-old girl.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
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 Department of Homeland Security 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-0051-BO.
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Jacksonville Armed Meth Trafficker Sentenced in Federal CourtRead the Press Release
RALEIGH, N.C. – Justin Tyshawn Pickett, 30, of Jacksonville was sentenced on November 1, 2022, to 180 months in prison and 60 months supervised release for trafficking crystal methamphetamine and possessing a firearm in furtherance of drug trafficking. On April 12, 2022, Pickett pleaded guilty to the charges.
According to court documents and other information presented in court, Pickett was responsible for trafficking at least 40 grams crystal methamphetamine, 907 grams of methamphetamine, and 470 milligrams of oxycodone from June 2019 to March 18, 2021. At the time of his arrest on March 18, 2021, Pickett possessed a loaded 9 mm handgun, marijuana, oxycodone, a fentanyl analogue, heroin, crack cocaine, baggies, a digital scale, and $2,470 in cash. At sentencing, Judge Boyle considered Pickett’s five prior state felony convictions (including breaking and entering, felon in possession of a firearm, and drug possession) and noted the fact that Pickett was wearing a probation ankle monitor during his sale of 40 grams of crystal meth as a factor in his sentence.
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 Jacksonville Police Department, the Onslow and Duplin County Sheriffs’ Offices, and the ATF Wilmington Resident Office investigated the case with assistance from the N.C. Probation Department. Assistant U.S. Attorney Dennis M. Duffy 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-00018-BO.
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Wilmington Felon Receives 54 Months for Gun OffenseRead the Press Release
WILMINGTON, N.C. – Rufus Lamar Bowser, 30, was sentenced today to 54 months in prison for felon in possession of a firearm. On July 7, 2022, Bowser pleaded guilty to the charges. According to court documents and other information presented in court, on January 19, 2022, officers with the Wilmington Police Department conducted a traffic stop on a vehicle in which the defendant was a passenger. Based on the defendant’s actions and the detection of the odor of marijuana coming from the vehicle, officers asked the occupants to step out of the vehicle. When officers attempted to frisk the defendant for weapons, he tried to run from officers and a brief struggle ensued. During the struggle, a loaded pistol fell from the defendant’s pocket.
At the time of the offense, the defendant was on post release supervision for his 2008 convictions for second-degree murder and robbery with a dangerous weapon. Additionally, the defendant had outstanding warrants for his arrest for absconding from supervision and attempted first degree burglary.
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 (ATF), the Wilmington Police Department’s Gun Crime Task Force, and the Mobile Field Force Unit investigated the case and Special Assistant United States Attorney William Van Trigt prosecuted the case. 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-00035-D.
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Craven County Man Sentenced to 10 Years in Prison for Child Pornography ChargesRead the Press Release
NEW BERN, N.C. – A Craven County man was sentenced today to 120 months imprisonment followed by 120 months of supervised release for possessing child pornography. Melvin David Wetzel, III, 74, of Havelock, North Carolina pled guilty on March 9, 2022, to Possession of Child Pornography. According to court documents and other information presented in court, officers with the Havelock Police Department were conducting a proactive investigation into the trading of child pornography on peer-to-peer networks. Between July 16, 2020, and July 20, 2020, law enforcement was able to download 8 videos depicting child sexual abuse from a computer associated with Wetzel’s IP address.
Law enforcement obtained a search warrant for Wetzel’s residence, and officers with the Havelock Police Department and the Department of Homeland Security executed the search warrant on July 29, 2020. Wetzel was present at the time of the search and consented to law enforcement retrieving and examining his digital devices. Wetzel admitted to using a file sharing program and searching for child pornography. He told law enforcement he had been viewing child pornography since 2010. The search resulted in law enforcement finding multiple images and videos. Wetzel had been previously convicted of Third-Degree Sexual Exploitation of a Minor in Pitt County in 2012.
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. Havelock Police Department and the Department of Homeland Security 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. 4:21-CR-0003-FL.
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California Man Responsible for Distributing More Than 100 Kilos of Meth to More Than 10 States Receives 26 Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – Joseph Willie Jr., 31, of California, was sentenced to 312 months in prison for his role as the leader of an armed, interstate methamphetamine trafficking organization known as the “Grape Street Drug Trafficking Organization (DTO).”
““We are dismantling violent drug trafficking organizations and putting their leaders behind bars,” said U.S. Attorney Michael Easley. “Gangs and cartels bringing poison into Raleigh and elsewhere in Eastern North Carolina will be met with the full force of federal law enforcement, no matter where they live.”
““This was a significant investigation impacting public safety across multiple states,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Bennie Mims. “We know that local drug traffickers can contribute significantly to increased violent crime rates. To disrupt a drug trafficking network of this size has a large impact on making our communities safer in North Carolina, as well as communities across the country.”
According to court documents, evidence presented in court and other documents, the Grape Street DTO imported large quantities of highly pure—and highly addictive—crystal methamphetamine from Mexico.
The DTO then distributed the drugs throughout the United States, including Alabama, Florida, Indiana, Maryland, Mississippi, Missouri, Nevada, North Carolina, Ohio, Oklahoma and Tennessee.
Willie Jr. was convicted of three counts: conspiracy to possess with intent to distribute and distribute 500 grams or more of a substance containing methamphetamine (Count One); distribution of more than 500 grams of a substance containing methamphetamine (Count Two); and conspiracy to commit money laundering by concealment (Count Three).
The investigation uncovered that from 2016 until the time of his arrest in 2020, Willie Jr. was responsible for distributing more than 100 kilograms of highly pure methamphetamine. From those sales, Willie Jr. received more than a million dollars in drug proceeds.
Tanna Nash, Willie’s Jr. wife, received an additional quarter of million dollars in drug proceeds as a part of this organization.
Between July 2020, and February 3, 2021, ATF Undercover Agents posing as a member of Willie Jr.’s inner circle made 6 controlled purchases of more than 3 kilograms of crystal methamphetamine from Willie Jr.
ATF sent the money to Nash in California. After Nash received the money, Willie Jr. sent the methamphetamine to Raleigh and Kinston, North Carolina in pound- and two-pound increments.
The organization primarily distributed the methamphetamine in Craven, Lenoir and Onslow counties. At the time of his arrest, Willie Jr. was attempting to expand into Fayetteville, North Carolina.
In August 2018, Homeland Security Investigators (Border Enforcement Security Taskforce) made three controlled purchases totaling twelve pounds of methamphetamine in Tampa, Florida, which had been sent at the direction of Willie Jr.
According to information received from ATF Memphis as a part of this investigation, Willie Jr. was a member of the Grape Street Crips, a violent street gang.
According to information obtained as a part of this three-year investigation, methamphetamine distributors in the different states including members and associates of the Grape Street Crips would contact Willie Jr. and place orders for methamphetamine to be shipped to them.
Willie Jr. would provide how to make the payments using various methods including wire transfers, peer-to-peer payment software, and national banks (deposited in one state and withdrawn by a different person in California) to avoid detection.
Willie Jr. had at least nine people in California receiving drug proceeds from other states; those proceeds were then funneled to Willie Jr.
On October 24, 2022, Tanna Nash was sentenced to 84 months in federal prison for Conspiracy to possess with intent to distribute and distribute 500 grams or more of a substance containing methamphetamine and Distribution of more than 500 grams or more of a substance containing methamphetamine.
This is part of Operation Fighting Jellyfish, 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.
Operation “Fighting Jellyfish” was also recognized for a Special Achievement Award by the North Carolina Gang Investigators Association.
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 (Wilmington, North Carolina, Memphis, Tennessee and California), Homeland Security Investigations (Tampa (B.E.S.T. Unit) and California), Drug Enforcement Administration (California, North Carolina, Missouri and Ohio), the United States Marshal Service, the Craven, Duplin and Onslow County Sheriffs’ Offices and the Kinston, Goldsboro and New Bern Police Departments and the Los Angeles Police Department investigated the case and Assistant U.S. Attorney Timothy Severo 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. 4:21-cr-00021-FL-1.
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Ayden Man Sentenced to 110 Months for Firearm OffenseRead the Press Release
NEW BERN, N.C. – An Ayden man was sentenced today to 110 months in prison for possession of a firearm by a convicted felon. On October 12, 2021, Hia-Keem Don’ae Rice pled guilty to the charge. According to court documents, on January 10, 2019, officers with the Greenville Police Department conducted a traffic stop on a vehicle driven by Rice. When asked to step out of the vehicle, Rice sped away. Officers saw Rice throw a bag out of the car window. After Rice struck another vehicle at an intersection, the chase was cancelled for safety reasons. Officers recovered the bag Rice threw from the window, which contained a loaded .223 caliber semi-automatic pistol with a large capacity magazine, ammunition, 28 grams of marijuana, Rice’s wallet and identification card.
According to evidence presented at sentencing, Rice was also involved in a June 23, 2019 incident. Kinston Police Department officers responded to a call that Rice and another individual brandished firearms at a McDonald’s. Rice was driving when the vehicle was located and stopped. A safety search resulted in the seizure of a .380 caliber pistol and a .45 caliber pistol, both of which were found under the driver’s seat.
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), Greenville Police Department and Kinston Police Department investigated the case. Assistant U.S. Attorney Bryan Stephany prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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-00041-FL.
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Jury Convicts Wendell Man of Armed RobberiesRead the Press Release
RALEIGH, N.C. – A federal jury convicted Lionel Robinson, 43, of Wendell, North Carolina for two counts of Hobbs Act robbery, two counts of using a firearm during a crime of violence, and possession of ammunition by a convicted felon. Robinson faces up to life in prison at sentencing which is scheduled for January of 2023.
“This conviction is a result of the coordinated collaboration of multiple local law enforcement agencies working together with their federal partners to take a dangerous criminal off the street,” said U.S. Attorney Michael Easley. “I am proud of the work of the investigative team to bring this defendant to justice.”
From January 2019 until March 2019, an armed robber committed several robberies throughout North Carolina. The robber, sometimes with an accomplice, targeted Aldi stores in Lexington, Rocky Mount, Fayetteville, Winterville, Indian Trail, and Kernersville. The robber would ring the back doorbell to the Aldi pretending to be a delivery driver. When an employee would answer the door, the robber would force his way into the business, holding the employee at gunpoint. During each robbery, the suspect was in full disguise, which included masks, gloves, and reflective vests. During the investigation, law enforcement identified Lionel Robinson as a potential suspect and executed a search warrant at his residence on May 7, 2019. During the search, law enforcement recovered evidence relevant to the robbery investigations, and they also recovered a large quantity of ammunition. Lionel Robinson is a convicted felon and armed career criminal who is prohibited from possessing ammunition.
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 jury’s verdict. The Rocky Mount Police Department, Fayetteville Police Department, Greenville Police Department, Lexington Police Department, Kernersville Police Department, Union County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorneys Chad Rhoades and Yasir Sadat prosecuted and tried 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-00017-BO-1.
Former Raleigh Investment Advisor Found Guilty in Healthcare Fraud that Targeted the Elderly and DisabledRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Raleigh man on charges of Conspiracy to Commit Health Care Fraud, Healthcare Fraud, Wire Fraud, and Aggravated Identity Theft on October 19, 2022. According to court records and evidence presented at trial, Furman Alexander Ford, 52 years old, and his co-conspirator Jimmy Guess, who pled guilty on September 16, 2020 to healthcare fraud, conspired in a scheme to defraud Medicare by submitting false claims to Medicare for mental health services that were never provided to Medicare beneficiaries. According to witness testimony and evidence presented at trial, Ford and Guess submitted over 5,000 claims to Medicare, totaling approximately $534,438, for mental health services allegedly provided to approximately 145 beneficiaries between October 2018 and February 2020. Defendant executed several fraud schemes to obtain the beneficiaries’ Medicare information. In one scheme, Ford’s company offered Electronic Health Records conversion and teletherapy counseling to assisted living homes for the elderly and disabled. In another scheme, Ford’s company offered free food in exchange for the Medicare information of low-income elderly parishioners at churches in Bladen County, and by cold calling unsuspecting victims offering telehealth services.
U.S. Attorney Easley stated: “The defendant in this case preyed upon the most vulnerable in our society - the elderly, the poor, and the disabled. We will continue to work tirelessly to bring such offenders to justice.”
"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.”
Ford faces up to 52 years in prison when sentenced during Judge Dever’s January 2023 term of court.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict. The Federal Bureau of Investigation (FBI) and the Department of Health and Human Services – Office of Inspector General (HHS-OIG) are investigating the case and Assistant U.S. Attorneys William Gilmore and Ethan Ontjes 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-00448-D-1.
Fayetteville Woman Sentenced to 90 Months for Kidnapping OffenseRead the Press Release
WILMINGTON, N.C. – A Fayetteville woman was sentenced today to 90 months in prison for her role in a December 2018 kidnapping conspiracy. On April 8, 2021, Merianda Gray pled guilty to the charge. She was also ordered to serve 5 years of supervised release and to pay $2,000.00 in restitution.
According to court documents, in December 2018, Gray and two co-defendants, Yomere Juan Busbee and James Calvin McEachern, Jr., held three adult victims, and a two-year-old child in a hotel room against their will for several hours after Busbee, a violent pimp and drug dealer, believed he was missing several hundred dollars and accused the victims of stealing it. During the incident Busbee, McEachern, and Gray threatened the victims and did not allow them to leave. Several of the victims were physically and sexually assaulted and tased. Eventually, one of the victims was able to get a message to a family member who called authorities. Busbee and McEachern fled after learning authorities were on the way, and three of the victims were able to escape. Officers with Fayetteville Police Department were able to retrieve the final victim from the room without incident. Co-defendant McEachern previously pled guilty to one count of conspiracy to commit kidnapping and is awaiting sentencing. Co-defendant Busbee was charged with five counts: conspiracy to commit kidnapping, kidnapping, including of a minor, conspiracy to distribute or possess with the intent to distribute heroin and cocaine base (crack), possession of a firearm in furtherance of a drug trafficking offense, and felon in possession of a firearm. In September 2022, a jury found Busbee guilty of all counts after a three-day trial, and sentencing is pending.
Michael 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 Federal Bureau of Investigation and the Fayetteville Police Department led the investigation. Former Assistant U.S. Attorney Erin Blondel and Assistant U.S. Attorney Bryan 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. 5:20-CR-00393-M.
Jacksonville Heroin and Fentanyl Trafficker Sentenced to More Than 13 Years in Federal CourtRead the Press Release
RALEIGH, N.C. – A Jacksonville man was sentenced today to 164 months in prison for trafficking heroin and fentanyl from September 2020, through January 2021. On June 8, 2022, Steven Rolle, also known as “Bank Rolle” pled guilty to two counts of heroin and fentanyl trafficking. According to court documents and other information presented in court, Rolle, who has a prior federal conviction for trafficking in heroin, two assault on a female convictions, and an armed robbery conviction, began trafficking in large amounts of fentanyl less than a year after completing his federal supervised release.
At sentencing, U.S. District Judge Terrence W. Boyle found that Rolle was responsible for selling at least 172 grams of fentanyl and 27 grams of heroin, maintained a premises for manufacturing or distribution of the drugs, possessed a firearm in connection with his drug trafficking operations, and attempted to obstruct the Government’s investigation by intimidating a witness through Facebook posts. After Rolle completes his federal prison sentence, he will be on supervised release for 48 months.
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 Jacksonville Police Department, the Onslow County Sheriff’s Office, and the ATF Wilmington Resident Office investigated the case and Assistant U.S. Attorney Dennis M. Duffy 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-00018-BO-1.
Gang Member Recently Released from Prison for Murder Receives 7 Years in Federal Prison for Selling MethamphetamineRead the Press Release
RALEIGH, N.C. – Anthony Jackson, 32, of Wilmington, was sentenced to 84 months in prison for distribution of a quantity of methamphetamine. Jackson was released from North Carolina State prison in January 2021 after serving an approximately 12-year sentence for Second Degree Murder. According to the evidence, on November 2, 2021, Jackson and another person arrived at a location in Brunswick County where Jackson sold an undercover ATF agent 27 grams of actual methamphetamine. Following the sale, law enforcement received information that Jackson had driven to the deal with a semi-automatic handgun in the center console of his car.
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 launderers, 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, Drug Enforcement Administration, the New Hanover and Brunswick County Sheriffs’ Offices investigated the case and Assistant U.S. Attorneys Gabe Diaz and Timothy Severo 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-00039-BO-1.
Winston-Salem Man Sentenced to 151 Months for Trafficking MethRead the Press Release
RALEIGH, N.C. – Israel Ramos Ponce, 24, of Winston Salem was sentenced to yesterday 151 months in prison for trafficking methamphetamine. On May 18, Ponce pleaded guilty to Conspiracy to Distribute 50 grams or more of Methamphetamine and Distribution of 50 grams or more of Methamphetamine.
According to court documents and information presented at the sentencing hearing, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Wayne County Sheriff’s Office, and the Winston-Salem Police Department received information that Ponce was part of a large-scale drug trafficking organization in 2018. The organization operated in Winston-Salem, and it distributed significant quantities of crystal methamphetamine to the Goldsboro area. During the investigation, law enforcement learned that Ponce was a courier who assisted co-defendant Kelvin Vincente Noyola, a/k/a “Tripp,” in the distribution of significant quantities of methamphetamine to customers of the organization. Over the course of the conspiracy, Ponce was responsible for assisting in the distribution of at least 933.5 grams of crystal methamphetamine.
Co-defendant, Kelvin Vicente Noyola, a/k/a “Tripp,” was also charged and convicted in this investigation. Noyola pled guilty on July 25, 2022, to Conspiracy to Distribute and Possess With Intent to Distribute 50 grams or more of Methamphetamine and Distribution of 50 grams or more of Methamphetamine, aiding and abetting. Noyola’s sentencing is pending.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Court Judge James C. Dever II. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Wayne County Sheriff’s Office, and the Winston-Salem Police Department investigated the case and Assistant U.S. Attorney Jennifer C. Nucci 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 number 5:22-CR-00010-D.
Wake County Man Sentenced to more than 17 Years in Prison for Child Pornography ChargesRead the Press Release
RALEIGH, N.C. – A Wake County man was sentenced yesterday to 210 months imprisonment followed by 20 years of supervised release for transporting and possessing child pornography. Spencer Charles Thomas Crocker, 23, of Cary, North Carolina pleaded guilty on February 16, 2022 to the charges.
According to court documents and other information presented in court, The National Center for Missing and Exploited Children received twelve Cyber Tips regarding the uploading of child pornography to Google accounts. The IP address was being leased to Crocker’s father with an associated address in Cary. Other information included with the Cyber Tips led law enforcement to believe the person uploading the child sexual abuse material was Crocker.
Law enforcement received a search warrant for the Google account associated with the Cyber Tips. Within the Google account, they found more than 2,000 images and videos of child sexual abuse material. They identified the account belonged to Crocker by photos of himself and various receipts for online purchases with his information included within that account.
Based on evidence from the Google account, law enforcement executed a search warrant at Crocker’s residence. Crocker was present when the search warrant was executed and admitted he was intentionally seeking out child pornography on the dark web. Law enforcement learned Crocker had Mega, Dropbox and Microsoft OneDrive accounts and executed search warrants for content of all the accounts. They discovered over 4,500 additional images and videos of child sexual abuse material in those accounts.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. U.S. District Judge James C. Dever III presided over the sentencing. Cary Police Department and the Department of Homeland Security 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. 5:21-CR-00429-D.
Wilmington Felon Receives Six Years in Prison for Gun OffenseRead the Press Release
NEW BERN, N.C. – A Wilmington man was sentenced today to 72 months in prison for illegal firearm possession. On June 24, 2022, Quemar Deshawn Wooten, age 35, pleaded guilty to the Felon in Possession of a Firearm.
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.
Hines pleaded guilty to firearms charges on August 12, 2022 and is awaiting sentencing.
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 Wilmington Police Department, and the New Hanover Sheriff’s Department investigated the case and Special Assistant U.S. Attorney William Van Trigt prosecuted the case. 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.
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Armed Wilmington Drug Trafficker Sentenced to 12 Years in PrisonRead the Press Release
RALEIGH, N.C. – Massimo Campana, 31, of Wilmington, was sentenced last week to 144 months in prison for armed drug trafficking. On May 25, 2022, Campana pleaded guilty to Possession with Intent to Distribute a Quantity of a Substance containing Methamphetamine and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. The investigation uncovered that from August 2021 until the time of his arrest, Campana took part in a conspiracy that was responsible for the distribution of more than 3 kilograms of methamphetamine. Campana was on federal supervised release at the time he committed these offenses.
“This is yet another example of the collaboration between federal, state and local law enforcement to disrupt the drug trafficking organizations that are engaged in violence in our communities,” said U.S. Attorney Michael Easley. “We are successfully investigating and prosecuting these cases to put violent criminals behind bars.”
“Fighting the threat of illegal firearms and dangerous narcotics is always a joint effort,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Bennie Mims. “ATF’s work with our local law enforcement partners, along with our U.S. Attorney, continues to take these threats out of our communities and better public safety.”
“I am very proud of the men and women of the Wilmington Police Department for making this arrest and getting this violent criminal off the streets. I also would like to thank the United States Attorney’s Office and our partner agencies both local, state, and federal who work with us consistently to put these individuals behind bars. We are committed to reducing violence within our community and will continue to work tirelessly to get drugs off of our streets to create a safe environment for all,” said Wilmington Police Chief Donny Williams.
According to court documents and other evidence presented in court, on September 15, 2021, an ATF undercover agent made a controlled purchase of an ounce of methamphetamine from Campana at a business in Brunswick County. During the deal Campana bragged about the potency of his methamphetamine.
On October 20, 2021, a Wilmington Police Officer observed Campana driving a car with a fictious tag leaving a hotel on Market Street. The officer attempted to stop the car. Campana refused to stop and traveled at speeds in excess of 70 miles an hour on the city streets in an attempt to elude law enforcement. When law enforcement finally boxed in Capana at the intersection of Wrightsville and South College Road, Campana put his car in reverse and rammed a police vehicle. An officer had to break the driver side window to remove Campana from his car at gun point as he attempted to flee the scene. During of a search of Campana, officers found a quantity of methamphetamine and a loaded .380 caliber handgun.
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 Terrence W. Boyle. The Bureau of Alcohol, Tobacco and Firearms, Drug Enforcement Administration, the New Hanover and Brunswick County Sheriffs’ Offices and the Wilmington Police Department investigated the case and Assistant U.S. Attorney Gabe Diaz and Timothy Severo 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-00027-BO.
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Rocky Mount Man Pleads Guilty to Federal Firearm Charges After Shooting into Multiple Homes and VehiclesRead the Press Release
NEW BERN, N.C. – Jaquan Raqueze Harris, 27, man pleaded guilty today to Possession of a Firearm by a Convicted Felon. For this charge, Harris faces up to ten (10) years’ imprisonment. Harris is from Rocky Mount, North Carolina.
According to information presented in court and court documents, Harris illegally possessed a firearm when he shot indiscriminately into multiple homes along Parkridge Road and Walbrook Court, in Rocky Mount. On May 19, 2021, the Rocky Mount Police Department responded to a Shots Fired call at the corner of the 1700 block of Parkridge Road. Witnesses on scene advised they heard between 20 and 30 gunshots in a rapid succession late at night. Multiple residents on the block had projectiles strike and enter their homes and vehicles. Officers recovered over 25 spent shell casings and a semi-automatic rifle at the crime scene. Surveillance footage from a resident’s home security system captured Harris behind the home and armed with a black-in-color semi-automatic rifle. Harris is observed yelling and firing his rifle indiscriminately before fleeing the scene on foot and discarding the rifle. Rocky Mount Police arrested Harris the next day. Ballistics testing confirmed the spent shell casings from the crime scene matched the rifle Harris left at the crime scene. Harris was a convicted felon at the time and was prohibited from possessing firearms.
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. Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. Magistrate Judge Robert B. Jones, Jr. accepted the plea. The Rocky Mount Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives are investigating the case and Assistant U.S. Attorney Aakash Singh 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-120-FL.
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Rocky Mount Man Faces 10 Years in Prison after Pleading Guilty to Drug and Firearm ChargesRead the Press Release
NEW BERN, N.C. – Kelvin Earl Pittman, 46, pleaded guilty to drug trafficking and firearm charges. For these charges, Pittman faces a mandatory sentence of ten (10) years’ imprisonment. Pittman is from Rocky Mount, North Carolina.
According to information presented in court and court documents, Pittman conspired with others to sell guns and cocaine base (crack) illegally in Rocky Mount between August 2020 and January 2021. The Nash County Sheriff’s Office’s investigation captured Pittman on video conducting multiple drug and firearm sales from his residence. Pittman held himself out as a dealer of firearms and provided discounts to buyers if they purchased drugs and firearms together. In total, the Sheriff’s Office seized over an ounce of cocaine base (crack) and four (4) firearms from Pittman. Pittman was a convicted felon at the time and was prohibited from possessing firearms.
Pittman pleaded guilty to Conspiracy to Distribute and Possess with the Intent to Distribute 28 Grams or More of Cocaine Base (Crack), Distribution of a Quantity of Cocaine Base (Crack), Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Possession of Firearm by a Convicted Felon.
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. Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. Magistrate Judge Robert B. Jones, Jr. accepted the plea. The Nash County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives are investigating the case and Assistant U.S. Attorney Aakash Singh 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. 5:21-CR-71-FL.
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Red Springs Pharmacy Owner Pleads Guilty in Healthcare Fraud SchemeRead the Press Release
NEW BERN, N.C. – James Craig Bell, 63, pleaded guilty today to conspiracy to defraud Medicare, North Carolina Medicaid, and private health insurers through his pharmacy in Red Springs that operated under the name Townsend’s Pharmacy.
“This defendant lined his own pockets with money intended to provide vital prescription drugs for the poor and disadvantaged,” said U.S. Attorney Michael Easley. “We will continue to investigate and prosecute shady schemes like this.”
“Submitting false and excessive claims to Medicare and Medicaid undermines the integrity of federal health care programs and wastes valuable taxpayer dollars,” said Tamala E. Miles, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “HHS-OIG works tirelessly along with our law enforcement partners to hold accountable perpetrators of federal health care fraud.”
“Medications are expensive enough without pharmacy owners defrauding Medicaid and ripping off taxpayers,” said Attorney General Josh Stein. “These resources are meant to help people get the care and prescriptions they need. I’m grateful for U.S. Attorney Easley and his office’s partnership with my Medicaid Investigations team to hold accountable health care providers who waste these resources.”
According to the criminal information and evidence summarized in Court, beginning as early as 2006 through July 2017, Bell, acting through Townsend’s Pharmacy, billed Medicare, Medicaid, and various private health plans for prescription drugs that were never actually dispensed by the pharmacy. Bell conspired with his employee, Melisha West, 51, of Raleigh. West began independently running the pharmacy’s operations while Bell continued to knowingly profit from the fraudulent billing practices. West pleaded guilty to Healthcare Fraud in January 2022 for her role in the scheme and her sentencing hearing is set for the January 3, 2023 term of court. Bell had trained West and other employees on how to bill health care benefit plans for drugs that were not authorized or dispensed. Bell also trained employees to falsely reauthorize a previously existing prescription from a licensed medical professional, and, how to falsely bill health care benefit programs as though a drug had been dispensed.
Bell pleaded guilty to Conspiracy to Commit Healthcare Fraud. He faces up to 10 years in prison and a potential fine. Sentencing before United States District Judge Louise W. Flanagan is scheduled to occur early next year.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after United States Magistrate Judge Robert Jones accepted the plea. The United States Department of Health and Human Services Office of the Inspector General and the North Carolina Medicaid Criminal Investigation Unit are investigating the case, and Assistant U.S. Attorneys William M. Gilmore 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. 7:22-cr-107-FL.
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