Eastern District of North Carolina
Press releases recorded for this federal judicial district.
Mebane Man Convicted of Possession of a Firearm by a Convicted Felon for a Second TimeRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Mebane man yesterday on charges of Possession of a Firearm by a Convicted Felon.
According to court records and evidence presented at trial, Antonio Kortez Turner, 32, was indicted on November 20, 2019. On March 27, 2019, at approximately 1:45pm, Raleigh Police Department (RPD) Officers were conducting a security check of the parking lot at 500 W. Morgan Street, one block from the Ugly Monkey Bar. Officers located a black Honda Accord underneath a parking lot light and saw a firearm tucked between the passenger seat and the passenger door. After searching the vehicle registration, it was determined that the registered owner had the same address as Antonio Turner, a federally convicted felon who had previously been convicted in federal court for possession of a firearm by a convicted felon and distribution of cocaine base (crack). Officers also learned that Turner was on federal supervised release out of the Middle District of North Carolina for possession of a firearm by a convicted felon and distribution of cocaine.
Officers began surveillance on the parking lot and observed Turner enter the driver's seat and another man enter the passenger seat of the Honda Accord. RPD Officers approached the vehicle and observed Turner waving a firearm with an extended magazine outside the driver's side window. Officers gave verbal commands for Turner to drop the firearm and put his hands in the air. Turner instead attempted to conceal the firearm beneath the passenger's leg inside the Honda Accord. The passenger attempted to conceal the firearm under the passenger seat.
Turner faces up to 120 months imprisonment and 3 years of supervised release when he is sentenced at a later date.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle accepted the verdict. The Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) and the Raleigh Police Department investigated the case and Assistant U.S. Attorneys Daniel Smith and David Fitzgerald 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-00464-BO-1.
Illegal Alien Sentenced to 44 Months in Federal Prison for Possession of a FirearmRead the Press Release
RALEIGH, N.C. – The United States Attorney’s Office for the Eastern District of North Carolina announced that today, in federal court, Silvano Dominguez-Torres, age 32, a citizen of Mexico residing in Wake County, North Carolina, illegally present in the United States, was sentenced by United States District Judge Terrence W. Boyle to 44 months imprisonment following a guilty plea to unlawful and illegal alien in possession of a firearm.
According to an affidavit filed in support of a criminal complaint, Dominguez-Torres, illegally entered the United States without inspection at an unknown place and date. Thereafter, according to the affidavit, Dominguez-Torres was deported from the United States and reentered without permission as follows:
- On March 13, 2014, he was deported to Mexico at Laredo, Texas and reentered the United States thereafter without permission.
- On March 26, 2014, he was deported to Mexico at Brownsville, Texas and reentered the United States thereafter without permission.
- On September 18, 2014, he was deported to Mexico at Laredo, Texas and reentered the United States thereafter without permission.
- On May 3, 2016, he was deported to Mexico at El Paso, Texas and reentered the United States thereafter without permission.
- On October 12, 2017, he was deported to Mexico at El Paso, Texas and reentered the United States thereafter without permission.
Additionally, according to the affidavit, on March 5, 2019, Dominguez-Torres was arrested in Wake County, North Carolina by local law enforcement.
According to court records and information provided in court, on July 26, 2020, a traffic stop was conducted by North Carolina State Highway Patrol in Wake County, North Carolina, on a vehicle driven by Dominguez-Torres. Dominguez-Torres was suspected of driving while impaired. Dominguez-Torres attempted to flee the trooper on foot and resisted arrest for over 10 minutes. In addition, Dominguez-Torres bit the trooper on his hand to avoid being handcuffed. Dominguez-Torres was subsequently taken into custody. The trooper had to seek a medical evaluation. A search of Dominguez-Torres’s vehicle revealed a .380 caliber handgun located on the passenger side floor. The firearm was reported stolen. Fingerprints submitted to DHS and FBI databases confirmed Dominguez-Torres’s identity as a previously deported alien. Dominguez-Torres was charged with illegal reentry of a deported alien via criminal complaint on July 30, 2020, and on September 2, 2020, he was indicted for illegal reentry and unlawful and illegal alien in possession of a firearm. He pled guilty on November 16, 2020.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. Agents with ICE’s Homeland Security Investigations and Enforcement and Removal Operations, in conjunction with the North Carolina State Highway Patrol, investigated 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 Nos. 5:20-cr-00376-BO and 5:20-mj-1789-JG.
- On March 13, 2014, he was deported to Mexico at Laredo, Texas and reentered the United States thereafter without permission.
Fayetteville Woman Arrested for Multi-Million Dollar Fraud SchemesRead the Press Release
RALEIGH, N.C. – A Fayetteville woman was arrested and was detained pending her trial in federal court today on charges of wire fraud and laundering the proceeds of government contract fraud scams that targeted the United States Department of Defense (DoD) and businesses in the Eastern District of North Carolina.
According to court documents, from 2011 to 2020, Stephanie Dianna Elliott, aka “Stephanie Wilson,” aka “Stephanie Moore,” aka “Stephanie Russell,” aka “Stephanie Hanchett,” aka “Vicki Marsh,” aka “Monica Allen,” aka “Melissa Standford,” aka “Jennifer Taylor,” aka “Heidi Litchford,” aka “Sandy Morehead,” aka “Randy Morehead” aka “Katie Jones,” aka “Sharon Mitchell,” aka “Sharon Miller,” aka “Sarah James,” and aka “Janet Harrington,” 45, used aliases and more than a dozen business entities to obtain more than 1,000 federal defense contracts valued at more than $2.2 million. According to the allegations in the indictment, Elliott defrauded the Department of Defense by obtaining contract payments after falsely certifying that she had shipped supplies to the U.S. military, when, in fact, the goods were not shipped. It is alleged that Elliott and/or businesses under her control were debarred from federal contracting on four occasions. Elliott allegedly circumvented the terms of her debarments by using aliases and various business names to continue bidding on federal contracts.
The indictment also alleges that Elliott executed fraud schemes in connection with contracts with the State of North Carolina and other state governments. It is alleged that Elliott bid on contracts to supply food products and other goods. The indictment alleges that, after winning the contracts, Elliott defrauded third party vendors by inducing them to deliver the goods to the state in satisfaction of Elliott’s contractual obligations. It is alleged that, in so doing, Elliott obtained payment for these contracts but failed to pay the victim vendors.
Elliott is charged with twenty-six counts of Wire Fraud and five counts of Money Laundering and faces a maximum penalty of 20 years in prison on each count if convicted.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The Defense Criminal Investigative Service and the General Services Administration, Office of Inspector General are investigating the case and Assistant U.S. Attorney Toby Lathan is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Whitakers Man Sentenced for Multiple Robberies in Eastern North CarolinaRead the Press Release
WILMINGTON, N.C. – A Whitakers man was sentenced yesterday to 78 months in prison for bank robbery and robbery of a Family Dollar store.
According to court documents, Christopher Bryan Shingleton, 43, pled guilty to robbing the First Bank located in Morehead City on June 6, 2019 and robbing the Family Dollar located in Havelock on June 15, 2019. During both robberies, Shingleton threatened employees by saying he had a gun and demanded money. Shingleton also agreed to pay restitution for two other robberies that he had committed in Jacksonville and Greenville. In total, Shingleton was ordered to pay $4,910 in restitution.
G. Norman Acker, III, Acting 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 Wilmington Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Jacksonville Police Department, the Morehead City Police Department, the Havelock Police Department, and the Greenville Police Department investigated the case and Assistant U.S. Attorney John Parris prosecuted the case with the assistance of the Onslow County District Attorney’s Office, the Craven and Carteret Counties District Attorney’s Office, and the Pitt County District Attorney’s Office.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00165-M.
Duplin County Methamphetamine Trafficker Receives More Than 11 Years in Federal PrisonRead the Press Release
WILMINGTON, NC - Jason Hyland, 39, of Duplin County, was sentenced yesterday to 134 months in prison for Conspiracy to possess with the intent to distribute and distribute 500 grams or more of a mixture and substance containing methamphetamine and possession with intent to distribute 500 grams or more of a mixture and substance containing methamphetamine.
According to court documents and evidence presented in court, on June 30, 2020, Drug Enforcement Administration (DEA) agents working with Duplin County Narcotics Detectives received information that Hyland and Ashely Shakelford were traveling to Atlanta, Georgia to pick up two pounds of methamphetamine and then would be returning to Eastern North Carolina. On July 1, 2020, DEA agents assisted by Sampson County Sheriff’s Office Detectives stopped a car driven by Shakelford with Hyland as the sole passenger. The car was stopped in the Newton Grove area returning from Georgia. Detectives had a K-9 conduct a sniff of the car and the K-9 detected the odor of narcotics. Detectives searched the car and found more than a kilogram and half of methamphetamine. During the investigation, law enforcement discovered that between May and June 2020, Hyland made approximately 8 trips to Georgia to pick up methamphetamine. Hyland had distributed methamphetamine to Virginia and the Eastern District of North Carolina. Hyland was responsible for distributing approximately 6 kilograms of methamphetamine.
Shakelford was previously sentenced in federal court for her role and received 90 months imprisonment.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
G. Norman Acker, III, Acting 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 Drug Enforcement Administration, Bureau of Alcohol, Tobacco, and Firearms, the Craven, Duplin, New Hanover and Sampson County Sheriffs’ Offices and the Mount Olive 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. 7:20-cr-00130-M-1.
Wilmington Man Sentenced for Armed Robbery of Scotchman Convenience StoreRead the Press Release
WILMINGTON, N.C. –A Wilmington man was sentenced today to 100 months in prison for robbery affecting interstate commerce and possession of a firearm in furtherance of a crime of violence.
According to court documents and other evidence, Shaun Cedric Robinson, 22, and a co-defendant went to the Scotchman gas station and convenience store in Burgaw on June 4, 2019 and robbed the store. Robinson entered the store and held the clerk at gunpoint while he demanded money. The clerk opened the cash register and the co-defendant took the money out of the register. Robinson’s co-defendant had driven Robinson to the store to effectuate the robbery and was going to be the get-away driver. However, Robinson ran the opposite direction from where the car was parked, and his co-defendant drove away from the scene without him. The clerks were able to describe the car that fled the area and officers with the Burgaw Police Department were able to locate the car very shortly after the robbery. Robinson’s co-defendant was with the car and was detained for questioning. Robinson was found a short time after the robbery walking within 3 blocks of the Scotchman. Robinson was wearing clothing consistent with the robber and attempted to flee from law enforcement when they approached him. In addition, Robinson had money from the store on his person as well as the firearm used during the robbery. The firearm belonged to his co-defendant’s sister. Both men were transported to the Burgaw Police Department. Robinson once again fled from law enforcement but was found a short time later. Robinson gave a statement to law enforcement wherein he denied participating in the robbery. He claimed another person had done the robbery. When law enforcement confronted him about his clothing being consistent with the clothing worn by the robber, Robinson claimed he let the robber wear his pants and after the robbery Robinson took the pants back from the real robber and took the firearm from him. Despite his initial claims of innocence, Robinson ultimately pled guilty on November 4, 2020 and was sentenced today.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Burgaw Police Department investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00080-M.
Former Ft. Bragg Private Sentenced to More Than 12 Years After Taking 12-Year-Old “Girlfriend” Across State Lines in Fake KidnappingRead the Press Release
NEW BERN, N.C. – A South Carolina man was sentenced today to 151 months in prison for transportation of a minor with intent to engage in criminal sexual activity.
According to court documents and statements made during hearings, on the morning of October 21, 2018, a New Bern woman found that her 12-year-old granddaughter was missing from the child’s bedroom. The window was open, and a hand-written ransom note demanded $20,000 for her return. Investigators found mulch from a flower bed on the granddaughter’s bed and smudges on the window but no sign of forced entry. They reviewed the granddaughter’s Facebook account and found a page that identified the defendant James Murdoch Peele as a boyfriend.
The Federal Bureau of Investigation (FBI) determined that Peele was enlisted in the US Army and stationed at Ft. Bragg. They traced him to a barracks room, where the same afternoon they found Peele together with the minor victim. A forensic examination confirmed that Peele had recently had sexual intercourse with the minor.
Law enforcement interviewed a friend of Peele’s, also a soldier stationed at Ft. Bragg. The friend described how a week before the apparent kidnapping, Peele had asked for a ride to his “girlfriend’s” house in New Bern. Peele had shown a photo of the victim and claimed that she was 18 years old. When they arrived, however, Peele instructed the friend to park at a vacant neighboring house, and Peele entered the home through a window. The friend also entered the room and became concerned about the girl’s age after noticing childlike décor, including middle school photographs and a hamster. The friend explained to investigators that he had become disgusted and left the room when Peele and the minor began kissing.
Investigators determined that on the morning of October 21, after leaving New Bern, Peele drove the minor victim to his parents’ home in South Carolina. During a brief stay, he introduced the 12-year-old to his parents as his girlfriend and claimed that she worked in a sewing shop. They stayed for less than a half-hour before Peele’s sergeant called and Peele had to return to base.
Back at Fort Bragg, Peele’s barracks roommate was present when Peele arrived with the minor shortly before noon. As the roommate later recounted to investigators, the minor stayed in the room as Peele left to meet his sergeant. Later, Peele returned and asked his roommate to turn up his music, which the roommate understood to mean that Peele planned to have sex with the girl behind a sheet that had been hung across the room for privacy. The roommate left, and the FBI arrived soon after.
During a forensic interview, the minor victim stated that she and Peele had been involved in a sexual relationship. She had told Peele her true age, and he responded that age is just a number. She admitted that she had not been kidnapped but denied coming up with the idea to stage a kidnapping.
After his arrest, Peele made a videotaped confession. He admitted to having sexual intercourse with the minor victim. He also admitted to writing the ransom note, although he stated that the victim had asked to leave with him and had come up with the idea of staging a kidnapping. Peele claimed that he believed the victim was 18 years old, but he admitted that he saw her at a sleepover with friends who looked very young, including one girl whose age he had seen to be 12 years old.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Craven County Sheriff’s Office and Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorneys Jake D. Pugh and Erin Blondel 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-0096-FL.
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Wake Forest Investment Advisor Sentenced for Wire FraudRead the Press Release
WILMINGTON, N.C. – A Wake Forest, NC man was sentenced today to 135 months imprisonment for wire fraud and ordered to pay $6,040,965.00 in restitution.
According to court documents, Anthony Wayne March, 49 years old, operated the non-profit 501(c)(3) entity Asset Trader, located in Rolesville, NC, between 2012 to 2015. March represented that Asset Trader offered educational services to professionals and taxpayers in the area of exit planning. Asset Trader’s stated educational mission allowed it to obtain classification as a 28 U.S.C. § 501(c)(3) tax-exempt non-profit organization. Asset Trader used its §501(c)(3) tax-exempt status to solicit tax-deductible donations in exchange for charitable gift annuities (“CGAs”) and to recruit referral sources to obtain assets from potential donors. Through Asset Trader, March and his co-conspirators engaged in and executed what is commonly known as a “Ponzi” scheme to defraud investors by inducing them to invest with Asset Trader.
During the course of the scheme, March solicited at least 22 victims to invest over $8,100,000 in charitable gift annuities and other products offered by Asset Trader. March and Asset Trader sold these securities to victims as retirement or exit planning vehicles classified as donations to March’s § 501(c)(3) tax-exempt non-profit organization. March did not utilize any of the victim’s money for charitable purposes; rather, he spent the money on "Ponzi" payments, his own lavish lifestyle, and expenses of the scheme.
March pled guilty today to conspiracy to wire fraud on August 3, 2020.
G. Norman Acker, III, Acting 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 Internal Revenue Service Criminal Investigation Division (IRS-CI), and the North Carolina Secretary of State, Securities Division conducted the investigation in this matter. The Office of the U.S. Bankruptcy Administrator for the Eastern District of North Carolina provided substantial assistance. Assistant United States Attorney Ethan Ontjes, Special Assistant United States Attorney Brian Behr, and Special Assistant United States Attorney Kevin Harrington represent the United States.
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-383-H.
Robeson County Man Sentenced to 12 Years for Drug and Firearm PossessionRead the Press Release
RALEIGH, N.C. – A Maxton man was sentenced today to 144 months in prison for possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime.
On August 3, 2019, the Robeson County Sheriff’s Office responded to a community complaint regarding drug sales at a residence in Rowland, North Carolina. During the investigation, deputies observed Cody Zachary Locklear, 29, run out of the residence and attempt to discard a firearm and a bag containing distributable amounts of cocaine, crack, marijuana, and various narcotic pills. Deputies recovered the firearm and the controlled substances and took Locklear into custody.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Robeson County Sheriff’s Office 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. 7:20-CR-89-D.
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Duplin County Drug Trafficker Who Brandished a Firearm at Deputy Sentenced to 18 Years in PrisonRead the Press Release
RALEIGH, NC- Jorge Zapata Castro, 52, of Duplin County, was sentenced today to 216 months in prison for Possession with Intent to Distribute Five Grams or More of Methamphetamine, Brandishing a Firearm in Furtherance of a Drug Trafficking Crime and Possession of a Firearm by an Illegal Alien.
According to court documents and evidence presented in court, on July 22, 2019 a Duplin County Sheriff’s Deputy observed Zapata Castro leaving a known drug house. The deputy conducted a traffic stop after Zapata Castro crossed the center line multiple times in the area of North Carolina Highway 241 in Duplin County. Zapata Castro informed the deputy that he did not have a driver’s license. While the deputy was conducting his investigation, Zapata Castro fled at high rate of speed. During the chase that ensued, Zapata Castro leaned out of the window of his vehicle and pointed a Smith and Wesson .40 caliber handgun at the deputy. Then, Zapata Castro lost control and crashed his vehicle into a person’s yard at the intersection of Old NC 24 and Wagon Ford Road. Zapata Castro exited the vehicle and then pointed the Smith and Wesson at the deputy again before fleeing on foot. Additionally, Zapata Castro then stole a vehicle from a nearby residence from someone who was washing the car. Zapata Castro was ultimately apprehended in a bean field a short time later.
During a search of Zapata Castro deputies found a loaded handgun and methamphetamine. Detectives also searched the truck that Zapata Castro had wrecked and found 34 grams of methamphetamine and $1,550 in U.S. currency. Zapata Castro was illegally in the country at the time of his arrest and had been previously deported therefore he was prohibited from possessing the handgun.
The investigation was part of OCDETF Operation “Fighting Jellyfish”. An Organized Crime Drug Enforcement Task Force operation 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.
G. Norman Acker, III, Acting 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 Drug Enforcement Administration, Bureau of Alcohol, Tobacco Firearms and Explosives, Department of Homeland Security, and the Duplin County Sheriff’s Office 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. 7:19-cr-00130-D-1.
Corporate Officer Sentenced to Prison for Medicaid FraudRead the Press Release
NEW BERN, N.C. – A Greensboro woman was sentenced today to 37 months in prison and also ordered to make restitution in the amount of $ 213,927.55 to the North Carolina Medicaid program for Conspiracy to Commit Health Care Fraud.
According to court documents, Pamela Grace Faulkner, 60, was the sole officer of Skeen Services, Inc., which was a company with offices in Greensboro, Greenville, Lumberton, and Wilson, North Carolina. In 2013 and 2014, Faulkner’s co-conspirator, Renee Christine Borunda, submitted over 4,500 fraudulent claims to Medicaid which falsely represented that behavioral health services had been provided to over 190 North Carolinians when in fact the services had not been provided. Faulkner was aware that Borunda was submitting the false claims. They had agreed to split the monies from the fraudulent claims. Medicaid paid Skeen Services, Inc. approximately $213,927.55 for these false claims by electronically depositing the funds into an account over which Faulkner had control. Faulkner then paid Borunda approximately $144,000.
Borunda was previously sentenced on November 7, 2018, to 37 months in federal prison followed by 3 years of supervised release for Conspiracy to Commit Health Care Fraud in violation of 18 U.S.C. § 1349 and Aggravated Identity Theft in violation of 18 U.S.C. § 1028A.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan.
The North Carolina Department of Justice’s Medicaid Investigations Division (“MID”) and the Internal Revenue Service - Criminal Investigation investigated this case. Assistance was provided by the Office of Compliance and Program Integrity of the North Carolina Division of Health Benefits, EastPointe, Sandhills Center, and Trillium Health Resources. Assistant United States Attorney John Parris and Special Assistant United States Attorney Mike Heavner prosecuted the case.
The MID investigates and prosecutes health care providers that defraud the Medicaid program, patient abuse of Medicaid recipients, patient abuse of any patient in facilities that receive Medicaid funding, and misappropriation of any patients’ private funds in nursing homes that receive Medicaid funding. To report Medicaid fraud or patient abuse in North Carolina, call the MID at 919-881-2320.
The MID receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $6,160,252 for Federal fiscal year (FY) 2020. The remaining 25 percent, totaling $2,053,414 for FY 2020, is funded by the State of North Carolina.
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. 4:19-cr-00059-FL
Wilson Man Convicted of Gun Possession as a Convicted FelonRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Wilson man on Tuesday on charges of possession of a firearm by a convicted felon.
According to court records and evidence presented at trial, Terrance Anthony Moore, 35, possessed a firearm on July 8, 2018. Moore was seen by law enforcement standing on the side of the road in Wilson, raising and lowering the firearm in the direction of nearby businesses. Moore took the stand and testified, among other things, that he had a number of previous felony convictions, including two common law robberies and a drug distribution offense, within the previous ten years. He also testified that his nickname was “Trigger” due to his violent temper.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle accepted the verdict. The Wilson Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are investigating the case and Assistant U.S. Attorney Lucy Brown 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.5:19-cr-00164-BO.
Operation False Haven: Convicted Child Rapist Sentenced for Naturalization Fraud, Criminally Denaturalized and Judicially Ordered Removed from the United StatesRead the Press Release
RALEIGH, N.C. – The United States Attorney’s Office for the Eastern District of North Carolina announced that today, in federal court, J. Refugio Gomez-Juarez, age 51, a naturalized citizen of the United States, born in Mexico, residing in Franklin County, was sentenced by United States District Judge Terrence W. Boyle to 6 months imprisonment following a guilty plea to naturalization fraud. Moreover, Gomez-Juarez was criminally denaturalized as a United States citizen and ordered removed from the United States by the court.
According to the indictment, on September 1, 2010, after submitting an Application for Naturalization to U.S. Citizenship and Immigration Services, Gomez-Juarez made a false statement under oath during his naturalization interview. In response to the question “Have you ever committed a crime or offense for which you were not arrested?” he answered “No.”
On September 17, 2010, Gomez-Juarez was granted United States citizenship and issued a naturalization certificate which he subsequently used to fraudulently apply for and receive multiple U.S. passports.
On March 1, 2016, in the Superior Court of North Carolina in Franklin County, Gomez-Juarez was convicted of second-degree forcible rape for knowingly having vaginal intercourse with a mentally disabled child against her will. According to the judgment, the crime was committed on January 1, 2007, before he applied for naturalization. Gomez-Juarez was not arrested for the rape until 2011. Thus, immigration officials were not aware of the crime.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. Agents with ICE’s Enforcement and Removal Operations and Homeland Security Investigations, assigned to the Document Benefit Fraud Task Force, investigated the case as part of Operation False Haven. Operation False Haven is an ongoing initiative, in conjunction with the Department of Justice’s Office of Immigration Litigation, designed to identify and prosecute child molesters and other egregious felons who fraudulently obtained U.S. citizenship.
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. 5:20-cr-00345-BO.
Two Raleigh Men Pled Guilty to Bank FraudRead the Press Release
RALEIGH, N.C. –Rahne Cooper, age 31, and Darius Hinton, age 31, pled guilty to bank fraud before Magistrate Judge Robert T. Numbers, III, in federal District Court today.
Both men admitted using synthetic identities to obtain loans from financial institutions. A synthetic identity, often referred to as a CPN or credit privacy number, looks like a nine-digit social security number. Often, the CPN was actually issued by the Social Security Administration to a real individual. Individuals with poor credit scores use CPNs to build fresh credit by adding the CPN to their names and dates of birth. To enhance the credit worthiness, the new credit profile is added as authorized users on credit accounts belonging to individuals with good credit.
Cooper used a synthetic identity to finance the purchase of a car and Hinton used one to purchase John Deere lawn equipment from Quality Equipment. Each man faces a maximum penalty of 30 years’ in prison, a $1,000,000 fine, restitution and forfeiture.
Cooper and Hinton were charged along with Durham Attorney Tiffany Russell in a 26-count Indictment. Russell’s arraignment is scheduled for the May 17, 2021 term of court before District Judge James C. Dever III.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, Social Security Administration, and Raleigh Police Department have jointly investigated the case and Assistant U.S. Attorney Susan Menzer is prosecuting the case.
Raleigh Woman Pleads Guilty to Filing False Priority Mail Insurance ClaimsRead the Press Release
RALEIGH, N.C. – A Raleigh woman pleaded guilty today to Mail Fraud, in violation of Title 18, United States Code, Section 1341.
According to court documents, Jasmine Shyann Frederick, 32, of Raleigh, admitted to carrying out a scheme to profit from the filing of false Priority Mail insurance claims.
The Criminal Information, to which the defendant pled guilty, states that the United States Postal Service (USPS) insures Priority Mail packages up to $100. To qualify for payment, the addressee or sender must send proof of the cost or value of the lost or damaged item, either online or by mail. Applicants for insurance payments must certify the truthfulness of their submissions.
The Criminal Information further alleges that between December of 2017, and continuing to July of 2019, the defendant submitted and caused to be submitted hundreds of false insurance claims for Priority Mail packages shipped by the USPS. Using USPS.com accounts in her name, and that of her sister, the defendant uploaded stock pictures of allegedly lost or damaged merchandise. The defendant also supplied Priority Mail tracking numbers acquired online.
The Criminal Information further alleges that the USPS mailed numerous insurance claim checks to the defendant’s home in Raleigh. The defendant deposited these checks into her bank accounts or cashed them through her sister’s accounts. In total, the defendant negotiated and caused to be negotiated $38,614.74 in claim checks she received through the scheme.
Frederick pleaded guilty to Mail Fraud, in violation of Title 18, United States Code, Section 1341, and faces a up to 20 years in prison when sentenced in June of 2021.
G. Norman Acker, III, Acting 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. The United States Postal Inspection Service is investigating the case and Assistant U.S. Attorney William M. Gilmore 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-00080-D-1.
Mexican National Convicted at Trial After Attempting to Eat Memory Cards Containing Child PornographyRead the Press Release
RALEIGH, N.C. – A federal jury today convicted David Sierra Orozco, 31, a Mexican national and recent resident of Georgia, of possessing child pornography.
According to court records and evidence presented at trial, on July 25, 2017, members of the Harnett County Sheriff’s Office were observing traffic outside of Dunn city limits, when they spotted a Lexus whose registered owner had an expired license. They followed the Lexus, and after observing it twice drift across the center lane, conducted a traffic stop.
The driver identified himself as Orozco and presented a Mexican consular ID but no valid driver’s license. Officers noticed that Orozco appeared extremely nervous—he was sweating profusely despite the air conditioner on high and was shaking uncontrollably. They also noticed tool marks on the car’s instrument panel and that the cover was not flush with the dashboard. Recognizing this as signs of a possible hidden “trap” in the dashboard, officers called for a K-9 deputy. As the traffic stop proceeded, Orozco consented to a search, and the K-9 arrived and alerted to the car. Within a trap in the dashboard, officers found $111,252 in cash, wrapped in blocks within grocery bags.
While being processed into the Harnett County Jail on a charge of driving without a license, Orozco was searched. A folded up $100 bill was removed from his pocket, and as law enforcement unfolded it, several MicroSD memory cards fell out. Orozco lunged for the floor, picked up what appeared to be two memory cards, and put them in his mouth. Officers recovered one chewed half of a memory card from his mouth and three intact cards from the floor.
Law enforcement obtained a search warrant based on possible narcotics trafficking. But upon opening the first MicroSD memory card, they spotted what appeared to be child sexual abuse material, commonly referred to as child pornography. After securing a second search warrant, a full forensic review uncovered over 261 videos and 2 images of child pornography on one MicroSD memory card, another 14 videos on a second memory card, and 5 child pornography thumbnails on the defendant’s smart phone. Most files depicted children under 12 years of age.
Along with the child pornography, the forensic examiner found files linking the devices to Orozco. Two of the memory cards and the cell phone contained photographs that Orozco had taken of himself. The other card contained a photo of a car that an officer confirmed was the same make, model, and color as the Lexus that Orozco had been driving. Forensics further showed that Orozco had taken and sent one of the photos of himself using the same mobile application that had been used to collect the child pornography.
Orozco faces a maximum of 240 months in prison and is scheduled to be sentenced during the court’s June 21, 2021 term.
G. Norman Acker, III, Acting 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 Harnett County Sheriff’s Office and Department of Homeland Security have investigated the case, which Assistant U.S. Attorney Jake D. Pugh is prosecuting.
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-00095-D.
Man Pleads Guilty to Setting Fires to Raleigh Business During RiotsRead the Press Release
RALEIGH, N.C. – A Raleigh man pled guilty today to setting a fire inside a store in Raleigh after a demonstration over the death of George Floyd in Minneapolis, Minnesota.
Richard Rubalcava, of Raleigh was arrested on June 18, 2020, by special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and was charged by indictment with two counts of maliciously damaging or destroying, or attempting to damage or destroy, by means of fire or an explosive, any building or other real or personal property affecting interstate or foreign commerce.
According to the indictment, on May 30, 2020, at approximately 12:13a.m., a fire was discovered at the Dollar General Express located at 149 East Davie Street, Raleigh, after it had been looted by rioters. Video surveillance was obtained from the Dollar General Express. The video shows Rubalcava enter the business and place numerous items in a Dollar General Bag. Rubalcava leaves and re-enters the business numerous times. Each time Rubalcava enters the business, he would steal items from the store. Further video surveillance captured Rubalcava inside the Dollar General Express setting fire to miscellaneous items located on an aisle endcap. Rubalcava appears to exit the store after setting the fire.
Rubalcava faces a statutory mandatory minimum term of imprisonment of five years, a maximum potential penalty of 20 years in prison, and a maximum fine of $250,000.
G. Norman Acker, III, Acting 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 Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Daniel W. Smith 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. 5:20-CR-00341-FL
Husband and Wife Russian Nationals Plead Guilty to Bribery, Visa Fraud, Tax Charges, and Agree to Forfeit $5.9 MillionRead the Press Release
NEW BERN, N.C. – Leonid Teyf, 59, a Russian national formerly residing in Raleigh, North Carolina, pled guilty today to bribery of a public official, visa fraud, and false statements on a tax return. Tatiana Teyf, 43, pled guilty to a false statement in an immigration matter.
In December 2018, Teyf was charged in an indictment with the bribery, murder-for-hire, possession of a firearm with an obliterated serial number, harboring illegal aliens, and unlawful use of a visa procured through false claims. Teyf was also charged in a money laundering conspiracy with Tatiana Teyf and others, and several tax charges regarding the wrongful denial of the existence of overseas financial interests and the failure to file required forms in regard to the same overseas accounts.
The indictment alleged that between 2010 and 2012, Leonid Teyf received kickbacks of Russian government funds amounting to more than $150,000,000. The indictment additionally alleged that since December 2010, Leonid and Tatyana Teyf and others opened at least 70 financial accounts at four financial institutions in the names of themselves and businesses under their control and received an approximate total of $39,500,000 in 294 wire transfers. By December 2018, approximately $9 million of these funds remained in accounts within the United States and the funds were seized at that time.
The indictment further alleged Teyf knowingly used and possessed a U.S. immigrant visa which he had procured through false claims made on his I-140 application and that he and Tatiana Teyf had harbored and assisted other persons from Russia in coming to and remaining in the United States.
As otherwise alleged in publicly available documents filed in federal court by the Government, during the course of the investigation into the money laundering charges, Leonid Teyf came to believe that Tatiana Teyf was having an affair with another man. Leonid Teyf discussed with an FBI confidential source having the man murdered. Teyf also paid an employee with the United States Department of Homeland Security $10,000 to find the man and have him deported from the United States. When the deportation plan was taking a longer period of time than he expected, Leonid Teyf returned to the previously discussed murder-for-hire plan and paid the confidential source $25,000 to kill the man before the end of 2018. To assist in the commission of the murder, Leonid Teyf supplied the confidential source with a firearm on which the serial number had been removed.
Teyf entered a plea of guilty to violations of 18 U.S.C. § 201, the payment of the $10,000 bribery to the federal official, 18 U.S.C. § 1546, visa fraud, and 26 U.S.C. § 7206(1), filing a false tax return. Tatiana Teyf plead guilty to a separately filed Criminal Information, which charged a violation of 18 U.S.C. § 1015(a), making a false statement in an immigration document. Both agreed to forfeit assets in the total amount of $5,900,241 and Teyf agreed to forfeit the firearm that was provided to the confidential source. He also agreed to be judicially deported once his sentence is complete.
Pursuant to the plea, the Acting United States Attorney for the Eastern District of North Carolina agreed to dismiss the murder-for-hire, firearm, money laundering, harboring illegal aliens, and all but one of the tax charges against Teyf, and to seek a sentence of 60 months’ imprisonment for him. Pursuant to Tatiana Teyf’s plea to the charge in the Criminal Information, all charges against her in the Indictment will be dismissed and the government will not seek a term of imprisonment.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement, noting, “Attempts to subvert U.S. laws through lies and bribery cannot be tolerated. This is particularly true when such attempts are done with the intent of causing greater harm and this office stands ready to pursue these cases with every available tool. Thankfully, through the proactive work of our law enforcement partners, the violence desired was prevented.”
U.S. District Judge Louise W. Flanagan accepted the plea. The investigation of this case was conducted by agents of the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, Homeland Security Investigations, and the Raleigh Police Department.
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 5:18-cr-00452-FL.
Four Defendants Charged with Voter Registration FraudRead the Press Release
RALEIGH, N.C. – Federal criminal cases were unsealed today charging four defendants with making false claims of U.S. citizenship in order to register to vote in the 2016 general election.
The cases stem from an investigation led by the U.S. Attorney’s Office for the Eastern District of North Carolina that has resulted in charges against 24 defendants over the last 18 months. The charges include making false claims of U.S. citizenship in order to register to vote, naturalization fraud, and fraud and misuse of visas, permits, and other documents as it relates to the registration to vote, and false statements in immigration proceedings. Two defendants are charged with illegally voting in the 2016 general election.
Each defendant is charged individually and there are no charges of conspiracy.
The investigation of these cases was conducted by agents of Homeland Security Investigations under the Document and Benefit Fraud Task Force (DBFTF) in the Eastern District of North Carolina.
The U.S. Attorney’s Office would like to express its appreciation to the U.S. Department of Homeland Security for their support in the investigation.
Apex Man Sentenced to 109 Months Imprisonment for Bank Fraud ConspiracyRead the Press Release
NEW BERN, N.C. – An Apex man was sentenced today to 109 months in prison for his role in a bank fraud conspiracy that caused a total loss of over $800,000 to at least 22 financial institutions.
According to court documents, Jamal Mohammad Eleidy, Age 59, and others conspired to commit bank fraud against various financial institutions while Eleidy resided in the Eastern District of North Carolina and engaged in the United States naturalization process. Specifically, Eleidy and his co-conspirators defrauded various financial institutions by opening credit accounts using various synthetic identities, making charges to those accounts by using cash advances and other transactions, and allowing those accounts to remain delinquent with no intention to repay the outstanding debt. On the date of his naturalization ceremony, Eleidy used one of those synthetic identities to purchase gas for his travel to the ceremony. Eleidy’s sophisticated scheme spanned the course of four years and involved the establishment of shell companies, the rental of various properties, and the laundering of money from the synthetic identity accounts into those owned by Eleidy.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Federal Bureau of Investigation and United States Postal Inspection Service investigated the case. Assistant U.S. Attorney Banumathi Rangarajan and Special Assistant U.S. Attorney Tamika Moses 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-133-FL-1.
GPS Tracking Device Aids in Raleigh Man’s ProsecutionRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced today to 71 months in federal prison for robbing the BP Gas station located at 4330 Louisburg Road in Raleigh.
According to court documents, on December 30, 2019, Marvin Newell, 53 entered a BP Gas Station in Raleigh, North Carolina, and walked to the beer aisle. After he selected several bottles of alcohol, he approached the front counter and asked the clerk for some cigars. After the clerk scanned the merchandise, Newell inserted his credit card into the card reader as if he was going to pay, and then removed it and told the clerk to open the register drawer. Newell told the clerk again to open the drawer and pointed his finger at her through his shirt, as if he was holding a gun. Fearful that Newell had a gun, the clerk opened two drawers and gave the defendant $63 currency, as well as a hidden tracking device that was stuck between two bills. Newell then instructed the clerk to go with him to the back of the store, but the clerk refused. Newell exited the store with the $63 currency, as well as the merchandise, which was valued at approximately $19.
Law enforcement began to search for Newell and used the tracking device to ping his location. When officers located Newell and activated their blue lights, he failed to stop and began driving in the wrong direction on the street. Newell attempted to flee the area and eventually hit a curb, which disabled the vehicle axle. Newell then fled on foot from the officers. Newell was apprehended after a short chase. He opened his hand, which revealed a handful of currency (the currency stolen from the BP Gas Station), and stated, “that’s my money.” Law enforcement took control of the currency, as well as the hidden tracker.
G. Norman Acker, III, Acting 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 Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Daniel W. Smith 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-00316-D.
Subsequent Federal Conviction Earns Onslow County Man More Than 19 Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – Anthony Lemmonds, 53, of Onslow County, was sentenced today, to 235 months imprisonment for: (1) Conspiracy to Possess With Intent to Distribute and Distribute Five Hundred (500) Grams or More of Methamphetamine; (2) Distribution of Fifty (50) Grams or More of Methamphetamine; and (3), Possession With the Intent to Distribute Fifty (50) Grams or More of Methamphetamine. Lemmons pled guilty to these charges on June 9, 2020.
According to court documents, on March 29, 2019, the Duplin County Sheriff’s Office (DCSO) obtained information that Anthony Lemmonds was traveling to South Carolina to purchase crystal methamphetamine. The DCSO, operating in conjunction with the Onslow County Sheriff’s Office (OCSO), conducted a controlled purchase with Lemmonds utilizing a confidential informant.
On March 30, 2019, utilizing the same confidential informant as the previous day, another controlled purchase was conducted. The confidential informant obtained 86 grams of crystal methamphetamine and during that controlled purchase, Lemmonds informed the confidential informant that he brought back a pound of crystal methamphetamine the week prior.
On April 4, 2019, the confidential informant met with Lemmonds again, this time to obtain three ounces of methamphetamine. Lemmonds advised the confidential informant that he would have to travel to South Carolina again to obtain the methamphetamine. On the return trip from South Carolina on April 5, 2019, Lemmonds was surveilled by law enforcement and a traffic stop was conducted where officers witnessed Lemmonds throwing an item out of the car. Law enforcement recovered the sealed bag containing crystal methamphetamine in the area where Lemmonds threw the items out of the car. Additionally, law enforcement searched his car and found an additional 138 grams of methamphetamine, two digital scales and a ledger. Lemmonds confirmed that the ledger contained records detailing prior drug transactions. Between August 2018 and April 5, 2019, Lemmonds is attributed with trafficking more than 2.5 kilograms of methamphetamine.
Lemmonds prior criminal history includes the following: Possession of Cocaine (2004); Possession of Methamphetamine (2005); Possession of a Firearm by Felon and Possession of Methamphetamine (2017). In 2009, Lemmonds also has a previous federal conviction for Conspiracy to Possess With Intent to Distribute More than 500 Grams of Methamphetamine where he received a 91-month sentence.
The investigation was part of OCDETF Operation. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. This OCDETF focuses on a Multi-State Drug Trafficking Organization and Gang Activity that has been responsible for the distribution of large quantities of extremely pure methamphetamine throughout the United States.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing before U.S. District Judge Louise W. Flanagan. The Drug Enforcement Administration, the Duplin County Sheriff’s Office and the Onslow County Sheriff’s Office took part in the investigation. 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. 7:19-CR-182-FL.
Operation False Haven: Convicted Child Molester Sentenced for Passport Fraud, Civilly Denaturalized and Judicially Ordered Removed from the United StatesRead the Press Release
RALEIGH, N.C. – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, Saul David Aquino, age 44, a naturalized citizen of the United States, born in Argentina, residing in Franklin County, was sentenced by United States District Judge Louise W. Flanagan to five years of probation and ordered to pay a $3,000 fine following a guilty plea to passport fraud. Moreover, Aquino was civilly denaturalized as a United States citizen and ordered judicially removed from the United States.
According to an affidavit for a federal search warrant executed on March 4, 2020, Aquino was born in Argentina in 1976, and on August 4, 2003, he was granted permanent resident status in the United States.
On May 28, 2009, in Franklin County, North Carolina, Aquino completed, and submitted, an Application for Naturalization (Form N-400) to United States Citizenship and Immigration Services (USCIS). The Form N-400 contained a series of questions related to good moral character. Question 15 asked: “Have you ever committed a crime or offense for which you were not arrested?” Aquino answered “No” and signed the Form N-400 under penalty of perjury.
On August 26, 2009, Aquino was granted United States citizenship and was issued a naturalization certificate.
On June 8, 2015, in the Superior Court of North Carolina in Franklin County, Aquino was convicted of two counts of indecent liberties with a child, in violation of North Carolina General Statute § 14-202.1. Aquino was sentenced to a combined term of imprisonment of between 26 and 32 months and mandated to register as a sex offender. The offense date listed on the judgment was January 1, 2007, before he applied for naturalization.
Additionally, the affidavit stated that on August 26, 2009, in Franklin County, Aquino signed and submitted an application for a U.S. passport to the United States Department of State. As proof of citizenship and eligibility, AQUINO presented his fraudulently obtained naturalization certificate.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. Agents with ICE’s Enforcement and Removal Operations and Homeland Security Investigations, assigned to the Document Benefit Fraud Task Force, investigated the case as part of Operation False Haven. Operation False Haven is an ongoing initiative in conjunction with the Department of Justice’s Office of Immigration Litigation, designed to identify and prosecute child molesters and other egregious felons who fraudulently obtained U.S. citizenship.
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. 5:20-cr-00041-FL, Case No. 5:20-cv-00277-FL, and Case No. 5:20-mj-01224-JG-1.
Georgia Man Sentenced for Conspiring to Commit Marriage FraudRead the Press Release
RALEIGH, N.C. – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, Tojiddin Ghaibulloyev Rahimov, age 47, a naturalized citizen of the United States, born in Tajikistan, residing in Columbus, Georgia, was sentenced by United States District Judge Louise W. Flanagan to 8 months imprisonment following a guilty plea to conspiracy to commit marriage fraud.
The indictment alleges that Melissa Godshall and Robert Kennerley, who were romantically involved, were panhandling for money on the side of the road in Granville County, North Carolina. Rahimov approached them and asked Godshall if she would be willing to marry a foreign-born national for money. Rahimov introduced Godshall to Levan Lomtatidze, a citizen of the former Georgian Soviet Socialist Republic. Thereafter, Godshall agreed to engage in the marriage to Lomtatidze in exchange for $12,000, housing, and a vehicle.
Lomtatidze and Godshall got married in Granville County, North Carolina. The marriage ceremony was witnessed by Kennerley and another individual. Thereafter, Lomtatidze transferred $1,000 to Rahimov’s bank account.
Lomtatidze, Godshall and Kennerley entered into a rental agreement for a house located in Raleigh, North Carolina. The rent was paid for by Lomtatidze as part of the payment for the sham marriage. Thereafter, Godshall and Lomtatidze submitted fraudulent applications to United States Citizenship and Immigration Services (USCIS) requesting Lomtatidze’s adjustment of status as a lawful permanent resident in the United States (commonly known as a “green card”). Rahimov prepared Lomtatidze and Godshall for their interview with USCIS.
At the interview, both Godshall and Lomtatidze attested under oath they were married in good faith. As a result of the interview, USCIS approved the request and Lomtatidze was granted conditional resident status in the United States. Later, Lomtatidze and Godshall submitted to USCIS another application attesting they were still married in good faith and requesting Lomtatidze’s removal of conditions on his resident status. A fraudulent letter supporting Lomtatidze’s removal of conditions attesting to the legitimacy of the marriage was submitted by Godshall’s mother, Marilyn Godshall.
Godshall, Lomtatidze, and Kennerley were all charged and sentenced for conspiracy to commit marriage fraud via separate indictments in Case No. 5:19-cr-00106-FL. Moreover, Marilyn Godshall was also charged and convicted for aiding and abetting in Case No. 7:19-mj-01053-FL.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. Agents with Homeland Security Investigations, assigned to the Document Benefit Fraud Task Force, investigated 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-00180-FL.
Fayetteville Man Sentenced to 10 Years’ After Firing Gun During Gas Station RobberyRead the Press Release
NEW BERN, N.C. – Kareem Jaquian Dennings, 21, of Fayetteville was sentenced today to 120 months in prison for possessing and discharging a firearm during a crime of violence.
According to the investigation, on October 9, 2017, a little after 4 p.m., a man robbed the Fast Trip gas station on Yadkin road in Fayetteville. He walked behind the counter, and as he approached the clerk at the cash register, he pointed the gun at her and racked the slide. He demanded the money, and in the process of transferring the money into a book bag he carried, fired one shot downward past the clerk’s legs. In total he took $220.
The surveillance video showed the suspect to be a 5’6” to 5’9” African American male with a thin build. He wore his jacket hood up and a red bandana over his nose. Surveillance video showed that the suspect had handled the store’s door frame and responding Fayetteville PD officers were able to obtain a latent fingerprint. They also recovered a spent .38 caliber shell casing under the store counter.
Law enforcement ran the fingerprints through the State Automated Fingerprint Identification System (SAFIS), which reported a match to Dennings. A review of Dennings’ Facebook account showed that he matched the robber’s physical description. The account also included several photos in which he appeared to be wearing the same jacket and a similar red bandana to the robber.
When arrested, Dennings was wearing this same bandana. He denied having been to the Fast Trip gas station, but when confronted with the fingerprint evidence, he claimed that he had been drinking that day and may have forgotten visiting the store. After the interview, Dennings was observed in the interview room digging with his hands into his shorts that he wore under his pants. Officers searched him again and found a .38 caliber bullet in one of the pockets, consistent with the shell casing found at the Fast Trip.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Fayetteville Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant U.S. Attorney Jake D. Pugh 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. 5:18-cr-00107-FL.
Domestic Terrorist Sentenced for Attempting to Set Fire to Raleigh Police Department VehicleRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced to 30 months imprisonment today for attempting to set fire to a marked police vehicle in Raleigh after a demonstration over the death of George Floyd in Minneapolis, Minnesota.
Jabari Devon Davis, of Raleigh, was arrested by special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) on June 4, 2020 and was charged with one count of attempting to damage or destroy by fire a vehicle owned or possessed by an institution receiving federal financial assistance.
According to court documents, on May 31, 2020, at approximately 12:31 a.m. a fire was discovered coming from the fuel filler area of a police vehicle owned by the Raleigh Police Department (RPD), that was parked at the Raleigh Police Southeast District Station (RPSDS) in Raleigh. The fire was discovered and extinguished by an RPD Captain who was driving through the parking lot prior to the fire departments arrival. The fire caused approximately $5,000 in damage to the police vehicle. Investigators seized a charred sock located within the fuel filler of the damaged vehicle, a bottle with the odor of gasoline was located on the sidewalk, behind the damaged vehicle, and another charred sock located between the vehicle and the sidewalk.
On June 2, 2020, investigators were notified that a fingerprint was lifted from the seized bottle recovered at the scene and determined the fingerprint belonged to Davis.
On June 3, 2020, Davis was interviewed at his residence where he admitted to being the subject who intentionally set the police vehicle at the Southeast District on fire. DAVIS stated that after leaving the protest, he and his friend traveled to the RPSDS, where he retrieved the bottle of gasoline and poured a small amount of gasoline on a sock and put another sock in to the mouth of the bottle. DAVIS placed the gasoline-soaked sock in the fuel filler of the police vehicle and set it on fire. As DAVIS ran back towards his friend’s vehicle, he set the bottle with the sock on fire and threw it toward several parked police vehicles. However, when he threw it, the burning sock fell out, catching the grass and straw on fire.
G. Norman Acker, III, Acting 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 Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case and Assistant U.S. Attorney Daniel W. Smith 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-00433-D.
Apex Serial Fraudster Sent Back to Federal Prison for Investment Scam Involving Impersonation of Mayor, Professor, and Government AgencyRead the Press Release
NEW BERN, N.C. – An Apex man was sentenced today to 75 months in federal prison and ordered to pay $909,763.28 in restitution owed to dozens of victims on charges of Wire Fraud and Aiding and Abetting and Aggravated Identity Theft.
Acting United States Attorney G. Norman Acker, III stated, “This was a case involving a serial con artist who, in the course of evading the repayment of restitution to victims of his prior federal offense, engaged in a new, and more extensive fraud scheme, harming others. I am pleased that the court saw fit to return the defendant to prison to protect the public from the ongoing economic threat he continues to pose to trusting citizens.”
The case showed that defendant Charles Gilbert Murphy was subject to collection efforts by the United States Government arising from a prior federal conviction for Wire Fraud in June of 1999 in this same district. To avoid his payment obligations Murphy used his family members to open bank accounts for him in the name of various companies he controlled, referred to in the Indictment as the “Murphy Entities.” These entities were Toxic Solutions LLC (“Toxic Solutions”), Biological Marine Remediation LLC (“Bio-Remediation”), Bio Marine Remediation LLC (“Bio-Marine”), Bio Separation Systems, LLC (“Bio-Separation”), On-Site Solutions LLC (“On-Site Solutions”), and On-Site Technologies LLC (“On-Site Technologies”).
Murphy used the Murphy Entities to obtain money from individuals and entities under false and fraudulent pretenses. Murphy represented that the Murphy Entities performed environmental cleanup activities, such as water remediation. Murphy purported to offer to various entrepreneurial victims the opportunity to purchase exclusive rights to perform environmental cleanup services in a given geographic area. Murphy also purported to sell the equipment necessary to perform the cleanup services. In furtherance of the scheme, Murphy frequently presented false documents to the entrepreneurs to make it appear that funds had been allocated for services to be performed in the geographic area where the victims had purchased the exclusive rights. In reality, the documents justifying the exclusive rights purchase were falsified, and Murphy took the money without providing all of the equipment purchased.
In furtherance of the scheme, Murphy utilized the identities of others to make it appear that his companies were good investments by creating false documents and correspondence in the names of the victims. Among others, Murphy impersonated a professor, a mayor, and a representative of the Environmental Protection Agency.
Murphy defrauded dozens of victims in this case. Many of the victims lost down payments they paid to Murphy, trusting that he would deliver on his promises. Unfortunately, others lost their life savings. At sentencing the Government sought and obtained an order of restitution on behalf of these victims, totaling $909,763.28.
The investigation of this case was conducted by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, and the North Carolina Department of the Secretary of State, Securities Division. Assistant United States Attorney William M. Gilmore represents the United States.
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-432-fl .
Sex, Money, Murder Gang Member Sentenced to 12 Years for Six Robberies in RaleighRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced today to 144 months in federal prison for robbing three Subways and three gas stations in Raleigh in 2019.
According to court documents, an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of local law enforcement officials in Raleigh, North Carolina, revealed that from June 20, 2019, to June 24, 2019, Khaliq Roberto Miranda, 28 years old and a validated member of the Sex, Money Murder sect of the United Bloods Nation, robbed multiple Raleigh businesses to include three Subways and three gas stations.
On June 20, 2019, Miranda entered the Subway on Avent Ferry Road in Raleigh and approached the counter where two employees were working. Miranda shoved one of the employees in the throat to move the employee toward the cash register. Miranda then grabbed the other employee and pushed her toward the cash register. Miranda then placed what appeared to be a firearm to the back of one of the employees while instructing the other employee to empty the register. Miranda fled the scene once provided with the register money, $300.
On June 21, 2019, Miranda entered the Subway restaurant on Wake Forest Road in Raleigh. He jumped over the counter and demanded money from two restaurant employees. One of the employees denied seeing a firearm; however, noted that Miranda was holding the waistband of his pants in a manner to insinuate he possessed a firearm. Once provided with the money, $662, Miranda forced one of the employees to the back of the business to unlock the back door so he could flee. Also, on June 21, 2019, video surveillance showed Miranda enter the BP Gas Station on Louisburg Road in Raleigh. Miranda grabbed the clerk by the neck while he brandished what appeared to be a firearm and demanded the employee open the safe. After the clerk provided him with the money, $80, Miranda pushed the clerk to the ground and exited the business.
On June 23, 2019, Miranda ran into the Subway restaurant located on Western Boulevard in Raleigh, jumped the counter, and demanded money from two employees. After the clerks gave him the money, $434, Miranda had the employees lead him to the back door, through which he exited.
On June 24, 2019, Miranda once again robbed the BP Gas Station on Louisburg Road. Miranda came upon an employee who was outside smoking. Miranda grabbed the employee by the neck and forced her into the gas station. Miranda, who was holding what appeared to be a firearm, then demanded money from the employee stating, “Don’t make me shoot you with this 9.” After receiving $115 from the employee, Miranda directed the employee to lie down on the ground and then fled the business.
Later, on June 24, 2019, Miranda entered the Circle K Gas Station on New Bern Avenue in Raleigh. Miranda walked behind the counter and placed his knuckle to the back of the clerk’s neck, insinuating he possessed a firearm. Miranda then told the clerk, “You know what time it is.” The clerk emptied the register and gave Miranda a plastic bag containing $250. Miranda then ran out of the business.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Daniel W. Smith 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-00260-BO
Wilmington Man Receives 10 Years in Prison for Heroin DistributionRead the Press Release
NEW BERN, N.C. – Jarrin Anthony Clarida, age 27, of Wilmington was sentenced today to 120 months in prison for three counts of distribution of a quantity of heroin and one count of possession with the intent to distribute a quantity of heroin. On December 18, 2019 Clarida pled guilty to these charges. All the counts arose out of acts that occurred in the City of Wilmington.
According to court documents, in January 2019, investigators with the Wilmington Police Department (WPD) launched an investigation into Clarida’s drug distribution activities. Using a Confidential Informant, law enforcement conducted three controlled purchases of heroin from Clarida on January 8, 10, & 15, 2019. Following the controlled purchases, members of the WPD Gang Unit executed a search warrant at Clarida’s residence. A search of the residence uncovered heroin packaged in 220 bindles, marijuana, 3 dosage units of MDMA, miscellaneous ammunition, gang related documents, a 9mm magazine, an unloaded EKOL Volga 9mm starter gun and $5,601.00. Clarida was taken into custody and provided a statement to law enforcement officials admitting that the heroin and a large portion of the currency found in the residence were his. Per court documents, Clarida is a validated gang member and has prior state convictions that include, but are not limited to, selling a Schedule I controlled substance, interference with an electronic monitoring device, and possession with the intent to sell or deliver marijuana.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Wilmington Police Department and Federal Bureau of Investigation (FBI) investigated the case and Special Assistant U.S. Attorney Murphy Averitt prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation and the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
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. 7:19-cr-00140-FL.
Raleigh Man Convicted of Mail Fraud, Wire Fraud, and Identity Theft for Stealing from Elderly ClientRead the Press Release
NEW BERN, N.C. – A federal jury convicted a Raleigh man today on eleven counts of mail fraud, eleven counts of wire fraud, and two counts of aggravated identity theft.
According to court records and evidence presented at trial, Furman Alexander Ford, 51, was a New York Life (NYL) financial advisor who was advising a 72-year-old client who had recently inherited real property valued at $1.3 million.
Ford assisted in the sale of the property and the setting-up of a charitable annuity trust with NYL using the sale proceeds. Ford worked as an insurance and financial agent at NYL from 2012 to 2015, and the victim was his primary client while employed at NYL. The charitable annuity was set-up to pay the victim $6,000 per month during her lifetime. As part of Ford’s responsibility as the victim’s financial agent, he drafted and submitted authorized letters of withdrawal from her annuity account to pay for certain expenses. Under NYL customer service guidelines, the financial agent is required to have the client sign the withdrawal letter in person with “wet ink” before submitting it to NYL via the mail. The funds would then be electronically wired to the recipient as directed by the client with their full knowledge and consent.
During the investigation, agents identified twenty separate fraudulent letters of withdrawal drafted by Ford and submitted to NYL headquarters in New York, NY, on behalf of Ms. Jones. The letters were all mailed by Ford via UPS from his office in Raleigh. The funds requested ranged from $5,000 to $45,000 and totaled over $400,000. The proceeds were then electronically wired by NYL to Ford’s personal checking account. An FBI financial analysis traced the funds to the purchase by Ford of various personal items, including a BMW vehicle, Rolex watches, firearms, child support, and a cruise to the Bahamas. On December 29, 2014, Ford withdrew $1 million from the victim’s annuity account. Ford stole over $1.3 million from the victim.
“Integrity and trust are characteristics that all financial agents should embody,” said Acting United States Attorney Acker. “Unfortunately, the defendant used his position to prey upon one of our nation’s most vulnerable citizens and today he was held accountable for his criminal actions. Our office is dedicated to prosecuting fraud cases, particularly those directed at the elderly, and will continue to use our resources to bring to justice those who take advantage of others to line their pockets with money.”
Ford faces a maximum penalty of 444 months in prison when sentenced during the August 3, 2021 term of court.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Louise W. Flanagan accepted the verdict. The United States Postal Inspectors and the Federal Bureau of Investigation investigated the case, and Assistant U.S. Attorney Ethan A. Ontjes and Special Assistant United States Attorney Tamika Moses 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-00351-FL-1.
Fayetteville Man Sentenced to More than 10 Years for Robbery of Convenience StoreRead the Press Release
RALEIGH, N.C. – A Fayetteville man was sentenced today to 130 months in prison for robbing an Exxon convenience store in Fayetteville.
According to court documents, on December 9, 2018, Tyler Kador, 23, and Morgan Ward, 22, robbed an Exxon convenience store. Kador, armed with a firearm, walked into the store and approached the clerk, who was behind the counter. Kador pointed the gun at her and demanded that she give him money. Ward entered the store behind Kador and looked down each isle for anyone else present in the store. Ward saw a second employee and held her against a counter during the robbery. The clerk behind the counter gave Kador approximately $50. Both clerks were ordered to lie on the floor and the men left the store. Surveillance videos showed the two robbers getting into a car and driving to a nearby apartment complex. Investigators with the Fayetteville Police Department located the car and determined it was registered to Kador. Investigators were also able to determine the apartment the men went into and obtained a search warrant for that apartment. In that apartment officers found clothing consistent with the clothing worn by the robbers, ammunition and a gun box. The original purchaser of the firearm told investigators Kador purchased the firearm from him a few days before the robbery. Ward was arrested during the execution of the search warrant and confessed that he and Kador were the two that went inside the Exxon and robbed the business.
Morgan Ward was sentenced on December 21, 2020 and received a sentence of 120 months followed by 60 months of supervised release.
G. Norman Acker, III, Acting 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, Firearm and Explosives and Fayetteville Police Department 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. 5:19-cr-00351-D.
Red Springs Man Sentenced to 24 Years for Firearms CrimesRead the Press Release
RALEIGH, N.C. – A Red Springs man was sentenced today to 288 months in prison for possessing multiple stolen firearms as a convicted felon.
According to court documents, as well as evidence presented at the sentencing hearing, Martin Elliott Brooks, 39, possessed multiple stolen firearms as a convicted felon. On November 26, 2018, the Myrtle Beach Police Department investigated a burglary where multiple firearms were stolen from a hotel room. The investigation established that Brooks, stole an AK-47 rifle, an AR-22 rifle, two handguns, and hundreds of rounds of ammunition. Brooks later sold two of those firearms unlawfully.
On December 12, 2018, investigators with the United States Marshals Service, Robeson County Sheriff’s Office, and Pembroke Police Department located and arrested Brooks on outstanding warrants. During the arrest, Brooks locked himself in a bedroom and fired multiple shots into the ceiling. Several hours later, he surrendered without further incident. Investigators searched the residence and recovered two of the stolen firearms, and an additional firearm.
This case is part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement. For more information about this initiative click here: https://www.justice.gov/usao-ednc/tbnc.
G. Norman Acker, III, Acting United States 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), United States Marshals Service, Robeson County Sheriff’s Office, Pembroke Police Department, and North Carolina Department of Public Safety Special Operations and Intelligence Unit investigated the case and Assistant U.S. Attorney Chad E. Rhoades 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. 7:19-cr-00084-D.
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Two Fayetteville Residents Arrested on Alien Smuggling for Commercial Advantage, Forced Labor, and Money Laundering ChargesRead the Press Release
RALEIGH, N.C. – Two Fayetteville residents were arrested on charges within an Indictment returned by a federal grand jury and relating to violations of conspiracy to smuggle, transport and harbor aliens for commercial advantage or private financial gain, conspiracy to commit forced labor, and money laundering.
According to the forty-two (42) count indictment, Martha Zelaya-Mejia, age 37, a permanent resident of the United States, born in Honduras, and David Darnell Whitehead, age 42, a United States citizen, conspired with others to smuggle four Honduran females and their minor children from Honduras, through Mexico into the United States for commercial advantage and private financial gain. Once the Honduran females were in the U.S. Zelaya-Mejia, Whitehead and others transported, harbored, and placed them into the residence of an individual residing in Willard, North Carolina in order to obtain the labor and services by means of force, threat, physical restraint, or threats of physical restraint to the Honduran females.
On August 9, 2019, the Pender County Sheriff’s Office responded to a 911 call from one of the Honduran females that was placed at the Willard residence stating that she was not free to leave and was being held against her will, and tased by the owner of the residence.
In order to smuggle the females into the U.S. Zelaya-Mejia, Whitehead and others involved in the conspiracy transmitted thousands of dollars in various wire transfers from locations in the Eastern District of North Carolina to Honduras, Mexico and areas located on the US – Mexican border to smugglers.
If convicted of conspiracy to smuggle, transport, and conceal aliens, Zelaya-Mejia, and Whitehead face up to a maximum imprisonment of 10 years per count, a $250,000 fine, and a term of supervised release following any term of imprisonment. If convicted of conspiracy and forced labor, they face up to a maximum imprisonment of 20 years imprisonment, $250,000 fine and a term of supervised release following any term of imprisonment. If convicted of conspiracy and money laundering, they face up to a maximum term of 20 years imprisonment, $500,000 fine and a term of supervised release following any term of imprisonment.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina said, “Human smugglers, time and time again, prove the they have little regard for human life. Travelling from Honduras through Mexico into the US with small children, poses immense dangers from smugglers, gangs, and cartels that are only interested in their personal financial gain. This office will continue to aggressively prosecute those organizations that are operating in the Eastern District and deter criminals that choose to take advantage of those that are most vulnerable.”
“The arrests will bring an end to the reign of terror that these two predators inflicted on their victims. Human smuggling is akin to modern day slavery and the perpetrators of this evil do tremendous physical and mental damage to their victims,” said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina. "Having these two off the street is a small step in making this country safer and we will continue our relentless pursuit of any and all who would choose to follow in their path.”
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. Agents with Homeland Security Investigations, Pender County Sheriff’s Office, and the Cumberland County Sheriff’s Office Organized Crime Unit are investigating the case and Assistant U.S. Attorney Gabriel Diaz is prosecuting 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.7:20-CR-191.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Shooting in Henderson Lands Convicted Felon in Federal PrisonRead the Press Release
WILMINGTON, N.C. –A Henderson man was sentenced yesterday to 96 months in prison for Possession of a Firearm by a Felon.
According to court documents and other evidence, Jerome Cozart, 31, engaged in a shootout with another individual at a convenience store on East Andrews Avenue in Henderson. Video surveillance shows the two men in a verbal altercation, when Cozart retrieves a handgun and shoots toward the other man who returned fire. A Henderson Police Department officer was nearby on routine patrol and immediately responded to the scene, placing Cozart into custody. No one was injured.
Cozart had prior convictions for Common Law Robbery, Breaking or Entering and Terrorizing or Injuring, and Possession of a Firearm by a Felon.
G. Norman Acker, III, Acting 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 Henderson Police Department investigated the case and Assistant U.S. Attorney Robert J. Dodson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-293-M.
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Former FCI Butner Correctional Officer Indicted on Bribery and Smuggling Contraband ChargesRead the Press Release
WILMINGTON, N.C. – A federal grand jury returned an indictment last week, charging a Cameron man with Bribery, Conspiracy to Introduce Contraband into a Prison, and Introducing Contraband.
“Contraband in prisons is one of the greatest threats to both inmates and correctional officers,” stated Acting United States Attorney G. Norman Acker, III. “This indictment seeks to hold a correctional officer who allegedly violated the trust of his peers by conspiring with inmates to introduce contraband to the prison. My office will always prosecute those who endanger lives and disrupt the good order and discipline within our correctional institutions.”
“When correctional officers smuggle contraband into prisons, they jeopardize the safety of the very institutions they are charged with protecting. The OIG is committed to investigating this type of behavior,” said Russell Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General Washington Field Office.
According to the indictment, Casey Covington, 45, a correctional officer at the Federal Correctional Institution in Butner, conspired with three inmates to smuggle cell phones into the prison. Covington is also accused of accepting bribes in exchange for smuggling in the cell phones and other contraband, including marijuana, tobacco, and alcohol.
According to the indictment, inmates Christopher Lee Davis, 36, Antonio Demond Byers, 40, and Robert Henry Huitt, 32, were also each charged with conspiring with Covington and possessing cell phones in prison.
If convicted, Covington faces 15 years in prison, and Davis, Byers, and Huitt each face up to 1 year in prison.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The Department of Justice, Office of the Inspector General, is investigating the case and Assistant U.S. Attorney Robert J. Dodson is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Fayetteville Man Convicted of Firearm and Drug Trafficking Charges by Federal JuryRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Fayetteville man yesterday on charges of possession of a firearm by a convicted felon, possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime.
According to court records and evidence presented at trial, Miguel Marquis Hutchinson 35, was encountered inside a car at McDonalds on Bragg Blvd. by Fayetteville police officers investigating a nearby armed robbery. Hutchinson matched the description of the armed robbery suspect and provided a false name to the officers. When asked to step out of the car, he made a suspicious movement that caused the officers to jump forward and pin him down. Meanwhile, other officers had observed store security footage which confirmed Hutchinson was not the person being sought for the armed robbery.
During the encounter at the car, officers smelled the odor of marijuana and conducted a search of the car which resulted in locating approximately 22 grams of marijuana inside the center console, baggies, and a digital scale. A loaded 9mm Taurus pistol was also located positioned and ready for use between the driver’s seat on the right side pinned against the center console.
Hutchinson was previously convicted of second-degree murder in North Carolina state court in 2006 in Cumberland County, North Carolina.
Hutchinson faces a mandatory minimum sentence of 5 years’ imprisonment and a maximum sentence of Life in prison when sentenced on June 7, 2021.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle accepted the verdict. Homeland Security Investigations and the Fayetteville Police Department are investigating the case and Assistant U.S. Attorney Gabriel J. Diaz 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.5:19-cr-00523-BO-1.
Drug Dealer Who Brought Young Children to Drug Deal Receives 78 Months in Federal PrisonRead the Press Release
WILMINGTON, N.C. – A New Hanover County man was sentenced yesterday to 78 months imprisonment for distribution of a quantity of heroin and fentanyl; possession with intent to distribute a quantity of heroin; and, possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and other evidence, on January 22, 2020, the Wilmington Police Department conducted a controlled purchase of heroin from Quadarrius “Reckless” Cotten, 23, in the bathroom of a Burger King restaurant in Wilmington. At time the of the sale, Cotten was accompanied by two young children. A photograph introduced at the sentencing hearing showed one of the children wearing a Burger King crown standing next to Cotten as he delivered the drugs.
On January 28, 2020, the Wilmington Police Department conducted a second controlled purchase of fentanyl and a firearm from Cotten. Law enforcement later determined that the firearm which Cotten possessed during the offense was stolen.
On May 16, 2020, the Wilmington Police Department was conducting surveillance in the area of 6th and Campbell Streets due to concerns over retaliatory gang violence. Cotten, a validated gang member, was observed engaging in an argument with an individual who was armed with an AK-47 rifle. Officers intervened and during a search of Cotten found a small amount of heroin and nearly $400 in cash in his possession.
Cotten had prior convictions for Conspiracy to Commit Common Law Robbery and Possession of a Firearm by a Convicted Felon.
G. Norman Acker, III, Acting 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 Safe Street Task Force and the Wilmington 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. 7:20-cr-00103-M.
Raleigh BP Gas Station Robber Sentenced to 84 months’ ImprisonmentRead the Press Release
WILMINGTON, N.C. – A Raleigh man was sentenced today to 84 months in federal prison for robbing the BP Gas station located at 4330 Louisburg Road in Raleigh.
According to court documents, on August 15, 2019, officers of the Raleigh Police Department, responded to a BP gas station regarding an armed robbery. The store clerk advised the suspect, later identified as Demarius Jerrad Morris, 29, entered the store, brandished a firearm at him/her, and demanded money. The clerk provided Morris with $65 of U.S. currency with an attached a GPS tracker. Police dispatch monitored the tracker and advised responding officers of the tracker’s location. Officers initiated a traffic stop on a vehicle and detained Morris, who matched the description of the robbery suspect. During a search of the vehicle, officers seized the stack of U.S. currency, a loaded firearm, and various ammunition.
G. Norman Acker, III, Acting 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 Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Daniel W. Smith 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-00195-BO.
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North Carolina Durable Medical Equipment Corporation Sentenced for $10 Million Healthcare Fraud Scheme, and the Company and Its Owner Agree to Pay Millions to Resolve Related Civil ClaimsRead the Press Release
RALEIGH, N.C. – A North Carolina corporation was sentenced today to 5 years’ probation and ordered to pay a $2,000,000 fine in addition to paying $10,069,361.35 in restitution to the North Carolina Medicaid Program on a charge of Healthcare Fraud, in violation of Title 18, United States Code, Section 1347. The company and its owner have also agreed to pay millions to the United States and State of North Carolina to resolve related civil claims under the federal and state False Claims Acts. In that same civil action, the Governments have obtained a multi-million-dollar judgment against one of the company’s employees.
According to court documents, A Perfect Fit for You, Inc., was a durable medical equipment provider located in Morehead City, North Carolina, and owned by Margaret A. Gibson. Durable medical equipment includes items such as powered wheelchairs, orthotic braces, diabetic shoes, powered air flotation beds, osteogenesis stimulators, pneumatic compressors, etc. Between March 2015 and November 2016, one or more employees of A Perfect Fit for You submitted fraudulent billings claims to Medicaid for providing durable medical equipment to Medicaid recipients. These fraudulent claims contained the personal identifying information of Medicaid recipients who had never ordered nor received any durable medical equipment from A Perfect Fit for You. In fact, some of the patients had been deceased years before the false claims were even submitted. This scheme resulted in an estimated loss to Medicaid of approximately $10,069,361.35.
After appointment of a receiver, A Perfect Fit for You, Inc. self-reported suspected fraudulent activity to the North Carolina Medicaid Investigations Division. Thereafter, the company cooperated throughout the investigation.
On December 13, 2017, and based on the conduct described above, the United States and State of North Carolina filed a civil complaint under the federal and state False Claims Acts against A Perfect Fit for You, Inc. and Gibson, as well as one of the company’s employees, Shelley P. Bandy. The federal and North Carolina False Claims Acts mandate that the Governments recover triple the money falsely obtained, plus substantial civil penalties for each false claim submitted. To resolve those claims, the company has agreed to pay $20,138,722.70, while Gibson has agreed to pay $4,000,000. As for Bandy, the United States and State of North Carolina have obtained a $34,708,945.42 default judgment against her in the civil action. It should be noted that the civil claims against A Perfect Fit for You, Inc. and Gibson are allegations only and were resolved by settlement. There has been no judicial determination or admission of liability as to them in the civil case.
On December 29, 2020, Bandy pled guilty to making false statements relating to health care matters in violation of Title 18, United States Code, Section 1035. Bandy admitted to submitting fraudulent claims to Medicaid on behalf of A Perfect Fit for You, Inc. Bandy is scheduled to be sentenced later in March, 2021.
G. Norman Acker, III, Acting United States Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The investigation of this case was conducted by the North Carolina Department of Justice’s Medicaid Investigations Division (MID) and the United States Department of Health and Human Services Office of the Inspector General. Assistant United States Attorney William M. Gilmore is the prosecutor on the criminal case, while Assistant United States Attorney C. Michael Anderson represented the United States in the civil case. Special Deputy Attorneys General F. Edward Kirby, Jr. and Michael M. Berger, who also serve as a Special Assistant United States Attorneys, represented the United States and the State of North Carolina in the civil case.
The MID investigates and prosecutes health care providers that defraud the Medicaid program, patient abuse of Medicaid recipients, patient abuse of any patient in facilities that receive Medicaid funding, and misappropriation of any patients’ private funds in nursing homes that receive Medicaid funding. To report Medicaid fraud or patient abuse in North Carolina, call the MID at 919-881-2320.
The MID receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $6,160,252 for Federal fiscal year (FY) 2020. The remaining 25 percent, totaling $2,053,414 for FY 2020, is funded by the State of North Carolina.
Former U.S. Marine Sentenced for Illegal Exportation of Firearms and Controlled EquipmentRead the Press Release
RALEIGH, N.C. – Jacques Yves Sebastien Duroseau, age 34, a former U.S. Marine born in Haiti and a naturalized citizen of the United States, residing in Onslow County, was sentenced today by United States District Judge James C. Dever III to 63 months in prison.
On December 12, 2020, Duroseau was convicted following a three-day trial (conviction) of conspiracy to illegally export and smuggle firearms and controlled equipment from the United States to Haiti, as well as transporting firearms without a license to the Haitian Army. Additionally, the jury decided that the firearms and equipment should be forfeited.
At trial, the evidence showed that Duroseau, at the time an active duty U.S. Marine with the rank of sergeant, along with a co-conspirator, both impersonated high ranking military officers and pretended to be on military business in order to facilitate the illegal transportation of eight firearms, including a Ruger model Precision Rifle 300WIN MAG and a Spike’s Tactical model ST15, as well as copious ammunition, riflescopes, and body armor, via commercial aircraft to Haiti. The evidence further showed that Duroseau’s purpose was to train the Haitian Army with the firearms and equipment in order to engage in foreign armed conflict.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The investigation of this case was conducted by agents of the Naval Criminal Investigative Service and Homeland Security Investigations. Additional assistance was provided by the Department of State’s Diplomatic Security Service and Directorate of Trade Controls, the Department of Commerce’s Bureau of Industry Security, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the U.S. Marine Corps.
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. 4:20-cr-00003-D.
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Man Convicted of Human Trafficking by Federal Jury After Five-Day TrialRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Smithfield man Friday of conspiracy to commit sex trafficking by force, fraud, or coercion and of a minor; sex trafficking by force fraud and coercion; sex trafficking of a minor; using the internet to promote a prostitution business enterprise (ITAR); and possession of a firearm by a convicted felon.
According to court records and evidence presented at trial, Jonathan Lynn Jenkins, aka “Max,” 48, and his co-conspirator prostituted many women between November 2014 and October 2015, including minors. The victims were young, vulnerable, and often struggling to survive. After luring the victims with promises of food, shelter, and a better life, Jenkins and his co-conspirator manipulated and controlled the victims’ lives, isolating them, withholding food, and keeping all money the victims earned. The defendant beat and choked the victims, sometimes to unconsciousness. He emotionally and psychologically abused them. Among other threats, he claimed to have magical powers that allowed him to hunt down victims and kill them. He sexually assaulted victims and forced them into sexual acts against their will. And he attempted to murder a man who helped one victim escape.
Jenkins was convicted of second-degree murder in North Carolina state court in 2006, and first-degree murder charges are pending against him in state court in Johnston County, North Carolina.
Acting United States Attorney Acker stated: “Human Trafficking – the horrible exploitation of those vulnerable among us – is one of the worst and most intolerable crimes we prosecute. It is simply modern-day slavery and cannot be tolerated. This verdict allows us to take another step in the right direction as we work to eliminate this crime and its terrible consequences for our communities.”
“This sentence ensures that Jenkins, a serial offender, will not be able to continue his reign of terror on some of the most vulnerable people in our community,” said acting Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina. “I’m thankful for the hard work from HSI and its partners that led to investigating, arresting and prosecuting this predator.”
Jenkins faces a mandatory minimum sentence of fifteen years’ imprisonment and a maximum sentence of life.
G. Norman Acker, III, Acting 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 Department of Homeland Security – Homeland Security Investigations, the Raleigh Police Department, the North Carolina State Bureau of Investigation, and the Johnston County Sheriff’s Office investigated the case. Assistant U.S. Attorneys Erin Blondel and Lucy Brown 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.5:18-cr-00451-D.
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G. Norman Acker, III to Serve as Acting United States Attorney for the Eastern District of North CarolinaRead the Press Release
RALEIGH, N.C. – G. Norman Acker, III has begun serving as the Acting United States Attorney for the Eastern District of North Carolina, following the departure of U.S. Attorney Robert J. Higdon, Jr. on February 27, 2021.
Acting U.S. Attorney Acker has served as an Assistant United States Attorney (AUSA) for more than thirty years. During his tenure he has litigated numerous civil and criminal cases in United States District Court as well as in the Fourth Circuit Court of Appeals. He was the Deputy Civil Chief and the Civil Chief for a total of 18 years, and for the last 3 years has served as the First Assistant United States Attorney, supervising the work of the Civil, Criminal and Appellate Divisions.
“It is an honor and a privilege to represent the people of the United States in Federal Court,” said Acting U.S. Attorney Acker. “The U.S. Attorney’s Office has worked closely with Federal, State and Local law enforcement agencies over the past several years to protect the citizens of the Eastern District of North Carolina, and I pledge to do my best to continue this important work.”
While working as an AUSA, Mr. Acker’s primary focus of litigation was pursuing individuals and corporations who committed fraud against the United States. He was the Affirmative Civil Enforcement Coordinator and the Health Care Fraud Coordinator for the office. He handled “white collar” cases involving contract fraud against the military, health care fraud against the Medicare and Medicaid programs, as well as many other types of fraud against the government.
During his tenure as an AUSA, he has received numerous awards, including the Commander’s Award for Public Service, the Army’s highest civilian medal, in appreciation for judgments and settlements totaling several million dollars, and the Health and Human Services Inspector General’s Integrity Award for a criminal prosecution that resulted in a related civil settlement of more than $23 million. In addition, Mr. Acker was the lead attorney in two month-long trials against Tuomey Hospital for Medicare fraud that resulted in a judgment for $237 million against the hospital.
Mr. Acker has served as the Professional Responsibility Officer for the U.S. Attorney’s Office for many years, and he also served for several years on the North Carolina State Bar Ethics Committee.
Mr. Acker was born and raised in Raleigh and is a lifelong resident of the Research Triangle area. He received both his undergraduate degree and his law degree from the University of North Carolina at Chapel Hill. He has been married for 37 years and has three grown children and four grandchildren.
Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina Steps Down This WeekendRead the Press Release
RALEIGH, N.C. - This weekend Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, will step down, along with all remaining Presidentially-appointed United States Attorneys across the country, in response to a request from the President.
First Assistant United States Attorney Norman Acker will assume the role of Acting United States Attorney upon Mr. Higdon’s resignation. Mr. Acker will serve in that capacity until a new Presidentially-appointed United States Attorney is named by the current Administration and is confirmed by the United States Senate.
Mr. Higdon was appointed as United States Attorney by former President Donald Trump in 2017, following the recommendation of North Carolina’s United States Senators, Richard Burr and Thom Tillis. He has served for more than 28 years as a federal prosecutor.
Mr. Higdon commented: “It has been my great privilege to serve the people of eastern North Carolina as United States Attorney and as the Chief Federal Law Enforcement Officer over the last three and a half years. I am grateful to President Trump and to Senators Burr and Tillis for their trust in me and for their constant support and encouragement. I am also grateful to Attorneys General Jeff Sessions and Bill Barr for their leadership, their confidence in me and for the opportunity to serve the people of this State as we look for solutions to some of the most intractable problems plaguing communities all across the Eastern District. To serve in this way has been the greatest honor of my career.”
During Mr. Higdon’s tenure as United States Attorney, federal criminal prosecutions and civil litigation saw dramatic transformation and success with a sharp focus on the mission of the United States Attorney, commitment to the priorities laid out by the Department of Justice and reliance on the exceptional men and women who serve in the United States Attorney’s Office.
Prior to stepping down Mr. Higdon highlighted some of the key accomplishments over the last three and a half years:
Criminal
Regarding criminal prosecutions, Mr. Higdon noted: “Early in 2017, the United States Department of Justice, and the 94 United States Attorney’s Offices, were directed to (1) undertake all necessary and lawful action to break the back of criminal cartels that have spread across our nation; (2) reduce violent crime across the country; and (3) stop crimes of violence against law enforcement officers.” (See, Executive Orders issued on February 9, 2017.) “Indeed, upon our appointment, each United States Attorney was personally directed by the Attorney General to embrace these goals and to show meaningful and substantial results within the federal district each was chosen to lead.”
Mr. Higdon continued: “In the Eastern District of North Carolina (EDNC) we embraced the goals set out by the President and we reorganized and rededicated ourselves in order to make a difference in the safety and security of communities all across the eastern half of North Carolina. This effort involved the renewal of frayed relationships with federal, state and local law enforcement, the addition of a large number of new federal prosecutors and support staff who shared the vision of the new leadership and the aggressive and strategic prosecution of those who would violate federal criminal law.”
“Since 2017 the attorneys and staff of the office have prosecuted record numbers of offenders, particularly violent and drug offenders, have charged more defendants annually than at any time in the District’s 231 year history – a more than 125% increase over 2016 annually - and have partnered with federal, state and local law enforcement in ways leading to a sustained and measurable decline in crime rates all across the District.”
“In our effort to serve all 44 counties within the Eastern District, we have worked to move our attorneys and staff out into the District and away from a concentration in Raleigh; we have opened a staffed office in Wilmington for the first time in the District’s history; and, we have conducted regular office hours throughout the District for the purpose of meeting with law enforcement, providing advice and guidance and for the intake of cases and matters for federal investigation and prosecution. We have also worked to strengthen our relationships with the elected District Attorneys and those working with them throughout the District.”
-National Security
The EDNC is an area with substantial but vulnerable assets that are often the targets of threats to the national security. These threats come from outside the United States, from within, and are often from mixed sources. However, at the beginning of 2017 the United States Attorney’s Office had no meaningful national security apparatus despite its shared responsibility for the security and integrity of the four military bases residing in the EDNC, significant portions of the Research Triangle Park, substantial research universities and facilities, significant critical infrastructure and our easily accessible coastline and transportation corridors. To bring the office back into partnership with national security agencies the USAO:
-stood up a National Security Section which now includes 5 experienced Assistant United States Attorneys who prosecute significant security threats;
-included the prosecution of illegal aliens found in the district who are committing other crimes as part of our national security mandate; this focus included the addition of an immigration crime analyst with substantial investigative experience related to large scale immigration crimes;
-partnered with the Department of Justice’s Office of Immigration Litigation (OIL) to increase resources in this area of prosecution;
-added a dedicated cybercrimes attorney in the National Security Section with responsibility to aid other litigating divisions of the office;
-conducted focused and targeted outreach to vulnerable communities (based on ethnicity, race, national origin, faith, etc.) to ensure equal access to the court and justice system, to provide for individual and group safety and security, to develop prevention skills and techniques and to develop a level of trust between these individuals and the law enforcement community.
-Violent Crime
Like so many other districts around the country, the EDNC saw a dangerous increase in violent crime rates between 2013 and 2016. This period coincided with a reduction in the Department of Justice’s support for and commitment to the prosecution of violent offenders across the country. Following the direction of the President and the Attorney General, in late 2017 and early 2018, the USAO worked to revitalize the District’s Project Safe Neighborhood program and augmented that effort with the development of the “Take Back North Carolina Initiative”. The programs, working in tandem, included:
-the regional assignment of federal prosecutors to work closely with federal, state, and local law enforcement to identify those individuals driving the violent crime and drug problems in a particular community, develop prosecutions against them, and remove them from the area;
-empowering federal prosecutors to accept cases for prosecution directly;
-emphasis on the prosecution of those who were driving criminal activity in a particular area;
-close coordination with the elected District Attorneys;
-charging the most serious, readily provable offense in every case;
-encouraging all offenders to cooperate against those higher up in the criminal activity of which they were a part;
-sustained focus on a community or region until the crime rates began to decline;
-use of outreach and community development efforts to provide an alternative to criminal activity;
-sustained focus on criminal gangs and gang related activity;
-the prosecution of any offender who risks the life or safety of law enforcement officers if their crime is a violation of federal criminal law;
-working to highlight the work of the office, as a deterrent, whenever possible through appropriate media outlets;
-Organized Crime Drug Enforcement Task Force
By 2016 the District’s drug prosecution efforts had fallen to record lows. Beginning in late 2017, the office reorganized and reenergized its efforts to disrupt and dismantle key drug trafficking organizations through its Organized Crime Drug Enforcement Task Force (OCDETF) by:
-reappointing an experienced and skilled attorney to lead the effort;
-rebuilding the task force from four attorneys to a team of 14 Assistant United States Attorneys and Special Assistant United States Attorneys focused solely on attacking transnational and international drug trafficking organizations operating within the EDNC;
-inclusion of the OCDETF attorneys in the District’s “Take Back North Carolina Initiative;”
-focusing aggressively on the opioid and heroin epidemic through aggressive prosecution of offenders distributing these substances and through community outreach and education; development of a Heroin Education Action Team (HEAT) to provide information and counseling to users of these substances or those faced with the chance to begin using them;
-charging the most serious, readily provable offense in every case;
-sustained, strategic focus on criminal gangs and gang related activity;
-more than tripling the number of active, funded, and authorized OCDETF investigations underway in the District;
Working to highlight the work of the office, as a deterrent, whenever possible through appropriate media outlets;
-Economic Crime
In the last four years the District, like so many other locations in the country, has faced challenges and hurdles in the form of a pandemic, natural disasters, and other types of adversity where governmental agencies step in to provide assistance and help. In each and every case there is an element of fraud and misuse that occurs, and which undermines the goals and purpose of the assistance. In the EDNC we have developed standing and ad hoc task forces which have addressed fraud issues in these and other areas. We have organized a task force to focus on fraud related to the pandemic and to address issues related to the hording of personal protective equipment (PPE); we have trained thousands of senior citizens on elder fraud scams and prosecuted numerous perpetrators in federal court. We have also attempted to deter fraud associated with disaster relief through aggressive prosecutions and community outreach and awareness.
Our economic crime attorneys have prosecuted some of the most prolific financial crimes in the District’s history and have recovered millions of dollars in loses which have been returned to the victims of crime.
Civil
The attorneys and staff of the USAO who focus on civil matters – the representation of the United States as plaintiff or defendant in civil litigation – have continued to perform at record setting levels. These professionals routinely handle some of the most complex and impactful litigation in the country. In the last four years the Civil Division has:
-functioned at twice or better the national average in terms of matters handled per attorney;
-seen record recovery of assets which are the proceeds of, or which have facilitated criminal activity;
-partnered with the Criminal Division in the effort to fight the opioid pandemic through the investigation and litigation against medical providers and pharmacists who step away from their professional obligations and have aggravated this problem;
-participated actively in the fight against program fraud, fraud associated with the COVID-19 pandemic and fraud following natural disasters;
-continued to handle all civil commitment litigation of dangerous sex offenders in federal prison for the entire country (Adam Walsh litigation);
-responded to the hundreds of requests for compassionate release by prisoners in federal prisons due to the pandemic;
-maintained a sophisticated civil litigation docket to include medical malpractice defense, employment matters within federal agencies, bankruptcy litigation, asset forfeiture, tax matters and litigation associated with a wide range of federal agency functioning.
Administrative and Organizational
The Administrative Division of the United States Attorney’s Office assists the United States Attorney in overseeing an operation with an annual budget approaching $20 million, with more than 130 employees and contractors and with some 40 Special Assistant United States Attorneys. During the last four years the Division, in addition to its substantial daily responsibilities, also led efforts to move the office’s headquarters from the Federal Courthouse in Raleigh into private space, the opening of a staffed office in Wilmington, the closing of an unnecessary and underutilized office in Greenville, the improvement of facilities in New Bern, Greenville and Elizabeth City and the rebuilding of space in the federal courthouse in Wilmington following two hurricanes which rendered the space unusable. The Division also continued its active and critical support of the litigating functions of the office.
Relationships With Law Enforcement
Over the last three and a half years, the USAO has made a concerted effort to provide support to law enforcement all across the District. Through the “Take Back North Carolina Initiative”, moving our attorneys and staff out into the District on a daily basis, careful listening to and respect for the expertise of law enforcement officials all across the District who know their communities and who know who and what to pursue in order to drive down our crime rates and make our communities safer and more secure, and, by aggressively prosecuting any offense that places the life or safety of a law enforcement officer in jeopardy. With the encouragement and support of the President and the Attorneys General, we have attempted to be as supportive as possible of our law enforcement communities. Through both words and actions, we have attempted to say, “We have your back and you have our thanks.”
Conclusion
Finally, Mr. Higdon commented: “It has been a deeply humbling privilege to serve alongside the men and women of the United States Attorney’s Office for the Eastern District of North Carolina and with law enforcement all across the District. To serve as the 47th Presidentially-appointed United States Attorney for this half of North Carolina is an opportunity I never anticipated and never expected. But, to have the chance to work with these exceptional professionals and the brave heroes who serve us in uniform has been a true blessing. I hope that we have served the people of this District, this State, and this Country well. I am proud of the work we have done together. And, I hope and pray for the continued success of these fine public servants in the years to come.”
Man Sentenced to More Than 34 Years in Federal Court for Planning and Aiding Pair of Jewelry Store Robberies in Elizabeth City and GarnerRead the Press Release
NEW BERN, N.C. – A High Point man was sentenced today to 411 months in prison for conspiracy to commit Hobbs Act robbery, two counts of Hobbs Act robbery, brandishing a firearm during and in relation to a federal crime of violence, witness tampering and aiding and abetting in those crimes.
Charles Walker, Jr., a/k/a “Supreme,” 56, was convicted on December 11, 2020, after a jury trial in New Bern. The case involved two Hobbs Act robberies at Kay Jewelry stores, one in Elizabeth City and one in Garner. The robbers were able to get away with almost $600,000.00 worth of jewelry. These were violent robberies as firearms were brandished during both robberies. During one of the robberies, a store employee was handcuffed behind her back and left in a backroom of the store. During the trial, the defendant took the stand and admitted during cross-examination that he is closely associated with a high-ranking blood member in Greensboro.
Walker is an extremely violent and dangerous individual. He was previously convicted of first-degree murder. He ultimately won a new trial and pled guilty to conspiracy to commit murder and accessory after the fact to murder after he had served 17 years in prison.
Robert J. Higdon, 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 Federal Bureau of Investigation (FBI), the Elizabeth City Police Department, the Garner Police Department, and the Greensboro Police Department investigated the case and Assistant U.S. Attorneys Robert J. Dodson and Daniel W. Smith 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. 2:18-CR-37-FL-1.
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Wilmington Man Sentenced to 99 Months for Gun OffenseRead the Press Release
NEW BERN, N.C. – Antonio Blake Spencer, 32, of Wilmington, North Carolina was sentenced today to 99 months in prison for possession of a firearm by a convicted felon. Spencer was charged with one count of felon in possession of a firearm on April 30, 2019 and pled guilty on October 17, 2020.
According to court documents and other information, on April 21, 2019, while on probation for multiple prior state offenses, including a felony drug conviction, Spencer was involved in an altercation with a pregnant female in the Houston Moore housing complex in Wilmington. During the altercation – which was captured on Wilmington Housing Authority surveillance video – Spencer brutally assaulted the female. The female ultimately was able to flee the scene. Moments later, Spencer was approached by a male subject and the two fought for several minutes. During the struggle, a gun Spencer had in his waistband, dropped to the ground and was ultimately used to shoot Spencer multiple times. Spencer was treated and released from the hospital two days later. Just nine days after the shooting incident, on April 30, 2019, law enforcement located Spencer in an effort to serve him with arrest warrants for assault on a female and assault on an unborn child arising from the April 21, 2019 incident. At the time of arrest, Spencer again had a firearm on his person, along with a quantity of PCP in his vehicle. During a post-arrest interview, Spencer admitted to possessing the firearms from both the April 21 and April 30 incidents.
Robert J. Higdon, 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 North Carolina 6th Judicial District Attorney’s Office, Wilmington Police Department, New Hanover County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) investigated the case, and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
This case is also 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 make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
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. 7:19-CR-00092-FL.
Methamphetamine Trafficker Who Fired a Handgun at Officer Receives 198 Months in JailRead the Press Release
RALEIGH, N.C. – Sean Smith, 32, of Onslow County, was sentenced on February 17, 2021, to 198 months imprisonment for possession with intent to distribute a quantity of methamphetamine and possessing, brandishing, and discharging a firearm in furtherance of a drug trafficking crime.
The investigation, along with evidence presented in court, revealed that on October 22, 2019, an Onslow County Sheriff’s Deputy was investigating a possible burglary on West Morton Street in Jacksonville. The deputy was dressed in his police uniform and arrived in a patrol car. While the deputy was speaking to an individual at the scene, Smith emerged from the side of the residence and fired a gun at the deputy from a distance of approximately 8-12 yards. The deputy, who was uninjured, retreated to his patrol vehicle and retrieved his rifle. Smith fled the scene but was later found seated on the steps of a nearby residence. The 9mm handgun was found underneath the porch where Smith was seated. Smith ultimately admitted to firing the gun. Smith was searched following his arrest and was found in possession of approximately 12 grams of methamphetamine and 3 grams of cocaine.
During the investigation, law enforcement obtained evidence that Smith had possessed more than 400 grams of methamphetamine from September 2019 until the time of his arrest.
On January 1, 2021, Smith was captured on a recorded Facetime jail phone call bragging about how he had fired the gun at the officer, even demonstrating shooting the gun and laughing about the incident. Smith also described how law enforcement would be unable to find a large amount of methamphetamine that he had hidden at an earlier time.
Mr. Higdon commented: “We are certainly gratified by the sentence imposed by the court in this case. Sean Smith is a dangerous, cruel drug dealer, and that alone makes his prosecution critical to ‘Taking Back North Carolina’ for drug traffickers and violent criminals. But his decision to risk the lives of law enforcement officers investigating his crimes puts him at the head of the line for prosecution as we attempt to support the brave officers who do the dangerous work of investigating armed drug trafficking.”
According to law enforcement, Smith was a member of a violent white supremacist organization. Smith had prior convictions including possession or distribution of methamphetamine precursors; assault on a government official; possession of methamphetamine and, assault inflicting physical injury on a detention officer or employee. Smith was on probation for possession of methamphetamine and felony assault inflicting physical injury on a detention employee or officer at the time of this offense.
The investigation was part of OCDETF Operation. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. This OCDETF focuses on a Multi-State Drug Trafficking Organization and Gang Activity that has been responsible for the distribution of large quantities extremely pure methamphetamine throughout the United States.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing before U.S. District Judge Terrence W. Boyle. The Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Onslow County Sheriff’s Office, and the North Carolina Highway Patrol took part in the investigation. 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. 5:20-CR-00005-M.
Major Heroin and Fentanyl Trafficker Receives 30 Years in Federal PrisonRead the Press Release
NEW BERN, N.C. – Darion “Pluck” Graham, 31, of New Hanover County, North Carolina, was sentenced on February 16, 2021, to 365 months imprisonment for conspiracy to possess with the intent to distribute and distribution of 1,000 grams or more of heroin; two counts of distribution of a quantity of heroin and aiding and abetting; and possession with the intent to distribute 100 grams or more of heroin and aiding and abetting.
The investigation, along with evidence presented in court, revealed that beginning in October 2015 until May 2017, the Brunswick County Sheriff’s Office, the New Hanover County Sheriff’s Office, and the Wilmington Police Department made several controlled purchases of more than 90 grams of heroin from Graham and persons working at his direction in various locations in Wilmington, North Carolina.
On August 29, 2017, the Wilmington Police Department, with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives, executed a search warrant at Graham’s residence on Summertime Lane in Wilmington. Graham was on house arrest for pending state charges at the time the search took place. During the search, law enforcement found a small quantity of heroin and fentanyl, packaging material, and more than $13,000. As law enforcement made forced entry into the residence, Graham managed to flush a large quantity of heroin down the toilet. As a result, Graham was detained exiting the bathroom.
From February 2019 until May 2019, the Wilmington Police Department, working with the Federal Bureau of Investigation (FBI), made several controlled purchases of 30 grams of heroin from Graham in the Wilmington area.
On June 28, 2019, the Wilmington Police Department, together with the FBI, executed a search warrant on a River Front Place Apartment in Wilmington. The apartment was rented in the mother’s name of one of Graham’s co-conspirators. As law enforcement was conducting the search of the residence, Graham and his co-conspirator arrived at the residence and attempted to flee upon seeing the police. Law enforcement found 761 grams of a heroin/fentanyl mixture and more than $16,000 in drug proceeds.
The investigation revealed that Graham held a position of leadership in a large heroin and/or fentanyl drug trafficking organization which had more than 10 people. Graham was supplying heroin and/or fentanyl and working with several members of a violent gang in Wilmington. Graham obtained heroin from New York, and, on one occasion, he and a co-conspirator picked up 3 kilograms of heroin. Graham was responsible for the distribution of more than 7 kilograms of heroin overall, more than 750 grams of a heroin/fentanyl mixture, and a quantity of a heroin/methamphetamine mixture. Graham had a prior conviction for Conspiracy to Sell a Schedule I Controlled Substance. Graham was one of the largest heroin suppliers in New Hanover County at the time of his arrest in 2019. While awaiting sentencing, Graham attempted to intimidate witnesses by disclosing their identity on social media.
The investigation was part of OCDETF Operation. An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. This OCDETF focuses on a Multi-State Drug Trafficking Organization and Gang Activity that has been responsible for the distribution of heroin, fentanyl and methamphetamine throughout the United States.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing before U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, Wilmington Police Department, Holly Ridge Police Department, and the Brunswick County Sheriff’s Office and New Hanover County Sheriff’s Office investigated the case. 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. 5:20-CR-00005-M.
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Former Schoolteacher from Cary Sentenced to 12 Years on Child Pornography ChargesRead the Press Release
NEW BERN, N.C. – Chip Hollingsworth of Cary, North Carolina, was sentenced today to 144 months in prison after pleading guilty to eleven counts charging receipt and possession of child pornography.
According to court documents and statements made in court, in summer 2018, the Federal Bureau of Investigation (FBI) was conducting an undercover investigation on the chat and file sharing platform called, “Gigatribe.” On August 6, 2018, an unknown user contacted the undercover investigator, transmitted child pornography, and requested images of 10-12-year-old boys in recorded conversations. After obtaining account information from Gigatribe and an internet service provider, law enforcement identified the user as the defendant Chip Hollingsworth at a residence in Cary, North Carolina. Law enforcement further determined that Hollingsworth had been employed as an elementary school teacher.
On August 20, 2018, members of the FBI and Cary Police Department executed a federal search warrant at Hollingsworth’s residence. He agreed to be interviewed and admitted to having a Gigatribe account, with which he obtained, viewed, and shared child pornography.
Officers seized multiple electronic devices and conducted a forensic examination. Nearly 1,500 images and videos were found that constitute child pornography, the majority depicting children under 12. File metadata showed that Hollingsworth had received the files on dates from as early as August 29, 2008 to July 21, 2018.
United States Attorney Higdon commented “We are grateful for the sentence handed down by the Court today. As I have repeatedly said, the sexual exploitation of the most vulnerable among us – our children – is one of the worst offenses we are working to stop in communities all across the Eastern District. Each of these cases is heartbreaking and each requires a strong response if we are to punish and, most importantly, deter others who may harm our children in the future. This offender is particularly concerning because of his role as a teacher. This sentence ensures that he will be held accountable and will not harm children in the future. And we hope this message goes out to others that this type of crime must stop.”
This case is 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 initiative, go to www.projectsafechildhood.gov.
Robert J. Higdon, 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 Federal Bureau of Investigation and Cary Police Department investigated the case. Assistant U.S. Attorney Jake D. Pugh 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-0231-FL.
Drug Trafficker Who Transported More Than a Kilogram of Methamphetamine from South Carolina Received 210 Months in Federal PrisonRead the Press Release
WILMINGTON, N.C. – Neville Singleton, 38, of North Charleston, South Carolina was sentenced on February 17, 2021, to 210 months imprisonment for conspiracy to possess with intent to distribute and distribution of 500 grams or more of methamphetamine, distribution of 50 grams or more of methamphetamine and aiding and abetting, and possession with intent to distribute 500 grams or more of methamphetamine and aiding and abetting.
The investigation, along with evidence presented in court, revealed that on August 29, 2019, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made a controlled purchase of 51 grams of actual methamphetamine at a restaurant in Wilmington, North Carolina from Sean Thomas and Singleton. Following the drug deal, Singleton and the undercover officer discussed having Singleton provide him with larger amounts of methamphetamine in the future. Singleton indicated that the methamphetamine was coming from Charleston, South Carolina.
On August 29, 2019, ATF, with the assistance of the Brunswick County Sheriff’s Office, ordered a quantity of methamphetamine from Singleton and Thomas to be delivered to a hotel in Brunswick County. When Singleton and Thomas arrived in the hotel parking lot from Charleston, both men were arrested. Law enforcement searched the trunk and found 1,134 grams of actual methamphetamine. Between July 2019 and August 2019, Singleton possessed or distributed more than two and a half kilograms of actual methamphetamine into North Carolina and South Carolina.
Singleton had prior convictions for possession with intent to deliver cocaine and possession with intent to deliver cocaine in proximity of a school (2003); possession with intent to deliver cocaine (2004); possession with intent to deliver marijuana (2007); possession with intent to deliver or distribute cocaine, LSD or other drug; possession with intent to deliver or distribute a drug within close proximity of a school (2010); and possession with intent to distribute marijuana (2016). Singleton was on probation at the time he committed the crimes that brought him into federal court.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing before Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Brunswick County Sheriff’s Office took part in the investigation. 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. 5:20-CR-00005-M.
Defendant Sentenced to 72 Months Imprisonment for Trafficking MethamphetamineRead the Press Release
RALEIGH, N.C. – Paige Michelle Anderson, 29, from Ocean Isle Beach, NC was sentenced today to a total of 72 months in prison for conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture and substance containing methamphetamine from April to June 2020; possession with the intent to distribute 50 grams or more of a mixture and substance containing methamphetamine on June 1, 2020; and possession with the intent to distribute 50 grams or more of a mixture and substance containing methamphetamine on June 14, 2020.
According to court documents and other information, beginning in April 2020, agents with the Federal Bureau of Investigation and others with the Bladen County Sheriff’s Office in Elizabethtown, North Carolina learned through a confidential source that Anderson was part of a drug trafficking organization selling methamphetamine in Bladen County. During the week of May 30, 2020, law enforcement received information that Anderson would be traveling to Sanford, North Carolina to pick up methamphetamine with an associate. Law enforcement tracked Anderson’s trip and on June 1, 2020, conducted a traffic stop on the car in which Anderson was a passenger. During a search of the car, law enforcement found 90.7 grams of methamphetamine, a firearm, and $1,189.00 in currency. On June 14, 2020, while monitoring Anderson’s movements, law enforcement noted Anderson once more traveled to Sanford. Upon her return, officers stopped Anderson’s car when she failed to stop at a stop sign. Anderson admitted that she had methamphetamine in the car. During the search of the car, officers found 222 grams of methamphetamine, a digital scale for weighing narcotics, and $536.00.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bladen County Sheriff’s Office and The Federal Bureau of Investigation investigated the case. Special Assistant U.S. Attorney Murphy Averitt prosecuted the matter.
This case is part of the Take Back North Carolina Initiative of The United States Attorney’s Office for the Eastern District of North Carolina. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00090-D.