Eastern District of North Carolina
Press releases recorded for this federal judicial district.
Rocky Mount Tax Return Preparer Pleads Guilty to Conspiracy and Filing False Tax ReturnsRead the Press Release
RALEIGH, N.C. – A Rocky Mount, NC woman pleaded guilty today to conspiracy to prepare and file false tax returns.
According to court documents, Priscilla Evans, 65 years old, conspired with others to file false tax returns for the 2013 through 2016 tax years for clients of Community Tax Services LLC located in Rocky Mount, North Carolina. Evans and her co-conspirators filed tax returns that claimed false education credits, among other illegitimate items, in order to fraudulently generate clients’ tax refunds. According to the IRS, the three-year scam resulted in a loss of more than $2 million in tax dollars. Evans pleaded guilty today to conspiracy to prepare and file false tax returns and faces up to five years imprisonment when she is sentenced during the court’s December 2020 term.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after U.S. Magistrate Judge Robert Jones accepted the plea. The Internal Revenue Service Criminal Investigations (IRS-CI) assisted in this investigation. Assistant U.S. Attorney Ethan Ontjes is prosecuting the case.
A copy of this press release is located on our website. 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. 4:19-CR-00077-2FL.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Henderson Man Sentenced to 14 Years for Drug DistributionRead the Press Release
RALEIGH, N.C. – A Henderson man was sentenced today to 168 months in prison for drug conspiracy and distribution offenses.
According to court documents, Steven Lamar Cooke, 38, managed a drug distribution conspiracy in 2017 that distributed heroin, cocaine, and fentanyl in the Henderson community. The drug-trafficking organization distributed primarily from a trailer on Brown Hills Road where customers sometimes had to wait in line for their turn to purchase drugs from Cooke or his associates. Cooke also pled guilty to personally distributing a quantity of heroin during the conspiracy time frame. Cooke had a history of other drug distribution-related offenses at the state level.
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 North Carolina State Bureau of Investigation, Warren County Sheriff’s Office and the Franklin County Sheriff’s Office investigated the case and Assistant U.S. Attorney Lucy Brown 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. 2:19-CR-2-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH, N.C. – A federal grand jury returned indictments charging Julian Arias-Rodriguez, age 21, of Mexico and Jorge Patricio-Ocampo, age 35, of Mexico, with illegal reentry of a removed alien.
If convicted of illegal reentry, Arias-Rodriguez, previously deported four times and found in Harnett County, and Patricio-Ocampo, previously deported twice and found in Wake County would face a maximum imprisonment term of two years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Attorney Warns Public About Fake Mask “Exemption” DocumentsRead the Press Release
RALEIGH, N.C. – United States Attorney Robert J. Higdon, Jr. advised the public today that cards and other documents bearing the U.S. Department of Justice seal and claiming that individuals are exempt from mask requirements are fraudulent.
There have been reports of individuals in North Carolina and other parts of the country creating cards or other documents claiming that the bearer of the card is exempt from mask requirements. Some versions of these cards threaten businesses or organizations with fines if they take steps to require patrons to wear masks. In an effort to make the cards or documents appear legitimate, fraudsters may include the U.S. Department of Justice’s seal or include other threatening language. The Department of Justice is also aware of efforts by some to sell these fake cards to members of the public.
The public should take note that the Department did not issue these documents, and the Department does not endorse them. Furthermore, the Department has not granted permission for the use of its seal for this purpose, and misusing the Department seal is a federal crime.
"During this pandemic, false information—and fake cards like these—do a grave disservice to us all as we try to understand and follow the public-health measures our governments have ordered,” said U.S. Attorney Higdon. “The public should be aware that these cards are fake and rest assured that we will investigate those who are knowingly creating or peddling these fraudulent cards to the unsuspecting public.”
A copy of this press release is located on our website.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Army Soldier Sentenced to Life in Prison for Aggravated Sexual AssaultRead the Press Release
A U.S. Army soldier was sentenced today to life in prison for aggravated sexual assault of a minor, Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Robert J. Higdon Jr. of the Eastern District of North Carolina announced.
Daniel Kemp Sr., 51, of Cameron, North Carolina, pleaded guilty on Dec. 11, 2019, to one count of aggravated sexual assault of a minor before U.S. District Court Chief Judge Terrence W. Boyle of the Eastern District of North Carolina, who sentenced Kemp Sr. earlier today and remanded him to the custody of the U.S. Marshals Service.
According to facts presented in the guilty plea hearings, Kemp Sr. was employed by the U.S. Army as an active duty member when he forcibly raped a minor victim. After an investigation into the sexual assault was underway, his wife, Shanynn Kemp, intentionally harassed and dissuaded a witness from disclosing to law enforcement information about the sexual offense.
The investigation of the case was conducted by U.S. Army Criminal Investigation Command and the FBI. This case is being prosecuted by Trial Attorney Kaylynn Foulon of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Charity Wilson of the U.S. Attorney’s Office in the Eastern District of North Carolina.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
U.S. Army Soldier Sentenced to Life in Prison for Aggravated Sexual AssaultRead the Press Release
A U.S. Army soldier was sentenced today to life in prison for aggravated sexual assault of a minor, Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney Robert J. Higdon Jr. of the Eastern District of North Carolina announced.
Daniel Kemp Sr., 51, of Cameron, North Carolina, pleaded guilty on Dec. 11, 2019, to one count of aggravated sexual assault of a minor before U.S. District Court Chief Judge Terrence W. Boyle of the Eastern District of North Carolina, who sentenced Kemp Sr. earlier today and remanded him to the custody of the U.S. Marshals Service.
According to facts presented in the guilty plea hearings, Kemp Sr. was employed by the U.S. Army as an active duty member when he forcibly raped a minor victim. After an investigation into the sexual assault was underway, his wife, Shanynn Kemp, intentionally harassed and dissuaded a witness from disclosing to law enforcement information about the sexual offense.
The investigation of the case was conducted by U.S. Army Criminal Investigation Command and the FBI. This case is being prosecuted by Trial Attorney Kaylynn Foulon of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Charity Wilson of the U.S. Attorney’s Office in the Eastern District of North Carolina.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Labor Union President Sentenced for Embezzlement of Union AssetsRead the Press Release
RALEIGH, N.C. – A Bladenboro man was sentenced today to 14 months in prison and ordered to pay $213,201.05 in restitution for Conspiracy to Commit Embezzlement of Labor Union Assets, and Embezzlement of Labor Union assets.
According to court documents, Keith Alan Ludlum, 48, served as President of Local 1208, a Bladenboro, NC chapter of the United Food and Commercial Workers International Union (“UFCW”). Local 1208 encompasses North and South Carolina and is has approximately 3600 active members.
In 2014, the UFCW initiated an audit of Local 1208 after receiving complaints from union members regarding the theft and misuse of union funds by Ludlum and then-Secretary/Treasurer Terry Slaughter. The audit and a subsequent criminal investigation revealed that between from January 2012 through March 2015, Ludlum embezzled approximately $136,202.29 from the union by receiving more than 20 unauthorized checks and making 420 unauthorized purchases with his union debit card. Some of the purchases included vacations, hunting supplies, firearms, ATVs, childcare, medical appointments, ATM withdrawals, personal car insurance, restaurants, and rental cars. In addition, Ludlum made at least 150 unauthorized check payments totaling $76,998.76 to family, friends and other union members. During the same period, Slaughter embezzled $62,315.38, which included checks for unauthorized salary and travel reimbursement and 161 charges to a Local 1208 debit card.
On February 19, 2019, Slaughter pled guilty to Embezzlement of Labor Union Assets. On February 26, 2020, he was sentenced to 6 months custody, 3 years supervised release, and ordered to pay $62,315.38 restitution.
H. Craig Neel, District Director, of the Office of Labor-Management Standards (OLMS) stated: “Safeguarding financial integrity and combating financial malfeasance in labor unions is a very high priority for OLMS. Ludlum betrayed the trust of the union membership who rightfully expected him, as a union official, to protect and safeguard their union’s funds and assets. The financial malfeasance was discovered by the local union and reported to OLMS. OLMS and the U.S. Attorney’s Office were able to fully investigate and bring about justice. This sentencing sends a clear message that OLMS and the U.S. Attorney’s Office will fully investigate and seek justice when anyone attempts to use their union position for personal financial gain at the expense of union members.”
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle. The United States Department of Labor, Office of Labor Management Standards investigated the case and Assistant U.S. Attorney Toby Lathan prosecuted the case.
A copy of this press release is located on our website. 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. 7:19-cr-00068-BO.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Raleigh Man Sentenced to More Than 10 Years for Fiddle Stix RobberyRead the Press Release
GREENVILLE, N.C. – A Raleigh man was sentenced today to 130 months’ imprisonment for robbing the Fiddle Stix Convenience Store located on Capital Boulevard in Raleigh and for illegally possessing a firearm in furtherance of his robbery.
According to court documents, Ramadhan Jaabir Justice, 25, was named in a three-count Indictment filed in the Eastern District of North Carolina on October 2, 2019. The Indictment charged Hobbs Act Robbery, Brandishing a Firearm in Furtherance of a Crime of Violence and Possession of a Firearm by a Convicted Felon. On January 13, 2020, the defendant pled guilty to Hobbs Act Robbery and Brandishing a Firearm in Furtherance of a Crime of Violence.
In the early morning hours on March 6, 2019, the Raleigh Police Department (RPD) responded to an armed robbery call at the Fiddle Stix Convenience Store located on Capital Boulevard. Upon their arrival, RPD detectives met with the store clerk (victim) and learned that two individuals entered the store. One male went to the restroom while the second male remained in the store area. While both men were in the store, the victim exited the enclosed cash register area and proceeded to the restroom. Upon the victim’s return to the enclosed cash register area, one of the individuals, later identified as Justice, lowered a black mask over his head, brandished a pistol, and prevented the victim from entering the secured enclosed area.
According to the victim, Justice and the second unknown individual asked where the money was kept, and he told them. The victim was forced into the back office and was told to sit on the floor in the corner of the back office until Justice and his partner left the store. A review of the surveillance footage confirmed that Justice possessed a handgun during the robbery. An inventory of the money taken during the robbery confirmed that $3,291.00 was taken from the store.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Senior U.S. District Judge Malcolm J. Howard. The Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Raleigh Police Department (RPD) investigated the case and Assistant U.S. Attorney Daniel W. Smith 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-00406-H.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Department of Justice Awards $2.2 Million for Innovative Community Policing ProjectsRead the Press Release
RALEIGH, N.C. – The Department of Justice today announced $2.2 million in grant funding to law enforcement agencies and stakeholders through the Department’s Office of Community Oriented Policing Services (COPS Office) Community Policing Development (CPD) Microgrants Program. COPS Office Director Phil Keith announced 29 awards with award amounts ranging from $15,090 to $100,000.
In our State, the North Carolina Department of Public Safety will receive $99,850 for its Officer Safety and Wellness Project.
Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina commented: “The funds used to support North Carolina’s Officer Safety and Wellness Project couldn’t come at a more important time. As we work to ensure that our law enforcement is properly supported, officer safety and wellness is a critical part of that effort.”
“The CPD Microgrants Program is a critical resource to advance innovative community policing projects across the country,” said Director Keith. “These strategic investments from the COPS Office pay huge dividends to state and local law enforcement agencies and the communities that they serve.”
CPD Microgrants Program funds are used to develop the capacity of local, state, and tribal law enforcement agencies to implement community policing strategies. Applicants were invited to propose demonstration or pilot projects to be implemented in their agency that offer creative ideas to advance crime fighting, community engagement, problem solving, or organizational changes to support community policing in one of the following areas:
- Human Trafficking
- Meeting Rural Law Enforcement Challenges
- Officer Safety and Wellness
- Recruitment, Hiring, and Retention
- School Safety
- Staffing and Allocation Studies
- Victim-Centered Approaches
- Violent Crime
- Youth Engagement
Funding through this program is available for the first time since 2018, following the successful removal of a nationwide injunction. These awards are being announced at a critical time for our country, when community policing strategies are very much needed to improve police and community relations.
The complete list of awards can be found here https://cops.usdoj.gov/pdf/2020AwardDocs/cpdmicrogrants/Award_List.pdf. To learn more about CPD Microgrants, please visit https://cops.usdoj.gov/cpdmicrogrants. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Inmates Withdraw COVID-19 Class Action Lawsuit After Failing to Show BOP Violated Their Constitutional RightsRead the Press Release
RALEIGH, N.C. – Eleven inmates housed at the Federal Correctional Complex in Butner, North Carolina (“FCC Butner”) voluntarily dismissed their lawsuit against Federal Bureau of Prisons (“BOP”) officials seeking release from prison as a result of the threat of the COVID-19 pandemic.
According to court documents, the federal inmates, who are represented by several advocacy groups, filed a petition for writ of habeas corpus, temporary restraining order and preliminary injunction on behalf of themselves and a purported class of current and future medically vulnerable inmates. The inmates alleged violations of their Eighth Amendment rights related to FCC Butner's response to the COVID-19 crisis, and sought relief including mass release or transfer of inmates from FCC Butner in order to facilitate social distancing. BOP officials filed substantial responses detailing the significant steps BOP and FCC Butner have taken to manage the crisis at FCC Butner.
On June 11, 2020, United States District Court Judge Louise W. Flanagan denied the inmates’ motion for a temporary restraining order and preliminary injunction, finding that the BOP officials made reasonable efforts toward the goals of preventing unnecessary illness and death and slowing the spread of the virus, that the claims were not appropriate under a habeas petition, and even if they were, the inmates failed to show a likelihood of success on the merits or that equity and public interests favor a temporary restraining order. (See attached order). On Monday, the inmates filed a stipulation of dismissal essentially withdrawing their remaining claims.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina commented: “Effectively managing prisons is a complex and difficult job on any day, but especially so in the midst of a global pandemic which affects so many people both inside and outside of the prison system. We are gratified that the court, in its ruling denying the inmates’ request for a temporary restraining order and preliminary injunction, recognized the efforts that officials at FCC Butner have made to minimize the risk of virus infection to the prisoners while doing their usual excellent job at maintaining order and ensuring the safety of the public in operating these critical facilities. I fully support the professional way in which that the FCC Butner officials continue to maintain the safety and security of the individuals housed within their institutions and the responsible manner in which they are managing the COVID-19 crisis.”
Special Assistant U.S. Attorneys Michael Bredenberg, Genna D. Petre, Christina Kelley, Mallory Brooks Storus, and Assistant U.S. Attorney Joshua Rogers defended the case on behalf of the BOP officials.
A copy of this press release is located on our website. 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-HC-02088-FL.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Jeffory Jaelyn Lee of Wilmington Receives 9 Years in Federal PrisonRead the Press Release
WILMINGTON, N.C. – A Wilmington man was sentenced to 108 months in prison for methamphetamine distribution and firearm charges.
According to court documents, Jeffory Jaelyn Lee, 31, was named in a Criminal Information filed on March 6, 2020 charging him with conspiracy to distribute and possess with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine and a quantity of cocaine; possession with the intent to distribute 50 grams or more of actual methamphetamine, aiding and abetting; possession with the intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine; and, possession of a firearm in furtherance of a drug trafficking crimes. On March 31, 2020, Lee pled guilty to all four counts of the Criminal Information.
According to the investigation, on August 28, 2019, a trooper with the North Carolina State Highway Patrol investigated a traffic accident on the shoulder of I-40 in Pender County, NC. Lee was a passenger in one of the vehicles involved in the accident. A search of Lee’s vehicle found a case containing approximately 74.63 grams of actual methamphetamine. On February 14, 2020, law enforcement officers in Wilmington searched Lee’s residence and found 205 grams of methamphetamine and other narcotics. In addition, a Glock .45 caliber firearm was found in close proximity to the narcotics.
This case is part of an extensive Organized Crime Drug Enforcement Task Force (OCDETF) investigation led by the Drug Enforcement Administration entitled “Operation Jellyfish.” This investigation is focused on a drug trafficking organization operating in Eastern North Carolina and including New Hanover County.
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.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Richard E. Myers II. The Drug Enforcement Administration, New Hanover County Sheriff’s Office, Pender County Sheriff’s Office and North Carolina Highway Patrol investigated the case and Special Assistant U.S. Attorney Murphy Averitt prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-cr-00038-M.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Wilson County Man Sentenced to 15 years for Firearms OffensesRead the Press Release
RALEIGH, N.C. – A Wilson County man was sentenced today to 180 months in prison and 5 years of supervised release for firearms offenses related to drug dealing.
According to court documents, Kendrick Taiwan Taylor, 43, was initially charged with six counts: Counts One-Three charged distribution of crack, Count Four charged possession with intent to distribute crack, cocaine, and marijuana, Count Five charges felon in possession of a firearm, and Count Six charged possession of a firearm in furtherance of a drug trafficking crime. Taylor pled guilty to Counts Five and Six on January 8, 2020.
In January, 2019, the Wilson County Sherriff’s Office initiated a drug investigation into Taylor after learning he was selling crack from his residence in Elm City, NC. Investigators conducted several controlled purchases of crack from Taylor and, as a result, obtained a search warrant for Taylor’s home that was executed on March 20, 2019.
During the search of Taylor’s residence officers located over 1,200 grams of marijuana, more than 7 grams of cocaine, more than 9 grams of crack, over $16,000, 5 loaded rifles (two of which were assault-style rifles with high capacity magazines), 3 loaded handguns (one with an obliterated serial number), as well as drug paraphernalia; digital scales; and assorted ammunition.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle. ATF and Wilson County Sheriff’s Office investigated the case and Assistant U.S. Attorney Bryan Stephany 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-00155-BO.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Greenville Ambulance Company Manager Sentenced to Prison in Multimillion Dollar Fraud and Identity Theft SchemeRead the Press Release
RALEIGH, N.C. – Today a federal judge sentenced a Greenville ambulance company manager to 64 months in prison and 3 years of supervised release on charges of Conspiracy to Commit Health Care Fraud and Aggravated Identity Theft. He was also ordered to pay $4,726,464.42 in restitution.
United States Attorney Robert J. Higdon, Jr. stated, “Medicare entrusts its providers to only bill taxpayers for the work that they actually perform. In this case, the defendants blatantly abused that trust, stealing millions from taxpayers in the form of fake ambulance services. This case is a reminder to the public that the price of these crimes is spending years in federal prison.”
According to the Criminal Information and evidence discussed at the sentencing hearing, Davon Terrell Henderson, 32, of Greenville, worked as the manager of Med-1 Interfacility Care, LLC (“Med-1”), an ambulance transportation company, and was also the owner of a wheelchair transport company named H&H Transport Services, LLC (“H&H”).
Between 2014 and June of 2016, Henderson and billing clerk Pamela Dewitt Babb worked together to fraudulently bill Humana, a Medicare Part C contractor, for more than $6.1 Million dollars in fictitious ambulance services. To carry out the crime, Henderson paid others to steal Humana beneficiaries and Medicare identification numbers, mostly from assisted living facilities. Henderson and Babb then used the identities of the beneficiaries to “back-bill” Humana for the fake services. In total, Henderson and Babb reaped $4.7 Million from the fraud scheme, which they split amongst themselves.
Babb was previously sentenced in January of 2020 to serve 72 months in federal prison.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The United States Department of Health and Human Services, Office of the Inspector General, handled the investigation of this case, and Assistant U.S. Attorney William M. Gilmore served as the prosecutor.
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. 4:19-cr-0061-BO
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Fayetteville Man Pleads Guilty to Stealing Postage from Law Firm to File Fraudulent ClaimsRead the Press Release
WILMINGTON, N.C. – A federal judge accepted a guilty plea today from a Fayetteville man who was charged with Conspiracy to Defraud the United States on Claims.
According to the Criminal Information, Casey Tyler Smith, 27, of Fayetteville, worked in Wilmington at a law firm identified in the Criminal Information as “B&S.” In the course of his work at the law firm, Smith had access to the firm’s Pitney Bowes postal meter.
According to the Criminal Information, Smith accessed the firm’s postal meter and fraudulently generated thousands of dollars in postage on the firm’s postal account. He and others then took the stolen postage to a post office where Smith filed fraudulent postal refund claims, alleging that the postage had been lost or stolen. In fact, the postage was used to generate fraudulent proceeds for Smith. The post office then provided refunds on the postage to Smith in the form of postal money orders, both in his own name and in the names of others.
The Criminal Information further alleges that Smith and others then took the postal money orders to banks to convert them into cash.
In total, Smith caused 113 fraudulent postal claims to be filed, resulting in more than $80,000 in losses to B&S.
At sentencing, Smith faces up to 10 years in prison and 3 years of supervised release for committing the offense of Conspiracy to Defraud the United States on Claims.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The United States Postal Inspection Services handled the investigation of this case, and Assistant U.S. Attorney William M. Gilmore is prosecuting the case.
A copy of this press release is located on our website.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Two Fayetteville Men Indicted for the Arson of Fayetteville’s Market HouseRead the Press Release
WILMINGTON, N.C. – A federal grand jury returned indictments today charging two Fayetteville men with the arson of the City of Fayetteville’s Market House, a National Historic Landmark.
According to the indictments, Charles Anthony Pittman, 32, and Andrew Salvarani Garcia-Smith, 32, took part in the burning of the Market House after the peaceful protests following the death of George Floyd turned violent.
Several local news outlets filmed Pittman carrying around a red gasoline container on the second story of the Market House. Pittman proceeded to pour the gasoline throughout the second story of the Market House, which was then set on fire. Prior to any protests, Pittman posted a video on social media discussing his plans to bring the Market House down.
Authorities identified Garcia-Smith after he reported to a local hospital with several burn injuries as a result his actions. Garcia-Smith threw a bottle of burning liquid into the Market House. As he did so, the burning liquid spilled back onto him—setting Garcia-Smith’s hair and clothes ablaze. A social media video of the incident went viral, as several news outlets showed Garcia-Smith running down the steps of the Market House engulfed in flames.
Pittman and Garcia-Smith are each charged with the malicious burning of a building owned or possessed by an entity receiving Federal assistance. If convicted, both Pittman and Garcia-Smith face mandatory minimum sentences of 7 years in prison.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fayetteville Police Department are investigating the case and Assistant U.S. Attorneys Chad Rhoades and J.D. Koesters are prosecuting the case.
A copy of this press release is located on our website. 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-mj-01575-JG for Pittman and 5:20-mj-01574-JG for Garcia-Smith.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Manager of Zebulon Credit Union Pleads Guilty to EmbezzlementRead the Press Release
WILMINGTON, N.C. – A Wake Forest man pleaded guilty today to theft and embezzlement from a credit union.
According to court documents, Johnnie Earl Harrell, 47, served as branch manager of a credit union located in Zebulon, NC. From 2008 to 2019, Harrell exploited his position to steal and embezzle at least $645,000 in funds belonging to the credit union and its customers. Among Harrell’s victims were individuals convinced by Harrell to rollover existing retirement accounts into annuities. Harrell never purchased the annuities, but instead converted the funds to personal use. Harrell prepared fraudulent annuity account statements that were periodically presented to victims to preclude detection of the theft.
Harrell pleaded guilty to theft and embezzlement from a credit union and faces up to thirty years in prison when he is sentenced during the court’s November or December term.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. Magistrate Judge Robert Jones accepted the plea. The United States Department of Homeland Security, the North Carolina Department of Insurance Criminal Investigations, and the Zebulon Police Department are investigating the case. Assistant U.S. Attorney Toby Lathan is prosecuting the case.
A copy of this press release is located on our website. 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-00152-FL.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Department of Justice Announces $42 Million to Combat Illegal Manufacture and Distribution of Methamphetamine and OpioidsRead the Press Release
RALEIGH, N.C. – The Department of Justice‘s Office of Community Oriented Policing Services (COPS Office) today announced nearly $42 million in funding to support state-level law enforcement agencies in combating the illegal manufacturing and distribution of methamphetamine, heroin, fentanyl, carfentanil, and prescription opioids.
The North Carolina Department of Public Safety will receive $2,062,770.00 million in funding to support investigations into trafficking in heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.
“The harms caused to our communities by the opioid epidemic and methamphetamine are devastating, far-reaching, and in many cases irreversible. These funds, made available by the COPS office, will greatly assist North Carolina’s law enforcement in investigating and combatting those who distribute opioids and demonstrate a reckless disregard for human life and the safety of our communities,” stated United States Attorney Robert J. Higdon, Jr.
“The scourge of opioid and methamphetamine use continues to take a devastating toll on our nation’s communities,” said COPS Office Director Phil Keith. “By providing these resources to law enforcement to help combat the further spread, the COPS Office is demonstrating our commitment to this Administration’s priority of reducing drug use and protecting our citizens from this public health and safety crisis.”
“We are extremely grateful for this important funding which will enable us to enhance our law enforcement efforts at combating illegal drug trafficking and stemming the tide of dangerous drugs in our communities. These grant funds will further enable the State Bureau of Investigation to fulfill their public safety mission by leveraging important partnerships and maintaining their investigative expertise,” said Public Safety Secretary Erik A. Hooks.
Drug overdose deaths and opioid-involved deaths continue to increase in the United States. Deaths from drug overdose are up among both men and women, all races, and adults of nearly all ages, with more than three out of five drug overdose deaths involving an opioid. More than 130 people die every day in the United States after overdosing on opioids, while methamphetamine continues to be one of the most commonly misused stimulant drugs in the world and is the drug that most contributes to violent crime.
The COPS Office is awarding more than $29.7 million in grant funding to 14 state law enforcement agency task forces through the Anti-Heroin Task Force Program (AHTF). AHTF provides three years of funding directly to state-level law enforcement agencies with multijurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high per capita rates of primary treatment admissions for heroin, fentanyl, carfentanil, and other opioids. This funding will support the location or investigation of illicit activities through statewide collaboration related to the distribution of heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids. The North Carolina Department of Public Safety will receive $1,062,770.00 in AHTF funding.
Through the COPS Anti-Methamphetamine Program (CAMP), the COPS Office is also awarding $12 million to 12 state law enforcement agencies. These state agencies have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures. State agencies are being awarded three years of funding through CAMP to support the location or investigation of illicit activities related to the manufacture and distribution of methamphetamine, including precursor diversion, laboratories, or methamphetamine trafficking. The North Carolina Department of Public Safety will receive $1,000,000.00 under the CAMP Program.
The AHTF and CAMP funding has a tremendous impact on state investigative and seizure work. During the five-month period between October 2019 and February 2020, current AHTF grantees reported the seizure of over $4 million in cash and 1,213 firearms. Similarly, for CAMP, grantees reported seizures of more than $7 million in cash and 1,577 firearms.
The complete list of Anti-Heroin Task Force Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/ahtf-award
The complete list of COPS Anti-Methamphetamine Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/camp-award
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 135,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Wilson Man Sentenced to 10 Years for Ammunition Charge Related to Shooting at Highway PatrolmanRead the Press Release
RALEIGH, N.C. – A Wilson man was sentenced today to 120 months in prison for unlawfully possessing ammunition.
According to court documents, on January 14, 2019, North Carolina State Highway Patrol Trooper Daniel Harrell conducted a traffic stop on a vehicle driven by John David Jones, 38, for illegally towing another vehicle. During the traffic stop, Jones fired several 9mm rounds into the windshield of Trooper Harrell’s patrol car, striking Trooper Harrell in the cheek and forehead. Jones fled the scene and Trooper Harrell pursued him until Jones made a U-Turn and rammed Trooper Harrell’s patrol vehicle head-on. At the scene of the shooting, investigators recovered multiple 9mm shell casings, and the defendant’s DNA was found on a recovered shell casing.
Following the sentencing hearing, Mr. Higdon commented: “Every day law enforcement officers across the Eastern District face unknown risks as they attempt to deal with those among us who will not follow the law. Trooper Harrell’s experience with the defendant in January of 2019 is our worst nightmare: he stops a vehicle for a relatively minor suspected violation, he finds himself fighting for his own life as he takes gunfire to the face. We are so grateful that Trooper Harrell survived and has overcome his injuries; but his experience reminds us of the inherent danger law enforcement faces every day and why my office and the U.S. Justice Department are proud to stand with Trooper Harrell who bravely faced this threat for all of us.”
Colonel Glenn M. McNeill of the North Carolina Highway Patrol stated: “Today, several members of the State Highway Patrol family stood alongside Trooper Daniel Harrell, as we collectively attended the sentencing hearing of his attacker. While the punishment imposed affords the Harrell family and law enforcement across our state a sense of closure, we cannot allow today’s court proceeding to overshadow Trooper Harrell’s heroic efforts. My continued hope is that our members will never face a cowardly act such as this and those wishing to do harm to a law enforcement officer understands their actions will not go unpunished. I am eternally grateful for the unwavering partnership among our federal partners from the US Attorney’s Office who worked tirelessly to ensure North Carolina remains a safe place to live.”
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.
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 Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), United States Marshals Service, North Carolina State Highway Patrol, North Carolina State Bureau of Investigation, Wilson County Sheriff’s Office, Nash County Sheriff’s Office, and Greenville Police Department investigated the case and Assistant U.S. Attorney Chad E. Rhoades 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-00304-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Wilmington Man Sentenced for Illegally Possessing a Stolen FirearmRead the Press Release
RALEIGH, N.C. – A Wilmington man was sentenced today to 77 months in prison for illegally possessing a firearm.
Darrius Franklin Autry, 28, was named in a one-count Indictment filed in the Eastern District of North Carolina on December 3, 2019. The Indictment charged Possession of a Firearm by a Felon on May 15, 2019. Autry pled guilty on March 11, 2020, to the sole count of the indictment.
Court documents indicate that, on May 15, 2019, officers with the Clayton North Carolina Police Department conducted a traffic stop on a vehicle occupied by Autry and two other individuals. Officers approached the vehicle and detected a strong odor of marijuana coming from within the vehicle. Autry, who was seated in the back seat of the vehicle, told officers that he had a gun in his bag on the back seat. Officers subsequently seized Autry’s firearm that was loaded with 10 rounds of ammunition. Additionally, a weapon check on the firearm confirmed that it was stolen out of Durham, North Carolina.
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 Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Clayton Police Department (CPD) investigated the case and Assistant U.S. Attorney Daniel W. Smith 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-00477-D-1.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Fayetteville Probationer Sentenced to 41 Months for Possession of a FirearmRead the Press Release
RALEIGH, N.C. – A Fayetteville man was sentenced today to 41 months in prison for unlawfully possessing a firearm.
According to court documents, on June 26, 2019, North Carolina Probation Officers, supported by the Bureau of Tobacco, Alcohol, Firearms, and Explosives Agents, conducted a probation search at Johnathan Muhammed Martinez’s residence, as part of a larger probation operation known as Operation Zero Hour II. In Martinez’s closet, authorities found a Mossberg Shotgun with a pistol grip. Martinez was serving a 24-month state probationary sentence for a Felony Hit and Run conviction after a drug deal went awry.
Despite numerous attempts by Martinez to have others claim the firearm, both during arrest and while in custody, Martinez pled guilty to his Indictment on March 11, 2020. Noting Martinez’s obstructive behavior and numerous violations of the trust placed in him by previous courts, U.S. District Judge James C. Dever, III sentenced Martinez to the top of the advisory sentencing guideline range. The Court deemed this sentence appropriate to promote respect for the law and deter others from committing similar crimes.
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.
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 Bureau of Alcohol, Tobacco, Firearms, and Explosives, in support of North Carolina Probation and Parole authorities, investigated the case and Assistant U.S. Attorney J.D. Koesters prosecuted the case.
A copy of this press release is located on our website. 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-00461-D.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Rocky Mount Tax Return Preparer Pleads Guilty to Conspiracy and Filing False Tax ReturnsRead the Press Release
RALEIGH, N.C. – A Rocky Mount, NC woman pleaded guilty today to conspiracy to prepare and file false tax returns.
According to court documents, Bertha Battle, aka “Bug”, 40 years old, conspired with others to file false tax returns for the 2013 through 2016 tax years for clients of Community Tax Services LLC located in Rocky Mount. Battle and her co-conspirators allegedly filed tax returns that claimed false education credits, among other illegitimate items, in order to fraudulently generate clients’ tax refunds. The IRS total loss was 2.2 million dollars. Battle previously pled guilty to similar federal tax charges in 2009.
Battle pleaded guilty today to a conspiracy to prepare and file false tax returns and faces up to five years imprisonment when she is sentenced during the court’s November 2020 term.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after U.S. Magistrate Judge Kimberly Swank accepted the plea. The Internal Revenue Service Criminal Investigations (IRS-CI) assisted in this investigation. Assistant U.S. Attorney Ethan Ontjes is prosecuting the case.
A copy of this press release is located on our website. 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. 4:19-CR-00077-1FL.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Raleigh Man Sentenced to More Than 11 Years for Possessing a Firearm in Furtherance of His Drug SalesRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced today to 143 months in prison for illegally possessing a firearm and possessing with the intent to distribute marijuana, cocaine, crack, and heroin.
Jawone Reginald Bennett, 42, was named in a four-count indictment filed in the Eastern District of North Carolina on April 17, 2019. Count One charged Distribution of a Quantity of Cocaine Base (Crack); Count Two charged Possession with Intent to Distribute a Quantity of Marijuana, Cocaine, and 28 grams or more of Cocaine Base (crack); Count Three charged Possession of a Firearm by a Felon, and Count Four charged Possession of a Firearm in Furtherance of a Drug Trafficking Crime. On November 27, 2019, pursuant to a written plea agreement, the defendant pled guilty to Counts Two and Four.
Based upon to court documents, in August 2018, a drug investigation began focusing on Bennett after a confidential informant advised the Raleigh Police Department about Bennett being engaged in drug trafficking activities. On August 23, 2018, agents utilized a confidential informant to purchase crack cocaine from Bennett at a local hotel where he was staying. On August 24, 2018, a search warrant was executed on Bennett’s hotel room. Based on the sale of crack cocaine and the search warrant on Bennett’s hotel room, he’s accountable for possessing 59.83 grams of crack cocaine, 28.15 grams of cocaine powder, and 154.62 grams of marijuana. Additionally, Bennett was in possession of two firearms that he used to further his drug tracking sales.
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 Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Raleigh Police Department (RPD) 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. 5:19-cr-00171-D-1.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Raleigh Man Arrested for Setting Multiple Fires to Raleigh BusinessesRead the Press Release
RALEIGH, N.C. – A Raleigh man was arrested yesterday for setting fires inside two Raleigh businesses after a demonstration over the death of George Floyd in Minneapolis, Minnesota, Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina announced.
Richard Rubalcava, of Raleigh, North Carolina, was arrested by special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and is charged by complaint 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. Rubalcava will make his initial appearance June 19, 2020, by videoconference before U.S. Magistrate Judge Robert T. Numbers, II.
According to the complaint, 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.
Additionally on May 30, 2020, video surveillance from Budacai Restaurant located at 120 East Martin Street, Raleigh, was given to the Raleigh Police Department (RPD) in regards to the restaurant being looted and a fire being set inside. After reviewing the video surveillance, RPD identified one of the subjects that entered the business as Rubalcava. The video surveillance showed Rubalcava entering the restaurant three times. The second time Rubalcava entered he stole the cash register. The third time Rubalcava entered he attempted to set a plant on fire inside the restaurant. After the plant would not ignite, Rubalcava ignited a towel and places the burning towel on a countertop. Surveillance video from both fires shows Rubalcava wearing the same clothing. Rubalcava admitted to RPD officers that he set the fire inside of Budacai Restaurant.
The counts charged in the criminal complaint carry 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.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina credited the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Raleigh Police Department (RPD) with the investigation leading to today’s arrest. The government is represented by Assistant U.S. Attorney Daniel W. Smith of the of the U.S. Attorney's Office’s Criminal Division.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Raleigh Blood Gang Member Sentenced to 13 Years for Illegally Possessing a Firearm and a Variety of DrugsRead the Press Release
RALEIGH, N.C. – A Raleigh Blood gang member was sentenced today to 156 months in prison for illegally possessing a firearm and possessing with the intent to distribute marijuana, cocaine, crack, and heroin.
On December 5, 2019 Brooks Prentice Lesane, 37, was named in a three-count indictment filed in the Eastern District of North Carolina. Count One charged Possession With Intent to Distribute a Quantity of Marijuana, a Quantity of Cocaine, a Quantity of Cocaine Base (Crack), and a Quantity of Heroin; Count Two charged Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and Count Three charged Possession of a Firearm by a Felon on May 2, 2019. On March 16, 2020, pursuant to a written plea agreement, the defendant pled guilty to Counts One and Two.
Based upon court documents, on May 2, 2019, the Raleigh Police Department (RPD) began an investigation into the drug trafficking activities of Lesane, a known felon, after a confidential informant positively identified Lesane as trafficking various controlled substances, including marijuana, heroin, and cocaine base (crack), from his residence and throughout Raleigh. A search warrant was then executed at Lesane’s residence. RPD officers seized a 9mm handgun loaded with 9 rounds of ammunition, 19.42 grams of crack, 46.03 grams of heroin, 252.77 grams of marijuana, 20.43 grams of fentanyl mixed with heroin, and 8.97 grams of cocaine with a converted drug weight of 168.5 kilograms.
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 Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Raleigh Police Department (RPD) investigated the case and Assistant U.S. Attorney Daniel W. Smith prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00486-D-1.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Man Convicted of Intent to Distribute Cocaine to Johnston County Sentenced to More Than 19 YearsRead the Press Release
RALEIGH, N.C. – A Miami, Florida man was sentenced to 235 months in prison for Conspiracy to Distribute five (5) kilograms or more of Cocaine and Possession with the Intent to Distribute of five (5) kilograms or more of Cocaine.
Julio Rodriguez-Diaz, 50, was named in an Indictment filed on February 19, 2020 charging him with Conspiracy to Distribute and Possess with the Intent to Distribute five (5) kilograms or more of Cocaine and Possession with the Intent to Distribute five (5) kilograms or more of Cocaine. On March 5, 2020, after a four-day trial, Rodriguez-Diaz was convicted on all charges.
According to the investigation, Rodriguez-Diaz, was a member of the Gulf Cartel Drug Trafficking Organization and conspired with a co-defendant, Eugenio Carlos-Alfonso, who pled guilty on the day of trial, to distribute and possess with the intent to distribute fifty (50) kilograms of cocaine from South Texas to Johnston County, North Carolina via tractor-trailer. The fifty (50) kilograms were hidden in the trailer of the tractor-trailer when stopped by deputies with the Johnston County Sheriff’s Office for speeding. A law enforcement canine alerted on the trailer and as a result, two duffle bags containing the fifty (50) kilograms of cocaine were found and seized. Rodriguez-Diaz, a passenger, and the driver of the truck, Eugenio Carlos-Alfonso, were taken into custody, but claimed no knowledge of the drugs. Following their arrest, law enforcement learned that Rodriguez-Diaz and his co-defendant were couriers who worked for the Gulf Cartel. To date, this Organized Crime Drug Enforcement Task Force (OCDETF) operation, entitled Relentless Pursuit, has resulted in the indictment of eight defendants and the seizure of over sixty-seven (67) kilograms of cocaine and approximately $2.2 million in United States Currency.
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 Drug Enforcement Administration and the Johnston County Sheriff’s Office investigated the case and Assistant U.S. Attorneys Kelly L. Sandling and Lucy Brown prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00111-D-4.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Goldsboro Man Sentenced for Illegal Gun PossessionRead the Press Release
RALEIGH, N.C. – A Goldsboro man was sentenced today to 57 months in prison for being a felon in possession of a firearm.
According to court documents, Jesse Lee Dixon, III, 31, was caught carrying an illegal firearm while trespassing.
On April 28, 2019, a Goldsboro Police Department officer observed Dixon on property where Dixon was banned. The officer approached Dixon and saw a black handgun in a holster on Dixon’s hip. Dixon fled from the officer and threw the firearm, but officers located and arrested him and found the firearm nearby. Dixon has multiple prior felony convictions.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Goldsboro Police Department investigated the case.
A copy of this press release is located on our website. 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-410-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Department of Justice Announces Launch of Civil Rights Reporting PortalRead the Press Release
RALEIGH, N.C. - United States Attorney Robert J. Higdon, Jr. announces that the Department of Justice launched the Civil Rights Reporting Portal. This new online tool will make it easier for the public to report a civil rights violation.
“The department is committed to upholding the civil and constitutional rights of all people in the United States,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Reporting Portal will make it easier for the public to connect with us, which in turn makes us more effective at upholding these important rights. I encourage the public to use this portal to report civil rights violations.”
Mr. Higdon commented: “One of the most important responsibilities of the U.S. Department of Justice is to ensure that all Americans are treated fairly and equally and in conformity with our constitutionally-protected civil rights. But, in order to do that, we must have an open and effective dialogue with those who believe those rights may have been denied to them. This new tool will, we believe, help us to more effectively act to protect those rights. I urge everyone across the Eastern District to use this new tool whenever they believe their rights may have been denied.”
The new Civil Rights Reporting Portal – located at civilrights.justice.gov – will consolidate over 30 unique reporting pathways. The portal will dramatically ease the burden on victims of civil rights violations to identify the proper reporting channel. The form is fully accessible to people with disabilities. It is also available in both English and Spanish, with more languages to be added over the next year.
Individuals who believe that they may have been victims of civil rights violations should contact the department by visiting civilrights.justice.gov. When appropriate, the Civil Rights Division staff will refer complainants to other agencies that are responsible for handling specific types of complaints.
Individuals who believe they are a victim of criminal violation of their civil rights, such as misconduct by law enforcement officers, a hate crime, or human trafficking, should contact their local FBI office.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Department of Justice Observes the 15th Annual World Elder Abuse Awareness DayRead the Press Release
WASHINGTON – Today, U.S. Attorney Robert J. Higdon, Jr. joined Attorney General William P. Barr and the entire Department of Justice in observing the 15th Annual World Elder Abuse Awareness Day. The Department echoes voices around the world condemning elder abuse, neglect and exploitation.
The COVID-19 pandemic has created unprecedented challenges for our country and the world, but among those most severely affected by the threat of the novel virus are our senior citizens. During this time when seniors are most vulnerable and isolated from their families and loved ones by social distancing and quarantine restrictions, bad actors have immediately exploited this international tragedy to prey on the elderly through a whole host of scam and fraud schemes. As the world takes this day to remember the elderly during these uncertain times, the Department of Justice remains relentlessly committed, through its department-wide Elder Justice Initiative, to prevent and prosecute fraud on America’s seniors.
The Department will aggressively prosecute fraudsters exploiting the Covid-19 pandemic and targeting seniors offering them fake testing kits and fake help obtaining stimulus and Paycheck Protection Program Funds. On this day dedicated to recognizing our seniors, the Department of Justice sends a strong message that we continue the fight to keep seniors safe a top priority.
Mr. Higdon commented: “Today many of our senior citizens - the men and woman who paved the way for all of us – are being victimized by those who would steal their money, their years of support, their retirement, their piece of mind. There are so many scams out there targeting our seniors. Whether the scammers are trying to convince you that you have won a lottery or sweepstakes you did not enter or impersonating a grandchild in need, they are trying to get you to let your guard down so they can take your money. Please remember the old adage: ‘If it seems too good to be true, it is!’ Be skeptical, be cautious and remember there is no quick way to get rich. And, if you have questions or concerns, or if you think you have been scammed, please take advantage of the information and law enforcement contacts listed below.”
Earlier this year Attorney General Barr declared “Prevention and Disruption of Transnational Elder Fraud” to be an Agency Priority Goal, making it one of the Department’s four top priorities.
Major strides have already been made to that end:
- National Elder Fraud Hotline: 833-FRAUD-11
Earlier this year Attorney General Barr launched a National Elder Fraud Hotline. Staffed by experienced case managers who provide personalized support to callers, the hotline serves to assist elders and caretakers who believe they have been a victim of fraud by reporting and providing appropriate services.
- Transnational Elder Fraud Strike Force: Established in June 2019 to combat foreign elder fraud schemes, the Strike Force is composed of the Department’s Consumer Protection Branch and six U.S. Attorneys’ Offices along with FBI special agents, Postal Inspectors, and numerous other law enforcement personnel. Since its inception, prosecutors in Strike Force districts brought cases against more than 140 sweep defendants.
- Annual Elder Justice Sweep: In March of this year, the Attorney General announced the largest coordinated sweep of elder fraud cases in department history. The Department, together with every U.S. Attorney’s office, charged more than 400 defendants, causing over $1 billion in loss through fraud schemes that largely affected seniors including four cases in the Eastern District of North Carolina: U.S. v. Tony McElveen, 7:19-CR-73; U.S. v. Furman Ford, 5:19-CR-166, U.S. v. Murray Todd, 7:19-CR-32; and U.S. v. Anthony March, 5:19-CR-383.
- Money Mule Initiative: Since October 2018, the Department and its law enforcement partners began a concentrated effort across the country and around the world to disrupt, investigate, and prosecute money mule activity used to facilitate fraud schemes, especially those victimizing senior citizens. In 2019, actions were taken to halt the conduct of more than 600 domestic money mules, exceeding a similar effort against approximately 400 mules in the previous year.
- Holding foreign-based perpetrators and those that flee the United States accountable: Transnational criminal organizations are targeting our elder population in schemes including mass mailing fraud, grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, and technical-support scams.
- For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.
- National Elder Fraud Hotline: 833-FRAUD-11
Second Arrest Made for the Arson of Fayetteville’s Historic Market HouseRead the Press Release
RALEIGH, N.C. – A second suspect was arrested for taking part in the arson of Fayetteville’s Market House after an otherwise peaceful demonstration over the death of George Floyd in Minneapolis, Minnesota, turned violent, Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina announced.
ATF special agents and local law enforcement arrested Andrew Garcia-Smith, of Fayetteville, North Carolina, after Garcia-Smith was released from a hospital due to burn injuries sustained as a result of his involvement in the arson. Garcia-Smith is charged by complaint with one count of maliciously damaging property owned or possessed by an institution receiving federal financial assistance. Garcia-Smith made his initial appearance today before U.S. Magistrate Judge Robert T. Numbers, II.
According to the complaint, on May 30, 2020, several individuals set fire to the Market House in downtown Fayetteville. During the period of civil unrest, a Facebook Live video showed a male with long hair pulled into a bun, later identified as Garcia-Smith, picking up a bottle of burning liquid and throwing it into the Market House’s door. As Garcia-Smith threw the bottle, a portion of the burning liquid spilled back onto him, causing his hair and clothes to catch on fire. ATF special agents later identified Garcia-Smith as the suspect from the video when he reported to a local hospital with burn injuries shortly after the violent protest.
The count charged in the criminal complaint carries a statutory mandatory minimum term of imprisonment of seven (7) years, a maximum potential penalty of forty (40) years in prison, and a maximum fine of $250,000.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina credited the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Fayetteville Police Department (FPD), and FPD’s Violent Criminal Apprehension Team with the investigation leading to today’s arrest. The government is represented by Assistant U.S. Attorneys Chad Rhoades and J.D. Koesters of the U.S. Attorney's Office’s Criminal Division.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two Men Sentenced for Trafficking Multiple Kilograms of Cocaine for Mexico-Based OrganizationRead the Press Release
RALEIGH, N.C. – Two men with ties to a Mexican Drug Trafficking Organization, one residing in Graham, North Carolina and the other in Brownsville, Texas were sentenced today for their involvement in a Conspiracy to Distribute Cocaine and Marijuana.
Ramon Avila Davila, 35, and Irwin Abraham Baca, 31 were named in a three-count Superseding Indictment filed on April 9, 2019. Count 1 charged each defendant with Conspiracy to Distribute and Possession with Intent to Distribute 5 Kilograms or More of Cocaine and a Quantity of Marijuana. Count 2 charged Davila with Distribution of 500 Grams or More of Cocaine and a Quantity of Marijuana, Aiding, Abetting, and count 3 charged him with Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
On September 16, 2019, Baca pled guilty to Count One, and on December 11, 2019, Davila pled guilty to all three counts. Today, Baca was sentenced to 60 months in federal prison. Davila received a sentence of 160 months.
Davila and Baca were part of a drug trafficking organization based in Mexico. Davila resided in Graham, North Carolina, and distributed cocaine, methamphetamine, and marijuana in Eastern North Carolina. Baca regularly transported drugs and currency for the drug trafficking organization, and he also attempted to collect money for Davila.
On March 8, 2017, Baca was stopped for a traffic violation on Interstate 10 between San Antonio and Houston, Texas. Agents searched the vehicle and found four kilograms of cocaine. Following his arrest, Baca stated he had transported unspecified quantities of cocaine to North Carolina five times in the past.
On August 16, 2017, Baca was stopped in Houston after he exited a bus. Officers subsequently searched Baca’s bag and found $84,005 in U.S. currency. Upon questioning, Baca said the money did not belong to him, and that he had been paid $3,000 for transporting the money.
On December 18, 2017, agents seized 22 pounds of marijuana from Davila on its way to a confidential informant (CI). The CI indicated his source of supply was Davila, and he had received marijuana from Davila for the prior two years. Agents subsequently used the CI to make a controlled purchase of marijuana and cocaine from Davila.
On February 20, 2018, Davila was seen leaving his residence in Graham. Shortly thereafter, Davila was stopped for speeding. A search of his vehicle found 8 pounds of marijuana.
Following his arrest, investigators searched three residences associated with Davila. In a residence on Deep Creek Church Road in Burlington, North Carolina, officers found 457.1 grams of methamphetamine behind a void in the wall and a kilogram press with cocaine residue. Davila admitted that he had recently pressed five kilograms of cocaine. Officers then searched a Graham Street address in Burlington attributable to Davila and found 43 pounds of marijuana in the attic. Lastly, a search of his residence in Graham produced $14,670 in U.S. currency, a small amount of marijuana, and a .40 caliber handgun in the master bedroom.
In March 2018, Baca continued to contact the CI in an attempt to collect money owed to Davila for the marijuana and cocaine purchased on February 16, 2018. Agents subsequently determined Baca was staying at a local hotel in Laurinburg, North Carolina, and began surveillance there.
On March 22, 2018, officers searched Baca’s room and found cocaine. Agents then searched another residence in Maxton, North Carolina and seized approximately eight kilograms of cocaine that had been hidden in hollowed-out batteries, as well as more than $193,000 in currency.
Based on the above, between 2017 and 2018, Baca was accountable for almost 30 kilograms of cocaine and 2.5 kilograms of marijuana. Davila was accountable for more than 14 kilograms of cocaine, 457.1 grams of methamphetamine, and 41.5 kilograms of marijuana. Davila was a manager of criminal activity that involved five or more participants and he maintained premises for his controlled substance activities and imported drugs into the United States. Lastly, Davila possessed a firearm in furtherance of his drug trafficking crimes.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle. The Drug Enforcement Administration (DEA), the Robeson County Sheriff’s Office, the Houston Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) investigated this case and Assistant U.S. Attorney Scott A. Lemmon prosecuted the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). 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 case is part of the United States Attorney’s Office’s 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. For additional information about this initiative, click here https://www.justice.gov/usao-ednc/tbnc.
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-00112-BO.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Pitt County Man Sentenced for Possessing a Firearm as a FelonRead the Press Release
RALEIGH, N.C. – A Greenville man was sentenced today to 42 months in prison for possessing a firearm as a felon.
According to court documents, Donnie Devon Adams, Jr., 36, was found in possession of a loaded 9mm handgun during the execution of a search warrant at his home. Greenville Police Officers obtained the search warrant as part of an investigation into a domestic violence incident where Adams allegedly fired a handgun at his girlfriend inside his home on October 1, 2019. Adams had previously been convicted of Second Degree Murder in 2004 in Pitt County Superior Court.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, and Firearms and the Greenville Police Department investigated the case and Assistant U.S. Attorney John Parris 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. 4:19-cr-00073-BO-1.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years
Jacksonville Man Sentenced to 20 Years After Soliciting Minor for Sex and Child PornographyRead the Press Release
RALEIGH, N.C. – Morgan Jeffrey Shepard, 33, of Jacksonville was sentenced today to 240 months in prison for production of child pornography.
According to information provided to the court, in late 2016, the Wilmington Police Department received a report that a 14-year-old female was having a sexual relationship with an adult male from Jacksonville, NC. The minor victim told investigators that in September 2016, a man, later identified as the defendant Morgan Shepard, who was 29 years old at the time, had contacted her through social media and asked her to engage in sexual acts for money. On two occasions, he provided the victim with money and transportation to Wilmington in exchange for sex with him. In total, the victim had three or four sexual encounters with Shepard. He would not say his name, but she learned his name from mail in his house and was also able to identify him to law enforcement by his photo. In addition to the in-person encounters, Shepard paid the minor victim to send him nude photos on Snapchat.
Law enforcement searched the victim’s phone and found over a thousand text messages between her and Shepard. In one early exchange, Shepard mentioned that the victim was then 13 years old. In another, Shepard requested nude photos and offered “200 and smokes” if she would have sex with him in his car
In July of 2017, Onslow County executed a search warrant at Shepard’s Jacksonville residence. The layout and décor matched what the victim had drawn during a forensic interview. Law enforcement seized Shepard’s phone and a memory card within it. On the memory card, which also contained Shepard’s resume, they found a collection of 25 subfolders labeled with girls’ names. One folder was labeled with the victim’s name and contained multiple images and videos of her that constitute child pornography. Law enforcement identified multiple other girls whose nude photos were contained on the memory card, at least three of which also constituted child pornography.
In April 2018, while on bond for state charges related to the offense, Shepard (now 30 years old) used Instagram to contact a 13-year-old Craven County girl and offer her money for sex. The girl reported the conversation to her School Resource Officer, who referred it to the Craven County Sheriff’s Office. A detective then assumed the girl’s Instagram identity and continued the conversation. Shepard acknowledged the girl’s age, but still made plans to pick her up from a fast food restaurant and then go to a hotel for sex. He arrived as planned, but was met by officers. He attempted to flee and struck a police vehicle before being arrested.
Law enforcement obtained records of Shepard’s Instagram activity, which revealed that he had attempted to solicit no less than 78 young girls in the previous four months. Law enforcement successfully identified 13 of these girls and confirmed that all 13 were between 11 and 15 years of age. When girls had responded to an initial message about making money, Shepard would offer between $300 and $1,000 for sex or nude photos.
Mr. Higdon commented: “The facts of this case have become part of a frightening pattern: predator uses the internet to lure a young, vulnerable victim and sexually abuses them and exploits them through manufacturing pornography. Through aggressive prosecutions, we are working to stop this abuse and to prevent others from becoming victims. Parents, teachers, faith leaders – anyone with access to children – must join us in educating our children, monitoring their interaction with those who would prey upon them and oversee their online relationships. It is critical that we work together to protect our children.”
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle.
The Department of Homeland Security, the Onslow County Sheriff’s Office, the Craven County Sheriff’s Office, and the Wilmington Police Department investigated the case. Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
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. 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. 7:19-cr-0121-BO.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Inmate Sentenced to 30 Months for Possessing a Weapon in Butner PrisonRead the Press Release
RALEIGH, N.C. – An inmate housed at the Federal Correctional Complex in Butner, North Carolina (“FCC Butner”) was sentenced yesterday to 30 months of incarceration for possessing weapons inside the federal prison.
According to court documents, Gerald Wayne Timms, 59, was found by Federal Bureau of Prisons (“BOP”) staff to be in possession of multiple homemade sharpened objects on two separate occasions in May, 2019 and again in September, 2019. BOP staff found the weapons inside Timms’ assigned cell during routine searches. Timms was charged by way of a two count indictment for violation of 18 U.S.C. § 1791, possession of contraband in prison. On February 19, 2020, a jury found Timms guilty of both counts. Timms received 30 months on each count to be served concurrently.
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. BOP Special Investigative Services investigated the case and Special Assistant U.S. Attorneys Mallory Brooks Storus, Genna D. Petre, and Michael Bredenberg 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-00428-FL.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Alien Indicted on Illegal Reentry Charges and Illegal and Unlawful Alien in Possession of a FirearmRead the Press Release
GREENVILLE, N.C. – A federal grand jury returned an indictment today charging Erik Daniel Gonzalez-Ramirez, age 30, of Mexico, with illegal reentry and alien in possession of a firearm.
Therefore, if convicted, Gonzalez-Ramirez, previously deported three times and found in Brunswick County, would face a maximum imprisonment term of twelve years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. ICE’s Enforcement and Removal Operations and Homeland Security Investigations are investigating the case.
A copy of this press release is located on our website.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Knightdale Felon Found with Firearm After Suspected Drug Transaction SentencedRead the Press Release
NEW BERN, N.C. – Naeem Branch, 39, of Knightdale was sentenced today to 70 months in prison for being a felon in possession of a firearm and ammunition.
According to information provided to the court, on March 22, 2018, North Carolina Alcohol Law Enforcement (ALE) agents were conducting surveillance at the Pit Stop II, a convenience store on Capital Boulevard in Raleigh. Agents noticed a car at the back of the parking lot with two occupants who were leaning back in their seats. After ten minutes, a man, later identified as Branch, drove into the parking lot in a blue Sonata and parked beside the car with the two men. Agents watched Branch get in the back seat of the other car and lean forward as the two men leaned back. They appeared to exchange something, and branch immediately left the vehicle, with the total interaction taking approximately 45 seconds. Branch drove away, and believing they had witnessed a drug transaction, the agents conducted an investigatory traffic stop on him.
When agents asked for Branch’s license and registration, they noticed that his hands were shaking and that he seemed unusually nervous. When Branch leaned over to retrieve his registration, the agent saw a digital scale and glassine bag peeking out from Branch’s right jacket pocket. Branch proceeded to twice hand over irrelevant documents as his hands shook uncontrollably.
Agents ordered him from the car and detained him. Searching the car, they found small rocks of suspected crack cocaine on the car floor. And under the driver’s seat, they found a Ruger SR-9 nine millimeter handgun, loaded with sixteen rounds of ball ammunition. Branch could not legally possess firearms or ammunition due to prior felony convictions, including a 2015 conviction for possession of a firearm by a felon and a 2016 conviction for possession of cocaine.
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. Alcohol Law Enforcement and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) investigated the case, and 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. 5:18-cr-000453-FL.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Kinston Man Sentenced to 11 Years for Assault, Robbery and Firearm OffensesRead the Press Release
NEW BERN, N.C. – A Kinston man was sentenced today to 132 months in prison for his role in a violent assault and robbery of a confidential informant that resulted in assault, robbery, and firearm charges.
According to court documents, David Carr, 21, was charged with three counts: assaulting a person assisting a federal officer, robbery of money and property of the United States and brandishing a firearm during a federal crime of violence. Carr pled not guilty and went to trial, but was found guilty on all three counts on January 8, 2020.
On March 6, 2018, Carr and a co-defendant planned to sell four firearms to a confidential informant (CI) working with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The CI met with Carr to discuss the deal and Carr stated he needed to get two more firearms. Carr returned a short time later with his co-defendant and told the CI that they had drugs and the guns. Once the CI was in the car, he was held at gunpoint and threatened with Carr forcing a gun into the CI’s jaw and threatening to kill him. Carr and his co-defendant robbed the CI of $2,000.00 of ATF “buy money” and a cell phone. After a struggle, the CI was able to get out of the car and run from his assailants. The defendants immediately fled the scene. Carr was arrested the following day with the ATF buy money in his possession.
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. ATF and Kinston Police Department investigated the case and Assistant U.S. Attorney Bryan Stephany is handling the case of the government.
A copy of this press release is located on our website. 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. 4:19-CR-11-FL.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Fayetteville Man Sentenced to 16 Years for Drug and Weapons OffensesRead the Press Release
GREENVILLE, N.C. – A Fayetteville man was sentenced today to 192 months in prison for Possession with Intent to Distribute Heroin, Possession of Firearms by a Convicted Felon, and Possession of Firearms in Furtherance of a Drug Trafficking Crime.
According to court documents, Sedale Lee Council, 29, committed a series of drug and weapons related offenses in Fayetteville from January 2019 through his federal arrest in June of 2019. In January of 2019, investigators executed a search warrant at Council’s residence and recovered a firearm that Council used in the armed robbery and kidnapping of a Fayetteville man. In May of 2019, investigators searched Council’s residence in connection with an investigation into a shooting into an occupied dwelling. They recovered the handgun that was used in that shooting as well as an additional handgun and trafficking amounts of cocaine and heroin. Finally, in June of 2019, investigators located approximately one hundred grams of heroin and items used to package drugs for sale in Council’s possession.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Senior U.S. District Judge Malcolm J. Howard. The Fayetteville Police Department, Cumberland County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Drug Enforcement Administration investigated the case and Special Assistant U.S. Attorney Caroline Webb prosecuted the case.
A copy of this press release is located on our website. 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-00276-H.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Raleigh Man Arrested for Attempting to Set Fire to Raleigh Police Department VehicleRead the Press Release
RALEIGH, N.C. – A Raleigh man was arrested yesterday for attempting to set fire to a marked police vehicle in Raleigh after a demonstration over the death of George Floyd in Minneapolis, Minnesota, Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina announced.
Jabari Devon Davis, of Raleigh, North Carolina, was arrested by special agents of the ATF and is charged by complaint with one count of attempting to damage or destroy by fire a vehicle owned or possessed by an institution receiving federal financial assistance. Davis will make his initial appearance June 5, 2020, by videoconference before U.S. Magistrate Judge Robert T. Numbers, II.
According to the complaint, On May 31, 2020, at approximately 12:30a.m., a fire was discovered coming from the fuel filler area of a marked Raleigh Police Sport Utility Vehicle (SUV) at the Raleigh Police Southeast District Station located at 2800 Rock Quarry Road, Raleigh, North Carolina. Charring was also located in the landscaping behind the police vehicle. Video surveillance from the Southeast District Station was reviewed and showed a dark colored vehicle turn right on to New Birch Road. The vehicle proceeds on New Birch Road and stops behind the police vehicle that was damaged. The suspect vehicle was stopped for a short period of time and then proceeded east on New Birch Road. The vehicle proceeds to a roundabout and then heads back west on New Birch Road. The video surveillance then picks the vehicle back up turning left on Olde Birch Road. Within sixty seconds of the vehicle stopping on New Birch Road, a fire is observed coming from between two police vehicles.
A fingerprint had been lifted off of the Hennessey bottle recovered at the scene. A latent print examiner determined the print to be the left ring finger of Davis. 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 he is “pissed off with everything going on.”
The count charged in the criminal complaint carry 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.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina Credited the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Raleigh Police Department (RPD) with the investigation leading to today’s arrest. The government is represented by Assistant U.S. Attorney Daniel W. Smith of the of the U.S. Attorney's Office’s Criminal Division.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Raleigh Gang Member Receives Multiple Life Sentences for Rico Charge and Gang Related MurderRead the Press Release
RALEIGH, N.C. – A Knightdale man was sentenced today to three consecutive life sentences plus 240 months in prison for Conspiracy to Participate in a Pattern of Racketeering (RICO conspiracy), Murder in Aid of Racketeering, Murder with a Firearm During and in Relation to a crime of Violence, and Conspiracy to Distribute and Possess with the Intent to Distribute Controlled Substances.
According to court documents and evidence presented during the trial, Brandon Jowan Mangum, 31, was a high-ranking member of the Black Mob Gangstas (BMG) and Donald Gee Family (DFG) organization led by Demetrice R. Devine[1]. Devine also led the Gangsta Killer Bloods (GKB). The BMG/DGF are sets of the “Bloods” gang whose members committed various crimes in the city of Raleigh and especially in the area of Haywood Street. BMG/DGF members committed acts of violence to maintain membership and discipline, both within the gang and against non-gang members. Members committed acts of violence, including murder, attempted murder, and assaults, in order to maintain their positions within the gang and to be promoted within the leadership structure of the gang.
BMG/DGF, including its leadership, members and associates, constituted an “enterprise” as defined by Title 18, United States Code, Section 1961(4), that is, a group of individuals’ associated-in-fact. The enterprise constituted an ongoing organization, whose members functioned as a continuing unit for a common purpose of achieving the objectives of the enterprise. The enterprise was engaged in, and its activities affected, interstate and foreign commerce. The purpose of the BMG/DGF enterprise included the following:
a. Preserving and protecting the power, territory, reputation, respect, and profits of the enterprise through the use of intimidation, violence, threats of violence, assaults, murder and attempted murder;
b. Promoting and enhancing the enterprise and its members’ and associates’ activities, including, but not limited to, murders, attempted murders, robberies, drug distribution and other criminal activities;
c. Keeping the community and rivals in fear of the enterprise and its members and associates through violence and threats of violence;
d. Providing financial support and information to gang members, including those incarcerated in the United States;
e. Providing assistance to other gang members who committed crimes for and on behalf of the gang; and,
f. Hindering, obstructing, and preventing law enforcement officers from identifying, apprehending, and successfully prosecuting and punishing members of the enterprise.
BMG/DGF also held gang meetings to communicate gang information, to recruit members, issue punishment and collect gang dues from each BMG/DGF member for the benefit of the BMG/DGF organization. A portion of the dues were saved and utilized locally in what was referred to as a “community rent box” (CRB) while another portion was sent up the chain of command to gang leadership in Virginia and New York. BMG/DGF members were permitted to earn their money for dues through various methods, including, but not limited to, robberies, fraud schemes, and drug distribution. The monies were used locally for loans to gang members, for drug purchases, for firearm purchases, for gifts, and cellular telephones for high-ranking members who were in jail. Devine ordered that individuals selling narcotics in and around Haywood Street who were not BMG/DGF members were also required to pay gang dues in order to continue their drug sales in territory controlled by BMG/DGF. Individuals who did not pay gang dues risked being robbed, assaulted, or murdered.
Mangum along with other gang members conspired to shoot an 18-year-old rival gang member, Rodriguez Burrell, because Burrell refused to pay money to BMG/DGF. Burrell was shot multiple times in the presence of his father and died of his wounds.
In his leadership position, Devine directed members of his gang to shoot a 16-year-old rival gang member, Adarius Fowler, who died from gunshot wounds. He also ordered a gang member to shoot a person who provided information to law enforcement regarding the murder of Fowler. While this person was recovering from those gunshot injuries in the hospital, Devine ordered that the person be killed. Devine presided over a “beat-in” gang initiation of a BMG/DGF gang member and personally assaulted another gang member whose loyalty he questioned. Devine conspired with other gang members to silence and threaten gang members that had been provided subpoenas to testify in a federal proceeding.
Devine and Mangum both sold drugs on behalf of BMG/ DGF. Specifically, the jury found Mangum guilty of conspiracy to distribute and possession with the intent to distribute a quantity of cocaine and marijuana.
Devine was sentenced on April 22, 2020 to four consecutive life sentences, followed by 240 months imprisonment.
Mr. Higdon commented: “Today, finally, justice was served for Rodriguez Burrell and his family. Today, one of his murderers was sentenced to multiple life terms in prison. Brandon Mangum and the gang members he led, literally executed Mr. Burrell in cold blood on the front porch of his father’s house because he dared to refuse to follow the rules of the Bloods gang which controlled and terrorized his neighborhood. I want to thank and commend the Federal Bureau of Investigation and the Raleigh Police Department because, as the Court pointed out, they have diligently and faithfully worked for ‘11 years and 11 days’ to bring Rodriguez Burrell’s murders to justice and to end the ‘decades of terror’ the Bloods brought to areas of southeast Raleigh. As the court pointed out, the ‘relentless pursuit of justice’ by these investigators has demonstrated just how much Rodriguez Burrell’s life mattered and the lengths our law enforcement will go to bring justice to him, his family, and to the ‘good and true people who live in that Raleigh community.’”
“Brandon Mangum will have the rest of his life to think about the damage he and his conspirators caused to innocent citizens of Raleigh. Today's sentence is another example of law enforcement partners working together to effectively hold criminals accountable," said John Strong, the Special Agent in Charge of the FBI in North Carolina.
The prosecution of Devine and Mangum was a part of an Organized Crime and Drug Enforcement Task Force Operation (OCDETF) targeting violent gang members and drug traffickers in Raleigh, North Carolina.
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 Federal Bureau of Investigation and the Raleigh Police Department led the investigation with assistance from the North Carolina Department of Public Safety, Wake County Sheriff’s Office, Raleigh/ Wake City-County Bureau of Identification, United States Marshal’s Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the North Carolina Office of the Chief Medical Examiner. Assistant United States Attorneys Dena King and Scott Lemmon prosecuted this case with Christina Taylor with the U.S. Department of Justice Criminal Division’s Organized Crime and Gang Section.
A copy of this press release is located on our website. 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. 5:16-cr-00012-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
[1] Devine was sentenced on April 22, 2020 to four consecutive life sentences plus 240 months imprisonment. See press release https://www.justice.gov/usao-ednc/pr/godfather-north-carolina-united-blood-nation-sentenced-four-consecutive-life-sentences
Arrest Made for the Arson of Fayetteville’s Historic Market HouseRead the Press Release
RALEIGH, N.C. – A Fayetteville man was arrested today for taking part in the arson of Fayetteville’s Market House after an otherwise peaceful demonstration over the death of George Floyd in Minneapolis, Minnesota, turned violent, Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina announced.
Charles Anthony Pittman, of Fayetteville was arrested by special agents of the ATF and is charged by complaint with one count of maliciously damaging property owned or possessed by an institution receiving federal financial assistance. Pittman will make his initial appearance June 8, 2020, by videoconference before U.S. Magistrate Judge Robert T. Numbers, II.
According to the complaint, on May 30, 2020, an otherwise peaceful protest in downtown Fayetteville turned violent when several individuals set fire to the Market House. A local television crew caught Pittman on camera showing a red gasoline container to the crowd below before he poured its contents throughout the floor of the second story. Pittman ran out of the Market House as the floor caught on fire with other individuals, including an employee, still inside. As a result of the fire, the Market House sustained charring and mass wood loss to the second story floor.
Earlier that same day, Pittman broadcasted a Facebook Live video while he drove around the Market House traffic circle. Pittman claimed to be scoping out the scene, as he discussed whether the Market House should come down. After noting the inaction of the peaceful protesters, saying they would just “barbeque and mildew,” Pittman promised the Facebook Live audience that he would be back. Pittman wore the same shirt in the Facebook Live video that he wore later at the Market House fire.
The count charged in the criminal complaint carries a statutory mandatory minimum term of imprisonment of seven (7) years, a maximum potential penalty of forty (40) years in prison, and a maximum fine of $250,000.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina credited the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Fayetteville Police Department (FPD) with the investigation leading to today’s arrest. Assistant U.S. Attorneys Chad Rhoades and J.D. Koesters of the U.S. Attorney’s Office’s Criminal Division are representing the government.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Henderson Heroin Trafficker SentencedRead the Press Release
RALEIGH, N.C. – A Henderson man was sentenced to 78 months in prison for trafficking heroin in Vance County.
According to court documents, Reginald Lamont Lewis, 31, was involved in the distribution of heroin from February 2017 until December 2018. During that time, law enforcement investigated the drug trafficking activities of Lewis by conducting undercover purchases of narcotics; over 300 individual doses of heroin were purchased in total. The execution of a search warrant led to the seizure of approximately $25,600 in U.S. currency.
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 Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Henderson Police Department; the North Carolina State Bureau of Investigation; the Vance County Sheriff’s Office; and the Virginia State Police Department investigated the case and Assistant U.S. Attorney Nick J. Miller prosecuted the case.
A copy of this press release is located on our website. 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. 5:18-cr-00518-D-1.
Department of Justice Awards Nearly $400 Million for Law Enforcement Hiring to Advance Community PolicingRead the Press Release
RALEIGH, N.C. – The Department of Justice today announced nearly $400 million in grant funding through the Department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The Attorney General announced funding awards to 596 law enforcement agencies across the nation, which allows those agencies to hire 2,732 additional full-time law enforcement professionals. United States Attorney Robert J. Higdon, Jr. announced that awards were given to five law enforcement agencies in the Eastern District allowing them to hire 9 additional officers. These grants total $1,124,540.00. The awards announced today are inclusive of the $51 million announced in May as part of Operation Relentless Pursuit.
“The Department of Justice is committed to providing the police chiefs and sheriffs of our great nation with needed resources, tools, and support. The funding announced today will bolster their ranks and contribute to expanding community policing efforts nationwide,” said Attorney General William P. Barr. “A law enforcement agency’s most valuable assets are the men and women who put their lives on the line every day in the name of protecting and serving their communities.”
“I applaud the work of the Department of Justice’s Community Oriented Policing Services (COPS Office) and their efforts to fund additional police officers in my District,” commented Mr. Higdon. This grant is timely and will assist agencies to increase their community policing efforts that will build better relationships between law enforcement and those they serve.”
The COPS Hiring Program is a competitive award program intended to reduce crime and advance public safety through community policing by providing direct funding for the hiring of career law enforcement officers. In addition to providing financial support for hiring, CHP provides funding to state, local, and tribal law enforcement to enhance local community policing strategies and tactics. In a changing economic climate, CHP funding helps law enforcement agencies maintain sufficient sworn personnel levels to promote safe communities. Funding through this program had been on hold since the spring of 2018 due to a nationwide injunction that was lifted earlier this year.
CHP applicants were required to identify a specific crime and disorder problem focus area and explain how the funding will be used to implement community policing approaches to that problem focus area. 43 percent of the awards announced today will focus on violent crime, while the remainder of the awards will focus on a variety of issues including school-based policing to fund school resource officer positions, building trust and respect, and opioid education, prevention, and intervention. The COPS Office received nearly 1,100 applications requesting more than 4,000 law enforcement positions.
The complete list of awards can be found here. To learn more about CHP, please visit https://cops.usdoj.gov/chp. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Gang Member Sentenced to Federal Prison for Possessing a Firearm During Struggle with DetectivesRead the Press Release
GREENVILLE, N.C. – A Jacksonville man was sentenced today to 30 months in prison for possessing a firearm as a convicted felon.
According to court documents, Dasean Clifton Moore, 34, attempted to pull a loaded .25 caliber handgun on Onslow County Sheriff’s detectives while they were serving him with warrants for drug-related crimes. After a prolonged struggle over the handgun, the Onslow County detectives were able to disarm and arrest Moore. Moore is a high-ranking member of the United Blood Nation street gang in the Jacksonville area.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle. The Federal Bureau of Investigation and the Onslow County Sheriff’s Office investigated the case and Assistant U.S. Attorney John Parris prosecuted the case.
A copy of this press release is located on our website. 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. 7:19-cr-00174-BO-1
AT &T Robber Sentenced to 22 Years' ImprisonmentRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced today to 264 months’ imprisonment for robbing an AT&T store and illegally possessing a firearm.
According to court documents, Robert Kevin Boddie, 46, was named in a three-count Indictment filed in the Eastern District of North Carolina on November 20, 2019. The Indictment charged Hobbs Act Robbery, Possession of a Firearm by a Convicted Felon, and Brandishing a Firearm in Furtherance of a Crime of Violence on April 15, 2019. On February 11, 2020, the defendant pled guilty to the Indictment pursuant to a plea agreement.
On April 15, 2019, the Raleigh Police Department (RPD), was dispatched to an armed robbery that occurred at the AT&T store located at 4551 New Bern Avenue in Raleigh. Upon arrival, officers spoke with an employee who advised that the suspect, later identified as Boddie, entered the store and inquired about an iPhone. According to the employee, Boddie then brandished a firearm and forced him to go to the rear storage room at gunpoint. The employee placed eight iPhones (ranging in price from $749.99 to $1,099.99), an Alcatel Tetra (valued at $49.99), and a GPS tracker (valued at $480.00) from the safe into a plastic bag and gave it to Boddie. The employee advised that Boddie then fled the store. RPD reviewed the surveillance video from the store and were able to clearly see Boddie as the suspect.
RPD officers responded to the area of the AT&T store and began searching for Boddie with the use of the GPS tracker that was taken. An officer traveling on Buffalo Road in Raleigh observed a vehicle swerve from traffic, cross a double yellow line, and then run a red light. Once the officer reached the vehicle, both doors were open, and no one was in the vehicle. The stolen cell phones and GPS unit were recovered from the vehicle. Additionally, a loaded firearm with 12 rounds of ammunition wrapped in a shirt was located between the vehicle and guardrail on the side of the road. The officer heard someone running in the wooded area parallel to the road and gave chase. The officer gave commands to Boddie to stop. Boddie was then arrested. Officers established that the firearm located next to the vehicle was the same one used in the robbery.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Raleigh Police Department (RPD) investigated the case and Assistant U.S. Attorney Daniel W. Smith prosecuted the case.
A copy of this press release is located on our website. 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-462-BO.
Raleigh Real Estate Developer Arrested on Fraud and Money Laundering ChargesRead the Press Release
RALEIGH, N.C. – A federal grand jury returned an indictment charging a Sanford man with Fraud and Money Laundering. The charges were unsealed yesterday.
According to the indictment, Joshua Matthew Houchins, 36, operated a number of real estate development companies in Raleigh between 2014 and 2018, including Rossshire Development LLC, Greenstone Ventures LLC, and Modern South Development LLC. The indictment charges that Houchins used these entities to carry out a fraud upon his real estate development investors.
According to the indictment, Houchins solicited investment monies by telling victims that their money would be “put to work” on a specific property, and further represented that the investments would be secured by deeds of trust filed with the county register of deeds that was the subject of the investment. In fact, Houchins did not put all of the investor funds to work on the property on which the investor was solicited to invest, and instead, regularly used investor funds on other properties, or on personal expenses. Likewise, the investor promissory notes were not secured by a deed of trust as promised. In some instances, Houchins did not even own the property that was the subject of the investment, and as such, could not truthfully grant a deed of trust to the investor.
The indictment alleges that after Houchins diverted investor money away from the property on which the funds were supposed to be spent, Houchins failed to develop and sell the properties, as he represented he would. Houchins then defaulted on the notes by failing to pay investors their promised returns. The investors were unable to foreclose upon the investment properties because Houchins had not secured the promissory notes with a deed of trust filed, thereby resulting in losses to the investors.
Houchins is charged with nine counts of Wire Fraud, each of which carry a punishment of up to 20 years in prison. Houchins is also charged with three counts of Conducting Monetary Transactions in Criminally Derived Property, each of which carry a punishment of up to 10 years in prison.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation and the North Carolina Secretary of State are investigating the case and Assistant U.S. Attorney William M. Gilmore is prosecuting the case.
A copy of this press release is located on our website.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Las Vegas Couple Indicted in $13 Million Fraud Upon North Carolina Medicaid Program and Scheme to Launder Proceeds into Private JetRead the Press Release
RALEIGH, N.C. – On May 19, 2020 a federal grand jury returned a Superseding Indictment charging a Las Vegas couple with numerous charges, including (1) Conspiracy to Commit Health Care Fraud and Wire Fraud, (2) Health Care Fraud, (3) Wire Fraud, (4) False Statements Relating to Health Care Matters, (4) Aggravated Identity Theft, (5) Conspiracy to Commit Money Laundering, and (6) Conducting Transactions in Criminally Derived Property with Fraud and Money Laundering. The charges were unsealed today, following the arrest of all defendants.
“This case represents one of the most brazen and egregious cases of home health Medicaid fraud ever seen in this district,” commented U.S. Attorney Robert J. Higdon, Jr. “The indictment alleges a $13 million fraud that funded a gluttonous, social media-marketed lifestyle - one filled with private jets, penthouses and luxury resorts. Most reprehensible is the fact that this crime is alleged to have been carried out on the backs of our most vulnerable: the poor, the deceased, the elderly, and the disabled. Even in the face of a global pandemic, this office will continue its work to ensure that defendants like these will be held to fully account for their actions.”
"Stealing taxpayer money from a health care program designed to care for the poor and disabled just to bankroll a private jet and other luxury products – as alleged in this case – is reprehensible,” said Special Agent in Charge Derrick L. Jackson of the HHS Office of Inspector General. “Our hardworking investigators and law enforcement partners are committed to making sure such greed-fueled fraud is uprooted and those who commit it are held accountable for their actions.”
Special Agent in Charge Matthew D. Line, of the IRS, Criminal Investigation stated, “We are pleased with today’s indictment of Latisha and Timothy Harron as a result of the collaborative efforts of our law enforcement partners. The egregious acts allegedly carried out by the Harron’s in this case will not be tolerated. IRS-CI will continue to use our financial expertise to expose and bring to justice those who line their pockets by committing fraud against the healthcare system.”
According to the indictment, Latisha Harron, also known as Latisha Reese Holt, 44, of Las Vegas, Nevada, and Timothy Mark Harron, 50, of Las Vegas, Nevada, worked together to carry out a massive fraud upon the North Carolina Medicaid Program (“NC Medicaid”) by billing the government for fictitious home health services. They then worked together to launder the proceeds of the fraud into, among other things, a private jet, luxury jewelry and clothing, and properties in Ahoskie and Rich Square, North Carolina.
According to the indictment, by 2010, Latisha Harron had created, and was operating, Agape Healthcare Systems, Inc. (“Agape”) an alleged Medicaid home health provider, in Roanoke Rapids, North Carolina. The indictment alleges that to enroll Agape as a Medicaid provider, Latisha Harron fraudulently concealed her prior felony conviction for Identity Theft. The indictment then alleges that in 2012, Latisha Harron moved out of North Carolina to Maryland. Despite that move, Harron continued to bill NC Medicaid as though Agape was providing home health services to North Carolina recipients.
The indictment further alleges that in May of 2017, Latisha Harron moved to Las Vegas, Nevada to live with Timothy Mark Harron, and that the two were married in 2018. The indictment alleges that Timothy Mark Harron was also a previously convicted felon, and that this fact was concealed from the NC Medicaid on enrollment documents. The indictment then details how Latisha Harron and Timothy Mark Harron (“the Harrons”) worked together to expand the Agape fraud upon NC Medicaid, by fraudulently billing the program for more than $10 Million, just in the period between 2017 and 2019.
The indictment alleges that the Harrons carried out the fraud by exploiting an eligibility tool that was entrusted only to NC Medicaid providers. Specifically, the Harrons searched publicly available sources, such as obituary postings on the internet by North Carolina funeral homes, to locate recently deceased North Carolinians. The Harrons would extract from the obituary postings certain personal information for the deceased, including their name, date of birth, and date of death. Then, utilizing the extracted information, the Harrons would then query the NC Medicaid eligibility tool to determine whether the deceased individual had a Medicaid Identification Number. If the deceased North Carolinian had a valid Medicaid Identification Number and was otherwise eligible for Medicaid coverage during their life, the Harrons would use that individual’s identity to “back-bill” NC Medicaid, through Agape, for up to one year of fictitious home health services that were allegedly rendered prior to the death of the individual. NC Medicaid then disbursed millions to Agape, all of which flowed into accounts controlled by the Harrons.
The indictment alleges that the Harrons carried out the fraud via the internet from locations around the globe, including their corporate office building in Las Vegas, their penthouse condominium in Las Vegas, a corporate office in North Carolina, and from various hotels and luxury resorts in and outside of the United States.
The indictment further charges the Harrons in a scheme to launder the proceeds of the Agape fraud into various luxury items. These expenses included a $900,000 wire for the purchase of a British Aerospace Bae 125-800A private jet, hundreds of thousands of dollars in Tiffany & Co. and Brioni clothing and jewelry, thousands of dollars on Eastern North Carolina business properties, and thousands of dollars in gym equipment. The indictment also includes a forfeiture notice, seeking forfeiture of, among other things, a 2017 Aston Martin DB 11 sports vehicle and a wine collection.
The Harrons are charged with (1) Conspiracy to Commit Health Care Fraud and Wire Fraud, in violation of Title 18, United States Code, Section 1349, which carries a maximum punishment of up to 20 years in prison, (2) Health Care Fraud, in violation of Title 18, United States Code, Section 1347, which carries a maximum punishment of 10 years in prison, (3) 54 counts of Wire Fraud, in violation of Title 18, United States Code, Section 1343, each of which carry a maximum punishment of 20 years in prison, (4) 6 counts of Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A, each of which carry a maximum punishment of not less than, nor more than, 2 years in prison consecutive to other sentences, (5) Conspiracy to Commit Money Laundering, in violation of Title 18, United States Code, Section 1956(h), which carries a maximum punishment of 10 years in prison, and (6) 11 counts of Conducting Transactions in Criminally Derived Property with Fraud and Money Laundering, in violation of Title 18, United States Code, Section 1957, which carries a maximum punishment of 10 years in prison. Latisha Harron is also charged with Making False Statements Relating to Health Care Matters, in violation of Title 18, United States Code, Section 1035, which carries a maximum punishment of five years in prison.
Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation, the United States Department of Health and Human Services Office of the Inspector General, the Internal Revenue Service Criminal Investigation, and Investigators with the North Carolina Attorney General’s Office Medicaid Investigations Division, are all investigating the case. The North Carolina Medicaid Investigations Division 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.
Assistant U.S. Attorney William M. Gilmore is the prosecutor on this case. Assistant U.S. Attorney John Harris represents the United States with respect to forfeiture aspects of the case.
Should you feel that you or a family member are a victim of this case, please contact the United States Department of Health and Human Services Office of the Inspector General at (305) 968-6960.
An indictment is merely an accusation. The defendants are presumed innocent until proven guilty.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Wilmington Man Responsible for Distributing Kilograms of Heroin Receives 15 Years in Federal PrisonRead the Press Release
RALEIGH, N.C. – A Wilmington man was sentenced on May 23, 2020 to 180 months in prison for conspiracy to distribute and possess with the intent to distribute 1000 grams or more of heroin, possession with intent to distribute 100 grams or more of heroin and a quantity of cocaine and possession of a firearm by a convicted felon.
According to court documents, William Gethers, 49, was involved in the importation and distribution of heroin and cocaine into Wilmington. Between May and September 2019, the New Hanover County Sheriff’s Office Vice Division made several undercover purchases from Gethers. On September 10, 2019, detectives served a search warrant on a “stash house” in Wilmington where Gethers had approximately 39,000 bags of heroin, 9 ounces of cocaine and more than $10,000.00. Additionally, detectives searched his residence on Prices Lane and found an additional $44,000.00 and two handguns. During a follow up investigation, law enforcement seized an additional $148,050.00 that had been hidden in Gethers’ home and in banks accounts. The total amount of drug proceeds seized was more than a quarter of a million dollars. During the course of the investigation, law enforcement uncovered that Gethers was responsible for importation and distribution of more than 5 kilograms of heroin.
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 Drug Enforcement Administration and the New Hanover County Sheriff’s Office investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case. This case was part of the OCDETF investigation “White Rabbit” focusing on a drug trafficking organizations involved in the importation of Heroin and Methamphetamine into Eastern North Carolina.
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. 7:19-CR-159-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
United Blood Nation Gang Member Gets 10 Years in Federal Prison After Shooting a Raleigh Resident in the NeckRead the Press Release
RALEIGH, N.C. – A Raleigh United Blood Nation gang member was sentenced today to 120 months in prison for illegally possessing a firearm and shooting a victim.
According to court documents, Destin Devaunta Wilson, 24, was named in a one-count Indictment filed in the Eastern District of North Carolina on July 18, 2019. The Indictment charged Possession of a Firearm by a Convicted Felon on February 18, 2019. On December 4, 2019, the defendant pled guilty to the Indictment.
U.S. Attorney Higdon stated, “This shooting is but another example of the violence and danger that this defendant and the members of the United Blood Nation bring to communities all across the Eastern District. My office is laser focused on breaking the UBN and ending their reign of fear and terror.”
On February 18, 2019, officers with the Raleigh Police Department (RPD), responded to a shooting at 567 Dacian Road in Raleigh. During the investigation, officers interviewed witnesses who reported that an argument ensued between Wilson and two other individuals at the aforementioned residence. As the argument escalated, Wilson pulled out a gun, pointed it at the male with whom he was arguing, and shot him in the neck. Wilson fled from the shooting scene, but was spotted in downtown Raleigh later that evening. Officers arrested WILSON, who was in possession of a .40 caliber pistol and 6 rounds of .40 caliber ammunition.
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 Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Raleigh Police Department (RPD) investigated the case and Assistant U.S. Attorney Daniel W. Smith 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-00281-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Roanoke Rapids Man Sentenced for Illegal Gun PossessionRead the Press Release
RALEIGH, N.C. – A Roanoke Rapids man was sentenced today to 41 months in prison for being a felon in possession of a firearm.
According to court documents, Tishawn Jermaine Edwards, 31, was caught with a firearm after leading police on a dangerous high-speed chase in Roanoke Rapids. Edwards has multiple prior felony convictions.
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 Roanoke Rapids Police Department 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. 4:18-CR-41-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Harris Teeter Manager Sentenced for Role in Firearm Purchase SchemeRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced today to 30 months in prison for making false statements during the purchases of firearms.
According to court documents, William John Shaw, Jr., 37, co-manager of Harris Teeter in Raleigh from October 2016 until present, was named in an eight-count Criminal Information filed in the Eastern District of North Carolina on December 20, 2019. On February 10, 2020, with a written Plea Agreement, the defendant pled guilty to all eight counts of making False Statement During Purchase of a Firearm.
An investigation was initiated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Group II, following the receipt of information from local law enforcement regarding numerous recovered firearms in Washington, D.C., and Maryland, some of which had been used in crimes. Investigators determined that between 2013 and 2019, Shaw had purchased numerous firearms at various stores and pawn shops located in Wake County and Johnston County and sold those firearms to individuals in Washington, D.C., and Maryland. During these firearm purchases, Shaw knowingly made false statements related to the acquisition and intended ownership of the firearms. Investigators determined that Shaw filled out numerous ATF Form 4473 and stated that he was the actual transferee/buyer of the purchased firearm(s) and that he was not acquiring the firearm(s) on behalf of another person. Investigators determined this to be false because Shaw was not purchasing firearms for himself, but rather for other individuals. In 2019, Shaw made unprotected admissions to ATF agents that he purchased and sold approximately 30 to 40 firearms to relatives and other unknown individuals.
“One of the priorities of the Justice Department is to shut down the illegal gun pipeline that feeds firearms into some of our largest and most crime ridden communities,” commented U.S. Attorney Higdon. “William Shaw was running a gun pipeline between here and Washington. But, no more. The people of the Eastern District as well as the people of Washington are safer now because his pipeline has been shut down.”
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 Bureau of Alcohol, Tobacco, Firearms & Explosives Washington Group, II investigated the case and Assistant U.S. Attorney Daniel W. Smith prosecuted the case.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
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-00532-D.
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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.