Eastern District of North Carolina
Press releases recorded for this federal judicial district.
North Carolina Mental Health Executive Sentenced to Prison for Failure to Pay Employment TaxesRead the Press Release
A Raleigh, North Carolina, man was sentenced today to 30 months in prison for failing to report and pay employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert J. Higdon Jr., for the Eastern District of North Carolina.
According to court documents, from 2010 to 2013, Sainte Deon Robinson failed to pay over federal income, Social Security, and Medicare taxes withheld from the wages paid to employees of his business, the mental health service provider OneCare Inc. Robinson served in various positions at OneCare Inc., including President, and was obligated to pay over to the Internal Revenue Service (IRS) such employment taxes on behalf of the company. He failed to report and pay over almost $1.7 million in employment taxes to the IRS.
In addition to prison, Robinson was ordered to pay restitution to the IRS in the amount of $1,686,360, and to serve three years of supervised release after the completion of his sentence.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Higdon commended special agents of IRS-Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Lauren Castaldi and Michael Boteler, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Five Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging ROBERTO CARLOS CATALAN-BOCANEGRA, age 33, of Mexico, NESTOR ALONZO DE LOS SANTOS-HERNANDEZ, age 26, of Mexico, and FLORENCIO WALDEMAR VICENTE-VICENTE, age 26, of Guatemala, Noel Romero-Espinal, age 37, of Honduras, and Favian Villa-Campos, age 35, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of illegal reentry of a deported alien, CATALAN-BOCANEGRA, previously deported after three convictions for driving while impaired and domestic violence protective order violations, DE LOS SANTOS-HERNANDEZ, previously deported and found in New Hanover County due to his convictions for second degree forcible rape and indecent liberties with a child, and VICENTE-VICENTE, previously deported and found in Wayne County due to his conviction for a drug-related offense, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
ROMERO-ESPINAL, previously deported twice after a conviction for attempted trafficking in cocaine and a former MS-13 gang member, was found based on a hotline tip that he was living in Wake County, and VILLA-CAMPOS, previously deported twice and found in Craven County while serving two consecutive 66 to 92 month sentences for attempted trafficking and conspiracy to traffic cocaine, are both alleged to have been previously deported subsequent to a felony conviction. Therefore, if convicted, ROMERO-ESPINAL and VILLA-CAMPOS would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Federal Charges Announced for Bank Fraud and Fraud in Naturalization ProcessRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces an Indictment charging JAMAL MOHAMMAD ELEIDY, 57, of Apex, with one count of conspiracy to commit bank fraud, two counts of attempted bank fraud, four counts of bank fraud, and two counts involving false and fraudulent statements in connection with his application for citizenship by naturalization.
According to the allegations in the Indictment, between March 2014 through the date of the Indictment, ELEIDY, and his co-conspirators used synthetic identities to apply for credit cards with at least 18 federally insured banks.
Synthetic identity fraud is a type of fraud in which various forms of information are combined to create a “new identity.” The forms of information often include stolen or fictitious SSNs, and/or stolen or fictitious driver’s licenses. The new synthetic identity, or “new identity,” is then used to open financial accounts and secure credit based upon the newly created identity. Once credit is obtained and purchases made, the applicant seldom makes payments to the issuers.
In the present case, ELEIDY and his co-conspirators are alleged to have applied for credit with synthetic identities on at least 350 different occasions. It is further alleged that over the course of the conspiracy, the conspirators caused a total loss of over $770,000 to various financial institutions.
In addition, ELEIDY is alleged to have secured his naturalization as a United States citizen contrary to law by making false statements on his naturalization application.
If convicted on all of the charges, ELEIDY would face a maximum penalty of 230 years imprisonment, an $8,040,000 fine, a term of supervised release of not more than 5 years, and restitution.
The charges and allegations contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
Investigation of this case was conducted by the U.S. Postal Inspection Service, the Federal Bureau of Investigation, the U.S. Department of Homeland Security – Homeland Security Investigations, and the U.S. Department of Health & Human Services – Office of the Inspector General. Assistant United States Attorney Banumathi Rangarajan is prosecuting the case for the government.
Fayetteville Woman Sentenced for Filing False Income Tax Returns, Aggravated Identity Theft, and Making False StatementsRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that Chief United States District Judge Terrence W. Boyle sentenced KHADIJA FATIMA HOWARD, 38, of Fayetteville to 30 months imprisonment followed by three years of supervised release.
HOWARD was named in a three-count Criminal Information filed on February 26, 2018. On May 1, 2018, HOWARD pled guilty to Making and Filing False Income Tax Returns, Aggravated Identity Theft, and Making False Statements. Pursuant to the Plea Agreement, HOWARD agreed to make restitution to the Internal Revenue Service in the amount of $47,247 and, to the Social Security Administration in the amount of $44,000.
The investigation revealed that HOWARD applied for Title II disability benefits on July 20, 2009, claiming that the onset of her disability was April 1, 2009. After the SSA denied HOWARD’S application for disability benefits several times, HOWARD requested a hearing on November 21, 2012. Prior to the hearing, HOWARD’S attorneys submitted a memorandum outlining HOWARD’S theory of the case and provided relevant medical records and additional evidence. At the hearing on March 20, 2014, a medical doctor testified on HOWARD’S behalf and proposed an amended date of January 24, 2012, as the date of onset of her disability. On April 25, 2014, the SSA awarded HOWARD disability benefits dating back to January 24, 2012, for the following impairments: inflammatory arthritis, idiopathic peripheral neuropathy, degenerative disc disease, and anxiety.
From the time of her initial application and continuing until the hearing, HOWARD swore that she had no earnings, other than a $7,500 disability insurance distribution from her employer, after she became unable to work in April 2009. Additionally, HOWARD denied using other names or Social Security numbers (SSN) for any purposes, and denied owning any vehicles, bank accounts, or property of any kind. According to HOWARD’S representations, the only social services assistance she received was food stamps from the Department of Social Services in Fayetteville, North Carolina. At the hearing, HOWARD told the administrative law judge (ALJ) that she still owned a house in Baltimore, Maryland; however, there was no indication that HOWARD earned any income from the house, as HOWARD merely advised the ALJ that a friend was residing in the house.
In November 2014, investigators with the SSA learned that HOWARD had changed her name to Maryam Rachel Smith (Smith) and obtained a new SSN ending in 1431 in November 2008, after claiming she was the victim of abuse. The SSA permits a legal name change if a person claims harassment, abuse, or life endangerment, but does not require that a legal name change be made. HOWARD utilized the name Smith and the SSN ending in 1431 to file income tax returns with the Internal Revenue Service (IRS), reporting self-employment business income from HOWARD’S parents’ retail fragrance store. HOWARD’S self-employment business earnings were greater than the amounts allowable by SSA under substantial gainful activity (SGA). When SSA investigators confronted HOWARD, she claimed that her parents deposited funds into her bank account, which HOWARD improperly reported as income. The funds should have been reported as dividends on a Schedule B, rather than a Schedule C, since the payments reportedly represented a return on HOWARD’S $65,000 investment in her parents’ retail fragrance store. HOWARD’S mother advised that HOWARD did not earn the Schedule C business income reported on the Smith income tax returns. Moreover, her mother advised that she provided support to HOWARD and to HOWARD’S minor child, claiming both HOWARD and HOWARD’S daughter as dependents on her income tax returns. According to her mother, HOWARD prepared those income tax returns. HOWARD also falsely claimed that she had filed amended income tax returns for the tax years 2010, 2011, 2012, and 2013 to correct this mistake. HOWARD provided the SSA investigators with “copies” of the purportedly filed amended returns. Investigators with the IRS advised that the amended returns submitted to the SSA by HOWARD were never filed, contrary to HOWARD’S representations. As a result of HOWARD’S concealment of work, investigators with the SSA determined that she caused an overpayment of SSA funds in excess of $44,000.
An investigation conducted by the IRS determined that between February 22, 2011, and January 17, 2015, HOWARD filed seven false income tax returns. For tax years 2010 and 2011, HOWARD filed false income tax returns under her birth name of “Howard,” as well as under the name Smith. All four income tax returns were found to contain false representations. HOWARD also filed three false income tax returns for the tax years 2012, 2013 and 2014 in the name Smith. All seven income tax returns reported either wages or business income which were never earned by HOWARD under the name “Howard,” or under the name Smith. HOWARD also claimed head of household filing status and false dependents to qualify for earned income, child care, and making work pay credits, resulting in the issuance of seven fraudulent income tax refunds, totaling $47,247. The dependents who were claimed by HOWARD on her income tax returns were real individuals; however, they were not supported in any manner by HOWARD during those tax years.
The case was investigated by the Social Security Administration’s Office of Inspector General and the Internal Revenue Service Criminal Investigation. Assistant United States Attorney Susan B. Menzer prosecuted the case on behalf of the United States.
North Carolina Tax Return Preparer Indicted for Conspiracy and Filing False Tax ReturnsRead the Press Release
A Raleigh, North Carolina, resident was arrested yesterday after a federal grand jury sitting in Raleigh previously returned an indictment charging him with one count of conspiracy to defraud the United States and 14 counts of aiding and assisting in the preparation of a fraudulent tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina.
According to the allegations in the indictment, Garvey Imhotep conspired with others to file false tax returns for the 2011 through 2015 tax years for clients of Tax Kings LLC, Two Brothers Tax Service, and Taxes Done Right. Imhotep was an alleged owner and operator of those three tax return preparation businesses. Imhotep and his co-conspirators allegedly filed tax returns that claimed false education credits, among other illegitimate items, in order to fraudulently generate clients’ tax refunds.
If convicted, Imhotep faces a maximum sentence of five years in prison for the conspiracy charge and three years in prison for each count of aiding and assisting in the preparation of a fraudulent tax return. He also faces substantial monetary penalties, supervised release and restitution.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Higdon commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant United States Attorney Ethan Ontjes and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Rocky Mount Man and Woman Sentenced for RobberiesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that yesterday in federal court, Chief United States District Judge Terrence W. Boyle sentenced JAQUIN JAMAL PRATT, 20, and nikita shontel taylor, 26, of Rocky Mount, North Carolina to 120 months imprisonment, followed by 3 years of supervised release and 87 months imprisonment, followed by 3 years of supervised release respectfully.
PRATT and TAYLOR were named in a Superseding Indictment filed on September 19, 2018, charging them with interference with commerce by robbery. On December 12, 2018, and November 14, 2018, respectively, PRATt and TAYLOR each pleaded guilty to one count of interference with commerce.
On November 27, 2017, PRATT and TAYLOR robbed Saslow’s Jewelry in Wilson, North Carolina. They zip-tied employees then stole jewelry items valued at over $25,000. On December 8, 2017, PRATT and TAYLOR robbed Swift’s Fine Jewelry in Knightdale, North Carolina. Once again they zip-tied employees and stole jewelry valued above $30,000.
Mr. Higdon commented: “We are extremely pleased with the sentences imposed by the Court. While we cannot fully restore the victims in this case because they will always have to live with the fear and memory of being tied up and robbed. We hope the Court’s sentence will bring some measure of comfort and will deter others from committing similar crimes. And, of course, for the next seven plus years, these defendants won’t be in a position to threaten or harm anyone else.”
This case was initiated through 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.
Investigation of this case was conducted by the Knightdale Police Department, Wilson Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney Erin Blondel handled the case on behalf of the government.
Company and Two Individuals Sued for Allegedly Defrauding the United States Postal ServiceRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that the United States has filed a civil complaint alleging False Claims Act violations committed by BJ Trucking Company, Inc., a former Highway Contract Route supplier for the United States Postal Service. The complaint also alleges False Claims Act violations against two of the company’s principals, Douglas Cline and his son Chad Cline, and hundreds of thousands of dollars in fraudulent transfers allegedly made to hide money from the federal government.
The complaint alleges that BJ Trucking Company and the Clines defrauded the United States by systematically misusing federal funds for unauthorized fuel purchases from 2009 to 2015. In some instances, BJ Trucking Company allegedly used federal money to buy fuel for commercial, rather than Postal, trucking routes, including repeated alleged purchases in states where BJ Trucking Company had no Postal routes at all. In other instances, the company allegedly spent federal funds over 1,300 times on unleaded (rather than diesel) fuel purchases that the United States believes were for unauthorized personal vehicles.
The complaint also alleges that, after the Postal Service notified BJ Trucking Company and the Clines that they owed the United States over $3 million, the company transferred hundreds of thousands of dollars to the Clines, their family members, and related entities in order to conceal the funds from federal authorities. Perhaps worse, in September and October 2015, Chad Cline allegedly negotiated with the Postal Service for the release of over $700,000, money ostensibly necessary for BJ Trucking Company to continue operating without defaulting on its Postal Service contracts. Approximately seven days after the federal government disbursed those funds, however, BJ Trucking Company allegedly defaulted on the contracts, continued transferring thousands of dollars to the Cline family and related entities, and later ceased operations.
The federal False Claims Act allows the United States to recover triple the money falsely obtained, substantial penalties for each false claim submitted, and investigative costs. BJ Trucking Company, Douglas Cline, and Chad Cline can also be held liable for the fraudulent transfers with which they were involved, and the United States can recover from their individual assets.
The claims and allegations in the United States’ civil complaint are merely accusations. The defendants are presumed not liable unless and until the United States proves liability in a court of law.
The case is being investigated by the United States Postal Inspection Service. Assistant United States Attorney Neal I. Fowler represents the government in this matter.
For additional information the complaint filed with the court can be found at this link.Williamston Man Sentenced to 10 Years in Federal Prison for Felon in Possession ChargeRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina announces today, that Senior United States District Malcolm J. Howard sentenced ANTONIO CLARENCE DAUGHTRIDGE 33, of Williamston to 120 months’ imprisonment, followed by 3 years of supervised released, and a $2,500 fine.
On November 21, 2017, DAUGHTRIDGE was named in a Six-Count Second Superseding Indictment that was returned by a federal grand jury sitting in the Eastern District of North Carolina. DAUGHTRIDGE was charged with possession with intent to distribute a quantity of 3-4 methlylenedioxymethemphetamine and a quantity of cocaine, possession of a firearm in furtherance of a drug trafficking crime, two counts of possession of a firearm by a felon and one count of possession with intent to distribute a quantity of cocaine base (crack). On December 3, 2018, DAUGHTRIDGE pled guilty to possession of a firearm by a felon.
On March 8, 2015 officers with the Wilson Police Department were working off-duty at Oscar’s Night Club in Wilson when they were approached by an unknown female, stating that DAUGHTRIDGE was in possession of a firearm and had pointed it at her. Officers approached the vehicle that the woman stated DAUGHTRIDGE occupied, had the driver put the car in park and gave commands to DAUGHTRIDGE to show his hands. DAUGHTRIDGE was not compliant with the commands and officers pulled him from the vehicle. Once out of the vehicle and arrested, officers observed and seized a firearm underneath the passenger seat. During the search of DAUGHTRIDGE’s person, officers seized what was believed to be 4 ecstasy pills and 18 packets of cocaine.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought using 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 violence crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Nash County Sheriff’s Office, Wilson Police Department, Greenville Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney James Kurosad prosecuted the case for the government.
Windsor Woman Sentenced to 12 Months in Prison for Accepting BribesRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that in federal court, United States District Judge James C. Dever III sentenced ARLINDA HENDRIX LEE, 47, of Windsor, North Carolina, to 12 months and 1 day in prison, followed by 1 year of supervised release.
An investigation revealed that LEE, a correctional officer at Rivers Federal Correctional Institution (FCI) in Winton, North Carolina, was accepting bribes and helping to smuggle contraband into the prison for inmates.
On July 23, 2018, LEE pleaded guilty to a Criminal Information that charged her with Receipt of Bribes by a Public Official from 2015 to January 27, 2017.
In December 2015, investigators became aware that an inmate at Rivers FCI was using contraband cell phones to facilitate the smuggling of contraband cigarettes and drugs into the prison, as well as to communicate with drug associates. A review of telephone records from September 22, 2015 through March 28, 2016 revealed that the inmate had 53 contacts with phone numbers associated with LEE. The inmate later obtained a new cell phone, and phone records revealed five additional contacts with LEE.
Investigators determined that between May 10, 2012, and August 18, 2016, LEE received $7,350 in wire transfers from known associates of Rivers FCI inmates in exchange for helping to smuggle contraband into the prison.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Office of Inspector General. The case was prosecuted by Assistant United States Attorney Scott A. Lemmon.
Three Indicted on Conspiracy to Commit Marriage Fraud and Related Immigration ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging LEVAN LOMTATIDZE, age 44, a citizen of the country of Georgia, MELISSA ANNE GODSHALL, age 31, a citizen of the United States, ROBERT J. KENNERLEY, age 46, a citizen of the United States, with conspiracy to commit marriage fraud, marriage fraud, aiding and abetting, visa fraud and false statements in immigration proceedings.
The indictment alleges that GODSHALL and KENNERLEY, who were romantically involved, were panhandling for money on the side of the road in Granville County, North Carolina. An individual approached them and asked GODSHALL if she would be willing to marry a foreign-born national for money. GODSHALL agreed to engage in the marriage to LOMTATIDZE in exchange for $12,000, housing, and a vehicle. LOMTATIDZE and GODSHALL got married in Granville County, North Carolina. The marriage ceremony was witnessed by KENNERLEY and another individual.
LOMTATIDZE, GODSHALL and KENNERLEY entered into a rental agreement for a house located in Raleigh, North Carolina. The rent was paid for by LOMTATIDZE as part of the payment for the sham marriage. Thereafter, GODSHALL and LOMTATIDZE submitted fraudulent applications to United States Citizenship and Immigration Services (USCIS) requesting LOMTATIDZE’s adjustment of status as a lawful permanent resident in the United States. LOMTATIDZE and GODSHALL were interviewed at the USCIS office in Durham, North Carolina. Both attested under oath they were married in good faith. As a result of the interview, USCIS approved the request and LOMTATIDZE was granted “conditional” resident status in the United States. Later, LOMTATIDZE and GODSHALL submitted to USCIS another application attesting they were still married in good faith and requesting LOMTATIDZE’s removal of conditions on his resident status.
If convicted of conspiracy to commit marriage fraud, marriage fraud, visa fraud, and false statements in immigration proceedings, LOMTATIDZE and GODSHALL would each face maximum penalties of thirty years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of conspiracy to commit marriage fraud, and aiding and abetting marriage fraud, KENNERLEY would face maximum penalties of ten years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the Document and Benefit Fraud Task Force (DBFTF) in the Eastern District of North Carolina led by Homeland Security Investigations and assisted by USCIS’s Fraud Detection and National Security.
Alien Indicted on Illegal Reentry ChargeRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned an indictment charging VICTOR NAHUM PEREZ-COLINDRES, age 40, of Honduras, with illegal reentry of a deported alien.
If convicted of illegal reentry of an aggravated felon (possession of a firearm and ammunition), PEREZ-COLINDRES, previously deported and found in Nash County, would face maximum penalties of 20 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being investigated by ICE’s Enforcement and Removal Operations.
Man Sentenced for Possession of a Firearm by a FelonRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that United States District Judge Louise W. Flanagan sentenced KEVIN PAUL WOOD, 19, of Raleigh to 57 months imprisonment followed by 3 years of supervised release.
WOOD was named in an Indictment filed on July 25, 2018. On November 13, 2018, WOOD pled guilty to one-count of Possession of a Firearm by a Felon.
On April 17, 2018, investigators with the Harnett County Sheriff’s Office (HCSO) responded to a breaking and entering and larceny call in Lillington, North Carolina. When officers arrived at the home, it appeared to have been rummaged through, and a rifle and .9mm handgun had been stolen. Evidence showed that WOOD committed this breaking and entering and stole the firearms. On April 19, 2018, deputies with the HCSO responded to a residence in which the victims were home sleeping when they received a call from their grandson that someone was outside their home. One of the victims went to the backdoor and noticed it was cracked open; when she opened the door, she saw a man on the other side of the storm door pointing a gun at her face. The victim slammed the door and called 911. The victim further advised that the suspect had to be on foot because the front gate was locked. HCSO deputies observed footprints outside the residence. During their investigation, deputies received a domestic disturbance call at WOOD’s parents’ home, not far from the scene. When deputies arrived, WOOD was outside with his family, and officers conducted a pat down search of him. HCSO found several .32 caliber bullets in WOOD’s pant pockets. WOOD was detained as it was determined he was a convicted felon prohibited from possessing firearms and ammunition.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through 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.
The case was investigated by the Harnett County Sheriff’s Office. Assistant United States Attorney Daniel W. Smith prosecuted the case on behalf of the United States.
U.S. Obtains over $25 Million in Forfeited Funds as Part of a Successful Effort to Root Out Fraud and Corruption in Government Contracting in AfghanistanRead the Press Release
The Department of Justice has reached a settlement of its civil forfeiture case against assets owned by Hikmatullah Shadman that he wrongfully acquired as a government contractor in Afghanistan. Under the terms of the settlement, approximately $25 million will be forfeited to the United States. The civil settlement is part of a global settlement that involved the resolution of a criminal case and False Claims Act allegations.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Assistant Attorney General Jody Hunt of the Department’s Civil Division, U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina, Inspector General John F. Sopko of the Special Inspector General for Afghanistan Reconstruction (SIGAR), Director Frank Robey of the U.S. Army Criminal Investigation Command (CID)’s Major Procurement Fraud Unit, Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Special Agent in Charge John A. Strong of the FBI North Carolina Field Office made the announcement after the settlement was signed and filed with the U.S. District Court for the District of Columbia.
“The United States relies on government contractors to supply and resupply our military with vital resources they require to carry out critical missions,” said Assistant Attorney General Hunt. “We will continue to ensure that companies and individuals who contract directly or indirectly with the federal government do not engage in fraudulent business practices at the expense of our nation’s military and the American taxpayer.”
“The success of our overseas war and reconstruction efforts is tied directly to the trust and respect established with the local populace,” said U.S. Attorney Higdon. “Corruption in our military operations undermines those efforts and cannot be tolerated.”
“This case involved fraud and corruption that exploited subcontracts designed to support American troops in a conflict zone,” said Special Inspector General John F. Sopko. “I’m proud of the tenacity displayed by SIGAR special agents, whose dogged pursuit of justice led to the return of $25 million to the United States Treasury.”
According to court documents, Hikmatullah Shadman, a young Afghan national, operated several companies including Hikmat Shadman Logistics Services Company (HSLSC), which served as subcontractors delivering supplies to U.S. service members at various locations in Afghanistan. From November 2010 to March 2012, Shadman charged the United States more than $77 million for delivering supplies to U.S. service members. The civil forfeiture case, initially filed on Nov. 20, 2012, targeted, among other things, Shadman’s fraudulent receipt of a disproportionate number of subcontracts for the transport of military supplies in Afghanistan, as well as the inflated prices that he charged the United States for such transport.
From at least 2007 to 2012, the U.S. Government paid contractors and subcontractors to resupply U.S. military forces operating in Afghanistan, and utilized local Afghan-owned businesses to transport fuel and other supplies by truck to various locations throughout the country. The investigation revealed thousands of apparent falsified documents submitted by Shadman’s companies to the United States for payment. As a result of this falsification, the Government often paid Shadman for work that was never performed and for work other than that described in the documentation submitted. Through his companies, Shadman also charged the United States rates which were well above the average rate of his competitors. The forensic analysis conducted in this case revealed that Shadman overcharged the United States millions of dollars for transporting supplies to U.S. service members in Afghanistan.
As part of the global settlement, several companies owned and controlled by Shadman, including HSLSC, entered into a separate agreement with the United States to resolve False Claims Act allegations arising from kickbacks paid from November 2010 to May 2012 to obtain subcontracts to transport military supplies needed by the U.S. military in Afghanistan. Under the agreement, $1.5 million of the forfeited funds will be paid to resolve these claims.
In addition to the civil forfeiture and False Claims Act resolutions, Shadman’s primary company, HSLSC, was criminally prosecuted by the U.S. Attorney’s Office in the Eastern District of North Carolina. On Jan. 3, HSLSC pleaded guilty to a criminal information, No. 5:18-cr-492-1, charging the corporation with two counts of paying gratuities to two U.S. service members in Afghanistan, and one count of conspiracy to do the same, in order to influence the award of subcontracts to HSLSC and to ensure favorable treatment in the contracting process. In this criminal case, HSLSC was sentenced to pay an $810,000 fine and forfeit $190,000. Under the terms of the civil settlement agreement agreed to by the parties, those funds will be paid to the United States before the civil settlement is concluded. As part of the criminal case, HSLSC also agreed to be placed on probation for five years, not to contest debarment, not to seek to engage in business within the United States, and its corporate officers agreed not to apply for a visa to travel to the United States.
“The corporate plea and the civil settlement filed today once again demonstrates that defrauding the government is a losing proposition,” said Director Robey of the U.S. Army CID’s Major Procurement Fraud Unit. “Stealing U.S. tax dollars meant to support our soldier’s readiness is an egregious abuse of trust. We, along with our law enforcement partners, will continue to protect the U.S. military from unscrupulous businesses.”
“DCIS will aggressively investigate complex fraud and corruption that undermines the integrity of the Department of Defense (DoD) no matter where it happens or how long it takes,” said DCIS Special Agent in Charge Craig. “We hope that this case demonstrates the commitment of DCIS and our law enforcement partners to use every available option to protect valuable DoD resources around the world and better enable our Warfighters to accomplish our critical global missions.”
This civil forfeiture case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
The investigation was conducted by SIGAR along with the FBI, DCIS, the U.S. Army Major Procurement Fraud Unit, and the U.S. Air Force Office of Special Investigations, and was prosecuted by Trial Attorneys Patricia Kessler and Steven Parker of MLARS International Unit, and Assistant U.S. Attorney Elizabeth Aloi of the District of Columbia (formerly of MLARS). The HSLSC criminal case was prosecuted by Assistant U.S. Attorney Banu Rangarajan of the Eastern District of North Carolina.
The civil False Claims Act imposes treble damages and penalties on those who knowingly submit false or fraudulent claims for government funds or property. The False Claims Act investigation was handled by Trial Attorney Glenn Harris of the Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorneys John Truong and Heather Graham Oliver of the U.S. Attorney’s Office for the District of Columbia.
Fayetteville Man Sentenced for Drug Distribution and Firearm OffensesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge James C. Dever III sentenced DEMETRIE EVERETT, 24, of Fayetteville, North Carolina, to 72 months imprisonment, followed by five years of supervised release.
EVERETT was named in an Indictment filed on June 13, 2018, charging him with conspiracy to distribute and possess with intent to distribute heroin and fentanyl, distribution of fentanyl, distribution of heroin, and possession of a firearm in furtherance of a drug trafficking crime. On October 18, 2018, EVERETT pled guilty to conspiracy to distribute and possess with intent to distribute heroin and fentanyl, distribution of heroin, and possession of a firearm in furtherance of a drug trafficking crime.
According to the investigation, EVERETT distributed controlled substances which led to an immediate opioid overdose in April 2018. Following this overdose, and during the course of the investigation, law enforcement conducted two purchases of narcotics from EVERETT including heroin and fentanyl. A subsequent search warrant executed at EVERETT’s residence revealed additional controlled substances, as well as a firearm.
This case was implemented through 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 in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Investigation of this case was conducted by the Fayetteville Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Lucy Partain represented the government.
Former Operator of Illegal Booter Services Pleads Guilty to Conspiracy to Commit Computer Damage and AbuseRead the Press Release
An Orland Park, Illinois man pleaded guilty today to one count of conspiracy to cause damage to internet-connected computers for his role in owning, administering, and supporting illegal booter services that launched millions of illegal DDoS attacks against victim computer systems in the United States and elsewhere. The illegal services included ExoStress.in, (“ExoStresser”), QuezStresser.com, Betabooter.com (“Betabooter”), Databooter.com, Instabooter.com, Polystress.com, and Zstress.net.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina, made the announcement.
According to the criminal information, Sergiy P. Usatyuk, 20, combined with a co-conspirator to develop, control and operate a number of booter services and booter-related websites from around August 2015 through November 2017 that launched millions of DDoS attacks that disrupted the internet connections of targeted victim computers, rendered targeted websites slow or inaccessible, and interrupted normal business operations. For instance, as of Sept. 12, 2017, ExoStresser advertised on its website (exostress.in) that its booter service alone had launched 1,367,610 DDoS attacks, and caused targeted victim computer systems to suffer 109,186.4 hours of network downtime.
“Booters” or “Stressers” are a class of publicly-available, web-based services that allow cybercriminals to launch distributed denial-of-service, or DDoS, attacks that overwhelm a target computer system with unrequested traffic and, in turn, “boot” or “drop” the victim from the internet for a relatively small fee or no fee at all. To launch a DDoS attack using a booter, a cybercriminal often needs only a web browser and online payment tool to subscribe to a provider, provide instructions for attacking a victim computer system, and deliver payment.
The DDoS attacks launched by the booters also harmed computer systems that were not directly targeted. For example, according to the criminal information, in November 2016, a Betabooter subscriber launched a series of DDoS attacks against a school district in the Pittsburgh, Pennsylvania area that not only disrupted the school district’s computer systems, but affected the computer systems of 17 organizations that shared the same computer infrastructure, including other school districts, the county government, the county’s career and technology centers, and a Catholic Diocese in the area.
During the period of the conspiracy, Usatyuk and a co-conspirator gained in excess of $550,000 from charging subscriber fees to paying customers of their booter services and selling advertising space to other booter operators.
“For over two years, Sergiy Usatyuk conspired to launch millions of DDoS attacks that paralyzed the computer systems of U.S. organizations for more than 100,000 hours,” said Assistant Attorney General Benczkowski. “The Criminal Division and our law enforcement partners will remain vigilant in protecting the American public by prosecuting the cybercriminals responsible for these sophisticated and harmful schemes.”
“DDoS-for-hire services pose a malicious threat to the citizens of our district, as well as districts across the country, by impeding critical access to the internet and jeopardizing safety and security in the process,” said U.S. Attorney Higdon. “The operation and use of these services to disrupt the operations of our businesses and other institutions cannot be tolerated. Anyone who weaponizes web traffic in this manner will be vigorously pursued and prosecuted by my office.”
Over the past five years, booter and stresser services have grown as an increasingly prevalent class of DDoS attack tools. Booter-based DDoS attack tools offer a low barrier to entry for users looking to engage in cybercrime.
For additional information on booter and stresser services and the harm that they cause, please visit: https://www.ic3.gov/media/2017/171017-2.aspx.
If you believe you are a victim of this offense, please visit https://www.justice.gov/usao-ednc/united-states-v-sergiy-usatyuk or email [email protected].
The investigation was conducted by special agents of the FBI Charlotte Field Office, Raleigh Resident Agency. Additional assistance was provide by FBI’s Chicago and Miami Field Offices, as well as the Defense Criminal Investigative Service.
The case is being prosecuted by Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Adam Hulbig of the Eastern District of North Carolina.
Former Operator of Illegal Booter Services Pleads Guilty to Conspiracy to Commit Computer Damage and AbuseRead the Press Release
WASHINGTON – An Orland Park, Illinois man pleaded guilty today to one count of conspiracy to cause damage to internet-connected computers for his role in owning, administering, and supporting illegal booter services that launched millions of illegal DDoS attacks against victim computer systems in the United States and elsewhere. The illegal services included ExoStress.in, (“ExoStresser”), QuezStresser.com, Betabooter.com (“Betabooter”), Databooter.com, Instabooter.com, Polystress.com, and Zstress.net.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina, made the announcement.
According to the criminal information, Sergiy P. Usatyuk, 20, combined with a co-conspirator to develop, control and operate a number of booter services and booter-related websites from around August 2015 through November 2017 that launched millions of DDoS attacks that disrupted the internet connections of targeted victim computers, rendered targeted websites slow or inaccessible, and interrupted normal business operations. For instance, as of Sept. 12, 2017, ExoStresser advertised on its website (exostress.in) that its booter service alone had launched 1,367,610 DDoS attacks, and caused targeted victim computer systems to suffer 109,186.4 hours of network downtime.
“Booters” or “Stressers” are a class of publicly-available, web-based services that allow cybercriminals to launch distributed denial-of-service, or DDoS, attacks that overwhelm a target computer system with unrequested traffic and, in turn, “boot” or “drop” the victim from the internet for a relatively small fee or no fee at all. To launch a DDoS attack using a booter, a cybercriminal often needs only a web browser and online payment tool to subscribe to a provider, provide instructions for attacking a victim computer system, and deliver payment.
The DDoS attacks launched by the booters also harmed computer systems that were not directly targeted. For example, according to the criminal information, in November 2016, a Betabooter subscriber launched a series of DDoS attacks against a school district in the Pittsburgh, Pennsylvania area that not only disrupted the school district’s computer systems, but affected the computer systems of 17 organizations that shared the same computer infrastructure, including other school districts, the county government, the county’s career and technology centers, and a Catholic Diocese in the area.
During the period of the conspiracy, Usatyuk and a co-conspirator gained in excess of $550,000 from charging subscriber fees to paying customers of their booter services and selling advertising space to other booter operators.
“For over two years, Sergiy Usatyuk conspired to launch millions of DDoS attacks that paralyzed the computer systems of U.S. organizations for more than 100,000 hours,” said Assistant Attorney General Benczkowski. “The Criminal Division and our law enforcement partners will remain vigilant in protecting the American public by prosecuting the cybercriminals responsible for these sophisticated and harmful schemes.”
“DDoS-for-hire services pose a malicious threat to the citizens of our district, as well as districts across the country, by impeding critical access to the internet and jeopardizing safety and security in the process,” said U.S. Attorney Higdon. “The operation and use of these services to disrupt the operations of our businesses and other institutions cannot be tolerated. Anyone who weaponizes web traffic in this manner will be vigorously pursued and prosecuted by my office.”
Over the past five years, booter and stresser services have grown as an increasingly prevalent class of DDoS attack tools. Booter-based DDoS attack tools offer a low barrier to entry for users looking to engage in cybercrime.
For additional information on booter and stresser services and the harm that they cause, please visit: https://www.ic3.gov/media/2017/171017-2.aspx.
The investigation was conducted by special agents of the FBI Charlotte Field Office, Raleigh Resident Agency. Additional assistance was provide by FBI’s Chicago and Miami Field Offices, as well as the Defense Criminal Investigative Service.
The case is being prosecuted by Trial Attorney Aarash Haghighat of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Adam Hulbig of the Eastern District of North Carolina.
Terry Slaughter Pleads Guilty to Embezzlement of Labor Union AssetsRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that today, in federal court, TERRY SLAUGHTER, age 48, pled guilty to embezzlement of labor union assets. In pleading guilty, SLAUGHTER, agreed to make restitution to the United Food and Commercial Workers Local Union 1208 in the amount of $62,315.38.
On January 8, 2019, SLAUGHTER was charged in a Criminal Information with knowingly, intentionally and willfully embezzling, stealing, abstracting and converting to his own use and the use of another, on a recurring basis, money, funds, property, and other assets of a labor organization of which he was an officer, knowing his appropriation of the property was unauthorized. This Information charged SLAUGHTER with using the embezzled money primarily to fund vacations and purchase personal items.
In 2011, Terry Slaughter was elected secretary-treasurer of the United Food and Commercial Workers (“UFCW”), Local Union 1208. The Local encompasses North and South Carolina and has approximately 3600 active members. As the Secretary-Treasurer, Slaughter had financial oversight of the Local’s expenditures, bills, staff benefits, and payroll. SLAUGHTER also acted as a counter signature on union checks and was responsible for providing monthly financial statements to the executive board as well as writing/maintaining the minutes from membership meetings.
In 2015, the UFCW initiated an audit of the Local after placing it under a trusteeship on March 30. The audit revealed that between January 2012 and March 2015, SLAUGHTER embezzled $62,315.38 in union funds by receiving unauthorized checks and making unauthorized purchases with his assigned debit card. The audit also revealed that SLAUGHTER failed to maintain required financial records and concealed his embezzlement by destroying monthly meeting minutes.
Mr. Higdon commented: “Terry Slaughter held a position of trust on behalf of the thousands of members of the United Food and Commercial Workers Union across North and South Carolina. This prosecution is part of the Department of Justice’s ongoing effort to ensure honesty and integrity for the members of our union community.”
The applicable total maximum statutory penalty for this crime is 5 years imprisonment, a $10,000 fine, and 3 years of supervised release and restitution.
Investigation of this case was conducted by the U.S. Department of Labor, Office of Labor-Management Standards. Assistant United States Attorney Toby W. Lathan and Special Assistant United States Attorney Tamika G. Moses are representing the government in this case.
Fayetteville Man Sentenced to More Than 21 Years for Drug Trafficking and Firearm OffenseRead the Press Release
RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that Senior United States District Judge W. Earl Britt sentenced CALVIN BRUCE BEARD, a/k/a “40 Cal.”, 39, of Fayetteville to 262 months’ imprisonment, followed by 5 years of supervised released.
On October 1, 2018, BEARD pled guilty to conspiracy to distribute and possess with intent to distribute 28 grams or more of cocaine base (crack) and a quantity of cocaine and possession of a firearm in furtherance of a drug trafficking crime.
In April 2017, the Fayetteville Police Department, with the assistance of a confidential informant, conducted controlled purchases of cocaine, cocaine base, and/or firearms from BEARD, a convicted felon. During drug transactions, BEARD sold the confidential informant an SKS assault rifle and a fully-automatic Yugoslavian machine gun, both which contained more than 15 rounds of ammunition.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was brought using 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 violence crime rate, drug trafficking, and crimes against law enforcement.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Fayetteville Police Department.
Assistant United States Attorney Robert J. Dodson prosecuted the case for the government.
Fifteen Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging BARTOLO ALVAREZ-CRUZ, age 32, of Mexico, JORGE ALBERTO MALDONADO-BROON, age 35, of Mexico, ANTONIO CANDELA-SANTOS, age 42, of Mexico, ACELINO CORONA-ARAUJO, age 45, of Mexico, MARIO EXEQUIAS GARAY, age 44, of El Salvador, IVAN GONZALEZ-COLON, age 28, of Mexico, DENIS JOEL GUTIERREZ-RIVAS, age 34, of Honduras, RUBEN GUZMAN-VALERIO, age 34, of Mexico, RAMON HERNANDEZ-LOPEZ, age 44, of Mexico, DLADIMIR AQUILINO MORALES-DIAZ, age 22, of Guatemala, ELDER TOMAS MORALES-DIAZ, age 35, of Guatemala, ALEJANDRO OLIVA-HERNANDEZ, age 23, of Mexico, JESUS ORTIZ-JIMENEZ, age 28, of Mexico, ALEJANDRO PIZANA-MORONES, age 24, of Mexico, RAMON CRUZ-CRISANTO, age 34, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of illegal reentry of a deported alien, ALVAREZ-CRUZ, found in Wake County, MALDONADO-BROON, previously deported twice and found in Wake County, CANDELA-SANTOS, previously deported seven times and found in Wake County, CORONA-ARAUJO, found in Wake County, GARAY, found in Wake County, GONZALEZ-COLON, found in Wake County, GUTIERREZ-RIVAS, previously deported three times and found in New Hanover County, GUZMAN-VALERIO, previously deported three times and found in Wake County, D. A. MORALES-DIAZ, found in Wake County, E.T. MORALES-DIAZ, found in Wake County, OLIVA-HERNANDEZ, found in Wake County, ORTIZ-JIMENEZ, previously deported twice and found in Johnston County, and PIZANA-MORONES, previously deported three times and found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
HERNANDEZ-LOPEZ, previously deported twice and found in Johnston County, is alleged to have been previously deported subsequent to a felony conviction (possession of cocaine). Therefore, if convicted, he would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of illegal reentry subsequent to an aggravated felony (possession with intent to distribute and distribution of methamphetamine), CRUZ-CRISANTO, previously deported twice and found in Wake County, would face maximum penalties of 20 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations.
Wilmington Gang Leader Sentenced on Drug and Gun Charges Following Undercover OperationRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge James C. Dever, III, sentenced Victor Eugene Dorm, 30, of Wilmington to 240 months’ imprisonment, followed by 5 years of supervised release.
On November 14, 2018, DORM pled guilty to five counts: conspiracy to distribute and possess with intent to distribute a quantity of cocaine and 28 grams or more of crack cocaine; distribution of a quantity of heroin; manufacture, distribution, and possession with intent to distribute 28 grams or more of cocaine base; use and carry a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a convicted felon.
DORM was the fourth of six co-defendants to be sentenced in this case. Three men have received sentences ranging from 60 to 204 months:
- On May 23, 2018, Eugene Telphia Grady, Jr., was sentenced to 60 months’ imprisonment and 6 years of supervised release, following his guilty plea to a charge of conspiring to distribute crack cocaine.
- On October 3, 2018, James Flowers was sentenced to 120 months’ imprisonment and 5 years of supervised release, following a guilty plea to conspiring to manufacture, distribute and possess cocaine and 28 grams of more of crack cocaine; manufacture, distribution, and possession with intent to distribute 28 grams or more of crack cocaine; and use and carry a firearm in furtherance of a drug trafficking crime.
- Also on October 3, 2018, Sylvester Lorenzo Hooper, Jr., was sentenced to 204 months’ imprisonment and 8 years of supervised release, following his guilty plea to conspiring to distribute 28 grams or more of crack cocaine; possession of a firearm by a convicted felon; and distribution of a quantity of crack cocaine.
Two additional co-defendants have entered guilty pleas and have sentencing hearings pending:
- On July 9, 2018, Rufus “Rudy” Parker pled guilty to six counts of distributing cocaine, and on November 30, 2018, he pled guilty to an additional count of conspiring to distribute powder cocaine.
- On January 22, 2019, Joseph Anthony Vaught pled guilty to conspiring to distribute and possess with intent to distribute 500 grams or more of cocaine; and possessing a firearm in furtherance of a drug trafficking crime.
Parker and Vaught are currently scheduled to be sentenced in April of this year.
These convictions are the result of a long-term undercover operation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and officers of the Wilmington Police Department, beginning in December 2016 and continuing until the return of the federal indictment in August of 2017. Victor DORM, a principal target of the investigation, was a leader of a subset of the Bloods street gang known as the Bounty Hunter Bloods. DORM held a leadership role in the gang and had three prior state felony drug convictions and two prior state convictions for being a felon in possession of a firearm.
During the course of the investigation, law enforcement was able to conduct a large numbers of controlled purchases of contraband from each of the six co-defendants, as well as from five additional men who have pled guilty in separate federal cases. The confidential informant and undercover agents conducted roughly three-dozen transactions, purchasing cocaine, crack cocaine, heroin, counterfeit currency, and multiple firearms. DORM himself made 13 of the sales. In transactions dating from December 14, 2016, to July 10, 2017, DORM sold the CI nearly 600 doses of heroin, 100 doses of fentanyl, 4 grams of crack cocaine, over $1,000 in counterfeit currency, an M4 assault rifle, a second rifle, and five handguns, including two M-11 9mm pistols with high capacity magazines. On another occasion, law enforcement witnessed DORM manufacturing crack cocaine.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Wilmington Police Department, the New Hanover County Sheriff’s Office, and the Brunswick County Sheriff’s Office. Assistant United States Attorneys Jake D. Pugh represented the government.
One of the Largest Fentanyl Distributors in Wilmington Gets 17 Years in Federal PrisonRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge Terrence W. Boyle sentenced SHAWQI GRAY, 37, of Wilmington to 204 months imprisonment, followed by 5 years of supervised release.
On November 6, 2018, GRAY plead guilty to possession with the intent to distribute 100 grams or more of heroin and a quantity of fentanyl and possession of a firearm in furtherance of drug trafficking crime.
On November 30, 2017, the New Hanovery County Sheriff’s Office conducted a search of GRAY’s residence and a storage container on the property. Law enforcement found the following items: more than 150 grams of a mixture of heroin and fentanyl, more than 150 grams of a mixture of heroin and ketamine, 5 handguns (two of which were stolen) and more than $47,000 in cash. The investigation uncovered that GRAY had been involved in the distribution of more than a kilogram and half of a mixture of heroin and fentanyl from July until November 2017.
On August 4, 2016, the Easton, Pennsylvania Police searched GRAY’S residence. Gray was not present. Law enforcement found 20 grams of heroin, 68 grams of crack cocaine and more than $19,000 in cash.
This case is part of an FBI lead OCDETF operation “Tooth Fairy”. This is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). This investigation is focused on the distribution of heroin from New Jersey to New Hanover, Brunswick, Bladen, Duplin, and Sampson Counties and associated gang activities.
This case is also 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.
The investigation of this case was conducted by the Federal Bureau of Investigation Coastal Carolina Criminal Enterprise Task Force, The Bureau of Alcohol, Tobacco, Firearms, & Explosives, New Hanover County Sheriff’s Office and the Easton, Pennsylvania Police Department. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the government.
Man Sentenced to More than 16 Years for Violent Hobbs Act Robbery in Elizabeth CityRead the Press Release
ELIZABETH CITY – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, Chief United States District Judge Terrence W. Boyle sentenced NATHAN LAMONTE SILVER, 44, of Clarksville, Tennessee to 200 months imprisonment, followed by 3 years of supervised release.
SILVER was named in an Indictment filed on May 2, 2018 charging him with a Hobbs Act Robbery on October 19, 2017. On November 5, 2018, SILVER pled guilty to the charge.
According to the investigation, on October 19, 2017, SILVER entered Star One Tobacco and Wine in Elizabeth City and went to the beer cooler of the store. SILVER picked up a beer and immediately dropped it. After acquiring another beer, the defendant took it to the register and attempted to pay with a credit card; however, the card was declined. SILVER advised the clerk, who is also the store owner, he would be back with some money. Thinking SILVER had left the store, the clerk went to the back room in order to get a broom to clean up the broken beer bottle. SILVER entered the back room behind the clerk, punched the clerk, knocking the clerk to the ground, and locked the door to the room. The clerk told SILVER to take the money from the register and leave. Instead, SILVER continued punching the clerk in the head, pulled a pocket knife, and stabbed it into the left side of the clerk’s neck. The clerk was able to kick the knife breaking the blade from the handle. SILVER attempted to stab the clerk on top of the head with the knife handle. Finally, SILVER placed the clerk in a headlock cutting off the clerk’s air supply; however, he did not lose consciousness.
While SILVER and the clerk struggled in the backroom, an off-duty employee entered the store and heard the clerk yelling for help from the backroom. Noticing the door was locked and hearing a commotion in the room, the off-duty employee kicked in the door, startling SILVER, who released the clerk. The clerk and off-duty employee fled from the building. SILVER then broke into the cash register and stole $2,360 before exiting the business.
Emergency personnel were called, and the wounded clerk was taken to a nearby hospital; however, due to the severity of his injuries, the clerk had to be airlifted to a hospital in Norfolk, Virginia, for treatment of a throat laceration, head trauma, and a swollen left ear. Early in the morning on October 20, 2017, Elizabeth City Police Departmane officers located and arrested SILVER without incident. SILVER was still in possession of the knife handle when he was apprehended. The stolen money was not recovered.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through 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.
Investigation of this case was conducted by the Elizabeth City Police Department and the Bureau Alchol, Tobacco, Firearms and Explosives. Assistant United States Attorney Charity L. Wilson represented the government.
Four Indicted on Conspiracy to Commit Marriage Fraud, Marriage Fraud, Harboring an Alien to Come to the United States, Visa Fraud and False Statements Under Oath ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging EDWARD KUMI ANGUAH, age 39, a United States citizen serving in the United States Army, KWAPHOOM EUGENE HOOMKWAP, age 30, of Nigeria, SULEMANA IBRAHIM, age 39, of Ghana, and KAHMID MOHAMMED MURTADA, age 34, a United States citizen serving in the United Sates Army, with conspiracy to commit marriage fraud, marriage fraud, harboring an alien to come to the United States, visa fraud and false statement under oath.
If convicted of conspiracy to commit marriage fraud, harboring an alien to come to the United States, and visa fraud, ANGUAH, found in Cumberland County, would face maximum penalties of twenty five years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of conspiracy to commit marriage fraud and harboring certain aliens to come to the United States, HOOMKWAP, found in Cumberland County, and MURTADA, found in Cumberland County, would face maximum penalties of fifteen years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of conspiracy to commit marriage fraud, marriage fraud, harboring certain alien to come to the United States, visa fraud, and false statements under oath, IBRAHIM, found in Cumberland County, would face maximum penalties of thirty five years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The case was investigated by the Document and Benefit Fraud Task Force (DBFTF) in the Eastern District of North Carolina lead by Homeland Security Investigations.
Fayetteville Man Sentenced to 20 Years for Drug Distribution and Firearm OffensesRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that United States District Judge James C. Dever III sentenced GEORGE HADDEN, 36, of Fayetteville, North Carolina to 240 months imprisonment, followed by five years of supervised release. HADDEN was sentenced as an Armed Career Criminal.
HADDEN was named in an Indictment filed on August 14, 2018, charging him with one count of possession with intent to distribute heroin, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of felon in possession of a firearm. On November 14, 2018, HADDEN pled guilty.
According to the investigation, on April 15, 2018, HADDEN was observed in suspected drug distribution activity. A traffic stop of HADDEN’s vehicle revealed nineteen grams of heroin, which was packaged for distribution, and a stolen handgun. HADDEN is a multiple-time convicted felon.
That effort has been implemented through 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.
Investigation of this case was conducted by the Fayetteville Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorney Lucy Partain represented the government.
Wilmington Man Sentenced After Illegally Stockpilling Firearms Despite Mental Health HistoryRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge James C. Dever, III, sentenced Hasan Eminof, 20, of Wilmington to 36 months’ imprisonment, followed by 3 years of supervised release. On November 19, 2018, EMINOF pled guilty to a three-count Indictment, charging two counts of making a false statement to a licensed firearm dealer and one count of possession of a firearm by a person who had been adjudicated mentally defective or committed to a mental institution.
The investigation revealed that on April 14, 2015, the Brunswick County District Court ordered that EMINOF be involuntarily committed to a mental institution for a period of 15 days due to mental illness and being a danger to himself. Following a review at the end of that period, he was committed for an additional 15 days. In addition, on January 22, 2016, the Wayne County District Court in Goldsboro, North Carolina, ordered that EMINOF be involuntarily committed to a mental facility for 30 days based on his being mentally ill and a danger to himself and others. This mental health history rendered EMINOF ineligible to possess firearms.
EMINOF, nonetheless, tried to purchase firearms on at least three occasions from June to October of 2016. In particular, on June 8, 2016, EMINOF attempted to purchase an AR-15 rifle at Backwater Guns in Wilmington, and on July 21, 2016, he attempted to purchase a “long gun” at Bullzeye Shooting, also in Wilmington. Both times, EMINOF completed the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Form 4473, the over the counter firearm transaction record. Question 11.f of the form asked, “Have you ever been adjudicated as a mental defective OR have you ever been committed to a mental institution?” In both instances, contrary to his history, EMINOF checked the “No” box and signed the form, indicating that all his answers were true, correct, and complete. Despite the misrepresentations, the background checks correctly determined that he was a prohibited person, and the firearms dealers declined to make the sales.
Still, on March 4, 2018, EMINOF was found to be in possession of multiple firearms. That day, EMINOF was on state probation, and his probation officers conducted a warrantless search of his Wilmington residence. When they arrived, they found EMINOF sitting in his parked car, which smelled of marijuana. Searching the car, the officers found not only a small amount of marijuana but also a stockpile of firearms – four handguns, a pistol-grip shotgun, and a rifle. Four of the firearms were loaded, and officers also seized additional loaded magazines for the handguns as well as loose ammunition for the shotgun and rifle. In addition to the firearms and ammunition, officers recovered from the car four knives, a brass knuckles Taser device, six cell phones, and a full-head goblin mask.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case is being investigated by the Federal Bureau of Investigation and the New Hanover County Sheriff’s Office. Assistant United States Attorney Jake D. Pugh is prosecuting the case for the government.
Tabor City Man Sentenced on Charge for Felon in Possession of a FirearmRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that in federal court, United States District Judge James C. Dever III sentenced BRIAN DAVID RIGGINS, 26, from Tabor City, North Carolina, to 84 months in prison, followed by 3 years of supervised release.
RIGGINS was charged in an indictment filed in the Eastern District of North Carolina June 6, 2018. On August 23, 2018 RIGGINS pled guilty to the Indictment, which charged him with possession of a firearm by a convicted felon.
RIGGINS was charged as a result of an incident that took place on September 7, 2017, when RIGGINS was identified as the driver of a stolen vehicle in the Green Acres community of Columbus County, North Carolina. When law enforcement officers activated their lights, RIGGINS attempted to flee by engaging in a high speed chase throughout the residential community. RIGGINS then fled on foot, dropping a Taurus .40 caliber semi-automatic handgun and a bag containing 2.6 grams of crack cocaine. He was quickly apprehended, and law enforcement identified the handgun as stolen.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through 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.
The investigation of this case was conducted by the Columbus County Sheriff’s Office, Horry County (South Carolina) Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Laura Howard prosecuted the case on behalf of the United States.
Ash Man Sentenced to 120 Months in Prison for Drug Trafficking & Firearm OffenseRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today in federal court, Chief United States District Judge Terrence W. Boyle sentenced VICTOR DEMETRIOUS WATSON, 27, of Ash, North Carolina, to 120 months in prison, followed by 5 years of supervised release.
WATSON was charged in a three-count Superseding Indictment filed on May 16, 2018. On August 13, 2018, WATSON pled guilty to one count of Possession with Intent to Distribute a Quantity of Heroin, and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
An investigation was initiated by the Brunswick County Sheriff’s Office (BCSO) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) after receiving anonymous information regarding WATSON being in possession of stolen firearms. On December 6, 2017, the BCSO received an anonymous tip that WATSON was in possession of numerous stolen firearms and was in the process of “moving” them.
On December 6, 2017, in an attempt to determine if WATSON was in possession of stolen firearms, two confidential informants, CI1 and CI2, were sent to WATSON’S home in order to conduct a controlled purchase of heroin. The CIs met WATSON at the back door of WATSON’S home and purchased 10 bindles1 (1 gram) of heroin from him for $80. Based upon the CIs’ observations, WATSON possessed an additional 40 to 50 bindles of heroin.
Investigators executed a search of WATSON’S home and vehicle on December 7, 2017. Law enforcement located a .40 caliber semi-automatic handgun and a 9 mm semi-automatic handgun, one box of .40 caliber ammunition, one box of 9 mm ammunition, 44 bags (4.4 grams) of heroin, 23 units of Alprazolam, 1 unit Acetaminophen/Oxycodone hydrochloride (10 milligrams), and $330 which included the $80 of buy money. Prior to being taken into federal custody, WATSON admitted the firearms and heroin were his. Law enforcement determined the firearms had not been reported stolen.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s 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.
That effort has been implemented through 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.
This case was brought by the United States Attorney’s Office through partnership with the Brunswick County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Scott A. Lemmon.
William P. Barr Confirmed as 85th Attorney General of the United StatesRead the Press Release
President Donald J. Trump participates in swearing-in of William P. Barr administered by U.S. Supreme Court Chief Justice John Roberts on February 14, 2019. Attorney General Barr's wife, Christine, holds the Bible. (Official White House Photo by Tia Dufour)
WASHINGTON – Today, William P. Barr was confirmed by the U.S. Senate to be the 85th Attorney General of the United States. Following the vote, President Donald J. Trump participated in the swearing-in of Mr. Barr during a ceremony in the Oval Office of the White House, where U.S. Supreme Court Chief Justice John Roberts administered the oath of office. Mr. Barr’s wife, his three daughters and their spouses, and his grandchildren attended the ceremony. Mr. Barr joins John Crittenden (1841 and 1850-1853) as one of only two people in U.S. history to serve twice as Attorney General.
Mr. Barr is rejoining the Department of Justice where he previously served as the 77th Attorney General of the United States from 1991 to 1993 under President George H.W. Bush. Mr. Barr also served as the Deputy Attorney General from 1990 to 1991 and as the Assistant Attorney General of the Office of Legal Counsel from 1989 to 1990. While serving at the Department, Mr. Barr helped create programs and strategies to reduce violent crime and was responsible for establishing new enforcement policies in a number of areas including financial institutions, civil rights, and antitrust merger guidelines. Mr. Barr also led the Department’s response to the Savings & Loan crisis; oversaw the investigation of the Pan Am 103 bombing; directed the successful response to the Talladega prison uprising and hostage taking; and coordinated counter-terrorism activities during the First Gulf War.
Most recently, Mr. Barr served as Of Counsel at Kirkland & Ellis. Before his work at Kirkland & Ellis, he served as Executive Vice President and General Counsel for GTE Corporation from 1994 until 2000 and as Executive Vice President and General Counsel of Verizon from 2000 to 2008.
Mr. Barr served as a law clerk under Judge Malcolm Wilkey of the U.S. Court of Appeals for the District of Columbia Circuit, and from 1982 to 1983, served on the White House Domestic Policy Staff under President Ronald Reagan. He received his A.B. in government in 1971 and his M.A. in government and Chinese studies in 1973, both from Columbia University. From 1973 to 1977, Mr. Barr served in the Central Intelligence Agency before receiving his J.D. with highest honors from George Washington University Law School in 1977.
The Department of Justice welcomes back Attorney General Barr and looks forward to his leadership in upholding the rule of law and protecting the rights of all Americans.
Durham Resident Sentenced for Conspiracy Targeting North Carolina MedicaidRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced TAMARA PERRY MCCAFFITY, 57, of Durham, North Carolina to 46 months imprisonment, followed by 3 years of supervised release. MCCAFFITY was also ordered to forfeit various real estate properties and to pay restitution in the amount of $523,783.00 to North Carolina Medicaid, among other terms of the judgment.
MCCAFFITY was named in a Criminal Information filed on July 17, 2018 which charged her with conspiracy to commit health care fraud. On October 19, 2018, MCCAFFITY pled guilty to the charge.
According to the charging instrument, statements made in open court, and other public information, MCCAFFITY operated two mental health businesses in North Carolina (Dreamworks II and Prominence Consulting & Therapeutic Services) that were used to submit over $900,000 in fraudulent billings to Medicaid over a three-year period. As part of the conspiracy, the billings submitted by MCCAFFITY’s companies claimed reimbursement for mental health services that were never rendered. For example, the Dreamworks II submissions included claims in which the rendering clinician supposedly conducted one-hour counseling sessions for more than 24 clients in a single day. Both Dreamworks II and Prominence Consulting also used stolen Medicaid beneficiary information and/or clinician information. Prominence Consulting, for instance, was a shell company registered to an empty office suite in Raleigh, but it submitted thousands of false claims seeking reimbursement for services purportedly rendered on behalf of Medicaid beneficiaries. In truth, no services were ever provided by Prominence, and the Medicaid beneficiary and clinician information listed on the claims was fraudulently obtained and used in furtherance of the scheme.
Mr. Higdon commented: “The defendant engaged in an elaborate scheme to defraud the taxpayers of this country and we are very pleased with the sentence the court imposed. Prorection of government programs designed to help the most vulnaerable among us is a key priority of this office and of the United States Justice Department.”
“When people defraud the Medicaid program, they’re cheating taxpayers and taking away resources from people who need healthcare,” said Attorney General Josh Stein. “My office will continue to hold people responsible for these fraudulent practices.”
MCCAFFITY’s co-conspirators included Christopher Leon Brown, who was previously convicted and sentenced by the Court to 40 months in prison.
Investigation of this case was conducted by the Federal Burean of Investigation (FBI) and the North Carolina Department of Justice, Medicaid Investigations Division. Assistant United States Attorney Adam F. Hulbig represented the government.
Wilson County Man Sentenced to 12 Years for Methamphetamine Drug ConspiracyRead the Press Release
GREENVILLE – United States Attorney Robert J. Higdon, Jr. announced that in federal court, Senior United States District Judge Malcolm J. Howard sentenced KYLE ROBERT PERRY, 27, of Kenly, North Carolina to 144 months imprisonment, followed by 5 years of supervised release.
The prosecution of PERRY was a part of an Organized Crime and Drug Enforcement Task Force Operation (OCDETF), which has focused on methamphetamine manufacturers and distributors in Wilson and Wayne counties.
PERRY was named in an eight-count Indictment filed on December 6, 2017 charging him with conspiracy to manufacture, distribute, dispense and possess with the intent to distribute methamphetamine and a mixture and substance containing a detectable amount of methamphetamine from 2009 until December 15, 2015; possession of equipment, chemicals, products and materials with the intent to manufacture methamphetaime; and distribute of a quantity of a mixture and substance containing a detectable amount of methamphetamine. On April 9, 2018, PERRY pled guilty to the conspiracy charge.
The investigation showed that PERRY was a part of a drug trafficking organization that manufactured and distributed methamphetamine in Wilson County, North Carolina. PERRY utilized at least five other people to purchase pseudoephedrine on his behalf, which is one of the main ingredients utilized in the manufacturing of methamphetamine. On September 3, 2015, officers conducted a search of PERRY’s home and located several items utilized in the manufacturing of methamphetamine including a hydrochloric generator, a stripped lithium battery, a bottle with tubing and an empty pseudoephedrine package. Due to the hazardous nature of these items, they were removed by the North Carolina State Bureau of Investigation’s Clandestine Unit. PERRY’s manufacturing of methamphetamine created a substantial risk of harm to human life or the environment.
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.
That effort has been implemented through 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.
Investigation of this case was conducted by the North Carolina State Bureau of Investigation, Wilson County Sheriff’s Office, and Wilson Police Department. Assistant United States Attorney Dena King represented the government.
United States Attorney’s Office for the Eastern District of North Carolina Collects over $13 Million in Civil and Criminal Actions in Fiscal Year 2018, and $4.6 Million in Asset Forfeiture ActionsRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announced today that his office collected over $13.5 million in criminal and civil actions in fiscal year 2018. Of this amount, $8,410,643.89 was collected in criminal actions and $5,113,040.40 was collected in civil actions. Additionally, over $4.6 million was collected in asset forfeitures.
The Eastern District of North Carolina also collaborated with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $13,983.13. Of this amount, $5,733.13 was collected in criminal actions and $8,250 was collected in civil actions.
Overall, the Justice Department collected nearly $15 billion in civil and criminal actions in fiscal year ending on September 30, 2018. The $14,839,821,650 in Fiscal Year 2018 collections is nearly seven times the appropriated $2.13 billion ($2,136,750,000) budget for the 94 U.S. Attorneys’ offices.
“The men and women of the U.S. Attorneys’ offices across the country work diligently, day in and day out, to see that the citizens of our nation receive justice. The money that we are able to recover for victims and this country as a whole is a direct result of their hard work,” Director James A. Crowell, IV, Executive Office for U.S. Attorneys.
In the past fiscal year, the Eastern District of North Carolina has returned millions of dollars to crime victims. For example, in United States v. Justin Lawrence Daniel, over $2.3 million was recovered for victims of the defendant’s criminal conduct. In in United States v. Mittesh Das, $750,000 was recovered for victim restitution and paid at the time of sentencing.
The District has also recovered significant taxpayer money lost to fraud or other misconduct, collected civil fines imposed for violations of federal law, and collected civil debts owed to various federal agencies. For example, in United States v. Physicians Pharmacy Alliance, $1.7 million was recovered for the Health and Human Services’ Center for Medicare & Medicaid Services and for the North Carolina Medicaid Program. The United States has recovered an initial payment of $750,000 from Rouseco, Inc, toward a $5.8 million judgment in United States v. Rouseco, Inc.
“We will use every available tool to aggressively collect victim restitution and criminal fines, and recover taxpayer dollars that are either lost to fraud or otherwise owed to government agencies,” said Mr. Higdon. “Asset forfeiture also serves important law enforcement interests, and we will continue to aggressively forfeit the proceeds of crime and the assets used to facilitate it. We are proud of the men and women in our office who dedicate themselves each and every day to ensuring justice through their collection efforts. They are to be congratulated for their tremendously successful efforts.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Tabor City Man Sentenced to 14 Years in Prison for Drug Trafficking & Money Laundering OffensesRead the Press Release
GREENVILLE – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that Senior United States District Judge Malcolm J. Howard sentenced JUSTIN LEE MYERS, 34, of Tabor City, North Carolina, to 168 months in prison, followed by four years of supervised release.
MYERS was charged as part of a 22-count Indictment filed on November 19, 2017 naming 8 defendants. On February 5, 2018, MYERS pled guilty to Conspiracy to Distribute and Possess with Intent to Distribute Cocaine Base (Crack), Heroin, Fentanyl, and Marijuana, and to Conspiracy to Commit Money Laundering.
Beginning in December 2008, Columbus County Sheriff’s Office (CCSO) in Tabor City, North Carolina, responded to calls involving the MYERS Drug Trafficking Organization (DTO) regarding various criminal and drug related activity in an area known as the “Sandpit.” The Sandpit consisted of approximately 25 mobile homes reachable after passing through a manned checkpoint. Investigation determined that the checkpoint was established as a lookout for law enforcement, and to protect the area from rival drug dealers. The checkpoint was normally manned by one to two armed members of the DTO.
Wire intercepts, confidential informants (CIs), and surveillance confirmed that the MYERS DTO primarily operated in Columbus County. From February 2017 to May 2017, CIs were utilized to conduct a series of controlled purchases from members of the DTO. Witness statements and subsequent wire intercepts, which spanned from May 2, 2017, to June 8, 2017, determined that MYERS supplied the heroin, cocaine, crack, and marijuana, in addition to directing his co-conspirators. Furthermore, the wire intercepts revealed that MYERS and others had attempted to launder the proceeds of their drug trafficking.
MYERS purchased a 2014 Corvette from Everett Chevrolet in Hickory, NorthCarolina, for $67,634, a 2014 Porsche from Island Chrysler in Pawley’s Island, South Carolina, for $77,983 and several other vehicles claiming his income as legitimate as the owner/operator of Monte Cutz Barber Shop.
This prosecution is part of an extensive investigation by the United States Attorney’s Office’s 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.
That effort has been implemented through 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.
This case was investigated by the Columbus County Sheriff’s Office, the Internal Revenue Service-Criminal Investigation, and the Wilmington Office of the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Bradford Knott.
Orrum Man Charged for Possession of Firearm by a Felon After Allegedly Firing Shots at OfficersRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that in federal court, before United States Magistrate Judge Robert B. Jones, Jr., GARY LYNN GATLIN, of Orrum, North Carolina, was charged in a federal Criminal Complaint for possession of a firearm by a felon.
The affidavit attached to the Criminal Complaint alleges that GATLIN possessed a firearm as a convicted felon on February 8, 2019. On February 8, 2019, two law enforcement officers were conducting surveillance near Water Tower Road and Gatlin Drive in Orrum, North Carolina. It is alleged that GATLIN confronted the officers about why they were near his property and left the scene. Shortly thereafter, GATLIN returned to the area with a shotgun. GATLIN fired one shot into the air and fired multiple shots in the direction of the officers, which struck their vehicle. The officers then left the scene and GATLIN fled the area. Prior to February 8, 2019, GATLIN had been convicted of Common Law Robbery in Robeson County. GATLIN was taken into custody on February 12, 2019.
The charge and allegations contained in the Criminal Complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
This case was brought using 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.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Robeson County Sheriff’s Office, and Wake County Sheriff’s Office contributed to the investigation of this case.
Rocky Mount Man Sentenced to 17 Years in Prison for Violent Business RobberiesRead the Press Release
GREENVILLE – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, Senior United States District Judge Malcolm J. Howard sentenced DARIUS COTY WHITAKER, 24, to 204 months imprisonment followed by 5 years of supervised release.
WHITAKER was named in an eight-count Indictment filed on April 27, 2017. On December 7, 2017, WHITAKER pled guilty to one-count each of Brandishing a Firearm in Furtherance of a Crime of Violence and Discharging a Firearm in Furtherance of a Crime of Violence.
An investigation conducted by the Rocky Mount Police Department (RMPD) determined that WHITAKER, armed with a handgun, robbed four businesses in the Rocky Mount area from September 6, 2016, to September 15, 2016. On September 19, 2016, an anonymous caller informed the RMPD that WHITAKER appeared to be the suspect in a surveillance video depicting one of the robberies. On September 23, 2016, WHITAKER confessed to law enforcement officials that he committed the four robberies because he was looking for money to buy cocaine. WHITAKER further admitted that he had previously stolen the two firearms he used during the robberies.
The evidence showed that a Dollar Tree employee of the store on Cobb Corners was approaching her vehicle in the parking lot when WHITAKER confronted the employee and demanded she give him the store’s money. When the clerk told WHITAKER she did not have any money, he pulled a stolen handgun from his waistband, pointed it at her, and threatened her with bodily harm. After rifling through her pocketbook and not finding any money, WHITAKER stated, “I know your name, if you call the cops, I’ll come back for you.” WHITAKER then fled the scene on foot.
WHITAKER, armed with a stolen loaded .38 caliber revolver, entered Marathon Gas Station in Battleboro, North Carolina and jumped over the counter. WHITAKER then pointed the firearm at the store clerk’s head and ordered that he open the cash register. As WHITAKER began to approach the register, the clerk grabbed WHITAKER’s firearm. A ground struggle ensued, during which WHITAKER hit the employee several times with his fist and also discharged a firearm round that struck the floor. The employee then bit WHITAKER, causing him to drop the firearm. During the altercation, another store employee activated the security alarm. WHITAKER was able to steal the clerk’s cellphone, identification card, and credit card, before fleeing the scene on foot.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through 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.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Nash County Sheriff’s Office, Rocky Mount Police Department, and the Halifax County Sheriff’s Office. Assistant United States Attorney James Kurosad prosecuted the case on behalf of the United States.
Raleigh Drug Dealers Receive More Than 15 Years Each for Their Roles in a Drug Trafficking OrganizationRead the Press Release
NEW BERN — United States Attorney Robert J. Higdon, Jr. announces that United States District Judge Louise Flanagan sentenced William ISAAC DANIELS, 38, of Wake County to 211 months’ imprisonment, followed by 5 years of supervised release and BOB BIONGO, 31, of Wake County to 180 months’ imprisonment, followed by 10 years of supervised release
On August 24, 2018, DANIELS plead guilty to conspiracy to distribute and possess with the intent to distribute 28 grams or more of cocaine base (crack) and distribution of a quantity of cocaine.
On August 16, 2018, BIONGO plead guilty to conspiracy to distribute with intent to distribute two hundred eighty (280) grams or more of a mixture and substance containing a detectable amount of cocaine base, 3-counts of distribute and possess with intent to distribute a quantity of detectable amount of cocaine base, aiding and abetting, and to possess with intent to distribute two hundred eighty (280) grams or more of a mixture and substance containing a detectable amount of cocaine base (crack).
Between May and June 2017, the Raleigh Career Criminal Unit and the Federal Bureau of Investigation conducted three controlled purchases from BIONGO. The first purchase occurred within a 1/10 of a mile of Mary Phillips High School in Raleigh.
Between January and February 2017, the Raleigh Career Criminal Unit and the Federal Bureau of Investigation conducted two controlled purchases from DANIELS. One of the deals occurred in the bathroom of a local Raleigh restaurant in the middle of the day for approximately an ounce of crack cocaine.
On June 15, 2017, law enforcement served a search warrant on BIONGO’S residence in Raleigh. Law enforcement found more than 1 kilogram of crack cocaine, more than $7,000 and a cocaine press. BIONGO was arrested following a short foot chase.
On January 23, 2018, DANIELS was arrested at a residence in Franklin County. DANIELS was able to destroy a quantity of cocaine base before the agents were able to arrest him.
DANIELS was involved in distributing approximately 900 grams of cocaine base (crack) between November 2016 and the time of his arrest. BIONGO was involved in distributing more than a kilogram of crack cocaine. BIONGO was a validated gang member and had a North Carolina State prior conviction for possession with intent to sell and deliver a cocaine as a habitual felon.
This case was brought using 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.
The investigation of this case was conducted by the Federal Bureau of Investigation Safe Streets Task Force and the Raleigh Police Department Career Criminal Unit. Assistant United States Attorney Timothy Severo prosecuted the case.
Haitian Citizen Sentenced for Voting by an Alien in the 2016 General ElectionRead the Press Release
NEW BERN – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that DIEUDONNE SOIFILS, age 72, a citizen of Haiti and resident of Beaufort County, North Carolina, was sentenced by United States District Court Judge Louise Wood Flanagan to twelve (12) months’ probation and a $25 special assessment. SOIFILS’ sentencing follows his guilty plea to voting by an alien.
According to court records, SOIFILS was registered to vote in 2012 after executing a voter registration form claiming to be a United States citizen under penalty of perjury.
SOIFILS was assigned a polling station in Beaufort County, North Carolina. SOIFILS voted in the 2012 and 2016 General Elections held in part for the purpose of electing a candidate for the office of President, Vice-President, and Member of the House of Representatives.
The case was investigated by the Document and Benefit Fraud Task Force (DBFTF) in the Eastern District of North Carolina lead by Immigration and Customs Enforcement - Homeland Security Investigations, and assisted by Enforcement Removal Operations, and United States Citizenship and Immigration Services, among other agencies. The investigation as to voting fraud is ongoing.
Former North Carolina Board of Elections Election Official Sentenced to Prison for Aiding and Abetting Voting by an Alien in the 2016 General ElectionRead the Press Release
NEW BERN – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that DENSLO ALLEN PAIGE, age 66, of Wake County, North Carolina, was sentenced by United States District Court Judge Louise Wood Flanagan to two (2) months active time in the custody of the United States Bureau of Prisons, one (1) year supervised release, $250 fine, and a $25 special assessment. PAIGE’s sentencing follows her guilty plea to aiding and abetting voting by an alien.
According to court records, PAIGE, a paid volunteer and former election official with the North Carolina Board of Elections, advised Guadalupe Espinosa-Pena, a Mexican citizen, to register to vote and to vote in the 2016 General Elections.
PAIGE knew that Espinosa-Pena was not a United States citizen. Espinosa-Pena had been twice denied naturalization. However, PAIGE told Espinosa-Pena that “if he wanted his voice to be heard, he needed to vote.” PAIGE assisted Espinosa-Pena in completing his voter’s registration form.
The first question in Espinosa-Pena’s voter registration form was “Are you a citizen of the United States of America?” The form contained two boxes, one for “Yes” and one for “No.” The form further stated “IF YOU CHECKED ‘NO’ IN RESPONSE TO THIS QUESTION, DO NOT SUBMIT THIS FORM.”
According to statements made by PAIGE, she assisted Espinosa-Pena in the completion of the voter registration form and intentionally left the citizenship question unanswered. PAIGE said that she then submitted the form to a Board of Elections official for processing. At some later point, after the form had been submitted to the Board of Elections, some other person apparently checked the citizenship block “yes,” and Espinosa was allowed to register to vote.
Espinosa-Pena was assigned a polling station in Wake County, North Carolina. Espinosa-Pena voted in the 2016 General Election held in part for the purpose of electing a candidate for the office of President, Vice-President, and Member of the House of Representatives.
Mr. Higdon stated “The right to vote is a precious privilege available only to citizens of the United States. When a non-citizen votes in a federal election it serves to dilute and devalue the vote of American citizens and places the decision making authority of the American electorate in the hands of those who have no right to make those choices. This case is particularly disturbing as the defendant worked for the Board of Elections. My office will do its part to protect the rights of every American citizen to cast their vote freely and to have it counted fairly.”
The case was investigated by the Document and Benefit Fraud Task Force (DBFTF) in the Eastern District of North Carolina lead by Immigration and Customs Enforcement - Homeland Security Investigations, and assisted by Enforcement Removal Operations, and United States Citizenship and Immigration Services, among other agencies. The investigation as to voting fraud is ongoing.
Leland Man Sentenced Following Attempt to Illegally Obtain FirearmsRead the Press Release
NEW BERN — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge Louise W. Flanagan sentenced Howard Joseph Burchfield, 36, of Leland to 15 months’ imprisonment, followed by 3 years of supervised release. On October 18, 2018, Burchfield pled guilty to one count of making a false statement to a licensed firearm dealer.
The investigation revealed that on July 13, 2010, a judge for the Circuit Court of the First Judicial Circuit in and for Escambia County, Florida ordered that BURCHFIELD be involuntarily committed to a mental institution for a period of up to six months due to mental illness and threats of harm to others. In addition, on February 5, 2013, the 17th District Court in Brighton, Colorado, adjudicated BURCHFIELD as mentally defective. This mental health history rendered BURCHFIELD ineligible to possess firearms.
BURCHFIELD, nonetheless, tried to purchase at least five firearms from 2015 to 2018. In particular, on April 1, 2017, BURCHFIELD attempted to purchase a Remington 12-gauge shotgun at a Wal-Mart in Shallote, North Carolina. In doing so, he completed the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Form 4473, the over the counter firearm transaction record. Question 11.f of the form asked, “Have you ever been adjudicated as a mental defective OR have you ever been committed to a mental institution?” Contrary to his history, BURCHFIELD checked the “No” box and signed the form, indicating that all his answers were true, correct, and complete.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through 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.
The case is being investigated by the Federal Bureau of Investigation. Assistant United States Attorney Jake D. Pugh is prosecuting the case for the government.
Fayetteville Man Sentenced on Drug and Gun Charges Following Search WarrantRead the Press Release
NEW BERN — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge Louise W. Flanagan sentenced Travis Ladon Fulton, 42, of Fayetteville to 117 months’ imprisonment, followed by 5 years of supervised release. On October 17, 2018, FULTON pled guilty to three counts: possession with intent to distribute quantities of heroin, cocaine, and marijuana; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a convicted felon.
In August 2017, the Fayetteville Police Department learned through a confidential informant that FULTON was selling controlled substances out of a house in Fayetteville. Over the course of the next few weeks, law enforcement successfully directed the informant to make three controlled buys of drugs from FULTON at the residence – the first two of heroin and the third of cocaine.
On October 5, 2017, members of the Fayetteville Police Department executed a search warrant at the residence. Hidden in a small popcorn machine, officers found quantities of cocaine, crack cocaine, heroin, and marijuana. Officers found several other drug-related items throughout the kitchen: a digital scale with cocaine residue, Suboxone and Fentanyl patches, a razor blade knife with cocaine residue, and both unused and torn plastic sandwich bags. In a tool bag by the front door, officers found a loaded Glock .40 caliber handgun. The confidential informant had described seeing FULTON with the gun during one of the controlled buys. It had previously been reported to law enforcement as having been stolen.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through 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.
The investigation of this case was conducted by the Fayetteville Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorneys Jake D. Pugh represented the government.
Burgaw Man Sentenced to More Than 18 Years for Child Pornography OffenseRead the Press Release
RALEIGH — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, Chief United States District Judge Terrence W Boyle sentenced Cheyne Martin Potrafka, 35, of Burgaw to 220 months’ imprisonment, followed by a lifetime of supervised release. POTRAFKA pled guilty to one count of receipt of child pornography on November 1, 2018.
The charge arose from a state probation search. On August 9, 2016, Potrafka began a term of state post-release supervision, following a 2013 conviction on two counts of Indecent Liberties with a Child in Pender County Superior Court. Not long after POTRAFKA began post-release supervision, his probation officer became concerned about POTRAFKA’s compliance. Specifically, the officer learned that POTRAFKA admitted during sex-offender treatment to having sexually abused multiple children in the past and that members of Potrafka’s church had begun complaining about him lingering near children.
On March 1, 2017, probation conducted a warrantless search of POTRAFKA’s residence, pursuant to the terms of his supervision agreement. His computer and hard drives were examined on site and found to contain over 150 images and a video of child pornography. A later forensic examination revealed additional files that had been deleted. In an interview, Potrafka admitted to possessing child pornography. He also admitted to sexually abusing approximately 14 children during his lifetime, describing in detail the multiple incidents of past sexual abuse.
Mr. Higdon commented: “Cases like this one are among the most important we handle as federal prosecutors. This case alone revealed how pervasive this problem is and how offenders like this defendant often leave many victims in their wake-here, by the defendant’s own admission, 14 children plus those victimized in the videos and pictures he possessed. The Justice Department remains firmly committed to protecting our most vulnerable citizens-our children, by aggressively investigating and prosecuting these cases wherever we find them.”
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.
The investigation of this case was conducted by the Pender County Sheriff’s Office, the North Carolina State Bureau of Investigation, and the Federal Bureau of Investigation. Assistant United States Attorney Jake D. Pugh represented the government.
Three Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging EMERSON YUBIMY HERRERA-ALFARO, age 19, of El Salvador, JUAN ANGEL MURILLO RUIZ, age 34, of Honduras, and MARIO ALBERTO LLAMAS-HERNANDEZ, age 37, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of illegal reentry of a deported alien, HERRERA-ALFARO, previously deported two times and found in Granville County, and MURILLO RUIZ, previously deported and found in Sampson County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
LLAMAS-HERNANDEZ, previously deported and found in Wake County, is alleged to have been previously deported subsequent to a felony conviction (cocaine trafficking). Therefore, if convicted, he would face a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Federal Charges Announced for Disaster Fraud Related to Hurricane MatthewRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces an Indictment charging SHEILA RUFFIN, 50, of Rocky Mount, with 15 counts of Disaster Fraud related to the Hurricane Matthew recovery effort conducted by the Federal Emergency Management Agency (FEMA).
According to the allegations in the Indictment, RUFFIN, knowingly made materially false, fictitious, and fraudulent statements and representations, and knowingly made and used false writings and documents knowing the same to contain materially false, fictitious, and fraudulent statements and representations, to FEMA, in an application for benefits authorized, transported, transmitted, transferred, disbursed, and paid with FEMA funds in connection with the Presidential Major Disaster Declaration for the State of North Carolina, effective October 10, 2016.
RUFFIN is alleged to have made false statements and submitted fraudulent documentation in connection with applications for FEMA assistance following Hurricane Matthew. From January 31, 2017 to January 29, 2018, RUFFIN was awarded more than $11,000.00 in rental assistance to which she was not entitled.
If convicted of the Disaster Fraud charges, RUFFIN would face a maximum penalty of 30 years imprisonment, a $250,000 fine, a term of supervised release of not more than 3 years, and restitution.
The charges and allegations contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty in a court of law.
Investigation of this case was conducted by the U.S. Department of Homeland Security Office of Inspector General. Assistant United States Attorney Toby Lathan is prosecuting the case for the government.
Members of the public who suspect fraud involving disaster relief efforts, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to [email protected]. Learn more about the National Center for Disaster Fraud at www.justice.gov/disaster-fraud and watch a public service announcement here. Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.
Wilmington Man Receives More than 6 Years for Gun and Drug ConvictionsRead the Press Release
NEW BERN — Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announced that today, United States District Judge Louise Flanagan sentenced RONNELL MELVIN, 32, of New Hanover County to 83 months’ imprisonment, followed by 3 years of supervised release. On October 18, 2018, MELVIN pled guilty to possession of a firearm by a convicted felon and possession with intent to distribute a quantity of heroin and cocaine base (crack).
On December 29, 2017, Wilmington Police Officers responded to a shots fired call in the 600 block of Campbell Street, Wilmington North Carolina. When they arrived, officers observed MELVIN possessing a handgun. MELVIN was ordered to drop the gun and he complied with the officer’s directive. MELVIN was searched and found to have 2 cell phones, a quantity of crack cocaine and heroin and $229 on his person. MELVIN had a prior felony conviction for attempting to traffic in heroin by transportation.
This case was brought using 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.
The investigation of this case was conducted by the Federal Bureau of Investigation Safe Streets Task Force and the Wilmington Police Department. Assistant United States Attorney Timothy Severo prosecuted the case.
Raleigh Man Sentenced for Possession of a Firearm and Ammunition by a FelonRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, United States District Judge Louise W. Flanagan sentenced TRAEJAN JAHAD BARNES, 19, of Raleigh to 33 months imprisonment followed by 3 years of supervised release.
BARNES was named in an Indictment filed on June 6, 2018. On October 18, 2018, BARNES pled guilty to one-count of Possession of a Firearm and Ammunition by a Felon.
On April 18, 2018, investigators with the Raleigh Police Department observed an individual in the left rear passenger seat of a vehicle driven by another man and BARNES was observed in the right rear passenger seat of the vehicle. BARNES informed investigators that there was a firearm underneath him. As BARNES moved across the back seat to exit the vehicle, a loaded Ruger LC9 semi-automatic handgun fell onto the floorboard and was recovered by investigators. Further investigation determined that on March 15, 2018, the firearm was reported stolen in Wendell, North Carolina. Moreover, investigators determined that BARNES is prohibited from possessing firearms and ammunition due to his prior felony convictions.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Since 2017 the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
That effort has been implemented through 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.
The case was investigated by the Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney Daniel W. Smith prosecuted the case on behalf of the United States.
Justice Department Warns Taxpayers to Avoid Unscrupulous Tax Return PreparersRead the Press Release
WASHINGTON – As tax filing season begins, the Department of Justice warns taxpayers to beware of unscrupulous tax return preparers. The Department of Justice applies both civil and criminal tools at its disposal to shut down illegal tax return preparation activity. Taxpayers should always remain wary of tax return preparers who claim they can obtain larger refunds than others or engage in other unscrupulous practices.
While most tax return preparers are professional and honest, some prepare returns with false information in order to improperly boost a taxpayer’s refund or reduce their liability or to increase business and preparation fees. But, under the law, taxpayers are responsible for what is reported on their returns. When the IRS uncovers the falsehoods, the taxpayer can face penalties and interest and, if circumstances warrant, criminal prosecution.
“Fraudulent tax return preparers harm taxpayers, legitimate businesses, and the American public,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “The Justice Department is committed to working with our partners at the Internal Revenue Service to protect the law-abiding American public and the treasury by stopping this fraud.”
Every year, the Justice Department’s Tax Division, in collaboration with U.S. Attorney’s Offices, files dozens of civil actions throughout the United States seeking court orders to shut down tax return preparers who allegedly prepared false tax returns, and to punish dishonest tax return preparers for their fraudulent activities. When the evidence supports criminal enforcement action, the Department of Justice and U.S. Attorney’s offices pursue criminal prosecutions of tax return preparers.
In 2019, the Justice Department has already obtained several injunctions barring individuals from filing returns for others, and filed actions against numerous others:
- On Jan. 4, 2019, a federal court in Indianapolis, Indiana, permanently enjoined Antonio Chappell and G & A Tax Service LLC, from preparing federal tax returns for others. The court noted that the defendants had prepared tax returns with a wide range of scams, including falsifying reported income or losses to wrongfully increase or claim the Earned Income Tax Credit, fabricating education expenses to obtain the American Opportunity Credit for certain educational expenses; misrepresenting a taxpayer’s filing status; and reporting non-qualifying dependents to take advantage of the Additional Child Tax Credit.
- On Jan. 7, 2019, a federal court in Orlando, Florida, entered a preliminary injunction barring Erotida Harden, Michael Harden, Aida Cortes, Yahaira Claudio, Tamika Robenson, Natasha Williams, and Certified Taxes LLC, from acting as tax return preparers and directing them to immediately close all tax return preparation stores that they currently own directly or through any entity and not to reopen them without a court order.
- On Jan. 16, 2019, a federal court in Orlando, Florida, entered a preliminary injunction barring Marcgenson Marc, Tiana Character, LeNorris LaMoute, Dosuld Pierre, Shirleen Thales, Advanced Tax Services Inc., Genson Financial Group LLC, and Character Financial Solutions LLC from acting as tax return preparers and directing them to immediately close all tax return preparation stores that they currently own directly or through any entity and not to reopen them without a court order.
Examples of some recent criminal convictions obtained by the Tax Division include:
- On Jan. 28, 2019, a Minneapolis-based tax return preparer was sentenced to serve 121 months in prison for managing and directing a fraudulent return-preparation business, which prepared returns that reported false dependents, fake business income and losses, inflated deductions, inflated credits, and false filing statuses, in order to get customers inflated refunds.
- On Nov. 14, 2018, a Las Vegas, Nevada, tax return preparer was sentenced to 37 months in prison for aiding and assisting in the filing of false tax returns that included multiple false items, including charitable contributions, capital loss deductions, energy tax credits, and unreimbursed employee expenses—such as business meals and transportation expenses.
- On Sept. 13, 2018, a resident of Winton-Salem, North Carolina, who was licensed as an attorney in Georgia, was sentenced to 13 months in prison for aiding and assisting in the preparation of fraudulent tax returns.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers and tax scheme promoters. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found here. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
In addition, when selecting a tax return preparer:
- Be wary of tax return preparers who claim they can obtain larger refunds than others can.
- Avoid tax return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of your refund into their financial accounts.
- Ensure you use a preparer with a preparer tax identification number (PTIN). Paid tax return preparers must have a PTIN to prepare all or substantially all of a tax return.
- Use a reputable tax professional, who enters their PTIN on your tax return, signs the tax return, and provides you a copy of the return (as required).
- Consider whether the individual or firm will be around for months or years after filing the return to answer questions about the preparation of the tax return.
- Never sign a blank tax form.
- Check the person’s credentials. Only attorneys, CPAs, and enrolled agents can represent taxpayers before the IRS in all matters, including audits, collections, and appeals.
The IRS has some information on its website about selecting a return preparer and has launched a free directory of federal tax preparers and a list of tips for choosing a tax preparer.
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If you have questions, please use the contacts in the message or call the Office of Public Affairs at 202-514-2007.
Raleigh Man Sentenced to 8 Years on Firearm Charge Following Shooting IncidentRead the Press Release
NEW BERN — The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that United States District Judge Louise W. Flanagan sentenced Lafiamma Deonte Diboh, 31, of Raleigh to 96 months’ imprisonment, followed by 3 years of supervised release. DIBOH pled guilty to one count of possession of a firearm by a convicted felon on September 11, 2018.
In the early morning hours of January 29, 2017, Raleigh Police Department (RPD) officers responded to a disturbance call on Bragg Street in Raleigh. There, they found a woman standing in the middle of the street holding a towel to a laceration over her eye. The investigation revealed that earlier that night, the woman had gotten into a verbal altercation with the defendant’s girlfriend in a nearby apartment. DIBOH had violently intervened by pointing a handgun at the woman. When the woman pushed the gun away, DIBOH struck her four times in the face with the gun’s handle and dragged her outside of the apartment. Once outside, he again pointed the gun at her, then lowered the gun and fired a round. The gunshot grazed the woman’s leg, requiring minor medical attention. Officers at the scene recovered the shell casing.
Three days later, on February 1, 2017, an RPD officer was conducting a patrol in the South Park Community in Raleigh. At around 2:00 a.m., he noticed a large number of individuals loitering in an area known for gang and drug activity. As the officer approached, one man, later identified as DIBOH, walked away into an apartment complex, which had placed multiple complaints to the Raleigh Police Department regarding trespassers. The officer approached to question DIBOH. As he did, DIBOH pushed the officer in the chest and fled on foot. During a brief chase, prior to being apprehended, DIBOH tossed aside a loaded .380 caliber handgun. Law enforcement subsequently test fired the firearm to analyze its shell casings, finding them to match the shell casing from the January 29, 2017, shooting incident on Bragg Street.
This case was prosecuted under the Project Safe Neighborhoods (PSN) strategy. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
That effort has been implemented through 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.
The investigation of this case was conducted by the Raleigh Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorneys Jake D. Pugh and Daniel Smith represented the government.
Erie Man Sentenced After Conviction of Human Trafficking-Related OffensesRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that on February 1, 2018, SAMUEL DEWAYNE DOOLITTLE, 33, of Erie, Pennsylvania, was sentenced by United States District Judge Louise W. Flanagan for interstate transportation for prostitution and use of the internet to promote an unlawful business enterprise, namely, prostitution. Judge Flanagan sentenced DOOLITTLE to 135 months’ imprisonment followed by 5 years of supervised release. Judge Flanagan also ordered DOOLITTLE to pay $52,900 in restitution to the victims.
DOOLITTLE was charged in a seven-count indictment on September 8, 2017, and pleaded guilty to two counts on October 17, 2018.
From early April until June 5, 2016, DOOLITTE prostituted two victims and other women throughout the eastern United States. DOOLITTLE enticed the victims by false promises of financial reward, then took virtually all the money they earned and controlled them through violence, emotional abuse, and manipulation. Among other tactics, DOOLITTLE would not let victims eat or sleep without his permission, forced them to meet financial quotas, and threatened them if they disobeyed him. Ultimately one victim fled and contacted law enforcement while being prostituted in Fayetteville, North Carolina, and DOOLITTLE was arrested.
Mr. Higdon stated: “We are very grateful for the sentence handed down by the Court on this matter. The trafficking of human beings - and make no mistake, that is exactly what this was - is one of the most outrageous and shocking crimes we prosecute. The women that this defendant trafficked were terrorized and victimized day after day after day as he manipulated them through violence, emotional abuse and by depriving them of any independent means of support. And the eleven year sentence imposed by the Court reflects the awful nature of this crime. Sadly, there are many of these cases and we are committed to aggressive investigation and prosecution wherever we find them.”
The investigation of this case was conducted by the Fayetteville Police Department and the Federal Bureau of Investigation.
Armed Drug Trafficker from New Hanover County Receives More Than 11 Years in PrisonRead the Press Release
RALEIGH – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced TONY MCNEIL, 28, of New Hanover County to 135 months imprisonment, followed by 5 years of supervised release.
On October 18, 2018, MCNEIL pled guilty to conspiracy to possess with the intent to distribute and distribute 280 grams or more of cocaine base (crack) and a quantity of cocaine and distribution of 28 grams or more of cocaine base (crack).
On April 21, 2015, the Wilmington Police and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) received information that MCNEIL had just completed a drug deal in Pender County. Law enforcement stopped MCNEIL on his way to his residence in New Hanover County and searched his car and found a loaded handgun and more than $6,000. During the course of the investigation law enforcement determined that MCNEIL had just sold 2 ounces of cocaine.
Between April 23 and May 12, 2015, law enforcement made four controlled purchases of more than 300 grams of crack cocaine from MCNEIL. The first three deals were in Sampson County and the final sale was at his residence in New Hanover County. According to law enforcement, MCNEIL was responsible for distributing more than 1.5 kilograms of cocaine and 300 grams of crack cocaine from April to May 2015.
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.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives, Wilmington Police Department, and the New Hanover County Sheriff’s Office. Assistant United States Attorney Timothy Severo prosecuted the case on behalf of the government.
Wilson Man Sentenced for Drug Possession After Federal Jury ConvictionRead the Press Release
NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that today in federal court, United States District Judge Louise W. Flanagan sentenced BONDURANT AKEEM RUFFIN, 34, of Wilson, NC, to 69 months imprisonment, followed by 4 years supervised release. On August 15, 2018, following a three day jury trial before United States District Judge Louise W. Flanagan, a jury found RUFFIN guilty of possession with the intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base (crack).
According to the investigation, on November 24, 2016, the Wilson Police Department began investigating a vehicle break-in. They utilized a canine to conduct a tracking of the vehicle break-in suspect and encountered RUFFIN near a handicap ramp at a home. Close to RUFFIN, underneath the handicap ramp, was a bag that was later determined to contain 879 grams of powder cocaine and 74 grams of cocaine base (crack). This bag also contained a digital scale, a spoon and packaging materials. At the time of his arrest, RUFFIN possessed over $2,000 in U.S. currency.
Investigation of this case was conducted by the Wilson Police Department. Assistant United States Attorney Dena King prosecuted the case for the government.
Federal Jury Convicts Jacksonville Man for Crack Cocaine ConspiracyRead the Press Release
GREENVILLE – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that yesterday in Federal court, ANTHONY DEPREE SMITH, a 44-year-old resident of Jacksonville, was convicted following a two-day trial before Senior United States District Judge Malcolm J. Howard. The jury found SMITH guilty of Conspiracy to Possess with the Intent to Distribute Two Hundred Eighty (280) Grams or More of Cocaine Base (Crack). Sentencing is scheduled for the May 7, 2019 term of court in Greenville. SMITH faces at least ten years’ and up to life imprisonment.
The evidence at trial showed that SMITH had operated a long-standing crack cocaine organization in the city of Jacksonville, North Carolina, supplying multiple people with crack cocaine for resale on the street. Members of the Jacksonville Police Department conducted over a dozen controlled purchases of crack cocaine from members of SMITH’s organization and ultimately secured their cooperation against their supplier, SMITH. At trial, the evidence included a financial investigation, showing that SMITH had deposited over $118,000 in cash into a bank account that could not be accounted for from other, legitimate sources.
Mr. Higdon commented: “The prosecution of Anthony Smith, and others like him, highlights our focus as we seek to take our communities back from drug traffickers and violent criminals. Smith controlled a significant portion of the illegal drug trade which plagued Jacksonville for many years. His conviction is an important step in helping law enforcement and the people of Jacksonville to eliminate this problem.”
The case was investigated by the Jacksonville Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the United States Marshals Service. Laura S. Howard prosecuted the case on behalf of the United States.