Eastern District of North Carolina
Press releases recorded for this federal judicial district.
Henderson Man Sentenced for Two Counts of Possession of A Firearm by A FelonRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court, United States District Judge Louise W. Flanagan sentenced ISMIL GRAY JEFFERS, 23, of Henderson, NC to 140 months of imprisonment followed by 3 years of supervised release.
JEFFERS pled guilty on November 15, 2016 to being a Felon in Possession of a Firearm.
On September 22, 2015, the Vance County Sheriff’s Office responded to a disturbance complaint. Upon arriving at the scene, officers found JEFFERS in the bathroom of Auto Connection Used Auto Sales and subsequently conducted a search of his vehicle where a firearm and controlled substances were found. On October 19, 2015, members of the Henderson Police Department conducted a checkpoint traffic stop in which JEFFERS was a passenger in a vehicle. The vehicle pulled away from the checkpoint causing an officer to pursue. The vehicle stopped a short distance later and JEFFERS, a convicted felon, was observed throwing a handgun into a grassy area.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The criminal investigation of this case was conducted by the Henderson Police Department Police Department, the Vance County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the North Carolina State Crime Lab. Assistant United States Attorney S. Katherine Burnette is handling the case on behalf of the government.
Six Aliens Indicted on Immigration, Firearm, and Fraud ViolationsRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging RAYMUNDO BARRIOS-JIMENEZ, age 35, of Mexico, JAIME CARBAJAL-SANCHEZ, age 36, of Mexico, JESUS CERVANTEZ-RUIZ, age 47, of Guatemala, OMAR VASQUEZ-ROMAN, age 37, of Mexico with Illegal Reentry of a Deported Alien. Further, a federal grand jury in Raleigh has returned indictments charging TAMER AHMED QAID SAID RABEH, age 36, of Egypt, with Illegal and Unlawful Alien in Possession of a Firearm, and MAXIMO ORLANDO RODRIGUEZ, age 53, of the Dominican Republic, with Passport Fraud, False Representation of a Social Security Account Number, and Aggravated Identity Theft.
If convicted of Illegal Reentry of a Deported Alien, BARRIOS-JIMENEZ, and CARBAJAL-SANCHEZ would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
VASQUEZ-ROMAN is alleged to have been previously deported subsequent to two felony convictions (both for illegal reentry of a deported alien). Therefore, if convicted, he faces a maximum imprisonment term of ten years.
CERVANTEZ-RUIZ is alleged to have been previously deported subsequent to an aggravated felony conviction (assault with a deadly weapon inflicting serious injury). Therefore, if convicted, he faces a maximum imprisonment term of twenty years.
If convicted of Illegal and Unlawful Alien in Possession of a Firearm, RABEH faces a maximum imprisonment term of ten years. Additionally, if convicted of Passport Fraud, False Representation of a Social Security Account Number and Aggravated Identity Theft, RODRIGUEZ faces a mandatory term of imprisonment of two years consecutive to a ten-year 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 the Department of Homeland Security, Department of State, North Carolina Division of Motor Vehicles, and Pender County Sheriff’s Office.
Six Robeson County Men Face Narcotics ChargesRead the Press Release
WILMINGTON – The United States Attorney’s Office for the Eastern District of North Carolina announces that six (6) Robeson County men were arrested today in a coordinated law enforcement operation for allegedly engaging in selling narcotics in the Robeson County area.
The following individuals were charged by way of Criminal Complaint:
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Mitchell Locklear, 54 of Maxton, NC
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Torrey Locklear, 37 of Maxton, NC
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Christopher Locklear, 34 of Maxton, NC
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Timmy Lloyd Hunt, 42 of Maxton, NC
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Kevin Clark, 30 of Rowland, NC
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Kevin Dwayne Revels, 35 of Maxton, NC
Mitchell Locklear, Christopher Locklear, and Timmy Lloyd Hunt were charged with conspiracy to distribute and possess with the intent to distribute marijuana and cocaine. Torrey Locklear and Kevin Clark were charged with conspiracy to distribute and possess with the intent to distribute marijuana, cocaine, and oxycodone. Kevin Revels was charged with conspiracy to distribute and possess with the intent to distribute marijuana and cocaine and with possession of firearms by a felon.
In the process of serving the Criminal Complaints, sixty-eight (68) firearms were seized.
The case is being investigated by the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Internal Revenue Service (IRS), and Immigration and Custom Enforcement’s Homeland Security Investigations (HSI). Additional assistance was provided by the Robeson County Sheriff’s Office, the North Carolina State Highway Patrol, the North Carolina State Bureau of Investigation, the North Carolina National Guard, and the United States Department of Agriculture. Assistant United States Attorney Lawrence J. Cameron is prosecuting the case for the government.
The charges and allegations contained in the Criminal Complaints are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.
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RGB, INC. Pleads Guilty and is Sentenced for Gambling ViolationsRead the Press Release
RALEIGH – United States Attorney John Stuart Bruce announced that today in federal court, Chief United States District Judge James C. Dever III sentenced RGB, Inc., a business known as Godwin Music in Selma, NC, and Raleigh Amusements in Garner, NC to 4 years probation. RGB pled guilty to Conducting an Illegal Gambling Business and pursuant to the plea agreement, RGB paid $2,334,500 in forfeiture and a $150,000 fine. RGB pled guilty this morning and was sentenced shortly thereafter.
Pursuant to the plea agreement, the Government moved to dismiss the related gambling charges against David Ricky Godwin and David Ricky Godwin, Jr., and the Court dismissed those charges.
RGB was named in a Second Superseding Indictment filed on August 11, 2015. It was originally indicted on June 9, 2015. The charges related to RGB’s operation of a gambling business involving video sweepstakes machines that included games such as video poker, video keno, video lotto, and eight liner. RGB placed these machines in convenience stores, restaurants, bars, and other businesses in Eastern North Carolina.
Investigation of this case was conducted by Alcohol Law Enforcement, the Internal Revenue Service Criminal Investigation, and the FBI. Assistant United States Attorney David A. Bragdon represented the government.
Former NC Superior Court Judge Arnold O. Jones, II Pleads Guilty to Felony Payment of Gratuity to a Public OfficialRead the Press Release
RALEIGH – United States Attorney John Stuart Bruce announced that today in federal court before United States District Judge Terrence W. Boyle, former North Carolina Superior Court Judge ARNOLD OGDEN JONES, II pled guilty to Promising and Paying Gratuities to a Public Official, in violation of Title 18, United States Code, Section 201(c)(1)(A).
During the hearing on the defendant’s guilty plea, the Government summarized the evidence supporting the defendant’s guilty plea. The evidence established that between October 10, 2015 and November 3, 2015 JONES gave, offered, and promised cases of beer and $100 to a Federal Bureau of Investigation Task Force Officer in contemplation of the Task Force Officer’s act of compelling Verizon to produce JONES’s wife’s text messages in order to disclose those messages to JONES, even though JONES was not permitted to receive them by law.
The evidence showed that, as a judge, JONES was familiar with the processes and procedures law enforcement must undertake to obtain private text message content, including the need for the FBI to have an ongoing investigation and a legitimate law enforcement need for such text content. The evidence established that JONES desired the text messages to investigate his suspicions that his wife was having an affair. Multiple recorded conversations established JONES’s desire to conceal the FBI Task Force Officer’s involvement in obtaining the texts. JONES agreed to destroy evidence of the crime, including a disk that purported to contain the text messages and text messages coordinating the exchange of cash and a disk. The evidence also included a video of JONES exchanging the cash and disk on the steps of the Wayne County Courthouse in his judicial robe. No text messages were obtained or delivered to JONES.
At sentencing, on the charge of Promise and Payment of Gratuities to a Public Official, the defendant faces not more than 2 years in prison and up to $250,000 in fines.
The Federal Bureau of Investigation conducted the investigation of this case. Assistant United States Attorneys William M. Gilmore and Adam F. Hulbig prosecuted the case on behalf of the government.
Four More Aliens Indicted on Immigration ViolationsRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging ANGEL BRITO-ALVAREZ, age 32, of Mexico, ELEAZAR GUTIERREZ-TORRES, age 28, of Mexico, OSCAR GEOVANI OLIVERA-HERNANDEZ, age 23, of Honduras, and GILBERTO ORDUNO-BUSTAMANTE, age 38, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, GUTIERREZ-TORRES, and OLIVERA-HERNANDEZ would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
ORDUNO-BUSTAMANTE is alleged to have been previously deported subsequent to a felony conviction (possession of a controlled substance). Therefore, if convicted, he faces a maximum imprisonment term of ten years.
BRITO-ALVAREZ is alleged to have been previously deported subsequent to an aggravated felony conviction (conspiracy to traffic in methamphetamine). Therefore, if convicted, he faces a maximum imprisonment term of twenty years.
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 the Department of Homeland Security, specifically, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Former Raleigh Resident Sentenced for Filing Fraudulent Federal Income Tax ReturnsRead the Press Release
NEW BERN – The United States Attorney’s Office announced that today in Federal court, Senior United States District Judge Malcolm J. Howard sentenced NEVADA T. BEARD, 45, of Charlotte, North Carolina to 24 months imprisonment, followed by 3 years of supervised release.
BEARD was named in a Criminal Information filed on October 4, 2016 which charged him with making and presenting a false, fictitious and fraudulent claim for Federal income tax refund. On November 7, 2016, BEARD pled guilty to the charge.
Michael C. Daniels, Acting Special Agent in Charge, IRS-Criminal Investigation, Charlotte Field Office, stated, "As we are in the midst of the tax filing season, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced today. Today’s sentencing of Mr. Beard again emphasizes that the Internal Revenue Service and U.S. Attorney’s Office will continue their aggressive pursuit of those who attempt to defraud America’s tax system.”
According to the IRS investigation, between approximately 2013 and 2015, BEARD operated a purported tax return preparation business, “Beard Tax Solutions,” out of his then-residence in Raleigh. BEARD generated customers through word-of-mouth advertisement, referrals, and direct solicitations. After collecting a customer’s personal information, BEARD used Turbo Tax online to prepare and electronically file with the IRS a Federal income tax return that incorporated false W-2 wages, household help income, and/or other false items for the purpose of artificially inflating the tax refund amount. BEARD would not identify himself as the preparer on the face of the return, as required. The IRS investigation identified over 100 false returns attributable to BEARD. These returns generated nearly $300,000 in tax losses. Throughout the 2013 tax filing season, BEARD was on Federal supervised release for a prior firearms conviction in the Eastern District of North Carolina.
Investigation of this case was conducted by IRS-Criminal Investigation. Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government.
Dunn Man Sentenced for Possession of a Firearm by a FelonRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, United States District Judge Terrence W. Boyle sentenced CLARENCE JUNIOR YORK, 34, of Dunn, NC to 48 months of imprisonment followed by 3 years of supervised release.
YORK pled guilty on October 31, 2016 to being a Felon in Possession of a Firearm.
On April 21, 2016, the Dunn Police Department responded to a disturbance complaint. Upon arriving at the scene, officers found YORK lying on the ground partially in the roadway. The defendant appeared to be intoxicated when questioned by law enforcement. During questioning, officers saw the handle of a handgun protruding from YORK’s back pocket. The loaded firearm was recovered on the scene.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The criminal investigation of this case was conducted by the Dunn Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), and the North Carolina State Crime Lab. Assistant United States Attorney S. Katherine Burnette is handling the case on behalf of the government.
Two More Commercial Fisherman Plead Guilty to Ilegally Harvesting and Selling Atlantic Striped BassRead the Press Release
WILMINGTON – The United States Attorney’s Office announced that today in federal court, DAVID SAUNDERS, JR., 46, of Poplar Branch, North Carolina, and MICHAEL POTTER,59, of Bayboro, North Carolina pled guilty to federal charges regarding the illegal harvest and sale of Atlantic striped bass from federal waters off the coast of North Carolina.
According to the Indictments and information in the public records, in February 2010, a Special Agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic striped bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on the harvesting of Atlantic striped bass in the United States’ Exclusive Economic Zone (“EEZ”) which spans between 3 miles and 200 miles seaward of the U.S. Atlantic coastline.
Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, (the fishing vessel Lady Samaira), and boarded the vessel. At the time of the boarding, the Lady Samaira was captained by Defendant Ellis Leon Gibbs, Jr.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. Based on its review, NOAA determined that in seven separate fishing trips between January 27, 2009, and February 9, 2010, SAUNDERS, then Captain of the Bridgot Denise, a commercial trawler, harvested approximately 14,579 pounds of Atlantic striped bass from the EEZ, which he sold to a fish dealer in Wanchese, North Carolina. The estimated fair market retail value of the 14,579 pounds of illegally harvested fish exceeds $116,000.
To conceal the illegal harvests, SAUNDERS submitted false statements under penalty of perjury to NOAA, claiming he caught the fish in state waters on all but one of his fishing trips. On five of those seven federal vessel trip reports, SAUNDERS claimed he harvested the fish in the Albemarle Sound – internal state waters where trawling for striped bass is prohibited by state law.
Based on this same review, NOAA also determined that POTTER, then Captain of the Jane Carolyn, a commercial trawler, was fishing for Atlantic striped bass 9 nautical miles from the coast of North Carolina on the same day that the Lady Samaira was boarded. NOAA further determined that between February 8, 2010, and February 13, 2010, POTTER harvested approximately 4,305 pounds of Atlantic striped bass from the EEZ, which he sold to fish dealers in Wanchese and Lowland, North Carolina. In an interview in July 2014, POTTER admitted that he knew it was illegal to harvest Atlantic striped bass from the EEZ, but falsely denied ever doing so. The estimated fair market retail value of the 4,305 pounds of illegally harvested fish exceeds $34,000.
During the winter 2010 Atlantic striped bass ocean trawl season, it is estimated that over 90,000 pounds of North Carolina’s 160,000 pound ocean trawl quota were taken illegally from the EEZ.
Six other commercial fisherman previously entered guilty pleas for conduct uncovered by the same investigation. United States v. Dewey W. Willis, Jr., No. 2:15-CR-3-BO, United States v. James Ralph Craddock, No. 2:15-CR-7-BO, United States v. Joseph Howard Williams, No. 4:15-CR-2-BO; United States v. Ellis Leon Gibbs, Jr., No. 4:14-CR-9-BO, United States v. Dwayne J. Hopkins, 2:15-CR-8-BO, and United States v. John Roberts¸ No. 4:15-CR-3-BO.
“These prosecutions make clear that efforts to circumvent laws regulating commercial fishing -- which are implemented to sustain the species for the benefit of future generations -- will be enforced vigorously,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “We are pleased to partner with our colleagues at DOJ’s Environmental Crimes Section in these important cases.”
Manny Antonaras, Acting Assistant Director for the NOAA’s Southeast Office of Law Enforcement stated, "NOAA's Office of Law Enforcement is committed to ensuring a level playing field for law abiding fishermen and coastal communities that rely upon our nation’s living marine resources. When people cheat the system, it hurts those who follow the rules the most."
A sentencing hearing has been scheduled for the Court’s June 5, 2017, term of court. SAUNDERS and POTTER each face a maximum sentence of 5 years imprisonment and/or a $250,000 fine.
The investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol, and the Virginia Marine Police. This case is being prosecuted by Senior Litigation Counsel Banumathi Rangarajan of the United States Attorney’s Office for the Eastern District of North Carolina, and Trial Attorneys Shennie Patel, Shane Waller, and Joel LaBissonniere of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section.
Co-Defendants in Kidnapping Case of Wake Forest Man Sentenced to 286 Years of ImprisonmentRead the Press Release
- RALEIGH The United States Attorney’s Office announced that today, eight co-defendants in the kidnapping case of a Wake Forest man were sentenced by Chief United States District Judge James C. Dever, III, for their role in the conspiracy to seize, kidnap, and abduct Frank Janssen from Wake Forest, North Carolina and transport him to Atlanta, Georgia.
The following sentences were imposed:
JAKYM TIBBS, 23 of Atlanta, GA; 52 years imprisonment
TIANNA MAYNARD 33 of Warner Robins, GA; 50 years in conjunction with a life sentence imposed by the State of Georgia for a homicide conviction.
QUANTAVIOUS THOMPSON, 21 of Atlanta, GA; 42 years imprisonment
CLIFTON ROBERTS, 32 of Atlanta, GA; 37 years imprisonment in conjunction with a life sentence imposed by the State of Georgia for a homicide conviction.
PATRICIA ANN KRAMER,30 of Austell, GA; 30 years imprisonment
MICHAEL GOODEN, 24 of Atlanta, GA; 30 years imprisonment in conjunction with a life sentence imposed by the State of Georgia for a homicide conviction.
JENNA MARTIN, 23 of Georgia; 25 years imprisonment
JEVANTE PRICE, 23 of Marietta, GA; 20 years imprisonment
United Blood Nation (UBN) 1-8-Trey Gang Leader KELVIN MELTON was found guilty in a jury trial of Conspiracy to Commit Kidnapping, Attempted Kidnapping and Aiding and Abetting, Kidnapping and Aiding and Abetting, and Using, Carrying, and Brandishing a Firearm During and in Relation to, and Possessing a Firearm in Furtherance of, a Crime of Violence, that being Kidnapping and Aiding and Abetting on June 21, 2016. On November 10, 2016 MELTON was sentenced to life imprisonment in a Federal Super Max Facility.
Frank Janssen was taken from his home against his will on April 5, 2014. One Eight Trey Blood member MELTON, used a cell phone that he illegally possessed while serving a life sentence in North Carolina’s Polk Correctional Institution in Butner, North Carolina, to transmit instructions to co-conspirators in the plot who then sent threats to Janssen’s wife. Specifically, MELTON gave instructions on how to kill Mr. Janssen, dispose of his body and sanitize the crime scene.
Through a coordinated effort involving many federal, state, and local law enforcement agencies, the FBI’s Hostage Rescue Team rescued Mr. Janssen at 11:55 pm on April 9, 2014, at a residence in Southeast Atlanta.
United States Attorney John Stuart Bruce stated, “The federal prosecution of Kelvin Melton’s accomplices is now nearly complete, and justice has been served. The credit for this successful prosecution goes to the hard-working prosecutors in our office, the dedicated agents of the FBI, and scores of officers from state and local agencies who worked together to rescue the victim and solve the case.”
Co-defendants Dewayne Seymore and Shameika Goodall are set for sentencing later this Spring.
The case was investigated by the FBI Charlotte, FBI Atlanta, the Wake Forest Police Department, the North Carolina State Bureau of Investigation with assistance by the Durham County Sheriff’s Office, Raleigh Police Department, Durham Police Department, North Carolina Alcohol Law Enforcement, Garner Police Department, North Carolina Highway Patrol, RDU Police, City County Bureau of Investigation, the Cobb County Police Department, Alpharetta Police Department, Atlanta Police Department, and the Georgia Bureau of Investigation. The United States Attorney’s Office for the Eastern District of North Carolina is handling the prosecution of these cases.
Second Manufacturer of Defective North Carolina Bridge Parts Sentenced to 35 Months in Federal PrisonRead the Press Release
RALEIGH -United States Attorney John Stuart Bruce announced that today in federal court before United States District Judge Terrence W. Boyle, SANTIAGO DE LA TORRE, 45, of Cicero, Illinois, was sentenced to serve 35 months in federal prison ori harges of Conspiracy to Make False Statements Concerning Highway Projects, and Perjury. The defendant was also ordered to serve a 3-year term of supervised release and to make restitution.
In October of 2011 a federal highway contractor discovered a defect in a grouping of elastomeric bridge bearings that had been shipped for use on bridges in North Carolina. An elastomeric bridge bearing is a slab of rubber that is reinforced with multiple layers of steel and placed underneath bridges to absorb shock. The bearings were defective because the steel plates were exposed, subjecting them to the elements and creating the potential for deterioration. The North Carolina Department of Transportation began an investigation and found systematic problems with the bearings that had been shipped, and in some instances installed, on bridge projects throughout the state. In total, 1,270 of the shipped bearings were found to be nonconforming and defective. The bearings were shipped in connection with 25 different highway projects in North Carolina between May of 2009 and October of 2011. Upon further investigation , the Department of Transportation found that many of the bridge bearings had come from a company named Delgado Elastomeric Bearings Corporation, located in the Chicago
area.The United States Department of Transportation conducted a criminal investigation into the creation and shipment of the defective bridge bearings. It was discovered that the North Carolina application to supply the bridge bearings to local contractors had been forged. The name of a teenager with no knowledge of how to manufactur e bridge bearings was fraudulently used on the application. This teenager was also held out by Delgado Elastomeric Bearings Corporation as the vice president of the company, when in fact, the teenager had no idea of this title. This same name and title had also been used on all certificates sent to North Carolina highway contractors certifying the conformity of the bearings with applicable state and federal regulations.
Ultimately,the investigation revealed that the defendant, SANTIAGO DE LA TORRE, and his brother Joel De La Torre, had forged the name of the teenager on the documents described above. Inspection of the Chicago facility used to manufacture the bridge bearings revealed that the facility did not contain the required testing devices and machinery which would have revealed the defects in the bridge bearings.
SANTIAGO DE LA TORRE committed perjury in the grand jury when he was asked if he had ever seen testing certification documents. In fact, conversations recorded by the FBI showed that the defendant had seen the certifications and was knowledgeable about the use of the teenager's name on the documents. Prior to the defendant's arrest, the defendant also encouraged his brother to flee to Mexico rather than face prosecution.
Although not presently incurred, costs associated with the replacement of the bearings are expected over time to exceed $5 Million due to the difficulty in removing the bearings from beneath existing structures, engineering costs, and traffic control. Federal and state agencies have reported that there is no immediate threat to safety due to the faulty bearings, which will be monitored and replaced over time.
Joel De La Torre was previously sentenced on April 21, 2016, and ordered to serve 35 months in federal prison for his role in the scheme.
The investigation of this case was conducted by the United States Department of Transportation, Office of the Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore represented the United States.
Raleigh Man Convicted in Fraudulent Credit Card Scam at Walmart and Sam’s ClubRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, PA AMBROSE MENDY, 31, of Raleigh, was convicted following a two-day trial before United States District Judge Terrence W. Boyle. The jury found the defendant guilty of Conspiracy to Commit Access Device Fraud, Conspiracy to Commit Money Laundering, and two counts of Access Device Fraud.
The defendant was charged, along with nine codefendants, in an indictment alleging a scheme to manufacture and use counterfeit credit cards. The indictment alleged that the defendant and others would acquire stolen credit card numbers online and encode them onto plastic cards containing magnetic strips. The indictment further alleged that the conspirators would use the fraudulent cards at Walmart stores located around the state to purchase more than $1 Million worth of Walmart gift cards. The indictment alleged that the conspirators then took the genuine gift cards to Sam’s Club stores and used them to purchase more than $1 Million in cigarettes and stored-value Visa cards, which could then be sold off for cash.
Prior to trial, various codefendants pleaded guilty to Conspiracy to Commit Money Laundering and Aggravated Identity Theft. The defendant proceeded to trial on the charge of Conspiracy to Commit Access Device Fraud, Conspiracy to Commit Money Laundering, and two counts of Access Device Fraud. After a two-day trial, the jury found the defendant guilty of each charge. Three remaining codefendants are at large. These defendants are MALAMIN OUSMAN SONKO, SALIFU JALLOW, or ABDOULAIE FRANCIS LOWE NICOLAS.
The investigation of this case was conducted by agents of the United States Secret Service, with the assistance of the Defense Criminal Investigative Service and numerous local law enforcement agencies. At trial, the United States was represented by Assistant United States Attorneys William M. Gilmore and Melissa Kessler of the Economic Crimes Division.
If you know of the whereabouts of codefendants MALAMIN OUSMAN SONKO, SALIFU JALLOW, or ABDOULAIE FRANCIS LOWE NICOLAS, please contact the United States Secret Service at (919) 855-1052.
Four Aliens Indicted on Immigration ViolationsRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging JOSE MANUEL CARDONA-RODRIGUEZ, age 31, of Mexico, LUIS MIGUEL CURIEL-ACUNA, age 34, of Mexico, HOMERO SIERRA-VILLA, age 47, of Mexico, and IGNACIO VENTURA-MENDOZA, age 33, of Mexico, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, CARDONA-RODRIGUEZ, SIERRA-VILLA, and VENTURA-MENDOZA would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
CURIEL-ACUNA is alleged to have been previously deported subsequent to an aggravated felony conviction (conspiracy to deliver cocaine). Therefore, if convicted, he faces a maximum imprisonment term of twenty years.
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 the Department of Homeland Security, specifically, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Greene County Drug Trafficker Sentenced to over 17 Years for Cocaine and Marijuana ConspiracyRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, United States District Judge Louise W. Flanagan sentenced AUGUSTO ESPINDOLA-PINEDA, 38, from Snow Hill, N.C., to 210 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine and 500 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. AUGUSTO ESPINDOLA-PINEDA pled guilty to these charges on May 11, 2016. A co-conspirator, HUBERTO ESPINDOLA-SOTO, was sentenced to 146 months in prison by Judge Flanagan on December 6, 2016. Both AUGUSTO ESPINDOLA-PINEDA and HUBERTO ESPINDOLA-SOTO are from Mexico and reentered the United States illegally.
On November 12, 2014, after a lengthy investigation, DEA Task Force Officers arrested co-conspirator HUBERTO ESPIDOLA-SOTO after he left a mobile home maintained by AUGUSTO ESPINDOLA-PINEDA in La Grange, N.C. During a search of the mobile home, officers found approximately 3 kilograms of crystal methamphetamine, 5 kilograms of cocaine, two assault rifles and a .22 caliber rifle. Officers arrested AUGUSTO ESPINDOLA-PINEDA on the same day. The investigation revealed that the conspiracy involved 335 kilograms of cocaine, 3 kilograms of crystal methamphetamine and 500 pounds of marijuana.
This case was part of OCDETF Operation “Smokin’ Aces”. Operation “Smokin’ Aces” was designed to attack the infrastructure of Mexican Drug Trafficking Organizations operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These organizations are responsible for the importation of large quantities of cocaine, marijuana, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The case was investigated by the Drug Enforcement Administration, the Lenoir County Sheriff’s Office, the Greenville Police Department, the Johnston County Sheriff’s Office, the Wayne County Sheriff’s Office, the Wilson Police Department, the Rocky Mount Police Department, the Nash County Sheriff’s Office, the Goldsboro Police Department, the Raleigh Police Department, and the Person County Sheriff’s Office. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office, pursuant to funding provided by the North Carolina Conference of District Attorneys, to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
Cary Man Charged with Transmitting a Threat in Interstate Commerce to Injure Another PersonRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that a Criminal Complaint was filed against GARRETT GRIMSLEY, age 27, of Cary, charging him with Transmitting a Threat in Interstate Commerce to Injure the Person of Another. GRIMSLEY appeared before U.S. Magistrate Judge Robert T. Numbers, II today for his initial appearance.
According to the affidavit filed with the Criminal Complaint, on February 19, 2017, GRIMSLEY posted an online public message stating “don’t go to Cary tomorrow.” In a subsequent private message conversation, GRIMSLEY told a cooperating witness: “For too long the kuffar [non-Muslims] have spit in our faces and trampled our rights. This cannot continue. I cannot speak of anything. Say your dua [prayers], sleep, and watch the news tomorrow. It will only be the beginning . . .”
According to the affidavit, law enforcement officers identified GRIMSLEY’s apartment in Cary as the location from which the messages were sent. A search warrant executed at the apartment resulted in the recovery of an AK-47 assault rifle, four 30-round magazines, and approximately 340 rounds of 7.62 millimeter ammunition.
If convicted, the maximum penalty for this offense is 5 years imprisonment and a $250,000 fine.
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.
The case is being investigated by the Federal Bureau of Investigation, the Cary Police Department, and the North Carolina State Bureau of Investigation.
Ten Alleged Members and Associates of Bloods Gang Indicted for Federal Racketeering and Other Related OffensesRead the Press Release
Ten alleged members of the Black Mob Gangstas/Donald Gee Family (BMG/DGF) Raleigh-area Bloods street gang, including its leaders, have been indicted in Raleigh, North Carolina, for conspiring to participate in a racketeering enterprise and related offenses.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina, Special Agent in Charge John A. Strong of the FBI’s North Carolina Division and Chief Cassandra Deck-Brown of the Raleigh Police Department made the announcement.
The 11-count superseding indictment was returned by a federal grand jury on Jan. 20, and unsealed today in U.S. District Court for the Eastern District of North Carolina. The indictment charges the defendants with racketeering conspiracy, murder in aid of racketeering, murder with a firearm, drug trafficking conspiracy, witness tampering, obstruction of justice and related offenses. The defendants range from senior leadership to associates of the BMG/DGF Bloods:
- Demetrice Regus Devine aka Respect, 34;
- Dontaous Demond Devine aka Scooch and Boochie, 28;
- Demetrius Deshaun Toney aka Meat, 24;
- Brandon Jowan Mangum aka B-Easy, 28;
- Jamario Keon Jones aka Spect Junior and Skeeno, 24;
- Cleveland McNair aka Blee, 33;
- Christopher Darnell Evans aka Racks and Snacks, 27;
- Brenda Joyce Brown aka Lady Banga, 32;
- Katherine Victoria Gast aka Kat Snacks, 25; and
- Shaiona Marie Smith aka Slyfox, 22.
All of the defendants charged in the superseding indictment are already in custody.
According to the superseding indictment, the BMG/DGF Bloods is a violent street gang with members operating in Raleigh, including Haywood Street area, since the early 2000s. The gang is organized according to a detailed hierarchical structure. Senior leadership regularly conducted formal meetings and collected dues from the rank and file members, assaulting members who failed to pay or follow orders. The alleged members and associates of the BMG/DGF are charged with a wide range of crimes used to further their racketeering scheme, including murder, attempted murder, assault with dangerous weapons, drug trafficking, extortion, threats of violence and distribution of narcotics.
The superseding indictment charges gang leaders Demetrice Devine and Dontaous Devine with conspiracy to participate in racketeering activities of the BMG/DGF Bloods, among other charges. The indictment also charges two other alleged gang members, McNair and Evans, with conspiracy to participate in the gang’s racketeering activities.
According to the superseding indictment, BMG/DGF members and associates were connected to two separate murders. In May 2009, Dontaous Devine, Toney and Mangum allegedly shot and killed a rival gang member for refusing to pay BMG/DGF’s gang dues. The indictment also alleges that in November 2008, Jones and another gang member shot and killed a rival gang member under orders from a high ranking BMG/DGF member.
The FBI, Raleigh Police Department and the North Carolina Department of Public Safety investigated the case. Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section (OCGS) and Assistant U.S. Attorneys Dena King and Scott Lemmon of the Eastern District of North Carolina are prosecuting the case.
Devine et al. Superseding IndictmentTen Alleged Members and Associates of Bloods Gang Indicted for Federal Racketeering and Other Related OffensesRead the Press Release
RALEIGH – The United States Attorney’s Office announced today that ten alleged members of the Black Mob Gangstas/Donald Gee Family (BMG/DGF) Raleigh-area Bloods street gang, including its leaders, have been indicted in Raleigh, for conspiring to participate in a racketeering enterprise and related offenses.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina, Special Agent in Charge John A. Strong of the FBI’s North Carolina Division and Chief Cassandra Deck-Brown of the Raleigh Police Department made the announcement.
The 11-count indictment was returned by a federal grand jury on January 20, 2017, and unsealed today in U.S. District Court for the Eastern District of North Carolina. The indictment charges the defendants with racketeering conspiracy, murder in aid of racketeering, murder with a firearm, drug trafficking conspiracy, witness tampering, obstruction of justice, and related offenses. The defendants range from senior leadership to associates of the BMG/DGF Bloods:
• Demetrice Regus Devine, aka Respect, 34;
• Dontaous Demond Devine, aka Scooch and Boochie, 28;
• Demetrius Deshaun Toney, aka Meat, 24;
• Brandon Jowan Mangum, aka B-Easy, 28;
• Jamario Keon Jones, aka Spect Junior and Skeeno, 24;
• Cleveland McNair, aka Blee, 33;
• Christopher Darnell Evans, aka Racks and Snacks, 27;
• Brenda Joyce Brown, aka Lady Banga, 32;
• Katherine Victoria Gast, aka Kat Snacks, 25; and
• Shaiona Marie Smith aka, Slyfox, 22.
The last individual was arrested and taken into custody today. All of the other defendants charged in the indictment are already in custody.
John Stuart Bruce, U.S. Attorney, stated: “This significant indictment is the result of a lot of hard work by the FBI, the Raleigh Police Department, and the N.C. Department of Public Safety, as well as the attorneys in our office and those in DOJ’s Criminal Division. Stopping illegal gang activity, especially violent crimes, is a top priority for our office.”
“These suspects are part of a ruthless street gang that uses fear, intimidation, and even murder to protect the interests of their criminal organization. They believed they were beyond the reach of justice, even tampering with witnesses. Together with our law enforcement partners, we have disrupted a dangerous criminal enterprise and will continue to hold those accountable who mistakenly believe they are above the law,” said John A. Strong, Special Agent in Charge of the FBI in North Carolina.
According to superseding indictment, the BMG/DGF Bloods is a violent street gang with members operating in Raleigh, including Haywood Street area, since the early 2000s. The gang is organized according to a detailed hierarchical structure. Senior leadership regularly conducted formal meetings and collected dues from the rank and file members, assaulting members who failed to pay or follow orders. The alleged members and associates of the BMG/DGF are charged with a wide range of crimes used to further their racketeering scheme, including murder, attempted murder, assault with dangerous weapons, drug trafficking, extortion, threats of violence and distribution of narcotics.
The superseding indictment charges gang leaders Demetrice Devine and Dontaous Devine with conspiracy to participate in racketeering activities of the BMG/DGF Bloods, among other charges. The indictment also charges two other alleged gang members, McNair and Evans, with conspiracy to participate in the gang’s racketeering activities.
According to the superseding indictment, BMG/DGF members and associates were connected to two separate murders. In May 2009, Dontaous Devine, Toney and Mangum allegedly shot and killed a rival gang member for refusing to pay BMG/DGF’s gang dues. The indictment also alleges that in November 2008, Jones and another gang member shot and killed a rival gang member under orders from a high ranking BMG/DGF member.
The FBI, Raleigh Police Department and the North Carolina Department of Public Safety investigated the case. Assistant U.S. Attorneys Dena King and Scott Lemmon of the Eastern District of North Carolina and Trial Attorney John C. Hanley of the Department of Justice’s Criminal Division’s Organized Crime and Gang Section and are prosecuting the case.
Garysburg Man Sentenced for Possession of a Firearm by a FelonRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court yesterday, United States District Judge Louise W. Flanagan sentenced KHAALID SHARIF FREDERICK, 36, of a Garysburg, NC to 80 months of imprisonment followed by 3 years of supervised release.
FREDERICK pled guilty on August 16, 2016 to being a Felon in Possession of a Firearm.
On November 24, 2015, the Roanoke Rapids Police Department
received a 911 call from FREDERICK’S mother requesting assistance indicating that her son was at her residence and out of control.
Four officers were dispatched to the scene. Upon arriving at the residence a standoff ensued. After several hours, FREDERICK exited the residence and surrendered. A search of the residence revealed the loaded .40 caliber pistol.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
The criminal investigation of this case was conducted by the Roanoke Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). Assistant United States Attorney S. Katherine Burnette is handling the case on behalf of the government.
Eight Aliens Indicted on Immigration ViolationsRead the Press Release
RALEIGH – John Stuart Bruce, United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging OSCAR ARMANDO ARIAS, age 42, of Honduras, JUAN ANTONIO HERNANDEZ-RAMIREZ, age 27, of Mexico, BERNARDINO PATLAN-GONZALEZ, age 35, of Mexico, OSMAN SAMIR ALVAREZ-GUITY, age 31, of Honduras, JESUS FELIX-REYES, age 36, of Mexico, JESUS ANTONIO MILLAN-RASCON, age 33, of Mexico, and JUAN GALLARDO-MEJIA, age 52, of Mexico, with Illegal Reentry of a Deported Alien.
Also, the same federal grand jury returned an indictment charging ALVARO VERA-DELGADILLO, age 34, of Mexico, with Possession of a Firearm by an Alien Illegally or Unlawfully in the United States.
If convicted of Illegal Reentry of a Deported Alien, HERNANDEZ-RAMIREZ, previously deported on two occasions, and PATLAN-GONZALEZ, previously deported on four occasions, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
ALVAREZ-GUITY, FELIX-REYES, and MILLAN-RASCON are alleged to have been previously deported on three, six, and seven occasions, respectively, and having been previously convicted of a felony (a prior illegal reentry after deportation). Also, ARIAS is alleged to have been previously deported after having been convicted of a felony (trafficking in cocaine). Therefore, if convicted, they face a maximum imprisonment term of ten years.
GALLARDO-MEJIA is alleged to have been previously deported twice after having been convicted of an aggravated felony (possession of marijuana for sale). Therefore, if convicted, he faces a maximum imprisonment term of twenty years.
If convicted of possession of a firearm by an alien illegally in the United States, VERA-DELGADILLO 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 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 the Department of Homeland Security, specifically, Immigration and Customs Enforcement, Enforcement and Removal Operations, and Homeland Security Investigations.
Another North Carolina Commercial Fishermen Pleads Guilty to Illegally Harvesting and Selling Atlantic Striped BassRead the Press Release
WILMINGTON – The United States Attorney’s Office announced that today in federal court, JOHN ROBERTS, 45, of Engelhard, pled guilty to federal charges regarding the illegal harvest and sale of Atlantic striped bass from federal waters off the coast of North Carolina during 2010.
According to the Indictments and information in the public records, in February 2010, a Special Agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic Striped Bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on the harvesting of Atlantic Striped Bass in the United States’ Exclusive Economic Zone (“EEZ”) which spans between 3 miles and 200 miles seaward of the U.S. Atlantic coastline.
Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, (the fishing vessel Lady Samaira) and boarded the vessel. At the time of the boarding, the Lady Samaira was captained by Defendant Ellis Leon Gibbs, Jr.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. Based on its review, NOAA determined that between January 20, 2010, and February 2, 2010, ROBERTS, then Captain of the Wonder Woman, a commercial trawler, harvested approximately 6,884 pounds of Atlantic Striped Bass from the EEZ, which he sold to a fish dealer in Engelhard, North Carolina. Additionally, on one of his fishing trips, ROBERTS exceeded the North Carolina catch limit for Atlantic Striped Bass, making multiple landings and filing multiple trip reports to make it appear that the fish had been caught during separate outings. The estimated fair market retail value of the 6,884 pounds of illegally harvested fish exceeds $55,000. Roberts also made false statements on his federal trip reports to conceal the true location of the harvest.
During the winter 2010 Atlantic striped bass ocean trawl season, it is estimated that over 90,000 pounds of North Carolina’s 160,000 ocean trawl quota were taken illegally from the EEZ.
Five other commercial fisherman previously entered guilty pleas for conduct uncovered by the same investigation. United States v. Dewey W. Willis, Jr., No. 2:15-CR-3-F, United States v. James Ralph Craddock, No. 2:15-CR-7-F, United States v. Joseph Howard Williams, No. 4:15-CR-2-F; United States v. Ellis Leon Gibbs, Jr., No. 4:14-CR-9-F, United States v. Dwayne J. Hopkins, 2:15-CR-8-F.
“These prosecutions make clear that efforts to circumvent laws regulating commercial fishing -- which are implemented to sustain the species for the benefit of future generations -- will be prosecuted vigorously,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “Our office was pleased to partner with DOJ’s Environment and Natural Resources Division, NOAA, and other law enforcement agencies on these important cases.”
A sentencing hearing has been scheduled for the Court’s May 8th term of court, 2017. ROBERTS faces a maximum sentence of five years in prison and a $250,000 fine.
The investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol, and the Virginia Marine Police. This case is being prosecuted by Senior Litigation Counsel Banumathi Rangarajan and Trial Attorney Lauren Steele of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section.
Rose Hill Woman Sentenced to Prison for Conspiring to File Fraudulent Income Tax ReturnsRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that on today, in federal court, United States District Judge Terrence W. Boyle, sentenced MIRNA LETICIA DURAN, 39, of Rose Hill, North Carolina, to 24 months imprisonment followed by 3 years of supervised release and ordered her to pay $247,290 in restitution to the Internal Revenue Service.
On June 27, 2016, DURAN pled guilty to conspiracy to file fraudulent income tax returns using Individual Taxpayer Identification Numbers (ITINs). The ITIN program enables aliens, who earn income in the United States, to file income tax returns and pay taxes. The wage and tax statements attached to these ITIN returns were fraudulent. Refunds were inflated by claiming fictitious dependents to obtain child tax credits. The total amount of refunds sought by DURAN and her co-conspirators exceeded 1.4 million dollars. The IRS did not issue all the refunds sought because it detected the fraud.
DURAN also filed a fraudulent return in her name, falsely claiming she earned income working for a company and paid withholding taxes resulting in a $9,409 tax refund.
The Internal Revenue Service’s Criminal Investigation Division led the investigation of this case with the assistance of the United States Department of Homeland Security Investigations (HIS), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Postal Inspection Service, and the Duplin County Sheriff’s Office.
Assistant United States Attorney Susan B. Menzer represented the government.
Leader of Heroin Trafficking OrganizationRead the Press Release
WILMINGTON – The United States Attorney’s Office announced today that ROBERT BOONE, 43, of Leland, North Carolina, was sentenced in federal court to 360 months imprisonment after having previously been convicted of conspiracy to distribute one kilogram or more of heroin and conspiracy to launder monetary instruments.
An investigation by federal and state law enforcement agencies revealed that BOONE operated a large scale drug trafficking organization (“DTO”) in his hometown of Paterson, NJ, which BOONE relocated to Wilmington, NC around 2012. From 2012 to 2015, the DTO “flooded” Wilmington with kilogram quantities of heroin. Couriers were employed to transport the heroin and heroin proceeds between New Jersey and Wilmington. The DTO utilized multiple bank accounts, wire transfers, and prepaid debit cards to launder hundreds of thousands of dollars in drug proceeds.
Multiple co-conspirators were charged and have already been sentenced in federal court in connection with this prosecution:
AARON VEAL was convicted of conspiracy to distribute heroin and sentenced to 60 months imprisonment. JAMES TOWNSEND was convicted of conspiracy to distribute heroin and sentenced to 84 months imprisonment. CRAIG DENSON was convicted of conspiracy to distribute heroin and sentenced to 180 months imprisonment. LARRY K. JOHNSON was convicted of money laundering conspiracy and sentenced to 96 months imprisonment. CHRISTOPHER ANTUAN JONES was convicted of conspiracy to distribute heroin and sentenced to 105 months imprisonment. DANIELLE JONES was convicted of conspiracy to distribute heroin and sentenced to 78 months imprisonment. SYRJAH KASHIK ALSTON was convicted of conspiracy to distribute heroin and money laundering conspiracy and sentenced to 96 months imprisonment. TAKEYAH ONI BAKER was convicted of money laundering conspiracy and sentenced to 42 months imprisonment. OCTABIA LAUREN BOONE was convicted of money laundering conspiracy and sentenced to 42 months imprisonment. FELICIA HALL was convicted of operating an unlicensed money transmitting business and sentenced to 3 years probation.
This case was brought as a part of an Organized Crime Drug
Enforcement Task Force (OCDETF) Operation entitled WoofPack,
investigating importers and multi-level distributors of heroin,
cocaine, crack cocaine and gang activity associated with this
DTO.
Investigation of this case was conducted by the Federal Bureau of Investigation – Wilmington Safe Streets Task Force, the Wilmington Police Department, the New Hanover County Sheriff’s Office, the North Carolina State Highway Patrol, the Sampson County Sheriff’s Office, and the Virginia State Police. Assistant United States Attorney Toby Lathan handled the prosecution on behalf of the Eastern District of North Carolina.
Former North Carolina Correctional Officer Sentenced to 5 Years ImprisonmentRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that GREGORY DUSTIN GOULDMAN was sentenced today to 60 months in prison followed by 3 years of supervised release.
On August 19, 2015, a federal grand jury in Raleigh returned an Indictment charging GOULDMAN, a former Sergeant in the High Security Maximum Control Unit (“HCON”) at Polk Correctional Institution (“Polk”) in Butner, North Carolina, with extorting funds from inmates in exchange for delivery of various contraband items.
GOULDMAN, who is 33 years of age, was employed as a Correctional Officer at Polk from 2005, through May of 2015. From 2012, through September of 2014, GOULDMAN held the position of Sergeant and worked as a supervisor in the HCON unit at Polk. The HCON unit was opened in 1998 to serve as North Carolina’s supermax prison for “the state’s most violent and assaultive offenders.” GOULDMAN misused his high level position of public trust to enter arrangements under which he smuggled tobacco, marijuana, cellular telephones, and packages of AA batteries (often used to fashion a device for charging the cellular telephones) to HCON inmates in exchange for electronic transfers or cash. The cellular telephones were used by the inmates to communicate with persons outside of prison and to transfer funds through the use of various internet accounts, such as green dot. GOULDMAN’s supervisory position in HCON provided him with the ability to meet with inmates without other correctional officers present. This privacy allowed GOULDMAN the freedom to negotiate prices and ultimately deliver the contraband items to the HCON inmates without witnesses. After being transferred out of HCON in September of 2014, GOULDMAN continued to smuggle contraband into Polk for additional inmates.
The United States Attorney’s Office and FBI’s investigation into Polk was prompted by the circumstances relating to the kidnapping conspiracy orchestrated by defendant Kelvin Melton through the use of a cellular telephone in his cell in HCON.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Dennis Duffy and Leslie Cooley.
Fayetteville, N.C. Man Sentenced to 8 Years for Failure to Register as A Sex Offender While Committing A Crime of ViolenceRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, Chief United States District Judge James C. Dever, sentenced SHELBY SHERROD PETTIES, 33, of Fayetteville, North Carolina, to 92 months imprisonment followed by 10 years of supervised release.
PETTIES was named in a 3-count Indictment filed on January 7, 2015. On September 12, 2016, he pled guilty to one count of Failure to Register as a Sex Offender While Committing a Crime of Violence.
On October 31, 2005, PETTIES was convicted of Second Degree Child Sex Abuse in the Superior Court of the District of Columbia. This conviction required him to register as a sex offender in the District of Columbia and to notify the District of Columbia Sex Offender Registry (DCSOR) of any address change within three days.
On February 18, 2013, PETTIES was arrested in Fayetteville, on the felonious charges of First Degree Kidnapping and Second Degree Rape, which occurred on February 6, 2013. At the time of his arrest, PETTIES provided a statement admitting that he moved to Fayetteville on August 2, 2012, and that he did not register as a sex offender with the Cumberland County Sheriff’s Office as required. According to the Sex Offender Registration Information Acknowledgement form signed by the defendant, PETTIES was required to notify the DCSOR and the Cumberland County Sheriff’s Office of his departure from the District of Columbia and his arrival in Fayetteville. Therefore, PETTIES committed the crimes of violence of First Degree Kidnapping and Second Degree Rape while in violation of the sex offender registration requirements.
PETTIES received an upward variance due to the additional crimes he committed on February 9, 2013, while in violation status of the sex offender registration requirements, PETTIES kidnapped and assaulted a female victim in his apartment in Fayetteville, North Carolina.
The criminal investigation of this case was conducted by the Fayetteville Police Department, Cumberland County Sheriff’s Office and the United States Marshal Service. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Goodall Found Guilty in Kidnapping Case of Wake Forest ManRead the Press Release
RALEIGH –The United States Attorney’s Office announced that on January 23, 2017, a jury found SHAMIEKA GOODALL, a/k/a Donna Diva, 30, guilty of Conspiracy to Commit Kidnapping and of a substantive count of Kidnapping.
In October of 2012, Kelvin Melton, one of the founding members of the United Blood Nation, was convicted by a Wake County jury on two counts pertaining to a gang-related shooting that occurred in Raleigh in September of 2011. As a result of this conviction, Melton was sentenced to life imprisonment and incarcerated in the maximum security unit at Polk Correctional Institution (“Polk”) in Butner, North Carolina. Melton concocted a plan under which he arranged for various low ranking gang members located in the vicinity of Atlanta, Georgia, to kidnap a person related to the North Carolina state prosecutor and then use such hostage to extort dismissal of his life imprisonment sentence.
During the early morning hours of Saturday, April 5, 2014, Melton held a conference call with various gang members located at GOODALL’s home in Covington, Georgia, during which he generally discussed the mission. The kidnapping team (which included a member that had been recruited by GOODALL) assembled at GOODALL’s house and GOODALL provided the team with funds to use during the course of the kidnapping mission. After traveling from Covington, Georgia, to Wake Forest, North Carolina, the kidnapping team arrived at the home of Frank Janssen (the state prosecutor’s father) just prior to noon on April 5, 2014. The kidnapping team used the ruse of delivering lost mail, to get Frank Janssen to open his front door. Mr. Janssen was then pistol whipped, tazed, and taken from his home against his will.
During the course of the trip back to Georgia, GOODALL and others were called upon to determine the location at which Mr. Janssen would be held. The kidnapping team was then instructed to bring Mr. Janssen to an apartment located in Southeast Atlanta. Mr. Janssen was bound to a chair and held in a small closet from the early evening of April 5, 2014, through late on the night of April 9, 2014. Just hours before Mr. Janssen was rescued, Melton called and instructed the kidnapping team (including the team member recruited by GOODALL) to find a location to bury Mr. Janssen and then return to the apartment and kill Mr. Janssen. Through a coordinated effort involving many federal, state, and local law enforcement agencies, the FBI’s Hostage Rescue Team rescued Mr. Janssen at 11:55 pm on April 9, 2014.
United States Attorney John Stuart Bruce stated, “As I stated when Kelvin Melton was convicted, this crime was monstrously cruel to the victim and his family, including a dedicated public servant who was being targeted for her public service. It was also an attack on our criminal justice system. We must do more to stop convicted prisoners from reaching out from their prison cells to harm witnesses and law enforcement officials, and to continue their criminal enterprises. The convictions in this case are a start.”
“Today is the final chapter in the prosecution of a heinous crime conducted by members of a violent gang. We hope this conviction sends a message that all gang members involved in these crimes will be held accountable. We would like to thank our federal and local law enforcement partners for their incredible cooperation which lead to an innocent man’s rescue and the convictions of those responsible,” said John Strong, the Special Agent in Charge of the FBI in North Carolina.
At sentencing, GOODALL faces a maximum penalty of life imprisonment and a $250,000 fine.
The case was investigated by the FBI Charlotte, FBI Atlanta, the Wake Forest Police Department, the North Carolina State Bureau of Investigation with assistance by the Durham County Sheriff’s Office, Raleigh Police Department, Durham Police Department, North Carolina Alcohol Law Enforcement, Garner Police Department, North Carolina Highway Patrol, RDU Police, City County Bureau of Investigation, the Cobb County Police Department, Alpharetta Police Department, Atlanta Police Department, and the Georgia Bureau of Investigation. The United States Attorney’s Office for the Eastern District of North Carolina is handling the prosecution of these cases.
Two More North Carolina Commercial Fishermen Plead Guilty to Illegally Harvesting and Selling Atlantic Striped BassRead the Press Release
WILMINGTON – The United States Attorney’s Office announced that today in federal court, ELLIS LEON GIBBS, jR., 53, of Engelhard, and DWAYNE J. HOPKINS, 43, of Belhaven, pled guilty to federal charges regarding the illegal harvest and sale of Atlantic striped bass from federal waters off the coast of North Carolina during 2010. GIBBS also pled guilty to obstructing a boarding by the United States Coast Guard.
According to the Indictments and information in the public records, in February 2010, a Special Agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic Striped Bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on the harvesting of Atlantic Striped Bass in the United States’ Exclusive Economic Zone (“EEZ”) which spans between 3 miles and 200 miles seaward of the U.S. Atlantic coastline.
Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, (the fishing vessel Lady Samaira) and boarded the vessel. At the time of the boarding, the Lady Samaira was captained by Defendant Ellis Leon Gibbs, Jr.
When asked by the Boarding Team, GIBBS admitted that he was targeting Atlantic striped bass. When asked where he caught the fish, GIBBS showed the boarding team certain electronically-saved track lines from the vessel’s navigation computer. The track lines shown by GIBBS, however, were fishing tows he made in state waters (where the harvest of striped bass would have been lawful at the time) on February 13, 2009, almost a year prior to the February 9, 2010 boarding.
The Boarding Team counted 173 Atlantic striped bass, ranging in size from 36- to 41.5 inches in length, on the deck of the Lady Samaira. After completing its inspection, the Boarding Team allowed the Lady Samaira to proceed to port in Engelhard, North Carolina, where NOAA agents awaited to conduct the dockside investigation.
Once the vessel reached port, NOAA agents boarded. Agents, however, found only 99 striped bass aboard the vessel. The crew of the Lady Samaira had discarded 74 Atlantic striped bass prior to getting port. The conservative retail value of the missing fish, based upon fillet weight, was over $12,000.
When questioned by NOAA agents, GIBBS initially lied and told the agents that he had caught the fish within state waters. When confronted with the data from NOAA’s vessel monitoring system, GIBBS subsequently confessed to fishing nine miles offshore and signed a written statement of his admission.
A subsequent forensic analysis of the Lady Samaira’s vessel computer (which was seized during the investigation) identified that Gibbs had saved track lines on his computer indicating he fished for striped bass approximately 9 miles into the EEZ, which he then deleted from his system. Agents recovered the deleted evidence, as well as evidence from earlier trips where GIBBS had done the same – that is, harvesting striped bass from the EEZ and deleted his track lines.
Based on its investigation, NOAA determined that between January 27, 2009, and February 10, 2010, GIBBS, as Captain of the Lady Samaira, harvested more than 9,000 pounds of Atlantic Striped Bass from the EEZ, which he sold to a fish dealer in Engelhard, North Carolina. The retail market value of the fish illegally harvested and sold by GIBBS exceeded $72,000. To conceal the illegal harvests, GIBBS submitted false statements, under penalty of perjury, to NOAA, claiming he caught the fish in state waters.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. Based on its review, NOAA determined that between January 29, 2009, and February 10, 2010, HOPKINS, then Captain of the Lady Carolyn, a commercial trawler, harvested more than 7,000 pounds of Atlantic Striped Bass from the EEZ, which he sold to fish dealers in Wanchese, North Carolina. The retail market value of the fish illegally harvested and sold by HOPKINS exceeded $55,000. To conceal the illegal harvests, HOPKINS submitted false statements, under penalty of perjury, to NOAA, claiming he caught the fish in state waters.
Three other commercial fisherman previously entered guilty pleas for conduct uncovered by the same investigation. United States v. Dewey W. Willis, Jr., No. 2:15-CR-3-F, United States v. James Ralph Craddock, No. 2:15-CR-7-F, United States v. Joseph Howard Williams, No. 4:15-CR-2-F.
“These prosecutions make clear that efforts to circumvent laws regulating commercial fishing -- which are implemented to sustain the species for the benefit of future generations -- will be prosecuted vigorously,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “Our office was pleased to partner with DOJ’s Environment and Natural Resources Division, NOAA, and other law enforcement agencies on these important cases.”
"NOAA's Office of Law Enforcement is committed to ensuring a level playing field for the fishermen who play by the rules. When people cheat the system, it hurts those who follow the rules the most," said Eileen Sobeck, Assistant Administrator for NOAA Fisheries.
A sentencing hearing has been scheduled for the Court’s April 24th term of court, 2017. GIBBS faces a maximum sentence of 10 years imprisonment and/or a $500,000 fine. HOPKINS faces a maximum sentence of five years in prison and a $250,000 fine.
The investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol, and the Virginia Marine Police. This case is being prosecuted by Assistant U.S. Attorney Banumathi Rangarajan and Trial Attorneys Shennie Patel and Shane Waller of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section.
New Bern Physician Charged with Unlawful Distribution of Narcotics, Money Laundering, and Possession of FirearmsRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announces that the federal grand jury in Greenville returned a thirty-one count indictment charging physician SANJAY KUMAR, age 50, of New Bern, with Conspiracy to Unlawfully Dispense and Distribute Oxycodone, Oxymorphone, Hydromorphone, and Alprazolam; Distribution of Oxycodone and Alprazolam; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity; and Laundering of Monetary Instruments.
If convicted, the maximum penalties for each charged drug count are twenty years’ imprisonment; a $1 million fine; and a term of supervised release of not less than three years following any term of imprisonment.
The maximum penalties for Possessing a Firearm in Furtherance of a Drug Trafficking Crime are no less than five years, up to life imprisonment, consecutive to any other sentence; a $250,000 fine; and up to three years supervised release following any term of imprisonment. A second or subsequent conviction for a firearms charge of this type carries a mandatory minimum term of twenty-five years imprisonment, consecutive to any other sentence.
The maximum penalties for each count of Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity are ten years’ imprisonment; a $250,000 fine; and up to three years supervised release following any term of imprisonment.
The maximum penalties for each count of Money Laundering are twenty years’ imprisonment; a $500,000 fine or twice the value of the property involved; and up to three years 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 the New Bern Police Department (NBPD), the Drug Enforcement Administration (DEA), the Internal Revenue Service (IRS) Criminal Investigations, the State Bureau of Investigation (SBI), and the Craven County Sheriff’s Office.
Greek Shipping Companies Sentenced to Pay $2.7 Million for Ocean PollutionRead the Press Release
Two Greek shipping companies were sentenced yesterday to pay corporate penalties totaling $2.7 million after being convicted for obstructing justice, violating the Act to Prevent Pollution from Ships (APPS), tampering with witnesses and conspiracy. Each company was ordered to pay part of its penalty to Gray’s Reef National Marine Sanctuary in recognition of the threat posed by illegal discharges of oily waste to the marine environment.
The case stems from an inspection of the M/V Ocean Hope, a large cargo ship, conducted by the U.S. Coast Guard at the Port of Wilmington, North Carolina in July 2015. During that inspection, senior engineers for the companies tried to hide that the vessel had been dumping oily wastes into the ocean for months.
Oceanfleet Shipping Limited, the vessel’s operator, was sentenced to pay a $1,350,000 fine and make a $450,000 community service payment to Gray’s Reef. Oceanic Illsabe Limited, the vessel’s corporate owner, was sentenced to pay a $675,000 fine and make a $225,000 community service payment to the reef. Each company was placed on a five-year term of probation and barred from sending ships to United States ports until its financial penalty has been satisfied.
The sentence was announced by Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division and U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina.
“We are pleased with the substantial penalties imposed by the court, which reinforces that pollution doesn’t pay,” said Assistant Attorney General Cruden. “We will continue to protect United States ports and waters, and uphold our treaty obligations, by vigorously prosecuting companies that dump oil at sea and then try to mislead U.S. Coast Guard inspectors with false statements and documents.”
The operation of commercial marine vessels generates large quantities of waste oil, oil-contaminated waste water and oil sludge. International and U.S. law forbid the discharge of oily wastes into the ocean. Should any overboard discharges occur, they must be documented in an official oil record book that is regularly inspected by the U.S. Coast Guard.
The evidence at trial demonstrated that the companies maintained a lax “paper” compliance regime focused on avoiding liability rather than adequately training and supervising engineers. The companies failed to follow their own environmental policies and also ignored important red flags, such as the vessel’s failure to offload oil sludge for many months and its rare use of a pollution prevention device known as an oil-water separator. The regular dumping of tons of bilge water into the ocean continued for at least six months. In addition, and on at least two occasions, senior engineers conspired to connect a flexible hose, known in the industry as a “magic pipe,” to discharge tons of heavy oil sludge. The most recent discharge occurred in June 2015, as the vessel headed for United States waters. Coast Guard inspectors and laboratory testing confirmed the presence of heavy oils in the vessel’s overboard discharge piping.
When the Ocean Hope arrived at the Port of Wilmington, the companies’ engineers ordered subordinates to lie to Coast Guard inspectors and to cover up evidence. The vessel’s Chief Engineer presented inspectors with a doctored oil record book, in which false accountings of the ship’s production and disposal of oily wastes were recorded.
“Our office was pleased to partner with the Department of Justice’s Environment and Natural Resources Division in this significant case and, pleased that the corporations responsible for this pollution were held accountable,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “We will continue to vigorously enforce federal laws designed to prevent the pollution of the world’s oceans.”
Though managed from Greece, Oceanic is registered in Liberia and had no significant assets besides the Ocean Hope, which was sold for scrap shortly after the indictment of this case. Oceanic and Oceanfleet are believed to be closely affiliated companies controlled by the same corporate principles out of Athens, Greece. During the period when the Ocean Hope was dumping oil into the ocean, Oceanfleet managed between ten and eleven vessels.
The vessel’s two top engineers were previously convicted and sentenced to serve prison sentences in connection with these crimes.
This case was investigated by the U.S. Coast Guard Sector North Carolina, the Coast Guard Investigative Service and U.S. Coast Guard District Five. Civil Chief Norman Acker and Assistant U.S. Attorney Michael Anderson of the Eastern District of North Carolina provided additional expertise and assistance with the pretrial phase of the case. The attorneys prosecuting the case were Senior Trial Attorney Kenneth Nelson and Trial Attorney Brendan Selby, of the Department of Justice’s Environmental Crimes Section and Banu Rangarajan of the U.S. Attorney’s Office of the Eastern District of North Carolina.
Apex Man Sentenced to 21 Years for the Manufacture of Child PornographyRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on January 4, 2017, United States District Judge Louise W. Flanagan sentenced ANGEL GUERRERO-URIEL, 24, from Apex, N.C., to 252 months in prison and 5 years of supervised release for the Manufacture of Child Pornography (CP). GUERRO-URIEL pled guilty to the charge on July 13, 2015.
In October 2015, the Federal Bureau of Investigation Child Exploitation Task Force (FBICETF) in Raleigh, North Carolina, received a cybertip from the National Center for Missing and Exploited Children (NCMEC) which indicated that images of child sexual exploitation had been uploaded on a social networking website which allows users to share photos, videos, and music. Additionally, the email address and Internet Protocol address (IP address) for the suspect was captured and provided to authorities. The subscriber to that IP address was identified.
Between September 20, 2015, and October 1, 2015, the suspect uploaded 47 files that portrayed child erotica and child sexual exploitation.
On December 15, 2015, the Apex Police Department in Apex, North Carolina, and the FBICETF executed a search warrant at the residence. Agents made contact with ANGEL GUERRERO-URIEL at the residence at which time he provided a statement and consented to a preliminary examination of his cellular phone. Specifically, GUERRERO-URIEL indicated that he lived at the address. Agents subsequently located GUERRERO-URIEL’s phone and a preliminary examination revealed a video of two minor males taking a shower; however, the video did not rise to the level of child pornography (CP). Nonetheless, the defendant acknowledged surreptitiously recording Victim 1, age 7, and Victim 2, age 8, in the shower on December 4, 2015. GUERRERO-URIEL advised that the victims frequently visited his residence because he was a longtime friend of their mothers. However, the defendant acknowledged maintaining iCloud and Dropbox accounts linked to his phone which contained images of CP, as well as the shower video he produced. As the preliminary examination of GUERRERO-URIEL’s phone continued, agents located a video which depicted the molestation of a child. The defendant acknowledged producing the video. GUERRERO-URIEL acknowledge producing two videos which depicted the sexual molestation of Victim 1.
A complete forensic examination of the defendant’s phone, computer equipment, and media storage accounts uncovered at least 85 images and 29 videos depicting CP; however, these images and videos were not manufactured by the defendant. Based on the investigation, GUERRERO-URIEL manufactured CP by filming himself sexually molesting Victim 1, a 7-year-old child, while acting as the child’s baby sitter/guardian. Furthermore, GUERRERO-URIEL produced child pornography on at least three occasions and engaged in prohibited sexual acts with Victim 1 on at least two occasions.
The case was investigated by the Federal Bureau of Investigation Child Exploitation Task Force (FBICETF) in Raleigh and the Apex Police Department. The federal prosecution was handled by Assistant United States Attorney Ethan A. Ontjes.
Eastern District of North Carolina United States Attorney’s Office Collects $8,476,074.72 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that they collected $8,476,074.72 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016. Of this amount, $3,313,619.45 was collected in criminal actions and $5,162,455.27 was collected in civil actions.
Additionally, the Eastern District of North Carolina worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $72,417,597.68 in cases pursued jointly with these offices. Of this amount, $10,437.68 was collected in criminal actions and $72,407,160.00 was collected in civil actions.
Attorney General Loretta E. Lynch announced on December 14, 2016 that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Loretta E. Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
EDNC United States Attorney John Stuart Bruce stated: “Our office is proud of its record in collecting money owed to United States and, by extension, American taxpayers. This includes criminal fines, civil judgments, and restitution to crime victims. This record reflects the hard work and professionalism of our attorneys and staff, especially our Financial Litigation Unit.”
The largest single collection action handled by the Eastern District of North Carolina involved illegal Medicare billing by Tuomey hospital in Sumter South Carolina. After two trials and two appeals, it was determined that Tuomey violated the Stark law and the False Claims Act; and the Court awarded a judgment in the amount of $237 million. After it became evident that the hospital could not pay the entire judgment, the Eastern District of North Carolina collected $72.4 million from the hospital to resolve the case
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 to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Eastern District of North Carolina, working with partner agencies and divisions, collected $2,302,748 in asset forfeiture actions in FY 2016. 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.
Pitt County Medicaid Biller Sentenced to 9 Years in Federal Prison for Participation in Medicaid Fraud ConspiracyRead the Press Release
WILMINGTON – The United States Attorney’s Office for the Eastern District of North Carolina announced that yesterday in federal court, DONNIE LEE PHILLIPS, II, 37, of Greenville, North Carolina, was sentenced to 108 months in federal prison and 3 years of supervised release following his prior guilty plea to Health Care Fraud Conspiracy and Aggravated Identity Theft. PHILLIPS was also ordered to make restitution of $5,722,364.09 to the victims of the offense, which included the North Carolina Medicaid program and a physician, whose name and identification number PHILLIPS and other conspirators used to commit the fraud. PHILLIPS was further ordered to forfeit certain proceeds of the fraud, including a truck, boat, and boat trailer.
PHILLIPS’s case is related to a prior health care fraud and money laundering case against Terry Lamont Speller, of Greenville. Speller was previously sentenced in March of this year to 20 years in federal prison for his role in the conspiracy.
According to the Criminal Information to which PHILLIPS pleaded guilty, as well as information provided at the sentencing hearing, between 2013 and 2015, PHILLIPS fraudulently billed the Medicaid program and Medicaid Managed Care Organizations for services that were not, in fact, provided by various outpatient behavioral health providers. PHILLIPS transmitted false billings on behalf of various individuals in the scheme and, in the process, fraudulently utilized the identities of more than 2000 minor children. Before being caught carrying out the fraud on audiotape by a confidential informant, PHILLIPS assisted participating providers to fraudulently acquire more than $5 Million. For his role in the scheme, PHILLIPS received around $300,000.
PHILLIPS was arrested on a warrant after investigators captured PHILLIPS on audiotape coordinating the billing fraud with another Medicaid provider. PHILLIPS later pleaded guilty to the charges of Conspiracy to Commit Health Care Fraud and Aggravated Identity Theft contained in the Criminal Information.
“When fraudsters like Donnie Lee Phillips bill Medicare and Medicaid for services never provided just to enrich themselves, the integrity of these taxpayer-funded health care programs is at risk," said Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services Office of Inspector General. "The sentence handed down in this case is a warning that health care fraud will not be tolerated.”
The investigation of this case was conducted by agents of the North Carolina State Bureau of Investigation assigned to the Medicaid Investigations Division of the North Carolina Attorney General’s Office; The Internal Revenue Service - Criminal Investigation; and the United States Department of Health and Human Services Office of the Inspector General. The investigation and prosecution of this matter is being handled in a partnership between the United States Attorney’s Office for the Eastern District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. Assistant United States Attorney William M. Gilmore of the Economic Crimes Division, and Special Assistant United States Attorney Daniel Spillman of the Medicaid Investigations Division of the North Carolina Attorney General’s Office, each represented the United States.
If you suspect Medicare fraud please report it by phone at 1-800-447-8477 (1-800-HHS- TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Another Commercial Fisherman Pleads Guilty to Illegally Harvesting and Selling Atlantic Striped BassRead the Press Release
WILMINGTON – The Justice Department announced that today in federal court, Joseph Howard Williams, 61, of Brunswick, Georgia, pleaded guilty to federal charges regarding the illegal harvest and sale of Atlantic Striped Bass from federal waters off the coast of North Carolina in 2010.
According to information in the public record, in February 2010, a Special Agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic Striped Bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on harvesting Atlantic Striped Bass from the United States’ Exclusive Economic Zone (EEZ), which includes waters located three to 200 miles seaward of the U.S. coastline. Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, the fishing vessel Lady Samaira, boarded the vessel and found 173 Atlantic Striped Bass. The captain later admitted to taking the fish from the EEZ.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. Based on the review, NOAA determined that between January 27, 2009, and January 29, 2009, Williams, as the Captain of the fishing vessel Joann B, harvested approximately 2,476 pounds of Atlantic Striped Bass from the EEZ, which he later sold to a seafood dealer in Engelhard, North Carolina. The investigation further revealed that between February 1, 2010, and December 18, 2010, Williams, harvested at least an additional 8,635 pounds of Atlantic Striped Bass from the EEZ, which he later sold to the same dealer in Engelhard, North Carolina. Williams’s email traffic during the relevant time frame corroborated the illegal harvesting activities in the EEZ and the use of code words to conceal the true species of the illegal catch. Williams also made false statements on his federal trip reports to conceal the true location of the harvest. The estimated fair market retail value of the 11,111 pounds of illegally harvested fish exceeds $88,000.
Two other commercial fisherman previously entered guilty pleas for conduct uncovered by the same investigation. United States v. Dewey W. Willis, Jr., No. 2:15-CR-3-F, and United States v. James Ralph Craddock, No. 2:15-CR-7-F.
“Fishing for striped bass in federal waters in violation of this longstanding and well-known moratorium has the potential to seriously impact this iconic species, to the detriment of the many honest commercial and recreational fishers who depend upon this fishery,” said Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division. “Today’s plea agreement demonstrates the department’s commitment to pursuing those who fail to respect laws enacted to protect and conserve important marine resources.”
“Our office is pleased to partner with the Environment and Natural Resources Division of the Department of Justice in these significant cases,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “These prosecutions make clear that efforts to circumvent laws regulating commercial fishing -- which are implemented to sustain the species for the benefit of future generations -- will be enforced vigorously.”
A sentencing hearing has been scheduled for the March 27, 2017, term of court. Williams faces a maximum sentence of five years in prison, a $250,000 fine, and forfeiture of the all of the fish illegally harvested and the equipment used to commit the offense, including the commercial trawler, and all gear, electronics, and other harvesting and sorting equipment on the trawler.
The overall investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol and the Virginia Marine Police. This case is being prosecuted by Senior Litigation Counsel Banumathi Rangarajan of the U.S. Attorney’s Office for the Eastern District of North Carolina and Trial Attorney Lauren Steele of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section.
Smithfield Man Sentenced for Drug Trafficking and Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, United States District Judge Louise W. Flanagan sentenced KENNETH EUGENE MCCOY, 44, of a Smithfield to 183 months of imprisonment followed by 5 years of supervised release.
MCCOY pled guilty on August 18, 2016 to Possession with the Intent to Distribute 28 Grams or More of Cocaine Base (Crack) and
a Quantity of Marijuana and to Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
An investigation was initiated by the Smithfield Police Department following the receipt of information about the drug trafficking activities of MCCOY from a residence in Smithfield. Officers learned that MCCOY had been selling unspecified amounts of cocaine base from the residence. Officers were able to make a purchase of an unspecified amount of cocaine base prior to obtaining a search warrant for MCCOY’s residence.
On October 16, 2015, MCCOY’s house was searched and officers found over 28 grams of cocaine base, a quantity of marijuana, and a stolen, Hi Point handgun, a RG .22 caliber handgun with ammunition, other assorted drug paraphernalia, and $428.88 in U.S. currency was found in the bedroom. The front and rear entrances to the residence were reinforced with devices to make unwanted entry difficult.
The criminal investigation of this case was conducted by the Smithfield Police Department, the Johnston County Sheriff’s Office, and the North Carolina State Crime Laboratory. Assistant United States Attorney S. Katherine Burnette is handling the case on behalf of the government.
Greenville Drug Trafficker Sentenced for Cocaine and Marijuana ConspiracyRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, Chief United States District Judge James C. Dever III sentenced JARRKU NATU BENNETT, 32, from Greenville, N.C., to 70 months in prison and 8 years of supervised release for conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine, a quantity of heroin and a quantity of marijuana. BENNETT pled guilty to this charge on August 17, 2015.
On March 3, 2015, the Greenville Regional Drug Task Force arrested BENNETT after a traffic stop during which detectives found 62 grams of cocaine and 111 grams of marijuana in BENNETT’S car. Further investigation revealed that BENNETT was responsible for the distribution of 1.5 kilograms of cocaine, 49 grams of crack cocaine, 1.8 kilograms of marijuana and an indeterminate amount of heroin between August 2014 and March 3, 2015.
The case was investigated by the Greenville Regional Drug Task Force, the North Carolina State Bureau of Investigation, the Pasquotank County Sheriff’s Office and the Federal Bureau of Investigation. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office, pursuant to funding provided by the North Carolina Conference of District Attorneys, to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
Fayetteville Black Market Purchaser Sentenced for Receiving Stolen Military Property from Fort Bragg, NcRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in Federal court, Chief United States District Judge James C. Dever III sentenced JOSEPH W. HORNER, JR., 73, of Fayetteville, North Carolina to 24 months imprisonment and three years of supervised release. HORNER was further ordered to pay restitution to the Department of Defense/United States Army in the amount of $277,901, which HORNER paid in full at his sentencing. On August 17, 2016, HORNER pleaded guilty to a one-count Criminal Information which charged him with receiving stolen government property between July 2011 and February 2013.
According to the charges on file, the government’s factual proffer at the plea hearing, and other public information, HORNER was a civilian black market purchaser in Fayetteville who engaged in a scheme to buy stolen military property from Christopher A. Mann, a former sergeant assigned to the United States Army Special Operations Command at Fort Bragg. During the offense period, Mann worked as a unit supply specialist in the 98th Civil Affairs Battalion, with responsibility for ordering and military supplies and equipment that was the property of the United States Department of Defense.
Mann used his position and privileges as a supply sergeant to coordinate the theft of bulk quantities of Meals-Ready-to-Eat or “MREs,” as well as assorted military equipment, including sunglasses and knives. Mann transported many of the stolen items off the base to HORNER, who would buy them for a fraction of their cost to the government. According to the investigation, between July 2011 and February 2013, HORNER purchased stolen military property from Mann valued at over $270,000. Notably, in 2006, HORNER entered into and completed a pretrial diversion agreement with the United States Attorney’s Office for receiving stolen property that originated from Fort Bragg.
On May 4, 2016, Mann pleaded guilty to theft of government property and aiding and abetting in United States District Court for the Eastern District of North Carolina. The charges related, in part, to Mann’s unlawful sales of stolen military property to HORNER. On October 26, 2016, Mann was sentenced to 20 months of imprisonment, among other terms of the judgment.
Investigation of this case was conducted by the United States Army Criminal Investigation Command, Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorney Adam F. Hulbig prosecuted the case on behalf of the government.
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News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce within 48 hours of release.
Ten Men Face Dog Fighting and Narcotics ChargesRead the Press Release
WILMINGTON – The United States Attorney’s Office for the Eastern District of North Carolina announces that 10 North Carolina men were arrested yesterday and today in a coordinated law enforcement operation for allegedly engaging in illegal dog fighting and selling narcotics in the Onslow County area.
The following individuals were indicted in a 17-Count Indictment returned by a federal Grand Jury.
- Lewis Edmond Andrews, Jr., 41 of Maple Hill
- Ronnie Jeremy Thompson, 39 of Jacksonville
- William Jay Farrior, a/k/a “Bo”, 36 of Maple Hill
- Randall Jacob James, a/k/a “Slim”, 32 of Maple Hill
- Mark Anthony West, 52 of Jacksonville
- Leo Chadwick, 63 of Hubert
- Aaron Richardson, a/k/a “Jit”, 41 of Jacksonville
- Cedric Gerard Cook, 38 of Fayetteville
- James David Martin, 38 of Maple Hill
- James Leslie Golden, III, 46 of Ayden
Andrews, Thompson, West, Chadwick, Richardson, Cook, and Martin were charged with Conspiracy to Violate the Animal Welfare Act. The federal Animal Welfare Act makes it a felony punishable by up to five years in prison to fight dogs or to possess, train, sell, buy, deliver, receive or transport dogs intended for use in dog fighting.
According to the Indictment, as part of the conspiracy, the defendants and their co-conspirators purchased, received, bred, trained, conditioned, transported, and delivered dogs for the purpose of entering them in dog fights. The defendants and their co-conspirators placed bets on animal fighting ventures, sometimes wagering as much as $100,000 on a single fight. Golden was charged with a misdemeanor for attending two dog fights.
Andrews, Farrior, and James are charged with conspiracy to possess with intent to distribute cocaine, cocaine base (or “crack”), and heroin. West was also charged with distributing cocaine base (or “crack”) within one thousand feet of Jacksonville Senior High School in Jacksonville, North Carolina.
Upon the arrests of the defendants, search warrants were executed on four properties suspected of containing dogs and dog fighting paraphernalia. In that process, approximately 156 dogs were seized. The ASPCA® (American Society for the Prevention of Cruelty to Animals®) has been requested by authorities to take custody of and provide daily care for the dogs seized during the arrests at a temporary shelter in an undisclosed location. The ASPCA is also providing assistance with evidence collection and conducting forensic examinations of the dogs seized in the case.
The case is being investigated by the Federal Bureau of Investigation (FBI), Jacksonville Police Department, and Onslow County Sheriff’s Office. Additional assistance was provided by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Wilmington Police Department, New Hanover County Sheriff’s Office, North Carolina State Highway Patrol, North Carolina State Bureau of Investigation, the United States Department of Agriculture, and the Cumberland County Sheriff’s Office. Assistant United States Attorney Laura Howard is prosecuting the case for the government.
The charges and allegations contained in the Indictment are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.
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News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.
Wilmington Man Sentenced for Drug Trafficking and Possession of A Firearm by A FelonRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, United States District Judge Louise W. Flanagan sentenced KRISTOPHER OWEN DANIELS, 32, of a Wilmington, North Carolina to 152 months of imprisonment followed by 5 years of supervised release.
DANIELS, was convicted in a jury trial on September 13, 2016 of Possession with Intent to Distribute a Quantity of Cocaine Base (Crack) and Marijuana; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and two-counts of Possession of a Firearm by a Felon.
On May 31, 2014, officers with the Wilmington Police Department, responded to the scene of a reported domestic incident involving an individual threatening the use of a gun. Investigation revealed that DANIELS engaged in a verbal argument with his mother, in their residence regarding money. His mother’s boyfriend, intervened on her behalf and DANIELS began arguing with him.
Investigators encountered DANIELS outside of the residence. DANIELS fled the scene on foot and was observed running with his hands in his pockets. Investigators challenged DANIELS to stop; however, DANIELS continued to run until he crashed into a nearby set of bushes where he was observed throwing items onto the ground. Upon searching the area, investigators recovered a loaded .38 caliber pistol, ammunition, an estimate of 23.094 grams of cocaine base (crack), $2,100 in U.S. currency, and approximately 5.32 grams of marijuana. Investigation determined that DANIELS is a convicted felon, which prohibits him from possessing firearms and ammunition. A search of DANIELS’ bedroom resulted in the seizure of a stolen .38 caliber revolver, ammunition, and $399 in U.S. currency. DANIELS stated that he purchased the stolen revolver from a neighbor.
The criminal investigation of this case was conducted by Wilmington Police Department, New Hanover County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF). Assistant United States Attorney S. Katherine Burnette is handling the case on behalf of the government.
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News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce within 48 hours of release.
Spring Lake Carjacker Sentenced to 15 Years in PrisonRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court Senior United States District Judge Malcolm J. Howard sentenced ROBAENON TREQUAN ALEXIS, 19, of Spring Lake, to serve 15 years in prison, followed by 3 years of supervised release, on charges of Carjacking and Aiding and Abetting and Felon in Possession of a Firearm.
The evidence showed that on June 26, 2015, ALEXIS and another approached a victim as she was exiting her vehicle in Spring Lake, and asked for a ride to jump start a car. After inside the vehicle, ALEXIS pointed a sawed-off firearm at the victim and threatened to kill her if she did not exit the vehicle. The victim complied and was left on the side of the road. ALEXIS was later arrested in Greensboro when local authorities there found ALEXIS and another person asleep in the victim’s car.
ALEXIS was indicted on various charges and later pleaded guilty on May 9, 2016.
Investigation of this case was conducted by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), with the assistance of the Granville County Sheriff’s Office, the Spring Lake and Greensboro Police Departments. Assistant United States Attorney William M. Gilmore represented the United States.
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News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.
Lenoir County Drug Trafficker Sentenced for Cocaine and Marijuana ConspiracyRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on December 6, 2016, United States District Judge Louise W. Flanagan sentenced HUBERTO ESPINDOLA-SOTO, 37, from La Grange, N.C., to 146 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine and 500 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. ESPINDOLA-SOTO pled guilty to these charges on June 14, 2016.
On November 12, 2014, after a lengthy investigation, DEA Task Force Officers arrested ESPIDOLA-SOTO after he left his residence in La Grange, N.C. During a search of the residence, officers found approximately 3 kilograms of crystal methamphetamine, 5 kilograms of cocaine, two assault rifles and a .22 caliber rifle. Officers arrested a co-conspirator, AUGUSTO ESPINDOLA-PINEDA, on the same day. The investigation revealed that the conspiracy involved 335 kilograms of cocaine, 3 kilograms of crystal methamphetamine and 500 pounds of marijuana. AUGUSTO ESPINDOLA-SOTO pled guilty to the same charges in May 2016 and is scheduled to be sentenced in February 2017.
This case was part of OCDETF Operation “Smokin’ Aces”. Operation “Smokin’ Aces” was designed to attack the infrastructure of Mexican Drug Trafficking Organizations operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These organizations are responsible for the importation of large quantities of cocaine, marijuana, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The case was investigated by the Drug Enforcement Administration, the Lenoir County Sheriff’s Office, the Greenville Police Department, the Johnston County Sheriff’s Office, the Wayne County Sheriff’s Office, the Wilson Police Department, the Rocky Mount Police Department, the Nash County Sheriff’s Office, the Goldsboro Police Department, the Raleigh Police Department, and the Person County Sheriff’s Office. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office, pursuant to funding provided by the North Carolina Conference of District Attorneys, to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
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News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.
Men Found Guilty of Home Invasion Robbery and ShootingRead the Press Release
RALEIGH – The United States Attorney’s Office announced that today, JAMES THORPE, 25 and JOSHUA MELVIN, 23, both of Durham, were found guilty in a jury trial before Chief Judge James C. Dever, III, of conspiracy to commit Hobbs Act robbery, and using, carrying, and discharging a firearm during and in relation to a crime of violence and possessing the firearm in furtherance of the robbery.
THORPE and MELVIN, along with two others, were indicted by a federal grand jury on March 16, 2016.
Evidence presented at trial established that THORPE, MELVIN, and others sought to rob the victim, a co-owner and promoter of the nightclub Vegas Night Life, of proceeds from the business. The defendants affixed a GPS tracking device to the victim’s vehicle in an effort to track his whereabouts and to determine the location of his residence.
On or about March 16, 2015, THORPE, MELVIN, and others traveled to the Morrisville residence and conducted a violent home-invasion robbery. Multiple victims were present during the robbery, including a female child and her mother. The child was pulled from her mother’s arms, forced into a bedroom, and threatened to be drowned as the robbers demanded money from the other victims. When an adult female victim attempted to intervene, she was beaten repeatedly. The intended target of the robbery was shot before jumping to the ground from a second story balcony. The defendants then led police on a car chase as they fled.
The case was investigated by the Federal Bureau of Investigation, the Morrisville Police Department, and the Durham County Sheriff’s Office. Assistant United States Attorney Toby Lathan and Special Assistant United States Attorney Boz Zellinger handled the prosecution.
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News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce within 48 hours of release.
Former Fort Bragg Army Sergeant and Owner of California Telemarketing Company Plead Guilty to Gratuity and Bribery ChargesRead the Press Release
GREENVILLE –The United States Attorney’s Office announced that today in federal court, ANTONELLE ANN SANCHEZ, 35, pled guilty to two counts of Accepting and Receiving a Gratuity. As part of her plea, SANCHEZ agreed to pay $95,610 in forfeiture. She faces a maximum of four years’ imprisonment. GEORGE SZEKERES, 67, pled guilty to one count of Bribery. As part of his plea, SZEKERES agreed to pay $95,610 in forfeiture, which he has already done. He faces a maximum of fifteen years’ imprisonment.
According to the Government’s recitation of the facts at the plea hearings, SANCHEZ was a supply sergeant with the United States Army stationed at Fort Bragg, North Carolina. She began accepting gift cards and later money orders from Advance Imaging Supply, Inc., a telemarketer that supplied printer cartridges. GEORGE SZEKERES was the owner of Advance Imaging. From May 13, 2011 to September 11, 2012, SANCHEZ received over $95,000 in postal money orders from Advance Imaging Supply, Inc. During this same time period, SANCHEZ, as Supply Sergeant, purchased more than $1,000,000 in printer cartridges from Advance Imaging. These cartridges were sent both to Fort Bragg and around the country. In early 2012, SANCHEZ reached an agreement with Advance Imaging, approved by SZEKERES, to receive 10% of the purchase price of the cartridges in money orders because she was sending them so much business.
“Our office was pleased to partner with DCIS and the FBI on this significant case. Fraud in government procurement is a serious matter and we will continue to prosecute it vigorously,” stated United States Attorney John Stuart Bruce.
"DCIS will pursue and expose corrupt contractors and government officials who abuse their positions of trust to line their own pockets with illegal kickbacks and gratuities," stated Special Agent in Charge John F. Khin, Southeast Field Office, Defense Criminal Investigative Service (DCIS). "Effective joint law enforcement efforts resulted in these defendants pleading guilty and forfeiting substantial monetary assets, demonstrating
once again that fraud schemes rarely go undetected, and once they unravel, those involved must pay the price for their crimes."
“These defendants made a deal with each other to defraud the government. Instead of conducting business in the best interest of the American public, they chose to line their own pockets. These type of crimes are at the center of the fight against public corruption," said John Strong, Special Agent in Charge of the FBI in North Carolina.
The criminal investigation of this case was conducted by Defense Criminal Investigative Service, the FBI, and U.S. Army Criminal Investigation Command-Major Procurement Fraud Unit. Assistant United States Attorney David Bragdon is handling the case on behalf of the government.
Treyton Thomas Charged in Multi-Million Dollar Investment Fraud SchemeRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that TREYTON LEE THOMAS, age 60, appeared today before a federal magistrate judge, in Charlottesville, Virginia, and was advised that he had been charged in an Indictment, returned by a grand jury in the Eastern District of North Carolina, with wire fraud, bank fraud and money laundering. When federal law enforcement agents and the Albemarle County police officers went to arrest him, THOMAS was armed and attempted to flee. The government has moved for pretrial detention. THOMAS elected to challenge the government’s detention motion in Charlottesville. The hearing is scheduled for Monday, December 5, 2016, in Charlottesville.
The Indictment alleges that THOMAS, who represented himself as a successful Harvard educated investment advisor, defrauded his father’s business, NC&VA Warranty of Roxboro, North Carolina, and several of its customers of millions of dollars by promising to invest their money in United States Treasury Bills. NC&VA sold warranties through used car dealerships and administered warranties sold by others, including Auto Protection Plus of Whiteville and Matthews Motors of Clayton. The money THOMAS promised to conservatively invest was set aside to cover all warranty claims if the premiums were insufficient. THOMAS, contrary to his promises and representations, either lost the money in risky trading in commodities, futures and foreign exchange markets or funded his extravagant lifestyle in Naples, Florida. THOMAS’s wife and father-in-law also invested with him, believing they were purchasing T-Bills. According to the Indictment, their money was similarly lost in risky trading or spent by THOMAS.
The on-line brokerage firms THOMAS used to conduct the trades were opened in the name of a Cayman Island corporation, Marbury Advisors. To assure his investors that the money was invested in T-Bills, THOMAS provided them and the banks that were monitoring the investments, US Bank and Fidelity Bank of Fuquay-Varina, with false information, misleading documents and fabricated statements.
THOMAS was also charged with three counts of bank fraud and one count of making a false statement to a financial institution relating to nearly 1.5 million dollars fraudulently obtained in loans from Wachovia and Southern Bank and Trust. Three additional counts of the Indictment charge THOMAS with money laundering, conducting financial transactions in excess of $10,000 with proceeds of the wire fraud scheme.
According to the Indictment, THOMAS lost more than $4,500,000 and spent more than $1,600,000 of the fraud proceeds to pay personal expenses.
Each wire and bank fraud count carries a maximum penalty of 30 years’ incarceration and a $1,000,000 fine. The money laundering counts carry a maximum penalty of 10 years’ imprisonment and a $250,000 fine. The Indictment also contained a notice that the government intends to seek the forfeiture of approximately $7.2 million from THOMAS upon conviction.
The charges and allegations contained in the Indictment are merely accusations. The defendant is considered innocent unless and until proven guilty in a court of law.
The case is being investigated by the Federal Deposit and Insurance Corporation, the Internal Revenue Service and the United States Secret Service.
North Carolina Commercial Fisherman Pleads Guilty to Illegally Harvesting and Selling Atlantic Striped BassRead the Press Release
WILMINGTON – The United States Attorney’s Office announced that today in federal court, JAMES RALPH CRADDOCK,71, of Manns Harbor, North Carolina, pleaded guilty to federal charges regarding the illegal harvest and sale of Atlantic Striped Bass from federal waters off the coast of North Carolina in 2010.
According to information in the public record, in February 2010, a Special Agent with the National Oceanic and Atmospheric Administration (NOAA) received information that commercial trawlers were illegally fishing for Atlantic Striped Bass in federal waters off the coast of North Carolina. Since 1990, there has been a ban on harvesting Atlantic Striped Bass from the United States’ Exclusive Economic Zone (EEZ), which includes waters located three to 200 miles seaward of the U.S. coastline. Upon receiving the information, NOAA engaged the assistance of the U.S. Coast Guard. A single patrol vessel in the area intercepted one of 17 commercial trawlers in the EEZ, the fishing vessel Lady Samaira, boarded the vessel and found 173 Atlantic Striped Bass. The captain later admitted to taking the fish from the EEZ.
Given the other commercial trawlers in the same area, NOAA conducted an analysis of electronic data and written reports from those vessels. Based on its review, NOAA determined that during the North Carolina 20-day ocean trawl season in January/February 2010, CRADDOCK, then Captain of the 74-foot commercial fishing vessel Capt Ralph, harvested over 12,000 pounds of Atlantic Striped Bass. Further analyses revealed that between February 1, 2010, and February 4, 2010, CRADDOCK, harvested 1,750 pounds of Atlantic Striped Bass from the EEZ, with an estimated fair-market retail price of approximately $14,000, which he sold to a dealer in Wanchese, North Carolina. CRADDOCK sent an e-mail to another vessel through the Capt Ralph’s vessel monitoring system and admitted to catching the Atlantic Striped Bass south of Buoy No. 8. Bodie Island Lighted Buoy No. 8 is located 6.5 nautical miles from shore, in the EEZ. The vessel monitoring system data from the Capt Ralph further corroborated the illegal harvesting of the fish. CRADDOCK then made false statements to NOAA, concealing the true location of the harvest in his federal vessel trip reports.
“Fishing for striped bass in federal waters in violation of this longstanding and well-known moratorium has the potential to seriously impact this iconic species, to the detriment of the many honest commercial and recreational fishers who depend upon this fishery,” said Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division. “Today’s plea agreement demonstrates the department’s commitment to pursuing those who fail to respect laws enacted to protect and conserve important marine resources.”
“Our office is pleased to partner with the Environment and Natural Resources Division of the Department of Justice in these significant cases,” said U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “These prosecutions make clear that efforts to circumvent laws regulating commercial fishing will be enforced vigorously.”
A sentencing hearing has been scheduled for March 27, 2017, term of court. CRADDOCK faces a maximum sentence of five years in prison and a $250,000 fine.
The overall investigation was conducted by the Law Enforcement Offices of NOAA, with assistance of the Investigative Service from the U.S. Coast Guard, the North Carolina Marine Patrol and the Virginia Marine Police. This case is being prosecuted by Senior Litigation Counsel Banumathi Rangarajan of the U.S. Attorney’s Office for the Eastern District of North Carolina and Trial Attorneys Shennie Patel and Joel La Bissonniere of the Justice Department’s Environment and Natural Resources Division’s Environmental Crimes Section.
Elizabeth City Woman Sentenced for Cocaine and Marijuana ConspiracyRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on November 10, 2016, United States District Judge Terrence W. Boyle sentenced SHIRITA MARIE JAMES, 37, from Elizabeth City, NC, to 135 months in prison and 5 years of supervised release for conspiring to distribute and possess with the intent to distribute five kilograms or more of cocaine and a quantity of marijuana. JAMES pled guilty to the charge on July 19, 2016.
On June 20, 2011, JAMES, her husband, Shawn Christopher Elliott, and her brother, William Thomas James, were arrested by the Greenville Regional Drug Task Force and the Drug Enforcement Administration when they attempted to buy 1 kilogram and 100 pounds of marijuana for $106,000 from a confidential informant. On November 10, 2015, members of the Greenville Regional Drug Task Force and North Carolina State Bureau of Investigation arrested JAMES in Lewiston-Woodville, NC, when she was delivering 498 grams of cocaine to a co-conspirator. The investigation revealed that between June 20, 2011, and November 10, 2016, JAMES was responsible for conspiring to distribute approximately 16 kilograms of cocaine and 45 kilograms of marijuana.
Elliott and William James were sentenced in 2013. Elliott received 70 months in prison followed by 8 years of supervised release. William James received 71 months in prison.
The case was investigated by the Greenville Regional Drug Task Force, the North Carolina State Bureau of Investigation, the Drug Enforcement Administration and the Federal Bureau of Investigation. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office, pursuant to funding provided by the North Carolina Conference of District Attorneys, to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
Wallace Couple Sentenced to Lengthy Prison Terms for Conspiring to File Fraudulent Income Tax ReturnsRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that on November 15, 2016, in federal court, Chief United States District Judge James C. Dever III, sentenced WALDA LUNA, 46, and PERFECTO RUANO, 57, both of Wallace, North Carolina, to lengthy terms of imprisonment and ordered them to pay nearly $3,000,000 in restitution to the Internal Revenue Service. The Court also issued an order, forfeiting $1,789,520 seized by the Arkansas State Police during a traffic stop in May, 2014, and four properties owned by the defendants in Duplin County.
On June 20, 2016, LUNA and RUANO pled guilty to conspiracy to file fraudulent income tax returns using Individual Taxpayer Identification Numbers (ITINs). The ITIN program enables aliens, who earn income in the United States, to file income tax returns and pay taxes. The wage and tax statements attached to these ITIN returns were bogus. The individuals never worked for those employers and never paid the taxes through withholdings claimed on the fraudulent returns. The couple used five post office boxes and four physical addresses in Duplin County to receive hundreds of fraudulent refund checks, seeking millions of dollars from the United States Treasury.
RUANO was sentenced to 57-months to be followed by three-years of supervised release. LUNA, who also pled guilty to filing a false individual income tax return in her name and aggravated identity theft for fraudulently claiming two individuals as dependents on her return to increase her refund, was sentenced to a total of 81-months. Since LUNA is not a United States citizen and is subject to deportation after serving her sentence.
United States Attorney John S. Bruce stated, "Our office was pleased to partner with IRS-Criminal Investigations Division, Homeland Security Investigations, U.S. Postal Inspection Service, and the Duplin County Sheriff's Office in this significant case. Refund fraud and identify theft are serious problems that victimize all law-abiding taxpayers as well as individual victims"
IRS Special Agent in Charge of the Charlotte Field Office, Thomas J. Holloman, III, commented that these sentences “show how seriously the courts take federal tax crimes.” Agent Hollomon stated the IRS remains diligent in “enforcing the law directed at those who attempt to defraud our nation’s tax system.”
Nick S. Annan, Special Agent in Charge of ICE Homeland Security Investigations, Atlanta Region, explained that such crimes “not only steal directly from hard-working taxpayers but also pose a serious threat to national security by introducing forged and fraudulent identity documents.”
The Internal Revenue Service’s Criminal Investigation Division led the investigation of this case with the assistance of the United States Department of Homeland Security, the United States Postal Inspection Service, and the Duplin County Sheriff’s Office.
Assistant United States Attorney Susan B. Menzer represented the government.
Melton Sentenced to Life for Kidnapping Case of Wake Forest ManRead the Press Release
RALEIGH – The United States Attorney’s Office announced that today, KELVIN MELTON, a/k/a Dizzy, a/k/a Old Man, 51, was sentenced by Chief United States District Judge James C. Dever, III, to life plus 84 months consecutive imprisonment. Judge Dever further recommended that MELTON serve both his federal sentence and the remainder of his North Carolina life sentence at the ADX Super Max Federal Penitentiary in Florence, Colorado in the most secure part of that facility.
On June 21, 2016, MELTON was found guilty in a jury trial of Conspiracy to Commit Kidnapping, Attempted Kidnapping and Aiding and Abetting, Kidnapping and Aiding and Abetting, and Using, Carrying, and Brandishing a Firearm During and in Relation to, and Possessing a Firearm in Furtherance of, a Crime of Violence, that being Kidnapping and Aiding and Abetting.
Frank Janssen was taken from his home against his will on April 5, 2014. One Eight Trey Blood member MELTON, used a cell phone that he illegally possessed while serving a life sentence in North Carolina’s Polk Correctional Institution in Butner, North Carolina, to transmit instructions to co-conspirators in the plot who then sent threats to Janssen’s wife. Specifically, MELTON gave instructions on how to kill Mr. Janssen, dispose of his body and sanitize the crime scene.
Through a coordinated effort involving many federal, state, and local law enforcement agencies, the FBI’s Hostage Rescue Team rescued Mr. Janssen at 11:55 pm on April 9, 2014, at a residence in Southeast Atlanta.
United States Attorney John Stuart Bruce stated, “The federal prosecution of Kelvin Melton is now complete, and justice has been served. The credit for this successful prosecution goes to the hard-working prosecutors in our office, the dedicated agents of the FBI, and scores of officers from state and local agencies who worked together to rescue the victim and solve the case.”
The case was investigated by the FBI Charlotte, FBI Atlanta, the Wake Forest Police Department, the North Carolina State Bureau of Investigation with assistance by the Durham County Sheriff’s Office, Raleigh Police Department, Durham Police Department, North Carolina Alcohol Law Enforcement, Garner Police Department, North Carolina Highway Patrol, RDU Police, City County Bureau of Investigation, the Cobb County Police Department, Alpharetta Police Department, Atlanta Police Department, and the Georgia Bureau of Investigation. The United States Attorney’s Office for the Eastern District of North Carolina is handling the prosecution of these cases.
Former Robeson County Attorney/Onslow County Real Estate Developer Sentenced to 17 Years for Bank FraudRead the Press Release
RALEIGH – The United States Attorney’s Office announced that today in federal court, JOSEPH HAL KINLAW, JR., 64, of Bald Head Island, North Carolina, was sentenced to 17 years in prison for Bank Fraud. KINLAW was also ordered to serve 3 years of supervised release following imprisonment, and to pay $23,796,372 in restitution to the victims of his offense.
Based upon the Criminal Information and evidence offered at the time of KINLAW’s sentencing, KINLAW was a licensed North Carolina attorney who operated various alleged real estate investment and development entities on behalf of investors in the Hubert area of Onslow County. KINLAW used the entities to obtain real estate development loans from Branch Banking and Trust (BB&T), and First Citizens Bank. BB&T and First Citizens Bank extended loans to these entities under the auspices that the entities would be engaged in the development of residential real estate in various subdivisions in the area of Camp Lejeune in Onslow County.
Between 2004 and April of 2013, KINLAW used the real estate development entities to defraud BB&T and First Citizens Bank by falsifying the legal descriptions of the loan collateral, and by falsifying releases of the collateral. By drafting a false legal description of the property, KINLAW was able to use the collateral for other real estate investment activities and loans. By fraudulently releasing the banks’ collateral before the banks’ loans had been satisfied, KINLAW was able, in several instances, to convey the collateral to third parties for value and continue the scheme.
To perpetuate the scheme and prevent its discovery, KINLAW also used outside funds, that is, funds unrelated to the real estate development activity that was the subject of each loan, to make ongoing loan interest payments to BB&T and First Citizens Bank. In some instances, KINLAW used loan proceeds on one transaction to make loan interest payments on another transaction. In other instances, KINLAW fraudulently extracted funds from other investors and their business interests to make payments on the loans. Numerous victims spoke at the sentencing concerning how KINLAW had harmed them.
Ultimately, banks stopped loaning money to KINLAW and his related companies and investors. As a result, the existing loans went into default. Because KINLAW had substituted false legal descriptions of bank collateral, and fraudulently conveyed bank collateral, BB&T and First Citizens Bank were unable to capture their loan losses in foreclosure. Various title insurance companies and investors also lost substantial funds to due to the scheme. While the exact amount of the loss remains the subject of investigation, losses are presently anticipated to exceed $18 Million.
The investigation of this case was conducted by the Federal Bureau of Investigation with the assistance of the United States Postal Inspection Service. Assistant United States Attorney William M. Gilmore of the Economic Crimes Division represented the United States.
Seven Associates of Bloods Gang Charged for Drug Distribution in WilmingtonRead the Press Release
WILMINGTON – United States Attorney’s Office for the Eastern District of North Carolina announced today that seven individuals associated with the United Blood Nation - Nine Trey gang in Wilmington have been charged in Criminal Complaints and in connection with the illegal possession and distribution of heroin. KEJUAN TIZOM SHABAZZ SMITH aka Bobby, 24, DAENZAL XAVIER MURPHY aka Zilla, 24, THEODORE PIERCE, JR., aka Three, 19, ALICIA RASHAWN JOHNSON aka Lili, 18, DARRELL TYKWAN ATKINSON aka Dada, 19, THEODORE ROOSEVELT HARDY, III, aka Trey, 23, and KHALIL DJOUR TRUESDALE, 20, were taken into custody on October 24, 2016. Detention hearings were held on October 31, 2016, and on November 1, 2016.
According to the Criminal Complaints filed on October 19, 2016, an investigation was begun in early April, 2016. In April and May, 2016, controlled purchases of heroin were coordinated and executed.
If convicted on the charges, all the defendants face a maximum penalty of 20 years imprisonment.
The case is being investigated by the Federal Bureau of Investigation Safe Streets Task Force, the North Carolina State Bureau of Investigation, the North Carolina State Highway Patrol, the New Hanover County Sheriff’s Office, the Jacksonville Police Department, the Onslow County Sheriff’s Office, and the Wilmington Police Department.
The charges contained in the criminal complaints are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Brunswick County Man Sentenced for Distribution of Crack, Heroin, & FirearmsRead the Press Release
NEW BERN – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court yesterday, United States District Judge Louise W. Flanagan sentenced JARVIS ALONZO DAVIS, 37, from Longwood, N.C., to 165 months in prison and 3 years of supervised release for distribution of a quantity of cocaine base (crack) and possession of a firearm by a convicted felon. DAVIS pled guilty to the charges on May 11, 2016.
In June 2015, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and detectives with the Brunswick County
Sheriff’s Office received information that DAVIS was involved in the distribution of narcotics. Between June 2015 and October 2015, agents made 11 controlled buys consisting of crack, heroin and 3 firearms.
DAVIS was arrested by agents on October 20, 2015, and subsequently provided agents with an unprotected statement. DAVIS admitted that he was on supervision with the United States Probation Office and that he could not legally possess a firearm. DAVIS admitted to selling the confidential informant over 2 ounces of cocaine base and three firearms. DAVIS reported that he purchased the firearms in Longwood, North Carolina.
Based on the investigation, DAVIS is responsible for the distribution of 80.36 grams of cocaine base, .128 gram of heroin, and 3 firearms. DAVIS also possessed a firearm in connection with the offense and made a credible threat to use violence.
The case was investigated by the Brunswick County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The federal prosecution was handled by Assistant United States Attorney Ethan A. Ontjes.
Charlotte Identity Thief Sent to Prison for 75 MonthsRead the Press Release
NEW BERN - United States Attorney John Stuart Bruce announced that today in federal court United States District Judge Louise W. Flanagan sentenced MAURICE ANTHONY DRUMMOND, 30, of Charlotte, to serve a total of 75 months in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft and Conspiracy to Commit Access Device Fraud. DRUMMOND was also ordered to make restitution of $86,691.56 to his victims, and to forfeit certain equipment used in the scheme.
At sentencing the Government argued that the defendant was involved in a scheme from 2013 to 2016 to obtain and use stolen credit card information to facilitate a scheme to acquire and sell large quantities of diesel fuel for resale. After acquiring stolen credit card information, DRUMMOND encoded the information onto used gift and credit cards. DRUMMOND then took the cards to various gas stations located throughout North Carolina, where he would use them to make large fuel purchases. DRUMMOND pumped the fuel into large storage containers held under a shell on the back of pickup trucks. DRUMMOND later resold the fuel at truck stops and other locations for a profit.
In 2014, DRUMMOND was captured by local authorities in Granville County in possession of hundreds of stolen credit cards and a machine used for re-encoding such cards. DRUMMOND was captured again in 2015 by local authorities in Charlotte as he continued to carry out the scheme while on release from state custody.
DRUMMOND pleaded guilty on March 16, 2016 to Conspiracy to Commit Access Device Fraud and Aggravated Identity Theft.
Investigation of DRUMMOND’s case was conducted by the United States Secret Service, with the assistance of the Granville County Sheriff’s Office, and the Gastonia Police Department. Assistant United States Attorney William M. Gilmore represented the United States.