Eastern District of North Carolina
Press releases recorded for this federal judicial district.
Cary Man Sentenced to 84 Months for Interstate Transportation of Women in Support of ProstitutionRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced TONY OBRIEN WILLIAMS, 29, of Cary, was sentenced by Senior United States District Judge Malcolm J. Howard to 84 months imprisonment followed by 10 years of supervised release.
On November 9, 2015, WILLIAMS pleaded guilty to Interstate Transportation for Prostitution and Use of the Internet to Promote Prostitution. According to the investigation, in January 2013, following the receipt of information that individuals in the Cary, North Carolina, area
were utilizing ads in the escort section on www.backpage.com (Backpage) to promote prostitution, the Cary Police Department (CPD) began conducting undercover operations in an effort to identify the individuals responsible. The investigation determined that from at least February 2012 to January 2015, WILLIAMS ran a prostitution operation from various hotels in North Carolina, Virginia, and Georgia. During this time frame, WILLIAMS recruited and employed several women whose prostitution services were advertised on Backpage. WILLIAMS used verbal threats, violence, and narcotics to maintain control over the women working for him and to force them to continue in prostitution. To limit their contact with family and friends and other external influences, WILLIAMS took away their identification cards and cell phones.
Investigation of this case was conducted by the Cary Police Department, and U.S. Immigrations and Customs Enforcement Homeland Security Investigations. Assistant United States Attorneys Barbara Kocher and Erin Blondel prosecuted the case of the government.
Wilson Man Sentenced for Heroin and Crack Conspiracy and Firearm OffenseRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court yesterday Senior United States District Judge Malcolm J. Howard, sentenced CLAUDE KING, 42, of Wilson, North Carolina, to 171 months’ imprisonment followed by 5 years’ supervised release.
September 14, 2015, KING pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute a Quantity of Heroin and Cocaine Base (Crack) and Possession of a Firearm in Furtherance of a Drug Trafficking Offense.
The investigation of KING began in 2013 for heroin and crack distribution. In September 2013, KING was arrested as he returned from New York with 50 grams of heroin. A search warrant was executed and a firearm was found at his home.
KING is responsible for the distribution of kilogram quantities of heroin in Wilson, Pitt, Beaufort, and Dare counties.
The criminal investigation of this case was conducted by the Drug Enforcement Administration, Wilson Police Department, Greenville Police Department, Beaufort County Sheriff’s Office, and Dare County Sheriff’s Office. Assistant United States Attorney Jennifer Wells handled the prosecution on behalf of the Eastern District of North Carolina.
Fayetteville Man Sentenced to 18 Years for Robbery, Carjacking, & Firearm OffensesRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court yesterday, Senior United States District Judge Malcolm J. Howard, sentenced JAMAAL EUGENE EVANS, 23, of Fayetteville, North Carolina, to 216 months imprisonment followed by 5 years of supervised release.
On November 19, 2015, EVANS pled guilty to robbery of a business engaged in interstate commerce, carjacking resulting in serious bodily injury, and discharging a firearm during and in relation to a crime of violence.
On July 31, 2013, EVANS telephoned a friend and asked for a ride. EVANS instructed the driver to proceed to a vacant church parking lot, which was a different location from where EVANS initially requested to go. EVANS displayed a firearm and told the victim to exit the vehicle. The victim complied with the defendant’s instructions. EVANS then shot the victim in each leg and fled the scene in the victim’s vehicle. The victim, who suffered a fracture to his left femur, crawled to a road to flag down assistance. He was later transported to the hospital for emergency medical treatment.
According to the investigation, on January 14, 2014, EVANS robbed the RJ Tobacco Store in Fayetteville, North Carolina at gun point. He took $475.00 in currency and merchandise.
During the robbery, EVANS did not wear gloves or a mask, and was caught on video. Officers from the Fayetteville Police Department responded to the scene and collected a water bottle that EVANS had brought to the counter. Subsequently, an expert was able to identify a latent print from the water bottle as EVANS’ print.
The criminal investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fayetteville Police Department, and the Cumberland County Sheriif’s Office. Assistant United States Attorneys Katherine Burnette and Carrie Randa handled the prosecution on behalf of the Eastern District of North Carolina.
Fourteen Individuals Convicted for Their Participation in Large-Scale Drug Distribution ConspiracyRead the Press Release
WASHINGTON – Eight current and former law enforcement officers, four correctional officers and two other individuals have been convicted for their participation in trafficking narcotics and narcotics proceeds for a large-scale drug trafficking organization, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina.
In April 2013, the FBI initiated an undercover investigation regarding allegations of systemic corruption within the Northampton County, North Carolina, Sheriff’s Office (NCSO). Undercover agents posed as members of a large-scale drug trafficking organization that was responsible for introducing kilogram quantities of narcotics to be transported up the I-95 corridor. In connection with their guilty pleas, the defendants admitted that they understood that they were recruited to work for the drug trafficking organization because of their status as law enforcement officers or ties to law enforcement. The investigation grew as the original targets recruited others to participate. The defendants transported purported narcotics and narcotics proceeds for the drug trafficking organization in exchange for bribe payments, and some defendants carried firearms during this time.
The following individuals pleaded guilty in the Eastern District of North Carolina:
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Lann Tjuan Clanton, a former correctional officer with the Virginia Department of Corrections, pleaded guilty to drug conspiracy and firearm charges today;
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Ikeisha Jacobs, a former sergeant with the NCSO, pleaded guilty to drug conspiracy, firearm and bribery charges today;
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Jason Boone, a former captain with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;
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Adrienne Moody, a former correctional officer with the North Carolina Department of Public Safety, pleaded guilty to a drug conspiracy charge today;
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Cory Jackson, a former deputy sheriff of the NCSO, pleaded guilty to a drug conspiracy charge today;
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Jimmy Pair Jr., a former lieutenant with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;
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Curtis Boone, a former deputy sheriff with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;
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Alphonso Ponton, a former sergeant with the Virginia Department of Corrections, pleaded guilty to a drug conspiracy charge today;
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Thomas Jefferson Allen II, a former sergeant with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;
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Wardie Vincent Jr., a former detective sergeant with the NCSO, previously pleaded guilty to drug conspiracy and firearms charges;
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Alaina Sue-Kam-Ling, a former correctional officer with the North Carolina Department of Public Safety, previously pleaded guilty to a drug conspiracy charge;
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Kavon Phillips, a former correctional officer with the North Carolina Department of Public Safety, previously pleaded guilty to a drug conspiracy charge;
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Crystal Pierce, of Raleigh, North Carolina, previously pleaded guilty to a drug conspiracy charge; and
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Tosha Dailey, a former 911 dispatch operator for Northampton County, previously pleaded guilty to a drug conspiracy charge.
The FBI Charlotte Division’s Raleigh Resident Agency investigated the case. Trial Attorneys Lauren Bell and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Toby W. Lathan of the Eastern District of North Carolina are prosecuting the case.
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Fourteen Individuals Convicted for Their Participation in Large-Scale Drug Distribution ConspiracyRead the Press Release
Eight current and former law enforcement officers, four correctional officers and two other individuals have been convicted for their participation in trafficking narcotics and narcotics proceeds for a large-scale drug trafficking organization, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina.
In April 2013, the FBI initiated an undercover investigation regarding allegations of systemic corruption within the Northampton County, North Carolina, Sheriff’s Office (NCSO). Undercover agents posed as members of a large-scale drug trafficking organization that was responsible for introducing kilogram quantities of narcotics to be transported up the I-95 corridor. In connection with their guilty pleas, the defendants admitted that they understood that they were recruited to work for the drug trafficking organization because of their status as law enforcement officers or ties to law enforcement. The investigation grew as the original targets recruited others to participate. The defendants transported purported narcotics and narcotics proceeds for the drug trafficking organization in exchange for bribe payments, and some defendants carried firearms during this time.
The following individuals pleaded guilty in the Eastern District of North Carolina:
- Lann Tjuan Clanton, a former correctional officer with the Virginia Department of Corrections, pleaded guilty to drug conspiracy and firearm charges today;
- Ikeisha Jacobs, a former sergeant with the NCSO, pleaded guilty to drug conspiracy, firearm and bribery charges today;
- Jason Boone, a former captain with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;
- Adrienne Moody, a former correctional officer with the North Carolina Department of Public Safety, pleaded guilty to a drug conspiracy charge today;
- Cory Jackson, a former deputy sheriff of the NCSO, pleaded guilty to a drug conspiracy charge today;
- Jimmy Pair Jr., a former lieutenant with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;
- Curtis Boone, a former deputy sheriff with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;
- Alphonso Ponton, a former sergeant with the Virginia Department of Corrections, pleaded guilty to a drug conspiracy charge today;
- Thomas Jefferson Allen II, a former sergeant with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;
- Wardie Vincent Jr., a former detective sergeant with the NCSO, previously pleaded guilty to drug conspiracy and firearms charges;
- Alaina Sue-Kam-Ling, a former correctional officer with the North Carolina Department of Public Safety, previously pleaded guilty to a drug conspiracy charge;
- Kavon Phillips, a former correctional officer with the North Carolina Department of Public Safety, previously pleaded guilty to a drug conspiracy charge;
- Crystal Pierce, of Raleigh, North Carolina, previously pleaded guilty to a drug conspiracy charge; and
- Tosha Dailey, a former 911 dispatch operator for Northampton County, previously pleaded guilty to a drug conspiracy charge.
The FBI Charlotte Division’s Raleigh Resident Agency investigated the case. Trial Attorneys Lauren Bell and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Toby W. Lathan of the Eastern District of North Carolina are prosecuting the case.
Pink Hill Men Sentenced for Methamphetamine Possession & Firearm OffenseRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court yesterday Senior United States District Judge W. Earl Britt, sentenced RALPH EDWARD STROUD, 50, and LORNE HOWARD, 47, both of Pink Hill, North Carolina, to 132 months’ imprisonment followed by 5 years’ supervised release and 70 months’ imprisonment followed by 3 years of supervised release respectively.
June 1, 2015, HOWARD pled guilty to possession with intent to distribute a quantity of a mixture or substance containing a detectable amount of methamphetamine and aiding and abetting. On June 29, 2015, STROUD pled guilty to the same charge and possession of a firearm in furtherance of a drug trafficking offense.
According to the investigation, on August 15, 2013, law enforcement executed a search warrant at STROUD'S home and property. Law enforcement detained STROUD and his girlfriend and discovered an active methamphetamine lab. Within the lab, officers recovered at total 5 grams of pseudoephedrine,
1,017.79 grams of liquid containing methamphetamine, .82 grams of methamphetamine, empty pseudoephedrine blister packs, homemade ammonia condensers, propane tanks, sulfuric acid, lye, pill grinders, tubing, Coleman camp fuel, fertilizer, stripped lithium batteries, and home HcL generators. A search of the residence recovered small amounts of unmeasured methamphetamine, drug paraphernalia, five firearms, and ammunition. Subsequent to his arrest, STROUD provided an unprotected statement acknowledging ownership of the firearms in his residence and the production of methamphetamine on his property.
On August 19, 2013, HOWARD was arrested and provided an unprotected statement acknowledging his use of methamphetamine and that he was present with STROUD on August 15, 2013, while methamphetamine was cooked. HOWARD admitted smoking methamphetamine with STROUD approximately 40 times and purchased it from STROUD approximately 20 to 30 times.
The criminal investigation of this case was conducted by the Lenoir County Sheriff’s Office, Duplin County Sheriff’s Office, the North Carolina State Bureau of Investigation and the Drug Enforcement Administration. Assistant United States Attorney Jennifer Wells handled the prosecution on behalf of the Eastern District of North Carolina.
Nine Arrested for Conspiracy to Traffic in Contraband CigarettesRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that the following men were indicted for conspiracy to traffic in contraband cigarettes, trafficking in contraband cigarettes, and aiding and abetting, and those indicated below in the Eastern District of North Carolina had their initial appearance in federal court today. The others are scheduled for their initial appearance in federal court in New York later today.
MOKHTAR ABDUL KAREM KHASHAFA, 34, of Durham (EDNC)
YOUSEF ABDULLA MOHAMED KAID, 35, of Durham (EDNC)
IBRAHIM ABDULLA KAIED, 39, of Durham (EDNC)
TAHA AL MONTASER, 31, of Greenville, North Carolina (EDNC)
AHMED AL MONTASER, 30, of Staten Island, New York
MOHAMMED NASSER ALI, a/k/a “Mo”, 50, of Durham (EDNC)
JABBAR MAZAB, a/k/a “Obaydah”, 38, of Brooklyn, New York
BASSAM SAAD, a/k/a “Sam”, 31, of Syracuse, New York
MUHAMMED LABBID AL HADDAWI, 27, of Durham (EDNC)
The Grand Jury indicted the above listed individuals on January 26, 2016.
According to the investigation, the object of the conspiracy was to profit from the illegal sale of large quantities of cigarettes by purchasing them in North Carolina and then selling them in the State of New York and New York City without paying the much higher taxes that apply there. During the relevant time period, the North Carolina state excise tax was $0.45 per pack of 20 cigarettes, or $4.50 per carton of ten packs. The New York State excise tax was $4.35 per pack ($43.50 per carton), and the New York City excise tax was an additional $1.50 per pack ($15.00 per carton). The total combined excise tax for New York State and New York City was $5.85 per pack, or $58.50 per carton. By evading the New York State and New York City excise taxes, Defendants and their co-conspirators were able to sell the contraband cigarettes at a lower cost, and at a higher profit margin, than competing cigarette sellers in New York who complied with federal and state law.
The Indictment alleges that some of the defendants and co-conspirators owned or operated retail stores in North Carolina, which enabled them to make wholesale purchases of large quantities of cigarettes from wholesale dealers, far exceeding the quantities of cigarettes actually being sold at the stores to retail customers in North Carolina. Defendants and co-conspirators in New York would arrange for the purchase of contraband cigarettes from defendants and co-conspirators in North Carolina. The contraband cigarettes would be transported by vehicle from North Carolina to various storage locations in New York. Various defendants and co-conspirators would apply counterfeit tax stamps to the cigarette packaging to create the false appearance that applicable New York State and New York City excise taxes had been paid.
The Indictment alleges that, from on or about June 15, 2015 to on or about January 16, 2016, the defendants and co-conspirators transported and sold approximately 22,205 cartons of contraband cigarettes, resulting in a total tax loss to the State and City of New York of approximately $1,224,947.50.
The charges are punishable by up to 5 years imprisonment, a fine of up to $250,00, and a term of supervised release of up to 3 years.
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.
The case is being investigated by FBI Raleigh with assistance from FBI Newburgh NY, FBI New York, FBI Syracuse, North Carolina State Bureau of Investigation, North Carolina Department of Public Safety, Raleigh Police Department, Durham Police Department, Cary Police Department, Greenville Police Department, North Carolina Alcohol Law Enforcement, North Carolina Probation and Parole, North Carolina State Highway Patrol, New York Department of Taxation and Finance, Internal Revenue Service, United States Marshals Service, and the Virginia National Guard Counterdrug Taskforce. Assistant United States Attorney Eric Goulian is representing the government in this case.
Wilmington Man Sentenced for Unlawful Possession of FirearmRead 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 KEVIN ROBINSON, 31, of Wilmington, North Carolina, to 84 months’ imprisonment followed by 3 years’ supervised release.
On July 28, 2015, a Federal Grand Jury returned a Criminal Indictment charging ROBINSON with unlawful possession of a firearm and ammunition by a convicted felon. On October 29, 2015, ROBINSON pled guilty to the charge.
According to the investigation, on April 16, 2015, Wilmington police officers located ROBINSON and executed an arrest warrant for a probation violation. As officers were placing ROBINSON under arrest, ROBINSON told officers he was carrying a gun in the waistband of his clothing. Upon a search, officers found a loaded Ruger P-90 .45 caliber handgun.
The criminal investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wilmington Police Department. Assistant United States Attorney Jane J. Jackson handled the prosecution on behalf of the Eastern District of North Carolina.
Former Fair Bluff Police Officer Charged with the Manufacturing of Child Pornography Pleads GuiltyRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on January 25, 2016, DONALD BRIAN BEAUCHAINE, 40, of Lake Waccamaw, North Carolina, pled guilty before Chief United States District Judge James C. Dever, III, to one count of manufacturing child pornography, in violation of Title 18, United States Code, Section 2251(a)and (d).
According to the investigation, On June 4, 2014, BEAUCHAINE was previously employed as a police officer with the Fair Bluff Police Department. He was caught secretly videotaping his girlfriend’s minor daughter in the bathroom. He admitted to videotaping the girl beginning in April 2014 until he was caught. A forensics examination of BEAUCHAINE’S cellphone and laptop 12,000 images of child pornography.
At sentencing, not yet scheduled by the court, BEAUCHAINE faces up to 30 years imprisonment.
The criminal investigation of this case was conducted by the North Carolina State Bureau of Investigation and the Lake Waccamaw Police Department. 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.
Columbus County Man Receives 11 Years in Prison for Crop Fraud Conspiracy, Money Laundering, and Bank FraudRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, MILTON RUSS BARNHILL, 48, of Tabor City, North Carolina, was sentenced to a total of 11 years in federal prison on charges of Conspiracy to Make False Statements in Connection with Federal Crop Insurance; Making False Statements in Connection with Federal Crop Insurance; Mail Fraud, and Money Laundering. BARNHILL was also sentenced to 3 years of supervised release and ordered to make restitution of $2,512,097 to various federal programs and to the Horry County State Bank. The Court also ordered BARHNILL to forfeit the proceeds of his crimes.
BARNHILL previously went to trial on these charges on August 4, 2015, but pled guilty following jury selection.
Count one of the Indictment charged the defendant with conspiring with others to defraud the Federal Crop Insurance Corporation (FCIC) and the Farm Service Agency (FSA), both agencies of the United States, in connection with federal crop insurance claims and other federal taxpayer subsidies. As charged, the defendant produced crops which he sold in the names of others. The Defendant and others then reported on insurance claims that the crops were lost due to natural disasters. The defendant also placed crops and insurance policies into the names of conspirators to boost the amount of money he could collect on the insurance claims.
Counts two through eight, ten, and eleven of the Indictment each charged the defendant with falsifying and aiding and abetting others to falsify federal crop insurance claims. The defendant received more than $1 Million into his bank account that was derived from hidden crop production, underreported crop production, and overstated crop acreages, all on federal crop insurance documents.
Count twelve of the Indictment charged the defendant with committing mail fraud that resulted in Horry County State Bank paying out approximately $450,000 in fraudulent loan proceeds. On this count, the defendant supplied a fictitious tobacco sales contract to Horry County State Bank as collateral for a farm operating loan. In fact, the contract was fictitious, included references to a bogus tobacco receiving station, and was signed using the name of a fictitious person. The phone number the defendant provided to the bank as the number for the tobacco receiving station was, in fact, a prepaid cell phone that the defendant purchased in Clinton, North Carolina. The P.O. Box for the tobacco receiving station was, in fact, a mailing address applied for by the defendant.
Counts fifteen through nineteen charged the defendant with using the proceeds from the foregoing frauds to fund other transactions in excess of $10,000 in value. The evidence showed that the defendant received fraudulent bank monies into his account. The defendant then used those funds to promote the ongoing production of crops in the names of conspirators, who he also caused to file false crop insurance claims.
The criminal investigation of this case was conducted by United States Department of Agriculture–Office of the Inspector General-Investigations; United States Department of Agriculture-Risk Management Agency–Special Investigations Branch; the United States Internal Revenue Service–Criminal Investigations; and the United States Postal Inspection Service, with the assistance of the Columbus County Sheriff’s Office and the Whiteville Police Department. Assistant United States Attorneys Banumathi Rangarajan and William M. Gilmore handled the prosecution on behalf of the Eastern District of North Carolina.
Three Indicted in Raleigh Witness Tampering and Obstruction CaseRead the Press Release
RALEIGH – United States Attorney’s Office for the Eastern District of North Carolina announced today that a federal grand jury in Raleigh, North Carolina returned a four count indictment charging DEMETRICE R. DEVINE, TIMOTHY A. DEVINE and CARLETTA P. ALSTON with conspiring to tamper with a witness, in violation of the provisions of Title 18, United States Code, Section 1512(k); witness tampering and aiding and abetting, in violation of the provisions of Title 18, United States Code, Sections 1512(b) and 2; obstruction of an official proceeding and aiding and abetting, in violation of the provisions of Title 18, United States Code, Sections 1512(c) and 2; and obstruction of justice and aiding and abetting, in violation of the provisions of Title 18, United States Code, Sections 1503(a) and 2.
The investigation revealed that beginning on July 1, 2015, Federal Bureau of Investigation agents and Raleigh Police Department officers interviewed and served federal grand jury subpoenas on individuals believed to have information on the illegal activities of a gang in Raleigh, North Carolina. After learning the identity of a witness subpoenaed to testify before a federal grand jury, DEMETRICE R. DEVINE, TIMOTHY A. DEVINE and CARLETTA P. ALSTON discussed a plan to approach the witness and inform the witness that individuals were watching the witness’ child, as a means to influence the witness’ testimony before a federal grand jury.
If convicted, the maximum penalties for the witness tampering counts are not more than 20 years imprisonment, a $250,000 fine, and a term of supervised release of not more than 5 years, following any term of imprisonment. The maximum penalties for the obstruction of justice count is not more than 10 years imprisonment, a $250,000 fine, and up to 3 years supervised release following any term of imprisonment.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty in a court of law. The case is being investigated by the Federal Bureau of Investigation and the Raleigh Police Department.
Identity Thief Sent to Prison for More Than 7 Years for Role in Credit Card and Cigarette Trafficking SchemeRead 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 ALPHA OUMAR DIALLO, 24, of New York, to serve a total of 95 months in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft, and Conspiracy to Commit Access Device Fraud. DIALLO was also ordered to make restitution to numerous victims.
According to the Indictment, DIALLO and co-conspirator Mamadou Bah were participants in a stolen credit card and cigarette trafficking scheme in 2013 and 2014. The purpose of the scheme was to use stolen credit card account information to purchase large quantities of cigarettes in North Carolina which were resold in other states. To carry out the scheme, participants acquired stolen credit card data from other conspirators and encoded the stolen data onto the magnetic strip of what appeared to be legitimate gift cards. Approximately 421 stolen credit card accounts were linked to DIALLO during the investigation of the case.
DIALLO admitted his involvement in the fraud, which included multiple fraudulent purchases of cigarettes from a gas station in Halifax County between December of 2013 and January of 2014. At the time of the fraud, DIALLO had absconded from federal supervision in Ohio relating to a prior offense of Access Device Fraud. A search of DIALLO’s residence and vehicle yielded other counterfeit credit cards and a firearm. After initially agreeing to plead guilty to the offense, DIALLO again absconded. DIALLO was later apprehended in Georgia where he attempted to escape the present charges by providing a fake name and date of birth to police.
Investigation of DIALLO’s case was conducted by the United States Secret Service, with the assistance of the Halifax County Sheriff’s Office and the Raleigh Police Department. Assistant United States Attorney William M. Gilmore represented the United States.
Sharpsburg Man Sentenced for Conspiracy to DistributeRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that on January 11, 2016 in federal court, Chief United States District Judge James C. Dever III sentenced ARLO T. WRIGHT, 40, of Sharpsburg, North Carolina, to 30 months imprisonment, followed by 3 years of supervised release.
WRIGHT was named in a Criminal Information filed on July 15, 2015, charging him with conspiracy to distribute and possess with the intent to distribute a quantity of cocaine base (crack). WRIGHT pleaded guilty to that charge on August 17, 2015.
According to the investigation, the Nash County Sheriff’s Department utilized a confidential informant to buy two ounces of crack cocaine from WRIGHT on December 10, 2013, at WRIGHT’s residence in Sharpsburg, North Carolina. On December 16, 2013, the confidential informant bought another two ounces of crack cocaine from WRIGHT at WRIGHT’s residence. During both of the controlled buys, the confidential informant was provided with audio and video equipment to record the transactions.
Investigation of this case was conducted by the Nash County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney Dena J. King represented 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.
Beulaville Man Sentenced to 20 Years for Receiving Child PornographyRead the Press Release
Raleigh – The United States Attorney’s Office for the Eastern District of North Carolina announces that in federal court today Chief United States District Judge James C. Dever sentenced JOHN EDWARD RYAN, JR. 60, of Beulaville to 240 months imprisonment followed by a lifetime of supervised release.
On October 5, 2015, RYAN pled guilty to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2).
According to public information, in July, 2014, an investigation was initiated relating to the distribution and receipt of child pornography through a peer-to-peer file sharing network. An Internet Protocol (IP) address was identified and as the investigation continued the subscriber assigned to the IP address was captured and identified as RYAN.
On September 3, 2014, a search warrant was executed at RYAN’S residence. An initial onsite preview revealed the presence of child pornography on RYAN’S computer. RYAN who was present at the time of the search, acknowledged receiving and possessing child pornography. Forensic examination of the defendant’s computer and media storage devices revealed approximately 2,415 images and 1,072 videos depicting child pornography. In December 2014, family members informed investigators that RYAN previously molested his adopted daughter and step-granddaughter and these facts were considered by the court during sentencing.
The criminal investigation of this case was conducted by the North Carolina State Bureau of Investigation and the Onslow County Sheriff’s Office. 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.
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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.
Three Face Federal Charges in Cumberland County for Cocaine Distribution ConspiracyRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that a federal grand jury in Raleigh returned a four count indictment (attached) charging three defendants with conspiring to distribute and possess with intent to distribute cocaine.
The following people were indicted and arrested in December 2015. They are detained by order of a federal judge.
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Genesis Lee Whitted, Jr., aka “Gen” and “Juice Man”, 26, of Fayetteville, NC
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Wayne Desmond Whitted, aka “Weezy”, 24, of Fayetteville, NC
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Joel Michael McLaurin, Jr., aka “Knowledge,” 29, of Fayetteville, NC
Genesis Lee Whitted, Jr. was also charged with Possession of a Firearm in Furtherance of a Drug Trafficking Crime and Brandishing a Firearm During and In Relation To a Drug Trafficking Crime.
If convicted, the maximum penalties for the charged drug count are twenty years’ imprisonment, a $1 million fine, and a term of supervised release of not less than 3 years following any term of imprisonment.
The maximum penalties for Possessing a Firearm in Furtherance of a Drug Trafficking Crime are no less than 5 years, up to life imprisonment, consecutive to any other sentence; a $250,000 fine; and up to 3 years supervised release following any term of imprisonment. The maximum penalties for Brandishing a Firearm in Furtherance of a Drug Trafficking Crime are no less than seven years, up to life imprisonment, consecutive to any other sentence; a $250,000 fine; and up to 3 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 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.
The case is being investigated by the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Fayetteville Police Department (FPD).
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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
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Former SCHOOL TEACHER Pleads guily in child pornography caseRead the Press Release
GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announces that in federal court today, WILLIAM EDWARDSON, JR., 56, of Jacksonville, pled guilty before United States Magistrate Judge Kimberly A. Swank to receipt of child pornography, in violation of Title 18, United States Code, Section 2252 (a) (2).
On September 2, 2015, a Federal Grand Jury returned a Criminal Indictment charging EDWARDSON. At the time, EDWARDSON was a teacher and soccer coach at Trexler Middle School in Richlands, North Carolina.
According to the investigation, law enforcement identified an IP address downloading and sharing child pornography via the peer-to-peer network, Shareaza. As the investigation progressed, the address and user were identified as EDWARDSON. EDWARDSON was interviewed and admitted to downloading visual depictions of minor children engaging in sexually explicit conduct.
Investigation of this case was conducted by the NC State Bureau of Investigation. Assistant United States Attorney Ethan Ontjes represented the government. This case was accepted for federal prosecution as part of Project Safe Childhood.
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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.
Marlin Maurice Jackson Sentenced to 3 Years ImprisonmentRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, Senior United States District Judge James C. Fox sentenced MARLIN MAURICE JACKSON, 36, to 36 months imprisonment, followed by 3 years of supervised release. He also ordered payment of $ 615,536 in restitution
jackson was named in a Criminal Information filed on April 28, 2015. He pled guilty to one count of false, fictitious, and fraudulent claims for refunds, in violation of Title 18, United States Code, Section 287. Evidence presented at JACKSON’s plea and sentencing showed that JACKSON used the identities of others, often without their knowledge, to prepare and file fraudulent tax returns.
The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation. Assistant United States Attorney David Bragdon is handling the case on behalf of the government.
“As filing season is upon us, the message should be clear that if you engage in fraud at the expense of other taxpayers in order to enrich yourself, as Marlin Jackson did in this case, IRS Criminal Investigation will investigate your criminal actions and ensure that you are held responsible.” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation.
David Christopher Mayhew Sentenced to 26 Years ImprisonmentRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, Senior United States District Judge James C. Fox sentenced DAVID CHRISTOPHER MAYHEW, 43, of Raleigh, NC to 320 months imprisonment, followed by 3 years of supervised release. He also ordered payment of $2,025,300 in restitution
MAYHEW was named in a Superseding Indictment filed on July 2, 2014. He was originally indicted on July 9, 2013. His co-defendant, Ronald McCullough, has not yet been located and arrested on the charges.
Special Agent in Charge Thomas J. Holloman III stated, “The IRS, Criminal Investigation is committed to using our Agent’s financial expertise to help bring those that prey on innocent taxpayers for their own enrichment to justice.”
At trial, the Government presented evidence that MAYHEW was involved in an investment fraud scheme that spanned from January 2009 to May 2012 and swindled more than $2,000,000 from investors, promising them returns as much as 100% in 30 days. One victim testified that he had lost his family’s house as a result of the fraud. Two other victims testified that they had to back out of contracts to purchase property because of the fraud.
Investigation of this case was conducted by the FBI, the IRS Criminal Investigation, the Postal Inspection Service, and the North Carolina Secretary of State’s office, Securities Division. Assistant United States Attorney David A. Bragdon represented the government. AUSA Bragdon stated: “MAYHEW used trust in himself and trust in others to deprive victims of money, money that many of them had taken a lifetime to save.”
"When making investment decisions, Investors should always consider that if it sounds too good to be true, it probably is,” said Thomas Noyes, Inspector in Charge of the US Postal Inspection Service Charlotte Division. "This case was especially egregious because the defendants used the victims’ religious beliefs to gain their trust and steal their money. The US Postal Inspection Service will continue to vigorously pursue those who utilize the US Mail to steal our customers’ hard earned money."
“David Mayhew promised his victims huge investments returns, instead they lost their homes, their life savings, even property where they planned to build a church. Now he’ll pay for his crimes behind bars. The FBI and federal partners will keep exposing those responsible for these schemes as long as innocent people are being swindled,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
Beaufort Resident Sentenced for Making False Distress Calls to the U.S. Coast GuardRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Louise W. Flanagan sentenced CHARLES ROBERT DOWD, 27, of Beaufort, North Carolina, to 41 months of imprisonment and 3 years supervised release and was ordered to pay $18,994.00 in restitution. On September 16, 2015 DOWD entered a guilty plea to making false distress calls to the United States Coast Guard.
"The Coast Guard has a long and proud history of Search and Rescue, often at great personal risk to those who chose to devote their life to the service of others. False distress calls incur significant cost to the public by obligating search resources and vast amounts of tax payer dollars. More importantly, they risk the very lives of responders for cases where no actual distress exists. Additionally, these false distress calls take search and rescue resources away from those who may be in real distress," said Captain Sean Murtagh, commander of Sector North Carolina. “Through the vigilance of the public, our strong partnerships with the Department of Justice, the U.S. Attorney's Office, and our Coast Guard Investigative Service, this case affirms our collective commitment to holding accountable those individuals who make hoax calls."
According to information in the public record, on October 20, 2013, the United States Coast Guard received a “MayDay” call in which the caller claimed a vessel with five adults and two children was taking on water and sinking near the Core Creek Bridge in Beaufort, North Carolina. The calls indicated that one child was stuck on the vessel and could not be seen. Upon receipt of the distress call, small boats from Coast Guard Station Fort Macon, North Carolina; a helicopter from the Marine Corps Air Station at Cherry Point, North Carolina; a towboat from a local salvage company; and emergency responders from the sheriff’s office and two fire departments were deployed to assist in the search and rescue of the vessel. However, response crews found no vessel or persons in distress. Ultimately, the Coast Guard determined that the call was a hoax, but not until after $18,994.00 worth of resources were expended.
The search and rescue efforts were led by United States Coast Guard – 5th District and Coast Guard Sector North Carolina. The criminal investigation of this case was conducted by the United States Coast Guard Investigative Service. Assistant United States Attorney Susan B. Menzer prosecuted the case.
Former Deputy Pleads Guily in Child Pornography CaseRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced that in federal court, JON JAMES THOMAS, 45, pled guilty before Senior United States District Judge James C. Fox to receipt of child pornography, in violation of Title 18, United States Code, Section 2252 (a) (2).
On October 15, 2015, a Federal Grand Jury returned a Criminal Indictment charging THOMAS. At the time, THOMAS was a patrol deputy with the Onslow County Sheriff’s Department.
According to the investigation, law enforcement identified an IP address downloading and sharing child pornography via the peer-to-peer network, Shareaza. As the investigation progressed, the address and user were identified as THOMAS. THOMAS was interviewed and admitted over the past two years to downloading visual depictions of minor children engaging in sexually explicit conduct.
Investigation of this case was conducted by the NC State Bureau of Investigation. Special Assistant United States Attorney Ethan Ontjes represented the government. This case was accepted for federal prosecution as part of Project Safe Childhood.
United States Attorney Thomas G. Walker Announces ResignationRead the Press Release
RALEIGH – Thomas G. Walker, the U.S. Attorney for the Eastern District of North Carolina has submitted his resignation to President Barack Obama effective January 7, 2016. Mr. Walker will be returning to private practice.
Mr. Walker was sworn into office on July 8, 2011, after nomination by President Barack Obama and confirmation by the United States Senate. He took the oath of office from Chief United States District Judge James C. Dever III. As United States Attorney, Mr. Walker oversaw all federal criminal and civil matters in the 44 eastern counties of North Carolina.
“Throughout his tenure as United States Attorney for the Eastern District of North Carolina, Thomas Walker has proved himself to be a consummate public servant and an exemplary law enforcement officer,” said Attorney General Loretta Lynch. “In every case and every instance, Thomas has embodied the Justice Department’s highest standards of integrity and professionalism. Thanks to his outstanding leadership, his office is well positioned for years of continued success. And because of his tireless efforts in a range of areas – from national security to environmental protection, and from veterans’ rights to the fight against human trafficking – the communities in his district are stronger, safer, and more just. I thank him for his dedication, and I wish him well as he begins the next chapter of his already distinguished career.”
“Words cannot express the appreciation that I have for the opportunity to serve the Eastern District of North Carolina. I will forever be grateful to President Barack Obama, and to Senator Richard Burr and former Senator Kay Hagan for their nomination and approval,” said U.S. Attorney Thomas Walker.
North Carolina Man Charged in Fraudulent U.S. Treasury Check SchemeRead the Press Release
WASHINGTON – A federal grand jury sitting in Raleigh, North Carolina, returned an indictment, which was unsealed today against a Raleigh man, charging him with one count of conspiracy to commit theft of public money and 22 counts of theft of public money, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Thomas G. Walker for the Eastern District of North Carolina.
According to the indictment, in 2011 and 2012, Wilfredo Acosta Hidalgo conspired with two check cashers to cash U.S. Treasury checks issued as a result of fraudulent tax returns filed in the names of third-parties. Hidalgo provided U.S. Treasury checks ranging in value from $4,000 to $8,000 to the check cashers. These checks were issued to third parties in whose names the fraudulent tax returns were filed. The third-party payees purportedly lived in Florida, North Carolina, Virginia, Maryland, Delaware, Pennsylvania and New Jersey. The check cashers deposited the U.S. Treasury checks into their business bank accounts and then provided Hidalgo with cash equal to the value of the check minus a check cashing fee. The third-party payees were not present when the checks were cashed.
If convicted, Hidalgo faces a statutory maximum sentence of five years in prison for the conspiracy charge and 10 years in prison for each count of theft of public funds. He also faces substantial monetary penalties, supervised release and restitution.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Walker commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Nathan P. Brooks and Lauren M. Castaldi of the Tax Division, who are prosecuting this case. Acting Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of North Carolina for its assistance.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Enginerring Officers Charged in Scheme to Cover up Oil Discharges from Cargo VesselRead the Press Release
GREENVILLE - A federal grand jury in Greenville, North Carolina has returned a nine-count indictment charging two engineering officers employed by Oceanfleet Shipping Limited with crimes relating to the illegal discharge of oily wastes directly into the sea, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and United States Attorney Thomas G. Walker for the Eastern District of North Carolina. Oceanfleet Shipping Limited is a Greek shipping company that operates the cargo carrier M/V Ocean Hope. The two engineering officers indicted are the vessel’s Chief Engineer, Rustico Yabut Ignacio, 65, of the Philippines; and the Second Engineer, Cassius Flores Samson, 51, of the Philippines.
According to the indictment, in 2015, Samson bypassed pollution prevention equipment with an unauthorized hose connection, or “magic pipe,” to discharge oil sludge generated by the M/V Ocean Hope directly into the sea. Samson also ordered crewmembers on numerous other occasions to pump oily mixtures from the vessel’s bilges into the sea using the ship’s General Service Pump rather than processing these mixtures through the vessel’s pollution prevention equipment.
The operation of marine vessels like the M/V Ocean Hope generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard. To hide the illegal discharges, Ignacio and Samson allegedly maintained a fictitious oil record book that failed to record the disposal, transfer, or overboard discharge of oil from the vessel. The oil record book also contained false entries stating that pollution prevention equipment had been used when it had not.
The indictment further alleges Ignacio and Samson ordered subordinate crewmembers to lie to the U.S. Coast Guard during an inspection in Wilmington, North Carolina. The crewmembers were allegedly instructed to deny knowledge of the connection of a magic pipe to discharge sludge and to tell the Coast Guard that Oily Water Separator was being used as required under international law to process oily mixtures before discharge.
Both engineering officers were charged with violating the federal Act to Prevent Pollution from Ships for failing to record overboard discharges in the vessel’s oil record book, conspiracy for their agreement to violate federal law, obstruction of justice for presenting false documents intended to deceive the Coast Guard, and witness tampering for ordering subordinate crewmembers to mislead and lie to the Coast Guard. Samson was also charged with false statements and obstruction of justice for lying to Coast Guard inspectors about the discharges. If convicted, they face a maximum penalty of 20 years in prison for the obstruction of justice charges (this statement may need to be rephrased – given the 5 year stat max on the 1505 count, in addition to other possible penalties. An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent unless and until proven guilty.
The case was investigated by the U.S. Coast Guard, Sector North Carolina. Assistant United States Attorney Banumathi Rangarajan with the U.S. Attorney's Office for the Eastern District of North Carolina, and Trial Attorneys Shane N. Waller and Brendan Selby for the Environmental Crimes Section are prosecuting the case.
Seven Sentenced for Methamphetamine Distribution in Johnston, Wilson, and Wayne CountiesRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announces that seven individuals were sentenced for their involvement in a methamphetamine distribution organization. All 7 were part of the same drug trafficking organization operating in Johnston, Wilson, and Wayne Counties. The organization called themselves “The Hill-Top Mafia” due to the close affiliation they have with methamphetamine, guns, and violence.
The following individuals were charged in a 13-count indicted on September 16, 2014. Count 1 charged conspiracy to manufacture, distribute, dispense, and possess with intent to distribute a mixture and substance containing a detectable amount of methamphetamine between November 2011 and September 16, 2014. Counts 2 and 3 charged distribution and possession with intent to distribute a quantity of a mixture and substance containing a detectable amount of methamphetamine on March 18, 2013 and March 26, 2013 respectively. Counts 4 and 7 charged possession with intent to distribute a quantity of a mixture and substance containing a detectable amount of methamphetamine and aiding and abetting on September 13, 2013 and December 9, 2013 respectively. Counts 5, 6, and 9 charged possession of equipment, chemicals, products and material with the intent to manufacture methamphetamine and aiding and abetting on October 16, 2013 and December 9, 2013 respectively. Counts 8 and 10 charged possession of pseudoephedrine with the intent to manufacture methamphetamine and aiding and abetting on December 9, 2013, and December 12, 2013, respectively. Count 11 charged possession of a firearm by a felon on December 12, 2013. Count 12 charged possession of a stolen firearm on December 12, 2013. Count 13 charged possession of a firearm in furtherance of a drug trafficking Crime on December 12, 2013.
The count of the indictment each pleaded guilty to is annotated as well as their sentence.
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William Bryan Hill, 32, of Kenly, NC – Count 1, 121 months & a lifetime of supervised release
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Samuel Wayne Hill, 26, of Smithfield, NC – Count 1, 480 months & a lifetime of supervised release
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William Joseph Hill, 28, of Princeton, NC – Count 1, 175 months & a lifetime of supervised release
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Terry Matthew Hall, 21, of Wilson, NC – Count 1, 225 months & a lifetime of supervised release
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Michael Eugene Custer, 40, of Princeton, NC – Count 1, 123 months & a lifetime of supervised release
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Dolly Wadsworth Evans, 46, of Smithfield, NC – Count 1, 157 months & 10 years of supervised release
Samantha Leigh Ross-Varner, 24, of Goldsboro, NC was named in a two-count Criminal Information filed on May 5, 2015. Count 1 of the Criminal Information charged conspiracy to manufacture, distribute, dispense, and possess with the intent to distribute a mixture and substance containing a detectable amount of methamphetamine between November 2011, and September 16, 2014. Count 2 charged Ross-Varner with possession of a firearm by a felon on December 12, 2013. She pled guilty to the two count Criminal Information on May 11, 2015. On December 8, 2015 Ross-Varner was sentenced to 180 months imprisonment followed by a lifetime of supervised release.
“The NC State Bureau of Investigation values its partnerships with local and federal law enforcement in the continued fight against methamphetamine production in North Carolina, and appreciates the Eastern District United States Attorney’s Office for their ongoing work and continued support in this investigation,” stated Special Agent in Charge Todd Duke who is the supervisor of the NCSBI’s Clandestine Laboratory Response Unit.
As a result of an on-going investigation into methamphetamine production in the Wayne and Johnston County, areas, federal, state, and local authorities identified several individuals, including Samuel Wayne Hill, William Joseph Hill (Jody Hill), William Bryan Hill, Terry Matthew Hall (Matt Hall), Michael Eugene Custer, Samantha Leigh Ross-Varner, Dolly Wadsworth Evans, and others, were involved in the production of methamphetamine between 2010 and 2014. Manufacturing methamphetamine requires pseudoephedrine, found in over-the-counter cold medicine, as well as other commonly found ingredients including lithium (usually stripped from batteries), plastic tubing, dry ice, Coleman fuel, muriatic acid, fertilizer, and liquid drain cleaner. The majority of these items can be purchased at retail stores such as Lowe’s Home Improvement Center and Walmart.
The investigation established that the conspiracy centered in the Brogden area of Johnston County. The investigation established that residence and property owned by Evans was a hub of this conspiracy, along with the residences of Samuel Hill, Jody Hill, and related family properties. Evans, a methamphetamine user, allowed her property to be used by all of the conspirators for manufacturing and using methamphetamine. Samuel Hill, Jody Hill, Bryan Hill, Custer, and Hall were methamphetamine cooks. Evans, who had a job through the period of the conspiracy, allowed conspirators to live in her house and purchased chemicals and items used in the production of methamphetamine in return for methamphetamine. Ross-Varner was a methamphetamine user and cook and she purchased pseudoephedrine and other items for use in the production of methamphetamine. During a portion of the conspiracy, Ross-Varner lived with Evans and dated Samuel Hill.
The case was investigated by the North Carolina State Bureau of Investigation, the Johnston County Sheriff’s Office, the Wayne County Sheriff’s Office, the Wilson County Sheriff’s Office and the Drug Enforcement Administration. Assistant U.S. Attorney Jennifer Wells prosecuted the case for the government.
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Men Found Guilty of KidnappingRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today that a jury convicted AKIN SEAN EL PRECISE BEY, of Knightdale, North Carolina, and GEORGE LINCOLN STANLEY IV, of Durham, North Carolina of conspiracy to commit kidnapping and kidnapping. AKIN SEAN EL PRECISE BEY was also convicted of being a felon in possession of a firearm and ammunition. The jury returned its verdict following a trial in federal court before Senior United States District Judge W. Earl Britt.
The investigation showed that the victim had been kidnapped from his home after returning from attending a boxing match in Las Vegas. The kidnappers laid in wait at the victim’s house and, after beating him badly, took him to a storage unit where he was held and tortured. Crime scene technicians recovered the kidnappers’ fingerprints, as well as the victim’s blood, within the storage unit. Zip ties were still attached to a chair within the storage unit and the victim’s personal identification was located on a table. The victim, who was severely injured with a swollen eye, ligature marks on his wrists and ankles, and duct tape still on his face and neck, was eventually located by law enforcement on a dark dirt road in Nash County, North Carolina. A search warrant executed at BEY’S house uncovered six firearms; a .32 caliber pistol, Judge Long Colt revolver, .40 caliber pistol, .38 caliber revolver, a rifle, and a 12 gauge shotgun. At the time, BEY was prohibited from possessing any firearms as he had been previously convicted of a crime punishable by imprisonment for a term exceeding one year.
At trial, the evidence showed an elaborate scheme to target and kidnap the victim in order to steal money from him. The defendants broke into the victim’s house when they knew the victim would be out of town. The defendants waited in the victim’s home and attacked the victim when he arrived. The defendants ransacked the victim’s home looking for money. The defendants demanded money of the victim and kidnapped him where they assaulted the victim further in a storage unit and demanded more money. A large sum of cash was taken from the victim. At the time of their arrests, BEY had over $55,000.00 cash in his home and STANLEY had over $21,000.00 cash in his pocket.
Two other individuals, Hubert Dixon, of Durham, North Carolina, and Judson Hugh Debnam, of Raleigh, North Carolina, were also charged with crimes related to this incident and pleaded guilty to conspiracy to commit robbery. The defendants are set to be sentenced at the March 28, 2016 term of Court.
The investigation and arrests were handled by the Raleigh Police Department, Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Raleigh/Wake City-County Bureau of Identification, State Bureau of Investigation, Wake County Sheriff’s Office, Durham County Sheriff’s Office and Johnston County Sheriff’s Office. Special Assistant U.S. Attorney Jonathan Holbrook and Assistant U.S. Attorney Dena King represented the government. Mr. Holbrook is a prosecutor with the Wake County District Attorney’s Office. Wake County District Attorney Lorrin Freeman has assigned Mr. Holbrook to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Holbrook’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Eastern District of North Carolina U.S. Attorney’s Office Collects $15,047,564.36 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today that the Eastern District of North Carolina collected $15,047,564.36 in criminal and civil actions in Fiscal Year 2015. Of this amount, $11,011,638.80 was collected in criminal actions and $4,035,925.56 was collected in civil actions.
Additionally, the Eastern District worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $64,395,812.90 in cases pursued jointly with these offices. Of this amount, $64,323,714.67 was collected in criminal actions and $72,098.23 was collected in civil actions.
Attorney General Loretta E. Lynch announced on December 3, 2015 that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and half times the approximately 2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.
"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
“The United States Attorney’s Office has made the efficient and effective collection of restitution on behalf of victims of crime a top priority,” stated Mr. Walker. “Collection of restitution on behalf of the United States is essential during the current budgetary restraints.”
During the past fiscal year the Eastern District of North Carolina has returned millions of dollars to victims of crime. In one such case, US v. Dwight Lane Woolard, over $540,000.00 was recovered and returned to the Department of Defense. In another case, US v. Clay Taylor Strickland, the office recovered and returned $298,415.00 to the United States Department of Agriculture following Strickland’s conviction.
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 $3,915,737.00 in asset forfeiture actions in FY 2015. 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.
Jacksonville Man Sentenced to 121 Months for Receipt of Child PornographyRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced JASON LEE LEVESQUE, 42, of Jacksonville, North Carolina, to 121 months imprisonment, followed by 5 years of supervised release.
JASON LEE LEVESQUE was named in an Indictment filed on March 3, 2015 charging him with receipt and possession of child pornography. On August 31, 2015, LEVESQUE pled guilty to receipt of child pornography.
On January 31, 2014, agents with the FBI Child Exploitation Task Force in Dallas, Texas successfully downloaded over 1,000 images of child pornography using peer to peer file sharing software from the defendant at his IP address. A subsequent search of computers and other devices from the defendant’s Jacksonville, North Carolina home revealed that LEVESQUE had downloaded over 1300 images of child pornography.
Investigation of this case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Carrie Randa represented the government.
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.
Greenville Drug Trafficker SentencedRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today, Chief United States District Judge James C. Dever III sentenced ARTKES BENNETT, 36, of Greenville, North Carolina, to 192 months in prison followed by 6 years of supervised release for conspiracy to distribute and possess with the intent to distribute quantities of methamphetamine and heroin, distribution of methamphetamine, and possession with the intent to distribute heroin. BENNETT previously pled guilty to these charges on June 15, 2015.
The Greenville Regional Drug Task Force used an informant to buy methamphetamine from BENNETT on December 30, 2014. BENNETT was arrested on January 13, 2015, after 50 bags of heroin were found in his car. The investigation revealed that between June 2014 and January 2015, BENNETT was responsible for distributing approximately 80 grams of heroin, .95 grams of methamphetamine, and 907 grams of cocaine in Pitt County, North Carolina.
BENNETT faced an enhanced penalty due to his status as a career offender based on two prior convictions for selling cocaine and a prior conviction for possession with the intent to distribute heroin. On July 30, 2014, BENNETT was a participant in the Greenville Regional Offender Watch or “GROW” Up Program. This focused deterrence program is designed to assist repeat offenders in becoming more productive members of their communities by offering education opportunities, work training, and substance abuse treatment. Offenders are provided a notice of prohibited offenses and the severe consequences of committing such offenses.
The investigation of this case was conducted by the Greenville Regional Drug Task Force. 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 to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Former Bank Employees Plea to Making False EntriesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, before Chief United States District Judge James C. Dever III, APRIL LYNN LOCKLEAR, 35, of Rowland, North Carolina and CHONA KAY OXENDINE, 32, of Shannon, North Carolina pleaded guilty to conspiracy to make false entries in bank records. The charge carries a maximum penalty of 5 years’ imprisonment, and a fine of $250,000.00.
On March 24, 2015, LOCKLEAR and OXENDINE were indicted by a federal grand jury on 16 counts related to crimes committed while they were employed by the Lumbee Guaranty Bank headquartered in Pembroke, North Carolina. During the course of an investigation into a bank robbery that occurred at the Lumbee Guaranty Bank branch in Red Springs, North Carolina on April 9, 2010, it was discovered that $500,000.00 was missing from the bank in addition to the money stolen during the robbery. The investigation quickly focused on LOCKLEAR and OXENDINE. When questioned by investigators, LOCKLEAR and OXENDINE claimed that they were robbed of $500,000.00 while working alone in the branch in 2009, but did not report the incident due to concerns for their safety. They admitted to falsifying a cash out ticket for the missing funds. A cash out/in ticket is a document that is created to post money into or out of an account, teller drawer or the vault so that it is electronically accounted for.
Investigation revealed that beginning in August 2009, LOCKLEAR and OXENDINE falsified bank entries, reports, and transactions by creating false tickets ranging from $150,000.00 to $500,000.00. These false tickets were created to throw off any audit that would have uncovered the missing money to make it look like money had left the bank. These false entries gave the appearance during an audit that the books were in balance, when in fact they were not.
Additional investigation into LOCKLEAR’S and OXENDINE’S personal bank accounts showed a high volume of unaccounted for cash deposits over several years.
Chief Judge Dever scheduled sentencing for the Court’s February 22, 2016 term of court.
The investigation of this case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Felice M. Corpening represents the government.
Clayton Man Sentenced to 15 Years After Guilty Plea to Felon in Possession of A Firearm and AmmunitionRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrance W. Boyle sentenced MARKIE DEVON JONES, 39 of Clayton, North Carolina, to 180 months followed by 3 years of supervised release.
On August 12, 2015, JONES pled guilty to one count of felon in possession of a firearm and ammunition.
According to the investigation, On November 6, 2014, a deputy with the Johnston County Sheriff’s Office observed JONES driving a vehicle erratically and crossing the center line of the roadway. The deputy made a traffic stop and noticed JONES attempting to conceal something as he was exiting the vehicle. A Clayton Police Officer arrived at the scene and they attempted to take JONES into custody, but Jones resisted. After a brief struggle, JONES was placed in handcuffs and searched. A stolen loaded .45 caliber handgun was discovered in JONES’ rear waistband area. Additionally, several ski masks and latex gloves were found in the vehicle’s glove box. JONES has multiple previous felony convictions and was sentenced as an armed career criminal.
The criminal investigation of this case was conducted by the Johnston County Sheriff’s Office and the Clayton Police Department. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
Wilson Man Sentenced for Armed Bank RobberyRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, ANTONIO DASHAWN PITT, 21, of Wilson, North Carolina, was sentenced before United States District Judge James C. Dever, III. PITT received 125 months imprisonment followed by a 4 year term of supervised release.
On November 24, 2014, a Criminal Indictment was filed charging PITT with armed bank robbery, in violation of 18 U.S.C. § 2113, and brandishing a firearm during a crime of violence, in violation of 18 U.S.C. § 924(c). On May 4, 2015, PITT pleaded guilty to the charges contained in the indictment.
According to the investigation, on July 7, 2014, officers of the Wilson Police Department in Wilson, North Carolina, responded to a robbery call at the State Employees Credit Union (SECU) in Wilson. The investigation revealed that PITT entered the credit union wearing a wig and dark glasses. PITT approached a teller, threw a bag at her, and demanded that she fill the bags. As PITT jumped over the counter, he lost his wig. According to one witness, he pointed the firearm in her direction and ordered her to the floor. After the teller filled the bag, PITT approached the window teller before he jumped over the counter. A total of $22,236.06 was taken from the bank; however, $20,236.06 was immediately recovered after a dye pack exploded in the bag. PITT fled the scene on a bicycle. The wig, glasses, firearm, and bicycle were all recovered. PITT provided a confession to the robbery.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Wilson Police Department. Assistant United States Attorney Rudy E. Renfer prosecuted the case for the United States.
Former East Carolina University Pharmacy Adminstrator Pleads Guilty to Filing Fraudulent Documents to Stock Pharmacy InventoryRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that Tuesday in federal court, LEIGH LANGLEY COBB, 43, of Winterville, North Carolina, pleaded guilty to Making Materially False, Fictitious, and Fraudulent Statements and Entries Concerning Health Care Matters.
According to the Criminal Information to which COBB pleaded guilty, between the years 2000 and 2012, COBB worked for one of several clinics and pharmacies operated by the Brody School of Medicine, within East Carolina University (ECU) in Greenville, North Carolina. COBB had responsibilities pertaining to the receipt and dissemination of drugs to ECU patients. COBB also assisted patients at one of the Brody School of Medicine’s various clinics to apply to participating drug companies to receive medicine at a reduced rate, through what are known as Patient Assistance Programs (PAPs).
Between January of 2010 and October of 2012, COBB falsified numerous PAP applications and transmitted them to various victim drug companies. The applications were false because many of the prescriptions contained within them were fraudulent and forged. While in many instances patients at ECU’s clinics genuinely sought medicine from the drug companies pursuant to the PAP programs, COBB added numerous additional drugs to the applications for which the patient did not have a prescription, and which were not medically necessary for the patient. In many instances, the patient at issue had not been prescribed any of the medications listed on the application, and the physicians identified were not the physicians of record for the patients listed on the application. To cause the drug companies to supply these drugs, COBB forged signatures of both physicians and patients. One such false application occurred on March 27, 2012.
After receiving the false applications transmitted by COBB on behalf of ECU patients, the drug companies relied upon them and shipped medicines to The Bernstein Center Pharmacy, within the ECU system, that were not covered by a doctor’s prescription. COBB received the Unauthorized Drugs and placed them into The Bernstein Center Pharmacy’s drug inventory for later dissemination and sale to other patients.
The total losses from the offense are unknown, but the parties are in agreement that the losses are between $550,000 and $1.5 Million.
At sentencing, COBB faces up to 5 years in prison and 3 years of supervise release. The defendant also faces a fine of up to $250,000 and restitution if ordered by the court.
The investigation of this case was conducted by the East Carolina University Police Department and the United States Food and Drug Administration – Office of Criminal Investigations. Assistant United States Attorney William M. Gilmore of the Economic Crimes Division represents the United States.
Wilmington Man Sentenced to 240 Months for Interstate Transportation of Women in Support of ProstitutionRead the Press Release
RALEIGH - United States Attorney Thomas W. Walker announced RANDOLPH JOHNSON SPAIN, 26, was sentenced yesterday by Senior United States District Judge James C. Fox to 240 months imprisonment.
SPAIN was found guilty after trial by jury in January, 2015, of Interstate Transportation in Support of Prostitution on two separate occasions. The evidence at trial indicated SPAIN met and wooed a woman for several months, then took her to Myrtle Beach, SC, where he told her he was a pimp and she would be his prostitute or “face the consequences.” Thereafter, he controlled that woman, as well a second woman who testified at trial, through violence, and took both women to Virginia and other states for prostitution. The investigation revealed SPAIN also controlled and exploited additional women.
SPAIN was sentenced to 240 months’ imprisonment, the statutory maximum. The term of imprisonment is to be followed by 10 years’ supervised release.
Investigation of this case was conducted by the Wilmington Police Department, New Hanover County Sheriff’s Office, and the United States Department of Homeland Security.
President of Ambulance Company Pleads Guilty to Perjury in Connection with False Health Care Claims InvestigationRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that today in federal court, JAIME LEONARD SMITH, 35, of Morehead City, North Carolina, pleaded guilty to Perjury.
According to the Criminal Information, SMITH was the president of CCMT, Inc., doing business as Crystal Coast Medical Transport (CCMT). CCMT was a nonemergency ambulance transportation company that operated in Craven and Carteret counties.
In 2012, CCMT and SMITH became the subject of investigation after a member of the public videotaped CCMT employees routinely transporting patients in CCMT ambulances when the patients had the ability to walk or ride in wheelchairs. Medicare and TRICARE generally do not cover nonemergency ambulance transportation services when the patient has the ability to walk or ride in a wheelchair. Additionally, for reimbursement to be covered by Medicare and TRICARE, the ambulance company must obtain an order, known as a Physician’s Certification Statement (PCS), from the patient’s physician indicating that the ambulance trip is medically required.
In October of 2013, the United State Attorney’s Office for the Eastern District of North Carolina (USAO-EDNC) issued Civil Investigative Demand (CID) upon CCMT, to the attention of SMITH. The CID required CCMT to produce to the government, “Any and all Physician Certification Statements on which you relied to provide ambulance transport to any beneficiary of a government healthcare program, including but not limited to Medicare, Medicaid, or TRICARE for the time period January 1, 2011 [to] the present.” In November of 2013, SMITH produced records and swore under oath that the records she produced were responsive to the CID.
In fact, the investigation revealed that in many instances, SMITH had altered the PCS forms to include additional markings that were not made by the patients’ physicians. In some instances, PCS forms were fabricated to cover dates of service for which no genuine PCS form existed. In other instances, the PCS forms were altered to include additional markings that were not made by the patient’s physician. For example, some PCS forms were altered to indicate that the ambulance transport was medically necessary, or to reflect that the patient had additional illnesses or medical conditions justifying the ambulance transport.
In no instance did the physicians authorize SMITH or any other agent of CCMT to fabricate or alter PCS forms for their patients.
At sentencing, SMITH faces up to 5 years in prison and 3 years of supervise release. The defendant also faces a fine of up to $250,000 and restitution if ordered by the court.
The investigation of this case was conducted by agents of the United States Department of Health and Human Services Office of the Inspector General, and the Defense Criminal Investigative Service. Assistant United States Attorney William M. Gilmore of the Economic Crimes Division represents the United States.
Army Captain Pleads Guilty to Gratuities ChargeRead the Press Release
A Colorado Springs, Colorado, man pleaded guilty today in federal court before U.S. District Judge Terrence W. Boyle of the Eastern District of North Carolina to solicitation and receipt of a gratuity, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina.
In connection with his plea, Captain David Anthony Kline, 32, admitted that while serving as a first lieutenant in the U.S. Army stationed at Kandahar Air Field (KAF) in Afghanistan, he sought and accepted $50,000 in gratuities from a contractor who was doing business with the U.S. military. Specifically, from January 2008 to April 2009, then-1st Lt. Kline was deployed to KAF where he oversaw the handling of transportation movement requests (TMRs) directing the transport of supplies from one location to another across Afghanistan. Although contracting procedures technically did not permit the authorizing officer to specify the particular Afghan trucking company that would perform the transportation, in practice, Kline and others were able to designate the Afghan company of their choice. Kline admitted that he sought and accepted $50,000 in U.S. currency from an Afghan national who owned a trucking company doing business on government contracts at KAF, in return for Kline’s facilitation of the award and payment of numerous transportation contracts.
The case was investigated by the Defense Criminal Investigation Service, Army Criminal Investigation Command, the Special Inspector General for Afghanistan Reconstruction and FBI. The case was prosecuted by Trial Attorney Wade Weems of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina.
Army Captain Pleads Guilty to Gratuities ChargeRead the Press Release
Raleigh – United States Attorney Thomas G. Walker announced that in federal court today, DAVID ANTHONY KLINE, 32, of Colorado Springs, Colorado, pled guilty before United States District Judge Terrence W. Boyle to solicitation and receipt of a gratuity and aiding and abetting the same, all in violation of Title 18, United States Code, Sections 201(c)(1)(B) and 2.
According to the Criminal Information filed on September 9, 2015, and information presented in open court, DAVID ANTHONY KLINE, while serving as a First Lieutenant in the United States Department of the Army and stationed at Kandahar Air Field, in Afghanistan, did seek and accept $50,000 in gratuities from a contractor doing business with the United States military. Specifically, from January 2008 to April 2009, then-Lieutenant KLINE was deployed to Kandahar Air Field (KAF), Afghanistan as a member of the 189th Combat Sustainment Support Battalion (189th CSSB), and he served as the Officer-in-Charge (OIC) of the Movement Control Team. The 189th CSSB is based at Fort Bragg and KLINE deployed to Afghanistan from Fort Bragg. KLINE has since been promoted to the rank of Captain.
As the OIC, KLINE oversaw the handling of Transportation Movement Requests, or TMRs, which are the means by which a military unit in the field submits a request for the transport of military items, to include fuel and equipment, food and other supplies, from one location to another across Afghanistan.
Although contracting procedures technically did not permit the authorizing officer to specify the particular Afghan trucking company that would perform the transportation, in practice, Kline and others were able to designate the Afghan company of their choice. KLINE admitted that he sought and accepted $50,000 in U.S. currency from an Afghan national who owned a trucking company doing business on government contracts at KAF, in return for KLINE’S facilitation of the award and payment of numerous transportation contracts.
Inspector General John Sopko of the Special Inspector General for Afghanistan Reconstruction (SIGAR) stated: "Stealing from the U.S. government undermines our mission in Afghanistan,
plain and simple. Not only did Captain Kline seek to defraud American taxpayers and abuse his position of authority as an officer, but he also put his fellow soldiers in harm's way by stealing vital resources that are needed for legitimate operations."
"As a First Lieutenant in the U.S. Army, David Kline had an obligation not only to conduct business in the best interest of his country, but also for those service men and women he was responsible for in Afghanistan. Anyone willing to misuse government resources for their own profit will be held accountable," said John Strong, Special Agent in Charge of the FBI in North Carolina.
"The Defense Criminal Investigative Service (DCIS) aggressively pursues those who tarnish the reputation of the U.S. Department of Defense abroad as our Warfighters serve honorably to accomplish our global missions," said DCIS Special Agent in Charge John F. Khin. "Corruption and theft in a combat environment degrade the effectiveness of the U.S. Armed Forces."
The case was investigated by the Defense Criminal Investigation Service (DCIS), Army Criminal Investigation Command (CID) Major Procurement Fraud Unit, the Office of the Special Inspector General for Afghanistan Reconstruction (SIGAR), and the Federal Bureau of Investigation (FBI). The case was prosecuted by Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina and Trial Attorney Wade Weems of the U.S. Department of Justice Criminal Division’s Fraud Section.
Wilson Man Sentenced for Drug TraffickingRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge James C. Fox sentenced THurman ray bohne, jr., 48, of Wilson, North Carolina to 162 months imprisonment, followed by 10 years of supervised release.
bohne was named in an Indictment filed on January 7, 2015 charging him with Conspiracy to Distribute and Possess With Intent to Distribute 5 Kilograms or more of Cocaine. On June 29, 2015, bohne pled guilty to that charge.
According to the investigation, BOHNE and his co-conspirators distributed over 13 kilograms of cocaine in the Wilson, North Carolina area from 2007 to 2012.
Investigation of this case was conducted by the Drug Enforcement Administration, the Wilson County Sheriff’s Office, the Wilson Police Department, and the Greenville Police Department. Assistant United States Attorney Lawrence J. Cameron represented the government.
Wendell Woman Sentenced for Tax FraudRead the Press Release
Raleigh – United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise Flanagan sentenced KIMBERLY NICOLE TORRES, 40, of Wendell, North Carolina to 52 months imprisonment; 3 years supervised release, and $104,624 restitution. On April 16, 2015, TORRES pled guilty to False, Fictitious and Fraudulent Claim for Refund. Evidence presented at TORRES’ plea and sentencing showed that TORRES used the identities of others, often without their knowledge, to prepare and file fraudulent tax returns.
U.S. Attorney Walker stated, “Our tax system relies on the honesty of tax payers with a heightened duty of honesty expected from professional tax preparers. Whenever someone like TORRES deliberately files false returns, the U.S. Attorney’s Office in support of the IRS will pursue the matter through the Courts as provided by our laws.”
The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation and United States Secret Service. Assistant United States Attorney David Bragdon handling the case on behalf of the government.
Trafficker Sentenced for Cocaine and Money Laundering ConspiracyRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flanagan sentenced RAUL PINEDA, 32, of Anaheim, California, to 89 months in prison and 5 years of supervised release for conspiracy to distribute and possess 5 kilograms or more of cocaine and conspiracy to launder monetary instruments. PINEDA previously pled guilty to these charges on May 13, 2014. FABIO HIROCHI INOUE, one of PINEDA’S co-conspirators, was sentenced to 51 months in prison and 5 years of supervised release for the same charges by Judge Flanagan on June 10, 2015.
The investigation revealed that between April 2013 and September 22, 2013, PINEDA sent INOUE, to Johnston County, North Carolina, to deliver cocaine and collect drug proceeds for a drug trafficking organization operating out of Mexico and California. INOUE made several trips during this time period to meet with cocaine traffickers in the Johnston County, N.C., area. During these trips INOUE delivered multiple kilograms of cocaine and collected drug proceeds. INOUE laundered some of the drug proceeds by depositing portions into a bank account in the name of a real estate business located in California. Based on the investigation, the United States Drug Enforcement Administration (DEA) discovered that INOUE would be flying to the Raleigh Durham International Airport with several kilograms of cocaine on September 22, 2013. Agents found INOUE at the airport and seized his luggage which contained 3,891 grams of cocaine. Agents arrested INOUE after seizing the cocaine.
On November 19, 2013, DEA learned that PINEDA traveled to Garner, N.C., to transport 2 kilograms of cocaine to the Johnston County traffickers. Agents located PINEDA after he exited a hotel in Garner to deliver the cocaine. Agents arrested PINEDA after locating 2 kilograms of cocaine in PINEDA’S backpack. In total, PINEDA was found to be responsible for trafficking 14.89 kilograms of cocaine and laundering drug proceeds totaling $170,985.
The investigation of this case was conducted by the United States Drug Enforcement Administration, the Johnston County Sheriff’s Office and the Internal Revenue Service-Criminal Investigation Division. 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 to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Statement Concerning Arrest of Superior Court Judge JonesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker confirms the arrest this morning of North Carolina Superior Court Judge Arnold Ogden Jones, II. A federal grand jury returned a three-count indictment yesterday charging Jones with Promising and Paying a Bribe to a Public Official, Promising and Paying a Gratuity to a Public Official, and Corruptly Attempting to Influence an Official Proceeding.
Jones is scheduled to make his initial appearance at 10:00 a.m. this morning before U.S. Magistrate Judge Robert T. Numbers in Raleigh. A copy of the indictment is attached.
Man Sentenced for Wilson PNC Bank RobberyRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced today in federal court, Senior United States District Judge James C. Fox sentenced PARIS CORDAVA WILLIAMS, 42, from the District of Columbia, to 108 months imprisonment followed by 3 years of supervised release. Additionally, he was fined $3,500 and ordered to pay $1,579 in restitution. On July 6, 2015 a federal jury convicted WILLIAMS and ROBERT EARL MAYS of bank robbery and aiding and abetting. WILLIAMS also was found guilty of possession of a firearm by a felon. Prior to trial, on June 29, 2015, a third defendant RICKY FRANKS pled guilty to bank robbery, aiding and abetting and felon in possession of a firearm. MAYS was sentenced to 125 months on September 29, 2015 and FRANKS is scheduled for sentencing for the November 30, 2015, term of court.
According to the investigation, WILLIAMS, MAYS and FRANKS were traveling in a car rented by FRANKS from the District of Columbia. On November 13, 2014, close to closing time, WILLIAMS and FRANKS entered the PNC Bank located at 3401 Raleigh Road Parkway in Wilson, North Carolina and robbed it. FRANKS vaulted the teller counter and took approximately $1,579.00 in United States currency from a teller’s drawer. When FRANKS grabbed the money, he also grabbed the GPS tracking device. FRANKS and WILLIAMS hid with the money and tracking device in the trunk of the rental car. MAYS drove the car a short distance away. The Wilson Police Department was alerted of the robbery and also notified that the moving tracking device became stationary on Raleigh Road. After a systematic search of cars in a stopped line of traffic near the bank, by Wilson Police Department officers, officers located WILLIAMS and FRANKS in the car’s trunk with the bag of money, GPS tracker and a firearm.
Investigation of this case was conducted by the Federal Bureau of Investigation, and the Wilson Police Department. The Bureau of Alcohol, Tobacco, Firearms, and Explosives also assisted. Assistant United States Attorneys S. Katherine Burnette and Carrie D. Randa represented the government.
Man Sentenced for Aiming Laser Pointer at an AircraftRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge James C. Fox sentenced CHRISTOPHER LEE FUNK, 35, of Concord, North Carolina to 5 years probation and 200 hours of community service.
FUNK was named in an indictment charging him with knowingly aiming the beam of a laser pointer at an aircraft in flight (a helicopter), in violation of the provisions of Title 18, United States Code, Section 39A. On May 11, 2015, FUNK pleaded guilty to this charge.
According to the investigation, on May 6, 2014, at the Cape Fear Regional Jetport in Oak Island, North Carolina, a student pilot and flight instructor was completing a nighttime cross country training flight in a helicopter. At approximately 12:10AM, as the student was attempting a practice landing as part of his training, the helicopter cockpit was struck with a green laser.
FUNK, who at the time was outside a residence near the airport, aimed the beam of a hand-held laser at the helicopter and maintained the beam on the cockpit as it descended from about 600 feet. When the laser hit the acrylic bubble windscreen, the beam refracted and lit up the cockpit with bright green light, making it very difficult to see both inside and outside the cockpit. The student was able to maintain control of the helicopter and land safely land on the runway.
The student needed to make another landing for his training, so to avoid the area where the laser appeared to originate, the instructor and student attempted to land further away, at the southern end of the runway. However, Funk again aimed the laser at the helicopter, striking the cockpit and blinding the student and instructor. The student was able to land safely, and the instructor immediately reported the incident to local law enforcement.
With the instructor’s assistance, officers with the Oak Island Police Department were able to determine the area within a residential neighborhood next to the airport where the laser originated. Officers approached the residence and encountered FUNK, and he admitted that he may have shined the laser at the helicopter. The laser device was seized by officers after it was turned over by another individual at the residence.
The case was investigated by the Oak Island Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Eric D. Goulian prosecuted the case for the government.
Goldsboro Man Sentenced to 120 Months for Drug and Firearm ChargesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, Senior United States District Judge W. Earl Britt sentenced SHAWNTANNA LEMARUS THOMPSON, 27, of Goldsboro, to 120 months imprisonment followed by 3 years of supervised release. On August 3, 2015, THOMPSON pleaded guilty to possession with intent to distribute a quantity of marijuana and to felon in possession of a firearm charges.
On August 8, 2014, a Goldsboro Police Officer responded to a call about a subject who was waving a gun in the air. Upon his arrival, the officer observed THOMPSON, who matched the subject’s description. Upon seeing the officer, THOMPSON quickly stood up and walked away. With his back to the officer, THOMPSON reached into his waistband and retrieved a revolver which he threw into nearby bushes. The officer located the revolver which was a loaded Smith & Wesson, .38 special revolver. The officer also recovered 11 grams of marijuana and 98 small baggies from THOMPSON’S person. Once at the jail facility, additional marijuana was located on THOMPSON.
On October 17, 2014, a Goldsboro Police Officer responded to a disturbance call in Goldsboro. As the officer approached the scene, he heard multiple gunshots and observed THOMPSON standing with his hand behind his back. As the officer passed, THOMPSON moved his hands to the front of his body and the officer noticed the butt of a handgun in THOMPSON’S hand. The officer exited his vehicle and ordered THOMPSON to stop and to show his hands. THOMPSON fled from the officer. The officer searched the path where THOMPSON was running and found a loaded Radom P35 9mm handgun which had the serial number scratched off.
Investigation of this case was conducted by the Goldsboro Police Department and by the Bureau of Alcohol Tobacco Firearms and Explosives. Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
Nearly 500 Hospitals Pay United States More Than $250 Million to Resolve False Claims Act Allegations Related to Implantation of Cardiac DevicesRead the Press Release
WASHINGTON – The Department of Justice has reached 70 settlements involving 457 hospitals in 43 states for more than $250 million related to cardiac devices that were implanted in Medicare patients in violation of Medicare coverage requirements, the Department of Justice announced today.
“While recognizing and respecting physician judgment, the department will hold accountable hospitals and health systems for procedures performed by physicians at their facilities that fail to comply with Medicare billing rules,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We are confident that the settlements announced today will lead to increased compliance and result in significant savings to the Medicare program while protecting patient health.”
An implantable cardioverter defibrillator, or ICD, is an electronic device that is implanted near and connected to the heart. It detects and treats chaotic, extremely fast, life-threatening heart rhythms, called fibrillations, by delivering a shock to the heart, restoring the heart’s normal rhythm. It is similar in function to an external defibrillator (often found in offices and other buildings) except that it is small enough to be implanted in a patient’s chest. Only patients with certain clinical characteristics and risk factors qualify for an ICD covered by Medicare.
Medicare coverage for the device, which costs approximately $25,000, is governed by a National Coverage Determination (NCD). The Centers for Medicare and Medicaid Services implemented the NCD based on clinical trials and the guidance and testimony of cardiologists and other health care providers, professional cardiology societies, cardiac device manufacturers and patient advocates. The NCD provides that ICDs generally should not be implanted in patients who have recently suffered a heart attack or recently had heart bypass surgery or angioplasty. The medical purpose of a waiting period -40 days for a heart attack and 90 days for bypass/angioplasty - is to give the heart an opportunity to improve function on its own to the point that an ICD may not be necessary. The NCD expressly prohibits implantation of ICDs during these waiting periods, with certain exceptions. The Department of Justice alleged that from 2003 to 2010, each of the settling hospitals implanted ICDs during the periods prohibited by the NCD.
“The settlements announced today demonstrate the Department of Justice’s commitment to protect Medicare dollars and federal health benefits,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “Guided by a panel of leading cardiologists and the review of thousands of patients’ charts, the extensive investigation behind the settlements was heavily influenced by evidence-based medicine. In terms of the number of defendants, this is one of the largest whistleblower lawsuits in the United States and represents one of this office’s most significant recoveries to date. Our office will continue to vigilantly protect the Medicare program from potential false billing claims.”
“Working as a team with the Department of Justice to investigate and settle false billing claims of this magnitude has resulted in substantial recoveries to Medicare and the successful enforcement of Medicare’s coverage requirements for these procedures,” said Inspector General Daniel Levinson of the Department of Health and Human Services’ Office of Inspector General (HHS-OIG).
The 70 settlements, representing nearly 500 hospitals, are listed on the attached chart. Most of the settling defendants were named in a qui tam, or whistleblower, lawsuit brought under the False Claims Act, which permits private citizens to bring lawsuits on behalf of the United States and receive a portion of the proceeds of any settlement or judgment awarded against a defendant. The lawsuit was filed in federal district court in the Southern District of Florida by Leatrice Ford Richards, a cardiac nurse, and Thomas Schuhmann, a health care reimbursement consultant. The whistleblowers have received more than $38 million from the settlements. The Department of Justice is continuing to investigate additional hospitals and health systems.
The settlements were the result of a coordinated effort among the U.S. Attorney’s Office of the Southern District of Florida, the Civil Division’s Commercial Litigation Branch and HHS-OIG, Office of Investigations and Office of Counsel to the Inspector General.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $26.2 billion through False Claims Act cases, with more than $16.4 billion of that amount recovered in cases involving fraud against federal health care programs.
The claims resolved by these settlements are allegations only and there has been no determination of liability.
Elm City Man Sentenced to 17 Years for Drug Trafficking & Weapon OffensesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced TERRANCE LAMAR CARR, a/k/a Lil Bud, 23, of Elm City, North Carolina to 204 months imprisonment, followed by 5 years of supervised release.
CARR was named in a three-count Indictment filed on March 24, 2015 charging him with conspiracy to distribute and possess with the intent to distribute 280 grams or more of cocaine base (crack); possession with the intent to distribute a quantity of marijuana and a quantity of cocaine base (crack); and possession of a firearm in furtherance of a drug trafficking crime.
On June 2, 2015, CARR pleaded guilty to conspiracy to distribute and possess with the intent to distribute 280 grams or more of cocaine base (crack) and possession of a firearm in furtherance of a drug trafficking crime.
CARR was associated with a narcotics distribution organization led by Tavaris Delino Battle, previously sentenced to life imprisonment. According to the investigation, CARR was involved with drug trafficking in Wilson, Edgecombe, and Nash counties from 2008 until his federal arrest on March 27, 2015. Throughout the investigation, a number of controlled purchases from CARR were conducted. Additionally, a number of traffic stops were affected on CARR during the investigation, which resulted in the seizure of controlled substances and large quantities of U.S. currency. Based on the investigation, CARR is accountable for the distribution of over 730 grams of cocaine base (crack). CARR also possessed and distributed powder cocaine and marijuana throughout the conspiracy. CARR possessed a firearm, which had a scratched serial number, in furtherance of his drug trafficking activities.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Rocky Mount Police Department, Sharpsburg Police Department, Edgecombe County Sheriff’s Office, Nash County Sheriff’s Office, Wilson County Sheriff’s Office, and Wilson Police Department. Assistant United States Attorney Dena J. King represented the government.
Rocky Mount Man Found Guilty of Heroin Trafficking ChargesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today that a jury convicted WILLIAM ELDRIDGE ASKEW, III, of Rocky Mount, North Carolina, of conspiracy to possess with intent to distribute 100 grams or more of heroin and aiding and abetting the possession with intent to distribute heroin. The jury returned its verdict following a trial in federal court before United States Chief District Judge James C. Dever, III.
Following an investigation into suspected heroin trafficking organizations in Rocky Mount, North Carolina; law enforcement agents learned that ASKEW and a co-defendant, MUTAR ALI BROCK, would be transporting 100 grams or more of heroin into the City of Rocky Mount from Detroit, Michigan for distribution in and around Rocky Mount and Wilson, North Carolina. Rocky Mount Police intercepted the vehicle as it entered Rocky Mount. ASKEW was driving the vehicle when it was stopped by law enforcement personnel. A search of the vehicle led to the seizure of heroin, marijuana and drug paraphernalia.
BROCK previously pled guilty to conspiracy to distribute and possess with the intent to distribute heroin. At sentencing, ASKEW faces a minimum of five years and up to forty years imprisonment.
The investigation and arrests were handled by the Rocky Mount Police Department with the assistance of the United States Drug Enforcement Administration and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. The North Carolina Bureau of Investigations, Forensics Lab provided forensic assistance. Assistant U.S. Attorney Edward Gray and Special Assistant U.S. Attorney Patrick Weede represented the government.
Former Navy Range Manager Pleads Guilty to Accepting Illegal GratuitiesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, before Chief United States District Judge James C. Dever III, HARRY C. MANN, age 79, of Manns Harbor, North Carolina, pleaded guilty to accepting illegal gratuities while employed by the U.S. Department of Navy at the Dare County Bombing Range. The charge carries a maximum penalty of two years’ imprisonment, a fine of $250,000 or twice the gain to the defendant, restitution, one year supervised release, and a $100 special assessment.
According to the United States Attorney’s factual proffer, Mann, had been employed by the Navy at the range southwest of Manteo, since 1968. The range provides air warfare training support to the Navy and the Marine Corps. Aviators practice dropping inert bombs and firing live rounds of ammunition at practice targets. As range manager, Mann’s official duties included constructing and maintaining the targets. Between January 2005 and May 2011, Mann requisitioned approximately 16 million dollars in excess government property, which included many types of functional heavy equipment, like trucks, excavators, bulldozers, cranes, trailers, and metal connex boxes. He obtained the property from the Defense Reutilization and Marketing Office (DRMO), which was created by the Department of Defense to centralize the disposal of excess property for better accountability and to reutilize military property within the Department of Defense. If the Department of Defense no longer has use for the property, excess material may be used for emergency management in the United States and humanitarian aid worldwide. The Department of Defense could also sell excess property to the public.
Mann, however, without proper authorization, sold DRMO acquired property to local metal scrappers. These men paid Mann a percentage of the proceeds they received for scrapping numerous pieces of heavy equipment and aluminum expedition runway matting. In total, these men state they paid Mann approximately $175,000 in kickbacks. Mann, according to the government’s proffer, demanded that these men pay him in cash when they were alone so others could not witness the payments. One such cash payment of $16,300 was paid to Mann at his residence on May 18, 2011. Mann told the local scrapper to put the envelope of cash in a flower pot. These men, Rudy Lozano and John Williams, previously pleaded guilty to Theft of Government Property.
Chief Judge Dever scheduled sentencing for the Court’s January 25, 2016 term of court.
"One of DLA OIG's missions is to investigate and support the prosecution of crimes relating to fraud, waste and abuse of Department of Defense property," said Jerry Unruh, DLA's deputy inspector general. "It is essential that we hold government employees accountable for using their positions of trust for their own personal gain at the expense of the US Treasury."
"Corrupt Department of Defense employees who enrich themselves at the expense of American taxpayers are reprehensible," said John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service. "DCIS' top priority is to root out fraud and corruption affecting the DOD, and bring these violators to justice."
The investigation of this case was jointly conducted by the Navy Criminal Investigative Service, the Department of Defense Investigative Service, and the Defense Logistics Agency (DLA), Office of the Inspector General. The Navy was first alerted of the criminal activity by inspectors from the North Carolina Department of Motor Vehicles after witnessing the transportation of heavy pieces of equipment in the Edenton area. Assistant United States Attorneys Felice M. Corpening and Susan B. Menzer represented the government.
Rocky Mount Man Sentenced for Drug TraffickingRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that on Friday, October 23, 2015 in federal court, Chief United States District Judge James C. Dever III sentenced Benjamine fitzgerald ransome, 42, of Rocky Mount, North Carolina to 45 months imprisonment, followed by 3 years of supervised release.
ransome was named in an Indictment filed on March 3, 2015 charging him with distribution of a quantity of cocaine base (crack); possession with intent to distribute a quantity of cocaine; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a felon. On July 13, 2015, Ransome pleaded guilty to possession with intent to distribute a quantity of cocaine.
According to the investigation, RANSOME distributed marijuana, cocaine, and cocaine base (crack) in Rocky Mount, North Carolina from 2012, until April 24, 2014. Law enforcement utilized a confidential informant to conduct controlled purchases of narcotics from RANSOME at B&R Auto Sales in Rocky Mount, North Carolina where RANSOME worked as a car salesman. Law enforcement executed a search warrant at B&R Auto Sales where they seized marijuana, a shotgun, and drug paraphernalia. A search warrant was also executed at RANSOME’s home, which uncovered cocaine, marijuana, a .38 caliber revolver, and drug paraphernalia.
The case was investigated by the Nash County Sheriff’s Office, Edgecombe County Sheriff’s Office, and the Drug Enforcement Administration. Assistant United States Attorney Dena J. King represented the government.
Virginia Man Sentenced for Firearm Offense in North CarolinaRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, Chief United States District Judge James C. Dever III sentenced WILLIAM JACKSON HARVEY, JR, 53, of Virginia, to 96 months imprisonment to run concurrent with his term of imprisonment previously imposed by the State of Virginia. He was convicted by the State of Virginia for grand larceny and nonviolent felon in possession of a firearm within 10 years.
On March 23, 2015 HARVEY pleaded guilty to the federal charge of possession of a stolen firearm on July 4, 2013.
According to the investigation, on July 18, 2013, a report of stolen firearms was made by the store clerk of People’s Pawn Shop in Kinston when two guns were sold to them. The store clerk advised officers that WILLIAM JACKSON HARVEY, JR. sold a New England .223 rifle and a .22 revolver, to the shop claiming that the guns were his father’s firearms. The firearms were reported stolen along with a third gun, a Taurus .38 revolver, and a 2012 Ford F-250 on July 4, 2013 out of Hanover County, Virginia. On July 23, 2013, HARVEY was arrested in Richmond, Virginia by the U.S. Marshals Service. The truck and one of the three firearms were not recovered.
Investigation of this case was conducted by the Lenoir County Sheriff’s Office, Kinston Police Department and the Bureau of Alcohol Tobacco Firearms and Explosives. Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
United States Attorney’s Office Employees Receive Prestigous Anti-Defamation League AwardRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that the Anti-Defamation League (ADL), one of the Nation’s premier civil rights agencies, awarded the Raleigh-Durham Joint Terrorism Task Force and a federal prosecutor at the U.S. Attorney’s Office in Raleigh, the 2015 ADL Service, Honor, Integrity, Excellence, Leadership, and Dedication (SHIELD) Award for the investigation and prosecution of Erwin Antonio Rios. The award ceremony took place on October 13, 2015 in Washington, D.C. Rios intended to commit violent acts against innocent people in furtherance of this extremist doctrine of hate. He planned to wage violent jihad overseas and in the United States.
“This award encapsulates the idea that shared missions, attitudes, and dedication by prosecutors and investigative teams are harbingers of success, and most certainly worthy of recognition,” says USA Walker. “We are honored by this prestigious recognition.”
The National Security Section of the U.S. Attorney’s Office handled this case and in this instance specifically included the efforts of Assistant U.S. Attorney Jason Kellhofer and Intelligence Research Specialist Sarah Foster.
At the ceremony the ADL honored law enforcement heroes who have protected our nation and communities from hate crimes and terrorist threats. The SHIELD award was created in 2010 to annually honor law enforcement for major successes in the fight against hate crimes and domestic and international terrorism. The Award’s name reflects law enforcement’s role as protectors, and is also an acronym for the core values of the profession: Service, Honor, Integrity, Excellence, Leadership, and Dedication.
Kellhofer and Foster, along with many other federal and local law enforcement agents, analysts, and attorneys assisted in the investigation of the case. The award was given for their dedication and extraordinary competence in the investigation and successful prosecution of Erwin Antonio Rios of Fayetteville, North Carolina.
Rios is a self-proclaimed adherent to the extremist views propogated by extremist terrorist groups. Rios desired to travel overseas in order to further what he termed “jihad” and expressly defined as various forms of violence against those he determined to be non-believers – to include U.S. forces. In order to obtain the funds necessary for such travel, Rios devised a scheme to commit violent robberies within North Carolina. He intended to leave no witnesses alive in order to better secure success. As an initial step, Rios sought out a firearm and expressed willingness to purchase a stolen hand gun. The FBI subsequently provided Rios with the opportunity to purchase a purportedly stolen hand gun through a confidential informant. On February 7, 2013, Rios eagerly provided the funds for purchase of a weapon he believed to be stolen and was immediately taken into custody. Rios subsequently plead guilty to knowing possession of a stolen firearm in violation of 18 U.S.C. § 922(j) and to having sought to accomplish the crime in order to further terrorist activity. On October 8, 2013, in the Eastern District of North Carolina, Senior District Judge Howard sentenced Erwin Antonio Rios to ten years’ imprisonment followed by three years of supervised release.