Eastern District of North Carolina
Press releases recorded for this federal judicial district.
Oxford Man Sentenced to 146 Months for Hobbs Act Robbery and Firearm ChargeRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced SHAQUAN DONDREL MANSON , 19, of Oxford to 146 months imprisonment, followed by 5 years of supervised release. The court also imposed a fine.
MANSON was named in an Indictment filed on January 21, 2014, charging him with Conspiracy to commit a Hobbs Act Robbery, a Hobbs Act Robbery and Aiding and Abetting; and Using, Carrying, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence. On July 10, 2014, MANSON pled guilty to the Hobbs Act Robbery and to Carrying, Brandishing, and Discharging a Firearm during and in relation to a Crime of Violence.
According to the investigation, on July 7, 2013, MANSON and an accomplice entered Bowen’s Mini Mart located in Oxford, North Carolina, wearing ski masks and possessing handguns. Upon entering the store, the robbers ordered the customers and the store clerk to lie on the ground. One customer was kicked in the side. Manson then walked behind the counter, pointed his firearm at the clerk’s head, and ordered her to stand up and open the cash registers. The clerk complied, and provided MANSON with $2,500 in U.S. currency. MANSON then directed the clerk to lie on the ground with the customers. MANSON and his accomplice then fled the scene. After MANSON exited the store, he fired his weapon once towards the store. The discharged round struck the front door of the business.
On or about August 10, 2013, MANSON was arrested in Person County, North Carolina. MANSON had in his possession, at arrest, a backpack containing ski masks and gloves, and a firearm in his pants. In a subsequent interview with investigators, MANSON admitted to robbing Bowen’s Mini Mart and to possessing a firearm during the robbery.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Granville County Sheriff’s Office. Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
Attorney and Real Estate Developers Sentenced in Wilmington-area Mortgage Fraud CaseRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announces that today Senior United States District Judge Malcolm J. Howard sentenced numerous participants in a Wilmington area mortgage fraud scheme to prison. Senior Judge Howard also collectively ordered more than $1 Million in restitution judgments against the defendants. Those sentenced by the Court included a real estate closing attorney, two developers, and another conspirator.
United States Attorney Thomas G. Walker stated, “This is the second time within a month that courts of this district have sent attorneys and other real estate professionals to prison for mortgage fraud. Through these and other prosecutions the message should be absolutely clear. If you commit mortgage fraud, you will face time in prison.”
“Mortgage fraud is an incredibly destructive crime, where borrowers are burdened with bad loans, lenders incur significant losses, and neighborhoods are often destroyed through abandoned homes and rapidly declining property values” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation, “Today’s sentencing of these defendants, delivers the message that we along with our law enforcement partners will not stand by idly while criminals enrich themselves, through victimizing others.”
The sentencings in Greenville today involved four participants in the Wilmington-area mortgage fraud scheme, including developer JUSTIN LEE ROOKS, 33, of Loris, South Carolina; developer MICHAEL THOMAS BARTLETT, 48, of Myrtle Beach, South Carolina; closing attorney ROBERT HAROLD MELVILLE, JR., 52, of Lake Waccamaw; and HOWARD MICHAEL TEW, 33, of Conway, South Carolina. On December 11, 2012, ROOKS and BARTLETT pled guilty to Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 1349. MELVILLE pled guilty to Conspiracy to Commit Bank and Wire Fraud, in violation of Title 18, United States Code, Section 1349.
The charging documents in these cases collectively allege that between May of 2004 and August of 2008, ROOKS, BARTLETT, and others conspired to defraud banks and lenders in connection with the purchase, development, and resale of properties in Columbus, Brunswick, and New Hanover counties. It is further alleged that the conspirators solicited individuals at seminars in Raleigh and elsewhere to allow construction loans to be obtained in their names for the benefit of the conspirators in exchange for cash. The conspirators told the buyers that the buyers would not have to make a down payment or interest payments on the loans, and that the properties purchased in their names would be sold within twelve months. TEW and other conspirators also posted signs which included such representations as, “easy financing” and “no down payment required,” even though the buyer/borrowers were generally required to make down payments at the time of the closings. The buyers were told that if properties could not be sold in twelve months, the conspirators would buy the properties back.
The conspirators in fact enticed the buyers to participate in the transactions and engaged in various actions to make it appear to the banks and lenders that the buyers were qualified for the loans. The charges allege that TEW and other conspirators deposited money into the bank accounts of the buyers to make it appear that they had sufficient assets to conduct the transactions. To close the loans, the conspirators also referred the buyers to MELVILLE, who was at that time a North Carolina attorney who practiced real estate law. MELVILLE participated in the conspiracy by engaging in actions that made it appear to the banks and lenders that the buyers had given down payment money at the time of closing when, in fact, the buyers did not bring such money.
The banks and lenders who loaned funds to the buyers were not informed of the cash kickbacks to the buyers by the conspirators. The banks and lenders were also not informed that the buyers did not in fact have the cash to close the transactions, and that the down payment money, if any, was provided by the conspirators.
Ultimately, according to the charging documents, the conspirators were unable to sell many of the properties purchased in the names of the buyers. The buyers did not have the means to repay all of the loans obtained in the names of the buyers and, as a result, many of the loans went into default. The banks and lenders were forced to sell the properties at a substantial loss.
Today, Senior District Judge Howard sentenced MELVILLE to serve 31 months in prison, 3 years of supervised release, and further ordered MELVILLE to pay $1,333,020.00 in restitution.
Senior Judge Howard sentenced ROOKS to serve 30 months in prison, 5 years of supervised release, and further ordered ROOKS to pay $1,766,511.00 in restitution.Senior Judge Howard sentenced BARTLETT to serve 24 months in prison, 5 years of supervised release, and further ordered BARTLETT to pay $1,333,020.00 in restitution.
Senior Judge Howard sentenced TEW to serve 18 months in prison, 3 years of supervised release, and further ordered TEW to pay $883,420.00 in restitution.
Investigation of this case was conducted by the Internal Revenue Service Criminal Investigation with the assistance of the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore represented the United States.
Greenville Men Sentenced for Robbery of Family Dollar StoreRead 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 JUSTIN COLLINS MITCHELL, 3O,of Greenville, North Carolina, to 78 months in prison and 3 years of supervised released for aiding and abetting the robbery of a business engaged in interstate commerce. MITCHELL previously pled guilty to this charge on August, 4, 2014. Chief Judge Dever previously sentenced MITCHELL’S codefendants, CHRISTOPHER MICHAEL HARDY, 26,and MELVIN TERRELL TURNER, 24,both of Greenville, North Carolina.
On October 15, 2014, HARDY received a 30 month prison sentence for the robbery charge and an 84 month prison sentence to run consecutively for the charge of using, carrying and brandishing a firearm during and in relation to a crime of violence for total sentence of 114 months. Once HARDY is released from the Bureau of Prisons, he will be supervised for a term of 5 years.
On September 18, 2014, TURNER received a 21 month prison sentence for aiding and abetting the robbery and will be supervised for a period of 3 years upon his release from the Bureau of Prisons.
On February 20, 2013, at 9:55 pm, two masked men, including HARDY, robbed a Family Dollar Store on Memorial Drive in Greenville, N.C. of $2,299.73. HARDY possessed a semi-automatic handgun and pointed it at an assistant manager. HARDY and the second masked man ordered the assistant manager to open the store’s register and safe. The investigation revealed that MITCHELL and HARDY solicited TURNER, an employee of the store, to assist in the robbery. TURNER provided information to MITCHELL and HARDY that they used to plan and execute the robbery. There was insufficient evidence to charge the second masked man.
The investigation of this case was conducted by the Federal Bureau of Investigation and the Greenville Police Department. 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.
Fayetteville Man Who Threatened Wife Sentenced to 84 Months for Possession of A Fiream by A FelonRead 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 GLENN SYLVESTER JACKSON , 29, of Fayetteville to 84 months imprisonment, followed by 3 years of supervised release.
JACKSON was named in a one count Indictment filed on September 17, 2013, charging him with Possession of a Firearm by a Felon. On June 17, 2014, JACKSON pled guilty to the charge.
According to the investigation, on April 12, 2013, deputies with the Cumberland County Sheriff’s Office (CCSO) in Fayetteville, North Carolina, responded to a report of a domestic disturbance in a vehicle. Specifically, JACKSON and his wife were engaged in a verbal argument when JACKSON retrieved a loaded firearm and placed it against his wife’s head before ultimately exiting and punching the vehicle. When approached by CCSO deputies, JACKSON ran from the officers prior to being apprehended. A search of the defendant revealed a loaded firearm. JACKSON is a felon who is prohibited from possessing firearms.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Cumberland County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
Three Face Federal Charges in A Military Procurement Fraud Scheme Involving Helicopters That Support the PresidentRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announces that a federal grand jury in Raleigh, North Carolina returned a 5 count indictment charging CRAIG KOLHAGEN, DENNIS PENNINGTON, and JAMES BOWLING with conspiracy to commit wire fraud, wire fraud, major fraud against the government, and procurement fraud.
The Grand Jury charges that, from 2011 until December 2013, KOLHAGEN, PENNINGTON, and BOWLING engaged in a conspiracy to defraud the United States in connection with a bid proposal for a contract to perform maintenance work on helicopters in Marine Helicopter Squadron One (HMX-1). The HMX-1 squadron is tasked with providing helicopter transport to the President of the United States, among other duties.
KOLHAGEN, who is a Chief Warrant Officer in the United States Marine Corps, had been the Contracting Officer’s Representative for the HMX-1 squadron. BOWLING and PENNINGTON are retired Marine Corps senior non-commissioned officers, who served as helicopter mechanics during their military careers. Currently, PENNINGTON is Chief Executive Officer and BOWLING is President of Valour, LLC, a Louisiana-based defense contractor engaged in the business of helicopter repair for the military.
The Indictment alleges that KOLHAGEN illegally leaked confidential information regarding the cost of a proposed contract for the maintenance of HMX-1 helicopters. In turn, PENNINGTON and BOWLING unlawfully colluded with KOLHAGEN to artificially inflate the cost estimate of the bid proposal, and to draft the proposed contract’s statement of work and technical requirements in a way to favor Valour over other potential bidders, according to the indictment.
Mr. Walker remarked, “This investigation highlights the unwavering determination of the Department of Justice to root out corruption in the military contracting process and to safeguard taxpayer dollars.”
"We are committed to protecting Navy and USMC personnel and materiel assets, extending to ethical and equitable contracting practices" stated Andrew Traver, Director of the Naval Criminal Investigative Service.These comments were underscored by Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service, who said, “DCIS remains committed to working with its law enforcement partners to investigate individuals who attempt to manipulate the procurement process for their own gain.”
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 Naval Criminal Investigative Service (NCIS) and the Defense Criminal Investigative Service (DCIS). Assistant United States Attorney Evan Rikhye is prosecuting the case for the government.
Wilmington Man Sentenced for Making Unregistered Destructive DevicesRead 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 ERIK RUDOLPH ARNEBOLD, 38, of Wilmington, to 64 months imprisonment followed by 3 years of supervised release. On August 4, 2014, ARNEBOLD pled guilty to one count of making 24 unregistered destructive devices (bombs) in violation of Title 26, United States Code, Sections 5861(f) and 5871.
ARNEBOLD was named in an Indictment filed on June 4, 2014. On October 29, 2013, members of the Wilmington Police Department (WPD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) executed a search warrant at ARNEBOLD’s residence in Wilmington based on information of possible bomb-making at the residence.
On October 30, 2013, law enforcement officials conducted a search of ARNEBOLD’S residence, resulting in the seizure of 24 improvised explosive devices (IEDs), bomb-making materials, two firearms including a Mak-90 assault rifle, ammunition, brass knuckles, and two ballistic vests.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives and the Wilmington Police Department. Assistant United States Attorney Eric D. Goulian prosecuted the case.
North Carolina Man Sentenced for Killing U.S. Marshals Task Force OfficerRead the Press Release
WASHINGTON – Lamont Deshawn Byrd was sentenced today in federal court in Raleigh, North Carolina, to serve life in prison for committing first degree murder of an Officer of the United States, announced U.S. Attorney Thomas G. Walker for the Eastern District of North Carolina. Byrd, 22, pleaded guilty on Aug. 4, 2014, to killing Warren Basco “Sneak” Lewis III with premeditation and malice on June 9, 2011. Lewis was an investigator with the Nash County Sheriff’s Office who was also a sworn special deputy United States marshal assigned to the Eastern North Carolina Regional Fugitive Task Force.
The investigation began on June 2, 2011, in Kinston, North Carolina when officers responded to a shots fired call and found homicide victim Thomas Terrell Hinton fatally shot in the chest. The investigation determined that Byrd, Kion Tyearl Dail and two additional juveniles murdered Mr. Hinton and then stole his bicycle. Murder warrants were issued for the arrest of the aforementioned individuals and law enforcement began looking for the suspects.
On June 9, 2011, Kinston officers, along with U.S. Deputy Marshals attempted to locate the suspects utilizing warrants and executed a search warrant at 602-A West Lenoir Avenue, Kinston, North Carolina. This address is a residence which has been converted into three separate apartments; one upstairs and two downstairs. Although it appeared that 602-A had been inhabited, the apartment was now empty. However, two shotguns were located. Laboratory testing revealed that Byrd had possessed the weapons. Earlier Byrd and several others had moved to Apt B downstairs.
Later that day, after developing additional information, law enforcement officers went back to the Lenoir Avenue apartments. While searching for the suspects, law enforcement officers announced their presence. As Investigator Lewis was coming down the stairs from the upstairs apartment, Byrd shot three times through the closed door, striking the deputy all three times. After realizing he had shot an officer, Byrd was heard to utter, “See what you made me do?” Byrd then handed the weapon to another individual to hide. After a 20-minute stand-off, the individuals came out. The weapon, a Berretta .40 caliber semi-automatic pistol, was found in a banker’s box in a closet, with Byrd’s DNA on it. The weapon had been stolen from a residence three weeks prior.
Investigator Lewis was transported to the hospital where he later died from his injuries.
“The death of Special Deputy Lewis is a tragedy for his family and all of us in the law enforcement community,” said U.S. Attorney Walker;
“As a key member of the Eastern North Carolina Regional Fugitive Task Force, Special Deputy U. S. Marshal Warren Lewis was a vital part of the U. S. Marshals’ family, just as he was with the Nash County Sheriff’s Office,” said Director Stacia Hylton of the U.S. Marshals Service. “Warren Lewis will always be remembered to us and the entire law enforcement community as a hero and for making the ultimate sacrifice to protect others. We hope that with this sentencing that Warren Lewis’ family can start to feel a small level of peace and closure after suffering their tragic loss.”
“Today’s sentencing is the result of a tragedy and loss of human life that was not necessary,” said ATF Special Agent in Charge Wayne Dixie. “Anyone that uses a firearm to commit a violent criminal act, especially the murder of a law enforcement officer, will be held accountable for their actions. We will continue to use all of our resources to prosecute those that choose to commit this type of heinous act.”
“Law enforcement officers put their lives on the line every day to protect our communities, and they deserve our respect and gratitude,” said North Carolina Attorney General Roy Cooper. “The death of Investigator Lewis was a tremendous loss to his family and our community and the end of this case helps bring justice.”
“The Lewis family and the State of North Carolina lost a true hero,” said Director Bill Johnson of the Kinston Department of Public Safety. “I wish to thank the many individuals and agencies for their assistance in the effort to see justice done.”
According to the plea agreement, Byrd has also pleaded guilty to murder charges in state court and is awaiting sentencing.
The investigation was conducted by the North Carolina State Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Kinston Department of Public Safety.
The prosecution is being handled by Assistant U.S. Attorney Jane J. Jackson and Imelda J. Pate, Assistant District Attorney for the Eighth District.
Fayetteville Man Sentenced for Narcotics Distribution and Weapons ChargesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced today that MARCUS DORRELL BYRD, 42, of Fayetteville, North Carolina, was sentenced to life plus 25 years followed by 10 years of supervised release. A federal jury convicted BYRD on all 5 counts contained in a criminal indictment on August 7, 2014. Charges consisted of drug and firearms offenses including conspiracy to distribute in excess of 5 kilograms of cocaine, distribution of cocaine, possession of a firearm during a drug trafficking crime, and possession of a firearm by a convicted felon.
During the four day trial, the government presented evidence that between on or about 2009, through on or about June 24, 2011, BYRD conspiredwith others in the Fayetteville area to distribute in excess of 30 kilograms of cocaine. Further, evidence was also presented of several controlled sales of cocaine by the defendant to a confidential informant. During a search of BYRD’s apartment by law enforcement, officers found him in possession of a loaded 9mm handgun, over $15,000 in US currency, a cocaine press, and several digital scales. BRYD’s prior convictions enhanced his sentence today. He was previously convicted of instigating a riot at the Federal Correctional Institution in Talladega, Alabama in 1995. He also has prior drug and firearms convictions.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fayetteville Police Department. Assistant United States Attorneys Ethan A. Ontjes and Carrie Randa prosecuted the case for the government.
Cary Man Sentenced for Videotaping Sex with Step-daughterRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today IKE SIMMONS, 39, of Cary, North Carolina, was sentenced by Senior United States District Judge W. Earl Britt to 600 months imprisonment followed by 20 years of supervised release. On June 2, 2014, SIMMONS pled guilty to manufacturing child pornography, in violation of Title 18, United States Code, Sections 2252(a) and (d).
According to the investigation, in July, 2013, the mother of the victim contacted law enforcement reporting that her ex-husband had been molesting her 16-year-old daughter since 2009. SIMMONS was arrested and three computer hard drives, along with his Iphone was seized. Computer forensics later performed on the hard drive revealed that SIMMONS had videotaped the molestation using his cellphone and then transferred the videos to the hard drives.
SIMMONS is a previously convicted sex offender stemming from a 2003 conviction.
The criminal investigation of this case was conducted by the Cary Police Department, the Apex Police Department, and the Fayetteville 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.
Raleigh Attorney, Developers, Brokers, and Recruiters Sentenced to Prison for Expansive Mortgage Fraud SchemeRead the Press Release
RALEIGH – The United States Attorney’s Office announced that on Monday, October 27, 2014, and Tuesday, October 28, 2014, Chief United States District Judge James C. Dever, III sentenced numerous participants in an expansive mortgage fraud scheme to prison. Chief Judge Dever also collectively ordered more than $10 million in forfeiture and restitution judgments against the defendants. Those sentenced by the Court included multiple real estate developers, a closing attorney, two mortgage brokers, and a real estate broker.
“Mortgage fraud impacts the financial stability of our country’s housing markets. These individuals manipulated programs that make it possible for others to live the American dream of owning their own homes. The FBI and our law enforcement partners will expose these type of complex fraud schemes and ensure those responsible are held accountable for their crimes,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
“The Federal Deposit Insurance Corporation - Office of Inspector General is committed to its partnerships with others in the law enforcement community as we address mortgage fraud cases throughout the country. The American people need to be assured that their government is working to ensure integrity in the financial services and housing industries and that those involved in criminal activities that undermine that integrity will be held accountable,” commented the Federal Deposit Insurance Corporation Inspector General Jon T. Rymer.
“We recognize the negative impact that mortgage fraud has on our economy and on our communities. With actions like those announced today, a very clear message is sent: if you don’t operate within the boundaries of the law, we will not hesitate to act. We will continue to work with our law enforcement partners to ensure the US Mail is safe and not used to further schemes like this”, said Inspector in Charge Keith Fixel, US Postal Inspection Service.
"The Federal Deposit Insurance Corporation (FDIC) Office of Inspector General is pleased to join the U.S. Attorney's Office and our law enforcement partners in announcing these sentencings. The numerous subjects involved in these fraudulent schemes are now facing the reality that those who cause harm to FDIC-insured institutions and undermine the integrity of the Nation's housing industry will be held accountable."
Nadine E. Gurley, Special Agent in Charge for the U. S. Department of Housing and Urban Development, Office of Inspector General said, “HUD's Office of Inspector General is dedicated to protecting HUD from individuals seeking to defraud the Federal Housing Administration (FHA) insurance fund. The sentences announced today is a reminder to citizens that we will continue to investigate mortgage industry professionals who attempt to defraud our programs for their own personal enrichment. This partnership between the U.S. Attorney’s Office, HUD’s Office of Inspector General and law enforcement partners, has helped demonstrate to taxpayers that those who seek to unlawfully profit by defrauding HUD programs will be vigorously prosecuted.”
“This case clearly demonstrates the commitment of IRS Criminal Investigation to aggressively pursue individuals engaged in mortgage fraud in North Carolina,” said Special Agent in Charge Thomas J. Holloman III. “Mortgage fraud destroys neighborhoods and hurts innocent families. IRS Criminal Investigation is committed to combating mortgage fraud and other financial crimes to protect the American homeowner and the national economy.”
On Monday and Tuesday, Chief United States District Judge James C. Dever sentenced eight defendants in total who were tied to the mortgage fraud scheme. Those sentenced included former mortgage broker DEXTER TIRRELL JONES, 42 of Raleigh; developer RICKY LAMONT CONGLETON, 43, of Zebulon; closing attorney PHILLIP GRAHAM ROSE, 42 of Raleigh; developer and former mortgage broker VINCENT MALDINI, 46, of Seabright, New Jersey; developer JOHNNY RAY PEELE, 43, of Wake Forest; JOSEPH CARL HOLLIS, 35, of Raleigh; developer DWAYNE THOMAS HALL, 49, of Wake Forest, and former real estate broker, TRESHELL MAYO HERNDON, 39, of Raleigh. JONES, CONGLETON, ROSE, MALDINI, PEELE, HALL, and HERNDON, were each charged in a one-count criminal information with Conspiracy to Commit Bank and Wire Fraud in violation of Title 18, United States Code, Section 1349. HOLLIS was charged with Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371.
Summary of the Scheme
The investigation uncovered that between 2003 and 2009, CONGLETON, HERNDON, PEELE, HALL, MALDINI, JONES, HOLLIS, ROSE, and others known to the United States Attorney, were involved in a conspiracy to defraud numerous banks and lenders in the United States, collectively resulting in more than $44 million in fraudulent mortgage loan disbursements, and several million dollars in losses to victims.
The conspiracy further resulted in substantial losses to the United States Department of Housing and Urban Development (HUD) through its Federal Housing Administration (FHA) program.
The charging documents indicate that various developers in the scheme, including but not limited to CONGLETON, operating through Triple R Enterprises, LLC; HERNDON, operating through Herndon & Herndon Enterprises, LLC; HALL, operating through Dwayne T. Hall Builders; PEELE, operating through P.A.P’s Custom Home Builders, LLC and C and P Custom Homes, LLC; and MALDINI, operating through NY Construction, LLC, unlawfully profited from the sale of properties purchased or developed by the conspirators to individuals who did not have the financial means to purchase the properties, identified in the charging documents as “straw buyers”. To execute the scheme, CONGLETON, HERNDON, HALL, PEELE, MALDINI, and others involved in the scheme referred to as “Builders”, would cause entities owned or controlled by them to purchase and develop a property for quick resale. The builders caused individuals, referred to herein as “Intermediaries,” to locate individuals who were willing to allow their name and credit to be used to purchase properties from the Builders. The Intermediaries, including but not limited to HOLLIS, MALDINI and then mortgage broker, JONES, assisted the straw buyers to complete a loan application with a lender. For their services to the Builders, the conspirators paid the Intermediaries a kickback, or lump sum of cash, from the loan proceeds used by the straw buyers to purchase the properties from the Builders.
Conspirators enticed the straw buyers to participate in the scheme by making certain promises and representations including, but not limited to the following: (1) The straw buyers would be paid a sum of cash for purchasing the properties, (2)the straw buyers would not be required to make a down payment, (3) the straw buyers were told that the homes would be rented and the rental income would be used to pay the mortgage,(4) the straw buyers would not be required to make interest payments on the mortgage loans utilized to purchase the properties from the Builders.
CONGLETON, HERNDON, HALL, PEELE, MALDINI, and other Builders executed contracts to sell properties to the straw buyers for their appraised value, but set aside 15 to 20% of the sales price to use as the straw buyer’s down payment, and to pay kickbacks to the straw buyers and others participating in the scheme. The Builders further obtained and caused others to obtain cashier’s checks from accounts owned or controlled by the Builders to cover the down payment obligations of the straw buyers. The cashier’s checks were written to make it appear to lenders and banks that the straw buyers were providing the down payment funds when, in fact, such funds came from the Builders. These cashier’s checks were given to a closing attorney who handled the sale of the property from the Builder to the straw buyer.
Raleigh attorney PHILLIP GRAHAM ROSE served as the closing attorney on some, but not all, real estate transactions between Builders and straw buyers that were funded by banks and mortgage lenders in the scheme. In connection with the transactions involving the Builders and straw buyers, ROSE created and executed, and had the buyers and sellers execute, HUD-1 settlement statements that falsely indicated that the borrower brought cash to the closing when, in fact, as ROSE knew, the cash was provided by the Builders, including CONGLETON, HERNDON, HALL, PEELE, MALDINI, and others. ROSE and his staff transmitted the false HUD-1 settlement statements via mail and interstate wires to banks and mortgage lenders who relied upon them in funding the transactions. The Builders and straw buyers executed the HUD-1 settlement statements reflecting that the straw buyers were making the down payment on the properties, when in fact, the down payments were made by the Builders.
Because of the foregoing actions, banks and other lenders were deceived into disbursing loan proceeds to fund the purchase of the properties from CONGLETON, HERNDON, HALL, PEELE, MALDINI, and other Builders. The banks and lenders issued loans they either would not otherwise have made, or issued loans on terms they would not otherwise have authorized, had the Builders and others not concealed the true terms of the transactions, the actual qualifications and intentions of the straw buyers, the promises and representations made by the Builders and others to the straw buyers, and the false down payments of the straw buyers as reflected on the HUD-1 settlement statements.
Rental income was collected and sometimes not forwarded to pay the mortgage, as promised. The Builders also did not always make interest payments on loans issued to the straw buyers. As a result of the scheme, straw buyers were left accountable for loans that they did not have the financial means to repay, and banks were forced to initiate foreclosure proceedings and sell the properties at a loss.
Sentences Issued
MALDINI was a former mortgage broker who participated in the scheme as a middleman and a developer from 2005 to 2009. Law enforcement examined at least 22 transactions involving 4 straw borrowers. At sentencing on Monday, the Court ordered MALDINI to serve 60 months in federal prison, followed by 5 years of supervised release, and to make restitution to 11 lenders in the amount of $667,859.
CONGLETON was a real estate developer who participated in the scheme as a builder and a recruiter from 2004 to 2009. Law enforcement examined at least 49 transactions, spread across 20 straw borrowers and 18 lenders. Ultimately, the court ordered CONGLETON to serve 66 months in federal prison, followed by 5 years of supervised release. CONGLETON was further ordered to pay $1,123,459 to the victims of his crime, and another $3,253,142 in the form of a criminal forfeiture judgment consisting of cash and real estate tied to the offense.
JONES was a mortgage broker who participated in the scheme as a recruiter and intermediary from 2003 to 2009. Law enforcement examined at least 67 transactions involving 33 straw buyers and 24 victim lenders. Ultimately, the court ordered JONES to serve 30 months in federal prison, followed by 5 years of supervised release. The court further ordered Jones to pay restitution of $1,367,129 to the victims of his offense.
ROSE was an attorney who participated in the scheme as a closing attorney from 2002 to 2009. Following a search of his law office in 2012, law enforcement examined 98 fraudulent real estate transactions closed by ROSE for various Builders involved in the scheme. The transactions involved 46 straw borrowers and 28 lenders. The Court sentenced ROSE to 42 months in prison, followed by 5 years of supervised release. The Court also ordered ROSE to pay $1,589,298 to the victims of his offense.
PEELE was a real estate developer and recruiter for the scheme from 2007 to 2008. Law enforcement examined 14 transactions in which PEELE was a participant. Those transactions involved 3 straw borrowers, 13 victim lenders, and resulted in approximately $1.6 Million in gross, fraudulent proceeds. The Court sentenced PEELE to serve 30 months in prison, followed by 5 years of supervised release. The Court also ordered PEELE to pay $728,244 in restitution to the victims of his offense, as well as the forfeiture of certain real estate constituting fraudulent proceeds of the offense.
HALL was a real estate developer who participated in the scheme from 2004 to 2007. Law enforcement examined 38 transactions which involved 22 straw borrowers and 20 victim lenders. Ultimately, the Court ordered HALL to serve 39 months in federal prison, followed by 3 years of supervised release. The Court further ordered HALL to pay restitution to his victims in the amount of $1,214,326, and the criminal forfeiture of $7,278,558.00 dollars in cash proceeds from the offense.
HERNDON was a real estate broker and wife of a developer who participated in the offense from 2003 to 2008. Law enforcement examined 21 transactions wherein HERNDON signed false HUD-1 settlement statements on behalf of her real estate company at closing. HERNDON’s fraudulent transactions involved the use of 16 straw borrowers affected 12 victim lenders. The Court ordered HERNDON to serve 33 months in prison, followed by a 5 year term of supervised release. The Court further ordered HERNDON to pay restitution of $1,059,719 to the victims of her offense, as well as the criminal forfeiture of several million dollars in gross criminal proceeds.
HOLLIS participated in the scheme first as a straw buyer, and later as a recruiter. The Court ordered HOLLIS to serve a 5 year term of probation which included an 18 month term of house arrest. The Court further ordered HOLLIS to pay $198,500 to the victims of his offense.
Investigation of this case was conducted by the Federal Bureau of Investigation, the United States Department of Housing and Urban Development Office of the Inspector General, the Federal Deposit Insurance Corporation Office of the Inspector General, and the Internal Revenue Service Criminal Investigation. Other law enforcement partners also assisted in the investigation, including the United State Marshals Service and the Raleigh Police Department. Assistant United States Attorney William M. Gilmore represented the United States.
Oak Island Man Indicted for Aiming Laser Pointer at an AircraftRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announces that a federal grand jury in Raleigh, North Carolina returned an indictment charging CHRISTOPHER LEE FUNK, 34,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.
If convicted, the maximum penalty for this charge is 5 years imprisonment followed by 3 years of supervised release and a fine of $250,000.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty in a court of law. The case is being investigated by the Oak Island Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Eric D. Goulian is prosecuting the case for the government.
U.S. Department of Justice Announces Collaborative Reform Initiative with Fayetteville Police DepartmentRead the Press Release
FAYETTEVILLE, NORTH CAROLINA—Today the U.S. Department of Justice Office of Community Oriented Policing Services (COPS) announced the beginning of a review of the Fayetteville Police Department’s use of force policies and practices. The scope of the work announced today will include an assessment of policies, training, and operations as they relate to use of force, deadly force investigations, and interactions with citizens, taking into account national standards, best practices, current and emerging research, and community expectations. Following the assessment, COPS will issue a report detailing the findings along with specific recommendations for improvement. COPS will assess progress made at the 6-month and 12-month marks issuing follow up reports.
Ronald L. Davis, Director of the Office of Community Oriented Policing Services said, “The Collaborative Reform Initiative we embark on today is just that—a collaboration—and everything this partnership entails will be done in an open and transparent fashion.”
Davis continued, “I applaud Chief Medlock for taking this proactive step to review his agencies policies and practices to ensure that they are current with the latest national standards. Often times police departments seek help too late when the only remedy available is a pattern and practice investigation, consent decree and federal monitor costing millions of dollars. The process we begin today has no cost to the city.”
The U.S. Department of Justice, Office of Community Oriented Policing Services developed the Collaborative Reform Initiative for Technical Assistance in 2011 as an independent and objective way to transform a law enforcement agency through an analysis of policies, practices, training, tactics, and accountability methods around key issues facing law enforcement today.
The goal of the Collaborative Reform Initiative is to help change the ways that law enforcement agencies build community partnerships and enhance transparency; transform agencies through decision making and policies; and institutionalize reforms with integrated accountability measures.
2014 Eastern District Election Officer AppointedRead the Press Release
United States Attorney Thomas G. Walker announced today that Assistant United States Attorney (AUSA) Dennis M. Duffy will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 4, 2014, general elections. AUSA Duffy has been appointed to serve as the District Election Officer (DEO) for the Eastern District of North Carolina, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Walker said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 4, 2014, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Walker stated that AUSA/DEO Duffy will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number 919-856-4847.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at 919-380-4500.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Walker said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
Raleigh Man Pleads Guilty to Conspiring to Provide Material Support for TerrorismRead the Press Release
WASHINGTON—Akba Jihad Jordan, 22 years old, of Raleigh, North Carolina, pled guilty before United States Magistrate Judge Robert B. Jones to conspiracy to provide material support to terrorists in violation of Title 18, United States Code, Section 2339A. Jordan and co-defendant Avin Marsalis Brown, 21 years old, also from Raleigh, were arrested on March 19, 2014 and charged initially in a criminal complaint. On April 1, 2014, a federal grand jury returned an Indictment charging Jordan and Brown with conspiring to provide material support to terrorists.
United States Attorney Thomas G. Walker stated, “This investigation is a sober reminder that we must remain vigilant in our efforts to prosecute extremists who conspire to provide material support to foreign terrorist organizations.”
“Akba Jordan turned his back on his own country and was willing to fight side by side with terrorist groups in Yemen and Syria who wish to do us harm. American citizens who offer support to terrorist organizations pose a grave threat to our national security and will face serious consequences for their actions,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
As set forth in the affidavit supporting the complaint, Brown initiated contact online with an undercover employee of the Federal Bureau of Investigation (FBI). Brown requested assistance in traveling overseas for in order to join extremist groups engaged in violence overseas. Subsequently, both Brown and Jordan engaged in numerous discussions with an FBI confidential source in which they expressed a desire to travel overseas to join certain groups in fighting the “kuffar” (non-Muslims) and “munafiq” (Muslims considered to be hypocrites), primarily in either Syria or Yemen. These groups included al-Qaeda in the Arabian Peninsula (AQAP), the Islamic State of Iraq and Sham (ISIS), and jabhat al-Nusrah (JAN). They also talked frequently about weapons and the use of weapons in fighting the kuffar, both overseas and in the United States. Jordan specifically discussed with Brown the weapons he had in his possession, including an AK-47, and described how he would not hesitate to use them. The affidavit describes a meeting at Jordan’s apartment on December 30, 2013, during which Jordan showed Brown how to break down the AK-47.
On March 19, 2014, Brown was arrested at Raleigh Durham International Airport prior to boarding a flight with final destination in Turkey. Brown stated in an interview that he intended to travel from Turkey into Syria. Once overseas, Brown intended to meet with a member of ISIS whom he had befriended online. Once established, and after Jordan had obtained his own passport and enough funds to purchase a ticket, Brown could then assist Jordan in entering Syria from Turkey to join Brown.
Jordan, who had not yet obtained a passport, was also arrested on March 19. Jordan admitted that he had made an appointment to obtain a passport so that so that he could go to Syria and fight. A search warrant executed that day at Jordan’s apartment recovered the AK-47 and several other weapons. On August 12, 2014, Brown pled guilty to the Indictment. His sentencing is currently set for November 6, 2014.
Investigation of this case was conducted by the Federal Bureau of Investigation, Charlotte Division, Resident Agency Joint Terrorism Task Force (JTTF). The Raleigh JTTF consists of the following agencies: FBI, DHS-H.S.I., Raleigh Police Department, Durham Police Department, Cary Police Department, NC State Bureau of Investigation, and the NC State Highway Patrol. The prosecution is being handled by Assistant United States Attorney Jason Kellhofer and Trial Attorney Michael Dittoe of the Counterterrorism Section in the Justice Department’s National Security Division.
Raleigh Man Pleads Guilty to Child Pornography ChargeRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, MICHAEL JOSEPH PLOCAR, 62pled guilty before Chief United States District Judge James C. Dever III to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2), during his arraignment.
On March 19, 2014, a Criminal Indictment was filed charging PLOCAR with the violation.
In October 2012, according to the investigation, an undercover officer discovered that PLOCAR’s IP address was downloading and sharing Child Pornography (CP). On November 1, 2012, a search warrant was executed at PLOCAR’s home and he was present at the time. During his non-custodial interview, PLOCAR admitted that he had been downloading and viewing child pornography for the past several years. Agents seized several computers, as well as other media devices, including a harddrive which was located in a locked safe that PLOCAR admitted he used to back-up his CP files. A subsequent computer forensics examination of these items revealed approximately 44 videos of CP on 2 computers and 3 harddrives. The videos were lengthy, several over 30 minutes long.
At sentencing, scheduled for the January 12, 2015 term of court, PLOCAR faces up to 20 years imprisonment. If he has had prior convictions relating to aggravated sexual abuse, sexual abuse, abusive conduct involving a minor or ward, sex trafficking of children, or the production, receipt, possession, sale, distribution, shipment, or transportation of children pornography, the penalty increases to up to 40 years imprisonment.
Investigation of this case was conducted by HSI, Wake County Sheriff’s Office, Cary Police Department, and the North Carolina State Bureau of Investigation. Assistant United States Attorney Ethan Ontjes prosecuted the case for the United States.
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.
Armed Career Criminal Sentenced to 25 Years in Federal PrisonRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that in federal court, United States District Judge Louise W. Flanagan sentenced gary starkie , 52, of Greenville to 25 years in federal prison, followed by 5 years of supervised release.
STARKIE had been indicted by a federal grand jury for being a felon in possession of a firearm. These charges stemmed from an incident on June 28, 2012, when two patrol officers with the Greenville Police Department intercepted STARKIE as he was about to commit an armed robbery of a convenience store and sweepstakes location in Greenville. Upon arresting STARKIE, the arresting officers found him in possession of a semiautomatic pistol.
STARKIE pleaded not guilty to the charge, and the matter went to trial. After a trial in January 2014, before Judge Flanagan, a jury found STARKIE guilty of being a felon in possession of a firearm.
As an Armed Career Criminal, with prior convictions for first degree rape and first degree kidnapping, STARKIE faced a mandatory minimum sentence of 15 years imprisonment. After carefully reviewing STARKIE’S history and characteristics, as well as assessing the nature and circumstances of his offense, Judge Flanagan sentenced STARKIE to serve 300 months (25 years) in federal prison.
“Gary Starkie has a criminal history, punctuated by acts of violence and sexual violence perpetrated against women,” said Assistant United States Attorney Evan Rikhye. “We are grateful to the jury in New Bern that convicted him and we believe that the tough sentence meted out by Judge Flanagan will ensure that the residents of Greenville and Pitt County will no longer have to suffer the depredations of this violent felon.”
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Greenville Police Department. Assistant United States Attorney Evan Rikhye represented the government. United States Attorney Walker commended the work of Keith Sawyer and Brian Negue, the Greenville Police Department officers who apprehended STARKIE.
Soldier Pleads Guilty to Theft of over $400,000 Worth of FuelRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that today in federal court, before United States Magistrate Judge Kimberly A. Swank, ALEXANDER SWIM , 25, of Fort Bragg, North Carolina, entered a guilty plea to the theft of fuel from Forward Operating Base (FOB) Sharana, Afghanistan in violation of Title 18, United States Code, Sections 641 and 2.
According to information in the public record, ALEXANDER SWIM is a Specialist (E-4) in the United States Army assigned to the 3rd Special Forces Group. From January 2012 through October 4, 2012, SWIM was assigned to an Advanced Operating Base (AOB) deployed to Afghanistan under the Combined Joint Special Operations Task Force (CJSOTF) - Afghanistan assigned under the Special Operations Task Force (SOTF)-East, also known as Task Force 23, and assigned to the Forward Operating Base ("FOB") Sharana. During his deployment to Afghanistan, SWIM served as an AOB Mechanic with duties to work at FOB Sharana's fuel point and to perform maintenance on military vehicles.
During his deployment, SWIM and others engaged in a fuel theft scheme. Specifically, SWIM worked with another U.S. soldier (James Edward Travis who was previously indicted), to steal fuel belonging to the United States Government from the fuel point at FOB Sharana. On multiple occasions, SWIM was paid to escort a foreign national driver to the fuel point on FOB Sharana, to load fuel belonging to the United States into such driver's truck, and to escort the driver with the stolen fuel back off FOB Sharana.
Agents determined that 182,815 gallons of fuel were stolen. Based on an average price of $2.31/gallon for JP-8 fuel, the loss from the fuel theft scheme to the government is estimated at $422,302.65
"Defense Criminal Investigative Service (DCIS) Special Agent in Charge John F. Khin, Southeast Field Office, commented, "It is disheartening when a military member abandons his code of conduct and steals from his own unit for personal enrichment, especially when it undermines the combat mission. DCIS will continue to aggressively investigate violators to protect Department of Defense resources around the world, and preserve precious American taxpayer dollars."
"Specialist Alexander Swim, US Army, 3rd Special Forces Group, betrayed his unit, the US Army and the nation for personal profit. Swim with his co-conspirators entered into illegal relationships in order to personally profit from the sale and transport of fuel valued at over $400,000. These actions, especially in a war time environment, damage the reputation of all soldiers and impede the success of coalition war efforts. Those involved in this type of criminal activity will be aggressively pursued by the FBI and our military partners dedicated to upholding justice," said John Strong, Special Agent in Charge of the FBI in North Carolina.
"Today's plea is a prime example of our continued and relentless commitment to investigate and hold accountable all those who would commit fraud against the U.S. Army, especially those in uniform and during a time of war," said Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. "The Army's Criminal Investigation Command continues to work round the clock in cooperation with our inter-agency law enforcement partners in theaters around the world to protect Army and National interests."
The maximum penalty that SWIM faces at sentencing is 10 years imprisonment and/or a $250,00 fine, restitution and forfeiture in the amount of $15,000.
The criminal investigation of this case was conducted by Defense Criminal Investigative Service, the Federal Bureau of Investigation, the United States Army Criminal Investigation Command, and the Office of the Special Inspector General for Afghanistan Reconstruction (SIGAR). Assistant United States Attorney Banumathi Rangarajan is handling the prosecution of the case.
Banker Pleads Guilty to Felony False Statement ChargeRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that in federal court today before United States Magistrate Judge Kimberly A. Swank, MATTHEW MARKS WESTBROOKS, 33, of Lexington, South Carolina, pleaded guilty to a Criminal Information charging him with Making Material False Statements, in violation of Title 18, United States Code, Section 1001.
The Criminal Information to which WESTBROOKS pled guilty charged that during times material to the case, WESTBROOKS was employed as a mortgage originator in the Eastern District of North Carolina. WESTBROOKS was separately, but simultaneously, engaged with others in the business of buying and selling properties for profit. In his work as a mortgage originator, WESTBROOKS received a commission whenever he successfully assisted a borrower to obtain a mortgage loan. WESTBROOKS did not receive a commission if the mortgage loan was not approved by the lender, and if the associated real estate transaction did not close.
The Criminal Information further charged that as a mortgage originator, WESTBROOKS was responsible for, among other things, typing borrower loan qualifications and other information into software used by his employer to electronically transmit loan application information from North Carolina to banks and lenders located in various other states. The Loan Application Software was also used to generate a physical or electronic copy of a Uniform Residential Loan Application, or Form 1003, containing borrower loan application information. Form 1003 required the borrower to identify, among other things, the source of any down-payment funds. Form 1003 contained a warning that “misrepresentation(s) of the information contained in this application may result in . . . criminal penalties, including, but not limited to, fines or imprisonment. . .”
The Criminal Information further alleged that as a mortgage originator, WESTBROOKS was required by his employer on each transaction to communicate with the borrower regarding the borrower’s obligations at closing, including the requirement to bring to the closing cash due from the borrower under the terms of the loan. Specifically, WESTBROOKS was required to obtain a copy of the HUD-1 Settlement Statement (“HUD-1”) from the closing attorney. The HUD-1 showed, among other things, the remaining balance of the “Borrower’s Obligation,” or cash due from the borrower at closing. WESTBROOKS was obligated to review the HUD-1s and confer with the borrower regarding the Borrower’s Obligation, as set forth in the HUD-1.
The banks and lenders did not permit the seller, the mortgage originator, or a third party to the transaction to “front” or pay the Borrower’s Obligation on behalf of the borrower. The borrower was obligated to bring to closing the amounts identified on the HUD-1 in satisfaction of the Borrower’s Obligation. Moreover, the HUD-1 contained a warning that providing false statements on the HUD-1 could result in a prosecution under Title 18, United States Code, Section 1001.
The Criminal Information specifically alleged that on or about February 14, 2007, WESTBROOKS falsified a loan application and HUD-1 Settlement statement which reflected that the borrower supplied down payment funds when, in fact, the defendant had supplied the funds on behalf of the borrower.
At the sentencing in this case, which is presently scheduled for the January 2015 term of court, WESTBROOKS faces up to five years of imprisonment, up to a $250,000 fine, up to three years of supervised release, and an order of restitution.
The case against WESTBROOKS relates to the pending cases against developer JUSTIN LEE ROOKS, 31, of Loris, South Carolina; developer MICHAEL THOMAS BARTLETT, 46, of Myrtle Beach, South Carolina; closing attorney ROBERT HAROLD MELVILLE, JR., 50, of Lake Waccamaw; and ANTHONY MICHAEL TEW, 31 of Conway, South Carolina. On December 11, 2012, ROOKS and BARTLETT pled guilty to Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 1349. MELVILLE pled guilty to Conspiracy to Commit Bank and Wire Fraud, in violation of Title 18, United States Code, Section 1349. The charges against MELVILLE, ROOKS, and BARTLETT carry maximum penalties of 30 years in prison and up to $1 million in fines. On February 12, 2013, TEW pled guilty to Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371, which carries a maximum term of imprisonment of 5 years and up to $250,000 in fines.
Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore represented the United States.
Thomas L. Kimmel Sentenced for Conspiracy, Mail Fraud, and Money LaunderingRead 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 Thomas L. Kimmel, 68, to 264 months imprisonment followed by 3 years of supervised release. Kimmel was ordered to pay over $16.5 million in restitution. On June 26, 2014 KIMMEL was convicted by a jury trial of Conspiracy, Mail Fraud, and Money Laundering.
KIMMEL was named in an Indictment filed on August 21, 2013. Assistant United States Attorney David A. Bragdon stated, “Kimmel used his professed spirituality and position of trust as a tool to defraud victims at their churches-the very places they felt the most safe. From day one, Kimmel told lies to maximize his commissions. He used trust and faith to defraud hundreds of victims, many of whom invested their life’s savings.”
At trial, the Government presented evidence that KIMMEL solicited about $20 million for Sure Line Acceptance Corporation from investors. Most of these investors found out about Sure Line through financial conferences that KIMMEL gave at churchesrelating to Biblical principles of finance and getting out of debt. Most of the victims never received any of their principal back. KIMMEL would typically spend a few minutes of each conference telling investors about a 12% collateralized note program. Many of these presentations were recorded, and the Government presented evidence that Kimmel’s statements about Sure Line were false and that the collateralized note program was a Ponzi scheme. The jury heard testimony from three conspirators who had previously pled guilty to Conspiracy and Sale of Unregistered Securities; James Willis Kirk, Jr., Glen E. Smith, Jr., and Carol April Graff. The jury also heard testimony from about fifteen victims.
Investigation of this case was conducted by the Federal Bureau of Investigation, the Internal Revenue Service, and the Postal Inspection Service. Assistant United States Attorneys David A. Bragdon and Evan Rikhye prosecuted the case.
Columbus County Schools Receive National Institute of Justice Comprehensive School Safety Initiative GrantRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced today that the Office of Justice Programs’ National Institute of Justice (NIJ) has awarded nearly $63 million to school districts and research organizations through the Comprehensive School Safety Initiative (CSSI). CSSI is a large-scale, multi-agency research effort to build knowledge about effective approaches to increasing school safety nationwide.
Columbus County Schools received $1,499,019 and will partner with Robeson County Schools. The purpose of the proposed 3-year research project is to implement and evaluate a restorative justice school safety initiative that 1) reduces bullying perpetration and victimization, aggression, and violence, 2) enhances school safety and mental health in middle and high school students, and 3) reduces the school to prison pipeline by diverting first offenders from the juvenile justice system into school-based Teen Courts for middle and high schools. The study will be conducted in Columbus and Robeson County. Both of these counties are rural, impoverished and ethnically diverse. Staff from the North Carolina Academic Center for Excellence in Youth Prevention will complete the research evaluation. NC-ACE is one of six CDC-funded youth prevention centers and the only one working in rural areas. Robeson County Teen Court and Youth Services is an agency implementing evidenced-based models of restorative justice programming and will coordinate implementation fidelity for the proposed project.
“This funding is being awarded as part of the Comprehensive School Safety Initiative – a large-scale, multi-agency research effort to build practical, and scientifically-sound, knowledge about effective ways to increase school safety nationwide,” said Attorney General Eric Holder. “These collaborative efforts will yield new insights and evidence about what works – and what doesn’t – when it comes to school discipline, violence and bullying reduction, school resource officers, mental health professionals and justice interventions like youth courts.”
Through the Initiative, 24 research projects receive funding under two different solicitations. The first, “Investigator-Initiated Research,” includes nine awards to research organizations totaling more than $18 million. The second, “Developing Knowledge about What Works to Make Schools Safe,” provides more than $45 million to 15 school districts and their research partners.
“We know a great deal about how to make schools safe in general but very little about the specifics for various settings and populations,” said Dr. William J. Sabol, Acting Director of NIJ. “With this $63 million investment, the nation will gain an understanding of school safety that is scientifically sound, practical, and that can be easily interpreted and used by schools.”
President Obama’s January 2013 plan to end gun violence emphasized keeping guns out of potentially dangerous hands and recognized that additional actions are needed to make our schools safer. CSSI was launched in early 2014 in response to a Congressional request for a broad, research-based effort to increase safety in the nation’s schools.
The initiative has three primary goals: to collect national-level data; to convene stakeholders to identify and share best practices; and to conduct innovative research and evaluate pilot projects in school districts. The programs and policies within CSSI are designed to produce evidence about what works in such areas of school safety as effectiveness of school resource officers and mental health professionals, violence and bullying reduction, and effectiveness of such restorative justice interventions as youth courts. The initiative will also examine potential unintended consequences of school safety efforts, including the excessive use of exclusionary discipline and arrests of students.
Although NIJ has primary responsibility for CSSI, the program is a collaborative effort among more than 20 federal partners, including the Departments of Justice, Education, Health and Human Services, Homeland Security, and the Treasury. This partnership will allow the federal government to make a significant impact on school safety by investing limited funds in research that has practical applications for every school in the nation. By determining what interventions work best for specific schools and students, CSSI will provide professionals with a body of knowledge to help them make decisions about which programs will be most effective — and most cost effective — for their particular schools and their challenges.
A list of the awards and more information about CSSI are available at www.nij.gov, keywords: “School Safety.”
The Office of Justice Programs (OJP), headed by Assistant Attorney General Karol V. Mason provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART).
Business Owner Sentenced for Wire FraudRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, HILDA PARKER , 57, of Goldsboro, North Carolina, was sentenced to 12 months and 1 day imprisonment followed by 3 years of supervised release for wire fraud by Chief United States District Judge James C. Dever III. She was also ordered to pay $128,983.45 in restitution due in full immediately. PARKER previously pled guilty to that charge on May 22, 2014.
According to information in the public record, HILDA PARKER owned and operated Parker Products, which operated as a broker of goods for the Defense Logistics Agency (“DLA”). Between April 2007 and December 2007, Parker Products was awarded 217 purchase orders valued at $346,508.26 under a streamlined fast-pay purchase system. With respect to 29 of the 217 purchase orders (total value of $128,983.45), Parker Products failed to deliver the goods ordered. HILDA PARKER, however falsely verified via wire shipment of the goods and received payments in connection with those 29 purchase orders. Because of the fast-pay purchase system, DLA made payment on the verification rather than actual receipt of the goods ordered.
Some of the items ordered through HILDA PARKER d/b/a/ Parker Products, Inc. were mission critical. According to Betty J. Lavery, Contracting Officer for the Defense Logistics Agency Land and Maritime, one of the undelivered purchase orders was identified an “emergency buy” – a designation reserved for an acquisition so urgently needed that a delay would result in a “serious injury” to the Government. Specifically, PARKER failed to deliver a repair/replacement part needed in a Light Armored Vehicle (LAV) operated by the U.S. Marine Corps and which was scheduled to be loaded aboard a ship leaving for Iraq. Her failure to deliver the needed part by the delivery date, as well as her other delivery failures, resulted in the degradation of operational readiness for a number of military units.
The criminal investigation of this case was conducted by Defense Criminal Investigation Service. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution of the case.
Desmond Simpson of Wilmington Convicted of Hobb’s Act Robbery and Firearms Violation 924(c)Read the Press Release
ELIZABETH CITY – United States Attorney Thomas G. Walker announced that today in federal court, before United States District Judge Terrence W. Boyle a jury convicted, DESMOND SIMPSON, 29, of Wilmington, for Robbery and Carrying and Brandishing a Firearm, during and in relation to a crime of violence.
SIMPSON was named in an Indictment filed on December 17, 2013.
According to the investigation and information presented in open court during the trial, on April 25, 2012, SIMPSON, robbed a Papa John’s delivery person and repeatedly beat the individual in the head with the butt of a handgun resulting in significant head injuries requiring numerous staples. SIMPSON was connected to the crime with DNA evidence.
At sentencing that will be scheduled at a later date, SIMPSON faces a maximum sentence of 20 years imprisonment for the Hobbs Act Robbery and not less than 7 years and up to life imprisonment for the 924(c) conviction.
Investigation of this case was conducted by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant United States Attorney Charity Wilson and Assistant United States Attorney Jane Jackson prosecuted the case. Ms. Wilson is a prosecutor with the District 5 District Attorney’s Office encompassing New Hanover and Pender Counties. District Attorney Ben David has assigned her to the United States Attorney’s Office to prosecute violent crime, firearm related cases, and narcotic crimes.
Surf City Resident and Captain of “the Raven” Pleads Guilty to Violating the Clean Water Act and the Rivers and Harbors ActRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced that today in federal court, before Senior United States District Judge James C. Fox, david wayne luther , 63, of Surf City, North Carolina, entered a guilty plea to violating the Clean Water Act and the Rivers and Harbors Act.
According to information in the public record, on July 29, 2012, officers with the North Carolina Marine Patrol responded to a complaint of dredging in waters near Surf City, North Carolina. North Carolina Marine Patrol officers determined that LUTHER was "prop washing" with the M/V The Raven. The officers ordered LUTHER to cease and desist dredging activities. Approximately three hours later, on July 29, 2012, North Carolina Marine Patrol received another complaint of dredging activity by UTHER. On July 30, 2012, a Coastal Area Management Act (CAMA) representative took measurements at the violation site and confirmed unauthorized dredging activity.
“The dredging of federal waterways is strictly regulated to protect water quality and wildlife,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in North Carolina. “The defendant repeatedly dredged material in an environmentally sensitive area that has been designated an essential fish habitat. EPA will hold violators accountable as part of its mission to protect human health and the environment.”
On August 10, 2012, CAMA issued a Notice of Violation and Request to Cease Unauthorized Development to Captain David LUTHER. A copy of the Notice was hand delivered to LUTHER on August 14, 2012. During the morning of August 14, 2012, CAMA received an anonymous complaint alleging dredging activity during the night time hours involving the M/V The Raven at the violation site. During the afternoon of August 14, 2012, a multi-agency site visit confirmed additional dredging activity at the original violation site. The violation site was determined to be a Primary Nursery Area for oysters.
The maximum penalty that LUTHER faces at sentencing for both counts is a total of two years imprisonment, and a maximum total fine of $200,000. Pursuant to his plea agreement, LUTHER has also agreed to purchase .21 acres of coastal wetland restoration in order to compensate for impacts to wetlands and other jurisdictional waters impacted from his criminal conduct prior to sentencing hearing. If he fails to make the purchase, LUTHER has agreed not to contest a $50,000 additional fine.
The criminal investigation was conducted by the EPA-CID, the North Carolina State Bureau of Investigation, the U.S. Army Corps of Engineers, and North Carolina Marine Patrol. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution of the case.
Five Sentenced for Johnston County Area Cocaine (Crack) DistributionRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that JOANNE SESSION SMITH, 57, of Clayton, AL MACE, 33, of Smithfield, DWAYNE MAY, 47, of Selma, BRENDA RICHARDSON, 50, of Selma, and CHERIE SNEAD, 40, of Selma, were each sentenced resulting from their earlier guilty pleas to conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base (crack). The charges involved a large scale narcotics ring responsible for selling kilos of crack from around January 1990 to December 21, 2011 in the Johnston County area.
All 5 defendants were sentenced by Senior United States District Judge Malcolm J. Howard. SMITH was sentenced to 168 months imprisonment; MACE was sentenced to 24 months imprisonment; MAY was sentenced to 168 months imprisonment; RICHARDSON was sentenced to 24 months imprisonment; and SNEAD was sentenced to 60 months imprisonment. All of these defendants will also be placed under supervised release for 5 years following their release from prison.
Assistant United States Attorney Jennifer E. Wells stated, “These sentences are a direct result of the diligent and thorough work of the Johnston County Sheriff’s Office. Our partnership with local agencies is an important part of our continued effort to protect the citizens of the Eastern District of North Carolina from long-time drug traffickers such as Ms. Smith.”
According to the investigation, In July 2011, the Johnston County Sheriff’s Office, initiated an investigation related to the distribution of cocaine base (crack). As a result of the investigation, JOANNE SESSION SMITH was identified as a drug trafficker and targeted for prosecution. Furthermore, the other four defendants listed above were identified as participants in SMITH’s drug organization. These individuals assisted SMITH by delivering crack. MAY also assisted the organization by providing protection. Specifically, MAY accompanied SMITH and other co-defendants during multiple drug transactions. After numerous controlled purchases, agents executed search warrants on SMITH’S residence which she shared with MAY, and on SNEAD’S residence and vehicle. Agents seized crack, cocaine, currency, and marijuana during these searches.
Based on the investigation, SMITH is responsible for distributing at least 284.415 kilograms of crack and 64.7 grams of cocaine. SMITH took crack orders from multiple buyers, converted cocaine into crack, packaged the crack for sale, and arranged the delivery of the drugs to the respective buyers.
In addition, SMITH maintained a premise for the purpose of distributing a controlled substance.Investigation of this case was conducted by the Johnston County Sheriff’s Office. Assistant United States Attorney Jennifer E. Wells is handling the prosecution for the government.
Army Sergeant Pleads Guilty for Scheme to Defraud the MilitaryRead the Press Release
WASHINGTON – An Army sergeant pleaded guilty today to bribery and conspiracy to defraud the government for his role in a scheme to steal more than one million gallons of fuel from the U.S. military for resale on the black market in Afghanistan.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina, Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service (DCIS) Southeast Field Office, Special Agent in Charge John A. Strong of the FBI’s Charlotte Division, Director Frank Robey of the U.S. Army Criminal Investigation Command (CID) Major Procurement Fraud Unit (MPFU) and Special Inspector General for Afghanistan Reconstruction John F. Sopko made the announcement.
Christopher Ciampa, 32, of Lillington, North Carolina, entered his guilty plea before U.S. District Court Judge Terrence W. Boyle of the Eastern District of North Carolina. The sentencing hearing was scheduled for the week of December 15, 2014.
“Sergeant Ciampa took bribes to help steal millions of dollars’ worth of fuel meant to support U.S. military operations in Afghanistan,” said Assistant Attorney General Caldwell. “His greed put his fellow soldiers at greater risk, and his actions stand in stark contrast to the integrity and sacrifice demonstrated every day by the men and women of our Armed Forces.”
“The DCIS, with our investigative partners, continues to aggressively pursue those who deprive the Department of Defense of much needed resources, such as fuel, critical to accomplishing its global missions,” said DCIS Special Agent in Charge Khin. “Corruption and theft in a combat environment, especially on such a large scale, degrade the effectiveness of the U.S. armed forces, and increases the danger to our warfighters by diverting those resources to our enemies
“Sergeant Christopher Ciampa betrayed his unit and nation for personal profit by entering into illegal relationships in order to personally profit from the sale and transport of fuel valued at millions of dollars,” said FBI Special Agent in Charge Strong. “These actions, especially in a wartime environment, damage the reputation of all soldiers and impede the success of coalition war efforts. Those who put the reputation and lives of their fellow servicemen and women at risk will be aggressively pursued by the FBI and our military partners dedicated to upholding justice.”
“Our highly-trained special agents are experts in fraud investigations and untangling webs of lies and deceit,” said CID MPFU Director Robey. “Whether an individual is in or out of uniform, it makes no difference, we will do everything in our investigative power to see those who defraud the Army brought to justice.”
“The crimes alleged in this case are serious and describe actions that undermine our mission in Afghanistan,” said Special Inspector General Sopko. “SIGAR will continue to work tirelessly to protect the American taxpayers’ hard earned money and bring the full weight of the justice system to bear on anyone who seeks to rob the U.S. government.”
According to his plea agreement, Ciampa was deployed to Afghanistan with the 3rd Special Forces Group Service Detachment and was assigned to Camp Brown at Kandahar Air Field between February 2011 and January 2012. During the deployment, one of Ciampa’s chief responsibilities was management of the Transportation Movement Requests (TMRs) for fuel and other items in support of military units in Afghanistan paid for by the U.S. government.
Over the course of the conspiracy, Ciampa and others created and submitted false TMRs for the purchase of thousands of gallons of fuel that were neither necessary nor used by military units. Instead, Ciampa and his co-conspirators stole the fuel and resold it on the black market in neighboring towns. Between February 2011 and December 2011, they created false TMRs for 114 large fuel tanker trucks, which could each carry approximately 10,000 gallons of fuel. All of the TMRs were awarded to a single Afghan trucking company, despite significantly higher rates charged by this company.
As a result of the criminal conduct, the United States suffered a total loss of $10,812,000. The loss resulted from stolen fuel and payments on the fraudulent TMRs in the following amounts: $9,120,000 in lost fuel and $1,692,000 in fraudulent TMRs for the 114 large tanker trucks.
Ciampa admitted that he and his co-conspirators sent some of the illicit proceeds back to the United States via wire transfer and carried some of the cash in their luggage, and Ciampa hid $180,000 of stolen funds inside stereo equipment that he shipped back to North Carolina with his unit’s gear. He used his share of the proceeds from the scheme to purchase a truck and other personal items.
The case was investigated by DCIS, FBI, CID MPFU and the Special Inspector General for Afghanistan Reconstruction (SIGAR). The case is being prosecuted by Trial Attorney Wade Weems on detail to the Criminal Division’s Fraud Section from SIGAR and Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina.
North Carolina U.S. Attorney’s Offices Co-sponsor Federal Domestic Violence Conference September 10-12, 2014, in GreensboroRead the Press Release
RALEIGH - United States Attorneys Thomas G. Walker, Ripley Rand, and Anne M. Tompkins announced that their three Offices are co-sponsoring a Federal Domestic Violence Conference September 10-12, 2014, at the Greensboro-High Point Marriott in Greensboro. Preventing and prosecuting Domestic Violence cases is a priority of the U.S. Department of Justice, and this training is designed to bring together law enforcement and service providers to educate them about this deplorable crime. Equally important is caring for and providing services to the victims of domestic violence, and discussions of issues related to victim services topics are also on the agenda.
Domestic violence continues to plague our communities, adversely affecting countless victims and their families. There is a great need to educate those involved in responding to domestic violence about the tools available to treat the victims and prosecute the perpetrators using federal laws when appropriate. There is also a need to educate service providers and law enforcement about the methods to reduce the barriers for victims seeking services, and to educate our state and local partners about the federal tools available to prosecute these crimes.
“One of the Department of Justice’s priorities is protecting vulnerable victims and holding offenders accountable, and the North Carolina United States Attorney’s Offices are committed to working together effectively with law enforcement and other groups to fight domestic violence,” said United States Attorney Rand.
“Domestic violence is a national epidemic and it is happening here, in our own communities, with many of the victims and perpetrators hiding in plain sight. The U.S. Attorney’s Office for the Western District of North Carolina has played an active role in raising public awareness, increasing law enforcement training and establishing partnerships with victim service providers in Western Carolina. This symposium is a continuation of our efforts to create and maintain these strong partnerships, which can be force multipliers in our fight against domestic violence,” said U.S. Attorney Tompkins.
“This event is an excellent example of the vital collaboration needed between the law enforcement and the service provider community. Efforts to confront domestic violence must include an increased awareness of the indicators of this crime by those who are most likely to encounter the victims,” said U.S. Attorney Walker.
The conference is also being co-sponsored by the U.S. Department of Justice, Office for Victims of Crime, the North Carolina Coalition Against Domestic Violence, the North Carolina Governor’s Crime Commission, the North Carolina Justice Academy, the Carolinas Institute for Community Policing, the North Carolina Victim Assistance Network, the North Carolina Coalition Against Sexual Assault, and the North Carolina Conference of District Attorneys.
Credentialed members of the media are invited to the conference. The agenda is attached with more details about the training.
Four Indicted for Fraud Against Government Contracting ProgramsRead the Press Release
GREENEVILLE, Tenn. – A federal grand jury in Greeneville returned an indictment on Aug. 12, 2013, against Ricky Anthony Lanier, 47, and Katrina Reshina Lanier, 40, of LaGrange, N.C.; Latoya Montrevette Speight, 37, of Snow Hill, N.C.; and Emanuel Louis Hill, 47, of Louisville, Ky., for wire fraud, conspiracy to commit wire fraud, and major fraud against the United States.
These individuals appeared in court on Sept. 9, 2014 before U.S. Magistrate Judge Dennis Inman and pleaded not guilty. All were released on bond pending trial, which has been set for Nov. 18, 2014 in U.S. District Court, in Greeneville, Tennessee.
If convicted, they all face a term of 20 years in prison as to each wire fraud charge and up to 10 years in prison for the charges of major fraud against the United States. Additionally, they face fines of up to $250,000 and up to three years of supervised release as to each count. The indictment also seeks forfeitures of approximately $15 million as to the Laniers and Speight and approximately $5 million as to Hill.
Details of this conspiracy are included in the indictment on file with the U.S. District Court, which alleges that the Laniers, Speight, and Hill conspired from November 2005 to April 2013 to defraud the United States government through a scheme to fraudulently obtain federal contracts intended to be awarded to businesses lawfully participating in the Small Business Administration’s 8(a) Business Development program and the Department of Veterans Affairs’ Service-Disabled Veteran-Owned Small Business Concern program.
This indictment is the result of an investigation by Department of Veterans Affairs Office of Inspector General, Department of Interior Office of Inspector General, Small Business Administration Office of Inspector General, and United States Secret Service, with assistance from the National Park Service and General Services Administration Office of Inspector General. Assistant U.S. Attorneys Neil Smith and David Gunn will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Four Indicted for Fraud Against Government Contracting ProgramsRead the Press Release
GREENEVILLE, Tenn. – A federal grand jury in Greeneville returned an indictment on Aug. 12, 2013, against Ricky Anthony Lanier, 47, and Katrina Reshina Lanier, 40, of LaGrange, N.C.; Latoya Montrevette Speight, 37, of Snow Hill, N.C.; and Emanuel Louis Hill, 47, of Louisville, Ky., for wire fraud, conspiracy to commit wire fraud, and major fraud against the United States.
These individuals appeared in court on Sept. 9, 2014 before U.S. Magistrate Judge Dennis Inman and pleaded not guilty. All were released on bond pending trial, which has been set for Nov. 18, 2014 in U.S. District Court, in Greeneville, Tennessee.
If convicted, they all face a term of 20 years in prison as to each wire fraud charge and up to 10 years in prison for the charges of major fraud against the United States. Additionally, they face fines of up to $250,000 and up to three years of supervised release as to each count. The indictment also seeks forfeitures of approximately $15 million as to the Laniers and Speight and approximately $5 million as to Hill.
Details of this conspiracy are included in the indictment on file with the U.S. District Court, which alleges that the Laniers, Speight, and Hill conspired from November 2005 to April 2013 to defraud the United States government through a scheme to fraudulently obtain federal contracts intended to be awarded to businesses lawfully participating in the Small Business Administration’s 8(a) Business Development program and the Department of Veterans Affairs’ Service-Disabled Veteran-Owned Small Business Concern program.
This indictment is the result of an investigation by Department of Veterans Affairs Office of Inspector General, Department of Interior Office of Inspector General, Small Business Administration Office of Inspector General, and United States Secret Service, with assistance from the National Park Service and General Services Administration Office of Inspector General. Assistant U.S. Attorneys Neil Smith and David Gunn will represent the United States.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt.
Raleigh Resident Pleads Guilty to Loan and Insurance FraudRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that today in federal court, TERESA LYN FLETCHER , age 54, of Raleigh, North Carolina pleaded guilty before United States Magistrate Judge Kimberly A. Swank to two counts of bank fraud and one count of mail fraud. At sentencing, FLETCHER faces a statutory maximum of 80 years imprisonment, a $2,250,000 fine, 5 years of supervised release, and $300 in special assessments.
“Teresa Fletcher’s fraudulent conduct in this case was rooted in greed and propelled by deceit. The fact that Fletcher preyed on these companies one after another to fund her lifestyle reflects a disturbing disregard for the kind of fair and honest dealing required of customers seeking loans, insurance, and other valuable financial services. Those who would violate that trust for their own gain, as the defendant did here, will not go unnoticed by federal law enforcement and be prosecuted accordingly,” stated Assistant United States Attorney Adam F. Hulbig.
“This case is a fine example of the extent to which some will take to fraudulently manipulate our financial institutions,” said U.S. Secret Service Resident Agent in Charge Robert Trumbo. “The Secret Service along with our law enforcement counterparts remain vigilant in protecting those financial institutions and pursuing those who wish to take advantage of those institutions.”
According to the investigation, charging documents and statements made in court, FLETCHER engaged in separate schemes to defraud Bank of North Carolina, TD Bank, and Liberty Mutual Insurance over a 10-month span in 2013.
In January 2013, FLETCHER provided false information about her income and assets to Bank of North Carolina in order to obtain a personal loan. Among other things, FLETCHER falsified her credit application and submitted bogus wage records. After Bank of North Carolina approved the loan based on FLETCHER’s fraudulent representations, FLETCHER proceeded to rapidly dissipate the loan proceeds without making a single payment towards the balance. When the loan went into default, FLETCHER filed a false identity theft report with Equifax claiming that the loan account had been opened by someone other than herself.
In February 2013, FLETCHER closed on the purchase of a $1.85 million residence in Raleigh. To finance the purchase, FLETCHER applied to TD Bank for over $1.65 million in loans. Throughout the loan approval and underwriting process, FLETCHER gave false information to TD Bank about her financial health and the nature of the sales transaction. Among other things, FLETCHER completed a loan application in which she falsified her cash assets, provided TD Bank with fake Forms W-2 reflecting grossly inflated wages, and fraudulently represented in the settlement statement (HUD-1) that she had received a “gift of equity” to be applied to the purchase price, when, in fact, it was a concealed side loan. After defaulting on her loan obligations to TD Bank, FLETCHER submitted a false identity theft report to Experian in an effort to prevent the negative item from appearing on her credit report.
From approximately May 2013 to October 2013, FLETCHER repeatedly made false claims against her Liberty Mutual Insurance homeowner’s policy for reimbursement of expenses she allegedly incurred to repair the residence after a spring storm hit the area. In furtherance of her scheme, FLETCHER routinely doctored records from contractors and vendors and provided them to Liberty Mutual to support her claims.
Investigation of this case was conducted by the United States Secret Service. The prosecution is being handled by Assistant United States Attorney Adam F. Hulbig.
Mount Olive Minister Sentenced in Child Pornography CaseRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today in federal court United States District Judge Terrence W. Boyle, sentenced TIMOTHY JACK STRICKLAND to 151 months imprisonment followed by 5 years supervised release.
On February 18, 2014, a Federal Grand Jury returned a Criminal Indictment charging STRICKLAND. On May 14, 2014, STRICKLAND, pled guilty to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2).
According to the investigation, in March, 2013, while attending training, a Federal Bureau of Investigation Task Force Officer engaged in a chat with STRICKLAND, who it was determined later, was a minister at Jones Grove Pentecostal Church in Mount Olive. During the chat the agent observed that STRICKLAND’s directory contained child pornography files. A search warrant was later executed at STRICKLAND’s residence, where a laptop, several harddrives and other media devices were seized. Computer forensics revealed approximately 124,391 images of child pornography.
The criminal investigation of this case was conducted by the Federal Bureau of Investigation, Wayne County Sheriff’s Office, Duplin County Sheriff’s Office and the Mount Olive 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.
Man Who Shot at Wilmington Police Officer Sentenced to 420 Months in Federal PrisonRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today that in federal court, Chief United States District Judge James C. Dever III sentenced JERMAINE CORDOVA , 38, Council, North Carolina, to 420 months imprisonment, followed by 5 years of supervised release.
JERMAINE CORDOVA was named in an Indictment filed on August 21, 2013; charging him with Possession of a Firearm and Ammunition by a Felon. On March 26, 2014, CORDOVA pled guilty to this charge.
According to the investigation, on January 2, 2013, CORDOVA contacted a female stripper and asked her to strip for the victim in this case for $500.00. The female agreed and set up the meeting at her apartment via text message. Upon the victim’s arrival, CORDOVA, along with a male co-conspirator, ambushed the victim, shooting him in the leg. The victim fell to the ground and was shot at least four more times by CORDOVA and/or the co-conspirator. The victim identified CORDOVA as one of the shooters.
On January 29, 2013, a traffic stop was conducted by the Wilmington Police Department on a vehicle occupied by CORDOVA and the co-conspirator. An officer approached the stopped vehicle and asked CORDOVA, who was sitting in the driver’s seat, if he had anything on his person. CORDOVA surrendered a bag containing 12.85 grams of marijuana. CORDOVA’s left arm was restrained with a handcuff as he sat in the vehicle. CORDOVA then became upset and pulled out a loaded semi-automatic pistol, pointed it at the officer, and fired a shot. The officer returned fire missing CORDOVA. CORDOVA then began to flee on foot and ran into a second officer on the scene. CORDOVA raised his firearm at this officer and the officer fired, striking CORDOVA in the left leg. CORDOVA continued to flee and barricaded himself inside a storage building.
Police were forced to break down the door and found CORDOVA inside holding a firearm to his head. After several hours, CORDOVA finally came to the door of the storage building and put down his firearm. CORDOVA was immediately taken into custody and transported to a local hospital for medical treatment.
Investigation of this case was conducted by the Wilmington Police Department along with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Special Assistant United States Attorney Charity Wilson represented the government. Ms. Wilson is a prosecutor with the District 5 District Attorney’s Office encompassing New Hanover and Pender Counties. District Attorney Ben David has assigned her to the United States Attorney’s Office to prosecute violent crime, firearm related cases, and narcotic crimes.
Raleigh and Middlesex Residents Sentenced for Drug Trafficking and Firearm OffensesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today in federal court, Chief United States District Judge James C. Dever III sentenced ANTHONY WAYNE WIGGINS , 51, of Middlesex to life imprisonment, followed by 10 years of supervised release.
WIGGINS was named in an a Superseding Indictment filed on April 9, 2013 charging him with Conspiracy to Distribute and Possess With Intent to Distribute 5 Kilograms or More of Cocaine, Possession With Intent to Distribute 28 Grams or More of Cocaine Base (Crack), and Possession of a Firearm by a Convicted Felon. On March 13, 2014, WIGGINS was found guilty on these charges after a 3 day trial.
Also charged in the Superseding Indictment were ASAEL GOMEZ-JIMENEZ, SILVINO LARA-LARA, DARIO GOMES-JUAREZ and LUISIANA FIGUERROA-QUEZADA.
GOMEZ-JIMENEZ was named in a Superseding Indictment filed on April 9, 2013 charging him with Conspiracy to Distribute and Possess With Intent to Distribute 5 Kilograms or More of Cocaine, Distribution of a Quantity of Cocaine, Possession with the Intent to Distribute a Quantity of Cocaine and Aiding and Abetting, and Eluding Examination and Inspection by Immigration Officers. On March 13, 2014, GOMEZ-JIMENEZ was found guilty on these charges after a 3 day trial. On July 8, 2014, GOMEZ-JIMENEZ was sentenced to 324 months imprisonment, followed by five years of supervised release.
LARA-LARA was named in an a Superseding Indictment filed on April 9, 2013 charging him with Conspiracy to Distribute and Possess With Intent to Distribute 5 Kilograms or More of Cocaine, Two Counts of Distribution of a Quantity of Cocaine and Aiding and Abetting, Possession with the Intent to Distribute a Quantity of Cocaine and Aiding and Abetting, and Eluding Examination and Inspection by Immigration Officers. On March 4, 2014, LARA-LARA pled guilty to these charges. On July 8, 2014, LARA-LARA received a sentence of 132 months followed by a term of five years supervised release.
GOMEZ-JUAREZ was named in an a Superseding Indictment filed on April 9, 2013 charging him with Conspiracy to Distribute and Possess With Intent to Distribute 5 Kilograms or More of Cocaine, Three Counts of Distribution of a Quantity of Cocaine and Aiding and Abetting, and Eluding Examination and Inspection by Immigration Officers. On March 7, 2014, GOMEZ-JUAREZ pled guilty to these charges. On August 5, 2014, GOMEZ-JUAREZ received a sentence of 180 months followed by a term of five years supervised release.
FIGUERROA-QUEZADA was named in an a Superseding Indictment filed on April 9, 2013 charging her with Conspiracy to Distribute and Possess With Intent to Distribute 5 Kilograms or More of Cocaine. On June 17, 2013, FIGUERROA-QUEZADA pled guilty to that charge. On July 8, 2014, FIGUERROA-QUEZADA received a sentence of 30 months followed by a term of five years supervised release.
According to the investigation, GOMEZ-JIMENEZ, WIGGINS and their co-conspirators were involved in a large drug trafficking organization (DTO) which operated in and around Middlesex, North Carolina. GOMEZ-JIMENEZ led this operation beginning in and around November of 2011. During the course of the conspiracy, the DTO was responsible for the distribution of at least 22 kilograms of cocaine in the Eastern District of North Carolina. WIGGINS regularly purchased cocaine from the DTO. On June 30, 2012, officers responded to a domestic disturbance between WIGGINS and his girlfriend. His girlfriend told officers that WIGGINS had drugs and firearms in their residence and led officers to a can which contained 12.8 grams of crack cocaine. A search of the residence revealed an additional 40.34 grams of crack cocaine, two Pyrex glass measuring cups with cocaine residue, which were used to convert cocaine to cocaine base, a Hi-Point 9mm rifle, and several boxes of .45 caliber and .40 caliber ammunition. Officers also seized $3,715.00 in currency from WIGGINS. The investigation concluded that WIGGINS is conservatively responsible for the distribution of 7.5 kilograms of cocaine and 53.14 grams of cocaine base.
Investigation of this case was conducted by the Drug Enforcement Administration, Immigration and Custom Enforcement’s Homeland Security Investigations (HSI), the Raleigh Police Department, the Nash County Sheriff’s Office, the Wilson Police Department and the Person County Sheriff’s Office. Assistant United States Attorney Jennifer E. Wells prosecuted the case for the government.
Fourteen Individuals Indicted Federally for Drug Trafficking in WilmingtonRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced today that fourteen individuals from Wilmington have been charged in Criminal Indictments in connection with drug trafficking offenses. VICTOR FRANCISO VALLADARES, 32, JUSTICE DEVON PRICE, 24, SHAMIKA TARONA FENNELL, 27, TONY SHAHEEN DAVIS, 37, VICTOR MANUEL DAVILA, 55, DEMOND NAKAI FLOWERS, 42, PEARLIE ARMSTRONG, 48, RONALD LEE HARRY, 34and ALICIA DRAYTON, 25 were charged in a 31 Count Indictment as part of an organization that distributed large quantities of heroin, phencycline (PCP), and engaged in money laundering. Additionally, JERMAINE DALE ROGERS, 36, HARLEE BARSHEEN TOMER, 40, PATRICK MCMILLIAN BRAGG, 28, TYQUAWN WASHINGTON, 21 and VINCENT BRUCE JACKSON, 50 were charged in separate Criminal Indictments for offenses related to the distribution of heroin. Initial appearances were held in Wilmington today for ten of the defendants indicted.
If convicted on the offenses, the defendants could face maximum penalties of between 20 years and life imprisonment.
"Street gangs spread violence and fear throughout our communities. While dismantling gangs has long been a priority for the FBI, we are working with our law enforcement partners with increased manpower and increased urgency to address current threats across our state. This investigation is an outstanding example of what federal, state, and local law enforcement can accomplish when we attack the gangs that operate in our neighborhoods," said John Strong, Special Agent in Charge of the FBI in North Carolina.
Wayne Dixie, Special Agent in Charge of ATF stated, “Under the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) “Frontline” initiative we will vigorously work with our federal, state and local law enforcement partners to ensure gang members that use violence against civilians and law enforcement officers are brought to justice. I believe the law enforcement community has come to realize that we all must deal with gang violence and that the only way we’re going to win against gangs is by working together. Subsequently, the joint investigation into this violent gang and today’s joint operations to apprehend them reflects ATF’s and our law enforcement partners resolve to reduce gang violence.”
"Today's arrests represent months of hard work and cooperation through a multi-agency effort, says Ralph Evangelous, Wilmington Chief of Police "Our long-time partnerships with federal, state and local law enforcement were critical to the success of this investigation. I commend all who were involved in removing these violent offenders from our streets and making Wilmington a safer place for all."
The case is being investigated by the Federal Bureau of Investigation Wilmington, Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) Wilmington, the United States Marshals Service, Immigration and Custom Enforcement’s Homeland Security Investigations, the Wilmington Police Department and the New Hanover County Sheriff’s Office. The United States Attorney’s Office for the Eastern District of North Carolina is handling the prosecution of these cases.
The charges contained in this indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
See the attached indictment for additional information.
Dunn Man Sentenced for Cocaine Distribution & Money LaunderingRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced LARRY DONNELL TAYLOR, 40,of Dunn, North Carolina, to 240 months in prison followed by 5 years of supervised released for conspiracy to distribute and possess with intent to distribute 280 grams or more of cocaine base (crack) and 5 kilograms or more of cocaine and conspiracy to commit money laundering. TAYLOR previously pled guilty to these charges on January 2, 2013.
The investigation revealed that from at least 2000 to October 2012, TAYLOR was an upper-level drug trafficker who received large quantities of cocaine and crack cocaine from several suppliers. Upon receiving the drugs, TAYLOR utilized several individuals to distribute his drugs throughout the Eastern District of North Carolina. TAYLOR also converted substantial quantities of cocaine into crack cocaine for resale.
On October 3, 2012, investigators served a federal arrest warrant on TAYLOR at his residence in Fayetteville. Law enforcement officers immediately observed a firearm lying on the floor of TAYLOR’S home. A subsequent search of his home and/or vehicles revealed 9 kilograms of cocaine, 563 grams of crack cocaine, $551,136 in U.S. currency, digital scales, a semi-automatic rifle, and a loaded revolver. Following his arrest, TAYLOR provided an unprotected statement to authorities, wherein
he acknowledged possessing the firearms and drugs.Investigators also determined that between May 2008 and May 2011, TAYLOR used $106,994 in drug proceeds to purchase at least four vehicles, including a 2007 GMC Denali, a 2007 Mercedes 550, a 2004 Ford F-150, and a 2004 Porsche Cayenne. In order to conceal the source of the proceeds, TAYLOR recruited and directed the activities of his sister. At the direction of TAYLOR, she purchased the Mercedes and Porsche on TAYLOR’S behalf and placed the vehicles in her name. The vehicles obtained were purchased with proceeds from TAYLOR’S drug trafficking, and TAYLOR used the vehicles to transport and distribute illegal narcotics throughout the Eastern District of
North Carolina.Based upon the evidence, TAYLOR is responsible for approximately 199.845 kilograms of cocaine, 56.56 kilograms of crack cocaine, and 80 pounds of marijuana, which have a total marijuana equivalency of 241,981 kilograms. TAYLOR also possessed at least two firearms in furtherance of his drug-trafficking activities, and he maintained an aggravated role in the offense by recruiting and directing the activities of other conspirators with regard to the drug-trafficking and money laundering. Lastly, TAYLOR was in the business of laundering funds, and he is conservatively accountable for arranging four automobile transactions totaling $106,994 in drug proceeds.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service Criminal Investigations, Harnett County Sheriff’s Office, North Carolina State Bureau of Investigation, Raleigh Police Department, Cumberland County Sheriff’s Office, and the Dunn Police Department. The federal prosecution was handled by Assistant United States Attorney Jennifer E. Wells and Assistant United States Attorney Steve West.
Wilmington Man Pleads Guilty in Child Pornography CaseRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today TODD BALO, 48,pled guilty before Chief United States District Judge James C. Dever, III, to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2).
On November 23, 2013, a Federal Grand Jury returned a Criminal Indictment charging BALO.
According to the investigation, in November, 2012, law enforcement received a tip regarding an IP address in the Wilmington area receiving child pornography via the peer-to-peer network, Gigatribe. As the investigation progressed, the address and user were identified as BALO. BALO was interviewed and admitted that over the past seven years, he had used Gigatribe to share files with others, to include child pornography that included “very young” children. Law enforcement located and seized 14 computer hard drives, a laptop computer, a thumbdrive, and several cell phones. Forensic analysis found in excess of 7,000 images and 260 videos of child pornography.
At sentencing, scheduled for December 1, 2014, BALO faces up to 20 years imprisonment. If BALO has prior convictions relating to aggravated sexual abuse, sexual abuse, abusive sexual conduct involving a minor or ward, sex trafficking of children, or the production, possession, receipt, sale, distribution, shipment or transportation of child pornography, the penalty increases to up to 40 years imprisonment.
The criminal investigation of this case was conducted by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. 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.
Former Kinston Fire Captain and Reserve Deputy with the Greene County Sheriff’s Office Sentenced to 188 Months in Child Pornography CaseRead 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 THOMAS ANDREW TAYLOR, 53, of Grifton, to 188 months imprisonment followed by 15 years of supervised release.
On February 3, 2014, TAYLOR was named in a Criminal Information charging him with one count of Receipt of Child Pornography in violation of Title 18, United States Code, Section 2252(a)(2). On March 26, 2014, TAYLOR pled guilty to that charge.
According to the investigation, in September of 2012, law enforcement in Philadelphia identified TAYLOR as an individual using a screen name to post pornographic images of children. On January 11, 2013, the National Center for Missing and Exploited Children (NCMEC) notified law enforcement that a subject later identified as TAYLOR, accessed Facebook and posted an image of child pornography on December 22, 2012. Facebook reported the image to NCMEC on December 25, 2012. A search warrant was executed at TAYLOR’S residence on May 31, 2013, and he agreed to a noncustodial interview. During that interview, TAYLOR admitted using his laptop computer, as well as his Yahoo! and Gmail accounts, to trade child pornography with others. On the way to the interview, TAYLOR attempted to destroy evidence by throwing a laptop into a creek off Highway 58 North in Kinston. However, the computer was recovered and was processed for evidence. A subsequent forensic examination revealed that TAYLOR’S child pornography collection included 334 images and 34 videos.
The criminal investigation of this case was conducted by the U.S. Immigration and Customs Enforcement’s Department of Homeland Security Investigations (HSI), Federal Bureau of Investigation, North Carolina Alcohol Law Enforcement, and the Lenoir 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.
Wake Forest Man Pleads Guilty to Possession of Child PornographyRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that in federal court today KYLE CHRISTOPHER HEDDEN, 30, of Wake Forest, North Carolina, pled guilty before United States Magistrate Judge Robert B. Jones, Jr. to one count of possession of child pornography, in violation of Title 18, United States Code, Section 2252(a)(4)(B). HEDDEN was named in a Criminal Information on July 15, 2014.
According to the investigation, on November 1, 2013, an agent working undercover involving a peer to peer file sharing network, discovered HEDDEN’S IP address downloading and sharing child pornography. On February 4, 2014, a search warrant was executed at HEDDEN’S home and during a non-custodial interview, HEDDEN confessed to downloading and storing child pornography on his laptop. A computer forensics examination of HEDDEN’S laptop and 16 harddrives found in his bedroom revealed approximately 250 videos and thousands of images of child pornography. At sentencing, set for the November 2014 term of court, HEDDEN faces a maximum penalty of 20 years imprisonment.
The criminal investigation of this case was conducted by the Federal Bureau of Investigation and 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.
Sanford Man Pleads Guilty to Manufacting Child PornographyRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that in federal court today BAILEY JOE MILLS, 34, of Sanford, North Carolina, pled guilty before United States Magistrate Judge Robert B. Jones, Jr. to one count of manufacturing child pornography, in violation of Title 18, United States Code, Section 2251(a)and (d). MILLS was named in a Criminal Information on June 12, 2014.
According to the investigation, in or about January 2014, MILLS did videotape himself having sex with a 13 year old girl. On January 5, 2014, a search warrant was executed at MILL’S home, where several laptops, external harddrives, and cell phones were seized. Computer forensics located videos taken by MILLS on his cellphone of himself sexually molesting several of juvenile victims, including two toddlers in his care at the time. In addition to the videos, approximately 10,000 images of child pornography were found on MILLS computers, as well as 100,000 images of child erotica and adult pornography.
At sentencing, set for November 4, 2014, MILLS faces a mandatory 35 years up to life sentence due to his two prior sex convictions.
The criminal investigation of this case was conducted by the United States Immgigration and Customs Enforcement’s Homeland Security Investigations - Raleigh, the North Carolina State Bureau of Investigation, and the Harnett 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.
Fayetteville Man Convicted on Narcotics Distribution and Weapons ChargesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced today that MARCUS DORRELL BYRD, 43, of Fayetteville, North Carolina, was convicted by a federal jury on all 5 counts contained in the indictment dated September 18, 2012. Charges consisted of drug and firearms offenses including conspiracy to distribute in excess of 5 kilograms of cocaine, distribution of cocaine, possession of a firearm during a drug trafficking crime, and possession of a firearm by a convicted felon.
During the four day trial, the government presented evidence that between on or about 2009, through on or about June 24, 2011, BYRD conspiredwith others in the Fayetteville area to distribute in excess of 30 kilograms of cocaine. Further, evidence was also presented of several controlled sales of cocaine by the defendant to a confidential informant. During a search of BYRD’s apartment by law enforcement, officers found him in possession of a loaded 9mm handgun, over $15,000 in US currency, a cocaine press, and several digital scales. Due to prior federal drug, rioting, and firearms convictions, BYRD faces a mandatory life sentence plus 25 years to run consecutively at sentencing.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Fayetteville Police Department. Assistant United States Attorneys Ethan A. Ontjes and Carrie Randa prosecuted the case for the government.
Man Sentenced in Raleigh Carjacking CaseRead 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 SERGIO LOPEZ REYNA , 27, to 171 months imprisonment, followed by 5 years of supervised release.
Reyna was named in an Indictment filed on July 17, 2013 charging him with Carjacking and Aiding and Abetting on November 1, 2012 and Brandishing of a Firearm in Furtherance of a Crime of Violence and Aiding and Abetting on November 1, 2012. On February 10, 2014, REYNA pled guilty to those charges.
According to the investigation, SERGIO LOPEZ REYNA, Manuel James Estrada, Jesus Morales-Rodriguez, Luis Felipe Dominguez, and Luis Melito Arellano were involved in a carjacking in Raleigh, North Carolina. On October 31, 2012, REYNA, Estrada, Morales-Rodriguez, Dominguez, and Arellano traveled to La Saona night club in Raleigh. In the early morning on November 1, 2012, they identified a potential victim who was parking his vehicle outside the club. At that point, REYNA, Estrada, and Morales-Rodriguez, all brandishing firearms, confronted the victim. REYNA placed a firearm to the victim’s head and forced him back into his vehicle. Once the conspirators gained control of the victim and his vehicle, Arellano and Dominguez joined them in the vehicle. Morales-Rodriguez drove the vehicle while Arellano was in the front passenger seat. REYNA, Estrada, and Dominguez sat with the victim in the backseat. REYNA forced the victim’s head down while his face was covered with his shirt. The conspirators also stole the victim’s ring, valued at $100, and his wallet, valued at $50. A wallet belonging to the victim’s sister, valued at $56, was also taken from the vehicle during the robbery.
Dominguez, Estrada, and Arellano were previously sentenced for their involvement in this case. Luis Felipe Dominguez was sentenced on March 3, 2014 to 60 months imprisonment followed by 3 years of supervised release. Manuel James Estrada was sentenced on April 4, 2014 to 102 months imprisonment followed by 5 years of supervised release and Luis Melito Arellano was sentenced on June 4, 2014 to 168 months imprisonment followed by 3 years of supervised release. Jesus Morales-Rodriguez has not been arrested and is considered a fugitive.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Raleigh Police Department and the Wake County Sheriff’s Office. Assistant United States Attorney Toby W. Lathan prosecuted the case of the government.
James Willis Kirk, Jr., and Glen E. Smith, Jr., Sentenced in Investment Fraud SchemeRead 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 JAMES WILLIS KIRK, JR., age 63, and GLEN E. SMITH, JR., age 60, to 60 months and 48 months imprisonment respectively. A third defendant, CAROL APRIL GRAFF, age 61, was sentenced to 18 months. At the request of the government the award of restitution has been postponed for 60 days.
KIRK and GRAFF are from Washington, NC. SMITH is from Lake Worth, FL. All three defendants pled guilty to Conspiracy to commit Mail Fraud, Wire Fraud, Sell Unregistered Securities, and Engage in Unlawful Monetary Transactions in violation of Title 18, United States Code, Section 371. KIRK and SMITH also pled guilty to selling Unregistered Securities in violation of Title 15, United States Code, Sections 77e and 77x.
Assistant United States Attorney David A. Bragdon stated, “This scheme targeted victims at churches, often in rural areas. With promises of zero risk, many victims invested money they could not afford to lose. Their lives have been turned upside down.”
KIRK, SMITH, and GRAFF all testified in the trial of co-conspirator Thomas L. Kimmel, who was found guilty by a jury on July 26, 2014 of Conspiracy, Mail Fraud, and Money Laundering. The Government’s evidence showed that Kimmel solicited about $20 million for Sure Line Acceptance Corporation from investors. Investors were falsely promised that their principal was protected by collateral in the form of cars and car loans.
IRS-CI Special Agent in Charge Thomas J. Holloman III stated, “These defendants are con artists who took advantage of honest hardworking people. Inevitably, these schemes collapse causing financial hardships on those whose money was taken through fraud.”
Investigation of this case was conducted by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, and the Postal Inspection Service. Assistant United States Attorneys David A. Bragdon and Evan Rikhye represented the government.
North Carolina Man Pleads Guilty to Killing U.S. Marshals Task Force OfficerRead the Press Release
WASHINGTON – Lamont Deshawn Byrd pleaded guilty today in federal court in Raleigh, North Carolina, to one count of first degree murder of an Officer of the United States announced Thomas G. Walker, U.S. Attorney for the Eastern District of North Carolina. Byrd, 21, was charged by Criminal Information on June 5, 2014, which states that on June 9, 2011, Byrd, with premeditation and malice, killed a Warren Basco “Sneak” Lewis, III, an investigator with the Nash County Sheriff’s Office who was also a sworn special deputy United States marshal assigned to the Eastern North Carolina Regional Fugitive Task Force.
Additionally, according to information provided in open court, on June 2, 2011, Kinston officers responded to an emergency call, in which Thomas Terrell Hinton was fatally shot in the chest by Byrd, Kion Tyearl Dail and two additional juveniles, who then stole his bicycle.
Joining Mr. Walker in today’s announcement are Greg McLeod of the North Carolina State Bureau of Investigation; Wayne L. Dixie, Jr., Special Agent-in-Charge, of the Bureau of Alcohol, Tobacco, Firearms and Explosives; and Bill Johnson, Chief, Kinston Department of Public Safety.
According to United States Attorney Walker; “Assaults on federal law enforcement officers in the performance of their duties will not be tolerated. The death of Special Deputy Lewis is a tragedy for his family and all of us in the law enforcement community.”
“The U.S. Marshals Service’s Task Forces play a critical role in protecting our communities across the nation,” said Stacia Hylton, Director of the U.S. Marshals Service. “The partnerships we form with State and Local law enforcement agencies are at the center of reducing violence in our communities, especially in small towns. The men and women in these task forces are dedicated to this effort and Investigator Warren Lewis exemplified that devotion. He was killed serving warrants on five people, including three who were wanted for murder. Each posed a significant threat within the community. We all still miss Warren and we hope that knowing his killer will face justice brings some small level of peace to this situation, which is important for his beloved family. Warren will always be remembered for the hero he was, giving his life in the protection of others.”
“Today’s plea is the result of a tragedy and loss of human life that was not necessary.” said ATF Special Agent in Charge Wayne Dixie, “Anyone that uses a firearm to commit a violent criminal act, especially the murder of a law enforcement officer will be held accountable for their actions. We will continue to use all of our resources to prosecute those that choose to commit this type of heinous act.”
"North Carolina is grateful for the service and sacrifice of officers like Investigator Lewis, and I'm proud of the work State Bureau of Investigation (SBI) agents and all involved have done to bring justice to this tragic case," North Carolina Attorney General Roy Cooper said.
Director of the Kinston Department of Public Safety Bill Johnson added, “The Lewis family and the State of North Carolina lost a true hero. I wish to thank the many individuals and agencies for their assistance in the effort to see justice done.”
On June 9, 2011, Kinston officers, along with U.S. Deputy Marshals attempted to locate the suspects utilizing warrants and executed a search warrant at 602-A West Lenoir Avenue, Kinston, NC. This address is a residence which has been converted into three separate apartments; one upstairs and two downstairs. Although it appeared that 602-A had been inhabited, the apartment was now empty. However, two shotguns were located. Laboratory testing revealed that Byrd had possessed the weapons. Earlier Byrd and several others had moved to Apt B downstairs.
Later that day, after developing additional information, law enforcement officers went back to the Lenoir Avenue apartments. While searching for the suspects, law enforcement officers announced their presence. As Investigator Lewis was coming down the stairs from the upstairs apartment, Byrd shot three times through the closed door, striking the deputy all three times. After realizing he had shot an officer, Byrd was heard to utter, “See what you made me do?” Byrd then handed the weapon to another individual to hide. After a 20-minute stand-off, the individuals came out. The weapon, a Berretta .40 caliber semi-automatic pistol, was found in a banker’s box in a closet, with Byrd’s DNA on it. The weapon had been stolen from a residence three weeks prior.
Investigator Lewis was transported to the hospital where he later died from his injuries.
According to the Plea Agreement, Byrd has also been charged in state court and will plead guilty to murder charges.
At sentencing, scheduled for November 3, 2014, Byrd faces a life-term of imprisonment followed by up to five years of supervised release.
The investigation was conducted by the North Carolina State Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Kinston Department of Public Safety.
The prosecution is being handled by Assistant U.S. Attorney Jane J. Jackson and Imelda J. Pate, Assistant District Attorney for the Eighth District.
Atlantic Beach Resident Sentenced for Making False Distress Calls to the U.S. Coast GuardRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, before United States District Judge Terrence W. Boyle, HOMER LEWIS BLACKBURN , 27, of Atlantic Beach, North Carolina, was sentenced to 18 months of imprisonment and 3 years supervised release and was ordered to pay $288,390.80 in restitution. On May 2, 2014 BLACKBURN entered a guilty plea to making false distress calls to the United States Coast Guard.
According to information in the public record, on October 8, 2013, Coast Guard Sector North Carolina received a “MayDay” call in which the caller claimed he was sinking and abandoning his boat in the vicinity of Cape Lookout and Shackleford Banks, North Carolina. Upon receipt of the distress call, the U.S. Coast Guard, assisted by the U.S. Marine Corps, the National Park Service and a local salvage company commenced search and rescue operations using helicopters and boats to search the area. Ultimately, the Coast Guard determined that the call was a hoax, but not until after $288,390.80 worth of resources were expended.
Shortly thereafter, Coast Guard Investigative Service (“CGIS”) began an investigation and received information from a witness who identified the caller as HOMER LEWIS BLACKBURN and confirmed it was a hoax. The witness stated that BLACKBURN used a CB radio he mounted to the balcony of his apartment in Atlantic Beach, North Carolina to make the call. She heard him saying,“Mayday, Mayday” and that he was sinking in the vicinity of Cape Lookout, NC. She then told officers that BLACKBURN went out to the balcony to watch the helicopters search Cape Lookout. When the press reported that the call was a hoax, BLACKBURN sent the witness a text message on her phone asking her not to tell anyone about the call.
During the investigation, another witness came forward and claimed that BLACKBURN bragged about making the hoax calls, BLACKBURN admitted he reported that he was sinking off Cape Lookout, and that he, BLACKBURN, thought the calls were funny.
BLACKBURN subsequently confessed to making the hoax calls.
"False distress calls limit the Coast Guard's ability to respond to actual emergencies," said Captain Sean Murtagh, commander of Sector North Carolina. "Ultimately, they penalize the local communities and mariners the Coast Guard is charged to protect by unnecessarily endangering the lives of responders and wasting hundreds of thousands of tax payer dollars. 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."
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 Banumathi Rangarajan prosecuted the case with assistance from Assistant United States Attorney Evan Rikhye.
Court Denies Jeffrey Macdonald’s Motions for A New TrialRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced Senior United States District Judge James C. Fox has denied Jeffrey MacDonald’s latest motions for a new trial. United States Attorney Thomas G. Walker stated, “Today our thoughts turn toward Colette, Kimberly and Kristen MacDonald whose lives were taken tragically by the defendant in this case. We have and will continue to seek justice on their behalf.”
United States District Judge James C. Fox entered an order on July 24, 2014, denying MacDonald’s motions and stating that MacDonald had not made a sufficient showing to permit him to appeal Judge Fox’s decision to the United States Court of Appeals for the Fourth Circuit in Richmond, VA. If MacDonald wishes to appeal, he will now have to ask the Fourth Circuit for permission to appeal the ruling.
MacDonald was convicted in 1979 of the 1970 murders of his pregnant wife Collette, and his two daughters Kimberly, age 5, and Kristen, age 2, at Fort Bragg, NC. Since then, MacDonald has filed numerous challenges to his conviction, all unsuccessful. The latest motions were based on allegations made in 2006 by former U.S. Deputy Marshal Jimmy Britt and DNA test results released in 2006. The District Court found that Britt’s allegations were “incredible and unreliable.” The Court also found that the DNA results did not “constitute exculpatory scientific evidence.”
The Court held a 7-day evidentiary hearing in September 2012 and received extensive briefing in 2013.
The Court stated a separate order would be forthcoming with respect to MacDonald’s 2011 motion requesting additional DNA testing.
The Government is represented in the matter by First Assistant U.S. Attorney John Stuart Bruce, Assistant U.S. Attorney Leslie K. Cooley, and Special Assistant United States Attorney Brian M. Murtagh.
Investigation of this case was conducted by the Army Criminal Investigative Division, and the Federal Bureau of Investigation.
Wilmington Man Sentenced to 210 Months in Child Pornography CaseRead 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 MICHAEL THOMAS BASSETT, JR., 33, of Portsmouth, Ohio, to 210 months imprisonment followed by 20 years supervised release.
On November 25, 2013, a Federal Grand Jury returned a Criminal Indictment charging BASSETT. On April 16, 2014, BASSETT pled guilty to receipt of child pornography, in violation of Title 18, United States Code, Sections 2252(a)(2).
According to the investigation, in March, 2013, law enforcement received a tip advising that an unknown individual had posted child pornography images on the social networking site known as Second Life. A subpoena was issued for subscriber information and the accountholder identified as BASSETT, a registered sex offender from Wilmington, North Carolina. The information was then relayed to the Federal Bureau of Investigation, BASSETT’s estranged wife was contacted, who surrendered a laptop. Forensic examination of the laptop revealed 250 images of child pornography and 105 videos of child pornography.
On September 3, 2013, BASSETT was arrested and his computer and multiple media storage devices seized. The computer and devices were examined and revealed a total of 8,950 images of child pornography.
The criminal investigation of this case was conducted by the Federal Bureau of Investigation and the North Carolina State Bureau of Investigation. 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.
Eastern North Carolina Recycling Business and Owner Sentenced for Unlawful Handling of PCB-contaminated Oil, Tax Violations, and False StatementsRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that BENJAMIN FRANKLIN PASS, 61, and P&W WASTE OIL SERVICES INC. (P&W), of Leland, N.C., were sentenced today in federal court in Raleigh, North Carolina. PASS was sentenced to 42 months in prison and restitution in the amount of $21,373,143.38 for clean-up costs associated with the environmental contamination at his business and an additional $538,857 to the Internal Revenue Service for federal income taxes he failed to pay between 2002 and 2011.
PASS and the company previously pleaded guilty to crimes related to the unlawful handling and dilution of used oil contaminated with polychlorinated biphenyls (PCB). PASS also pleaded guilty to failure to pay taxes and P&W pleaded guilty to material false statements.
United States Attorney Thomas G. Walker stated, “This disregard of environmental protections resulted in significant contamination. The defendant’s conduct placed an economic burden on the United States and an unreasonable risk to the health and safety of the citizens of North Carolina.”
“Today’s sentence is just punishment for the defendant’s actions, which placed the health of North Carolina’s residents and their natural resources at risk,” said Sam Hirsch, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Environmental violations such as these are serious crimes, and the Justice Department and the U.S. Attorney’s Offices will continue to vigorously prosecute those individuals and companies who ignore the laws Congress enacted to protect people and our environment from toxic substances like PCBs.”
The court also ordered P&W to pay restitution in the amount of $21,373,143.38 for losses incurred by Colonial Oil and International Paper as a result of the defendants’ mishandling of used oil contaminated with PCBs that led to widespread contamination and millions of dollars in clean-up costs. P&W was also ordered to serve a five-year term of probation and to take remedial action to address the environmental contamination at its facility in eastern North Carolina and other leased property in eastern North Carolina, including but not limited to, the proper treatment and disposal of PCB-contaminated waste oil.
According to information in the public record, PASS owned and operated P&W’s facility in Leland, N.C. The facility is located approximately 500 feet to the east of the Cape Fear River and a federally recognized wetland.
As part of its business operations, P&W collected, transported, processed, and marketed used oil that it received from small and large companies, such as automotive service stations, transformer repair companies and marinas. P&W also conducted tank cleaning and waste removal.P&W, however, was not authorized to transport, store, or handle used oil containing more than two parts per million (ppm) of PCBs. PCBs are man-made organic chemicals that were manufactured domestically from 1929 to 1979 and were used in hundreds of industrial and commercial applications, such as thermal insulation in electrical transformers and capacitors. PCBs were determined to cause cancer and have been demonstrated to cause a variety of adverse health effects on the immune system, reproductive system, nervous system, and endocrine system. Accordingly, Congress banned the production of PCBs and mandated that no person may distribute in commerce, or use any PCBs other than in a totally enclosed manner, and directed the U.S. Environmental Protection Agency (EPA) to promulgate rules phasing out the manufacture of PCBs and regulating their disposal. PCBs still exist in products produced before the 1979 ban and if mishandled and released into the environment, can remain for long periods of time in the air, water, and soil.
In July 2009, an employee of P&W transported used-oil contaminated with more than 500 ppm of PCBs from a business in Wallace, South Carolina, to its Leland facility where the contaminated used oil was blended and diluted with other used oil. Testing results obtained by PASS in October 2009 revealed PCB contamination in excess of 4,925 ppm.
The contaminated product was eventually resold to Colonial Oil and International Paper. Colonial Oil discovered the contamination as part of its standard sampling and testing protocol. As a result, over three million gallons of contaminated used oil had to be transported and incinerated at a certified disposal site for PCBs. The costs to Colonial Oil for the proper disposal of the contaminated used oil exceeded $17 million in addition to significant disruption of its business operations.
The investigation further revealed that at the direction of PASS, employees of P&W continued to transport and dilute the PCB-contaminated used oil at the facility after the contamination was discovered. The EPA intervened and had the Leland facility designated a Superfund site. Superfund is the name given to the federal environmental program established to clean up the nation’s uncontrolled hazardous waste sites. Costs for the clean-up of the contaminated tanks at the facility exceeded $3.4 million.
Law enforcement also learned that in 2009 and again in 2010, PASS and P&W falsely certified that its employees had taken requisite training on the handling of hazardous wastes and that, between 2002 through 2011, PASS failed to pay his federal income taxes despite having the ability to pay.
“Today’s sentencing is a direct result of the strong collaboration between EPA-CID and its federal law enforcement partners,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in North Carolina. “In order to safeguard the environment and public health, it is essential that we hold companies and their corporate officers responsible for falling to accurately report violations. We will continue to pursue those who fraudulently report information critical to human health and the environment to preserve the integrity of programs designed to protect the public.”
“Mr. Pass’s disregard to uphold his legal obligations in business and paying income taxes have come with a price,” said Richard Weber, Chief, Internal Revenue Service (IRS) Criminal Investigation. “Today’s sentencing reinforces law enforcements collaborative efforts to enforce the law and ensure public trust.” Thomas J. Holloman, Special Agent in Charge IRS Criminal Investigation added, “A fraud of this magnitude requires a coordinated effort among law enforcement agencies to stop those involved from profiting from their wrongdoing. We are the stewards of our environment and anyone who knowingly pollutes it should be held accountable.”
“Acting Assistant Attorney General Hirsch and U.S. Attorney Walker praised the continued joint efforts of the EPA’s Criminal Investigation Division and the IRS’s Office of Criminal Investigations and the U.S. Coast Guard’s Criminal Investigative Services for their diligent work in the investigation of this matter.” Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina and Trial Attorney Shennie Patel of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division are the prosecutors in charge of the case. Assistant United States Attorney Norman Acker and the Financial Litigation Unit provided significant support to the prosecution team.
Halifax County Man Receives 100 Months Imprisonment for Federal Firearms and Drug ChargesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced jermaine jones , 30, of Roanoke Rapids, to 100 months imprisonment, followed by 5 years of supervised release.
jones was named in an Indictment filed on December 17, 2013, in the Eastern District of North Carolina, charging him with 1 count of possession of a firearm by a felon and 1 count of possession with the intent to distribute a quantity of marijuana. On March 5, 2014, JONES pled guilty to those charges.
According to the investigation, the Halifax County Sheriff’s Office (HCSO) discovered that JONES hadpawned a firearm on April 26, 2012, at a pawn shop located in Roanoke Rapids, North Carolina. Additionally, on March 28, 2013, HCSO deputies, with the assistance of other law enforcement agencies, intercepted and executed a controlled delivery of a package addressed to JONES, in Roanoke Rapids, North Carolina which contained 439.81 grams of marijuana.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Halifax County Sheriff’s Office, the Roanoke Rapids Police Department, the Nash County Narcotics Division, Nash County Sheriff’s Office, and Wilson Police Department. Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
Former Brunswick County Sheriff Charged with Weapons ViolationsRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced today that RONALD EMERY HEWETT, 51, of Supply, North Caolina, had his initial appearance in Wilmington. HEWETT was charged with possession of a firearm by a felon, in violation of Title 18, United States Code 922(g)(1). HEWETT is the former Brunswick County Sheriff who pled guilty to one count of Obstruction of Justice on June 2, 2008.
HEWETT was initially charged in a criminal complaint. As set forth in the affidavit supporting the complaint, multiple firearms were located in HEWETT’S residence on July 9, 2014. HEWETT is a convicted felon and was sentenced to a 16 month term of imprisonment on October 6, 2008.
If convicted, HEWETT faces a maximum penalty of 10 years imprisonment, a $250,000 fine, and 3 years supervised release. The actual sentence would be determined by the sentencing court after consideration of the advisory sentencing guidelines.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) and the Brunswick County Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney Jennifer E. Wells.
The charges contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Fayetteville Man Sentenced to 300 Months for Hobbs Act Robbery & CarjackingRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced LONNELL DEANGELO MCRAE , 27, of Fayetteville to 300 months imprisonment, followed by 5 years of supervised release.
MCRAE was named in an Indictment filed on April 3, 2013, charging him with 7 counts. The Indictment charged MCRAE with 1 count of Hobbs Act Robbery and Aiding and Abetting, 2 counts of Brandishing a Firearm During and in Relation to a Crime of Violence and Abetting and Aiding, 1 count of Carjacking and Aiding and Abetting, 1 count of Possession of a Firearm by a Felon and Aiding and Abetting, 1 count of Possession of a Stolen Firearm and Aiding and Abetting, and 1 count of Possession of a Firearm by a Felon.
On February 3, 2014, MCRAE pled guilty to the Hobbs Act Robbery, Brandishing a Firearm During a Federal Crime of Violence, and to the Carjacking charge.
According to the investigation, MCRAE, armed with afirearmand his co-conspirator, Gregory James Burgess previously sentenced to 168 month imprisonment on April 18, 2014, entered the Little Vegas Sweepstakes, an internet gaming business located in Fayetteville, which is now closed. MCRAE and Burgess forced two victims from one room into another. MCRAE and Burgess tied them up with computer and telephone cords and took the customer’s truck.
At his arrest about a week later for these crimes, MCRAE was found to be in possession of a handgun and ammunition.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Fayetteville Police Department, the Hope Mills Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.
Participants in Oxycodone Prescription Forgery Ring Sentenced to Federal PrisonRead the Press Release
NEW BERN – July 9, 2014 – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Louise W. Flanagan sentenced the final two defendants of a six-defendant federal prescription pill distribution conspiracy. THOMAS FRANCIS PARADIS, 34, of Kinston, NC, was sentenced to 58 months’ imprisonment, followed by three years of supervised release and ordered to pay a $1,000 fine. JESSE LEE HOOD, 26, of Goldsboro, NC, was sentenced to 69 months’ imprisonment, followed by three years of supervised release and ordered to pay a $2,000 fine.
Mr. Walker stated, “Prescription drug abuse is a serious problem and my office will continue to prosecute these cases aggresively. This case is the result of outstanding cooperation between local, state, and federal law enforcement agencies who worked tirelessly to bring these defendants to justice.”
On July 8, 2014, CASEY RYAN O’QUIN, 31, of New Bern, NC, was sentenced to 100 months’ imprisonment, followed by 3 years of supervised released while his wife, CHRISTIAN NICOLE O’QUIN received a sentence of 95 months’ imprisonment followed by 3 years of supervised release on June 3, 2014. The O’QUINs were further ordered to forfeit $33,662 that was seized during a traffic stop on February 1, 2012.
CHRISTOPHER GERALD CHERICO, 26, of Sneads Ferry, NC, was sentenced on April 2, 2014, to 44 months’ imprisonment followed by three years of supervised release and JOSHUA ALAN ILEY, 23, of Longview, TX, was sentenced on November 7, 2013, to 30 months’ imprisonment followed by three years of supervised release.
All of the above defendants pled guilty to conspiring to distribute and possess with the intent to distribute Oxycodone. Investigation revealed that while CASEY O’QUIN and JESSE HOOD were incarcerated together in late 2010, HOOD explained to O’QUIN how to forge prescriptions utilizing a computer, printer, and specialized paper. Following their release from prison in the spring of 2011, HOOD, along with CASEY O’QUIN and his wife NICOLE O’QUIN, began to create and pass fraudulent prescriptions across Eastern North Carolina until HOOD’s arrest on unrelated charges in South Carolina. While HOOD was incarcerated in South Carolina, the O’QUINs recruited PARADIS, CHERICO, ILEY and others as accomplices to assist them in filling the prescriptions they created at pharmacies across North Carolina. After being released from prison in South Carolina, HOOD returned to North Carolina and renewed his participation in the scheme.
PARADIS, CHERICO and ILEY were taken into custody after being identified by law enforcement passing fraudulent prescriptions. HOOD and the O’QUINs were arrested as a result of controlled purchases conducted by law enforcement. At the time of their arrest, the O’QUINs were found to be in possession of $33,662, and three motor vehicles, all of which were seized by law enforcement.
In total, law enforcement was able to identify at least 137 fraudulent prescriptions that were filled at pharmacies in 23 counties across North Carolina as a part of this conspiracy, resulting in the distribution of over 16,000 Oxycodone pills.
District 3B District Attorney Scott Thomas said, “Illegal possession and distribution of prescription pain pills is a major threat. It leads to addiction, theft, violence, injury and even death. Law enforcement agencies and prosecutors are working together at the local, state and federal levels to fight these crimes. Every drug dealer sentenced to prison results in fewer pills in our communities. We will continue to conduct investigations and prosecutions targeting these offenders who engage in these activities.”
Investigation of this case was conducted by the Cape Carteret Police Department, Carteret County Sheriff’s Office, Cary Police Department, Craven County Sheriff’s Office, Greenville Police Department, Havelock Police Department, Holly Ridge Police Department, Jacksonville Police Department, Naval Criminal Investigative Service, New Bern Police Department, Onslow County Sheriff’s Office, Pamlico County Sheriff’s Office, Pitt County Sheriff’s Office, State Bureau of Investigation, Surf City Police Department, and the Wayne County Sheriff’s Office. Special Assistant United States Attorney Augustus Willis represented the government and was assisted in this case by Special Assistant United States Attorney Glenn Perry. Mr. Willis is a prosecutor with the District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties, while Mr. Perry is a prosecutor with the District 3-A District Attorney’s Office serving Pitt County. District Attorneys Scott Thomas and Kimberly Robb have assigned them to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their positions are funded through a grant provided by the Governor’s Crime Commission.
In addition to the District Attorney’s Offices of Districts 3-A and 3-B, the prosecution of this matter was also assisted by the District Attorney’s Offices of Districts 4-B (Duplin, Jones, Onslow and Sampson) and 10 (Wake).