Eastern District of North Carolina
Press releases recorded for this federal judicial district.
Fayetteville Resident Sentenced for Receipt of Child PornographyRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court Chief United States District Judge James C. Dever III, sentenced DONALD HIGGINS , 64, originally from Rochester, New York, to 180 months imprisonment, followed by 10 years of supervised release and he is required to register as a Sex Offender.
A Federal Grand Jury returned a Criminal Indictment on July 17, 2013. On October 28, 2013, HIGGINS pled guilty to one count of receipt of child pornography.
According to the investigation, during the execution of a search warrant on August 6, 2012, agents located several books containing child pornography along with two computers, a hard drive multiple media storage devices and documentation giving instructions on how to sexually molest children. Forensic examination of the seized items revealed more than 60,000 images and an undetermined number of videos depicting child pornography.
Investigation of this case was conducted by the Fayetteville Police Department. 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.
Durham Man Sentenced to 30 Years for Federal Firearm OffensesRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today, Senior United States District Judge Malcolm J. Howard sentenced IRESHIA DONTE SUMMERS aka ERIC SUMMERS, 35, of Durham, North Carolina, to 360 months imprisonment followed by 5 years of supervised release.
On July 10, 2013, SUMMERS pled guilty to three federal charges: Conspiracy to possess stolen firearms and ammunition, in violation of Title 18, United States Code, Section 371; Possession of firearm in a school zone; and aiding and abetting, in violation of Title 18, United States Code, Sections 922(q)(2)(A),924, and 2; felon in possession of a firearm and ammunition in violation of Title 18, United States Code, Sections 922(g)(1) and 924.
According to the investigation, on May 31, 2012, SUMMERS and his co-conspirator, Jason Lemar Medlyn broke into two residences in Granville County and stole, among other things, personal property, firearms and ammunition. The defendants were discovered while still at the second residence by the homeowner. A Granville County Sheriff’s Deputy responding to the call regarding the residential break in pursued two males from Durham, NC, later identified as SUMMERS and Medlyn. SUMMERS was the passenger in the fleeing vehicle and he fired shots at the pursuing deputy. A North Carolina State Highway Patrolman picked up the chase in Wake County and SUMMERS then fired shots at the trooper.
The car sped through two school zones in Durham before crashing. Three hand guns were found near the vehicle along with a stolen television, Nooks, and jewelry.
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 Granville County Sheriff’s Office, the Durham Police Department, and the FBI Raleigh-Durham Safe Streets Task Force comprised of the North Carolina State Highway Patrol, Raleigh Police Department, Durham Police Department, Durham County Sheriff’s Office, North Carolina Alcohol Law Enforcement, Cary Police Department, and the Garner Police Department. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.
Court Sends Convicted Identity Thief Back to Prison for 11 YearsRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that today in federal court Senior United States District Judge Malcolm J. Howard sentenced JOKWAN LAMAR HARVEY, 32, of Magnolia, to serve a total of 132 months in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A, and Use of Unauthorized Access Devices, in violation of Title 18, United States Code, Section 1029(a)(2), and based on the revocation of a term of supervised release on a prior charge of Aggravated Identity Theft. HARVEY was also ordered to pay $51,250.35 to various victims of his fraud as restitution.
The evidence showed that in 2012, shortly after being released from prison on a prior charge of Aggravated Identity Theft, and while on supervised release, HARVEY engaged in a scheme to benefit from the fraudulent use of debit and credit card accounts. Evidence presented at the sentencing hearing demonstrated that HARVEY used stolen personal information to make and attempt to make applications for dozens of credit card accounts. HARVEY then had these cards mailed to various “mail drop” locations where he acquired them from associates. Evidence further showed that HARVEYused the fraudulent credit cards to make various purchases for the benefit of himself and others.
Evidence presented at the sentencing hearing showed that after being arrested and held in the Duplin County Jail, HARVEY passed an encoded message to his sister, instructing her to destroy one of the computers that he used to commit the fraud. Kitrina Diane Rhodes, previously sentenced for her role in assisting HARVEY, admitted to throwing the computer in a dumpster for her brother. When investigators eventually recovered HARVEY’s laptop, they analyzed the contents and found further stolen account numbers and other evidence of the fraud. At sentencing the court found that the total losses intended by HARVEY exceeded $200,000. The court also found that HARVEY’s crime involved more than 20 victims, including individuals and banks.
Investigation of this case was conducted by the United States Secret Service, with the assistance of the Duplin County Sheriff’s Office and the Warsaw Police Department. Assistant United States Attorney William M. Gilmore represented the United States.
Fast Food Restaurant Robbers Sentenced for Firearms OffensesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that TREVIN MAURICE GIBSON of Greenville, MICHAEL RONDALE GIBSON of Greenville and DESHAUN ENTREA SPRUILL of Robersonville were each sentenced today resulting from their earlier guilty pleas to firearms charges. The charges involved a string of robberies of fast food restaurants in and around Greenville from September 2011 through January 2012. The robberies involved outlets of Bojangles, KFC, Subway, Burger King, McDonalds and Popeyes.
In November, 2013, each defendant entered a plea before Chief U.S. District Judge James C. Dever, III to two counts of using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). Judge Dever sentenced TREVIN GIBSON to 43 years in prison. TREVIN GIBSON was also sentenced to 2 additional years in prison for violating the release terms from a prior federal conviction, resulting in a total sentence of 45 years in prison. TREVIN GIBSON was also ordered to pay $21,336 in restitution and to be supervised for 5 years following his release. MICHAEL GIBSON, Trevin Gibson’s brother, was sentenced to 36 years in prison and ordered to pay $10,061 in restitution. He was also ordered to be supervised for 5 years following his release. SPRUILL was sentenced to 33 years in prison, and ordered to pay $20,251 in restitution. He will also be supervised for 5 years following his release.
Two other defendants, Prentise Wilkins and Marcus Garrett, will be sentenced at a later date.
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, the Greenville Police Department, the Williamston Police Department, the Robersonville Police Department, the Wilson Police Department, the Farmville Police Department, the Elizabeth City Police Department, the Goldsboro Police Department, the Snow Hill Police Department, and the Pitt County Sheriff’s Office. Assistant United States Attorney John Bennett is prosecuting the case.
Wilmington Tax Preparer Sentenced to 57 Months for Making False Statements to IRS and the North Carolina Banking CommissionRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge W. Earl Britt sentenced Eugenio M. David-Martinez , age 55, of Wilmington, North Carolina, to 57 months imprisonment, followed by 3 years of supervised release.
David-martinez was named in a two-count Criminal Information filed on April 22, 2013, charging him with Making False Statements to a Federal Agency and Making False Claims of US Citizenship. On July 11, 2013, david-martinez pled guilty to those charges.
According to the investigation, DAVID-MARTINEZ came to the United States from Cuba in 1980. Since then, he has illegally resided in the United States. As a Cuban national, however, he is not deportable.
Since at least January 2007, DAIVD-MARTINEZ has provided tax and accounting services, in Wilmington, North Carolina. The majority of his clients were also residing in the United States illegally. In order to file income tax returns, DAVID-MARTINEZ’s clients required Individual Taxpayer Identification Numbers, otherwise referred to as ITINs. To obtain an ITIN, the applicant must submit proof of identification and a tax reason for filing a return, which includes earning wages in the United States. The IRS authorizes individuals, known as acceptance agents, to assist applicants in the ITIN process. To become an acceptance agent, the individual must prove that he is a citizen or a legal resident and pass a suitability background check. In his applications to become an acceptance agent, DAVID-MARTINEZ falsely stated that he was a US citizen and bypassed the suitability background check by falsely representing he had previously been authorized to practice before the IRS as an Enrolled Agent.
For the years 2007 through 2012, DAVID-MARTINEZ filed approximately 18,536 ITIN applications for which he received $15 per application. He also filed approximately 12,985 income tax returns for individuals with ITINs for which he charged on average $90 per return.
DAVID-MARTINEZ also negotiated the IRS refund checks issued to the ITIN taxpayers. To advertise or offer this check cashing service for a fee, DAVID-MARTINEZ required a check cashing license issued by the North Carolina Office of the Commissioner of Banks. The application required DAVID-MARTINEZ to indicate his country of citizenship. DAVID-MARTINEZ falsely claimed he was a US citizen.
An integral part of the IRS-Criminal Investigation's mission involves detecting and catching fraudulent tax refund claims,” stated Jeannine A. Hammett, Internal Revenue Service-Criminal Investigation Special Agent in Charge. “The IRS-Criminal Investigation will continue to aggressively pursue those who file false tax returns to claim tax refunds for which they are not entitled.”
The Investigation of this case was conducted by the IRS-Criminal Investigation and the US Department of Homeland Security. Assistant United States Attorney Susan Menzer represented the government.
Owner of Rocky Mount Based Tax Return Preparation Business Sentenced to 100 MonthsRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge W. Earl Britt sentenced LARRY D. HILL, JR. , age 41, of Rocky Mount, North Carolina, to 100 months imprisonment, followed by three years of supervised release.
"During tax filing season, return preparers and taxpayers should be aware of the serious consequences facing those who aid or assist in the filing of fraudulent tax returns," said Special Agent in Charge Jeannine A. Hammett, IRS-Criminal Investigation. "Those who fly in the face of the tax laws face investigation, prosecution, and if convicted, significant prison sentences and substantial fines. Today's sentence sends a strong message to unscrupulous return preparers who think they can get away with tampering with our nation's tax system."
HILL was named in a Criminal Information filed on April 29, 2013, charging him with one count of conspiring to submit false claims for federal income tax refunds to the IRS, and one count of filing a false 2010 federal income tax return. On August 5, 2013, HILL pled guilty to the charges.
According to the investigation, HILL owned and operated Hill’s Tax Service (HTS), a tax return preparation business which, at various times, maintained offices in Rocky Mount, Farmville, Scotland Neck, Hollister, and Wilson. Between 2010 and 2012, HILL and his co-conspirators filed well over 2,000 federal income tax return for HTS customer that claimed, collectively, over $14 million in tax refunds. A significant number of the HTS returns reported materially false information – including false dependents, income, and withholdings – in order to maximize the earned income tax credit and otherwise cause the issuance of inflated refunds. HILL and his co-conspirators pocketed a portion of every fraudulent tax refund that was issued. According to the investigation, HILL profited the most from the long-running scheme, collecting, on average, $1,000 or more from each unlawful refund.
The investigation of this case was conducted by the Internal Revenue Service-Criminal Investigation. The case was prosecuted by Assistant United States Attorney Adam F. Hulbig
Fourth Circuit Affirms Convictions of Boyd DefendantsRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today, the United States Court of Appeals for the Fourth Circuit affirmed the convictions and sentences of defendants Mohammad Omar Aly Hassan, Ziyad Yaghi, and Hysen Sherifi, who were charged and convicted as a part of United States v. Boyd, et al. in the Eastern District of North Carolina. Mr. Walker stated, “This decision not only affirms the convictions and sentences of these individuals, but it affirms the dedication of the many agencies involved in this investigation and prosecution to protect our nation from harms both foreign and domestic.”
The issues raised by the defendants included the sufficiency of the evidence, First or Second Amendment rights, whether portions of the government’s evidence were improperly admitted and defendants’ evidence improperly excluded, whether probable cause existed for surveillance authorized under the Foreign Intelligence Surveillance Act, and sentencing challenges including the imposition of the terrorism enhancement set forth under the United States Sentencing Guidelines. The Fourth Circuit rejected each of these challenges and went further to state: “The laudable efforts of law enforcement and the prosecutors have ensured that, on this occasion at least, we will not be left to second-guess how a terrorist attack could have been prevented.”
The indictment in United States v. Boyd, et al. alleged that, as part of the conspiracy, the multiple defendants in the case prepared themselves to engage in violent acts and were willing to die as martyrs. They also offered training in weapons and financing, helped arrange overseas travel and contacts so others could wage violent acts overseas. In addition, as part of the conspiracy, the defendants raised money to support training efforts, disguised the destination of such monies from the donors, obtained assault weapons, and trained in military tactics. Some defendants also radicalized and recruited others to believe that violent acts were a personal religious obligation.
On October 13, 2011, after a month-long trial, a federal jury convicted Hassan, Yaghi, and Sherifi. Yaghi and Sherifi were convicted on all counts, while Hassan was acquitted of conspiring to carry out attacks overseas, but convicted of providing material support to terrorists, in violation of Title 18 United States Code, Section 2339A. Sherifi was sentenced to 45 years’ imprisonment. Yaghi was sentenced to 31 years and six months of imprisonment. Hassan was sentenced to 15 years’ imprisonment.
The co-defendants in this case included Daniel Patrick Boyd, Dylan Boyd, Zakariya Boyd, and Anes Subasic. Zakariya Boyd pled guilty on June 7, 2011, to one count of Conspiracy to Provide Material Support to Terrorists, in violation of Title 18, United States Code, Section 2339A and received a sentence of nine years’ imprisonment. On September 14, 2011, Dylan Boyd pled guilty to one count of Aiding and Abetting a Conspiracy to Provide Material Support to Terrorists, in violation of Title 18, United States Code, Section 2339A, and received a sentence of eight years’ imprisonment. On February 9, 2011, Daniel Patrick Boyd pled guilty to one count of Conspiracy to Provide Material Support to Terrorists, in violation of Title 18, United States Code, Section 2339A and one count of Conspiracy to Murder, Kidnap, Maim and Injure Persons in a Foreign Country, in violation of Title 18, United States Code, Section 956(a). Daniel Boyd’s sentencing was held in abeyance until the conclusion of Subasic’s trial. On June 14, 2012, Subasic was found guilty of Conspiracy to Provide Material Support to Terrorists, in violation of Title 18, United States Code, Section 2339A and Conspiracy to Murder, Kidnap, Maim and Injure Persons in a Foreign Country, in violation of Title 18, United States Code, Section 956(a). Subasic represented himself at his jury trial. On August 24, 2012, Subasic was sentenced to 30 years’ imprisonment, and Daniel Boyd was sentenced to 18 years’ imprisonment. Subasic’s appeal is pending and will be argued separately.
Investigation of this case was conducted by the Federal Bureau of Investigation, Charlotte Division, Raleigh 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, NC State Bureau of Investigation, and NC Department of Public Safety (NC State Highway Patrol and NC Alcohol Law Enforcement). The prosecution on appeal was handled by Assistant United States Attorneys Jason Kellhofer and Kristine Fritz. The prosecution in district court was handled by Assistant United States Attorneys John Bowler and Barbara Kocher, and by then-Trial Attorney Jason Kellhofer of the Counterterrorism Section in the Justice Department’s National Security Division.
Woman Sentenced to Prison for Lying to FBI and IRS in Connection with Mortgage Fraud InvestigationRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court on January 27, 2014, Chief United States District Judge James C. Dever, III sentenced LILIANA DELIA DEIAC, 43, of Jamaica, NY, to 18 months in prison, followed by 3 years of supervised release. She pled guilty to Making Material False Statements, in violation of Title 18, United States Code, Section 1001. DIEAC was also ordered to make restitution in the amount of $674,856.94 to Wells Fargo Bank.
On May 18, 2010, DEIAC was questioned by special agents with the Internal Revenue Service Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI). At that time, IRS-CI and the FBI were investigating a fraudulent property flipping scheme committed by, among others, Arthur Barnes and David Johnson, who have already been sentenced to prison. DEIAC was questioned because evidence showed that DEIAC was involved in the purchase of a $2 Million property at 1016 Clear Creek Farm Drive in Raleigh using her husband’s name and credit, and without the husband’s knowledge or consent. Participants in the scheme failed to make mortgage payments on the property, resulting in foreclosure and losses to Wells Fargo Bank in the amount of $674,856.94.
When questioned by the FBI and IRS-CI, DEIAC lied about the circumstances of her involvement in the transaction. Specifically, DEIAC told special agents that when she executed loan and closing documents, she believed that she was leasing a building located in New York. In fact, DEIAC was aware that the multimillion dollar transaction at 1016 Clear Creek Farm Drive in Raleigh was a purchase, using her husband’s name and credit. The investigation established that DEIAC participated in the transaction based upon promises of cash kickbacks from others who orchestrated the deal.
“IRS Criminal Investigation is committed to uncovering fraud and abuse in all facets of the housing market - a market upon which so many American families have pinned their hopes and their futures for so many years,” said Special Agent in Charge, Jeannine A. Hammett, Charlotte Field Office. “I want to assure the American public that IRS-CI will not rest until the tide of this criminal activity is turned.”
On August 6, 2013, DEIAC pled guilty to Count 2 of the Indictment which charged her with Making Material False Statements, in violation of Title 18, United States Code, Section 1001.
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 Government.
National Appraisal Instructor and Associate Sentenced for Their Role in Mortgage FraudRead the Press Release
RALEIGH – The United States Attorney’s Office announces that in federal court yesterday Chief United States District Judge James C. Dever III sentenced former real estate appraiser LARRY MAX MCDANIEL, 70, of Vienna, West Virginia, to 66 months imprisonment followed by 5 years of supervised release. The Court also sentenced JACKIE GALE WEAVER, JR., 50, of West Hamlin, West Virginia, to 21 months imprisonment, followed by 3 years of supervised release. The Court further ordered that MCDANIEL and WEAVER make total restitution of $5,809,417.94 to various banks, lenders, and other victims.
The charging documents and subsequent evidence in the cases showed that between 2002 and 2006, an individual identified as James Thomas Webb(previously sentenced to 237 months in prison) was operating a company identified as Alpine Properties, LLC. Webb promised investors that he and Alpine Properties would use investor money to purchase homes at a low value, renovate the homes, and then sell them to first-time home buyers for a higher value.
The evidence established that MCDANIEL, a licensed real estate appraiser residing in West Virginia, and WEAVER, a former appraisal associate of MCDANIEL, began to falsify appraisals for Webb and Alpine Properties. On the appraisals, MCDANIEL was listed as the North Carolina appraiser who performed each appraisal. In fact, however, MCDANIEL did not visit the properties, nor did he create the appraisal documents. Instead, the information that was listed in the appraisal reports, including measurements, sketches, and photographs, all came from WEAVER or employees of Webb and Alpine Properties.
The evidence also established that MCDANIEL did not draft, print, or execute the appraisals that bore his name and official seal; WEAVER performed those tasks, often from within Webb’s offices at Alpine Properties. Nevertheless, MCDANIEL invoiced and received payment for many of the appraisals. MCDANIEL also wrote detailed letters to banks and lenders to support the value assigned in his appraisal documents, even though MCDANIEL had never, in fact, been to the properties.
The Superseding Indictment alleges, and evidence in court ultimately showed, that WEAVER created and MCDANIEL authorized approximately 200 false appraisals in the manner described above.
MCDANIEL pled guilty to Making a False Statement to Influence a Bank on a Loan and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1014 and 2. WEAVER pled guilty on September 19, 2011, to Conspiracy to Commit Wire Fraud, Bank Fraud, and to Make False Statements to Influence Financial Institutions on Loans.
Investigation of this case was conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, the United States Department of Housing and Urban Development Office of the Inspector General, and the Federal Deposit Insurance Corporation Office of the Inspector General, with the assistance of the North Carolina Appraisal Board. Assistant United States Attorney William M. Gilmore represented the United States.
Maryland Man Sentenced for Raleigh Bank RobberyRead 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 DELLONTE RASHAUN SEBURN, 35, of Hyattsville, Maryland, to 132 months of imprisonment and 3 years of supervised release. SEBURN previously pled guilty on October 8, 2013 to one count of Bank Robbery.
On September 24, 2012, SEBURN wastransported by taxi to the Mechanics and Farmers Bank in Raleigh, North Carolina, after traveling from Maryland the night before. SEBURN entered the bank and handed a note to the teller demanding money. He received $1,260 prior to fleeing the bank in the awaiting taxi. On October 1, 2012, SEBURN was arrested in Maryland.
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 FBI Raleigh-Durham Safe Streets Task Force comprised of the Cary Police Department, Durham Police Department, Durham County Sheriff’s Office, Garner Police Department, N.C. Alcohol Law Enforcement, N.C. State Highway Patrol, and the Raleigh Police Department. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.
Snow Hill Man Sentenced for Selling Crack and Firearms OffensesRead 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 JOEL DEVON WILLIAMS, 27,of Snow Hill, North Carolina, to 72 months in prison and 3 years of supervised released for distribution of crack cocaine and possession of firearm by a convicted felon. WILLIAMS previously pled guilty to these charges on October 28, 2013.
On October 25, 2011, the Greenville Police Department used an informant to buy a Smith & Wesson .45 caliber handgun from WILLIAMS. On October 27, 2011, the Greenville Police Department used an informant to buy an SKS assault rifle and approximately 19 grams of crack cocaine from WILLIAMS. WILLIAMS was prohibited from possessing firearms due to his prior state felony convictions of conspiracy to commit robbery with a dangerous weapon and possession of a firearm by a convicted felon.
The investigation further revealed that between June 6 and June 27, 2011, co-defendant BRANDON JAMAL GREEN purchased 3 firearms that he later provided to his co-defendant, JOEL DEVON WILLIAMS, a convicted felon. During the purchases, GREEN signed paperwork under oath swearing that the firearms were for his use. After GREEN gave the firearms to WILLIAMS, GREEN filed reports with the Greenville Police Department and Winterville Police Department alleging that the firearms were stolen. On January 27, 2012, one of the firearms purchased and reported stolen by GREEN was seized during a drug investigation in Washington, D.C. GREEN pled guilty to charges arising from the investigation and was sentenced to 12 months and one day on January 6, 2013.
The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives 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.
Morrisville Man Sentenced to Years for Receiving Child PornographyRead 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 BRUCE WILLIAM NOTT , 58, to 180 months imprisonment, followed by a life-term of supervised release and he is required to register as a Sex Offender.
A Federal Grand Jury returned a Criminal Indictment on May 8, 2013. On October 1, 2013, NOTT pled guilty to one count of receiving child pornography.
According to the investigation, on October 7, 2010, an investigation was initiated by local law enforcement regarding the possible sexual assault of a four-year-old. A search warrant was obtained and executed at NOTT’s residence where several computers, thumb drives, cameras, and cell phone were seized. A forensic examination of the electronic equipment revealed 388 images of child pornography.
Investigation of this case was conducted by the Navassa Police Department, the Wilmington Police Department, the State Bureau of Investigation and the Federal 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.
Two Indicted for Robbing Bank in Oriental, North CarolinaRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that on January 15, 2014, a federal grand jury in Greenville, North Carolina returned a two-count indictment charging DAVID McARTHUR KING, 24 of New Bern and THOMAS LEE CUTHBERTSON, JR., 24 also of New Bern with armed bank robbery and aiding and abetting in violation of Title 18, United States Code, Section 2113(a) and (d) and 2 and the use or carrying of a firearm, by brandishing, during and in relation to a crime of violence, or possession in furtherance thereof, and aiding and abetting in violation of Title 18, United States Code, Section 924(c)(1)(A) and 2.
The evidence shows that on December 2, 2013 KING and CUTHBERTSON robbed the First Citizens Bank in Oriental, North Carolina of approximately $33,707.90. During the course of the robbery, the defendants did assault various persons and put into jeopardy their lives by means and use of a handgun.
If convicted, KING and CUTHBERTSON face a maximum penalty of 25 years imprisonment, a $250,000 fine, and 5 years of supervised release for a conviction of the bank robbery charge and life imprisonment, with a mandatory sentence of 7 years consecutive to any other sentence served, a $250,000 fine, and 5 years of supervised release for the use or carrying of a firearm, by brandishing, during and in relation to a crime of violence charge. 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 Federal Bureau of Investigation, the New Bern Police Department and the Pamlico County Sheriff’s Office. Assistant United States Attorney John Bennett is prosecuting the case for the government.
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.
Former Raleigh Real Estate Developer Receives 27 Years for Multi-million Dollar Fraud Upon Investors and BanksRead the Press Release
RALEIGH – The United States Attorney’s Office announces that in federal court yesterday Chief United States District Judge James C. Dever III sentenced former real estate developer JAMES THOMAS WEBB, 52 of Leland to 327 months imprisonment followed by 5 years of supervised release. The Court further ordered that WEBB make total restitution of $11,946,739.80 to his victims.
“James Webb betrayed the trust of investors and left neighborhoods in two states blighted with dilapidated homes. His lengthy prison sentence emphasizes the severity and impact of this type of crime on our communities and should reassure the public of the FBI’s commitment to hold these offenders accountable,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
“The FDIC OIG is pleased to join the U.S. Attorney’s Office and our law enforcement colleagues in announcing the sentencing of this individual whose criminal actions caused serious harm to the community, individual investors, and financial institutions. Mr. Webb’s sentencing should deter others who may pursue criminal behavior. This sentencing confirms that those who undermine the integrity of the financial system will be brought to justice and held accountable for their crimes,” commented Jason T. Moran, Special Agent in Charge of the Federal Deposit Insurance Corporation’s Office of Inspector General.
At the sentencing hearing evidence established that between 2002 and 2006 WEBB operated various real estate companies, including Alpine Properties, LLC and Webb Builders, LLC for a profit. WEBB, who took out a full page advertisement in the Triangle Business Journal in 2004, promised investors in multiple states quick, large, and safe financial gains by investing money with him. WEBB promised investors that he would use their money to purchase, renovate, and resell properties to first-time home buyers in various states, including North Carolina, Virginia, and Tennessee. WEBB also convinced investors located in various states to purchase properties from his companies. The properties were supposed to have been fully renovated and worth approximately $65,000 each. WEBB further promised to maintain the properties for investors and collect rent for them which would be used to fund mortgage payments.
The evidence established that despite his alleged philanthropic and humanitarian objectives, WEBB carried out a fraud upon both the investors who gave cash to WEBB and the banks and lenders who WEBB caused to disburse loan proceeds. Evidence showed that the properties purchased by Webb’s investors were not fully renovated as WEBB had promised. Evidence also showed that WEBB took money from one investor to pay other investors, instead of using all of the money for the promised renovations. WEBB also failed to maintain and rent the properties, as he promised. In spite of this, the evidence showed that WEBB lived lavishly, residing in a multi-million dollar mansion, driving expensive vehicles including a Bentley, traveling extensively, and otherwise paying himself handsomely.
The evidence further established that WEBB conspired with former attorney, Amy Robinson, to systematically falsify closing statements associated with properties WEBB caused investors to purchase. The Government presented evidence that instead of paying off prior lienholders out of the sales proceeds, as represented on the settlement statements, Robinson diverted the funds to the benefit of WEBB.
The evidence also showed that WEBB conspired with a former West Virginia appraiser, Larry Max McDaniel, and his associate, Jackie Gale Weaver, to falsify the appraisals associated with the properties purchased by investorsAlthough the appraisals stated that McDaniel physically inspected the properties, in fact, McDaniel never went to any of the more than 200 properties that WEBB was supposed to have renovated. Instead, the appraisals and their contents were generated by Weaver, with the assistance of WEBB’s employees and contractors. To justify WEBB’s requested value of $65,000 per property; McDaniel and Weaver frequently used other WEBB properties as comparable sales.
Evidence established that investors began to have difficulty reaching WEBB when WEBB failed to pay them the promised returns, or when investors began to receive notices from city governments regarding the state of the properties. The Government presented evidence that WEBB abruptly left his north Raleigh mansion for Florida in 2004, where he eventually stopped taking calls from his investors. Even after causing catastrophic losses to his victims, and leaving neighborhoods blighted with abandoned homes, WEBB continued to market his investment strategies in Florida, on the internet, and in a book he authored, entitled “Save Your Neighborhood.”
Although WEBB took the witness stand at the sentencing hearing in his defense, he admitted upon cross examination that he committed the fraud, and that all of the losses alleged by the United States were a foreseeable consequence of his crime. Multiple investors from North Carolina, South Carolina, Georgia, and California also appeared and spoke out against WEBB at the hearing.
Investigation of this case was conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, the United States Department of Housing and Urban Development Office of the Inspector General, and the Federal Deposit Insurance Corporation Office of the Inspector General, with the assistance of the North Carolina Appraisal Board. Assistant United States Attorney William M. Gilmore prosecuted the case.Williamston Felon Sentenced for Possessing A FirearmRead 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 TERRANCE DISHON DANIELS, 21,of Williamston, North Carolina, to 57 months in prison followed by 3 years of supervised released for possessing a firearm after having been convicted of a felony. DANIELS previously pled guilty to this charges on September 30, 2013.
DANIELS was arrested on December 18, 2012, by the Williamston Police Department after DANIELS fired several shots from a .38 caliber revolver while sitting in a car parked on Middle Street in Williamston. The investigation revealed that DANIELS and another person were trespassing through the backyards of residences on West Main Street. After several residents told DANIELS and the other person to leave their yard, DANIELS and the other person ran to a Ford Taurus parked on Middle Street. DANIELS fired several shots after entering the car. Officers from the Williamston Police Department, the Martin County Sheriff’s Office and the North Carolina Highway Patrol found DANIELS in Holly Ridge Mobile Home Park after DANIELS exited the Taurus. The firearm fired by DANIELS, a Tiger Titan .38 caliber revolver, was found on the ground near the Taurus. DANIELS was prohibited from possessing a firearm by virtue of his prior felonious assault conviction.The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Williamston 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.
Developer Sentenced to 96 Months in Prison for His Role in Mortgage Fraud SchemeRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today before Chief United States District Judge James C. Dever, III, DAVID LEWIS JOHNSON, JR. of Cary, NC, was sentenced to a 96 month term of imprisonment, followed by 5 years of supervised release, on charges of Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 1349. JOHNSON was also ordered to pay $2,413,605.89 to 11 banks and lenders who were victims of the fraud.
With respect to the charge of Conspiracy to Commit Mail, Wire, and Bank Fraud, JOHNSON, operating through E-Z N Homes, engaged in a real estate “flipping” scheme. JOHNSON and others utilized various schemes to fraudulently obtain more than 100 properties with total mortgage loans in excess of $20,000,000. The defendant used straw buyers to purchase properties in exchange for a kickback from the loan proceeds. JOHNSON also fabricated investment statements to make it appear that straw buyers had, in some instances, one million dollars in assets. In fact, the straw buyers recruited by JOHNSON did not possess the income or assets to support the loans obtained in their names.
As a result of the scheme and JOHNSON’s conduct, banks and lenders issued loans to the conspirators in the amount of approximately $9.1 million, which resulted in $3.4 million in actual losses to the banks and lenders.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.
Two Sentenced for Fayetteville Taco Bell RobberiesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, United States District Judge Terrence W. Boyle sentenced William Franklin Byford, III, 33, of Bunnlevel, North Carolina to 171 months imprisonment followed by 3 years of supervised release and CRISTOPHER DEAN GILBERT , 24, of Fayetteville, North Carolina to 181 months imprisonment followed by 3 years of supervised release.
BYFORD and GILBERT pled guilty on October 3, 2013 to one count of Conspiracy to Interfere with Commerce by robbing four Taco Bell Restaurants in Fayetteville, in violation of Title 18, United States Code, Section 1951(b), and one count of Using, Carrying, and Brandishing a Firearm During and in Relation to a Crime of Violence and Aiding and Abetting, in violation of Title 18, United States Code, Sections 924(c)(1)(A), 924(c)(1)(A)(ii), and 2.
According to the investigation, BYFORD and GILBERT committed armed robberies of four Taco Bells in Fayetteville from October 18, 2012 through December 6, 2012. GILBERT had worked as a manager of a Taco Bell and was familiar with the day-to-day operations of the establishments. GILBERT committed the robberies while BYFORD, who was paralyzed and confined to a wheel chair, served as the get-away driver in a car that had been modified to be operated by hand. They equally divided the proceeds from the robberies.Investigation of this case was conducted by the Fayetteville Police Department, the Bureau of Alcohol, Tobacco, Firearms, & Explosives, and the Federal Bureau of Investigation. Assistant United States Attorney Dennis Duffy represented the government.
Morrisville Man Sentenced to 25 Plus Years for Child PornographyRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that yesterday in federal court, United States District Judge Louise W. Flanagan sentenced NATHANIEL BELTRAN GRINSTEAD , 38, to 306 months imprisonment, followed by a lifetime of supervised release.
A Federal Grand Jury returned a Criminal Indictment on May 1, 2012. On February 12, 2013, GRINSTEAD pled guilty to one count of manufacturing/producing child pornography.
According to the investigation, on October 24, 2011, the Morrisville, North Carolina, Police Department received information from school officials regarding several incidents of sexual abuse. Evidence from a cell phone and home computer seized at GRINSTEAD’s residence revealed images of the sexual abuse of minors.
Investigation of this case was conducted by the Morrisville Police Department and the Federal 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.
Winterville Man Sentenced for Making False Statements While Purchasing FirearmsRead 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 BRANDON JAMAL GREEN, 24,of Winterville, North Carolina, to 12 months in prison and 3 years of supervised released for making false statement to a federally licensed firearms dealer during the purchase of firearms. GREEN previously pled guilty to this charge on September 15, 2013.
The investigation revealed that between June 6 and June 27, 2011, GREEN purchased 3 firearms that he later provided to his co-defendant, Joel Devon WILLIAMS, a convicted felon. During the purchases, GREEN signed paperwork under oath swearing that the firearms were for his use. After GREEN gave the firearms to WILLIAMS, GREEN filed reports with the Greenville Police Department and Winterville Police Department alleging that the firearms were stolen. On January 27, 2012, one of the firearms purchased and reported stolen by GREEN was seized during a drug investigation in Washington, D.C. WILLIAMS pled guilty to charges arising from the investigation but WILLIAMS has yet to be sentenced. The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenville Police Department.
Drug Trafficker Sentenced in Operation “No Quarter”Read 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 JESUS TORRES PORTILLO, 23, of Burlington, North Carolina, to 120 months of imprisonment and 3 years of supervised release. PORTILLO previously pled guilty to conspiracy to distribute 5 kilograms or more of cocaine.
On November 9, 2011, PORTILLOarranged for approximately 5 kilograms of cocaine to be delivered to a DEA informant in Greenville, N.C. The two couriers were arrested after approximately 5 kilograms of cocaine were found in the trunk of the car they were driving. On November 14, 2013, PORTILLO arranged for approximately 3 kilograms of cocaine to be delivered to the informant in Goldsboro, N.C. PORTILLO was arrested after approximately 3 kilograms of cocaine were found in the truck in which he was a passenger. Further investigation revealed that, in addition to the approximate 8 kilograms of cocaine seized, PORTILLO was responsible for the distribution of 3,100 pounds of marijuana.
The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. Law enforcement officials seized drugs with a street value $4.6 million, including 127 kilograms of cocaine, 53 pounds of crystal methamphetamine, 160 pounds of marijuana, and 32 grams of heroin. Additionally, $2.2 million in U.S. Currency, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Carteret, Craven and Pamlico Counties District Attorney’s Office. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.
Woman Sentenced for Commercial Robberies & Weapon OffenseRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Louise W. Flanagan sentenced NICOLE ESTELLA JONES, 21, to 192 months imprisonment followed by 5 years of supervised release.
On March 11, 2013 a Complaint was filed charging JONES with one count of conspiracy to rob a business engaged in interstate commerce in violation of Title 18, United States Code, Section 1951; and one count of brandishing a firearm in furtherance of a crime of violence and aiding and abetting in violation of Title 18, United States Code, Sections 924c(1)(A) and 2. On June 14, 2013 JONES pled guilty to these charges.
The investigation revealed that on April 14, 2011, JONES, along with co-conspirators entered the Exxon Gas Station located at 1200 New Bern Avenue, Raleigh and robbed the business. During the robbery a clerk and customer were physically assaulted by the robbers. Later that same day, JONES, along with her co-conspirators robbed the McDonald’s restaurant located at 5016 Spring Forest Road, Raleigh. Next, on April 22, 2011, JONES, along with co-conspirators robbed the Hampton Inn located at 1001 Wake Towne Road, in Raleigh of US currency. Later that same evening, JONES and her co-conspirators, robbed the Courtyard Marriott located at 3908 Arrow Drive, in Raleigh of US currency and an employee’s laptop computer. On April 27, 2011, JONES and her co-conspirators robbed the Wingate Inn located at 2610 Westinghouse Blvd, Raleigh. JONES returned to California a few days after this robbery. A firearm was used during all of these robberies. On March 11, 2013, JONES was arrested by federal authorities in Hemet, California and was transported back to North Carolina for sentencing.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives-Raleigh, the Raleigh Police Department, and the City-County Bureau of Identification. Assistant United States Attorney Ethan A. Ontjes prosecuted the case for the government.
U.S. Attorney’s Office for the Eastern District of North Carolina Collects $17,584,288.83 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
RALEIGH - U.S. Attorney Thomas G. Walker announced today that the Eastern District of North Carolina collected $17,584,288.83 in criminal and civil actions in Fiscal Year 2013. The Office collected $2.5 million more than the total amount appropriated to run the entire office for the fiscal year.
Additionally, the Eastern District of North Carolina worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $8,103,269.75 in cases pursued jointly with these offices. Of this amount, $10,182.59 was collected in criminal actions and $8,093,087.16 was collected in civil actions.
“Collections of debts owed to the United States and to crime victims is a top priority of our office,” stated Mr. Walker. “In these tight budgetary times for our nation, we will continue our effective collection efforts on behalf of the United States and the victims of crimes.”
During the past fiscal year the Eastern District of North Carolina has recovered $772,658.21 in restitution and fines owed in federal crop insurance fraud and investment fraud cases. The office also recovered a total of $739,732.75 in the Freedman Farms case, of which a portion of the money collected was used for the protection and restoration of wetlands in our State. In addition, the Wake Med Medicare case resulted in a civil fraud restitution collection of $8 million in fiscal year 2013.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office for the Eastern District of North Carolina, working with Justice & Treasury Department partner agencies and divisions, collected $3,637,575 in asset forfeiture actions in FY 2013. Forfeited assets are deposited into the Department of Justice and Department of the Treasury Asset Forfeiture Funds and are used to restore funds to crime victims and for a variety of law enforcement purposes.
Louisburg Child Predator Sentenced to 18 YearsRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Louise W. Flanagan sentenced JOSEPH PATRICK MURPHY , 21, of Louisburg to 216 months imprisonment, followed by lifetime of supervised release. Upon his relase from prison, MURPHY will be required to register as a sex offender.
MURPHY was named in an Indictment filed on May 21, 2013 charging him with three counts of distribution of child pornography and ten counts of the receipt of child pornography and one count of possession of child pornography. On August 15, 2013, MURPHY pled guilty to one count of distribution of child pornography.
According to the investigation, MURPHY used the internet to distribute numerous images of child pornography to undercover law enforcement agents. A search warrant was executed at MURPHY’S residence on April 19, 2012. MURPHY was present and after being advised of his rights, admitted to having created and used an online account to download and share images and movies of child exploitation.
Investigation of this case was conducted by the Federal Bureau of Investigation. Assistant United States Attorneys Ethan Ontjes and Jay Exum 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.
Correctional Institution Employee Sentenced on Bribery Related OffenseRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced today RASHONDA CROSS, 27,a formercorrectional officer at the Rivers Correctional Institution, Winton, North Carolina, was sentenced by United States District Judge Louise W. Flanagan for one count of conspiracy to commit bribery, in violation of Title 18, United States Code, Section 371, to 3 years’ probation, 45 days intermittent confinement, and a $100 special assessment.
Investigation revealed that CROSS, while employed as a correctional officer at the Rivers Correctional Institution, accepted payments from inmates within the facility in return for smuggling in contraband items such as cell phones and cigarettes. It further showed that some inmates paid bribes to correctional officers to gain their cooperation in the scheme. Four others have been previously convicted and sentenced for their conduct in the scheme: former Rivers Correctional Officer RHONDA BOYD wassentenced in July 2013 to 20 months’ imprisonment; former Rivers Correctional Officer RAYE LYNN HOLLEY wassentenced in October 2013 to 20 months’ imprisonment; former Rivers’ inmate ROLAND BAZEMORE was sentenced in April 2013 to 30 months’ imprisonment; and former Rivers’ inmate KENNETH DODD was sentenced in October 2013 to 37 months’ imprisonment.
Investigation of this case was conducted by the Department of Justice, Office of Inspector General and the Federal Bureau of Investigation, with assistance provided by the United States Postal Inspection Service.
Pikeville Man Sentenced for Robbing North Carolina and South Carolina BanksRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Terrence W. Boyle sentenced BRIAN GARLAND LANCASTER, 47, of Pikeville, North Carolina, to 84 months imprisonment, consecutive on each count, followed by 5 years of supervised release.
On September 16, 2013 LANCASTER was charged in a three-count superseding criminal information. On September 24, 2013 he pled guilty to two counts of Armed Bank Robbery, in violation of Title 18, United States Code, Sections 2113(a) and 2113(d); and to one count of Attempted Bank Robbery in violation of Title 18, United States Code, Section 2113(a).
According to the investigation, on October 12, 2012, LANCASTER robbed the First Citizens Bank in Myrtle Beach, South Carolina with a BB gun. He took approximately $6,190.00, in currency. On October 16, 2012 LANCASTER approached the entrance to Heritage Bank in Fremont, North Carolina and pulled the hood of his sweatshirt over his head. A bank employee observed LANCASTER’S suspicious behavior and activated the automatic door lock feature. LANCASTER fled the scene. On October 17, 2012, LANCASTER, entered the Southern Bank in Roanoke Rapids armed with a BB gun. He pointed the gun at two tellers and commanded them to fill his bag with money. The tellers complied and LANCASTER fled with $7,862.98 currency.
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 Roanoke Rapids Police Department, Asheville Police Department, Halifax Police Department, and the Federal Bureau of Investigation. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.
Pamlico County Drug Trafficker Sentenced in Operation “No Quarter”Read the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today that United States District Judge Louise W. Flanagan sentenced NORRIS WILLIS, 42, of Bayboro, North Carolina, to 123 months of imprisonment and 10 years of supervised release. WILLIS previously pled guilty to conspiracy to distribute 5 kilograms or more of cocaine and 280 grams or more of crack cocaine.
On October 21, 2008, WILLIS was arrested in South Carolina after he and his co-conspirators purchased 1 kilogram of cocaine from a confidential informant. On November 30, 2010, the Pamlico County Sheriff’s Office used another confidential informant to buy 4.8 grams of cocaine base (crack) from WILLIS. The investigation revealed that WILLIS was accountable for the distribution of 100 kilograms of cocaine, 1.48 kilograms of cocaine base (crack) and 27 kilograms of marijuana from 1992 until November 30, 2010.
The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. Law enforcement officials seized drugs with a street value $4.6 million, including 127 kilograms of cocaine, 53 pounds of crystal methamphetamine, 160 pounds of marijuana, and 32 grams of heroin. Additionally, $2.2 million in U.S. Currency, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.
Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.
he federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Carteret, Craven and Pamlico Counties District Attorney’s Office. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.
Convicted Felon Who Hid Loaded Firearm Under His Minor Child Sentenced to 105 Months in PrisonRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrence W. Boyle sentenced VINCENT JAROD WILLIAMS, 30, of Spring Lake, to 105 months in prison, followed by 3 years of supervised release upon conviction for Possession of a Firearm by a Convicted Felon in and Affecting Commerce, in violation of Title 18, United States Code, Sections 922(g) and 924.
On December 9, 2010, officers with the Fayetteville Police Department observed WILLIAMS drive through a red light. As officers followed the vehicle they observed WILLIAMS making quick, rapid movements inside the vehicle and a traffic stop was conducted. The defendant’s five-year-old child was strapped in a child safety seat in the rear of the vehicle. When officers observed controlled substances in the passenger compartment they removed WILLIAMS to conduct a search. At that time, officers observed an empty gun holster attached to the defendant’s belt. WILLIAMS told officers that he did not have a gun because he was a felon.
For safety purposes, officers began to remove the defendant’s child from the car to search for the missing firearm and controlled substances. The child, who had been crying during the entire encounter, stated, “My daddy only gave me this gun,” and retrieved a .22 caliber handgun from under his leg. Officers safely took control of the handgun and found that its safety was disengaged with a live round in the chamber, and a further eight rounds in the magazine. Another 54 rounds of ammunition were located in the vehicle.
At the time of these events, WILLIAMS had several prior convictions, including two prior convictions for possessing a firearm while being a convicted felon.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) with the assistance of the Fayetteville Police Department. Assistant United States Attorney William M. Gilmore represented the Government.
Durham Man Sentenced to Twenty Years for Federal Firearm OffensesRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today, Senior United States District Judge Malcolm J. Howard sentenced JASON LEMAR MEDLYN, 31, of Durham, North Carolina, to 240 months imprisonment followed by 3 years of supervised release.
Investigation of this case was conducted by the Granville County Sheriff’s Office, the Durham Police Department, and the Raleigh-Durham Safe Streets Task Force comprised of the North Carolina State Highway Patrol, Raleigh Police Department, Durham Police Department, Durham County Sheriff’s Office, North Carolina Alcohol Law Enforcement, Cary Police Department, and the Garner Police Department. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.
On July 10, 2013 MEDLYN pled guilty to three federal charges: Conspiracy to possess stolen firearms and ammunition, in violation of Title 18, United States Code, section 371; Possession of firearm in a school zone; aiding and abetting, in violation of Title 18, United States Code, sections 922(q)(2)(A) and 924 and 2; Felon in possession of a firearm and ammunition in violation of Title 18, United States Code, Sections 922(g)(1) and 924.
According to the investigation, on May 31, 2012, MEDLYN and his co-conspirator, Ireshia Donte Summers broke into two residences in Granville County and stole, among other things, personal property, firearms and ammunition. The defendants were discovered while still at the second residence by the homeowner. A Granville County Sheriff’s Deputy responding to the call regarding the residential break in, pursued two males from Durham, NC, later identified as MEDLYN and Summers. The passenger in the fleeing vehicle fired shots at the pursuing deputy. A North Carolina State Highway Patrolman picked up the chase in Wake County and the passenger then fired shots at the trooper.
The car sped through two school zones in Durham before crashing. Three hand guns were found near the vehicle along with a stolen television, nooks, and jewelry.
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.Sergeant First Class Enters Guilty Plea to Bribery and Theft SchemesRead the Press Release
GREENVILLE – United States Attorney Thomas G. Walker announced that today in federal court, JAMES EDWARD TRAVIS pled guilty before United States Magistrate Judge Kimberly A. Swank to a Criminal Information charging him with demanding, seeking, and accepting bribes, in violation of Title 18, United States Code, Sections 201(b)(2)(A) and (B), and to theft of government property in violation of Title 18, United States Code, Sections 641 and 2.
The case was investigated by the Defense Criminal Investigation Service, the Office of the Special Inspector General for Afghanistan Reconstruction, and the United States Army Criminal Investigation Command, and the Federal Bureau of Investigation. Assistant U.S. Attorney Banumathi Rangarajan handled the prosecution of this case on behalf of the Eastern District of North Carolina.
United States Attorney Walker reflected, “Public corruption such as this defendant’s criminal conduct undermines our nation’s reconstruction efforts overseas and dishonors the sacrifice our military makes every day.”
According to the Criminal Information filed on November 13, 2013, and information presented in open court, JAMES EDWARD TRAVIS was a Sergeant First Class in the United States Department of the Army assigned to the Operational Detachment-Bravo for Alpha Company, 4th Battalion, 3rd Special Forces Group for a wartime deployment to Afghanistan. Between January 3, 2012, and October 4, 2012, TRAVIS was deployed to Afghanistan, working out of Forward Operating Base Sharana. During his deployment, TRAVIS acted as both a paying agent and a contracting officer representative. As a contracting officer representative, TRAVIS was responsible for, among other things, approving completion of contracts and then approving payments. TRAVIS was also in charge of contracting for cargo vehicles or “jingle trucks” to move supplies and equipment as well as small construction projects. TRAVIS accepted kickbacks from various vendors on a “quid pro quo” basis for various contracts. The kickbacks ranged from $4,000 to $7,000 per contract. TRAVIS received approximately $211,890 in kickbacks.
In addition, TRAVIS, another U.S. soldier, and a local Afghan worked together to steal fuel from FOB Sharana in Afghanistan. On multiple occasions, TRAVIS paid the other soldier to escort an Afghan driver to the fuel point on FOB Sharana, to load fuel into the Afghan’s tanker 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 violates a position of trust for personal enrichment. The DCIS investigates fraud and corruption that undermines the integrity of the Department of Defense. We continue to aggressively investigate violators to preserve precious American taxpayer dollars and better support our Warfighters serving honorably and selflessly in Southwest Asia."
“American servicemen and women face dangerous situations every day; their lives should not be put at risk by fellow soldiers working for their own profit. James Edward Travis stole thousands of dollars meant to support efforts in Afghanistan, but he could not hide his crimes from the FBI and our military partners dedicated to upholding justice,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
“Theft of fuel in a war zone is serious. Not only does it rob US taxpayers and damage the reconstruction effort, stolen fuel can also wind up in the hands of insurgents bent on harming Americans. There must be zero tolerance for this kind of crime -- and SIGAR is dedicated to ensuring that anyone engaging in this activity will face justice,” commented Special Inspector General for Afghanistan Reconstruction John F. Spoko.Cumberland County Child Sex Trafficker Sentenced to 540 MonthsRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today CHRISTOPHER JASON WILLIAMS, 33, of Fayetteville, North Carolina was sentenced by Chief United States District Judge James C. Dever, III, to 540 months imprisonment followed by a lifetime of supervised release. WILLIAMS previously pled guilty on July 15, 2013 to two counts of Sex Trafficking of Children, in violation of Title 18, United States Code Section 1591.
U.S. Attorney Thomas G. Walker stated, “Sex Trafficking, particularly of children, will not be tolerated in our community, and the U.S. Attorney’s Office will continue to work with our partners in law enforcement to ensure that individuals who commit these crimes are found and convicted.”
WILLIAMS’ crimes were first uncovered in January of this year when a young girl reported to police that she and another child had been held against their will by the defendant and forced to perform sex acts for money. At the time of the report, she had been able to escape but was fearful for her friend, who remained in WILLIAMS’ custody. Detectives with the Fayetteville Police Department responded to WILLIAMS’ apartment and eventually located the second victim locked in his attic crawl space.
Upon interviewing the girls, detectives learned that WILLIAMS had kept them captive for weeks and months, respectively, beating them and threatening to kill them and their family members if they attempted to escape. During this time, WILLIAMS posted partially nude photographs of the girls on various websites, advertising them for sex. Men were directed to WILLIAMS’ apartment, where the girls were forced to have sex with them for money. WILLIAMS forced both girls to have sex with him. He also made them perform sexual acts on him while recording it on video.
Once WILLIAMS was arrested, a forensic examination of his cell phone revealed hundreds of images of child pornography, many of which depicted the girls and were created by the defendant himself.
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.Investigation of this case was conducted by the Fayetteville Police Department. Assistant United States Attorney Leslie Cooley prosecuted the case for the United States.
Wilmington Man Sentenced for Drug Sale and Using Firearm During and in Relation to the Drug SaleRead the Press Release
RALEIGH- United States Attorney Thomas G. Walker announced that in federal court todayChief United States District Judge James C. Dever III, sentenced WILLIS SARVIS, 35, of Wilmington, North Carolina to life imprisonment followed by 5 years of supervised release.
On January 16, 2013, SARVIS was found guilty by a federal jury of the distribution of a quantity of phencyclidine in violation of Title 21, United States Code, Section 841(a)(1) and the possession of a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c). On February 21, 2012, SARVIS pled guilty to being felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924.
On March 18, 2011, in Wilmington, officers responded to the Hillcrest Housing Community regarding a man that was shot, and ultimately died from his injuries. The investigation revealed that during the course of a drug deal, the victim had been shot twice with a Romarm/Cugir, WASR, 7.62 x 39 mm assault rifle. There were numerous shell casings from the rifle in the area and the investigation revealed two homes were also struck with bullets. The investigation quickly focused on Mr. SARVIS who had left the rifle with a friend who gave the rifle over to law enforcement. Police located SARVIS and took him into custody where he confessed to selling the deceased two small bags of PCP and shooting him when an altercation arose between them. SARVIS claimed the shooting was in self-defense.Investigation of this case was conducted by the Wilmington Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Special Assistant United States Attorney Charity Wilson served as prosecutor for the government. Ms. Wilson is a prosecutor with the New Hanover County District Attorney's Office. District Attorney Ben David has assigned her to the United States Attorney's Office to prosecute federal Project Safe Neighborhood cases and other violent crime cases.
Warrant Officer Sentenced in Theft of Government Property CaseRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrence W. Boyle sentenced KURT ALLEN BENNETT, 41, of Fort Bragg, North Carolinato 36 months imprisonment followed by 3 years of supervised release.
The criminal investigation of this case was conducted by United States Defense Criminal Investigative Service; the Federal Bureau of Investigation; the United States Department of Army – Criminal Investigation Command, and the Defense Logistics Agency. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
U.S. Attorney Walker stated, “This officer sought to achieve financial gain to the detriment of our war fighting efforts. We will aggressively prosecute those stealing from the taxpayers and putting our armed forces in conflict at risk.“
A Criminal Information was filed on January 3, 2013, charging conspiracy to steal and convert property belonging to the United States Government, in violation of Title 18, United States Code, Section 371, and two counts of theft and conversion of government property, in violation of Title 18, United States Code, Sections 641. On June 4, 2013, he pled guilty to the charges.
According to information presented in open court, at the time of the offense, BENNETT was an Apache helicopter pilot in the United States Army assigned to the 1st Battalion, 3rd Aviation Regiment, at Hunter Army Air Field in Savannah, Georgia. From October 18, 2008, through October 18, 2009, BENNETT was deployed with his unit to Contingency Operating Base (COB) Speicher in Iraq. During his deployment, BENNETT stole government property, concealed the stolen items in military connexes, and then shipped the stolen goods back to the United States along with the rest of his unit’s property to Fort Drum, New York.
After BENNETT returned to the United State from Iraq, he traveled to Fort Drum and transported the connex and its contents of stolen items with his personal vehicle back to Georgia. In total, BENNETT stole nearly $1.3 million worth of government property.
“This sentencing of a US Army officer highlights the effectiveness of aggressive investigative efforts by the Defense Criminal Investigative Service (DCIS) and other law enforcement partners,” stated Special Agent in Charge John F. Khin, DCIS-Southeast Field Office. “Chief Warrant Officer Kurt Bennett conspired with others to steal over $1 million worth of military property, in self-serving crimes that undermined our war fighting efforts in Iraq. DCIS’ top priority is to protect precious resources needed for military operations, especially in these times of reduced Defense budgets.”
“Kurt Bennett dishonored his country and put the lives of his fellow soldiers at risk by stealing property intended to further our war efforts in Iraq and Afghanistan. His sentence should reassure the public the FBI and our outstanding military partners will make sure those who betray our trust are held accountable,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
BENNETT’s co-conspirator was Sergeant First Class Robert Alan Walker. Walker was sentenced on September 25, 2013, and received 18 months imprisonment.Ambulance Company Owner and Son Plead Guilty to Conspiracy to Commit Health Care & Wire FraudRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that today, before United States District Judge Terrence W. Boyle, PHYLLIS STALLINGS HARRELL and PAUL LYNN TRUEBLOOD, both of Belvidere, North Carolina, pleaded guilty to Count 1 of the Second Superseding Indictment which charged them with Conspiracy to Commit Health Care Fraud and Wire Fraud, in violation of Title 18, United States Code, Section 1349.
The investigation of this case was conducted by the United States Department of Health and Human Services Office of the Inspector General, the North Carolina Department of Justice's Medicaid Investigations Unit, and the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore is the assigned prosecutor on the case from the Economic Crimes Division of the United States Attorney's Office.
Count 1 of the Second Superseding Indictment alleges that between January of 2004 and December of 2009, HARRELL and TRUEBLOOD conspired to defraud Medicare, Medicaid, and private insurers in connection with various billings for alleged non-emergency ambulance transportation services in the area of Elizabeth City. The Indictment alleges that HARRELL, the mother of TRUEBLOOD, billed Medicare and Medicaid through Harrell Medical Transport, a company owned by HARRELL and operated by HARRELL and TRUEBLOOD. The indictment further alleges that TRUEBLOOD operated a wheelchair van transportation company that transported Medicare and Medicaid beneficiaries to routine medical appointments on a weekly basis. The Indictment alleges that although patients were transported in wheelchair vans, HARRELL and TRUEBLOOD billed Medicare and Medicaid through Harrell Medical Transport as though the trips had occurred in an ambulance. Medicare and Medicaid do not pay wheelchair van providers for wheelchair van transportation. The Indictment alleges that HARRELL and TRUEBLOOD fabricated and caused to be fabricated information in medical records to make it appear as though the patients had traveled by ambulance. The Indictment also alleges that HARRELL and TRUEBLOOD caused employees of Harrell Medical Transport to omit material information in medical records concerning the ability of patients to walk and ride in wheelchairs, which affects whether Medicare and Medicaid will pay for ambulance transportation.
During the investigation of the case, the United States Attorney’s Office, with the assistance of the United States Department of Health and Human Services, the North Carolina Attorney General’s Office – Medicaid Investigaitons Division, and the Federal Bureau of Investigation, seized several hundred thousand dollars in assets held by HARRELL and TRUEBLOOD. Seized assets included various ambulances and other vehicles, as well as the contents of various bank and investment accounts. During court today, United States District Judge Terrence W. Boyle entered a Preliminary Order of Forfeiture with respect to these assets and other assets linked to the fraud.
At sentencing, which has been tentatively scheduled for the Court’s February 17, 2014 term, HARRELL and TRUEBLOOD each face up to 20 years in prison, 3 years of supervised release, and up to a $250,000 fine. HARRELL and TRUEBLOOD will also be ordered to make restitutuion to Medicare, Medicaid, and private insurers who lost money due to the fraud. While the exact amount of restitutuion has yet to be determined, during court the Government noted that the loss in the case could amount to as much as $2.5 Million.Individual Charged with Attempt to Provide Material Support to A Foreign Terrorist OrganizationRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina and the Deparment of Justice National Security Division announced that on November 5, 2013, a federal grand jury in Raleigh, North Carolina returned a one-count indictment charging BASIT JAVED SHEIKH with attempting to provide material support and resources to a foreign terrorist organization in violation of Title 18, United States Code, Section 2339B. Specifically, the indictment charges that SHEIKH attempted to provide material support and resources to Jabhat al-Nusrah, which the United States Secretary of State has identified as an alias name for al-Qa’ida in Iraq, a designated Foreign Terrorist Organization.
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. United States Attorney for the Eastern District of North Carolina, Thomas G. Walker, emphasized, "This indictment details the violent intentions of one man and is in no way a reflection on anyone else."
SHEIKH was initially charged in a criminal complaint. As set forth in the affidavit supporting the complaint, SHEIKH is a 29 year-old legal permanent resident of the United States. The affidavit describes multiple Facebook postings by SHEIKH since April, 2013, expressing support for Jahbat al-Nusrah, which has claimed responsibility for nearly 600 attacks in Syria that have killed numerous innocent civilians. SHEIKH posted articles acknowledging that Jahbat al-Nusrah had been designated by the United States as a terrorist organization.
According to the affidavit, SHEIKH reached out to an individual he believed could assist him. SHEIKH communicated to this individual his desire to travel to Syria in support of violent jihad. This individual informed SHEIKH of another individual who was a member of Jabhat al-Nusrah and who could assist him. In reality, this individual was an FBI covert employee. SHEIKH reached out to the covert FBI employee and expressed his desire to travel to Syria in order to “help the mujahideen…in any way I can.” When asked how he wanted to help, SHEIKH responded “logistics, media, fight too, God willing.” Despite the FBI covert employee stating to SHEIKH that fighting was not for everyone, SHEIKH informed the FBI covert employee that he was “serious” and that he was ready to be a martyr.
Believing that the FBI covert employee would be able to assist in smuggling him from Lebanon into Syria, SHEIKH purchased a one way ticket with a final destination of Lebanon and a departure from Raleigh-Durham Airport on November 2, 2013. On that date, SHEIKH traveled to Raleigh-Durham Airport, obtained a boarding pass, checked in luggage, and proceeded through the security screening en route to his gate of departure. SHEIKH was arrested prior to boarding his flight.
If convicted, SHEIKH faces a maximum penalty of 15 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 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, NC State Bureau of Investigation, NC Department of Public Safety- NC State Highway Patrol and NC Alcohol Law Enforcement. The prosecution is being handled by Assistant United States Attorney Jason Kellhofer and Trial Attorney Jennifer Levy of the Counterterrorism Section in the Justice Department’s National Security Division.Two Pitt County Drug Traffickers Sentenced in Operation “No Quarter”Read the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court United States District Judge Louise W. Flanagan sentenced NIGEL OMAR GRAY, 34, of Greenville, North Carolina, to 131 months of imprisonment and 5 years of supervised and TORRICK JOHNTRELLE RODGERS, 34, of Farmville, North Carolina, to 211 months of imprisonment and 5 years supervised release. GRAY previously pled guilty to conspiracy to distribute and possess with the intent to distribute 1 kilogram or more of heroin and 500 grams or more of cocaine. RODGERS previously pled guilty to conspiracy to distribute 5 kilograms or more of cocaine and 280 grams or more of crack cocaine and three other federal drug charges.
GRAY was arrested on February 16, 2012, after GRAY agreed to purchase one kilogram of heroin and a half kilogram of cocaine from an undercover operative working for the U.S. Drug Enforcement Administration and the Greenville Police Department. The investigation further revealed that GRAY was responsible for distributing an additional 1.5 kilograms of heroin and 28 grams of cocaine since 2000. GRAY faced an enhanced sentence due to his prior convictions which qualified him as a career offender.
RODGERS was arrested on December 3, 2010, after officers found 53 grams of cocaine and 62 grams of crack cocaine during a search of RODGERS’ house pursuant to a search warrant obtained by the Farmville Police Department. The investigation also involved two controlled purchases of crack cocaine from RODGERS. The investigation revealed that from 2008 until his arrest, RODGERS purchased over 2 kilograms of cocaine which he converted into 2.8 kilograms of crack cocaine which he later sold. RODGERS faced an enhanced sentence due to his prior convictions which qualified him as a career offenderThe Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico. These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.
The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. Law enforcement officials seized drugs with a street value of $4.6 million, including 127 kilograms of cocaine, 53 pounds of crystal methamphetamine, 160 pounds of marijuana, and 32 grams of heroin. Additionally, $2.2 million in U.S. Currency, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico; the Internal Revenue Service - Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.
The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Carteret, Craven and Pamlico Counties District Attorney’s Office. District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.
Jamesville Man Sentenced to 540 Months for Producing Child PornographyRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today MEREDITH CLIFTON COOK, 47, was sentenced by Federal District Court Judge Louise W. Flanagan to 540 months imprisonment followed by a lifetime of supervised release and a fine of $50,000 for two counts of producing child pornography.
Investigation of this case was conducted by the Federal Bureau of Investigation with the assistance of the Martin County Sheriff’s Office. Prosecution was coordinated with the Martin County District Attorney’s Office. Assistant United States Attorneys Jay Exum and Ethan Ontjes handled the case for the United States.
U.S. Attorney Thomas G. Walker commented, “This is one of the worst cases of child sexual abuse and exploitation ever discovered in our district,” said Walker. “To sexually abuse the most helpless of children and then share that abuse with the world is conduct that cannot and should not be tolerated.”
Two separate offices of the Federal Bureau of Investigation – one in Charlotte, the other in Houston, Texas – developed leads in June of 2011 that an individual later determined to be COOK was engaged in trading child pornography over a peer-to-peer network frequented by child pornography traffickers. Investigators traced the account to Jamesville, North Carolina, leading to a search in November of 2011. Investigators discovered that COOK had amassed a massive library of multiple hundreds of thousands of child pornography images and videos and that he had been actively talking about his interest in the sexual abuse of infants online. After the initial search, investigators discovered that COOK had recorded his own sexual abuse of multiple children and redistributed the images over the internet. The victims were all younger than 7 years of age.
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 Jacksonville Man Sentenced for RobberyRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that yesterday in federal court, Judge Louise W. Flanagan sentenced carlos devaughn varnell , 26, of Mississippi, formerly of Jacksonville, North Carolina, to 60 months of imprisonment, followed by 3 years of supervised release.
Investigation of this case was conducted by the Jacksonville Police Department and the Bureau of Alcohol Tobacco, Firearms and Explosives. Assistant United States Attorney S. Katherine Burnette represented the government.
VARNELL was named in an Indictment filed on April 4, 2013, charging him with conspiracy to commit Hobbs Act Robbery and Hobbs Act Robbery; aiding and abetting. On August 15, 2013, VARNELL pled guilty to those charges.
According to the investigation, VARNELL was the driver of a car, stopped by the Jacksonville Police Department on April 30, 2012, shortly after a cab driver reported being robbed at gunpoint by two males. Two firearms were recovered from Varnell’s car, and both Varnell and his passenger were charged with the robbery.Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of North Carolina Reach Settlement with Warren County, North Carolina, Board of Education to Resolve Employment Rights Claim of A North Carolina ArmyRead the Press Release
RALEIGH - The Justice Department and the United States Attorney for the Eastern District of North Carolina announced today a settlement with the Warren County, North Carolina, Board of Education that resolves a lawsuit the Department filed on behalf of North Carolina Army Reserve soldier Dwayne Coffer under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).
The settlement, which was filed as a Consent Agreement in the U.S. District Court for the Eastern District of North Carolina, resolves allegations that the Warren County Board of Education willfully violated USERRA by not renewing Coffer’s employment contract in 2008 because of his military service obligations. Coffer, a Sergeant First Class in the United States Army Reserve, worked at Warren County High School as an Assistant Principal. During his employment with the County, Coffer took periodic leave from work to fulfill his military obligations. According to the Justice Department’s complaint, the Board did not renew Coffer’s contract as an Assistant Principal in 2008 because staff members expressed frustration at accommodating his military service during the school year.
USERRA prohibits employers from discriminating against service members with respect to employment opportunities based on their past, current or future uniformed service obligations. USERRA also requires employers to promptly reemploy service members following their return from military leave. Under the terms of the Consent Agreement, the Warren County Board of Education will, among other things, reemploy Coffer under a two-year contract as a Lead Teacher/Site Supervisor at the salary he would have received had he remained continuously employed by the County, pay back-pay to Coffer in the amount of $10,000, and contribute lost retirement payments to Coffer’s retirement account in the amount of $13,702.63.
“USERRA affords military members who leave their civilian careers behind for significant periods of time to serve our country certain protections against unjust terminations,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “It is important that veterans have the opportunity to serve their country free from worry about termination without cause.”United States Attorney Thomas G. Walker stated, “I am pleased we were able to resolve this matter. Improper job terminations over military service cannot be tolerated.”
Additional information about USERRA can be found on the Justice Department websites www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as the Labor Department website www.dol.gov/vets/programs/userra/main.htm.
The Justice Department initiated the lawsuit after Coffer filed a complaint with the Labor Department’s Veterans’ Employment and Training Service, which investigated the matter and determined that the complaint had merit. This case was handled by the Employment Litigation Section of the Civil Rights Division and the United States Attorney’s Office for the Eastern District of North Carolina.Fast Food Restaurant Robbers Plead GuiltyRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that TREVIN MAURICE GIBSON of Greenville, MICHAEL RONDALE GIBSON of Greenville, PRENTISE JAVAUGHN WILKINS of Williamston and DESHAUN ENTREA SPRUILL of Robersonville each pled guilty to firearms charges resulting from a string of robberies of fast food restaurants in and around Greenville from September 2011 through January 2012. The robberies involved outlets of Bojangles, KFC, Subway, Burger King, McDonalds and Popeyes.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Greenville Police Department, the Williamston Police Department, the Robersonville Police Department, the Wilson Police Department, the Farmville Police Department, the Elizabeth City Police Department, the Goldsboro Police Department, the Snow Hill Police Department, and the Pitt County Sheriff’s Office. Assistant United States Attorney John Bennett is prosecuting the case.
Each defendant entered a plea before Chief U.S. District Judge James C. Dever, III to two counts of using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). SPRUILL entered his plea on Friday, November 1, 2013, and TREVIN GIBSON, MICHAEL GIBSON and WILKINS entered their pleas on Monday, November 4, 2013. Each defendant faces a mandatory minimum sentence of thirty years without parole, and could be sentenced to up to life in prison. Each defendant will be sentenced the week of February 10, 2014. Another defendant, Marcus Roshawn Garrett, entered a guilty plea earlier and is pending sentencing next month.
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.Tabor City Farmer Sentenced for His Part in Tobacco Insurance Fraud ScamRead 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, has sentenced PATRICK REX LOVETT, 48, of Tabor City, North Carolinato 5 years probations with 9 months of house arrest. The Court also imposed a fine of $10,000 and ordered forfeiture in the amount of $160,696.
The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General – Investigations, the United States Department of Agriculture - Risk Management Agency – Special Investigations Branch, and the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
On February 19, 2013, LOVETT pled to structuring transactions to evade reporting requirements, in violation of Title 31, United States Code, Sections, 5324(a)(3) and (d)(2).
According to the Criminal Information filed on November 26, 2012, and information presented in open court, LOVETT structured 22 currency transactions totaling $160,696.00 with one or more domestic financial institutions for the purpose of evading the legal obligation to report currency transactions in excess of $10,000. Six of the structured transactions, totaling $49,118, related to the sale of hidden tobacco. Those sales were not reported to the United States Department of Agriculture and LOVETT did not report the income on his tax returns until he amended the tax returns pursuant to his plea agreement.
This case is part of the ongoing investigation of the multi-million dollar crop insurance fraud in Columbus County.Robeson County Farmer Sentenced in Million Dollar Crop Insurance Fraud, Aggravated Identity Theft, Firearm Offense, and Threat to Law EnforcementRead 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 HARRY DEAN CANADY, 63, of Lumberton, North Carolinato a total of 72 months imprisonment followed by 5 years supervised release. The Court also ordered CANADY to pay restitution in the amount of $1,036,516.
On December 19, 2012, CANADY pled guilty to the following offenses: conspiracy to make false statements, to make material false statements, and to commit mail and wire fraud; false statements to the Federal Crop Insurance Corporation; aggravated identity theft; felon in unlawful possession of a firearm; and retaliation against a federal official in violation of Title 18, United States Code, Section 115.
U.S. Attorney Walker stated, “This investigation exemplifies how our nation’s law enforcement officers place their lives at risk in the investigations of crimes, even white collar offenses. Such intimidation tactics will not be tolerated in the pursuit of justice for the American people and the protection of public funds.”
“USDA-OIG-Investigations remains committed to working with the U.S. Attorney’s Office and our law enforcement partners to bring those to justice who willfully violate the law, threaten our agents, and facilitate fraud against USDA programs. Threatening federal agents is a serious offense. USDA-OIG will always take action to protect its law enforcement agents from such threats”, said Karen Citizen-Wilcox, Special Agent-in-Charge.
"It is very rewarding to see these people sentenced after such a complex and exhausting investigation by our special agents and our law enforcement partners," said Special Agent in Charge, Jeannine A. Hammett, IRS Criminal Investigation.
According to the Indictment returned by a federal grand jury on June 13, 2012, court filings, and information presented in open court, CANADY owned and rented farmland in Robeson County, North Carolina, and produced, among other crops, tobacco, corn, wheat, and soybeans. From August 2006 through December 2009, CANADY conspired with others to commit fraud upon the federal crop insurance program. It was the purpose of the conspiracy to profit through the filing of false, fictitious, and fraudulent federal crop insurance claims, the sale of unreported tobacco and other grains, and to hide the criminal proceeds through payments and sales in nominee names.
Specifically, CANADY worked with a co-conspiring insurance agent, warehousemen, brokers, and adjusters to make false crop insurance claims, and to hide some or all of his crop production by selling it in nominee names or the names of family members, or for cash to co-conspiring warehousemen.
The investigation revealed that CANADY profited under the scheme because he was paid twice for each pound or bushel of his crop: once through the false crop insurance claim, and also through the sale of the “hidden” tobacco or “hidden” grain. CANADY and other co-conspirators misrepresented the truth of farm operations in a variety of documents, including applications, reports of actual production history, acreage reports, and claim forms made and submitted in support of crop insurance coverage and claims that failed to truthfully show who had an insurable interest and who really suffered a loss and the extent of that loss which were submitted to the Risk Management Agency, an agency of the United States Department of Agriculture, and private entities.
For example, law enforcement determined that CANADY, without authorization, used the name of his grandchildren, to hide some of his soybean production. Specifically, on January 21, 2008, CANADY declared that he only produced, harvested, and sold 7,192 bushels of soybeans, when in fact, he sold an additional 2,261 bushels of soybeans in the name of his grandchildren. By failing to disclose the sales in his grandchildren’s name, CANADY was paid $99,537 on a false claim.
The investigation further revealed that CANADY took the criminal proceeds obtained through other acts of aggravated identity theft and federal crop insurance fraud, and engaged in various financial transactions with those funds, including causing his daughter to deposit an $84,655.97 check into a financial institution and to transfer the funds to an account controlled by him. These funds were derived from the unreported sale of 23,730 bushels of corn in the name of a grandchild.
In an effort to increase the amount of money he could defraud from the federal crop insurance program, CANADY created and used a new corporation, MC FARMS CO., INC. CANADY caused another person to submit false documents to the Farm Service Agency, and the federal crop insurance program under that corporation name.
During the course of the investigation, law enforcement received information that CANADY unlawfully possessed firearms. During the execution of a November 22, 2010, search warrant, officers recovered 6 firearms and over 180 rounds of ammunition. CANADY had been previously convicted of involuntary manslaughter, a crime punishable by a term of imprisonment exceeding one year.
CANADY, who was aware of the federal investigation since at least 2008, made several threats against law enforcement. Most recently, on January 23, 2012, CANADY threatened to assault and murder a USDA-OIG Special Agent with the intent to retaliate against such law enforcement officer.
As a result of the offense conduct, CANADY fraudulently obtained a total of $1,036,516 worth of federal crop insurance indemnity payments.
The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General - Investigations; United States Department of Agriculture - Risk Management Agency – Special Investigations Branch; and the United States Internal Revenue Service – Criminal Investigations. Assistant United States Attorney Banumathi Rangarajan handled the prosecution on behalf of the Eastern District of North Carolina.Kinston Farmer Sentenced for Fraud on Commodity Credit CorporationRead 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, has sentenced WILLIAM L. WHALEY, JR., 50, of Kinston, North Carolinato 12 months and 1 day of imprisonment followed by 3 years supervised release. The Court did not impose a fine in recognition of the $50,000 monetary penalty previously paid by the defendant.
On February 27, 2013, a Criminal Information was filed charging WHALEY with making false statements in connection with a commodity credit corporation loan, in violation of Title, 15, United States Code, Section 714m. On April 9, 2013, he pled guilty to the charge.
According to the investigation, WHALEY, the controlling partner of Whaley Partners, a large farming operation, entered into a commodity loan agreement with the United States Department of Agriculture for $272,986.56 using bushels of soybeans as collateral. During the loan process, an agency employee went to WHALEY’s farm to verify the quantity and quality of the beans. In preparation for the visit, WHALEY had a farm hand suspend a bucket of soybeans just below the opening at the top of the grain bin to give the illusion that the grain bin was in fact filled with 54,000 plus bushels of soybeans. In reality, the bin was empty and the collateral never existed. WHALEY then submitted false lien waivers in connection with his loan application. The Farm Service Agency discovered the fraud in May 2009.
The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General – Investigations. The Farm Service Agency provided valuable assistance in the investigation. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.Eastern North Carolina Drug Conspirators Sentenced and Civil Action Seeking Forfeiture of House FiledRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that five individuals involved in a drug conspiracy ring in Eastern North Carolina have been sentenced in federal court by United States District Judge Terrence W. Boyle. Additionally, procedures to seize a house in Kinston, North Carolina used by drug distributors and users have been initiated to rid the community of that blight.
The criminal investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kinston Department of Public Safety, North Carolina State Bureau of Investigation, North Carolina Alcohol Law Enforcement, Lenoir County Sheriff’s Office and the United States Marshal’s Service. Assistant United States Attorneys Toby Lathan and Leslie Cooley handled the prosecution of the criminal cases on behalf of the Government. Assistant United States Attorney Steve West handled the forfeiture of the property in Kinston for the government.
According to the investigation, a boarding house located at 302 East Caswell Street in Kinston was a known crack house. Information was obtained that multiple individuals were selling crack from this location and there were guns at the location as well. Between August 2011 and April 2012, law enforcement officers conducted an operation wherein four different individuals bought crack cocaine from five different individuals a total of eight times. Additionally, one individual was arrested on a weapons charge.
The defendants received the following sentences: ERIC DION LATHAM, 36, of Brentwood, New York was sentenced to 300 months imprisonment followed by 5 years supervised release. LATHAM, was sentenced for conspiracy to distribute a quantity of cocaine base (Crack), distribution of a quantity of cocaine base (Crack) and aiding and abetting the same, and using and carrying a firearm during and in relation to a drug trafficking crime and aiding and abetting the same, and with felon in possession of a firearm. JAMES HENRY STRONG, 31, of Grifton, North Carolina was sentenced to 48 months imprisonment followed by 3 years of supervised release. JAMES HENRY STRONG was sentenced for distribution of a quantity of cocaine base (Crack) and aiding and abetting the same, and distribution of a quantity of cocaine base (Crack) and aiding and abetting the same. JEREMY TYRONE STRONG, 34, of Grifton, North Carolina was sentenced to 21 months imprisonment followed by 3 years of supervised release. JEREMY TYRONE STRONG, was sentenced for distribution of a quantity of cocaine base (Crack) and aiding and abetting the same. MICHAEL ALPHONSO POLLARD, 36, of Hookerton, North Carolina was sentenced to 48 months imprisonment followed by 3 years of supervised release. POLLARD was sentenced for two counts of distribution of a quantity of cocaine base (Crack). UNTEZ DEVON LLOYD, 22, of Kinston, North Carolina was sentenced to 15 months imprisonment followed by 3 years of supervised release. LLOYD was sentenced for distribution of a quantity of cocaine base (Crack) and distribution of a quantity of cocaine base (Crack). JAMES THOMAS STRONG, 62, of Grifton, North Carolina was sentenced to 37 months imprisonment followed by 3 years of supervised release. STRONG was sentenced for possession of an unregistered firearm.
In conjunction with the criminal matter, the government filed a civil action seeking the forfeiture of a house at 302 East Caswell Street in Kinston. The civil complaint filed on September 26, 2013 alleges that multiple sales of illegal controlled substances were made from the house. The civil action remains pending.Canadian Indicted for Securities and Wire FraudRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that on October 18, 2013, a federal grand jury in Raleigh, North Carolina returned a two count indictment charging JAMES ALAN ROWAN with securities fraud and wire fraud.
ROWAN is a Canadian citizen who served as President and Chairman of Enviro-Energies, a Delaware-registered corporation, headquartered in Canada. As detailed in the Indictment, ROWAN claimed to have developed and patented a new type of turbine to generate clean electricity for homes and small commercial establishments. He told potential investors, distributors, and customers in the United States that he developed and patented a new type of wind turbine that did not require a tower to support the turbine assembly. ROWAN referred to his line of wind turbine models as “Mag Wind Turbines.”
Through aggressive marketing efforts over the Internet and in person, ROWAN received endorsements for the Mag-Wind Turbine design concept from unwitting Hollywood celebrities and environmental activists. Additionally, the Grand Jury alleges that ROWAN made numerous false and deceptive claims to his U.S. based distributors and customers about the Mag-Wind Turbine by exaggerating its power generation capacity, falsifying scientific and technical data, and falsifying information regarding his capacity to manufacture and distribute the Mag-Wind turbines. The Grand Jury also alleges that ROWAN inveigled U.S. investors in North Carolina, California, and elsewhere into purchasing Enviro-Energies shares by falsely telling them that these shares would be listed on the stock exchanges through an Initial Public Offering (IPO). Even though some investors responded to ROWAN’S false claims, once they paid for their shares, ROWAN never delivered the actual share certificates.If convicted, the maximum penalties for the charged counts are twenty years in prison for securities fraud and twenty years in prison for wire fraud. The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty. The case is being investigated by the Federal Bureau of Investigation (FBI) and is being prosecuted by Assistant United States Evan Rikhye.
Wilmington Man Sentenced for Robbery and Firearm ChargesRead 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 AARON MONROE , 41, of Wilmington to 324 months imprisonment, followed by 5 years of supervised release.
Investigation of this case was conducted by the Wilmington Police Department along with the Bureau of Alcohol, Tobacco, Firearms and Explosives. 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 and firearm related cases.
Aaron monroe was named in an Indictment filed on April 24, 2012 charging him with Robbery of a Business Engaged in Interstate Commerce, Using and Carrying a Firearm During and in Relation to a Crime of Violence and Felon in Possession of a Firearm. On October 1, 2012, monroe pled guilty to those charges.
According to the investigation, on December 7, 2011, MONROE along with his father, Victor McClain, armed with a firearm and a BB gun, entered Game Giant, located in Wilmington, North Carolina. Upon entry into the store, MONROE and McClain pretended to be customers until the store clerk appeared to be alone. MONROE and McClain produced firearms and demanded money. Unbeknownst to MONROE, there were still two customers in the store who also were robbed of their money. After getting money from the cash register, MONROE and McClain forced the victims into a bathroom and barricaded the door with a shelf. Once the victims heard the door chime, that indicated the robbers had left the store, they forced the door opened and escaped. The store clerk ran outside and saw an officer with the Wilmington Police Department and pointed out the robbers who were leaving in a car. The Wilmington Police Department attempted to stop the car. MONROE was driving the car and refused to stop for law enforcement. MONROE recklessly endangered the Wilmington citizenry by speeding throughout the city, running stop signs, weaving into oncoming traffic and driving recklessly through parking lots of businesses and schools. After striking a fence pole in a vacant lot, the high speed chase ended and MONROE and McClain were taken into custody. MONROE confessed to his participation in the robbery of Game Giant.Wilmington Man Sentenced for Firearm ViolationsRead 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 William Jenkins , 25, of Wilmington to 137 months imprisonment, followed by 3 years of supervised release.
jenkins was named in an Indictment filed on April 24, 2012 charging him with Possession of a Firearm by a Felon and Theft of Firearms from a Federal Firearms Licensee. On July 2, 2013, jenkins pled guilty to those charges.
According to the investigation, on October 26, 2011, William JENKINS and Joshua Zack traveled to Rocky Point Guns and Ammo in Rocky Point, North Carolina and broke into a locked trailer behind the store. They stole 27 firearms from that businesses. JENKINS and Zack then took the firearms to JENKINS’ residence in Wilmington where they hid the firearms in JENKINS’ back yard. JENKINS and Zack were caught on November 2, 2011 when they went back to the same store in an apparent attempt to break in again. Officers with the Pender County Sheriff’s Office were patrolling the area more heavily after the first break in and caught JENKINS and Zack as they were parked by the store about to break in a second time. Several of the guns have been recovered in various investigations by the Wilmington Police Department.
Investigation of this case was conducted by the Pender County Sheriff’s Office, the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. 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 federal crimes of violence and firearm related crimes.
Doctor Sentenced for Tax OffenseRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Louise W. Flanagan sentenced susan marie lee , age 58, of Raleigh, North Carolina, to 36 months imprisonment and ordered her to pay $496,854.64 in restitution to the Internal Revenue Service. LEE was immediately taken into custody after the sentencing hearing. LEE was named in a Criminal Information filed on March 4, 2013 charging her with Corrupt Interference with the Internal Revenue laws. On May 14, 2013, LEE pled guilty to that charge.
According to the investigation, LEE, a graduate of the University of North Carolina Dental School, has an extensive history of non-compliance with the revenue laws. From 1996 through and including 2009, Dr. LEE endeavored to obstruct and impede the Internal Revenue Service by failing to file income tax returns or pay taxes she claimed to owe, filing false income tax returns, forming sham entities to disguise personal expenses as payments related to her dental practice, transferring ownership of her real property to nominees, and fraudulently seeking to discharge her IRS debt by filing for bankruptcy. Despite having numerous opportunities to settle her obligations with the IRS administratively, Dr. LEE maintained a defiant position, refusing to comply with the tax laws. She affirmatively sought to divert her income into sham corporations and hide her assets from seizure. Finally, in 2009, she filed for bankruptcy in an effort to discharge nearly $1 million in tax debt due and owing to the IRS. The Civil Division of the US Attorney’s Office represented the IRS in US Bankruptcy Court and successfully defeated her attempts to discharge this debt.
Investigation of this case was conducted by the Internal Revenue Service Criminal Investigations. Assistant United States Attorney Katherine Burnette represented the IRS in the bankruptcy action and Assistant United States Attorney Susan B. Menzer prosecuted the case for the government.
Correctional Institution Employee Sentenced on Bribery Related OffenseRead the Press Release
NEW BERN - United States Attorney Thomas W. Walker announced today RAYE LYNN HOLLEY, 50,a formercorrectional officer at the Rivers Correctional Institution, Winton, North Carolina, and KENNETH DODD, a formerinmate at the Rivers Correctional Institution, were sentenced today by United States District Judge Louise W. Flanagan to 20 months and 37 months imprisonment, respectively.
Investigation revealed that HOLLEY, while employed as a correctional officer at the Rivers Correctional Institution, accepted payments from inmates within the facility in return for smuggling in contraband items such as cell phones and cigarettes. It further showed that DODD and other inmates paid bribes to correctional officers to gain their cooperation in the scheme. Two others have been previously convicted and sentenced for their conduct in the scheme: former Rivers Correctional Officer Rhonda Boydwassentenced in July 2013 to 20 months’ imprisonment; and former Rivers inmate Roland Bazemore was sentenced in April 2013 to 30 months’ imprisonment. In May, 2013, former correctional officer Rashonda Cross entered a plea of guilty for conspiring to accept bribes from inmates at Rivers, as well. Cross is set to be sentenced in December 2013.
Investigation of this case was conducted by the Department of Justice, Office of Inspector General and the Federal Bureau of Investigation, with assistance provided by the United States Postal Inspection Service.
Henderson Man Sentenced for Retaliating Against A Federal WitnessRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court yesterday, Senior United States District Judge James. C. Fox sentenced WAYNEMONDEMOUNT BULLOCK, 25, of Henderson, North Carolina, to 92 months imprisonment followed by 3 years of supervised release. On May 2, 2013 a federal jury convicted BULLOCK for retaliating against a federal witness in violation of Title 18, United States Code, Section 1513(b)(1).
According to the investigation, on October 5, 2012, BULLOCK participated in an assault on a federal witness who had previously testified before Senior Judge James C. Fox. BULLOCK and a co-defendant approached the federal witness at a convenience store in Henderson, NC, accused the witness of being a “snitch” and proceeded to beat the witness. BULLOCK was recently released from the North Carolina Department of Corrections prior to assaulting the victim.
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 Henderson Police Department. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.
New Bern Man Sentenced for Bankruptcy Fraud CrimesRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced TODD ALLEN FULCHER , 49, to six months imprisonment, followed by three years of supervised release, and an order of restitution.
FULCHER was named in an Indictment filed on October 3, 2012, charging him with one count of Bankruptcy fraud and four counts of Concealment of assets, false oaths and claims, bribery, and one count of Destruction, alteration or falsification of records in relation to a bankruptcy case in the Eastern District of North Carolina. On April 10, 2013, FULCHER pled guilty to one count of Bankruptcy fraud in violation of Title 18, United States Code, Section 157(3) and one count of Destruction, alteration or falsification of records in violation of Title 18, United States Code, Section 1519.
According to the investigation, beginning on or about January 9, 2010, and continuing through November 2011, FULCHER, devised a scheme to defraud by means of materially false and fraudulent pretenses and representations as part of a bankruptcy proceeding. He knowingly made false statements on his bankruptcy Schedules and Statement of Financial Affairs; FULCHER also knowingly concealed bank account information; income information; real estate located in Trenton, North Carolina; three shotguns and two riles; and wood working hand tools with regard to his bankruptcy after filing for Chapter 13 relief under Title 11. Additionally, FULCHER fraudulently concealed personal property belonging to the estate, including a boat, firearms, and a motorcycle. Additionally, he knowingly concealed vehicles belonging to Fulcher Tire Sales & Service, Inc. which belonged to the corporation’s bankruptcy estate.
The United States Bankruptcy Court for the Eastern District of North Carolina previously had entered orders detaining FULCHER for contempt for his failure to attend creditors’ meetings and to abide by the orders of the court.Investigation of this case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.