Eastern District of North Carolina
Press releases recorded for this federal judicial district.
Greenville Shooter SentencedRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrence W. Boyle sentenced MARKIS R. ALLEN, 21, of Greenville, North Carolinato 120 months imprisonment followed by three years supervised release.
On January 16, 2013, a Federal Grand Jury returned an Indictment charging ALLEN with unlawful possession of a firearm by a convicted felon. On March 19, 2013, ALLEN pled guilty to the charge.
According to the investigation, on October 14, 2011, Greenville police officers responded to a shooting. When officers arrived at the location, they found the victim with a gunshot wound. After a description was obtained and distributed, officers found ALLEN behind a residence. Officers found a loaded shotgun concealed down the rear of ALLEN’s pants.The criminal investigation of this case was conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenville Police Department. Assistant United States Attorney Jane J. Jackson handled the prosecution on behalf of the Eastern District of North Carolina.
Cary Man Sentenced for Manufacturing Child PornographyRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced KYLE MARTIN INCH , 28, of Cary, North Carolina to 300 months imprisonment, followed by a lifetime of supervised release.
INCH was named in an Indictment filed on February 5, 2013 charging him with three counts of Manufacture/Production of Child Pornography; ten counts of Receipt of Child Pornography; and one count of Possession of Child Pornography. On May 21, 2013, INCH pled guilty to Count 1, Manufacture/Production of Child Pornography in violation of Title 18, United States Code, Sections 2251(a) and (e).
According to the investigation, in January 2011, the Cary Police Department initiated an online undercover investigation related to the distribution of child pornography. Agents determined that the computer used by INCH offered to distribute child pornography numerous times between January and September of 2011. Agents executed a search warrant pursuant to which they discovered that INCH had not only amassed a collection of hundreds of images and videos of child sexual abuse, but had been recording his own sexual abuse of a child.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.Investigation of this case was conducted by the Cary Police Department. Assistant United States Attorneys Leslie Cooley, Ethan Ontjes, and Jay Exum prosecuted this case for the United States, in coordination with the Wake County District Attorney’s Office.
Pamlico County Drug Traffickers Sentenced as Part of “Operation No Quarter”Read the Press Release
NEW BERN – United States Attorney Thomas Walker, District Attorney Scott Thomas and District Attorney Kimberly Robb announced that today in federal court, United States District Judge Louise W. Flanagan sentenced ALLEN GEROME GIBBS, 38, of Bayboro, NC and JESSIE LEE PEARSON, 36, of Greenville, NC to federal prison as a result of “Operation No Quarter.”
GIBBS was sentenced to 189 months’ imprisonment while PEARSON received a sentence of 141 months’ imprisonment. Both will be placed on supervised release for a period of 5 years following the completion of their prison sentences. In addition, GIBBS was also ordered to pay $1,900 in restitution to the Pamlico County Sheriff’s Office. If he is unable to pay the restitution up front, he will be required to participate in the Bureau of Prisons’ Inmate Financial Responsibility Program to pay back the money while he is incarcerated. As part of his plea agreement, PEARSON agreed to forfeit to the government $99,763 in cash seized by agents as a part of the investigation.
PEARSON was arrested on July 4, 2011, after a shipment of approximately 14 kilograms of cocaine was seized in Pamlico County from a truck driven by Renato Torres-Eguino, of Phoenix, Arizona. That cocaine was destined for PEARSON’s cocaine source of supply, Jorge Acosta-Muro, of Arapahoe, North Carolina. Acosta-Muro intended to sell the cocaine to PEARSON and Kevin Cornelious Davis, of Bayboro, North Carolina, who, in turn, planned to sell the cocaine to their customers, who included GIBBS and Tobia Mila Moye, of Grifton, North Carolina. The investigation revealed that PEARSON, who lived in Greenville but operated a commercial fishing business in Pamlico County, was responsible for distributing over 130 kilograms of cocaine throughout Pitt and Pamlico Counties since 2002.
GIBBS was indicted after agents with the Craven County and Pamlico County Sheriff’s Offices utilized a confidential informant to purchase cocaine from GIBBS on a number of occasions in Craven and Pamlico Counties during a timeframe spanning from 2011 to 2012. Further investigation revealed that GIBBS was involved in the distribution of over 8 kilograms of cocaine in the Craven and Pamlico County areas since his release from prison on prior drug charges in 2008.
During previous sessions of court, Judge Flanagan sentenced the others involved as follows: Torres-Eguino was sentenced to 236 months’ imprisonment. Acosta-Muro was sentenced to 270 months’ imprisonment. Davis was sentenced to 131 months’ imprisonment. Moye was sentenced to 122 months’ imprisonment.
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 Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshal’s 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. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office and Mr. Willis is a prosecutor with District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties. 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.Former Army Research Scientist Pleads Guilty to Conspiring to Defraud the GovernmentRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, before United States District Judge Terrence W. Boyle, former Army Research scientist DWIGHT WOOLARD of Raleigh, North Carolina plead guilty to conspiring to defraud the United States government, in violation of Title 18, United States Code, Section 371. At sentencing in January 2014, he faces a maximum term of imprisonment of five years, a $250,000 fine, and forfeiture of assets derived from his fraudulent activities. As part of his plea agreement, DR. WOOLARD will pay $842,403.70 in restitution to the Department of Defense.
United States Attorney Thomas G. Walker expressed his Office’s commitment to the prosecution of public officials who abuse their power for personal financial gain. “For almost a decade, Dwight Woolard abused the Army’s trust and stole monies designated for researching and developing innovative ways to protect and defend American military personnel in battle.”
According to the Government’s proffer, DR. WOOLARD worked at the Army Research Office in Durham as a Program Manager from September 1998 until his resignation in December 2012. The Army Research Office falls under the command of the United States Army Research and Development and Engineering Command whose mission is to provide integrated research, development, and engineering solutions to empower, unburden, protect, and sustain the warfighter. In his civilian position, DR. WOOLARD had control over Department of Defense funding on numerous government contracts and grants. Beginning in December 2001, DR. WOOLARD used his position to steer sub-contracts to his spouse and her company Qtronika. This work consisted of data entry for University scientists, website development for scientific research areas monitored by DR. WOOLARD and planning annual scientific conferences. In total, Dr. Woolard’s wife or her company received $842,403.70 from government funded projects.
Special Agent-in-Charge John F. Khin, Defense Criminal Investigative Service (DCIS), Southeast Field Office stated, “It is a top priority of the DCIS to ferret out and prosecute corrupt Department of Defense (DoD) officials. Former Army Engineer Dwight Woolard was terminated from his position with the Army Research Office in North Carolina in November 2012 based on findings of an investigation that he caused more than $1 million worth of DoD contracts to be awarded to his wife’s company. In addition to criminal sanctions, the DCIS is also pursuing forfeiture action to recoup losses to the Government.”
This was a joint investigation conducted by the Defense Criminal Investigative Service (DCIS) and the Army’s Criminal Investigation Division. Assistant United States Attorney Susan Menzer is prosecuting the case for the government.For Reentry After DeportationRead 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 Hermelindo Velasquez-Rivera , 36, of Sonora, Mexico, to 125 months imprisonment, followed by 3 years of supervised release.
VELASQUEZ-RIVERA was named in an Indictment filed on April 3, 2013, charging him with illegal reentry into the United States after deportation subsequent to aggravated felony convictions. On June 4, 2013, velasquez-rivera pled guilty to that charge.
According to the investigation, VELASQUEZ-RIVERA, also known as “Ramon Efrain Castro” and “Hermelindo Castro”, an alien, reentered the United States after having previously been deported from the United States on October 28, 1996, on December 17, 2003, and again on April 15, 2010. VELASQUEZ-RIVERA reentered the United States after having been convicted twice of transportation of illegal aliens and twice of illegal reentry after deportation. VELASQUEZ-RIVERA was found by immigration officials in this district as a result of his arrest for driving while impaired and the vehicular death of a 37-year-old mother of two children. VELASQUEZ-RIVERA was convicted of those offenses in Wayne County, North Carolina. The instant federal conviction constitutes VELASQUEZ-RIVERA’s third for illegal reentry to the United States after deportation.Investigation of this case was conducted by the U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations.
Fayetteville Woman Pleads to Involuntary Manslaugter in Death of Fort Bragg SoldierRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, SARAH ASHLEY ROGERS, 21pled guilty before Senior United States District Judge W. Earl Britt to one count of Involuntary Manslaughter in violation of Title 18, United States Code, Section 1112, and one count of Driving While Impaired in violation of Title 18, United States Code section 13, assimilating North Carolina General Statute 20-138.1.
The investigation revealed that on or about December 8, 2012, at approximately 1:40 a.m., ROGERS killed Richard Bradley Powell while driving impaired with a blood alcohol concentration exceeding the legal limit of 0.08.
Investigation of this case was conducted by the Fort Bragg Military Police, Fort Bragg Criminal Investigative Detachment, Fort Bragg Department of the Army Uniformed Police and the Federal Bureau of Investigation. Assistant United States Attorney Leslie Cooley and Special Assistant United States Attorney David Coleman prosecuted the case of the government.North Carolina U.S. Attorney Offices Co-Sponsor Human Trafficking Symposium September 12-13, 2013 in RaleighRead the Press Release
RALEIGH - United States Attorneys Thomas G. Walker, Ripley Rand, and Anne M. Tompkins announced that their three Offices are co-sponsoring a Human Trafficking Symposium September 12-13, 2013 at the Double Tree by Hilton Brownstone in Raleigh. Preventing and prosecuting Human Trafficking cases is a priority of the U.S. Department of Justice and the training is designed to bring together law enforcement and service providers to educate them about this heinous crime that plagues our nation.
Credentialed members of the media are invited to the conference.
Human Trafficking is called the modern day slavery in the United States. There is a great need to educate law enforcement personnel about how to identify and investigate these cases. There is also a need to educate service providers and law enforcement about the methods to reduce the barriers of bringing a human trafficking case to federal court for prosecution and help eliminate the obstacles victims face when seeking services. Additionally, there is a need to educate our state and local partners about the federal tools available to prosecute these crimes.
“One of the Department of Justice’s priorities is protecting vulnerable victims and holding offenders accountable, and North Carolina’s United States Attorney’s Offices are committed to working together with law enforcement and other groups to fight human trafficking,” said United States Attorney Rand.
“Human trafficking is a national epidemic and it is also happening here, in our own communities, with many of the victims and perpetrators hiding in plain sight. Over the past two years, the U.S. Attorney’s Office for the Western District of North Carolina has played an active role in raising public awareness, increasing law enforcement training and establishing partnerships with victim service providers in Western Carolina. This symposium is a continuation of our efforts to create and maintain these strong partnerships, which can be force multipliers in our fight against this form of modern day slavery,” said U.S. Attorney Tompkins.
“This event is an excellent example of the vital collaboration needed between the law enforcement and the service provider community. Efforts to confront human trafficking must include an increased awareness of the indicators of this crime by those who are most likely to encounter the victims,” said U.S. Attorney Walker.
The Symposium is also being co-sponsored by the U.S. Department of Justice, Office for Victims of Crime, the North Carolina Coalition Against Sexual Assault, the North Carolina Justice Academy, the Carolinas Institute for Community Policing, and the North Carolina Victim Assistance Network.Columbus County Man Sentenced for Drug and Gun ChargesRead the Press Release
NEW BERN – United States Attorney Thomas G. Walker announced that Friday in federal court, Judge Louise W. Flanagan sentenced Jason Antwan Williams , 26, of Columbus County to 58 months of months imprisonment, followed by 3 years of supervised release.
Williams was named in an Indictment filed on October 17, 2012, charging him with possession with the intent to distribute marijuana and cocaine; felon in possession of a firearm; and possession of a firearm with an obliterated serial number. On March 12, 2013, WILLIAMS pled guilty to those charges.
According to the investigation, WILLIAMS was the driver of a truck stopped by the Cary Police Department on April 5, 2012 after the truck left the area of an undercover drug bust. WILLIAMS was found to be in possession of marijuana, cocaine and a handgun with an obliterated serial number. WILLIAMS previously had been convicted of a felony.Investigation of this case was conducted by the Cary Police Department and the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force comprised of the Cary Police Department, Durham County Sheriff’s Office, Durham Police Department, Garner Police Department, North Carolina Alcohol Law Enforcement, North Carolina State Highway Patrol and the Raleigh Police Department. Assistant United States Attorney S. Katherine Burnette represented the government.
Former Kinston City Council Member Sentenced for Child Pornography ChargeRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today, WILLIAM WALTER BARKER 44, of Kinston, North Carolina was sentenced by Senior United States District Judge James C. Fox to 78 months imprisonment, followed by a lifetime of supervised release and a $10,000.00 fine on the charge of one count of Receipt of Child Pornography, in violation of Title 18, United States Code, Section 2252 (a)(2).
Investigation of this case was conducted by the North Carolina State Bureau of Investigation and the Freemont Police Department. Assistant United States Attorney Ethan A. Ontjes prosecuted the case.
According to the investigation, the Freemont Police Chief received a USB thumbdrive found in the Freemont Town Hall Board of Alderman meeting room near where BARKER was sitting during a meeting he attended. BARKER was employed by a CPA firm in Kinston and attended the meeting to present and discuss the town audit. The thumbdrive contained images of child pornography along with other documents belonging to BARKER. Subsequently, a search warrant of BARKER’S residence in Kinston was executed on November 29, 2012. BARKER was home at the time and admitted to possessing a thumb dive that matched the description of the thumb drive found in Freemont’s Town Hall. A laptop computer recovered during the search of BARKER’S home contained 11,025 images and 1,022 videos of child pornography.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.Cumberland County Armed Robbers Sentenced to 200 Months Imprisonment in Federal CourtRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced xavier deshawn lymas, 24, jessie gomez, 26 , and LIONEL BERNARD NEWMAN, 23, all of Fayetteville. LYUMAS received 200 months imprisonment, followed by 5 years of supervised release; gomez received 200 months imprisonment, followed by 5 years of supervised release; and NEWMAN received 200 months imprisonment, followed by 5 years of supervised release.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Cumberland County Sheriff’s Office, and the Hope Mills Police Department. Assistant United States Attorney Toby Lathan prosecuted the case.
LYMAS, GOMEZ, NEWMAN, and JOSE MORALES were named in an eight-count Indictment filed on October 3, 2012 charging them with crimes related to the robbery of businesses engaged in interstate commerce. On February 19, 2013, LYMAS , NEWMAN, and MORALES pled guilty to Conspiracy to Rob Businesses Engaged in Interstate Commerce, and Using and Carrying a Firearm During a Crime of Violence. On April 11, 2013, GOMEZ pled guilty to the same. MORALES will be sentenced at a later date.
According to the investigation, the group participated in a string of armed robberies in Cumberland County in October 2011. On October 27, 2011, LYMAS, GOMEZ, NEWMAN, and JOSE MORALES, armed with handguns, traveled to the Lake Lynn Short Stop on Gillespie Street in Fayetteville for the purpose of robbing the business. Due to the high volume of customers inside, the group chose instead to rob a person seated in his vehicle in the parking lot. With MORALES acting as the driver and NEWMAN serving as a lookout, LYMAS and GOMEZ robbed the victim at gunpoint.
The group then traveled to a Kangaroo Express store on Natal Street in Fayetteville. Wearing ski masks and gloves, LYMAS, GOMEZ, and NEWMAN entered the store while MORALES acted as the driver. GOMEZ and NEWMAN were armed with handguns. Inside, GOMEZ demanded money from the store clerk and struck the clerk in the head with his handgun. The group fled with cash and other items taken from the store.
The same evening, NEWMAN and an unindicted accomplice robbed a Kangaroo Express store on Hope Mills Road in Hope Mills. NEWMAN and his accomplice entered the store wearing ski masks and gloves. Both brandished handguns. NEWMAN pointed his handgun at a store clerk and demanded cash. The robbers fled with cash and other items.
On October 30, 2011, LYMAS, GOMEZ, and MORALES attempted to rob a Kangaroo Express on Main Street in Hope Mills. With MORALES acting as the driver, LYMAS and GOMEZ entered the store wearing ski masks and gloves, and brandishing handguns. Several Hope Mills police officers were in close proximity conducting surveillance on the store and observed LYMAS and GOMEZ as they entered. The officers followed LYMAS and GOMEZ inside and placed them under arrest before they were able to complete the robbery.U.S. Attorney's Office (EDNC) Co-Sponsors Banking Conference on Counterterrorism and Financial CrimesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that today the United States Attorney’s Office for the Eastern District of North Carolina co-sponsored the 9th Annual Counterterrorism and Financial Crimes Forum. The training was held at SAS World Headquarters in Cary, North Carolina, SAS is the world’s largest privately held software company. Approximately 400 participants including banking officials, federal agencies and local law enforcement attended the training. SAS, Ally Bank, Bank of America, PNC, and Teradata all co-sponsored the event.
Philip Mudd, former Deputy Director of the National Security Section, Federal Bureau of Investigation, served as the keynote speaker. Mr. Mudd also served as Deputy Director of the Counterterrorist Center with the Central Intelligence Agency. Other speakers included John J. Byrne, Executive Vice President of the Association of Certified Anti-Money Laundering Specialists (ACAMS); Lisa M. Grigg, Managing Director and Fraud Investigation Group Executive of Bank of America; and Dennis Lormel, President and CEO of DML Associates LLC. Mr. Lormel served as Chief of the Federal Bureau of Investigation’s Financial Crimes Program and was instrumental in establishing the Bureau’s antiterrorist financing initiative. The training also featured Jane Rhodes-Wolfe, Acting Deputy Assistant Director of the Terrorism Financing Operations Section (TFOS), Federal Bureau of Investigation.
“This event is an excellent example of the vital collaboration needed between the banking community and law enforcement. Efforts to confront violent extremists must include a watchful eye over suspicious financial transactions that may be used to fund terrorist activities both at home and abroad,” said U.S. Attorney Walker.
This event brought together participants from the financial services, regulatory and law enforcement communities to share best practices on managing the risks associated with financial crimes, including terrorism financing, fraud, sanctions compliance and money laundering. Goals of the training were to demonstrate how innovative organizations are working with their public sector partners to fight the war on terrorism, manage fraud investigations more effectively, ensure regulatory compliance and to detect and prevent money laundering among others.
SAS, located in Cary, North Carolina, is a market leader in business analytics. Founded in 1976, SAS has more than 11,000 employees and staffed offices in 55 countries. Together, the company provides software and services to more than 50,000 sites in 127 countries around the globe.
The complete training agenda is attached with more details about the Forum.
9th Annual Counterterrorism and Financial Crimes Forum Agenda
Cumberland County Armed Robbers Sentenced to 200 Months Imprisonment in Federal CourtRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced xavier deshawn lymas, 24, jessie gomez, 26 , and LIONEL BERNARD NEWMAN, 23, all of Fayetteville. LYUMAS received 200 months imprisonment, followed by 5 years of supervised release; gomez received 200 months imprisonment, followed by 5 years of supervised release; and NEWMAN received 200 months imprisonment, followed by 5 years of supervised release.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Cumberland County Sheriff’s Office, and the Hope Mills Police Department. Assistant United States Attorney Toby Lathan prosecuted the case.
LYMAS, GOMEZ, NEWMAN, and JOSE MORALES were named in an eight-count Indictment filed on October 3, 2012 charging them with crimes related to the robbery of businesses engaged in interstate commerce. On February 19, 2013, LYMAS , NEWMAN, and MORALES pled guilty to Conspiracy to Rob Businesses Engaged in Interstate Commerce, and Using and Carrying a Firearm During a Crime of Violence. On April 11, 2013, GOMEZ pled guilty to the same. MORALES will be sentenced at a later date.
According to the investigation, the group participated in a string of armed robberies in Cumberland County in October 2011. On October 27, 2011, LYMAS, GOMEZ, NEWMAN, and JOSE MORALES, armed with handguns, traveled to the Lake Lynn Short Stop on Gillespie Street in Fayetteville for the purpose of robbing the business. Due to the high volume of customers inside, the group chose instead to rob a person seated in his vehicle in the parking lot. With MORALES acting as the driver and NEWMAN serving as a lookout, LYMAS and GOMEZ robbed the victim at gunpoint.
The group then traveled to a Kangaroo Express store on Natal Street in Fayetteville. Wearing ski masks and gloves, LYMAS, GOMEZ, and NEWMAN entered the store while MORALES acted as the driver. GOMEZ and NEWMAN were armed with handguns. Inside, GOMEZ demanded money from the store clerk and struck the clerk in the head with his handgun. The group fled with cash and other items taken from the store.
The same evening, NEWMAN and an unindicted accomplice robbed a Kangaroo Express store on Hope Mills Road in Hope Mills. NEWMAN and his accomplice entered the store wearing ski masks and gloves. Both brandished handguns. NEWMAN pointed his handgun at a store clerk and demanded cash. The robbers fled with cash and other items.
On October 30, 2011, LYMAS, GOMEZ, and MORALES attempted to rob a Kangaroo Express on Main Street in Hope Mills. With MORALES acting as the driver, LYMAS and GOMEZ entered the store wearing ski masks and gloves, and brandishing handguns. Several Hope Mills police officers were in close proximity conducting surveillance on the store and observed LYMAS and GOMEZ as they entered. The officers followed LYMAS and GOMEZ inside and placed them under arrest before they were able to complete the robbery.Shaw University Employee Pleads Guilty in Government Grant Theft SchemeRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today ADEMOLA L. EJIRE, 53, pled guilty to mail fraud, in violation of Title 18, United States Code, Section 1341.
U.S. Attorney Walker stated, “Mr. Ejire was entrusted with federal grant funds earmarked for the education and nurturing of young minds in the fields of Math and Science. Unfortunately he breached that trust.”
According to the July 23, 2013, Criminal Information, EJIRE was employed at Shaw University as the Principal Investigator for the United States Environmental Protection Agency (EPA) Research Apprenticeship Program (RAP) grant, and was responsible for managing the program, for which the University was a receipient.
The EPA RAP grant provides funding for a program for specific high school students who have an interest in science and math. Students who meet the academic and attendance criteria in the eighth grade can apply for entry into the program. At the end of the application process, 10 to 12 students are chosen to enter the program in the ninth grade. This is an academic program designed to nurture their science and math background.
From 2001 to July, 2012, EJIRE fraudulently represented that his wife was an employee of Shaw University working as the EPA Program Coordinator for the EPA RAP grant and that his children were participants in the EPA RAP grant by submitting falsified timesheets. The scheme enabled EJIRE to fraudulently obtain approximately $470,000.
At sentencing, set for the Court’s November 2013, term of court, EJIRE, faces up to 20 years imprisonment.
"For years Ademola Ejire funneled grant money intended for high school students into his own accounts. The FBI and our law enforcement partners uncovered his fraudulent scheme and vow to hold those accountable who are trusted to dispense government funding, but choose instead to line their own pockets," said John Strong, Special Agent in Charge of the Charlotte Division of the FBI.
“The funds for the Research Apprenticeship Program are intended to provide an opportunity for honest, hard-working students to realize their dream of a higher education”, said Inspector in Charge Keith Fixel. “The United States Postal Inspection Service is committed to bringing those to justice who would steal those dreams through schemes involving the use of the US Mail.”
The investigation of this case was conducted by United States Environmental Protection Agency – Office of Inspector General, the Federal Bureau of Investigation and the United States Postal Inspection Service. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
Former NBA Player Sentenced to Prison for Failing to Pay More Than $600,000 in Child SupportRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced kenneth ray williams , 44, of Elizabeth City, North Carolina, to 9 months imprisonment, followed by 1 year of supervised release. WILLIAMS was also ordered to pay $661,277.00 in restitution.
Investigation of this case was conducted by the Federal Bureau of Investigation. Valuable assistance was provided by the Albermarle Child Support Enforcement Agency. Assistant United States Attorney Banumathi Rangarajan handled the prosecution on behalf of the United States Attorney’s Office.
Williams was named in an Indictment filed on July 6, 2000 charging him with willful failure to pay child support in violation of Title 18, United States Code, Section 228(a)(3). On August 23, 2000, williams pled guilty to that charge.
According to the investigation and information in the public record, WILLIAMS was first ordered to pay $2,500.00 in child support. At the time, WILLIAMS was playing basketball with the Indiana Pacers. By 1994, he was earning a salary of $750,000/year. Despite the salary, he did not pay any support. In 1995, the support award was amended to include his third child and he was ordered to pay $3,750 per month for the support of his three children.
Despite earning salaries between $90,000 and $180,000 a year between 1995 and December 2000, WILLIAMS failed to support his children. While he played basketball, drove fancy cars and lived overseas, his former wife and three children were receiving Welfare and Aid to Families with Dependent Children benefits.
In July 2001, he caused his attorney to file a motion to continue a sentencing hearing set for July 31, 2001, claiming that he could not afford to travel to the United States. Unbeknownst to his lawyer, WILLIAMS was in the United States from July 12, 2001 through July 29, 2001, playing basketball with the Boston Celtics and the Denver Nuggets. WILLIAMS left the country and has remained overseas.
WILLIAMS failed to appear for a sentencing hearing in August 2001 and a warrant for his arrest was issued. WILLIAMS remained a fugitive until he was finally arrested on March 11, 2013.Cary Collector of Child Pornography Sentenced to 180 Months ImprisonmentRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today JOHN WARREN COURTNEY, 47, was sentenced by Senior United States District Court Judge Malcolm J. Howard to 180 months imprisonment, 15 years of supervised release and a $4,000 fine for receipt of child pornography.
COURTNEY pled guilty to a Criminal Information filed on February 15, 2013, charging him of one count of Receipt of Child Pornography. According to the investigation during the years of 2011 and 2012, COURTNEY did knowingly receive 4,883 visual depictions of minors engaged in sexually explicit conduct on files containing digital images and 246 videos, all in violation of Title 18, United States Code, Section 2252(a)(2). The defendant was caught attempting to photograph a child urinating in a public bathroom at Adventure Landing in Raleigh. A subsequent examination of the defendant’s computer revealed numerous videos of nude and partially nude young boys in public restrooms at local restuarants and a swimming pool.
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 Federal Bureau of Investigation (FBI) and the Raleigh Police Department. Assistant United States Attorney Jay Exum prosecuted the case for the United States.
Former Army Sergeant First Class Pleads Guilty to Government Theft ChargesRead the Press Release
WASHINGTON – Mauricio Espinoza, 34, pleaded guilty today in the Eastern District of North Carolina to conspiring to commit mail fraud and wire fraud, to steal and convert monies belonging to the U.S. Government, and to smuggle currency into the United States as well as to theft and conversion of government property.
According to the Indictment and information in the public record, between July, 2009 and January, 2010, while deployed to Afghanistan, former Sergeant First Class Espinoza, 34, and former-Staff Sergeant Philip Wooten, 36, (who previously pled guilty to the same offenses) stole federal monies entrusted to them and which were earmarked for operational and reconstruction efforts.
Espinoza deployed to Afghanistan from July 2009 through July 2010 with a small detachment from the United States Army 7th Special Forces Group. Espinoza’s duties included that of Paying Agent. Wooten, who was assigned to the same detachment, was the Field Ordering Officer (FOO). As the FOO, Wooten was responsible for contracting with local vendors for various operational and reconstruction efforts in Afghanistan. As the Paying Agent, Espinoza was responsible for making payments to the local vendors to whom Wooten awarded contracts and for properly accounting for the expenditure of federal funds under his control. Together, as the Paying Agent and the Field Ordering Officer, Espinoza and Wooten were entrusted with U.S. funds allocated for military operations and reconstruction efforts in Afghanistan. Before their deployment and thereafter, the two soldiers planned how they would steal those funds.
Beginning in or about July 2009, Espinoza signed for and withdrew U.S. funds in the form of Afghani currency from the U.S. Finance Office on the military installation known as Kandahar Air Field (KAF). The funds were meant to finance purchases (such as provisions for the Special Forces Team) and construction projects near the team’s forward operating base. Espinoza knew that he would have to periodically return to the United States Finance Office at KAF in Kandahar, Afghanistan, to review the status of the funds that he withdrew. In advance of each trip to the Finance Office, Espinoza and Wooten falsified receipts from Afghani vendors to reflect greater amounts than were actually paid for goods and services that the Afghans had provided. Espinoza then handed in the falsified, inflated receipts to the Finance Office and kept for himself and his co-conspirator the difference between the inflated numbers and the amounts
actually paid. Thereafter, and while still at the military base in Kandahar, the conspirators arranged with an Afghani national to have the stolen funds converted into U.S. dollars.
Once in possession of the U.S. dollars, Espinoza and his co-conspirator then converted a portion of the stolen funds into U.S. postal money orders, $30,000 of which Espinoza shipped to the United States via an international carrier. Espinoza also purchased a Harley-Davidson motorcycle with some of the stolen funds.
In addition, Espinoza wired and caused to be wired some of the money electronically through Western Union to various locations in the United States and Peru. Espinoza directed at least one recipient of the wired money to transfer funds to his own bank account.
The total loss to the government exceeded $200,000.
“The greed exhibited by this former Army NCO and his co-conspirator subvert the actions of our brave service members putting their lives on the line each day in Afghanistan. This Office will continue to vigorously prosecute those who steal from the American taxpayer,” commented United States Attorney for the Eastern District of North Carolina Thomas G. Walker.
"Mauricio Espinoza disgraced his country, the Army, and his Special Forces brothers, said John Strong, Special Agent in Charge of the Charlotte Division of the FBI. “Not only did he steal from funds earmarked for use by his Operational Detachment in the Afghanistan war effort, he submitted false paperwork to try and hide his crimes. He violated the essential trust our Special Forces leaders must have in these elite warriors when operating in combat conditions in a foreign land. The results of this joint investigation prove those that violate this sacred trust will be held accountable."
“This guilty plea by a former senior non-commissioned officer in the Army’s Special Forces demonstrates the effectiveness of joint investigations by the Defense Criminal Investigative Service and other law enforcement partners,” stated Special Agent in Charge John F. Khin, Southeast Field Office, DCIS. “Former Sergeant First Class Espinoza was held accountable for conspiring with others to steal Government funds intended for our Warfighters and military operations in Afghanistan, and using the money for personal benefit. DCIS continues to aggressively combat corruption and fraud that waste precious American taxpayer dollars, especially in these times of reduced Defense spending.”
"SIGAR's agents work relentlessly to protect the American taxpayer and the reconstruction efforts in Afghanistan,” stated Special Inspector General for Afghanistan Reconstruction John F. Sopko. The Espinoza case demonstrates their outstanding work and the success of working joint investigations.”
At sentencing, set for November 7, 2013, Espinoza faces up to 5 years imprisonment for the conspiracy charge and up to 10 years imprisonment for the theft charge.
Wooten plead guilty to a criminal information on Dec. 13, 2011, which charged conspiring to commit mail fraud and wire fraud, to steal and convert monies belonging to the
U.S. Government and to smuggle currency into the United States along with aiding and abetting theft and conversion of government property. Wooten is set to be sentenced on Oct. 2, 2013.
The case was investigated by the Defense Criminal Investigation Service, United States Postal Inspection Service, Office of the Special Inspector General for Afghanistan Reconstruction, United States Army Criminal Investigation Command, and the FBI from Fayetteville, NC; Fort Walton Beach, FL; and Panama City, FL. Special assistance was provided by the U.S. Immigration and Customs Enforcement – Homeland Security Investigation. The case was prosecuted by Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina and Fraud Section Trial Attorney Wade Weems, on detail from the Special Inspector General for Afghanistan Reconstruction (SIGAR).
Two Drug Traffickers Sentenced in Operation "no Quarter"Read the Press Release
RALEIGH and new bern – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced CHRISTINA MONIQUE CAPERS , 30, of Bellflower, California, to 84 months imprisonment, followed by 5 years of supervised release. Mr. Walker also announced that today in federal court, United States District Judge Louise W. Flanagan sentenced DEVON MARQUE THOMAS, 26, of Greenville, North Carolina, to 132 months imprisonment, followed by 5 years of supervised release.
CAPERS was named in an Indictment filed on July 10, 2012, charging her with conspiracy to distribute and possession with the intent to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. On October 29, 2012, CAPERS pled guilty to the conspiracy charge.
On June 22, 2012, investigators arrested CAPERS in Greenville, North Carolina, after investigators located 4.151 kilograms of methamphetamine in the door panels of the car she was driving. The investigation revealed that CAPERS transported the methamphetamine from Los Angeles, California, to Greenville. The co-defendants in the case were sentenced by Chief Judge Dever on June 10, 2013. ISMAEL PARRILL, 32, of Long Beach, California received a 180-month sentence, LUIS GUTIERREZ PARRILLA, 46, of Houston, Texas, received a 162-month sentence, and HUMBERTO GARCIA, 26, of San Pedro, California, received a 100-month sentence.
THOMAS was named in an Indictment filed on April 10, 2012, charging him with conspiracy to distribute 5 kilograms of more of cocaine and a quantity of heroin, as well as related distribution and possession with intent to distribute cocaine and heroin counts.
Between August 2010 and March 29, 2012, the Pitt County Sheriff’s Office Narcotics Unit used informants to make 5 controlled purchases of cocaine and heroin from THOMAS. THOMAS was arrested twice in March and April of 2011 after being found in possession of cocaine during traffic stops. The investigation revealed that from 2008 until March 2012 THOMAS was responsible for distributing over 33 kilograms of cocaine, 28 grams of crack cocaine, almost 1 kilogram of marijuana and 3 grams of heroin.
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 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.
The investigations of cases in Operation “No Quarter” were 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 Investigation; 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.
Henderson Man Sentenced to over 17 Years ImprisonmentRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today, Chief United States District Judge James Dever sentenced DARNELL TYRECE HAYES, 35, of Henderson, North Carolina, to 210 months imprisonment followed by 3 years supervised release.
A Federal Grand Jury returned a Criminal Indictment on January 16, 2013, charging HAYES with one count of Possession of Ammunition by a Felon, in violation of Title 18 U.S.C. §922, and one count of Distribution of Heroin, in violation of Title 21 U.S.C. §841. On April 30, 2013, HAYES pleaded guilty to the Distribution of Heroin Charge.
The evidence in the case demonstrated that, on or about June 14, 2012, HAYES sold approximately 2.5 grams of heroin to a confidential informant working for Henderson Police Department. The evidence at sentencing established that HAYES had a long history of crimes of violence including, but not limited to, Discharging a Weapon into Occupied Property, Burning Personal Property, and Felony Speeding to Elude. HAYES also had convictions for drug trafficking, multiple assaults and multiple counts of resisting arrest.
Investigation of this case was conducted by the Henderson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rudy E. Renfer represented the government.
Convicted Felon from Mount Olive Sentenced to 46 Months in Prison for Possessing A FirearmRead 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 ANTHONY EARL RIVERS, 25, of Mount Olive, to 46 months in prison, followed by 3 years of supervised release upon conviction for Possession of a Firearm by a Convicted Felon, in violation of Title 18, United States Code, Sections 922(g) and 924.
On May 4, 2012, the Mt. Olive Police Department received a tip from a confidential informant that RIVERS, operating under the alias of “Worm”, had just been seen driving another individual who had been involved in an assault with a firearm on Claytor Street in Mt. Olive. The Mt. Olive Police Department immediately began to look for RIVERS and the individual who was reported to have committed the assault using a firearm. Officers located RIVERS and the other individual a few blocks away on Slocum Street and attempted a traffic stop. As soon as RIVERS pulled into a driveway the passenger jumped out of the vehicle and ran on foot. Mt. Olive police immediately gave foot chase, leaving RIVERS momentarily alone in the driver’s seat of his car.
RIVERS’ actions when he was alone in the car were captured on the exterior video camera of a Mt. Olive police cruiser. The video showed RIVERS quickly exiting his vehicle and leaning down into a bush located within a few feet of the car. By the time other officers arrived on the scene RIVERS was already attempting to drive away. RIVERS was stopped by other officers before he could leave.
Officers canvassed the area of the chase but were not able to locate a firearm. After searching the vehicle and discovering no firearm, RIVERS was allowed to leave the scene. Within minutes, however, officers discovered the firearm, an Armscor; model Citadel, .45 caliber semi-automatic pistol, located in the bush adjacent to the car. Officers immediately left the scene, found RIVERS, and took him into custody. While RIVERS initially denied knowledge of the firearm, he later made statements admitting that he had “stashed” the firearm.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) with the assistance of the Mt. Olive Police Department. Assistant United States Attorney William M. Gilmore represented the Government.
Child Pornography Trafficker Sentenced to 210 MonthsRead 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 MITCHELL BYRON HALES , 37, of Apex to 210 months imprisonment, followed by lifetime supervised release. HALES had previously been employed by the Wake County public school system.
HALES pled guilty to one count of distribution of child pornography in January 2013. Undercover investigators from the FBI found HALES online sharing images of child sexual abuse with others. After obtaining a search warrant, the FBI conducted a forensic examination of HALES’ computer equipment, which showed that HALES had amassed thousands of pictures and hundreds of videos of children being sexually abused, was communicating with others about the material, and had traded his collection extensively with others.
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 led by the Federal Bureau of Investigation and the prosecution was coordinated with the Wake County District Attorney’s office. Assistant United States Attorney Jay Exum prosecuted the case for the United States.
Career Offender Sentenced to 188 Months for Bank RobberyRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever, III sentenced James Robert Lisenby , 56, formerly of Oxford, North Carolina to 188 months imprisonment, followed by 3 years of supervised release. LISENBY was ordered to pay a $100.00 special assessment and restitution of $1,643.00 to SunTrust Bank, Oxford, North Carolina.
James Robert Lisenby was named in an Indictment filed on April 18, 2012, charging him with Bank Robbery, in violation of Title 18 U.S.C. § 2113(a). On April 23, 2013, Lisenby pled guilty to that charge.
According to the investigation, on January 17, 2012, LISENBY entered the SunTrust Bank in Oxford, North Carolina, carrying a bag and wearing a ski mask and gloves, with what appeared to be a firearm sticking out of his pocket. LISENBY, then approached the counter and demanded money from four tellers and, after receiving the money and placing it in the bag, he fled the bank on foot.
Investigation of this case was conducted by the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force, Oxford Police Department, and the Granville County Sheriff’s Office. Assistant United States Attorney Thomas B. Murphy represented the government.
Wayne County Tax Preparer Sentenced to Federal PrisonRead 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 Tracie jones mathis , 47, of Goldsboro, North Carolina, to 57 months imprisonment, followed by 3 years of supervised release. Additionally, she was ordered to pay $1,094,742.00 in restitution joint and severally with Evelyn Gomez-Allen.
MATHIS was named in a Criminal Information filed on September 20, 2012, charging her with conspiring to defraud the United States with respect to claims, in violation of Title 18, United States Code, Section 286. On January 16, 2013, MATHIS pled guilty to that charge.
According to the investigation, MATHIS and her co-conspirators agreed to defraud the United States by engaging in a scheme to obtain the payment of fraudulent claims through the filing of materially false income tax forms. Particularly, MATHIS and her co-conspirators engaged in the fraudulent manufacturing of W-2 forms and identification documents to serve as supporting documentation for fraudulent 1040 forms.
"The defendant pleaded guilty to defrauding the government of nearly $2 million in phony tax returns, thereby enriching herself at the expense of the American tax payer," said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations (HSI) in Atlanta. "HSI will continue to work with our partners at the IRS and the U.S. Attorney’s Office to hold accountable those who seek to game the system through criminal activity.” Nicholson oversees HSI investigations in Georgia and the Carolinas.
"Tax fraud schemes rob the United States of needed funds," stated Special Agent in Charge, Jeannine A. Hammett, Internal Revenue Service Criminal Investigation. "IRS-CI will vigorously pursue those who perpetrate these crimes in an effort to defraud the United States government."
Investigation of this case was conducted by Homeland Security Investigations, the Internal Revenue Service Criminal Investigation, and the Wilson Police Department.
Greenville Drug Trafficker Sentenced in Operation "No Quarter"Read 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 MARIO CARMON , 33, of Greenville, North Carolina, to 100 months imprisonment, followed by 4 years of supervised release.
CARMON was named in an Indictment filed on September 12, 2012 charging him with conspiracy to distribute heroin and crack cocaine as well as distributing heroin and crack cocaine. On November 14, 2012, CARMON pled guilty to conspiracy charge.
Between December 7 and December 12, 2011, the Greenville Regional Drug Task Force made four controlled purchases of controlled substances from CARMON, including heroin and crack cocaine. On March 24, 2012, investigators executed a search warrant at 307 Manhattan Avenue, where several of the aforementioned controlled purchases had taken place. Officers encountered CARMON attempting to flee the residence; however, he was detained. On the kitchen counter, officers located 10 grams of cocaine base, and a bindle of heroin. CARMON claimed the drugs as his, and admitted to selling drugs. Further investigation revealed that CARMON had been selling heroin and crack cocaine since 2007.
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 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.
The investigations of cases in Operation "No Quarter" were 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 Investigation Division; 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.
Elizabeth City Man Sentenced for Drug Trafficking and Money LaunderingRead the Press Release
WILMINGTON – United States Attorney Thomas G. Walker announced that in federal court today, Senior United States District Judge James C. Fox sentenced DESMOND BERTRAM WHITE , 35, of Elizabeth City, North Carolina to 210 months imprisonment, followed by 5 years of supervised release.
WHITE was named in a Criminal Information filed on April 24, 2013 charging him with Conspiracy to Distribute and Possess with the Intent to Distribute 280 Grams or More of Cocaine Base (Crack) as well as Money Laundering. On April 29, 2013, WHITE pled guilty to those charges.
According to the investigation, WHITE was part of a drug trafficking conspiracy in the northeast portion of North Carolina. This drug trafficking organization distributed cocaine and cocaine base (crack) throughout that region. Additionally, WHITE and others would use the proceeds from the drug trafficking to finance a dog fighting ring that also operated in that area and other areas along the East Coast. WHITE was, conservatively, held accountable for distributing over 6 kilograms of cocaine base (crack).
Investigation of this case was conducted by the U.S. Drug Enforcement Administration and the Elizabeth City Police Department. Assistant United States Attorney, Rudy E. Renfer, represented the government.
Owner of Rocky Mount Based Tax Return Preparation Business Pleads Guilty to ConspiraracyRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, LARRY D. HILL, JR., a resident of Rocky Mount, N.C., pleaded guilty before Senior United States District Judge W. Earl Britt to one count of conspiring to submit false claims for federal income tax refunds to the Internal Revenue Service (IRS), and one count of filing a false 2010 federal income tax return.
“As a local businessman, Larry Hill has held himself out to the public as the ‘people’s champ.’ His guilty plea today to a sweeping tax fraud conspiracy shows us that he was very much the opposite,” commented U.S. Attorney Walker.
“In these challenging economic times, Mr. Hill admitted to conspiring to file false federal income tax returns. In essence, he used the IRS as his personal piggy bank, diverting scarce tax dollars from necessary government services to his pocketbook to fund his lifestyle,” said Special Agent in Charge Jeannine A. Hammett, IRS-Criminal Investigation.
According to the charging documents, 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 returns for HTS customers that claimed, collectively, over $14 million in tax refunds. Most 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 criminal information, HILL personally collected, on average, $1,000 or more from each such refund.
At sentencing, HILL faces a statutory maximum penalty of 13 years imprisonment, a $500,000 fine, 4 years of supervised release, and $200 in special assessments.
The investigation of this case was conducted by IRS-Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Adam F. Hulbig.
Child Pornographer Sentenced to 30 Years in Federal PrisonRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court today, Senior United States District Judge W. Earl Britt sentenced BRUCE WAYNE LORETTE , 34, of Leland to 360 months imprisonment, followed by a lifetime of supervised release.
Mr. Walker stated, “The horror of the abuse in this case is unspeakable. The sentence Judge Britt delivered today sends just the message it should: the sexual abuse of the most vulnerable members of our community will not be tolerated.”
LORETTE was first charged in an 11-count Indictment filed on October 24, 2012 charging him with 10 counts of receiving child pornography and one count of possession. After further evidence was discovered, LORETTE was named in a Criminal Information filed on March 7, 2013 charging him with producing child pornography. On May 13 2013, LORETTE pled guilty to that charge.
According to the investigation, LORETTE was first detected by undercover police who found that he was offering child pornography over a peer-to-peer network. After executing a search warrant at his Leland residence and the commencement of forensic examination of his computer equipment, investigators learned that LORETTE was not merely downloading and offering child pornography for download, but that he was creating child pornography of his own by victimizing an infant.
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 led by the North Carolina State Bureau of Investigation and Federal Bureau of Investigation. Assistant United States Attorney Jay Exum prosecuted the case for the United States.
Jacksonville Cocaine Distribution Organization Dismantled "BLEW NI’RU"Read the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced the recent completion of an Organized Crime Drug Enforcement Task Force (OCDETF) prosecution targeting Cocaine Trafficking in Jacksonville, North Carolina and the surrounding areas. The results of this investigation, code named Operation BLEW NI’RU, was a total of 26 convictions and the sentencing of 23 defendants to date. This drug trafficking organization operated in the Jacksonville area since the mid 1990’s and was responsible for distributing large amounts of cocaine powder and crack.
Mr. Walker statedThese defendants created havoc on the law abiding residences in the area by their distribution of large amounts of cocaine. My office stands ready to prosecute organizations like this to the full extent of the law to hold those who put profit ahead of public safety accountable.”
Sentences in these cases range from 24 months to 262 months imprisonment. See the attached with a list of individual defendants and their sentences. Operation BLEW NI’RU spanned 4 years and 5 North Carolina counties.
“This investigation, comprised of Federal, State and local law enforcement partners, required a significant investment of investigative manpower and resources resulted in a considerable impact to the level of drug activity in our community.” stated Deputy Chief Tim Malfitano, Deputy Director of Public Safety.
The Jacksonville Police Department’s Special Operation Division led a multi-agency, collaborative effort to target drug activity in the community. Other agencies involved in this investigation included the North Carolina State Bureau of Investigation, Federal Bureau of Investigation, Carteret County Sheriff’s Office and the Craven County Sheriff’s Office. Assistant United States Attorney Rudy E. Renfer prosecuted the cases for the government.
(Download BLEW NI’RU Conviction List)
Henderson Man Sentenced to 20 Years ImprisonmentRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday, Chief United States District Judge James Dever sentenced TYSHIK-KEE WILLIAMS, 21, of Henderson, North Carolina, to 240 months imprisonment followed by 3 years supervised release.
A Federal Grand Jury returned a Criminal Indictment on January 16, 2013, charging WILLIAMS with one count of Possession of a Firearm by a Felon, in violation of Title 18 U.S.C. §922, and 2 counts of Distribution of Heroin, in violation of Title 21 U.S.C. §841. On April 9, 2013, WILLIAMS pleaded guilty to all counts without a plea agreement.
The evidence in the case demonstrated that, on or about March 30, 2011, WILLIAMS was present in a hotel room during a search of that room by law enforcement. Found during the search was a loaded .25 caliber handgun, other ammunition and a large quantity of heroin. WILLIAMS admitted that the .25 caliber firearm was his. The evidence also demonstrated that on or about January 18, 2012, and February 1, 2012, respectively, WILLIAMS sold a quantity of heroin to an informant working with the Henderson Police Department. Evidence presented at sentencing demonstrated that WILLIAMS was responsible for multiple shootings and robberies in the Henderson area and that, while being held on state charges, WILLIAMS solicited robberies and drug trafficking activities from other individuals of the Money Gang Mob (MGM).
Investigation of this case was conducted by the Henderson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rudy E. Renfer represented the government.
Clayton Drug Dealer Sentenced to 30 Years ImprisonmentRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Terrence Boyle sentenced CALVIN DWIGHT MITCHELL, 27, of Clayton, North Carolina, to 360 months imprisonment followed by 10 years supervised release.
A Federal Grand Jury returned a Criminal Indictment on August 8, 2012, charging MITCHELL with one count of Conspiracy to Distribute and Possess with the Intent to Distribute 280 Grams or More of Cocaine Base (Crack) and Quantity of Cocaine, in violation of Title 21 U.S.C. §846, and one count of Distribution of Cocaine, 1 count of Aiding and Abetting Distribution of Cocaine, in violation of Title 21 U.S.C. §841. On May 24, 2013, after a 2 day trial, a jury convicted MITCHELL of the drug conspiracy and distribution counts.
The evidence in the case demonstrated that from at least March 2001, up to and including May 24, 2012, MITCHELL was involved in a drug conspiracy with several other individuals in the Smithfield area in a loose conspiracy to distribute cocaine and crack cocaine. Specifically, MITCHELL made statements immediately after his arrest and identified his sources of supply in the Smithfield area. All told, as part of the conspiracy, MITCHELL was held accountable for over 152 kilograms of crack cocaine. The evidence further showed that during the period of the drug conspiracy, MITCHELL sold crack cocaine to several informants, was convicted approximately nine times for selling cocaine, and sold approximately 27 grams of powder cocaine to an informant on May 24, 2012. Finally, during the trial, evidence was introduced showing that MITCHELL was involved in threats made to a confidential informant in July 2012.
Investigation of this case was conducted by the Johnston County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rudy E. Renfer represented the government.
Veteran Sentenced to Two Years in Prison for Lying to Obtain Disability BenefitsRead the Press Release
Raleigh, North Carolina - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever sentenced ANTHONY PATRICK STANFORD, 39, of Fayetteville, NC, to 24 months in prison, followed by 3 years of supervised release, upon conviction for Making Material False Statements to the Department of Veterans Affairs (VA), in violation of Title 18, United States Code, Section 1001, and Making Material False Statements to the Social Security Administration (SSA), in violation of Title 18, United States Code, Section 1001. Chief Judge Dever further ordered STANFORD to pay restitution of $519,293.07 to the VA and $7,575.30 to the SSA.
U.S. Attorney, Thomas G. Walker stated, “This case sends a strong message that those who steal the limited, taxpayer funds set aside for our servicemen and women who have suffered catastrophic injuries, will pay a steep price for their crimes. This office commends the work of the VA and SSA for their hard work to achieve justice in this case.”
STANFORD served in the United States Army from February 1, 1996 to June 30, 2005. Upon completion of basic training, STANFORD was assigned as a laundry specialist, but was also engaged in marching, running and field activities, until 1999. In December of 2005, STANFORD underwent a joint evaluation during which he made various representations, including that he was unable to stand, walk, lift, or hold objects. STANFORD further represented that for most of his daily living activities, including feeding, dressing, bathing, and using the toilet, he required help from another person.
Based upon STANFORD’s representations to the VA physician, the VA found that STANFORD had suffered a 100% loss of use of both of his upper and lower extremities. The VA further found that STANFORD qualified for various forms of financial assistance from the VA, including “aid and attendance” benefits, automobile and adaptive equipment benefits, and specially adapted housing benefits. Among other benefits, STANFORD began to receive monthly compensation in excess of $7,000 in connection with his alleged losses. STANFORD received these benefits during the period between 2005 and 2012. In addition to his application for benefits with the VA, STANFORD also applied for and obtained disability benefits with the United States Social Security Administration (SSA). In total, STANFORD collected $521,003.07 from the VA, and another $7,575.30 from the SSA.
Although STANFORD collected monthly compensation payments and other benefits from the VA and the SSA under the pretense of a complete loss of use of his upper and lower extremities, STANFORD could, in fact, use his upper and lower extremities. STANFORD did not require assistance to feed himself, dress himself, bathe himself, or to use the toilet as claimed. STANFORD was not wheelchair bound, and in fact, could walk and drive a car. STANFORD also had the ability to pick up and carry objects, and to carry on meaningful physical labor. During the course of the scheme, STANFORD even took a trip to Disney World without the aid of a cane, walker, or wheelchair.
On March 16, 2011, STANFORD presented to a VA physician for a continuing evaluation of his physical condition. During the evaluation STANFORD falsely represented that he required help from another person for feeding, bathing, and use of the toilet. Additionally, on October 4, 2011, in Fayetteville, North Carolina, STANFORD presented himself before representatives of the SSA for a continuing disability review. During the course of the review, STANFORD falsely represented that he could not dress, bathe, take medicine, prepare meals, do chores, shop, walk, stand, or lift objects over two pounds, without assistance from another person. STANFORD subsequently admitted to these falsehoods and indicated that he exaggerated his conditions in connection with both reviews because if he had told the truth then his benefits would have been terminated.
In total, STANFORD improperly collected $521,003.07 from the VA, and another $7,575.30 from the VA. At sentencing, the court ordered STANFORD to repay the stolen funds as restitution. STANFORD’s future VA benefits have been garnished.
Investigation of this case was conducted by the Department of Veterans Affairs Office of the Inspector General, and the Social Security Administration Office of the Inspector General. Assistant United States Attorney William M. Gilmore represented the United States.
Cumberland County Child Sex Trafficker Pleads GuiltyRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today CHRISTOPHER JASON WILLIAMS, 33, of Fayetteville, North Carolina pleaded guilty before Chief United States District Judge James C. Dever, III, 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 partialy 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.
At sentencing, WILLIAMS faces not less than 10 years nor more than life imprisonment along with a fine of up to $250,000 and up to a lifetime of supervised release.
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 is prosecuting the case for the United States.
Wendell Man Convicted on Narcotics Distribution and Weapons ChargesRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that yesterday, FELIX A. OKAFOR, 52, of Wendell, North Carolina, was convicted by a federal jury of 25 drug and firearms offenses including conspiracy to distribute 100 grams of heroin and 100 kilograms of marijuana, four counts of distribution of marijuana, six counts of distribution of heroin, distribution of drugs within 1000 feet of a school, and 11 counts of possession of a firearm during a drug trafficking crime.
During the four day trial, the government presented evidence that between on or about November 8, 2011, through on or about January 11, 2012, OKAFOR sold various quantities of marijuana and heroin multiple times to a confidential informant at the defendant’s convenience store, the Flying Eagle, in Benson, North Carolina. OKAFOR possessed a gun in his pocket during each of these transactions. Additionally, the defendant used the Flying Eagle to cut and package the drugs to sell. The store was within 1000 feet of Benson Middle School. OKAFOR faces a minimum of 265 years and a maximum of 560 years imprisonment at sentencing.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives the North Carolina State Bureau of Investigation and the Johnston County Sheriff’s Office. Assistant United States Attorney Ethan A. Ontjes prosecuted the case.
Jacksonville Man Sentenced for Drug Distribution and Firearms ViolationRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court yesterday, Senior United States District Judge Malcolm J. Howard sentenced CORNELL ALLEN MELVIN, 28, to 200 months imprisonment, followed by a term of 6 years supervised release, a $5,000 fine and $200 special assessment. MELVIN received an enhanced sentence due to his criminal record and status as a career offender.
A Federal Grand Jury returned a nine-count Criminal Indictment on January 3, 2013. On April 9, 2013, MELVIN pled guilty to Distribution of a Quantity of Cocaine Base (Crack), in violation of Title 21, United States Code, Section 841(a)(1), and Possession of a Firearm by a Felon, in violation of Title 18, United States Code, Section 922(g)(1) and 924(a)(2).
According to the investigation, MELVIN engaged in drug trafficking and firearms violations in the Jacksonville area from at least March 2012 to June 2012. On six occasions, MELVIN sold cocaine base (crack) to a confidential informant operating under the direction of law enforcement. MELVIN also sold the confidential informant two firearms, one with an obliterated serial number. MELVIN had previously been convicted of numerous felony crimes and was prohibited from possessing a firearm.
This case was part of the Project Safe Neighborhoods 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 by the Jacksonville Police Department. Assistant United States Attorney Toby Lathan represented the government.
United States Attorney’s Office Announces Transfer of over $500,000.00 to the New Hanover County Sheriff’s OfficeRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced today the transfer of $505,503.06 in forfeited currency to the New Hanover County Sheriff’s Department. The transfer was authorized by the federal equitable sharing program enacted by Congress in the Comprehensive Crime Control Act of 1984 and administered by the United States Marshal’s Service. Under the program, local and state law enforcement agencies that assist in federal investigations which lead to the forfeiture of property may share in the proceeds. The share received reflects their contribution to the investigation and may be used for any approved law enforcement purpose.
United States Attorney Thomas G. Walker stated, “This significant forfeiture of funds from illegal activities will now be used to benefit the public and enhance law enforcement in New Hanover County. The joint investigation of the matter by federal authorities and the New Hanover County Sheriff’s Office is a testament to how teamwork plays a priceless roll in the investigation of crime.”
In FY 2012 alone, over $7.5 million dollars of forfeited property was equitably shared by the federal government with 105 state and local law enforcement agencies in the 44 counties of the Eastern District of North Carolina. Funds have been used for equipment, training, improvements to buildings, and salaries for new positions, among other things. Under federal guidelines, equitably shared funds must supplement and enhance law enforcement budgets and not supplant already budgeted funds.
The investigation of this case by the New Hanover County Sheriff’s Office, in conjunction with the Drug Enforcement Administration, uncovered a trail of drug dealing and attempted murder by deceased Canadian Jonathan MacDonald that stretched as far as Southern California and Arizona. The court ultimately rejected claims to the currency by the alleged heirs of MacDonald and determined that the currency was drug proceeds.
Feds Sue Under Clean Water Act to Prevent Sewage Overflow into the Cape Fear River WatershedRead the Press Release
RALEIGH – United States Attorney Thomas G. Walker announced today a Clean Water Act (CWA) settlement with the City of Wilmington, New Hanover County and the Cape Fear Public Utility Authority (Authority) in North Carolina. The proposed settlement set forth in a consent decree will resolve these parties’ liability for violations of the Federal Clean Water Act, including unauthorized overflows of untreated raw sewage. The consent decree requires the parties to pay a civil penalty of $300,000 and implement measures to bring the sewer system into compliance.
“Sewage overflows into the Cape Fear watershed cannot be tolerated. This action shows our continued commitment to protecting our environment,” said United States Attorney Thomas G. Walker.
In 2008, the City and the County transferred its respective sewer systems to the newly formed Authority. Since taking over responsibility for these sewer systems, the Authority has implemented numerous remedial measures to the sewer systems. Pursuant to the proposed settlement announced today, the Authority has agreed to make further improvements to the sewer systems to eliminate unauthorized overflows with the goal of achieving compliance with the CWA. When wastewater systems overflow, untreated sewage and other pollutants can be released into local waterways, threatening water quality and contributing to beach closures and disease outbreaks.
“Sewage overflows are a significant problem in the Southeast because of inadequate and aging infrastructure,” said EPA Acting Regional Administrator, Stan Meiburg. “Through this agreement, the Authority, the City of Wilmington and New Hanover County are taking positive steps in correcting long-standing sewage overflow problems. Ultimately, this will benefit the local community and improve water quality in the Cape Fear River watershed.”
The consent decree requires the Authority to implement specific programs designed to ensure proper management, operation and maintenance of its sewer systems. In order to address the problem of wet weather overflows of raw sewage from the sewer lines, the Authority will develop and implement a comprehensive sewer system assessment and rehabilitation program. The Authority will also implement certain capital projects designed to remediate known defects in the sewer systems.
Keeping raw sewage and contaminated stormwater out of the waters of the United States is a primary enforcement initiative for 2011 to 2013. The initiative focuses on reducing sewer overflows, which can present a significant threat to human health and the environment. These reductions are accomplished by obtaining municipalities’ commitments to implement timely, affordable solutions to these problems, including the increased use of green infrastructure and other innovative approaches.
Drug Trafficker Sentenced in Operation “No Quarter”Read 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 FILIBERTO COBARRUBIAS-HERRERA, 39,of Madison, North Carolina, to 72 months of imprisonment and 4 years of supervised release upon his release from the Bureau of Prisons. COBARRUBIAS-HERRERA previously pled guilty to conspiracy to distribute and possess with the intent to distribute 100 kilograms or more of marijuana.
COBARRUBIAS-HERRERA was arrested in Greenville on June 1, 2012, after hefacilitated a delivery of approximately 118 pounds of marijuana to an undercover law enforcement officer. The investigation revealed that COBARRUBIAS-HERRERA and other members of the conspiracy were responsible for the distribution of over 1,000 kilograms of marijuana throughout North Carolina between March 2011 and June 1, 2012.
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 Investigation Division; 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.
Correctional Institution Employee Sentenced on Bribery Related OffenseRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced today RHONDA BOYD, 28,a formercorrectional officer at the Rivers Correctional Institution, Winton, North Carolina, was sentenced today by United States District Judge Louise W. Flanagan to 20 months imprisonment, to be followed by 2 years of supervised release.
The investigation revealed that BOYD, while employed as a correctional officer at the Rivers Correctional Institution, conspired to commit bribery in violation of Title 18 United States Code, Sections 371. The evidence showed that for approximately 6 months in 2011 and 2012, BOYD accepted payments from inmates within the facility in return for smuggling in contraband items such as cell phones and cigarettes.
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.
Numerous Attorneys, Mortgage Brokers, Real Estate Professionals, and Devleopers Face Prison Time in Connection with Multiple Mortgage Fraud Schemes Uncovered in Eastern North CarolinaRead the Press Release
RALEIGH – The United States Attorney’s Office announced the unsealing of numerous federal cases and other court actions involving attorneys, mortgage brokers, real estate professionals, and developers, who are charged with federal crimes pertaining to mortgage fraud.
“Mortgage fraud impacts families and devastates neighborhoods. The FBI is committed to protecting our nation’s economy by aggressively investigating those who attempt to undermine the financial stability of our housing market,” said John Strong, Special Agent in Charge of the Charlotte Division of the FBI.
“The Federal Deposit Insurance Corporation - Office of Inspector General is committed to its partnerships with others in the law enforcement community as we address mortgage fraud cases throughout the country. The American people need to be assured that their government is working to ensure integrity in the financial services and housing industries and that those involved in criminal activities that undermine that integrity will be held accountable,” commented the Federal Deposit Insurance Corporation Inspector General Jon T. Rymer.
“We recognize the negative impact that mortgage fraud has on our economy and on our communities. With actions like those announced today, a very clear message is sent: if you don’t operate within the boundaries of the law, we will not hesitate to act. We will continue to work with our law enforcement partners to ensure the US Mail is safe and not used to further schemes like this”, said Inspector in Charge Keith Fixel, US Postal Inspection Service.
HUD-OIG Special Agent in Charge Lester Fernandez said: “We are especially committed to aggressively pursuing mortgage and real estate professionals who instead of honoring their fiduciary responsibilities, abuse their positions and cause harm to FHA’s mortgage insurance programs. HUD-OIG is committed to working cooperatively with our law enforcement partners to bring these individuals to justice and protect the integrity of our programs.”
“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. "Partnering with the United States Attorney’s Office and other federal agencies, IRS Criminal Investigation is committed to combating mortgage fraud and other financial crimes to protect the American homeowner and the national economy."
Each of the following cases is being prosecuted by the Economic Crimes Section of the United States Attorney’s Office as a part of its Mortgage Fraud Task Force which was created in June of 2010. The investigation of these cases has been jointly conducted by various agencies, including the Federal Bureau of Investigation (FBI), the United States Department of Housing and Urban Development Office of the Inspector General (HUD-OIG), the Internal Revenue Service Criminal Investigation (IRS-CI), the United States Postal Inspection Service, the Federal Deposit Insurance Corporation - Office of the Inspector General (FDIC-OIG) and the Raleigh Police Department. Assistant United States Attorney William M. Gilmore represents the United States in each of these matters.
- TRIPLE-R ENTERPRISES ET AL. INVESTIGATION
- EZN HOMES / PREMIER PROPERTIES INVESTIGATION
- ALPINE PROPERTIES, ET AL. INVESTIGATION
- RBR CAPITAL ET AL. INVESTIGATION
Chief United States District Judge James C. Dever ordered the unsealing today of the cases against mortgage broker DEXTER TIRRELL JONES, 42 of Raleigh; developer RICKY LAMONT CONGLETON, 43, of Zebulon; closing attorney PHILLIP GRAHAM ROSE, 42 of Raleigh; developer VINCENT MALDINI, 46, of Seabright, New Jersey; and developer JOHNNY RAY PEELE, 43, of Wake Forest. The United States Attorney’s Office also announces the filing of criminal charges against JOSEPH CARL HOLLIS, 35, of Raleigh; developer DWAYNE THOMAS HALL, 49, of Wake Forest, and former real estate broker, TRESHELL MAYO HERNDON, 39, of Raleigh. JONES, CONGLETON, ROSE, MALDINI, PEELE, HALL, and HERNDON, are each charged in a one-count criminal information with Conspiracy to Commit Bank and Wire Fraud (and in some instances, also Conspiracy to Commit Mail Fraud), in violation of Title 18, United States Code, Section 1349, which carries a maximum penalty of 30 years in prison and a $1 million fine, or twice the gain or loss from the conspiracy, whichever is greater. HOLLIS is charged with Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371, which carries a maximum penalty of up to 5 years in prison and a fine of up to $250,000, or twice the gain or loss from the conspiracy, whichever is greater.
The charging documents collectively allege that between 2003 and 2009, CONGLETON, HERNDON, PEELE, HALL, MALDINI, JONES, HOLLIS, ROSE, and others known to the United States Attorney, were involved in a conspiracy to defraud numerous banks and lenders in the United States, resulting in mortgage loan disbursements exceeding $20 million, $5 million in loan proceeds, and losses exceeding $1 million. The conspiracy further resulted in substantial losses to the United States Department of Housing and Urban Development (HUD) through its Federal Housing Administration (FHA) program.
The charging documents indicate that various developers in the scheme, including but not limited to CONGLETON, operating through Triple R Enterprises, LLC; HERNDON, operating through Herndon & Herndon Enterprises, LLC; HALL, operating through Dwayne T. Hall Builders; PEELE, operating through P.A.P’s Custom Home Builders, LLC and C and P Custom Homes, LLC; and MALDINI, operating through NY Construction, LLC, unlawfully profited from the sale of properties purchased or developed by the conspirators to individuals who did not have the financial means to purchase the properties, identified in the charging documents as “straw buyers”. To execute the scheme, CONGLETON, HERNDON, HALL, PEELE, MALDINI, and others involved in the scheme referred to as “Builders”, would cause entities owned or controlled by them to purchase and develop a property for quick resale. The builders caused individuals, referred to herein as “Intermediaries”, to locate individuals who were willing to allow their name and credit to be used to purchase properties from the Builders. The Intermediaries, including but not limited to HOLLIS, MALDINI and then mortgage broker, JONES, assisted the straw buyers to complete a loan application with a lender. For their services to the Builders, the conspirators paid the Intermediaries a kickback, or lump sum of cash, from the loan proceeds used by the straw buyers to purchase the properties from the Builders.
Conspirators enticed the straw buyers to participate in the scheme by making certain promises and representations including, but not limited to the following: (1) The straw buyers would be paid a sum of cash for purchasing the properties, (2)the straw buyers would not be required to make a down payment, (3) the straw buyers were told that the homes would be rented and the rental income would be used to pay the mortgage,(4) the straw buyers would not be required to make interest payments on the mortgage loans utilized to purchase the properties from the Builders.
CONGLETON, HERNDON, HALL, PEELE, MALDINI, and other Builders executed contracts to sell properties to the straw buyers for their appraised value, but set aside 15 to 20% of the sales price to use as the straw buyer’s down payment, and to pay kickbacks to the straw buyers and others participating in the scheme. The Builders further obtained and caused others to obtain cashier’s checks from accounts owned or controlled by the Builders to cover the down payment obligations of the straw buyers. The cashier’s checks were written to make it appear to lenders and banks that the straw buyers were providing the down payment funds when, in fact, such funds came from the Builders. These cashier’s checks were given to a closing attorney who handled the sale of the property from the Builder to the straw buyer.
Raleigh attorney PHILLIP GRAHAM ROSE served as the closing attorney on some, but not all, real estate transactions between Builders and straw buyers that were funded by banks and mortgage lenders in the scheme. In connection with the transactions involving the Builders and straw buyers, ROSE created and executed, and had the buyers and sellers execute, HUD-1 settlement statements that falsely indicated that the borrower brought cash to the closing when, in fact, as ROSE knew, the cash was provided by the Builders, including CONGLETON, HERNDON, HALL, PEELE, MALDINI, and others. ROSE and his staff transmitted the false HUD-1 settlement statements via mail and interstate wires to banks and mortgage lenders who relied upon them in funding the transactions. The Builders and straw buyers executed the HUD-1 settlement statements reflecting that the straw buyers were making the down payment on the properties, when in fact, the down payments were made by the Builders.
Because of the foregoing actions, banks and other lenders were deceived into disbursing loan proceeds to fund the purchase of the properties from CONGLETON, HERNDON, HALL, PEELE, MALDINI, and other Builders. The banks and lenders issued loans they either would not otherwise have made, or issued loans on terms they would not otherwise have authorized, had the Builders and others not concealed the true terms of the transactions, the actual qualifications and intentions of the straw buyers, the promises and representations made by the Builders and others to the straw buyers, and the false down payments of the straw buyers as reflected on the HUD-1 settlement statements.
Rental income was collected and sometimes not forwarded to pay the mortgage, as promised. The Builders also did not always make interest payments on loans issued to the straw buyers. As a result of the scheme, straw buyers were left accountable for loans that they did not have the financial means to repay, and banks were forced to initiate foreclosure proceedings and sell the properties at a loss.
In an effort to recover losses associated with the scheme, the United States Attorney’s Office, with the cooperation of the various federal agencies participating in the Mortgage Fraud Task Force, and the United States Marshal’s Service, has seized or encumbered various parcels of real property and other property in North Carolina deemed to be forfeitable to the United States as criminal proceeds of the offense.
ROSE, JONES, CONGLETON, and MALDINI have each admitted their their role in the scheme and are awaiting sentencing, anticipated to occur later in 2013. PEELE is scheduled to appear on the charges on July 15, 2013. HERNDON, HALL, and HOLLIS are each scheduled to appear on the charges on August 19, 2013.
The investigation of this matter is ongoing and anyone with knowledge is encouraged to contact the FBI at (704) 672-6100. If you believe that you are a victim in connection with this investigation please contact the Victim/Witness Coordinator for the United States Attorney’s Office at (919) 856-4003.
Chief United States District Judge James C. Dever ordered the unsealing today of the cases against real estate developers DAVID LEWIS JOHNSON, 39 of Cary, and ARTHUR LEE BARNES, JR., 46 of Rocky Mount. The BARNES and JOHNSON cases are related to the pending cases against real estate agent MARK TKAC, 47, of Raleigh, former mortgage broker MARK THOMAS BOWE, 56, of Jonesboro, Georgia, LILLIANA DELIA DEIAC, 43, of Jamaica, New York, and the recently concluded case against closing attorney JEFFERY SCOTT TAGGART, 48, of Winterville. JOHNSON, BARNES, and TKAC, were each charged in a one-count criminal information with Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 1349, which carries a maximum penalty of 30 years in prison and a $1 Million fine. TAGGART was charged with Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371, which carries a maximum penalty of 5 years in prison and $250,000 in fines, and Subscribing to a False Income Tax Return in violation of Title 26, United States Code, Section 7206(1), which carries a maximum penalty of 3 years in prison and a $100,000 fine, plus costs of prosecution. BOWE was charged in an indictment with Conspiracy to Commit Wire and Bank Fraud, in violation of Title 18, United States Code, Section 1349; Bank Fraud, in violation of Title 18, United States Code, Section 1344; Wire Fraud, in violation of Title 18, United States Code, Section 1343; and Making False Statements to Federally Insured Financial Institutions, in violation of Title 18, United States Code, Section 1014; all of which carry a maximum penalty of 30 years in prison and a $1 Million fine.
The criminal informations for JOHNSON, BARNES, TKAC, and TAGGART collectively allege that between September of 2002 and May of 2008, JOHNSON, BARNES, TKAC, and TAGGART entered into an agreement to defraud banks and home mortgage lenders located throughout the United States. The charges indicate that JOHNSON, operating through EZN Homes, Inc., BARNES, operating through Premier Investments, Inc., and TKAC recruited investors, who were in fact “straw buyers,” to secure home mortgage loans under the guise of an investment plan. The straw buyers allowed the conspirators to use their name and credit to purchase properties and obtain loans from banks and mortgage lenders. The straw buyers lacked the financial means to service the debt on the loans acquired in their names. The straw buyers also did not have a long-term interest in the properties that the conspirators caused to be purchased in their names. The conspirators induced the straw buyers to allow their name and credit to be used by making various representations, including, but not limited to, the promise of a cash kickback from the loan proceeds disbursed at the time of the real estate closing.
TKAC, a licensed real estate broker at the time, participated in the conspiracy first by acting as a straw buyer, and later recruiting others to serve as straw buyers to facilitate the scheme by JOHNSON and BARNES.
The conspirators directed straw buyers to conduct the real estate closings with co-conspirator attorney TAGGART. TAGGART prepared false HUD-1 settlement statements for execution by the straw buyers as a part of the real estate closing and loan funding process. TAGGART then caused the HUD-1 settlement statements to be transmitted via mail and wire to banks and mortgage lenders, including FDIC regulated financial institutions, under the pretense that they reflected the economic truth of the underlying transaction.
In fact, however, the HUD-1 settlement statements prepared by TAGGART as a part of the scheme routinely contained false statements that were material to the lenders' funding decisions including, but not limited to: the existence and degree of the buyer's down payment, the actual contract price for the property, the rightful owner of the real estate specific to the transaction, and the true recipient of all loan proceeds disbursed by banks pursuant to the real estate closing.
The various banks and mortgage lenders who issued loans related to the mortgage fraud scheme were deceived by the use of straw buyers, in addition to the foregoing false and fraudulent statements made by JOHNSON, TAGGART, and other co-conspirators in connection with the loan closings. As a result of the scheme, lenders issued several million dollars in loans, a substantial portion of which are in default or foreclosure.
JOHNSON, BARNES, and TKAC each admitted their role in the scheme and are awaiting sentencing. TAGGART was previously sentenced on April 17, 2013, to 36 months in prison, followed by three years of supervised release for his role in the offense. JOHNSON, BARNES, and TKAC are scheduled to be sentenced in October of 2013 by Chief Judge Dever in Raleigh.
BOWE was indicted on April 4, 2013 for, among other things, Conspiracy to Commit Wire and Bank Fraud. The indictment alleges that BOWE, a former mortgage broker operating through New Equity Mortgage, LLC and Anna Mortgages, LLC, participated in the scheme by falsifying various aspects of loan applications including, but not limited to, the amount and source of income and assets of borrowers, the existing debts of borrowers, and borrowers’ intent to occupy the property being purchased as the borrower’s primary residence. It is also alleged that BOWE and another promoted the scheme by supplying false verifications of deposit and false account statements purporting to show that borrowers held assets with “Mutual Southern Investments”, when in fact Mutual Southern Investments did not exist, and the assets were entirely fictitious. BOWE’s arraignment is presently scheduled for Chief Judge Dever’s August 5, 2013 term of court.
DEIAC was indicted on April 4, 2013 for Making False Statements to a Federally Insured Financial Institution, and Making Material False Statements to the FBI. The indictment alleges that DEIAC forged her husband’s name and credit information without his knowledge on a $1,950,000 loan from Wells Fargo Bank for her purchase of 1016 Clear Creek Farm Drive in Raleigh. The indictment further alleges that DEIAC falsely told the FBI that she believed she was leasing a building in New York when she executed loan and closing documents for the Clear Creek Farm property. DEIAC is scheduled to be arraigned on the charges against her at Chief Judge Dever’s August 5, 2013 term of court in Raleigh.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent unless and until proven guilty in court.
The investigation of this matter is ongoing and anyone with knowledge is encouraged to contact IRS-CI at (910) 254-5150. If you believe that you are a victim on connection with this investigation please contact the Victim/Witness Coordinator for the United States Attorney’s Office at (919) 856-4003.
The United States Attorney’s Office also announces that former Raleigh developer JAMES THOMAS WEBB, 52, of Miami, is presently scheduled to be sentenced in August of 2013 by Chief United States District Judge James C. Dever in Raleigh. WEBB was indicted on charges of Conspiracy to Commit Bank and Wire Fraud, in violation of Title 18, United States Code, Section 1349; 10 counts of Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2; 3 counts of Wire Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1343 and 2; and 36 counts of Making False Statements to Influence Banks on Loans and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1014 and 2. On March 18, 2013, WEBB pleaded guilty to the offense of Conspiracy to Commit Wire and Bank Fraud, the maximum punishment for which is 30 years in prison and up to $1,000,000 in fines, or twice the gain or loss arising from the offense, whichever is greater.
WEBB’s case relates to the pending cases against former closing attorney AMY ROBINSON, 35, of Rolesville, former real estate appraiser, JACKIE GALE WEAVER, 55, of West Hamlin, West Virginia, and former national appraisal instructor, LARRY MAX MCDANIEL, 71, of Vienna, West Virginia, who have each pleaded guilty to their roles in the scheme. ROBINSON faces up to five years in prison and a $250,000 fine on the charge of Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371. WEAVER faces up to five years in prison and a $250,000 fine for Conspiring to Make False Statements on Loans in violation of Title 18, United States Code, Section 371. MCDANIEL faces up to 30 years in prison and $1 Million fine for Making False Statements on Loans and Aiding and Abetting, in violation of Title 18, United States Code, Section 1014 and 2.
WEBB’s indictment charges that between 2002 and 2006, WEBB operated various real estate companies, including Alpine Properties, LLC and Webb Builders, LLC for a profit. WEBB 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 caused investors to take out loans on properties that he and his companies had allegedly renovated.
The indictment further alleges that despite alleged philanthropic and humanitarian objectives, that 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. According to the indictment, WEBB conspired with former attorney, ROBINSON, to falsify closing statements associated with the loan transactions. It is alleged that the closing statements falsified various facts, including the amount of money paid to WEBB on the transactions. WEBB is also alleged to have conspired with a former appraiser and national appraisal instructor, MCDANIEL, and his associate, WEAVER, to falsify appraisal reports that were given to banks and lenders in connection with investor loans. The appraisal reports falsely stated that MCDANIEL had physically viewed the properties, when in fact he had not. The indictment also alleges that the properties sold to investors and financed by banks were not always completed or in the condition represented in the appraisal reports.
During the course of the scheme, the indictment charges that WEBB lived lavishly, residing in a multi-million dollar mansion, driving expensive vehicles including a Bentley, traveling extensively, and otherwise paying himself handsomely. WEBB is alleged to have abruptly left North Carolina for Florida in 2004, where he continued to market his services under new company names.
According to the indictment, based upon WEBB’s statements and representations to investors, various individuals collectively invested millions of dollars with WEBB and his companies. Additionally, banks and lenders are alleged to have disbursed millions of dollars in loans, leaving investors holding millions in debt. The indictment alleges that WEBB left various neighborhoods in North Carolina and Virginia blighted with boarded up and dilapidated homes, many of which were ultimately demolished as uninhabitable.
MCDANIEL, 71, pleaded guilty in federal court on June 11, 2012, to Making False Statements to Federally Insured Financial Institutions, and Aiding and Abetting. WEAVER pleaded guilty in federal court on September 21, 2011, to Conspiracy to Make False Statements to Federally Insured Financial Institutions. ROBINSON, 35, pleaded guilty in federal court on May 3, 2010, to conspiracy to commit mail, wire, and bank fraud. Sentencing in the cases of MCDANIEL, WEAVER, and ROBINSON, is presently scheduled at the same time as WEBB’s sentencing during Chief Judge Dever’s August 2013 term of court.
The investigation of this matter is ongoing and anyone with knowledge is encouraged to contact the FBI at (704) 672-6100. If you believe that you are a victim on connection with this investigation please contact the Victim/Witness Coordinator for the United States Attorney’s Office at (919) 856-4003.
The United States Attorney also announces the upcoming sentencings in August of 2013 for the pending cases against developer JUSTIN LEE ROOKS, 31, of Loris, South Carolina; developer MICHAEL THOMAS BARTLETT, 46, of Myrtle Beach, South Carolina; closing attorney ROBERT HAROLD MELVILLE, JR., 50, of Lake Waccamaw; and ANTHONY MICHAEL TEW, 31, of Conway, South Carolina. On December 11, 2012, ROOKS and BARTLETT pled guilty to Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 1349. MELVILLE pled guilty to Conspiracy to Commit Bank and Wire Fraud, in violation of Title 18, United States Code, Section 1349. The charges against MELVILLE, ROOKS, and BARTLETT carry maximum penalties of 30 years in prison and up to $1 Million in fines or twice the gain or loss from the conspiracy, whichever is greater. On February 12, 2013, TEW pled guilty to Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371, which carries a maximum term of imprisonment of 5 years and up to $250,000 in fines.
The charging documents in these cases collectively allege that between May of 2004 and August of 2008, ROOKS, BARTLETT, and others conspired to defraud banks and lenders in connection with the purchase, development, and resale of properties in Columbus, Brunswick, and New Hanover counties. It is further alleged that the conspirators solicited individuals at seminars in Raleigh and elsewhere to allow construction loans to be obtained in their names for the benefit of the conspirators in exchange for cash. The conspirators told the buyers that the buyers would not have to make a down payment or interest payments on the loans, and that the properties purchased in their names would be sold within twelve months. TEW and other conspirators also posted signs which included such representations as, “easy financing” and “no down payment required,” even though the buyer/borrowers were generally required to make down payments at the time of the closings. The buyers were told that if properties could not be sold in twelve months, the conspirators would buy the properties back.
The conspirators in fact enticed the buyers to participate in the transactions and engaged in various actions to make it appear to the banks and lenders that the buyers were qualified for the loans. The charges allege that TEW and other conspirators deposited money into the bank accounts of the buyers to make it appear that they had sufficient assets to conduct the transactions. To close the loans, the conspirators also referred the buyers to MELVILLE, who was at that time a North Carolina attorney who practiced real estate law. MELVILLE participated in the conspiracy by engaging in actions that made it appear to the banks and lenders that the buyers had given down payment money at the time of closing when, in fact, the buyers did not bring such money.
The banks and lenders who loaned funds to the buyers were not informed of the cash kickbacks to the buyers by the conspirators. The banks and lenders were also not informed that the buyers did not in fact have the cash to close the transactions, and that the down payment money, if any, was provided by the conspirators.
Ultimately, according to the charging documents, the conspirators were unable to sell many of the properties purchased in the names of the buyers. The buyers did not have the means to repay all of the loans obtained in the names of the buyers and, as a result, many of the loans went into default. The banks and lenders were forced to sell the properties at a substantial loss.
The investigation of this matter is ongoing and anyone with knowledge is encouraged to contact IRS Criminal Investigation at (910) 254-5143. If you believe that you are a victim on connection with this investigation please contact the Victim/Witness Coordinator for the United States Attorney’s Office at (919) 856-4003.
Durham Men Plead Guilty to Federal Firearm FeloniesRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today JASON LEMAR MEDLYN, 31, of Durham, North Carolina and IRESHIA DONTE SUMMERS aka ERIC SUMMERS, 35, also of Durham, North Carolina pled guilty before United States Magistrate Judge Robert B. Jones, Jr. to several firearms related charges.
MEDLYN and SUMMERS bothpled guilty to one count each of Conspiracy, in violation of Title 18, United States Code, section 371; Possession of Firearms in a School Zone and aiding and abetting, in violation of Title 18, United States Code, sections 922(q)(2)(A) and 924 and 2; and 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 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 a Granville County Sheriff’s Deputy responding to a call regarding a residential break in. Two males, later identified as MEDLYN and SUMMERS, jumped into a vehicle and sped away. The passenger in the fleeing vehicle fired shots at the pursuing deputy. A North Carolina State Highway Patrolman picked up the chase and the passenger also fired shots at the trooper.
During the chase the car hit mailboxes and stopped near an auto dealership and a garage. Three guns were found near the vehicle along with a stolen television, nooks, and jewelry. The defendants traveled through two school zones with firearms during the chase.
MEDLYN and SUMMERS face a maximum sentence of 240 months imprisonment along with three years of supervised release at sentencing. They are expected to be sentenced during the October 8, 2013 term of court by Senior United States District Judge Malcolm J. Howard.
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, North Carolina Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney S. Katherine Burnette prosecuted the case.
Armed Career Criminal Sentenced to 180 Months for Weapons and Drugs ChargesRead the Press Release
WILIMINGTON - United States Attorney Thomas G. Walker announced that in federal court on July 2, 2013 JOHN ALBRITTON, 64, of Chocowinity,, North Carolina, was sentenced by Senior United States District Judge James C. Fox to 180 months imprisonment and five years of supervised release for one count of Possession of Firearms and Ammunition by a Felon, in violation of Title 18, United States Code, Sections 922(g)(1) and 924 and two counts of Distributing a Quantity of Cocaine Base (Crack), in violation of Title 21, United States Code, Section 841(a)(1). In addition, the Court Ordered the Forfeiture of three shotguns and ammunition and one rifle.
On March 8, 2013 ALBRITTON was found guilty, following a three day trial in Wilmington, North Carolina of distributing a quantify of cocaine base (crack) on June 2, 2010 and May 25, 2010 and of possessing four firearms and ammunition on June 4, 2010.
After a joint investigation conducted by the Beaufort County Sheriff’s Office (BCSO) in Washington, North Carolina and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Wilmington, North Carolina, law enforcement established that ALBRITTON operated an illicit business, Lil’ John’s Club, from a building adjacent to his residence. At the club, patrons purchased alcohol and drugs from ALBRITTON, activity which dated from early 2008 and included numerous citizen complaints to BCSO for noise ordinance violations and assaults.
Assistant United States Attorney Thomas B. Murphy prosecuted the case.
Brunswick County Man Sentenced for Crack DistributionRead the Press Release
Raleigh - United States Attorney Thomas G. Walker announced that in federal court on June 21, 2013 Chief United States District Judge James C. Dever III, sentenced KEVIN BROWN, 33, of Brunswick County, North Carolina, to 92 months imprisonment followed by 4 years supervised release.
On January 22, 2013, BROWN pled guilty to conspiring to possess with the intent to distribute and distributing more than 28 grams of cocaine base (crack).
The Brunswick County Sheriff’s Office with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives made seven controlled purchases of cocaine base (crack) between October 2011 and January 2012 from BROWN in Brunswick County.
This case was brought as a part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation entitled Buggsnatcher, investigating importers and multi-level distributors of cocaine and crack cocaine. So far 20 persons have been sentenced in federal court as a part of this OCDETF.
Investigation of this OCDETF case is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the North Carolina State Bureau of Investigation; the Wilmington Police Department; the New Hanover County Sheriff’s Office and the Brunswick County Sheriff’s Office. Special Assistant United States Attorney Timothy Severo represents the government.
Mr. Severo is a prosecutor with the New Hanover County District Attorney’s Office. District Attorney Ben David has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.
Franklin County Dance Instructor Sentenced to 274 Months and Lifetime Supervised Release in Child Pornography CaseRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today BRUCE ARTHUR HOWARD, 55, was sentenced by Federal District Court Judge Louise W. Flanagan to 274 months imprisonment and lifetime supervised release for receipt of child pornography. HOWARD had been convicted of Taking Indecent Liberties With A Child in Forsyth County in a separate case in 1987. Prior to his arrest, HOWARD had been employed as a dance instructor in multiple studios, including studios in Zebulon, Wilson, and Knightdale.
The North Carolina State Bureau of Investigation developed a lead in August of 2011 that an individual in Louisburg, North Carolina was sharing child pornography over the Internet. The crime was traced to the defendant’s residence, where detectives executed a search warrant in October 2011 and found numerous images and videos of child pornography. Subsequent forensic examination demonstrated that HOWARD’s collection included images depicting the sexual abuse of prepubescent children and the sadistic abuse of children. The investigation further revealed that the defendant had induced a child to create and send pornographic images of the child to the defendant, and had engaged the child in a discussion about engaging in sex acts. Notwithstanding his prior sex offense, HOWARD was not required to register as a sex offender.
“This case is an excellent illustration of the strong connection between child pornography crimes and the sexual abuse of children,” said U.S. Attorney Thomas G. Walker. “Child pornography crimes represent a grave danger, both direct and indirect, to the children in our community. We will continue to make a priority of combating crimes that exploit and abuse children.”
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 North Carolina State Bureau of Investigation with the assistance of the Franklin County Sheriff’s Office. Prosecution was coordinated with the Franklin County District Attorney’s Office. Assistant United States Attorney Jay Exum prosecuted the case for the United States.
New Bern Drug Dealer Sentenced to 9 Years in Federal PrisonRead the Press Release
RALEIGH – United States Attorney Thomas Walker and District Attorney Scott Thomas announced that today in federal court today, Chief United States District Judge James C. Dever III sentenced Walter Terion Brown , 25, of New Bern, NC to 108 months imprisonment, followed by 4 years of supervised release. BROWN was also ordered to pay $2,160 in restitution to the New Bern Police Department and Carteret County Sheriff’s Office.
BROWN was named in an Indictment filed on September 25, 2012 charging him with possessing with intent to distribute 28 grams or more of cocaine base (crack). On January 22, 2013, BROWN pled guilty to that charge.
As part of a separate investigation, a New Bern Police Department detective, acting undercover, purchased cocaine base (crack) from Tinnius Remone Bell on May 26, 2011. Investigation revealed that Bell obtained the crack he sold to the undercover officer from WALTER TERION BROWN. Officers from the Coastal Narcotics Enforcement Team then utilized a confidential informant to purchase cocaine base (crack) directly from BROWN on four additional occasions in 2011. In total, BROWN was held responsible for possessing with the intent to distribute and distributing over 441 grams of cocaine base (crack). Tinnius Remone Bell was sentenced on November 2, 2012 to 72 months imprisonment, followed by 5 years of supervised release for his role in the distribution of cocaine and cocaine base (crack) in the New Bern area.
Investigation of this case was furthered by the Coastal Narcotics Enforcement Team, a multi-agency task force comprised of agents from the Carteret County Sheriff’s Office, Craven County Sheriff’s Office, Havelock Police Department, Jones County Sheriff’s Office, New Bern Police Department, Pamlico County Sheriff’s Office, River Bend Police Department, State Bureau of Investigation and Trent Woods Police Department. Special Assistant United States Attorney Augustus Willis represented the government in these matters. Mr. Willis is a prosecutor with the District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties. District Attorney Scott Thomas has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Wills’ position is funded through a grant provided by the Governor’s Crime Commission.
Man Pleads Guilty to Stealing FirearmsRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today that WILLIAM DAVID DEVANE 30, of Maryland (formerly of Fayetteville, North Carolina) pled guilty before United States District Judge Louise W. Flanagan to Theft of firearms from a Federal Firearms Licensee in violation of Title 18, United States Code, Sections 922(u) and 924 and Possession of stolen firearms in violation of Title 18, United States Code, Sections 922(j) and 924.
According to the investigation, DEVANE broke into the Guns Plus business located in Spring Lake, North Carolina and stole 15 firearms in addition to ammunition, magazines, and scopes. Officers responded to the scene and found DEVANE lying on top of a moving van parked near the gun store and the stolen firearms were located nearby.
DEVANE faces a maximum sentence of 20 years imprisonment along with a total of 3 years of supervised release at his sentencing scheduled for October 2, 2013 in New Bern.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Cumberland County Sheriff’s Office, and the Spring Lake Police Department. Assistant United States Attorney S. Katherine Burnette prosecuted the case.
Wilmington Man Sentenced for Armed Robbery – Victor McClainRead the Press Release
RALEIGH- United States Attorney Thomas G. Walker announced that in federal court yesterday VICTOR MCCLAIN, 61, was sentenced by Chief United States District Chief Judge James C. Dever to 235 months imprisonment, 5 years supervised release, and was ordered to pay a $200.00 special assessment. MCCLAIN was sentenced pursuant to the Armed Career Criminal Act.
On January 9, 2013, MCCLAIN pled guilty to Robbery of a Business Engaged in Interstate Commerce and Possession of a Firearm by a Felon for an offense that occurred on December 7, 2011.
On December 7, 2011, MCCLAIN and his co-defendant, Aaron Monroe robbed the Game Giant in Wilmington, North Carolina. After pretending to shop for various items, the men brandished firearms and stole money from the store and three individuals present in the store. After stealing the money, MCCLAIN and his co-defendant barricaded the three victims into the bathroom to facilitate their escape. One of the men managed to free himself from the bathroom and ran out of the store where an officer with the Wilmington Police Department was nearby. The victim yelled to the officer that a robbery had taken place and pointed out the defendants who were leaving in a car.
Officers with the Wilmington Police Department attempted to stop the vehicle in which the defendants were traveling, however, the defendants refused to stop. During the chase, MCCLAIN threw the handguns used in the course of the robbery out of the window. When the defendants came to a stop, MCCLAIN attempted to flee the area on foot, however, he was apprehended very quickly.
Investigation of this case was conducted by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Special Assistant United States Attorney Charity Wilson is serving 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.
Maxton Man Sentenced to 480 Months for Drug TraffickingRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday, Senior United States District Judge James C. Fox sentenced JAMES WILLIAM PAUL SANDERSON, 35, of Maxton, North Carolina, to 480 months imprisonment followed by 5 years supervised release.
On September 20, 2011, SANDERSON pled guilty to the distribution of 50 grams or more of cocaine base (crack) and a quantity of dihydrocodeinone (Percocet) in violation of Title 21, United States Code, Section 841(a)(1).
The evidence presented during SANDERSON’S sentencing hearing revealed that he was a significant trafficker who was responsible for the distribution of multiple kilograms of crack and powder cocaine. The evidence also established that SANDERSON frequently used and possessed firearms during his drug activities.
This case is part of an Organized Crime Drug Enforcement Task Force investigation and was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives, the North Carolina State Bureau of Investigation, and the Robeson County Sheriff’s Office.
Wilmington Collector of Child Pornography Sentenced to 151 Months ImprisonmentRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today LONNE BALOG, 43, was sentenced by Chief Federal District Court Judge James C. Dever to 151 months imprisonment and 20 years of supervised release for receipt of child pornography.
During the course of an investigation of online trafficking in child pornography, law enforcement identified BALOG as an individual using peer-to-peer technologies to obtain child pornography and to make such materials available to others. After an undercover investigator downloaded child pornography images from BALOG’s computer, a search warrant was executed at his Wilmington home in June of 2012 by the New Hanover County Sheriff’s Office, the North Carolina State Bureau of Investigation, and the FBI. BALOG admitted to frequent downloading of child pornography, and forensic examiners determined that BALOG had accumulated over 4,000 still images and over 600 videos depicting the sexual abuse of children.
United States Attorney Thomas Walker stated, “This case is a good example that prosecutors and investigators at every level successfully work together to make the Eastern District of North Carolina a safer place for our children.”
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 New Hanover County Sheriff’s Office, the North Carolina State Bureau of Investigation, and the FBI. Prosecution was coordinated with the New Hanover County District Attorney’s Office. Assistant United States Attorney Jay Exum prosecuted the case for the United States.
Burgaw Man Sentenced for Receipt of Child PornographyRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today, PAUL JOSEPH SCHMURA, JR., 49, of Burgaw, North Carolina, was sentenced by Senior United States District Court Judge James C. Fox to 121 months imprisonment followed by a lifetime of supervised release.
On February 19, 2013, SCHMURA pled guilty to one count of receipt of child pornography in violation of Title 18, United States Code, Section 2252(a)(2).
In February 2012, an undercover agent with the North Carolina State Bureau of Investigation initiated an online investigation related to the distribution of child pornography. The undercover agent identified a computer sharing known Child Pornography and captured the Internet Protocol (IP) address of the host computer. The IP address allowed law enforcement to identify a specific computer which led to the identification of SCHMURA. A search of SCHMURA’S residence on February 27, 2012 led to the seizure of several computers, external hard drives, and media storage devices containing at least 14,678 images of child pornography.
This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national initiative, go to www.projectsafechildhood.gov.
Investigation of this case was conducted by the Federal Bureau of Investigation and the North Carolina State Bureau of Investigation. Assistant United States Attorney Ethan A. Ontjes prosecuted this case for the United States.
Six Methamphetamine Traffickers 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 ISMAEL PARRILLA, 32, of Long Beach, California, to 180 months of imprisonment; LUIS GUTIERREZ RODRIGUEZ, 40, of Houston, Texas, to 162 months of imprisonment; HUMBERTO GARCIA, 26, San Pedro, California, to 100 months of imprisonment; GUILLERMO VILLARREAL SICAIROS, 30, of Culican, Mexico, to 156 months imprisonment; KATHERINE LASSWELL, 31, of Phoenix, Arizona, to 84 months imprisonment; and ELIZABETH VILLANUEVA, 44, of Tempe, Arizona, to 72 months imprisonment. Each defendant will be under 5 years of supervised release upon their release from the Bureau of Prisons. PARRILLA, RODRIGUEZ, GARCIA, and SICAIROS previously hadpled guilty to conspiracy to distribute and possess with the intent to distribute 500 grams or more of a substance or mixture containing a detectible amount of methamphetamine. LASSWELL and VILLANUEVA previously had pled guilty to possession with the intent to distribute 500 grams or more of a substance or mixture containing a detectible amount of methamphetamine and aiding and abetting.
PARRILLA, RODRIGUEZ, and GARCIA facilitated the delivery of 4.1 kilograms of methamphetamine to Greenville, North Carolina. The methamphetamine was delivered to Greenville from California on June 22, 2012, by codefendant Christina Capers whose sentencing hearing is pending. Law enforcement officers intercepted the car driven by Capers and found the methamphetamine stashed in a hidden compartment in the rear door of the car.
SICAIROS facilitated two deliveries of methamphetamine to eastern North Carolina from Mexico. On April 1, 2012, law enforcement officers intercepted a car in Greenville that had 5.4 kilograms of methamphetamine hidden in the front bumper. On May 4, 2012, SICAIROS, LASSWELL, and VILLANUEVA were arrested in Kinston, North Carolina, after law enforcement officers found 1.9 kilograms of methamphetamine hidden in a clothes dryer in the SUV driven by VILLANUEVA and occupied by LASSWELL.
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. In addition, $2.2 million in U.S. Currency, 127 kilograms of cocaine with a street value of $3.8 million dollars, 41 pounds of crystal methamphetamine with a street value of $650,000, 160 pounds of marijuana with a street value of $170,000, 32 grams of heroin, 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 Investigation Division; 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 Craven, Carteret 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.
Former North Carolina House of Representative Convicted for Theft from A Non-Profit and Money LaunderingRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced today that, STEPHEN A. LAROQUE, of Kinston, North Carolina, was convicted by a federal jury on all 12 counts involving theft from a Non-Profit receiving federal funds, money laundering, false statements to cover up a scheme, and filing false tax returns.
Walker stated, “We always thought that this case was about stealing, pure and simple. The jury has now agreed.”
Special Agent in Charge Jeannine A. Hammett, Internal Revenue Service Criminal Investigation stated, "Mr. Laroque improperly used money belonging to a non-profit organization and he illegally concealed his actions.”
Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation, the United States Department of Agriculture, Office of Inspector General-Investigations, Raleigh Office, the Federal Bureau of Investigation and the North Carolina State Bureau of Investigation. Assistant United States Attorney, Dennis M. Duffy prosecuted the case.