Eastern District of North Carolina

RALEIGH - The Justice Department and the United States Attorney for the Eastern District of North Carolina announced today a settlement with the Warren County, North Carolina, Board of Education that resolves a lawsuit the Department filed on behalf of North Carolina Army Reserve soldier Dwayne Coffer under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).
The settlement, which was filed as a Consent Agreement in the U.S. District Court for the Eastern District of North Carolina, resolves allegations that the Warren County Board of Education willfully violated USERRA by not renewing Coffer’s employment contract in 2008 because of his military service obligations.  Coffer, a Sergeant First Class in the United States Army Reserve, worked at Warren County High School as an Assistant Principal.  During his employment with the County, Coffer took periodic leave from work to fulfill his military obligations.  According to the Justice Department’s complaint, the Board did not renew Coffer’s contract as an Assistant Principal in 2008 because staff members expressed frustration at accommodating his military service during the school year.
USERRA prohibits employers from discriminating against service members with respect to employment opportunities based on their past, current or future uniformed service obligations.  USERRA also requires employers to promptly reemploy service members following their return from military leave.  Under the terms of the Consent Agreement, the Warren County Board of Education will, among other things, reemploy Coffer under a two-year contract as a Lead Teacher/Site Supervisor at the salary he would have received had he remained continuously employed by the County, pay back-pay to Coffer in the amount of $10,000, and contribute lost retirement payments to Coffer’s retirement account in the amount of $13,702.63.
“USERRA affords military members who leave their civilian careers behind for significant periods of time to serve our country certain protections against unjust terminations,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division.  “It is important that veterans have the opportunity to serve their country free from worry about termination without cause.”

United States Attorney Thomas G. Walker stated, “I am pleased we were able to resolve this matter.  Improper job terminations over military service cannot be tolerated.” 
The Justice Department initiated the lawsuit after Coffer filed a complaint with the Labor Department’s Veterans’ Employment and Training Service, which investigated the matter and determined that the complaint had merit.  This case was handled by the Employment Litigation Section of the Civil Rights Division and the United States Attorney’s Office for the Eastern District of North Carolina.

RALEIGH - United States Attorney Thomas G. Walker announced that TREVIN MAURICE GIBSON of Greenville, MICHAEL RONDALE GIBSON of Greenville, PRENTISE JAVAUGHN WILKINS of Williamston and DESHAUN ENTREA SPRUILL of Robersonville each pled guilty to firearms charges resulting from a string of robberies of fast food restaurants in and around Greenville from September 2011 through January 2012.  The robberies involved outlets of Bojangles, KFC, Subway, Burger King, McDonalds and Popeyes.
Each defendant entered a plea before Chief U.S. District Judge James C. Dever, III to two counts of using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A).  SPRUILL entered his plea on Friday, November 1, 2013, and TREVIN GIBSON, MICHAEL GIBSON and WILKINS entered their pleas on Monday, November 4, 2013.  Each defendant faces a mandatory minimum sentence of thirty years without parole, and could be sentenced to up to life in prison.  Each defendant will be sentenced the week of February 10, 2014.  Another defendant, Marcus Roshawn Garrett, entered a guilty plea earlier and is pending sentencing next month.
     This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever, III, has sentenced PATRICK REX LOVETT, 48, of Tabor City, North Carolinato 5 years probations with 9 months of house arrest.  The Court also imposed a fine of $10,000 and ordered forfeiture in the amount of $160,696.
On February 19, 2013, LOVETT pled to structuring transactions to evade reporting requirements, in violation of Title 31, United States Code, Sections, 5324(a)(3) and (d)(2). 
According to the Criminal Information filed on November 26, 2012, and information presented in open court, LOVETT structured 22 currency transactions totaling $160,696.00 with one or more domestic financial institutions for the purpose of evading the legal obligation to report currency transactions in excess of $10,000.   Six of the structured transactions, totaling $49,118, related to the sale of hidden tobacco.  Those sales were not reported to the United States Department of Agriculture and LOVETT did not report the income on his tax returns until he amended the tax returns pursuant to his plea agreement.
This case is part of the ongoing investigation of the multi-million dollar crop insurance fraud in Columbus County.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III, sentenced HARRY DEAN CANADY, 63, of Lumberton, North Carolinato a total of 72 months imprisonment followed by 5 years supervised release.  The Court also ordered CANADY to pay restitution in the amount of $1,036,516.      
On December 19, 2012, CANADY pled guilty to the following offenses: conspiracy to make false statements, to make material false statements, and to commit mail and wire fraud; false statements to the Federal Crop Insurance Corporation; aggravated identity theft; felon in unlawful possession of a firearm; and retaliation against a federal official in violation of Title 18, United States Code, Section 115.
U.S. Attorney Walker stated, “This investigation exemplifies how our nation’s law enforcement officers place their lives at risk in the investigations of crimes, even white collar offenses.  Such intimidation tactics will not be tolerated in the pursuit of justice for the American people and the protection of public funds.”
“USDA-OIG-Investigations remains committed to working with the U.S. Attorney’s Office and our law enforcement partners to bring those to justice who willfully violate the law, threaten our agents, and facilitate fraud against USDA programs.  Threatening federal agents is a serious offense.  USDA-OIG will always take action to protect its law enforcement agents from such threats”, said Karen Citizen-Wilcox, Special Agent-in-Charge.
"It is very rewarding to see these people sentenced after such a complex and exhausting investigation by our special agents and our law enforcement partners," said Special Agent in Charge, Jeannine A. Hammett, IRS Criminal Investigation.  
 According to the Indictment returned by a federal grand jury on June 13, 2012, court filings, and information presented in open court, CANADY owned and rented farmland in Robeson County, North Carolina, and produced, among other crops, tobacco, corn, wheat, and soybeans.  From August 2006 through December 2009, CANADY conspired with others to commit fraud upon the federal crop insurance program.  It was the purpose of the conspiracy to profit through the filing of false, fictitious, and fraudulent federal crop insurance claims, the sale of unreported tobacco and other grains, and to hide the criminal proceeds through payments and sales in nominee names.
Specifically, CANADY worked with a co-conspiring insurance agent, warehousemen, brokers, and adjusters to make false crop insurance claims, and to hide some or all of his crop production by selling it in nominee names or the names of family members, or for cash to co-conspiring warehousemen.
The investigation revealed that CANADY profited under the scheme because he was paid twice for each pound or bushel of his crop: once through the false crop insurance claim, and also through the sale of the “hidden” tobacco or “hidden” grain.  CANADY and other co-conspirators misrepresented the truth of farm operations in a variety of documents, including applications, reports of actual production history, acreage reports, and claim forms made and submitted in support of crop insurance coverage and claims that failed to truthfully show who had an insurable interest and who really suffered a loss and the extent of that loss which were submitted to the Risk Management Agency, an agency of the United States Department of Agriculture, and private entities.
     For example, law enforcement determined that CANADY, without authorization, used the name of his grandchildren, to hide some of his soybean production.  Specifically, on January 21, 2008, CANADY declared that he only produced, harvested, and sold 7,192 bushels of soybeans, when in fact, he sold an additional 2,261 bushels of soybeans in the name of his grandchildren.  By failing to disclose the sales in his grandchildren’s name, CANADY was paid $99,537 on a false claim.
     The investigation further revealed that CANADY took the criminal proceeds obtained through other acts of aggravated identity theft and federal crop insurance fraud, and engaged in various financial transactions with those funds, including causing his daughter to deposit an $84,655.97 check into a financial institution and to transfer the funds to an account controlled by him.  These funds were derived from the unreported sale of 23,730 bushels of corn in the name of a grandchild.
     In an effort to increase the amount of money he could defraud from the federal crop insurance program, CANADY created and used a new corporation, MC FARMS CO., INC.  CANADY caused another person to submit false documents to the Farm Service Agency, and the federal crop insurance program under that corporation name.
     During the course of the investigation, law enforcement received information that CANADY unlawfully possessed firearms.  During the execution of a November 22, 2010, search warrant, officers recovered 6 firearms and over 180 rounds of ammunition.  CANADY had been previously convicted of involuntary manslaughter, a crime punishable by a term of imprisonment exceeding one year. 
     CANADY, who was aware of the federal investigation since at least 2008, made several threats against law enforcement.  Most recently, on January 23, 2012, CANADY threatened to assault and murder a USDA-OIG Special Agent with the intent to retaliate against such law enforcement officer. 
     As a result of the offense conduct, CANADY fraudulently obtained a total of $1,036,516 worth of federal crop insurance indemnity payments.
     The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General - Investigations; United States Department of Agriculture - Risk Management Agency – Special Investigations Branch; and the United States Internal Revenue Service – Criminal Investigations.  Assistant United States Attorney Banumathi Rangarajan handled the prosecution on behalf of the Eastern District of North Carolina.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever, III, has sentenced WILLIAM L. WHALEY, JR., 50, of Kinston, North Carolinato 12 months and 1 day of imprisonment followed by 3 years supervised release.  The Court did not impose a fine in recognition of the $50,000 monetary penalty previously paid by the defendant.
On February 27, 2013, a Criminal Information was filed charging WHALEY with making false statements in connection with a commodity credit corporation loan, in violation of Title, 15, United States Code, Section 714m.  On April 9, 2013, he pled guilty to the charge.
According to the investigation, WHALEY, the controlling partner of Whaley Partners, a large farming operation, entered into a commodity loan agreement with the United States Department of Agriculture for $272,986.56 using bushels of soybeans as collateral.  During the loan process, an agency employee went to WHALEY’s farm to verify the quantity and quality of the beans.  In preparation for the visit, WHALEY had a farm hand suspend a bucket of soybeans just below the opening at the top of the grain bin to give the illusion that the grain bin was in fact filled with 54,000 plus bushels of soybeans.  In reality, the bin was empty and the collateral never existed.  WHALEY then submitted false lien waivers in connection with his loan application.  The Farm Service Agency discovered the fraud  in May 2009.
The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General – Investigations.  The Farm Service Agency provided valuable assistance in the investigation.  Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.

RALEIGH - United States Attorney Thomas G. Walker announced that five individuals involved in a drug conspiracy ring in Eastern North Carolina have been sentenced in federal court by United States District Judge Terrence W. Boyle.  Additionally, procedures to seize a house in Kinston, North Carolina used by drug distributors and users have been initiated to rid the community of that blight. 
According to the investigation, a boarding house located at 302 East Caswell Street in Kinston was a known crack house.  Information was obtained that multiple individuals were selling crack from this location and there were guns at the location as well.  Between August 2011 and April 2012, law enforcement officers conducted an operation wherein four different individuals bought crack cocaine from five different individuals a total of eight times.  Additionally, one individual was arrested on a weapons charge. 
The defendants received the following sentences:    ERIC DION LATHAM, 36, of Brentwood, New York was sentenced to 300 months imprisonment followed by 5 years supervised release.  LATHAM, was sentenced for conspiracy to distribute a quantity of cocaine base (Crack), distribution of a quantity of cocaine base (Crack) and aiding and abetting the same, and using and carrying a firearm during and in relation to a drug trafficking crime and aiding and abetting the same, and with felon in possession of a firearm.  JAMES HENRY STRONG, 31, of Grifton, North Carolina was sentenced to 48 months imprisonment followed by 3 years of supervised release.  JAMES HENRY STRONG was sentenced for distribution of a quantity of cocaine base (Crack) and aiding and abetting the same, and  distribution of a quantity of cocaine base (Crack) and aiding and abetting the same.  JEREMY TYRONE STRONG, 34, of Grifton, North Carolina was sentenced to 21 months imprisonment followed by 3 years of supervised release.  JEREMY TYRONE STRONG, was sentenced for distribution of a quantity of cocaine base (Crack) and aiding and abetting the same.  MICHAEL ALPHONSO POLLARD, 36, of Hookerton, North Carolina was sentenced to 48 months imprisonment followed by 3 years of supervised release.  POLLARD   was sentenced for two counts of distribution of a quantity of cocaine base (Crack).  UNTEZ DEVON LLOYD, 22, of Kinston, North Carolina was sentenced to 15 months imprisonment followed by 3 years of supervised release.  LLOYD was sentenced for distribution of a quantity of cocaine base (Crack) and distribution of a quantity of cocaine base (Crack).  JAMES THOMAS STRONG, 62, of Grifton, North Carolina was sentenced to 37 months imprisonment followed by 3 years of supervised release.  STRONG was sentenced for possession of an unregistered firearm. 
In conjunction with the criminal matter, the government filed a civil action seeking the forfeiture of a house at 302 East Caswell Street in Kinston.  The civil complaint filed on September 26, 2013 alleges that multiple sales of illegal controlled substances were made from the house.  The civil action remains pending.

RALEIGH - United States Attorney Thomas G. Walker announced that on October 18, 2013, a federal grand jury in Raleigh, North Carolina returned a two count indictment charging JAMES ALAN ROWAN with securities fraud and wire fraud.
ROWAN is a Canadian citizen who served as President and Chairman of Enviro-Energies, a Delaware-registered corporation, headquartered in Canada.  As detailed in the Indictment, ROWAN claimed to have developed and patented a new type of turbine to generate clean electricity for homes and small commercial establishments.  He told potential investors, distributors, and customers in the United States that he developed and patented a new type of wind turbine that did not require a tower to support the turbine assembly.  ROWAN referred to his line of wind turbine models as “Mag Wind Turbines.”
Through aggressive marketing efforts over the Internet and in person, ROWAN received endorsements for the Mag-Wind Turbine design concept from unwitting Hollywood celebrities and environmental activists.  Additionally, the Grand Jury alleges that ROWAN made numerous false and deceptive claims to his U.S. based distributors and customers about the Mag-Wind Turbine by exaggerating its power generation capacity, falsifying scientific and technical data, and falsifying information regarding his capacity to manufacture and distribute the Mag-Wind turbines.  The Grand Jury also alleges that ROWAN inveigled U.S. investors in North Carolina, California, and elsewhere into purchasing Enviro-Energies shares by falsely telling them that these shares would be listed on the stock exchanges through an Initial Public Offering (IPO).  Even though some investors responded to ROWAN’S false claims, once they paid for their shares, ROWAN never delivered the actual share certificates.    

If convicted, the maximum penalties for the charged counts are twenty years in prison for securities fraud and twenty years in prison for wire fraud.  The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.  The case is being investigated by the Federal Bureau of Investigation (FBI) and is being prosecuted by Assistant United States Evan Rikhye.

RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced AARON MONROE , 41, of Wilmington to 324 months imprisonment, followed by 5 years of supervised release.
Aaron monroe was named in an Indictment filed on April 24, 2012 charging him with Robbery of a Business Engaged in Interstate  Commerce, Using and Carrying a Firearm During and in Relation to a Crime of Violence and Felon in Possession of a Firearm.  On October 1, 2012, monroe pled guilty to those charges. 
According to the investigation, on December 7, 2011,  MONROE along with his father, Victor McClain, armed with a firearm and a BB gun, entered Game Giant, located in Wilmington, North Carolina.  Upon entry into the store, MONROE and McClain pretended to be customers until the store clerk appeared to be alone.  MONROE and McClain produced firearms and demanded money.  Unbeknownst to MONROE, there were still two customers in the store who also were robbed of their money.  After getting money from the cash register, MONROE and McClain forced the victims into a bathroom and barricaded the door with a shelf.  Once the victims heard the door chime, that indicated the robbers had left the store, they forced the door opened and escaped.  The store clerk ran outside and saw an officer with the Wilmington Police Department and pointed out the robbers who were leaving in a car.  The Wilmington Police Department attempted to stop the car.  MONROE was driving the car and refused to stop for law enforcement.  MONROE recklessly endangered the Wilmington citizenry by speeding throughout the city, running stop signs, weaving into oncoming traffic and driving recklessly through parking lots of businesses and schools.  After striking a fence pole in a vacant lot, the high speed chase ended and MONROE and McClain were taken into custody. MONROE confessed to his participation in the robbery of Game Giant.

RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced William Jenkins , 25, of Wilmington to 137 months imprisonment, followed by 3 years of supervised release.

jenkins was named in an Indictment filed on April 24, 2012 charging him with Possession of a Firearm by a Felon and Theft of Firearms from a Federal Firearms Licensee.  On July 2, 2013, jenkins pled guilty to those charges.

According to the investigation, on October 26, 2011, William JENKINS and Joshua Zack traveled to Rocky Point Guns and Ammo in Rocky Point, North Carolina and broke into a locked trailer behind the store. They stole 27 firearms from that businesses.  JENKINS and Zack then took the firearms to JENKINS’ residence in Wilmington where they hid the firearms in JENKINS’ back yard.  JENKINS and Zack were caught on November 2, 2011 when they went back to the same store in an apparent attempt to break in again.  Officers with the Pender County Sheriff’s Office were patrolling the area more heavily after the first break in and caught JENKINS and Zack as they were parked by the store about to break in a second time.  Several of the guns have been recovered in various investigations by the Wilmington Police Department.

Investigation of this case was conducted by the Pender County Sheriff’s Office, the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Special Assistant United States Attorney Charity Wilson represented the government.  Ms. Wilson is a prosecutor with the District 5 District Attorney’s Office encompassing New Hanover and Pender Counties.  District Attorney Ben David has assigned her to the United States Attorney’s Office to prosecute federal crimes of violence and firearm related crimes.

NEW BERN – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Louise W. Flanagan sentenced susan marie lee , age 58, of Raleigh, North Carolina, to 36 months imprisonment and ordered her to pay $496,854.64 in restitution to the Internal Revenue Service.  LEE was immediately taken into custody after the sentencing hearing. LEE was named in a Criminal Information filed on March 4, 2013 charging her with Corrupt Interference with the Internal Revenue laws.  On May 14, 2013, LEE pled guilty to that charge.

According to the investigation, LEE, a graduate of the University of North Carolina Dental School, has an extensive history of non-compliance with the revenue laws.  From 1996 through and including 2009, Dr. LEE endeavored to obstruct and impede the Internal Revenue Service by failing to file income tax returns or pay taxes she claimed to owe, filing false income tax returns, forming sham entities to disguise personal expenses as payments related to her dental practice, transferring ownership of her real property to nominees, and fraudulently seeking to discharge her IRS debt by filing for bankruptcy.  Despite having numerous opportunities to settle her obligations with the IRS administratively, Dr. LEE maintained a defiant position, refusing to comply with the tax laws.  She affirmatively sought to divert her income into sham corporations and hide her assets from seizure.  Finally, in 2009, she filed for bankruptcy in an effort to discharge nearly $1 million in tax debt due and owing to the IRS.  The Civil Division of the US Attorney’s Office represented the IRS in US Bankruptcy Court and successfully defeated her attempts to discharge this debt.

Investigation of this case was conducted by the Internal Revenue Service Criminal Investigations. Assistant United States Attorney Katherine Burnette represented the IRS in the bankruptcy action and Assistant United States Attorney Susan B. Menzer prosecuted the case for the government.

NEW BERN - United States Attorney Thomas W. Walker announced today RAYE LYNN HOLLEY, 50,a formercorrectional officer at the Rivers Correctional Institution, Winton, North Carolina, and KENNETH DODD, a formerinmate at the Rivers Correctional Institution, were sentenced today by United States District Judge Louise W. Flanagan to 20 months and 37 months imprisonment, respectively.

Investigation revealed that HOLLEY, while employed as a correctional officer at the Rivers Correctional Institution,  accepted payments from inmates within the facility in return for smuggling in contraband items such as cell phones and cigarettes.  It further showed that DODD and other inmates paid bribes to correctional officers to gain their cooperation in the scheme.  Two others have been previously convicted and sentenced for their conduct in the scheme: former Rivers Correctional Officer Rhonda Boydwassentenced in July 2013 to 20 months’ imprisonment; and former Rivers inmate Roland Bazemore was sentenced in April 2013 to 30 months’ imprisonment.  In May, 2013, former correctional officer Rashonda Cross entered a plea of guilty for conspiring to accept bribes from inmates at Rivers, as well.  Cross is set to be sentenced in December 2013.

Investigation of this case was conducted by the Department of Justice, Office of Inspector General and the Federal Bureau of Investigation, with assistance provided by the United States Postal Inspection Service.

WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court yesterday, Senior United States District Judge James. C. Fox sentenced WAYNEMONDEMOUNT BULLOCK, 25, of Henderson, North Carolina, to 92 months imprisonment followed by 3 years of supervised release.  On May 2, 2013 a federal jury convicted BULLOCK for retaliating against a federal witness in violation of Title 18, United States Code, Section 1513(b)(1).
According to the investigation, on October 5, 2012, BULLOCK participated in an assault on a federal witness who had previously testified before Senior Judge James C. Fox.  BULLOCK and a co-defendant approached the federal witness at a convenience store in Henderson, NC, accused the witness of  being a “snitch” and proceeded to beat the witness. BULLOCK was recently released from the North Carolina Department of Corrections prior to assaulting the victim.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.

Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Henderson Police Department. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.

RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced TODD ALLEN FULCHER , 49, to six months imprisonment, followed by three years of supervised release, and an order of restitution.
FULCHER was named in an Indictment filed on October 3, 2012, charging him with one count of Bankruptcy fraud and four counts of Concealment of assets, false oaths and claims, bribery, and one count of Destruction, alteration or falsification of records in relation to a bankruptcy case in the Eastern District of North Carolina.  On April 10, 2013, FULCHER pled guilty to one count of Bankruptcy fraud in violation of Title 18, United States Code, Section 157(3) and one count of Destruction, alteration or falsification of records in violation of Title 18, United States Code, Section 1519. 
According to the investigation, beginning on or about January 9, 2010, and continuing through November 2011, FULCHER, devised a scheme to defraud by means of materially false and fraudulent pretenses and representations as part of a bankruptcy proceeding.  He knowingly made false statements on his bankruptcy Schedules and Statement of Financial Affairs; FULCHER also knowingly concealed bank account information; income information; real estate located in Trenton, North Carolina; three shotguns and two riles;  and wood working hand tools with regard to his bankruptcy after filing for Chapter 13 relief under Title 11.  Additionally, FULCHER fraudulently concealed personal property belonging to the estate, including a boat, firearms, and a motorcycle.  Additionally, he knowingly concealed vehicles belonging to Fulcher Tire Sales & Service, Inc. which belonged to the corporation’s bankruptcy estate.
The United States Bankruptcy Court for the Eastern District of North Carolina previously had entered orders detaining FULCHER for contempt for his failure to attend creditors’ meetings and to abide by the orders of the court.

Investigation of this case was conducted by the Federal Bureau of Investigation.  Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.

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.

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.

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.

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.

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.

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.

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. 
     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.

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.

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).
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.

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.
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.

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

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.
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.

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.

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.
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.

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.

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).

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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)

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.