Eastern District of North Carolina

RALEIGH – The United States Attorney’s Office announced the unsealing of numerous federal cases and other court actions involving attorneys, mortgage brokers, real estate professionals, and developers, who are charged with federal crimes pertaining to mortgage fraud.

“Mortgage fraud impacts families and devastates neighborhoods.  The FBI is committed to protecting our nation’s economy by aggressively investigating those who attempt to undermine the financial stability of our housing market,” said John Strong, Special Agent in Charge of the Charlotte Division of the FBI.

“The Federal Deposit Insurance Corporation - Office of Inspector General is committed to its partnerships with others in the law enforcement community as we address mortgage fraud cases throughout the country.  The American people need to be assured that their government is working to ensure integrity in the financial services and housing industries and that those involved in criminal activities that undermine that integrity will be held accountable,” commented the Federal Deposit Insurance Corporation Inspector General Jon T. Rymer.

“We recognize the negative impact that mortgage fraud has on our economy and on our communities.   With actions like those announced today, a very clear message is sent: if you don’t operate within the boundaries of the law, we will not hesitate to act.  We will continue to work with our law enforcement partners to ensure the US Mail is safe and not used to further schemes like this”, said Inspector in Charge Keith Fixel, US Postal Inspection Service. 

HUD-OIG Special Agent in Charge Lester Fernandez said:  “We are especially committed to aggressively pursuing mortgage and real estate professionals who instead of honoring their fiduciary responsibilities, abuse their positions and cause harm to FHA’s mortgage insurance programs.  HUD-OIG is committed to working cooperatively with our law enforcement partners to bring these individuals to justice and protect the integrity of our programs.”

“IRS Criminal Investigation is committed to uncovering fraud and abuse in all facets of the housing market – a market upon which so many American families have pinned their hopes and their futures for so many years," said Special Agent in Charge, Jeannine A. Hammett, Charlotte Field Office. "Partnering with the United States Attorney’s Office and other federal agencies,  IRS Criminal Investigation is committed to combating mortgage fraud and other financial crimes to protect the American homeowner and the national economy."

Each of the following cases is being prosecuted by the Economic Crimes Section of the United States Attorney’s Office as a part of its Mortgage Fraud Task Force which was created in June of 2010. The investigation of these cases has been jointly conducted by various agencies, including the Federal Bureau of Investigation (FBI), the United States Department of Housing and Urban Development Office of the Inspector General (HUD-OIG), the Internal Revenue Service Criminal Investigation (IRS-CI), the United States Postal Inspection Service, the Federal Deposit Insurance Corporation - Office of the Inspector General (FDIC-OIG) and the Raleigh Police Department.  Assistant United States Attorney William M. Gilmore represents the United States in each of these matters.

1.  TRIPLE-R ENTERPRISES ET AL. INVESTIGATION

     Chief United States District Judge James C. Dever ordered the unsealing today of the cases against mortgage broker DEXTER TIRRELL JONES, 42 of Raleigh; developer RICKY LAMONT CONGLETON, 43, of Zebulon; closing attorney PHILLIP GRAHAM ROSE, 42 of Raleigh; developer VINCENT MALDINI, 46, of Seabright, New Jersey; and developer JOHNNY RAY PEELE, 43, of Wake Forest. The United States Attorney’s Office also announces the filing of criminal charges against JOSEPH CARL HOLLIS, 35, of Raleigh; developer DWAYNE THOMAS HALL, 49, of Wake Forest, and former real estate broker, TRESHELL MAYO HERNDON, 39, of Raleigh.  JONES, CONGLETON, ROSE, MALDINI, PEELE, HALL, and HERNDON, are each charged in a one-count criminal information with Conspiracy to Commit Bank and Wire Fraud (and in some instances, also Conspiracy to Commit Mail Fraud), in violation of Title 18, United States Code, Section 1349, which carries a maximum penalty of 30 years in prison and a $1 million fine, or twice the gain or loss from the conspiracy, whichever is greater.  HOLLIS is charged with Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371, which carries a maximum penalty of up to 5 years in prison and a fine of up to $250,000, or twice the gain or loss from the conspiracy, whichever is greater.

The charging documents collectively allege that between 2003 and 2009, CONGLETON, HERNDON, PEELE, HALL, MALDINI, JONES, HOLLIS, ROSE, and others known to the United States Attorney, were involved in a conspiracy to defraud numerous banks and lenders in the United States, resulting in mortgage loan disbursements exceeding $20 million, $5 million in loan proceeds, and losses exceeding $1 million.  The conspiracy further resulted in substantial losses to the United States Department of Housing and Urban Development (HUD) through its Federal Housing Administration (FHA) program.

The charging documents indicate that various developers in the scheme, including but not limited to CONGLETON, operating through Triple R Enterprises, LLC; HERNDON, operating through Herndon & Herndon Enterprises, LLC; HALL, operating through Dwayne T. Hall Builders; PEELE, operating through P.A.P’s Custom Home Builders, LLC and C and P Custom Homes, LLC; and MALDINI, operating through NY Construction, LLC, unlawfully profited from the sale of properties purchased or developed by the conspirators to individuals who did not have the financial means to purchase the properties, identified in the charging documents as “straw buyers”.  To execute the scheme, CONGLETON, HERNDON, HALL, PEELE, MALDINI, and others involved in the scheme referred to as “Builders”, would cause entities owned or controlled by them to purchase and develop a property for quick resale.  The builders caused individuals, referred to herein as “Intermediaries”, to locate individuals who were willing to allow their name and credit to be used to purchase properties from the Builders.  The Intermediaries, including but not limited to HOLLIS, MALDINI and then mortgage broker, JONES, assisted the straw buyers to complete a loan application with a lender.  For their services to the Builders, the conspirators paid the Intermediaries a kickback, or lump sum of cash, from the loan proceeds used by the straw buyers to purchase the properties from the Builders. 

Conspirators enticed the straw buyers to participate in the scheme by making certain promises and representations including, but not limited to the following:  (1) The straw buyers would be paid a sum of cash for purchasing the properties, (2)the straw buyers would not be required to make a down payment, (3) the straw buyers were told that the homes would be rented and the rental income would be used to pay the mortgage,(4) the straw buyers would not be required to make interest payments on the mortgage loans utilized to purchase the properties from the Builders.

CONGLETON, HERNDON, HALL, PEELE, MALDINI, and other Builders executed contracts to sell properties to the straw buyers for their appraised value, but set aside 15 to 20% of the sales price to use as the straw buyer’s down payment, and to pay kickbacks to the straw buyers and others participating in the scheme.  The Builders further obtained and caused others to obtain cashier’s checks from accounts owned or controlled by the Builders to cover the down payment obligations of the straw buyers.  The cashier’s checks were written to make it appear to lenders and banks that the straw buyers were providing the down payment funds when, in fact, such funds came from the Builders. These cashier’s checks were given to a closing attorney who handled the sale of the property from the Builder to the straw buyer.

Raleigh attorney PHILLIP GRAHAM ROSE served as the closing attorney on some, but not all, real estate transactions between Builders and straw buyers that were funded by banks and mortgage lenders in the scheme.  In connection with the transactions involving the Builders and straw buyers, ROSE created and executed, and had the buyers and sellers execute, HUD-1 settlement statements that falsely indicated that the borrower brought cash to the closing when, in fact, as ROSE knew, the cash was provided by the Builders, including CONGLETON, HERNDON, HALL, PEELE, MALDINI, and others.  ROSE and his staff transmitted the false HUD-1 settlement statements via mail and interstate wires to banks and mortgage lenders who relied upon them in funding the transactions. The Builders and straw buyers executed the HUD-1 settlement statements reflecting that the straw buyers were making the down payment on the properties, when in fact, the down payments were made by the Builders. 

Because of the foregoing actions, banks and other lenders were deceived into disbursing loan proceeds to fund the purchase of the properties from CONGLETON, HERNDON, HALL, PEELE, MALDINI, and other Builders.   The banks and lenders issued loans they either would not otherwise have made, or issued loans on terms they would not otherwise have authorized, had the Builders and others not concealed the true terms of the transactions, the actual qualifications and intentions of the straw buyers, the promises and representations made by the Builders and others to the straw buyers, and the false down payments of the straw buyers as reflected on the HUD-1 settlement statements.

Rental income was collected and sometimes not forwarded to pay the mortgage, as promised.  The Builders also did not always make interest payments on loans issued to the straw buyers.  As a result of the scheme, straw buyers were left accountable for loans that they did not have the financial means to repay, and banks were forced to initiate foreclosure proceedings and sell the properties at a loss.

In an effort to recover losses associated with the scheme, the United States Attorney’s Office, with the cooperation of the various federal agencies participating in the Mortgage Fraud Task Force, and the United States Marshal’s Service, has seized or encumbered various parcels of real property and other property in North Carolina deemed to be forfeitable to the United States as criminal proceeds of the offense. 

ROSE, JONES, CONGLETON, and MALDINI have each admitted their their role in the scheme and are awaiting sentencing, anticipated to occur later in 2013.  PEELE is scheduled to appear on the charges on July 15, 2013.  HERNDON, HALL, and HOLLIS are each scheduled to appear on the charges on August 19, 2013.

The investigation of this matter is ongoing and anyone with knowledge is encouraged to contact the FBI at (704) 672-6100.  If you believe that you are a victim in connection with this investigation please contact the Victim/Witness Coordinator for the United States Attorney’s Office at (919) 856-4003.

2.   EZN HOMES / PREMIER PROPERTIES INVESTIGATION

Chief United States District Judge James C. Dever ordered the unsealing today of the cases against real estate developers DAVID LEWIS JOHNSON, 39 of Cary, and ARTHUR LEE BARNES, JR., 46 of Rocky Mount.  The BARNES and JOHNSON cases are related to the pending cases against real estate agent MARK TKAC, 47, of Raleigh, former mortgage broker MARK THOMAS BOWE, 56, of Jonesboro, Georgia, LILLIANA DELIA DEIAC, 43, of Jamaica, New York, and the recently concluded case against closing attorney JEFFERY SCOTT TAGGART, 48, of Winterville.  JOHNSON, BARNES, and TKAC, were each charged in a one-count criminal information with Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 1349, which carries a maximum penalty of 30 years in prison and a $1 Million fine.  TAGGART was charged with Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371, which carries a maximum penalty of 5 years in prison and $250,000 in fines, and Subscribing to a False Income Tax Return in violation of Title 26, United States Code, Section 7206(1), which carries a maximum penalty of 3 years in prison and a $100,000 fine, plus costs of prosecution.  BOWE was charged in an indictment with Conspiracy to Commit Wire and Bank Fraud, in violation of Title 18, United States Code, Section 1349; Bank Fraud, in violation of Title 18, United States Code, Section 1344; Wire Fraud, in violation of Title 18, United States Code, Section 1343; and Making False Statements to Federally Insured Financial Institutions, in violation of Title 18, United States Code, Section 1014; all of which carry a maximum penalty of 30 years in prison and a $1 Million fine.  

The criminal informations for JOHNSON, BARNES, TKAC, and TAGGART collectively allege that between September of 2002 and May of 2008, JOHNSON, BARNES, TKAC, and TAGGART entered into an agreement to defraud banks and home mortgage lenders located throughout the United States.  The charges indicate that JOHNSON, operating through EZN Homes, Inc., BARNES, operating through Premier Investments, Inc., and TKAC recruited investors, who were in fact “straw buyers,” to secure home mortgage loans under the guise of an investment plan.  The straw buyers allowed the conspirators to use their name and credit to purchase properties and obtain loans from banks and mortgage lenders.  The straw buyers lacked the financial means to service the debt on the loans acquired in their names.  The straw buyers also did not have a long-term interest in the properties that the conspirators caused to be purchased in their names.  The conspirators induced the straw buyers to allow their name and credit to be used by making various representations, including, but not limited to, the promise of a cash kickback from the loan proceeds disbursed at the time of the real estate closing.

TKAC, a licensed real estate broker at the time, participated in the conspiracy first by acting as a straw buyer, and later recruiting others to serve as straw buyers to facilitate the scheme by JOHNSON and BARNES.

The conspirators directed straw buyers to conduct the real estate closings with co-conspirator attorney TAGGART.  TAGGART prepared false HUD-1 settlement statements for execution by the straw buyers as a part of the real estate closing and loan funding process.  TAGGART then caused the HUD-1 settlement statements to be transmitted via mail and wire to banks and mortgage lenders, including FDIC regulated financial institutions, under the pretense that they reflected the economic truth of the underlying transaction. 

In fact, however, the HUD-1 settlement statements prepared by TAGGART as a part of the scheme routinely contained false statements that were material to the lenders' funding decisions including, but not limited to:  the existence and degree of the buyer's down payment, the actual contract price for the property, the rightful owner of the real estate specific to the transaction, and the true recipient of all loan proceeds disbursed by banks pursuant to the real estate closing.

The various banks and mortgage lenders who issued loans related to the mortgage fraud scheme were deceived by the use of straw buyers, in addition to the foregoing false and fraudulent statements made by JOHNSON, TAGGART, and other co-conspirators in connection with the loan closings.  As a result of the scheme, lenders issued several million dollars in loans, a substantial portion of which are in default or foreclosure. 

JOHNSON, BARNES, and TKAC each admitted their role in the scheme and are awaiting sentencing.  TAGGART was previously sentenced on April 17, 2013, to 36 months in prison, followed by three years of supervised release for his role in the offense.  JOHNSON, BARNES, and TKAC are scheduled to be sentenced in October of 2013 by Chief Judge Dever in Raleigh. 

BOWE was indicted on April 4, 2013 for, among other things, Conspiracy to Commit Wire and Bank Fraud.  The indictment alleges that BOWE, a former mortgage broker operating through New Equity Mortgage, LLC and Anna Mortgages, LLC, participated in the scheme by falsifying various aspects of loan applications including, but not limited to, the amount and source of income and assets of borrowers, the existing debts of borrowers, and borrowers’ intent to occupy the property being purchased as the borrower’s primary residence.  It is also alleged that BOWE and another promoted the scheme by supplying false verifications of deposit and false account statements purporting to show that borrowers held assets with “Mutual Southern Investments”, when in fact Mutual Southern Investments did not exist, and the assets were entirely fictitious.  BOWE’s arraignment is presently scheduled for Chief Judge Dever’s August 5, 2013 term of court.

DEIAC was indicted on April 4, 2013 for Making False Statements to a Federally Insured Financial Institution, and Making Material False Statements to the FBI.  The indictment alleges that DEIAC forged her husband’s name and credit information without his knowledge on a $1,950,000 loan from Wells Fargo Bank for her purchase of 1016 Clear Creek Farm Drive in Raleigh.  The indictment further alleges that DEIAC falsely told the FBI that she believed she was leasing a building in New York when she executed loan and closing documents for the Clear Creek Farm property.  DEIAC is scheduled to be arraigned on the charges against her at Chief Judge Dever’s August 5, 2013 term of court in Raleigh.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent unless and until proven guilty in court.

The investigation of this matter is ongoing and anyone with knowledge is encouraged to contact IRS-CI at (910) 254-5150.  If you believe that you are a victim on connection with this investigation please contact the Victim/Witness Coordinator for the United States Attorney’s Office at (919) 856-4003.

3. ALPINE PROPERTIES, ET AL. INVESTIGATION

The United States Attorney’s Office also announces that former Raleigh developer JAMES THOMAS WEBB, 52, of Miami, is presently scheduled to be sentenced in August of 2013 by Chief United States District Judge James C. Dever in Raleigh.  WEBB was indicted on charges of Conspiracy to Commit Bank and Wire Fraud, in violation of Title 18, United States Code, Section 1349; 10 counts of Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2; 3 counts of Wire Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1343 and 2; and 36 counts of Making False Statements to Influence Banks on Loans and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1014 and 2.  On March 18, 2013, WEBB pleaded guilty to the offense of Conspiracy to Commit Wire and Bank Fraud, the maximum punishment for which is 30 years in prison and up to $1,000,000 in fines, or twice the gain or loss arising from the offense, whichever is greater.

WEBB’s case relates to the pending cases against former closing attorney AMY ROBINSON, 35, of Rolesville, former real estate appraiser, JACKIE GALE WEAVER, 55, of West Hamlin, West Virginia, and former national appraisal instructor, LARRY MAX MCDANIEL, 71, of Vienna, West Virginia, who have each pleaded guilty to their roles in the scheme. ROBINSON faces up to five years in prison and a $250,000 fine on the charge of Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371.  WEAVER faces up to five years in prison and a $250,000 fine for Conspiring to Make False Statements on Loans in violation of Title 18, United States Code, Section 371.  MCDANIEL faces up to 30 years in prison and $1 Million fine for Making False Statements on Loans and Aiding and Abetting, in violation of Title 18, United States Code, Section 1014 and 2.

WEBB’s indictment charges that between 2002 and 2006, WEBB operated various real estate companies, including Alpine Properties, LLC and Webb Builders, LLC for a profit.  WEBB promised investors in multiple states quick, large, and safe financial gains by investing money with him.  WEBB promised investors that he would use their money to purchase, renovate, and resell properties to first-time home buyers in various states, including North Carolina, Virginia, and Tennessee.  WEBB caused investors to take out loans on properties that he and his companies had allegedly renovated.   

The indictment further alleges that despite alleged philanthropic and humanitarian objectives, that WEBB carried out a fraud upon both the investors who gave cash to WEBB, and the banks and lenders who WEBB caused to disburse loan proceeds.  According to the indictment, WEBB conspired with former attorney, ROBINSON, to falsify closing statements associated with the loan transactions.  It is alleged that the closing statements falsified various facts, including the amount of money paid to WEBB on the transactions.  WEBB is also alleged to have conspired with a former appraiser and national appraisal instructor, MCDANIEL, and his associate, WEAVER, to falsify appraisal reports that were given to banks and lenders in connection with investor loans.  The appraisal reports falsely stated that MCDANIEL had physically viewed the properties, when in fact he had not.  The indictment also alleges that the properties sold to investors and financed by banks were not always completed or in the condition represented in the appraisal reports.

During the course of the scheme, the indictment charges that WEBB lived lavishly, residing in a multi-million dollar mansion, driving expensive vehicles including a Bentley, traveling extensively, and otherwise paying himself handsomely. WEBB is alleged to have abruptly left North Carolina for Florida in 2004, where he continued to market his services under new company names.

According to the indictment, based upon WEBB’s statements and representations to investors, various individuals collectively invested millions of dollars with WEBB and his companies.  Additionally, banks and lenders are alleged to have disbursed millions of dollars in loans, leaving investors holding millions in debt.  The indictment alleges that WEBB left various neighborhoods in North Carolina and Virginia blighted with boarded up and dilapidated homes, many of which were ultimately demolished as uninhabitable.

MCDANIEL, 71, pleaded guilty in federal court on June 11, 2012, to Making False Statements to Federally Insured Financial Institutions, and Aiding and Abetting.  WEAVER pleaded guilty in federal court on September 21, 2011, to Conspiracy to Make False Statements to Federally Insured Financial Institutions.  ROBINSON, 35, pleaded guilty in federal court on May 3, 2010, to conspiracy to commit mail, wire, and bank fraud.  Sentencing in the cases of MCDANIEL, WEAVER, and ROBINSON, is presently scheduled at the same time as WEBB’s sentencing during Chief Judge Dever’s August 2013 term of court.

The investigation of this matter is ongoing and anyone with knowledge is encouraged to contact the FBI at (704) 672-6100.  If you believe that you are a victim on connection with this investigation please contact the Victim/Witness Coordinator for the United States Attorney’s Office at (919) 856-4003.

4. RBR CAPITAL ET AL. INVESTIGATION

The United States Attorney also announces the upcoming sentencings in August of 2013 for the pending cases against developer JUSTIN LEE ROOKS, 31, of Loris, South Carolina; developer MICHAEL THOMAS BARTLETT, 46, of Myrtle Beach, South Carolina; closing attorney ROBERT HAROLD MELVILLE, JR., 50, of Lake Waccamaw; and ANTHONY MICHAEL TEW, 31, of Conway, South Carolina.   On December 11, 2012, ROOKS and BARTLETT pled guilty to Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 1349.  MELVILLE pled guilty to Conspiracy to Commit Bank and Wire Fraud, in violation of Title 18, United States Code, Section 1349.  The charges against MELVILLE, ROOKS, and BARTLETT carry maximum penalties of 30 years in prison and up to $1 Million in fines or twice the gain or loss from the conspiracy, whichever is greater. On February 12, 2013, TEW pled guilty to Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 371, which carries a maximum term of imprisonment of 5 years and up to $250,000 in fines.

The charging documents in these cases collectively allege that between May of 2004 and August of 2008, ROOKS, BARTLETT, and others conspired to defraud banks and lenders in connection with the purchase, development, and resale of properties in Columbus, Brunswick, and New Hanover counties.       It is further alleged that the conspirators solicited individuals at seminars in Raleigh and elsewhere to allow construction loans to be obtained in their names for the benefit of the conspirators in exchange for cash.  The conspirators told the buyers that the buyers would not have to make a down payment or interest payments on the loans, and that the properties purchased in their names would be sold within twelve months.  TEW and other conspirators also posted signs which included such representations as, “easy financing” and “no down payment required,” even though the buyer/borrowers were generally required to make down payments at the time of the closings.  The buyers were told that if properties could not be sold in twelve months, the conspirators would buy the properties back. 

The conspirators in fact enticed the buyers to participate in the transactions and engaged in various actions to make it appear to the banks and lenders that the buyers were qualified for the loans.  The charges allege that TEW and other conspirators deposited money into the bank accounts of the buyers to make it appear that they had sufficient assets to conduct the transactions.  To close the loans, the conspirators also referred the buyers to MELVILLE, who was at that time a North Carolina attorney who practiced real estate law.  MELVILLE participated in the conspiracy by engaging in actions that made it appear to the banks and lenders that the buyers had given down payment money at the time of closing when, in fact, the buyers did not bring such money.

The banks and lenders who loaned funds to the buyers were not informed of the cash kickbacks to the buyers by the conspirators.  The banks and lenders were also not informed that the buyers did not in fact have the cash to close the transactions, and that the down payment money, if any, was provided by the conspirators.

Ultimately, according to the charging documents, the conspirators were unable to sell many of the properties purchased in the names of the buyers.  The buyers did not have the means to repay all of the loans obtained in the names of the buyers and, as a result, many of the loans went into default.  The banks and lenders were forced to sell the properties at a substantial loss.

The investigation of this matter is ongoing and anyone with knowledge is encouraged to contact IRS Criminal Investigation at (910) 254-5143.  If you believe that you are a victim on connection with this investigation please contact the Victim/Witness Coordinator for the United States Attorney’s Office at (919) 856-4003.

GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today JASON LEMAR MEDLYN, 31, of Durham, North Carolina and IRESHIA DONTE SUMMERS aka ERIC SUMMERS, 35, also of Durham, North Carolina pled guilty before United States Magistrate Judge Robert B. Jones, Jr. to several firearms related charges.

MEDLYN and SUMMERS bothpled guilty to one count each of Conspiracy, in violation of Title 18, United States Code, section 371; Possession of Firearms in a School Zone and aiding and abetting, in violation of Title 18, United States Code, sections 922(q)(2)(A) and 924 and 2; and Felon in Possession of a Firearm and Ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924.

According to the investigation, on May 31, 2012,  MEDLYN and SUMMERS broke into two residences in Granville County and stole, among other things, personal property, firearms and ammunition. The defendants were discovered while still at the second residence by a Granville County Sheriff’s Deputy responding to a call regarding a residential break in.  Two males, later identified as MEDLYN and SUMMERS, jumped into a vehicle and sped away.  The passenger in the fleeing vehicle fired shots at the pursuing deputy.  A North Carolina State Highway Patrolman picked up the chase and the passenger also fired shots at the trooper. 

During the chase the car hit mailboxes and stopped near an auto dealership and a garage.  Three guns were found near the vehicle along with a stolen television, nooks, and jewelry.  The defendants traveled through two school zones with firearms during the chase.

MEDLYN and SUMMERS face a maximum sentence of 240 months imprisonment along with three years of supervised release at sentencing.  They are expected to be sentenced during the October 8, 2013 term of court by Senior United States District Judge Malcolm J. Howard.

This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.

Investigation of this case was conducted by the Granville County Sheriff’s Office, the Durham Police Department, North Carolina Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney S. Katherine Burnette prosecuted the case.

WILIMINGTON - United States Attorney Thomas G. Walker announced that in federal court on July 2, 2013 JOHN ALBRITTON, 64, of Chocowinity,, North Carolina, was sentenced by Senior United States District Judge James C. Fox to 180 months imprisonment and five years of supervised release for one count of Possession of Firearms and Ammunition by a Felon, in violation of Title 18, United States Code, Sections 922(g)(1) and 924 and two counts of Distributing a Quantity of Cocaine Base (Crack), in violation of Title 21, United States Code, Section 841(a)(1).  In addition, the Court Ordered the Forfeiture of three shotguns and ammunition and one rifle.

On March 8, 2013 ALBRITTON was found guilty, following a three day trial in Wilmington, North Carolina of distributing a quantify of cocaine base (crack) on June 2, 2010 and May 25, 2010 and of possessing four firearms and ammunition on June 4, 2010. 

After a joint investigation conducted by the Beaufort County Sheriff’s Office (BCSO) in Washington, North Carolina and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in Wilmington, North Carolina, law enforcement established that ALBRITTON operated an illicit business, Lil’ John’s Club, from a building adjacent to his residence.  At the club, patrons purchased alcohol and drugs from ALBRITTON, activity which dated from early 2008 and included numerous citizen complaints to BCSO for noise ordinance violations and assaults.

Assistant United States Attorney Thomas B. Murphy prosecuted the case.

Raleigh - United States Attorney Thomas G. Walker announced that in federal court on June 21, 2013 Chief United States District Judge James C. Dever III, sentenced KEVIN BROWN, 33, of Brunswick County, North Carolina, to 92 months imprisonment followed by 4 years supervised release.

On January 22, 2013, BROWN pled guilty to conspiring to possess with the intent to distribute and distributing more than 28 grams of cocaine base (crack).

The Brunswick County Sheriff’s Office with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives made seven controlled purchases of cocaine base (crack) between October 2011 and January 2012 from BROWN in Brunswick County.

This case was brought as a part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation entitled Buggsnatcher, investigating importers and multi-level distributors of cocaine and crack cocaine.  So far 20 persons have been sentenced in federal court as a part of this OCDETF.

Investigation of this OCDETF case is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the North Carolina State Bureau of Investigation; the Wilmington Police Department; the New Hanover County Sheriff’s Office and the Brunswick County Sheriff’s Office. Special Assistant United States Attorney Timothy Severo represents the government.  

Mr. Severo is a prosecutor with the New Hanover County District Attorney’s Office.  District Attorney Ben David has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.

NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today BRUCE ARTHUR HOWARD, 55, was sentenced by Federal District Court Judge Louise W. Flanagan to 274 months imprisonment and lifetime supervised release for receipt of child pornography.  HOWARD had been convicted of Taking Indecent Liberties With A Child in Forsyth County in a separate case in 1987.  Prior to his arrest, HOWARD had been employed as a dance instructor in multiple studios, including studios in Zebulon, Wilson, and Knightdale.

The North Carolina State Bureau of Investigation developed a lead in August of 2011 that an individual in Louisburg, North Carolina was sharing child pornography over the Internet.  The crime was traced to the defendant’s residence, where detectives executed a search warrant in October 2011 and found numerous images and videos of child pornography.  Subsequent forensic examination demonstrated that HOWARD’s collection included images depicting the sexual abuse of prepubescent children and the sadistic abuse of children.  The investigation further revealed that the defendant had induced a child to create and send pornographic images of the child to the defendant, and had engaged the child in a discussion about engaging in sex acts.   Notwithstanding his prior sex offense, HOWARD was not required to register as a sex offender.

“This case is an excellent illustration of the strong connection between child pornography crimes and the sexual abuse of children,” said U.S. Attorney Thomas G. Walker.  “Child pornography crimes represent a grave danger, both direct and indirect, to the children in our community.  We will continue to make a priority of combating crimes that exploit and abuse children.”

This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level.  For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.

Investigation of this case was conducted by the North Carolina State Bureau of Investigation with the assistance of the Franklin County Sheriff’s Office.  Prosecution was coordinated with the Franklin County District Attorney’s Office.  Assistant United States Attorney Jay Exum prosecuted the case for the United States. 

RALEIGH – United States Attorney Thomas Walker and District Attorney Scott Thomas announced that today in federal court today, Chief United States District Judge James C. Dever III sentenced Walter Terion Brown , 25, of New Bern, NC to 108 months imprisonment, followed by 4 years of supervised release.  BROWN was also ordered to pay $2,160 in restitution to the New Bern Police Department and Carteret County Sheriff’s Office. 

BROWN was named in an Indictment filed on September 25, 2012 charging him with possessing with intent to distribute 28 grams or more of cocaine base (crack).  On January 22, 2013, BROWN pled guilty to that charge.

As part of a separate investigation, a New Bern Police Department detective, acting undercover, purchased cocaine base (crack) from Tinnius Remone Bell on May 26, 2011.  Investigation revealed that Bell obtained the crack he sold to the undercover officer from WALTER TERION BROWN.  Officers from the Coastal Narcotics Enforcement Team then utilized a confidential informant to purchase cocaine base (crack) directly from BROWN on four additional occasions in 2011.  In total, BROWN was held responsible for possessing with the intent to distribute and distributing over 441 grams of cocaine base (crack).  Tinnius Remone Bell was sentenced on November 2, 2012 to 72 months imprisonment, followed by 5 years of supervised release for his role in the distribution of cocaine and cocaine base (crack) in the New Bern area.  

Investigation of this case was furthered by the Coastal Narcotics Enforcement Team, a multi-agency task force comprised of agents from the Carteret County Sheriff’s Office, Craven County Sheriff’s Office, Havelock Police Department, Jones County Sheriff’s Office, New Bern Police Department, Pamlico County Sheriff’s Office, River Bend Police Department, State Bureau of Investigation and Trent Woods Police Department.  Special Assistant United States Attorney Augustus Willis represented the government in these matters.  Mr. Willis is a prosecutor with the District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties.  District Attorney Scott Thomas has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.  Mr. Wills’ position is  funded through a grant provided by the Governor’s Crime Commission.

NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today that WILLIAM DAVID DEVANE 30, of Maryland (formerly of Fayetteville, North Carolina) pled guilty before United States District Judge Louise W. Flanagan to Theft of firearms from a Federal Firearms Licensee in violation of Title 18, United States Code, Sections 922(u) and 924 and Possession of stolen firearms in violation of Title 18, United States Code, Sections 922(j) and 924.

According to the investigation, DEVANE broke into the Guns Plus business located in Spring Lake, North Carolina and stole  15 firearms in addition to ammunition, magazines, and scopes. Officers responded to the scene and found DEVANE lying on top of a moving van parked near the gun store and the stolen firearms were located nearby.

DEVANE faces a maximum sentence of 20 years imprisonment along with a total of 3 years of supervised release at his sentencing scheduled for October 2, 2013 in New Bern.

Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Cumberland County Sheriff’s Office, and the Spring Lake Police Department. Assistant United States Attorney S. Katherine Burnette prosecuted the case.

RALEIGH- United States Attorney Thomas G. Walker announced that in federal court yesterday VICTOR MCCLAIN, 61, was sentenced by Chief United States District Chief Judge James C. Dever to 235 months imprisonment, 5 years supervised release, and was ordered to pay a $200.00 special assessment.  MCCLAIN was sentenced pursuant to the Armed Career Criminal Act.

On January 9, 2013, MCCLAIN pled guilty to Robbery of a Business Engaged in Interstate Commerce and Possession of a Firearm by a Felon for an offense that occurred on December 7, 2011. 

On December 7, 2011, MCCLAIN and his co-defendant, Aaron Monroe robbed the Game Giant in Wilmington, North Carolina.  After pretending to shop for various items, the men brandished firearms and stole money from the store and three individuals present in the store.  After stealing the money, MCCLAIN and his co-defendant barricaded the three victims into the bathroom to facilitate their escape.  One of the men managed to free himself from the bathroom and ran out of the store where an officer with the Wilmington Police Department was nearby.  The victim yelled to the officer that a robbery had taken place and pointed out the defendants who were leaving in a car. 

Officers with the Wilmington Police Department attempted to stop the vehicle in which the defendants were traveling, however, the defendants refused to stop.  During the chase, MCCLAIN threw the handguns used in the course of the robbery out of the window.  When the defendants came to a stop, MCCLAIN attempted to flee the area on foot, however, he was apprehended very quickly.

Investigation of this case was conducted by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Special Assistant United States Attorney Charity Wilson is serving as prosecutor for the government. Ms. Wilson is a prosecutor with the New Hanover County District Attorney's Office.  District Attorney Ben David has assigned her to the United States Attorney's Office to prosecute federal Project Safe Neighborhood cases and other violent crime cases.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday, Senior United States District Judge James C. Fox sentenced JAMES WILLIAM PAUL SANDERSON, 35, of Maxton, North Carolina, to 480 months imprisonment followed by 5 years supervised release.

On September 20, 2011, SANDERSON pled guilty to the distribution of 50 grams or more of cocaine base (crack) and a quantity of dihydrocodeinone (Percocet) in violation of Title 21, United States Code, Section 841(a)(1).

The evidence presented during SANDERSON’S sentencing hearing revealed that he was a significant trafficker who was responsible for the distribution of multiple kilograms of crack and powder cocaine.  The evidence also established that SANDERSON frequently used and possessed firearms during his drug activities.

This case is part of an Organized Crime Drug Enforcement Task Force investigation and was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives, the North Carolina State Bureau of Investigation, and the Robeson County Sheriff’s Office.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today LONNE BALOG, 43, was sentenced by Chief Federal District Court Judge James C. Dever to 151 months imprisonment and 20 years of supervised release for receipt of child pornography.

During the course of an investigation of online trafficking in child pornography, law enforcement identified BALOG as an individual using peer-to-peer technologies to obtain child pornography and to make such materials available to others.  After an undercover investigator downloaded child pornography images from BALOG’s computer, a search warrant was executed at his Wilmington home in June of 2012 by the New Hanover County Sheriff’s Office, the North Carolina State Bureau of Investigation, and the FBI.  BALOG admitted to frequent downloading of child pornography, and forensic examiners determined that BALOG had accumulated over 4,000 still images and over 600 videos depicting the sexual abuse of children.

United States Attorney Thomas Walker stated, “This case is a good example that prosecutors and investigators at every level successfully work together to make the Eastern District of North Carolina a safer place for our children.”

This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level.  For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.

Investigation of this case was conducted by the New Hanover County Sheriff’s Office, the North Carolina State Bureau of Investigation, and the FBI.  Prosecution was coordinated with the New Hanover County District Attorney’s Office.  Assistant United States Attorney Jay Exum prosecuted the case for the United States.

WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today, PAUL JOSEPH SCHMURA, JR., 49, of Burgaw, North Carolina, was sentenced by Senior United States District Court Judge James C. Fox to 121 months imprisonment followed by a lifetime of supervised release.

On February 19, 2013, SCHMURA pled guilty to one count of receipt of child pornography in violation of Title 18, United States Code, Section 2252(a)(2).

In February 2012, an undercover agent with the North Carolina State Bureau of Investigation initiated an online investigation related to the distribution of child pornography. The undercover agent identified a computer sharing known Child Pornography and captured the Internet Protocol (IP) address of the host computer.  The IP address allowed law enforcement  to identify a specific computer which led to the identification of SCHMURA.  A search of SCHMURA’S residence on February 27, 2012 led to the seizure of several computers, external hard drives, and media storage devices containing at least 14,678 images of child pornography.

This case is part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level.  For more information about this important national initiative, go to www.projectsafechildhood.gov.

Investigation of this case was conducted by the Federal Bureau of Investigation and the North Carolina State Bureau of Investigation.  Assistant United States Attorney Ethan A. Ontjes prosecuted this case for the United States.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III sentenced ISMAEL PARRILLA, 32, of Long Beach, California, to 180 months of imprisonment; LUIS GUTIERREZ RODRIGUEZ, 40, of Houston, Texas, to 162 months of imprisonment; HUMBERTO GARCIA, 26, San Pedro, California, to 100 months of imprisonment; GUILLERMO VILLARREAL SICAIROS, 30, of Culican, Mexico, to 156 months imprisonment; KATHERINE LASSWELL, 31, of Phoenix, Arizona, to 84 months imprisonment; and ELIZABETH VILLANUEVA, 44, of Tempe, Arizona, to 72 months imprisonment.  Each defendant will be under 5 years of supervised release upon their release from the Bureau of Prisons.  PARRILLA, RODRIGUEZ, GARCIA, and SICAIROS previously hadpled guilty to conspiracy to distribute and possess with the intent to distribute 500 grams or more of a substance or mixture containing a detectible amount of methamphetamine.  LASSWELL and VILLANUEVA previously had pled guilty to possession with the intent to distribute 500 grams or more of a substance or mixture containing a detectible amount of methamphetamine and aiding and abetting.

PARRILLA, RODRIGUEZ, and GARCIA facilitated the delivery of 4.1 kilograms of methamphetamine to Greenville, North Carolina. The methamphetamine was delivered to Greenville from California on June 22, 2012, by codefendant Christina Capers whose sentencing hearing is pending.  Law enforcement officers intercepted the car driven by Capers and found the methamphetamine stashed in a hidden compartment in the rear door of the car. 

     SICAIROS facilitated two deliveries of methamphetamine to eastern North Carolina from Mexico.  On April 1, 2012, law enforcement officers intercepted a car in Greenville that had 5.4 kilograms of methamphetamine hidden in the front bumper.  On May 4, 2012, SICAIROS, LASSWELL, and VILLANUEVA were arrested in Kinston, North Carolina, after law enforcement officers found 1.9 kilograms of methamphetamine hidden in a clothes dryer in the SUV driven by VILLANUEVA and occupied by LASSWELL.

     The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico.  These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico. 

The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. In addition, $2.2 million in U.S. Currency, 127 kilograms of cocaine with a street value of $3.8 million dollars, 41 pounds of crystal methamphetamine with a street value of $650,000, 160 pounds of marijuana with a street value of $170,000, 32 grams of heroin, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.

Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico;  the Internal Revenue Service - Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.

The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV.  Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Craven, Carteret and Pamlico Counties District Attorney’s Office.  District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.

GREENVILLE - United States Attorney Thomas G. Walker announced today that, STEPHEN A. LAROQUE, of Kinston, North Carolina, was convicted by a federal jury on all 12 counts involving theft from a Non-Profit receiving federal funds, money laundering, false statements to cover up a scheme, and filing false tax returns.

Walker stated, “We always thought that this case was about stealing, pure and simple.  The jury has now agreed.”

Special Agent in Charge Jeannine A. Hammett, Internal Revenue Service Criminal Investigation stated, "Mr. Laroque improperly used money belonging to a non-profit organization and he illegally concealed his actions.”

Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation, the United States Department of Agriculture, Office of Inspector General-Investigations, Raleigh Office, the Federal Bureau of Investigation and the North Carolina State Bureau of Investigation.  Assistant United States Attorney, Dennis M. Duffy prosecuted the case.

GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today, Senior United States District Judge Malcolm Howard sentenced TIROM MARSELLE TOLER, 23, of Smithfield, North Carolina, to 60 months imprisonment followed by 4 years supervised release. 

A Federal Grand Jury returned a Criminal Indictment on August 8, 2012, charging TOLER with aiding and abetting the distribution of 28 grams or more of crack cocaine.  On March 3, 2013, TOLER pleaded guilty to the drug distribution count.

The evidence in the case demonstrated that on or about September 21, 2011, TOLER and another person aided and abetted each other in the distribution of more than 28 grams of crack cocaine to an informant working with the Smithfield Police Department. 

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.

WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court yesterday, DAVID NEIL PHILLIPS, 38, of Kenly, North Carolina was sentenced by Senior United States District Judge James C. Fox to life imprisonment, followed by supervised release for a term of life.

On November 6, 2012, PHILLIPS pled guilty to one count of Conspiracy to Manufacture, Distribute, and Dispense and Possess With Intent to Distribute 500 Grams or More of a Mixture and Substance Containing a Detectable Amount of Methamphetamine and 5 Kilograms or More of Cocaine, in violation of Title 21, United States Code, Section 846, and Section 841(b)(1)(A) and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, United States Code Section 924(c)(1)(A).

According to the investigation, from September 2008 until August 2011, PHILLIPS is accountable for 47.0206 kilograms of cocaine, 12.8864 kilograms of crystal methamphetamine, and 140 grams of methamphetamine.  Firearms were possessed in connection with PHILLIPS drug-trafficking activities.

Investigation of this case was conducted by the Johnston County Sheriff’s Office and the North Carolina State Bureau of Investigation. Assistant United States Attorney Jennifer E. Wells prosecuted the case.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrence W. Boyle sentenced SHAWN CHRISTOPHER ELLIOTT, of Windsor, North Carolina to 70 months of imprisonment followed by   5 years of supervised release.  Judge Boyle also sentenced ELLIOTT to 37 months of imprisonment concurrent to the 70 month sentence for violating terms of ELLIOTT’S supervised release related to his previous federal drug conviction.  ELLIOTT pled guilty to conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine and a quantity of marijuana on August 20, 2012.

ELLIOTT was arrested in Greenville, North Carolina, on June 20, 2011, after being found in possession of $107,378 that ELLIOTT brought in order to purchase one kilogram of cocaine and one-hundred pounds of marijuana from an undercover officer. A search of ELLIOTT’S residence in Windsor, North Carolina, led to the seizure of 135 grams of cocaine, digital scales and a vacuum sealer.

The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico.  These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.

The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. In addition, $2.2 million in U.S. Currency, 127 kilograms of cocaine with a street value of $3.8 million dollars, 41 pounds of crystal methamphetamine with a street value of $650,000, 160 pounds of marijuana with a street value of $170,000, 32 grams of heroin, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.

Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico;  the Internal Revenue Service - Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.

The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV.  Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Craven, Carteret and Pamlico Counties District Attorney’s Office.  District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.

RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today KURT ALLEN BENNETT, 41, of Fort Bragg, North Carolinapled guilty before United States District Judge Terrence W. Boyle to conspiring to steal and convert property belonging to the United States Government, in violation of Title 18, United States Code, Section 371, and two counts of theft and conversion of government property, in violation of Title 18, United States Code, Sections 641.

U.S. Attorney Walker stated, “The theft of sensitive military equipment, such as the laser designator rangefinder in this case, puts our soldiers at even greater risk than they already are given the potential for such equipment to fall into the wrong hands.  We owe a duty to our troops to protect them from this type of greed and criminal misconduct.”

According to the Indictment filed on January 3, 2013, and information presented in open court, at the time of the offense, BENNETT was an Apache helicopter pilot in the United States Army assigned to the 1st Battalion, 3rd Aviation Regiment, at Hunter Army Air Field in Savannah, Georgia.  From October 18, 2008, through October 18, 2009, BENNETT was deployed with his unit to Contingency Operating Base (COB) Speicher in Iraq.  During his deployment, BENNETT stole government property, concealed the stolen items in military connexes, and then shipped the stolen goods back to the United States along with the rest of his unit’s property to Fort Drum, New York.

After BENNETT returned to the United State from Iraq, he traveled to Fort Drum and transported the connex and its contents of stolen items with his personal vehicle back to Georgia.  The value of the stolen items during his Iraq deployment exceeded $100,000.

In 2010, BENNETT was a Chief Warrant Officer 2 in the United States Department of the Army assigned to the 525th Battlefield Surveillance Brigade, which is part of the 18th Airborne Corps, based at Fort Bragg, North Carolina. From November 14, 2010 through July 30, 2011, BENNETT was deployed with the 525th Battlefield Surveillance Brigade to the United States Forward Operating Base - Spin Boldak and then later at Kandahar Air Field, both U.S. military bases located in Afghanistan. During his deployment to Afghanistan, BENNETT was the Brigade Tactical  Operations Officer with designated duties as Officer-in-Charge of a security detail known as the Enabler Security Team which secured movement of staff and service/construction workers throughout the 525th Battlefield Surveillance Brigade’s area of responsibility.

Between December 2010 and July 28, 2011, BENNETT, along with WALKER (already entered his guilty plea) stole more than $1,000,000 worth of government property, concealed the stolen items in military connex, and then shipped the stolen goods back to the United States through Air Force channels.  Some of the items stolen included a lightweight laser designator rangefinder (“LLDR”) valued at over $290,000; a Polaris ATV valued at $11,507; two plasma cutters valued at $10,000, and one cargo trailer valued at $8,944.  An LLDR is used to locate and designate targets for laser-guided munitions.

“This guilty plea by a military officer today highlights the effectiveness of aggressive investigative efforts by the Defense Criminal Investigative Service and our law enforcement partners,” stated Special Agent in Charge John F. Khin, Southeast Field Office, DCIS.  “Chief Warrant Officer Kurt Bennett was held accountable for stealing over $1 million worth of military property while deployed to Afghanistan with the US Army.  His self-serving crimes breached his trust and honor as an Army officer, and discredited the U.S. military services, while undermining our warfighting efforts.  The DCIS takes seriously any corruption and fraud that waste precious resources needed for military operations, especially in these times of reduced Defense budgets.”

Kurt Bennett abused his position of trust and betrayed his fellow service members, dishonoring the very principles he promised to uphold.  The FBI will continue to aggressively investigate those who put their personal greed ahead of the safety of this country’s serviceman and women,” said John Strong, Special Agent in Charge of the Charlotte Division of the FBI.  

BENNETT’s co-conspirator was Sergeant First Class Robert Alan Walker.  Walker’s sentencing hearing is currently set for August, 2013.

At sentencing, BENNETT faces up to 5 years imprisonment for the conspiracy charge and up to 10 years for each of the theft charges.

The criminal investigation of this case was conducted by United States Defense Criminal Investigative Service; the Federal Bureau of Investigation; the United States Department of Army – Criminal Investigation Command, and the Defense Logistics Agency.  Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.

WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior Judge James C. Fox sentenced RON O’NEAL HARGROVE, 37, of Henderson, North Carolina, to 40 months imprisonment and 3 years of supervised release for Retaliating Against a Witness and Aiding and Abetting; and for Possession with the Intent to Distribute a Quantity of Cocaine.

On October 5, 2012, HARGROVE participated in an assault on a federal witness who previously testified against persons convicted of gun crimes before Senior Judge James C. Fox.  HARGROVE and a co-defendant, who was tried and convicted by a jury in May, approached the federal witness at a convenience store in Henderson, NC, accused the witness of  being a “snitch” and proceeded to beat the witness.

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 in federal court today Senior United States District Judge  W. Earl Britt sentenced MELVIN KENNETH CABRAL, 20ofJacksonville, North Carolina, and LYNDON DUNHAM, 24, of Green Cove Springs, Florida, for their respective roles in an armed robbery.  CABRAL was sentencedto 141 months imprisonment followed by 5 years supervised release. DUNHAM was sentenced to 125 months imprisonment followed by 5 years supervised release.  A third defendant, Dallas Holmes, was sentenced on November 1, 2011 for his role in the robbery.

A Federal Grand Jury returned a Superseding Criminal Indictment on October 24, 2012.  On January 14, 2013, CABRAL and DUNHAM each pled guilty to interference with commerce by robbery, in violation of Title 18, United States Code, Section 1951, and to using and carrying a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c).

According to the investigation, on January 9, 2011, CABRAL, DUNHAM, and Holmes robbed the Checkers Drive-In restaurant in Jacksonville, North Carolina as the employees were in the process of closing for the night.  DUNHAM acted as the getaway driver and dropped off CABRAL and Holmes near the restaurant. CABRAL and Holmes, wearing masks and armed with a shotgun, approached an employee at an exterior bathroom door behind the restaurant. The employee was forced into the bathroom at gunpoint, where CABRAL and Holmes tied his hands together before escorting him to a side door to gain entry to the restaurant. Holmes stayed back as CABRAL followed the employee into the restaurant.  Inside, CABRAL brandished the shotgun and directed two employees to a corner of the restaurant.  CABRAL then ordered the assistant manager to open the safe, and threatened to shoot another employee if the assistant manager refused.  The assistant manager opened the safe and handed cash to CABRAL who, along with Holmes, fled the area on foot.

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 Jacksonville Police Department.  Assistant United States Attorney Toby Lathan prosecuted the case.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today ERNEST RICHARD MICHAELSON, 58, of Bridgeport, Connecticut, was sentenced by United States District Judge Terrence W. Boyle to 188 months imprisonment for Bank Robbery, in violation of Title 18, United States Code, Section 2113(a), three years of supervised release, restitution of $6530.00 and a $100 special assessment.

On February 5, 2013 MICHAELSON pled guilty to robbing Capital Bank in Fayetteville, North Carolina on April 20, 2012. MICHAELSON handed a teller a note that read, “I want 550 million dollars now thank you.” MICHAELSON then told the teller, “I have a gun in my back pocket.  I ain’t scared to die.”  The teller did not see a gun but complied and handed MICHAELSON $6,530 who stuffed it in his shirt and fled the bank.

At the time of the April, 2012, offense, MICHAELSON had absconded parole in Bridgeport, Connecticut following his three prior 2000 Connecticut convictions for bank robbery.  

Investigation of this case was conducted by the Federal Bureau of Investigation and the Fayetteville Police Department.  Assistant United States Attorney Thomas B. Murphy prosecuted the case.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today GEORGE MADDISON VENTERS, 52, was sentenced by Federal District Court Judge Terence W. Boyle to 160 months’ imprisonment and lifetime supervised release for distributing child pornography.

     During the course of an investigation of online trafficking in child pornography, law enforcement identified VENTERS as an individual engaged in the distribution and receipt of child pornography.  A search warrant was executed at his Ayden home in October of 2011 by the Pitt County Sheriff’s Office and the North Carolina State Bureau of Investigation, and revealed a massive collection of child pornography, constituting more than 200,000 videos and images of children being sexually abused.  The investigation revealed that VENTERS had been collecting the material for over a decade.

“This defendant is one of the largest collectors of child sex abuse images in the history of our district,” said Walker.  “To collect a virtual library of such material – every item of which depicts a real child suffering unspeakable abuse – shows a callousness that shocks the conscience.  Our office will continue to make aggressive combating of this crime one of our highest priorties.”

Walker also praised the manner in which the investigation and prosecution were conducted. “This is great example of prosecutors and investigators at every level of law enforcement working together towards a great result.  Unfortunately, child exploitation has become a problem too big for any one agency to address effectively.  When local, state and federal law enforcement share ideas, resources, and practical assistance, however, we are extremely effective.  We are fortunate to have such great partners in this important work.”

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 Pitt County Sheriff’s Department, the North Carolina State Bureau of Investigation and the North Carolina Internet Crimes Against Children Task Force, and prosecution was coordinated with the Pitt County District Attorney’s Office and District Attorney Kimberly Robb.  Assistant United States Attorney Jay Exum prosecuted the case for the United States. 

WILMINGTON - United States Attorney Thomas G. Walker announced that KEITH EDWARD FRAZIER, 25, of Washington, North Carolina, was sentenced yesterday by Senior United States District Judge James C. Fox to 148 months in prison and 5 years of supervised release for his role in the March 7, 2011, robbery of the First South Bank branch located at 907 East Fire Tower Road in Greenville, North Carolina.  FRAZIER and his co-defendant, Kevin Frazier, his brother, entered the bank and committed the robbery, at gunpoint, fleeing on foot with $24,058.00.  FRAZIER was also ordered to pay $24,058.00 in restitution.

On October 5, 2012 FRAZIER pled guilty to Armed Bank Robbery, in violation of Title 18, United States Code, Sections 2113(a) and (d), and 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). 

Kevin Frazier was previously sentenced to 130 months in prison and full restitution for his role in the robbery.

Investigation of this case was conducted by the Greenville Police Department.  Assistant United States Attorney John Bennett is prosecuting the case.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III, sentenced JAMES LEE WOODARD, 24, of Jacksonville, North Carolina, to 60 months imprisonment followed by three years supervised release. 

A Federal Grand Jury returned a Criminal Indictment on August 15, 2012 charging WOODARD.  On January 22, 2013, WOODARD pled guilty to conspiring to commit robbery of a business engaged in interstate commerce, in violation of Title 18, United States Code, Section 1951.

According to the investigation, on April 11, 2011, the Sonic Drive-In on Lejeune Boulevard in Jacksonville, North Carolina, was robbed as the night manager and co-defendant, Katie Rivera, and another employee were closing the business for the night.  Two masked men entered the business through the back door.  The robbers proceeded directly to the employee, assaulted him and forced him to the floor.  One suspect told Rivera to place all the money in the backpack.  After collecting the money, the robbers fled the business.  The investigation revealed that Rivera and WOODARD had been dating and she was aware of the plans to rob the restaurant. 

Rivera, 25, of Jacksonville, North Carolina, was charged with conspiring to rob a business engaged in interstate commerce, in October, 2011, in a one-count Criminal Indictment. She pled guilty to that charge on February 21, 2012. At her January 20, 2013, sentencing she received 28 months imprisonment followed by three years supervised release. 

The other individual involved in the robbery was Mathew Brian Goodale, 24, also of Jacksonville, North Carolina, who was charged in a two-count Criminal Indictment with robbery of a business engaged in interstate commerce, in June, 2012.  On August 22, 2012, Goodale pled guilty and was sentenced on January 28, 2013, to 30 months imprisonment followed by three years supervised release.  The Court ordered all the defendants to pay restitution in the amount of $4,200.

Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Police Department.  Assistant United States Attorneys Jane J. Jackson prosecuted the case.

NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today before United States District Judge Louise W. Flanagan, ANTHONY EARL RIVERS, 25, of Dudley, North Carolina changed his plea from “not guilty” to “guilty” on a charge of Possession of a Firearm by a Convicted Felon in and Affecting Commerce, in violation of Title 18, United States Code, Sections 922(g) and 924.

On 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 with 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.

At the sentencing in this case, which is presently scheduled for the August term of court in New Bern, RIVERS faces up to ten years of imprisonment, up to $250,000 in fines, and as much as three years of supervised release.  RIVERS was previously detained as a danger to the community, and will therefore be held in custody until the time of his sentencing.  

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 is prosecuting the case.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III, sentenced JOHN MOORE, 22, to 360 months imprisonment followed by five years supervised release.  Due to MOORE’s extensive and violent criminal history and the violent acts involving this case, the Court varied upward in imposing the sentence.

A Federal Grand Jury returned a three-count Criminal Indictment on December 14, 2010 charging MOORE.  On November 27, 2012, a jury convicted MOORE of carjacking, in violation of Title 18, United States Code, Section 2119, and possession of a firearm in furtherance of a federal crime of violence, in violation of Title 18, United States Code, Section 924(c).  On November 26, 2012, a change of plea hearing was conducted prior to the trial’s commencement when MOORE, pled guilty to the third count of the Indictment which charged felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).

According to evidence presented at trial, on March 1, 2010, MOORE broke into a residence in Evergreen, North Carolina.  The victim arrived home with the victim’s two-year-old grandchild, parking in the driveway.  The victim left the grandchild in the car and approached the residence.  The door frame was broken and the door had been opened.  As the victim entered the residence, MOORE was observed inside the home.  MOORE forced the victim to the ground at gunpoint, putting a gun to the victim’s head, he then dragged the victim around the home by the hair, pulling the victim into a bedroom and duct-taping the victim’s hands and face.  MOORE demanded money and the victim told MOORE the money was in the car.  MOORE dragged the victim outside and they encountered the family dog.  At that point, MOORE shot and killed the dog and dragged the victim back inside the house.  MOORE then threw the victim into a closet and ordered the victim not to leave.  A few minutes later, MOORE opened the door and put the grandchild inside the closet with the victim.  The victim could hear MOORE going room to room.  Before he left, MOORE threatened to kill the victim and the family.  The victim waited for about 30 minutes and then came out and saw that the family car was gone.  MOORE had also stolen cash and other items from the victim’s home.

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 Cumberland County Sheriff’s Office, and the Columbus County Sheriff’s Office.  Assistant United States Attorneys Jane J. Jackson and Toby Lathan prosecuted the case.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today, Chief United States District Judge James C. Dever, III sentenced GREGORY DEVON OBEY, 29, of Smithfield, North Carolina, to 540 months imprisonment followed by 8 years supervised release. 

A Federal Grand Jury returned a Criminal Indictment on August 8, 2012, charging OBEY with one count of Conspiracy to Distribute and Possess with the Intent to Distribute 280 Grams or More of Cocaine Base (Crack) and 5 kilograms or More of Cocaine, in violation of Title 21, United States Code, Section 846, 1 count of Distribution of Cocaine, 1 count of Aiding and Abetting Distribution of Cocaine, and 5 counts of Distribution of 28 Grams or More of Cocaine Base (Crack), in violation of Title 21, United States Code, Section 841.  On January 25, 2013, after a 3 day trial, a jury convicted OBEY of a drug conspiracy and all seven drug distribution counts.

The evidence in the case demonstrated that from at least March 2011, up to and including June 13, 2012, OBEY 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, OBEY made statements immediately after his arrest and identified his sources of supply in the Smithfield area.  All told, as part of the conspiracy, OBEY was held accountable for over 45 kilograms of crack cocaine and 18 kilograms of powder cocaine.  The evidence further showed that from August 30, 2011, up to and including June 13, 2012, OBEY sold cocaine and crack cocaine on 7 different occasions to a confidential informant working for the Smithfield Police Department and Johnston County Sheriff’s Office.  Other sources of information identified OBEY as a drug dealer as well.  Finally, during the trial, evidence was introduced showing that OBEY was involved in threats made to the confidential informant in July 2012.   

Investigation of this case was conducted by the Smithfield Police Department, 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 - United States Attorney Thomas G. Walker announced that in federal court today before United States Magistrate Judge James E. Gates, KITRINA DIANE RHODES, 43, of Magnolia, North Carolina pled guilty to Making Material False Statements, in violation of Title 18, United States Code, Section 1001.

In October of 2012 the United States Secret Service (USSS) was investigating RHODES’s brother in connection with various allegations of credit card fraud and identity theft.  On October 11, 2012 a special agent with the USSS went to RHODES’s residence to locate RHODES’s brother’s laptop computer and other evidence pertaining to the credit card fraud and identity theft investigation.  The special agent asked RHODES to show the USSS where her brother’s belongings were located inside the residence.  RHODES took the USSS to a room used for storage and pointed to a laundry basket containing minimal clothing. 

The investigation revealed that, in fact, RHODES was aware that her brother stayed in a different room in the home which contained various items of clothing and other possessions purchased by RHODES’s brother.  The possessions included a 65-inch flat screen television purchased by RHODES’s brother with a fraudulent credit card.  When questioned, RHODES falsely claimed that she had purchased the television.  RHODES later admitted to lying to the USSS agent about these and other matters.  

At the sentencing in this case, which is presently scheduled for the August 13, 2013 term of court in Greenville, RHODES faces up to five years of imprisonment, up to $250,000 in fines, and as much as three years of supervised release.    

Investigation of this case was conducted by the United States Secret Service with the assistance of the Duplin County Sheriff’s Office.  Assistant United States Attorney William M. Gilmore is prosecuting the case.

GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today ERWIN ANTONIO RIOS, a 19 year old resident of Fayetteville, North Carolina, pled guilty in front of United States Magistrate Judge James E. Gates to possession of a stolen firearm in violation of Title 18, United States Code, Section 922(j).

“Erwin Rios intended to commit violent acts against innocent people in furtherance of his extremist doctrine of hate.  As demonstrated in this case, the multi-agency partnerships which make up our local Joint Terrorism Task Force continue to play a critical role in the day-to-day protection of our communities and our national security,” said John Strong, Special Agent in Charge of the Charlotte Division of the FBI.

On February 7, 2013, a Criminal Complaint was issued that charged RIOS with the above offense.  According to the investigation, RIOS is a self-proclaimed adherent to the extremist views found within Radical Islam.  RIOS desired to travel overseas in order to further what he termed “jihad” and expressly defined as various forms of violence against those he determined to be non-believers – to include U.S. forces.  In order to obtain the funds necessary for such travel, RIOS devised a scheme to commit violent robberies within North Carolina.  He intended to leave no witnesses alive in order to better secure success.  As an initial step, RIOS sought out a firearm and expressed willingness to purchase a stolen hand gun.  The FBI subsequently provided RIOS with the opportunity to purchase a purportedly stolen hand gun through a confidential informant.  RIOS eagerly provided the funds for purchase of a weapon he believed to be stolen.  Immediately afterwards RIOS was taken into custody. 

Investigation of this case was conducted by the Federal Bureau of Investigation.  Assistant United States Attorney, Jason M. Kellhofer, represented the government.

RALEIGH - United States Attorney Thomas G. Walker announced today that Senior United States District Judge W. Earl Britt sentenced WILLIAM NEVILLE DOWE, of Timberlake, North Carolina, for Bribery of a Public Official, in violation of Title 18, United States Code, Section 201(b)(2)(C).  DOWE was sentenced to 36 months’ imprisonment, followed by a three-year term of supervised release. 

The investigation revealed that DOWE worked as a corrections officer at Federal Correctional Institution-Butner, in Butner, North Carolina, from 2006 to September 2012.  Between July 2011 and June 2012, DOWE smuggled contraband, including cigarettes, alcohol, pornographic magazines, cellular phones and marijuana, inside the federal institution and sold the contraband to inmates.  Agents estimate that DOWE received bribes amounting to approximately $15,000. 

The investigation of this case was conducted by the Department of Justice Office of the Inspector General, United States Postal Service, and the North Carolina State Bureau of Investigation.  The case was prosecuted by Assistant United States Attorney Kimberly A. Moore.

RALEIGH - United States Attorney Thomas G. Walker announced today that Senior United States District Judge W. Earl Britt sentenced SHYZER MONQUEZ ORMOND, 22, of Henderson, North Carolina to 70 months imprisonment, followed by 5 years of supervised release for knowingly and intentionally possessing with the intent to distribute a quantity of marijuana, a Schedule I controlled substance, in violation of Title 21, United States Code, Section 841(a)(1), and knowingly and intentionally possessing a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A).

On December 3, 2012, ORMOND pled guilty to the charges listed above.  According to the investigation, on April 13, 2012,  ORMOND was in a car that was stopped by a Henderson Police Officer because a 911 caller had described a man with a gun pointed out of the car window. There were four men inside the car and the responding officer had each man exit the vehicle one at a time.  ORMOND ran from the scene, but the officer caught him.  During the struggle an officer noticed ORMOND had a gun.  A further search of ORMOND discovered 12 prepackaged individual bags of marijuana in his pants pocket.

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 yesterday, May 9, 2013, United States District Judge Terrence W. Boyle sentenced DELANE F. ALSTON, of Rocky Mount, North Carolina, for aiding and assisting in the preparation of false federal income tax returns, in violation of Title 26, United States Code, Section 7206(1).  ALSTON was sentenced to 41 months imprisonment, followed by a one-year term of supervised release.  ALSTON was also ordered to pay restitution in the amount of $121,845.

Mr. Walker stated, “Crooked tax return preparers betray the public trust, wreak havoc on tax administration, and stick honest, law-abiding taxpayers with the bill.” 

The investigation revealed that ALSTON worked as a return preparer at P&A Tax Services, a tax return preparation business, between 2007 through 2011. ALSTON initially prepared returns at a P&A Tax Services office located in Rocky Mount, but she later transferred to the Spring Hope, N.C., office. ALSTON was the manager of the Spring Hope office in 2008, 2009 and 2011.  Between 2009 and 2011, ALSTON prepared and filed over 100 false and fraudulent federal income tax returns for P&A customers, resulting in estimated tax losses to the government in excess of $600,000.  For her services, ALSTON took a cash cut of the unlawful refund amounts generated by the returns she prepared.  The false reporting information on the returns included false dependents, deductions, and credits.  

Charlotte Field Office Special Agent in Charge Jeannine A. Hammett, IRS-Criminal Investigation stated, “IRS- Criminal Investigation is committed to pursuing tax preparers who undermine the federal tax system by assisting in the filing of ‘padded’ and fraudulent refund claims. Preparers like this defendant seek to enrich themselves by essentially stealing from all of us who pay our taxes honestly. This case demonstrates that these criminals should not expect a slap on the wrist; they should expect to be prosecuted and to spend time in federal prison.”

The investigation of this case was conducted by the Internal Revenue Service, Criminal Investigation.  The case was prosecuted by Assistant United States Attorney Adam F. Hulbig.

WASHINGTON, DC - United States Attorney for the Eastern District of North Carolina Thomas G. Walker announced that in federal court on May 8, 2013, a jury returned a $39 million verdict against Tuomey Healthcare System (Tuomey Hospital), located in Sumter, South Carolina for violations of the Stark Law and False Claims Act.

United States Attorney Thomas G. Walker stated, “This case sends a clear message to hospitals that Stark Law and False Claims Act violations will be taken seriously.” 

“This verdict sends a message to those who violate the Stark Law by inappropriately profiting from referrals,” said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Region. “The OIG will continue to work aggressively to eliminate this type of behavior which drives referrals to a particular provider, thereby increasing healthcare costs and eliminating fair competition.” “If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].” 

Testimony and documents showed that the hospital entered into unlawful contracts that paid physicians in compensation amounts far exceeding market value for their services for the hospital.  The Stark Law prohibits hospitals from submitting claims to Medicare for payment based on patient referrals from physicians who have a prohibited financial relationship with the hospital.  Because the jury also found that the hospital violated the False Claims Act, the United States is entitled to seek treble damages plus certain other penalties, as provided for in the False Claims Act.  Both the government and Tuomey are expected to file post-trial motions in the coming weeks, asking for appropriate relief from the Court.

This case was investigated by the Department of Health and Human Service’s Office of Inspector General.  The case was prosecuted by Assistant United States Attorney Norman Acker with the Eastern District of North Carolina and by Tracy Hilmer, Assistant Director, Commercial Litigation Branch of the Justice Department’s Civil Division.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge W. Earl Britt sentenced HYSEN SHERIFI, 29, of Raleigh, North Carolina, to life imprisonment.  SHERIFI’s co-defendants, SHKUMBIN SHERIFI,23, and NEVINE ALY ELSHIEKH, 48, were also sentenced to 36 months and 42 months imprisonment, respectively, both followed by 3 years supervised release.

Mr. Walker stated, “This case serves as an unfortunate reminder that we must remain ever vigilant in our efforts to detect violent extremists who seek to harm our people and property.”

"Today, a convicted terrorist who plotted from his prison cell to behead federal agents and witnesses received the justice he deserved.  As this sentence demonstrates, those who attempt to thwart the judicial process through violence will be prosecuted to the fullest extent of the law.  I thank all those who worked to ensure that Hysen Sherifi’s original terrorist plans against U.S. military personnel and others were derailed, and that his subsequent murder-for-hire plot against those who testified against him was thwarted," said John Carlin, Acting Assistant Attorney General for National Security.

“Hysen Sherifi, while in prison on a terrorism conviction, hatched a sinister murder for hire plot against the witnesses and FBI agents who helped convict him.   The sentences handed down today send a clear message the FBI and our law enforcement partners will not tolerate attempts to thwart the judicial process,” said John Strong, Special Agent in Charge of FBI Charlotte.   

On November 8, 2012, HYSEN SHERIFI (SHERIFI) was found guilty by a jury of all nine counts of the indictment filed against him.  SHERIFI was charged with plotting to kill six witnesses who had testified against him at his 2011 terrorism trial (United States v. Boyd, et al.).  On November 1, 2012, SHKUMBIN SHERIFI and ELSHIEKH, SHERIFI’s co-conspirators, pleaded guilty to one count of conspiracy to commit murder-for-hire, in violation of 18 U.S.C. § 1958, and each testified during the trial of SHERIFI.

After his October 2011 conviction, and while awaiting his sentencing for the same, SHERIFI plotted to kill three FBI agents and three government informants who testified at his terrorism trial.  SHERIFI sought to kill these individuals as revenge for his conviction, to prevent their testimony at co-conspirator, Anes Subasic’s, upcoming trial, and to get a new trial for himself.  SHERIFI recruited his brother, SHKUMBIN SHERIFI, and NEVINE ELSHIEKH, a local school teacher to assist him in his plot.  The SHERIFIS and ELSHIEKH then raised money to pay for the murders.

In January 2012, ELSHIEKH met with a government informant whom she believed to be the middleman for a hit man, in order to discuss the murder plot and possible targets.  ELSHIEKH then relayed that information to SHERIFI during a jail visit.  SHERIFI specified that he wanted each target to be beheaded and photographed after the beheading.  At a second meeting with the  “middleman,” ELSHIEKH confirmed the identity of a government witness to be murdered and made a down payment.  The conspirators then worked together to collect the remaining funds needed to pay for the first murder.  After collecting the funds, the conspirators arranged another series of meetings with the “middleman” to pay for the murder and get photographic confirmation of the first murder.  On January 22, 2012, the conspirators were all arrested shortly after SHKUMBIN SHERIFI accepted pictures from the supposed “middleman,” purporting to show a beheaded government witness.

On February 21, 2012, a nine-count indictment was filed charging SHERIFI, SHKUMBIN SHERIFI, and ELSHIEKH with conspiracy and aiding and abetting in the attempt to use interstate commerce facilities in the commission of murder-for-hire, in violation of 18 U.S.C. §§ 1958(a) and 2; conspiracy and aiding and abetting in the attempt to kill another person, with intent to retaliate against any person for testimony given by a witness in an official proceeding, in violation of 18 U.S.C. §§ 1513(f), 1513(a)(1)(A), and 2; and conspiracy and aiding and abetting in the attempt to kill another person, with intent to prevent the attendance or testimony of any person in an official proceeding, in violation of 18 U.S.C. §§ 1512(k), 1512(a)(1)(A), and 2.  

Investigation of this case was conducted by the Federal Bureau of Investigation Resident Agencies in Raleigh and Wilmington, North Carolina, with the assistance of the New Hanover County Sheriff’s Office. 

The prosecution is being handled by Assistant United States Attorneys J. Frank Bradsher and Brian S. Meyers of the U.S. Attorney’s Office for the Eastern District of North Carolina, and Trial Attorney Matthew F. Blue of the Counterterrorism Section in the Justice Department’s National Security Division.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday JAMAAL McKENZIE, 33, of Canada was sentenced for targeting the elderly in a fraud scam in violation of Title 18, United States Code, Section 371 and Title 18, United States Code, Section 1341 to 78 months of imprisonment followed by three years supervised release.  The Court also ordered restitution of $840,705.00 to be paid.

On March 5, 2008, a Federal Grand Jury returned an Indictment.  On January 30, 2013 McKENZIE pled guilty to one  count of wire fraud and one count of mail fraud.

According to the investigation, from December, 2004, to April, 2007, the defendant, operating in and around the Montreal, Canada, area, devised a scheme in which he called elderly United States citizens, falsely telling them they had won a large prize in a sweepstakes or lottery.  The defendant then convinced the victims to send money in order to receive their prize.

The victims were identified from a lead list that co-defendant Clayton Atkinson, the leader, purchased from a Montreal business.  Characteristics that Atkinson desired of the victims, included ready sources of money, availability during the day to answer the phone and vulnerability due to infirmities of age.  Pre-paid cellular phones were obtained under false names to contact the victims.  When a victim answered the phone fictitious names, titles and company names were used.    

The investigation determined that at least 39 victims in various states, including North Carolina, had been defrauded and the defendants had fraudulently obtained at least $840,705.00.

Investigation of this case was conducted by the Federal Bureau of Investigation; the North Carolina Attorney General’s Office, Elder Fraud Unit; and the Royal Canadian Mounted Police.  Assistant United States Attorney J Gaston B. Williams prosecuted the case.

NEW BERN - United States Attorney Thomas G. Walker announced that today, United States District Judge Louise W. Flanagan sentenced Michael L. Thomas, 54, and his wife, Carolyn S. Thomas, 56, both of Fayetteville, North Carolina, for corruptly obstructing and impeding the due administration of the Internal Revenue laws, in violation of Title 26, United States Code, Section 7212(a).  Michael Thomas was sentenced to 21 months imprisonment, followed by a one-year term of supervised release. Carolyn Thomas was sentenced to 18 months imprisonment, followed by a one-year term of supervised release.  Jointly, the Thomases were ordered to pay restitution in the amount of $255,853.00.

The investigation revealed that in 2005, Michael and Carolyn Thomas began marketing purported “debt elimination” programs for a company based in Columbia, South Carolina, the Capital Consortium Group (CCG).  From approximately 2004 to 2008, CCG perpetrated an $80 million Ponzi scheme.  CCG’s three principals were indicted by a federal grand jury in South Carolina in 2008 and convicted at trial in 2009.  The Thomases were among the most prominent and successful of CCG’s marketers, with upwards of 1,000 customers and high six-figure commissions in 2006 and 2007.  While Michael and Carolyn Thomas were profiting from their association with CCG, they filed a false federal income tax return for tax year 2005 in which they omitted most, if not all, of their CCG commissions.  Then the Thomases stopped filing tax returns altogether until March 2009, when they submitted a false amended 2005 return, a false 2006 return, and a false 2007 return.  Each return significantly underreported the Thomases’ CCG commissions and claimed large tax refunds based on fraudulent Forms 1099-OID.  The Thomases also filed bogus financial instruments with the IRS in purported payment of their tax debts, including false bonds with stated face values ranging from $300 million to $100 billion.

The investigation of this case was conducted by the Internal Revenue Service, Criminal Investigation.  The case was prosecuted by Assistant United States Attorney Adam F. Hulbig.

NEW BERN – United States Attorney Thomas Walker and District Attorney Scott Thomas announced that today in federal court, United States District Judge Louise W. Flanagan sentenced BRANDON JAMAR BELL , 27, of Bayboro, NC to 195 months imprisonment, followed by 5 years of supervised release.  BELL was also ordered to pay $780 in restitution to the Pamlico County Sheriff’s Office.  If he is unable to pay the restitution, he will be required to participate in the Bureau of Prisons’ Inmate Financial Responsibility Program to pay the restitution while he is incarcerated.

Bell was named in an Indictment filed on May 23, 2012, charging him and Don Elbert Lewis, also of Bayboro, with conspiring to distribute and possess with intent to distribute 280 grams or more of cocaine base (crack) and 5 kilograms or more of cocaine between 2004 and March 2012.  On September 11, 2012, Bell pled guilty to that charge.  Lewis was sentenced on January 10, 2012, to 15 years imprisonment followed by 5 years of supervised release for his role in the conspiracy.

According to the investigation, officers with the Pamlico County Sheriff’s Office utilized a confidential informant to purchase cocaine base (crack) from BELL and Lewis on a number of occasions in January through March 2012.  Several of these controlled purchases took place at Lewis’ residence in Bayboro and further investigation revealed that Lewis allowed BELL and other area drug dealers to use his residence to process and sell narcotics in exchange for either drugs or proceeds from drug sales.  In total, over 14 kilograms of cocaine and cocaine base (crack) were either processed or sold from Lewis’ residence.  

Investigation of this case was conducted by the Coastal Narcotics Enforcement Team, a multi-agency task force comprised of agents from the Craven County Sheriff’s Office, Havelock Police Department, Jones County Sheriff’s Office, New Bern Police Department, Pamlico County Sheriff’s Office, River Bend Police Department, State Bureau of Investigation and Trent Woods Police Department.  Special Assistant United States Attorney Augustus Willis represented the government in these matters.  Mr. Willis is a prosecutor with District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties.  District Attorney Scott Thomas has assigned him to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.  Mr. Wills’ position is funded through a grant provided by the Governor’s Crime Commission.

RALEIGH- United States Attorney Thomas G. Walker announced that in federal court yesterday ALAN JOHNSON, 23, was sentenced by United States District Chief Judge Terrence W. Boyle to 608 months imprisonment; 5 years supervised release, and was ordered to pay an $800.00 special assessment. 

On January 8, 2013, JOHNSON was found guilty by a jury of Possession with Intent to Distribute a Quantity of Marijuana and Carrying a Firearm in Furtherance of a Drug Trafficking Crime for an offense that occurred on July 10, 2011.  JOHNSON was also found guilty of Conspiracy to Rob a Business Engaged in Interstate Commerce, Robbery of a Business in Interstate Commerce and Carrying a Firearm in Furtherance of a Crime of Violence for an offense that occurred on July 21, 2011.  He had previously pled guilty to Possession of a Firearm by a Felon for an offense that occurred on August 26, 2011.

On July 10, 2011, JOHNSON and others broke into the home of a man in Wilmington, North Carolina attempting to rob him of drugs and money.  During the course of the home invasion, the victim was pistol whipped when he denied having marijuana.  After relenting and giving the defendants a quantity of marijuana, JOHNSON demanded to know where the rest of the drugs were.  When the victim was adamant that he had given up all the narcotics he had in his possession, JOHNSON shot the victim four times.  The victim was able to run out of his home and escape. 

On July 21, 2011, JOHNSON and two other men entered Able Auto Insurance Agency in Wilmington, North Carolina.  The subjects held employees and customers at gunpoint while demanding the businesses’ money.  After robbing the business of approximately $5,700, the men fled in a car.

During the course of the investigation into these two events, investigators interviewed co-defendants who confessed to their roles in the robberies.  Those statements led law enforcement to a Dollar General store where JOHNSON and his co-defendants bought sunglasses to wear immediately prior to the Able Auto Insurance Agency Robbery.  Upon arrest, JOHNSON was found in possession of a firearm.  He was questioned about the two incidents and confessed to his participation in the robberies.

Investigation of this case was conducted by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Special Assistant United States Attorney Charity Wilson is serving as prosecutor for the government.  

Ms. Wilson is a prosecutor with the New Hanover County District Attorney's Office.  District Attorney Ben David has assigned her to the United States Attorney's Office to prosecute federal Project Safe Neighborhood cases and other violent crime cases.

WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court on Tuesday, before Senior United States District Judge James C. Fox, MATTHEW WILLIAMS, of Louisburg, NC, was sentenced to a 42 month term of imprisonment, followed by 3 years of supervised release, on charges of Conspiracy to Make Counterfeit Currency, in violation of Title 18, United States Code, Section 371, Possession of Counterfeit Currency, in violation of Title 18, United States Code, Section 472, and Manufacturing Counterfeit Currency, in violation Title 18, United States Code, Section 471.  WILLIAMS was also ordered to pay a $2,000.00 fine.

In November 2012 WILLIAMS had pleaded guilty to an indictment that charged him with using a high quality scanner at his residence in Louisburg, NC, to manufacture and distribute counterfeit $5, $10, and $20 dollar bills in July of 2010.  WILLIAMS sold counterfeit currency in exchange for genuine currency, usually at a price of $300.00 for $1,000.00 in counterfeit currency.  WILLIAMS also instructed others on how to manufacture counterfeit currency, and he distributed counterfeit currency to other people, teaching them how and where to successfully pass counterfeit currency. 

Investigation of this case was conducted by the United States Secret Service and the Franklin County Sheriff’s Office.  Assistant United States Attorney Evan Rikhye represented the United States.

WILMINGTON - United States Attorney Thomas G. Walker announced today that, WAYNEMON DEMOUNT BULLOCK, 25, of Henderson, North Carolina, was convicted by a federal jury of retaliating against a federal witness in violation of Title 18, United States Code, Section 1513(b)(1).

On October 5, 2012, BULLOCK participated in an assault on a federal witness who 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.  BULLOCK faces a maximum of 20 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 and the Henderson Police Department. Assistant United States Attorney, S. Katherine Burnette prosecuted the case.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday, United States District Judge Terrence Boyle sentenced WINSTON ANTONIO EVANS, 29, of Smithfield, North Carolina, to 123 months imprisonment followed by 6 years supervised release. 

A Federal Grand Jury returned a Criminal Indictment on August 29, 2012, charging EVANS with three counts of Distribution of Heroin, one count of Distribution of Heroin Within 1,000 Feet of a School, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.  On January 3, 2013, EVANS pleaded guilty to the following counts: Distribution of Heroin Within 1,000 Feet of a School, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.

According to the evidence presented in Court, EVANS engaged in a series of controlled buys from a confidential informant from February 22, 2012, up to and including March 15, 2012.  During these controlled buys, EVANS sold quantities of heroin to the confidential informant.  One of the controlled buys took place on the school grounds of Smithfield-Selma High School where EVANS was a teacher’s assistant.  In addition, during one of the controlled buys, EVANS also sold a firearm to the informant.  Finally, the investigation revealed that EVANS was receiving shipped parcels containing heroin from other co-conspirators for distribution.  All told, EVANS was held responsible for trafficking in over 500 grams of heroin.

Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the Johnston County Sheriff=s Office.  Assistant United States Attorney, Rudy E. Renfer, represented the United States in this matter.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday United States District Judge Terrence W. Boyle sentenced SAMUEL LEE COOPER, JR., 36, to 76 months imprisonment followed by five years supervised release.  On July 11, 2012, COOPER pled guilty to possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c), and possessing a machinegun, in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2). 

The June 6, 2012, Superseding Indictment, alleges that the offenses took place on October 4, 2010.  According to the evidence presented in court, COOPER wasa drug dealer operating in Rocky Mount, North Carolina.  When law enforcement went to COOPER’S residence they noticed marijuana in plain view.  A search warrant was obtained and officers found a Norinco, model SKS, 7.62 fully automatic rifle along with ammunition for the rifle and a Smith and Wesson .22 caliber Ruger revolver.    

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 Rocky Mount Police Department.  Assistant United States Attorney Jane J. Jackson is prosecuting the case.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday, United States District Judge Terrence W. Boyle sentenced ALMONMONICK BULLOCK, 37, of Henderson, North Carolina, ANGELA WILKERSON, 37, of Raleigh, North Carolina, and PATRICK COOPER, 39, of Kittrell, North Carolina, for their respective roles in a heroin trafficking conspiracy.  BULLOCK was sentenced to 96 months imprisonment followed by 3 years of supervised release.  WILKERSON was sentenced to 70 months imprisonment followed by 5 years supervised release.  COOPER was sentenced to 63 months imprisonment followed by 3 years of supervised release. 

A Federal Grand Jury returned a Criminal Indictment on September 25, 2012, charging BULLOCK, WILKERSON, and COOPER with conspiring to distribute and possess with the intent to distribute more than 1 kilogram of heroin.  On December 13, 2012, BULLOCK and WILKERSON pleaded guilty to the charge in the indictment while COOPER pleaded guilty to conspiring to distribute and possess with the intent to distribute a quantity of heroin. 

According to the evidence presented in Court, WILKERSON and BULLOCK would make trips to New Jersey to pick up large quantities of heroin to bring back to Vance County in North Carolina for re-distribution.  COOPER used his residence to store and package some of the heroin while BULLOCK and WILKERSON were responsible for re-distributing the heroin in Vance and Wake counties.  All told, the conspiracy was responsible for trafficking more than 1 kilogram of heroin in the Eastern District of North Carolina.

Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Henderson Police Department, the Raleigh Police Department and the Maryland State Police.  Assistant United States Attorney, Rudy E. Renfer, represented the United States in this matter. 

WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced LIONEL THOMAS EASTERLING, 30, of Greenville, North Carolina, to 84 months imprisonment followed by 3 years supervised release.

On January 2, 2013, EASTERLING pled guilty to an Indictment charging him with two counts of possession of a firearm by a convicted felon.

The investigation began when the Greenville Regional Drug Task Force used an informant to make two controlled purchases of firearms from EASTERLING in Greenville, N.C.  On June 12, 2012, EASTERLING sold three stolen handguns to the informant and on June 20, 2012, EASTERLING sold an AR-15 assault rifle to the informant.  EASTERLING was prohibited from possessing firearms and due to his prior felony convictions for selling cocaine.

The investigation of this case was conducted by the Greenville Regional Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry.  Mr. Perry is a prosecutor with the Pitt County District Attorney's Office. Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney's Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. The assignment to the United States Attorney's Office has 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 ROBERT BRIAN MINISH, 57, of Henderson, North Carolina, pled guilty before United States District Judge Terrence W. Boyle to theft of property belonging to the United States, in violation of Title 18, United States Code, Section 641, and to making false statements, in violation of Title 18, United States Code, Section 1001.  

According to the Criminal Information filed on March 5, 2013, and information provided in open court today, MINISH was an employee of Law Enforcement Support Services (LESS), a division of the North Carolina Department of Public Safety.  Among its functions, LESS facilitated the transfer of United States Department of Defense (DoD) surplus property to state and local law enforcement agencies to use in law enforcement activities. Working from the position of Firearms Program Manager, MINISH was responsible for coordinating the transfer of DoD weapons, including firearms, to law enforcement agencies.

In 2009, investigators reviewed LESS records as part of an audit.  The audit revealed that MINISH failed to maintain records as required for DoD firearms loaned to law enforcement agencies. Dozens of firearms loaned to North Carolina law enforcement agencies through LESS were presently unaccounted for in LESS records.  LESS records also reflected that hundreds of firearms were being improperly stored at LESS headquarters in Raleigh.  LESS was not itself a law enforcement agency and was not authorized to possess weapons.   

During interviews with investigators, MINISH made numerous false statements regarding the firearms identified by the audit as being unaccounted for.  MINISH claimed that no firearms were presently stored at LESS headquarters, nor had firearms ever been stored there.  At the time, MINISH was aware that hundreds of firearms, including automatic firearms, were improperly stored at LESS.  MINISH was also aware that several of the firearms were in his own personal possession. 

MINISH mislead investigators with information attributing some of the firearms to certain North Carolina law enforcement agencies.  In the ensuing weeks, investigators traveled throughout the state to these law enforcement agencies in a futile effort to account for the firearms.  Some law enforcement agencies reported having previously returned missing firearms to MINISH personally.

On May 12, 2009, MINISH notified investigators that some of the questioned firearms were in fact present at LESS headquarters.  MINISH initially claimed that the guns and been returned by several law enforcement agencies days earlier.  After investigators determined this to be false, MINISH admitted that the guns had been there for months.

On June 16, 2010, LESS received a United States Postal Service package that was addressed to MINISH and was purportedly mailed by the Alamance County Sheriff’s Office.  The package was opened and found to contain six of the missing firearms identified by the audit.  Investigators determined that the package had not been sent by the Alamance County Sheriff’s Office, but had instead been mailed from a Post Office in Mebane, NC.  MINISH eventually admitted that he had been in possession of the firearms, and that he mailed the package to LESS in an attempt to deceive investigators.

Information was developed that MINISH stole additional DoD property that had been, or was to be, loaned to law enforcement agencies through LESS, including: gun safes; tool bins; spectacle kits/goggles; M49 spotting scopes; encrypted radios; Aimpoint rifle scopes; and gun cleaning kits.  EBay records associated with an account maintained by MINISH were obtained for the period between August 2008, and September 2010.  The records reflected that MINISH sold stolen DoD property on eBay having an acquisition value in excess of $30,000. 

At sentencing set for the Court’s August 5th, 2013, term of Court, MINISH faces up to 15 years imprisonment followed by up to three years supervised release and a fine of up to $500,000. 

Investigation of this case was conducted by the United States Department of Defense – Defense Logistics Agency, Office of Inspector General; the North Carolina State Bureau of Investigation; the Naval Criminal Investigative Service; and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  Assistant United States Attorney Toby Lathan prosecuted the case.

WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today, WILLIAM WALTER BARKER 44, of Kinston, North Carolina pled guilty before Senior United States District Judge James C. Fox to 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 over 4,000 images and 100 videos of child pornography.

BARKER faces a sentence of not less than 5 years imprisonment nor more than 20 years imprisonment along with a fine up to $250,000 and up to a lifetime of supervised release at sentencing.

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.

Investigation of this case was conducted by the North Carolina State Bureau of Investigation and the Freemont Police Department. Assistant United States Attorney Ethan A. Ontjes prosecuted the case.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III sentenced CARNELL RANDALL WHITE, 24, of Wilmington, North Carolina, to 120 months imprisonment followed by 5 years supervised release.

On November 14, 2012, WHITE pled guilty to possession with the intent to distribute and distribution of 100 grams or more of heroin.

During the course of the investigation, the Wilmington Police Department made three undercover purchases of heroin from WHITE between September 2011 and February 2012.

On March 26, 2012, the Wilmington Police Department stopped a rental car driven by Kathy Mishoe with Linwood Nelson as a passenger.  The vehicle was returning from New Jersey to Wilmington North Carolina.  Detectives found 7,500 bags of heroin which were to be delivered to WHITE and Kenneth Harris for distribution.

In addition, law enforcement uncovered that Nelson and Mishoe had previously transported heroin for WHITE and others to distribute in the New Hanover County area.  Between November 2011 and February 2012 the group imported more than 16,500 bags of heroin from New Jersey.

Furthermore the investigation revealed that WHITE was responsible for distributing more than 1.5 kilograms of heroin into Eastern North Carolina.

This case was brought as a part of an Organized Crime Drug Enforcement Task Force (OCDETF) Operation entitled WoofPack, investigating importers and multi-level distributors of heroin, cocaine, crack cocaine and gang activity associated with this distribution. So far 33 persons have been sentenced in federal court as a part of this operation.                   

Investigation of this OCDETF case is being conducted by the Federal Bureau of Investigations (Safe Streets Task Force); the Bureau of Alcohol, Tobacco, and Firearms and Explosives; the North Carolina State Bureau of Investigations; the Wilmington Police Department; the New Hanover County Sheriff’s Office and the Greenville Police Department. Special Assistant United States Attorney Timothy Severo represents the government. Mr. Severo is a prosecutor with the New Hanover District Attorney’s Office. District Attorney Ben David has assigned him to the United States Attorney’s office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III sentenced MANUEL RICARDO REYES-FLORES, 65, of Graham, North Carolina to 150 months of imprisonment followed by 5 years supervised release and a $5,000 fine, RICARDO SALVADOR FLORES-CARRASCO, 40, OF Mesa, Arizona, to 102 months of imprisonment followed by 5 years supervised release, and BOBBY KEMONI LATRAE WALLACE, 26, of Grifton, North Carolina, to 36 months of imprisonment followed by 3 years of supervised release.  REYES-FLORES and FLORES-CARRASCO pled guilty to conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine on December 6, 2012 and WALLACE pled guilty to conspiracy to distribute and possess with the intent to distribute cocaine on December 10, 2012.

REYES-FLORES and FLORES-CARRASCO were arrested in Greenville, North Carolina, on April 1, 2012, after federal, state and local law enforcement agents seized over 5 kilograms of methamphetamine that they were transporting from Arizona.  Additional investigation revealed that REYES-FLORES was also responsible for trafficking an additional 283 grams of methamphetamine, 181 kilograms of marijuana and 5 kilograms of cocaine in North Carolina.

WALLACE was arrested in Greenville, North Carolina, on April 15, 2010, after the Greenville Regional Drug Task Force made 5 controlled purchases of approximately 290 grams of cocaine from WALLACE in March and April 2010.

The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico.  These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico. 

The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. In addition, $1.5 million in U.S. Currency, 127 kilograms of cocaine with a street value of $3.8 million dollars, 41 pounds of crystal methamphetamine with a street value of $650,000, 160 pounds of marijuana with a street value of $170,000, 32 grams of heroin, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.

Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico;  the Internal Revenue Service - Criminal Investigation Division; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.

The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV.  Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Mr. Willis is a prosecutor with the Craven, Carteret and Pamlico Counties District Attorney’s Office.  District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today before Chief United States District Judge James C. Dever, III, JEFFREY SCOTT TAGGART, of Wilmington, NC, was sentenced to a 36 month term of imprisonment, followed by 3 years of supervised release, on charges of Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 1349, and Subscribing to a False Income Tax Return, in violation of Title 26, United States Code, Section 7206(1).  TAGGART was also ordered to pay $3,060.896.77 to 12 banks and lenders who were victims of the fraud.

With respect to the charge of Conspiracy to Commit Mail, Wire, and Bank Fraud, the indictment alleged that TAGGART, in his capacity as a North Carolina attorney, prepared false HUD-1 settlement statements that he sent to banks and lenders on more than 50 loan transactions tied to the scheme.  TAGGART falsified the HUD-1 settlement statements in various ways, including the falsification of the existence and degree of the buyer’s down payment, the existence and degree of financing, the existence or nonexistence of a buyer or seller, the actual contract price for the property, and the true recipient of all loan proceeds.  TAGGART also participated in the scheme by fronting money from his firm’s escrow account to assist borrowers to appear qualified for loans that he closed.

As a result of the scheme, banks and lenders issued loans to the conspirators in the amount of approximately $15.8 million, which resulted in $3,060.896.77 in actual losses to the banks and lenders.

With respect to the Charge of Subscribing to a False Income Tax Return, the indictment alleged that TAGGART falsely listed his taxable income as $80,486, when in fact, his taxable income was $271,003.

Investigation of this case was conducted by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore represented the United States.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday DENNIS RAY HOWARD, 41, of Wilson, North Carolina was sentenced by Chief United States District Judge James C. Dever III to life imprisonment, followed by 60 months of supervised release. 

On October 17, 2012, HOWARD was found guilty by a federal jury of 11 counts of narcotics violations.  HOWARD was convicted of one count of Conspiracy to Distribute and Possess With the Intent to Distribute 100 Grams or More of a Mixture or a Substance Containing a Detectable Amount of Phencyclidine, in violation of Title 21, United States Code, Section 846, seven counts of Distribution of a Quantity of Phencyclidine, in violation of Title 21, United States Code Sections 841(a)(1), one count of Distribution of a Quantity of Phencyclidine and Aiding and Abetting in violation of Title 21, United States Code Sections 841(a)(1) and Title 18 United States Code Section 2 and one count of Possession With Intent to Distribute a Quantity of Phencyclidine in violation of Title 21, United States Code 841(a)(1) and one count of Possession of a Firearm in Furtherance of a Drug Trafficking Offense in violation of Title 18, United States Code Section 924(c).

According to the evidence presented at trial, from September 20, 2010 until October 13, 2010, six controlled purchases of Phencyclidine (PCP) from HOWARD from a residence in Wilson. Again on March 15, 2011 law enforcement conducted a controlled purchase of PCP from HOWARD and on April 7, 2011 investigators conducted a final controlled purchase of PCP from HOWARD.  On May 13, 2011, law enforcement officers conducted a traffic stop of HOWARD’S vehicle and noticed an odor consistent with PCP emanating from the vehicle.  Both HOWARD and the vehicle were searched uncovering a vial containing a residue amount of PCP.  Based on information discovered during the investigation of HOWARD’S drug distribution activities, his residence was also searched revealing a .25 caliber pistol and ammunition.  Testimony at trial showed that HOWARD was responsible for distributing over 500 grams of PCP in the Wilson are during the time frame of the conspiracy.

Investigation of this case was conducted by Wilson Police Department and the Drug Enforcement Administration. Assistant United States Attorney Jennifer E. Wells prosecuted the case.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court Thursday, United States District Judge Terrence W. Boyle sentenced MICHAEL DEAN JONES, 42ofMaxton, North Carolinato 120 months imprisonment followed by 4 years supervised release. 

A Federal Grand Jury returned a Criminal Indictment on February 15, 2012.  On October 11, 2012, JONES pleaded guilty to Distribution of 50 Grams or More of Cocaine Base (Crack), in violation of Title 21, United States Code, Section 841.

According to the evidence presented in Court, on April 8, 2010, JONES sold 54.9 grams of powder cocaine to a confidential informant.  On June 9, 2010, JONES again sold crack cocaine to a confidential informant with a weight of about 53.7 grams.  All told, JONES was held responsible for distributing over 100 grams of cocaine and over 80 grams of crack cocaine.

Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the North Carolina State Bureau of Investigation, and the Robeson County Sheriff’s Office.  Assistant United States Attorney Rudy E. Renfer prosecuted the case for the government.