Eastern District of North Carolina
Press releases recorded for this federal judicial district.
Southern Pines, North Carolina, Tobacco Warehouseman/broker SentencedRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III, sentenced JESSE RAY “TOMMY” FAULKNER, II, 54, to a total of 66 months imprisonment followed by 3 years supervised release. Restitution of $13,261,662.40 was also imposed.
U.S. Attorney Thomas G. Walker stated, “Today’s sentence reflects the harm committed on our community as a result of this massive multi-million dollar fraud scheme and should serve as a deterrent for tobacco brokers, warehousemen, and receiving station operators who are contemplating helping farmers sell hidden tobacco and file false claims.”
On October 30, 2012, a two-count Criminal Information was filed charging FAULKNER with conspiring to make false statements, to make material false statements, to commit mail and wire fraud and to structure financial transactions, all in violation of Title 18, United States Code, Section 371; and conspiracy to commit money laundering in violation of Title 18, United States Code, Section 1956(h). On December 10, 2012, FAULKNER pled guilty to the charges.
According to the Criminal Information and information provided in open court, FAULKNER, was an agent for Phillip Morris USA Inc., and operated as an independent tobacco broker. FAULKNER also operated independent tobacco receiving stations in Wilson, North Carolina. Through his tobacco receiving stations, FAULKNER bought and sold tobacco from farmers with cash or in nominee names to facilitate the farmers in hiding their production. The co-conspiring farmers would not report the sales of the “hidden” tobacco in connection with their federal crop insurance claims, thereby being paid for losses they did not suffer.
FAULKNER then resold the “hidden” tobacco to Phillip Morris USA. During the course of the conspiracy, FAULKNER sold or caused to be sold $5,181,816.90 worth of “hidden” flue-cured tobacco in North Carolina. During the course of the conspiracy, FAULKNER sold or caused to be sold $8,097,429.13 worth of “hidden” burley tobacco in Kentucky.
“This sentence will deter other agricultural businessmen from engaging in illegal business practices which facilitate fraud in the federal crop insurance program and other USDA programs. USDA-OIG is committed to preserving the integrity of USDA programs and safe guarding our tax dollars,” stated Karen Citizen-Wilcox, Special Agent in Charge of the Southeast Region, USDA-OIG-Investigations.
Special Agent in Charge Jeannine A. Hammett, IRS CI stated, "IRS - CI uses information received through the Bank Secrecy Act to ensure criminals do not use US financial systems to legitimize their illegal profits. Currency report information provides a paper trail or roadmap for investigations of financial crimes and illegal activities, including tax evasion, embezzlement, and money laundering."
Investigation of this case was conducted by the United States Department of Agriculture (USDA) - Office of Inspector General - Investigations, USDA - Risk Management Agency - Special Investigations Branch, and the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Banumathi Rangarajan is prosecuting the case.
Rocky Mount Man Sentenced for Drug TraffickingRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today QUENTIN EARL BATTLE, 39, of Rocky Mount, North Carolina was sentenced by Chief United States District Judge James C. Dever III to 420 months imprisonment, followed by 5 years of supervised release.
On August 10, 2012, BATTLE pled guilty to (1) conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine, 280 grams or more of cocaine base (crack), and a quantity of heroin in violation of Title 21 United States Code, Section 846 and (2) money laundering in violation of Title 18 United States Code, Section 1956.
The investigation revealed that BATTLE was a major distributor of cocaine and cocaine base (crack) in Nash County, North Carolina since the late 1990s. Numerous cooperating defendants identified BATTLE as their source of supply for cocaine and crack. On April 19, 2012, a search warrant was executed at BATTLE’S residence, where paperwork was found for two storage units in Rocky Mount. A second search warrant was executed at the storage units, resulting in the seizure of three assault rifles, ammunition, body armor, and $440,015 in United States currency. On that same day, BATTLE was arrested following a traffic stop, and officers found in his vehicle a loaded .40 caliber handgun and $3,500 in United States currency.
Investigation of this case was conducted by the Drug Enforcement Administration and the Rocky Mount Police Department. Special Assistant United States Attorney Nathan A. Huff and Assistant U.S. Attorney Eric Goulian represented the government in this case.
Fayetteville Man Sentenced for Drug DistributionRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III sentenced MAJOR RAY BROWN, 30, to 132 months imprisonment, followed by 3 years supervised release.
A Federal Grand Jury returned a six-count Criminal Indictment on April 24, 2012. On December 10, 2012, BROWN pled guilty to Distribution of a Quantity of Cocaine Base (Crack), in violation of Title 21, United States Code, Section 841(a), and to Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(iii).
According to the investigation, BROWN trafficked crack/cocaine and firearms in Fayetteville from at least August 2010 to December 2011. On several occasions within this period of time, BROWN sold crack/cocaine and firearms to confidential informants working under the direction of law enforcement.
The first controlled purchase of a firearm and crack/cocaine from BROWN was conducted on August 9, 2010, less than one week after BROWN attended a Project Safe Neighborhoods (PSN) “Call-In” in Fayetteville. At the Call-In, BROWN and other felony probationers were educated on federal firearms laws and warned of the consequences of their actions should they continue to engage in crimes involving drugs, firearms, or violence. Offenders in attendance were also encouraged to become productive members of their communities, and were provided with information regarding job training and educational opportunities, housing, and public assistance.
This case was part of the Project Safe Neighborhoods initiative, which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fayetteville Police Department, and the Cumberland County Sheriff’s Office. Assistant United States Attorney Toby Lathan represented the government.
Staff Sergeant Pleads Guilty in Army Finance Office MisconductRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today JASON BEGANY, 31, of Erwin, North Carolina, pled guilty before United States District Judge Terrence W. Boyle to converting property of another that came into his possession as a result of his employment with a department of the United States, and aiding and abetting another, all in violation of Title 18, United States Code, Sections 654 and 2.
United States Attorney Thomas G. Walker reflected, “Public corruption such as this defendant’s criminal conduct undermine our nation’s reconstruction efforts overseas and dishonors the sacrifice our military makes every day.”
According to the Criminal Information filed on February 5, 2013, and information provided in open court today, BEGANY, a Staff Sergeant in the United States Army and deployed with the 82nd Finance Battalion to Kabul, Afghanistan, was the Non-Commissioned Officer in Charge of the Camp Eggers Finance Office. Working in his position in the Finance Office, he, along with Sergeants Edwin Vando and Juan Lamboy-Rivera (both of whom previously pled guilty to the same offense), were responsible for ensuring that authorized contract payments were made to vendors, such as Abdul Wasi Faqiri Company, Ltd. who provided a variety of military apparel and equipment.
In May, 2009, a representative from Abdul Wasi Faqiri Company, Ltd., contacted the Camp Eggers Finance Office regarding a possible overpayment of $1,297,959.31. BEGANY, Vando, Lamboy-Rivera, and an interpreter were tasked with reviewing the contract to determine if an overpayment had been made. BEGANY, Vando, Lamboy-Rivera and the interpreter determined that there was not an overpayment but thereafter devised a plan to steal the money. BEGANY, through the interpreter, contacted the vendor, claimed that an overpayment had been made, and directed the vendor to wire the money to a specific bank account. The bank account was set up by the interpreter to facilitate the theft. The interpreter then withdrew approximately $500,000 from the account, met Vando at the gates to Camp Eggers, and gave approximately $400,000 to Vando. Vando concealed the money in a backpack and gave the money to BEGANY. BEGANY¸ Vando and Lamboy-Rivera shared the money. They purchased rugs and shipped some of the rugs to the United States.
BEGANY’s commanding officer became aware of the theft and reported it to authorities. An investigation ensued and on June 13, 2009, law enforcement recovered $297,680 from BEGANY. Law enforcement also recovered money orders from Vando and Lamboy-Rivera as well as the rugs purchased with the money. In addition, law enforcement recovered $897,960 from the interpreter.
At sentencing set for the Court’s June 17th, 2013, term of Court, BEGANY faces up to 10 years imprisonment followed by up to three years supervised release and a fine of up to $250,000.
Vando and Lamboy-Rivera have also been charged and are currently awaiting sentencing.
Defense Criminal Investigative Service (DCIS) Special Agent in Charge John F. Khin, Southeast Field Office, commented, "By giving in to greed and dishonesty, SSG Begany tarnished the professional reputation and prestige of the US Armed Forces, while taking advantage of the very Afghan citizens whose trust we were trying to gain. Resulting from a lengthy and exhaustive investigation, this guilty plea reinforces that DCIS agents' relentless pursuit of violators, through multiple resources and partnerships, has proven highly effective in recovering precious American taxpayer dollars stolen or diverted through fraud and corruption."
Investigation of this case was conducted by the Defense Criminal Investigative Service; the United States Department of Army - Criminal Investigation Command, Major Procurement Fraud Unit; and the Federal Bureau of Investigation. Assistant United States Attorney Banumathi Rangarajan prosecuted the case.
Former Raleigh Real Estate Developer and Entrepreneur Pleads Guilty to Conspiring to Defraud Investors and BanksRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announces that today in federal court former real estate developer JAMES THOMAS WEBB, 52 of Miami, pled guilty to Conspiracy to Commit Bank and Wire Fraud before Chief United States District Judge James C. Dever, III.
The 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 charges 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, Amy Robinson, to falsify closing statements associated with the loan transactions. The Indictment charges 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, Larry Max McDaniel, and his associate, Jackie Gale Weaver, to falsify appraisal reports that were given to banks and lenders in connection with investor loans. The appraisal reports are alleged to have 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 alleged 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.
Based upon WEBB’s statements and representations to investors, various individuals collectively invested approximately $10 Million dollars with WEBB and his companies. Additionally, banks and lenders disbursed approximately $20 million 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.
At the sentencing in this case, which the court has presently scheduled for July of 2013, WEBB faces a maximum term of imprisonment of 30 years and $1 Million in fines. WEBB may also be ordered to make restitution to the victims of the conspiracy.
As noted above, 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, 70, 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. The sentencings in the cases of ROBINSON, WEAVER, and MCDANIEL have also been scheduled for June of 2013.
If you believe that you are a victim in connection with the case against WEBB, ROBINSON, WEAVER, or MCDANIEL, please contact the Victim/Witness Coordinator for the United States Attorney’s Office at (919) 856-4003.
Investigation of this case was conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, the United States Department of Housing and Urban Development Office of the Inspector General, and the Federal Deposit Insurance Corporation Office of the Inspector General, with the assistance of the North Carolina Appraisal Board. Assistant United States Attorney William M. Gilmore is prosecuting the case.
Fuquay-Varina Man Sentenced for Bank RobberyRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today VAN DAVID KALCEVIC, 22, of Fuquay-Varina, North Carolina was sentenced by Senior United States District Judge Malcolm J. Howard to 180 months imprisonment, followed by 5 years of supervised release.
On October 15, 2012, KALCEVIC pled guilty to bank robbery by force and violence, and by intimidation, in violation of Title 18, United States Code, Section 2113(a) and (d), and to knowingly using and carrying a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Sections 924(c)(1)(A) and Section 924(e)(2)(B).
According to the investigation, on March 29, 2012, KALCEVIC robbed the Branch Banking and Trust, located at 1130 Bear Creek Commons Drive in Apex, North Carolina of approximately $4,422.00.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Federal Bureau of Investigation, North Carolina State Highway Patrol, Apex Police Department and the Raleigh Police Department. Assistant United States Attorney S. Katherine Burnette prosecuted the case.
Five Sentenced in Dog Fighting RingRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court yesterday, Judge Louise W. Flanagan sentenced JAMES MATTHEW BLACKMAN, 43, to 3 years probation and 30 days intermittent confinement, RICKY DIAL, 55, to 8 months imprisonment followed by 2 years of supervised release, and JIMMY JACOBS, 40, to 29 months imprisonment followed by 3 years supervised release, all of these men are from Maxton, North Carolina. Also sentenced were FRANK JACOBS, 69, of Laurinburg, North Carolina, to 29 months imprisonment followed by 3 years supervised release and TONY HARRIS, 35, of Lamar, South Carolina to 21 months imprisonment and 3 years of supervised release.All these men were sentenced for their roles in a dog fighting ring in Robeson County, North Carolina.
United States Attorney Walker stated, “Word must go out. Dog fighting, a particularly cruel crime, will not be tolerated. This prosecution stands for our commitment to pursue and prosecute those engaged in such heinous acts.”
According to the Indictment, the members of the conspiracy used various manners and means to accomplish the conspiracy, including, but not limited to, the following: trained and bred pit bulls for participation in dog fighting ventures; traveled in interstate commerce to other locations to participate in dog fighting ventures; sponsored and fought dogs that had traveled in interstate commerce in animal fighting ventures; placed and accepted bets on individual dog fights; collected entrance fees to dog fights and secured locations of dog fighting ventures; provided property in secluded locations and constructed pits to host dog fighting ventures; and offered prize money for winning participant in dog fighting venture.
Investigation of this case was conducted by the North Carolina Alcohol Law Enforcement, Scotland County Sheriff’s Office, and the Federal Bureau of Investigation’s Raleigh – Durham Safe Streets Task Force consisting of the Raleigh Police Department, Durham Police Department, Durham County Sheriff’s Office, Cary Police Department, North Carolina State Highway Patrol, Greenville Police Department, Garner Police Department and North Carolina Probation and Parole. Assistant United States Attorney Denise Walker prosecuted the case.
Erwin Man Sentenced for Possession of A Firearm by A Convicted FelonRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday LESLIE AARON MCKEITHAN, 29, of Erwin, North Carolina was sentenced by Chief United States District Judge James C. Dever, III to 120 months imprisonment, followed by three years of supervised release.
On October 29, 2012, MCKEITHAN pled guilty to Possession of a Firearm by a Felon in violation of Title 18, United States Code, Section 922(g) and Title 18, United States Code, Section 924(a)(2).
According to the investigation, on November 26, 2011, Dunn Police Department Officers were dispatched to the Wal-Mart parking lot in reference to a domestic assault. Upon arrival witnesses informed officers they observed MCKEITHAN and a female arguing. During the course of the argument, MCKEITHAN struck the female several times and took her purse. When a witness attempted to help the female, MCKEITHAN pulled a firearm from his waist band and threatened the witness. MCKEITHAN then walked away and put the firearm and the purse in the victim’s car. The female gave police consent to search her car and officers seized a .25 caliber semi-automatic firearm. MCKEITHAN was placed under arrest and acknowledged the firearm belonged to him. MCKEITHAN was previously convicted of a violent felony in State court.
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 Dunn Police Department, Harnett County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant United States Attorney Jennifer E. Wells prosecuted the case.
Durham Man Sentenced for Bank RobberyRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today RAEFORD EDWARD NUNN, 44, of Durham, North Carolina was sentenced by United States District Judge Terrence W. Boyle to 57 months imprisonment, followed by three years of supervised release. The 57 months sentence was at the top of the sentencing guidelines range.
On October 22, 2012, NUNN pled guilty to bank robbery by force or violence in violation of Title 18, United States Code, Section 2113(a).
According to the investigation, on October 20, 2010, NUNN robbed the Capital Bank located in Wake Forest, North Carolina of approximately $1,260.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Wake Forest Police Department. Assistant United States Attorney S. Katherine Burnette prosecuted the case.
Robeson County Man Convicted in Drug ConspiracyRead the Press Release
RALEIGH - United States Attorney Thomas W. Walker announced that in federal court today Chief District Court Judge James C. Dever sentenced KENDALL LADELL BLUE, 34, of Red Springs, North Carolina, to 21 years’ imprisonment for his role in a drug trafficking conspiracy.
On October 25, 2011, a grand jury in the Eastern District of North Carolina issued an indictment charging BLUE with Conspiring to Possess with Intent to Distribute and Distribute 28 Grams or More of Crack Cocaine, several counts of Distributing Crack Cocaine and other related charges. On August 8, 2012, after a jury trial, BLUE was convicted of all the drug charges.
The evidence in the case established that from 2002, up through and including April 15, 2010, BLUE was operating a garage off of Huggins Road in Red Springs, North Carolina. During that time frame, BLUE bought cocaine from several sources of supply and then sold the substance as crack cocaine to other customers for re-distribution. According to the evidence presented at the sentencing, BLUE was armed
with a firearm during each drug transaction. The evidence also established that BLUE provided a materially false affidavit to the presiding judge prior to trial. Based on BLUE’s role in the drug trafficking conspiracy, he was sentenced to 252 months’ imprisonment and 4 years of supervised release following his prison term.Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives as well as the Robeson County Sheriff's Office. Assistant United States Attorney Rudy E. Renfer represented the government.
Another Defendant Sentenced in OCDETF OperationRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court on March 6, 2013, Chief United States District Judge James C. Dever III, sentenced KENNETH HARRIS, 25, of Wilmington, North Carolina, to 120 months imprisonment followed by 3 years supervised release.
On May 8, 2012, a Federal Grand Jury returned a Criminal Indictment charging HARRIS. On December 3, 2012, HARRIS pled guilty to distributing a quantity of heroin.
According to the course of the investigation, on September 26, 2011, the Wilmington Police Department made an undercover purchase of a quantity of heroin from HARRIS. In addition, two codefendants, Linwood Nelson and Kathy Mishoe, were transporting heroin to HARRIS and another co-conspirator for distribution 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.
On March 26, 2012, the Wilmington Police Department stopped a rental car in which Mishoe was the driver and Nelson 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 HARRIS and another co-conspirator for distribution. Both Nelson and Mishoe were charged in the conspiracy and were sentenced on January 13, 2013, and January 29, 2013, respectively. Nelson was sentenced to 60 months imprisonment and Mishoe received a 36-month sentence.
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, powder cocaine, crack cocaine, and gang activity associated with this distribution. Thus far 31 persons have been sentenced in federal court as a part of this operation.Investigation of this OCEDTF 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.
Staff Sergeant Sentenced for Bulk Cash SmugglingRead the Press Release
Elizabeth City - United States Attorney Thomas G. Walker announced that in federal court today TONYA LONG, 30, of Fayetteville, North Carolinawas sentenced to 60 months imprisonment, 3 years of supervised release, and ordered to pay one million dollars in restitution, by United States District Judge Terrence W. Boyle for bulk cash smuggling and aiding and abetting the same, in violation of Title 31, United States Code, Section 5332(a) and Title 18, United States Code, Section 2.
U.S. Attorney Walker stated, “Tonya Long betrayed her team and while other soldiers were fighting for our country, she was stealing money intended to support the mission. Her conduct undermined her fellow soldiers and our nation’s reputation. This sentence demonstrates that conduct like this will not be tolerated.”
According to the Criminal Information filed on September 21, 2012, and information presented in open court, LONG was a Staff Sergeant (E-6) in the United States Army assigned to the 189th Combat Sustainment Battalion (XVIII Airborne Corps) attached to the 7th Special Forces Group for a wartime deployment to Afghanistan. From January 12, 2008, through April 5, 2009, LONG was deployed to Afghanistan under the command of the Combined Joint Special Operations Task Force – Afghanistan, of which the 7th Special Forces Group was a part. During her deployment to Afghanistan, LONG performed duties as a Customs Inspector by inspecting personal property of military service members prior to such property being loaded into containers for shipment back to the United States.
Between January 2009 and February 7, 2009, LONG aided and abetted another military service member in concealing over $1,000,000 by striping the components out of VCR players and then hiding the money inside. LONG cleared the containers through customs herself, and they were then shipped back to the United States in connex shipping containers. Neither LONG nor the other person declared the currency upon entry into the United States. LONG acted with the intent to evade the currency reporting requirements.
LONG spent nearly $500,000 on herself and her family. Some of the items she purchased were a vacation, a car, personal surgeries, and an 18 wheeler truck and trailer.
The criminal investigation of this case was conducted by United States Defense Criminal Investigative Service; the United States Department of Army - Criminal Investigation Command, Major Procurement Fraud Unit; the Special Inspector General - Afghanistan Reconstruction; and the Federal Bureau of Investigation. Assistant United States Attorney Banumathi Rangarajan prosecuted the case on behalf of the Eastern District of North Carolina.
Henderson Man Charged with Possession of Ammunition While Subject to A Domestic Violence Protective OrderRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that a criminal complaint, filed February 25, 2013, charges WILLIAM IRA HARRIS, JR. with possession of ammunition while subject to a domestic violence protective order, in violation of Title 18, United States Code, Sections 922(g)(8) and 924.A detention hearing was held today and U.S. Magistrate Judge Gates ordered HARRIS detained pending his trial.
According to filed court documents, on February 13, 2013 Raleigh Police Officers responded to a call regarding a violation of a Domestic Violence Protection Order. Officers located HARRIS in an office building where his estranged wife worked and asked him to go outside. After verifying that HARRIS had been served with a Domestic Violence Protective Order, the officers then arrested him for the violation. Officers received verbal consent to search HARRIS’ vehicle and located 59 rounds of ammunition, including one round of .243 caliber Winchester bullet with his wife’s name written on it.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Raleigh Police Department. Assistant United States Attorney Kimberly A. Moore is prosecuting this case for the United States.
Ash, N.C. Man Sentenced for Federal Drug ChargesRead the Press Release
Raleigh - United States Attorney Thomas G. Walker announced that in federal court on February 27, 2013, Chief United States District Judge James C. Dever III, sentenced FREDERICK WILLIAMS, 29, of Ash, North Carolina, to 112 months imprisonment followed by 3 years supervised release.
On July 11, 2012, Williams pled guilty to six counts of distribution of a quantity of cocaine base (crack).
In a joint operation between the Brunswick County Sheriff’s Office and the Bureau of Alcohol, Tobacco and Firearms an agent of the government purchased a quantity of crack cocaine from Williams on six separate occasions in the Longwood area of Brunswick County North Carolina. The transactions occurred between August and October 2011. The investigation also revealed that Williams possessed a handgun.
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 19 persons have been sentenced in federal court as a part of this OCDETF.
Investigation of this OCEDTF case is being conducted by 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 Brunswick County Sheriff’s Office. 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.
Smithfield Man Convicted of Federal Drug ChargesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday, Calvin Dwight MITCHELL, 27, of Smithfield, North Carolina, was convicted for his role in a drug trafficking conspiracy as well as distributing cocaine.
On August 8, 2012, a Federal Grand Jury returned a Criminal Indictment that charged one count of conspiring to distribute and possess with the intent to distribute cocaine in violation of Title 21, United States Code, Section 841(a)(1) and one count of distributing cocaine in violation of Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code Section 2, on May 24, 2012. On February 26, 2013, after a two-day trial, a jury found MITCHELL guilty of both counts. Based on these convictions, MITCHELL faces up to 60 years in prison.
The evidence in the case demonstrated that from at least March 2001, up to and including May 24, 2012, MITCHELL and at least two other individuals conspired to distribute cocaine. In his statement, MITCHELL admitted that he had obtained approximately 80 kilograms of crack cocaine from his sources of supply for re-distribution. During the investigation, a controlled buy of cocaine was conducted from MITCHELL which was recorded with an audio/video device. In addition, the evidence established that, upon his arrest, MITCHELL confessed to being a drug dealer and named approximately two other co-conspirators with whom he had been trafficking crack cocaine.
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.
Fayetteville Woman Sentenced for Producing Child PornographyRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court on February 22, 2013, in Wilmington, North Carolina, CATINA MARTELL, 38, of Fayetteville, North Carolina, was sentenced by Senior United States District Court Judge James C. Fox to 360 months imprisonment followed by a lifetime of supervised release.
On November 5, 2012, MARTELL pled guilty to one count of manufacturing/producing child pornography in violation of Title 18, United States Code, Section 2251(a) and (e).
“This case shows our ongoing determination to protect children in our community from those who prey on their innocence”, stated Mr. Walker.
Fayetteville Police discovered that in August of 2011, MARTELL had drugged a child and used the child to produce images of child pornography while the child was unconscious. Fayetteville Police Officers conducted a forensics review of MARTELL’S computer and found numerous images of child pornography. Fayetteville Police then worked with Homeland Security Investigations to complete the investigation and confirm by a forensic examination of computer equipment MARTELL’S criminal conduct. The Immigration and Custom’s Enforcement, Homeland Security Investigations Office in Raleigh was contacted because it was determined that MARTELL was sharing the images internationally.
"This sentence serves as an unfortunate reminder that women can be involved in these sickening crimes, too,” said Brock D. Nicholson, special agent in charge of ICE Homeland Security Investigations (HSI) in Atlanta. “While law enforcement agencies like HSI and the Fayetteville Police Department will continue to partner together to identify and arrest child predators, the sexual exploitation of children in our society is a growing problem that must be addressed by all levels of our communities."
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 Fayetteville Police Department, Immigration and Customs Enforcement-Homeland Security Investigations (HSI). Assistant United States Attorneys Jay Exum and Leslie K. Cooley prosecuted this case for the United States, with the support and assistance of the Cumberland County District Attorney’s Office.
Wilmington Man Sentenced for Two Robberies-Samuel GainesRead the Press Release
ELIZABETH CITY - United States Attorney Thomas G. Walker announced that in federal court yesterday SAMUEL EARL GAINES, 29, was sentenced by United States District Judge Terrence W. Boyle to 204 months imprisonment; 3 years supervised release, and was ordered to pay a $400.00 special assessment.
On October 23, 2012, GAINES pled guilty to Possession with Intent to Distribute Marijuana in violation of Title 21, United States Code 841(a) and Possessing and Using a Firearm during a Drug Trafficking Offense which occurred on July 11, 2011. In addition GAINES pled guilty to Robbery of a Business in violation of Title 18 United States Code 1951 and Possessing and Using a Firearm during a Crime of Violence which occurred on July 21, 2011.
On July 11, 2011, in Wilmington, he and others went to the home of a man who they believed had a large quantity of marijuana in hopes of robbing the man of his drugs. During the course of the robbery, the victim was shot four times. GAINES and his co-defendants stole various items of personal property from the victim along with a quantity of marijuana which they divided among themselves.
On July 21, 2011, GAINES and others went to Able Auto Insurance Agency in Wilmington and robbed the business of money while holding the employees at gun point. The investigation revealed GAINES and his two co-defendants went to a Dollar General store immediately before the robbery to buy sunglasses to wear during the robbery.
When questioned by law enforcement, GAINES admitted his involvement in both robberies.
Investigation of this case was conducted by the Wilmington Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the University of North Carolina at Wilmington Police Department. 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 Man Sentenced for Two RobberiesRead the Press Release
ELIZABETH CITY - United States Attorney Thomas G. Walker announced that in federal court yesterday SHERWIN ARCHIE, 59, was sentenced by United States District Judge Terrence W. Boyle to 264 months imprisonment; 3 years supervised release, and was ordered to pay a $200.00 special assessment.
On June 5, 2012, ARCHIE pled guilty to Possession of a Firearm by a Felon, in violation of Title 18 United States Code 922(g), Robbery of a Business in violation of Title 18 United States Code 1951 and Possessing and Using a Firearm during a Crime of Violence.
On October 19, 2011, in Wilmington ARCHIE went into a Family Dollar store and demanded money from the clerk. ARCHIE put the gun to the stomach of the clerk and threatened her with the firearm. ARCHIE was wearing a distinctive shirt that was described to law enforcement. He robbed the store of approximately $187. During a separate investigation, law enforcement executed a search warrant on ARCHIE’S home, where they discovered a .25 caliber hangun and ammunition and the sweatshirt worn during the course of the robbery. When ARCHIE was questioned about the robbery, he admitted to stealing the money from the Family Dollar. ARCHIE was sentenced as an Armed Career Criminal for having three or more violent felony convictions on his record.
Investigation of this case was conducted by the Wilmington Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the University of North Carolina at Wilmington Police Department. 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 Man Sentenced for Drug TraffickingRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced John Thomas VAUGHN, 33, of Wilmington, North Carolina, to 252 months imprisonment followed by 5 years supervised release.
On May 17, 2012, VAUGHN pled guilty to conspiring to possess with the intent to distribute and distributing more than 28 grams of cocaine base (crack).
On August 12, 2010, VAUGHN was stopped in a vehicle by the Wilmington Police Department. VAUGHN was traveling from Tabor City to Wilmington North Carolina. A Wilmington Police Detective found a quantity of cocaine in VAUGHN’S vehicle. The investigation revealed that VAUGHN had made several trips to South Carolina in order to pick up cocaine.
During the course of the investigation it was also uncovered that VAUGHN and other persons took part in home invasions of drug dealers, stealing cocaine and drug proceeds.
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The cocaine was then sold by VAUGHN and/or people associated with him. VAUGHN was responsible for the importation, conversion, and distribution of more than 3 kilograms of cocaine and 2 kilograms of cocaine base (crack). VAUGHN was primarily supplying crack cocaine in the Wilmington area.
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 18 persons have been sentenced in federal court as a part of this OCDETF.
Investigation of this OCEDTF case is being conducted by 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 Brunswick County Sheriff’s Office. 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.Selma Man Sentenced on Federal Drug ChargesRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court yesterday in Wilmington, North Carolina, SHOUNTARIO DEVON WALKER, 30, of Selma, North Carolina, was sentenced by the Honorable James C. Fox to 180 months’ imprisonment for his role in a drug trafficking operation.
On September 5, 2012, a Federal Grand Jury returned a Criminal Indictment that charged WALKER with one count of possessing with the intent to distribute 500 grams or more of cocaine and 6 counts of distributing cocaine. On November 5, 2012, WALKER pleaded guilty to all counts.
The evidence in the case revealed that WALKER was a drug dealer in the Smithfield, North Carolina, area and that from April 24, 2012, through June 5, 2012, WALKER possessed and sold more than 500 grams of cocaine to an individual working with law enforcement. Based on the extent of his drug trafficking and prior record, WALKER was sentenced to 180 months’ imprisonment.
Investigation of this case was conducted by the Johnston County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Rudy E. Renfer represented the government.
Raleigh Man Sentenced for Receipt of Child PornographyRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III sentenced DOUGLAS STEVENS, 53, to 63 months imprisonment followed by 15 years supervised release and ordered to pay a $2,000 fine.
On September 5, 2012, STEVENS pled guilty to one count of the Receipt of child pornography in violation of Title 18, United States Code, Section 2252(a)(2).
Evidence discovered during the investigation initiated by the Bureau of Immigration and Custom Enforcement’s Cyber Crimes Crimes Center determined that STEVENS had downloaded and received in excess of 4,000 images of prepubescent children engaging in sexually explicit conduct. STEVENS admitted to downloading the images since 2005.
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 Bureau of Immigration and Custom Enforcement (ICE), the North Carolina State Bureau of Investigation (SBI), and the Raleigh Police Department (RPD). Assistant United States Attorneys Ethan A. Ontjes prosecuted the case for the government.
Previous Officers of Corporate Entity Formerly Known as Blackwater Plead Guilty & Are SentencedRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today GARY JACKSON and WILLIAM WHEELER MATTHEWS, JR. pled guilty before United States District Judge Louise W. Flanagan, to one count each of failing to make and maintain records related to firearms in violation of Title 18, United States Code, Sections 922(m) and 923(g)(1)(A).
Additionally, Judge Flanagan sentenced JACKSON and MATTHEWS to 3 years probation, 4 months house arrest with stipulations, and fined them $5,000.00.
According to the Criminal Information filed on February 14, 2013, JACKSON and MATTHEWS, between 2005 and 2007, were employees of a corporate entity formerly known as Blackwater which was a licensed federal firearms manufacturer and dealer, and whose responsibilities for a certain period of time included direct or indirect supervisory authority over employees whose duties included the making and maintenance of records required by federal law. JACKSON and MATTHEWS failed to make and maintain or cause to be made and maintained adequate records specifying the actual location where firearms were stored on Blackwater’s premises and failed to make and maintain or cause to be made and maintained required records with respect to registration of certain firearms.
The corporate entity formerly known as Blackwater has entered into a Deferred Prosecution Agreement with the government in which it has agreed to extensive ongoing compliance programs and the payment of approximately 7 million dollars in fines.
Assistant United States Attorneys John Bowler and Eric Goulian with the Eastern District of North Carolina, along with Senior Trial Counsel Clifford Rones with the Department of Justice Counter Espionage Section, are handling the prosecution on behalf of the government.
Wilson, North Carolina, Crop Insurance Adjuster SentencedRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III, sentenced JIMMY THOMAS SASSER, 61, to 48 months imprisonment followed by 3 years supervised release. Restitution of $21,045,917 was also imposed. The sentence reflected a reduction for SASSER’S cooperation in the on-going investigation. SASSER has been on house arrest since November 21, 2011, when he was arrested on a criminal complaint for threatening a witness.
U.S. Attorney Thomas G. Walker stated, “Today’s sentence reflects the harm committed on our community as a result of this massive multi-million dollar fraud scheme and should serve as a deterrent for adjusters who are contemplating taking pay-offs to help farmers and agents file false claims.”
On January 23, 2012, a three-count Criminal Information was filed charging SASSER with conspiring to make false statements, to make material false statements, and to commit mail and wire fraud, all in violation of Title 18, United States Code, Section 371; wire fraud, in violation of Title 18, United States Code, Section 1343; and retaliating against a witness, victim, or informant, and attempting to do so, in violation of Title 18, United States Code, Section 1513. On February 21, 2012, SASSER pled guilty to the charges.
According to the Criminal Information and information provided in open court, SASSER, a crop insurance adjuster for Rural Community Insurance Services (RCIS), received cash pay-offs from 1996 through 2007 to falsify claims regarding the scope of damage or the farmer’s true tobacco production on a particular acreage.
The scheme consisted of adjusters, including SASSER, who would submit a false assessment of loss on a Proof of Loss form which was mailed or wired to the insurance company. The co-conspiring insurance agent would collect pay-offs for the inflated loss adjustments from the co-conspiring farms and would share the monies with the adjusters, including SASSER.
During the course of the investigation, SASSER lied to federal law enforcement officers. SASSER also sent a letter to the North Carolina Department of Insurance in November 2010, falsely denying having received money from Robert Carl Stokes. Stokes, an insurance agent from Wilson, North Carolina, previously pled guilty to charges in connection with the on-going crop insurance fraud investigation.
The Criminal Information further states that on November 19, 2011, SASSER threatened to cause bodily injury to two other people, one of whom was a cooperating defendant, in retaliation for giving information regarding the conspiracy to law enforcement officers.
“Adjusters play an important role when adjusting claims for producers. The sentencing of an insurance adjuster in this case should serve as a strong deterrent to those who chose to commit fraud against the federal crop insurance program and will help protect the integrity of this program by ensuring that taxpayer dollars are safeguarded,” stated Karen Citizen-Wilcox, Special Agent-in-Charge of the Southeast Region, USDA-OIG-Investigations.
Special Agent in Charge Jeannine A. Hammett, IRS-Criminal Investigation stated, “This criminal enterprise reaped thousands of dollars in profits by engaging in insurance fraud and money laundering. IRS-Criminal Investigation will zealously pursue individuals involved in such blatant and far-reaching criminal activity.”
Investigation of this case was conducted by the United States Department of Agriculture (USDA) - Office of Inspector General - Investigations, USDA - Risk Management Agency - Special Investigations Branch, and the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Banumathi Rangarajan is prosecuting the case.
Smithfield Pair Convicted of Federal Gun ChargesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court, Lionel Lamont COX, 40, of Smithfield, North Carolina, was convicted of his role in a gun trafficking scheme.
On August 29, 2012, a Federal Grand Jury returned a Criminal Indictment that charged COX and a co-defendant, Neville Samuel WARD Jr., 26, of Smithfield, North Carolina, with two counts of aiding and abetting the possession of a firearm by a convicted felon on or about May 14, 2012, and June 27, 2012. On February 14, 2013, after a two-day trial, a jury found COX guilty of both counts. WARD had previously pleaded guilty to both counts on January 24, 2013. Based on these convictions, COX and WARD each face up to 20 years in prison.
The evidence in the case demonstrated that on or about May 14, 2012, and June 27, 2012, COX and WARD were working at the Express Lube located in Smithfield, North Carolina. While working there, the evidence revealed that COX and WARD sold firearms on the premises of the Express Lube to another individual. Prior to these events, the evidence demonstrated that both COX and WARD had been convicted of felonies by the State of North Carolina. During the investigation, a third controlled buy of a firearm was conducted on May 21, 2012, involving COX and a fourth individual at the same Express Lube.
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.
Emissions Inspector Sentenced for Falsely Passing Vehicle InspectionsRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced ANGEL DARIO RODRIGUEZ NUNEZ, 30, of Durham, North Carolina, to 5 years of probation with a special condition of 6 months house arrest and a $500 fine. The sentence reflected a reduction for NUNEZ cooperation in the on-going investigation.
“Falsifying vehicle emission inspections directly undermines the Clean Air Act’s goal to protect and enhance our Nation’s air resources. This prosecution reflects that corruption among licensed inspectors that perpetrates pollution for personal monetary gain will not be tolerated,” said Mr. Walker.
A Criminal Information was filed on March 6, 2012, charging NUNEZ with conspiring to violate the Clean Air Act, in violation of Title 18, United States Code, Section 371, and making a material false statement, representation, or certification, in violation of Title 42, United States Code, Section 7413(c)(2)(A). On April 9, 2012, NUNEZ pled guilty to the charges.
According to the Criminal Information, NUNEZ worked at both Express Auto Sales, in Durham, North Carolina, and Services and Car Care Express Auto Sales and Services, also in Durham, North Carolina, as a licensed North Carolina emissions inspector. From May, 2009, to July, 2010, NUNEZ conspired with others to pass vehicles that would normally have failed the emissions inspection in exchange for $150 to $225 per car.
The Information further alleges that NUNEZ and his co-conspirators would enter the vehicle identification number either manually or by scanning. A surrogate vehicle, usually one manufactured between 1996 and 1999 that would not generate a vehicle identification number when connected to the analyzer, would be selected. Using the surrogate vehicle, an emissions report would be generated for the customer’s vehicle. During this period 817 vehicles passed the false inspection. Of those 817, NUNEZ falsely tested 353.
Each day emissions inspection reports are electronically transferred to the North Carolina Office of Information and Technology Services in Raleigh, North Carolina. The United States Environmental Protection Agency requires the State to conduct vehicle emissions testing in certain areas because the areas exceed national standards for carbon monoxide and ozone.
“Cheating on emissions tests damages the air we breathe and puts businesses that do things the right way at an unfair disadvantage,” said Attorney General Roy Cooper, whose department includes the NC SBI. “We’re working closely with our state and federal partners to crack down on these illegal polluters.”
“Americans have a right to breathe clean air, free from excessive vehicle emissions,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in North Carolina. “In order to protect the public from harmful air pollutants, governments must have accurate and honest vehicle emissions tests. This case is an excellent example of government agencies working together to protect both the public and the environment.”
Investigation of this case was conducted by the United States Environmental Protection Agency, Criminal Investigation Division; the North Carolina State Bureau of Investigations; and the North Carolina Department of Motor Vehicles, License and Theft Bureau. Assistant United States Attorney Banumathi Rangarajan is prosecuting the case.
Tabor City Man Pleads Guilty in Crop Insurance Fraud CaseRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today PATRICK REX LOVETT, 48, of Tabor City, North Carolina, pled guilty before Chief United States District Judge James C. Dever III, to structuring transactions to evade reporting requirements, in violation of Title 31, United States Code, Sections 5324(a)(3) and (d)(2).
According to the Criminal Information filed on November 26, 2012, and information presented in open court, LOVETT, a farmer and President of Lovett Farms, structured currency transactions with one or more domestic financial institutions for the purpose of evading the legal obligation to report currency transactions in excess of $10,000. From October 8, 2008, through September 14, 2009, LOVETT cashed 22 checks totaling over $160,000. Each check was issued in amounts less than $10,000, and some of the checks were tied to tobacco sales.
At sentencing, set for the May 20th, 2013, term of court, LOVETT faces up to 10 years imprisonment followed by up to 3 years of supervised release and a fine of $500,000.
This case is part of the ongoing investigation of the multi-million dollar crop insurance fraud in the Eastern District of North Carolina.
The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General – Investigations, the United States Department of Agriculture - Risk Management Agency – Special Investigations Branch, and the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
Former Camp Lejeune Employee Sentenced for Child Pornography ChargeRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court Wednesday, February 13, 2013, Senior United States District Judge Malcolm J. Howard sentenced SHANE MICHAEL GREEN, 39, to 108 months imprisonment followed by a 20 years of supervised release.
A Federal Grand Jury returned a Criminal Indictment on June 24, 2012. On October 15, 2012, GREEN pled guilty to downloading child pornography, in violation of Title 18, United States Code, Section 2252(a)(2). According to the Indictment on October 24, 2009, GREEN received a video of a minor engaged in sexually explicit conduct. According to the investigation, in May, 2011, law enforcement detected an IP address that was sharing images of child pornography. The IP address was tracked to a private network on Camp Lejeune, North Carolina. The Naval Criminal Investigative Service investigated and found that GREEN had been downloading child pornography using a peer to peer file sharing program while on Camp Lejeune employed as a civilian firefighter.
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 and the Naval Criminal Investigative Service with informational assistance provided by the National Center for Missing and Exploited Children. Special Assistant United States Attorney Mark Griffith prosecuted the case.
Cooperation Among Federal, State, and Local Law Enforcement Results in Crackdown on Sex Offenders Throughout the Eastern District of North CarolinaRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced a series of successful prosecutions of sex offenders in the Eastern District of North Carolina. The prosecutions were handled by law enforcement throughout the district, and include a wide variety of crimes and offenders, including producers of child pornography and repeat offenders.
“I am proud to announce this series of sentencing and guilty pleas,” said Walker, “not only because they help demonstrate that the safety of the children in our district is among our highest priorities, but because they demonstrate the extraordinary results that can be obtained only by the coordination and cooperation of agencies and prosecutors at every level of law enforcement.”
The cases included the sentencing of BRIAN JOSEPH VANCOURT of Havelock, NC, who on February 13, 2013 was sentenced by Senior District Court Judge Malcolm J. Howard to 192 months’ imprisonment and lifetime supervised release for receipt of child pornography. VANCOURT, who had previously been subject to a military court martial for child pornography crimes, was detected by two different law enforcement agencies – the Colorado Springs, CO Police Department and the FBI, less than one year after his release from the brig for his prior offense, using a peer to peer network to acquire child pornography and to discuss in explicit terms his desire to engage in sex acts with a 9 year old child. These leads led to a search conducted at VANCOURT’S Havelock-area residence by the FBI, the North Carolina State Bureau of Investigation, and the Havelock Police Department, which led to the discovery of a vast collection of child pornography, including tens of thousands of images and videos depicting the sexual abuse of children. The Craven County District Attorney’s office also participated in the prosecution.
That same day, Judge Howard sentenced BRANDON STEFAN LEE of Cumberland County to a term of 151 months imprisonment and lifetime supervised release for receipt of child pornography. LEE was discovered using peer-to-peer technology to traffic in child pornography from his residence on Fort Bragg, and had amassed a library of over 12,000 images of children being sexually exploited. Investigation was led by the Cumberland County Sheriff’s Office and the FBI.
Judge Howard also sentenced SHANE MICHAEL GREEN, 39, a former civilian firefighter on Camp Lejeune, to 108 months imprisonment and 20 years supervised release for downloading child pornography on a private network on the base. Law enforcement officials traced a user of peer-to-peer technology to that network and identified GREEN as the responsible party. GREEN had amassed a collection of child pornography totaling over 1,700 images and over 30 videos depicting child sexual abuse. The case was investigated by the Naval Criminal Investigative Service and the North Carolina State Bureau of Investigation.
Elsewhere, NATHANIEL BELTRAN GRINSTEAD of Wake County pled guilty on Tuesday to one count of manufacturing child pornography. GRINSTEAD produced child pornography involving at least two children in multiple North Carolina locations, and faces not less than 15, and up to 30 years imprisonment. He is scheduled for sentencing before District Court Judge Louise Flanagan in New Bern on June 5, 2013. The investigation in his case was an effort coordinated by the Morrisville Police Department and the FBI. The office of the Wake County District Attorney also participated in the prosecution.
Also on Tuesday, February 12, 2013, WILLIAM RICHARD RAPER, a/k/a WILLIAM RICHARD ROPER, a registered sex offender, pled guilty to one count of receipt of child pornography. RAPER, a resident of Craven County, was caught by a probation officer looking at child pornography on a laptop computer. Subsequent forensics confirmed that RAPER had used the internet to seek out child sex abuse images. Due to his prior sex offense, RAPER faces not less than 15 nor more than 40 years imprisonment. Sentencing is scheduled before Judge Flanagan on June 5, 2013. The New Bern Police Department, the North Carolina State Bureau of Investigation, and the FBI cooperated in the investigative effort, while the Craven County District Attorney’s office assisted in the prosecution.
These cases follow the earlier guilty plea of MITCHELL BYRON HALES, who pled guilty January 29, 2013 to one count of distributing child pornography. The plea was entered before Senior United States District Court Judge James C. Fox in Wilmington, North Carolina. HALES’ criminal conduct was also detected by investigators working undercover to identify and locate individuals engaged in the use of peer to peer technologies to trade in child pornographic material. He faces between 5 and 20 years imprisonment on the charge at the time of his sentencing, presently scheduled for the May 13, 2013 term of court. The case was investigated by the FBI and the Raleigh Police Department, and the Wake County District Attorney’s office collaborated on the prosecution.
Recent prosecutions also include sex offenders who have refused to comply with their sex offender registration obligations. On February 8, 2013, Chief United States District Court Judge James C. Dever sentenced FRED LAWRENCE DAVIS to 30 month’s imprisonment and lifetime supervised release for failing to maintain his sex offender registration obligations as required by law. After his release from a New York prison in 1996 after completing his sentence for Attempted First Degree Rape, DAVIS failed to register in any of the states he subsequently lived in, including New York, Arizona, and North Carolina, notwithstanding having been advised on multiple occasions of his registration obligations. Investigation of this case was led by the United States Marshal Service.
“We are grateful for the tremendous work and cooperation demonstrated by the results of these cases,” said Walker. “Whether you are a producer, distributor, or collector of images and videos of children being sexually abused, you should understand that this kind of conduct is unjustifiable in any way. We will not tolerate behavior that treats children as objects for sexual amusement. The difficult reality is that there are many more of these cases to come. As recent weeks demonstrate, we have a coalition dedicated to making sure that these cases are treated as the priorities they are.”
“These predators victimized a child every time they shared or downloaded a picture or video of child pornography. The FBI will remain vigilant and continue our active role as part of the national strategy to track down sexual predators to protect our children,” said Roger A. Coe, Acting Special Agent in Charge of the Charlotte Division of the FBI.
All of these cases were brought as 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.
The cases were prosecuted by Assistant United States Attorneys Jay Exum and Ethan Ontjes and Special Assistant United States Attorneys Mark J. Griffith and David A. Coleman.
Raleigh Man Sentenced for Drug TraffickingRead the Press Release
ELIZABETH CITY - United States Attorney Thomas G. Walker announced that in federal court yesterday United States District Judge Terrence W. Boyle sentenced DONTEZ RUFFIN, 30, to 420 months imprisonment followed by 5 years supervised release.
On December 1, 2012, RUFFIN plead guilty to one count of conspiring to distribute and possessing with intent to distribute 5 kilograms or more of cocaine, 280 grams or more of cocaine base (crack) and a quantity of marijuana, in violation of Title 21, United States Code, Section 841(a)(1). This case was part of the Organized Crime Drug Enforcement Task Force (OCDETF) Operation Damu Demolition.
The investigation demonstrated that RUFFIN was a member of a drug trafficking organization operating as early as 2004 in and throughout Southeast Raleigh that was responsible for multiple kilograms of cocaine being cooked into crack cocaine and distributed into local communities. RUFFIN and his co-conspirators were also responsible for the bulk distribution of high grade marijuana; more than 500 pounds of which were seized as part of the investigation.
Investigation of this case was conducted by the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force consisting of the Raleigh Police Department, the Cary Police Department, the Garner Police Department, the Durham Police Department, the North Carolina Alcohol Law Enforcement, the North Carolina State Highway Patrol, the Durham County Sheriff’s Office and the North Carolina Department of Probation and Parole. Assistant United States Attorney Denise Walker represented the government.
Insurance Agent and Farmer Sentenced in Multi-Million Dollar Crop FraudRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever III, sentenced an insurance agent and a farmer for their parts in a widespread tobacco crop fraud. WILLIAM LARRY ROGERS, 69, an insurance agent, was sentenced to a total of 108 months imprisonment followed by 3 years supervised release. ROGERS was also ordered to pay restitution in the amount of $8,381,378.
RICHARD ENOCH, 68, a farmer who filed false claims in 2006 and 2008, received 1 day imprisonment followed by 5 years supervised release and 6 months house arrest. ENOCH was also ordered to pay restitution in the amount of $58,672.00 and a fine in the amount of $5,000.
Both defendants are from Mebane, North Carolina.
U.S. Attorney Walker stated, As an insurance agent, Rogers was a gatekeeper to ensure honest reporting to the federal government and private insurance companies. Instead, Rogers abused his position of trust for personal enrichment and for the benefit of his insureds. Our office continues to aggressively investigate federal crop insurance fraud to protect the integrity of the United States Department of Agriculture programs and safeguard the taxpayer’s monies.”
Criminal Informations were filed on September 4, 2012, and September 27, 2012, charging ROGERS and ENOCH, respectively. On October 29, 2012, both defendants pled guilty to making false statements to the Federal Crop Insurance Corporation and aiding and abetting the same, all in violation of Title 18, United States Code, Sections 1014 and 2. Additionally, ROGERS pled guilty to conspiring to make false statements, to make material false statements, to commit mail and wire fraud, and to obstruction of justice, all in violation of Title 18, United States Code, Section, 371.
According to the Criminal Information and information presented in open court, ENOCH was a tobacco farmer in Alamance County. ENOCH’s insurance agent was ROGERS. ROGERS owned and operated W.L. Rogers Farm, LLC, and also worked as an insurance agent with Triangle Insurance Group, Inc. As an insurance agent, ROGERS sold, among other things, multi-peril crop insurance and private crop-hail policies for various crops including tobacco. As a result of his agency relationship with insurance companies servicing federal crop insurance policies, ROGERS was required to submit annual conflict of interest forms.
From September 2005 through September 2011, ROGERS conspired with others to commit fraud upon the federal crop insurance program and private crop hail programs, and to obstruct the federal investigation of the fraud. It was the purpose of the conspiracy to profit through the filing of false, ficitious, and fraudulent federal crop insurance claims and private crop hail claims, the sale of unreported tobacco, and to hide the criminal procceds through payments in nominee names.
ROGERS, on behalf of W.L. Rogers Farms, LLC, entered into a contract with Phillip Morris for the sale of tobacco each year from 2005 through 2011. ROGERS thereafter would take tobacco production from co-conspiring farmers and sell that tobacco on the W.L. Rogers Farms, LLC contract. As a result, the farmers were able to hide some or all of their tobacco production. Thereafter, the farmers, with the knowledge and assistance of ROGERS, filed false crop insurance claims.
Additionally, ROGERS helped his farmers pay bribes to loss adjusters who, in turn, inflated the extent of damage to tobacco crops. Loss adjusters submitted the inflated claims to the insurance companies and farmers received monies on false claims.
One such farmer was RICHARD ENOCH. In 2006, and then again in 2008, ENOCH sold tobacco through ROGERS and thereafter failed to disclose such tobacco in production reports in connection with his claims for indemnity payments. As a result of his false claims, ENOCH obtained $58,672 in indemnity payments to which he was not entitled. On March 23, 2011, ENOCH lied to federal law enforcement officers and denied selling hidden tobacco through ROGERS.
In addition to helping farmers commit federal crop insurance fraud, ROGERS lied on conflict of interest forms. Annually from October 2005, through August 2010, ROGERS denied and failed to disclose business relationships with his insureds, including that he was, among other things, (1) buying and selling tobacco with and through his insureds; (2) selling gas and fertilizer to his insureds; (3) loaning equipment to his insureds; and (4) employing an insured as a contract employee.
During the criminal investigation, ROGERS told at least one of his insureds to lie to federal investigators. Other conspiring farmers also provided false and misleading information to law enforcement officers.
As a result of the offense conduct, ROGERS caused to be paid a total of $7,359,197 worth of federal crop insurance indemnity payments to his insureds, and a total of $1,022,181 worth of crop hail indemnity payments to his insureds.
Kaye Citizen-Wilcox, Special Agent in Charge of the U.S. Department of Agriculture-Office of Inspector General added, “The United States Department of Agriculture, Risk Management Agency (RMA), through its private partnerships serve a vital role in serving the needs of farmers following a disaster. Fraudulent activity undermines this program and misdirects taxpayer funds from the puposes they were intended. It is the mission of the United States Department of Agriculture, Office of Inspector General-Investigations to investigate allegations of waste, fraud and abuse in USDA programs. We would like to thank United States Attorney Thomas G. Walker and Assistant United States Attorney Banumathi Rangarajan for aggressively prosecuting perpetrators of fraud in USDA programs.”
The criminal investigation of this case was conducted by United States Department of Agriculture – Office of the Inspector General – Investigations, the United States Department of Agriculture - Risk Management Agency – Special Investigations Branch, and the Internal Revenue Service - Criminal Investigation. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
Harnett County Man Sentenced to 114 Months Imprisonment for Drug TraffickingRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court on Monday, February 4, 2013, TERRY ALSTON, 46, of Harnett County, North Carolina, was sentenced by Senior United States District Judge W. Earl Britt to 114 months imprisonment for his role in a drug trafficking conspiracy. Specifically, ALSTON was sentenced for conspiring to distribute, and possessing with the intent to distribute, 280 grams or more of crack cocaine and 5 kilograms of powder cocaine, in violation of Title 21, United States Code, Section 846.
The investigation revealed that from at least January 1999 to April 2009, ALSTON agreed with other known individuals to possess and distribute large amounts of controlled substances in Harnett County and the southern Wake County area of North Carolina.
The investigation of this case was conducted by the Fuquay-Varina Police Department, the Harnett County Sheriff’s Office, the Holly Springs Police Department, the North Carolina State Bureau of Investigation, and the Drug Enforcement Administration.
The investigation into drug trafficking in the Fuquay-Varina area, entitled “Operation Freight Train”, is ongoing.
Convenience Store and Cellular Telephone Store Robber SentencedRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge Malcolm J. Howardsentenced JAMES ARTHUR ACKLIN, JR., 21, of Greenville, North Carolina, to 228 months imprisonment and 5 years of supervised release. ACKLIN was also ordered to pay restitution, in the total amount of $6,871.08. ACKLIN was sentenced for his role in a 12-day spree of seven convenience store and cellular telephone store robberies in and around Greenville in April and May of 2011.
On April 22, 2011, ACKLIN robbed, at gunpoint, the Wilco-Hess convenience store on South Memorial Drive in Greenville, netting $771.00. On April 25, 2011, ACKLIN robbed, at gunpoint, the Kangaroo Express convenience store on Charles Boulevard in Greenville, netting $176.68. On April 27, 2011, ACKLIN robbed, at gunpoint, the Kangaroo Express convenience store on Eastern Pines Road in Greenville, netting $96.46. On April 28, 2011, ACKLIN robbed, at gunpoint, the Kangaroo Express convenience store on Southeast Greenville Boulevard in Greenville, netting $66.00. On April 29, ACKLIN, along with Julius Deshawn Hobbs, robbed, at gunpoint, the Sunshine Wireless store on Third Street in Ayden, netting $3,288.97. On May 2, 2011, ACKLIN, again with Hobbs, robbed, at gunpoint, the U.S. Cellular store on Winterville Parkway in Winterville, netting $1,393.00. Finally, on May 3, 2011, ACKLIN, along with Hobbs and Marquail Earl Mouring, robbed, at gunpoint, the U.S. Cellular store on Southwest Greenville Boulevard in Greenville, netting $1,080.00.
On November 8, 2012, ACKLIN pled guilty to seven counts of Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951, and a count of using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A).
Co-defendant Julius Deshawn Hobbs of Greenville was previously sentenced to 132 months for his role in the three cellular telephone store robberies. Co-defendant Marquail Earl Mouring was previously sentenced to 108 months for his role in the May 3, 2011 robbery of the U.S. Cellular store on Greenville Boulevard in Greenville.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Greenville Police Department, the Ayden Police Department, and the Pitt County Sheriff’s Office. Assistant United States Attorney John Bennett is prosecuting the case.
Former Ft. Bragg Soldier Sentenced for Conspiracy to Defraud the United States GovernmentRead the Press Release
Broadway - United States Attorney Thomas G. Walker announced that in federal court on February 6, 2013, United States District Judge Terrence W. Boyle sentenced NATOSHA JUNE BOYD, 26, to 30 months imprisonment followed by 3 years supervised release, for her involvement in a scheme to defraud the United States Government. Restitution was ordered in the amount of $480,810.66.
On October 24, 2012, BOYD pled guilty to conspiring to defraud the United States by obtaining payment through false, fictitious and fraudulent claims, in violation of Title 18, United States Code, Section 286. According to court documents and proceedings, from January 2009 until April 2010, BOYD, along with co-conspirators, submitted false and inflated claims for travel reimbursement through the Department of Defense’s Travel System. BOYD is the seventh former Fort Bragg soldier to be sentenced in connection with the conspiracy. Her former husband, Richard T. Kelley II, was sentenced to forty-eight months in prison on October 26, 2012, and ordered to repay $799,371.30 in restitution.
Investigation of this case was conducted by The United States Army Criminal Investigation Division and the Federal Bureau of Investigation. Special Assistant United States Attorneys Jamal Rhinehardt and David Coleman, with the XVIII Airborne Corps Office of the Staff Judge Advocate, prosecuted the case.
Wilmington Man Sentenced for Drug TraffickingRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today OLDEN TERRY, 39, was sentenced by United State’s District Judge Terrence W. Boyle to 295 months imprisonment followed by five years supervised release.
On September 17, 2012, TERRY pled guilty to possession with intent to distribute 28 grams or more of cocaine base, in violation of Title 21, United States Code, Section 841(a) and possessing of a firearm during a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c).
During the month of November, 2011, officers with the Wilmington Police Department conducted two controlled purchases of crack cocaine and powder cocaine from TERRY. After the second controlled purchase, TERRY was immediately arrested and two search warrants were executed--one at the residence where TERRY lived, and the other, a stash house for the drugs. During the execution of the search warrants, law enforcement found a firearm and a small amount of marijuana in the residence. In the stash house, officers found a 157 grams of crack cocaine, along with 45.2 grams of powder cocaine, 370.8 grams of marijuana, and 4 hyrdrocodone pills.
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.
Lumberton Woman Sentenced for Health Care FraudRead the Press Release
New Bern - United States Attorney Thomas G. Walker announced that in federal court on January 31, 2013, United States District Judge Louise W. Flanagan sentenced ANDETRA MICHELLE SAMPSON, 39, to 60 months imprisonment followed by 3 years supervised release, for her involvement in a health care fraud scheme that defrauded Medicaid of at least $2,187,951.65 for false billings for behavioral health services for children that were not provided. Sampson was ordered to pay full restitution to Medicaid in the amount of the fraud.
On July 11, 2012, SAMPSON pled guilty to one count of conspiring to commit health care fraud. According to court documents and proceedings, SAMPSON and others engaged in a scheme to defraud Medicaid, a health care benefit program, by submitting fraudulent claims for Day Treatment Services for preschool and school-aged children. Day Treatment Services are a covered Medicaid service designed to address a child’s medically necessary mental health and behavioral needs as evidenced by the presence of a mental diagnosis. This service required the authorization of a mental health professional such as a psychiatrist, in the form of a signed service order. SAMPSON was the principal owner and manager for Country Layne Day Treatment, LLC. located in Pembroke, North Carolina. In April 2006, SAMPSON applied for and received a Medicaid provider number and orchestrated an elaborate system for submitting fraudulent billings to Medicaid by billing for services that were not provided or were provided by unqualified individuals, falsifying service notes to hide these false billings, and creating false service orders with forged doctors’ signatures. This activity continued through 2010.
In November of 2010, the United States Health and Human Services Office of the Inspector General (HHS-OIG), the Medicaid Investigations Division (MID) of the North Carolina Attorney General’s Office, the North Carolina State Bureau of Investigation and the United States Secret Service seized in excess of $300,000.00 in property belonging to SAMPSON; the property was purchased using Medicaid money. All of this property has now been forfeited to the United States and included a fleet of recreational vehicles, personal vehicles, and rare motorcycles. The seizure included two custom motorcycles, a 2008 Queen Cobra and a 2008 Bourget Cobra, valued at $89,500.00 and $69,000.00 respectively.
North Carolina Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigation Division (MID), Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region, and Russell F. Nelson, Special Agent in Charge, United States Secret Service, Charlotte Field Office join the U.S. Attorney’s Office in making today’s announcement.
Investigation of this case was conducted by The United States Department of Health and Human Services, Office of the Inspector General, the Medicaid Investigations Division of the North Carolina Attorney General’s Office, the United States Secret Service, the North Carolina State Bureau of Investigation and the North Carolina Division of Medical Assistance Program Integrity Section. Assistant United States Attorney Thomas Murphy and Special Assistant U.S. Attorney Erica Bing of the Medicaid Investigations Division of the North Carolina Attorney General’s Office prosecuted this case. Assistant United States Attorney Steve West handled the forfeiture of these assets.
Additional Defendant Sentenced in Operation No QuarterRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Louise W. Flanagan sentenced an additional defendant in a large drug trafficking conspiracy. JEREMY RICHARDSON, 28, of Greenville, North Carolina, received 150 months imprisonment followed by five years supervised release. RICHARDSON received an enhanced sentence due to his status as a career offender.
A Federal Grand Jury returned a Criminal Indictment on May 8, 2012, charging RICHARDSON with six violations of federal narcotics laws. RICHARDSON entered a guilty plea on September 11, 2012, to conspiring to distribute and possess with the intent to distribute 28 grams or more of crack cocaine and a quantity of powder cocaine.
According to evidence presented in Court, controlled buys were arranged in which crack cocaine was purchased from RICHARDSON during a two-year investgation. On several occasions during the investigation officers seized crack and powder cocaine from RICHARDSON. The investigation revealed that RICHARDSON had been selling drugs since 2001 and was responsible for the distribution of over 800 grams of crack cocaine and 10 kilograms of powder cocaine.
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 10 years and 5 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 lbs 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 – 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 Clark Everett 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.
Klux Klan Leader Found Guilty on Explosives and Gun ChargesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced today that in Federal Court Judge Terrence W. Boyle, sentenced CHARLES ROBERT BAREFOOT, JR., 50, of Benson, North Carolina, to 180 months imprisonment followed by 3 years supervised release.
BAREFOOT was convicted by a federal jury on September 25, 2012 of (1) Conspiracy to Possess Stolen Firearms; (2) Possession of Stolen Firearms; (3) Solicitation to Commit a Crime of Violence; (4) Receipt of Explosives With Intent to Kill; (5) Illegal Storage of Explosive Materials; and (6) Distribution of Explosive Materials to an Individual Under the Age of 21. United States District Judge Terrence W. Boyle presided over the trial.
According to evidence presented at trial, BAREFOOT was the leader of the North Carolina chapter of the National Knights of the Ku Klux Klan. In October, 2001, three members of BAREFOOT’S Klan group, including BAREFOOT’S son Daniel, then 17 years old, stole over 30 firearms from an out-building at a residence in Benson. They brought the guns to BAREFOOT’S residence, and BAREFOOT proceeded to dispose of them. He and another member of his Klan group, Marvin Glen Gautier, gave approximately ten of the guns to Michael Brewer, the leader of an affiliated Klan group in Lumberton, North Carolina. Brewer proceeded to sell the guns and share the proceeds with BAREFOOT.
Evidence at trial also revealed that BAREFOOT wanted to kill Johnston County Sheriff Steve Bizzell. BAREFOOT blamed Bizzell for the failure of a nightclub he operated, the Enchanted Barn. BAREFOOT also blamed Bizzell for the Klan group not being able to march in the September, 2001 Mule Days parade in Benson. BAREFOOT began building and experimenting with pipe bombs, and in the fall of 2001 he acquired a binary explosive which he hid in a freezer at his home. Sometime after that, BAREFOOT told Gautier that he had a plan to float down the Neuse River on a boat, get out in Smithfield, plant a bomb at the Sheriff’s Office, and then get back on the boat. BAREFOOT told Gautier that he needed someone to drop him off upriver and then pick him up at a bridge downriver. Gautier did not agree to participate, and there is no evidence that the plot was ever attempted. However, this evidence, along with additional evidence of BAREFOOT’S intent, formed the basis for BAREFOOT’S conviction on the charge of Solicitation to Commit a Crime of Violence.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, and the Johnston and Sampson County Sheriffs’ Offices. Assistant United States Attorney Eric Goulian prosecuted the case.
Raleigh Man Sentenced for Commercial Robberies & Weapons OffensesRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Louise W. Flanagan sentenced ANTONIO RASHAAD DOVINE, 23, to 146 years imprisonment followed by 5 years supervised release and ordered to pay $7,590.00 in restitution.
On November 16, 2012, DOVINE was found guilty by a jury after a week long trial in federal court in New Bern, North Carolina to one count of conspiracy to Rob a Business Engaged in Interstate Commerce, in violation of Title 18, United States Code, Section 1951; five counts of Aiding and Abetting the Robbery of a Business Engaged in Interstate Commerce and one count of Attempted Robbery of a Business Engaged in Interstate Commerce, in violation of Title 18, United States Code, Sections 1951 and 2; six counts of Aiding and Abetting the Use of a Firearm During a Crime of Violence, ie Robbery, in violation of Title 18, United States Code, Sections 924(c)(1)(A) and 2; and three counts of Felon in Possession of a Firearm in violation of Title 18, United State Code, Section 922(g)(1) and 924.
Evidence presented by the United States during the trial showed that on April 14, 2011, DOVINE; along with co-conspirators entered the Exxon Gas Station located at 1200 New Bern Avenue, Raleigh and robbed the business. During the robbery a clerk and customer were physically assaulted by the robbers. Later that same day, DOVINE, along with his co-conspirators robbed the McDonald’s restaurant located at 5016 Spring Forest Road, Raleigh. Next, on April 22, 2011, DOVINE, along with co-conspirators robbed the Hampton Inn located at 1001 Wake Towne Road, in Raleigh of US currency. Later that same evening, DOVINE and his co-conspirators, robbed the Courtyard Marriott located at 3908 Arrow Drive, in Raleigh of US currency and an employee’s laptop computer. On April 27, 2011 DOVINE, and his co-conspirators robbed the Wingate Inn located at 2610 Westinghouse Blvd, Raleigh, during which DOVINE struck the cashier in the face with the butt of a shotgun. Finally, on May 3, 2011, DOVINE and his co-conspirators attempted to rob the Family Fare BP gas station on 2120 New Bern Avenue in Raleigh but fled the scene before taking any currency. Firearms were used during all of these robberies.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives-Raleigh, and the Raleigh Police Department. Assistant United States Attorneys Ethan A. Ontjes and Leslie K. Cooley prosecuted the case for the government.
Cary Man Sentenced for CarjackingRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise Flanagan sentenced MICHAEL DONNELL LEONARD for weapons offenses stemming from a carjacking. LEONARD, 50, of Cary, North Carolina, received 262 months imprisonment followed by 5 years of supervised release.
On March 29, 2012, LEONARD entered a business in Raleigh, North Carolina, looking for his estranged girlfriend. He pulled a pistol on other employees of the center, and demanded the victim come to him. LEONARD held the gun against the woman as he forced her out of the building and to her car, and they drove off. A short while later, Raleigh Police located the vehicle at a gas station in Raleigh. When LEONARD and the woman emerged from the station, LEONARD was apprehended. A Lorcin .380 semi-automatic pistol was recovered.
USA Walker commented, “We are thankful this incident ended without physical injury to those threatened by this defendant, and hope the significant sentence meted out today will provide encouragement to all victims of domestic violence.”
Investigation of the cases was conducted by the Raleigh Police Department and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives. - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise Flanagan sentenced MICHAEL DONNELL LEONARD for weapons offenses stemming from a carjacking. LEONARD, 50, of Cary, North Carolina, received 262 months imprisonment followed by 5 years of supervised release.
On March 29, 2012, LEONARD entered a business in Raleigh, North Carolina, looking for his estranged girlfriend. He pulled a pistol on other employees of the center, and demanded the victim come to him. LEONARD held the gun against the woman as he forced her out of the building and to her car, and they drove off. A short while later, Raleigh Police located the vehicle at a gas station in Raleigh. When LEONARD and the woman emerged from the station, LEONARD was apprehended. A Lorcin .380 semi-automatic pistol was recovered.
USA Walker commented, “We are thankful this incident ended without physical injury to those threatened by this defendant, and hope the significant sentence meted out today will provide encouragement to all victims of domestic violence.”
Investigation of the cases was conducted by the Raleigh Police Department and the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives.
Wilmington Man Sentenced for Drug TraffickingRead the Press Release
Wilmington - United States Attorney Thomas G. Walker announced that in federal court on January 31, 2013 Senior United States District Judge James C. Fox, sentenced DAVID CRUMMY, 50, of Wilmington, North Carolina, to 180 months imprisonment followed by 5 years supervised release.
On February 28, 2012, CRUMMY pled guilty to conspiring to possess with the intent to distribute and distributing more than 280 grams of cocaine base (crack).
On June 30, 2011, New Hanover County Sheriff’s Detectives executed a search warrant at the residence of one of CRUMMY’S co-conspirators in Wilmington North Carolina. During the search, officers found approximately 249 grams of crack cocaine. CRUMMY and several conspirators had been converting cocaine into crack cocaine at the time of the search warrant.During the course of the investigation it was uncovered that CRUMMY was responsible for the importation, conversion and distribution of more than 4 kilograms of cocaine base (crack) from January 2010 until the time of his arrest. CRUMMY was supplying crack cocaine in the Wilmington area.
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 29 persons have been sentenced in federal court as a part of this OCDETF.
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.
Rocky Mount Tax Service Owner Agrees to Plead GuiltyRead the Press Release
Raleigh – United States Attorney Thomas G. Walker announced that in federal court yesterday, charges were filed under a Criminal Information against TINA LURETHA TYREE JOHNSON, 45, of Rocky Mount, North Carolina. JOHNSON has entered into a plea agreement in which she will pled guilty to Tax Fraud and Aiding and Abetting in violation of Title 18, United States Code, Section 287 and 2. The case is to be scheduled before Chief United States District Judge James C. Dever
U.S. Attorney Walker stated, “Our tax system relys on the honesty of tax payers with a heightened duty of honesty expected from professional tax preparers. Whenever someone like JOHNSON deliberately files false returns, the U.S. Attorney’s Office in support of the IRS will pursue the matter through the Courts as provided by our laws.”
According to the Criminal Information filed on January 31, 2013, JOHNSON, beginning in or about January 2008 and continuing until on or about June 2008, did knowingly make and present, and caused to be made and presented, to the Internal Revenue Service claims against the United States for payment that were false by preparing federal income tax returns for individuals totaling approximately $40,867.00.
“A federal tax return is one of the most important financial documents that many individuals or families deal with in a given year and taxpayers need and deserve return preparers who are ethical, fully qualified and able to provide the best possible service,” stated Jeannine A. Hammett, Special Agent in Charge for IRS Criminal Investigation- Charlotte Field Office. “Taxpayers are cautioned to seek out a reputable return preparer with the proper credentials. The IRS is increasing its education and enforcement presence in the return preparer community this filing season in an effort to combat this type of fraud. Please don’t fall victim,” said Hammett.
The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation. Assistant United States Attorney J. Gaston B. Williams is handling the prosecution on behalf of the government.
Fayetteville Pain Center Settles HIV Discrimination CaseRead the Press Release
Raleigh – United States Attorney Thomas G. Walker, along with the United States Justice Department, announced today that as part of its Barrier-Free Health Care Initiative, it has reached a settlement with the Fayetteville Pain Center under the Americans with Disabilities Act (ADA). The settlement resolves allegations that the Fayetteville Pain Center violated the ADA by refusing to treat a woman because she has HIV.
The complainant, a woman with HIV who was suffering from back pain as a result of a car accident, visited the Fayetteville Pain Center in Fayetteville, North Carolina, seeking treatment. According to the complaint, the woman was unable to obtain medical treatment because the doctor at the Fayetteville Pain Center refused to treat a person with HIV. The ADA requires public accommodations such as doctors’ offices, medical clinics, hospitals, and other health care providers, to provide people with disabilities, including those with HIV, equal access to goods, services, and facilities.
Under the settlement, the Fayetteville Pain Center must pay $10,000 to the complainant and $5,000 to the United States in civil penalties, train its staff on the ADA, and develop and implement an anti-discrimination policy.
“All people deserve equal access to medical treatment. People with HIV and other disabilities must not be denied health care because of their disabilities. Medical professionals, perhaps more than anyone, should understand that the universal precautions they use when treating all patients mean no one should be excluded from treatment based on HIV,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “This type of discrimination will not be tolerated.”
Mr. Walker emphasized that “this settlement should also send a message to all health care providers in Eastern North Carolina that a disability cannot be a factor in determining accessibility to care and treatment.“
This settlement is part of the Department of Justice’s Barrier-Free Health Care Initiative, a partnership of the Civil Rights Division and U.S. Attorneys’ offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities. The initiative was announced on the anniversary of the ADA in July 2012 and 40 U.S. Attorneys’ offices are participating. The division expects the initiative to address access to health care for people with HIV and hearing disabilities, as well as physical access to medical facilities. In 2012, the division and U.S. Attorneys reached two settlement agreements regarding access to medical care for people with HIV and four settlements regarding access to medical care for people with hearing disabilities.
For more information on the ADA and HIV visit www.ada.gov/aids. Those interested in finding out more information about these settlements or the obligations of public accommodations under the ADA, including how it protects people with HIV in accessing medical care, may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
Gunnery Sergeant Pleads Guilty to Soliciting BribesRead the Press Release
Raleigh – United States Attorney Thomas G. Walker announced that in federal court today JULIO ARREOLA, 36, of Camp Lejuene, North Carolinapled guilty before Senior United States District Judge James C. Fox to demanding and seeking a bribe in violations of Title 18, United States Code, Sections 201(b)(2)(A) and (B).
U.S. Attorney Walker stated, “Corruption among staff non-commissioned officers in the military like ARREOLA’S undermines our ability to ensure that our service members in the field have the resources they need to fulfill our nation’s missions overseas.”
According to the Indictment filed on July 17, 2012 and information stated in open court, ARREOLA was a Gunnery Sergeant in the United States Marine Corps (USMC). From in or about February, 2008, and continuing to in or about September, 2008, ARREOLA was assigned to the I Marine Expeditionary Forces Headquarters Group (I MHG), Engineer Company, at Camp Fallujah, Iraq. During his deployment to Camp Fallujah, ARREOLA served as a non commissioned officer who supervised construction projects. In this capacity he obtained quotes from contractors, initiated purchase orders on behalf of the U.S. Government, and oversaw the delivery of supplies. ARREOLA would submit the quotes for approval through the military chain of command.
Sometime in or about June 2008, the exact date unknown, ARREOLA solicited a bribe from Davut Construction and Services Company, a company offering engineering, logistics, construction and life support services to the U.S. Government. Specifically, ARREOLA told a company representative that he, ARREOLA, would recommend to the Department of Defense that various items be purchased from Davut in return for cash payments. ARREOLA further told the representative that the cash payments could be generated from the manipulation of the contracting relationship to be established between Davut and the Department of Defense; that is, ARREOLA told the representative to generate the bribe money by having Davut inflate the costs in the proposed quote and/or deliver less than the items listed in the quote, and then give him, ARREOLA, the difference in price as a bribe.
A sentencing hearing is scheduled for the Court’s May 13th term of court. At sentencing, ARREOLA faces a total maximum sentence of 15 years imprisonment and/or a $250,000 fine, and 3 years of supervised release.
Defense Criminal Investigative Service (DCIS) Special Agent in Charge John F. Khin, Southeast Field Office, commented, "It is disheartening when a military member abandons his code of conduct and violates a position of trust for personal enrichment. The DCIS investigates fraud and corruption that undermines the integrity of the Department of Defense. We continue to aggressively investigate violators to preserve precious American taxpayer dollars and better support our Warfighters serving honorably and selflessly in Southwest Asia."
The criminal investigation of this case was conducted by United States Defense Criminal Investigative Service and the United States Naval Criminal Investigative Service. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
Business Owner Sentenced in Federal Crop Insurance Fraud SchemeRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday STEVEN M. HARDWICK, 53, of Nichols, South Carolina, was sentenced by Chief United States District Judge James C. Dever III, to 12 months and one day imprisonment, restitution of $171,513, and 5 years of supervised release. HARDWICK previously pled guilty to conspiring to make false statements, to make material false statements, and to commit mail fraud and wire fraud, all in violation of Title 18, United States Code, Section 371 and aiding and abetting these crimes in connection with the Federal Crop Insurance Program, in violation of Title 18, United States Code, Section 1014.
Mr. Walker stated, “As a farmer, Hardwick understood the importance of the federal crop insurance program as a safety net to the community in times of disaster and yet, he helped another steal from that same program. The sentence imposed today reflects the seriousness of his offense and should serve as a deterrent for others.”
According to the investigation, which stems from an ongoing crop insurance investigation, HARDWICK allowed his name to be used in connection with federal crop insurance and tobacco contracts to facilitate the sale of tobacco not reported to the federal government. The Criminal Information, filed on September 16, 2011, alleges that HARDWICK, maintaining dual residences in Clarendon, North Carolina, and Nichols, South Carolina, owned and operated a sole proprietorship which engaged in the business of tree spraying and planting.
The Information goes on to allege, an unnamed farmer devised the scheme to defraud the government and recruited HARDWICK and others to act as nominee farmers, obtaining federal crop insurance policies in their own names for certain crops, even though they did not engage in any farming. From September, 2006, to June, 2010, HARDWICK and others executed applications for crop insurance for tobacco, soybeans, and peanuts, falsely declaring the crop to be their own. HARDWICK and others secured identifying information for various persons in the community, executing contracts with tobacco companies using the stolen names and identifying information. HARDWICK and other co-conspirators secured flue-cured tobacco marketing agreements in their own names even though they were not the bona fide producer of the crop. The unnamed farmer sold his tobacco and other crops on contracts written in the names of other co-conspirators or unknowing victims, profiting under the scheme by being paid twice for each pound of tobacco. HARDWICK and other co-conspirators profited under the scheme because they were paid for the use of their names on the contracts.
As discussed in open court yesterday, HARDWICK also sold tobacco not reported to the federal government for other farmers separate and apart from the conspiracy described above. HARDWICK also lied to the USDA - Farm Service Agency County Committee on two occasions in an effort to conceal the fraud.
IRS-Criminal Investigation Special Agent in Charge Jeannine A. Hammett stated, “Mr. Hardwick manipulated governmental programs to line his own pockets. The object of this fraudulent scheme was to swindle the government and the taxpaying public.” “Once again, IRS criminal investigators along with the United States Attorney’s Office have vindicated the interests of the people of the United States.”
Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation; the United States Department of Agriculture - Office of Inspector General, Investigations; and the United States Department of Agriculture - Risk Management Agency, Special Investigations Branch. Assistant United States Attorney Banumathi Rangarajan is serving as prosecutor for the government.
Smithfield Man Convicted of Federal Drug ChargesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court on Friday, January 25, 2013 GREGORY DEVON OBEY, 28, of Smithfield, North Carolina, was convicted for his role in a drug trafficking conspiracy as well as multiple counts of distributing cocaine and crack cocaine.
On August 8, 2012, a Federal Grand Jury returned a Criminal Indictment that charged OBEY with one count of conspiring to distribute and possess with the intent to distribute 280 grams or more of crack cocaine and 5 kilograms or more of powder cocaine. The Indictment also charged OBEY with 7 counts of distributing powder cocaine and 28 grams or more of crack cocaine from August 30, 2011, up to and including June 13, 2012. On January 25, 2013, after a three-day trial, a jury found OBEY guilty on all counts. Based on these convictions, OBEY faces up to a life sentence in prison.
The evidence in the case demonstrated that from at least March 2011, up to and including June 12, 2012, OBEY and at least seven other individuals conspired to distribute crack and powder cocaine. In his statement, OBEY admitted that he had obtained over 55 kilograms of crack cocaine and over 79 kilograms of powder cocaine from his sources of supply for re-distribution. During the investigation, seven controlled buys of cocaine and crack cocaine were conducted from OBEY, each recorded with an audio/video device. In addition, the evidence established that, upon his arrest, OBEY confessed to being a drug dealer and named approximately seven other co-conspirators with whom he had been trafficking cocaine and crack cocaine. The evidence developed also revealed that, shortly before his arrest, OBEY threatened a witness in the case.
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.
Hope Mills Man Sentenced for Drug & Weapons OffensesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today DEVON LAMAR MARION, 33, of Hope Mills, North Carolina was sentenced by Chief United States District Judge James C. Dever to 168 months imprisonment.
On August 22, 2012, MARION pled guilty to possession with intent to distribute more than twenty-eight (28) grams of cocaine base (crack), a quantity of powder cocaine and a quantity of marijuana in violation of Title 21, United States Code, Section 841(a)(1); 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)(1)(A); and one count of possession of a firearm and ammunition by a felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924.
According to the investigation, MARION was a cocaine dealer in the Cumberland County, North Carolina area. As a result of a search warrant executed at his home, MARION was foundto have drugs, a gun, and ammunition in Hope Mills, North Carolina.
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, Cumberland County Sheriff’s Office, and the Fayetteville Police Department. Assistant United States Attorney S. Katherine Burnette prosecuted the case.
Maxton Man Sentenced for Drug TraffickingRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrance W. Boyle sentenced ALEX MICHAEL LOCKLEAR, 61, of Maxton, North Carolina, to 300 months imprisonment followed by 5 years supervised release.
On October 4, 2012, LOCKLEAR pled guilty to conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine and 28 grams or more of cocaine base (crack), in violation of Title 21, United States Code, Section 841(a)(1) and all in violation of Title 21, United States Code Section 846.
The evidence presented at the sentencing hearing revealed that LOCKLEAR was a significant trafficker of cocaine who from at least 2005 until the time of his arrest on August 3, 2012, was responsible for the distribution of over 185 kilograms of cocaine.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives, the North Carolina State Bureau of Investigation, and the Robeson County Sheriff’s Office.
Fayetteville Man Sentenced for Bank RobberiesRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced RASON LAMAR SPARKMAN, 31, to 115 months imprisonment followed by 3 years supervised release, and SPARKMAN was ordered to pay $7,132.52 in restitution.
On September 4, 2012, SPARKMAN pled guilty to two counts of bank robbery, in violation of Title 18, United States Code, Sections 2113(a).
On June 27, 2011, SPARKMAN robbed the RBC Centura Bank on Ramsey Street, (now PNC Bank), in Fayetteville, North Carolina, taking $1,869.00. The investigation revealed that SPARKMAN, approached a bank teller and demanded money. SPARKMAN fled from the scene in a taxi cab.
On August 8, 2011, SPARKMAN robbed a Wachovia Bank on South McPherson Street in Fayetteville, North Carolina taking $4,414.45. SPARKMAN was identified through the bank’s surveillance video and fingerprint analysis.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Fayetteville Police Department. Assistant United States Attorney S. Katherine Burnette is prosecuting the case.
Woman Sentenced to Prison for Fabricating Hospital Insurance ClaimsRead the Press Release
Raleigh - United States Attorney Thomas G. Walker announced that in federal court today before United States District Judge Terrence W. Boyle, MEDINA K. BLANTON, 39, of Hubert, NC, was sentenced to a 1 year and one day in prison, followed by 3 years of supervised release, on the charge of Wire Fraud, in violation of Title 18, United States Code, Section 1343. BLANTON was also ordered to make restitution to insurer AFLAC in the amount of $234,295.00.
Pursuant to the Defendant’s plea of guilty to the one-count Criminal Information, the Government proved that between September of 2004 and April of 2010, Blanton devised a scheme to defraud AFLAC, an insurance company, by filing $234,295.00 in false Hospital Confinement Indemnity claims. The evidence showed that the defendant and her family members were covered beneficiaries under a Hospital Confinement Indemnity insurance policy (hereafter “the Policy”) with AFLAC. In the event that BLANTON or her family members were admitted as an inpatient to a hospital, the Policy covered BLANTON and her family for certain expenses incurred during the period of the hospital admission. The defendant created and filed claims with AFLAC stating that BLANTON and certain members of her family had been admitted to a hospital as an inpatient for periods of days and weeks when, in fact, BLANTON and her family members were not admitted to a hospital as an inpatient during the times listed in the claims. To carry out the scheme BLANTON fabricated medical documentation to make it appear as though BLANTON and her family members had been admitted to a hospital. BLANTON received and deposited funds from AFLAC in the total amount of $234,295 relating to the false and fraudulent claims. BLANTON spent the money on her own interests.
Investigation of this case was conducted by the Federal Bureau of Investigation and the North Carolina Department of Insurance. Assistant United States Attorney William M. Gilmore represented the United States.
Wilmington Man Convicted for Drug Sale and Using Firearm During and in Relation to the Drug SaleRead the Press Release
RALEIGH- United States Attorney Thomas G. Walker announced that in federal court today WILLIS SARVIS, 34, was convicted by a jury of Distrbution of PCP in violation of Title 21, United States Code, Section 841(a)(1), and Using and Carrying a Firearm during and in relation to a drug trafficking crime in violation of Title 18, United States Code, Section 924(c). Previously, SARVIS pled guilty to one count of felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924.
On March 18, 2011, Wilmington officers responded to the Hillcrest Housing Community regarding a man that was shot, and ultimately died from his injuries. The investigation revealed that during the course of a drug deal, the victim had been shot twice with a Romarm/Cugir, WASR, 7.62 x 39 mm assault rifle. There were numerous shell casings from the rifle in the area and the investigation revealed two homes were also struck with bullets. The investigation quickly focused on SARVIS who had left the rifle with a friend who gave the rifle over to law enforcement. Police located SARVIS and took him into custody where he confessed to selling the deceased two small bags of PCP and shooting him when an altercation arose between them. SARVIS claimed the shooting was in self-defense.
Investigation of this case was conducted by the Wilmington Police Department 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.