Eastern District of North Carolina
Press releases recorded for this federal judicial district.
Pamlico Drug Dealers Receive Federal Prison SentencesRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker and District Attorney Scott Thomas announced today that two drug dealers from Pamlico County were sentenced in federal court last week. DON ELBERT LEWIS, 57 of Bayboro, NC and WILLIAM JERRY WARREN III, 24 of Grantsboro, NC were eachsentenced as a result of unrelated investigations carried out by the Pamlico County Sheriff’s Office.
According to Mr. Walker, “These prosecutions demonstrate our continued battle to rid communities from the scourge of drug traffickers who negatively impact the quality of life for law abiding citizens.”
On January 10, 2012 LEWIS was sentenced to fifteen years imprisonment followed by five years of supervised release after pleading guilty to conspiring to distribute and possess with the intent to distribute 280 grams or more of cocaine base (crack), and five kilograms or more of cocaine. According to the investigation, on several occasions deputies from the Pamlico County Sheriff’s Office utilized an informant to purchase cocaine base (crack) from LEWIS and others at his residence on Garrison Lane in Bayboro. Further investigation revealed that LEWIS allowed his residence to be used by prostitutes as well as by other drug dealers to process and sell narcotics in exchange for either drugs or proceeds from the prostitution and drug sales. The investigation revealed that in total, over 14 kilograms of cocaine and cocaine base (crack) were either processed or sold from LEWIS’ residence.
On January 11, 2013, WARREN was sentenced to 63 months imprisonment followed by 3 years of supervised release after pleading guilty to distributing cocaine base (crack) and to possessing a firearm after being convicted of a felony criminal offense. According to the investigation, deputies from the Pamlico County Sheriff’s Office utilized an informant to purchase crack from WARREN in Reelsboro, NC. At a later date, a concerned citizen gave a tip to a deputy of the Pamlico County Sheriff’s Office that WARREN was occupying a vehicle nearby and was in possession of a firearm. Upon being approached, WARREN exited the vehicle and attempted to leave the scene. After he was stopped, WARREN resisted a frisk by the sheriff’s deputy and during a struggle with the officer, kicked a .45 caliber handgun underneath the deputy’s patrol car. After WARREN was taken into custody, bystanders who observed the struggle informed the deputy that they had seen WARREN attempt to rid himself of the weapon during the struggle.
LEWIS and WARREN were also ordered to pay restitution to the Pamlico County Sheriff’s Office. LEWIS was ordered to pay $1,520.00 and WARREN was ordered to pay $250.00. If they are unable to pay immediately, they must participate in the Inmate Responsibility Program to work and pay the restitution while incarcerated.
District Attorney Thomas said, “This investigation is part of our ongoing efforts to fight illegal drug activity in our area. The Pamlico County Sheriff’s Department did a good job investigating this case and working with Prosecutor Gus Willis to achieve convictions and prison sentences. We will continue to pursue investigations and prosecutions to address drugs and other illegal activity.”
Special Assistant United States Attorney Augustus Willis represented the government in these cases. Mr. Willis is a prosecutor with the District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties. District Attorney Scott Thomas has assigned him to the United States Attorney’s Offices to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Willis’ position is funded through a grant provided by the Governor’s Crime Commission.
Greenville Man SentencedRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court on Friday, January 11, 2013, United States District Judge Louise W. Flanagan sentenced DALE CABINESS, 55,of Greenville,North Carolina, to 188 months imprisonment followed by 6 years supervised release.
A Federal Grand Jury returned a Criminal Indictment on March 14, 2012, charging CABINESS with violations of federal narcotics laws. CABINESS entered a guilty plea on August 14, 2012, to the distribution of quantities of heroin.
According to evidence presented in Court, the Greenville Regional Drug Task Force used a confidential informant to purchase heroin from CABINESS four times between December 1, 2011, and February 23, 2012. The investigation revealed that CABINESS was responsible for the distribution of 840 grams of heroin between September 2011 and April 2012.
CABINESS received an enhanced sentenced based on his status as a Career Offender.
Investigation of this case was conducted by the Greenville Regional Drug Task Force consisting of the Greenville Police Department, Pitt County Sheriff’s Office, Farmville Police Department, North Carolina State Bureau of Investigation, and the Drug Enforcement Administration. The prosecution was handled by Special Assistant United States Attorneys Glenn Perry. Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office. Pitt County District Attorney Clark Everett has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.
Bank Robbery Sentencing for Wilmington RobberiesRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today REGGIE ANDRE BECKTON, 27, of Wilmington, North Carolina was sentenced by Senior United States District Judge W. Earl Britt to 300 months imprisonment followed by 3 years of supervised release. He was also ordered to pay $689.00 in restitution to the New Bridge Bank and $2,240.00 to RBC Bank.
On September 12, 2012, BECKTON was convicted on one count of Bank Robbery in violation of Title 18, United States Code, Section 2113(a) and one count of Bank Robbery; Aiding and abetting in violation of Title 18, United States Code, Sections 2113(a) and 2. According to the investigation, BECKTON robbed the RBC Centura Bank located at 5120 Market Street, Wilmington, North Carolina on August 17, 2010. On August 26, 2010, BECKTON robbed the New Bridge Bank located at 704 South College Road in Wilmington.
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 Wilmington Police Department. Assistant United States Attorney S. Katherine Burnette prosecuted the case.
Halfway House Escapee Sent Back to Prison for Failing to Return When OrderedRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court yesterday afternoon, United States District Judge Louise W. Flanagan sentenced BENNIE JOSEPH DUNLAP, III, 26, of Raleigh, to 21 months in prison, followed by a 3 year term of supervised release, on a single charge of Escape in violation of Title 18, United States Code, Section 751.
Pursuant to DUNLAP’s guilty plea and other evidence in the case, in November of 2011 a federal judge sentenced DUNLAP on a charge for possession of a firearm while being a convicted felon. As a part of the sentence, DUNLAP was ordered to serve a term of imprisonment in the custody of the United States Bureau of Prisons (BOP).
Under its own rules and policies, and at its discretion, the BOP may transfer an inmate to a halfway house to serve a portion of the term of imprisonment ordered by the court. Service of a term of incarceration at a halfway house is a privilege. Although inmates are given limited privileges to leave a halfway house to, among other things, seek gainful employment and obtain medical care, inmates are at all times in the custody and control of the BOP through the halfway house staff. When authorized to leave, inmates may only be away from the halfway house for the duration of time authorized by the halfway house. Moreover, when authorized to leave, inmates must only go to the authorized location, and then promptly return to the halfway house as instructed.
The evidence showed that on June 21, 2012, the BOP transferred DUNLAP to the halfway house known as Community Corrections Center, Cavalcorp Ltd. (hereinafter “Cavalcorp”), located at 312 Tryon Road in Raleigh, North Carolina. Upon transfer to Cavalcorp, DUNLAP was advised orally and in a written document as follows:
This is your official notification that should you be unaccountable at work, pass, or any other approved site, or if you leave the center without permission, you will be charged with escape.
Contrary to popular belief by the inmate population, you DO NOT HAVE 72 HOURS TO TURN YOURSELF IN before escape charges are filed.
Criminal Escape charges may be pursued with the US Attorney’s Office in each and every case.DUNLAP executed a document containing this official notification. Above DUNLAP’s signature the document also stated, “I have read the above information and fully understand that if I leave the center without permission, or am unaccountable at any time, I can be charged criminally with Escape. I also understand that there is no grace period to turn myself back in to avoid being charged.”
The evidence showed that on June 21, 2012, DUNLAP was also advised orally and in writing of the contents of an “Acknowledgment of Custody” form. This form advised DUNLAP that, “The willful failure of a prisoner to remain within the extended limits of his confinement or to return within the time prescribed to an institution or facility designated by the Attorney General shall be deemed an escape from custody of the Attorney General...” DUNLAP executed the acknowledgment under the section which stated:
I understand that, while at CAVALCORP LTD. COMPREHENSIVE SANCTION CENTER, I am in the custody of the Attorney General of the United States / Bureau of Prisons. I further understand that leaving the facility without permission from the staff shall be deemed an escape from the custody of the Attorney General. I also understand that leaving my place of employment or training without permission from the staff, or failure to return to the facility within the time prescribed shall be deemed an escape from the custody of the Attorney General of the United States supervision.The evidence further showed that on July 31, 2012 at approximately 7:40 am, DUNLAP signed out, and was authorized to leave Cavalcorp for the limited purpose of going to Wake Medical Center. DUNLAP was instructed that while away he was to be in telephone contact with Cavalcorp every 2 hours. DUNLAP was to immediately return to Cavalcorp after visiting Wake Medical Center.
DUNLAP failed to report his whereabouts to Cavalcorp by phone as instructed, and was unaccountable from 7:40 a.m until approximately 3:00 pm. At approximately 3:00 pm on July 31, 2012, DUNLAP called Cavalcorp and advised that he was not at Wake Medical Center. Cavalcorp staff ordered DUNLAP to immediately return to the halfway house. DUNLAP did not return as instructed. At approximately 4:15 pm on July 31, 2012, DUNLAP called Cavalcorp again and was ordered to immediately return to Cavalcorp. DUNLAP did not return as instructed. At approximately 5:30 on July 31, 2012, DUNLAP called Cavalcorp again and was ordered to immediately return to Cavalcorp. DUNLAP did not return as instructed.
DUNLAP made no contact with Cavalcorp for two full days between the evening of July 31, 2012 and August 2, 2012. At 6:15 pm on August 2, 2012 DUNLAP called and was again ordered to immediately return to Cavalcorp. Later that night at 10:54 pm, DUNLAP returned to Cavalcorp, and was arrested shortly thereafter.
At the sentencing on January 10, 2013, DUNLAP faced an advisory United States Sentencing Guideline range of 6 to 12 months in prison. Upon motion of the United States, however, the Court upwardly departed and varied to a sentence of 21 months in prison, citing the inadequacy of the defendant’s criminal history category and the need to deter DUNLAP and others from this type of offense. Investigation of this case was conducted by the United States Marshals Service. Assistant United States Attorney William M. Gilmore represented the United States.
Former Staff Sergeant Sentenced for Stealing Public Money Earmarked for Her Military UnitRead the Press Release
NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today NANCY NICOLE SMITH, 27, of Columbia, South Carolina, was sentenced by United States District Judge Louise W. Flanagan to 20 months imprisonment, restitution of $100,000, and 3 years of supervised release. SMITH previously pled guilty to theft of government money in violation of Title 18, United States Code, Section 641, and to bulk cash smuggling in violation of Title 31, United States Code, Section 5332.
Mr. Walker stated, “SMITH abused a position of trust and betrayed the trust of the American taxpayers, including her fellow service members, when she stole $100,000 of U.S. funds earmarked for her military unit. The sentence imposed today reflects the seriousness of her offense and should serve as a deterrent for others.”
According to the Criminal Information filed on August 2, 2012, and information in the public record, SMITH was a Staff Sergeant in the United States Army assigned to a Personnel Service Battalion attached to the 7th Special Forces Group based at Fort Bragg, North Carolina. From September 2009 through February 10, 2010, SMITH was deployed to Afghanistan with the 7th Special Forces Group. While deployed, SMITH was a disbursing agent responsible for, among other things, disbursing money and reconciling the books and records. On at least two occasions, SMITH falsified documents in order to steal $100,000 from funds earmarked for her military unit. She thereafter brought the stolen monies, which at the time were concealed in her backpack, back to the United States.
"Nancy Smith stole money intended for urgent projects in a combat zone, betraying her oath and our armed forces. Special Inspector General for Afghan Reconstruction (SIGAR) and our investigative partners are making it clear that those who defraud the U.S. government will be brought to justice," said Special Inspector General John F. Sopko.
"We are very pleased with today's sentencing," said Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit. "Stealing money during a time of war that is intended for such an important cause is reprehensible and we will continue to do everything in our investigative power to bring those responsible to justice."
“By stealing money from her U.S. Army unit while deployed to a combat theater, (former) Staff Sergeant Smith betrayed her position of trust for personal greed and deprived her fellow soldiers of much needed funds. The Defense Criminal Investigative Service continues our aggressive efforts to root out corruption and fraud impacting our Warfighters, and recover stolen taxpayer dollars,” commented Special Agent in Charge John F. Khin, DCIS Southeast Field Office.
Investigation of this case was conducted by the Department of Defense Criminal Investigative Service, the Federal Bureau of Investigation, the Office of the Special Inspector General for Afghanistan Reconstruction, and the United States Army Criminal Investigation Command. Assistant United States Attorney Banumathi Rangarajan is serving as prosecutor for the government.
Cellular Telephone Store Robber SentencedRead the Press Release
GREENVILLE - United States Attorney Thomas G. Walker announced that MARQUAIL EARL MOURING, 23, of Greenville, North Carolina, was sentenced today by Senior United States District Judge Malcolm J. Howard for his role in a cellular telephone store robbery in Greenville in May of 2011. On May 3, 2011, MOURING and two co-defendants robbed, at gunpoint, the U.S. Cellular store on Southwest Greenville Boulevard in Greenville, netting $1,080.00.
On October 15, 2012, MOURING pled guilty to a count 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).
Senior Judge Howard sentenced MOURING to 108 months in prison and 5 years of supervised release. MOURING was also ordered to pay restitution to U.S. Cellular in the amount of $1,080.00.
One other defendant, Julius Deshawn Hobbs of Greenville, was previously sentenced to 132 months for his role in this robbery and two others. The remaining defendant, James Arthur Acklin, Jr. of Greenville, has pled guilty in the case and is pending sentencing at a future date.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenville Police Department. Assistant United States Attorney John Bennett is prosecuting the case.
Part Owner and Founder of Barnes Farming Corporation Pleads to Structuring Currency TransactionsRead the Press Release
RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today CARSON BAKER BARNES, 77, of Rocky Mount, North Carolinapled guilty before Chief United States District Judge James C. Dever III to the following offense: Structuring transactions to evade reporting requirements and aiding and abetting, all in violation of Title 31, United States Code, Section, 5324(a)(3) and (d)(2), and Titles 18, United States Code, Section 2.
U.S. Attorney Walker stated, “This prosecution reflects our office’s commitment to prosecute those persons who cooperate with law enforcement in investigations and then subsequently engage in criminal conduct. Cooperation is not a free pass against future misconduct.”
According to the Criminal Information filed on December 4, 2012, and information in the public record, BARNES came to law enforcement’s attention in connection with the on-going crop insurance fraud investigation in the Eastern District of North Carolina. In January 2010, BARNES agreed to provide information to law enforcement. Subsequently, BARNES engaged in the offense conduct charged in the Criminal Information.
Specifically, in 2012, law enforcement learned that BARNES requested, Ham Farms Inc., structure the payment for sweet potato plants purchased by Ham Farms from Barnes. Specifically, BARNES caused Ham Farms Inc. to issue 24 checks totaling $135,395.00 for two sale dates of June 17, 2011, and June 24, 2011. Checks were issued in the name of BARNES and 2 other persons.
Investigation further revealed that at least one of the payees caused some of the checks to be cashed at different branches of the same bank on the same date; other checks were negotiated over the course of three weeks, with the last check being negotiated on or about July 12, 2011.
BARNES is part owner and founder of Barnes Farming Corporation in Spring Hope, North Carolina.
“At this time of year, when hard-working citizens are sitting down to prepare their tax returns, it is especially disappointing to see the overt steps some individuals will take to hide their taxable funds from the government,” said IRS Criminal Investigation Special Agent in Charge, Jeannine A. Hammett. “IRS-CI is determined to stop those who try to cheat the government, and the facts outlined in today's plea are strong indicators that we can and will find this fraudulent activity.”
The defendant faces a maximum sentence of 10 years imprisonment and/or a $500,000 fine, and 3 years of supervised release. Sentencing is set for the Court’s April 15, 2013, term of court.
The criminal investigation of this case was conducted by the United States Internal Revenue Service – Criminal Investigations, United States Department of Agriculture – Office of Inspector General - Investigations, and United States Department of Agriculture – Risk Management Agency - Special Investigations Branch. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.
Child Counselor Sentenced to 30 Years in Prison for Medicaid Fraud and ArsonRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court yesterday evening, United States District Judge James C. Fox sentenced MICHAEL SHAWN BROWN, 47, of Selma, to 30 years in prison, followed by a 3 year term of supervised release, and restitution totaling $345,302, on charges of Wire Fraud and Aiding and Abetting in violation of Title 18, United States Code, Section 1343, and Arson to Commit a Federal Offense, in violation of Title 18, United States Code, Section 844(h). United States Attorney Walker is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division.
Pursuant to BROWN’s plea of guilty to counts 20 and 24 of the Indictment, BROWN, was a Licensed Professional Counselor employed at the Chadbourne Elementary School, in Chadbourne, North Carolina, while operating a separate counseling business allegedly providing “free” teacher-supervised tutoring services, snacks, transportation services, and youth activities and games to lower income individuals. As part of the process for registering each new participant at BROWN’s separate business, BROWN required his employees to obtain a copy of the participant’s Medicaid card. After the initial meeting during which the Medicaid participants gave over their Medicaid card, however, some participants had no further contact with BROWN. BROWN billed Medicaid as though he had performed “individual psychotherapy” or “group” behavioral health counseling and therapy sessions on the children for as long as two hours on a single day. BROWN pled guilty to wire fraud in connection with a fraudulent billing transmission that occurred on April 13, 2011.
The evidence established that on April 14, 2011, investigators requested access to BROWN’s counseling records. BROWN initially refused, but agreed to meet with investigators at his business on April 18, 2011. The business burned on the night before the meeting. During an interview, BROWN told investigators that the last time he was in his business was at 2:30 pm on the afternoon before the fire. The evidence also established that, BROWN had a relative drive him to the business on the night that the business burned. As a result of the fire investigators were unable to examine whatever records, if any, were located in the business. BROWN’s guilty plea to arson was in aid of the federal felony of obstruction of justice.
As a part of the sentence, BROWN was ordered to make payment of $257,802 in restitution to the North Carolina Fund For Medical Assistance, and $87,500 to the owner of the building that BROWN burned in connection with the offense.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the North Carolina State Bureau of Investigation; the Medicaid Investigation Division of the North Carolina Attorney General’s Office; and the Columbus County Sheriff’s Office. Assistant United States Attorney William Gilmore and Special Assistant United States Attorney Erica Bing represented the government. Ms. Bing is a prosecutor with the North Carolina Department of Justice, Medicaid Investigation Division. Attorney General Roy Cooper has assigned her to the United States Attorney’s Office to prosecute federal health care fraud criminal matters.
Armored Car Robber SentencedRead the Press Release
WILMINGTON - United States Attorney Thomas G. Walker announced that EMMANUEL WALLACE III, of Hurdle Mills, North Carolina, was sentenced yesterday by Senior United States District Judge James C. Fox for his role in the June 23, 2011 robbery of approximately $1,210,440 from a Garda armored vehicle when it was located adjacent to the Washington, North Carolina, Bank of America automated teller machine.
On April 23, 2012 WALLACE pled guilty to Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951, and using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A).
Senior Judge Fox sentenced WALLACE to 252 months (21 years) in prison and 5 years of supervised release. WALLACE was also ordered to pay $963,766.00 in restitution, which reflects the almost $250,000.00 in robbery proceeds recovered to date.
Two other defendants, Charles Moore, Jr. and Lenard Smith, also pled guilty in the case and are pending sentencing at a future date.
This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.
Investigation of this case was conducted by the Federal Bureau of Investigation and the Washington Police Department. Assistant United States Attorney John Bennett is prosecuting the case.