Middle District of North Carolina
Press releases recorded for this federal judicial district.
Defendants Sentenced for Robbing Marston, NC, Post OfficeRead the Press Release
Five subjects sentenced in Greensboro on federal robbery and firearm offenses
GREENSBORO, N.C. – United States Attorney Ripley Rand announced today that Matthew James Owens, Dennis Shaquille Ross, Brandon Letrell McCain, Takai Terrell Roe and Antonio Chrishawn Jones were sentenced in federal court for their involvement in the June 5, 2013, armed robbery of the Marston, NC, Post Office.
Dennis Shaquille Ross, Brandon Letrell McCain, and Takai Terrell Roe each entered the post office and joined in robbing the Post Office with the use of a firearm. Ross, McCain and Roe each pleaded guilty to interference with commerce by robbery and carrying and using a firearm during and in relation to a crime of violence. Ross received a total prison sentence of 155 months; McCain received a total prison sentence of 91 months; and Roe received a total prison sentence of 87 months. Ross received a five-year term of supervised release following his release from confinement, and McCain and Roe each received a three-year terms of supervised release following their release from confinement.
Matthew James Owens and Antonio Chrishawn Jones were involved in the robbery but did not actually enter the post office. Owens pleaded guilty to interference with commerce by robbery and received a 120 month prison sentence. Jones also pleaded guilty to interference with commerce by robbery received a 52 month prison sentence. Owens received a five-year term of supervised release following his release from confinement and Jones received a three-year term of supervised release following his release from confinement.
All five defendants were ordered to pay $1,389.29 in restitution.
The case was primarily investigated by the United States Postal Inspection Service and the Richmond County Sheriff’s Office. Other agencies assisting with the investigation included the North Carolina State Highway Patrol, the Rockingham Police Department, the North Carolina State Bureau of Investigation, the Moore County Sheriff’s Office and the Scotland County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Cliff Barrett.
Owner of Tax Return Preparation Franchise and Health Provider Business Pleads Guilty to Tax Fraud, Healthcare Fraud and Money LaunderingRead the Press Release
WASHINGTON – Claude Arthur Verbal II, formerly of Raleigh, N.C., and now of Miami, pleaded guilty to tax fraud, healthcare fraud and money laundering in two separate cases in federal court, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Ripley Rand for the Middle District of North Carolina. Verbal pleaded guilty to one count of conspiracy to defraud the United States, one count of aiding and assisting the preparation of false tax returns, one count of healthcare fraud and one count of money laundering. The plea was accepted late yesterday by U.S. District Judge Catherine Eagles in Greensboro, N.C., and sentencing was set for Aug. 11, 2014. Verbal faces up to 28 years in federal prison and $850,000 in fines, and has agreed to pay restitution to the Internal Revenue Service (IRS) and Medicaid.
The Tax Case
According to court documents, Verbal was the owner of Nothing But Taxes (NBT), a tax return preparation franchise with 10 branches throughout the state of North Carolina that operated from 2005 to at least 2012. Verbal personally prepared false tax returns for clients of NBT and taught and encouraged his employees to do so as well. Verbal and NBT employees frequently offered clients a dramatically larger tax refund if the clients agreed to make a cash payment to the person who prepared their return. These cash payments were over and above the flat return preparation fee that NBT charged every client, whether or not their return was falsified.
According to court documents, from 2005 to 2007, Verbal personally prepared dozens of false tax returns on a computer at NBT’s location on Fayetteville Street in Durham, N.C. One such return was a 2006 tax return for an NBT client that falsely reported the client had a Schedule C business and a dependent, which Verbal knowingly prepared and electronically filed with the IRS.
According to court documents, the most common types of falsifications at NBT were false dependents, false Schedule C businesses, false tip income, false Earned Income Tax Credits (EITC) and false education credits. Verbal himself falsified returns using these items and taught his managers and line employees how to do so as well. Verbal and many of his employees facilitated the purchase and sale of false dependents at NBT by purchasing the names, dates of birth and social security numbers of individuals from the community for use as false dependents on other NBT clients’ tax returns.
According to court documents, in November 2010, one of Verbal’s employees informed a U.S. Probation Officer of the fraudulent practices at NBT’s location on Fayetteville Street. The probation officer informed Verbal of this fraud and he falsely denied knowledge of it. Afterward, Verbal took steps to keep the profitable Fayetteville Street location open and to continue operating as usual, but to also further distance himself from the fraudulent practices. In order to do this, Verbal transferred the electronic filing privileges for that NBT branch to a nominee. Verbal and others jointly persuaded, a relative of Verbal who allowed Verbal to use their name to apply for new electronic filing privileges for the Fayetteville Street location. In exchange, Verbal and his wife paid the relative $10,000, and the relative had no role in operating NBT, no professional tax experience and no knowledge of the fraud that was occurring at NBT.
Later, in 2012, the IRS shut down electronic filing privileges at all 10 NBT branches due to persistent fraud. Verbal re-applied for electronic filing privileges twice for all NBT locations, first in the name of the relative and, when that attempt failed, in the name of another relative who had no knowledge of NBT’s business.
Related Tax Cases
According to court documents, in a series of related cases in the Middle District of North Carolina, multiple other individuals employed by NBT – including branch managers, return preparers and client recruiters – have also pleaded guilty to charges involving federal tax fraud, fraud, and identity theft crimes. In particular, each of the individuals listed below pled guilty to one count each of wire fraud, aggravated identity theft and aiding and assisting the preparation of false tax returns:
Leslie Brewster, Branch manager, 70 months
Nikki Brewster, Branch manager, 61 months
Tiffany Rogers, Return preparer, 48 months
Dawn Williams, Return preparer, 36 months and one day
Saichelle McNeill, Return preparer, 27 months
Ronald Hairston, Client recruiter, 24 months
Jennifer Bullock, Return preparer, 15 months
According to court documents, in a related case, Rakecia Brame pleaded guilty to wire fraud, aggravated identity theft and aiding and assisting the preparation of false tax returns. Brame, a former social worker with the Alamance County Department Social Services (DSS), admitted to selling the identities of DSS clients to NBT return preparers for use as false dependents on tax returns.
According to court documents, in another related case, Tasha Smith, a former NBT employee who later left and opened her own fraudulent tax return preparation businesses, pleaded guilty on April 8, 2014, to conspiracy to defraud the United States.
“The tax fraud committed by Claude Verbal and the other Nothing But Taxes defendants is an affront to honest, hard-working taxpayers,” said Assistant Attorney General Kathryn Keneally of the department’s Tax Division. “The Justice Department will prosecute and seek just punishment against those who prepare fraudulent tax returns.”
“Today, Mr. Verbal admitted to owning a tax preparation business that blatantly ignored the tax laws by preparing false tax returns and misusing his electronic filing privileges,” said Chief of IRS-Criminal Investigation Richard Weber. “Dishonest return preparers use a variety of methods to cheat the government, including falsifying information on the tax returns to generate larger refunds for their clients. Criminal Investigation will continue to ensure that all tax practitioners, tax preparers and others who practice in the tax law profession adhere to professional standards and follow the law.”
The Healthcare Fraud Case
According to court documents, Verbal was the owner and operator of Infinite Wellness Concepts (IWC), a Medicaid behavioral health provider with locations in Burlington, Durham and Greensboro, N.C. IWC was contracted to provide group therapy, intensive in-home services, enhanced mental health and substance abuse services. Court documents state that Verbal acquired at least one million dollars in fraudulently obtained funds from the Medicaid program. The fraudulent activities included:
• Changing diagnosis codes so that codes with higher reimbursement rates could be billed;
• Falsely inflating the number of clients treated during group therapy;
• Billing for services not rendered and submitting false treatment notes in support of the services not rendered using forged signatures from counselors and therapists,
• Unqualified personnel conducting therapy; and
• Creating fraudulent clinical assessments and creating clinical assessments prepared and signed by unqualified preparers.
According to court documents, Verbal used the proceeds of the tax and healthcare fraud schemes to make extensive purchases of luxury cars, homes and jewelry. The money laundering charge to which Verbal pleaded guilty relates to the purchase of a $52,000 diamond ring with the proceeds of healthcare fraud.
In the course of the health care fraud investigation, law enforcement authorities seized $765, 917 from bank accounts controlled by Verbal, a 2011 Toyota Camry and four pieces of diamond jewelry, including a 7-carat diamond ring. The United States initiated a civil forfeiture action alleging the properties constituted proceeds traceable to the health care fraud and on Sept. 19, 2013, Judge Eagles entered an order forfeiting the property to the government.
“Mr. Verbal’s fraudulent schemes victimized taxpayers in multiple ways, damaging Medicaid, the patients who rely on it, and the taxpayers who support it,” said U.S. Attorney Rand. “Stopping these fraudulent activities is a priority of the Department of Justice, and we are committed both to bringing the fraudsters to justice and returning the ill-gotten gains to the victimized agencies.”
“The improper billing of the N.C. state community mental health program by unscrupulous providers will not be tolerated,” said Derrick Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. “This costs taxpayers millions of dollars each year and drains the Medicaid program of much needed resources.”
The tax case against Verbal was investigated by agents of IRS - Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Frank Chut and Trial Attorney Jonathan Marx of the Tax Division. The healthcare fraud case against Verbal was investigated by agents of the Department of Health and Human Services, Office of Inspector General, the North Carolina State Bureau of Investigations, the North Carolina Department of Justice’s Medicaid Investigations Division and IRS – Criminal Investigation, and was prosecuted by Assistant U.S. Attorney Robert Hamilton.
Suspect in Shooting of Highway Patrol Officer Pleads Guilty to Federal ChargeRead the Press Release
GREENSBORO, N.C. – United States Attorney Ripley Rand announced today that Mikel Edward Brady, age 23, of Durham, North Carolina, received a prison term for possession of a firearm by a felon.
On February 21, 2014, Chief United States District Judge William L. Osteen, Jr. sentenced Brady to 480 months in prison followed by 5 years of supervised release.
On February 18, 2013, a vehicle operated by Brady was stopped on Highway 70 in Durham, NC by North Carolina State Highway Patrolman Michael Potts. Brady shot Trooper Potts twice before fleeing. Brady was apprehended the following day. Potts sustained multiple injuries and recently returned to duty. Brady is currently serving a state court sentence of more than twenty-four years for shooting Trooper Potts with the firearm Brady possessed illegally.
“We will continue to work together closely and effectively with state and local law enforcement to fight violent crime,” said United States Attorney Rand. “We are dedicated to making sure that those who possess guns illegally and commit crimes with those guns receive just punishment.”
The case was investigated by the Durham Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Special Assistant United States Attorney Kyle Pousson.
Moore County Residents, Company Indicted for Conspiracy to Defraud the United States GovernmentRead the Press Release
GREENSBORO, N.C. – United States Attorney Ripley Rand announced today that Craig Stanford Eury, Jr., Sarah Elizabeth Farrell, and International Labor Management Corporation (ILMC) were indicted by a federal grand jury in Greensboro, North Carolina, for allegedly (1) obtaining Visas by fraud, (2) encouraging and inducing aliens to enter and reside in the United States for commercial advantage or private financial gain, and (3) performing monetary transactions with criminal proceeds. Eury and Farrell served as officers of ILMC.
The indictment alleges that Eury, Farrell, and ILMC engaged in fraudulent practices in obtaining H-2B Visas and H-2A Agricultural Visas. The H-2B Visa Program includes a statutory numerical limit, or "cap," which provides that a maximum number of 66,000 aliens may be issued a visa or otherwise provided H-2B status (including through a change of status) during any fiscal year. ILMC allegedly avoided the operation of the cap by obtaining extra visas. These extra visas were allegedly used to provide H-2B workers to employers who were barred by the cap from employing alien workers. As set forth in the Indictment, ILMC profited by charging clients both for obtaining the visas for the original employer and then “transferring” the visas to a new, cap-barred employer. By acquiring extra visas, ILMC allegedly gained an unfair market advantage on H-2B Visas, as those visas were then not available for employers who complied with the law.
“This Indictment against International Labor Management Corporation founder and owner Craig Stanford Eury, Jr., and President Sarah Elizabeth Farrell sends a strong message to those who would attempt to commit these types of crimes. Diplomatic Security is firmly committed to working with the U.S. Attorney’s Office, the Department of Labor, the Internal Revenue Service, as well as other law enforcement agencies, to investigate and bring those who commit these crimes to justice,” said Niall Meehan, Special Agent in Charge of the Washington Field Office of the U.S. Department of State’s Diplomatic Security Service.
The case is being investigated by the U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; U.S. Department of State’s Diplomatic Security Service, and the Internal Revenue Service, Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Frank Chut.
An Indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Jamestown Woman Receives Prison Term for Wire FraudRead the Press Release
GREENSBORO, N.C. – United States Attorney Ripley Rand announced that Angela Womack, age 51, of Jamestown, North Carolina, received a prison term on multiple counts of wire fraud and money laundering.
On January 17, 2014, United States District Judge Catherine C. Eagles sentenced Womack to 70 months in prison followed by three years of supervised release, and ordered her to pay restitution of $2,857,201.85 and a special assessment of $300.00. Womack will begin serving her sentence not later than March 7, 2014.
Womack worked as the Accounts Payable Manager of Carolina Steel Group, LLC, a business located in Guilford County. As Accounts Payable Manager, Womack prepared the company’s reports to provide that vendors would be paid.
While working at Carolina Steel Group, Womack opened non-profit accounts in the name of “IBOCF.” Unbeknownst to her employer, Womack created vendor checks payable to “International BOCF” even though this company was not a vendor to Carolina Steel Group, and also caused additional checks payable to “International BOCF” to be included on the company’s vendor reports. Womack then ensured that banks would honor the company’s checks (including the fraudulent ones) by uploading additional fraudulent reports to a financial clearinghouse website.
In an attempt to hide her scheme, Womack changed internal accounting entries so that the checks to “International BOCF” appeared to be written to legitimate vendors of Carolina Steel Group and altered internal accounting data using another employee’s access codes. Womack deposited fraudulently obtained checks into the “IBOCF” account she controlled, and used the funds from that account for her own benefit.
This case was investigated by agents of the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant United States Attorney Robert Hamilton.
Social Worker Pleads Guilty to Identity Theft, Tax CrimesRead the Press Release
WASHINGTON – Rakecia Matrese Brame, formerly of Greensboro, N.C., and now of Grand Prairie, Texas, pleaded guilty on Jan. 10, 2014, to identity theft, tax, and fraud charges, the Department of Justice and the Internal Revenue Service (IRS) announced today. Brame pleaded guilty to one count of wire fraud, one count of aggravated identity theft and one count of aiding and assisting the preparation of a false tax return. U.S. District Judge Thomas Schroeder for the Middle District of North Carolina set a sentencing hearing for May 16, 2014.
According to court documents, from approximately February 2009 to February 2011, Brame was employed as a social worker at the Alamance County Department of Social Services (Alamance DSS) in North Carolina. Brame was responsible for investigating claims of abuse and neglect against minors and disabled adults. As part of her official duties, Brame had authorized access to extensive identifying information – including names, dates of birth and Social Security numbers - of Alamance DSS clients, including abuse victims and recipients of various state benefits, and of witnesses in official investigations.
According to court documents, Brame used her access to identifying information contained in Alamance DSS records to illegally obtain the personal identifying information of Alamance DSS clients and others. Pursuant to an ongoing agreement, Brame sold that personal identifying information to Jennifer Bullock and Saichelle McNeill, two return preparers at the Greensboro branch of Nothing But Taxes, a tax return preparation firm. Bullock and McNeill used the stolen identities to claim false dependents on tax returns they prepared for Nothing But Taxes clients, thereby claiming inflated tax refunds on the clients’ behalf. Bullock and McNeill paid Brame $200 to $300 per identity they purchased, and Brame knowingly sold these identities to Bullock and McNeill to be used for tax fraud.
Court documents state that, as a social worker, Brame owed a legal and professional duty to keep the information she learned about victims and witnesses confidential. She had no authority to sell such information or otherwise use it for personal gain, and doing so violated the professional standards applicable to social workers, as well as federal and state law and Alamance DSS policy.
According to court documents, one victim of the identity theft scheme was referred to Alamance DSS for investigation on or about Feb. 15, 2010, and assigned to Brame. A few days later, Brame sold this victim’s identity to Bullock for use as a false dependent on a tax return. On or about March 3, 2010, Bullock prepared a 2009 tax return for a Nothing But Taxes client which falsely claimed that the victim was a dependent. As a result of the falsification, the tax return claimed a higher tax refund than the Nothing But Taxes client was actually entitled to receive. Approximately one year later, Brame sold the victim’s identity and that of her sister to McNeill, who then prepared 2010 tax returns for two different Nothing But Taxes clients that falsely claimed both victims as dependents.
Brame faces a statutory maximum of 20 years in prison on the wire fraud charge and a maximum of three years in prison for the charge of aiding and assisting in the preparation of a false tax return. The aggravated identity theft charge carries a mandatory two year sentence, which must run consecutively to any sentence on the other charges.
The related case against McNeill resulted in a guilty plea to federal criminal charges of wire fraud, aggravated identity theft and aiding and assisting in the preparation of false tax returns. McNeill was sentenced to serve 27 months in federal prison on Aug. 20, 2013. Brame’s co-defendant Bullock pleaded guilty to wire fraud, aggravated identity theft and tax charges on Dec. 4, 2013, and she is currently awaiting sentencing.
This case and related Nothing But Taxes cases were investigated by agents of the IRS -Criminal Investigation and were prosecuted by Assistant U.S. Attorney Frank Chut and Trial Attorney Jonathan Marx of the Tax Division. The prosecution team wishes to thank the Alamance DSS for their assistance and cooperation in the investigation.
Middle District of North Carolina United States Attorney’s Office Collects $2,643,276.87 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2013Read the Press Release
GREENSBORO, N.C. – United States Attorney Ripley Rand announced today that the Middle District of North Carolina collected $2,643,276.87 in criminal and civil actions during Fiscal Year 2013. Of this amount, $1,381,953.47 was collected in criminal actions and $1,261,323.40 was collected in civil actions
Additionally, Middle District of North Carolina worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,062.00 in criminal actions pursued jointly with these offices.
Attorney General Eric Holder announced on Thursday that the Justice Department collected approximately $8.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2013. The more than $8 billion in collections in FY 2013 represents nearly three times the appropriated $2.76 billion budget for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.
“The Department’s enforcement actions help to not only ensure justice is served, but also deliver a valuable return to the taxpayer,” said Attorney General Holder. “It is critical that Congress provide the resources necessary to match the Department’s mounting caseload. As these figures show, supporting our federal prosecutors is a sound investment.”
“Our employees work very hard every day to collect money owed to crime victims and to the government,” said U.S. Attorney Rand. “These are tough economic times for everyone, and we will continue to focus on collections efforts to seek justice for crime victims and hold accountable those who seek to profit from illegal activity.”
The U.S. Attorney’s Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s Office in Middle District of North Carolina, working with partner agencies and divisions, collected $2,621,465.00 in asset forfeiture actions in FY 2013. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund and Department of Treasury Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Rowan County Men Plead Guilty to Train RobberyRead the Press Release
GREENSBORO, N.C. – Three Rowan County men have entered guilty pleas related to a Salisbury train robbery that occurred in 2012, announced United States Attorney Ripley Rand.
ALTISE SHAHEED BRIDGES, 25, of China Grove, North Carolina, and WILLIAM JAMES JOHNSON, JR., 20, of Salisbury, North Carolina, pleaded guilty to train robbery on December 11, 2013. KENYAD LAQUAN KELLY, 19, of Salisbury, North Carolina, pleaded guilty to accessory after the fact to train robbery on December 3, 2013.
According to court documents, two masked men carrying firearms climbed aboard a Norfolk Southern train traveling from Columbia, South Carolina, to Asheville, North Carolina, on April 29, 2012, while the train was stopped at the station in Salisbury for a crew change. When the robbers entered the engine car, one of the robbers brandished a shotgun while another brandished a revolver. The robbers demanded money from the train engineer and conductor and took cash and a wallet before fleeing. Subsequent investigation determined that BRIDGES and JOHNSON committed the robbery and that KELLY assisted in destroying and hiding evidence.
The guilty pleas were accepted by United States District Judge Catherine C. Eagles. The maximum punishment for BRIDGES and JOHNSON is twenty years imprisonment, a $250,000 fine, and three years of supervised release. The maximum punishment for KELLY is ten years imprisonment, a $125,000 fine, and three years of supervised release. Sentencing for both BRIDGES and JOHNSON is set for March 25, 2014, while KELLY’s sentencing is scheduled for March 19, 2014.
The case was investigated by the Salisbury Police Department, the Norfolk Southern Police Department, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Terry Meinecke.
Winston-Salem Man Sentenced for Gun Smuggling and Firearm OffensesRead the Press Release
Lengthy prison term orderedGREENSBORO, N.C. – A Winston-Salem man was sentenced to 157 months in prison for his role as the leader of a smuggling ring funneling firearms and ammunition to Mexico from North Carolina, announced United States Attorney Ripley Rand.
Angel Medel Lorenzo, 56, of Winston-Salem, North Carolina, had pleaded guilty to conspiring to smuggle firearms and firearm accessories to Mexico and possession of a firearm in furtherance of a drug trafficking offense. He was sentenced by Chief United States District Judge William L. Osteen, Jr., to 157 months imprisonment followed by 5 years of supervised release.
During an investigation conducted by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Winston-Salem Police Department (WSPD), officers seized multiple firearms, firearm scopes, and hundreds of rounds of ammunition. As part of a drug investigation by the WSPD’s Special Investigations Division, detectives searched Medel Lorenzo’s residence on October 19, 2011, and found multiple handguns, rifles, ammunition, cocaine, digital scales and rifle scopes. In July 2012, a reliable FBI Confidential Informant (CI) provided information that Medel Lorenzo was organizing a load of firearms to be smuggled into Mexico from Winston-Salem, NC. Thereafter, law enforcement monitored a meeting between Medel Lorenzo, the CI, and other members of the smuggling conspiracy concerning the planned shipment of a 16-gun load of firearms to Guerrero, Mexico.
On July 24, 2012, authorities executed a federal search warrant at the residence of co-defendant Ramiro Alejandro Garcia Roman on East Sprague Street in Winston-Salem and recovered a shipment of 16 firearms, hundreds of rounds of ammunition, and other firearms accessories wrapped in plastic and black electrical tape. The investigation revealed that Medel Lorenzo had been smuggling firearms to Mexico since February of 2011 and that he used his teenage children to assist in packaging the firearms for transport. Co-defendants Ramiro Garcia Roman and Medel Lorenzo’s daughter, Inocensia Medel Banos, were each sentenced in July of 2013 to 46 months in federal prison for their roles in the smuggling conspiracy.
“The drug cartels of Mexico have shown countless times they have very little regard for human life,” said Special Agent in Charge Brock D. Nicholson, head of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Georgia and the Carolinas. “Without question, the defendant was trying to get the weapons and ammunition seized in this case into Mexico to be used by these same cartel members. We are thankful for the help from the FBI, ATF, the Winston-Salem Police Department and the U.S. Attorney’s Office in putting a dangerous man in prison and in stopping this smuggling scheme.”
“This prosecution is a testament to the results that can be achieved through coordinated investigative efforts by the law enforcement community,” said United States Attorney Ripley Rand. “Choking off the illegal export of firearms by prosecuting smugglers is important in reducing the threat that the guns will be used in violent crime. HSI, FBI, ATF and the Winston-Salem Police Department all played critical roles in exposing this gun smuggling network, enabling our office to successfully prosecute this organization.”
This case was prosecuted by Assistant United States Attorney Randall S. Galyon.
Asheboro Resident Pleads to Federal Program FraudRead the Press Release
GREENSBORO, N.C. –TIFFANIE ANNETTE WILSON of Asheboro, North Carolina, pleaded guilty today to a felony fraud charge in federal court in Greensboro, announced Ripley Rand, United States Attorney for the Middle District of North Carolina.
WILSON, age 38, pleaded guilty to felony charges of both conspiracy to embezzle money and embezzling money from an organization receiving federal funds. Wilson was the Director of the Weatherization Assistance Program for Regional Consolidated Services [RCS]. RCS is an Asheboro nonprofit organization that during WILSON’s leadership administered a federally-funded program to help low-income North Carolinians save energy and reduce utility costs through making homes more energy efficient.
WILSON pleaded guilty to conspiring to embezzle and embezzling funds from RCS. According to court documents, WILSON’s embezzlement resulted in a loss of between $300,000.00 and $400,000.00 to the federal program.
WILSON faces a maximum penalty of ten years confinement in federal prison for the fraud convictions. The plea agreement also requires WILSON to make restitution. Sentencing will occur in Greensboro on March 11, 2014, before Chief United States District Judge William L. Osteen, Jr.
The case was investigated by the Federal Bureau of Investigation, the Department of Energy/Office of Inspector General, and the North Carolina State Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Robert M. Hamilton.
Orange County Resident Pleads Guilty to Theft of Government Property from the Department of Veterans AffairsRead the Press Release
Served as a Fiduciary for Disabled VeteranGREENSBORO, N.C. –A Rougemont, North Carolina, man pleaded guilty today in federal court to theft of government property, announced United States Attorney Ripley Rand.
BASIL D. HALLIDAY, age 51, pleaded guilty before United States Disrrict Judge Catherine C. Eagles to theft of government property in connection with his role as fiduciary for a relative who was a disabled veteran. A fiduciary is a guardian appointed by the Secretary of the Department of Veterans Affairs to use funds provided by the Department of Veterans Affairs for the benefit of a veteran. Halliday became a fiduciary for the veteran on March 21, 2007. The Indictment in this case indicates that, from June 1, 2007, until on or about July 30, 2010, Halliday stole approximately $44,000.00 in funds provided by the Department of Veterans Affairs solely for the intended benefit of the disabled veteran.
The defendant faces a maximum penalty of ten years confinement. The plea agreement also requires the defendant to make restitution to the Department of Veterans Affairs. Sentencing will occur in Greensboro on February 27, 2014, before Senior United States District Judge N. Carlton Tilley, Jr.
The case was investigated by the Department of Veterans Affairs, Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Robert Hamilton.
North Carolina Businessman Sentenced for Tax FraudRead the Press Release
WASHINGTON – William Robert Hupman Jr., of Mebane, N.C., was sentenced to serve 17 months in prison followed by one year of supervised release for tax fraud today, the Justice Department and the Internal Revenue Service (IRS) announced. Hupman was also ordered to pay restitution to the IRS of $103,420.
Hupman pleaded guilty on May 31, 2013, to corruptly endeavoring to obstruct or impede the due administration of the Internal Revenue laws. According to court documents and court proceedings, Hupman managed and controlled Security Concepts LLC (SC), a security alarm company based in Mebane, N.C. Instead of receiving a salary from SC, Hupman received income by using an SC debit card to pay his expenses. Despite receiving over $770,000 in such fees between 2007 and 2011, Hupman has not filed an individual income tax return since tax year 2006.
Court documents indicate that in addition to his failure to comply with his personal income tax responsibilities, Hupman also failed to comply with his employment tax responsibilities at SC. As the person who managed and controlled SC, Hupman was responsible for withholding employment taxes and paying them over to the IRS on a periodic basis. SC last paid over employment taxes and filed the required tax form for the third quarter of 2009, despite the fact that employment taxes were actually withheld from the wages of SC employees. Hupman did not pay employment taxes or file the required tax form for the fourth quarter of 2009 or any of the quarters in 2010 and 2011. He also has not paid the federal unemployment taxes owed or filed the required tax form for years 2009, 2010 or 2011. According to court documents and court proceedings, the criminal tax loss was $103,420.
Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, thanked Special Agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Todd Ellinwood and Kevin Lombardi for prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Justice Department to File Lawsuit Against the State of North Carolina to Stop Discriminatory Changes to Voting LawRead the Press Release
WASHINGTON – The Justice Department announced today that it intends to file a lawsuit against the State of North Carolina, the North Carolina State Board of Elections, and the Executive Director for the State Board of Elections over recent voting changes made by North Carolina House Bill 589, which was signed into law in August 2013. The United States’ complaint challenges provisions of House Bill 589 under the non-discrimination requirements of Section 2 of the Voting Rights Act.
"By restricting access and ease of voter participation, this new law would shrink, rather than expand, access to the franchise,” said Attorney General Eric Holder. “Allowing limits on voting rights that disproportionately exclude minority voters would be inconsistent with our ideals as a nation. Whenever warranted by the facts and the law, the department will not hesitate to use the tools and legal authorities at our disposal to fight against racial discrimination, to stand against disenfranchisement, and to safeguard the right of every eligible American to cast a ballot."
The United States’ complaint contends that at least four provisions of House Bill 589 were adopted with the purpose, and will have the result, of denying or abridging the right to vote on account of race, color, or membership in a language minority group. The complaint asks the court to prohibit North Carolina from enforcing these requirements, and also requests that the court order bail-in relief under Section 3(c) of the Voting Rights Act. If granted, this would subject North Carolina to a new preclearance requirement.
House Bill 589 imposes a number of restrictions on voting that will deny or abridge the right of minority voters to participate in the political process. Over the years, voter participation rates in North Carolina have steadily increased as the state adopted election practices and procedures that made voting more accessible to more voters. In the November 2008 and November 2012 general elections, for example, African-American voters dramatically increased their participation rates and heavily relied on early voting in North Carolina. In the November 2008 and November 2012 general elections, about 71 percent of all African Americans who cast ballots in North Carolina during those elections voted during the early voting period.
Although the prior system encouraged expanded voter participation, the state legislature chose in 2013 to adopt numerous barriers to voting and to eliminate voter-friendly practices. Additionally, the state waited to adopt many of these changes until after the Supreme Court’s recent decision in Shelby County v. Holder, which held that certain jurisdictions, including 40 counties in North Carolina, were no longer required to obtain preclearance of voting changes prior to their implementation.
The complaint cites several provisions of House Bill 589. In particular, it cites: the elimination of the first week of early voting, which reduces the total number of days of early voting (from 17 days to 10 days); the elimination of same-day voter registration during the early voting period; the prohibition on counting certain provisional ballots; and the failure to provide adequate safeguards for voters who lack the limited types of acceptable photo identification cards that will be required in future elections. The first three changes are scheduled to take effect in 2014, and the last change will take effect in 2016.
Based on the state’s own data, all four changes will have a discriminatory impact on minority voters, who disproportionately have relied on the first seven days of early voting, the same-day registration process and past practices regarding the counting of certain provisional ballots in order to participate in the elections process. In addition, the State Board of Elections released a report earlier this year showing that African-Americans disproportionately lacked photo identification cards issued by the state’s Department of Motor Vehicles. Despite knowledge of this report, the legislature adopted a strict photo identification requirement that lacks the types of protections for voters without identification that are common in other states that require voter identification. Minority voters will disproportionately face obstacles and barriers to obtaining certain permitted photo identification cards that are now required to vote, and the State has failed to provide adequate protections to ensure that these voters will not be disenfranchised by the new law.
“The right to vote is one of the sacred rights that we hold dear as a nation,” said Jocelyn Samuels, Acting Assistant attorney General for the Justice Department’s Civil Rights Division. “The Department of Justice will use all the tools it has available to ensure that each citizen can cast a ballot free from discrimination. North Carolina adopted these changes in a rushed process, despite evidence before the legislators that a number of these changes will harm minority voters.”
“The United States Attorneys for all three districts in North Carolina support today’s action to protect the rights of all eligible North Carolinians to exercise the right to vote free from discrimination,” said United States Attorney Ripley Rand of the Middle District of North Carolina. “Anne Tompkins of the Western District, Thomas Walker of the Eastern District and I will ensure that our respective offices provide whatever support and assistance is needed to pursue this important voting rights case.”
If the federal court in this case finds that the State of North Carolina should be covered by Section 3(c), then the state would be required to submit voting changes to the U.S. Attorney General or to the federal court for review prior to implementation, to ensure that the changes do not have a discriminatory effect or a discriminatory purpose.
More information about the Voting Rights Act and other federal voting laws is available on the Department of Justice’s website at www.justice.gov/crt/about/vot. Complaints about discriminatory voting practices may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
North Carolina Woman Sentenced for Preparing False Tax Returns and Identity FraudRead the Press Release
WASHINGTON – The Justice Department and the Internal Revenue Service (IRS) announced that yesterday Leslie Louise Brewster of Durham, N.C. was sentenced to serve 70 months in federal prison for crimes related to preparing false tax returns and identity fraud. She was also ordered to pay restitution to the IRS of $92,910. Brewster was sentenced by Chief U.S. District Judge for the Middle District of North Carolina William Osteen Jr., in Greensboro, N.C.
On Feb. 20, 2013, Brewster pleaded guilty to three felonies relating to her preparation of false tax returns: one count of aiding and assisting the preparation of a false tax return; one count of wire fraud; and one count of aggravated identity theft.
According to court documents, Brewster was the manager of the Burlington, N.C. branch of Nothing But Taxes, a tax return preparation franchise with locations throughout North Carolina. Brewster falsified federal income tax returns for hundreds of Nothing But Taxes clients in order to obtain larger tax refunds for the clients than they were actually entitled to receive. The returns Brewster prepared for clients reported, among other items, false dependents, fictitious businesses and bogus education credits.
Brewster also purchased personal identifying information, including names and Social Security numbers, from members of the community. Brewster used this personal identifying information to claim false dependents on tax returns she prepared for clients, and provided some of the identities she purchased to other return preparers at Nothing But Taxes’ Burlington location for their use in a similar fashion. Brewster typically charged Nothing But Taxes clients a cash fee, above Nothing But Taxes’ normal flat fee for preparation of a return, to prepare a return containing false dependent information.
Recently, two defendants in related cases were also sentenced to prison for tax crimes arising out of the Nothing But Taxes scheme. Saichelle McNeill, a return preparer at the Greensboro branch of Nothing But Taxes, was sentenced to serve 27 months in prison on Aug. 20, 2013. McNeill previously pleaded guilty to wire fraud, aggravated identity theft and aiding and assisting the preparation of a false tax return. Tiffany Rogers, a return preparer at the Burlington branch of Nothing But Taxes, was sentenced to serve 48 months incarceration on Aug. 14, 2013. Rogers previously pleaded guilty to wire fraud, aggravated identity theft, willfully filing a false personal income tax return and aiding and assisting the preparation of a false tax return.
Two other Nothing But Taxes employees, Nikki Brewster and Dawn Williams, are currently awaiting sentencing in the U.S. District Court for the Middle District of North Carolina. Each of them pleaded guilty to wire fraud, aggravated identity theft and aiding and assisting the preparation of false tax returns. Court documents associated with their respective guilty pleas allege that Nikki Brewster was the manager of a Nothing But Taxes branch in Durham, N.C., while Dawn Williams was a return preparer at the Burlington branch.
Court documents in the cases of Nikki Brewster, Dawn Williams, Tiffany Rogers, and Saichelle McNeill stated that those defendants, like Leslie Brewster, also prepared false tax returns for Nothing But Taxes clients, and committed identity theft by claiming false dependents on clients’ tax returns.
“The Justice Department will investigate and prosecute fraudulent tax return preparers and those who steal identities to use in their tax fraud, whether the crime is committed by a single thief or a ring of thieves,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “The prison sentence handed down today demonstrates that such invasions of personal privacy and theft of public monies will not be tolerated.”
Ripley Rand, U.S. Attorney for the Middle District of North Carolina, said, “We thank the Criminal Investigative Division of the IRS for their hard work in dismantling this tax fraud syndicate. We will continue to hold those accountable who attempt to cheat the government and place the burden of their fraud on lawful taxpayers.”
This case and the related Nothing But Taxes cases are being investigated by special agents of the IRS- Criminal Investigation Division, and are being prosecuted by Assistant U.S. Attorney Frank Chut and Trial Attorney Jonathan Marx of the Justice Department’s Tax Division.
Mount Airy Man Sentenced for Filing False Tax ReturnsRead the Press Release
GREENSBORO, N.C. – A Mount Airy man was sentenced to 30 months of imprisonment for filing false tax returns, announced United States Attorney Ripley Rand.
JEFFREY LEE JOHNSON, 45, of Mount Airy, North Carolina, had pleaded guilty to two counts of filing false tax returns. Johnson was sentenced on September 13, 2013, by United States District Judge Catherine C. Eagles to 30 months in prison followed by one year of supervised release. Judge Eagles also ordered JOHNSON to pay restitution of $2,495,721 to the Internal Revenue Service.
From January 2005 through February 2010, JOHNSON owned and operated Mayberry Auto Parts and Recycling, Inc. (“MAPR”). MAPR was in the business of purchasing scrap metal from individuals and reselling it to larger scrap metal companies. JOHNSON filed tax returns for 2006 and 2007 with gross receipts of $799,228 and $820,000, respectively. JOHNSON knew at that time he filed those returns that he had received hundreds of thousands of dollars in excess of those amounts in both years. The investigation of the Internal Revenue Service confirmed that MAPR earned gross receipts of $4 million in 2006 and $5 million in 2007.
Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service – Criminal Investigative Division, stated that “the successful prosecution of individuals who intentionally conceal income and evade taxes helps instill confidence in the American tax system. Mr. Johnson admitted he deliberately underreported his income, thereby placing an additional burden on the honest taxpayer.” United States Attorney Rand added, “Our office will continue to work effectively in partnership with the Internal Revenue Service to root out fraud and hold accountable those who flout our tax laws.”
JThe case was investigated by the Internal Revenue Service -- Criminal Investigation Division, and prosecuted by Assistant United States Attorney Stephen Inman.
Durham Man Sentenced for Distributing Child PornographyRead the Press Release
Lengthy prison term orderedGREENSBORO, N.C. – A Durham man was sentenced today to 190 months in prison for distribution of child pornography, announced United States Attorney Ripley Rand.
Jack Steven Vanlaar, 56, of Durham, North Carolina, had pleaded guilty to one count of distribution of child pornography, an offense punishable by no less than 5 years and no more than 20 years imprisonment. He was sentenced by United States District Judge Catherine C. Eagles to 190 months imprisonment followed by 15 years supervised release. Judge Eagles also ordered Vanlaar to forfeit two computers used in the offense.
The offense was committed between November 23, 2012, and February 23, 2013, using the peer-to-peer file sharing network GigaTribe. Vanlaar was reported by a social networking site to the National Center for Missing and Exploited Children after an image of suspected child pornography was posted on that website. That information led to an investigation by the United States Postal Inspection Service, who seized and analyzed Vanlaar’s computer equipment after obtaining a federal search warrant.
This case was prosecuted by Assistant United States Attorney Anand P. Ramaswamy and brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Alamance County Residents Sentenced for Health Care FraudRead the Press Release
Ordered to serve prison time and pay restitutionGREENSBORO, N.C. – United States Attorney Ripley Rand of the Middle District of North Carolina announced today that two Alamance County residents have been sentenced to prison for defrauding the Medicaid program.
EVELYN FULLER, 61, and MICHAEL McLEAN, 57, were sentenced by United States District Judge Catherine Eagles in federal court in Greensboro, North Carolina, on Tuesday, August 27, 2013. FULLER was sentenced to 26 months imprisonment. Her co-defendant, McLEAN, was sentenced to 36 months imprisonment. FULLER and McLEAN were also ordered to pay restitution to the Medicaid program in the amount of $399,811.44. Both FULLER and McLEAN will serve three years of supervised release after serving their prison sentences.
FULLER and McLEAN plead guilty on February 27, 2013, to health care fraud charges in connection with a scheme to defraud the North Carolina State Medicaid program in connection with community support services. Both worked for a company called Harvest House Community Development Corporation, through which they submitted false claims to the Medicaid program for community support services which were not actually rendered. Community support services are rehabilitative services for eligible children and adults in which the clinical and diagnostic needs of the clients are arranged, coordinated, and monitored.
The case was prosecuted by Assistant United States Attorney Robert M. Hamilton and Special Assistant United States Attorney and Assistant Attorney General Jacqueline Perez of the Medicaid Investigations Division of the North Carolina Attorney General’s Office. The case was investigated by the North Carolina Medicaid Investigations Division and the Office of the Inspector General of the United States Department of Health and Human Services.
Three Members and One Associate of Violent North Carolina Latin Kings Gang Sentenced to PrisonRead the Press Release
WASHINGTON – Three members and one associate of the North Carolina Almighty Latin King/Queen Nation (ALKQN) have been sentenced this week in federal court in the Middle District of North Carolina.
The announcement was made today by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Ripley Rand of the Middle District of North Carolina; Special Agent in Charge John A. Strong of the FBI’s Charlotte Division; Chief of the Greensboro, N.C., Police Department Ken Miller; and B.J. Barnes, Sheriff of Guilford County, N.C.
"The leader of this gang cynically masqueraded as a public figure dedicated to positive social change, but make no mistake: his intentions were evil, and he exploited the good intentions of others, including children. Our community is better off because he and the other defendants face lengthy sentences," said United States Attorney Rand. "This case is a compelling example of the power of effective partnership between federal, state, and local authorities, and we thank the many agencies who worked with us to bring these violent offenders to justice. We will continue to work together to promote the safety of the citizens of North Carolina, and to make sure that those who ignore our laws are punished accordingly."
U.S. District Court Judge James A. Beaty, Jr., sentenced the following defendants:
- Jorge Peter Cornell, 36, of Greensboro, N.C., aka “King Jay,” was sentenced on Aug. 14, 2013, to serve 336 months in prison;
- Jason Paul Yates, 32, originally of Chicago but recently living in North Carolina, aka “King Squirrel,” was sentenced on Aug. 15, 2013, to serve 206 months in prison;
- Steaphan Acencio-Vasquez, 22, of Raleigh, N.C., aka “King Leo,” was sentenced on Aug. 13, 2013, to serve 96 months in prison and three years of supervised release; and
Cornell, the leader of the North Carolina ALKQN, was convicted by a federal jury on Nov. 21, 2012, of racketeering conspiracy, violent crimes in aid of racketeering activity and use of a firearm during and in relation to a crime of violence for an April 2008 assault with a dangerous weapon.
Wilson, an ALKQN associate, was convicted by a federal jury on Nov. 21, 2012, of racketeering conspiracy.
ALKQN members Yates and Acencio-Vasquez previously pleaded guilty to racketeering conspiracy.
According to court documents and evidence presented at trial, the defendants were members and associates of ALKQN, a violent street gang that originated in Chicago in the 1960s and ultimately migrated to cities throughout the United States, including New York City and ultimately Greensboro in 2002. From approximately 2005 until December 2011, ALKQN gang members met on a regular basis to increase their knowledge base of the gang rules; discuss criminal activity and how to deal with rival gangs, including by attempted murder; purchase firearms; circulate firearms for use in criminal activity by other ALKQN members; and engage in violent crimes such as robberies, bank fraud, arson and carjacking. The proceeds of this criminal activity helped to finance the gang’s illegal activities. ALKQN members also attempted to murder members of the gang when they attempted to terminate their membership.
Evidence presented at trial also showed that Cornell conspired with other ALKQN members to commit racketeering acts, including the April 2008 shooting of a rival gang member; the commissioning of no fewer than five Hobbs Act Robberies of businesses located throughout the Greensboro area; the plotting of firebomb attacks on the residences of former ALKQN members; attacks on former ALKQN members; and the killing of former ALKQN members through drive-by shootings. Cornell also provided firearms to members of ALKQN to commit several of these crimes.
ALKQN member Wesley Anderson Williams, who pleaded guilty on Oct. 1, 2012, to racketeering conspiracy, will be sentenced by Judge Beaty on Aug. 20, 2013. Russell Lloyd Kilfoil, an ALKQN member who was convicted by a federal jury on Nov. 21, 2012, will be sentenced on Aug. 28, 2013.
The investigation was a joint operation conducted by the FBI’s Greensboro Field Office; Greensboro Police Department; and the Guilford County Sheriff’s Office.
The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Robert A.J. Lang of the Middle District of North Carolina.
Recidivist Sex Offender SentencedRead the Press Release
Used computer to solicit sex with a minorGREENSBORO, N.C. – A Burlington man was sentenced today to 300 months in prison for coercion and enticement of a minor, announced United States Attorney Ripley Rand.
William Todd Flowers, 37, of Burlington, North Carolina, pleaded guilty on April 9, 2013, to one count of online coercion and enticement of a person under 18 for criminal sexual activity, an offense punishable by no less than 15 years imprisonment. He was sentenced by United States District Judge Thomas D. Schroeder to 300 months imprisonment followed by lifetime supervised release. Flowers was also ordered to forfeit a cell phone and a vehicle used in the offense.
“This case is yet another example of the power of effective partnership between federal, state, and local authorities,” stated United States Attorney Rand. “We will continue to work together to make the internet a safe place for children, and to make sure that those who are intent on using the internet and other technology to abuse children are punished accordingly.”
The offense was committed between June 15, 2012, and October 12, 2012, using a social networking site. Flowers’ activity was reported by that site to the National Center for Missing and Exploited Children, who relayed the information to the Alamance County Sheriff’s Office. At the time of the offense, Flowers was a registered sex offender and on state probation for felony solicitation of a child by computer, having been convicted in Alamance County in 2010.
This case was investigated by members of the North Carolina Internet Crimes Against Children (ICAC) Task Force, including the Alamance County Sheriff’s Office, Federal Bureau of Investigation, and Cherokee County Sheriff’s Office, and prosecuted by Assistant United States Attorney Anand P. Ramaswamy.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.Suspect in Shooting of Highway Patrol Officer Pleads Guilty to Federal ChargeRead the Press Release
Faces up to Ten Years Imprisonment for Firearm OffenseGREENSBORO, N.C. – Mikel Edward Brady II pleaded guilty today to a federal firearm charge, announced Ripley Rand, United States Attorney for the Middle District of North Carolina.
Brady, age 24, of Durham, North Carolina, was indicted on May 28, 2013, for possession of a firearm and possession of ammunition by a convicted felon following an investigation into the February 18, 2013, shooting of Trooper Michael Potts of the North Carolina State Highway Patrol. Brady pleaded guilty to possession of a firearm by a convicted felon. He faces up to ten years imprisonment, up to three years supervised release, and a fine of up to $250,000.
Sentencing is set for November 25, 2013, in Greensboro, before Chief United States District Judge William L. Osteen, Jr. Assault and other charges against Brady related to the shooting of Trooper Potts remain pending in state court.
The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Durham Police Department and is being prosecuted by Special Assistant United States Attorney/Durham County Assistant District Attorney Kyle Pousson.
Randolph County NC Man Sentenced on False Impersonation and Communicating A ThreatRead the Press Release
Obtained sensitive military hardware by pretending to be a Special Forces SergeantGREENSBORO, N.C. – John Joseph Savage, age 50, has been sentenced to eight months in prison followed by three years of supervised release, announced Ripley Rand, United States Attorney for the Middle District of North Carolina.
Savage, of Asheboro, North Carolina, previously pled guilty to one count of impersonating an employee of the United States and to one count of threatening interstate communication. Savage held himself out to defense contractors as an Army Special Forces non-commissioned officer in order to purchase DBAL-A2 infrared aiming lasers, which are not available for public sale, and to purchase hardware that is subject to other restrictions, such as night vision devices that are prohibited from being exported overseas.
Savage also made a threat to a counselor working on behalf of the U.S. Department of Veterans Affairs (VA), after information was uncovered during the course of the investigation that was used by the VA to reduce Savage’s disability compensation.
The joint investigation included the U.S. Department of Defense Office of Inspector General’s Defense Criminal Investigative Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the VA Office of Inspector General, the Army Criminal Investigation Command, and the Randolph County Sheriff’s Office. Savage was sentenced in federal court in Greensboro, NC, on June 19, 2013, by United States District Judge Catherine C. Eagles. This case was prosecuted by Assistant United States Attorney Terry Meinecke.
Davie, Rowan County Residents Sentenced on Federal Drug ChargesRead the Press Release
Lengthy sentences conclude joint investigationGREENSBORO, N.C. – A group involved in the distribution of cocaine base (“crack”) in southwest Davie County and western Rowan County has been dismantled and its members sentenced to federal prison, announced United States Attorney Ripley Rand.
A joint investigation by the Davie County Sheriff’s Office, the Rowan County Sheriff’s Office, the North Carolina State Bureau of Investigation (SBI), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) uncovered a conspiracy to distribute cocaine base (“crack”) that included COREY DEWAYNE KERR, TAVIS LABRON HOUPE, DERRICK LAMONT WILSON, CARLOS ANTWONNE REDMOND, MICHAEL ANTHONY KEATON, ZENOBIA RUBEN JACKSON, ALPHONSO LEE KEATON, TRACY LAVENDER WILSON, and RICARDO JOHN LIPSCOMB. As a result of the investigation, these individuals were charged and convicted of federal drug crimes. ZENOBIA RUBEN JACKSON died prior to sentencing and the indictment against him was dismissed. The other defendants were all sentenced to federal prison.
“Our success in fighting this brazen drug trafficking organization is a direct result of our close partnerships with state and local law enforcement,” said United States Attorney Rand. “The Davie and Rowan County Sheriff’s Offices and the SBI have been valuable partners with ATF and the United States Attorney’s Office in the effort to improve the safety and quality of life in these communities for all residents.”
The investigation revealed that between June 1, 2007, and November 30, 2010, the co-conspirators were involved in drug sales in two open-air drug markets referred to as “Wilson Town” (in southwest Davie County) and “The Country” (in western Rowan County). Buyers of “crack” would be directed to one location or the other based upon the availability of “crack,” or police presence in the area. Many of the conspirators had common sources of supply for the “crack” and used common cooks for the purposes of manufacturing the “crack.” Other conspirators would congregate outside a residence within “The Country” that was being used to store and manufacture “crack.” Interviews with the conspirators revealed that some conspirators would buy from and sell to one another for resale, others would be involved in the street level distribution of “crack,” while others would provide transportation for those involved in the distribution of “crack.”
COREY DEWAYNE KERR, age 38, of Cleveland, NC, pleaded guilty on July 7, 2011, to maintaining a drug-involved premises. At the time of his plea, KERR was already serving a state court sentence for felony possession with intent to sell and deliver cocaine. KERR was sentenced on August 31, 2012, to 240 months in the Federal Bureau of Prisons and three years of supervised release.
Each of the other defendants pleaded guilty in March 2011 to one count of conspiracy to distribute 280 grams or more of cocaine base. They were sentenced as follows:
TAVIS LABRON HOUPE, age 37, of Cleveland, NC, was sentenced on June 29, 2011, to 78 months in the Federal Bureau of Prisons and five years of supervised release.
DERRICK LAMONT WILSON, age 37, of Salisbury, NC, was sentenced on August 5, 2011, to 171 months in the Federal Bureau of Prisons and ten years of supervised release.
CARLOS ANTWONNE REDMOND, age 30, of Mocksville, NC, was sentenced on August 11, 2011, to 90 months in the Federal Bureau of Prisons and five years of supervised release.
MICHAEL ANTHONY KEATON, age 29, of Clemmons, NC, was sentenced on August 5, 2011, to 114 months in the Federal Bureau of Prisons and five years of supervised release.
ALPHONSO LEE KEATON, age 40, of Cleveland, NC, was sentenced on June 28, 2011, to 87 months in the Federal Bureau of Prisons and five years of supervised release.
TRACY LAVENDER WILSON, age 41, of Salisbury, NC, was sentenced on August 5, 2011, to 100 months in the Federal Bureau of Prisons and four years of supervised release.
RICARDO JOHN LIPSCOMB, age 30, of Spencer, NC, was sentenced on August 4, 2011, to 120 months in the Federal Bureau of Prisons and five years of supervised release.
The cases were prosecuted by Assistant United States Attorney Terry Meinecke and Assistant United States Attorney Graham Green.
North Carolina Businessman Pleads Guilty to Tax FraudRead the Press Release
WASHINGTON –William Robert Hupman Jr., pleaded guilty today to corruptly endeavoring to obstruct or impede the due administration of the internal revenue laws, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to court documents, Hupman managed and controlled Security Concepts LLC, a security alarm company based in Mebane, N.C. Instead of receiving a salary from Security Concepts, Hupman received income by using a Security Concepts debit card to pay his expenses. Despite receiving over $770,000 in such fees between 2007 and 2011, Hupman has not filed an individual income tax return since tax year 2006.
In addition to his failure to comply with his personal income tax responsibilities, Hupman also failed to comply with his employment tax responsibilities at Security Concepts. As the person who managed and controlled Security Concepts, Hupman was responsible for withholding employment taxes and paying them over to the IRS on a periodic basis. Despite the fact that employment taxes were withheald from the wages of Security Concepts employees, Security Concepts has not paid employment taxes and filed the required tax form since the third quarter of 2009. Hupman neither paid over employment taxes nor filed the required tax form for the fourth quarter of 2009 and each of the quarters in 2010 and 2011. He also has not paid the federal unemployment taxes owed or filed the required tax form for years 2009, 2010, or 2011.
Hupman faces a maximum of three years in prison, one year of supervised release and a maximum fine of $250,000. Sentencing is scheduled for Aug. 29, 2013.
Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, thanked Special Agents of IRS - Criminal Investigation, who investigated the case, and Tax Division Trial Attorneys Todd Ellinwood and Kevin Lombardi for prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Elkin Photographer Enters PleaRead the Press Release
Defendant Guilty of Child Pornography, Obscenity ChargesGREENSBORO, N.C. – An Elkin man pled guilty today to possession of child pornography and production of obscenity, announced Ripley Rand, United States Attorney for the Middle District of North Carolina.
Eric Blaine Lusk, 42, of Elkin, North Carolina, pleaded guilty to one count of possession of child pornography and one count of production and distribution of obscenity. Lusk entered his plea in Winston-Salem, North Carolina, before United States District Judge Thomas D. Schroeder.
While acting as a professional photographer for youth sporting events, Lusk took close-up photographs of the pubic area of members of a girls’ swim team while the girls were wearing swimsuits. Lusk then anonymously distributed those photographs through file-sharing networks, labeling the photographs with names associated with child pornography. By labeling the swim team photographs in that way, the photographs came up as search results for persons seeking child pornography on file-sharing networks. However, none of the members of the swim team was photographed nude or in sexual activity. Lusk’s activity with the girls’ swim team photographs is the basis of the obscenity charge. When the distribution of the swim team photographs was traced back to Lusk, a search of his computers showed he possessed child pornography independent of any photographs he had taken. Lusk was released pending his sentencing on August 29, 2013, at 9:30 a.m. in Winston-Salem.
Lusk faces a maximum sentence of up to ten years imprisonment, a fine of up to $250,000, and a term of supervised release of five years to life.
This case was investigated by members of the North Carolina Internet Crimes Against Children (ICAC) Task Force, including the Pitt County Sheriff’s Office, Elkin Police Department and North Carolina State Bureau of Investigation, and prosecuted by Assistant United States Attorney Anand P. Ramaswamy.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Dentist SentencedRead the Press Release
Medicaid fraud nets prison term, fine and restitutionGREENSBORO, N.C. – Sassan Bassiri, DDS, age 46, has been sentenced to five months in prison followed by five months home confinement, announced Ripley Rand, United States Attorney for the Middle District of North Carolina.
Bassiri, of Pfafftown, North Carolina, practiced dentistry in King. His license to practice dentistry in North Carolina was revoked effective April 18, 2011.
Bassiri pleaded guilty on January 3, 2013, to three counts of health care fraud in connection with a scheme to defraud the North Carolina State Medicaid program. The fraudulent conduct included billing Medicaid for cast metal dentures when less expensive dentures were actually provided, and billing Medicaid for extensive oral examinations when the patient actually received non-billable or previously-reimbursed services.
Bassiri was sentenced on May 3, 2013, by United States District Judge N. Carlton Tilley, Jr., in federal court in Greensboro, North Carolina. Bassiri was also ordered to pay a $10,000.00 fine and $68,795.65 in restitution to the Medicaid program. He will be on supervised release for two years after the conclusion of his sentence.
The case was prosecuted by Assistant United States Attorney Robert Hamilton and Special Assistant United States Attorney and Assistant Attorney General Laura Lansford of the Medicaid Investigations Division of the North Carolina Attorney General’s Office. The case was investigated by the North Carolina Medicaid Investigations Division.
###Justice Department Reaches Settlement with Forsyth County, North Carolina Sheriff to Resolve Employment Rights Claim of A North Carolina Army National Guard SoldierRead the Press Release
WASHINGTON – The Justice Department announced today that it reached an agreement with Forsyth County, N.C., and Sheriff William T. Schatzman of Forsyth County to resolve allegations that they violated the employment rights of North Carolina Army National Guard soldier Michael Russell under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).
The Justice Department’s complaint alleged that Sheriff Schatzman and Forsyth County violated USERRA by terminating Russell’s employment with the Forsyth County Sheriff’s Office without cause and without notice within one year after his reemployment following his return from active military duty. Russell, an Iraq war veteran, had worked as a Deputy Sheriff and Sergeant Deputy Sheriff with the Forsyth County Sheriff’s Office since 1989. In February 2010, Russell completed a one-year deployment to Iraq with the North Carolina Army National Guard, and returned to his position with Forsyth County as a Sergeant Deputy Sheriff. On Nov. 29, 2010, less than one year following Russell’s reinstatement to his Sergeant Deputy Sheriff position, Sheriff Schatzman and Forsyth County discharged Russell from his employment without cause. According to the Justice Department’s complaint, Russell’s employment as a Deputy Sheriff was terminated because of Sheriff Schatzman’s belief that Russell had supported the election campaign of another candidate for Forsyth County Sheriff, Dave Griffith. However, Russell did not support Griffith’s campaign for Forsyth County Sheriff and his termination was therefore without cause.
USERRA prohibits employers from discriminating against service members with respect to employment opportunities based on their past, current or future uniformed service obligations. USERRA also provides servicemembers such as Russell special protection from discharge from their civilian employment after returning from uniformed service, such as a deployment lasting more than 180 days. Under USERRA, individuals who have served over 180 days may not be discharged from their civilian jobs within one year of their return from military service, except for cause.
Under the terms of the agreement, which was filed as a Consent Decree in the U.S. District Court for the Middle District of North Carolina, Schatzman and Forsyth County have agreed to pay $96,000 in lost wages to Russell. Schatzman and Forsyth County have also agreed to provide Russell with an employment reference letter that accurately reflects the content of his performance evaluations prior to his termination.
“USERRA affords military members who leave their civilian careers behind for significant periods of time to serve our country certain protections against unjust terminations,” said Jocelyn Samuels, Principal Deputy Assistant Attorney General for the Civil Rights Division. “It is important that veterans have the opportunity to readjust to civilian life and their careers free from worry about termination without cause.”
The Justice Department initiated the lawsuit after Russell filed a complaint with the Labor Department’s Veterans’ Employment and Training Service, which investigated the matter and determined that the complaint had merit. This case was handled by the Employment Litigation Section of the Civil Rights Division.
Additional information about USERRA can be found on the Justice Department websites www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as the Labor Department website www.dol.gov/vets/programs/userra/main.htm.
###Reidsville Man Sentenced for Child PornographyRead the Press Release
GREENSBORO, N.C. – A Reidsville man was sentenced to five years in prison and 10 years supervised release for receipt of child pornography, announced United States Attorney Ripley Rand.
Michael Scott Bugher, 44, of Reidsville, North Carolina, had pleaded guilty to one count of receipt of child pornography. Bugher was sentenced on March 19, 2013, by United States District Judge Thomas D. Schroeder, to 60 months in prison followed by 10 years supervised release. Bugher admitted knowingly seeking and receiving child pornography using the internet.
This case was investigated by the Reidsville Police Department and North Carolina State Bureau of Investigation, and prosecuted by Assistant United States Attorney Anand P. Ramaswamy.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###North Carolina Poultry Processing Plant Sentenced for Violating Clean Water ActRead the Press Release
WASHINGTON— A federal judge sentenced House of Raeford Farms Inc., a poultry slaughtering and processing facility located in Raeford, N.C., to a fine of $150,000, a two year period of probation and to pay a special assessment of $4,000 on Feb. 26, 2013, for 10 counts of knowingly violating the Clean Water Act.
House of Raeford Inc. allowed plant employees to bypass the facility’s pretreatment system and send its untreated wastewater directly to the City of Raeford’s Wastewater Treatment Plant, without notifying city officials. House of Raeford Inc. failed to prevent employees from sending thousands of gallons of wastewater into a pretreatment system that did not have the capacity to adequately treat the amount of wastewater before it discharged to the city plant. The untreated wastewater discharged directly to the city plant was contaminated with waste from processing operations, including blood, grease, and body parts from the slaughtered turkeys. A House of Raeford, Inc. former employee admitted that the facility would continue to “kill turkeys” despite being warned that the unauthorized bypasses had an adverse impact on the city’s Wastewater Treatment Plant. The city plant was responsible for treating industrial, commercial and residential wastewater before it was discharged to Rockfish Creek in Hoke County.
The bypasses and failure to report them were in violation of House of Raeford’s pretreatment permit as well as the city’s sewer use ordinance. Many of the bypasses took place while House of Raeford was subject to a consent order with the city that required it to construct a new pretreatment system and comply with all requirements of its pretreatment permit. A number of the bypasses were recorded in log books kept by House of Raeford Inc. wastewater operators, and were never revealed to the City.
The case was prosecuted by the Justice Department’s Environmental Crimes Section and was investigated by U.S. Environmental Protection Agency-Criminal Investigation Division and North Carolina State Bureau of Investigation.
###Scotland County Residents SentencedRead the Press Release
Defendants Face 57 to 108 Months in Federal PrisonGREENSBORO, N.C. – Ripley Rand, United States Attorney for the Middle District of North Carolina, announced the results in three recent federal prosecutions involving offenders from Scotland County, North Carolina.
On December 13, 2012, United States District Judge Thomas D. Schroeder sentenced MICHAEL WAYNE HILL, 54, of Laurinburg to 63 months in prison and three years of supervised release. Hill pled guilty on September 5, 2012 to both counts of a federal indictment charging him with possessing crack cocaine with the intent to distribute it and possession of a firearm by a convicted felon. Information from Hill’s guilty plea and sentencing hearings reflected that on June 11, 2011, officers with the Scotland County Sheriff’s Office executed a search warrant at Hill’s apartment in Laurinburg as the result of an undercover purchase of drugs there. That search yielded 7 grams of crack cocaine, individually wrapped in 15 plastic baggies, and a loaded .32 caliber S&W revolver. Hill illegally possessed the revolver after previously being convicted of felonies in 2006.
On December 14, 2012, Judge Schroeder sentenced DEQUAN FITZGERALD HENDERSON, age 25, of Laurinburg to 57 months in federal prison and three years of supervised release. Henderson pled guilty on September 5, 2012 to possessing the twelve rounds of ammunition after having been convicted of a felony. Henderson had prior felony convictions from 2004 and 2009.
On December 13, 2012, Judge Schroeder also sentenced TITUS TYRONE REDDICK, age 32, of Laurinburg to 105 months imprisonment and three years of supervised release. Information from Reddick’s September 5, 2012 guilty plea and his December 13, 2012 sentencing indicated that on August 26, 2011 Reddick possessed a .380 caliber semiautomatic pistol. Reddick had a prior felony conviction from 2004.
U.S. Attorney Rand commended the efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, as well as officers with the Laurinburg Police Department and Scotland County Sheriff’s Office. “Our office places top priority on combating gun and violent crime, and our success in these cases is a direct result of our close partnerships with federal, state, and local law enforcement,” Rand stated. “We will continue to work closely with the Laurinburg Police Department, the Scotland County Sheriff’s Department, the office of District Attorney Kristy Newton, and other federal, state, and local law enforcement to prosecute felons, domestic violence offenders, and others who possess guns and ammunition illegally and to make our communities safer for all.”
Laurinburg Interim Police Chief Kimothy Monroe added, “Convicted felons in Laurinburg are on notice that this office is working hard with the U.S. Attorney’s Office and the Scotland County District Attorney’s office to prevent violent crimes, especially those committed by convicted felons with guns. We plan to keep in communication with both offices to ensure that gun cases have the highest priority.”
Scotland County Sheriff Shep Jones noted, “We look forward to working with federal authorities to make sure that federal prosecutors have what they need to pursue federal criminal charges for violent crimes committed in Scotland County. Guns in the hands of felons and other prohibited persons are unacceptable.”
Alamance County Residents Plead to Health Care FraudRead the Press Release
Conducted Fraudulent Medicaid Billing SchemeGREENSBORO, N.C. – United States Attorney for the Middle District of North Carolina Ripley Rand announced today that EVELYN FULLER and MICHAEL MCLEAN pleaded guilty in federal court in Greensboro before United States District Judge Catherine C. Eagles to felony charges of conspiracy to commit health care fraud and health care fraud.
Fuller, age 61, is a resident of Mebane, North Carolina. McLean, age 56, is a resident of McLeansville, North Carolina. Fuller operated a mental health business in Mebane, North Carolina, called Harvest House Community Development Corporation, Inc., which allegedly provided community support services to Medicaid clients. McLean worked as a manager for Harvest House.
Fuller and McLean pleaded guilty to charges that they submitted or aided and abetted the submission of claims to the North Carolina Medicaid program for mental health services which were never provided. Between June 2007 and November 2008, Fuller and McLean submitted approximately $400,000 in claims to the Medicaid program for services that were not provided and paid cash to some Medicaid recipients in order to obtain access to the recipient’s Medicaid numbers. The numbers are required for billing Medicaid and were used in the fraudulent billing scheme.
Each of the defendants faces a maximum penalty of ten years confinement. The plea agreements also require the defendants to make restitution to the Medicaid program. Sentencing will occur in Greensboro on June 13, 2013.
The case was investigated by the Health and Human Services Office of Inspector General and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. The case is being prosecuted by Assistant United States Attorney Robert Hamilton and Special Assistant United States Attorney/Assistant Attorney General Jacqueline Perez.
###Richmond County Residents Plead Guilty to Federal Drug and Firearm ChargesRead the Press Release
GREENSBORO, N.C. – United States Attorney Ripley Rand announced today that ten Richmond County men have recently pleaded guilty to federal drug and firearm charges in the Middle District of North Carolina and face lengthy federal sentences.“These convictions remove dangerous criminals from the streets of Richmond County,” said U. S. Attorney Rand. “These men face long federal sentences as a result of the coordination of local, state, and federal law enforcement efforts. We especially commend law enforcement officers in Richmond County and District Attorney Reece Saunders for their cooperation and hard work on these cases.”
CASES SENTENCED
JOHNNY STEELE, age 46, of Mizpah Road, Rockingham, was federally indicted in the Middle District of North Carolina on June 27, 2011. On August 1, 2011, STEELE pleaded guilty to being a felon in possession of a firearm, and on December 8, 2011, he was sentenced to180 months in the Federal Bureau of Prisons.
BRIAN STEVEN MYERS, age 30, of Airport Road, Rockingham, was federally indicted in the Middle District of North Carolina on August 29, 2011. On October 3, 2011, MYERS pleaded guilty to being a felon in possession of a firearm, and on February 15, 2012, he was sentenced to 57 months in the Federal Bureau of Prisons.
CHRISTOPHER CHAD LEVINER, age 23, of Osborne Road, Rockingham, was federally indicted in the Middle District of North Carolina on July 25, 2011. On October 3, 2011, LEVINER pleaded guilty to possession with intent to distribute cocaine base and being a felon in possession of a firearm, and on February 15, 2012, he was sentenced to 120 months in the Federal Bureau of Prisons.
LAWRENCE TYRONE DYE, JR., age 32, of Wilderness Drive, Rockingham, was federally indicted in the Middle District of North Carolina on August 11, 2011. On October 3, 2011, DYE pleaded guilty to distribution of cocaine base, and on February 15, 2012, he was sentenced to 70 months in the Federal Bureau of Prisons.
CASES PENDING SENTENCING
PHILLIP BRUCE KINGSLEY, age 64, of South Carolina Street, Rockingham, was federally indicted in the Middle District of North Carolina on October 31, 2011. On December 6, 2012, KINGSLEY pleaded guilty to being a felon in possession of a firearm and ammunition. KINGSLEY is scheduled to be sentenced on April 18, 2012, at 2:00 p.m. in Greensboro.
JIMMY DELL OTT, JR., age 33, of Gathings Street, Rockingham, was federally indicted in the Middle District of North Carolina on October 31, 2011. On December 6, 2011, OTT pleaded guilty to being a felon in possession of a firearm. OTT is scheduled to be sentenced on April 18, 2012, at 9:30 a.m. in Greensboro.
MARCO MICHACA SILVA, age 35, of Airport Road, Rockingham, was federally indicted in the Middle District of North Carolina on October 31, 2011. On January 10, 2012, SILVA was convicted by a jury of reentry by a previously deported alien and being an illegal alien in possession of a firearm. SILVA is scheduled to be sentenced on May 11, 2012, at 2:00 p.m. in Greensboro.
BRENT ALEXANDER EVERETT, age 22, of Daniels Street, Hamlet, was federally indicted in the Middle District of North Carolina on September 27, 2011. On November 9, 2011, EVERETT pleaded guilty to being a felon in possession of a firearm. EVERETT is scheduled to be sentenced on March 9, 2012, at 9:30 a.m. in Winston-Salem.
BOBBY DARRYL LEDBETTER, age 49, of Ledbetter Hailey Road, Rockingham, was federally indicted in the Middle District of North Carolina on October 31, 2011. On December 7, 2011, LEDBETTER pleaded guilty to being a felon in possession of a firearm. LEDBETTER is scheduled to be sentenced on April 19, 2012, at 2:00 p.m. in Greensboro.
MATTHEW LAMAR BEMBRY, age 27, Armstead Street, Rockingham, was federally indicted in the Middle District of North Carolina on September 27, 2011. On October 3, 2011, BEMBRY pleaded guilty to being a felon in possession of a firearm. BEMBRY is scheduled to be sentenced on March 19, 2012, at 2:00 p.m. in Winston-Salem.
The convictions referenced above are the result of close cooperation between the Richmond County Sheriff’s Office, the Rockingham Police Department, the North Carolina State Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Richmond County District Attorney’s Office, and the U.S. Attorney’s Office for the Middle District of North Carolina.
Producer of Child Pornography SentencedRead the Press Release
GREENSBORO, N.C. -- United States Attorney Ripley Rand announced that a Concord man was sentenced today to 120 years in prison and supervised release for life for production of child pornography. David Matthew Hallman, 42, of Concord, North Carolina, pleaded guilty to four counts of production of child pornography in August 2012. United States District Judge Catherine C. Eagles sentenced Hallman to 1,440 months in prison to be followed by lifetime supervised release. Co-defendant Mary Freda Williams, 33, was sentenced on December 17, 2012, by United States District Judge William L. Osteen, Jr., to 40 years imprisonment followed by lifetime supervised release. Hallman sexually exploited multiple children ranging in age from 1 to 12, and produced thousands of images and videos of that sexual exploitation.This case resulted from joint efforts of federal and state authorities and was investigated by the Federal Bureau of Investigation, the Cabarrus County Sheriff’s Office, and the Concord Police Department. The case was prosecuted by Assistant United States Attorney Anand P. Ramaswamy. “Our office would like to thank Cabarrus County District Attorney Roxann Vaneekhoven and Assistant District Attorney Ashlie P. Shanley for their partnership and coordination, which made this prosecution possible,” said U.S. Attorney Rand. “The sentences imposed by the Court are more than appropriate given the horrifying facts in these cases.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
###Operator of Payroll Companies Sentenced in North Carolina for Federal Fraud and Money Laundering CrimesRead the Press Release
GREENSBORO, N.C. - Arthur S. Weiss of Winston-Salem, N.C., was sentenced yesterday to 185 months in prison for employment tax fraud and other crimes by Judge Thomas D. Schroeder, announced Ripley Rand, U.S. Attorney for the Middle District of North Carolina; Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division; and Richard Weber, Chief of Internal Revenue Service (IRS) - Criminal Investigation. Judge Schroeder ordered Weiss to pay more than $7 million in restitution to numerous victims, including the IRS, the North Carolina Department of Revenue, and former clients.
Weiss pleaded guilty to charges of wire fraud, bank fraud, money laundering, and tax obstruction on October 5, 2012. According to documents filed in the case, Weiss operated professional employer organizations (PEOs), which provided payroll-related services to client companies. For his client companies, Weiss agreed to pay the employees, withhold and remit federal and state taxes, prepare and file the federal and state employment tax returns, and provide workers compensation insurance (WCI). Weiss did pay the employees and withhold the employment taxes, but he failed to remit the employment taxes, keeping them for his personal use. From 2004 to 2012, Weiss failed to file employment tax returns and failed to pay over to the IRS employment taxes in excess of $4 million. In addition, Weiss collected WCI premiums from his clients but failed to obtain adequate WCI protection, and diverted WCI premiums for his personal use.
“Fraudsters beware - we will relentlessly pursue anyone who cheats our businesses, our financial institutions, or the treasury,” said U.S. Attorney Rand. “This defendant’s business model and financial activities were based on stealing from innocent people, and his audacious conduct deserves the substantial sentence imposed by the court.”
“Business owners who game the system by evading payment of payroll taxes hurt American taxpayers and law-abiding business owners who are at a competitive disadvantage,” said Assistant Attorney General Keneally. “The sentence handed down today shows that those who willfully violate their employment tax obligations will be prosecuted and risk severe punishment for their crimes. In addition, they will still be held responsible for the taxes due, together with interest and civil penalties.”
“Mr. Weiss used a foundation of fraud and deceit in order to cheat the government and is now being held accountable for his egregious behavior,” said Richard Weber, Chief, IRS, Criminal Investigation. “As the operator of a payroll service company, Weiss had an inescapable obligation to remit withheld employment taxes to the IRS. IRS Criminal Investigation intends to vigorously pursue anyone who collects taxes and fails to timely remit those taxes.”
According to court documents, Weiss used a portion of his fraud proceeds to purchase expensive jewelry and exotic cars, such as Ferraris, Lamborghinis, and Porsches. During a trip to Europe, Weiss fraudulently reported four pieces of jewelry lost or stolen, and received $177,480 from his insurance company. The jewelry was later seized during a search at his former residence in Marion, N.C.
Weiss also admitted to committing bank loan fraud. According to publicly filed documents, in order to receive four loans from a bank, Weiss provided numerous personal income tax returns to the bank. Each of the returns Weiss provided to the bank included significantly greater income than the returns actually filed with the IRS.
The case was investigated by IRS-Criminal Investigation, the FBI, the North Carolina Industrial Commission’s Fraud Unit, the North Carolina Department of Insurance-Investigations, and the McDowell County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Clifton Barrett and Trial Attorney Todd Ellinwood of the Tax Division.