Middle District of North Carolina
Press releases recorded for this federal judicial district.
Man Pleads Guilty to Conspiracy to Launder Money in Connection with $100 Million Health Care Fraud SchemeRead the Press Release
Greensboro, NC – Chaudhry Shabbir Ahmed pled guilty on Monday, February 3, 2025, to conspiring to launder over $3 million in connection with a $100 million dollar health care fraud scheme, announced Acting United States Attorney Randall S. Galyon.
According to court documents, Ahmed conspired with another individual to represent himself as the owner of two durable medical equipment businesses—Dune Medical Supply, LLC located in High Point, North Carolina and Prospect Health Solutions, Inc. located in Fort Lauderdale, Florida. Ahmed and a co-conspirator used a sham purchase agreement to make it appear as though Ahmed owned and operated these companies, even though the co-conspirator continued to control the companies. Once Ahmed was listed on relevant documents as the sole owner of Dune and Prospect, including documents submitted to Medicare, Dune and Prospect collectively submitted more than $100 million in fraudulent claims to Medicare. The claims were submitted between April 2024 and August 2024 for durable medical equipment that Medicare beneficiaries never received, requested, or needed, or that the provider never ordered.
Before the scheme was discovered, Medicare electronically deposited more than $33 million in claim reimbursements into bank accounts held in the name of Dune and Prospect at various financial institutions. Ahmed had access to these accounts and would withdraw fraud proceeds in cash at bank branches. For example, on June 30, 2024, Ahmed withdrew $400,000 in cash from Prospect’s bank account and on August 9, 2024, Ahmed withdrew $500,000 in cash from Prospect’s bank account.
As part of the plea agreement, Ahmed agreed to forfeit over $17.6 million dollars that was seized during the investigation, as well as a Rolex watch and cryptocurrency.
Sentencing is scheduled to take place on June 24, 2025, at 9:30 a.m. in Greensboro, North Carolina, before Chief United States District Judge Catherine C. Eagles. At sentencing, Ahmed faces a maximum sentence of five years in prison, a period of supervised release of up to three years, and monetary penalties.
The Department of Health and Human Services-Office of Inspector General and the Federal Bureau of Investigation are investigating the case, and it is being prosecuted by Assistant U.S. Attorneys Rebecca Mayer, JoAnna McFadden, and Ashley Waid.
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U.S. Attorney’s Office Collects $11,766,028.87 in Civil and Criminal Actions in Fiscal Year 2024Read the Press Release
GREENSBORO, NC – Acting United States Attorney Randall S. Galyon announced today that the Middle District of North Carolina (MDNC) collected $11,766,028.87 in criminal and civil actions in Fiscal Year 2024. Of this amount, $10,606,536.43 was collected in criminal actions and $1,159,492.44 was collected in civil actions. The MDNC also worked with other U.S. Attorney’s Offices and Department of Justice components to collect $550.00 in criminal cases pursued jointly by these offices.
“Collecting restitution and other criminal and civil debts is a vital part of our mission,” said Acting U.S. Attorney Galyon. “We will continue to prioritize collections in order to hold criminals accountable, collect debts owed to the government, and recover compensation for victims of crime.”
In January 2024, the Middle District of North Carolina recovered $611,845.17 in restitution after garnishing the defendant’s retirement accounts in the case of USA v. Mouzon, 1:22CR200. On October, 2022, the defendant pled guilty to one count of wire fraud and was ordered to pay a special assessment of $100, restitution of $2,038,285.66 and a fine of $5,000.00. To date, a total of $805,305.28 has been recovered for the victim, including $193,610.82 from disposal of administratively forfeited assets. A request is pending to allow proceeds from the disposal of judicially forfeited assets to be applied to restitution.
The U.S. Attorneys’ 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 collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the MDNC, working with partner agencies and divisions, collected $1,549,150 in asset forfeiture actions in FY 2024. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund and Department of Treasury Seized Assets Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Greensboro Laboratory and Owner Agree to Pay $850,000 to Resolve Allegations of False Claims for Urine Drug TestingRead the Press Release
GREENSBORO, N.C. – Substance Abuse Treatment Labs, located in Greensboro, and its owner, Paul Fribush, have agreed to pay $850,000 to resolve civil allegations that it violated the False Claims Act by billing North Carolina Medicaid for medically unnecessary urine drug screening tests (UDT), announced Acting U.S. Attorney Randall Galyon.
The United States and the State of North Carolina alleged that, between January 2018 and January 2022, Substance Abuse Treatment Labs and Fribush submitted false claims for the highest level of urine drug testing to Medicaid. These claims, which reimbursed providers at the highest dollar amount for urine drug tests, were submitted to Medicaid despite clear signs that the tests were not medically necessary.
“Protecting taxpayer dollars used to provide medical benefits to those who need it most is essential to this Office’s mission.” said Acting United States Attorney Randall Galyon. “We will continue to identify and hold accountable those providers that seek to enrich themselves off taxpayers through submitting such false claims. I am thankful for our partnership with the North Carolina Attorney General’s Office to assist us in this mission in pursuing justice on behalf of Medicaid.”
“Submitting false claims to Medicaid undermines the program’s integrity and wastes valuable taxpayer dollars,” said Special Agent in Charge Kelly Blackmon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG remains dedicated to safeguarding the integrity of Medicare and Medicaid and protecting the people these programs serve.”
The resolutions obtained in this matter were the result of a coordinated effort among the U.S. Attorney’s Office for the Middle District of North Carolina; the Medicaid Investigations Division of the North Carolina Attorney General’s Office; and the U.S. Department of Health and Human Services, Office of Counsel to the Inspector General. The United States was represented by Assistant United States Attorney Rebecca Mayer and Special Assistant United States Attorney Matthew Petracca.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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United States Attorney Hairston resigns effective January 18Read the Press Release
GREENSBORO, NC – United States Attorney Sandra J. Hairston announced that she has resigned her position as head of the United States Attorney’s Office in the Middle District of North Carolina (MDNC) and will retire from federal service effective January 18, 2025.
“Serving this district as United States Attorney and as an Assistant United States Attorney has been the honor of my life,” said U.S. Attorney Hairston. “The late Rev. Dr. Martin Luther King, Jr. often said, ‘The time is always right to do what is right.’ I have done my best to do what is right during my time as a prosecutor, and with the help of dedicated professionals in the U.S. Attorney’s Office and our federal, state, and local law enforcement partners, I believe we have made our communities safer, more just, and more equitable.”
Ms. Hairston joined the United States Attorney’s Office for the MDNC in 1990. During her 34 years with the Department of Justice, Ms. Hairston served as Deputy Chief of the Criminal Division and Lead Task Force Attorney in the Organized Crime Drug Enforcement Task Force Section in the MDNC. She also served as the Professional Responsibility Officer, Ethics Advisor, and Criminal Discovery Coordinator for the district. From April 1994 until June 1996, Ms. Hairston served as Chief of the Criminal Division in the United States Attorney’s Office for the Eastern District of North Carolina.
Ms. Hairston was named First Assistant United States Attorney for the MDNC in April 2014, a position she held until November 2021. Ms. Hairston served as Acting United States Attorney for the MDNC from January 14, 2017, until January 3, 2018, and from March 1, 2021, until she was sworn in as United States Attorney on November 23, 2021. Ms. Hairston served on the Attorney General’s Advisory Committee from March 2022 until June 2023.
Ms. Hairston is a 2002 recipient of the Director’s Award from the Executive Office for United States Attorneys for superior performance as an Assistant United States Attorney. In 2015, she received the Peter S. Gilchrist III Award from the North Carolina Bar Association which is given to a prosecutor who exemplifies the highest ideals of the profession. In 2018, she was inducted as a Fellow into the American College of Trial Lawyers.
Ms. Hairston is a 1981 graduate of the University of North Carolina at Charlotte, and a 1987 graduate of the North Carolina Central University School of Law. She began her legal career in 1987 as an Assistant District Attorney in the Thirteenth (now Fifteenth) Prosecutorial District of North Carolina.
Selected highlights of the U.S. Attorney’s Office accomplishments during Hairston’s tenure include:
- Expanding Project Safe Neighborhoods (PSN), the federal Department of Justice’s premier data-driven, comprehensive anti-gun-violence program, to systematically address rising juvenile crime across the MDNC through community engagement, targeted prevention, intervention and reentry, strategic enforcement, and improved accountability between partners.
- Planning and hosting over 25 re-entry simulations, all designed to share best practices, aid assimilation, and reduce recidivism among inmates returning to society after serving their sentences. Hosting with the NC Department of Adult Correction a reentry simulation “train the trainer” seminar to share best practices and lessons learned with other groups holding simulations.
- Further integrating the National Integrated Ballistics Information Network (NIBIN) and Crime Gun Intelligence Centers, in partnership with the Bureau of Alcohol, Tobacco, Firearms, and Explosives and police departments in Durham, Greensboro, High Point, and Winston-Salem into the strategic enforcement component of PSN to help solve gun crime incidents and get violent criminals off the street.
- Encouraging and supporting the implementation of the evidence-based Violent Impact Player or “VIP” case screening model in Greensboro and Winston-Salem where law enforcement, probation and prosecutors use objective information to identify VIPs and focus “best efforts” of partnering agencies on the most dangerous “shooters.” VIP has contributed to a reduction in homicides of over 40% in Greensboro and 34% in Winston-Salem from 2023 to 2024, and significant reductions in overall violent crime.
- In 2024, Remy St Felix and 12 other defendants received lengthy prison sentences for their roles in an international conspiracy to break into U.S. citizens’ homes, violently kidnap and assault them, and steal Bitcoin and other cryptocurrency.
- In 2024, Marian Hudak was convicted at trial of violating the civil rights of Black and Hispanic citizens by willfully intimidating the victims and interfering with their enjoyment of federally protected activities through both threats of force and actual force.
- In 2022, Antonio Nathaniel Davenport, Jr., and Derrick Lamont Dixon, Jr., received life sentences for the RICO murder of nine-year-old Z’yon Person in Durham in 2019.
- In 2023, Steven Tyler Smith received a 50-year sentence for producing child pornography and Joshua Timothy Taylor received a 60-year sentence for engaging in sex with a minor and producing child pornography.
- Emphasized the prosecution of the most dangerous offenders who exploit children, resulting in the sentencing of 72 defendants with an average sentence of nearly 15 years (179.125 months) and median sentence of 10 years.
- Protected taxpayers and victim rights by collecting more than $25 million in criminal debts and more than $12 million in federal civil debts from 2021 through 2024.
- Partnering with the Civil Rights Division in DOJ’s Combatting Redlining Initiative, leading to a $13.5 million settlement with a national bank to resolve Fair Housing Act and Equal Credit Opportunity Act claims.
- Partnering with the Environmental and Natural Resources Division on Clean Air Act litigation resulting in a $10 million consent decree to resolve claims that a local company sold and installed emissions defeat devices.
- In conjunction with the Civil Rights Division, working with the North Carolina Division of Adult Corrections to resolve Religious Land Use and Institutionalized Persons Act allegations, leading to religious policy changes across the North Carolina prison system that expand the rights of minority faith groups to gather for religious services.
- Recovering more than $10 million for the federal fisc in False Claims Act cases, including allegations of improper kickbacks and medically unnecessary testing.
- Fighting the opioid crisis through both civil Controlled Substances Act enforcement against pharmacies and physicians and expanding access to treatment through enforcement of the Americans with Disabilities Act, including outreach to county jails and medical providers regarding their legal obligations.
- Hosting three United Against Hate outreach events, to empower local communities with information about how to recognize and report hate crimes.
- Resolving fifteen Americans with Disabilities Act cases, including resolutions that require policy changes to ensure that individuals who are deaf or hard of hearing have access to effective communication during medical care.
First Assistant U.S. Attorney Randall Galyon will serve as acting U.S. Attorney upon Ms. Hairston’s departure.
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Burlington Man Sentenced for Drug and Firearm OffensesRead the Press Release
GREENSBORO – A Burlington, North Carolina man was sentenced today in Winston-Salem to 9 years in prison after pleading guilty to a drug charge and a related firearm charge, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
FREDRICK DONTAE SLADE, age 50, was sentenced to 108 months imprisonment plus 3 years supervised release by the Honorable Loretta C. Biggs, Senior United States District Judge in the United States District Court for the MDNC. In addition to prison and supervision, SLADE was ordered to forfeit a Glock-type privately made pistol and 9mm ammunition.
According to court records, on March 23, 2022, Alamance County Sheriff’s Office deputies approached SLADE while he was parked at a local business after noting SLADE was driving on a suspended license and had completed a suspected drug delivery. SLADE refused officer commands to get out of the vehicle. As one of the officers opened his driver door, SLADE placed the car in reverse and stepped on the gas. SLADE dragged the officer approximately 35 feet before stopping. Upon searching SLADE and his vehicle, officers discovered over 8 grams of cocaine base and a tan polymer “ghost gun,” similar in design to a Glock pistol, which is more difficult for law enforcement to trace. The gun was loaded and attached to a 50-round drum magazine with thirteen rounds of ammunition in it. Attached to the weapon was a “Glock switch,” which functions as a machine gun and allowed the Glock-type ghost gun to shoot automatically more than one shot, without manual reloading, by a single function of the trigger.
SLADE pleaded guilty on June 5, 2024, to one count of possession with intent to distribute cocaine base, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C), and one count of felon in possession of ammunition, in violation of 18 U.S.C. § 922(g)(1) and 924(a)(2).
The case was investigated by Alamance County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by MDNC Assistant United States Attorney Lindsey A. Freeman and former Assistant United States Attorney Jack M. Alsup.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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United States Attorney’s Office Hosts Second Annual Human Trafficking Simulation for Human Trafficking Awareness MonthRead the Press Release
GREENSBORO – United States Attorney Sandra J. Hairston announced that the United States Attorney’s Office for the Middle District of North Carolina (USAO-MDNC), in partnership with The Human Trafficking Resource Center and the Lexington Police Department, hosted a simulation for community members, law enforcement, and service organizations to learn about the warning signs of human trafficking and provide resources for victims.
Each year, the Department of Justice recognizes National Human Trafficking Awareness month in January in an effort to better educate the public about the signs of human trafficking and bring awareness to the victims. This year, the USAO-MDNC hosted its second annual human trafficking simulation to allow law enforcement and service providers a chance to learn more about what it is like to be a victim of human trafficking in order to better serve victims and their families. Despite the forecast winter storm, approximately 35 participants from all around the state took part in this event, including service providers, NGOs, churches, medical providers, law enforcement, analysts, and victims’ services. Participants were also given a chance to speak with prosecutors and law enforcement about the government response to human trafficking and what resources are available.
“The exploitation of human beings for profit and has no place in any society. Whether it’s forced labor, domestic servitude, or sex trafficking of children or adults, human trafficking is happening every day in every state, stripping victims of their dignity and forcing them into a life of fear and servitude,” said United States Attorney Hairston. “The public is law enforcement’s most valuable partner in identifying cases and preventing this heinous crime, and we are proud to host this event to educate members of both the community and law enforcement on the ways to recognize and prevent human trafficking.”
If you or someone you know has experienced human trafficking, help is available. The National Human Trafficking Hotline provides free, confidential help, 24/7. Call: 1-888-373-7888; Text: HELP to 233733 (BEFREE); or Chat: humantraffickinghotline.org/chat. If you are experiencing an emergency, please call 911.
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Justice Department Sues Six Large Landlords for Algorithmic Pricing Scheme that Harms Millions of American RentersRead the Press Release
Attorneys General of Illinois and Massachusetts Join Suit Against RealPage and Apartment Landlords, Bringing Total State and Commonwealth Co-Plaintiffs to 10
WASHINGTON — The Justice Department, together with its state co-plaintiffs, filed an amended complaint today in its antitrust lawsuit against RealPage, to sue six of the nation’s largest landlords for participating in algorithmic pricing schemes that harmed renters.
The amended complaint alleges the landlords — Greystar Real Estate Partners LLC (Greystar); Blackstone’s LivCor LLC (LivCor); Camden Property Trust (Camden); Cushman & Wakefield Inc and Pinnacle Property Management Services LLC (Cushman); Willow Bridge Property Company LLC (Willow Bridge) and Cortland Management LLC (Cortland) — participated in an unlawful scheme to decrease competition among landlords in apartment pricing, harming millions of American renters. Together, these landlords operate more than 1.3 million units in 43 states and the District of Columbia. The Attorneys General of Illinois and Massachusetts joined the amended complaint as co-plaintiffs, increasing the total number of State and Commonwealth co-plaintiffs to 10. At the same time, the Justice Department filed a proposed consent decree with landlord Cortland that requires it to cooperate with the government, stop using its competitors’ sensitive data to set rents and stop using the same algorithm as its competitors without a corporate monitor.
“While Americans across the country struggled to afford housing, the landlords named in today’s lawsuit shared sensitive information about rental prices and used algorithms to coordinate to keep the price of rent high,” said Acting Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “Today’s action against RealPage and six major landlords seeks to end their practice of putting profits over people and make housing more affordable for millions of people across the country.”
The amended complaint alleges that the six landlords actively participated in a scheme to set their rents using each other’s competitively sensitive information through common pricing algorithms. Along with using RealPage’s anticompetitive pricing algorithms, these landlords coordinated through a variety of means, including:
- Directly communicating with competitors’ senior managers about rents, occupancy, and other competitively sensitive topics. In one example, Greystar supplied Camden with information not only about very recent renewal rates, but also its approach to pricing for the upcoming quarter, its acceptance of RealPage’s pricing recommendations, use of concessions and competitively sensitive information about occupancy. Likewise, executives at Camden and LivCor communicated over the course
- Regularly conducting “call arounds.” During these discussions, euphemistically referred to as “market surveys,” property managers called or emailed competitors to share, and sometimes discuss, competitively sensitive information about rents, occupancy, pricing strategies and discounts.
- Participating in “user groups” hosted by RealPage. For instance, landlords discussed via user groups how to modify the software’s pricing methodology, as well as their own pricing strategies. In one example, LivCor and Willow Bridge executives participated in a user group discussion of plans for renewal increases, concessions and acceptance rates of RealPage rent recommendations.
- Sharing information with competitors about parameters in RealPage’s software. As an example, at the request of Willow Bridge’s director of revenue management, Greystar’s director of revenue management supplied its standard auto-accept parameters for RealPage’s software, including the daily and weekly limits and the days of the week for which Greystar used “auto-accept.”
The Justice Department also announced a proposed consent decree that, if approved by the court, would resolve its claims against Cortland, a landlord that manages over 80,000 rental units in 13 states. Under the proposed consent decree, Cortland would cooperate in the Justice Department’s investigation and litigation and be barred from, among other things:
- Using competitors’ competitively sensitive data to train or run any pricing model;
- Using third-party software or algorithms to price apartments without the supervision of a court-appointed monitor; and
- Soliciting, disclosing or using any competitively sensitive information with any other property manager as part of setting rental prices or generating rental pricing recommendations.
As required by the Tunney Act, the proposed consent decree, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed consent decree during a 60-day comment period to Chief, Technology and Digital Platforms Section, Antitrust Division, Department of Justice, 450 Fifth Street NW, Suite 8600, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Middle District of North Carolina may enter the final judgment upon finding it is in the public interest.
Co-plaintiffs in the case are the Attorneys General of California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee and Washington.
Greystar is headquartered in Charleston, South Carolina; LivCor and Cushman & Wakefield (whose residential property management business formerly operated independently as Pinnacle) are headquartered in Chicago; Willow Bridge (formerly known as Lincoln Residential) is headquartered in Dallas; Camden is headquartered in Houston; and Cortland is headquartered in Atlanta. All manage multifamily apartment buildings; several own some or all of the properties under their management.
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Duo Sentenced for Armed Robberies in Forsyth and Randolph CountiesRead the Press Release
GREENSBORO – Two Anson County residents who pleaded guilty to Hobbs Act robberies and firearms charges have been sentenced, announced Sandra J. Hairston, United States Attorney for the Middle District of North Carolina.
In August 2024, BRANDON DRELLE WALL, age 35, of Wadesboro, North Carolina, and WILLIAM CHAVIS DUNLAP, JR., age 29, of Morven, North Carolina, pleaded guilty to robbing a sweepstakes business in Winston-Salem in June 2022, and another in Liberty in August 2022. Each defendant also pleaded guilty to brandishing a firearm during and in furtherance of a crime of violence.
WALL was sentenced on October 30, 2024, to consecutive terms of 138 months imprisonment and 84 months imprisonment, plus 5 years supervised release.
DUNLAP was sentenced today to consecutive terms of 110 months imprisonment and 84 months imprisonment, plus 5 years supervised release.
Both sentencing hearings were held in Greensboro, North Carolina, before United States District Judge William L. Osteen, Jr. In addition to prison time, WALL and DUNLAP were ordered to pay restitution and forfeited their interests in seven firearms plus multiple magazines and rounds of ammunition.
According to court documents, WALL and DUNLAP wore masks and threatened employees with guns in an effort to gain access to business safes. During the robbery in Liberty, the defendants also forced patrons to the floor at gunpoint. WALL and DUNLAP took a phone, wallet, $1,400, and two guns in the Winston-Salem robbery. A total of $8,650 was stolen during the Liberty robbery. After his arrest, WALL admitted he also robbed a gas station in Richmond County, and DUNLAP admitted to robbing a discount store in Anson County.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Liberty Police Department, Winston-Salem Police Department, Anson County Sheriff's Office, Richmond County Sheriff's Office, Wadesboro Police Department, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted by Special Assistant United States Attorney Mary Ann Courtney.
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Cabarrus County Business Owner Sentenced to Prison for Tax CrimeRead the Press Release
GREENSBORO – A Concord, North Carolina man has been sentenced to prison for willfully failing to collect or pay over taxes, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
RONALD JAMES McMURPHY, age 50, was sentenced on December 12, 2024, to 18 months in prison by the Honorable Catherine C. Eagles, Chief United States District Judge in the United States District Court for the MDNC. At the conclusion of his active term of imprisonment, McMURPHY will be subject to a three -year term of supervised release. He was also ordered to pay $712,017 in restitution. McMURPHY pleaded guilty on September 4, 2024, to failing to truthfully account for and pay over trust fund taxes, a violation of Title 26, United States Code, Section 7202.
According to court documents, McMURPHY was the president of McMurphy Hydraulics, Inc. and was required under law to account for and pay to the Internal Revenue Service (IRS) employment taxes consisting of Social Security, Medicare, and federal income taxes. From the first quarter of 2016 up to and including the third quarter of 2022, McMURPHY willfully failed to do so on behalf of McMurphy Hydraulics, Inc.’s employees and amassed $438,502 in employer tax liability. McMURPHY was also the president of Powertek Equipment, Inc. and required under law to account for and pay to the IRS employment taxes. From the fourth quarter of 2019 up to and including the third quarter of 2022, McMURPHY willfully failed to do so on behalf of Powertek Equipment, Inc.’s employees and accrued $273,515 in employer tax liability.
The case was investigated by IRS Criminal Investigation (IRS-CI). The case was prosecuted by Assistant United States Attorney Laura Jeanne Dildine.
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38 Charged in Alleged Drug Trafficking ConspiracyRead the Press Release
Greensboro, NC – A federal indictment charging 38 defendants with conspiracy to distribute fentanyl, methamphetamine, and cocaine hydrochloride was unsealed today, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
The indictment charges the following individuals with narcotics distribution conspiracy:
[1] NICHOLAS TYLER CURRY, age 30, of Mount Gilead, NC, also known as “Hundough” and “Hondo”;
[2] EMMANUEL MARTIMIANO LEON-SOTO, age 44, of Naco, Mexico, also known as “Manny,” “Jose Manuel Lopez-Castro,” “Jesus Lopez Castro,” “Pedro Beltran Zazueta,” “Pedro Zazueta Beltran,” “Emmanuel Gomez,” “Emanuel Leon,” “Emanuel Leon-Soto,” “Manuel Leon Soto,” “Jose Manuel Lopez Castro,” and “Emanuel Pena Gomez”;
[3] JIMMY MENDOZA ARENAS, age 36, of Phoenix, AZ, also known as “Gordo,” “Jay Jay,” and “JJ”;
[4] CRANDALL ORTAIS INGRAM, age 32, of High Point, NC, also known as “Turk”;
[5] KELLY EMANUEL HARRINGTON, JR., age 31, of Candor, NC;
[6] ERICK LEMAR POLLARD, age 42, of Candor, NC, also known as “Black” and “E”;
[7] JERRY MCCLURE, JR., age 40, of Winston-Salem, NC;
[8] ANTHONY OKURTIS RASHAD LLOYD, age 29, of High Point, NC, also known as “Ant”;
[9] CHRISTOPHER TRELONNIE EVERETTE, age 31, of Candor, NC, also known as “Bank Rich” and “Bank”;
[10] DAMON LEE INGRAM, age 46, of Candor, NC, also known as “Danky”;
[11] TRENT DASHUN STARNES, age 28, of Mount Gilead, NC, also known as “Trinidad”;
[12] CARMEN VALENZUELA, age 37, of Glendale, AZ;
[13] IVANGIANNI VALENZUELA GONZALEZ, age 20, of Glendale, AZ;
[14] RAY COZART, JR., age 29, of Jackson Springs, NC, also known as “The Mayor,” “Bigrayful DaMayor,” “Big Rayful,” and “Rayful”;
[15] SAMMY SOQUI, age 36, of Tucson, AZ;
[16] BERNARD ESQUIRE CAIN, age 33, of Winston-Salem, NC;
[17] ABEL GEBREHIWET ZERATSION, age 30, of Winston-Salem, NC;
[18] NIKONDA TAYE INGRAM, age 31, of High Point, NC, also known as “Slatt” and “Big Boy”;
[19] CHARLES EUGENE ROBBINS, age 65, of Phoenix, AZ;
[20] ADAN VILLAREAL-GRAJEDA, age 39, of Phoenix, AZ;
[21] JORGE ANTONIO LOPEZ-VALDEZ, age 18, of Glendale, AZ;
[22] LEWIS RONDEZ PRATT, age 34, of Candor, NC;
[23] ADRIAN DEVON HILL, age 54, of Lenoir, NC;
[24] PRECIOUS SEQUILA HERRON, age 28, of Tucson, AZ;
[25] SHAINA ALEAH HUNT, age 27, of Fairmont, NC;
[26] SCOTTIE PERETT STANBACK, age 43, of Jackson Springs, NC;
[27] AHMAD RASHAUN SAUNDERS, age 31, of Winston-Salem, NC, also known as “Heart”;
[28] CORNEILLOUS DEONTE STALEY, age 33, of Ellerbe, NC, also known as “Sosa”;
[29] SANIYAH JENAY MCCORKLE, age 19, of Cherryville, NC;
[30] AMYA KYONNA GORDON, age 21, of Mount Gilead, NC;
[31] KATEY ANN LAMONDS, age 26, of Mount Gilead, NC;
[32] GERMAN LOPEZ-GOMEZ, age 22, of Phoenix, AZ;
[33] XAVIER FABRICE ELLIS, age 27, of Jackson Springs, NC, also known as “Zay”;
[34] CAMARIUS KISON PHILLIPS, age 22, of Candor, NC, also known as “CBo”;
[35] CODY ANTHONY CURRY, age 29, of Tucson, AZ, also known as “Boss Curry,” “El Jefe,” and “Boss Man”;
[36] TERELL MYHIEM BALDWIN, age 22, of Troy, NC, also known as “Backstreet”;
[37] MICHAEL WILLIAM CURTIS, age 49, of Archdale, NC; and
[38] JUSTIN RAND ALLEN, age 35, of Candor, NC.
The indictment also charges 10 of the defendants named above with conspiracy to launder the proceeds of the drug trafficking scheme. Those charged with money laundering conspiracy include NICHOLAS TYLER CURRY, EMMANUEL MARTIMIANO LEON-SOTO, JIMMY MENDOZA ARENAS, CRANDALL ORTAIS INGRAM, ANTHONY OKURTIS RASHAD LLOYD, TRENT DASHUN STARNES, CARMEN VALENZUELA, PRECIOUS SEQUILA HERRON, SHAINA ALEAH HUNT, and CODY ANTHONY CURRY.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the defendants face up to life in prison for narcotics conspiracy, and up to 20 years for money laundering conspiracy. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
As of today, 37 of the 38 defendants are in custody. Of 26 defendants arrested today, 18 will have initial court appearances today or tomorrow before U.S. Magistrate Judge Joi E. Peake of the U.S. District Court for the Middle District of North Carolina (MDNC). Eight defendants were arrested outside the MDNC and will have initial appearances in the districts of arrest. Eleven other defendants—NICHOLAS TYLER CURRY, JIMMY MENDOZA ARENAS, CRANDALL ORTAIS INGRAM, JERRY MCCLURE, JR., BERNARD ESQUIRE CAIN, ABEL GEBREHIWET ZERATSION, ADAN VILLAREAL-GRAJEDA, LEWIS RONDEZ PRATT, AHMAD RASHAUN SAUNDERS, GERMAN LOPEZ-GOMEZ, and CAMARIUS KISON PHILLIPS—are currently in federal or state custody on related charges and will be arraigned on these charges at a later date. One defendant remains at large.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Investigating agencies include the United States Postal Inspection Service, Homeland Security Investigations, United States Drug Enforcement Administration, Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, United States Marshals Service, North Carolina Alcohol Law Enforcement, Moore County Sheriff’s Office, Harnett County Sheriff’s Office, Fayetteville Police Department, Montgomery County Sheriff’s Office, Stanly County Sheriff’s Office, Candor Police Department, Mesa (Arizona) Police Department, Davie County Sheriff’s Office, Forsyth County Drug Task Force, Mooresville Police Department, Rowan County Sheriff’s Office, and Surry County Sheriff’s Office.
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Justice Department Secures Agreement with Healthcare Facility Services Provider to Resolve Citizenship Status Discrimination ClaimsRead the Press Release
The Justice Department announced today that it secured an agreement with Pennsylvania-based HCSG East LLC and its parent company, Healthcare Services Group Inc. (HCSG), a nationwide provider of housekeeping, laundry and food services for healthcare and nursing facilities. The agreement resolves the department’s determination that HCSG discriminated against non-U.S. citizens with permission to work in the United States when hiring at its Siler City, North Carolina, location, and engaged in unfair practices concerning work authorization documents because of a worker’s status as a non-U.S. citizen.
“Employers cannot erect unlawful discriminatory barriers to work that exclude entire categories of workers with permission to work in the United States, based on citizenship status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold employers accountable when they violate our nation’s federal civil rights laws.”
After conducting an investigation based on a worker’s complaint, the Civil Rights Division’s Immigrant and Employee Rights Section (IER) concluded that HCSG discriminated against a worker by refusing to honor her valid document showing her permission to work because of her citizenship status. IER’s investigation also determined that HCSG had a policy of unlawfully refusing to hire certain workers who had permission to work but were not U.S. citizens or lawful permanent residents — such as persons granted asylum or refugee status by the federal government — at its Siler City location from at least February 2022 to at least December 2022.
Under the settlement, HCSG will pay a civil penalty to the United States, and provide backpay to an affected worker. The agreement also requires HCSG to train its personnel on the Immigration and Nationality Act (INA)’s requirements, revise its employment policies, broadly recruit workers, avoid unnecessary English-language requirements in its job ads and be subject to departmental monitoring. The INA’s anti-discrimination provision prohibits employers from asking for specific or unnecessary documents because of a worker’s citizenship, immigration status or national origin when checking permission to work.
IER is responsible for enforcing the INA’s anti-discrimination provision. This law prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Find more information on how employers can avoid discrimination in recruitment, hiring and employment eligibility verification on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify), or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a live webinar; watch an on-demand presentation; or visit IER’s English and Spanish websites.
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Court Orders North Carolina Pharmacy to Pay $500,000 Penalty and Enters Injunction to Prevent Filling Illegal Controlled Substance PrescriptionsRead the Press Release
WASHINGTON – A federal court ordered an Elkin, North Carolina, pharmacy to pay a $500,000 penalty and enjoined the pharmacy and its pharmacists from dispensing controlled substances, including opioids, without taking steps to help ensure the drugs will not be abused or diverted.
The consent decree resolves a complaint filed by the United States on Nov. 27, which alleged that Elk Pharmacy Inc., Larry Irwin, the pharmacy’s owner and pharmacists Susan Baker, S. Jason Couch, Beth Pence and Lori Wyble filled prescriptions in violation of the Controlled Substances Act (CSA). The complaint alleges that the defendants dispensed prescription opioids while disregarding numerous “red flags” — that is, obvious indications of drug abuse, drug diversion and drug-seeking behavior. For example, according to the complaint, the defendants filled dangerous combination prescriptions; filled prescriptions for long-term, high-dose opioids that exceeded known recommendations for treating pain; filled prescriptions for patients who appeared to be “shopping” for doctors or pharmacies; and filled prescriptions written by prescribers known to be suspected of illegal prescribing, including one doctor who the North Carolina Medical Board had barred from prescribing controlled substances.
“Pharmacists have a duty to help protect consumers from the life-threatening dangers of controlled substance abuse,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The department will continue to work with its law enforcement partners to hold medical professionals accountable when they fail to fulfill that duty.”
“Pharmacists are trained professionals who cannot simply rubber-stamp doctors’ prescriptions,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “They have an independent responsibility to ensure that the prescriptions they fill are for a legitimate medical purpose.”
“The pharmacists at Elk Pharmacy Inc. had a corresponding responsibility, along with the prescribing practitioners, to only dispense prescriptions for a legitimate medical purpose,” said Special Agent in Charge Robert J. Murphy of the DEA Atlanta Division. “The DEA will continue to pursue healthcare providers who are not in compliance with mandatory regulations.”
The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction. The injunction entered by U.S. District Judge Thomas D. Schroeder for the Middle District of North Carolina prohibits the defendants from filling certain “red flag” prescriptions and requires the defendants to fill other orders only after receiving documentation justifying the prescriptions.
The government was represented by Senior Litigation Counsel Donald R. Lorenzen of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Cassie Crawford for the Middle District of North Carolina, with substantial assistance from DEA Diversion Investigator Heidi Crater and Intelligence Analyst William J. Morris of the DEA Greensboro Resident Office’s Diversion Group.
For more information about the enforcement efforts of the Consumer Protection Branch visit www.justice.gov/civil/consumer-protection-branch.
The claims resolved by the consent decree announced today are allegations only. There has been no determination of liability.
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Greensboro Man Who Entered Elementary School with Firearm SentencedRead the Press Release
GREENSBORO – JONATHAN CAMERON COLEY was sentenced today to 42 months in prison after being convicted of a firearm offense, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
COLEY, age 26, pleaded guilty on September 4, 2024, to possession of a firearm by an unlawful user of a controlled substance.
According to evidence in the court record, on April 13, 2024, a Greensboro Police Department (GPD) officer responded to Irving Park Elementary School at approximately 6:00 a.m. in reference to a burglar alarm activation. The GPD officer found the door to the gymnasium was propped open by a basketball goal. He cleared the interior of the school and did not locate any further suspicious activity or persons inside. Subsequent review of surveillance camera footage showed a newer model, blue Dodge Challenger arriving in the area at 5:23 a.m. on April 13, 2024. The Challenger was seen parking near the front entrance of the school. A white male walked into camera view and then proceeded back to the Challenger and left. The suspect was later identified by GPD as COLEY. At 5:48 a.m. on the surveillance video, COLEY reappeared on camera on the school property, this time armed with a long gun. COLEY entered the school through a door leading to the gym. The door appeared to be unlocked or unsecured. COLEY was then captured on surveillance video walking through the gym and entering the main lobby of the school, still armed with a long gun. COLEY walked down a hallway and eventually exited the school through the kindergarten entrance doors and walked away from the school with the firearm.
COLEY was arrested on state warrants for Breaking and/or Entering and Possession of a Firearm on School Grounds. During the arrest, officers detected an odor of marihuana coming from COLEY’s vehicle. A search of the vehicle produced two bags of edible THC products, multiple bags of marihuana, two marihuana cigarettes, a digital scale, marihuana grinders, and several plastic bags used to store marihuana. During interviews subsequent to his arrest, COLEY admitted to using methamphetamine two to three times a day.
COLEY was sentenced today to 42 months imprisonment and 3 years of supervised release by the Honorable Catherine C. Eagles, Chief United States District Judge in the United States District Court for the Middle District of North Carolina.
The case was investigated by the Greensboro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Nicole R. DuPré.
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Durham Man Who Fled from Law Enforcement Sentenced to 12 Years in PrisonRead the Press Release
GREENSBORO – A Durham man who pleaded guilty to a firearm charge has been sentenced, announced Sandra J. Hairston, United States Attorney for the Middle District of North Carolina.
MARIO DEANDRE TAYLOR, age 44, was sentenced yesterday, November 12, 2024, to 144 months of imprisonment and 3 years of supervised release. Sentencing was held in Greensboro, North Carolina, before United States District Judge William L. Osteen, Jr.
TAYLOR pleaded guilty in August to one count of felon in possession of a firearm, a Smith & Wesson .40 caliber handgun.
According to court documents, on October 5, 2023, members of the Durham County Sheriff’s Office patrol division attempted to apprehend TAYLOR, who had outstanding state warrants for armed robberies, felony larcenies, assault on a law enforcement officer, aggravated assault, and robbery with a dangerous weapon, among other alleged crimes that took place between July 28, 2023, and October 5, 2023. Around 11:00 p.m. that night, TAYLOR, who had already eluded capture twice that day, led deputies on a high-speed chase through residential and business areas in Durham, driving at high rates of speed, running through stop signs and stop lights, side-swiping a truck, and nearly hitting a city bus. Eventually, TAYLOR slowed down on South Buchanan Boulevard in a residential neighborhood, jumped out of the vehicle with a loaded weapon in his possession, and ran. After a short foot chase, TAYLOR was arrested but did not have a gun on his person. Approximately fifteen to twenty feet from the location of TAYLOR’s arrest, a K-9 found the loaded .40 caliber handgun that TAYLOR had thrown during the pursuit.
The case was investigated by the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force (SSTF) and the Durham County Sheriff’s Office. The lead investigator was an FBI Task Force Officer from the Durham County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Laura Jeanne Dildine.
Since 1992, the FBI's Safe Streets Violent Crime Initiative has successfully aligned FBI Agents, state and local law enforcement investigators, and federal and state prosecutors onto SSTFs to reduce violent crime. This nationwide initiative brings resources together in a “force multiplier concept” and utilizes the expertise of each agency. SSTFs focus primarily upon street gang and drug-related violence through sustained, proactive, coordinated investigations to obtain prosecutions on violations such as racketeering, drug conspiracy, and firearms violations.
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Justice Department to Monitor Compliance in Alamance CountyRead the Press Release
GREENSBORO, NC – United States Attorney Sandra J. Hairston for the Middle District of North Carolina (MDNC) announced today that the Justice Department will monitor compliance with federal voting rights laws in Alamance County for the Nov. 5 general election.
The Justice Department enforces federal voting rights laws that protect the rights of all eligible citizens to access the ballot. The department regularly deploys its staff to monitor for compliance with federal civil rights laws in elections in communities all across the country.
The Justice Department’s Civil Rights Division will coordinate the effort. Monitors will include Justice Department personnel, who will contact state and local election officials as needed throughout Election Day.
The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Uniformed and Overseas Citizens Absentee Voting Act and Civil Rights Acts. The division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) to ensure that persons with disabilities have a full and equal opportunity to vote. The division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin, or religion.
On Election Day, Civil Rights Division personnel will be available all day to receive questions and complaints from the public related to possible violations of federal voting rights laws. Reports may be made through the department’s website www.civilrights.justice.gov or by calling toll-free at 800-253-3931. The MDNC U.S. Attorney’s Office will also be available to receive complaints on Election Day at 336-332-6362.
Individuals with questions or complaints related to the ADA may call the department’s toll-free ADA information hotline at 800-514-0301 or 833-610-1264 (TTY) or submit a complaint through a link on the department’s ADA website at www.ada.gov.
Complaints related to any disruptions at a polling place should always be reported to local election officials (including officials based in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the department after local authorities have been contacted.
More information about voting and elections, including guidance documents and other resources, is available at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.
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Durham Man Sentenced for Robbery and Firearms OffensesRead the Press Release
GREENSBORO – A Durham, North Carolina man was sentenced today in Winston-Salem to more than 11 years in prison after pleading guilty to robbery and a related firearm charge, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
ABDUL KAREEM RASHEED, age 47, was sentenced to consecutive sentences of 51 months imprisonment (Count One) and 84 months imprisonment (Count Two), plus 3 years supervised release, by the Honorable Loretta C. Biggs, United States District Judge in the United States District Court for the MDNC. In addition to prison and supervision, RASHEED was ordered to pay $538 in restitution and to forfeit a 9mm pistol.
According to court records, on October 12, 2022, RASHEED entered a BP gas station on Roxboro Road in Durham wearing a black ski mask and armed with a handgun. During the robbery, RASHEED pointed the gun at the clerk and threatened to shoot him. RASHEED collected money from two cash registers and took four packs of cigarettes before fleeing. The clerk called 911 and Durham Police Department (DPD) officers responded. Within minutes, officers were able to track RASHEED to the residence where he was staying, and where he was ultimately arrested. After obtaining a search warrant, DPD officers searched the residence and found evidence linked to the robbery including a ski mask, 9 mm handgun, and currency matching the denominations stolen from the BP gas station.
RASHEED pleaded guilty on June 3, 2024, to one count of interference with commerce by robbery, in violation of 18 U.S.C. § 1951(a), and one count of brandishing a firearm during and in relation to a crime of violence, in violation of 18 U.S.C. § 924(c)(1)(A)(ii).
The case was investigated by the Durham Police Department and the Federal Bureau of Investigation. The case was prosecuted by MDNC Assistant United States Attorneys Robert A. J. Lang and Lindsey A. Freeman.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Maryland Man Sentenced for Covid-19 Relief FraudRead the Press Release
GREENSBORO, NC – A Maryland resident was sentenced yesterday for conspiracy to file fraudulent loan applications seeking approximately $3.6 million in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, announced United States Attorney for the Middle District of North Carolina Sandra J. Hairston.
BENNETT ABABIO, age 51, of Clarksville, Maryland, was sentenced to 35 months imprisonment and 3 years supervised release by the Honorable William L. Osteen, Jr., United States District Judge in the United States District Court for the Middle District of North Carolina. In addition, ABABIO was ordered to pay restitution in the amount of $3,991,372.96.
According to court documents, between May 2020 and December 2021, ABABIO conspired to submit fraudulent Paycheck Protection Program loan and forgiveness applications for himself and others, including an individual located in Greensboro, North Carolina. ABABIO owned, or partially owned, five companies for which ABAIO submitted fraudulent PPP applications. In total, ABABIO received $2,581,833 in PPP loans for his companies. The PPP applications contained false statements about the payroll expenses of each company, which the SBA used to calculate the amount of PPP funds to which the applicant-companies would be entitled. Separately, ABABIO helped others prepare fraudulent PPP applications, resulting in over $1 million in additional PPP loans being disbursed to ABABIO’s clients.
“Our prosecutors will continue to seek active prison sentences for fraudsters who stole federal dollars intended to support businesses during the pandemic,” said U.S. Attorney Sandra J. Hairston. “We are grateful to IRS-CI and other agencies that investigate this unconscionable conduct and help us hold defendants accountable.”
“During a global pandemic, the defendant committed fraud to gain funds designated to help struggling individuals and businesses,” said Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service Criminal Investigation (IRS-CI), Charlotte Field Office. “We will continue to work with our local, state, and federal law enforcement partners to prosecute those who abuse these programs.”
The Internal Revenue Service – Criminal Investigation investigated the case. It was prosecuted by Assistant United States Attorney Ashley Waid.
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Winston-Salem Man Involved in Two Car Chases SentencedRead the Press Release
GREENSBORO – A Winston-Salem, North Carolina man was sentenced today in Greensboro to 12 years in prison after pleading guilty to two firearm charges, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
AMARI JAQUEZ HAIRSTON, age 21, was sentenced to consecutive sentences of 60 months imprisonment (Count Two) and 84 months imprisonment (Count Six), plus 5 years supervised release, by the Honorable William L. Osteen, Jr., United States District Judge in the United States District Court for the MDNC. In addition to prison time, HAIRSTON was ordered to forfeit two Glock handguns, two machine gun conversion devices, extended magazines, and multiple rounds of ammunition.
HAIRSTON pleaded guilty on August 7, 2024, to two counts of possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c)(1)(A)(i).
According to court records, the charges against HAIRSTON relate to two separate incidents:
On July 15, 2022, Winston-Salem Police Department (WSPD) officers looking for a suspect in a gang-related shooting attempted to stop a black Honda carrying four people. The driver fled, traveling at extremely high speeds on Silas Creek Parkway and weaving in and out of traffic During the chase, pursuing officers saw HAIRSTON, who was a passenger in the back seat, throw drugs and guns from the left rear passenger window. WSPD officers and Forsyth County Sheriff’s Office (FCSO) deputies stopped and located items HAIRSTON threw from the black Honda while others continued the pursuit. The Honda was intentionally bumped by a FCSO deputy on Reynolda Road and wrecked. Items that HAIRSTON threw from the Honda included two Glock handguns, a large capacity magazine, ammunition, a baggie containing 5.8 grams of fentanyl, and approximately 340 grams of marijuana.
On October 11, 2023, WSPD officers attempted to conduct a traffic stop on a blue Dodge Charger traveling north on Polo Road at a high rate of speed. The driver of the Charger fled and, while attempting to evade the police vehicle, crossed the double yellow line and collided with a tractor trailer heading west on Akron Drive. After the wreck, the driver, later identified as HAIRSTON, fled on foot. The Dodge Charger HAIRSTON was operating was stolen from Charlotte, North Carolina, on September 3, 2023. At the time of the theft, the vehicle contained three firearms, none of which have been recovered. In a search of the stolen Charger, officers located HAIRSTON’s North Carolina ID, a Glock handgun and a Machine Gun Conversion Device or “switch,” approximately 50 grams of marijuana packaged in individual baggies, a scale, 15 pills and several pill fragments containing fentanyl, and other controlled substances.
The case was investigated by the Winston-Salem Police Department, Forsyth County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, and Firearms. The case was prosecuted by MDNC Assistant United States Attorney Robert A. J. Lang.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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DOJ Establishes Local Contacts for November 2024 ElectionRead the Press Release
GREENSBORO, NC – United States Attorney Sandra J. Hairston for the Middle District of North Carolina announced today that Assistant United States Attorney (AUSA) JoAnna McFadden will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election. AUSA McFadden has been appointed to serve as the District Election Officer (DEO) for the Middle District of North Carolina, and in that capacity is responsible for overseeing the district’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
“Free and fair elections require that every eligible citizen must be able to vote without interference or discrimination, and election officials and staff must be able to serve without being subject to unlawful threats of violence,” said United States Attorney Hairston. “The Department of Justice will always work tirelessly to protect the integrity of the election process. We all must ensure that those who are entitled to vote can do so if they choose, and that those who seek to corrupt the voting franchise –the cornerstone of American democracy – are brought to justice.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO McFadden will be on duty in this District while the polls are open. She can be reached by the public at the following telephone number: 336-332-6362.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI office can be reached by the public at (704) 672-6100 and callers should ask to speak with the Election Crimes Coordinator.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.
United States Attorney Hairston said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
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Man Sentenced for Robbery and Intimidation of a Witness by Attempted MurderRead the Press Release
GREENSBORO – A New York man was sentenced yesterday in Greensboro, North Carolina, to 35 years in prison after pleading to robbery, firearm, and intimidation charges related to an attempted murder stemming from conduct in the Middle District of North Carolina and the Southern District of New York, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
RYAN LEWIS LITTLE, age 40, of New York, was sentenced to a 420-month term of imprisonment and 5 years supervised release by the Honorable William L. Osteen, Jr., United States District Judge in the United States District Court for the MDNC. In addition to prison time, LITTLE was ordered to pay restitution in the amount of $56,970.75.
LITTLE pleaded guilty on May 10, 2024, to interference with commerce by robbery, in violation of 18 U.S.C. § 1951(a), and retaliating against a witness by attempted murder, in violation of 18 U.S.C. § 1513(a)(1)(B), for conduct occurring in the MDNC. On June 20, 2024, he pleaded guilty to a separate charge for interference with commerce by robbery, in violation of 18 U.S.C. § 1951(a), and possession of a firearm in furtherance of a crime of violence, in violation of 18 U.S.C. § 924(c), for incidents occurring in the Southern District of New York.
According to court records, on April 8, 2022, at approximately 7:00 PM, Greensboro Police Department (GPD) officers responded to a report of attempted armed robbery at the Chemistry Nightclub Food Truck located in the parking lot of 2901 Spring Garden Street, Greensboro, NC. The food truck employee reported that an armed man attempted to rob the food truck at gunpoint. Footage from the food truck’s surveillance cameras showed a man (later identified as LITTLE) walking up the steps of the food truck, pulling out a silver handgun, pointing it at the food truck employee and asking, “Where is the money?” The employee told LITTLE that there was no money. LITTLE then pushed the victim and ran from the food truck.
The Chemistry Nightclub Food Truck attempted robbery was one in a series of robberies that law enforcement officers had been investigating since March 2022. A witness, Victim-1, spoke with law enforcement as part of the ongoing investigation. In retaliation for speaking with the officers, on the morning of April 12, 2022, LITTLE shot Victim-1 in the face. He then fled North Carolina.
On April 20, 2022, at approximately 10:30 pm, New York Police Department (NYPD) officers arrived at the scene of a reported robbery at a restaurant. An employee stated that a man entered the restaurant, brandished a silver firearm partially concealed beneath a newspaper, and took approximately $1,500 from the cash register. The employee followed the suspect to a nearby park. While canvassing the area, officers saw LITTLE emerge from the bushes and attempt to flee the area. Officers chased him and he was apprehended moments later with approximately $1,100 cash on him. Officers traced the path LITTLE had fled and recovered a loaded silver pistol. After his arrest, a witness approached the NYPD officers and told them that shortly after robbing the restaurant LITTLE attempted to carjack him.
The case was investigated by the Greensboro Police Department, Federal Bureau of Investigation, Bureau of Alcohol Tobacco, and Firearms, and New York Police Department. The case was prosecuted by MDNC Assistant United States Attorneys Nicole DuPré and Lindsey Freeman, SDNY Assistant United States Attorney Jonathan Bodansky, and former MDNC Assistant United States Attorney Tanner Kroeger.
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Justice Department Secures Agreement with Durham, North Carolina, to End Discriminatory Hiring Practices in City’s Fire DepartmentRead the Press Release
WASHINGTON – The Justice Department announced today that it has secured a settlement agreement with the City of Durham (City), North Carolina, to resolve the department’s claim that the hiring process for firefighters in the Durham Fire Department (DFD) violates Title VII of the Civil Rights Act. Specifically, the department alleges that the City’s fire department screens applicants with a written test that discriminates against Black candidates.
Title VII is a federal statute that prohibits employment discrimination based on race, sex, color, national origin and religion. Title VII prohibits not only intentional discrimination but also employment practices that result in a disparate impact on a protected group, unless such practices are job related and consistent with business necessity.
The settlement agreement resolves a civil pattern or practice investigation the Civil Rights Division opened in February 2020. As part of the investigation, the division conducted an in-depth review of DFD’s hiring practices, applicant data and other information received from the DFD. The division concluded that the fire department was using a written test that does not meaningfully distinguish between applicants who can and cannot perform the job of a firefighter. The test also disqualified Black applicants from employment at significantly disproportionate rates. The department thus concluded that the test violates Title VII.
“Discriminatory employment tests do more than cost applicants a fair chance to compete for public service jobs like firefighting; they also prevent communities from being served in these crucial positions by the most qualified candidates for the job,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The under-representation of Black people in the fire department workforce in Durham, and across the country, undermines public safety efforts. This settlement agreement requires the Durham Fire Department to reform its unlawful hiring process and provide monetary and other relief to those already harmed. The Justice Department will continue to work to ensure that all qualified applicants have a fair and equal opportunity to serve their communities.”
“Employers should identify and eliminate practices that have a disparate impact based on race,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “The Justice Department will continue to work to eliminate discriminatory policies that deprive qualified applicants of a fair chance to compete for employment opportunities.”
The complaint, filed yesterday in the Middle District of North Carolina, alleges that the City’s uses of the written test called the Comprehensive Examination Battery (CEB) disproportionately exclude Black candidates from employment as firefighters. The department further alleges that DFD’s uses of the CEB are not job-related and consistent with business necessity, and thus violate Title VII.
Under the terms of the consent decree also filed yesterday, DFD will:
- Adopt a written test that does not discriminate in violation of Title VII and provide data to the department on the administration of the new test to ensure compliance;
- Pay $980,000 in back pay to applicants who were disqualified by DFD’s uses of the challenged test; and
- Hire up to 16 applicants who were unfairly disqualified by the challenged test and who successfully complete the new firefighter selection process.
The full and fair enforcement of Title VII is a top priority of the Civil Rights Division. The division has issued a fact sheet on combating hiring discrimination by police and fire departments to help applicants for public safety jobs understand their rights to be free from discriminatory hiring processes. More information about the Civil Rights Division can be found at https://www.justice.gov/crt.
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Justice Department Secures Agreement with Durham, North Carolina, to End Discriminatory Hiring Practices in City’s Fire DepartmentRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with the City of Durham (City), North Carolina, to resolve the department’s claim that the hiring process for firefighters in the Durham Fire Department (DFD) violates Title VII of the Civil Rights Act. Specifically, the department alleges that the City’s fire department screens applicants with a written test that discriminates against Black candidates.
Title VII is a federal statute that prohibits employment discrimination based on race, sex, color, national origin and religion. Title VII prohibits not only intentional discrimination but also employment practices that result in a disparate impact on a protected group, unless such practices are job related and consistent with business necessity.
The settlement agreement resolves a civil pattern or practice investigation the Civil Rights Division opened in February 2020. As part of the investigation, the division conducted an in-depth review of DFD’s hiring practices, applicant data and other information received from the DFD. The division concluded that the fire department was using a written test that does not meaningfully distinguish between applicants who can and cannot perform the job of a firefighter. The test also disqualified Black applicants from employment at significantly disproportionate rates. The department thus concluded that the test violates Title VII.
“Discriminatory employment tests do more than cost applicants a fair chance to compete for public service jobs like firefighting; they also prevent communities from being served in these crucial positions by the most qualified candidates for the job,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The under-representation of Black people in the fire department workforce in Durham, and across the country, undermines public safety efforts. This settlement agreement requires the Durham Fire Department to reform its unlawful hiring process and provide monetary and other relief to those already harmed. The Justice Department will continue to work to ensure that all qualified applicants have a fair and equal opportunity to serve their communities.”
“Employers should identify and eliminate practices that have a disparate impact based on race,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “The Justice Department will continue to work to eliminate discriminatory policies that deprive qualified applicants of a fair chance to compete for employment opportunities.”
The complaint, filed yesterday in the Middle District of North Carolina, alleges that the City’s uses of the written test called the Comprehensive Examination Battery (CEB) disproportionately exclude Black candidates from employment as firefighters. The department further alleges that DFD’s uses of the CEB are not job-related and consistent with business necessity, and thus violate Title VII.
Under the terms of the consent decree also filed yesterday, DFD will:
- Adopt a written test that does not discriminate in violation of Title VII and provide data to the department on the administration of the new test to ensure compliance;
- Pay $980,000 in back pay to applicants who were disqualified by DFD’s uses of the challenged test; and
- Hire up to 16 applicants who were unfairly disqualified by the challenged test and who successfully complete the new firefighter selection process.
The full and fair enforcement of Title VII is a top priority of the Civil Rights Division. The division has issued a fact sheet on combating hiring discrimination by police and fire departments to help applicants for public safety jobs understand their rights to be free from discriminatory hiring processes. More information about the Civil Rights Division can be found at www.justice.gov/crt.
Man Sentenced to 63 Months in Ponzi Scheme CaseRead the Press Release
WINSTON-SALEM, N.C. - A former resident of Durham, NC was sentenced to 63 months of imprisonment and ordered to pay restitution totaling $6,170,045.68 after pleading guilty to one count of the use of manipulative and deceptive devices and one count of wire fraud, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
NAYEEM CHOUDHURY, currently of Fort Worth, TX was sentenced to a 63-month term of imprisonment by the Honorable Loretta C. Biggs, United States District Judge in the United States District Court for the Middle District of North Carolina. In addition to prison time, CHOUDHURY was ordered to serve three years of supervised release.
According to court filings, CHOUDHURY, while a resident of Durham, NC, began soliciting option trading investments for his company, Dream Venture Capital Group, LLC, through friends and family networks, as well as through social media accounts and webpages. CHOUDHURY told potential investors that their investments were no-risk because he guaranteed the principal, that he would pay investors exorbitant monthly returns sometimes as high as twenty-five percent, and that he had a proven track record of successful options trading and won far more than he lost. None of these statements were true. In fact, of the eleven months CHOUDHURY traded investor funds before his fraud was identified, he suffered net trading losses in nine of those eleven months. Despite this, CHOUDHURY continued to solicit new investors, repeating the same misrepresentations identified above. He also paid older investors with principal invested by new investors, representing it to be trading gains, in what is colloquially known as a Ponzi scheme.
CHOUDHURY lost over $5 million dollars in investor funds and used other funds for extravagant personal purchases, including an $85,000 Mercedes Benz G63. In total, he was responsible for a loss of $6,170,045.68, victimizing 88 different individuals.
“CHOUDHURY’s mendacity knew no bounds: he mined the trust of friends and family to find new victims, even as the losses were piling up,” said U.S. Attorney Hairston. “We are grateful to the agencies that investigated this unconscionable conduct and helped hold this defendant accountable.”
“CHOUDHURY presented himself as an investment expert promising significant profits with little to no financial risks. He took money from his own family and friends to cover massive trading losses and fund extravagant personal expenses. While fraud of this magnitude can have a lasting impact, we hope CHOUDHURY’s federal prison sentence will bring a sense of justice to his victims,” said Robert M. DeWitt, the FBI Special Agent in Charge in North Carolina.
The investigation was undertaken by Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Ashley E. Waid.
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U. S. Attorney Hairston Announces $48 Million in Justice Department GrantsRead the Press Release
GREENSBORO, NC – United States Attorney Sandra J. Hairston for the Middle District of North Carolina (NCM) today announced that communities, organizations, and programs in the district have been awarded at least $27,949,065 in Department of Justice grants as part of the end-of-year funding cycles of the Department’s Office of Justice Programs and Office on Violence Against Women.
In addition, the North Carolina Courts, State Bureau of Investigation, and Departments of Justice, Public Safety, and Corrections, were awarded more than $20 million in grants for programs and research with state-wide impacts.
“Everyone deserves to feel safe in their community and supported if the unthinkable happens and they become a victim of crime,” said U.S. Attorney Hairston. “These grants help improve public safety, serve crime victims, support America’s youth, advance science, support law enforcement, and promote equal justice for all. I am pleased that the Department of Justice is making these funds available to our community partners and proud of the work we are engaged in, together, to create a safer, more equitable country.”
Office on Violence Against Women (OVW)
Created in 1995 to implement the provisions of the Violence Against Women Act (VAWA) and its subsequent reauthorizations, OVW provides national leadership on domestic violence, sexual assault, dating violence, and stalking. OVW has distributed over $11 billion in funding authorized by VAWA since its enactment. Through its grant programs and partnerships, OVW helps strengthen local responses to domestic violence, sexual assault, dating violence, and stalking and provides funding annually to all 50 states, six territories, and many Tribal nations. By funding essential services for survivors, OVW ensures that communities are better equipped to address these critical issues.
Recent OVW awards for FY24 to entities in NCM total at least $2,997,009 and include the following recipients:
City of Greensboro$500,000.00NC Coalition Against Domestic Violence$114,533.00Alamance County$950,000.00Winston-Salem State University$499,976.00Second Bloom of Chatham, Inc$550,000.00Stand Up - Speak Out of NC$328,500.00Office of Justice Programs
The Office of Justice Programs provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime; advance equity and fairness in the administration of justice; assist victims; and uphold the rule of law. More information about OJP and its program offices – the Bureau of Justice Assistance, Bureau of Justice Statistics, National Institute of Justice, Office of Juvenile Justice and Delinquency Prevention, Office for Victims of Crime, and SMART Office – can be found at www.ojp.gov.
NCM organizations and programs received a total of at least $24,952,056 in funding from OJP in the recent grant-making cycle, including the following:
City of Winston-Salem$300,000.00City of Greensboro$500,000.00City of Durham$549,671.00Justicematters Inc$800,000.00Maggies Outreach Community Economic
Development Center
$705,604.00Research Triangle Institute$17,408,550.00Piedmont Triad Regional Council$862,040.00Randolph County$150,000.00Moore County$900,000.00Rockingham County$900,000.00Alamance County$900,000.00UNC Greensboro$799,995.00PSN funding (NC DPS)$176,196.00These awards include $2.7 million for RTI International and its subrecipients, the Eradicate Hate Global Summit and the International Association of Chiefs of Police, to launch BJA’s new Coordinated Hate Crimes Resource Center; $1.8 million for establishing veterans courts; and $176,198 for Project Safe Neighborhood sites in NCM. More information about these and other OJP awards can be found on the OJP Grant Awards Page.
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Greensboro man sentenced for possession of child pornographyRead the Press Release
GREENSBORO – A 55-year-old Greensboro man was sentenced today to 120 months in prison after pleading guilty to one count of possession of child pornography, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
According to court records, investigators with the Greensboro Police Department (GPD) obtained search warrants for a Greensboro residence and a vehicle belonging to JEFFREY ALLAN HILL after three victims reported to GPD that they were sexually assaulted when they were minors sleeping over at HILL’s house. Subsequent forensic analysis of electronic devices used by HILL revealed more than 13,500 image files and 244 video files of child pornography.
HILL pleaded guilty to one count of possession of child pornography on March 13, 2024.
United States District Court Judge Thomas D. Schroeder sentenced HILL to a 120-month term of imprisonment followed by lifetime supervised release. In addition, HILL was ordered to pay restitution totaling $33,000.00, special assessments totaling $22,100.00, and a $5,000 fine. He also forfeited a computer and two hard drives.
The case was investigated by the Greensboro Police Department and the Department of Homeland Security-Investigations. The case was prosecuted by Assistant United States Attorney K. P. Kennedy Gates.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s 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.
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U. S. Attorney Hairston Cautions Against Disaster Fraud in the Wake of Hurricane HeleneRead the Press Release
GREENSBORO, NC – United States Attorney for the Middle District of North Carolina Sandra J. Hairston today reminded everyone to guard against and report disaster-related fraud following Hurricane Helene.
“The impact of disasters affecting our citizens are not just from the events themselves, but also from fraudsters who take advantage of disaster victims and good-hearted people who want to help those affected,” said U.S. Attorney Hairston. “These criminals take advantage of victims before, during, and after a natural disaster strikes, targeting people when they are most vulnerable, and their methods to commit fraud are wide-ranging. My office works closely with the National Center for Disaster Fraud (NCDF), which tracks and manages complaints of fraudulent activity – like phony charities or fake contractors who prey on victims of hurricanes, floods, tornadoes, and more. If you suspect that someone is trying to take advantage of your situation after a natural disaster or if you are the victim of disaster-related fraud, please contact the NCDF at (866) 720-5721 or online at http://www.justice.gov/DisasterComplaintForm and complete the online form.”
The NCDF is the result of a partnership between the U.S. Department of Justice and various law enforcement and regulatory agencies to form a national coordinating agency within the Criminal Division of the Department of Justice to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for the victims of such fraud.
Here are examples based on over 200,000 disaster fraud complaints submitted to the NCDF:
- Fake charities immediately soliciting donations either using the names of well-known charities or appearing reasonable as related to a disaster;
- Individuals impersonating government officials advising that disaster assistance will be made available should the potential victim provide a sum of money or personal identifiers such as date of birth, social security number, and bank account information (name of financial institution, routing number, and account number);
- Individuals impersonating insurance provider representatives requesting money and personal identifiers as described above;
- Individuals soliciting victims to invest in non-existent businesses and ventures offering recovery efforts such as cleanup, rebuilding, and making structures (homes) more resistant to future disasters (e.g., elevation to minimize future flood risks);
- Individuals overcharging for goods and services needed by victims of disaster (aka price-gouging).
In addition, based on the type of disaster, individuals are frequently victimized by theft of property from businesses and residences abandoned because of a disaster (either evacuation pre-disasters such as flooding, hurricanes, and wildfires or to obtain living accommodations because of damaged apartments and homes).
Recommended Measures to Avoid Becoming a Victim
- Only make donations to known charities and only after contacting the charity directly and not in response to an email, instant message, phone call, text, etc. A recommended step is to research the charity by visiting recognized charity information/rating websites such as the www.Give.org, CharityNavigator.org, and CharityWatch.org.
- Never click on a link in an unsolicited email, instant message, text, etc.
- Never assume that charity solicitations posted on the internet and social media are legitimate.
- Avoid cash donations to charities - use a credit card or pay with a check. Never transmit donations to a named individual.
- Charities do not seek donations via electronic fund (financial institution)/wire transfers.
- Avoid being victimized by impersonators of government officials, insurance companies, investment companies, etc., by terminating the phone call or other exchange of information (e.g., email, texts) and calling the actual government agency, insurance company, and/or investment company directly using a well-advertised/posted phone number and/or email address.
- Check with your state contracting board before hiring a contractor to repair storm damage.
- Cautiously rely on recommendations from family and friends.
- Consider purchasing materials on your own from a reliable supplier and having them delivered to your damaged structure to avoid putting down money before work is started.
- Consider paying for repairs as they are completed.
- Do not be forced into making repair decisions by a high-pressure contractor.
Protect yourself and your neighbors. If you or someone you know has been targeted by fraudsters or been the victim of disaster-related fraud, contact the NCDF at (866) 720-5721 or online at www.justice.gov/DisasterComplaintForm.
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Durham Woman Sentenced to 12 Years in Prison for Sex TraffickingRead the Press Release
GREENSBORO – LESLIE CHEVONNE STOUT was sentenced today to 144 months in prison after being convicted of sex trafficking, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
STOUT, age 43, pleaded guilty on October 16, 2023, to conspiracy to commit sex trafficking by force, threats of force, fraud, and coercion.
Evidence at the trial of STOUT’s codefendant Chester Fletcher Wallace showed that STOUT and Wallace ran a sex trafficking ring based out of a three-bedroom house located in Durham that Wallace rented from July 2021 until late spring of 2022. STOUT and Wallace recruited women who were homeless or suffering from substance abuse, promising them housing and drugs if they came to live at the residence. Once there, all five victims testified they were photographed for advertisements posted for commercial sex posted on sites such as “Mega Personals” and “Skipthegames,” and that STOUT and Wallace set up the “dates” for commercial sex. The victims further testified that STOUT and Wallace established certain house rules that all the victims had to obey and used violence and coercion to enforce the rules of the house.
STOUT was sentenced today to 144 months imprisonment and ten years of supervised release by the Honorable Loretta C. Biggs, United States District Judge in the United States District Court for the Middle District of North Carolina. In addition to prison time, STOUT was ordered to pay restitution in the amount of $914,401.07.
Wallace was sentenced on November 2, 2023, to six life terms of imprisonment, to run concurrent with one another.
The case was investigated by Homeland Security Investigations and the Durham Police Department, with support and assistance from the Durham County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Nicole DuPré and former Assistant United States Attorney Tanner Kroeger.
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Twelve Defendants Sentenced for Violent Home Invasion Robberies to Steal CryptocurrencyRead the Press Release
A Florida man was sentenced to 47 years in prison on Wednesday for his role in a scheme involving a series of home invasion robberies targeting cryptocurrency. Between Sept. 5 and Sept. 12, a total of 12 men have been sentenced for their role in the scheme.
According to court documents and evidence presented at the trial, Remy Ra St Felix, 25, of West Palm Beach, and his co-conspirators stole over $3.5 million from victims through SIM swapping and violent home invasions in which they held victims at gunpoint, assaulted them, and bound them with plastic cable ties. St Felix was convicted on June 25 by a federal jury in Greensboro, North Carolina, after a six-day trial. In addition to his sentence of incarceration, St Felix was sentenced to five years of supervised release and ordered to pay $524,153.39 in restitution.
According to court documents and evidence presented at trial, beginning in late 2020, St Felix’s co-conspirator, Jarod Gabriel Seemungal, 23, of West Palm Beach, and foreign co-conspirators stole cryptocurrency from victims’ accounts at exchanges. They obtained access to the accounts by gaining control of the victims’ phone numbers through SIM swapping. In 2022, Seemungal and his co-conspirators devised the home invasion scheme and recruited St Felix and others to assist with the invasions. St Felix later became the leader of the home invasion crew. In September 2022, St Felix and members of the crew committed violent home invasions in Delray Beach and Homestead, Florida. In Delray Beach, the victims were held at gunpoint in their home. In Homestead, a man and his family were held at gunpoint in their home, and then the man was abducted, held hostage, and beaten, before the man was found by law enforcement 120 miles from his home.
Later in 2022, St Felix and his crew targeted a Little Elm, Texas, man and made several trips to attempt the robbery. In December 2022, Seemungal and a Houston-based crew comprised of Deangelo Lee Contreras, 21, Tristian Rene Gamez, 21, Victor Gonzalez, 27, Jesus Salazar, 24, Cristian Valdez, 21, and Jesus Gerardo Valdez, Jr., 27, all of Houston, Texas, committed the home invasion. The Little Elm man and members of his family were held at gunpoint and restrained in their home for over three hours, during which time members of the crew tortured the man and his mother. The perpetrators stole approximately $150,000.00 in cash, two Rolex watches, and a valuable necklace and pendant.
In April 2023, St Felix and Elmer Ruben Castro, 23, of West Palm Beach, invaded the home of a wife and a husband in Durham, North Carolina. Prior to the invasion, St Felix’s co-conspirators obtained unauthorized access to the couple’s email account and conducted multiple days of surveillance on their home. During the invasion, the men violently assaulted the couple, threatened them with guns, and restrained them with plastic cable ties. They forced the man to provide access to his computer and cryptocurrency exchange account. Seemungal then remotely accessed the computer and stole over $150,000.00 worth of cryptocurrency. Conspirators laundered the funds through anonymity-enhanced cryptocurrencies, as well as “instant exchanges” and decentralized finance platforms that did not conduct know-your-customer checks.
In July 2023, St Felix traveled from Florida to Long Island, New York, to commit a home invasion of a family of five. Before St Felix could do so, however, he was arrested. At the time of his arrest, St Felix was in possession of two firearms and plastic cable ties.
Throughout the conspiracy, the conspirators communicated via an encrypted messaging application to plan their crimes. They identified targets and discussed how to gain entry to homes, the tools required to carry out the crimes, the technical aspects of cryptocurrency, and the patterns of life of their targets.
They also circulated pictures of their targets and their targets’ homes. In addition to the home invasions described above, conspirators used the encrypted messaging application to plan additional home invasion robberies in Fort Lauderdale, Florida; Orlando, Florida; and Georgia. Seemungal and the foreign co-conspirators financed the purchase of rental cars, hotel rooms, and firearms by co-conspirators Haisel Daily, 22, of West Palm Beach, and Ruben Matias Nicolopulos Silva, 22, of Lake Worth, Florida, to use during the robberies.
Seemungal was also sentenced yesterday to 20 years in prison followed by five years of supervised release and ordered to pay $4,038,479.39 in restitution. Seemungal pleaded guilty on December 19, 2023, for his role in the scheme to steal cryptocurrency by hacking victims’ cryptocurrency accounts as well as the home invasion and robbery scheme.
On Feb. 6, Castro pleaded guilty to conspiracy to commit kidnapping and kidnapping. He is scheduled to be sentenced on Oct. 1.
On May 29 and 30, nine of St Felix’s and Seemungal’s co-conspirators pleaded guilty to conspiracy to commit kidnapping, and were sentenced as follows:
- Jose Alfredo Avila, 27, of West Palm Beach, was sentenced on Sept. 11, to 20 years in prison, followed by four years of supervised release and ordered to pay $365,100.00 in restitution.
- Contreras was sentenced on Sept. 5, to 15 years in prison, followed by five years of supervised release and ordered to pay $355,800.00 in restitution.
- Daily was sentenced on Sept. 5, to 25 years in prison, followed by four years of supervised release and ordered to pay $524,153.39 in restitution.
- Gonzalez was sentenced on Sept. 6, to 12 years in prison, followed by three years of supervised release and ordered to pay $355,800.00 in restitution.
- Nathan Noel Quintana, 24, of Royal Palm Beach, Florida, was sentenced on Sept. 6, to 16 years in prison, followed by four years of supervised release and ordered to pay $365,100.00 in restitution.
- Silva was sentenced on Sept. 5, to 12 years in prison, followed by five years of supervised release and ordered to pay $524,153.39 in restitution.
- Cristian Valdez was sentenced on Sept. 6, to 12 years in prison, followed by four years of supervised release and ordered to pay $355,800.00 in restitution.
- Jesus Valdez was sentenced on Sept. 6, to 12 years in prison, followed by four years of supervised release and ordered to pay $355,800.00 in restitution.
- Jesus Manuel Santiago, III, 23, of West Palm Beach, is scheduled to be sentenced on Oct. 1.
Also, on May 29 and 30, Salazar and Gamez pleaded guilty to conspiracy to interfere with commerce through robbery. Salazar was sentenced on Sept. 5, to five years in prison, followed by four years of supervised release and ordered to pay $355,800.00 in restitution. Gamez was sentenced on Sept. 11, to eight years in prison, followed by three years of supervised release and ordered to pay $355,800.00 in restitution.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina; and Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office made the announcement.
The FBI Charlotte Field Office investigated the case, with valuable assistance from the Durham Police Department and the FBI New York, Miami, Houston, Mobile, and Newark Field Offices.
The National Cryptocurrency Enforcement Team (NCET) of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) is partnered with the U.S. Attorney’s Office for the Middle District of North Carolina in prosecuting the case. CCIPS/NCET Trial Attorney and Assistant U.S. Attorney Eric Iverson for the Middle District of North Carolina and CCIPS Trial Attorney Brian Mund are prosecuting the case. The U.S. Attorneys’ Offices for the Southern District of Florida, Southern District of Texas, and Eastern District of Texas provided valuable assistance.
NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within CCIPS, NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, obfuscation services, and infrastructure providers. NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
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Twelve Defendants Sentenced for Violent Home Invasion Robberies to Steal CryptocurrencyRead the Press Release
A Florida man was sentenced to 47 years in prison on Wednesday for his role in a scheme involving a series of home invasion robberies targeting cryptocurrency. Between Sept. 5 and Sept. 12, a total of 12 men have been sentenced for their role in the scheme.
According to court documents and evidence presented at the trial, Remy Ra St Felix, 25, of West Palm Beach, and his co-conspirators stole over $3.5 million from victims through SIM swapping and violent home invasions in which they held victims at gunpoint, assaulted them, and bound them with plastic cable ties. St Felix was convicted on June 25 by a federal jury in Greensboro, North Carolina, after a six-day trial. In addition to his sentence of incarceration, St Felix was sentenced to five years of supervised release and ordered to pay $524,153.39 in restitution.
According to court documents and evidence presented at trial, beginning in late 2020, St Felix’s co-conspirator, Jarod Gabriel Seemungal, 23, of West Palm Beach, and foreign co-conspirators stole cryptocurrency from victims’ accounts at exchanges. They obtained access to the accounts by gaining control of the victims’ phone numbers through SIM swapping. In 2022, Seemungal and his co-conspirators devised the home invasion scheme and recruited St Felix and others to assist with the invasions. St Felix later became the leader of the home invasion crew. In September 2022, St Felix and members of the crew committed violent home invasions in Delray Beach and Homestead, Florida. In Delray Beach, the victims were held at gunpoint in their home. In Homestead, a man and his family were held at gunpoint in their home, and then the man was abducted, held hostage, and beaten, before the man was found by law enforcement 120 miles from his home.
Later in 2022, St Felix and his crew targeted a Little Elm, Texas, man and made several trips to attempt the robbery. In December 2022, Seemungal and a Houston-based crew comprised of Deangelo Lee Contreras, 21, Tristian Rene Gamez, 21, Victor Gonzalez, 27, Jesus Salazar, 24, Cristian Valdez, 21, and Jesus Gerardo Valdez, Jr., 27, all of Houston, Texas, committed the home invasion. The Little Elm man and members of his family were held at gunpoint and restrained in their home for over three hours, during which time members of the crew tortured the man and his mother. The perpetrators stole approximately $150,000.00 in cash, two Rolex watches, and a valuable necklace and pendant.
In April 2023, St Felix and Elmer Ruben Castro, 23, of West Palm Beach, invaded the home of a wife and a husband in Durham, North Carolina. Prior to the invasion, St Felix’s co-conspirators obtained unauthorized access to the couple’s email account and conducted multiple days of surveillance on their home. During the invasion, the men violently assaulted the couple, threatened them with guns, and restrained them with plastic cable ties. They forced the man to provide access to his computer and cryptocurrency exchange account. Seemungal then remotely accessed the computer and stole over $150,000.00 worth of cryptocurrency. Conspirators laundered the funds through anonymity-enhanced cryptocurrencies, as well as “instant exchanges” and decentralized finance platforms that did not conduct know-your-customer checks.
In July 2023, St Felix traveled from Florida to Long Island, New York, to commit a home invasion of a family of five. Before St Felix could do so, however, he was arrested. At the time of his arrest, St Felix was in possession of two firearms and plastic cable ties.
Throughout the conspiracy, the conspirators communicated via an encrypted messaging application to plan their crimes. They identified targets and discussed how to gain entry to homes, the tools required to carry out the crimes, the technical aspects of cryptocurrency, and the patterns of life of their targets. They also circulated pictures of their targets and their targets’ homes. In addition to the home invasions described above, conspirators used the encrypted messaging application to plan additional home invasion robberies in Fort Lauderdale, Florida; Orlando, Florida; and Georgia. Seemungal and the foreign co-conspirators financed the purchase of rental cars, hotel rooms, and firearms by co-conspirators Haisel Daily, 22, of West Palm Beach, and Ruben Matias Nicolopulos Silva, 22, of Lake Worth, Florida, to use during the robberies.
Seemungal was also sentenced yesterday to 20 years in prison followed by five years of supervised release and ordered to pay $4,038,479.39 in restitution. Seemungal pleaded guilty on December 19, 2023, for his role in the scheme to steal cryptocurrency by hacking victims’ cryptocurrency accounts as well as the home invasion and robbery scheme.
On Feb. 6, Castro pleaded guilty to conspiracy to commit kidnapping and kidnapping. He is scheduled to be sentenced on Oct. 1.
On May 29 and 30, nine of St Felix’s and Seemungal’s co-conspirators pleaded guilty to conspiracy to commit kidnapping, and were sentenced as follows:
- Jose Alfredo Avila, 27, of West Palm Beach, was sentenced on Sept. 11, to 20 years in prison, followed by four years of supervised release and ordered to pay $365,100.00 in restitution.
- Contreras was sentenced on Sept. 5, to 15 years in prison, followed by five years of supervised release and ordered to pay $355,800.00 in restitution.
- Daily was sentenced on Sept. 5, to 25 years in prison, followed by four years of supervised release and ordered to pay $524,153.39 in restitution.
- Gonzalez was sentenced on Sept. 6, to 12 years in prison, followed by three years of supervised release and ordered to pay $355,800.00 in restitution.
- Nathan Noel Quintana, 24, of Royal Palm Beach, Florida, was sentenced on Sept. 6, to 16 years in prison, followed by four years of supervised release and ordered to pay $365,100.00 in restitution.
- Silva was sentenced on Sept. 5, to 12 years in prison, followed by five years of supervised release and ordered to pay $524,153.39 in restitution.
- Cristian Valdez was sentenced on Sept. 6, to 12 years in prison, followed by four years of supervised release and ordered to pay $355,800.00 in restitution.
- Jesus Valdez was sentenced on Sept. 6, to 12 years in prison, followed by four years of supervised release and ordered to pay $355,800.00 in restitution.
- Jesus Manuel Santiago, III, 23, of West Palm Beach, is scheduled to be sentenced on Oct. 1.
Also, on May 29 and 30, Salazar and Gamez pleaded guilty to conspiracy to interfere with commerce through robbery. Salazar was sentenced on Sept. 5, to five years in prison, followed by four years of supervised release and ordered to pay $355,800.00 in restitution. Gamez was sentenced on Sept. 11, to eight years in prison, followed by three years of supervised release and ordered to pay $355,800.00 in restitution.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina; and Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office made the announcement.
The FBI Charlotte Field Office investigated the case, with valuable assistance from the Durham Police Department and the FBI New York, Miami, Houston, Mobile, and Newark Field Offices.
The National Cryptocurrency Enforcement Team (NCET) of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) is partnered with the U.S. Attorney’s Office for the Middle District of North Carolina in prosecuting the case. CCIPS/NCET Trial Attorney and Assistant U.S. Attorney Eric Iverson for the Middle District of North Carolina and CCIPS Trial Attorney Brian Mund are prosecuting the case. The U.S. Attorneys’ Offices for the Southern District of Florida, Southern District of Texas, and Eastern District of Texas provided valuable assistance.
NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within CCIPS, NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, obfuscation services, and infrastructure providers. NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
Robeson County Man Who Led Law Enforcement on Two Car Chases Sentenced for Armed RobberyRead the Press Release
GREENSBORO – A Robeson County man convicted of Hobbs Act robbery and brandishing a firearm during a crime of violence has been sentenced, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
SHAWN CRAIG STRICKLAND, age 46, of Maxton, North Carolina, was sentenced on September 11, 2024, to 150 months in prison. STRICKLAND pleaded guilty on April 2, 2024, to interference with commerce by robbery, a violation of Title 18, United States Code, Section 1951(a), and brandishing a firearm during and in relation to a crime of violence, a violation of Title 18, United States Code, Section 924(c)(1)(A)(ii).
According to court records, in the early morning of February 5, 2023, a suspect, later identified as STRICKLAND, entered the County Line Grocery located at 1482 NC Highway 71 North in Maxton in the MDNC, armed with a handgun and disguised. He held the firearm on the counter, demanded the clerk give him the money in the register, and stole $1,894. On February 9, when deputies from Scotland County Sheriff’s Office (SCSO) and Robeson County Sheriff’s Office (RCSO) attempted to apprehend STRICKLAND, he led them on a dangerous car chase, at times through residential areas, while weaving through traffic, swerving across the lane divider, driving with his foot on the dashboard and out of the driver’s side window, and drinking a beer. STRICKLAND evaded capture as he drove into the woods.
SCSO and RCSO enlisted the assistance of the U.S. Marshals Service in apprehending STRICKLAND. On April 4, 2023, law enforcement located STRICKLAND, and again he led them on a dangerous car chase, avoiding spike strips, driving into oncoming traffic, and running cars off the road. When his car became stuck in muddy terrain, he exited the car with a loaded shotgun. As law enforcement ran after him, he dropped the shotgun but refused to obey any other commands as he ran through woods and pastures until law enforcement captured and arrested him.
STRICKLAND was sentenced by the Honorable Thomas D. Schroeder, United States District Judge in the United States District Court for the MDNC. At the conclusion of his active term of imprisonment, STRICKLAND will be subject to a five-year term of supervised release. He was also ordered to pay $1,894 in restitution.
The case was investigated by the Scotland County Sheriff's Office, Robeson County Sheriff's Office, United States Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Laure Jeanne Dildine.
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North Carolina Auto Parts Seller and Its Owner to Pay $10M for Making, Selling and Installing Emissions Defeat Devices on Motor VehiclesRead the Press Release
WASHINGTON — North Carolina automotive parts manufacturer and seller, Rudy’s Performance Parts Inc. (Rudy’s), and its owner, Aaron Rudolf, have agreed to pay a total of $10 million in criminal fines and civil penalties for manufacturing, selling and installing devices, commonly known as “defeat devices,” used to remove or disable required emissions controls in motor vehicles.
Rudy’s pleaded guilty and was sentenced today in federal court in Washington, D.C., for conspiring to violate the Clean Air Act. U.S. District Court Judge Trevor N. McFadden for the District of Columbia ordered Rudy’s to pay a criminal fine of $2.4 million and to complete a three-year period of organizational probation, consistent with a plea agreement. Rudolf, sole owner and chief executive officer of Rudy’s, previously pleaded guilty for conspiring to violate the Clean Air Act by tampering with monitoring devices on approximately 300 diesel trucks, which involved the installation of defeat devices on those trucks. He was sentenced in April to three years of probation and ordered to pay a $600,000 criminal fine.
Separate from the criminal actions, the Justice Department, on behalf of the Environmental Protection Agency (EPA), filed a civil suit in 2022 against Rudy’s and Rudolf for violating the Clean Air Act by manufacturing, selling and installing defeat devices and failing to adequately respond to the EPA’s formal requests for information. Under a consent decree filed July 29, Rudy’s and Rudolf will pay a $7 million civil penalty for those violations. The consent decree would also prohibit them from making, selling, offering to sell and installing defeat devices, transferring intellectual property that would allow others to make or sell defeat devices and investing in or profiting from defeat devices manufactured or sold by other businesses. The decree is subject to court approval.
“Defeat devices, such as those sold by Rudy’s, can lead to pollution at high levels that pose health risks and harm the environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This plea agreement and civil settlement show that we will take strong action to enforce the Clean Air Act and emissions controls requirements for motor vehicles.”
“For too many years, companies like Rudy’s have installed illegal defeat devices to evade the public health protections of the Clean Air Act, to the detriment of communities across America,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Today’s announcement demonstrates that EPA will vigorously pursue criminal and civil penalties until this blatant illegal behavior comes to an end.”
“Those selling defeat devices are willing to pollute the environment so that they can personally profit,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “Today’s sentencing makes clear that there will be significant consequences for those who traffic in these devices. Anyone considering peddling or installing these devices is on notice of the substantial costs of doing so.”
“The Clean Air Act’s protections are essential for the health and safety of our communities,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “Tampering with emissions controls adds excess pollutants to the air we breathe and harms both public health and the environment. Settlements like these are essential to hold entities who violate the Clean Air Act accountable and to prevent harmful air pollution.”
According to court documents in the criminal case, Rudy’s sold defeat devices, known as delete tuners, which tampered with the on-board diagnostic systems (OBDs) of vehicles. Rudy’s top selling product was the Mini Maxx delete tuner originally manufactured by another company, identified in court documents as “Company A.” Rudy’s also sold the XRT Pro, another Company A delete tuner. After Company A stopped making these tuners, Rudy’s conspired with others to manufacture imitation Company A tuners. Rudy’s reached an agreement with a software technician to convert certain tuners into imitation Company A tuners. That agreement ran from July 2015 through December 2016, when the software technician stopped converting tuners.
After that, Rudy’s manufactured the imitation delete tuners in-house using a laptop computer that Rudy’s purchased for $850,000. The laptop contained software to convert tuners into imitation Company A tuners. In-house manufacturing lasted from about December 2016 through July 2018. In total, Rudy’s sold approximately 43,900 imitation tuners, generating about $33 million in revenue.
The civil lawsuit alleges that from at least 2014 through mid-2019, Rudy’s and Rudolf manufactured and sold over 250,000 products designed to remove or disable EPA-mandated emissions controls. These products included hardware parts such as plates that block a vehicle’s exhaust gas recirculation system and pipes that replace pollution treatment components in a vehicle’s exhaust system.
Disabling or removing emissions controls and tampering with the OBD of a diesel truck causes its emissions — including nitrogen oxides, carbon monoxide, particulate matter and non-methane hydrocarbons — to increase significantly. Diesel exhaust is a mobile source air toxic because it poses cancer and noncancer health risks. In the civil complaint, the EPA estimates that the number of products sold by Rudy’s amounted to adding over 1 million vehicles’ worth of pollution to America’s roads.
The $7 million that Rudy’s and Rudolf will pay pursuant to the consent decree was based on their financial capability.
The EPA’s Criminal Investigation Division investigated the criminal case.
Senior Counsel Krishna S. Dighe and Trial Attorney Stephen J. Foster of the Environment and Natural Resources Division’s (ENRD) Environmental Crimes Section and Assistant U.S. Attorney Jennifer L. Blackwell for the District of Columbia are prosecuting the criminal case. Senior Counsel Elizabeth L. Loeb of ENRD’s Environmental Enforcement Section, Assistant U.S. Attorneys Cassie Crawford and Rebecca Mayer for the Middle District of North Carolina and Attorney-Adviser Lauren Tozzi of EPA’s Air Enforcement Division are handling the civil case.
The consent decree was lodged in the U.S. District Court for the Middle District of North Carolina. It is subject to a 30-day public comment period and approval by the Court. A copy of the consent decree and information on submitting comments is available on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.
Stopping the manufacture, sale, and installation of illegal delete devices is a priority for the EPA. You can learn more about the EPA’s criminal enforcement actions on defeat devices here and here.
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Seagrove Resident Pleads Guilty to Unlawful Possession of AmmunitionRead the Press Release
GREENSBORO –A Randolph County man pleaded guilty today to unlawful possession of ammunition by a felon, announced Sandra J. Hairston, United States Attorney for the Middle District of North Carolina.
WESLEY MARK HUSSEY, age 45, of Seagrove, North Carolina, pleaded guilty today before Chief United States District Court Judge Catherine C. Eagles. Sentencing is scheduled for December 12, 2024, in Greensboro. HUSSEY faces a maximum sentence of 15 years in prison, as well as a period of supervised release of not more than three years, and monetary penalties.
According to court documents, on March 13, 2024, Randolph County Sheriff’s Office deputies responded to an address in Seagrove after a 911 caller said that WESLEY MARK HUSSEY was sitting on the front porch of the residence wearing an orange ski mask and holding a long gun. The caller stated that HUSSEY had an active protective order prohibiting him from being at the residence. At the scene, deputies observed HUSSEY walk towards the woods with a long gun on his shoulder. They searched the property and conducted a cursory search of the woods but were unable to locate HUSSEY. Eventually, deputies used a drone with thermal imaging and located him under a creek bank sitting in the water. Deputies ordered HUSSEY to surrender for twenty-five minutes. They then told HUSSEY they would be using chemical munitions. HUSSEY said he would come out unarmed. After HUSSEY surrendered, deputies found five 12-gauge shotgun shells and a .32 caliber round of ammunition on his person. Deputies were unable to locate the rifle despite an extensive search.
On November 18, 2016, HUSSEY was convicted in the Superior Court of Randolph County of felony voluntary manslaughter and sentenced to an active term of imprisonment exceeding one year. At the time of the instant offense, his prior convictions had not been expunged or set aside and he had not been pardoned or had his civil rights restored.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Randolph County Sheriff’s Office, and is being prosecuted by Special Assistant United States Attorney Mary Ann Courtney.
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Concord Businessman Pleads Guilty to Tax OffenseRead the Press Release
Greensboro, N.C. – A Concord, North Carolina, man has pleaded guilty to willfully failing to collect or pay over taxes, announced Sandra J. Hairston, United States Attorney for the Middle District of North Carolina (USAO-MDNC).
According to court documents, from on or about the first quarter of 2016 up to and including the third quarter of 2022, RONALD JAMES MCMURPHY of Concord was the president of McMurphy Hydraulics, Inc., which was in the business of repairing and manufacturing hydraulics equipment. From on or about the fourth quarter of 2019 up to and including the third quarter of 2022, MCMURPHY also served as president of Powertek Equipment, Inc., a manufacturer of heavy equipment for construction and forestry businesses. MCMURPHY exercised control over the financial affairs of both companies by, among other acts, serving and executing duties as the president of each corporation; exercising authority to hire and fire employees; and having and exercising signatory authority on checks drawn on the corporate bank accounts. He was thus a person responsible for accounting for and paying to the IRS the employment taxes for the employees of both companies, but for various tax periods, MCMURPHY willfully failed to truthfully account for and pay over the trust fund taxes and employer matching taxes due and owing to the IRS on behalf of the companies’ employees. The total employment tax liability from the first quarter of 2016 through the third quarter of 2022 for which MCMURPHY is accountable is $712,017.00.
MCMURPHY pleaded guilty today before Chief United States District Court Judge Catherine C. Eagles. Sentencing is scheduled for December 12, 2024, in Greensboro. MCMURPHY faces a maximum sentence of five years in prison, as well as a period of supervised release of not more than three years, and monetary penalties.
The case is being investigated by IRS Criminal Investigation. Assistant United States Attorney Laura J. Dildine of the Middle District of North Carolina is prosecuting the case.
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US Attorney’s Offices Present Information Session on the Americans with Disabilities Act’s Protections for Individuals with Opioid Use DisorderRead the Press Release
GREENSBORO – On August 28, 2024, the U.S. Attorney’s Offices in the Western, Eastern, and Middle Districts of North Carolina, in partnership with the Mountain Area Health Education Center (“MAHEC”), presented an information session on the Americans with Disabilities Act’s protections for individuals with opioid use disorder (“OUD”) and combatting discrimination against people in treatment and recovery. This presentation was hosted by the Assistant United States Attorneys and Civil Rights Coordinators from the Civil Division in each district who work to enforce the Americans with Disabilities Act (“ADA”). Participants learned about the ADA’s coverage, the Act’s applicability to individuals with OUD, and the Department of Justice’s work to investigate alleged violations of the ADA and enforce compliance. The presentation was part of an ongoing webinar series hosted by MAHEC; later modules will include additional information about medicinal and operational for treating for OUD in geriatric care, including skilled nursing facilities.
Ensuring that medical and social service providers do not discriminate on the basis of disability, including OUD, is an issue of general public importance. “Individuals who are in recovery and who have stopped illegally using drugs should not face discrimination when accessing evidence-based treatment,” said Sandra J. Hairston, United States Attorney for the Middle District of North Carolina (USAO-MDNC). “The ADA protects individuals who are prescribed medication for OUD under the supervision of a licensed health care provider, and we will continue to work to remove discriminatory barriers to recovery.”
The Department of Justice’s 2022 guidance on how the ADA protects individuals in treatment or recovery, including individuals who take medications to treat OUD, is available at: https://archive.ada.gov/opioid_guidance.pdf. This is the USAO-MDNC’s second presentation on the ADA’s protections for individuals in recovery; in 2022, the office presented to county personnel who operate jails regarding the ADA’s protections, particularly access to medications for OUD.
Individuals who believe they have been victims of discrimination may file an ADA complaint online at https://www.ada.gov/file-a-complaint/. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at 800-514-0301 (voice) or 1-833-610-1264 (TTY).
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Wilmington Resident Sentenced for Possession of Firearms After Threats in Alamance CountyRead the Press Release
GREENSBORO – A North Carolina man was sentenced today to 3-1/2 years in prison, after pleading guilty to one count of felon in possession of a firearm, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
CHRISTOPHER MICHAEL CAULDER, age 30, of Wilmington, North Carolina, was sentenced to a 42-month term of imprisonment by the Honorable Thomas D. Schroeder, United States District Judge in the United States District Court for the MDNC. He pleaded guilty on April 2, 2024, to felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1).
According to court records, on November 7, 2022, Deputies with the Alamance County Sheriff’s Office responded to a 911 call that Christopher Michael CAULDER was making suicidal and homicidal threats. When Deputies responded to the scene and spoke with CAULDER’s mother, they learned that CAULDER had a safe in the basement which contained multiple firearms and a large amount of ammunition, which he brought there from his residence in Wilmington, NC. A search warrant was applied for and granted by a state magistrate. During execution of the search warrant, investigators recovered 23 firearms, several thousand rounds of various calibers of ammunition, hundreds of magazines (some still in boxes with CAULDER’s name on the shipping labels), body armor, firearm accessories, and multiple incomplete firearm receivers (aka ghost guns). Three of the rifles recovered had barrels shorter than 16 inches. One of the rifles appeared to have a hole drilled for the installation of a fully automatic trigger system. While being interviewed, CAULDER made statements indicating he was attempting to make a machine gun.
At the time of these offenses, CAULDER had been previously convicted of Discharging a Weapon into Occupied Property (Alamance County, 2019) and was sentenced to a term of imprisonment exceeding one year. Thus, at the time of the instant offense, CAULDER was legally barred from possessing a firearm due to his status as a felon.
The case was investigated by the Bureau of Alcohol, Firearms, Tobacco, and Explosives and the Alamance County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Tracy M. Williams-Durham.
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Justice Department Sues RealPage for Algorithmic Pricing Scheme that Harms Millions of American RentersRead the Press Release
WASHINGTON – The Justice Department, together with the Attorneys General of North Carolina, California, Colorado, Connecticut, Minnesota, Oregon, Tennessee, and Washington, filed a civil antitrust lawsuit today against RealPage Inc. for its unlawful scheme to decrease competition among landlords in apartment pricing and to monopolize the market for commercial revenue management software that landlords use to price apartments. RealPage’s alleged conduct deprives renters of the benefits of competition on apartment leasing terms and harms millions of Americans. The lawsuit was filed today in the U.S. District Court for the Middle District of North Carolina and alleges that RealPage violated Sections 1 and 2 of the Sherman Act.
The complaint alleges that RealPage contracts with competing landlords who agree to share with RealPage nonpublic, competitively sensitive information about their apartment rental rates and other lease terms to train and run RealPage’s algorithmic pricing software. This software then generates recommendations, including on apartment rental pricing and other terms, for participating landlords based on their and their rivals’ competitively sensitive information. The complaint further alleges that in a free market, these landlords would otherwise be competing independently to attract renters based on pricing, discounts, concessions, lease terms, and other dimensions of apartment leasing. RealPage also uses this scheme and its substantial data trove to maintain a monopoly in the market for commercial revenue management software. The complaint seeks to end RealPage’s illegal conduct and restore competition for the benefit of renters in states across the country.
“Americans should not have to pay more in rent because a company has found a new way to scheme with landlords to break the law,” said Attorney General Merrick B. Garland. “We allege that RealPage’s pricing algorithm enables landlords to share confidential, competitively sensitive information and align their rents. Using software as the sharing mechanism does not immunize this scheme from Sherman Act liability, and the Justice Department will continue to aggressively enforce the antitrust laws and protect the American people from those who violate them.”
“Today’s complaint against RealPage illustrates our corporate enforcement strategy in action. We identify the most serious wrongdoers, whether individuals or companies, and focus our full energy on holding them accountable,” said Deputy Attorney General Lisa Monaco. “By feeding sensitive data into a sophisticated algorithm powered by artificial intelligence, RealPage has found a modern way to violate a century-old law through systematic coordination of rental housing prices — undermining competition and fairness for consumers in the process. Training a machine to break the law is still breaking the law. Today’s action makes clear that we will use all our legal tools to ensure accountability for technology-fueled anticompetitive conduct.”
“RealPage’s egregious, anticompetitive conduct allows landlords to undermine fair pricing and limit housing options while stifling necessary competition,” said Acting Associate Attorney General Benjamin C. Mizer. “The Department remains committed to rooting out illegal schemes and practices aimed at empowering corporate interests at the expense of consumers.”
“As Americans struggle to afford housing, RealPage is making it easier for landlords to coordinate to increase rents,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Today, we filed an antitrust suit against RealPage to make housing more affordable for millions of people across the country. Competition – not RealPage – should determine what Americans pay to rent their homes.”
The complaint cites internal documents and sworn testimony from RealPage and commercial landlords that make plain RealPage’s and landlords’ objective to maximize rental pricing and profitability at the expense of renters. For example:
- RealPage acknowledged that its software is aimed at maximizing prices for landlords, referring to its products as “driving every possible opportunity to increase price,” “avoid[ing] the race to the bottom in down markets,” and “a rising tide raises all ships.”
- A RealPage executive observed that its products help landlords avoid competing on the merits, noting that “there is greater good in everybody succeeding versus essentially trying to compete against one another in a way that actually keeps the entire industry down.”
- A RealPage executive explained to a landlord that using competitor data can help identify situations where the landlord “may have a $50 increase instead of a $10 increase for the day.”
- Another landlord commented about RealPage’s product, “I always liked this product because your algorithm uses proprietary data from other subscribers to suggest rents and term. That’s classic price fixing…”
The complaint alleges that RealPage’s agreements and conduct harm the competitive process in local rental markets for multi-family dwellings across the United States. Armed with competing landlords’ data, RealPage also encourages loyalty to the algorithm’s recommendations through, among other measures, “auto accept” functionality and pricing advisors who monitor landlords’ compliance. As a result, RealPage’s software tends to maximize price increases, minimize price decreases, and maximize landlords’ pricing power. RealPage also trained landlords to limit concessions (e.g., free month(s) of rent) and other discounts to renters. The complaint also cites internal documents from RealPage and landlords touting the fact that landlords have responded by reducing renter concessions.
The complaint separately alleges that RealPage has unlawfully maintained its monopoly over commercial revenue management software for multi-family dwellings in the United States, in which RealPage commands approximately 80% market share. Landlords agree to share their competitively sensitive data with RealPage in return for pricing recommendations and decisions that are the result of combining and analyzing competitors’ sensitive data. This creates a self-reinforcing feedback loop that strengthens RealPage’s grip on the market and makes it harder for honest businesses to compete on the merits.
RealPage Inc., is a property management software company headquartered in Richardson, Texas.
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Lee County Offenders Collect More Than 127 Years in Federal Prison Sentences for Firearms, Drug OffensesRead the Press Release
GREENSBORO, N.C. – Since May 2023, federal judges have sentenced 17 defendants with charges originating in Lee County, North Carolina, to an aggregate total of 1,529 months in federal prison, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
In the most recent case, SAHEEM SHAREEF WILLIAMS, age 37, of Sanford, North Carolina, was sentenced today by United States District Judge Loretta C. Biggs to 120 months’ imprisonment, the maximum sentence allowed by statute. WILLIAMS was also ordered to serve 3 years of supervised release.
According to court records, on April 7, 2022, Lee County Sheriff’s Office deputies responded to WILLIAMS’ residence in Sanford for a domestic violence call. The situation escalated when WILLIAMS barricaded himself inside the home and opened fire on deputies. Deputies briefly exchanged fire with WILLIAMS but never again discharged their weapons. WILLIAMS, however, periodically shot from inside his home towards deputies who had taken cover on the property. One deputy reported hearing a bullet fly by him, while another reported having taken cover behind a pickup truck when a bullet from WILLIAMS’ gun struck it. Deputies repeatedly ordered WILLIAMS to surrender. After 45 minutes, he threw his .22 caliber revolver onto the porch and left the residence with his hands raised. WILLIAMS is a convicted felon and prohibited from possessing firearms. He pleaded guilty on October 16, 2023, to possessing a firearm as a felon.
“The citizens of Sanford and Lee County are safer as a result of these prosecutions,” said U.S. Attorney Hairston. “The cases were investigated and prosecuted as part of the Project Safe Neighborhoods initiative, which allows federal, state, and local law enforcement agencies to focus resources on repeat, violent offenders, many of whom illegally possess firearms. PSN is a proven strategy for reducing violent crime in areas where the strategy is in use.”
On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Today’s sentencing is the most recent in a series of cases resulting from a coordinated effort among federal, state, and local law enforcement intended to reduce violent and gun-related crime in Sanford and Lee County. At least 17 defendants, including WILLIAMS, have been sentenced for firearm or drug offenses in U.S. District Court for the MDNC in the past 15 months. Several other defendants pleaded guilty and are scheduled to be sentenced before the end of the year. The Sanford/Lee County defendants include the following:
SENTENCED
- Diante Teryl Roberson, age 26, of Sanford, NC: Roberson was sentenced on May 9, 2023, to 46 months’ imprisonment and 3 years of supervised release for possessing a firearm as a felon and possessing with intent to distribute fentanyl.
- Jamel Christopher Harris, age 29, of Sanford, NC: Harris was sentenced on May 22, 2023, to 30 days’ imprisonment and 3 years of supervised release for making a false statement on ATF Form 4473 in acquisition of a firearm.
- Steven Trent Goins, age 29, of Sanford, NC: Goins was sentenced on June 14, 2023, to 97 months’ imprisonment and 4 years of supervised release for possessing with intent to distribute methamphetamine.
- Tyquan Bernard Jones, age 25, of Sanford, NC: Jones was sentenced on September 6, 2023, to 21 months’ imprisonment and 3 years of supervised release for conspiring to possess with intent to distribute fentanyl, methamphetamine, heroin, and cocaine hydrochloride.
- Brian Thomas Bright, age 48, of Sanford, NC: Bright was sentenced on September 12, 2023, to 97 months’ imprisonment and 4 years of supervised release for conspiring to possess with intent to distribute fentanyl.
- Larry Brown, age 47, of Sanford, NC: Brown was sentenced on September 12, 2023, to 100 months’ imprisonment and 4 years of supervised release for conspiring to possess with intent to distribute fentanyl.
- Robert Terrell Bush, age 33, of Sanford, NC: Bush was sentenced on September 26, 2023, to 78 months’ imprisonment and 3 years of supervised release for conspiring to possess with intent to distribute fentanyl, methamphetamine, heroin, and cocaine hydrochloride.
- Rosa Raquel Diaz, age 25, of Broadway, NC: Diaz was sentenced on November 17, 2023, to 87 months’ imprisonment and 3 years of supervised release for conspiring to possess with intent to distribute fentanyl, methamphetamine, heroin, and cocaine hydrochloride.
- Chad Marques Jennings, age 41, [no permanent address]: Jennings was sentenced on December 19, 2023, to 120 months’ imprisonment and 3 years of supervised release for possessing a firearm as a felon.
- Christian Berberana Diaz, age 44, [no permanent address]: Diaz was sentenced on March 8, 2024, to 100 months’ imprisonment and 3 years of supervised release for possessing a firearm as a felon.
- Calvin Devonte Bush, age 29, of Winston-Salem, NC: Bush was sentenced on March 12, 2024, to 60 months’ imprisonment and 3 years of supervised release for possessing a firearm as a felon and doing so while under a term of federal supervised release.
- Keyonta Tyreese McDougald, age 28, of Durham, NC: McDougald was sentenced on March 15, 2024, to 80 months’ imprisonment and 3 years of supervised release for conspiring to possess with intent to distribute fentanyl.
- Jeremy Fontaz Moore, age 28, of Fayetteville, NC: Moore was sentenced on June 13, 2024, to 120 months’ imprisonment and 3 years of supervised release for possessing a firearm as a felon and distributing fentanyl.
- Ricky Brown, age 31, of Sanford, NC: Brown was sentenced on July 24, 2024, to 168 months’ imprisonment and 4 years of supervised release for distributing fentanyl.
- Tommy Gene East, Jr., age 52, of Sanford, NC: East was sentenced on August 2, 2024, to 144 months’ imprisonment and 5 years of supervised release for distributing methamphetamine.
- Jonathan Alexander Washington, age 33, of Sanford, NC: Washington was sentenced on August 2, 2024, to 90 months’ imprisonment and 3 years of supervised release for possessing ammunition as a felon.
PENDING SENTENCING
- Dalvin Davis, age 27, of Sanford, NC: Davis is scheduled to be sentenced on August 29, 2024, for possessing with intent to distribute fentanyl.
- Flavio Cesar Sandoval-Romero, age 29, of Mexico: Sandoval-Romero is scheduled to be sentenced on September 17, 2024, for conspiring to possess with intent to distribute cocaine hydrochloride.
- Latavious Kwame McIver, age 35, of Sanford, NC: McIver is scheduled to be sentenced on September 24, 2024, for distributing fentanyl.
The following agencies investigated or assisted with one or more of the above cases: Sanford Police Department, Lee County Sheriff’s Office, Lee County District Attorney’s Office, North Carolina Department of Adult Corrections Special Operations and Intelligence Unit, North Carolina State Highway Patrol, Homeland Security Investigations, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The cases were prosecuted by Assistant United States Attorneys Jacob D. Pryor and Laura J. Dildine of the Middle District of North Carolina.
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Cabarrus County Man Sentenced for Felon in Possession of FirearmRead the Press Release
WINSTON-SALEM – A Midland, North Carolina man was sentenced today for a felony firearm offense, announced Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina (MDNC).
RONALD CHRISTOPHER BETHEA, JR., 34, was sentenced to a 92-month term of imprisonment by the Honorable Thomas D. Schroeder, United States District Judge in the United States District Court for the MDNC, to be followed by a 3-year term of supervised release. He pleaded guilty on April 2, 2024, to possession of a firearm by a convicted felon, a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8).
According to court documents, on April 4, 2023, a Cabarrus County Deputy Sheriff conducted a traffic stop of a vehicle after the driver, BETHEA, committed a traffic infraction. The Deputy smelled marijuana upon approaching the vehicle and speaking with the driver. BETHEA admitted he had 3.5 grams of “weed” in the car and advised that he had recently gotten out of prison in South Carolina. BETHEA also admitted he had a gun, and the Deputy recovered a loaded 9mm pistol from BETHEA’s right front pants pocket. During a search of BETHEA’s vehicle, deputies found small quantities of marijuana, cocaine, and psilocybin mushrooms.
BETHEA had been previously convicted of the felony offense of Attempted Murder in the Court of General Session for the State of South Carolina, Marlboro County, and was sentenced to 12 years of imprisonment. His conviction had not been set aside or expunged, and he had not been pardoned or had his civil rights restored, and he was therefore prohibited from possessing a firearm.
Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Cabarrus County Sheriff’s Office investigated the case. The case is being prosecuted by Assistant U.S. Attorney Craig M. Principe.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Justice Department Secures Agreement with North Carolina Department of Adult Correction to Expand Religious Opportunities in State PrisonsRead the Press Release
The Justice Department announced today that it has secured an agreement with the North Carolina Department of Adult Correction (NCDAC) expanding opportunities for group religious practice throughout the state prison system and allowing access to kosher-for-Passover meals and Seders. The agreement resolves the Justice Department’s investigation of NCDAC pursuant to the Religious Land Use and Institutionalized Persons Act (RLUIPA).
“The Constitution and federal law guarantee all Americans the freedom to practice their religion, including people who are incarcerated in jails and prisons,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement will protect the religious practices of incarcerated people across North Carolina by allowing members of minority faiths to gather, worship and study. Whether at home with their families, in houses of worship, or behind bars, every person should be able to celebrate religious holidays and gather with their communities of faith.”
“Federal law guarantees all Americans the right to freely exercise their religion, and institutionalized persons have the right to practice their faith and worship together,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “We are committed to protecting this fundamental right and are grateful to the North Carolina Department of Adult Correction for its willingness to work with us and revise its policies to protect the religious rights of individuals in its custody.”
“The settlement agreement reaffirms that all individuals in custody retain the right to practice their religion fully and openly during their incarceration,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “It is our duty to ensure that incarcerated persons are afforded the same religious rights, freedoms and protections as any other citizen. My office is committed to enforcing these rights and ensuring that they are upheld within all correctional facilities in North Carolina.”
“Our Constitution protects the religious liberty of all people to exercise their faith,” said U.S. Attorney Michael Easley for the Eastern District of North Carolina. “In America, that means even those who are incarcerated can continue to worship and pray. NCDAC’s new policies ensure that believers can maintain their faith and religious practices, even after they enter the jailhouse door.”
Under the agreement, NCDAC has adopted a policy that reduces the minimum number of people for group worship to two and no longer requires the presence of a faith helper for religious gathering. Under the prior policy, NCDAC had minimum participant and faith helper requirements for congregate religious practices by “minority faith groups” that often prevented these groups from gathering for worship, celebration and study. Minority faith groups were defined as non-Christian faiths, including adherents of Islam or Judaism.
In addition, when the department began the investigation, NCDAC did not provide certified kosher-for-Passover food to incarcerated people who wished to observe the Passover holiday. The agreement requires that NCDAC provide certified kosher-for-Passover meals every year for the eight days of Passover. In addition, NCDAC will provide the opportunity for people who observe Passover to participate in two Seder ritual observances, which will include a Seder plate of ceremonial foods.
For additional information about the Civil Rights Division and the Special Litigation Section please visit www.justice.gov/crt/special-litigation-section. The Justice Department issued a report on the 20th Anniversary of RLUIPA in 2020 and a statement and on the Institutionalized Persons Provisions of RLUIPA in 2017. Those interested in finding out more about RLUIPA can visit www.justice.gov/crt/religious-land-use-and-institutionalized-persons-act-0.
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Duo plead guilty to armed robberies in Forsyth and Randolph CountiesRead the Press Release
GREENSBORO – Two Anson County residents pleaded guilty to Hobbs Act robberies and firearms charges, announced Sandra J. Hairston, United States Attorney for the Middle District of North Carolina.
BRANDON DRELLE WALL, age 35, of Wadesboro, North Carolina, and WILLIAM CHAVIS DUNLAP, JR., age 29, of Morven, North Carolina, pleaded guilty to robbing a sweepstakes business in Winston-Salem in June 2022, and another in Liberty in August 2022. The defendants also pleaded guilty to one count each of brandishing a firearm in connection with the robbery in Liberty.
According to court documents, WALL and DUNLAP wore masks and threatened employees with guns in an effort to gain access to business safes. During the robbery in Liberty, the defendants also forced patrons to the floor at gunpoint. WALL and DUNLAP took a phone, wallet, $1400, and two guns in the Winston-Salem robbery. A total of $8,650 was stolen during the Liberty robbery. After his arrest, WALL admitted he also robbed a gas station in Richmond County, and DUNLAP admitted to robbing a discount store in Anson County.
DUNLAP pleaded guilty yesterday and his sentencing is scheduled to take place on October 31, 2024, at 9:30 a.m. WALL pleaded today and his sentencing is scheduled to take place on October 31, 2024, at 10:30 a.m. Both sentencing hearings will be held in Greensboro, North Carolina, before United States District Judge William L. Osteen, Jr.
At sentencing, each of the defendants faces a sentence of not less than seven years to life in prison, a period of supervised release of up to five years, fines, and other monetary penalties. In addition, WALL and DUNLAP agreed to forfeit their interests in seven firearms plus multiple magazines and rounds of ammunition.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case is being investigated by the Liberty Police Department, Winston Salem Police Department, Anson County Sheriff's Office, Richmond County Sheriff's Office, Wadesboro Police Department, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Special Assistant United States Attorney Mary Ann Courtney.
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Illegal firearms trafficker sentenced to over 10 years in prisonRead the Press Release
GREENSBORO – A Guilford County man was sentenced today for the illegal possession and trafficking of firearms after a months-long investigation into the sale of 20 firearms in Greensboro, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
MARCUS DEVON DALTON, age 30, was sentenced today after pleading guilty to illegal possession and trafficking firearms in May 2024. According to court records, in April 2022, a confidential informant (CI) contacted an agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) regarding an illegal firearms dealer who was supplying both firearms and machinegun conversion devices in Greensboro. The ATF agent coordinated multiple controlled purchases with the CI wherein DALTON illegally sold 20 firearms, including AR-15s, from May 2022 to September 2023. At the time of these events, DALTON was also a previously convicted felon and was therefore barred from possessing firearms.
DALTON was sentenced to a 121-month term of imprisonment by the Honorable William L. Osteen, United States District Judge in the United States District Court for the Middle District of North Carolina. At the conclusion of his active term of imprisonment, DALTON will be subject to supervised release for 3 years.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greensboro Police Department. The case was prosecuted by Assistant United States Attorney Nicole DuPré.
This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
A copy of this press release will be posted on our website. Related court documents and information can be found on the website of the U.S. District Court for the Middle District of North Carolina or on PACER by searching for case number 1:24CR81-1.
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FBI and U.S. Attorneys in North Carolina Warn of New Jury ScamRead the Press Release
The FBI Charlotte Field Office and the U.S. Attorney’s Offices for the Eastern, Middle, and Western Districts of North Carolina are warning the public about a new, more sophisticated jury scam involving fake federal arrest warrants.
The scammers call victims or send emails claiming the victims failed to report for jury duty and there is a federal warrant for their arrest. To add additional credibility to their claims, the scammers either text or email a fake arrest warrant with the names of actual North Carolina federal law enforcement officers and prosecutors. The victims are told they can avoid jail time by paying a fine via a virtual currency machine or kiosk.
Additionally, they may manipulate caller ID information to make it appear as though the call is originating from a legitimate source, such as the courthouse or a government agency. They may discourage victims from paying the fine in person, claiming the office is closed due to COVID. Legitimate arrest warrants are not emailed or texted, they are served in person by a law enforcement officer or court official and never include a demand for payment.
Individuals need to exercise caution and skepticism when receiving unsolicited phone calls, especially ones asking for personal information or payment. The FBI recommends to never provide personal or financial information to unknown callers.
To avoid falling victim to common scams:
- Be wary of unsolicited phone calls, emails, or texts.
- Do not give money or personal information to anyone you don’t know.
- Trust your instincts and hang up on any caller who makes you feel pressured or uncomfortable.
- Verify the authenticity of legal claims against you with the appropriate law enforcement agency or court officials.
If you believe you have been a victim of a jury duty scam or other fraudulent scheme, file a report with the FBI's Internet Crime Complaint Center at www.ic3.gov.
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Man Convicted of Violent Home Invasion Robberies to Steal CryptocurrencyRead the Press Release
WASHINGTON – A federal jury in Greensboro, North Carolina, convicted a Florida man today for his lead role in an international conspiracy to break into U.S. citizens’ homes, violently kidnap and assault them, and steal their Bitcoin and other cryptocurrency.
According to court documents and evidence presented at trial, Remy St Felix, 24, of West Palm Beach, was a leader of a robbery crew that targeted cryptocurrency owners through violent home invasions. Between September 2022 and July 2023, St Felix helped to plan and orchestrate a series of robberies in Durham, North Carolina; Florida; Texas; and New York. Victims from St Felix’s home invasions were kidnapped in their own homes and told to access and drain their cryptocurrency accounts.
“St Felix and his co-conspirators targeted victims across the United States for brutal home invasions, kidnappings, and robberies in order to steal cryptocurrency,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Although the members of this violent conspiracy tried to cover their tracks through encrypted communication and anonymous financial transactions, they were not beyond the reach of our dedicated investigators and prosecutors. The jury’s verdict today—the latest in more than a dozen convictions in this case—should serve as yet another reminder that the Criminal Division and its partners are committed to bringing violent offenders to justice, no matter how technically sophisticated their crimes may be.”
“The victims in this case suffered a horrible, painful experience that no citizen should have to endure,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “The defendant and his co-conspirators acted purely out of greed and callously terrorized those they targeted. The jury’s verdict in this case represents a vital step in securing justice for these victims.”
According to trial evidence, in April 2023, St Felix and a co-conspirator forced their way into a victim’s home. There, St Felix and his co-conspirator assaulted, zip-tied, and held the victim at gunpoint, and threatened more violence against the victim and the victim’s spouse, while other co-conspirators transferred more than $150,000 in cryptocurrency from the victim’s account.
Evidence introduced at trial revealed that St Felix and his co-conspirators gained unauthorized access to their targets’ email accounts and conducted physical surveillance prior to attempting the home invasion robberies. They laundered the funds they stole through anonymity-enhanced cryptocurrencies such as Monero, as well as “instant exchanges” and decentralized finance platforms that did not conduct know-your-customer checks. St Felix and his co-conspirators in the United States and abroad used encrypted messaging applications to communicate about their targets and their money laundering efforts.
“Engaging in violence in the furtherance of stealing cryptocurrency, as Remy St Felix did, will not be tolerated by the FBI and its partners,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response, and Services Branch. “We are proud of the work that led to today’s conviction, which should act as a warning to others looking to participate in similar activity that we will not stop until you face the consequences of your actions.”
“The crimes committed by this ring of violent cryptocurrency thieves are shocking. They held victims hostage in their own homes and stole hundreds of millions of dollars from their crypto accounts,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “This investigation is an outstanding example of what a local FBI field office can accomplish. We hope the tireless work of our criminal and cyber squads can provide some sense of justice to the victims terrorized by this group.”
St Felix was arrested by the FBI in July 2023 on his way to commit a home invasion in New York. Thirteen of St Felix’s co-conspirators, including members of his home invasion robbery crew, also were arrested and later pleaded guilty to their roles in the scheme.
The jury convicted St Felix of nine counts relating to conspiracy, kidnapping, Hobbs Act robbery, wire fraud, and brandishing a firearm in furtherance of crimes of violence. He is scheduled to be sentenced on Sept. 11 and faces a mandatory minimum of seven years in prison and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Sandra J. Hairston of the Middle District of North Carolina; and Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office made the announcement.
The FBI Charlotte Field Office investigated the case, with valuable assistance from the Durham Police Department and the FBI New York, Miami, Houston, Mobile, and Newark Field Offices. The National Cryptocurrency Enforcement Team (NCET) of the Criminal Division’s Computer Crime and Intellectual Property Section is partnered with the U.S. Attorney’s Office for the Middle District of North Carolina in prosecuting the case. CCIPS/NCET Trial Attorney and Assistant U.S. Attorney Eric Iverson for the Middle District of North Carolina and CCIPS Trial Attorney Brian Mund are prosecuting the case.
The U.S. Attorneys’ Offices for the Southern District of Florida, Southern District of Texas, and Eastern District of Texas provided valuable assistance.
NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within CCIPS, NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, obfuscation services, and infrastructure providers. NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
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Man Convicted of Violent Home Invasion Robberies to Steal CryptocurrencyRead the Press Release
A federal jury in Greensboro, North Carolina, convicted a Florida man today for his lead role in an international conspiracy to break into U.S. citizens’ homes, violently kidnap and assault them, and steal their Bitcoin and other cryptocurrency.
According to court documents and evidence presented at trial, Remy St Felix, 24, of West Palm Beach, was a leader of a robbery crew that targeted cryptocurrency owners through violent home invasions. Between September 2022 and July 2023, St Felix helped to plan and orchestrate a series of robberies in Durham, North Carolina; Florida; Texas; and New York. Victims from St Felix’s home invasions were kidnapped in their own homes and told to access and drain their cryptocurrency accounts.
“St Felix and his co-conspirators targeted victims across the United States for brutal home invasions, kidnappings, and robberies in order to steal cryptocurrency,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Although the members of this violent conspiracy tried to cover their tracks through encrypted communication and anonymous financial transactions, they were not beyond the reach of our dedicated investigators and prosecutors. The jury’s verdict today—the latest in more than a dozen convictions in this case—should serve as yet another reminder that the Criminal Division and its partners are committed to bringing violent offenders to justice, no matter how technically sophisticated their crimes may be.”
“The victims in this case suffered a horrible, painful experience that no citizen should have to endure,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “The defendant and his co-conspirators acted purely out of greed and callously terrorized those they targeted. The jury’s verdict in this case represents a vital step in securing justice for these victims.”
According to trial evidence, in April 2023, St Felix and a co-conspirator forced their way into a victim’s home. There, St Felix and his co-conspirator assaulted, zip-tied, and held the victim at gunpoint, and threatened more violence against the victim and the victim’s spouse, while other co-conspirators transferred more than $150,000 in cryptocurrency from the victim’s account.
Evidence introduced at trial revealed that St Felix and his co-conspirators gained unauthorized access to their targets’ email accounts and conducted physical surveillance prior to attempting the home invasion robberies. They laundered the funds they stole through anonymity-enhanced cryptocurrencies such as Monero, as well as “instant exchanges” and decentralized finance platforms that did not conduct know-your-customer checks. St Felix and his co-conspirators in the United States and abroad used encrypted messaging applications to communicate about their targets and their money laundering efforts.
“Engaging in violence in the furtherance of stealing cryptocurrency, as Remy St Felix did, will not be tolerated by the FBI and its partners,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response, and Services Branch. “We are proud of the work that led to today’s conviction, which should act as a warning to others looking to participate in similar activity that we will not stop until you face the consequences of your actions.”
“The crimes committed by this ring of violent cryptocurrency thieves are shocking. They held victims hostage in their own homes and stole hundreds of thousands of dollars from their crypto accounts,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “This investigation is an outstanding example of what a local FBI field office can accomplish. We hope the tireless work of our criminal and cyber squads can provide some sense of justice to the victims terrorized by this group.”
St Felix was arrested by the FBI in July 2023 on his way to commit a home invasion in New York. Thirteen of St Felix’s co-conspirators, including members of his home invasion robbery crew, also were arrested and later pleaded guilty to their roles in the scheme.
The jury convicted St Felix of nine counts relating to conspiracy, kidnapping, Hobbs Act robbery, wire fraud, and brandishing a firearm in furtherance of crimes of violence. He is scheduled to be sentenced on Sept. 11 and faces a mandatory minimum of seven years in prison and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Sandra J. Hairston of the Middle District of North Carolina; and Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office made the announcement.
The FBI Charlotte Field Office investigated the case, with valuable assistance from the Durham Police Department and the FBI New York, Miami, Houston, Mobile, and Newark Field Offices. The National Cryptocurrency Enforcement Team (NCET) of the Criminal Division’s Computer Crime and Intellectual Property Section is partnered with the U.S. Attorney’s Office for the Middle District of North Carolina in prosecuting the case. CCIPS/NCET Trial Attorney and Assistant U.S. Attorney Eric Iverson for the Middle District of North Carolina and CCIPS Trial Attorney Brian Mund are prosecuting the case.
The U.S. Attorneys’ Offices for the Southern District of Florida, Southern District of Texas, and Eastern District of Texas provided valuable assistance.
NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within CCIPS, NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, obfuscation services, and infrastructure providers. NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets.
Asheboro man arrested after high-speed chase through Randolph and Chatham CountiesRead the Press Release
GREENSBORO – A North Carolina man who led deputies on a 75-mile high-speed chase in September was sentenced today to 151 months in prison, after pleading guilty to one count of possession with intent to distribute methamphetamine, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
According to court records, a deputy with the Randolph County Sheriff’s Office was patrolling an area near Highway 220 in Randolph County on September 3, 2023, when he encountered an individual on a motorcycle approach, turn off his headlights, and accelerate quickly away. The deputy then pursued the individual, ADAM MICHAEL CLODFELTER, age 24, of Asheboro, for over 75 miles. CLODFELTER had no license plate and was recklessly switching lanes while reaching speeds of over 150 miles per hour. CLODFELTER was arrested after losing control of the vehicle and found to be in possession of a firearm, methamphetamine, a lock pick, and drug paraphernalia. At the time of the incident, CLODFELTER has previously been convicted of a crime with a term of imprisonment exceeding one year, rendering him ineligible to possess a firearm.
CLODFELTER was sentenced to a 151-month term of imprisonment by the Honorable William L. Osteen, Jr., United States District Judge in the United States District Court for the MDNC, to be followed by a 3-year term of supervised release. He pleaded guilty on January 3, 2024, to possession with intent to distribute methamphetamine, a violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C).
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Randolph County Sheriff’s Office, and the Asheboro Police Department. The case was prosecuted by Special Assistant United States Attorney Mary Ann Courtney.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Court Orders Durham Practitioner to Pay $500,000 for Writing Unauthorized Prescriptions for Controlled SubstancesRead the Press Release
GREENSBORO - United States Attorney for the Middle District of North Carolina Sandra J. Hairston announced today that a federal court entered a consent judgment ordering Sharon Raynes Halliday (Halliday) and her practice, RAPHA Healthcare Services, LLC (RAPHA), located in Durham, to pay $500,000 in civil penalties to resolve allegations that she violated the Controlled Substances Act and the False Claims Act by writing invalid prescriptions and by causing Medicare and North Carolina Medicaid to pay for those prescriptions.
The consent judgment resolves a complaint filed by the United States and the State of North Carolina on July 17, 2022, alleging that Halliday wrote prescriptions for controlled substances without authorization, and, through RAPHA, caused Medicare and Medicaid to pay for these unauthorized and invalid prescriptions. The complaint alleges that Halliday obtained a medical school faculty license, also known as a faculty limited license, under false pretenses from Duke University Medical School. A faculty limited license is intended to allow medical schools in North Carolina to benefit from expertise or specialized skills of physicians who are not otherwise eligible for full licensure in North Carolina. The faculty limited license only allows physicians holding such license to practice to the extent authorized by its sponsoring university. According to the complaint, Duke University never authorized Halliday to write prescriptions, nor was Halliday authorized to open RAPHA, which had multiple locations.
Halliday and her practice, RAPHA, agreed to pay the $500,000 civil penalty and be bound by the terms of the consent judgment.
“It is essential to the health and safety of all citizens that medical practitioners only write prescriptions for controlled substances when authorized and legitimate,” said U.S. Attorney Hairston. “The laws surrounding prescriptions exist to ensure the legitimacy and safety of every controlled substance prescription, and our office will continue to hold responsible those violating these laws.”
The resolutions obtained in this matter were the result of a coordinated effort among the U.S. Attorney’s Office for the Middle District of North Carolina, the U.S. Drug Enforcement Administration, and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. The United States was represented by Assistant U.S. Attorney Rebecca Mayer.
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U.S. Attorney Sandra J. Hairston Recognizes National Police WeekRead the Press Release
GREENSBORO - In honor of National Police Week, U.S. Attorney Sandra J. Hairston will recognize the service and sacrifice of federal, state, local, and Tribal law enforcement. The week will be observed Saturday, May 11 through Friday, May 17, 2024.
“As our country recognizes National Police Week, the Justice Department joins families and communities in remembering the members of the law enforcement community who made the ultimate sacrifice protecting the public,” said Attorney General Merrick Garland. “Policing is difficult and dangerous, yet time and time again, law enforcement officers answer the call, showing up for their communities when they are needed the most. Their devotion to duty is matched only by that of their loved ones who make daily sacrifices to support them. The Justice Department is committed to doing everything in our power to help provide our law enforcement partners with the resources they need to carry out their noble work on behalf of the public.”
“During National Police Week, we pay tribute to and honor our courageous law enforcement officers who have made the ultimate sacrifice in the line of duty,” said U.S. Attorney Hairston. “To our federal, state, and local officers who, each day, bravely serve our communities and keep us safe, we sincerely thank you for your service. To the families of our fallen officers, and to the families of the officers who leave home each day to carry out the mission, you have our heartfelt gratitude and support.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe.
On Monday, May 13, the names of more than 280 officers killed in the line of duty in 2024 who have been added to the wall at the National Law Enforcement Officers Memorial were read during a Candlelight Vigil. To view a recording of the livestream of this event, visit https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
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Maryland Man Pleads Guilty to $3.6M Covid-19 Relief FraudRead the Press Release
GREENSBORO, NC – BENNETT ABABIO of Maryland pled guilty today to one-count of conspiracy to commit offenses against the United States related to a scheme to file fraudulent loan applications seeking approximately $3.6 million in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, between May 2020 and December 2021, ABABIO conspired to submit fraudulent Paycheck Protection Program loan and forgiveness applications for himself and others, including an individual located in Greensboro, North Carolina. ABABIO owned, or partially owned, five companies for which ABABIO submitted fraudulent PPP applications. In total, ABABIO received $2,581,833 in PPP loans for his companies. The PPP applications contained false statements about the payroll expenses of each company, which the SBA used to calculate the amount of PPP funds to which the applicant-companies would be entitled. Separately, ABABIO helped others prepare fraudulent PPP applications, resulting in over $1 million in additional PPP loans being disbursed to ABABIO’s clients.
Sentencing is scheduled to take place on Tuesday, September 10, 2024, at 10:30 a.m. in Greensboro, North Carolina, courtroom number one, before United States District Judge William L. Osteen, Jr. At sentencing, ABABIO faces a maximum sentence of five in prison, a period of supervised release of up to three years, and monetary penalties.
The Internal Revenue Service – Criminal Investigation is investigating the case, and it is being prosecuted by Assistant U.S. Attorney Ashley Waid.
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Defendant Sentenced for Impersonating a Federal AgentRead the Press Release
GREENSBORO – A Greensboro man convicted of posing as a federal law enforcement agent has been sentenced, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
KHRIY SHERROD SIMON, age 33, was sentenced today to 33 months in prison. SIMON was found guilty at trial on January 24, 2024, of impersonating a special agent of the Drug Enforcement Administration (DEA).
Evidence presented at trial showed that on March 29, 2023, in a parking lot on Bridford Parkway in Greensboro, SIMON parked behind and blocked a car occupied by the driver and a passenger. Wearing a black tactical vest and a black balaclava, and armed with a weapon, SIMON aggressively approached the driver’s side of the car. He yelled at the occupants, demanding that they put their hands where he could see them, ordering them not to move, and announcing himself as the DEA. SIMON told the women that they resembled two people suspected of murder and drug crimes. He ordered them out of the car, claiming he needed to search it for evidence of those crimes. Even after he searched the car, he continued to detain the women and only released them after conferring with the driver of another car, an associate of SIMON’s, who arrived on scene. Throughout the ordeal, SIMON repeated to the women that he was with the DEA. SIMON is not and has never been a special agent of the DEA or a member of any federal or state law enforcement agency.
“By impersonating a law enforcement officer, the defendant endangered the lives of both victims and other citizens in the surrounding area,” said United States Attorney Sandra J. Hairston. “The investigation and prosecution of this case, and the sentence imposed today, send a clear message that such reprehensible conduct will not be tolerated.”
SIMON was sentenced by the Honorable William L. Osteen, United States District Judge in the United States District Court for the Middle District of North Carolina. At the conclusion of his active term of imprisonment, SIMON will be subject to supervised release for one year.
The case was investigated by the Federal Bureau of Investigation and the Greensboro Police Department. The case was prosecuted by Assistant United States Attorneys Laura Jeanne Dildine and Nicole R. DuPré.
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Settlement Reached with Nail Salon for Violations of the Americans with Disabilities ActRead the Press Release
GREENSBORO - The U.S. Attorney’s Office has reached a settlement with a Raeford, North Carolina nail salon to resolve allegations that the salon violated the Americans with Disabilities Act of 1990 (“ADA”) by refusing to provide pedicure services to a customer unless she transferred from her wheelchair to a pedicure chair, announced U.S. Attorney Sandra J. Hairston.
Pursuant to the settlement, Modern Nails agreed to adopt and conspicuously post a non-discrimination policy, to ensure that its staff understand the policy, and to pay $500 to the complainant in this case.
The Department of Justice’s enforcement efforts under the ADA seek equal opportunity and dignity in all aspects of life, including access to public accommodations such as nail salons. This settlement agreement is the eighth agreement that the Department of Justice has reached with a nail salon through its U.S. Attorney Program for ADA Enforcement, and the second in the Middle District of North Carolina.
- In June 2021, the U.S. Attorney’s Office for the Middle District of North Carolina entered a settlement agreement resolving an allegation that a nail salon in Durham, North Carolina, refused to provide services to an individual with HIV.
- In June 2022, the U.S. Attorney’s Office for the Eastern District of Louisiana reached a settlement agreement with a nail salon in Harahan, Louisiana, to resolve an allegation that an individual was refused services because of the inability to transfer out of their wheelchair.
- In February 2023, the U.S. Attorney’s Office for the District of New Jersey entered a settlement agreement with a nail salon in Ocean County, New Jersey, to resolve allegations that the salon discriminates against individuals with mobility impairments.
- In June 2023, the U.S. Attorney's Office for the District of Arizona reached a settlement agreement with a nail salon in San Tan Valley, Arizona, to resolve allegations that the nail salon discriminated against a customer with paraplegia because she uses a wheelchair and does not have complete hand function.
- In October 2023, the U.S. Attorney's Office for the District of Kansas entered a settlement agreement with a nail salon in Kansas City, Kansas, to resolve allegations that the salon refused nail services to a woman with cerebral palsy who used a motorized wheelchair.
- In February 2024, the U.S. Attorney’s Office for the Western District of New York reached a settlement agreement with a nail salon in Williamsville, New York, to resolve allegations that the salon refused to allow a customer with a service animal enter the salon.
- In March 2024, the U.S. Attorney’s Office for the District of Arizona reached a settlement agreement with a nail salon in Chandler, Arizona to resolve allegations that the salon refused equal services to those using a wheelchair.
Additional information about the ADA, including information on how to file a complaint, can be found at www.ada.gov.
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