Middle District of North Carolina
Press releases recorded for this federal judicial district.
North Carolina Man Sentenced for Racially Motivated Hate Crimes Against Black and Hispanic MenRead the Press Release
WASHINGTON – A North Carolina man was sentenced yesterday to 41 months in prison and three years of supervised release for committing hate crimes against a Black man and a Hispanic man.
Evidence at trial proved that Marian Hudak, 52, willfully intimidated the victims and interfered with their enjoyment of federally protected activities using force or a threat of force because of their race and color.
“Racially-motivated acts of violence are abhorrent and unlawful, and have no place in our society today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant, who harbored the KKK flag and Nazi paraphernalia, carried out hate-fueled attacks on a Black man who was merely driving on a public street and a Hispanic man who simply was trying to live in his own home. The severe sentence imposed for these vicious hate crimes should send a strong message that perpetrators of hate-fueled violence will be held accountable. The Justice Department is steadfast in its commitment to investigating and prosecuting hate crimes wherever they occur in our country.”
“All people — regardless of the color of their skin or their nationality — are entitled to travel on public roads and enjoy their homes without fear of being threatened, harassed or intimidated,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “The sentence imposed yesterday sends a strong message that this type of violent, hateful conduct will be investigated and prosecuted to the fullest extent of the law.”
“For years Marian Hudak terrorized people of color living in one North Carolina city,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “They were afraid to drive down certain streets, fill their cars with gas, or even to take their children to the bus stop because of his intolerance for people who didn't look like him. There is no place for racial hatred-fueled violence in this country.”
Evidence at trial also proved that on Oct. 13, 2022, Hudak encountered J.S., a Black man he had never met before, while they were driving on a public road in Concord, North Carolina. Hudak shouted racial slurs at J.S., told him to “come here, boy,” then got out of his car, punched J.S.’ window multiple times, then chased J.S. home where he continued to shout racial slurs and threatened J.S. Additional trial witnesses testified about other times Hudak shouted slurs at, gave the middle finger to and drove aggressively near other minority motorists. They also testified about a KKK flag, a racist publication and Nazi memorabilia Hudak kept in his residence.
Evidence at trial also proved that on Nov. 27, 2021, Hudak shouted racially charged insults at his next-door neighbor, J.D., a Hispanic man who was enjoying his right to occupy a dwelling. Hudak then attacked J.D. by punching and tackling him, causing J.D. to suffer bodily injury. Other trial witnesses testified about Hudak’s history of social media posts disparaging Hispanic people generally and J.D.’s family specifically and other instances where Hudak intimidated Hispanic people, including by parking his truck outside of a Hispanic church during worship services and by using derogatory language.
The FBI Charlotte Field Office investigated the case.
Assistant U.S. Attorneys Ashley Waid and JoAnna McFadden for the Middle District of North Carolina and Trial Attorney Daniel Grunert of the Civil Rights Division’s Criminal Section prosecuted the case.
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North Carolina Man Sentenced for Racially Motivated Hate Crimes Against Black and Hispanic MenRead the Press Release
A North Carolina man was sentenced yesterday to 41 months in prison and three years of supervised release for committing hate crimes against a Black man and a Hispanic man.
Evidence at trial proved that Marian Hudak, 52, willfully intimidated the victims and interfered with their enjoyment of federally protected activities using force or a threat of force because of their race and color.
“Racially-motivated acts of violence are abhorrent and unlawful, and have no place in our society today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant, who harbored the KKK flag and Nazi paraphernalia, carried out hate-fueled attacks on a Black man who was merely driving on a public street and a Hispanic man who simply was trying to live in his own home. The severe sentence imposed for these vicious hate crimes should send a strong message that perpetrators of hate-fueled violence will be held accountable. The Justice Department is steadfast in its commitment to investigating and prosecuting hate crimes wherever they occur in our country.”
“All people — regardless of the color of their skin or their nationality — are entitled to travel on public roads and enjoy their homes without fear of being threatened, harassed or intimidated,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “The sentence imposed yesterday sends a strong message that this type of violent, hateful conduct will be investigated and prosecuted to the fullest extent of the law.”
“For years Marian Hudak terrorized people of color living in one North Carolina city,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “They were afraid to drive down certain streets, fill their cars with gas, or even to take their children to the bus stop because of his intolerance for people who didn't look like him. There is no place for racial hatred-fueled violence in this country.”
Evidence at trial also proved that on Oct. 13, 2022, Hudak encountered J.S., a Black man he had never met before, while they were driving on a public road in Concord, North Carolina. Hudak shouted racial slurs at J.S., told him to “come here, boy,” then got out of his car, punched J.S.’ window multiple times, then chased J.S. home where he continued to shout racial slurs and threatened J.S. Additional trial witnesses testified about other times Hudak shouted slurs at, gave the middle finger to and drove aggressively near other minority motorists. They also testified about a KKK flag, a racist publication and Nazi memorabilia Hudak kept in his residence.
Evidence at trial also proved that on Nov. 27, 2021, Hudak shouted racially charged insults at his next-door neighbor, J.D., a Hispanic man who was enjoying his right to occupy a dwelling. Hudak then attacked J.D. by punching and tackling him, causing J.D. to suffer bodily injury. Other trial witnesses testified about Hudak’s history of social media posts disparaging Hispanic people generally and J.D.’s family specifically and other instances where Hudak intimidated Hispanic people, including by parking his truck outside of a Hispanic church during worship services and by using derogatory language.
The FBI Charlotte Field Office investigated the case.
Assistant U.S. Attorneys Ashley Waid and JoAnna McFadden for the Middle District of North Carolina and Trial Attorney Daniel Grunert of the Civil Rights Division’s Criminal Section prosecuted the case.
North Carolina Man Charged with Mailing Antisemitic Threat Targeting Middle Georgia RabbiRead the Press Release
MACON, Ga. – A North Carolina man is in custody and federally charged with allegedly mailing an antisemitic threat to a Middle Georgia Rabbi.
Ariel E. Collazo Ramos, 31, of High Point, North Carolina, is charged with one count of mailing threatening communications. The indictment was returned by a federal grand jury on April 9 and was unsealed on May 2. Collazo Ramos was taken into custody at his High Point residence today; his initial appearance will occur in the Middle District of North Carolina at a time determined by the Court.
According to the indictment, Rabbi Elizabeth Bahar of Temple Beth Israel in Macon received a threatening postcard at her home via the U.S. Postal Service on Feb. 1, 2024, allegedly from Collazo Ramos. On one side of the postcard, there was a handwritten message: "Is there a child rape, torture, and murder tunnel under your house? We have the Zyklon B. Use Code "GASTHEJEWS" for 10% off!" The reverse side of the postcard displayed a hand-drawn image depicting a purported Jewish male wearing a rat costume and the words “JEWS ARE RATS.”
If convicted, Collazo Ramos faces a maximum sentence of five years in prison and a $250,000 fine.
The case is being investigated by FBI.
Deputy Criminal Chief Will Keyes is prosecuting the case for the Government with assistance from Trial Attorney Erin Monju of the Civil Rights Division’s Criminal Section.
An indictment is only an allegation of criminal conduct, and all defendants are presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
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Montgomery County Resident Sentenced for Transmitting Threats to North Carolina Jewish OrganizationRead the Press Release
GREENSBORO – A North Carolina man was sentenced today to 18 months in prison, after pleading guilty to one count of communicating threats in interstate commerce, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
JEFFREY SCOTT HOBGOOD, age 64, of Troy, North Carolina, was sentenced to an 18-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 and 20 hours of community service weekly for twelve weeks. He pleaded guilty on January 3, 2024, to communicating threats in interstate commerce, a violation of Title 18, United States Code, Section 875(c).
According to court records, on October 11, 2023, HOBGOOD sent a threatening email to a Jewish organization located in Charlotte, North Carolina, addressing the recipients as “Israeli jews of David star,” and threatening to “take every one of you out,” writing that “you semite [sic] pieces of s- will be annihilated.” Two days later, HOBGOOD sent a second threatening email to the same organization, again making a reference to the religion of the recipients. In his plea agreement, HOBGOOD admitted that he selected the targets of his offense of conviction because of the actual and perceived religion of the victims.
"It is abhorrent to threaten someone with violence because of who they are or how they worship. The FBI worked tirelessly with prosecutors from the U.S. Attorney’s Office for the Middle District Of North Carolina to ensure Jeffrey Hobgood could not offer excuses for his hate-filled messages and would instead, serve time in federal prison," said Robert M. DeWitt, the FBI Charlotte Special Agent in Charge.
The case was investigated by the Federal Bureau of Investigation’s civil rights and public corruption squad, the Troy Police Department, and the Charlotte-Mecklenburg Police Department. The case was prosecuted by Assistant United States Attorneys JoAnna G. McFadden and Ashley R. Waid.
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United States Attorney’s Office Hosts National Crime Victims’ Rights Week CeremonyRead the Press Release
GREENSBORO – Yesterday, the United States Attorney’s Office for the Middle District of North Carolina- with the Victim Services Interagency Counsel of North Carolina, Triad Ladder of Hope, and the Greensboro Police Department – hosted an event honoring victims of crime in Guilford County.
The event, attended by community members, law enforcement partners, and victims’ rights groups, is part of the Department of Justice’s annual National Crime Victims’ Rights Week (NCVRW) that pays tribute each year to the victims of crime all around the nation. Speakers at the event included US Attorney Sandra J. Hairston, Assistant District Attorney for Guilford County Kelly Thompson, Dr. Irish Spencer of Families Against Senseless Killings, and Deputy Chief Renae Sigmon and Detective Caroline Holliday of the Greensboro Police Department.
In 2022, there were nearly 20 million crime victimizations in the United States. More than 6.6 million were the result of violent crimes, including rape or sexual assault, robbery, aggravated assault, and simple assault. Of that 6.6 million, only about 42% were reported to police. In 2023, Guilford County reported hundreds of cases of child abuse, sexual assault, domestic violence, gun violence, homicide, and human trafficking.
“As prosecutors, law enforcement officers, and victim/witness professionals, we are committed to upholding the rights of crime victims and providing them with vital assistance,” said United States Attorney Sandra J. Hairston. “We are honored to do this work, and are inspired by the remarkable strength and resilience of the victims we meet. The people gathered here today, whether they be survivors, advocates, or members of law enforcement, share a powerful bond. You may come from different neighborhoods and different walks of life, but you are bound by courage and a commitment to make our community safer and stronger.”
Each year in April, the U.S. Attorneys’ Offices recognize National Crime Victims’ Rights Week (NCVRW), which honors crime victims and those who serve them. This year, NCVRW is April 21-27, and the theme is How would you help? Options, services, and hope for crime survivors. This year, the USAO is focusing on creating safe environments for crime victims to share what happened to them and offer support, options for life-saving services, and most importantly, hope. Learn how you can help by visiting https://OVC.OJP.Gov/NCVRW2024.
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U.S. Attorneys for the Eastern, Middle, and Western Districts of North Carolina, Department of Housing & Urban Development Office of Inspector General Host Community Conversation on Combatting Sexual Harassment in HousingRead the Press Release
RALEIGH, N.C. – United States Attorneys Michael Easley for the Eastern District of North Carolina, Sandra Hairston for the Middle District of North Carolina, and Dena King for the Western District of North Carolina joined the Civil Rights Division and the Department of Housing and Urban Development’s Office of Inspector General (HUD OIG) in hosting a community conversation today focused on the use of the Fair Housing Act to prevent and address complaints of sexual harassment in HUD-assisted housing.
“In our ongoing commitment to ensure justice and safety for all, we are proud to co-host a community conversation with a focus on combating sexual harassment in housing,” said U.S. Attorney Michael Easley. “This event represents a crucial step in our collaborative efforts to create a safe living environment for all people.”
“Abusing power and control over housing by committing acts of sexual harassment violates a person’s right to equal housing opportunities,” said U.S. Attorney King. “My Office remains steadfast in our commitment to enforce federal civil rights laws to combat sexual harassment in housing, protect vulnerable tenants and housing applicants, and hold accountable landlords, property managers, and owners who violate these statutes.”
“Sexual harassment of citizens who are pursuing safe and affordable housing will not be tolerated,” said U.S. Attorney Hairston. “This reprehensible conduct is often inflicted on people who feel they do not have an avenue to seek help. We hope today’s seminar has provided our partner agencies and organizations with information that can be shared with citizens who may have fallen prey to this illegal activity.”
“Sexual harassment and sexual assault in HUD-assisted housing are discriminatory actions that violate a tenants’ rights to safe and fair housing,” said Inspector General Oliver Davis. “We are proud to work closely with our partners at the U.S. Attorneys’ Offices and the Department of Justice and will continue to enforce the Fair Housing Act by pursuing bad actors who take advantage of tenants and prospective tenants in violation of the law.”
The virtual engagement signified the partnership between the federal agencies to promote the health and safety of tenants residing in HUD-assisted housing by working together to bring justice to victims of predatory landlords and other housing providers who sexually harass or sexually assault tenants in violation of the federal Fair Housing Act. The topics included discussions about the Fair Housing Act and tenant rights under the law, how to recognize and report sexual misconduct in housing, and case studies.
Participants included representatives from legal aid offices, fair housing organizations, and other community organizations who assist underserved and underrepresented communities with housing. Participants were encouraged to share their experiences, concerns, and expertise to forge future partnerships and provide resource assistance to beneficiaries when reporting allegations of sexual misconduct in housing.
If you or someone you know has information about or has been a victim of sexual harassment, sexual assault, or sexual exploitation—even if the events occurred years ago—report it to the HUD Office of Inspector General Hotline at 1-800-347-3735 or visit the website at www.hudoig.gov/hotline.
You may also file a complaint with HUD’s Office of Fair Housing and Equal Opportunity at https://www.hud.gov/fairhousing/fileacomplaint.
You may also contact the U.S. Department of Justice at 1-844-380-6178 or visit www.civilrights.justice.gov.
Individuals who believe they may have been victims of sexual harassment or other housing discrimination may also contact the U.S. Attorney’s Office at:
Eastern District of North Carolina: (919) 856-4530
Middle District of North Carolina: (336) 333-5351
Western District of North Carolina: Charlotte (704) 344-6222 or Asheville (828) 271-4661
For more information on the three North Carolina U.S. Attorney’s Offices, priorities, and resources available to help the community, please visit:
Eastern District of North Carolina: https://www.justice.gov/usao-ednc
Middle District of North Carolina: https://www.justice.gov/usao-mdnc
Western District of North Carolina: https://www.justice.gov/usao-wdnc
Registered Sex Offender Sentenced for Possession of Child PornographyRead the Press Release
GREENSBORO – A 42-year-old Asheboro 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 following a cybertip found that in October 2022, a video of child pornography was distributed by an IP address associated with RICHARD WILSON ADKINS, JR., a sex offender registered in Randolph County. In December 2022, the Randolph County Sheriff’s Office (RCSO) arrested ADKINS. Subsequent forensic analysis of ADKINS’ personal cell phone and a media platform used by ADKINS revealed more than 1,700 image files and nearly 2,000 video files of child pornography.
United States District Court Judge Thomas D. Schroeder sentenced ADKINS to a 120-month term of imprisonment followed by 10 years of supervised release. In addition, ADKINS was ordered to pay restitution totaling $98,000.00 and special assessments totaling $1,100.00. He pleaded guilty to one count of possession of child pornography on December 6, 2023.
The case was investigated by the Randolph County Sheriff’s Office, the Department of Homeland Security-Investigations, and the North Carolina State Bureau of 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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Randolph County Man Sentenced to 30 Years for Possession and Production of Child PornographyRead the Press Release
GREENSBORO – A 46-year-old Archdale man was sentenced today to a total of 360 months in prison after pleading guilty to one count of possession of child pornography and one count of production of child pornography, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
According to court records, acting on tips provided to the National Center for Missing and Exploited Children and other agencies, the Archdale Police Department interviewed KEVIN THOMAS FAISON on January 31, 2021. During the interview FAISON admitted to viewing and exchanging images of child pornography online. The following day, FAISON gave written consent to the search of three smartphones in his possession. On one of the phones, investigators discovered more than 300 images of child pornography, including multiple images that appeared to have been produced by FAISON. Forensic analysis of FAISON’s other phones revealed additional images of child pornography, including images produced by FAISON.
United States District Court Judge Loretta C. Biggs sentenced FAISON to a 120-month term of imprisonment for the possession of child pornography count and to a 240-month term of imprisonment for the production of child pornography count and ordered that the terms run consecutively. Upon release from prison, FAISON will be subject to lifetime supervised release. In addition, FAISON was ordered to pay restitution to victims totaling $32,500.00 and special assessments totaling $5,000.00. He pleaded guilty to one count each of possession and production of child pornography on November 9, 2022.
The case was investigated by the Archdale Police Department, the Department of Homeland Security Investigations, and the North Carolina State Bureau of Investigations. The case was prosecuted by Assistant United States Attorneys Lindsey A. Freeman and JoAnna G. McFadden.
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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Defendants Sentenced for Drug Trafficking that Resulted in Two DeathsRead the Press Release
GREENSBORO – Two defendants whose 18-month long drug conspiracy resulted in the death of one college student and contributed to the death of another have been sentenced, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
CYE LEANCE FRASIER, also known as “The Barber,” age 44, was sentenced today to 29 years in prison, and CARLISA RENEA ALLEN, age 46, was sentenced on February 13, 2024, to 28 years in prison. FRASIER pleaded guilty on October 25, 2023, to conspiracy to distribute 500 grams or more of cocaine hydrochloride, and conspiracy to distribute a mixture and substance containing a detectable amount of fentanyl, resulting in death. ALLEN was found guilty at trial on November 17, 2023, of conspiracy to distribute cocaine and fentanyl resulting in death; distribution of cocaine hydrochloride; possession with intent to distribute cocaine; possession with intent to distribute fentanyl; and possession of a firearm in furtherance of a drug trafficking crime.
Evidence presented at trial, including thousands of text messages between ALLEN and FRASIER, photographs and a note retrieved from ALLEN’s cellphone, and Cash App and Venmo records, showed that ALLEN and FRASIER marketed themselves to local college students as a source of narcotics, primarily cocaine. On occasion, the pair knowingly sold fentanyl. The evidence also showed that the death of Joshua Skip Zinner on or about March 9, 2023, resulted from the use of cocaine laced with fentanyl that he had purchased from the ALLEN and FRASIER drug conspiracy. At sentencing, the court heard from Zinner’s family members, as well as family members of Elizabeth Grace Burton, who also died after ingesting cocaine laced with fentanyl purchased directly from Frasier.
“The heinous and inhumane actions of these defendants led to the senseless loss of two young lives,” said United States Attorney Hairston. “While nothing will ever erase the pain of the families who suffered these tremendous losses, the sentences send a strong message of deterrence to people who consider selling poisonous mixtures of illegal drugs. We also hope this prosecution helps prevent future tragedies by raising public awareness of the serious risk users face when consuming illegal substances, which increasingly contain potentially lethal amounts of fentanyl and other dangerous drugs.”
Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division stated, “Dangerous drug traffickers are enriching their lives by profiting off someone else’s pain. The number of lives forever changed as a result of this greed are far too numerous to count.”
“We cannot simply sit back and continue watching our community members, including students at our institutions of higher learning, die senseless deaths,” said Orange County Sheriff Charles Blackwood. “Our education and awareness efforts must prepare people for the realities of today. Fentanyl is in substances everywhere, and it is deadly.”
FRASIER was sentenced to a 348-month term of imprisonment and ALLEN was sentenced to a 336-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, FRASIER will be subject to supervised release for 5 years. ALLEN will be subject to supervised release for 5 years following her release from prison. They were both ordered to pay restitution to the families of Joshua Skip Zinner and Elizabeth Grace Burton in the amount of $8,000 dollars and $11,304 dollars, respectively. Both students died after using fentanyl-laced cocaine provided to them by ALLEN and FRASIER in furtherance of their drug conspiracy.
The case was investigated by the Drug Enforcement Administration, Orange County Sheriff’s Office, Durham Police Department, Duke University Police Department, Raleigh Police Department, Raleigh/Wake County City-County Bureau of Identification, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Cary Police Department, North Carolina State Highway Patrol, Nash County Sheriff’s Office, and the Harnett County Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys Michael A. DeFranco and Tracy M. Williams-Durham.
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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North Carolina Man Found Guilty of Felony and Misdemeanor Charges Related to Jan. 6 Capitol BreachRead the Press Release
WASHINGTON – A North Carolina man was found guilty in the District of Columbia on Wednesday, Feb. 21, 2024, of felony and misdemeanor charges related to his conduct during the Jan. 6, 2021, breach of the U.S. Capitol. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.
Christopher Raphael Spencer, 43, of Pilot Mountain, North Carolina, was convicted of obstruction of an official proceeding, a felony, and misdemeanor offenses of entering and remaining in a restricted building or grounds, disorderly and disruptive conduct in a restricted building or grounds, disorderly conduct in a Capitol building, and parading, demonstrating, or picketing in a Capitol building.
Spencer was convicted following a stipulated bench trial in front of U.S. District Court Judge Colleen Kollar-Kotelly. Spencer will be sentenced at a later date.
According to the government’s stipulated evidence, Spencer and his wife, Virginia Marie “Jenny” Spencer, traveled from Pilot Mountain, North Carolina, to Washington, D.C., to see the former President on Jan. 6, 2021. At some time during the day, the couple walked to the U.S. Capitol building and into the restricted permitter of the Capitol grounds, bypassing bike rack barricades.
The couple made their way into a crowd of rioters gathered near the Inauguration stage on the west side of the Capitol building. The two watched as rioters attacked police and climbed the walls of the Capitol and the Inauguration stage scaffolding. The couple then ascended the stairs underneath the scaffolding to the Northwest Terrace near the Senate Wing of the Capitol.
At approximately 2:19 p.m., the Spencers entered the Capitol building via the Senate Wing Door. The couple then made their way into the Crypt and observed as rioters clashed with police. During this time, Christopher filmed a Facebook Live Video and urged rioters to “Don’t stop!” in relation to an ensuing struggle with police. The two then made their way to the second floor and went briefly into the hallway offices of former Speaker of the House, Nancy Pelosi. Christopher Spencer again recorded a Facebook live video in which he stated, “Where’s Nancy’s office?”
The couple then made their way to the House Chamber and Christopher recorded a video, in which he stated, “Kick that m— open!” in reference to the House Chamber Door. In another video, Christopher yelled, “Smile, m—, smile b—, f— traitor!” at United States Capitol Police officers as they were involved in an altercation with a rioter.
The couple spent approximately 30 minutes inside the Capitol. The FBI arrested the couple on Feb. 8, 2021, in North Carolina.
Virginia Marie “Jenny” Spencer was previously sentenced to 90 days incarceration for her role in the matter.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Middle District of North Carolina.
The case was investigated by the FBI’s Charlotte and Washington Field Offices. The U.S. Capitol Police and the Metropolitan Police Department provided valuable assistance.
In the 37 months since Jan. 6, 2021, more than 1,313 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 469 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
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Former Chatham Housing Executive SentencedRead the Press Release
GREENSBORO – A Durham, North Carolina woman was sentenced today to 30 months in prison, after pleading guilty to conspiring to commit wire fraud that victimized the Chatham County Housing Authority, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
JOANN JOHNSON DAVIS, age 65, was sentenced to a 30-month term of imprisonment and ordered to pay restitution in the amount of $194,136 by the Honorable Thomas D. Schroeder, United States District Judge in the United States District Court for the MDNC. DAVIS will be subject to supervised release for 2 years following her release from prison. She pleaded guilty on May 1, 2023, to one count of conspiracy to commit wire fraud, a violation of Title 18, United States Code, Section 1349.
According to court records and evidence presented at sentencing, DAVIS and others engaged in a bid-rigging, no-work jobs conspiracy between 2016 and 2020 while DAVIS served as the Executive Director of the Chatham County Housing Authority (CCHA). The CCHA is a Public Housing Authority (PHA) that received funds from the U.S. Department of Housing and Urban Development (HUD), including under HUD’s Housing Choice Voucher Program, colloquially known as Section 8, which assists low-income families, the elderly, and the disabled with affording decent, safe, and sanitary housing in the private market. HUD regulations require PHAs to contract out micro-purchase and small-purchase jobs at a reasonable cost. DAVIS used her authority as executive director of the CCHA to direct these contracts to various friends and relatives by creating false bid proposals to “compete” with them, thereby demonstrating “reasonable” cost. DAVIS and various co-conspirators used stolen identities and company letterhead of actual people and businesses to give the false bid proposals the appearance of legitimacy. DAVIS would then select the bid proposal submitted by her friend or family member as the winner and award the CCHA contract to that individual, knowing there had been no assessment of “reasonable” cost, and regardless of whether that friend or family member was qualified to perform the contracted work. Often, no work at all was performed under these contracts. Regardless, the CCHA would pay the friend or family member. In total, between 2016 and 2020, DAVIS awarded CCHA contracts to no fewer than thirteen friends and relatives without any competitive bidding process, and the CCHA paid more than $200,000 to DAVIS’ friends and relatives for alleged contract work. DAVIS sometimes received kickbacks from these individuals in exchange for rigging the bid process and directing payment to that person for jobs not performed.
“Access to decent, safe, and sanitary housing is a basic human need,” said U.S. Attorney Hairston. “Misappropriating funds intended to help people afford decent housing is unconscionable, and we are grateful to the agencies that investigated this conduct and helped hold this defendant accountable.”
“Safeguarding taxpayer funded programs and resources that benefit low-income families in our communities is vital to the success of HUD’s programs,” said Special Agent in Charge Jerome Winkle, with the U.S. Department of Housing and Urban Development, Office of Inspector General. “HUD OIG remains steadfast in its commitment to work closely with Federal prosecutors, law enforcement agencies, and state and local partners to aggressively investigate those who threaten HUD programs.”
“JoAnn Davis was entrusted to spend money intended to help improve the lives of others. She abused that trust by misusing the government funding to enrich her own life and the lives of her family and friends. The FBI is committed to hold accountable anyone who commits this type of fraud," said Robert M. DeWitt, the FBI Special Agent in Charge.
A co-defendant, Clintess Roberta Barrett-Johnson, age 55, of Durham, NC, pleaded guilty to one count of conspiracy to commit wire fraud and was sentenced on November 13, 2023, to four years’ probation and ordered to pay $57,179.00 in restitution.
Another co-defendant, Mi’chelle Necole Bell-Johnson, age 34, of Charlotte, NC, pleaded guilty to one count of conspiracy to commit wire fraud and was sentenced on September 18, 2023, to three years’ probation and ordered to pay $83,977.50 in restitution.
The case was investigated by the HUD Office of Inspector General and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney JoAnna G. McFadden.
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Greensboro Man Pleads Guilty to Multiple Firearms Offenses Relating to Possession and Sale of Drop-in Auto Sears and Glock Conversion DevicesRead the Press Release
GREENSBORO –A Greensboro man pleaded guilty today to multiple firearms charges including one count of unlawfully dealing in firearms, one count of possession of a machinegun, and one count of trafficking in firearms, announced Sandra J. Hairston, United States Attorney for the Middle District of North Carolina.
According to court documents, in 2023, MAHMOUD MAZEN ABU-DAMES, 24, was trafficking privately made firearms (PMFs) and machinegun conversion devices (MCDs) online using Telegram, an internet based, online messaging application. ABU-DAMES advertised the sale of 3-D printed drop-in auto sears, which are devices designed and intended to convert semi-automatic rifles into fully automatic machineguns, as well as Glock conversion devices, commonly referred to as “switches,” which are used to convert Glock pistols into fully automatic machineguns. In August of 2023, an undercover agent (UC) began communicating with ABU-DAMES through Telegram about purchasing drop-in auto sears and Glock conversion devices. ABU-DAMES agreed to sell the UC four to five drop-in auto sears and one Glock conversion device. When ABU-DAMES learned the UC lived in the Greensboro area, he insisted on leaving the package on Palmetto Trail, a walking trail located off Old Battleground Road in Greensboro. ABU-DAMES also included four dosage units of Xanax and asked the UC to find a market for them.
After the first transaction, ABU-DAMES offered to sell the UC two AR-15 pistol variants, along with two drop-in auto sears to convert them to fully automatic machineguns. He also offered to sell the UC another Glock conversion device or “switch.” ABU-DAMES described both firearms as “ghost guns” and noted that they did not have serial numbers. When the UC met with ABU-DAMES to conduct the second transaction, the UC saw that one of the firearms still had a serial number on it. The UC informed ABU-DAMES that he planned to traffic the firearm to Mexico and ABU-DAMES requested that the UC obliterate the serial number before doing so to ensure it would not be traced back to him. During this transaction, the UC was accompanied by a confidential informant (CI) who was a convicted felon. When the UC asked ABU-DAMES if it was legal for the CI to possess a firearm, ABU-DAMES told the UC it was not legal for the CI to have a firearm as a convicted felon but suggested that it would be better for the CI to carry the PMF rather than the serialized firearm since it had no identifiable markings. A few weeks later, one final transaction was conducted. In that transaction ABU-DAMES demonstrated how to install a Glock conversion device.
On October 2, 2023, agents with the Bureau of Alcohol Tobacco, Firearms, and Explosives executed a search warrant at ABU-DAMES’ residence. Agents recovered three 3-D printers, numerous firearms, dozens of MCDs, and two unmarked plastic bags containing green and blue tablets, identical to the suspected Xanax that ABU-DAMES previously included during his transactions with the UC.
Sentencing is scheduled to take place on July 26, 2024, at 11:00 a.m. in Winston-Salem, North Carolina, courtroom #4, before United States District Judge Loretta C. Biggs. At sentencing, ABU-DAMES faces a maximum sentence of fifteen years in prison, a period of supervised release of at least three years, fines, and other monetary penalties.
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.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Greensboro Police Department, and the Federal Bureau of Investigation in New Jersey and is being prosecuted by Assistant United States Attorney Nicole R. DuPré.
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Justice Department and State of North Carolina Secure $13.5 Million Agreement with First National Bank of Pennsylvania to Resolve Redlining Claims in North CarolinaRead the Press Release
The Justice Department and the State of North Carolina jointly announced today that First National Bank of Pennsylvania (FNB) has agreed to pay $13.5 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black and Hispanic neighborhoods in Charlotte and Winston-Salem, North Carolina. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of residents in those communities.
“Lending discrimination violates the law and harms communities and entire families for generations,” said Attorney General Merrick B. Garland. “Today’s settlement will invest $13.5 million in expanding access to credit services for Black and Hispanic neighborhoods in Charlotte and Winston-Salem that for too long have been denied to them. With this settlement, the Justice Department’s Combating Redlining Initiative has now secured over $122 million in relief for communities across the country. But we recognize how much work we have left to do, and we are not letting up in our efforts to combat discrimination in lending wherever it occurs.”
“This agreement will have a transformative impact for Black and Hispanic communities, providing them with new opportunities to become homeowners, bank in their neighborhoods and create generational wealth,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “As we take time across the nation to commemorate Black History Month, we must also create space to acknowledge the ongoing harms caused by structural racism and long-term discrimination. Modern-day redlining is a stain on our economy and underscores the need to keep pushing for equal economic opportunity and racial justice in our country. The Justice Department stands ready to hold banks and financial institutions accountable to ensure that communities of color are not shut out of access to mortgage credit due to modern-day redlining.”
“The devastating effects of discriminatory lending that become entrenched in neighborhoods can reverberate through generations,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “The settlement announced today demonstrates our commitment to combating redlining and ensuring the equal access to credit required by law. We will continue our efforts to hold accountable financial institutions that avoid communities of color in their markets or erect barriers that make it harder for minority residents to access credit. Banks and mortgage companies should evaluate their lending practices and take immediate corrective action to reach underserved communities in their market areas.”
“When banks discriminate, it means hardworking people can’t buy a house, start a business, or invest in their futures,” said North Carolina Attorney General Josh Stein. “I want every person who calls North Carolina home to have a fair shot, and I’m pleased that this settlement will create better borrowing opportunities for all North Carolinians.”
The complaint alleges, from 2017 through 2021, FNB, including as successor in interest to Yadkin Bank, which it acquired in 2017, failed to provide mortgage lending services to predominantly Black and Hispanic neighborhoods in Charlotte and Winston-Salem, and discouraged people seeking credit in those communities from obtaining home loans. FNB’s home mortgage lending was focused disproportionately on white areas of Charlotte and Winston-Salem. For example, other lenders generated applications in predominantly Black and Hispanic neighborhoods at two-and-a-half times the rate of FNB in Charlotte and four times the rate of FNB in Winston-Salem. FNB’s branches in both cities were also overwhelmingly located in predominantly white neighborhoods, with the bank closing its sole branch in a predominantly Black and Hispanic neighborhood in Winston-Salem in 2021.
The complaint further alleges that FNB relied on mortgage loan officers working out of predominantly white areas to generate loan applications and that the bank did not track how its mortgage loan officers developed loan referrals or how they distributed the bank’s mortgage marketing materials.
The Justice Department and the State of North Carolina have resolved their claims via two proposed consent orders, which are both subject to court approval. The consent orders require FNB to invest $13.5 million to increase credit opportunities for communities of color in Charlotte and Winston-Salem. Specifically, FNB will:
- Invest at least $11.75 million in a loan subsidy fund to increase access to home mortgage, home improvement and home refinance loans for residents of majority-Black and Hispanic neighborhoods in FNB’s Charlotte and Winston-Salem service areas;
- Spend $1 million on community partnerships to provide services related to credit, consumer financial education, homeownership and foreclosure prevention for residents of predominantly Black and Hispanic neighborhoods in those service areas;
- Spend $750,000 for advertising, outreach, consumer financial education and credit counseling focused on predominantly Black and Hispanic neighborhoods in those service areas;
- Open three new branches in predominantly Black and Hispanic neighborhoods in Charlotte and Winston-Salem (two in Charlotte and one in Winston-Salem), with at least one mortgage banker assigned to each branch; and
- Hire a director of community lending who will oversee the continued development of lending in communities of color.
FNB also agreed to retain independent consultants to enhance its fair lending program and better meet the communities’ needs for mortgage credit. The bank will conduct a community credit needs assessment, evaluate its fair lending compliance management systems, and conduct staff trainings.
FNB worked cooperatively with the Justice Department and the State of North Carolina to resolve and remedy the redlining concerns that were identified and agreed to settle this matter without contested litigation. During the course of the investigation, FNB established a Special Purpose Credit Program to provide greater access to home loans in communities of color across the seven states where it does business and the District of Columbia.
With assets of over $45 billion, FNB is headquartered in Pennsylvania and operates approximately 350 branches throughout the District of Columbia, Maryland, North Carolina, Ohio, Pennsylvania, South Carolina, Virginia, and West Virginia. It is among the 100 largest banks in the United States.
In October 2021, Attorney General Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since 2021, the department has announced 12 redlining resolutions and secured over $122 million in relief for communities of color that have been the victims of lending discrimination across the country.
A copy of the joint complaint and information about Justice Department’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the U.S. Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
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Justice Department and State of North Carolina Secure $13.5 Million Agreement with First National Bank of Pennsylvania to Resolve Redlining Claims in North CarolinaRead the Press Release
The Justice Department and the State of North Carolina jointly announced today that First National Bank of Pennsylvania (FNB) has agreed to pay $13.5 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black and Hispanic neighborhoods in Charlotte and Winston-Salem, North Carolina. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of residents in those communities.
“Lending discrimination violates the law and harms communities and entire families for generations,” said Attorney General Merrick B. Garland. “Today’s settlement will invest $13.5 million in expanding access to credit services for Black and Hispanic neighborhoods in Charlotte and Winston-Salem that for too long have been denied to them. With this settlement, the Justice Department’s Combating Redlining Initiative has now secured over $122 million in relief for communities across the country. But we recognize how much work we have left to do, and we are not letting up in our efforts to combat discrimination in lending wherever it occurs.”
“This agreement will have a transformative impact for Black and Hispanic communities, providing them with new opportunities to become homeowners, bank in their neighborhoods and create generational wealth,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “As we take time across the nation to commemorate Black History Month, we must also create space to acknowledge the ongoing harms caused by structural racism and long-term discrimination. Modern-day redlining is a stain on our economy and underscores the need to keep pushing for equal economic opportunity and racial justice in our country. The Justice Department stands ready to hold banks and financial institutions accountable to ensure that communities of color are not shut out of access to mortgage credit due to modern-day redlining.”
“The devastating effects of discriminatory lending that become entrenched in neighborhoods can reverberate through generations,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “The settlement announced today demonstrates our commitment to combating redlining and ensuring the equal access to credit required by law. We will continue our efforts to hold accountable financial institutions that avoid communities of color in their markets or erect barriers that make it harder for minority residents to access credit. Banks and mortgage companies should evaluate their lending practices and take immediate corrective action to reach underserved communities in their market areas.”
“When banks discriminate, it means hardworking people can’t buy a house, start a business, or invest in their futures,” said North Carolina Attorney General Josh Stein. “I want every person who calls North Carolina home to have a fair shot, and I’m pleased that this settlement will create better borrowing opportunities for all North Carolinians.”
The complaint alleges, from 2017 through 2021, FNB, including as successor in interest to Yadkin Bank, which it acquired in 2017, failed to provide mortgage lending services to predominantly Black and Hispanic neighborhoods in Charlotte and Winston-Salem, and discouraged people seeking credit in those communities from obtaining home loans. FNB’s home mortgage lending was focused disproportionately on white areas of Charlotte and Winston-Salem. For example, other lenders generated applications in predominantly Black and Hispanic neighborhoods at two-and-a-half times the rate of FNB in Charlotte and four times the rate of FNB in Winston-Salem. FNB’s branches in both cities were also overwhelmingly located in predominantly white neighborhoods, with the bank closing its sole branch in a predominantly Black and Hispanic neighborhood in Winston-Salem in 2021.
The complaint further alleges that FNB relied on mortgage loan officers working out of predominantly white areas to generate loan applications and that the bank did not track how its mortgage loan officers developed loan referrals or how they distributed the bank’s mortgage marketing materials.
The Justice Department and the State of North Carolina have resolved their claims via two proposed consent orders, which are both subject to court approval. The consent orders require FNB to invest $13.5 million to increase credit opportunities for communities of color in Charlotte and Winston-Salem. Specifically, FNB will:
- Invest at least $11.75 million in a loan subsidy fund to increase access to home mortgage, home improvement and home refinance loans for residents of majority-Black and Hispanic neighborhoods in FNB’s Charlotte and Winston-Salem service areas;
- Spend $1 million on community partnerships to provide services related to credit, consumer financial education, homeownership and foreclosure prevention for residents of predominantly Black and Hispanic neighborhoods in those service areas;
- Spend $750,000 for advertising, outreach, consumer financial education and credit counseling focused on predominantly Black and Hispanic neighborhoods in those service areas;
- Open three new branches in predominantly Black and Hispanic neighborhoods in Charlotte and Winston-Salem (two in Charlotte and one in Winston-Salem), with at least one mortgage banker assigned to each branch; and
- Hire a director of community lending who will oversee the continued development of lending in communities of color.
FNB also agreed to retain independent consultants to enhance its fair lending program and better meet the communities’ needs for mortgage credit. The bank will conduct a community credit needs assessment, evaluate its fair lending compliance management systems, and conduct staff trainings.
FNB worked cooperatively with the Justice Department and the State of North Carolina to resolve and remedy the redlining concerns that were identified and agreed to settle this matter without contested litigation. During the course of the investigation, FNB established a Special Purpose Credit Program to provide greater access to home loans in communities of color across the seven states where it does business and the District of Columbia.
With assets of over $45 billion, FNB is headquartered in Pennsylvania and operates approximately 350 branches throughout the District of Columbia, Maryland, North Carolina, Ohio, Pennsylvania, South Carolina, Virginia, and West Virginia. It is among the 100 largest banks in the United States.
In October 2021, Attorney General Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since 2021, the department has announced 12 redlining resolutions and secured over $122 million in relief for communities of color that have been the victims of lending discrimination across the country.
A copy of the joint complaint and information about Justice Department’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the U.S. Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
El Departamento de Justicia y el Estado de North Carolina llegan a un acuerdo de $13.5 millones con First National Bank de Pennsylvania para resolver quejas de exclusión financiera en North CarolinaRead the Press Release
El Departamento de Justicia y el Estado de North Carolina anunciaron conjuntamente hoy que First National Bank de Pennsylvania (FNB) ha acordado pagar $13.5 millones para resolver las alegaciones que incurrió en un patrón o una práctica de discriminación crediticia al practicar la exclusión financiera en barrios de mayoría negra e hispana en Charlotte y Winston-Salem, North Carolina. La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios crediticios a individuos que viven en comunidades de color por motivos de la raza, el color de piel o el origen nacional de las personas que viven en esas comunidades.
“La discriminación crediticia infringe la ley y perjudica a comunidades y familias enteras durante generaciones”, comentó el Fiscal General Merrick B. Garland. “El acuerdo de hoy invertirá $13.5 millones en la expansión del acceso a servicios crediticios para barrios negros e hispanos en Charlotte y Winston-Salem que durante demasiado tiempo se les ha denegado. Con este acuerdo, la Iniciativa contra la Exclusión Financiera del Departamento de Justicia ha conseguido más de 122 millones de dólares en ayuda para comunidades por todo el país. No obstante, reconocemos cuánto trabajo nos queda por hacer, y no desistiremos nuestros esfuerzos por combatir la discriminación crediticia dondequiera que ocurra”.
“Este acuerdo tendrá un impacto transformador para las comunidades negras e hispanas, proporcionándoles nuevas oportunidades para convertirse en propietarios, realizar operaciones bancarias en sus mismos barrios y crear riqueza generacional”, afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “A medida que dedicamos tiempo en todo el país para conmemorar el Mes de la Historia Negra, también debemos crear un espacio para reconocer los daños continuos causados por el racismo estructural y la discriminación a largo plazo. La exclusión financiera de hoy es una mancha en nuestra economía y subraya la necesidad de seguir presionando para lograr la igualdad de oportunidades económicas y la justicia racial en nuestro país. El Departamento de Justicia está preparado para responsabilizar a los bancos e instituciones financieras con el fin de garantizar que las comunidades de color no dejen de tener acceso al crédito hipotecario debido a la exclusión financiera actual”.
“Los efectos devastadores de los préstamos discriminatorios que se arraigan en los barrios pueden reverberar durante generaciones”, declaró Sandra J. Hairston, al Fiscal Federal para el Distrito Centro de North Carolina. “El acuerdo que se ha anunciado hoy demuestra nuestro compromiso a combatir la exclusión financiera y garantizar el acceso igualitario al crédito requerido por la ley. Seguiremos esforzándonos por responsabilizar a las instituciones financieras que evitan las comunidades de color en sus mercados o que construyen barreras que dificulten el acceso al crédito a los residentes minoritarios. Los bancos y las compañías hipotecarias deben evaluar sus prácticas crediticias y tomar medidas correctivas inmediatas para llegar a las comunidades desatendidas en sus áreas de mercado”.
“Cuando los bancos son discriminatorios, significa que las personas trabajadoras no pueden comprar una casa, establecer un negocio o invertir en su futuro”, afirmó Josh Stein, el Fiscal General de North Carolina. “Quiero que todo residente de North Carolina tenga la misma oportunidad, y me complace que este acuerdo cree mejores oportunidades crediticias para todos en North Carolina”.
La queja alega que, desde el 2017 hasta el 2021, el FNB, incluido como sucesor en interés de Yadkin Bank, que adquirió en el año 2017, no proporcionó servicios de préstamos hipotecarios a barrios de mayoría negra e hispana en Charlotte y Winston-Salem, y desalentó a las personas que buscaban crédito en esas comunidades de obtener préstamos hipotecarios. Los préstamos hipotecarios de FNB se centraron de forma desproporcionada en áreas blancas de Charlotte y Winston-Salem. Por ejemplo, otros prestamistas generaron solicitudes en barrios de mayoría negra e hispana a una tasa dos veces y media mayor a la del FNB en Charlotte y cuatro veces mayor a la del FNB en Winston-Salem. Las sucursales del FNB en ambas ciudades también estaban, de forma abrumadora, ubicadas en barrios de mayoría blanca, y el banco cerró su única sucursal en un barrio de mayoría negra e hispana en Winston-Salem en el 2021.
Más aún, la queja alega que el FNB se basó en prestamistas hipotecarios que trabajaban en áreas de mayoría blanca para generar solicitudes de préstamos y que el banco no realizó un seguimiento de cómo sus prestamistas hipotecarios desarrollaron referencias de préstamos o cómo distribuyeron los materiales de mercadeo hipotecario del banco.
El Departamento de Justicia y el Estado de North Carolina han resuelto sus quejas a través de dos órdenes de consentimiento propuestas, que están sujetas a la aprobación del tribunal. Las órdenes de consentimiento requieren que el FNB invierta $13.5 millones para mejorar las oportunidades crediticias para las comunidades de color en Charlotte y Winston-Salem. En concreto, FNB:
- Invertirá al menos $11.75 millones en un fondo de subsidios para préstamos para aumentar el acceso a préstamos hipotecarios, mejoras en la vivienda y préstamos de refinanciamiento residencial para residentes de barrios de mayoría negra e hispana en las áreas de servicio del FNB en Charlotte y Winston-Salem;
- Gastará $1 millón en asociaciones comunitarias para proporcionar servicios relacionados con el crédito, la educación financiera del consumidor, la adquisición de viviendas y la prevención de ejecuciones hipotecarias para residentes de barrios de mayoría negra e hispana en esas áreas de servicio;
- Gastará $750,000 en publicidad, proyección comunitaria, educación financiera al consumidor y asesoramiento de crédito centrado en barrios de mayoría negra e hispana en esas áreas de servicio;
- Abrirá tres nuevas sucursales en barrios de mayoría negra e hispana en Charlotte y Winston-Salem (dos en Charlotte y uno en Winston-Salem), con al menos un bancario hipotecario asignado a cada sucursal; y
- Empleará a un Director de Préstamos Comunitarios que supervisará el desarrollo continuo de préstamos en comunidades de color.
Asimismo, el FNB acordó contratar a consultores independientes para mejorar su programa de préstamos justos y satisfacer mejor las necesidades de crédito hipotecario de las comunidades. El banco llevará a cabo una evaluación de las necesidades crediticias comunitarias, evaluará sus sistemas de gestión de cumplimiento con las leyes de préstamos justos y llevará a cabo capacitaciones del personal.
El FNB colaboró con el Departamento de Justicia y el Estado de North Carolina para resolver y corregir las preocupaciones de exclusión financiera que se identificaron y acordó resolver este asunto sin litigios impugnados. Durante el transcurso de la investigación, el FNB estableció un programa de crédito para fines especiales para proporcionar mayor acceso a préstamos hipotecarios en comunidades de color en los siete estados donde opera y en el Distrito de Columbia.
Con activos de más de $45 mil millones, el FNB tiene su sede central en Pennsylvania y opera aproximadamente 350 sucursales en todo el Distrito de Columbia, Maryland, North Carolina, Ohio, Pensilvania, South Carolina, Virginia y West Virginia. Se encuentra entre los 100 bancos más grandes de los Estados Unidos.
En octubre del 2021, el Fiscal General Merrick B. Garland y la Fiscal General Auxiliar Kristen Clarke lanzaron la Iniciativa contra la Exclusión Financiera del Departamento de Justicia, un esfuerzo coordinado de aplicación de la ley para abordar esta forma persistente de discriminación contra las comunidades de color. Desde el año 2021, el Departamento ha anunciado doce casos de exclusión financiera y ha obtenido más de $122 millones por concepto de compensación para comunidades de color que han sido víctimas de discriminación crediticia por todo el país.
Puede encontrar una copia de la queja e información sobre la aplicación de las leyes de préstamos justos del Departamento en www.justice.gov/fairhousing. Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea.
U.S. Attorney’s Office Collects $9,881,859.25 in Civil and Criminal Actions in Fiscal Year 2023Read the Press Release
Greensboro, NC -- U.S. Attorney Sandra J. Hairston announced today that the United States Attorney’s Office for the Middle District of North Carolina (MDNC) collected $9,881,859.25 in criminal and civil actions in Fiscal Year 2023. Of this amount, $7,799,811.20 was collected in criminal actions and $2,082,048.05 was collected in civil actions.
“Recovering criminal and civil debts, including restitution owed to crime victims, is a vital part of our mission,” said U.S. Attorney Hairston. “We appreciate the work of our federal, state, and local law enforcement partners and we will continue to prioritize collections in order to hold criminals accountable, collect debts to the government, and compensate victims of crime.”
Criminal collections in MDNC in FY23 included more than $6.6 million recovered from sales of properties belonging to Thomas Earl Tilley. In 2015, Tilley pled guilty to an elaborate scheme of sham trusts, fake corporations, and other nominee entities in order to hide his income and assets, including real property, from the IRS, thereby preventing the IRS from assessing and collecting Tilley’s federal tax debts. He was sentenced to 32 months of imprisonment and ordered to pay restitution to the IRS in the amount of $7,676,757.00. Following his conviction, Tilley continued to obstruct efforts to collect his restitution debt including the filing of fraudulent UCC financing statements, transferring properties to a trust controlled by his son, and selling, or attempting to sell, several properties without paying the proceeds toward his restitution debt. In 2019, the United States filed a civil action to void the property transfers as fraudulent and to enforce the United States’ lien. The court-ordered property sales in 2023 marked the end of years of litigation and produced funds sufficient to satisfy the remaining restitution balance of $6,650,223.25.
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 Middle District of North Carolina, working with partner agencies and divisions, collected approximately $2.0 million in asset forfeiture actions in FY 2023. Forfeited assets deposited into the Department of Justice and Department of Treasury Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Assistant United States Attorney Nicole DuPré Honored as 2023 AUSA of the Year by Homeland Security InvestigationsRead the Press Release
GREENSBORO – Assistant United States Attorney (AUSA) Nicole DuPré of the Middle District of North Carolina has been honored as the 2023 Assistant United States Attorney of the Year for the state of North Carolina by Homeland Security Investigations (HSI), announced United States Attorney Sandra J. Hairston.
Each year, the HSI Charlotte regional office recognizes the outstanding work and partnerships of federal, state, and local law enforcement officers and prosecutors from North Carolina and South Carolina.
AUSA DuPré received the award in recognition of her work on the investigation and prosecution of Chester Fletcher Wallace. On July 14, 2023, after a four-day trial, Wallace was convicted of conspiracy to commit sex trafficking by force, threats of force, fraud, and coercion, and five counts of using force, threats of force, fraud, and coercion to cause five victims to engage in commercial sex acts. Wallace was sentenced in November 2023 to six concurrent life terms of imprisonment and ordered to pay restitution in the amount of $914,401.07.
“AUSA DuPré, co-counsel Tanner Kroeger (currently a trial attorney with the National Security Division of the Department of Justice), and the agents investigating this case worked tirelessly to ensure that the victims received justice,” said U. S. Attorney Hairston. “This award is extremely well-deserved and recognizes AUSA DuPré’s commitment to fighting human trafficking. This heinous crime targets the most vulnerable in our society, and our office will continue to fight against individuals who exploit others for profit.”
Each year, the Department of Justice recognizes National Human Trafficking Awareness month in January, to better educate the public about the signs of human trafficking and bring awareness to the victims. For more information about the signs of human trafficking or to get help for you or someone you know who may be a victim of human trafficking, visit https://www.dhs.gov/blue-campaign/about-blue-campaign.
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United States Attorney’s Office Hosts Human Trafficking Simulation for Human Trafficking Awareness MonthRead the Press Release
GREENSBORO – United States Attorney Sandra J. Hairston announced today that the United States Attorney’s Office for the Middle District of North Carolina (USAO-MDNC), in partnership with Triad Ladder of Hope 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 first human trafficking simulation to allow law enforcement, community members, 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. Over fifty 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.
“Human trafficking takes place in every state across the United States, and the public is law enforcement’s most valuable partner in identifying cases and preventing this heinous crime,” said United States Attorney Sandra Hairston. “Our office is proud to host this event to educate members of both the community and law enforcement on the ways to recognize and prevent human trafficking, and we will continue to prosecute these cases to the fullest extent of the law.”
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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Randleman Man Convicted for Trafficking Fentanyl, Cocaine, Methamphetamine, and HeroinRead the Press Release
WINSTON-SALEM – A Randolph County man, who was convicted in May 2023 after a four-day jury trial, was sentenced yesterday on four drug trafficking charges, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
JOSEPH KENNETH NEWBOLD, age 65, was indicted in November 2022 on one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute fentanyl, one count of possession with intent to distribute cocaine hydrochloride, and one count of possession with intent to distribute heroin. According to court documents, NEWBOLD, of Randleman, was charged after a search warrant executed at his home revealed narcotics buried in multiple locations in the woods around his property. Investigators located 1505 grams of methamphetamine, 49 grams of fentanyl, 166 grams of cocaine hydrochloride, and 8 grams of heroin.
NEWBOLD was sentenced yesterday to a 168-month term of imprisonment by the Honorable Loretta C. Biggs, United States District Judge in the United States District Court for the MDNC. In addition to prison time, NEWBOLD will be subject to supervised release for 5 years following his release from prison.
This case arises from an investigation by the Drug Enforcement Administration and the Randolph County Sheriff’s Office. The case was prosecuted by Special Assistant United States Attorney Mary Ann Courtney and Assistant United States 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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North Carolina Man Convicted of Federal Hate Crimes for Racially Motivated Attacks Against Black and Hispanic MenRead the Press Release
WASHINGTON – A jury today in Greensboro, North Carolina, convicted Marian Hudak, 52, for committing a hate crime against a Black man and a Hispanic man on separate occasions.
“It’s one thing to use racial slurs and harbor the KKK’s flag, but carrying out acts of violence fueled by naked racial animus and hatred violates the law and core principles of our democracy. The defendant was held accountable for his violent and unlawful attacks on Black and Hispanic members of his community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will vigorously investigate and prosecute violence targeting people because of their race or national origin. All community members should be able to live in and move about their neighborhoods without fear of attack because of how they look or where they are from.”
“All people — regardless of the color of their skin or their nationality — are entitled to travel on public roads and enjoy their homes without fear of being threatened, harassed or intimidated,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “We appreciate the law enforcement agencies who diligently sought justice in this case. The Concord community is safer and more peaceful as a result of today’s verdict.”
“Investigating civil rights violations is some of the most important work we do,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “No one should be afraid to drive down the street, fill their car with gas or take their children to the bus stop because of someone’s intolerance and racial hatred. The FBI hopes this guilty verdict can give Mr. Hudak's victims some sense of peace."
Evidence at trial proved that, on Oct. 13, 2022, Hudak encountered a Black man, identified as J.S., while driving in Concord, North Carolina, and shouted racial slurs at him. After telling J.S. to “come here, boy,” Hudak swerved into J.S.’s lane, got out of his vehicle and punched J.S.’s driver’s side window multiple times. When J.S. fled, Hudak chased him to his home where he continued shouting racial slurs and threatened to shoot and kill him.
Evidence at trial also proved that on Nov. 27, 2021, Hudak attacked his Hispanic neighbor, J.D., outside J.D.’s home because of his nationality. Hudak shouted racially charged insults at J.D. before attacking him. Hudak punched and tackled J.D., causing J.D. to suffer bodily injury. Additional trial witnesses testified about Hudak’s frequent anti-Hispanic comments, both before and after the attack on J.D., and about other instances where Hudak shouted slurs at, gave the middle finger to and drove aggressively near other minority motorists in the Concord area. Other evidence included a KKK flag, a racist publication and Nazi memorabilia found in Hudak’s residence.
On June 26, 2023, Hudak was charged with willfully injuring, intimidating or interfering with J.S. because of J.S.’s race and color and because J.S. was using a public facility. Hudak was charged with willfully injuring, intimidating or interfering with J.D. because of J.D.’s race and national origin and because J.D. was occupying a dwelling.
A sentencing hearing has been scheduled for May 1. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Charlotte Field Office investigated the case.
Assistant U.S. Attorneys Ashley Waid and JoAnna McFadden for the Middle District of North Carolina and Trial Attorney Daniel Grunert of the Civil Rights Division’s Criminal Section are prosecuting the case.
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North Carolina Man Convicted of Federal Hate Crimes for Racially Motivated Attacks Against Black and Hispanic MenRead the Press Release
A jury today in Greensboro, North Carolina, convicted Marian Hudak, 52, for committing a hate crime against a Black man and a Hispanic man on separate occasions.
“It’s one thing to use racial slurs and harbor the KKK’s flag, but carrying out acts of violence fueled by naked racial animus and hatred violates the law and core principles of our democracy. The defendant was held accountable for his violent and unlawful attacks on Black and Hispanic members of his community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will vigorously investigate and prosecute violence targeting people because of their race or national origin. All community members should be able to live in and move about their neighborhoods without fear of attack because of how they look or where they are from.”
“All people — regardless of the color of their skin or their nationality — are entitled to travel on public roads and enjoy their homes without fear of being threatened, harassed or intimidated,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “We appreciate the law enforcement agencies who diligently sought justice in this case. The Concord community is safer and more peaceful as a result of today’s verdict.”
“Investigating civil rights violations is some of the most important work we do,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “No one should be afraid to drive down the street, fill their car with gas or take their children to the bus stop because of someone’s intolerance and racial hatred. The FBI hopes this guilty verdict can give Mr. Hudak's victims some sense of peace."
Evidence at trial proved that, on Oct. 13, 2022, Hudak encountered a Black man, identified as J.S., while driving in Concord, North Carolina, and shouted racial slurs at him. After telling J.S. to “come here, boy,” Hudak swerved into J.S.’s lane, got out of his vehicle and punched J.S.’s driver’s side window multiple times. When J.S. fled, Hudak chased him to his home where he continued shouting racial slurs and threatened to shoot and kill him.
Evidence at trial also proved that on Nov. 27, 2021, Hudak attacked his Hispanic neighbor, J.D., outside J.D.’s home because of his nationality. Hudak shouted racially charged insults at J.D. before attacking him. Hudak punched and tackled J.D., causing J.D. to suffer bodily injury. Additional trial witnesses testified about Hudak’s frequent anti-Hispanic comments, both before and after the attack on J.D., and about other instances where Hudak shouted slurs at, gave the middle finger to and drove aggressively near other minority motorists in the Concord area. Other evidence included a KKK flag, a racist publication and Nazi memorabilia found in Hudak’s residence.
On June 26, 2023, Hudak was charged with willfully injuring, intimidating or interfering with J.S. because of J.S.’s race and color and because J.S. was using a public facility. Hudak was charged with willfully injuring, intimidating or interfering with J.D. because of J.D.’s race and national origin and because J.D. was occupying a dwelling.
A sentencing hearing has been scheduled for May 1. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Charlotte Field Office investigated the case.
Assistant U.S. Attorneys Ashley Waid and JoAnna McFadden for the Middle District of North Carolina and Trial Attorney Daniel Grunert of the Civil Rights Division’s Criminal Section are prosecuting the case.
Stanley County Man Pleads Guilty to Filing Fraudulent Tax ReturnRead the Press Release
GREENSBORO – BRANTLEY TODD FORREST, of Stanly County, appeared in federal court today on tax fraud charges, announced Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina. FORREST pleaded guilty to filing a false tax return, a violation of Title 26, United States Code, Section 7206(1), after an investigation revealed that he had withheld information from a tax return preparer regarding income related to his business.
According to court-filed documents, FORREST owned and operated a business known as Fence Pro of the Carolinas. The investigation revealed that during the years 2017-2021, FORREST concealed $2,068,864 in gross revenues from the Internal Revenue Service and his tax return preparer. The income that FORREST reported on his returns was so low that he qualified for tax credits designed for low-income, working individuals and COVID relief payments. FORREST’s conduct caused a tax loss of over $500,000.
“Federal income tax compliance should be equally shared among all Americans,” said Donald “Trey” Eakins, Special Agent in Charge, IRS Criminal Investigation, Charlotte Field Office. “Conspiring to defraud the government by underreporting taxable income is unlawful. Mr. Forrest’s plea today serves as an important reminder that IRS CI is committed to bringing to justice those who dodge their federal income tax responsibilities.”
Sentencing is scheduled to take place on April 30, 2024, at 11:30 a.m. in Greensboro, North Carolina, courtroom number 1, before United States District Court William L. Osteen, Jr. At sentencing, FORREST faces a maximum sentence of three years in prison, a period of supervised release of up to one year, and monetary penalties.
Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina made the announcement after United States District William L. Osteen, Jr. accepted the plea. Internal Revenue Service - Criminal Investigation is investigating the case and Assistant U.S. Attorney Ashley Waid is prosecuting the case.
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Justice Department Secures Denaturalization of Convicted Serial Child Rapist Who Fraudulently Obtained U.S. CitizenshipRead the Press Release
GREENSBORO – On December 20, 2023, the Honorable Catherine C. Eagles, Chief United States District Judge in the United States District Court for the Middle District of North Carolina, entered an order revoking the naturalized U.S. citizenship of a convicted serial child rapist. The court held that defendant Gaetan Joseph Helard Lecompte, a native of Canada, illegally procured his U.S. citizenship. The court’s order was based on its finding that Lecompte lacked the good moral character required to naturalize because he had fraudulently concealed numerous sexual offenses in order to illegally procure citizenship.
According to court records, on July 17, 2009, Lecompte made a materially false statement under penalty of perjury on his naturalization application. In response to the question “Have you ever committed a crime or offense for which you were not arrested?” he answered “No.” On October 5, 2009, Lecompte was interviewed in person and under oath by a U.S. Citizenship and Immigration Services officer. During the interview, Lecompte orally testified that he had never committed a crime or offense for which he had not been arrested. On October 29, 2009, Lecompte took the Oath of Allegiance and was granted U.S. citizenship.
On August 1, 2011, in the Superior Court of North Carolina in Forsyth County, Lecompte was convicted of 52 felony offenses, including statutory rape, first degree sex offense with a child, indecent liberties with a child, and dissemination of obscene materials to a minor. Lecompte was sentenced to a life term of imprisonment. He confessed to having committed the offenses against five different child victims between 1991 and 2005. Lecompte was not arrested until after he naturalized, thus immigration officials were unaware of his crimes.
United States Attorney Sandra J. Hairston of the Middle District of North Carolina made the announcement. The case was investigated by ICE’s Enforcement and Removal Operations Division as part of Operation False Haven, an ongoing initiative designed to aggressively target child molesters and other egregious felons who fraudulently obtained citizenship. The case was jointly prosecuted by a Trial Attorney of the Civil Division’s Office of Immigration Litigation Enforcement Unit and Assistant U.S. Attorney Brandon Zeller of the U.S. Attorney’s Office for the Middle District of North Carolina, with assistance from ICE’s Office of the Principal Legal Advisor.
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Durham Crips Gang Member Sentenced for Possession of FirearmRead the Press Release
GREENSBORO – A North Carolina man was sentenced yesterday to 10 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).
TYRICO DEVONTE BOWENS, age 30, of Durham, was sentenced to a 120-month term of imprisonment by the Honorable William L. Osteen, Jr., United States District Judge in the United States District Court for the MDNC. He pleaded guilty on September 29, 2023, to felon in possession of a firearm, a violation of Title 18, United States Code, Section 922(g)(1).
According to court records, BOWENS, a member of the Eight Trey Gangster Crips street gang, was at a family gathering in Apex, North Carolina on December 31, 2022, when he retrieved a 10mm Glock handgun from his car after an argument with his girlfriend’s father. When family members attempted to intervene, BOWENS discharged the firearm in front of the home. Officers with the Apex Police Department recovered a S&B 10mm cartridge casing from the yard.
Five days later, the gang unit with the Durham Police Department (DPD) arrested BOWENS at his residence on charges related to the December 31, 2022, incident and searched his home. They recovered three loaded firearms, including a 10mm Glock handgun. A forensic firearms examiner with DPD microscopically compared the S&B 10mm cartridge casing recovered from the December 31, 2022 incident with a cartridge casing test fired from the Glock 10mm handgun and determined that, based on similar class characteristics and sufficient agreement of individual characteristics, the 10mm cartridge casing recovered from the scene on December 31, 2022, was fired from the Glock 10mm handgun.
At the time of these offenses, BOWENS had been previously convicted of Assault with a Deadly Weapon Inflicting Serious Injury and Second-Degree Kidnapping (Durham County – 2013); Conspiracy to Commit Robbery with a Dangerous Weapon, Possession of Firearm by Felon, and Conspiracy to Intimidate Witnesses (Durham County – 2014); Possession of Firearm by Felon and Concealed Carry (Durham County – 2018); and Possession of Firearm by Felon and Possession with Intent to Sell or Distribute Cocaine (Durham County – 2023). In connection with these offenses, BOWENS was sentenced to multiple terms of imprisonment exceeding one year. Thus, at the time of the offenses, BOWENS was legally barred from possessing a firearm due to his status as a felon.
The case was investigated by the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force (SSTF), the Durham Police Department, the Durham County Sheriff’s Office, and the Apex Police Department. The lead investigator was an FBI Task Force Officer from the Durham Police Department. The case was prosecuted by Assistant United States Attorneys Laura Jeanne Dildine and JoAnna G. McFadden.
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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Harnett County Man Sentenced to 50 Years for Exploitation of a Child and Distribution of Child PornographyRead the Press Release
GREENSBORO – A Dunn man was sentenced today to 600 months in prison after pleading guilty to one count of sexual exploitation of a child and one count of distribution of child pornography, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
According to court records, JOSHUAH TAYLOR BRADSHAW, 33, was arrested after his roommate discovered a series of disturbing photos and videos associated with his email account. After the Hoke County Sheriff’s Office (HCSO) was notified of possible criminal activity, they executed a search warrant on BRADSHAW’S personal devices where they discovered evidence that he had abused a minor as well as 150 videos and 200 images of child pornography. BRADSHAW was subsequently arrested in August 2020.
In June 2021, the HCSO contacted the FBI for additional assistance investigating the case. A review of forensic files revealed over 600 images and 500 videos of sexually explicit content including minors. The files also included instances of BRADSHAW abusing a minor that he then distributed to other individuals.
BRADSHAW was sentenced to a 600-month term of imprisonment followed by 25 years of supervised release by the Honorable Catherine C. Eagles, United States District Judge in the United States District Court for the MDNC. In addition to prison time, BRADSHAW was ordered to pay restitution to victims totaling $27,500.00 and special assessments totaling $5,200.00. He pleaded guilty to one count of sexual exploitation of a child and one count of distribution of child pornography on June 20, 2023.
The case was investigated by the Federal Bureau of Investigation and the Hoke County Sheriff’s Office and 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 Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Winston-Salem Woman Pleads Guilty to False Statements in Connection with Cares Act LoanRead the Press Release
WINSTON-SALEM – MICHELLE RENEE HOLLIS, of Winston-Salem, pled guilty today to one count of making a false statement related to fraudulently obtaining an Economic Injury Disaster Loan (“EIDL”) authorized under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act and administered by the Small Business Association (“SBA”), announced United States Attorney Sandra J. Hairston.
According to court documents, HOLLIS received an EIDL loan for a business called “Hollis House.” The loan application falsified the business’s gross revenues and number of employees. Based on the fraudulent representations, the SBA granted HOLLIS an EIDL loan of $134,900 and an EIDL grant of $5,000. Following disbursement of the loan, HOLLIS used the proceeds to purchase land in California and a 2017 Porsche Cayenne.
Sentencing is scheduled to take place on March 12, 2024, at 3:00 p.m. in Winston-Salem, North Carolina, courtroom number two, before United States District Judge Thomas D. Schroeder. At sentencing, HOLLIS faces a maximum sentence of five years 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.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Med First Agrees to Pay $1,450,000 to Resolve Health Care Fraud Allegations in South Carolina ClinicRead the Press Release
GREENSBORO - Med First Immediate Care & Family Practice, P.A. (Med First) has agreed to pay the government $1,450,000 to resolve False Claims Act allegations that its clinic in Dillon, South Carolina had been operating as a pill mill and falsely filing claims to Medicare and Medicaid for medically unnecessary urine drug testing (UDT), as well as lengthy and complex office visits that were not performed, announced U.S. Attorney Sandra J. Hairston.
The United States and the State of North Carolina alleged that between January 1, 2015, and August 15, 2019, Med First, through its Dillon clinic, knowingly submitted or caused to be submitted claims to Medicare and Medicaid for presumptive and definitive UDT that were not medically reasonable or necessary. Presumptive UDT are tests that screen for the presence of drugs, and definitive UDT are tests that identify the concentration of those drugs in a patient’s system. The government contended that Med First performed both of these tests at nearly every patient office visit for patients on opioid therapy, and that the majority of patients at the Dillon clinic were receiving opioids during the relevant time period. Med First performed the repetitive testing without conducting individualized determinations of need or risk profile. In addition, the results of the UDT were often disregarded as the opioid prescription rarely altered despite unexpected UDT results.
The United States and the State of North Carolina further alleged that Med First billed for office visits, known as Evaluation and Management (E/M) services, at higher levels of complexity than actually provided to patients. There are five levels of E/M services, and the higher the level billed, the more complex and often lengthier the office visit must be. The government alleges that the Dillon clinic provider did not engage in complex office visits when spending little time with patients and simply refilling opioid prescriptions.
The United States initiated its investigation when a whistleblower filed a lawsuit under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblower will receive $261,000 as his share of the governments’ recovery in this matter. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can also be reported to the Department of Health and Human Services at 800 HHS TIPS (800-447-8477).
“This office is committed to fighting against the opioid epidemic using all available resources, including the False Claims Act,” said Sandra J. Hairston, United States Attorney for the Middle District of North Carolina. “The government must deter all providers, and particularly those who prey on vulnerable populations, from enriching themselves off the federal health care programs with the submission of services that are not provided for legitimate medical need.”
“We are continuing to confront a deadly opioid crisis, brought on in part by irresponsible health care providers who flooded their community with unnecessary opioids pills,” said Attorney General Josh Stein. “My office will continue working with our state and federal partners to hold accountable providers who defraud North Carolina taxpayers and harm our people.”
"Providers who put their own profits above their professional responsibilities to appropriately serve their patients and to honestly bill federal health programs put both patient well-being and taxpayer funding at risk,” said Tamala E. Miles, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General. "Our agency, working closely with our law enforcement partners, will continue to investigate alleged health care fraud schemes to protect these safety net programs and the enrollees relying on them."
This case was handled by the U.S. Attorney’s Office for the Middle District of North Carolina with assistance from the Office of Inspector General of the United States Department of Health and Human Services, as well as the North Carolina Attorney General’s Medicaid Investigations Unit. The United States was represented by Assistant United States Attorney Rebecca Mayer.
The lawsuit is captioned United States of America and the State of North Carolina ex rel. Piramzadian v. Med First Immediate Care and Family Practice, P.A., et al., No. 20-CV-352 (M.D.N.C.). The claims settled by this agreement are allegations only, and there has been no determination of liability. The Settlement Agreement is not an admission of liability or wrongdoing by Med First.
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Davie County Man Sentenced to 50 Years for Production and Distribution of Child PornographyRead the Press Release
GREENSBORO – A Mocksville man was sentenced today to 600 months in prison after pleading guilty to production and distribution of child pornography, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
According to court records, in September 2021 the National Center for Missing and Exploited Children (NCMEC) received a cybertip that an individual in Davie County, North Carolina was uploading and distributing child pornography. Law enforcement investigated and determined Steven Tyler SMITH, age 24, was responsible. Based upon a forensic review, SMITH had a total of more than 1,500 images and videos of child sexual exploitation. The investigation further revealed that SMITH sexually abused a 15-18 month old child and shared videos and images of the abuse with others online.
SMITH was sentenced to a 600-month term of imprisonment followed by 20 years of supervised release by the Honorable Thomas D. Schroeder, United States District Judge in the United States District Court for the MDNC. In addition to prison time, SMITH was ordered to pay restitution to victims totaling $91,000 and special assessments totaling $5,200.00. He pleaded guilty to one count of production of child pornography and one count of distribution of child pornography on April 4, 2023.
The case was investigated by the Department of Homeland Security and the Davie County Sheriff’s Office and was prosecuted by Assistant United States Attorneys K. P. Kennedy Gates and Lindsey Freeman.
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 Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Asheboro Man Charged with Possession of a MachinegunRead the Press Release
GREENSBORO – An Asheboro man was charged today with possession of a machinegun, announced Sandra J. Hairston, United States Attorney for the Middle District of North Carolina.
According to publicly filed court documents, KEANDRE BARETTA LEGRAND, 23, of Randolph County, was charged with unlawful possession of a machinegun and illegal possession of a firearm by a felon stemming from an incident which occurred on September 13, 2022. If convicted, LEGRAND faces a maximum term of 15 years of imprisonment, a fine not to exceed $250,000, or both. In addition to a possible prison sentence, LEGRAND will be ordered to forfeit a firearm and ammunition.
A criminal indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Asheboro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being 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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25 Charged in Drug Trafficking ConspiracyRead the Press Release
GREENSBORO, N.C. - A federal indictment was unsealed yesterday charging 25 defendants in a narcotics trafficking conspiracy, announced Middle District of North Carolina United States Attorney Sandra J. Hairston.
The indictment, which followed a two-year investigation, charges the following individuals with conspiracy to distribute methamphetamine, fentanyl, and cocaine hydrochloride in the Counties of Guilford, Randolph, Durham, and Montgomery, in the Middle District of North Carolina, and elsewhere:
- FELIPE AGUILAR-RIOS, also known as “Gallo,”
- ADOLFO MEDRANO-VARGAS,
- ALAN CHRISTOPHER LITTLE, also known as “Rick Ross,”
- ALEX VILLAFUENTE, also known as Alex Villafuerte,
- TRAVIS LAQUAN HEADEN,
- ANA OCHOA-IBARRA, also known as Anna Maria Guada Morales-Iriqui,
- ANGEL YAHIR QUINTERO-ARRENDONDO, also known as Angel Yahir Quintero,
- ANTHONY JAMES BUTLER, also known as “Ant,”
- LORETTA MCCOY LITTLE, also known as Arivette Little and Loretta Arivette Little,
- CAMERINO ATANACIO-HERNANDEZ,
- CESAR AYON GAMBOA,
- CESAR NOE LOPEZ,
- DAMIEN TERRELL CLYBURN, also known as Damian Clyburn and “Rell,”
- EDUARDO JOSUE HERNANDEZ,
- JARED MARCUS MOORE,
- J-KARI CHRISTYLE COLLINS, also known as “J,”
- MERISSA COLLINS WALL, also known as Merissa Faye Collins, Merissa Faye Wall, and “Rissa,”
- MICHAEL JAMES BUTLER,
- NAYELI PEREZ,
- MARY OJEDA,
- OMAR MEZA,
- RASHAD LEQUAN SHIPP, also known as “Green Mile,”
- RODRICK EUGENE LITTLE, also known as “Fruit,”
- RONALD LEE JOHNSON, and
- WESLEY QUEZNEK COLLINS, also known as “Quez.”
Additional counts in the indictment charge some defendants named above with distribution of narcotics, possession with intent to distribute narcotics, possession of a firearm in furtherance of a drug trafficking crime, felon in possession of a firearm, and money laundering.
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, individual defendants face penalties ranging from up to 20 years, 5 years to 40 years, or 10 years to life, for narcotics conspiracy, distribution, and possession with intent to distribute, depending on the drug amounts involved in the offenses; 5 years to life for possession of a firearm in furtherance of a drug trafficking crime; up to 10 years or up to 15 years for felon in possession of a firearm, depending on the date of the offense; and up to 20 years for money laundering. In the event of conviction, a federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The United States Postal Inspection Service, Drug Enforcement Administration, United States Marshals Service, North Carolina State Bureau of Investigation, Montgomery County Sheriff’s Office, Moore County Sheriff’s Office, and Stanly County Sheriff’s Office are investigating the case. The case is being prosecuted by Assistant United States Attorneys Terry M. Meinecke and Craig M. Principe.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Durham Woman Convicted of Drug Trafficking Conspiracy Resulting in Death and Other Drug and Firearms OffensesRead the Press Release
GREENSBORO - A jury in federal district court convicted CARLISA RENEA ALLEN today of multiple drug charges and illegal possession of a firearm, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
According to court documents, ALLEN, age 46, was initially indicted on March 28, 2023, and was tried on charges in a third Superseding Indictment filed October 30, 2023. ALLEN was charged in Count One with conspiracy to distribute 500 grams or more of cocaine hydrochloride, and conspiracy to distribute a mixture and substance containing a detectable amount of fentanyl, resulting in death; in Count Two, with distribution of cocaine hydrochloride; in Count Three with possession with intent to distribute cocaine; in Count Four with possession with intent to distribute a mixture and substance containing a detectable amount of fentanyl; and in Count Five with possession of a firearm in furtherance of a drug trafficking crime.
Evidence at trial showed that the death of Joshua Skip Zinner on or about March 9, 2023, resulted from the use of cocaine hydrochloride and fentanyl distributed in furtherance of the conspiracy.
A jury convicted ALLEN on all counts of the third Superseding Indictment after a four-day trial. At sentencing, ALLEN faces a term of imprisonment of 25 years to life, not less than 4 years of supervised release, and fines, restitution, and forfeiture. Sentencing is scheduled for February 13, 2024, before United States District Judge William L. Osteen, Jr. in Greensboro.
ALLEN’s co-defendant, CYE LEANCE FRASIER, pleaded guilty on October 25, 2023, to conspiracy to distribute 500 grams or more of cocaine hydrochloride, and conspiracy to distribute a mixture and substance containing a detectable amount of fentanyl, resulting in death. FRASIER faces a term of imprisonment of twenty years to life. His sentencing is set for January 31, 2024, in Greensboro.
The case was investigated by the Drug Enforcement Administration, Orange County Sheriff’s Office, Durham Police Department, Duke University Police Department, Raleigh Police Department, Raleigh/Wake County City-County Bureau of Identification, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Cary Police Department, North Carolina State Highway Patrol, Nash County Sheriff’s Office, and the Harnett County Sheriff’s Office. The case was prosecuted by Assistant United States Attorneys Michael A. DeFranco and Tracy Williams-Durham.
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Man Sentenced to 210 Months in Prison on Drug and Weapons ChargesRead the Press Release
GREENSBORO – A Mount Gilead man was sentenced today to more than 17 years in prison after pleading guilty to two drug charges and two firearms charges, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
SAK KEOSOUMA, age 37, was indicted in March 2023 on one count of possession with intent to distribute 50 grams or more of methamphetamine, one count of possession with intent to distribute 40 grams or more of fentanyl, and three counts related to his possession of firearms. KEOSOUMA entered a guilty plea to the drug counts and two of three gun counts on May 1, 2023.
According to court documents, investigators seized approximately 138 grams of methamphetamine, 232 grams of fentanyl, 16 grams of suspected heroin, 3,759 grams of marihuana, 230 grams of suspected hallucinogenic mushrooms, and approximately $26,750 in United States currency.
Additionally, according to court documents, the firearms seized included a Glock 9mm pistol, an Aero Precision multi-caliber rifle, and nine privately manufactured firearms bearing no serial numbers. These nine privately manufactured and untraceable firearms are also known as “ghost guns.” Seven of the nine ghost guns were Polymer 80 9mm pistols. The other two ghost guns included a .300Blk caliber rifle with an attached firearm silencer that also lacked serial numbers, and a 7.62x39mm/.223 caliber rifle with a “Wide Open Trigger” installed that allowed the rifle to fire automatically, thus constituting a “machinegun” under the National Firearms Act (NFA). Both the silencer and the rifle with the “Wide Open Trigger” constituted NFA "firearms” that require a license and registration in the National Firearms Registration and Transfer Record (NFRTR).
KEOSOUMA was sentenced to a 210-month term of imprisonment by the Honorable Loretta C. Biggs, United States District Judge in the United States District Court for the MDNC. In addition to prison time, KEOSUMA was ordered to forfeit 11 firearms and more than 500 rounds of ammunition and will be subject to supervised release for 4 years following his release from prison.
This case arises from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Montgomery County Sheriff's Office, the Moore County Sheriff's Office and Drug Enforcement Administration Laboratory. The case was prosecuted by Assistant United States Attorney Craig M. Principe.
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Greensboro Man Sentenced to Total of 142 Months on Firearm Offense, Supervised Release ViolationsRead the Press Release
GREENSBORO – RYAN ROBERT AUGHENBAUGH was sentenced today to a total of 142 months 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).
AUGHENBAUGH was indicted in November 2022, and pleaded guilty to the single-count Indictment on July 17, 2023.
AUGHENBAUGH was sentenced to a 115-month term of imprisonment for the felon in possession charge by the Honorable Thomas D. Schroeder, United States District Judge in the United States District Court for the MDNC. In addition, Judge Schroeder sentenced AUGHENBAUGH for two supervised release violations, imposing terms of 27 and 24 months, to run concurrently with each other but consecutive to the 115-month sentence.
This case arises from an investigation by the Greensboro Police Department (GPD) and the Bureau of Alcohol, Tobacco, Firearms and Explosives. According to documents filed in the case and evidence presented at sentencing, on June 29, 2022, GPD responded to a call reporting someone breaking into cars on Westhaven Drive. As officers approached, AUGHENBAUGH - who matched the description of the suspect given by the caller – attempted to flee on foot. He was taken to the ground, and during the ensuing struggle, AUGHENBAUGH discharged a gun, hitting himself in the leg and wounding one of the officers. Officers ultimately recovered two guns from AUGHENBAUGH, both of which had been reported stolen.
As of June 29, 2022, AUGHENBAUGH had been convicted of a crime punishable by more than a year in prison. Most notably, on April 22, 2016, he was sentenced to 36 months of imprisonment for possession of a firearm by a convicted felon by the Hon. Catherine C. Eagles in case number 1:15CR406-1 [MDNC]. He also received a sentence of 24 months of imprisonment on December 14, 2016, in the United States District Court for the Eastern District of North Carolina, for bank fraud in case number 7:15CR98-1.
The case was prosecuted by First Assistant United States Attorney Randall S. Galyon and former Assistant United States Attorney Tanner Kroeger.
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Two Men Sentenced in Relation to Two Robberies of Businesses in Cabarrus County in 2021Read the Press Release
WINSTON SALEM - A judge in federal district court sentenced two Stanly County men, MALIQ RAEKWON PARKER and SEAN CHRISTIAN PARKER, today in relation to two armed robberies of businesses in Cabarrus County in 2021, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
MALIQ PARKER, 20, of Albemarle, was sentenced for his role in both the armed robbery of an AT&T Store in Harrisburg, and the attempted armed robbery of Mount Pleasant Sporting Goods and Pawn, Inc. in Mount Pleasant. MALIQ PARKER was sentenced to 210 months in prison. His codefendant, SEAN PARKER, 23, of Badin, was sentenced for his role in only the attempted armed robbery. SEAN PARKER was sentenced to 148 months in prison.
According to court documents, on October 28, 2021, MALIQ PARKER robbed an AT&T Store in Harrisburg of cell phones using a Glock 9mm pistol. During the robbery, store employees were forced into a rear office at gunpoint where the merchandise was then taken. MALIQ PARKER discharged his firearm once while in the rear office.
According to court documents, on November 4, 2021, an attempted robbery occurred at Mount Pleasant Sporting Goods and Pawn, Inc., in Mount Pleasant where two males attempted to steal a firearm at gunpoint, shooting a store owner six times in the process. After initially being shot, the victim crawled to a nearby counter and obtained a firearm that he used to fend off the robbers. The robbers were later determined to be MALIQ PARKER and SEAN PARKER. Both men were armed with handguns and discharged their firearms during the attempted robbery. MALIQ PARKER shot the victim at very close range with the same Glock 9mm pistol used in the AT&T Store robbery. SEAN PARKER discharged a .40 caliber pistol once, before both men ran out of the store. As the defendants fled, an off-duty Cabarrus County Sheriff’s Office deputy saw the armed men running to their vehicle and engaged them. When SEAN PARKER refused commands to drop the gun, the off-duty deputy shot him, but he still got in the car, and they drove away. The off-duty deputy assisted the victim until paramedics arrived, and the victim survived despite gunshot wounds to his arms, legs, and torso.
SEAN PARKER was dropped off at the hospital where he was treated for his own injuries and was apprehended by police. MALIQ PARKER was apprehended shortly after by officers looking for the grey Ford Focus that was used during the attempted robbery and was later seen on hospital security cameras when SEAN PARKER was dropped off at the hospital. After a search of the vehicle, officers located items previously stolen from the AT&T Store.
United States District Judge Thomas D. Schroeder sentenced MALIQ PARKER to a 210-month term of imprisonment, followed by a 3-year term of federal supervised release. He pled guilty to one count of interference with commerce by robbery and one count of attempted interference with commerce by robbery on July 6, 2023, in case number 1:23CR62-1.
SEAN PARKER was also sentenced to a 148-month term of imprisonment, followed by a 3-year term of federal supervised release. He pled guilty to one count of attempted interference with commerce by robbery on July 6, 2023, in case number 1:23CR62-2.
The case was investigated Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cabarrus County Sheriff's Office, the North Carolina State Bureau of Investigation, the Richland County (S.C.) Sheriff's Department, the Albemarle Police Department, and the Stanly County Sheriff's Office. The case was prosecuted by Assistant United States 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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Randolph Count Man Sentenced to 97 Months for Receipt of Child PornographyRead the Press Release
GREENSBORO – A Trinity man was sentenced yesterday to 97 months in prison after pleading guilty to one felony count of receipt of child pornography announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
According to court records, in August 2021, the National Center for Missing and Exploited Children (NCMEC) received a cybertip that an individual in Trinity, North Carolina was uploading and distributing child pornography. Law enforcement investigated and determined Kevin Lee NUNN was responsible. Based upon a forensic review, NUNN had thousands of images and videos of child sexual exploitation.
NUNN was sentenced to a 97-month term of imprisonment by the Honorable Catherine C. Eagles, Chief United States District Judge in the United States District Court for the MDNC. In addition to prison time, NUNN was ordered to pay restitution to victims totaling $36,500.00 and special assessments totaling $6,100.00. He pleaded guilty to one count of receipt of child pornography on June 9, 2023.
The case was investigated by the Department of Homeland Security and the Randolph County Sheriff’s Office and was prosecuted by Assistant United States Attorneys K. P. Kennedy Gates and Lindsey Freeman.
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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Prisoner Sentenced to Additional 30 Years for Drug Trafficking in Multiple North Carolina Counties Using Contraband Prison CellphonesRead the Press Release
GREENSBORO – ENIS DAUTI was sentenced today to 360 months in prison after pleading guilty to conspiracy to possess with intent to distribute methamphetamine, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
According to court records, DAUTI, age 38, was serving a 108-month prison sentence after pleading guilty to conspiracy to possess with intent to distribute methamphetamine in 2016 in the MDNC and was scheduled to be released from federal prison in August 2023. At the time of the offense, DAUTI was incarcerated at Northlake Federal Correctional Institution (FCI) in Michigan.
Over the course of several months in 2021 and 2022, DAUTI organized multiple sales of methamphetamine that involved codefendants SCOTT ALAN SHORES, ASHLEY NICOLE MORROW, AMY ELLISSA HAMMER, and DANIEL WAYNE MIZE in Davidson and Chatham counties. Each sale involved DAUTI managing the sale of drugs using a contraband prison cellphone to communicate with his codefendants and organize the shipment of methamphetamine through the mail. SHORES, MORROW, HAMMER, and MIZE were indicted alongside DAUTI on one count of conspiracy to possess with intent to distribute quantities of methamphetamine.
DAUTI was sentenced today to a 360-month term of imprisonment and seven years of supervised release by the Honorable Catherine C. Eagles, Chief United States District Judge in the United States District Court for the MDNC.
“This case is a perfect example of the danger contraband cellphones present in our prison facilities,” said United States Attorney Sandra Hairston. “With a contraband cellphone, inmates can continue to run their drug enterprises or commit other crimes from their prison cells. Today’s sentence sends a clear message that such flagrant disrespect for the rule of law will not be tolerated.”
The case was investigated by United States Postal Inspection Service, the Davidson County Sheriff's Office, Homeland Security Investigations, the Drug Enforcement Administration, the Chatham County Sheriff's Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the case was prosecuted by Assistant United States Attorneys Lindsey Freeman and Kyle Pousson.
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Durham Man Sentenced to Six Life Terms in Prison for Sex TraffickingRead the Press Release
GREENSBORO – CHESTER FLETCHER WALLACE was sentenced today to life in prison after being convicted of sex trafficking, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
WALLACE, age 62, was convicted by a jury on July 14, 2023, at the conclusion of a four-day trial. He was convicted of conspiracy to commit sex trafficking by force, threats of force, fraud, and coercion and five counts of using force, threats of force, fraud, and coercion to cause five victims to engage in commercial sex acts.
Evidence at trial showed that WALLACE ran a sex trafficking ring based out of a three-bedroom house located in Durham that he rented from July 2021 until late spring of 2022. 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 that they were photographed for advertisements posted for commercial sex posted on sites such as “Mega Personals” and “Skipthegames,” and that WALLACE and a co-defendant set up the “dates” for commercial sex. The victims further testified that WALLACE established certain house rules that all the victims had to obey and used violence and coercion to enforce the rules of the house. Two victims testified that they tried to run away but WALLACE either found them and brought them back to the house or sent others to do so.
WALLACE was sentenced today to six life terms of imprisonment, to run concurrent with one another, by the Honorable Catherine C. Eagles, Chief United States District Judge in the United States District Court for the Middle District of North Carolina. In addition to prison time, WALLACE was ordered to pay restitution in the amount of $68,000.00. A hearing to determine additional restitution will be held on November 14.
WALLACE’s co-defendant, Leslie Chevonne Stout, pleaded guilty on October 16, 2023, to the conspiracy count. Stout’s sentencing is scheduled for July 18, 2024.
“Today’s sentencing handed down just punishment, and it brings to an end the cruel and inhumane misogyny perpetrated by this defendant,” said United States Attorney Sandra Hairston. “We deeply appreciate the diligent law enforcement officers and prosecutors who worked on the case. Their efforts prevent the defendant and his co-defendant from claiming more victims and provide a measure of justice which we hope will allow the victims to begin healing from this terrible ordeal.”
“The reign of unimaginable terrors that Wallace viciously inflicted upon his victims is over and they can breathe easier knowing he will never again be able to victimize them or anyone else,” said Ronnie Martinez, Special Agent in Charge for HSI Charlotte, which covers North and South Carolina. “This is another example of the great results that are possible when law enforcement and community partners work together. In this case, we must recognize the DHS Center for Countering Human Trafficking and the Durham Police for the invaluable assistance they provided in bringing this monster to justice.”
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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Former State Trooper Sentenced to 21 Years in Prison for Drug ConspiracyRead the Press Release
GREENSBORO – FREDDIE WAYNE HUFF, II was sentenced yesterday to 21 years in prison after pleading guilty to conspiracy to distribute 5 kilograms or more of cocaine hydrochloride, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
HUFF was indicted in September 2022 on one count of conspiracy to distribute 5 kilograms or more of cocaine hydrochloride, one count of distribution of 500 grams or more of cocaine hydrochloride, and one count of possession of a firearm in furtherance of a drug trafficking offense. HUFF pled guilty to the conspiracy charge on February 9, 2023.
HUFF was sentenced to a 252-month term of imprisonment by the Honorable Catherine C. Eagles, Chief United States District Judge in the United States District Court for the MDNC. In addition to prison time, HUFF was ordered to forfeit $500,000 in a money judgment.
This case arises from an investigation by Homeland Security Investigations, the North Carolina State Bureau of Investigation, the Forsyth County Drug Task Force, the Davidson County Sheriff’s Office, and the Winston-Salem Police Department’s Criminal Investigations Division and was prosecuted by First Assistant United States Attorney Randall Galyon.
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Walkertown Man Sentenced to 46 Months for Distributing a Video Depicting Animal CrueltyRead the Press Release
GREENSBORO – TIMOTHY LEWIS BLACKMON was sentenced today to 46 months in prison after pleading guilty to distributing an obscene video depicting animal cruelty after a multi-agency investigation, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
According to court records, BLACKMON, age 45, was charged with one count of possession of child pornography and one count of knowingly selling, marking, advertising, exchanging, and distributing an obscene video depicting an animal cruelty video on July 25, 2022. In March 2022, investigators received an anonymous tip alerting them of an individual in Forsyth County selling videos of himself engaging in animal cruelty on the application “Kik.” A search warrant for BLACKMON’s mobile devices revealed multiple videos of BLACKMON engaging in animal cruelty.
BLACKMON was sentenced today to a 46-month term of imprisonment followed by 3 years of supervised release by the Honorable Catherine C. Eagles, Chief United States District Judge in the United States District Court for the MDNC. In addition to prison time, BLACKMON was ordered to pay $3,000 in restitution to the victims of the charges listed in the indictment.
The case was investigated by Homeland Security Investigations, the Forsyth County Sheriff’s Office and the Forsyth County District Attorney’s Office, and the case was prosecuted by Assistant United States Attorney Nicole DuPré.
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United States Attorney’s Office for Middle District of North Carolina Celebrates Funding Announced During Domestic Violence Awareness MonthRead the Press Release
GREENSBORO - The Department of Justice joins survivors, victim service providers, advocates, and communities nationwide in recognizing October as National Domestic Violence Awareness Month (DVAM). This is a time to center the experiences of survivors, honor those who lost their lives to domestic violence; express gratitude to the countless individuals in the movement to end violence; and raise awareness on the issues of domestic violence, dating violence, sexual assault, and stalking. As part of its monthlong observance of DVAM, the U.S. Attorney’s Office for the Middle District of North Carolina (MDNC) is proud to announce that the Department’s Office on Violence Against Women (OVW) awarded $2,133,002 to the MDNC to bolster coordinated community responses aimed at bringing an end to domestic violence, as well as sexual assault, dating violence, and stalking.
Data from the most recent National Intimate Partner and Sexual Violence Survey indicate about 41% of women and 26% of men experienced contact sexual violence, physical violence, and/or stalking by an intimate partner and reported an intimate partner violence-related impact during their lifetime. Domestic violence rates are even higher for American Indian and Alaska Native populations, Black individuals, people of color, people with disabilities, and LGBTQI+ individuals.
The announced grants will reach Tribal nations, historically marginalized communities, underserved communities, college and university campuses, rural towns, culturally specific communities, and more. The funding prioritizes increasing access to justice, improving survivor safety, holding perpetrators accountable, and offering training and technical support to professionals addressing these crimes.
Specifically, MDNC received the following funds for the 2023 fiscal year:
- OVW awarded $108,034 under State and Territory Domestic Violence and Sexual Assault Coalitions Program to enhance the coordination between courts, child protective services agencies, advocates, law enforcement, and community programs to encourage trauma-informed, survivor-centered responses to domestic violence and sexual assault.
- OVW awarded $108,034 under State and Territory Domestic Violence and Sexual Assault Coalitions Program to enhance the coordination between courts, child protective services agencies, advocates, law enforcement, and community programs to encourage trauma-informed, survivor-centered responses to domestic violence and sexual assault.
- OVW awarded $575,000 under the Grants to Enhance Culturally Specific Services for Victims of Sexual Assault, Domestic Violence, Dating Violence and Stalking Program (Culturally Specific Program) to help community-based organizations develop culturally relevant programs specific to American Indian and Alaska Native populations, Black, Asian-American, Native Hawaiian and Pacific Islander, Hispanic, and Tribal communities to support survivors.
- OVW awarded $399,968 under the Grants to Reduce Sexual Assault, Domestic Violence, Dating Violence, and Stalking on Campus Program (Campus Program) to support colleges and universities to develop and strengthen effective security and investigation strategies for such crimes and to develop prevention education and awareness programs. In addition, OVW awarded $300,000 under the new Strengthening Culturally Specific Campus’ Approaches to Address Domestic Violence, Dating Violence, Sexual Assault, and Stalking Initiative to support new programs at Historically Black Colleges and Universities (HBCUs), Hispanic Serving Institutions (HSIs), and Tribal Colleges and Universities (TCUs).
- OVW awarded $750,000 under the Emerging Issues and Training and Technical Assistance Initiative to organizations exploring new issues in technical assistance projects that address the needs of OVW grantees.
United States Attorney Sandra Hairston commented: “I am pleased to announce that the MDNC has been awarded funding from the Office on Violence Against Women. We are looking forward to continuing our fight to protect victims of domestic violence with the help of these grants and in partnership with our local, state, and federal law enforcement partners.”
“Every day, a vast network of dedicated individuals helps domestic violence survivors access multiple pathways to safety, justice, and healing,” said OVW Director Rosie Hidalgo. “OVW understands that there is no one-size-fits-all approach to addressing domestic violence. These funds will enable communities to increase capacity and strengthen a coordinated community approach to prevent and address violence in more comprehensive ways tailored to their communities. Together, with our grantees, we are building a future where individuals and families can live and thrive without the threat of intimate partner violence.”
OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
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Troy Resident Charged with Communicating ThreatsRead the Press Release
GREENSBORO – Sandra J. Hairston, United States Attorney for the Middle District of North Carolina, announced today that JEFFREY SCOTT HOBGOOD, of Troy, was arrested yesterday and charged with communicating threats.
According to publicly filed court documents, on or about October 11, 2023, HOBGOOD sent an email to an address associated with a Jewish organization stating, in part, “I am going to take out every one of you.” On October 13, 2023, after being contacted by law enforcement, HOBGOOD sent a second email to the same address saying, in part, “Guess what happens to traitors? . . . Public execution. . . . We are at war . . . . If you think you semite pieces of s[***] are going to win, then you are delusional.”
Court documents further allege that in June 2022, HOBGOOD sent multiple threatening emails to a family member.
HOBGOOD is charged with a violation of Title 18, United States Code, Section 875(c), transmitting in interstate commerce a communication containing a threat to injure the person of another. If convicted, HOBGOOD faces a maximum term of 5 years of imprisonment, a fine not to exceed $250,000, or both.
“No one in America should be threatened based on their race, nationality, religion, gender, or other protected characteristics,” said United States Attorney Sandra J. Hairston. “Individuals who target other community members will be held accountable for their actions.”
“No one should be threatened with violence or acts of hate because of who they are or how they worship. The FBI partners with communities of faith across North Carolina. Crimes driven by hate have no place in our state,” said Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorneys JoAnna McFadden and Ashley Waid.
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United States Attorney’s Office hosts second anti-hate crime forumRead the Press Release
WINSTON-SALEM – The United States Attorney’s Office for the Middle District of North Carolina (USAO-MDNC) and the Federal Bureau of Investigation (FBI) hosted their second anti-hate crime forum today in Winston Salem, announced United States Attorney Sandra J. Hairston.
The Federal government’s Hate Crime Statistics Program began in 1990 to monitor hate crimes and enhance the federal response to crimes motived by bias against race or ethnicity, religion, disability, sexual orientation, gender, or gender identity. The United Against Hate program, launched in 2022 by Attorney General Merrick Garland, aims to increase reporting on hate incidents as well as hate crimes so that law enforcement can identify patterns and trends in their communities and protect victims. The Department of Justice-wide initiative is also designed to educate the community about how to report hate crimes, what resources are available to them, and offers a chance for community members to meet with the USAO and the FBI to learn more about what the Justice Department is doing to reduce hate crime incidents nation-wide.
If you or someone you know has been the victim of a hate crime, you can report the incident directly to the FBI by submitting a tip to the FBI online https://www.fbi.gov/tips or by calling your local FBI field office https://www.fbi.gov/contact-us/field-offices. In the event of an emergency, individuals should always contact 911 first.
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Durham Man Pleads Guilty to Charges Related to $9.5 Million Scheme to Defraud InvestorsRead the Press Release
GREENSBORO –A Durham man pleaded guilty today to wire fraud and securities fraud in connection with a $9.5 million investment fraud scheme, announced Sandra J. Hairston, United States Attorney for the Middle District of North Carolina.
According to court documents, between July 2022 and June 2023, NAYEEM CHOUDHURY, 27, solicited investments for his company, Dream Venture Capital Group, which CHOUDHURY marketed as a fund that traded in option contracts. CHOUDHURY raised approximately $9.5 million from investors and induced victims to invest by promising high rates of return and telling victims that they could invest their capital with no risk. CHOUDHURY also falsely represented to investors that Dream Venture was profitable and that it had a proven track record of successfully trading options. CHOUDHURY lost over $5 million in investor money trading options.
In addition to the massive trading losses, CHOUDHURY used a portion of the investor money on personal expenses, including the purchase of Mercedes Benz, and to make Ponzi-style payments to other investors.
Sentencing is scheduled to take place on March 21, 2024, at 9:30 a.m. in Winston-Salem, North Carolina, courtroom number 4, before United States District Judge Loretta C. Biggs. At sentencing, CHOUDHURY faces a maximum sentence of twenty years in prison, a period of supervised release of up to three years, restitution, and other monetary penalties.
The case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Ashley Waid.
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Durham Man Convicted for Drug Trafficking and Illegal Firearms PossessionRead the Press Release
GREENSBORO, N.C. - A jury in federal district court convicted SHAY NEIL JOHN today on multiple violations of drug trafficking and illegal firearms possession, including possession of a machinegun and fentanyl trafficking, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
According to court documents, SHAY NEIL JOHN, 50, was charged by Indictment on December 19, 2022, and by Superseding Indictments on May 30, 2023 and August 28, 2023, with one count of possession with intent to distribute para-fluorofentanyl, one count of possession with intent to distribute cocaine base, one count of possession of a machinegun in furtherance of a drug trafficking crime, one count of unlawful possession of a machinegun, and one count of felon in possession of a firearm. The events of the indictment and superseding indictments stemmed from an incident in Durham County that occurred on December 13, 2022.
A jury convicted JOHN on all counts of the Superseding Indictment on September 21, 2023 after a three-day trial. At sentencing, JOHN faces a minimum of 30 years in prison and a 3- to 5-year term of supervised release. Sentencing is scheduled for December 12, 2023, before United States District Court Judge William L. Osteen in Greensboro.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Durham Police Department. The case was prosecuted by Assistant United States Attorneys Jake D. Pryor and Stephen T. Inman.
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Concord Men Sentenced for Firearm Offenses After the Pair of Convicted Felons Possessed Guns in Music Video Posted on Social MediaRead the Press Release
WINSTON SALEM, N.C. - A judge in federal district court sentenced AJENEE SEMUELL FORTE to 100 months in prison today for possession of a firearm by a felon, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
According to court documents, in June 2021, detectives with the Cabarrus County Sheriff’s Office discovered a social media account belonging to AHMAD JALON THOMAS, 24, also known as “Cap Shotta,” that contained a link to a music video wherein THOMAS and his co-defendant, AJENEE SEMUELL FORTE, 31, were shown waving and pointing handguns. At the time the music video entitled, “Life on the Run,” was posted on YouTube and Instagram, both THOMAS and FORTE had outstanding orders for arrest. FORTE was also on federal supervised release resulting from a prior conviction for the same offense.
On June 23, 2021, members of the United States Marshals Regional Fugitive Task Force went to an address in Concord, North Carolina, in an attempt to arrest FORTE on the outstanding warrant. He was apprehended, and a search was conducted of the same apartment unit where the music video was filmed. There, officers found firearms, ammunition, drug paraphernalia, and 235.4 grams of marijuana. At the time of the firearm possession, FORTE had previously been convicted of a felony firearm possession offense and was prohibited from possessing firearms or ammunition.
United States District Judge Loretta C. Biggs sentenced FORTE to a 100-month term of imprisonment and a 3-year term of federal supervised release. FORTE pled guilty at arraignment to an Information containing one count of felon in possession of a firearm on November 10, 2022, in case number 1:22CR361-1. His codefendant THOMAS was sentenced for the same crime to 36 months imprisonment and 3 years of supervised release on June 22, 2023, in case number 1:22CR83-2.
The case was investigated by Homeland Security Investigations and the Cabarrus County Sheriff’s Office, with assistance from the United States Marshals Regional Fugitive Task Force. The case was prosecuted by Assistant United States 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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Davidson County Man Sentenced to 30 Years for Production and Possession of Child PornographyRead the Press Release
WINSTON-SALEM – A Lexington man was sentenced today to 360 months in prison after pleading guilty to two felony counts of possession and production of child pornography announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
According to court records, officers encountered ZACHERY GRAY GUNTER, age 43, of Lexington, in May 2020. At the time, GUNTER had outstanding warrants. As part of an unrelated criminal investigation, officers discovered an image of child pornography. Upon further investigation, officers determined Gunter created child sex abuse materials of multiple minors.
GUNTER was sentenced today to a 360-month term of imprisonment by the Honorable Thomas D. Schroeder, United States District Judge in the United States District Court for the MDNC. In addition to prison time, GUNTER was ordered to pay special assessments totaling $2,200.00. He pleaded guilty to one count of possession of child pornography under the age of 12 and one count of production of child pornography on April 5, 2023.
The case was investigated by the Department of Homeland Security and the Davidson County Sheriff’s Office and was prosecuted by Assistant United States Attorneys Lindsey Freeman and JoAnna McFadden.
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.
Raeford Woman Pleads Guilty to Defrauding Insurance Company of More Than $4.5 MillionRead the Press Release
GREENSBORO, NC – Sandra J. Hairston, United States Attorney for the Middle District of North Carolina (MDNC), announced today that KRIS WILLIAMS-FALCON, of Raeford, pleaded guilty to defrauding a victim insurance company out of over $4.5 million.
According to publicly filed court documents, WILLIAMS-FALCON was a Certified Alcohol and Drug Counselor (CADC) in North Carolina. In April 2021, WILLIAMS-FALCON’s CADC license was revoked by the licensing board, and she did not hold any other licenses to provide treatment or counseling. Between April 2021 and January 2023, WILLIAMS-FALCON submitted millions of dollars in claims to the victim insurance company for services that she either did not provide or was not licensed to provide. Among other fraudulent claims, WILLIAMS-FALCON submitted claims for services that she alleged to have provided to herself and family members.
As a result of WILLIAMS-FALCON’s claim submissions, the victim company approved and paid out approximately $4.7 million in reimbursements of which WILLIAMS-FALCON received $4,532,119.
During the course of this investigation, law enforcement traced proceeds of the scheme and seized a 2022 Dodge Charger, a 2022 Land Rover Range Rover Evoque, and a total of approximately $492,000 from bank accounts controlled by the defendant. Administrative forfeiture is pending as to these items. In addition, civil forfeiture is pending against two parcels of real property in Mecklenburg County purchased with a total of approximately $1.5 million in proceeds from the scheme. WILLIAMS-FALCON has not opposed any of the forfeiture actions.
Sentencing is scheduled to take place on November 14, 2023, at 2:30 p.m. in Winston-Salem, North Carolina, courtroom number 2, before United States District Court Judge Thomas D. Schroeder. At sentencing, WILLIAMS-FALCON faces a maximum sentence of ten years in prison, a period of supervised release of up to three years, and monetary penalties.
The case is being investigated by the Federal Bureau of Investigation and the North Carolina Department of Insurance and prosecuted by Assistant United States Attorney Ashley Waid.
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Greensboro Man Sentenced for Illegal Firearms Dealing as a Result of New Legislation Aimed at Building Safer CommunitiesRead the Press Release
GREENSBORO – A Guilford County man was sentenced today to 60 months in prison after pleading guilty to dealing firearms without a license after a lengthy investigation revealed an extensive illegal firearms business, announced United States Attorney Sandra J. Hairston.
According to court records, GREGORY VINCE RACHAL, age 58, of Greensboro, was contacted in September 2020 by law enforcement after sales records revealed that RACHAL had purchased a large number of firearms on multiple occasions that were the same make and model. At the time of the purchases, RACHAL did not have a license to deal firearms, and the sales records mirrored the behavior of a firearms dealer. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) visited RACHAL to inquire about the sales and RACHAL voluntarily admitted to selling firearms without a license. RACHAL said he was not sure that he needed a license and agreed to no longer sell firearms. In the days immediately after the interview, RACHAL continued to obtain additional similar firearms, prompting a federal investigation. In November 2020, local ATF agents received multiple reports that firearms purchased by RACHAL were recovered by law enforcement agencies across multiple states. In total, twenty-seven of RACHAL’s firearms were recovered in Florida, North Carolina, Pennsylvania, and Virginia.
In September 2021, a confidential source revealed to law enforcement that RACHAL owned and operated a tactical supply store located besides his business, POPS Electric, wherein he sold ammunition, tactical gear, and firearms parts, and that he was manufacturing privately-made firearms (PMFs), also known as “ghost guns.”.
In an additional interview with ATF agents in December 2021, RACHAL again admitted that he had continued to sell firearms despite warnings from federal agents. RACHAL also informed the agents that he had maintained a log of all of his firearms transactions which he provided to law enforcement. According to his records, RACHAL had acquired over 200 sterilized firearms between March 2020 and January 2021. His records further detailed that he sold approximately fourteen of those after the initial warning from investigators in September 2020.
In July of 2022, a confidential source (CS) revealed to law enforcement that RACHAL had PMFs for sale at his tactical shop. The CS then made a series of controlled purchases of PMFs at this location that were audio and visually recorded by law enforcement.
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.
“This case is just one example of how our law enforcement agencies work hard each day to keep Americans safe. By tracing and confiscating illegal firearms and removing unlicensed dealers from our communities, the threat that these weapons will fall into the hands of those prohibited from possessing them is substantially decreased,” said U. S. Attorney Sandra Hairston.
On October 31, 2022, RACHAL and one co-defendant were charged in a sealed Indictment. RACHAL was charged with one count of dealing firearms without a license and six counts of knowingly selling firearms to a convicted felon. He pleaded guilty to one count of dealing firearms without a license on March 1, 2023.
RACHAL was sentenced today to a 60 month term of imprisonment by the Honorable Catherine C. Eagles, United States District Judge in the United States District Court for the MDNC. In addition to prison time, RACHAL was ordered to serve two years of supervised release and to pay a $5,000 fine and a special assessment of $100.00.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Greensboro Police Department, and the Guilford County Sheriff’s Office, and was prosecuted by Assistant United States Attorney Nicole DuPré.
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New York Sex Offender Sentenced to 60 Years for Committing Multiple Offenses Against North Carolina MinorRead the Press Release
GREENSBORO – A New York man was sentenced today to 720 months in prison after pleading guilty to multiple offenses committed in North Carolina announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
According to court records, JOSHUA TIMOTHY MILLER, age 33, of Rochester, New York, traveled to North Carolina on two occasions, first in December 2021 and again in February 2022 and engaged in sexually activity with a fifteen-year-old minor. Miller also recorded videos of the minor engaged in sexually explicit conduct while communicating via video chat.
At the time of these offenses, MILLER was a registered sex offender in New York. In 2007, in Monroe County, New York, MILLER was convicted of three counts of first-degree sexual abuse: sexual contact with an individual less than eleven years old and four counts of first-degree attempted sexual act. For these crimes, Miller was sentenced to seven years in prison followed by five years of post-release supervision.
Today, MILLER was sentenced to a 720-month term of imprisonment by the Honorable Catherine C. Eagles, United States District Judge in the United States District Court for the MDNC. In addition to prison time, MILLER was ordered to serve a lifetime term of supervised release and to pay special assessments totaling $1,500.00. He pleaded guilty to two Informations on December 19, 2022. In case number 1:22CR396-1, he pleaded guilty to one violation of Title 18, United States Code Section 2252A(a)(5)(B), possession of child pornography. In case number 1:22CR390-1, he pleaded guilty to two violations of Title 18, United States Code Section 2423(b), traveling to meet a minor for sexual activity and two accompanying violations of Title 18, United States Code Section 2260A, committing a felony offense involving a minor while required to register as a sex offender.
The case was investigated by the Federal Bureau of Investigation with the assistance of a local law enforcement agency and was prosecuted by Assistant United States Attorneys Lindsey Freeman and Eric Iverson.
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 Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Raeford Man Charged with Illegal Possession of FirearmsRead the Press Release
GREENSBORO, NC – Sandra J. Hairston, United States Attorney for the Middle District of North Carolina, announced today that AARON DEON GOODE, JR. of Raeford, age 25, has been charged in federal court with two counts of being a felon in possession of a firearm.
The Indictment alleges that GOODE, having been previously convicted of a felony, did possess firearms, in violation Title 18 United Sates Code Sections 922(g)(1) and 924(a)(2). The charges stem from two separate incidents in August 2019 and October 2021 in Hoke County. If convicted, the defendant faces a maximum term of 10 years of imprisonment, a term of supervised release of not more than 3 years, a fine not to exceed $250,000, and a mandatory special assessment of $100. Forfeiture allegations included in the Indictment also require GOODE to forfeit both firearms. An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty.
“Recovering firearms from the hands of prohibited individuals is a critical step in fighting violent crime,” said ATF Special Agent in Charge Bennie Mims. “The illegal possession of firearms is a serious threat to the community, and recovering these firearms helps make our streets safer.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Hoke County Sheriff’s Office, and the Raeford Police Department. The case is being 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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