Middle District of North Carolina
Press releases recorded for this federal judicial district.
Cabarrus County Man Sentenced to 135 Months in Prison for Illegally Selling over One Hundred Machine Gun Conversion Kits for AR-15 Type Rifles and Other CrimesRead the Press Release
GREENSBORO – A North Carolina man was sentenced on June 24, 2022, to 135 months in prison, followed by a 3-year term of supervised release for two counts of felon in possession of a firearm, one count of unlawful possession of an unregistered firearm, and one count of distribution of cocaine hydrochloride.
According to court documents, Herbert Brooks Humphries, III, 21, was identified by the Cabarrus County Sheriff’s Office (CCSO) as the operator of an account on Snapchat advertising the sale of illegal narcotics, assault rifle parts and machine gun conversion kits, also known as Drop In Auto Sear (DIAS) devices, designed for use in AR-15 type rifles. A DIAS device is a specially designed piece of metal that can be inserted into specific semiautomatic firearms to allow them to function as fully automatic firearms.
An undercover officer (UC) with the CCSO engaged Humphries on Snapchat and expressed interest in purchasing a DIAS device. Beginning July 2020, the UC and Humphries arranged three sales of illegal drugs, a Remington rifle, and over one hundred DIAS devices in Cabarrus County. During the first meeting on July 28, 2020, Humphries sold the UC two DIAS devices. At the second meeting on July 30, 2020, Humphries sold the UC the Remington rifle, five DIAS devices, and four bags of THC marihuana edible gummies. At the final meeting, on August 3, 2020, Humphries sold the UC ninety-five DIAS devices, a small quantity of cocaine, and a quarter pound of marijuana. During this transaction, Humphries possessed and displayed a .38 caliber Ruger handgun, which was later determined to have been reported stolen from Monroe, North Carolina.
“A firearm in the hands of a prohibited individual is a serious threat to public safety,” said ATF Special Agent in Charge Bennie Mims. “This individual’s criminal history with firearms and narcotics, including his attempts to distribute devices that create fully automatic weapons, is a blatant disregard of our laws and our safety. We are grateful that he will no longer be a danger to the community.”
At the time of his arrest, Humphries was a convicted felon and was therefore unable to possess a firearm. Humphries had previous convictions for multiple felonies including a drug distribution offense in the Superior Court of Union County, North Carolina.
The Cabarrus County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Homeland Security Investigations, and the ATF Firearms Technology Criminal Branch assisted with the investigation. This case was prosecuted by Assistant United States Attorney Craig M. Principe.
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Former State Highway Patrol Officer Sentenced for Selling Firearms Without a LicenseRead the Press Release
GREENSBORO, N.C. - Timothy Jay Norman, of Browns Summit, North Carolina, was sentenced today to 37 months in prison for unlawfully transporting and dealing in firearms, announced United States Attorney Sandra J. Hairston.
Norman, age 47, pleaded guilty on March 10, 2022, to dealing in firearms without a license, a violation of Title 18, United States Code, Sections 922(a)(1)(A), 923(a), and 924(a)(1)(D).
According to court-filed documents, beginning in January 2021, the Federal Bureau of Investigation (FBI) learned that Norman was selling firearms to various persons, including a convicted felon, while employed as a North Carolina State Highway Patrol (NCSHP) trooper. During the investigation, the FBI learned that Norman held out for sale, using the convicted felon as a “middleman,” various firearms, which included decommissioned NCSHP service weapons: Sig Sauer P226 .357 semi-automatic pistols; Arma Lite, AR-15 5.56mm semi-automatic rifles, and Beretta, Model 1201FP, 12-gauge shotguns. Thereafter, law enforcement agencies conducted three successful controlled purchase operations.
Specifically, on or about May 12, 2021, law enforcement, using a confidential human source, purchased a decommissioned Sig Sauer P226 .357 semi-automatic pistol, with the NCSHP badge engraved on top of the slide, in a case with two magazines, for $1,600 from Norman. On or about June 8, 2021, agencies, using a source, purchased a Beretta 12-gauge shotgun and an Arma Lite AR-15 semi-automatic rifle, one magazine, one soft black case, and one 50-round drum magazine from Norman at his home in Browns Summit, for $3,200. Finally, on or about June 24, 2021, law enforcement conducted a third successful controlled firearms evidence purchase from Norman, wherein Norman sold a NCSHP Sig Sauer P226 .357 semi-automatic pistol from his patrol car to a source at a closed gas station. Norman received $2,000 in FBI case funds in exchange for the decommissioned weapon. As to all of these firearms, records from the Federal Firearms Licensee (“the FFL”) where Norman purchased them establish that Norman made a significant profit as a result of the various transactions. The records also showed that Norman had purchased thirty-six firearms from the FFL since January 1, 2021.
On July 7, 2021, investigating agencies executed a search warrant on Norman’s home and seized thousands of rounds of ammunition and over fifty firearms. In Norman’s patrol car, they found two more firearms (neither of which was NCSHP-issued), including one AR-15 rifle that Norman purchased from the FFL earlier that year. There was also an envelope with over $2,000 in cash, which included FBI buy money from one of the controlled buy operations referenced above.
Norman was ordered to pay a $15,000 fine and will face three years of supervised release in addition to his 37-month prison sentence.
Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina, made the announcement. Agents with the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, North Carolina State Bureau of Investigation, and North Carolina State Highway Patrol-Internal Affairs Division investigated the case. The case was prosecuted by Assistant U.S. Attorney JoAnna G. McFadden.
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Nurse Sentenced to 54 Months for Drug TamperingRead the Press Release
GREENSBORO – Emilee Kathryn Poteat, 32, of Danville, Virginia, was sentenced today to 54 months in prison for tampering with a consumer product, announced United States Attorney Sandra J. Hairston.
The Poteat indictment, filed in June 2021, charges that from on or about July 1, 2020, continuing up to and including on or about October 28, 2020, the defendant did, with reckless disregard for the risk that another person would be placed in danger of bodily injury and under circumstances manifesting extreme indifference to such risk, tamper and attempt to tamper with a consumer product that affected interstate commerce to wit: three syringes of injectable hydromorphone, in violation of 18 U.S.C. §1365(a)(4).
According to court documents, from July to November 2020, Poteat -- a registered nurse – was employed as a contract nurse in the Clinical Pre/Post Procedure Unit (“CPPU”) at Novant Health Forsyth Medical Center (“NHFMC”) in Winston-Salem, North Carolina. In that capacity Poteat was authorized to access the Pyxes machine located in the CPPU of NHFMC for the purpose of dispensing controlled substances, including injectable Hydromorphone, to patients at the direction of prescribing doctors.
A Pyxes machine is a device used to securely store controlled medications and prevent unauthorized access to such substances. Controlled substances are stored in locked drawers which require entry of both a fingerprint and a password before authorized medical personal can open the drawers to withdraw a controlled substance. Further, a nurse or other authorized person must enter specific prescription information for an actual patient to access prescribed substances secured in the Pyxes machine. Vials of drugs stored in the Pyxes machine at NHFMC were held in container packages with each individual vial sealed with tamper evident seals and caps.
From July 2020 through November 2020, Poteat opened container packages containing vials of injectable Hydromorphone that were stored in the Pyxes machine located in the CPPU at NHFMC. She then removed the vials from those container packages and opened the vials for the purpose of converting and consuming the Hydromorphone by injecting the drug into herself.
After removing and converting injectable Hydromorphone, Poteat injected saline solution into the vials so as to conceal her conversion of the drugs and replaced the lids of the vials with glue. Poteat then placed the tampered-with vials which were filled with saline solution into the opened container packages, closed and re-sealed the container packages, and then left those container packages in the locked and secured Pyxes machine -- knowing that CPPU nurses might administer the compromised and tampered-with vials of injectable Hydromorphone to surgical patients in the CPPU at NHFCMC, despite the fact that such vials did not contain the drug and were filled with potentially contaminated saline solution.
Poteat was ordered to pay a $3,000 fine and will face three years of supervised release in addition to her 4-1/2 year prison sentence.
This case was prosecuted by Assistant United States Attorney Frank J. Chut, Jr. The United States Food and Drug Administration investigated the case.
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North Carolina Man Pleads Guilty to Felony Charge for Actions During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON – A North Carolina man pleaded guilty today to a felony charge for his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His and others’ actions disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.
Matthew Mark Wood, 25, of Reidsville, North Carolina, pleaded guilty in the District of Columbia to a felony charge of obstruction of an official proceeding and five related misdemeanor offenses. According to court documents, on Jan. 2, 2021, three days before he traveled to Washington, Wood sent an iMessage to another individual in which he stated, “If they want to raid Congress, sign me up, I’ll be brave heart in that bitch!"
On Jan. 6, Wood illegally made his way to the West Plaza of the Capitol soon after the breach of a police line meant to secure the restricted grounds. Wood remained in the West Plaza for about an hour before climbing stairs to the Northwest Plaza. He was several feet behind those who broke out and climbed through the Capitol’s window next to the Senate Wing Door. He was the 10th person to enter through that window, getting inside at approximately 2:13 p.m.
Once inside, Wood and other rioters made their way to the hallway immediately outside the Senate Chamber. Once stopped in their advance by law enforcement there, Wood returned to the first floor and joined a growing group of rioters in the Capitol Crypt. At approximately 2:24 p.m., he sent an iMessage to a group chat, declaring, “We just broke through Capitol police, we are going to bust into the house chambers.”
Wood subsequently followed others through the Small House Rotunda, up a staircase, and into the House Speaker’s office suite. While in that area, he entered at least three offices or other sensitive spaces, including the Speaker’s conference room. He then moved to the Rotunda and other areas of the Capitol, removing the ropes from stanchions he passed, calling protesters to follow, and staying in the building despite clouds of chemical irritant. When the Metropolitan Police Department arrived to assist the Capitol Police in clearing rioters from the Rotunda, Wood and other rioters did not immediately leave. It was not until approximately 3:31 p.m. that Wood finally left the Capitol through the East Rotunda Door.
Wood was arrested on March 5, 2021, in Winston-Salem, North Carolina. He is to be sentenced on Sept. 23, 2022. He faces a statutory maximum of 20 years in prison and a fine of up to $250,000 on the obstruction charge and a total of 3 ½ years of additional time and additional fines for the five misdemeanor offenses. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The 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 Washington Field Office, which identified Wood as #71 on its seeking information photos, and the FBI’s Charlotte Field Office Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.
In the 16 months since Jan. 6, 2021, more than 800 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 250 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
Davidson County Man Sentenced to 170 Months in Prison for Sexual Exploitation of MinorsRead the Press Release
GREENSBORO – A North Carolina man was sentenced on May 19, 2022, to 170 months in prison, followed by a 15-year term of supervised release, for sexual exploitation of minors after a multi-state effort by federal and local agencies identified a user in North Carolina involved in the receipt and distribution of child pornography and solicitation of sexually explicit images from two minors.
According to court documents, Robert Hoyt Reece, 39, was identified by agents from the Federal Bureau of Investigation (FBI), Charlotte Division, after receiving information from local law enforcement in another state about an individual in Lexington, North Carolina possessing child pornography and communicating with minors across the country. The FBI later identified the individual as Reece and the Davidson County Sheriff’s Office (DSCO) executed a search warrant at Reece’s residence in April 2021 where they confiscated multiple devices containing images and videos of child pornography. Reece admitted to officers that he had used multiple devices and applications to access child pornography. As a result of the investigation, it was also determined he was communicating with two out-of-state minors inappropriately and soliciting sexually images from them.
He was charged in the Middle District of North Carolina in October 2021 with one count of coercion or enticement of a minor, two counts of sexual exploitation of children, one count of possession of child pornography, and two counts of sexual exploitation of minors. In January, 2022, Reece pled guilty to one count of receiving child pornography. In addition to his imprisonment and supervised release, Reece was ordered to pay $23,000 in restitution to the child pornography victims.
The Davidson County Sheriff’s Office and the Federal Bureau of Investigation assisted with the investigation. FBI offices throughout the country assisted in locating the victims and identifying Reece as the perpetrator.
This case was prosecuted by Assistant United States Attorneys Lindsey Freeman and Kennedy Gates. It was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. The initiative is led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and focuses on coordinating federal, state, and local resources to better identify and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. http://www.projectsafechildhood.gov/.
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U.S. Attorney Sandra Hairston Recognizes Law Enforcement Partners for National Police WeekRead the Press Release
GREENSBORO, NC - In honor of National Police Week, United States Attorney Sandra J. Hairston will recognize the service and sacrifice of federal, state, and local law enforcement. This year, the week is officially observed Wednesday, May 11 through Tuesday, May 17, 2022, and events are planned in the district from May 10 to May 19.
“This week, we gather to pay tribute to the law enforcement officers who sacrificed their lives in service to our country,” said Attorney General Garland. “We remember the courage with which they worked and lived. And we recommit ourselves to the mission to which they dedicated their lives. On behalf of a grateful Justice Department and a grateful nation, I extend my sincerest thanks and gratitude to the entire law enforcement community.”
“The law enforcement partners we have on the local, state, and federal levels in the Middle District of North Carolina are among the best in the nation,” said U.S. Attorney Sandra Hairston. “Every day, these men and women serve their communities with the utmost dignity and respect, often putting themselves in harm’s way for public safety. We thank them for their service this week and honor those who lost their lives in the line of duty while protecting others.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), 472 law enforcement officers died nationwide in the line of duty in 2021. Of that number, 319 succumbed to COVID-19. Five officers died in 2021 from injuries sustained in the line of duty in the Middle District of North Carolina.
Additionally, according to 2021 statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 73 law enforcement officers who died in the line of duty in 2021 were killed as a result of felonious acts, whereas 56 died in accidents. Deaths resulting from felonious acts increased in 2021, rising more than 58 percent from the previous year. In 2021, unprovoked attacks[1] were the cause of 24 deaths significantly outpacing all other line of duty deaths resulting from felony acts and reaching the highest annual total in over 30 years of reporting. Additional LEOKA statistics can be found on FBI’s Crime Data Explorer website for the LEOKA program.
The names of the 619 fallen officers added this year to the wall at the National Law Enforcement Officer Memorial were read on Friday, May 13, 2022, during a Candlelight Vigil in Washington, D.C. Those who wish to view the vigil online, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/TheNLEOMF. The schedule of National Police Week events is available on NLEOMF’s website.
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[1] An unprovoked attack is defined as an attack on an officer not prompted by official contact at the time of the incident between the officer and the offender. Source: Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program.
North Carolina Man Arrested for Assaulting Law Enforcement Officers During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON — A North Carolina man was arrested today for assaulting law enforcement officers during the breach of the U.S. Capitol on Jan. 6, 2021. His and others’ actions disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.
David Joseph Gietzen, 38, of Sanford, North Carolina, is charged in an indictment with a total of eight counts, including one charging him with assaulting, resisting, or impeding officers with a dangerous weapon, two charging him with assaulting resisting or impeding officers, and related offenses. The indictment was unsealed today in the District of Columbia. Gietzen was arrested in Sanford and is to make his initial appearance today in the Middle District of North Carolina.
According to the indictment, Gietzen was illegally on the restricted Capitol grounds on Jan. 6. He is accused of assaulting multiple law enforcement officers between 2:13 p.m. and 2:31 p.m. that day, using a pole in the last of the charged attacks.
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 is being investigated by the FBI’s Washington Field Office, which identified Gietzen as #217 in its seeking information photos, and the Raleigh Resident Agency of the FBI’s Charlotte Field Office. Valuable assistance was provided by the Metropolitan Police Department and the U.S. Capitol Police.
In the 16 months since Jan. 6, 2021, more than 800 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 250 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
An indictment or complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Durham Man Sentenced to 27 Months for Filing of False Tax ReturnsRead the Press Release
GREENSBORO, NC - Markeith Jamar Norman, 56, was sentenced on April 29, 2022, to 27 months in prison for aiding and assisting in the preparation and presentation of a false tax return. Sandra J. Hairston, United States Attorney for the Middle District of North Carolina, made the announcement.
According to court documents, Norman worked as a professional tax preparer at two tax companies from 2014 until 2019 wherein he made various false claims on behalf of his clients in order to increase tax refunds. Beginning in 2015, Norman prepared and electronically filed at least twenty-three false U.S. Individual Income Tax Returns and Income Tax Returns for Single and Joint Files with No Dependents tax returns. The returns contained false reports of education credits, Schedule C businesses, Form 1099 federal tax withholdings, and itemized deductions unbeknownst to his clients. Despite both of Norman’s former employers stating that preparers were not authorized to receive cash payments from clients, multiple clients told investigators that Norman requested payment in cash, sometimes up to $500, for tax return preparation. Upon receiving their tax returns, clients were instructed to deposit their checks and pay him in cash. Investigators also uncovered that, beginning in 2014, Norman failed to report any of his income earned as a tax preparer on self-prepared 1040 U.S. Individual Income Tax Returns to the Internal Revenue Service. In 2017 and 2018, Norman failed to file any tax returns at all.
Those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced today," said Donald “Trey” Eakins Special Agent in Charge of the Charlotte Field Office. "Today's sentencing again emphasizes that the Internal Revenue Service – Criminal Investigation will continue their aggressive pursuit of those who would attempt to defraud America's tax system."
“We are extremely grateful to the agents and agencies involved in this case and every case that secures the integrity of our tax system,” said US Attorney Hairston. “This case is another example of the serious consequences associated with filing false returns and it provides justice for those harmed by tax professionals seeking to take advantage of the system.”
In addition to his imprisonment, Norman will be required to pay $375,390 in restitution.
This case was prosecuted by Assistant U. S. Attorney Nicole R. Dupre. The Internal Revenue Service and the U.S. Department of Justice Tax Division were involved in the investigation of the case.
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Winston-Salem Man Sentenced to 25 Years for Conspiracy to Distribute MethamphetamineRead the Press Release
Greensboro, NC - Jose Mondujano-Hernandez, 25, was sentenced on April 27, 2022, to a total of 300 months in prison for conspiracy to distribute methamphetamine. Sandra J. Hairston, United States Attorney for the Middle District of North Carolina, made the announcement.
According to court documents, in September 2020, an undercover officer (UC) was introduced to an unknown person located in Mexico who began negotiating a sale of crystal methamphetamine. On September 28, 2020, the UC was contacted by another unknown individual to coordinate the drug transaction in Winston-Salem. Agents from the Drug Enforcement Administration and the Federal Bureau of Investigation in Greensboro conducted surveillance on the meeting location where the transaction occurred and was video recorded. Mondujano-Hernandez sold the UC one kilogram of suspected methamphetamine, and a laboratory test confirmed the substance to be methamphetamine. On October 13, 2020, and November 5, 2020, the UC made additional controlled drug purchases from Mondujano-Hernandez for three kilograms of methamphetamine. In the following weeks, the UC was involved in further transactions involving Mondujano-Hernandez and his co-defendants for additional purchases that totaled approximately 16 kilograms of methamphetamine. Mondujano-Hernandez and four other co-defendants were charged by Superseding Indictment with conspiracy to distribute 500 grams or more of methamphetamine in February 2021.
The Honorable Thomas D. Schroeder sentenced Mondujano-Hernandez to 300 months imprisonment. After imprisonment, Mondujano-Hernandez will be subject to supervised release for ten years.
This case was prosecuted by Assistant U. S. Attorney Terry M. Meinecke. The Federal Bureau of Investigation and the Drug Enforcement Administration were involved in the investigation of the case and were assisted by several local and state agencies.
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Greensboro Man Sentenced to 20 Years on Firearms Charges After Hostage Situation and Drug Trafficking ViolationsRead the Press Release
GREENSBORO – Matthew Leviticus Murphy, 32, was sentenced on April 15, 2022, to a total of 240 months in prison for possession of a firearm by a felon in two separate incidences in Greensboro in 2020 and 2021. Sandra J. Hairston, United States Attorney for the Middle District of North Carolina, made the announcement.
According to court documents, Murphy forced his way into a home in Greensboro brandishing a firearm early on the morning of November 21, 2020. Murphy pointed a firearm at multiple residents of the house. During the interaction, Murphy pointed a firearm at a three-year-old child among other members of the family and demanded that they pretend to know Murphy once the police arrived. Police then entered the home and began questioning Murphy and the hostages. One member of the family told police that Murphy had threatened to shoot them if they didn’t cooperate and police promptly arrested Murphy.
On the evening of January 21, 2021, Greensboro Police officers conducted a traffic stop involving a vehicle in which Murphy was the passenger. As they approached the vehicle, Murphy attempted to conceal a plastic bag containing white powder and hid a bag of the powder. Officers found two additional clear plastic bags containing a white powder, a firearm, and a large amount of cash in the vehicle. Laboratory testing confirmed that the powder contained fentanyl.
At the time of both offenses, Murphy had been previously convicted of felonious second-degree burglary charges and theft in 2006 which resulted in a term of imprisonment exceeding one year. Murphy was also convicted of assault with a deadly weapon and burglary charges again in 2012 and of malicious conduct by a prisoner in 2014, resulting in additional terms of imprisonment. Thus, at the time of the offenses, Murphy was legally barred from possessing a firearm due to his status as a felon.
The Honorable William L. Osteen, Jr., sentenced Murphy to two consecutive terms of imprisonment of 120 months each. After imprisonment, Murphy will be subject to supervised release for three years.
This case was prosecuted by Assistant U. S. Attorney Veronica Edmisten. The Greensboro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives were involved in the investigation of the case.
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Leader of North Carolina Chapter of Proud Boys Pleads Guilty to Conspiracy and Assault Charges in Jan. 6 Capitol BreachRead the Press Release
WASHINGTON – A leader of the Proud Boys pleaded guilty today to felony charges for his actions before and during the breach of the U.S. Capitol on Jan. 6, 2021. His and others’ actions disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.
Charles Donohoe, 34, of Kernersville, North Carolina, pleaded guilty to conspiracy to obstruct an official proceeding and assaulting, resisting or impeding officers. As part of the plea agreement, Donohoe has agreed to cooperate with the government’s ongoing investigation.
According to court documents, the Proud Boys describes itself as a “pro-Western fraternal organization for men who refuse to apologize for creating the modern world, aka Western Chauvinists.” Donohoe joined the Proud Boys in 2018 and became the president of his local Proud Boys chapter in North Carolina. As of Jan. 6, 2021, he was a fourth-degree member of the Proud Boys, the highest rank within the organization.
In December 2020, according to the court documents, Enrique Tarrio, then the Proud Boys national chairman, formed a new Proud Boys’ chapter known as the “Ministry of Self Defense,” which focused on the planning and execution of national rallies. The first objective of the Ministry of Self Defense was to plan for actions in relation to the Washington, D.C., rally on Jan. 6, 2021. Donohoe was a leader of this new chapter, which eventually grew to include at least 65 members.
At least as early as Jan. 4, 2021, Donohoe was aware that the Ministry of Self Defense’s leaders were discussing the possibility of storming the Capitol. Donohoe believed that storming the Capitol would achieve the group’s goal of stopping the government from carrying out the transfer of presidential power. Donohoe understood from discussions that the Proud Boys would pursue their objective through the use of force and violence.
On Jan. 6, 2021, Donohoe was part of a group of 100 or more Proud Boys who marched away from a rally near the Washington Monument towards the Capitol. Shortly after 12 p.m., the group was assembled two blocks west of the Capitol, and Donohoe understood that other Proud Boys leaders were searching for an opportunity to storm the Capitol. At approximately 1 p.m., the group arrived at the Capitol and began breaching the barriers surrounding the Capitol grounds. While in the West Plaza of the Capitol, Donohoe threw two water bottles at a line of law enforcement officers who were attempting to prevent the mob’s advance in the West Plaza at the Capitol building. As events continued, Donohoe joined with a crowd, including other Proud Boys, to push forward to advance up the concrete stairs toward the Capitol. The crowd overwhelmed law enforcement officers on the stairs, continued toward the Capitol, and ultimately entered the Capitol building after Donohoe’s co-defendant, Dominic Pezzola, allegedly broke open a window of the building.
Hours later, Donohoe posted messages to the Ministry of Self Defense Leadership Group celebrating the group’s actions that day.
Donohoe was arrested on March 11, 2021, and he has been detained since his arrest. He is among six defendants – including Tarrio and Pezzola – indicted in the District of Columbia on conspiracy and other charges; the others have pleaded not guilty. Donohoe faces up to 20 years in prison on the conspiracy charge and up to eight years in prison on the charge of assaulting, resisting or impeding officers. Both charges also carry potential financial penalties. No sentencing date was set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The 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 is being investigated by the FBI’s Washington and Charlotte Field Offices.
In the 15 months since Jan. 6, 2021, nearly 800 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 250 individuals charged with assaulting or impeding law enforcement. 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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U.S. Attorney Sandra J. Hairston Appointed to Serve on Attorney General Merrick B. Garland’s Advisory CommitteeRead the Press Release
WASHINGTON – Attorney General Merrick B. Garland today announced the appointment of 12 U.S. Attorneys to serve on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). Created in 1973, the AGAC advises the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys and elevates the voices of U.S. Attorneys in Department policies. The first meeting of the AGAC will take place later this spring.
The appointees include U.S. Attorney Damian Williams for the Southern District of New York; U.S. Attorney Cindy K. Chung for the Western District of Pennsylvania; U.S. Attorney Darcie McElwee for the District of Maine; U.S. Attorney Trini Ross for the Western District of New York; U.S. Attorney Sandra Hairston for the Middle District of North Carolina; U.S. Attorney Brandon Brown for the Western District of Louisiana; U.S. Attorney Dawn Ison for the Eastern District of Michigan; U.S. Attorney Gregory Harris for the Central District of Illinois; U.S. Attorney Andrew Luger for the District of Minnesota; U.S. Attorney Gary Restaino for the District of Arizona; U.S. Attorney Cole Finegan for the District of Colorado; and U.S. Attorney Matthew Graves for the District of Columbia. An appointee from a district within the jurisdiction of the Eleventh Circuit of the U.S. Court of Appeals will be announced at a later date, once the Senate has confirmed nominees.
U.S. Attorney Damian Williams will serve as the Chair of the AGAC, and U.S. Attorney Cindy Chung will serve as the Vice Chair.
“These United States Attorneys will represent the views of dedicated federal prosecutors across the country, and provide advice and insight into essential matters facing the Department,” said Attorney General Garland. “I look forward to working alongside them in carrying out the Department’s core priorities of upholding the rule of law, keeping our country safe, and protecting civil rights.”
“I am honored to be appointed to the AGAC,” said U.S. Attorney Hairston, “and I look forward to the opportunity to consult with Attorney General Garland and other Department of Justice officials on issues affecting the United States Attorney’s Offices and federal law enforcement.”
A brief bio on each appointee is below:
Damian Williams (Chair)
The Senate confirmed Damian Williams’ appointment as U.S. Attorney for the Southern District of New York in October 2021. Williams began his legal career as a law clerk to then-Judge Merrick Garland when he served in the U.S. Court of Appeals for the District of Columbia Circuit from 2007 to 2008. Williams then served as a law clerk for Justice John Paul Stevens of the U.S. Supreme Court from 2008 to 2009. From 2009 to 2012, he was a litigation associate at Paul, Weiss, Rifkind, Wharton & Garrison. From 2012 to 2021, he served as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the Southern District of New York. In the role, he served as a chief of the securities and commodities fraud task force from 2018 to 2021. He received his Bachelor of Arts in economics from Harvard University in 2002, a Master of Philosophy in international relations from Emmanuel College at the University of Cambridge in 2003, and a Juris Doctor from Yale Law School in 2007, where he was also an editor of the Yale Law Journal.
Cindy K. Chung (Vice Chair)
The Senate confirmed Cindy K. Chung’s appointment as U.S. Attorney for the Western District of Pennsylvania in November 2021. In 2002 and 2003, Chung served as a law clerk for Judge Myron H. Thompson in the Middle District of Alabama. She then joined the New York County District Attorney’s Office in 2003, serving as an assistant district attorney until 2007 and as investigation counsel in the Official Corruption Unit from 2007 to 2009. From 2009 to 2014, Chung served as a trial attorney in the U.S. Department of Justice Civil Rights Division. She later joined the U.S. Attorney’s Office for the Western District of Pennsylvania, serving as deputy chief of the major crimes division. From 2014 to 2021, she served as an Assistant U.S. Attorney. Chung earned a Bachelor of Arts from Yale University in 1997 and a Juris Doctor from Columbia Law School in 2002.
Darcie McElwee
The Senate confirmed Darcie McElwee’s appointment as U.S. Attorney for the District of Maine in October 2021. McElwee began her legal career as an assistant district attorney for the Penobscot and Piscataquis counties in Maine from 1998 to 2002. Between 2005 and 2008, McElwee was an adjunct professor of advanced trial advocacy at the University of Maine School of Law. From 2002 to 2021, she served as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the District of Maine. Since 2005, she has been the coordinator of Project Safe Neighborhoods. McElwee received her Bachelor of Arts from Bowdoin College in 1995 and her Juris Doctor from the University of Maine School of Law in 1998.
Trini Ross
The Senate confirmed Trini Ross’s appointment as U.S. Attorney for the Western District of New York in September 2021. Ross began her career as an appellate attorney for the New York Supreme Court. She was an associate at Hiscock & Barclay LLC before joining the Office of Professional Responsibility as assistant counsel. From 1995 to 2018, Ross served as an Assistant U.S. Attorney for the Western District of New York. She has also been an adjunct professor of law at Buffalo Law School. She has also served as director of the investigations for the National Science Foundation Office of Inspector General since 2018. Ross earned a Bachelor of Arts degree from the State University of New York at Fredonia in 1988, a Master of Arts from Rutgers University in 1990, and a Juris Doctor from the University at Buffalo Law School in 1992.
Sandra Hairston
The Senate confirmed Sandra Hairston as U.S. Attorney for the Middle District of North Carolina in November 2021. Hairston previously served as an assistant district attorney in Columbus County, North Carolina, from 1987 to 1989 and as a special assistant district attorney in Guilford County, North Carolina from 1989 to 1990. From 1994 to 1996, she served as Chief of the Criminal Division of the U.S. Attorney’s Office for the Eastern District of North Carolina before returning to the Middle District of North Carolina in 1996. She joined the U.S. Attorney’s Office for the Middle District of North Carolina in 1990 as an Assistant U.S. Attorney. Hairston previously held the position of First Assistant U.S. Attorney for the Middle District of North Carolina from 2014 to 2021. From March 1, 2021, until her Senate confirmation, she served as the Acting U.S. Attorney for the Middle District of North Carolina. Hairston received her Bachelor of Arts from the University of North Carolina at Charlotte in 1981 and her Juris Doctor from North Carolina Central University School of Law in 1987.
Brandon Brown
The Senate confirmed Brandon Brown as U.S. Attorney for the Western District of Louisiana in December 2021. From 2007 to 2012, Brown served as an assistant prosecuting attorney in the Ouachita Parish District Attorney’s Office. He was also an associate at Hammonds, Sills, Adkins & Guice LLP in Baton Rouge, Louisiana. Since 2012, he has served as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the Western District of Louisiana. Brown earned a Bachelor of Arts in 2002 and a Master of Business Administration in 2004 from Louisiana Tech University, followed by a Juris Doctor in 2007 from the Southern University Law Center.
Dawn Ison
The Senate confirmed Dawn Ison as U.S. Attorney for the Eastern District of Michigan in December 2021. In 1989 and 1990, Ison was a prehearing attorney for the Michigan Court of Appeals. In 2002, Ison began serving as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the Eastern District of Michigan. She also served as chief of the Drug Enforcement Task Force Unit. Ison earned a Bachelor of Arts from Spelman College and a Juris Doctor from the Wayne State University Law School.
Gregory Harris
The Senate confirmed Gregory Harris as U.S. Attorney for the Central District of Illinois in December 2021. Harris began his career as a lawyer for the Office of the State Appellate Defender in 1976 where he represented indigent criminal defendants on appeal. From 1979 to 1980, he served as legal counsel for the Illinois Governor’s Office of Manpower and
Human Development and later as a staff attorney for the Illinois Department of Commerce and Community Development. From 1980 to 1988, he served as an Assistant U.S. Attorney in the U.S Attorney’s Office for the Central District of Illinois. From 1988 to 2001, he was a lawyer for Giffin, Winning, Cohen & Bodewes in Springfield, Illinois. He later rejoined the Central District of Illinois in 2001, where he served as chief of the Criminal Division and Assistant U.S. Attorney. Harris was born in Washington, D.C. He earned a Bachelor of Arts degree from Howard University in 1971 and a Juris Doctor from the University of Illinois Chicago School of Law in 1976.
Andrew Luger
The Senate confirmed Andrew Luger as the U.S. Attorney for the District of Minnesota in March 2022. He previously served in that role during the Obama administration and briefly during the Trump administration from 2014 to 2017. Prior to his appointment, Luger was a partner in the Minneapolis office of Jones Day from 2017 – 2022. Luger has also served as an Assistant U.S. Attorney for the Eastern District of New York, from 1989 to 1992, and for the District of Minnesota from 1992 to 1995, where he prosecuted a wide variety of narcotics and violent crimes, as well as complex white collar frauds. In 1995, Luger joined the law firm of Greene Espel in Minneapolis, where he was a partner until 2014. Luger earned a Bachelor’s degree from Amherst College and a Juris Doctor from Georgetown University Law Center.
Gary Restaino
The Senate confirmed Gary Restaino as U.S. Attorney for the District of Arizona in November 2021. From 1991 to 1993, Restaino served in Paraguay with the Peace Corps. From 1996 to 1999, he provided legal services to seasonal farm workers as a lawyer with Community Legal Services. From 1999 to 2003, he served as a civil rights lawyer in the Arizona Attorney General's Office. He then served as a trial attorney in the Public Integrity Section of the U.S. Department of Justice’s Criminal Division. Restaino joined the U.S. Attorney's Office for the District of Arizona in 2003. He was nominated to serve as U.S. Attorney in October 2021. Restaino earned a Bachelor of Arts degree from Haverford College in 1990 and a Juris Doctor from the University of Virginia School of Law in 1996.
Cole Finegan
The Senate confirmed Cole Finegan as U.S. Attorney for the District of Colorado in November 2021. From 1991 to 1993, Finegan served both as Chief Legal Counsel and Director of Policy and Initiatives for Colorado Governor Roy Romer. From 1993 to 2003, Finegan was a partner for Brownstein Hyatt Farber Schreck’s Denver office. Finegan joined Hogan Lovells (then Hogan & Hartson) in 2007 as a partner. Finegan acted as an adviser to Governor Hickenlooper and U.S. Senator Michael Bennet. Finegan attended the University of Notre Dame from 1974 to 1978, earning a degree in English. Finegan earned a Juris Doctor from Georgetown University Law Center in 1986.
Matthew Graves
The Senate confirmed Matthew Graves as U.S. Attorney for the District of Columbia in October 2021. After graduating law school, Graves began his legal career as a law clerk for Judge Richard W. Roberts of the U.S. District Court for the District of Columbia. From 2002 to 2007, he was an associate at WilmerHale. From 2007 to 2016, Graves worked as an Assistant U.S. Attorney in the District of Columbia, where he served in the office’s
fraud and public corruption section, ultimately serving as the acting chief of the section. Since 2016, he has been a partner at DLA Piper. Graves earned a Bachelor of Arts degree from Washington and Lee University in 1998 and a Juris Doctor from Yale Law School in 2001.
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Attorney General Merrick B. Garland Appoints 12 Members to Advisory Committee of U.S. AttorneysRead the Press Release
WASHINGTON – Attorney General Merrick B. Garland today announced the appointment of 12 U.S. Attorneys to serve on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). Created in 1973, the AGAC advises the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys and elevates the voices of U.S. Attorneys in Department policies. The first meeting of the AGAC will take place later this spring.
The appointees include U.S. Attorney Damian Williams for the Southern District of New York; U.S. Attorney Cindy K. Chung for the Western District of Pennsylvania; U.S. Attorney Darcie McElwee for the District of Maine; U.S. Attorney Trini Ross for the Western District of New York; U.S. Attorney Sandra Hairston for the Middle District of North Carolina; U.S. Attorney Brandon Brown for the Western District of Louisiana; U.S. Attorney Dawn Ison for the Eastern District of Michigan; U.S. Attorney Gregory Harris for the Central District of Illinois; U.S. Attorney Andrew Luger for the District of Minnesota; U.S. Attorney Gary Restaino for the District of Arizona; U.S. Attorney Cole Finegan for the District of Colorado; and U.S. Attorney Matthew Graves for the District of Columbia. An appointee from a district within the jurisdiction of the Eleventh Circuit of the U.S. Court of Appeals will be announced at a later date, once the Senate has confirmed nominees.
U.S. Attorney Damian Williams will serve as the Chair of the AGAC, and U.S. Attorney Cindy Chung will serve as the Vice Chair.
“These United States Attorneys will represent the views of dedicated federal prosecutors across the country, and provide advice and insight into essential matters facing the Department,” said Attorney General Garland. “I look forward to working alongside them in carrying out the Department’s core priorities of upholding the rule of law, keeping our country safe, and protecting civil rights.”
A brief bio on each appointee is below:
Damian Williams (Chair)
The Senate confirmed Damian Williams’ appointment as U.S. Attorney for the Southern District of New York in October 2021. Williams began his legal career as a law clerk to then-Judge Merrick Garland when he served in the U.S. Court of Appeals for the District of Columbia Circuit from 2007 to 2008. Williams then served as a law clerk for Justice John Paul Stevens of the U.S. Supreme Court from 2008 to 2009. From 2009 to 2012, he was a litigation associate at Paul, Weiss, Rifkind, Wharton & Garrison. From 2012 to 2021, he served as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the Southern District of New York. In the role, he served as a chief of the securities and commodities fraud task force from 2018 to 2021. He received his Bachelor of Arts in economics from Harvard University in 2002, a Master of Philosophy in international relations from Emmanuel College at the University of Cambridge in 2003, and a Juris Doctor from Yale Law School in 2007, where he was also an editor of the Yale Law Journal.
Cindy K. Chung (Vice Chair)
The Senate confirmed Cindy K. Chung’s appointment as U.S. Attorney for the Western District of Pennsylvania in November 2021. In 2002 and 2003, Chung served as a law clerk for Judge Myron H. Thompson in the Middle District of Alabama. She then joined the New York County District Attorney’s Office in 2003, serving as an assistant district attorney until 2007 and as investigation counsel in the Official Corruption Unit from 2007 to 2009. From 2009 to 2014, Chung served as a trial attorney in the U.S. Department of Justice Civil Rights Division. She later joined the U.S. Attorney’s Office for the Western District of Pennsylvania, serving as deputy chief of the major crimes division. From 2014 to 2021, she served as an Assistant U.S. Attorney. Chung earned a Bachelor of Arts from Yale University in 1997 and a Juris Doctor from Columbia Law School in 2002.
Darcie McElwee
The Senate confirmed Darcie McElwee’s appointment as U.S. Attorney for the District of Maine in October 2021. McElwee began her legal career as an assistant district attorney for the Penobscot and Piscataquis counties in Maine from 1998 to 2002. Between 2005 and 2008, McElwee was an adjunct professor of advanced trial advocacy at the University of Maine School of Law. From 2002 to 2021, she served as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the District of Maine. Since 2005, she has been the coordinator of Project Safe Neighborhoods. McElwee received her Bachelor of Arts from Bowdoin College in 1995 and her Juris Doctor from the University of Maine School of Law in 1998.
Trini Ross
The Senate confirmed Trini Ross’s appointment as U.S. Attorney for the Western District of New York in September 2021. Ross began her career as an appellate attorney for the New York Supreme Court. She was an associate at Hiscock & Barclay LLC before joining the Office of Professional Responsibility as assistant counsel. From 1995 to 2018, Ross served as an Assistant U.S. Attorney for the Western District of New York. She has also been an adjunct professor of law at Buffalo Law School. She has also served as director of the investigations for the National Science Foundation Office of Inspector General since 2018. Ross earned a Bachelor of Arts degree from the State University of New York at Fredonia in 1988, a Master of Arts from Rutgers University in 1990, and a Juris Doctor from the University at Buffalo Law School in 1992.
Sandra Hairston
The Senate confirmed Sandra Hairston as U.S. Attorney for the Middle District of North Carolina in November 2021. Hairston previously served as an assistant district attorney in Columbus County, North Carolina, from 1987 to 1989 and as a special assistant district attorney in Guilford County, North Carolina from 1989 to 1990. From 1994 to 1996, she served as Chief of the Criminal Division of the U.S. Attorney’s Office for the Eastern District of North Carolina before returning to the Middle District of North Carolina in 1996. She joined the U.S. Attorney’s Office for the Middle District of North Carolina in 1990 as an Assistant U.S. Attorney. Hairston previously held the position of First Assistant U.S. Attorney for the Middle District of North Carolina from 2014 to 2021. From March 1, 2021, until her Senate confirmation, she served as the Acting U.S. Attorney for the Middle District of North Carolina. Hairston received her Bachelor of Arts from the University of North Carolina at Charlotte in 1981 and her Juris Doctor from North Carolina Central University School of Law in 1987.
Brandon Brown
The Senate confirmed Brandon Brown as U.S. Attorney for the Western District of Louisiana in December 2021. From 2007 to 2012, Brown served as an assistant prosecuting attorney in the Ouachita Parish District Attorney’s Office. He was also an associate at Hammonds, Sills, Adkins & Guice LLP in Baton Rouge, Louisiana. Since 2012, he has served as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the Western District of Louisiana. Brown earned a Bachelor of Arts in 2002 and a Master of Business Administration in 2004 from Louisiana Tech University, followed by a Juris Doctor in 2007 from the Southern University Law Center.
Dawn Ison
The Senate confirmed Dawn Ison as U.S. Attorney for the Eastern District of Michigan in December 2021. In 1989 and 1990, Ison was a prehearing attorney for the Michigan Court of Appeals. In 2002, Ison began serving as an Assistant U.S. Attorney in the U.S. Attorney’s Office for the Eastern District of Michigan. She also served as chief of the Drug Enforcement Task Force Unit. Ison earned a Bachelor of Arts from Spelman College and a Juris Doctor from the Wayne State University Law School.
Gregory Harris
The Senate confirmed Gregory Harris as U.S. Attorney for the Central District of Illinois in December 2021. Harris began his career as a lawyer for the Office of the State Appellate Defender in 1976 where he represented indigent criminal defendants on appeal. From 1979 to 1980, he served as legal counsel for the Illinois Governor’s Office of Manpower and Human Development and later as a staff attorney for the Illinois Department of Commerce and Community Development. From 1980 to 1988, he served as an Assistant U.S. Attorney in the U.S Attorney’s Office for the Central District of Illinois. From 1988 to 2001, he was a lawyer for Giffin, Winning, Cohen & Bodewes in Springfield, Illinois. He later rejoined the Central District of Illinois in 2001, where he served as chief of the Criminal Division and Assistant U.S. Attorney. Harris was born in Washington, D.C. He earned a Bachelor of Arts degree from Howard University in 1971 and a Juris Doctor from the University of Illinois Chicago School of Law in 1976.
Andrew Luger
The Senate confirmed Andrew Luger as the U.S. Attorney for the District of Minnesota in March 2022. He previously served in that role during the Obama administration and briefly during the Trump administration from 2014 to 2017. Prior to his appointment, Luger was a partner in the Minneapolis office of Jones Day from 2017 – 2022. Luger has also served as an Assistant U.S. Attorney for the Eastern District of New York, from 1989 to 1992, and for the District of Minnesota from 1992 to 1995, where he prosecuted a wide variety of narcotics and violent crimes, as well as complex white collar frauds. In 1995, Luger joined the law firm of Greene Espel in Minneapolis, where he was a partner until 2014. Luger earned a Bachelor’s degree from Amherst College and a Juris Doctor from Georgetown University Law Center.
Gary Restaino
The Senate confirmed Gary Restaino as U.S. Attorney for the District of Arizona in November 2021. From 1991 to 1993, Restaino served in Paraguay with the Peace Corps. From 1996 to 1999, he provided legal services to seasonal farm workers as a lawyer with Community Legal Services. From 1999 to 2003, he served as a civil rights lawyer in the Arizona Attorney General's Office. He then served as a trial attorney in the Public Integrity Section of the U.S. Department of Justice’s Criminal Division. Restaino joined the U.S. Attorney's Office for the District of Arizona in 2003. He was nominated to serve as U.S. Attorney in October 2021. Restaino earned a Bachelor of Arts degree from Haverford College in 1990 and a Juris Doctor from the University of Virginia School of Law in 1996.
Cole Finegan
The Senate confirmed Cole Finegan as U.S. Attorney for the District of Colorado in November 2021. From 1991 to 1993, Finegan served both as Chief Legal Counsel and Director of Policy and Initiatives for Colorado Governor Roy Romer. From 1993 to 2003, Finegan was a partner for Brownstein Hyatt Farber Schreck’s Denver office. Finegan joined Hogan Lovells (then Hogan & Hartson) in 2007 as a partner. Finegan acted as an adviser to Governor Hickenlooper and U.S. Senator Michael Bennet. Finegan attended the University of Notre Dame from 1974 to 1978, earning a degree in English. Finegan earned a Juris Doctor from Georgetown University Law Center in 1986.
Matthew Graves
The Senate confirmed Matthew Graves as U.S. Attorney for the District of Columbia in October 2021. After graduating law school, Graves began his legal career as a law clerk for Judge Richard W. Roberts of the U.S. District Court for the District of Columbia. From 2002 to 2007, he was an associate at WilmerHale. From 2007 to 2016, Graves worked as an Assistant U.S. Attorney in the District of Columbia, where he served in the office’s fraud and public corruption section, ultimately serving as the acting chief of the section. Since 2016, he has been a partner at DLA Piper. Graves earned a Bachelor of Arts degree from Washington and Lee University in 1998 and a Juris Doctor from Yale Law School in 2001.
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Former State Highway Patrol Officer Pleads Guilty to Selling Firearms Without a LicenseRead the Press Release
GREENSBORO, N.C. - A Browns Summit man pleaded guilty today to unlawfully transporting and dealing in firearms.
Timothy Jay Norman, age 47, pleaded guilty to dealing in firearms without a license, a violation of Title 18, United States Code, Sections 922(a)(1)(A), 923(a), and 924(a)(1)(D).
According to court-filed documents, beginning in January 2021, the Federal Bureau of Investigation (FBI) learned that Norman was selling firearms to various persons, including a convicted felon, while employed as a North Carolina State Highway Patrol (NCSHP) trooper. During the investigation, the FBI learned that Norman held out for sale, using the convicted felon as a “middleman,” various firearms, which included decommissioned NCSHP service weapons: Sig Sauer P226 .357 semi-automatic pistols; Arma Lite, AR-15 5.56mm semi-automatic rifles, and Beretta, Model 1201FP, 12-gauge shotguns. Thereafter, law enforcement agencies conducted three successful controlled purchase operations.
Specifically, on or about May 12, 2021, law enforcement, using a confidential human source, purchased a decommissioned Sig Sauer P226 .357 semi-automatic pistol, with the NCSHP badge engraved on top of the slide, in a case with two magazines, for $1,600 from Norman. On or about June 8, 2021, agencies, using a source, purchased a Beretta 12-gauge shotgun and an Arma Lite AR-15 semi-automatic rifle, one magazine, one soft black case, and one 50-round drum magazine from Norman at his home in Browns Summit, for $3,200. Finally, on or about June 24, 2021, law enforcement conducted a third successful controlled firearms evidence purchase from Norman, wherein Norman sold a NCSHP Sig Sauer P226 .357 semi-automatic pistol from his patrol car to a source at a closed gas station. Norman received $2,000 in FBI case funds in exchange for the decommissioned weapon. As to all of these firearms, records from the Federal Firearms Licensee (“the FFL”) where Norman purchased them establish that Norman made a significant profit as a result of the various transactions. The records also showed that Norman had purchased thirty-six firearms from the FFL since January 1, 2021.
On July 7, 2021, investigating agencies executed a search warrant on Norman’s home and seized thousands of rounds of ammunition and over fifty firearms. In Norman’s patrol car, they found two more firearms (neither of which was NCSHP-issued), including one AR-15 rifle that Norman purchased from the FFL earlier that year. There was also an envelope with over $2,000 in cash, which included FBI buy money from one of the controlled buy operations referenced above.
Sentencing is scheduled to take place on June 2, 2022, at 9:30 am in Greensboro Courtroom Number Three before the Honorable Catherine C. Eagles. At sentencing, Norman faces a maximum sentence of five years in prison, a period of supervised release of up to three years, and monetary penalties.
Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina, made the announcement. Agents with the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, North Carolina State Bureau of Investigation, and North Carolina State Highway Patrol-Internal Affairs Division investigated the case. The case is being prosecuted by Assistant U.S. Attorneys JoAnna G. McFadden and John M. Alsup.
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Red Springs Man Sentenced to 25 Years for Money Laundering and Drug TraffickingRead the Press Release
Derek McNeill Washington, 31, was sentenced on February 24, 2022, to 300 months in prison for conspiracy to distribute methamphetamine and money laundering, announced United States Attorney Sandra J. Hairston.
Washington was indicted as part of a sixteen-count indictment in May 2021 alongside ten co-defendants for various drug trafficking, firearms, money laundering, and conspiracy charges in Rowan County. Washington was ordered to forfeit various firearms to authorities and will face five years of supervised release in addition to his 25-year prison sentence.
This case was prosecuted by Assistant United States Attorney Terry M. Meinecke. Homeland Security Investigations-Charlotte and the Rowan County Sheriff’s Office investigated the case.
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Three Men Sentenced for $2.7 Million COVID-19 Relief Fraud SchemeRead the Press Release
Three men were sentenced yesterday in the Middle District of North Carolina for fraudulently seeking over $2.7 million in Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDLs) guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act.
Joseph Marsell Cartlidge, 30, of Greensboro, North Carolina, was sentenced to 72 months in prison; David Christopher Redfern, 32, of Trinity, North Carolina, was sentenced to 60 months in prison; and Eric Alexander McMiller, 30, of Chicago, Illinois, was sentenced to 66 months in prison. Each defendant was also ordered to pay $498,657 in restitution.
According to court documents, Cartlidge, Redfern and McMiller joined a scheme led by James Stote, who with others, recruited the defendants to apply for fraudulent PPP loans for registered businesses, with the understanding and agreement they would provide a portion of the PPP loan proceeds to their recruiter. Between May and June 2020, the defendants submitted fraudulent PPP loan applications misrepresenting the number of employees and the average monthly payroll expenses of the defendants’ various businesses. The defendants submitted false tax and bank records in support of their loan applications. The defendants also independently applied for fraudulent EIDLs and misrepresented the number of employees, gross revenues, and costs of goods sold for each business. In total, the defendants sought over $2.7 million in PPP loans and EIDL funds. The defendants then used the loan proceeds for their own personal benefits, including for luxury purchases and cash withdrawals.
Stote pleaded guilty on Dec. 15, 2021, to conspiracy to commit wire fraud in the Northern District of Ohio.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Sandra J. Hairston of the Middle District of North Carolina; Acting Special Agent in Charge Mona Passmore of the IRS-Criminal Investigation (IRS-CI) Charlotte Field Office; Special Agent in Charge Kyle Myles of the FDIC-OIG Atlanta Region; Special Agent in Charge Mark Morini of the U.S. Treasury Inspector General for Tax Administration (TIGTA) Southeast Field Division; and Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General (SBA-OIG) Eastern Region made the announcement.
TIGTA, FDIC-OIG, and IRS-CI investigated the case. The Justice Department thanks SBA-OIG for their support and assistance.
Trial Attorneys Jennifer Bilinkas and Jessee Alexander-Hoeppner of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Nicole Dupre for the Middle District of North Carolina and Meredith Ruggles, formerly of the U.S. Attorney’s Office for the Middle District of North Carolina, prosecuted the case.
In May 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 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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Guilford County Man Sentenced for Firearm and Drug Trafficking ChargesRead the Press Release
GREENSBORO - Arthur Alexander McQueen, Jr., also known as “Tubb”, 36, was sentenced on February 9, 2022, to 292 months in prison for possession with intent to distribute fentanyl and to 120 months in prison for felon in possession of a firearm to run concurrently with his conviction for the drug trafficking charge. Sandra J. Hairston, United States Attorney for the Middle District of North Carolina, made the announcement.
According to court documents, Homeland Security Investigations (HSI) Charlotte, along with the Albemarle Police Department and the Davie County Sheriff’s Office conducted a controlled drug purchase on May 20, 2021 between McQueen and a confidential informant (CI). The CI contacted McQueen and arranged to purchase 500 grams of fentanyl for $25,000 at a location in Forsyth County. McQueen was surveilled leaving a residence in Guilford County to meet the CI in Forsyth County. After the transaction, officers confiscated the suspected fentanyl. Laboratory tests conducted by the Department of Homeland Security U.S. Customs and Border Patrol confirmed that the contents were 525.1 grams of a fentanyl.
On June 7, 2021, investigators obtained a search warrant for McQueen’s Guilford County residence. The warrant was executed on June 8, 2021 and officers seized a stolen FN Herstal 5.7 caliber handgun with a large capacity magazine, a large quantity of U.S. currency, various drug paraphernalia consistent with drug distribution, several bags of suspected fentanyl, and a bag containing suspected crack cocaine. Later laboratory testing confirmed that these suspected controlled substances amounted to 4.109 kilograms of fentanyl and 26.76 grams of cocaine base (crack cocaine). McQueen was found in the master bedroom trying to dispose of fentanyl in the toilet and bathtub and was arrested. Following his arrest, McQueen consented to an interview and made incriminating statements to investigators regarding his distribution of controlled substances and his purchase of the firearm.
At the time of the offenses, McQueen had previously been convicted of multiple felony offenses related to drug distribution in Forsyth County, North Carolina. Therefore, McQueen knew he was a convicted felon and was barred from possessing a firearm.
“Thankfully, this trafficker’s poison was not able to reach the streets and destroy countless lives,” said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “Thanks to the outstanding work of our special agents and officers with the Albemarle Police Department, Davie County Sheriff’s Office and federal prosecutors, we have ensured that McQueen is being held fully accountable.”
“The results of this case will have a major impact on the community and ATF was proud to be a part of this collaborative effort,” said ATF Special Agent in Charge Vince Pallozzi. “Removing these dangerous, repeat offenders is a critical step towards improving public safety throughout the area.”
This case was prosecuted by Assistant U. S. Attorney Craig M. Principe. Homeland Security Investigations Charlotte Division, Homeland Security Investigation Southeast Regional Special Response Team, the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives Charlotte Division, Albemarle Police Department, Davie County Sheriff’s Office, Forsyth County Drug Task Force, and Guilford County SWAT were involved in the investigation of the case.
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North Carolina Pharmacy Agrees to Pay $100,000 for Filling Illegal Controlled Substances PrescriptionsRead the Press Release
Durham, N.C. – Aspirar Pharmacy, LLC and Aspirar Pharmacy of Durham, LLC (collectively Aspirar Pharmacy), located in Cary and Durham, respectively, have agreed to pay the United States $100,000 to resolve allegations that they violated the Controlled Substances Act from 2017-2018 by filling prescriptions for a physician who lacked a valid state license.
The allegations involved physician Sharon Halliday, who obtained a faculty limited license in connection with her work at Duke University from the North Carolina Medical Board. A faculty limited license is intended to allow medical schools in North Carolina to benefit from expertise or specialized skills of physicians who are not otherwise eligible for full licensure in North Carolina. The faculty limited license only allows physicians holding such license to practice to the extent authorized by its sponsoring university.
The United States alleges that while Dr. Halliday possessed the faculty limited license, she prescribed controlled substances outside the scope permitted by Duke University. Aspirar Pharmacy, at both of its locations, filled these invalid prescriptions for Dr. Halliday. The allegations include that Aspirar Pharmacy failed to confirm the validity of Dr. Halliday’s license, thereby not fulfilling its corresponding responsibility under the Controlled Substances Act.
“An essential part of combatting the opioid epidemic is ensuring that pharmacies are held to the same standard as prescribers,” said Sandra J. Hairston, United States Attorney for the Middle District of North Carolina. “Pharmacies cannot simply put their head in the sand when filling prescriptions and work under the assumption that the prescriber complied with their legal obligations.”
“The mission of DEA’s Office of Diversion Control is to prevent, detect and investigate the diversion of controlled pharmaceuticals,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “In this case, DEA Diversion investigators did an outstanding job of uncovering the reckless actions of Aspirar Pharmacy in filling prescriptions from a physician operating outside the scope of her limited license.
The DEA and the U.S. Attorney’s Office are committed to making sure healthcare providers are abiding by its mandates.”
In addition to the civil penalty payment, Aspirar Pharmacy has entered into a Memorandum of Agreement (MOA) with the U.S. Drug Enforcement Administration. Under the terms of the MOA, Aspirar Pharmacy has agreed to discontinue filling any prescriptions for Rapha Healthcare Services, LLC, the practice that Dr. Halliday owns and operates.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Middle District of North Carolina and the U.S. Drug Enforcement Administration. Assistant United States Attorney Rebecca Mayer investigated the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Chapel Hill Man Sentenced to More Than 10 Years Imprisonment for Elder Fraud Home Repair SchemeRead the Press Release
Greensboro, N.C. – Sandra J. Hairston, United States Attorney for the Middle District of North Carolina, announced today that JORGE ALBERTO GARCIA, also known as “Alberto Garcia” and “Roberto Garcia,” was sentenced today in federal court for fraud and tax offenses.
GARCIA, age 41, had pled guilty on November 22, 2021 to one count of conspiracy to commit wire fraud, that is, a scheme and artifice to defraud and to obtain money and property by means of materially false and fraudulent pretenses, representations and promises, in a home repair scheme, as well as two counts of failure to file income tax returns.
GARCIA was sentenced by United States District Judge William L. Osteen, Jr., in Greensboro. GARCIA was sentenced to 121 months in prison as to Count One and 12 months in prison as to Counts Eleven and Twelve, to run concurrently with one another. He was sentenced to 3 years of supervised release as to Count One and one year of supervised release as to Counts Eleven and Twelve, also to run concurrently with another. He was ordered to pay $4,043,397.52 in restitution.
“The lengthy sentence in this case reflects the depravity of the scheme,” said U.S. Attorney Hairston. “This prosecution sends a message to would-be fraudsters: fraud, especially fraud that targets the vulnerable elderly, is a top priority of federal law enforcement in this district, and an offense that carries substantial penalties.”
“The victims in this case trusted Jorge Garcia, but unfortunately they were manipulated and deceived. Garcia ripped off hundreds of elderly victims to fill his own pockets. Now he will pay for his crimes serving a federal prison sentence where he can't swindle anyone else,” said Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina.
“Illegal activity involving innocent taxpayers has brought financial ruin to many Americans,” stated Donald “Trey” Eakins, IRS-CI Special Agent in Charge. “IRS Criminal Investigation is committed to using our forensic accounting skills to help unravel complex fraud and money laundering schemes. We are proud to work with our law enforcement partners to investigate and prosecute individuals who attempt to enrich themselves by fraudulent means, and to help put a stop to this and other types of white collar crime."
According to court documents, from on or about September 2015 to and including April 2020, GARCIA approached elderly, retired individuals at their private residences in Durham, Orange, and Chatham Counties, offering home improvement services using the business names “J&J Home Improvement” and “JH Home Improvements, Inc.” Many of these victims had physical or mental infirmities. GARCIA—who never had a state general contractor’s license—would offer to perform home improvement projects and these elderly individuals would, in turn, pay him prior to the completion of any construction work via personal checks, credit cards, or withdrawals from investment accounts. GARCIA would often direct that these individuals leave the “to” line of the check blank (which would later be completed in the name of his wife), or issue the check directly to his wife, who, in turn, deposited the checks into personal accounts in her name or that of her business, La Cacerola. GARCIA’s wife would then withdraw the money in cash and/or issue a cashier’s check made out to GARCIA. GARCIA and his wife would also take the checks to the elderly individual’s bank or their bank and cash the checks without depositing the funds into their bank accounts.
Filed documents further state GARCIA would develop personal relationships with these elderly individuals, calling them “Momma” and “Poppa,” and encourage them to solicit their neighbors to engage his services in home improvement projects for their residences, as well. GARCIA also solicited loans from some of the elderly individuals for whom he had already contracted to perform home improvement projects, separate and apart from those projects. In at least one instance, he received a check from a victim for such a loan and returned to that victim’s home later that same day to request the loan again. The victim, not remembering that he had written the first check, issued yet another check for the same amount to GARCIA.
However, GARCIA would not complete the contracted home improvement projects, nor would he repay any loans in full. When the contracting individual, a concerned relative of that person, or a local law enforcement officer confronted GARCIA about the payments, GARCIA would respond in the following ways: a) GARCIA would promise to send workers to complete the project but never fully complete the project; b) GARCIA or his wife would return a small percentage of the monies paid for the project; and/or c) GARCIA or his wife would write a personal check to the contracting individual that would be returned by the issuing bank as lacking sufficient funds. On more than one instance, GARCIA urged the victim not to contact the authorities about the unfinished work.
Review of records from bank accounts known to be controlled by GARCIA and/or his wife for the time period spanning May 2014 through November 2019 indicates that, as a result of the above-described scheme to defraud, GARCIA obtained a total exceeding $3 million dollars belonging to multiple victims.
Further, as reflected in the factual basis filed in support of GARCIA’s guilty plea, GARCIA and his wife have filed no federal income taxes since 2007, either personally or for their respective businesses. For the tax years 2014, 2015, 2016, 2017, and 2018, GARCIA and his wife had a joint income exceeding $3 million dollars. In calendar years 2017 and 2018, GARCIA had and received gross income exceeding the amount required to file an income tax return with the Internal Revenue Service; GARCIA knew this and willfully failed to file a return.
The case was investigated by the Federal Bureau of Investigation (in coordination with the Durham Police Department, Chatham County Sheriff’s Office, Chapel Hill Police Department, Carrboro Police Department, and Cary Police Department) and the Internal Revenue Service – Criminal Investigations. The case was prosecuted by Assistant United States Attorneys JoAnna G. McFadden and Ashley E. Waid.
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Operation False Haven: Convicted Child Molester Found Guilty of Naturalization FraudRead the Press Release
Greensboro, N.C. – Today in federal court, Vyacheslav Fyodorovitch Rizkhov, age 44, a naturalized citizen of the United States, born in Azerbaijan and residing in Union County, was found guilty of unlawful procurement of naturalization in violation of Title 18, United States Code, Section1425(a). The verdict was announced by Senior United States District Judge N. Carlton Tilley, Jr., following a bench trial.
According to court records, on September 17, 2019, Rizkhov fraudulently obtained U.S. citizenship by making materially false statements under oath regarding his naturalization application. In response to the question, “Have you ever committed, assisted in committing, or attempted to commit, a crime or offense for which you were not arrested?” Rizkhov answered, “No.” However, on March 6, 2020, in the Superior Court of North Carolina in Cabarrus County, Rizkhov was convicted of sexual battery of a physically helpless person and two counts of indecent liberties with a child. Rizkhov was sentenced to a suspended term of imprisonment of between 16 and 29 months and ordered to register as a sex offender. According to court records, all three victims were Rizkhov’s biological children whom he molested over a period of years beginning at least as early as July of 2017. Rizkhov was not arrested until after he was naturalized, thus immigration officials were unaware of his crimes.
Sentencing is set for June 30, 2022, in Greensboro. Rizkhov is subject to up to ten years imprisonment, a period of supervised release, and a fine. Moreover, he is subject to mandatory denaturalization.
Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina, made the announcement. Agents with ICE’s Enforcement and Removal Operations assigned to the Document and Benefit Fraud Task Force investigated the case as part of Operation False Haven, an ongoing initiative purpose-built to aggressively target child molesters and other egregious felons who fraudulently obtained U.S. citizenship. The case was prosecuted by Assistant U.S. Attorney Frank J. Chut.
A copy of this press release will be posted on our website. Related court documents and information can be found on the website of the U.S. District Court for the Middle District of North Carolina or on PACER by searching for Case No. 1:21-cr-00128-1.
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North Carolina Return Preparers Plead Guilty to Conspiring to Defraud the IRSRead the Press Release
Greensboro, N.C. – Two Durham, North Carolina, tax preparers have pleaded guilty to conspiring to defraud the United States in connection with a scheme that involved preparing and filing false tax returns.
According to court documents, Whitney Danielle Sales owned and operated Tax Time Solutions, LLC, a tax preparation business in Durham, North Carolina from 2014 to 2018. During that period, Sales, and another return preparer, Janelle Marie Corley, prepared fraudulent returns for clients. Returns prepared by the conspirators claimed false education credits or manipulated the clients’ income to qualify for larger earned income tax credits. In addition to their preparation of false client returns, Sales and Corley also filed false personal income tax returns. Sales and Corley intended to cause a tax loss of over $1.5 million.
Sales pleaded guilty to Count One of the Indictment before Senior United States District Court Judge N. Carlton Tilley, Jr., on January 5, 2022. Corley pleaded guilty to the same count before Judge Tilley on January 13, 2022.
Sales is scheduled to be sentenced on May 19, 2022, and Corley is scheduled to be sentenced on May 26, 2022. Sales and Corley each face a maximum sentence of five years in prison for the conspiracy, as well as a period of supervised release, restitution, and monetary penalties.
U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation is investigating the case. Assistant U.S. Attorney Ashley Waid of the Middle District of North Carolina is prosecuting the case.
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Greensboro Man Who Barricaded Himself and Fired on Law Enforcement Sentenced to 46 Years in Federal PrisonRead the Press Release
GREENSBORO, N.C. - A Greensboro man was sentenced on January 5, 2022, in federal court in Greensboro for knowingly possessing with intent to distribute marihuana, possessing firearms in furtherance of that offense, possessing firearms after a previous felony conviction, and possessing body armor after having been convicted of a crime of violence, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
RANDALL GRAY STONEMAN, age 52, was convicted at trial of the above referenced offenses on August 24, 2021. STONEMAN was acquitted of a charge related to maintaining drug-involved premises. Testimony at trial established that STONEMAN barricaded himself in a residence on Boxer Lane in Greensboro in the early morning hours of April 29, 2020. Armed with two Remington 12-gauge shotguns, a Mossberg 12-gauge shotgun, a Colt .223 caliber semiautomatic rifle, ammunition, and wearing a ballistic vest, STONEMAN engaged in an hours’ long standoff with law enforcement officers, firing at them intermittently over that time-period. GCSO Deputies and GPD Detectives ultimately recovered from the home, after deploying devices causing STONEMAN to surrender, four boxes of ammunition, 58 additional live rounds, and 36 spent rounds. Also recovered was approximately 106 grams of marihuana.
United States District Judge William L. Osteen, Jr., sentenced STONEMAN to a total of 552 months in federal prison. In addition to the prison time, STONEMAN was ordered to serve concurrent two-year, three-year, and five-year terms of supervised release after service of sentence and to pay a special assessment of $400.00.
The case was investigated by the Guilford County Sheriff’s Office, the Greensboro Police Department, and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorneys Veronica L. Edmisten and Clifton T. Barrett.
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North Carolina Business Owner Pleads Guilty to Filing False Tax ReturnRead the Press Release
A North Carolina man pleaded guilty yesterday to filing a false tax return.
According to court documents and statements made in court, Steve Sloan, 64, owned and operated Total Lawn and Landscape Pros LLC (Total Lawn), which provided lawn care services in Greensboro, Chapel Hill, and nearby areas. From 2014 to 2018, Sloan filed false returns with the IRS reporting each year only a portion of the profits actually earned by Total Lawn. For example, on his 2017 tax return Sloan reported total receipts of less than $200,000. In reality, the company’s receipts that year were $464,650. In all, Sloan caused a tax loss to the IRS of approximately $318,735.
Sloan is scheduled to be sentenced on June 21, 2022, and faces a maximum sentence of three years in prison. Sloan also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina, and Acting Special Agent-in-Charge Karen Wingerd of the IRS-Criminal Investigation Charlotte Field Office made the announcement.
IRS-Criminal Investigation and the North Carolina State Bureau of Investigation investigated the case.
Trial Attorney Kevin Schneider of the Justice Department’s Tax Division and Assistant U.S. Attorney Tanner Kroeger of the U.S. Attorney’s Office for the Middle District of North Carolina are prosecuting the case.
North Carolina Business Owner Pleads Guilty to Filing False Tax ReturnRead the Press Release
WASHINGTON – A North Carolina man pleaded guilty today to filing a false tax return.
According to court documents and statements made in court, Steve Sloan owned and operated Total Lawn and Landscape Pros LLC (Total Lawn), which provided lawn care services in Greensboro, Chapel Hill, and nearby areas. From 2014 to 2018, Sloan filed false returns with the IRS reporting each year only a portion of the profits actually earned by Total Lawn. For example, on his 2017 tax return Sloan reported total receipts of less than $200,000. In reality, the company’s receipts that year were $464,650. In all, Sloan caused a tax loss to the IRS of approximately $318,735.
Sloan is scheduled to be sentenced on June 21, 2022, and faces a maximum sentence of three years in prison. Sloan also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina, and Acting Special Agent-in-Charge Karen Wingerd of the IRS-Criminal Investigation Charlotte Field Office made the announcement.
IRS-Criminal Investigation and the North Carolina State Bureau of Investigation invested the case.
Trial Attorney Kevin Schneider of the Justice Department’s Tax Division and Assistant U.S. Attorney Tanner Kroeger of the U.S. Attorney’s Office for the Middle District of North Carolina are prosecuting the case.
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Danville Man Pleads Guilty to Federal Charges from Virginia, North CarolinaRead the Press Release
DANVILLE, VA - A Danville, Virginia man, who spent two years as a fugitive after embezzling $600,000 from a Danville credit union before being arrested in Durham, North Carolina, pleaded guilty today to federal charges stemming from his conduct in both Virginia and North Carolina.
Jorge Omar Navarro, 30, pleaded guilty today in federal court in the Middle District of North Carolina to one count of possession with intent to distribute cocaine and one count of possession of firearms in furtherance of a drug trafficking crime for his conduct in Durham. Navarro also pleaded guilty to federal charges arising out of the Western District of Virginia: one count of embezzlement and one count of using counterfeit currency with the intent to commit fraud for his conduct in Danville.
“A unique course of criminality culminated in today’s guilty plea, which ensures that the defendant will be sentenced for the entire range of his misconduct,” said Sandra J. Hairston, United States Attorney for the Middle District of North Carolina. “Credit for putting an end to the spree goes to officers of the Durham Police Department, whose thoroughness revealed that the defendant was in fact a drug trafficker and a fugitive from justice.”
“This defendant used his position of trust within the credit union to gain access to large sums of money only to abuse that trust in the name of greed,” United States Attorney Chris Kavanaugh of the Western District of Virginia said today. “Fortunately, the men and women of the Danville Police Department acted swiftly and were able to keep all of the counterfeit bills in this case from making their way into circulation.”
Navarro was the head teller at a branch of URW Federal Credit Union in Danville. As head teller, Navarro had access to the vault and authority to order money for the branch. In September 2018, Navarro fled after taking $600,000 in cash from the credit union’s vaults and replacing it with counterfeit bills. Navarro spent two years as a fugitive.
Navarro remined a fugitive until March 2021, when the Durham Police Department in North Carolina responded to a report of shots fired and found a man (later identified as Navarro) covered in blood who claimed to have been robbed at gunpoint. After obtaining a search warrant for the premises, they located multiple firearms, kilograms of cocaine and marijuana, drug paraphernalia, and $74,000 in cash. Navarro later admitted to investigators that he obtained the cash by selling drugs and confirmed his true identity, admitting that he had been using an alias after an incident with a bank in Virginia.
He is scheduled to be sentenced on June 21, 2022, and faces a minimum of ten years in prison and a maximum penalty of life. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Danville Police Department, the United States Secret Service, the Durham Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Homeland Security Investigations investigated the case.
The case is being prosecuted by Assistant U.S. Attorneys Eric L. Iverson for the Middle District of North Carolina and Rachel Barish Swartz for the Western District of Virginia.
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Greensboro Drug Dealer Who Shot GCSO Deputy Sentenced to More Than 16 Years in Federal PrisonRead the Press Release
GREENSBORO, N.C. - A Greensboro resident was sentenced on December 14, 2021, in federal court in Winston-Salem for drug and firearm offenses, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
IVORY JOE TISDALE, age 59, pleaded guilty on June 14, 2021, to knowingly possessing with intent to distribute approximately 146 grams of cocaine hydrochloride, and to knowingly carrying and using, by discharging, a Smith & Wesson .38 caliber handgun during and in relation to the charged drug offense. A factual basis proffered at the change of plea hearing established that on December 10, 2019, shortly after 7:00 a.m., deputies from the Guilford County Sheriff’s Office executed a search warrant at 1017 Moody Street in Greensboro, North Carolina. During the execution of that warrant TISDALE discharged a Smith & Wesson .38 caliber handgun through the front door of the home, striking a deputy in the hand and causing serious injury. Other deputies were able to render the scene safe for the subsequent execution of the warrant. From the home (and from the search of a related business at 3700 Spring Garden Street, Suite B, Greensboro, North Carolina) deputies recovered a total of approximately 146 grams of cocaine hydrochloride.
Chief United States District Judge Thomas D. Schroeder sentenced TISDALE to a total of 200 months in federal prison. In addition to the prison time, TISDALE was ordered to serve concurrent three-year and five-year terms of supervised release and to pay a special assessment of $200.00. Restitution was also ordered to the deputy TISDALE shot.
The case was investigated by the Guilford County Sheriff’s Office and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorneys Veronica L. Edmisten and Clifton T. Barrett.
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Winston-Salem Nurse Pleads Guilty to Tampering with Medical SuppliesRead the Press Release
GREENSBORO, N.C. - A Winston-Salem woman pleaded guilty today to attempting to tamper with consumer products, announced U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.
According to court filed documents, Emilee Kathryn Poteat, 32, removed and opened packages containing vials of injectable Hydromorphone from Novant Health Forsyth Medical Center (NHFMC) while employed as a contact nurse in the Clinical Pre/Post Procedure Unit. From July, 2020 to November, 2020, Poteat removed vials for the purpose of converting and consuming the Hydromorphone by injecting the drug into herself. Poteat then replaced the used vials with tampered vials containing a saline solution. Poteat knew that, in doing so, nurses at NHFMC might unknowingly administer the contents of compromised vials to patients.
Virginia Department of Health Investigator Laura Pezzulo began an investigation into Poteat’s handling of the drugs after NHFMC provided vials they suspected had been tampered with by Poteat. Poteat later admitted to tampering with the injectable Hydromorphone in an interview with Investigator Pezzulo.
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those who knowingly tamper with medicines put patients’ health at risk,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to protect the public health and bring to justice health care professionals who take advantage of their unique position and compromise their patients’ health and comfort by tampering with needed drugs.”
U.S. District Judge Loretta C. Biggs will set sentencing at a later date. At sentencing, Poteat faces a maximum sentence of ten years in prison, a period of supervised release, and monetary penalties.
Sandra J. Hairston, U.S. Attorney for the Middle District of North Carolina, made the announcement. Agents with the Food and Drug Administration/Criminal Investigation Division investigated the case. The case is being prosecuted by Assistant U.S. Attorney Frank J. Chut.
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Two Orange County Men Charged with Drug Trafficking in Criminal ComplaintRead the Press Release
Greensboro, NC – Two Orange County men were arrested on Thursday, November 17, 2021, for possession of eight kilograms of cocaine.
According to court documents, Epifanio Martinez Rodriguez (40) and Felipe Carranza Rivera (30), both Mexican citizens residing in the United States illegally, were arrested after a Confidential Source (CS) working with the Orange County Sheriff’s Office participated in a controlled purchase of eight kilograms of cocaine on November 17, 2021. Investigators agreed to meet the suspects in Mebane after the CS communicated with Rodriguez and Rivera on social media about purchasing cocaine.
Rodriguez and Rivera are each charged with one count of conspiracy to distribute cocaine and one count of possession with intent to distribute cocaine. If convicted, they each face a mandatory minimum of ten years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Orange County Sheriff’s Office, with the Drug Enforcement Administration, are investigating the case. U.S. Attorney Sandra Hairston of the Middle District of North Carolina made the announcement, and Assistant U.S. Attorney Michael A. DeFranco is prosecuting the case.
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.
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New United States Attorney Takes Oath of OfficeRead the Press Release
Greensboro, NC – Sandra J. Hairston was sworn-in as the next United States Attorney for the Middle District of North Carolina on November 23, 2021. Chief Judge Thomas J. Schroeder administered the oath of office to U.S. Attorney Hairston in a private ceremony yesterday evening.
Ms. Hairston was nominated for the position of United States Attorney by President Joseph R. Biden on September 28, 2021. She was confirmed by the Senate on November 19, 2021.
Ms. Hairston joined the United States Attorney’s Office for the MDNC in 1990. During more than thirty years as an Assistant United States Attorney, Ms. Hairston has served as Deputy Chief of the Criminal Division and Lead Attorney in the Organized Crime Drug Enforcement Task Force (OCDETF) Section in the MDNC. She was named First Assistant United States Attorney in April 2014. Ms. Hairston also served as Acting United States Attorney from January 14, 2017 to January 3, 2018, and from March 1, 2021 to November 23, 2021.
From April 1994 until June 1996, Ms. Hairston served as Chief of the Criminal Division in the United States Attorney’s Office for the Eastern District of North Carolina. Ms. Hairston returned to the MDNC in late June 1996.
Ms. Hairston began her legal career in 1987 as an Assistant District Attorney in the Thirteenth Prosecutorial District of North Carolina.
Ms. Hairston is a 1981 graduate of the University of North Carolina at Charlotte where she received a Bachelor of Arts degree in English. In 1987, she was awarded the degree
of Juris Doctor from the North Carolina Central University School of Law in Durham, North Carolina.
In 2002, Ms. Hairston received the Director’s Award from the Executive Office for United States Attorneys for Superior Performance as an Assistant United States Attorney.
Ms. Hairston was the 2015 recipient of the Peter S. Gilchrist III Award, which is given by the Criminal Justice Section of the North Carolina Bar Association to a Prosecutor “who exemplifies the highest ideals of the profession.”
A formal investiture ceremony for U.S. Attorney Hairston will be held at a date to be determined.
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Operation False Haven: Convicted Child Rapist Sentenced for Naturalization Fraud and Judicially DenaturalizedRead the Press Release
GREENSBORO, N.C. – A Lee County resident was sentenced on November 17, 2021, to 6 months in prison and was judicially denaturalized.
Ruben Rosas-Avalos, age 25, a naturalized citizen of the United States, born in Mexico and residing in Lee County, was sentenced by United States District Judge Loretta C. Biggs. Rosas-Avalos pleaded guilty to naturalization fraud on July 20, 2021.
According to court records, on February 23, 2016, Rosas-Avalos fraudulently obtained U.S. citizenship by making materially false statements under oath regarding his naturalization application. In response to the question “Have you ever committed, assisted in committing, or attempted to commit, a crime or offense for which you were not arrested?” he answered, “No.”
On March 28, 2019, in the Superior Court of North Carolina in Lee County, Rosas-Avalos was convicted of statutory rape of a child and indecent liberties with a child. Rosas-Avalos was sentenced to a term of imprisonment of over 26 years and ordered to register as a sex offender. According to court records, Rosas-Avalos committed the offense of indecent liberties with a child on July 27, 2015 and committed the offense of statutory rape of a child on September 13, 2017. The victims of those crimes were two different children. Rosas-Avalos was not arrested until after he naturalized, thus immigration officials were unaware of his crimes.
Sandra J. Hairston, Acting U.S. Attorney for the Middle District of North Carolina, made the announcement. Agents with ICE’s Enforcement and Removal Operations assigned to the Document Benefit Fraud Task Force investigated the case as part of Operation False Haven, an ongoing initiative purpose-built to aggressively identify and prosecute child molesters and other egregious felons who fraudulently obtained U.S. citizenship. The case was prosecuted by Assistant U.S. Attorney Frank J. Chut.
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Justice Department Announces $139 Million for Law Enforcement Hiring to Advance Community PolicingRead the Press Release
WASHINGTON – The Department of Justice today announced more than $139 million in grant funding through the Department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. In the Middle District of North Carolina, three municipalities were awarded funding totaling $1,615,698.00.
“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” said Attorney General Merrick B. Garland. “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.”
“Our law enforcement partners in the Middle District have worked increasingly hard to tackle the rise in gun violence and violent crime in recent years. We are excited that they will be receiving additional federal resources through this grant to continue keeping their communities safe and to hire additional personnel who will focus on community policing,” said Acting US Attorney Sandra Hairston.
The following cities or towns in the Middle District of North Carolina received awards:
- Biscoe, Town of $115,698
- Burlington, City of $750,000
- Graham, City of (Inc.) $750,000
CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or supporting police-based responses to persons in crisis. The complete list of awards can be found here.
Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537 million for CHP, an increase of $300 million.
To learn more about CHP, please visit https://cops.usdoj.gov/chp-award. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.
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North Carolina Man Sentenced to 75 Months in Prison for a Dog Fighting Offense and Possession of a Firearm by a Prohibited PersonRead the Press Release
WASHINGTON – A North Carolina man was sentenced today to 75 months in prison for conspiracy to commit dog fighting offenses and being a felon in possession of a firearm.
Delontay Moore, 26, of Concord, pleaded guilty to the charges on July 8. According to court documents, Moore sponsored and exhibited a dog in a dog fight in December 2019, after conspiring with others to prepare and train the dog for the fight. The dog lost and died of injuries sustained during the fight. In February, agents seized 25 dogs from Moore, many of which exhibited the types of scars that are observed in dogs that are used in dog fights. They also showed evidence of gross neglect, including infections where their ears had been cropped; inflamed or infected wounds; and dehydration. On the day of the seizure, three dogs required emergency treatment, including treatment for a fractured leg with exposed bone.
The felon-in-possession charge stemmed from an investigation by the Concord Police Department. According to court documents, the Concord Police Department received an anonymous tip that Moore — who had previously been convicted of drug and weapons felonies — was storing firearms around his property. In December 2019, a detective with the Concord Police Department conducted surveillance there and saw Moore carry what proved to be an AR-15 assault style rifle behind his house and stash it under a tarp. Concord Police Department subsequently recovered the weapon during a search.
Moore was sentenced to 75 months total incarceration: 63 months on the felon in possession charge, and 60 months on the conspiracy to commit dog fighting charge, which is the statutory maximum. 48 months of the conspiracy to commit dog fighting charge will run concurrent with the felon in possession charge and 12 months will run consecutively.
“Dog fighting is not only inhumane and brutal, but also a federal crime,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Shutting down this criminal industry and holding accountable those who engage in it is part of our ongoing mission.”
“This case reveals the cruel truth of dog fighting: it brutalizes and exploits animals for the sake of trivial human entertainment,” said Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “We thank the law enforcement agents who investigated the case. Through their efforts, the defendant will serve a federal prison sentence for participating in this barbarous activity and for illegal possession of a firearm.”
“The intentional infliction of pain and suffering on animals for sport is unfathomable," said Special Agent in Charge Jason Williams of the U.S. Department of Agriculture-Office of Inspector General (USDA-OIG). “We appreciate the commitment of our law enforcement partners in pursuing these individuals who choose to participate in this heinous pastime while also committing other serious offenses in our communities.”
The USDA Office of Inspector General investigated the dogfighting case, with assistance from the Rowan County Sheriff’s Office and the Concord Police Department. The felon-in-possession case was investigated by the Concord Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Ashley Waid of the U.S. Attorney’s Office for the Middle District of North Carolina and Trial Attorney Erica Pencak of the Justice Department’s Environmental Crimes Section prosecuted the case.
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Cabarrus County Man Sentenced to 40 Years in Prison for Production and Possession of Child PornographyRead the Press Release
GREENSBORO – A North Carolina man was sentenced on November 10, 2021, to 480 months in prison for production and possession of child pornography.
Jeremy Nicholas Mynes, 31, was indicted in October, 2020, on two counts of production of child pornography, one count of receipt of child pornography, and one count of possession of child pornography. He later pleaded guilty to one count of both production and possession on March 2, 2021.
In July of 2020, Dropbox, Inc. made a report to the National Center for Missing and Exploited Children (NCMEC) CyberTipline that child pornography images were uploaded to a Dropbox account. Images uploaded to the account included minors engaged in sexual acts. Detective Jamieson of the Concord Police Department determined that the Dropbox account and the internet protocol (IP) address associated with the uploads were associated with Mynes at his Concord address.
In July of 2020, members of the Concord Police Department and the Federal Bureau of Investigation (FBI) obtained and executed a search warrant for Mynes’ home. Several devices seized during the search contained child pornography. The child pornography depicted the sexual exploitation and abuse of minors, including 57 images he produced himself with two minors who were approximately five and seven years old during the times the images were produced in 2018 and 2020.
“Concord Police Department’s and FBI’s quick response to the CyberTipline report led to the apprehension of an individual who engaged in the production of child pornography,” said Acting U.S. Attorney Sandra J. Hairston. “Follow up and active investigation of these CyberTipline reports are critical in protecting children from sexual exploitation.”
"Jeremy Mynes' offenses are heinous. He abused and exploited vulnerable children. The damage to his victims is immeasurable. Thankfully, with a 40-year federal sentence and a state trial still ahead, he will likely spend the rest of his life in prison," said Robert R. Wells, the FBI Charlotte Special Agent in Charge.
This case was investigated by the Federal Bureau of Investigation and the Concord Police Department and was prosecuted by Assistant U.S. Attorney Kennedy Gates.
The case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. The initiative is led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and focuses on coordinating federal, state, and local resources to better identify 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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Durham Woman Sentenced for Lying to Investigators About Suspect in ShootingRead the Press Release
GREENSBORO, N.C. - A Durham resident was sentenced Friday in federal court for lying to agents with the Federal Bureau of Investigation asking questions about a drive-by shooting, announced Acting United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
CHAKERA ALEXANDRIA MANGUM, age 29, was charged with lying to agents with the Federal Bureau of Investigation about the location of evidence in a drive-by shooting, as well as the location of the suspect. She pled guilty on March 9, 2021.
MANGUM was sentenced by United States District Court Judge Catherine C. Eagles, in Greensboro. MANGUM was sentenced to 2 years in prison and 3 years of supervised release and ordered to pay a $100 special assessment. One of MANGUM’s special conditions of supervised release prohibits her association with gang members.
According to publicly-filed court documents, on November 14, 2020, an off-duty deputy with the Durham County Sheriff’s Office was stopped at a stoplight on Highway 98 in Durham when another car pulled alongside him and the front passenger rolled down his window and opened fire. The suspect car then sped away. Investigators identified a suspect and located him that evening driving a Dodge Challenger belonging to MANGUM. When federal investigators questioned MANGUM that same evening and the next day, she made multiple false statements regarding the suspect’s location on November 14 and the location of her Dodge Challenger, which the suspect had been driving. MANGUM did so despite multiple warnings from federal investigators that lying to a federal agent during the course of an investigation is a federal crime.
“Here is a simple truth we all learned as children: lying is a bad decision with serious consequences,” said Acting United States Attorney Hairston. “Lying to federal law enforcement agents is a felony that can land you in jail, even if you had no part in the crime being investigated.”
“Chakera Mangum knowingly interfered with the capture of a dangerous fugitive. Despite being repeatedly warned she could face federal charges, she stuck to her story which delayed the FBI’s efforts to get the fugitive into custody. This should be a lesson for anyone who thinks protecting an accused shooter is more important than telling law enforcement the truth,” said Robert R. Wells, Special Agent in Charge of FBI Charlotte.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney JoAnna G. McFadden prosecuted the case.
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North Carolina Tax Preparer Sentenced to Prison for Defrauding IRSRead the Press Release
A North Carolina tax return preparer was sentenced today to 20 months in prison for conspiring to defraud the IRS.
According to court documents and statements made in court, from 2012 through 2017, Andrea Pasley, of Durham, conspired with Karen Jones and Audrey Odom to prepare fraudulent tax returns for clients of Jones and Stone Taxes. Returns prepared by the conspirators claimed false education credits or dependents or manipulated the clients’ income to qualify for larger earned income tax credits. Under the scheme, some clients were charged up to $3,000 for preparing returns. Based on an analysis of the falsely claimed education credits, the conspirators caused a tax loss of approximately $1.2 million.
Jones and Odom also pleaded guilty to conspiracy to defraud the IRS and were sentenced earlier this year to 22 months and 15 months in prison, respectively, for their roles in the conspiracy.
In addition to the term of imprisonment, U.S. District Judge Catherine C. Eagles ordered Pasley to serve three years of supervised release and to pay approximately $1,264,493 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Todd Ellinwood and Kavitha Bondada of the Tax Division prosecuted the case.
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U.S. Attorney’s Office Announces Partnership with Justice Department’s New Initiative to Combat RedliningRead the Press Release
GREENSBORO, N.C. - The U.S. Attorney’s Office for the Middle District of North Carolina announces its partnership with the Justice Department’s Civil Rights Division as it launches the department’s new Combatting Redlining Initiative.
Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new Initiative represents the department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act.
“Lending discrimination runs counter to fundamental promises of our economic system,” said Attorney General Merrick B. Garland. “When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated. Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities. We will spare no resource to ensure that federal fair lending laws are vigorously enforced and that financial institutions provide equal opportunity for every American to obtain credit.”
“Even now, more than fifty years since the passage of the Fair Housing Act, our local communities continue to experience the effects of discriminatory housing policies and unequal access to credit and investment,” said Acting U.S. Attorney Hairston. “Our office is proud to partner with the Civil Rights Division to combat housing discrimination, and to ensure that financial institutions that operate in our District comply with their obligations under federal law.”
Redlining, a practice institutionalized by the federal government during the New Deal era and implemented then and now by private lenders, has had a lasting negative impact. For American families, homeownership remains the principal means of building wealth, and the deprivation of investment in and access to mortgage lending services for communities of color have contributed to families of color persistently lagging behind in homeownership rates and net worth compared to white families. The gap in homeownership rates between white and Black families is larger today than it was in 1960, before the passage of the Fair Housing Act of 1968.
This Initiative, which will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney’s Offices, will build on the longstanding work by the Division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live. The initiative will:
- Use U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.
- Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services, but engage in mortgage lending and now make the majority of mortgages in this country.
- Strengthen our partnership with financial regulatory agencies such as to ensure the identification and referrals of fair lending violations to the Department of Justice.
- Increase coordination with State Attorneys General on potential fair lending violations.
Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
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North Carolina Tax Preparer Sentenced for False ReturnsRead the Press Release
A North Carolina man was sentenced yesterday to 33 months in prison for assisting in the preparation of a false tax return and for filing a false personal income tax return.
According to court documents, Nicholas Laws, of Durham, was an office manager and a return preparer in the Winston-Salem branch of Tax Mind. As a manager, Laws trained and supervised other Tax Mind return preparers, reviewed tax returns, and filed completed returns. From 2014 to 2019, Laws prepared fraudulent returns for clients that reported false wages and business income to increase clients’ refunds. Laws also edited some returns prepared by other Tax Mind preparers to include similar fraudulent information. Laws charged fees, which occasionally exceeded $1,000, to prepare false returns.
In addition to his preparation of false client returns, Laws also filed a false personal income tax return for 2014 and did not file returns reporting his income for 2015 through 2019, despite being required to do so by law. Laws intended to cause a tax loss to the IRS of $2,934,891.
In addition to the term of imprisonment, U.S. District Judge William L. Osteen ordered Laws to serve one year of supervised release and to pay approximately $184,072 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Brian Flanagan and Kevin Schneider of the Tax Division and Assistant U.S. Attorney Cliff Barrett of the Middle District of North Carolina prosecuted the case.
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North Carolina Tax Preparer Sentenced for False ReturnsRead the Press Release
A North Carolina man was sentenced yesterday to 33 months in prison for assisting in the preparation of a false tax return and for filing a false personal income tax return.
According to court documents, Nicholas Laws, of Durham, was an office manager and a return preparer in the Winston-Salem branch of Tax Mind. As a manager, Laws trained and supervised other Tax Mind return preparers, reviewed tax returns, and filed completed returns. From 2014 to 2019, Laws prepared fraudulent returns for clients that reported false wages and business income to increase clients’ refunds. Laws also edited some returns prepared by other Tax Mind preparers to include similar fraudulent information. Laws charged fees, which occasionally exceeded $1,000, to prepare false returns.
In addition to his preparation of false client returns, Laws also filed a false personal income tax return for 2014 and did not file returns reporting his income for 2015 through 2019, despite being required to do so by law. Laws intended to cause a tax loss to the IRS of $2,934,891.
In addition to the term of imprisonment, U.S. District Judge William L. Osteen ordered Laws to serve one year of supervised release and to pay approximately $184,072 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Brian Flanagan and Kevin Schneider of the Tax Division and Assistant U.S. Attorney Cliff Barrett of the Middle District of North Carolina prosecuted the case.
NCMEC CyberTipline Report Leads to 15 Year Sentence for Randolph County Recidivist Sex OffenderRead the Press Release
GREENSBORO – A North Carolina man was sentenced on October 6, 2021, to 180 months in prison, followed by a lifetime term of supervised release, for receiving child pornography after having been convicted of a child pornography offense.
Michael Scott Kivett, 41, was previously convicted in Guilford County of multiple counts of Second Degree Exploitation of a Minor in 2001 and, again, in 2009. As a result, he was required to register as a sex offender.
In September 2019, Google made a report to the National Center for Missing and Exploited Children (NCMEC) CyberTipline that child pornography images were uploaded to a Google Photos account. The images included prepubescent minors engaged in sex acts. The North Carolina State Bureau of Investigation (SBI) Computer Crimes Unit, the lead agency of the North Carolina Internet Crimes Against Children (ICAC) Task Force, received the tip and directed it to the Randolph County Sheriff’s Office, a task force member.
Randolph County Sheriff’s Office Investigator Joshua Hartong determined that the Google account belonged to Kivett and, in November 2019, he and Homeland Security Investigations (HSI) Special Agent Jessie Foster confronted Kivett and seized his phone. On the phone, investigators found 108 images and 126 videos depicting child pornography. Kivett admitted to viewing and downloading child pornography using a foreign cloud-based instant messaging application that offers end-to-end encrypted "secret" chatting. Kivett was arrested and detained on state charges.
He was charged in the Middle District of North Carolina in February 2020 and pled guilty to a superseding indictment charging him with receiving child pornography in November 2019 after having already been convicted of a child pornography offense.
“Protecting children from online sexual exploitation is a high priority,” said Acting U.S. Attorney Sandra J. Hairston. “In North Carolina, the ICAC task force, spearheaded by the SBI, leads these efforts. Active task force participation by our local partners like the Randolph County Sheriff’s Office is critical, especially given the increase in CyberTipline reports. We all owe a debt of gratitude to the investigators who work these cases.”
“Increased use of and access to the Internet during the pandemic has led to more opportunities for offenders to come into contact with teenagers and children. We greatly appreciate our partnerships with agencies advocating for increased public awareness and those who have contacted law enforcement with tips that make the Internet a safer place for children,” said Randolph County Sheriff Greg Seabolt.
“Kivett is being held accountable for his continued involvement and delight in the disgusting images of children being exploited, “said Special Agent In Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “Every time one of these images is shared or viewed it revictimizes an innocent person and HSI along with its partners will continue to search for, arrest and bring to justice anyone involved in this heinous crime.”
NCMEC’s CyberTipline is the nation’s centralized reporting system for the online exploitation of children. The public and electronic service providers can make reports of suspected online enticement of children for sexual acts, child sexual molestation, child sexual abuse material, child sex tourism, child sex trafficking, unsolicited obscene materials sent to a child, misleading domain names, and misleading words or digital images on the internet. https://www.missingkids.org/gethelpnow/cybertipline.[1]
According to the Computer Crimes Unit, https://www.ncsbi.gov/Divisions/Field-Operations/Computer-Crimes.aspx, NCMEC CyberTipline reports have increased dramatically in recent years.
Year
NCMEC CyberTipline Reports to North Carolina
2016
2511
2017
3258
2018
4737
2019
4893
2020
9308
2021
>11,500*
*Estimated based on reports to date: 8,815 as of October 1, 2021. September reports totaled 1403, the highest number ever received in a single month.
“The North Carolina ICAC Task Force is only successful because of the partnerships of local, state, and federal agencies working together to investigate some of the most heinous crimes that are perpetrated against some of the most vulnerable in our society,” said NC ICAC Task Force Commander Kevin Roughton. “As more children are online every day in an increasingly virtual world, the work of ICAC Task Force members is more important now than ever.”
This case was prosecuted by Assistant United States Attorney Eric L. Iverson. It was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. The initiative is led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and focuses on coordinating federal, state, and local resources to better identify and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. www.projectsafechildhood.gov.
[1] To report information about missing or exploited children, dial 1-800-843-5678 to reach NCMEC’s 24-hour call center.
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Cabarrus County Man Sentenced for Distribution and Production of Child PornographyRead the Press Release
GREENSBORO – A North Carolina man was sentenced on September 28, 2021, to 600 months in prison, followed by a lifetime term of supervised release, for production and distribution of child pornography.
Adam Chase Wallace, 25, was indicted by superseding indictment in February, 2021, on four counts of production of child pornography, one count of distribution of child pornography, and one count of possession of child pornography. He later pleaded guilty to one count of both production and distribution on May 20, 2021.
According to court documents, Homeland Security Investigations (HSI) Newark notified Special Agents with HSI Charlotte that they received information from an individual regarding a contact he knew as “Adam” who was filming himself abusing two minors and producing and sharing illegal content. An undercover agent continued communicating with the individual and gathered evidence that Wallace was producing and distributing child pornography. Using social media account information, verified through commercial and law enforcement databases, Special Agents identified Wallace as the likely perpetrator and executed a search warrant for his electronic devices. A computer forensic expert located more than one thousand images of child pornography on Wallace’s devices, including images he produced with the two minors. Wallace admitted to producing images and videos of his abuse to law enforcement shortly after his arrest.
"Finding and arresting perpetrators, like Wallace, that prey upon innocent children is a crucial part of our mission to protect the homeland," said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “HSI and its law enforcement partners will continue to target these predators and bring them to justice."
This case was investigated by Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney Kennedy Gates and Assistant U.S. Attorney Nicole R. DuPre.
The case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. The initiative is led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and focuses on coordinating federal, state, and local resources to better identify 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 Woman Sentenced to 36 Months in $1.49 Million Tax Preparer CaseRead the Press Release
GREENSBORO, N.C. - A Hoke County resident was sentenced today in federal court in Greensboro for aiding in the preparation of false tax returns, announced Acting United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
NIKKI DECOLE CUNNINGHAM-QUICK, age 41, of Raeford, North Carolina, was sentenced to a 36-month term of imprisonment by Senior United States District N. Carlton Tilley, Jr. In addition to prison time, CUNNINGHAM-QUICK was ordered to serve one year of supervised release and to pay a special assessment of $100.00. CUNNINGHAM-QUICK owes the IRS $308,312 in restitution. She pleaded guilty on July 9, 2020, to aiding in the preparation of a false tax return, in violation of Title 26, United States Code, Section 7206(2).
According to court records, CUNNINGHAM-QUICK prepared a number of false tax returns for some clients of her business, “Nikki’s Tax Service.” The court records indicate CUNNINGHAM-QUICK routinely included false items on federal income tax returns of some clients, including the use of false dependents, false income, and false education credits, all of which produced fraudulently inflated refunds. In total, the tax loss associated with the fraudulent refunds that CUNNINGHAM-QUICK prepared was $1,494,924.26, according to court records.
IRS-Criminal Investigation investigated the case. The case was prosecuted by Assistant United States Attorney Tanner Kroeger.
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Statement from Acting U.S. Attorney Hairston on Shooting at Mt. Tabor High SchoolRead the Press Release
GREENSBORO, NC —Acting U.S. Attorney Sandra Hairston made this statement upon hearing of the fatal shooting at Mt. Tabor High School:
“I am deeply saddened to learn of the tragic death of William Chavis Raynard Miller, Jr. today in Winston-Salem. Only days into the school year, another senseless act of gun violence has resulted in the loss of a child’s life. The United States stands ready to work with our law enforcement partners to investigate and bring justice for this victim and his family. We must, together, find ways to put an end to the epidemic of gun violence in our schools.”
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Man Sentenced for Drug Trafficking and Firearms Offenses in Stanly CountyRead the Press Release
GREENSBORO, N.C. - A Mount Gilead man was sentenced today in federal court in Greensboro for knowingly possessing a firearm as a convicted felon and for distribution of fentanyl, announced Acting United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
JARBARRI RANDALE WALL, age 39, was sentenced to a 204-month term of imprisonment by United States District Judge Catherine C. Eagles. WALL was also ordered to pay a $200 special assessment and submit to 5 years of supervised release following his imprisonment. He was also revoked on his current term of supervised release and sentenced to serve a consecutive sentence of 24 months. WALL pleaded guilty on May 10, 2021, to possession of a firearm by a convicted felon and distribution of 40 grams or more of a mixture and substance containing fentanyl.
According to court documents, law enforcement officers conducted a controlled purchase of fentanyl from WALL using a confidential informant in October 2019. WALL traveled to Albemarle in Stanly County where he sold the informant 56 grams of fentanyl and gave the informant a sample of heroin. In September 2020, WALL told the informant he was traveling to Albemarle and could sell the informant more fentanyl. The informant alerted law enforcement who conducted a traffic stop as WALL drove through Stanly County towards Albemarle, after leaving a residence in Charlotte. A search of WALL’s car revealed marijuana, drug paraphernalia, a bag containing 30 grams of a mixture of heroin and fentanyl, and a FN Herstal 5.7 caliber semi-automatic pistol. The firearm had a 20-round magazine attached and was loaded with 18 rounds. A spare 20-round magazine loaded with 19 rounds was also found inside the car. WALL had $5,320 in cash on him when arrested and admitted to possessing the firearm and narcotics.
WALL had previously been convicted of Social Security Fraud in the U.S. District Court for the Middle District of North Carolina in January 2016 and was sentenced to 20 months’ imprisonment followed by 3 years of supervised release. WALL was still on federal supervised release when he committed these new offenses.
A search warrant later executed at the Charlotte residence maintained by WALL revealed two additional AR-15 style firearms, 61 grams of a mixture of heroin and fentanyl, approximately 900 pills which contained a mixture of both heroin and fentanyl, several firearm magazines including two drum magazines, different calibers of ammunition, 54 grams of marijuana, and a large amount of U.S. currency.
The case was investigated by Homeland Security Investigations, the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Albemarle Police Department, the Stanly County Sheriff’s Office, and North Carolina Alcohol Law Enforcement. The case was prosecuted by Assistant United States Attorney Craig M. Principe.
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Man Sentenced for Possession of a Firearm After Highway Shootout with Greensboro PoliceRead the Press Release
GREENSBORO, N.C. - JULIUS MONCRE WILLIAMS was sentenced yesterday in federal court in Greensboro for knowingly possessing a firearm following a shootout with Greensboro Police Department (GPD) officers announced Acting United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
WILLIAMS, age 38, was sentenced to a 118-month term of imprisonment by United States District Judge Catherine C. Eagles. In addition to his sentence, WILLIAMS was ordered to pay a $100 special assessment and submit to 3 years of supervised release following his imprisonment. WILLIAMS pleaded guilty on May 4, 2021, to possession of a firearm by a previously convicted felon.
Court records show that the GPD’s Traffic Safety Unit initially encountered WILLIAMS after an officer conducting a speed enforcement operation on Interstate 85 noticed WILLIAMS traveling 85 miles per hour in a 60 mile per hour zone. After refusing to pull over for GPD officers, additional officers were called for assistance. WILLIAMS then accelerated to a speed of 100 miles per hour before crashing into a tractor trailer in the middle-lane of the highway. After his vehicle veered off the highway into an embankment, WILLIAMS shot at a GPD officer approaching to investigate who returned fire in response. A Glock 9mm semi-automatic was located in his vehicle and was later identified by GPD as stolen out of Charlotte, NC.
WILLIAMS was convicted in 2011 in Lenoir County Superior Court for kidnapping and served a prison term of more than one year, rendering him ineligible to possess a firearm.
The case was investigated by the Guilford Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Lindsey A. Freeman, Assistant United States Attorney Stephen T. Inman, and Assistant United States Attorney Nicole R. Dupre.
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Former Owners of Hillsborough Compounding Pharmacy Pay $1,082,991.94 to Resolve False Claims Act AllegationsRead the Press Release
GREENSBORO, N.C. - The owners of a now-closed compounding pharmacy have paid $1,082,991.94 to resolve allegations that they violated the False Claims Act by submitting false claims for payment to the TRICARE program between September 2014 and May 2015.
David and Lois Tsui of Chapel Hill, North Carolina formerly owned Wellcare Compounding, in Hillsborough, North Carolina. David Tsui was previously convicted of health care fraud, and in 2009 was excluded from participation in federal health care programs, including TRICARE. The United States contended that Wellcare intentionally concealed David Tsui’s involvement in and ownership of the pharmacy, including by falsely representing to TRICARE that Lois Tsui was the pharmacy owner. The United States also asserted that Wellcare made improper payments to physicians and “marketers” in exchange for prescriptions or referrals for prescriptions, in violation of the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b). In addition, Wellcare encouraged medically unnecessary prescriptions consisting of high-margin ingredients to maximize the pharmacy’s reimbursement. The United States contended that through these actions, the Tsuis and Wellcare knowingly caused false claims to be presented to the TRICARE program.
“This settlement sends a strong message that individuals who defraud federal health care programs cannot rely on the passage of time or the use of straw owners to conceal their wrongdoing,” said Acting United States Attorney Sandra Hairston. “We will continue to identify those who seek to seek to exploit federal programs for personal gain and will hold them accountable.”
“The results of this investigation highlight another step forward by the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to root out fraud and corruption involving medical professionals who undermine the integrity of the Department of Defense,” said Special Agent in Charge Christopher Dillard, DCIS Mid-Atlantic Field Office. “DCIS will continue to target fraud, waste, and abuse to preserve and recover precious taxpayer dollars for our most vulnerable programs, such as TRICARE.”
This case was handled by the U.S. Attorney’s Office for the Middle District of North Carolina and the Defense Criminal Investigative Service. The United States was represented by Assistant United States Attorney Cassie Crawford.
The claims settled by this agreement are allegations only. The Settlement Agreement is not an admission of liability or wrongdoing by Wellcare or the Tsuis.
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Statement from Acting U.S. Attorney Sandra Hairston on Death of Sheriff ClemmonsRead the Press Release
GREENSBORO, NC - Acting U.S. Attorney Sandra Hairston’s statement following the death of Richmond County Sheriff Clemmons:
“It is with great sadness that we learned of the passing of Richmond County Sheriff James E. Clemmons, Jr. He was a trusted partner to the U.S. Attorney’s Office for the Middle District of North Carolina, always fully supportive of the mission to eradicate crime in Richmond County. He was held in the highest regard possible by both his deputies and the constituents he served. Sheriff Clemmons was a leader of rare qualities, having risen through the ranks of the Sheriff’s Office over the last 32 years to become a highly respected voice for law enforcement throughout his own county and the State of North Carolina. Always approachable, always candid, and never one to back down from a tough issue, he will be sorely missed by everyone in this Office. His collegiality, professionalism, and dedication to ‘doing it the right way’ will never be forgotten.”
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Montgomery County Man Sentenced for Receipt of Child PornographyRead the Press Release
GREENSBORO – A North Carolina man was sentenced today to 327 months in prison for receipt of child pornography.
Ronnie Nelson Clark, 38, was indicted on September 2, 2020, on one count of receipt and attempted receipt of child pornography. He pleaded guilty to the indictment on February 3, 2021.
According to court documents, in April, 2019, North Carolina Department of Public Safety Probation and Parole officers conducted a compliance check on Clark, who was a registered sex offender under their supervision. Clark was convicted of first-degree rape of a child in Montgomery County Superior Court in 2006 and sentenced to 173 months to 217 months of imprisonment. Clark had completed his term of imprisonment and was under supervision as a result. Clark’s conditions of supervision included limitations on his use of electronic devices and contact with minors, and required him to submit to warrantless searches, including searches of computers and electronic devices.
When officers arrived at Clark’s residence, they asked to see Clark’s cell phone and saw several text message conversations with what appeared to be underage girls. These conversations were sexual in nature. Montgomery County Sheriff’s Office (MCSO) deputies then obtained search warrants for Clark’s cell phone and residence. MCSO detectives seized two of Clark’s cell phones and a tablet and noted conversations on both cell phones between Clark and underage girls. In the messages, Clark would ask the girls about their schools and their parents. In most of the messages, Clark referred to the girls as “baby girl,” and the girls referred to Clark as “daddy.” Federal Bureau of Investigation review of one of Clark’s cell phones found images and videos of child pornography and revealed additional conversations that appeared to be with minors using social media applications including Instagram, Snapchat, Facebook Messenger, and the default text messaging application. Clark often asked the girls if they were single and asked their ages. The girls would say their ages, often ages twelve to fourteen years old. Clark told the girls he wanted to date them and would ask if age mattered to the girls. Many of the girls told Clark he was too old for them. Clark often tried to convince them otherwise. In one conversation, when the minor indicated she was only twelve, Clark responded, “Why does that matter nobody gotta know but us ik you wouldn’t tell on me would u.” Clark asked one person, later identified as an adult purporting to be a 9-year-old, for pictures of her genitals.
Following release from prison, Clark will be subject to supervised release for life.
This case was investigated by the Federal Bureau of Investigations, the Montgomery County Sheriff’s Office, and the North Carolina Department of Public Safety Probation and Parole and was prosecuted by Assistant U.S. Attorney Kennedy Gates.
The case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. The initiative is led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and focuses on coordinating federal, state, and local resources to better identify 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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North Carolina Tax Preparer Pleads Guilty to Preparing False ReturnsRead the Press Release
A Winston-Salem, North Carolina, tax preparer pleaded guilty today to aiding and assisting in the preparation of a false tax return and to filing a false personal income tax return.
According to court documents, from 2014 to 2019, Nicholas Laws managed the Winston-Salem branch of Tax Mind, a tax-return preparation business. During that period, Laws prepared fraudulent returns for clients that reported false wages and business incomes to increase the clients’ refunds. Laws charged additional fees to prepare false returns with fees occasionally exceeding $1,000. Laws also filed a false personal income tax return for 2014 and did not file tax returns reporting his income for 2015 through 2019, despite having an obligation to do so. Laws intended to cause a tax loss to the IRS of $2,934,891.
Laws is scheduled to be sentenced on Oct. 20, 2021. Laws faces a statutory maximum sentence of three years in prison for assisting in the preparation of a false tax return and three years in prison for filing a false personal income tax return, as well as a period of supervised release, restitution and monetary penalties. Laws agreed in his plea agreement to pay restitution to the IRS in the amount of $184,072. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Brian Flanagan and Kevin Schneider of the Tax Division and Assistant U.S. Attorney Cliff Barrett of the Middle District of North Carolina are prosecuting the case.
North Carolina Tax Preparer Pleads Guilty to Preparing False ReturnsRead the Press Release
A Winston-Salem, North Carolina, tax preparer pleaded guilty today to aiding and assisting in the preparation of a false tax return and to filing a false personal income tax return.
According to court documents, from 2014 to 2019, Nicholas Laws managed the Winston-Salem branch of Tax Mind, a tax-return preparation business. During that period, Laws prepared fraudulent returns for clients that reported false wages and business incomes to increase the clients’ refunds. Laws charged additional fees to prepare false returns with fees occasionally exceeding $1,000. Laws also filed a false personal income tax return for 2014 and did not file tax returns reporting his income for 2015 through 2019, despite having an obligation to do so. Laws intended to cause a tax loss to the IRS of $2,934,891.
Laws is scheduled to be sentenced on Oct. 20, 2021. Laws faces a statutory maximum sentence of three years in prison for assisting in the preparation of a false tax return and three years in prison for filing a false personal income tax return, as well as a period of supervised release, restitution and monetary penalties. Laws agreed in his plea agreement to pay restitution to the IRS in the amount of $184,072. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Brian Flanagan and Kevin Schneider of the Tax Division and Assistant U.S. Attorney Cliff Barrett of the Middle District of North Carolina are prosecuting the case.
Cabarrus County Man Sentenced to Prison for Drug Trafficking and Firearm OffensesRead the Press Release
GREENSBORO, NC - Martin William Luther Hamilton, of Kannapolis, North Carolina, was sentenced today to 180 months in prison for distribution of fentanyl and possession of a firearm by a felon.
According to court documents, the Kannapolis Police Department received information from a confidential source that Hamilton was storing narcotics and firearms at his apartment at the Vibe at Kellswater Apartment Homes in Kannapolis. In February 2020, investigators conducted surveillance and a subsequent trash pull from Hamilton’s apartment complex after observing him discarding two trash bags from his truck into a public trash compactor. Contents of the bags later tested positive for traces of cocaine prompting the investigators to obtain search warrants for Hamilton’s truck and apartment.
On February 13, 2020, investigators executed the search warrants. A search of the apartment yielded large quantities of suspected heroin, suspected crack cocaine, and suspected cocaine hydrochloride, as well as a small amount of marihuana, numerous prescription pills, and supplies commonly used in the manufacturing of crack cocaine. A large amount of U.S. currency and a Glock .40 caliber firearm were also located in the apartment. The suspected heroin and cocaine were sent to the U.S. Customs and Border Protection Laboratories and Scientific Services Directorate in Savannah, Georgia, which later confirmed that various quantities of the substances contained fentanyl, cocaine, cocaine base, benzocaine, cocaine hydrochloride or mixtures thereof.
Hamilton, age 38, was charged with one count of possession with intent to distribute 280 grams or more of cocaine base, one count of possession with intent to distribute 400 grams or more of fentanyl, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of felon in possession of a firearm. On November 11, 2020, Hamilton pled guilty to one count of possession with intent to distribute 400 grams or more of fentanyl and one count of felon in possession of a firearm.
Hamilton was a convicted felon at the time of these offenses, having been convicted of Accessory After the Fact to Second Degree Murder, Assault with a Deadly Weapon with Intent to Kill, Discharging a Weapon Into an Occupied Dwelling or Moving Vehicle, Common Law Robbery, Second Degree Kidnapping, and Attempted Robbery with a Dangerous Weapon in 2011 in the Superior Court of Cabarrus County. Accordingly, at sentencing, the Court determined that Hamilton was an Armed Career Criminal.
In addition to the term of imprisonment, United States District Judge Loretta C. Biggs ordered Hamilton to serve five years of supervised release and to pay a $200 special assessment to the United States.
Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina, made the announcement. The case was investigated by Homeland Security Investigations, along with the Kannapolis Police Department, and the federal Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant U.S. Attorney Craig M. Principe.
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