Middle District of North Carolina
Press releases recorded for this federal judicial district.
Davidson Duo Sentenced in Counterfeit Currency CaseRead the Press Release
GREENSBORO, N.C. - Two Davidson County residents were sentenced today in federal court for their roles in conspiring to defraud the United States, in violation of Title 18, United States Code, Section 371, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
JAMES DAVID SHORES, age 37, and JESSICA ROSE ALFORD, age 22, were sentenced by United States District Court Judge Catherine C. Eagles in Greensboro. According to court documents, SHORES and ALFORD conspired to produce and pass counterfeit United States currency. The two used the counterfeit currency to purchase items from retail stores, such as Lowe’s Home Improvement and Home Depot, throughout the state of North Carolina.
SHORES was sentenced to 60 months in prison and three years of supervised release. The Court also ordered SHORES to pay $241,160 in restitution. The Court sentenced ALFORD to 27 months in prison along with three years of supervised release. ALFORD, who joined the conspiracy after SHORES, was also ordered to pay $212,880 in restitution.
U.S. Attorney Martin and Special Agent in Charge of the Charlotte Field Office, Reginald Dematteis II of the United States Secret Service thanked special agents of United States Secret Service, who conducted the investigation, and Assistant U.S. Attorney Tanner Kroeger, who prosecuted the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Winston-Salem Man Sentenced to 5 Years in Prison for Middle-Man Role in Online Fraud Scheme ConspiracyRead the Press Release
GREENSBORO, N.C. - A Winston-Salem man was sentenced to 60 months in federal prison on September 4, 2020, for his role in multiple Internet-based schemes, announced United States Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court documents, James Ragland, age 29, acted in at least eight different schemes to obtain funds by wire belonging to victims primarily in the United States and then launder the proceeds.
Those schemes included:
• Business Email Compromise (“BEC”), a sophisticated scam targeting companies through email to send funds by wire transfer. After the fraudulent wire transfers are completed, co-conspirators rapidly drain the bank accounts and launder the criminal proceeds, in order to obtain money before the fraudulent transactions are detected and potentially reversed.
• “Romance scams,” in which victims on online dating websites are convinced to send financial assistance by fraudsters posing as paramours in need.
• Account takeover schemes, which involve means such as computer intrusion to gain control of a victim’s financial account. Those funds are then wire-transferred into accounts held by conspirators within the scheme.
Ragland was not alleged to be the person conducting the BEC, romance scams, or account takeover schemes, but he is alleged to have conspired with those who conducted the schemes, likely located in West Africa. Ragland received criminal proceeds into bank accounts he controlled, and would then cash out and launder those proceeds, directly and by recruiting others into the activity.
Ragland’s accounts received funds from victims of fraud, including:
• $56,593.90 from a single mother in California, intended for the purchase of a home;
• A Missouri woman’s life savings of $40,000, lost in romance fraud;
• $151,330.17 from a BEC real estate closing fraud in Florida;
• $59,985.00 in an unauthorized wire transfer from a Canadian business;
• $10,000 from the account takeover scheme involving a New Jersey couple; and
• $96,584.76 in a BEC real estate closing fraud in California.
Ragland pleaded guilty on November 18, 2019, to one count of conspiracy to launder money, in violation of 18 U.S.C. § 1956(h); one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; and ten counts of engaging in monetary transactions in property derived from specified unlawful activity, in violation of 18 U.S.C. §§ 1957 and 2.
In addition to the term of imprisonment, U.S. District Judge William L. Osteen, Jr., ordered Ragland to serve a 3-year term of supervised release and pay $312,014.18 in restitution to the victims of the schemes. Ragland is also subject to a forfeiture money judgment in the amount of $369,464.35.
“We are going after those who use the Internet to scam people, especially our elders. This defendant was a critical player in a large fraud conspiracy. He moved money through bank accounts to avoid fraud controls and get it overseas, handsomely profiting in the process,” said U.S. Attorney Martin. “Fraudsters who imagine themselves safe behind their computers should take notice—the Department of Justice is focused on you.”
“It is appalling to think anyone would purposely swindle innocent people to steal money in an instant, the victims worked their entire lives to make. The internet can be a dangerous place, always make sure you know exactly who you are communicating with and never send money to someone you have not met in person. Sadly, there are people who make a living preying off those who are too trusting or who don't always take those extra steps online to make sure they are safe,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
This case was investigated by the Federal Bureau of Investigation’s Cyber Squad, and prosecuted by Anand Ramaswamy, Cybercrime Prosecutor for the Middle District of North Carolina.
Additional information about common scams and online safety may be found on the FBI’s website.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at http://www.justice.gov/Celebrating150Years.
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North Carolina Man Sentenced to 15 Months in Tax Fraud CaseRead the Press Release
GREENSBORO, N.C. – A Greensboro health care services provider was sentenced in federal court in Greensboro to 15 months in prison for tax offenses, announced U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina and Special Agent in Charge Matthew D. Line of the Internal Revenue Service-Criminal Investigation (IRS-CI).
JAVONDELL R. STALLINGS, 47, of Whitsett, N.C., was the chief executive officer of Step By Step Care, Inc. In October 2019, STALLINGS pled guilty to one count of filing a false tax return in violation Title 26, United States Code, Section 7206(1).
According to court documents, STALLINGS owned and operated Step By Step Care in Greensboro since 2005. Step By Step Care provided behavioral healthcare services and substance abuse treatment to patients. On or about March 24, 2013, STALLINGS submitted a materially false personal income tax return to the IRS for calendar year 2012.
On September 3, 2020, United States District Judge William L. Osteen, Jr., sentenced STALLINGS to 15 months in prison and one year of supervised release. During the sentencing hearing, Judge Osteen also found that STALLINGS failed to pay employment taxes between the end of 2012 and the end of 2014, and the Court considered that additional tax loss as relevant conduct when imposing a sentence. STALLINGS was ordered to pay $843,616 in restitution to the IRS.
The case was investigated by IRS-CI, and prosecuted by Assistant U.S. Attorney Tanner Kroeger.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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U.S. Attorney Matt Martin Recognizes Law Enforcement for Operation that Lead to Multiple Child Exploitation Arrests and the Rescue of Children from Sexual AbuseRead the Press Release
WINSTON-SALEM, NC - A man who pleaded guilty to transportation of child pornography was sentenced today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
Dustin Davis HAYNES, 34, of Lexington, North Carolina, pleaded guilty on March 2, 2020, to one count of transportation of child pornography. He was sentenced by Chief United States District Judge Thomas D. Schroeder to 65 months of imprisonment followed by 10 years of supervised release.
HAYNES was the first individual arrested after a Boone Police Department detective infiltrated a private group on a mobile messenger application dedicated to the sexual exploitation of children and the trafficking of child pornography. According to documents filed in the case, the detective, pretending to be a 14 year-old girl, convinced an administrator to add him to the group. Once accepted, the detective was able to gain access to additional similar private groups. Several days later, the detective and agents from the State Bureau of Investigation (SBI) and Homeland Security Investigations (HSI) executed a search warrant at HAYNES’s Lexington, North Carolina residence and arrested him.
Over the next several months, SBI, HSI, and the Boone Police Department detective worked to identify additional group members and sent leads throughout the country, and the world. Many of the offenders had taken significant steps to mask their identities. The investigative team engaged these offenders online and tricked them into revealing personal identifying information. In total, 38 leads were sent to various law enforcement entities. To date, 23 offenders have been arrested and 8 children have been rescued from sexually abusive situations. As an example, an Ohio man was quickly arrested and his 14 year-old daughter was rescued. He had been sexually abusing her for ten years. Another individual was arrested on an oil rig in the North Sea and his 5 year-old daughter was rescued.
“Protecting children is a high calling,” said U.S. Attorney Matt Martin. “The Boone Police Department, the NC SBI, and the Department of Homeland Security are answering the call. The excellent proactive work of the investigators in this case has undoubtedly changed victims’ lives for the better and safeguarded others. I am proud that an investigation that began here in North Carolina has resulted in such a positive impact across the country, and even abroad. This case is an example of the effective local, state, and federal law enforcement partnerships required to fully combat online child sexual exploitation. Such partnerships are the heart of the Internet Crimes Against Children [ICAC] Task Force and more necessary now than ever as we have recently seen an alarming year-over-year increase in CyberTipline reports from the National Center For Missing and Exploited Children [NCMEC]. It takes courage to confront depictions of unspeakable sexual abuse, often amounting to torture, in order to bring child sex offenders to justice. The investigators in this case deserve our deep gratitude.”
“Individuals who distribute child pornography steal the innocence of children and revictimize them each time the evidence of their exploitation is shared online,” said Homeland Security Investigations Charlotte Special Agent in Charge Ronnie Martinez. "This case shows HSI is actively working to identity and disrupt the trade of these illegal images, and also to identify and seek prosecution of the criminals who produce, possess, and distribute them.”
The Boone Police Department, North Carolina State Bureau of Investigation, and Homeland Security Investigations are all members of the North Carolina Internet Crimes Against Children (ICAC) Task Force. The case was investigated by Detective Jason Reid of the Boone Police Department; Assistant Special Agent in Charge Nathan Anderson and Lead Analyst Tiffany Pate of SBI; and Group Supervisor Aaron Chapman, Special Agent Patrick Wilhelm, Certified Forensic Analyst Amy Olsen, and Investigative Research Specialist Janice Morquecho of HSI.
The HAYNES case was prosecuted by Assistant United States Attorneys Eric L. Iverson and Whitney N. Shaffer. The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Federal Authorities Charge Nineteen with Voter FraudRead the Press Release
GREENSBORO, N.C. - Nineteen individuals have been charged with voter fraud and, in some instances, related offenses, announced United States Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court charging documents, each defendant voted in a federal election in 2016. One defendant also voted in 2018. Non-citizens are not eligible to register to vote or to vote in federal elections.
On August 31, 2020, a federal grand jury indicted seven individuals as follows:
Charged with violations of Title 18, United States Code, Sections 611(a) (voting by non-citizen), 911 (claim of U.S. citizenship by non-citizen), and 1015(f) (false statement in a voter registration application):
- Francisco Antonio-Aguirre, age 64, of Dobson, NC (1:20CR351);
- Roob Kaur Atar-Singh, age 57, of Raeford, NC (1:20CR349);
- Rosalva Negrete-Toledo, aka Rosalva Cortes, age 65, of Winston-Salem, NC
- (1:20CR342);
- Dave Delano Virgil, age 57, of Winston-Salem, NC (1:20CR339);
- Eloy Alberto Zayas-Berrier, 70, of Pelham, NC (1:20CR348);
Charged with violations of Title 18, United States Code, Sections 611(a) (voting by non-citizen), 1425(a) (procure naturalization contrary to law), 1546(a) (false statement in an immigration document), 1015(a) (false statement in naturalization proceeding), and 1001(a)(2) (false statement to federal agent):
- Emmanuel Olakunle Atoyebi, age 31, of Greensboro, NC (1:20CR347);
Charged with violations of Title 18, United States Code, Sections 611(a) (voting by non-citizen), 911 (claim of U.S. citizenship by non-citizen), 1015(f) (false statement in a voter registration application), 1425(a) (procure naturalization contrary to law), 1546(a) (false statement in an immigration document), and 1015(a) (false statement in naturalization proceeding):
- Mokhtar Qaid Ahmed Gulaimid, age 48, of Raeford, NC (1:20CR338).
In addition, on August 13, 2020, twelve individuals were charged by Information with violating Title 18, United States Code, Section 611(a), a misdemeanor, which prohibits non-citizen voting in elections held to elect federal officials. They are:
- Ismay Prudence Kathleen James, age 54, of Burlington, NC (1:20CR317);
- Donald Christian Martyn, age 44, of Durham, NC (1:20CR318);
- Chaim Pinto, age 68, of Raeford, NC (1:20CR319);
- John Andrew Rapsky, age 54, of Chapel Hill, NC (1:20CR320);
- Baijoo Pottakulath Thomas, age 58, of Durham, NC (1:20CR321);
- Shuqin Yin, age 54, of Landis, NC (1:20CR322);
- Chirong Yin Billings, aka Chirong Cummings, age 56, of McLeansville, NC (1:20CR323);
- Henry Alberto Araya-Vega, age 52, of Winston-Salem, NC (1:20CR324);
- Rufina Concho-Locklear, age 82, of Greensboro, NC (1:20CR325);
- Alberto Damaize-Job, aka Alberto Damaize, age 73, of Greensboro, NC (1:20CR326);
- Armando Nava-Juarez, aka Armando Nava, age 51, of Linwood, NC (1:20CR327); and
- Manuel Efrain Valladares, age 48, of Concord, NC (1:20CR328).
The charged offenses carry the following penalties upon conviction:
- Title 18, United States Code, Section 611(a) -- a maximum term of one year imprisonment, a fine not to exceed $100,000.00, or both.
- Title 18, United States Code, Section 911 -- a maximum term of three years imprisonment, a fine not to exceed $250,000.00, or both.
- Title 18, United States Code, Section 1001(a)(2) -- a maximum term of five years imprisonment, a fine not to exceed $250,000.00, or both.
- Title 18, United States Code, Sections 1015(a), (f) -- a maximum term of five years imprisonment, a fine not to exceed $250,000.00, or both.
- Title 18, United States Code, Section 1425(a) -- a maximum term of ten years imprisonment, a fine not to exceed $250,000.00, or both.
- Title 18, United States Code, Section 1546(a) -- a maximum term of ten years imprisonment, a fine not to exceed $250,000.00, or both.
Charging instruments such as Indictments and Informations merely allege that crimes have been committed. Each defendant is presumed innocent until proved guilty beyond a reasonable doubt.
These matters were investigated by the Department of Homeland Security, Homeland Security Investigations.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Two North Carolina Tax Preparers Indicted for False ReturnsRead the Press Release
WASHINGTON – A federal grand jury in Greensboro, North Carolina, returned an indictment today charging two tax preparers with conspiring to defraud the United States and assisting in the preparation of false client tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to the indictment, Karen Marie Jones owned Jones and Stone Taxes, a tax preparation business in Durham, North Carolina. From 2012 through 2017, Jones and Audrey Renatta Odom allegedly conspired to falsify clients’ tax returns by fabricating education expenses that clients did not incur, in an effort to increase refunds to be paid by the IRS. Jones, Odom, and others allegedly charged some clients up to $3,000 for preparing their return.
If convicted, Jones and Odom each face a maximum sentence of five years in prison for conspiracy and three years in prison on each count of aiding and assisting in the preparation of a false tax return. The defendants also face a period of supervised release, restitution, and monetary penalties.
An indictment or information merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation who conducted the investigation, and Assistant Chief Todd Ellinwood and Trial Attorney Kavitha Bondada of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Two North Carolina Tax Preparers Indicted for False ReturnsRead the Press Release
A federal grand jury in Greensboro, North Carolina, returned an indictment today charging two tax preparers with conspiring to defraud the United States and assisting in the preparation of false client tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to the indictment, Karen Marie Jones owned Jones and Stone Taxes, a tax preparation business in Durham, North Carolina. From 2012 through 2017, Jones and Audrey Renatta Odom allegedly conspired to falsify clients’ tax returns by fabricating education expenses that clients did not incur, in an effort to increase refunds to be paid by the IRS. Jones, Odom, and others allegedly charged some clients up to $3,000 for preparing their return.
If convicted, Jones and Odom each face a maximum sentence of five years in prison for conspiracy and three years in prison on each count of aiding and assisting in the preparation of a false tax return. The defendants also face a period of supervised release, restitution, and monetary penalties.
An indictment or information merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation who conducted the investigation, and Assistant Chief Todd Ellinwood and Trial Attorney Kavitha Bondada of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Man Pleads Guilty to COVID-19 Relief Fraud SchemesRead the Press Release
WASHINGTON – A North Carolina man pleaded guilty today to perpetrating three schemes between March and July 2020 connected to the COVID-19 pandemic, through which he defrauded consumers and the federal government’s relief programs.
Brandon Lewis, 34, of Greensboro, North Carolina, pleaded guilty to a criminal information charging two counts of wire fraud and one count of making false statements to the Small Business Administration (SBA) before U.S. District Judge Catherine C. Eagles of the Middle District of North Carolina. Sentencing has been scheduled for Nov. 30, 2020 before Judge Eagles.
“Brandon Lewis today admitted to a wide range of brazen schemes specifically designed to profit illegally from the COVID-19 pandemic by defrauding scores of frightened consumers and small business owners desperate for a financial lifeline,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The department and our law enforcement partners will continue to aggressively pursue and hold accountable those who seek to illegally exploit the ongoing national emergency for their own personal benefit at the expense of hardworking Americans and businesses.”
“In the midst of a pandemic and as the economy suffered, this defendant lined his pockets by cheating online customers, small businesses, and, ultimately, all taxpayers. Stealing from people seeking basic health and cleaning supplies while under stay at home orders, and from entrepreneurs struggling to keep their businesses afloat, may be the nadir of fraudulent conduct,” said U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina. “I commend the excellent coordinated efforts of IRS Criminal Investigation, U.S. Postal Inspection Service, the Small Business Administration Inspector General, and the Treasury Inspector General. We will aggressively investigate and prosecute anyone who tries to profit by preying on people during this pandemic.”
“This is another example of greed controlling one’s actions. In a time of crisis and vulnerability in our country, Mr. Lewis promised assistance and help, but delivered more heartache and anxiety,” said Special Agent in Charge Matthew D. Line of the IRS-Criminal Investigation (IRS-CI). “I am proud of the way IRS-Criminal Investigation and our law enforcement partners quickly responded to these selfish criminal acts. We are committed to rooting out those seeking to defraud the hard-working citizens of this country during this pandemic.”
“The U.S. Postal Inspection Service will remain vigilant in bringing to justice anyone that seeks to defraud individuals during this pandemic,” said Inspector in Charge Tommy D. Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division. “These schemes highlights the importance of collaboration with our law enforcement partners to investigate and stop those seeking to take advantage of innocent victims.”
“It is unacceptable to defraud small businesses that are struggling during these unprecedented times,” said Special Agent in Charge Kevin Kupperbusch of the SBA's Office of Inspector General (OIG)’s Eastern Region. “Our office will relentlessly pursue fraudsters that use SBA’s programs for greed and personal gain. I want to thank the Justice Department and our law enforcement partners for their dedication and pursuit of justice.”
“In the midst of this pandemic, anyone who attempts to engage in illegal activity will be aggressively pursued,” said J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). “Our mission at TIGTA is to protect the integrity of the nation’s system of tax administration. We will continue to work with the IRS Criminal Investigation Division, the Small Business Administration Office of Inspector General, the Postal Inspection Service, the Department of Justice, and other law enforcement partners in this effort.”
As part of his guilty plea, Lewis admitted that he created the so-called “COVID-19 Relief Fund,” which he purportedly managed and oversaw as president and founder of Lewis Revenue Group LLC. Lewis promised desperate small business owners “guaranteed funds” of between $12,500 and $15,000 in exchange for an upfront “reservation” fee of between $995 and $1,200. Lewis falsely claimed that “the fund has up to $250 million available for small businesses” and provided a link for applicants to “purchase a reservation now.”
Lewis also created the so-called “American Relief Fund,” offering $5,000 grants to “every American affected by COVID-19.” Lewis promoted these “relief funds” through sophisticated marketing and social media campaigns, even using the official trademarks and logos of purported corporate sponsors without their permission. In reality, Lewis never had or distributed any funds through the “COVID-19 Relief Fund” or “American Relief Fund.” Between April and May 2020, Lewis defrauded small business owners of more than $100,000 through this scheme.
Lewis also admitted that, in mid-March 2020 as COVID-19-related stay-at-home orders across the United States began, he set up a website called “www.homekitchengoods.com,” for the online store, “Home Kitchen Goods,” where he claimed to sell pandemic-critical goods such as hand sanitizer, disinfectant wipes, paper towels, and toilet paper. In fact, however, during the five days between March 20 and March 24, 2020, Lewis received over 8,500 orders totaling more than $400,000, but never had or delivered any of the promised goods.
Lewis further admitted that, between April 1 and June 19, 2020, he lied to the SBA by fraudulently applying for and obtaining multiple loans and advances under the SBA’s EIDL program. Specifically, Lewis purchased more than 35 “aged, off-the-shelf” corporations, and then submitted approximately 68 fraudulent loan applications and non-refundable grant “advances” of up to $10,000 through the SBA-EIDL program.
This case was investigated by the USPIS, IRS-CI, SBA-OIG, and TIGTA. Trial Attorney David A. Stier of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Meredith C. Ruggles are prosecuting the case.
If you believe you are a victim in this case please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or email us at [email protected]. You may also may visit https://www.justice.gov/criminal-vns/case/brandon-lewis for additional information and updates as the case progresses.
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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North Carolina Man Pleads Guilty to COVID-19 Relief Fraud SchemesRead the Press Release
A North Carolina man pleaded guilty today to perpetrating three schemes between March and July 2020 connected to the COVID-19 pandemic, through which he defrauded consumers and the federal government’s relief programs.
Brandon Lewis, 34, of Greensboro, North Carolina, pleaded guilty to a criminal information charging two counts of wire fraud and one count of making false statements to the Small Business Administration (SBA) before U.S. District Judge Catherine C. Eagles of the Middle District of North Carolina. Sentencing has been scheduled for Nov. 30, 2020 before Judge Eagles.
“Brandon Lewis today admitted to a wide range of brazen schemes specifically designed to profit illegally from the COVID-19 pandemic by defrauding scores of frightened consumers and small business owners desperate for a financial lifeline,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The department and our law enforcement partners will continue to aggressively pursue and hold accountable those who seek to illegally exploit the ongoing national emergency for their own personal benefit at the expense of hardworking Americans and businesses.”
“In the midst of a pandemic and as the economy suffered, this defendant lined his pockets by cheating online customers, small businesses, and, ultimately, all taxpayers. Stealing from people seeking basic health and cleaning supplies while under stay at home orders, and from entrepreneurs struggling to keep their businesses afloat, may be the nadir of fraudulent conduct,” said U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina. “I commend the excellent coordinated efforts of IRS Criminal Investigation, U.S. Postal Inspection Service, the Small Business Administration Inspector General, and the Treasury Inspector General. We will aggressively investigate and prosecute anyone who tries to profit by preying on people during this pandemic.”
“This is another example of greed controlling one’s actions. In a time of crisis and vulnerability in our country, Mr. Lewis promised assistance and help, but delivered more heartache and anxiety,” said Special Agent in Charge Matthew D. Line of the IRS-Criminal Investigation (IRS-CI). “I am proud of the way IRS-Criminal Investigation and our law enforcement partners quickly responded to these selfish criminal acts. We are committed to rooting out those seeking to defraud the hard-working citizens of this country during this pandemic.”
“The U.S. Postal Inspection Service will remain vigilant in bringing to justice anyone that seeks to defraud individuals during this pandemic,” said Inspector in Charge Tommy D. Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division. “These schemes highlights the importance of collaboration with our law enforcement partners to investigate and stop those seeking to take advantage of innocent victims.”
“It is unacceptable to defraud small businesses that are struggling during these unprecedented times,” said Special Agent in Charge Kevin Kupperbusch of the SBA's Office of Inspector General (OIG)’s Eastern Region. “Our office will relentlessly pursue fraudsters that use SBA’s programs for greed and personal gain. I want to thank the Justice Department and our law enforcement partners for their dedication and pursuit of justice.”
“In the midst of this pandemic, anyone who attempts to engage in illegal activity will be aggressively pursued,” said J. Russell George, Treasury Inspector General for Tax Administration (TIGTA). “Our mission at TIGTA is to protect the integrity of the nation’s system of tax administration. We will continue to work with the IRS Criminal Investigation Division, the Small Business Administration Office of Inspector General, the Postal Inspection Service, the Department of Justice, and other law enforcement partners in this effort.”
As part of his guilty plea, Lewis admitted that he created the so-called “COVID-19 Relief Fund,” which he purportedly managed and oversaw as president and founder of Lewis Revenue Group LLC. Lewis promised desperate small business owners “guaranteed funds” of between $12,500 and $15,000 in exchange for an upfront “reservation” fee of between $995 and $1,200. Lewis falsely claimed that “the fund has up to $250 million available for small businesses” and provided a link for applicants to “purchase a reservation now.”
Lewis also created the so-called “American Relief Fund,” offering $5,000 grants to “every American affected by COVID-19.” Lewis promoted these “relief funds” through sophisticated marketing and social media campaigns, even using the official trademarks and logos of purported corporate sponsors without their permission. In reality, Lewis never had or distributed any funds through the “COVID-19 Relief Fund” or “American Relief Fund.” Between April and May 2020, Lewis defrauded small business owners of more than $100,000 through this scheme.
Lewis also admitted that, in mid-March 2020 as COVID-19-related stay-at-home orders across the United States began, he set up a website called “www.homekitchengoods.com,” for the online store, “Home Kitchen Goods,” where he claimed to sell pandemic-critical goods such as hand sanitizer, disinfectant wipes, paper towels, and toilet paper. In fact, however, during the five days between March 20 and March 24, 2020, Lewis received over 8,500 orders totaling more than $400,000, but never had or delivered any of the promised goods.
Lewis further admitted that, between April 1 and June 19, 2020, he lied to the SBA by fraudulently applying for and obtaining multiple loans and advances under the SBA’s EIDL program. Specifically, Lewis purchased more than 35 “aged, off-the-shelf” corporations, and then submitted approximately 68 fraudulent loan applications and non-refundable grant “advances” of up to $10,000 through the SBA-EIDL program.
This case was investigated by the USPIS, IRS-CI, SBA-OIG, and TIGTA. Trial Attorney David A. Stier of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Meredith C. Ruggles are prosecuting the case.
If you believe you are a victim in this case please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or email us at [email protected]. You may also may visit https://www.justice.gov/criminal-vns/case/brandon-lewis for additional information and updates as the case progresses.
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.
North Carolina Man Charged with COVID-19 Relief FraudRead the Press Release
WASHINGTON – A North Carolina man was charged by criminal complaint unsealed today for fraudulently seeking more than $414,000 in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina, Treasury Inspector General for Tax Administration (TIGTA) J. Russell George, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation, Officer of Inspector General (FDIC OIG), and Special Agent in Charge Michael J. De Palma of the IRS Criminal Investigation (CI) Miami Field Office made the announcement.
David Christopher Redfern, 31, of Trinity, North Carolina, was charged by criminal complaint filed in the Middle District of North Carolina with one count of wire fraud and one count of bank fraud. Redfern was arrested this morning and made his initial appearance this afternoon before U.S. Magistrate Judge L. Patrick Auld of the Middle District of North Carolina.
The complaint alleges that Redfern, through a company called Wilder Effects LLC (Wilder Effects) that he formed in January 2020, fraudulently applied for two EIDLs and a PPP loan between April and June of this year. The PPP loan application was supported by falsified documents. The false documentation included a fake IRS filing that purported to be Wilder Effects’ Employer’s Quarterly Federal Tax Return for the first quarter of 2020, showing that the company paid wages to 20 employees, when in reality the IRS has no record of such a filing. The complaint further alleges that EIDL and PPP loan proceeds were withdrawn in cash or transferred to Redfern’s personal bank account. As a result of suspected fraud alerts, Wilder Effects’ bank account was frozen and approximately $402,000 of the over $414,000 in EIDL and PPP loan proceeds were recovered.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by TIGTA, FDIC OIG, and IRS CI. Trial Attorney Jessee Alexander-Hoeppner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Meredith Ruggles for the Middle District of North Carolina are prosecuting the case. The Justice Department thanks the SBA OIG for their support and assistance.
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 (BCDF) hotline by phone (1-866-720-5721 or via an online reporting form available at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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North Carolina Man Charged with COVID-19 Relief FraudRead the Press Release
A North Carolina man was charged by criminal complaint unsealed today for fraudulently seeking more than $414,000 in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina, Treasury Inspector General for Tax Administration (TIGTA) J. Russell George, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation, Officer of Inspector General (FDIC OIG), and Special Agent in Charge Michael J. De Palma of the IRS Criminal Investigation (CI) Miami Field Office made the announcement.
David Christopher Redfern, 31, of Trinity, North Carolina, was charged by criminal complaint filed in the Middle District of North Carolina with one count of wire fraud and one count of bank fraud. Redfern was arrested this morning and made his initial appearance this afternoon before U.S. Magistrate Judge L. Patrick Auld of the Middle District of North Carolina.
The complaint alleges that Redfern, through a company called Wilder Effects LLC (Wilder Effects) that he formed in January 2020, fraudulently applied for two EIDLs and a PPP loan between April and June of this year. The PPP loan application was supported by falsified documents. The false documentation included a fake IRS filing that purported to be Wilder Effects’ Employer’s Quarterly Federal Tax Return for the first quarter of 2020, showing that the company paid wages to 20 employees, when in reality the IRS has no record of such a filing. The complaint further alleges that EIDL and PPP loan proceeds were withdrawn in cash or transferred to Redfern’s personal bank account. As a result of suspected fraud alerts, Wilder Effects’ bank account was frozen and approximately $402,000 of the over $414,000 in EIDL and PPP loan proceeds were recovered.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by TIGTA, FDIC OIG, and IRS CI. Trial Attorney Jessee Alexander-Hoeppner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Meredith Ruggles for the Middle District of North Carolina are prosecuting the case. The Justice Department thanks the SBA OIG for their support and assistance.
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 (BCDF) hotline by phone (1-866-720-5721 or via an online reporting form available at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Chapel Hill Risk Consultant Pleads Guilty to Tax Fraud and Firearm ChargesRead the Press Release
GREENSBORO, N.C. - A North Carolina businessman from Chapel Hill pleaded guilty today to filing a false tax return and being a felon in possession of a firearm, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court filed documents, Charles Agee Atkins controlled and operated several risk consulting businesses, including Financial Engineering & Risk Management, LLC, Risk Assessment & Management, LLC, and Ram Omni, LLC. From 2011 through 2017, Atkins underreported the income that he received from these businesses on his tax returns, causing a tax loss of more than $380,000 to the Internal Revenue Service (IRS). Atkins also admitted that he failed to pay more than $420,000 in taxes he owed to the IRS for several previous years. All told, Atkins caused a tax loss of more than $800,000 to the IRS.
Atkins also pleaded guilty to being a felon in possession of a firearm. According to court documents, Atkins was convicted of tax fraud in 1988, and during a 2019 search warrant executed on Atkins’s Chapel Hill residence, federal agents found a 12 gauge shotgun, which Atkins could not legally possess because of his prior convictions.
U.S. District Judge Catherine Eagles will set sentencing at a later date. At sentencing, Atkins faces a maximum sentence of three years in prison on the tax charge and ten years in prison on the felon in possession charge. He also faces a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief Todd Ellinwood of the Tax Division and Assistant U.S. Attorney Tanner Kroeger, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Greensboro Man Sentenced to 103 Months Imprisonment for Possessing a Stolen FirearmRead the Press Release
GREENSBORO, N.C. - A Greensboro resident was sentenced today in federal court in Greensboro for knowingly possessing a stolen firearm, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
TEQUAN JAMEZ BARKLEY, age 31, was sentenced to a 103 month term of imprisonment by Senior United States District Judge N. Carlton Tilley, Jr. In addition to prison time, BARKLEY was ordered to serve three years of supervised release and to pay a special assessment of $100.00. BARKLEY pleaded guilty on February 3, 2020, to possession of a Smith & Wesson .38 caliber revolver, knowing and having reasonable cause to believe the firearm was stolen.
Court records show that on June 24, 2018, Sanford Police were investigating a shooting incident outside a nightclub when they received information about a gray Chevrolet Suburban seen near the nightclub. Police saw a gray Chevrolet Suburban traveling nearby, parking at a convenience store. BARKLEY was driving the vehicle, and he was arrested on unrelated outstanding warrants. After obtaining a search warrant for the vehicle, police found a loaded .38 caliber revolver on the front passenger seat under a plastic bag. The gun was reported stolen in Sanford in 2017. Police later obtained other warrants and conducted testing on the firearm, finding BARKLEY’S DNA on the gun.
The case was investigated by the Sanford Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Anand Ramaswamy.
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U.S. Attorney Matt Martin Celebrates 30th Anniversary of the Americans with Disabilities ActRead the Press Release
GREENSBORO, NC. - The U.S. Attorney’s Office for the Middle District of North Carolina is proud to play a key role in the Department of Justice’s enforcement efforts under the Americans with Disabilities Act (ADA), as this year marks 30 years since the signing of the landmark legislation. The ADA was signed into law on July 26, 1990, and is the nation’s preeminent civil rights law for providing access and equal opportunity for people with disabilities.
At the signing ceremony for the ADA in 1990, George H.W. Bush remarked: “Together, we must remove the physical barriers we have created and the social barriers that we have accepted. For ours will never be a truly prosperous nation until all within it prosper.” To reach this goal, the Middle District of North Carolina has participated in the Barrier Free Healthcare Initiative, which focuses on equal access to medical services and facilities for individuals with disabilities; Project Civic Access, a wide-ranging effort to eliminate physical and communication barriers that prevent people with disabilities from participating fully in community life; and enforcement actions ensuring that individuals with service animals have equal access to public accommodations.
“We have heeded President Bush’s call to remove physical and social barriers for those with disabilities. And we will continue to do this work through cooperation when we can and through litigation when we must,” U.S. Attorney Martin said. “Our office and the Department of Justice are committed to enforcing the ADA and dismantling barriers to equal access. We want all Americans to be able to develop their talents and participate in community life.”
Over the past 30 years, our country has undertaken the hard work of changing attitudes about disability, tearing down barriers to equality, and dismantling the systems that have historically excluded people with disabilities. Today, we commemorate the many ways that the ADA has transformed our society—by replacing exclusion with access, segregation with integration, and limitations with self-determination. The ADA has advanced the promise of the American dream, ensuring that people with disabilities can write their own stories. And as a society, we are better and stronger because of the contributions that people with disabilities make.
For more information about the 30th Anniversary of the ADA, please visit www.ada.gov. To file a complaint with the Department, please visit the Civil Rights Division’s portal at https://civilrights.justice.gov/report/. For more information about the ADA, call the Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Forsyth County Resident Charged with Federal Gun, Drug Violations Following a High Speed ChaseRead the Press Release
GREENSBORO, N.C. – Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that DARTAGNAN BLAZE SURRATT, age 21, of Winston-Salem, NC, was charged with violations of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), felon in possession of a firearm, Title 21, United States Code, Section 841(a)(1) and (b)(1)(D), possession with intent to distribute marihuana, and Title 18, United States Code, Sections 924(c)(1)(A)(i), possession of firearms in furtherance of a drug trafficking crime.
The Complaint alleges that on June 7, 2020, at approximately 2:30 a.m., a Forsyth County Sheriff’s Office deputy attempted to stop a black 2019 Buick Cascada convertible for speeding on U.S. Highway 421 southbound in Lewisville, NC. The driver failed to stop, resulting in a high speed chase that ended in a crash, when the driver of the Buick failed to effectively reduce speed while exiting the highway and collided with a raised concrete median. The driver fled from the car, was caught nearby, and was identified as SURRATT.
According to the Complaint, when officers checked on a female passenger in the vehicle, the convertible top was down and officers could see an unsealed bottle of liquor on the floorboard and smell an odor of marihuana coming from the vehicle. Inside the car, officers found several ounces of marihuana, more than $7,000 in U.S. currency, and four firearms: a Ruger, model EC9, 9mm pistol, loaded with ammunition; a Romarm/Cugir Arms Factory, model WASR 10, 7.62x39mm caliber rifle; a Volunteer Enterprises Incorporated, model Commando Mark V, .45 caliber rifle, made into a pistol by taking the stock off, with an attached 30 round stick magazine; an Anderson Manufacturing, model AM-15, 5.56mm caliber rifle loaded with ammunition; and, three additional magazines. Officers also found fireworks, a digital scale and other items of drug paraphernalia, a set of handcuffs, a handcuff key, and an apparent protest sign inside the car. The investigation also developed photographic evidence of SURRATT posing with the Anderson Arms AM-15 rifle.
The Complaint also alleges that SURRATT has previously been convicted of a felony offense, punishable by more than one year imprisonment, and therefore could not lawfully possess a firearm. He was on state supervised probation for that prior felony at the time of these alleged offenses.
A detention hearing and preliminary hearing were held on July 14, 2020, and SURRATT was ordered detained while awaiting further proceedings in the case.
If convicted under Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), felon in possession of a firearm, SURRATT may be sentenced to a maximum of 10 years imprisonment, a fine not to exceed $250,000.00, or both, and 3 years of supervised release. If convicted of the drug charge under Title 21, United States Code, Section 841(a)(1) and (b)(1)(D), SURRATT may be sentenced to not more than 5 years imprisonment, a fine not to exceed $250,000.00, or both, and not less than 2 years of supervised release. If convicted under Title 18, United States Code, Sections 924(c)(1)(A)(i), possession of firearms in furtherance of a drug trafficking crime, SURRATT may be sentenced to imprisonment for not less than 5 years and not more than life (to run consecutively with any other term of imprisonment), a fine not to exceed $250,000.00, or both, and not more than 5 years of supervised release.
A criminal complaint is merely an allegation, and each defendant is presumed innocent unless and until proven guilty.
The case has been investigated by the Forsyth County Sheriff’s Office and the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Durham Man Sentenced to 8 Years in Prison for Transportation of Child PornographyRead the Press Release
WINSTON-SALEM, N.C. – A man who pleaded guilty to transportation of child pornography was sentenced today to eight years in prison, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
BRIAN ROBERT ACKERMAN, 39, of Durham, North Carolina, pleaded guilty on December 13, 2019, to one count of transportation of child pornography. He was sentenced by Chief United States Chief District Judge Thomas D. Schroeder to 96 months of imprisonment followed by 15 years of supervised release.
ACKERMAN came to law enforcement’s attention following a report to the Orange County Sheriff’s Office and an illicit chat conversation with an undercover FBI agent, during which ACKERMAN condoned and encouraged the undercover FBI agent to sexually abuse his purported 9-year-old daughter. Further, ACKERMAN sent child pornography to at least three individuals: an Orange County woman, the undercover FBI agent, and a person purporting to be a 16 year-old girl. The files depicted the sexual abuse of prepubescent children and at least one toddler. At the time of his arrest, investigators found ACKERMAN in possession of 41 images and 49 videos depicting child pornography.
This case was investigated by the Federal Bureau of Investigation’s Child Exploitation Task Force and the Durham Police Department with assistance from the Orange County Sheriff’s Office. All are members of the North Carolina Internet Crimes Against Children (ICAC) Task Force.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse, and prosecuted by Assistant United States Attorneys Eric L. Iverson and Whitney N. Shaffer. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Rockingham Man Sentenced to 5 Years in Federal Prison for Throwing Molotov Cocktail into a Laurinburg ResidenceRead the Press Release
WINSTON-SALEM, N.C. - On Wednesday, June 24, 2020, a judge in federal district court sentenced former Rockingham resident A D MCRAE IV, to a 60-month prison term for throwing a Molotov cocktail into an occupied residence, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
MCRAE, age 30, pleaded guilty on December 4, 2019, to one count of malicious use of explosive materials.
According to documents filed with the Court, two people were inside a Laurinburg residence on March 1, 2017, when an ignited Molotov cocktail came through a bedroom window. The glass bottle landed on a pile of clothing, failing to break and explode, and one of the occupants was able to extinguish the wick of the device. MCRAE had been seen in the area 30-45 minutes prior to the incident. Police responded to the scene that evening, and returned a week later with agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE), finding a second Molotov cocktail under the residence. An examination of that second device yielded a fingerprint left by MCRAE. Under federal law, Molotov cocktails are classified as improvised incendiary bombs, which are destructive devices prohibited under federal law.
The Honorable Judge Stephanie D. Thacker, a judge from the Court of Appeals for the Fourth Circuit, sitting by designation, imposed a 5-year prison term, to be followed by a 3-year period of supervised release.
The case was investigated by the Laurinburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Anand Ramaswamy.
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Greensboro Business Owner Sentenced to Prison for Employment Tax FraudRead the Press Release
WASHINGTON – A Greensboro, North Carolina, business owner was sentenced to 18 months in prison yesterday for failing to pay employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to documents and information provided to the court, Elizabeth Wood, 40, and her mother Rebecca Adams, 57, operated a temporary staffing businesses in Greensboro under the names A & R Staffing Solutions, Inc., Wood Executive Services Inc., and Adams Staffing Enterprises Inc. Wood and her mother withheld federal and state taxes from employees’ paychecks but did not pay those taxes over to the IRS or the State of North Carolina. In 2015, Wood pleaded guilty to embezzling employee state tax withholdings and was sentenced to prison. After her release, Wood resumed her role at the staffing business where she continued to withhold federal taxes from employees’ paychecks, but again did not pay those taxes over to the IRS. She also did not file with the IRS the required quarterly payroll tax return.
On Feb. 5, 2020, Wood and her mother, Adams, pleaded guilty to failing to pay over employment taxes. Adams is scheduled to be sentenced on July 9, 2020.
In addition to the term of imprisonment, U.S. Senior District Judge N. Carlton Tilley Jr., ordered Wood to serve three years of supervised release and to pay approximately $2,338,766 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kevin Schneider of the Tax Division and Assistant U.S. Attorney Frank Chut, who are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Greensboro Business Owner Sentenced to Prison for Employment Tax FraudRead the Press Release
A Greensboro, North Carolina, business owner was sentenced to 18 months in prison yesterday for failing to pay employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to documents and information provided to the court, Elizabeth Wood, 40, and her mother Rebecca Adams, 57, operated a temporary staffing businesses in Greensboro under the names A & R Staffing Solutions, Inc., Wood Executive Services Inc., and Adams Staffing Enterprises Inc. Wood and her mother withheld federal and state taxes from employees’ paychecks but did not pay those taxes over to the IRS or the State of North Carolina. In 2015, Wood pleaded guilty to embezzling employee state tax withholdings and was sentenced to prison. After her release, Wood resumed her role at the staffing business where she continued to withhold federal taxes from employees’ paychecks, but again did not pay those taxes over to the IRS. She also did not file with the IRS the required quarterly payroll tax return.
On Feb. 5, 2020, Wood and her mother, Adams, pleaded guilty to failing to pay over employment taxes. Adams is scheduled to be sentenced on July 9, 2020.
In addition to the term of imprisonment, U.S. Senior District Judge N. Carlton Tilley Jr., ordered Wood to serve three years of supervised release and to pay approximately $2,338,766 in restitution to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kevin Schneider of the Tax Division and Assistant U.S. Attorney Frank Chut, who are prosecuting the case.
COVID-19 ALERT: Fraudulent Facemask FlyersRead the Press Release
GREENSBORO, NC — U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina today urged the public to be aware regarding fraudulent postings, cards, or flyers on the internet regarding the Americans with Disabilities Act (ADA) and the use of face masks due to the COVID-19 pandemic, many of which include the United States Department of Justice’s seal. An example of these cards appears below:
These postings, cards, and flyers were not issued by the Department of Justice and are not endorsed by the Department.
“Do not be fooled by the chicanery and misappropriation of the DOJ eagle,” said U.S. Attorney Martin. “These cards do not carry the force of law. The ‘Freedom to Breathe Agency,’ or ‘FTBA,’ is not a government agency.”
U.S. Attorney Martin urges the public not to rely on the information contained in these postings and flyers and to visit http://www.ADA.gov for official information about the Americans with Disabilities Act. For more information and technical assistance about the ADA, please contact the ADA Information Line at 800-514-0301 (voice) and 800-514-0383 (TTY).
The Centers for Disease Control and Prevention recommends wearing cloth facial coverings in areas where social distancing guidelines may be difficult to maintain, especially in areas of significant community-based transition.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Department of Justice Announces $42 Million to Combat Illegal Manufacture and Distribution of Methamphetamine and OpioidsRead the Press Release
GREENSBORO, NC — The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) today announced nearly $42 million in funding to support state-level law enforcement agencies in combating the illegal manufacturing and distribution of methamphetamine, heroin, fentanyl, carfentanil, and prescription opioids, of which $2,062,770 has been awarded to the North Carolina Department of Public Safety.
“The scourge of opioid and methamphetamine use continues to take a devastating toll on our nation’s communities,” said COPS Office Director Phil Keith. “By providing these resources to law enforcement to help combat the further spread, the COPS Office is demonstrating our commitment to this Administration’s priority of reducing drug use and protecting our citizens from this public health and safety crisis.”
“Today’s announcement underscores the federal commitment to addressing the ravages of opioid and methamphetamine use,” said U.S. Attorney Matt Martin of the Middle District of North Carolina. “The U.S. Department of Justice will continue to support state and local efforts to address this epidemic and aggressively prosecute the criminals who inject these poisons into our communities.”
Drug overdose deaths and opioid-involved deaths continue to increase in the United States. Deaths from drug overdose are up among both men and women, all races, and adults of nearly all ages, with more than three out of five drug overdose deaths involving opioids. More than 130 people die every day in the United States after overdosing on opioids, while methamphetamine continues to be one of the most commonly misused stimulant drugs in the world and is the drug that most contributes to violent crime.
The COPS Office is awarding more than $29.7 million in grant funding to 14 state law enforcement agency task forces through the Anti-Heroin Task Force Program (AHTF). AHTF provides three years of funding directly to state-level law enforcement agencies with multijurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high per capita rates of primary treatment admissions for heroin, fentanyl, carfentanil, and
other opioids. This funding will support the location or investigation of illicit activities through statewide collaboration related to the distribution of heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.
Through the COPS Anti-Methamphetamine Program (CAMP), the COPS Office is also awarding $12 million to 12 state law enforcement agencies. These state agencies have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures. State agencies are being awarded three years of funding through CAMP to support the location or investigation of illicit activities related to the manufacture and distribution of methamphetamine, including precursor diversion, laboratories, or methamphetamine trafficking.
The AHTF and CAMP funding has a tremendous impact on state investigative and seizure work. During the five month period between October 2019 and February 2020, current AHTF grantees reported the seizure of over $4 million in cash and 1,213 firearms. Similarly, for CAMP, grantees reported seizures of more than $7 million in cash and 1,577 firearms.
The complete list of Anti-Heroin Task Force Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/ahtf-award
The complete list of COPS Anti-Methamphetamine Program award recipients, including funding amounts, can be found here: https://cops.usdoj.gov/camp-award
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office 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 approximately 135,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Fayetteville Man Pleads Guilty to Obtaining VA Benefits through FraudRead the Press Release
WINSTON-SALEM, N.C. - Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that WILLIE DOSHER CAIN pleaded guilty to a felony count of theft of government funds related to healthcare fraud.
CAIN, age 73, of Fayetteville, N.C., pleaded guilty before Chief United States District Judge Thomas D. Schroeder in federal court in Winston-Salem, to one count of theft of government funds, in violation of 18 U.S.C. § 641. CAIN also agreed to the forfeiture of $155,041.30, a condominium located in Carolina Beach, a Toyota Sienna van, and a mobility scooter.
According to documents filed with the court, CAIN, a US Army and Fayetteville Police Department veteran, represented to the VA that as a result of shrapnel wounds sustained in Vietnam in 1965, he had suffered the loss of use of both legs, as well as loss of bowel and bladder control, that he was unable to perform daily activities such as dressing and bathing without assistance, and that he was dependent on a wheelchair or motorized scooter for mobility. Filed documents further state, however, that CAIN in fact maintained an active lifestyle throughout this time, including working as a firearms and concealed carry instructor, enjoying beach activities, playing basketball, dancing, and attending social events. He also bought a condominium at Carolina Beach on the third floor of a building which had no elevator. The investigation revealed that as a result of his false claims, CAIN received hundreds of thousands of dollars of VA benefits to which he was not entitled, in the form of direct payments for aid and attendance, modifications to his home, and the purchase and adaptation of vehicles.
The defendant faces a maximum penalty of ten years imprisonment, a fine of up to $250,000, or both, and a term of supervised release of not more than three years. Sentencing will occur in Winston-Salem on September 29, 2020 at 09:30am.
The case was investigated by the Veterans Affairs – Office of the Inspector General. The case was prosecuted by Assistant United States Attorneys Frank J. Chut, Jr. and Meredith Ruggles.
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Yadkinville Man Sentenced to 26.5 Years in Federal Prison for Armed Robbery and Arson at Clemmons Convenience StoreRead the Press Release
GREENSBORO, N.C. - On Thursday, June 11, 2020, a judge in federal district court sentenced a High Point resident, DAVID CURTIS SMITH, to a 319-month prison term, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
SMITH, age 59, pleaded guilty on October 17, 2019, to all four charges in the Indictment, including Hobbs Act robbery, carjacking, use of a firearm during and in relation to a crime of violence, and arson.
Evidence in the records shows that on October 20, 2018, between approximately 9:30 and 9:45 p.m., SMITH and an accomplice entered the Stop and Shop Mart in Clemmons, North Carolina, as the store clerk was cleaning and preparing to close for the night. The accomplice told the clerk to open the cash register. When the clerk refused, SMITH brandished a pistol and told the clerk to do what they said. The clerk complied and opened the cash register. The clerk was held at gunpoint while the other suspect stole cash and over $1,000 in tobacco products. The suspects then bound the clerk’s hands and feet with zip ties and moved him to the back office. One of the suspects then doused the victim and the back office in diesel fuel. One of the suspects then lit a paper towel with a lighter and threw it onto the fuel. The two suspects then poured more diesel fuel onto the floor of the store and attempted to set the store on fire. The suspects then took the victim’s car keys. Prior to leaving, they locked the security gates at the front of the store, using a chain and padlock. One of the suspects stole the victim’s 2011 Ford pickup truck that was parked outside.
The store clerk was able to break the zip ties around his legs and get to the front door. After he saw the suspects leaving, he was able to get between the doors and the security gates to yell for help. Early in the morning of October 21, 2018, the clerk’s truck was located on an access ramp to Interstate 40 near Farmington Road and Rainbow Road. The interior of the vehicle was soaked with diesel fuel and there was material smoldering on the front seat and in the gasoline fill pipe.
SMITH and his accomplice were arrested on November 2, 2018, in Whytheville, Virginia.
At sentencing, United States District Court Judge Loretta C. Biggs imposed an aggregate 235-month prison term on three of the four counts, and an 84-month term for brandishing a weapon, to run consecutive to all prior sentences. SMITH was also ordered to pay $366,989.07 in restitution and to serve a 5-year period of federal supervised release.
The case was investigated by the Forsyth County Sheriff’s Office, Forsyth County Fire Marshal Office, North Carolina State Highway Patrol, Wythe County (Virginia) Sheriff’s Office, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorney Graham T. Green.
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Durham Tax Preparer Sentenced to 30 Months in Prison for Tax FraudRead the Press Release
WINSTON-SALEM, N.C. B Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that SASHA SHABLEY JACKSON was sentenced to 30 months of imprisonment for aiding and abetting the preparation of false tax returns.
JACKSON, age 33, of Durham, N.C., had pleaded guilty before Chief United States District Judge Thomas D. Schroeder in federal court in Winston-Salem on March 6, 2020, to one count of tax fraud, in violation of 26 U.S.C. § 7206(2). Chief Judge Schroeder sentenced JACKSON on June 9, 2020.
According to documents filed with the court, JACKSON owned and operated Top Notch Professional Tax Services, in Durham, North Carolina, preparing tax returns for clients from 2015 to 2019. During that time, she knowingly and willfully prepared and caused to be filed with the IRS income tax returns that were materially false. The false items including false dependents, false income, false education credits, and false fuel tax credits, all of which produced fraudulently inflated refunds. The IRS determined that the tax loss attributable to JACKSON’s misconduct is $1,196,263.
In addition to the active sentence, JACKSON was ordered to serve a one year term of supervised release, pay a fine of $10,000, and pay restitution in the amount of $1,196,263. The case was investigated by Internal Revenue Service – Criminal Investigations. The case was prosecuted by Assistant United States Attorney Tanner Kroeger.
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U.S. Attorney Matt Martin Recognizes Law Enforcement Partners for National Police WeekRead the Press Release
GREENSBORO, NC — In honor of National Police Week, U.S. Attorney Matt Martin recognizes the service and sacrifice of federal, state, local, and tribal law enforcement. The week will be observed Sunday, May 10 through Saturday, May 16, 2020.
“There is no more noble profession than serving as a police officer,” said Attorney General William P. Barr. “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted.”
“Sworn to protect and serve, police officers are guardians of our democracy,” said U.S. Attorney Matt Martin. “We refer to them as our ‘finest’ for a reason—because we hold them to high standards and they reflect our values of service, courage, and decency, especially as we battle COVID-19. We are privileged in the Middle District of North Carolina to have tremendous police officers at the local, state, and federal level. I hope all North Carolinians will take a moment this week to thank those on the thin blue line. Our society depends on their service.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. This year the COVID-19 pandemic has underscored law enforcement officers’ courage and unwavering devotion to the communities they swore to serve.
Based on data collected and analyzed by the FBI’s Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 89 law enforcement officers died nationwide in the line of duty in 2019, including two officers here in North Carolina.
Comprehensive data tables about these incidents and brief narratives describing most of the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2019.
The names of the fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial will be read on Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil. Because public events have been suspended as a result of COVID-19, the vigil will be livestreamed to the public at 8:00 PM (EDT). To register to view this free online event, please www.LawMemorial.org/webcast.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
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High Point Man Sentenced to 11.5 Years in Federal Prison for Firearm Offenses and Heroin TraffickingRead the Press Release
GREENSBORO, NC - On Monday, May 11, 2020, a judge in federal district court sentenced a High Point resident, JABRELL CRAIG SMITH, to a 138-month prison term, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
Following a three day trial in Greensboro in January 2020, the jury found SMITH, age 27, guilty on all four charges in the Indictment, including possession with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, knowingly possessing a firearm after previously being convicted of a felony offense, and knowingly possessing a unregistered firearm.
Evidence presented at trial showed that on May 29, 2017, at approximately 2:00 a.m., officers from the Greensboro Police Department’s Street Crimes Unit followed and approached a black Chevrolet Malibu in the parking lot of a gas station located at 3302 South Holden Road in Greensboro. Police found an Intratec Tec-9 9mm Luger firearm sticking out from under the front passenger seat where SMITH had been seated. When officers recovered the weapon, they noticed that a red dot sighting system situated on top of the weapon was turned on and that a round of live ammunition had been chambered, making the Tec-9 ready to fire. The magazine contained twenty-six additional rounds of live ammunition. In the door pocket of the front passenger seat, officers recovered a plastic baggie containing 3.32 grams of heroin. At trial, the government presented text messages, videos, and photographs to establish that SMITH possessed the heroin for the purpose of distribution and that he was previously familiar with, and had access to, the Tec-9. The Tec-9 had a modification, a forward grip attached to the frame of the weapon, which made it subject to additional regulation and registration in the National Firearms Registration and Transfer Record.
At sentencing, the United States District Court imposed an aggregate 138-month prison term on all of the charges and a 4-year period of federal supervised release.
The case was investigated by the Greensboro Police Department, the High Point Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorney John M. Alsup.
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Chapel Hill Couple Federally Charged in Elder Fraud Home Repair SchemeRead the Press Release
Greensboro, N.C. – Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that two individuals have been charged with conspiracy to defraud in a home repair scheme.
On April 30, 2020, JORGE ALBERTO GARCIA, also known as “Roberto Garcia” and “Alberto Garcia” (hereinafter “GARCIA”), age 38, and HELEN [NMN] SMITH-FLORES, also known as “Helen Smith” and “Helen Smith Flores” (hereinafter “SMITH-FLORES”), age 40, both of Chapel Hill, North Carolina, were charged in a criminal Complaint with conspiracy to commit wire fraud, that is, to devise a scheme and artifice to defraud and to obtain money and property by means of materially false and fraudulent pretenses, representations and promises.
“The allegations in the Complaint lay bare a depraved scheme: two individuals working in concert to take money from elderly and vulnerable people,” said U.S. Attorney Martin. “The defendants allegedly presented themselves as helpers and the victims trusted them, only to be left poorer, and still in need of repairs to the place where they should feel most secure--their homes. We should honor our elders, not deceive and defraud them. We applaud the law enforcement agencies whose diligent work and collaboration resulted in these charges.”
The Complaint alleges that from on or about September 2015 to and including April 2020, GARCIA and SMITH-FLORES 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.” 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 SMITH-FLORES), or issue the check directly to SMITH-FLORES who, in turn, deposited the checks into personal accounts in her name or that of her business, La Cacerola. SMITH-FLORES would then withdraw the money in cash and/or issue a cashier’s check made out to GARCIA. GARCIA and SMITH-FLORES 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.
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.
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 and SMITH-FLORES 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 SMITH-FLORES would return a small percentage of the monies paid for the project; and/or c) GARCIA or SMITH-FLORES would write a personal check to the contracting individual that would be returned by the issuing bank as lacking sufficient funds.
Review of records from bank accounts known to be controlled by GARCIA and/or SMITH-FLORES for the time period spanning February 2016 through November 2019 indicates that, as a result of the above-described scheme to defraud, GARCIA and SMITH-FLORES obtained a total of approximately $2,200,000 from more than fifty victims.
“It is difficult to fathom how Garcia and his wife could target, prey upon, and systematically rip off elderly victims without a second thought. Now, they can think long and hard about the hefty federal charges they face. The FBI will continue to try and identify as many victims as possible of their home improvement scheme,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
The FBI is seeking victims who may have been defrauded by GARCIA and SMITH-FLORES. If you believe you are a victim of or have been affected by this scheme, please go to [email protected] or call 1-800-CALL-FBI and make a report.
If convicted, each defendant faces a maximum term of 20 years imprisonment, a term of supervised release of not more than 3 years, a fine not to exceed $250,000.00, and a mandatory special assessment of $100.00.
GARCIA is currently in state custody serving a 90 day sentence for criminal contempt of a Consent Order signed May 16, 2017, which enjoined him from the practice of general contracting in North Carolina.
SMITH-FLORES was served with a summons and the Complaint in this matter today. She is scheduled to make an initial appearance in court in Greensboro on May 7, 2020, at 2:30 p.m.
A criminal complaint is merely an allegation, and each defendant is presumed innocent unless and until proven guilty.
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, Cary Police Department, and others. The case is being prosecuted by Assistant United States Attorney JoAnna G. McFadden.
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Rowan County Man Sentenced to 60 Month in Federal Prison for Drug OffenseRead the Press Release
GREENSBORO, N.C. - A resident of Salisbury, North Carolina, was sentenced today by a federal judge sitting in Greensboro on a charge of distributing heroin, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
RENNEL JEFFERY PARSON, JR., age 28, was sentenced to a 60 month term of imprisonment by United States District Judge William L. Osteen, Jr. In addition to prison time, PARSON was ordered to serve three years of supervised release and pay a special assessment of $100.00. PARSON pleaded guilty on January 6, 2020 to Count One of the Indictment.
Court records show that on June 23, 2017, and June 26, 2017, investigators with the Rowan County Sheriff’s Department utilized a confidential informant to purchase heroin from PARSON. Both transactions took place in the parking lot of a Salisbury grocery store.
“Today’s sentencing reflects our continued commitment to work with state and local law enforcement agencies to address violent crime and drug activity that plagues our communities,” said U.S. Attorney Martin. “It also highlights our strong working relationship with the Rowan County Sheriff’s Office, the Salisbury Police Department, the Rowan County District Attorney, and other local law enforcement agencies through Project Safe Neighborhoods to ensure all the people of Rowan County live in safe, drug free neighborhoods. I commend the excellent work done in this case by the Department of Homeland Security and the Rowan County Sheriff’s Office.”
The case was investigated by the Department of Homeland Security Investigations and the Rowan County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Terry M. Meinecke.
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U.S. Attorney Matt Martin Announces Nearly $60 Million in Grants Available to Support Prisoners’ Successful Reentry into Their CommunitiesRead the Press Release
GREENSBORO, NC – U.S. Attorney Matt Martin of the Middle District of North Carolina announced today that nearly $60 million in Department of Justice grants is available to help communities address public safety by supporting successful reentry of adult and juvenile offenders into their communities.
“Our nation is facing difficult public safety challenges that demand strong and immediate action. The high rate of recidivism poses a dire threat to community safety and is being met with a robust response by this Administration,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this persistent challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
“Focusing re-entry efforts on the most violent offenders is an important component of our office’s Project Safe Neighborhoods strategy to reduce violent crime. We work with our federal and local law enforcement partners to aggressively prosecute our most violent offenders. We also realize that assisting probation, service agencies, clergy, and community partners to direct resources towards returning impact players will improve public safety outcomes. These grants will help in the comprehensive fight against violent crime,” said U.S. Attorney Matt Martin.
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including adult and juvenile reentry initiatives and research projects designed to improve our knowledge of what works in reentry programming.
A number of funding opportunities are currently open, with several more opening in the near future.
- Correctional Adult Reentry Education, Employment, and Recidivism Reduction Strategies Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17104
Total Available $7.2 million. Deadline 4/27/2020
- Improving Community Supervision Outcomes Through Swift, Certain, and Fair Responses
https://bja.ojp.gov/funding/opportunities/bja-2020-17096
Total Available $3 million. Deadline 4/28/2020
- Improving Reentry for People with Substance Use Disorders Program
https://bja.ojp.gov/SCASUD20
Total Available $13.2 million. Deadline 4/27/2020
- Innovations in Reentry Initiative: Building System Capacity & Testing Strategies to Reduce Recidivism
https://bja.ojp.gov/funding/opportunities/bja-2020-17281
Total Available $4 million. Deadline 5/4/2020
- Research and Evaluation on Promising Reentry Initiatives
https://nij.ojp.gov/funding/opportunities/nij-2020-17295
Total Available $6 million. Deadline 5/5/2020
- Review and Validation of the First Step Act Risk Assessment Tool
https://nij.ojp.gov/funding/opportunities/nij-2020-fsa
Total Available: Determined after selection. Deadline 4/10/2020
- Second Chance Act Community-Based Reentry Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17110
Total Available $13.5 million. Deadline 5/4/2020
- Second Chance Act Evaluation Participation Support
https://bja.ojp.gov/funding/opportunities/bja-2020-17680
Total Available $4 million. Deadline 4/28/2020
- Second Chance Act Youth Offender Reentry Program
https://ojjdp.ojp.gov/sites/g/files/xyckuh176/files/media/document/ojjdp-2020-17350.pdf
Total Available $7 million. Deadline 4/28/2020
For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities.
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- Correctional Adult Reentry Education, Employment, and Recidivism Reduction Strategies Program
U.S. Attorney Matt Martin Announces More Than $163 Million Available to Fight Addiction CrisisRead the Press Release
GREENSBORO, NC – U.S. Attorney Matt Martin of the Middle District of North Carolina announced today that more than $163 million in Department of Justice grants is available to help communities address America’s addiction crisis.
“Our nation is facing the difficult challenge of curbing substance addiction, which threatens public safety and is among the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
“Drug overdose has taken too many lives; drug addiction has ruined too many futures. North Carolinians can and will overcome. I hope these grants will expand tested and tried programs that break addiction. The U.S. Attorney’s Office has prioritized drug trafficking prosecution and these grants show the U.S. Department of Justice is helping reduce demand for drugs,” said U.S. Attorney Matt Martin.
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs designed to prevent overdose deaths and break the cycle of addiction and crime.
A number of funding opportunities that address the addiction crisis are currently open:
- Adult Drug Court and Veterans Treatment Court Discretionary Grant Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17098
Total Available $1.75 million. Deadline 5/14/2020.
- Comprehensive Opioid, Stimulant, and Substance Abuse Site-based Program
https://bja.ojp.gov/COSSAP20
Total Available $27 million. Deadline 5/21/2020.
- Enhancing Community Responses to America's Addiction Crisis: Serving Our Youngest Crime Victims
https://www.ovc.gov/grants/pdftxt/fy-2020-enhancing-community-responses-to-drug-crisis.pdf
Total Available: $19 million. Deadline: 5/4/2020.
- Family Drug Court Program
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17090
Total Available $18.2 million. Deadline 4/8/2020 (Extended).
- Harold Rogers Prescription Drug Monitoring Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17754
Total Available $28.1. Deadline 5/5/2020.
- Juvenile Drug Treatment Court Program
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17051
Total Available $7.2 million. Deadline 4/13/2020 (Extended).
- Mentoring Opportunities for Youth Initiative
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-16930
Total Available $48 million. Deadline 4/13/2020.
- Opioid Affected Youth Initiative
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17352
Total Available $9 million. Deadline 4/20/2020.
- Research and Evaluation on Drugs and Crime
https://nij.ojp.gov/funding/opportunities/nij-2020-17275
Total Available $1 million. Deadline 4/20/2020.
- Residential Substance Abuse Treatment for State Prisoners
https://bja.ojp.gov/RSAT20
Total Available $4.5 million. Deadline 4/6/2020.
For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities
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U.S. Attorney Matt Martin Announces More Than $65 Million Available to Fight Human Trafficking and Help Trafficking VictimsRead the Press Release
Greensboro, N.C. – U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina today announced that more than $65 million in Department of Justice grants is available to help communities combat human trafficking and serve adults and children who are victimized in trafficking operations. “We are pleased to be able to have this channel of funding for our local partners to help us attack the evil of human trafficking,” said U.S. Attorney Martin.
“Our nation is facing difficult challenges, none more pressing than the scourge of human trafficking. Human traffickers pose a dire threat to public safety and countering this threat remains one of the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight against this insidious crime. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs that support human trafficking task forces and services for human trafficking survivors.
A number of funding opportunities are currently open, with several more opening in the near future.
- Missing and Exploited Children Training and Technical Assistance Program
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17351
Total Available $1.8 million. Deadline 4/6/2020 (Extended)
- Multidisciplinary Task Force Program to Combat Human Trafficking
Total Available $22 million. Opens week of 3/16/2020
- Preventing Trafficking of Girls
Total Available $1.7 million. Opens week of 3/16/2020
- Research and Evaluation on Trafficking in Persons
https://nij.ojp.gov/funding/opportunities/nij-2020-17324
Total Available $2.5 million. Deadline 4/20/2020
- Services for Victims of Human Trafficking
Total Available $16.5 million. Opens week of 3/16/2020
- Specialized Training and Technical Assistance on Housing for Victims of Human Trafficking
Total Available $2 million. Opens week of 3/16/2020
- Human Trafficking Training and Technical Assistance Program
Total Available $5 million. Opens week of 3/16/2020
- Improving Outcomes for Child and Youth Victims of Human Trafficking
Total Available $6 million. Opens week of 3/16/2020
- Integrated Services for Minor Victims of Labor Trafficking
Total Available $8 million. Opens week of 3/16/2020
For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities
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U.S. Attorney Matt Martin Urges the Public to Report Suspected COVID-19 FraudRead the Press Release
GREENSBORO, N.C. – U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina today urged the public to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected].
In coordination with the Department of Justice, Attorney General William Barr has directed U.S. Attorneys to prioritize the investigation and prosecution of Coronavirus fraud schemes.
“Exploiting the difficult circumstances the global pandemic has created is despicable, but some people are so callous and greedy that they will defraud their fellow citizens when at their most vulnerable. We are determined to identify and prosecute these criminals to the fullest extent of the law,” said U.S. Attorney Martin. “You can help by contacting the National Center for Disaster Fraud with information about any schemes you see that aim to take advantage of people.”
Some examples of these schemes include:
• Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
• Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
• Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to your devices until payment is received.
• Seeking donations fraudulently for illegitimate or non-existent charitable organizations.
• Medical providers obtaining patient information for COVID-19 testing and then using that information to fraudulently bill for other tests and procedures.
In a memorandum to U.S. Attorneys issued March 19, Deputy Attorney General Jeffrey Rosen also directed each U.S. Attorney to appoint a Coronavirus Fraud Coordinator to serve as the legal counsel for the federal judicial district on matters relating to the Coronavirus, direct the prosecution of Coronavirus-related crimes, and to conduct outreach and awareness activities. The Middle District of North Carolina Coronavirus Fraud Coordinator is AUSA Frank Chut, a seasoned fraud prosecutor with substantial experience investigating predatory schemes.
The NCDF can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components, to identify, investigate, and prosecute fraud schemes. The NCDF coordinates complaints with 16 additional federal law enforcement agencies, as well as state Attorneys General and local authorities.
To find more about Department of Justice resources and information, please visit www.justice.gov/coronavirus.
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Durham Tax Preparer Pleads Guilty to Tax FraudRead the Press Release
WINSTON-SALEM, N.C. - Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that SASHA SHABLEY JACKSON pleaded guilty to a felony charge of aiding and abetting the preparation of false tax returns.
JACKSON, age 32, of Durham, N.C., pleaded guilty before Chief United States District Judge Thomas D. Schroeder in federal court in Winston-Salem, to one count of tax fraud, in violation of 26 U.S.C. § 7206(2).
According to documents filed with the court, JACKSON owned and operated Top Notch Professional Tax Services, in Durham, North Carolina, preparing tax returns for clients from 2015 to 2019. During that time, she knowingly and willfully prepared and caused to be filed with the IRS income tax returns that were materially false. The false items including false dependents, false income, false education credits, and false fuel tax credits, all of which produced fraudulently inflated refunds. The IRS determined that the tax loss attributable to JACKSON’s misconduct is $1,196,263.
The defendant faces a maximum penalty of three years imprisonment, a fine of up to $250,000, or both, and a term of supervised release of not more than one year. She also agreed to pay restitution in the amount of $1,196,263. Sentencing will occur in Winston-Salem on June 9, 2020 at 2:00 p.m.
The case was investigated by Internal Revenue Service – Criminal Investigations. The case was prosecuted by Assistant United States Attorney Tanner Kroeger.
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Former Forsyth County Commissioner Pleads Guilty to Tax FraudRead the Press Release
WASHINGTON – A former Forsyth County Commissioner pleaded guilty today to filing false tax returns and failing to file a tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court documents and statements made in court, Everette Witherspoon Jr., was a managing member of “Chris’s Rehablative [sic] Services” (CRS), a mental health services provider, in Greensboro, North Carolina. Witherspoon also co-owned and operated Quick Taxes LLC, and Fast Tax Inc., tax return preparation businesses in Greensboro and Winston-Salem, respectively. For 2013 through 2015, Witherspoon filed false tax returns with the Internal Revenue Service (IRS) that failed to report his county commissioner wages and underreported income he received from CRS. Witherspoon also failed to file a tax return for 2012.
U.S. District Judge Thomas D. Schroeder scheduled sentencing for May 26, 2020. At sentencing, Witherspoon faces a statutory maximum sentence of three years in prison for filing a false tax return and one year in prison for failing to file a tax return. He also faces a period of supervised release, restitution, and monetary penalties.
Witherspoon’s partner at CRS and Quick Taxes, Willie Lee Cole Jr., was sentenced in January 2020 to six months’ imprisonment for failing to file his tax returns.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Lauren Castaldi of the Tax Division and Criminal Division Chief Clifton T. Barrett of the Middle District of North Carolina, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Former Forsyth County Commissioner Pleads Guilty to Tax FraudRead the Press Release
A former Forsyth County Commissioner pleaded guilty today to filing false tax returns and failing to file a tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court documents and statements made in court, Everette Witherspoon Jr., was a managing member of “Chris’s Rehablative [sic] Services” (CRS), a mental health services provider, in Greensboro, North Carolina. Witherspoon also co-owned and operated Quick Taxes LLC, and Fast Tax Inc., tax return preparation businesses in Greensboro and Winston-Salem, respectively. For 2013 through 2015, Witherspoon filed false tax returns with the Internal Revenue Service (IRS) that failed to report his county commissioner wages and underreported income he received from CRS. Witherspoon also failed to file a tax return for 2012.
U.S. District Judge Thomas D. Schroeder scheduled sentencing for May 26, 2020. At sentencing, Witherspoon faces a statutory maximum sentence of three years in prison for filing a false tax return and one year in prison for failing to file a tax return. He also faces a period of supervised release, restitution, and monetary penalties.
Witherspoon’s partner at CRS and Quick Taxes, Willie Lee Cole Jr., was sentenced in January 2020 to six months’ imprisonment for failing to file his tax returns.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Lauren Castaldi of the Tax Division and Criminal Division Chief Clifton T. Barrett of the Middle District of North Carolina, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Department of Justice Launches a National Nursing Home InitiativeRead the Press Release
WASHINGTON – U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina joined Attorney General William P. Barr in announcing today the Department of Justice’s National Nursing Home Initiative, which will coordinate and enhance civil and criminal efforts to pursue nursing homes that provide grossly substandard care to their residents.
This initiative is focusing on some of the worst nursing homes around the country and the Department has already initiated investigations into approximately thirty individual nursing facilities in nine states as part of this effort.
“Millions of seniors count on nursing homes to provide them with quality care, and to treat them with dignity and respect when they are most vulnerable,” said Attorney General William P. Barr. “Yet, all too often, we have found nursing home owners or operators who put profits over patients, leading to instances of gross abuse and neglect. This national initiative will bring to justice those owners and operators who have profited at the expense of their residents, and help to ensure residents receive the care to which they are entitled.”
“When those charged with the care of our valued seniors instead care more about profiteering from shoddy practices, we have a duty and obligation to seek justice,” said United States Attorney Martin. “When we find that neglect and abuse are marring what should be our seniors’ golden years, this Office will swiftly seek appropriate action against the offenders.”
The department considers a number of factors in identifying the most problematic nursing homes. For example, the department looks for nursing homes that consistently fail to provide adequate nursing staff to care for their residents, fail to adhere to basic protocols of hygiene and infection control, fail to provide their residents with enough food to eat so that they become emaciated and weak, withhold pain medication, or use physical or chemical restraints to restrain or otherwise sedate their residents. These care failures cause residents to suffer in pain and to be exposed to the great indignities. Care failures cause residents to develop pressure sores down to the bone, to lie in their own waste for hours, to starve because they cannot reach the food on their trays and to remain unwashed for weeks at a time. Nursing homes that provide grossly substandard care also force vulnerable elderly residents who cannot leave the facilities to live in filthy and dangerous conditions where there are leaks in the roofs, mold is found growing and rodents found living in residents’ rooms. These are some of the actions and the inactions that the department intends to pursue.
The National Nursing Home Initiative reflects the department’s larger strategy and commitment to protecting our nation’s seniors, coordinated by the department’s Elder Justice Initiative in conjunction with the U.S. Attorneys’ Offices. The Elder Justice Initiative and the U.S. Attorneys’ Offices are essential to the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The Initiative and the U.S. Attorneys’ Offices also support the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect and financial exploitation, with the development of training, resources, and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.
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Department of Justice Charges Unprecedented Number of Elder Fraud Defendants Nationwide and Launches HotlineRead the Press Release
Greensboro, N.C. – U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina joined Attorney General William P. Barr, FBI Director Christopher A. Wray, and Chief Postal Inspector Gary R. Barksdale today in announcing the largest coordinated sweep of elder fraud cases in history. This year, prosecutors charged more than 400 defendants, far surpassing the 260 defendants charged in cases as part of last year’s sweep. In each case, offenders allegedly engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused alleged losses of over a billion dollars.
“Americans are fed up with the constant barrage of scams that maliciously target the elderly and other vulnerable citizens,” said Attorney General William P. Barr. “This year, the Department of Justice prosecuted more than 400 defendants, whose schemes totaled more than a billion dollars. I want to thank the men and women of the Department’s Consumer Protection Branch, which coordinated this effort, and all those in the U.S. Attorneys’ Offices and Criminal Division who worked tirelessly to bring these cases. The Department is committed to stopping the full range of criminal activities that exploit America’s seniors.”
“Prosecuting elder fraud is one of our top priorities,” said U.S. Attorney Martin. “Defrauding older people is reprehensible conduct and we will use all the federal resources available to us to make sure defendants who commit these vile crimes are held accountable.”
This interactive map provides information on the elder fraud cases highlighted by today’s sweep announcement.
United States v. Kramer
U.S. Attorney Martin also announced that a woman whose case was included in the sweep totals was sentenced February 26, 2020, in federal court in Winston-Salem for wire fraud and money laundering.
ROZALIA ANN KRAMER, age 51, was sentenced to a total term of imprisonment of 24 months by United States District Judge Loretta C. Biggs. In addition to prison time, KRAMER was ordered to serve three years of supervised release and to pay restitution in the amount of $90,000 and a special assessment of $100.00. A forfeiture money judgment in the amount of $102,000 was also imposed. KRAMER pleaded guilty on October 8, 2019.
According to documents filed with the Court, KRAMER met elderly World War II veteran J.V.M. while in line at the K&W Cafeteria at Friendly Center shopping center in Greensboro. After speaking in line with J.V.M., KRAMER dined with him. She then began to socialize with the elderly widower regularly eating with him and meeting him on social occasions, J.V.M. owned a residence on Forest Hill Drive in Greensboro, free of any liens or mortgages. He had lived in the house since the 1950s and raised his family there. However, in 2015 J.V.M. began to reach the bottom of his retirement savings. He approached at least one bank and attempted to arrange a reverse mortgage. He then approached his friend KRAMER who had told him that she was a wealthy real estate investor. KRAMER represented that she could provide J.V.M. with a reverse mortgage and would provide him a life estate that would allow him to live in the Forest Hill Drive property for the rest of his life. J.V.M. agreed and gave KRAMER a deed to the property. However, KRAMER included the Forest Hill Drive property as part of a group of properties used to induce a loan from B2R Finance. J.V.M. was unaware that B2R Finance gained a first security interest in the Forest Hill Drive property. At the closing of the loan from B2R Finance, KRAMER directed that $146,000 of the proceeds be wired to J.V.M.’s bank account representing the money to be from the purported reverse mortgage. KRAMER provided J.V.M. with a life estate in the Forest Hill Drive property, but the life estate was subordinate to the first deed of trust. KRAMER then induced J.V.M. to part with half of the proceeds of the purported “reverse mortgage.” She induced him to loan $75,000.00 to a corporation she controlled and gave J.V.M. a promissory note due in one year. These funds were converted to KRAMER’s use and never repaid to the victim. Instead, KRAMER moved to Colorado and broke off all contact with J.V.M. She made no payments to B2R Finance on the loan, and B2R foreclosed. J.V.M. continued to live in the Forest Hill Drive property secure in his belief that he had a life estate in the property. However, the life estate was extinguished when B2R Finance foreclosed, and J.V.M. was evicted.
From Colorado, KRAMER moved to Wyoming in an attempt to avoid victims of her frauds who were seeking repayment. She ultimately took a job working on an isolated hunting ranch 15 miles outside Wheatland, Wyoming. She lived in housing owned by the ranch and drove a vehicle registered under a corporate name. Despite these attempts to avoid justice, Postal Inspectors from Greensboro, North Carolina, and Laramie, Wyoming, located KRAMER, and arrested her at the ranch.
The victim died in 2019. At sentencing, his daughter testified that the eviction had a devastating impact on her father. KRAMER was taken into custody at the conclusion of the sentencing hearing.
The case was investigated by the United States Postal Inspection Service in North Carolina, Colorado, and Wyoming. The case was prosecuted by Assistant United States Attorney Frank J. Chut, Jr.
Elder Fraud Hotline
Attorney General Barr also announced the launch of a National Elder Fraud Hotline, which will provide services to seniors who may be victims of financial fraud. The Hotline will be staffed by experienced case managers who can provide personalized support to callers. Case managers will assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).
For the second year, the Department of Justice and its law enforcement partners also took comprehensive action against the money mule network that facilitates foreign-based elder fraud. Generally, perpetrators use a “money mule” to transfer fraud proceeds from a victim to ringleaders of fraud schemes who often reside in other countries. Some of these money mules act unwittingly, and intervention can effectively end their involvement in the fraud. The FBI and the Postal Inspection Service took action against over 600 alleged money mules nationwide by conducting interviews, issuing warning letters, and bringing civil and criminal cases. Agents and prosecutors in more than 85 federal district participated in this effort to halt the money flow from victim to fraudster. These actions against money mules were in addition to the criminal and civil cases announced as part of this year’s elder fraud sweep.
These outreach efforts have helped to prevent seniors from falling prey to scams and have frustrated offenders’ efforts to obtain even more money from vulnerable elders.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Kernersville Man Sentenced to Prison for Impersonating a Federal Law Enforcement OfficerRead the Press Release
GREENSBORO, N.C. - A Kernersville man was sentenced today in federal court in Greensboro for impersonating a Deputy United States Marshal, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
MICHAEL ROBERT KWASNIEWSKI, age 38, was sentenced to a total term of imprisonment of 16 months by Senior United States District Judge N. Carlton Tilley, Jr. In addition to prison time, KWASNIEWSKI was ordered to serve three years of supervised release and to pay a fine of $2,000 and a special assessment of $100.00. KWASNIEWSKI pleaded guilty on March 6, 2019.
On October 30, 2018, KWASNIEWSKI was indicted for impersonating a United States Marshal. He was released on November 8, 2018, pending trial and advised that the commission of a federal felony while on release could result in enhanced penalties. On December 10, 2018, KWASNIEWSKI entered a Kohl’s department store in Kernersville wearing a grey t-shirt with a United States Marshals Service (“USMS”) emblem on the front and had a USMS badge draped around his neck. He was also armed with a handgun on his right side. Over the course of several hours in the store that night, KWASNIEWSKI displayed the badge and repeatedly identified himself to store employees as a “U.S. Marshal.”
The case was investigated by the United States Marshals Service, the Kernersville Police Department, and the Winston-Salem Police Department. The case was prosecuted by Assistant United States Attorney Meredith C. Ruggles.
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Stanly County Man Sentenced to 75 Months in Prison for Firearm and Drug ChargesRead the Press Release
WINSTON-SALEM, N.C. – A Stanly County man was sentenced to federal prison Tuesday, for firearm and drug offenses, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
EARL CHRISTOPHER TERRY, JR., 34,also known as “E” and “E-Magic,” pleaded guilty on October 15, 2019, to one count of possession of ammunition by a previously convicted felon, one count of possession with intent to distribute heroin, and one count of possession with intent to distribute fentanyl. On February 26, 2020, TERRY was sentenced by United States District Judge Loretta C. Biggs to 75 months of imprisonment, followed by three years of supervised release.
On April 18, 2019, the Stanly County Sherriff’s Office executed a search warrant at TERRY’s Badin, N.C., residence, finding $9,212 in cash and several dozen rounds of ammunition. In the woods across from the residence, deputies found a Smith & Wesson model M&P 40, .40-caliber handgun, next to bag containing heroin and fentanyl. Analysis later showed that TERRY’s DNA was on the handgun. Because TERRY had a prior felony conviction in Stanly County for three counts of the felonious Indecent Liberties with a Child, he could not possess a firearm or ammunition under federal law. TERRY was arrested on state charges but released on bond. On May 7, 2019, the Stanly County Sheriff’s Office received additional information about TERRY and narcotics, and again executed a search warrant on his residence, finding additional heroin and fentanyl.
Judge Biggs also ordered forfeiture of the handgun and ammunition found in the woods across from TERRY’s residence.
This case was investigated by the Drug Enforcement Administration, Stanly County Sheriff's Office, Richland County (South Carolina) Sheriff's Office, and the Bureau of Alcohol, Tobacco, Firearms, & Explosives, with the assistance of the District Attorney's Office for Stanly and Montgomery Counties. The case was prosecuted by Assistant United States Attorneys Eleanor T. Morales and Craig M. Principe for the Middle District of North Carolina.
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Kernersville Man Who Shot at A North Carolina State Highway Patrol Officer Convicted of Firearms and Drug OffensesRead the Press Release
GREENSBORO, N.C. - On Wednesday, February 12, 2020, a jury in federal court convicted a Kernersville man of four felony charges related to shooting at a state trooper, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
Following a three day trial in Greensboro, the jury found TYLER LLOYD GRANTZ, age 20, guilty of knowing possession of a stolen firearm, possession with intent to distribute a mixture containing cocaine hydrochloride, possession with intent to distribute a mixture containing oxycodone, and carry and use of firearms, through discharge, during and in relation to a drug trafficking crime.
Evidence presented at trial showed that on March 5, 2019, a North Carolina State Highway Patrol trooper tried to stop of GRANTZ for driving in excess of 100 mph on I-40 in Orange County. As he fled, GRANTZ, fired multiple rounds from a Glock .40 caliber handgun at the trooper, striking the patrol vehicle’s radiator. GRANTZ then pulled over and fired multiple rounds at the trooper with a Draco 7.62x39 mm rifle before fleeing on foot. The Orange County Sheriff’s Office began a manhunt for GRANTZ, ultimately arresting him later that morning. During the investigation, officers recovered the handgun from the GRANTZ’S vehicle and the rifle from his person. At the time of his arrest, GRANTZ possessed distribution amounts of cocaine hydrochloride and oxycodone, drug packaging paraphernalia, and additional ammunition. Deputies discovered that the car GRANTZ was driving was stolen, and that the Glock .40 caliber handgun he had fired was also stolen.
In reviewing GRANTZ’S social media accounts, officers saw an image of a person who appears to be GRANTZ holding a Glock handgun similar in appearance to the stolen Glock handgun recovered from the car, posted shortly after it was reported as stolen. A search of GRANTZ’S cell phone, left in his vehicle, revealed multiple text messages related to the sale of controlled substances and the possession of firearms.
Sentencing is scheduled for May 11, 2020, at 2:00 p.m., in Greensboro, before United States District Judge William L. Osteen, Jr. GRANTZ faces a maximum sentence of 10 years in prison for possession of the stolen firearm, a maximum sentence of 20 years in prison for the narcotics offenses, and a consecutive sentence of ten years to life for discharging a firearm during and in relation to a drug crime.
The case was investigated by the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force and the Orange County Sheriff’s Office with assistance from the North Carolina State Highway Patrol and the Chapel Hill Police Department. The case was prosecuted by Assistant United States Attorney JoAnna G. McFadden.
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Lexington Felon with Handgun Sentenced to Total of 139 Months ImprisonmentRead the Press Release
GREENSBORO, N.C. - A Lexington resident was sentenced on February 6, 2020, in federal court in Greensboro for knowingly possessing a firearm after previously being convicted of a felony, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
FRANKLIN ALEXANDER MILLS, age 39, was convicted by a jury in September 2019 of knowingly possessing a .45 caliber handgun after previously being convicted of a felony offense punishable by imprisonment for more than one year. Trial evidence showed that on December 27, 2018, a Salisbury Police officer initiated a traffic stop on MILLS’ vehicle. As the officer made it to the driver’s side door of the vehicle, MILLS accelerated and fled. Multiple police units joined the pursuit, during which time MILLS committed numerous traffic violations. Officers briefly lost sight of the vehicle, but were alerted less than a minute later to a vehicle crash on Bringle Ferry Road. When officers arrived at the scene of the crash they observed MILLS’ vehicle, but MILLS had fled on foot. A search of the vehicle led to the discovery of a Hi-Point .45 pistol on the driver’s side floorboard. Investigators also located a driver’s license and registration with MILLS’ name. At approximately 3:00 a.m. on December 28, 2018, law enforcement officers arrested MILLS at Lexington Hospital after being notified that he was there seeking treatment. MILLS has multiple prior felony convictions, including a 2010 federal conviction in the Middle District of North Carolina for firearm and controlled substance violations. MILLS was on supervised release from that conviction at the time of his arrest in 2018.
United States District Judge William L. Osteen, Jr. sentenced MILLS to a 24 month term of imprisonment for violating the terms of his supervised release, and to a 115 month term of imprisonment for the felon in possession of a firearm charge, and ordered that the sentences run consecutively. In addition to prison time, MILLS was ordered to serve three years of supervised release and to pay a special assessment of $100.00.
The case was investigated by the Salisbury Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorney Terry M. Meinecke.
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Owners of Greensboro Temporary Staffing Firms Plead Guilty to Employment Tax FraudRead the Press Release
WASHINGTON – Two Greensboro, North Carolina, business owners pleaded guilty today to failing to pay over employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to documents and information provided to the court, Rebecca Adams, 57, and her daughter Elizabeth Wood, 40, operated a temporary staffing business in Greensboro that changed names twice, even though it did not otherwise change its actual business operations. Adams and Wood withheld taxes from employees’ paychecks but did not pay those taxes over to the IRS.
In 2015, Wood began serving a criminal sentence in North Carolina after pleading guilty to embezzling employee state tax withholdings that were due to the State. During Wood’s period of incarceration, her mother, Adams, withheld taxes from employees’ paychecks, but did not pay those taxes over to the IRS. Adams also did not file the required quarterly payroll tax return. Upon being released from prison in 2015, Wood resumed her role at the staffing business and continued to withhold taxes from employees’ paychecks, but again did not pay the taxes over to the IRS.
U.S. Senior District Judge N. Carlton Tilley Jr., scheduled Adams’s sentencing for May 22, 2020, and Wood’s sentencing for May 29, 2020. They each face a statutory maximum sentence of five years in prison, as well as a period of supervised release and monetary penalties. As part of their plea agreements, the defendants have agreed to pay restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin thanked agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Frank Chut and Trial Attorney Kevin Schneider of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Owners of Greensboro Temporary Staffing Firms Plead Guilty to Employment Tax FraudRead the Press Release
Two Greensboro, North Carolina, business owners pleaded guilty today to failing to pay over employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to documents and information provided to the court, Rebecca Adams, 57, and her daughter Elizabeth Wood, 40, operated a temporary staffing business in Greensboro that changed names twice, even though it did not otherwise change its actual business operations. Adams and Wood withheld taxes from employees’ paychecks but did not pay those taxes over to the IRS.
In 2015, Wood began serving a criminal sentence in North Carolina after pleading guilty to embezzling employee state tax withholdings that were due to the State. During Wood’s period of incarceration, her mother, Adams, withheld taxes from employees’ paychecks, but did not pay those taxes over to the IRS. Adams also did not file the required quarterly payroll tax return. Upon being released from prison in 2015, Wood resumed her role at the staffing business and continued to withhold taxes from employees’ paychecks, but again did not pay the taxes over to the IRS.
U.S. Senior District Judge N. Carlton Tilley Jr., scheduled Adams’s sentencing for May 22, 2020, and Wood’s sentencing for May 29, 2020. They each face a statutory maximum sentence of five years in prison, as well as a period of supervised release and monetary penalties. As part of their plea agreements, the defendants have agreed to pay restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin thanked agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Frank Chut and Trial Attorney Kevin Schneider of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.
Owner of Greensboro Mental Health Services Provider Sentenced to Prison, Ordered to Pay $179,547 for Not Filing Tax Returns for Three YearsRead the Press Release
GREENSBORO, N.C. - A Guilford County businessman was sentenced to six months in federal prison on January 28, 2020, for failing to file a federal tax return, announced United States Attorney Matthew G.T. Martin for the Middle District of North Carolina.
According to court documents and statements made in court, Willie Lee Cole, Jr., owned and operated “Chris’s Rehablative [sic] Services,” a mental health services provider in Greensboro, North Carolina. From 2013 through 2015, Cole did not file personal tax returns even though he earned hundreds of thousands of dollars in income during that time.
In addition to the term of imprisonment, U.S. Magistrate Judge L. Patrick Auld ordered Cole to serve a one-year term of supervised release and pay $179,547 in restitution to the United States.
U.S. Attorney Martin commended special agents of IRS - Criminal Investigation, who conducted the investigation, and Trial Attorney Lauren Castaldi of the Tax Division and Criminal Division Chief Clifton T. Barrett of the Middle District of North Carolina, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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U.S. Attorney’s Office Collects More Than $3.5 Million in Civil and Criminal Actions in Fiscal Year 2019Read the Press Release
GREENSBORO, N.C. - United States Attorney Matthew G.T. Martin announced today that the Middle District of North Carolina collected $3,516,486 in criminal and civil actions in Fiscal Year 2019. Of this amount, $2,721,999 was collected in criminal actions and $794,487 was collected in civil actions.
“The federal prosecutors and support staff in our office work hard to protect our citizens, to safeguard precious taxpayer resources, and to collect money owed to crime victims and to the government,” said U.S. Attorney Martin. “Their diligent efforts enable us to seek justice for crime victims every day and hold accountable those who seek to profit from illegal activity.”
In 2019, the Middle District of North Carolina recovered $624,731 from a single defendant in the case of USA v. Douglas Alan Corriher; 1:16CR205-1. Corriher was prosecuted for Conspiracy to Impede the Internal Revenue Service and was ordered to pay restitution in the amount of $7,556,882.38. The IRS will receive the funds collected.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the District working with partner agencies and divisions, collected $2,386,587 in asset forfeiture actions in FY 2019. Forfeited assets deposited into the Department of Justice and Department of Treasury Assets Forfeiture Funds are used to restore funds to crime victims and for a variety of law enforcement purposes.
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High Point Man Convicted of Drug and Firearm OffensesRead the Press Release
GREENSBORO, N.C. - On Thursday, January 16, 2020, following a three-day trial in Greensboro, a jury in federal court found a High Point resident guilty on four felony charges, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
The jury found JABRELL CRAIG SMITH, age 27, guilty of possession with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, knowingly possessing a firearm after previously being convicted of a felony offense, and knowingly possessing an unregistered firearm.
Evidence presented at trial showed that on May 29, 2017, at approximately 2:00 a.m., officers from the Greensboro Police Department’s Street Crimes Unit followed and approached a black Chevrolet Malibu in the parking lot of a gas station located at 3302 South Holden Road in Greensboro. Police found an Intratec, Tec-9, 9mm Luger firearm sticking out from under the front passenger seat where SMITH had been seated. When officers recovered the weapon, they noticed that a red dot sighting system situated on top of the weapon was turned on and that a round of live ammunition had been chambered, making the Tec-9 ready to fire. The magazine contained twenty-six additional rounds of live ammunition. In the door pocket of the front passenger seat, officers recovered a plastic baggie containing 3.32 grams of heroin. At trial, the government presented text messages, videos, and photographs that established that SMITH possessed the heroin for the purpose of distribution and that he was previously familiar with, and had access to, the Tec-9. The Tec-9 had a modification, a forward grip attached to the frame of the weapon, which made it subject to additional regulation and registration in the National Firearms Registration and Transfer Record.
Sentencing is scheduled for May 11, 2020, at 9:30 a.m., in Greensboro, before United States District Judge William L. Osteen, Jr. With regard to the drug offense, SMITH faces a maximum sentence of 20 years in prison, a fine of up to $250,000, or both, and a term of not less than three years of supervised release. For possessing a firearm in furtherance of a drug crime, SMITH faces a mandatory minimum sentence of five years, and up to life, consecutive to any other sentence, a fine of up to $250,000, or both, and not more than five years of supervised release. For being a felon in knowing possession of a firearm, SMITH faces a maximum sentence of ten years in prison, a fine of up to $250,000, or both, and not more than three years of supervised release. For possessing the weapon subject to regulation under the National Firearms Act, SMITH faces a maximum sentence of ten years in prison, a fine of up to $10,000, or both, and not more than three years of supervised release.
The case was investigated by the Greensboro Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorney John M. Alsup.
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Cabarrus County Man Sentenced to 138 Months in Federal Prison for Drug OffenseRead the Press Release
GREENSBORO, N.C. - A resident of Kannapolis, North Carolina, was sentenced today in federal court in Greensboro for possessing methamphetamine with the intent to distribute, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
JEREMY MICHAEL MCDANIEL, age 33, was sentenced to a 138 month term of imprisonment by United States District Judge William L. Osteen, Jr. In addition to prison time, MCDANIEL was ordered to serve five years of supervised release and pay a special assessment of $100.00. MCDANIEL pleaded guilty on September 5, 2019 to the single count indictment.
Court records show that on December 16, 2018, Cabarrus County probation officers with the North Carolina Department of Public Safety (NCDPS) conducted a warrantless probationary search of MCDANIEL’s home in Kannapolis after receiving information that he was selling methamphetamine to coworkers. During the search, probation officers located 3.76 grams of methamphetamine, marihuana, digital scales, and other drug-related paraphernalia. MCDANIEL was on supervised probation at the time as a result of multiple felony and misdemeanor convictions on July 25, 2018. As a condition of his probation, MCDANIEL was subject to warrantless searches at reasonable times.
The case was investigated by the Federal Bureau of Investigation, the Kannapolis Police Department, and the North Carolina Department of Public Safety--Community Corrections division. The case was prosecuted by Assistant United States Attorney Craig M. Principe.
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UNC Agrees to Pay More Than $4.5 Million to the United States Following Self-Disclosure of Errors in Grant Accounting ProceduresRead the Press Release
GREENSBORO, N.C. - The University of North Carolina at Chapel Hill (UNC) has agreed to pay the government $4,552,058.03 to resolve an overpayment resulting from errors in grant accounting procedures from January 1, 2007 through June 30, 2011, and from October 1, 2014 through March 31, 2017, U.S. Attorney Matthew G. T. Martin for the Middle District of North Carolina announced.
This settlement results from self-disclosures to the National Institutes of Health (NIH) of the U.S. Department of Health and Human Services (HHS) and later to the U.S. Attorney’s Office for the Middle District of North Carolina. UNC first discovered errors in 2011, and subsequently made written self-disclosures to the United States relating to grant closeout procedures. UNC later made an additional self-disclosure relating grant accounting issues, after it implemented new financial system software. Due to these errors, the University inadvertently retained excess funds, charged salary costs to awards after the award term had ended, and retained excess cash. UNC fully cooperated with the government’s investigation of the self-disclosures, and has implemented changes to its Office of Sponsored Research to ensure future compliance.
“Our office is committed to ensuring that federal grant dollars are properly applied and accounted for,” said Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina. “We appreciate UNC’s disclosure of these issues and hope this matter serves as a reminder to other institutions that receive tax dollars that they must have controls in place to ensure federal tax dollars are used as intended.”
The settlement in this matter was the result of a coordinated effort by the U.S. Attorney’s Office for the Middle District of North Carolina, the HHS Office of Inspector General (“HHS-OIG”), and the NIH Division of Program Integrity.
Recipients of federal awards who identify potential violations of law that may have resulted in the submission of improper claims relating to those awards should know that it is Department of Justice policy that entities or individuals that make proactive, timely, and voluntary self-disclosures will receive credit during the resolution of such matters.
In addition, recipients of HHS awards may self-disclose conduct to HHS-OIG. On July 11, 2019, HHS-OIG released new Grant Self-Disclosure Program Guidance, which is available on its website. The Program provides HHS award recipients and sub-recipients with a framework for disclosing, coordinating, evaluating, and resolving potential violations of law relating to their awards or sub-awards.
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Durham Man Sentenced on Robbery, Firearms ChargesRead the Press Release
GREENSBORO, N.C. B A resident of Durham, North Carolina, was sentenced in federal court in Greensboro on December 17, 2109, for robbery and firearm offenses, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
KEVIN JAMIE JENAVOUS MALONE, age 25, was sentenced to a 235 month term of imprisonment by United States District Judge William L. Osteen, Jr. In addition to prison time, MALONE was ordered to pay $33,200 in restitution and a $400 special assessment, and to serve five years of supervised release. MALONE pleaded guilty on September 3, 2019, to three counts of interfering with commerce by robbery (Hobbs robbery) and one count of brandishing a firearm during or in relation to a crime of violence.
Court records show that MALONE was a member of the Nine Trey Gangstas (NTG), a group whose members committed acts of violence throughout North Carolina and along the east coast of the United States. MALONE pleaded guilty to his involvement in three such robberies:
- On January 15, 2016, T.P. and his wife, H.P., closed their nail salon, Pink Nails, in Hillsborough, NC, and went home. On the way home they noticed that they were being followed. When they arrived home at their home in Hillsborough, they were assaulted by three black males wearing ski masks and carrying guns in the driveway of their home. They were forced inside of the residence and they and their children were held at gun-point. The men assaulted T.P. by hitting him over the head with a pistol. When they were leaving the residence one of the males discharged his firearm into the floor.
- On January 17, 2016, Chapel Hill Police responded to North Estes Drive in reference to a robbery. When the officers arrived, they found a female victim, identified as G.K., lying on the sidewalk bleeding from her head. G.K. told the officers that she had been assaulted by four men wearing ski masks. The males had at least two pistols, which they pointed at her during the robbery, and they fled on foot. The second victim, identified as A.L., was not injured in the assault. The victims explained that they were in their driveway unloading their car when four males ran up to them, pointed guns at them, and demanded that they open the door to their house. G.K. refused to open the door to her residence, and she was struck in the head multiple times by one of the assailants. The men were not able to gain entry into the house, and the items stolen from the victims were reported as food items of little to no value. The victims informed the police that they own a jewelry kiosk, Lakhani Jewelers, in the Northgate Mall in Durham.
- On January 21, 2016, four black males kicked in the front door of a residence on Rondelay Drive in Durham. All four males carried handguns. The males pointed weapons at family members and demanded money and jewelry. The residence belonged to, and was occupied by, the B. family. The B. family is of Middle Eastern descent and are the owners of Biswas Tobacco in Durham.
The case was investigated by the FBI, Durham Police Department, Durham County Sheriff’s Office, and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Terry M. Meinecke.
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Rowan County Doctor Sentenced for Unlawful Distribution of Prescription OpioidsRead the Press Release
GREENSBORO, N.C. – A Salisbury medical doctor who unlawfully prescribed oxycodone was sentenced to prison, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
DR. OKECHUKWU DIMKPA, age 50, of Salisbury, North Carolina, was sentenced to a total of 46 months’ imprisonment by United States District Judge Catherine C. Eagles on December 16, 2019. DIMKPA was also ordered to serve 3 years of supervised release following his imprisonment, and to pay a $50,000 fine. DR. DIMKPA pleaded guilty on September 11, 2019, to six counts of knowingly causing to be distributed oxycodone, a schedule II controlled substance, while acting outside the course of professional practice and without a legitimate medical purpose.
Court records show DR. DIMKPA, an Internist and former owner and operator of Care Plus Urgent Care in Kannapolis, was over-prescribing prescription pain medication, specifically, oxycodone. In 2016, investigators learned that DR. DIMKPA was prescribing opioids to known “drug seekers” with little or no physical examination and for cash. One person who was prescribed oxycodone by DR. DIMPKA died in 2016 from Acute Combined Drug Toxicity.
As part of the plea agreement, DR. DIMKPA was required to surrender his DEA Registration numbers, effectively barring him from prescribing controlled substances.
“Our office is focused on stemming the tide of opioid abuse by prosecuting opioid dealers, whether they are on the street corner or wearing a white coat in a medical office. This investigation demonstrates the exceptional coordination between federal, state, and local authorities to address the over-prescription of opioids,” stated United States Attorney Matthew G.T. Martin.
The case was investigated by the Drug Enforcement Agency, Federal Bureau of Investigation, Department of Health and Human Services, the North Carolina State Bureau of Investigation, and the Cabarrus County Sheriff's Office. The case was prosecuted by Assistant United States Attorney Michael A. DeFranco. This case was brought by the Opioid Fraud and Abuse Detection Unit of the Middle District of North Carolina, which is focused on identifying and prosecuting medical professionals who are contributing to the opioid epidemic.
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