Middle District of North Carolina
Press releases recorded for this federal judicial district.
Two Montgomery County, N.C., Residents Sentenced for Drug-Related ChargesRead the Press Release
GREENSBORO, N.C. – Two residents of Mount Gilead, N.C., were sentenced to federal prison today for activity involving distribution of cocaine base (“crack”), announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
JASPER LEE CUTHRELL, age 38, of Mount Gilead, North Carolina, was sentenced to a total of 136 months’ imprisonment by United States District Judge William L. Osteen, Jr. CUTHRELL was also ordered to serve 5 years of supervised release following his imprisonment, and to pay a special assessment of $300. CUTHRELL pleaded guilty on September 4, 2019, to conspiracy to distribute crack cocaine, distribution of crack cocaine, and possession of firearms in furtherance of drug trafficking crimes.
SHANI GWYNN LATHAM, age 31, of Mount Gilead, North Carolina, was sentenced to 21 months’ imprisonment by United States District Judge William L. Osteen, Jr. In addition to prison time, LATHAM was ordered to serve 4 years of supervised release and to pay a special assessment of $100. LATHAM pleaded guilty on September 4, 2019, to distribution of crack cocaine.
Court records show CUTHRELL engaged in a conspiracy to distribute crack cocaine with LATHAM and other persons in Montgomery County, North Carolina from April 25, 2019, through July 9, 2019. During that time, law enforcement used confidential informants to engage in a series of purchases from CUTHRELL of crack cocaine and firearms on several dates. This investigation resulted in the recovery of four firearms, one rifle, one shotgun, and two revolvers, one of which had been reported stolen from Salisbury, North Carolina. The narcotics and firearms sales took place at a residence in Montgomery County. LATHAM directly participated in one of the sales of crack cocaine to a confidential informant on April 25, 2019.
The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Montgomery County Sheriff’s Office and the Mount Gilead Police Department. The case was prosecuted by Assistant United States Attorney Craig M. Principe.
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Salisbury Man Sentenced to 28 Years in Prison for Production of Child PornographyRead the Press Release
GREENSBORO, N.C. – A man who pleaded guilty to production of child pornography was sentenced to 28 years in prison today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
JOSHUA DOUGLAS MARTORELLI, 36, of Salisbury, North Carolina, pleaded guilty on August 7, 2019, to one count of production of child pornography and one count of attempted production of child pornography. He was sentenced by Chief United States Chief District Judge Thomas D. Schroeder to 28 years of imprisonment followed by 25 years of supervised release.
MARTORELLI targeted children for sexual exploitation by forming romantic relationships with their mothers. He then cajoled the mothers to exploit their own children for his sexual gratification. In fall 2016, MARTORELLI directed the mother of a young boy to sexually assault the child and send him a picture of the abuse. The mother complied. Messages recovered by investigators revealed that MARTORELLI made many similar requests during the same time period.
This case was investigated by a team of agencies comprised of the Rowan County Sheriff’s Office, North Carolina State Bureau of Investigation, and Homeland Security Investigations (HSI). 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 Attorney Eric L. Iverson. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Southern Pines Man Sentenced to 44 Months ImprisonmentRead the Press Release
GREENSBORO, N.C. - A previously convicted felon from Southern Pines was sentenced on November 12, 2019, in federal court in Winston-Salem, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
CLARK DuVAUL FRYE WADDELL, II, aka “Woody” Waddell, age 26, was sentenced to a 44 month term of imprisonment by Chief United States District Judge Thomas D. Schroeder. In addition to prison time, WADDELL was ordered to serve three years of supervised release and to pay a special assessment of $100.00. WADDELL pleaded guilty on August 8, 2019, to possession with intent to distribute marijuana and knowingly possessing a firearm after previously being convicted of a felony offense punishable by imprisonment for more than one year.
“The United States Attorney’s Office is committed to forging partnerships between federal, state and local law enforcement agencies in order to reduce violent crime and protect the people of the Middle District by identifying and prosecuting offenders like this.” said United States Attorney Martin. “I commend the Southern Pines Police Department, ATF, and AUSA DuPré for their diligence in this case.”
“The Southern Pines Police Department prides itself on developing and maintaining a unified law enforcement/public safety approach to protect our community,” said Chief Bob Temme. “This ever improving shift in organizational culture not only involves the creation of external partnerships, but also citizen involvement, data analysis, intelligence gathering and problem solving. This arrest and conviction highlights many of these successful strategies.”
Court records show that on March 23, 2019, at approximately 2:20 am, officers from the Southern Pines Police Department attempted to stop a vehicle being operated by WADDELL in the area of East Indiana Avenue and Fort Bragg Road in Southern Pines. At this time, WADDELL drove though several residential streets stopping on East Hedgelawn Way, where he exited the vehicle without putting it in park, and fled from officers on foot. The vehicle came to rest after striking a utility box. While being pursued by officers, WADDELL was observed throwing a large bag of marijuana to the ground. As the foot chase continued, WADDELL was observed pulling a firearm from his person and attempted to discard it by throwing it. WADDELL was taken into custody by the pursuing officers. Recovered in this incident was over 57 grams of marijuana, $2,476.00 in U.S. currency, digital scales and a loaded Glock .40 caliber semi-automatic pistol.
WADDELL was previously convicted in Moore County for possession with intent to sell or deliver marijuana, and in Wake County, North Carolina, for possession of a firearm by a convicted felon and prohibited by state and federal law(s) from possessing a firearm. At the time of his arrest, he was out on a $100,000.00 bond following arrest by the Southern Pines Police Department on May 27, 2018, for various drug offenses and for resisting arrest.
The case was investigated by the Southern Pines Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorney Nicole R. DuPré.
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Greensboro Man Convicted of Firearm Offenses and Trafficking Controlled SubstancesRead the Press Release
GREENSBORO, N.C. - On Wednesday November 20, 2019, a jury in federal court found a Greensboro resident guilty on three felony charges, 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 CLYDE OTIS ALSTON, JR., age 25, guilty of possession with intent to distribute a mixture containing heroin, fentanyl, and 4-Anilino-N-phenethylpiperidine (4-ANPP), possession of a firearm in furtherance of a drug trafficking crime, and knowingly possessing a firearm after previously being convicted of a felony offense.
“The national epidemic of opioid abuse continues to take hundreds of lives each day. Fentanyl is especially deadly: as little as two milligrams of fentanyl, an amount equal to two grains of sand, can kill a person, yet drug trafficking organizations continue to mix fentanyl with other drugs to increase potency and profit,” said United States Attorney Martin. “We will not, we cannot, rest in our efforts to stop these poisons from continuing to ruin people’s lives.”
Evidence presented at trial showed that on January 11, 2019, at approximately 9:30 a.m., officers from the Greensboro Police Department attempted to stop a gray Ford truck being operated by ALSTON on Flag Street near Sussmans Street in Greensboro. When a GPD officer tried to block the road in an attempt to stop ALSTON, he swerved, striking the officer’s vehicle and also sideswiping another vehicle parked on the south side of Flag Street. ALSTON continued on Flag Street toward Sussmans Street, where he drove through a park and out onto O’Connor Street. ALSTON then turned into a parking lot on O’Connor Street and exited the vehicle on foot while the truck was still in motion. The truck then struck two trees while ALSTON began running away from officers on foot. A GPD officer was able to stop the truck and put it in park, and when doing so observed a Glock model 22, .40 caliber handgun and a 50 round drum magazine lying in plain view on the passenger side floorboard, and, in the center console area of the truck, a bag containing approximately 21.91 grams of a mixture containing heroin, Fentanyl, and 4-ANPP.
A review by officers of ALSTON’s publically-available Instagram account resulted in discovery of a video of a person who appears to be ALSTON, dated December 31, 2018, holding a semi-automatic handgun with a silver slide over a black frame. The gun in the video also had a high capacity drum style magazine attached with visible ammunition and what appeared to be a laser assisted sighting system on the trigger guard, much like the firearm and magazine he was arrested with eleven days later.
Sentencing is scheduled for February 27, 2020, at 9:30 a.m., in Greensboro, before United States District Judge William L. Osteen, Jr. With regard to the drug offense, ALSTON 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, ALSTON faces a 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. And finally, for being a felon in knowing possession of a firearm, ALSTON 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.
The case was investigated by the Greensboro Police Department, NC Department of Probation and Parole, and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant United States Attorneys Veronica L. Edmisten and Clifton T. Barrett.
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Durham Man Caught by Alamance County Child Exploitation Operation Sentenced to 10 Years in PrisonRead the Press Release
GREENSBORO, N.C. – A man who pleaded guilty to attempted enticement of a minor was sentenced today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
I. JEFFREY BRANDEIS, 49, of Durham, North Carolina, pleaded guilty on July 25, 2019, to one count of attempted enticement of a minor. He was sentenced today by United States District Judge N. Carlton Tilley, Jr. to 120 months of imprisonment followed by 15 years of supervised release.
In September 2018, BRANDEIS used a popular chat application to contact an individual purporting to be a 13 year-old girl, but that was actually an undercover detective with the Alamance County Sheriff’s Office. BRANDEIS exchanged more than one thousand text messages with the undercover detective for several months, with many of those messages being of a sexual nature. BRANDEIS was arrested after he traveled to a park in Graham on the night of January 2, 2019, for the purpose of engaging in indecent liberties with a minor, as shown in his text messages.
Investigators seized BRANDEIS’S phone and, with the assistance of Homeland Security Investigations (HSI), found that the device had been used to navigate to websites that contained child pornography. Investigators subsequently seized BRANDEIS’s computer and examined it. Child pornography artifacts discovered on the computer revealed that it has been used to access and download child pornography over several years.
The Alamance County Sheriff’s Office and Homeland Security Investigations (HSI) are both members of the North Carolina Internet Crimes Against Children (ICAC) Task Force. With the consistent support of HSI, the referenced undercover child exploitation operation conducted by the Alamance County Sheriff’s Office has resulted in multiple arrests and convictions.
This 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 Attorney Eric L. Iverson. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Attorney General Announces Launch of Project Guardian, A Nationwide Strategic Plan to Reduce Gun ViolenceRead the Press Release
Today, Attorney General William P. Barr announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.
Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.
“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”
“We are pleased to implement Project Guardian in central North Carolina. It complements our robust Project Safe Neighborhoods network and doubles down on reducing gun crime through aggressive federal prosecution, intelligence development and sharing, and using our background systems to keep guns out of the wrong hands,” said Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina. “ATF and the U.S. Attorney’s Office will work with our state and local partners to focus on reducing violent crime. Gun crime means hard time.”
“ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.”
“The ATF Charlotte Field Division looks forward to partnering with the U.S. Attorney’s Office, Middle District of North Carolina on Project Guardian,” said Vincent C. Pallozzi, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division. “Violent crime plagues our local communities and neighborhoods across the country. ATF remains on the frontline to address this problem directly and will support Project Guardian by utilizing Crime Gun Intelligence, technology, and established partnerships with local, state, and federal law enforcement to identify gun crime trends, and investigate and prosecute those individuals committing the violence. ATF Charlotte is committed to keeping our communities safe by removing illegal firearms from our streets and denying criminals access to firearms.”
Project Guardian’s implementation is based on five principles:
- Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
- Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
- Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
- Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety.
Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
- Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.
For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.
Two Men Sentenced in Rowan County Drug Distribution ConspiracyRead the Press Release
GREENSBORO, N.C. – A Rowan County man and a resident of Cartersville, Georgia were each sentenced to prison for acts committed in a conspiracy to distribute methamphetamine in Salisbury, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
DANIEL DEWAYNE WOOD, 41, of Rockwell, N.C., pleaded guilty on April 24, 2019, to one count of possession with intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine. WOOD was sentenced on November 6, 2019, by United States District Judge William L. Osteen, Jr.to 100 months’ imprisonment, followed by 3 years of supervised release.
ROBERT EARL HOLCOMB, age 64, pleaded guilty on March 8, 2019, to one count of conspiracy to distribute methamphetamine. HOLCOMB was sentenced on November 7, 2019, by United States District Judge N. Carlton Tilley, Jr. to 60 months of imprisonment, followed by 3 years of supervised release.
Both WOOD and HOLCOMB were among 60 defendants charged as part of a large-scale, multi-state methamphetamine distribution conspiracy.
These cases were investigated by the Rowan County Sheriff’s Office and the Department of Homeland Security, and prosecuted by Assistant United States Attorney Terry M. Meinecke for the Middle District of North Carolina.
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Durham Man Sentenced for Conspiracy to Rob Certain Business Owners in Their Homes and on Drug ChargesRead the Press Release
GREENSBORO, N.C. – A Durham man who participated in the home invasion robbery of a tobacco store owner was sentenced to prison Thursday, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
DEION TYRELL LILES, age 23, pleaded guilty on September 6, 2018, to distribution of cocaine, and on August 19, 2019, to conspiracy to interfere with commerce by robbery. LILES was sentenced for both convictions on November 7, 2019, by United States District Judge N. Carlton Tilley, Jr. to 84 months of imprisonment, followed by 3 years of supervised release.
LILES was one of eleven defendants identified as members of the Nine Trey Gangstas who committed acts of violence throughout North Carolina and along the entire east coast of the United States. That gang systematically targeted Middle Eastern and Asian business owners for home-invasion robberies after discovering that these owners often kept the proceeds of their respective businesses at their homes. LILES was one of seven defendants who took part in the robbery of a tobacco store owner at the store owner’s Durham home on December 20, 2016. Gang members including LILES had followed the store owner from his tobacco store business to his residence prior to the robbery.
This case was investigated by the Federal Bureau of Investigation, the Durham Police Department, and the Durham County Sheriff’s Office, and was prosecuted by Assistant United States Attorney Terry M. Meinecke for the Middle District of North Carolina.
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Felon with Ammunition Sentenced to 108 Month ImprisonmentRead the Press Release
GREENSBORO, N.C. - A Lee County resident was sentenced today in federal court in Greensboro for knowingly possessing ammunition after previously being convicted of a felony, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
JAMAR LACOBLY ALSTON, age 33, of Sanford, North Carolina, was sentenced to a 108 month term of imprisonment by Senior United States District Judge N. Carlton Tilley, Jr. In addition to prison time, ALSTON was ordered to serve three years of supervised release and to pay a special assessment of $100.00. ALSTON pleaded guilty on August 1, 2019, to knowing possession of CBC and Winchester .45 caliber ammunition after having previously been convicted of a felony offense punishable by imprisonment for more than one year.
Court records show that at approximately 1:48 a.m. on January 1, 2018, ALSTON fired three shots from a .45 caliber handgun during an altercation at the Elks Lodge in Sanford, North Carolina. The handgun was never recovered. However, a high-resolution surveillance video of the incident shows ALSTON instigated a fistfight with a person in the bar area, and during that altercation, grab an object from the right-side pocket of his coat. Moments later, while ALSTON’s back was to the surveillance camera, he fired three shots toward the man with whom he was fighting. All three shots missed. The video shows three shell casings hit the ground. Sanford Police were called to the scene and recovered the shell casings, but not the handgun used in the incident.
At sentencing, after reviewing the surveillance video of the shooting, Judge Tilley applied a cross reference under the sentencing guidelines for attempted first-degree murder and sentenced ALSTON to 108 months.
ALSTON has a 2010 conviction in Lee County for felony conspiracy to commit assault with a deadly weapon causing serious injury, which resulted in a term of imprisonment of 15 to 18 months.
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 Tanner L. Kroeger.
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Department of Justice Awards More Than $165 Million in Public Safety Funding to the State of North CarolinaRead the Press Release
RALEIGH, NC – The Department of Justice today announced awards of more than $165 million to support public safety efforts in the state of North Carolina. The funding from the Office of Community Oriented Policing Services (COPS), Office of Justice Programs (OJP), and Office on Violence Against Women (OVW) will support violent crime reduction, opioid/substance abuse reduction efforts, school safety, victim services, transitional housing for domestic violence victims, law enforcement activities, justice mental health, and juvenile justice.
“The Department of Justice is very pleased to provide these critical public safety resources not only to local law enforcement agencies throughout North Carolina, but also to state-level agencies for the benefit of all North Carolinians,” said Director Phil Keith. “This funding will secure schools and protect kids from crime and violence across the state, and help to combat the scourge of deadly drugs running rampant in our communities.”
“Helping to protect North Carolinians—and all Americans—is job number one for the Department of Justice and the Office of Justice Programs,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “I’m proud to make these resources available to the brave crime-fighters, compassionate service providers and dedicated criminal and juvenile justice professionals who work so hard, day in and day out, to safeguard the communities of this great state.”
COPS Office Director Phil Keith made the announcement in Raleigh on Friday morning along with Governor Roy Cooper, U.S. Attorney for the Eastern District of North Carolina Robert J. Higdon, Jr., U.S. Attorney for the Middle District of North Carolina Matthew G.T. Martin, and North Carolina State Bureau of Investigation (SBI) Director Bob Schurmeier. The North Carolina Department of Public Safety received approximately $2.9 million from the COPS Office for investigating illicit activities related to heroin distribution and methamphetamine trafficking, and the North Carolina Department of Public Instruction (DPI) was the only statelevel agency to receive funding to improve school security through the 2019 COPS School Violence Prevention Program. Additional school safety funding was provided to both the North Carolina SBI and DPI through OJP’s Bureau of Justice Assistance for behavioral threat assessments and the enhancement of the North Carolina State School Safety Center.
“North Carolina law enforcement will be better able to keep our communities safe and stop drug traffickers with this vital funding,” said Governor Roy Cooper. “Federal support for local expertise is the right way to fight the opioid epidemic and to protect our schools. These grants will go a long way in making sure North Carolinians live in safe communities.”
“Supporting law enforcement at every level and all across the State of North Carolina goes to the heart of the mission of the U.S. Department of Justice,” said Mr. Higdon. And these grants provide much needed resources and funding to law enforcement agencies as they work to protect our communities from violence, drug trafficking and any others who threaten our safety and security.”
“The grants announced today by the U.S. Department of Justice represent a significant investment in support of law enforcement and public safety in North Carolina,” said U.S. Attorney Matt Martin. “We are particularly pleased that grants in the Middle District will support school safety programs, the fight against opioid addiction, and the coordinated efforts under way to reduce gun violence from Durham to Winston-Salem and Rockingham County to Cabarrus County. These are critical priorities of all three U.S. Attorneys; to borrow an apt adage: we are putting our money where our mouth is.”
“These grants will allow SBI agents across North Carolina to more effectively partner with our police departments and sheriff’s offices to continue the fight against the opioid epidemic,” said SBI Director Bob Schurmeier. “Families in our state have suffered enormous pain and loss and we grieve with them. We will use these resources to go after the cartels, traffickers and dealers and bring them to justice. We are grateful to the COPS Office and the US Department of Justice for their support of North Carolina and the State Bureau of Investigation.”
A full list of COPS awards is available online at https://cops.usdoj.gov/grants. OJP awards, organized under specific grant programs, are available online at https://ojp.gov/funding/Explore/OJPAwardData.htm. For OVW awards, visit https://www.justice.gov/ovw/awards.
About the Office of Community Oriented Policing Services:
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 130,000 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.
About the Office of Justice Programs:
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
About the Office on Violence Against Women:
The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
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Owners of Greensboro Temporary Staffing Firms Indicted for Employment Tax FraudRead the Press Release
WASHINGTON – A federal grand jury indicted two Greensboro, North Carolina, women yesterday with conspiring to defraud the United States and for failing to pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney for the Middle District of North Carolina Matthew G.T. Martin.
According to the indictment, Rebecca Adams and her daughter Elizabeth Wood, who operated a temporary staffing business in Greensboro, conspired to defraud the government by withholding taxes from employees’ paychecks and failing to pay those taxes over to the Internal Revenue Service (IRS). Adams and Wood also allegedly created Forms W-2 for the staffing business employees but failed to file these forms with the government as they were required to do. Instead of paying the taxes they withheld from employees, the indictment alleges that Adams and Wood used the funds to pay for personal expenses, such as a personal maid, personal landscaping services, and pet spa services. The staffing business allegedly changed names twice, even though it did not otherwise change its actual business operations. Adams was also charged with tax evasion based on her allegedly evading payment of more than $400,000 in previously assessed employment taxes and penalties to the IRS.
If convicted, Adams faces a statutory maximum sentence of five years in prison for each charge of conspiracy, employment tax fraud, and tax evasion. Wood faces a statutory maximum sentence of five years in prison for each charge of conspiracy and employment tax fraud. They also face a period of supervised release and monetary penalties.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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 United States Attorney Frank Chut, who are prosecuting the case.
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Owners of Greensboro Temporary Staffing Firms Indicted for Employment Tax FraudRead the Press Release
A federal grand jury indicted two Greensboro, North Carolina, women yesterday with conspiring to defraud the United States and for failing to pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney for the Middle District of North Carolina Matthew G.T. Martin.
According to the indictment, Rebecca Adams and her daughter Elizabeth Wood, who operated a temporary staffing business in Greensboro, conspired to defraud the government by withholding taxes from employees’ paychecks and failing to pay those taxes over to the Internal Revenue Service (IRS). Adams and Wood also allegedly created Forms W-2 for the staffing business employees but failed to file these forms with the government as they were required to do. Instead of paying the taxes they withheld from employees, the indictment alleges that Adams and Wood used the funds to pay for personal expenses, such as a personal maid, personal landscaping services, and pet spa services. The staffing business allegedly changed names twice, even though it did not otherwise change its actual business operations. Adams was also charged with tax evasion based on her allegedly evading payment of more than $400,000 in previously assessed employment taxes and penalties to the IRS.
If convicted, Adams faces a statutory maximum sentence of five years in prison for each charge of conspiracy, employment tax fraud, and tax evasion. Wood faces a statutory maximum sentence of five years in prison for each charge of conspiracy and employment tax fraud. They also face a period of supervised release and monetary penalties.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Martin thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Kevin Schneider of the Tax Division and Assistant United States Attorney Frank Chut, who are prosecuting the case.
Rowan County Drug Dealers Sentenced to PrisonRead the Press Release
GREENSBORO, N.C. – Two Rowan County men were sentenced to prison on October 4, 2019, for unrelated instances of selling narcotics, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
WILLIE EARL WILLIAMS, JR., age 34, of Salisbury, North Carolina, was sentenced to 98 months’ imprisonment by the Honorable N. Carlton Tilley, Jr., in federal court in Greensboro. WILLIAMS pleaded guilty to distribution of a mixture and substance containing 5 grams or more of methamphetamine in Rowan County. In addition to the prison term he was ordered to serve a five-year term of supervised release after completing his sentence. According to documents filed in court, WILLIAMS sold methamphetamine or cocaine base (“crack”) on six occasions between May 9, 2018, and June 5, 2018, to a confidential informant and to an undercover officer.
JOSHUA DWAYNE PRUITT, age 26, of Spencer, was also sentenced by Judge Tilley in federal court in Greensboro on October 4, 2018, to 17 months’ imprisonment. PRUITT pleaded guilty to distribution of a mixture and substance containing cocaine base. In addition to the prison term he was ordered to serve a three-year term of supervised release after completing his sentence. PRUITT sold 3.32 grams of crack cocaine to an undercover agent in Salisbury on May 15, 2018.
Both cases were investigated by the Rowan County Sheriff’s Department, Salisbury Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives, in a joint operation to combat firearm and controlled substance violations within Salisbury. The cases were prosecuted by Assistant United States Attorney Terry M. Meinecke.
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Lee County Offenders Collect More Than 78 Years in Federal Prison Sentences for Firearm, Drug OffensesRead the Press Release
GREENSBORO, N.C. – Since the beginning of 2019, federal judges have sentenced defendants with charges originating in Lee County, North Carolina, to an aggregate total of 942 months in federal prison, announced U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.
In the most recent case, LEO VISTOR PERCELL, JR., age 43, of Sanford, North Carolina, was sentenced today by Senior United States District Judge N. Carlton Tilley, Jr. to 70 months imprisonment. PERCELL was also ordered to serve three years of supervised release. PERCELL pleaded guilty on July 10, 2019 to distributing fentanyl. Court records show that in March 2017, PERCELL sold seven grams of fentanyl, which he represented to be heroin, to an informant working with the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Sanford Police Department.
“Our state and local law enforcement partners are working hand in hand with federal prosecutors and agents to improve public safety in Sanford and Lee County,” said U.S. Attorney Martin. “We will continue working together to implement data-driven Project Safe Neighborhood strategies to reduce violent crime by focusing on gun violators and other criminals in the area.”
Today’s sentencing is the most recent event in a series of cases resulting from a coordinated effort among federal, state, and local law enforcement intended to reduce violent and gun-related crime in Sanford and Lee County. At least 12 defendants from the area, including LEO PERCELL, have been sentenced for firearm or drug offenses in U.S. District Court for the Middle District of North Carolina in 2019. Several others have pleaded guilty and are scheduled to be sentenced before the end of the year. The cases from Sanford/Lee County which have been or are set for sentencing include the following:
• Jamar Lacobly Alston, 32, of Broadway, NC – pleaded guilty 8/1/19 to felon in possession of ammunition; sentencing scheduled for 11/7/19;
• Joshua Tajhai Brewington, 25, of Sanford -- pleaded guilty 8/8/19 to felon in possession of a firearm; sentencing scheduled for 10/28/19;
• Christopher Clamon Bridges, 31, of Sanford -- pleaded guilty 10/5/18 to felon in possession of ammunition; sentenced 1/29/19 to 18 months imprisonment, 3 years supervised release;
• Robert Bernard Fox, II, 19, of Sanford -- pleaded guilty 7/8/19 to receipt of a firearm by a person under indictment; sentenced 9/27/19 to 20 months imprisonment, 3 years supervised release;
• Jimanda Dwayne Gibbs, 43, of Sanford -- pleaded guilty 8/16/19 to felon in possession of a firearm; sentenced 8/16/19 to 30 months imprisonment, 3 years supervised release;
• Maurice Danjuan Gill, 44, of Sanford -- pleaded guilty 3/7/19 to distribution of cocaine base and possession of a firearm in furtherance of a drug trafficking crime; sentenced 6/21/19 to 117 months imprisonment, 5 years supervised release;
• Randy Ross Hunter, 41, of Sanford -- pleaded guilty 3/7/19 to felon in possession of a firearm; sentenced 6/21/19 to 180 months imprisonment, 5 years supervised release;
• Travon Emmanuel Jones, 28, of Sanford -- pleaded guilty 10/5/18 to possession with intent to distribute heroin and possession of a firearm in furtherance of a drug trafficking crime; sentenced 4/25/19 to 75 months imprisonment, 3 years supervised release;
• Dennis Minter, 36, of Sanford -- pleaded guilty 3/7/19 to distribution of cocaine base; sentenced 6/20/19 to 182 months imprisonment, 5 years supervised release;
• Everette Lee Petty, 55, of Sanford -- pleaded guilty 8/20/19 to possession of cocaine base; sentenced 9/6/19 to 120 months imprisonment, 3 years supervised release;
• Tiyon Nathan Turner, 22, of Sanford -- pleaded guilty 8/9/18 to felon in possession of a firearm and possession of marijuana; sentenced 2/11/19 to 130 months imprisonment, 5 years supervised release.
An additional defendant, DONTEZ LEVERT PERCELL, 28, of Sanford, was indicted April 29, 2019, on one count of distribution of heroin. That charge is still pending, and the defendant is presumed innocent unless and until proven guilty by admissible evidence in a court of law.
Each of these cases was investigated by one or more of these agencies: the Sanford Police Department, Lee County Sheriff’s Office, North Carolina State Highway Patrol, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The cases were prosecuted by Assistant United States Attorneys Rob A.J. Lang, Tanner L. Kroeger, Anand P. Ramaswamy, JoAnna M. McFadden, and Nicole R. DuPré of the Middle District of North Carolina.
These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. Learn more about Project Safe Neighborhoods.
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Felon with a Firearm Sentenced to 92 Months ImprisonmentRead the Press Release
GREENSBORO, N.C. B A Rowan county resident was sentenced September 27 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.
LAMICHAEL DONELL FEAMSTER, age 27, of Salisbury, North Carolina, was sentenced to a 92 month term of imprisonment by Senior United States District Judge N. Carlton Tilley, Jr. In addition to prison time, FEAMSTER was ordered to serve three years of supervised release and to pay a special assessment of $100.00. FEAMSTER pleaded guilty on July 8, 2019 to knowing possession of a 9mm handgun even though he had previously been convicted of a felony offense punishable by imprisonment for more than one year.
Court records show that on July 16, 2018, officers with the Salisbury Police Department attempted to serve FEAMSTER with an outstanding warrant for arrest at a residence in Salisbury. When they arrived, Feamster was standing on the sidewalk near the rear of the apartment. When instructed to walk toward the officers, FEAMSTER instead fled into the apartment, where he was apprehended soon after. During FEAMSTER’s arrest, a silver 9mm SSCY Industries handgun fell out of his waistband. The firearm had been reported stolen in May of 2018. Detectives reviewed video surveillance footage of the incident in which the firearm was stolen and positively identified him from the video footage. FEAMSTER has a 2014 conviction for felony eluding arrest, which resulted in a term of imprisonment of 7 to 18 months.
The case was investigated by the Salisbury Police Department 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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Former Forsyth County Commissioner Arrested for Filing False Tax Returns and Failing to File a Tax ReturnRead the Press Release
A former Forsyth County Commissioner was arrested today on charges of filing false tax returns and failing to file a federal 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 of the Middle District of North Carolina.
On Sept. 30, 2019, a federal grand jury in Greensboro, North Carolina, returned an indictment charging Witherspoon with three counts of filing a false tax return and one count of failing to file a federal tax return. The indictment was unsealed following Witherspoon’s arrest.
According to the indictment and other court documents, Everette Witherspoon, Jr., of Forsyth County was a managing member of “Chris’s Rehablative [sic] Services” (CRS), a mental health services provider, in Greensboro, North Carolina. Witherspoon also allegedly co-owned and operated two tax return preparation businesses - Quick Taxes LLC, in Greensboro, and Fast Tax Inc., in Winston-Salem. For the 2013 through 2015 tax years, Witherspoon allegedly filed false personal tax returns with the Internal Revenue Service (IRS) by not reporting his county commissioner wages on those returns, and falsely underreporting his gross receipts for CRS as well as his total income. The indictment also charges that despite having gross income in excess of the filing requirements set by federal law, Witherspoon failed to file a personal income tax return with the IRS for 2012.
If convicted, Witherspoon faces a statutory maximum sentence of three years for each count of filing a false tax return and one year in prison for the remaining charged count. He also faces a period of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed. A defendant is 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 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.
Former Forsyth County Commissioner Arrested for Filing False Tax Returns and Failing to File a Tax ReturnRead the Press Release
WASHINGTON – A former Forsyth County Commissioner was arrested today on charges of filing false tax returns and failing to file a federal 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 of the Middle District of North Carolina.
On Sept. 30, 2019, a federal grand jury in Greensboro, North Carolina, returned an indictment charging Witherspoon with three counts of filing a false tax return and one count of failing to file a federal tax return. The indictment was unsealed following Witherspoon’s arrest.
According to the indictment and other court documents, Everette Witherspoon Jr., of Forsyth County, was a managing member of “Chris’s Rehablative [sic] Services” (CRS), a mental health services provider, in Greensboro, North Carolina. Witherspoon also allegedly co-owned and operated two tax return preparation businesses - Quick Taxes LLC, in Greensboro, and Fast Tax Inc., in Winston-Salem. For the 2013 through 2015 tax years, Witherspoon allegedly filed false personal tax returns with the Internal Revenue Service (IRS) by not reporting his county commissioner wages on those returns, and falsely underreporting his gross receipts for CRS as well as his total income. The indictment also charges that despite having gross income in excess of the filing requirements set by federal law, Witherspoon failed to file a personal income tax return with the IRS for 2012.
If convicted, Witherspoon faces a statutory maximum sentence of three years for each count of filing a false tax return and one year in prison for the remaining charged count. He also faces a period of supervised release and monetary penalties.
An indictment merely alleges that crimes have been committed. A defendant is 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 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.
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North Carolina Office Manager Sentenced to Prison for Employment Tax FraudRead the Press Release
A New London, North Carolina, woman was sentenced to 14 months in prison today for federal employment tax fraud, 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, from approximately 1992 through at least September 2016, Terra Ferguson was employed as an office manager at a pediatric office in Randolph County, North Carolina. As office manager, Ferguson had complete control over the office’s finances. Ferguson was also responsible for collecting, accounting for, and paying over to the Internal Revenue Service (IRS) payroll taxes that were withheld from the wages of the business’ employees. From March 2011 through September 2016, Ferguson withheld approximately $78,937 in payroll taxes from employee paychecks and willfully failed to pay that money to the IRS. Ferguson also failed to pay $35,472 for the employer’s share of employment taxes. Instead of paying these taxes to the IRS, Ferguson paid her personal credit card bills, funded personal business ventures involving a mountain cabin rental and a bar, paid for personal vacations, and issued checks to herself totaling $1.4 million, all from the business’ bank account.
Additionally, Ferguson prepared false individual income tax returns for her employer that falsely underreported gross receipts and inflated mortgage interest deductions, causing an additional tax loss of over $250,000. The total tax loss resulting from Ferguson’s fraudulent conduct is approximately $374,101.
On May 17, 2019, Ferguson pleaded guilty to one count of failing to collect, account for, or pay over payroll taxes for the employment tax quarter ending Dec. 31, 2015.
In addition to the term of imprisonment imposed, Ferguson was ordered to serve three years of supervised release and to pay $374,101 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Mara Strier and Alexander Effendi of the Tax Division and Assistant United States Attorney Frank Chut, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Office Manager Sentenced to Prison for Employment Tax FraudRead the Press Release
WASHINGTON – A New London, North Carolina, woman was sentenced to 14 months in prison today for federal employment tax fraud, 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, from approximately 1992 through at least September 2016, Terra Ferguson was employed as an office manager at a pediatric office in Randolph County, North Carolina. As office manager, Ferguson had complete control over the office’s finances. Ferguson was also responsible for collecting, accounting for, and paying over to the Internal Revenue Service (IRS) payroll taxes that were withheld from the wages of the business’ employees. From March 2011 through September 2016, Ferguson withheld approximately $78,937 in payroll taxes from employee paychecks and willfully failed to pay that money to the IRS. Ferguson also failed to pay $35,472 for the employer’s share of employment taxes. Instead of paying these taxes to the IRS, Ferguson paid her personal credit card bills, funded personal business ventures involving a mountain cabin rental and a bar, paid for personal vacations, and issued checks to herself totaling $1.4 million, all from the business’ bank account.
Additionally, Ferguson prepared false individual income tax returns for her employer that falsely underreported gross receipts and inflated mortgage interest deductions, causing an additional tax loss of over $250,000. The total tax loss resulting from Ferguson’s fraudulent conduct is approximately $374,101.
On May 17, 2019, Ferguson pleaded guilty to one count of failing to collect, account for, or pay over payroll taxes for the employment tax quarter ending Dec. 31, 2015.
In addition to the term of imprisonment imposed, Ferguson was ordered to serve three years of supervised release and to pay $374,101 in restitution to the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Mara Strier and Alexander Effendi of the Tax Division and Assistant United States Attorney Frank Chut, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
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Greensboro Man Sentenced to Ten Years in Prison in Child Pornography CaseRead the Press Release
GREENSBORO, N.C. – A Greensboro man who pleaded guilty to receipt of child pornography was sentenced on August 21, 2019, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
JORDAN CLARK WAGNER, 36, of Greensboro, North Carolina, pleaded guilty on April 1, 2019, to one count of receipt of child pornography. He was sentenced by United States District Judge William L. Osteen, Jr. to 120 months of imprisonment followed by 15 years of supervised release. He was ordered to pay a total of $29,000 in restitution to eight victims.
In 2017, investigators with both the Greensboro Police Department (GPD) and Homeland Security Investigations (HSI) were pursuing leads indicating that WAGNER was involved in the receipt and distribution of child pornography. In March 2018, investigators with GPD executed a search warrant at WAGNER’s residence. HSI provided assistance. GPD investigators seized multiple devices that contained child pornography, however they were unable to gain access to WAGNER’s locked phone. Ultimately, the phone was sent to North Carolina Crime Lab Digital Evidence Unit where forensic experts were able to access much of the phone’s information. WAGNER’s phone contained 294 images and 167 videos constituting child pornography. Further, investigators learned that WAGNER had used the phone to engage in sexual chats and image transfers with multiple individuals purporting to be minor boys 13, 14, and 15 years of age.
The Greensboro Police Department (GPD) and Homeland Security Investigations (HSI) are both members of the North Carolina Internet Crimes Against Children (ICAC) Task Force. The case was prosecuted by Assistant United States Attorney Eric L. Iverson.
It was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Durham Clinician Receives Active Prison Sentence for Fraudulently Obtaining SuboxoneRead the Press Release
GREENSBORO, N.C. B A Durham-based clinician was sentenced today in federal court in Greensboro on charges that he used the DEA registration number of another person to acquire suboxone, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
BASIL DERRICK HALLIDAY, age 57, a resident of Rougemont, North Carolina, was sentenced to a five month term of imprisonment by Senior United States District Judge N. Carlton Tilley, Jr. The term will run consecutive to another five month term imposed because HALLIDAY committed the drug offense while on probation for a 2013 federal conviction for embezzlement from a government agency. In addition to prison time, HALLIDAY was ordered to serve 31 months of supervised release and to pay a special assessment of $500.00. HALLIDAY was convicted of the current charges after a two-day trial in March 2019.
In December 2013, a Diversion Investigator (DI) with the Drug Enforcement Administration received a complaint that HALLIDAY, the President and Owner of Adaptive Integrated Methods (AIM), a drug addiction and mental health treatment clinic, was improperly dispensing suboxone (buprenorphone), a Schedule III controlled substance. In furtherance of the investigation, the DI obtained numerous invoices from Clinic Pharmacy documenting HALLIDAY’s purchases of suboxone. HALLIDAY, however, is not a physician and does not have a license to dispense suboxone or other controlled substances. The pharmacy invoices noted the ordering physician was S.J., and included S.J.’s DEA registration number. S.J. , however, did not authorize the purchases of suboxone.
“We are pleased that the Court ordered active time for this defendant. I hope it sends a strong message about illegally distributing legal drugs. We must stop the flow of opioids to the street. I commend DEA and AUSAs DeFranco and DuPre for their excellent work,” said U.S. Attorney Martin.
The case was investigated by the United States Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorneys Michael A. DeFranco and Nicole R. DuPre.
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Greensboro Man Sentenced to 7 Years in Prison in Child Pornography Case That Involved Thousands of ImagesRead the Press Release
Winston-Salem, N.C. – A man who pleaded guilty to receipt of child pornography was sentenced today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
MARK DENVER TOWNSEND, 48, of Greensboro, North Carolina, pleaded guilty on February 4, 2019, to one count of receipt of child pornography. He was sentenced by United States District Judge Loretta Copeland Biggs to 84 months of imprisonment followed by 10 years of supervised release. He was ordered to pay a total of $114,500 in restitution to eighteen victims.
In 2018, an investigator with the North Carolina SBI Computer Crimes Unit learned that an individual located at TOWNSEND’s residence was likely downloading child pornography using a sophisticated peer-to-peer network. The network is known to law enforcement and designed to allow users to anonymously share and download files. In October, the SBI investigator and a special agent with Homeland Security Investigations interviewed TOWNSEND at his residence. The investigators seized TOWNSEND’s external hard drive which contained 15,029 images and 1,502 videos constituting child pornography. The contraband files were located in a folder titled “CP” and sorted into sub-folders labeled “pics,” “mov,” and “to watch.” Their created-on dates ranged from June 2015 to August 2018.
The North Carolina State Bureau of Investigation (SBI) and Homeland Security Investigations (HSI) are both members of the North Carolina Internet Crimes Against Children (ICAC) Task Force. The case was prosecuted by Assistant United States Attorney Eric L. Iverson.
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.
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Gate City Transportation Sentenced for Health Care FraudRead the Press Release
WINSTON-SALEM, N.C. - A Greensboro-based medical transport company was sentenced today in federal court for health care fraud, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina and North Carolina Attorney General Josh Stein.
GATE CITY TRANSPORTATION, INC. was ordered to pay a $100 fine, a $400 special assessment, and restitution in the amount of $5,245,640.02 to the N.C. Fund for Medical Assistance by United States District Court Judge Loretta Copeland Biggs of the Middle District of North Carolina. The defendant corporation pleaded guilty to one count of health care fraud in October 2018.
“Fraud does not pay in the long run. With today’s judgment, taxpayers will get back over $5M that was taken from Medicaid,” said U.S. Attorney Martin, “This case demonstrates how agencies work together to find and stop healthcare fraud. I commend the IRS, the U.S. Department of Health and Human Services, and the NC AG’s office for their excellent work.”
“Corporations that defraud the Medicaid program are cheating taxpayers and taking away resources from people who need health care,” said Attorney General Josh Stein. “My office will continue to fight health care fraud and waste.”
In April 2008, GATE CITY TRANSPORTATION enrolled with the North Carolina Medicaid Program as an ambulance provider. Initially, GATE CITY TRANSPORTATION owned and operated convalescent ambulances. Convalescent ambulance services are used to provide non-emergency medical transportation to stretcher-bound patients.
From November 2010 until February 2015, GATE CITY TRANSPORTATION stopped operating convalescent ambulances and provided non-emergency transport to ambulatory and wheelchair bound clients using vans. The majority of GATE CITY TRANSPORTATION’s clients were Medicaid recipients. Medicaid did not directly reimburse companies for providing van transportation. GATE CITY TRANSPORTATION could have applied to the county Division of Social Services (DSS) for approval to provide non-emergency medical van transportation to ambulatory and wheelchair bound clients, but did not do so.
Despite providing van transportation, GATE CITY TRANSPORTATION continued to submit claims to Medicaid using ambulance codes which were reimbursed at a higher rate. GATE CITY TRANSPORTATION was deliberately ignorant to the false claims because it wanted to continue receiving the higher reimbursement rate. The false claims caused the Medicaid program to suffer a loss of over five million dollars.
During the investigation of GATE CITY TRANSPORTATION, law enforcement seized and forfeited more than $5 million in cash and property representing proceeds of the scheme. Federal authorities will request authorization to apply the forfeited funds toward restitution.
The case was investigated by the Internal Revenue Service-Criminal Investigations, the U.S. Department of Health and Human Services, and the North Carolina Attorney General’s Medicaid Investigations Unit. The case was prosecuted by former Assistant United States Attorney Robert M. Hamilton and Assistant United States Attorney Lisa B. Boggs.
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Durham Woman Sentenced to 18 Months for Elder Fraud AbuseRead the Press Release
WINSTON-SALEM, N.C. B A Durham resident was sentenced today in federal court in Winston-Salem on bank fraud and wire fraud charges, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
TERESA DENISE SCHNEIDER, age 52, of Durham, North Carolina, was sentenced to an 18 month term of imprisonment by United States District Judge Loretta Copeland Biggs. In addition, SCHNEIDER was ordered to serve five years of supervised release after completing her sentence, to make restitution in the amount of $336,173.89, and is subject to a forfeiture money judgment in the amount of $336,173.89. SCHNEIDER pleaded guilty to one count of bank fraud and one count of mail fraud in February 2019.
In 2010, SCHNEIDER was hired to help a retired doctor with meals, household cleaning, personal care, and shopping. SCHNEIDER also began to help her client pay his bills. In order to provide accountability, the client asked SCHNEIDER to provide copies of the monthly bank and credit card statements for all accounts held in his name to one of his sons. SCHNEIDER complied and emailed the monthly statements to her client’s son for his review. At no time did SCHNEIDER have signature authority on or any access to funds kept in any accounts, nor did she have her client’s power of attorney.
The client died in October 2013. While working on the father’s estate, his sons discovered that the statements provided by SCHNEIDER had been altered to remove and conceal transfers of funds to SCHNEIDER. Further investigation by the family and law enforcement revealed that SCHNEIDER had embezzled approximately $336,000.00 prior to the client’s death.
“Instead of honoring the elder she was hired to assist in his time of need, Ms. Schneider took advantage of her trusted position to defraud him. Thank you to the SBI and the US Postal Inspection Service for excellent work on this case. Financial fraud and exploitation of seniors in our communities is despicable. It violates federal law and all standards of decency,” said U.S. Attorney Martin. “It is a growing problem. That’s why the Department of Justice has made addressing elder fraud a priority, and why our office will aggressively investigate and prosecute these crimes.”
Locally, the United States Attorney’s Office works with the Federal Bureau of Investigation and the AARP to educate and inform senior Americans, their caregivers, and the public about fraud schemes targeting the elderly. The next program will take place at The Shepherd’s Center, 1700 Ebert Street, Winston-Salem, NC, on Monday, August 19, 2019 from 1:00 to 3:00 p.m.
The SCHNEIDER case was investigated by the North Carolina State Bureau of Investigation and the United States Postal Inspection Service. The case was prosecuted by Assistant United States Attorney Frank J. Chut, Jr.
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Serial Bank Robber Pleads GuiltyRead the Press Release
GREENSBORO, N.C. - Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that TYRONE THOMAS WOODS pleaded guilty to multiple bank robberies and a firearm charge.
WOODS, age 44, of Greensboro, North Carolina, pleaded guilty before Chief United States District Judge Thomas D. Schroeder in federal court in Winston-Salem.
WOODS pleaded guilty to four armed bank robberies, one bank robbery, and one count of brandishing a firearm during and in relation to a crime of violence. The armed bank robberies occurred in the following dates and locations:
• May 21, 2018 – SunTrust Bank, 5705 Gate City Blvd., Greensboro, NC;
• June 20, 2018 – Fidelity Bank, 1035 Randolph St., Thomasville, NC;
• July 23, 2018 – Piedmont Federal Savings Bank, 505 Pineview Dr., Kernersville, NC; and
• November 2, 2018 – Sharonview Federal Credit Union, 4418 Park Rd., Charlotte, NC.
WOODS also pleaded guilty to one count of bank robbery occurring on October 2, 2018, at PNC Bank, 823 South Main St., Kernersville, NC.
The defendant faces a maximum penalty on the robbery counts of not more than twenty-five years imprisonment, a fine of up to $250,000, or both. On the firearm count, the defendant faces a sentence of not less than seven years, nor more than life, that will run consecutive to the sentence imposed for the bank robberies. The defendant will also be subject to a term of supervised release of up to five years, and may be ordered to pay restitution. Sentencing will occur in Winston-Salem on November 20, 2019 at 2:00 p.m.
The case was investigated by the Greensboro Police Department, Thomasville Police Department, Kernersville Police Department, Charlotte-Mecklenburg Police Department, and the FBI Safe Streets Task Force. The case was prosecuted by Assistant United States Attorney Lisa B. Boggs.
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Bail Bondsman Pleads Guilty to Mail FraudRead the Press Release
GREENSBORO, N.C. - Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that MICHAEL KIRK SCHON pleaded guilty to a felony charge of mail fraud relating to a forfeiture of a bail bond.
SCHON, age 48, of Spotsylvania, Virginia, pleaded guilty before Chief United States District Judge Thomas D. Schroeder in federal court in Winston-Salem.
SCHON was licensed as a surety bail bondsman by the North Carolina Department of Insurance in 2014 and was employed by All American Bail Bonds, LLC, in Randleman, North Carolina. Bankers Insurance Company underwrote and served as surety on bail bonds issued by All American Bail Bonds, LLC. In 2013, All American Bail Bonds wrote $250,000 secured bond underwritten by Bankers Insurance Company, to secure release of an individual whose initials are F.S.L., in the alias name “Renaildo Santiago Dominguez.” F.S.L. had been arrested and charged with trafficking and other state drug charges in Superior Court in Guilford County. However, F.S.L. failed to appear and as a result the bail bond was declared forfeited on October 29, 2013.
Under state law, the Guilford County Board of Elections receives payment on forfeited bail bonds issued to secure the appearance of defendants charged in the District and Superior Courts in Guilford County. In March 2014, the Guilford County Board of Education and Banker’s Insurance Company, through SCHON, entered into a settlement agreement establishing a schedule for payments on the forfeited bond. The settlement agreement provided that scheduled payments would be waived if F.S.L. died before the due date of any payment. After the first scheduled payment of $80,000, SCHON procured and provided to the Guilford County Board of Education a false death certificate showing that F.S.L. had died on May 12, 2014, in Sinaloa, Mexico, when in fact F.S.L. was not dead. Relying on the false death certificate, the Board of Education issued a satisfaction of judgment cancelling the remaining $170,000 in payments.
The defendant faces a maximum penalty of twenty years imprisonment, a fine of up to $250,000, or both, and a term of supervised release of not more than three years. He may also be ordered to pay restitution. Sentencing will occur in Winston-Salem on November 19, 2019 at 9:30 a.m.
The case was investigated by the United States Postal Inspection Service and the North Carolina Department of Insurance. The case was prosecuted by Assistant United States Attorney Frank J. Chut.
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Rowan County Drug Dealer Sentenced to More Than 13 Years in Federal PrisonRead the Press Release
GREENSBORO, N.C. - Concord resident was sentenced on July 16, 2019, in federal court in Greensboro, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
The Honorable Catherine C. Eagles sentenced Eddy Antonio PERALTA, 35, of Concord, North Carolina, to a 165 month term of imprisonment on charges of possession with intent to distribute more than 500 grams of methamphetamine. In addition to 165 months imprisonment, PERALTA was ordered to serve five years of supervised release after completing his sentence. PERALTA pleaded guilty in January 2019.
In October 2017, officers with the Rowan County Sheriff’s Office received information that a black truck could be located at a garage near Blackwelder Baptist Church, and that the individual driving the truck was in possession of a quantity of methamphetamine. Surveillance was established near the garage, and a black Nissan Frontier truck was observed in the parking lot. A traffic stop was conducted as the vehicle left the parking lot. The officer recognized the driver as PERALTA based upon previous interactions with him, and knew that PERALTA did not have a valid driver’s license. As the officer processed the traffic offense, a second officer arrived and deployed his certified drug detection canine in order to conduct a free air sniff around the exterior of the Nissan Frontier. The canine gave a positive alert for the presence of the odor of narcotics, and a subsequent search of the vehicle resulted in the discovery of approximately 80 grams of a substance suspected to be crystal methamphetamine. PERALTA admitted that he had a pound of methamphetamine stored in a vehicle at his residence in Concord. Officers conducted a consent search at PERALTA’s home and located a large quantity of methamphetamine inside a disabled gray Honda. Laboratory analysis confirmed that the substance discovered inside the Honda was methamphetamine, with a total weight of 895 grams.
Prior to this arrest, PERALTA had been convicted of felony sexual assault, felony possession of cocaine, and possession of a firearm by a felon.
The case was investigated by the Rowan County Sheriff’s Office, Concord Police Department, and Homeland Security Investigations. The case was prosecuted by Assistant United States Attorney Terry M. Meinecke.
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Mount Airy Man Sentenced to 12 Years in Prison in Child Pornography Case That Involved Online Solicitation of MinorsRead the Press Release
GREENSBORO, N.C. – 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.
JARED THOMAS MARVIN, 24, of Mount Airy, North Carolina, pleaded guilty on January 9, 2019, to one count of transportation of child pornography. He was sentenced by United States District Judge Catherine C. Eagles to 144 months of imprisonment followed by 10 years of supervised release.
In 2017, the Surry County Sheriff’s Office received information from Massachusetts law enforcement that an individual residing in Mount Airy, North Carolina solicited child pornography from a 10 year old girl. Investigators with Surry County identified the individual as MARVIN and took possession of his electronic devices. In his online communication with the minor girl, MARVIN purported to be a pre-teen girl and distributed child pornography to the minor in an attempt to induce her to create and send him the same.
When questioned by investigators, MARVIN explained that he saw the 10 year old minor’s profile while browsing the social networking application Musical.ly. MARVIN admitted to possessing hundreds of child pornography files. He estimated that, over the years, he asked 100 girls between 11 and 15 years of age for images depicting their private parts and advised that his requests were successful 65-70% of the time.
“This case serves as a frightening reminder that predators lurk on popular social media applications and websites,” said United States Attorney Martin. “It is also a reminder that online sexual exploitation is a borderless crime that requires, as in this case, the hard work and cooperation of geographically distant law enforcement agencies. The United States Attorney’s Office is committed to ensuring that those who harm and endanger our children will face punishment for their repugnant behavior.”
The North Carolina State Bureau of Investigation (SBI) reviewed MARVIN’s devices and assisted with the investigation. SBI agents found 1,417 images and 673 videos constituting child pornography on four devices owned by MARVIN. Further, agents were able to identify and contact several minor girls with whom MARVIN inappropriately communicated.
This case was investigated by the Surry County Sheriff’s Office and North Carolina State Bureau of Investigation, both are members of the North Carolina Internet Crimes Against Children (ICAC) Task Force. The case was prosecuted by Assistant United States Attorney Eric L. Iverson.
It was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Burlington Man Sentenced to 60 Months in Prison for Possessing A Firearm SilencerRead the Press Release
GREENSBORO, N.C. –A Burlington man who possessed firearms silencers and discussed using them to shoot into a Raleigh federal building was sentenced to five years in prison on June 28, 2019, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
BOBBY JOHN KOBITO, age 56, pleaded guilty on March 22, 2019, to one count of possession of a firearm silencer. KOBITO was sentenced by United States District Judge N. Carlton Tilley, Jr. to 60 months of imprisonment, followed by 3 years of supervised release.
In January 2018, KOBITO traveled to a Raleigh mosque and asked about the credibility of a video on social media purportedly depicting a Raleigh Imam’s statements regarding killing persons of another faith. While KOBITO was friendly and non-confrontational during that visit, a Raleigh police officer who happened to be in the area saw binoculars and shooting targets in KOBITO’S car. The FBI then began an investigation to determine whether KOBITO planned to commit a criminal act in relation to the mosque.
Using an informant, the FBI engaged KOBITO through social media and later in person. KOBITO told the informant that he had done “hardcore recon” at the Raleigh mosque, but was now looking at a Raleigh government building that KOBITO believed was part of the National Security Agency (NSA), which KOBITO believed was spying on everyone. KOBITO told the informant of his desire to shoot into the federal building in Raleigh where he believed the NSA was located. KOBITO later discussed making and possessing a firearms silencer, to be used in the planned shooting of the federal building. When a search warrant for KOBITO’S Burlington apartment was executed on October 25, 2018, two devices found were later determined by the ATF to qualify as firearms silencers. KOBITO had not obtained the registration required under federal law in order to possess those silencers.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and prosecuted by Assistant United States Attorney Terry M. Meinecke for the Middle District of North Carolina.
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North Carolina Tax Return Preparer Sentenced to Prison for Conspiring to File False Tax ReturnsRead the Press Release
A Winston-Salem, North Carolina, resident was sentenced to 21 months in prison today for conspiring to defraud the United States by filing false 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 court documents, Claudia Lynette Shivers co-owned and operated two tax return preparation businesses: Fast Tax of Winston-Salem Inc. in Winston-Salem and Quick Taxes LLC in Greensboro. Shivers and her co-conspirators falsified items on clients’ tax returns, such as dependents and Schedule A deductions, in order to fraudulently maximize their refunds. Shivers also directed clients to hand-write false information on tax forms and other documents used in the preparation of their returns. Shivers further admitted that she held training sessions for her employees, during which she would instruct them on how to manipulate information on tax returns in order to obtain refunds to which clients were not entitled. Between January 2014 and April 2017, Shivers and her co-conspirators prepared approximately 519 false tax returns, which claimed approximately $1.3 million in false refunds from the Internal Revenue Service (IRS).
Shivers’ co-conspirator, Shannon DeWayne Patterson, was previously sentenced to 13 months imprisonment. Shivers’ other co-conspirators, Kristyn Dion Daney and Rakeem Lenell Scales, were sentenced to nine months and one day, and probation, respectively.
In addition to the term of imprisonment, U.S. District Court Judge William Osteen, Jr. ordered Shivers to serve three years of supervised release and to pay restitution of $38,266 to the IRS.
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 prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
North Carolina Tax Return Preparer Sentenced to Prison for Conspiring to File False Tax ReturnsRead the Press Release
WASHINGTON – A Winston-Salem, North Carolina, resident was sentenced to 21 months in prison today for conspiring to defraud the United States by filing false 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 court documents, Claudia Lynette Shivers co-owned and operated two tax return preparation businesses: Fast Tax of Winston-Salem Inc. in Winston-Salem and Quick Taxes LLC in Greensboro. Shivers and her co-conspirators falsified items on clients’ tax returns, such as dependents and Schedule A deductions, in order to fraudulently maximize their refunds. Shivers also directed clients to hand-write false information on tax forms and other documents used in the preparation of their returns. Shivers further admitted that she held training sessions for her employees, during which she would instruct them on how to manipulate information on tax returns in order to obtain refunds to which clients were not entitled. Between January 2014 and April 2017, Shivers and her co-conspirators prepared approximately 519 false tax returns, which claimed approximately $1.3 million in false refunds from the Internal Revenue Service (IRS).
Shivers’ co-conspirator, Shannon DeWayne Patterson, was previously sentenced to 13 months imprisonment. Shivers’ other co-conspirators, Kristyn Dion Daney and Rakeem Lenell Scales, were sentenced to nine months and one day, and probation, respectively.
In addition to the term of imprisonment, U.S. District Court Judge William Osteen, Jr. ordered Shivers to serve three years of supervised release and to pay restitution of $38,266 to the IRS.
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 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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Rowan County Meth Dealer Sentenced to 16 Years in PrisonRead the Press Release
GREENSBORO, N.C. - A North Carolina resident was sentenced to sixteen years in prison for on June 25, 2019, for distributing methamphetamine, conspiracy, and money laundering in Rowan County, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
SALVADOR VALADEZ, JR., age 37, of Salisbury, North Carolina, was sentenced to 192 months’ imprisonment by the Honorable Thomas D. Schroeder in federal court in Winston-Salem. VALADEZ pleaded guilty to conspiracy to distribute methamphetamine and conspiracy to commit money laundering in Rowan County. In addition to the prison term he was ordered to serve a five-year term of supervised release after completing his sentence.
According to documents filed in court, a multi-agency, multi-state investigation identified VALADEZ as a large-scale supplier of methamphetamine in Salisbury, Rowan County, North Carolina. Using a cooperating witness, agents recorded a sale of approximately four ounces of methamphetamine by VALADEZ on October 10, 2017, in Salisbury. Other persons engaged in drug trafficking who were identified in this investigation also indicated that VALADEZ was a drug distributor, selling quantities ranging from four ounces to one-half kilogram of methamphetamine. VALADEZ stated to others that he received his supply of methamphetamine by air smuggling and by mail, and that he transferred money to his suppliers through wire services.
This case was investigated by the Rowan County Sheriff’s Department, Salisbury Police Department, North Carolina State Bureau of Investigation, Mocksville Police Department, and Yadkinville Police Department. The case was prosecuted by Assistant United States Attorney Terry M. Meinecke.
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Forsyth County Man Sentenced to 13-1/2 Years in Prison for Distributing Child PornographyRead the Press Release
GREENSBORO, N.C. – A Forsyth County man who pleaded guilty to possession of child pornography was sentenced to 13-1/2 years in prison today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
KIP LANDON KALE, 38, of Lewisville, North Carolina, pleaded guilty on March 4, 2019, to one count of distribution of child pornography. He was sentenced today by United States District Judge N. Carlton Tilley, Jr. to 162 months of imprisonment followed by 25 years of supervised release. He was ordered to pay $5,000.00 in restitution to a victim depicted in a video he distributed.
In 2018, KALE was convicted of Possession of Obscenity with Intent to Disseminate in Davidson County and placed on probation. On January 1, 2019, a Federal Bureau of Investigation (FBI) Online Covert Employee (OCE) began communicating with “rockslyde007,” later identified as KALE, using a mobile messaging application. The OCE saw that rockslyde007 belonged to a group using that application known to be associated with trafficking child pornography, and engaged rockslyde007 in an online chat. User rockslyde007 sent the OCE two child pornography videos involving prepubescent minors and a hyperlink to a cloud storage account containing 56 additional child pornography videos. During the chat with the OCE, which continued until January 4, 2019, rockslyde007 claimed to have sexually exploited two minors under the age of ten.
On January 4, 2019, the FBI’s investigation traced IP addresses used by rockslyde007 to KALE’s residence and his place of employment. FBI agents responded to KALE’s residence the same day and, after confirming his phone matched the one used by rockslyde007, placed him under arrest.
This case was investigated by the Federal Bureau of Investigation, prosecuted by Assistant United States Attorney Eric L. Iverson, and 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.
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Guilford County Residents Indicted for Federal Gun, Drug ViolationsRead the Press Release
Greensboro, N.C. – Eight indictments returned by the grand jury at the end of May are the most recent cases resulting from a coordinated effort among federal, state, and local law enforcement intended to reduce repeat violent and gun-related crime in High Point, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
On May 28, 2019, the grand jury returned indictments charging the eight defendants, each of whom was previously convicted of at least one serious crime, with possession of a firearm by a convicted felon. One defendant was also charged with possession of oxycodone with intent to distribute.
The defendants and charges are as follows:
David Christopher STALLINGS, age 33, of High Point, NC, was charged with violations of Title 21, United States Code, Section 841(a)(1) and (b)(1)(C), possession with intent to distribute oxycodone, and Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), felon in possession of a firearm. The indictment alleges that on March 6, 2018, STALLINGS, having been previously convicted of a crime punishable by imprisonment for a term exceeding one year, possessed a Titan .25 caliber handgun and an AM-15 .223 caliber rifle. If convicted of possession with intent to distribute oxycodone, STALLINGS faces a maximum term of 20 years imprisonment. If convicted of felon in possession of a firearm, STALLINGS may be sentenced to a maximum term of 10 years imprisonment. Sentencing for the above offenses may also include 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.
Jerry DOUGLAS, Jr., age 33, of High Point, NC, was charged with a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), felon in possession of a firearm. The indictment alleges that on August 27, 2018, DOUGLAS, having been previously convicted of a crime punishable by imprisonment for a term exceeding one year, possessed Israeli Military Industries (IMI) ammunition. If convicted, DOUGLAS may be sentenced to a maximum of 10 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.
Crandall Ortais INGRAM, age 26, of High Point, NC, was charged with a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), felon in possession of a firearm. The indictment alleges that on October 17, 2018, INGRAM, having been previously convicted of a crime punishable by imprisonment for a term exceeding one year, possessed a Glock .40 caliber handgun. If convicted, INGRAM may be sentenced to a maximum term of 10 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.
Edwin Marquis BATES, age 30, of High Point, NC, was charged with a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), felon in possession of a firearm. The indictment alleges that on December 29, 2018, BATES, having been previously convicted of a crime punishable by imprisonment for a term exceeding one year, possessed an H.S. Products .40 caliber handgun. If convicted, BATES may be sentenced to a maximum term of 10 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.
Eddie Bernard BRATTON, age 39, of Greensboro, NC, was charged with a violation of Title 18, United States Code, Sections 922(g) (1) and 924(a)(2), felon in possession of a firearm. The indictment alleges that on January 18, 2019, BRATTON, having been previously convicted of a crime punishable by imprisonment for a term exceeding one year, possessed an Astra .25 caliber handgun. If convicted, BRATTON may be sentenced to a maximum term of 10 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.
Zytae Tyshawne BASKINS, age 24, of High Point, NC, was charged with a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), felon in possession of a firearm. The indictment alleges that on March 19, 2019, BASKINS, having been previously convicted of a crime punishable by imprisonment for a term exceeding one year, possessed a Taurus International 9mm handgun. If convicted, BASKINS may be sentenced to a maximum term of 10 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.
Nicholas Jermaine ROBINSON, age 24, of Greensboro, NC, was charged with a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), felon in possession of a firearm. The indictment alleges that on March 19, 2019, ROBINSON, having been previously convicted of a crime punishable by imprisonment for a term exceeding one year, possessed a Smith & Wesson 9mm handgun. If convicted, ROBINSON may be sentenced to a maximum term of 10 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.
Rodney Demarius HINES, age 26, of High Point, NC, was charged with a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), felon in possession of a firearm. The indictment alleges that on March 23, 2019, HINES, having been previously convicted of a crime punishable by imprisonment for a term exceeding one year, possessed a Jimenez Arms .380 caliber handgun. If convicted, HINES may be sentenced to a maximum term of 10 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.
An indictment is merely an allegation, and each defendant is presumed innocent unless and until proven guilty.
The cases indicted this month were investigated by the High Point Police Department, Guilford County Sheriff’s Office, North Carolina Department of Community Corrections, Thomasville Police Department, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. The cases are being prosecuted by Assistant United States Attorneys from the U.S. Attorney’s Office, Middle District of North Carolina, and a Special Assistant United States Attorney assigned to the U.S. Attorney’s Office from the office of Randolph County District Attorney Andrew Gregson.
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Rowan County Meth Dealers Sentenced to Federal PrisonRead the Press Release
GREENSBORO, N.C. - Two North Carolina residents were sentenced on May 28, 2019, for distributing drugs in Rowan County, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
Alfredo Arias BELLO, aka Alfredo Arias Vello, age 53, of Yadkinville, North Carolina, and Rodolfo VARGAS-BENITEZ, aka Luciano Vargas Benitez, age 37, of Mocksville, North Carolina, were sentenced in federal court in Greensboro by the Honorable Catherine C. Eagles. BELLO was sentenced to a 60-month term of imprisonment and VARGAS-BENITEZ was sentenced to 72 months. Both defendants pleaded guilty to distributing 50 grams or more of methamphetamine in Rowan County. In addition to these prison terms, both BELLO and VARGAS-BENITEZ were ordered to report to immigration authorities immediately upon discharge from the Bureau of Prisons and to serve a term of supervised release after completing their sentences.
According to documents filed in court, in approximately late 2017, a confidential informant (“CI”) approached law enforcement officers and told them he could purchase ounce quantities of methamphetamine from an individual later identified as BELLO. As a result, the CI contacted BELLO on January 16, 2018, and arranged for the purchase of two ounces of methamphetamine. An undercover officer (hereinafter “UC”) accompanied the CI during the transaction. Soon after arriving at the meeting location, the CI and UC observed a white SUV occupied by two males approach their vehicle. The UC exchanged $1300 for 43 grams of methamphetamine. The same procedure was utilized to make three additional purchase of methamphetamine from an individual subsequently identified as BELLO. Those purchases took place on February 1, 2018 (56 grams), April 18, 2018 (56 grams), and June 27, 2018 (116 grams). Each of those transactions took place in Rowan County, with the exception of the purchase on April 18, 2018, which took place in Yadkinville, North Carolina.
When the CI spoke with BELLO on the phone to work out details of the meeting on June 27, 2018, BELLO said “his supplier would be in a second vehicle.” Once BELLO arrived at the prearranged meeting location he placed a call to the CI and said his supplier was on the way. BELLO went on to explain that once his supplier arrived he would obtain the methamphetamine from the supplier before meeting with the informant. Shortly thereafter BELLO was observed meeting with a second Hispanic male, who was subsequently identified as VARGAS-BENITEZ. Only minutes later the UC completed the purchase of approximately four ounces of methamphetamine from BELLO.
Law enforcement officers conducting surveillance moved in and apprehended both BELLO and VARGAS-BENITEZ. The vehicles that Bello and VARGAS-BENITEZ drove to the meeting were searched. The center console of BELLO’s vehicle contained the money utilized to purchase the methamphetamine. The search of VARGAS-BENITEZ’s vehicle led to discovery of a purse that contained an additional quantity of methamphetamine. A small amount of methamphetamine was located in the front pocket of VARGAS-BENITEZ’s clothing.
This case was investigated by the Rowan County Sheriff’s Department, Salisbury Police Department, North Carolina State Bureau of Investigation, Mocksville Police Department, and Yadkinville Police Department. The case was prosecuted by Assistant United States Attorney Terry M. Meinecke.
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U.S. Attorney’s Office Promotes Elder Justice Initiative with Live Interactive Telephone Town HallRead the Press Release
GREENSBORO, N.C. -- The United States Attorney’s Office for the Middle District of North Carolina is promoting the Department of Justice’s Elder Justice Initiative throughout the Piedmont Triad area, announced U.S. Attorney Matthew G.T. Martin. On May 28, 2019, the Middle District partnered with the FBI and the AARP to conduct outreach and raise awareness to educate older adults about the latest scams so they do not fall victim. More than 4000 seniors in North Carolina dialed in to an interactive telephone town hall to learn about the latest financial scams. A recording of the town hall is available online here.
Scammers are targeting seniors at an alarming rate. Across the country, victims of all ages lost $2.71 billion dollars to fraud in 2018, according to statistics collected by the FBI’s Internet Crime Complaint Center. Victims over the age of 60 account for $649,227,724 of those losses. According to the same statistics, in North Carolina, more than 7,500 people lost more than $137 million dollars.
The DOJ Elder Justice Initiative aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educating older adults on how to identify scams and avoid getting ripped off by scammers; and promoting greater coordination with law enforcement partners.
Some examples of financial fraud targeting seniors discussed during the seminar are:
- Lottery phone scams – in which the callers convince seniors that a large fee or taxes must be paid before they can receive lottery winnings.
- Grandparent scams – which convince seniors that their grandchildren are in trouble and need money to make rent, repair a car, or even money for bail.
- Romance scams – which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose.
- IRS imposter scams – which defraud victims by posing as IRS agents and claiming that victims owe back taxes.
- Sham business opportunities – which convince victims to invest in lucrative business opportunities or investments.
Below are some tips shared with participants during the seminar on how to avoid falling victim to a financial scam:
- Don’t share personal information with anyone you don’t know.
- Don’t pay a fee for a prize or lottery winning.
- Don’t click on pop-up ads or messages.
- Delete phishing emails and ignore harassing phone calls.
- Don’t send gift cards, checks, money orders, wire money, or give your bank
- account information to a stranger.
- Don’t fall for a high-pressure sales pitch or a lucrative business deal.
- If a scammer approaches you, take the time to talk to a friend or family member.
- Keep in mind that if you send money once, you’ll be a target for life.
- Remember, it’s not rude to say, “NO.”
- A good rule of thumb is, if it sounds too good to be true, it’s likely a scam.
In March of this year, Attorney General William P. Barr and multiple law enforcement partners, including the FBI, announced the largest coordinated sweep of elder fraud cases in history. The Department took action in every federal district across the country, through the filing of criminal or civil cases. The cases brought during this sweep involved more than 260 defendants from around the globe who victimized more than two million Americans, most of them older adults. As part of the sweep, the Middle District of North Carolina charged, and obtained the guilty plea of, a woman who embezzled around $370,000 from an older person for whom she was a caretaker, using the money to pay for spa treatments, travel, college tuition, dining, and expensive shopping sprees. She will be sentenced in July 2019.
In another matter, Assistant U.S. Attorney Frank Chut secured the conviction of a woman who obtained credit card numbers and personal information from older residents of Davidson County, by calling victims and pretending to be calling from a hospital or pharmacy. The defendant was sentenced to fourteen months imprisonment, and was ordered to pay restitution to her victims for the more than $69,000 that she obtained through her scheme.
Attacking exploitation and fighting fraud are two priorities of the Middle District, and the U.S. Attorney’s office is committed to aggressively pursuing individuals who engage in such acts.
Elder abuse includes physical abuse, caregiver neglect, financial exploitation, psychological abuse, sexual abuse, and abandonment. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. You can also contact the Victim Connect Hotline between 9am-6pm, Monday through Friday, at: 1- 855-4VICTIM (1-855-4842846), or email the U.S. Attorney’s Office for the Middle District of North Carolina at [email protected].
For more information about the Elder Justice Initiative, please visit: https://www.justice.gov/elderjustice.
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North Carolina Man Sentenced to over Six Years in Prison for Medicaid Fraud and Tax Evasion ChargesRead the Press Release
A North Carolina man was sentenced to prison today for health care fraud related to the submission of false claims to Medicaid and for tax evasion, 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.
U.S. District Court Judge N. Carlton Tilley, Jr. of the Middle District of North Carolina sentenced Haydn Patrick Thomas, a resident of Durham, North Carolina, to a total sentence of 78 months in prison. On Sept. 5, 2018, Thomas pleaded guilty to one count of making a false statement relating to health care matters and one count of tax evasion for tax year 2014.
According to the documents filed with the court, Catinia Farrington owned Durham County Mental Health and Behavioral Health Services LLC (DCMBHS) in Durham, North Carolina. From 2011 through 2015, Farrington submitted thousands of false claims to Medicaid for services that were not performed. The false claims resulted in Medicaid paying approximately $4 million to DCMBHS. During the relevant period, Thomas worked as an office manager for an oral surgeon and provided Farrington with the names and Medicaid identification numbers of dental patients to facilitate the scheme.
In addition, Thomas evaded income taxes on the more than $1.4 million dollars he earned from DCMBHS by filing false tax returns with the Internal Revenue Service (IRS) and transferring money to various business bank accounts from which he paid his personal expenses. The resulting tax loss was approximately $518,000.
In addition to the term of imprisonment imposed, Thomas was order to serve three years of supervised release and to pay restitution in the amount of $3,950,656 to the North Carolina Fund for Medical Assistance and $518,997 to the IRS.
On March 1, 2019, Judge Tilley sentenced Farrington to 60 months in prison on one count of health care fraud conspiracy and one count of tax evasion. She was also ordered to pay over $4 million in total restitution to the North Carolina Fund for Medical Assistant and the IRS.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin commended special agents of the Internal Revenue Service and the U.S. Department of Health and Human Service, Office of Inspector General, who conducted the investigation, and Assistant United States Attorney Robert Hamilton (now retired), Trial Attorney Mara Strier of the Tax Division and Special Assistant U.S. Attorney Michael Heavner of the Medicaid Investigations Division of the North Carolina Attorney General’s Office, who prosecuted the case.
North Carolina Man Sentenced to Prison for Medicaid Fraud and Tax Evasion ChargesRead the Press Release
WASHINGTON - A North Carolina man was sentenced to prison today for health care fraud related to the submission of false claims to Medicaid and for tax evasion, 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.
U.S. District Court Judge N. Carlton Tilley, Jr. of the Middle District of North Carolina sentenced Haydn Patrick Thomas, a resident of Durham, North Carolina, to a total sentence of 78 months in prison. On September 5, 2018, Thomas pleaded guilty to one count of making a false statement relating to health care matters and one count of tax evasion for tax year 2014.
According to the documents filed with the court, Catinia Farrington owned Durham County Mental Health and Behavioral Health Services, LLC (“DCMBHS”) in Durham, North Carolina. From 2011 through 2015, Farrington submitted thousands of false claims to Medicaid for services that were not performed. The false claims resulted in Medicaid paying approximately $4 million to DCMBHS. During the relevant period, Thomas worked as an office manager for an oral surgeon and provided Farrington with the names and Medicaid identification numbers of dental patients to facilitate the scheme.
In addition, Thomas evaded income taxes on the more than $1.4 million dollars he earned from DCMBHS by filing false tax returns with the Internal Revenue Service (IRS) and transferring money to various business bank accounts from which he paid his personal expenses. The resulting tax loss was approximately $518,000.
In addition to the term of imprisonment imposed, Thomas was order to serve three years of supervised release and to pay restitution in the amount of $3,950,656 to the North Carolina Fund for Medical Assistance and $518,997 to the IRS.
On March 1, 2019, Judge Tilley sentenced Farrington to 60 months in prison on one count of health care fraud conspiracy and one count of tax evasion. She was also ordered to pay over $4 million in total restitution to the North Carolina Fund for Medical Assistant and the IRS.
Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Martin commended special agents of the Internal Revenue Service and the U.S. Department of Health and Human Service, Office of Inspector General, who conducted the investigation, and Assistant United States Attorney Robert Hamilton (now retired), Trial Attorney Mara Strier of the Tax Division and Special Assistant U.S. Attorney Michael Heavner of the Medicaid Investigations Division of the North Carolina Attorney General’s Office, who prosecuted the case.
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Orange County Drug Dealer Sentenced to 28 Years in Federal PrisonRead the Press Release
GREENSBORO, N.C. - A Cedar Grove resident was sentenced on May 21, 2019, in federal court in Greensboro, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
The Honorable William L. Osteen, Jr., sentenced Roderick Lamar SANFORD, 38, of Cedar Grove, North Carolina, to a 276 month term of imprisonment on charges of conspiracy to distribute heroin and a consecutive sentence of 60 months for possession of a firearm in furtherance of a drug related crime. In addition to a total of 336 months imprisonment, SANFORD was ordered to serve five years of supervised release after completing his sentence. SANFORD pleaded guilty in August 2018.
In March 2015, SANFORD was identified by the Orange County Sheriff’s Office as a distributor of heroin. After years of investigation, the evidence showed that SANFORD distributed personal-use quantities of drugs, in addition to supplying multiple mid-level drug traffickers. On March 2, 2018, a search warrant was executed at SANFORD’s residence which resulted in the seizure of four firearms, 42.61 grams of a mixture and substance containing a detectable amount of Fentanyl, drug paraphernalia, pills, cellular telephones, ammunition, Marihuana, and various documents. At sentencing, the Court described SANFORD’s behavior as “predatory” and held SANFORD responsible for distributing more than 8 kilograms of heroin over the period of the investigation, as well as other illicit drugs, and for using firearms to further his illegal drug trafficking activities.
“The defendant managed his drug organization by exploiting those closest to him through violence and by fueling their drug addictions. He used their drug dependence and acts of violence to force them deeper into his drug organization and even provided heroin to a girlfriend who was pregnant with his child,” said U.S. Attorney Martin. “The 28-year sentence imposed today reflects the severity of the defendant’s conduct and the generational harm that it caused. I commend the Drug Enforcement Administration and the Orange County Sheriff’s Office for their diligence in getting Sanford his due so that the community can begin healing.”
“The Roderick Sanford heroin distribution organization was the first major case initiated by my Office under the Coordinated Opioid Overdose Response Effort, and we are very satisfied with the sentence imposed,” said Orange County Sheriff Charles S. Blackwood. “We will continue to identify, prioritize, and target the most significant violators within this community. My office is committed to partnering with other local, state and federal law enforcement agencies to make our community safer.”
The case was investigated by the Orange County Sheriff’s Department and the Drug Enforcement Administration.
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North Carolina Office Manager Pleads Guilty to Employment Tax FraudRead the Press Release
A New London, North Carolina, woman pleaded guilty to employment tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina.
Terra Dawn Ferguson pleaded guilty to one count of failing to collect, account for, or pay over payroll taxes for the employment tax quarter ending Dec. 31, 2015.
According to court documents, from approximately 1992 through at least September 2016, Ferguson was employed as an office manager at a pediatric office in Randolph County, North Carolina. As office manager, Ferguson had complete control over the pediatric office’s finances. Ferguson was also responsible for collecting, accounting for, and paying over to the Internal Revenue Service (IRS) payroll taxes that were withheld from the wages of the business’ employees. From March 2011 through September 2016, Ferguson withheld approximately $78,937 in payroll taxes from employees’ paychecks and willfully failed to pay that money to the IRS. Ferguson also failed to pay $35,472 for the employer’s share of employment taxes. Instead of paying these taxes to the IRS, Ferguson paid her personal credit card bills, funded personal business ventures involving a mountain cabin rental and a bar, paid for personal vacations, and issued checks to herself totaling $1.4 million, all from the business’ bank account.
Additionally, Ferguson prepared false individual income tax returns for her employer that falsely underreported gross receipts and inflated mortgage interest deductions, causing an additional tax loss of over $250,000. The total tax loss resulting from Ferguson’s fraudulent conduct is approximately $374,101.
Sentencing is scheduled for Aug. 27, 2019. Ferguson faces a statutory maximum of five years in prison, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney Zuckerman and U.S. Attorney Martin commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Mara Strier and Alexander Effendi of the Tax Division and Assistant United States Attorney Frank Chut, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Rowan County Drug Dealer Sentenced to More Than 13 Years in Federal PrisonRead the Press Release
GREENSBORO, N.C. - A Salisbury resident was sentenced on May 9, 2019, in federal court in Greensboro, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
The Honorable N. Carlton Tilley, Jr., sentenced Donald Tiberio ARMSTRONG, 38, of Salisbury, North Carolina, to a 120 month term of imprisonment on charges of felon in possession of a firearm. At the time of the offense, ARMSTRONG was on supervised release, and was found to be in violation of the release conditions. In addition to 120 months imprisonment on the firearm charge, ARMSTRONG was sentenced to 37 months imprisonment for the supervised release violation, to be served consecutively, and ordered to serve three years of supervised release after completing his sentence. ARMSTRONG pleaded guilty in March 2018.
On August 29, 2017, deputies with the Rowan County Sheriff’s department arranged for an undercover officer (“UC”) to purchase an ounce of methamphetamine from ARMSTRONG. During the course of the transaction, officers monitoring the audio of the deal heard ARMSTRONG tell the UC to “put your hands up.” ARMSTRONG had taken the UC’s 9mm handgun from the holster on his hip, and pointed it at the UC’s face. Suspecting that the UC was being robbed, the officers moved in to apprehend the suspects. As officers surrounded the vehicle ARMSTRONG dropped the 9mm handgun in the back seat area of the vehicle and the UC was able to regain possession of the firearm. A search of the vehicle and surrounding area led to recovery of all of the departmental funds utilized to make the purchase of methamphetamine.
Prior to this arrest, ARMSTRONG had been convicted of trafficking cocaine by possession. ARMSTRONG also has a federal conviction for possession with intent to distribute cocaine.
The case was investigated by the Rowan County Sheriff’s Department and the Lenoir Police Department. The case was prosecuted by Assistant United States Attorney Terry M. Meinecke.
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Federal Indictments Charge 11 Durham Residents with Hobbs Robbery Conspiracy and Other OffensesRead the Press Release
GREENSBORO, N.C. – Eleven individuals from Durham were indicted May 3, 2019, on federal charges relating to a series of violent robberies, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina.
The defendants are charged in an indictment alleging that between October 18, 2015 and January 29, 2016, in Durham, Guilford, and Orange Counties, they conspired to commit Hobbs Act Robbery, that is, robbery by means of actual or threatened force, violence, and fear. The conspiracy allegedly targeted the personal residences of Middle-Eastern and Asian business owners to facilitate the theft of the business proceeds believed to be stored at their respective homes. Owners of the following businesses were targeted: Tobacco World in Durham, North Carolina; T-Nails Salon in Durham, North Carolina; Pink Nails in Hillsborough, North Carolina; Lakhani Jewelers in Durham, North Carolina; Biswas Tobacco in Durham, North Carolina; and China Fuji in Hillsborough, North Carolina. The defendants are:
• SAVIAN JACOBY TURRENTINE, age 26, of Durham
• DEION TYRELL LILES, age 23, of Durham
• ERVIN MONTEZ ALSTON, age 26, of Durham
• JERMAUCIYAE RYSUAN ABRAM, age 21, of Durham
• KEVIN JAMIE JENAVOUS MALONE, age 24, of Durham
• TERRELL LEE MCLAMB, age 26, of Durham
• HOWARD FREEMAN EARL, JR., age 24, of Durham
• MARKEY ANTONIO GOLDSTON, age 29, of Durham
• BARRY DION HOLT, age 26, of Durham
• JOSHUA QUINTON JONES, age 23, of Durham
• ANTHONY LATARIO JAMES, age 23, of Durham
In addition to the conspiracy charge, each defendant faces one or more individual charges of Hobbs Act Robbery and one or more individual charges of brandishing a firearm during a crime of violence. Each defendant convicted of a Hobbs Act robbery or conspiracy charge faces a maximum sentence of 20 years in prison, a fine of up to $250,000, or both, and not more than 3 years supervised release. Each defendant convicted of a brandishing a firearm charge faces a minimum sentence of 7 years in prison, a fine of up to $250,000, or both, and not more than 7 years supervised release.
“These organized criminals systematically terrorized and preyed upon minority business owners and their families,” said United States Attorney Martin. “The United States Attorney’s Office is committed to reducing violent crime and protecting the people of the Middle District by identifying and prosecuting violent offenders like these.”
"The defendants committed violent robberies across the community which instilled fear in the hearts of innocent people. These indictments send a clear message, we will work closely with our law enforcement partners to make sure those bringing violence to our streets are held accountable." said SAC Strong.
One of the conspirators, MARKEY ANTONIO GOLDSTON, is also charged in a separate two-count indictment with possession with intent to distribute cocaine base, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the drug charge, GOLDSTON faces a maximum sentence of 20 years in prison, a fine of up to $1,000,000, or both, and not less than 3 years supervised release. If convicted of the firearm charge, GOLDSTON faces a minimum sentence of 5 years in prison, a fine of up to $250,000, or both, and not more than 3 years supervised release.
The charges contained in the indictments are merely allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Federal Bureau of Investigation, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Durham County
Sheriff’s Office, the Durham Police Department, the Orange County Sheriff’s Office, the North Carolina Department of Public Safety, Special Operations & Intelligence Unit, and the North Carolina State Highway Patrol. The case is being prosecuted by Assistant U.S. Attorney Terry M. Meinecke of the United States Attorney’s Office.
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U.S. Attorney’s Office Hosts Roundtable to Combat Sexual Harassment in HousingRead the Press Release
Greensboro, NC – On April 30, the U.S. Attorney’s Office for the Middle District of North Carolina and the Justice Department’s Civil Rights Division hosted a roundtable for community organizations to discuss the problem of sexual harassment in housing, U.S. Attorney Matthew G.T. Martin announced. The event included state and local fair housing agencies, a representative from Legal Aid of North Carolina’s Fair Housing Project, and numerous community organizations.
“A tenant should be able to feel safe in her own home.” U.S. Attorney Martin said. “Landlords and others who abuse a position of power to commit sexual harassment violate a person’s right to fair housing. Attacking exploitation is a priority of our office, and we are dedicated to uncovering fair housing violations and aggressively pursuing those individuals who violate the law.”
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the federal Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.
In October 2017, the Justice Department’s Civil Rights Division announced an initiative to combat sexual harassment in housing. In April 2018, the Justice Department announced the nationwide rollout of that initiative, including three major components: a new joint Task Force with the Department of Housing and Urban Development to combat sexual harassment in housing, an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, and a public awareness campaign, including the launch of a national Public Service Announcement.
The Justice Department’s initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of the Justice Department’s enforcement efforts – both among survivors and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help survivors quickly and easily connect with federal resources.
Our office is working closely with the Civil Rights Division to spread the word here in the Middle District of North Carolina about options to help victims experiencing sexual harassment or who experienced sexual harassment in housing in the past. Roundtable discussions like the one that U.S. Attorney Martin hosted today are one way to increase awareness and build strong partnerships in the community to combat this problem together. Assistant U.S. Attorney Cassie Crawford is leading the Sexual Harassment in Housing Initiative in the district.
Our community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters, and transitional housing providers can identify the misconduct and recommend that victims report sexual harassment to the Civil Rights Division, using the contact information below. Local police departments or legal aid offices may be able to help victims, if the behavior is a crime or if there is an imminent eviction. Legal Aid of North Carolina’s Fair Housing Project Hotline is 1-855-797-3247.
The Justice Department brings cases each year involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures. Since launching the initiative, the Justice Department has filed nine lawsuits alleging a pattern or practice of sexual harassment in housing. The Justice Department has filed or settled 14 sexual harassment cases since January 2017, and has recovered over $2.2 million for victims of sexual harassment in housing.
Many instances of sexual harassment in housing continue to go unreported. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities.
The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Division by calling 1-844-380-6178 or emailing [email protected]. Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the U.S. Attorney’s Office at [email protected].
More information about the Justice Department’s Civil Rights Division and the laws it enforces can be found at http://www.justice.gov/crt.
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Laurinburg Man Sentenced to 96 Months in Prison for Firearms and Drug ChargesRead the Press Release
GREENSBORO, N.C. – A Laurinburg man who sold firearms and cocaine was sentenced to federal prison Tuesday, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
TONY DEVONTA WHITE EVERETTE, 26, pleaded guilty on December 28, 2018, to two counts of possession of a firearm by a previously convicted felon, two counts of distribution of cocaine base (“crack”), one count of distribution of cocaine, and one count of possessing a firearm during and in relation to a drug trafficking crime. On April 29, 2018, EVERETTE was sentenced by United States District Judge William L. Osteen Jr. to 96 months of imprisonment, followed by 5 years of supervised release.
On three occasions beginning on April 18, 2018, and ending onMay 18, 2018, EVERETTE sold firearms, crack cocaine, and cocaine powder to a confidential informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives. EVERETTE sold two handguns, approximately 74 grams of crack cocaine, and approximately 27 grams of cocaine hydrochloride (powder) during that period, with all of those sales occurring in Scotland County, North Carolina. EVERETTE had previously been convicted of possession of a firearm by a felon in state court in Scotland County.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Laurinburg Police Department, and prosecuted by Assistant United States Attorney Anand P. Ramaswamy for the Middle District of North Carolina.
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Raeford Man Sentenced to 60 Months in Prison for Firearms ChargeRead the Press Release
GREENSBORO, N.C. – A Raeford man who sold firearms while on felony state probation was sentenced to federal prison today, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
DELTON OMEZ MONROE, age 34, pleaded guilty on October 11, 2018, to one count of possession of firearms by a previously convicted felon. MONROE was sentenced by United States District Judge Loretta C. Biggs to 60 months of imprisonment, followed by 3 years of supervised release. His father, ROBERT JUNIOR MONROE was convicted on May 14, 2018, of possession of a firearm by convicted felon, and sentenced on August 31, 2018, to 18 months in prison by United States District Court Judge William L. Osteen Jr.
After investigators were told that stolen firearms were being sold from a Raeford home, they began using a confidential informant to buy firearms from that location. On February 12, 2018, ROBERT JUNIOR MONROE, then a convicted felon, sold firearms to the confidential informant, saying he was selling those guns for his son who was on probation but was not present because he was doing a three-day term in jail. Investigators determined that ROBERT JUNIOR MONROE was referring to DELTON OMEZ MONROE, who was in fact serving a three-day jail term on February 12, 2018, based on prior state felony narcotics convictions.
When the confidential informant returned to the house on February 16, 2018, he paid DELTON OMEZ MONROE $910 in exchange for a Smith and Wesson .357 revolver and a Spike’s Tactical .223 rifle. On February 23, 2018, the confidential informant again went to DELTON OMEZ MONROE’S residence and paid him $1,240 in exchange for a RomArm/Cugir 7.62x39mm rifle, a Rock Island Armory .45-caliber pistol, and a Smith and Wesson .38 special revolver.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Hoke County Sheriff’s Office, and the Raeford Police Department, and prosecuted by Assistant United States Attorney Anand P. Ramaswamy for the Middle District of North Carolina.
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Rowan County Man Sentenced to Nineteen Years in Federal PrisonRead the Press Release
GREENSBORO, N.C. - A Salisbury resident was sentenced on April 17, 2019, in federal court in Winston-Salem, announced United States Attorney Matthew G.T. Martin of the Middle District of North Carolina.
The Honorable Thomas D. Schroder sentenced Nekhent Supreme ALI, 37, of Salisbury, North Carolina, to a 235 month term of imprisonment on charges of distributing cocaine base (crack). In addition to 235 months imprisonment, ALI was ordered to serve three years of supervised release after completing his sentence. ALI pleaded guilty in November 2018.
During the spring of 2018 a confidential informant told officers with the Rowan County Sheriff’s Office that ALI was selling cocaine base (crack), and indicated that they could purchase quantities of the drug from ALI. Law enforcement officers utilized the CI to make four controlled purchases of cocaine base (crack) from ALI. The quantity of cocaine base purchased varied from as low as 14.8 grams to as high as 29 grams. The total quantity of cocaine base (crack) purchased from ALI as a result of the four transactions was 69.8 grams.
On April 25, 2018, during a consent search of a residence where ALI was known to reside, officers located more than $1,000 of the United States currency that was utilized to make the controlled purchases of cocaine base from ALI.
Prior to this arrest, ALI had been convicted of multiple counts of felony possession of cocaine, felony possession with intent to sell and deliver cocaine, and felony possession with intent to manufacture, sell, and deliver cocaine.
The case was investigated by the Department of Homeland Security Investigations, the Rowan County Sheriff’s Department Crime Reduction Unit, and the Salisbury Police Department Narcotics Unit. The case was prosecuted by Assistant United States Attorney Terry M. Meinecke.
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Former Pfeiffer University CFO Pleads Guilty to FraudRead the Press Release
GREENSBORO, N.C. - Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that JEFFREY BYRON PLYLER, of Albemarle, North Carolina, pleaded guilty in federal court in Greensboro to a felony charge of making a materially false, fictitious, and fraudulent statement.
PLYLER, age 57, pleaded guilty before United States District Judge William L. Osteen, Jr. in connection with a forged signature on an Internal Revenue Service Form W-9. PLYLER forged the signature in order to receive payment from Pfeiffer University on a fraudulent invoice.
“Mr. Plyler held a position of trust as CFO of Pfeiffer University. Instead of fulfilling that trust, he exploited it for his own gain. Let this be a lesson that federal authorities will address fraud in this district,” said U.S. Attorney Martin. “I commend the FBI, U.S. Postal Investigation Service, and AUSA McFadden for their excellent work.”
PLYLER served as Pfeiffer University’s Vice-President for Financial Services and Chief Financial Officer. During a review of insurance invoices, Pfeiffer’s Controller of Financial Operations noted that the university was paying a significant amount of money for insurance commission/agent fees and an audit ensued. The audit uncovered several irregular invoices allegedly related to insurance commission/agent fees and consulting work completed by Circle One, Senn Dunn, and Leggett. Investigation revealed that PLYLER was listed as the registered agent for Circle One and Leggett in documents filed with the North Carolina Secretary of State, and engaged in business under the assumed business name of Senn Dunn according to an Assumed Business Name Certificate filed in Stanly County. Senn Dunn did not authorize Plyler to do so. Pfeiffer University paid a total of $527,350.00 on these invoices to accounts that PLYLER controlled.
The defendant faces a maximum penalty of sixty months confinement. The plea agreement requires PLYLER to make restitution in the amount of $527,350.00. Sentencing will occur in Greensboro on August 19, 2019 at 2 p.m.
The case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service. The case was prosecuted by Assistant United States Attorney JoAnna G. McFadden.
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Duke University Agrees to Pay U.S. $112.5 Million to Settle False Claims Act Allegations Related to Scientific Research MisconductRead the Press Release
Duke University has agreed to pay the government $112.5 million to resolve allegations that it violated the False Claims Act by submitting applications and progress reports that contained falsified research on federal grants to the National Institutes of Health (NIH) and to the Environmental Protection Agency (EPA), the Justice Department announced today.
“The resources utilized by NIH and EPA to fund important research and clinical programs across the nation are limited,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Today’s settlement demonstrates that the Department of Justice will pursue grantees that knowingly falsify research and undermine the integrity of federal funding decisions.”
“Taxpayers expect and deserve that federal grant dollars will be used efficiently and honestly. Individuals and institutions that receive research funding from the federal government must be scrupulous in conducting research for the common good and rigorous in rooting out fraud,” said Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina. “May this serve as a lesson that the use of false or fabricated data in grant applications or reports is completely unacceptable.”
Duke is a private university located in Durham, North Carolina. Duke receives millions of dollars in funding from NIH and the EPA for hundreds of grants each year. The settlement resolves allegations that between 2006 and 2018, Duke knowingly submitted and caused to be submitted claims to the NIH and to the EPA that contained falsified or fabricated data or statements in thirty (30) grants, causing the NIH and EPA to pay out grants funds they otherwise would not have. Specifically, the United States contends that the results of certain research related to mice conducted by a Duke research technician in its Airway Physiology Laboratory, as well as statements based on those research results, were falsified and/or fabricated.
“Duke knowingly, the government contended, falsified data to claim millions of grant dollars from the National Institutes of Health,” said Maureen R. Dixon, Special Agent in Charge, Office of Inspector General for the U.S. Department of Health and Human Services. “OIG and our law enforcement partners will continue to hold such grantees fully accountable regardless of the length or complexity of the investigations.”
“This settlement sends a strong message that fraud and dishonesty will not be tolerated in the research funding process,” said EPA Acting Region 4 Administrator Mary S. Walker. “We will continue to take appropriate legal measures to ensure a fiscally sound system that protects grant funds.”
The allegations were originally brought in a lawsuit filed by Joseph Thomas, a former Duke employee, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government and share in any recovery. The Act permits the government to intervene in and take over the whistleblower’s suit, or, as in this case, for the whistleblower to pursue the action on the government’s behalf. Mr. Thomas will receive $33,750,000 from the settlement.
The investigation and settlement in this matter were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the Middle District of North Carolina and the Western District of Virginia, the Department of Health and Human Services Office of Inspector General, and the Environmental Protection Agency Office of Inspector General.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Thomas v. Duke University, et al., Case No. 1:17-cv-276 (M.D.N.C.).
Duke University Agrees to Pay U.S. $112.5 Million to Settle False Claims Act Allegations Related to Scientific Research MisconductRead the Press Release
WASHINGTON – Duke University has agreed to pay the government $112.5 million to resolve allegations that it violated the False Claims Act by submitting applications and progress reports that contained falsified research on federal grants to the National Institutes of Health (NIH) and to the Environmental Protection Agency (EPA), the Justice Department announced today.
“The resources utilized by NIH and EPA to fund important research and clinical programs across the nation are limited,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Today’s settlement demonstrates that the Department of Justice will pursue grantees that knowingly falsify research and undermine the integrity of federal funding decisions.”
“Taxpayers expect and deserve that federal grant dollars will be used efficiently and honestly. Individuals and institutions that receive research funding from the federal government must be scrupulous in conducting research for the common good and rigorous in rooting out fraud,” said Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina. “May this serve as a lesson that the use of false or fabricated data in grant applications or reports is completely unacceptable.”
Duke is a private university located in Durham, North Carolina. Duke receives millions of dollars in funding from NIH and the EPA for hundreds of grants each year. The settlement resolves allegations that between 2006 and 2018, Duke knowingly submitted and caused to be submitted claims to the NIH and to the EPA that contained falsified or fabricated data or statements in 30 grants, causing the NIH and EPA to pay out grants funds they otherwise would not have. Specifically, the United States contends that the results of certain research related to mice conducted by a Duke research technician in its Airway Physiology Laboratory, as well as statements based on those research results, were falsified and/or fabricated.
“Duke knowingly, the government contended, falsified data to claim millions of grant dollars from the National Institutes of Health,” said Maureen R. Dixon, Special Agent in Charge, Office of Inspector General for the U.S. Department of Health and Human Services. “OIG and our law enforcement partners will continue to hold such grantees fully accountable regardless of the length or complexity of the investigations.”
“This settlement sends a strong message that fraud and dishonesty will not be tolerated in the research funding process,” said EPA Acting Region 4 Administrator Mary S. Walker. “We will continue to take appropriate legal measures to ensure a fiscally sound system that protects grant funds.”
The allegations were originally brought in a lawsuit filed by Joseph Thomas, a former Duke employee, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government and share in any recovery. The Act permits the government to intervene in and take over the whistleblower’s suit, or, as in this case, for the whistleblower to pursue the action on the government’s behalf. Mr. Thomas will receive $33,750,000 from the settlement.
The investigation and settlement in this matter were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices for the Middle District of North Carolina and the Western District of Virginia, the Department of Health and Human Services Office of Inspector General, and the Environmental Protection Agency Office of Inspector General.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Thomas v. Duke University, et al., Case No. 1:17-cv-276 (M.D.N.C.).
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Rowan County Man Sentenced to 156 Months in Federal Prison for Selling HeroinRead the Press Release
GREENSBORO, N.C. – A Rowan County man was sentenced to federal prison on Wednesday, March 20, 2019, for distributing heroin, announced Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina.
CURTIS CARL COWAN, age 53, of Salisbury, North Carolina, pleaded guilty on December 3, 2018, to one count of distribution of heroin. COWAN was sentenced by United States District Judge William L. Osteen, Jr. to 156 months of imprisonment, followed by 5 years of supervised release. He was a “career offender” under federal law, based on his prior convictions for second degree kidnapping, attempted second degree kidnapping, and extortion.
On both May 15, 2017 and April 12, 2017, COWAN sold approximately 1 gram of heroin to a confidential informant working with the Rowan County Sheriff’s Office. Both transactions occurred in the public parking lots of retail businesses located in Salisbury, North Carolina.
This case was investigated by the Rowan County Sheriff’s Office and prosecuted by Assistant United States Attorney Terry M. Meinecke.
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