Western District of North Carolina
Press releases recorded for this federal judicial district.
Hickory Man with Extensive Inventory of Child Pornography Is Sentenced to 11 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Chad Joseph Caesar, 39, of Hickory, N.C., was sentenced to 132 months in prison followed by a lifetime of supervised release for receipt of child pornography.
Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Reed Baer of the Hickory Police Department (HPD) join U.S. Attorney King in making today’s announcement.
According to court documents and the sentencing hearing, in February 2023, HPD was notified that Caesar’s computer had been flagged by his employer for a security violation. The HPD initiated an investigation, which led to the execution of a search warrant at Caesar’s residence. Law enforcement seized Caesar’s electronic devices, which were analyzed forensically. The analysis revealed that Caesar’s devices contained an extensive inventory of child pornography – more than 50,000 images and videos – depicting the sexual abuse of children, including infants and toddlers, and files that contained sadistic and masochistic conduct and bestiality. Also, court records show that Caesar’s collection of child pornography included images and videos of over 250 victims who have previously been identified by name. Many of those identified victims submitted victim impact statements for the Court’s consideration at sentencing. Judge Bell, commenting on those victim impact statements at sentencing, noted that “When you read their letters they are forever abused … They live in fear for the rest of their lives.”
On December 6, 2023, Caesar pleaded guilty to receipt of child pornography.
In announcing today’s sentence, U.S. District Judge Kenneth D. Bell said that the victims “live in fear for the rest of their lives,” and “When you read the letters they are forever abused.”
Caesar will remain in the custody of the U.S. Marshals Service pending transportation to a designated federal Bureau of Prisons’ facility.
The HSI and the Hickory Police Department investigated the case.
Assistant U.S. Attorney Daniel Cervantes of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. 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.
Charlotte Man Is Sentenced to More Than Six Years for Possession of A Firearm by A FelonRead the Press Release
CHARLOTTE, N.C. – Damarious Sims, 24, of Charlotte, was sentenced today to 76 months in prison followed by three years of supervised release on each of two counts for possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to documents filed in the case and court proceedings, on August 13, 2022, CMPD officers responded to a call for assistance at East 4th Street and South Brevard Street for gunshots fired in the area. A second call for service came regarding a shooting incident near the Omni Hotel in uptown, where a victim, later identified as Sims, had been shot and sustained an injury. The officers located Sims on the ground in front of the hotel with a gunshot wound in his lower left calf. Officers rendered Sims medical assistance and he was transported to the hospital. During the ensuing investigation, law enforcement determined that Sims had been approached by two males looking to buy marijuana. The deal was a ruse and a female, later identified as Princess Houghton, and her brother planned to assault Sims during the deal. Sims drew a pistol with an extended magazine when he detected the threat. Houghton drew her own pistol with an extended magazine and shot Sims before fleeing the scene. During the investigation, CMPD recovered the guns used by Sims and Houghton. They were each arrested on local charges.
While out on bond from his local charges, on November 30, 2022, Sims got into an altercation with a passerby near the Omni Hotel in uptown. Sims had another loaded pistol and threatened to use it on the passerby. CMPD responded and confronted Sims who fled on foot. After a brief chase, CMPD took Sims into custody and recovered the loaded firearm.
On April 26, 2023, Sims pleaded guilty to two counts of possession of a firearm by a convicted felon. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. On Tuesday, June 25, 2024, Houghton was sentenced to eight years in prison.
In making today’s announcement, U.S. Attorney King thanked the ATF and CMPD for their investigation of the case.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Charlotte Man Is Sentenced to 42 Years in Prison for Sexual Exploitation of A MinorRead the Press Release
CHARLOTTE, N.C. – Phillip Christopher Weise, 36, of Charlotte, was sentenced to 42 years in federal prison followed by a lifetime of supervised release for sexual exploitation of minors, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Weise was also ordered to register as a sex offender upon completion of his prison term.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, in December 2020, law enforcement received a cybertip that an individual, later identified as Weise, was using social media and messaging platforms to upload child pornography. In March 2021, law enforcement executed a search warrant at Weise’s residence and seized multiple electronic devices including Weise’s cell phone. A review of the devices revealed that Weise, posing as a minor, met minors on social media platforms such as Kik, Snapchat, Discord, and JusTalk. Weise befriended the minors and sent them child pornography. Weise also persuaded the minors to send him sexually explicit images and videos, and he sometimes directed them to involve their younger siblings and animals in the videos. On occasion, Weise extorted minors to continue to send him sexually explicit videos by threatening to post their sexually explicit videos online if the minors did not comply with his request for additional videos. Court records show that Weise targeted minors between the ages of four and 12, and he shared the sexually explicit videos with other offenders. Law enforcement officials identified more than six of Weise’s victims.
When sentencing Weise to the statutory maximum term of 42 years, U.S. District Judge Frank D. Whitney noted that Weise’s crimes will have a life-long effect on his victims.
On March 9, 2023, Weise pleaded guilty to production of child pornography, extortion, and transfer of obscene matter to minors. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King commended the FBI and CMPD for their work in the investigation.
Assistant U.S. Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte and Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. 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.
Repeat Gastonia Drug Trafficker Is Sentenced to 15 Years for Drug DistributionRead the Press Release
CHARLOTTE, N.C. –Kenter O’Neal Ruff, 45, of Gastonia, N.C., was sentenced to 180 months in prison followed by six years of supervised release for drug distribution, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Trent Conard of the Gastonia Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents, evidence presented at Ruff’s trial, and witness testimony, over the course of an investigation into drug trafficking in Gaston County law enforcement identified Ruff as a local drug distributor. Trial evidence established that, on multiple occasions between October 2020 and April 2021, Ruff sold cocaine base to an individual cooperating with law enforcement. At the time, Ruff was on supervised release stemming from a prior federal drug conviction and had additional state convictions related to drug trafficking and drug possession.
On January 5, 2023, a federal jury convicted Ruff of four counts of distribution of cocaine base. Ruff will remain in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
U.S. Attorney King thanked the FBI and the Gastonia Police Department for their investigation of the case.
Assistant United States Attorneys Thomas Kent and Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte and Special Assistant United States Attorney (SAUSA) William Wiseman prosecuted the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 26th Prosecutorial District and the United States Attorney’s Office.
Multi-Convicted Felon Is Sentenced to Eight Years in Prison for Illegal Firearms PossessionRead the Press Release
CHARLOTTE, N.C. – Princess Houghton, 34, of Salisbury, N.C., was sentenced today to 96 months in prison followed by three years of supervised release for possession of a firearm by a convicted felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to documents filed in the case and court proceedings, on August 13, 2022, at approximately 3:52 p.m., CMPD Officers were dispatched to East 4th Street and South Brevard Street in reference to a service call for shots fired in the area, which is a short distance from the Transit Center in Uptown Charlotte. While enroute, another call for service came in for the Omni Hotel at 132 East Trade Street, for a victim that had been shot and sustained a gunshot wound. The officers located the victim and began rendering medical assistance. The victim was then transported to the hospital.
According to court documents, law enforcement reviewed surveillance footage from cameras in the area and were able to identify Houghton’s vehicle as it fled the area as well as the address where the vehicle was registered. On August 23, 2022, law enforcement executed a search warrant at Houghton’s residence. Law enforcement searched a safe inside the residence, where they found Houghton’s semi-automatic pistol, loaded with 18 rounds of ammunition plus one additional round in the chamber. Law enforcement also recovered a separate extended magazine loaded with additional ammunition. Court records show that Houghton had used the illegal firearm to shoot the victim.
On October 25, 2023, Houghton pleaded guilty to possession of a firearm by a convicted felon. Houghton has multiple prior convictions, to include assault with a deadly weapon with intent to kill, accessory after the fact – robbery with a dangerous weapon, and charges related to breaking and entering. As a result of the criminal conviction, she is prohibited from possessing a firearm or ammunition.
Houghton is in federal custody. She will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the ATF and CMPD for their investigation of the case.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Monroe Woman Is Sentenced to Prison for Embezzling Nearly $2.3 Million from EmployerRead the Press Release
CHARLOTTE, N.C. – Kristy Lawrence, 45, of Monroe, N.C., was sentenced today to 36 months in prison followed by three years of supervised release for embezzling nearly $2.3 million from her employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney also ordered Lawrence to pay $$2,224,086 in restitution.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Sheriff Eddie Cathey of the Union County Sheriff’s Office, join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, from 2016 to April 2022, Lawrence was employed by a small family business located in Monroe. Over the course of her employment, Lawrence worked in a purchasing and accounting function for the business and handled the company’s books and records. Court records show that Lawrence misused her position to embezzle millions of dollars from the company. Lawrence carried out the scheme by making multiple unauthorized electronic transfers from the company’s bank account to pay outstanding balances on her credit card and to make other payments for her personal benefit. Lawrence covered up the fraud by using her position and access to falsify documents and make fraudulent accounting entries in the company’s books and records. Lawrence’s embezzlement scheme was uncovered after the defendant was on extended leave and another employee took over her responsibilities.
In reaching its sentence, the Court highlighted, among other things, the long-running nature of the scheme and the significant economic and emotional harm that Lawrence caused to her employer and her coworkers.
On December 19, 2023, Lawrence pleaded guilty to wire fraud. She remains free on bond and will be ordered to report to the federal Bureau of Prisons to begin serving her sentence upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the FBI in Charlotte and the Union County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte prosecuted the case.
U.S. Attorney's Office Summer Law Camp Introduces High School Students to A Career in the LawRead the Press Release
CHARLOTTE, N.C. – This week, 24 high school students are participating in the U.S. Attorney’s Office Summer Law Camp, a program that introduces students to the American Criminal Justice System. The program is designed to help students gain a greater understanding of a career in the law and experience the work of practicing litigators. The camp will conclude with students engaging in mock trials that will be held at the federal courthouse in Charlotte, before by U.S. Magistrate Judge David C. Keesler.
“Our Summer Law Camp offers young people an excellent introduction to the criminal justice system and the wide range of career opportunities in the legal field,” said U.S. Attorney Dena J. King. “The mock trials provide students with a hands-on understanding of legal proceedings and trial advocacy, allowing them to experience the role of a lawyer in an engaging, fun, and interactive environment.”
The U.S. Attorney’s Office Summer Law Camp is free of charge, and it is available to high school students interested in learning more about the legal profession. The program is taught by career federal prosecutors and helps students explore the justice system, learn about the Federal Rules of Evidence, gain basic advocacy skills, and encourage students to think as lawyers. In addition, participating students receive instruction on evidence collection and trial preparation and learn from guest speakers representing law enforcement agencies and the legal defense bar. During the mock trials, students actively participate in the court proceedings, with assigned roles as prosecutors, defense attorneys, and witnesses, tasked with delivering opening statements and closing arguments, providing testimony, and conducting cross examinations.
“Our law camp gives students from all backgrounds the chance to explore the legal profession, understand the legal process, and learn about career options in the field,” said U.S. Attorney King. “However, the camp goes beyond civics education and career preparation. The ultimate goal is to help young people recognize the power and responsibility they hold as citizens, and the important role they play in ensuring the criminal justice system is a place where they can make a meaningful impact for themselves, their community, and justice” King added.
Additional information about the U.S. Attorney’s Office Summer Law Camp can be found here.
Charlotte Man Is Sentenced to Eight Years in Prison for Possession of A Firearm by A FelonRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that Bryan Dequan Ledbetter, 48, of Charlotte, was sentenced on Monday to 96 months in prison for possession of a firearm by a convicted felon.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to documents filed in the case and court proceedings, on September 25, 2022, in the early morning hours, Ledbetter used a bedroom window to enter the home of a female victim who was known to Ledbetter. Upon hearing Ledbetter attempting to enter her home, the victim called 911. While she was on the phone with the dispatcher, the victim managed to escape and run toward the neighbor’s home. Ledbetter caught up with the victim on the neighbor’s porch, placed his hands around the victim’s neck and began to squeeze her neck. Ledbetter then dragged the victim on the neighbor’s yard while keeping his hands around her neck. Court records show that, while Ledbetter held the victim down, he pulled out a firearm and fired into the air. Ledbetter then dragged the victim in the nearby bushes where he placed the muzzle of the firearm against the victim’s head and under her neck. When officers arrived at the scene, they ordered Ledbetter to surrender. At first, Ledbetter refused and continued to press his firearm against the victim’s head. Ledbetter eventually threw down his firearm and he was arrested on scene.
On March 14, 2023, Ledbetter pleaded guilty to possession of a firearm by a convicted felon. Ledbetter has prior state convictions that include assault on a female and felony assault by strangulation, and he is prohibited from possessing a firearm or ammunition.
Ledbetter is in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the ATF and CMPD for their investigation of the case.
Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney's Office Highlights Efforts to Enhance Community Safety During the Summer Months Through Prosecutions, Partnerships and PreventionRead the Press Release
CHARLOTTE, N.C. – Today, U.S. Attorney Dena J. King announced the U.S. Attorney’s Office’s efforts to enhance safety across communities in Western North Carolina, especially during the summer months when violent crime historically increases. These efforts include federal prosecutions, collaborations with law enforcement and local communities, and proactive prevention programs aimed at strengthening public safety.
“We are closely monitoring a potential increase in criminal activity during the summer months,” said U.S. Attorney King. “My Office is fully committed to protecting our neighborhoods by identifying and prosecuting violent offenders, armed drug traffickers, and felons illegally possessing firearms, and leveraging the new criminal provisions of the Bipartisan Safer Communities Act to pursue charges against straw gun purchasers and gun traffickers. Our dedication to community safety extends far beyond the courtroom. We are actively collaborating with our federal, state, local, and Tribal law enforcement partners to identify cases for federal prosecution, provide essential training, and utilize technology to combat violent crime. Furthermore, we are enhancing community involvement by partnering with organizations, youth groups, law enforcement, and other stakeholders to develop and support prevention programs that address the causes of violence.”
Prosecution Successes: Our prosecutions aim to enhance community safety, deliver justice for crime victims, and hold accountable those individuals responsible for perpetuating violence within our communities. The cases below were indicted this week and underscore our commitment to public safety:
U.S. v. Jose Maria Quijada-Ortega – On Tuesday, a federal grand jury in Charlotte returned a criminal indictment, charging Jose Quijada-Ortega, 26, of Charlotte, with possession of a machinegun. According to allegations in the indictment, on October 6, 2023, Quijada-Ortega knowingly and willfully possessed a machinegun, that being a Glock, Model 23, .40 caliber pistol, with an affixed machinegun conversion device, commonly referred as a “Glock Switch.”
U.S. v. Allison et al. – The grand jury in Charlotte has also returned a criminal indictment against Desmoria Deoria Allison, 24, Mustafa Dajron Howie, 30, and Kinyona Jenae McClain, 22, all of Shelby, North Carolina, for federal firearms violations related to straw purchasing and illegal possession of firearms. McClain is charged with two counts of straw purchase of a firearm and making a false statement during the purchase of a firearm. Allison is charged with two counts of making a false statement during the purchase of a firearm, and Howie is charged with two counts of possession of a firearm by a felon. The indictment alleges that, in October 2023, and again in February 2024, McClain straw purchased two firearms, on behalf of, or at the request or demand of Howie, knowing that Howie had previously been convicted of a crime. The indictment also alleges that, in March 2023, Allison made false and fictitious written statements in connection with the acquisition of two firearms from two licensed firearms dealers. The indictment further alleges that Howie illegally possessed the firearms that had been straw purchased by McClain and Allison.
U.S. v. Jadarius Connell Potts – Jadarius Connell Potts, 31, of Charlotte, was indicted with one count of dealing in firearms without a license and three counts of possession of a firearm by a felon. As alleged in the indictment, between August and September 2023, Potts engaged in the business of dealing in firearms without a license. The indictment alleges that Potts illegally possessed three firearms, an AM-15 rifle and two pistols, knowing that he had previously been convicted of at least one crime punishable by imprisonment exceeding one year.
U.S. v. Wade Bolton – A federal grand jury in Charlotte indicted Wade Bolton, 33, of Charlotte, of possession of a firearm by a prohibited person, possession with intent to distribute fentanyl and methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. According to allegations in the indictment, in December 2023, Bolton allegedly possessed three firearms, knowing that he had previously been convicted of at least one crime punishable by imprisonment exceeding one year. It is further alleged that Bolton knowingly possessed with the intent to distribute fentanyl and methamphetamine and possessed one or more firearms in furtherance of the drug trafficking activities.
U.S. v. Melvin Baylor – Melvin Bolton, 38, of Charlotte, was indicted for possession of a firearm by a convicted felon. As alleged in the indictment, in December 2023, Baylor illegally possessed two firearms, that being a Smith and Wesson M&P 15 Rifle, and an AK-47, along with all the associated magazines and ammunition, knowing that he had previously been convicted of at least one crime punishable by imprisonment exceeding one year.
In addition to this week’s indictments, the U.S. Attorney’s Office announced the sentencing outcomes for additional defendants convicted in separate cases involving firearms offenses, drug trafficking, and armed robbery. The defendants received prison terms ranging from over 3 years to more than 34 years. Press releases with additional information on these cases can be found here.
Trainings and Technology-Driven Strategies: As part of the Project Safe Neighborhoods (PSN) initiative, the U.S. Attorney’s Office partners with our federal, state, local and Tribal law enforcement, prosecutors, community leaders, and other stakeholders to identify the most pressing crime problems in a community and develop comprehensive solutions to address them. An important component of PSN is providing training to law enforcement that can enhance investigations for federal prosecution.
Another important component of PSN is the use of technology and data-driven strategies to target crime hotspots and identify repeat offenders. For example, the Crime Gun Intelligence Center (CGIC) in Charlotte coordinates comprehensive tracing and ballistics analysis. The CGIC focuses exclusively on investigating and preventing gun violence in local communities, using eTrace systems and the National Integrated Ballistic Information Network, or NIBIN. NIBIN is an incredibly powerful tool used in investigations that involve firearms. Part of the U.S. Attorney’s Office’s role is to work with our federal, state, local, and Tribal partners to facilitate the submission of ballistics evidence to the NIBIN system on a timely basis that can assist with turning evidence into concrete leads.
Furthermore, U.S. Attorney King and Assistant U.S. Attorneys from the Charlotte and Asheville Divisions continue to foster relationships by regularly meeting with local law enforcement and state and Tribal prosecutors to determine training needs and identify cases for federal prosecution. Also, as part of the U.S. Attorney’s Office’s violent crime reduction strategy, members of the office meet with community leaders to discuss community concerns and develop collaborative strategies with stakeholders to improve public safety.
Victim Support and Restorative Justice: Our commitment to supporting victims of violence remains one of our core missions. The U.S. Attorney’s Office’s Victim Witness Unit provides comprehensive victim support services and advocates for justice at every phase of the litigation process, ensuring that victims are afforded all the rights and protections they are entitled to under the law, and stay informed as their case progresses through the court system. In addition, members of the Victim Witness Unit meet regularly with community organizations, service providers, victim advocates, allied professionals, and law enforcement counterparts to ensure that everyone in the community knows and understands where and how crime victims and survivors can access the support and resources they need to promote healing and recovery.
Prevention Initiatives and Long-Term Commitment: In collaboration with law enforcement agencies, community organizations, nonprofit entities, and school districts, we have launched and strengthened several violence prevention initiatives. Just last week, the U.S. Attorney’s Office, in partnership with the Asheville Police Department (APD), hosted an outreach event at My Daddy Taught Me That (MDTMT), a youth development program in Asheville, designed to support young people through advocacy, education, and mentoring. During the event, U.S. Attorney King introduced newly appointed APD Police Chief Michael Lamb to a group of young males and he spoke about his background, shared his life experiences, and talked about APD’s community engagement goals under his leadership.
U.S. Attorney King continues to actively engage with local school districts in the Western District and the Qualla Boundary, home to the Eastern Band of Cherokee Indians, to hold listening sessions and have impactful conversations with students on the causes and consequences of violence. Through these sessions, U.S. Attorney King educates students on how to effectively handle conflict resolution and emphasizes the importance of making positive choices. By fostering open dialogue, soliciting the students’ feedback, and providing insights into the legal consequences of violence, U.S. Attorney King aims to empower students with knowledge that can help prevent future incidents. Her proactive approach not only supports community safety but also encourages young people to become informed, responsible citizens committed to building safer neighborhoods for everyone.
In July, U.S. Attorney King will attend the National Recognition Week for the winners of the “Do the Write Thing” essay challenge in Washington, D.C. DtWT is organized by the National Campaign to Stop Violence and seeks to encourage middle school students to express the impact of violence in their lives through writing, and to empower students to become catalysts for positive change by sharing their ideas on ways to reduce youth violence. U.S. Attorney King serves as Chair of the DtWT Committee in Asheville. In this role, U.S. Attorney King accompanies National Student Ambassadors selected from Charlotte and Asheville schools to Washington, D.C., where students participate in planned events and engage in discussions on important topics such as the problem of youth violence.
Beyond the immediate summer months, federal prosecutors are dedicated to sustaining these efforts throughout the year, with the goal of putting in place lasting improvements in public safety and community well-being.
“We encourage everyone in our community to join us in these efforts,” said U.S. Attorney King. “Together, we can build safer, more resilient neighborhoods where every resident can thrive.”
U.S. Attorney King thanks all the law enforcement agencies involved in the aforementioned prosecutions and commends Assistant U.S. Attorneys Shavonn Bennette (U.S. v. Allison et al.), Brandon Boykin (U.S. v. Potts, U.S. v. Bolton, and U.S. v. Baylor), and Kenneth Smith (U.S. v. Quijada-Ortega) for handling the prosecution of these cases.
The defendants named in the indictments are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The U.S. v. Allison et al. case is being prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
For more information on our initiatives visit the U.S. Attorney’s Office’s website.
U.S. Attorney's Office Conducts Law Enforcement Training on Overdose Investigations and ProsecutionsRead the Press Release
CHARLOTTE, N.C. - Today, the U.S. Attorney’s Office conducted a training in Charlotte for law enforcement agencies, on the investigation and prosecution of fatal and near-fatal overdose cases, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The training is part of a broader effort by federal prosecutors to combat the opioid epidemic and ensure justice for victims and their families.
“Tackling the opioid crisis requires a comprehensive approach,” said U.S. Attorney King. “Today’s training provides law enforcement with the tools and knowledge they need to thoroughly investigate overdose cases, so those responsible for distributing lethal substances are held accountable in a court of law. But today’s training goes beyond enforcement. It’s also about saving lives and supporting our communities.”
Over the past decade, overdose deaths caused by powerful synthetic opioids like fentanyl have devastated communities nationwide, including in Western North Carolina. To build on recent courtroom successes and enhance the investigation and prosecution of fatal and near-fatal overdose cases, the U.S. Attorney’s Office developed today’s training, which is the first of its kind for the district. During the training, members of the U.S. Attorney’s Office’s Drug and Violent Crime Unit gave participants a comprehensive review of the legal tools that can be utilized to investigate and prosecute overdose cases, including applicable federal and state statutes, investigative avenues and resources, the challenges and complexities associated with the investigation of these cases, and tried-and-true methods to enhance investigative methods to ensure a successful outcome.
The audience consisted of investigators representing 17 federal, state, local, and Tribal law enforcement agencies throughout the Western District. A portion of the training analyzed the successful prosecution of recent fatal and near-fatal overdose cases prosecuted by federal prosecutors in Charlotte and Asheville. For example, in January 2024, two men were sentenced to prison for distributing fentanyl that resulted in a victim’s death. In April 2024, a woman was charged with selling fentanyl that led to an overdose death. In April 2023, a woman was sentenced to prison for distributing a substance that contained fentanyl that caused two near-fatal overdoses. The training concluded with a panel of experienced investigators discussing their first-hand experiences in successfully investigating these cases.
Additional trainings will be scheduled in the later part of the year. Law enforcement interested in participating in future training sessions may contact the U.S. Attorney’s Office’s Law Enforcement Coordinator at 704-344-6222.
South Carolina Man Is Sentenced to 13 Years for String of Armed RobberiesRead the Press Release
CHARLOTTE, N.C. – Daquan Hampton, 27, of Clover, South Carolina, was sentenced on Monday to 13 years in prison followed by three years of supervised release for a string of armed robberies in Charlotte, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to filed court documents and the sentencing hearing, on June 8, 2022, at approximately 11:22 p.m., a Waffle House employee was in the parking lot of the restaurant in Charlotte when two masked men approached him with guns drawn. The two men forced the employee inside the restaurant and demanded money from the cash registers. The employee replied that he was not able to open the safe without a key. At one point, one of the suspects, later identified as Hampton, used his firearm to pistol-whip the victim in the side of the head and took the victim’s fanny pack. Hampton and the other individual then exited the Waffle House through the back door.
Court records show that two days later, on June 10, 2022, a distraught Domino’s Pizza employee placed a call to 911 to report that two men had robbed the business at gunpoint, stealing cash. According to the victim, two masked men armed with black handguns had approached the victim, who was a delivery driver, while he was sitting in a car. The suspects forced the victims inside the restaurant at gunpoint. Upon entering, the suspects encountered another employee and held him at gunpoint as well while they demanded that the employees open the safe. One of the employees said it would take a while, and at that point Hampton started counting down from five, causing the employees to believe that they were going to be shot. Hampton then pistol‐whipped one of the employees in the back of the head. Hampton then fired three rounds at the safe, and shrapnel from the shots struck one of the employees in the hand, causing lacerations and bleeding. Hampton and his accomplice then forced both employees to the back of the business with guns pointed at their heads. Hampton and his accomplice fled with $125 in cash they had stolen from the business and $100 they took from an employee.
Approximately 18 hours after the Domino’s Pizza robbery, two masked men entered through the front door of a Papa John’s Pizza restaurant located in Charlotte. One of the men demanded money and ordered all six occupants to the back room where he made them get on the floor. The second man remained with the victims at gunpoint while the other had employees access the cash registers and safe. The employee could not open one of the registers, so one of the men pistol‐whipped him, causing a laceration to the victim’s head. The men took $880 from the store’s registers and fled out of the back door on foot.
On June 14, 2022, a CMPD officer conducted a traffic stop of Hampton’s vehicle for a traffic violation. Hampton was arrested after the officer recovered a firearm Hampton had attempted to discard during the traffic stop. Inside Hampton’s vehicle, law enforcement found marijuana, $1,417 in cash, and two loaded Glock 23 magazines.
On August 1, 2023, Hampton pleaded guilty to conspiracy to commit Hobbs Act robbery, Hobbs Act robbery and aiding and abetting, and possession and discharging of a firearm in furtherance of a crime of violence.
Hampton is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the FBI and CMPD for their investigation of the case.
Assistant U.S. Attorneys Alfredo De La Rosa and Regina Pack prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Convicted Felon Is Sentenced to Prison for Illegal Possession of A FirearmRead the Press Release
CHARLOTTE, N.C. – On Monday, U.S. District Judge Robert J. Conrad Jr. sentenced Deddrick Ray Ervin, 35, of Charlotte, to 46 months in prison followed by two years of supervised release for possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to documents filed with the court and court proceedings, on December 12, 2022, law enforcement encountered Ervin while patrolling an area in Charlotte that had received numerous complaints and calls for service relating to criminal activity. Law enforcement encountered Ervin and attempted to stop Ervin’s vehicle, but Ervin did not comply. According to court records, law enforcement later located Ervin hiding in a shed and he was arrested. Law enforcement located a backpack in the shed that contained fentanyl, methamphetamine, and marijuana, and recovered a firearm from the scene.
On August 8, 2023, Ervin pleaded guilty to possession of a firearm by a convicted felon. Ervin has a prior conviction in Georgia of felon in possession of a firearm, and a South Carolina state conviction for kidnapping, and he is prohibited from possessing a firearm.
Ervin is in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the ATF and CMPD for their investigation of the case.
Assistant U.S. Attorney Alfredo De La Rosa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Charlotte Man Is Sentenced to 34+ Years for Armed RobberyRead the Press Release
CHARLOTTE, N.C. – Robert Lee Barringer, 49, of Charlotte, was sentenced on Monday to 412 months in prison followed by five years of supervised release, for the armed robbery of a Charlotte-area business, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, on July 26, 2021, at approximately 10:15 p.m., CMPD officers responded to the Fish House North, a business engaged in adult arcade games, in reference to a shooting and robbery. Officers encountered three victims on the scene, an employee, his wife, and a security guard who worked for the establishment. All three victims had suffered gunshot wounds and had sustained serious and extensive injuries. According to court documents, the victims stated that an individual, later identified as Barringer, had robbed the business. The victims indicated that Barringer had approached the business and as he was trying to force his way into the business, he began to shoot at the victims striking them. After Barringer entered the business, he shot his firearm several more times at the victims. Barringer then ordered one of the victims to hand over the keys to the register and forced another victim to open the register. Barringer stole $3,500 from the business and fled the scene.
After speaking with the victims, law enforcement determined that Barringer was a former employee who had been fired approximately a month prior. Crime scene investigators recovered 17 cartridge casings from the scene and observed multiple bullet holes within the business. On July 28, 2021, law enforcement located and arrested Barringer at a hotel in Charlotte.
On August 5, 2022, Barringer was found guilty to interference with commerce by robbery, and use, carry, and possession of a firearm during and in relation to a crime of violence. Barringer has a lengthy criminal history for federal and state convictions, including assault with a deadly weapon and possession of a firearm by a felon, and he is prohibited from possessing firearms or ammunition.
Barringer will remain in federal custody pending designation of a federal facility by the federal Bureau of Prisons.
In making today’s announcement, U.S. Attorney King thanked the FBI and CMPD for their investigation of the case.
Assistant U.S. Attorneys Christopher Hess and Timothy Sielaff prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Armed Fentanyl Trafficker Is Sentenced to 12+ Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Chad Clay, 31, of Charlotte, was sentenced on Monday to 151 months in prison for distribution of fentanyl and methamphetamine and possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, from July of 2022 through October of 2022, Clay sold fentanyl and methamphetamine on multiple occasions to an undercover officer (UC) in Charlotte. In addition to the drugs, Clay sold the UC several firearms, including a handgun that had been reported stolen and a rifle with two high capacity magazines. Court records show that Clay has multiple prior convictions, including conspiracy to commit common law robbery and assault with a deadly weapon inflicting serious injury. Due to these criminal convictions, Clay is prohibited from possessing firearms or ammunition.
On March 16, 2023, Clay pleaded guilty to three counts of distribution of fentanyl, one count of distribution of methamphetamine, and one count of possession of a firearm by a convicted felon. Clay will remain in the custody of the U.S. Marshals Service pending transportation to a designated federal Bureau of Prisons’ facility.
In making today’s announcement, U.S. Attorney King thanked the ATF and CMPD for their investigation of the case.
Assistant U.S. Attorney Timothy Sielaff of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney's Office Advocates the Protection and Safety of Older Adults Through Education and Community AwarenessRead the Press Release
CHARLOTTE, N.C. – World Elder Abuse Awareness Day (WEAAD) is on Saturday, June 15th. In observance of WEAAD, the U.S. Attorney’s Office is reaffirming its commitment to protect older adults from abuse, neglect, and fraud. WEAAD serves as an important reminder of the prevalence of elder abuse and the need for community awareness, education, prevention, and intervention.
Elder abuse is a growing concern across the nation, affecting millions of older adults each year. It encompasses various forms of mistreatment, including physical, emotional, and sexual abuse, as well as neglect and financial exploitation. The consequences of elder abuse are devastating, often leading to severe physical injuries, emotional trauma, and even death.
“Our elderly population deserves to live with dignity and respect, free from fear of abuse and exploitation,” said Dena J. King, U.S. Attorney for the Western District of North Carolina. “World Elder Abuse Awareness Day shines a light on this critical issue and serves as a call to action for our community to protect our most vulnerable citizens.”
The U.S. Attorney’s Office in collaboration with federal, state, and local law enforcement agencies is dedicated to investigating and prosecuting those who perpetrate crimes against older adults. However, law enforcement alone cannot address this issue; community awareness and preventive measures are equally important.
To mark WEAAD, the U.S. Attorney’s Office planned a series of outreach events and initiatives aimed at raising awareness and educating the public about the signs of elder abuse and the resources available to prevent and address it. These events included:
- Elder Fraud Bingo: This event, held in Asheville today and previously at other locations throughout Western North Carolina, is a fun activity that delivers vital information to older adults and other community members about the types of scams targeting older adults and encourages the reporting of fraud.
- Educational “Walk for Awareness:” In partnership with local senior centers, healthcare providers, local governments, and other community organizations, the U.S. Attorney’s Office participated in a “Walk for Awareness” held in Charlotte and in Asheville. The focus of the events was to bring awareness to elder abuse, help participants recognize the signs of abuse, understand the rights of older adults, and how to access support services.
- Public Service Announcement (PSA): A PSA featuring U.S. Attorney King delivering a message against elder abuse was posted on the U.S. Attorney’s Office’s YouTube Channel and shared on social media, highlighting the importance of recognizing and reporting elder abuse.
- Resource Distribution: The U.S. Attorney’s Office partnered with Mecklenburg County’s Senior Nutrition Program in Charlotte, and Sparc’s Health & Nutrition Program in Asheville, to distribute informational material to homebound older adults through their mobile meal delivery services, to ensure that vital information reaches as many people as possible.
“Our goal is to empower our community with the knowledge and tools to combat elder abuse effectively,” said U.S. Attorney King. “By working together, we can remove the stigma associated with victimization, encourage the reporting of abuse and exploitation, and above all ensure a safer, more supportive environment for our senior citizens.”
The U.S. Attorney’s Office encourages everyone to learn more about elder abuse, neglect and exploitation and to be vigilant in protecting older adults.
If you suspect elder abuse, please contact your local law enforcement or the Eldercare Locator Helpline at 1-800-677-1116 or visit eldercare.acl.gov.
You can also report suspected financial exploitation and fraud by calling the Justice Department’s Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311) or visiting the Elder Justice Initiative at Justice.gov/elderjustice.
Morganton Man Is Sentenced to 17 Years for Trafficking FentanylRead the Press Release
ASHEVILLE, N.C. – Joseph Paul Mosteller, 42, of Morganton, N.C., was sentenced today to 17 years in prison followed by three years of supervised release for trafficking fentanyl, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (NC SBI), Sheriff Banks Hinceman of the Burke County Sheriff’s Office, Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office, and Chief Reed Baer of the Hickory Police Department, join U.S. Attorney King in making today’s announcement.
According to court documents and today’s sentencing hearing, in June 2023, law enforcement initiated an investigation into Mosteller for suspected fentanyl and methamphetamine trafficking in Burke and Catawba Counties. On June 2, 2023, law enforcement were conducting surveillance of Mosteller, and observed the defendant and another individual, who was carrying a shoebox, walking toward Mosteller’s car, which was parked in the parking lot of a hotel in Hickory, N.C. Law enforcement attempted to arrest Mosteller before the defendant drove off in his vehicle. Law enforcement arrested the other individual and seized the shoebox, which contained methamphetamine. The individual told law enforcement that Mosteller had received a delivery of methamphetamine at the hotel the day prior.
According to court documents, on June 22, 2023, law enforcement believed Mosteller had received methamphetamine and was located at a residence in Burke County. Law enforcement observed Mosteller enter a vehicle that had been parked in the driveway. As Mosteller drove off in the vehicle, law enforcement attempted to conduct a traffic stop but Mosteller did not stop and instead began to drive off at a high speed. Mosteller travelled several miles before colliding into an embankment. Law enforcement arrested Mosteller and seized a paper bag located inside the vehicle, that contained multiple controlled substances, including fentanyl, packaged for distribution. Later the same day, law enforcement executed a search warrant at the Burke County residence. During the search, law enforcement seized additional distribution amounts of fentanyl and digital scales.
Chief U.S. District Judge Martin Reidinger presided over Mosteller’s hearing and ordered the defendant to remain in the custody of the U.S. Marshals Service pending transportation to a designated federal Bureau of Prisons facility.
U.S. Attorney King thanked the ATF, the NC SBI, the Burke County Sheriff’s Office, the Catawba County Sheriff’s Office, and the Hickory Police Department for their investigation of the case.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville prosecuted the case.
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Armed Man Sentenced for Attempted Kidnapping on the Blue Ridge ParkwayRead the Press Release
ASHEVILLE, N.C. – A Whittier, N.C. man has been sentenced following his conviction for possession of a firearm during an assault on the Blue Ridge Parkway, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Evan William Blankenship, 23, was sentenced to 120 months in prison followed by three years of supervised release after he pleaded guilty to possession and discharge of a firearm in furtherance of a crime of violence.
Debra A. Flowers, Acting Chief Ranger of the Blue Ridge Parkway, joins U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, in the early morning hours of September 28, 2023, L.P. and a second victim, L.M., were sitting in a parked vehicle at Water Rock Knob Overlook off the Blue Ridge Parkway. Blankenship drove his vehicle to where the victims were located and pointed a semi-automatic pistol at them. He tried to pull L.P. out of the vehicle by the hair and arm, threatened to harm both victims, and struck L.P. in the face, causing temporary hearing loss. Blankenship also fired his firearm into the air before pointing it again at the victims.
L.M. eventually convinced Blankenship to let them go, and the victims reported the incident to law enforcement. Shortly thereafter. L.P. informed investigators that she knew Blankenship through Snapchat and believed he had used Snapchat’s location-sharing feature to find her on the Blue Ridge Parkway.
Blankenship was arrested on October 11, 2023, and has remained in federal custody since. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King thanked the National Park Service for their thorough investigation and the Jackson County Sheriff’s Office for their assistance with the case.
Assistant U.S. Attorney Alex M. Scott, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Charlotte Man Pleads Guilty to Wire Fraud for Investment Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Frank Lynold Mercado, 26, of Charlotte, pleaded guilty today to wire fraud for defrauding over 100 victims of more than $700,000 through a fraudulent investment scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
According to plea documents and today’s court proceedings, from July 2019 to December 2022, Mercado executed an investment fraud scheme in which he caused more than 100 investors to suffer almost $700,000 in losses. Mercado’s victims included friends, former co-workers, and other social acquaintances. Mercado induced the victims to invest their money by holding himself out to be an expert in options trading with years of experience and a successful track record. As part of the scheme, Mercado falsely represented to victim investors that he would use their money for options trading and similar investments through his hedge fund, Tiger-Wolf Capital, LLC (Tiger-Wolf Capital). Instead of investing the funds as promised, Mercado used a substantial portion of the investors’ money to fund his personal lifestyle, including to make large credit card payments and pay for personal expenditures such as Airbnb rentals, restaurants, and bars. As Mercado admitted in court today, he also used the investors’ money to make Ponzi payments to previous investors.
Court documents show that with the money that he did invest, Mercado suffered trading losses and then lied to investors about the performance of their investments. For example, Mercado periodically sent updates to victim investors through emails, text messages, or screenshots of purported account portals that reflected fictitious trading gains. He also made false and fraudulent statements to investors about substantial returns on their investments in order to induce his victims to invest additional money with him and/or to leave their current investments with him.
Mercado was released on bond following his plea hearing. The wire fraud charge carries a maximum prison sentence of 20 years. A sentencing date has not been set.
On May 30, 2024, the U.S. Securities and Exchange Commission announced the filing of a complaint against Mercado in the U.S. District Court for the Western District of North Carolina, charging Mercado and Tiger-Wolf Capital with securities violations.
U.S. Attorney King commended the FBI for their investigation of the case and thanked the U.S. Securities and Exchange Commission for their coordination and assistance.
Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
U.S. Attorney's Office Shares Tips for Increasing Children's Online Safety During the Summer MonthsRead the Press Release
CHARLOTTE, N.C. – During the summer months, the internet can be an essential tool for children and families, as digital
technology can provide educational material and entertainment for kids while helping them stay connected with friends and classmates. At the same time, increased online presence, if unmonitored, may expose children to potentially adverse effects, including predatory individuals and cyberbullying.
“Ensuring the safety of the most vulnerable in our society is my Office’s highest priority,” said Dena J. King, U.S. Attorney for the Western District of North Carolina. “Protecting children and helping them develop and maintain healthy online behaviors requires a concerted effort by everyone entrusted with the well-being of young people. Our tips and tools can aid parents, guardians, caregivers, and children understand the risks that lurk online and how to stay safe in the digital realm.”
Engaging in discussions about online safety with children at an early age and maintaining those conversations over time can help them better navigate the online sphere. The following topics can facilitate conversations about enhancing children’s cyber safety:
Elementary School-Age Children:
- Discuss Internet Safety and Develop an Online Safety Plan for engaging in online activity. Establish clear guidelines, teach children to spot red flags, and reinforce open communication.
- Review Games, Apps, and Social Media Sites before they are downloaded, paying special attention to apps and sites that feature end-to-end encryption, direct messaging, video chats, file uploads, and user anonymity, which are frequently exploited by online child predators. Make the profile private and teach children NOT to accept requests from people you don’t know in real life.
- Adjust Privacy Settings and Use Parental Controls for online games, apps, social medial sites, and electronic devices. Extra caution should be used in gaming platforms that can commonly expose children to cyberbullying, scams, predators, and inappropriate content.
- Supervise Young Children’s Use of the Internet and Gaming Platforms, including periodically checking their profiles and posts. Keep electronic devices in open and common areas and consider setting time limits for their use.
- Encourage Children to Tell a Parent, Guardian, or Other Trusted Adult if anyone asks them to engage in inappropriate behavior.
Middle School and High School-Age Children:
- Establish the Importance of Online Privacy, by emphasizing the dangers of sharing personal information, photos, and videos online especially in public forums or with people they don’t know in real life. Explain that sharing with friends can also lead to concerns because of re-sharing, and help children understand that once images are posted online, they will remain permanently accessible on the internet.
- Teach Children About Body Safety and Boundaries, including the importance of saying ‘no’ to inappropriate requests in the physical and the virtual world. Remain vigilant against sextortion schemes that routinely target children using common social media sites, gaming sites, or video chat applications.
- Develop Healthy Skepticism by encouraging children to challenge the authenticity of what they see and read in online posts, messages, forums, and social media platforms. In particular, urge minors to be wary of online predators using fake accounts to pose as their peers and using fake photos or videos to lure children into sharing pictures and videos of themselves, which can easily lead to a sextortion scheme.
- Be Alert to Potential Signs of Abuse, including changes in children’s use of electronic devices, attempts to conceal online activity, withdrawn behavior, angry outbursts, anxiety, and depression.
- Proactively Engage in Discussions About the Pitfalls of Artificial Intelligence which can be misused by child predators and others to cyberbully children and produce fake content that looks real.
Adolescents and Young Adults:
- Reinforce Strong Online Habits such as robust passwords, two-factor authentication, using a password manager, and applying routine system updates on devices and operation systems.
- Build Upon Privacy Lessons with an emphasis on how over-sharing personal information on social media platforms can lead to potential adverse impacts, to include online reputations and cyberbullying.
- Avoid Dangerous Distractions through the responsible use of devices while driving and remain extra vigilant against device and password theft.
- Be Vigilant Against Scams prevalent on ads that appear on shopping platforms and other social media sites that can lead to the fraudulent sale of defective or counterfeit items or to non-delivery of purchased items.
- Protect Against Phishing schemes in texts, emails, and social media posts where fraudsters can impersonate a trusted individual or organization and trick users into providing login credentials, sending money through Cash App, Zelle, or Venmo, or unwittingly installing malware on devices.
Immediately Report Suspected Online Enticement or Exploitation of a Child by alerting law enforcement or filing a report with the National Center for Missing & Exploited Children (NCMEC) at 1-800-843-5678 or report.cybertip.org.
For More Information, Helpful Tools and Additional Resources please visit https://www.justice.gov/criminal/criminal-ceos/keeping-children-safe-online.
To Learn More About the U.S. Attorney’s Office Project Safe Childhood initiative go to https://www.justice.gov/usao-wdnc/project-safe-childhood.
U.S. Attorney's Office Secures Agreement with Rutherford County Restaurant to Ensure Parking Accessibility to Disabled CustomersRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that federal prosecutors have reached an agreement with the owners of the Carolina Cafe in Forest City, N.C. The agreement requires the owners of the Carolina Cafe to make reasonable modifications to its parking lot to create accessible parking spaces for customers with disabilities.
The Justice Department is responsible for enforcing the Americans with Disabilities Act of 1990 (ADA) and implementing its regulations. The ADA prohibits the failure to make reasonable modifications where those modifications are necessary to make services available to individuals with disabilities. Under the ADA and its regulations, businesses are required to remove barriers for individuals with disabilities by creating designated accessible parking spaces.
The U.S. Attorney’s Office initiated an investigation following a complaint filed with the Justice Department, claiming that Carolina Cafe violated the ADA by failing to provide clearly marked and designated accessible parking for individuals with disabilities. The ADA requires that state or local governments, businesses, or non-profit organizations that provide parking lots or garages, must provide accessible parking spaces for disabled individuals. Accessible parking spaces are different than traditional parking spaces. They have specific features that make it easier for people with disabilities to access programs, goods, or services. As such, accessible parking spaces must be located on the shortest accessible route to the accessible entrance; must be marked to discourage other drivers from parking in them; and must adhere to the ADA guidelines in terms of the number of spaces, dimensions, and presence of an access aisle. A full list of requirements is available in the 2010 ADA Standards of Accessible Design. Upon learning of the complaint, the owners of Carolina Cafe cooperated with the investigation and agreed to remedy the violation and immediately began to work on creating the accessible parking spaces.
“Ensuring the ADA’s enforcement and safeguarding civil rights within this District is a paramount commitment of my Office,” said U.S. Attorney King, who also leads the Attorney General’s Advisory Subcommittee on Civil Rights. “Individuals with disabilities have a right to unhindered access to businesses, free from barriers such as inadequate parking or navigating through congested areas. I want to thank the concerned customer for bringing this matter to our attention, and I'm pleased that Carolina Cafe has agreed to the terms and has taken immediate action to ensure that individuals with disabilities will be fully accommodated in accordance with federal law moving forward.”
This matter was handled by Assistant U.S. Attorney (AUSA) Janice Powers and Investigator Neil Power of the U.S. Attorney’s Office in Charlotte. AUSA Powers also serves as the U.S. Attorney’s Office’s Civil-Civil Rights Coordinator.
Individuals who believe they have been victims of discrimination may file an ADA complaint online at https://www.ada.gov/file-a-complaint/. Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at 800-514-0301 (voice) or 1-833-610-1264 (TTY).
U.S. Attorney's Office Participates in Walk for Awareness Event to Highlight Elder Abuse Awareness DayRead the Press Release
CHARLOTTE, N.C. – In advance of World Elder Abuse Awareness Day on June 15, 2024, the U.S. Attorney’s Office joined Age-Friendly Mecklenburg and AARP-Charlotte to co-host a Walk for Awareness at Freedom Park in Charlotte. Community leaders, elected officials, Mecklenburg County personnel, federal and state prosecutors and staff, law enforcement partners, AARP volunteers, community organizations and private citizens joined this important event to increase awareness and support efforts to prevent the exploitation, neglect and abuse of older adults in our community.
First recognized on June 15, 2006, by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations, World Elder Abuse Awareness Day (WEAAD) seeks to promote a better understanding of the abuse and neglect suffered by millions of older adults – crimes that are often overlooked or unreported. WEAAD brings attention to the cultural, social, economic, and demographic factors that contribute to elder abuse.
“Elder abuse can manifest in various forms, including physical, emotional, and financial abuse, as well as neglect and exploitation. It’s a growing concern that demands our immediate attention and action,” said U.S. Attorney King, who also serves on the Attorney General’s subcommittee on elder justice. “Participating in community events that shine a light on this important topic is crucial in our fight to protect vulnerable older adults. Whether it’s to support a loved one, to advocate for the rights of older adults, or to raise awareness in the community, these events not only educate the public on recognizing and preventing crimes involving the elderly, but also foster a sense of collective responsibility. By coming together, we can create a safer, more supportive environment for our older population and ensure that older adults receive the respect and protection they deserve from all of us.”
“Protecting those in our community who have come before us, and helping them live their golden years to their fullest, is something we in Mecklenburg County are dedicated to continuing to hold up to the highest degree,” said Mecklenburg Board of County Commissioners Chairman George Dunlap. “Our employees who work with our elders each and every day are part of that protection, and continuing to provide resources for them to continue to thrive today and in the future is one of our top priorities.”
“Although fraud and scams impact people of all ages, when older adults are scammed, they tend to lose more money. Fraud targeting elders remains a pervasive and growing problem. The Federal Trade Commission reported a record number of money lost to scams in 2023. AARP and North Carolina partners are doing more to help people spot, prevent, and report fraud. This week, a new on demand “scam jam” will be available on YouTube @AARPNC1, where members of the NC Senior Fraud Taskforce share important information about pervasive scams and how to find help,” said AARP Associate State Director Rebecca Gilbert.
According to the FBI’s 2023 Internet Crimes Report, the agency’s Internet Crime Complaint Center (IC3) received a record number of complaints from the American public with potential financial losses exceeding $12.5 billion, a 22% increase compared to 2022. The report also indicates that North Carolina is ranked 13th both in the number of complaints filed with the FBI and in financial losses sustained due to online schemes and financial fraud. Individuals 60 and above filed the most complaints (101,068) and sustained $3.4 billion in losses, the highest among all groups. The report further indicates that tech support scams continue to impact older adults disproportionately, accounting for half of all the financial losses of online schemes. In addition, government impersonation, phishing, romance scams, and non-delivery schemes continue to cost millions in losses for the 60+ population.
Through prosecutions, the U.S. Attorney’s Office continues to combat elder fraud involving domestic and transnational perpetrators. Major strides have already been made to that end:
- In April 2024, two men were indicted for allegedly laundering millions of dollars in fraud proceeds in the United States and Nigeria, stemming from romance scams targeting elderly victims and other online schemes. A third defendant has pleaded guilty for his role in the conspiracy.
- In November 2023, a Conover, N.C., woman pleaded guilty after she was charged with stealing more than $300,000 from an elderly couple.
- In August 2023, a Jamaican national pleaded guilty to conspiracy charges in connection with a fraudulent lottery scheme that targeted elderly Americans.
- In April 2023, a Charlotte man was indicted for an international multi-million dollar tech support fraud scam that allegedly defrauded thousands of victims throughout the United States, some of whom were elderly, of more than $7 million.
In addition to prosecuting elder fraud cases, the U.S. Attorney’s Office, through its Elder Justice Initiative, partners with law enforcement agencies, government entities, and community organizations to ensure that older adults, caretakers, and those who come in frequent contact with the elderly are educated on how to detect, prevent, and report elder fraud, neglect, and abuse.
The U.S. Attorney’s Office continues its efforts to educate the public by distributing the latest trends in schemes targeting older adults and sharing tips on how to be protected from scammers.
In April 2024, the U.S. Attorney’s Office shared a scam alert issued by the Social Security Administration (SSA) Office of the Inspector General (OIG) about alarming reports of fraudsters impersonating SSA OIG agents. In this latest iteration of government imposter scams, fraudsters request victims to meet them in person to hand off cash. Variations of the scam include fraudsters posing as IRS agents demanding money for unpaid taxes, as sheriff’s office deputies threatening arrest for purported outstanding fines, and as prosecutors or court personnel threatening prosecution or jail time for failing to comply with jury duty service.
Additional financial schemes targeting older Americans are:
- Tech Support Scams – Convince victims to pay for non-existent problems with their computers.
- Non-Delivery Scams – Induce victims to pay for goods or services online, but never receive them. A variation of this scheme is victims receiving emails or texts messages that appear to be from legitimate shipping companies (e.g., UPS, FedEx) with fake non-delivery notifications, claiming that payment or additional personal information is required to complete a package delivery.
- Romance Scams – Lull victims into believing they are in an online romantic relationship and their paramour needs money to pay for a visit to the U.S. or for some other purpose.
- Grandparent Scams – Dupe victims into thinking that their grandchildren or other relatives are in trouble and need money right away for bail or another emergency.
- Charity Scams – Solicit donations for fake charities, or by altering or “spoofing” caller IDs to show the name of a real charity on the phone.
- Lottery Scams – Scammers use phone calls, letters, or emails to convince victims that a large fee or taxes must be paid before they can receive lottery winnings.
- Debt Collection Scams – Victims are threatened with arrest and jail time if payment for a fake debt is not made immediately.
- Money Mule/Money Laundering Scams – Convince victims to use their existing or new bank accounts to quickly move funds in and out of those accounts. Generally, the transferred funds are proceeds of other criminal schemes (such as romance schemes) and victims are unwittingly being used to launder the ill-gotten funds.
- Timeshare Scams – Fraudsters target timeshare owners with false promises of resale and exit from their timeshares for a fee.
- Sham Business Opportunities – Convince victims to invest in lucrative business opportunities or fake investments.
Here are some tips on how to avoid falling victim to a financial scam:
- Don’t share personal or financial information with anyone you don’t know.
- If the person asking the information claims to be a relative, a friend, someone you know, or a representative of a financial institution or government agency, do not respond right away. Instead, contact the person/entity independently or ask a trusted family member or friend for help.
- Don’t pay a fee for a prize or lottery winning.
- Don’t click on pop-up ads, messages, or virus warnings.
- 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 or someone who claims to be a relative without verifying the person’s identity.
- Don’t fall for a high-pressure sales pitch or lucrative business deals.
- If you suspect fraud, take the time to talk to a trusted friend or family member.
- It’s not rude to say, “NO.”
- Keep in mind that if you send money once, you’ll be a target for life.
- A good rule of thumb is, if it’s too good to be true, it’s likely a scam.
- And remember, there is no shame in falling prey to an online scammer. These are professional criminals that use tried-and-true tactics to perpetrate fraud.
The U.S. Attorney’s Office urges the public to report suspected elder fraud by calling the Justice Department’s Elder Fraud Hotline at 1-833-FRAUD-11 (833-372-8311) or visiting the Elder Justice Initiative at Justice.gov/elderjustice for additional information and resources.
Discord User Who “Catfished” Young Victims Is Sentenced to 21 Years in Prison for Production of Child PornographyRead the Press Release
CHARLOTTE, N.C. B Aaron Joseph Wehrstein, 25, of Columbus, N.C., was sentenced yesterday to 21 years in prison for production of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Wehrstein was also ordered to pay a $5,000 special assessment, to serve a lifetime of supervised release, to pay restitution to the victims of his offense, and to register as a sex offender after he is released from prison.
Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Sheriff Timothy Wright of the Polk County Sheriff’s Office, join U.S. Attorney King in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, law enforcement received a tip from the National Center for Missing and Exploited Children (NCMEC) alerting them that an individual with the screenname JessicaLovesYou#1816 was using Discord to distribute child pornography. Discord is a popular free application that allows users to communicate with each other via voice and video calls and text messaging, and to share media files through private chats or communities.
Court records show that law enforcement initiated an investigation and determined that the Discord user was Wehrstein. The investigation further revealed that Wehrstein would “catfish” minor males via Discord by posing as a female and would send the unsuspecting minors sexually explicit images of females, claiming to the person in those images. Wehrstein would then induce the minor victims to reciprocate by creating and sending him sexually explicit images and videos of themselves.
In September 2021, law enforcement executed a search warrant at Wehrstein’s residence, seizing several electronic devices. A forensic analysis of those devices revealed that, in addition to using Discord, Wehrstein also used Twitter to communicate with minors and to receive child pornography created by the victims. In total, Wehrstein possessed more than 4,197 images and videos of child pornography. The investigation further determined that Wehrstein had induced at least eight male victims, between the ages of 12 and 17, to produce and send him child pornography via Discord and Twitter.
“Wehrstein is an online predator who used a catfishing scheme to prey upon innocent victims, causing them significant emotional distress and mental anguish,” said U.S. Attorney King. “My office and our law enforcement partners are committed to protecting vulnerable young people from predators like Wehrstein and seeking justice for victims harmed by this deplorable criminal conduct.”
“Homeland Security Investigations aggressively pursues child predators, and cases involving child sex abuse material. Now Wehrstein will be held accountable for his predatory and reprehensible behavior,” said Special Agent in Charge Morant. “Today we are once again reminded of the need for constant online vigilance to protect the most vulnerable among us.”
On March 29, 2024, Wehrstein pleaded guilty to using a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. Wehrstein will remain in federal custody until he is transferred to the custody of the federal Bureau of Prisons.
U.S. Attorney King thanked the HSI and the Polk County Sheriff’s Office for their investigation of this case.
Assistant U.S. Attorney Alexis Solheim of the U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
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Former Chief Financial Officer Is Sentenced to Prison for Embezzlement SchemeRead the Press Release
CHARLOTTE, N.C. – John M. Casper, 60, of Charlotte, was sentenced today to 24 months in prison followed by one year of supervised for embezzling thousands of dollars from his employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, between 2018 and 2020, Casper misused his position as Chief Financial Officer (CFO) to embezzle more than $694,000 from the victim company. Court documents show that Casper executed the embezzlement scheme by conducting approximately 112 unauthorized financial transactions, transferring funds from the victim company’s accounts to bank accounts under Casper’s control. As the victim company’s CFO, Casper used his access to the company’s accounting system to disguise the fraud, by creating fake or incorrect financial entries in the company’s books and records so that the victim company’s books would reconcile.
On September 19, 2023, Casper pleaded guilty to wire fraud. Casper will be ordered to report to a designated United States Bureau of Prisons facility to begin serving his sentence of incarceration.
In making today’s announcement, U.S. Attorney King thanked the FBI in Charlotte for their investigation of the case.
Assistant U.S. Attorney Graham Billings of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Charlotte Woman Is Sentenced to Prison for Dealing in Firearms Without A LicenseRead the Press Release
CHARLOTTE, N.C. – Kayrin English, 27, of Charlotte, was sentenced today to 24 months in prison followed by one year of supervised release for dealing in firearms without a license, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney King in making today’s announcement.
According to court records and today’s sentencing hearing, ATF agents learned that between February 2020 and August 2021, English had applied for 36 firearm purchase permits. ATF agents also learned that in September 2021, English had applied for an additional seven firearm purchase permits. ATF agents approached English when she arrived to collect the seven permits and conducted a consensual interview. During the interview, English told ATF agents that she would generally obtain the permits and use them to purchase firearms, which she would then resell for profit to individuals who were prohibited from owning or purchasing their own firearms. Court records show that English admitted to ATF agents that, since January 2021, she had illegally sold approximately 15 to 20 firearms. English also told ATF agents that most of the illegal firearms transactions were local, however, she had previously travelled to New Jersey where she sold several firearms she had purchased in Charlotte.
On October 31, 2023, English pleaded guilty to dealing in firearms without a license. She is currently released on bond and will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.
The ATF led the investigation. Assistant U.S. Attorney Alfredo De La Rosa, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Avery County Man Is Sentenced to Prison for Making A Destructive Device and Related ChargesRead the Press Release
ASHEVILLE, N.C. – An Avery County man was sentenced today to 97 months in prison followed by three years of supervised release for making a destructive device and related offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (NC SBI), and Sheriff Mike Henley of the Avery County Sheriff’s Office, join U.S. Attorney King in making today’s announcement.
Thomas Dewey Taylor, Jr., 45, of Newland, N.C., previously pleaded guilty to attempting to damage and destroy a building used in interstate commerce by fire and explosive, possession of an unregistered National Firearms Act weapon, and making a destructive device. U.S. District Judge Martin Reidinger imposed Taylor’s sentence today in federal court.
According to court records and today’s sentencing hearing, Taylor was a former employee of the Grandfather Mountain Highland Games, Inc. (GMHG), located in Linville, N.C. On September 27, 2021, Taylor disabled the alarm system to the GMHG office, turned off the main power breaker, and hid a destructive device in an office closet. The destructive device consisted of a 48-quart cooler housing fuses bundled together and tied to an electric burner hotplate. The fuses ran to fireworks and containers of ignitable liquids. The hotplate was plugged into an extension cord which was plugged into an electrical receptacle in the closet. Also inside the cooler was a glass pitcher with rocks and a PVC pipe bomb. Court records show that the destructive device was constructed so it would ignite once someone turned on the main power breaker, resulting in an explosion designed to cause property damage, injury, and death to persons nearby.
Taylor remains in the custody of the U.S. Marshals Service pending placement by the Bureau of Prisons.
In making today’s announcement, U.S. Attorney King commended the ATF, the NC SBI, and the Avery County Sheriff’s Office for their investigation of the case. Assistant U.S. Attorney Alex M. Scott, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
U.S. Attorney's Office for the Western District of North Carolina Commends the Release of Framework for Prosecutors to Strengthen National Response to Sexual Assault and Domestic ViolenceRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King of the Western District of North Carolina commends the announcement of the Department of Justice’s new resource for prosecutors, “Framework for Prosecutors to Strengthen Our National Response to Sexual Assault and Domestic Violence Involving Adult Victims.”
The announcement was made today in Dallas, Texas, at the Conference on Crimes Against Women by Rosemarie Hidalgo, Director of the Office on Violence Against Women (OVW). The guide, written by prosecutors for prosecutors, sets out five principles that, if implemented, will lead to better outcomes for victims, safer communities, and greater accountability for perpetrators of sexual assault and domestic violence.
“The framework announced today reaffirms our commitment to expanding access to justice for all survivors, who deserve respect and the right to be heard,” said the Department’s Office on Violence Against Women (OVW) Director Rosie Hidalgo. “Enhancing the prosecution response to sexual assault and domestic violence in a trauma-informed manner is a key piece in ending gender-based violence, as part of a broader coordinated community response that includes services and support for survivors, and can have a real, immediate impact on the safety of survivors and entire communities.”
“I commend the guidance announced today and reaffirm my Office’s dedication to strengthening the prosecution of sexual assault and domestic violence crimes in the Western District of North Carolina,” said U.S. Attorney King. “This framework is a vital resource for federal prosecutors because it underscores that justice and healing are interconnected and mutually reinforcing concepts. The guidance guarantees that we will do all we can to hold perpetrators accountable for their actions, while ensuring that we support victims and survivors every step of the process, protect their health and safety, respect their experiences, and promote their healing.”
Declinations of meritorious allegations may result from misconceptions about how crimes involving sexual assault and domestic violence are committed and reported, how victims give their accounts, and the evidence required to prove their accounts. This guide equips prosecutors to build provable cases by: (1) relying on the evidentiary value of the victim’s account to frame the investigation; (2) meeting with victims and working with investigators and victim specialists to do so; (3) using the law and evidentiary rules effectively; (4) being thoughtful about what justice and accountability look like; and (5) sustaining a productive, healthy, and committed workforce by redefining success– all of which are rooted in a prosecutor’s primary obligation to seek the truth and uphold the U.S. Constitution and the rule of law.
In making today’s announcement, U.S. Attorney King said, “The framework emphasizes the importance of supporting and advocating for victims and survivors of domestic violence and sexual assault within our criminal justice system. Equally important are our ongoing efforts to educate the public about sexual assault and domestic violence prevention, and to administer federal grants that support organizations dedicated to individuals whose lives have been affected by gender-based violence. When victim advocacy remains central in our collective efforts, we ensure that impacted individuals have access to the care, support, and resources they need and the justice they deserve, and we empower communities to take proactive steps to foster safe environments for all.”
More than 120 state, Tribal, military, and federal prosecutors, as well as advocates, academics, and investigators from an array of jurisdictions were consulted in developing this guide. This guide is designed to encourage prosecutors with all levels of experience to implement its principles when evaluating, investigating, and prosecuting allegations involving sexual assault and domestic violence. In conjunction with this guide, OVW launched a new webpage with resources designed to assist prosecutors in implementing the guide and its principles. This guide further serves as a complement to the Justice Department’s 2022 updated guidance on Improving Law Enforcement Response to Sexual Assault and Domestic Violence by Identifying and Preventing Gender Bias.
For additional information about the U.S. Attorney’s Office please visit our website. Contact details and information about our Victim Witness Unit can be found here.
OVW 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 funds national training and technical assistance and undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at https://www.justice.gov/ovw.
Indian National Pleads Guilty to Wire Fraud Conspiracy for Stealing over $37 Million by Spoofing Coinbase's WebsiteRead the Press Release
CHARLOTTE, N.C. – Chirag Tomar, 30, a citizen of the Republic of India, appeared before U.S. Magistrate Judge Susan C. Rodriguez today and pleaded guilty to federal charges for stealing more than $37 million through a spoofing scheme of the Coinbase website, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Tomar was arrested at the Atlanta airport on Dec. 20, 2023, upon entering the United States, and remains in federal custody.
Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s plea hearing, in or about June 2021, Tomar and his co-conspirators engaged in a scheme to steal millions in cryptocurrency from hundreds of victims located worldwide and in the United States, including in the Western District of North Carolina. Tomar and his co-conspirators executed the fraud by “spoofing” the Coinbase website. Coinbase is one of the largest virtual currency exchanges in the world, that allows customers to buy, sell or trade cryptocurrencies. Coinbase users can also store their cryptocurrencies in their virtual exchange wallets. Upon logging in, users are able to quickly access their wallets and transfer the cryptocurrencies to other wallets or other outside linked accounts. Coinbase operated a “Pro” version of its exchange, which was found at the URL “Pro.Coinbase.Com.”
According to court documents, Tomar and his co-conspirators spoofed the Coinbase Pro website by using a similar fake URL, CoinbasePro.Com. In order to deceive unsuspecting users into believing they were accessing the legitimate Coinbase webpage, the fraudulent website was crafted to mimic the authentic website. Once victims entered their login credentials into the fake website, an authentication process was triggered. In some instances, victims were tricked into providing their login and authentication information of the real Coinbase website to fraudsters. Other times, victims were tricked into allowing fake Coinbase representatives into executing remote desktop software, which enabled fraudsters to gain control of victims’ computers and access their legitimate Coinbase accounts. The fraudsters also impersonated Coinbase customer service representatives and tricked the users into providing their two-factor authentication codes to the fraudsters over the phone. Once the fraudsters gained access to the victims’ Coinbase accounts, the fraudsters quickly transferred the victims’ Coinbase cryptocurrency holdings to cryptocurrency wallets under the fraudsters’ control.
In February 2022, a victim located in the Western District of North Carolina attempted to log into his Coinbase account through the fraudulent website. The spoof website immediately notified the victim that his account was locked and prompted the victim to use a number provided to call a fake Coinbase representative. The fake representative tricked the victim into providing his two-factor authentication information, ultimately gaining access into the victim’s real Coinbase account. Using the information, fraudsters stole cryptocurrency from the victim’s Coinbase wallet worth over $240,000.
As Tomar admitted in court today, Tomar controlled several cryptocurrency wallets that received hundreds of transactions of cryptocurrency stolen from victim accounts at Coinbase, totaling tens of millions of dollars. After Tomar received the stolen cryptocurrency, he would quickly convert it to other forms of cryptocurrency or move the funds amongst many wallets controlled by Tomar and others. Ultimately, the cryptocurrency was converted into cash which was then distributed to Tomar and his co-conspirators.
According to court documents, Tomar used the victims’ funds to pay for his lavish lifestyle, including to purchase a Rolex and other expensive watches, to buy luxury vehicles like Lamborghinis and Porsches, and to make trips to Dubai, Thailand and elsewhere.
Tomar pleaded guilty to wire fraud conspiracy, which carries a maximum sentence of 20 years in prison and a $250,000 fine. A sentencing date has not been set.
U.S. Attorney King commended the U.S. Secret Service for their investigation of the case and thanked the FBI in Nashville for their invaluable assistance.
Assistant U.S. Attorney Matthew T. Warren of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Charlotte Licensed Clinical Social Worker Convicted of Medicaid Fraud, COVID-19 Relief Fraud, and Money LaunderingRead the Press Release
CHARLOTTE, N.C. – A Charlotte behavioral health services provider was convicted today by a federal jury following a nine-day trial, for defrauding the South Carolina Medicaid Program (SC Medicaid), falsely obtaining COVID-19 relief funds, and money laundering, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Stephanie G. Opet, Director of the South Carolina Medicaid Fraud Control Unit, join U.S. Attorney King in making today’s announcement.
Ashley Nicole Cross, 41, of Charlotte, was found guilty of healthcare fraud, making false statements and writings relating to a healthcare matter, promotional money laundering, wire fraud, and conspiracy.
According to trial evidence—including 25 witnesses and over 600 documents—Cross owned and operated Odyssey Health Group (OHG), a Charlotte-based company, which was enrolled with SC Medicaid to provide outpatient behavioral health services to eligible Medicaid beneficiaries. Under SC Medicaid rules, beneficiaries are allowed to use providers within 25-miles of the South Carolina border, including Charlotte. From 2016 to 2021, Cross’s company submitted fraudulent reimbursement claims to SC Medicaid and its contracted managed care organizations for rehabilitative behavioral health services that were never provided. To carry out the scheme, Cross used the personal identifying information (PII) of qualified SC Medicaid beneficiaries to file reimbursement claims totaling $1.3 million dollars. For some claims, Cross bought the PII of Medicaid beneficiaries she used to submit claims. To further the scheme and to give the appearance that OHG’s fraudulent claims were legitimate, Cross instructed OHG employees to create fake clinical service notes after she filed fraudulent claims in the names of Medicaid beneficiaries.
Trial evidence established that in September 2019, Cross was informed of audits of OHG’s Medicaid claims. To cover up the fraud, Cross submitted fictitious patient medical records and made false statements to auditors. Trial evidence further established that Cross engaged in money laundering and used some of the fraudulent proceeds to promote the scheme by paying for Medicaid beneficiary names and PII.
In addition to the Medicaid fraud scheme, evidence showed that from April 3, 2020, to May 14, 2022, Cross executed a scheme to obtain fraudulent Paycheck Protection Program (PPP) loans on behalf of OHG and Gucci International Inc. (Gucci), a purported event planning business owned by Cross’s boyfriend and co-conspirator. To obtain the PPP loans, Cross submitted loan applications and supporting documents that contained false statements regarding OHG’s and Gucci’s payroll expenses, number of employees, and other misrepresentations. Cross obtained more than $287,000 in COVID-19 relief funds for her companies and Gucci. At the time of Gucci’s loan application, Cross’s boyfriend was under indictment for a federal offense.
Cross was remanded into custody after the jury returned its verdict. A federal district court judge will determine Cross’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has not been set.
The FBI investigated the case with substantial assistance from the South Carolina Attorney General’s Office, Medicaid Fraud Control Unit, and the Small Business Administration’s Office of Inspector General.
Assistant U.S. Attorneys Michael E. Savage and Cassye Cole, and Special Assistant U.S. Attorney Kristina Fleisch of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Chairman of Multinational Investment Company and Company Consultant Convicted of Bribery Scheme at RetrialRead the Press Release
A federal jury in Charlotte, North Carolina, convicted the founder and chairman of a multinational investment company and a company consultant yesterday after a retrial for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions.
According to court documents and evidence presented at trial, from April 2017 to August 2018, Greg E. Lindberg, 54, of Durham, North Carolina, the founder and chairman of Eli Global LLC and the owner of Global Bankers Insurance Group (GBIG), and Lindberg’s consultant, John D. Gray, 73, of Chapel Hill, North Carolina, engaged in a bribery scheme involving independent expenditure committees and improper campaign contributions for the purpose of causing the Commissioner of Insurance (Commissioner) of the North Carolina Department of Insurance (NCDOI) to take official action favorable to Lindberg’s company, GBIG. Lindberg and Gray gave, offered, and promised the Commissioner millions of dollars in campaign contributions and other things of value in exchange for the removal of NCDOI’s Senior Deputy Commissioner, who was responsible for overseeing the regulation and the periodic examination of GBIG.
Lindberg, Gray, and the Commissioner held numerous in-person meetings at different locations and had telephonic and other communications with each other, a third codefendant, Robert Cannon Hayes, 74, of Concord, North Carolina, and others to discuss Lindberg’s request for the personnel change in exchange for millions of dollars, and to devise a plan on how to funnel campaign contributions to the Commissioner anonymously. To conceal the bribery scheme, Lindberg directed the establishment of two corporate entities to form independent expenditure committees with the purpose of supporting the Commissioner’s re-election campaign. Lindberg then funded the entities with $1.5 million, as promised to the Commissioner. In addition, at Lindberg’s and Gray’s direction, Hayes caused the transfer of $250,000 from monies Lindberg had previously contributed to a North Carolina state party, which Hayes chaired, to the Commissioner’s re-election campaign.
The jury convicted Lindberg and Gray of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds. They face a maximum penalty of 30 years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Hayes pleaded guilty in October 2019 to making false statements to the FBI.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division and U.S. Attorney Dena J. King for the Western District of North Carolina; Assistant Director Michael Nordwall of the FBI's Criminal Investigative Division; and Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office made the announcement.
The FBI Charlotte Field Office investigated the case.
Trial Attorney William Gullotta of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Lawrence Cameron and Dana Washington for the Western District of North Carolina are prosecuting the case.
Chairman of Multinational Investment Company and Company Consultant Convicted of Bribery Scheme at RetrialRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte convicted the founder and chairman of a multinational investment company and a company consultant today after a retrial for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, join U.S. Attorney King in making today’s announcement.
According to court documents and evidence presented at trial, from April 2017 to August 2018, Greg E. Lindberg, 53, of Durham, North Carolina, the founder and chairman of Eli Global LLC and the owner of Global Bankers Insurance Group (GBIG), and Lindberg’s consultant, John D. Gray, 73, of Chapel Hill, North Carolina, engaged in a bribery scheme involving independent expenditure committees and improper campaign contributions for the purpose of causing the Commissioner of Insurance (Commissioner) of the North Carolina Department of Insurance (NCDOI) to take official action favorable to Lindberg’s company, GBIG. Lindberg and Gray gave, offered, and promised the Commissioner millions of dollars in campaign contributions and other things of value in exchange for the removal of NCDOI’s Senior Deputy Commissioner, who was responsible for overseeing the regulation and the periodic examination of GBIG.
Lindberg, Gray, and the Commissioner held numerous in-person meetings at different locations and had telephonic and other communications with each other, their codefendant, Robert Cannon Hayes, 78, of Concord, North Carolina, and others to discuss Lindberg’s request for the personnel change in exchange for millions of dollars, and to devise a plan on how to funnel campaign contributions to the Commissioner anonymously. To conceal the bribery scheme, at the direction of Lindberg, two corporate entities were set up to form independent expenditure committees with the purpose of supporting the Commissioner’s re-election campaign, and Lindberg funded the entities with $1.5 million as promised to the Commissioner. In addition, at Lindberg’s and Gray’s direction, Hayes caused the transfer of $250,000 from monies Lindberg had previously contributed to a North Carolina state party, of which Hayes was chairman, to the Commissioner’s re-election campaign.
“The defendants planned and executed an intricate scheme involving substantial campaign contributions to an elected official in exchange for favorable treatment. This was not a lapse in judgment. It was a calculated bribery attempt and a blatant violation of federal law,” said U.S. Attorney King. “Public corruption erodes our trust in the people we elect to protect the greater good and lessens our faith in the fundamental principles upon which our society is built. My office will continue to root out public corruption schemes and hold accountable individuals who engage in this unethical and illegal conduct.”
“Greg Lindberg and John Gray knowingly ignored the difference between legal political donations and felonious bribery,” said Special Agent in Charge DeWitt. “They thought they could buy changes to North Carolina Department of Insurance personnel to benefit Lindberg’s businesses. The FBI will work tirelessly to root out any and all forms of public corruption.”
The jury convicted Lindberg and Gray of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds. A sentencing date has not been set. The defendants face a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Hayes pleaded guilty in October 2019 to making false statements to the FBI.
The FBI Charlotte Field Office investigated the case.
Assistant U.S. Attorneys Lawrence Cameron and Dana Washington for the Western District of North Carolina, and Trial Attorney William Gullotta of the Criminal Division’s Public Integrity Section are prosecuting the case.
U.S. Attorney's Office Observes National Police WeekRead the Press Release
CHARLOTTE, N.C. – In observance of National Police Week, U.S. Attorney Dena J. King and the U.S. Attorney’s Office for the Western District of North Carolina recognize the service and sacrifice of federal, state, local, and Tribal law enforcement and pay tribute to the officers who have fallen in the line of duty. National Police Week is observed Saturday, May 11 through Friday, May 17, 2024.
“Throughout National Police Week, we pay tribute to the courageous men and women in law enforcement who made the ultimate sacrifice in service. We will forever remember their valor, dedication, and selflessness in the face of danger,” said U.S. Attorney King. “We also stand in solidarity with our federal, state, local and Tribal law enforcement partners, as we express our gratitude for their unwavering commitment to uphold justice and serve our communities with integrity and distinction.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe.
The names of more than 280 officers killed in the line of duty in 2024 who have been added to the wall at the National Law Enforcement Officers Memorial will be read on Monday, May 13, 2024, at the 36th Annual Candlelight Vigil in Washington, D.C., starting at 8:00 p.m. EST. To view a livestream of this event, visit https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
U.S. Attorney Dena J. King Delivers Commencement Address at Isothermal Community CollegeRead the Press Release
CHARLOTTE, N.C. – Today, U.S. Attorney Dena J. King delivered the commencement address for two graduation ceremonies held at Isothermal Community College (ICC) in Spindale, North Carolina. The first ceremony recognized graduates who earned associate degrees, diplomas, and certificates. The second ceremony recognized students who graduated with adult high school diplomas or general equivalency diplomas.
“It is an honor and a privilege to address the graduating classes of 2024,” said U.S. Attorney King. “I commend the graduates for their determination, resilience, and perseverance to reach this pivotal moment in their lives. I congratulate each of them for reaching this significant milestone and I wish them a future filled with success and endless possibilities as they embark on a new chapter in their lives. I am certain that they will continue to pursue their dreams and make a positive impact on society.”
In her commencement speech, U.S. Attorney King encouraged the graduates to embrace the challenges and opportunities that lie ahead and urged them to continue their journey of lifelong learning. U.S. Attorney King also stressed the importance of acknowledging those who aided graduates along the way, and to pay it forward by supporting others in the pursuit of their aspirations, noting that this is how “we progress in our own lives, and how we advance as a society.”
ICC is one of North Carolina’s leading community colleges serving Rutherford and Polk counties, with three locations, and a leading online learning college. ICC is an accredited institution with more than 100 associate degrees, diplomas, and certificates that prepare students for University transfer or immediate employment. The college also offers short-term, non-degree programs in healthcare, hospitality, emergency services, and more. ICC also serves high school students in the Rutherford Early College High School (REaCH) program, and also offers classes at area high schools through Career and College Promise program.
U.S. Attorney's Office Joins Department of Justice Initiative to Disrupt Transnational Fraud SchemesRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s office for the Western District of North Carolina joined the Justice Department, FBI, U.S. Postal Inspection Service (USPIS), and other federal law enforcement agencies to announce the completion of the Money Mule Initiative, an annual campaign to identify, disrupt, and criminally prosecute networks of individuals who transmit funds from fraud victims to international fraudsters. Fraudsters rely on money mules to facilitate a range of fraud schemes, including those that predominantly impact older Americans, such as lottery fraud, romance scams and grandparent scams as well as those that target businesses or government pandemic funds.
“Criminals perpetrating lucrative financial schemes that defraud unsuspecting American businesses and individual consumers are serious threats to our economic security and stability,” said U.S. Attorney King. “Through our collaboration with our law enforcement counterparts, we aim to identify and dismantle money mule networks and bring perpetrators to justice. Equally important are our efforts to increase public awareness, by educating consumers on how to avoid becoming unwitting money mules and understanding the risks and consequences of being involved in this illegal activity.”
As part of this year’s initiative, law enforcement took action to stop over 3,000 money mules responsible for facilitating a range of fraud schemes. These thousands of actions ranged from criminal prosecutions designed to punish those intentionally assisting fraudsters to warning letters intended to advise those who may have been unknowingly recruited by fraudsters. Agencies are also conducting outreach to educate the public about how fraudsters use money mules and how to avoid unknowingly assisting fraud by receiving and transferring money.
More than 20 individuals were criminally charged for knowingly receiving and forwarding victim funds or otherwise laundering fraud proceeds. These cases included:
- The U.S. Attorney’s Office for the Western District of North Carolina charged two men for allegedly laundering over $4.5 million in proceeds of business email compromise schemes and online romance scams targeting elderly victims. The defendants opened bank accounts to receive wires and other transfers of funds from fraud victims. The defendants then withdrew and transferred the fraud proceeds, including transfers into overseas accounts, and kept a portion of the proceeds for themselves.
- The Consumer Protection Branch and the U.S. Attorney’s Office for the District of New Jersey charged five defendants for allegedly acting as couriers who went to the homes of elderly victims of a grandparent scam to pick up cash, often using false names and providing victims with fake receipts. The couriers then brought the cash to other members of the conspiracy, who sent the victims’ money to the Dominican Republic.
- The U.S. Attorney’s Office for the Eastern District of Missouri charged three men for their roles in allegedly collecting and transmitting funds from victims of a nationwide tech support fraud scam targeting the elderly. According to charges, one of the defendants recruited college students to act as couriers to collect payments from victims around the country and to fraudulently open bank accounts into which the proceeds of the scam would be deposited. The other two defendants allegedly provided the couriers with assignments, instructions, and payment. The defendants deposited about $7 million in cashier’s checks into one bank account between March 2020 and July 2023.
“The Justice Department is committed to using every tool at our disposal to protect Americans from fraud,” said Acting Associate Attorney General Benjamin C. Mizer. “By working with our federal partners to disrupt money mule networks, educate consumers about scams, and prosecute criminals, we can keep money out of the hands of international fraudsters and in the pockets of hard-working Americans.”
Additionally, participating agencies served approximately 2,970 letters warning individuals that their actions were facilitating fraud schemes. Many money mules begin as victims of romance or lottery scams and are unknowingly lured by fraudsters into transmitting fraud proceeds based on lies. Other money mules are recruited into what they initially believe to be legitimate work-at-home jobs. In order to educate and deter these types of unknowing money mules, the letters served by law enforcement warned individuals that their activities are facilitating fraud and outlined the potential consequences of continuing to transmit illegally acquired funds.
This year’s effort was coordinated by the Justice Department’s Consumer Protection Branch, FBI, and USPIS. Other participating agencies were the Department of Labor Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and IRS Criminal Investigation (IRS-CI).
“The FBI and its partners will relentlessly pursue individuals looking to illegally move funds for illicit purposes,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “Our work of protecting the American people includes prosecuting individuals and networks who knowingly facilitate fraud schemes, while educating consumers and unwitting participants on the dangers of illicit money mule networks.”
“The dismantling of these criminal networks should send a strong message that the U.S. Postal Inspection Service, along with our partners, is committed to taking down these criminal networks designed to inflict financial harm, oftentimes to our most vulnerable population, older Americans,” said Inspector in Charge Eric Shen of USPIS. “The Inspection Service will continue to participate in public education efforts, while remaining committed to enforcing the laws that bring money mules and their international puppeteers to justice.”
As in past years, participating agencies are also working to raise public awareness about how fraudsters recruit and use individuals to assist their fraud operations. IRS-CI implemented a public awareness campaign to warn taxpayers about the ways in which fraudsters recruit money mules. Additionally, the Justice Department and USPIS partnered with the American Banking Association Foundation to present a webinar to banks regarding money mules and the role banks can play in identifying and stopping them.
The agencies involved in this effort urge consumers to be on the lookout for signs someone is trying to recruit them to receive and transmit fraud proceeds. Do not agree to receive money or checks mailed to you or sent to your bank account for someone you have met over the phone or online. Do not open a bank or cryptocurrency account at someone else’s direction. Fraudsters will lie to persuade you to help them. They may falsely tell you that they are helping you get a lottery prize, initiate a purported romantic relationship and then tell you that they need money, or pretend to offer you a job, an opportunity to invest in a business venture, or the chance to help in a charitable effort.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available. The Federal Trade Commission also provides a hotline at 877-FTC-HELP and a website at www.ftccomplaintassistant.gov to receive consumer complaints.
More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. The Justice Department provides information about a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which are available at www.ovc.gov.
Repeat Sex Offender Sentenced to 40 YearsRead the Press Release
CHARLOTTE, N.C. – Roland Vance Watson, 55, of Hickory, N.C., was sentenced today to 40 years in prison followed by a lifetime of supervised release for producing child pornography and committing a felony involving a minor while being required to register as a sex offender, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Watson was also ordered to serve a lifetime of supervised release and will be required to register as a sex offender after he is released from prison.
Kyle Burns, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Reed Baer of the Hickory Police Department join U.S. Attorney King in making today’s announcement.
The criminal investigation began in January 2023, after law enforcement received information from a concerned adult that Watson had exchanged inappropriate text messages with a minor female. According to filed court documents and today’s sentencing hearing, investigators determined that, between August 2021 and February 2023, Watson had sexually abused three minor females on multiple occasions. Three cell phones seized from Watson and Watson’s home were forensically analyzed and multiple sexually explicit text messages were recovered between Watson and one of the minors. In some of the texts, Watson induced the minor to send him explicit images and videos of herself in exchange for gifts and candy. The phones also contained child pornography produced by Watson that depicted Watson sexually abusing the minors and other sexually explicit images and videos featuring the minors in various states of undress.
According to court records, in 1991, Watson was sentenced to five years in prison for sexually assaulting a 15-year-old girl in New Jersey. As part of Watson’s sentence, he was ordered to register with the Sex Offender Registry Board in any state or jurisdiction where he worked or resided. Court documents show that after Watson moved to North Carolina, he failed to register as a sex offender.
Watson will remain in federal custody pending placement by the Federal Bureau of Prisons.
The investigation was conducted by HSI and the Hickory Police Department.
Assistant U.S. Attorney Daniel Cervantes, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. 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.
Six Alleged MS-13 Members Indicted on Racketeering ChargesRead the Press Release
CHARLOTTE, N.C. – Six alleged members of the La Mara Salvartrucha, or MS-13 gang, have been charged with racketeering charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Two of the defendants are charged with murder in aid of racketeering. The indictment was returned by a federal grand jury on April 16, 2024, and was unsealed this morning.
Kyle Burns, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney King in making today’s announcement.
The four individuals charged with racketeering (RICO) conspiracy are Fredy Mauricio Buruca, aka “Piranha,” “Machete,” and “Insoportable,” 26, of Salisbury, N.C.; Santos Guillermo Ramirez Mancia, aka “Azazel,” “Timido,” and “Johnny,” 32, of Annapolis, Maryland; Juan Francisco Sanchez Estrada, aka “Nene” and “Turbo,” 30, of Salisbury; and Luis Fernando Guardardo Moreno, aka “Fantasma” and “Scrappy,” 26, of El Salvador.
The two individuals charged with murder in aid of racketeering activity are Christian Alejandro Garcia Santa Cruz, aka “Crimen,” 31, and Aderly Jose Veliz-Ronquillo, aka “Chanchin,” 30, both of Annapolis.
Ramirez Mancia is also charged with accessory after the fact to murder in aid of racketeering.
“Street gangs threaten the well-being of our communities and spread violence, fear, and intimidation,” said U.S. Attorney King. “Our coordinated law enforcement efforts prioritize the investigation and prosecution of dangerous gangs to dismantle their operations and disrupt their criminal activities.”
“Finding, arresting and prosecuting those involved in gang activity greatly increases public safety and makes a dramatic impact in our communities,” said Acting Special Agent in Charge Burns. “Cases like this reflect that great work that we and our law enforcement partners do to protect the homeland.”
“Violent gangs including MS-13 can wreak havoc in our communities. The FBI is committed to working with our local, state, and federal partners to target and dismantle gangs that threaten the safety and stability of our neighborhoods,” said Special Agent in Charge DeWitt.
According to allegations in the indictment, the defendants were leaders and members of the MS-13 sub-unit, or clique, known as the Hollywood Locos Salvadorians Clique (the HLS clique), which operated in and around the Western District of North Carolina and other areas in North Carolina, Virginia, Maryland, Washington, D.C., and elsewhere. From at least December 2018 and continuing through November 2022, as members of the HLS clique, the defendants allegedly were engaged in a pattern of racketeering activity that consisted of multiple acts and threats involving murder, kidnapping, extortion, robbery, and drug trafficking.
The investigation into the gang’s criminal activity revealed that these criminal acts were allegedly sanctioned by MS-13 leadership and were committed to promote a climate a fear and intimidation within the gang, to maintain the gang’s control and to expand its territory, to enforce discipline within the gang and punish any acts of disrespect, to intimidate witnesses and discourage cooperation with law enforcement, and to retaliate against rivals, or “chavalas.”
Participation in criminal activity was also intended to increase respect and ranking of members within the gang and to open the door to promotion to a leadership position. The indictment alleges that on November 6, 2022, Santa Cruz and Veliz-Ronquillo committed murder in aid of racketeering against a victim identified as W.G.M., for the purpose of gaining entrance to and maintaining and increasing position in the MS-13 enterprise. Santa Cruz and Veliz-Ronquillo allegedly used and carried a firearm during and in relation to W.G.M.’s murder. Later, Mancia allegedly assisted Santa Cruz and Veliz-Ronquillo in order to hinder or prevent their apprehension for murder.
Santa Cruz and Veliz-Ronquillo had their initial court appearances, and they are in federal custody. The remaining defendants are in local custody on state offenses and will be scheduled to appear on the federal charges before a U.S. Magistrate Judge in Charlotte.
The charges contained in the indictment are allegations. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney King commended the FBI, HSI, and the Charlotte Mecklenburg Police Department for their investigation of the case, and thanked the Davidson County Sheriff’s Office, the Kannapolis Police Department, the Monroe Police Department, the Prince William County (Virginia) Sheriff’s Office, and the Annapolis (Maryland) Police Department for their invaluable assistance.
Assistant U.S. Attorneys Erik Lindahl and David Kelly of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
Attorney General Merrick Garland Visits the Western District of North CarolinaRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King was honored to host U.S. Attorney General Merrick Garland for a visit to the U.S. Attorney’s Office in the Western District of North Carolina (WDNC). AG Garland was accompanied by Deputy Attorney General Lisa Monaco.
Earlier today, AG Garland delivered remarks at the memorial service for slain Deputy U.S. Marshal Thomas M. “Tommy” Weeks Jr., who was fatally shot by a wanted fugitive on April 29.
During their visit to WDNC, AG Garland and Deputy AG Monaco met with U.S. Attorney King, her leadership team, as well as prosecutors and professional staff of the U.S. Attorney’s Office. In his remarks to the Office, AG Garland discussed Department of Justice priorities, and thanked everyone for their service, dedication and hard work to uphold the rule of law, protect civil rights, and enhance public safety. AG Garland and Deputy AG Monaco fielded questions from the Office about efforts to support Assistant U.S. Attorneys and personnel to pursue significant cases for prosecution and address public safety challenges
“I was incredibly honored to host AG Garland and Deputy AG Monaco,” said U.S. Attorney King. “The last few days have been incredibly difficult for our Office and we all welcomed AG Garland’s words of support and encouragement. As public servants, we remain steadfast in our mission to protect those we serve and advance the cause of justice for communities across the Western District of North Carolina.”
For more information about the U.S. Attorney’s Office, and important programs and initiatives please visit: https://www.justice.gov/usao-wdnc.
U.S. Attorney's Office Commemorates Missing or Murdered Indigenous Persons Awareness DayRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King and the U.S. Attorney’s Office join the Department of Justice, partners across the federal government, and people throughout American Indian and Alaska Native communities in recognizing May 5 as National Missing or Murdered Indigenous Persons (MMIP) Awareness Day.
“There is still so much more to do in the face of persistently high levels of violence that Tribal communities have endured for generations, and that women and girls, particularly, have endured,” said Attorney General Merrick B. Garland. “In carrying out our work, we seek to honor those who are still missing, those who were stolen from their communities, and their loved ones who are left with unimaginable pain. Tribal communities deserve safety, and they deserve justice. This day challenges all of us at the Justice Department to double down on our efforts, and to be true partners with Tribal communities as we seek to end this crisis.”
“Missing or Murdered Indigenous Persons Awareness Day is a time to stand with our Tribal communities in honoring and remembering the loved ones who were lost to violence or remain missing,” said U.S. Attorney King. “It is also a moment to reaffirm our commitment to continue to collaborate with our Tribal partners to enhance public safety, address the root causes of violence that disproportionately harm Tribal communities, and support crime victims, survivors, and their families.”
In recognition of MMIP Awareness Day, Attorney General Merrick B. Garland highlighted the Justice Department’s ongoing efforts to tackle the MMIP and trafficking crises in American Indian and Alaska Native communities, and other pressing public safety challenges, like the fentanyl crisis, in Tribal communities.
To commemorate MMIP Awareness Day, U.S. Attorney’s Office personnel will participate in the 5th Annual Walk and Vigil for Missing and Murdered Indigenous Relatives on Sunday, May 5, at Oconaluftee Island Park, in Cherokee.
For additional information about the Department of Justice’s efforts to address the MMIP crisis, please visit the Missing or Murdered Indigenous Persons section of the Tribal Safety and Justice website. Click here for more information about reporting or identifying missing persons.
Major Methamphetamine Trafficker in Burke County Is Sentenced to 25 Years in PrisonRead the Press Release
ASHEVILLE, N.C. – A major drug trafficker responsible for distributing large quantities of methamphetamine in and around Burke County was sentenced to 25 years in prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Gregory Travis Gowan, 53, of Morganton, N.C., was ordered to serve five years under court supervision upon completion of his prison sentence.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Sheriff Banks Hinceman of the Burke County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to today’s sentencing hearing and documents filed with the court, in February 2022, law enforcement investigating Gowan’s drug trafficking activities executed search warrants at Gowan’s residence and vehicle in Burke County. Law enforcement seized over $100,000 from Gowan’s residence and vehicle, as well as a quantity of methamphetamine, and items consistent with drug distribution. Subsequently, law enforcement executed additional search warrants at Gowan’s garage and residence, and more drugs and cash were seized. Over the course of the investigation, law enforcement determined that Gowan was responsible for trafficking more than 60 kilograms of methamphetamine in Burke County and was a major source of supply for local dealers.
On August 21, 2024, Gowan pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and two counts of possession with intent to distribute methamphetamine. Gowan is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the DEA and the Burke County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville prosecuted the case.
Georgia Methamphetamine Trafficker Is Sentenced to More Than 15 Years in PrisonRead the Press Release
ASHEVILLE, N.C. – Larry Edward Wood, 62, of Mount Airy, Georgia, was sentenced to 188 months in prison today for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Wood was also ordered to serve five years under court supervision after he is released from prison.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, Sheriff Doug Farmer of the Jackson County Sheriff’s Office, Sheriff Curtis Cochran of the Swain County Sheriff’s Office, and Chief Devin Holland of the Franklin Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, law enforcement initiated an investigation into Wood, a Georgia resident, for suspected methamphetamine trafficking in and around Macon County. In May 2021, a confidential source working with law enforcement purchased methamphetamine from Wood. In July 2021, Wood traveled to Macon County and delivered five kilograms of methamphetamine that was seized by law enforcement.
On July 28, 2023, Wood pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. Wood remains in the custody of the United States Marshals Service pending placement by the Federal Bureau of Prisons.
In making today’s announcement, U.S. Attorney King thanked the DEA, the Jackson County Sheriff’s Office, Swain County Sheriff’s Office, and the Franklin Police Department for their investigation of the case.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville prosecuted the case.
Charlotte Man Sentenced to Five Years in Prison for Creating and Using Fake U.S. Passport CardsRead the Press Release
CHARLOTTE, N.C. – On Monday, Calvin Williams, 31, of Charlotte, was sentenced to 60 months in prison followed by two years of supervised release by U.S. District Judge Max O. Cogburn Jr. for creating counterfeit U.S. passport cards and using them to obtain multiple lines of credit, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, Robert Little, Resident Agent in Charge, Greensboro Resident Office, U.S. Department of State’s Diplomatic Security Service (DSS), and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, in from late 2019 until May 2022, Williams forged U.S. passport cards using the personal identifying information (PII) of victims of identity theft. A U.S. passport card is a wallet sized passport that is issued by the U.S. Department of State, serves as proof of U.S. citizenship and identity, and allows for travel to and from certain countries. Court documents show that Williams created the fraudulent passport cards in the names of identity theft victims, substituting the photographs of the victims with his own photograph. Then Williams used the fake passport cards to open multiple lines of credit with various retail and online stores in order to purchase new iPhones and other electronic items. Over the course of the investigation, law enforcement seized over 30 forged passport cards from Williams. Williams continued the fake passport card scheme after he was placed on state probation for convictions involving identity theft and obtaining property by false pretenses.
On April 19, 2023, Williams pleaded guilty to passport forgery. He is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the U.S. Secret Service, the Department of State’s Diplomatic Security Service, and CMPD for their investigation of the case.
Assistant U.S. Attorney Nick J. Miller, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
If you are aware of, or have been a victim of, fraud associated with a U.S. passport or U.S. visa application, please contact [email protected]
U.S. Attorneys for the Western, Middle, and Eastern Districts of North Carolina Host National Crime Victims’ Rights Week CeremonyRead the Press Release
CHARLOTTE, N.C – United States Attorneys Dena J. King, Sandra J. Hairston, and Michael Easley from the Western, Middle, and Eastern Districts of North Carolina, respectively, gathered on Tuesday morning with local and state leaders to promote community engagement in supporting crime survivors and victims.
“National Crime Victims’ Rights Week emphasizes the importance of supporting and advocating for crime victims and survivors within our justice system,” said U.S. Attorney King. “This year’s theme reflects our dedication to individuals whose lives have been affected by crime and underscores our commitment to ensuring their rights are recognized and upheld every step of the way. When we put victim advocacy at the forefront of our efforts, we ensure that crime victims and survivors have access to the care, support, and resources they need throughout their journey toward healing and justice.”
“Each year, we honor and pay tribute to the victims of crime, to those who are survivors of crime, and to the courageous families who love them,” said U.S. Attorney Hairston. “We take this time to thank the outstanding victims’ advocates and law enforcement professionals who are dedicated to supporting survivors and seeking justice for all victims. We will continue this work throughout the year and in years to come to seek justice for the victims and to give hope to the survivors and their families.”
“In the face of gun violence and an opioid epidemic claiming far too many lives, we won’t allow our communities to be defined by grief and loss,” said U.S. Attorney Easley. “In National Crime Victims’ Rights Week, we highlight the brave victims, survivors, and service providers seeking justice in our courts. We also recognize that true healing requires services and care, wrapping up survivors and ensuring they and their loved ones are never forgotten.”
News reporter Debra Morgan of WRAL emceed the event, which featured music by The 100 Men in Black Ensemble, and an array of speakers delivering messages of hope to victims of crime. Students from Southeast Raleigh Magnet High School were also recognized for their participation in a poster contest featuring butterflies in honor of National Crime Victims’ Rights Week. Two service organizations were also featured, including Safe Child and Ship Outreach, for their role in helping survivors of crime.
The U.S. Attorneys Offices for the Western, Middle, and Eastern Districts of North Carolina are proud to join the Office for Victims of Crime (OVC) and communities throughout the United States during National Crime Victims’ Rights Week in raising awareness of victims’ rights and honoring crime victims and their advocates.
For more information about how to support all victims of crime, visit OVC’s website at ovc.ojp.gov.
Tax Attorneys and Insurance Agent Convicted in Tax Shelter SchemeRead the Press Release
STATESVILLE, N.C. – A federal jury in Charlotte has found two tax attorneys and an insurance agent guilty of conspiring to defraud the United States and helping clients file false tax returns based on their promotion and operation of a fraudulent tax shelter, said Dena J. King, U.S. Attorney for the Western District of North Carolina.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Charlotte Field Office (IRS CI), join U.S. Attorney Dena J. King of the Western District of North Carolina made the announcement.
“Tax fraud is not just a crime against the government,” said U.S. Attorney King. “It’s a betrayal of trust to every honest taxpayer. Today’s guilty verdict sends a clear message that we will not tolerate tax fraudsters who promote and operate fraudulent tax schemes. Their conduct compromises the integrity of our tax system and burdens the rest of us with the weight of their deceit.”
“The defendants’ use of tax schemes was clearly intended to conceal income from the IRS,” said Special Agent in Charge Eakins. “Today’s verdict reinforces our commitment to every American taxpayer that IRS CI special agents will continue to identify and help bring to prosecution those who promote illegal schemes designed to evade the payment of taxes.”
According to court documents and evidence presented at trial, from 2011 to November 2022, Michael Elliott Kohn and Catherine Elizabeth Chollet, both attorneys and residents of St. Louis, Missouri, and David Shane Simmons, a licensed insurance agent and broker based out of Jefferson, North Carolina, promoted, marketed, and sold to clients a fraudulent tax scheme known as the Gain Elimination Plan.
The defendants designed the Plan to conceal their clients’ income from the IRS by inflating business expenses through fictitious royalties and management fees. These fictitious fees were paid, on paper, to a limited partnership largely owned by a charity. In reality, Kohn and Chollet fabricated the fees.
Kohn and Chollet advised clients that the Plan’s limited partnership was required to obtain insurance on the life of the clients to cover the income that was allocated to the charitable organization. The death benefit was directly tied to the anticipated profitability of the clients’ businesses and how much of the clients’ taxable income was intended to be sheltered.
Simmons earned more than $2.3 million in commissions from selling the insurance policies, splitting the commissions with Kohn and Chollet. Kohn and Chollet received more than $1 million from Simmons. Simmons also filed false personal tax returns that underreported his business income and inflated his business expenses, resulting in a tax loss of more than $480,000.
In total, the defendants caused a tax loss to the IRS of more than $4 million.
A sentencing date has not been set. They face a maximum penalty of five years in prison for the conspiracy charge and a maximum penalty of three years in prison for each charge of aiding and assisting in the preparation of false tax returns. Simmons also faces a maximum sentence of three years in prison for each count of filing false personal tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS Criminal Investigation is investigating the case.
Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte and Trial Attorneys Kevin Schneider and Todd Ellinwood of the Tax Division are prosecuting the case.
Registered Sex Offender Is Sentenced to 31+ Years in Prison for Traveling to South Carolina to Engage in Sexual Activity with A MinorRead the Press Release
ASHEVILLE, N.C. – Today, Michael John Worley, 51, of Canton, N.C., was sentenced to 382 months in prison for traveling to Fort Mill, South Carolina, to engage in illicit sexual conduct with a minor while being a registered sex offender, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also ordered Worley to remain under court supervision for the rest of his life and to register as a sex offender after he completes his prison sentence.
Kyle Burns, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Sheriff Kevin Tolson of the York County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, in 2017, Worley was sentenced to 60 months in prison after pleading guilty to possession of child pornography in federal court in the Western District of North Carolina. As part of Worley’s judgement, he was ordered to a lifetime term of supervised release and to register as a sex offender. Court documents show that in March 2021, the York County Sheriff’s Office began an undercover operation to identify online child predators using social media and other messaging applications to contact minors. On March 12, 2021, Worley began communicating online with undercover sheriff deputies posing as a 15-year-old minor female. During their communications, Worley expressed his interest in engaging in illicit sexual acts with the underage female, knowing that the female he thought he was communicating with was a minor. Worley also referenced his prior federal conviction and said that he was not supposed to be talking to a minor, that he had been in trouble in the past, and that he did not want to get in trouble again. On March 27, 2021, Worley traveled from Haywood County in North Carolina to Fort Mill, for the purpose of engaging in sexual acts with the minor. When Worley arrived at the residence in Fort Mill where he thought he was meeting the minor, he was arrested by the York County Sheriff’s Office.
“We are committed to actively investigating and prosecuting repeat predators like Worley to combat child exploitation and ensure the safety of our vulnerable young people,” said U.S. Attorney King. “Ensuring the safety of our children is paramount, and I commend Homeland Security Investigations and the York County Sheriff’s Office for their swift action in this case. Thanks to their work, children are protected from this dangerous individual.”
“We all can breathe a little easier knowing that a predator like Worley, who delights in the abuse and exploitation of children, is not roaming around our communities looking to victimize our children,” said Acting Special Agent in Charge Burns Kyle Burns. “I am thankful for the great work done on this case and the amazing support of our law enforcement partners.”
“Let this send a strong message to any child predator, if you hunt our children, you will become the hunted,” said Sheriff Tolson.
On March 3, 2023, Worley pleaded guilty to attempting to use a minor to engage in sexually explicit conduct for the purpose of producing child pornography. Worley is in federal custody and will be transferred to the custody of the U.S. Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King credited HSI and the York County Sheriff’s Office with the investigation that led to today’s sentence.
Assistant U.S. Attorney Alexis Solheim of the U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney's Office Observes National Crime Victims' Rights WeekRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King and the U.S. Attorney’s Office for the Western District of North Carolina join the Justice Department, law enforcement agencies, service providers, allied professionals and communities nationwide to commemorate National Crime Victims’ Rights Week (NCVRW) from April 21-27, 2024.
This year’s NCVRW theme is, “How would you help? Options, services, and hope for crime survivors.” The theme emphasizes the importance of creating an environment in which victims and survivors feel safe and supported to share their experience and trauma. The theme also aims to ensure that everyone in the community knows and understands where and how crime victims and survivors can find and receive help.
“A crucial aspect of our justice system is supporting and advocating for crime victims and survivors. And that begins by asking an important question: ‘How can we help?’” said U.S. Attorney King. “This year’s NCVRW theme reflects our commitment to crime victims and survivors. This is a commitment that extends beyond legal proceedings and holding offenders accountable. It is a commitment that ensures crime victims’ rights are represented with diligence and sensitivity, and that victims and survivors receive the care, support, and resources they need every step of the way.”
In 2022, there were nearly 20 million crime victimizations in the United States. More than 6.6 million were the result of violent crimes, including rape or sexual assault, robbery, aggravated assault, and simple assault. Of that 6.6 million, only about 42% were reported to police.
This week, the U.S. Attorney’s Office in the Western District of North Carolina will join the U.S. Attorney’s Offices in the Eastern and Middle Districts of North Carolina to commemorate NCVRW by hosting events that encourage everyone – including friends, family members, colleagues, neighbors, service providers, and other trusted members of the community – to learn more about how they can assist, support, and empower survivors.
Throughout the nation and in the Western District of North Carolina, victim advocacy organizations, community groups, and state, local, and Tribal agencies will host rallies, candlelight vigils, and other events during NCVRW, to raise awareness of victims’ rights and services.
The Justice Department’s Office for Victims of Crime (OVC) leads communities in their annual observances of NCVRW. On Wednesday, April 24, 2024, a candlelight vigil will be held on the National Mall from 7:00 p.m. to 8:00 p.m. eastern time, to pay tribute to victims of crime and the many dedicated professionals and volunteers who advocate on their behalf.
For more information about how to support all victims of crime, visit OVC’s website at ovc.ojp.gov.
Additional information about the U.S. Attorney’s Office Victim/Witness Assistance Program can be found here.
Jackson County Man on Federal Supervised Release Is Sentenced to 10+ Years in Prison on Drug and Gun ChargesRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced John Allen Wise, 45, of Cashiers, N.C., to 121 months in prison followed by five years of supervised release for distribution of methamphetamine and illegal possession of firearms, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Sheriff Doug Farmer of the Jackson County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to court documents, Wise was on court-ordered supervised release after serving a term of imprisonment on a federal drug conviction. On August 5, 2022, law enforcement with the U.S. Probation Office and the Jackson County Sheriff’s Office arrived at Wise’s residence to arrest him on a supervised release violation warrant and to conduct a planned search. Law enforcement encountered Wise sitting on his front porch with a small bag containing methamphetamine and drug paraphernalia. Law enforcement proceeded to search the residence, seizing fentanyl, cocaine, and methamphetamine, digital scales and items consistent with drug distribution, a loaded semiautomatic pistol, and multiple rounds of ammunition. Wise’s criminal conviction prohibits him from possessing firearms and ammunition.
On April 24, 2023, Wise pleaded guilty to possession with intent to distribute methamphetamine, and possession of a firearm by a convicted felon.
Wise is currently in federal custody and will be transferred to the custody of the U.S. Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney King thanked the DEA and the Jackson County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville prosecuted the case.
Convicted Felon Is Sentenced to 19+ Years in Prison for Trafficking Methamphetamine and Illegal Firearms Possession in Burke CountyRead the Press Release
ASHEVILLE, N.C. – Jessie Alan Clark, 42, of Burke County, was sentenced today to 235 months in prison followed by five years of supervised release on drug and gun charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Sheriff Banks Hinceman of the Burke County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, in February 2022, investigators with the Burke County Sheriff’s Office and agents with the DEA determined that Clark was engaged in the distribution of methamphetamine in the area. On February 15, 2022, law enforcement observed a truck attempting to evade detection by law enforcement and began to follow the vehicle. While they followed the vehicle, law enforcement observed a backpack being tossed out of the passenger side of the truck and proceeded to pull over the vehicle. Clark was the driver of the truck, and another individual was a passenger. Over the course of the traffic stop, law enforcement searched Clark, the passenger, the truck, and the backpack that had been tossed from the vehicle, and seized $1,915 in U.S. currency, two gallon-sized bags containing methamphetamine, and a loaded Taurus .38 caliber revolver with six rounds of ammunition. Clark is a convicted felon, and he is prohibited from possessing firearms or ammunition.
On August 21, 2023, Clark pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm by a convicted felon.
Clark will remain in the custody of the U.S. Marshals Service pending transportation to a designated U.S. Bureau of Prisons facility, to serve a non-paroleable sentence of incarceration.
In making today’s announcement U.S. Attorney King thanked the DEA and the Burke County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville prosecuted the case.
Lincolnton, N.C. Woman Charged with Selling Fentanyl That Led to an Overdose DeathRead the Press Release
CHARLOTTE, N.C. – A federal grand jury in Charlotte indicted Madison Dare Winslow, 24, of Lincolnton, N.C., for allegedly selling fentanyl that led to an overdose death, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Kyle Burns, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Tracy Ledford of the Maiden Police Department join U.S. Attorney King in making the announcement.
According to allegations in the indictment, on February 14, 2022, in Catawba County, Winslow did knowingly and intentionally distribute a controlled substance, that being fentanyl, that caused a victim’s overdose death. The indictment also alleges that Winslow distributed fentanyl on April 4, 2022, which is after the date of the victim’s fatal overdose.
Winslow is expected to make her initial appearance in court on Thursday, April 18, 2024. She is charged with one count of distribution of fentanyl resulting in death and one count of possession with intent to distribute fentanyl.
The charges in the indictments are allegations. The defendant is innocent until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King thanked HSI and the Maiden Police Department for their investigation of the case.
Assistant U.S. Attorney Nick J. Miller of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Fentanyl is a synthetic opioid that is 50 times more potent than heroin and remains the deadliest drug threat in the United States. Laboratory testing indicates 7 out of 10 pills seized by Drug Enforcement Administration (DEA) contain a lethal dose of fentanyl. According to the DEA, in 2023, the agency seized more than 79.5 million fentanyl-laced fake pills and nearly 12,000 pounds of fentanyl powder. That’s equivalent to more than 376.7 million lethal doses of fentanyl - enough to kill every American across the country. So far this year, the 2024 fentanyl seizures represent over 82.6 million deadly doses.
For information and resources related to substance use disorder, please call the Substance Abuse and Mental Health Services Administration helpline at 1-800-662-HELP (4357) or visit the online treatment locator.
U.S. Attorney's Office Secures Agreement with Gastonia Hotel to Ensure Access to People with DisabilitiesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that federal prosecutors have reached a settlement agreement with the owners of the Express Inn and Suites LLC (Express Inn) in Gastonia, N.C. The agreement requires the owners of the Express Inn to provide access and accommodations to customers with disabilities, under the Americans with Disabilities Act (ADA).
The U.S. Attorney’s Office initiated an investigation following a complaint filed with the U.S. Department of Justice, claiming that the Express Inn violated the ADA by refusing to provide a room to a visually impaired individual based on speculation about the individual’s capabilities.
Under federal law, private entities that own or operate “places of public accommodation,” including hotels and other places of lodging, are prohibited from discriminating on the basis of disability.
The ADA requires that hotels provide access to individuals with disabilities, and a hotel cannot impose or apply eligibility criteria that screen out or tend to screen out an individual with a disability from full and equal enjoyment of any goods, services, or accommodations.
Upon learning of the complaint, the Express Inn cooperated with the investigation and subsequently agreed to remedy its past discriminatory conduct. According to the terms of the agreement, the Express Inn will provide employee training, update its policies, practices, and procedures to comply with the ADA, and provide monetary relief for the impacted individual.
“My office is committed to enforcing the ADA and protecting all civil rights in this District,” said U.S. Attorney King, who also leads the Attorney General’s Advisory Subcommittee on Civil Rights.
“People with disabilities have a right to equal access to hotel accommodations and should not be denied lodging on the basis of disability. I want to thank the customer who brought this matter to our attention, and I am pleased that the Express Inn has entered into an agreement that ensures going forward individuals with disabilities will not be denied their rights under federal law.”
Individuals who believe they have been victims of discrimination may file an ADA complaint online at https://www.ada.gov/file-a-complaint/. Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at 800-514-0301 (voice) or 1-833-610-1264 (TTY).
This matter was handled by Assistant U.S. Attorney (AUSA) Janice Powers of the U.S. Attorney’s Office in Charlotte. AUSA Powers also serves as the U.S. Attorney’s Office’s Civil-Civil Rights Coordinator.
U.S. Attorney Dena J. King Announces Criminal Indictments Resulting from Joint Crime Reduction Efforts Targeting Drug Trafficking and Illegal Firearms Activity in AshevilleRead the Press Release
ASHEVILLE, N.C. – Today, Dena J. King, U.S. Attorney for the Western District of North Carolina, announced criminal indictments against 13 individuals on drug and/or gun charges. The indictments are the result of multiple joint investigations led by federal prosecutors, the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Asheville Police Department, into the alleged distribution of narcotics, such as fentanyl, and illegal firearms activity in the Asheville area.
“When our streets are plagued with drugs and illegal guns, our communities pay the price,” said U.S. Attorney King. “The charges announced today are the result of our concerted efforts with our law enforcement partners to remove drugs and illegal guns from our neighborhoods and reduce the violence and criminal activity fueled by the drug trade. We are stronger together. When we join forces, our crime reduction efforts are more effective and we can better protect our citizens and vulnerable communities from dangerous drugs and gun-induced violence.”
“ATF has a shared commitment with our law enforcement partners to address violent crime relentlessly and from every angle,” said ATF Special Agent in Charge Bennie Mims. “By removing firearms from illegal possessors and shutting down firearms and drug trafficking networks, we’re breaking the cycle of violent crime and making our communities safer.”
“The Asheville Police Department values its local, state, and federal partnerships. This collaboration has made Western North Carolina safer from the destructive influence of those who exploit addiction, and the tragedies caused by gun-related violence. We will continue to work together as a team to foster safer neighborhoods for all residents and visitors.”
The names of the 13 individuals and the offenses pending against them are:
Darrien Quantael Cannady, 35, of Asheville, is charged with three counts of distribution of a controlled substance containing a detectable amount of cocaine base. The alleged conduct occurred between August 2022 and November 2022, in Buncombe County.
Aric Rashad Harper, 30, of Swannanoa, N.C., is charged with possession of machineguns and possession of a firearm by a convicted felon. The indictment alleges that, in November 2022, in Buncombe County, Harper possessed two machinegun conversion kits, commonly known as “Glock switches.” A Glock switch, or “auto sear,” is an illegal conversion device that enables a conventional semi-automatic pistol to function as a fully automatic firearm.The indictment further alleges that, during that time, Harper unlawfully possessed a pistol, knowing that he had been previously convicted of at least one crime punishable by imprisonment for a term exceeding one year.
Eric Kelvin Hart, 42, of Asheville, is charged with distribution of methamphetamine. The indictment alleges that Hart distributed the methamphetamine in September 2022, in Buncombe County.
Valachie Wendell Hendon, 41, of Asheville, is charged with four counts of distribution of fentanyl, one count of distribution of fentanyl and methamphetamine, two counts of possession of a firearm in furtherance of a drug trafficking crime, and three counts of possession of a firearm by a felon. The indictment alleges that, between April and May 2023, Hendon engaged in the distribution of fentanyl in and around Buncombe County and illegally possessed firearms. The investigation led to the recovery of two privately manufactured firearms (ghost guns), eight firearms, including an AR-type rifle and a 12-gauge shotgun, and more than 80 rounds of ammunition, that the government contends were involved in the offenses charged in the indictment and are subject to forfeiture proceedings.
Jamal Marqui McDaniel, 46, of Asheville, is charged with one count of conspiracy to distribute and to possess with intent to distribute methamphetamine; nine counts distribution of methamphetamine; one count of possession with intent to distribute fentanyl and methamphetamine; eight counts of possession of a firearm in furtherance of a drug trafficking crime; and six counts of possession of a firearm and/or ammunition by a felon. The indictment alleges that, between September 2022 and February 2023, McDaniel engaged in the distribution of fentanyl and methamphetamine in and around Buncombe County. The indictment alleges that McDaniel, during the relevant period, distributed the controlled substances while in possession of firearms. The investigation led to the recovery of two ghost guns, eight firearms, and ammunition, that the government contends were involved in the offenses charged in the indictment and are subject to forfeiture proceedings. McDaniel’s co-defendant, Glisa Nechole Ponder, 43, is charged with conspiracy to distribute and to possess with intent to distribute methamphetamine and distribution of methamphetamine.
Christopher Deshawn Nelson, 41, of Asheville, is charged with four counts of distribution of methamphetamine and three counts of felon in possession of a firearm. The indictment alleges that, between June 2022 and August 2022, Nelson allegedly distributed methamphetamine in Buncombe County and elsewhere and illegally possessed three firearms on three separate occasions. Nelson was previously convicted of at least one crime punishable by imprisonment for a term exceeding one year and he is prohibited from possessing firearms.
Dequan Tyrie Payton, 33, of Arden, N.C., is charged with distribution of fentanyl and three counts of distribution of methamphetamine. The indictment alleges that Payton distributed the controlled substances between September 2022 and November 2022, in and around Buncombe County.
Ronald Lee Peak, 43, of Hendersonville, N.C., is charged with two counts of distribution of methamphetamine and two counts of possession of a firearm by a felon. The indictment alleges that between July 2022 and August 2022, Peak possessed with intent to distribute methamphetamine in Buncombe County. It is also alleged that, during that time, Peak illegally possessed two firearms knowing that he had previously been convicted of at least one crime punishable by imprisonment for a term exceeding one year.
Breanna Nicole Reed, 27, of Asheville, is charged with three counts of distribution of fentanyl. Reed allegedly engaged in the distribution of fentanyl between June 2022 and August 2022, in Buncombe County.
Tyrone Eugene Sitton, 46, of Asheville, is charged with three counts of distribution of fentanyl, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of possession of a firearm by a felon. According to allegations in the indictment, between November 2022 and December 2022, Sitton distributed fentanyl in Buncombe County. The indictment further alleges that Sitton, knowing he had been previously convicted of at least one crime punishable by imprisonment for a term exceeding one year, knowingly and unlawfully possessed three firearms, including a 12-gauge shotgun and a rifle. The indictment also charges Sitton’s co-defendant, Maurice Antonio Jeter, 42, of Hendersonville, with possession with intent to distribute fentanyl.
Khalil Tirik Shabazz, 28, of Asheville, is charged with three counts of knowingly and intentionally distributing a mixture and substance containing a detectable amount of cocaine, a Schedule II controlled substance. The indictment alleges that Shabazz distributed the controlled substance in July 2022, in and around Buncombe County.
The charges in the indictments are allegations. The defendants are innocent until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King commended the ATF and the Asheville Police Department for conducting the investigations that led to the federal charges.
Assistant U.S. Attorneys with the U.S. Attorney’s Office in Asheville are prosecuting the cases, including Christopher Hess, Alex M. Scott, and Special Assistant U.S. Attorney Annabelle Chambers.
The cases 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 gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
In July 2022, as part of PSN, the U.S. Attorney’s Office, in partnership with the ATF, launched Think Again, an informational campaign to educate the public about gun crimes and illegal firearms purchasing or misuse and to increase the reporting of illegal firearms activity to law enforcement. The campaign encourages the public to submit an anonymous tip about illegal firearms and other criminal activity to the ATF by calling 1-888-ATF-TIPS (1-888-283-8477), via text at 63975, or online at WWW.ATF.GOV/ATF-TIPS.
For additional information about our Think Again initiative, please visit our website. You can view our Think Again Public Service Announcements here.
On Tax Day , U.S. Attorney's Office Heeds Warning About IRS Imposter Scams and Other Financial Schemes Targeting Older AdultsRead the Press Release
CHARLOTTE, N.C. – On Tax Day, the U.S. Attorney’s Office heeds a warning against IRS imposter scams and other emerging and existing financial fraud schemes that target unsuspecting Americans, especially older adults. These scams often result in substantial monetary losses, causing financial hardship and emotional distress to individuals impacted by the fraud.
As part of the U.S. Attorney’s Office’s ongoing efforts to warn the public about financial fraud, and specifically fraud targeting older adults, federal prosecutors hosted a game of “Fraud Bingo” today at the Tyvola Senior Center in Charlotte, to educate older adults, caregivers, and individuals who regularly work or interface with older populations about financial predators and scams targeting the elderly.
“On Tax Day, and as we head into the summer months, we want everyone to be vigilant about online scams and cyberthreats, particularly those that target older adults,” said U.S. Attorney King. “From scammers posing as IRS agents to fake timeshare schemes, our best defense against fraud is education. Fraud Bingo is an interactive tool we use to alert older adults of the means and methods scammers employ to perpetrate fraud, and what steps they can take to protect themselves. Through our outreach efforts, we also want to remove the stigma and embarrassment often associated with financial fraud and encourage the reporting of fraud. Alerting the authorities that you have been the victim of a scam can assist with initiating investigations, bringing criminals to justice, and recovering stolen funds. It also helps us keep track of trends, identify emerging schemes, and warn others.”
According to the FBI’s 2023 Internet Crimes Report, the agency’s Internet Crime Complaint Center (IC3) received a record number of complaints from the American public with potential financial losses exceeding $12.5 billion, a 22% increase compared to 2022. The report also indicates that North Carolina is ranked 13th both in the number of complaints filed with the FBI and in financial losses sustained due to online schemes and financial fraud. Individuals 60 and above filed the most complaints (101,068) and sustained $3.4 billion in losses, the highest among all groups. The report further indicates that tech support scams continue to impact older adults disproportionately, accounting for half of all the financial losses of online schemes. In addition, government impersonation, phishing, romance scams, and non-delivery schemes continue to cost millions in losses for the 60+ population.
Scams Targeting Older Adults
Last month, the Social Security Administration (SSA) Office of the Inspector General (OIG) issued a warning indicating alarming reports of fraudsters impersonating SSA OIG agents. In this latest iteration of government imposter scams, fraudsters request victims to meet them in person to hand off cash. Variations of the scam include fraudsters posing as IRS agents demanding money for unpaid taxes, as sheriff’s office deputies threatening arrest for purported outstanding fines, and as prosecutors or court personnel threatening with prosecution or jail time for failing to comply with jury duty service.
Additional examples of financial fraud targeting older Americans are:
- Tech Support Scams – Convince victims to pay for non-existent problems with their computers.
- Non-Delivery Scams – Induce victims to pay for goods or services online, but never receive them. A variation of this scheme is victims receiving emails or texts messages that appear to be from legitimate shipping companies (e.g., UPS, FedEx) with fake non-delivery notifications, claiming that payment or additional personal information is required to complete a package delivery.
- Romance Scams – Lull victims into believing they are in an online romantic relationship and their paramour needs money to pay for a visit to the U.S. or for some other purpose.
- Grandparent Scams – Dupe victims into thinking that their grandchildren or other relatives are in trouble and need money right away for bail or another emergency.
- Charity Scams – Solicit donations for fake charities, or by altering or “spoofing” caller IDs to show the name of a real charity on the phone.
- Lottery Scams – Scammers use phone calls, letters, or emails to convince victims that a large fee or taxes must be paid before they can receive lottery winnings.
- Debt Collection Scams – Victims are threatened with arrest and jail time if payment for a fake debt is not made immediately.
- Money Mule/Money Laundering Scams – Convince victims to use their existing or new bank accounts to quickly move funds in and out of those accounts. Generally, the transferred funds are proceeds of other criminal schemes (such as romance schemes) and victims are unwittingly being used to launder the ill-gotten funds.
- Timeshare Scams – Fraudsters target timeshare owners with false promises of resale and exit from their timeshares for a fee.
- Sham Business Opportunities – Convince victims to invest in lucrative business opportunities or fake investments.
Here are some tips on how to avoid falling victim to a financial scam:
- Don’t share personal or financial information with anyone you don’t know.
- If the person asking the information claims to be a relative, a friend, someone you know, or a representative of a financial institution or government agency do not respond right away. Instead, contact the person/entity independently or ask a trusted family member or friend for help.
- Don’t pay a fee for a prize or lottery winning.
- Don’t click on pop-up ads, messages, or virus warnings.
- 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 or someone who claims to be a relative without verifying the person’s identity.
- Don’t fall for a high-pressure sales pitch or lucrative business deals.
- If you suspect fraud, take the time to talk to a trusted friend or family member.
- It’s not rude to say, “NO.”
- Keep in mind that if you send money once, you’ll be a target for life.
- A good rule of thumb is, if it’s too good to be true, it’s likely a scam.
- And remember, there is no shame in falling prey to an online scammer. These are professional criminals that use tried-and-true tactics to perpetrate fraud.
To report elder fraud please call the Justice Department’s Elder Fraud Hotline at 1-833-FRAUD-11 (833-372-8311). If you believe you are the victim of a scam or have been contacted by a scammer, file a report with the FBI’s Internet Crime Complaint Center at IC3.gov or contact local law enforcement.