Western District of North Carolina
Press releases recorded for this federal judicial district.
Convicted Felon Is Sentenced to Prison for Firearms Offense, Assaulting Federal Officers, and Assault with Intent to Commit MurderRead the Press Release
ASHEVILLE, N.C. – Martin Medina, 32, an enrolled member of the Eastern Band of Cherokee Indians, has been sentenced to 14 years in federal prison and three years of supervised release for a firearms offense, assaulting federal officers, and assault with intent to commit murder, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the sentence imposed for the weapons and assault convictions, Medina was ordered to serve an additional 30 months in prison for violating the terms of his federal supervised release, for a total sentence of more than 16 years.
Medina was convicted of federal charges in 2012 for abusive sexual contact and related offenses. Medina was sentenced to a term of imprisonment followed by a lifetime of supervised release. As a convicted felon, Medina was prohibited from possessing firearms or ammunition. Also, among the conditions of Medina’s supervision were warrantless searches of his person and his residence.
According to court documents and court proceedings, on June 14, 2022, at approximately 1:10 p.m., federal probation officers and a deputy with the Cherokee Indian Police Department (CIPD) arrived at Medina’s residence, located in Swain County within the Qualla Boundary, to conduct a warrantless search. Medina met the law enforcement officers outside, then quickly ran inside his residence. A federal probation officer began to negotiate with Medina to come outside, but Medina did not comply. Officers with Tribal Alcohol Law Enforcement, Tribal Natural Resources Enforcement, and the Bureau of Indian Affairs arrived to assist. Law enforcement continued to negotiate with Medina, and over the course of the negotiations, law enforcement observed shell casings in the driveway. This led officers to believe that Medina was armed even though he was prohibited from possessing firearms.
According to court records, a SWAT team was called to the scene. Law enforcement reported potential gunfire coming from inside the residence. Medina continued to refuse to surrender, even after law enforcement deployed non-lethal gas into the residence. After deploying more gas into the home, law enforcement was again met with gunfire. Medina continued to fire at law enforcement, causing one of the officers to sustain a non-fatal injury. Eventually, Medina agreed to surrender, and he was taken into custody at 5:51 p.m.
Court records show that following Medina’s arrest, officers executed a search warrant at Medina’s residence, seizing five firearms, including three shotguns, assorted ammunition, extended magazines loaded to capacity for all weapons, two ballistic vests, a ballistic helmet, night vision goggles, a gas mask, various fixed-blade knives, suspected marijuana, and several thousand dollars in cash.
Medina remains in federal custody awaiting transfer to the federal Bureau of Prisons upon designation of a facility.
In making today’s announcement, U.S. Attorney King commended the Bureau of Indian Affairs, the Drug Enforcement Administration, the U.S. Probation Office, the Cherokee Indian Police Department, Tribal Alcohol Law Enforcement, Tribal Natural Resources Enforcement, the Office of the Tribal Prosecutor, and the Jackson County Sheriff’s Office for their work on this case.
Assistant U.S. Attorney Alex M. Scott of the U.S. Attorney’s Office in Asheville prosecuted the case.
Two Men Indicted for Laundering Millions of Dollars in Fraud Proceeds and Operating Unlicensed Money Transmitting BusinessRead the Press Release
CHARLOTTE, N.C. – A newly-unsealed criminal indictment filed in U.S. District Court in Charlotte charges Olumide Olorunfunmi, 41, of Arlington, Texas, and Samson Amos, 52, of Burlington, New Jersey, with money laundering conspiracy, conspiracy to operate an unlicensed money transmitting business and concealment money laundering, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. A third defendant, Emmanuel Unuigbe, 41, of Dallas, Texas, previously pleaded guilty for his role in the scheme and is awaiting sentencing.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, joins U.S. Attorney King in making today’s announcement.
According to allegations in the indictment and filed court documents in Unuigbe’s case, from 2020 through 2023, Olorunfunmi and Amos conspired with Unuigbe and others to launder the illegal proceeds of business email compromise schemes (BECs) and online romance scams targeting elderly victims. Victims of these frauds were directed into wiring and otherwise transferring funds into bank accounts controlled by Olorunfunmi, Amos, Unuigbe and their coconspirators, including bank accounts in the name of Topaz Trading & Logistics Inc., Summit Trading & Financial Services Inc., and Stage 23 Konsult LLC. After receiving the fraud proceeds, Olorunfunmi and Amos depleted the bank accounts through multiple withdrawals and transfers into other accounts, including overseas accounts. As alleged in the indictment, the defendants and their coconspirators caused more than 125 third parties to deposit or transfer over $4.5 million of proceeds stemming from illegal activities.
According to allegations in the indictment, Olorunfunmi and Amos profited by, among other things, keeping a percentage of fraudulent proceeds obtained through the schemes. They also allegedly earned compensation by conspiring to operate an unlicensed money transmitting business, through which Olorunfunmi and Amos agreed to, among other things, “pay” for the domestic deposits received by others by transferring Nigerian Naria from accounts the coconspirators controlled in Nigeria to other accounts in Nigeria, based upon a “black market” exchange rate for United States Dollars to Naira.
Amos was released on bond after making his initial appearance in court in Charlotte. Olorunfunmi is scheduled to have his initial appearance in Charlotte on April 25, 2024.
The charges contained in the indictment are allegations and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The charge of money laundering conspiracy carries a maximum sentence of 20 years in prison. The charge of conspiracy to operate an unlicensed money transmitting business has a statutory penalty of up to five years in prison. The concealment money laundering charges each carry a maximum sentence of no more than 20 years in prison.
In making today’s announcement, U.S. Attorney King thanked the FBI for the investigation of the case.
Assistant U.S. Attorney Daniel Ryan with the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
If you believe you were impacted by the charged crimes and/or were asked to send money to Topaz, Summit, or Stage 23, please contact the FBI at 704-672-6100.
Two Defendants Are Sentenced for Stealing Social Security BenefitsRead the Press Release
CHARLOTTE, N.C. – Today, Dena J. King, U.S. Attorney for the Western District of North Carolina, announced that two defendants convicted for theft of Social Security Administration (SSA) benefits in separate cases have been sentenced in federal court.
Henry Lionel Barber, 77, of Charlotte, was sentenced to three years of probation, with eight months of home confinement, for theft of government funds and was ordered to pay restitution in the amount of $140,541 to SSA. According to filed court documents and court proceedings, from 2009 to 2023, Barber stole SSA survivor’s benefits which were paid monthly in the name of a deceased beneficiary. Court records show that Barber converted United States Department of Treasury checks issued to the deceased beneficiary for his own use. Barber later used ATM cards associated with a bank account in the deceased beneficiary’s name where the survivor’s benefits were direct deposited to make cash withdrawals and other unauthorized financial transactions. Barber collected approximately $140,000 in funds administered by the SSA in the form of survivor’s benefits, which he was not entitled to receive. On October 18, 2023, Barber pleaded guilty to theft of government funds.
In a separate case, Ivan Buxton Gay Jr., 81, of Huntersville, N.C., was sentenced to five years of probation, with eight months of home confinement, for theft of government funds and making a false statement on a passport application. Gay was also ordered to pay $142,000 in restitution to SSA. According to court records in this case, as early as 1992, Gay stole the identity of Alvin Vincent Lee, an infant that died in the 1940’s. Gay used Alvin Vincent Lee’s information, including a birth certificate, to fraudulently obtain a North Carolina Driver’s License and a Social Security card under Alvin Vincent Lee’s name. Court records also show that, in 2006, Gay applied for and began to receive retirement benefits and Supplemental Security Income (SSI) from the SSA under Alvin Vincent Lee’s name. In total, Gay collected approximately $142,000 in funds administered by the SSA in the form of retirement benefits and SSI. Then, in 2020, Gay applied for a United States passport using Alvin Vincent Lee’s identity, declaring under penalty of perjury that the statements and information on the application form were true and correct. In support of the passport application, Gay provided false documentation and a photograph of himself attesting that it was a correct and true photograph of Alvin Vincent Lee. On November 6, 2023, Gay pleaded guilty to theft of government funds and making a false statement on a passport application.
“Theft of social security benefits is theft of taxpayer dollars,” said U.S. Attorney King. “My Office’s prosecutions protect the integrity of the SSA programs and ensure that funds are administered to individuals qualified to receive them. I want to thank SSA-OIG for their partnership and for joining forces with my Office to accomplish our shared mission.”
In making today’s announcement, U.S. Attorney King thanked the SSA-OIG for its thorough investigation of both cases, and the U.S. Department of State’s Diplomatic Security Service for its invaluable assistance with Gay’s investigation.
The charges are the result of an ongoing effort by the U.S. Attorney’s Office in the Western District of North Carolina to deter theft of government funds and bring to justice individuals who steal government benefits that millions of Americans rely on.
The cases were prosecuted by Special Assistant U.S. Attorney (SAUSA) Eric Frick. Mr. Frick is a prosecutor with the Social Security Administration and is assigned to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte, in charge of prosecuting SSA fraud cases. The SAUSA position is a reflection of the partnership between the SSA and the U.S. Attorney’s Office.
If you suspect someone of committing fraud, waste, or abuse against Social Security, you can submit a report online at oig.ssa.gov or contact the SSA-OIG’s fraud hotline at 1-800-269-0271.
Online Seller of “Unwashed” Poppy Seeds Is Sentenced for Drug OffenseRead the Press Release
ASHEVILLE, N.C. – Daniel Allen Childers 34, of Asheville, was sentenced today to 27 months in prison followed by a year of supervised release, for a drug offense involving “unwashed” poppy seeds, said Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to court documents and court proceedings, between June 2021 and January 2023, Childers engaged in a conspiracy to distribute unwashed poppy seeds. Unwashed poppy seeds are different from commercially available poppy seeds. Consumers of unwashed poppy seeds generally steep the seeds in hot water, which produces a narcotic “tea” that contains opiates such as morphine, codeine, and thebaine.
Court records show that, in June 2021, Childers contacted a wholesale supplier of unwashed poppy seeds and became a vendor for the seeds. Childers began to sell the seeds online through a website he created for his business, “OrganaSeedSupply LLC” (OrganaSeed). OrganaSeed purported to sell baking goods supplies and services, including poppy seeds for commercial use. Contrary to the website’s claims, Childers exclusively sold unwashed poppy seeds and only listed the other products and services to appear legitimate. Court documents show that Childers obtained pallets of seeds from his supplier, each containing over 1,000 pounds of unwashed poppy seeds. In turn, Childers sold the unwashed poppy seeds online in various size bags, with one pound of seeds costing between $45 and $50. As Childers previously admitted in court documents, Childers knew that his customers would use the poppy seeds to make opiate tea and warned his customers that the seeds contained “opiate alkaloid residue.”
In July 2023, Childers pleaded guilty to conspiracy to distribute a material used to make a controlled substance.
In making today’s announcement, U.S. Attorney King thanked Homeland Security Investigations, the U.S. Postal Inspection Service, and the Asheville Police Department for their investigation of the case.
The case was prosecuted by the U.S. Attorney’s Office in Asheville.
U.S. Attorneys for the Western, Middle, and Eastern Districts of North Carolina and Federal Officials Host Community Conversation on Combatting Sexual Harassment in HousingRead the Press Release
CHARLOTTE, N.C. – Dena J. King, Sandra Hairston, and Michael Easley, United States Attorneys for the Western, Middle, and Eastern Districts of North Carolina, respectively, were joined today by officials with the Justice Department’s Civil Rights Division and the U.S. Department of Housing and Urban Development’s Office of Inspector General (HUD OIG) in hosting a community conversation focused on the use of the Fair Housing Act to prevent and address sexual harassment in HUD-assisted housing.
“Abusing power and control over housing by committing acts of sexual harassment violates a person’s right to equal housing opportunities,” said U.S. Attorney King. “My Office remains steadfast in our commitment to enforce federal civil rights laws to combat sexual harassment in housing, protect vulnerable tenants and housing applicants, and hold accountable landlords, property managers, owners, and others who violate these statutes.”
“Sexual harassment of citizens who are pursuing safe and affordable housing will not be tolerated,” said U.S. Attorney Hairston. “This reprehensible conduct is often inflicted on people who feel they do not have an avenue to seek help. We hope today’s seminar has provided our partner agencies and organizations with information that can be shared with citizens who may have fallen prey to this illegal activity.”
“In our ongoing commitment to ensure justice and safety for all, we are proud to co-host a community conversation with a focus on combating sexual harassment in housing,” said U.S. Attorney Easley. “This event represents a crucial step in our collaborative efforts to create a safe living environment for all people.”
“Sexual harassment and sexual assault in HUD-assisted housing are discriminatory actions that violate tenants’ rights to safe and fair housing,” said Inspector General Oliver Davis. “We are proud to work closely with our partners at the U.S. Attorney’s Offices and the Department of Justice and will continue to enforce the Fair Housing Act by pursuing bad actors who take advantage of tenants and prospective tenants in violation of the law.”
The virtual engagement signified the partnership between the federal agencies to promote the health and safety of tenants residing in HUD-assisted housing. Representatives of all agencies expressed their commitment to working together to bring justice to victims of predatory landlords and other housing providers who sexually harass or sexually assault tenants and/or prospective tenants in violation of the federal Fair Housing Act. Discussion topics included information about the scope and use of the Fair Housing Act, tenant rights under the law, how to recognize and report sexual misconduct in housing, and case studies.
Participants included representatives from legal aid offices, fair housing organizations, and other community organizations who assist underserved and underrepresented communities with housing. Participants were encouraged to share their experiences, concerns, and expertise to forge future partnerships and provide resource assistance to beneficiaries when reporting allegations of sexual misconduct in housing.
If you or someone you know has information about or has been a victim of sexual harassment, sexual assault, or sexual exploitation – even if the events occurred years ago – report it to the HUD Office of Inspector General Hotline at 1-800-347-3735 or visit the website at www.hudoig.gov/hotline.
You may also file a complaint with HUD’s Office of Fair Housing and Equal Opportunity at https://www.hud.gov/fairhousing/fileacomplaint
You may also contact the U.S. Department of Justice at 1-844-380-6178 or visit www.civilrights.justice.gov.
Individuals who believe they may have been victims of sexual harassment or other housing discrimination may also contact the U.S. Attorney’s Office at:
Western District of North Carolina: Charlotte (704) 344-6222 or Asheville (828) 271-4661
Middle District of North Carolina: (336) 333-5351
Eastern District of North Carolina: (919) 856-4530
For more information on the three North Carolina U.S. Attorney’s Offices, priorities, and resources available to help the community, please visit:
Western District of North Carolina: https://www.justice.gov/usao-wdnc
Middle District of North Carolina: https://www.justice.gov/usao-mdnc
Eastern District of North Carolina: https://www.justice.gov/usao-ednc
Husband Charged with Wife's 2013 Murder in Indian Country Appears in Federal CourtRead the Press Release
ASHEVILLE, N.C. – A Swain County man is facing a federal charge for allegedly killing his wife in 2013, announced Dena J. King U.S. Attorney for the Western District of North Carolina.
Ernest D. Pheasant, Sr., 46, an enrolled member of the Eastern Band of Cherokee Indians (EBCI), is charged with one count of first-degree murder in Indian Country. Pheasant made his initial court appearance on Monday, April 8, 2024, before U.S. Magistrate Judge W. Carleton Metcalf.
According to allegations in the indictment, on December 29, 2013, Pheasant killed his spouse, Marie Walkingstick Pheasant, and did so willfully, deliberately, maliciously, and with premeditation. The indictment alleges that the murder occurred on the Qualla Boundary within Indian Country.
Pheasant remains in federal custody. His arraignment and detention hearings are scheduled for Wednesday, April 10, 2024, at 11:25 a.m., in Asheville.
The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The charges arose from an investigation by the FBI in North Carolina, the Missing and Murdered Unit of the Bureau of Indian Affairs' Office of Justice Services, the North Carolina State Bureau of Investigation, the North Carolina Highway Patrol, the Cherokee Indian Police Department, and the EBCI Office of the Tribal Prosecutor.
Assistant United States Attorney Alex M. Scott of the U.S. Attorney’s Office in Asheville is prosecuting the case.
The Department of Justice and the U.S. Attorney’s Office for the Western District of North Carolina continue to prioritize the investigation and prosecution of cases involving Missing or Murdered Indigenous Persons (MMIP) and bring justice to victims and their families. For more information about the Justice Department’s efforts to address the MMIP crisis, please visit the MMIP section of the Tribal Safety and Justice website at: https://www.justice.gov/tribal/mmip.
Separate Indictments Charge Two Individuals with Possession of A MachinegunRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced federal charges against two individuals charged via criminal indictments with possession of machinegun conversion devices, 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. Federal law prohibits the possession of a machinegun and defines as a machinegun the converted firearm or a device designed or intended for use in converting a firearm into a machinegun. Furthermore, under federal law, the conversion device is illegal and classified as a machinegun whether it is affixed to a firearm or not.
Trevaris Devar Kennedy, 21, of Statesville, N.C., is charged with possession of a machinegun and possession of a firearm by a felon. Kennedy was arrested this morning and will have his initial appearance in Charlotte on Tuesday, April 9, at 10:20 a.m. According to allegations in the indictment, on December 22, 2023, in Iredell County, Kennedy did knowingly possess a machinegun, that is a device intended to convert a semiautomatic handgun into a machinegun capable of fully automatic fire, without manual reloading, by a single function of the trigger. The indictment further alleges that, on that date, Kennedy did illegally possess two Glock semi-automatic pistols, knowing he had been convicted of at least one crime punishable by imprisonment for a term exceeding one year.
In the second case, a criminal indictment charges Tiquavion Davonta Ervin, 21, of Charlotte, with possession of a machinegun. As alleged in the indictment, on July 25, 2023, in Mecklenburg County, Ervin knowingly and willfully possessed a machinegun, that being a 9x19mm caliber handgun of undetermined origin, also known as a ghost gun, manufactured utilizing a Polymer80 brand kit and affixed with a Glock switch.
The charges contained in these indictments are allegations and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Statesville Police Department handled the investigation into Kennedy. Assistant U.S. Attorney Shavonn Bennette is prosecuting the case.
The ATF and the Charlotte Mecklenburg Police Department investigated Ervin’s case. Special Assistant U.S. Attorney (SAUSA) William Wiseman of the U.S. Attorney’s Office in Charlotte is prosecuting 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 District Attorney’s Office and the U.S. Attorney’s Office.
Both 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. In July 2022, as part of PSN, the U.S. Attorney’s Office launched Think Again, a local initiative aiming to raise awareness about gun crimes and illegal firearms purchasing or misuse and to increase the reporting of illegal firearms activity to law enforcement.
Previously Extradited Nigerian National Pleads Guilty for His Role in Multimillion-Dollar Business Email Compromise SchemeRead the Press Release
CHARLOTTE, N.C. – Oludayo Kolawole John Adeagbo, 45, a Nigerian national previously extradited from the United Kingdom, has pleaded guilty to wire fraud conspiracy for his role in a multimillion-dollar business email compromise (BEC) scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina (WDNC), and Alamdar S. Hamdani, U.S. Attorney for the Southern District of Texas (SDTX).
Adeagbo, aka John Edwards and John Dayo, arrived in the United States in August 2022 after he was extradited from the United Kingdom to face criminal charges brought against him by federal prosecutors in Charlotte and in Houston. Adeagbo has now pleaded guilty for his criminal conduct in both cases, following the transfer of the case in the U.S. District Court in the SDTX to the U.S. District Court in the WDNC.
A BEC scheme, also referred to as “cyber-enabled financial fraud,” is a sophisticated scam that often targets individuals, employees, or businesses involved in financial transactions or that regularly perform wire transfer payments. Fraudsters are usually part of larger criminal networks operating in the United States and abroad.
There are many variations of BEC scams. Generally, the schemes involve perpetrators gaining unauthorized access to legitimate email accounts or creating email accounts that closely resemble those of individuals or employees associated with the targeted businesses or involved in business transactions with the victim businesses. The scammers then use the compromised or fake email accounts to send false wiring instructions to the targeted businesses or individuals, to dupe the victims into sending money to bank accounts controlled by perpetrators of the scheme. Generally, the money is quickly transferred to other accounts in the United States or overseas.
The BEC scheme in the WDNC
According to filed plea documents and court proceedings, from Aug. 30, 2016, to Jan. 12, 2017, Adeagbo, his codefendant, Donald Ikenna Echeazu, 42, a dual citizen of Nigeria and the United Kingdom extradited to the United States, and others defrauded a North Carolina university (the University) of more than $1.9 million via a BEC scheme.
Court records show that Adeagbo and his co-conspirators obtained information about significant construction projects occurring throughout the United States, including an ongoing multi-million-dollar project at the victim University. To execute the scheme, Adeagbo, Echeazu, and others registered a domain name similar to that of the legitimate construction company in charge of the University’s project and created an email address that closely resembled that of an employee of the construction company. Using the fake email address, the fraudsters deceived and directed the University to wire a payment of more than $1.9 million to a bank account controlled by an individual working under the direction of Adeagbo and his co-conspirators. Upon receiving the payment, Adeagbo and his co-conspirators laundered the stolen proceeds through a series of financial transactions designed to conceal the fraud.
The BEC scheme in the SDTX
According to information contained in court documents, from November 2016 until July 2018, Adeagbo conspired with others to participate in multiple cyber-enabled business email compromises in an attempt to steal more than $3 million from victim entities in Texas, including local government entities, construction companies and a Houston-area college. As with the scheme in North Carolina, Adeagbo and his co-conspirators registered domain names that looked similar to legitimate companies. They then sent emails from those domains pretending to be employees at those companies to clients or customers of the companies they impersonated, and deceived those customers into sending wire payments to bank accounts the co-conspirators controlled.
Adeagbo remains in federal custody. At sentencing, he faces a maximum of 20 years in federal prison on each count. According to the plea agreements, Adeagbo will be required to pay a money judgment to be determined by the court and restitution in the full amount of the victims’ losses, which is alleged to be at least $14,185,847.42. A sentencing date has not been set.
U.S. District Judge Kenneth D. Bell in the WDNC sentenced Echeazu to 18 months in prison followed by a year of supervised release and ordered the defendant to pay $655,408.87 in restitution for his role in the conspiracy.
U.S. Attorney King and U.S. Attorney Hamdani commended the FBI’s Charlotte Field Office for handling the North Carolina investigation and the FBI’s Houston Cyber Task Force for conducting the investigation in Texas with the assistance of the FBI’s Cyber and Criminal Investigative Divisions. They also thanked the United Kingdom’s National Crime Agency, the Metropolitan Police Service, the City of London Police, and the Crown Prosecution Service for their substantial assistance, and the Department of Justice’s Office of International Affairs for securing the arrest and extradition of Adeagbo and Echeazu.
Assistant U.S. Attorney Graham Billings of the WDNC is in charge of the prosecution. Assistant U.S. Attorney Rodolfo Ramirez of the U.S. Attorney’s Office in the SDTX handled the criminal proceedings in Houston, along with Trial Attorney Brian Mund of the Justice Department’s Criminal Division Computer Crime and Intellectual Property Section (CCIPS).
If you suspect you are a victim of a BEC scheme, you can file a complaint online with the FBI’s Internet Complaint Crime Complaint Cetner (IC3) at bec.ic3.gov. The IC3 staff reviews complaints to detect patterns or other indicators of significant criminal activity for potential criminal prosecution. The FBI provides a variety of resources relating to BEC scams through the IC3, which can be located at www.ic3.gov. For more information on BEC scams, visit: https://www.fbi.gov/scams-and-safety/common-scams-and-crimes/business-email-compromise.
Large-Scale Methamphetamine Trafficker Is Sentenced to 16 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – A large-scale methamphetamine trafficker was sentenced to 192 months in prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Jeffrey Scott Ohmer, 34, of Morganton, N.C. was also ordered to serve 5 years under court supervision after he is released from prison. Ohmer’s girlfriend and co-defendant, Destiny Nicole Miller, 36, also of Morganton, has pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and is awaiting sentencing.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Sheriff Alan C. Jones of the Caldwell County Sheriff’s Office (CCSO) join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, on April 5, 2022, CCSO deputies encountered Ohmer and Miller driving in a vehicle that had been reported stolen. Ohmer was the driver of the vehicle and Miller was in the front passenger seat. A traffic stop was initiated during which deputies searched Miller, Ohmer, and the vehicle. Deputies retrieved from Miller’s waistband a zipper bag that contained methamphetamine. Deputies also located in the front seat area of the vehicle a box of quart size Ziploc bags and a set of digital scales. Both Ohmer and Miller were charged with state drug offenses.
Court records show that on October 27, 2022, CCSO deputies encountered Ohmer driving a vehicle and attempted to pull him over for a traffic violation. CCSO deputies searched Ohmer’s vehicle and located a black backpack. Inside the backpack they found 12 Ziploc bags containing methamphetamine with a combined weight of 1.3 kilograms, a handgun with an extended magazine, 29 rounds of ammunition, two bags of marijuana, and digital scales. Over the course of the investigation, law enforcement determined that Ohmer possessed over 15 pounds of methamphetamine, which he sold to other local distributors.
According to court records, on November 1, 2022, CCSO deputies learned that Miller was attempting to sell a fully automatic machine gun on Ohmer’s behalf. During an undercover operation, Miller met with an undercover officer (UC) and a confidential informant (CI) who told Miller they were interested in buying guns and drugs. Miller sold the UC a machine gun with a silencer, a pistol, and ammunition. Miller sold the CI approximately 7.8 grams of methamphetamine.
In making today’s announcement, U.S. Attorney King thanked the ATF and CCSO for their investigation of the case.
Assistant U.S. Attorney Brandon Boykin 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.
Gastonia Woman Pleads Guilty to Wire Fraud for COVID-19 SchemeRead the Press Release
CHARLOTTE, N.C. – A Gastonia, N.C., woman pleaded guilty today to wire fraud for fraudulently obtaining $125,317 in COVID-19 pandemic relief loans, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Kelly Bree Mosley, 48, entered her guilty plea before U.S. Magistrate Judge Susan C. Rodriguez.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina joins U.S. Attorney King in making today’s announcement.
According to plea documents and today’s court hearing, between May 2020, and April 2021, Mosley used false information to apply for loans from the Economic Injury Disaster Loan (EIDL) Program and the Paycheck Protection Program (PPP). To obtain the loans, Mosley submitted applications on behalf of fictitious event planning businesses and in her own name that contained materially false information, including gross revenues, payroll expenses, number of employees, and operational costs and expenditures. Each time Mosley submitted an application, she certified under the penalty of perjury that the information was true and correct, and that Mosley would use the funds as directed by the EIDL and PPP programs. Based on the fraudulent applications, Mosley received approximately $125,317 in COVID-19 relief funds. Contrary to her claims, Mosley used the funds from the PPP and EIDL programs to pay her personal bills, invest in foreign currency, and to pay for plastic surgery, such as liposuction.
Mosley is currently released on bond. The wire fraud charge carries a maximum sentence of 20 years in prison. A federal district court judge will determine Mosley’s sentence at a later time, after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case.
Assistant U.S. Attorney Matthew Warren of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Charlotte Man Charged with Falsely Impersonating A Federal OfficerRead the Press Release
CHARLOTTE, N.C. – A newly-unsealed criminal indictment charges William Mohr Eubank, 37, of Charlotte, with multiple counts of falsely impersonating a federal officer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The indictment was returned on March 19, 2024, and was unsealed upon Eubank’s initial court appearance.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Kyle Burns, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina join U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, between 2021 and 2024, Eubank falsely claimed to be a federal law enforcement officer on multiple occasions. Specifically, in April 14, 2021, Eubank purported to be a U.S. Department of Justice law enforcement officer working on a Joint Counterterrorism Task Force in order to obtain a 2018 Chevrolet Tahoe outfitted with law enforcement emergency lights, siren, console, and partition push bar. The indictment further alleges that, on May 19, 2021, Eubank falsely claimed to be the Deputy Director of the Community Emergency Response Team for the U.S. Department of Homeland Security (DHS), and made false statements to the Charlotte Mecklenburg Police Department (CMPD) in order to obtain CMPD radio codes for his handheld radio and his “DHS-issued” Chevrolet Tahoe. The indictment also alleges that, on January 21, 2024, Eubank pretended to be a Special Agent with Homeland Security Investigations and made false statements to Sugar Mountain police officers about working with and for various federal law enforcement agencies.
The charges contained in the indictment are allegations and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Eubank had his initial appearance today in U.S. District Court in Charlotte. U.S. Magistrate Judge Susan C. Rodriguez ordered that Eubank remain in custody until his detention hearing.
U.S. Attorney King thanked the FBI and HSI for their investigation of the case and the North Carolina State Highway Patrol, the Charlotte-Mecklenburg Police Department, the Gaston County Police Department, the Sugar Mountain Police Department, the Avery County Sheriff’s Office, and the Union County Sheriff’s Office for their invaluable assistance.
Assistant U.S. Attorney Kenneth Smith of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Statesville Man Sentenced to 15 Years in Prison for Possession and Receipt of Child PornographyRead the Press Release
STATESVILLE, N.C. – Jessie Leroy Glass, Jr., 50, of Statesville, was sentenced to 180 months in prison followed by a lifetime of supervised release for possession and receipt of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also ordered Glass to register as a sex offender after he is released from prison and to pay $5,000 in fines and $6,000 in restitution.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Kyle D. Burns, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Sheriff Darren Campbell of the Iredell County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to trial evidence, witness testimony and filed court documents, between January and February 2020, Glass received and possessed images and videos of child pornography. As trial evidence established, the Iredell County Sheriff’s Office initiated an investigation into Glass after an individual alerted law enforcement about Glass’s possession of child pornography. Over the course of the investigation, law enforcement recovered two cell phones associated with Glass. A forensic analysis of the cell phones revealed that they contained images and videos depicting the sexual abuse of children, including infants and toddlers. In June 2023, a federal jury convicted Glass on all counts.
The Court ordered that Glass not possess electronic devices while he was out on bond both before and after the jury convicted him at trial. At today’s sentencing hearing, the Court granted the government’s request for a higher sentence after the Court found that Glass violated the conditions of his bond on two occasions by possessing electronic devices, including cell phones, that he hid from his supervising probation officer. One of the secret cell phones that Glass possessed after his conviction and while he was on bond contained cartoon images depicting the sexual abuse of children.
Glass 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 commended the FBI, HSI, and the Iredell County Sheriff’s Office for their investigation of the case.
Assistant United States Attorneys Kimlani Ford and Stephanie Spaugh 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.
Monroe, N.C. Man Is Sentenced to 25 Years in Prison for Sexual Exploitation of A MinorRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Frank D. Whitney sentenced Jake Henry Anderson, 24, of Monroe, N.C., to 300 months in federal prison followed by a lifetime of supervised release for production of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Anderson was also ordered to register as a sex offender upon completion of his prison term.
According to Anderson’s guilty plea and other documents filed with the court, between July 8, 2021, and July 10, 2021, Anderson induced, enticed, and coerced a minor to engage in sexually explicit conduct and produced a visual depiction of the conduct. Court documents show that Anderson befriended the 15-year-old minor female on Snapchat and began to communicate with her. Over the course of their communications, Anderson exchanged sexually explicit images with the minor victim and discussed having sex with her. As their communications progressed, Anderson discussed meeting the minor victim and told her he would make her his girlfriend.
According to court documents, on July 8, 2021, Anderson drove to the minor victim’s house in Tennessee, picked her up from her home and drove her back to his home in Union County, North Carolina. During this time, Anderson engaged in sexual acts with the minor victim. Videos of the sexual acts were recorded and saved in his Snapchat account. Anderson was arrested after the minor was reported missing and law enforcement was able to trace her to the defendant’s home.
Filed court documents show that after Anderson’s arrest and upon seeing the defendant’s picture in the news, another individual contacted law enforcement to report that a 16-year-old female had also been in contact with Anderson. During their communications on Snapchat, Anderson pressured this minor victim to send him sexual images of herself, to leave her family, and to move in with him. Investigators also determined that Anderson had driven by the minor victim’s house and briefly met with her.
On June 29, 2022, Anderson pleaded guilty to production of child pornography. 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 Homeland Security Investigations, the Union County Sheriff’s Office and the Rutherford County (Tennessee) Sheriff’s Office for their work in the investigation.
Assistant U.S. Attorney Stephanie Spaugh 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.
Charlotte Tax Preparer Is Sentenced to Prison for Scheme to Obtain $780,000 in Fraudulent Coronavirus Relief Funds and Money LaunderingRead the Press Release
CHARLOTTE, N.C. – Zadih Cadyma, 66, of Charlotte, was sentenced today to 30 months in prison followed by three years of supervised release for fraudulently obtaining $780,000 in COVID-19 pandemic relief loans and money laundering, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Cadyma was also ordered to pay restitution in the amount of $762,952.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, andDonald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Charlotte Field Office, join U.S. Attorney King in making today’s announcement.
According to court documents, Cadyma was a tax return preparer who owned and operated CFE Tax Services in Charlotte and other registered businesses. From 2020 to 2021, Cadyma applied for 10 fraudulent COVID-19 loans from the Economic Injury Relief Disaster Loan Program (EIDL) and three Paycheck Protection Program (PPP) loans for his businesses under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. In the loan applications, Cadyma made false representations about his businesses, including gross revenues, monthly payroll expenses, number of employees, and other covered operational expenditures. As a result, Cadyma fraudulently received $550,000 under the EIDL program and $230,000 in PPP loan proceeds. Contrary to claims Cadyma made on the loan applications that the funds would be used for legitimate and permissible business purposes, Cadyma used the loan proceeds for his own benefit and to support his lifestyle, including to purchase a new luxury vehicle.
On April 27, 2023, Cadyma pleaded guilty to wire fraud and money laundering.
In making today’s announcement, U.S. Attorney King thanked the FBI and IRS-CI for their investigation of the case.
Assistant U.S. Attorney Graham Billings prosecuted the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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U.S. Attorney Dena J. King Joins State and Local Officials to Highlight Efforts to Combat the Fentanyl EpidemicRead the Press Release
CHARLOTTE, N.C. – This morning, U.S. Attorney Dena J. King joined North Carolina Attorney General Josh Stein, local law enforcement officials and other partners to raise awareness about the fentanyl epidemic and highlight efforts to stem the flow of fentanyl and other dangerous drugs in our communities.
Speaking at a press conference held at the Mecklenburg County Detention Center in Charlotte, U.S. Attorney King said that federal prosecutors are focusing on disrupting and dismantling large trafficking organizations responsible for supplying the bulk of fentanyl distributed throughout the Western District of North Carolina, and holding accountable individuals who sell lethal substances like fentanyl, causing serious bodily injuries, drug poisonings, and overdose deaths. U.S. Attorney King emphasized the importance of working with government agencies, law enforcement, and organizations dedicated to the provision of services for substance use disorder prevention, treatment, and recovery to support communities across Western North Carolina.
“Families should not have to face this crisis alone,” said U.S. Attorney King. “My Office is committed to supporting our communities and our law enforcement partners through this crisis and bringing to justice those responsible for poisoning our friends, our neighbors, and our loved ones. Together, we will fight against this epidemic to free our communities from its deadly grip and make funding available to support vital prevention, treatment, and recovery efforts.”
“The fentanyl crisis is devastating our people, and we need everyone at the table working together to combat fentanyl trafficking,” said North Carolina Attorney General Josh Stein. “I’m grateful to U.S. Attorney King and her office for their partnership in the Fentanyl Task Force and other efforts to hold drug traffickers accountable.”
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.
Charlotte Man Convicted of Robbing Two Businesses Is Sentenced to Life in PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced John Henry Moore, 60, of Charlotte, to life in prison for the armed robbery of two businesses, 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 join U.S. Attorney King in making today’s announcement.
In October 2022, a federal jury convicted Moore of two counts of Hobbs Act robbery, possession of a firearm in furtherance of a crime of violence, and possession of a firearm by a convicted felon. Today, Moore received an enhanced sentence under the provision of the “Three Strikes” statute, which mandates a sentence of life in prison for defendants previously convicted, on separate occasions, of two or more serious violent felonies.
According to filed court documents, evidence presented at trial, and today’s court proceedings, on December 1, 2018, Moore robbed a Spectrum store located at 2222 South Boulevard, in Charlotte. Trial evidence established that Moore entered the store at approximately 8:00 p.m. and brandished a firearm to employees who were working at the time. Moore then ordered the employees to hand over cash from the registers and Moore fled the scene. Trial evidence established that Moore left behind an umbrella which he had used to prop the door open during the robbery. That umbrella was later tested by the FBI and found to contain DNA which matched the defendant.
According to trial evidence and witness testimony, on December 10, 2018, Moore returned to the same area and robbed the Publix Super Market also located at 2222 South Boulevard, in Charlotte. Trial evidence showed that Moore walked into the store, approached a store employee and demanded cash. During the robbery, Moore kept his hand in his pocket and threatened the employee, warning the victim to not “get shot.” The employee handed Moore cash and Moore fled the scene.
According to trial evidence, law enforcement identified Moore as the person who committed the two robberies. On December 12, 2018, law enforcement executed a search warrant at Moore’s residence, seizing a loaded firearm with an obliterated serial number and clothing that matched the description of the items Moore wore during the robberies.
Moore was subject to the mandatory life sentence based on his extensive history involving multiple federal bank robbery convictions. Specifically, Moore previously robbed a bank in Georgia (2004) and three banks in South Carolina (1995) and was on federal supervised release for the latter of those convictions when he carried out the robberies in Charlotte for which he was sentenced today. Moreover, at the time Moore executed the bank robberies in Georgia and South Carolina, he was on federal supervised release for robbing two banks in Charlotte and a bank in Rock Hill, S.C. (1989).
In making today’s announcement, U.S. Attorney King thanked the FBI and CMPD for their investigation of the case.
Assistant U.S. Attorney Lawrence Cameron 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.
Two Charlotte Men Face Federal Charges for Scheme That Involved Buying and Selling Stolen High-End VehiclesRead the Press Release
CHARLOTTE, N.C. – A newly unsealed federal indictment charges two individuals for their roles in a conspiracy to buy and sell stolen high-end vehicles worth millions of dollars, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The defendants are also charged with gun offenses.
Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
Andre Lamar Sumner, 41, and Erren Woodson, 39, both of Charlotte, are charged in a conspiracy to transport, possess, and sell stolen vehicles in interstate commerce, and to possess with intent to sell vehicles with altered Vehicle Identification Numbers (VINs). Both defendants are also charged with possession of a stolen vehicle and possession of a firearm in furtherance of drug trafficking activities. Sumner is also charged with trafficking in motor vehicles with an altered VIN.
The indictment alleges that, between 2022 and 2024, Sumner, Woodson and others conspired to buy and sell high-end motor vehicles that were stolen from car dealerships, rental car companies, and private parties across the United States, including North Carolina, South Carolina, Florida, Alabama, Maryland, Pennsylvania, New Jersey, New York and Missouri. As alleged in the indictment, Sumner operated as a “fence” in the conspiracy, buying and selling the stolen motor vehicles. A fence is someone who assists in finding or dealing with buyers for stolen properties. To maximize profits, Sumner sought to fence high-end stolen vehicles such as luxury models made by BMW, Land Rover, Porsche, Mercedes-Benz and Rolls-Royce, as well as trucks and other expensive modes from Chevrolet, Dodges, Ford and RAM. According to allegations in the indictment the conspiracy involved stolen vehicles worth millions of dollars.
The indictment further alleges that Sumner sold the stolen cars to buyers at prices significantly below the vehicles’ fair market values. To avoid detection and to maximize the stolen vehicles’ resale values, Sumner and others regularly altered the stolen vehicles’ original VINs and fraudulently registered the stolen vehicles with various state motor vehicle agencies. According to allegations in the indictment, Woodson purchased stolen vehicles from Sumner and sought potential buyers for Sumner’s stolen vehicles.
The indictment alleges that, during the scheme, Sumner and Woodson were also engaged in the distribution of narcotics and unlawfully possessed a variety of firearms, including handguns, shotguns and rifles, in furtherance of their drug trafficking activities.
The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
The conspiracy charge carries a maximum penalty of five years. Each charge of possession of a stolen vehicle and trafficking in motor vehicles with an altered VIN carries a statutory maximum penalty of 10 years in prison. The charge of possession of a firearm in furtherance of a drug trafficking crime carries a maximum penalty of life in prison.
This is the third indictment filed in U.S. District Court in Charlotte related to trafficking in stolen vehicles. Five individuals were indicted in August 2023, for stealing luxury vehicles from dealerships throughout the United States. Two additional individuals were indicted in November 2023, for orchestrating high-end auto thefts from businesses in South Carolina.
U.S. Attorney King thanked the FBI and CMPD for their investigation of the case.
Assistant U.S. Attorneys William Bozin and Daniel Ryan of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
U.S. Attorney's Office Secures Settlement Agreement with Nantahala Weddings, LLC to Provide Individuals with Disabilities Equal Access to Its FacilitiesRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office has reached a settlement agreement with Nantahala Weddings, LLC (Nantahala Weddings) to remedy alleged violations of the Americans with Disabilities Act (ADA) at its facilities in western North Carolina, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
“The U.S. Attorney’s Office is committed to ensuring that everyone has equal access to businesses and facilities available to the public,” said U.S. Attorney King who also serves as Chair of the U.S. Attorney General’s Subcommittee on Civil Rights. “This settlement reflects our commitment. It is critical for companies to maintain accessible facilities so that individuals with disabilities can fully use and enjoy a business’s goods and services. I commend Nantahala Weddings for its cooperation and for taking swift remedial action to ensure its facilities are ADA compliant.”
According to a civil rights complaint filed with the U.S. Department of Justice, Nantahala Weddings was violating the ADA by, among other things, charging a fee to transport individuals with mobility impairments up a non-accessible hill to the main wedding ceremony area and failing to offer accessible restrooms to guests. The property offers lodgings for rent and includes several buildings, outdoor pavilions, and open-air gathering areas separated by wooded areas and steep hills.
Upon learning of the complaint, the Nantahala Weddings took prompt action to remedy certain architectural barriers on its own initiative. Thereafter, it fully cooperated with the investigation by the U.S. Attorney’s Office and subsequently agreed to remedy its accessibility issues. The business has already begun implementing the terms of the settlement agreement.
As part of the settlement, Nantahala Weddings will construct accessible lodging for guests to rent, which will include an accessible entryway, bathroom, and bedroom; build accessible exterior walkways connecting its facilities or, where specified, offer accessible transportation to guests with no surcharge; renovate single use bathrooms and other facilities for ADA compliance; and remedy various other architectural barriers to access.
“We appreciate the U.S. Attorney’s Office bringing these matters to our attention as – like many small businesses – we were not aware of the ADA’s requirements. We value the opportunity to make our property accessible, and we firmly believe that implementing the recommended changes will ensure all our guests feel comfortable, safe, and welcome,” said Jody Hafey, an owner of Nantahala Weddings.
Title III of the ADA prohibits discrimination against individuals with disabilities by businesses that serve the public, such as Nantahala Weddings. Such businesses also cannot impose a surcharge on persons with a disability who seek to participate in its goods and services. Individuals who believe they have been victims of discrimination may file an ADA complaint online here. 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).
Assistant U.S. Attorney Jonathan M. Warren of the U.S. Attorney’s Office in Charlotte is handling this matter.
In April 2022, U.S. Attorney King announced the formation of the U.S. Attorney’s Office Civil Rights Team, to focus on prioritizing criminal and civil enforcement actions and increasing education and community outreach efforts. The Civil Rights Team comprises federal prosecutors and staff from the Office’s Criminal and Civil Divisions in Charlotte and in Asheville. U.S. Attorney King has appointed a Criminal Civil Rights Coordinator to lead the Team’s efforts in investigating and prosecuting criminal civil rights violations, including hate crimes, color of law violations, and human trafficking cases. U.S. Attorney King also appointed a Civil-Civil Rights Coordinator, who is tasked with prioritizing civil enforcement actions related to discrimination in housing, lending, employment, and education, and the protection of voting rights and disability rights or access, among other areas. For more information about the U.S. Attorney’s Office’s Civil Rights Team visit our website.
Former Executive Director Pleads Guilty in Federal Court for Stealing Thousands of Dollars from Gastonia Non-ProfitRead the Press Release
CHARLOTTE, N.C. – Stephanie L. Roberts, 54, of Gastonia, N.C., pleaded guilty today to stealing thousands of dollars from a non-profit corporation for cancer patients, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined by Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI),Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, and Chief Trent Conard of the Gastonia Police Department in making today’s announcement.
According to court documents, Roberts served as the executive director of a Gastonia non-profit corporation that provides support and resources for cancer patients. Beginning no later than January 8, 2016, through January 21, 2022, Roberts embezzled more than $136,000 from the non-profit corporation. In addition, Roberts admitted in court today that she failed to pay more than $200,000 withheld from the paychecks of the non-profit corporation’s employees for federal income, Medicare and Social Security taxes to the IRS. Lastly, Roberts made and subscribed under penalty of perjury U.S. Income Tax Returns in which she falsely stated the amount of tax withheld from her wages and claimed that amount was paid to the IRS.
Roberts pleaded guilty to theft in connection with health care, which carries a maximum penalty of 10 years in prison; failure to truthfully account for and pay over trust fund taxes, which carries a statutory sentence of no more than five years in prison; and making and subscribing a false tax return, which carries a penalty of up to three years in prison. According to the terms of Roberts’ plea agreement, she will be required to pay full restitution to the non-profit corporation. Also, at sentencing, Roberts will be subject to additional court fines and a forfeiture money judgement. A federal judge will determine the actual sentence at a hearing not yet scheduled.
In making today’s announcement, U.S. Attorney King commended IRS-CI, USPIS, and the Gastonia Police Department for their investigation of the case.
Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
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Seattle Man Found Guilty at Trial of Indecent Exposure on an AircraftRead the Press Release
CHARLOTTE, N.C. – A federal judge found Evan Thomas Carter, 46, of Seattle, Washington, guilty of indecent exposure on an aircraft following a bench trial yesterday, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. Magistrate Judge Susan C. Rodriguez presided over the trial.
Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, on August 27, 2020, Carter was traveling on American Airlines Flight 560 from Seattle to Charlotte. Trial evidence established that, over the course of the flight, Carter exposed his genitalia to the passengers seated in his row and was rubbing himself. Trial evidence showed that Carter would hide his genitalia when people walked down the aisle and was exposed for at least 20 minutes until the passengers in his row were moved.
Carter was convicted of one count of indecent exposure on an aircraft, a misdemeanor offense punishable by no more than 90 days in prison and a $500 fine. A sentencing date has not been set.
The FBI investigated the case with the assistance of the Charlotte Mecklenburg Police Department.
Assistant U.S. Attorney Matthew Warren of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
U.S. Attorney Dena J. King Leads Panel Discussion with Student Government Representatives on Youth Violence Prevention and InterventionRead the Press Release
CHARLOTTE, N.C. – Forty-eight student government representatives from high schools in North Carolina’s westernmost counties and the Eastern Band of Cherokee Indians gathered today at the Cherokee High School on the Qualla Boundary for the 2024 Western North Carolina Student Council Spring Conference (WNC Conference).
The annual conference is an opportunity for high school student leaders to exchange ideas and information on important topics that impact their schools, network with other student body representatives, and collaborate on how to engage their campus communities.
WNC Conference organizers invited U.S. Attorney Dena J. King again this year to lead a panel on youth violence disruption, prevention and intervention. During the panel discussion, U.S. Attorney King shared information on the contributing factors of youth violence and encouraged students to trade ideas with their peers on how to prevent and stop incidents of violence in their schools. U.S. Attorney King also stressed the important role student governments play in facilitating solutions that can reduce acts of violence and enhance safe learning. Over the course of the panel, students had an opportunity to ask questions and share their perspectives on the causes and circumstances that may lead to youth violence and offered possible remedies to help reduce violence on school grounds.
“Student council members are elected to be the students’ voice within their schools and represent the interests, concerns and needs of their peers,” said U.S. Attorney King. “As student leaders, they are also tasked with raising issues that may impact academic achievement and prevent students from thriving in their classrooms. I encourage all students attending the conference to network with each other, share their experiences, and facilitate ideas that can be implemented in their own high schools.”
U.S. Attorney King also stressed the importance of developing effective communication and leadership skills, increasing student involvement within the community, and facilitating positive interactions with law enforcement.
U.S. Attorney King noted, “Today’s event is an opportunity to connect with student leaders, encourage them to make the right choices and develop skills and ideas that will be beneficial to their schools and the students they represent. Helping young people understand the root causes of violence, listening to their input, and sharing perspectives on how to increase safety in their schools can make our broader communities better and safer and strengthen the ties between law enforcement and the youth population we seek to nurture, serve and protect.”
Two Cocaine Traffickers Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Two Charlotte-based members of a Drug Trafficking Organization (DTO) were sentenced to prison today for trafficking large quantities of cocaine, 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, Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
Carlos Hernandez Landeiro, 33, and Holly Christine Furlough, 31, both of Charlotte, were each sentenced to 10 years in prison followed by 10 years of supervised release. A third co-defendant, Dante Rashaun Ramseur, 44, of Hickory, North Carolina, was previously sentenced to 121 months in prison followed by six years of supervised release.
According to filed court documents and today’s sentencing hearing, law enforcement conducting an investigation into drug trafficking networks in Catawba County determined that Ramseur was distributing significant quantities of cocaine in the Hickory area. Investigators further determined that the cocaine was supplied to Ramseur by Landeiro and Furlough. On February 13, 2023, Landeiro and Furlough attempted to deliver cocaine to Ramseur, which he then intended to sell to an undercover officer. Later that day, law enforcement executed a search warrant at Landeiro and Furlough’s residence. During the search, law enforcement seized 26 kilograms of cocaine, drug paraphernalia to include a vacuum sealer, a money counter, and more than $120,000 in cash drug proceeds. Court records show that the defendants’ residence where the cocaine was seized is next door to a Charlotte high school.
In September 2023, Landeiro and Furlough pleaded guilty to possession with intent to distribute cocaine and possession with intent to distribute cocaine near a school. They are currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
This case was investigated by a joint Organized Crime Drug Enforcement Task Force (OCDETF) which includes the DEA, the FBI, and the Catawba County Sheriff’s Office. 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.
Assistant U.S. Attorney Regina Pack of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
Arkansas Man Sentenced to 20 Years in Prison for Distribution of Child PornographyRead the Press Release
CHARLOTTE, N.C. – Cannon Earl Kress, 50, of Fort Smith, Arkansas, was sentenced to 20 years in prison today for distribution of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Upon his release from prison, Kress will be subject to a lifetime of supervised release and must register as a sex offender. U.S. District Judge Kenneth D. Bell also ordered Kress to pay $18,000 in assessments and restitution.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Andy LeBeau of the Boone Police Department join U.S. Attorney King in making today’s announcement.
According to court documents and today's sentencing hearing, in October 2022, Kress started a group on Kik where members of the group posted child pornography images and videos and discussed their sexual interest in children. An undercover detective infiltrated the group and downloaded child pornography videos that Kress had uploaded to the group. The undercover detective also chatted with Kress via the Kik messenger application. During those communications, Kress expressed an interest in engaging in illicit sexual acts with a five-year-old female child and arranged with the detective to meet and have sex with the child. On November 2, 2022, Kress traveled to Hickory, North Carolina, for the purpose of engaging in sexual acts with the child. Law enforcement was waiting for Kress at the pre-arranged meeting location and arrested him. Law enforcement seized Kress's phone and discovered child pornography videos on it.
On October 10, 2023, Kress pleaded guilty to distribution of child pornography. At today’s sentencing hearing, the Court granted the government’s request for the maximum 20-year sentence due, in part, to the nature and circumstances of Kress’s offense.
In making today’s announcement, U.S. Attorney King commended HSI and the Boone Police Department for their investigation of the case.
Assistant United States Attorney Kimlani Ford 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 https://www.justice.gov/psc.
Jury Convicts Charlotte Man of Illegal Firearm PossessionRead the Press Release
CHARLOTTE, N.C. – Today, a federal jury convicted Daniel Wood, 47, of Charlotte, of 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 trial evidence, witness testimony, and filed court documents, on May 1, 2022, Wood attempted to enter a Charlotte nightclub with a loaded firearm in his pants pocket. The security of the nightclub located the firearm when they patted down the defendant prior to entering the club. Security removed the firearm and turned it over to an off-duty CMPD officer. Trial evidence established that while the CMPD officer was in his patrol vehicle examining the firearm, Wood spoke to the officer and explained that he received the gun from someone else and that he had forgotten it was in the pocket of his pants.
Wood is in federal custody. A sentencing date has not been set.
The ATF and CMPD investigated the case.
Special Assistant U.S. Attorney (SAUSA) William Wiseman and Assistant U.S. Attorney Regina Pack of the U.S. Attorney’s Office in Charlotte are prosecuting 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 District Attorney’s Office and the U.S. Attorney’s Office.
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.
Two Charlotte Businessmen Convicted at Trial of Failing to Account for and Pay over Trust Fund TaxesRead the Press Release
CHARLOTTE, N.C. – A Charlotte jury has returned a guilty verdict against two Charlotte businessmen for failing to account for and pay over to the Internal Revenue Service (IRS) more than $150,000 in trust fund taxes over five quarters in 2016 and 2017. Richard Brasser, 57, and Gregroy Gentner, 52, both of Charlotte, were convicted of multiple counts of failing to account for and pay over the trust funds taxes.
Donald "Trey" Eakins, Special Agent in Charge of the IRS, Criminal Investigation Division (IRS-CI), Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
“When employers willfully fail to collect, account for and deposit with the IRS employment taxes due, they are stealing from the United States Treasury. In addition, employers who willfully fail to comply with their tax obligations unlawfully gain an unfair advantage over their honest competitors,” said U.S. Attorney King.
“Business owners such as Brasser and Gentner have a responsibility to withhold income taxes for their employees and then remit those taxes to the IRS,” said Special Agent in Charge Eakins. “The failure to pay over withheld taxes is a serious offense. IRS Criminal Investigation vigorously pursues anyone who engages in tax fraud schemes such as these.”
According to evidence presented at trial, witness testimony, and other court documents, rFactr was a company with offices in Charlotte, that sold software and provided ongoing support for that software to companies that were leveraging their social networks as part of their sales platforms. Brasser was rFactr’s Chief Executive Officer and Gentner the Chief Operating Officer. Trial evidence established that from 2015 through 2017, Brasser and Gentner caused rFactr to collect more than $600,000 in trust fund taxes from the wages of its employees, but did not account for the taxes by filing Forms 941 with the IRS. Moreover, the defendants did not pay over the withheld taxes to the IRS in a timely manner.
According to trial evidence, Brasser and Gentner had a history of noncompliance with rFactr’s employment tax obligations. Specifically, between 2013 and 2017, Brasser and Gentner failed to comply with rFactr’s employment tax obligations by failing to timely file rFactr’s employment tax returns and failing to timely pay over to the IRS rFactr’s employment taxes. In total, between 2015 and 2017, Brasser and Gentner caused rFactr to owe more than $1.1 million in employment taxes.
At sentencing, Brasser and Gentner each face a maximum sentence of five years in prison for each count of failing to account for and pay over the trust funds taxes.
IRS-Criminal Investigation investigated the case.
Assistant U.S. Attorney Caryn Finley and Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
North Carolina Home Health Care Agency and Owner Agree to Pay $600,000 to Resolve False Claims Act AllegationsRead the Press Release
CHARLOTTE, N.C. – Family First Home Health Care, Inc. (Family First), a home health care agency located in Gastonia, N.C. (now d/b/a Gaston Piedmont Health Care Inc.), and its owner Marion James (James) have agreed to collectively pay $600,000 to resolve allegations that they knowingly violated the Federal and North Carolina False Claims Acts from January 1, 2015, through January 9, 2020, by submitting thousands of fraudulent claims to Medicaid for reimbursement, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Specifically, the United States and State of North Carolina (together, the Governments) alleged that Family First and James billed Medicaid for personal care services that were never performed, such as billing for in-home services on days when patients were hospitalized. Similarly, the Governments alleged that Family First and James billed for years of personal care services purportedly provided to patients in their homes by James’ daughter while she was hours away at college as a full-time student playing on the varsity basketball team, or billed for services provided by an aide after that aide had moved out of state.
The Governments further alleged that Family First and James engaged in a scheme to have family member aides provide personal care services to their own family member beneficiaries (for example, a daughter providing services to her mother) in violation of state Medicaid regulations, and then fraudulently bill for those services as if they were performed by a non-related aide, forging documents and signatures to perpetuate the scheme.
“Medicaid beneficiaries qualifying for personal care services are those that require assistance with daily living tasks, often the elderly. This settlement demonstrates that those who would profit from defrauding government healthcare payors while taking advantage of vulnerable patients entrusted to their care will be held accountable,” said U.S. Attorney King.
“Submitting false claims to Medicaid undermines the integrity of the program and wastes valuable taxpayer dollars,” said Special Agent in Charge Tamala E. Miles at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, HHS-OIG remains committed to investigating providers who allegedly defraud federal health care programs.”
“These defendants stole hundreds of thousands of taxpayer dollars while never actually providing the care they claimed to,” said North Carolina Attorney General Josh Stein. “My office will hold accountable those who defraud the Medicaid system and take away resources from people who need them.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by former Family First employee Heather Coleman. Under those provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Coleman v. Family First Home Health Care, LLC and Marion James, No. 3:19-CV-405 (W.D.N.C.). The settlement amount was based on Family First and James’ ability to pay.
Assistant U.S. Attorney Seth Johnson and Investigator Cathleen Hollowell of the U.S. Attorney’s Office in Charlotte investigated the matter, in conjunction with the Medicaid Investigations Division of the North Carolina Attorney General’s Office and the Office of Inspector General of the United States Department of Health and Human Services.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Federal Jury Convicts Two Methamphetamine TraffickersRead the Press Release
ASHEVILLE, N.C. – A federal jury in Asheville has convicted Keith Ryan Noles, 42, and Tina Jane Hill, 46, both of Marble, N.C., of trafficking methamphetamine and firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Sheriff Dustin D. Smith of the Cherokee County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to filed court documents, trial evidence, and witness testimony, in February 2021, more than eight pounds of methamphetamine was intercepted by law enforcement in Texas. Trial evidence established that law enforcement learned the methamphetamine was intended for Hill and Noles in North Carolina from their source of supply. The jury heard testimony that, between 2020 and 2021, their source of supply or his representative made multiple trips to North Carolina to deliver packages of methamphetamine to Hill and Noles, and to pick up cash payments.
According to trial evidence, after the methamphetamine was intercepted in Texas, law enforcement planned a delivery of the methamphetamine to Hill and Noles as originally planned. Law enforcement arrested Noles soon after he arrived to assist with the delivery of the methamphetamine to his and Hill’s residence in Marble, North Carolina. Law enforcement subsequently arrested Hill at the residence.
The jury found Noles and Hill guilty of conspiracy to distribute and to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. Noles was also convicted of possession of a firearm by a convicted felon. Sentencing hearings for Noles and Hill have not been set.
In making today’s announcement, U.S. Attorney King commended HSI and the Cherokee County Sheriff’s Office for their investigation of the case and thanked the Andrews Police Department and the Graham County Sheriff’s Office for their invaluable assistance.
Assistant U.S. Attorney Christopher Hess and Special Assistant U.S. Attorney Annabelle Chambers of the U.S. Attorney’s Office in Asheville are prosecuting the case. Ms. Chambers is a state prosecutor with the office of the 43rd Prosecutorial District and was assigned by District Attorney Ashley Welch to serve as SAUSA with the U.S. Attorney’s Office in Asheville. Ms. Chambers is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 43rd Prosecutorial District and the United States Attorney’s Office. The SAUSA position helps ensure the effective and vigorous prosecution of federal court cases that impact the counties within the 43rd Prosecutorial District.
Murphy, N.C. Woman Sentenced to 18 Years for Production of Child PornographyRead the Press Release
ASHEVILLE, N.C. – Alyssa Danielle Seabolt, 26, of Murphy, N.C., was sentenced today to 18 years in prison followed by a lifetime of supervised release for production of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also ordered Seabolt to register as a sex offender after she is released from prison.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, joins U.S. Attorney King in making today's announcement.
According to court documents and court proceedings, in 2021, Canadian law enforcement investigating the online trading of child pornography notified HSI about an individual in the United States, later identified as Seabolt, using Snapchat to distribute files depicting the sexual abuse of children. In June 2022, during an interview with HSI agents, Seabolt admitted to producing the child pornography she had shared online.
On April 19, 2022, Seabolt pleaded guilty to using a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct.
U.S. Attorney King commended HSI for their investigation that led to today’s sentence.
Assistant U.S. Attorney Alexis Solheim with 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.
U.S. Attorney's Office to Host Youth Outreach Event in Asheville as Part of Project Safe NeighborhoodsRead the Press Release
ASHEVILLE, N.C. – The U.S. Attorney’s Office will host a youth outreach event in Asheville tomorrow as part of the Justice Department’s Project Safe Neighborhoods (PSN) program, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
The event, titled “An Intersection of Youth and the Criminal Justice System,” is a collaboration between the U.S. Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) , in partnership with My Daddy Taught Me That (MDTMT), a youth development organization based in Asheville that receives federal PSN grants.
Adolescents invited to the event will actively engage with representatives of the federal agencies. The speakers will lead discussions through story-telling and interactive sessions on topics centered on promoting healthy choices, fostering good decision-making, handling peer pressure, developing conflict prevention strategies, and enhancing positive dispute resolution skills. In addition, the event will provide a platform for participating youths to relay personal experiences engaging with law enforcement and share ideas on how to interact with law enforcement in effective, positive, and productive ways.
“Engaging with young people is a key component of our efforts to enhance community safety and develop trust and respect between law enforcement and those we serve,” said U.S. Attorney King. “We are looking forward to connecting with young people and speaking to them directly about how the decisions they make today can impact their future and share ways they can maintain a path to success. We will also share practical tools and skills for safe and effective interactions with law enforcement and what young people can do to help increase safety in their schools and neighborhoods.”
“As law enforcement professionals, it is a privilege to take a moment and share what we’ve learned and experienced in our work to make communities better and safer,” said ATF Special Agent in Charge Bennie Mims. “Our hope is that by highlighting what makes our work so rewarding, we can encourage young people to make the right choices and take the right steps towards a better opportunity.”
“My Daddy Taught Me That is a program designed to uplift and support the development and education of youth and young males,” said MDTMT Founder Keynon Lake. “Our mission is to foster and empower boys to become healthy men, and to develop into the leaders of tomorrow. This is facilitated through education, hands-on activities, and participation in innovative and unique events like this, that will have a positive and long-lasting effect on all those who participate.”
MDTMT is a youth development program designed to support youth through advocacy, education, and mentoring. For more information on MDTMT, please visit https://mydaddytaughtmethat.org/.
Led by the U.S. Attorney’s Office, PSN is a collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to enhance public safety. On May 26, 2021, the Justice Department launched a strategy strengthening PSN, so that it is built on the core principles of 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 of those efforts.
Charlotte Man Pleads Guilty to $300K Wire Fraud Scheme Involving Stolen ChecksRead the Press Release
CHARLOTTE, N.C. – John Calvin Davis, III, 27, of Charlotte, appeared before U.S. Magistrate Judge Susan C. Rodriguez today and pleaded guilty to wire fraud for executing a scheme involving stolen checks, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. King in making today’s announcement.
According to filed plea documents and court proceedings, from August 2022 to January 2023, Davis obtained approximately 50 checks that were stolen from mailboxes in Charlotte. Davis then fraudulently endorsed the stolen checks, deposited the checks into accounts he controlled, and then withdrew the funds before the victims or the bank had an opportunity to determine that the checks were stolen. Through this scheme, Davis fraudulently obtained $304,355.56 in fraudulent proceeds.
Davis was released on bond following the guilty plea. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King thanked the USPIS and CMPD for their investigation of the case.
Assistant U.S. Attorney Cassye Cole of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
U.S. Attorney's Office to Co-Host Panel on Diversifying the Criminal Justice Field at the University of North Carolina at CharlotteRead the Press Release
CHARLOTTE, N.C. – Today, U.S. Attorney Dena J. King will be joined by professionals in the criminal justice field for a panel discussion at the University of North Carolina at Charlotte (UNC Charlotte) on the topic of “Diversifying the Criminal Justice Landscape.”
The event is a collaboration between the U.S. Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Black Law Society of UNC Charlotte, as part of ATF’s “Law Enforcement Leaders of America” (LELA) program, which aims to advance diversity in the criminal justice profession.
“The LELA program is focused on introducing college students to a multitude of career paths within the criminal justice field. The goal of the program is to promote diversity in all areas of criminal justice and foster an inclusive workplace that mirrors the communities we serve,” said U.S. Attorney King. “A diverse workforce, defined not only in terms of race and gender, but also religion, sexual orientation, gender identity, culture, ethnicity, disability, and socioeconomic background, brings a unique understanding and perspective that can help improve public safety and develop creative solutions in our crime reductions efforts. I am looking forward to engaging directly with undergraduate students and stimulating their interest in careers they may not have considered up to this point.”
“Through our LELA program, we’re reaching a number of young candidates early in their job search, highlighting the benefits of public service and encouraging them to consider a very worthwhile career,” said ATF Special Agent in Charge Bennie Mims. “ATF and our partners have held panel discussions with students at colleges and universities across the Carolinas, detailing the many opportunities available in public safety. This field can be both rewarding and challenging, so we gather a diverse and experienced panel to detail the reason they decided to enter public service and the steps they took to overcome the challenges in their way.”
U.S. Attorney King will be joined in this panel discussion by criminal justice professionals representing federal, state and local government agencies, who will share valuable perspectives on career paths, job preparation, and overcoming challenges and roadblocks. College students attending the event will also receive practical information on a broad range of topics related to the hiring process, internship opportunities, and career advancement. Following the panel discussion, students will have an opportunity to ask questions and network with the panelists.
U.S. Attorney King has participated in multiple LELA events held on college campuses throughout North Carolina, primarily at Historically Black Colleges and Universities (HBCUs), including Johnson C. Smith University, Livingstone College, Winston Salem State University, and North Carolina Central University, U.S. Attorney King’s alma mater.
Two Charlotte-Area Businessmen Sentenced to Prison for Fraudulent Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Two Charlotte-area business partners were sentenced to prison late yesterday for executing a fraudulent investment scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Marlin Hershey, 54, of Cornelius, N.C., was sentenced to 21 months in prison followed by two years of supervised release. Dana Bradley, 53, also of Cornelius, was sentenced to 10 months plus one day in prison followed by two years of supervised release. In addition, the court imposed significant restitution and financial penalties on the defendants, including more than $333,000 in restitution to victims and combined forfeiture and fines of more than $600,000.
North Carolina Secretary of State Elaine F. Marshall and Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, join U.S. Attorney King in making today’s announcement.
According to filed documents and court proceedings, from approximately 2009 to 2021, Hershey and Bradley conspired to defraud numerous victims who invested in two unregistered securities offerings promoted by the defendants, Performance Retire on Rentals, LLC (Performance Retire), and Distressed Lending Fund (DLF). To execute the scheme, the defendants provided victims with investment materials that contained false and misleading statements and did not disclose material information. For example, the defendants did not disclose to investors negative information about the defendants’ backgrounds and the financial troubles of the entities for which they were soliciting investments. The defendants also did not inform investors that the defendants received undisclosed “management” fees, and commission-like payments that were typically 10% of the victims’ investments. To further conceal the scheme, the defendants sent to investors periodic performance reports that disclosed false information about the status and health of their investments and made Ponzi-style payments to existing investors using new investors’ money. Eventually, both Performance Retire and DLF failed, causing financial losses to investors.
On June 1, 2023, the defendants pleaded guilty to wire fraud conspiracy. They will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney King thanked the Securities Division of the North Carolina Secretary of State and the FBI for their joint investigation of the case.
Assistant U.S. Attorneys Daniel Ryan and Taylor Stout of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Couple Charged for $2 Million Bank Loan and COVID-19 Relief Fraud SchemesRead the Press Release
CHARLOTTE, N.C. – A federal indictment filed in U.S. District Court in Charlotte charges Antoine Johnson, 48, and Kimberly Maddox, 43, formerly of Huntersville, N.C., currently residing in Georgia, with fraudulently obtaining approximately $2 million in bank loans and COVID-19 pandemic relief funds, 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 allegations in the indictment, the defendants owned and operated Pick Up and Go Moving International, Inc. and affiliated businesses (collectively, PUGMI). Johnson was the president of PUGMI and Maddox the vice president. The indictment alleges that, between 2018 and 2023, the defendants fraudulently obtained multiple lines of credit, bank loans, Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loan (EIDL) program loans on behalf of their businesses totaling approximately $2 million. To secure the loans, the defendants allegedly lied on loan applications about PUGMI’s income, gross revenues, expenses, and number of employees, and submitted fabricated supporting documents that included fraudulent tax returns and fictitious financial statements.
The defendants are charged with conspiracy to commit bank fraud and wire fraud and making false statements to a financial institution and face a maximum penalty of 30 years in prison and a $1 million fine.
The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making the announcement U.S. Attorney King commended the FBI for their investigation of this case.
Assistant U.S. Attorney Cassye Cole of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Charlotte Man Pleads Guilty to Committing Bank Fraud Using Stolen MailRead the Press Release
CHARLOTTE, N.C. – Douglas Gumbs, 38, of Charlotte, appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to committing bank fraud using stolen mail, 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 Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney King in making today’s announcement.
According to filed documents and court proceedings, from February 2022 to April 2023, Gumbs and Soheil Akhavan Rezaie, targeted neighborhoods in Charlotte and surrounding areas and stole large quantities of mail from residential mailboxes. The stolen mail included credit cards, tax forms, financial statements, personal identifying information (PII), and personal and business bank checks. Gumbs used the stolen mail to commit bank fraud by altering the amounts of the stolen checks or changing the names of the payees to his own and then depositing the altered checks into bank accounts he controlled. Gumbs then withdrew the funds before the victims and financial institutions had an opportunity to determine the checks were stolen. Gumbs also admitted to using fraudulent identification to execute the fraud. Over the course of the investigation, Gumbs was found to be in possession of more than 850 pieces of stolen mail that belonged to at least 10 victims.
Gumbs pleaded guilty to bank fraud, which carries a maximum prison term of 30 years and a $1 million fine. Gumbs is currently in custody. A sentencing date has not been set. Rezaie was previously convicted for related conduct and was sentenced to 57 months in prison.
In making today’s announcement, U.S. Attorney King thanked the FBI and USPIS for their investigation of the case.
Assistant U.S. Attorney Caryn Finley, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Each year, the U.S. Postal Service® handles billions of letters and packages, the majority of which arrive safely at their intended destinations. According to USPIS, here are the extra steps the public can take to prevent mail theft and ensure that mail arrives safely at its destination:
- Promptly pick up mail – try not to leave letters and packages in the mailbox or at the door unattended for any length of time.
- Deposit mail close to pick up time – deposit outgoing mail into collection boxes before the last collection or inside the local postal office.
- Inquire about overdue mail – if you have not received valuable or important mail you’re expecting, contact the sender to inquire about it.
- Do not send cash – be careful about what you are sending in the mail. Avoid mailing cash and gift cards.
- Arrange for prompt pick up – if you will not be available to receive a package in person, contact the postal service to hold your package.
- Use the Hold for Pick Up option – when shipping packages, use the Hold for Pick Up option, so the recipients can pick up package at their local post office.
- Request signature confirmation – when mailing important mail, consider requesting a signature confirmation from the recipient.
- File a change of address – when moving, promptly file a change of address with the Postal Service.
To report suspected mail theft, please call USPIS at 1-877-876-2455.
Charlotte Man Pleads Guilty to Committing Bank Fraud Using Stolen MailRead the Press Release
CHARLOTTE, N.C. – Douglas Gumbs, 38, of Charlotte, appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to committing bank fraud using stolen mail, 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 Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney King in making today’s announcement.
According to filed documents and court proceedings, from February 2022 to April 2023, Gumbs and Soheil Akhavan Rezaie, targeted neighborhoods in Charlotte and surrounding areas and stole large quantities of mail from residential mailboxes. The stolen mail included credit cards, tax forms, financial statements, personal identifying information (PII), and personal and business bank checks. Gumbs used the stolen mail to commit bank fraud by altering the amounts of the stolen checks or changing the names of the payees to his own and then depositing the altered checks into bank accounts he controlled. Gumbs then withdrew the funds before the victims and financial institutions had an opportunity to determine the checks were stolen. Gumbs also admitted to using fraudulent identification to execute the fraud. Over the course of the investigation, Gumbs was found to be in possession of more than 850 pieces of stolen mail that belonged to at least 10 victims.
Gumbs pleaded guilty to bank fraud, which carries a maximum prison term of 30 years and a $1 million fine. Gumbs is currently in custody. A sentencing date has not been set. Rezaie was previously convicted for related conduct and was sentenced to 57 months in prison.
In making today’s announcement, U.S. Attorney King thanked the FBI and USPIS for their investigation of the case.
Assistant U.S. Attorney Caryn Finley, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Each year, the U.S. Postal Service® handles billions of letters and packages, the majority of which arrive safely at their intended destinations. According to USPIS, here are the extra steps the public can take to prevent mail theft and ensure that mail arrives safely at its destination:
- Promptly pick up mail – try not to leave letters and packages in the mailbox or at the door unattended for any length of time.
- Deposit mail close to pick up time – deposit outgoing mail into collection boxes before the last collection or inside the local postal office.
- Inquire about overdue mail – if you have not received valuable or important mail you’re expecting, contact the sender to inquire about it.
- Do not send cash – be careful about what you are sending in the mail. Avoid mailing cash and gift cards.
- Arrange for prompt pick up – if you will not be available to receive a package in person, contact the postal service to hold your package.
- Use the Hold for Pick Up option – when shipping packages, use the Hold for Pick Up option, so the recipients can pick up package at their local post office.
- Request signature confirmation – when mailing important mail, consider requesting a signature confirmation from the recipient.
- File a change of address – when moving, promptly file a change of address with the Postal Service.
To report suspected mail theft, please call USPIS at 1-877-876-2455.
Federal Indictment Charges Registered Sex Offender with Production of Child PornographyRead the Press Release
CHARLOTTE, N.C. – A federal grand jury in Charlotte has returned a criminal indictment charging Christopher Porter, 30, a registered sex offender, with production of child pornography and committing a qualifying felony offense 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.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief J. Bryan Gilliard of the Monroe Police Department join U.S. Attorney King in making today’s announcement.
According to allegations in the four-count indictment, between May 28, 2023, and September 6, 2023, Porter produced child pornography by using, inducing, enticing, and coercing a minor to engage in sexually explicit conduct for the purpose of creating a visual depiction of that conduct. The indictment also alleges that Porter committed a felony criminal offense involving a minor while he was required by law to register as a sex offender.
Porter is currently in state custody in Missouri and will be transported to the Western District of North Carolina to appear in court on the federal charges.
Each of the three counts of production of child pornography carries a minimum prison sentence of not less than 15 years and a maximum of 30 years. However, if the defendant has a prior conviction under the laws of any State relating to aggravated sexual abuse, sexual abuse, or abusive sexual contact involving a minor, the minimum prison sentence is 30 years and the maximum is 50 years. The charge of commission of a qualifying felony while being required to register as a sex offender carries a maximum penalty of 10 years in prison consecutive to any other prison term imposed.
The charges contained in the indictment are allegations and the defendant is 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 in Charlotte and the Monroe Police Department for their investigation of the case and thanked the Kirkwood Missouri Police Department, the FBI in St. Louis, and the FBI in Knoxville for their invaluable assistance.
Assistant U.S. Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte is prosecuting 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 https://www.justice.gov/psc.
Charlotte Man Sentenced to 20 Years for Transportation of Child PornographyRead the Press Release
CHARLOTTE, N.C. – Jose Emilio Alvarado Ochoa, 45, of Charlotte, was sentenced to 20 years in prison and 30 years of supervised release today for transportation of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Alvarado Ochoa was also ordered to register as a sex offender after he is released from prison.
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 court documents and evidence presented at the sentencing hearing, from 2018 to 2021, Alvarado Ochoa repeatedly uploaded child pornography to his Dropbox account. Investigators determined that Alvarado Ochoa made some of the child pornography images and videos that he uploaded and that this child pornography depicted Alvarado Ochoa sexually abusing a minor. Alvarado Ochoa also possessed more than 600 child pornography images and videos. At today’s sentencing hearing, the Court granted the government’s request for the maximum 20 year sentence due to the nature and circumstances of Alvarado Ochoa’s offense.
Alvarado Ochoa is 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 commended the FBI and CMPD for their investigation of the case.
Assistant United States Attorney Kimlani Ford 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 https://www.justice.gov/psc.
Charlotte Man Is Sentenced and Fined for Violating the Clean Air ActRead the Press Release
CHARLOTTE, N.C. – Rodolfo Rodriguez, 43, of Charlotte, was sentenced to ten months in prison followed by three years of supervised release today for violating the Clean Air Act, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Rodriguez was also ordered to pay a $302,320 fine and $24,404.60 in restitution to the State of North Carolina.
U.S. Attorney King is joined in making the announcement by Michael Sparks, Special Agent in Charge of the Environmental Protection Agency’s Office of the Inspector General (EPA-OIG), Charles Carfagno, Special Agent in Charge of the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID), and Colonel Michael Oates of the North Carolina Department of Transportation (NCDOT) License and Theft Bureau.
“Vehicle emission standards and testing are in place to protect the health and safety of our communities,” said U.S. Attorney King. “Environmental violations will not be tolerated and polluters will be held accountable for their actions.”
“Mr. Rodriguez was sentenced today for conspiring to violate the Clean Air Act for fraudulent vehicle emissions testing,” said Special Agent-in-Charge Carfagno of EPA’s criminal enforcement program. “The defendant’s criminal activity intentionally increased air pollution in communities where these vehicles operate, further exacerbating respiratory illnesses and environmental degradation. Today’s sentencing serves as a reminder that EPA and our partners are steadfast in our commitment to protect human health and the environment.”
According to court records and today’s court proceedings, from July 2019 to November 2022, Rodriguez fraudulently coded 3,779 vehicles that would have otherwise failed the required State emissions inspection. Rodriguez committed the violations while he was employed at Friendly Auto Repair, and later as the owner and operator of Auto Spa Auto Inspections and More and Tiger Auto Inspections and More, Inc. Court documents show that Rodriguez executed the scheme by falsely changing the information of vehicles that would have otherwise failed the required State emissions testing, so that they were no longer required by the State’s registration system to have a passing emissions test.
According to court documents, in some instances Rodriguez executed the scheme through “county swaps,” by swapping in the system the county of registration for vehicles from a county that required an emissions test to a county where no emissions testing was required. In other instances, Rodriguez did “duty swaps,” by changing the characterization of trucks in the system from light duty trucks, which require emissions inspections, to heavy duty trucks, which do not require such testing. Finally, Rodriguez did “fuel swaps,” by changing the type of fuel used from gas or diesel to electric, thus allowing such vehicles to evade the vehicle emissions testing requirement. In exchange for falsifying vehicle information, Rodriguez received cash payments from customers that far exceeded what customers would have paid to have an emissions inspection. In addition, Rodriguez paid the State of North Carolina only $0.85 per non-emissions/safety inspection, instead of the $6.25 per vehicle charge he should have paid for an inspection.
On June 15, 2023, Rodriguez pleaded guilty to one count of conspiracy to defraud the United States and violate the Clean Air Act, and one count of violating the Clean Air Act. Rodriguez will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the EPA-OIG, EPA-CID, and NC DOT License and Theft Bureau for their coordination and investigation of the case.
Assistant United States Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charlotte Business Owner Is Sentenced to Prison for $720,000 COVID-19 Relief FraudRead the Press Release
CHARLOTTE, N.C. – Evan Agustin Perez, 35, of Charlotte, was sentenced today to 24 months in prison followed by two years of supervised release for obtaining approximately $720,000 in fraudulent Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan Program (EIDL) loans guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Perez was ordered to pay $720,079.82 in restitution to the SBA.
According to court documents and court proceedings, from April 2020 to September 2021, Perez conspired with Edward Whitaker and others in a scheme to defraud the SBA and SBA-backed lenders by obtaining fraudulent COVID-19 disaster relief funds for businesses he controlled or was affiliated with, including Augie’s Wish Foundation; EMP Haircare, LLC; E.M.P. Enterprises, LLC; T.O.P. Salon Suites Inc.; Touch of Precision School of Barbering, Inc.; Touch of Precision Barber Lounge, LLC; and Roads to Success Early Learning Center, LLC. Court documents show that, at the time, Whitaker operated a sham business in Texas known as “Loan Starters,” that assisted people with committing fraud through the creation of fraudulent PPP loan applications and fake supporting documents.
According to court records, Whitaker assisted Perez in preparing and submitting numerous fraudulent applications for coronavirus aid relief loans that contained fabricated information. For example, when he applied for PPP loans, Perez routinely fabricated the number of employees working for his businesses and inflated associated payroll costs, which allowed him to obtain larger PPP loans. Also, with Whitaker’s help, Perez supported the sham PPP applications by submitting fabricated tax documents that contained fraudulent information, including IRS Form 940, Form 941, and Form 1040 Schedule C, that falsely corroborated the inflated monthly payroll disbursements.
As a result of the scheme, Perez received approximately $720,000 in disaster relief funds. Instead of using the money to support his businesses, Perez used the funds for unauthorized purposes and to pay Whitaker for his services. According to court records, after Perez received the relief funds, he then submitted fraudulent loan forgiveness applications for certain PPP loans that also contained fabricated information.
On September 27, 2023, Perez pleaded guilty to conspiracy to commit wire fraud. He will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.
In January 2023, Whitaker pleaded guilty in federal court in the Eastern District of North Carolina to money laundering conspiracy for his role in assisting individuals with obtaining fraudulent coronavirus disaster relief funds.
The SBA’s Office of Inspector General investigated the case. Special Assistant U.S. Attorney Eric A. Frick and Assistant U.S. Attorney Daniel Ryan prosecuted the case.
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To date, the U.S. Attorney’s Office for the Western District of North Carolina has prosecuted 28 individuals for defrauding government funding programs, such as the Unemployment Insurance benefit program, the PPP program, and the EIDL program, that were created or expanded during the pandemic to provide economic relief. These prosecutions have resulted in active prison sentences and the imposition of court-ordered restitution, fees, and fines.
“As the COVID-19 outbreak gripped our nation, the federal government provided emergency financial assistance to millions of Americans and businesses suffering the economic effects of COVID-19,” said U.S. Attorney King. “My Office will continue to partner with agencies across the federal government to combat pandemic-related fraud and bring to justice criminal actors who took advantage of a national emergency to line their own pockets.”
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Armed Methamphetamine Trafficker and Co-Conspirators Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – An armed methamphetamine trafficker and his co-conspirator were sentenced in federal court today, 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 Stephen Zill of the Gaston County Police Department join U.S. Attorney King in making today’s announcement.
Bret Scott Funderburk, 34, of Gastonia, N.C., was sentenced to 15 years in prison followed by five years of supervised release, after he pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine, distribution of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and two counts of possession of a firearm by a convicted felon.
Eric Eugene Allen, 42, of Gastonia, N.C., was sentenced to 10 years in prison followed by five years of supervised release, after he pleaded guilty to two counts of distribution of methamphetamine.
Funderburk’s mother, Melanie Mitchum Funderburk, 55, of Gastonia, N.C., has pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine, and five counts of distribution of methamphetamine, and is currently awaiting sentencing.
According to court documents and court proceedings, from March 2021 to April 2021, Bret Funderburk, Melanie Funderburk, and Eric Allen operated a drug conspiracy and distributed methamphetamine in and around Gaston County. Court records also show that Bret Funderburk sold methamphetamine while he illegally possessed firearms and illegally sold firearms. Specifically, on March 10, 2021, Bret Funderburk engaged in a drug transaction while he illegally possessed a Ruger LC9 pistol, and a stolen Ithaca Model 66 sawed-off shotgun. Over the course of the transaction, Bret Funderburk sold the stolen sawed-off shotgun to another individual. Court documents further show that, on March 30, 2021, Bret Funderburk engaged in another drug transaction, during which he illegally possessed and sold a Taurus PT738.38 caliber pistol. Bret Funderburk has prior criminal convictions and he is prohibited from possessing firearms.
Bret Funderburk and Allen are 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 commended the ATF and the Gaston County Police Department for their investigation of the case.
Assistant U.S. Attorney Matthew Warren of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
“Ghost” Tax Preparer Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Tijan Mboob, a/k/a “TJ,” a/k/a “Teejay McBoob,” a/k/a “Sheikhtijan,” 59, of Charlotte, was sentenced today to 24 months in prison followed by one year of supervised release for tax fraud, announced Dena J. King U.S. Attorney for the Western District of North Carolina.
Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, from 2014 to 2021, Mboob prepared or caused to be prepared hundreds of fraudulent tax returns for clients, that were submitted to the IRS. The tax returns included fabricated and fraudulent items, including false filing status, false American Opportunity and education credits, false itemized deductions, and false reforestation credits, among others. Mboob’s inclusion of the fabricated and fraudulent items resulted in the reduction of his clients’ tax liabilities and inflated refunds totaling more than $4.7 million. Court records show that after Mboob prepared the fraudulent returns, he refused to assist clients who received correspondence from the IRS questioning items on their tax returns that Mboob had prepared and filed.
According to court records, Mboob operated as a “ghost” preparer, because contrary to IRS requirements he failed to identify himself as a paid tax preparer on the tax returns he prepared or submitted for his clients. Court documents further show that Mboob failed to report any of the preparation fees he earned as income for tax years 2017 and 2020, and did not file any tax returns for tax years 2018 and 2019.
On September 21, 2023, Mboob pleaded guilty to aiding and assisting in the preparation and filing of false tax returns. Mboob will be ordered to report to the federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility.
In making today’s announcement U.S. Attorney King thanked IRS-CI for their investigation of the case.
Assistant U.S. Attorneys Cassye Cole and Graham Billings of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
The IRS’s annual Dirty Dozen Tax Scams campaign lists the worst of the worst tax schemes that taxpayers may encounter and typically peak during filing season. To learn more about the Dirty Dozen scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at IRS.gov. Suspected tax fraud can be reported to the IRS using Form 3949-A found on the IRS.gov website. If you have been financially impacted by a tax preparer’s misconduct or improper tax preparation practices you can file a complaint here.
Cocaine Trafficker Is Sentenced to 10+ Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Dante Rashaun Ramseur, 44, of Hickory, North Carolina, was sentenced today to 121 months in prison followed by six years of supervised release on federal drug 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, Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s sentencing hearing, law enforcement conducting an investigation into drug trafficking networks in Catawba County determined that Ramseur was distributing significant quantities of cocaine in the Hickory area. The cocaine was supplied to Ramseur by his co-defendants, Holly Christine Furlough, 31, and Carlos Hernandez Landeiro, 33, both of Charlotte. Court records show that, between September 2022 and January 2023, Ramseur sold cocaine to an undercover officer on multiple occasions. Ramseur was arrested in February 2023, after he attempted to sell six kilograms of cocaine to the undercover officer. During the investigation, Ramseur conducted the drug transactions with the undercover officer throughout the Hickory area, including within 1,000 feet of an elementary school.
At today’s sentencing hearing, the Court determined that Ramseur obstructed justice by intimidating an individual associated with the case. As a result, Ramseur received a sentencing enhancement.
On September 20, 2023, Ramseur pleaded guilty to possession with intent to distribute cocaine within 1,000 feet of an elementary school, conspiracy to possess with intent to distribute a mixture of cocaine, and distribution of cocaine. 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.
Furlough and Landeiro have each pleaded guilty to possession with intent to distribute cocaine and possession with intent to distribute cocaine near a school. A sentencing date for the defendants has not been set.
This case was investigated by a joint Organized Crime Drug Enforcement Task Force (OCDETF) which includes the DEA, the FBI, and the Catawba County Sheriff’s Office. 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.
Assistant U.S. Attorney Regina Pack of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
U.S. Attorney's Office Commemorates Black History MonthRead the Press Release
CHARLOTTE, N.C. – Today, the U.S. Attorney’s Office for the Western District of North Carolina held its annual program to commemorate Black History Month, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King opened the program with welcome remarks and an introduction of this year’s keynote speaker, Dean Patricia Timmons-Goodson of North Carolina Central University’s (NCCU) School of Law.
“For over a decade, the U.S. Attorney’s Office has observed Black History Month to celebrate the profound impact of Black heritage on our nation’s history, culture, and identity, and as a means of raising awareness about the notable contributions and achievements of African Americans in all aspects of our society,” said U.S. Attorney King, who is a graduate of NCCU’s School of Law. “As we gather each year to remember those sung and unsung African American heroes throughout history, it is equally important to recognize and honor individuals within our community, such as Dean Timmons-Goodson, who broke barriers and paved the way for others to follow. Dean Timmons-Goodson serves as an inspiration for all of us, and we are grateful for her willingness to share her memories, wisdom, and life’s journey.”
Dean Timmons-Goodson, who was selected to lead NCCU’s School of Law in 2023, has spent the entirety of her professional career in public service. Appointed to the Supreme Court of North Carolina by former Governor Michael Easley in January 2006, Dean Timmons-Goodson was the fourth woman and the first African American woman to sit on the state’s highest court. The citizens of North Carolina overwhelmingly affirmed her appointment by later electing her to the court. Her retirement from the Supreme Court in 2012, marked the conclusion of 28 years of service in the judiciary of North Carolina.
Former Postal Employee Pleads Guilty to Workers’ Compensation FraudRead the Press Release
CHARLOTTE, N.C. – Johnnie Franklin Sullivan, Sr., 73, of Mooresville, N.C., appeared before U.S. Magistrate Judge Susan C. Rodriguez today and pleaded guilty to workers’ compensation fraud for a job-connected injury, announced Dena J. King, U.S. Attorney for the Western of North Carolina.
Jeff Krafels, Special Agent in Charge of the United States Postal Service, Office of the Inspector General (USPS OIG) for the Mid-Atlantic Area Field Office (MAAFO), which oversees Charlotte, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s plea hearing, Sullivan, Sr. was employed by the U.S. Postal Service as a mail processing clerk in Charlotte. In May 2005, Sullivan, Sr. sustained an injury at work. Later that year, Sullivan, Sr. began to receive workers’ compensation benefits administered by the U.S. Department of Labor’s Office of Workers’ Compensation Programs (OWCP) for employees covered by the Federal Employees’ Compensation Act (FECA). In order to receive and maintain FECA benefits, Sullivan, Sr. was required to submit periodic reports regarding his physical condition and his inability to perform a Postal Service job.
Court documents show that, on multiple occasions, Sullivan, Sr. made false statements and material misrepresentations regarding his physical abilities and medical restrictions. Among the false claims Sullivan, Sr. made was that he was unable to sit for long periods of time, that he could only drive short distances, that he needed to use a cane when he walked, and that he was unable to travel or engage in hobbies and other recreational activities due to his medical condition. As a result of the false statements, over the years Sullivan, Sr. received payments totaling more than $103,261.
According to court records, during the time that Sullivan, Sr. made these false claims, he was posting on social media photos of his many long-distance trips and physically rigorous activities. For example, Sullivan, Sr. posted photos of himself traveling to places in Europe and the United States; walking long distances over different types of terrain; ziplining in Niagara Falls, New York; using surf boards and boogie boards during beach vacations; and participating in shag dancing events.
“For years, Sullivan, Sr. lied about his pain and suffering caused by an on-the-job injury to bilk the federal workers’ compensation program out of thousands of dollars, and used the funds to pay for recreational activities,” said U.S. Attorney King. “When individuals defraud an important program meant to protect injured federal workers, my Office will make sure they are held accountable for their actions.”
“Most postal employees who collect workers’ compensation benefits have legitimate claims. A small percentage, however, abuse the system and cost the Postal Service millions of dollars in fraudulent claims and enforcement costs. Therefore, USPS OIG Special Agents will continue to relentlessly pursue those identified as fraudulently collecting workers’ compensation funds from the Postal Service,” said USPS OIG Special Agent in Charge Krafels.
Sullivan, Sr. pleaded guilty to making a false report in connection with federal compensation benefits and theft of government funds. He was released on bond after the court hearing. A sentencing date has not been set.
The USPS OIG investigated the case. Assistant U.S. Attorney Kenneth M. Smith of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
District Employee Receives the Attorney General's Award for Distinguished ServiceRead the Press Release
CHARLOTTE, N.C. – Attorney General Merrick B. Garland today announced the recipients of the 70th and 71st Attorney General’s Awards, honoring Justice Department employees and others for extraordinary contributions to the enforcement of our nation’s laws. Recipients from both 2022 and 2023 were selected from a group of more than 800 nominees and included litigation teams that have made outstanding contributions in law enforcement.
Among the award recipients was Joshua Ellen, Information Technology Specialist for the Western District of North Carolina. Mr. Ellen was part of a team of Department of Justice employees recognized with The John Marshall Award, the Department’s highest award presented to recipients for contributions and excellence in specialized areas of legal performance.
“Each of today’s recipients has served with distinction, and in so doing, they have enabled the Justice Department to advance its work on behalf of the American people,” said Attorney General Garland. “Their exceptional leadership, heroism, and dedication have benefited people and communities across the country.”
“Today, Joshua Ellen was recognized for his contribution to the Department of Justice’s mission,” said Dena J. King, U.S. Attorney for the Western District of North Carolina. “This award symbolizes Joshua’s skills and dedication as a public servant and his work exemplifies our ongoing commitment to deliver justice and uphold the rule of law.”
Mr. Ellen joined the U.S. Attorney’s Office in the Western District of North Carolina in 2018, as Litigation Support Team Lead. From 2009 to 2018, Mr. Ellen served in the U.S. Attorney’s Office in the District of Columbia as Litigation Technology Specialist and later as Supervisory Litigation Support Specialist. From 2005 to 2009, Mr. Ellen worked as a Management Analyst with the Department of Veterans Affairs, Office of the Inspector General’s Office of Investigations. Most recently, Mr. Ellen was detailed to the U.S. Attorney’s Office in the District of Columbia to serve in the Discovery Unit of the Capitol Siege Section.
Mr. Ellen received his Bachelor of Arts Degree in Criminal Justice and Psychology from the University of Maryland.
In making today’s announcement, U.S. Attorney King congratulated Mr. Ellen for his award and commended him for his lengthy career in public service.
Charlotte Business Owner and Disaster Relief Loan “Consultant ” Pleads Guilty to Federal Charges for $1.2 Million COVID-19 Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Glynn Paul Hubbard, Jr., 46, of Charlotte, pleaded guilty today to wire fraud and money laundering charges for obtaining more than $1.2 million in fraudulent COVID-19 relief funds for himself and his customers, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Donald "Trey" Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
According to filed plea documents, from March 31, 2020, to August 1, 2020, Hubbard, Jr. submitted fraudulent Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan (EIDL) Program loan applications to the U.S. Small Business Administration (SBA) and SBA-approved lenders, seeking to obtain relief funds for himself and for other businesses, which Hubbard, Jr. referred to as “customers.” To obtain the relief funds for himself and his customers, Hubbard, Jr. falsified the loan applications and supporting documentation by including false financial information, fake employment data, and fraudulent tax returns. Of the $1.2 million in relief funds disbursed as a result of the scheme, Hubbard, Jr. received more than $570,000 for himself, and over $660,000 was disbursed to his customers.
According to court records, Hubbard, Jr. promoted the fraudulent scheme through personal referrals and in social media posts where he advertised that he was a PPP loan/EIDL consultant. Hubbard, Jr. received improper loan preparer fees for his consulting services totaling more than $150,000. To avoid detection, Hubbard, Jr. required customers to pay his fees in cash, via cashier’s checks, or wire transfers.
Following the plea hearing, Hubbard, Jr. was released on bond. The wire fraud charge carries a maximum prison sentence of 20 years. The maximum statutory penalty for the money laundering offense is 10 years in prison. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King thanked IRS-CI for their investigative work in the case.
Assistant U.S. Attorneys Caryn Finley and Cassye Cole with the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with U.S. Attorneys’ Offices and agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
During National Human Trafficking Prevention Month, U.S. Attorney Dena J. King Emphasizes the Importance of Education, Outreach, and Community Partnerships to Disrupt Criminal Activity and Assist SurvivorsRead the Press Release
CHARLOTTE, N.C. – As National Human Trafficking Prevention Month draws to a close, U.S. Attorney Dena J. King continues to highlight the importance of education and outreach in the prevention, identification, and disruption of human trafficking activity, and commends community organizations for their partnership and provision of trauma-informed services to trafficking victims and survivors.
“We simply cannot, and will not, live in a society where human trafficking is allowed to happen,” said U.S. Attorney King this morning during a human trafficking awareness event hosted by Present Age Ministries, an organization dedicated to the prevention of the sex trafficking of minors. Present Age Ministries is also a member of the Charlotte Metro Human Trafficking Task Force, a coalition of law enforcement, prosecutors, and service providers committed to supporting survivors and eliminating the crime of human trafficking through prevention and intervention strategies.
“It is important to bring this sinister crime out of the shadows – where it thrives – and into the forefront – where it belongs – where we can learn about it, understand it, and educate others, so together we can fight against it,” U.S. Attorney King expressed in her remarks, and noted her Office’s renewed commitment to eradicating human trafficking by partnering with law enforcement agencies and the community to bring traffickers to justice, protect victims, and empower survivors.
To further those efforts, the U.S. Attorney’s Office has a team of experienced prosecutors and personnel that handle human trafficking cases. A federal prosecutor also serves as the Western District’s Human Trafficking Coordinator, and works closely with the Office’s Victim Witness Assistance Unit to ensure that the rights and needs of trafficking victims remain central throughout the investigation and prosecution of each case. The Victim Witness Assistance Unit also partners with the Charlotte Metro Human Trafficking Task Force and other non-governmental organizations and service providers to ensure that appropriate trauma-informed care and resources are made available to rescued trafficking victims and survivors.
“Brokering relationships and building strategic partnerships at the local, state, and federal level is vital to creating a network of resources that can provide holistic support to victims of human trafficking,” said U.S. Attorney King. “I want to thank all the partner agencies, public and private, for their dedication to eradicating human trafficking and for sharing their resources, insights, and understanding of victim-centered care. Their work helps us better-serve victims and bring traffickers to justice.”
The U.S. Attorney’s Office is also committed to raising awareness by educating the public on how to identify signs of human trafficking and where to report suspected trafficking activity.
While there are no defining characteristics of a human trafficking situation, recognizing the signs, or indicators, is the first step in identifying this crime. The presence of one or more of the red flags below may signal a human trafficking situation that should be reported:
- Limited freedom – trafficking victims may have security measures in their work and/or living locations, their movements are monitored, or they are not free to come and go as they please.
- Lack of control – trafficking victims may have few or no personal possessions, are not in control of their money, owe a suspiciously large debt to an employer and are unable to pay it off, do not possess their identification documents and personal records, appear fearful, are unable or unwilling to communicate freely, and when they do, their answers seems scripted or rehearsed.
- Suspicious/Unsafe working conditions – trafficking victims may work excessively long hours with no breaks and under poor conditions, show signs of physical abuse, appear deprived of food, water, sleep, or medical care, and are under 18-years-old and engaged in commercial sex.
If you encounter a potential trafficking situation and can communicate with a suspected victim without jeopardizing the victim’s safety, the following questions may assist in determining if someone is in a trafficking situation:
- Has someone hurt you/do you need help?
- Are you safe/scared?
- Where do you sleep and eat?
- Are you able to come and go as you please?
- Have you been hurt or threatened with violence if you attempted to leave?
- Has the safety of your family been threatened?
- Do you live with your employer?
- Can you leave the job if you want to?
- Do you owe a debt to your employer?
- Do you have your passport/identification? If not, who has it?
If you believe you are the victim of human trafficking or have information about a potential trafficking situation, call the National Human Trafficking Hotline at 1-888-373-7888. Specialists are available to answer calls 24 hours a day, seven days a week. You can also send a text to 233733 or submit a tip online. You can also contact the Charlotte Office of the FBI at 704-672-6100, or your local law enforcement agency.
To further enhance awareness and educate the community about human trafficking, the U.S. Attorney’s Office also has released a Public Service Announcement on how to identify potential trafficking situations and where to report suspected human trafficking activity.
Methamphetamine Trafficker Is Sentenced to 11+ Years in PrisonRead the Press Release
ASHEVILLE, N.C. – James Leon Massey, 52, of Whittier, N.C., was sentenced to 139 months in prison today followed by five years of supervised release for possession with intent to distribute methamphetamine, 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, Sheriff Doug Farmer of the Jackson County Sheriff’s Office, and Chief Chris Hatton of the Sylva Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, on April 1, 2022, at approximately 10:01 p.m., law enforcement conducted a traffic stop of a car driven by Massey for a motor vehicle violation. After stopping the vehicle, law enforcement determined that Massey was driving with a suspended license. Court documents show that over the course of the traffic stop law enforcement conducted a search of Massey’s vehicle. During the search, law enforcement located in the back area of the vehicle’s floorboard a plastic container that contained approximately a kilogram of methamphetamine.
On March 27, 2023, Massey pleaded guilty to possession with intent to distribute methamphetamine. Massey remains 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 thanked the DEA, the Jackson County Sheriff’s Office, and the Sylva Police Department for their investigation of the case.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville handled the prosecution.
Hickory, N.C. Business Owner Pleads Guilty to Tax and Credit Card FraudRead the Press Release
CHARLOTTE, N.C. – James Christopher Robinson, 51, of Granite Falls, N.C., appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to federal charges for tax and credit card fraud, 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, Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Donald "Trey" Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRC-CI), Charlotte Field Office, join U.S. Attorney King in making today's announcement.
According to filed plea documents and today’s court hearing, Robinson was the owner of multiple cabinet manufacturing and retail businesses in the Hickory area, including Cabinet Solutions USA Inc., Best Cabinet Doors, LLC, Cabinet Doors Fast, LLC, and Cox Manufacturing, LLC (collectively, Cabinet Companies). As Robinson admitted in court today, between March 2020 and April 2023, Robinson accessed the credit cards of Cabinet Companies’ customers and without authorization made 294 fraudulent credit card charges totaling approximately $1 million. Robinson also created at least four counterfeit checks totaling more than $93,000, using information from actual checks written to his Cabinet Companies by customers.
Plea documents also show that for tax years 2017 to 2022, Robinson caused two of his companies to fail to comply with their employment tax obligations by failing to timely account for and pay over more than $3.1 million in employment taxes. Court documents indicate that Robinson used the stolen funds to make large cash withdrawals from his business accounts and make hundreds of thousands of dollars in cash deposits at casinos.
Robinson pleaded guilty to access device fraud, which carries a maximum penalty of 15 years in prison, and failure to truthfully account for and pay over trust fund taxes which carries a maximum penalty of five years in prison. Robinson is released on bond. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King thanked the FBI, the Secret Service, and IRC-CI for their investigation of the case.
Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Virginia Man Is Sentenced to 17.5 Years for Traveling to North Carolina to Engage in Sexual Activity with A MinorRead the Press Release
ASHEVILLE, N.C. – Today, James Edward Whisenant, Jr., 50, of Suffolk, Virginia, was sentenced to 210 months in prison followed by a lifetime of supervised release for traveling to Western North Carolina to engage in illicit sexual conduct, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered Whisenant to register as a sex offender after he is released from prison and to pay restitution in the amount of $39,500.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina joins U.S. Attorney King in making today's announcement.
According to court documents and court proceedings, in March 2022, Whisenant began communicating with undercover agents expressing an interest in engaging in illicit sexual acts with a minor female child. On May 27, 2022, Whisenant traveled from his home in Virginia to the Western District of North Carolina for the purpose of engaging in sexual acts with a female toddler and was subsequently arrested. Law enforcement conduced a forensic analysis of Whisenant’s electronic items seized as part of the investigation and recovered hundreds of images and videos containing child pornography.
On November 30, 2022, Whisenant pleaded guilty to travel with intent to engage in illicit sexual conduct.
U.S. Attorney King credited HSI with the investigation leading to today’s sentence.
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.