Western District of North Carolina
Press releases recorded for this federal judicial district.
U.S. Postal Worker Is Indicted for Stealing Business Checks Worth over $1.9 Million from Ballantyne Post OfficeRead the Press Release
CHARLOTTE, N.C. – A federal indictment was unsealed today in federal court, charging Dontavis Romario Truesdale, 27, of Charlotte, with conspiracy to commit financial institution fraud and theft of mail by a postal employee, announced Dena J. King, U.S. Attorney for the Western District 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), 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 join U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, from November 2022 to April 2023, Truesdale worked as a processing clerk at the Ballantyne Post Office in Charlotte. The indictment alleges that Truesdale used his position as mail processing clerk to steal hundreds of checks of businesses that maintained post office boxes at the Ballantyne Post Office. The indictment further alleges that Truesdale sold the stolen checks to other co-conspirators who committed bank fraud, by depositing the stolen checks into bank accounts they controlled, and then quickly removed the funds before the banks detected the fraud. As alleged in the indictment, over the course of the scheme, Truesdale stole more than 200 checks with a total face value of over $1.9 million.
Truesdale was released on bond following his initial appearance in court. The bank fraud conspiracy charge carries a maximum penalty of 30 years in prison. The charge of theft by a postal employee has a statutory maximum penalty of five years in prison for each of the five counts charged in the indictment.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King thanked USPS-OIG, USPIS and CMPD for their investigation which led to the charges.
Assistant U.S. Attorney Jenny G. Sugar with the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Former NASCAR Team Owner Is Indicted on Federal ChargesRead the Press Release
CHARLOTTE, N.C. – Federal charges have been filed against a former NASCAR team owner, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. A Charlotte grand jury returned a bill of indictment, charging Ronald Devine, 67, of Burke, Virginia, with four counts of failure to pay payroll taxes.
Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), 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 allegations in the indictment, Devine was the owner and President of BK Racing, LLC (BK Racing), which operated a NASCAR racing team and owned two NASCAR charters. As BK Racing’s owner, Devine exercised control over BK Racing’s financial affairs, including having sole signature authority and control over BK Racing’s bank accounts, directing and
authorizing payment of BK Racing’s bills, and authorizing the filing and payment of BK Racing’s trust fund taxes, commonly referred to as payroll taxes.
Payroll taxes are withheld from employees’ gross pay and are used by the government to fund Social Security and Medicare, and also include the income taxes withheld from the employees’ paychecks. Employers are also required to make contributions to trust fund taxes matching the amounts withheld from their employees’ pay, and to file quarterly an Employer’s Quarterly Federal Tax Return, Form 941, indicating payment of the relevant taxes.
The indictment alleges that, starting in 2012, Devine caused BK Racing to fail to account for and pay over hundreds of thousands of dollars in payroll taxes. For example, according to the indictment, in 2017, Devine allegedly failed to pay over more than $390,000 in payroll taxes due to the IRS. The indictment further alleges that, between 2012 and 2017, instead of using the funds held in trust to pay for payroll taxes due, Devine transferred more than $2 million to other businesses and entities that he owned and controlled and used some of the funds to pay for BK Racing’s expenses such as rent, utilities, and vendor bills.
Devine will have his initial appearance in federal court in Charlotte. The charge of failure to truthfully account for and pay over trust fund taxes carries a maximum penalty of five years in prison and a $250,000 fine for each of the four counts in the indictment.
The charges against Devine are allegations and the defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King commended IRS-CI, the FBI, and USPIS for their investigation of the case.
Assistant U.S. Attorneys Caryn Finley and Daniel Ryan of the Office in Charlotte are prosecuting the case.
Charlotte Woman Pleads Guilty to Producing Fake DocumentsRead the Press Release
CHARLOTTE, N.C. – Chaiya Maley-Jackson, 23, of Charlotte, pleaded guilty today to unlawful production of a false identification document, 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 information to which Maley-Jackson pleaded guilty, other documents filed in this case and statements made in court, as early as January 2020, Maley-Jackson was the owner and operator of Diva Documents/CPN Services (Diva Documents). Diva Documents advertised the sale of false and fraudulent documents on Facebook as well as two websites, divadocuments.com and divadocuments.onuniverse.com. Court documents show that Maley-Jackson used her personal Facebook page under the name Yaya Flowers to advertise the types of documents she could produce and a pricelist for the fake documents. The documents listed on the document pricelist that Maley-Jackson could produce and transfer included paystubs, lease agreements, COVID-19 hardship letters, bank statements, W2 forms, Social Security Cards, and driver’s licenses, both digital and hard copies, among others. The prices for the fake documents ranged from $15 to edit a paystub to $150 for a hard copy of a driver’s license. Maley-Jackson required customers to pay half of the payment upfront and the balance upon completion of the fabricated documents.
According to court documents, Maley-Jackson was aware that she was producing and transferring fake documents and knew that customers would use the fake documents for PPP loan applications, car loan applications, and apartment rentals, among others. Maley-Jackson admitted that between January 2020 and August 2022, she created at least 400 Social Security Cards, eight driver’s licenses, and six COVID vaccine cards, and earned more than $320,000 in fees from producing, selling and transferring false documents.
Maley-Jackson was released on bond after her plea hearing. The maximum statutory penalty for the charge of unlawful production of a false identification document is 15 years in prison. A sentencing date has not been set.
The FBI in Charlotte investigated the case. Assistant U.S. Attorney Caryn Finley is 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.
Bookkeeper Pleads Guilty to Wire Fraud for $1.6 Million Embezzlement SchemeRead the Press Release
CHARLOTTE, N.C. – Marc Weiss, 48, of Charlotte, appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to wire fraud, for embezzling approximately $1.6 million from two companies, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Jason Byrne, Special Agent in Charge of the United States Secret Service, Charlotte Field Office and Sheriff Darren Campbell of the Iredell County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s plea hearing, 2016 to 2022, Weiss engaged in a scheme to defraud two Mooresville, N.C. companies, where he was employed as a bookkeeper. Over the course of the scheme, Weiss abused his position and access to the companies’ financial accounts to make more than 120 fraudulent transfers totaling $1.6 million from the companies’ accounts into bank accounts under Weiss’s control. To disguise the fraud, Weiss created fake entries in the victim companies’ books and records, categorizing the fraudulent transfers as payments to existing vendors for software development, and advertising and marketing expenses.
As Weiss admitted in court today, he generally used the embezzled funds to pay for personal expenses, including to pay for a luxury apartment in Charlotte, to make payments for high-end vehicles, and to pay for travel and vacations.
Weiss was released on bond following today’s plea hearing. The wire fraud charge carries a maximum penalty of 20 years in prison. A sentencing date for Weiss has not been set.
In making today’s announcement, U.S. Attorney King thanked the U.S. Secret Service and the Iredell County Sheriff’s Office 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.
Armed Man Arrested for Attempted Kidnapping on the Blue Ridge Parkway Is Indicted by A Federal Grand JuryRead the Press Release
CHARLOTTE, N.C. – A Whittier, N.C., man arrested on a federal complaint for attempted kidnapping on the Blue Ridge Parkway has been formally charged by a grand jury in Charlotte, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The indictment charges Evan William Blankenship, 22, with kidnapping, two counts of assault with intent to commit a felony, two counts of assault with a dangerous weapon with intent to do bodily harm, and possession and discharge of a firearm in furtherance of a crime of violence.
Debra A. Flowers, Acting Chief Ranger of the Blue Ridge Parkway, joins U.S. Attorney King in making today’s announcement.
According to allegations in the indictment and information contained in the affidavit filed with the criminal complaint, in the early morning hours of September 28, 2023, L.P. and a second victim, L.M., were sitting in a parked vehicle at Water Rock Knob Overlook off the Blue Ridge Parkway. The affidavit alleges that Blankenship drove his vehicle to where the victims were located and pointed a semi-automatic pistol at them. Blankenship tried to pull L.P. out of the vehicle by the hair and arm. Over the course of the incident, Blankenship allegedly threatened to hurt both victims, and hit L.P. in the face causing her temporary hearing loss. Blankenship also allegedly fired his firearm into the air, before pointing it again at the victims.
According to allegations in the affidavit, L.M. eventually convinced Blankenship to let them go. Shortly thereafter, the victims reported the incident to law enforcement. L.P. told investigators that she knew Blankenship through Snapchat and believed Blankenship had used Snapchat’s location sharing feature to find her on the Blue Ridge Parkway.
Blankenship was arrested on October 11, 2023, and remains in federal custody. The charge of kidnapping carries a maximum penalty of life in prison. Each assault charge carries a maximum statutory penalty of 10 years in prison. The charge of possession and discharge of a firearm in furtherance of a crime of violence carries a minimum sentence of 10 years and a maximum of life in prison. The actual sentence of the defendant will be determined by the court based on the federal sentencing guidelines and other applicable statutory factors.
The charges against Blankenship are allegations and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King thanked the National Park Service for the investigation which led to the charges and the Jackson County Sheriff’s Office for their assistance with the case.
The U.S. Attorney’s Office in Asheville is prosecuting the case.
U.S. Attorney's Office Recognizes Law Enforcement, Community Partners, and Citizens for Outstanding AchievementsRead the Press Release
CHARLOTTE, N.C. – Today, U.S. Attorney Dena J. King hosted the Western District’s Excellence in the Pursuit of Justice award ceremony, recognizing federal, state, local and Tribal law enforcement, community partners, and citizens for their significant contributions to the mission of the Department of Justice, and for their commitment to protecting the people of the Western District of North Carolina.
“It is an honor to recognize the remarkable men and women in law enforcement for going above and beyond the call of duty to protect our communities and to hold wrongdoers accountable for their actions,” said U.S. Attorney King. “A career in law enforcement is not for the faint of heart. Those who wear the badge understand what it means to live a life of service, despite the significant dangers and challenges that come with the job. I congratulate the recipients for this well-deserved recognition. I am grateful for their outstanding efforts to ensure public safety and for serving the people of the Western District of North Carolina with integrity and excellence. I also thank our community partners and citizens who were recognized today for their contributions to my Office’s efforts to promote important programs and initiatives that promote safety, access to justice, and strengthen our ties with the people we serve.”
The following law enforcement professionals were recognized in the Outstanding Case category, for their work as an investigative team and their exemplary performance in cases handled by the U.S. Attorney’s Office:
Paul M. Engler - FBI
William J. Gang, II – FBI
Corey S. Zachman – FBI
United States v. Victoria Irby
Sonia Escobedo – Asheville Police Department/DEA
Jonathan Morgan – Asheville Police Department
United States v. Megan Tate
Steve Davis – Jackson County Sheriff’s Office
Brandon Elders – Cherokee Indian Police Department
David Lovedahl – DEA Task Force Officer
Daniel Peoples (Ret.) – Jackson County Sheriff’s Office
Christy Sims – Jackson County Sheriff’s Office
United States v. Martin Medina
Kevin Lau – Bureau of Indian Affairs/DEA
Cody McKinney – Cherokee Indian Police Department
Jesse Ramirez, II – Cherokee Indian Police Department
Jeff Smith – Cherokee Indian Police Department
United States v. Markuetric Stringfellow & Related Cases
John Carrothers – FBI
Michael T. Dixon – FBI
Nick Pompei – IRS-Criminal Investigation
United States v. Vincent Deritis
Timothy Bradley – Homeland Security Investigations
Mathew Rogers – Hickory Police Department
Marisa Rogers – Hickory Police Department
United States v. Hamzeh Alasfar, et al. & U.S. v. Rami Mhana
Matt Hayes – United States Secret Service
David Jester – Charlotte Mecklenburg Police Department
Jeff King –Charlotte Mecklenburg Police DepartmentMatthew Mescan – Charlotte Mecklenburg Police Department
United States v. Daneon Hanson et. al.
Brianna Ballard – Charlotte Mecklenburg Police Department
Everette Berry – Charlotte Mecklenburg Police Department
Jordan Buehler – Charlotte Mecklenburg Police Department
Peter Carbonaro – Charlotte Mecklenburg Police Department
Stephen Cuccaro – FBI
Luke Donahue – Charlotte Mecklenburg Police Department
Daniel Federowicz – Charlotte Mecklenburg Police Department
Jessica Frank – Charlotte Mecklenburg Police Department
Matthew Grimsley - Charlotte Mecklenburg Police Department
Todd Hepner – Charlotte Mecklenburg Police Department
Matthew Irmscher – FBI
Nicholas Krause – Charlotte Mecklenburg Police Department
David Lopez – Charlotte Mecklenburg Police Department
Richard Migliara – FBI
Dennis Miller – Charlotte Mecklenburg Police Department
Douglas Moore – Charlotte Mecklenburg Police Department
Kaiti Mrak – Charlotte Mecklenburg Police Department
Jennifer Nisavic – Charlotte Mecklenburg Police Department
Katherine Sabino – FBI
Michael W. Sardelis – Charlotte Mecklenburg Police Department
Crystal Schwarte – FBI
Shawn Stegal – Charlotte Mecklenburg Police Department
Tristan Stewart – FBI
Megan Thueme – FBI
Andrea Wilson – Charlotte Mecklenburg Police Department
The following recipients were selected to receive the Outstanding Individual Performance award for their exemplary contributions to multiple cases prosecuted by the U.S. Attorney’s Office:
Carter N. Catlett – U.S. Small Business Administration
Aleta Dunbar - Charlotte Mecklenburg Police Department
John R. Ireland – FBI
Kathryn L. Swinkey – FBI
Michael W. Sardelis – Charlotte Mecklenburg Police Department
Steven M. Webster – U.S. Department of Treasury
This year, the U.S. Attorney’s Office presented Ms. Tiffany Canonica and Ms. Hannah Arrowood with the Outstanding Citizen Award for their contributions in cases prosecuted by the U.S. Attorney’s Office, and recognized Beasley Media Group and Helpmate, Inc. with the Outstanding Community Partner award for their work with the U.S. Attorney’s Office in promoting Department of Justice programs and initiatives.
U.S. Attorney King thanked the awardees for their distinctive efforts and their dedication to pursuing justice while working together to build public trust and keep our communities safe.
U.S. Attorney's Office Observes Domestic Violence Awareness MonthRead the Press Release
CHARLOTTE, N.C. – October marks the observance of Domestic Violence Awareness Month (DVAM). U.S. Attorney Dena J. King joins the U.S. Department of Justice in commemorating DVAM, paying tribute to victims and survivors, and saluting the dedication of advocates, service providers, justice professionals, law enforcement officers, and first responders who tirelessly work in support of survivors.
“Domestic violence, dating violence, and intimate partner violence is a recurring pattern of abuse in relationships, that can have a long-lasting impact on victims and survivors,” said U.S. Attorney King. “We want our community to know that we are here to support victims and survivors not just in October, but every month. My Office will continue to be actively engaged with the community we serve to address, respond to, and prevent future domestic violence and bring offenders to justice.”
Today, U.S. Attorney King attended Safe Alliance’s “Breakfast of Hope,” an event held annually to raise awareness about domestic violence and sexual assault. Safe Alliance is an organization that provides support to domestic violence and sexual assault victims in the greater Charlotte area, and client-focused services on housing, court assistance, sexual trauma resources, counseling for individuals, couples, and families, and support groups for adult and teen survivors of domestic violence and sexual assault.
Safe Alliance President and CEO, Laura Lawrence, noted, “The epidemic of domestic violence impacts Charlotte-Mecklenburg in countless ways each day but, by partnering during DVAM and all year long, we can make a difference. Safe Alliance is honored to work alongside U.S. Attorney King’s office supporting survivors and holding offenders accountable in order to build a safer community.”
DVAM provides an opportunity to spread awareness about domestic violence and encourage everyone to play a role in ending gender-based violence. According to the National Domestic Violence Hotline, approximately one in four women and one in seven men will experience severe domestic violence in their lifetimes; however, rates are disproportionately higher for American Indian and Alaska Native populations, women of Color, lesbian, gay, bisexual, transgender, queer, intersex, and two-spirit people, and people with disabilities.
To understand more about domestic violence, visit: https://www.justice.gov/ovw/domestic-violence#dv.
If you require immediate help, please call the National Domestic Violence Hotline at 1-800-799-7233 or Strong Hearts Native Helpline at 1-844-762-8483.
Weaverville, N.C. Man Indicted for Attempted Murder of U.S. Postal Carrier and Related ChargesRead the Press Release
ASHEVILLE, N.C. – A Weaverville, N.C. man has been indicted for the attempted murder of a U.S. Postal Carrier and related charges, 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, joins U.S. Attorney King in making today's announcement.
A federal grand jury sitting in Asheville returned a four-count criminal indictment against Jaden Isaiah Garay, 24, charging him with attempted murder of a United States Postal Service Rural Mail Carrier, carjacking, assault on a mail carrier, and use of a firearm during a crime of violence.
According to allegations in the indictment, on September 5, 2023, in Madison County, Garay unlawfully attempted to kill T.R., a United States Postal Service Rural Mail Carrier. The indictment further alleges that Garay carjacked T.R.’s vehicle, assaulted T.R. while she was performing her official duties, and put the victim’s life in jeopardy using a dangerous weapon. The indictment also alleges that Garay did carry and use a 9mm semiautomatic pistol, and that the firearm discharged during and in relation to crimes of violence, that being attempted murder and carjacking.
A federal arrest warrant has been issued for Garay to appear in federal court in Asheville on the federal charges. Garay is currently in the custody of the Madison County Sheriff’s Office.
The charges against Garay are allegations and the defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The charge of attempted murder carries a maximum penalty of 20 years in prison. The statutory maximum prison term for the carjacking charge and the assault on a mail carrier charge is 25 years in prison for each offense. The charge of use of a firearm during a crime of violence carries a minimum penalty of 10 years in prison and maximum penalty of life in prison.
In making today's announcement, U.S. Attorney King commended the USPIS, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the U.S. Marshals Service, the North Carolina Department of Correction K9 Team, the North Carolina Highway Patrol, the North Carolina State Bureau of Investigation, the Burke County Sheriff’s Office, Burke County EMS, Burke County Emergency Management, and Burke County Communications Center, the Caldwell County Sheriff’s Office, the Catawba County Sheriff’s Office, the Madison County Sheriff’s Office, the McDowell County Sheriff’s Office, the Morganton Department of Public Safety, the Marion Police Department, and the Mars Hill Police Department for their investigation of the case and for their invaluable assistance in apprehending Garay. U.S. Attorney King also thanked Madison County District Attorney Seth Banks for his Office’s assistance and coordination with the federal investigation.
The U.S. Attorney’s Office in Asheville is prosecuting the case.
Twice-Convicted Felon Indicted on Drug and Gun ChargesRead the Press Release
ASHEVILLE, N.C. – A twice federally-convicted man is facing new federal drug trafficking and firearms charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Brian Mein, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Sheriff Lowell S. Griffin of the Henderson County Sheriff's Office join U.S. Attorney King in making today’s announcement.
According to court documents and court records, Douglas Aaron Holcomb, 31, of Brevard, N.C., was released from federal custody on June 20, 2023, after serving a term of imprisonment for possession of ammunition by a convicted felon, and he began to serve a term of court-ordered supervised release. The indictment alleges that, on June 27, 2023, in Henderson County, while Holcomb was on supervised release, he possessed with intent to distribute a quantity of methamphetamine. The indictment also alleges that Holcombe illegally possessed a .45 caliber semiautomatic pistol and 51 rounds of ammunition, and that he possessed the firearm and the ammunition in furtherance of his drug trafficking activities.
The charges against Holcomb are allegations and the defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The charge of possession with intent to distribute methamphetamine carries a mandatory minimum prison sentence of 10 years in prison and a maximum of life in prison. The charge of possession of a firearm in furtherance of a drug trafficking crime carries a sentence of at least five years in prison up to life in prison, to be served consecutive to any other sentence imposed. The charge of possession of a firearm by a convicted felon carries a maximum sentence of 15 years in prison.
In addition to the 2020 federal conviction, Holcomb was convicted in 2016 of federal firearms offenses, that being unlawful possession of a firearm and ammunition while being a fugitive from justice, and possession of a firearm and ammunition while being an unlawful user of a controlled substance.
In making today’s announcement, U.S. Attorney King thanked the ATF and the Henderson County Sheriff’s Office for their investigation of the case.
The U.S. Attorney’s Office in Asheville is prosecuting the case.
Office Manager of Senior Assisted Living Facility Charged for $1.5 Million Embezzlement SchemeRead the Press Release
ASHEVILLE, N.C. – Amy Elizabeth Curry, 46, of Waynesville, N.C., has been charged with wire fraud and money laundering, for allegedly embezzling at least $1.5 million from a senior assisted living facility, 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) in North Carolina, joins U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, from December 7, 2022, to April 4, 2023, Curry executed a scheme to defraud and embezzle at least $1.5 million from Silver Bluff, LLC (Silver Bluff), a senior living and care facility in Canton, N.C. As alleged in the indictment, Curry worked at Silver Bluff from July 2022 through April 2023, as the facility’s office manager and bookkeeper. As part of her duties, Curry had access to and control over Silver Bluff’s bank accounts and accounting records. The indictment alleges that, during a five-month period, Curry made at least 154 unauthorized bank transfers, and defrauded Silver Bluff by transferring at least $1.5 million from the facility’s bank accounts to bank accounts controlled by Curry and her then-boyfriend J.C. The indictment also alleges that in March 2023, Curry purchased a 2020 Ford F-150 pick-up truck, using funds derived from the embezzlement of Silver Bluff.
In addition to the charges, the indictment also contains a notice of forfeiture, which gives notice that the defendant must forfeit to the United States all of the property, currency and monetary instruments involved in the offenses charged in the indictment. The government will pursue a forfeiture money judgment in the amount of at least $1,518,771, which the government contends constitutes the proceeds of the violations alleged in the charging document. Also subject to forfeiture proceedings are items seized during the investigation, including four vehicles (a 2023 Polaris, a 2023 Nissan Maxima, a 2020 Ford F-150, and a 2020 Kia Optima), and $117,867.49 seized from four bank accounts.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
The wire fraud charge carries a maximum penalty of 20 years in prison. The money laundering offense carries a maximum penalty of 10 years in prison.
In making today’s announcement, U.S. Attorney King thanked the FBI and the Haywood County Sheriff’s Office for their investigation of the case.
The U.S. Attorney’s Office in Asheville is in charge of Curry’s prosecution.
U.S. Attorney's Office Announces Nearly $16.5 Million in Federal Grants Awarded to Western District of North Carolina to Support Community SafetyRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that $16,470,958 in federal grants has been allocated to the Western District of North Carolina to support public safety and community justice initiatives. The grants are part of the $4.4 billion in funding awarded by the Justice Department’s Office of Justice Programs (OJP), to help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies.
“Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.”
From, Dena J. King, United States Attorney“Federal grants are critical to support my Office’s efforts to increase and restore the health and safety of communities throughout the Western District of North Carolina. Federal funding supports comprehensive public safety solutions tailored to each community’s unique needs, and ensures that local governments and law enforcement have the tools and resources they need to do their jobs effectively.”
The more than 3,700 OJP grants being awarded this fiscal year will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.
In the Western District of North Carolina, nearly $9 million has been awarded under OJP’s Bureau of Justice Assistance (BJA) to the cities of Asheville, Boone, Charlotte (and Mecklenburg County), Gastonia (and Gaston County), Monroe, Morganton, Newton, Shelby, and Statesville. BJA provides leadership and assistance to local criminal justice programs that improve and reinforce the nation’s criminal justice system. BJA’s goals are to reduce and prevent crime, violence, and drug abuse and to improve the way in which the criminal justice system functions. BJA funding announcements are posted at: https://www.bja.gov/funding.aspx.
In addition, more than $6.5 million has been awarded to the City of Newton and the National Association of Police Athletic/Activities Leagues, Inc. (National PAL) in Charlotte under OJP’s Office of Juvenile Justice and Delinquency Prevention (OJJDP). A component of the OJP within the Department of Justice, OJJDP works to prevent and respond to youth delinquency and protect children by sponsoring research, program, and training initiatives, disseminating information about juvenile justice issues, and awarding funds to support local programming. OJJDP funding announcements are posted at: https://ojjdp.ojp.gov/funding.
Lastly, $1 million has been awarded to Mecklenburg County under OJP’s National Institute on Justice (NIJ). NIJ is the research, development and evaluation agency of the Department of Justice, dedicated to improving knowledge and understanding of crime and justice issues through science. NIJ funding announcements are posted at: https://nij.ojp.gov/funding.
“Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.”
“The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.”
“Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.”
In addition, OJP will award more than $611 million to continue its support of other previously funded programs and congressionally directed spending. More information about the awards announced today can be found by visiting www.ojp.gov/funding/fy23awards.
Physician Charged with Distributing A Controlled Substance Appears in Federal CourtRead the Press Release
CHARLOTTE, N.C. – A North Carolina physician appeared before U.S. Magistrate Judge Susan C. Rodriguez this morning on charges related to the alleged unlawful distribution of a controlled substance, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
A criminal indictment charging Henry Ronald Emery, Jr., M.D., 52, of Waxhaw, N.C., with one count of conspiracy to distribute controlled substances outside the bounds of professional medical practice, and 11 counts of distribution of controlled substances outside the bounds of professional medical practice was unsealed following Dr. Emery’s initial court appearance.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Donald "Trey" Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, join U.S. Attorney King in making today’s announcement.
According to allegations contained in the indictment, from no later than September 2018 through in or about 2022, Dr. Emery, then a physician licensed to practice medicine in North Carolina, allegedly conspired with other persons to intentionally and unlawfully prescribe, dispense, and distribute, and did unlawfully prescribe, dispense, and distribute, a mixture and substance containing a detectable amount of buprenorphine, a Schedule III controlled substance. The indictment alleges that Dr. Emery engaged in the illegal distribution of buprenorphine on multiple occasions and while acting and intending to act outside the usual course of professional practice and not for a legitimate medical purpose.
If convicted, Dr. Emery faces a maximum penalty of 10 years in prison and a $500,000 fine on each count in the indictment.
The charges against Dr. Emery are allegations. A defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King thanked the DEA and IRS-CI for their investigation of the case.
Assistant U.S. Attorneys Nick J. Miller and William Bozin of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Albemarle to Pay over $218M to Resolve Foreign Corrupt Practices Act InvestigationRead the Press Release
Albemarle Corporation (Albemarle), a publicly-traded specialty chemicals manufacturing company headquartered in Charlotte, North Carolina, has agreed to pay more than $218 million to resolve investigations by the U.S. Department of Justice and the Securities and Exchange Commission (SEC) into violations of the Foreign Corrupt Practices Act (FCPA) stemming from Albemarle’s participation in corrupt schemes to pay bribes to government officials in multiple foreign countries.
According to the company’s admissions in connection with the Department’s resolution, between 2009 and 2017, Albemarle, through its third-party sales agents and subsidiary employees, conspired to pay bribes to government officials to obtain and retain chemical catalyst business with state-owned oil refineries in Vietnam, Indonesia, and India. Albemarle obtained profits of approximately $98.5 million as a result of the scheme.
“Albemarle earned nearly $100 million by participating in schemes to pay bribes to government officials in multiple countries,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “As today’s announcement makes clear, the Justice Department will work tirelessly with our partners in the ongoing fight against international corruption. Today’s resolution also demonstrates the real benefits that companies can receive if they self-disclose misconduct, substantially cooperate, and extensively remediate.”
In Vietnam, Albemarle corruptly obtained contracts at two state-owned oil refineries through an intermediary sales agent who requested increased commissions to pay bribes to Vietnam officials and to structure tender requirements to favor Albemarle. In Indonesia, Albemarle used a third-party intermediary to corruptly obtain catalyst business with Indonesia’s state-owned oil company, even after that third-party intermediary had informed Albemarle that it was necessary to pay bribes to Indonesian officials to obtain business. In India, Albemarle used a third-party intermediary to corruptly retain catalyst business with India’s state-owned oil company by avoiding Albemarle being blacklisted.
“Corruption has no borders, but neither does justice,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “Companies are expected to adhere to the same ethical and legal standards whether they are doing business on U.S. soil or overseas. Albemarle’s eventual voluntary disclosure of fraud and subsequent efforts to remedy its business practices abroad are a step in the right direction for the company. Above all, today’s announcement underscores our commitment to fight corruption affecting the United States no matter where it occurs.”
Albemarle entered into a three-year non-prosecution agreement (NPA) with the Department and agreed to pay a penalty of approximately $98.2 million and administrative forfeiture of approximately $98.5 million. The penalty reflects a reduction of $763,453 under Part II of the Criminal Division’s March 2023 Compensation Incentives and Clawbacks Pilot Program for bonuses that the company withheld from qualifying employees. In addition, Albemarle will pay approximately $103.6 million in disgorgement and prejudgment interest as part of the resolution of the SEC’s parallel investigation. The Department has agreed to credit approximately $81.9 million of the forfeiture to be paid to the Department against disgorgement Albemarle has agreed to pay to the SEC.
“The $218 million resolution announced today reflects IRS Criminal Investigation (IRS-CI) special agents’ commitment to working with our law enforcement partners to aggressively expose and disrupt organizations engaged in unscrupulous business practices,” said IRS-CI Chief Jim Lee. “Thanks to our domestic and international law enforcement partners, we’ve ensured Albemarle will be held accountable for their misdeeds.”
Pursuant to the NPA, Albemarle has agreed to continue to cooperate with the Department in any ongoing or future criminal investigations relating to this conduct. In addition, Albemarle agreed to continue to enhance its compliance program and provide reports to the Department regarding remediation and the implementation of compliance measures for the three-year term of the NPA.
The Department reached this resolution with Albemarle based on a number of factors, including, among others, the nature and seriousness of the offense. Albemarle voluntarily disclosed to the Department conduct that forms the basis for the resolution; however, the disclosure was not “reasonably prompt” as defined in the Criminal Division Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP) and the U.S. Sentencing Guidelines § 8C2.5(g)(1). Albemarle received credit under the CEP for its cooperation with the Department’s investigation, which included (i) voluntarily disclosing the conduct that forms the basis for this agreement before it came to the Department’s attention; (ii) promptly providing information obtained through its internal investigation, which allowed the government to preserve and obtain evidence as part of its own extensive independent investigation; (iii) making regular and detailed presentations to the Department; (iv) proactively identifying information previously unknown to the Department; (v) meeting the Department’s requests promptly; (vi) voluntarily making foreign-based employees available for interviews in the United States; (vii) collecting and producing voluminous relevant documents and translations to the Department, including documents located outside the United States; and (viii) producing documents to the Department from foreign countries in ways that did not implicate foreign data privacy laws. The company promptly engaged in extensive remedial measures including, among other things (i) commencing remedial measures based on its internal investigation of the misconduct prior to the commencement of the Department’s investigation; (ii) disciplining employees involved in the misconduct, including terminating 11 employees and withholding bonuses from 16 employees; (iii) strengthening its anti-corruption compliance program by investing in compliance resources, expanding its compliance function with experienced and qualified personnel, and taking steps to embed compliance and ethical values at all levels of its business organization; (iv) transforming its business model and risk management process to reduce corruption risk in its operation and to embed compliance in the business, including implementing a go-to-market strategy that resulted in eliminating the use of sales agents throughout the company, terminating hundreds of other third-party sales representatives, such as distributors and resellers, and shifting to a direct sales business model; (v) providing extensive training to its sales team and restructuring compensation and incentives so that compensation is no longer tied to sales amounts; (vi) using data analytics to monitor and measure its compliance program’s effectiveness; and (vii) engaging in continuous testing, monitoring, and improvement of all aspects of its compliance program beginning almost immediately following the identification of misconduct. In light of these considerations, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 45% reduction off the bottom of the applicable guidelines fine range.
IRS-CI is investigating the case.
Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Daniel Ryan for the Western District of North Carolina are prosecuting the case.
The Justice Department’s Office of International Affairs and authorities in Indonesia and India provided substantial assistance in the matter.
The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
NPAAlbemarle to Pay over $218M to Resolve Foreign Corrupt Practices Act InvestigationRead the Press Release
CHARLOTTE, N.C. – Albemarle Corporation (Albemarle), a publicly-traded specialty chemicals manufacturing company headquartered in Charlotte, North Carolina, has agreed to pay more than $218 million to resolve investigations by the U.S. Department of Justice and the Securities and Exchange Commission (SEC) into violations of the Foreign Corrupt Practices Act (FCPA) stemming from Albemarle’s participation in corrupt schemes to pay bribes to government officials in multiple foreign countries.
According to the company’s admissions in connection with the Department’s resolution, between 2009 and 2017, Albemarle, through its third-party sales agents and subsidiary employees, conspired to pay bribes to government officials to obtain and retain chemical catalyst business with state-owned oil refineries in Vietnam, Indonesia, and India. Albemarle obtained profits of approximately $98.5 million as a result of the scheme.
“Albemarle earned nearly $100 million by participating in schemes to pay bribes to government officials in multiple countries,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “As today’s announcement makes clear, the Justice Department will work tirelessly with our partners in the ongoing fight against international corruption. Today’s resolution also demonstrates the real benefits that companies can receive if they self-disclose misconduct, substantially cooperate, and extensively remediate.”
From, Dena J. King, United States Attorney“Corruption has no borders, but neither does justice. Companies are expected to adhere to the same ethical and legal standards whether they are doing business on U.S. soil or overseas. Albemarle’s eventual voluntary disclosure of fraud and subsequent efforts to remedy its business practices abroad are a step in the right direction for the company. Above all, today’s announcement underscores our commitment to fight corruption affecting the United States no matter where it occurs.”
In Vietnam, Albemarle corruptly obtained contracts at two state-owned oil refineries through an intermediary sales agent who requested increased commissions to pay bribes to Vietnam officials and to structure tender requirements to favor Albemarle. In Indonesia, Albemarle used a third-party intermediary to corruptly obtain catalyst business with Indonesia’s state-owned oil company, even after that third-party intermediary had informed Albemarle that it was necessary to pay bribes to Indonesian officials to obtain business. In India, Albemarle used a third-party intermediary to corruptly retain catalyst business with India’s state-owned oil company by avoiding Albemarle being blacklisted.
Albemarle entered into a three-year non-prosecution agreement (NPA) with the Department and agreed to pay a penalty of approximately $98.2 million and administrative forfeiture of approximately $98.5 million. The penalty reflects a reduction of $763,453 under Part II of the Criminal Division’s March 2023 Compensation Incentives and Clawbacks Pilot Program for bonuses that the company withheld from qualifying employees. In addition, Albemarle will pay approximately $103.6 million in disgorgement and prejudgment interest as part of the resolution of the SEC’s parallel investigation. The Department has agreed to credit approximately $81.9 million of the forfeiture to be paid to the Department against disgorgement Albemarle has agreed to pay to the SEC.
“The $218 million resolution announced today reflects IRS Criminal Investigation (IRS-CI) special agents’ commitment to working with our law enforcement partners to aggressively expose and disrupt organizations engaged in unscrupulous business practices,” said IRS-CI Chief Jim Lee. “Thanks to our domestic and international law enforcement partners, we’ve ensured Albemarle will be held accountable for their misdeeds.”
Pursuant to the NPA, Albemarle has agreed to continue to cooperate with the Department in any ongoing or future criminal investigations relating to this conduct. In addition, Albemarle agreed to continue to enhance its compliance program and provide reports to the Department regarding remediation and the implementation of compliance measures for the three-year term of the NPA.
The Department reached this resolution with Albemarle based on a number of factors, including, among others, the nature and seriousness of the offense. Albemarle voluntarily disclosed to the Department conduct that forms the basis for the resolution; however, the disclosure was not “reasonably prompt” as defined in the Criminal Division Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP) and the U.S. Sentencing Guidelines § 8C2.5(g)(1). Albemarle received credit under the CEP for its cooperation with the Department’s investigation, which included (i) voluntarily disclosing the conduct that forms the basis for this agreement before it came to the Department’s attention; (ii) promptly providing information obtained through its internal investigation, which allowed the government to preserve and obtain evidence as part of its own extensive independent investigation; (iii) making regular and detailed presentations to the Department; (iv) proactively identifying information previously unknown to the Department; (v) meeting the Department’s requests promptly; (vi) voluntarily making foreign-based employees available for interviews in the United States; (vii) collecting and producing voluminous relevant documents and translations to the Department, including documents located outside the United States; and (viii) producing documents to the Department from foreign countries in ways that did not implicate foreign data privacy laws. The company promptly engaged in extensive remedial measures including, among other things (i) commencing remedial measures based on its internal investigation of the misconduct prior to the commencement of the Department’s investigation; (ii) disciplining employees involved in the misconduct, including terminating 11 employees and withholding bonuses from 16 employees; (iii) strengthening its anti-corruption compliance program by investing in compliance resources, expanding its compliance function with experienced and qualified personnel, and taking steps to embed compliance and ethical values at all levels of its business organization; (iv) transforming its business model and risk management process to reduce corruption risk in its operation and to embed compliance in the business, including implementing a go-to-market strategy that resulted in eliminating the use of sales agents throughout the company, terminating hundreds of other third-party sales representatives, such as distributors and resellers, and shifting to a direct sales business model; (v) providing extensive training to its sales team and restructuring compensation and incentives so that compensation is no longer tied to sales amounts; (vi) using data analytics to monitor and measure its compliance program’s effectiveness; and (vii) engaging in continuous testing, monitoring, and improvement of all aspects of its compliance program beginning almost immediately following the identification of misconduct. In light of these considerations, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 45% reduction off the bottom of the applicable guidelines fine range.
IRS-CI is investigating the case.
Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Daniel Ryan for the Western District of North Carolina are prosecuting the case.
The Justice Department’s Office of International Affairs and authorities in Indonesia and India provided substantial assistance in the matter.
The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Poly-Drug Trafficker Is Sentenced to 10 YearsRead the Press Release
CHARLOTTE, N.C. - U.S. District Judge Frank D. Whitney sentenced a poly-drug trafficker to 10 years in prison late yesterday, announced Dena J. king, U.S. Attorney for the Western District of North Carolina. In addition to the term of incarceration, Deion Rashaad Thompson, 29, of Charlotte, was also ordered to serve five years of supervised release.
According to filed court documents and court proceedings, between January 2021 and June 2022, law enforcement conducting an ongoing investigation into drug trafficking networks in Charlotte, identified Thompson as a local drug distributor. Court records show that law enforcement working in an undercover capacity and with cooperating individuals arranged multiple controlled buys of illicit narcotics with Thompson, including fentanyl, heroin, methamphetamine, cocaine and cocaine base. One of the drug transactions occurred at a residence in Charlotte known to law enforcement from numerous drug overdoses that had occurred there.
On March 10, 2023, Thompson pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, methamphetamine, heroin, and fentanyl, three counts of distribution of fentanyl, and one count of distribution of methamphetamine.
Thompson is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King credited the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF) and thanked the FBI and the Charlotte Mecklenburg Police Department for their investigative efforts.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
Assistant U.S. Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Charlotte Business Owner Pleads Guilty to Wire Fraud Conspiracy for $720,000 COVID-19 Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Evan Agustin Perez, 35, of Charlotte, pleaded guilty today to wire fraud conspiracy for obtaining approximately $720,000 in fraudulent Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan (EIDL) Program loans, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to the information to which Perez pleaded guilty, other documents filed in this case and statements made in court, from April 2020 to September 2021, Perez conspired with Edward Whitaker and others in a scheme to defraud the U.S. Small Business Administration (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 Perez, Whitaker, and others submitted PPP and EIDL loan applications and supporting documents that contained false and fraudulent information regarding Perez’s businesses’ income, number of employees, gross revenues, and expenses. As a result of the fraudulent loan applications, the co-conspirators received approximately $720,000 in disaster relief funds. In furtherance of the scheme, Perez, Whitaker, and other co-conspirators subsequently submitted forgiveness applications for certain PPP loans that also contained fabricated information.
In January 2023, Whitaker pleaded guilty in federal court in the Eastern District of North Carolina to money laundering conspiracy for his role in a multi-million fraud scheme assisting individuals with obtaining fraudulent coronavirus disaster relief funds.
Perez was released on bond after his plea hearing. The maximum statutory penalty for the wire fraud conspiracy offense is five years in prison. A sentencing date has not been set.
The SBA Office of Inspector General investigated the case. Special Assistant U.S. Attorney Eric A. Frick and Assistant U.S. Attorney Daniel Ryan 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.
Man with Loaded Firearm at Charlotte Transportation Center Is Sentenced to 10 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Everett Jamal Taite, 30, of Charlotte, to 10 years in prison followed by three years of supervised release for possession of a stolen firearm at the Charlotte Transportation Center, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Brian Mein, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and the sentencing hearing, on October 4, 2022, law enforcement encountered Taite in a public restroom at the Charlotte Transportation Center where they observed him holding a small bag of cocaine. Court records show that when Taite was confronted by law enforcement, he attempted to put the cocaine into his backpack, failed to follow commands of the officer, resisted arrest, struck the officer in the face, and stated that he had a gun. Taite was taken into custody shortly thereafter. In Taite’s waistband, officers found a loaded .45 caliber pistol that had been reported stolen. Taite has previously been convicted in state court of conspiracy to commit common law robbery, two counts of felony breaking and entering, and possession of a firearm by a convicted felon.
On April 17, 2023, Taite pleaded guilty to possession of a stolen firearm. 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.
In making today’s announcement, U.S. Attorney King thanked the ATF for their investigation of the case.
Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Charlotte Man Is Sentenced to 16+ Years in Prison for Medicaid FraudRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Donald Booker, 57, of Charlotte, to 200 months in prison for his role in a scheme to defraud the North Carolina Medicaid program of more than $11 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Booker was also ordered to pay $11,834,506.27 in restitution to the North Carolina Medicaid program and to pay a $1,000 special assessment. On December 9, 2022, Booker’s co-defendant, Delores Jordan, 55, of Louisville, Kentucky, pleaded guilty for her role in the fraudulent scheme.
Joining U.S. Attorney King in making today’s announcement are Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, (IRS-CI), Charlotte Field Office, and North Carolina Attorney General Josh Stein, who oversees the North Carolina Medicaid Investigations Division (MID).
“Medicaid is a government-funded program that provides medical services to qualified North Carolinians in need of assistance. It’s not a get-rich-quick money jar for cheats and fraudsters to dip into,” said U.S. Attorney King. “The U.S. Attorney’s Office will hold accountable those who engage in schemes that defraud government programs and deprive important resources from those in real need.”
“North Carolina’s Medicaid program is meant to help the most vulnerable people in our community. Anyone who thinks they can manipulate the system should know the FBI will work tirelessly to make sure they pay dearly,” said FBI Special Agent in Charge DeWitt.
“Individuals abusing and stealing critical funding for Medicaid programs for their own financial benefit will be held accountable,” said Special Agent in Charge Eakins. “Thanks to the financial expertise and diligence of IRS-CI special agents working side-by-side with other federal, state and local law enforcement officers to uncover these schemes, the perpetrators now face the consequences of their actions.”
“When people steal from Medicaid, they’re breaking the law,” said Attorney General Stein. “They’re also taking from the taxpayers and people who need health care services. My office’s Medicaid Investigations Division works with our state and federal partners to hold accountable anyone committing Medicaid fraud.”
According to filed court documents, evidence presented at Booker’s trial evidence, and witness testimony, Booker owned United Diagnostic Laboratories (UDL), a urine toxicology testing laboratory, and United Youth Care Services (UYCS), a company that provided mental health and substance abuse treatment services. Booker’s co-defendant, Delores Jordan, owned Legacy Housing, a housing provider. Trial evidence established that, from January 2016 to August 2019, Booker and his co-conspirators executed a conspiracy to defraud the North Carolina Medicaid program by paying illegal kickbacks to Jordan and other co-conspirators in exchange for urine samples from Medicaid-eligible beneficiaries.
As Jordan previously admitted in court, she and other co-conspirators recruited housing-vulnerable individuals and other Medicaid-eligible beneficiaries for housing and other programs and services. Once enrolled, the beneficiaries were required to submit urine specimens for drug testing as a condition of their participation in the program. The specimens were provided to UDL and UYCS for medically unnecessary urine drug testing. Booker and his co-conspirators paid the recruiters a kickback from UYCS’s NC Medicaid reimbursement on the drug testing. Court records show that Booker and Jordan also executed a conspiracy to launder the proceeds of the kickback and health care fraud conspiracy in order to conceal and disguise the nature and source of UYCS’s illegal kickback payments for drug testing referrals.
On January 10, 2023, a federal jury convicted Booker of conspiracy to commit health care fraud, multiple violations of the Anti-Kickback Statute, money laundering conspiracy, and money laundering. Jordan has pleaded guilty to healthcare fraud conspiracy and money laundering conspiracy and is awaiting sentencing.
The FBI, IRS-CI, and the North Carolina Medicaid Investigations Division investigated the case.
Assistant U.S. Attorneys Graham Billings and Michael Savage of the U.S. Attorney’s Office in Charlotte prosecuted the case.
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Charlotte Doctor Is Found Guilty of Making False Statements in Connection with $5 Million Durable Medical Equipment SchemeRead the Press Release
CHARLOTTE, N.C. – A federal jury has returned a guilty verdict against a Charlotte physician for her role in a durable medical equipment (DME) scheme that defrauded federal benefits programs of more than $5 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Sudipta Mazumder, 47, of Charlotte, was convicted of six counts of making false statements relating to healthcare matters. U.S District Judge Max O. Cogburn Jr. presided over the trial.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tamala E. Miles, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General for the region including North Carolina, join U.S. Attorney King in making today’s announcement.
According to court documents, witness testimony, and evidence presented at trial, during 2019 and 2020, Mazumder was a doctor in Charlotte who worked as an independent contractor for a telemedicine company. During the relevant time frame, Dr. Mazumder signed fraudulent orders for medically unnecessary durable medical equipment for patients insured by the Medicare and TRICARE programs. Trial evidence established that Dr. Mazumder falsely stated in those orders that she was treating the patients for the listed medical conditions and that the braces she ordered were medically necessary.
According to trial evidence and the testimony of witnesses, contrary to the orders she signed, Dr. Mazumder never examined the Medicare and TRICARE beneficiaries. In fact, Dr. Mazumder had little or no interaction with the beneficiaries and made no medical determination whether the devices were medically necessary or the beneficiaries needed the DME. Dr. Mazumder received from the telemedicine company unsigned orders for orthopedic braces for the beneficiaries, which she signed and returned to the telemedicine company in exchange for $20 for each purported assessment that she performed.
Dr. Mazumder remains released on bond. The charge of making false statements relating to healthcare matters carries a maximum penalty of five years in prison and a $250,000 fine, per count. A sentencing date has not been set.
The investigation was handled by the FBI and HHS-OIG with the assistance of the Defense Criminal Investigative Service of the U.S. Department of Defense, Office of the Inspector General.
Assistant U.S. Attorneys Graham Billings and Katherine Armstrong of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Armed Fentanyl and Cocaine Dealer Is Sentenced to 7.5 YearsRead the Press Release
CHARLOTTE, N.C. – George McNeill, 32, of Charlotte, was sentenced today to 90 months in prison followed by four years of supervised release for possession with intent to distribute fentanyl and cocaine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed court documents and information presented at the sentencing hearing, in September 2021, law enforcement learned that McNeill was a fentanyl and cocaine trafficker in the Charlotte area. Court records show that law enforcement working with a cooperating individual arranged a meeting with McNeill to buy narcotics. When McNeill arrived in his vehicle at the agreed-upon location, law enforcement moved in to detain him. McNeill sped away from the scene to evade arrest. McNeill eventually crashed his vehicle and then attempted to flee on foot. He was apprehended after a brief foot chase. After McNeill was arrested, law enforcement searched his vehicle and recovered fentanyl, cocaine, drug paraphernalia, and $2,160 in cash. Law enforcement also found a firearm loaded with six rounds of ammunition tucked beneath the center console arm rest. Court records show that McNeill has multiple prior state convictions for drug trafficking.
On April 11, 2023, McNeill pleaded guilty to possession with intent to distribute fentanyl and 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.
In making today’s announcement, U.S. Attorney King credited the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF), and thanked the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Charlotte Mecklenburg Police Department for their investigative efforts.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
Assistant U.S. Attorney Taylor G. Stout of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Twice-Convicted Accountant Is Charged with Embezzling More Than $1.1 Million from EmployerRead the Press Release
CHARLOTTE, N.C. – A federal grand jury in Charlotte has indicted Mandy Deann Urban, 47, formerly of Charlotte, with wire fraud, for allegedly embezzling more than $1.1 million from her employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined in making today’s announcement by Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department.
According to allegations in the indictment, from January 2019 to June 2022, Urban was employed as a senior staff accountant for a Charlotte-based company. In that capacity, Urban was responsible for maintaining the company’s general ledger, preparing financial statements, and reconciling the company’s accounts payable and receivable and bank statements. The indictment alleges that Urban executed a scheme to defraud her employer by misusing her access to make multiple transfers from the company’s bank accounts to accounts under Urban’s control. Urban also allegedly falsified the company’s books and records to conceal the scheme. As alleged in the indictment, Urban made more than 245 fraudulent transfers from the accounts of the company totaling $1,115,344.73.
According to allegations in the indictment, Urban used the embezzled funds to pay for personal expenses, including tens of thousands of dollars for mortgage, car, education, and vacation expenses, and to buy cryptocurrency. Additionally, it is alleged that Urban transferred significant amounts of embezzled funds to family members.
The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Court records show that Urban is currently in custody in Florida, serving a prison sentence for defrauding a previous employer of more than $283,000, and using the embezzled money to pay for court-ordered restitution for a prior embezzlement.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King commended HSI and CMPD 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.
Charlotte Behavioral Health Services Provider Is Indicted for Defrauding the South Carolina Medicaid Program and COVID-19 Relief FraudRead the Press Release
CHARLOTTE, N.C. – A Charlotte behavioral health services provider has been indicted on federal charges for allegedly defrauding the South Carolina Medicaid Program (SC Medicaid) and falsely obtaining COVID-19 relief funds, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
The 16-count federal indictment charges Ashley Nicole Cross, 41, of Charlotte, with healthcare fraud, making false writings relating to a healthcare matter, making false statements relating to a healthcare matter, promotion money laundering, wire fraud, wire fraud conspiracy, and wire fraud affecting a financial institution.
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.
The Healthcare Fraud Scheme
The federal indictment alleges that Cross owned and operated Odyssey Health Group (OHG), a Charlotte-based company, that was enrolled with SC Medicaid and provided outpatient behavioral health services to eligible Medicaid beneficiaries in South Carolina. From 2016 to 2021, Cross carried out an extensive healthcare fraud scheme involving the fraudulent submissions of fraudulent reimbursement claims to SC Medicaid and its contracted managed care organizations for rehabilitative behavioral health services that were never provided. The indictment alleges that Cross paid for the personal identifying information (PII) of qualified SC Medicaid beneficiaries. Cross then allegedly used the PII to file fraudulent reimbursement claims totaling at least $400,000. To further the scheme and to give the appearance that OHG’s fraudulent claims were legitimate, Cross allegedly instructed OHG employees to create fictitious patient files and clinical service notes in the names of beneficiaries.
According to allegations in the indictment, in September 2019, Cross was informed of an audit into OHG’s claims. The indictment alleges that Cross submitted fictitious patient medical records and made false statements to the auditor in order to cover up the fraud.
The indictment also alleges that Cross engaged in money laundering and used some of the fraudulent proceeds to promote the scheme by paying for Medicaid beneficiary names and PII.
The COVID-19 Fraud Scheme
According to allegations in the indictment, from April 3, 2020, to May 14, 2022, Cross executed a scheme to obtain fraudulent Paycheck Protection Program (PPP) loans on behalf of OHG and Gucci International Inc. (Gucci), a purported event planning business owned by a co-conspirator. To obtain the PPP loans, Cross submitted loan application and supporting documents that contained false statements regarding OHG’s and Gucci’s payroll expenses, number of employees, and other misrepresentations. As a result of the fraudulent PPP loan applications and supporting documents, Cross and her coconspirator obtained more than $120,000 in COVID-19 relief funds for OHG and Gucci. At the time of Gucci’s loan application, the company’s owner was under indictment for a federal offense.
The charges against Cross are allegations. A defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
A summons has been issued and Cross will appear in federal court for her initial appearance. The healthcare fraud offense carries a maximum penalty of 10 years in prison for each count in the indictment. The offense of making false writings and false statements relating to a healthcare matter carries a maximum prison sentence of five years. The promotion money laundering and wire fraud charges each carry a maximum statutory sentence of 20 years in prison per count. And the charge of wire fraud conspiracy affecting a financial institution carries a maximum penalty of 30 years in prison.
The FBI investigated the case with the substantial assistance of the South Carolina Attorney General’s Office, Medicaid Fraud Investigations.
Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
U.S. Postal Carrier and Husband Plead Guilty for Mail Theft SchemeRead the Press Release
CHARLOTTE, N.C. – A U.S. Postal Carrier and her husband appeared in federal court today and pleaded guilty to federal charges for conspiring to commit an extensive mail theft scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Kiara Padgett, 29, of Waxhaw, N.C., and her spouse, Dominique Dunlap, 28, of Charlotte, pleaded guilty to conspiracy to commit bank fraud. Dunlap also pleaded guilty to four counts of possession of stolen mail.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, 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, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to plea documents, other court filings, and today’s court proceedings, Padgett was employed by the U.S. Postal Service as a mail carrier with a postal route in West Charlotte. From August 2021 to November 2022, Padgett used her position as a postal carrier to steal incoming and outgoing checks of businesses and individuals. Court documents show that Padgett sold the stolen checks using Dunlap as her intermediary to other individuals, including to Terrell Alexander Hager, Jr. The total face value of the checks stolen by Padgett was over $8.8 million.
According to court documents, Dunlap negotiated with Hager, Jr. about the sale of stolen checks over text messages, and sent Hager, Jr. photographs of stacks of stolen mail and of stolen checks of victim companies on Padgett’s postal route.
In March 2023, Hager, Jr. pleaded guilty to conspiracy to commit bank fraud. Court documents filed with the court show that, between August 2021 and November 2022, Hager, Jr. and other individuals obtained stolen checks from Padgett through Dunlap. Hager, Jr. and his co-conspirators deposited the stolen checks into bank accounts they controlled, and then made cash withdrawals before the financial institutions detected the fraud. Over the course of the scheme, Hager, Jr. and his co-conspirators deposited more than $66,000 in stolen checks and money orders. Hager, Jr. also posted online for sale more than 400 stolen checks totaling over $7.3 million. The checks posted by Hager, Jr. were stolen from Padgett’s postal route in West Charlotte. At the time Hager, Jr. committed this fraud, he was on probation with the state of North Carolina for an unrelated offense.
At sentencing, Padgett, Dunlap, and Hager, Jr. face a maximum prison term of 30 years and a $1 million fine for the bank fraud conspiracy charge. Dunlap also faces five years in prison and a $250,000 fine for each of the charges of possession of stolen mail. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King commended the USPIS, USPS-OIG, and CMPD 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.
Henderson County Methamphetamine Distributor Is Sentenced to 14 Years in PrisonRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Brandon Lee Nalley, 48, of Hendersonville, N.C., to 168 months in prison followed by five years of supervised release for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed documents and today’s sentencing hearing, between July 2021 and December 2021, federal, state, and local law enforcement conducting an investigation into methamphetamine trafficking networks in western North Carolina identified Nalley as a supplier of methamphetamine in Henderson County. Over the course of the investigation, law enforcement utilized a confidential source to arrange multiple controlled buys of methamphetamine from Nalley. On December 22, 2021, deputies with the Haywood County Sheriff’s Office conducted a traffic stop of Nalley’s vehicle. Over the course of the stop, the deputies found a duffel bag inside the vehicle that contained methamphetamine, a loaded handgun with an extended magazine, and an additional magazine loaded with seven rounds of hollow point ammunition.
On April 26, 2023, Nalley pleaded guilty to conspiracy to possess with intent to distribute 50 grams or more of actual methamphetamine and 500 grams or more of a mixture containing methamphetamine, and distribution of 50 grams or more of actual methamphetamine. 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.
In making today’s announcement, U.S. Attorney King credited an investigation led by the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF), and thanked the U.S. Drug Enforcement Administration, the Henderson County Sheriff’s Office, the Haywood County Sheriff’s Office, the Swain County Sheriff's Office, the Waynesville Police Department, the McDowell County Sheriff’s Office, the Canton Police Department, the Buncombe County Sheriff’s Office, the Maggie Valley Police Department, the North Carolina State Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their investigative efforts.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
Assistant United States Attorney Christopher Hess, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Head of Drug Trafficking Organization Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – The head of a drug trafficking organization responsible for distributing multiple kilograms of methamphetamine and other illicit drugs in the Charlotte area was sentenced today to 17 years in prison, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Upon his release from prison, Laricco Eugene Sherrill, Sr., 45, of Charlotte, will be subject to five years of supervised release.
Alicia Jones, Acting 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.
In addition to Sherrill, Sr., six other members of the drug trafficking organization (DTO) have been sentenced as follows:
- Jakieran Harris, 27, of Charlotte, was sentenced to 108 months in prison, followed by three years of supervised release.
- Laricco Eugene Sherrill, Jr., 24, of Charlotte, was sentenced to 84 months in prison, followed by four years of supervised release.
- Marquez Maxwell, 28, of Charlotte, was sentenced to 54 months in prison, followed by three years of supervised release.
- Quentin Nathaniel Stowe, 29, of Charlotte, was sentenced to 48 months in prison, followed by three years of supervised release.
- Brian Clinton, 25, of Charlotte, was sentenced to 42 months in prison, followed by three years of supervised release.
- Sadarian Armstrong, 42, of Charlotte, was sentenced to 24 months in prison, followed by three years of supervised release.
According to court documents and court proceedings, beginning as early as January 2020 through August 17, 2021, Sherrill, Sr. was the leader of the DTO that distributed large quantities of narcotics in Mecklenburg County and surrounding areas. Court records show that the DTO used several residences in Charlotte, commonly referred to as “trap houses,” as bases of operation from which they sold the drugs. Young children were regularly present in these trap houses while DTO members sold drugs. Over the course of the investigation, law enforcement executed multiple search warrants and seized from DTO members and the trap houses fentanyl, methamphetamine, cocaine, cocaine base, and marijuana, drug paraphernalia, digital scales, several firearms and ammunition, and over $63,650 in drug proceeds.
As the leader of the DTO, Sherrill, Sr. purchased large quantities of methamphetamine and other narcotics from multiple supply sources. He stored the drugs in several residences, or stash houses, in the area, and used a network of local distributors, including the six co-conspirators, to sell the drugs. Over the course of the investigation, law enforcement arranged multiple controlled drug buys with Sherrill, Sr. and co-conspirators working for him. Before the investigation leading to this case, Sherrill, Sr. had previously served a federal prison sentence for trafficking drugs while armed in the Western District of North Carolina.
On April 11, 2023, Sherrill, Sr. pleaded guilty to distribution of methamphetamine.
“As head honcho of a drug trafficking organization, Sherrill, Sr. sold drugs, unfazed by the havoc he was wreaking in the lives of those who bought his poison,” said U.S. Attorney King. “Drug trafficking and the violence linked to the drug trade are a blight that threatens the stability and safety of our communities. Thanks to the joint efforts of my Office and our law enforcement partners, Sherrill, Sr. will now spend nearly two decades behind bars.”
“Disrupting violent drug trafficking organizations has an enormous impact on the safety of our cities,” said Acting Special Agent in Charge Jones. “In the process of breaking up these drug trafficking networks, we’re recovering firearms, bringing dangerous individuals to justice, and making our neighborhoods safer.”
In making today’s announcement U.S. Attorney King credited the ATF and CMPD’s Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF program can be found at https://www.justice.gov/OCDETF.
Assistant United States Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Convicted Felon Is Sentenced to Prison for Illegal Possession of A FirearmRead the Press Release
CHARLOTTE, N.C. – Jeremy Isaih Perdue, 36, of Charlotte, was sentenced to 48 months in prison for illegal possession of a firearm, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Alicia Jones, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.
According to court records, on May 19, 2021, CMPD officers saw Perdue selling drugs in a parking lot in Charlotte. CMPD officers approached Perdue. After a brief struggle, Perdue was detained. During the struggle, the officers observed a firearm tucked in Perdue’s waistband. The officers removed the firearm, which was a semiautomatic pistol loaded with five rounds of ammunition. In addition to the firearm, law enforcement also seized from Perdue and his vehicle methamphetamine, cocaine, and more than $1,100 in cash. Perdue has prior felony convictions and he is prohibited from possessing firearms or ammunition.
Purdue pleaded guilty to possession of a firearm by a convicted felon. Today, he was sentenced by the Honorable Kenneth D. Bell, who ordered Perdue to serve three years of supervised released following completion of his prison term.
U.S. Attorney King thanked the ATF and CMPD for their investigation of the case.
Assistant United States Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney's Office Announces $600,000 in Federal Funding Awarded to Mecklenburg CountyRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that $600,000 in federal grants has been allocated to Mecklenburg County by the Justice Department’s Office on Violence Against Women (OVW), to expand access to legal services and enhance processes impacting the safety of victims and their families.
“I am pleased to announce that the Western District of North Carolina has been awarded funding from the Office on Violence Against Women,” said U.S. Attorney King. “Federal grants are a vital resource for organizations with programs that support the Justice Department’s mission to improve access to legal services and enhance the safety of victims, survivors, and their families.”
The OVW grant was allocated under the Justice for Families (JFF) Program, authorized in the Violence Against Women Reauthorization Act of 2013, to improve the response of the civil and criminal justice system to families with a history of domestic violence, dating violence, sexual assault, and stalking, or in cases involving allegations of child sexual abuse. The grant was awarded by the JFF Program to Mecklenburg County Community Support Services, to fund a project related to supervised visitation and safe custody exchange services, provide legal representation and legal assistance services for victims of domestic violence, and expand legal services, including language access, to underserved communities and communities with limited English proficiency.
“The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system’s approach to supporting families affected by violence,” stated OVW Director Rosemarie Hidalgo. “These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don’t merely navigate our legal system, but genuinely find a path to justice and safety.”
Created in 1995, OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act (VAWA) and subsequent legislation. OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Two Charlotte Businessmen Are Sentenced to Prison for Selling Fraudulently Obtained New iPhones OverseasRead the Press Release
CHARLOTTE, N.C. – Hamzeh Jamal Alasfar, 31, and Tayseer Issam Alkhayyat, 35, both of Charlotte, were each sentenced today to 46 months in prison for a multi-year scheme to buy, sell, and ship fraudulently obtained and stolen new Apple iPhones to domestic and international buyers, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The defendants were also ordered to serve three years under court supervision after they are released from prison.
Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s sentencing hearing, from 2013 through 2020, Alasfar and Alkhayyat engaged in a scheme to purchase fraudulently obtained and stolen new Apple iPhones and other electronic devices, which they then sold and shipped to buyers located in other states and foreign countries, including dozens of packages to the United Arab Emirates and Hong Kong.
Alasfar and Alkhayyat operated multiple businesses located in Charlotte, including Cellport International Inc. (Cellport) and D Town Wireless (D Town), which the defendants used to carry out the scheme. The defendants and their employees at D Town and Cellport purchased new iPhones, which were often still sealed in the box, at prices significantly below retail value from individuals who obtained the devices through fraud and theft. Between January 2019 and January 2020, Alasfar and Alkhayyat sold and shipped through Cellport more than 20,000 new iPhones for more than $20 million, many of which were fraudulently obtained.
On March 2, 2023, the defendants pleaded guilty to interstate and foreign transportation of stolen property. They will be ordered to report to the federal Bureau of Prisons to begin serving their prison terms upon designation of a federal facility.
This case was the result of the investigative efforts of CMPD and the Secret Service, which have established a fully integrated partnership to combat organized criminal groups operating in Charlotte. Through this partnership, this unit has successfully leveraged local and federal resources, personnel, expertise and authorities to identify and combat the criminals and criminal organizations that have the largest negative impact on the community.
Assistant U.S. Attorneys William T. Bozin and Michael E. Savage of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Boone, N.C. Man Is Sentenced to Prison for Possession of Child PornographyRead the Press Release
CHARLOTTE, N.C. – Jason Ian Kendrick, 44, of Boone, N.C., was sentenced today to 70 months in prison for possession 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 Kendrick to serve a lifetime of supervised release and 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) in North Carolina joins U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s sentencing hearing, beginning in January 2021, an undercover agent with the FBI observed that Kik Messenger user “jik2cool”,” later identified as Kendrick, was participating in private group chats dedicated to the distribution of child pornography. On multiple occasions, Kendrick also used Kik Messenger to access and view images and videos depicting the sexual abuse of children. In October 2021, the FBI also received a tip from the National Center for Missing and Exploited Children concerning the same Kik Messenger username, indicating that the user had shared files through the app that depicted child pornography.
On January 24, 2022, the FBI executed a search warrant at Kendrick’s residence. Over the course of the search, an FBI agent conducted a voluntary interview with Kendrick at his residence, where Kendrick admitted that he used Kik Messenger to access and view child pornography. Kendrick further admitted that he did not store child pornography locally, but instead he would download the app, locate child pornography, and then delete the app after viewing it. According to court records, Kendrick’s offense involved hundreds of images depicting the sexual abuse of children, including toddlers and infants.
On April 20, 2023, Kendrick pleaded guilty to possessing and accessing with intent to view child pornography containing a minor who had not attained the age of 12 years. 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.
The case was investigated by the FBI.
Assistant United States Attorney Mark T. Odulio 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.
Founder and Creator of Anti-Government Website Is Sentenced to Prison for Communicating Interstate ThreatsRead the Press Release
ASHEVILLE, N.C. – The founder and creator of an anti-government website was sentenced late yesterday in federal court in Asheville to 10 years in prison, for aiding and abetting threatening interstate communications, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Timothy Michael Dever, 57, of Naperville, Illinois, was ordered to serve three years under court supervision after he is released from prison. Dever’s co-defendant, Darris Gibson Moody, 57, of Waynesville, N.C., was sentenced to two years in prison and three years of supervised release for making a threatening interstate communication.
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, Dever was the creator and administrator of a website for a fictitious entity, the “People’s Bureau of Investigation” (PBI). As the website’s administrator, Dever hosted, maintained, and provided content for PBI, including templates for court judgments, or “Writs of Execution,” issued by the “U.S. Environmental District Court,” a fictitious court that purportedly had convicted hundreds of public officials and private individuals of various bogus crimes. The website claimed that the writs gave private citizens, like Moody, the authority to conduct a “citizen’s arrest” of the individuals on the fake writs. The website also claimed that those arrested could face a punishment of monetary fines, imprisonment, and even death, and that anyone who made a “citizen’s arrest” of the persons named in the writs was eligible to receive a monetary reward of up to $20,000.
According to court documents and the sentencing hearing, Dever promoted the writs as a mechanism for removing federal, state, and local officials from their positions. Dever made the template for the fake writs available for download on PBI’s website, as well as other documents and videos that explained the purpose of the writs and how to serve them. For example, one video on the website was a recorded radio talk show, where Dever and another individual discussed how private citizens could arrest “a sheriff, a judge and a governor,” who they claimed to have been convicted in the “highest court of the land.” Dever also maintained on PBI’s website a list that contained the names, home addresses, and personal information of victims who had been falsely named as convicted defendants in the fake writs. Court records show that the PBI website listed the personal identifying information of over 900 victims, located in approximately 32 different states.
As Dever previously admitted in court, PBI’s website also enabled group members to use a digital app to have encrypted communications in online chatrooms and via text messages, and to share information on how to create, use, and serve the writs. Dever also used PBI’s website to raise funds by soliciting direct donations and selling PBI merchandise.
Moody was a like-minded PBI group member who accused her targets of having been convicted of corruption, environmental charges, and even treason. Moody used the PBI website to generate fake arrest writs for 57 individuals, most of whom resided in the Western District of North Carolina, including sheriffs, judges, and other government officials and private individuals, and used software to fax the fake arrest notices to the recipients.
"Dever's anti-government rhetoric and fake arrest writs were more than a nuisance. They put hundreds of lives at risk. Those who shared Dever's warped ideology, including Moody, became self-proclaimed bounty hunters that turned innocent victims into targets of harassment, intimidation, and death threats. But, unlike Dever and Moody's sham court proceedings, my Office has legitimate authority to hold these defendants accountable for their actions."
Dena J. King, United States Attorney
“At its core, the FBI’s mission is to protect the American people and uphold the Constitution of the United States. While we celebrate the freedoms of our country, you cannot make up your own laws and threaten those who serve or are elected by our democracy,” said Special Agent in Charge DeWitt.
Dever pleaded guilty to five counts of aiding and abetting interstate threatening communication. Moody pleaded guilty to making an interstate threating communication. 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.
In making today’s announcement, U.S. Attorney King commended the FBI for their investigation of this case and thanked the Haywood County Sheriff’s Office for their assistance.
Assistant U.S. Attorney Don Gast of the U.S. Attorney’s Office in Asheville prosecuted the case.
Cherokee, N.C. Man Is Sentenced to Prison for Trafficking MethamphetamineRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced a Cherokee, North Carolina man for possession with intent to distribute methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Edward Dwayne Taylor, who is 35 years old and an Enrolled Member of the Eastern Band of Cherokee Indians, was ordered to serve 87 months in prison, followed by five years of supervised release.
Chief Carla Neadeau of the Cherokee Indian Police Department (CIPD) joins U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, on June 4, 2021, a CIPD officer conducted a traffic stop of a vehicle in Cherokee, knowing that the driver was operating the vehicle with a suspended license. Taylor was one of the passengers in the vehicle. Over the course of the traffic stop, law enforcement recovered from another passenger a bag that contained more than 130 grams of methamphetamine, digital scales, and small plastic baggies, items that are consistent with drug distribution. Court documents show that over the course of the investigation CIPD officers determined that the methamphetamine belonged to Taylor, and that the other passenger had agreed to hide the drugs at Taylor’s request.
Taylor is in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked CIPD for their investigation of the case.
Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
Members of Charlotte-Based Auto Theft Ring Are Charged in Federal CourtRead the Press Release
CHARLOTTE, N.C. – A criminal indictment was unsealed in federal court today, charging five individuals with stealing dozens of high-end vehicles worth millions of dollars from dealerships located across the United States, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined in making today’s announcement by Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD).
The indictment charges Dewanne Lamar White, 43, of Sumter, South Carolina, Garyka Vaughn Bost, 24, of Denver, North Carolina, Kevin Ja’Coryen James Fields, 27, of Charlotte, Hosea Fernandez Hampton, Jr., 25, of Charlotte, and Reginald Eugene Hill, 23, of Charlotte, with conspiracy to transport, possess, and sell stolen vehicles in interstate commerce, and interstate transportation of a stolen motor vehicle. White, Fields, and Hampton are also charged with possession of a stolen motor vehicle.
According to allegations in the indictment, from 2021 to 2023, the defendants engaged in a conspiracy to steal luxury vehicles worth millions of dollars from dealerships in North Carolina, South Carolina, Georgia, Florida, Tennessee, Kentucky, Alabama, Mississippi, Louisiana, Indiana, Ohio, Pennsylvania, New Jersey, New York, and Arizona. The indictment alleges that the co-conspirators transported the stolen vehicles back to Charlotte and sold them locally at prices well below market value. The indictment further alleges that, to maximize profits, the co-conspirators stole luxury vehicles made by Bentley, BMW, Cadillac, Land Rover, Porsche, and Mercedes-Benz, and other expensive models from Chevrolet, Dodge, Ford, and other manufacturers.
According to allegations in the indictment, the defendants executed the thefts in a number of ways. In some instances, the co-conspirators visited dealerships posing as customers interested in purchasing the vehicles. After pretending to test drive or inspect the vehicles, the co-conspirators would allegedly swap the vehicles’ key fobs with similar ones, and later use the stolen key fobs to steal the vehicles. Other times, the indictment alleges that the co-conspirators employed methods like “smash and grab” thefts, where they would break into dealerships and locate keys to the high-end models, or break open lockboxes containing keys to luxury vehicles, and then drive the vehicles off the lot. The indictment alleges that Bost, Fields, and Hill often served as drivers in the conspiracy, and White and Hampton frequently paid them and other drivers for their work in the scheme. The indictment further alleges that on several occasions the defendants and their co-conspirators stole multiple vehicles simultaneously, resulting in hundreds of thousands of dollars in losses.
According to allegations in the indictment, once the stolen vehicles were taken off the dealership lots, the defendants avoided law enforcement detection by removing the GPS navigation and tracking systems from the stolen vehicles, attaching fictitious dealer tags or stolen license plates on the vehicles, and replacing the vehicles’ authentic Vehicle Identification Numbers, among other things.
In announcing the federal indictment, U.S. Attorney King said, “We will not tolerate brazen theft schemes that cost businesses and consumers millions of dollars. I want to thank our federal and local law enforcement partners for their incredible work with this ongoing investigation that has led to today’s charges.”
“Stopping schemes like this is critical as it not only protects businesses, but also it helps protect our economy,” said Special Agent in Charge Martinez. “We worked closely with a number of our law enforcement partners to shut down this multimillion-dollar operation and bring the perpetrators to justice and I am happy with the success of the operation.”
“No matter how complicated an interstate theft ring may seem, the FBI is poised to uncover, dissect, and dismantle the scheme,” said Special Agent in Charge DeWitt. “We are committed to working with our partners to ensure justice is served.”
The charge of conspiracy to transport, possess, and sell stolen vehicles in interstate commerce carries a maximum penalty of five years in prison and a $250,000 fine. The charge of interstate transportation of a stolen motor vehicle and possession of a stolen vehicle each carry a statutory maximum penalty of 10 years in prison and a $250,000 fine.
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.
U.S. Attorney King thanked HSI, FBI, and CMPD for their investigation of the case
and recognized the contributions of the York County South Carolina Sheriff’s Office and many other state and local law enforcement partners that contributed to the investigation.
Assistant U.S. Attorneys William Bozin and Daniel Ryan of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Hickory, N.C. Woman Is Charged with Embezzling More Than $900,000 from EmployerRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has returned a criminal indictment, charging Michelle Wilshire, 48, of Hickory, N.C., with multiple counts of wire fraud, tax fraud, and money laundering, for allegedly embezzling more than $900,000 from her employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined in making today’s announcement by Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte.
According to allegations in the indictment, from 2016 to 2021, Wilshire was employed by a family-owned business located in Conover, N.C., identified in court documents as Company A. During the relevant time, Wilshire was in charge of Company A’s Comdata account – a third-party payment processing and debit card issuing service – which Company A used for fleet management and payment services for its drivers. The indictment alleges that Wilshire executed a scheme to defraud her employer by issuing multiple Comdata prepaid debit cards in her name and in the names of other individuals, including former employees, fictitious employees, and current employees who were not aware the cards existed. Wilshire allegedly caused Comdata to load funds onto the prepaid debit cards, which the defendant then withdrew via ATM cash withdrawals. Between November 2017, and July 2021, Wilshire allegedly withdrew more than $528,000 from prepaid Comdata debit cards.
In addition to the debit card scheme, Wilshire allegedly embezzled Company A’s funds by using Comdata’s Comchek and Comchek Mobile services to issue checks in the defendant’s name and to make multiple wire transfers into Wilshire’s personal bank account, totaling over $315,000. Wilshire also allegedly caused more than $58,000 of Company A’s funds to be transferred through Comdata into the bank account of a former company employee.
According to allegations in the indictment, Wilshire also prepared and filed individual income tax returns for tax years 2017 through 2021, which did not include the additional funds Wilshire received through her embezzlement scheme.
Wilshire is charged with six counts of wire fraud, which carry a maximum penalty of 20 years in prison and a $250,000 fine per count; five counts of making and subscribing a false tax return, which carry a statutory maximum term of one year in prison per count; and two counts of money laundering which carry a maximum penalty of 20 years in prison and a $500,000 fine or twice the value of the property involved in the transaction.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
Wilshire’s initial court appearance in Charlotte has been scheduled for Tuesday, August 29, 2023, at 10:15 a.m.
In making today’s announcement, U.S. Attorney King thanked IRS-CI and USPIS for their investigation of the case.
Assistant U.S. Attorney Mike Savage and Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
North Carolina Gang Investigators Association Recognizes District Employee and Community Organization for Their WorkRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that a U.S. Attorney’s Office employee and a community organization in Asheville were recognized by the North Carolina Gang Investigators Association (NCGIA) today, at the annual Gangs Across the Carolinas conference in Winston-Salem.
The NCGIA is an association of law enforcement and criminal justice professionals, dedicated to the prevention of gang-related activity within the state of North Carolina. Each year, NCGIA hosts the Gang Free North Carolina (GFNC) Awards, to recognize the outstanding accomplishments of law enforcement personnel, community programs, and criminal justice professionals in the Carolinas for their work in their field.
This year, the NCGIA recognized Shirley Rutledge who works as a Victim Witness Coordinator in the U.S. Attorney’s Office and is responsible for providing services to victims and witnesses of federal crimes. Ms. Rutledge is the recipient of the NCGIA’s Civilian of the Year Award, in recognition of her exemplary work with the Emergency Witness Assistance Program (EWAP). The program provides emergency services and assistance to witnesses and helps them participate in the prosecution of federal cases. As part of her duties, Ms. Rutledge works to ensure that federal witnesses receive the support and services they need throughout the litigation process.
“Shirley is a dedicated public servant whose work with witnesses is vital to the successful prosecution of federal cases,” said U.S. Attorney King. “Shirley has a thorough knowledge of the EWAP program and always goes the extra mile to ensure that witnesses are treated fairly and respectfully and they are afforded all the protections and services they need to help federal prosecutors with their cases. Shirley’s skills are invaluable to my Office and to law enforcement, and her work enables us to continue to make cases against the most violent offenders and hold criminals accountable for their actions.”
The NCGIA also recognized Keynon Lake and his organization “My Daddy Taught Me That” (MDTMT), for its work with young males in the greater Asheville area. MDTMT is a youth development program designed to support young men through advocacy, education, and mentoring. The program focuses on helping adolescent males to transition successfully into adulthood by cultivating and developing strong interpersonal skills, good decision-making, acceptance of responsibility, and accountability for their actions.
“Mr. Lake and his organization provide important youth intervention and development services to underserved communities in Asheville,” said U.S. Attorney King. “I want to thank Mr. Lake for his outstanding work in the area of youth and community development and violence prevention. His work with young people complements law enforcement efforts to increase the health, safety and well-being of those we serve, and fulfil our mission to keep communities strong and thriving.”
Additional information about the U.S. Attorney’s Office Victim Witness Assistance Program can be found here.
Georgia Man Is Sentenced to 22 Years in Prison for Multiple Armed Bank Robberies in Three StatesRead the Press Release
CHARLOTTE, N.C. – A Georgia man who committed multiple armed bank robberies in North Carolina, Tennessee, and Georgia, was sentenced to 22 years in prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Johnny Jermaine Davis, 40, of Kennesaw, Georgia, was also ordered to serve five years under court supervision after he completes his prison term and to pay over $65,000 in restitution.
Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina joins U.S. Attorney King in making today’s announcement.
On September 1, 2022, Davis pleaded guilty to six counts of bank robbery and one count of brandishing a firearm in furtherance of a crime of violence. In addition to charges filed in the Western District of North Carolina, Davis was charged with bank robbery by the U.S. Attorneys’ Offices in the Eastern District of North Carolina, the Middle District of North Carolina, the Eastern District of Tennessee, the Middle District of Tennessee, and the Northern District of Georgia. Those federal cases were subsequently transferred to the U.S. Attorney’s Office in the Western District of North Carolina for consolidated prosecution.
According to filed court documents and court proceedings, between January and May 2021, Davis robbed seven banks in three states, including two banks in Asheville, N.C. Davis brandished a firearm during each of these robberies and discharged a firearm during one robbery.
The Bank Robbery in East Ridge, Tennessee
Court records show that on January 6, 2021, at approximately 3:00 p.m., Davis robbed a Regions Bank in East Ridge, Tennessee. After he entered the bank, Davis approached the bank teller and asked to cash a check. Davis then drew a firearm and vaulted over the counter. Davis demanded money from the bank tellers and discharged the firearm, which caused a window to shatter. Davis then took money from the teller drawers and fled the scene.
The First Bank Robbery in Asheville, North Carolina
On February 25, 2021, at approximately 3:02 p.m., Davis entered the BB&T bank located at 1653 Hendersonville Road, in Asheville. Davis was wearing a blue and white baseball cap, sunglasses, and a surgical mask. Davis walked toward the teller area of the bank and pretended to cash a check. Court documents show that Davis put on a black glove and pulled out a semi-automatic handgun, pointed the firearm at a teller and yelled, “Don’t move.” Davis then jumped over the counter, ordered the bank employees to lay on the ground, and began to grab cash from the teller drawers. Davis also told the bank employees he had planted a device that would release toxic gas if they moved before two minutes passed. Davis finished emptying the cash drawers and exited the bank.
The Bank Robbery in Chapel Hill, North Carolina
On April 3, 2021, at approximately 12:40 p.m., Davis robbed a PNC bank located at 841 Willow Drive, in Chapel Hill, North Carolina. According to court records, Davis entered the bank wearing a UNC baseball cap, a mask, sunglasses, and surgical gloves. He approached a teller and, as with previous bank robberies, he inquired about cashing a check. After he was told he needed two forms of identification, Davis left the bank. He returned soon thereafter and jumped over the counter while brandishing a semiautomatic pistol. Davis then ordered two tellers to step away from the counter and lie face-down on the floor. He then ordered one of the tellers to unlock the drawers. The teller complied, and Davis ordered her back to the floor. Davis took cash from the teller drawers and fled the scene.
The Bank Robbery in Spring Hill, Tennessee
On April 9, 2021, at approximately 12:06 p.m., Davis entered the First Citizens National Bank located at 2035 Wall Street in Spring Hill, Tennessee, wearing a UNC baseball cap, a surgical mask, sunglasses, and blue surgical gloves. Once again, Davis approached the teller and asked for a pen so that he could cash a check. Davis then drew a semiautomatic pistol, grabbed a teller by the wrist, and pointed the gun directly at her. Davis then ordered all the tellers to lie down on the floor and demanded money. A bank teller opened the bank vault and Davis took cash. Davis then moved two bank employees into a utility room and closed the door, before exiting the bank.
The Bank Robbery in Fayetteville, North Carolina
On May 8, 2021, at approximately 12:08 p.m., Davis entered the First Horizon Bank at 929 S. McPherson Church Road, in Fayetteville, North Carolina, wearing a baseball hat, sunglasses, black gloves, and a mask. Upon entering the bank, Davis approached a teller and asked him if he could cash a Wells Fargo check. The teller said that he could not and began to search for nearby Wells Fargo bank locations in an effort to assist. According to court documents, Davis then drew a black semiautomatic pistol and whispered to the teller that he did not want to hurt anyone. Davis ordered the teller to move behind the teller stations, and then pointed the gun at another teller and ordered them both to lie down on the floor. Davis demanded access to a cash machine, then the safe, and then the vault; but each time the tellers explained that they did not have ready access to any of those storage areas. Davis moved the two tellers at gunpoint to a nearby room and ordered them to stay put. Davis then found a bank employee working in another office, pointed the gun at her, and demanded to know how to access the safe. When the employee told Davis she did not know, he moved the bank employee into the room with the other tellers. Davis took cash from a desk drawer before he left the bank.
The Second Bank Robbery in Asheville, North Carolina
On May 20, 2021, at approximately 4:42 p.m., Davis entered the Wells Fargo bank located at 800 Merrimon Ave., in Asheville. According to court records, Davis was wearing a baseball cap, sunglasses, and a surgical mask. As in previous bank robberies, Davis walked to the counter and told the teller he wanted to cash a check. When the teller asked for identification, Davis left the bank purportedly to retrieve his ID. Davis returned a short time later, approached the counter, and drew a semi- automatic handgun and pointed it at the teller. Davis then jumped over the counter and told all four bank employees to get down on the ground. Once all four bank employees were on the floor, Davis emptied the cash drawers, slammed the counter, and ordered the employees not to move for two minutes because he had placed a motion sensor. Davis then fled the scene.
The Bank Robbery in Rome, Georgia
According to court documents, on May 28, 2021, at approximately 10:50 a.m., Davis entered the SunTrust (now Truist) bank located at 2401 Shorter Avenue, in Rome, Georgia, wearing a hat, sunglasses, and a mask. After he entered the bank, Davis approached a teller and inquired about opening an account but then left the bank. At approximately 11:21 a.m., Davis re-entered the bank, walked into an occupied office, and at gunpoint walked the bank employee out of the office and toward the teller counter. Davis then ordered the tellers to lie down on the floor and vaulted over behind the counter while brandishing the firearm. Another bank employee entered the room and Davis pointed the gun at her and ordered her to get on the floor before he took cash from the bank and fled the scene.
On June 9, 2021, the FBI executed a search warrant at Davis’s home in Georgia. Davis was arrested at the scene. FBI agents also seized several items of clothing consistent with items depicted in surveillance footage at the various robberies, including shoes, a hat, pants, and a jacket. FBI agents also found a firearm that was consistent with the firearm Davis used during
the robberies.
Davis is currently 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 in Asheville, the Asheville Police Department, and the Hendersonville Police Department for their investigation of the case in Western North Carolina and thanked the FBI field offices and local law enforcement agencies in North Carolina, Tennessee, and Georgia for their invaluable assistance.
U.S. Attorney King also thanked the U.S. Attorneys’ Offices in the Middle and Eastern Districts of North Carolina, the Middle and Eastern Districts of Tennessee, and the Northern District of Georgia for their coordination and cooperation throughout Davis’s prosecution.
Assistant U.S. Attorney Don Gast of the U.S. Attorney’s Office in Asheville prosecuted the case.
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North Carolina Laboratory and Owner Agree to Pay More Than $1.9 Million to Resolve False Claims Act AllegationsRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Aspirar Medical Lab, LLC (Aspirar) and owner Pick Chay (Chay), located in Cary, North Carolina, have agreed to pay $1,951,090 to resolve allegations that they violated the False Claims Act by knowingly billing North Carolina Medicaid (Medicaid) for urine drug tests that were medically unnecessary and tainted by illegal kickbacks.
The United States alleged that from March 25, 2016, through September 19, 2017, Aspirar submitted claims to Medicaid for urine drug tests that were false. The claims were false because they were tainted by an illegal kickback arrangement between Aspirar and BPolloni Consulting, LLC (BPolloni), an entity that referred urine drug tests to Aspirar. Under the arrangement, Aspirar paid BPolloni for each urine drug test that BPolloni or another entity, Do It 4 the Hood Corporation (D4H), referred to Aspirar. The Chief Executive Officer of BPolloni and other individuals who operated D4H previously pleaded guilty to conspiracy to commit health care fraud and Anti-Kickback Statute violations arising from D4H’s illegal kickback arrangements with urine drug testing laboratories.
In addition to being tainted by illegal kickbacks, the United States alleged that claims for drug tests that Aspirar submitted to Medicaid were false because the tests were medically unnecessary. Specifically, the orders for the tests were not patient-specific and did not reflect a qualified medical provider’s determination of the patient’s need for the testing.
“Illegal referral and kickback schemes increase profits for wrongdoers and cause taxpayer-funded health care programs like Medicaid to pay for items or services that patients may not need,” said U.S. Attorney King. “The resolution of this case demonstrates our Office’s continuing commitment to hold all responsible parties to account for the submission of claims to Medicaid and other federally funded health care programs that are not medically necessary and are tainted by illegal kickbacks.”
The civil settlement and resolution of claims obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office and the FBI in Charlotte, with assistance from 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 investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act.
Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Matthews, N.C. Man Is Sentenced as A Career Offender for Cocaine Distribution and Illegal Gun PossessionRead the Press Release
CHARLOTTE, N.C. – Shannon Demond Lawrence, 45, of Matthews, N.C., has been sentenced to 176 months in prison followed by three years of supervised release for cocaine distribution and illegal gun possession, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. At today’s hearing, the Court enhanced Lawrence’s sentence due to his classification as a Career Offender, stemming from his multiple prior criminal convictions, to include drug distribution and firearms offenses.
U.S. Attorney King is joined in making today’s announcement by 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).
According to filed court documents and court proceedings, law enforcement initiated a federal investigation into Lawrence for suspected drug trafficking. Court documents show that, on multiple occasions between October and November 2021, Lawrence sold cocaine and fentanyl to an undercover detective. During two drug transactions, the undercover detective observed that Lawrence possessed firearms, including an AK-47 assault rifle. Court records show that, in addition to selling narcotics, Lawrence sold the undercover detective two firearms, one of which was loaded.
On August 23, 2022, Lawrence pleaded guilty to distributing cocaine and possession of a firearm by a convicted felon. 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 thanked the ATF and CMPD for their investigation of the case.
The prosecution was handled by Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville.
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.
Jamaican National Pleads Guilty to Conspiracy Charge in Connection with Fraudulent Lottery Scheme that Targeted Elderly AmericansRead the Press Release
A Jamaican national, who was previously extradited to the United States from Jamaica, pleaded guilty in the U.S. District Court for the Western District of North Carolina in connection with a fraudulent Jamaica-based lottery scheme that targeted elderly victims in the United States.
According to court documents, Antony Linton Stewart, 39, of St. James Parish, Jamaica, pleaded guilty to one count of conspiracy to commit mail and wire fraud.
As part of his plea agreement, Stewart admitted that he contacted elderly Americans by telephone and falsely told them that they had won money and other prizes in a sweepstakes or lottery. Stewart told victims that they needed to send money to pay fees and taxes on their winnings. Stewart contacted victims repeatedly for as long as they could be persuaded to send additional money. At Stewart’s direction, victims used wire transfers and the U.S. Postal Service, among other means, to send money to individuals in the United States and Jamaica who served as intermediaries and transmitted the money to Stewart. In fact, no lottery ever existed, and no victim ever received any money or other prizes. The scheme defrauded victims out of hundreds of thousands of dollars.
“The Department of Justice’s Consumer Protection Branch is committed to investigating fraudulent schemes targeting elderly Americans, wherever those schemes are based,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Stewart is the latest example in the department’s ongoing efforts to root out and deter fraud from foreign locations that targets our most vulnerable consumers.”
“Each year, millions of older Americans suffer heavy financial losses in the hands of scammers operating in the United States and abroad,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “Today’s guilty plea underscores our efforts to investigate and bring to justice perpetrators of elder fraud schemes no matter where they originate. We will continue to join forces with our law enforcement counterparts to do all we can to stop these criminals from stealing from our seniors.”
“The U.S. Postal Inspection Service (USPIS) is committed to investigating those who use the U.S. Mail to commit fraud and target elderly and vulnerable American citizens both domestically and abroad,” said Inspector in Charge Christopher A. Nielsen of the USPIS Philadelphia Division. “Today’s plea exemplifies the unwavering efforts of Postal Inspectors in collaboration with our law enforcement partners – here in the United States and around the world – to bring these callous criminals to justice.”
The USPIS investigated the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and extradition of Stewart. The U.S. Marshals Service also provided significant assistance.
The case is being prosecuted by Senior Trial Attorney Raquel Toledo and Trial Attorney Ryan E. Norman of the Civil Division's Consumer Protection Branch, with the assistance of Assistant U.S. Attorneys Jenny G. Sugar and Daniel Ryan for the Western District of North Carolina.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish, and other languages are available.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of North Carolina visit their website at www.justice.gov/usao-wdnc. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Jamaican National Pleads Guilty to Conspiracy Charge in Connection with Fraudulent Lottery Scheme That Targeted Elderly AmericansRead the Press Release
CHARLOTTE, N.C. – A Jamaican national, who was previously extradited to the United States from Jamaica, pleaded guilty in the U.S. District Court for the Western District of North Carolina in connection with a fraudulent Jamaica-based lottery scheme that targeted elderly victims in the United States.
According to court documents, Antony Linton Stewart, 39, of St. James Parish, Jamaica, pleaded guilty to one count of conspiracy to commit mail and wire fraud.
As part of his plea agreement, Stewart admitted that he contacted elderly Americans by telephone and falsely told them that they had won money and other prizes in a sweepstakes or lottery. Stewart told victims that they needed to send money to pay fees and taxes on their winnings. Stewart contacted victims repeatedly for as long as they could be persuaded to send additional money. At Stewart’s direction, victims used wire transfers and the U.S. Postal Service, among other means, to send money to individuals in the United States and Jamaica who served as intermediaries and transmitted the money to Stewart. In fact, no lottery ever existed, and no victim ever received any money or other prizes. The scheme defrauded victims out of hundreds of thousands of dollars.
“The Department of Justice’s Consumer Protection Branch is committed to investigating fraudulent schemes targeting elderly Americans, wherever those schemes are based,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Stewart is the latest example in the department’s ongoing efforts to root out and deter fraud from foreign locations that targets our most vulnerable consumers.”
“Each year, millions of older Americans suffer heavy financial losses in the hands of scammers operating in the United States and abroad,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “Today’s guilty plea underscores our efforts to investigate and bring to justice perpetrators of elder fraud schemes no matter where they originate. We will continue to join forces with our law enforcement counterparts to do all we can to stop these criminals from stealing from our seniors.”
“The U.S. Postal Inspection Service (USPIS) is committed to investigating those who use the U.S. Mail to commit fraud and target elderly and vulnerable American citizens both domestically and abroad,” said Inspector in Charge Christopher A. Nielsen of the USPIS Philadelphia Division. “Today’s plea exemplifies the unwavering efforts of Postal Inspectors in collaboration with our law enforcement partners – here in the United States and around the world – to bring these callous criminals to justice.”
The USPIS investigated the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and extradition of Stewart. The U.S. Marshals Service also provided significant assistance.
The case is being prosecuted by Senior Trial Attorney Raquel Toledo and Trial Attorney Ryan E. Norman of the Civil Division's Consumer Protection Branch, with the assistance of Assistant U.S. Attorneys Jenny G. Sugar and Daniel Ryan for the Western District of North Carolina.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish, and other languages are available.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of North Carolina visit their website at www.justice.gov/usao-wdnc. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Georgia Inmate Is Sentenced to Prison for Trafficking MethamphetamineRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell has sentenced Alfonso Roman Brito, 44, to 25 years in prison, followed by five years of supervised release for trafficking 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, Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), Sheriff Banks Hinceman of the Burke County Sheriff’s Office, 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 evidence introduced at trial Brito’s trial, in 2019, law enforcement were conducting an investigation into a Drug Trafficking Organization (DTO) operating in Catawba and Burke Counties and surrounding communities. As trial evidence established, the investigation determined that Brito, who was an inmate in the Georgia Department of Corrections, was in charge of coordinating the shipment of multiple kilograms of methamphetamine from Atlanta into Western North Carolina. According to information presented at trial, between 2019 and 2021, Brito orchestrated the delivery of more than 100 kilograms of methamphetamine from Georgia to North Carolina, which was then sold to drug networks in the area for local distribution.
In December 2022, a federal jury convicted Brito of conspiracy to distribute and to possess with intent to distribute methamphetamine and distribution of methamphetamine. Six co-defendants have also been sentenced for drug related offenses in connection with this case:
- Charles Ray Hildebran was sentenced to 180 months in prison and five years of supervised release.
- Jeffrey Ben Pavkovich was sentenced to 151 months in prison and five years of supervised release.
- Billy Dean Potter was sentenced to 132 months in prison and three years of supervised release.
- Phillip Anthony Godfrey was sentenced to 120 months in prison and five years of supervised release.
- Britton Nicole Metcalf was sentenced to 120 months in prison and five years of supervised release.
- Marcos Alan Martinez was sentenced to 46 months in prison and two years of supervised release.
In making today’s announcement U.S. Attorney King commended the DEA, HSI, the Burke County Sheriff’s Office, and the Catawba County Sheriff’s Office for leading the investigation. U.S. Attorney King also thanked the Caldwell County Sheriff’s Office, the Newton Police Department, the Hickory Police Department, and the Georgia Department of Corrections for their assistance in the investigation.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville 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.
Bulk Fentanyl Trafficker Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Jermaine Douglas Grandy, 42, Lenoir, N.C., has been sentenced to 35 years in prison followed by five years of supervised release for trafficking fentanyl and illegal gun possession, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), and Sheriff Alan C. Jones of the Caldwell County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to evidence presented at Grandy’s trial and documents filed with the court, between December 2020 and February 2021, Grandy conspired with others to distribute and to possess with intent to distribute fentanyl in Caldwell County and surrounding areas. Trial evidence established that Grandy obtained the drugs from a supply source in Arizona, and frequently travelled there to purchase fentanyl pills in bulk quantities. On February 14, 2021, as Grandy was returning to North Carolina from a trip to Arizona, law enforcement conducted a traffic stop of Grandy’s vehicle in Granite Falls, N.C. Upon searching the vehicle, law enforcement located inside the vehicle three loaded 9mm pistols, and approximately 34,221 pills wrapped in fourteen bundles concealed in the air vent under the hood of the car. Later the same day, law enforcement executed a search warrant at a residence associated with Grandy, from which they seized a money counter, two digital scales, and other items consistent with the packaging and distribution of narcotics. Law enforcement also seized 29 illegal firearms, including semi-automatic rifles and handguns, ammunition, and approximately 79 magazines.
In February 2023, a federal jury convicted Grandy of conspiracy to distribute and to possess with intent to distribute fentanyl, possession with intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking crime, and possession of a firearm by a convicted felon. Grandy is currently in federal custody and will be transferred to the custody of the federal Bureau of Prison upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended the ATF, the SBI, and the Caldwell County Sheriff’s Office for their investigation of the case and thanked the Catawba County Sheriff’s Office, the Hickory Police Department, and the Drug Enforcement Administration for their assistance.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville is prosecuting 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.
Methamphetamine Trafficker Is Found Guilty of Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that a federal jury has convicted Jonathan Craig Otuel, 36, of Stallings, N.C., of conspiracy to traffic methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. Otuel previously pleaded guilty to possession of a firearm by a convicted felon.
According to court documents, trial evidence, and witness testimony, on November 19, 2019, officers with the Pineville Police Department responded to a call for service at a hotel room, where they located Otuel and three other individuals. Officers also located methamphetamine. Trial evidence established that a search warrant for the hotel room was issued. During the search, law enforcement recovered multiple bags of methamphetamine, and a firearm. Law enforcement also recovered from the hotel parking lot an additional firearm, which the defendant had thrown over the balcony. Over the course of the investigation, law enforcement determined that Otuel was responsible for trafficking significant amounts of methamphetamine in Mecklenburg and Gaston Counties.
Otuel remains in federal custody. A sentencing date has not been set. The charges of conspiracy to traffic methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime each carry a statutory maximum sentence of life in prison. The charge of possession of a firearm by a convicted felon carries a maximum sentence of ten years in prison. A sentencing date has not been set.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement, U.S. Attorney King thanked Homeland Security Investigations, the Drug Enforcement Administration, the Pineville Police Department and the Gaston County Police Department for their investigation of the case.
Assistant U.S. Attorneys Regina Pack and Timothy Sielaff of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Boone, N.C. Man Is Sentenced to Prison for Possession of Child PornographyRead the Press Release
CHARLOTTE, N.C. – Stephen Allen Hill, 75, of Boone, N.C. was sentenced late yesterday to 48 months in prison for possession of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Hill was ordered to serve 20 years of supervised release, to register as a sex offender after he is released from prison, and to pay a $100 special assessment, a $5,000 Justice for Victims of Trafficking Act (JTVA) assessment, a $17,000 special assessment under the Amy, Vicky, and Andy Child Pornography Victim Assistance Act (AVAA), and a $30,000 fine.
Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), and Chief Andy LeBeau of the Boone Police Department join U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, in October 2020, law enforcement became aware that an individual, later identified as Hill, was using a peer-to-peer network to share child pornography with other users. According to court records, on January 15, 2021, law enforcement executed a search warrant at Hill’s residence in Boone. During the execution of the search warrant, law enforcement seized several electronic devices, including a computer, hard drives, and Hill’s cellphone. A forensic examination of the devices revealed that they contained images and videos depicting the sexual abuse of children, including toddlers and infants engaging in sadistic and masochistic conduct. In total, Hill possessed in excess of 29,000 images and 340 videos depicting child pornography.
On December 16, 2022, Hill pleaded guilty to possession of child pornography that involved a prepubescent minor who had not attained 12 years of age.
In making the announcement, U.S. Attorney King thanked the SBI and the Boone Police Department for their investigation of the case.
Assistant United States Attorney Nick J. Miller, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney's Office to Participate in Community Events During National Night OutRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King along with federal prosecutors and office personnel with the Western District of North Carolina will join community organizers,
National Night Outneighbors, and law enforcement partners to participate in National Night Out events on Tuesday, August 1, 2023.
National Night Out (NNO) is an annual community-building campaign that promotes partnerships and camaraderie between law enforcement and the communities they serve to make neighborhoods safer places to live. Millions take part in National Night Out across thousands of communities throughout the country on the first Tuesday of August in most areas of the country.
During this year’s National Night Out, U.S. Attorney King and members of her Office will attend community events organized by the Hidden Valley and the Historic Camp Greene neighborhoods, and the West Boulevard Neighborhood Coalition.
“The first and most important job of law enforcement is to protect the rights and safety of our communities and address crime problems. To do that, we must understand the unique challenges communities face, and that begins with community engagement. Participation in events like National Night Out provides an opportunity to increase public trust, strengthen ties between law enforcement and the communities we serve, and demonstrates our commitment to sustaining strong and safe neighborhoods,” said U.S. Attorney King.
National Night Out was established in 1984 with funding from the Bureau of Justice Assistance of the U.S. Department of Justice. The program is administered by the National Association of Town Watch, a nationwide non-profit organization.
Coordinated by local law enforcement and trained volunteers, National Night Out provides a great opportunity to bring police and neighbors together under positive circumstances. Neighborhoods host block parties, cookouts, festivals, parades, safety demonstrations, seminars, youth events, visits from emergency personnel, and more. National Night Out sends a message that neighbors are united and working together to keep their communities and each other safe.
For more information, visit https://natw.org/.
Monroe, N.C. Woman Is Charged with Embezzling More Than $2.3 Million from Her EmployerRead the Press Release
CHARLOTTE, N.C. – A federal indictment was unsealed in federal court today, charging Kristy Lawrence, 44, of Monroe, N.C., with wire fraud, for allegedly embezzling more than $2.3 million from her employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to allegations in the indictment, from 2016 to April 2022, Lawrence was employed by a small family business located in Monroe. Over the course of her employment, Lawrence allegedly worked in a purchasing and accounting function for the business and handled the company’s books and records. The indictment alleges that Lawrence embezzled millions from the company by making multiple unauthorized electronic transfers from the company’s bank account to make payments for her personal benefit, including to pay her credit cards. Lawrence allegedly covered up the fraud by using her position and access to falsify documents and make fraudulent accounting entries in the company’s books and records. Lawrence’s alleged embezzlement scheme was uncovered after the defendant was on extended leave and another employee took over her responsibilities.
Lawrence was released on bond after her initial appearance. The wire fraud charge carries a maximum sentence of 20 years in prison and a $250,000 fine.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King thanked the FBI in Charlotte and the Union County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Former Charlotte Housing Provider Is Sentenced to Prison for Medicaid Fraud and Money Laundering ConspiracyRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Delores Jordan, 54, of Charlestown, Indiana, to 30 months in prison followed by three years of supervised release for her role in a $15 million conspiracy to defraud the North Carolina Medicaid program (Medicaid), announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Bell also ordered Jordan to pay $5,879,340 in restitution.
Joining U.S. Attorney King in making today’s announcement are Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), and Attorney General Josh Stein, who oversees the North Carolina Medicaid Investigations Division (MID).
According to filed court documents and court proceedings, Jordan was the owner of Legacy Housing, which provided subsidized housing to tenants in Charlotte and Greensboro. Jordan’s co-conspirator, Donald Booker, owned and operated United Diagnostic Laboratories (UDL), a urine toxicology testing laboratory, and United Youth Care Services (UYCS), a company that provided mental health and substance abuse treatment services. Court documents show that from January 2018 to December 2020, Jordan conspired with Booker and others to defraud Medicaid via a fraudulent drug testing scheme of urine samples of Medicaid-eligible beneficiaries.
As Jordan previously admitted in court, she along with other co-conspirators recruited housing-vulnerable individuals and other Medicaid-eligible beneficiaries for housing and other programs and services. Once enrolled, the beneficiaries were required to submit urine specimens for drug testing as a condition of their participation in the program. The specimens were provided to UDL and UYCS for medically unnecessary urine drug testing. Booker and his co-conspirators paid Jordan a kickback from the Medicaid reimbursements on the drug testing. Jordan also conspired with Booker to execute a conspiracy to launder the fraudulent proceeds in order to conceal and disguise the nature and source of the illegal kickback payments for the illicit drug testing referrals.
On December 9, 2022, Jordan pleaded guilty to health care fraud conspiracy and conspiracy to commit money laundering. In January 2023, Booker was convicted at trial of conspiracy to commit health care fraud, multiple violations of the Anti-Kickback Statute, money laundering conspiracy, and money laundering. Booker is awaiting sentencing.
The FBI, IRS-CI, and NC Medicaid Investigations Division investigated the case.
The prosecution for the government is handled by Assistant U.S. Attorneys Graham Billings and Mike Savage of the U.S. Attorney’s Office in Charlotte.
Catawba Co. Man Is Sentenced for Bank Robbery, COVID-19 Fraud, and Aggravated Identity TheftRead the Press Release
CHARLOTTE, N.C. –Spenc’r Denard Rickerson, 36, of Claremont, N.C., was sentenced today to six years in prison followed by two years of supervised release for committing bank robbery, wire fraud, and aggravated identity theft, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Rickerson was also ordered to pay restitution in the amount of $87,583.
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 court documents and evidence presented at Rickerson’s trial, between June 30, 2020, and March 20, 2021, Rickerson used false information to apply for a Paycheck Protection Program (PPP) loan and multiple Economic Injury Disaster Loans (EIDL) guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Trial evidence established that, in order to obtain the PPP loan, Rickerson submitted a fraudulent application for a non-existent company that contained a number of false information, including the purpose of the loan and the company’s payroll costs. Rickerson also submitted fraudulent applications for several loans under the EIDL program, in which he provided fake information about the number of company employees and gross revenues. As a result of the fraudulent PPP and EIDL loan applications, Rickerson received more than $84,233 in fraudulent funds intended to assist businesses impacted by the coronavirus pandemic.
Court documents show that, in addition to the fraudulent loan scheme, on March 18, 2021, Rickerson committed an armed robbery of a BB&T branch located at 12 North Main Avenue, in Newton, N.C. Rickerson used the stolen funds from the fraudulent loan scheme and the bank robbery to pay bills and to buy cryptocurrency.
Rickerson is in federal custody. He will be transferred to the custody of the Bureau of Prisons upon designation of a federal facility.
The FBI investigated the case with the assistance of the Newton Police Department.
Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte handled 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.
U.S. Attorney Dena J. King Appointed as Chair of the Attorney General's Subcommittee on Civil RightsRead the Press Release
CHARLOTTE, N.C. – United States Attorney Dena J. King has been selected to serve as Chair of the Civil Rights Subcommittee of the Attorney General’s Advisory Committee (AGAC) of U.S. Attorneys.
Since 1973, the AGAC has advised the Attorney General on matters of policy, procedure, and management impacting U.S. Attorneys’ Offices and represents the views of federal prosecutors across the country.
As Chair of the Civil Rights Subcommittee, U.S. Attorney King will spearhead the efforts of the Subcommittee to guide the AGAC on critical civil rights issues. U.S. Attorney King will also work with all 94 U.S. Attorneys’ Offices to provide leadership and make recommendations to the Attorney General and the Department of Justice through the AGAC, related to the protection and enhancement of the civil and constitutional rights of all people in the United States, with a special focus on our country’s most vulnerable populations.
“It is a great honor to serve as Chair of the AGAC’s Civil Rights Subcommittee,” said U.S. Attorney King. “I am looking forward to working collaboratively with my colleagues to continue to champion the Department’s efforts to advance civil rights, strengthen community trust, remove barriers to justice and fairness, and enhance inclusion and equal treatment for everyone in our society.”
U.S. Attorney King will continue to serve as a member of the Native American Issues Subcommittee (NAIS), which she previously chaired, and the Subcommittees for Violent and Organized Crime, and Law Enforcement Coordination, Victim Assistance and Community Relations.
Charlotte Man Pleads Guilty to Wire Fraud for $5.3 Million Investment Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Wynn A.D. Charlebois, 53, of Charlotte, pleaded guilty to wire fraud today, for leading a multi-million dollar investment fraud scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, join U.S. Attorney King in making today’s announcement.
According to court documents and the plea agreement, from 2015 through October 2022, Charlebois used companies he owned and controlled, including WC Private, Wilcox Hybrid, Damon Investments, and others, to perpetrate a multi-million dollar investment scheme that caused at least 39 victim investors and entities to lose more than $5.3 million. In furtherance of the scheme, Charlebois recruited victim investors including friends, family members, and social acquaintances, by falsely promising their money would be invested in risk-free investments, subscription agreements, and loans. Court documents show that Charlebois fraudulently asserted in the investment agreements presented to victim investors that he and his entities held stock options for particular companies, and that the investors could purchase the options and gain specified profits. Contrary to the defendant’s claims, instead of using the investors’ money as promised, Charlebois used the funds to make Ponzi-style payments to other investors, and on personal expenses including to pay private school tuition, make mortgage payments, and pay for luxury travel and meals at restaurants.
Charlebois was released on bond following his plea hearing. The wire fraud charge carries a maximum penalty of 20 years in prison and a $500,000 fine. A sentencing date has not been set.
The FBI and USPIS investigated the case.
Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
California Man Pleads Guilty to Securities Fraud for Orchestrating an Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Gustavo Guzman, 60, previously of Fullerton, Calif., pleaded guilty to securities fraud today for orchestrating a $2 million investment fraud scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, and North Carolina Secretary of State Elaine F. Marshall join U.S. Attorney King in making the announcement.
According to admissions Guzman made in connection with his guilty plea and filed court documents, from April 2010 to August 2015, Guzman, through various entities he controlled, including G2 Asset Management and East Egg Private Equity, defrauded approximately 10 investors of at least $2 million, by falsely representing that he would use the investors’ money to trade in options and other similar investments. Instead of investing the funds as promised, Guzman stole a substantial portion of the investors’ money and used it to fund his personal lifestyle, including to make large credit card payments and cash withdrawals, and to pay for personal expenditures. Guzman suffered massive trading losses with the money that he did invest and used some of the victim’s money to make Ponzi-style payments to other investors. Guzman admitted that in order to conceal the trading losses and the fraudulent scheme, and to prevent his victims from redeeming their investments and complaining to authorities, he lied to his victims about the status of their investments, and provided them with fake documents, including sham IRS forms and fraudulent account statements.
Guzman has been in federal custody since he was extradited from Australia to the United States in November 2022. At sentencing, he faces a sentence of up to 20 years in prison and a $5 million fine. A sentencing date has not been set. The U.S. Securities and Exchange Commission conducted a parallel investigation that resulted in the entry of a default judgment against Guzman in Civil Action No. 3:17-cv-00276 (WDNC).
In making todays’ announcement, U.S. Attorney King commended the FBI in Charlotte and the Securities Division of the North Carolina Department of the Secretary of State for their investigation of the case. U.S. Attorney King also thanked the U.S. Marshals Service and the Justice Department’s Office of International Affairs for their significant support with the defendant’s extradition and with obtaining evidence from Australian authorities.
Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is prosecuting the case.