Western District of North Carolina
Press releases recorded for this federal judicial district.
Charlotte Woman Pleads Guilty to Federal Charges for $1.5 Million COVID-19 Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Jeannetta Blackmon, also known as Jeannetta Regan, 48, of Charlotte, pleaded guilty today to wire fraud and money laundering for obtaining more than $1.5 million in fraudulent Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan (EIDL) Program loans for herself and her customers, 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 joins U.S. Attorney King in making today’s announcement.
According to filed plea documents, other court filings, and Blackmon’s admissions during the plea hearing, from April 2020 to November 2021, Blackmon executed a scheme to defraud the U.S. Small Business Administration (SBA) and SBA-backed lenders by obtaining fraudulent COVID-19 disaster relief funds for her businesses, J Renee Enterprises, Jeannetta Renee Girls Talk (JR Girls Talk), and Jrenee Investments (JR Investments). To obtain the relief funds, Blackmon submitted applications and supporting documents that contained false and fraudulent information regarding her businesses’ income, number of employees, gross revenues, and expenses. Blackmon also created and submitted fabricated bank statements and checks, in furtherance of the scheme. As a result of the fraudulent loan applications, Blackmon received more than $319,000 in disaster relief funds.
Blackmon also admitted to obtaining more than $300,000 in loan preparation fees from customers who paid Blackmon to prepare and submit on their behalf PPP and EIDL loan applications that contained false information, to include false employment data, inflated business income and expenses, and false tax information. Based on the fraudulent information, Blackmon’s customers received more than $1.2 million in disaster relief funds. To avoid detection, Blackmon directed her customers to pay her fees in checks or peer-to-peer payments.
Blackmon was released on bond after her plea hearing. The wire fraud charge carries a maximum prison sentence of 20 years and a $250,000 fine. The maximum statutory penalty for the money laundering offense is 10 years in prison and a $250,000 fine. A sentencing date has not been set.
The FBI 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.
U.S. Postal Worker Is Indicted for Conspiracy to Commit Bank Fraud and Money LaunderingRead the Press Release
CHARLOTTE, N.C. – A federal indictment was unsealed in court today, following the arrest and initial appearance of Jakia McMorris, 32, of Charlotte, who is charged with conspiracy to commit bank fraud and money laundering conspiracy, 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), 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, from at least May 2021, McMorris was an employee of the U.S. Postal Service (USPS), working as a city carrier at the North Tryon Station in Charlotte. The indictment alleges that on or around September 13, 2021, McMorris reported that, while she was delivering mail, she lost a USPS universal key that could open many U.S. mailboxes. After that day, McMorris allegedly stopped reporting for work at the USPS.
According to allegations in the indictment, beginning in September 2021, McMorris and her co-conspirators executed a scheme to commit bank fraud by stealing more than $40,000 in checks, including from the U.S. mail. The indictment alleges that the co-conspirators used stolen universal USPS keys to open multi-unit outdoor mailboxes in Charlotte and steal mail. The stolen mail included business checks.
As part of the scheme, the indictment alleges that the co-conspirators deposited the stolen checks into bank accounts they controlled, including in bank accounts in McMorris’s name. It is alleged that the co-conspirators then quickly withdrew the cash from the accounts before the banks detected the fraud. McMorris allegedly received a portion of the funds as payment for using her bank accounts to perpetuate the scheme. As part of the conspiracy, the indictment also alleges that the co-conspirators attempted to disguise the payments made to the defendant by using the fraudulent proceeds in McMorris’s bank account to purchase money orders, which McMorris then deposited back into her bank accounts.
McMorris was released on bond following her initial appearance in federal court today. The bank fraud conspiracy charge carries a maximum penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy charge carries a statutory penalty of 20 years in prison and a $500,00 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 USPS-OIG for the investigation which led to the charges.
Assistant U.S. Attorney Jenny Sugar with the U.S. Attorney’s Office in Charlotte is prosecuting the case.
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In a separate case, federal charges were filed against Douglas Gumbs, 38, of Charlotte, for mail theft and related charges. According to allegations in the indictment, from 2022 to April 2023, Gumbs engaged in a mail theft and bank fraud scheme by stealing large quantities of U.S. mail from residential and business mailboxes in Charlotte. The stolen mail included business and individual checks, credit cards, tax forms, and other financial information. In 2022, Gumbs allegedly was found with more than 850 individual pieces of stolen mail.
The indictment alleges that Gumbs deposited the stolen checks into bank accounts he controlled and withdrew the funds before the financial institutions learned that the deposited checks were stolen. The indictment further alleges that Gumbs engaged in identity theft by creating false identification documents in the names of individuals whose mail Gumbs’ had stolen. Gumbs then allegedly used the victims’ stolen identities in furtherance of the fraud, including to access the victims’ bank accounts and to open new bank accounts in some of the identity theft victims’ names.
Gumbs is currently in federal custody. He is charged with receipt and possession of stolen mail, theft of mail left for collection, destruction of letter boxes and bank fraud. The receipt and possession of stolen mail and theft of mail left for collection charges carry a maximum penalty of five years in prison and a $250,000 fine. The destruction of letter boxes charge carries a maximum penalty of three years in prison and a$250,000 fine. The bank fraud charge carries a maximum penalty of 30 years in prison and a $1 million fine.
The charges against Gumbs are allegations and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
The FBI in Charlotte and the U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Repeat Offender and Prolific Fentanyl Trafficker Is Sentenced to over 15 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Gary Lee Davis, 56, of Charlotte, to 188 months in prison followed by 10 years of supervised release for trafficking fentanyl and cocaine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Karen Wingerd, Acting Special Agent in Charge of IRS Criminal Investigation (IRS CI), Charlotte Field Office, join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, in January 2021, Davis met a confidential source (CS) working with law enforcement and sold the CS 20 grams of fentanyl. During a subsequent meeting, Davis sold a kilogram of fentanyl to the CS, and arranged to sell the CS another kilogram in the near future. A few days later, law enforcement arrested Davis while he was on his way to meet with the CS and seized approximately 1.5 kilograms of fentanyl from his vehicle.
According to court documents, Davis admitted to receiving fentanyl and cocaine shipped in bulk via the U.S. Mail from a supplier based in California. Davis mailed cash drug proceeds back to his supply source in California. Davis also admitted to trafficking between 50 and 100 kilograms of fentanyl.
According to court records, Davis laundered his drug proceeds by buying luxury vehicles and renting several stash houses in Charlotte, which he used to store his drugs and drug proceeds. During the investigation, law enforcement seized a total of approximately 16 kilograms of fentanyl and four kilograms of cocaine. Law enforcement also seized six of Davis’s vehicles, including a Maybach and two Mercedes Benz vehicles, two Lexus vehicles, and a Chevrolet Corvette. Law enforcement also seized $300,000 in cash drug proceeds and two loaded firearms. Davis has a prior federal drug trafficking conviction from the Western District of North Carolina, and he is not permitted to own a firearm or ammunition.
“By day, Davis was as a sanitation worker for the City of Charlotte. By night, he was a bulk trafficker of fentanyl, a deadly substance that is devastating our communities. I commend our law enforcement partners for conducting an investigation that led to the largest federal seizure of fentanyl in this District. We will continue to focus our efforts on identifying large drug networks and major distributors like Davis and disrupting the flow of illegal fentanyl and other dangerous drugs into our communities,” said U.S. Attorney King.
“Fentanyl is extremely dangerous to the consumer and leaves behind a trail of devastation and destruction,” said Special Agent in Charge Murphy. “The defendant in this case had total disregard for the safety of others.”
On August 12, 2021, Davis 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.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
In making today’s announcement, U.S. Attorney King commended the DEA and IRS-CI for their investigation of the case and thanked CMPD for their assistance with Davis’s arrest.
Assistant United States Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Mooresville, N.C. Man Is Facing Federal Charges for Investment Scheme and COVID-19 FraudRead the Press Release
CHARLOTTE, N.C. – Steven Andiloro, 51, of Mooresville, N.C., is facing federal charges in connection with an alleged investment fraud scheme and for fraudulently obtaining more than $2.6 million in COVID-19 relief funds, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, and Hannibal “Mike” Ware, Inspector General of the Small Business Administration, Office of Inspector General (SBA-OIG), join U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, from 2018 to 2021, Andiloro operated an investment fraud scheme in which he induced victims to invest their money in businesses that were both real and fictitious. To induce victim investors to invest their money, Andiloro allegedly made false and fraudulent representations about where and how the victims’ money would be invested. For example, the indictment alleges that Andiloro promised some of his victim investors their money would be invested in a non-existent marijuana dispensary business in exchange for a ten percent ownership stake. Instead of investing his victims’ money as promised, Andiloro used the funds to pay for personal expenses and to make Ponzi-style payments to other investors.
The indictment alleges that from April 2020 to March 2021, Andiloro fraudulently obtained funds from the Paycheck Protection Program (PPP) by submitting fraudulent applications for COVID-19 relief loans intended for businesses that suffered economic hardship due to the coronavirus pandemic. The indictment alleges that the fraudulent applications Andiloro submitted to obtain the PPP funds contained false financial information about his businesses, including fake employment data and inflated revenues, costs, and payroll expenses. As a result of the scheme, the indictment alleges that Andiloro received more than $2.6 million in fraudulently obtained relief funds, which he used to fund his personal lifestyle and to make payments in furtherance of the investment fraud scheme.
The indictment charges Andiloro with securities fraud and wire fraud, which carry a maximum prison sentence of 20 years and a $250,000 fine for each offense, and money laundering, which carries a maximum penalty of 10 years in prison.
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 U.S. Secret Service, the FBI, and the SBA-OIG for the investigation which led to the charges.
Assistant U.S. Attorney Graham Billings with the U.S. Attorney’s Office in Charlotte is prosecuting the case.
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.
Conover, N.C. Woman Is Charged with Mail Fraud and Identity Theft for Stealing More Than $300,000 from Elderly CoupleRead the Press Release
CHARLOTTE, N.C. – Andrea Brawley, 45, of Conover, N.C., is facing federal charges for stealing more than $300,000 from two elderly relatives, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. A federal grand jury in Charlotte returned a criminal indictment this week, charging Brawley with mail fraud and aggravated identity theft.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina 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 allegations in the indictment, from August 2016 to January 2023, Brawley engaged in a scheme to defraud the elderly couple identified in court documents as J.S. and M.S., by exploiting her relationship with the victims to steal their money and property. The indictment alleges that Brawley gained access to the victims’ personal and company bank accounts, which she was expected to use to manage the couple’s personal and business affairs and to pay routine bills. Instead, Brawley allegedly misused her access to transfer funds to herself, causing the victims to sustain significant financial losses. For example, Brawley allegedly failed to make payments due on the victims’ home equity line of credit on their residence. As a result, the victims’ residence went into foreclosure and the couple lost their home. Brawley also allegedly drained the victims’ retirement accounts by forging retirement distribution forms without the victims’ knowledge and consent, causing them further financial hardship. Over the course of the scheme, Brawley allegedly defrauded J.S. and M.S. and M.S.’s company of more than $300,000.
As alleged in the indictment, Brawley concealed the fraudulent scheme from J.S. and M.S. by making false representations about the cause of the foreclosure and about the state of J.S. and M.S.’s finances and personal affairs. The indictment alleges that Brawley also isolated J.S. and M.S. and limited their contact with their friends and family by taking the victims’ cell phones, impersonating them in communications with third parties, transporting them to various locations around the state, and preventing them from returning to their residence. The indictment further alleges that, in furtherance of the scheme, Brawley engaged in identity theft by using and attempting to use one or more means of identification that belonged to J.S. and M.S., including their names, addresses, and unique account numbers.
“Elder financial abuse continues to rise at an alarming rate. Unfortunately, when older adults are victims of financial exploitation it is incredibly difficult for them to recover financially and recoup their losses. And when the fraud is perpetrated by a trusted friend or close family member, the added emotional devastation can be overwhelming,” said U.S. Attorney King. “My Office’s elder financial exploitation cases receive the priority they deserve, and we are committed to doing all we can to combat elder financial abuse and ensure that older adults are supported and protected from fraud.”
“When you stop and consider the true impact of elder financial fraud, it is devastating. People should not work 40 years or longer only to have their life savings swindled away,” said Special Agent in Charge DeWitt. “The FBI will work tirelessly to protect the elderly and help educate them and those who love them, how not to fall victim to fraud.”
“My office is striving to combat the victimization of our older adults,” said Sheriff Brown. “Elder financial abuse often has a lasting and debilitating effect, especially when a close trust or confidence is violated. We will continue working with our local, state and federal partners to seek justice for these victims.”
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 mail fraud offense carries a maximum penalty of 20 years in prison. The aggravated identity theft charge carries a maximum sentence of two years in prison, consecutive to any other term of incarceration imposed.
In making today’s announcement, U.S. Attorney King thanked the FBI in Charlotte and the Catawba County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Graham Billings with the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
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 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
U.S. Attorney Dena J. King Participates in National Recognition Week for “Do the Write Thing ” Winners in Washington, D.C.Read the Press Release
CHARLOTTE, N.C. – This week, U.S. Attorney Dena J. King participated in the National Recognition Week for the winners of the “Do the Write Thing” essay challenge in Washington, D.C., organized by the National Campaign to Stop Violence.
The Do the Write Thing (DtWT) challenge is a program of the National Campaign to Stop Violence, which seeks to encourage middle school students to express the impact of violence in their lives through writing, and to empower students to become catalysts for positive change by sharing their ideas on ways to reduce youth violence.
U.S. Attorney King serves as Chair of the DtWT Committee in Asheville. In May, U.S. Attorney King announced the two winners of the essay competition in Asheville, Ace Wilkins from Asheville Middle School, and Hannah-Grace Tweedie from Cane Creek Middle School. U.S. Attorney King also attended the DtWT ceremony in Charlotte, where Aaliyah Williams-Camp from Eastway Middle School, and Michael Tadi from Coulwood STEM Academy were announced as the winners of the essay competition in Charlotte.
As overall winners of the essay challenge, the four students were designated as DtWT Student National Ambassadors. As Ambassadors, the students, their parents/guardians and the teachers who submitted their essays were invited to the National Recognition Week, that took place from July 15 to July 19, in the nation’s capital. While there, the Ambassadors participated in a number of events, including a visit to the U.S. Supreme Court, and a meeting with members of Congress at the U.S. Capitol, where the students had an opportunity to discuss a number of topics including the problem of youth violence. In addition, the students were honored at an embassy reception hosted by the Ambassador from the State of Kuwait to the United States. A highlight of the week was a visit to the Library of Congress where the National Ambassadors’ essays can be viewed by the public.
“I am very proud of our Asheville and Charlotte National Ambassadors for this great accomplishment. I am confident that this experience has fueled their drive to achieve their goals and strive to reach their full potential,” said U.S. Attorney King. “Words have incredible power and can make ideas, hopes, and dreams become a reality. Do the Write Thing is a unique opportunity, as it allows young people to express their experiences through their writings, communicate their insights about the impact of violence in their lives, and learn how they can become agents of change.”
For more information on the National “Do the Write Thing Challenge” program please visit http://www.dtwt.org.
Paralegal Is Charged with Embezzling $1.5 Million from Law Firm's ClientsRead the Press Release
CHARLOTTE, N.C. – Jennifer Elaine Roarke, 54, of Hickory, N.C., was indicted on wire fraud charges for embezzling more than $1.5 million from the clients of a law firm where she was employed, 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 joins U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, from 2007 to 2021, Roarke, who is also known as Jennifer Claveria, was employed as an assistant and a paralegal for a law firm in Hickory, North Carolina. The law firm handled, among other things, the administration and management of trusts for clients, including the trusts’ bank accounts. As part of her duties, Roarke was responsible for opening mail, depositing checks into trust bank accounts, and processing invoices. As alleged in the indictment, from 2015 to 2021, Roarke misused her access and position with the law firm to embezzle more than $1.5 million from the trusts of the law firm’s clients. Roarke executed the embezzlement scheme by making hundreds of unauthorized wire transfers from bank accounts associated with the law firm’s clients’ trusts into bank accounts controlled by Roarke. Roarke allegedly used the embezzled funds to pay for personal items, make mortgage, car, and credit card payments, and to fund an extravagant lifestyle.
The information and 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 prison sentence of 20 years and a $250,000 fine.
In making today’s announcement, U.S. Attorney King credited the FBI for the investigation which led to the charges.
Assistant U.S. Attorney Cassye Cole with the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
Convicted Felon on Federal Supervised Release Is Sentenced to Prison for Illegal Gun PossessionRead the Press Release
CHARLOTTE, N.C. – Jermaine Whitaker, 44, of Charlotte, was sentenced today to 92 months in prison followed by three years of supervised release for illegal possession of a firearm, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to court documents and today’s court proceedings, in 2015, Whitaker was convicted of drug and firearm offenses in the Western District of North Carolina and was ordered to serve 84 months in prison followed by a term of supervised release. In June 2021, CMPD officers executed an arrest warrant for the defendant for violating the terms of his supervised release. While executing the arrest warrant at a residence in Charlotte, CMPD officers located a loaded firearm and ammunition. Law enforcement determined that the firearm belonged to Whitaker and was reported stolen. Court records show that Whitaker paid $80 to purchase the firearm.
In announcing today’s sentence U.S. Attorney King said, “Whitaker violated federal gun laws that prohibit convicted felons from possessing firearms. He further broke the law by obtaining a stolen gun from an illegal source. We will continue to work with our law enforcement partners to remove illegal firearms from our communities and hold illegal gun possessors accountable for their actions,” said U.S. Attorney King.
“Possession of a firearm by a felon is illegal and jeopardizes the safety of the community,” said Special Agent in Charge Mims. “Recovering stolen firearms and keeping guns out of the hands of prohibited individuals plays an important role in reducing violent crime and better protecting our neighborhoods.”
On June 24, 2022, Whitaker pleaded guilty to possession of 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.
In making today’s announcement, U.S. Attorney King thanked the ATF and CMPD for their investigation of the case.
Assistant United States 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.
Charlotte Business Owner and Disaster Relief Loan “Consultant” Is Indicted for $1.2 Million COVID-19 Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – A federal grand jury in Charlotte has returned a criminal indictment charging Glynn Paul Hubbard, Jr., 45, of Charlotte, with wire fraud and money laundering, for allegedly obtaining more than $1.2 million in fraudulent Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan (EIDL) Program loans for himself and his customers, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Karen Wingerd, Acting Special Agent in Charge of IRS Criminal Investigation (IRS CI), Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, from March 31, 2020, to August 1, 2020, Hubbard, Jr. submitted fraudulent PPP loan and EIDL applications to the U.S. Small Business Administration (SBA) and SBA-approved lenders, seeking to obtain relief funds for his businesses, Borrow My Ride, Balanced Society Corporation, The Regins Corporation, and GGGAB, Inc. To obtain the relief funds, the indictment alleges that Hubbard, Jr. falsified information in loan applications and supporting documentation, and provided false financial information, fake employment data, and fraudulent tax returns for his businesses. As a result of the scheme, the indictment alleges that Hubbard, Jr. received more than $570,000 in fraudulently obtained relief funds.
The indictment further alleges that Hubbard, Jr. also executed the scheme by submitting false and fraudulent applications for PPP and EIDL funds on behalf of customers, causing more than $660,000 in relief funds to be disbursed to his customers. Hubbard, Jr. allegedly promoted the fraudulent scheme through personal referrals and in social media posts where he advertised that he was a PPP loan/EIDL consultant. Over the course of the scheme, Hubbard, Jr. allegedly received improper loan preparer fees for his services totaling more than $150,000, and, to avoid detection, he allegedly required customers to pay the loan preparation fees in cash, via cashier’s checks, or wire transfers.
“Safeguarding taxpayer dollars and protecting disaster relief programs from fraud is a priority for my office,” said U.S. Attorney King. “Federal prosecutors are working side-by-side with investigators dedicated to identifying pandemic-related schemes and holding accountable individuals who sought to exploit COVID-19 economic relief programs put in place to help small businesses in a time of grave need.”
“During the pandemic, the defendant allegedly took advantage of a program intended to provide critical relief for businesses impacted by the COVID-19 outbreak,” said Acting Special Agent in Charge Wingerd. “IRS Cl is committed to bringing to justice to those who have exploited the pandemic for personal gain and have stolen from America’s taxpayers.”
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 prison sentence of 20 years and a $250,000 fine. The maximum statutory penalty for the money laundering offense is 10 years in prison and a $2500,000 fine.
In making today’s announcement, U.S. Attorney King credited IRS CI for the investigation which led to the charges.
Assistant U.S. Attorneys Caryn Finley and Cassye Cole with the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with U.S. Attorneys’ Offices and agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Career Offender Is Sentenced to 12+ Years on Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Allen Shunte Plowden, 38, of Charlotte, to 151 months in prison followed by six years of supervised release for cocaine distribution and illegal firearm possession, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to filed documents and court proceedings, in May 2020, law enforcement initiated an investigation into Plowden, after receiving information that the defendant was distributing narcotics in the Charlotte area. On September 27, 2020, law enforcement executed a search warrant at Plowden’s residence, seizing cocaine, drug paraphernalia, digital scales, and other items consistent with drug distribution. Law enforcement also seized $40,000 in drug proceeds and 16 illegal firearms, some of which had been reported stolen.
On October 25, 2021, Plowden pleaded guilty to possession with intent to distribute cocaine and possession of a firearm by a convicted felon. At today’s court hearing, Plowden’s sentence was enhanced due to his classification as a “Career Offender” based on multiple prior convictions, including Robbery and Distribution/Manufacture of Cocaine Base and Distribution of a Controlled Substance Near a School.
In making today’s announcement, U.S. Attorney King commended HSI and CMPD for their investigation of the case.
Assistant United States 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.
Durham, N.C. Man Is Sentenced to Prison for Operating an Unlicensed Cryptocurrency Business and Related Tax ChargesRead the Press Release
CHARLOTTE, N.C. – Jayton Gill, 35, of Durham, N.C., was sentenced to 21 months in prison followed by a year of supervised release today for operating an unlicensed money transmitting business and willful failure to file a tax return, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Gill was also ordered to pay a forfeiture money judgement in the amount of $475,000.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, and Karen Wingerd, Acting Special Agent in Charge of IRS Criminal Investigation (IRS CI), Charlotte Field Office, join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, from 2015 to 2021, Gill operated an unlicensed money transmitting business involving the exchange of millions of dollars of cash and other monetary instruments for cryptocurrencies such as Bitcoin and Monero. During the relevant time, Gill conducted thousands of transactions involving thousands of Bitcoins. As Gill previously admitted in court, he advertised his unlicensed money transmitting business on various public websites and made claims on one such website that he had conducted more than 4,200 transactions with 2,700 different parties. Gill also conducted unlicensed money transactions in person and via the U.S. Postal Service.
Court records show that Gill also failed to file U.S. Individual Income Tax Returns for tax years 2015 through 2019, despite earning significant income from his unlicensed money transmitting business and from investing in cryptocurrency.
On July 12, 2022, Gill pleaded guilty to operating an unlicensed money transmitting business and failure to file a tax return. He will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.
The FBI and IRS CI handled the investigation. Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Charlotte Tax Preparer Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – A Charlotte tax preparer was sentenced to 20 months in prison today for preparing and filing false tax returns, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Jessica Earlene Truesdale, 49, of Charlotte, was also ordered to serve one year of supervised release after completing her prison term and to pay $1,177,615 in restitution.
Karen Wingerd, Acting Special Agent in Charge of IRS Criminal Investigation (IRS CI), Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
According to court documents and statements made in court, Truesdale owned and operated Queen City Financial Company, LLC (Queen City Financial), a tax preparation business with three locations in the Charlotte area. Between 2014 and 2017, Truesdale prepared and filed fraudulent tax returns on behalf of her clients and earned at least $1 million in return preparation fees, which were paid directly from her clients’ refunds. Court documents show that Truesdale used several methods to falsify clients’ tax returns, including claiming false filing status and exemptions, American Opportunity credits, education credits, and earned income tax credits, among others. As a result of the false information contained in the fraudulent returns, Truesdale’s clients reduced their tax liabilities and received fraudulently inflated tax refunds. To further conceal the fraud, Truesdale regularly failed to review the completed tax returns with clients, except to inform them the amounts of their refunds. As a result, some clients received correspondence from the IRS or the State of North Carolina questioning items on their tax returns.
On February 17, 2022, Truesdale pleaded guilty to aiding and abetting in the preparation of a false tax return. Truesdale will be ordered to report the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked IRS CI for their investigation of the case.
Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Charlotte Drug Trafficker Is Sentenced to More Than 24 Years in Federal PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Herbert Eugene Brandon, 55, of Charlotte, to 292 months in prison for drug trafficking conspiracy, drug distribution and money laundering conspiracy, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Judge Cogburn also imposed five years of supervised release following incarceration.
According to filed documents and information introduced at the sentencing hearing, in 2019, law enforcement identified Brandon as a member of a Drug Trafficking Organization (DTO) associated with the CJNG Mexican drug cartel and responsible for distributing bulk quantities of methamphetamine and heroin throughout Western North Carolina, including in Mecklenburg and Gaston Counties. Over the course of the investigation, law enforcement conducted surveillance and controlled drug buys, during which they observed Brandon engage in several drug transactions with a Confidential Informant and with other local drug dealers. In addition to trafficking narcotics, Brandon engaged in money laundering activity, by sending drug proceeds via wire transfers to Mexico-based DTO members in amounts varying from $980 to $1,500 per transaction.
In October 2021, Brandon pleaded guilty to drug trafficking conspiracy and money laundering conspiracy, and distribution and possession with intent to distribute heroin and methamphetamine.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, Homeland Security Investigations, and the Gaston County Police Department for their coordination and investigation of the case.
Assistant United States Attorney Regina Pack, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Armed Bank Robber Is Sentenced to More Than 11 YearsRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Franklin Earl Lawrence, Jr., 50, of Gastonia, N.C., to 141 months in prison followed by three years of supervised release for bank robbery and firearms offenses, 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 Chief Trent Conrad of the Gastonia Police Department join U.S. Attorney King in making today’s announcement.
According to court documents and today’s sentencing hearing, on August 19, 2021, Lawrence robbed at gunpoint the Truist bank branch located at 3070 Union Road in Gastonia. Court records show that Lawrence entered the bank wearing a hat, wig, and glasses, approached a teller, pointed his loaded firearm at the teller and demanded money. After the teller complied, Lawrence turned to a second teller, pointed his firearm at her and demanded more money. The teller handed her cash over to Lawrence and the defendant fled the scene. Officers with the Gastonia Police Department tracked Lawrence at a nearby field. When the officers approached Lawrence, the defendant threw his firearm at the direction of one of the officers before he was arrested. At the time of the arrest, officers recovered from Lawrence’s fanny pack the shirt, hat, wig and glasses Lawrence wore during the robbery, as well as a loaded pistol and the money the defendant stole from the bank.
On February 24, 2022, Lawrence pleaded guilty to bank robbery and brandishing a firearm during, and in relation to, and in furtherance of a crime of violence. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
The FBI and the Gastonia Police Department investigated the case. 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. In 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 Summer Law Camp Introduces High School Students to A Career in the LawRead the Press Release
CHARLOTTE, N.C. – This week, 22 high school students attended the U.S. Attorney’s Office Summer Law Camp, for an introduction to the American Criminal Justice System and to learn more about what it takes to pursue a career in the law. The three-day program wrapped up on Wednesday, July 12, 2023, with the students participating in mock trials at the federal courthouse in Charlotte. U.S. District Judge Robert J. Conrad Jr. presided over the mock trials.
“Our Summer Law Camp is a great way to introduce young people to our criminal justice system and the diverse career paths available to them within the legal field,” said U.S. Attorney King. “The mock trials also give students an opportunity to better understand legal proceedings and trial advocacy, and experience first-hand what it’s like to be a lawyer in an interesting, fun, and interactive format.”
The U.S. Attorney’s Office Summer Law Camp is free of charge, and it is available to students in 9th through 12th grades who are interested in learning more about the legal profession. The program is taught by career federal prosecutors and it is designed to help students explore the justice system, learn about the Federal Rules of Evidence, gain basic advocacy skills, and encourage students to think as lawyers. In addition, participating students receive instruction on evidence collection, and have an opportunity to hear from guest speakers representing law enforcement agencies and the defense bar. During the mock trials, students actively participate in the court proceedings, with assigned roles as prosecutors, defense attorneys, and witnesses, tasked with delivering opening and closing statements, providing testimony, and conducting cross examinations.
“Our law camp provides students of all socio-economic backgrounds with an opportunity to be exposed to the legal profession, understand the legal process, and learn more about career options in the legal field,” said U.S. Attorney King. “But ultimately, the law camp is more than a lesson in civics or career preparation. The goal is to help young people gain a greater understanding of the power and responsibility they hold as citizens and the important role they play in ensuring that the criminal justice system is a place where they can make a difference for themselves, for their community, and, ultimately, for justice,” King added.
Additional information about the U.S. Attorney’s Office Summer Law Camp can be found here.
Lenoir, N.C. Felon Is Sentenced to 15 Years for Illegal Firearm Possession and Drug ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Jeremy David Greene, 47, of Lenoir, N.C., was ordered to serve 15 years in prison followed by five years of supervised release for possession of a firearm by a felon and possession with intent to distribute methamphetamine.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Sheriff Alan C. Jones, of the Caldwell County Sheriff’s Office, join U.S. Attorney King in making today’s announcement.
According to information in court documents and today’s sentencing hearing, , in April 2022, law enforcement received information that Greene was selling large amounts of methamphetamine in Caldwell County. Greene also had outstanding arrest warrants for state law violations. On April 14, 2023, law enforcement located Greene driving his vehicle in Lenoir. Court records show that law enforcement officers attempted to conduct a traffic stop of Greene’s vehicle, but Greene ignored law enforcement and sped away. Law enforcement deployed stop sticks, successfully stopping Greene’s vehicle, and Greene was arrested shortly thereafter.
According to court records, law enforcement searched Greene’s vehicle and seized more than 500 grams of methamphetamine, a 9mm pistol, 36 rounds of ammunition, and over $11,900 in cash. Greene has prior felony convictions, including Assault with a Deadly Weapon on Law Enforcement, and he is prohibited from possessing a firearm or ammunition.
Greene 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 ATF and the Caldwell County Sheriff’s Office for their investigation of the case and thanked the Caldwell County District Attorney’s Office for their invaluable assistance and coordination.
Special Assistant U.S. Attorney (SAUSA) William Wiseman of the U.S. Attorney’s Office in Charlotte prosecuted the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 26th Prosecutorial District and the United States Attorney’s Office.
Convicted Felon Is Sentenced to Prison for Illegal Gun PossessionRead the Press Release
CHARLOTTE, N.C. – Nike Apollo Perry, 30, of Mount Holly, N.C., was sentenced to 84 months in prison today for possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Terry Burgin, United States Marshal of the United States Marshals Service for the Western District of North Carolina, and Jamaal Thompson, Chief Inspector of the United States Marshals Service, Carolinas Regional Fugitive Task Force, join U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s sentencing hearing, on May 17, 2022, the Carolinas Regional Fugitive Task Force (CRFTF) coordinated the arrest of Perry, who had outstanding arrest warrants for a federal supervised release violation and four felony state law violations. CRFTF members located Perry in Charlotte, and with the assistance of the Charlotte-Mecklenburg Police Department (CMPD) Aviation Unit conducted surveillance of Perry’s vehicle. Over the course of the surveillance, court records show that law enforcement observed Perry park his vehicle at an apartment complex in Charlotte. CRFTF members approached Perry and ordered him to step out of the vehicle. Perry was arrested at the scene without incident. At the time of the arrest, Perry was wearing a bulletproof vest.
According to court records, CRFTF members conducted a search of Perry’s vehicle and located a loaded semi-automatic pistol with a round loaded in the chamber and an attached 40-round magazine. Perry has a prior federal conviction for illegal gun possession and state convictions for second-degree murder and assault inflicting seriously bodily injury. As a result of those convictions, Perry is prohibited from possessing firearms or ammunition.
Perry is currently in federal custody. He will be returned to state custody to serve the remainder of his felony assault sentence and then be transferred to the custody of the federal Bureau of Prisons.
In making today’s announcement, U.S. Attorney King thanked the United States Marshals Service and the Carolinas Regional Fugitive Task Force for their investigation of the case and CMPD for their assistance with Perry’s arrest.
Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.
U.S. Attorney's Office Hosts Bank Secrecy Act & Anti-Money Laundering Conference in CharlotteRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that the U.S. Attorney’s Office for the Western District of North Carolina hosted a Bank Secrecy Act & Anti-Money Laundering conference in Charlotte. Representatives from the banking sector and the financial services industry attended the one-day conference, which was held at the Charlotte Police & Fire Training Academy.
The Currency and Foreign Transactions Reporting Act of 1970, commonly known as the Bank Secrecy Act (BSA), established the framework to increase financial transparency and prevent the misuse of the U.S. financial system for the purpose of money laundering. The BSA requires financial institutions to establish certain recordkeeping requirements and anti-money laundering programs, perform customer due diligence, and report suspicious activity. The purpose of the BSA is to safeguard the integrity of the U.S. financial system and to deter and detect those who engage in financial criminal activity, terrorist financing and other illicit financial transactions.
The BSA conference highlighted a broad range of topics related to the role of financial institutions in monitoring, investigating, and reporting illicit financial activity, and provided attendees with important information about emerging areas of fraud in the financial crime landscape, including COVID-19 fraud, cryptocurrency and crypto crime threats, elder financial exploitation, cybercriminal groups, and transnational drug trafficking.
“Money laundering is not a Charlotte problem. It is not a North Carolina problem. It is a global problem that can undermine the stability of our financial markets,” said U.S. Attorney King. “Today’s conference provides an important overview of the latest trends in financial criminal activity and underscores the important role financial institutions play in bolstering our anti-money laundering efforts and disrupting the illicit movement of money through our financial system.”
U.S. Attorney King also noted that information obtained as part of the financial institutions’ BSA requirements can assist investigators and prosecutors in detecting and disrupting money laundering and other financial crimes, developing new investigations, providing leads for existing cases, and locating hidden assets that can be used to pay restitution to crime victims.
“The Bank Secrecy Act is an important tool in our efforts to fight money laundering, bring to justice those who seek to misuse the U.S. financial system to move criminal proceeds, and protect Americans from financial harm,” said U.S. Attorney King. “Rooting out financial criminal activity doesn’t solely rest in the hands of prosecutors and regulators. Financial institutions need to continue to do their part to protect the U.S. financial system from those who misuse it to engage in illicit financial activities.”
Federal Jury Convicts Statesville Man of Child PornographyRead the Press Release
STATESVILLE, N.C. – A federal jury convicted Jessie Leroy Glass, Jr., 49, of Statesville, for possession and receipt of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell presided over the two-day trial which ended late yesterday.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Sheriff Darren Campbell of the Iredell County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to trial evidence, witness testimony and filed court documents, between January and February 2020, Glass received and possessed images and videos of child pornography. As trial evidence established, the Iredell County Sheriff’s Office initiated an investigation into Glass after an individual alerted law enforcement about Glass’s possession of child pornography. Over the course of the investigation, law enforcement recovered two cell phones associated with Glass. A forensic analysis of the cell phone devices revealed that they contained images and videos depicting the sexual abuse of children, including infants and toddlers.
The jury convicted Glass of three counts of receipt of child pornography and one count of possession of child pornography. Glass was released on bond. A sentencing date has not been set.
The charge of possession of child pornography carries a statutory penalty of up to 20 years in prison. Each count of receipt of child pornography carries a minimum sentence of five years in prison and a maximum sentence of 20 years in prison.
In making today’s announcement, U.S. Attorney King commended the FBI, HSI, and the Iredell County Sheriff’s Office for their investigation of the case.
Assistant United States Attorneys Kimlani Ford and Stephanie Spaugh of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Charlotte Woman Faces Federal Charges for Producing and Selling Fake DocumentsRead the Press Release
CHARLOTTE, N.C. – A federal grand jury has returned a criminal indictment charging a Charlotte woman for operating a fraudulent document scheme which she advertised on Facebook, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The indictment charges Chaiya Maley-Jackson, 23, with eight counts of unlawful production of false identification documents, eight counts of unlawful transfer of false identification documents, one count of wire fraud, and one count of making false statements to 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.
According to allegations contained in the indictment, as early as January 2020, Maley-Jackson was the owner and operator of Diva Documents/CPN Services (Diva Documents). The indictment alleges that Diva Documents advertised the sale of false and fraudulent documents on Facebook as well as two websites, divadocuments.com and divadocuments.onuniverse.com. As alleged in the indictment, Maley-Jackson used her personal Facebook page under the name Yaya Flowers to advertise a pricelist for the fake documents she produced, which 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 indictment alleges that the price for the fake documents ranged from $15 to edit a paystub to $150 for a hard copy of a driver’s license, and that Maley-Jackson required customers to pay half of the payment upfront and the balance upon completion of the fabricated documents.
According to allegations in the indictment, Maley-Jackson communicated with clients via emails and text messages and provided the fraudulent documents to customers via email and mail. As alleged in the indictment, 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 other things. According to the indictment, between January 2020 and August 2022, Maley-Jackson created at least 400 Social Security Cards, eight driver’s licenses, and six COVID-19 vaccine cards, and earned more than $320,000 in fees from producing, selling and transferring false documents.
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 charge of unlawful production of false identification documents carries a maximum penalty of fifteen years in prison per count. The charge of unlawful transfer of false identification documents carries a maximum penalty of five years in prison per count. The maximum penalty for the wire fraud charge is 20 years in prison, and the maximum penalty for making a false statement to a financial institution is 30 years in prison.
In making today’s announcement, U.S. Attorney King credited the FBI in Charlotte for the investigation which led to the charges.
Assistant U.S. Attorney Caryn Finley with the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
Four Indicted for $17 Million Bank Fraud SchemeRead the Press Release
ASHEVILLE, N.C. – A criminal indictment has been unsealed in federal court in Asheville, charging four individuals with allegedly executing a multi-million dollar bank fraud scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The indictment charges Kotto Yaphet Paul, 48, of Waxhaw, N.C., Latoya Tamieka Ford, 48, of Covington, Georgia, Bruce Howard Marko, 64, of Charlotte, N.C., and Love Norman, 49, of West Palm Beach, Florida, with one count of wire fraud and bank fraud conspiracy, 16 counts of financial institution fraud, and four counts of money laundering.
According to allegations contained in the indictment, from 2016 to May 2021, the defendants and their co-conspirators executed a fraudulent loan scheme that defrauded at least 17 federally insured financial institutions of more than $17 million. As alleged in the indictment, the defendants and their co-conspirators obtained loans from the financial institutions by submitting loan applications that contained fraudulent information, including false employment and income information, false tax returns, and misrepresentations regarding the applicants’ assets, liabilities, and the intended use the loan proceeds. The indictment further alleges that, based on the fraudulent loan applications, the defendants secured at least 42 loans from the victim financial institutions. Contrary to information provided on the loan applications about the purpose of the loans, the defendants allegedly used the loan proceeds to purchase real estate, cover unrelated business expenses, make investments, and pay for personal expenditures. The indictment also alleges that the defendants defaulted on most of the loans, causing substantial losses to the victim financial institutions that issued the loans.
Each defendant charged in the indictment has appeared in court on the charges. The bank fraud and wire fraud conspiracy charge carries a maximum penalty of 30 years in prison. The charge of financial institution fraud carries a prison term of up to 30 years per count, and the money laundering offense has a statutory maximum penalty of up to 10 years in prison for each offense.
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.
Four additional defendants have been convicted of bank fraud conspiracy for their involvement in the scheme. Amrish D. Patel, 45, of Stockbridge, Georgia, was sentenced to 15 months in prison. Dwight A. Peebles, Jr., 47, of Chapel Hill, N.C., was sentenced to 18 months in prison. Denise Woodard, 56, of Roswell, Georgia, was ordered to serve 36 months in prison, and Derrick L. Harrison, 54, of Greenville, S.C., was sentenced to a year and a day in prison. The defendants were also ordered to pay restitution ranging from $620,000 to more than $3.1 million.
In making today’s announcement, U.S. Attorney King credited the Office of the Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, the Office of the Inspector General for the Federal Housing Finance Agency, the Office of the Inspector General for the Federal Deposit Insurance Corporation, the Federal Bureau of Investigation in Charlotte, and the Charlotte Field Office of the Internal Revenue Service’s Criminal Investigation Division, for the investigation of this case.
Assistant U.S. Attorney Don Gast with the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
If you have information related to this investigation, please contact the FBI at 704-672-6666
Waynesville, N.C. Man Is Sentenced for Possession of Illegal MachinegunsRead the Press Release
ASHEVILLE, N.C. – Jacob Ryan McClure, 25, of Waynesville, N.C. was sentenced to 33 months in prison today followed by three years of supervised released for possession of machineguns, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Sheriff William Wilke of the Haywood County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to documents filed with the court and today’s sentencing proceedings, on July 6, 2022, deputies with the Haywood County Sheriff’s Office stopped McClure’s vehicle for a traffic violation. Over the course of the traffic stop, law enforcement found in McClure’s vehicle 97 illegal conversion devices, commonly known as “Glock switches,” which are used to convert firearms into machineguns. Law enforcement also seized four P80 pistols, which are privately manufactured firearms referred to as “Ghost guns,” that had been converted into machineguns with illegal Glock switches. Law enforcement also recovered a conventional Glock firearm that also had a Glock switch installed, an unregistered short-barreled 9mm rifle, 10 unregistered firearm silencers, and $3,000 in cash.
According to court records, prior to the incident in Haywood County, in August 2021, McClure was arrested in Tennessee after law enforcement seized from McClure’s vehicle and rental cabin several firearms, including converted machineguns, an unregistered silencer, narcotics, and over $10,000 in cash. The U.S. Attorney’s Office in the Middle District of Tennessee brought federal charges against McClure in connection with this offense. Those charges were later transferred to the U.S. District Court in the Western District of North Carolina.
On March 3, 2023, McClure pleaded guilty to two counts of possession of machineguns in connection with both federal cases. McClure remains in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King thanked the ATF, the Haywood County Sheriff’s Office, and the Dover, Tennessee, Police Department for conducting investigations which led to today’s sentence.
The U.S. Attorney’s Office in Asheville handled the prosecution. U.S. Attorney King also thanked the U.S. Attorney’s Office for the Middle District of Tennessee for their coordination and assistance.
U.S. Attorney's Office Observes World Elder Abuse Awareness DayRead the Press Release
CHARLOTTE, N.C. – In observance of World Elder Abuse Awareness Day (WEAAD), U.S. Attorney Dena J. King joined the Justice Department and communities around the world today to condemn elder abuse, neglect, and financial exploitation, and vowed to continue to investigate and prosecute bad actors who seek to exploit and harm older adults.
First recognized on June 15, 2006, by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations, WEAAD aims to promote a better understanding of the abuse and neglect experienced by millions of older adults – crimes that are too often overlooked or unreported. Through this observance, WEAAD brings focus to the cultural, social, economic, and demographic circumstances affecting elder abuse and neglect.
Dena J. King, United States Attorney“Today, we reaffirm our commitment to end elder abuse and to continue to work tirelessly to advocate for older adults and advance the cause of elder justice. On this day and every day, it is important to shine a light on elder abuse, neglect, and exploitation and bring to justice individuals who victimize older adults and rob them of the safety, dignity, and respect they deserve.”
The U.S. Attorney’s Office for the Western District of North Carolina seeks to actively prevent elder abuse and financial exploitation from occurring in the first place. As part of its efforts to prevent elder financial fraud, the Office continues to engage in outreach with the community to educate older adults, their families, and caretakers about scams targeting the elderly, and provide educational material and resources on how to recognize and report elder abuse and financial exploitation and prevent victimization from happening.
Today, the U.S. Attorney’s Office organized a “Walk for Awareness” at Freedom Park in Charlotte, to promote WEAAD and raise public awareness of the fight against elder abuse, neglect, and financial exploitation. U.S. Attorney’s Office personnel, law enforcement partners, AARP volunteers, and members of the community participated in the walk in support of efforts to advance elder justice.
“As prosecutors our job is to bring to justice those who inflict harm on our older population. Equally important is our work in the community and our efforts to actively organize and promote public awareness events centered on the prevention of elder abuse and exploitation, so we can stop older adults from being victimized in the first place,” said U.S. Attorney King.
To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov. To learn more about the Office’s elder justice efforts please visit our website.
Georgia Man Is Sentenced to 30 Years for Traveling to North Carolina to Engage in Sexual Activity with A MinorRead the Press Release
ASHEVILLE, N.C. – Stephen William Wargo, 30, formerly of Dallas, Georgia, was sentenced today to 30 years in prison followed by a lifetime of supervised release for traveling to Western North Carolina in order to engage in illicit sex acts with a minor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also ordered Wargo to register as a sex offender after he is released from prison and to pay restitution in the amount of $13,200.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, 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 proceedings, in September 2021, Wargo began communicating with a 10-year-old minor female via the Discord social media messaging application. Wargo had extensive conversations with the minor victim and at times made inappropriate romantic overtures. Court records show that the minor victim’s parent discovered the communications and turned over the minor’s cell phone to the Henderson County Sheriff’s Office. A detective took over the minor victim’s Discord account and continued to communicate with Wargo. During this period, the messages from Wargo became increasingly sexual and the two discussed Wargo traveling from Georgia to North Carolina to meet the minor victim. On October 16, 2021, Wargo did in fact travel from Georgia to Henderson County, with the intent to engage in a sexual act with a child. He was arrested upon arriving at the predetermined meeting location.
On February 27, 2023, Wargo pleaded guilty to crossing state lines with intent to engage in a sexual act with a person less than 12 years of age.
"Every child has the right to a childhood free from sexual abuse and trauma. Identifying and prosecuting predators like Wargo is at the forefront of our efforts to combat child sexual exploitation and keep our most precious resource, our children, safe from those who wish to cause them harm,” said U.S. Attorney King.
“Protecting the children in our communities remains a top priority for Homeland Security Investigations,” said Special Agent in Charge Martinez. “This sentence is a testament that HSI remains committed to identifying individuals who prey on our most vulnerable population.”
“There is nothing more precious than our children. I am proud of the extraordinary efforts put forth by the men and women of the Sheriff’s office, Homeland Security Investigations, and the U.S. Attorney’s Office to remove this dangerous criminal from society. We will continue to work collaboratively to hold those accountable that choose to prey on the most vulnerable,” said Sheriff Griffin.
U.S. Attorney King credited HSI and the Henderson County Sheriff’s Office with the investigation leading to today’s sentence.
Assistant U.S. Attorney Alexis Solheim with the U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Bookkeeper Is Sentenced to Prison for Embezzling More Than $1.35 Million from EmployerRead the Press Release
ASHEVILLE, N.C. – A bookkeeper was sentenced to prison today for embezzling more than $1.35 from his employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger ordered Danny Dale Tremble, 49, of Conover, N.C., to serve 41 months in prison followed by three of supervised release, and to pay restitution in the amount of $1,639,659.99.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), join U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, from October 2013 to December 2021, Tremble executed a scheme to embezzle and defraud his Asheville-based employer, Azalea Management and Leasing, Inc. (Azalea). Tremble worked at Azalea as an accountant, and in that capacity had access to the company’s bank accounts and accounting records. Over the course of the scheme, Tremble routinely misused his access to Azalea’s bank accounts to embezzle company funds, which he used to pay off personal credit cards and to cover personal expenditures including lavish hotel stays, dining, and shopping. Tremble also used stolen company funds to purchase a camper, a boat, a trailer, a pickup truck, and to buy multiple firearms.
Court documents show that Tremble failed to report any of the embezzled income on his Joint Individual Income Tax Returns, Forms 1040, amounting to a federal tax loss of $288,716.
On February 13, 2023, Tremble pleaded guilty to wire fraud and filing a false tax return. He is currently released on bond and will be ordered to surrender to the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King thanked the FBI and IRS-CI for their investigation of the case. The U.S. Attorney’s Office in Asheville handled the prosecution.
Greensboro, N.C. Clinic Owner Pleads Guilty to $4.7 Million Health Care Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Aljihad Shabazz, 44, of Kernersville, N.C., appeared before U.S. Magistrate Judge Susan C. Rodriquez today and pleaded guilty to health care fraud conspiracy and money laundering conspiracy for his role in a scheme that defrauded the North Carolina Medicaid Program (Medicaid) of more than $4.7 million, 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, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), and North Carolina Attorney General Josh Stein, who oversees the North Carolina Medicaid Division (MID), join U.S. Attorney King in making today’s announcement.
According to court records, filed plea documents, and today’s hearing, Shabazz was the owner and operator of Reign & Inspirations, LLC (R&I), a clinic that provided outpatient behavioral services in Greensboro and surrounding areas. Between 2017 and 2020, Shabazz conspired with other individuals to carry out an extensive health care fraud scheme involving the fraudulent submissions of fake reimbursement claims to Medicaid, for services that were never provided to Medicaid beneficiaries. As Shabazz admitted in court today, he obtained the personal identifying information (PII) of Medicaid beneficiaries through community outreach programs, including football and mentoring programs, and misused the beneficiaries’ PII to create and submit hundreds of fraudulent reimbursement claims and to receive payment for services that were never in fact provided by R&I. Over the course of the scheme, Shabazz used the beneficiaries’ PII to submit more than 1,500 fraudulent reimbursement claims to Medicaid, some of which claimed that R&I provided services that exceeded 24 hours in a single day.
Court records show that the reimbursement payments made by Medicaid were deposited in bank accounts under Shabazz’s control. Shabazz used a portion of the fraudulent proceeds to pay kickbacks to his co-conspirators and to cover personal expenses, including to pay for personal travel, luxury items, and timeshares, and to make cash withdrawals.
Shabazz was released on bond following his plea hearing. The health care fraud conspiracy charge carries a statutory maximum penalty of 10 years in prison, and the money laundering conspiracy charge up to 20 years in prison. A sentencing date for Shabazz has not been set.
In making today's announcement, U.S. Attorney King credited the FBI in Charlotte, IRS-CI, and NCDOJ’s Medicaid Investigations Division for the investigation that led to today’s guilty plea
Assistant U.S. Attorneys Cassye Cole and Mike Savage and Special Assistant U.S. Attorney Jermaine Sellers with the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Federal Jury Finds Physician Assistant Guilty of $10 Million Medicare FraudRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte returned a guilty verdict today against a physician assistant, for his role in a genetic testing scheme that resulted in the submission of more than $10 million in fraudulent claims to the Medicare program, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Colby Edward Joyner, 35, of Monroe, N.C., was convicted of one count of health care fraud and six counts of making false statements relating to health care matters.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tamala E. Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), join U.S. Attorney King in making today’s announcement
“Joyner exploited telemedicine technology to siphon off money from Medicare, a federally-funded program that so many people rely on for their health care needs,” said U.S. Attorney King. “As the telehealth field continues to grow, federal prosecutors and investigators are keeping a watchful eye for scammers who seek to exploit this platform for their own benefit.”
“Joyner took a medical oath to base his care on a patient’s needs rather than his financial interests, but he violated that oath and now must face the consequences,” said Special Agent in Charge DeWitt.
“When health care professionals cause the submission of false claims to federal health care programs, they undermine the public’s trust in the health care profession and take valuable, taxpayer-funded resources away from their intended recipients,” said Special Agent in Charge Miles.
According to trial evidence, witness testimony and documents filed with the court, in 2018 and 2019, Joyner was a physician assistant in the Charlotte area who worked as an independent contractor for a physician staffing and telemedicine company. As trial evidence established, during the relevant time frame, Joyner signed fraudulent prescriptions for medically unnecessary genetic testing, specifically cancer genomic and pharmacogenetic testing, for hundreds of Medicare beneficiaries residing in North Carolina. Joyner had never met, seen or treated the beneficiaries, and only had brief telephone conversations with them or no interactions at all.
Trial evidence showed that Joyner received from the telemedicine company and its clients pre-populated prescription forms and related records for patients who were pre-selected for genetic testing, which he then electronically signed and returned, in exchange for $12—and later $15—for each purported consultation that he performed.
According to evidence presented at trial, to conceal that Joyner was not the beneficiaries’ treating physician and that he did not conduct medical evaluations or examinations of the beneficiaries, Joyner falsified medical records in connection with the unnecessary prescriptions and falsely certified that the genetic tests were medically necessary. The government’s evidence established that Joyner’s scheme resulted in the submission of more than $10 million in fraudulent reimbursement claims to Medicare, and more than $3.6 million in payments.
Joyner was released on bond. A sentencing date has not been set. The health care fraud charge carries a maximum prison term of 10 years and a $250,000 fine. The charge of making false statements relating to health care matters carries a maximum penalty of five years in prison and a $250,000 fine, per count.
The FBI in Charlotte and HHS-OIG investigated the case.
Assistant U.S. Attorneys Katherine Armstrong and Matthew Warren, and Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Hickory Business Owner and Co-Conspirator Are Sentenced for Trafficking MethamphetamineRead the Press Release
CHARLOTTE, N.C. – Yesterday, U.S. District Judge Kenneth D. Bell sentenced Shawn Lamont Hickman, 32, of Newton, N.C., and Amos Lamont Bruen, 47, of Valdese, N.C., to 156 months and 97 months in prison respectively for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison terms imposed, Hickman and Bruen were each ordered to serve four years of supervised release after they are released from prison.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Reed Baer of the Hickory Police Department join U.S. Attorney King in making today’s announcement.
According to filed documents and information presented in court, beginning in December 2021, law enforcement became aware that Bruen was dealing narcotics out of a business he owned in Hickory, N.C., Amos Essential Oils. An undercover officer visited Bruen’s business and arranged to purchase narcotics from Bruen. Between December 2021 and February 2022, the undercover officer met several times with Bruen at his store and conducted several controlled purchases of methamphetamine totaling more than 1.5 kilograms. Court records show that Hickman was present on several occasions while the undercover officer was conducting the controlled purchases, often armed with a firearm.
According to court records, on February 26, 2022, law enforcement observed Hickman engage in narcotics transactions in the parking lot of a pool hall, Corner Pocket. Hickman was arrested and officers recovered a firearm and methamphetamine from Hickman’s vehicle. On March 1, 2022, law enforcement executed a search warrant at Bruen’s residence. During the search of Bruen’s home and vehicle, officers seized marijuana, cocaine, methamphetamine, and a firearm. An additional firearm and ammunition were also seized from Bruen’s business.
On November 22, 2022, Bruen pleaded guilty to distribution of methamphetamine. Hickman pleaded guilty on February 14, 2023, to possession with intent to distribute methamphetamine. The defendants 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 thanked the ATF and the Hickory Police Department for their investigation of this case.
Assistant United States Attorney Brandon Boykin of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Watauga Man Is Sentenced to Seven Years for Transporting Child PornographyRead the Press Release
CHARLOTTE, N.C. – Luis Eduardo Nunez, 27, of Sugar Grove, N.C., was sentenced today to 84 months in prison for transporting 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 Nunez to serve 30 years of supervised release and to register as a sex offender after he is released from prison.
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 (NC SBI), and Chief Andy LeBeau of the Boone Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s sentencing hearing, beginning in May 2021, an undercover agent with HSI observed that Kik Messenger user “thatguy246011,” later identified as Nunez, was participating in private group chats dedicated to the distribution of child pornography. On multiple occasions, Nunez also used Kik Messenger to post images and videos depicting the sexual abuse of children. Court documents show that the undercover agent made contact with Nunez via Kik Messenger. Over the course of the exchanges, Nunez expressed his interest in viewing and trading child pornography and sent the undercover agent child pornography. In July 2021, HSI also received a tip from the National Center for Missing and Exploited Children concerning the same Kik messenger username, indicating that the user had uploaded 30 files through the app, most of which depicted child pornography.
On August 31, 2021, law enforcement executed a search warrant at Nunez’s residence. Over the course of the search, law enforcement seized Nunez’s cell phone. A forensic analysis of the phone’s contents identified at least 154 images and 18 videos of child pornography on the device. Court records indicate that investigators also spoke with Nunez at his residence. In a voluntary interview, Nunez admitted that he used Kik Messenger to transport child pornography. Nunez also admitted that he set up a new account on the app and used it to transport child pornography after his old one was shut down.
On October 7, 2022, Nunez pleaded guilty to transporting child pornography. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
The case was investigated by HSI, NC SBI, and the Boone Police Department.
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.
Two Businessmen Plead Guilty to Wire Fraud Conspiracy for Orchestrating Large-Scale Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Marlin Hershey, 53, and Dana Bradley, 53, both of Cornelius, North Carolina, appeared before U.S. Magistrate Judge David C. Keesler and pleaded guilty to wire fraud conspiracy for orchestrating a large-scale investment scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
North Carolina Secretary of State Elaine F. Marshall and Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, join U.S. Attorney King in making today’s announcement.
According to filed court documents and the plea hearings, from approximately 2009 to 2021, Hershey and Bradley conspired to defraud numerous victims who invested in two unregistered securities offerings promoted by the defendants, Performance Retire on Rentals, LLC (Performance Retire), and Distressed Lending Fund (DLF). As the defendants admitted in court today, both projects eventually failed causing significant losses to investors.
As reflected in court documents, to induce investors to invest their money, Hershey and Bradley provided victims with investment materials for the two securities offerings that contained false and misleading statements and did not disclose material information. For example, Hershey and Bradley failed to disclose that they received commission-like payments based on the amount of investments they sold. In fact, the defendants often provided investors with offering materials that represented the opposite – that nobody would be paid a commission in connection with the investments. Contrary to their statements, the defendants received payments that were typically 10% of an investor’s initial investment and often received an additional payment when an investor extended an investment. In this manner, Hershey and Bradley received hundreds of thousands of dollars in undisclosed payments from the sale of securities. Filed documents also show that, in addition to these payments, the defendants received regular undisclosed “management” fees from Performance Retire and DLF.
According to court records, Hershey and Bradley also failed to disclose to investors other material information, including negative information about the defendants’ backgrounds and the financial woes faced by some of the entities for which they were soliciting investments. To the contrary, because the defendants often solicited the same group of investors to invest in the various projects, the defendants took steps to conceal such financial difficulties by making undisclosed loans to various entities so that the entities could, in turn, make their required interest payments to investors. Hershey and Bradley also solicited new investors and used the new investors’ money to repay the loans and to make Ponzi-style payments to previous investors. In addition, the defendants sent to investors periodic performance reports that failed to disclose material information about the status and health of their investments.
In 2019, investors learned for the first time that the projects in which they had invested were in financial distress and could no longer meet their significant obligations to investors.
After entering their guilty pleas the defendants were released on bond. The wire fraud conspiracy charge carries a maximum sentence of 20 years in prison and a $250,000 fine. A sentencing date has not been set.
In making today’s announcement U.S. Attorney King thanked the Securities Division of the North Carolina Secretary of State and the FBI for leading the joint investigation.
Assistant U.S. Attorneys Daniel Ryan and Taylor Stout, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
Asheville Man Is Sentenced to Prison for Federal Firearms OffenseRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Danquon Shermaine Brown, 32, of Asheville, to 33 months in prison followed by three years of supervised release for a firearms offense, announced Dena J. King, U.S. Attorney for the Western District of North Carolina
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Carla Neadeau of the Cherokee Indian Police Department join U.S. Attorney King in making the announcement.
According to court documents filed in the case and the sentencing hearing, in 2014, Brown was convicted in federal court in the Western District of North Carolina of possession with intent to distribute cocaine base and was sentenced to 60 months in prison. Brown’s federal conviction prohibits him from possessing a firearm or ammunition.
Court records show that in February 2022, officers with the Cherokee Indian Police Department (CIPD) received information that Brown, who at the time was staying at Harrah’s Cherokee Hotel and Casino in Cherokee, had outstanding arrest warrants in Buncombe County. On February 16, 2022, Brown checked out of the hotel. On the same day, CIPD officers arrested Brown after they stopped his vehicle near Highway 19 in Cherokee. Over the course of the arrest, CIPD officers recovered from Brown a handgun which was loaded with 12 rounds of ammunition.
On March 1, 2023, Brown pleaded guilty to one count of felon in possession of a firearm and ammunition. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons.
In making today’s announcement, U.S. Attorney King thanked the Cherokee Indian Police Department and the ATF for their assistance with the investigation.
Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
Red Ventures, LLC and MYMOVE, LLC Agree to Pay $2.75 Million to Resolve False Claims Act Allegations Arising from Agreements with the U.S. Postal ServiceRead the Press Release
CHARLOTTE, N.C. – Red Ventures, LLC and MYMOVE, LLC (together, “MYMOVE”) have agreed to pay the United States $2.75 million to resolve allegations that they violated the False Claims Act by knowingly withholding funds owed to the U.S. Postal Service (“USPS”) under contractual agreements connected to the USPS change of address process.
The United States alleged that MYMOVE had a contractual obligation to share monthly gross revenue related to a certain program with USPS, but instead, MYMOVE improperly and secretly deducted some of its own costs before sharing revenue with USPS – essentially changing the contractual revenue share provision at issue from one of gross revenue to one of net revenue, a change favorable to MYMOVE’s profits at the expense of revenue owed to USPS.
The settlement also resolves allegations that MYMOVE improperly and knowingly allocated labor costs related to this same contract, under which MYMOVE bore all of the program costs, to another contract, that contained a profit-sharing agreement with USPS, thereby also increasing MYMOVE’s profits at USPS’s expense by improperly passing off a portion of its labor costs to USPS.
“This settlement demonstrates that those who cheat the government will be held accountable,” said Dena J. King, U.S. Attorney for the Western District of North Carolina. “My office will continue to investigate and hold responsible those who seek to profit from defrauding federal agencies.”
“We are gratified to have contributed to this investigation and applaud the exceptional work by the United States Attorney’s Office for protecting both U.S. Postal Service revenue and the integrity of our change of address program,” said Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service (USPS), Office of Inspector General (OIG). “Special Agents of the USPS OIG will continue to investigate those who would engage in fraudulent activities designed to defraud the Postal Service. The settlement delivered in this case represents a win for the USPS and for all law enforcement agencies who work together to ensure that justice is served.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by former MYMOVE employee Marcos Arellano. Under those provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Arellano v. MYMOVE, LLC and Red Ventures, LLC, No. 3:20-cv-255 (W.D.N.C.).
Assistant U.S. Attorney Seth Johnson and Investigator Cathleen Hollowell of the U.S. Attorney’s Office in Charlotte investigated the matter in conjunction with the USPS Office of Inspector General.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Matthews, N.C. Man Is Sentenced to Three Years in Prison for Tax EvasionRead the Press Release
CHARLOTTE, N.C. – Darren Lee Joy, 63, of Matthews, N.C. was sentenced yesterday in federal court before U.S. District Judge Frank D. Whitney for tax evasion, announced Dena J. King, U.S. Attorney for the Western District of North Carolina, and Stuart M. Goldberg, Acting Deputy Assistant Attorney General for the Justice Department’s Tax Division.
Joy received a sentence of 36 months in prison followed by two years of supervised release.
Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) joins U.S. Attorney King and Acting Deputy Assistant Attorney General Goldberg in making the announcement.
According to court documents filed in the case and the sentencing hearing, from 1987 through 1990, 1993, 1996 through 2008, and 2010 through 2021, Joy did not file individual income tax returns despite earning more income than the minimum filing requirement. In order to evade his taxes, Joy submitted and maintained with his employers Forms W-4 and state tax forms, falsely claiming that he was exempt from federal and state income tax withholding when he was not entitled to claim exempt status. As a result, court documents show that taxes were not withheld from his wages and little to no taxes were paid over to the IRS or his state of residence. In total, Joy earned more than $1.8 million in income and owed the IRS and California more than $380,000 in taxes.
On July 19, 2022, Joy pleaded guilty to one count of tax evasion for his 2015 tax return.
Joy’s original sentencing date was April 26, 2023, however, he failed to appear, and a bench warrant was issued for his arrest. During the sentencing, Judge Whitney found that Joy obstructed justice by failing to appear for his original sentencing date and by filing numerous frivolous documents with the Court and the IRS. In pronouncing the sentence, Judge Whitney said that this sentence should show others that there are consequences for not paying your taxes. In addition to the term of imprisonment, the Court ordered Joy to pay $359,859 in restitution to the IRS and $23,058 in restitution to the State of California.
U.S. Attorney King and Acting Deputy Assistant Attorney General Goldberg thanked IRS-CI for their investigation of the case.
Assistant U.S. Attorney Caryn Finley of the Western District of North Carolina and Trial Attorney Brian Flanagan of the Justice Department’s Tax Division prosecuted the case.
U.S. Attorney's Office Partners with Charlotte-Mecklenburg Schools to Host Summit for High School Students as Part of “United Against Hate” InitiativeRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that her Office partnered with Charlotte-Mecklenburg Schools (CMS) to host a youth engagement summit for high school students, as part of the U.S. Attorney’s Office “United Against Hate” (UAH) initiative.
Approximately 150 students selected from Charlotte-Mecklenburg high schools attended the summit, which was held at Queens University Sports Complex and Conference Center. The goal of the summit was to provide instruction and information to students on identifying, reporting, and preventing hate crimes and other civil rights violations; encourage students to share their experiences and exchange ideas on how to promote a positive environment within their schools; and help students develop solutions for building inclusive and equitable schools for everyone.
Dena J. King, United States Attorney“Today, we empowered our students to think as future leaders in our communities. We challenged them to understand their role as agents for change. And we dared them to dream of building a society where hate has no place. I call upon all students to find their voice and speak out against hate wherever they see it – even when it’s not directed at them. I also urge students to reject hate and to join me in making inclusion and equality our common goal and our shared responsibility.”
Over the course of the program, students were presented information by Alex Pyun, with Mecklenburg County Community Support Services; Haeley Robinson with Time Out Youth; John Coucelman with CMS; and Daniel Cervantes with the U.S. Attorney’s Office.
During the program’s interactive group sessions, students discussed their concerns about their schools’ current culture and brainstormed on ways to help support each other and their classmates in creating a better school experience. Students were also challenged to think about how they can best utilize the information they acquired to develop action plans to address the needs of their schools.
Today’s summit was part of a series of planned outreach and educational events conducted by the U.S. Attorney’s Office as part of the Justice Department’s UAH initiative, a nationwide program created to combat the rise in unlawful acts of hate.
On May 27, 2021, U.S. Attorney General Merrick B. Garland issued a memorandum on improving the Justice Department’s efforts to combat unlawful acts of hate, and emphasized the need to actively engage in outreach and educational efforts centered around hate crimes.
In the Western District of North Carolina, the UAH initiative comprises a series of events focusing on community groups at risk of being targeted in hate crimes and incidents of hate. The goal is to give participants an opportunity to directly connect with federal prosecutors and law enforcement to increase community understanding of hate crimes and hate incidents; provide a mechanism for reporting potential hate crimes and civil rights violations; build trust between law enforcement and communities; and create and strengthen alliances with government partners and community groups to combat unlawful acts of hate.
In making today’s announcement, U.S. Attorney King thanked Queens University for hosting the summit and giving the students an opportunity to gather, and Pivotal Health Solutions for providing mental health resources for the students. U.S. Attorney King also thanked Charlotte-Mecklenburg Schools, Time Out Youth, and Mecklenburg County Community Support Services for their participation and support of this important initiative.
In the coming months, the U.S. Attorney’s Office will hold additional UAH events to engage with more communities throughout the Western District of North Carolina.
Federal Jury Finds Charlotte Business Owner Guilty of Selling Stolen iPhones OverseasRead the Press Release
CHARLOTTE, N.C. – A federal jury has found a Charlotte business owner guilty of conspiracy, international transportation of stolen goods, and money laundering, for selling stolen and fraudulently obtained Apple iPhones (iPhones) and other electronic devices to overseas buyers, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. presided over the trial which ended late yesterday.
Jason Byrne, Special Agent in Charge of the United States Secret Service (USSS), 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 court documents, trial evidence, and witness testimony, Rami Mahmod Mhana, 46, was the owner of Wireless City Fashions, Inc. (Wireless City) and Protocol Business Group Inc. (Protocol), located at 441 Bradford Drive in Charlotte, as well as multiple Boost mobile stores in the Charlotte area. From at least May 2017 through October 2019, Mhana purchased thousands of brand new, current generation iPhones and other electronic devices, many of which were stolen and fraudulently obtained. Mhana then shipped the new iPhones to the United Arab Emirates (the U.A.E.) and the Hong Kong Special Administrative Region of the People’s Republic of China (Hong Kong).
Trial evidence established that Mhana obtained a significant portion of the stolen and fraudulently obtained devices from multiple local “boosters.” A booster is a person who steals or obtains through fraud goods and products and sells them for profit. According to evidence presented at trial, Mhana’s store on Bradford Drive was known to local boosters as a place they could sell stolen devices for cash with no questions asked. Evidence at trial further established that Mhana provided his employees with a pricelist of how much they should pay for certain new model iPhones and other electronic devices. Mhana would pay boosters significantly less than retail value of the devices. Over the course of the scheme, Mhana received more than $4.5 million in international wires from buyers of the devices in Dubai and Hong Kong.
Following the guilty verdict, Mhana was released on electronic monitoring. At sentencing, he faces a maximum statutory penalty of five years in prison and a fine of $250,000 for the conspiracy charge; up to 10 years in prison and a $250,000 fine for each count of international transportation of stolen goods; and a maximum of 20 years in prison and a fine for each money laundering conviction.
This case was the result of the investigative efforts of CMPD and the Secret Service, which have established a fully integrated partnership to combat the most significant 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 Michael E. Savage and William Bozin of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
U.S. Attorney's Office Announces Allocation of New Positions to Advance Public Safety and Promote Community EngagementRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that new positions for Assistant U.S. Attorneys and support personnel have been allocated to the U.S. Attorney’s Office for the Western District of North Carolina, to advance the Office’s work in promoting public safety, Department of Justice initiatives, and community engagement.
Districts were asked to submit requests for additional prosecutors and support personnel in areas they deemed needed additional resources. The funding for the new positions was provided by the FY2023 Consolidated Appropriations Act. The U.S. Attorney’s Office requested and received seven new positions to be allocated as follows:
- An Assistant U.S. Attorney dedicated to Civil-Civil Rights enforcement.
- An Assistant U.S. Attorney to support Indian Country cases.
- An Assistant U.S. Attorney and a support staff to focus on investigating and prosecuting Violent Crime/Domestic Terrorism cases.
- An Assistant U.S. Attorney and a Litigation Support Technologist dedicated to supporting the Justice Department’s work on E-litigation.
- An Investigative Specialist to support the investigation and prosecution of white collar crimes.
In making today’s announcement U.S. Attorney King said, “I am thankful my Office was allocated the additional resources. The much-needed prosecutor and support personnel positions will be used to address public safety challenges, implement solutions, and advance our engagement efforts in communities across the Western District and in Indian Country.”
Those interested in applying for one of the positions in the near future can do so through https://www.justice.gov/usao-wdnc/careers or through www.usajobs.gov.
Coal Broker Charged with Filing False Returns and Obstructing the IRSRead the Press Release
A federal grand jury in Charlotte, North Carolina, returned an indictment today charging a man with filing false individual tax returns and attempting to obstruct an IRS audit and criminal investigation.
According to the indictment, Vondie Brunty owned and operated West Star Management Inc. (WSM), a company that, from 2005 to April 2015, co-owned a coal brokerage business through which WSM received income on behalf of Brunty. Brunty allegedly caused WSM to surrender its ownership of the coal brokerage in approximately April 2015, but he allegedly continued to earn income through WSM by, among other things, hauling coal for the coal brokerage and selling timber rights to a lumber business.
The indictment alleges that, despite earning income, Brunty did not file personal tax returns for 2011 through 2013. During an IRS audit of the unfiled returns, Brunty allegedly made multiple false and misleading statements and did so again during an interview with IRS criminal investigators. The indictment further charges that, after learning of the criminal investigation, Brunty late-filed a 2014 tax return in January 2021 and a 2015 tax return in August 2021, both of which allegedly underreported his income.
Brunty faces a maximum penalty of three years in prison for obstructing the IRS and for each false return count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dena J. King for the Western District of North Carolina made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Ashley Stein and Alexander Effendi of the Justice Department’s Tax Division and Assistant U.S. Attorney Caryn Finley of the Western District of North Carolina are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney's Office Observers National Police WeekRead the Press Release
CHARLOTTE, N.C. – In observance of National Police Week, the U.S. Attorney’s Office for the Western District of North Carolina recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement and pays tribute to the officers who have fallen in the line of duty.
In 1962, President John F. Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
“During National Police Week, we honor and remember the law enforcement officers who sacrificed their lives in the line of duty,” said U.S. Attorney Dena J. King. “We remember their bravery, their service, and their willingness to put themselves at harm’s way to protect the lives of others. We also pledge our support to our federal, state, local and Tribal law enforcement officers for their dedication and for serving our communities with honor, dignity, and excellence.”
This year, the names of 556 law enforcement officers killed in the line of duty were added to the National Law Enforcement Officers Memorial (NLEOMF) in Washington D.C., to include Master Trooper John Sumter Horton with the North Carolina Highway Patrol of Western North Carolina, who died on January 3, 2022. An additional 332 officers added to the Memorial died earlier in history but their names and stories of sacrifice had not been previously documented. There are currently 23,785 names engraved on the Memorial, representing law enforcement officers from all 50 states, the District of Columbia, territories, federal law enforcement, and military police agencies.
The names of the fallen officers added to the Memorial this year will be read on Saturday, May 13, 2023, at the 35th Annual Candlelight Vigil in Washington, D.C., starting at 8:00 p.m. EST. The Candlelight Vigil will be livestreamed on the NLEOMF YouTube channel at https://www.youtube.com/TheNLEOMF. The schedule of National Police Week events is available on NLEOMF’s website.
U.S. Attorney Dena J. King Announces the Winners of the 7th Annual “Do the Write Thing” Writing Challenge in AshevilleRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Dena J. King announced the winners of the 7th Annual “Do the Write
Thing” (DtWT) writing challenge, during an award ceremony held this evening in Asheville. U.S. Attorney King serves as Chair of the DtWT Committee in Asheville.
The Do the Write Thing challenge is a program of the National Campaign to Stop Violence, which seeks to encourage middle school students to express the impact of violence in their lives through writing, and to empower students to become catalysts for positive change by sharing their ideas on ways to reduce youth violence.
“The written word is a powerful medium for expression,” said U.S. Attorney King. “The Do the Write Thing essay challenge gives students an opportunity to use their writing skills to share their experiences, explore their thoughts and emotions, and convey the impact of violence in their young lives. It also encourages students to find solutions and ways they can help reduce violence in their communities. I congratulate the winners of the challenge, the finalists, and all the students who participated in the competition this year, and I extend a sincere thank you to the parents, guardians, teachers, and school administrators for supporting and encouraging students to express themselves through their essays.”
A total of 362 essays written by middle school students attending Asheville Middle School and Buncombe County Schools were submitted for consideration. Of the finalists recognized at this evening’s ceremony, Ace Wilkins, an 8th grader with Asheville Middle School, and Hannah-Grace Tweedie, an 8th grader with Cane Creek Middle School, were announced as this year’s overall contest winners and were designated as National DtWT Ambassadors. As National Ambassadors, Ace and Hannah-Grace, their parents/guardians and the teachers who submitted their essays will be invited to participate in the “Do the Write Thing Challenge National Recognition Week” in Washington, D.C. During this all-expense-paid trip, Ace and Hannah-Grace will have an opportunity to visit national monuments and have their works placed in the Library of Congress.
During this evening’s ceremony, U.S. Attorney King recognized the Asheville Police Department, the Buncombe County Sheriff’s Office, the City of Asheville Fire Department, the Asheville Housing Authority, Our VOICE, SPARC Foundation, and United Way of Asheville and Buncombe County for partnering with the U.S. Attorney’s Office to form the DtWT committee. U.S. Attorney King also recognized the teachers, school administrators, counselors, parents, guardians, and caregivers for their dedication to this important endeavor, and thanked them for supporting the students’ efforts.
“My Office and the Justice Department are committed to implementing strategies to prevent and reduce crime in our communities. Engaging our schools and the community as critical partners is an important component to our overall success,” said U.S. Attorney King. “I am looking forward to our continued partnership with Buncombe County Schools and Asheville City Schools and I value their commitment to fostering a positive environment that helps students realize their full potential.”
U.S. Attorney King also participated in Monday’s Do the Write Thing ceremony in Charlotte, during which Aaliyah Williams-Camp from Eastway Middle School and Michael Tadi from Coulwood STEM Academy were announced as the winners of the essay competition in Charlotte.
For more information on the National “Do the Write Thing Challenge” program please visit http://www.dtwt.org.
U.S. Attorney's Office Commemorates Missing or Murdered Indigenous Persons Awareness DayRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office joined the Department of Justice, partners across the
federal government, and people throughout American Indian and Alaska Native communities, in recognizing May 5, 2023 as National Missing or Murdered Indigenous Persons Awareness Day (MMIP).
“Today, we honor and remember Native Americans who have fallen victims to violence or remain missing and pledge our commitment to their loved ones to solve missing or murdered Indigenous persons cases,” said U.S. Attorney Dena J. King. “We will also continue to work with our Tribal partners to increase public safety in Tribal communities and address the underlying causes of violence that disproportionately harm Native American women and children.”
The Department of Justice’s work to respond to the MMIP crisis is a whole-of-department effort that takes many forms. One year ago today, Deputy Attorney General Lisa Monaco joined Secretary of the Interior Deb Haaland to launch the Not Invisible Act Commission, a joint Commission established by the Not Invisible Act with an essential mission — to reduce violence against American Indians and Alaska Natives. In February, they welcomed the first in-person plenary meeting of the Not Invisible Act Commission. Since then, the department’s representatives on the Commission—who are department leaders and subject matter experts—have participated in the Commission’s field hearings, which will continue through the summer. Later this year, the Commission will deliver recommendations for addressing the MMIP crisis to the Attorney General and the Secretary. In addition to supporting the Not Invisible Act Commission, the department remains steadfast in its commitment to addressing the MMIP crisis.
“The Justice Department is marshalling the full strength of its resources to confront the crisis of Missing or Murdered Indigenous Persons, which has devastated the lives of victims, their families, and entire Tribal communities,” said Attorney General Merrick B. Garland. “Addressing this crisis requires a whole-of-government approach, and we are grateful for the partnership of Tribal and other law enforcement agencies across the nation that are working alongside the Justice Department to help reduce crime and support victims in American Indian and Alaska Native communities.”
“Missing or Murdered Indigenous Persons Awareness Day calls on our nation to pause and honor the loved ones who have gone missing or who have been the victims of violent crime,” said Deputy Attorney General Lisa O. Monaco. “Acknowledging the many American Indian and Alaska Native people who have suffered, and continue to suffer, from the pain of a missing loved one or of violent crime serves as an important reminder of the urgency and importance of the department’s work to respond to the crisis of missing or murdered indigenous persons. The Justice Department—including our dedicated agents, analysts, and prosecutors—remains steadfast in our pledge to work as partners with Tribal governments in preventing and responding to the violence that has disproportionately harmed Tribal communities.”
“The Justice Department is committed to using every resource at its disposal to combat the Missing or Murdered Indigenous Persons Crisis,” said Associate Attorney General Vanita Gupta. “In addition to our core law-enforcement work, we are providing grant funding and guidance to help Tribes develop response plans for missing-persons cases, partner effectively with local law enforcement, and provide resources for victims of crime.”
For additional information about the Department of Justice’s efforts to address the MMIP crisis, please visit the Missing or Murdered Indigenous Persons section of the Tribal Safety and Justice website. Click here for more information about reporting or identifying missing persons.
Federal Jury Convicts Child Psychiatrist of Sexual Exploitation of A MinorRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte has convicted David Tatum, 41, a child psychiatrist in Charlotte, N.C., of sexual exploitation of a minor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of Federal Bureau of Investigation (FBI) in North Carolina join U.S. Attorney King in making today’s announcement.
According to filed court documents, trial evidence and witness testimony, between 2016 and 2021, Tatum possessed images and videos of child pornography. Trial evidence also established that in or about July 2016, Dr. Tatum secretly recorded a minor while the minor was undressing and showering. A forensic analysis of electronic devices revealed that the defendant produced the video of the minor and possessed it, along with other images and videos of child pornography. According to trial evidence, Dr. Tatum made similar surreptitious recordings of others, including of his patient during an outpatient visit who had just turned 18 years old five days before the recording. The jury convicted Dr. Tatum of one count production of child pornography, one count of transportation of child pornography, and one count of possession of child pornography.
Dr. Tatum is currently in federal custody. A sentencing date has not been set. The count of production of child pornography carries a minimum statutory sentence of 15 years and a maximum of 30 years in prison and a $250,000 fine. The charge of transportation of child pornography carries a minimum statutory sentence of 5 years and a maximum of 20 years in prison and a $250,000 fine. The charge of possession of child pornography carries a statutory penalty of no more than 10 years in prison and a $250,000 fine.
In making today’s announcement, U.S. Attorney King commended FBI for their investigation of the case.
Assistant United States Attorneys Daniel Cervantes and Mark Odulio of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Department of Justice Recognizes Two U.S. Attorney's Office EmployeesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that two U.S. Attorney’s Office employees were among the 159 members of the Justice Department recognized by Attorney General Merrick B. Garland, Deputy Attorney General Lisa Monaco, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 38th Director’s Awards Ceremony yesterday in Washington, D.C.
The Western District of North Carolina was one of 31 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
Fred Hudson was recognized for his exemplary work as the Western District’s Law Enforcement Coordinator (LEC). As an LEC, Mr. Hudson has spent years cultivating relationships with federal, state, and local law enforcement, coordinating law enforcement officer training, and assisting partner agencies with federal grant opportunities. For over 18 years, Mr. Hudson has also spearheaded the Office’s community outreach efforts by fostering relationships with community organizations, schools, service providers, and other important stakeholders, and organizing events and engagement opportunities that advance Department of Justice priorities.
Lia Bantavani was recognized for her work as the Office’s Public Information Officer. In that capacity, Ms. Bantavani handles the Office’s communications with the media and the public, drafts and disseminates press releases, responds to media inquiries and coordinates media interviews. In addition, Ms. Bantavani maintains the Offices’ website and social media accounts, and assists with amplifying the Office’s outreach efforts and Department of Justice initiatives through targeted campaigns that promote public safety.
“I am honored and delighted that Fred and Lia were recognized for their achievements and contributions to furthering the mission of the Justice Department. This well-deserved award speaks to their dedication, hard work and professionalism. Fred and Lia are dedicated public servants who embody our ongoing commitment to serve our communities and further the cause of justice,” said U.S. Attorney King.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Charlotte Auto Repair Auto Shop Owner Is Sentenced and Fined for Violating the Clean Air ActRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Jamal Saymeh, 59, of Charlotte, N.C., to 12 months and one day in prison followed by two years of supervised release for violating the Clean Air Act, by fraudulently coding over 15,000 vehicles that would have otherwise failed the required State emissions inspection, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Judge Whitney also ordered Saymeh to pay a $1,202,288.50 fine and $82,026 in restitution to the State of North Carolina.
Michael Sparks, Special Agent in Charge of the Environmental Protection Agency’s Office of Inspector General (EPA-OIG), Charles Carfagno, Special Agent in Charge of the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID), and Colonel Michael Oates of the North Carolina Department of Transportation License and Theft Bureau (NCDOT) join U.S. Attorney King in making today’s announcement.
Saymeh is the owner and operator of Friendly Auto Repair (FAR) shop, located in Charlotte. In addition to auto repairs, in 2017, FAR became licensed by the North Carolina Department of Transportation to perform emissions inspections. According to filed documents and court proceedings, between 2017 and 2022, Saymeh used his business to execute a scheme to violate the Clean Air Act by falsely changing the information of vehicles that would have otherwise failed the required State emissions testing, so that they were no longer required by the State’s registration system to have a passing emissions test.
According to court records, in some instances Saymeh executed the scheme by doing “county swaps,” meaning by falsifying in the system the county of registration for 11,568 vehicles from a county that required an emissions test to a county where no emissions testing was required. In other instances, Saymeh changed in the system the characterization of 3,622 trucks, from light duty trucks that require emissions inspections to heavy duty trucks that do not require such testing. During the relevant time period, court documents show that Saymeh falsified the information for at least 15,190 vehicles that would have otherwise failed their State emissions inspections.
In exchange for falsifying vehicle information, Saymeh received cash payments from customers that far exceeded what customers would have paid to have an emissions inspection. In addition, Saymeh paid the State of North Carolina only $0.85 per non-emissions/safety inspection, instead of the $6.25 per vehicle charge he should have paid for an inspection.
“Vehicle emissions testing is required to protect the health and safety of our communities,” said U.S. Attorney King. “As part of my Office’s Environmental Justice Initiative, we will hold polluters accountable for their actions and protect communities harmed by environmental violations.”
“Today, Jamal Saymeh faced the consequences of knowingly and intentionally making false material statements affecting an EPA program,” said Special Agent in Charge Sparks. “Fraudulent activities like these harm our fellow Americans and diminish the public’s trust in EPA programs and operations. The EPA Office of Inspector General will continue to diligently protect both.”
“Mr. Saymeh was sentenced today for conspiring to violate the Clean Air Act and for fraudulent vehicle emissions testing,” said Special Agent in Charge Carfagno. “The defendant’s criminal activity intentionally increased air pollution in communities where these vehicles operate further exacerbating respiratory illnesses and environmental degradation. Today’s sentence serves as a reminder that EPA and our partners are steadfast in our commitment to protect human health and the environment.”
On December 14, 2022, Saymeh pleaded guilty to one count of conspiracy to defraud the Clean Air Act, and two counts of violating the Clean Air Act. Saymeh will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the EPA-OIG, EPA-CID, and NC DOT for their coordination and investigation of the case.
Assistant United States Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
U.S. Attorney's Office Hosts Annual Distinguished Victim Services Award CeremonyRead the Press Release
CHARLOTTE, N.C. – To commemorate National Crime Victims’ Rights Week (NCVRW),
the U.S. Attorney’s Office for the Western District of North Carolina hosted its annual Distinguished Victim Services Award ceremony, recognizing 11 recipients for their significant support, advocacy, and services to crime victims and their contributions to the cause of justice.
National Crime Victims’ Rights Week is April 23-29, 2023. The Justice Department’s Office for Victims of Crime (OVC) has selected this year’s NCVRW theme, “Survivor Voices: Elevate. Engage. Effect Change,” to emphasize the importance of engaging with victims of crime; learning from their lived experiences; amplifying their voices; and fostering an environment where they are heard, believed, and supported.
“National Crime Victims’ Rights Week is an opportunity to honor and recognize outstanding individuals and organizations for their efforts to advocate on behalf of crime victims, and for their exceptional commitment to the pursuit of justice for victims and their families,” said U.S. Attorney Dena J. King. “This year’s recipients were selected for their professionalism, their advocacy, their superior service to crime victims, and their unwavering commitment to making sure that crime victims, crime survivors and their families have equal access to the resources and services they are entitled to on their path to recovery.”
The 11 award recipients recognized for their work are:
Outstanding Law Enforcement Award
- Deputy David Coffman – Catawba County Sheriff’s Office
- Special Agent Timothy Kyle Thiel – Homeland Security Investigations
Outstanding Criminal Justice Professional Award
- Assistant U.S. Attorney William Bozin
- Assistant U.S. Attorney Lambert Guinn
Outstanding Support Staff Award
- Supervisory Legal Assistant Pamela Burgess
- Student Intern Marim Habib
Outstanding Victim Advocate Award
- Adelaide Auman – Charlotte Mecklenburg Police Department
- Migdalia Cortes – Charlotte Mecklenburg Police Department
- Present Age Ministries – Concord, North Carolina
Outstanding USAO Partner
- Tracey Bernstein – Holiday Inn City Center
- Demetria Brittingham - U.S. Marshals Service
In presenting the awards today, U.S. Attorney King thanked the recipients for their outstanding dedication and service in working with crime victims and noted the important role each honoree has played in delivering justice and providing victims with the support they need in the aftermath of crime.
Throughout the nation and in the Western District of North Carolina, victim advocacy organizations, community groups, and state, local, and Tribal agencies host rallies, candlelight vigils, and other events during NCVRW, to raise awareness of victims’ rights and services.
The Office for Victims of Crime leads communities in their annual observances of NCVRW. On Wednesday, April 26, 2023, a candlelight vigil will be held on the National Mall from 7:00 p.m. to 8:00 p.m. eastern time, to pay tribute to victims of crime and the many dedicated professionals and volunteers who advocate on their behalf. Attendees will also observe a moment of silence to honor all crime victims. Use this link to register for the event. For more information about how to support all victims of crime, visit OVC’s website at ovc.ojp.gov.
Additional information about the U.S. Attorney’s Office Victim/Witness Assistance Program can be found here.
The U.S. Attorney's Office Observes National Crime Victims' Rights WeekRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office for the Western District of North Carolina joins the Justice Department, law enforcement agencies, service providers, allied
professionals and communities nationwide to commemorate National Crime Victims’ Rights Week (NCVRW) from April 23-29, 2023.
The Justice Department’s Office for Victims of Crime (OVC) has selected this year’s theme, “Survivor Voices: Elevate. Engage. Effect Change,” to emphasize the importance of engaging with victims of crime; learning from their lived experiences; amplifying their voices; and fostering an environment where they are heard, believed, and supported.
To commemorate NCVRW, the U.S. Attorney’s Office will host a Distinguished Victim Services Award ceremony on Wednesday, April 26, 2023, to recognize outstanding individuals for their significant support and service to crime victims and their contributions to the cause of justice. The award recipients were selected for their professionalism, compassion, and superior service to crime victims, their efforts to restore victims’ security and trust, their extraordinary efforts to advocate on behalf of crime victims, and their exceptional commitment to the pursuit of justice for the victims and their families.
The U.S. Attorney’s Office will also host a Victim Services Meetup on Thursday, April 27, 2023, for victim advocates. This meeting will focus on promoting networking and resource building among service providers working with federal and state prosecutors and law enforcement agencies within the 32 counties in Western North Carolina that the U.S. Attorney’s Office serves, to expand and strengthen the provision of services to victims of crime.
“Crime victims and crime survivors deserve our compassion, our attention, and our dedication,” said U.S. Attorney Dena J. King. “My Office stands with crime victims, survivors, and their families, and we reaffirm our collective mission to protect their rights, offer assistance, and provide access to resources centered on their individual needs at every step of the criminal justice process and beyond.”
Throughout the nation and in the Western District of North Carolina, victim advocacy organizations, community groups, and state, local, and Tribal agencies host rallies, candlelight vigils, and other events during NCVRW, to raise awareness of victims’ rights and services.
The Office for Victims of Crime leads communities in their annual observances of NCVRW. On Wednesday, April 26, 2023, a candlelight vigil will be held on the National Mall from 7:00 p.m. to 8:00 p.m. eastern time, to pay tribute to victims of crime and the many dedicated professionals and volunteers who advocate on their behalf. Attendees will also observe a moment of silence to honor all crime victims. Use this link to register for the event. For more information about how to support all victims of crime, visit OVC’s website at ovc.ojp.gov.
Additional information about the U.S. Attorney’s Office Victim/Witness Assistance Program can be found here.
Postal Service Employee Arrested for Mail TheftRead the Press Release
CHARLOTTE, N.C. – A United States Postal Service employee appeared in federal court today on mail theft and related charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Demarkis Deon Houston, 30, of Charlotte, was arrested on Thursday, April 20, 2023. Houston is charged with mail destruction, theft of mail by a Postal Service employee, and possession of a stolen firearm.
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 Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, join U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, on August 31, 2022, Houston unlawfully opened and destroyed mail entrusted to him. The indictment also alleges that on September 19, 2022, Houston removed from mail entrusted in his care a 9mm firearm, which was intended to be delivered by a carrier of the Postal Service. The indictment further alleges that on October 10, 2022, Houston possessed a stolen firearm.
Houston was released on bond following his initial appearance before U.S. Magistrate Judge Susan C. Rodriguez.
The charge of destruction of mail and theft of mail by a postal employee each carry a maximum sentence of five years in prison. The possession of a stolen firearm offense carries a statutory maximum penalty of 10 years in prison.
The charges against Houston are allegations. 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 thanked USPS-OIG and ATF for their investigation of the case.
Assistant U.S. Attorney Regina H. Pack of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
South Carolina Man Convicted of Robbing A Mount Pleasant Restaurant at Gunpoint Is Sentenced to 50 Years in PrisonRead the Press Release
CHARLESTON, S.C. – Brandon Lloyd Daniels, 31, of North Charleston, South Carolina, was sentenced today to 50 years in prison followed by five years of supervised release for the 2018 armed robbery of the Tavern and Table restaurant in Mount Pleasant, S.C., announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Bruce Howe Hendricks presided over the sentencing hearing.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in North Carolina and South Carolina, and Chief Mark Arnold of the Mount Pleasant Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents, evidence presented at trial, and witness testimony, on the evening of April 4, 2018, officers with the Mount Pleasant Police Department responded to reports of a robbery and shooting at the Tavern and Table restaurant, located at 100 Church Street in Mount Pleasant. Trial evidence established that around 11:30 p.m., shortly after the restaurant closed for the evening, Daniels entered the restaurant through the back door wearing a face covering and went into the restaurant’s office, where several employees were gathered. Daniels pointed his firearm at the employees and demanded money. According to trial evidence, Daniels aimed his firearm at the restaurant’s assistant manager and shot him in the lower back. The victim sustained serious, permanent injuries from the gunshot.
Following the shooting, the employees complied with Daniels’ demands and handed him several of the restaurant’s cash drawers. As Daniels fled the scene, he fired two more shots inside the restaurant in the direction of another employee.
In July 2022, a federal jury convicted Daniels of Hobbs Act robbery, discharging a firearm during and in relation to the robbery, and felon in possession of ammunition.
In October 2021, following a bench trial before Judge Hendricks, Daniels was convicted of possession of a sawed-off shotgun and possession of a firearm and ammunition by a felon. The convictions stemmed from investigators’ discovery of a sawed-off shotgun in Daniels’ bedroom during the execution of a search warrant in connection with the Tavern and Table robbery.
Daniels is in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In announcing today’s sentence, Judge Hendricks described the shooting as “vicious,” and said that “This offense involved a tragic robbery, shooting, and maiming of an innocent man tantamount to attempted murder.” She also noted that “it is a miracle the victim did not die,” and that the “amount of physical damage to the victim is unparalleled.”
U.S. Attorney King commended the ATF and the Mount Pleasant Police Department for their investigation of the case and thanked the FBI for their substantial assistance.
Assistant U.S. Attorneys Taylor Stout, Regina Pack, and Erik Lindahl, of the U.S. Attorney’s Office for the Western District of North Carolina in Charlotte, prosecuted the case.
Fentanyl Dealer Responsible for Two Drug Overdoses Is Sentenced to 20 Years in PrisonRead the Press Release
ASHEVILLE, N.C. – Megan Emily Tate, 29, of Sylva, N.C., was sentenced today to 20 years in prison followed by five years of supervised release, for distributing a substance that contained fentanyl and caused two overdoses, 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 North Carolina, and Sheriff Doug Farmer of the Jackson County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
“Fentanyl is a highly potent substance that can quickly cause accidental drug poisoning. In many instances, victims do not know they are ingesting a potentially deadly drug until it’s too late,” said U.S. Attorney King. “The surge in fentanyl distribution is affecting families and communities everywhere. Law enforcement agencies at the federal, state, and local level are committed to dismantling fentanyl networks and holding accountable those who engage in the distribution of this dangerous drug.”
“Fentanyl is extremely dangerous and leaves behind a trail of devastation. Ms. Tate obviously had total disregard for the safety of others,” said Special Agent in Charge Murphy.
According to filed court documents and today’s sentencing hearing, in April 2021, deputies with the Jackson County Sheriff’s Office arrested Tate for suspected distribution of fentanyl. While Tate was in custody at the Jackson County Detention Center, she supplied two inmates with fentanyl, causing them to overdose. As a result, both overdose victims were transported to the hospital and one victim was placed on a ventilator. Both victims later recovered from their drug overdose. According to court documents, over the course of the investigation into the drug overdose incidents, law enforcement determined that Tate had supplied each victim with a substance that contained fentanyl, which Tate had concealed and later retrieved from her body cavity while in the detention center.
According to the DEA, fentanyl is a synthetic opioid that is 50 times more potent than heroin and 100 times more potent than morphine. Fentanyl remains the deadliest drug threat in the United States. According to the CDC, more than 100,000 people in the United States died of drug overdoses and drug poisonings in the 12-month period ending in January 2022. Sixty-seven percent of those deaths involved synthetic opioids like fentanyl. Some of these deaths were attributed to fentanyl mixed with other illicit drugs like cocaine, methamphetamine, and heroin, with many users unaware they were actually taking fentanyl.
On January 30, 2023, Tate pleaded guilty to distribution of a mixture of substance containing fentanyl. She is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the DEA’s Asheville Post of Duty and the Jackson County Sheriff’s Office for their investigation of this case.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Charlotte Methamphetamine Trafficker Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Michael Separ, 40, of Charlotte, was sentenced to 10 years in prison today 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, in July 2021, an investigation began into Separ’s drug distribution activities. On July 28, 2021, CMPD officers pulled over Separ’s vehicle for a traffic violation. Over the course of the traffic stop, Separ attempted to flee the scene. Following that incident, court documents show that officers conducted a search of Separ’s vehicle, seizing more than half a kilogram of methamphetamine, nearly half a kilogram of cocaine, almost a kilogram of marijuana, and four firearms and ammunition. On July 29, 2021, a search warrant was executed at Separ’s residence, and law enforcement seized more drugs, two additional firearms, and ammunition.
On November 16, 2022, Separ pleaded guilty to possession with intent to distribute 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), the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), 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 United States Attorney Alfredo De La Rosa, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Asheville Methamphetamine Trafficker and Pill Distributor Is Sentenced to PrisonRead the Press Release
ASHEVILLE, N.C. – An Asheville methamphetamine trafficker and pill distributor was sentenced to 151 months in prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. John Paul Roberts, 40, was also ordered to serve five years of supervised release after he completes his prison term. U.S. District Judge Martin Reidinger imposed today’s sentence.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, 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 court documents and today’s hearing, in January 2020, an investigation began into Roberts’ drug distribution activities, after law enforcement determined that Roberts and an associate were mailing pills containing methamphetamine via the U.S. Mail to customers throughout the United States. The investigation eventually revealed that Roberts and his associate used the Dark Web to obtain the methamphetamine. Roberts then mixed the methamphetamine with other ingredients and used pill presses to manufacture thousands of pills, which he and his associate falsely marketed and sold on the Dark Web as Adderall®. Over the course of the investigation, law enforcement documented that Roberts and his associate manufactured and sold thousands of pills containing methamphetamine and mailed pills to customers in 19 states. Court records show that Roberts and his associate also sold methamphetamine in wholesale quantities to local drug traffickers, with a combined street value of more than $1 million.
On December 5, 2022, Roberts 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. 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 HSI and USPIS for their investigation of this case.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Charlotte prosecuted the case.