Western District of North Carolina
Press releases recorded for this federal judicial district.
Shelby, N.C. Man Is Sentenced to More Than 17.5 Years for Trafficking Fentanyl and CocaineRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Chadwick Javon Strong, also known as “Izeem Ockman Ackridge,” 45, of Shelby, N.C., to 214 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.
According to filed court documents and court proceedings, from 2018 to July 2021, Strong distributed fentanyl and cocaine in Mecklenburg, Gaston, and Cleveland Counties. Over the course of the investigation into Strong’s drug trafficking activities, law enforcement determined that the defendant sold and possessed with intent to distribute almost one kilogram of fentanyl, and that Strong sold the fentanyl with pill markings for a different substance. In addition to the narcotics, Strong was found in possession of more than $3,000 in cash and two handguns.
Strong pleaded guilty to conspiracy to distribute and to possess with intent to distribute
and distribution of fentanyl and cocaine. Strong remains in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
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. Just two milligrams of fentanyl, which is equal to 10-15 grains of table salt, is considered a lethal dose. According to the CDC, 107,375 people in the United States died of drug overdoses and drug poisonings in the 12-month period ending in January 2022. A staggering 67 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.
U.S. Attorney King credited today’s outcome to investigations led by the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF), which have resulted in the conviction of more than 70 individuals, and the seizure of over 567 kilograms of cocaine, over 30 kilograms of fentanyl, more than 17 kilograms of methamphetamine, more than six kilograms of cocaine base, and over four kilograms of heroin, 127 firearms, and more $437,000 in cash and other property.
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 Federal Bureau of Investigation, the Gastonia Police Department, the Charlotte-Mecklenburg Police Department, and Cleveland County Sheriff’s Office for their coordination and investigation of the case.
Assistant United States Attorneys Steven R. Kaufman and Erik Lindahl of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Previously Convicted Fraudster Is Sentenced to Prison for Bank FraudRead the Press Release
CHARLOTTE, N.C. – Joseph A. DiBruno, Jr., 54, of Gastonia, N.C., was sentenced today to 24 months in prison followed by two years of supervised release for bank fraud, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney ordered this sentence to be served consecutive to the remaining term of DiBruno’s federal prison sentence stemming from his 2008 federal fraud conviction.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, join U.S. Attorney King in making today’s announcement.
According to filed documents and statements made in court, in 2008, DiBruno was sentenced to more than 21 years in prison after pleading guilty in the Western District of North Carolina to conspiracy to defraud the United States, money laundering conspiracy, and concealment of assets. On April 8, 2020, DiBruno was approved for placement on home confinement due to the COVID-19 pandemic. At that time, the federal Bureau of Prisons calculated DiBruno’s estimated release date as June 2025.
Court records show that, after his release to home confinement in May 2020, DiBruno obtained or attempted to obtain loans from at least two financial institutions, based on fraudulent statements and false information he submitted on loan applications. For example, on one loan application DiBruno falsely claimed that he had been employed as Director of Data Analytics by a company listed as M.R.S., that he earned an average monthly salary of up to $8,000, and that he had lived at the residential address listed on the application for over four years, all of which information was untrue. According to court documents, between May 2020 and June 2021, DiBruno submitted at least five fraudulent loan applications to two financial institutions seeking funds totaling over $120,000.
In pronouncing the sentence, Judge Whitney stated that DiBruno received a “windfall” under the CARES Act but got “right back in the game” and had “a serious history of committing fraud” and “never learned his lesson.”
On April 6, 2022, DiBruno pleaded guilty to making false statements to a credit union. He is currently in federal custody. He will be transferred to the custody of the federal Burau of Prisons upon designation of a federal facility.
The FBI and USPIS led the investigation. Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Two Charlotte Businessmen Indicted for Allegedly Failing to Account for and Pay More Than $600,000 in Trust Fund TaxesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that a federal grand jury in Charlotte returned an indictment, charging two Charlotte businessmen with failing to account for and pay over to the Internal Revenue Service (IRS) more than $600,000 in trust fund taxes.
Donald "Trey" Eakins, Special Agent in Charge of the IRS, Criminal Investigation Division (IRS-CI), Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
According to the indictment, rFactr was a company with offices in Charlotte, that sold software and provided ongoing support for that software to companies that were leveraging their social networks as part of their sales platforms. Richard Brasser was rFactr’s Chief Executive Officer and Gregory Gentner was its Chief Operating Officer. The indictment alleges that, from 2015 through 2017, Brasser and Gentner caused rFactr to collect more than $600,000 in trust fund taxes from the wages of its employees but neither accounted for the taxes by filing Forms 941 with the IRS nor timely paying over the withheld taxes to the IRS.
As alleged in the indictment, Brasser and Gentner had a history of noncompliance with rFactr’s employment tax obligations. Specifically, between 2013 and 2017, Brasser and Gentner allegedly failed to comply with rFactr’s employment tax obligations by failing to timely file rFactr’s employment tax returns and failing to timely pay over to the IRS rFactr’s employment taxes. In total, Brasser and Gentner allegedly caused rFactr to owe more than $1.1 million in employment taxes.
The indictment further alleges, between May 2018 and December 2021, Brasser evaded the payment of the trust fund recovery penalty (TFRP), by using nominee bank accounts to pay for personal expenses, including country club fees, luxury furniture, credit card bills, and private school tuition; purchasing real and personal property in the names of nominees instead of his own name; purchasing real and personal property and paying for other personal expenses while falsely representing to the IRS that he did not have sufficient funds to pay the TFRP; and making false oral and written statements to the IRS about his income, expenses, and assets.
Finally, the indictment also alleges that Brasser and Gentner both filed 2015 and 2016 tax returns which falsely reported that taxes were withheld and paid over to the IRS on their behalf by rFactr. As a result, Brasser either fraudulently reduced his tax due and owing or fraudulently received a refund, and Gentner fraudulently received a refund.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Brasser and Gentner each face a maximum sentence of five years in prison for each of multiple counts of failing to account for and pay over the trust funds taxes and up to three years in prison for each of multiple counts of filing false personal tax returns. Brasser also faces a maximum sentence of five years in prison for evasion of payment, if convicted.
IRS-Criminal Investigation is investigating the case.
Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
- U.S. Attorney's Office Recognizes National Human Trafficking Prevention Month
Federal Jury Finds Cherokee, N.C. Man Guilty of Firearms OffenseRead the Press Release
ASHEVILLE, N.C. – A federal jury in Asheville has convicted Tarrell Leshaun Williams, 42, of Cherokee, N.C., of possession of a firearm by a convicted felon, 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 Asheville Post of Duty, Jerin Falcon, Deputy Associate Director of the Bureau of Indian Affairs (BIA), Division of Drug Enforcement, and Chief David Zack of the Asheville Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents, trial evidence and witness testimony, on February 11, 2022, law enforcement officers attempting to serve Williams with a federal arrest warrant located the defendant at an apartment complex in Asheville. According to trial evidence, prior to effectuating the arrest warrant, law enforcement observed Williams placing an item – later identified as a Taurus 9mm firearm – in the trunk of his vehicle. Williams was arrested shortly thereafter. Williams has prior felony criminal convictions and he is prohibited from possessing a firearm.
Williams remains in federal custody. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King thanked the DEA’s Asheville Post of Duty, the BIA, and the Asheville Police Department for their investigation of the case and the Bureau of Alcohol, Tobacco, Firearms & Explosives for their substantial assistance.
Assistant U.S. Attorneys John Pritchard and Alexis Solheim of the U.S. Attorney’s Office in Asheville prosecuting the case.
Charlotte Man Is Convicted of Defrauding the North Carolina Medicaid ProgramRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte has convicted Donald Booker, 57, of Charlotte, of multiple federal charges in connection with a scheme to obtain more than $11 million from the North Carolina Medicaid program, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. On December 9, 2022, Booker’s co-defendant, Delores Jordan, 54, of Louisville, Kentucky, pleaded guilty for her role in the fraudulent scheme.
Joining U.S. Attorney King in making today’s announcement are Michael C. Scherck, Acting 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, (IRS-CI) Charlotte Field Office, and North Carolina Attorney General Josh Stein, who oversees the North Carolina Medicaid Investigations Division (MID).
According to filed court documents, trial evidence and witness testimony, Booker owned United Diagnostic Laboratories (UDL), a urine toxicology testing laboratory, and United Youth Care Services (UYCS), a company that provided mental health and substance abuse treatment services. Booker’s co-defendant, Jordan, owned Legacy Housing, a housing provider. Trial evidence established that, from January 2016 to August 2019, Booker and his co-conspirators executed a conspiracy to defraud the North Carolina Medicaid program by paying illegal kickbacks to Jordan and other co-conspirators in exchange for urine samples from Medicaid-eligible beneficiaries.
As Jordan previously admitted in court, she and other co-conspirators recruited housing-vulnerable individuals and other Medicaid-eligible beneficiaries for housing and other programs and services. Once enrolled, the beneficiaries were required to submit urine specimens for drug testing as a condition of their participation in the program. The specimens were provided to UDL and UYCS for medically unnecessary urine drug testing. Booker and his co-conspirators paid the recruiters a kickback from UYCS’s NC Medicaid reimbursement on the drug testing. According to evidence presented at trial, Booker and Jordan also executed a conspiracy to launder the proceeds of the kickback and health care fraud conspiracy in order to conceal and disguise the nature and source of UYCS’s illegal kickback payments for drug testing referrals.
The jury convicted Booker of conspiracy to commit health care fraud, multiple violations of the Anti-Kickback Statute, money laundering conspiracy, and money laundering. Jordan pleaded guilty to healthcare fraud conspiracy and money laundering conspiracy. A sentencing date for the defendants has not been set.
The FBI, IRS-CI, and NC Medicaid Investigations Division investigated the case.
Assistant U.S. Attorneys Graham Billings and Michael Savage of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Repeat Gastonia Drug Trafficker Is Found Guilty of Drug DistributionRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte delivered a guilty verdict against Kenter O’Neal Ruff, 43, of Gastonia, N.C., for drug distribution, 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 three-day trial which ended today.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Interim Chief Trent Conrad of the Gastonia Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents, evidence introduced at trial and witness testimony, over the course of an investigation into drug trafficking in Gaston County, law enforcement identified Ruff as a local drug distributor. According to trial evidence, on multiple occasions between October 2020 and April 2021, Ruff sold cocaine base to an individual cooperating with law enforcement. At the time, Ruff was on supervised release stemming from a prior federal drug conviction and had additional state convictions related to drug trafficking and drug possession.
The federal jury convicted Ruff of four counts of distribution of cocaine base. Ruff remains in federal custody. A sentencing date has not been set.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Attorney King thanked the FBI and the Gastonia Police Department for their investigation of the case.
Assistant United States Attorneys Thomas Kent and Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte and Special Assistant United States Attorney (SAUSA) William Wiseman are prosecuting the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 26th Prosecutorial District and the United States Attorney’s Office.
Charlotte Man Is Sentenced for Armed Robbery and Firearms OffensesRead the Press Release
CHARLOTTE, N.C. –Valentino Cabral Darosa, 30, of Charlotte, was sentenced to 17 years in prison followed by three years of supervised release for the armed robbery of a local business and related firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to filed court documents, evidence introduced at trial and witness testimony, on October 23, 2020, CMPD officers responded to a robbery service call at Atlantic Metals Xchange, located at 11318 N. Community House Road, in Charlotte. The store owner told officers at the scene that prior to opening for business an individual later identified as Darosa approached the store and knocked on the door. When the store owner did not immediately answer, Darosa walked away. The store owner then went outside and approached Darosa. Following a brief exchange, Darosa produced a firearm and forced the store owner into the business and into a back room. As trial evidence established, Darosa ordered the store owner to unplug the surveillance system’s recorder, then handcuffed the store owner and opened the safes. Darosa began stealing items from the safes and proceeded to duct-tape the store owner’s hands and ankles together. Court records show that Darosa took approximately $133,980 in property and cash and the surveillance system’s hard drive. Darosa also took the store owner’s backpack, which contained a firearm, cash, and the victim’s wallet. After Darosa fled the scene, the store owner managed to free himself and call 911 for assistance. On November 5, 2020, CMPD officers arrested Darosa at his apartment in Charlotte. During a search of Darosa’s apartment and vehicle, law enforcement recovered several items Darosa had stolen from the business. According to court records, Darosa was on post-release supervision when he committed the armed robbery. He also has multiple felony convictions in Mecklenburg and Cabarrus Counties and he is therefore prohibited from possessing a firearm.
A federal jury convicted Darosa of robbery of a business affecting interstate commerce, or Hobbs Act Robbery, using or carrying a firearm during and in relation to a crime of violence, and possession of a firearm by a felon. He is currently in federal custody.
In making today’s announcement U.S. Attorney King thanked the FBI and CMPD for their investigation of the case.
Assistant U.S. Attorneys Christopher Hess and Dana Washington prosecuted the case.
Georgia Inmate Is Convicted of Trafficking MethamphetamineRead the Press Release
STATESVILLE, N.C. – A federal jury in Statesville has convicted Alfonso Roman Brito, 43, of trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell presided over the three-day trial which ended on Wednesday.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), Sheriff Banks Hinceman of the Burke County Sheriff’s Office, and Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to filed court documents, evidence introduced at trial and witness testimony, in 2019, HSI, the DEA, the Burke County Sheriff’s Office, and the Catawba County Sheriff’s Office were investigating a Drug Trafficking Organization (DTO) operating in the Catawba County, Burke County, and surrounding communities. Trial evidence established that Brito was an inmate in the Georgia Department of Corrections and was coordinating the shipments of multiple kilograms of methamphetamine from the Atlanta area into the Western District of North Carolina. According to information presented at trial, between 2019 and into the fall of 2021, Brito orchestrated the delivery of more than 100 kilograms of methamphetamine from Georgia into North Carolina.
The federal jury convicted Brito of conspiracy to distribute and to possess with intent to distribute methamphetamine and distribution of methamphetamine, which carries a maximum term of life in prison and a $10,000 fine. Brito remains in federal custody. A sentencing date has not been set.
In making today’s announcement U.S. Attorney King commended the DEA, HSI, the Burke County Sheriff’s Office, and the Catawba County Sheriff’s Office for leading the investigation. U.S. Attorney King also thanked the Caldwell County Sheriff’s Office, the Newton Police Department, the Hickory Police Department, and the Georgia Department of Corrections for their assistance in the investigation.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville is prosecuting the case.
Unlicensed Firearms Dealer Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Today, Desmon Taylor Moore, 24, of Charlotte, was sentenced to 37 months in prison followed by three years of supervised release on multiple firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, between 2021 and March 2022, Moore engaged in the manufacturing and sale of firearms without a license. ATF agents investigating Moore determined that Moore illegally sold conversion devices (commonly known as “Glock switches”) which enable a semi-automatic handgun to function as an automatic.
Moore also engaged in the sale of multiple firearms and privately-made firearms (or “Ghost guns”), some of which had been converted into machineguns using the illegal conversion devices. Federal law prohibits the possession of machineguns and defines “machinegun” to include parts designed or intended for use in converting a weapon into a machinegun. According to court records, two undercover ATF agents also attended a class Moore taught on how to build privately-made firearms and install Glock switches.
On July 26, 2022, Moore pleaded guilty to multiple firearms offenses, including dealing and manufacturing firearms without a license, and possession and transfer of machineguns. Moore 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 ATF for their investigation of the case.
Assistant U.S. Attorney David Kelly, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
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Trafficker of Multiple Kilograms of Methamphetamine Is Sentenced to More Than 21 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Miguel Angel Lopez-Resendiz, 28, a Mexican national residing in Charlotte, was sentenced to 262 months in prison followed by three years of supervised release today for trafficking over six kilograms of methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, Chief Johnny Jennings of the Charlotte Mecklenburg Police Department, and Chief Joseph Hatley of the Mint Hill Police Department join U.S. Attorney King in making today’s announcement.
According to court records and court proceedings, from June to September 2021, Lopez-Resendiz trafficked a substantial amount of methamphetamine in and around Mecklenburg County. Court records show that, on at least two occasions, Lopez-Resendiz sold methamphetamine to an undercover agent. On one such occasion, on September 9, 2021, Lopez-Resendiz met with the undercover agent in the parking lot of a restaurant, where he sold the agent nearly one kilogram of methamphetamine. On September 23, 2021, Lopez-Resendiz arranged another drug transaction with the undercover agent. When Lopez-Resendiz arrived to complete the transaction, law enforcement attempted to arrest him. Lopez-Resendiz fled, and law enforcement arrested him after a short foot chase. Law enforcement searched Lopez-Resendiz’s vehicle. In the trunk, law enforcement found nearly two kilograms of methamphetamine and a semiautomatic assault rifle loaded with a high capacity drum magazine capable of holding more than 100 rounds of ammunition. As part of the law enforcement operation, investigators also executed a search warrant at Lopez-Resendiz’s drug stash house, from which they seized over three additional kilograms of methamphetamine. Over the course of the investigation into Lopez-Resendiz, law enforcement determined that he had trafficked more than six kilograms of methamphetamine.
On June 24, 2022, Lopez-Resendiz 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.
In making today’s announcement, U.S. Attorney King commended the DEA, CMPD and the Mint Hill Police Department for their investigation of the case.
Assistant U.S. Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Repeat Offender on Supervised Release Is Sentenced to Prison for Using Stolen Mail to Commit Wire FraudRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Soheil Akhavan Rezaie, 39, of Charlotte, was sentenced to 57 months in prison, followed by two years of supervised release for stealing mail from residential mailboxes and using the stolen information to commit wire fraud, and for violating the terms of his supervised release stemming from a 2017 conviction.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney King in making today’s announcement.
According to court records and court proceedings, beginning in 2021 through March 2022, Rezaie and others targeted neighborhoods in Charlotte and surrounding areas and stole large quantities of mail from residential mailboxes. The stolen mail included credit cards, tax forms, financial statements, personal identifying information (PII), and personal and business bank checks. As Rezaie previously admitted in court, he altered the amounts of the stolen checks or changed the names of the payees to his own and then deposited the altered checks into bank accounts he controlled. Rezaie then withdrew the funds before the victims and financial institutions had an opportunity to determine the checks were stolen. In other instances, Rezaie stole blank checks and wrote checks to himself, which he then cashed with various financial institutions. Rezaie caused more than $150,000 in loss through the fraudulent check cashing scheme. Court records also show that Rezaie used the stolen PII to create fake identification documents in the mail theft victims’ names.
Rezaie previously pleaded guilty to wire fraud. 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 FBI and USPIS for their investigation of the case.
Assistant U.S. Attorney Caryn Finley, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Each year, the U.S. Postal Service® handles billions of letters and packages, the majority of which arrive safely at their intended destinations. According to USPIS, here are the extra steps the public can take to prevent mail theft and ensure that mail arrives safely at its destination:
- Promptly pick up mail – try not to leave letters and packages in the mailbox or at the door unattended for any length of time.
- Deposit mail close to pick up time – deposit outgoing mail into collection boxes before the last collection or inside the local postal office.
- Inquire about overdue mail – if you have not received valuable or important mail you’re expecting, contact the sender to inquire about it.
- Do not send cash – be careful about what you are sending in the mail. Avoid mailing cash and gift cards.
- Arrange for prompt pick up – if you will not be available to receive a package in person, contact the postal service to hold your package.
- Use the Hold for Pick Up option – when shipping packages, use the Hold for Pick Up option, so the recipients can pick up package at their local post office.
- Request signature confirmation – when mailing important mail, consider requesting a signature confirmation from the recipient.
- File a change of address – when moving, promptly file a change of address with the Postal Service.
To report suspected mail theft, please call USPIS at 1-877-876-2455.
Father and Son Sentenced for $1.7 Million COVID-19 Relief FraudRead the Press Release
Two men were sentenced yesterday for their roles in the submission of fraudulent loan applications seeking more than $1.7 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Izzat Freitekh, 57, of Waxhaw, North Carolina, was sentenced to four years in prison and his son Tarik Freitekh, aka Tareq Freitekh, 35, whose last known residence was in Glendale, California, was sentenced to 87 months in prison. The government previously seized and secured the forfeiture of approximately $1.3 million in PPP funds illegally obtained by the Freitekhs, which has been returned to a victim lender.
According to court documents and evidence presented at trial, Izzat and Tarik Freitekh obtained approximately $1.7 million by submitting multiple fraudulent PPP loan applications for companies owned by Izzat Freitekh: La Shish Kabob, La Shish Kabob Catering, Green Apple Catering, and Aroma Packaging. The loan applications misrepresented the number of employees and payroll expenses. After obtaining the fraudulent loan proceeds, the Freitekhs engaged in unlawful monetary transactions with the proceeds of the scheme, including making $30,000 in payments to family members. In March 2022, a federal jury in the Western District of North Carolina convicted the Freitekhs of money laundering and other offenses.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Dena J. King for the Western District of North Carolina; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division; Special Agent in Charge Donald E. Eakins of the IRS Criminal Investigation (IRS-CI) Charlotte Field Office; and Special Agent in Charge Mark Morini of the U.S. Treasury Inspector General for Tax Administration (TIGTA) Southeast Field Division made the announcement.
The USPIS, IRS-CI, and TIGTA investigated the case.
Trial Attorneys Joshua DeBold and Matt Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark Odulio for the Western District of North Carolina prosecuted the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 192 defendants in more than 121 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with 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 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 https://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 https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Father and Son Sentenced for $1.7 Million COVID-19 Relief FraudRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that two men were sentenced yesterday for their roles in the submission of fraudulent loan applications seeking more than $1.7 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service (USPIS), Atlanta Division; Special Agent in Charge Donald E. Eakins of the IRS Criminal Investigation (IRS-CI), Charlotte Field Office; and Special Agent in Charge Mark Morini of the U.S. Treasury Inspector General for Tax Administration (TIGTA), Southeast Field Division, join U.S. Attorney King in making the announcement.
Izzat Freitekh, 57, of Waxhaw, North Carolina, was sentenced to 48 months in prison and his son Tarik Freitekh, aka Tareq Freitekh, 35, whose last known residence was in Glendale, California, was sentenced to 87 months in prison. The court also ordered each defendant to serve three years under court supervision upon completion of their prison terms The government previously seized and secured the forfeiture of approximately $1.3 million in PPP funds illegally obtained by the Freitekhs, which has been returned to a victim lender.
According to court documents and evidence presented at trial, Izzat and Tarik Freitekh obtained approximately $1.7 million by submitting multiple fraudulent PPP loan applications for companies owned by Izzat Freitekh: La Shish Kabob, La Shish Kabob Catering, Green Apple Catering, and Aroma Packaging. The loan applications misrepresented the number of employees and payroll expenses. After obtaining the fraudulent loan proceeds, the Freitekhs engaged in unlawful monetary transactions with the proceeds of the scheme, including making $30,000 in payments to family members. In March 2022, a federal jury in the Western District of North Carolina convicted the Freitekhs of money laundering and other offenses.
The USPIS, IRS-CI, and TIGTA investigated the case.
Assistant U.S. Attorney Mark T. Odulio with the Western District of North Carolina and Trial Attorneys Joshua DeBold and Matt Kahn of the Criminal Division’s Fraud Section prosecuted the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with 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 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 https://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 https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Charlotte Woman on Federal Supervised Release Is Sentenced to Prison for COVID-19 Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Nkhenge Shropshire, 49, of Charlotte, was sentenced today to 42 months in prison followed by three years of supervised release for submitting fraudulent loan applications to the U.S. Small Business Administration (SBA) to obtain COVID-19 relief loans, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined in making today’s announcement by Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte.
“At a time that businesses and communities were doing their best to survive the devastating impact of COVID-19, Shropshire was busy trying to make a quick buck and take advantage of the aid administered by the government,” said U.S. Attorney King. “There’s a price to pay by those who seek to exploit federal aid programs and that’s prison time. Together with our law enforcement partners we will continue to investigate and prosecute COVID-19 fraudulent schemes and hold perpetrators of fraud accountable for their actions.”
“In the midst of a pandemic and as the economy suffered, this defendant lined her pockets by cheating the federal aid provided by the government to assist those communities who struggled during these unprecedent times,” said Inspector in Charge Coke. “Our office will relentlessly pursue fraudsters that defraud federal programs for greed and personal gain.”
According to filed court documents and court proceedings, Shropshire conspired with others to defraud the SBA by submitting fraudulent applications for Economic Disaster Relief Loans (EIDL), available under the expanded Coronavirus Aid, Relief, and Economic Security (CARES) Act, to business owners adversely impacted by the COVID-19 pandemic. To obtain a loan under the EIDL program, business owners are required to submit certain information in support of the application, including information about the business’s gross revenues in the 12 months prior to COVID-19’s impact and the number of workers employed by the company, among other things.
According to court records, between July 2, and September 2, 2020, Shropshire and her co-conspirators submitted at least 10 fraudulent EIDL applications to the SBA. The applications and supporting documents were for fictitious businesses and contained false information regarding the total number of employees employed by each business and total gross revenues. Court records show that Shropshire and her co-conspirators attempted to obtain at least $331,072 in relief funds. The SBA accepted and paid out at least $45,000 to Shropshire and her co-conspirators as a result of the scheme. Court records reflect that Shropshire spent the fraudulent proceeds on personal expenses, including hotel stays, shopping sprees, and cars.
In 2014, Shropshire was convicted of filing false tax returns and lying on a loan application and was sentenced to 33 months in prison and five years of supervised release. Shropshire was on federal supervised release when she participated in the EIDL fraud scheme.
On May 6, 2022, Shropshire pleaded guilty to wire fraud conspiracy. She is in federal custody and will be transferred to the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended USPIS for their investigation of the case.
Assistant United States Attorney Matthew Warren, of the U.S. Attorney’s Office in Charlotte prosecuted the case.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with 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 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 https://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 https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Recidivist Sex Offender Is Sentenced to 35 Years in Prison for Possession of Child PornographyRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Timothy Scott Pennington, 56, of Dallas, N.C., to 35 years in prison for possession of child pornography that involved a prepubescent minor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Whitney also ordered Pennington to serve a lifetime under court supervision upon completion of the prison term and to register as a sex offender.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), join U.S. Attorney King in making today’s announcement.
“The sexual exploitation of children is a deplorable crime, and recidivist offenders who violate our nation’s child pornography laws will get the VIP treatment from federal prosecutors and our law enforcement partners. Pennington’s lengthy sentence is a testament to my office’s commitment to protect vulnerable children and bring to justice those who cause them harm,” said U.S. Attorney King.
“Protecting children from predators like Mr. Pennington it a top priority of HSI. As a repeat offender, this individual posed a serious threat to children in our community and, thanks to the teamwork of HSI, SBI and the U.S. Attorney’s Office, he is being held accountable for his criminal activity,” said HSI Special Agent in Charge Martinez.
“The work of the U.S. Attorney’s Office, HSI, and our agents on cases like this is why it is so important that we continue to work together to bring individuals who prey on the most vulnerable in our society, children, to justice,” said SBI Director Schurmeier.
According to filed court documents and today’s sentencing hearing, on June 1, 2021, acting on a cybertip submitted to the National Center for Missing and Exploited Children, law enforcement found several images of child pornography, including those involving a toddler, in Pennington’s Google account. Court documents show that Pennington is a recidivist sex offender with prior second degree sexual offense convictions in North Carolina. At the time of this offense, Pennington was serving a term of post-release supervision stemming from a North Carolina conviction for Felony Indecent Exposure. On June 2, 2021, federal, state and local law enforcement conducted a search at Pennington’s residence. According to court records, at that time, Pennington admitted to investigators to taking several of the child pornography images found by investigators, including images involving a toddler. In addition, over the course of the search, law enforcement seized two cell phones from Pennington. A forensic analysis of the devices revealed that Pennington possessed images and videos of child pornography, some of which depicted the sexual abuse of children. At today’s sentencing hearing, Judge Whitney applied a sentencing enhancement related to Pennington’s production of the child pornography.
In fashioning the sentence, Judge Whitney highlighted the defendant’s extensive criminal history of sexual offenses involving children and cited the need for specific deterrence, noting that the sentence would protect the public and send a message to the community that there are severe consequences for engaging in child exploitation.
On May 11, 2022, Pennington pleaded guilty to two counts of possession of child pornography that involved a prepubescent minor. 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 commended the HSI and SBI for their investigation of the case and thanked the North Carolina Division of Adult Correction and Juvenile Justice and the Gaston County Sheriff’s Office for their invaluable assistance. U.S. Attorney King also thanked Gaston County District Attorney Travis Page for his office’s coordination and assistance in this case.
Assistant U.S. Attorney Mark T. Odulio of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Ponzi Scheme Operators Are Sentenced to Prison for $4 Million Investment FraudRead the Press Release
CHARLOTTE, N.C. – The operators of a $4 million Ponzi scheme were sentenced to prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney ordered Austin Delano Page, 27, of Grover, N.C., to serve 97 months in prison, followed by two years of supervised release. Brandon Alexander Teague, 27, of Belmont, N.C., was sentenced to 48 months in prison and two years of supervised release. The defendants were also ordered to pay restitution in the amount of more than $4.1 million.
North Carolina Secretary of State Elaine F. Marshall, Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, join U.S. Attorney King in making today’s announcement.
“The defendants orchestrated an elaborate investment fraud scheme that caused extensive financial harm to their unsuspecting victims, some of whom were at or near retirement age,” said U.S. Attorney King. “Working with our law enforcement counterparts we will continue to investigate and prosecute scoundrels who cheat and lie their way into their investors’ pockets, only to squander away their victims’ money.”
“People placed their faith as well as their funds with Mr. Page and Mr. Teague. That trust was repeatedly broken over the course of this scam as Page and Teague spun false promises and falsified documents to create a fiction of highly lucrative trading, at one point indicating a $16 million balance for a brokerage account that was in fact broke, with a balance of under $7. Calling our Securities Division would have revealed that neither Page nor Teague were registered to sell securities in North Carolina, and that should always send up a major red flag for anyone considering an investment,” said Secretary Marshall.
“The U.S. Postal Inspection Service has been at the forefront of protecting consumers from fraud schemes for many years,” said Inspector in Charge Coke. “The U.S. Postal Inspection Service is proud to work along our fellow law enforcement partners and hold accountable anyone who engages in this type of financial fraud scheme.”
According to filed documents and court hearings, from October 2020 to December 2021, Page, assisted by Teague, engaged in an investment scheme that defrauded hundreds of investors of more than $4 million. Court documents show that the defendants falsely represented to victims that Page and Teague were operating D&T Investment Group (D&T), a hedge fund in Kings Mountain, N.C., that invested in various securities, including stock of well-known companies like Apple. Contrary to representations made to victim investors, D&T was not a hedge fund and it did not hold any securities licenses or registrations. Also, Page and Teague were not licensed to sell securities and did not have a background associated with the sale of securities.
According to court documents, Page was largely responsible for the “trading” side of the D&T business while Teague was largely responsible for the “back office” side of the D&T business. Both Page and Teague, as well as other D&T employees, were involved in the solicitation of investors. Page and Teague had investors sign, among other documents, an investment contract with D&T. These documents contained false information, including that D&T would guarantee 100% of the investors’ initial investment, and that investors would receive 70% of the trading profits. In reality, the investors’ money was not guaranteed, and the purported profits investors received were Ponzi-style payments, whereby the defendants used new investors’ money to make payments to existing investors. To cover up the fraud, Page caused Teague to send victim investors monthly statements that reflected fictitious trading gains, which Page had falsely reported to Teague. When certain investors and D&T employees, including Teague, began to question the legitimacy of D&T’s operations, Page created fictitious screenshots of various financial accounts that reflected inflated D&T account balances.
In addition to using a portion of the funds to make Ponzi payments, the defendants spent a significant portion of the investors’ money to pay excessive salaries and other compensation to D&T employees, including to members of Page’s family. Page also used victims’ money to pay for personal expenses such as clothing, jewelry, travel, luxury car rentals, and entertainment.
On December 2, 2021, as the fraudulent scheme was collapsing, the defendants traveled to Italy. On the same day, Page informed D&T employees, who did not know that D&T was a fraud, that they would be closing the company. The defendants were arrested on New Year’s Eve at JFK Airport in New York upon their voluntary return to the United States.
On April 20, 2022, Page pleaded guilty to wire fraud and Teague to securities fraud. They are currently released on bond and will be ordered to report to the federal Bureau of Prisons to begin serving their prison sentences upon designation of a federal facility.
In making today’s announcement U.S. Attorney King thanked the Securities Division of the North Carolina Secretary of State, the FBI and USPIS for their investigation of the case.
Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charlotte Man Is Sentenced to Prison for Illegal Possession and Transfer of A Machinegun and A Machinegun Conversion DeviceRead the Press Release
CHARLOTTE, N.C. – Zahari Serdarevic, 22, of Charlotte, was sentenced to 18 months in prison today for the possession and transfer of a machinegun and a machinegun conversion device, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Serdarevic was also ordered to serve three years under court supervision after he is released from prison.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and statements made in court, on October 5, 2021, Serdarevic illegally possessed and transferred a machinegun, which he sold to a confidential informant (CI) working with law enforcement. During the transfer, Serdarevic explained to the CI that the machinegun was fully automatic and cautioned the CI that the machinegun was illegal to possess. According to court documents, on November 4, 2021, Serdarevic sold the CI an illegal conversion device, commonly referred to as a “Glock switch,” which enables a semi-automatic handgun to function as an automatic. Federal law prohibits the possession of machineguns and defines “machinegun” to include parts designed or intended for use in converting a weapon into a machinegun.
On June 15, 2022, Serdarevic pleaded guilty to two counts of possession and transfer of a machinegun. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the ATF for their investigation of the case.
Assistant U.S. Attorney David Kelly, of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Administrator of Online Group Chat Dedicated to Trafficking Child Pornography Is Sentenced to 22 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – The administrator of an online group chat dedicated to the trafficking of child pornography has been sentenced to 22 years in prison, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Dakota Ray Maddy, 33, of Lenoir, N.C., will also be placed under a lifetime of supervised release after he is released from prison and will be required to register as a sex offender.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
“As the overseer of this vile group chat that existed for the sole purpose of trading videos and images depicting the sexual abuse of children, Maddy played an integral role in perpetuating the sexual exploitation of children online. I commend the FBI agents and federal prosecutors who worked together to bring this monster to justice,” said U.S. Attorney King.
According to filed documents and court proceedings, in June 2019, an FBI agent working in an undercover capacity accessed an online group chat dedicated to trading child pornography. Over the course of the investigation, the FBI identified Maddy as the group’s administrator. As the administrator, court documents show that Maddy was in charge of adding and deleting members from the group chat and required members to actively share child pornography or they would be removed. In addition to his administrative duties, Maddy shared child pornography in the group chat, and posted requests for others to send him child pornography. Forensic review of these files established that Maddy distributed a substantial amount of child pornography.
On June 14, 2022, Maddy pleaded guilty to advertising videos and images of children being sexually abused. 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 commended the FBI for their investigation of the case.
Assistant U.S. Attorney Mark T. Odulio of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Postal Carrier and Co-Conspirator Are Charged for Extensive Mail Theft SchemeRead the Press Release
CHARLOTTE, N.C. – Two criminal indictments were unsealed in federal court today following the arrest of a U.S. Postal Carrier and a co-conspirator for their involvement in an extensive mail theft scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, Jeff Krafels, Special Agent in Charge of the United States Postal Service, Office of the Inspector General (USPS-OIG) for the Mid-Atlantic Area Field Office (MAAFO), which oversees Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
Kiara Padgett, 28, of Waxhaw, N.C., is charged with one count of bank fraud conspiracy and 10 counts of mail theft by a postal employee. A separate indictment charges Terrell Alexander Hager Jr., 23, of Charlotte, with one count of bank fraud conspiracy and seven counts of possession of stolen mail.
According to allegations contained in Padgett’s indictment, Padgett was employed by the U.S. Postal Service as a mail carrier with a postal route in West Charlotte. From August 2021 to November 2022, Padgett allegedly used her position as a postal carrier to steal incoming and outgoing checks of businesses and individuals, which she then sold to other individuals located in Charlotte and Maryland. The indictment alleges that the total face value of the checks Padgett stole was more than $8.3 million. The indictment further alleges that between August 2021 and June 2022, Padgett received payments for her role in the scheme totaling at least $13,698.
The indictment filed against Hager alleges that, between August 2021 and November 2022, Hager and his co-conspirators obtained stolen checks from Padgett. The co-conspirators allegedly deposited the stolen checks into bank accounts Hager and others controlled, and then made cash withdrawals before the financial institutions detected the fraud. Over the course of the scheme, Hager and his co-conspirators allegedly deposited more than $27,000 in stolen checks and money orders. Hager also allegedly posted online for sale over 400 stolen checks totaling over $7.3 million. The checks posted by Hager were allegedly stolen from Padgett’s postal route in West Charlotte. According to today’s court proceedings, Hager was on probation with the state of North Carolina when he committed the fraud.
Padgett was released on bond following her court hearing. If convicted, Padgett faces a maximum prison term of 30 years and a $1 million fine for the bank fraud conspiracy charge, and five years in prison and a $250,000 fine for each of the 10 counts of theft of mail by a postal employee.
Hager remains in federal custody. If convicted, he is facing a maximum prison term of 30 years and a $1 million fine for the charge of conspiracy to commit bank fraud, and five years in prison and a $250,000 fine for each of the seven charges of possession of stolen mail.
The details contained in this indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The USPIS, USPS-OIG, and CMPD investigated the case. The prosecution is being handled by Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
Charlotte Man Charged in Connection with Multi-Million Dollar Investment SchemeRead the Press Release
CHARLOTTE, N.C. – An indictment was unsealed today in federal court charging Wynn A.D. Charlebois, 52, of Charlotte, with wire fraud and money laundering in connection with a multi-million dollar investment fraud scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Charlebois had his initial court appearance this morning after he surrendered to the FBI.
Michael C. Scherck, Acting Special Agent in Charge of the FBI’s Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, join U.S. Attorney King in making today’s announcement.
According to allegations contained in the indictment, from 2015 through October 2022, Charlebois used companies he owned and controlled, including WC Private, Wilcox Hybrid, Damon Investments, and others, to perpetrate a multi-million dollar fraudulent investment scheme that caused at least 39 victim investors and entities to lose more than $5.3 million. In furtherance of the scheme, Charlebois recruited victim investors including friends, family members, and social acquaintances, by falsely promising their money would be invested in risk-free investments, subscription agreements, and loans. According to allegations in the indictment, Charlebois fraudulently asserted in the investment agreements presented to victim investors that he and his entities held stock options for particular companies, and that the investors could purchase the options and gain specified profits.
Contrary to Charlebois’s claims, instead of using the investors’ money as promised, Charlebois allegedly used the funds to make Ponzi-style payments to other investors, and on personal expenses including private school tuition, mortgage payments, luxury travel and meals at restaurants.
Charlebois was released on bond following his court appearance. He faces a maximum of 20 years in prison and a $250,000 fine for the wire fraud charge, and 10 years in prison and a $250,000 fine for each of the six money laundering counts, if convicted.
The details contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and USPIS investigated the case. The prosecution is being handled by Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
Virginia Man Convicted for Investment SchemeRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte has convicted Michael Mandel Baldwin, 53, of Alexandria, Virginia, for orchestrating an investment scheme that defrauded victims of more than $800,000, 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, joins U.S. Attorney King in making today’s announcement.
“Baldwin’s Miracle Mansion was a house of lies,” said U.S. Attorney King in announcing the guilty verdict. “Using Biblical themes and empty promises to cover up the fraud, Baldwin engaged in an extensive scheme that caused significant monetary losses to his victims. My office is committed to uncovering investment fraud and ensuring that perpetrators like Baldwin face the criminal justice system.”
According to trial evidence and witness testimony, from 2009 to October 2021, Baldwin served as an Assistant Pastor and Musical Director for a church in Northern Virginia, and Chief Executive Officer of the Miracle Mansion, LLC (Miracle Mansion). As evidence established, over the course of the scheme, Baldwin made numerous fraudulent representations to victim-investors about the viability, legitimacy, and success of Miracle Mansion, and solicited investments from a Charlotte-area church and its members, as well as individuals and entities located throughout the United States, including in Virginia, Arkansas, Florida, and Georgia.
According to evidence presented at trial, as part of the fraudulent investment scheme, Baldwin created and distributed promotional materials to potential investors that described Miracle Mansion as “a one-of-a-kind entertainment complex that [would] reshape the face of family entertainment in the Washington Metropolitan region,” with a mission that “promotes family-focused inspiration, entertainment and enrichment anchored by a Biblical worldview.” In furtherance of the fraud, Baldwin also held in-person and virtual meetings with potential investors, during which he falsely claimed the investors’ money would be used to develop, create and construct Miracle Mansion, including to purchase the land on which Miracle Mansion would be located.
According to witness testimony, in furtherance of the scheme, Baldwin presented to investors several investment opportunities, including “GroundSwell 73,” which was described as “73 acres = 7,300 people, investing $73 per month, for 73 months.” Baldwin also represented to potential investors that The Kennedy Center and high-level executives at Hobby Lobby and Chick-Fil-A had endorsed and supported Miracle Mansion. Contrary to Baldwin’s claims, high-level executives with Hobby Lobby and Chick-Fil-A testified at trial that they neither knew nor supported Baldwin and his project.
Rather than using the victims’ money to create, develop and construct Miracle Mansion as promised, trial evidence established that Baldwin spent hundreds of thousands of dollars on his personal lifestyle, including to pay for personal expenses, travel, and meals at restaurants, and to make credit card payments and cash withdrawals. He also used a portion of the victims’ money to pay others involved in Miracle Mansion, and to make Ponzi style payments to some of the investors.
The federal jury convicted Baldwin of wire fraud, which carries a maximum prison term of 20 years and a $250,000 fine, and securities fraud, which carries a maximum prison term of 20 years and a $5 million fine. Baldwin is currently released on bond. A sentencing date has not been set.
In making today’s announcement U.S. Attorney King thanked the U.S. Secret Service for leading the investigation.
Assistant U.S. Attorneys Caryn Finley and Kenneth Smith of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Tax Attorneys and Insurance Agent Indicted for Promoting and Selling Fraudulent Tax ShelterRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that a federal grand jury in Charlotte returned an indictment today charging two tax attorneys and an insurance agent with conspiring to defraud the United States and helping clients file false tax returns based on their promotion and operation of a fraudulent tax shelter.
U.S. Attorney King is joined in making today’s announcement by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI).
According to the indictment, from 2011 to the present Michael Elliott Kohn and Catherine Elizabeth Chollet, both attorneys and residents of St. Louis, Missouri, and David Shane Simmons, a licensed insurance agent and broker based out of Jefferson, North Carolina, conspired to defraud the United States by promoting, marketing, and selling to clients a fraudulent tax scheme known as the Gain Elimination Plan (“GEP”). The defendants allegedly designed the GEP to conceal clients’ income from the IRS by fraudulently inflating business expenses through fictitious royalties and management fees. These fictitious royalties and management fees allegedly were paid, on paper, to a limited partnership largely owned by a charitable organization. In reality, Kohn and Chollet allegedly fabricated the royalties and management fees. In total, the defendants allegedly caused a tax loss to the IRS of tens of millions of dollars.
The indictment further alleges that Kohn and Simmons engaged in a scheme to defraud an insurance company by providing false information on insurance applications on behalf of their clients. The false information allegedly included fraudulent representations concerning the clients’ financials and the purpose of the insurance policies. In total, Kohn and Simmons allegedly caused the insurance company to issue more than $200 million in insurance policies based on false application information. Simmons allegedly earned large commissions for selling the insurance policies, many of which he split with Kohn and Chollet. Simmons also allegedly filed false personal tax returns by underreporting his business income and inflating his business expenses.
If convicted, Kohn, Chollet, and Simmons each face a maximum sentence of five years in prison for conspiring to defraud the United States and three years in prison for each of multiple counts of aiding and assisting in the preparation of false tax returns. Kohn and Simmons both also face a maximum sentence of 20 years in prison for wire fraud, and Simmons faces a maximum sentence of three years in prison for several counts of filing false personal tax returns, if convicted. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
IRS-Criminal Investigation is investigating the case.
Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte and Trial Attorneys Kevin Schneider and Todd Ellinwood of the Tax Division are prosecuting the case.
Florida Man Is Convicted of Drug Trafficking and Firearms OffensesRead the Press Release
ASHEVILLE, N.C. – A federal jury in Asheville has convicted Jorge Luis Perez, 36, of Wimauma, Florida, of drug trafficking and firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger presided over the three-day trial which ended today.
According to court documents, witness testimony and evidence presented at trial, in May 2020, law enforcement conducted a traffic stop of a vehicle Perez was driving in Jackson County, North Carolina. Over the course of the traffic stop, law enforcement located a trafficking quantity of methamphetamine and a loaded firearm in the vehicle. Law enforcement also found more than $10,000 in cash on Perez’s person. Trial evidence further established that, in July 2020, law enforcement conducted another traffic stop of a vehicle Perez was driving in Swain County, North Carolina. Over the course of that traffic stop, law enforcement located an even larger trafficking quantity of methamphetamine and set of digital scales in the vehicle. A search of Perez’s trailer later that day led to the seizure of additional evidence to include methamphetamine, multiple firearms, and a money counter.
A federal jury convicted Perez of two counts of possession with intent to distribute methamphetamine – one carrying a statutory maximum penalty of 20 years in prison and one carrying a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison; and possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory minimum penalty of five years in prison. Perez remains in custody. A sentencing date has not been set.
This effort 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, the Jackson County Sheriff’s Office, the Swain County Sheriff’s Office, and the Hillsborough County Sheriff’s Office in Florida for their coordination and investigation of the case.
Assistant United States Attorney Thomas Kent and Special Assistant U.S. Attorney (SAUSA) Annabelle Chambers, of the U.S. Attorney’s Office are prosecuting the case. Ms. Chambers is a state prosecutor with the office of the 43rd Prosecutorial District and was assigned by District Attorney Ashley Welch to serve as SAUSA with the U.S. Attorney’s Office in Asheville. Ms. Chambers is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 43rd Prosecutorial District and the United States Attorney’s Office. The SAUSA position helps ensure the effective and vigorous prosecution of federal court cases that impact the counties within the 43rd Prosecutorial District.
Federal Judge Sentences Supplier of Methamphetamine Trafficking Ring to 17 ½ Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Jonathan Corey Daniel, 33, of Monroe, Georgia, was sentenced today by U.S. District Judge Kenneth D. Bell to 210 months in prison and five years of supervised release for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In July 2021, Daniel pleaded guilty to methamphetamine trafficking conspiracy and possession with intent to distribute methamphetamine and aiding and abetting.
According to filed court documents and statements made in court, Daniel was a supplier with a drug ring that trafficked methamphetamine from Georgia into Western North Carolina. From 2018 to April 2019, while Daniel was incarcerated in Georgia, he arranged the distribution of large amounts of methamphetamine to a drug network that distributed methamphetamine in Catawba, Lincoln, Caldwell, and Alexander Counties and elsewhere. Court records show that Daniel used a contraband cell phone to communicate with his co-conspirators and to coordinate the drug distribution. Over the course of the investigation, law enforcement seized narcotics, at least 23 firearms, and more than $250,000 in drug proceeds.
Thirteen defendants were previously sentenced for their involvement:
- Michael James Notheisen, 36, of Vale, N.C., was sentenced to 240 months in prison and five years of supervised release.
- James Kristoffer Cantley, 40, of Newton, N.C. was sentenced to 210 months in prison and five years of supervised release.
- Tiffany Christmas Hirani, 35, of Monroe, Georgia, was sentenced to 210 months in prison and five years of supervised release.
- Aaron Douglas Goodson, 32, of Lincolnton, N.C., was sentenced to 210 months in prison and five years of supervised release.
- Brian Duane Martz, 43, was sentenced to 191 months in prison and five years of supervised release.
- Priscilla Chapman Lambert, 36, of Hickory, N.C., was sentenced to 151 months in prison and five years of supervised release.
- Thomas Dewayne Simmons, Jr., 36, of Monroe, Georgia, was sentenced to 150 months in prison and five years of supervised release.
- Ruth Marie Duggar, 39, of Claremont, N.C., was sentenced to 132 months in prison and five years of supervised release.
- Lowell Thomas Messer, 45, of Newton, N.C., was sentenced to 120 months in prison and five years of supervised release.
- Samantha Jean Taylor, 27, of Newton, N.C., was sentenced to 120 months in prison and five years of supervised release.
- Kimberly Deann Bumgarner, 58, of Granite Falls, N.C., was sentenced to 60 months in prison and two years of supervised release.
- Cynthia Roxanne Shook, 37, of Conover, N.C., was sentenced to 60 months in prison and two years of supervised release.
- Jason Keith Reichard, 40, of Ridgecrest, N.C., was sentenced to 36 months in prison and three years of supervised release.
In making today’s announcement U.S. Attorney King thanked the following agencies for their investigative efforts which led to federal charges: the DEA in Charlotte, Asheville, and Atlanta; the North Carolina State Bureau of Investigation; the North Carolina State Highway Patrol; the Catawba County Sheriff’s Office; the Newton Police Department; the Conover Police Department; the Maiden Police Department; the Hickory Police Department; the Longview Police Department; the Caldwell County Sheriff’s Office; the Granite Falls Police Department; the Lincoln County Sheriff’s Office; the Cleveland County Sheriff’s Office; the Huntersville Police Department; the Cornelius Police Department; the Mint Hill Police Department; the Pineville Police Department; the Charlotte Mecklenburg Police Department; the Monroe Police Department; the Taylorsville Police Department; the Gaston County Police Department; the Georgia Highway Patrol; the Franklin County Sheriff’s Office in Georgia; the Georgia Bureau of Investigation; the Georgia Department of Corrections; the Clayton County Sheriff’s Office in Georgia; and the Commerce Police Department in Georgia.
Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
California Man Extradited from Australia to Face Charges for Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Gustavo Guzman, 59, previously of Fullerton, Calif., made his initial appearance in federal court in Charlotte today following his extradition from Australia, to face wire fraud, securities fraud and transactional money laundering charges related to an alleged $2 million investment fraud scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and North Carolina Secretary of State Elaine F. Marshall join U.S. Attorney King in making the announcement.
According to allegations contained in the indictment, from April 2010 to August 2015, Guzman, through various entities he controlled, including G2 Asset Management and East Egg Private Equity, executed a scheme to defraud approximately 10 investors of at least $2 million, by falsely representing that he would use the investors’ money to trade in options and other similar investments. Instead of investing the funds as promised, Guzman allegedly stole a substantial portion of the investors’ money and used it to fund his personal lifestyle, including to make large credit card payments and cash withdrawals, and to pay for personal expenditures. As alleged in the indictment, Guzman suffered massive trading losses with the money that he did invest and used some of the victim’s money to make Ponzi-style payments to investors. To conceal the trading losses and the fraudulent scheme, and to prevent his victims from redeeming their investments and complaining to authorities, the indictment alleges that Guzman lied to his victims about the status of their investments, and provided them with fake documents, including sham IRS forms and fraudulent account statements.
Guzman is currently in federal custody. The wire fraud charge carries a sentence of up to 20 years in prison and a $250,000 fine. The securities fraud charge carries a statutory sentence of up to 20 years in prison and a $5 million fine, and the transactional money laundering charge carries a penalty of up to 10 years in prison and a fine of up to $250,000 or not more than twice the amount of the criminally derived property involved in the transaction.
The charges contained in the indictment are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
The investigation was conducted by the FBI in Charlotte and the Securities Division of the North Carolina Department of the Secretary of State. The U.S. Securities and Exchange Commission conducted a parallel investigation that resulted in the entry of a default judgment against Guzman in Civil Action No. 3:17-cv-00276 (WDNC). The Department of Justice also appreciates the significant assistance provided by the United States Marshals Service, the Justice Department’s Office of International Affairs, the Government of Australia, including the Attorney General’s Department of Australia and the Australian Federal Police, in securing the extradition of Guzman and obtaining evidence from Australian authorities.
Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Taylorsville, N.C. Woman Is Sentenced to Eight Years in Prison for Embezzling More Than $15 Million from Former EmployerRead the Press Release
CHARLOTTE, N.C. – Donna Osowitt Steele, 53, of Taylorsville, N.C., was sentenced today to eight years in prison for embezzling more than $15 million from her former employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also ordered Steele to serve three years under court supervision after she completes her prison term and to pay $17,189.748.26 in restitution. Steele previously pleaded guilty to wire fraud in connection with the scheme.
Michael C. Scherck, Acting 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 court documents and today’s sentencing hearing, from 2013 to January 2020, Steele executed an extensive scheme to defraud her employer, identified in court documents as Victim Company A, a privately held U.S.-based subsidiary of a foreign company that manufactures carbide products. Steele began working for Victim Company A’s shipping department in 1999. Over the next 20 years, Steele was promoted to various positions within the company, including to the position of Chief Executive Officer (CEO), which she held until she was terminated in January 2020.
Court records show that, while serving as Vice President and later as CEO, Steele used her positions to embezzle funds from Victim Company A in a number of ways, including through fraudulent company credit card purchases, company checks, Quickbooks transactions, and wire transfers. For example, Steele used company credit cards to pay for $6 million in personal expenditures, including to make high-end retail store purchases, to pay for a family wedding, and to make purchases related to Opulence by Steele, a luxury clothing and boutique company owned by the defendant. Steele also issued and caused to be issued to herself approximately 98 checks totaling more than $2.8 million from Victim Company A’s bank accounts, which Steele deposited into her personal bank account. Furthermore, Steele caused 127 fraudulent and unauthorized wire transfers to be executed as Quickbooks transactions, transferring more than $4.7 million from Victim Company A’s bank accounts to her personal bank account. During the same time period, Steele executed at least 117 fraudulent and unauthorized bank wires, totaling more than $2.2 million, from Victim Company A’s bank accounts to her personal bank account, which she then used for her personal benefit, including to fund a personal real estate closing.
According to court documents, over the course of the scheme, Steele embezzled more than $15 million from Victim Company A. As a result of Steele’s embezzlement, Victim Company A experienced several difficulties, including vendors withholding products from the company for non-payment or late payments, employees not being paid on time, and/or employees having their insurance cancelled without warning. Court records show that, in an effort to hide the fraudulent scheme, Steele limited communications and interactions between the employees and the owners of Victim Company A. Steele also convinced employees that company owners should be feared and lied to employees about the true nature of Victim Company A’s financial trouble.
On January 12, 2022, Steele pleaded guilty to wire fraud. She is currently released on bond and 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 the FBI for their investigation of the case.
Assistant United States Attorney Maria Vento of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Robber Is Sentenced to 10 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – A Charlotte man who robbed three businesses was sentenced to 120 months in prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Kenneth D. Bell also ordered John Paul Gaddy, 35, to serve three years of supervised release after he is released from prison.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Chief Bence Hoyle of the Huntersville Police Department, and Chief Josh Watson of the Troutman Police Department join U.S. Attorney King in making today’s announcement.
According to court documents and today’s sentencing hearing, between March and April 2021, Gaddy used a BB gun to rob three businesses. On March 12, 2021, Gaddy robbed the Lucia Food Mart located at 104 Killian Road in Stanley, North Carolina, followed by another robbery on April 25, 2021, of the Fast Phil’s convenience store located at 502 Gilead Road in Huntersville, North Carolina. Court records show that, during the second robbery, Gaddy pointed a BB gun at the clerk, giving her the impression that it was real gun, ordered the clerk to back up, and then grabbed cash from the register. The third robbery occurred three days later, on April 28, 2021. According to court records, Gaddy entered a Dollar Tree store located at 611 N. Main St. in Troutman, North Carolina. As with the previous robbery, Gaddy pointed the BB gun at the clerk, who thought it was a real gun, and said, “If you don’t put all of your money in the bag, I’m going to kill you.” As the clerk attempted to escape, Gaddy grabbed the entire cash register drawer and left the store.
On May 4, 2021, a Charlotte Mecklenburg Police Department (CMPD) officer conducted a traffic stop of a vehicle in which Gaddy was the passenger. Over the course of the traffic stop, Gaddy resisted arrest and fought with CMPD officers before he was detained.
On June 7, 2022, Gaddy pleaded guilty to Hobbs Act robbery. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prison upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended the FBI, the Huntersville Police Department, and the Troutman Police Department for their investigation of the case, and thanked CMPD for their invaluable assistance.
Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Raleigh Man Is Sentenced to More Than 12 Years for Armed RobberyRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Marvin Maurice Williams, 54, of Raleigh, North Carolina, to 151 months in prison followed by three years of supervised release for an armed robbery offense, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Bence Hoyle of the Huntersville Police Department join U.S. Attorney King in making today’s announcement.
According to filed documents and statements made in court, on September 7, 2021, at approximately 8:00 a.m., Williams entered the Valero gas station located at 502 Gilead Road in Huntersville, N.C. Upon entering, Williams approached the cashier and asked to buy cigarettes. When the cashier turned around Williams brandished a firearm. Court records show that, while brandishing the firearm, Williams went behind the counter, grabbed the cashier by her shirt collar and forced her to the back office. Williams then ordered the cashier to hand over the store’s cash. When the cashier replied that the money was located at the front of the store in a deposit bag, Williams forced the cashier back to the front of the gas station. The defendant then grabbed the deposit bag and fled the scene in his vehicle. According to court documents, the cashier and another individual who observed the robbery in progress called 911 to report the incident. Officers located Williams’s vehicle and he was arrested shortly thereafter. Over the course of the arrest, law enforcement also located the firearm Williams had brandished during the robbery on the vehicle’s front passenger seat.
On March 1, 2022, Williams pleaded guilty to Hobbs Act robbery. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prison upon designation of a federal facility.
The FBI and the Huntersville Police Department investigated the case.
Assistant U.S. Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Jury Convicts Catawba Co. Man of Bank Robbery, COVID-19 Fraud, and Aggravated Identity TheftRead the Press Release
STATESVILLE, N.C. – A federal grand jury sitting in Statesville has convicted Spenc’r Denard Rickerson, 35, of Claremont, N.C., of bank robbery, wire fraud, and aggravated identity theft, 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 today.
U.S. Attorney King is joined in making today’s announcement by Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to court documents, witness testimony and evidence presented at trial, between June 30, 2020, and March 20, 2021, Rickerson used false information to apply for a Paycheck Protection Program (PPP) loan and multiple Economic Injury Disaster Loans (EIDL) guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Trial evidence established that, in order to obtain the PPP loan, Rickerson submitted a fraudulent application for a non-existent company that contained a number of false information, including the purpose of the loan and the company’s payroll costs. Rickerson also submitted fraudulent applications for several loans under the EIDL program, in which he provided fake information about the number of company employees and gross revenues. According to trial evidence, as a result of the fraudulent PPP and EIDL loan applications, Rickerson allegedly received over $84,233 in fraudulent funds intended to assist businesses impacted by the coronavirus pandemic.
According to evidence presented at trial, in addition to the fraudulent loan scheme, on March 18, 2021, Rickerson committed an armed robbery of a BB&T Bank located at 12 North Main Avenue, in Newton, N.C. Rickerson used the stolen funds from the fraudulent loan scheme and the bank robbery to pay bills and to buy cryptocurrency.
Rickerson remains free on bond. The maximum statutory penalty for the bank robbery offense is 25 years in prison and a $250,000 fine. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The aggravated identity theft charge carries a mandatory two-year prison term consecutive to any other prison term imposed. A sentencing date has not been set.
The FBI in Charlotte investigated the case. Assistant U.S. Attorneys Lambert Guinn and Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
To report suspected COVID-19 fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed by the NCDF and referred to federal, state, local or international law enforcement or regulatory agencies for investigation. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
U.S. Attorney's Office Recognizes Federal, State, and Local Law Enforcement for Outstanding AchievementsRead the Press Release
CHARLOTTE, N.C. – Today, U.S. Attorney Dena J. King hosted the Western District’s Excellence in the Pursuit of Justice award ceremony, to recognize law enforcement personnel from local, state and
federal law enforcement agencies for their significant contributions to the mission of the Department of Justice, and for their commitment to protecting the people of the Western District of North Carolina.
“It is an honor to recognize the remarkable men and women in law enforcement for going above and beyond the call of duty to protect our communities and to hold wrongdoers accountable for their actions,” said U.S. Attorney King. “A career in law enforcement is not for the faint of heart. Those who wear the badge understand what it means to live a life of service, despite the significant dangers and challenges that come with the job. I congratulate the recipients for this well-deserved recognition. I am grateful for their outstanding efforts to ensure public safety and for serving the people of the Western District of North Carolina with integrity and excellence.”
The following law enforcement professionals were recognized in the Outstanding Case category, for their work as an investigative team and their exemplary performance in cases handled by the U.S. Attorney’s Office:
United States v. Rodney Allison
Johnathan R. Austin - Buncombe County Sheriff’s Office/DEA
Nathan Ball – Buncombe County Sheriff’s Office
Michael W.C. Beam – DEA
Melody J. Cox – HIDTA/DEA
Sonia Escobedo – Asheville Police Department/DEA
Andrew N. Fournier – Asheville Police Department
Brett L. Foust – Asheville Police Department
Steven Hendricks – Asheville Police Department
Brett T. Maltby - Asheville Police Department
Christopher M. Plowucha – Buncombe County Sheriff’s Office
Organized Crime Drug Enforcement Task Force (OCDETF) Operation “COVID CHAOS”
Nathan DeWeese – Haywood County Sheriff’s Office
Christopher B. Green – ATF
Brian A. Leopard – Swain County Sheriff’s Office/DEA
Mark Mease – Haywood County Sheriff’s Office
Micah P. Phillips – Haywood County Sheriff’s Office/ATF
Michael J. Reagan – Haywood County Sheriff’s Office/DEA
Andrew G. Scripture – DEA
Jay Stoller – Haywood County Sheriff’s Office
Alan C. Townsend – ATF
United States v. Shane Swimmer
Travis Brooks – Cherokee Indian Police Department
Daniel S. Iadonisi - Cherokee Indian Police Department
Mary Lambert – Cherokee Indian Police Department
Eugene J. Vinson – FBI
United States v. Michael Moore
Alvis E. Bergs –HSI
Andrew J. Greer - HSI
Illegal Firearms Interdiction
Seth M. Berger – ATF
Andrew J. Collier – Federal Air Marshal Service
Kelly M. Harrison – HSI
Christopher C. McMaster – FBI
United States v. Elijah Gorla
Jacob R. Guffey – FBI
William S. Hairston, Jr. – ATF
Rebecca T. Russell – Watauga County Sheriff’s Office
The following law enforcement professionals were recognized in the Outstanding Team Performance category:
Queen City Regional Border Enforcement Security Taskforce – “QCR-BEST”
Ronald Bollinger – North Carolina Department of Public Safety/HSI
Stephen Brown – Charlotte Mecklenburg Police Department/HSI
Kirk Bynoe - Charlotte Mecklenburg Police Department/HSI
Jonathan Cerdan - Charlotte Mecklenburg Police Department/HSI
Daniel Johnson – Huntersville Police Department/HSI
Kyle Lang – Mint Hill Police Department/HSI
Daniel S. Leal – HSI
Michael E. Morizio – HSI
Kevin Osuch – Matthews Police Department/HSI
Courtney Roanhorse – HSI
Josh Smith – Stallings Police Department/HSI
The following recipients were selected to receive the Outstanding Individual Performance award for their exemplary contributions to multiple cases prosecuted by the U.S. Attorney’s Office:
Randy Berkland – United States Postal Inspection Service
Zackery T. Hagler – Charlotte Mecklenburg Police Department/FBI
Christopher P. Morgan – DEA
Jason D. Whitt – FBI
This year, the U.S. Attorney’s Office recognized Mr. Holrick L. Foster with the Outstanding Citizen Award for his contribution in a case prosecuted by the U.S. Attorney’s Office, and presented Adams Outdoor Advertising with the Outstanding Community Service award for partnering with the U.S. Attorney’s Office to promote the Office’s Think Again initiative.
U.S. Attorney King thanked the awardees for their distinctive efforts and their dedication to pursuing justice while working together to build public trust and keep our communities safe.
Honduran National Is Sentenced to 15 Years for Possession of A Firearm by an Illegal AlienRead the Press Release
CHARLOTTE, N.C. – Edin Anael Solis-Rodriguez, 23, a Honduran national residing in Charlotte, was sentenced to 15 in prison late yesterday, followed by three years of supervised release, for possession of two firearms by an illegal alien, 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 records and court proceedings, on August 28, 2020, CMPD officers responded to a call for service at a restaurant located on South Boulevard in Charlotte. Officers were told that restaurant employees had observed a male customer with a firearm in the back of this pants. CMPD officers found the customer, Solis-Rodriguez, at the bar and confirmed that he had a loaded firearm.
According to filed court documents, on the night of November 14, 2021, CMPD officers were dispatched to the Taco Bar restaurant, located at 6400 Old Pineville Road in Charlotte, in reference to a shooting. When CMPD officers arrived at the scene, they observed a male victim on the ground that had sustained multiple gunshot wounds. Over the course of the investigation, law enforcement determined that Solis-Rodriguez shot the victim. Law enforcement executed a search warrant at Solis-Rodriguez’s residence and found the firearm that Solis-Rodriguez used to shoot the victim.
On June 7, 2022, Solis-Rodriguez pleaded guilty to two counts of possession of a firearm by an illegal alien. Solis-Rodriguez has a prior criminal history for illegally entering the United States and he is not permitted to possess firearms or ammunition.
Solis-Rodriguez is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked ATF and CMPD for their investigation of the case.
Assistant U.S. Attorney Stephanie Spaugh, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charlotte Man Is Sentenced to Prison for CyberstalkingRead the Press Release
CHARLOTTE, N.C. – Amir Salvatore Khayyat, 29, of Charlotte, was sentenced today to 30 months in prison followed by three years of supervised release for cyberstalking and sending his victim harassing and threatening emails and voicemails, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Michael C. Scherck, Acting Special Agent in Charge of the FBI in North Carolina, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and the sentencing hearing, in 2017, Khayyat met the victim, identified in court documents as “Jane Doe.” Jane Doe is a licensed clinical psychologist and a credentialed mental health service provider, who met Khayyat in her professional capacity. Court records show that, from April 2019 to October 2020, Khayyat engaged in an extensive cyberstalking and threats campaign targeting Jane Doe, sending the victim hundreds of harassing emails, including unsolicited sexual imagery, from multiple email addresses, and left numerous harassing voicemails on Jane Doe’s office phone line. Many of the harassing emails and voicemails contained express or implicit threats to harm Jane Doe and law enforcement officers. Khayyat continued to harass and threaten Jane Doe even after she obtained a state court order forbidding Khayyat from communicating with her.
On May 23, 2022, Khayyat pleaded guilty to cyberstalking and making interstate threats. 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 FBI for their investigation of the case and the Charlotte-Mecklenburg Police Department for their invaluable assistance.
Assistant United States Attorney Matthew Warren, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
California Man Is Sentenced to 24 Years for Trafficking 33+ Kilograms of Methamphetamine and 3+ Kilograms of FentanylRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad Jr. sentenced Juan Octavio Iribe Laveaga, 35, of Norwalk, California, to 292 months in prison followed by five years of supervised release for trafficking large quantities of methamphetamine and fentanyl, 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 Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, investigators identified Laveaga as a California-based trafficker, in charge of a drug trafficking organization (DTO) responsible for distributing multiple kilograms of methamphetamine from California into North Carolina. Court records show that agents working in an undercover capacity made arrangements to purchase multiple kilograms of methamphetamine from Laveaga’s DTO. During the investigation, Laveaga’s couriers transported approximately 20 kilograms of methamphetamine from California to the Charlotte area. On other occasions, Laveaga’s DTO mailed packages containing methamphetamine from California. After seizing approximately 23 kilograms of methamphetamine from Laveaga’s DTO during the investigation, in February 2022, agents arrested Laveaga and executed a search warrant at his residence in California, seizing an additional 10 kilograms of methamphetamine, nearly four kilograms of fentanyl, and two firearms.
On May 9, 2022, Laveaga pleaded guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine and aiding and abetting.
Laveaga is in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney King thanked the DEA, the Charlotte-Mecklenburg Police Department, and the Riverside County (California) Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Taylor G. Stout of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Husband and Wife Are Sentenced to Prison for Stealing $200,000 from A High School Booster ClubRead the Press Release
CHARLOTTE, N.C. – The former president of a Charlotte high school Booster Club and his wife were sentenced to prison today for stealing more than $239,000 from the organization. The husband was also sentenced for obtaining over $236,000 in COVID-19 relief funds to cover up the theft, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Anthony Sharper, 42, was sentenced to 30 months in prison followed by two years of supervised release. He was also ordered to pay a money judgement of $310,832.80. Deana Sharper, 47, also of Charlotte, was ordered to serve 21 months in prison and two years of supervised release and was ordered to pay a money judgment of $239,742.80.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte, 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 filed court documents and today’s sentencing hearing between 2017 and June 2020, Anthony Sharper and Deana Sharper executed a scheme to defraud and embezzle at least $239,000 from a Charlotte-area high school Athletic Booster Club by writing checks to themselves for purported reimbursement, wiring funds directly to their personal bank account, and using the Booster Club’s debit cards and credit card to pay for personal expenditures. Court documents show that, Anthony Sharper, who is a certified public accountant, also committed tax fraud by failing to report any of the embezzled funds on the couple’s joint 2018 and 2019 tax returns filed with the IRS.
According to court records, to cover up the theft and to enrich himself, between March and May 2020, Anthony Sharper submitted three fraudulent applications for federal COVID-19 relief funds, including two fraudulent Paycheck Protection Program (PPP) loan applications, one in the name of the Booster Club and one in the name of his accounting firm, A. Sharper CPA, PLLC, and an Economic Injury Disaster Loan (EIDL) application to the Small Business Administration (SBA) on behalf of his CPA firm. All three applications contained false information, including fake revenues and fake payroll and employment data. As a result of the fraudulent applications, Anthony Sharper obtained more than $236,000 in COVID-19 relief funds intended for existing businesses harmed by the coronavirus pandemic. After receiving the loan proceeds, Anthony Sharper used the funds to pay for personal expenditures and to cover up the couple’s theft of the Booster Club’s funds.
Anthony Sharper previously pleaded guilty to wire fraud, making a false statement to a financial institution, engaging in monetary transactions in criminally derived property, and tax fraud. Deana Sharper pleaded guilty to wire fraud. Both defendants were released on bond and will be ordered to report to the federal Bureau of Prisons to begin serving their sentence upon designation of a federal facility.
The FBI, USPIS, and IRS-CI investigated the case. The prosecution is handled by Assistant United States Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
Three Indicted for $1 Million COVID-19 Relief FraudRead the Press Release
CHARLOTTE, N.C. – A federal grand jury in Charlotte has indicted three individuals for conspiring to fraudulently obtain more than $1 million in COVID-19 relief funds administered by the Small Business Administration (SBA) through the Paycheck Protection Program (PPP), announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, and Mark H. Morini, Special Agent in Charge of the Treasury Inspector General for Tax Administration (TIGTA), Southeast Field Division, join U.S. Attorney King in making today’s announcement.
According to allegations in the federal indictment, between March and November 2021, Tamakia Elizabeth Harris, 43, Shavondra Michelle White, 39, and Cedric Lee Benton, 47, all of Charlotte, conspired with each other to fraudulently obtain more than $1 million in COVID-19 relief funds, by submitting fraudulent PPP loan applications to financial servicing companies outside North Carolina. The indictment alleges that the PPP loan applications contained false and misleading information and fraudulent supporting documentation, including fake federal tax filings and payroll reports.
As alleged in the indictment, Harris, who was employed by a nationally chartered bank in Charlotte, generally charged fees between $2,000 and $5,000 for her assistance in filing false and fraudulent PPP loans. Harris allegedly created counterfeit IRS forms for nonexistent businesses and inflated income to qualify the borrower for the highest amount of PPP loan. Harris then allegedly submitted the fraudulent PPP loan applications and supporting documents to the financial servicing companies. The indictment alleges that, in total, Harris assisted in creating and submitting over 30 fraudulent PPP loan applications totaling more than $900,000.
According to allegations in the indictment, White, who was also employed by a nationally chartered bank in Charlotte, electronically filed two PPP loans in her own name using forged and fictitious federal income tax documents prepared by Harris. arris The indictment alleges that White, Benton, and another individual received more than $100,000 in PPP loans that they were not entitled to receive.
The indictment further alleges that Benton, who is White’s boyfriend and has a prior criminal conviction, also submitted two fraudulent PPP loan applications with fictitious and forged IRS forms, or income he purportedly lost while in the custody of the Bureau of Prisons (BOP).
The defendants are each charged with one count of wire fraud conspiracy, which carries a maximum penalty of 20 years in prison. One or more of the defendants are also charged in 16 separate counts of wire fraud – each relating to a specific PPP loan – which also carry a maximum penalty of 20 years in prison per count.
The charges in the indictment are allegations. The defendants are 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 USPIS and TIGTA for their investigation of this case.
Assistant U.S. Attorney Michael E. Savage, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
Charlotte Man Found of Robbing Area BusinessesRead the Press Release
CHARLOTTE, N.C. – A federal jury returned a guilty verdict late yesterday against John Henry Moore, 59, of Charlotte, for the robbery of two area businesses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad Jr. presided over the two-day trial, which ended on Tuesday.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents and evidence presented at trial, on December 1, 2018, Moore robbed a Spectrum store located at 2222 South Boulevard, in Charlotte. Trial evidence established that Moore entered the store at approximately 8:00 p.m. and brandished a firearm to employees who were working at the time. Moore then ordered the employees to hand over cash from the registers and Moore fled the scene. Trial evidence established that Moore left behind an umbrella which he had used to prop the door open during the robbery. That umbrella was later tested by the FBI and found to contain DNA which was a match to Moore’s DNA.
According to trial evidence and witness testimony, on December 10, 2018, Moore returned to the same area and robbed the Publix Super Market also located at 2222 South Boulevard, in Charlotte. Trial evidence shows that Moore walked into the store, approached a store employee and demanded cash. During the robbery, Moore kept his hand in his pocket and threatened the employee, warning the victim to not “get shot.” The employee handed Moore cash and Moore fled the scene.
According to trial evidence, law enforcement identified Moore as the person who committed the two robberies. On December 12, 2018, law enforcement executed a search warrant at Moore’s residence, seizing a loaded firearm with an obliterated serial number and clothing that matched the description of the items Moore wore during the robberies. Over the course of the investigation, law enforcement determined that Moore had previously robbed two banks in Georgia and South Carolina and was on supervised release for those convictions when he carried out the robberies in Charlotte. As a convicted felon, Moore is prohibited to own a firearm or ammunition.
The jury convicted Moore of two counts of Hobbs Act robbery, possession of a firearm in furtherance of a crime of violence, and possession of a firearm by a convicted felon. Moore remains in federal custody. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King thanked the FBI and CMPD for their investigation of the case.
Assistant U.S. Attorneys Lawrence Cameron and Lambert Guinn of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
U.S. Attorney's Office Announces Election Day ProgramRead the Press Release
CHARLOTTE, N.C. – United States Attorney Dena J. King announced today that Assistant United States Attorneys (AUSAs) Michael Savage in Charlotte, and Don Gast in Asheville, will lead the efforts of their Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election.
AUSAs Michael Savage and Don Gast have been appointed to serve as the District Election Officers (DEOs) for the Western District of North Carolina, and, in that capacity, they are responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington, D.C.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney King. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
U.S. Attorney King stated that, “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice.”
In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSAs/DEOs Savage and Gast will be on duty in this District while the polls are open. AUSA Savage can be reached by the public in Charlotte at 704-344-6222, and AUSA Gast can be reached in Asheville at 828-271-4661.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 704-672-6100.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, D.C. by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
U.S. Attorney King said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
U.S. Attorney's Office for the Western District of North Carolina Observes Domestic Violence Awareness MonthRead the Press Release
CHARLOTTE, N.C. - U.S. Attorney Dena J. King joins the U.S. Department of Justice, the Office on Violence Against Women (OVW), community organizations, and law enforcement partners in observing October as Domestic Violence Awareness Month (DVAM).
Domestic violence is a pattern of abusive behavior in any relationship, used by one partner to gain or maintain power and control over another intimate partner. According to OVW, domestic violence can happen to anyone regardless of race, age, sexual orientation, religion, sex, or gender identity. Domestic violence affects people of all socioeconomic backgrounds and educational levels and occurs in both opposite-sex and same-sex relationships. It can also happen to intimate partners who are married, living together, dating or share a child.
Speaking this morning in Asheville at Helpmate’s Inc.’s annual domestic violence awareness event, U.S. Attorney King addressed an audience of more than 300 service providers and victim advocates, business leaders, community members, and law enforcement partners about the pervasiveness of domestic violence, and expressed her gratitude to the individuals and organizations that offer services, critical care, and protection to victims and survivors of domestic abuse.
“We have a shared responsibility to combat all forms of domestic violence and use all the tools at our disposal to ensure that victims and survivors have a viable path to safety and justice,” said U.S. Attorney King. “The U.S. Attorney’s Office is committed to holding accountable domestic violence offenders who violate federal firearms laws, and enhancing victims’ and survivors’ access to justice by providing much-needed federal resources to organizations that work with individuals and families who have experienced domestic abuse.”
Today, U.S. Attorney King also announced the allocation of more than $2.8 million in federal grants to Safe Alliance, Inc. and Safelight, Inc., two non-profit organizations in the Western District of North Carolina. The federal grants will be used to fund existing projects and new initiatives developed to prevent domestic violence and to support victims and survivors who have experienced domestic violence, dating violence, stalking and sexual assault.
“The deployment of much-needed resources through federal grants is critical in our mission to support community organizations that combat domestic violence and assist victims, survivors, and their families as they recover and rebuild their lives,” said U.S. Attorney King. “The grant awards will be used to improve access to legal services, expand economic support for survivors in underserved communities, and provide training and technical assistance for professionals who work with survivors every day.”
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
IF YOU ARE IN IMMEDIATE DANGER, CALL 911
You can also find local help here or by calling the national hotline:
National Domestic Violence Hotline
1-800-799-SAFE (7233)
1-800-787-3224 (TTY)
Advocates are available 24/7
National Center for Victims of Crime
1-855-4-VICTIM (1-855-484-2846)
Homeland Security Investigations Recognizes Asheville Federal Prosecutor for Her Work Combating Child ExploitationRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Dena J. King announced today that Homeland Security Investigations (HSI) has awarded Assistant U.S. Attorney (AUSA) Alexis I. Solheim the agency’s “Assistant U.S. Attorney of the Year” award, for her exemplary work in child exploitation cases investigated and prosecuted in the Western District of North Carolina. HSI’s recognition ceremony was held on Friday, October 7, 2022.
“The protection of the most vulnerable among us is a priority for my Office and the Justice Department,” said U.S. Attorney King. “AUSA Solheim is tasked with bringing to justice individuals who harm innocent children, which are often some of the most difficult and challenging cases handled by federal prosecutors. Through her legal work and advocacy, AUSA Solheim has demonstrated exemplary legal skill and professionalism, advocating for crime victims and holding offenders accountable for their actions. I am proud of AUSA Solheim’s achievement and I commend her for her legal successes and her work focusing on prevention and intervention.”
AUSA Solheim is a federal prosecutor in the Criminal Division of the U.S. Attorney’s Office in Asheville and serves as the Western District’s Project Safe Childhood Coordinator. In this capacity, AUSA Solheim is responsible for the investigation and prosecution of cases involving the sexual exploitation and abuse of minors. Launched by the Department of Justice in 2006, Project Safe Childhood is a nationwide initiative to combat the growing epidemic of child sexual abuse and exploitation. Led by the U.S. Attorneys’ Offices and the Justice Department’s 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.
The HSI award recognizes AUSA Solheim for her outstanding work in numerous federal criminal prosecutions involving the production, receipt and distribution of child pornography, “traveler” or enticement crimes, and online child exploitation cases, among others. In addition to prosecuting federal matters, as the District’s Project Safe Childhood Coordinator, AUSA Solheim conducts trainings of federal, state, and local law enforcement agencies on how to investigate and prosecute computer-facilitated crimes against children. AUSA Solheim also participates in community education programs, in order to raise awareness about the threat of online sexual predators and to provide the tools and information to children and parents on how to protect children and report possible violations.
AUSA Solheim began her career in public service in 2014, when she joined the U.S. Attorney’s Office as a Special Assistant U.S. Attorney (SAUSA), working on criminal and civil matters in federal court. Ms. Solheim then became an Assistant District Attorney in Buncombe County, where she prosecuted state criminal offenses. In 2018, Ms. Solheim returned to federal prosecution as a SAUSA with North Carolina’s 43rd Prosecutorial District until 2021, when she was hired to serve as an Assistant U.S. Attorney for the Western District of North Carolina.
AUSA Solheim received her undergraduate degree from the University of South Carolina and her law degree from the Campbell University School of Law.
Leaders of Poly-Drug Distribution Network Plead Guilty in Federal CourtRead the Press Release
CHARLOTTE, N.C. – Salvador Barrera, Jr., 27, and Ricardo Jonathan Gomez, 27, both of Charlotte, appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to possession with intent to distribute five kilograms or more of cocaine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed documents and statements made in court, Barrera and Gomez were leaders of a large drug trafficking organization (DTO) responsible for the distribution of substantial quantities of narcotics in Charlotte and surrounding areas. According to court documents, over the course of the multi-agency investigation into the DTO, law enforcement seized large quantities of narcotics, including approximately 328 kilograms of cocaine, 26 kilograms of fentanyl, and a kilogram of heroin. In addition to the narcotics, law enforcement seized approximately 60 firearms, 18 high capacity magazines, more than $2.4 million in cash drug proceeds, over $300,000 in jewelry, two residences, ten vehicles, a boat, and two tractor-trailers with hidden compartments for smuggling narcotics.
Barrera and Gomez are currently in federal custody. The drug trafficking charge to which they pleaded guilty carries a mandatory minimum sentence of 10 years and a maximum sentence of life in prison, and a fine of up to $10 million. A sentencing date for the defendants has not been set.
In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the Charlotte-Mecklenburg Police Department, the Mint Hill Police Department, the Cornelius Police Department, the Pineville Police Department, the Monroe Police Department, the Lincoln County Sheriff’s Office, the Catawba County Sheriff’s Office, the Cabarrus County Sheriff’s Office, the Salisbury Police Department, the Stanly County Sheriff’s Office, the Albemarle Police Department, the North Carolina State Highway Patrol, the Kansas Highway Patrol, the Anderson County (South Carolina) Sheriff’s Office, and the York County (South Carolina) Drug Enforcement Unit for their coordination and investigation of the case.
This effort 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.
Federal Jury Delivers Guilty Verdict Against Previously Convicted Drug TraffickerRead the Press Release
CHARLOTTE, N.C. – A Charlotte federal jury has convicted Lance Richardson Pagan, 52, of Gastonia, N.C., of possession with intent to distribute cocaine base and powder cocaine and possession of a firearm by convicted felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad Jr. presided over the two-day trial, which ended on Tuesday.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Travis Brittain of the Gastonia Police Department (GPD) join U.S. Attorney King in making today’s announcement.
According to filed court documents and evidence presented at trial, on January 12, 2022, law enforcement investigating Pagan’s drug distribution activities executed a search warrant at his residence. Trial evidence established that law enforcement seized from Pagan’s bedroom a trafficking amount of cocaine base and powder cocaine, and three handguns. Pagan was previously convicted of a federal drug trafficking offense and sentenced to seven years in prison. As a convicted felon, Pagan is prohibited from possessing a firearm.
Pagan is currently in federal custody. At sentencing, Pagan faces a sentence of up to 30 in prison. A sentencing date has not been set.
U.S. Attorney King credited today’s outcome to investigations led by the Western District’s OCDETF team, which have resulted in the conviction of more than 70 individuals, and the seizure of over 567 kilograms of cocaine, more than six kilograms of cocaine base, more than 17 kilograms of methamphetamine, more than four kilograms of heroin, over 30 kilograms of fentanyl, 127 firearms, and more $437,000 in cash and other property.
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 thanked the FBI and GPD. Assistant U.S. Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
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Iredell Health System Subsidiary Agrees to Pay over $130,000 to Resolve Allegations That It Improperly Retained Overpayments Owed to Medicare and Medicaid ProgramsRead the Press Release
CHARLOTTE, N.C. - Statesville-based Iredell Physician Network, LLC (IPN) has agreed to pay $138,612 to resolve the allegations that it knowingly avoided an obligation to repay money owed to the Medicare and Medicaid programs, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
IPN is a wholly-owned subsidiary of Iredell Health System, which operates a hospital and multiple medical practices in and around Statesville, North Carolina. The settlement resolves allegations that IPN knowingly retained overpayments, or payments to which it was not entitled, obtained as the result of its billing for evaluation and management services performed by one of its providers during the time period of January 1, 2016, through December 31, 2019.
The allegations arose from a lawsuit filed by a whistleblower under the qui tam provisions of the federal False Claims Act. Under the False Claims Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The act also allows the government to intervene and take over the action. The government conducted the investigation and intervened in this action to effectuate the settlement.
The lawsuit resolved by this settlement is United States ex rel. Jill Reid v. Iredell Physician Network, LLC and Ruby Grimm, M.D., Case No. (5:20-cv-73), filed in the Western District of North Carolina. The claims resolved in this settlement are allegations only and there has been no determination of liability.
Assistant United States Attorneys Julia Wood and Katherine Armstrong of the U.S. Attorney’s Office in Charlotte are in charge of the civil proceedings.
Yancey Co. Man Is Sentenced to 20 Years for Producing Child PornographyRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Dena J. King announced today that Joshua Andrew Phillips, 33, of Burnsville, N.C., was sentenced to 20 years in federal prison for producing child pornography. Upon his release from prison, Phillips will be subject to a lifetime of supervised release and must register as a sex offender.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Sheriff Shane Hilliard of the Yancey County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
On May 20, 2022, Phillips pleaded guilty to production of child pornography. According to filed documents and statements made in court, in February 2020, the Yancey County Sheriff’s Office received information from the National Center for Missing and Exploited Children (NCMEC) that an individual was using social media to share child pornography. Law enforcement identified Phillips as the person sharing the child pornography. Over the course of the investigation, law enforcement retrieved Phillips’s cellular phones and computer. An HSI Computer Forensic Analyst conducted a forensic review of Phillips’s devices and located the child pornography images of the minors Phillips had produced. In addition, law enforcement also discovered on the defendant’s devices more than 8,400 images and videos that depicted children being sexually abused.
Phillips is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended HSI and the Yancey County Sheriff’s Office for their joint investigation of the case.
Assistant U.S. Attorney Alexis Solheim, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .
U.S. Attorney's Office for the Western District of North Carolina Takes Part in Department's Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King joins the Justice Department in announcing today the results of the Department’s efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
“Financial predators view older adults as a target rich environment,” said U.S. Attorney King. “The increased presence of elderly individuals online offers ample opportunities for fraudsters to perpetrate financial scams on older victims and steal their hard-earned money. Investigating and prosecuting bad actors who engage in the financial exploitation of older Americans is a priority for my office. I also urge older adults, family members, and caretakers to be on the lookout for schemes targeting the elderly. Prevention and education is the best way to ensure older adults are protected from this appalling criminal activity. Reporting financial scams is equally important. If you are the victim of a scam or suspect an older individual is being financially victimized take action and report the fraud,” King added.
During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged. During that time frame, the U.S. Attorney’s Office in the Western District of North Carolina has taken federal action through the filing of criminal or civil cases involving financial schemes that targeted or largely affected seniors.
In August 2022, a Liberian national was sentenced to 10 years in prison for his role in an online romance scam that targeted older adults. In June 2022, a home health provider was ordered to serve 45 months in prison for stealing more than $1 million from two elderly clients. In March 2022, the U.S. Attorney’s Office announced the successful forfeiture and return of stolen cryptocurrency to an elderly individual victimized by a government imposter scam. Additionally, in May 2022, the U.S. Attorney’s Office obtained a final forfeiture order for hundreds of thousands of dollars worth of cryptocurrency, which will be returned to an elderly victim of a romance/investment scheme. Furthermore, in December 2021, the Court ordered the forfeiture of a property purchased with the fraud proceeds perpetrated by the purported caregivers of an elderly victim. In addition to securing prison sentences for the perpetrators of the fraud, the Justice Department agreed to return the forfeited assets to the victim’s estate.
As part of its efforts to stem the tide of elder financial fraud, the U.S. Attorney’s Office continues to engage in outreach to the community to raise awareness about financial scams. Last week, U.S. Attorney King hosted a scam alert seminar at the Rutherford County Senior Center, during which participants were presented important information about financial fraud. Following the presentation, the participants engaged in a game of “Fraud Bingo,” a fun activity designed to deliver information and practical tips on how to prevent the financial exploitation and victimization of older adults by scammers.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-866 FRAUD-11 (1-833-372-8311). This 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 next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cherokee Man Is Sentenced to 14 Years for Second Degree Murder in Indian CountryRead the Press Release
ASHEVILLE, N.C. – A Cherokee, N.C. man convicted of second degree murder was sentenced to 168 months in prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Yalegwo Ki Sadongei, 21, an enrolled member of the Eastern Band of Cherokee Indians, was also ordered to serve five years of supervised release after he completes his prison term.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Carla Neadeau of the Cherokee Indian Police Department join U.S. Attorney King in making today’s announcement.
According to filed court records and court proceedings, on December 13, 2019, Sadongei and the victim were at the residence of a family member of the victim, located on the Qualla Boundary within Indian Country. Over the course of the evening, Sadongei and the victim argued before Sadongei shot the victim in the chest and the victim died as a result of the gunshot wound. Court records show that, after shooting the victim, Sadongei fled the scene, then visited the home of another member of the victim’s family to explain his version of what happened. On the way, he attempted to dispose of the firearm. Law enforcement later recovered the firearm Sadongei used to shoot the victim, a Hi-Point 9mm handgun, and a magazine.
Sadongei is in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney King thanked the FBI and the Cherokee Indian Police Department for their investigation of the case.
Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
Brevard, N.C. Woman Is Sentenced to 15 Years on Drug ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Max Cogburn sentenced today Victoria Kerrigan Irby, 26, of Brevard, North Carolina, to 15 years in federal prison for trafficking narcotics, including fentanyl that resulted in an overdose death, 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 Asheville Post of Duty, and Chief David Zack of the Asheville Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s sentencing hearing, between January 2018 and June 2019, Irby was involved in the distribution of narcotics in and around Buncombe County. Court records show that Irby was trafficking various types of narcotics but primarily engaged in the distribution of fentanyl. According to court documents, Irby distributed pure or uncut fentanyl knowing that it was causing her customers to overdose. As discussed in court today, Irby had to revive multiple customers that had overdosed on fentanyl she was distributing. On May 23, 2019, Irby sold fentanyl to a victim identifed in court documents as D.F., which resulted in the victim’s overdose death. Irby continued to sell fentanyl even after the victim’s overdose death.
On April 4, 2022, Irby pleaded guilty to possession with intent to distribute a quantity of heroin, a quantity of marijuana, a quantity of fentanyl, a quantity of methamphetamine, and a quantity of buprenorphine, and distribution of a quantity of heroin, a quantity of marijuana, a quantity of fentanyl, a quantity of methamphetamine, and a quantity of buprenorphine. As part of her plea, Irby also admitted to knowingly and intentionally distributing a mixture or substance that contained fentanyl to D.F. on May 23, 2019, and that D.F.’s death resulted from his use of the fentanyl supplied by Irby.
In imposing Irby’s 15-year prison sentence, Judge Cogburn stated that Irby’s conduct of continuing to sell fentanyl she knew was causing her customers to overdose and her continuing to sell fentanyl even after the fentanyl death occurred was particularly troubling.
Irby 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 DEA in Asheville and the Asheville Police Department handled the investigation.
Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Two Armed Methamphetamine Traffickers Are Handed Down Lengthy Prison TermsRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Lawrence Jeffrey Brooks, 41, of Mount Holly, N.C., to 396 months in prison followed by 10 years of supervised release, and Dustin Blair Henry, 39, of Charlotte, to 235 months in prison and five years of supervised release for drug trafficking and firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed documents and information introduced at the sentencing hearings,
Brooks was the leader of a large drug trafficking organization operating in Mecklenburg County, of which Henry was a member. Court records show that, over the course of the drug conspiracy, the defendants conducted multiple drug transactions involving the sale of methamphetamine and illegally possessed firearms.
According to court documents, on January 29, 2019, law enforcement learned that Henry, who at the time was on post-release supervision stemming from a state drug conviction, sold methamphetamine to an individual. As a result, law enforcement conducted a search of Henry’s residence and seized four firearms, which Henry was prohibited from possessing. In February 2019, Brooks and Henry robbed at gun point two individuals over the course of a drug transaction. And, on May 14, 2019, law enforcement conducted a traffic stop of Brooks’s vehicle, from which they seized one kilogram of methamphetamine and two handguns that belonged to Brooks. As a convicted felon, Brooks is prohibited from possessing firearms. During a subsequent search of Brooks’s storage unit, law enforcement seized eight kilograms of methamphetamine.
On April 28, 2022, Brooks pleaded guilty to conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm by a felon. Henry pleaded guilty on February 26, 2020, to conspiracy to distribute methamphetamine, distribution of methamphetamine, and possession of a firearm by a felon. Both men are currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation, which to date has led to the federal prosecution of more than 60 individuals for drug trafficking. Law enforcement have also seized more than 49 kilograms of methamphetamine, 29 kilograms of fentanyl, 27 kilograms of cocaine, 3.5 kilograms of heroin, 70 firearms, more than $385,000 in cash, and over $800,000 in other property.
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, the Charlotte Mecklenburg Police Department, the Huntersville Police Department, the Gastonia Police Department, and the Mount Holly Police Department for their coordination and investigation of the case.
Assistant United States Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Methamphetamine Trafficker Is Sentenced to 13+ Years in PrisonRead the Press Release
ASHEVILLE, N.C. – Today, Chief U.S. District Judge Martin Reidinger sentenced Michael Wayne Noblitt, 43, of Marion, N.C., to 160 months in prison followed by five years of supervised release for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to court documents and today’s court proceedings, in November 2019, an individual contacted law enforcement to report that Noblitt was trafficking methamphetamine in Rutherford County. Over the course of the investigation into Noblitt’s drug trafficking activities, law enforcement learned that Noblitt was also responsible for shooting at a dwelling, which Noblitt admitted to during a telephone conversation with the individual who reported him to law enforcement. According to court records, on November 25, 2019, law enforcement arrested Noblitt on outstanding warrants. At the time of his arrest, law enforcement seized from Noblitt more than 70 grams of methamphetamine and a Ruger .380 caliber pistol.
On June 6, 2022, Noblitt pleaded guilty to possession with intent to distribute methamphetamine. He is currently in custody and will be transferred to the custody of the Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives, the North Carolina State Bureau of Investigation, the Rutherford County Sheriff’s Office, and the Rutherfordton Police Department for their investigation of the case.
Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
Drug Conspirators Are Sentenced to Prison for Trafficking Fentanyl and MethamphetamineRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Jose Francisco Vasquez-Rico, 22, and Andrew Estiben Reyna-Rodriguez, 23, both of Charlotte, were sentenced to 168 months and 51 months in prison, respectively, for trafficking fentanyl and methamphetamine. U.S. District Judge Kenneth D. Bell also ordered the defendants to serve five years of supervised release upon completion of their prison terms.
According to filed court documents and court proceedings, between September 2020 and January 2021, Vasquez-Rico and Reyna-Rodriguez conspired with each other and other individuals to traffic narcotics, including fentanyl and methamphetamine, in Mecklenburg, Gaston, and Cleveland Counties. Court documents and information presented at the sentencing hearing showed that Vasquez-Rico was the head of the local drug ring. Over the course of the investigation, undercover agents posing as customers purchased fentanyl and methamphetamine on multiple occasions from Vasquez-Rico and Reyna-Rodriguez.
According to court documents and information presented at the sentencing hearing, on one occasion, Vasquez-Rico arranged to sell a kilogram of fentanyl to an undercover agent and agreed to meet the undercover agent in Asheville. While Vasquez-Rico and Reyna-Rodriguez were driving to Asheville to deliver the fentanyl, a North Carolina State Highway Patrol trooper conducted a traffic stop of their vehicle. The defendants initially stopped their car, but then sped off soon when the trooper exited his police vehicle. After speeding away, the pair briefly pulled over to the side of a country road and attempted to hide in the woods a bag and a loaded firearm, which law enforcement subsequently recovered.
According to court documents and information presented at the sentencing hearing, on January 8, 2021, Vasquez-Rico lured a courier who worked for another drug trafficker to a parking lot in Charlotte. The courier and his three small children arrived in a vehicle at the agreed-upon location. Vasquez-Rico and another individual proceeded to kidnap the courier and his children, demanding a vehicle and a kilogram press (which is a machine used to form narcotics into kilogram-sized “bricks”) in exchange for their release. Vasquez-Rico released the hostages after he took possession of the vehicle and the kilogram press.
Vasquez-Rico and Reyna-Rodriguez both pleaded guilty to conspiracy to distribute and to possess with intent to distribute fentanyl and methamphetamine, and distribution and possession with intent to distribute methamphetamine. Both defendants are currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
This effort 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, the Charlotte-Mecklenburg Police Department, the Gastonia Police Department, the Gaston County Police Department, the Lincolnton Police Department, and the North Carolina State Highway Patrol for their coordination and investigation of the case.
Assistant United States Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.