Western District of North Carolina
Press releases recorded for this federal judicial district.
State Prosecutor Is Sworn-In as Special Assistant United States AttorneyRead the Press Release
ASHEVILLE, N.C. – Today, U.S. Attorney Dena J. King swore in Annabelle Chambers as a Special Assistant U.S. Attorney (SAUSA) for the U.S. Attorney’s Office’s Criminal Division in Asheville. Ms. Chambers is a state prosecutor with North Carolina’s 43rd Prosecutorial District which serves the Counties of Cherokee, Clay, Graham, Macon, Swain, Haywood and Jackson, under the leadership of District Attorney Ashley Welch.
The SAUSA position is a reflection of the partnership between the 43rd Prosecutorial District and the U.S. Attorney’s Office. State and federal authorities share concurrent jurisdiction over certain crimes. Concurrent jurisdiction allows for prosecution in either state or federal court. The U.S. Attorney’s Office and the District Attorney’s Office have established this formal partnership to ensure that the appropriate venue for prosecution is selected. The goal of this partnership is to make counties within the jurisdiction of the 43rd Prosecutorial District safer through a coordinated enforcement effort.
In making today’s announcement, U.S. Attorney King said, “The SAUSA program is an important tool we can use to make communities safer by identifying and prosecuting cases in federal court that result in the greatest local impact. I want to thank District Attorney Welch for her continued support of the program and for her ongoing coordination and cooperation with our office in our shared goal to protect our communities.”
“Cooperation across all levels of government is one of the most effective weapons we have in combatting crime," District Attorney Welch said. “The SAUSA program has proven an amazing tool for vigorous prosecution of criminal activity in the 43rd Prosecutorial District. This program demonstrates how a strong, successful and sustained federal and state partnership can help us safeguard our communities. I thank U.S. Attorney King for her continued support of SAUSA and anticipate additional initiatives involving her office and mine.”
As a dually-sworn state and federal prosecutor, Ms. Chambers will be primarily responsible for criminal cases arising out of the 43rd Prosecutorial District involving the violation of federal criminal statutes. Ms. Chambers will remain on the staff of the District Attorney’s Office but will serve in all respects as an Assistant U.S. Attorney in charge of overseeing the progression of federal cases from the initiation of federal charges to disposition and sentencing. Ms. Chambers will collaborate with state, local and federal agencies to identify and prioritize cases originating in state court for federal indictment. Ms. Chambers will also be responsible for drafting charging documents, search and arrest warrants, complaints, motions and responses, presenting matters before the grand jury, representing the United States before all federal courts in the Western District of North Carolina, and other such duties necessary for the successful prosecution of these cases.
Prior to joining the District Attorney’s Office, Ms. Chambers was an Associate with Asheville Legal, Wimer Snider, P.C. Before that, Ms. Chambers was an Assistant State Attorney with Florida’s 18th Judicial Circuit in Brevard County, where she prosecuted felony cases in Circuit Court. Ms. Chambers received her law degree from Stetson University College of Law and her undergraduate degree from Sewanee: The University of the South in Tennessee.
Armed Bank Robber Is Sentenced to More Than 15 YearsRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that Terie Smith, 42, of Wingate, N.C., was sentenced to 188 months in prison and five years of supervised release in prison for armed bank robbery.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department, join U.S. Attorney King in making today’s announcement.
According to court documents and today’s sentencing hearing, on December 24, 2018, Smith robbed the SunTrust bank branch located at 1935 Galleria Blvd in Charlotte. Court records show that Smith entered the bank wearing an orange ski mask. At the time, three bank tellers were working. Smith was carrying a bookbag in one hand and a firearm in the other. After Smith entered the bank, he approached each teller and demanded money. The tellers handed Smith $21,742 and Smith fled the scene. Smith was arrested on January 15, 2019. At the time he committed the armed bank robbery, Smith was on supervised release for a previous federal bank robbery conviction in 2003. Smith was also previously convicted of Felony Breaking and Entering, Felony Robbery with a Dangerous Weapon, Assault on a Female, and Felony Second Degree Kidnapping. Under federal sentencing law, Smith was subject to an enhanced sentence as a Career Offender, based on his prior convictions.
Smith is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI and CMPD investigated the case. Assistant U.S. Attorneys Cortney Randall and Matthew Warren handled the prosecution.
Charlotte Woman Pleads Guilty to COVID-19 Unemployment Benefits FraudRead the Press Release
CHARLOTTE, N.C. – Kaila Leaann Shanteau-Jackson, 30, of Charlotte, pleaded guilty to wire fraud today, for defrauding the State of Arizona’s COVID-19 Unemployment Insurance (UI) benefit program of approximately $995,000, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Jason Byrnes, Acting Special Agent in Charge of the U.S. Secret Service, Charlotte Field Office, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department join U.S. Attorney King in making today’s announcement.
According to plea documents and statements made in court, from June 2020 to September 2021, Jackson engaged in a scheme to defraud the U.S. Department of Labor and the State of Arizona by fraudulently creating and redirecting payments for COVID-19 UI benefits to herself and others. During the relevant time frame, Jackson was employed as a vendor-contractor for a financial institution that serviced the UI benefit program in Arizona through the mailing of pre-paid debit cards to qualified recipients. Jackson held the position of Pre-Paid Claims Initiation Agent with the financial institution and, as part of her employment, Jackson had access to the financial institution’s Pre-Paid Administration System (PAS).
According to court documents, Jackson utilized her employment credentials to divert and re-route UI benefits intended for 138 victims to herself and others. To effectuate the scheme, Jackson accessed PAS and changed the recipients’ address information in the database to addresses in Charlotte to which Jackson and others had access. Once Jackson and others received the re-routed pre-paid debit cards, they either withdrew the benefits in cash from ATMs or engaged in merchant transactions with the stolen funds.
Jackson appeared before U.S. Magistrate Judge David C. Keesler and pleaded guilty to wire fraud. The charge carries a maximum term of 30 years in prison and a $1,000,000 fine. A sentencing date for Jackson has not been set.
In making today’s announcement, U.S. Attorney King thanked the U.S. Secret Service and CMPD for their investigative efforts.
The prosecution is handled by Assistant U.S. Attorney Matthew Warren 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 can also call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
Monroe Man Is Charged with Wire Fraud for Operating an Investment SchemeRead the Press Release
CHARLOTTE, N.C. – A Monroe, N.C., man charged with wire fraud for operating an investment scheme appeared before U.S. Magistrate Judge David S. Cayer today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. A federal criminal indictment was unsealed following the arrest of Christon Jermaine Brewer, 37, who also goes by the names Chris Bozay and Christian Massey.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
According to allegations contained in the indictment, from October 2018 to June 2022, Brewer executed a scheme to defraud at least ten victim-investors of more than $150,000. Brewer falsely represented to his victims – generally friends or acquaintances of the defendant – that he would invest their funds in the stock market and in a cannabis store he was opening in Miami, Florida. The indictment alleges that Brewer represented himself to victims as a wealthy and experienced investor, who would take advantage of investment opportunities to invest the victims’ money in a manner that would return profits and yield guaranteed returns. The indictment further alleges that Brewer sometimes provided victim-investors with Promissory Notes, reflecting the amount of their investments and the date upon which they were to be repaid. Relying upon Brewer’s false and fraudulent representations, victim-investors would then send thousands of dollars to the defendant for investment, often in cash or using mobile peer to peer payment methods, like Apple Pay or Cash App. As alleged in the indictment, Brewer did not invest the victims’ money as agreed. Instead, he stole the money, and used it to pay for various personal expenses to support his lifestyle. While he was spending the victims’ money, the indictment alleges that Brewer would lull them into thinking their investments were safe by sending them text messages that provided purported updates on their investments and screenshots purportedly showing the high returns on their investments.
Brewer is currently in federal custody. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
The charge contained in the indictment is an allegation and the defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
The FBI handled the investigation that led to the charges. Assistant U.S. Attorney Maria Vento of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Nurse Practitioner Pleads Guilty to Conspiracy in $15 Million Durable Medical Equipment SchemeRead the Press Release
CHARLOTTE, N.C. – Justin Segrest, 44, of Mount Airy, N.C., appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to a conspiracy charge for his role in a durable medical equipment (DME) scheme that defrauded Medicare of almost $15 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tamala E. Miles, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the region including North Carolina, join U.S. Attorney King in making today’s announcement.
According to filed plead documents and today’s plea hearing, during 2018 and 2019, Segrest was a nurse practitioner and was working for a telemedicine company based in Delaware. During the relevant time, Segrest caused thousands of claims to be submitted to Medicare for medically unnecessary orthopedic braces and other DME. As Segrest admitted in court today, Segrest facilitated the scheme by making false claims in medical records to support the fraudulent claims. He did so by signing false medical records describing purported “assessments” of Medicare beneficiaries and certifying that he had performed corresponding medical examinations when, in fact, Segrest had no interaction with the beneficiaries and made no medical determination whether the devices were medically necessary or the beneficiaries needed the DME. Segrest received from the telemedicine company unsigned orders for orthopedic braces for the beneficiaries, which he signed and returned to the telemedicine company in exchange for $15 for each purported assessment that he performed. Through this scheme, Segrest caused the submission of nearly $15 million in false and fraudulent claims to Medicare.
Following today’s plea hearing, Segrest was released on bond. The conspiracy charge carries a maximum prison term of five years and a $250,000 fine. A sentencing date for Segrest has not been set.
The investigation was handled by the FBI and HHS-OIG. Assistant U.S. Attorney Graham Billings of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
U.S. Attorney Dena J. King Urges Consumers to Beware of Common Summer ScamsRead the Press Release
CHARLOTTE, N.C. – With summer upon us, U.S. Attorney Dena J. King urges consumers to be mindful of vacation, employment, and other summertime schemes, and take measures to avoid falling victims to common summer scams.
“Summer is the time of the year that many of us vacation, travel, and spend time with family and friends. But it’s also a popular time for scammers to maximize their profits by preying on consumers trying to save money on a good summer deal. Stay vigilant and beware of summer scams. Think before you buy and don’t let a scammer turn your summer into a nightmare,” said U.S. Attorney King.
The most common scams to look out for during the summer include:
Free or Discounted Vacation Packages – Whether it’s an email congratulating you for winning a free trip that requires you “only” to pay for fees and taxes, or a link to a website offering limited-time travel discounts, these types of summer scams are prominent. Common vacation scams include discounted deals on cruises, all-inclusive resorts, and flights, hotels and car rentals to popular destinations. Don’t be fooled by vacation scams and avoid the urge to take advantage of these too-good-to-be-true offers. Instead, book your travel through reputable, well-known travel engines or travel agencies. If you receive a special travel offer through email, do not make reservations using the provided link, even if it appears to be from a well-known travel booking website. Instead, go directly to the booking engine’s web page to locate the deal and make travel arrangements.
Low-Priced Vacation Rentals – Similar to bogus vacation packages, beware of scammers posting fake short-term rental properties available for a bargain price at popular vacation spots. Sometimes the advertised properties do not exist. Other times, scammers use photos of actual rental properties to create fraudulent listings. Be extra careful before booking a short-term rental property online especially one advertised at a discounted price. To avoid falling victim to this type of scam, either contact a local real estate company that specializes in vacation rentals or search the desired property on multiple short-term rental websites prior to booking to ensure the listing is not a scam. Also, ask the renter for additional photos, and reserve the property using a payment option that makes it easier to recoup a fraudulent charge.
Discounted Excursions or Entertainment Events – Be vigilant against scams that tout limited time offers on vacation excursions or cheap tickets to entertainment events, such as concerts. When booking an excursion, research the company offering the deal. Look for customer reviews that date a few months or years back to ensure this is a well-established business and check with the Better Business Bureau for any complaints on file. In addition, call the company directly before making an online credit card purchase. When buying tickets to events, it’s best to use reputable ticket sellers to ensure the tickets you are purchasing are legitimate.
Free Wi-Fi – During the summer, many people are on the go. With more and more businesses, restaurants, and venues offering free wi-fi access, it is easy to become a victim of wi-fi fraud. With this type of scam, fraudsters use what appears to be legitimate “free” wi-fi to dupe users into connecting to networks that can steal their information. Free wi-fi networks are generally unsecured. To the extent possible, avoid using them altogether, but definitely avoid using them to transmit sensitive information or conduct financial transactions.
Online summer Jobs – Online summer jobs offer an opportunity for extra income. If you are applying for a summer job online, take extra precautions with furnishing personally identifying information (PII) such as a Social Security number, date of birth, home address, etc. Be extra cautious with online employers who require applicants to send their PII for the purpose of conducting a background check before being offered the job. Instead, research the company and call the company directly to ensure it is a legitimate business in need of summer help.
The Moving Scam – Lots of people take advantage of the summer months to move. Unfortunately, scammers also are looking to exploit consumers in need of moving services. Moving schemes offering discounted deals can end up being very costly. When moving, take the time to research moving companies and ask for referrals. Be mindful of moving companies that offer low prices, have recent or no online reviews, or ask for advance payment to “lock in” the discounted rate. Check with the local Better Business Bureau to make sure you are dealing with a reputable moving company.
The tips below can help keep you safe from fraud this summer:
- Avoid paying with wire transfers, cash, gift cards, or sending money to individuals with whom you have only communicated online.
- Avoid “free” deals that require you to pay a fee. If a deal is truly free, you should never have to pay for any portion of it.
- Do not give out your credit card, bank account or other personal information.
- Before going on vacation, whether stateside or overseas, contact your banking institution and credit companies so they can alert you of unusual spending patterns or high dollar credit card charges.
- After your vacation, check your credit card or banking statements for extra or fraudulent charges.
To report fraud, file an online complaint with the Federal Trade Commission.
Hickory Man Is Sentenced to Nearly 20 Years in Prison on Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Koby Dale Tevepaugh, 32, of Hickory, N.C., to 235 months in prison followed by five years of supervised release for drug trafficking and firearm offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed documents and court proceedings, between September and November 2021, Tevepaugh trafficked large amounts of methamphetamine in and around Catawba County. On November 10, 2021, Tevepaugh shot a firearm at a neighbor and proceeded to barricade himself in his home. Court records show that Tevepaugh eventually surrendered to law enforcement. Upon his surrender, law enforcement seized from Tevepaugh’s residence four kilograms of methamphetamine, $189,270 in cash, and five firearms. Over the course of the investigation, law enforcement seized an additional $22,465 in drug proceeds. Tevepaugh has multiple prior convictions for Breaking and Entering, First Degree Burglary, and felony drug offenses, which resulted in an increased sentence.
Tevepaugh previously pleaded guilty to three counts of distribution of, and possession with intent to distribute, methamphetamine and possession of firearms by a convicted felon. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation which has led to the federal prosecution of more than 60 individuals for drug trafficking. Law enforcement have also seized more than 27 kilograms of cocaine, 3.5 kilograms of heroin, 29 kilograms of fentanyl, 49 kilograms of methamphetamine, 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 Homeland Security Investigations; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the North Carolina State Bureau of Investigations; the Catawba County Sheriff’s Office; Burke County Sheriff’s Office; the Hickory Police Department; the Morganton Department of Public Safety; the Longview Police Department; the Huntersville Police Department, and the Gastonia Police Department for their coordination and investigation of the case.
Assistant United States Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charlotte Woman Pleads Guilty to Wire Fraud Conspiracy for Falsely Obtaining Coronavirus Relief FundsRead the Press Release
CHARLOTTE, N.C. – Yesenia Rodriguez, 25, of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to conspiring to commit wire fraud for fraudulently obtaining over $100,000 in COVID-19 relief funds, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s plea hearing, Rodriguez engaged in a conspiracy to defraud the U.S. Small Business Administration (SBA) by, among other things, obtaining an Economic Injury Disaster Loan (EIDL) based on false information. As Rodriguez admitted in court today, from April 2020 through May 2021, the defendant conspired with another individual, identified in court documents as G.R., to obtain COVID-19 relief funds, including two loans under the EIDL program and federally subsidized unemployment benefits totaling over $100,000.
Plea documents show that in July 2020, Rodriguez electronically submitted a fraudulent EIDL application for a purported hair and nail salon named Yesenia Rodriguez. Rodriguez, who had recently left her job at a national bank, submitted the application for the purported salon, when in fact Rodriguez did not own a salon and, instead, was collecting unemployment. As a result of the fraudulent EIDL application, Rodriguez received $37,500 in relief funding via electronic financial transactions. Rodriguez’s co-conspirator, G.R., also fraudulently obtained EIDL funding totaling $47,500 for a business identified as Company 1. Although Company 1 was a real operating business, G.R. electronically submitted a fraudulent application that contained false representations about its eligibility for EIDL funding, including the date Company 1 was founded. At the time the EIDL application was submitted for Company 1, G.R. was also fraudulently collecting federally subsidized unemployment benefits from the State of North Carolina. Rodriguez and G.R. fraudulently obtained at least $112,000 in disaster relief funds that were intended for existing businesses and individuals harmed by the COVID-19 pandemic.
Rodriguez was released on bond following today’s guilty plea. The conspiracy charge carries a maximum prison term of 5 years and a $250,000 fine. A sentencing date has not been set.
The CARES Act is a federal law enacted March 29, 2020, and it is designed to provide emergency financial assistance to millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act established several new temporary programs and provided for the expansion of others, including the EIDL program, which is an SBA program that provides low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters.
In making today’s announcement U.S. Attorney King commended the FBI for their investigation and thanked the North Carolina Department of Public Safety Special Operations and Intelligence Unit for their invaluable assistance.
Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
The Department of Justice and the U.S. Attorney’s Office for the Western District of North Carolina remain vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. If you think you are a victim of coronavirus fraud or have information pertaining to fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or submit a complaint online using the NCDF Web 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.
Mexican National Is Sentenced to More Than 12 Years for Drug Trafficking, Money Laundering, and Illegal ReentryRead the Press Release
CHARLOTTE, N.C. – Jose Velasquez, 38, of Mexico, was sentenced yesterday to 151 months in prison and five years of supervised release for drug trafficking, money laundering, and illegal reentry, 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 Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, join U.S. Attorney King in making today’s announcement.
According to court documents and court proceedings, from at least 2018 to 2020, Velasquez was a member of a drug trafficking organization (DTO) responsible for distributing bulk quantities of cocaine, heroin, and methamphetamine in the greater Charlotte area and throughout Western North Carolina. On January 24, 2020, law enforcement arrested Velasquez on criminal illegal reentry charges. On the same date, law enforcement also executed search warrants at Velasquez’s residence and vehicle, seizing more than two kilograms of heroin, half a kilogram of cocaine, and approximately half a kilogram of fentanyl and methamphetamine. As described in court documents, in addition to trafficking narcotics, Velasquez laundered drug proceeds to the DTO leaders in Mexico via money wires. Velasquez also used his boutique shop, Envios & Botique Rosita, located at 4801 S. Tryon Street, in Charlotte, to conduct his drug trafficking activities and to launder drug proceeds for the DTO.
Velasquez pleaded guilty to conspiracy to distribute and to possess with intent to distribute heroin, methamphetamine and cocaine, money laundering conspiracy, possession with intent to distribute heroin, and illegal reentry of a deported alien subsequent to the conviction for an aggravated felony, that being Fraud in 2004 and Larceny from the Person in 2009.
Velasquez is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. Velasquez will also be subject to deportation proceedings upon the completion of his federal sentence.
The DEA and HSI led the investigation, which is the result 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.
Assistant U.S. Attorneys Regina Pack and Kenneth Smith of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Charlotte Man Is Sentenced to More Than 12 Years in Prison for Sex Trafficking of A MinorRead the Press Release
CHARLOTTE, N.C. – Dajuan Akeem Blair, 26, of Charlotte, was sentenced to 151 months in prison today for sex trafficking of a minor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Blair was also ordered to serve a lifetime under court supervision and to register as a sex offender.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to filed documents and statements made at today’s sentencing hearing, Blair was convicted of causing a minor female to engage in prostitution. The victim was a 16-year-old runaway, and she was introduced to Blair by a mutual friend, also a teenager, who had previously dated the defendant. Blair knew that both females were minors. According to court records, on December 26, 2018, Blair rented a motel room in Charlotte, where he took pictures of the minors and used the pictures to advertise the minors for sex online. Over the next two days, Blair arranged sexual encounters for the minors and set the prices for those encounters. Court records show that Blair took a portion of the minor victim’s earnings from the commercial sex.
“Blair trafficked two underage girls and used them like commodities to be traded for his gain,” said U.S. Attorney King. “Let it be known that severe consequences befall those who engage in this reprehensible conduct,” said U.S. Attorney King.
“Blair lied to his young victims from the very start, he robbed them of their civil rights to make a profit, but now he will pay the price. There is no way of knowing the long term psychological damage caused to these victims. The FBI devotes significant resources to help sex trafficking victims recover from the trauma they suffer,” said Special Agent in Charge Wells.
“The defendant’s heinous predatory behavior is deserving of a lengthy prison sentence to ensure he cannot inflict further harm on other victims,” said Special Agent in Charge Martinez. “HSI is appreciative of the collaborative efforts of CMPD, FBI and the U.S. Attorney’s Office Human Trafficking Task Force for its work with HSI on this investigation.”
Blair is currently in federal custody. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
The investigation was handled by the FBI, HSI and CMPD. Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte prosecuted the case.
If you are the victim of a human trafficking or may have information about a potential trafficking situation, call the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888. NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week, every day of the year related to potential trafficking victims, suspicious behaviors, and/or locations where trafficking is suspected to occur. To submit a tip to the NHTRC online please visit https://humantraffickinghotline.org/report-trafficking.
You can also contact Homeland Security Investigations at 1-866-DHS-2-ICE (1-866-347-2423) or the Charlotte Office of the FBI at 704-672-6100.
Home Health Care Provider Is Sentenced to Prison for Stealing More Than $1 Million from Two Elderly ClientsRead the Press Release
ASHEVILLE, N.C. – Chief U.S. District Judge Martin Reidinger sentenced Lindsey Allison Kerns, 39, of Mars Hill, N.C., to 45 months in prison today, for stealing more than $1 million from two elderly clients in her care, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Reidinger ordered Kerns to serve three years under court supervision and to pay $1,088,554.99 as restitution.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, join U.S. Attorney King in making today’s announcement.
“Most home health care providers are reputable and committed to providing quality services to older adults entrusted in their care. Kerns is not one of them,” said U.S. Attorney King. “This defendant took advantage of two vulnerable seniors, exploited their trust, and swindled them out of hundreds of thousands of dollars. As a community, it is our responsibility to take care of our elders. And as law enforcement, it is our duty to put those who harm them behind bars.”
“Lindsey Kerns was hired to provide daily care to two elderly people. She overcharged them by a million dollars and bought trucks, ATVs, expensive clothing and went on lavish vacations. This is a case of greed and abuse of trust. The FBI will continue to work with our partners to ensure anyone who commits crimes against the elderly will face the consequences,” said Special Agent in Charge Wells.
“Senior citizens and those who care about them need to be on alert for various scams targeting elder Americans. The IRS recognizes the pervasiveness of fraud targeting older Americans, and we will work with our law enforcement partners to combat these crimes and hold the responsible parties accountable for their actions,” said Brian Thomas, Assistant Special Agent in Charge of IRS-CI in Charlotte.
According to information contained in court documents and court proceedings, from December 2018 to April 2020, Kerns owned and operated Home Care Coordinators, LLC, a business that provided home health care in Buncombe and Madison Counties. Beginning in December 2018, Kerns arranged to provide home health care services to two elderly clients, identified in court documents as S.A. and P.R., who were 86 and 90 years old, respectively. The two elderly clients lived in Asheville and were close friends. P.R. also suffered from dementia and was not capable of handling his affairs. S.A. served as P.R.’s power of attorney and managed and controlled P.R.’s finances.
According to court documents, Kerns provided home health care services to S.A. and P.R. all of 2019 and into 2020. During that time, Kerns did not provide S.A. or P.R. with detailed invoices of her home health care services. Instead, Kerns orally informed S.A. on a weekly basis how much money Kerns claimed she was owed for services rendered, and S.A. wrote checks in those amounts from P.R.’s bank accounts. Over the course of the scheme, Kerns defrauded the elderly victims in a number of ways, including by overbilling them for services that were inflated or never provided; double-billing them for other services such as cleaning and moving that were either not provided or were provided by caregivers during hours already billed; and by billing at a higher rate than what Kerns and the victims had agreed upon.
According to court documents, from December 2018 through April 2020, Kerns directed S.A. to pay, and did receive, $1,465,546.99 for home health care and other services allegedly rendered by Kerns to the victims. The actual fair market value of the services provided to the victims by Kerns was $376,992. Kerns thereby overcharged S.A. and P.R. $1,088,554.99 for services that were never provided.
Kerns used the money she swindled from the victims to purchase vehicles and ATVs, to buy luxury retail items, and to pay for hotel stays and vacation rentals.
According to court records, when Kerns learned she was being investigated by the FBI and IRS, she made a number of false statements to federal agents related to her business activities. For example, Kerns lied about issuing IRS Form 1099s to her employees, lied about purchases she made using the victims’ money, and lied about additional income she received from another client. In addition, after Kerns was served with a grand jury subpoena requiring her to produce certain business records, Kerns fabricated such records and generated false invoices based on the amounts she believed she had received from S.A. and P.R. rather than providing invoices for actual services rendered.
On February 9, 2022, Kerns pleaded guilty to wire fraud and money laundering. She is currently released on bond and will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended the FBI and IRS-CI for their investigation of this case. The U.S. Attorney’s Office in Asheville handled the prosecution.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
Hendersonville Man Is Sentenced to Prison for Violating the Clean Air Act by Selling Thousands of Illegal Devices That Defeat Required Vehicle Emissions Control SystemsRead the Press Release
ASHEVILLE, N.C. – Today, Chief U.S. District Judge Martin Reidinger sentenced Matthew Sidney Geouge, 35, of Hendersonville, N.C., to one year and one day in prison for conspiracy to violate the Clean Air Act by selling more than 14,000 illegal devices that defeat required vehicle emissions control systems, also known as “defeat devices,” announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Geouge was also ordered to serve three years of supervised release, six months of which will be in home confinement, and to pay a civil penalty of $1.3 million to the Environmental Protection Agency (EPA), and $1.2 million in restitution to the IRS. In addition to the Clean Air Act violation, Geouge was also sentenced for tax evasion.
Charles Carfagno, Special Agent in Charge of the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, join U.S. Attorney King in making today’s announcement.
Geouge’s co-conspirators were previously sentenced for their roles in the scheme after pleading guilty to conspiracy to violate the Clean Air Act:
- John A. Slagel, 52, of Fairbury, Illinois, was sentenced to three years of probation, to include six months of home confinement, and was ordered to perform 100 hours of community service and to pay a $150,000 fine.
- Joshua L. Davis, 43, of Metamora, Illinois, was sentenced to three years of probation, to include six months of home confinement, and was ordered to perform 80 hours of community service and to pay a $50,000 fine.
- Spade Kaosu Bailly, 50, of Hendersonville, was sentenced to three years of probation, to include six months of home confinement, and was ordered to perform 100 hours of community service and to pay a $10,000 fine.
“Tuners” are devices capable of defeating vehicles’ computerized emissions controls, in violation of the Clean Air Act. In 2008, Geouge approached a company that manufactured tuners and he tailored software programs for the tuners known as “tunes,” designed to maximize the engine power of particular vehicles resulting in significant increases in harmful air emissions. Beginning in 2012, Slagel worked for and eventually owned the company that manufactured the tuners. Davis and Bailly conspired with Geouge and created other companies that sold tuners manufactured by Slagel’s company with Geouge’s tunes installed on them. In total, the co-conspirators sold far in excess of 14,000 illegal tuners, worth millions of dollars.
The EPA issued a notice of violation to Geouge in 2015. However, Geouge continued to sell and service illegal devices. Geouge also evaded paying a penalty owed to the EPA, and taxes owed to the IRS, by having another individual receive the income he earned from the sale of the illegal devices.
In making today’s announcement, U.S. Attorney King thanked the EPA-CID and IRS-CI for their coordination and investigation of the case.
Assistant United States Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charlotte Doctor Is Indicted for $11 Million Durable Medical Equipment SchemeRead the Press Release
CHARLOTTE, N.C. – A Charlotte doctor is facing federal charges for her role in a durable medical equipment (DME) scheme that defrauded federal benefits programs of more than $11 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Sudipta Mazumder, 46, of Charlotte, is charged with one count of health care fraud and six counts of making false statements relating to health care matters.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tamala Miles, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General for the region including North Carolina, join U.S. Attorney King in making today’s announcement.
According to allegations contained in the indictment, during 2019 and 2020, Mazumder was a doctor in Charlotte who worked as an independent contractor for a Delaware-based telemedicine company. During the relevant time frame, Mazumder allegedly signed fraudulent orders for medically unnecessary durable medical equipment, specifically knee braces, resulting in the submission of thousands of fraudulent reimbursement claims to Medicare and TRICARE totaling approximately $11,436,873. The indictment alleges that Mazumder falsely stated in those orders that she performed medical examinations of Medicare and TRICARE beneficiaries and falsely certified that the braces were medically necessary.
According to allegations in the indictment, contrary to her claims, Mazumder never examined the Medicare and TRICARE beneficiaries. Instead, Mazumder allegedly had little or no interaction with the beneficiaries and made no medical determination whether the devices were medically necessary or the beneficiaries needed the DME. Mazumder received from the telemedicine company unsigned orders for orthopedic braces for the beneficiaries, which she signed and returned to the telemedicine company in exchange for $20 for each purported assessment that she performed.
The charges contained in the indictment are allegations and the defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
The health care fraud charge carries a maximum prison term of 10 years and a $250,000 fine. The charge of making false statements relating to health care matters carries a maximum penalty of five years in prison and a $250,000 fine, per count.
Mazumder’s initial appearance has been scheduled for July 12, 2022, in federal court in Charlotte.
The investigation was handled by the FBI and HHS-OIG with the assistance of the Defense Criminal Investigative Service of the U.S. Department of Defense, Office of the Inspector General.
Assistant U.S. Attorney Graham Billings of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Federal Jury Convicts Hickory Man of Sexual Exploitation of A Minor and Possession of Child PornographyRead the Press Release
STATESVILLE, N.C. – A federal jury in Statesville has convicted Vincent Deritis, 33, of Hickory, N.C., of sexual exploitation of a minor and possession of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Thurman Whisnant of the Hickory Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents, trial evidence and witness testimony, between October 29, 2018, and March 17, 2019, Deritis secretly recorded a minor while the minor was exiting the shower. On April 3, 2019, law enforcement executed a search warrant at Deritis’s residence. A forensic analysis of electronic devices seized from Deritis’s home as well as his cloud storage account revealed that the defendant possessed images and videos that depicted the minor naked while exiting the shower, photos depicting the minor’s genitalia, and thousands of images of child pornography Deritis had downloaded from the internet. The jury convicted Deritis of three counts of production of child pornography and one count of possession of child pornography.
Deritis is currently in federal custody. A sentencing date has not been set. Each count of production of child pornography charge carries a minimum statutory sentence of 15 years and a maximum of 30 years in prison and a $250,000 fine. The charge of possession of child pornography carries a statutory penalty of no more than 20 years in prison and a $250,000 fine.
In making today’s announcement, U.S. Attorney King commended HSI and the Hickory Police Department for their investigation of the case.
Assistant United States Attorneys Cortney Randall and Nick J. Miller, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Indictment Charges CPA with Securities FraudRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has returned a criminal indictment charging Mac Wayne Billings, 48, of Raleigh, N.C., with securities fraud, for defrauding at least 19 victims of more than $3.6 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division, joins U.S. Attorney King in making today’s announcement.
According to allegations contained in the indictment, between 2012 and 2019, Billings engaged in securities fraud through his company, Alpha Finance Company (ALPHA), located in Sparta, North Carolina. The indictment alleges that Billings fraudulently obtained more than $3.6 million from at least 19 victims throughout Alleghany, Wilkes and Surry Counties, by soliciting them to invest in ALPHA via “debenture notes.” A debenture note is a type of debt instrument typically not backed by a collateral. As alleged in the indictment, Billings, who is a licensed North Carolina CPA, falsely promised ALPHA’s victim-investors that their money would be used to make high interest consumer loans from which the investors would receive interest payments. Contrary to his promises, Billings used little, if any, of the investors’ funds to make new consumer loans. Rather, Billings used some of the investors’ money to make payments to other investors and to pay himself over $1 million in salary and distributions from ALPHA.
The indictment further alleges that Billings used investment statements, emails and meetings to mislead and deceive victim-investors into believing that ALPHA was a profitable company and that the victims’ investments were safe. In this regard, Billings allegedly failed to disclose material information concerning ALPHA’s financial and business troubles to victim-investors, including that he had sold or mortgaged most of ALPHA’s assets to hard money lenders. Based on the fraudulent information provided by Billings, many of the victim-investors renewed and/or made additional investments with ALPHA, causing them to incur further financial losses.
Finally, lawsuits brought by the North Carolina Commissioner of Banks (NCCOB) and the North Carolina Attorney General’s Office alleged that Billings failed to comply with North Carolina laws governing consumer finance and retail installment loans. Billings defaulted on these lawsuits. Consequently, the NCCOB revoked ALPHA’s license due to non-compliance with North Carolina’s Consumer Finance Act. Courts in Alleghany and Wake Counties declared ALPHA’s loan null and void, leaving the investor-victims with no assets to recoup their losses.
The charges contained in the indictment are allegations and the defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
The securities fraud charge carries a maximum prison term of 20 years and a $5 million fine. Billings’ initial appearance will be scheduled in federal court in Charlotte.
In making today’s announcement, U.S. Attorney King commended the FBI for their investigation of the case and thanked the U.S. Securities and Exchange Commission, the North Carolina Commissioner of Banks, and the North Carolina Attorney General’s Office for their cooperation.
Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
U.S. Attorney Dena J. King Selected as Chair of the Attorney General's Subcommittee on Native American IssuesRead the Press Release
CHARLOTTE, N.C. – United States Attorney Dena J. King has been selected to serve as Chair of the Native American Issues Subcommittee of the Attorney General’s Advisory Committee (AGAC) of U.S. Attorneys.
U.S. Attorney King will also serve on three additional AGAC Subcommittees: Civil Rights, Violent and Organized Crime, and LECC/Victim/Community Issues.
Since 1973, the AGAC has been advising the Attorney General on matters of policy, procedure, and management impacting U.S. Attorneys’ Offices and represents the views of federal prosecutors across the country.
The Native American Issues Subcommittee (NAIS) is the longest standing subcommittee on the AGAC. The NAIS consists of U.S. Attorneys from across the United States serving in districts that include Indian Country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian Country matters, and it is tasked with helping to develop, shape, and implement recommendations on public safety and legal issues affecting Tribal communities. The Eastern Band of Cherokee Indians (EBCI) is the largest federally recognized Indian Tribe east of the Mississippi River and it is located within Western North Carolina.
“I am honored to serve as Chair of the Subcommittee on Native American Issues, the oldest subcommittee of the Attorney General’s Advisory Committee,” said U.S. Attorney King. “I am looking forward to collaborating with my U.S. Attorney colleagues from across the country to provide vital guidance to the Department on important issues impacting Indian Country and how we can best serve Tribal communities."
Nail Salon Owner Is Sentenced to 15 Years in Prison for Compelling A Victim's Labor for Almost Two YearsRead the Press Release
CHARLOTTE, N.C. – U.S. District Court Judge Kenneth D. Bell sentenced Thuy Tien Luong, 38, of Charlotte, North Carolina, to 15 years in prison, followed by two years of supervised release, and ordered her to pay $75,000 in restitution to the victim. A federal jury previously convicted the defendant of forced labor on Jan. 8, 2021, following a five-day trial.
According to the evidence presented at trial, Luong compelled the victim’s labor for almost two years through a variety of coercive means. The defendant physically, emotionally and verbally punished the victim when she disobeyed the defendant or otherwise failed to perform the required labor to the defendant’s satisfaction. As an example, the defendant falsely claimed that the victim owed her a debt of $180,000, made her sign a debt contract, and threatened to go to the police if the victim did not continue to work to pay off the fabricated debt. The defendant beat the victim with nail salon tools, including cuticle clippers, nail files and brooms leaving the victim with scars, bruises and marks. She also threatened to ruin the victim’s reputation with her family by threatening to tell them information that would negatively impact the victim’s relationship with her family. The defendant’s scheme caused the victim to continue working for the defendant until a particularly violent assault led her to report the defendant to the Davidson Police Department.
“This defendant used psychological coercion, debt bondage and violence to break down the will of one of her employees, exploit her vulnerabilities and force her to work long hours under threat of serious harm,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “There continues to be no place for such cruel conduct in our society, and the Department of Justice remains committed to identifying and eliminating human trafficking.”
“Human trafficking is human suffering and it has no place in modern society,” said U.S. Attorney Dena J. King of the Western District of North Carolina. “As our nation prepares to commemorate Juneteenth, it’s difficult to grasp that there are still people in our communities subjected to a life of servitude, compelled to work long hours for little or no pay, abused physically and mentally by those who employ them. Traffickers who use their victims as commodities, take advantage of their needs and exploit their vulnerabilities for personal gain will be prosecuted to the fullest extent of the law.”
“Luong’s egregious criminal conduct is a form of human trafficking that not only exploited our nation’s labor laws, but also subjected the victim to unspeakable harm, including physical and mental abuse,” said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “Thankfully, HSI and its law enforcement partners have put an end to Luong’s activity and she is facing appropriately severe consequences. Pursuing human traffickers and protecting their victims remains a top priority of HSI.”
Assistant Attorney General Clarke, U.S. Attorney King and Special Agent in Charge Martinez announced today’s sentence. The case was investigated by HSI with assistance from the Davidson Police Department and Charlotte-Mecklenburg Police Department. It was prosecuted by Assistant U.S. Attorney Kimlani M. Ford of the Western District of North Carolina and Trial Attorney Maryam Zhuravitsky of the Civil Rights Division’s Human Trafficking Prosecution Unit. Trial Attorney Jessica Arco of the Civil Rights Division’s Human Trafficking Prosecution Unit assisted with sentencing and restitution in this matter.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.
Federal Jury Convicts Atlanta Man for His Role in Supplying Eutylone to Charlotte Area Drug TraffickersRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte has convicted Kenneth Jerome Watkins, 37, of Atlanta, Georgia, of conspiracy to distribute and to possess with intent to distribute Eutylone, 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 three-day trial, which ended yesterday.
According to filed court documents and evidence presented at trial, Watkins along with his co-defendant, Steven Lamar Cloud, and others, was involved in a conspiracy to traffic Eutylone. According to the Drug Enforcement Administration, Eutylone is a schedule I synthetic cathinone, marketed by drug dealers as MDMA (Ecstasy or Molly) and it is frequently abused by youths and young adults. In August and October 2020, Watkins arranged to supply Cloud with pills containing Eutylone. As trial evidence established, Cloud arranged for drug couriers to travel to Atlanta to pick up the pills from Watkins. On October 24, 2020, a trooper with the Georgia State Patrol conducted a traffic stop of the vehicle driven by one of Cloud’s couriers who was returning to Charlotte. Over the course of the traffic stop, the trooper seized over five pounds of pills and more than $4,000 in cash.
Watkins is currently in federal custody. The charge of conspiracy to distribute and to possess with intent to distribute Eutylone carries a sentence of up to 20 years in prison. A sentencing date for Watkins has not been set. Cloud has also pleaded guilty to federal drug offenses and he is awaiting sentencing.
This case is the result of the 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 thanked the Federal Bureau of Investigation, Homeland Security Investigations, the Charlotte-Mecklenburg Police Department, and the Georgia State Patrol for the investigation and coordination in this case.
The U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
Repeat Offender on Supervised Release Admits to Stealing Mail and Pleads Guilty to Wire FraudRead the Press Release
CHARLOTTE, N.C. – A Charlotte man appeared in federal court today and admitted to stealing mail from residential mailboxes and using the stolen information to commit wire fraud, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Soheil Akhavan Rezaie, 37, entered his guilty plea before U.S. Magistrate Judge David C. Keesler.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney King in making today’s announcement.
According to filed plea documents and statements made in court, 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 the defendant admitted in court today, Rezaie 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. He then withdrew the funds before the victims and financial institutions could 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 pleaded guilty to wire fraud which carries a maximum penalty of 20 years in prison and a $250,000 fine. A sentencing date has not been set. When Rezaie engaged in this scheme he was on supervised release for a 2017 mail theft conviction. In addition to the current court proceedings, a second revocation of Rezaie’s supervised release is pending, for violating the terms of his supervised release for the 2017 conviction.
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.
U.S. Attorney Dena J. King Participates in End-Of-Schoolyear Celebration at Charlotte's Turning Point AcademyRead the Press Release
CHARLOTTE, N.C. – Today, U.S. Attorney Dena J. King participated in an end-of-schoolyear celebration during a mentoring session at Charlotte’s Turning Point Academy. Turning Point Academy is an alternative option designed to meet the educational needs of historically underserved middle school and high school students. In addition to providing an educational curriculum, the program offers therapeutic intervention services and behavior and academic prevention and intervention programs, to assist students with developing and implementing a personal plan while attending the program.
In April, U.S. Attorney King was invited to speak to a group of students at Turning Point Academy about her background and experiences as a student and share her challenges and successes as a lawyer throughout her legal career. During her initial visit, U.S. Attorney King was invited to join the Sister Circle, a group made up of high school students at the Academy. Since then, U.S. Attorney King has regularly led mentoring sessions with the Sister Circle students, during which they discuss a number of topics including educational goals, the importance of civic duty, respecting oneself and others, and other areas of interest to the students.
“Being part of the Sister Circle has been a great privilege,” said U.S. Attorney King. “I’m honored to be a member of this close-knit group and I thank the students for placing their trust in me and letting me into their world. My participation has also given me the opportunity to get to know the students better, understand their life experiences, find ways to help them set high expectations for themselves, and encourage their passion for lifelong success. I plan to continue to be in touch with the students and do my part in helping them stay on a positive path.”
Since taking office, U.S. Attorney King has made youth engagement a priority of her community outreach efforts. To date, U.S. Attorney King has collaborated with school districts throughout Western North Carolina to promote youth engagement, support young people in developing the skills they need for future success, and empower students to reach their full potential. Ms. King has spoken with students with Charlotte Mecklenburg Schools, Iredell County Schools, Buncombe County Schools, Asheville City Schools, McDowell County Schools and Cherokee Schools on the Qualla Boundary. During her interactions with the students, U.S. Attorney King has encouraged students to discuss the challenges they face and has urged young people to voice their ideas on how to address these issues.
“As grown-ups we get used to communicating with young people by telling them what they ought to do. However, communication should flow both ways and nobody knows better the challenges young people face than young people,” said U.S. Attorney King. “The purpose of my meetings with students is to hear their stories, learn the impact of trauma and violence in their lives, listen to their thoughts on disparities and inequities throughout society, and understand the obstacles they need to overcome to realize their full potential. These interactions can help guide our violence prevention strategy at a federal level and determine what federal funding and resources are available to address our students’ needs,” King added.
Throughout her school engagements, U.S. Attorney King has also recognized all the adults who work hard to ensure students have the tools and skills they need to succeed. “Students do not succeed on their own,” U.S. Attorney King stated. “There is an extensive and dedicated support network of teachers, administrators, parents, guardians, trusted adults and community members working hard to ensure young people learn how to successfully navigate life’s twists and turns, understand how to become valued members of our communities, and more importantly how they can grow up to develop into positive agents of change. I thank all these individuals for their hard work and their ongoing commitment to our children.”
Registered Sex Offender Is Sentenced to 25 Years in PrisonRead the Press Release
ASHEVILLE, N.C. – A Buffalo, New York man who traveled to Western North Carolina to engage in sexual activity with a minor was sentenced to 25 years in prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Allen Roger Cobb, 63, was ordered to serve a lifetime of supervised release and to register as a sex offender.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, joins U.S. Attorney King in making today’s announcement.
“Cobb is a repeat sex offender who was willing to travel great distance for his sexual gratification with a child. Thanks to the work of HSI and my office, this dangerous predator is off the streets and no longer able to harm innocent children,” said U.S. Attorney King.
“One of HSI’s most important missions is to protect children from predators like Cobb. As a repeat offender Cobb has proven he was willing and capable of traveling to North Carolina to irrevocably harm yet another child, were it not for the outstanding work of our special agents. We will continue to utilize all of the resources at our disposal to ensure individuals like Cobb are investigated and prosecuted to the fullest extent that the law allows,” said Special Agent in Charge Martinez.
According to filed court documents and today’s sentencing hearing, beginning in July 2021, Cobb began communicating online with an undercover HSI agent posing as the parent of a minor female. During the online exchanges, Cobb expressed an interest in having sexual contact with the minor and discussed travel arrangements and details pertaining to the commission of the sexual assault. According to court records, over the course of their discussions, Cobb expressed concern to the HSI agent about being tracked by law enforcement given his sex offender registration status and stressed the importance of being discreet in their communications.
Cobb was arrested on August 31, 2021, after he travelled from Buffalo to Western North Carolina to engage in a sexual act with a minor. At the time of the arrest, law enforcement found a stuffed toy Cobb had purchased as a gift for the minor and a camcorder which Cobb intended to use to record the sexual assault.
On December 29, 2021, Cobb pleaded guilty to traveling to engage in illicit sexual conduct with a 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.
U.S. Attorney King thanked HSI for their investigation that led to today’s sentence. Assistant U.S. Attorney Alexis I. Solheim of the U.S. Attorney’s Office in Asheville prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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U.S. Attorney Dena J. King Appoints Environmental Justice Coordinator for the Western District of North CarolinaRead the Press Release
CHARLOTTE, N.C. – United States Attorney Dena J. King has selected Assistant U.S. Attorney (AUSA) Caroline McLean of the U.S. Attorney’s Office in Asheville to serve as the Western District’s Environmental Justice Coordinator.
On May 5, 2022, the U.S. Department of Justice announced a series of actions aimed at enhancing the Department’s efforts to secure environmental justice for all Americans. In making the announcement, U.S. Attorney General Merrick B. Garland highlighted specific actions to strengthen the Department’s commitment to ensuring equal justice under the law by advancing the cause of environmental justice. Specifically, Attorney General Garland announced the creation of a new Office of Environmental Justice within the Department’s Environmental and Natural Resources Division (ENRD); the launching of a comprehensive environmental justice enforcement strategy to advance the cause of environmental justice through the enforcement of federal laws; and the issuance of an Interim Final Rule to restore the use of supplemental environmental projects when deemed appropriate.
“Although violations of our environmental laws can happen anywhere, communities of color, indigenous communities, and low-income communities often bear the brunt of the harm caused by environmental crime, pollution, and climate change,” said Attorney General Garland. “For far too long, these communities have faced barriers to accessing the justice they deserve. The Office of Environmental Justice will serve as the central hub for our efforts to advance our comprehensive environmental justice enforcement strategy. We will prioritize the cases that will have the greatest impact on the communities most overburdened by environmental harm.”
Attorney General Garland also directed U.S. Attorney’s Offices across the nation to designate an Environmental Justice Coordinator (EJC). As the Western District’s EJC, AUSA McLean will be responsible for developing and overseeing the Office’s environmental justice enforcement strategy; serve as legal counsel on matters related to environmental justice; prosecute criminal and civil environmental justice cases; and conduct public outreach and awareness activities related to environmental justice. AUSA McLean will also serve as the point of contact for environmental justice matters and will create and participate in environmental enforcement task forces. She will also be in charge of establishing a procedure for members of the public to report environmental justice concerns within the Western District of North Carolina.
AUSA McLean joined the U.S. Attorney’s Office in August 2018 and serves in the Office’s Civil Division in Asheville. AUSA McLean is responsible for handling civil defensive litigation in federal and state court, and affirmative civil enforcement cases on behalf of the United States. She is also a member of the Office’s recently-formed Civil Rights Team. In June 2020, AUSA McLean was selected as Buncombe County Bar Distinguished Young Lawyer for her contributions to the legal profession and the community as a member of the Bar.
In making today’s announcement, U.S. Attorney King said, “AUSA Caroline McLean is an experienced federal prosecutor dedicated to serving the people of the Western District of North Carolina. As my Office’s Environmental Justice Coordinator, AUSA McLean will work closely with Department of Justice components, local, state and federal agencies, and stakeholders within the community to address concerns related to environmental justice, using all available legal tools to promote justice for communities historically harmed by environmental violations.”
Healthkeeperz, Inc. to Pay $2.1 Million to Resolve False Claims Act AllegationsRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Dena J. King announced today that Pembroke, North Carolina based behavioral healthcare provider, Healthkeeperz, Inc. (Healthkeeperz), has agreed to resolve allegations that the company violated the False Claims Act by billing claims to Medicaid programs that were not reimbursable under the applicable North Carolina Medical Clinical Coverage Policy. Healthkeeperz has agreed to pay $2.1 million to resolve the allegations.
Healthkeeperz provides case management services for Medicaid beneficiaries under the North Carolina Medicaid Community Alternatives Program for Disabled Adults (CAP/DA). The settlement resolves allegations that from January 1, 2016, through October 31, 2019, Healthkeeperz submitted reimbursement claims to North Carolina Medicaid and received payment based on those claims for services that were not covered by Medicaid.
“Taxpayer-funded programs like Medicaid exist to provide critical services to beneficiaries in need of care, not to fill the coffers of healthcare providers,” said U.S. Attorney King. “When providers seek to divert resources from those who really need them, we will work with our state partners and use all tools at our disposal to pursue and hold accountable entities who perpetrate fraud on federal healthcare programs.”
“Protecting taxpayer resources requires strong partnership between the states and the federal government,” said North Carolina Attorney General Josh Stein. “I appreciate U.S. Attorney King’s partnership. When we work together, we can hold accountable health care providers who break the law.”
The allegations arose from a lawsuit filed by a whistleblower under the qui tam provisions of the federal False Claims Act and the North Carolina False Claims Act. Under the False Claims Acts, 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 settlement is a result of a coordinated effort between the Department of Health and Human Services Office of the Inspector General, the North Carolina Attorney General’s Medicaid Investigations Division, and the United States Attorney’s Office for the Western District of North Carolina.
The lawsuit resolved by this settlement is United States and the State of North Carolina ex rel. Ginger L. Hill v. Healthkeeperz, Inc. (1:20CV32). The claims resolved by this settlement are allegations only and there has been no determination of liability.
U.S. Attorney Dena J. King Announces the Winners of the 6th Annual "Do the Write Thing" Writing Challenge in AshevilleRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Dena J. King announced the winners of the 6th Annual “Do the Write Thing” (DtWT) writing challenge, during an award ceremony held this evening in Asheville.
The Do the Write Thing Challenge is a program of the National Campaign to Stop Violence, which seeks to encourage middle school students to express the impact of violence in their lives through writing, and empower students to become catalysts for positive change by sharing their ideas on ways to reduce youth violence.
“Now more than ever, we must provide children with opportunities to express the impact and trauma violence has caused in their young lives,” said U.S. Attorney King, who chairs the DtWT committee in Asheville. “It is equally important for us adults to really listen, with our ears and our hearts, to the ideas and solutions young people have to offer on how to curb violence in our communities. I want to congratulate the winners, the finalists, and all the students who participated in the writing challenge, and thank the parents, guardians, teachers, and school administrators for supporting and encouraging students to express themselves through the written word. Violence reduction is one of the highest priorities of the Department of Justice, and prevention is an important component of an effective crime reduction strategy. I am looking forward to partnering with our schools and our community to develop pathways for positive change.”
A total of 603 essays written by middle school students attending Asheville Middle School and Buncombe County Schools were submitted for consideration. Of the 12 finalists recognized at this evening’s ceremony, Maggie Agan, an 8th grader with Asheville Middle School, and Bear Farmer, an 8th grader with Valley Springs Middle School, were announced as this year’s overall contest winners and were designated as National DtWT Ambassadors. As National Ambassadors, Maggie and Bear, their parents/guardians and the teachers who submitted their essays will be invited to participate in the “Do the Write Thing Challenge National Recognition Week” in Washington, D.C., in July. During this all-expense-paid trip, Maggie and Bear will have an opportunity to visit national monuments and have their works placed in the Library of Congress.
During this evening’s ceremony, U.S. Attorney King also thanked the Asheville Police Department, the Buncombe County Sheriff’s Office, the Asheville Housing Authority, and the SPARC Foundation for partnering with the U.S. Attorney’s Office to form the DtWT committee. U.S. Attorney King also recognized the teachers, school administrators, counselors, parents, guardians, and caregivers for their dedication in this important endeavor, and thanked them for supporting the students’ efforts and helping them reach their full potential.
For more information on the National Do the Write Thing program please visit http://www.dtwt.org.
Two Sentenced for Issuing Fraudulent Asbestos Training CertificationsRead the Press Release
ASHEVILLE, N.C. – Today, U.S. Magistrate Judge W. Carleton Metcalf sentenced Ana Yorling Rugama Sanchez, 28, of Memphis, Tennessee, to two years of probation and a fine of $1,500, and Jose Carlos “Victor” Pena Lopez, 51, of Winston-Salem, North Carolina, to one year of probation and a fine of $1,000, for their roles in creating false asbestos training certifications, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Charles Carfagno, Special Agent in Charge of the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) joins U.S. Attorney King in making today’s announcement.
“Sanchez and Pena Lopez failed in their duty to ensure that workers handling asbestos receive proper training on how to safely and legally dispose of this toxic substance,” said U.S. Attorney King. “We will continue to work closely with the EPA to hold accountable those who skirt our environmental laws and jeopardize public health.”
“The failure to properly train asbestos workers and then to issue them false asbestos training certificates places the worker and the general public at an increased risk of asbestos exposure. Today’s sentencing demonstrates that anyone who intentionally violates the law and puts the public at risk will be held responsible for their actions,” said Special Agent in Charge Carfagno.
According to filed documents and court proceedings, the Toxic Substances Control Act regulates asbestos and other toxic substances, as well as the training and certification of professionals who handle such substances. Sanchez was employed with NovaCor Consulting Group, LLC (NovaCor) as an asbestos training coordinator at the company’s Concord, North Carolina location. Pena Lopez also worked for NovaCor as an asbestos abatement supervisor and an asbestos worker trainer accredited in the State of North Carolina. Court documents show that in June 2018, at Sanchez’s direction, Pena Lopez signed certificates of course completion for asbestos worker refresher training for individuals he did not instruct and that did not fulfill the required training. The certificates were submitted to regulators in obtaining asbestos worker licenses. Court documents also show that in July 2018, Sanchez also certified training for attendees at a course that did not meet the requirements for certification.
On March 14, 2022, both Pena Lopez and Sanchez entered their guilty pleas to violations of the Toxic Substances Control Act.
In making today’s announcement, U.S. Attorney King thanked the EPA-CID and the North Carolina Department of Health and Human Services, Health Hazards Control Unit, for their coordination and investigation of the case.
Assistant United States Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Recidivist Sex Offender Is Sentenced to 15 Years for Receiving Child PornographyRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Max O. Cogburn sentenced Blake Forest Watson, 65, of Nebo, N.C., to 180 months in prison on child pornography charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Cogburn ordered Watson 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 Gregory Forest, Chief U.S. Probation Officer of the U.S. Probation Office in the Western District of North Carolina, join U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Watson was previously convicted of child pornography in the Western District of Tennessee and was sentenced to 96 months in prison and five years of supervised release. A condition of Watson’s supervised release involved warrantless searches. On July 22, 2021, federal probation officers conducted a warrantless search at Watson’s residence. Court records show that law enforcement located in the residence an unapproved wireless tablet, the background of which was an image of child pornography depicting a prepubescent minor female. Law enforcement also retrieved a laptop from the residence. A forensic analysis of the electronic devices revealed that Watson had been using them to receive images and videos of child pornography, some of which depicted minors engaging in sadistic and masochistic conduct. In total, Watson possessed in excess of 3,000 images depicting child pornography.
On January 31, 2022, Watson pleaded guilty to receiving child pornography. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked HSI and the U.S. Probation Office for their investigation of the case.
Assistant U.S. Attorney Alexis I. Solheim of the U.S. Attorney’s Office in Asheville 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.
Licensed Firearms Dealer Is Sentenced for Selling A Firearm to A Prohibited PersonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Edward Clyde Ledford, 57, of Lenoir, N.C., a federal firearms licensee (FFL) doing business as Whitnel Outdoorsman and Pawn, for knowingly selling a firearm to a prohibited person, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Brian Mein, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney King in making today’s announcement.
“When a federal firearms dealer sells a gun to a prohibited person, that’s one more illegal firearm in our streets that can be used to commit a crime,” said U.S. Attorney King. “As we continue to intensify our efforts to reduce the risk of guns falling into the wrong hands, we must hold accountable gun sellers who put gain before the safety of our community.”
“Keeping firearms out of the hands of prohibited individuals is the absolute first step towards preventing violent gun crime,” said Acting Special Agent in Charge Mein. “While the vast majority of our licensed firearms dealers are respectful of the laws in place, those that choose to violate those laws and jeopardize public safety will face the consequences.”
According to information contained in court documents and court proceedings, on April 15, 2019, an individual who was prohibited from possessing a firearm entered the Whitnel Outdoorsman and Pawn in Lenoir. Court records show that the individual told a store employee that he was interested in purchasing a firearm but would not pass the background check due to prior felonies on his record. The store employee advised the prohibited individual to “bring a buddy back” to fill out the paperwork.
Court documents state that a few days later, on April 18, 2019, the prohibited individual returned to the store with an undercover ATF agent posing as a friend. This time, the prohibited individual spoke with Ledford and again explained that he wanted to purchase a firearm but could not pass the background check. The prohibited individual also told Ledford that, at the suggestion of a store employee, he had brought someone who could pass the background check, and essentially be the straw buyer for the firearm. Ledford did not object, and, over the course of their exchange, the prohibited individual pointed to the semiautomatic shotgun he wanted to purchase. Ledford handed him the firearm and the prohibited individual paid Ledford in cash for the shotgun. Ledford also gave the undercover agent the ATF Form 4473 to fill out for the background check. Once the form was processed and the sale was completed the prohibited individual took possession of the firearm in the presence of Ledford.
Ledford was sentenced to two years of probation and five months of home detention, after pleading guilty to selling a firearm to a prohibited person on November 30, 2021.
U.S. Attorney King credited the ATF for the investigation of this case.
Assistant United States Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte handled the prosecution for the government.
Hendersonville Man Is Sentenced to 20 Years in Prison for Producing Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Jordan Taylor Randall, 39, of Hendersonville, N.C. was sentenced to 20 years in prison for producing child pornography. Randall was also ordered to register as a sex offender and to serve the rest of his life under court supervision after he is released from prison. Chief U.S. District Judge Martin Reidinger also ordered Randall to have no contact with the victims of his offenses.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Blair Myhand of the Hendersonville Police Department join U.S. Attorney King in making today’s announcement.
On November 5, 2021, Randall pleaded guilty to production of child pornography. According to filed documents and statements made in court, in August 2020, law enforcement became aware of Randall’s production of child pornography after it was reported by family members. Law enforcement retrieved multiple electronic devices from Randall’s home and storage unit, including a cell phone, a laptop, cameras disguised to look like aerosol cans, and external electronic storage devices. A forensic analysis of the devices revealed that, on multiple occasions, Randall had secretly recorded videos of two prepubescent minor females while they were undressed or partially undressed in the bathroom and shower. Randall also possessed more than 200,000 images and videos of child pornography, some of which depicted children as young as infants being sexually abused.
Randall is currently in federal custody. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked HSI and the Hendersonville Police Department for their 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.
Former Wells Fargo Employee Is Sentenced to 70 Years in Prison for Production and Possession of Child PornographyRead the Press Release
CHARLOTTE, N.C. – A former Wells Fargo Information Technology employee was sentenced to 70 years in prison today on child pornography charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Michael Scott Hoover, 52, of Wilkesboro, N.C., will also be subject to a lifetime of supervised release and must register as a sex offender upon his release from prison. Hoover was also ordered to pay special assessments totaling $132,300.
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), and Sheriff Chris Shew of the Wilkes County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
“Hoover is a predator who exploited innocent children entrusted in his care for his sexual gratification. I commend the prosecutors and investigators who worked hard on this case to ensure that Hoover is held accountable for his repugnant conduct. Thanks to their efforts, Hoover will spend decades behind bars, serving the longest prison sentence ever imposed on a child predator in this district,” said U.S. Attorney King.
“Our investigation, and the subsequent trial, have proven that Hoover is a serial child predator who stole the innocence of multiple young victims. Thanks to a thorough investigation by HSI and our partners, he was mistaken in his belief that his technical knowledge could be used to mask his criminal activity. With today’s sentence, he will be held fully accountable for his heinous crimes and will be prevented from harming another innocent child,” said Special Agent in Charge Martinez.
“This case exemplifies the exceptional collaboration between the U.S. Attorney’s Office for the Western District of North Carolina and HSI, the Wilkes County Sheriff’s Office and our Computer Crimes Unit. I applaud the excellent work of all those involved to bring this individual to justice. I especially want to thank Project Safe Childhood for bringing this matter to the attention of law enforcement. Let the message be crystal clear, the North Carolina State Bureau of Investigation’s Computer Crimes Unit will work relentlessly to bring justice to those who would victimize the most vulnerable segment of our population,” said Director Schurmeier.
“The sentence today sends a clear message that these types of despicable acts will not be tolerated. The innocence of our youth should never be violated and the community is a safer place today. I want to thank the federal prosecutors and all the investigative agencies for their great work on this case,” said Sheriff Shew.
According to filed court documents, evidence presented at trial and witness testimony, between June 2018 and August 2019, Hoover used his work cell phone to produce images and videos of two minor males, as young as 12-years-old, engaging in sexually explicit conduct. The child pornography was found on Hoover’s work cell phone during an internal investigation by Wells Fargo, where Hoover was employed at the time. Upon discovering the child pornography, Wells Fargo immediately reported its findings to law enforcement.
According to information presented at today’s sentencing hearing, in addition to producing child pornography, Hoover sexually abused at least eight minors over the course of more than 10 years. Some of the abuse occurred at Hoover’s home and vehicle, and during camping and other overnight trips Hoover had volunteered to take the victims as a chaperone.
A federal jury found Hoover guilty of two counts of production of child pornography and one count of possession of child pornography. Hoover is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended the investigative work of HSI, SBI, and the Wilkes County Sheriff’s Office.
The prosecution for the government was handled by Assistant U.S. Attorneys Stephanie Spaugh and Cortney Randall.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Florida Man Is Found Guilty in Connection with A Business Email Compromise SchemeRead the Press Release
CHARLOTTE, N.C. – A federal jury has convicted Pierre Yvelt Almonor, 49, of Miami Gardens, Florida, for his role in a conspiracy to launder illegal proceeds from a business email compromise scheme that defrauded law firms and other companies of more than $1 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Almonor was convicted of engaging in a money laundering conspiracy to commit concealment money laundering, international concealment money laundering, and transactional money laundering.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
A business email compromise scheme, or BEC, is a sophisticated scam, often targeting businesses involved in wire transfer payments. The fraud is carried out by fraudsters compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques, to cause employees of the victim company or other individuals involved in legitimate business transactions to transfer funds to accounts controlled by the scammers.
According to trial evidence, witness testimony and documents filed with the court, from August 2014 through November 2017, as part of the money laundering conspiracy, Almonor arranged to have nearly $395,000 in real estate closing proceeds stolen through a BEC deposited in a business account over which he exercised control, utilizing it as a “money mule” bank account. Money mule bank accounts are accounts used by fraudsters as a pass-through means of moving fraudulently obtained funds. Almonor then facilitated wires to Spain and South Africa totaling more than $200,000 and withdrew more than $50,000 in proceeds as compensation for his role in the conspiracy.
Almonor remains on bail pending sentencing. A sentencing date has not been set. The money laundering conspiracy charge carries a maximum sentence of 20 years, and a fine of $500,000 or twice the value of the proceeds.
Ugo Ernest Uzomba previously pleaded guilty to money laundering conspiracy and is awaiting sentencing.
The FBI investigated the case. Assistant U.S. Attorneys Maria K. Vento and Matthew T. Warren of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Federal Judge Sentences Convicted Felon to 10 Years in Prison for Possession of Ammunition and A Firearm During A Domestic Violence IncidentRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Dana Dean Fetherson, 44, of Waxhaw, N.C., was sentenced to 120 months in prison and three years of supervised release for possession of ammunition and a firearm by a convicted felon.
Brian Mein, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney King in making today’s announcement.
According to filed documents and information presented in court, on April 3, 2020, an individual identified in court documents as J.B. called 911 to report that her ex-boyfriend, Fetherson, had “busted out” all the windows of her vehicle with an assault rifle, and had pointed a gun at her and threatened to kill her. Fetherson was arrested on state charges in connection with this incident.
Court records show that on October 7, 2020, Fetherson went to J.B.’s house and shot at J.B. and her mother. J.B. sustained an injury to her wrist and her mother was injured by shrapnel. Fetherson was indicted by a federal grand jury in February 2021. When law enforcement served Fetherson with the federal arrest warrant, they found a firearm and drugs in the defendant’s pocket. According to court records, Fetherson has prior criminal convictions and he is prohibited from possessing a firearm or ammunition.
On December 16, 2021, Fetherson pleaded guilty to possession of ammunition and a firearm by a convicted felon. He is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked ATF and CMPD for their investigation of the case.
Assistant U.S. Attorney Kimlani Ford, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charlotte Business Owners Are Indicted for Selling Stolen iPhones to Domestic and International BuyersRead the Press Release
CHARLOTTE, N.C. – Two Charlotte business owners, Hamzeh Jamal Alasfar, 30, and Tayseer Issam Alkhayyat, 34, both of Charlotte, are facing federal charges for allegedly selling fraudulently obtained Apple iPhones (iPhones) and other electronic devices to domestic and international buyers, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Reginald DeMatteis, Special Agent in Charge of the United States Secret Service (USSS), Charlotte Field Office, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to allegations contained in the indictment, Alasfar and Alkhayyat owned multiple businesses located in Charlotte, including Cellport International Inc. (Cellport) and D Town Wireless (D Town). Cellport had an additional location in Florida. The indictment alleges that, as early as 2013 and continuing through January 2020, Alasfar and Alkhayyat purchased thousands of stolen and fraudulently obtained iPhones and other electronic devices, which they then sold and shipped to buyers in other states and in foreign countries.
As alleged in the indictment, Alasfar and Alkhayyat obtained the fraudulently obtained devices from multiple “boosters” and “vendors.” A booster is a person who obtains goods and products through theft or other fraudulent means and sells them for profit. A vendor is a person who collects stolen and fraudulently obtained products from boosters and sells them in bulk. The indictment alleges that Alasfar and Alkhayyat’s businesses were known to boosters and vendors in the area as places they could sell stolen and fraudulently obtained devices, including new in-the-box iPhones.
As alleged in the indictment, between January 2019 and January 2020, the defendants sold and shipped through Cellport more than 20,000 new iPhones. The defendants allegedly knew that many of these iPhones had been stolen or obtained by fraud. During the same time frame, Cellport’s bank account, which was controlled by Alasfar and Alkhayyat, allegedly received more than $15 million in wire transfers, many of which came from new iPhone buyers and freight-forwarding services located abroad, including a company in the United Arab Emirates.
Alasfar and Alkhayyat are charged with conspiracy to transport stolen and fraudulently obtained goods in interstate commerce, which carries a maximum sentence of five years in prison and a $250,000 fine, and two counts of interstate and foreign transportation of stolen property, which carry a maximum prison sentence of 10 years and a $250,000 fine per count.
The charges contained in the indictment are allegations and the defendants are innocent until proven guilty beyond reasonable doubt in a court of law.
Alasfar and Alkhayyat will be ordered to appear on a summons for their initial appearances, which will be scheduled in federal court in Charlotte.
This case was the result of the investigative efforts of CMPD and the Secret Service, which have established a fully integrated partnership to combat the most significant organized criminal groups operating in Charlotte. Through this partnership, this unit has successfully leveraged local and federal resources, personnel, expertise and authorities to identify and combat the criminals and criminal organizations that have the largest negative impact on the community.
Assistant U.S. Attorneys William Bozin and Michael E. Savage of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Carfentanil Trafficker Is Sentenced to More Than Nine Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Miguel Angel Gonzalez-Perez, a/k/a Fernando Contreras Gonzalez, 54, of Mexico, was sentenced today to 97 months in prison and three years of supervised release for trafficking carfentanil, 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 Joseph D. Ramey of the Gaston County Police Department join U.S. Attorney King in making today’s announcement.
According to the DEA, carfentanil is a synthetic opioid generally used as a tranquilizing agent for elephants and other large mammals. Carfentanil is approximately 10,000 times more potent than morphine and 100 times more potent than fentanyl. The presence of carfentanil in illicit U.S. drug markets is cause for grave concern, as the relative strength of this drug can lead to increased overdoses and overdose-related deaths. Carfentanil also poses a significant threat to everyone who may come in contact with this substance due to accidental exposure, including first responders and law enforcement personnel.
According to court documents and statements made in court, on May 1, 2020, law enforcement in Gaston County conducted a traffic stop of the vehicle Gonzalez-Perez was driving. Over the course of the traffic stop, law enforcement found more than two kilograms of carfentanil hidden in a shoebox inside the vehicle. The approximate street value of the carfentanil seized is $175,000. Court records show that Gonzalez-Perez had traveled to Atlanta to obtain the carfentantil and was headed back to Western North Carolina when he was intercepted by law enforcement.
On November 16, 2021, Gonzalez-Perez pleaded guilty to possession with intent to distribute carfentanil and aiding and abetting.
The DEA and the Gaston County Police Department investigated the case.
Assistant U.S. Attorney Taylor G. Stout of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Methamphetamine Trafficker Is Sentenced to More Than 19 Years in Federal PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Timothy Wayne Bates, 51, of Dallas, N.C., to 235 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.
According to filed documents and court proceedings, in August 2020, Bates possessed methamphetamine on three occasions. On August 5, 2020, law enforcement encountered Bates at the parking lot of a hotel in Gaston County, where Bates was found to be in possession of methamphetamine and a firearm. On the same day, law enforcement also recovered additional methamphetamine and $3,500 in cash Bates had attempted to discard near the hotel. On August 14, 2020, law enforcement conducted a traffic stop of the vehicle Bates was driving. Over the course of the stop, law enforcement seized methamphetamine and over $4,000 in cash. Then on August 19, 2020, law enforcement arrested Bates at a hotel in Pineville, North Carolina, after recovering methamphetamine and more than $1,900 in cash.
On June 17, 2021, Bates pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine and three counts of possession with intent to distribute methamphetamine. At today’s sentencing hearing, Bates’s sentence was enhanced due to his multiple prior convictions of felony Breaking and Entering, Embezzlement, Grand Larceny, Possession of Methamphetamine, Receiving Stolen Goods, and Possession with Intent to Distribute Methamphetamine.
This case is the result of the Organized Crime Drug Enforcement Task Force (OCDETF) operation, which has led to the federal prosecution of more than 60 individuals for drug trafficking. Law enforcement have also seized more than 87 kilograms of narcotics, including over 24 kilograms of fentanyl, 66 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 Huntersville Police Department, the Gastonia Police Department, and the Dallas Police Department for their coordination and investigation of the case.
Assistant United States Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
U.S. Attorney's Office Resolves Civil Forfeiture Litigation Involving Charlotte Strip MallRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office announced today the resolution of a civil forfeiture case involving a strip mall located at 1533 West Blvd, near the corner of West Boulevard and Remount Road in Charlotte.
In making todays’ announcement U.S. Attorney Dena J. King said, “For years, rampant drug dealing and drug-fueled crimes took place on the premises of this strip mall, which impacted surrounding neighborhoods. Partnering with local law enforcement to increase the safety of our communities is one my Office’s highest priorities. I want to thank the Charlotte Mecklenburg Police Department for their work in this case and for their ongoing efforts to keep our streets safe.”
In April 2021, the U.S. Attorney’s Office filed a civil forfeiture complaint against the commercial property, alleging that, for years, the property had been the site of significant volume of drug trafficking and other crimes, including 14 shootings since March 2017. Since the filing of the civil action, reported criminal activity has greatly decreased, going from recurrent shootings, assaults, and robberies to no reported violent crime on the property. In addition, 28 total calls for service were reported by the Charlotte Mecklenburg Police Department after the complaint was filed, compared to thousands of service calls received in years prior.
During the pendency of the litigation, the City of Charlotte (the City), pursuant to its Corridors of Opportunity Program, offered to purchase the property from its owners and to implement improvements consistent with the West Boulevard Corridor Vision. The U.S. Attorney’s Office has entered into an agreement with the City to dismiss the forfeiture action, and, as part of the agreement, the City has agreed to take short and long-term crime prevention measures at the property to ensure it no longer poses a threat to the residents of the community.
Assistant U.S. Attorneys Seth Johnson and Benjamin Bain-Creed, of the U.S. Attorney’s Office in Charlotte, handled the forfeiture proceedings, with the investigative support of the Drug Enforcement Administration and the Westover Division and Special Investigations Unit of the Charlotte Mecklenburg Police Department.
U.S. Attorney Dena J. King Pays Tribute to Fallen Law Enforcement Officers in Observance of National Police WeekRead the Press Release
CHARLOTTE, N.C. – In observance of National Police Week, United States Attorney Dena J. King recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement and pays tribute to the officers who have fallen in the line of duty. This year, the week is observed Wednesday, May 11 through Tuesday, May 17, 2022.
“This week, we gather to pay tribute to the law enforcement officers who sacrificed their lives in service to our country,” said Attorney General Merrick B. Garland. “We remember the courage with which they worked and lived. And we recommit ourselves to the mission to which they dedicated their lives. On behalf of a grateful Justice Department and a grateful nation, I extend my sincerest thanks and gratitude to the entire law enforcement community.”
“Each and every day, our brave men and women in law enforcement do their best to protect us from harm and apprehend those who violate the law, so that our communities can be safe and continue to grow stronger and more just. National Police Week is an opportunity to recognize our federal, state, local and Tribal law enforcement officers for their courage, dedication and commitment to serving their fellow citizens, and to pay tribute to the fallen officers who laid down their lives for us. It is also a time to extend our gratitude and support to our fallen heroes’ families and loved ones, and to reaffirm our commitment to all those who wear the badge and serve our communities with honor and dignity,” said U.S. Attorney King.
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), 472 law enforcement officers died nationwide in the line of duty in 2021, of which 319 succumbed to COVID-19. Eight officers have died in the line of duty in the Western District of North Carolina.
The names of the 619 fallen officers added this year to the wall at the National Law Enforcement Officer Memorial will be read on Friday, May 13, 2022, during a Candlelight Vigil in Washington, D.C., starting at 8:00 PM EDT. Those who wish to view the vigil live online, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/TheNLEOMF. The schedule of National Police Week events is available on NLEOMF’s website.
Federal Jury Finds Convicted Child Molester Guilty of Naturalization FraudRead the Press Release
CHARLOTTE, N.C. – A federal jury returned a guilty verdict late yesterday against Kheungkham Vongphakdy, 47, of Charlotte, for unlawful procurement of citizenship, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell presided over the trial.
U.S. Attorney King is joined in making today’s announcement by Jarvis McMillar, Acting Field Office Director of the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO).
Vongphakdy was a native and citizen of Laos, but on August 3, 2011, he became a naturalized U.S. Citizen. According to filed documents, evidence presented at trial, and witness testimony, Vongphakdy obtained his U.S. citizenship fraudulently, by providing materially false information on his citizenship application. Trial evidence established that, during the naturalization process, Vongphakdy lied about his criminal history, and failed to admit that, on numerous occasions in November 2008 and October 2009, he had committed criminal sexual acts with a child victim under the age of 13.
Specifically, on March 7, 2011, Vongphakdy submitted an Application for Naturalization (form N-400) to the United States Citizenship and Immigration Services (CIS). He answered “No” to Question 15, “Have you ever committed a crime or offense for which you were not arrested?” On August 3, 2011, Vongphakdy appeared in person at the CIS office in Charlotte and participated in a naturalization ceremony. He was granted U.S. citizenship and received a Certificate of Naturalization. This occurred approximately three years after he sexually molested a child victim. At the time Vongphakdy was going through the naturalization process immigration officials were not aware of his crimes. Vongphakdy admitted to this criminal conduct on April 4, 2014, when he pleaded guilty to two counts of second-degree sexual offense in the Superior Court of North Carolina in Mecklenburg County. He was ordered to serve 116 to 158 months in prison and to register as a sex offender.
Vongphakdy is currently in federal custody. The maximum penalties for the charge of unlawful procurement of citizenship are 10 years in prison and a $250,000 fine. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King thanked ICE-ERO for their investigation of the case and credited Operation False Haven which led to Vongphakdy’s conviction. False Haven is an initiative by ICE-ERO to identify child molesters and other egregious individuals who fraudulently obtained U.S. citizenship.
Assistant U.S. Attorneys Kenneth Smith and Katherine Armstrong of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
U.S. Attorney's Office Observes National Crime Victims' Rights Week & Hosts Ceremony to Honor Contributions to Crime Victims' RightsRead the Press Release
CHARLOTTE, N.C. – Each year in April, the Department of Justice and the United States Attorney’s Office for the Western District of North Carolina observe National Crime Victims’ Rights Week (NCVRW), by taking time to honor victims of crime and those who advocate on their behalf.
Throughout this week, the U.S. Attorney’s Office joins federal, state, local and Tribal law enforcement agencies, service providers, victim advocates and other allied professionals in remembering and honoring victims lost to violence and survivors of violence. This year’s observance, which takes place April 24-30, with the theme “Rights, Access, Equity for all Victims,” underscores the importance of assisting crime survivors find their justice by enforcing victims’ rights, expanding access to services, and ensuring equity and inclusion.
To commemorate NCVRW, the U.S. Attorney’s Office hosted an awards ceremony today, to honor outstanding individuals for their dedication to the cause of justice and for their support and service to crime victims.
“This week highlights the importance of promoting equal access to services for crime victims and ensuring that our criminal justice system supports all aspects of victims’ healing and recovery throughout the legal process and beyond,” said U.S. Attorney Dena J. King. “The individuals honored today were selected for their work in delivering justice to victims and their loved ones. Their work serves as a reminder that what we do impacts countless lives. I am grateful for the honorees’ contributions and I am proud of their work in ensuring that each and every crime victim in Western North Carolina receives the assistance and justice they need and deserve.”
Following is a list of the 14 award recipients who were nominated by their colleagues and selected by U.S. Attorney King:
Outstanding Law Enforcement Award
- Special Agent Klarissa Zaffark – Homeland Security Investigations
- Captain Errol Wedra – Mint Hill Police Department
- Captain Marnee Moberg – Mint Hill Police Department
- Criminal Analyst John White – Mint Hill Police Department
Outstanding Criminal Justice Professional Award
- Assistant U.S. Attorney Alexis Solheim
- Assistant U.S. Attorney Kenneth Smith
- Assistant U.S. Attorney Caryn Finley
- Assistant U.S. Attorney Benjamin Bain-Creed
- Assistant U.S. Attorney Julia Wood
Outstanding Support Staff Award
- Legal Assistant Robert Cassidy
- Legal Assistant Stacey Clickner
- Legal Administrative Specialist Shafia Rangoonwala
- Paralegal Lisa Shenton
Outstanding Victim Survivor Award
- Arist (Art) Doumtjes
U.S. Attorney King thanked the honorees for their outstanding dedication and service in working with crime victims and noted the important role each honoree has played in delivering justice and providing victims with the support they need in the aftermath of crime.
Throughout the nation, and in the Western District of North Carolina, victim advocacy organizations, community groups and state, local, and Tribal agencies host rallies, candlelight vigils, and other events during NCVRW, to raise awareness of victims’ rights and services. The Office for Victims of Crime (OVC) leads communities in their annual observances of NCVRW by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year, several national events are returning in-person, but will continue to feature livestream feeds. On Thursday, April 28, 2022, a candlelight vigil will be held on the National Mall near the U.S. Capitol from 6:30 p.m. to 7:30 p.m. On Friday, April 29, 2022, the National Crime Victims’ Service Awards Ceremony will be held at Constitution Gardens National Park on the National Mall from 3:00 p.m. to 5:00 p.m. To access a livestream feed for either event, please visit ovc.ojp.gov/live.
OVC and the U.S. Attorney’s Office encourages widespread participation in the week’s events and in other victim-related observances throughout the year. For additional information about this year’s National Crime Victims’ Rights Week and how to assist victims in your community, please visit OVC’s website at www.ovc.gov. For ongoing updates from OVC and ideas throughout the year on how you can support victims, please subscribe to OVC’s email notifications at https://ovc.ncjrs.gov/ncvrw/subscribe/.
Founders of Fake "Hedge Fund" Plead Guilty to Federal Charges for Orchestrating A $4 Million Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – The founders of a fake “hedge fund” appeared in court today and pleaded guilty to federal charges for orchestrating a $4 million Ponzi scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Austin Delano Page, 26, of Grover, N.C., pleaded guilty to wire fraud, and Brandon Alexander Teague, 26, of Belmont, N.C., pleaded guilty to securities fraud. U.S. Magistrate Judge David C. Keesler accepted the defendants’ guilty pleas.
North Carolina Secretary of State Elaine F. Marshall, Robert R. Wells, 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 plea documents and the plea hearings, from October 2020 to December 2021, Page and Teague engaged in an investment scheme that defrauded hundreds of investors, some of whom were at or near retirement age, of more than $4 million. Court documents show that the defendants falsely represented to victims that Page and Teague were running a hedge fund in Kings Mountain, N.C., D&T Investment Group (D&T), 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. In fact, prior to orchestrating the investment scheme the defendants sold campers.
According to court documents and admissions made in court, Page and Teague required investors to 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 and Teague sent victim investors monthly statements that reflected fictitious trading gains. When certain investors and D&T employees 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. For example, Page created a fake screenshot of a D&T brokerage account that reflected a balance of over $16,000,000, when in reality the account had a balance of less than $7.00.
Contrary to representations made to victims, their money was not generally invested in securities. In addition to making Ponzi payments to investors, a significant portion of the funds was used to pay excessive salaries and other compensation to D&T employees, including to members of Page’s family. For example, Page paid several D&T employees annual salaries of over $100,000 and also paid certain employees several thousand dollars each for getting the D&T company logo tattooed on their bodies. The defendants also squandered victims’ money on personal expenses such as clothing, jewelry, travel, luxury car rentals, and to make cash withdrawals.
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 pair was arrested on New Year’s Eve at JFK Airport in New York upon their voluntary return to the United States.
The defendants were released on bond with home detention and location monitoring following the plea hearings. Page pleaded guilty to one count of wire fraud, which carries a maximum prison term of 20 years and a $250,000 fine. Teague pleaded guilty to one count of securities fraud, which carries a maximum prison term of five years and a $250,000 fine. A sentencing date for the defendants has not been set.
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, is in charge of the prosecution.
Two Men Are Facing Federal Charges in Connection with Multi-Million Dollar Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Two Cornelius, North Carolina residents are facing federal charges in connection with a multi-million dollar investment scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. A federal grand jury returned a criminal indictment this week against Marlin Hershey and Dana Bradley, both 52, charging them with mail and wire fraud conspiracy, mail fraud, securities fraud, and money laundering conspiracy. The indictment was unsealed this morning following Hershey’s appearance in court.
North Carolina Secretary of State Elaine F. Marshall and Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, join U.S. Attorney King in making today’s announcement.
According to allegations contained in the indictment, from approximately 2009 to 2021, Hershey and Bradley induced dozens of victims to invest millions of dollars in unregistered securities offerings, promoted by the defendants through Performance Holdings and other entities controlled by the defendants and other individuals, including Performance Retire on Rentals, LLC, Distressed Lending Fund, LCC, Moteng Funding, LLC and Southeast Lot Acquisitions, LLC, among others.
The indictment alleges that the investment materials Hershey and Bradley provided to victim investors in connection with these securities offerings contained false and/or misleading statements and failed to disclose material information. For example, the indictment alleges that the offering materials failed to disclose that the defendants received commissions based on the amount of investments they sold, and often provided investors with offering materials that represented the opposite – that nobody would be paid a commission in connection with the investments. In fact, the indictment alleges, the defendants received commissions that were typically 10% of an investor’s initial investment and often received an additional commission when an investor extended an investment. In this manner, Hershey and Bradley were paid millions of dollars in undisclosed commissions from the sale of securities. In addition to the commissions, the indictment also alleges that the defendants received regular undisclosed “management” fees from the various entities.
According to allegations in the indictment, as part of the scheme, Hershey and Bradley also failed to disclose to investors other material information, including negative information about the defendants’ backgrounds and the financial woes faced by some of the entities for which they were soliciting investments. To the contrary, because the defendants often solicited the same group of investors to invest in the various projects, the defendants took steps to conceal such financial difficulties by making undisclosed loans to various entities so that the entities could, in turn, make their required interest payments to investors. The indictment also alleges that Hershey and Bradley solicited new investors and, contrary to representations they made to the investors, used the new investors’ money to repay the loans and previous investors. The defendants also allegedly sent to investors periodic reports about the status of the investments that failed to include material negative information.
According to the indictment, in 2019, investors learned that several of the projects in which they had invested were in financial distress and could no longer meet their obligations to investors, which totaled several million dollars.
Hershey was released on bond following his court hearing. Bradley will have his first court appearance on Monday, April 25, 2022. The mail and wire fraud conspiracy charge and the mail fraud charge each carry a maximum prison term of 20 years and a $250,000 fine. The securities fraud charge carries a maximum prison term of 20 years and a $5 million fine. And the maximum prison term for money laundering conspiracy charge is 10 years and a $500,000 fine.
The indictment also includes a notice of forfeiture, which gives notice that the defendants must forfeit to the United States all of the property involved in the offenses charged in the indictment. The government will pursue a forfeiture money judgment in the amount of at least $7.5 million which the government contends constitutes the proceeds of the violations alleged in the indictment.
All the charges contained in the indictment are allegations. The defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney King thanked the Securities Division of the North Carolina Secretary of State and the FBI for leading the joint investigation.
Assistant U.S. Attorneys Daniel Ryan and Graham Billings, of the U.S. Attorney’s Office in Charlotte, are in charge of the prosecution.
Georgia Fugitive Is Sentenced to 13 Years for Drug TraffickingRead the Press Release
ASHEVILLE, N.C. – Today, Chief U.S. District Judge Martin Reidinger sentenced James Julius Lumpkin, of Sevierville, Tennessee, to 156 months in prison and five years of supervised release for drug trafficking, 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 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, Jamaal Thompson Commander of the U.S. Marshals Service Carolinas Regional Fugitive Task Force, and Sheriff Chip Hall of the Jackson County Sheriff’s Office.
According to filed court documents and the sentencing hearing, in November 2020, the U.S. Marshals Service Carolinas Regional Fugitive Task Force learned that Lumpkin, a fugitive with outstanding arrest warrants in Georgia for trafficking narcotics, was located in Jackson County. Law enforcement learned that Lumpkin was staying at a local motel in Cullowhee, North Carolina, and proceeded to plan the arrest. On November 6, 2020, a team of federal and local law enforcement arrested Lumpkin while he was sitting in his van at the motel parking lot. At the time of the arrest, law enforcement seized from the van multiple plastic bags containing methamphetamine, digital scales, two loaded firearms, and ammunition. Law enforcement also recovered at the scene marijuana and prescription opioid pills.
On November 1, 2021, Lumpkin pleaded guilty to possession with intent to distribute methamphetamine, marijuana and Hydrocodone. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King credited the U.S. Marshals Service Carolinas Regional Fugitive Task Force, the DEA’s Asheville Post of Duty and the Jackson County Sheriff’s Office for the investigation of this case.
Assistant United States Attorney Thomas Kent, of the United States Attorney’s Office in Asheville, prosecuted the case.
Federal Civil Complaint Seeks the Forfeiture of Funds Stolen from A California-Based Business and Transferred by Money MulesRead the Press Release
Charlotte, N.C. Today, U.S. Attorney Dena J. King announced the filing of a federal civil complaint seeking the forfeiture of $597,891.46, seized as part of an investigation of at least three individuals operating as money mules responsible for transferring over $1.2 million in funds stolen from a business located in San Diego, California.
Reginald DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.
A money mule is a person who, at the direction of another individual or criminal organization, transfers illicit funds typically acquired through fraud. Sometimes money mules are innocent victims unaware they are implicated in criminal activity. Other times, money mules maybe aware, or come to realize but ignore, that they are assisting a fraudster with illegal money movement activities.
“Money mules are quickly becoming the preferred method criminal networks use to transfer illicit funds. These networks, operating within the U.S. and overseas, target individuals online via romance scams, business scams, or otherwise, and turn them into money mules doing the criminals’ dirty work,” said U.S. Attorney King. “We are doing our part to cut off the flow of funds to criminal organizations, but we also need the public’s help in this effort. Be wary of anyone who contacts you online and asks you to use your bank account to move money. You could be putting in thieves’ pockets money stolen from victims of fraud.”
As alleged in the filed complaint, the U.S. Secret Service previously seized $597,891.46 from the account of Theresa Harlow, an elderly woman located in California. The complaint alleges that Harlow and at least two other individuals, identified in court documents as Money Mule 1, and Money Mule 2, allegedly moved the fraud proceeds through four different financial institutions and via multiple transactions involving checks and wires. The indictment further alleges that when law enforcement began investigating the movement of the money, the three money mules reported that they became involved when individuals reached out to them online about moving money and believed the purpose of the money transfers was to assist in business transactions and/or movement of an inheritance. In reality, as alleged in the complaint, the money the mules were moving belonged to a California business that had been defrauded.
In making today’s announcement, U.S. Attorney King thanked the U.S. Secret Service for their investigative work in this case.
Assistant United States Attorney Benjamin Bain-Creed of the United States Attorney’s Office in Charlotte is in charge of the civil proceedings.
To learn more about the Department of Justice’s Money Mule Initiative and to receive more information on how to protect yourself and others please visit: https://www.justice.gov/civil/consumer-protection-branch/money-mule-initiative
Convicted Arsonist Is Sentenced to Prison for Mailing Threatening Letters to A WitnessRead the Press Release
ASHEVILLE, N.C. – Clinton Douglas Cole, 55, of Caroleen, N.C., was sentenced to 24 months in prison and three years of supervised release today, for mailing threatening letters to a witness, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Martin Reidinger presided over the sentencing hearing.
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.
According to filed documents and court proceedings, in October 2015, an individual witnessed the defendant set fire to a residence in Rutherford County. The defendant was convicted of state charges related to the arson and was sentenced to prison. Court documents show that in January 2020, while Cole was still serving time in prison for the state conviction, he mailed two threatening letters to the witness. In one letter, Cole reminded the witness of a previous threat he made to burn down the witness’s house. In a second letter, Cole wrote to the witness, “You are going to wish that you would not have stuck your nose were [sic] it did’nt [sic] belong,” and threatened to physically harm the witness and the witness’s child. On December 22, 2021, Cole pleaded guilty to mailing threatening communications.
The investigation was handled by USPIS. Assistant U.S. Attorney Alexis Solheim, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
U.S. Attorney Dena J. King Announces New Civil Rights TeamRead the Press Release
CHARLOTTE, N.C. – United States Attorney Dena J. King announced today the formation of a new Civil Rights Team within the U.S. Attorney’s Office, which will focus on prioritizing the enforcement of federal civil and criminal civil rights laws across Western North Carolina and enhance the Office’s presence in the community through increased education and community outreach efforts.
“Our role as federal prosecutors is to ensure that equal protection under the law is a reality for all people living in the Western District of North Carolina,” said U.S. Attorney King. “The Civil Rights Team was established to prioritize the investigation of potential violations of civil rights statutes, ensure that allegations of wrongdoing are thoroughly investigated, and bring criminal charges and civil enforcement actions when warranted. Communities thrive only when fairness and equality are a reality for all people, and everyone can have equal opportunities, live free from hate, exercise the right to vote without fear, have access to equal justice, and enjoy all the protections guaranteed by federal law. When those fundamental principles are threatened or violated, it is our duty to act.”
The Civil Rights Team comprises federal prosecutors and staff from the Office’s Criminal and Civil Divisions in Charlotte and in Asheville. U.S. Attorney King has appointed a Criminal Civil Rights Coordinator to lead the Team’s efforts in investigating and prosecuting criminal civil rights violations, including hate crimes, color of law violations, and human trafficking cases. U.S. Attorney King also appointed a Civil Civil Rights Coordinator, who is tasked with prioritizing civil enforcement actions related to discrimination in housing, lending, employment, and education and the protection of voting rights and disability rights or access, among other areas. The team will continue to foster a strong relationship with the Justice Department’s Civil Rights Division and coordinate with other Department of Justice components and federal agencies as needed.
In addition to enforcement efforts, the Civil Rights Team will enhance the District’s multi-prong approach to advancing the protection of civil rights by focusing on public awareness and increasing the Office’s presence in the community through engagement, to encourage reporting of potential civil rights violations to the appropriate offices, agencies or components. The Team will also enhance its prevention efforts by working with state and local agencies, law enforcement, community groups, advocates, stakeholders and public and private entities to conduct proactive training to educate stakeholders on their rights and obligations under the law.
“Putting the enforcement of civil rights at the forefront of our priorities brings us a step closer to our nation’s founding ideals of equal justice and equal opportunity for everyone,” said U.S. Attorney King. “I’m looking forward to the work of our Civil Rights Team in this important area of the law and fulfilling the Justice Department’s responsibility of ensuring equal protection for all.”
Asheville Man Is Sentenced to More Than Six Years in Prison for Illegal Gun Possession, After Using Straw Buyer to Obtain A FirearmRead the Press Release
ASHEVILLE, N.C. – Travis Shaqwann Fair, 32, of Asheville, was sentenced to 80 months in prison and three years of supervised release today for illegal possession of a firearm, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Fair’s girlfriend and co-defendant, Kourtney Nichelle Shivers, 29, of Asheville, was also sentenced to a probationary term of one year for straw purchasing Fair’s firearm.
U.S. Attorney King is joined in making this announcement by Brian Mein, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief David Zack of the Asheville Police Department (APD).
“Convicted felons who try to circumvent our gun laws and straw buyers who knowingly put guns in the hands of prohibited persons will be subject to federal prosecution,” said U.S. Attorney King. “Gun violence is a grave threat to our communities and we will hold accountable everyone involved in illegal firearm purchasing schemes.”
“Illegal firearm possession is a serious threat to public safety,” said Acting Special Agent in Charge Mein. “Removing firearms from the hands of dangerous and prohibited individuals, while also focusing on those who provide them with their firearms, will continue to be a top priority for ATF as we focus our efforts on creating safer communities.”
“The Asheville Police Department supports a citizen’s right to legally purchase and own a firearm,” said Chief Zack. “However, we fully intend to enforce existing gun laws and keep firearms out of the hands of felons and criminals. Stopping gun violence is a top priority of our department and partnering with other law enforcement agencies amplifies our efforts to keep our communities safe.”
According to court documents and court proceedings, on June 10, 2019, Fair visited a licensed firearms dealer in Asheville and consulted with a store employee about purchasing a “cheap” firearm. The store employee showed Fair several firearms, including a 9mm firearm, and Fair left the store shortly thereafter without making a purchase. According to court documents, a short while later, Fair’s girlfriend, Shivers, entered the same store and purchased the same firearm Fair had recently examined. Over the course of the transaction, Shivers falsely certified on the required forms that she was the actual buyer of the firearm, when, in reality, she was a straw purchaser who bought the handgun at Fair’s request and for his use. Court records show that Fair provided Shivers with the funds to purchase the firearm, which she agreed to do, even though Shivers was aware that Fair had prior convictions and was prohibited from possessing a firearm. Shivers later transferred the firearm to Fair.
Shivers previously pleaded guilty to making a false representation while buying a firearm. Fair pleaded guilty to possession of a firearm by a felon. Fair is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the ATF and the Asheville Police Department for their investigation. The U.S. Attorney’s Office in Asheville prosecuted the case.
Charlotte Man Is Sentenced to Nine Years for Possession of A Firearm by A FelonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Laverne Jacobs, 30, of Charlotte, to 108 months in prison and three years of supervised release for possession of a firearm by a convicted felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King is joined in making this announcement by Brian Mein, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD).
According to filed court documents and statements made in court, on June 28, 2020, a man called 911 and alerted dispatchers that Jacobs was in front of his house, that Jacobs threatened to shoot him in the head, and that he observed Jacobs putting bullets into a firearm. A CMPD officer dispatched to the scene heard gunshots while she was approaching the victim’s residence and saw Jacobs with a firearm in his hand. As the officer approached the defendant, he fled the scene and threw the firearm into the woods. CMPD officers apprehended Jacobs and recovered the firearm, which was loaded with one round of ammunition in the chamber. Officers also located two projectile holes in the victim’s residence. At the time of the shooting, there were three individuals inside the home. Over the course of the investigation, law enforcement determined that the firearm had been reported stolen.
Jacobs has multiple previous state convictions including robbery, breaking and entering, selling drugs, and assault on a female, and he is prohibited from possessing a firearm.
Jacobs is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
The investigation was handled by ATF and CMPD. Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Georgia Cocaine Trafficker and Money Launderer Is Sentenced to 30 Years in Federal PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell handed down a 30-year sentence to the leader of a drug and money laundering organization operating across the Carolinas, 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 ordered Jared Shemaiah Jones, 39, of Alpharetta, Georgia, to serve five years of supervised release.
U.S. Attorney King is joined in making this announcement by Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte; Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina; and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI).
According to filed documents and court proceedings, between 2014 and September 2020, the drug conspiracy trafficked approximately 1,000 kilograms of cocaine from California into North Carolina and South Carolina and laundered the criminal proceeds. During the investigation, law enforcement seized 30 kilograms of cocaine, one kilogram of heroin, and approximately $500,000 in cash. Jones previously pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, money laundering conspiracy, and possession with intent to distribute cocaine.
In handing down Jones’s sentence, Judge Bell noted that, in addition to harming substance users, Jones also recruited several people into the conspiracy who, but for his influence, would have lived law-abiding lives.
Judge Bell previously sentenced Jones’s co-defendants as follows:
- Jasneko Marquell Wright, 35, of Newberry, S.C., was sentenced to 120 months in prison, followed by five years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine and money laundering conspiracy.
- Joel Mark Walker, 36, of Columbia, S.C., was sentenced to 84 months in prison, followed by two years of supervised release, for money laundering conspiracy.
- Jarmel Brownlee, 31, of Charlotte, was sentenced to 60 months in prison followed by four years of supervised release for conspiracy to distribute and to possess with intent to distribute cocaine and money laundering conspiracy.
- Nathasha Lawes, 33, of Clover, S.C., was sentenced to 36 months in prison, followed by two years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine and possession with intent to distribute cocaine.
- Phonesavanh Phonesavang, 39, of Charlotte, was sentenced to 36 months in prison, followed by three years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine and possession with intent to distribute cocaine.
- Marlaina Nashae Smoot, 27, of Newberry, S.C., was sentenced to 24 months in prison, followed by three years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine.
- Judiet Vontella Cooper, 36, of Charlotte, was sentenced to a year and a day in prison followed by two years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine, money laundering conspiracy, and possession with intent to distribute heroin.
- Marquita Andrea Hunter, 48, of Columbia, was sentenced to a year and a day in prison, followed by two years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine.
Jervonta Antonio Walker, 39, of Los Angeles, California, has pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, money laundering conspiracy, and possession with intent to distribute cocaine, and is currently awaiting sentencing.
An additional defendant indicted in this case, Yannick Anderson, 26, of New York, is charged with conspiracy to distribute and to possess with intent to distribute cocaine, money laundering conspiracy, three counts of possession with intent to distribute cocaine, possession of firearm in furtherance of drug trafficking, and possession of firearm by felon, and remains a fugitive.
Today’s lengthy sentence stems from an investigation led by one of the Western District of North Carolina’s Organized Crime Drug Enforcement Task Force (OCDETF). 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 DEA, USPIS, HSI, and IRS, as well as the U.S. Bureau of Alcohol Tobacco and Firearms (ATF), the National Insurance Crime Bureau, the Charlotte-Mecklenburg Police Department, the Rowan County Sheriff’s Office, the Rock Hill Police Department, the North Carolina Department of Motor Vehicles, the South Carolina Law Enforcement Division (SLED), the Lexington County, S.C., Sheriff’s Department, the Richland County, S.C., Sheriff’s Department, the York County, S.C., Sheriff’s Office, and the City of Columbia, S.C., Police Department for their investigative efforts.
Assistant United States Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Morganton, N.C. Man Is Sentenced to 13+ Years for Transportation of Child PornographyRead the Press Release
CHARLOTTE, N.C. – Martin Lee McGee, 32, of Morganton, N.C., was sentenced to 160 months in federal prison today for transporting child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, McGee was ordered to serve a lifetime of supervised release, to register as a sex offender, and to pay a $100 special assessment, a $5,000 Justice for Victims of Trafficking Act (JTVA) assessment, and a $35,000 Amy, Vicky, and Andy Child Pornography Victim Assistance Act (AVAA) assessment.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Vidal Sipe of the Newton Police Department join U.S. Attorney King in making today’s announcement.
According to court records and today’s sentencing hearing, in April 2020, law enforcement were alerted to an individual, later identified as McGee, using Snapchat to upload child pornography. Law enforcement executed search warrants at McGee’s residence and Snapchat account. A forensic analysis of the seized devices and information revealed that McGee possessed more than 13,500 images and videos depicting the sexual abuse of children. Some of the child pornography in McGee’s extensive collection depicted minors as young as toddlers engaging in sadistic and masochistic conduct.
On October 6, 2021, McGee pleaded guilty to transportation of child pornography. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons Upon designation of a federal facility.
In making today’s announcement U.S. Attorney King commended the FBI and the Newton Police Department for their investigation of the case, and thanked the Catawba County Sheriff’s Office for their assistance.
Assistant United States Attorneys Cortney Randall and Nick J. Miller prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Hickory Drug Trafficker Is Sentenced to Five Years for Firearms OffenseRead the Press Release
CHARLOTTE, N.C. – Carlos Car’tre Ikard, 26, of Hickory, N.C., was sentenced to 60 months in prison and three years of supervised release for possession of a firearm in furtherance of a drug trafficking crime, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell presided over today’s sentencing.
U.S. Attorney King is joined in making today’s announcement by Brian Mein, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Thurman Whisnant of the Hickory Police Department.
According to filed documents and court proceedings, on July 13, 2020, while Ikard was on post-release supervision with the State of North Carolina, he began posting images on his Snapchat account in which he was possessing multiple firearms. The next day, law enforcement located Ikard in a vehicle parked at his residence in Hickory. Law enforcement seized from the vehicle three firearms, one of which was stolen, Oxycodone pills, and marijuana. Law enforcement also executed search warrants for Ikard’s Snapchat account and cell phone, which contained images of Ikard with the seized firearms and messages in which Ikard arranged drug sales.
Ikard 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 investigation was led by the ATF and the Hickory Police Department, with the assistance of the North Carolina Department of Public Services, Division of Community Corrections.
Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Federal Judge Sentences McDowell County Man to 30 Years for Production of Child PornographyRead the Press Release
ASHEVILLE, N.C. – Jonathan Leslie Carver, 27, of Nebo, N.C., was sentenced to 360 months in federal prison today for the production of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Carver’s prison sentence will be followed by a lifetime of supervised release and he will also be required to register as a sex offender.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Sheriff Ricky T. Buchanan of the McDowell County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
“Carver harmed a child for his sexual gratification and shared the abuse online,” said U.S. Attorney King. “I commend our law enforcement partners for their thorough investigation of this case. The evidence gathered helped put this predator behind bars where he belongs.”
“Stopping those who prey on the innocence of children is one of the most important missions HSI has,” said Special Agent in Charge Martinez. “Whenever one of these images is shared or viewed it victimizes an innocent child all over again. We will continue to focus the full resources of HSI on investigating and holding accountable those who engage in this type of horrific activity.”
“Another successful collaborative effort with our federal partners bringing a child predator to justice,” stated Sheriff Buchanan. “We should always do all we can to protect our children and keep them safe.”
On September 1, 2021, Carver pleaded guilty to using a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. According to court records, in November 2020, HSI was notified that an individual with the screen name “Johnnybegood115,” later identified as Carver, was using the Kik social media messaging application to create and distribute child pornography. In December 2020, law enforcement issued a search warrant for Carver’s Kik account. A forensic analysis of the information obtained revealed that Carver had produced images and videos of himself sexually abusing an infant and used his Kik account to distribute the child pornography online.
The case was investigated by HSI and the McDowell County Sheriff’s Office.
Assistant United States Attorney Alexis Solheim of the U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.