Western District of North Carolina
Press releases recorded for this federal judicial district.
Convenience Store Robber is Sentenced to 10 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that James Edward Massey, 27, of Charlotte, was sentenced to 10 years in prison and three years of supervised release by U.S. District Judge Kenneth D. Bell, for the robbery of a Circle K convenience store.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and statements made in court, on August 24, 2020, at approximately 4:04 a.m., Massey approached the Circle K convenience store located at 4801 Central Avenue, in Charlotte. Inside the Circle K were a store employee and a vendor making a delivery. Court records show that the store employee saw Massey standing outside and unlocked the front door, thinking that Massey was a customer. Massey entered the store brandishing a semi-automatic handgun, pointed the firearm at the store employee and ordered him to hand over cash from the register. Massey threatened to shoot the employee and the vendor if the employee did not comply. The employee handed Massey approximately $70 from the register and Massey fled the scene on foot.
On August 27, 2020, CMPD’s Armed Robbery Unit received two Crime Stopper tips identifying Massey as the suspect in the Circle K robbery. Following an investigation, law enforcement arrested Massey in connection with robbery of the convenience store.
On April 16, 2021, Massey pleaded guilty to conspiracy to commit Hobbs Act Robbery and Hobbs Act Robbery.
Massey is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI and CMPD for handling the investigation. Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Two Charlotte Men Are Sentenced to Prison for the Attempted Armed Robbery of A Local RestaurantRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad Jr. sentenced to prison today Deonte Marques Curry, 27, and Trevon Gregory Ricks, 26, both of Charlotte, for the attempted armed robbery of Mr. C’s Original Soul Food restaurant, during which a victim sustained multiple gunshot injuries, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Judge Conrad ordered Curry to serve 10 years in prison and three years of supervised release. Ricks was sentenced to five years in prison, followed by two years of supervised release.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and today’s sentencing hearing, on March 5, 2020, at approximately 12:00 p.m., Curry and Ricks attempted to rob Mr. C’s Original Soul Food restaurant, located at 3726 North Tryon Street, in Charlotte. Court records show that Ricks and Curry entered the restaurant through a rear access door, and ordered an employee working in the kitchen area to get on the ground. The employee complied and the two robbers headed toward the front of the restaurant. Upon entering the front area, Curry pointed a loaded 9mm pistol equipped with an extended magazine at the restaurant owner and demanded his wallet. While the owner put his hands up, another individual, identified in court documents as M.C., tackled Curry in an attempt to disrupt the robbery. A struggle ensued and Curry fired his pistol several times, striking M.C. in the chest, stomach, left arm and right hand. Ricks fled the scene, while the restaurant owner continued to struggle with Curry, until CMPD police officers arrived and arrested Curry at the scene. Ricks was apprehended nearby shortly thereafter.
In September 2020, both Curry and Ricks pleaded guilty to conspiracy to commit Hobbs Act Robbery and attempted Hobbs Act Robbery and aiding and abetting. They are currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI and CMPD for their investigation of the case.
Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Federal Judge Sentences Three Cocaine Traffickers to PrisonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr., handed down prison sentences of up to 25 years to three cocaine traffickers, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina
Judge Conrad sentenced the defendants as follows:
- Anthony Tommy Foster, 45, of Mokena, Illinois, was sentenced to 25 years in prison, followed by 10 years of supervised release. A federal jury convicted Foster in December 2020, of conspiracy to distribute and to possess with intent to distribute cocaine and possession with intent to distribute cocaine and aiding and abetting. As a result of Foster’s prior federal drug trafficking and other state convictions, the Court sentenced him as a career offender.
- Reynaldo Padilla, 48, of Chicago, Illinois, was sentenced to 15 years in prison, followed by 10 years of supervised release. Padilla pleaded guilty to drug trafficking conspiracy and possession with intent to distribute cocaine. Padilla also received an enhanced sentence due to a prior federal drug trafficking conviction.
- Alejandro Miguel Padilla, 35, of Chicago, Illinois, was sentenced to 24 months in prison, followed by two years of supervised release. He pleaded guilty to drug trafficking conspiracy and possession with intent to distribute cocaine.
According to filed court documents, trial evidence and statements made in court, the defendants were involved in a cocaine trafficking conspiracy operating in and around Gaston County. Court records show that on June 29, 2020, Reynaldo Padilla and Alejandro Padilla met with Foster in Belmont, N.C., after arranging the purchase of 20 kilograms of cocaine. According to court records, at that meeting, Foster handed Reynaldo Padilla a duffel bag that contained $500,000 in cash and Alejandro Padilla drove with Reynaldo Padilla to exchange the money for the drugs. According to trial evidence, the defendants intended to make future purchases of 100 to 200 kilograms of cocaine, per transaction.
All three defendants have been in federal custody since June 2020. They will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked Ronnie Martinez, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in North Carolina; Chief Chad Hawkins of the Belmont Police Department; Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department (CMPD); Chief Joseph D. Ramey of the Gaston County Police Department; Chief Travis Brittain of the City of Gastonia Police Department; Chief Don Roper of the Mt. Holly Police Department; and Michael Eiss of the Waxhaw Police Department for their respective agencies’ investigative efforts and coordination in this case.
Assistant U.S. Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
- Anthony Tommy Foster, 45, of Mokena, Illinois, was sentenced to 25 years in prison, followed by 10 years of supervised release. A federal jury convicted Foster in December 2020, of conspiracy to distribute and to possess with intent to distribute cocaine and possession with intent to distribute cocaine and aiding and abetting. As a result of Foster’s prior federal drug trafficking and other state convictions, the Court sentenced him as a career offender.
Charlotte Man Is Sentenced to Eight Years on Gun ChargesRead the Press Release
CHARLOTTE, N.C. – On Thursday, August 5, 2021, U.S. District Robert J. Conrad, Jr. sentenced Kane Kileal Lamont Moore, 26, of Charlotte, to 96 months in prison, followed by three years of supervised release, on felon in possession of a firearm charges, announced Acting U.S. Attorney William T. Stetzer.
Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and the sentencing hearing, between May and June 2019, Moore sold two firearms to undercover ATF agents and was involved in the sale or attempted sale of additional firearms. Court records show that Moore was previously convicted of Breaking and Entering, Common Law Robbery, and Attempted Common Law Robbery, and he is prohibited from possessing firearms. On July 24, 2020, Moore pleaded guilty to two counts of possession of a firearm by a felon.
Moore 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, Acting U.S. Attorney Stetzer thanked the ATF and CMPD for their investigation of the case.
Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Federal Judge Sentences Former Waxhaw, N.C. Resident to 33 Months for Orchestrating an $845,000 Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Kamlesh Gopal Pardasani, 50, formerly of Waxhaw, N.C., was sentenced today to 33 months in prison for orchestrating an $845,000 investment scheme, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Robert J. Conrad also ordered Pardasani to serve three years of supervised release and to pay $880,000 in restitution.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and today’s court proceedings, from August 2016 to June 2017, Pardasani executed a scheme to defraud at least seven victims of at least $845,000, by inducing the victims to invest in his company, FreightGuru.com LLC (FreightGuru). Court documents show that Pardasani induced his victims to invest their money by falsely representing that he would use the investors’ money to fund a specific shipment of goods, and that, once the shipment cleared, the victims’ return rate on their initial investment would be between 15% and 20%. Pardasani further lied to victims by falsely assuring them that their funds were secure and safe, when in fact he used the victims’ money to fund his lifestyle, pay off personal creditors, and to engage in high-risk securities trading in his personal trading account. After failing to invest the victims’ funds as promised, Pardasani continued to make additional false and fraudulent representations to lull victims and provided excuses for failing to return the victims’ money.
Pardasani was arrested in January 2020, at the Philadelphia International Airport upon entering the United States from India. In July 2020, Pardasani pleaded guilty to wire fraud.
The FBI’s Charlotte Field Office led the investigation. Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Eleven Methamphetamine Traffickers Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Eleven members of a methamphetamine trafficking ring have been ordered to serve prison sentences ranging from 36 months to 210 months for federal drug conspiracy charges, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
According to filed court documents and court proceedings, from 2018 to April 2019, the co-defendants were involved in a drug conspiracy that trafficked and distributed methamphetamine in Catawba, Lincoln, Caldwell, and Alexander Counties and elsewhere in Western North Carolina. Over the course of the multi-agency investigation, law enforcement seized at least 23 firearms, and more than $250,000 in drug proceeds.
The 11 defendants, each of whom previously pleaded guilty conspiracy to distribute and to possess with intent to distribute methamphetamine, were sentenced by U.S. District Judge Kenneth D. Bell on Wednesday, August 4, and Thursday, August 5, 2021, as follows:
- Kimberly Deann Bumgarner, 56, of Claremont, N.C., was sentenced to 60 months in prison and two years of supervised release. In addition to the conspiracy charge, Bumgarner also pleaded guilty to possession with intent to distribute methamphetamine.
- Ruth Marie Dugger, 38, of Claremont, N.C., was sentenced to 132 months in prison and five years of supervised release. Duggar also pleaded guilty to possession with intent to distribute methamphetamine.
- Aaron Douglas Goodson, 30, of Maiden, N.C., was sentenced to 210 months in prison and five years of supervised release. Goodson also pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
- Tiffany Christmas Hirani, 34, of Monroe, Georgia, was sentenced to 210 months in prison and five years of supervised release.
- Priscilla Chapman Lambert, 34, of Hickory, N.C., was sentenced to 151 months in prison and five years of supervised release.
- Brian Duane Martz, 42, was sentenced to 191 months in prison and five
years of supervised release. - Lowell Thomas Messer, 44, of Newton, N.C., was sentenced to 120 months in prison and five years of supervised release. Messer also pleaded guilty to two counts of possession with intent to distribute methamphetamine.
- Jason Keith Reichard, 39, of Newton, N.C., was sentenced to 36 months in prison and three years of supervised release.
- Cynthia Roxanne Shook, 35, of Catawba, N.C., was sentenced to 60 months in prison and two years of supervised release. Shook also pleaded guilty to possession with intent to distribute methamphetamine.
- Thomas Dewayne Simmons, Jr., 35, of Snellville, Georgia, was sentenced to 150 months in prison and five years of supervised release. Simmons also pleaded guilty to possession with intent to distribute methamphetamine.
- Samantha Jean Taylor, 26, of Newton, N.C., was sentenced to 120 months in prison and five years of supervised release.
Three other members of the conspiracy have pleaded guilty for their participation in the drug conspiracy. James Kristoffer Cantley, Jonathan Corey Daniel, and Michael James Notheisen, have pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine. Cantley and Notheisen have also each pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime. A sentencing date for Cantley, Daniel and Notheisen has not been set.
In making today’s announcement Acting U.S. Attorney Stetzer thanked the following agencies for their investigative efforts: the DEA in Charlotte, Asheville, and Atlanta; the North Carolina State Bureau of Investigation; the North Carolina State Highway Patrol; the Catawba County Sheriff’s Office; the Newton Police Department; the Conover Police Department; the Maiden Police Department; the Hickory Police Department; the Longview Police Department; the Caldwell County Sheriff’s Office; the Granite Falls Police Department; the Lincoln County Sheriff’s Office; the Cleveland County Sheriff’s Office; the Huntersville Police Department; the Cornelius Police Department; the Mint Hill Police Department; the Pineville Police Department; the Charlotte Mecklenburg Police Department; the Monroe Police Department; the Taylorsville Police Department; the Gaston County Police Department; the Georgia Highway Patrol; the Franklin County Sheriff’s Office in Georgia; the Georgia Bureau of Investigation; the Georgia Department of Corrections; the Clayton County Sheriff’s Office in Georgia; and the Commerce Police Department in Georgia.
Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Charlotte Man Is Sentenced to 22 Years for Carjacking A Vehicle with A Child in the CarseatRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that Maurice Rakestraw, 31, of Charlotte, was sentenced to 264 months in prison for carjacking and related firearms offenses. In addition to the prison term imposed, U.S. District Judge Robert J. Conrad Jr. also ordered Rakestraw to serve five years under court supervision upon his release.
Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join Acting U.S. Attorney Stetzer in making today’s announcement.
According to court documents and evidence presented at Rakestraw’s sentencing hearing, on December 5, 2019, Rakestraw was a passenger in a vehicle that was stopped by CMPD officers. Over the course of the traffic stop, Rakestraw fled from the scene on foot until he encountered his carjacking victims in a parking lot of an apartment complex. Court documents show that Rakestraw approached the two adult victims, pointed a firearm at one of them and threatened to kill him if he did not give Rakestraw his car. Rakestraw sped off in the stolen vehicle with the victims’ baby still secured in the car seat. Approximately six minutes later, Rakestraw crashed the stolen vehicle into a trailer being pulled by a truck and flipped the vehicle onto its roof. According to evidence presented at the sentencing hearing, Rakestraw crawled out of the car and ran away from the crash scene, leaving the baby in the overturned vehicle. The occupants of the truck were able to pry the vehicle’s door open and remove the baby from the car seat.
According to court documents, CMPD officers encountered Rakestraw shortly thereafter, walking along a sidewalk. An officer attempted to take Rakestraw into custody but Rakestraw fled into nearby woods. Rakestraw was apprehended after he was located in the schoolyard of Merry Oaks International Elementary. Officers also located Rakestraw’s firearm nearby in the woods. Over the course of the investigation, law enforcement determined that Rakestraw had stolen the firearm during a domestic violence assault two days prior.
In November 2020, Rakestraw pleaded guilty to carjacking, possession and brandishing of a firearm in furtherance of a crime of violence, possession of a firearm by a felon, and stealing a firearm. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
Assistant United States Attorneys David Kelly and Erik Lindahl handled the prosecution.
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Earlier this week, in an unrelated armed carjacking case, Judge Conrad ordered Kshune Jackson, 23, and Blaine Cook, 23, both of Charlotte, to serve 125 months in prison each, for taking a car at gunpoint from two victims in Charlotte on January 16, 2020. At the time of this federal offense, Jackson and Cook were both on state post-release supervision after having served prison sentences for armed robbery. Acting U.S. Attorney Stetzer thanked Homeland Security Investigations and CMPD for their investigation of this case, which was prosecuted by Assistant U.S. Attorney David Kelly.
Catawba County Man Is Sentenced to 13 ½ Years for Robbing Two Hickory Area Businesses at GunpointRead the Press Release
CHARLOTTE, N.C. – A Catawba County man who robbed two Hickory-area businesses at gunpoint in March 2020 was sentenced on Wednesday, August 4, 2021, to 162 months in prison, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Lester Deontae Lackey, 30, of Newton, N.C., was also ordered to serve three years under court supervision after he is released from prison. The Honorable Kenneth D. Bell presided over the sentencing hearing.
Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Sheriff Alan C. Jones, of the Caldwell County Sheriff’s Office, and Chief Thurman Whisnant of the Hickory Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents, and statements made in court, on March 21, 2020, at 11:55 p.m., Lackey robbed a Speedway Store located 1835 Hwy 70 SE in Hickory, N.C. Upon entering the store, Lackey pointed a rifle at a store clerk and demanded money. The store clerk complied and handed Lackey $300 in cash and Lackey fled the scene. Court records show that two days later, on March 23, 2020, at approximately 1:50 p.m., Lackey entered a CVS Pharmacy located at 2259 12th Avenue, in Hickory. As with the previous robbery, upon entering the pharmacy Lackey pointed a rifle at the store’s shift manager and another employee and demanded money. The shift manager handed Lackey approximately $252 in cash and Lackey fled the scene. At the time of the robbery, there were multiple customers inside the pharmacy who managed to flee to the rear of the store.
According to court records, law enforcement quicky identified Lackey’s getaway vehicle and a Hickory police officer located Lackey who was still in the Hickory area. Law enforcement attempted to stop Lackey’s vehicle but Lackey proceeded to attempt to evade the police. A pursuit by multiple law enforcement agencies ensued which lasted approximately 30 minutes. During the pursuit, Lackey traveled into Caldwell County and back into the Long View area of Catawba County. Law enforcement arrested Lackey after his vehicle collided with a power pole and Lackey attempted to flee on foot.
On December 4, 2020, Lackey pleaded guilty to Hobbs Act robbery, which is the robbery of a business engaged in interstate commerce, and possession of a firearm in furtherance of the robbery.
Lackey 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 announcing the sentence, Acting U.S. Attorney Stetzer thanked the ATF, the Caldwell County Sheriff's Office, the Hickory Police Department and the North Carolina Highway Patrol for their investigation of the case.
Assistant U.S. Attorney Christopher Hess handled the prosecution.
Former Car Dealership Owner Pleads Guilty to Wire FraudRead the Press Release
CHARLOTTE, N.C. – Joseph E. Stasney, a/k/a Buddy Stasney, 59, of Denver, N.C., appeared before U.S. District Judge Kenneth D. Bell today and pleaded guilty to wire fraud, for executing a fraudulent auto loan scheme to obtain in excess of $250,000 from a financial institution, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Office and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed plea documents and today’s court hearing, Stasney was the owner of Buddy Stasney Buick GMC, Inc., (later named Buddy Stasney Automotive, Inc.), a used car dealership located in Lincolnton, N.C. Between February and December 2015, Stasney engaged in an auto loan scheme in which he fraudulently obtained money from a financial institution by submitting falsified loan applications on behalf of his victim-customers. As he admitted in court today, Stasney executed the loan scheme in a number of ways. After negotiating the sale of vehicles with prospective customers, Stasney fraudulently submitted loan applications on behalf of the customers that contained misrepresentations regarding the current status and terms of the transactions and loans, or submitted loan applications on behalf of customers who were not aware a loan application had been submitted in their name. In some instances, customers were falsely told their loan had not been processed when in fact it had. In other instances, Stasney defrauded customers who were refinancing loans by falsely telling them that the proceeds of their new loans had been used to pay off their existing loans, when, in fact, Stasney never paid off the customers’ prior auto loans and the victims remained obligated for those loans.
According to court documents, once the fraudulent loan proceeds were deposited into the car dealership’s bank account, Stasney diverted the funds and used a portion to pay for expenses unrelated to his business. Stasney admitted to defrauding the financial institution of more than $250,000, as a result of the fraudulent scheme.
Stasney was released on bond following his guilty plea. The maximum statutory penalty for the wire fraud charge is 20 years in prison and a $250,000 fine.
In making today’s announcement, Acting U.S. Attorney Stetzer commended the FBI and USPIS for leading the investigation, and thanked the North Carolina Department of Motor Vehicles for their invaluable assistance.
Assistant U.S. Attorneys Caryn Finley and Graham Billings, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Buncombe Co. Man Pleads Guilty to Receiving Nearly $1 Million in Veteran Benefits Based on Fraudulent Service-Connected DisabilitiesRead the Press Release
ASHEVILLE, N.C. – Acting U.S. Attorney William T. Stetzer announced that John Paul Cook, 57, of Alexander, N.C. appeared before U.S. Magistrate Judge W. Carleton Metcalf on Monday, July 19, 2021, and pleaded guilty to defrauding the U.S. Department of Veterans Affairs (the VA) by receiving nearly $1 million in veteran benefits based on fraudulent claims of service-connected disabilities.
Kim Lampkins, Special Agent in Charge of the Mid-Atlantic Field Office, Washington, D.C., of the U.S. Department of Veterans Affairs, Office of Inspector General (VA-OIG), joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to the criminal indictment, filed plea documents and admissions made in court, Cook enlisted in the United States Army (the Army) in November 1985. Court documents show that six months later Cook sustained an accidental injury while on duty. Following the incident, Cook complained that as a result of the accident and injuries he sustained, a preexisting eye condition had worsened. In 1987, following a medical evaluation, Cook was discharged, placed on the retired list, and began receiving VA disability-based compensation at a rate of 60%. Over the next 30 years, Cook’s disability-based compensation increased, following Cook’s repeated false claims of increased visual impairment and unemployability due to “severe visual deficit.” As Cook admitted in court, in 2005, based on his claims of severe visual impairment, the VA declared Cook legally blind and he began receiving disability-based compensation at the maximum rate. Cook also began to receive additional benefits, including Special Monthly Compensation (an extra monetary allowance paid to a qualifying veteran due to the severity of his disability), Specially Adapted Housing (a grant that goes toward paying for adaptations in a new home), and Special Housing Adaptation (a grant that goes toward remodeling an existing home).
According to court records, Cook’s monthly VA disability payments in 1987 were $1,411 per month. With the incremental increases in his disability rating, as well as cost-of-living adjustments and his Special Monthly Compensation, these payments steadily increased over the years. By 2016, the monthly payment had risen to $3,990. In total, from 1987 through 2017, Cook received approximately $978,138 in VA disability payments due to his claimed blindness, to which he was not lawfully entitled.
According to admissions reflected in plea documents, contrary to Cook’s filed claims with the VA for additional disability claims and his complaints of increased visual impairment, Cook repeatedly passed vision screening tests to renew or obtain a driver’s license in North and South Carolina. Furthermore, during the relevant time period, court documents show that Cook purchased and registered over 30 different motor vehicles which Cook routinely drove, including on long-distance trips and to perform errands. Court records further show that, from 2010 to 2016, during a time period that Cook was receiving maximum VA disability benefits for his visual impairment, Cook was actively involved with the Boy Scouts of America (BSA), including serving as a Den Leader and a Cubmaster. Among the courses the defendant completed with the BSA were courses qualifying him to be a range officer for BB guns and for archery. He was also certified for land navigation, which involves reading maps and using a compass.
The charge of stealing from the VA carries a maximum penalty of 10 years in prison and a $250,000 fine. A sentencing date for Cook has not been set.
In making today’s announcement Acting U.S. Attorney Stetzer thanked the VA-OIG for their investigation of the case.
Assistant U.S. Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
Two Men Convicted for Roles in $4.5 Million International Telemarketing SchemeRead the Press Release
A federal jury convicted two men Wednesday for their roles in a $4.5 million telemarketing scheme that defrauded victims in the United States from a call center in Costa Rica.
According to court documents and evidence presented at trial, Manuel Chavez, 30, of Miami, Florida, and Mark Oman, 36, of Long Beach, Washington, participated in a fraudulent telemarketing scheme in which co-conspirators, who falsely posed as U.S. government officials, contacted victims in the United States to tell them that that they had won a substantial “sweepstakes” prize. After convincing victims, many of whom were elderly, that they stood to receive a significant financial reward, the co-conspirators told victims that they needed to make a series of up-front payments before collecting their supposed prize, purportedly for items such as taxes, customs duties and other fees. Co-conspirators used a variety of means to conceal their true identities, including Voice over Internet Protocol technology, which made it appear as though they were calling from Washington, D.C., and other locations in the United States. Chavez helped to transmit victims’ payments from the United States to Costa Rica, while Oman worked at the fraudulent call center soliciting victims and also collected victim funds in Costa Rica, according to the evidence presented at trial. Chavez, Oman, and their co-conspirators stole approximately $4.5 million from victims, the evidence showed.
Chavez and Oman were each convicted of one count of conspiracy to commit mail and wire fraud, six counts of wire fraud, one count of conspiracy to commit international money laundering and six counts of international money laundering. Sentencing has not yet been set by U.S. District Court Judge Max O. Cogburn Jr. of the Western District of North Carolina, who presided over the trial. Each defendant faces a maximum penalty of 20 years in prison per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney William T. Stetzer of the U.S. Attorney’s Office for the Western District of North Carolina; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service’s (USPIS) Atlanta Division; Special Agent in Charge Bryant Jackson of the IRS Criminal Investigation’s (IRS-CI) Cincinnati Field Office; and Special Agent in Charge Robert Wells of the FBI’s Charlotte Field Office made the announcement.
The USPIS, IRS-CI, and FBI investigated the case.
Trial Attorneys Della Sentilles and Joshua DeBold of the Criminal Division’s Fraud Section are prosecuting the case.
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 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
Federal Jury Convicts Charlotte Man of Armed Robbery, Attempted Armed Robbery, and Firearms OffensesRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte returned a guilty verdict late yesterday against Ron McQuay Garland, 38, of Charlotte, for his role in a string of armed robberies and attempted armed robberies, and related firearms offenses, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell presided over the three-day trial.
Acting U.S. Attorney Stetzer is joined in making today’s announcement by Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department.
According to filed court documents, witness testimony and evidence presented at trial, on August 19, 2019, Garland, robbed at gunpoint a Zaxby’s fast food restaurant, located at 8905 Albemarle Road in Charlotte. Garland entered the restaurant while brandishing a black semiautomatic pistol at the employees. Garland ordered an employee to open the cash register and took approximately $1,000 in cash. Garland subsequently fled the scene with a co-defendant. According to trial evidence, on September 21, 2019, Garland robbed a Family Dollar store located at 4130 Rozzelles Ferry Road, in Charlotte. As witnesses testified, Garland entered the store and brandished a handgun at a store employee. Garland then forced the employee to open the register and Garland stole approximately more than $1,000 before fleeing.
According to court documents and trial evidence, Garland also attempted to rob two other Charlotte area businesses. On August 21, 2019, Garland attempted to rob an Arby’s fast food restaurant, located at 2501 Little Rock Road in Charlotte. Garland entered the restaurant, pointed a handgun at the employees and demanded money from the cash register. Garland was unable to open the register but took an employee’s cell phone before fleeing the scene with a co-defendant. On February 11, 2020, Garland also attempted to rob a Jack-in-the-Box restaurant, located at 10121 North Tryon Street in Charlotte. Garland pointed a firearm at an employee who was taking out the trash and attempted to enter the restaurant, first through the back door and then through the front door but was ultimately unsuccessful. Garland stole a wallet from a customer in the parking lot after eventually abandoning the attempted robbery. Garland fled the scene with a co-defendant and was apprehended early the next morning by the FBI and CMPD.
The jury convicted Garland of two counts of robbery of a business affecting interstate commerce, or “Hobbs Act” Robbery, and two counts of attempted Hobbs Act Robbery, for which the maximum prison term is 20 years per count; two counts of possession of a firearm during and in relation to a crime of violence, which carry a maximum penalty of life in prison, per count; and one count of felon in possession of a firearm which carries a maximum penalty of 10 years in prison. A sentencing date has not been set.
Garland’s co-defendant, Chan Tate, previously pleaded guilty to aiding and abetting three counts of Hobbs Act or attempted Hobbs Act Robbery and is currently awaiting sentencing.
The investigation was handled by the FBI’s Violent Crimes Task Force and CMPD.
Assistant U.S. Attorneys William Bozin and Taylor Stout of the of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
Newport, N.C. Man Is Sentenced to 10 Years for Online Enticement of A MinorRead the Press Release
CHARLOTTE, N.C. – James Wesley Safrit, 33, of Newport, N.C. was sentenced today by U.S. District Judge Frank D. Whitney to 120 months in prison for the online enticement of a minor, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Judge Whitney also ordered Safrit to register as a sex offender and to serve 25 years under court supervision after he is released from prison.
Acting U.S. Attorney Stetzer is joined in making today’s announcement by Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to court documents and today’s court proceedings, between January 9 and January 21, 2020, Safrit used MeetMe, a social networking application, to engage in multiple communications with an FBI undercover employee posing as a minor. Court records show that, during these communications, Safrit discussed his interest in engaging in sexual contact with the minor and made arrangements to meet the minor. Law enforcement arrested Safrit in Matthews, N.C., when he arrived at the agreed-upon location to meet with the person Safrit thought was a 14-year-old boy, for the purpose of engaging in sexual activities. Safrit pleaded guilty on June 19, 2020, to enticement of a minor using a means and facility of interstate commerce.
In imposing today’s sentence, Judge Whitney noted that “this type of criminal conduct is unacceptable and will be punished severely.”
Safit is currently in federal custody and he will be transferred to custody of the Federal Bureau of Prisons upon designation of a federal facility.
The investigation was led by the FBI. Assistant U.S. Attorney Mark T. Odulio, of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Discord User Is Sentenced to 14 Years for Distributing Child PornographyRead the Press Release
CHARLOTTE, N.C. B Mayuresh Suresh Iyer, 26, of Matthews, N.C. was sentenced today to 14 years in prison for distributing child pornography on Discord, a popular messaging platform, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. In addition to the sentenced imposed, U.S. District Judge Frank D. Whitney also ordered Iyer to pay a $35,000 special assessment, serve 25 years of supervised release, pay restitution to the victims of his offense, and to register as a sex offender after he is released from prison.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, in October 2019, law enforcement received information that an individual later identified as Iyer was using his Discord user account to distribute child pornography. Discord is a popular free application that allows users to communicate with each other via voice and video calls and text messaging, and to share media files through private chats or communities referred to as “servers.”
Law enforcement executed a search warrant at Iyer’s residence and seized multiple electronic devices, including two external hard drives. A forensic analysis of those devices revealed that Iyer possessed an extensive collection of child pornography, including over 800 videos and approximately 14,147 images of children engaging in sexually explicit conduct. Some of the child pornography in Iyer’s possession depicted prepubescent minors being abused through sadistic, masochistic and other violent conduct. In September 2020, Iyer pleaded guilty to distributing and attempting to distribute child pornography.
Acting U.S. Attorney Stetzer thanked the FBI and CMPD for their investigation of this case. Assistant U.S. Attorney Mark T. Odulio of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
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
Serial Embezzler Pleads Guilty to Federal Charges for Stealing More Than $570,000 from Two EmployersRead the Press Release
CHARLOTTE, N.C. – Lisa Buza Hill, 41, of Belmont, N.C., appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to wire fraud and making false statements for embezzling more than $570,000 from two companies that employed her, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Hill was previously convicted of stealing more than $800,000 from a third company where she was employed.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in Charlotte, and Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department (CMPD), are joining Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and court proceedings, in 2012, Hill, also known as Lisa Rollins-Hill, was convicted of federal wire fraud after she admitted to stealing more than $800,000 from her then-employer, a motorcycle company headquartered in Kings Mountain, N.C. At the time, Hill was ordered to serve a five-month probationary term, three years of supervised release and to pay $807,506.39 in restitution to the victim company.
In July 2020, the U.S. Attorney’s Office filed new charges against Hill, for embezzling funds from a Charlotte-based company where Hill worked as a Controller. According to court documents filed in this case, from September 2019 to February 2020, and while still paying restitution for the 2012 embezzlement scheme, Hill misused her access to her employer’s financial system, including her authority to issue company checks, and defrauded the company by fraudulently issuing herself approximately 15 company checks totaling over $22,000. During this time, Hill also made false statements to the U.S. Attorney’s Office’s attempts to collect court-ordered restitution owed by Hill in connection with her 2012 conviction.
In June 2021, while Hill’s criminal charges for the fraudulent check scheme were still pending, a federal bill of information was also filed against Hill, charging her with embezzling more than $550,000 from her latest employer, a development company located in Rock Hill, S.C., identified in court documents as Company A. According to court documents, from May 2020 to January 2021, Hill was employed by Company A as the Chief Financial Officer (CFO). As the CFO, Hill had access to the company’s bank accounts, and her duties included the ability to make payments on behalf of the company. As court documents show, Hill misused her position and access to the company’s financial records to make unauthorized payments to herself, including to make transfers from Company A’s accounts to pay for Hill’s personal expenses. In total, Hill transferred more than $550,000 in authorized funds from Company A for her personal benefit. As Hill admitted in court today, Hill used the embezzled funds to make payments for a BMW vehicle, to pay for a trip to Disney World, to make mortgage payments and to settle misuse of funds allegations from previous employers.
Hill is in federal custody. A sentencing date has not been set.
The FBI and CMPD conducted the investigations into Hill. Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is in charge of Hill’s prosecution.
Man Convicted of Abusive Sexual Conduct Aboard an Airplane Is Sentenced to Two Years in PrisonRead the Press Release
ASHEVILLE, N.C. – Siva K. Durbesula, 29, of India, who was convicted by a jury of abusive sexual contact aboard an airplane, was sentenced to two years in prison late yesterday. In addition to the prison term imposed, Chief U.S. District Judge Martin Reidinger ordered Durbesula to serve 10 years of supervised release and to pay a $5,000 assessment.
Acting U.S. Attorney William T. Stetzer and M. Rhett DeHeart, Acting U.S. Attorney for the District of South Carolina, are joined by Robert R. Wells, Special Agent in Charge for the FBI in Charlotte, in making today’s announcement.
According to filed court documents, witness testimony, and evidence presented at trial, on June 23, 2019, Durbesula was a passenger aboard a flight from Chicago O’Hare to Myrtle Beach, S.C. Over the course of the flight, Durbesula sexually assaulted a 22-year-old female who was seated next to him. As the victim testified at trial, Durbesula pulled her toward him and groped her repeatedly midflight. Court records show that after the flight crew moved Durbesula away from the victim, Durbesula asked to return to his previous seat so he could speak to the victim again.
During trial, prosecutors also presented the testimony of a second victim, who testified that on March 21, 2019 – approximately three months prior to the assault on the airplane – Durbesula pinned her into the corner on a New York City subway train and groped her. The victim was able to video record Durbesula’s exiting the train, which assisted the New York Police Department to identify Durbesula and charge him. Those charges were still pending when Durbesula sexually assaulted the victim on the airplane that resulted in federal charges.
The case was originally indicted in the District of South Carolina and was later transferred to the Western District of North Carolina. In announcing today’s sentence, Judge Reidinger handed Durbesula the statutory maximum prison term for the offense, noting that the defendant’s repeated sexual misconduct over a short period of time required the maximum statutory punishment to promote respect for the law.
Durbesula 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, Acting U.S. Attorneys Stetzer and DeHeart commended the FBI and the Horry County Police Department for their investigation of the case, and thanked Homeland Security Investigations (HSI) for their invaluable assistance.
Assistant U.S. Attorneys Don Gast, of the U.S. Attorney’s Office for the Western District of North Carolina in Asheville, and Derek A. Shoemake, of the U.S. Attorney’s Office for the District of South Carolina in Florence, prosecuted the case.
Convicted Felon Is Sentenced to 11 Years on Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – Western District of North Carolina Acting U.S. Attorney William T. Stetzer and Montana Acting U.S. Attorney Leif M. Johnson announced today that Wilburn Jonathan Wilson, 26, of Hickory, N.C. was sentenced to 132 months in prison and five years of supervised release on federal drug and gun charges. U.S. District Judge Kenneth D. Bell presided over the hearing.
According to filed court documents and today’s sentencing hearing, in 2016, Wilson was convicted in North Carolina of possession of a stolen firearm. As a result of that conviction, Wilson is prohibited from possessing firearms or ammunition. According to court records, in March 2020, law enforcement learned that Wilson was selling firearms illegally in and around Catawba County. Court records show that, between March and July 2020, Wilson sold 26 illegal firearms, including rifles, shotguns and handguns, and hundreds of rounds of ammunition. During the same time period, Wilson also possessed and distributed methamphetamine in the Hickory area.
According to court records, in April 2020, law enforcement in Montana conducted a traffic stop of the vehicle Wilson was driving for excessive speeding. Law enforcement executed a search warrant and seized from Wilson’s vehicle narcotics, a semi-automatic rifle with a full 30 round magazine, and two 12-gauge shotgun shells. Subsequently, Wilson was charged by the U.S. Attorney’s Office for the District of Montana with federal firearm violations.
In November 2020, Wilson pleaded guilty to possession of a firearm by a felon and distribution and possession with intent to distribute methamphetamine in connection with his federal case in the Western District of North Carolina. In March 2021, Wilson pleaded guilty to possession of a firearm by a prohibited person, after the federal case pending against Wilson in Montana was transferred to the Western District of North Carolina.
Wilson 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, Acting U.S. Attorney Stetzer thanked the U.S. Attorney’s Office for the District of Montana for its continued coordination and assistance in this case, and commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the North Carolina State Bureau of Investigation, the Montana Highway Patrol, the Catawba County Sheriff’s Office, the Stillwater County Sheriff’s Office in Montana, the Hickory Police Department, and the Long View Police Department for their investigation of the case.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Charlotte was in charge of Wilson’s prosecution in North Carolina. Wilson’s case in Montana was handled by Assistant U.S. Attorney Brendan P. McCarthy of the U.S. Attorney’s Office in Billings.
Six Charged as Part of Law Enforcement Efforts to Reduce Gun Violence in AshevilleRead the Press Release
ASHEVILLE, N.C. – Acting U.S. Attorney William T. Stetzer announced that six individuals have been indicted on federal charges as a result of federal and local law enforcement efforts to reduce gun violence in Asheville.
Led by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) in partnership with the Asheville Police Department, the local initiative aimed at identifying repeat offenders who illegally possess firearms and/or engage in the distribution of narcotics in the Asheville area.
As a result of this proactive investigation the following six individuals have been charged as follows:
- Andre Ravon Payton, 34, of Asheville, is charged with illegal possession of a firearm and ammunition by a convicted felon, possession of a firearm by an unlawful user of a controlled substance, possession with intent to distribute fentanyl, crack cocaine, and marijuana, and possession of a firearm in furtherance of a drug trafficking crime.
- Daton Tahvian Dapre Alen-Long, 21, of Asheville, is charged with illegal possession of a firearm and 18 rounds of ammunition by a convicted felon, possession with intent to distribute fentanyl, and possession of a firearm in furtherance of a drug trafficking crime.
- Kalon Jamar Logan, 24, of Swannanoa, N.C. is charged with illegal possession of a firearm and 25 rounds of ammunition by a convicted felon.
- Jacob Keith Hall, 31, of Asheville, is charged with illegal possession of a firearm and 25 rounds of ammunition by a convicted felon.
- Juve Markie Lequan McAlpin, 20, of Asheville, is charged with illegal possession of a firearm and 15 rounds of ammunition by a convicted felon.
- Akeem Kwaman McDay, 30, of Asheville, is charged with illegal possession of a firearm and 58 rounds of ammunition by a convicted felon.
The charges contained in the indictments are allegations. The defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement Acting U.S. Attorney Stetzer commended the ATF and the Asheville Police Department for their joint investigation that led to the charges and thanked the North Carolina Department of Public Safety for their invaluable assistance.
Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville is in charge of the prosecution for the government.
These cases are being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Georgia Man Charged with Robbing Two Asheville Banks Is Arrested by the FBIRead the Press Release
ASHEVILLE, N.C. – Acting U.S. Attorney William T. Stetzer announced that Johnny Jermaine Davis, 37, of Kennesaw, Georgia, who is charged with robbing two Asheville area banks, was arrested by the FBI today in Georgia.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief David Zack of the Asheville Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
According to the filed criminal complaint, on February 25, 2021, at approximately 3:02 p.m., an individual later identified as Davis entered a BB&T bank branch located at 1653 Hendersonville Road in Asheville and approached the teller area. The charging document alleges that Davis pulled a handgun, pointed it at a bank teller, yelled “Don’t move,” and then jumped behind the counter. Davis then allegedly ordered three bank employees to lie down on the ground, as he began taking cash from the bank’s drawers. Davis allegedly proceeded to flee the scene with $8,950 in cash.
According to allegations in court documents, on May 20, 2021, at approximately 4:46 p.m., Davis entered the Wells Fargo bank branch located at 800 Merrimon Avenue, in Asheville. As with the previous robbery, Davis allegedly approached the teller counter, pointed a firearm at a bank teller, jumped over the counter and ordered the bank employees to lie down on the ground. Allegedly, Davis then emptied the bank’s cash drawers and fled the scene with $831 in cash.
The criminal complaint charges Davis with bank robbery, which carries a maximum penalty of 20 years in prison and a $250,000 fine.
The charges contained in the criminal complaint are allegations, and the defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, Acting U.S. Attorney Stetzer commended the FBI and the Asheville Police Department for their investigation of the case, and thanked the Hendersonville Police Department, the Acworth Police Department and the Rome Police Department in Georgia for their invaluable assistance.
Assistant United States Attorney, Don Gast, of the U.S. Attorney’s Office in Asheville is prosecuting the case.
Charlotte Man Found Guilty for Operating as Money Mule in $2 Million Business Email Compromise SchemeRead the Press Release
CHARLOTTE, N.C. – A federal jury convicted Chukwudi Michael Okwara, 40, of Charlotte, for his involvement in a Business Email Compromise (BEC) scheme that defrauded at least six companies of approximately $2 million. William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina, announced today that Okwara had been convicted at trial of 27 counts of money laundering, false statements to banks, and aggravated identity theft.
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 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 scammers.
According to trial evidence, witness testimony and documents filed with the court, beginning in November 2018, Okwara, who also goes by “Collins Bird” and “Larry Eugene Coleman,” used fake documents to open multiple money mule bank accounts. Money mule bank accounts are accounts used by fraudsters as a pass-through means of moving fraudulently obtained funds. As trial evidence established, Okwara used the money mule accounts to receive and launder the proceeds of BEC scams perpetrated on at least six victim companies totaling $2 million. According to evidence presented at trial, the money mule accounts opened by Okwara were initially funded with relatively small deposits. Victims of the BEC schemes located throughout the United States were then tricked by scammers to wire large amounts of funds into these accounts. Within days of receipt of the fraudulent wires, Okwara used false and stolen identities and conducted financial transactions with the fraudulently obtained proceeds in order to conceal their origins, including to make large cash withdrawals, purchase official checks, and send wires to other bank accounts under his control.
Okwara’s money laundering convictions carry a maximum sentence of 20 years and a $500,000 fine per count; the five counts of conducting financial transactions with illegal proceeds carry a maximum prison sentence of 10 years and a $250,000 fine per count; the two counts of submitting false documents to banks carry a maximum prison term of 30 years and a $1,000,000 fine per count; and the two counts of aggravated identity theft carry a mandatory minimum sentence of two years in prison, per count, to be served consecutively to any other sentence imposed.
Okwara is currently in federal custody. A sentencing date has not been set.
In making today’s announcement, Acting U.S. Attorney Stetzer commended the investigating efforts of the U.S. Postal Inspection Service and the Charlotte-Mecklenburg Police Department.
Assistant United States Attorneys Matthew Warren and Mark T. Odulio, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
Office Manager Pleads Guilty to Embezzling More Than $1 Million from His Former EmployerRead the Press Release
CHARLOTTE, N.C. – Richard Allen Clark, 55, of Lenoir, N.C., appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to federal charges for embezzling more than $1 million from his former employer, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Mona Passmore, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join Acting U.S. Attorney Stetzer in making today’s announcement.
According to plea documents and statements made in court, from 2013 to 2019, Clark was employed as an office manager for two family owned businesses in Lenoir, and was responsible for, among other things, handling the companies’ bookkeeping and financial records, making payments to vendors and the IRS, and reconciling the companies’ bank accounts. According to court documents, Clark used his position and his access to the companies’ financial records and bank accounts to embezzle more than $1 million from his employers, and used the United States mail to carry out his scheme. According to the indictment, Clark stole money from a company bank account the owner had directed Clark to close. Instead of closing the account, Clark used it to steal from his employer, by instructing customers to make payments to that account.
Clark also admitted that he laundered the funds he embezzled from his employer by withdrawing customer funds from the company’s bank account through multiple fraudulent checks payable to himself, which he deposited into multiple personal bank accounts. Court records show that Clark then used the stolen funds to pay for his personal lifestyle, including to make payments for his home mortgage, to make auto loan payments for an F-150 truck and other vehicles, to install a home theater system, and to pay for travelling and shopping expenses, among other things.
Finally, Clark pled guilty to filing a false U.S. income tax return for tax year 2018 by deliberately failing to claim the additional income he stole from his employers. According to the filed Indictment, Clark falsely declared only his legitimate W-2 income on his 2014 through 2018 U.S. Joint Income Tax Returns, resulting in approximately $195,000 in lost taxes to the United States.
Clark pleaded guilty to one count of mail fraud, which carries a maximum prison term of 30 years in prison and a $1 million fine; one count of money laundering, which carries a maximum penalty of 20 years in prison and a $500,000 fine; and one count of making a false statement on his tax return, which carries a maximum term of three years in prison and a $100,000 fine per count.
In making today’s announcement Acting U.S. Attorney Stetzer thanked IRS-CI, the USPIS, and the Caldwell County Sheriff’s office for their investigation which led to the charges.
Assistant U.S. Attorney Michael Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Charlotte Woman Pleads Guilty to Wire Fraud for Falsely Obtaining Coronavirus Relief LoanRead the Press Release
CHARLOTTE, N.C. – Jasmine Johnnae Clifton, 24, of Charlotte, appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to wire fraud for fraudulently obtaining a COVID-19 loan for almost $150,000 from the U.S. Small Business Administration (SBA), announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Mona Passmore, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and today’s plea hearing, Clifton engaged in a scheme to defraud the SBA by obtaining an Economic Injury Disaster Loan (EIDL) based on false information. Court records show that Clifton created Jazzy Jas LLC, an online retail clothing sales business, in April 2019. On July 24, 2020, Clifton submitted a fraudulent loan application to the SBA for Jazzy Jas, despite the fact the company had been dissolved by Clifton several months prior. As a result of the fraudulent application, which included false information about revenues and a fraudulent tax document, Clifton obtained $149,900 in disaster relief funds that were intended to be provided to an existing business harmed by the COVID-19 pandemic. On or about August 14, 2020, the EIDL funds were deposited directly into Clifton’s bank account. Clifton used the government funds to make purchases at multiple diamond stores and at numerous retail stores, including at Nordstrom, Ikea, Neiman Marcus, Rooms To Go, Louis Vuitton, Best Buy and other retail shopping outlets.
Clifton remained on bond following today’s guilty plea. The charge of wire fraud carries a maximum prison term of 20 years and a $500,000 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 Acting U.S. Attorney Stetzer thanked IRS-CI and USPIS for their investigation which led to the charges.
Assistant U.S. Attorney William Bozin, 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.
Bryson City Woman Is Sentenced to 21 Years for Distribution of A Controlled Substance Resulting in DeathRead the Press Release
ASHEVILLE, N.C. – Shannon White, 44, of Bryson City, N.C. was sentenced to 21 years in prison late yesterday for distribution of a controlled substance resulting in death, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Chief U.S. District Judge Martin Reidinger ordered White to serve three under court supervision after she is released from prison.
Sheriff Curtis A. Cochran of the Swain County Sheriff’s Office and 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, join Acting U.S. Attorney Stetzer in making today’s announcement.
According to evidence presented at Shannon’s trial, witness testimony and documents filed in the case, White, who is an enrolled member of the Eastern Band of Cherokee Indians and resident of the Cherokee Indian Reservation, was involved in the distribution of narcotics in an around Jackson and Swain Counties. Trial evidence established that on January 27, 2019, a victim, identified in court documents as J.F., ordered heroin from White. White agreed to supply the heroin to J.F. and supplied him with a substance that White believed to be heroin, but turned out to be fentanyl. According to trial testimony, J.F.’s use of the fentanyl resulted in J.F.’s overdose death. According to trial evidence, White continued to sell narcotics even after she became aware of the J.F.’s death, and falsely accused two other individuals of committing the crime.
"White peddled fentanyl, a highly toxic drug that resulted in a fatal overdose, and brazenly continued to distribute the lethal opioid even after she learned of the victim’s death,” said Acting U.S. Attorney Stetzer. “White’s 21-year sentence imposed by the Court reflects the severity of her conduct and the detrimental role drug dealers play in spreading deadly substances that plague communities and cause tragic deaths. The U.S. Attorney’s Office will continue to work closely with our law enforcement and community partners to combat the opioid epidemic."
“The death involved in this investigation underscores the seriousness of our country’s dependence on prescription opioids,” said the Special Agent in Charge Murphy. “In this case, the victim’s life was cut short, after consuming what turned out to be a deadly dose of fentanyl. Consequently, White will spend well-deserved time in federal prison. DEA and our law enforcement partners will continue to expend our time, energy and resources in an effort to stem the tide against the opioid epidemic.”
“The death involved in this investigation underscores the seriousness of our country’s dependence on prescription opioids,” said the Special Agent in Charge Murphy. “In this case, the victim’s life was cut short, after consuming what turned out to be a deadly dose of fentanyl. Consequently, White will spend well-deserved time in federal prison. DEA and our law enforcement partners will continue to expend our time, energy and resources in an effort to stem the tide against the opioid epidemic.”
“The Swain County Sheriff’s Office is pleased to be a part of this investigation to bring this person to justice. We hope this brings some closure to the family of the victim in this case. We will continue to fight the drug problem in Swain County and will aggressively pursue anyone who sells or gives drugs to anyone that causes their death,” said Sheriff Cochran.
White is currently in custody. She will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement Acting U.S. Attorney Stetzer commended the Swain County Sheriff’s Office and the DEA in Asheville for their investigation of this case and thanked the FBI and the Cherokee Indian Police Department for their invaluable assistance.
Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Joint Law Enforcement Efforts in Union County Result in Lengthy Sentences for Five Drug and Gun OffendersRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that five individuals have been sentenced to date on drug and gun charges as a result of proactive investigations led by federal and local law enforcement in Union County.
The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Federal Bureau of Investigation (FBI), and the Drug Enforcement Administration (DEA) partnered with the Union County Sheriff’s Office and the Monroe Police Department in joint investigations to identify drug and gun offenders operating in and around Union County. The investigative teams engaged in undercover operations including controlled buys of narcotics and illegal firearms. Over the course of the investigations, law enforcement also seized methamphetamine, crack cocaine, fentanyl, and 56 firearms.
Of the 13 defendants charged in connection with these investigations, five have been sentenced to date as follows:
- Princeton Patterson, 33, of Wadesboro, N.C., was sentenced today to 188 months in prison and four years of supervised release. Patterson pleaded guilty to distribution and possession with intent to distribute cocaine and methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a felon. (Docket No. 3:20-cr-221)
- Markiel Tyson, 29, of Pageland, South Carolina, was sentenced today to 120 months in prison and four years of supervised release, after pleading guilty to distribution and possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. (3:20-cr-221)
- Cameron Jamal McManus, 29, also of Pageland, was ordered today to serve 120 months in prison followed by four years of supervised release. He pleaded guilty to possession with intent to distribute crack cocaine and possession of a firearm in furtherance of a drug trafficking crime. (3:20-cr-221)
- On May 13, 2021, Rico Lorodge Brown, 32, of Monroe, N.C., was sentenced to 180 months in prison and four years of supervised release, after pleading guilty to possession of a firearm by a felon. (3:20-cr-223)
- Alvin Thomas, Jr., 41, of Charlotte, was sentenced on May 13, 2021, to 120 months in prison and four years of supervised release. He pleaded guilty to distribution and possession with intent to distribute crack cocaine. (3:20-cr-278)
The following defendants have pleaded guilty and are currently awaiting sentencing.
- Santuron Cureton, 39, of Lancaster, South Carolina, has pleaded guilty to possession of a firearm by a felon, distribution and possession with intent to distribute crack cocaine, and possession of a firearm in furtherance of a drug trafficking crime. (3:20-cr-216)
- Jamorris Demonte Sanders, 21, of Chester, South Carolina, has pleaded guilty to distribution and possession with intent to distribute crack cocaine, dealing firearms without a license, and distribution and possession with intent to distribute fentanyl. (3:20-cr-218)
- Timonth Antonio Flanagan, 35, of Lancaster, has pleaded guilty to crack cocaine trafficking conspiracy and distribution and possession with intent to distribute crack cocaine. (3:20-cr-218)
- Chareo Demarcus Johnson, 21, of Lancaster, has pleaded guilty to possession of a firearm by a felon and distribution and possession with intent to distribute methamphetamine. (3:21-cr-66)
- Diante Ramon Brown, 22, of Rock Hill, South Carolina, has pleaded guilty to distribution and possession with intent to distribute fentanyl, possession of a firearm in furtherance of a drug trafficking crime, and distribution and possession with intent to distribute crack cocaine. (3:20-cr-222)
- Elliott Carmel Fincher, 32, of Marshville, N.C., has pleaded guilty to possession of a firearm by a felon. (3:20-cr-217)
- Larry Eddie Crowder Jr., 32, of Waxhaw, N.C., has pleaded guilty to distribution and possession with intent to distribute crack cocaine. (3:20-cr-219)
- Bridget Cherie Chambers, 32, of Monroe, has pleaded guilty to distribution and possession with intent to distribute methamphetamine. (3:20-cr-27).
In making today's announcement Acting U.S. Attorney Stetzer commended the ATF, FBI, DEA, the Union County Sheriff's Office and the Monroe Police Department for their investigative efforts.
The prosecution for the government was handled by Assistant U.S. Attorney David Kelly and Special Assistant U.S. Attorney (SAUSA) Stephanie Spaugh. Ms. Spaugh is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Ms. Spaugh is duly sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 26th Prosecutorial District and the United States Attorney’s Office.
Federal Judge Sentences Whittier, N.C. Man to Prison for Firearm OffenseRead the Press Release
ASHEVILLE, N.C. – Today, Chief U.S. District Judge Martin Reidinger sentenced Michael James George, 46, of Whittier, N.C., to 30 months in prison followed by two years of supervised release for a firearm offense, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
According to filed court documents and today’s sentencing hearing, on January 17, 2020,
a CIPD officer arrested George in Jackson County on an outstanding Tribal warrant, after the officer observed George driving in a vehicle with false tags. At the time of the arrest, the CIPD officer searched the vehicle and recovered a pistol in the floorboard under the driver’s seat and 19 rounds of ammunition. George has a prior felony conviction and is prohibited from possessing a firearm or ammunition. On October 23, 2020, George pleaded guilty to possession of a firearm by a felon.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the Bureau of Indian Affairs and the Cherokee Indian Police Department for their investigation of the case.
Assistant United States Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
California Man Is Sentenced to 12 Years for Trafficking MethamphetamineRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced David Alexander Moralez, Jr., 37, of Fresno, California, to 12 years in prison and five years of supervised release for drug trafficking conspiracy, money laundering conspiracy, and distribution of methamphetamine, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. A federal jury convicted Moralez of the charges in November 2020.
According to evidence presented at trial, other court documents, and statements made in court, Moralez, who worked at a shipping company in Fresno, conspired with other drug traffickers to ship numerous parcels, each filled with multiple pounds of methamphetamine, from Fresno to various locations throughout North Carolina, South Carolina, and Tennessee, via the U.S. Postal Service and FedEx. As trial evidence established, two pounds of the shipped methamphetamine was further distributed and subsequently seized by law enforcement in December 2018, in Newton, N.C. and Hickory, N.C. Court records also show that members of the drug conspiracy used Walmart-to-Walmart transfers and Wells Fargo bank deposits to send proceeds back to California.
Judge Bell previously sentenced to prison three of Moralez’s co-defendants for their involvement in the conspiracy:
- Chha Chham, 43, of Mooresville, N.C., was sentenced to 20 years in prison and five years of supervised release.
- Kong Sayavong, 40, of Visalia, California, was sentenced to 10 years in prison, followed by five years of supervised release
- Hannah Olivia Secrest, 23, of Morganton, N.C., was sentenced to three years in prison and three years of supervised release.
The defendants were convicted as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) operation. According to court documents, since 2015, more than 200 individuals have been prosecuted and law enforcement has seized in excess of 200 kilograms of crystal methamphetamine, $1 million in U.S. currency and other assets, and several dozens of firearms. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement Acting U.S. Attorney Stetzer thanked the following agencies for their investigative efforts which led to the prosecution of this case: ICE’s Homeland Security Investigations (HSI) in Charlotte; HSI in Greenville and Nashville; the Drug Enforcement Administration’s Charlotte Field Office; the U.S. Postal Inspection Service in Charlotte; the North Carolina State Bureau of Investigation; the Alexander County Sheriff’s Office; the Burke County Sheriff’s Office; the Caldwell County Sheriff’s Office; the Catawba County Sheriff’s Office; the Cleveland County Sheriff’s Office; the Davie County Sheriff’s Office; the Johnson County, Tennessee Sheriff’s Office; the Lincoln County Sheriff’s Office; the Rutherford County, Tennessee Sheriff’s Office; the Boone Police Department; the Charlotte-Mecklenburg Police Department; the Gaston County Police Department; the Gastonia Police Department; the Hickory Police Department; the Huntersville Police Department; the Longview Police Department; the Morganton Department of Public Safety; the Mooresville Police Department; the Newton Police Department; and the Troutman Police Department.
Assistant U.S. Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Members of Identity Theft Ring Operating in Three States Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Four members of an identity theft ring operating in at least three states have been sentenced to prison, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
On Tuesday, May 25, 2021, U.S. District Judge Frank D. Whitney sentenced Dayton Louis Kolczak, 29, and Heather Westerfield, 37, both of Charlotte, to 71 months and 57 months in prison, respectively, and ordered each to serve three years under court supervision. Both Kolczak and Westerfield previously pleaded guilty to bank and wire fraud conspiracy and aggravated identity theft charges. Two other co-defendants, Kenneth D. Bennett-Rosario, 45, of Charlotte, and Jessica Bailey Sowell, 28, also of Charlotte, previously pleaded guilty to aggravated identity theft. Bennett-Rosario was sentenced to 39 months in prison, and Sowell was ordered to serve 24 months for their role in the scheme.
According to documents filed in this case and statements made in court, the ring operated in North Carolina, South Carolina, Georgia, and elsewhere, between October 2018 and September 2019. Court records show that Sowell and others in the ring obtained personal identification information (PII) of actual persons by various means, including stealing mail, over the internet, through real estate listings, and other public records. Kolczak made counterfeit North Carolina and South Carolina driver’s licenses in the victims’ names and PII but with photographs of the members of the ring.
According to court records, the co-conspirators used the counterfeit identification cards and stolen identities to obtain over $450,000 in fraudulent credit card accounts at retail store chains, such Lowe’s, Belk Department Stores, Kohl’s, and Target, to purchase or rent luxury vehicles, pay for rooms at various hotel chains, and to rent storage units, among other things. According to court records, in this manner, the co-conspirators used the stolen identities of at least 40 individuals. Over the course of the investigation, law enforcement seized printers, laptop computers, an embossing machine, a laminator, and other devices used to manufacture the fraudulent identification cards.
This case was the result of the investigative efforts of CMPD and the Secret Service. The CMPD and the Secret Service 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. Attorney Michael E. Savage, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charlotte Man Is Sentenced to 2 ½ Years in Prison for Aggravated Identity TheftRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn Jr. sentenced Twyjuan Demetric Jenkins, 29, of Charlotte, to 30 months in prison for aggravated identity theft charges, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Cogburn ordered Jenkins to remain under court supervision for a period of three years after he is released from prison, and to pay $75,150 in restitution.
On May 19, 2021, Judge Cogburn sentenced Jenkins’ co-defendant, Andrell Nachef Walker, 23, also of Charlotte, to 37 months in prison and three years of supervised release for his role in the scheme. Walker was also ordered to pay $75,150 in restitution, jointly and severally with Jenkins. The charges against a third co-defendant, Tyquis Syjuan Jenkins, are still pending.
According to filed court documents and statements made in court, from 2018 to May 2020, Twyjuan Jenkins, Tyquis Jenkins, and Walker were involved in an identity theft and fraud ring operating in and around Mecklenburg County. Court records show that the defendants used the stolen personal identifying information (PII) of actual persons, such as their names, dates of birth, Social Security numbers, and addresses, to withdraw and attempt to withdraw cash at banks, lease apartments, rent hotel rooms, and make and attempt to make fraudulent purchases of goods and services in excess of $95,000. Court documents also show that the co-conspirators, each of whom is a previously convicted felon, also used the stolen PII to obtain, possess, and use firearms and ammunition at two different shooting ranges in Mecklenburg County.
Twyjuan Demetric Jenkins previously pleaded guilty to conspiracy to commit aggravated identity theft and aggravated identity theft. Walker pleaded guilty to possession of a firearm by a felon.
Tyquis Syjuan Jenkins is charged in this case with conspiracy to commit identity theft, conspiracy to commit bank and wire fraud, bank fraud, making a false statement during the acquisition of a firearm, aggravated identity theft, possession of a firearm by a convicted felon. The charges against him are still pending and they are allegations. The defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the Charlotte-Mecklenburg Police Department, the U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms & Explosives for their investigation of this case.
Assistant U.S. Attorney Michael E. Savage, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Purlear, N.C. Man Is Sentenced to 25 Years for Production and Possession of Child PornographyRead the Press Release
CHARLOTTE, N.C. – William Jon Patric Ebert, 60, of Purlear, N.C. was sentenced today to 25 years prison for production and possession of child pornography, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney presided over today’s sentencing hearing and ordered Ebert to serve a lifetime of supervised release and to register as a sex offender after he is released from prison. A federal jury convicted Ebert on July 17, 2020, following a two-day trial.
Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI) joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents, evidence presented at trial, and today’s sentencing hearing, Ebert sexually abused a minor for more than six years. The sexual abuse took place in Ohio and in North Carolina. Evidence presented at trial established that Ebert also used the minor to produce child pornography photographs of the minor, and that he stored those photographs on his computer and other devices he owned. On September 22, 2016, law enforcement officials executed a search warrant at Ebert’s residence in Boone, N.C. and seized several devices and computers. A forensic analysis of Ebert’s hard drive revealed that it contained sexually explicit images of the minor victim.
In making today’s announcement Acting U.S. Attorney Stetzer thanked the North Carolina State Bureau of Investigation and the Avon Police Department in Ohio for their investigation of this case.
Assistant United States Attorneys Kimlani Ford and Erik Lindahl prosecuted the case for the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Charlotte Man Is Charged with Using Stolen Identities to Defraud Government-Funded Coronavirus Aid Relief Programs of More Than $200,000Read the Press Release
CHARLOTTE, N.C. – A criminal indictment was unsealed in federal court today, following Keon I. Taylor’s initial appearance on federal charges for allegedly using stolen identities to defraud government-funded coronavirus aid relief programs of more than $200,000, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Specifically, the criminal indictment charges Taylor, 30, of Charlotte, with eight counts of wire fraud, two counts of making a false statement to the U.S. Small Business Administration, three counts of aggravated identity theft, and one count related to possessing equipment that can be used to make fake identity documents.
Acting U.S. Attorney Stetzer 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 allegations contained in the indictment, from at least March 2020 through February 2021, Taylor engaged in a scheme to defraud the U.S. Department of Labor (DOL), the U.S. Small Business Administration (SBA), the North Carolina Division of Employment Security, and the States of Tennessee, Texas, Ohio, Massachusetts, Nevada, and Arizona by filing fraudulent claims for COVID-19 related unemployment insurance (UI) benefits using stolen information of identity theft victims. The indictment alleges that, as part of the scheme, Taylor obtained over the internet and elsewhere multiple victims’ stolen personal identifying information, or “PII,” including victims’ names, Social Security numbers, dates of birth, and addresses. Taylor used the stolen PII of more than 35 victims to apply for and receive over $219,000 in fraudulent unemployment benefits, and to submit numerous additional applications seeking fraudulent UI benefits. The indictment further alleges that Taylor also used false information to fraudulently apply for three Economic Injury Disaster Loans (EIDL) under the expanded CARES Act.
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.
U.S. District Judge David C. Keesler presided over Taylor’s initial appearance in magistrate court in Charlotte this morning.
The wire fraud charges carry a maximum sentence of 20 years in prison and a $250,000 fine per count, with additional penalties possible because the offenses relate to a presidentially declared emergency. The false statements to the SBA charges carry a maximum prison sentence of 30 years and a $1 million fine per count. The aggravated identity theft charges carry a minimum prison term of two years, consecutive to any other prison term imposed, per count. The charge of production, transfer, or possession of a document making implement or authentication feature carries a term of imprisonment of up to 15 years and a $250,000 fine.
The charges against Taylor are allegations and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the U.S. Postal Inspection Service for their investigative efforts which led to the charges. The prosecution for the government is handled by Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
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On May 17, 2021, U.S. Attorney General Merrick B. Garland announced the establishment of a the COVID-19 Fraud Enforcement Task Force to combat fraud related to the coronavirus epidemic. The Task Force will marshal the resources of the Department of Justice in partnership with agencies across the government to enhance enforcement efforts against wrongdoers seeking to exploit COVID-19 pandemic.
“The Department of Justice will use every available tool – including criminal, civil, and administrative actions – to combat and prevent COVID-19 related fraud. We look forward to working with our federal government colleagues to bring to justice those who seek to profit unlawfully from the pandemic,” wrote Attorney General Garland in a memo announcing the Task Force.
Organized and led by the Deputy Attorney General, the Task Force includes several entities within the Department of Justice, including the Criminal and Civil Division, the Executive Office for United States Attorneys, and the FBI. Key interagency partners, such as the Department of Labor, the Department of Treasury, the Department of Homeland Security, the SBA, the Special Inspector General for Pandemic Relief (SIGPR), the Pandemic Response Accountability Committee (PRAC), and others, have been invited to be part of the Task Force.
The Department of Justice and the U.S. Attorney’s Office for the Western District of North Carolina need the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed by the NCDF and referred to federal, state, local or international law enforcement or regulatory agencies for investigation. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
Denver, N.C. Man Pleads Guilty to Federal Charges for Defrauding His Former Employer of More Than $4 MillionRead the Press Release
CHARLOTTE, N.C. – Michael Guzman, 43, of Denver, N.C., appeared before U.S. District Judge David S. Cayer and pleaded guilty to federal charges for defrauding his former employer of more than $4 million, announced William T. Stetzer, Acting 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 Acting U.S. Attorney Stetzer in making today’s announcement.
According to the filed criminal information to which Guzman pleaded guilty, other documents filed in this case and statements made in court, from June 2019 to May 2020, Guzman executed a scheme to defraud his employer, identified in court documents as Company A, of more than $4 million, by improperly auctioning off Company A’s assets and funneling the proceeds through shell companies he formed to perpetuate the fraud.
According to plea documents, Guzman was employed by Company A from March 2008 until the company fired him for his conduct in May 2020. Company A is a large equipment rental company headquartered in Fort Mill, S.C., that rents out on-road and off-road machinery for construction and other purposes. During the relevant timeframe, Guzman worked for Company A as a Fleet Operations Manager, and was responsible for, among other things, the disposal of aged equipment, also known as assets.
As Guzman admitted in court today, during the relevant time period, he arranged for approximately 398 assets of Company A to be auctioned off through an online auction house that buys and sells used heavy construction equipment, referred to in court document as Company B. To perpetuate the fraud, Guzman represented to Company B that the assets were owned by Guzman’s shell companies, Second Life Equipment LLC and All Seasons Sales and Service, when in fact the majority of the assets were still owned by Company A. In his capacity as a Fleet Operations Manager, Guzman was able to hide the scheme from Company A by manipulating internal company records.
According to court documents, Guzman arranged for the proceeds of the sales to be sent to a bank account that he controlled, and used the fraudulent proceeds to buy a condominium in South Carolina, a plot of land in New York, an RV vehicle, a boat, and multiple cars and trucks.
Guzman pleaded guilty to wire fraud, which carries a maximum prison term of 20 years, and money laundering, which carries a statutory maximum of up to 10 years in prison. Guzman has also agreed to pay forfeiture money judgment in the amount of at least $4,044,475, which is the amount constituting the proceeds of the violations in the charging document, and to forfeit assets purchased with fraud proceeds, as well as monies in multiple bank accounts.
Guzman was released on bond following his guilty plea. A sentencing date has not been set.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI for their investigation which led to today’s guilty plea.
Assistant U.S. Attorney Maria Vento, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Husband and Wife Are Indicted for Stealing $200,000 from A High School Booster ClubRead the Press Release
CHARLOTTE, N.C. – The president of a Charlotte high school Booster Club and his wife have been indicted on federal charges for stealing more than $200,000 from the organization. The husband is also charged with fraudulently obtaining over $236,000 in COVID-19 relief funds to cover up the theft, announced William T. Stetzer, Acting 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, Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte, and Mona Passmore, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) join Acting U.S. Attorney Stetzer in making today’s announcement.
According to allegations contained in the eight-count indictment, between 2017 and June 2020, Anthony Sharper, 39, and Deana Sharper, 45, both of Charlotte, executed a scheme to defraud and embezzle at least $200,000 from a Charlotte-area high school Athletic Booster Club by writing checks to themselves for purported reimbursement, wiring funds directly to their personal bank account, and using the Booster Club’s debit cards and credit card to pay for personal expenditures. The indictment further alleges that, Anthony Sharper, who is a certified public accountant, also committed tax fraud by failing to to report any of the embezzled funds on the couple’s joint 2018 and 2019 tax returns filed with the IRS.
As alleged the indictment, to cover up the theft and to enrich himself, between March and May 2020, Anthony Sharper submitted three fraudulent applications for federal COVID-19 relief funds, including two fraudulent Paycheck Protection Program (PPP) loan applications, one in the name of the Booster Club and one in the name of his accounting firm, A. Sharper CPA, PLLC, and an Economic Injury Disaster Loan (EIDL) application to the Small Business Administration (SBA) on behalf of his CPA firm. All three applications contained false information, including fake revenues and fake payroll and employment data. As a result of the fraudulent applications, the indictment alleges that Anthony Sharper obtained more than $236,000 in COVID-19 relief funds intended for existing businesses harmed by the coronavirus pandemic. After receiving the loan proceeds, Anthony Sharper used the funds to pay for personal expenditures and to cover up the couple’s theft of the Booster Club’s funds.
Both Sharper and his wife are charged with wire fraud which carries a maximum penalty of 20 years in prison and a $250,000 fine. Anthony Sharper is also charged with two counts of making false statements to a financial institution, which carry a maximum prison term of 30 years and a $1 million fine per count; making a false statement to SBA, for which the maximum statutory penalty is 30 years in prison and a $1 million fine; two counts of engaging in monetary transactions in criminally derived property, which carry a maximum prison term of 10 years and a $500,000 fine per count; and two counts of filing a false tax return, which carry a maximum penalty of three years in prison and a $250,000 fine per count.
The criminal indictment also contains a notice of forfeiture, which gives notice that the defendants must forfeit to the United States all of the property, currency and monetary instruments involved in the offenses charged in the indictment. The government will pursue a forfeiture money judgment in the amount of at least $436,000, which the government contends constitutes the proceeds of the violations alleged in the charging document.
Anthony and Deana Sharper will be ordered by the U.S. District Court to appear on a summons for their initial appearance, which will be scheduled by the Court. The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI, USPIS, and IRS-CI investigated the case. The prosecution is handled by Assistant United States Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
Charlotte Man Is Sentenced to Nearly Five Years for Orchestrating an Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that Joseph Maurice Deberry, a/k/a Joseph Maurice Dewberry, 57, of Charlotte, was sentenced by U.S. District Judge Max O. Cogburn Jr. to serve 57 months in prison for orchestrating an investment scheme that defrauded victims of hundreds of thousands of dollars. Deberry was also ordered to serve three years under court supervision and to pay full restitution to his victims.
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 Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed plea documents and today’s sentencing hearing, from 2016 to June 2019, Deberry fraudulently obtained hundreds of thousands of dollars from more than a dozen investors. As part of the scheme, Deberry induced victims, many of whom he met through online dating platforms, to invest in entities with which he was affiliated, such as Pinnacle Investment Properties LLC and Place Capital Group LLC among others. Deberry typically represented to investors that their money would be used to further projects related to the construction of student housing at certain colleges in the Carolinas and other ventures.
To further promote the fraudulent scheme and to induce his victims to part with their money, Deberry lied about his education, employment background, and involvement in prior lawsuits and regulatory actions. He also lied about his previous success in student housing projects, and about how he would invest the victims’ money. For example, court documents show that Deberry lied about his studies at the London School of Economics even though he never attended, and falsely claimed that he had a successful career as an investment banker at Goldman Sachs, though he never worked there.
According to court documents, instead of using the victims’ money as he had represented, Deberry spent a significant portion of the victims’ funds to pay for personal expenses like rent, entertainment and travel. Deberry also actively concealed from his victims the fact that he was under a Cease and Desist Order from the state of North Carolina, which prohibited him from offering for sale, soliciting offers to purchase, or selling any securities in North Carolina. Deberry concealed this information from victims by, among other things, using the false name Maurice Dewberry.
On June 11, 2020, Deberry pleaded guilty to wire fraud.
In imposing the sentence today, the Court highlighted, among other things, the need to protect the public from further crimes of Deberry, who had defrauded a new victim even after he signed his plea agreement. The Court also took into account that Deberry had filed with the Court a fraudulent character letter on his behalf that purported to be from a former NFL player, when in reality the letter was a complete fabrication.
Deberry will be ordered to report to the federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility.
The FBI’s Charlotte Field Office and the USPIS handled the investigation.
Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte prosecuted the case.
U.S. Attorney's Office Cautions Taxpayers to Beware of Fraudulent Tax PreparersRead the Press Release
CHARLOTTE, N.C. – With this year’s tax filing deadline approaching quickly, Acting U.S. Attorney William T. Stetzer urges taxpayers to beware of fraudulent return preparers and warns dishonest preparers that violating federal tax laws can lead to criminal actions and stiff monetary penalties.
The IRS’s Dirty Dozen Tax Scams represents the worst of the worst tax schemes that taxpayers may encounter and typically peak during filing season. Unscrupulous tax preparers are once again listed as one of the most common tax fraud schemes.
“Taxpayers rely on tax return preparers for their expertise and assistance with filing honest and accurate tax returns. When crooked preparers violate that trust, federal prosecutors will be there to hold them accountable,” said Acting U.S. Attorney Stetzer.
To highlight its message of deterrence to those who engage in the preparation of fraudulent tax returns, commit tax fraud and potentially expose their clients to serious consequences, the U.S. Attorney’s Office highlights the following criminal actions against tax preparers who have violated federal law:
On March 25, 2021, Aminta Smith, of Charlotte, was sentenced to 30 months in prison and one year of supervised release and ordered to pay $171,017 as restitution to the IRS. According to the sentencing hearing, court documents and evidence presented at trial, Smith owned and operated a Charlotte-based tax preparation business, Touch by Angels Tax Services, also known as Touch by Angels Accounting Services and Smith Tax & Insurance Group, LLC. Between 2011 to 2016, Smith prepared fraudulent income tax returns for clients that claimed false education credits, false W-2 wages, and false Schedule C businesses to inflate the refunds paid by the IRS. In addition to filing fraudulent income tax returns for her clients, Smith falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2011 to 2015, and in some years failing to disclose that she was in engaged in the operation of a tax preparation business. In total, Smith caused more than $1 million in tax loss to the IRS.
On August 28, 2020, Elizabeth Pigatt, of Charlotte, was sentenced to four months in prison for filing false tax returns. According to court documents Pigatt owned and operated Pigatt Taxes Quick, a return preparation business in Charlotte. Beginning in at least 2012 and continuing through 2016, the defendant prepared income tax returns for clients that claimed false education credits, false Premium Tax Credits, and false Schedule C businesses to inflate refunds paid by the IRS. In addition to filing fraudulent income tax returns for her clients, Pigatt falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2013, 2014, and 2015, and in her 2012 through 2015 tax returns also falsely claimed education credits and the incorrect filing status. The tax loss associated with the offense was more than $250,000 but less than $550,000.
In July 2020, Joseph Octave, Vonyeda Carson, Wendia Courtois, Melissa Greene, Natisha Holloman, Kimberly Joline, and Whitney Vargas-Medrano, all of Charlotte, were charged with conspiring to defraud the United States, aiding and assisting in the preparation of false tax returns for their clients, and in some cases filing false personal tax returns. According to court documents, Octave owned and operated Kapital Financial Services, a tax return preparation business with two offices located in Charlotte. Since 2014, Octave and his employees, including Carson, Courtois, Vargas-Medrano, Greene, Holloman, and Joline conspired to defraud the United States by preparing and filing tax returns on behalf of clients that claimed fabricated and fraudulent items, including Schedule A deductions, Schedule C business income and losses, American Opportunity credits, education credits, and earned income tax credits. Octave, Greene, Joline, and Vargas-Medrano trained Kapital Financial Services employees to falsify federal income tax returns. The training material provided to employees included scripts and cheat sheets. Furthermore, Carson and Courtois filed false personal tax returns. All seven defendants have pleaded guilty and are awaiting sentencing.
The U.S. Attorney’s Office reminds taxpayers to visit IRS’s website for tips on choosing a preparer, and to obtain information on how to avoid unethical tax preparers. The U.S. Attorney’s Office also urges taxpayers to protect themselves against a wide range of other tax schemes. In addition to tax preparer fraud, taxpayers are urged look out for and to avoid the following common schemes:
- Phishing
- Fake Charities
- Threatening Impersonator Phone Calls
- Social Media Scams
- EIP or Refund Theft
- Senior Fraud
- Scams Targeting Non-English Speakers
- Offer in Compromise Mills
- Fake Payments with Repayment Demands
- Payroll and HR Scams
- Ransomware
IRS Criminal Investigation works closely with the Department of Justice to shut down scams and to prosecute the criminals behind them. Education is the best way to avoid these common schemes.
To learn more about the Dirty Dozen scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at www.irs.gov. Suspected tax fraud can be reported to the IRS using Form 3949-A found on the IRS.gov website. If you have been financially impacted by a tax return preparer’s misconduct or improper tax preparation practices you can file a complaint here.
Murphy, N.C. Resident Is Sentenced to Six Years for Distribution of Child PornographyRead the Press Release
ASHEVILLE, N.C. – On Tuesday, May 11, 2021, U.S. District Judge Max O. Cogburn Jr. sentenced Lawrence Keith Limon, 52, of Murphy, N.C. to 72 months in prison for distribution of child pornography, announced William T. Stetzer, U.S. Attorney for the Western District of North Carolina. Limon was also ordered to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, and Sheriff Derrick Palmer of the Cherokee County Sheriff’s Office join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed documents and statements made in court, from June 2017 to January 2019, Limon engaged in the online distribution of images depicting the sexual abuse of children. Court records show that law enforcement became aware that an individual, later identified as Limon, was distributing multiple child pornography using various internet platforms, including the social media blog platform Tumblr.com and a Gmail email account. On March 12, 2019, law enforcement executed a search warrant at Limon’s resident, seizing three electronic devices including a tablet, a cellphone and a laptop. A forensic analysis of the seized devices revealed that it contained more than 600 images of child pornography.
On November 30, 2020, Limon pleaded guilty to distribution of child pornography. He is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked HSI and the Cherokee County Sheriff’s Office for their investigation of this case.
Special Assistant U.S. Attorney (SAUSA) Alexis Solheim, with the U.S. Attorney’s Office in Asheville, prosecuted the case. Ms. Solheim is a state prosecutor with the office of the 43rd Prosecutorial District and was assigned by District Attorney Ashley Welch to serve as a SAUSA with the U.S. Attorney’s Office in Asheville. Ms. Solheim is duly sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 43rd Prosecutorial District and the United States Attorney’s Office.
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.
Federal Judge Sentences Monroe, N.C. Man to 20 Years for Receipt and Possession of Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad handed down a 20-year prison term today to Joseph Craig Rabon, 37, of Monroe, N.C., for possession and receipt of child pornography, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Rabon will also have to serve 30 years under supervised release and register as a sex offender after his term of incarceration.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to court filings, plea documents and statements made in court at today’s sentencing hearing, in August 2016, the FBI became aware that Rabon was using the internet to download child pornography. Court records show that Rabon used peer to peer software to access images and videos depicting the sexual abuse of children, including images portraying sadistic conduct and children under the age of 12. A forensic analysis of Rabon’s seized electronic devices revealed that he possessed more than 30 images and videos of child pornography.
Rabon was indicted by a federal grand jury in November 2018 and was subsequently released on bond. Court records show that, while on pretrial release, Rabon attempted to access and view pornography on the internet multiple times in violation of the Court’s terms and conditions of release. Court records also show that, after Rabon was taken into custody following his guilty plea, a minor victim came forward to report sexual abuse by Rabon over a five year period, which resulted in Rabon’s enhanced term of imprisonment today.
Rabon is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI for their investigation of this case.
Assistant U.S. Attorney Alfredo De La Rosa, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative 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.
Charlotte Man Is Sentenced to Nine Years for Possession of A Stolen FirearmRead the Press Release
CHARLOTTE, N.C. – Reggie Pettus, 25, of Charlotte, was sentenced today to nine years in prison and three years of supervised release for possession of a firearm by a felon, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Vincent C. Pallozzi, 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 Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and today’s sentencing hearing, in the early morning hours on September 18, 2019, Pettus approached a victim, identified in court documents as “MDS,” in front of the Epicenter in Charlotte, and took the victim’s gold chain from around his neck. At the time of the robbery, Pettus was in possession of a KelTec .380 caliber handgun. Law enforcement later determined the firearm had been stolen in Broward County, Florida. As described in court documents, MDS chased Pettus in an attempt to retrieve his necklace. Following a brief fight with the victim, Pettus brandished the stolen firearm and ran away. According to court documents, sometime soon thereafter, the victim saw Pettus on the street and shouted at him. Pettus fired three shots at the victim using the stolen firearm and then ran into the Epicenter garage. CMPD officers responding to the incident arrested Pettus after the victim saw Pettus again walking near the Epicenter and identified him as the person who had stolen his necklace.
Pettus is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the ATF and CMPD for their investigation of this case.
Assistant U.S. Attorney Michael Savage, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Acting U.S. Attorney William T. Stetzer Recognizes National Police WeekRead the Press Release
CHARLOTTE, N.C. – In honor of National Police Week, Acting U.S. Attorney William T. Stetzer recognizes the service and sacrifice of federal, state, local, and Tribal law enfrocement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.
“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”
“Throughout National Police Week and on Peace Officers Memorial Day, we join our federal, state, county, local and Tribal partners in recognizing the service and sacrifice of the law enforcement community, particularly the law enforcement officers who lost their lives in the line of duty in 2020. We are forever grateful to the fallen officers and their families for their service and sacrifice,” said Acting U.S. Attorney Stetzer.
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.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.
During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19. In the Western District of North Carolina, two officers died in the line of duty.
Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020. LEOKA statistics can be found on FBI’s Crime Data Explorer website.
The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 pm EDT. Among those honored will be Deputy Ryan Phillip Hendrix of the Henderson County Sheriff’s Office, and Officer Tyler Avery Herndon of the Mount Holly Police Department, who were both killed in the line of duty during 2020.
Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.
The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.
To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.
Charlotte Man Is Sentenced to 11+ Years for the Attempted Armed Robbery of A Convenience StoreRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn Jr sentenced James Tiwauna Murray, 24, of Charlotte, to 137 months in prison and three years of supervised release for the 2019 attempted armed robbery of a 7-Eleven convenience store, announced William T. Stetzer, Acting 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 Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and statements made in court, on September 9, 2019, at approximately 3:04 a.m., Murray, while armed with a handgun, entered the 7-Eleven convenience store, located at 5343 Monroe Road in Charlotte. Upon entering the store, Murray jumped over the counter and ran into the back office, where he encountered a store employee. Court records show that Murray told the store employee “this is a robbery” and shot the employee in the chest. Murray then ran out of the back office while the store employee pursued Murray. Murray shot at the store employee again and fled the scene without taking any of the store’s cash. The store employee reported the robbery to CMPD and Murray was arrested in the vicinity shortly thereafter.
On July 2, 2020, Murray pleaded guilty to attempted Hobbs Act robbery, which is the attempted robbery of a business engaged in interstate commerce.
Murray is currently in federal custody. He 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.
In announcing today’s sentence, Acting U.S. Attorney Stetzer thanked the FBI and CMPD for their investigation of the case.
Assistant U.S. Attorney Christopher Hess handled the prosecution.
Charlotte Man Is Sentenced to 13 Years for Robbing Two BanksRead the Press Release
CHARLOTTE, N.C. – Mario Edward Roane, 56, of Charlotte, was sentenced today to 151 months in prison on federal bank robbery charges, plus an additional five months in prison for violating his federal supervised release by committing the bank robberies, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also sentenced Roane to three years of supervised release and ordered him to pay $6,350 in restitution to the banks and a $200 special assessment to the court.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department (CMPD) join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and today’s sentencing hearing, on March 18, 2020, Roane robbed the First Citizens Bank branch located at 128 South Tryon Street in Charlotte. Upon entering the bank, Roane approached a bank teller and told her “this is a robbery…I have a gun.” The teller handed Roane $1,700 from the cash drawer and Roane fled the scene. Filed court documents show that five days later, on March 23, 2020, Roane robbed the Wells Fargo Bank branch located at 301 South Tryon Street in Charlotte. Roane entered the bank and waited in line for a teller. Once he arrived at the teller’s window, he demanded money and told the teller “Give me all your money, or I’ll blow your head off.” The teller complied and Roane left the bank with $4,650 in cash. According to court records, law enforcement identified Roane based on surveillance video from the banks. He was arrested on March 31, 2020. Court records show Roane has twice previously been convicted of federal bank robbery charges in the Western District of North Carolina and served two separate federal prison terms for those convictions. When Roane committed the two robberies in March 2020, he was on federal supervised release for his most recent federal bank robbery conviction.
On August 17, 2020, Roane pleaded guilty to two counts of bank robbery. He is currently in federal custody and upon designation of a federal facility he will be transferred into custody of the Federal Bureau of Prisons.
The FBI's Violent Crimes Task Force and CMPD investigated the case. The prosecution was handled by Assistant U.S. Attorney Taylor Stout of the U.S. Attorney’s Office in Charlotte.
Honduran National Is Sentenced to 30 Years for Producing Child PornographyRead the Press Release
CHARLOTTE, N.C. – Oscar Hernandez Maldonado, 48, a Honduran national residing in Charlotte, was sentenced today to 30 years in prison followed by a lifetime of supervised release for producing child pornography, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. also ordered Maldonado to register as a sex offender after his term of incarceration.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
Maldonado was charged via a criminal bill of information with inducing, enticing and coercing a minor to engage in sexually explicit conduct for the purpose of producing images of the sexual abuse. According to today’s sentencing hearing and documents filed with the Court, beginning in or about 2008, Maldonado sexually abused five minor victims, four females and one male, at various times and on multiple occasions over an eight-year period. A forensic analysis by HSI of Maldonado’s seized electronic devices revealed that Maldonado produced images depicting the sexual abuse of the minors and attempted to erase those images. In December 2019, Maldonado pleaded guilty to production of child pornography.
Maldonado 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.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked HSI for their outstanding investigation of the case and commended CMPD for their invaluable assistance.
Assistant United States Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form.
Charlotte Woman and Her Co-Conspirator Are Sentenced to Prison for Stealing $300,000 from an Elderly, Dementia-Afflicted VictimRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced that a Charlotte woman and one of her two co-conspirators were sentenced to prison today for their involvement in a $300,000 embezzlement scheme perpetrated on an elderly, dementia-afflicted victim.
Acting U.S. Attorney Stetzer is joined in making today’s announcement by Robert R. Wells, Special Agent in Charge for the FBI in North Carolina, Tommy D. Coke, Inspector in Charge of the of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, and Chief Joseph Hatley of the Mint Hill Police Department.
U.S. District Judge Max O. Cogburn Jr. sentenced Donna Graves, 58, to 97 months in prison and two years of supervised release. On October 2, 2020, a federal jury convicted Graves of conspiracy to commit wire fraud and money laundering conspiracy. Grave’s co-conspirator, Gerald Maxwell Harrison, 54, of Mint Hill, N.C., was ordered to serve three years in prison, followed by three years of supervised release. Harrison pleaded guilty in May 2020, to wire fraud conspiracy, interstate transportation of stolen property, and money laundering conspiracy. In addition to the prison terms imposed, Judge Cogburn also ordered Graves and Harrison to pay $298,407.85 as restitution, jointly and severally.
A third co-conspirator, Elizabeth Robin Williams, previously pleaded guilty to wire fraud conspiracy, interstate transportation of stolen property, and money laundering conspiracy and is currently awaiting sentencing.
According to filed court documents, evidence presented at Graves’ trial and witness testimony, including testimony provided by Harrison, from January 2015 through September 2019, Graves, who was the ringleader of the criminal conspiracy, conspired with Williams and Harrison to engage in a scheme to defraud a victim identified in court documents as “K.T.” The victim was an elderly widow who lived alone and suffered from dementia and other physical and mental challenges. During the relevant time period, Graves and her co-conspirators exploited K.T.’s vulnerabilities and defrauded the victim through a web of forged documents, lies, and deceptions.
According to evidence presented at Graves’ trial, beginning in 2014, Graves and Williams provided housekeeping services for the victim through a business owned and operated by Graves. Over the course of the scheme, the co-conspirators isolated the victim from her friends and family, induced the victim to give them power and control over her personal affairs, and fabricated a power of attorney purporting to give Graves and Williams control over the victim’s financial affairs. Once they gained access and control, Graves, Williams, and Harrison moved the victim out of her residence in Indian Land, South Carolina, first to an apartment in Charlotte, and later to a rental home in Mint Hill, refusing to let the victim’s friends and family know where she was living.
According to court records and trial testimony, Graves, Williams, and Harrison engaged in numerous illegal and unauthorized financial transactions that substantially depleted the victim’s money and property. Specifically, the co-conspirators emptied the victim’s bank accounts and used the money to pay for personal expenses, and “maxed out” at least one credit card in the victim’s name. The co-conspirators also fraudulently transferred or attempted to transfer the victim’s Indian Land residence to themselves by creating a quit claim deed purporting to gift the residence to Harrison; they then attempted to sell the residence and intended to split the proceeds amongst each other. They also pawned the victim’s jewelry, and they stole the victim’s federal benefits. Additionally, Williams unlawfully used the victim’s money to set up other businesses in her name, including a business selling handbags online and a business selling weight loss-related services. As a result of the fraudulent scheme, the co-conspirators defrauded the victim of approximately $300,000.
According to court documents and information presented at today’s sentencing hearing, over the course of the scheme, Graves and her co-conspirators failed to provide the victim with proper medical care, which greatly diminished the victim’s health. Furthermore, once the victim’s money was depleted, the co-conspirators abandoned the victim, who was later moved to a nursing home in New York, where she passed away in large part due to the mental and physical deterioration she had suffered in the hands of Graves and her co-conspirators.
In announcing Graves’s sentence, Judge Cogburn said the defendants knew that the victim was vulnerable and that this was a shameful manipulation of a person. Judge Cogburn also said the defendant’s made “the last part of her (the victim’s) life the worst part of her life.”
Graves will be ordered to report to the federal Bureau of Prisons to begin serving her sentence upon designation of a federal facility. Harrison is currently in custody. A sentencing date for Williams has not been set. Williams faces a maximum penalty of 20 years in prison and a $250,000 fine for the wire fraud conspiracy charge carries. The statutory maximum penalty for the money laundering conspiracy charge is 20 years in prison and a $500,000 fine, and the interstate transportation of stolen property charge carries a maximum prison term of 10 years and a $250,000 fine.
In making today’s announcement, Acting U.S. Attorney Stetzer commended the Mint Hill Police Department, the FBI, and USPIS for their investigation of this case.
Assistant United States Attorneys Kenneth M. Smith and Caryn D. Finley, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
June 15TH Is World Elder Abuse Awareness Day
June 15, 2021, is World Elder Abuse Awareness Day (WEAAD). First launched in 2006 by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations, the purpose of WEAAD is to raise awareness about abuse and neglect toward the elderly and to prevent elder exploitation.
According to the National Council on Aging, elder abuse is a silent problem that robs seniors of their dignity, security, and – in some cases – it costs them their lives. “Up to five million older Americans are abused every year, and the annual loss by victims of financial abuse is estimated to be at least $36.5 billion.”
Combating elder abuse and financial fraud targeted at older adults is a key priority of the Department of Justice and the U.S. Attorney’s Office for the Western District of North Carolina. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10% of older Americans every year.
Together with our law enforcement partners, the Justice Department and the U.S. Attorney’s Office are committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, victim services and public awareness. Visit the Justice Department’s Elder Justice Initiative to learn more about available resources, including how to report elder abuse and financial exploitation.
Former Tennis Coach Is Sentenced to 25 Years for the Sexual Exploitation of A MinorRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced that U.S. District Judge Max O. Cogburn Jr. sentenced Benjamin Swain, 47, of Charlotte, late yesterday, to 25 years in prison, on charges of sexual exploitation of a minor.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Jonny Jennings for the Charlotte-Mecklenburg Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
According to court filings, plea documents and statements made in court, Swain was a tennis coach in the greater Charlotte area. As Swain previously admitted in court, beginning in at least 2016, and on at least two different occasions, Swain secretly recorded three minors while they were undressing and showering. On December 9, 2019, Swain pleaded guilty to sexual exploitation of a minor. Swain was previously sentenced to 12 years in prison, after pleading guilty to Child Molestation and Enticing a Child for Indecent Purposes in an unrelated case prosecuted by the state of Georgia.
In announcing Swain’s sentence, Judge Cogburn said that the sentence should deter other coaches and people who serve in similar positions from committing similar crimes.
Swain is currently in federal custody. He will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility. Swain, who is a British citizen, will also be subject to deportation proceedings upon completion of his federal sentence. If Swain is not deported, or later returns to the United States, he was ordered by Judge Cogburn to serve a lifetime of supervised release and to register as a sex offender.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI, CMPD, and the Bibb County Sheriff’s Office in Georgia for their investigation of the case.
Assistant United States Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Eight Drug Traffickers Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Eight members of a drug trafficking ring operating in and around Union County were handed down sentences ranging from 30 to 300 months in prison today, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
According to court filings, plea documents, and statements made in court, the eight defendants are members of the Garcia Family drug trafficking organization (DTO). Over the course of the investigation, which began in April 2019, the defendants operated as a drug conspiracy and trafficked narcotics, including heroin, cocaine, and methamphetamine, in Union County and surrounding areas and involving the seizure of more than 16 kilograms of methamphetamine. The eight defendants were sentenced as follows:
- Elio Garcia Godinez, 32, of Monroe, N.C. was sentenced to 300 months in prison and five years of supervised release.
- Ivan Jardon Trujillo, 48, of Monroe, N.C. was sentenced to 156 months in prison and five years of supervised release.
- Ivan Trujillo Garcia, 23, of Monroe, N.C. was sentenced to 87 months in prison and four years of supervised release.
- Eleonel Castrejon Garcia, 24, of Monroe, N.C. was sentenced to 120 months in prison and five years of supervised release.
- Estefani Garcia Sandoval, 26, of Monroe, N.C. was sentenced to 30 months in prison and two years of supervised release.
- Luis David Bravo, 47, of Monroe, N.C. was sentenced to 60 months in prison and two years of supervised release.
- Miguel Benitez Castrejon, 40, of Monroe, N.C. was sentenced to 97 months in prison and two years of supervised release.
- Matilde Isaias Cruz Portillo, 36, of Atlanta, Georgia, was sentenced to 84 months in prison and two years of supervised release.
In making today’s announcement, Acting U.S. Attorney Stetzer praised the outstanding efforts of the FBI, ATF, DEA, the Monroe Police Department and the Union County Sheriff’s Office for their investigation which led to today’s outcome. Acting U.S. Attorney Stetzer also noted the assistance provided by ICE – Enforcement & Removal Operations and the Wadesboro Police Department.
Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Drug Trafficker Is Sentenced to Nine YearsRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn Jr. sentenced today Juan Jose Benton, 46, of Charlotte, N.C. to 108 months in prison to be followed by a term of supervised release for possession of a firearm in furtherance of a drug trafficking crime, announced William T. Stetzer, Acting 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 Johnny Jennings, Chief of the Charlotte-Mecklenburg Police Department, join U.S. Attorney Stetzer in making today’s announcement.
According to court documents and today’s sentencing hearing, from at least 2013 to 2018, Benton was the leader of a drug trafficking ring operating in Mecklenburg County. Over the course drug conspiracy, Benton regularly purchased multiple kilograms of cocaine, which he distributed in bulk quantities to other drug traffickers in the greater Charlotte area. Court records show that on March 13, 2018, law enforcement executed a search warrant at Benton’s residence in Waxhaw, N.C., where they seized approximately $2 million in cash from the defendant’s basement. Elsewhere in the residence, law enforcement recovered two firearms and more cocaine. On the same date, law enforcement conducted a traffic stop of the vehicle Benton was driving, from which they recovered more than $76,900 in cash. Also on that date, a second search warrant was executed at a storage unit rented by the defendant at a facility in Charlotte, in which they found more than four kilograms of cocaine, over eight pounds of marijuana, and more than $315,000 in drug proceeds.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the DEA, and Charlotte-Mecklenburg Police Department for handling the investigation.
Assistant U.S. Attorneys William Bozin and Lambert Guinn, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Hendersonville Man Is Sentenced to 22 Years for the Sexual Exploitation of A ChildRead the Press Release
ASHEVILLE, N.C. – Today, Chief U.S. District Judge Martin Reidinger sentenced Jeffrey Allen Buley, 58, of Hendersonville, N.C., to 22 years in prison for the sexual exploitation of a child, announced Acting U.S. Attorney William T. Stetzer. Judge Reidinger also ordered Buley to serve a lifetime of supervised release, to register as a sex offender after he is released from prison, and to pay $7,602.23 as restitution to his victim.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, and Chief C. Blair Myhand of the Hendersonville Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
According to court documents and today’s sentencing hearing, law enforcement learned that Buley was using the Discord messaging app to communicate with a minor male. Court records show that the communications were sexual in nature, and, on at least one occasion, Buley instructed the minor to transmit live video of himself engaging in sexually explicit conduct. On July 30, 2019, HSI agents executed a search warrant at Buley’s residence, seizing Buley’s cell phone and other electronic devices. A forensic analysis of the devices revealed that Buley used the internet to distribute and receive child pornography and to engage in sexually explicit online chats concerning minors. On June 22, 2020, Buley pleaded guilty to sexual exploitation of a child.
Buley is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
In making todays’ announcement, Acting U.S. Attorney Stetzer thanked HSI and the Hendersonville Police Department for their investigation of the case.
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.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form.
Federal Jury Convicts Former Wells Fargo Employee of Child PornographyRead the Press Release
STATESVILLE, N.C. – A federal jury sitting in Statesville has convicted a former Wells Fargo Information Technology (IT) employee of child pornography charges, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. The jury found Michael Scott Hoover, 50, of Wilkesboro, N.C., guilty of two counts of production and one count of possession of child pornography. U.S. District Judge Kenneth D. Bell presided over the two-day trial which ended late yesterday.
Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), and Sheriff Chris Shew of the Wilkes County Sheriff’s Office join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents, evidence presented at trial and witness testimony, between June 2018 and August 2019, Hoover produced child pornography on two different occasions by using two minor victims to engage in sexually explicit conduct, which Hoover recorded on his work cell phone. According to witness testimony, the child pornography was found on Hoover’s work cell phone during an internal investigation by his employer at the time, Wells Fargo. Trial evidence established that videos and images recovered from Hoover’s work cell phone depicted minor males as young as 12 years old engaging in sexually explicit conduct.
Following the guilty verdict, Hoover was remanded into federal custody. A sentencing date has not been set. The possession of child pornography charge carries a maximum prison term of 10 years and a $250,000 fine. The charge of production of child pornography carries a mandatory minimum sentence of 15 years and a maximum of 30 years in prison per count and a $250,000 fine.
In making today’s announcement, Acting U.S. Attorney Stetzer commended the investigative work of the HSI, SBI, and the Wilke’s County Sheriff’s Office.
The prosecution for the government was handled by Assistant U.S. Attorney Cortney Randall, of the U.S. Attorney’s Office in Charlotte, and Special Assistant U.S. Attorney (SAUSA) Stephanie Spaugh. Ms. Spaugh is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Ms. Spaugh is duly sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 26th Prosecutorial District and the United States Attorney’s Office.
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.
North Carolina Man Is Indicted for $1.5 Million Covid-Relief FraudRead the Press Release
CHARLOTTE, N.C. – A federal grand jury in Charlotte has indicted a North Carolina man for fraudulently obtaining more than $1.5 million in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Paycheck Protection Program (PPP), announced William T. Stetzer, Acting 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 Mona Passmore, Acting Special Agent in Charge of the of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, join Acting U.S. Attorney Stetzer in making today’s announcement.
According to allegations in the federal indictment, Maurice Kamgaing, 41, of Archdale, N.C., and a former Charlotte resident, fraudulently obtained more than $1.5 million in COVID-relief funds, by submitting fraudulent PPP loan applications to a federally insured financial institution on behalf of two businesses. The indictment alleges that the two PPP loan applications contained false and misleading information and fraudulent supporting documentation about the two businesses, including fake federal tax filings and payroll reports.
As alleged in the indictment, on April 7, 2020, Kamgaing filed a fraudulent application for a PPP loan for Apiagne, Inc. (Apiagne). The Apiagne PPP application allegedly included false information about the company’s purported payroll, and fraudulent documentation about its monthly payroll disbursements. For example, according to the indictment, Apiagne’s PPP loan application falsely represented that the company had an average monthly payroll of $260,000 and needed the loan to support its ongoing operation and its 46 employees. As a result of the fraudulent representations, on or about May 6, 2020, Apiagne received a PPP loan for $856,463, which Kamgaing used for unauthorized purposes and for his personal benefit.
According to allegations in the indictment, on April 27, 2020, Kamgaing filed another fraudulent PPP loan application on behalf of AKC Solutions, which falsely represented that the company had 23 employees, and had an average payroll of $260,000. As a result of the fraudulent representations, a PPP loan for $650,000 was disbursed by a financial institution on May 5, 2020, and within days of receiving the loan Kamgaing allegedly used the proceeds for improper purposes and personal expenses.
Kamgaing is charged with wire fraud in relation to a disaster benefit which carries a maximum prison sentence of 30 years in prison; two counts of making false statements to a bank which carry a maximum penalty of 30 years in prison per count; and two counts of engaging in monetary transactions in criminally derived property, which carry a maximum prison term of 10 years per count.
The charges in the indictment are allegations. The defendant is innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI and IRS-CI for their investigation of this case.
Assistant U.S. Attorney Caryn Finley, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
Cleveland County Man Is Sentenced to 11+ Years in Prison for Receipt of Child PornographyRead the Press Release
ASHEVILLE, N.C. – A Cleveland County man has been sentenced to 135 months in prison today for receipt of child pornography, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Quinlan Drake Scism, Jr., 21, of Kings Mountain, N.C. was also ordered to serve a lifetime under court supervision and to register as a sex offender after he is released from prison, and to pay $35,000 in restitution to child pornography victims and a $5,000 special assessment.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Sheriff Alan Norman of the Cleveland County Sheriff’s Office join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and today’s sentencing hearing, the FBI became aware that an individual, later identified as Scism, was using a file sharing program on the dark web to receive child pornography. On September 23, 2019, the FBI executed a search warrant at Scism’s residence, seizing a thumb drive and a computer. The following day, while he was being interviewed at the Cleveland County Sheriff’s Office, Scism acknowledged that he viewed and downloaded child pornography from the internet and admitted to attempting to conceal his online activity on his cell phone when he learned about the FBI’s investigation. Scism also admitted that, as a teenager, he sexually abused a minor female. According to court records, a forensic examination of Scism’s seized devices revealed that he possessed 959 images and 48 videos of child pornography, some of which depicted sadistic and masochistic acts against prepubescent children.
During the time law enforcement were conducting the child pornography investigation into Scism, the Cleveland County Sheriff’s Office was contacted by park rangers with Crowders Mountain State Park concerning unusual activity and behavior exhibited by Scism while he was at the park. Court records show that, on at least two occasions, Scism was observed hiding in or leaving the women’s restrooms at the park. Due to his behavior, Crowders Mountain State Park sent a letter to Scism prohibiting him from entering the park.
On September 11, 2020, Scism pleaded guilty to receipt of child pornography. He is currently in federal custody and he will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer commended the FBI and the Cleveland County Sheriff’s Office for their investigation of this case.
The prosecution for the government was handled by the U.S. Attorney’s Office in Asheville.
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.
U.S. Attorney's Office Commemorates National Crime Victims' Rights WeekRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer joins the Department of Justice and communities nationwide in observing National Crime Victims’ Rights Week and
celebrating victims’ rights, protections and services throughout the week. This year’s observance takes place April 18-24 and features the theme, “Support Victims. Build Trust. Engage Communities.”
The Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs, leads communities throughout the country in their annual observances of NCVRW by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. OVC supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.
“National Crime Victims’ Rights Week is a time to honor and remember the millions of Americans who have suffered the shock and trauma of criminal victimization. We stand by these brave survivors and their families,” said Acting U.S. Attorney Stetzer. “This week, we also recognize and commend the thousands of victim advocates who serve crime victims with dedication and work tirelessly to advance victims’ rights, and support survivors with skill and compassion.”
The United States Attorney’s Office will commemorate the advancement of victims’ rights and highlight issues surrounding victimization by holding a Virtual Ceremony on Tuesday, April 20, 2021 at 11:00 am. This program is co-hosted by the U.S. Attorney’s Offices for the Eastern and Middle Districts of North Carolina, the Victim Services Interagency Council of North Carolina, the North Carolina Department of Justice, and the Durham and Raleigh Police Departments. The keynote speaker is Ms. Deanna Walters, a survivor of intimate partner violence whose abuser was prosecuted by this office. Ms. Walters’ story was also featured on the 2014 award winning documentary titled “Private Violence.” Those interested in joining the event can register using this link: https://usao.webex.com/usao/onstage/g.php?MTID=e0bb75a52a534a276abd6c3647b5a5d67.
For additional information about this year’s NCVRW and additional ideas on how to support victims of crime, visit OVC’s website at https://www.ovc.ojp.gov/.