Western District of North Carolina
Press releases recorded for this federal judicial district.
Atlanta Tax Professionals Plead Guilty to Promoting Syndicated Conservation Easement Tax Scheme Involving More Than $1.2 Billion in Fraudulent Charitable DeductionsRead the Press Release
CHARLOTTE, N.C. – On Monday, December 21, 2020, Stein Agee, 42, of Canton, Georgia and Corey Agee, 38, of Atlanta, Georgia, appeared before U.S. Magistrate Judge W. Carleton Metcalf and entered guilty pleas to conspiracy charges related to their roles in a wide-ranging scheme to defraud the IRS with respect to the assessment and collection of U.S. individual income taxes, announced United States Attorney for the Western District of North Carolina R. Andrew Murray, Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, and Commissioner Charles Rettig of the IRS.
According to court documents, from at least 2013 through at least December of 2019, S. Agee and C. Agee, then partners at an Atlanta accounting firm, conspired with others to develop, market, promote, and sell investments in fraudulent syndicated conservation easement (SCE) tax shelters to high-income taxpayers.
“The defendants’ and their co-conspirators' criminal conduct enabled their clients to claim more than $1.2 billion in fraudulent tax deductions and generated hundreds of millions of dollars of tax loss to the United States,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department's Tax Division. “Their convictions signal just the beginning of the department’s prosecutive efforts. Taxpayers engaging in such schemes, and the lawyers, accountants, appraisers and other professionals that enable them, should understand that they will be held fully to account for their fraudulent conduct.”
“Each year, millions of law-abiding Americans painstakingly file accurate tax returns and pay timely their tax obligations, which support important government services our communities rely on,” said U.S. Attorney Murray. “As the defendants admitted in court today, their tax shelter scheme helped wealthy clients skirt their tax responsibilities and avoid paying their fair share. Such actions not only increase the tax burden on honest taxpayers; they are a violation of our federal tax laws. Today’s guilty pleas send a strong message that tax professionals who promote, and benefit from, illegal tax shelters will be investigated and prosecuted accordingly.”
“Two defendants pleaded guilty today in the first-ever criminal case by IRS-CI involving conservation easements,” said Commissioner Charles Rettig of the IRS. “It should be considered the next step in the IRS’ battle against abusive SCEs. The defendants and their co-conspirators used conservation easement donations to personally enrich themselves and allow wealthy tax clients to evade their tax obligations. The charges and guilty pleas demonstrate that participation in abusive SCEs will not be tolerated. Once again, the IRS recommends that anyone who participated in an abusive SCE consult independent counsel about coming into compliance.”
Congress created the option to deduct the value of a donated conservation easement from an individual’s taxable income as a tool for the protection of environmentally and historically important land. A conservation easement restricts the future use or development of a parcel of land in order protect its conservation value. When created and used in a legitimate way, in compliance with the Internal Revenue Code, a conservation easement can both protect the environment and provide tax incentives to the landowner. In contrast, abusive SCE tax shelters are designed to game the system and to generate inflated and unwarranted tax deductions, often through the procurement of inflated appraisals for the undeveloped land and through the sale of interests in partnerships devoid of any legitimate business purpose beyond the transfer of tax benefits.
Here, the Agees’ co-conspirators designed the SCE tax shelters to produce large pass-through tax deductions for high-income taxpayers who bought shares in partnerships and LLCs that purported to make “real estate investments” in plots of land. In reality, however, these “investment” transactions lacked economic substance and served no legitimate business purpose beyond the purchase and sale of tax benefits. The placement of conservation easements over the real estate purchased by the “investment” partnerships—as opposed to the development of the real estate, or any other approach to generating a profit—was always a foregone conclusion, and the co-conspirators marketed the opportunities to their clients as straightforward tax transactions designed to reduce the clients’ tax liabilities. For example, S. Agee and C. Agee marketed the SCE tax shelters by promising investors that, for every $1 invested in the partnership, the investor would receive more than $4 in “charitable” tax deductions, with no economic risk.
Furthermore, according to court documents, S. Agee, C. Agee, and their co-conspirators often solicited investors after the end of the relevant tax year, and advised them to fraudulently backdate payments and documents so it would appear that their “investments” in the SCE tax shelters were, in fact, in compliance with applicable tax laws. S. Agee and C. Agee also prepared and assisted in the preparation of false tax returns for clients who agreed to invest in the SCE shelters. In exchange for their promotion of the abusive SCE tax shelters, between 2013 and 2019, S. Agee and C. Agee each received more than $1.7 million in commissions from the developer of the SCE tax shelters.
S. Agee and C. Agee both pleaded guilty to one count of conspiracy to defraud the United States, which carries a maximum penalty of five years in prison.
U.S. Attorney Murray, Principal Deputy Assistant Attorney General Zuckerman, and IRS Commissioner Rettig, thanked special agents of IRS-Criminal Investigation and the United States Postal Inspection Service, who are conducting the investigation, as well as Assistant United States Attorneys Daniel Bradley and Caryn Finley, and DOJ-Tax Division Trial Attorneys Brittney Campbell and Grace Albinson, who are prosecuting the case.
Catawba County Man Is Sentenced to 6.5 Years for Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell sentenced Darren Eugene Matthews, 46, of Conover, N.C. to 78 months in prison yesterday on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Matthews was also ordered to serve a lifetime of supervised release and to register as a sex offender upon completion of his prison term.
Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office joins U.S. Attorney Murray in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, in November 2019, a detective with the Catawba County Sheriff’s Office received information that an individual, later identified as Matthews, was emailing child pornography over the internet. Court records show that some of the images depicted children, some as young as toddlers, being sexually abused. On November 22, 2019, Law enforcement executed a search warrant at Matthews’ residence and seized numerous electronic devices. A forensic examination of the devices revealed that Matthews possessed more than 1,300 files of child pornography.
In August 2020, Matthews pleaded guilty to receipt of child pornography. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney Murray commended the investigative work of the Catawba County Sheriff’s Office. 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 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 Restaurant Owner and Son Charged with COVID-Relief FraudRead the Press Release
Two individuals were charged in an indictment that was unsealed today for their alleged participation in a scheme to obtain, through multiple fraudulent loan applications, more than $1.7 million in COVID-19 relief guaranteed by the Small Business Administration through the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney R. Andrew Murray of the Western District of North Carolina made the announcement.
Izzat Freitekh, 55, of Waxhaw, North Carolina, and his son Tarik Freitekh, also known as Tareq Freitekh, 33, whose last known residence was in Glendale, California, were each charged in an indictment filed in the Western District of North Carolina with one count of conspiracy to commit wire fraud and one count of bank fraud. In addition, Izzat Freitekh was charged with one count of false statements.
The indictment alleges that the defendants submitted and caused to be submitted fraudulent PPP loan applications on behalf of three sets of companies:
- Applications that included false and fraudulent IRS tax documentation submitted on behalf La Shish Kabob Restaurant located in Charlotte, and, separately, La Shish Catering.
- An application which included fraudulent IRS tax documents submitted on behalf of Green Apple Catering LLC (Green Apple), representing that Green Apple paid $4.8 million to employees in 2019 despite evidence that the company did not exist until March 2020.
- An application that included false company payroll information and fraudulent IRS tax documents submitted on behalf of Aroma Packaging Systems.
The indictment further alleges that Izzat Freitekh made materially false statements to law enforcement agents that a company called “Kyber Capital” was responsible for submitting the PPP loan applications at issue.
The Department of Justice, working with law enforcement partners, seized and recovered approximately $1.3 million of the disbursed PPP funds in the matter.
The CARES Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is 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.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds 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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the U.S. Postal Inspection Service, IRS – Criminal Investigation, and Treasury Inspector General for Tax Administration. Trial Attorney Joshua N. DeBold of the Criminal Division’s Fraud Section and Deputy Criminal Chief Jenny Grus Sugar of the U.S. Attorney’s Office for the Western District of North Carolina are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
- Applications that included false and fraudulent IRS tax documentation submitted on behalf La Shish Kabob Restaurant located in Charlotte, and, separately, La Shish Catering.
North Carolina Restaurant Owner and Son Charged with COVID-Relief FraudRead the Press Release
CHARLOTTE, N.C. – Two individuals were charged in an indictment that was unsealed today for their alleged participation in a scheme to obtain, through multiple fraudulent loan applications, more than $1.7 million in COVID-19 relief guaranteed by the Small Business Administration through the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and U.S. Attorney R. Andrew Murray of the Western District of North Carolina made the announcement.
Izzat Freitekh, 55, of Waxhaw, North Carolina, and his son Tarik Freitekh, also known as Tareq Freitekh, 33, whose last known residence was in Glendale, California, were each charged in an indictment filed in the Western District of North Carolina with one count of conspiracy to commit wire fraud and one count of bank fraud. In addition, Izzat Freitekh was charged with one count of false statements.
The indictment alleges that the defendants submitted and caused to be submitted fraudulent PPP loan applications on behalf of three sets of companies:
- Applications that included false and fraudulent IRS tax documentation submitted on behalf La Shish Kabob Restaurant located in Charlotte, and, separately, La Shish Catering.
- An application which included fraudlent IRS tax documents submitted on behalf of Green Apple Catering LLC (Green Apple), representing that Green Apple paid $4.8 million to employees in 2019 despite evidence that the company did not exist until March 2020.
- An application that included false company payroll information and fraudulent IRS tax documents submitted on behalf of Aroma Packaging Systems.
The indictment further alleges that Izzat Freitekh made materially false statements to law enforcement agents that a company called “Kyber Capital” was responsible for submitting the PPP loan applications at issue.
The Department of Justice, working with law enforcement partners, seized and recovered approximately $1.3 million of the disbursed PPP funds in the matter.
The CARES Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is 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.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds 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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the U.S. Postal Inspection Service, IRS – Criminal Investigation, and Treasury Inspector General for Tax Administration. Trial Attorney Joshua N. DeBold of the Criminal Division’s Fraud Section and Deputy Criminal Chief Jenny Grus Sugar of the U.S. Attorney’s Office for the Western District of North Carolina are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Rutherford Co. Resident Is Sentenced to 13 Years for Distribution of Child PornographyRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Max O. Cogburn Jr. sentenced Nathan Michael McInnis, 45, of Rutherfordton, N.C., to 156 months in prison yesterday for distribution of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. McInnis 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 North Carolina joins U.S. Attorney Murray in making today’s announcement.
According to filed documents and statements made in court, on September 10, 2018, Homeland Security Investigations became aware that an individual, later identified as McInnis, was using a peer-to-peer network to share with other users files containing images and videos depicting the sexual abuse of children. Court records show that an HSI Special Agent, who accessed the network and was able to connect with McInnis’ device, downloaded multiple files containing child pornography, much of which had been produced in and distributed from foreign countries.
According to court records, on October 18, 2018, law enforcement executed a federal search warrant at McInnis’ residence in Rutherfordton. During the execution of the search warrant, law enforcement seized six devices. A forensic examination of the devices revealed that they contained multiple images and videos depicting children as young as infants being sexually abused. In total, law enforcement located approximately 1,457 images and 93 videos of child pornography on McInnis’ devices.
On September 23, 2020, McInnis pleaded guilty to distribution and attempted 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.
U.S. Attorney Murray commended HSI for handling the investigation, and thanked the Rutherford County Sheriff’s Office for their invaluable assistance.
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.
Charlotte Man Is Charged for COVID-19 Relief Loan FraudRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte returned a criminal indictment today charging Bryon Jones, 55, of Charlotte, with submitting a fraudulent loan application for COVID-19 economic assistance that resulted in the disbursement of $142,900 in federal emergency relief funds.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, joins U.S. Attorney Murray in making today’s announcement.
“At a time our nation is grappling with the effects of the coronavirus pandemic and businesses are struggling to cope with the impact of COVID, swindlers are seizing the opportunity to pilfer federal economic relief programs to line their own pockets,” said U.S. Attorney Murray. “My office is working hard to ferret out criminals who try to exploit the pandemic and steal funds intended for the economic recovery of businesses and communities across the Western District.”
“The United States Postal Inspection Service is committed to combatting fraud and the illegal use of our nation’s mail system,” said Inspector in Charge Coke. “During this tragic pandemic, our nation has shown great resolve and resiliency, evidenced by the majority of its great citizens. Unfortunately, we have also seen those that look to take advantage of these situations by fraudulently obtaining funds meant to help keep many of the small businesses in our local communities afloat. The United States Postal Inspection Service will use every resource available to bring justice to those that would take advantage of this pandemic for personal gain.”
According to allegations contained in the indictment, beginning in April 2020, Jones engaged in a scheme to fraudulently obtain disaster-related loan benefits in the form of an Economic Injury Disaster Loan (EIDL) sponsored by the United States Small Business Administration (SBA). This SBA program, expanded under the CARES Act, is designed to provide support for small businesses to remedy economic harm caused by the COVID-19 outbreak.
The indictment alleges that on or about April 16, 2020, Jones filed articles of incorporation in Delaware for Ramses Air Freight & Transport Inc. (“Ramses”), and listed his Charlotte home address as the business’s principal office. The indictment further alleges that Jones, who at the time was on federal supervised release for a previous felony conviction, submitted a loan application that contained false statements and misrepresentations regarding the company’s revenues, costs, and employees and his prior criminal record. The indictment also alleges that, as a result of the fraudulent application, Jones obtained $142,900 in proceeds in June and July 2020, which he used for personal and other unauthorized purposes.
A federal arrest warrant for Jones has been issued. He is charged with one count of wire fraud in relation to a disaster benefit, which carries a maximum prison term of 30 years and a $1,000,000 fine, one count of false statements to the SBA, which carries a maximum prison term of 30 years and a $1,000,000 fine, and one count of engaging in monetary transactions in criminally derived property, which carries a maximum prison term of 10 years.
The charges in the indictments are allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the investigating efforts of the U.S. Postal Inspection Service.
Assistant United States Attorney Graham Billings, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
The Department of Justice and U.S. Attorney’s Offices across the country 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.
Asheville Man Is Sentenced to Seven Years for the Armed Robbery of A Local RestaurantRead the Press Release
ASHEVILLE, N.C. – Curtis Andrew Wallace, Jr., 30, of Asheville, was sentenced to 84 months in prison today for the armed robbery of an area restaurant, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered Wallace to serve three years under court supervision after he is released from prison.
Chief David Zack of the Asheville Police Department (APD) joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, on December 30, 2019, APD officers responded to a call at the Domino’s Pizza restaurant located at 1438 Patton Avenue, in Asheville, in reference to an attempted armed robbery. APD officers who responded at the scene were able to see Wallace through the glass window of the store. Court records show that when Wallace saw the officers, he attempted to exit through the back door of the store, where he was met by other APD officers. Wallace retreated inside the business and attempted to escape again through the front door. Officers confronted Wallace at the entrance and took him into custody.
According to court documents, following Wallace’s arrest, APD officers entered the restaurant and located five store employees lying face down inside the store’s walk-in freezer. One of the employees told APD officers that Wallace ran in the store wielding a machete and ordered everyone to get on the floor in the back office or they would be harmed. Wallace demanded money from the safe and ordered the employees to lay face down inside the restaurant’s freezer. Over the course of the robbery, Wallace kicked several employees, one of them in the face, and threatened to “start chopping heads off” if they did not comply. Wallace proceeded to rob the store employees and to take money from the store’s cash register.
On September 25, 2020, Wallace pleaded guilty to interference with commerce by threat or violence, commonly referred to as Hobbs Act Robbery. Wallace has a prior federal conviction for the 2011 robbery of an Asheville-area bank.
Wallace is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney Murray thanked the Asheville 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.
Fake “Model Scout” Is Sentenced to 19 Years for Producing Child PornographyRead the Press Release
ASHEVILLE, N.C. – On Thursday, December 10, 2020, U.S. District Judge Martin Reidinger sentenced Keith Eric Saunders, 50, of Brevard, N.C. to 19 years in prison for production of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Saunders 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 North Carolina, and Chief John Phillip Harris, Jr. of the Brevard Police Department join U.S. Attorney Murray in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, sometime between December 2017 and January 2018, Saunders met the female victim in Brevard. At the time, the victim was 15 years old. Saunders told the victim that he was a model scout and a photographer for a New Jersey-based modeling agency called “K.” Saunders was not a model agent and “K” did not actually exist. Court records show that, on multiple occasions, Saunders contacted the victim and told her that he needed photographs of her, at the request of the modeling agency. The victim met Saunders and Saunders used his phone to take pictures of the minor. On February 28, 2018, Saunders once again made contact with the victim, and told her that “K” wanted “more pics” of her. Saunders then took the victim, who by then had turned 16, to an apartment in Brevard, and proceeded to take photos of the victim that depicted sexually explicit conduct. According to court records, Saunders proceeded to have a forcible sexual encounter with the victim.
On October 18, 2019, Saunders pleaded guilty to production of child pornography. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney Murray commended HSI and the Brevard Police Department for their investigation of this case.
The case was prosecuted by the U.S. Attorney’s Office in Asheville.
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.
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Charlotte Woman Pleads Guilty to Orchestrating A $1.9 Million Debt Collection SchemeRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Carissa Eugenia Brown, 33, of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer and pleaded guilty to orchestrating a $1.9 million debt collection scheme.
Matthew D. Line, 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 U.S. Attorney Murray in making today’s announcement.
According to filed plea documents and today’s plea hearing, from 2015 to July 2020, Brown executed a fraudulent debt collection scheme that defrauded hundreds of victims located in North Carolina and elsewhere in the United States. Court records show that, during the relevant time period, Brown had registered three companies in North Carolina, which she used in furtherance of the scheme: Accredited Recovery Solutions, LLC, (a/k/a Accredited RecoveryNetwork); Elite Credit Adjusters, LLC (a/k/a Elite Credit Network); and Martin Recovery Group, LLC (a/k/a Martin Recovery, P.C. and the Law Office of Martin and Associates).
As Brown admitted in court today, she operated her fraudulent debt collection scheme by contacting individuals who had been sued by various creditors for their outstanding debt and falsely represented that she was authorized to collect the debt on behalf of those creditors. Brown further admitted that she generally offered victims to “settle” the outstanding debt for a reduced amount, but only if the victims accepted the offer and paid the reduced amount in full, or began making immediately to one of Brown’s companies. As court records show, Brown often mailed victims official-looking documents, including a purported settlement agreement. Victims then made a lump-sum payment, or several payments, to Brown and her companies, believing that doing so would resolve their debt and outstanding court case, only to later learn that Brown was not authorized to collect the debt and they still owed the full debt to the actual creditor.
To further induce victims to comply with the debt repayment demands, Brown sent correspondence to victims on letterhead that implied the communication was coming from a law firm, and left voicemails for victims falsely representing that she was calling from a law firm. In addition, Brown also employed threatening and harassing pressure tactics to fraudulently induce victims to pay her, including threatening to garnish victims’ wages, to seize victims’ bank accounts, or to file judgments in court if payment on the debt was not received.
As a result of the false and fraudulent representations and threatening and harassing tactics used by Brown, court documents show that hundreds of individuals throughout the United States were fraudulently induced to pay Brown and her companies more than $1.9 million. This resulted in victims being placed in the untenable position of either having to pay their debts twice, or face the financial consequences for failing to pay the true creditor.
Brown has pleaded guilty to wire fraud and money laundering and was released on bond. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The money laundering charge carries a maximum penalty of 10 years in prison, a $250,000 fine, or a fine of not more than twice the amount of criminally derived property. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney Murray thanked the IRS-CI and USPIS for handling the investigation.
Assistant United States Attorney Maria Vento, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Repeat Offender Is Sentenced to More Than 10 Years for Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell sentenced today a repeat offender to 121 months in prison for possession of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Robert Norris Forehand, 39, of Iron Station, N.C. was also ordered to serve a lifetime of supervised release, register as a sex offender after he is released from prison, and to pay $6,000 in restitution to victims and special assessments to the United States totaling $22,000.
“Child pornography is repugnant, devastates our moral standards, and injures some of the most vulnerable members of our society,” said U.S. Attorney Murray. “We have to protect children from offenders like Forehand, who continue to violate the law to satisfy their appetite for appalling images depicting the sexual abuse of children. Thanks to the efforts of the U.S. Probation Office, this repeat offender has been removed from society for a very long time, and can no longer cause harm to children.”
According to court documents and information introduced at the sentencing hearing, Forehand was convicted in 2009 in the Western District of North Carolina of possession of child pornography. He was sentenced to more than nine years in prison and was ordered to serve 10 years under court supervision. As part of his post-conviction release conditions, Forehand was prohibited from possessing any type of electronic device that could access the internet, and was ordered to undergo risk assessment testing to monitor compliance with the terms of his supervised release.
According to court records, on July 10, 2019, during a court-ordered risk assessment examination, Forehand’s U.S. Probation Officer determined that Forehand possessed a computer that he built himself, which contained three hard drives that were unmonitored by the U.S. Probation Office (USPO). During a subsequent search of Forehand’s residence, USPO recovered the computer and the three hard drives. A forensic examination of the seized devices by USPO and the FBI revealed that they contained child pornography. In addition, court records show that one of the hard drives had been “wiped” by Forehand, however, law enforcement were able to locate the child pornography in Forehand’s deleted files. According to court records, law enforcement determined that Forehand possessed more than 400 images of child pornography, some of which depicted the sexual abuse of prepubescent children and sadistic and masochistic conduct.
In handing down the sentence, Judge Bell emphasized the seriousness of the defendant’s offense, and noted the vicious and enduring impact the defendant’s crimes have on the scores of innocent children victimized through the repeated collection and distribution of images and videos memorializing their violent sexual abuse.
In August 2020, Forehand pleaded guilty to possession of child pornography. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement U.S. Attorney Murray commended the U.S. Probation Office for their investigation of this case and thanked the FBI for their invaluable assistance.
Assistant United States Attorney Courtney Randall, of the U.S. Attorney’s Office in Charlotte, prosecuted the 2009 case. Assistant United States Attorneys Mark T. Odulio and Emily Wasserman, of the U.S. Attorney’s Office in Charlotte, prosecuted the 2020 case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Jury Convicts Drug Trafficker for Providing Half-Million Dollars to Purchase 20 Kilograms of CocaineRead the Press Release
CHARLOTTE, N.C. – A Charlotte federal jury has convicted Anthony Tommy Foster, 45, of Mokena, Illinois, of conspiracy to possess with intent to distribute cocaine and aiding and abetting possession with intent to distribute cocaine, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. presided over the two-day trial, which ended today.
U.S. Attorney Murray is joined in making today’s announcement by 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.
According to filed court documents and evidence presented at trial, Foster was involved in a drug trafficking conspiracy with his two co-defendants, Reynaldo Padilla and Alejandro Padilla. Trial evidence established that on June 29, 2020, Reynaldo Padilla and Alejandro Padilla arranged the purchase of 20 kilograms of cocaine for $500,000. Trial evidence further established that Reynaldo Padilla and Alejandro Padilla met with Foster on the same day in Belmont, N.C. At that meeting, Foster handed Reynaldo Padilla a duffel bag that contained $500,000 in cash. According to trial evidence, the conspirators intended to make future purchases of 100 to 200 kilograms of cocaine, per transaction.
Both Reynaldo Padilla and Alejandro Padilla have pleaded guilty to conspiracy to possess with intent to distribute cocaine and aiding and abetting possession with intent to distribute cocaine, and are currently awaiting sentencing.
Foster is in federal custody. Foster is facing a sentence of 15 years to life in prison per charge, due to his prior federal drug trafficking conviction. A sentencing date for Foster has not been set.
In making today’s announcement, U.S. Attorney Murray thanked ICE-HSI, the Belmont Police Department, CMPD, the Gaston County Police Department, the City of Gastonia Police Department, the Mt. Holly Police Department, and the Waxhaw Police Department for the investigation and coordination in this case.
Assistant U.S. Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Indian Trail Man Pleads Guilty to Wire Fraud for Investment SchemeRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Bryan John Cohen, 45, of Indian Trail, N.C. pleaded guilty to wire fraud, for operating an investment scheme that defrauded investors of more than $385,000. U.S. Magistrate Judge David C. Keesler presided over today’s plea hearing.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), in North Carolina, joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s plea hearing, from 2015 to 2020, Cohen defrauded at least 10 victims of more than $385,000, by inducing them to invest money in his purported investment businesses, OTC Bully, Ascension Trading, and Recharge Investments, and in other business ventures. Court records show that Cohen falsely represented to victim investors, most of whom were Cohen’s friends and acquaintances, that he was a financially savvy investor with a successful track record in the financial industry, and that he would invest their funds using a computer algorithm called the “Dewey System.”
As Cohen admitted today in court, to convince victims their investments were legitimate, Cohen provided them with bogus Investment Agreements that purported, among other things, that Cohen would not charge any investment fees, and that the money would be invested in a manner “expected of a reputable, experienced and competent professional investment manager.” To further lull victims-investors into thinking their investments were safe, Cohen supplied them with fake profit and loss sheets on a monthly basis, which falsely indicated the victims’ investments were growing.
Contrary to claims Cohen made to his victims, court documents show that Cohen did not invest their money as promised. Rather, Cohen used the money to pay for personal expenses and to make Ponzi-style payments to older investors using new investors’ money.
Cohen pleaded guilty to wire fraud, which carries a maximum prison term of 20 years, and a $250,000 fine. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney Murray thanked the FBI in Charlotte, and the North Carolina Department of Public Safety, Special Operations and Intelligence Unit, 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.
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Armed Bank Robber Is Sentenced to 14 Years in Prison on Gun ChargesRead the Press Release
CHARLOTTE, N.C. – Alvin James Pierce, 59, of Charlotte, was sentenced today to 168 months in prison on gun charges in connection with two armed bank robberies he committed earlier this year in the Charlotte area, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also sentenced Pierce to five years of supervised release and ordered him to pay $4,500 as restitution.
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 U.S. Attorney Murray in making today’s announcement.
According to court documents and today’s sentencing hearing, on February 18, 2020, Pierce entered the Fifth Third Bank located at 1720 Oakdale Road in Charlotte. After he approached the counter, Pierce pulled out a small handgun and demanded $100 bills. The teller complied and Pierce fled the scene with $8,400. CMPD officers located Pierce’s getaway vehicle and he was apprehended shortly thereafter. Court records show that, over the course of the investigation, law enforcement determined that Pierce was also responsible for the January 7, 2020, armed bank robbery of a Fifth Third bank at 5605 77 Center Drive in Charlotte. During that incident, Pierce approached the counter, pointed a gun at the teller and a customer and demanded money, threatening to shoot the customer if the teller did not comply with his demands. The teller gave Pierce $4,500 in $100 bills.
On August 28, 2020, Pierce pleaded guilty to two counts of possession and brandishing of firearm in furtherance of a crime of violence. Pierce is in federal custody and upon designation of a federal facility he will be transferred into custody of the Federal Bureau of Prisons.
The investigation was handled by the FBI and CMPD. The prosecution for the government was handled by Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte.
U.S. Attorney's Office Participates in Law Enforcement Action Against Approximately 2,300 Money Mules in Global Crackdown on Money LaunderingRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office for the Western District of North Carolina joined the U.S. Department of Justice, the FBI, the U.S. Postal Inspection Service, and six other federal law enforcement agencies in announcing the completion of the third annual Money Mule Initiative, a coordinated operation to disrupt the networks through which transnational fraudsters move the proceeds of their crimes. Money mules are individuals who assist fraudsters by receiving money from victims of fraud and forwarding it to the fraud organizers, many of whom are located abroad. Some money mules know they are assisting fraudsters, but others are unaware that their actions enable fraudsters’ efforts to swindle money from consumers, businesses, and government unemployment funds. Europol announced a simultaneous effort, the European Money Mule Action (EMMA) today.
Over the last two months, U.S. law enforcement agencies took action against over 2,300 money mules, far surpassing last year’s effort, which acted against over 600 money mules. This year, actions occurred in every state in the country. The initiative announced today targeted money mules involved in a wide range of schemes including lottery fraud, romance scams, government imposter fraud, technical support fraud, business email compromise or CEO fraud, and unemployment insurance fraud. Many of these schemes target elderly or vulnerable members of society.
“Money mules fuel fraud against some of America’s most vulnerable populations. Without the help of these money mules, many foreign fraud enterprises find it difficult to profit off of U.S. victims,” said Attorney General William P. Barr. “As this initiative demonstrates, the Department of Justice is committed to disrupting money mule networks, taking actions against more money mules this year than ever before, in an effort to cut off the flow of funds from American consumers and businesses to transnational criminal organizations.”
“Criminals enterprises that perpetrate financial fraud are increasingly relying on money mules to launder ill-gotten gains and conduct financial transactions using illegal proceeds. Be it under the guise of a new romantic relationship or the promise of a new job, scammers employ many tactics that can dupe unsuspecting victims into carrying out these illegal money operations. Today’s initiative serves as a lesson and a warning: don’t let scammers fool you into doing their dirty work,” said Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Eight federal law enforcement agencies participated in this year’s effort. Led by the Department of Justice’s Consumer Protection Branch, the FBI, and the U.S. Postal Inspection Service, the participating agencies include the Department of Labor Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Social Security Administration Office of Inspector General, U.S. Secret Service, and U.S. Treasury Inspector General for Tax Administration.
Some highlights from this year’s efforts are:
- Actions were taken to halt the conduct of approximately 2,300 money mules, spanning 92 federal districts.
- Law enforcement served approximately 2,000 money mules with letters warning the money mules that they were facilitating fraud and could face civil or criminal consequences for continuing their actions. Agents conducted over 450 interviews.
- On approximately 30 instances, agents seized assets or facilitated the return of victim funds. Among the asset seizures was a 2019 Lamborghini, which was seized as part of an investigation into a business email compromise scheme.
- The U.S. Postal Inspection Service filed 14 administrative actions requiring money mules to cease facilitating fraud.
- U.S. Attorney’s Offices and the Consumer Protection Branch filed 17 civil injunctive actions seeking court orders requiring money mules to stop facilitating fraudulent activity. Districts filing those actions include the Western District of Washington, District of South Carolina, Middle District of Florida, Southern District of Florida, Central District of California, Northern District of New York, and District of Colorado.
Additionally, more than 35 individuals were criminally charged or arrested for their roles in receiving victim payments and forwarding the fraud proceeds to accomplices or laundering fraud proceeds. Cases include:
- The U.S. Attorney’s Office for the Western District of North Carolina has indicted four individuals operating as money mules in two separate business email compromise schemes.
- The U.S. Attorney’s Office for the Central District of California indicted three individuals for collecting parcels containing victim proceeds in a government imposter scheme.
- The U.S. Attorney’s Office for the District of Maryland indicted three individuals for opening bank accounts using falsified documents for the purposes of facilitating a business email compromise scam.
- The U.S. Attorney’s Office for the Western District of Texas indicted an individual for facilitating a lottery fraud scheme. The indictment also seeks to forfeit over $1.2 million.
- The U.S. Attorney’s Office for the Northern District of Ohio indicted two money mules who facilitated a grandparents scam.
- The U.S. Attorney’s Office for the Eastern District of Virginia charged a money mule who laundered gift cards purchased by fraud victims.
Additional criminal charges were brought by U.S. Attorney’s Offices in Southern District of Florida, Western District of Pennsylvania, Southern District of Texas, the Southern District of Mississippi, and the District of New Jersey.
The above charges are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
“The success of the Money Mule Initiative is the culmination of the hard work by and coordination between the FBI and our federal, state, local, and international partners,” said FBI Director Christopher Wray. “This campaign has resulted in hundreds of criminal arrests worldwide and justice for countless victims. Today’s announcement should send a clear message to those engaged in this type of criminal activity: they are not outside the reach of law enforcement, and the FBI and its partners will relentlessly pursue them in order to protect the American people.”
“The Postal Inspection Service has zero tolerance for fraudsters who use the U.S. Mail to transport funds from scammed victims,” said Chief Postal Inspector Gary Barksdale. “Postal
Inspectors use cutting-edge technology to build strong cases and campaigns like those announced today, which make significant progress towards disrupting money mule networks. Postal Inspectors and our law enforcement partners will be relentless in the pursuit of criminal organizations that perpetrate these schemes.”
The agencies participating in the Money Mule Initiative and community partners are undertaking an outreach campaign to increase awareness of how fraudsters use and recruit money mules. U.S. Attorney’s Offices across the country, through their Elder Justice Coordinators, will be reaching out to their communities to educate the public about money mules. AmeriCorp Seniors (formerly Senior Corps) will be working to increase awareness of how money mules facilitate fraud and how consumers can avoid unwittingly assisting fraud schemes.
Additionally, the American Bankers Association will be engaging with its members on money mules and the role of financial institutions in addressing the problem. The Department of Justice will also be distributing resources for state and local law enforcement on identifying, disrupting, investigating, and prosecuting money mules.
To find public education materials, as well as information about how fraudsters use and recruit money mules, please visit www.justice.gov/civil/consumer-protection-branch/money- mule-initiative.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities. In March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has also conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
The department’s extensive efforts to combat elder fraud seek to halt the billions of dollars seniors lose each year to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Federal Indictment Charges Buncombe County Man for Receiving Veteran Benefits Based on Fraudulent Service-Connected DisabilitiesRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that John Paul Cook, 57, of Alexander, N.C. is facing multiple federal charges for defrauding the U.S. Department of Veterans Affairs (the VA) by receiving veteran benefits based on fraudulent 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 U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the federal indictment, Cook enlisted in the United States Army (the Army) in November 1985. The indictment alleges 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.” The indictment alleges that, in 2005, based on Cook’s claims of severe visual impairment, Cook was declared legally blind and began receiving disability-based compensation at a 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 allegations in the indictment, Cook’s monthly VA disability payments in 1987 were $1,411 per month. With the 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.
The indictment alleges that, 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. The indictment further alleges that, during the relevant time period, Cook purchased and registered over 30 different motor vehicles which Cook routinely drove, including on long-distance trips, to perform errands, and to drive to medical appointments. As alleged in the indictment, 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 indictment alleges that, in addition to the fraudulently obtained disability benefits for visual impairment, Cook also defrauded the VA’s Beneficiary Travel Program, after filing multiple false claims for mileage reimbursement in connection with his medical appointments. The VA terminated Cook’s blindness-related disability payments in October 2017.
The federal criminal indictment charges Cook with one count of stealing from the VA, which carries a maximum penalty of 10 years in prison and a $250,000 fine; three counts of making false statements in connection with obtaining VA disability payments, which carry a maximum penalty of five years in prison and a $250,000 fine, per count; and three counts of a making false claims for travel benefits from the VA, which carry a maximum penalty of five years in prison and a $250,000 fine, per count.
The indictment also contains a Notice of Forfeiture seeking a money judgement in the amount of $978,138, which is the amount constituting the proceeds of Cook’s alleged fraudulent conduct.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray 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.
McDowell Co. Man Sentenced to More Than 14 Years on Drug ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Jonathan Brooks Floyd, 43, of Marion, N.C. was sentenced to 178 months in prison for possession with intent to distribute methamphetamine. U.S. District Judge Martin Reidinger also sentenced Floyd to five years of supervised release upon completion of his prison term.
According to today’s sentencing hearing and documents filed with the Court, in November 2019, law enforcement became aware that Floyd was trafficking methamphetamine. During a subsequent search at Floyd’s residence, law enforcement discovered more than 625 grams of methamphetamine and five firearms. Floyd pleaded guilty to the drug charge on June 1, 2020. Floyd’s previous convictions in North Carolina, including a Habitual Felon conviction, contributed to the Court’s prison sentence.
Floyd is currently in custody and will be transferred to the custody of the federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility.
In making today’s announcement, U.S. Attorney Murray thanks the Bureau of Alcohol, Tobacco, Firearms and Explosives, the North Carolina State Bureau of Investigation, the McDowell County Sheriff’s Office, and the Rutherford County Sheriff’s Office for their investigation of this case.
Assistant United States Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
Career Offender Is Sentenced to over 11 Years in Prison on Drug ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Ryan Eugene Farley, 31, of Catawba, N.C. was sentenced to 135 months in prison and four years of supervised release on federal drug charges. As a result of Farley’s multiple prior drug trafficking convictions, the Court today sentenced him as a career offender.
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 Sheriff Donald G. Brown II, of the Catawba County Sheriff’s Office, join U.S. U.S. Attorney Murray in making today’s announcement.
According to filed court documents and court records, between April 2019 and March 2020, Farley distributed narcotics in Catawba County and elsewhere. Court records show that on April 6, 2019, a deputy with the Catawba County Sheriff’s Office approached Farley for a traffic violation. Over the course of the encounter, law enforcement seized crack cocaine and $1,052 in drug proceeds from Farley. According to court records, on August 12, 2019, a Catawba County Sheriff’s Office deputy initiated a traffic stop of Farley’s vehicle in Claremont, North Carolina, in connection with an outstanding arrest warrant. Law enforcement recovered from Farley’s seized vehicle four clear plastic bags that contained what was later determined to be crack cocaine. On March 3, 2020, law enforcement arrested Farley on a federal arrest warrant for the two aforementioned incidents. In addition to the previously seized narcotics, law enforcement also located at Farley’s residence additional crack cocaine, cash, a digital scale, and drug paraphernalia. On July 24, 2020, Farley pleaded guilty to three counts of possession with intent to distribute crack cocaine.
In making today’s announcement, U.S. Attorney Murray thanked the DEA and the Catawba County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charlotte Man Is Sentenced to Prison for String of Armed RobberiesRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Frank D. Whitney sentenced Jonathan Dujan Gardin, 36, of Charlotte, to 220 months in prison and three years of supervised release, for committing a string of armed robberies of businesses in the Charlotte area, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Joining U.S. Attorney Murray in making today’s is 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).
According to filed documents and statements made in court, on February 16, 2019, Gardin and his co-conspirator, Mandale Roger Huntley, robbed the Family Dollar store located at 542 Valleydale Road, in Charlotte. According to court records, Huntley drove Gardin to the Family Dollar store, where Gardin entered the store, approached the cashier, pointed a firearm in cashier’s face and at other customers inside the store, and demanded money. Gardin obtained $195 from the cashier, and fled the scene on foot. Law enforcement apprehended Gardin and Huntley shortly thereafter.
Court records show that, over the course of the investigation, law enforcement determined Gardin was responsible for multiple armed robberies of local area businesses, including the January 3, 2018, robbery of the Sam’s Mart, located at 4200 Glenwood Drive, in Charlotte. During that incident, court records show that Gardin entered the Sam’s Mart, approached employees behind the cashier’s desk, pointed his firearm at multiple employees, and demanded the store’s money. During the robbery, a store customer released his dog toward Gardin. Gardin fired his gun at the dog, injuring the canine, before fleeing scene with approximately $250 of the store’s cash.
On January 26, 2020, Gardin pleaded guilty to two counts of robbery of a business affecting interstate commerce or “Hobbs Act” robbery, carrying and brandishing a firearm, and discharging a firearm during, in relation to, and in furtherance of a crime of violence. Huntley has pleaded guilty to Hobbs Act robbery and possession of a firearm in furtherance of a crime of violence and is currently awaiting sentencing.
The investigation was handled by the FBI and CMPD, with assistance from the Lancaster, South Carolina, Sheriff’s Office. Assistant U.S. Attorney Sanjeev Bhasker of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
Federal Jury Convicts Bryson City Woman of Distribution of A Controlled Substance Resulting in DeathRead the Press Release
ASHEVILLE, N.C. – A federal jury in Asheville has convicted Shannon White, 43, of Bryson City, N.C. of distribution of a controlled substance resulting in death, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
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 U.S. Attorney Murray in making today’s announcement.
According to filed court documents, witness testimony and evidence presented at trial, Shannon White, 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 that 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 evidence presented at trial, White continued to sell narcotics even after she became aware of the J.F.’s death, as well as falsely accused several other individuals of committing the crime.
White is currently in custody. At sentencing, the charge carries a mandatory minimum sentence of 20 years in federal prison.
In making today’s announcement U.S. Attorney Murray 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, is prosecuting the case.
Three Sentenced to Prison for Methamphetamine TraffickingRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced three individuals for trafficking methamphetamine in Catawba County, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Chha Chham, 43, of Mooresville, North Carolina, 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, North Carolina, was sentenced to three years in prison and three years of supervised release.
According to filed court documents and statements made in court, from 2018 to September 2019, Chham, Sayavong, and Secrest, were involved in a conspiracy to traffic methamphetamine in Catawba County and elsewhere. Court records show that Chham was the leader of the drug conspiracy, and obtained the methamphetamine from a supply source in California. According to court records, co-conspirator David Alexander Moralez, Jr. worked at a shipping company in California as a mail clerk, and was responsible for mailing packages containing methamphetamine from California to traffickers on the East Coast, including Chham. Sayavong and Secrest were Chham’s local drug distributors. Sayavong was also responsible for arranging drug shipments with Moralez, and Secrest frequently picked up the packages shipped by Moralez and collected drug proceeds for Chham. According to court records, Chham, Sayavong, and Secrest sent drug proceeds back to California via Walmart-to-Walmart transfers and bank deposits, to pay for, among other things, Moralez’s fees and expenses.
Chham, Sayavong and Secrest previously pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine. Sayavong also pleaded guilty to distribution and possession with intent to distribute methamphetamine. On October 21, 2020, a federal jury convicted Moralez of conspiracy to possess with intent to distribute methamphetamine, two counts of distribution of methamphetamine, and money laundering conspiracy. Moralez is currently awaiting sentencing.
Today’s sentences are the result of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation codenamed “Dixie Crystal.” According to court documents, since 2015, more than 200 individuals have been prosecuted and law enforcement has seized far in excess of 120 kilograms of crystal methamphetamine, $1,000,000 in U.S. currency and other assets, and dozens of firearms. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Murray 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 Boone Police Department; the Burke County Sheriff’s Office; the Caldwell County Sheriff’s Office; the Catawba County Sheriff’s Office; the Charlotte Mecklenburg Police Department; the Cleveland County Sheriff’s Office; the Davie County Sheriff’s Office; the Gaston County Police Department; the Gastonia Police Department; the Huntersville Police Department; the Lincoln County Sheriff’s Office; the Hickory Police Department; the Johnson County, Tennessee Sheriff’s Office; the Mooresville Police Department; the Newton Police Department; the Longview Police Department; the Morganton Department of Public Safety; the Rutherford County, Tennessee Sheriff’s Office; and the Troutman Police Department.
Assistant U.S. Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charlotte Man Is Sentenced to Prison for Producing Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell sentenced Brian Elliott Kursonis, 59, of Charlotte, to 360 months in prison and a lifetime of supervised release for production of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Bell also ordered Kursonis to register as a sex offender after he is released from prison.
Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department (CMPD), joins U.S. Attorney Murray in making today’s announcement.
According to documents filed in the case and statements made in court, beginning as early as 2008, Kursonis repeatedly sexually abused two minor victims, and produced images and videos depicting the abuse. Kursonis’ conduct came to the attention of law enforcement when a witness discovered the child pornography on Kursonis’ computer. Over the course of the investigation, law enforcement also located numerous images of child pornography on Kursonis’ seized computer and other electronic devices. On July 20, 2020, Kursonis pleaded guilty to production of child pornography.
In making today’s announcement U.S. Attorney Murray thanked CMPD for their investigation which led to Kursonis’ lengthy sentence.
Assistant U.S. Attorney Alfredo De La Rosa, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
North Dakota Man Is Sentenced to Prison for Investment SchemeRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Mark Nicholas Pyatt, 44, of North Dakota, was sentenced to 37 months in prison for an investment scheme that defrauded victims out of more than $200,000. In addition to the prison term, U.S. District Judge Max O. Cogburn, Jr., also ordered Pyatt to serve three years under court supervision after his release from imprisonment, and explained that a forthcoming order will obligate Pyatt to pay approximately $274,506 to his victims as restitution. Pyatt previously pleaded guilty to wire fraud.
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; and Sheriff Greg Christopher of the Haywood County Sheriff’s Office join U.S. Attorney Murray in making today’s announcement.
According to court documents and court proceedings, beginning as early as October 2017 and continuing through at least February 2019, Pyatt, often using the alias Daniel G. Randolph, solicited friends and acquaintances to invest their money in a “communal account,” or “fund,” held by his company, Winston Reed Investments, LLC (WRI). Court documents show that Pyatt represented to his victim-investors that he had made significant amounts of money through his own investing and day trading activities, and that he wanted to invest the victims’ money using a similar strategy so that they could experience the same wealth that he enjoyed.
According to court records, in order to induce the victims to part with their money, Pyatt made a number of false and fraudulent representations. For example, Pyatt told the investors that he would make trades with the investors’ money on a daily basis, that he would be trading futures and “forex,” and that he would specialize in energy-related stocks. Pyatt also falsely promised large returns on investments, assuring victims that the “low average expected return on investments” would be 15% per month, with a goal of a return of 100% in three to four months. Pyatt represented to his victims that he would receive a fee for WRI’s services of just 10% of all gains, and that he would not charge his investors any fees if he did not make a profit.
According to court records, in furtherance of the fraud, Pyatt made false misrepresentations to victim-investors about the fund’s performance. For example, for months, Pyatt regularly provided his investors with false updates that purported to describe his trading activity and the considerable positive returns he was earning on their investments. Then, in February 2019, after reporting substantial monthly gains to his investors for more than a year, Pyatt notified his investors by email that a “complete and catastrophic” loss had occurred, and that their money was gone. Pyatt falsely claimed that he was investigating the loss with the assistance of a forensics firm, and told his investors that the loss was due to a technical oversight or failure by the brokerage firm holding the investment account. Court records show that all of these representations were false, and, in reality, the money was gone because Pyatt spent it.
Contrary to the promises he made to victim-investors, Pyatt simply stole the vast majority of the investors’ money. Specifically, Pyatt misappropriated over $100,000 to pay for personal expenses, including to buy jewelry, groceries, cigars, and a Chevrolet Corvette. Pyatt also withdrew tens of thousands of dollars in cash, and made several Ponzi-style payments to his investors, falsely implying that the returned funds were trading profits.
During a substantial portion of the scheme, Pyatt resided in Haywood County and targeted local victims. In total, Pyatt stole well over $200,000 from his victim investors, many of whom were at, or near, retirement age.
In making today’s announcement, U.S. Attorney Murray commended the Haywood County Sheriff’s Office, the SBI, and HSI for their investigation of the criminal case, and thanked the Commodity Futures Trading Commission (CFTC) and the U.S. Securities & Exchange Commission (SEC) for their invaluable assistance.
Assistant U.S. Attorney Daniel Bradley, of the U.S. Attorney’s Office in Asheville, is in charge of the prosecution.
In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: https://www.justice.gov/usao-wdnc/elder-justice-initiative.
Bloods Gang Members Sentenced to Life in Prison for Racketeering Conspiracy Involving Murder and Other CrimesRead the Press Release
Five members of the United Blood Nation (UBN or Bloods) street gang were sentenced in Charlotte, North Carolina, after standing trial on federal Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and other charges. These defendants’ sentences are the culmination of a prosecution that charged 83 UBN gang members in the Western District of North Carolina with RICO conspiracy and other crimes.
U.S. District Judge Frank D. Whitney sentenced three defendants to terms of life imprisonment. A jury previously convicted those defendants, Dricko Dashon Huskey, aka Drizzy, 28, of Shelby, North Carolina, Renaire Roshique Lewis Jr., aka Banz, 26, of Shelby, North Carolina, and Jonathan Wray, aka Jon Jon/Yungin, 29, of Lawndale, North Carolina, of racketeering conspiracy, finding that each defendant personally committed murder. The jury also convicted Lewis of murder in aid of racketeering, attempted murder in aid of racketeering, attempted Hobbs Act robbery, and two counts of discharging a firearm during and in relation to a crime of violence, one of which resulted in death.
Judge Whitney also sentenced Alandus Montrell Smith, aka Kadafia, 30, of Shelby, North Carolina, and Bradley Beauchamp, aka Bizzie, 32, of Fort Lauderdale, Florida. Smith was sentenced to 25 years of imprisonment followed by three years of supervised release based on his jury convictions for RICO conspiracy, possession with intent to distribute methamphetamine and marijuana, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. Beauchamp was sentenced to more than 11 years in prison followed by two years of supervised release based on his convictions during a bench trial for RICO conspiracy and wire fraud conspiracy.
“Members of the United Bloods Nation gang left a trail of destruction across North Carolina, committing multiple murders, robberies, and other crimes,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The significant sentences imposed today demonstrate the Department’s commitment to thwarting gang violence and reinforce the severe consequences awaiting those who jeopardize the safety of our communities.”
“The Bloods are a violent gang that poses a serious threat to the safety and stability of our communities,” said U.S. Attorney Andrew Murray for the Western District of North Carolina. “This case is an outstanding example of what federal, state, and local law enforcement can accomplish when we strike back at gangs and dismantle gang networks that spread violence in our cities and fear in our neighborhoods.”
“Murders, assaults, robberies, these ruthless gang members committed crime after crime with no regard for anyone not part of the UBN,” said Special Agent in Charge Robert R. Wells of the FBI’s Charlotte Field Office. “These hefty federal prison sentences are the final step to secure justice for every innocent person impacted by their violent actions.”
According to evidence presented at the October 2019 trial, Lewis and four other UBN members drove from Cleveland County, North Carolina, to Chapel Hill, North Carolina, in order to rob an 18‑year‑old victim of marijuana and money. Lewis and another UBN member then shot and killed the victim and attempted to murder the victim’s friend, who survived a gunshot wound to his arm. The evidence presented at trial also established that Wray shot and killed a member of the Crips, a rival gang, at a party with other Bloods in Shelby, North Carolina. Evidence at trial further proved that Huskey murdered an unarmed man during an argument by shooting the victim multiple times and continuing to shoot while the victim was on the ground.
According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993. UBN members are often identified by their use of the color red and by common tattoos or burn marks. The UBN has a militaristic structure, with positions of Godfather, High, Low, Five-Star to One‑Star Generals, and soldiers. UBN members use distinct hand signs and written codes, which are used to identify other members and rival gang members, as well as to try to thwart law enforcement efforts against them.
Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, and wire fraud, among other forms of illegal racketeering activity.
In May 2017, 83 UBN gang members were indicted in the Western District of North Carolina for RICO conspiracy and other crimes. In all, 82 defendants have now been sentenced as a result of this investigation, with one defendant awaiting resentencing and one fugitive believed to be living overseas remaining. In May 2018, a jury convicted three top leaders of the UBN of racketeering conspiracy. In July 2019, Beauchamp was convicted of racketeering conspiracy and wire fraud conspiracy at a bench trial. And in October 2019, a jury convicted Huskey, Lewis, Wray, and Smith of racketeering conspiracy and other charges as described above. All other defendants pleaded guilty to their crimes before trial.
The investigation was conducted by the FBI’s Charlotte Field Office; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Department of Public Safety Adult Corrections and Juvenile Justice; North Carolina Department of Motor Vehicles; Scotland Neck Police Department; the North Carolina State Bureau of Investigation; the Halifax County Sheriff’s Office; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. Trial Attorney Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Bloods Gang Members Sentenced to Life in Prison for Racketeering Conspiracy Involving Murder and Other CrimesRead the Press Release
CHARLOTTE, N.C. – Five members of the United Blood Nation (UBN or Bloods) street gang were sentenced in Charlotte, North Carolina, after standing trial on federal Racketeer Influenced and Corrupt Organizations (RICO) conspiracy and other charges. These defendants’ sentences are the culmination of a prosecution that charged 83 UBN gang members in the Western District of North Carolina with RICO conspiracy and other crimes.
U.S. District Judge Frank D. Whitney sentenced three defendants to terms of life imprisonment. A jury previously convicted those defendants, Dricko Dashon Huskey, aka Drizzy, 28, of Shelby, North Carolina, Renaire Roshique Lewis Jr., aka Banz, 26, of Shelby, North Carolina, and Jonathan Wray, aka Jon Jon/Yungin, 29, of Lawndale, North Carolina, of racketeering conspiracy, finding that each defendant personally committed murder. The jury also convicted Lewis of murder in aid of racketeering, attempted murder in aid of racketeering, attempted Hobbs Act robbery, and two counts of discharging a firearm during and in relation to a crime of violence, one of which resulted in death.
Judge Whitney also sentenced Alandus Montrell Smith, aka Kadafia, 30, of Shelby, North Carolina, and Bradley Beauchamp, aka Bizzie, 32, of Fort Lauderdale, Florida. Smith was sentenced to 25 years of imprisonment followed by three years of supervised release based on his jury convictions for RICO conspiracy, possession with intent to distribute methamphetamine and marijuana, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. Beauchamp was sentenced to more than 11 years in prison followed by two years of supervised release based on his convictions during a bench trial for RICO conspiracy and wire fraud conspiracy.
“Members of the United Bloods Nation gang left a trail of destruction across North Carolina, committing multiple murders, robberies, and other crimes,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division. “The significant sentences imposed today demonstrate the Department’s commitment to thwarting gang violence and reinforce the severe consequences awaiting those who jeopardize the safety of our communities.”
“The Bloods are a violent gang that poses a serious threat to the safety and stability of our communities,” said U.S. Attorney Andrew Murray for the Western District of North Carolina. “This case is an outstanding example of what federal, state, and local law enforcement can accomplish when we strike back at gangs and dismantle gang networks that spread violence in our cities and fear in our neighborhoods.”
“Murders, assaults, robberies, these ruthless gang members committed crime after crime with no regard for anyone not part of the UBN,” said Special Agent in Charge Robert R. Wells of the FBI’s Charlotte Field Office. “These hefty federal prison sentences are the final step to secure justice for every innocent person impacted by their violent actions.”
According to evidence presented at the October 2019 trial, Lewis and four other UBN members drove from Cleveland County, North Carolina, to Chapel Hill, North Carolina, in order to rob an 18‑year‑old victim of marijuana and money. Lewis and another UBN member then shot and killed the victim and attempted to murder the victim’s friend, who survived a gunshot wound to his arm. The evidence presented at trial also established that Wray shot and killed a member of the Crips, a rival gang, at a party with other Bloods in Shelby, North Carolina. Evidence at trial further proved that Huskey murdered an unarmed man during an argument by shooting the victim multiple times and continuing to shoot while the victim was on the ground.
According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993. UBN members are often identified by their use of the color red and by common tattoos or burn marks. The UBN has a militaristic structure, with positions of Godfather, High, Low, Five-Star to One‑Star Generals, and soldiers. UBN members use distinct hand signs and written codes, which are used to identify other members and rival gang members, as well as to try to thwart law enforcement efforts against them.
Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, and wire fraud, among other forms of illegal racketeering activity.
In May 2017, 83 UBN gang members were indicted in the Western District of North Carolina for RICO conspiracy and other crimes. In all, 82 defendants have now been sentenced as a result of this investigation, with one defendant awaiting resentencing and one fugitive believed to be living overseas remaining. In May 2018, a jury convicted three top leaders of the UBN of racketeering conspiracy. In July 2019, Beauchamp was convicted of racketeering conspiracy and wire fraud conspiracy at a bench trial. And in October 2019, a jury convicted Huskey, Lewis, Wray, and Smith of racketeering conspiracy and other charges as described above. All other defendants pleaded guilty to their crimes before trial.
The investigation was conducted by the FBI’s Charlotte Field Office; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Department of Public Safety Adult Corrections and Juvenile Justice; North Carolina Department of Motor Vehicles; Scotland Neck Police Department; the North Carolina State Bureau of Investigation; the Halifax County Sheriff’s Office; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. Trial Attorney Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Armed Methamphetamine Trafficker Is Sentenced to 15 Years in PrisonRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Christopher Price, 43, of Turtletown, Tennessee, was sentenced to 180 months in prison on drug trafficking and firearms offenses. U.S. District Judge Max O. Cogburn Jr. also ordered Price to serve five years under court supervision upon completion of his prison term.
According to filed court documents and today’s sentencing hearing, in September 2018, law enforcement in Cherokee County became aware that Price was trafficking methamphetamine. On September 11, 2018, law enforcement conducted a traffic stop of Price’s vehicle, during which they seized methamphetamine and a loaded firearm. Court records show that, on September 14, 2018, law enforcement conducted a second traffic stop of Price, who had been released on bond on State charges, during which they seized additional methamphetamine. Then, on January 16, 2019, law enforcement were dispatched to a residence in Murphy to check on a suspicious parked vehicle. When law enforcement located the vehicle, they observed Price, who had been released again on bond on State charges, asleep at the wheel with a shotgun on his lap. Law enforcement arrested Price and seized the shotgun, which was loaded, a second loaded firearm, and methamphetamine that they located in the vehicle. Court records show that, over the course of the investigation, law enforcement seized from Price more than 17 ounces of highly pure methamphetamine and three loaded firearms.
On July 24, 2020, Price pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
In making today’s announcement U.S. Attorney Murray thanked the DEA, the ATF, the Cherokee County Sheriff’s Office, the Jackson County Sheriff’s Office, the Swain County Sheriff’s Office and the Cherokee Indian Police Department for their coordination and assistance throughout the investigation.
Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Armed Convicted Felon Is Sentenced 24 Years in Prison for Two Carjackings and Related Gun OffensesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Dejuan Evans, 30, of Charlotte, was sentenced to 288 months in prison for two carjackings and related firearms offenses. In addition to the prison term imposed, U.S. District Judge Robert J. Conrad Jr. also ordered Evans to serve five years under court supervision.
Robert R. Wells, Special Agent in Charge of the FBI in North Carolina, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Murray in making today’s announcement.
“Anyone willing to rob his elderly grandmother is a menace to society,” said U.S. Attorney Murray. “I’m glad the prison sentence imposed will remove Evans from our streets for a long time.”
According to court documents, evidence presented at Evans’ trial and today’s sentencing hearing, on June 18, 2018, Evans carjacked at gunpoint a victim, identified in court documents as J.K., at a 7-Eleven located at 1501 N. Tryon Street, in Charlotte. Court records show that Evans approached the victim, who was walking back to his parked vehicle, pointed a firearm in the victim’s face and fled the scene in the victim’s pick-up truck. Two days after the carjacking incident, on June 20, 2018, Evans and another individual were involved in an assault on Evans’ grandmother, during which her purse was stolen. Immediately after the assault, court records show that Evans was captured on bank surveillance video, driving J.K.’s pick-up truck and using his grandmother’s ATM card.
On July 2, 2018, Evans carjacked a second victim, identified as M.L., at an apartment complex in Charlotte. According to trial testimony, M.L. was delivering pizza at the apartment complex, when Evans approached M.L. in the parking lot, pointed a firearm at M.L., and ordered M.L. to empty his pockets. The victim complied and Evans fled the scene in the victim’s vehicle. Court records show that CMPD officers arrested Evans on July 10, 2018, as he was attempting to flee law enforcement. Court records also show that law enforcement recovered a firearm from Evans’ apartment.
At the time Evans committed the carjackings, he was on pretrial release on state charges for robbery, and had cut off his electronic monitor. Evans also has prior offenses and he is prohibited from possessing a firearm.
A federal jury convicted Evans on December 3, 2019, of two counts of carjacking, two counts of possession and brandishing of a firearm in furtherance of a crime of violence, and possession of a firearm by a felon.
In making today’s announcement, U.S. Attorney Murray thanked the CMPD and the FBI for their investigation of the case.
Assistant U.S. Attorneys David Kelly and Erik Lindahl, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Armed Carjacker Is Sentenced to 12 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad Jr. yesterday sentenced Unique Bajon Bennett, 26, of Charlotte, to 144 months for carjacking and gun charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Vincent C. Pallozzi, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Murray in making today’s announcement.
According to court documents filed in Bennett’s case, on November 7, 2018, Bennett and a co-conspirator approached a victim, identified in court documents as M.R., in the parking lot of an apartment complex on Lodge South Circle in Charlotte. Bennett and his co-conspirator pointed a firearm at M.R., ordered M.R. to put his hands in the air, and stole the victim’s wallet, driver’s license, debit card, and a car key. Bennett and his co-conspirator then fled the scene in M.R.’s vehicle.
In a second incident, on November 16, 2018, Bennett and his co-defendant, Zachary Morris, approached another victim, identified in court documents as I.F., in an apartment complex parking lot on Countryside Drive in Charlotte. Bennett and Morris pointed a firearm at the victim and demanded the keys to her Toyota Prius. Bennett drove off in the vehicle with Morris in the passenger seat. Bennett and Morris were apprehended on the same day by Charlotte-Mecklenburg Police Department officers.
On July 25, 2019, Bennett pleaded guilty to two counts of carjacking, and to brandishing a firearm during, in relation to, and in furtherance of a crime of violence. Morris was previously sentenced to nine years for his role in the carjacking on November 16.
Bennett is currently in federal custody. In making today’s announcement, U.S. Attorney Murray commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for their investigation into Bennett. U.S. Attorney Murray also thanked CMPD for their invaluable assistance in both cases.
Assistant U.S. Attorneys William Bozin and Kimlani Ford, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
North Carolina Man Is Sentenced to Prison for Conspiring to Steal Millions from MedicaidRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad Jr. sentenced Jerry Lewis Taylor, 55, of Wingate, N.C., to five years in prison followed by two years of supervised release, for conspiring to steal millions from Medicaid and committing tax evasion, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Jerry Taylor was also ordered to pay more than $6.1 to North Carolina Medicaid and over $346,000 to the U.S. Internal Revenue Service as restitution.
On Tuesday, October 20, 2020, Jerry Taylor’s co-conspirator, Ameera Ali, 41, of Columbus, Ohio, was sentenced to 84 months in prison and one year of supervised release, for her role in the scheme. In July 2020, the leader of the scheme, Tony Garrett Taylor, 40, of Brooklyn, N.Y., was sentenced to 96 months in prison and two years of supervised release.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, Robert W. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), and Attorney General Josh Stein, who oversees the North Carolina Medicaid Investigations Division (MID), join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, from June 2015 to December 2017, Jerry Taylor and his brother, Tony Taylor, orchestrated a scheme to defraud Medicaid of more than $9.4 million by submitting false and fraudulent reimbursement claims for patient services that were either non-existent or mischaracterized to Medicaid. The brothers submitted the fraudulent claims through several companies they owned and/or operated, including Taylor Behavioral Health Center, LLC and Options Driven LLC, both located in Monroe, N.C.; Design for Change LLC located in Raleigh and elsewhere; and SHG Consultants, located in Gastonia, N.C. and elsewhere (collectively, the “the entities”). These entities specialized in providing outpatient behavioral health services to at-risk youth throughout North Carolina.
Court records show that, during the relevant time period, Jerry Taylor was responsible for overseeing certain aspects of the business operations of the entities, including managing the preparation and submission of fraudulent claims through the entities’ third-party billing company owned by Ameera Ali. According to court records, in addition to providing billing services for the conspiracy, Ameera Ali furnished Tony Taylor with prospective patient lists containing identifying information for eligible Medicaid beneficiaries. The beneficiary information obtained from Ali and others were used, in turn, to file fraudulent reimbursement claims for services that were never provided. To the extent that services were actually provided, the conspirators submitted to Medicaid fraudulent reimbursement claims that misrepresented the services rendered so as to obtain a higher reimbursement rate, a practice known as “upcoding.”
According to court documents, Tony Taylor also recruited Devon Rambert-Hairston, a licensed nurse practitioner and the director of one of the entities operated by the brothers, to review and sign-off on fictitious patient progress notes. Court records show that Rambert-Hairston never provided any behavioral health or medical services to the Medicaid beneficiaries or rarely interacted with them at all. To the extent that the beneficiaries received any treatment, those services were provided by an individual identified in court documents as J.B., who was not credentialed to provide those types of services.
Jerry Taylor and Tony Taylor also conspired with Christine Yvette Knight, who operated Connect and Move Staffing LLC in Florida. Knight’s role in the conspiracy was to create fraudulent treatment notes for the beneficiaries, and to prepare fake billing spreadsheets which were used by the brothers to further perpetuate the fraud.
During the course of the fraudulent scheme, Jerry and Tony Taylor caused hundreds of false and fraudulent claims to be submitted to Medicaid for false and fraudulent services. As a result, more than $9.4 million in fraudulent claims were submitted to Medicaid, resulting in approximately $6.1 million in fraudulent payments from Medicaid.
In addition to health care fraud, Jerry Taylor also committed tax evasion, by failing to file timely and/or accurate U.S. Individual Income Tax Returns for tax years 2016 and 2017, and failing to report more than $1.6 million in fraudulent receipts from Medicaid that were diverted to nominee entities and individuals. Jerry Taylor used the fraudulent proceeds for personal expenditure using business accounts, including to pay for medical expenses, personal travel, and to make large cash withdrawals, among other things.
In announcing Jerry Taylor’s sentence, Judge Conrad described the fraud as sophisticated and said the defendants preyed upon government institutions and taxpayers.
Devon Rambert-Hairston was previously sentenced to a year and a day in prison and a year of supervised release, and was ordered to pay $813,726 in restitution. Christine Yvette Knight has pleaded guilty to making a false statement relating to health care matters and is currently awaiting sentencing.
In making today’s announcement U.S. Attorney Murray thanked the USPIS, the FBI the IRS, and North Carolina’s MID for their investigation of this case.
Assistant U.S. Attorneys Michael Savage and William Bozin of the U.S. Attorney’s Charlotte Office are prosecuting the case.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].
Former U.S. Army Reservist Sentenced to 40 years in Prison for Sex Trafficking and a Related OffenseRead the Press Release
U.S. District Judge Robert J. Conrad, Jr. of the Western District of North Carolina sentenced Xaver M. Boston, 31, of Charlotte, North Carolina, today to serve 40 years in prison and 30 years of supervised release. Judge Conrad also ordered Boston to pay $354,000 in restitution and $25,000 pursuant 18 U.S.C. 3014 and the Justice for Victims of Trafficking Act of 2015. A federal jury in Charlotte previously convicted Boston on Oct. 11, 2018, of six counts of sex trafficking and one count of using an interstate facility to promote a prostitution enterprise.
Evidence presented during the three-day trial, including the testimony of three of the four victims identified in the indictment by their initials, revealed that Boston, who served in the U.S. Army as a reserve military policeman, operated an extensive sex trafficking enterprise in the Charlotte area between 2012 and September 2017, except for a brief period when he was deployed overseas. Boston recruited young women and one teenager by promising to provide them with a place to live and heroin or other opioids. Boston then advertised the victims on Backpage.com for prostitution and collected the proceeds for his own profit.
Evidence presented at trial showed that Boston used violence to control and coerce the victims. Testimony revealed that on multiple occasions, Boston choked one victim and punched and slapped other victims. He also used a pistol to strike one victim in the face, breaking her nose.
“The seriousness of today’s sentence reflects the extent to which the defendant in this case used physical violence and opioids to control and exploit the young vulnerable victims of his crime,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Civil Rights Division is committed to fighting human trafficking and committed to working with our federal and state partners to provide justice to the victims of this vile crime.”
“Boston used fear, coercion and violence against young women to build a depraved sex trafficking criminal enterprise, robbing his victims of the most basic standards of human dignity. I could not be more pleased with his lengthy sentence,” said U.S. Attorney Andrew Murray for the Western District of North Carolina. “My office will continue to work with our law enforcement counterparts to hold accountable those who engage in this illegal, dehumanizing trade, and partner with community organizations to ensure victims receive the support they need on their path to recovery.”
“It takes an especially heinous person to physically, psychologically, and sexually abuse someone,” said Robert R. Wells, Special Agent in Charge of the FBI Charlotte Field Office. “Xaver Boston's victims truly believed he was there to help. There is no way of knowing the long term damage he caused to their lives, but we do know for certain he will pay with a lengthy federal prison sentence.”
The case was investigated by the FBI Charlotte, North Carolina, Field Division with assistance from the Charlotte-Mecklenburg Police Department. The case is being prosecuted by Assistant U.S. Attorney Kimlani M. Ford of the Western District of North Carolina and Special Litigation Counsel Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Former U.S. Army Reservist Sentenced to 40 Years in Prison for Sex Trafficking and A Related OffenseRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. of the Western District of North Carolina sentenced Xaver M. Boston, 31, of Charlotte, North Carolina, today to serve 40 years in prison and 30 years of supervised release. Judge Conrad also ordered Boston to pay $354,000 in restitution and $25,000 pursuant 18 U.S.C. 3014 and the Justice for Victims of Trafficking Act of 2015. A federal jury in Charlotte previously convicted Boston on Oct. 11, 2018, of six counts of sex trafficking and one count of using an interstate facility to promote a prostitution enterprise.
Evidence presented during the three-day trial, including the testimony of three of the four victims identified in the indictment by their initials, revealed that Boston, who served in the U.S. Army as a reserve military policeman, operated an extensive sex trafficking enterprise in the Charlotte area between 2012 and September 2017, except for a brief period when he was deployed overseas. Boston recruited young women and one teenager by promising to provide them with a place to live and heroin or other opioids. Boston then advertised the victims on Backpage.com for prostitution and collected the proceeds for his own profit.
Evidence presented at trial showed that Boston used violence to control and coerce the victims. Testimony revealed that on multiple occasions, Boston choked one victim and punched and slapped other victims. He also used a pistol to strike one victim in the face, breaking her nose.
“The seriousness of today’s sentence reflects the extent to which the defendant in this case used physical violence and opioids to control and exploit the young vulnerable victims of his crime,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Civil Rights Division is committed to fighting human trafficking and committed to working with our federal and state partners to provide justice to the victims of this vile crime.”
“Boston used fear, coercion and violence against young women to build a depraved sex trafficking criminal enterprise, robbing his victims of the most basic standards of human dignity. I could not be more pleased with his lengthy sentence,” said U.S. Attorney Andrew Murray for the Western District of North Carolina. “My office will continue to work with our law enforcement counterparts to hold accountable those who engage in this illegal, dehumanizing trade, and partner with community organizations to ensure victims receive the support they need on their path to recovery.”
“It takes an especially heinous person to physically, psychologically, and sexually abuse someone,” said Robert R. Wells, Special Agent in Charge of the FBI Charlotte Field Office. “Xaver Boston's victims truly believed he was there to help. There is no way of knowing the long term damage he caused to their lives, but we do know for certain he will pay with a lengthy federal prison sentence.”
The case was investigated by the FBI Charlotte, North Carolina, Field Division with assistance from the Charlotte-Mecklenburg Police Department. The case was prosecuted by Assistant U.S. Attorney Kimlani M. Ford of the Western District of North Carolina and Special Litigation Counsel Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Convicted Felon Who Adheres to the “Sovereign Citizen” Movement Is Sentenced to More Than 15 Years in Prison on Drug and Gun ChargesRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Jerrell Tito Bowman, 35, of Asheville, to 185 months in prison and eight years of supervised release on drug and gun charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Asheville Resident Office, Vincent C. Pallozzi, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Chief David Zack of the Asheville Police Department, and Sheriff Quentin Miller of the Buncombe County Sheriff’s Office join U.S. Attorney Murray in making today’s announcement.
According to plea documents and statements made in court, in March 2018, officers with Buncombe County’s Anti-Crime Task Force (BCAT) became aware that Bowman was trafficking narcotics in the Asheville area. On March 21, 2018, while executing a search warrant, law enforcement recovered narcotics from Bowman’s apartment and vehicle, including Fentanyl, cocaine, crack cocaine, heroin, marijuana, and other drug paraphernalia, approximately $15,000 in cash, and a loaded firearm. Bowman was previously convicted of state drug and gun offenses, including Assault with a Deadly Weapon Inflicting Serious Injury, and he is prohibited from possessing a firearm or ammunition.
Bowman has been in federal custody since September 2019. While in federal custody, Bowman, through an individual acting as his representative, has filed numerous court documents demonstrating that he adheres to the sovereign citizen movement whose followers believe that they are only answerable to their interpretation of common law and not subject to government statutes or proceedings.
On June 29, 2020, Bowman pleaded guilty to possession with intent to distribute cocaine, crack cocaine, heroin, Fentanyl, and marijuana, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a felon.
In making today’s announcement, U.S. Attorney Murray commended the Asheville Police Department, the Buncombe County Sheriff’s Office, the DEA, and the ATF in Asheville for their investigation of this case.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville prosecuted the case.
Charlotte Man Is Charged with CyberstalkingRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has returned a criminal indictment charging Amir Salvatore Khayyat, 27, of Charlotte, with cyberstalking and making interstate threats, for sending his victim hundreds of harassing and threatening emails and voicemails, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the FBI in North Carolina, joins U.S. Attorney Murray in making today’s announcement.
According to allegations in the indictment, in 2017, Khayyat met the victim, identified in court documents as “Jane Doe.” Jane Doe is a licensed clinical psychologist and a credentialed mental health service provider, who met Khayyat in her professional capacity. As alleged in the indictment, from April 2019 to October 2020, Khayyat engaged in an extensive cyberstalking and threats campaign targeting Jane Doe. For approximately 18 months, Khayyat allegedly sent Jane Doe hundreds of harassing emails, including unsolicited sexual imagery, from multiple email addresses, and left numerous harassing voicemails on Jane Doe’s office phone line. Many of the harassing emails and voicemails contained express or implicit threats to harm Jane Doe and law enforcement officers. The indictment further alleges that Khayyat continued to harass and threaten Jane Doe even after she obtained a state court order forbidding Khayyat from communicating with her.
Khayyat is currently in federal custody. The cyberstalking charge and the communicating interstate threats charge each carry a maximum penalty of five years in prison and a $250,000 fine.
The charges against Khayyat are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the FBI and the Charlotte-Mecklenburg Police Department for their investigation of this case.
Assistant United States Attorney Matthew Warren, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Charlotte Man Pleads Guilty to Wire Fraud for Defrauding InvestorsRead the Press Release
CHARLOTTE, N.C. – Stanley Choate Eaves Sr., 82, of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to wire fraud, for defrauding eight victims of more than $350,000, announced the U.S. Attorney’s Office for the Western District of North Carolina.
According to filed documents and as Eaves admitted in court today, from 2015 to 2020, Eaves executed a scheme to defraud at least eight victim-investors in North and South Carolina, some of whom were elderly, of over $350,000, by inducing them to invest money in his purported vehicle resale business. Court documents show that Eaves presented himself to his victims as the owner of a business that dealt in the resale of vehicles, primarily cars and trucks, and occasionally golf carts and farm equipment. Eaves also falsely represented that he had a partner in his business.
According to court documents, to induce victim-investors to loan him their money, Eaves represented to potential victim-investors that he had a business and/or business opportunity to buy vehicles, sometimes through auctions or estate sales, and then to resell those vehicles for a profit. Victim-investors would agree to invest or loan money to Eaves (investment-loans), often in intervals of $5,000 or $10,000, tied to what the victim-investors thought were particular vehicle buying opportunities. In exchange, Eaves would agree to repay the investment-loans at a certain point in the future, and to pay returns or dividends to the victim-investors, sometimes monthly and other times a certain amount tied to the resale of each vehicle. Court records show that Eaves would then take the victim-investors’ money and use it for various personal expenses and/or to make Ponzi-style payments to earlier victim-investors who had been promised dividends or returns for existing investment-loans.
According to filed court documents, to add an air of legitimacy to these fraudulent deals, Eaves often presented his victim-investors with a “Promissory Note”, sometimes falsely representing that the note had been prepared by his attorney. While Eaves was still making payments to the victim-investors pursuant to the initial agreements and investments, he would often fraudulently induce the victim-investors to enter into additional deals and/or agreements, in close succession, obtaining tens of thousands of dollars of additional investments. As Eaves admitted in court today, he would eventually stop making the purported return or dividend payments to the victim-investors. When the victim-investors demanded their dividends or other payments and/or the return of their investment-loans, Eaves made up various excuses as to why the payments could not be made and/or the investment-loans returned, including that the IRS or FBI had put a hold on, or frozen, his account, that the money was overseas and Eaves could not access the accounts, or that Eaves needed his business partner’s signature on the checks and that his business partner was out of town.
Eaves was released on bond following his guilty plea. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. A sentencing date for Eaves has not been set.
The FBI led the investigation. Assistant United States Attorney Maria Vento, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
In March 2019, the U.S. Attorney’s for the Western District of North Carolina announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit:
https://www.justice.gov/usao-wdnc/elder-justice-initiative
California Man Convicted at Trial for Methamphetamine TraffickingRead the Press Release
STATESVILLE, N.C. – A federal jury sitting in Statesville has convicted David Alexander Moralez, Jr., 37, of Fresno, California, of conspiracy to possess with intent to distribute methamphetamine, two counts of distribution of methamphetamine, and money laundering conspiracy following a three-day trial, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
According to filed court documents and evidence presented at trial, Moralez worked at a shipping company in California as a mail clerk. As trial evidence established, from 2018 to September 2019, Moralez was involved in a conspiracy to traffic narcotics from California to the East Coast. The evidence at trial demonstrated that Moralez conspired with other drug traffickers to send numerous parcels – each filled with multiple pounds of methamphetamine – via the U.S. Postal Service and FedEx from Fresno, California, to various locations throughout North Carolina, South Carolina, and Tennessee. According to evidence presented at trial, on December 18 and 19, 2018, law enforcement in Newton, N.C. and Hickory, N.C., seized two pounds of methamphetamine during controlled buys. In addition to trafficking narcotics, co-conspirators on the East Coast sent drug proceeds back to California via Walmart-to-Walmart transfers and bank deposits, to pay for, among other things, Moralez’s fees and expenses.
Moralez was ordered detained pending sentencing, at which time he faces 10 years to life in prison for the drug trafficking conspiracy and each of the distribution charges, and up to 20 years in prison for the money laundering conspiracy charge. A sentencing date has not been set.
Moralez was convicted as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation codenamed “Dixie Crystal.” According to court documents, since 2015, more than 200 individuals have been prosecuted and law enforcement has seized far in excess of 20 kilograms of crystal methamphetamine, $1,000,000 in U.S. currency and other assets, and dozens of firearms. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Murray 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 Boone Police Department; the Burke County Sheriff’s Office; the Caldwell County Sheriff’s Office; the Catawba County Sheriff’s Office; the Charlotte Mecklenburg Police Department; the Davie County Sheriff’s Office; the Gaston County Police Department; the Gastonia Police Department; the Huntersville Police Department; the Lincoln County Sheriff’s Office; the Hickory Police Department; the Johnson County, Tennessee Sheriff’s Office; the Mooresville Police Department; the Newton Police Department; the Longview Police Department; the Morganton Department of Public Safety; the Rutherford County, Tennessee Sheriff’s Office; and the Troutman Police Department.
Assistant U.S. Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Insurance Agent Is Sentenced to More Than Five Years in Prison for $400,000 Loan SchemeRead the Press Release
CHARLOTTE, N.C. – Glenda Taylor-Sanders, 52, of Matthews, N.C. was sentenced to 66 months in prison in federal court today by U.S. District Judge Robert J. Conrad Jr., for orchestrating a $400,000 fraudulent loan scheme involving insurance premiums, announced Andrew Murray, 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 Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney Murray in making today’s announcement.
According to plea documents and today’s court hearing, Taylor-Sanders was a licensed Insurance Producer and Insurance Broker, and the owner of G. Taylor, Inc., an insurance agency in Charlotte that procured insurance policies for customers, including transportation companies. Court records show that in February 2018, Taylor-Sanders voluntarily surrendered all of her licenses issued to her by the North Carolina Department of Insurance (NCDOI) and acknowledged that she could no longer perform any activities for which a license from NCDOI is required.
According to court records, from February 2017 through May 2019, Taylor-Sanders defrauded an Illinois-based financial services company that provides companies with loans to pay for insurance premiums. Taylor-Sanders executed the scheme by submitting fraudulent applications and related forged documents to the financial services company, purporting to be on behalf of her transportation company clients, for the purpose of obtaining loans to cover their insurance premiums. According to court records, once the financial services company received the forged documents and approved the loans, the financial services company wired the loan proceeds to a bank account controlled by Taylor-Sanders. Court documents show that, over the course of the scheme, the financial services company wired to Taylor-Sanders more than $400,000 in fraudulently obtained loan proceeds, which the defendant used to pay for personal expenses and to further the fraud scheme.
According to court records, after some of the transportation companies began to receive communications from the financial services company about missed payment deadlines, Taylor-Sanders went to great lengths to conceal the fraud, and continued to make false representations, including instructing the financial services company to only contact her, and assuring the impacted transportation companies that the issue had been resolved.
According to court records, Taylor-Sanders used the fraudulently obtained funds to make mortgage payments on her personal residence, loan payments for a Maserati and a Mercedes Benz, to purchase Carolina Panthers tickets, and to pay for groceries and meals at restaurants.
In making today’s announcement, U.S. Attorney Murray commended the FBI and USPIS for handling the investigation and thanked NCDOI for their invaluable assistance.
Assistant U.S. Attorneys Caryn Finley and William Bozin, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
U.S. Attorney's Office Announces Election Day ProgramRead the Press Release
CHARLOTTE, N.C. – United States Attorney Andrew Murray announced today that Assistant United States Attorneys (AUSAs) Michael Savage in Charlotte, and Richard Edwards in Asheville, will lead the efforts of their Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election.
AUSAs Savage and Edwards have been appointed to serve as the District Election Officers (DEOs) for the Western of North Carolina, and in that capacity they are responsible for overseeing the District’s handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.
U.S. Attorney Murray said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will always act appropriately to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Murray stated that AUSAs/DEOs Savage and Edwards will be on duty in this District while the polls are open. They can be reached by the public at the following telephone numbers:
In Charlotte: 704-344-6222, and in Asheville: 828-271-4661.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 704-672-6100.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
U.S. Attorney Murray said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available to my Office, the FBI, or the Civil Rights Division.”
Federal Judge Sentences Five Methamphetamine TraffickersRead the Press Release
CHARLOTTE, N.C. – On Thursday, October 15, 2020, U.S. District Judge Kenneth D. Bell handed down prison sentences ranging from 63 to 200 months in prison, to five individuals for their involvement in a methamphetamine trafficking ring, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Judge Bell sentenced the defendants as follows:
- Jeremy Matthew Magnus, 45, of Granite Falls, N.C. was sentenced to 200 months in prison, followed by five years of supervised release. Magnus pleaded guilty to drug trafficking conspiracy and possession with intent to distribute methamphetamine.
- John Brooks Miller, of Hickory, N.C., was sentenced to 120 months in prison and five years of supervised release. He pleaded guilty to conspiracy to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine.
- Angela Dale, 33, of Morganton, N.C., was sentenced to 97 months in prison and three years of supervised release. Dale pleaded guilty to conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
- Bradley Scott Carroll, 37, of Hildebran, N.C., was sentenced to 78 months in prison and four years of supervised release. He pleaded guilty to conspiracy to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine.
- David William Pope, 66, of Connelly Springs, N.C., was sentenced to 63 months in prison and five years of supervised release. Pope pleaded guilty to conspiracy to distribute 500 grams of methamphetamine and distribution and possession with intent to distribute 50 grams or more of methamphetamine.
According to court documents and the sentencing hearings, from early 2019 to February 2020, Magnus and his co-conspirators trafficked crystal methamphetamine in Caldwell, Catawba and Burke Counties. Magnus was the drug conspiracy’s leader and a supplier of crystal methamphetamine to local drug networks. Court records show that Magnus and Dale frequently transported methamphetamine from Georgia to the Hickory area. Court records show that the defendants trafficked more than 30 kilograms of methamphetamine. Over the course of this part of the investigation, law enforcement seized approximately 1.3 kilograms of methamphetamine.
This case is the result of the Organized Crime Drug Enforcement Task Force (OCDETF) Operation “Dixie Crystal.” Since 2015, Operation Dixie Crystal has resulted in the prosecution of more than 200 individuals, and law enforcement have seized over 20 kilograms of crystal methamphetamine, more than $500,000 in U.S. currency and other assets, and dozens of firearms.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement, U.S. Attorney Murray recognized the following federal, state and local agencies which partnered in Operation Dixie Crystal, and thanked them for their continued cooperation and support: the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the North Carolina State Bureau of Investigation (NC SBI); the Ashe County Sheriff’s Office; 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 Hickory Police Department; the Jefferson Police Department, the Lincoln County Sheriff’s Office; and the Mooresville Police Department.
The prosecutions are being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Bristol, Virginia Man Pleads Guilty to Illegal Possession of a Machinegun, a Silencer, and Other FirearmsRead the Press Release
ABINGDON, Virginia – A Bristol, Virginia man pleaded guilty yesterday in U.S. District Court in Abingdon to three federal gun charges related to offenses occurring in both the Western District of Virginia and the Western District of North Carolina. Acting United States Attorney Daniel P. Bubar of the Western District of Virginia, United States Attorney Andrew R. Murray of the Western District of North Carolina, and Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Washington Field Division made the announcement today.
Michel Andrew Houser, 48, pleaded guilty to two counts of an indictment filed in the Western District of Virginia charging him with possession of an unregistered machinegun and possession of an unregistered silencer. In addition, Houser pleaded guilty to a one-count Information filed in the Western District of North Carolina charging him with illegal possession of firearms by a previously convicted felon.
“When felons possess firearms, it produces violence in our neighborhoods. As today’s plea agreement demonstrates, we will continue to prioritize these cases,” Acting United States Attorney Bubar said today. “I am grateful to our partners at the ATF and United States Attorney Murray in the Western District of North Carolina for continuing to keep out communities safe.”
“Guns do not belong in the hands of felons,” said Andrew Murray, U.S. Attorney for the Western District of North Carolina. “Removing illegal firearms from our streets and prosecuting repeat gun offenders is a critical step toward tackling gun violence and building stronger and safer communities.”
“Aside from the fact that this defendant is a convicted felon and unable to lawfully possess a firearm, the nature of the weapons recovered – to include a machinegun – is of serious concern not only to law enforcement, but to all residents of Washington County,” said ATF Washington Special Agent in Charge Ashan M. Benedict. “His plea today on all charges is a testament to the excellent investigative work by both ATF and our law enforcement partners in Western Virginia and North Carolina. Their efforts resulted in overwhelming evidence against this defendant and led to his admission of guilt.”
According to court documents, on December 4, 2019 Houser was arrested at his home in Bristol, Virginia on state charges. Following his arrest, Houser called a friend and asked him to retrieve certain firearms and ammunition from Houser’s home. At Houser’s request, the friend retrieved several firearms, and silencer, and ammunition.
During an investigation, ATF examined a receiver from one of the firearms and determined that it met the definition of a machine gun. Houser had not registered either the machinegun or the silencer, as required by federal statute.
On or about January 23, 2020, Houser was convicted of two felonies in Washington County, Virginia. After his July 2020 federal indictment relating to the machinegun and silencer, law enforcement located Houser in Avery County, North Carolina. At the time of his arrest, Houser was found to be in possession of three firearms and ammunition, after having been convicted of the two prior felonies.
At sentencing, Houser faces up to 10 years in prison and/or a fine of up to $250,000. A sentencing hearing has been scheduled for January 23, 2020.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Avery County, North Carolina Sheriff’s Office. Assistant United States Attorney Whit D. Pierce, of the Western District of Virginia, and David Thorneloe, of the Western District of North Carolina, are prosecuting the case for the United States.
Armed Career Criminal Sentenced to More Than 15 Years for Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – Roger Mack Royal, 40, of North Wilkesboro, N.C., was sentenced to 188 months in prison today for drug and gun charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also ordered Royal to serve five years under court supervision after he is released from prison.
According to filed court documents and today’s sentencing hearing, in January 2019, Royal, his co-conspirator April Renee Hicks, and another defendant, Joshua Allen McCloud, trafficked methamphetamine in Wilkes and Caldwell counties and elsewhere in Western North Carolina. Law enforcement arrested Royal and Hicks on January 29, 2019, following a drug transaction that took place in a Walmart parking lot. Over the course of their arrest, law enforcement recovered a stolen firearm from Royal’s vehicle.
On May 19, 2020, Royal pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine, four counts of possession with intent to distribute and distribution of methamphetamine, and possession of a firearm by a felon. Court records indicate that Royal has over 40 state felony convictions in North and South Carolina. Due to his prior criminal convictions, Royal qualified for a sentencing enhancement as an armed career criminal.
Joshua McCloud was previously sentenced to 11 years in prison for drug and firearm offenses. Over the course of the investigation, law enforcement recovered from McCloud’s residence two firearms, a 60-round drum magazine, 39 rounds of assorted ammunition, narcotics and drug paraphernalia. April Hicks was sentenced to 57 months in prison after pleading guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine, and possession with intent to distribute and distribution of methamphetamine.
In making today’s announcement, U.S. Attorney Murray credited the Bureau of Alcohol, Tobacco, Firearms and Explosives, the North Carolina State Bureau of Investigation, the Wilkesboro Police Department, the North Wilkesboro Police Department, the Caldwell County Sheriff’s Office, the Ashe County Sheriff’s Office, the Alexander County Sheriff’s Office, the Boone Police Department, the Watauga County Sheriff’s Office, and the Yadkin County Sheriff’s office for the investigation of this case, and thanked each agency for their cooperation and coordination.
Assistant United States Attorney David Kelly, of the U.S. Attorney’s Office in Charlotte, prosecuted the cases.
* * *
On Tuesday, October 13, 2020, the Justice Department announced it has charged more than 14,200 defendants with firearms-related crimes during Fiscal Year 2020 (FY20), despite the challenges of COVID 19 and its impact on the criminal justice process. Of the more than 14,200 individuals charged in FY20, 267 defendants were charged in the Western District of North Carolina.
“Gun crimes are often committed by people prohibited from having guns in the first place,” said U.S. Attorney Murray. “Together with our law enforcement partners, we are committed to protecting our communities by keeping guns out of the wrong hands, taking violent criminals off our streets, and prosecuting those who violate federal gun laws.”
Under federal law, it is illegal to possess a firearm if you fall into one of nine prohibited categories including being a felon, illegal alien, or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to illegally purchase - firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, is also a federal offense. The Department is committed to prosecuting these firearms offenses as well as using all modern technologies available to law enforcement such as the National Integrated Ballistic Information Network, known as NIBIN, to promote gun crime intelligence. Keeping illegal firearms out of the hands of violent criminals will continue to be a priority of the Department of Justice and we will use all appropriate, available means to keep the law abiding people of this country safe from gun crime.
For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.
Second Charlotte Man Involved in Two Separate Identity Theft Schemes Pleads Guilty to Federal ChargesRead the Press Release
CHARLOTTE, N.C. – David Clarke, 30, of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer today, and pleaded guilty to federal charges for his role in two separate schemes involving identity theft, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Clarke’s co-conspirator, Jamel Johnson, previously pleaded guilty for his involvement in the schemes.
Clarke and Johnson were initially indicted on June 19, 2020, on bank and wire fraud conspiracy and aggravated identity theft charges, for orchestrating a scheme in which they used stolen personal information of identity theft victims to obtain fraudulent bank loans. On October 7, 2020, new federal wire fraud charges were filed against Clarke, for using stolen identities to file for, and receive, COVID-19 Unemployment Insurance (UI) benefits.
According filed court documents and statements made at Clarke’s plea hearing today, from August 2019 to June 2020, Clarke, Johnson and their co-conspirators engaged in a bank loan scheme involving the use of stolen information of identity theft victims. Court documents show that, after acquiring the victims’ stolen identities on the internet and elsewhere, the co-conspirators used them to attempt to obtain more than $1,000,000 in fraudulent bank loans and goods.
According to court records, over the course of the investigation into the bank loan scheme, law enforcement discovered that Clarke was also executing a separate scheme involving COVID-19 UI benefits. In this scheme, court records show that, from May through July 2020, Clarke defrauded the U.S. Department of Labor, the State of Wisconsin, and the State of Arizona, by submitting fraudulent claims for unemployment insurance benefits in the names of identity theft victims. During the relevant time-period, Clarke fraudulently obtained over $82,500 in fraudulent UI benefits using the compromised identities of more than 60 victims. According to court records, Clarke directed that payments of the fraudulent UI benefits be made to Green Dot cards, or to bank accounts under Clarke’s control.
Clarke is currently in federal custody. The charge of conspiracy to commit bank and wire fraud carries a maximum prison sentence of 30 years and a $1 million fine. The aggravated identity theft charge carries a minimum prison term of two years, consecutive to any other prison term imposed, and a $250,000 fine. The wire fraud charge carries a maximum prison sentence of 20 years and a $250,000 fine.
Clarke’s co-defendant, Johnson, has also pleaded guilty to bank and wire fraud conspiracy, aggravated identity theft, and wire fraud for his role in both schemes. A third co-defendant involved in the bank loan scheme, Justin Parks, has pleaded guilty to bank and wire fraud conspiracy and aggravated identity theft. A sentencing date for Clarke, Johnson and Parks has not been set.
The charges against Mikael Roberts, for his alleged involvement in the loan scheme, are still pending, and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray commended the U.S. Postal Inspection Service for their investigative efforts, and thanked the Atlanta Regional Office of the U.S. Department of Labor, Office of the Inspector General, and the Charlotte Mecklenburg Police Department for their invaluable assistance.
The prosecution for the government is handled by Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
DOJ Charges More Than 14,200 Defendants with Firearms-Related Crimes in FY20Read the Press Release
CHARLOTTE, N.C. – Today, the Department of Justice announced it has charged more than 14,200 defendants with firearms-related crimes during Fiscal Year 2020 (FY20), despite the challenges of COVID 19 and its impact on the criminal justice process. These cases have been a Department priority since November 2019 when Attorney General William P. Barr announced his commitment to investigating, prosecuting, and combatting gun crimes as a critical part of the Department’s anti-violent crime strategy. These firearms-related charges are the result of the critical law enforcement partnership between United States Attorneys’ Offices and the Bureau of Alcohol, Tobacco, Firearms and Explosives, led by Acting Director Regina Lombardo, who has made firearms-related investigations a priority.
“The number one priority of government is to keep its citizens safe,” said Attorney General Barr. “By preventing firearms from falling into the hands of individuals who are prohibited from having them, we can stop violent crime before it happens. Violating federal firearms laws is a serious crime and offenders face serious consequences. The Department of Justice is committed to investigating and prosecuting individuals who illegally buy, sell, use, or possess firearms. Reducing gun violence requires a coordinated effort, and we could not have charged more than 14,000 individuals with firearms-related crimes without the hard work of the dedicated law enforcement professionals at the ATF, our U.S. Attorneys’ Offices across the country, and especially all of our state and local law enforcement partners.”
“Protecting the public from violent crime involving firearms is at the core of ATF’s mission,” commented ATF Acting Director Regina Lombardo. “Every day the men and women of ATF pursue and investigate those who use firearms to commit violent crimes in our communities, many of whom are prohibited from possessing firearms from previous convictions. ATF, in collaboration with the U.S. Attorneys’ Offices across the nation, is committed to bringing these offenders to justice for their egregious and violent criminal acts.”
Of the more than 14,200 individuals charged in FY20, 267 defendants were charged in the Western District of North Carolina.
“Gun crimes are often committed by people prohibited from having guns in the first place,” said U.S. Attorney Murray. “Together with our law enforcement partners, we are committed to protecting our communities by keeping guns out of the wrong hands, taking violent criminals off our streets, and prosecuting those who violate federal gun laws.”
Under federal law, it is illegal to possess a firearm if you fall into one of nine prohibited categories including being a felon, illegal alien, or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to illegally purchase - firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, is also a federal offense. The Department is committed to prosecuting these firearms offenses as well as using all modern technologies available to law enforcement such as the National Integrated Ballistic Information Network, known as NIBIN, to promote gun crime intelligence. Keeping illegal firearms out of the hands of violent criminals will continue to be a priority of the Department of Justice and we will use all appropriate, available means to keep the law abiding people of this country safe from gun crime.
For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.
Four Individuals Are Charged for Operating as "Money Mules" in Separate Business Email Compromise SchemesRead the Press Release
CHARLOTTE, N.C. – Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced today federal charges against four individuals, for operating as “money mules” in two separate business email compromise schemes.
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. In addition to targeting businesses, BEC scams also often target individual victims, convincing victims to make wire transfers to bank accounts controlled by the scammers.
U.S. vs. Okwara
On September 17, 2020, a federal grand jury sitting in Charlotte returned a criminal indictment against Chukwudi Michael Okwara, 40, of Charlotte, for his involvement in a BEC scheme that defrauded at least six companies of approximately $2 million.
According to allegations contained in the indictment, 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 accounts are bank accounts used by fraudsters as a pass-through means of moving fraudulently obtained funds. As alleged in the indictment, Okwara used the money mule accounts to receive and launder the proceeds of business email compromise (BEC) scams perpetrated on the victim companies. Okwara also allegedly used false identities and conducted financial transactions with the fraudulently obtained proceeds in order to conceal their origins.
Okwara is charged with 27 counts of money laundering, which carry a maximum sentence of 20 years and a $500,000 fine per count; five counts of conducting financial transactions with illegal proceeds, which carry a maximum prison sentence of 10 years and a $250,000 fine per count; two counts of submitting false documents to banks, which carry a maximum prison term of 30 years and a $1,000,000 fine per count; and two counts of aggravated identity theft, which carry a mandatory minimum sentence of two years in prison, per count, to be served consecutively to any other sentence imposed.
Okwara had his initial appearance today before U.S. Magistrate Judge David C. Keesler. Okwara’s next court hearing is set for October 15, 2020, in Charlotte.
U.S. vs. Johnson et al.
A second indictment related to BEC fraud charges Linda Dianne Johnson, 70, of Charlotte, Wanda Jackson Barker, 71, of Athens, Texas, and Olayinka Agboola, 54, of Chicago, Illinois, with conspiracy to commit money laundering. Johnson is also charged with two counts of conducting financial transactions with illegal proceeds.
The indictment was returned on September 16, 2020, and was unsealed earlier this week. According to allegations in the indictment, Johnson, Barker, and Agboola operated as money mules and conspired to launder at least $575,000 derived from a fraudulent BEC scheme. The indictment alleges that the co-conspirators tricked the United States Department of State and a non-profit agency into wiring proceeds into bank accounts controlled by Johnson. Upon receipt of the fraud proceeds, Johnson, Barker, and Agboola executed financial transactions for the purpose of enriching themselves and their co-conspirators.
Johnson is set to appear in court in Charlotte on October 22, 2020. Barker’s initial appearance has been set for November 9, 2020. Agboola has not been arrested yet.
The money laundering conspiracy charge carries a maximum sentence of 20 years in prison and a $500,000 fine. Johnson faces a maximum sentence of 10 years in prison and a $250,000 fine for each charge of conducting financial transactions with illegal proceeds.
The charges in the indictments are allegations and the defendants are presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the investigating efforts of the U.S. Postal Inspection Service, the FBI, and U.S. Department of State, Office of the Inspector General, which led to the indictments.
Assistant United States Attorney Matt Warren is in charge of the prosecution against Okwara. Assistant United States Attorneys Caryn Finley and Graham Billings are handling the prosecution against Johnson, Barker and Agboola.
Federal Court Orders the Forfeiture of Drug House Near Western Carolina UniversityRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney R. Andrew Murray announced today that the U.S. District Court in Asheville has ordered the forfeiture of a residence located at 129 Reservoir Ridge Drive, in Cullowhee, N.C., used to facilitate extensive drug activities.
“The illicit drug trafficking that took place in the residence jeopardized the health and safety of the entire neighborhood. The drug activity was particularly harmful to the community because the house was adjacent to the campus of Western Carolina University and near a preschool,” said U.S. Attorney Murray. “Drug dealers who use their homes to conduct drug transactions are on notice: together with our enforcement partners, we will use all tools at our disposal to take action and protect law-abiding citizens.”
A federal civil forfeiture complaint filed by the U.S. Attorney’s Office on May 1, 2018, alleged that the residence was used for several years to facilitate the distribution of illegal narcotics, including LSD and marijuana. According to court documents, the residence was the site of multiple illegal drug transactions in 2017 and 2018, and posed a threat to the safety and welfare of the surrounding neighborhood, including the campus of Western Carolina University.
According to the complaint, as early as 2016, the Jackson County Sheriff’s Office began receiving complaints from neighbors concerning drug trafficking activities by the owner of the residence, Mark Loren Miller, who entertained heavy car and foot traffic on a daily basis. Court documents also show that Miller’s neighbors routinely recovered needles and other drug paraphernalia near the residence. In 2018, law enforcement executed a search warrant at the residence, and recovered MDMA, a drug commonly known as “Ecstasy,” a large amount of cash, digital scales, and other drug paraphernalia.
The civil case filed by the United States was stayed pending the resolution of Miller’s state criminal case. Following Miller’s guilty plea to state criminal charges related to his drug activities, litigation in federal court ensued. On Friday, October 2, 2020, the Court ordered the forfeiture of the residence to the United States.
In making today’s announcement U.S. Attorney Murray commended the collaboration between the Jackson County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the U.S. Attorney’s Office.
Assistant United States Attorney Jonathan D. Letzring, of the U.S. Attorney’s Office in Asheville, handled the civil proceedings.
Federal Jury Hands Down Guilty Verdict Against Charlotte Woman for Stealing $300,000 from an Elderly, Dementia-Afflicted VictimRead the Press Release
CHARLOTTE, N.C. – A federal jury handed down a guilty verdict against a Charlotte woman late yesterday, for her involvement in a $300,000 embezzlement scheme perpetrated on an elderly, dementia-afflicted victim, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Donna Graves, 58, was convicted of conspiracy to commit wire fraud and money laundering conspiracy. U.S. District Judge, Max O. Cogburn, Jr. presided over the trial.
Tommy D. Coke, Inspector in Charge of the of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, Michael E. Stansbury, Acting Special Agent in Charge for the FBI in North Carolina, and Chief Tim W. Ledford of the Mint Hill Police Department join U.S. Attorney Murray in making today’s announcement.
According to filed court documents, evidence presented at trial and witness testimony, from January 2015 through September 2019, Graves and her two co-conspirators, Gerald Maxwell Harrison and Elizabeth Robin Williams, engaged 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.
Trial evidence established that, beginning in February 2014, Graves and Williams provided housekeeping services for the victim through a business owned and operated by Graves. Court records show that, 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. According to trial evidence and witness testimony, 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.
Trial evidence also established that 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 they fraudulently “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 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 more than $300,000.
In May 2020, Williams and Harrison pleaded guilty to wire fraud conspiracy, interstate transportation of stolen property, and money laundering conspiracy. The wire fraud conspiracy charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The statutory maximum penalty for the money laundering conspiracy charge is 20 years in prison and a $500,000 fine. 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 U.S. Attorney Murray 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.
In March 2019, U.S. Attorney Murray announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: https://www.justice.gov/usao-wdnc/elder-justice-initiative
Charlotte Man Involved in Two Separate Identity Theft Schemes Pleads Guilty to Federal ChargesRead the Press Release
CHARLOTTE, N.C. – Jamel Johnson, 30, of Charlotte, appeared before U.S. Magistrate Judge David Keesler today, and pleaded guilty to federal charges for his role in two separate schemes involving identity theft, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Johnson was initially indicted on June 19, 2020, on bank and wire fraud conspiracy and aggravated identity theft charges, for his involvement in a scheme to obtain fraudulent bank loans using stolen personal information of identity theft victims. On September 25, 2020, new federal wire fraud charges were filed against Johnson, for using stolen identities to file for, and receive, COVID-19 Unemployment Insurance (UI) benefits.
According filed court documents and statements made at Johnson’s plea hearing today, from August 2019 to June 2020, Johnson and his co-conspirators engaged in a bank loan scheme involving the use of stolen personal identifying information of identity theft victims. Court documents show that, after acquiring the victims’ stolen identities on the internet and elsewhere, the co-conspirators used them to attempt to obtain more than $1,000,000 in fraudulent bank loans and goods.
According to court records, over the course of the investigation into the bank loan scheme, law enforcement discovered that Johnson was also executing a separate scheme involving COVID-19 UI benefits. In this scheme, court records show that, from May 21, 2020 through July 22, 2020, Johnson defrauded the U.S. Department of Labor, the State of Wisconsin, and the State of Arizona, by submitting fraudulent claims for unemployment insurance benefits in the names of identity theft victims. During the relevant time-period, Johnson fraudulently obtained more than $189,912 in fraudulent UI benefits using the compromised identities of approximately 70 victims. According to court records, Johnson directed that payments of the fraudulent UI benefits be made to Green Dot cards, or to bank accounts under Johnson’s control.
Johnson is currently on release pending sentencing. The charge of conspiracy to commit bank and wire fraud carries a maximum prison sentence of 30 years and a $1 million fine. The aggravated identity theft charge carries a minimum prison term of two years, consecutive to any other prison term imposed, and a $250,000 fine. The wire fraud charge carries a maximum prison sentence of 20 years and a $250,000 fine.
One of Johnson’s co-defendants in the bank loan scheme, Justin Parks, has also pleaded guilty to bank and wire fraud conspiracy and aggravated identity theft. A sentencing date for Johnson and Parks has not been set. The charges against David Clarke and Mikael Roberts for their alleged involvement in the loan scheme are still pending, and the defendants are presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray commended the U.S. Postal Inspection Service for their investigative efforts, and thanked the Atlanta Regional Office of the U.S. Department of Labor, Office of the Inspector General, and the Charlotte Mecklenburg Police Department for their invaluable assistance.
The prosecution for the government is handled by Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
Charlotte Man Is Charged with Insider TradingRead the Press Release
CHARLOTTE, N.C. – A criminal indictment in U.S. District Court charges Eric M. Hill, 44, of Charlotte, with insider trading, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. The indictment was returned by a grand jury last week and was unsealed this morning, following Hill’s initial court appearance.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, joins U.S. Attorney Murray in making today’s announcement.
The indictment alleges that between October 13, 2015, and October 26, 2015, Hill committed insider trading based on nonpublic information pertaining to a proposed acquisition of Piedmont Natural Gas Company, Inc. (Piedmont) by Duke Energy Corporation (Duke Energy). Stealing material, nonpublic inside information allows a trader to cheat and earn substantial profits by trading before such news becomes public, earning profits by trading again once the news becomes public and impacts the price of a stock.
According to allegations in the indictment, Hill misappropriated the nonpublic information from an employee of a consulting firm that provided services to Piedmont. The indictment alleges that Hill used the confidential information to conduct a series of securities transactions prior to and after the announcement of the acquisition of Piedmont by Duke Energy. The indictment further alleges that Hill took in over $380,000 as a result of his illegal insider trading activities.
Hill is charged with fraud in connection with the purchase and sale of securities, which carries a maximum prison term of 20 years and a $5 million fine. He is also charged with seven counts of securities fraud, which carry a maximum prison term of 25 years, and a fine of $250,000, per count.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In announcing the indictment, U.S. Attorney Murray commended the FBI for their investigation of this case. In a related matter, the Securities and Exchange Commission announced a separate civil action against Hill filed with the U.S. District Court in the Western District of North Carolina.
The prosecution for the government is handled by Assistant United States Attorneys Daniel Ryan and Graham Billings, of the U.S. Attorney’s Office in Charlotte.
Federal Authorities Announce More Seizures in Ongoing Effort to Combat COVID-19 Fraud SchemesRead the Press Release
CHARLOTTE, N.C. – Today, U.S. Attorney Andrew Murray announced the results of the U.S. Attorney’s Office latest public legal action in its ongoing efforts to combat fraud schemes seeking to exploit the coronavirus pandemic. A warrant resulting in the seizure of $140,490.34 from a bank account has been unsealed in federal court. Law enforcement seized the funds after determining that the account was used to perpetuate COVID-19 fraud.
Reginald A. DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney Murray in making today’s announcement.
The affidavit filed in support of the federal warrant alleges that the funds were seized as part of an investigation of a COVID-19 Small Business Administration (SBA) Paycheck Protection Program fraud scheme. The alleged scheme implicated a bank account purportedly opened by Oscar Estala, and/or one or more other individuals in the Western District of North Carolina. As alleged in court documents, the bank account identified in the seizure warrant was used to receive approximately $149,900 in funds fraudulently obtained from the SBA, purportedly for a small business named “VR Wesson.” The funds from the SBA are intended to provide financial assistance to qualifying small businesses and individuals impacted by the coronavirus outbreak. As alleged in the unsealed affidavit, law enforcement determined that the account that received the funds was not used to fund a business or employees impacted by COVID-19. Instead, the account was used to make retail and gift card purchases.
The unsealing of the warrant adds to a list of unsealed court documents in which the U.S. Attorney’s Office, the U.S. Secret Service, and other federal, state and local law enforcement partners, including the Charlotte-Mecklenburg Police Department, have coordinated and worked closely to combat fraud related to the coronavirus, and to recover hundreds of thousands in proceeds of such fraud.
In making today’s announcement, U.S. Attorney Murray commended the U.S. Secret Service for their work in this case. U.S. Attorney Murray also thanked financial institutions in the Western District of North Carolina for their cooperation and their efforts to detect and report COVID-19 financial fraud.
Assistant U.S. Attorney Benjamin Bain-Creed, of the U.S. Attorney’s Office in Charlotte, is handling the federal warrants.
U.S. Attorney Murray also urged the public to remain alert in detecting COVID-19 fraud and to report suspicious activity to the local authorities, or by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via 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 at the U.S. Attorney’s Office.
U.S. Attorney Announces the Indictment of 17 Gun Offenders as Part of the Justice Department's “Project Guardian” InitiativeRead the Press Release
CHARLOTTE, N.C. – Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced today the return of federal indictments against 17 individuals charged with federal firearms violations.
The indictments are the result of Project Guardian, the Justice Department’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by Attorney General William P. Barr in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence, and enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes. The initiative also improves information sharing, and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
“Gun violence remains a pervasive problem in communities across this district and our nation,” said U.S. Attorney Murray. “The indictments announced today are a testament to our ongoing coordination with our federal, state and local law enforcement partners and state prosecutors, and our shared commitment to reduce gun violence, remove firearms from the hands of felons, and bring to justice those who violate gun laws.”
“ATF has a long-standing commitment with our law enforcement partners to tackle gun violence and violent crimes in our communities,” said Vince Pallozzi, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “Removing violent criminals from our neighborhoods and recovering the firearms used in their crimes is a critical step toward stronger and safer neighborhoods.”
“We see every day how gun violence can cause heartache and destroy lives. Thanks to our partner agencies, the work done here is a step in the right direction to making communities safer and holding individuals accountable for their actions,” said Robert Schurmeier, Director of the North Carolina State Bureau of Investigation.
"Catawba County is a safer place today thanks to the incredible success of our local, state and federal partnership. The collaboration and teamwork demonstrated in this operation is some of the finest I have witnessed. I'm proud to have my office associated with these law enforcement professionals," said Sheriff Don Brown, of the Catawba County Sheriff’s Office.
“There is no doubt that these arrests will make our communities safer,” said Chief Thurman Whisnant of the Hickory Police Department. In Hickory, we very much appreciate the continued collaboration and cooperation among our local, state and federal law enforcement and prosecutors who are all committed to pursuing violent offenders that put our communities at risk.”
“The Long View Police department has a solid relationship with our federal, state, and local law enforcement partners. We are committed to disrupting criminal activity and keeping our communities safe. I am extremely proud of the law enforcement partnership and the outcome of this operation,” said Chief T.J. Bates of the Long View Police Department.
The 17 individuals indicted for firearms violations are:
- Trevin Ali Brown, 22, of Hickory, N.C.
- Chaetez Sean Clayton, 30, of Hickory, N.C.
- Shawn Malcolm Davis, 30, of Catawba, N.C.
- Donte Rassan Gore, 28, Hickory, NC.
- Daquan Lashawn Ikard, 30, of Hickory, N.C.
- Martavious Steven Isbell, 26, of Granite Falls, N.C.
- Gevon Marquise King, 36, of Hickory, N.C.
- Line Germaine Linebarger, 33, of Hickory, N.C.
- Robbie Octavion Little, 28, of Hickory, N.C.
- Curese Devin McIlwain, 35, of Hickory, N.C.
- Stanley Earl Reed, 29, of Hickory, N.C.
- Meguel Greylen Robinson, 25, of Hickory, N.C.
- Craig Anthony Ruff, 25, of Newton, N.C.
- Nicholas Anthony Santellan, 37, of Hickory, N.C.
- Michael Dwane Williams, 23, or Hickory, N.C.
- Wilburn Johnathan Wilson, 25, of Hickory, N.C.
- Tou Yang, 38, of Hickory, N.C.
As a result of the initiative, law enforcement have recovered more than 100 firearms, some o which were stolen, unregistered, or used in the commission of other violent crimes, ammunition, and a silencer, among other items. The defendants had their first court appearance in federal court in Charlotte today. Davis, Gore, McIlwain Robinson, Santellan, Wilson and Yang are also facing drug trafficking charges.
The charges 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, U.S. Attorney Murray thanked Scott Reilly, District Attorney for Caldwell, Burke and Catawba Counties. “Our partnership and collaboration with state prosecutors is a vital factor in the success of federal crime reduction initiatives like Project Guardian. I want to thank District Attorney Reilly for his office’s continued assistance and coordination with the U.S. Attorney’s Office, and I look forward to our continued joint efforts to increase safety in our communities,” said U.S. Attorney Murray.
The United States Attorney’s Office is prosecuting these cases with support from the following Project Guardian partners: the ATF, the SBI, the Catawba County Sheriff’s Office, the Hickory Police Department, and the Long View Police Department. The U.S. Secret Service, the FBI, the U.S. Marshals Service, and the Burke County Sheriff’s Office also assisted with the arrests.
Assistant U.S. Attorneys Lambert Guinn, Christopher Hess and Sanjeev Bhasker, of the U.S. Attorney’s Office in Charlotte, are handling the prosecutions.
For more information about Project Guardian, please visit: https://www.justice.gov/projectguardian
Federal Indictment Charges the Director of Public Works for the City of Brevard for the Illegal Disposal of Hazardous WasteRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has returned a criminal indictment, charging David Stuart Lutz, the Director of Public Works (DPW) for the City of Brevard, with environmental crimes related to the handling, transportation, and storage of hazardous waste, announced Andrew Murray U.S. Attorney for the Western District of North Carolina.
Chuck Carfagno, Special Agent in Charge of the U.S. Environmental Protection Agency, Criminal Investigation Division (EPA-CID) of the Atlanta Area Office, and Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), join U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the indictment, Lutz, 64, of Pisgah Forest, N.C., violated the Resource Conservation and Recovery Act, by illegally directing DPW employees to dig up soil known to be hazardous for lead, from the backstop of the City of Brevard’s (the City) firing range, without the use of any of the required protective equipment or procedural safeguards. The indictment further alleges that Lutz directed the employees to transport the contaminated soil in City-owned vehicles, without the requisite hazardous waste manifest. As alleged in the indictment, Lutz further instructed the employees to move the contaminated soil to the DPW Operations Center and store it there, even though the area is not permitted as a treatment, storage, or disposal location for hazardous waste, such as lead. According to the indictment, the alleged hazardous waste violations occurred from about May 3, 2016, to on or about May 5, 2016.
Lutz will have his initial appearance in federal court in Asheville, before U.S. Magistrate Judge W. Carleton Metcalf in the coming days.
The charges against Lutz are allegations. The defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The charge of illegally transporting hazardous waste without a manifest carries a maximum prison term of two years and a $50,000 for each day of violation. The illegal transportation of hazardous waste to an unpermitted facility, and the illegal storage of hazardous waste, each carry a maximum prison term of five years.
In making today’s announcement, U.S. Attorney Murray thanked the EPA-CID and the SBI for their investigation that led to charges.
Assistant United States Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Huntersville, N.C. Man Is Sentenced to Prison for Trafficking Narcotics on the Dark Web Using Bitcoin ATMs & Virtual WalletsRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell, sentenced Anthony Blane Byrnes, 19, of Huntersville, N.C., to 71 months in prison on drug charges, for trafficking narcotics he purchased on the dark web using cryptocurrency, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Byrnes was also ordered to serve four years of supervised release.
According to the Criminal Information to which Byrnes pleaded guilty, other documents filed in this case and statements made in court, Byrnes conspired with a regional Drug Trafficking Organization (DTO) to distribute narcotics on the Dark Web. In August 2019, law enforcement intercepted a mail parcel from Slovenia addressed to Byrnes, containing suspected narcotics. On or about August 7, 2019, law enforcement conducted a controlled delivery of this parcel at Byrnes’s Huntersville, NC residence. Law enforcement observed Byrnes gathering the parcel and entering his residence. Subsequently, law enforcement executed a search warrant at the residence and seized numerous narcotics and contraband, including LSD, Psilocin, DMT, MDMA/Ecstasy, among other narcotics and paraphernalia. Law enforcement also recovered two firearms from the residence. Court documents demonstrate Byrnes had a previous infraction in April 2019, wherein law enforcement seized additional narcotics and a firearm. In total, three firearms and approximately $13,800 (USD) were recovered from Byrnes’ residence over the course of the investigation.
According to court documents, Byrnes purchased narcotics on the Dark Net Marketplace (DNM) “Empire Market.” Byrnes paid for the drugs using Bitcoin cryptocurrency, stored in VC wallets and used Bitcoin ATM machines in the greater Charlotte area to facilitate drug transactions, converting drug proceeds into virtual currency (VC), and arranging drug shipments for the DTO.
In making today’s announcement, U.S. Attorney Murray commended the U.S. Postal Inspection Service for leading the investigation, and thanked the Drug Enforcement Administration, ICE’s Homeland Security Investigations, the U.S.Customs and Border Protection, and the Huntersville (NC) Police Department for their invaluable assistance.
Assistant United States Attorneys Sanjeev Bhasker and Seth Johnson, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.