Western District of North Carolina
Press releases recorded for this federal judicial district.
Charlotte Man Pleads Guilty to Wire Fraud for Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Joseph Maurice Deberry, a/k/a Joseph Maurice Dewberry, 56, of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer yesterday and pleaded guilty to wire fraud, for orchestrating an investment scheme that defrauded victims of hundreds of thousands of dollars, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte, join U.S. Attorney Murray in making today’s announcement.
According to admissions Deberry made in plea documents and yesterday’s plea hearing, from 2016 through June 2019, Deberry fraudulently obtained hundreds of thousands of dollars from more than a dozen investors. As part of the scheme, Deberry induced victims to invest in entities with which he was affiliated, such as Pinnacle Investment Properties, LLC and Place Capital Group LLC, among others. Deberry typically represented to investors that their money would be used to further projects related to the construction of student housing at certain colleges in the Carolinas and other ventures.
To further promote the fraudulent scheme and to induce his victims to part with their money, Deberry lied about his education, employment background, involvement in prior lawsuits and regulatory actions, previous success in student housing projects, and about how he would use the victims’ money. For example, Deberry falsely claimed that he studied at the London School of
Economics when he had never studied there, and falsely claimed that he had a successful career as an investment banker at Goldman Sachs, when he had never worked there.
As Deberry admitted in court yesterday and in related filings, rather than use the victims’ money as he had represented, Deberry used a significant portion of their funds to pay for personal expenses like rent, entertainment and travel. Further, Deberry actively concealed from his victims the fact that he was under a Cease and Desist Order from the state of North Carolina, which prohibited him from offering for sale, soliciting offers to purchase, or selling any securities in North Carolina. Deberry concealed this information from victims by, among other things, telling them that his name was Maurice Dewberry.
Deberry pleaded guilty to wire fraud. The charge carries a maximum prison sentence of 20 years and a $250,000 fine. A sentencing date for Deberry has not been set.
The FBI’s Charlotte Field Office and the USPIS handled the investigation.
Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Asheville Federal Prosecutor Selected as Buncombe County Bar Distinguished Young LawyerRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Assistant United States Attorney (AUSA) Caroline McLean, of the United States Attorney’s Office for the Western District of North Carolina, was selected as Buncombe County Bar Distinguished Young Lawyer for her contributions to the legal profession and the community as a member of the Bar. The announcement was made at the Buncombe Bar Annual Meeting on June 10, 2020.
AUSA McLean serves in the Civil Division of the Asheville U.S. Attorney’s Office. She is responsible for affirmative civil litigation on behalf of the United States, and defending the United States and federal agencies in a wide range of cases in federal and state court.
In making today’s announcement, U.S. Attorney Murray said, “AUSA McLean has exemplified the highest level of achievement as an attorney representing the United States, federal agencies, and federal employees. She has handled difficult and challenging cases, and has demonstrated exemplary legal skill and professionalism while obtaining impressive results in a wide range of cases, including medical malpractice, employment discrimination, tax, and affirmative civil enforcement cases.”
AUSA McLean joined the U.S. Attorney’s Office in 2018. Beyond her career in public service, AUSA McLean has contributed to the community through active participation in the Harry C. Martin Inns of Court in Asheville, an organization that promotes professionalism through mentoring and fostering collegiality within the legal profession. She also serves as a member of the Executive Board for the YMCA of Western North Carolina, a leading nonprofit committed to strengthening community through youth development, healthy living and social responsibility.
Prior to joining the United States Attorney’s Office, AUSA McLean was a litigation attorney with Ward and Smith, P.A., where she handled complex commercial and business litigation in state and federal courts. Prior to that, she served as a law clerk for the Honorable Louise W. Flanagan of the United States District Court for the Eastern District of North Carolina (USDC-EDNC). She also served as an extern for the Honorable W. Earl Britt of the USDC-EDNC, and also as an extern for the Honorable Graham C. Mullen of the United States District Court for the Western District of North Carolina.
A native of Charlotte, AUSA McLean graduated from Myers Park High School. She was selected to attend the University of Virginia (UVA) as a Jefferson Scholar. Following her graduation with distinction from UVA, AUSA McLean graduated from the University of North Carolina School of Law with High Honors, where she served as an Articles Editor on the Law Review, and was inducted into the Order of the Coif, an honorable society limited to those that graduate in the top ten percent of their class.
U.S. Attorney's Office Recognizes 20 Law Enforcement Officers for Their Outstanding AchievementsRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced that 20 law enforcement officers have been selected to receive the U.S. Attorney’s Office Excellence in the Pursuit of Justice award, for their significant contributions to the
mission of the Department of Justice, and their commitment to protecting the people of the Western District of North Carolina.
“Today, we honor 20 brave men and women for their tireless efforts to keep our communities safe, uphold our Nation’s laws, and ensure public safety,” said U.S. Attorney Murray. “I thank each of them for their dedication to the pursuit of justice, and for serving the people of Western North Carolina with fairness, integrity and excellence.”
Six recipients were selected to receive the Outstanding Individual Performance award for their exemplary contributions to cases prosecuted by the U.S. Attorney’s Office. They are:
Clint Bridges, Gastonia Police Department Detective and Task Force Officer with DEA’s High Intensity Drug Trafficking Areas (HIDTA) Task Force. Detective Bridges serves as the primary case agent in multiple DEA-HIDTA investigations in the Western District of North Carolina, targeting and dismantling high-level narcotics trafficking organizations. In 2019, Detective Bridges was the primary case agent for “Operation Iceberg,” which led to the seizure of more than 40 pounds of crystal methamphetamine, two kilograms of heroin, two kilograms of cocaine, 50 firearms, and $50,000 in cash, and the prosecution of 30 defendants.
Debra L. Harris, Senior Insolvency Specialist with the Internal Revenue Service, is being recognized for her exemplary work with the U.S. Attorney’s Office to protect the interests of the United States in the administration of the federal tax laws in the Western District.
Anthony J. Johnson, Detective with the Asheville Police Department, has been selected for his superior investigative work in the case of United States v. Knoke. Detective Johnson’s exceptional work helped secure a 15-year sentence for a serial child abuser, and led to the identification of over a dozen victims Knoke had abused over a 50-year span.
Dennis J. Miller, Charlotte-Mecklenburg Police Department Detective and Forfeiture Coordinator, was selected for his contribution to the success of dozens of criminal and civil forfeiture prosecutions each year in the Western District. In 2019, Detective Miller was integral to this office’s success in transferring a federally forfeited drug property to Habitat for Humanity. Detective Miller also volunteered, and solicited volunteers, to physically convert the dilapidated property into a newly constructed Habitat for Humanity home, which was presented to a deserving homeowner and her young daughter.
Jason Brent Reid, Detective with the Boone Police Department and Task Force Officer with Homeland Security Investigations, has been selected for his superior investigative work in U.S. vs Frank Cromwell, a case involving an alleged child predator who is facing federal charges for producing child pornography and victimizing multiple young men. The charges against Cromwell for his alleged conduct are still pending.
Tim Stutheit, Special Agent with the FBI’s Complex Financial Crime Squad, is the recipient of the award for his superior investigative work in cases involving financial fraud. In 2019, Special Agent Stutheit was the lead agent in at least four significant cases, and his thorough work was instrumental in assisting the U.S. Attorney’s Office to successfully prosecute multiple white collar criminals, including defendants who stole money from multiple victims, some of whom were elderly.
The U.S. Attorney’s Office also selected two investigative teams to be recognized in the Outstanding Case category, for their exceptional teamwork and collaboration over the course of an investigation. Seven law enforcement officers will be recognized for their collective investigative work in the above-referenced case, U.S. vs Frank Cromwell. The recipients are:
- Boone Police Department Detective and Homeland Security Investigations Task Force Officer Jason Brent Reid.
- Homeland Security Investigations Special Agents Patrick G. Wilhelm and W. Lee Swafford.
- North Carolina State Bureau of Investigation Assistant Special Agent in Charge Nathan Samuel Anderson.
- Watauga County Sherriff’s Office Captain Carolynn Johnson, Detective Terry A. Julian, and Detective Matt F. Rollins.
The following seven law enforcement officers were selected to receive the Outstanding Case award for their collective work in an extensive multi-agency, multi-state, and multi-defendant drug trafficking operation codenamed “Unicoi Pipeline.” This joint investigation conducted by law enforcement agencies in North Carolina and Georgia dismantled a drug conspiracy responsible for trafficking large quantities of methamphetamine between the two states, and led to the seizure of multiple pounds of methamphetamine, 65 firearms, and more than $30,000 in drug proceeds. The award recipients are:
- Clay County Sheriff’s Office Lieutenant Todd C. Wingate.
- Clay County Sheriff’s Office Investigator Thomas H. Woodard.
- DEA Task Force Officer and Swain County Sheriff’s Office Deputy Brian A. Leopard.
- Georgia Bureau of Investigation Assistant Special Agent in Charge Ken Howard.
- North Carolina State Bureau of Investigation Special Agent in Charge Brett Anders.
- Rockdale County Sheriff’s Office in Georgia Lieutenant Tyler Hooks.
- Union County Sheriff’s Office in Georgia, Deputy Jay McCarter.
This year, due to COVID-19 restrictions, the U.S. Attorney’s Office will not host a formal award ceremony. U.S. Attorney Murray will present recipients individually with an engraved award, commemorating their outstanding efforts and contributions to the fair and proper administration of justice.
Alleged Drug House in Charlotte is ForfeitedRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney R. Andrew Murray announced that, following a successful civil forfeiture proceeding, the U.S. Marshals Service, with the assistance of the Charlotte-Mecklenburg Police Department, has taken possession of a drug house at 2740 Lytham Drive in Charlotte (Lytham House), which is located roughly 450 feet from South Mecklenburg High School.
The United States’ forfeiture complaint alleged that the Lytham House was the site of significant and serious drug-related criminal activity and posed a threat to the safety and welfare of the surrounding neighborhood. According to court records, the Lytham House was the subject of seventy-nine calls for service to the Charlotte-Mecklenburg Police Department (CMPD) since 2013.
More specifically, according to allegations contained in the civil forfeiture complaint, the Lytham House was—in recent years—the site of, among other things: a drug-related double-homicide in which four people were shot; four separate drug overdoses; a first-degree arson where past residents burned down a shed on the property; the storage of a stolen vehicle with the knowledge and consent of at least one of the residents in order to aid with the theft; and numerous instances where law enforcement has found drugs, drug paraphernalia, and individuals in possession of drugs or using the Lytham House in conjunction with the trafficking of drugs. As a result of this activity, the U.S. Attorney’s Office used a provision of Title 21 designed to target narcotics residences in order to pursue forfeiture of the house.
In making today’s announcement, U.S. Attorney Murray thanked the U.S. Marshals Service, the U.S. Drug Enforcement Administration, and the Charlotte-Mecklenburg Police Department for their work on this case.
U.S. Attorney Murray said, “According to published news reports and interviews of neighbors, as well as the information set forth in the filed Complaint, this house was a scourge on a family-friendly neighborhood near a school. The U.S. Attorney’s Office, federal law enforcement, and CMPD will use all of the tools at their disposal—including but not limited to civil forfeiture—to remedy neighborhood problems caused by property owners who repeatedly allow and encourage criminal activity to plague Charlotte-area neighborhoods.”
Assistant United States Attorney Seth Johnson of the U.S. Attorney’s Office in Charlotte handled the proceedings. (Docket No. 3:20cv110).
Methamphetamine Trafficker Is Sentenced to 14 Years in PrisonRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Matthew Dean Lail, 35, of Valdese, N.C., was sentenced to 168 months in prison and five years of supervised release on federal drug charges. U.S. District Judge Max O. Cogburn Jr. presided over the sentencing.
According to information in filed court documents and today’s sentencing hearing, in June 2018, Lail was on supervised release on state criminal charges. On June 28, 2018, a probation officer with the North Carolina Division of Adult Correction and Juvenile Justice, accompanied by a deputy with the Burke County Sheriff’s Office, arrested Lail at his residence in Valdese, on outstanding warrants for probation violations. Law enforcement conducted a subsequent search of the residence and recovered more than 110 grams of methamphetamine, drug paraphernalia, a firearm and ammunition, and $426 in drug proceeds.
On October 28, 2019, Lail pleaded guilty to possession with intent to distribute methamphetamine. Lail is currently in federal custody and will be transferred to custody of the federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, the North Carolina Division of Adult Correction and Juvenile Justice and the Burke County Sheriff’s Office for their coordination and partnerships throughout the investigation and prosecution of this case.
Assistant United States Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Federal Judge Sentences Black Mountain, N.C. Man to Prison for Communicating A Threat on TwitterRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Max O. Cogburn Jr. sentenced Joseph Cecil Vandevere, 53, of Black Mountain, N.C. today to ten months in prison and one year of supervised release for using social media to communicate interstate threats, announced Andrew Murray, U.S. Attorney Office for the Western District of North Carolina. Judge Cogburn allowed Vandevere to self-report to the federal Bureau of Prisons upon designation of a federal facility.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents, evidence presented at trial, and today’s sentencing hearing, on March 13, 2018, Twitter user @DaDUTCHMAN5, later identified as Vandevere, used his social media account to send a message that contained a threat to injure an individual identified in court records as Q.R. In the message, Vandevere sent Q.R. a picture of a lynching accompanied by a death threat. FBI agents interviewed Vandevere on July 18, 2018, at which time he admitted to using social media under pseudonyms to send threatening messages. As trial evidence established, Vandevere sent the death threat to Q.R. because he did not agree with Q.R.’s religious beliefs.
On December 6, 2019, a federal jury convicted Vandevere of making a threatening communication to injure another person through interstate commerce.
In making today’s announcement U.S. Attorney Murray thanked the FBI for their investigation of this case. The U.S. Attorney’s Office in Asheville prosecuted the case for the United States.
Asheville Man Is Sentenced to More Than Nine Years in Federal Prison for Drug TraffickingRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Shannon Dale Henson, 46, of Asheville, to 112 months in prison, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also ordered Henson to serve four years under court supervision upon completion of his prison sentence.
According to filed court documents and today’s sentencing hearing, on two separate occasions, Henson was found to be in possession of methamphetamine. Specifically, on June 14, 2019, law enforcement conducted a traffic stop of the vehicle in which Henson was a passenger. Over the course of the traffic stop, law enforcement recovered more than six ounces of methamphetamine from inside the vehicle. On July 21, 2019, law enforcement conducted another traffic stop of the vehicle in which Henson was a passenger, this time recovering more than three ounces of methamphetamine from inside the vehicle. Court records show that Henson has mutliple prior criminal convictions, including assault and drug related charges. On December 20, 2019, Henson pleaded guilty to possession with intent to distribute methamphetamine.
In making the announcement, U.S. Attorney Murray thanked the Hendersonville Office of Homeland Security Investigations; the Polk County Sheriff’s Office; and the North Carolina State Highway Patrol for handling Henson’s investigation.
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In a separate case, Judge Reidinger also sentenced Prophet Karim Hadialim Allah a/k/a “Prophet Allah” a/k/a “Profit,” 47, of Leicester, N.C. to 108 months in prison followed by five years of supervised release. According to court documents and today’s sentencing hearing, Allah was part of an eight-defendant drug trafficking conspiracy operating in Buncombe County, including in and around the Bartlett Arms Apartments in Asheville. Court records show that, between October and November 2018, and over the course of the conspiracy, Allah distributed more than 15 ounces of methamphetamine to a co-conspirator, and made several deliveries of methamphetamine at the request of another co-conspirator. Allah, who has multiple prior felony convictions, pleaded guilty on November 22, 2019, to conspiracy to distribute and to possess with intent to distribute narcotics.
U.S. Attorney Murray commended the Drug Enforcement Administration; the Asheville Police Department’s Drug Suppression Unit; the Buncombe County Anti-Crime Task Force; the Black Mountain Police Department; the Wilkes County Sheriff’s Office; and the Hendersonville Office of Homeland Security Investigations for handling Allah’s investigation, and thanked the Asheville Police Department’s Criminal Investigation Division; the Buncombe County Sheriff’s Office Community Enforcement Team; the North Carolina State Bureau of Investigation; and the Asheville Office of the Bureau of Alcohol, Tobacco, Firearms and Explosives for their invaluable assistance in this case.
Both defendants are in custody and upon designation of a federal facility they will be transferred to the custody of the federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, prosecuted both cases.
Armed Career Criminal Is Sentenced to More Than 16 YearsRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that David Matthew Harold, 42, of Weaverville, N.C., was sentenced to 200 months in prison and five years of supervised release on federal firearms offenses. U.S. District Judge Max O. Cogburn Jr. presided over the sentencing.
According to court documents and today’s sentencing hearing, on multiple occasions between June and July 2017, Harold illegally possessed firearms and ammunition, and was involved in three separate shooting incidents. Court documents show that the first incident occurred on June 25, 2017, during which Harold fired at least four shots in the parking lot of an apartment complex in Burnsville, N.C. There were no injuries resulting from the incident, but at least one of the shots struck an unoccupied parked vehicle. Court records show that, sometime after the incident, Harold told two other individuals that he fired the shots to retaliate against a neighbor for calling the police to register a noise complaint against Harold. Law enforcement recovered four empty shell casings in connection with the shooting incident.
According to court records, the second incident occurred on July 11, 2017, during which Harold discharged a firearm into an occupied residence in Leicester, N.C. At the time of the incident, the individual targeted by Harold was not at home but his parents were, though they were not injured. According to court documents, law enforcement later observed five bullet holes in the house targeted by Harold, and recovered bullets from inside the residence.
According to court documents, the third shooting incident occurred on July 16, 2017, during which Harold discharged a firearm into an occupied residence located in Mars Hill, N.C. In this incident, Harold shot in the leg a minor victim who happened to be standing outside the residence. Court documents show that Harold shot the residence in retaliation, after he accused an individual who resided in the home of being a “snitch.” The minor was taken to the hospital and treated for his injuries. Law enforcement recovered seven spent cartridge casings on the ground outside the residence.
At the time these incidents occurred, Harold was a convicted felon and was an unlawful user of controlled substances, and was therefore prohibited from possessing a firearm or ammunition. Specifically, Harold was previously convicted of common law robbery, felonious breaking and entering, larceny after breaking and entering, and injury to personal property.
At today’s sentencing hearing, the Government presented additional evidence concerning two separate incidents that occurred while Harold was on pretrial confinement, during which Harold assaulted and injured two inmates.
On March 4, 2020, Harold pleaded guilty to possession of a firearm by a convicted felon, and two counts of possession of ammunition by a convicted felon. At today’s sentencing hearing, the Court classified Harold as an “Armed Career Criminal.”
Harold is currently in federal custody and will be transferred to custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
In making today’s announcement U.S. Attorney Murray thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Buncombe County Sheriff’s Office, the Unicoi County Sheriff’s Office in Tennessee, the Mars Hill Police Department and the Burnsville Police Department for their coordination and partnerships throughout the investigation and prosecution of this case.
Assistant United States Attorney Don Gast, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
Statesville Man Is Sentenced to Prison for CyberstalkingRead the Press Release
CHARLOTTE, N.C. – Late yesterday, U.S. District Judge Kenneth D. Bell sentenced Charles Timothy Browne, 57, of Statesville, N.C., to 43 months in prison and three years of supervised release, for cyberstalking a woman residing in Maryland, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
John A Strong, Special Agent in Charge of the FBI in North Carolina, joins U.S. Attorney Murray in making today’s announcement.
According to information in filed court documents and the sentencing hearing, in December 2017, and January 2018, Browne sent a Maryland woman approximately 731 harassing and intimidating texts including, “I like my new gun,” “Now your gonna feel some pain,” and “Lock your door.” Court records show that Browne also texted a mutual friend that he was going to shoot the woman in the face. Browne’s repeated texting caused the Maryland woman substantial emotional distress and to fear that he would kill or seriously injure her.
On February 3, 3030, Browne pleaded guilty to cyberstalking. At yesterday’s sentencing hearing, Judge Bell enhanced Browne’s sentence because, at the time he sent the harassing and intimidating texts to the Maryland woman, a judge-issued protective order was in effect that prohibited him from abusing, threatening to abuse, harassing and/or contacting her. Between 2004 and 2017, Browne had been subject to six protective orders.
In making today’s announcement, U.S. Attorney Murray commended the FBI for their investigation of this case.
Assistant United States Attorney Kimlani M. Ford, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Two Mint Hill Residents Plead Guilty to Federal Charges for Stealing More Than $400,000 from an Elderly, Dementia-Afflicted VictimRead the Press Release
CHARLOTTE, N.C. – Gerald Maxwell Harrison, 53, and Elizabeth Robin Williams, 55, both of Mint Hill, N.C., have pleaded guilty to federal charges for conspiring with each other and other individuals to steal more than $400,000 from an elderly victim who suffered from dementia, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Tommy D. Coke, Inspector in Charge of the of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, John A Strong, 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 Harrison and Williams’ plea agreements, court documents filed in the case, and court proceedings, from January 2015 through September 2019, Harrison, Williams, and their co-conspirator, Donna Graves, 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.
According to court records, 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 Harrison, Williams, and Graves isolated the victim from her friends and family, and induced the victim to give them power and control over her financial and personal affairs. Once they gained access and control, Williams, Harrison, and Graves 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, they fraudulently “maxed out” at least one credit card in the victim’s name, they fraudulently transferred or attempted to transfer the victim’s assets to themselves, 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 $400,000.
Harrison pleaded guilty today to wire fraud conspiracy, interstate transportation of stolen property, and money laundering conspiracy. His co-defendant, Williams, pleaded guilty to the same charges on May 14, 2020. The wire fraud conspiracy charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The interstate transportation of stolen property charge carries a maximum prison term of 10 years 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 charges in the indictment for the alleged conduct of the third co-defendant, Donna Gravers, are still pending and they are considered allegations. The defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray commended the FBI, USPIS, and the Mint Hill Police Department 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, 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: /usao-wdnc/elder-justice-initiative
U.S. Attorney Andrew Murray Announces the Winners of the 4th Annual "Do the Write Thing" Essay Contest During Virtual Award CeremonyRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced the two winners of the 4th Annual “Do the Writing Thing” (DtWT) essay contest, during a virtual award ceremony livestreamed today via Facebook Live and Instagram.
The “Do the Write Thing” essay contest is a program of the National Campaign to Stop Violence. The core aim of the program is to empower middle school students to examine and write about the impact of violence in their lives, and to become catalysts for positive change.
A total of 1,567 essays written by middle school students attending Asheville City and Buncombe County Schools were submitted for consideration, and the essays of 12 students were selected as finalists. Of the 12 finalists, Caroline Burton, a 7th grader with Asheville Middle School, and Noah Graham, an 8th grader with North Buncombe Middle School, were announced as this year’s winners of the essay contest. Speaking at today’s virtual event, U.S. Attorney Murray congratulated the two winners and the 10 finalists for their accomplishment, and commended all the students who participated in the writing contest.
“Violence comes in many shapes and sizes,” said U.S. Attorney Murray, who chairs the DtWT committee in Asheville. “Violence can happen in schools, on social media, in homes, and in neighborhoods. Those of us in law enforcement know that prevention plays a crucial role in reducing violence. The Do the Write Thing essay challenge is an opportunity for students to use the written word to express the impact of any form of violence on their lives, to examine its causes and to offer solutions to help decrease violence in their communities. But, most importantly, it provides students with a voice and forum to be heard. The voices and ideas of our youth are critical in our preventive efforts and must be encouraged. The U.S. Attorney’s Office is proud to be a part of this valuable program,” U.S. Attorney Murray added.
During today’s virtual ceremony, U.S. Attorney Murray thanked the Asheville City Schools, the Buncombe County Schools, the Asheville Police Department, the Buncombe County Sheriff’s Office, the Asheville Housing Authority and Western North Carolina Rescue Mission for partnering with the U.S. Attorney’s Office to form the DtWT committee and to implement the program in both school systems.
U.S. Attorney Murray also recognized the teachers, school administrators, counselors, parents, guardians, and caregivers for their dedication in this important endeavor, and thanked them for supporting the students’ efforts and for ensuring that, under these unprecedented circumstances, students continue to reach their full potential.
For more information on the national “Do the Write Thing” program please visit http://www.dtwt.org.
Leader of Methamphetamine Trafficking Ring Is Sentenced to 12.5 YearsRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that the leader of a methamphetamine trafficking ring was sentenced to 151 months in prison on drug charges. In addition to the prison term imposed, U.S. District Judge Martin Reidinger also ordered Michael McCray Sykes, 34, of Clyde, N.C., to serve five years under court supervision after he is released from prison.
According to filed court documents and today’s sentencing hearing, from February 2018, to April 6, 2018, Sykes distributed and transported large amounts of methamphetamine into Haywood and Jackson Counties and elsewhere. Court documents show that Sykes made trips to purchase methamphetamine from a supply source located in Georgia, and transported the drugs back to Western North Carolina. From at least April 5, 2018, to April 6, 2018, Sykes and his two co-defendants, Savanah Pauline Justice and Bradford Junior Ledford, operated as a drug conspiracy that transported a large quantity of methamphetamine into Western North Carolina for distribution.
According to court records, on April 6, 2018, Sykes and his two co-conspirators were driving back to North Carolina in two separate vehicles, after purchasing a large quantity of methamphetamine from their supplier in Georgia. Sykes and Ledford were in one vehicle and Justice was in the second one. As filed documents show, law enforcement conducted a traffic stop of both vehicles, and recovered just under two pounds of methamphetamine from beneath the driver’s seat of the vehicle Justice was driving. As Sykes previously admitted in court documents, the co-conspirators had purchased the methamphetamine in Georgia and intended to bring it back to Western North Carolina to distribute it locally.
On December 23, 2019, Sykes pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. He is currently in federal custody. Justice and Ledford have pleaded guilty to drug charges and are currently awaiting sentencing.
In making today’s announcement, U.S. Attorney Murray thanked the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the North Carolina Highway Patrol; the Jackson County Sheriff’s Office, the Swain County Sheriff’s Office, the Haywood County Sheriff’s Office, and the Waynesville Police Department for work in this case. He also thanked District Attorney Ashley Welch for her office’s coordination over the course of the investigation and prosecution of this case.
Special Assistant United States Attorney (SAUSA) Alexis Solheim is prosecuting the case. Ms. Solheim is a state prosecutor with the office of the 30th Prosecutorial District, and was assigned by District Attorney Ashley Welch to serve as 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 30th Prosecutorial District and the United States Attorney’s Office. The SAUSA position helps ensure the effective and vigorous prosecution of federal court cases that impact the counties within the 30th Prosecutorial District.
Asheville Auto Repair Shop Owner Is Sentenced to 10 Years on Gun ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today Charles Lloyd Brown, III, 39, of Asheville, to 120 months in prison and five years of supervised release on gun charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief David Zack of the Asheville Police Department join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and court proceedings, on July 4, 2019, officers with the Asheville Police Department conducted a traffic stop of the vehicle Brown was driving. Over the course of the traffic stop, officers recovered narcotics from inside Brown’s vehicle, and located a firearm and additional narcotics Brown had discarded from his vehicle. On July 24, 2019, law enforcement executed a search warrant at Brown’s auto repair shop, Charlies Auto Care, located in Asheville. During that search, law enforcement recovered 28 firearms, seven of which were stolen, narcotics, and drug paraphernalia.
On December 23, 2019, Brown pleaded guilty to two counts of possession of a firearm in furtherance of a drug trafficking crime. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the ATF and the Asheville Police Department for their investigation of this case.
Special Assistant U.S. Attorney (SAUSA) Alexis Solheim, with the U.S. Attorney’s Office in Asheville, prosecuted the case. Ms. Solheim is a state prosecutor with the office of the 30th 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 30th Prosecutorial District and the United States Attorney’s Office.
Beware of SBA Loan Scams, Government Officials WarnRead the Press Release
CHARLOTTE, N.C. – Government officials issued a warning today, to alert the public about potential fraud schemes related to economic stimulus programs offered by the U.S. Small Business Administration to assist small business owners during the COVID-19 pandemic.
Andrew Murray, U.S. Attorney for the Western District of North Carolina, John A. Strong, Special Agent in Charge of the FBI in North Carolina, and Kevin Kupperbusch, Special Agent in Charge of the Small Business Administration, Office of the Inspector General (SBA-OIG), Eastern Region, made the announcement today.
“During these unprecedented times, when small business owners impacted by COVID-19 are doing their best to keep their businesses afloat, it is easy to fall prey to scammers. We advise everyone to remain vigilant in safeguarding their personal and their business information, and to be particularly discerning of emails or other solicitations related to economic relief programs. As always, we are working in coordination with our law enforcement partners to identify fraudulent schemes and to bring scammers to justice, but the best first line of defense is for the public to exercise extreme caution before divulging important information to those who may be using economic relief programs as an opportunity to commit fraud,” said U.S. Attorney Andrew Murray.
“While American small business owners and employees are struggling, fraudsters are busy trying to steal the money meant to help those families survive. With billions of dollars in aid available, they will try every trick in the book to rob the rightful recipients of those funds. The FBI along with our partners are working every day to keep Americans safe during this unprecedented time. We want to remind everyone to go to official sites for information and never trust a text, email, or phone call promising a deal that sounds too good to be true,” said FBI Special Agent in Charge John Strong.
“Fraudsters prey upon those in vulnerable positions, and this is a critical time for our nation’s small businesses,” said SBA OIG Special Agent in Charge Kevin Kupperbusch. “SBA OIG and its law enforcement partners are actively working together to root out fraud in SBA’s programs and bring those responsible to justice. The public is encouraged to learn about potential fraud schemes and scams as a safeguard to being victimized.”
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), is the largest financial assistance bill to date, and includes provisions to help small businesses. The public is warned to be extra vigilant in protecting their information and to be on the lookout for grant fraud, loan fraud, and phishing, as scammers are targeting small business owners during these economically difficult times.
To raise awareness, the SBA’s Office of Inspector General has published the following information pertaining to possible scams and emerging fraud schemes:
- The SBA does not initiate contact on either 7a or disaster loans or grants. If you are proactively contacted by someone claiming to be from the SBA, suspect fraud.
- If you are contacted by someone promising to get approval of an SBA loan, but requires any payment up front or offers a high interest bridge loan in the interim, suspect fraud.
- The SBA limits the fees a broker can charge a borrower to 3% for loans $50,000 or less and 2% for loans $50,000 to $1,000,000 with an additional ¼% on amounts over $1,000,000. Any attempt to charge more than these fees is inappropriate.
- Look out for phishing attacks/scams utilizing the SBA logo. These may be attempts to obtain your personally identifiable information (PII), to obtain personal banking access, or to install ransomware/malware on your computer.
- If you are in the process of applying for an SBA loan and receive email correspondence asking for PII, ensure that the referenced application number is consistent with the actual application number.
- Any email communication from SBA will come from accounts ending with sba.gov.
- The presence of an SBA logo on a webpage does not guarantee the information is accurate or endorsed by SBA. Please cross-reference any information you receive with information available at www.sba.gov.
If you have a question about getting an SBA disaster loan, call 800-659-2955 or send an email to [email protected]. If you have questions about other SBA lending products, call SBA’s Answer Desk at 800-827-5722 or send an email to [email protected]. The above-referenced list of emerging SBA scams and additional information can also be accessed at: https://www.sba.gov/document/report--sba-programs-scams-fraud-alerts.
If you think you are a victim of a scam or attempted fraud involving SBA loans and COVID-19, contact the SBA OIG hotline at (800) 767-0385, or online at: https://sbax.sba.gov/oigcss/.
You can also report the fraud by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form.
U.S. Attorney Andrew Murray Honors Law Enforcement Officers and Pays Tribute to Fallen Heroes in Observance of National Police WeekRead the Press Release
CHARLOTTE, N.C. – In observance of National Police Week, U.S. Attorney Andrew Murray honors federal, state, local, and tribal law enforcement officers for their courage and service, and pays tribute to the brave officers who lost their lives in the line of duty. The week will be observed Sunday, May 10 through Saturday, May 16, 2020.
“There is no more noble profession than serving as a police officer,” said Attorney General William P. Barr. “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, but also in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted.”
“During National Police Week we pay tribute to America’s federal, state, local and tribal law enforcement officers, and we thank them for their service. Every day, the courageous men and women in law enforcement place the safety and security of their communities above their own, and do so with bravery and honor. This week is also a time to remember the officers who made the ultimate sacrifice and lost their lives in the line of duty. To all the brave, fallen officers and their families, we offer our deepest gratitude and respect, and we salute your sacrifices and your legacy,” said Andrew Murray, U.S. Attorney for the Western District of North Carolina.
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. This year the COVID-19 pandemic has underscored law enforcement officers’ courage and unwavering devotion to the communities they swore to serve.
Based on data collected and analyzed by the FBI’s Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 89 law enforcement officers died nationwide in the line of duty in 2019. Among those who made the ultimate sacrifice is Officer Harris Sheldon, of the Mooresville Police Department, who was killed on May 4, 2019, while conducting a traffic stop.
Comprehensive data tables about these incidents and brief narratives describing most of the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2019.
The names of the fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial will be read on Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil. Because public events have been suspended as a result of COVID-19, the vigil will be livestreamed to the public at 8:00 pm (EDT). The online event can be viewed at https://www.youtube.com/user/TheNLEOMF.
Co-Owner of Statesville Trucking Company Is Sentenced to Prison for Wire FraudRead the Press Release
CHARLOTTE, N.C. – Nathaniel Brad Moffitt, 40, of Statesville, N.C., was sentenced to 15 months in prison late yesterday for fraudulently obtaining more than $500,000 in business loans, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Kenneth D. Bell also ordered Moffitt serve two years of supervised release, and to pay approximately $114,000 as restitution.
John A. Strong, Special Agent in Charge of the FBI in North Carolina joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents and information introduced at the sentencing hearing, Moffitt co-owned a trucking company in Statesville with another individual, identified in court documents as B.S. Court records show that from September 2015 to April 2018, Moffitt stole B.S’s name and personal information, and used it to obtain more than $500,000 in fraudulent business loans. To further the fraud, Moffitt made telephone calls and sent emails to apply for and execute the loans, and on at least one telephone call he impersonated B.S. Moffitt used the loan proceeds to pay for legitimate business expenses and for his own personal benefit. At the time the fraud was discovered, the outstanding balance on the loans was more than $100,000. According to court records, as a result of the Moffitt’s fraud, the trucking company had to declare bankruptcy. On November 18, 2019, Moffitt pleaded guilty to wire fraud.
In making today’s announcement, U.S. Attorney Murray thanked the FBI, for their investigation of this case.
Assistant U.S. Attorney Caryn Finley, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Hendersonville, N.C. Man Is Sentenced to 17.5 Years in Prison for Distributing Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell sentenced Brian Scott Harden, 39, of Hendersonville, N.C. late yesterday to 210 months in prison on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Harden was also ordered to pay a $5,000 special assessment, serve a lifetime term of supervised release, and register as a sex offender after he is released from prison.
John A. Strong, Special Agent in Charge of the FBI in North Carolina, and Sheriff Darren Campbell of the Iredell County Sheriff’s Office join U.S. Attorney Murray in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, law enforcement became aware that on June 13, 2018, Harden was distributing child pornography to another individual via “Skype,” an internet messaging app that allows users to video chat and share messages, images, and videos. Law enforcement executed a search at Harden’s residence, and seized multiple computer devices, cellular phones and a CD. A forensic analysis of the seized items revealed that Harden possessed more than 600 images of child pornography, including images of children under 12, and material depicting the violent, sadistic or masochistic sexual abuse of children.
As Harden admitted in filed court documents, prior to his arrest, he had been sending and receiving child pornography online for at least two years. Harden further admitted that he frequently visited websites and chat rooms online to locate and download child pornography, and to trade images with other individuals.
On September 12, 2019, Harden pleaded guilty to distribution and attempted distribution of child pornography. Harden is currently in federal custody. All federal sentences are served without the possibility of parole.
U.S. Attorney Murray thanked the FBI and the Iredell County Sheriff’s Office for their investigation of this case.
Assistant U.S. Attorney Emily Wasserman prosecuted the case, and Assistant U.S. Attorney Mark Odulio represented the Government at the sentencing hearing.
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
Two Methamphetamine Dealers Are Sentenced to Prison as Part of Ongoing Drug Trafficking Task Force InvestigationRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that an ongoing multi-agency drug trafficking task force investigation has resulted in lengthy prison sentences for two methamphetamine traffickers.
U.S. District Judge Kenneth D. Bell sentenced Ashley Dawn Walker, 33, of Lansing, N.C., to 120 months in prison and five years of supervised release. Cody Ryan Oakes, 31, of Boone, N.C., was also sentenced to 120 months in prison and five years of supervised release.
U.S. Attorney Murray is joined in making today’s announcement by Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Ronnie Martinez, Special Agent in Charge of the 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; Sheriff B. Phil Howell of the Ashe County Sheriff’s Office; Sheriff Len D. Hagaman, Jr. of the Watauga County Sheriff’s Office; and Chief Dana Crawford of the Boone Police Department.
According to filed court documents and today’s sentencing hearing, from 2018 until July 2019, Walker was a member of a drug conspiracy trafficking methamphetamine in Ashe County. In addition to trafficking methamphetamine, Walker previously admitted that, on two occasions, she and her co-conspirators participated in drug-related robberies of competitor drug dealers. On December 17, 2019, Walker pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine.
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In Oakes’ case, court records show that Oakes conspired with Jared Pardue, who during the relevant time period was incarcerated in Georgia, to buy methamphetamine from Pardue’s supply source in Georgia. Oakes then transported the methamphetamine back to Western North Carolina and sold to it to local dealers. According to court records, from January 2019 to June 2019, Oakes trafficked approximately 3.5 kilograms of methamphetamine from Georgia to Watauga County and elsewhere. Oakes pleaded guilty on November 5, 2019, to conspiracy to distribute and to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. Pardue has pleaded guilty to federal drug trafficking charges for his role in the conspiracy and is currently awaiting sentencing.
Both defendants are currently in federal custody. Federal sentences are served without the possibility of parole.
The two defendants were prosecuted as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation. According to court documents, since 2015, more than 200 individuals have been prosecuted, and more than 100 pounds of methamphetamine, $1,000,000 in cash, and 60 firearms have been seized, as a result of the investigation.
In making today’s announcement, U.S. Attorney Murray thanked all of the law enforcement agencies involved for their outstanding investigative work.
Assistant U.S. Attorney Steven R. Kaufman is prosecuting both cases.
McDowell County Man Is Sentenced to More Than 12 Years in Federal Prison for Drug TraffickingRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced Mitchell Gilliland, 30, of Nebo, N.C., today to 148 months in prison, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also ordered Gilliland to serve five years under court supervision.
Joining U.S. Attorney Murray in making today’s announcement are Ronnie Martinez, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in North Carolina; Sheriff Ricky Buchanan of the McDowell County Sheriff’s Office; and Police Chief Allen Lawrence of the Marion Police Department.
According to filed court documents and today’s sentencing hearing, on the evening of May 9, 2019, an officer with the Marion Police Department conducted a traffic stop of the vehicle Gilliland was driving for driving over the speed limit and other traffic violations. Over the course of the traffic stop, law enforcement conducted a search of Gilliland’s vehicle, and recovered a half pound of methamphetamine, a loaded firearm, and more than $34,000 in drug proceeds. Gilliland has multiple prior felony convictions and he is prohibited from possessing a firearm or ammunition.
On October 22, 2019, Gilliland pleaded guilty to possession with the intent to distribute methamphetamine. He is currently in fedaral custody. All federal sentences are served without the possibility of parole.
The investigation was handled by the HSI, the McDowell County Sheriff’s Office, and the Marion Police Department.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Asheville Man Is Sentenced to Seven Years in Prison for Downloading Child PornographyRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Sammy Horace Williams, II, to 84 months in prison and a lifetime of supervised release on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Williams, 55, of Asheville, was also ordered to register as a sex offender after he is released from prison, and to pay a $5,000 special assessment and $3,000 in restitution.
Ronnie Martinez, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in North Carolina joins U.S. Attorney Murray in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, Homeland Security Investigations (HSI) agents conducting an investigation into child pornography on the internet became aware that an individual, later identified as Williams, was accessing child pornography online. On May 18, 2017, HSI agents executed a search warrant at Williams’ residence. During the search, they seized multiple computer devices, thumb drives, and CDs belonging to Williams. A forensic analysis of the seized items revealed that Williams possessed more than 450 videos and 1,647 images of child pornography, some of which depicted prepubescent minors engaging in sadistic and masochistic or other lewd and lascivious conduct.
On October 30, 2019, Williams pleaded guilty to receiving child pornography. In filed plea documents, Williams admitted to downloading child pornography via the internet to his computer and other storage devices.
Williams is currently in federal custody. All federal sentences are served without the possibility of parole.
U.S. Attorney Murray thanked HSI for their handling of this investigation. The U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Brooklyn Man Charged with Traveling to Charlotte to Engage in A Sexual Activity with A Minor Appears in Federal CourtRead the Press Release
CHARLOTTE, N.C. – A New York man appeared in federal court today, on charges of traveling from Brooklyn to Charlotte for the purpose of engaging in illicit sexual conduct with a minor, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Manuel Oppenheimer, 26, had his initial appearance this morning before U.S. Magistrate Judge David S. Cayer.
John A. Strong, Special Agent in Charge of the FBI in North Carolina; Sheriff Eddie Cathey of the Union County Sheriff’s Office; and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department join U.S. Attorney Murray in making today’s announcement.
“The internet has been an essential tool during the COVID-19 outbreak, helping children continue their studies through remote learning and stay connected with teachers, classmates, friends and family through social media and other apps,” said U.S. Attorney Murray. “However, more unmonitored screen time can lead to an increased risk of exposure to all the dangers that lurk on the internet, including child predators who leverage social media to target and exploit innocent children. I urge parents to take proper precautions and be extra-vigilant in monitoring their children’s online activity, so kids can continue to take advantage of all the positive things the digital world has to offer and safely use their electronic devices to enrich their lives, while staying safe from predators and other online threats.”
According to allegations contained in the federal charging document, on April 16, 2020, the Union County Sheriff’s office received information regarding a missing 14-year-old female, who was possibly located in Charlotte with an adult male, later identified as Oppenheimer. CMPD officers were able to locate the minor at a residence in Charlotte, and the minor was returned to Union County. Law enforcement subsequently arrested Oppenheimer.
According to allegations in the criminal complaint, law enforcement determined that Oppenheimer met the minor on “Omegle,” a free online chat website, and later began talking to the minor on “Snapchat,” a mobile app that allows users to share messages, photos, and videos. The federal criminal complaint alleges that Oppenheimer wanted to meet the minor in April due to the COVID-19 outbreak, otherwise it was possible their meeting would need to be postponed up to a year, until the outbreak was over. The criminal complaint further alleges that the defendant was aware that the victim was a minor, and that he traveled from New York to Charlotte to meet with the minor for the purpose of engaging in sexual contact.
Oppenheimer is charged with one count of traveling across state lines for the purpose of engaging in sexual activity with a minor. He is currently in federal custody.
The charges contained in the criminal complaint are allegations. The defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
U.S. Attorney Murray thanked the FBI, the Union County Sheriff’s Office, and CMPD for their investigation of this case.
Assistant U.S. Attorney Alfredo De La Rosa, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
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For additional information and helpful tools about children’s online safety please visit the FBI’s Safe Online Surfing website and view this video.
Also visit the Justice Department’s website to learn more about measures parents, guardians, caregivers and teachers can take to help protect children from becoming victims of online child predators.
Immediately report suspected online enticement or sexual exploitation of a child by calling 911, contacting the FBI at tips.fbi.gov, or filing a report with the National Center for Missing & Exploited Children (NCMEC) at 1-800-843-5678 or report.cybertip.org.
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.
Testing Laboratory Agrees to Pay up to $43 Million to Resolve Allegations of Medically Unnecessary TestsRead the Press Release
Genova Diagnostics Inc., a clinical laboratory services company based in Asheville, North Carolina, has agreed to pay up to approximately $43 million to resolve allegations that it violated the False Claims Act, including claims that it billed for medically unnecessary lab tests, the Department of Justice announced today.
“Government healthcare programs are designed to provide beneficiaries with care that is medically reasonable and necessary,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Providers of taxpayer-funded federal healthcare services will be held accountable when they knowingly cause false claims to be submitted for services that do not meet this standard of care.”
“The False Claims Act is an important legal tool in our rigorous fight to protect the integrity of our healthcare system from providers like Genova Diagnostics, that bill government programs for non-covered testing to boost profits at the expense of taxpayer dollars,” said Andrew Murray, U.S. Attorney for the Western District of North Carolina. “This office is dedicated to ensuring that healthcare providers in the Western District make medical decisions that benefit their patients, not the providers’ bottom line.”
The settlement resolves allegations that Genova: (a) improperly submitted claims to Medicare, TRICARE, and the federal employee health program for its IgG allergen, NutrEval and GI Effects lab test profiles because the tests were not medically necessary, (b) engaged in improper billing techniques, and (c) paid compensation to three phlebotomy vendors that violated the physician self-referral prohibition commonly known as the Stark Law. The Stark Law is intended to ensure that physician referrals are determined by the medical needs of patients and not the financial interests of physicians.
Under the settlement, Genova has agreed to pay approximately $17 million, through the surrender of claim funds held in suspension by Medicare and TRICARE, plus up to an additional $26 million if certain financial contingencies occur within the next five years, for a total potential payment of up to $43 million.
Contemporaneous with the civil settlement, Genova entered into a five-year Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that Genova establish and maintain a compliance program with specific requirements and that it engage an independent review organization.
“Labs are expected to bill taxpayer-supported federal health programs for medically necessary services, not pad their bottom lines as alleged by the government in this case,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working with our law enforcement partners to safeguard these vital programs.”
“The results of this investigation highlight another step forward by the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to root out fraud and corruption involving medical professionals who undermine the integrity of the Department of Defense,” said Special Agent in Charge Robert E. Craig Jr., DCIS Mid-Atlantic Field Office. “DCIS will continue to target fraud, waste, and abuse to preserve and recover precious taxpayer dollars for our most vulnerable programs, such as TRICARE."
“The OPM OIG is committed to ensuring the integrity of the Federal Employees Health Benefits Program, which depends upon fair and honest accountings by providers,” said Thomas W. South, Deputy Assistant Inspector General for Investigations, Office of Personnel Management, Office of the Inspector General.
The agreement resolves allegations brought by Darryl Landis under the qui tam, or whistleblower, provisions of the False Claims Act. The False Claims Act permits private citizens to bring a lawsuit on behalf of the United States for fraud and to share in any recovery. The settlement provides for a payment of up to approximately $6 million to Dr. Landis.
This settlement was the result of a coordinated effort by the department’s Civil Division; the U.S. Attorney’s Office for the Western District of North Carolina; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the DCIS; the Defense Health Agency Office of General Counsel, and; the OPM OIG, with assistance from the North Carolina Department of Justice.
The lawsuit resolved by this settlement is captioned United States ex rel. Darryl Landis, M.D. v. Genova Diagnostics, Inc., et al., No. 1:17-cv-341 (W.D.N.C.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Testing Laboratory Agrees to Pay up to $43 Million to Resolve Allegations of Medically Unnecessary TestsRead the Press Release
ASHEVILLE, N.C. – Genova Diagnostics Inc., a clinical laboratory services company based in Asheville, North Carolina, has agreed to pay up to approximately $43 million to resolve allegations that it violated the False Claims Act, including claims that it billed for medically unnecessary lab tests, the Department of Justice and the U.S. Attorney’s Office announced today.
"Government healthcare programs are designed to provide beneficiaries with care that is medically reasonable and necessary,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “Providers of taxpayer-funded federal healthcare services will be held accountable when they knowingly cause false claims to be submitted for services that do not meet this standard of care.”
“The False Claims Act is an important legal tool in our rigorous fight to protect the integrity of our healthcare system from providers like Genova Diagnostics, that bill government programs for non-covered testing to boost profits at the expense of taxpayer dollars,” said Andrew Murray, U.S. Attorney for the Western District of North Carolina. “This office is dedicated to ensuring that healthcare providers in the Western District make medical decisions that benefit their patients, not the providers’ bottom line.”
The settlement resolves allegations that Genova: (a) improperly submitted claims to Medicare, TRICARE, and the federal employee health program for its IgG allergen, NutrEval and GI Effects lab test profiles because the tests were not medically necessary, (b) engaged in improper billing techniques, and (c) paid compensation to three phlebotomy vendors that violated the physician self-referral prohibition commonly known as the Stark Law. The Stark Law is intended to ensure that physician referrals are determined by the medical needs of patients and not the financial interests of physicians.
Under the settlement, Genova has agreed to pay approximately $17 million, through the surrender of claim funds held in suspension by Medicare and TRICARE, plus up to an additional $26 million if certain financial contingencies occur within the next five years, for a total potential payment of up to $43 million.
Contemporaneous with the civil settlement, Genova entered into a five-year Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that Genova establish and maintain a compliance program with specific requirements and that it engage an independent review organization.
“Labs are expected to bill taxpayer-supported federal health programs for medically necessary services, not pad their bottom lines as alleged by the government in this case,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue working with our law enforcement partners to safeguard these vital programs.”
“The results of this investigation highlight another step forward by the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to root out fraud and corruption involving medical professionals who undermine the integrity of the Department of Defense,” said Special Agent in Charge Robert E. Craig Jr., DCIS Mid-Atlantic Field Office. “DCIS will continue to target fraud, waste, and abuse to preserve and recover precious taxpayer dollars for our most vulnerable programs, such as TRICARE."
“The OPM OIG is committed to ensuring the integrity of the Federal Employees Health Benefits Program, which depends upon fair and honest accountings by providers,” said Thomas W. South, Deputy Assistant Inspector General for Investigations, Office of Personnel Management, Office of the Inspector General.
The agreement resolves allegations brought by Darryl Landis under the qui tam, or whistleblower, provisions of the False Claims Act. The False Claims Act permits private citizens to bring a lawsuit on behalf of the United States for fraud and to share in any recovery. The settlement provides for a payment of up to approximately $6 million to Dr. Landis.
This settlement was the result of a coordinated effort by the department’s Civil Division; the U.S. Attorney’s Office for the Western District of North Carolina; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the DCIS; the Defense Health Agency Office of General Counsel, and; the Office of Personnel Management Office of the Inspector General, with assistance from the North Carolina Department of Justice.
The lawsuit resolved by this settlement is captioned United States ex rel. Darryl Landis, M.D. v. Genova Diagnostics, Inc., et al., No. 1:17-cv-341 (W.D.N.C.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Federal Judge Sentences Methamphetamine Trafficker to 15 Years on Drug and Gun ChargesRead the Press Release
ASHEVILLE, N.C. – On Wednesday, April 22, 2020, U.S. District Judge Max O. Cogburn, Jr., sentenced Lonnie Alton Henderson, 47, of Asheville, to 180 months in prison, followed by five years of supervised release, for drug trafficking and firearm offenses, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Joining U.S. Attorney Murray in making today’s announcement are Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in North Carolina, and Sheriff Kevin Frye of the Avery County Sheriff’s Office.
On February 11, 2019, Henderson pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. According to publicly filed court documents, on January 25, 2018, law enforcement with the North Carolina Highway Patrol and the Avery County Sheriff’s office conducted a traffic stop of Henderson’s vehicle in Avery County, North Carolina. Law enforcement recovered from inside the vehicle approximately 102 grams of methamphetamine and a Glock 42 .380 caliber handgun. As reflected in court documents, Henderson admitted he possessed the firearm in furtherance of the drug trafficking offense. Henderson is currently in federal custody.
Henderson’s three co-defendants were previously sentenced by Judge Cogburn. Augustine Manuel Vega, 37, of San Bernardino, Calif. was sentenced to 102 months in prison and five years of supervised release; James Russell, 59, of San Bernardino, was sentenced to 70 months in prison and three years of supervised release; and Robert Preston Clark, 35, of Asheville, was sentenced to 72 months in prison and four years of supervised release.
In making today’s announcement, U.S. Attorney Murray commended HSI’s Henderson County Office and the Avery County Sheriff’s Office for handling the investigation, and thanked the North Carolina Highway Patrol for their invaluable assistance.
Assistant U.S. Attorney Daniel Bradley of the U.S. Attorney’s Office in Asheville prosecuted the case.
Monroe Woman Who Posed as an FBI Agent on Dating Websites Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Riane Leigh Brownlee, 39, of Monroe, N.C., was sentenced to 37 months in prison for impersonating an FBI agent and illegally possessing a firearm. U.S. District Judge Kenneth D. Bell also ordered Brownlee to serve three years under court supervision upon completion of her prison term.
According to filed court documents and today’s sentencing hearing, Brownlee, who is also known as “Raine Leigh Webb,” and “Alexandria Mancini,” posted on dating websites photographs of herself posing with a fake FBI badge and a firearm. On February 23, 2019, Brownlee falsely told an individual with whom she met on a date that she was an FBI agent conducting a counter-drug operation. After Brownlee was arrested later the same day, she falsely told the same individual that she had to keep her identity secret from law enforcement because she was operating undercover. Court records show that, in addition to the fake FBI badge, law enforcement recovered from the stolen vehicle Brownlee was driving a stolen loaded firearm, and a fake FBI ID bearing Brownlee’s photograph and the name “FBI Special Agent Alexandria Mancini.” Brownlee has multiple prior felony convictions, including Identity Theft, Felony Worthless Checks, and Possession of Stolen Motor Vehicle, and she is prohibited from possessing a firearm or ammunition.
Brownlee is currently in federal custody. In making today’s announcement, U.S. Attorney Murray thanked the FBI and Claremont Police Department for their investigation of this case.
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In a separate case, Judge Bell sentenced Curtis Andre Imes, 38, of Statesville, to 54 months in prison, followed by three years of supervised release. According to court records, on May 23, 2019, law enforcement conducted a traffic stop of the vehicle Imes was driving. Imes’ vehicle matched the description of a vehicle involved in an incident earlier in the day, during which the driver had allegedly pointed a firearm at several people gathered near a school. According to court records, when law enforcement pulled over Imes, he attempted to flee on foot but was quickly apprehended. When officers conducted an inventory of Imes’ vehicle, they located a firearm under the driver’s seat, and crack cocaine and marijuana in the center console. Imes has prior felony convictions for Assault with Deadly Weapon Inflicting Serious Injury, Robbery, and Possession of Firearm by Felon, and he is prohibited from possessing a firearm.
Imes will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The Bureau of Alcohol, Tobacco, Firearms and Explosives in coordination with the Statesville Police Department conducted the investigation.
Assistant U.S. Attorney Steven R. Kaufman prosecuted the Brownlee case and represented the Government for the Imes case on behalf of Assistant U.S. Attorney Lambert Guinn, who handled the prosecution.
Avowed Member of White Supremacist Gang Is Sentenced to More Than 13 Years in Federal Prison for Drug TraffickingRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Jonathan Ray Adams a/k/a Jon Boy, 34, of Asheville, was sentenced to 163 months in prison. U.S. District Judge Martin Reidinger also ordered Adams to serve five years under court supervision after he is released from prison.
Joining U.S. Attorney Murray in making today’s announcement are Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in North Carolina; Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Asheville Post of Duty; Sheriff Lowell S. Griffin of the Henderson County Sheriff’s Office; and Chief Shawn Freeman of the Black Mountain Police Department.
According to filed court documents and today’s sentencing hearing, Adams and his co-defendant, Linda Suzanne Higgins, are avowed members of the Aryan Brotherhood, which is a white supremacist gang. Court records show that from at least January 2019 to May 2019, Adams and Higgins trafficked methamphetamine, which they obtained from a source of supply in the Atlanta, Georgia area. The co-defendants then transported the methamphetamine back to Western North Carolina, where they redistributed it to local drug networks in Henderson and Buncombe Counties, including to other members of the Aryan Brotherhood. Over the course of the investigation, federal and local law enforcement working together seized a portion of a 38 ounce shipment of methamphetamine in Buncombe County and a portion of a 10 ounce shipment of methamphetamine in Henderson County.
Adams and Higgins previously pleaded guilty to conspiracy to distribute and to posess with intent to distribute methamphetamine. Higgins is currently awaiting sentencing.
In making today’s announcement, U.S. Attorney Murray commended the Henderson County Sheriff’s Office; the Black Mountain Police Department; HSI’s Henderson County Office; and the DEA’s Asheville Post of Duty for their cooperation and coordination throughout this investigation.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville prosecuted the case.
Gaston County Man Is Charged with Firearms OffenseRead the Press Release
CHARLOTTE, N.C. – A Charlotte federal grand jury has returned a criminal indictment charging Keon Montrese Floyd, 32, of Gastonia, N.C. with possession of a firearm by a felon, announced Andrew Murray U.S. Attorney for the Western District of North Carolina.
According to information contained in the indictment, on or about February 15, 2020, in Gaston County, Floyd, knowing that he had previously been convicted of at least one crime punishable by imprisonment for a term exceeding one year, did knowingly possess a firearm, that is, a Taurus TCP, model PT 738, .380 caliber pistol, in and affecting commerce.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General and implemented by the U.S. Attorney’s Office in the fall of 2019, Project Guardian draws upon past successful federal programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
In making today’s announcement, U.S. Attorney Murray thanked Gaston County District Attorney Locke Bell and Cleveland County District Attorney Mike Miller for their offices’ collaboration with the U.S. Attorney’s Office, to identify state cases such as Floyd’s that can be prosecuted federally.
U.S. Attorney Murray also commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kings Mountain Police Department, and the Gastonia Police Department for their investigation of this case.
Floyd is currently in federal custody. The maximum penalty for the felon in possession of a firearm charge is 10 years in prison.
The charges in the indictment are allegations and the defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
Assistant United States Attorneys William Bozin and Christopher Hess, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
Federal Indictment Charges Four with Conspiracy to Traffic MethamphetamineRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte returned yesterday a criminal indictment charging four individuals with federal charges for their involvement in a drug conspiracy trafficking methamphetamine, announced Andrew Murray U.S. Attorney for the Western District of North Carolina.
The indictment charges Savannah LeeAnn Goins, 19, of Crouse, N.C.; Marlee Dare Griffith, 21, of Cherryville, N.C.; Ryan Andrew Prescott, 21, of Lincolnton, N.C.; and Joseph Michael Vassey, 43, of Enoree, S.C., with conspiracy to traffic methamphetamine and possession with intent to distribute methamphetamine. Griffith, Vassey, and Prescott are facing additional charges for distribution of, and possession with intent to distribute, methamphetamine. Griffith and Goins are also charged with possession of a firearm in furtherance of drug trafficking. A fifth co-conspirator, Dakota Reese Davis, 33, of Lincolnton, pleaded guilty yesterday to drug trafficking conspiracy and possession with intent to distribute methamphetamine.
According to allegations contained in the indictment and related filed criminal complaints, from at least 2019 to February 2020, the defendants were involved in a conspiracy that distributed methamphetamine in and around Gaston, Lincoln, and Cleveland Counties. The indictment alleges that, during the relevant time period, the co-conspirators conducted multiple drug sales. The court documents further allege that law enforcement executed search warrants and seized items incident to arrest that total five firearms, one of which was stolen, ammunition, narcotics, drug paraphernalia, and more than $8,900 in U.S. currency.
The defendants are currently in federal custody. The charges in the indictment are allegations and the defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The drug conspiracy charge carries a mandatory-minimum prison sentence of 10 years and a maximum of life in prison; the possession with intent to distribute methamphetamine charges carry prison terms that range up to 10 years or life in prison; and the charge of possession of a firearm in furtherance of a drug trafficking crime carries a mandatory minimum prison sentence of five years to life, to be served consecutively with any other prison term imposed.
In making today’s announcement, U.S. Attorney Murray thanked the U.S. Drug Enforcement Administration, the U.S. Department of Homeland Security/Homeland Security Investigations, the Huntersville Police Department, the Gastonia Police Department, the Lincoln County Sheriff’s Office, and the Cleveland County Sheriff’s Office for their coordinated investigation of this case.
Assistant United States Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
U.S. Attorney's Office Commemorates National Crime Victims' Rights WeekRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray joins the Department of Justice and communities nationwide in observing National Crime Victims’ Rights Week, celebrating victims’ rights, protections and services throughout the week. This year’s observance takes place April 19-25 and features the theme, “Seek Justice| Ensure Victims' Rights | Inspire Hope.”
“Every year, millions of Americans suffer the shock and trauma of criminal victimization, affecting their well-being and sense of security and dignity,” said Attorney General William P. Barr. “To these victims, we affirm our unwavering commitment to supporting them in their hour of need. We also commend the thousands of victim advocates and public safety professionals who labor tirelessly to secure victims’ rights and support survivors.”
“National Crime Victims’ Rights Week is an opportunity to collectively remember loved ones lost to crime, support crime survivors, and pledge our unwavering commitment to the advancement of victims’ rights,” said U.S. Attorney Andrew Murray. “My office’s Victim Witness Unit works tirelessly to ensure that crime victims and their families have access to the services they are entitled to and need to restore their lives, and to ensure their rights are protected so they can get the justice they deserve.”
“While we have made tremendous progress driving down crime and violence across the country, far too many Americans continue to suffer the pain and loss of criminal victimization,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs. “This week, we stand by these survivors and their families, and we pledge our ongoing support to the countless men and women who serve them with such extraordinary skill and compassion.”
Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs, and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims. President Trump and his administration have implemented historic levels of support for victim assistance and victim compensation.
Some 3.3 million Americans age 12 and older were victims of violent crime in 2018, according to the National Crime Victimization Survey. The Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs, supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.
During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local and tribal agencies traditionally host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services. This year, many communities are organizing virtual gatherings and online public awareness campaigns.
This year’s commemoration began yesterday, 25 years to the day when a truck bomb exploded in front of the Alfred P. Murrah Federal Building in Oklahoma City, Oklahoma, taking the lives of 168 people, including 19 children, as well as injuring hundreds of others. The mass murder remains the worst act of domestic terrorism in our nation’s history and led to the establishment of the Antiterrorism Emergency Reserve, which is administered by OVC, and has been used to provide direct services to hundreds of victims of mass violence and terrorism.
“Crime victims deserve to know that they have the encouragement and support of the American people,” said OVC Director Jessica E. Hart. “I hope that citizens throughout the nation will take the opportunity this week to remember all victims of crime and their heroic stories of survival. I encourage everyone to also find meaningful ways to express their appreciation to the many committed and compassionate service providers across the country who work tirelessly supporting these survivors.”
This year, the annual National Crime Victims’ Service Awards Ceremony will be postponed until a time when we can honor this year’s award recipients in person. During the ceremony, OVC will present awards recognizing individuals and organizations from across the nation for their outstanding service on behalf of crime victims. The awardees will be selected from public nominations in 11 categories, including federal service, special courage, public policy, and victim services. Visit www.ovc.gov/gallery to learn more about past recipients.
For more information on how to create your own public campaigns to raise awareness about crime victims’ rights online and at events throughout the year, please visit: https://ovc.ncjrs.gov/ncvrw2020/overview.html.
Illegal Firearms Dealer Who Used “Glock Switches” to Convert Pistols into Machine Guns Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – U.S. District Robert J. Conrad Jr. sentenced today Charlton Christian Allen, 37, of Monroe, N.C. to 42 months in prison followed by one year of supervised release, for dealing in firearms without a license and possession of a machine gun, announced the U.S. Attorney’s Office for the Western District of North Carolina
According to filed court documents and today’s sentencing hearing, from April 2014 to February 2019, Allen engaged in the business of dealing in firearms without being a licensed firearms dealer. Court records show that over the course of an investigation into a drug trafficking organization (DTO) operating in the greater Charlotte area, law enforcement learned that Allen supplied the DTO with firearms in exchange for drugs and cash.
On May 15, 2019, federal agents arrested Allen at his residence. Inside Allen’s home, they found a Remington shotgun, a homemade firearm, a .22 caliber handgun, a .22 caliber rifle, numerous firearm parts, approximately 2,000 rounds of ammunition, a drill press, and instruction manuals for gun modifications. The agents also seized two Glock conversion devices, commonly known as “Glock switches,” used to illegally convert Glock pistols into machineguns.
On August 16, 2019, Allen pleaded guilty to dealing in firearms without a license and possession of a machine gun. He has been in federal custody since May 2019. Details about the federal prosecution of the DTO members Allen was selling firearms to can be found here.
The ATF and the FBI investigated the case, which is the result of the Organized Crime Drug Enforcement Task Force (OCDETF). 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.
Assistant United States Attorney Erik Lindahl, of the U.S. Attorney’s Office in Charlotte prosecuted the case.
North Carolina Man Is Sentenced to Prison for Violating Federal Sex Offender Registration LawRead the Press Release
STATESVILLE, N.C. – On Thursday, U.S. District Judge Kenneth D. Bell sentenced Gregory Michael Johnson, 37, to 38 months in prison for failure to register as a sex offender, in violation of the federal Sex Offender Registration and Notification Act, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Bell also ordered Johnson to serve 10 years under court supervision after he is released from prison and to register as a sex offender.
The Sex Offender Registration Act, or SORNA, was enacted in 2006, and aimed to strengthen the existing sex offender registration and notification programs, by providing a comprehensive set of minimum standards for sex offender registration and notification in the United States, and by requiring registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
According to filed court documents and statements made in court, on August 2, 2016, Johnson was convicted in Iredell County of Sexual Battery, and, as part of his sentence, he was required to register as a sex offender for 30 years. In 2017, prior to his release from prison, Johnson was informed of his registration obligations under SORNA, and signed requisite forms acknowledging that he understood his sex offender registration requirements in the state of North Carolina. On March 7, 2017, Johnson moved to Tennessee, where again he signed the relevant forms acknowledging he understood the state’s sex offender registration requirements.
Court records show that, on at least three different occasions during the relevant time period, Johnson violated SORNA by failing to register as a sex offender and traveling in interstate commerce. Specifically, Johnson failed to update his sex offender registration each time his residential address changed, and failed to register his place of employment. According to court records, Johnson failed to register or update his sex offender registration between April 27, to July 27, 2017; January 28, to June 2, 2018; and September 17, to September 30, 2018.
At Johnson’s sentencing hearing, the Government argued for and secured an enhanced sentence, noting, among other things, the defendant’s repeated failure to comply with SORNA, and the need to promote respect for the law. The Government also noted that Johnson refused to register properly in either North Carolina or Tennessee, despite living in both states at various times.
On December 2, 2019, Johnson pleaded guilty to three counts of failure to register and update registration as required by SORNA, and traveling in interstate commerce. He has been in federal custody since July 8, 2019.
In making today’s announcement, U.S. Attorney Murray commended the U.S. Marshals Service for their investigation of this case.
Assistant United States Attorney Alfredo De La Rosa prosecuted the case.
Greensboro, N.C. Man Is Sentenced to Prison for Conspiracy to Manufacture Thousands of Dollars in Counterfeit U.S. CurrencyRead the Press Release
STATESVILLE, N.C. – Joseph Haywood Smith, 45, of Greensboro, N.C., was sentenced to 41 months in prison late yesterday, for conspiracy to manufacture more than $7,000 in counterfeit U.S. currency, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also sentenced Smith’s co-defendant, Angela Kristen Shaw, 39, also of Greensboro, to time served, and ordered both defendants to serve two years of supervised release.
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.
According to filed court documents and today’s sentencing hearing, from February 2019 to March 2019, Smith and Shaw manufactured counterfeit U.S. currency, which they then used to purchase goods at various retail stores in the greater Statesville area. According to court records, the defendants purchased art supplies, and used them to manufacture more than 335 counterfeit $20 bills, and more than 63 counterfeit $10 bills. Court records show that during the relevant time period, the defendants used, or attempted to use, the counterfeit currency to buy merchandise at various retail stores, including at Burger King, CVS, and Dollar General located in Statesville, and elsewhere.
In pronouncing the sentence, Judge Bell noted that “counterfeiting is extremely serious,” and called Smith, who has a significant criminal history, a “career lifetime thief.”
In making today’s announcement, U.S. Attorney Murray thanked the U.S. Secret Service for their investigation of this case.
Assistant U.S. Attorney Jenny G. Sugar, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
U.S. Attorney's Office and IRS Caution the Public About Scammers Targeting Economic Relief PaymentsRead the Press Release
CHARLOTTE, NC – Watch out for scammers attempting to steal your COVID-19 (the Coronavirus) Economic Impact Payments, is the warring issued today by U.S. Attorney Andrew Murray and Matthew D. Line, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Division (IRS-CI) in Charlotte.
“We continue to warn the public about scammers taking advantage of the Coronavirus crisis to line their own pockets. With economic relief payments soon on the way, scammers will get even more aggressive and more creative to get their hands on your money. Remain vigilant and warn your friends and family about COVID-19 scams. Also, do your part in helping us catch scammers and report suspected fraud,” said U.S. Attorney Murray.
“I urge the public not to fall victim to fraudsters attempting to steal Economic Impact Payments being sent out. The IRS will not call, text, email or otherwise contact you to ask for your information. This money is meant for you. Don’t fall victim to scammers,” said Matthew D. Line, Special Agent in Charge, IRS-CI, Charlotte Field Office.
The Treasury Department and the IRS announced that distribution of Economic Impact Payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. Information from 2018 or 2019 tax return, if filed, will be used to calculate payment. Most individuals do not need to take any action. The IRS will calculate and automatically send payment to those eligible.
The IRS will deposit the economic relief check into the direct deposit account previously provided in your tax returns. If banking information was not provided, the IRS will send you a check via mail. The IRS will NOT contact you to request your banking info, will not ask you to confirm personal information to send or expedite your economic impact payment, or require you to pay a fee.
If you receive a call claiming to be from the IRS or any entity related to the Economic Impact Payment, do not engage scammers or thieves. Do not give out your bank account, debit account or PayPal account information, even if someone claims it is necessary to get your check. It’s a scam!
It will take a few weeks before the Treasury mails out the Economic Impact Payments. If you receive a “check” for an odd amount or a check that requires you to verify the check online or by calling a number, it is a fraud. Also, be vigilant about collecting your mail soon after it is delivered, to prevent the theft of economic relief checks arriving in your mailbox.
Don’t be a victim! Education is the best way to avoid being defrauded by scammers. Visit www.irs.gov for the latest information on new scams and schemes. To find out more about Department of Justice resources and information, please visit www.justice.gov/coronavirus.
To report suspected fraud the Justice Department urges you to call the National Center for Disaster Fraud Hotline by calling 866-720-5721 or sending an email to [email protected].
North Carolina Nail Salon Owner Charged with Forced Labor of an EmployeeRead the Press Release
Defendant Thuy Tien Luong, 36, was charged on March 3, 2020, in an indictment with one count of forced labor, announced Assistant Attorney General Eric Dreiband for Civil Rights and U.S. Attorney R. Andrew Murray for the Western District of North Carolina.
According to the allegations set forth in the indictment, between late 2017 and June 26, 2018, the defendant forced the victim, whom she employed as a nail technician, to provide labor and services at her salon by means of force and threats of force to the victim. The indictment further alleges that the defendant obtained the victim’s services through means of serious harm and threats of serious harm, means of abuse and threatened abuse of law and legal process, and by means of a scheme, plan and pattern to cause the victim to believe that if she did not perform such labor and services, she would suffer serious harm.
“Human trafficking is our generation’s form of physical and psychological captivity. It is modern day slavery. These vile acts involve fundamental violations of our rights and the perpetrators must be stopped,” said Eric Dreiband, Assistant Attorney General for Civil Rights.
“Forced labor deprives victims their basic human rights and strips away their dignity. Labor trafficking schemes are deplorable and do not have place in modern society. My office remains committed to combatting all forms of human trafficking and holding perpetrators accountable for their criminal actions,” said U.S. Attorney Murray.
“Traffickers treat human beings as commodities. They use force, fraud or coercion to prey on people’s vulnerabilities,” said Homeland Security Investigations (HSI) Charlotte Special Agent in Charge Ronnie Martinez. “HSI special agents will continue to focus their efforts on eradicating this heinous crime; no one should be subject to human trafficking.”
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. If convicted of forced labor, the defendant faces a sentence of up to 20 years in prison, as well a mandatory restitution.
The case is being investigated by the Department of Homeland Security, Homeland Security Investigations with assistance from the Davidson Police Department and Charlotte-Mecklenburg Police Department. It is being prosecuted by Assistant U.S. Attorney Kimlani M. Ford for the Western District of North Carolina and Trial Attorney Maryam Zhuravitsky for the Civil Rights Division’s Human Trafficking Prosecution Unit.
Hayesville, N.C. Man Is Sentenced to More Than 21 Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced Bobby Roger Burch, 48, of Hayesville, N.C. today to 262 months in prison, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also ordered Burch to serve five years under court supervision upon completion of his prison sentence.
According to filed court documents and today’s sentencing hearing, Burch was part of a drug conspiracy operating in North Carolina and Georgia, that distributed significant quantities of methamphetamine in and around Clay County and elswhere. Court records show that Burch was the North Carolina-based source of supply for the drug ring. Court records also show that, over the course of the investigation, law enforcement conducted controlled buys and seized significant quantities of methamphetamine from the drug conspiracy. According to court records, law enforcement seized from Burch more than three pounds of methamphetamine, which Burch was transporting from Georgia to North Carolina. In addition to the narcotics, law enforcement seized 39 firearms from Burch’s residence, including an assault rifle. As reflected in court documents, Burch obstructed or attempted to impede the administration of justice by threatening and intimidating some of his co-conspirators whom he suspected were cooperating with law enforcement.
In making today’s announcement, U.S. Attorney Murray said, “The arrest and prosecution of Burch and several of his co-conspirators has positively impacted Clay County and the surrounding areas in North Carolina, which have seen a significant drop in criminal activity following the successful dismantling of this multi-state drug trafficking ring. Working with our law enforcement partners, we will continue to identify, investigate, and prosecute drug trafficking organizations that plague our communities with deadly drugs and drug-fueled crimes.”
“The cocktail of deadly chemicals used to manufacture methamphetamine are a recipe for disaster. These substances are not only volatile and toxic, but they also destroy families, communities and lives. Because of the collective effort between DEA and its local, state and federal law enforcement counterparts and the U.S. Attorney’s Office, this defendant was brought to justice and will spend well-deserved time in prison,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division.
U.S. Attorney Murray thanked the DEA’s Asheville Post of Duty; the Clay County Sheriff’s Office; the Georgia Bureau of Investigation; the Swain County Sheriff’s Office; the Macon County Sheriff’s Office; the Highlands Police Department; and the North Carolina State Bureau of Investigation for handling the investigation.
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In a separate case, Judge Reidinger also sentenced James Kevin Jones, 45, of Candler, N.C. to 188 months in prison followed by four years of supervised release. According to court documents and today’s sentencing hearing, investigators made three controlled buys of methamphetamine from Jones and seized methamphetamine and a loaded firearm from Jones’ residence in Candler during the course of the investigation.
Court documents show that law enforcement also seized an additional quantity of methamphetamine that Jones concealed on his body while in the Buncombe County Detention Center. According to court records and statements made in court today, Jones has multiple prior felony convictions, and committed crimes while he was on state probation for those convictions.
Jones’ investigation was handled by the Buncombe County Anti-Crime Task Force and the Buncombe County Sheriff’s Office.
Both defendants are in custody, and upon designation of a federal facility they will be transferred to the custody of the Federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, prosecuted both cases.
U.S. Attorney Andrew Murray Urges the Public to Report Suspected COVID-19 FraudRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray of the District of North Carolina today urged the public to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address [email protected].
In coordination with the Department of Justice, Attorney General William Barr has directed U.S. Attorneys to prioritize the investigation and prosecution of Coronavirus fraud schemes.
“It is utterly despicable that scammers will try to profit from the COVID-19 national crisis, but fraudsters will stop at nothing to make a buck! I strongly encourage everyone to be on heightened alert about potential scams related to COVID-19, and to report the fraud to the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or e-mail NCDF at [email protected]. Reporting scams will help us investigate and prosecute wrongdoers, and track scams so we can warn the public about emerging schemes.”
Some examples of these schemes include:
- Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
- Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
- Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to your devices until payment is received.
- Seeking donations fraudulently for illegitimate or non-existent charitable organizations.
- Medical providers obtaining patient information for COVID-19 testing and then using that information to fraudulently bill for other tests and procedures.
In a memorandum to U.S. Attorneys issued March 19, Deputy Attorney General Jeffrey Rosen also directed each U.S. Attorney to appoint a Coronavirus Fraud Coordinator to serve as the legal counsel for the federal judicial district on matters relating to the Coronavirus, direct the prosecution of Coronavirus-related crimes, and to conduct outreach and awareness activities.
The Coronavirus Fraud Coordinator for the Western District of North Carolina is Assistant U.S. Attorney (AUSA) Jenny Sugar. AUSA Sugar is an experienced prosecutor, and currently serves as Deputy Chief overseeing the district’s White Collar Fraud Unit.
The NCDF can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components to identify, investigate and prosecute fraud schemes. The NCDF coordinates complaints with 16 additional federal law enforcement agencies, as well as state Attorneys General and local authorities.
is the best way to avoid being defrauded by scammers. To find out more about Department of Justice resources and information, please visit www.justice.gov/coronavirus.
Here are some helpful tips to avoid COVID-19 scams:
- Do not purchase items that purport to cure COVID-19. Currently there are no vaccines, pills, drinks, lotions or any other product available on the market that can treat or cure COVID-19.
- Do not click on links or reply to texts from unknown sources as they may download malware and viruses to computers or devices.
- Instead of clicking on emails claiming to be from the CDC or WHO, go directly to websites for the Centers for Disease Control and Prevention (www.cdc.gov) and the World Health Organization (www.who.int) to obtain information.
- When it comes to donations, do not let a scammer rush you into making a donation. Instead, take the time to do extensive research online.
- Do not make a donation in cash, via gift card, or a wire transfer, and do not provide your banking information or debit card numbers.
Stay alert. Protect yourself from scams and report the fraud. Call the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or e-mail NCDF at [email protected].
U.S. Attorney Andrew Murray Issues Warning for COVID-19 ScamsRead the Press Release
CHARLOTTE, NC – Today, U.S. Attorney Andrew Murray and the FBI issued a warning, urging the public to remain vigilant against COVID-19 scams.
“I encourage everyone to be on heightened alert about potential scams related to COVID-19,” said U.S. Attorney Murray. “At the request of the United States Attorney General, I have directed federal prosecutors in my office to prioritize the detection, investigation and prosecution of criminal conduct related to COVID-19. We will not allow scammers to profit from this outbreak.”
Possible types of COVID-19 scams are:
- Individuals or businesses selling fake cures for COVID-19.
- Online offers for vaccinations and test kits.
- Phishing emails or texts from entities posing as the World Health Organization (WHO) or the Centers for Disease Control and Prevention (CDC).
- Malware inserted in mobile apps designed to track the spread of COVID-19 that can steal information stored on devices.
- Malicious COVID-19 websites and apps that can gain and lock access to devices until a ransom payment is made.
- Solicitations for donations to fake charities or crowdfunding sites.
Here are some tips to help avoid COVID-19 scams:
- Do not purchase items that purport to cure COVID-19. Currently there are no vaccines, pills, drinks, lotions or any other product available on the market that can treat or cure COVID-19.
- Do not purchase COVID-19 test kits on line.
- Do not click on links or reply to texts from unknown sources as these may download malware and viruses to computers or devices.
- Be particularly aware of emails claiming to be from the CDC or WHO, claiming to have vital information about the virus. Instead, go directly to websites for the Centers for Disease Control and Prevention (www.cdc.gov) and the World Health Organization (www.who.int).
- When it comes to donations, do not let a scammer rush you into making a donation. Instead, take the time to do extensive research online.
- Do not make a donation in cash, via gift card, or a wire transfer, and do not provide your banking information or debit card numbers.
Education is the best way to avoid being defrauded by scammers. To learn more about COVID-19 scams and for help with recognizing and avoiding fraud schemes please visit the Federal Trade Commission website. Report suspected fraud to the FBI at www.ic3.gov.
Huntersville, N.C. Man Faces Federal "Dark Net” Drug ChargesRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has returned an indictment against Anthony Blane Byrnes, 19, of Huntersville, N.C., charging him with drug conspiracy and related drug charges for trafficking narcotics he purchased on the dark web, with coordination through Bitcoin ATMs, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
According to allegations contained in the indictment and a previously-filed criminal complaint, in August 2019, law enforcement intercepted a mail parcel containing suspected narcotics. The parcel was allegedly mailed from Slovenia and addressed to Byrnes. On or about August 7, 2019, law enforcement conducted a controlled delivery of the suspected parcel at Byrnes’ residence. As alleged in court documents, law enforcement observed Byrnes picking up the parcel and retreating to his residence. Subsequently, law enforcement executed a search warrant at Byrnes’ residence and seized numerous narcotics and contraband, including LSD, MDMA/Ecstasy, marijuana, other narcotics and drug paraphernalia. Law enforcement also recovered two firearms from his residence. The indictment also alleges a previous infraction in April 2019, wherein law enforcement recovered additional narcotics and a firearm. In total, three firearms and approximately $13,800 in cash were recovered from Byrnes’ residence in this investigation.
According to allegations contained in court documents, Byrnes bought the narcotics via the Dark Net Marketplace (DNM) “Empire Market,” and used Bitcoin to pay for the drugs. Court documents further allege that Byrnes used multiple Bitcoin ATM machines in Charlotte to make numerous drug transactions.
Byrnes is currently in federal custody. He is charged with drug trafficking conspiracy, which carries a mandatory minimum sentence of 10 years to life in prison; possession with intent to distribute LSD, which carries a mandatory minimum sentence of 10 years to life in prison; possession with intent to distribute Psilocin, which carries a maximum prison sentence of 20 years; possession with intent to distribute DMT, which carries a maximum prison sentence of 20 years; possession with intent to distribute marijuana, which carries a maximum prison sentence of five years; and two counts of possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory minimum prison sentence of five years to life, to be served consecutive to other imposed charges, per count.
The charges in the indictment are allegations. The defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney 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 Police Department for their invaluable assistance.
Assistant United States Attorney Sanjeev Bhasker, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Hayesville, N.C. Man Is Sentenced to More Than 11 Years in Federal Prison for Drug TraffickingRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced Eugene “Bo” Mashburn, 58, of Hayesville, N.C. today to 135 months in prison, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also ordered Mashburn to serve five years under court supervision upon completion of his prison sentence.
According to filed court documents and today’s sentencing hearing, Mashburn conspired with other drug traffickers in North Carolina and Georgia to distribute significant quantities of methamphetamine. According to court records, over the course of the investigation, law enforcement conducted two controlled buys of methamphetamine from Mashburn and seized methamphetamine, 24 firearms and two silencers from Mashburn’s residence.
In making the announcement, U.S. Attorney Murray thanked the DEA’s Asheville Post of Duty; the Clay County Sheriff’s Office; the Georgia Bureau of Investigation; the Swain County Sheriff’s Office; the Macon County Sheriff’s Office; the Highlands Police Department; and the North Carolina State Bureau of Investigation for handling the investigation.
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In a separate case, Judge Reidinger also sentenced today Jeremy Daniel Bowen, 44, of Maggie Valley, N.C. to 210 months in prison followed by five years of supervised release. According to court documents and today’s sentencing hearing, law enforcement became aware that Bowen, who has a prior murder conviction, was operating a methamphetamine lab out of his residence in Maggie Valley. Court records show that law enforcement seized processed methamphetamine from the residence as well as a loaded firearm.
Bowen’s investigation was handled by the DEA’s Asheville Post of Duty and the Maggie Valley Police Department.
Both defendants are in custody, and upon designation of a federal facility they will be transferred to the custody of the Federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, prosecuted both cases.
Federal Judge Sentences Whittier, N.C. Man to 46 Months for Assaulting Tribal ElderRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced Jonathan David Taylor today to 46 months in prison and three years of supervised release, for the May 2019 assault of a tribal elder, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Taylor, 33, of Whittier, N.C., pleaded guilty on October 23, 2019, to assault with a dangerous weapon with intent to do bodily harm.
Chief Doug Pheasant of the Cherokee Indian Police Department joins U.S. Attorney Murray in making todays’ announcement.
According to filed court documents and today’s sentencing hearing, on May 8, 2019, Taylor used a metal pipe to strike a 71-year-old male victim in the forehead, inflicting serious injury. Court records show that Taylor assaulted the victim when the victim attempted to prevent Taylor from physically assaulting Taylor’s then-girlfriend. Court records also show that Taylor caused the victim to sustain a large jagged laceration on the top of his head that required medical attention. Both Taylor and the victim are enrolled members of the Eastern Band of Cherokee Indians.
Taylor is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
U.S. Attorney Andrew Murray thanked CIPD for their investigation of the case. Assistant United States Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Armored Truck Guard Is Charged for Stealing $325,000Read the Press Release
CHARLOTTE, N.C. – A federal grand jury has returned a criminal indictment charging Shomarley Lockhard Hodge, 33, of Charlotte, with embezzlement, bank larceny, and transactional money laundering for stealing $325,000 in cash intended to restock bank ATMs, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Hodge turned himself in to FBI agents this morning.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the indictment, in December 2019, Hodge began working as an armed guard for an armored truck company identified in the indictment as “Company L.” In that capacity, the indictment alleges, Hodge was responsible for the safe delivery of cash entrusted to Company L’s custody on behalf of a bank, to the bank’s branches and ATMs in the Charlotte area.
According to allegations in the indictment, on or about January 30, 2020, Hodge abused his position of trust and stole approximately $325,000 from the armored truck, which was supposed to be delivered to several bank ATMs. As alleged in the indictment, the following day, on January 31, 2020, and continuing through on or about February 6, 2020, Hodge began making large cash deposits into the bank account of an acquaintance. During the relevant time period, Hodge made more than 95 such cash deposits, totaling at least $139,000. Hodge also used some of the money to pay for personal expenses, and to make a $40,000 down payment on a 2020 BMW x7 vehicle, with a purchase price of more than $118,000.
Hodge had his initial appearance this morning before U. S. Magistrate Judge David C. Keesler. The embezzlement charge carries a maximum penalty of 30 years in prison and a $1 million fine. The bank larceny charge carries a maximum penalty of 10 years in prison and a $250,000 fine. The maximum penalty for transactional money laundering is 10 years in prison and a $250,000 fine.
The charges in the indictment are allegations. The defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
The FBI in Charlotte investigated the case. Assistant United States Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
DEA-Led Operation Nets More Than 600 Arrests Targeting Cartel Jalisco Nueva GeneracionRead the Press Release
CHARLOTTE, N.C. – The Justice Department and the Drug Enforcement Administration (DEA) today announced the results of Project Python, a DEA-led interagency operation encompassing all global investigations and related disruption activities targeting the Cártel de Jalisco Nueva Generación (CJNG).
This announcement marks the successful conclusion of six months of investigative and enforcement activity targeting CJNG, culminating in large scale arrests throughout the country within the past week. Project Python has resulted more than 600 arrests, 350 indictments, as well as significant seizures of money and drugs.
In 2020, within Western North Carolina, six defendants have been prosecuted to date, in connection with the initiative:
- Jose Velasquez, 35, a Mexican national residing in Charlotte, N.C., has been charged with drug trafficking conspiracy; international money laundering; possession with intent to distribute heroin; possession with intent to distribute methamphetamine; and possession with intent to distribute cocaine.
- Johnny Michael Boone, Jr., 33, of Bessemer City, N.C., has been charged with possession with intent to distribute methamphetamine.
- Jose Rigoberto Rodriquez-Rangel, 21, of Durham, N.C., has pleaded guilty to drug trafficking conspiracy; money laundering conspiracy; and possession with intent to distribute heroin. He is currently awaiting sentencing.
- Jose Dolorez Martinez-Martines, 32, a Mexican national residing in Durham, N.C., has pleaded guilty to drug trafficking conspiracy, money laundering conspiracy; and possession with intent to distribute heroin. He is currently awaiting sentencing.
- Oscar Bello-Lopez, 33, a Mexican national residing in Charlotte, has been sentenced to 188 months in prison and five years of supervised release, for drug trafficking conspiracy; money laundering conspiracy; possession with intent to distribute heroin; possession of a firearm by a felon; illegal reentry by a felon.
- Otequise Lenard Miller, 34, of Concord, N.C., has been sentenced to 240 months in prison and five years of supervised release for drug trafficking conspiracy resulting in death; money laundering conspiracy; distribution and possession with intent to distribute methamphetamine.
“Project Python marks the most comprehensive action to date in the Department of Justice’s campaign to disrupt, dismantle, and ultimately destroy CJNG,” said Assistant Attorney General Brian A. Benczkowski of the Criminal Division. “When President Trump signed an Executive Order prioritizing the dismantlement of transnational criminal organizations, the Department of Justice answered the call and took direct aim at CJNG. We deemed CJNG one of the highest-priority transnational organized crime threats we face. And with Project Python, we are delivering results in the face of that threat for the American people.”
“Project Python is the single largest strike by U.S. authorities against CJNG, and this is just the beginning,” said Acting Administrator Uttam Dhillon. “This strategic and coordinated project exemplifies DEA’s mission: to disrupt, dismantle, and destroy drug trafficking organizations around the world and bring their leaders to justice. Today, DEA has disrupted CJNG’s operations, and there is more to come as DEA continues its relentless attack on this remorseless criminal organization.”
“This ruthless Mexican cartel has evolved into a powerful drug syndicate that floods urban and rural communities in the Western District and throughout our nation with enormous quantities of powerful narcotics. My office and our law enforcement partners remain committed to bringing members of this drug trafficking organization to justice, and disrupting CJNG’s drug trafficking networks in Western North Carolina,” said U.S. Attorney Andrew Murray.
“This DEA-led multilateral and interagency operation resulted in a well-planned and coordinated assault against CJNG, which is one of the most prolific producers of methamphetamine in the world. CJNG is responsible for an enormous quantity of dangerous drugs destined for the U.S. and much of the violence in Mexico today. This strategic strike against this Mexico-based cartel is just the beginning of an all-out assault against this ruthless organization,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division.
The Justice Department and its law enforcement partners are committed to fulfilling the President’s Executive Order 13773 to identify, interdict, disrupt and dismantle transnational criminal organizations. The department designated CNJG as one of the top transnational criminal groups targeted as part of carrying out this executive order, and DEA instituted Project Python to support this ongoing effort.
CJNG is one of the fastest growing transnational criminal organizations in Mexico, and among the most prolific methamphetamine producers in the world. It is responsible for a significant proportion of drugs entering the United States, and elevated levels of violence in Mexico. With methamphetamine abuse and overdose deaths on the rise, Project Python aims to disrupt CJNG’s ability to distribute methamphetamine and other drugs throughout the United States by attacking the group at all levels.
Federal law enforcement has taken a number of steps to degrade CJNG’s ability to operate in the United States. Today, the Justice Department and DEA announced a superseding indictment on charges of alleged continuing criminal enterprise against Nemesio Ruben Oseguera Cervantes, also known as “El Mencho,” the undisputed leader of CJNG. Last month, El Mencho’s son, Ruben Oseguera Gonzalez, also known as “Menchito,” and second in command of CJNG, was extradited from Mexico to the United States on charges of alleged drug trafficking and firearm use in relation to drug trafficking activities. On Feb. 26, 2020, El Mencho’s daughter, Jessica Johanna Oseguera Gonzalez, was arrested in the United States on financial charges related to her alleged criminal violation of the Foreign Narcotics Kingpin Designation Act.
Additionally, DEA has worked with its interagency partners to apply further pressure to CJNG. The U.S. Department of Treasury has designated El Mencho as a “specially designated narcotics trafficker” pursuant to the Foreign Narcotics Kingpin Designation Act, and the U.S. Department of State has issued one of the largest narcotics rewards ever – $10 million – for information leading to the arrest of El Mencho.
The efforts highlighted in the more than 600 arrests nationwide are illustrative of the significant reach the CJNG has in manufacturing, importing and distributing a wide array of illegal narcotics within the United States and the negative impact on the fabric of our local communities. The proceeds from the local distribution of these narcotics are repatriated back to Mexico and further fuel transnational organized criminal organizations such as the CJNG. The Department of Justice and its law enforcement partners will continue to vigorously fight this scourge against the United States.
The Department of Justice’s multi-agency Special Operations Division, federal prosecutors from the Narcotic and Dangerous Drug Section of the Department’s Criminal Division, the Criminal Division’s Office of International Affairs and Office of Enforcement Operations provided invaluable support to this operation.
In Western North Carolina, U.S. Attorney Murray thanked the DEA in Charlotte, ICE’s Homeland Security Investigations, the Gastonia Police Department, the Gaston County Police Department, and the Charlotte-Mecklenburg Police Department for their investigation of the cases, which are being prosecuted by Assistant U.S. Attorney Sanjeev Bhasker, of the U.S. Attorney’s Office in Charlotte.
The cases in Western North Carolina are the result of the Organized Crime Drug Enforcement Task Force (OCDETF). 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.
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 Jury Convicts Founder and Chairman of a Multinational Investment Company and a Company Consultant of Public Corruption and Bribery ChargesRead the Press Release
A federal jury sitting in Charlotte, North Carolina, has convicted the founder and chairman of a multinational investment company and a company consultant of public corruption and bribery charges, for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions.
Greg E. Lindberg, 49, of Durham, North Carolina, the founder and chairman of Eli Global LLC (Eli Global) and the owner of Global Bankers Insurance Group (GBIG), and Lindberg’s consultant, John D. Gray, 69, of Chapel Hill, North Carolina, were convicted of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds after an approximately three-week trial before U.S. District Judge Max O. Cogburn Jr. A third co-defendant, Eli Global executive John V. Palermo, 64, of Pittsboro, North Carolina, was acquitted by the jury. A fourth co-defendant, Robert Cannon Hayes, 74, of Concord, North Carolina, previously pleaded guilty to making false statements to the FBI.
“Greg Lindberg and John Gray undermined public confidence in our government by promising millions of dollars in campaign contributions in exchange for government decisions to benefit Lindberg’s business interests,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The department is grateful for the assistance of the law-abiding public officials who reported the attempted bribes in this case, which allowed us to use all the tools at our disposal to investigate and root out this pernicious and greedy effort to corrupt North Carolina state government.”
“The defendants devised an elaborate plan to make a hefty campaign contribution to an elected official to secure favorable action. This was not a lapse in judgment. It was a deliberate bribery attempt and a clear violation of federal law,” said U.S. Attorney Andrew Murray for the Western District of North Carolina. “Public corruption is a threat to our way of life and if left unchecked it can tear apart the very fabric of our country. My office will continue to diligently ferret out public corruption schemes to protect the public and hold bad actors like these unscrupulous defendants accountable.”
“Greg Lindberg and John Gray plowed across the line from legal political donations to felonious bribery,” said Special Agent in Charge John Strong of the FBI’s Charlotte Field Office. “These men thought they could buy changes to North Carolina Department of Insurance personnel, policies, and procedures to benefit Lindberg's businesses. The FBI will work tirelessly to root out any and all forms of public corruption.”
According to filed court documents, witness testimony and evidence presented at trial, in January 2018, the elected Commissioner of Insurance (Commissioner) of the North Carolina Department of Insurance (NCDOI) reported concerns to the FBI about political contributions and other requests made by Lindberg and Gray, and agreed to cooperate with the federal investigation that was initiated.
The evidence established that from April 2017 to August 2018, Lindberg, Gray and Hayes engaged in a bribery scheme involving independent expenditure accounts and improper campaign contributions for the purpose of causing the Commissioner to take official action favorable to Lindberg’s company, GBIG. Trial evidence further established that Lindberg and Gray gave, offered, and promised the Commissioner millions of dollars in campaign contributions and other things of value, in exchange for the removal of NCDOI’s Senior Deputy Commissioner, who was responsible for overseeing regulation and the periodic examination of GBIG.
According to trial evidence, Lindberg, Gray and the Commissioner held numerous in-person meetings at different locations, including in Statesville, North Carolina, and had telephonic and other communications with each other, and with Hayes, to discuss Lindberg’s request for the personnel change in exchange for millions of dollars, and to devise a plan on how to funnel campaign contributions to the Commissioner anonymously. In order to conceal the bribery scheme, at the direction of Lindberg, two corporate entities were set-up to form an independent expenditure committee with the purpose of supporting the Commissioner’s re-election campaign, and Lindberg funded the entities with $1.5 million as promised to the Commissioner. In addition, at Lindberg and Gray’s direction, Hayes caused the transfer of $250,000 from monies Lindberg had previously contributed to a North Carolina state party of which Hayes was chairman, to the Commissioner’s re-election campaign.
According to admissions Hayes made in connection with his guilty plea, on or about Aug. 28, 2018, Hayes falsely stated to FBI agents that he had never spoken with the NCDOI Commissioner about personnel or personnel problems at NCDOI, or about Lindberg or Gray. Hayes further admitted that, at the time he made the materially false statements, Hayes knew that it was unlawful to lie to the FBI, and knew that his statements were false because Hayes had in fact spoken with the NCDOI Commissioner about Lindberg and Gray, and about Lindberg’s request that the Commissioner move certain personnel within NCDOI.
The FBI’s Charlotte field office investigated the case.
Trial Attorney James C. Mann of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys William Stetzer and Dana Washington of the U.S. Attorney’s Office for the Western District of North Carolina are in charge of the prosecution.
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 Jury Convicts Founder and Chairman of A Multinational Investment Company and A Company Consultant of Public Corruption and Bribery ChargesRead the Press Release
CHARLOTTE, N.C. – A federal jury sitting in Charlotte, North Carolina, has convicted the founder and chairman of a multinational investment company and a company consultant of public corruption and bribery charges, for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions.
Greg E. Lindberg, 49, of Durham, North Carolina, the founder and chairman of Eli Global LLC (Eli Global) and the owner of Global Bankers Insurance Group (GBIG), and Lindberg’s consultant, John D. Gray, 69, of Chapel Hill, North Carolina, were convicted of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds after an approximately three-week trial before U.S. District Judge Max O. Cogburn Jr. A third co-defendant, Eli Global executive John V. Palermo, 64, of Pittsboro, North Carolina, was acquitted by the jury. A fourth co-defendant, Robert Cannon Hayes, 74, of Concord, North Carolina, previously pleaded guilty to making false statements to the FBI.
“Greg Lindberg and John Gray undermined public confidence in our government by promising millions of dollars in campaign contributions in exchange for government decisions to benefit Lindberg’s business interests,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department is grateful for the assistance of the law-abiding public officials who reported the attempted bribes in this case, which allowed us to use all the tools at our disposal to investigate and root out this pernicious and greedy effort to corrupt North Carolina state government.”
“The defendants devised an elaborate plan to make a hefty campaign contribution to an elected official to secure favorable action. This was not a lapse in judgment. It was a deliberate bribery attempt and a clear violation of federal law,” said U.S. Attorney Andrew Murray for the Western District of North Carolina. “Public corruption is a threat to our way of life and if left unchecked it can tear apart the very fabric of our country. My office will continue to diligently ferret out public corruption schemes to protect the public and hold bad actors like these unscrupulous defendants accountable.”
“Greg Lindberg and John Gray plowed across the line from legal political donations to felonious bribery,” said Special Agent in Charge John Strong of the FBI’s Charlotte Field Office. “These men thought they could buy changes to North Carolina Department of Insurance personnel, policies, and procedures to benefit Lindberg's businesses. The FBI will work tirelessly to root out any and all forms of public corruption.”
According to filed court documents, witness testimony and evidence presented at trial, in January 2018, the elected Commissioner of Insurance (Commissioner) of the North Carolina Department of Insurance (NCDOI) reported concerns to the FBI about political contributions and other requests made by Lindberg and Gray, and agreed to cooperate with the federal investigation that was initiated.
The evidence established that from April 2017 to August 2018, Lindberg, Gray and Hayes engaged in a bribery scheme involving independent expenditure accounts and improper campaign contributions for the purpose of causing the Commissioner to take official action favorable to Lindberg’s company, GBIG. Trial evidence further established that Lindberg and Gray gave, offered, and promised the Commissioner millions of dollars in campaign contributions and other things of value, in exchange for the removal of NCDOI’s Senior Deputy Commissioner, who was responsible for overseeing regulation and the periodic examination of GBIG.
According to trial evidence, Lindberg, Gray and the Commissioner held numerous in-person meetings at different locations, including in Statesville, North Carolina, and had telephonic and other communications with each other, and with Hayes, to discuss Lindberg’s request for the personnel change in exchange for millions of dollars, and to devise a plan on how to funnel campaign contributions to the Commissioner anonymously. In order to conceal the bribery scheme, at the direction of Lindberg, two corporate entities were set-up to form an independent expenditure committee with the purpose of supporting the Commissioner’s re-election campaign, and Lindberg funded the entities with $1.5 million as promised to the Commissioner. In addition, at Lindberg and Gray’s direction, Hayes caused the transfer of $250,000 from monies Lindberg had previously contributed to a North Carolina state party of which Hayes was chairman, to the Commissioner’s re-election campaign.
According to admissions Hayes made in connection with his guilty plea, on or about Aug. 28, 2018, Hayes falsely stated to FBI agents that he had never spoken with the NCDOI Commissioner about personnel or personnel problems at NCDOI, or about Lindberg or Gray. Hayes further admitted that, at the time he made the materially false statements, Hayes knew that it was unlawful to lie to the FBI, and knew that his statements were false because Hayes had in fact spoken with the NCDOI Commissioner about Lindberg and Gray, and about Lindberg’s request that the Commissioner move certain personnel within NCDOI.
The FBI’s Charlotte field office investigated the case.
Trial Attorney James C. Mann of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys William Stetzer and Dana Washington of the U.S. Attorney’s Office for the Western District of North Carolina are in charge of the prosecution.
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.
North Carolina Nail Salon Owner Charged with Forced Labor of an EmployeeRead the Press Release
CHARLOTTE, N.C. –Thuy Tien Luong, 36, was charged on March 3, 2020, in an indictment with one count of forced labor, announced Assistant Attorney General Eric Dreiband for Civil Rights and U.S. Attorney R. Andrew Murray for the Western District of North Carolina.
According to the allegations set forth in the indictment, between late 2017 and June 26, 2018, the defendant forced the victim, whom she employed as a nail technician, to provide labor and services at her salon by means of force and threats of force to the victim. The indictment further alleges that the defendant obtained the victim’s services through means of serious harm and threats of serious harm, means of abuse and threatened abuse of law and legal process, and by means of a scheme, plan and pattern to cause the victim to believe that if she did not perform such labor and services, she would suffer serious harm.
“Human trafficking is our generation’s form of physical and psychological captivity. It is modern day slavery. These vile acts involve fundamental violations of our rights and the perpetrators must be stopped,” said Eric Dreiband, Assistant Attorney General for Civil Rights.
“Forced labor deprives victims their basic human rights and strips away their dignity. Labor trafficking schemes are deplorable and do not have place in modern society. My Office remains committed to combatting all forms of human trafficking and holding perpetrators accountable for their criminal actions,” said U.S. Attorney Murray.
“Traffickers treat human beings as commodities. They use force, fraud or coercion to prey on people’s vulnerabilities,” said Homeland Security Investigations (HSI) Charlotte Special Agent in Charge Ronnie Martinez. “HSI special agents will continue to focus their efforts on eradicating this heinous crime; no one should be subject to human trafficking.”
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. If convicted of forced labor, the defendant faces a sentence of up to 20 years in prison, as well as mandatory restitution.
The case is being investigated by the Department of Homeland Security, Homeland Security Investigations with assistance from the Davidson Police Department and Charlotte-Mecklenburg Police Department. It is being prosecuted by Assistant United States Attorney Kimlani M. Ford for the Western District of North Carolina and Trial Attorney Maryam Zhuravitsky for the Civil Rights Division’s Human Trafficking Prosecution Unit.
Federal Judge Sentences Asheville Man to Life in Prison for Co-Worker's MurderRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Derek Shawn Pendergraft, 22, of Asheville, has been sentenced to life in prison, for the murder of his co-worker, Sara Ellis. U.S. District Judge Martin Reidinger presided over today’s sentencing hearing.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Neal D. Labrie, Chief Ranger of the Blue Ridge Parkway; and Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), join U.S. Attorney Murray in making this announcement.
“When a life is cut short at the hands of another individual, no prison sentence is ever long enough to make things right for the victim’s loved ones,” said U.S. Attorney Murray. “Today’s sentence will not bring back Sara to her family and friends who miss her and think about her every day, but it is my sincere hope that everyone impacted by this heinous crime can find solace in knowing that Sara’s killer will never walk free among us again.”
According to filed court documents and statements made in court, on July 24, 2018, Pendergraft, who worked at the Pisgah Inn, murdered his co-worker, Sara Ellis, during the perpetration of aggravated sexual abuse. The murder occurred on the Blue Ridge Parkway, within the special territorial jurisdiction of the United States, and within the Western District of North Carolina.
On August 26, 2019, Pendergraft pleaded guilty to first degree murder and two counts of aggravated sexual abuse resulting in death. 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. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray commended the National Park Service, the FBI, and the SBI for their investigation of the case, and thanked the Transylvania County Sheriff's Office, the Haywood County Sheriff’s Office, and the Cruso Fire Department for their invaluable assistance.
Assistant U.S. Attorneys Don Gast and John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Concord, N.C. Man Pleads Guilty to Unlawful Distribution of Anabolic SteroidsRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced that Daniel John Hodges, 25, of Concord, N.C. appeared in federal court today before U.S. Magistrate Judge David C. Keesler, and pleaded guilty to unlawful distribution of anabolic steroids.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte Office, joins U.S. Attorney Murray in making today’s announcement.
According to plea documents filed in the case and today’s plea hearing, from about September 2018 to September 2019, Hodges did knowingly possess with intent to distribute anabolic steroids, including Testosterone Enanthane, Dianabol, Anavar, and Winstrol. Hodges further admitted to possessing between 20,000 and 40,000 units of anabolic steroids, and maintaining a premises for the the purpose of manufacturing or distributing a controlled substance. Over the course of the investigation, law enforcement also seized an electronic and a manual pill press/tableting machine that belonged to Hodges, often used to manufacture consumable steroid products. According to statements made in court during the plea hearing, Hodges obtained the substances unlawfully from a source of supply in China, and used, among other things, social media to advertise to and conduct transactions with customers.
Following the plea hearing, Hodges was released on bond. The charge of possession with intent to distribute an anabolic steroid carries a maximum prison term of ten years and a $500,000 fine. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney Murray thanked the DEA, the Cabarrus County Sherriff’s Office, and the Cabarrus County District Attorney’s Office for their investigation and coordination of this case.
Assistant U.S. Attorney Mark T. Odulio, of the U.S. Attorney’s Office in Charlotte, is handling the prosecution.
Enrolled Member of the Eastern Band of Cherokee Indians Is Charged with Dealing Fentanyl That Resulted in an Overdose DeathRead the Press Release
ASHEVILLE, N.C. – A federal grand jury sitting in Charlotte returned a criminal bill of indictment on February 20, 2020, charging Shannon White, 42, an enrolled member of the Eastern Band of Cherokee Indians and resident of the Cherokee Indian Reservation, with distributing fentanyl that resulted in an overdose death, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. White appeared in federal court this morning, following her arrest by the DEA and the Swain County Sheriff’s Office.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Asheville District Office, and the counties encompassing the Cherokee Indian Reservation, joins U.S. Attorney Murray in making today’s announcement.
The criminal bill of indictment alleges that on January 28, 2019, White did knowingly distribute a mixture or substance containing fentanyl, a Schedule II controlled substance, which resulted in the death of a victim identified in the indictment as J.F.
White had her initial appearance today in Asheville before U.S. Magistrate Judge W. Carleton Metcalf. The offense charged carries a mandatory minimum term of twenty years imprisonment, a maximum term of life imprisonment, and a $1,000,000 fine.
The charge contained in the indictment is an allegation. The defendant is innocent until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the DEA and the Swain County Sheriff’s Office for their investigation of this case. Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, is handling the prosecution.
Last month, U.S. Attorney Murray was joined by the U.S. Attorneys for the Middle and Eastern Districts of North Carolina and the District of South Carolina, in calling on Congress to issue a permanent ban on fentanyl and its analogues. Congress passed a 15-month extension on DEA’s existing ban on all variants of fentanyl, which President Trump signed into law on February 6, 2020. The current extension expires on May 6, 2021.
“While I am thankful that Congress extended the temporary ban on fentanyl and fentanyl-like analogues, I join law enforcement and prosecutors across the nation in calling for action to permanently outlaw this deadly substance and all its derivatives. Temporary bans are the equivalent of putting a Band-Aid on a gushing wound. We need a permanent fix. Fentanyl and fentanyl analogues kill people and devastate communities. These drugs belong in same legal category as heroin and other deadly substances,” said U.S. Attorney Murray.
U.S. Attorney Murray’s joint op-ed can be accessed here. More information about fentanyl and fentanyl analogues can be found here.
Wells Fargo Agrees to Pay $3 Billion to Resolve Criminal and Civil Investigations into Sales Practices Involving the Opening of Millions of Accounts Without Customer AuthorizationRead the Press Release
CHARLOTTE, N.C. - Wells Fargo & Company and its subsidiary, Wells Fargo Bank, N.A., have agreed to pay $3 billion to resolve their potential criminal and civil liability stemming from a practice between 2002 and 2016 of pressuring employees to meet unrealistic sales goals that led thousands of employees to provide millions of accounts or products to customers under false pretenses or without consent, often by creating false records or misusing customers’ identities, the Department of Justice announced today.
As part of the agreements with the United States Attorney’s Offices for the Western District of North Carolina and the Central District of California, the Commercial Litigation Branch of the Civil Division, and the Securities and Exchange Commission, Wells Fargo admitted that it collected millions of dollars in fees and interest to which the Company was not entitled, harmed the credit ratings of certain customers, and unlawfully misused customers’ sensitive personal information, including customers’ means of identification.
"When companies cheat to compete, they harm customers and other competitors," said Deputy Assistant Attorney General Michael D. Granston of the Department of Justice’s Civil Division. "This settlement holds Wells Fargo accountable for tolerating fraudulent conduct that is remarkable both for its duration and scope, and for its blatant disregard of customer’s private information. The Civil Division will continue to use all available tools to protect the American public from fraud and abuse, including misconduct by or against their financial institutions."
"Our settlement with Wells Fargo, and the $3 billion monetary penalty imposed on the bank, go far beyond ‘the cost of doing business.’ They are appropriate given the staggering size, scope and duration of Wells Fargo’s illicit conduct, which spanned well over a decade," said U.S. Attorney Andrew Murray for the Western District of North Carolina. "When a reputable institution like Wells Fargo caves to the pernicious forces of greed, and puts its own interests ahead of those of the customers it claims to serve, my office will not sit idle. Today’s
announcement should serve as a stark reminder that no institution is too big, too powerful, or too well-known to be held accountable and face enforcement action for its wrongdoings."
"This case illustrates a complete failure of leadership at multiple levels within the Bank. Simply put, Wells Fargo traded its hard-earned reputation for short-term profits, and harmed untold numbers of customers along the way," said U.S. Attorney Nick Hanna for the Central District of California. "We are hopeful that this $3 billion penalty, along with the personnel and structural changes at the Bank, will ensure that such conduct will not reoccur."
"Our office is committed to bringing to justice those who deliberately falsify and fabricate bank records in order to deceive regulators and the public," said Inspector General Mark Bialek of the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection. "I commend our agent and our law enforcement partners for their hard work and persistence that led to today’s announcement."
"Today’s multi-billion-dollar penalty holds Wells Fargo accountable for its unlawful sales practices and pressure tactics in which it deceived millions of clients, thus causing substantial hardship for the very individuals who placed their trust in the institution," said Inspector General Jay N. Lerner Federal Deposit Insurance Corporation. "The FDIC Office of Inspector General is committed to working with our law enforcement partners in order to investigate such financial crimes that harm customers and investors, and undermine the integrity of the banking sector."
The criminal investigation into false bank records and identity theft is being resolved with a deferred prosecution agreement in which Wells Fargo will not be prosecuted during the three-year term of the agreement if it abides by certain conditions, including continuing to cooperate with further government investigations. Wells Fargo also entered a civil settlement agreement under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) based on Wells Fargo’s creation of false bank records. FIRREA authorizes the federal government to seek civil penalties against financial institutions that violate various predicate criminal offenses, including false bank records. Wells Fargo also agreed to the SEC instituting a cease-and-desist proceeding finding violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The $3 billion payment resolves all three matters, and includes a $500 million civil penalty to be distributed by the SEC to investors.
The 16-page statement of facts accompanying the deferred prosecution agreement and civil settlement agreement outlines a course of conduct over 15 years at Well Fargo’s Community Bank, which was then the largest operating segment of Wells Fargo, consistently generating more than half of the company’s revenue. The statement of facts outlines top Community Bank leaders’ knowledge of the conduct. As part of the statement of facts, Wells Fargo admitted the following:
Beginning in 1998, Wells Fargo increased its focus on sales volume and reliance on annual sales growth. A core part of this sales model was the "cross-sell strategy" to sell existing customers additional financial products. It was "the foundation of our business model," according to Wells Fargo. In its 2012 Vision and Values statement, Wells Fargo stated: "We start with what the customer needs – not with what we want to sell them."
But, in contrast to Wells Fargo’s public statements and disclosures about needs-based selling, the Community Bank implemented a volume-based sales model in which employees were directed and pressured to sell large volumes of products to existing customers, often with little regard to actual customer need or expected use. The Community Bank’s onerous sales goals and accompanying management pressure led thousands of its employees to engage in unlawful conduct – including fraud, identity theft and the falsification of bank records – and unethical practices to sell product of no or little value to the customer.
Many of these practices were referred to within Wells Fargo as "gaming." Gaming strategies varied widely, but included using existing customers’ identities – without their consent – to open checking and savings, debit card, credit card, bill pay and global remittance accounts. From 2002 to 2016, gaming practices included forging customer signatures to open accounts without authorization, creating PINs to activate unauthorized debit cards, moving money from millions of customer accounts to unauthorized accounts in a practice known internally as "simulated funding," opening credit cards and bill pay products without authorization, altering customers’ true contact information to prevent customers from learning of unauthorized accounts and prevent Wells Fargo employees from reaching customers to conduct customer satisfaction surveys, and encouraging customers to open accounts they neither wanted or needed.
The top managers of the Community Bank were aware of the unlawful and unethical gaming practices as early as 2002, and they knew that the conduct was increasing due to onerous sales goals and pressure from management to meet these goals. One internal investigator in 2004 called the problem a "growing plague." The following year, another internal investigator said the problem was "spiraling out of control." Even after senior managers in the Community Bank directly called into question the implementation of the cross-sell strategy, Community Bank senior leadership refused to alter the sales model, which contained unrealistic sales goals and a focus on low-quality secondary accounts.
Despite knowledge of the illegal sales practices, Community Bank senior leadership failed to take sufficient action to prevent and reduce the incidence of such practices. Senior leadership of the Community Bank minimized the problems to Wells Fargo management and its board of directors, by casting the problem as driven by individual misconduct instead of the sales model itself. Community Bank senior leadership viewed negative sales quality and integrity as a necessary byproduct of the increased sales and as merely the cost of doing business.
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The government’s decision to enter into the deferred prosecution agreement and civil settlement took into account a number of factors, including Wells Fargo’s extensive cooperation and substantial assistance with the government’s investigations; Wells Fargo’s admission of wrongdoing; its continued cooperation in the investigations; its prior settlements in a series of regulatory and civil actions; and remedial actions, including significant changes in Wells Fargo’s management and its board of directors, an enhanced compliance program, and significant work to identify and compensate customers who may have been victims. The deferred prosecution agreement will be in effect for three years.
The global settlement also reflects coordination between the Department of Justice and the SEC to ensure a resolution that appropriately addresses the severity of the defendants’ conduct while avoiding the imposition of fines and penalties that are unnecessarily duplicative.
The deferred prosecution agreement was handled by the United States Attorney’s Offices in Charlotte and Los Angeles, with investigative support from the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation - Office of Inspector General, the Federal Housing Finance Agency - Office of Inspector General, the Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, and the United States Postal Inspection Service.
The civil settlement agreement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office in Los Angeles.
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North Dakota Man Is Arrested on Multiple Federal Charges for Alleged Investment SchemeRead the Press Release
ASHEVILLE, N.C. – A criminal bill of indictment has been unsealed in federal court in Asheville following the arrest of Mark Nicholas Pyatt in North Dakota, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. The indictment charges the 40-year-old former resident of Haywood County with securities fraud, wire fraud, investment adviser fraud, and money laundering.
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 allegations contained in the indictment, 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). As alleged in the indictment, 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.
The indictment alleges that, in order to induce the victims to part with their money, Pyatt made a number of false and fraudulent representations. 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 the allegations in the indictment, contrary to the promises he made to his victim-investors, Pyatt simply stole the vast majority of the investors’ money. The indictment alleges that Pyatt misappropriated over $100,000 to pay for personal expenses, including 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.
As alleged in the indictment, Pyatt perpetuated the fraud by making 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 allegedly notified his investors by email that a “complete and catastrophic” loss had occurred, and that their money was gone. Pyatt allegedly claimed that he was investigating the loss with the assistance of a forensics firm, and he told his investors that the loss was due to a technical oversight or failure by the brokerage firm holding the investment account. According to the indictment, all of these representations were false; in reality, the money was gone because Pyatt spent it.
The indictment further alleges that, during at least a substantial portion of the scheme, Pyatt resided in Haywood County and targeted local victims. In total, the indictment alleges that Pyatt stole at least $218,000 from his victim investors, many of whom were at, or near, retirement age.
Pyatt had his initial appearance in the U.S. District Court in the District of North Dakota, and will have a court appearance in the Western District of North Carolina at a later date.
The wire fraud charge carries a maximum prison term of 20 years and a maximum fine that is the greatest of $250,000 or twice the gross gain or gross loss. The securities fraud charge carries a maximum prison term of 20 years and a maximum fine of $5,000,000. The maximum penalty for the investment adviser fraud charge is five years in prison and a $10,000 fine. The money laundering charge carries a maximum prison term of 10 years and a maximum fine that is the greater of $250,000 or twice the amount of criminally derived property involved in the transaction.
All charges contained in the indictment are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
Today, the Commodity Futures Trading Commission (CFTC) and the U.S. Securities & Exchange Commission (SEC) also announced separate civil actions filed with the U.S. District Court in the Western District of North Carolina against WRI and Pyatt.
In making today’s announcement, U.S. Attorney Murray commended the Haywood County Sheriff’s Office, the SBI, and HSI for their aid in the investigation of the criminal case, and thanked the CFTC and SEC for their continued cooperation.
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: /usao-wdnc/elder-justice-initiative