Western District of North Carolina

CHARLOTTE, N.C. – A federal jury in Charlotte convicted Robert Nathaniel Johnson, III, 35, of Lancaster, South Carolina today for credit card fraud, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. presided over the trial.

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 evidence presented at trial, from September 29 to October 20, 2018, Johnson and his co-defendant, Charles Vincent Brown, used a stolen credit card number to create counterfeit credit cards, which they then used to purchase more than $250,000 of merchandise, including electronics, sneakers, clothing and gaming equipment.  Trial evidence established that the defendants obtained the credit card of an individual identified as Victim #1, and re-encoded the stolen credit card number onto counterfeit credit cards bearing the defendants’ names and the names of other co-conspirators. According to evidence presented at trial, Johnson and others used the counterfeit credit cards at multiple retail stores, including at Best Buy, Foot Action, Foot Locker, and Neiman Marcus. Johnson specifically used the counterfeit credit cards to buy more than $10,000 in sneakers and apparel.

The jury convicted Johnson of conspiracy to commit access device fraud, which carries a maximum prison sentence of five years, and access device fraud, which carries a maximum sentence of 10 years in prison. A sentencing date for Johnson has not been set. On November 4, 2019, Brown pleaded guilty to conspiracy to commit access device fraud and is currently awaiting sentencing.

In making today’s announcement, U.S. Attorney Murray thanked the U.S. Secret Service for their investigation of this case.

Assistant U.S. Attorneys Caryn Finley and Stephanie Spaugh, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

 

WASHINGTON – A federal grand jury in Charlotte, North Carolina returned an indictment yesterday, charging three Charlotte tax preparers with conspiring to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and First Assistant U.S. Attorney William Stetzer for the Western District of North Carolina.

Four additional Charlotte tax preparers also named in yesterday’s indictment previously were charged with conspiring to defraud the United States in separate charging documents filed earlier this week.

According to the indictment, Joseph Octave owned and operated Kapital Financial Services, a tax return preparation business with two offices located in Charlotte, North Carolina. From 2014 through at least 2019, Octave and his employees, including Vonyeda Carson, Wendia Courtois, Whitney Vargas-Medrano, Melissa Greene, Natisha Holloman, and Kimberly Joline allegedly conspired to falsify clients’ tax returns by claiming deductions, business losses, American Opportunity credits, education credits, and earned income tax credits that the clients did not incur, in order to fraudulently increase refunds to be paid by the IRS. The indictment further charges that during some of these years, Carson and Courtois filed false tax returns in their own names.

Octave, Carson, and Courtois were charged in yesterday’s indictment. Joline, Holloman, Greene, and Vargas-Medrano were named in yesterday’s indictment but were separately charged by criminal informations filed on July 20, 2020.

If convicted, each defendant faces a maximum sentence of five years in prison on the conspiracy charge. Octave, Carson, and Courtois additionally face a maximum sentence of three years in prison on each count of aiding and assisting in the preparation of a false tax return. Carson and Courtois also face a maximum sentence of three years in prison for filing their own false tax returns. The defendants also face a period of supervised release, restitution, and monetary penalties.

An indictment or information merely alleges that crimes have been committed. The defendants are presumed innocent until proven guilty beyond a reasonable doubt.

Principal Deputy Assistant Attorney General Zuckerman and First Assistant U.S. Attorney Stetzer commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney Brian Flanagan of the Tax Division and Assistant U.S. Attorney Caryn Finley, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

CHARLOTTE, N.C. – This week, the U.S. Attorney’s Office has charged seven Charlotte tax return preparers for conspiring to defraud the IRS.

Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), join the U.S. Attorney’s Office in making today’s announcement.

A federal grand jury sitting in Charlotte returned a 20-count indictment yesterday, charging Joseph Octave, 47, Vonyeda Carson, 36, and Wendia Courtois, 44, all of Charlotte, with conspiring to defraud the United States, aiding and assisting in the preparation of false tax returns for their clients, and in some cases filing false personal tax returns.  The indictment also identifies four other tax preparers who were charged earlier this week by criminal informations with conspiracy to defraud the United States. They are, Melissa Greene, 39, Natisha Holloman, 41, Kimberly Joline 30, and Whitney Vargas-Medrano, 31, also from Charlotte.

According to the filed charging documents, Joseph Octave owned and operated Kapital Financial Services, a tax return preparation business with two offices located in Charlotte.  Since 2014, Octave and his employees, including Carson, Courtois, Vargas-Medrano, Greene, Holloman, and Joline conspired to defraud the United States by preparing and filing tax returns on behalf of clients that claimed fabricated and fraudulent items, including Schedule A deductions, Schedule C business income and losses, American Opportunity credits, education credits, and earned income tax credits.  Octave, Greene, Joline, and Vargas-Medrano trained Kapital Financial Services employees to falsify federal income tax returns.  The training material provided to employees included scripts and cheat sheets.  The indictment further alleges that Carson and Courtois filed false personal tax returns.

If convicted, the defendants face a maximum sentence of five years in prison on the conspiracy charge.  Octave, Carson, and Courtois face a maximum of three years in prison on each of the counts alleging they aided and assisted in the preparation of false income tax returns.  Carson and Courtois face a maximum sentence of three years on each of the counts alleging they signed and filed their own false tax returns. 

The indictments and informations merely allege that crimes have been committed.  The defendants are presumed innocent until proven guilty beyond a reasonable doubt.

In making today’s announcement the U.S. Attorney’s Office and Principal Deputy Assistant General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation,

Assistant U.S. Attorney Caryn Finley and Trial Attorney Brian Flanagan of the Tax Division are prosecuting the case.

CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad Jr. sentenced Tony Garrett Taylor, 40, a native and former resident of Harrisburg, North Carolina, currently residing in Brooklyn, N.Y., to 96 months in prison followed by two years of supervised release, for stealing more than $6.1 million from Medicaid and committing tax evasion, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Tony Taylor was also ordered to pay $6,121,655 to North Carolina Medicaid and $1,124,603 to the U.S. Internal Revenue Service as restitution.  

John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, and Attorney General Josh Stein, who oversees the North Carolina Medicaid Investigations Division (MID), join U.S. Attorney Murray in making today’s announcement.

According to filed court documents and today’s sentencing hearing, from June 2015 to December 2017, Tony Taylor and his brother, Jerry Lewis Taylor, operated a scheme to defraud Medicaid of more $9.4 million by submitting false and fraudulent reimbursement claims for patient services that were either non-existent or mischaracterized to Medicaid.  The brothers submitted the fraudulent claims through several companies they owned and/or operated, including Taylor Behavioral Health Center, LLC and Options Driven LLC, both located in Monroe, N.C.; Design for Change LLC located in Raleigh and elsewhere; and SHG Consultants, located in Gastonia, N.C. and elsewhere (collectively, the “Taylor businesses”). These entities specialized in providing outpatient behavioral health services to at-risk youth throughout North Carolina.

Court records show that, during the relevant time period, Tony Taylor recruited other co-conspirators to the scheme, including Ameera Ali, who provided billing services for the conspiracy and furnished Tony Taylor with prospective patient lists containing identifying information for eligible Medicaid beneficiaries. The beneficiary information obtained from Ali and others were used, in turn, to file fraudulent reimbursement claims for services that were never provided. To the extent that services were actually provided, the conspirators submitted to Medicaid fraudulent reimbursement claims that misrepresented the services rendered so as to obtain a higher reimbursement rate, a practice known as “upcoding.”

According to court documents, Tony Taylor also recruited Devon Rambert-Hairston, a licensed nurse practitioner and the director of one of the entities operated by the brothers, to review and sign-off on fictitious patient progress notes. Court records show that Rambert-Hairston never provided any behavioral health or medical services to the Medicaid beneficiaries or rarely interacted with them at all. To the extent that the beneficiaries received any treatment, those services were provided by an individual identified in court documents as J.B., who was not credentialed to provide those types of services.

Tony and Jerry Taylor also conspired with Christine Yvette Knight, who operated Connect and Move Staffing LLC in Florida. Knight’s role in the conspiracy was to create fraudulent treatment notes for the beneficiaries, and to prepare fake billing spreadsheets which were used by the brothers to further perpetuate the fraud.

During the course of the fraudulent scheme, Tony and Jerry Taylor caused hundreds of false and fraudulent claims to be submitted to Medicaid for false and fraudulent services.  As a result, more than $9.4 million in fraudulent claims were submitted to Medicaid, resulting in approximately $6.1 million in fraudulent payments from Medicaid.

In addition to health care fraud, Tony Taylor also committed tax evasion, by failing to file timely and/or accurate U.S. Individual Income Tax Returns for tax years 2015, 2016, and 2017, and diverting fraudulent receipts from Medicaid to nominee entities and individuals. Tony Taylor also made personal expenditures using business accounts and Medicaid fraud proceeds, including spending more than $2.9 million for his “opulent lifestyle,” air fare, hotels, nightclubs, and shopping.  

Tony Taylor pleaded guilty to health care fraud conspiracy and tax evasion. He is currently released on bond and upon designation of a federal facility he will report to the federal Bureau of Prisons to begin serving his sentence. 

In announcing Tony Taylor’s sentence, Judge Conrad noted that Tony Taylor stole from programs designed to help disadvantaged children for personal gain and an opulent lifestyle.

Jerry Taylor is currently awaiting sentencing after pleading guilty to health care fraud conspiracy. Ameera Ali also pleaded guilty to health care fraud conspiracy and is currently awaiting sentencing. Devon Rambert-Hairston pleaded guilty to money laundering conspiracy and was sentenced to a year and a day in prison and a year of supervised release, and was ordered to pay $813,726 in restitution. Christine Yvette Knight pleaded guilty to making a false statement relating to health care matters. A sentencing date for Knight has not been set.

In making today’s announcement U.S. Attorney Murray thanked the FBI, the IRS, USPIS, and MID for their investigation of this case.

Assistant U.S. Attorneys Michael Savage and William Bozin of the U.S. Attorney’s Charlotte Office are prosecuting the case.

If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected].

CHARLOTTE, N.C. – U.S. District Judge Frank D. Whitney handed down a 68-month sentence Monday afternoon to Delmond Dmonta Cunningham for a firearms offense, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Cunningham, 26, of Charlotte, was also ordered to serve three years under court supervision.

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, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD).

According to court documents and yesterday’s sentencing hearing, on August 30, 2018, at about 7:30 a.m., CMPD offices responded to a call regarding shots being fired near Villa Heights Elementary School in Charlotte. Court records show that a male, later identified as Cunningham, fired two shots at his ex-girlfriend and a relative, while they were in their vehicle dropping off the victim’s daughter at school. According to court documents, Cunningham followed the victim throughout the school parking lot, and once the victim left the parking lot Cunningham pointed a firearm out of his car window and fired two shots at the victim’s car. After the shots were fired, Cunningham fled the scene. Court records show that Cunningham has a history of domestic violence, and that, at the time of the incident, the victim had obtained a restraining order against him.

Over the course of the investigation, law enforcement determined that two .45 caliber shell casings were found in the school parking lot, which were later matched up with a stolen .45 caliber pistol found in Cunningham’s possession at the time of his arrest. One of the rounds fired penetrated a bedroom of a nearby house. Cunningham has a prior felony conviction and is prohibited from possessing a firearm or ammunition. On April 23, 2019, Cunningham pleaded guilty to possession of ammunition by a convicted felon. At yesterday’s sentencing hearing, Judge Whitney varied upward and imposed on Cunningham a sentence above the statutory guidelines.

At the sentencing hearing, in discussing the nature and circumstances of the offense, Judge Whitney described the defendant’s actions as “extraordinarily reckless” and noted that, luckily, “the round that went into another house did not hurt anyone.” Cunningham is currently in custody and will be transferred to the custody of the Federal Bureau of Prisons upon the designation of a federal facility.

The investigation was handled by the ATF and CMPD. The case was prosecuted by Assistant United States Attorney Robert Gleason of the U.S. Attorney’s Office in Charlotte.

CHARLOTTE, N.C. – The U.S. Attorney’s Office for the Western District of North Carolina, in partnership with the FBI and the AARP in North Carolina, hosted a virtual informational seminar via Facebook Live today, to discuss the rise of online romance

scams targeting older adults and to offer tips on how to avoid becoming a victim of fraud, announced U.S. Attorney Andrew Murray. 

Due to the COVID-19 pandemic, older adults are increasingly turning to the internet to obtain information, stay in touch with loved ones, connect with friends on social media, and form new romantic relationships. Scammers are taking advantage of older Americans’ increased online presence to perpetuate romance scams and steal elder victims’ money and identities, and, even worse, turn older adults into unwitting “money mules.” A money mule is a person that uses an existing or new bank account to conduct wire transfers or other types of financial transactions at the request of a scammer. Typically, the funds the money mules receive and engage in transactions with are proceeds of fraudulent schemes and, in many instances, the account holders are not aware they are being exploited as money mules to carry out financial fraud.

During today’s livestream presentation, Assistant U.S. Attorney and Elder Fraud Coordinator for the Western District Maria Vento, and Supervisory Special Agent for the FBI Brian Cyprian provided an overview of romance scams, money mule schemes and identity theft, and shared useful tips on how to spot those types of scams and how to avoid becoming a victim of fraud. Here are some of the tips shared with the audience:

• Be mindful of what information you post and make public online, as scammers can use details shared on social media and dating sites to better understand and target you.
• If someone contacts you and wants to start a romantic relationship with you, research the person’s photo and profile using online searches to see if the image, name, or details have been used elsewhere.
• Go slowly and ask lots of questions.
• Beware if the individual seems too perfect or quickly asks you to leave a dating service or social media site to communicate directly on your own phone or through a third party app.
• Beware if the individual attempts to isolate you from friends and family or requests inappropriate photos or financial information that could later be used to extort you.
• Beware if the individual promises to meet in person, but always comes up with excuses as to why he or she can’t.
• Never send money to anyone you have only communicated with online or by phone.
• If an online prospect claims to be a United States citizen living or working in another country and asks you for help or money, refer him or her to the local U.S. Embassy or Consulate. If you want to send money, consider using a U.S. Department of State Office of Overseas Citizens Services (OCS) Trust.
• Do not use your personal bank account to transfer money or conduct financial transactions at the direction of someone you met online.
• Do not give out personal information via the phone, mail, or internet/email unless you initiated the contact and are certain you are dealing with a trusted organization or individual.
• Verify requests for personal information from any business or financial institution by contacting them using the main contact information on their official website.
• Do not open, respond to, or click on links contained within unsolicited emails.
• Use strong and different passwords to secure banking accounts, credit accounts, etc., and change passwords and check accounts routinely.
• Limit personal information shared publicly on social networking sites. Never post your full name, Social Security number, address, phone number, or account numbers in publicly accessible sites.
• Regularly obtain and check your credit reports from the three credit bureaus to ensure you recognize all accounts.
• Tell someone you trust if you have become a victim.
• If you suspect fraud or have fallen victim to an online scam report the fraud to the authorities and the dating website.
• Keep in mind that if you send money once, you’ll be a target for life.
• Remember, it’s not rude to say, “NO,” if someone approaches you online.
• A good rule of thumb is, if it’s too good to be true, it’s likely a scam.

To report suspicious activity or if you’ve fallen victim to a scam, please call the Department of Justice’s National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311), or online at www.IC3.gov.

For more information about the U.S. Attorney’s Office Elder Justice Initiative, please visit: https://www.justice.gov/usao-wdnc/elder-justice-initiative. 

A recording of the seminar can be viewed at https://www.facebook.com/AARPNC/videos/vb.86880509778/291438361931498/?type=2&theater.

CHARLOTTE, N.C. – A federal jury in Charlotte has convicted William Jon Patric Ebert, 60, of Boone, N.C. of child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney presided over the trial. The jury returned the guilty verdict on Friday, July 17, 2020, following a two-day trial.

According to filed court documents and evidence presented at trial, Ebert sexually abused a minor for more than six years. The sexual abuse took place in Ohio and in North Carolina. Evidence presented at trial established that Ebert also used the minor to produce child pornography photographs of the minor, and that he stored those photographs on his computer and other devices he owned. On September 22, 2016, law enforcement officials executed a search warrant at Ebert’s residence in Boone and seized several devices and computers.  A forensic analysis of Ebert’s hard drive revealed that it contained sexually explicit images of the minor victim.

The jury convicted Ebert of using a minor to produce child pornography photographs of the minor. The jury also convicted Ebert of possessing those photographs. He was found not guilty of transporting a minor with intent to engage in sexual criminal activity. Ebert is currently in federal custody. A sentencing date has not been set.

The production of child pornography charge carries a mandatory minimum sentence of 15 years and a maximum sentence of 30 years in prison. The possession of child pornography charge carries a maximum sentence of 10 years in prison. Both charges carry a maximum fine of $250,000.   

In making today’s announcement U.S. Attorney Murray thanked the North Carolina State Bureau of Investigation and the Avon Police Department in Ohio for their investigation of this case. 

Assistant United States Attorneys Kimlani Ford and Eric Lindahl are prosecuting the case for the United States.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

ASHEVILLE, N.C. – Chief U.S. District Judge Martin Reidinger sentenced William Keith Leonhart, 41, of Franklin, N.C., to 154 months in prison followed by five years of supervised release for robbing at gunpoint an Asheville bank, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.

According to filed court documents and yesterday’s sentencing hearing, on August 5, 2019, the Asheville Police Department received a call regarding an armed robbery of the First Citizens Bank located at 1201 Tunnel Road in Asheville. Court records show that Leonhart had entered the bank, approached a teller and brandished a firearm. While pointing his firearm at the teller, Leonhart gave the teller a threatening demand note. The teller handed Leonhart approximately $500 out of her cash drawer and Leonhart fled the scene in a stolen vehicle. The next day, law enforcement identified Leonhart driving a second stolen vehicle in Black Mountain, N.C. Following a vehicle chase, Leonhart was arrested, and law enforcement recovered from inside the vehicle the firearm Leonhart had used during the robbery. According to court records, Leonhart had previously robbed the same bank in 2013, and had received a sentence of 66-89 months in prison.

In October 2019, Leonhart pleaded guilty to one count of bank robbery and one count of possession of a firearm in furtherance of a crime of violence. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement U.S. Attorney Murray thanked the Asheville Police Department, the Black Mountain Police Department, and the Federal Bureau of Investigation for their investigation of this case. He also thanked District Attorney Todd Williams for his office’s coordination over the course of the prosecution of this case.

Special Assistant United States Attorney (SAUSA) Alexis Solheim 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 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, N.C. – U. S. District Judge Martin Reidinger sentenced Ginger Lynn Cunningham, 39, formerly of Hendersonville and currently residing in Brevard, to 14 months in prison yesterday, for selling fake title insurance policies, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Cunningham was ordered to serve three years under court supervision and to pay $412,344 as restitution.

According to information contained in filed court documents and presented in court during Cunningham’s sentencing hearing, Cunningham owned and operated Blue Ridge Title Company, an independent title insurance agency located in Buncombe County. Beginning in February 2015, Cunningham became an authorized independent agent for Commonwealth Land Title Insurance Company (Commonwealth).  As an authorized agent, Cunningham’s title agency sold title insurance policies underwritten by Commonwealth and collected premium payments during real estate closings.  Under the agreement with Commonwealth, Cunningham’s Blue Ridge Title Company would keep 80% of the premium payments, and the remaining 20% would be sent to Commonwealth. On or about March 21, 2016, Commonwealth terminated their agreement with Blue Ridge Title Company, because Cunningham failed to submit premium payments as required to Commonwealth.  At the time of termination, Blue Ridge Title Company owed Commonwealth in excess of $25,000 in premium payments.

According to court documents, from March 2016 until October 2017, Cunningham continued to represent herself and Blue Ridge Title Company to be an independent agent of Commonwealth, despite knowing that she no longer had any relationship with Commonwealth, and continued to sell fictitious title insurance policies and collect premium payments. The buyers of these bogus title insurance policies did not know that they were not underwritten by any insurance provider, and thus had no value.  Court records show that Cunningham further deceived her customers by drafting official looking, but fictitious, policy documents that bore the name of Commonwealth Land Title Insurance Company and fabricated policy numbers.  Cunningham kept 100% of the premium payments associated with these worthless policy sales.  As court records show, during the relevant time period, Cunningham sold at least 973 counterfeit title insurance policies and received at least $412,344 in premiums for the bogus policies. On October 28, 2019, Cunningham pleaded guilty wire fraud.

In making today’s announcement U.S. Attorney Murray commended the U.S. Department of Housing and Urban Development, Office of Inspector General, the Federal Housing Finance Agency, Office of Inspector General, and the North Carolina Department of Insurance for their investigation of this case.

Assistant United States Attorney Don Gast, of the U.S. Attorney’s Office in Asheville, prosecuted the case for the United States.

 

 

CHARLOTTE, N.C. – Today, U. S. District Judge Kenneth D. Bell sentenced Thomas Arthur Rittenhouse, 76, of Boone, N.C. to 20 years in prison on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Rittenhouse was ordered to a lifetime of supervised release and to register as a sex offender.

According to filed court documents, evidence presented at Rittenhouse’s trial, and today’s sentencing hearing, between 2014 and 2017, Rittenhouse used peer-to-peer computer networks to obtain dozens of videos depicting children being sexually abused.  Rittenhouse also made the child abuse videos available for download by other users of the peer-to-peer network. Evidence presented at trial established that Rittenhouse specifically used search terms associated with child abuse material to seek out such videos and images, and then shared those images with others. A forensic analysis of the devices that belonged to Rittenhouse revealed that he possessed more than 60 videos and 74 images depicting the sexual abuse of children, including adult men sexually abusing prepubescent children. According to court records, the defendant also told law enforcement that he had downloaded and deleted more than 1,000 child pornography files in the previous fifteen years. 

In December 2019, a federal jury convicted Rittenhouse of two counts of transportation of child pornography, and one count of possession of child pornography. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement U.S. Attorney Murray commended the Boone Police Department and the North Carolina State Bureau of Investigation for their investigation of this case, and thanked Homeland Security Investigations and the Federal Bureau of Investigation for their assistance. 

Assistant United States Attorney Alfredo DeLaRosa prosecuted the case for the United States.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

ASHEVILLE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced John Howard Johnson, 65, to 130 months in prison followed by three years of supervised release, in connection with a series of armed bank robberies he committed in 2019, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.  In addition to the prison term, Judge Cogburn also ordered Johnson to pay $8,569 as restitution.

According to filed court documents and today’s sentencing hearing, between July 3, 2019, and August 23, 2019, Johnson robbed four banks in North and South Carolina. Court records show that on July 3, 2019, Johnson entered a BB&T bank located at 174 Meeting Street, in Charleston, S.C., and passed a demand note written on an envelope to a teller that read, “I have a gun.  Give me $100s and $50s.” According to court records, Johnson lifted his shirt and exposed what appeared to be a firearm and threatened to shoot the teller. The teller placed $1,800 into an envelope and gave it to Johnson, who then fled the scene in a vehicle.

According to court records, the second bank robbery occurred on July 23, 2019. On that date, Johnson entered the First Bank located at 201 Market Street, in Wilmington, N.C., and, similar to the first robbery, Johnson passed a demand note to the teller, threatening to kill the teller and asking for cash. After the teller handed Johnson the money, Johnson again fled in his vehicle. The next bank robbery occurred on July 31, 2019, at the BB&T bank located at 150 S. Main Street, in Mount Holly, N.C. As with the prior robberies, Johnson entered the bank, passed a demand note written on an envelope to a teller that read, “I have a gun in my shorts.  Give me all of your 50s and 100s.  Don’t make me kill you.  Don’t make me shoot you.” After the teller put the cash into an envelope and gave it to Johnson, the defendant fled in the same vehicle.

According to court records, on August 23, 2019, Johnson entered the TD Bank located at 535 Greenville Highway, in Hendersonville, N.C., and again passed a demand note to the teller that read, “This is not a joke, I have a gun, I will kill you.”  Johnson took the money the teller handed him and left the bank in his vehicle.

Law enforcement arrested Johnson in Charleston in September 2019. On February 3, 2020, he pleaded guilty to bank robbery charges. Johnson is in federal custody and will be transferred into custody of the Federal Bureau of Prisons upon designation of a federal facility. 

In making today’s announcement, U.S. Attorney thanked the FBI, the Mt. Holly Police Department, the Hendersonville Police Department, the Wilmington Police Department, the Charleston Police Department and the Sever County Police Department for investigation of this case.

Assistant U.S. Attorney Don Gast, of the U.S. Attorney’s Office in Asheville, prosecuted the case.

The Internal Revenue Service Criminal Investigation division and the U.S. Attorney’s Office for the Western District of North Carolina reminded taxpayers of the July 15 filing and payment deadline and warned against an increase in tax and COVID-19 scams.

Due to COVID-19, the original filing deadline and tax payment due date for 2019 was postponed from April 15 to July 15. Taxpayers filing Form 1040 series returns must file Form 4868 by July 15 to obtain the automatic extension to Oct. 15.

"Although the extension provides additional time to file the tax return – it is not an extension to pay any taxes due", said Matthew D. Line, Special Agent in Charge of the IRS Criminal Investigation division in North Carolina, South Carolina and Tennessee. "For people facing hardships who cannot pay in full, including those affected by COVID-19, the IRS has several options available to help. The IRS encourages taxpayers to visit IRS.gov as soon as possible to explore these options and avoid accruing interest and penalties after the July 15 deadline."

As the filing deadline approaches, taxpayers should beware of tax and COVID-19 related scams. "Criminals use the tax filing deadline as an opportunity to steal personal and financial information", said R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. "Taxpayers should remain vigilant and know that the IRS will not initiate contact with them via phone, email or social media to request personal or financial information."

In the last few months, the IRS Criminal Investigation division (CI) has continued to see a tremendous increase in a variety of Economic Impact Payment scams and other financial schemes. CI continues to work with its law enforcement partners to put a stop to these schemes and bring criminals to justice.

Taxpayers can report COVID-19 scams to the National Center for Disaster Fraud. Taxpayers can also report fraud or theft of their Economic Impact Payments to the

Treasury Inspector General for Tax Administration (TIGTA). Unsolicited (phishing) e-mails that appear to be from the IRS should be forwarded to [email protected].

For the most up-to-date information about the tax filing deadline and IRS impersonation scams, taxpayers can visit IRS.gov.

 

CHARLOTTE, N.C. – Hal H. Brown Jr., 70, of Asheville, N.C., was sentenced to 210 months in prison and three years of supervised release for orchestrating a $22 million Ponzi scheme, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also ordered Brown to pay more than $17 million as restitution.

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 and yesterday’s sentencing hearing, from at least 2007 through September 2019, Brown fraudulently obtained more than $22.5 million from at least 60 victims, some of whom were at, or near, retirement age, by engaging in a sophisticated Ponzi scheme through his company Oodles Inc. and its various affiliates (collectively “OODLES”). Court records show that Brown was the architect and primary, if not sole, operator of the fraud, and he used his religious reputation and his respected status in the local community to con his investor-victims into trusting him with their money.

According to court documents, Brown defrauded family, friends, neighbors, and fellow church members, who invested anywhere from a few thousand to a few million dollars in OODLES. To induce victims to invest their money, Brown falsely represented that OODLES owned hundreds of millions of dollars in intellectual property, namely family entertainment shows and movies with a religious theme. As part of the scheme, Brown repeatedly lied to victims about the imminent sale of those intellectual properties to various well-known media companies. To perpetuate the fraud, Brown developed marketing material seeking investments or loans for OODLES that claimed large returns on funds invested or lent to the company.

As Brown previously admitted in court, to convince victims the scheme was legitimate and to appease investors who sought an explanation about delays in payouts, Brown provided victims with a number of fraudulent and misleading statements and fictitious information, including fake bank statements and falsified company agreements, among others. He also impersonated employees of well-known media companies and at least one law-firm to add the appearance of legitimacy to his scheme.

According to court documents and today’s sentencing hearing, Brown led an affluent lifestyle, and used a substantial part of victim money on personal expenses unrelated to purported OODLES transactions. He also used funds contributed by new investors to make payments to existing investors, commonly referred to as “Ponzi” payments.

At the sentencing hearing, the Court heard evidence, including statements from some of Brown’s victims, about the tremendous damage wrought by Brown’s fraudulent scheme. This included causing some of his victims serious substantial economic and psychological damage, robbing some of his victims’ nest eggs set aside for education and retirement, and forcing some of his victims out of retirement and back into the workforce.

On January 21, 2020, Brown pleaded guilty to securities fraud and transactional money laundering. In handing down Brown’s enhanced sentence today, the Court considered Brown’s lack of remorse and accountability and the need to protect the public from further crimes by Brown, after evidence presented at the sentencing hearing revealed that, up until very recently, Brown continued to proclaim his innocence in a video he had sent to numerous individuals with whom he had worked decades ago in a volunteer organization to solicit letters of support for his good character. Based on the false information Brown presented in his video, some of the email recipients did write letters of support for Brown, which were filed with the Court. The Court also received evidence of a recent email sent on Brown’s behalf repeating Brown’s lies about his innocence and soliciting loans to help Brown pay expenses, which Brown would purportedly repay with interest in the near future.

In imposing the lengthy sentence, Judge Bell noted that while most Ponzi schemes are horrendous, Brown’s conduct represented some of the worst fraud committed in the worst way and harming some of the most vulnerable victims. Brown was remanded into custody at the conclusion of the sentencing hearing to begin serving his sentence immediately.

In making today’s announcement U.S. Attorney Murray thanked the FBI’s Hickory Residence Agency office, which handled the investigation.  

Assistant U.S. Attorneys Daniel Ryan and Mark Odulio 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.

CHARLOTTE, N.C. – Federal authorities have seized $80,661.05 in funds held at bank accounts allegedly used to perpetuate COVID-19 unemployment fraud, announced U.S. Attorney Andrew Murray.  The federal seizure warrant was executed by U.S.

Picture of COVID-19 Fraud Hotline 866-720-5721 or justice.gov/DisasterComplaintForm

Secret Service agents and was unsealed in federal court today. Earlier this week, the U.S. Attorney’s Office announced the seizure of $48,742.50, also allegedly tied to a COVID-19 unemployment fraud scheme.

Reginald A. DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney Murray in making today’s announcement.

The affidavit filed in support of the federal warrant alleges that the funds were seized as part of an ongoing investigation of a COVID-19 unemployment fraud scheme that implicates bank accounts purportedly opened by individuals in the Western District of North Carolina.  As alleged in court documents, the bank accounts identified in the seizure warrant were allegedly used to transfer to scammers funds fraudulently obtained from federal and state unemployment benefit programs put in place to provide financial assistance to qualifying individuals impacted by the coronavirus outbreak.  The warrant alleges that scammers have targeted these programs and have exploited them for their benefit. 

Court documents allege that the scammers carried out the fraud by using identity theft victims’ Personally Identifiable Information (PII) to apply for unemployment benefits online. Then, at the direction of the fraudsters, bank account holders were directed to receive the fraud proceeds and to conduct financial transactions with those proceeds, or to transfer the money to other bank accounts, often located overseas.  In many instances, the bank account holders that received or made transactions with the stolen funds were not aware they were being exploited to carry out financial fraud. Rather, as the filed affidavit alleges, in many instances, the individuals who opened the bank accounts used to perpetuate the fraud were led to believe they were involved in online romantic relationships with the fraudsters. 

In making today’s announcement, U.S. Attorney Murray commended the U.S. Secret Service for their investigative work in this case and for their ongoing efforts to combat fraud related to COVID-19.  He also thanked financial institutions in Western North Carolina for their cooperation and their efforts to detect and report COVID-19 financial fraud.

Assistant U.S. Attorney Benjamin Bain-Creed, of the U.S. Attorney’s Office in Charlotte, is handling the federal warrants.

U.S. Attorney Murray also urged the public to remain alert in detecting COVID-19 fraud and to report suspicious activity to the local authorities, or by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form.  Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator at the U.S. Attorney’s Office.

          

CHARLOTTE, N.C. – Fourteen members of a methamphetamine trafficking ring have been charged with federal drug conspiracy and related drug and firearms offenses, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. The federal indictment was unsealed in court today.

Seven of those charged have been arrested by federal, state and local law enforcement, and the remaining seven defendants are currently incarcerated on unrelated charges. The arrests are the result of a multi-agency investigation targeting the trafficking of methamphetamine from Georgia into Western North Carolina. 

 “With methamphetamine trafficking on the rise, it is crucial that we continue to team up with our law enforcement counterparts to stem the flow of this dangerous drug, disrupt drug pipelines, and prosecute traffickers who plague our neighborhoods and imperil our communities,” said U.S. Attorney Murray.

“Methamphetamine poses a clear and present danger to the health and safety of communities,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Because of the unified effort of all law enforcement agencies involved and the subsequent prosecution by the U.S. Attorney’s Office, we have dismantled this alleged drug conspiracy, and these defendants will no longer be able to distribute this toxic drug that destroys lives and communities.”

“The trafficking of methamphetamine into our country and its spread through our communities is a national crisis. Together, through our partnerships with the DEA and the United States Attorney’s Office, we are fighting this battle as a united front,” said Sheriff Donald G. Brown II, of the Catawba County Sheriff’s Office.

According to allegations contained in the criminal indictment unsealed today in federal court, from 2018 through April 2019, the 14 defendants were involved in a drug conspiracy that trafficked and distributed methamphetamine in Catawba, Lincoln, Caldwell, and Alexander Counties and elsewhere in Western North Carolina.  Over the course of the investigation, law enforcement seized at least 23 firearms, and more than $250,000 in drug proceeds. The 14 defendants charged are: 

• Thomas Dewayne Simmons, Jr., 34, of Snellville, Georgia.
• Ruth Marie Duggar, 36, of Claremont, N.C.
• Kimberly Deann Bumgarner, 55, of Claremont, N.C.
• Cynthia Roxanne Shook, 34, of Catawba, N.C.
• Lowell Thomas Messer, 32, of Sherrills Ford, N.C.  
• Samantha Jean Taylor, 26, of Newton, N.C.
• Jason Keith Reichard, 38, of Newton, N.C. 
• Aaron Douglas Goodson, 29, of Maiden, N.C. (in custody on state charges)
• Priscilla Chapman Lambert, 33, of Hickory, N.C.  (in custody on state charges)
• Jonathan Corey Daniel, 31, currently incarcerated in the Georgia Department of Corrections.
• Tiffany Christmas Hirani, 33, currently incarcerated at the Clayton County        Sheriff’s Office Detention Center in Jonesboro, Georgia.
• James Kristoffer Cantley, 38, currently incarcerated at the Robert A. Detention Center in Lovejoy, Georgia.
• Brian Duane Martz, 40, currently incarcerated in the Georgia Department of Corrections.
• Michael James Notheisen, 34, currently incarcerated in the North Carolina Department of Corrections.

All 14 defendants are charged with conspiracy to traffic methamphetamine, which carries a statutory minimum prison term of ten years and a maximum term of life in prison, and a $10 million fine.  Some defendants face additional drug possession and distribution charges and/or related firearms offenses. (See chart below for a breakdown of federal charges and maximum penalties for each defendant). 

The charges contained in the indictment are allegations.  The defendants are presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.

In making today’s announcement U.S. Attorney Murray thanked the following agencies for their investigative efforts which led to federal charges: the DEA in Charlotte, Asheville, and Atlanta; the North Carolina State Bureau of Investigation; the North Carolina State Highway Patrol; the Catawba County Sheriff’s Office; the Newton Police Department; the Conover Police Department; the Maiden Police Department; the Hickory Police Department; the Longview Police Department; the Caldwell County Sheriff’s Office; the Granite Falls Police Department; the Lincoln County Sheriff’s Office; the Cleveland County Sheriff’s Office; the Huntersville Police Department; the Cornelius Police Department; the Mint Hill Police Department; the Pineville Police Department; the Charlotte Mecklenburg Police Department; the Monroe Police Department; the Taylorsville Police Department; the Gaston County Police Department; the Georgia Highway Patrol; the Franklin County Sheriff’s Office in Georgia; the Georgia Bureau of Investigation; the Georgia Department of Corrections; the Clayton County Sheriff’s Office in Georgia; and the Commerce Police Department in Georgia.

Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.                                 

 

DEFENDANT

COUNTS

CHARGE

STATUTORY PENALTIES

Jonathan Corey Daniel

a/k/a “Ambush”

a/k/a “Ambush Newage”

a/k/a “Orion Bls Newage”

1

 

Methamphetamine Conspiracy

10 years to life in prison, maximum fine of $10,000,000

 

23, 25

 

Distribution and Possess with Intent to Distribute Methamphetamine

10 years to life in prison, maximum fine of $10,000,000

Tiffany Christmas Hirani

a/k/a “Tiffany Christmas”

1

                               

Methamphetamine Conspiracy

10 years to life in prison, maximum fine of $10,000,000

 

11

Distribution and Possess with Intent to Distribute Methamphetamine

10 years to life in prison, maximum fine of $10,000,000

James Kristoffer Cantley

1

 

Methamphetamine Conspiracy

10 years to life in prison, maximum fine of $10,000,000

 

2, 8, 14

                               

Possess a Firearm in Furtherance of a Drug Trafficking Crime

5 years to life in prison, consecutive to a sentence imposed on a drug count,  maximum fine of $250,000

 

3, 9, 15

Possess Firearms by Felon

0 to 10 years in prison, maximum fine of $250,000

 

6, 10

 

Possess with Intent to Distribute Methamphetamine

10 years to life in prison, maximum fine of $10,000,000

 

7

Possess with Intent to Distribute Heroin

0 to 20 years in prison, maximum fine of $1,000,000

 

13

Possess with Intent to Distribute Methamphetamine

5 to 40 years in prison, maximum fine of $5,000,000

Aaron Douglas Goodson

1

 

Methamphetamine Conspiracy

10 years to life in prison, maximum fine of $10,000,000

 

10, 11, 18

 

 

Possess with Intent to Distribute Methamphetamine

10 years to life in prison, maximum fine of $10,000,000

 

12, 19

Possess Firearms in Furtherance of a Drug Trafficking Crime

5 years to life in prison, consecutive to a sentence imposed on a drug count,  maximum fine of $250,000

Cynthia Roxanne Shook

a/k/a “Roxi Johnson”

a/k/a “Roxi Shook

1

Methamphetamine Conspiracy

10 years to life in prison, maximum fine of $10,000,000

 

4

Distribution and Possess with Intent to Distribute Methamphetamine

0 to 20 years in prison, maximum fine of $1,000,000

 

5

Possession with Intent to Distribute Methamphetamine

10 years to life in prison, maximum fine of $10,000,000

Brian Duane Martz

a/k/a “B”

 

1

Methamphetamine Conspiracy

10 years to life in prison, maximum fine of $10,000,000

Priscilla Chapman Lambert

a/k/a “Priscilla Sweetp Chapman”

a/k/a “Sweet Pea”

a/k/a “Sweet P”                     

1

Methamphetamine Conspiracy

10 years to life in prison, maximum fine of $10,000,000

Thomas Dewayne Simmons, Jr

a/k/a “Tommy”

a/k/a “Tommy Simons”

1

Methamphetamine Conspiracy

10 years to life in prison, maximum fine of $10,000,000

 

23, 25

Distribution and Possess with Intent to Distribute Methamphetamine

10 years to life in prison, maximum fine of $10,000,000

Ruth Marie Duggar

a/k/a “White Girl”

1

 

Methamphetamine Conspiracy

10 years to life in prison, maximum fine of $10,000,000

 

24, 26

Possess with Intent to Distribute Methamphetamine

10 years to life in prison, maximum fine of $10,000,000

Kimberly Deann Bumgarner

a/k/a “Momma”

a/k/a “Momma Kim”

1

 

Methamphetamine Conspiracy

10 years to life in prison, maximum fine of $10,000,000

 

24, 26

Possess with Intent to Distribute Methamphetamine

10 years to life in prison, maximum fine of $10,000,000

Michael James Notheisen

a/k/a “Mike Bebollin”

a/k/a “BE BAllin”

a/k/a “B Ballin”

 

1

 

Methamphetamine Conspiracy

10 years to life in prison, maximum fine of $10,000,000

 

20, 28

Possess with Intent to Distribute Controlled Substances

5 to 40 years in prison, maximum fine of $5,000,000

 

21, 31

Possess with Intent to Distribute Heroin

0 to 20 years in prison, maximum fine of $1,000,000

 

22, 29, 32

Possess Firearms in Furtherance of a Drug Trafficking Crime

5 years to life in prison, consecutive to a sentence imposed on a drug count,  maximum fine of $250,000

 

27

Possess with Intent to Distribute Methamphetamine

10 years to life in prison, maximum fine of $10,000,000

 

33

Possess Firearms by Felon

0 to 10 years in prison, maximum fine of $250,000

Lowell Thomas Messer, Jr.

1

Methamphetamine Conspiracy

10 years to life in prison, maximum fine of $10,000,000

 

16

Possess with Intent to Distribute Methamphetamine

5 to 40 years in prison, maximum fine of $5,000,000

 

17, 34

 

 

Possess with Intent to Distribute Methamphetamine

10 years to life in prison, maximum fine of $10,000,000

Samantha Jean Taylor

1

 

Methamphetamine Conspiracy

10 years to life in prison, maximum fine of $10,000,000

Jason Keith Reichard

1

Methamphetamine Conspiracy

10 years to life in prison, maximum fine of $10,000,000

 

 

30

Possess with Intent to Distribute Methamphetamine

5 to 40 years in prison, maximum fine of $5,000,000

 

 

CHARLOTTE, N.C. – The U.S. Attorney’s Office has taken swift action to seize $48,742.50 in funds held at bank accounts allegedly used to perpetuate COVID-19 unemployment fraud, announced U.S. Attorney Andrew Murray.  The federal asset forfeiture seizure warrants executed by the United States Secret Service were unsealed by the Court today.

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.

In a memorandum issued on March 16, 2020, Attorney General William P. Bar directed U.S. Attorney’s Offices across the country to remain vigilant in detecting, investigating, and prosecuting wrongdoing related to COVID-19, and to prioritize the investigation and prosecution of criminal conduct exploiting the coronavirus epidemic.

In making today’s announcement, U.S. Attorney Murray said, “We will not allow scammers to profit from the COVID-19 crisis. Federal prosecutors in this Office have been working closely with federal, state and local authorities to ensure that we swiftly investigate possible misconduct related to the coronavirus, and use all enforcement tools available to end the fraud and punish the perpetrators.”

“Today’s announcement illustrates the Secret Service’s commitment to combating COVID-19 unemployment fraud,” said Special Agent in Charge DeMatteis. “The actions taken by the Secret Service and the U.S. Attorney’s Office prevented legitimate unemployment funds from getting into the wrong hands. The Secret Service will continue to work closely with the U.S. Attorney’s Office to investigate and prosecute criminals who attempt to defraud the critical COVID-19 relief programs and the American taxpayer.”

As alleged in the affidavit filed in support of the federal warrants, the seizures stem from an ongoing investigation of a COVID-19 unemployment fraud scheme that implicates bank accounts in the Western District of North Carolina.  These bank accounts were allegedly used to transfer money from unemployment benefit programs to fraudsters. Both the federal government and state governments have recently implemented unemployment benefit programs to disburse money to certain qualifying individuals who have become unemployed as a result of the recent coronavirus outbreak.  These programs provide means for impacted individuals to apply online for unemployment benefits and to receive much-needed funds.  In some instances, fraudsters have targeted these benefit programs and have exploited them for their benefit. 

According to allegations in the affidavit, to carry out the scheme, the fraudsters used victims’ stolen identities to apply for unemployment benefits online. The scammers then used the bank accounts of yet another set of unsuspecting individuals as “money mule” accounts, to receive and transfer the stolen benefits. “Money mule accounts” are bank accounts used by fraudsters as a pass through means of moving fraudulently-obtained funds. Oftentimes, the unwitting money mule victims, typically acting at the direction of the fraudsters, receive fraud proceeds and conduct financial transactions with those proceeds, or transfer the money from the money mule account to other bank accounts, often located overseas. In many instances, the account holders are not aware they are being exploited to carry out financial fraud.

As alleged in the federal affidavit, in some instances in this case, the individuals who opened the money mule accounts believed themselves to be engaged in online romantic relationships with the fraudsters.  The funds identified for seizure in this case were deposited as a result of fraud on coronavirus-related unemployment benefit programs, into many such money mule accounts, including accounts purportedly opened by individuals in the Western District of North Carolina.

Commending the investigative work of the United States Secret Service, U.S. Attorney Murray said, “I thank the U.S. Secret Service for acting quickly to stop this fraud. My office will continue to with work federal, state, and local law enforcement and stakeholder banks, to make sure domestic or foreign criminals do not profit from pillaging important COVID-19 relief programs.”

U.S. Attorney Murray also noted that the public plays an important role in stopping COVID-19 fraud and urged everyone to remain alert about possible coronavirus scams. “If you are engaged in an online-only relationship and your paramour asks you to open a new bank account, or use your existing account to transfer funds, think twice. A fraudster posing as a romantic online partner could be using you and your accounts as a repository to launder stolen money. Don’t let a scammer turn you into a money mule. Be extra vigilant about online scams, and if the circumstances are suspicious get in touch with law enforcement right away.” 

The U.S. Secret Service is in charge of the investigation, which is ongoing.  Assistant U.S. Attorney Benjamin Bain-Creed, of the U.S. Attorney’s Office in Charlotte, is handling the federal civil court proceedings.

The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic.  Under the leadership of Attorney General Barr, U.S. Attorneys appointed Coronavirus Fraud Coordinators to work with federal, state, local and tribal law enforcement partners to protect the public from scammers who are attempting to prey upon fears. If you think you are a victim of a scam or attempted fraud involving COVID-19, you can 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.  Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.

 

ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that William Richard Hilliard, Jr., 51, a former resident of Cleveland County and Cherryville, N.C., currently residing in Gastonia, was sentenced to 35 years in prison for secretly recording nude videos of underage females aboard his yacht.  In addition to the prison term imposed, Chief U.S. District Judge Martin Reidinger also ordered Hilliard to serve a lifetime of supervised release and to register as a sex offender upon his release from prison. Hilliard was also ordered to pay $88,476 as restitution to five victims and a $5,000 special assessment fee.

According to information contained in filed court documents and statements made in court, Hilliard was arrested on June 11, 2018, by Myrtle Beach, South Carolina law enforcement officers on charges of video voyeurism.  Hilliard was the owner of a yacht called “Yachts O’ Trouble,” and he had been discovered secretly recording nude videos of unsuspecting females aboard his yacht, including minor and adult guests. Court records show that as a result of the events surrounding his arrest, the FBI coordinated an extensive multi-state and multi-agency investigation. 

As Hilliard admitted in court documents, law enforcement discovered that, over the course of eight to ten years, Hilliard had secretly produced multiple secret recordings of at least 16 child victims at various locations in North Carolina, South Carolina, and Alabama, including aboard his yacht, in his homes, in various hotel rooms, and elsewhere.  Court records also show that, at times, Hilliard produced secret recordings of victims he had hired as babysitters for his young children, and used multiple hidden devices to record his victims from different angles while they were using the shower and changing clothes.  Some of the victims were as young as five years old. According to court records, also Hilliard engaged in sexual acts with one of the minor victims, which he secretly recorded. 

On April 22, 2019, Hilliard pleaded guilty to sexual exploitation of a minor and possession of child pornography. He is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney Murray thanked the FBI’s Charlotte Division, the Myrtle Beach Police Department, the Horry County Police Department, and the Cleveland County Sheriff’s Office for their investigation of this case with assistance from FBI Knoxville, FBI Birmingham, Homeland Security Investigations, the Cherryville Police Department and the Gastonia Police Department.   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.

ASHEVILLE, N.C. – Chief U.S. District Judge Martin Reidinger today sentenced Tanner Moren Eagle Larch, 30, of Cherokee, N.C., to 92 months in prison and three years of supervised release for a firearms offense, 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) in North Carolina, and Sheriff Chip Hall of the Jackson County Sheriff’s Office join U.S. Attorney Murray in making today’s announcement.

On April 4, 2013, Larch was sentenced to six and a half years in prison and three years of supervised release for a federal robbery conviction.  According to filed court documents and today’s sentencing hearing, on September 14, 2018, while Larch was still on federal probation, the Jackson County Sheriff’s Office was informed that an arrest warrant for Larch had been issued for a violation of the terms of his supervised release. Court records show that Larch had been seen on the campus of Smoky Mountain High School leaving the football stadium on the same day. Law enforcement located and attempted to arrest Larch, who dropped a firearm he possessed and fled on foot. After he fled the scene, Larch, holding a second firearm behind his back, approached five young males standing outside of a car in the parking lot behind the high school’s gymnasium. Following a brief tussle, one of the young men wrestled the firearm out of Larch’s hands, and Larch fled the scene again. Shortly thereafter, Larch was apprehended by law enforcement.

On January 7, 2020, a federal jury convicted Larch of two counts of possession of a firearm by a felon. Larch is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney Murray commended the ATF and the Jackson County Sheriff’s Office for their investigation of this case.  He also thanked District Attorney Ashley Welch for her office’s coordination over the course of the prosecution of this case.

Special Assistant United States Attorney (SAUSA) Alexis Solheim 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 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. 

CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that a federal jury sitting in Charlotte has convicted Luis Analberto Pineda-Anchecta, 38, a Honduran national, of kidnapping following a two-day trial. U.S. District Judge Robert J. Conrad Jr. presided over the trial. 

Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, and Chief Kerr Putney of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney Murray in making today’s announcement.

According to filed court documents, evidence presented at trial and witness testimony, on or about May 15, 2019, CMPD officers arrested Pineda-Anchecta on several state charges, including Assault on a Female and Communicating Threats against his ex-girlfriend, identified in court documents as F.M. Two days following his arrest, Pineda-Anchecta was released from state custody on bond. As trial evidence established, in the evening of May 21, 2019, F.M. was approached by two masked men as she was walking to her vehicle parked at her apartment complex in Charlotte.  The victim recognized one of the masked men as Pineda-Anchecta, who proceeded to grab the victim by the arm, stuff a cloth in her mouth, and then wrap a cord or rope around her head so the cloth would stay in place.  Pineda-Anchecta and the other masked man forced F.M. against her will into the passenger seat of a vehicle, and Pineda-Anchecta told F.M. “I love you and I’m going to kill you.” According to trial evidence, the other masked individual did not accompany Pineda-Anchecta and F.M. in the vehicle.  

Pineda-Anchecta then drove his vehicle on Lancaster Highway. Trial evidence established that while Pineda-Anchecta was driving, he maintained a tight grip on the plastic rope tied around the victim’s face.  After traveling a short while on Lancaster Highway, Pineda-Anchecta parked his vehicle on the side of the road near a wooden area and turned off the vehicle’s engine.  Pineda-Anchecta maintained his grip on the plastic rope around F.M.’s face, and pulled the victim out of the car. Witness testimony revealed that Pineda-Anchecta dragged the victim to wooded area off of Lancaster Highway with which he was familiar, as the defendant had gone fishing there on previous occasions.

Following a struggle between Pineda-Anchecta and F.M., the victim was able to escape and run into the middle of the highway, and was assisted by motorists who stopped to offer help.  According to trial evidence, the victim identified Pineda-Anchecta as the person who had assaulted her. Pineda-Anchecta left the scene on foot. After obtaining a search warrant, CMPD officers searched Pineda-Anchecta’s vehicle, from which they recovered a spool of plastic rope similar to the rope wrapped around the victim’s face during the course of the kidnapping. Law enforcement also located the victim’s phone in Pineda-Anchecta’s vehicle.

Pineda-Anchecta is currently in federal custody.  He was previously convicted of illegal reentry by a deported alien, and, on January 7, 2020, he was sentenced to seven months in prison.  The kidnapping charge carries a maximum term of life in prison. A sentencing date has not been set.  

In making today’s announcement U.S. Attorney Murray commended ICE’s Homeland Security Investigations and CMPD for their investigation of this case. He also thanked ICE’s Enforcement and Removal Operations for their assistance.

Assistant U.S. Attorneys Kenneth Smith and Regina Pack, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.

CHARLOTTE, N.C. - The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) today announced nearly $42 million in funding to support state-level law enforcement agencies in combating the illegal manufacturing and distribution of methamphetamine, heroin, fentanyl, carfentanil, and prescription opioids, of which $2,062,770 has been awarded to the North Carolina Department of Public Safety.

“The scourge of opioid and methamphetamine use continues to take a devastating toll on our nation’s communities,” said COPS Office Director Phil Keith.  “By providing these resources to law enforcement to help combat the further spread, the COPS Office is demonstrating our commitment to this Administration’s priority of reducing drug use and protecting our citizens from this public health and safety crisis.”

“I am pleased that the COPS office has awarded more than $2 million to the North Carolina Department of Public Safety,” said U.S. Attorney Murray.  “The funding announced today will bolster our continued efforts with our state law enforcement counterparts to investigate and disrupt drug trafficking rings that spread deadly substances like methamphetamine and heroin to communities across our state.”

“We are extremely grateful for this important funding which will enable us to enhance our law enforcement efforts at combating illegal drug trafficking and stemming the tide of dangerous drugs in our communities. These grant funds will further enable the State Bureau of Investigation to fulfill their public safety mission by leveraging important partnerships and maintaining their investigative expertise,” said Public Safety Secretary Erik A. Hooks.  

Drug overdose deaths and opioid-involved deaths continue to increase in the United States.  Deaths from drug overdose are up among both men and women, all races, and adults of nearly all ages, with more than three out of five drug overdose deaths involving opioids.  More than 130 people die every day in the United States after overdosing on opioids, while methamphetamine continues to be one of the most commonly misused stimulant drugs in the world and is the drug that most contributes to violent crime.

The COPS Office is awarding more than $29.7 million in grant funding to 14 state law enforcement agency task forces through the Anti-Heroin Task Force Program (AHTF).  AHTF provides three years of funding directly to state-level law enforcement agencies with multijurisdictional reach and interdisciplinary team (e.g., task force) structures, in states with high per capita rates of primary treatment admissions for heroin, fentanyl, carfentanil, and other opioids.  This funding will support the location or investigation of illicit activities through statewide collaboration related to the distribution of heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.

Through the COPS Anti-Methamphetamine Program (CAMP), the COPS Office is also awarding $12 million to 12 state law enforcement agencies.  These state agencies have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures.  State agencies are being awarded three years of funding through CAMP to support the location or investigation of illicit activities related to the manufacture and distribution of methamphetamine, including precursor diversion, laboratories, or methamphetamine trafficking.

The AHTF and CAMP funding has a tremendous impact on state investigative and seizure work.  During the five month period between October 2019 and February 2020, current AHTF grantees reported the seizure of over $4 million in cash and 1,213 firearms.  Similarly, for CAMP, grantees reported seizures of more than $7 million in cash and 1,577 firearms.

The complete list of Anti-Heroin Task Force Program award recipients, including funding amounts, can be found here:  https://cops.usdoj.gov/ahtf-award

The complete list of COPS Anti-Methamphetamine Program award recipients, including funding amounts, can be found here:  https://cops.usdoj.gov/camp-award

The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of approximately 135,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.

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                                                     

 

ASHEVILLE, N.C. – Today, U.S. District Judge Max O. Cogburn Jr. sentenced Jordan Cole Laws, 21, of Burnsville, N.C., to 12 years in prison on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.  Laws was also ordered to pay a $5,000 special assessment, to serve a lifetime of supervised release, and to register as a sex offender after he is released from prison.

Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, and Sheriff Gary Banks of the Yancey County Sheriff’s Office join U.S. Attorney Murray in making today’s announcement.

According to information contained in filed documents and statements made in court, in April 2019, law enforcement conducted an operation that included warrantless searches of convicted sex offenders in Yancey County, North Carolina. At the time, Laws was under supervision by North Carolina state probation for a 2018 conviction in Texas for Indecency with a Child. Court records show that during a search of Laws’ residence, law enforcement discovered on the defendant’s cell phone several videos and still images depicting child pornography, which led to the seizure of three cell phones that belonged to Laws. A forensic analysis of the seized devices revealed that Laws possessed several images depicting children engaging in sexually explicit conduct. On December 2, 2019, Laws pleaded guilty to possession of child pornography.

In making today’s announcement, U.S. Attorney Murray thanked HSI and the Yancey County Sheriff’s Office for conducting the 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 to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

CHARLOTTE, N.C. – Chief U.S. District Judge Martin Reidinger sentenced to prison two men responsible for the armed robberies of two cell phone stores located in Buncombe and Henderson Counties, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. 

Joining U.S. Attorney Murray in making today’s announcement is John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Sheriff Quentin Miller of the Buncombe County Sheriff’s Office, Sheriff Lowell S. Griffin of the Henderson County Sheriff’s Office, and Chief David Zack of the Asheville Police Department.

Shyleek Vyshonne Davidson, 21, of Hendersonville, N.C. was sentenced to 120 months in prison and five years of supervised release, and Okoye Unique Porter, 26, of Hendersonville, was sentenced to 151 months in prison and three years of supervised release.  The third co-defendant, Kristoff Michael Hunter, 25, of Asheville, will be sentenced at a later date.

According to filed documents and statements made in court, the men robbed at gunpoint two cell phone stores located in Asheville and in neighboring Hendersonville.  On May 19, 2019, Hunter and Davidson robbed the AT&T wireless store located at 335 Airport Road in Asheville. Court records show that Hunter and Davidson entered the store with their faces covered, pointed a firearm at an employee and ordered him to lie down while they proceeded to steal approximately $200 in cash from the register and at least 26 Samsung and LG phones from the store cabinets.

The next day, on May 20, 2019, at about 9:30 a.m., law enforcement responded to a robbery call made from the Verizon Wireless store located at 1602 Four Seasons Blvd in Hendersonville.  Court records show that all three defendants entered the store, brandished firearms at the store employees, and fled with approximately 157 stolen iPhones valued at $147,986, and $311 in cash. Law enforcement arrested the three men the same day, after locating them through a tracking device one of the store employees had slipped in the robbers’ bag.

Porter, Davidson and Hunter pleaded guilty to robbery of businesses affecting interstate commerce, also known as “Hobbs Act” robbery.  Davidson and Hunter also pleaded guilty to carrying and brandishing a firearm during a crime of violence and aiding and abetting. 

In making today’s announcement, U.S. Attorney Murray thanked the FBI, the Buncombe County Sheriff’s Office, the Henderson County Sheriff’s Office, and the Asheville Police Department for their investigation of this case.

Assistant U.S. Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.

 

 

ASHEVILLE, N.C. – Joseph Dwayne Jumper, 39, of Robbinsville, N.C., was sentenced today to 144 months in prison for the sexual abuse of a minor in Indian Country, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Martin Reidinger also ordered Jumper to serve a lifetime of supervised release, and to register as a sex offender after he is released from prison.

Chief Doug Pheasant, of the Cherokee Indian Police Department, joins U.S. Attorney Murray in making today’s announcement.

According to court documents and today’s sentencing hearing, between July and August 2018, Jumper, who is an enrolled member of the Eastern Band of Cherokee Indians, sexually abused a minor female entrusted in his care.  As Jumper previously admitted in court, the defendant sexually abused the victim on multiple occasions.  The sexual abuse took place in Graham County, within the boundaries of the Indian reservation. 

On January 3, 2020, Jumper pleaded guilty to two counts of abusive sexual contact of a child under 12. 

In making today’s announcement, U.S. Attorney Murray thanked the Cherokee Indian Police Department for their investigation of this case.

Assistant U.S. Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.

ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Tristan August Fleming, 32, of Hendersonville, N.C., was sentenced to 13 years in prison on drug charges.  In addition to the prison term imposed, Fleming was ordered to serve five years under court supervision upon completion of his prison term. 

Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. U.S. Attorney Murray in making today’s announcement.

Court records show that, in May 2018, Belgian Customs Officers intercepted a package addressed to “Taylor McKnight” that contained suspected narcotics, including MDMA, cocaine, ketamine, and LSD. Law enforcement determined that the address on the package was that of a packing and shipping business located in Asheville. After retrieving the illegal substances, law enforcement in the United States arranged a controlled delivery of the package. On June 11, 2018, Fleming entered the shipping business in Asheville and claimed the package. Law enforcement arrested Fleming shortly thereafter. Following a search of his vehicle, law enforcement located drugs in a hidden compartment in Fleming’s vehicle, a wallet containing multiple fraudulent driver’s licenses, and other drug paraphernalia. Elsewhere in the vehicle, law enforcement recovered thousands of dosages of LSD, and $1,020 in drug proceeds.

On October 22, 2019, Fleming pleaded guilty to possession with intent to distribute narcotics. Based on multiple prior drug trafficking convictions, Fleming was sentenced as a career offender.

In making today’s announcement, U.S. Attorney Murray thanked HSI and USPIS for leading the investigation, and commended the North Carolina Highway Patrol for their assistance with this investigation.

Assistant U.S. Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.  

CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced that Jihoon Sun, 48, of California, was sentenced to 75 months in prison and three years of supervised release for bank fraud and aggravated identity theft. U.S. District Judge Max O. Cogburn Jr. presided over yesterday’s sentencing hearing and also ordered Sun to pay $235,438 as restitution.

Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, joins U.S. U.S. Attorney Murray in making today’s announcement.

According to information contained in court documents and court proceedings, from November 2016 to May 2017, Sun and his co-conspirators used multiple victims’ stolen identities to execute a bank fraud scheme and to defraud several financial institutions.  Court records show that Sun and his co-conspirators stole the identities of legitimate bank account holders, including holders of home equity lines of credit (HELOCs), and used the stolen account holders’ identities to fraudulently obtain funds from the financial institutions through cash advances and cashiers’ checks. To perpetuate the fraud, Sun and others obtained fraudulent forms of identification in the identity victims’ names, including fake drivers’ licenses, fake paystubs, and fake proofs of insurance. Sun and his co-conspirators then deposited the stolen funds into other bank accounts, established using the stolen identities of another set of identity theft victims. These “straw accounts” were controlled by the conspirators, and were used to convert the funds to cash at bank branches located in Mecklenburg County. In this manner, the co-conspirators stole or attempted to steal more than $290,000 in cash and cashiers’ checks.

On July 2, 2019, Sun pleaded guilty to bank fraud conspiracy and aggravated identity theft. In making today’s announcement, U.S. Attorney Murray thanked USPIS for their investigation of this case and the Charlotte-Mecklenburg Police Department for their assistance.

Assistant U.S. Attorney William Bozin, of the U.S. Attorney’s Office in Charlotte, prosecuted the case. 

CHARLOTTE, N.C. – Today, U.S. Attorney Andrew Murray joined Attorney General William P. Barr and the entire Department of Justice in observing the 15th Annual World Elder Abuse Awareness Day, and to echo voices around the world

condemning elder abuse, neglect and financial exploitation.

“On this day, we shed a light on crimes perpetuated against older Americans and vow to continue to pursue relentlessly bad actors who exploit one of our nation’s most vulnerable populations. As U.S. Attorney, my mission is to prevent elder fraud through education and awareness, and bring to justice vile criminals who target seniors and inflict physical or financial harm upon the elderly,” said U.S. Attorney Murray.

In March 2019, U.S. Attorney Murray announced the Western District’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. Since then, the office has prosecuted cases that run the gamut of scams targeting older Americans, including international telemarketing scams, tech support scams, romance scams, investment schemes, and financial fraud exploiting infirm elderly victims.

U.S. Attorney Murray noted, “Every day, elderly Americans are bombarded with fraudulent robocalls, spam emails and texts messages from scammers seeking to exploit them and steal their hard-earned savings. As technology increases, so does our responsibility to protect less tech savvy older adults from con artists. We must all do our part to ensure that seniors are aware of all forms of fraud, and they are properly educated on how to protect themselves from clever scammers with cunning tactics.”

U.S. Attorney Murray further noted that the COVID-19 pandemic has created unprecedented challenges for our country and the world, but among those most severely affected by the threat of the novel virus are our senior citizens. As the world takes this day to remember the elderly during these uncertain times, U.S. Attorney Murray underscored the importance of staying vigilant in protecting seniors who are vulnerable and isolated from their families and loved ones by social distancing and quarantine restrictions, and remind the public that bad actors have immediately exploited this international tragedy to prey on the elderly through a whole host of scams and fraudulent schemes.

On this day dedicated to recognizing our seniors, the U.S. Attorney’s Office sends a strong message that we continue the fight to keep seniors safe, and we will aggressively prosecute fraudsters exploiting the Covid-19 pandemic and targeting seniors.

“Through the department-wide Elder Justice Initiative and our local efforts, we remain relentlessly committed to preventing and prosecuting fraud on America’s seniors,” said U.S. Attorney Murray.

More information about the U.S. Attorney’s Office Elder Justice Initiative can be located here. For more information on department-wide enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.

 

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.

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.

 

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.

 

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).

 

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.

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, 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. 

* * *

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.  

 

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.            

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.

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

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.

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, 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. 

 

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.

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.

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.

 

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

 

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.

* * *

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.

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, 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

 

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.

* * *

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.

 

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. 

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. 

 

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.