Western District of North Carolina
Press releases recorded for this federal judicial district.
Two High-Ranking Bloods Gang Leaders Sentenced to Twenty Years in Prison for Racketeering ConspiracyRead the Press Release
Two high-ranking leaders of the Nine Trey Gangsters set of the United Blood Nation (UBN or Bloods) street gang, including the “Godfather” of the set, who also served as “Chairman” of the UBN, and a second leader who held the rank of “Worldwide High” were each sentenced today to 20 years in prison for racketeering conspiracy.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, and Special Agent in Charge John A. Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.
Pedro Gutierrez, aka Magoo, Light and Inferno, 45, of New York City, New York, was sentenced by Chief Judge Frank D. Whitney to serve 20 years in prison. James Baxton, aka Frank White and Grown, 44, of New York City, New York, was also sentenced by Judge Whitney to serve 20 years in prison. Both of these sentences will be served consecutively to the defendants’ current New York State sentences. Pedro Gutierrez, James Baxton, and Cynthia Gilmore, aka Cynthia Young and Lady Bynt, 42, of Raleigh, North Carolina, had been convicted by a federal jury sitting in Charlotte on May 17, following a two-week trial. Cynthia Gilmore is awaiting sentencing.
“With today’s sentencings of two violent gang leaders, including the purported Godfather of the Nine Trey Gangsters, law enforcement has delivered yet another devastating blow to the Nine Trey Gangsters and the United Blood Nation,” said Assistant Attorney General Benczkowski. “The defendants committed crimes that spanned the East Coast, including trafficking deadly narcotics in North Carolina and New York and ordering a gang war in North Carolina. As demonstrated by the 61 defendants now adjudicated guilty in this case, when federal, state, and local law enforcement work together in sustained efforts, we can disrupt and erode violent prison and street gangs.”
“Drugs, thefts, guns, violent assaults, and murders are all crimes the Bloods commit every day to protect their turfs, increase their territory, control and recruit members, and intimidate rival gangs,” said U.S. Attorney Murray. “And all of it happens right here, in our neighborhoods, where honest, hard-working people are simply trying to raise their children without the fear of harm. We cannot overlook or underestimate the long-term impact of gangs on the well-being and prosperity of communities where gang activity is present. That is why the dismantling of criminal enterprises district-wide is both a priority for my office and a goal we share with law enforcement agencies throughout the Western District of North Carolina.”
In February 2017, President Trump directed the Department of Justice “to reduce crime in America,” and Attorney General Jeff Sessions has made violent crime reduction and eliminating gangs a priority during his tenure. In June 2018, the Attorney General announced the largest increase in Assistant U.S. Attorneys—311 new prosecutors, including eight in North Carolina—to combat violent crime and carry out other Department priorities.
Additionally, Attorney General Sessions last year announced a reinvigorated Project Safe Neighborhoods program aimed at reducing the rising tide of violent crime in America. The U.S. Attorney’s Office for the Western District of North Carolina is an active participant in PSN.
Deputy Attorney General Rod Rosenstein mentioned many of these announcements and more when he delivered remarks in August to the 17th Annual Gangs Across the Carolinas Conference, a conference which Attorney General Sessions delivered remarks to in August 2017.
“These leaders of the UBN thought they were untouchable, continuing to run their criminal enterprise from inside state prison,” said FBI Special Agent in Charge Strong. “The lengthy federal sentences they received today send a strong message to anyone who tries to fill the criminal void they leave behind. Do not be mistaken, we’ll come after you next with the full strength of our federal, local, and state law enforcement partners.”
According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star; and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members. The Nine Trey Gangster set of the UBN refer to themselves as “Billies.”
According to court documents and evidence presented at trial, the UBN is governed by a common set of 31 rules, known as “The 31,” which were originally written by the founders of the UBN. Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.
According to court documents and evidence presented at trial, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from “Scrap,” “1-Star General” through “5-Star General,” “Low,” “High,” and “Godfather.”
Based on evidence introduced during the trial, Gutierrez was a “Godfather” of the Nine Trey Gangsters and had served since 2003 as the “Chairman” of the council that governs the UBN. Gutierrez, together with James Baxton and Omari Rosero, considered themselves “the last ones that God put in power” over the UBN. As the Godfather of the set, Gutierrez, along with Baxton, conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections. Trial evidence also established that Gutierrez ordered a gang war in North Carolina in 2011, directing that members of the Bloods gang attack and kill members of a renegade gang called Pretty Tony. The war resulted in numerous injuries among inmates and the lockdown of five North Carolina prisons for six months.
Trial evidence also established that Baxton was a “Worldwide High” of the Nine Trey Gangsters and that, while incarcerated in the New York State Department of Corrections, Baxton trafficked heroin within the prison system and engaged in wire fraud by threatening the relatives of other incarcerated inmates.
In all, 61 defendants have been adjudicated guilty in this case, including the two defendants who were found guilty at trial and sentenced today; 58 defendants have previously pleaded guilty in this investigation. This includes 10 defendants in high-ranking leadership positions:
- Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of “High,” and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine;
- Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics. According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of “Low,” and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony. Coker was also recorded discussing a potential murder of a rival gang member. Coker was sentenced on June 18, to a term of 140 months in prison;
- Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of her plea agreement, Harrison admitted to holding the leadership rank of “High,” and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton. Harrison was sentenced on June 18, to a term of 32 months in prison;
- Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine. According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of “Low.” Haynes was sentenced on Aug. 15, to a term of 64 months in prison;
- Bobby Earl Hines, aka Swahili Red, 35, of North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Hines admitted to holding the leadership rank of “High”;
- Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud. According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of “High,” and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards. Lattibeaudiere was sentenced on June 19, to serve 56 months in prison;
- MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and conspiracy to possess with intent to distribute heroin, and according to the factual basis of his plea agreement admitted to holding the leadership rank of “Low;”
- Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy. During his plea, Omari Rosero admitted to holding the leadership rank of “High,” and to serving as an acting “Godfather” of the entire UBN. Rosero was sentenced on July 31, to a sentence of 87 months in prison, to be served federally after completing a sentence in New York State;
- Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty to racketeering conspiracy. Rosero admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be “faded straight up.” Porsha Rosero was sentenced on July 31, to serve 21 months in prison; and
- Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime. According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of “Low.” Wilson was sentenced on July 30, to serve 82 months in prison.
The following 33 defendants have also pleaded guilty and have been sentenced in this investigation:
- Sherman Devante Addison, aka Ace, 24, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy. Addison was sentenced on Aug. 15, to serve 33 months in prison;
- Freddrec Deandre Banks, aka Drec and Banga, 22, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Banks was sentenced on Aug. 14, to serve 33 months in prison;
- Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy. Blakeney was sentenced on July 31, to serve 18 months in prison;
- Shakira Monique Campbell, aka Lady Rage, 24, of Charlotte, North Carolina, pleaded guilty to possession of cocaine. Campbell was sentenced to serve eight months in prison;
- Alex Levi Cox, aka Quick, 28, of Loris, South Carolina, pleaded guilty to racketeering conspiracy. Cox was sentenced on Aug. 21, to serve 17 months in prison;
- Richard Diaz, aka Damu, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Diaz was sentenced on Aug. 15, to serve 33 months in prison;
- Christopher Dentre Hamrick, aka Red Dot, 29, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon. Hamrick was sentenced on May 30, to serve 64 months in prison;
- Lavaughn Antonio Hanton, aka Killem and Billy-D, 35, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Hanton was sentenced on Aug. 21, to 216 months in prison;
- Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Harrison was sentenced on June 25to serve 27 months in prison;
- Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy. Hicks was sentenced on May 31, to serve 24 months in prison;
- Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Hopper was sentenced on June 20, to serve 27 months in prison;
- Donl Lequintin Hunsucker, aka Remy, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Hunsucker was sentenced on Aug. 15, to serve 52 months in prison;
- Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Jackson was sentenced on Aug. 21, to serve 27 months in prison;
- Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy. Johnsom was sentenced on May 30, to serve 57 months in prison;
- Joe Tarpeh Johnson, aka JR, Big Pusha and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Johnson was sentenced on April 28, to serve 31 months in prison;
- Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Johnson was sentenced on July 9, to serve 18 months in prison;
- Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. King was sentenced on July 30, to serve 25 months in prison;
- David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Lowe was sentenced on May 29, to serve 24 months in prison;
- Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon. Lytle was sentenced on Aug. 22, to serve 46 months in prison;
- Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy. Manning was sentenced on July 31, to serve 21 months in prison;
- Travis McClain, aka Fridaay Daa Thuurteenth, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McClain was sentenced on Aug. 14, to serve 27 months in prison;
- Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McIntosh was sentenced on July 30, to serve 18 months in prison;
- D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McNeil was sentenced on June 20, to serve 33 months in prison;
- Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy. Omotosho was sentenced on May 29, to serve 33 months in prison;
- James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Pegues was sentenced on May 29, to serve 33 months in prison;
- Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy. Peterkin was sentenced on June 25, to serve 21 months in prison;
- Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Potts was sentenced on May 29, to serve 30 months in prison;
- Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Sattar was sentenced on Aug. 22, to serve 33 months in prison;
- Anthony Bernard Smith, aka Redd Lion, 25, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy. Smith was sentenced on April 23, to serve 44 months in prison;
- Cedric Surratt, aka Hollywood, 5-Star and Lingo, 30, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Surratt was sentenced on June 20, to serve 28 months in prison;
- Peatrez Lamar Teaste, aka P-Wheezy, 25, of Loris, South Carolina, pleaded guilty to racketeering conspiracy. Teaste was sentenced on Aug. 21, to serve 109 months in prison;
- Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Turner was sentenced on April 23, to serve 35 months in prison; and
- Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Watkins was sentenced on July 30, to serve 27 months in prison.
The following 15 defendants have also pleaded guilty and are awaiting sentencing in this case:
- Aaron Demitri Alexander, aka A Dawg, 25, of Charlotte, North Carolina, pleaded guilty on July 9, to racketeering conspiracy;
- Antarious Quashard Byers, aka Bang, 25, of Shelby, North Carolina, pleaded guilty on Aug. 28, to racketeering conspiracy;
- Renaldo Rodregus Camp, aka Rodeo and Drop, 40, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession with intent to distribute cocaine;
- Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking;
- James Walter Dowdle, aka Staxx, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and use of a firearm in furtherance of a crime of violence;
- John Paul Durant, aka JP, Glock and Gudda, 29, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Shamon Movair Goins, aka Rugie, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Jasmin Reikeem Hicks, aka Rude, 28, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;
- Juan Cruz Leon, aka Jefe, 22, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Terry Lavon Maddox, aka Turbo, 27, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and possession with intent to distribute cocaine base;
- Robert Allen McClinton, aka Trigga, 29, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and two counts of possession with intent to distribute cocaine base;
- Christopher Lashon Miller, aka Dro, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Christopher O’Brien Moore, aka Ratchet, 23, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty on Jan. 5, to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence; and
- Jhad Elijah Thorbourne, aka Flight, 24, of Charlotte, North Carolina, pleaded guilty on July 19, to racketeering conspiracy.
The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. Trial Attorneys Andrew L. Creighton and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Two High-Ranking Bloods Gang Leaders Sentenced to 20 Years for Racketeering ConspiracyRead the Press Release
CHARLOTTE, N.C. – Two high-ranking leaders of the Nine Trey Gangsters set of the United Blood Nation (UBN or Bloods) street gang, including the "Godfather" of the set, who also served as "Chairman" of the UBN, and a second leader who held the rank of "Worldwide High" were each sentenced today to 20 years in prison for racketeering conspiracy.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, and Special Agent in Charge John A. Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.
Pedro Gutierrez, aka Magoo, Light and Inferno, 45, of New York City, New York, was sentenced by Chief Judge Frank D. Whitney to serve 20 years in prison. James Baxton, aka Frank White and Grown, 44, of New York City, New York, was also sentenced by Judge Whitney to serve 20 years in prison. Both of these sentences will be served consecutively to the defendants’ current New York State sentences. Pedro Gutierrez, James Baxton, and Cynthia Gilmore, aka Cynthia Young and Lady Bynt, 42, of Raleigh, North Carolina, had been convicted by a federal jury sitting in Charlotte on May 17, following a two-week trial. Cynthia Gilmore is awaiting sentencing.
"With today’s sentencings of two violent gang leaders, including the purported Godfather of the Nine Trey Gangsters, law enforcement has delivered yet another devastating blow to the Nine Trey Gangsters and the United Blood Nation," said Assistant Attorney General Benczkowski. "The defendants committed crimes that spanned the East Coast, including trafficking deadly narcotics in North Carolina and New York and ordering a gang war in North Carolina. As demonstrated by the 61 defendants now adjudicated guilty in this case, when federal, state, and local law enforcement work together in sustained efforts, we can disrupt and erode violent prison and street gangs."
"Drugs, thefts, guns, violent assaults, and murders are all crimes the Bloods commit every day to protect their turfs, increase their territory, control and recruit members, and intimidate rival gangs," said U.S. Attorney Murray. "And all of it happens right here, in our neighborhoods, where honest, hard-working people are simply trying to raise their children without the fear of harm. We cannot overlook or underestimate the long-term impact of gangs
on the well-being and prosperity of communities where gang activity is present. That is why the dismantling of criminal enterprises district-wide is both a priority for my office and a goal we share with law enforcement agencies throughout the Western District of North Carolina."
In February 2017, President Trump directed the Department of Justice "to reduce crime in America," and Attorney General Jeff Sessions has made violent crime reduction and eliminating gangs a priority during his tenure. In June 2018, the Attorney General announced the largest increase in Assistant U.S. Attorneys—311 new prosecutors, including eight in North Carolina—to combat violent crime and carry out other Department priorities.
Additionally, Attorney General Sessions last year announced a reinvigorated Project Safe Neighborhoods program aimed at reducing the rising tide of violent crime in America. The U.S. Attorney’s Office for the Western District of North Carolina is an active participant in PSN.
Deputy Attorney General mentioned many of these announcements and more when he delivered remarks in August to the 17th Annual Gangs Across the Carolinas Conference, a conference which Attorney General Sessions delivered remarks to in August 2017.
"These leaders of the UBN thought they were untouchable, continuing to run their criminal enterprise from inside state prison," said FBI Special Agent in Charge Strong. "The lengthy federal sentences they received today send a strong message to anyone who tries to fill the criminal void they leave behind. Do not be mistaken, we’ll come after you next with the full strength of our federal, local, and state law enforcement partners."
According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since it was founded as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a "dog paw"; the acronym "M.O.B.," which stands for "Member of Bloods"; the words "damu," or "eastside"; the number five; the five-pointed star; and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members. The Nine Trey Gangster set of the UBN refer to themselves as "Billies."
According to court documents and evidence presented at trial, the UBN is governed by a common set of 31 rules, known as "The 31," which were originally written by the founders of the UBN. Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.
According to court documents and evidence presented at trial, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from "Scrap," "1-Star General" through "5-Star General," "Low," "High," and "Godfather."
Based on evidence introduced during the trial, Gutierrez was a "Godfather" of the Nine Trey Gangsters and had served since 2003 as the "Chairman" of the council that governs the UBN. Gutierrez, together with James Baxton and Omari Rosero, considered themselves "the last ones that God put in power" over the UBN. As the Godfather of the set, Gutierrez, along with Baxton, conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections. Trial evidence also established that Gutierrez ordered a gang war in North Carolina in 2011, directing that members of the Bloods gang attack and kill members of a renegade gang called Pretty Tony. The war resulted in numerous injuries among inmates and the lockdown of five North Carolina prisons for six months.
Trial evidence also established that Baxton was a "Worldwide High" of the Nine Trey Gangsters and that, while incarcerated in the New York State Department of Corrections, Baxton trafficked heroin within the prison system and engaged in wire fraud by threatening the relatives of other incarcerated inmates.
In all, 61 defendants have been adjudicated guilty in this case, including the two defendants who were found guilty at trial and sentenced today; 58 defendants have previously pleaded guilty in this investigation. This includes 10 defendants in high-ranking leadership positions:
Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of "High," and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine;
Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics. According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of "Low," and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony. Coker was also recorded discussing a potential murder of a rival gang member. Coker was sentenced on June 18, to a term of 140 months in prison;
Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of her plea agreement, Harrison admitted to holding the leadership rank of "High," and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton. Harrison was sentenced on June 18, to a term of 32 months in prison;
Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine. According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of "Low." Haynes was sentenced on Aug. 15, to a term of 64 months in prison;
Bobby Earl Hines, aka Swahili Red, 35, of North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Hines admitted to holding the leadership rank of "High";
Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort
Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud. According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of "High," and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards. Lattibeaudiere was sentenced on June 19, to serve 56 months in prison;
MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and conspiracy to possess with intent to distribute heroin, and according to the factual basis of his plea agreement admitted to holding the leadership rank of "Low;"
Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy. During his plea, Omari Rosero admitted to holding the leadership rank of "High," and to serving as an acting "Godfather" of the entire UBN. Rosero was sentenced on July 31, to a sentence of 87 months in prison, to be served federally after completing a sentence in New York State;
Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty to racketeering conspiracy. Rosero admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be "faded straight up." Porsha Rosero was sentenced on July 31, to serve 21 months in prison; and
Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime. According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of "Low." Wilson was sentenced on July 30, to serve 82 months in prison.
The following 33 defendants have also pleaded guilty and have been sentenced in this investigation:
Sherman Devante Addison, aka Ace, 24, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy. Addison was sentenced on Aug. 15, to serve 33 months in prison;
Freddrec Deandre Banks, aka Drec and Banga, 22, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Banks was sentenced on Aug. 14, to serve 33 months in prison;
Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy. Blakeney was sentenced on July 31, to serve 18 months in prison;
Shakira Monique Campbell, aka Lady Rage, 24, of Charlotte, North Carolina, pleaded guilty to possession of cocaine. Campbell was sentenced to serve eight months in prison;
Alex Levi Cox, aka Quick, 28, of Loris, South Carolina, pleaded guilty to racketeering conspiracy. Cox was sentenced on Aug. 21, to serve 17 months in prison;
Richard Diaz, aka Damu, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Diaz was sentenced on Aug. 15, to serve 33 months in prison;
Christopher Dentre Hamrick, aka Red Dot, 29, of Shelby, North Carolina, pleaded guilty
to racketeering conspiracy and to possession of a firearm by a convicted felon. Hamrick was sentenced on May 30, to serve 64 months in prison;
Lavaughn Antonio Hanton, aka Killem and Billy-D, 35, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Hanton was sentenced on Aug. 21, to 216 months in prison;
Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Harrison was sentenced on June 25to serve 27 months in prison;
Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy. Hicks was sentenced on May 31, to serve 24 months in prison;
Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Hopper was sentenced on June 20, to serve 27 months in prison;
Donl Lequintin Hunsucker, aka Remy, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Hunsucker was sentenced on Aug. 15, to serve 52 months in prison;
Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Jackson was sentenced on Aug. 21, to serve 27 months in prison;
Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy. Johnsom was sentenced on May 30, to serve 57 months in prison;
Joe Tarpeh Johnson, aka JR, Big Pusha and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Johnson was sentenced on April 28, to serve 31 months in prison;
Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Johnson was sentenced on July 9, to serve 18 months in prison;
Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. King was sentenced on July 30, to serve 25 months in prison;
David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy. Lowe was sentenced on May 29, to serve 24 months in prison;
Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon. Lytle was sentenced on Aug. 22, to serve 46 months in prison;
Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy. Manning was sentenced on July 31, to serve 21 months in prison;
Travis McClain, aka Fridaay Daa Thuurteenth, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McClain was sentenced on Aug. 14, to serve 27 months in prison;
Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McIntosh was sentenced on July 30, to serve 18 months in prison;
D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. McNeil was sentenced on June 20, to serve 33 months in prison;
Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy. Omotosho was sentenced on May 29, to serve 33 months in prison;
James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Pegues was sentenced on May 29, to serve 33 months in prison;
Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy. Peterkin was sentenced on June 25, to serve 21 months in prison;
Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Potts was sentenced on May 29, to serve 30 months in prison;
Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Sattar was sentenced on Aug. 22, to serve 33 months in prison;
Anthony Bernard Smith, aka Redd Lion, 25, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy. Smith was sentenced on April 23, to serve 44 months in prison;
Cedric Surratt, aka Hollywood, 5-Star and Lingo, 30, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Surratt was sentenced on June 20, to serve 28 months in prison;
Peatrez Lamar Teaste, aka P-Wheezy, 25, of Loris, South Carolina, pleaded guilty to racketeering conspiracy. Teaste was sentenced on Aug. 21, to serve 109 months in prison;
Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud. Turner was sentenced on April 23, to serve 35 months in prison; and
Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy. Watkins was sentenced on July 30, to serve 27 months in prison.
The following 15 defendants have also pleaded guilty and are awaiting sentencing in this case:
Aaron Demitri Alexander, aka A Dawg, 25, of Charlotte, North Carolina, pleaded guilty on July 9, to racketeering conspiracy;
Antarious Quashard Byers, aka Bang, 25, of Shelby, North Carolina, pleaded guilty on Aug. 28, to racketeering conspiracy;
Renaldo Rodregus Camp, aka Rodeo and Drop, 40, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession with intent to distribute cocaine;
Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking;
James Walter Dowdle, aka Staxx, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and use of a firearm in furtherance of a crime of violence;
John Paul Durant, aka JP, Glock and Gudda, 29, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
Shamon Movair Goins, aka Rugie, 28, of Charlotte, North Carolina, pleaded guilty to
racketeering conspiracy;
Jasmin Reikeem Hicks, aka Rude, 28, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;
Juan Cruz Leon, aka Jefe, 22, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
Terry Lavon Maddox, aka Turbo, 27, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and possession with intent to distribute cocaine base;
Robert Allen McClinton, aka Trigga, 29, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and two counts of possession with intent to distribute cocaine base;
Christopher Lashon Miller, aka Dro, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
Christopher O’Brien Moore, aka Ratchet, 23, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty on Jan. 5, to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence; and
Jhad Elijah Thorbourne, aka Flight, 24, of Charlotte, North Carolina, pleaded guilty on July 19, to racketeering conspiracy.
The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. Trial Attorneys Andrew L. Creighton and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Buncombe County Man Is Sentenced to Life in Prison for Daughter's MurderRead the Press Release
ASHEVILLE, N.C. – Today, Seth Willis Pickering, 38, of Leicester, N.C. was ordered to serve life in prison for killing his daughter, Lila Pickering, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. presided over the sentencing hearing.
On February 9, 2018, Pickering pleaded guilty to first-degree murder, and admitted to killing his daughter on September 9, 2016, within the boundaries of the Blue Ridge Parkway. Pickering further admitted that he killed Lila Pickering, who had not attained the age of 18 years and was under his care and control, willfully, deliberately, maliciously and with premeditation.
Pickering will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In handing down today’s sentence, Judge Cogburn said that "there was no excuse for what happened," and stated that Pickering "killed a child to punish social services and his wife."
U.S. Attorney Murray thanked the FBI, the National Park Service and the Buncombe County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorneys David Thorneloe and John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
New York Man Is Indicted for Scamming North Carolina Victims in Investment Fraud Scheme While He Was Being Prosecuted for Similar Scam in Another StateRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Rudolph Carryl, 67, of Oyster Bay, N.Y., has been indicted by a federal grand jury on charges of securities fraud, wire fraud, and money laundering. The federal indictment was filed under seal on August 22, 2018, and was unsealed yesterday after Carryl’s initial appearance in federal court in New York, following his arrest at a halfway house in Brooklyn, N.Y.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Office joins U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the indictment, Carryl, who held himself out as an investment advisor, operated Carryl Capital Management (CCM), an investment management firm with offices in New York City. CCM maintained a website that purported the firm adhered to rigorous risk control measures, and was dedicated to achieving the investment goals for its clients.
In or about February 2015, the indictment alleges that Carryl solicited victim M.G. to give Carryl money to invest in stock on M.G.’s behalf. M.G., a retired nurse who resided in North Carolina, was also Carryl’s childhood friend. Over the next couple of months, M.G. wired approximately $64,000 to an account controlled by Carryl, based on Carryl’s misrepresentations that M.G.’s money would be used to purchase stocks on M.G.’s behalf. The indictment alleges that rather than purchasing any stock as promised, Carryl used much of the victim’s money on personal and other unrelated expenses, and withdrew a substantial amount of it in cash. M.G. invested additional amounts with Carryl throughout 2015 and 2016.
The indictment further alleges that in or about May 2015, Carryl solicited victims W.B., a retired United States Air Force veteran, and his wife A.B., who resided in North Carolina, to invest approximately $350,000 in a purported investment fund being managed by Carryl (the Fund). To induce the retired couple to part with their money, Carryl claimed that he was a successful investment adviser who managed investments for the country of Saudi Arabia and that he was friends with wealthy celebrities. Carryl also lied by falsely promising that the victims’ money would be invested in safe investments and that they would not lose any principal. Carryl also told the retired couple that he was going to invest his own money in the Fund, which was not true. Furthermore, Carryl falsely claimed that if W.B. and A.B. sustained any investment losses, those would come out of Carryl’s investment first, which offered further “protection” to them.
After W.B. and A.B. wired their funds to Carryl, he sent an email to the couple that purported to identify the various stocks within their portfolio, which included well-known companies. The the indictment alleges that, contrary to his representations, Carryl did not buy all of the stocks as promised. Instead, he used much of W.B. and A.B.’s funds on personal and other unrelated expenses and to make substantial cash withdrawals.
In the months that followed, despite repeated requests by certain victims for statements reflecting the status of their investments, Carryl never provided any statements, and instead made numerous false claims that their investments were doing well and making money.
Carryl also never disclosed to his victims that he had been the target of a federal criminal investigation, nor that he later pleaded guilty to wire fraud charges related to a separate investment scheme in another state. In fact, the indictment alleges that, while Carryl was falsely telling W.B. of his intention to liquidate the victim’s investment so that Carryl could retire and travel the world, Carryl was awaiting sentencing in federal court.
Carryl was sentenced in New York on or about August 9, 2017, to 12 months and one day in prison. After his sentencing but before he reported to the federal Bureau of Prisons (BOP) to carry out his sentence, Carryl continued to be in contact with W.B., assuring W.B. that his investments were doing well, all the while failing to disclose any information about his conviction or his impending report date to BOP.
The details contained in this indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The securities fraud charge carries a maximum prison term of 20 years and a $5 million fine. Each count of wire fraud carries a maximum prison term of 20 years and a $250,000 fine. And, each count of transactional money laundering carries a maximum prison term of 10 years and a fine of up to $250,000.
In making today’s announcement U.S. Attorney Murray thanks the FBI for its investigation leading to today’s charges.
All charges contained in the indictment are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
Assistant United States Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Asheville, N.C. Man Sentenced to Nine Years for Possessing and Receiving Child Pornography from the Dark WebRead the Press Release
ASHEVILLE, N.C. – Carl Jack Hall, 51, of Asheville, N.C. was sentenced today by U.S. District Judge Martin Reidinger to 108 months in prison on charges of possession and receipt of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Reidinger ordered Hall to serve a lifetime of supervised release and to register as a sex offender.
According to court documents, the prosecution of this case stems from the FBI’s investigation into “Playpen,” a sophisticated child pornography website that operated on the anonymous “TOR” network. Using the dark web, Playpen’s more than 150,000 total members, anonymously stored and shared with each other videos and images that depicted children being sexually abused. Court records show that the website also included discussion forums pertaining to the sexual exploitation of children, including tips for grooming children and avoiding detection by law enforcement.
Court documents show that, over the course of the investigation, the FBI identified a member of the website who went by the name “Amoura,” later determined to be Hall. In July 2015, law enforcement conducted a search warrant at Hall’s residence and seized his laptop. A forensic analysis of the laptop revealed that Hall possessed hundreds of images of children being sexually abused. A web browser for the TOR network was also located on the computer, and contained a bookmark for the Playpen website. Hall initially lied to an FBI agent about his knowledge of TOR, and denied any knowledge of child pornography or of the Playpen website on his device.
On January 19, 2018, a federal jury convicted Hall of possession and receipt of child pornography.
In making today’s announcement, U.S. Attorney Murray commended the work of the FBI and highlighted the success of this operation which to date has led to the arrest of at least 350 U.S.-based individuals nationwide, the prosecution of 25 producers of child pornography, and the prosecution of at least 51 alleged hands-on abusers. Also, 55 American children who were subjected to sexual abuse have been rescued.
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 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.justice.gov/psc.
Charlotte Tax Return Preparer Pleads Guilty to Preparing False Tax ReturnsRead the Press Release
A Charlotte, North Carolina tax return preparer pleaded guilty today to aiding and assisting in the preparation of a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney R. Andrew Murray for the Western District of North Carolina.
According to documents and information provided to the court, from 2011 through 2017, Shawanda Elmore owned and operated C and W Tax Professionals, a tax return preparation business in Charlotte, North Carolina. Elmore fraudulently sought to inflate her clients’ tax refunds by claiming false education credits, as well as false itemized deductions and businesses expenses. Elmore’s conduct caused a tax loss to the Internal Revenue Service (IRS) of over $500,000.
Elmore faces a statutory maximum sentence of three years in prison, as well as a period of supervised release, restitution, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Murray commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Lauren Archer of the Tax Division, who are prosecuting the case.
Charlotte Jeweler Sentenced for Wire FraudRead the Press Release
CHARLOTTE, N.C. – Benjamin Abraham, 60, of Charlotte, was sentenced today by U.S. District Judge Robert J. Conrad, Jr. to 41 months in prison in connection with a $3.5 million investment scheme involving jewelry, precious metals and gemstones, announced the U.S. Attorney’s Office for the Western District of North Carolina. Abraham was also ordered to serve two years of supervised release and to pay $2,034,537 in restitution.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Office and David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) join the U.S. Attorney’s Office in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Abraham, a well-known Charlotte-area jeweler, operated a number of businesses engaged in the wholesale and retail sale of diamonds, precious metals and jewelry, including Benjamin Diamonds, LLC, Benjamin Jewelers, LLC, Global Trading LLC, G&I USA, LLC and other related entities. From at least December 2012 through May 2017, Abraham executed a financial fraud scheme involving investments in jewelry, precious metals and gemstones, among other things, and induced at least seven victim-investors to invest over $3.5 million, resulting in losses of more than $2 million.
To induce his victims to fund the investment scheme, filed court documents show that Abraham made a number of fraudulent representations, including that the victims’ money would be used for short-term investments in gold or other precious metals, to invest in diamonds and jewelry obtained from estates, and to buy other large diamonds which would be sold for profit. Abraham also lied to investors about his past successes and profits from engaging in such investments, misrepresented the security of the investments and made false representations about the rate of return and the duration of the investments. At times, Abraham also falsely represented that he had unique access to estate sales due to his connections and that he would be also be investing his own money.
Court records show that when victims asked about the status of their investments, Abraham gave numerous false explanations, and, at times, provided victims with checks from accounts that Abraham knew did not have sufficient funds to cover the checks and continued to lie when he was confronted about the dishonored checks.
According to court records, rather than invest the victims’ money as promised, Abraham used it to fund his lifestyle, to keep his struggling businesses afloat, to pay pre-existing debts, and to make Ponzi-style payments to other victim-investors.
In sentencing Abraham today, Judge Conrad emphasized the seriousness of Abraham’s crimes, the fact that Abraham continued to defraud victims after he was approached by federal law enforcement agents, and the need to specifically deter Abraham from future criminal conduct. Judge Conrad also cited the need provide general deterrence to those, like Abraham, who would engage in difficult to detect financial frauds.
The FBI and USPIS led the investigation. Assistant United States Attorneys Dallas Kaplan and Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Project Safe Neighborhoods Initiative Leads to Multiple ArrestsRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that after a ten-month joint investigation, FBI agents and CMPD officers arrested 11 individuals during an early morning round-up. Ten of those arrested face federal charges and one was arrested on state offenses. Two others currently in state custody have also been indicted federally, bringing the total number of those charged as part of this Project Safe Neighborhoods (PSN) initiative to 13.
“This morning’s round-up was the result of a joint law enforcement investigation into drug dealing and drug related criminal activity in and around the Lakewood Community in Charlotte,” said U.S. Attorney Murray. “Today’s coordinated action is part of our PSN strategy, which calls upon all levels of law enforcement to combine forces to reduce drug distribution and drug-fueled crimes in our neighborhoods, and to increase community safety.”
Those arrested today on multiple federal charges of distribution and possession with intent to distribute crack cocaine are: Ashley Bennet, 22, of Charlotte; Travis Burris, 21, of Charlotte; Charles Berry, 49, of Charlotte; Andre Booker, 23, of Charlotte, Lemuel Carr, 21, of Charlotte; Marcus Hammonds, 33, of Charlotte; Jonathan Means, 38, of Charlotte; Jermaine Monroe, 37, of Charlotte; Robert Fitzgerald Moore, 53, of Charlotte; and Dandre Morrison, 30, of Charlotte. Ashley Bennet, and Travis Burris are also charged with conspiracy to distribute and to possess with intent to distribute crack cocaine. Marcus Gregory was also arrested today on state charges.
Two individuals currently in state custody now face federal offenses. Shea Roseboro, 28, is charged with distribution and possession with intent distribute crack cocaine, and Kwame Hakeem Crawford, 27, is charged with possession of a firearm by a convicted felon.
The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray commends the FBI and CMPD for their investigative efforts, and thanks the U.S. Marshals Service for their assistance with this morning’s arrests. U.S. Attorney Murray also thanks the North Carolina Department of Public Safety’s Adult Correction and Juvenile Justice, and the Mecklenburg County District Attorney’s Office for their collaboration with this investigation.
Assistant U.S. Attorney Lambert Guinn of the U.S. Attorney’s Office in Charlotte is leading the prosecution.
Charlotte Man Is Sentenced to 10 Years in Prison on Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced today Anthony Latrel Player, 28, of Charlotte, to 10 years in federal prison for conspiracy to distribute and to possess with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Player was also ordered to serve four years under court supervision after he is released from prison.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Kerr Putney of the Charlotte Mecklenburg Police Department, join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, beginning in December 2016, law enforcement identified Player as a regional drug trafficker of a Drug Trafficking Organization (DTO) distributing heroin in the greater Charlotte area. Court records show that Player trafficked over 100 grams of heroin, often mixed with other drugs, to include Fentanyl. Court records also show that on January 26, 2017, Player sold approximately two grams of heroin for $200 to a 27-year-old female, who later died of a drug overdose. Player continued to sell heroin until he was arrested in July 2017. Court records show that over the course of the investigation, law enforcement determined that Player conducted drug sales at or near a playground in Charlotte, and, at times, he used the playground equipment as a designated drop-off area for drugs and money. On July 25, 2017, law enforcement executed a search warrant at Player’s residence, seizing narcotics, $545 in cash, and two loaded firearms.
In sentencing Player, Judge Cogburn commented on this nation’s opioid epidemic, and stated that Player’s drug cocktails had a devastating effect on the community.
Player is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Murray thanks the DEA and CMPD for leading this investigation. Assistant U.S. Attorney Sanjeev Bhasker, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
U.S. Attorney's Office Partners with Asheville Police Department and Buncombe County Sheriff's Office on Youth-Oriented Program, as Part of Project Safe NeighborhoodsRead the Press Release
ASHEVILLE, N.C. – United States Attorney Andrew Murray announced today that the U.S. Attorney’s Office for the Western District of North Carolina partnered with the Asheville Police Department (APD) and the Buncombe County Sheriff’s Office (BCSO) to conduct the Law Enforcement Guiding Adolescent Lives (L.E.G.A.L.) training program in Asheville. L.E.G.A.L. is a youth-oriented community outreach initiative, designed to foster positive interactions between young people and members of the law enforcement community.
The one-day program was held earlier today in Asheville, at the Buncombe County Training Center. Volunteer APD officers and BCSO deputies, and 18 young men selected from the Asheville-based youth development program My Daddy Taught Me That (MDTMT), participated in today’s training.
The APD and the BCSO worked closely with the U.S. Attorney’s Office to implement the program and to develop a curriculum that was informative, meaningful and fun for the participants.
“This program is extremely valuable for the young people and the volunteer law enforcement officers who participated in today’s training. The goal of this outreach effort is to provide a scenario for positive interactions between law enforcement officers and our youth, to foster positive relationships, and to promote mutual respect toward one another through education,” said U.S. Attorney Murray. “This experience can be eye-opening for all participants, leading to more effective, and ultimately safer, interactions between law enforcement officers and young people within our communities.”
“My Daddy Taught Me That is a program designed to uplift and support the development and education of youth and young males,” said MDTMT Founder Keynon Lake. “Our mission is to foster and empower boys to become healthy men, and to develop into the leaders of tomorrow. This is facilitated through education, hands-on activities, and participation in innovative and unique events, like L.E.G.A.L. Today’s training will have a positive and long-lasting effect on all the young men who participated.”
The four-hour program began with youth participants receiving legal and practical skills orientation. During this session, participants received basic legal background information from an Assistant United States Attorney, on searches related to traffic stops, public area encounters, and home encounters. Participants also received practical instruction on their rights and on interacting with law enforcement in a safe and positive manner.
Following the legal orientation, participants had an opportunity to utilize their newly-acquired skills by engaging with law enforcement officers in simulated police interactions. After each simulated interaction, participants and law enforcement officers engaged in role-reversals, designed to foster a better understanding of each group’s standpoint, and to offer an opportunity to share each other’s perspective. Following the simulated encounters, participants engaged in free dialogue with law enforcement volunteers during a roundtable luncheon.
In his opening remarks to the group, U.S. Attorney thanked everyone for participating in the training, and noted that L.E.G.A.L. is an example of the outreach component of the Western District’s Project Safe Neighborhoods (PSN) crime reduction program, which was reinvigorated by the Justice Department last year.
“Our overarching goal is to reduce violent crime and make our neighborhoods safer for everyone. To achieve that, we must develop and implement youth outreach programs throughout the Western District of North Carolina that enhance youth development and promote positive interactions between law enforcement and young people in the community.”
U.S. Attorney Murray also thanked Asheville Police Chief Tammy Hooper, Buncombe County Sheriff Van Duncan, and Keynon Lake for their support of the L.E.G.A.L. program and commended each for doing their part to keep our communities and help all our youth thrive.
MDTMT is a youth development program designed to support young males, ages 12 to 19, through advocacy, education, and mentoring. For more information on MDTMT, please visit http://mydaddytaughtmethat.org.
Repeat Offender Sentenced to 15 Years for Child PornographyRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger yesterday sentenced a repeat offender to 15 years in prison for receipt of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Nathaniel Guru Thompson, 31, of Asheville, was also ordered to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
“Thompson is the type of criminal that needs to be removed from society and put into a prison cell, where he can no longer harm children,” said U.S. Attorney Murray. “There is a misconception among some that viewing child pornography is a lesser offense. Let me set the record straight: viewing, sharing, or receiving images that depict children being sexually abused is a crime that is just as serious and heinous as of those who perpetrate the depicted sexual abuse on the children. I commend the Asheville Police Department, the North Carolina Internet Crimes Against Children (ICAC) Task Force, and the U.S. Probation Office for joining us in our efforts to protect the most vulnerable members of our society and bring perpetrators like Thompson to justice.”
According to court documents and information introduced at the sentencing hearing, Thompson was convicted in 2011 in the Western District of North Carolina of possession of child pornography. As part of his sentence, the Court ordered Thompson to serve a lifetime of federal supervised release. On July 10, 2017, law enforcement located at Thompson’s residence an internet enabled cell phone, which was in violation of the terms of his supervised release. After conducting a full forensic analysis of Thompson’s cell phone and a removable storage card, law enforcement determined that Thompson possessed more than 1,380 images of child pornography, and over 72 child pornography videos. Court records show that the images and videos, which Thompson had intentionally downloaded between May 1, and July 10, 2017, depicted infants, prepubescent children, and sadistic and masochistic conduct. Court records further show that Thompson had regularly viewed the images and the videos, as recently as July 10, 2017, which is the date the device was seized by law enforcement.
Thompson pleaded guilty to receipt of child pornography in March 2018. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The Asheville Police Department conducted the investigation. In making today’s announcement U.S. Attorney Murray thanks the U.S. Probation Office and the North Carolina Internet Crimes Against Children (ICAC) Task Force for their invaluable assistance with the case. The U.S. Attorney’s Office in Asheville was in charge of the prosecution.
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.
Last of Three Defendants Sentenced to More Than Eight Years for Robbing Elderly Victim on Indian ReservationRead the Press Release
ASHEVILLE, N.C. – Kasey Lynn Keffer, 40, of Sylva, N.C., was sentenced today to 100 months in prison and three years of supervised release on robbery charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Keffer’s co-defendants, Mitchum Scott Turpin and Tillmon Gene Fortner, were previously sentenced to 120 and 78 months in prison, respectively, for their involvement in the robbery.
Chief Doug Pheasant, of the Cherokee Indian Police Department, joins U.S. Attorney Murray in making today’s announcement.
According to court documents and court proceedings, on October 29, 2017, the three co-defendants met at Keffer’s residence in Sylva, N.C., and discussed being short of money. Keffer identified the victim, a 72-year-old male and an enrolled member of the Eastern Band of Cherokee Indians, as someone who had money. Later the same day, Keffer drove Turpin and Fortner to the victim’s apartment, located within the Indian reservation in Cherokee, N.C. Turpin, followed by Fortner, entered the victim’s apartment, where Turpin pointed a pistol at the victim and robbed him of $762. Turpin then ordered the victim into a closet. Keffer, Turpin and Fortner fled the scene in Keffer’s vehicle, and were apprehended shortly thereafter. Court records show that law enforcement later determined Turpin’s pistol to be a pellet gun.
All three defendants previously pleaded guilty to robbery charges. They are currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the Cherokee Indian Police Department for their investigation of the case and the Maggie Valley Police Department for their assistance.
Special Assistant United States Attorney Justin Eason, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Buncombe Co. Man Sentenced to More Than 11 Years on Drug ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Timothy Lane Plemmons, 35, of Fairview, N.C. was sentenced to 138 months in prison for possession with intent to distribute methamphetamine. U.S. District Judge Martin Reidinger also sentenced Plemmons to five years of supervised release upon completion of his prison term. Plemmons’ previous convictions in North Carolina, including numerous assault convictions, contributed to his sentence.
“After multiple encounters with our justice system, the Court determined that Plemmons’ drug dealing and repeated criminal conduct pose a danger to our community, and handed down a lengthy prison term. My Office is committed to increasing public safety by identifying repeat offenders for federal prosecution, and removing them from our streets by securing lengthy prison terms,” said U.S. Attorney Murray.
According to today’s sentencing hearing and documents filed with the Court, on October 26, 2016, during a probation search at Plemmons’ residence, law enforcement discovered methamphetamine and digital scales. An analysis of the seized methamphetamine by the Drug Enforcement Administration (DEA) determined that it weighted more than 290 grams and had a purity level of over 99%. Plemmons pleaded guilty to the drug charge on February 28, 2018.
Plemmons is currently in custody and will be transferred to the custody of the federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanks the DEA, the Buncombe County Sheriff’s Office, and the North Carolina Division of Adult Correction and Juvenile Justice for their investigation of this case.
Assistant United States Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
Florida Computer Store Operator Is Sentenced to 15 Months for Wire FraudRead the Press Release
CHARLOTTE, N.C. – Alan F. Luboff, 51, of Parkland, Florida, was sentenced yesterday by U.S. District Judge Max O. Cogburn, Jr. to 15 months in prison and three years of supervised release on wire fraud charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Cogburn also ordered the defendant to pay restitution in the amount of $119,900.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina joins U.S. Attorney Murray in making today’s announcement.
According to documents filed with the Court and yesterday’s sentencing hearing, Luboff was the operator of “Triple Play Sales,” a computer store located in Coral Springs, Florida. As part of his operation of Triple Play Sales, Luboff purchased and sold computer products and earned commission on those transactions. Court records show that on January 25, 2018, Luboff emailed a past business associate, identified in court documents as “S.F.,” proposing a transaction to help Luboff finance 600 central processing units (CPUs). S.F. is a business owner and resident of Cornelius, N.C.
According to court records, Luboff falsely represented to the victim that if S.F. gave him $131,400 to help purchase the CPUs, Luboff would provide S.F. with a $20,000 profit within one week. To further induce S.F. to give him the money, Luboff lied to the victim and said that he was going to invest $30,000 of his own money to complete the transaction. The victim wired $131,400 to Triple Play Sales in accordance with Luboff’s instructions.
According to court records, contrary to what he told S.F., Luboff did not have a proposed transaction for CPUs lined up, and Luboff had no intention of using S.F.’s money to purchase CPUs. Rather, Luboff spent S.F.’s money on personal expenditures, such as to pay for car insurance and law care expenses, among other things.
When S.F. confronted Luboff about his failure to return S.F.’s principal and income from the transactions, Luboff told the victim a series of lies, including that federal law enforcement agents had frozen the money because a party to the purported transaction had business overseas.
In handing down Luboff’s sentence, Judge Cogburn said that the defendant engaged in “classic lulling,” and that the sentence is important to deter others. Judge Cogburn also increased the defendant’s sentencing range because the defendant caused falsified documents to be submitted to the government during the course of the investigation.
Luboff will be ordered to report to the federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanks the FBI for investigating the case, and the Cornelius Police Department for their invaluable assistance over the course of the investigation.
Assistant United States Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charlotte Man Sentenced to More Than Three Years in Connection with Fraudulent Shipping Services SchemeRead the Press Release
CHARLOTTE, N.C. – Today, Ernest Keith. 51, of Charlotte, was sentenced by U.S. District Judge Max O. Cogburn, Jr. to 41 months in prison and two years of supervised release in connection with a fraudulent shipping services scheme, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Cogburn also ordered the defendant to pay restitution totaling $721,707.37.
David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service, joins U.S. Attorney Murray in making today’s announcement.
According to filed documents and statements made in court, Keith executed a mail fraud scheme that defrauded FedEx Corporation (“FedEx”) and individuals throughout the United States, by purportedly offering shipping services to customers at reduced prices. Court records show that, from February 2012 to March 2016, Keith used multiple addresses in and around Charlotte to create FedEx Freight shipping accounts for various sham companies. Keith then solicited customers via the internet, and induced them to use his purported shipping services at a reduced cost. Customers paid Keith for the purported shipping services via various money transmitting services, including but not limited to, Western Union, Moneygram, and Paypal. Using the fraudulent FedEx Freight accounts he had created for his sham companies, Keith arranged to have the customers’ shipments picked up by FedEx, but instead of paying FedEx for their shipping services, Keith kept the customers’ money.
Court records show that when FedEx began holding shipments it identified as associated with Keith’s sham companies, Keith purported to make payments via telephone, which were later rejected by the bank due to insufficient funds. Court records show that, after Keith’s scheme began to unravel and he was no longer able to use companies, accounts, or addresses associated with him, Keith fraudulently arranged shipments using the name and/or billing address of an existing FedEx Freight customer, which had no affiliation with Keith or the shipper, resulting in the invoices being erroneously sent to that unaffiliated company.
Court records show that Keith induced approximately 200 individuals to use his purported shipping services to arrange for more than 390 shipments. Keith also used more than 20 different FedEx accounts he created to facilitate his shipping services scheme, as well as multiple accounts associated with unrelated third parties, resulting in a loss of more than $680,000.
Keith is currently in custody and will be transferred to the custody of the federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanks USPIS for their investigation of this case.
Assistant United States Attorneys Jenny G. Sugar and Maria Vento, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
# # #
Asheville, N.C. Man Formally Indicted with Second Degree MurderRead the Press Release
ASHEVILLE, N.C. – A criminal bill of indictment was returned yesterday by a federal grand jury sitting in Asheville, charging Derek Shawn Pendergraft, 20, of Asheville, N.C., with second degree murder for killing a co-worker, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Pendergraft was previously arrested on a federal criminal complaint in connection with the murder.
U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Neal D. Labrie, Chief Ranger of the Blue Ridge Parkway; and Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI).
According to allegations contained in the indictment and the filed criminal complaint, on the evening of July 24, 2018, Pendergraft, an employee of the Pisgah Inn on the Blue Ridge Parkway, reported that a co-worker, identified in court documents as “S.E.,” was missing. Court documents allege that when initially interviewed by investigators, Pendergraft stated that he and S.E. both got off work shortly after 4:00 p.m., and decided to go for a hike on an unnamed trail near the employee housing area of the Pisgah Inn. Pendergraft stated that shortly after starting their hike it began to rain, and S.E. decided to return to the housing area while he continued to hike. Court documents allege that Pendergraft stated that on his way back, upon reaching the point where he last saw S.E., Pendergraft saw S.E.’s umbrella and hat lying on the ground. Pendergraft informed the management staff at the Pisgah Inn that she was missing. Rangers and first responders searched the area and located S.E.’s body lying off an embankment, near a trail, within the boundary of the Blue Ridge Parkway, in Transylvania County, in the Western District of North Carolina.
According to allegations contained in the charging documents, on the evening of July 25, 2018, the manager of the Pisgah Inn contacted law enforcement and advised that Pendergraft was in her office and had made statements regarding the death of S.E. Law enforcement arrived at the Pisgah Inn, interviewed Pendergraft, and arrested him shortly thereafter in connection with S.E.’s murder.
Pendergraft is currently in custody. The second degree murder charge carries a maximum penalty of life in prison.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the National Park Service, the FBI, the SBI, the Transylvania County Sheriff's Office, the Haywood County Sheriff's Office, and the Cruso Fire Department for their respective work and assistance in this case.
The prosecution is being handled by Assistant U.S. Attorneys Don Gast and John Pritchard, of the U.S. Attorney’s Office in Asheville.
Ongoing Federal Investigation Leads to Charges Against Three Former Top Buncombe County OfficialsRead the Press Release
ASHEVILLE, N.C. – Today, a federal grand jury in Asheville returned a criminal bill of indictment, charging three former top Buncombe County officials, Wanda Skillington Greene, 67, Jon Eugene Creighton, 66, and Amanda (Mandy) Louise Stone, 59, all of Buncombe County, with wire fraud and aiding and abetting; conspiracy to commit an offense against the United States; receipt of bribes and kickbacks and aiding and abetting; and federal program fraud and aiding and abetting, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
“Rooting out public corruption at all levels of government is one of my Office’s most critical responsibilities,” said U.S. Attorney Murray. “I want to thank the FBI, IRS-Criminal Investigation Division, and the North Carolina State Bureau of Investigation for their incredible diligence and commitment to conducting a thorough and objective investigation, which has led to today’s indictment.”
“When public officials put aside the best interest of the American public and choose to line their own pockets, we are all impacted. These type of crimes are at the center of the fight against public corruption. The FBI is dedicated to working with our law enforcement partners in the Western District of North Carolina to root out public corruption at any level of office,” said John Strong, Special Agent in Charge of the FBI Charlotte Field Office.
“The SBI considers investigations involving violations of the public trust to be among our highest priority cases. We were privileged to work with the FBI, IRS-CI and the U.S. Attorney’s Office of the Western District of North Carolina to hold these defendants accountable for their actions,” said Director Robert L. Schurmeier of the North Carolina State Bureau of Investigation (SBI).
According to allegations contained in the 32-count criminal bill of indictment:
Wanda Greene was appointed as County Manager for Buncombe County (the County) in 1997, and remained in that position until her retirement in June 2017. As County Manager, Greene had the authority to approve the awarding of certain contracts between the County and private contractors, including contracts for engineering and consulting services.
Creighton began working for Buncombe County in March 1982. From 1985 until he retired in December 2017, Creighton was the Director of the County’s Department of Planning and Development. As part of his duties, Creighton negotiated contracts between the County and private contractors, and was responsible for signing such contracts on behalf of the County. From 1997 until his retirement, Creighton also had a dual appointment as Assistant County Manager.
Stone began working for Buncombe County in the 1980s. In 1994, she became the Assistant Director of County’s Department of Social Services, and later became Department’s Director in 2001. Beginning 2005, Stone also had a dual appointment, along with Creighton, as Assistant County Manager. She held both positions until she became County Manager upon Greene’s retirement. Stone retired from the County in June 2018.
An unnamed individual, identified in the indictment as “the Contractor,” was a licensed Professional Engineer. From the mid-1980s through 2018, the Contractor was the agent and contractor for three businesses (Company A until 2014, Company B during 2014 through 2016, and his own company, Company C, from 2014 through 2018). During the relevant time period, the Contractor obtained a combined total of more than $15 million in contracts with Buncombe County for consulting and engineering services.
During the relevant time period, Greene, Creighton and Stone used their official positions to enrich and benefit themselves, and, in doing so, they deprived Buncombe County citizens of their right to the honest services of the defendants. The kickback and bribery scheme the defendants engaged in involved, among other things, multiple, all-expense paid trips, meals, tickets to sporting events, and spa treatments paid for by the Contractor. The defendants solicited and accepted these gifts, payments, and other things of value from the Contractor, in exchange for awarding County contracts to the Contractor and the businesses he was affiliated with at the time.
Prior to 2014, Greene, Creighton, Stone, and other County personnel, went on trips that were in some way connected to legitimate County business. During these trips, the Contractor provided them with such things of value as expensive meals, wine, and other excursions. By 2014, Greene, Creighton, and Stone began to solicit and accept trips, valuable gifts, and other things of value from the Contractor that were entirely unrelated to any legitimate County business. The all-expense paid pleasure trips were to destinations within the U.S. such as Key West, Boston, Martha’s Vineyard, Napa Valley, and the Grand Canyon, and to international cities, including Vienna, Budapest, Cartagena, and Vancouver. At some time in 2015, Greene prepared a written list of specific places and dates she wanted to travel, and instructed Creighton to pass the list to the Contractor, which Creighton did. On June 6, 2016, during a text message exchange with Creighton and Stone about future trips to be paid by the Contractor, Greene wrote: “Agent needs to know we love and want pool and dinner on island . . . . We should think Gulf Coast or Bahamas for January trip and celebrate Mandy’s birthday at a new place.”
On some occasions, the defendants charged the County directly for airfare for trips that coincided with official meetings happening in the vicinity. However, the majority of the travel arrangements were made using the Contractor’s credit card information, which the defendants had access to, or, in Creighton’s case, using the Contractor’s actual credit card. During these trips, the Contractor would generally charge the additional expenses to his credit cards when he accompanied the County employees. For the trips during which the Contractor did not accompany the County employees, the defendants used a copy of the Contractor’s credit card to pay for any travel expenses they incurred.
At other times, in order to earn extra rewards points, Creighton used his own credit card to pay for lodging and other expenses, for which he was later reimbursed by the Contractor. As another way to help Creighton earn more rewards points, during some of the trips, the Contractor stayed at separate hotels, paid for the rooms using Creighton’s credit card, and then reimbursed Creighton for those charges. In order for the Contractor and Creighton to be able to use each other’s credit cards, Greene and Creighton caused personnel in the County’s Human Resources Department to create false official Buncombe County employee identification cards, one with the Contractor’s photograph but with Creighton’s name and title, and the other with Creighton’s photograph but with the Contractor’s name and a false title as a County employee.
In addition to receiving these all-expense paid vacations from the Contractor, the defendants also took advantage of these trips to defraud the County in at least two other ways: First, the defendants did not use annual leave for these trips, but rather falsely claimed that they traveled on official County business, and claimed to have worked for the duration of the trip. This enabled them to preserve their hours of annual leave, which they later “sold” to the County, thereby receiving monetary payments to which they were not legally entitled.
Specifically, at various times between 2011 and 2017, the County paid Greene more than $360,000 for approximately a total of 3,216 hours of her unused leave, some of which was related to these trips. Similarly, Stone received more than $130,000 from the County for unused leave between 2007 and her retirement in 2018, and Creighton received more than $89,000 for unused leave between 2011 and his retirement in 2017. A portion of their unused hours for which they were paid was related to these trips.
The second way in which the defendants used their trips to defraud the County was by submitting reimbursement requests for the cost of meals and incidental expenses they supposedly incurred during their travel, even though their meals and expenses were actually being paid for by the Contractor.
Furthermore, Buncombe County often unwittingly funded the briberies and kickbacks of its own officials. The Contractor kept detailed internal records of the costs of the tickets, lodging, meals, and other benefits that he provided to the defendants on each trip. The Contractor then tied these expenses to the various projects for which he had obtained contracts with the County on behalf of Companies A, B, and C. The Contractor often sent invoices to, and was reimbursed by, the County, in amounts approximate of those travel expenses, claiming that the invoices were for the completion of specific portions of the relevant contract, instead of the improper expenditures. Thus, by paying these invoices, which often required Creighton’s approval, the County was essentially reimbursing the Contractor for the cost of the kickbacks to its County officials.
In addition to the criminal charges, the indictment contains a notice of forfeiture and probable cause, seeking a forfeiture money judgment against the defendants in the amount of at least $400,000, which is the amount constituting the proceeds of the violations alleged in the indictment.
Greene, Creighton, and Stone have been ordered to appear on a summons. Each wire fraud and aiding and abetting charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The conspiracy charge carries a maximum prison term of five years and a $250,000 fine. The receipt of bribes and kickbacks and aiding and abetting charge and the federal program fraud charge each carry a maximum prison term of 10 years and a $250,000 fine.
Additional Charges Brought Against Wanda Greene
A separate superseding indictment also charges Greene with six counts of tax fraud, in addition to the pending wire fraud, federal program fraud, and money laundering charges filed against her on June 5, 2018, in connection with a $2.3 million scheme involving the purchase of whole life insurance policies for herself and other county employees using misappropriated Buncombe County funds.
The superseding indictment alleges that Wanda Greene filed with the IRS false federal tax returns for years 2012 through 2017. Specifically, the indictment alleges that, for each corresponding year, Greene filed false Individual Income Tax Returns, Forms 1040, which misstated her taxable income, and failed to report to the IRS additional income she received through her embezzlement and whole life insurance policies schemes.
Also pending, are the federal charges filed against Greene in April 2018, for misusing government credit cards to make approximately $200,000 worth of improper purchases.
All charges contained in the indictments are allegations. The defendants are innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray commended the work of the FBI, IRS-CI and the SBI for their investigation of this case, and noted that the investigation into corruption within the Buncombe County Government is ongoing.
Assistant United States Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
Former TSA Officer Sentenced to 25 Years on Drug & Gun ChargesRead the Press Release
CHARLOTTE, N.C. – United States Attorney Andrew Murray announced today that a former Transportation Security Administration (TSA) Officer was sentenced to 25 years in prison on drug trafficking conspiracy and gun charges. U.S. District Judge Robert J. Conrad, Jr. also sentenced Jamie Blunder, 50, of Charlotte, to five years of supervised release.
According to filed court documents, exhibits entered at Blunder’s trial, witness testimony, and today’s sentencing hearing, from 2002 to 2016, Blunder was part of a drug conspiracy responsible for trafficking large quantities of cocaine and crack cocaine. Blunder and his network of co-conspirators transported and distributed the narcotics in Charlotte, Greensboro, N.C., Greenville, N.C., and elsewhere. According to court records, Blunder did not utilize the Charlotte Douglas Airport to traffic narcotics, though, at times, he relied on his TSA position to avoid law enforcement detection while travelling between and within, the Jamestown, N.C., High Point, N.C. and Greensboro areas. Over the course of the investigation, law enforcement seized at least eight firearms, more than two kilograms of cocaine and more than $150,000 in cash.
On July 7, 2017, a federal jury convicted Blunder of conspiracy to distribute and possession with intent to distribute cocaine and crack cocaine, and possession of a firearm in furtherance of a drug trafficking crime.
Four of Blunder’s co-conspirators have already been sentenced. Aaron Dixon, 41, of Greenville, N.C., was sentenced to 75 months in prison and three years of supervised release; David Pate, 45, of High Point, was sentenced to 67 months in prison and three years of supervised release; Samuel Little, 60, of Greensboro, was sentenced to 60 months in prison and two years of supervised release; and Irvin Lampley, 58, of Greensboro, was sentenced to 21 months in prison and three years of supervised release.
In making today’s announcement, U.S. Attorney Murray thanked the FBI for leading the investigation, the North Carolina Highway Patrol, the Charlotte Mecklenburg Police Department, and TSA for their invaluable assistance with this case.
Assistant U.S. Attorneys Lambert Guinn and Dana Washington of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
Haywood Co. Woman Sentenced to 15 Years on Drug and Gun ChargesRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Brandy Marie Grogan, 36, of Waynesville, N.C. to 15 years in prison and five years of supervised release on drug and gun charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by Wayne Dixie Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Sheriff Greg Christopher of the Haywood County Sheriff’s Office, Chief William Hollingsed of the Waynesville Police Department, and Chief Russell Gilliland of the Maggie Valley Police Department.
According to filed court documents and today’s sentencing hearing, in early 2017, law enforcement learned that Grogan was selling and distributing methamphetamine in and around Haywood County. On January 17, 2017, Haywood County law enforcement conducted a traffic stop of the vehicle Grogan was driving. Inside her vehicle, law enforcement located a black bag which contained a large amount of methamphetamine. Elsewhere in the vehicle, law enforcement found other narcotics, including cocaine and marijuana, and $4,376 in cash. Officers also recovered from Grogan a .22 magnum caliber handgun. Law enforcement executed a search warrant at Grogan’s residence and seized scales, drug paraphernalia, six handguns and two shotguns. A stolen handgun was later recovered from inside the glove box of Grogan’s vehicle. Grogan was charged with state criminal offenses in connection with this incident.
According to court records, on July 20, 2017, law enforcement stopped Grogan for driving above the speed limit in Haywood County. Law enforcement searched Grogan’s vehicle and located a black bag in the passenger side floorboard that contained methamphetamine and other narcotics, and a loaded Sig Sauer .40 caliber pistol. Deputies also located $2,097 in Grogan’s left front pants pocket.
In February 2018, Grogan pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. She is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The ATF, the Haywood County Sheriff’s Office, Waynesville Police Department, and the Maggie Valley Police Department investigated the case.
Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Citizen of El Salvador Sentenced to 6.5 Years for Travel in Interstate Commerce to Engage in Illicit Sexual Conduct with Two MinorsRead the Press Release
ASHEVILLE, N.C. – On Thursday, August 2, 2018, Jose Hector Alvarado, 44, a citizen of El Salvador who was residing in Cherokee County, N.C., was sentenced to 78 months in prison and 15 years of supervised release, for traveling in interstate commerce to engage in illicit sexual conduct with two minors, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered Alvarado to register as a sex offender after he is released from prison.
According to filed court documents and court proceedings, on March 19, 2016, Alvarado drove a 13-year-old girl and a 14-year-old girl from Cherokee County, N.C., to Anderson, S.C. for the purpose of engaging in sex with the minors there. Upon arriving in Anderson, Alvarado bought gifts for the minors and then rented a motel room. Court records show that the minors contacted their parents and informed them of their whereabouts. The parents alerted local law enforcement and the minors were rescued.
Alvarado pleaded guilty on October 26, 2017, to traveling in interstate commerce to engage in illicit sexual conduct. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole. Alvarado will also be subject to deportation proceedings upon the completion of his federal sentence.
In making today’s announcement, U.S. Attorney Murray thanked ICE/Homeland Security Investigations and the Cherokee County Sheriff’s Office for their investigation of this case.
The U.S. Attorney’s Office in Asheville prosecuted the case.
Federal Complaint Charges Buncombe County Man with Second Degree MurderRead the Press Release
ASHEVILLE, N.C. – A federal criminal complaint was filed today charging Derek Shawn Pendergraft, 20, of Asheville, N.C., with second degree murder, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Neal D. Labrie, Chief Ranger of the Blue Ridge Parkway; and Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI).
According to allegations in the filed criminal complaint, on the evening of July 24, 2018, Pendergraft, an employee of the Pisgah Inn on the Blue Ridge Parkway, reported that a co-worker, identified in the complaint as “S.E.,” was missing. The complaint alleges that, when initially interviewed by investigators, Pendergraft stated that he and S.E. both got off work shortly after four p.m. and decided to go for a hike on an unnamed trail near the employee housing area of the Pisgah Inn. Pendergraft stated that shortly after starting their hike it began to rain and S.E. decided to return to the housing area while he continued to hike. According to the complaint, Pendergraft stated that on his way back, upon reaching the point where he last saw S.E., Pendergraft saw her umbrella and hat lying on the ground. Pendergraft stated that he immediately began to search for S.E. and informed the management staff at the Pisgah Inn that she was missing. Rangers and first responders searched the area and located S.E.’s body lying off an embankment, near a trail, within the boundary of the Blue Ridge Parkway, in Transylvania County, in the Western District of North Carolina.
The complaint alleges that, on the evening of July 25, 2018, the manager of the Pisgah Inn contacted law enforcement and advised that Pendergraft was in her office and had confessed to killing S.E. Law enforcement arrived at Pisgah Inn, interviewed Pendergraft, and arrested him shortly thereafter in connection with S.E.’s murder.
Pendergraft is currently in custody. The charge carries a maximum penalty of life in prison.
A complaint is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Murray thanked the National Park Service, the FBI, the SBI, the Transylvania County Sheriff's Office, the Haywood County Sheriff's Office, and the Cruso Fire Department for their respective work and assistance in this case.
The prosecution is being handled by Assistant U.S. Attorney Don Gast, of the U.S. Attorney’s Office in Asheville.
Charlotte Man and His Wife Plead Guilty to Sex Trafficking Three MinorsRead the Press Release
CHARLOTTE, N.C. – Zerrell Ross Fuentes, 24, and his wife, Brianna Leshay Wright, 25, both of Charlotte, appeared in federal court today and pleaded guilty to sex trafficking three minor victims, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.
According to filed plea documents and statements made in court, between April 28, 2016 and May 8, 2016, Fuentes, his wife, Brianna Wright, and his mother and indicted co-conspirator, Tanya Marie Fuentes, engaged in the sex trafficking of three minor victims. Zerrell Fuentes admitted in court today that, while he was in jail, he recruited three underage victims, via telephone, to engage in prostitution to earn money for his bond. Zerrell Fuentes arranged for Wright to transport the minor victims from Charlotte to Myrtle Beach, S.C., for the purpose of engaging in commercial sex acts.
According to court records, Brianna Wright, accompanied by Tanya Fuentes, drove the three minors from Charlotte to Myrtle Beach. While in Myrtle Beach, Tanya Fuentes paid for lodging, and Brianna Wright’s phone was used to post prostitution advertisements for the minor victims on the Internet. She also provided her own telephone number on the ads, as a means of communication to arrange “dates” between the minors and customers, and transported the victims to and from the arranged prostitution appointments.
Zerrell Fuentes and Brianna Wright remain in custody. A sentencing date has not been set. Tanya Fuentes is charged with conspiracy to commit sex trafficking, sex trafficking of a minor, conspiracy to transport a minor to engage in prostitution, and transportation of a minor to engage in prostitution. Those charges are still pending.
The penalty for sex trafficking related offenses is a mandatory minimum of 10 years and a maximum of life in prison and a $250,000 fine.
In making today’s announcement U.S. Attorney Murray commended the law enforcement agents and officers from Homeland Security Investigations and the Charlotte Mecklenburg Police Department who are members of the FBI’s Human Trafficking Task Force for their investigation. He also thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance in this case.
Assistant U.S. Attorney Kimlani Ford, of the U.S. Attorney’s office in Charlotte, is prosecuting the case.
Armed Career Criminal Sentenced to 15 Years for Hobbs Act Robbery and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – Ronteeni Pak Belk, 40, of Charlotte, N.C., was sentenced to 180 months in prison on Hobbs Act robbery and felon in possession of a firearm charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered Belk to serve three years under court supervision after he is released from prison.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Murray in making today’s announcement.
On March 13, 2017, Belk robbed at gun point the Cash America Pawn located at 5200 North Tryon Street in Charlotte. According to filed court documents and statements made in court, at approximately 9:00 a.m., Belk entered the store, pointed a silver handgun at employees, and demanded money. A female employee complied and gave Belk cash from the store’s cash registers. Court records show that Belk also demanded personal items from the individuals inside the store. The same female employee and a customer gave Belk their wallets. Belk then fired a shot into the ground and left the scene. Soon after Belk left the store, the female employee called 911 to report the robbery.
According to court records, CMPD officers located Belk driving a black Hyundai Elantra and began to follow him. Belk attempted to evade the officers, and eventually crashed his vehicle at N. Graham Street and W. Sugar Creek Road. Belk fled the scene on foot and was apprehended shortly thereafter in a wooded lot in the 5700 block of N. Graham Street. At the scene, officers recovered a chrome Raven Arms .25 caliber pistol and four live rounds, a glove, and the store employee’s wallet. The cash from the store’s register was recovered near the intersection where Belk had crashed his vehicle.
At the time of the offense, Belk was a convicted felon and was prohibited from possessing a firearm. Court records indicate that due to Belk’s prior criminal convictions for robbery with a dangerous weapon, he qualified for a sentencing enhancement as an armed career criminal.
Belk is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the FBI and CMPD for leading the investigation.
Assistant United States Attorney William Bozin, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
U.S. Attorney Statement Regarding Conclusion of Investigation into Incident Involving Former Asheville Police OfficerRead the Press Release
The U.S. Attorney’s Office for the Western District of North Carolina announced today that federal charges will not be filed against former Asheville Police Department Officer Christopher Hickman, following an investigation into the August 25, 2017, arrest incident involving Officer Hickman and Mr. Johnnie Rush.
In making today’s announcement, U.S. Attorney Andrew Murray stated, “The U.S. Attorney’s Office for the Western District of North Carolina, the Justice Department’s Civil Rights Division, and the Federal Bureau of Investigation conducted a thorough and independent review of all evidence related to this case. After careful examination, the U.S. Attorney’s Office has determined that the evidence does not give rise to a prosecutable violation of the federal criminal civil rights laws.”
The U.S. Attorney’s Office takes allegations of civil rights violations involving law enforcement officers very seriously and we ensure such allegations are investigated fully and completely.
Longtime Federal Prosecutor Among Inaugural North Carolina Lawyers Weekly Hall of Fame InducteesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Gill Paul Beck, Sr., a longtime federal prosecutor with the U.S. Attorney’s Office for the Western District of North Carolina, was among the 23 North Carolina lawyers inducted into the North Carolina Lawyers Weekly Hall of Fame. The ceremony for the Class of 2018 was held on June 26th at the City Club in downtown Raleigh.
Mr. Beck is an Assistant United States Attorney (AUSA) in Asheville, and currently serves as the Civil Chief of the Office’s Civil Division. Prior to joining the Western District, Mr. Beck served as the Civil Chief for the U.S. Attorney’s Office in the Middle District of North Carolina. A 26-year federal prosecutor, Mr. Beck guides the handling of the Office’s civil caseload, including representing the United States and federal agencies in federal and state courts. AUSA Beck is a past recipient of the Attorney General’s Distinguished Service Award, the NC Lawyers Weekly Lawyer of the Year (2016), and the NC Bar Association’s Citizen-Lawyer Award. He was born and raised in Lenoir, North Carolina.
Mr. Beck served as the first Army Judge Advocate to command a two-star U.S. Army Reserve unit, and also commanded the Army Reserve Legal Command. Over the course of his military career, Major General Beck has served the United States overseas, including in 2005 in Iraq, where he led a joint legal team prosecuting terrorists. During 2007, as an Associate Deputy General Counsel in the Office of General Counsel, Department of Defense, in the Pentagon, he provided legal advice on Iraq and Afghanistan issues in support of the surge in Iraq, and in 2008, he served as Executive Officer to the Army General Counsel, who was responsible for supervising Army attorneys throughout the world. From 2009-2011, he served as the Chief Judge (Individual Mobilization Augmentee) to the Army Court of Criminal Appeals. For his service, Major General Beck has been awarded the Bronze Star, the Legion of Merit, and numerous other awards.
Mr. Beck received his Bachelor’s Degree from Appalachian State University (Summa Cum Laude), his J.D. from Duke University School of Law (High Honors), and his Master’s Degree from the U.S. Army War College.
Convicted Sex Offender Is Sentenced to 27 Months for Threatening to Kill Gaston County District Attorney and State ProsecutorRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Larry Brandon Moore, 31, of Gastonia, N.C. was sentenced to 27 months in prison, followed by three years of supervised release, for threatening to kill Gaston County District Attorney Locke Bell and Assistant District Attorney (ADA) Deborah Gulledge.
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 court documents and court proceedings, on March 1, 2017, while incarcerated in the Avery Mitchell Correctional Institution in Spruce Pine, N.C., Moore mailed a letter to a ADA Gulledge, in which he threatened to kill her and to murder her family. ADA Gulledge had successfully prosecuted Moore on state charges for sexually exploiting a minor, which resulted in Moore’s conviction and incarceration. Moore also threatened to kill two detectives employed by the Gastonia Police Department.
On or about March 1, 2017, Moore also sent a letter to Gaston County District Attorney Locke Bell, threatening to kill Mr. Bell’s family, to punish the District Attorney and to hold him accountable for ADA Gulledge’s actions.
Moore pleaded guilty to two counts of mailing threatening communications.
In announcing today’s sentence, U.S. District Judge Robert J. Conrad, Jr. stated in open court, “The fact that the defendant committed the offense while serving an active term of incarceration for exploitation of a minor justified a sentence at the very top of the sentencing guideline range.”
The FBI led the investigation. Assistant U.S. Attorney Dana Washington, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charlotte Investment Fund Operator Sentenced to 7.5 Years for Securities Fraud and Tax EvasionRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. sentenced Richard Wyatt Davis, Jr. 41, formerly of Cornelius, N.C., to 90 months in prison and two years of supervised release for securities fraud and tax evasion, announced the U.S. Attorney’s Office for the Western District of North Carolina.
Reginald DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) join the U.S. Attorney’s Office in making today’s announcement.
According to filed documents and today’s court proceedings, between 2010 and February 2015, Davis defrauded approximately 75 victims of $9.3 million, by inducing them to invest in investment funds Davis controlled, such as DCG Real Assets, as well as other investments, including H2O, LLC and Basalt Exploration. According to court records, Davis recruited his victim-investors by making a series of false and fraudulent representations about where their money would be invested. For example, Davis told investors that he would use their funds to invest in natural resources and assets such as real estate, gold mines, and water production, and touted these investments as a safe alternative to the stock market.
In reality, Davis used investor funds to pay for administrative and overhead expenses and to repay other investors. Davis also used some of the money to make direct and indirect payments to himself. Court records show that Davis assured victims that their assets were growing in value despite lacking sufficient financial information to make these claims.
According to court records, Davis generally targeted investors residing in and around Charlotte. His clients included professional athletes and individuals Davis recruited through his church. Davis also spoke at events for “preppers” and survivalists, thereby targeting victim-investors who were fearful of the stock market and the banking system. Davis preyed upon these investors’ fears of traditional financial markets and took advantage of their trust into someone who shared their religious views. Court records show that a number of Davis’s victim investors had rolled over their entire retirement savings into his funds.
According to filed documents and today’s court proceedings, for tax years 2009 through 2012, Davis transferred more than $5 million of investor funds into bank accounts in his own name and in the names of Richard Davis Enterprises and Davis Financial, Inc. Davis used some of these funds, as well as funds directly out of other accounts of Davis’s businesses, on personal expenditures totaling over $2 million. However, Davis filed false tax returns for 2009 and 2011, which reflected negative total income and failed to file individual income tax returns for 2010 and 2012.
In announcing today’s sentence, Judge Conrad said that the defendant engaged in “very significant fraudulent conduct” for a long period of time, causing harm to many and noted that he put “victims in a position from which they can never recover.” Judge Conrad emphasized the need for the sentence to reflect the seriousness of the offense, but he also considered the need to avoid unwarranted sentencing disparities.
The investigation was handled by the USSS and IRS-CI. Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte and Assistant U.S. Attorney Daniel Bradley of the U.S. Attorney’s Office in Asheville prosecuted the case.
Leader of Local Hip-Hop Group Pleads Guilty to Bank and Wire Fraud Conspiracy and Aggravated Identity Theft ChargesRead the Press Release
CHARLOTTE, N.C. – Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced today that Damonte Withers, 29, of Charlotte, pleaded guilty in federal court to bank fraud conspiracy, wire fraud conspiracy, and aggravated identity theft charges in connection to a bank and identity theft scheme.
Withers’ co-defendants, James Willingham, Jr., 24; Deandre Howze, 23; Jeffrey Monteith, 22; and Laerek Williams, 26; as well as co-conspirators Alexsandera Mobley, 28; Lakesiah Norman, 37; and Sharrieff Pope, 25, all of Charlotte, previously entered guilty pleas for their involvement in the conspiracy.
U.S. Attorney Murray is joined in making today’s announcement by David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service; Reginald DeMatteis, Special Agent in Charge of the U.S. Secret Service, Charlotte Field Office; and Chief Kerr Putney of the Charlotte Mecklenburg Police Department.
According to filed plea documents and today’s plea hearing, Withers, also known as “Tony da Boss” on social media, and his co-conspirators, were members of a local hip-hop group known as the “FreeBandz Gang” or “FBG.”
According to court documents, from February 2014 through January 2016, Withers conspired with others to commit bank fraud by engaging in what is commonly known as a “card-cracking” scheme. As part of the scheme, Withers and his co-conspirators recruited individuals to hand over their bank account ATM/debit cards and PINs in exchange for the promise of an easy pay-day. Withers and other members of FBG would then deposit fraudulent or stolen checks into the bank accounts using the corresponding ATMs or mobile banking applications, triggering a credit to the account. Court records show that Withers and his co-conspirators would then quickly withdraw cash from the accounts, before the banks could determine the deposited checks were worthless.
Filed documents also show that from October 2016 to December 2017, Withers and members of FBG conspired to commit wire fraud using victims’ stolen identities to fraudulently acquire cellular phones, tablets and other goods so they could resell them for profit. Court records show that Withers and other members of the conspiracy obtained victims’ names, Social Security Numbers, dates of birth, and other personal identifying information, and used that information to manufacture fake IDs, which they then used to complete fraudulent credit applications in the identity theft victims’ names. Over the course of the investigation, law enforcement found Withers to be in possession of several items used to manufacture the fictitious identification cards, and of the personal identifying information of at least 18 individuals.
According to plea documents and today’s proceedings, Withers admitted to causing between $550,000 and $1.5 million in losses as a result of his fraud.
U.S. Magistrate Judge David S. Cayer presided over Withers’ guilty plea. Withers was released on bond following today’s hearing. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney Murray commended the work of the United States Secret Service, the United States Postal Inspection Service, and the Charlotte Mecklenburg Police Department for their investigation of this case.
Assistant United States Attorney Dallas J. Kaplan of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
Grand Jury Indicts Matthews, N.C. Man Previously Arrested in Murder-For-Hire PlotRead the Press Release
CHARLOTTE, N.C. – A grand jury sitting in Charlotte returned a federal indictment yesterday, charging Bryant Riyanto Budi, 26, of Matthews, N.C. with attempted possession of radioactive material with intent to cause death and use of interstate commerce facilities in the commission of murder-for-hire. Budi was arrested on Friday, June 1, 2018, for attempting to hire a hitman via the internet to murder a Charlotte-area resident.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Nick S. Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas join U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the charging documents, in April and May 2018, Budi contacted an HSI undercover agent (UCA) located in Buffalo, New York via the internet to conduct a murder-for-hire. Court documents allege that Budi used online usernames, encrypted messaging platforms, and encrypted email services to disguise his true identity from the undercover agent. During the course of communications between Budi and the UCA, Budi hired the UCA to murder an individual who resides in the Charlotte area, identified in court documents as “C.S.”
Court documents allege that in April and May 2018, Budi also contacted an FBI online covert employee (OCE) via the internet to purchase a lethal dose of a radioactive substance. In his communications with the OCE, Budi expressed his intent to use the radioactive substance to kill an unnamed individual. Budi also instructed the FBI OCE to ship the radioactive substance to an address in Charlotte. On May 22, 2018, the OCE advised Budi a package containing the radioactive substance was shipped. On May 31, 2018, the package containing an inert substitute for the radioactive material ordered by Budi was delivered to an address in Charlotte as instructed by Budi. On June 1, 2018, at approximately 11:15 p.m., Budi was arrested.
The charge of attempted possession of radioactive material with intent to cause death carries a maximum term of life in prison. The use of interstate commerce facilities in the commission of murder-for-hire charge carries a maximum prison term of 10 years.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray thanked HSI in Buffalo, New York and Charlotte; the FBI in Charlotte and supporting FBI field offices; the FBI’s Weapons of Mass Destruction Directorate in Washington, D.C.; the U.S. Attorney’s Office for the Western District of New York, and the Department of Justice’s National Security Division.
Assistant U.S. Attorney Casey Arrowood of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution, assisted by Trial Attorney Bridget Behling, of the National Security Division.
Hendersonville, N.C. Attorney Sentenced to Two Years for Wire FraudRead the Press Release
ASHEVILLE, N.C. – Howard Trade Elkins, 44, of Hendersonville, N.C. was sentenced late yesterday to 24 months in prison on wire fraud charges for embezzling client funds from his law office’s trust account, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also ordered Elkins to serve two years of supervised release upon completion of his prison term.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI) is making today’s announcement with U.S. Attorney Murray.
According to court filings, plea documents and court proceedings, Elkins was an attorney with a private practice in Hendersonville. From 2012 to 2017, Elkins engaged in a scheme to embezzle from his law office’s trust account. During the relevant time period, Elkins served as an attorney for estates of deceased individuals. Among his duties as the estate attorney, Elkins received funds from various sources into his law firm’s trust account, and used such funds to pay various debts and inheritances as directed. According to court records, Elkins would, at times, deposit funds from estate clients into his law firm’s trust account, but did not use the funds as directed. Instead, Elkins embezzled the funds and used it to support his own lifestyle, to gamble, to make lulling payments to other victim clients and to satisfy potential debts and demands related to his legal work.
“Elkins’ clients trusted him and relied on him to carry out his duties as their attorney. Instead, Elkins used his law firm’s trust account as his personal piggy bank,” said U.S. Attorney Murray. “Elkins’ misconduct is reprehensible and, more importantly, it erodes the public’s trust in our legal system,” said U.S. Attorney Murray.
Elkins pleaded guilty in November 2017 to wire fraud. He will be ordered to report to the federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility.
The investigation was handled by the FBI. Assistant U.S. Attorney Don Gast of the U.S. Attorney’s Office in Asheville prosecuted the case.
Deputy Attorney General Recognizes Two Assistant United States Attorneys at Annual Director's Awards CeremonyRead the Press Release
CHARLOTTE, N.C. – Assistant United States Attorneys (AUSAs) Cortney Randall and Benjamin Bain-Creed of the U.S. Attorney’s Office in the Western District of North Carolina were among the 162 members of the Department of Justice recognized by Deputy Attorney General Rod Rosenstein, and Executive Office for U.S. Attorneys (EOUSA) Director James Crowell, IV at the 34th Director’s Awards Ceremony today in Washington D.C.
The Western District of North Carolina was one of 35 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
In addressing the award recipients and guests, Deputy Attorney General Rod Rosenstein said, “Today’s honorees earned the esteem of their colleagues. But most importantly, they earned the gratitude of our fellow citizens — the people whose communities you made safer, whose lives you improved, and whose trust you rewarded. Today, we pause to honor and recognize a small portion of your work.”
In making today’s announcement R. Andrew Murray, U.S. Attorney for the Western District of North Carolina said, “Assistant United States Attorneys Cortney Randall and Benjamin Bain-Creed were recognized for their exemplary work with the investigation and prosecution of individuals involved in criminal conduct that can only be described as horrific. As a result of the trial team’s skills and tenacity, the perpetrators received substantial prison sentences, which will prevent them from further harming children. This prestigious award undoubtedly speaks to Cortney and Ben’s competence as lawyers and their dedication as public servants to furthering our mission of delivering justice and protecting the people of this District.”
AUSAs Randall and Bain-Creed, along with Department of Justice Trial Attorney Reginald Jones and FBI Special Agent Dan Alfin, received the Director’s Award for Superior Performance by a Litigative Team for their work on United States v. Steven W. Chase, et al (5:15-cr-15). The case involved the investigation and prosecution of administrators and users of “Playpen,” a highly sophisticated, global enterprise dedicated to the sexual exploitation of children, organized via a members-only website that operated on the dark web. Playpen’s administrators and more than 150,000 other members spent more than 4,000,000 hours in just over six months writing and viewing tens of thousands of postings relating to sexual abuse of children as young as infants and toddlers.
Following guilty pleas by co-defendants Michael Fluckiger of Portland, Indiana and David Lynn Browning, of Wooten, Kentucky, a federal jury in the Western District of North Carolina convicted lead site administrator, Steven W. Chase, of Naples, Florida, of engaging in a child exploitation enterprise and related charges. The court sentenced Fluckiger and Browning to 20 years in prison, and Chase to 30 years in prison. All three defendants were also ordered by the Court to serve a lifetime of supervised release. The Court further ordered Chase to forfeit his Naples residence from which he administered the site, and ordered all defendants to pay restitution to their victims.
To date, the investigation has resulted in 350 U.S. arrests and 548 international arrests, the prosecution of 51 hands-on child sex abusers and 25 producers of child pornography, and the identification or rescue of 55 American children and 296 sexually abused children around the world. This investigation and prosecution pioneered investigative work into the dark web that left an impact worldwide.
AUSA Randall received her undergraduate degree in Psychology from Davidson College, and her JD from Georgetown University Law Center.
AUSA Bain-Creed received his Bachelor of Arts in English from the University of Southern Mississippi, and his JD from the University of Florida. He also holds a Master’s Degree in English from the University of Florida.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Cherokee, N.C. Man Sentenced to Four Years for His Role in 2015 Murder at Smokemont Baptist ChurchRead the Press Release
ASHEVILLE, N.C. – Johnathan Hill, 25, of Cherokee, N.C. was sentenced yesterday to 48 months in prison for his role in the 2015 murder of a male victim at Smokemont Baptist Church, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also ordered Johnathan Hill to serve two years of supervised release upon completion of his prison term.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Jared St. Clair, Acting Chief Ranger of the Great Smoky Mountains National Park, and Chief Doug Pheasant of the Cherokee Indian Police Department (CIPD) are making today’s announcement with U.S. Attorney Murray.
According to court filings, plea documents and the sentencing hearing, on March 29, 2015, CIPD received a 911 call alerting officers to a stabbing that had taken place inside Oconaluftee Baptist Church, commonly known as the Smokemont Baptist Church, located in the Great Smoky Mountains National Park. Paramedics responding to the scene determined that the male victim had been stabbed and was deceased. According to court records, Johnathan Hill, Forrest Dakota Hill, and the victim drove to the church together. Over the course of their visit, Forrest Hill stabbed the victim with a knife during an unprovoked attack, causing the victim’s death. Court records show that the victim had been stabbed at least 16 times in the chest, back, neck and elsewhere.
Following the stabbing, Johnathan Hill and Forrest Hill, who are not related, drove away from Smokemont Baptist Church. Along the way, Johnathan Hill tossed through the car window the handle of the knife he believed to have been used in the attack. After that, the two men drove to the home of Johnathan Hill’s relatives, where the two men burned the clothes they wore during the stabbing.
In December 2017, Johnathan Hill pleaded guilty to a charge of accessory after the fact to second degree murder. Forrest Hill was previously sentenced to more than 16 years in prison on second degree murder charges.
The investigation was handled by the FBI, NPS and CIPD. Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
Company Owner and Bookkeeper Indicted on Wire Fraud Conspiracy Charges in Connection with Unemployment Insurance Benefits SchemeRead the Press Release
ASHEVILLE, N.C. – A grand jury sitting in Asheville returned a federal criminal indictment today, charging Marion Kent Covington, 63, and Diane Mary McKinny, 65, both of Rutherfordton, N.C., with a conspiracy to commit wire fraud in connection with an unemployment insurance benefits scheme, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Nick S. Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas; Robert Schurmeier, Director of the North Carolina State Bureau of Investigation; and Rafiq Ahmad, Special Agent in Charge of the Department of Labor-Office of the Inspector General, join U.S. Attorney Murray in making today’s announcement.
According to allegations contained in the indictment, at all relevant times, Covington was the president, owner, and registered agent of Diverse Corporate Technologies, (“DCT”), a plastics manufacturing company located in Rutherford County, N.C. McKinny worked for Covington at DCT. The indictment alleges that, in late 2008, DCT was struggling financially, so the co-defendants developed and implemented a scheme to defraud the State of North Carolina by placing DCT employees on Unemployment Insurance Benefits (“UI Benefits”), while those employees continued to work at the business in excess of what was permitted by the program eligibility requirements. The indictment alleges that the scheme allowed DCT to reduce the cost-of-labor component of its cost-of-goods-sold, thereby increasing its net profitability.
The indictment alleges that in November or December 2008, in order to accomplish the scheme, the co-defendants “laid off” nearly all of the employees at DCT. The co-defendants provided some employees with separation notices and instructed them as to how to file their own claims for UI Benefits. Those employees received UI Benefits based on their asserted “totally unemployed” status. Next, the indictment alleges, Covington called a business meeting at DCT and informed the remaining DCT employees that the company could no longer afford to pay their wages, and that they therefore would be placed on UI Benefits, but that Covington expected the employees to continue to work at DCT, just as they had before they were laid off, in order to help the business survive. The indictment alleges that Covington used his position of authority within his church community, which included most, if not all, of the employees at DCT, to coerce the employees to comply. Around the same time, McKinny filed claims for UI Benefits on behalf of the employees whom Covington had required to continue working at DCT while they received UI Benefits. In filing the necessary information for UI Benefits, McKinny certified the claimants’ initial and continuing eligibility to receive those benefits.
The indictment alleges that, at Covington’s direction, at least five of the employees for whom McKinny made claims for UI Benefits then continued to work at DCT on a full-time or near-full-time basis while collecting UI Benefits every week. Through the operation of the scheme outlined above, the co-defendants obtained more than six months of free labor for DCT, paid for by the government, instead of by the business itself.
The indictment further alleges that by September 2009, several other businesses run by members of the same church community to which Covington and McKinny belonged, and employing many members of that same church community, were facing their own financial struggles related to the economic downturn. According to the indictment, the co-defendants then began to promote the fraud that they had devised at DCT to other members of the church community.
In addition to promoting the scheme to other business owners, Covington implemented the scheme a second time, with McKinny’s help, at Integrity Marble, Inc., d/b/a Integrity Marble & Granite, another for-profit company that Covington owned and managed, in or about March of 2010. Covington then implemented a variation of the scheme a third time at Sky Catcher Communications, Inc., a company he managed, in or about May of 2011.
In total, between November 2008 and March 2013, the scheme resulted in over $250,000 in fraudulent claims for UI Benefits by employees who continued to work full-time or near-full-time at businesses owned or managed by co-conspirators, and who were therefore ineligible to claim those UI Benefits.
Covington and McKinny are charged with conspiracy to commit wire fraud affecting a financial institution, which carries a maximum prison term of 30 years and a maximum fine of $1,000,000. They have been ordered to appear on a summons in federal court.
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 commended HSI, SBI, and the Department of Labor for their investigation of the case. U.S. Attorney Murray also thanked District Attorney Ted Bell, of the Rutherford County District Attorney’s Office, for his assistance and support throughout the investigation.
Assistant U.S. Attorney Daniel Bradley of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
U.S. Attorney's Office to Hire Three Federal Prosecutors Following Newly-Allocated Positions Announced by the Justice DepartmentRead the Press Release
CHARLOTTE, N.C. – United States Attorney R. Andrew Murray announced today that the Western District of North Carolina will hire three Assistant U.S. Attorneys (AUSAs), following an announcement by the Justice Department regarding newly-allocated AUSA positions. Two AUSAs will focus on violent crime prosecutions, and one will join the Office’s Affirmative Civil Enforcement (ACE) unit, with a special focus on civil opioid enforcement.
“Reducing violent crime and tackling the opioid abuse epidemic are priority areas for my Office and the Justice Department,” said U.S. Attorney Murray. “The addition of three federal prosecutors will further our mission to seek justice and to keep the citizens of Western North Carolina as safe as collectively possible.”
In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSAs will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.
“Under President Trump’s strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements,” said Attorney General Jeff Sessions. “We have a saying in my office that a new federal prosecutor is ‘the coin of the realm.’ When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades.”
New Federal Indictment Charges Former Buncombe County Manager with Wire Fraud, Federal Program Fraud, and Money LaunderingRead the Press Release
ASHEVILLE, N.C. – A 23-count criminal indictment was returned by a federal grand jury sitting in Asheville late Tuesday, charging former Buncombe County Manager Wanda Skillington Greene, 66, of Arden, N.C., with wire fraud, federal program fraud, and money laundering, in connection with a $2.3 million scheme involving the purchase of whole life insurance policies for herself and other county employees using misappropriated County funds, announced R. 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; Director Robert Schurmeier of the North Carolina State Bureau of Investigation (SBI); and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), join U.S. Attorney Murray in making today’s announcement.
According to the indictment, Wanda Greene was appointed as County Manager for Buncombe County (the County) in 1997, and remained in that position until her retirement in June 2017. As County Manager, Wanda Greene was responsible for the administration of all departments of the County’s government under the control of the Board of Commissioners (the Board). In that role, Wanda Greene had the power to appoint, suspend, and remove all county officers, employees, and agents, and was responsible for directing and supervising the administration of all county offices, departments, boards, commissions and agencies controlled by the Board. As part of her duties, Wanda Greene was also required to prepare and submit the County’s annual budget and capital program to the Board, and to submit annually to the Board, and make available to the public, a complete report of the finances and administrative activities of the county at the end of the fiscal year.
According to allegations contained in the indictment, beginning in or about April 2015, and continuing until in or about July 2017, Greene defrauded Buncombe County by misappropriating approximately $2.3 million of Buncombe County funds to purchase whole life insurance policies for herself, her son Michael Greene, and eight other County employees, and to purchase an annuity for another county employee who did not qualify for a whole life insurance policy. During the time period relevant to the indictment, Buncombe County received benefits in excess of $10,000 per year under a federal program involving a grant, contract, subsidy, loan, and other forms of federal assistance.
The indictment alleges that in April 2015, Greene began communicating with a Charlotte-based insurance agent about her intent to procure insurance policies for herself and certain other Buncombe County employees at County expense. Shortly after meeting with the insurance agent, Greene falsely began telling selected County employees that she had been working with the Board on a new benefit program for certain employees involving the County’s purchase of life insurance policies for them, at no expense to the employee. Greene allegedly stressed that only certain employees would be receiving this benefit, and told the employees with whom she spoke to keep this program and their participation strictly confidential.
According to the indictment, the policies that Greene was procuring were whole life insurance policies, with a resulting cash value and the ability to borrow against such policies. Furthermore, the indictment alleges that, at Greene’s direction, the County prepaid the initial payment and several years’ worth of annual premiums for each policy agreement, which meant that, upon termination of the policy, a policy owner could receive whatever cash value the policy had, as well as the remaining prepaid premiums. The indictment alleges that in this manner, in the first month after Greene retired from her County employment, she was able to obtain cash out of two such policies, thereby personally obtaining approximately $396,000 of fraudulently-acquired money funded by Buncombe County.
According to allegations in the indictment, Greene selected the employees that would receive the life insurance policies and selected the amounts the County would prepay for each policy. To fund the scheme, Greene did not seek the Board’s authorization to purchase these policies with County funds. Rather, in order to gain access to the County money necessary to fund her scheme, the indictment alleges that Greene inflated the settlement amounts for two federal civil rights lawsuits against the County that the Board agreed to pay. She later fraudulently claimed to the life insurance company, the insurance agent, and to the various County employees that the Board had also approved and enacted funding for the life insurance program she had created when it enacted a budget amendment to settle those lawsuits, when, in fact, the Board never approved, and never even knew about the existence of, Greene’s life insurance scheme.
The indictment further alleges that after the Board approved the requisite budget amendment to fund the settlement of the civil lawsuits, Greene caused a series of interstate wire transactions to make initial lump-sum prepayments, and later quarterly payments, toward the premiums of the various insurance policies. According to the indictment, shortly before she announced her intention to retire, Greene attempted to quadruple the quarterly payments from $40,000 to $160,000. When the County’s Finance Director expressed concern about the increased amount, Greene destroyed the handwritten note she had provided requesting the increase, and told the Finance Director to forget about any more payments.
On May 30, 2017, Greene publicly announced her retirement, which took effect on June 30, 2017. The indictment alleges that, almost immediately upon her retirement, Greene liquidated her two life insurance policies. As a result, on or about July 13, 2017, the insurance company sent Greene two checks totaling $395,859.60, which Greene deposited into her State Employee Credit Union account. Less than a month later, on or about August 7, 2017, Greene used a portion of the proceeds from the insurance checks to wire $155,000 from her State Employees Credit Union account to the account of a law firm in Nashville, Tennessee.
Wanda Greene has been ordered to appear on a summons on the charges. She is charged with 12 counts of wire fraud, each of which carries a maximum penalty of 20 years in prison and a $250,000 fine; eight counts of federal program fraud, each carrying a maximum prison term of 10 years per count and a $250,000 fine; and three counts of money laundering, which carry a maximum penalty of 10 years in prison per count and a $250,000 fine.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
A separate federal indictment was filed in April 2018, against Wanda Greene and her son, Michael Greene, for misusing their government credit cards to make approximately $200,000 worth of improper purchases. Those charges are still pending.
In making today’s announcement U.S. Attorney Murray thanked the FBI, IRS-CI and the SBI for their investigation of this case, and noted that the investigation into allegations of criminal activities within the Buncombe County Government is ongoing.
Assistant United States Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
# # #
Matthews, N.C. Man Is Arrested in Murder-For-Hire PlotRead the Press Release
CHARLOTTE, N.C. – A Matthews, N.C. man was arrested on Friday, June 1, 2018, for attempting to hire a hitman via the internet to murder a Charlotte area resident, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Bryant Riyanto Budi, 26, appeared in federal court today before U.S. Magistrate Judge David C. Keesler.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Nick S. Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas join U.S. Attorney Murray in making today’s announcement.
According to allegations in the filed Complaint, in April and May 2018, Budi contacted an HSI undercover agent (UCA) located in Buffalo, New York via the internet to conduct a murder-for-hire. The Complaint alleges that Budi used online usernames, encrypted messaging platforms, and encrypted email services to disguise his true identity from the undercover agent. During the course of communications between Budi and the UCA, Budi hired the UCA to murder an individual who resides in the Charlotte area, identified in the Complaint as “C.S.”
The complaint further alleges that separately, in April and May 2018, Budi also contacted an FBI online covert employee (OCE) via the internet to purchase a lethal dose of a radioactive substance. In his communications with the OCE, Budi expressed his intent to use the radioactive substance to kill an unnamed individual. Budi also instructed the FBI OCE to ship the radioactive substance to an address in Charlotte. The Complaint alleges that on May 22, 2018, the OCE advised Budi a package containing the radioactive substance was shipped. On May 31, 2018, the package containing an inert substitute for the radioactive material ordered by Budi was delivered to an address in Charlotte as instructed by Budi. On June 1, 2018, at approximately 11:15 p.m., Budi was arrested.
Budi is charged with one count of using interstate commerce facilities in the commission of murder-for hire, which carries a maximum prison term of 10 years.
The charges contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement U.S. Attorney Murray praised the outstanding work of HSI in Buffalo, New York and Charlotte; the FBI in Charlotte and supporting FBI field offices; the FBI’s Weapons of Mass Destruction Directorate in Washington, D.C.; the U.S. Attorney’s Office for the Western District of New York, and the Department of Justice’s National Security Division.
Assistant U.S. Attorney Casey Arrowood of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution, assisted by Trial Attorney Bridget Behling, of the National Security Division’s Counterterrorism Section.
Former North Carolina Physician Pleads Guilty to Drug Distribution, Health Care Fraud, and Aggravated Identity Theft ChargesRead the Press Release
CHARLOTTE, N.C. – R. Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced today that Dr. Michael Alson Smith, 65, a former Mt. Holly, N.C. family practice physician, appeared in federal court today and pleaded guilty to drug distribution, health care fraud, and aggravated identity theft charges, in connection with the illegal distribution of controlled substances to female patients in exchange for sex acts.
According to filed plea documents and today’s plea hearing, Dr. Smith was a licensed solo practitioner, who owned and operated Mt. Holly Family Practice, Inc., located in Mount Holly. In addition to practicing family medicine, Dr. Smith had sought and received approval from the Drug Enforcement Administration (DEA) to operate an office-based opioid treatment program, and treated a large number of patients with pain management and substance abuse issues.
According to court documents, from at least January 2017 to October 2017, Dr. Smith began to solicit sexual encounters from female patients whom he treated for pain management and/or substance abuse. In exchange for the encounters, Dr. Smith prescribed to those patients Schedule II, III, and IV controlled substances, including Percocet and Clonazepam (also known as Klonopin), among others. Dr. Smith admitted in court today that, during the relevant time period, he engaged in sexual encounters with at least seven female patients. Charging documents alleged that Dr. Smith used coercion to induce female patients to engage in sexual acts, including threatening to stop treatment and to stop prescribing medication.
During the same time period, Dr. Smith submitted fraudulent claims to, and received payment from, North Carolina Medicaid and Medicare, for non-existent medical services for the office visits in which he performed and received sex acts from female patients. Also, as a result of his illegal prescriptions, Dr. Smith caused some of these patients to submit claims to Medicaid and Medicare when they filled the prescriptions at area pharmacies.
The Honorable Robert J. Conrad, Jr. presided over Dr. Smith’s guilty plea. Dr. Smith was released on bond following today’s hearing. A sentencing date has not been set.
In making today’s announcement U.S. Attorney Murray commended the work of the DEA, the U.S. Department of Health and Human Services – Office of the Inspector General, the North Carolina State Bureau of Investigation, the North Carolina Medicaid Investigation Division, and the Mt. Holly Police Department for their investigation of this case.
Assistant United States Attorneys Kelli Ferry and Jenny Sugar of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
Federal Jury Convicts Armed Bank RobberRead the Press Release
CHARLOTTE, N.C. – Late yesterday, a federal jury in the Western District of North Carolina convicted Anthony Lamont Caldwell, 48, of Charlotte, of armed bank robbery and firearms charges, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. presided over the trial.
U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, and Chief Kerr Putney of the Charlotte Mecklenburg Police Department.
According to filed court documents and evidence presented at trial, Caldwell planned the bank robbery, recruited two teenagers to rob the bank, and served as the getaway car driver. Court records show that on December 9, 2016, Caldwell’s co-conspirators entered a Wells Fargo Bank branch located at 10210 Couloak Drive in Charlotte. Both were armed, and as they approached the teller area of the bank they pointed the firearms at the tellers behind the counter and demanded money. The tellers complied with the bank robbers’ demands and handed Caldwell’s co-conspirators $5,791.60 in cash. The two men fled the bank in a car driven by Caldwell. Shortly after the robbery, law enforcement located Caldwell hiding in a wooded area near a bag which contained $5,614 in cash and a GPS tracker from the bank. They also located the vehicle Caldwell was driving nearby.
According to court documents, Caldwell told law enforcement that he had been carjacked while picking up a pizza, and claimed that he had been forced out of his vehicle at gunpoint by two males and into the backseat of the car. Witness testimony and trial evidence established that Caldwell had not been carjacked. Over the course of the investigation, law enforcement recovered from clothing and other items in Caldwell’s vehicle along with the two revolvers used to perpetrate the robbery.
The jury convicted Caldwell of bank robbery conspiracy, bank robbery, possession of a firearm in furtherance of a crime of violence, and possession of a firearm by a convicted felon. According to court records, Caldwell has two previous federal convictions for bank robbery in 1997, and attempted bank robbery in 2004. Caldwell’s co-conspirators are facing state charges.
Caldwell will remain in custody until his sentencing date, which has not been set. The bank robbery conspiracy charge carries a maximum prison term of five years; the armed bank robbery charge carries a maximum prison term of 25 years; the charge of possession of a firearm in furtherance of a crime of violence offense carries maximum prison term of five years and the possession of a firearm by a felon charge carries a maximum prison term of 10 years.
The FBI and CMPD investigated the case. Assistant U.S. Attorneys William Stetzer and William Bozin are in charge of the prosecution.
Illegal Alien Sentenced to More Than 20 Years for Carjacking and Firearms OffensesRead the Press Release
CHARLOTTE, N.C. – Rodolfo Joel Ulloa-Paz, 30, of Mexico, was sentenced today to 247 months in prison on carjacking and firearms offenses, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Wayne Dixie Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Colonel Glenn McNeill, Commander of the North Carolina State Highway Patrol; and Chief Kerr Putney of the Charlotte Mecklenburg Police Department join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s court proceedings, on the evening of August 10, 2016, CMPD officers located a GMC Sierra truck whose passengers were suspected of being involved in multiple shootings. Court records show that Paz was the driver of the truck, and his co-conspirator, Alan Israel Chavez-Cruz, also an illegal alien, was the front seat passenger. There were four other passengers in the back of the truck. Court records show that when CMPD officers attempted to stop the truck, Paz sped off and attempted to flee. During the flight, the truck was involved in two traffic collisions, however Paz did not stop following either collision.
According to court records, after the truck became inoperable Paz pulled it into the driveway of a residence on East W.T. Harris Boulevard, in Charlotte. Paz then exited the truck holding a Mossberg 12-gauge shotgun. Cruz also got out of the vehicle holding a black 9mm handgun. The remaining four passengers fled the scene. Court records show that Paz and Cruz decided to steal a vehicle in order to flee the scene. Cruz approached the homeowner, R.B., placed his handgun against R.B.’s stomach, and demanded the keys to his nearby 2016 Mazda. R.B. told Cruz that he did not have the keys on him and Cruz rummaged through R.B.’s pockets but was unable to find the car keys.
Paz then attempted to carjack a 2003 Ford Ranger traveling southbound on W.T. Harris Boulevard. E.H. was driving the vehicle and L.B. was the front seat passenger of the moving Ford Ranger. Paz fired his shotgun at the Ford Ranger’s window, and was yelling for E.H. and L.B. to get out of the truck. Birdshot from the shotgun discharge struck the Ford Ranger’s windshield, causing bodily injury to both victims. E.H. continued driving the vehicle down W.T. Harris.
Next, Paz and Cruz approached a parked 2001 Chevrolet Silverado truck. As he approached, Paz fired his shotgun in the air. Cruz, with his handgun visible, told the passenger of the vehicle, K.T., to leave and K.T. fled on foot. With Paz as the driver and Cruz in the front passenger seat, the two men fled the scene.
CMPD officers located the two men. After attempting to stop the vehicle several times, the stolen Chevy Silverado drove erratically and in excess of the speed limit. While traveling down Highway 16, Cruz disassembled his handgun and discarded the parts out of the window and along the side of the road. The vehicle entered Catawba County, and Paz eventually lost control and struck a power pole that left the truck disabled.
After the collision, Cruz got out of the passenger side of the truck and was arrested immediately. Paz got out of the truck holding the 12-gauge shotgun, which he pointed at surrounding officers. Three CMPD officers discharged their weapons, striking Paz who continued to struggle while the officers were trying to arrest him. Ultimately, law enforcement apprehended Paz.
Ulloa-Paz pleaded guilty in November 2017 to conspiracy to commit carjacking, two counts of attempted carjacking, carjacking, and discharging a firearm during, in relation to and in furtherance of a crime of violence. In March 2018, Cruz was sentenced to 147 months in prison. Both men will be subject to deportation proceedings upon the completion of their federal sentence.
In making today’s announcement, U.S. Attorney Murray thanked the ATF, CMPD, and the North Carolina State Highway Patrol for their investigation of the case.
The prosecution was handled by Special Assistant U.S. Attorney (SAUSA) Erik Lindahl. Mr. Lindahl is a state prosecutor with the Mecklenburg County District Attorney’s Office, and was assigned to serve as a Special Assistant United States Attorney (SAUSA) with the U.S. Attorney’s Office in Charlotte.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Charlotte Man Sentenced to 30 Years on Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced late yesterday Jason Reid, 30, of Charlotte, to 30 years in prison on child pornography charges, announced the U.S. Attorney’s Office for the Western District of North Carolina. In addition to the prison term imposed, Judge Conrad also ordered Reid to serve thirty years of supervised release and to register as a sex offender after he is released from prison.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in Charlotte; Chief Kerr Putney, of the Charlotte-Mecklenburg Police Department; and Chief Tim W. Ledford of the Mint Hill Police Department are also making today’s announcement.
According to court documents and court proceedings, in September 2015, law enforcement became aware that an individual with the username “Dodecahedron88” was using the website www.Omegle.com (Omegle), and later the chat application “Kik,” to exchange nude videos and images with a 12-year-old male (Child Victim 1). The FBI identified the individual as Jason Reid, and on November 20, 2015, FBI agents executed a federal search warrant at Reid’s residence in Charlotte. According to court records, Reid admitted to using Omegle and Kik to contact Child Victim 1.
Court records show that law enforcement also discovered text messages between Reid and a 13-year-old female (Child Victim 2). During these chats, Reid told the minor victim, who has a developmental disorder, that one of his fetishes was young girls. Reid admitted in plea related documents that he and Child Victim 2 traded sexually explicit images, and that he enticed Child Victim 2 to engage in illegal sexual activity, knowing that she was not above the age of consent.
Over the course of the investigation, law enforcement recovered multiple text messages, images, and videos containing sexually explicit content between Reid and at least 12 underage male and female victims.
According to court documents, on several occasions, Reid tricked the underage victims into trading sexually explicit videos and images by posing as a teenage boy. In some instances, Reid used fake videos of teenage boys to entice the victims to video chat and send him sexually explicit images.
Court records show that Reid also used the Kik application to receive and distribute child pornography, including some of the images he received from the child victims described above, with various Kik chat groups and individuals that were trading child pornography.
According to court records, a 12-year-old female (identified as Child Victim 12) told law enforcement that after she had traded sexually explicit images with Reid, he had threatened to hurt her if she ever told anyone. Court records show that Reid traded a picture of this victim to another Kik user.
A forensic analysis of Reid’s computer, external hard drive and cellular phones seized from his residence revealed they contained at least 400 videos and 179 images of child pornography, some of which depicted sadistic, masochistic or other violent sexual conduct, and some of which were of minors under the age of 12.
In announcing the sentence, Judge Conrad stated that Reid’s case was one of the worst he had seen in 15 years on the bench.
Reid is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI, CMPD and Mint Hill Police investigated the case. Assistant U.S. Attorney Cortney Randall with the U.S. Attorney’s Office in Charlotte prosecuted the case.
Charlotte Man Sentenced to Seven Years on Gun and Drug ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced yesterday Kendrick Brinkley, 29, of Charlotte, to 84 months in prison and three years of supervised release on drug and gun charges, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Wayne Dixie Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Chief Kerr Putney of the Charlotte Mecklenburg Police Department join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and court proceedings, on April 13, 2016, while conducting a search of a hotel room at La Casa Inn, located at 7900 Nations Ford Road, in Charlotte, CMPD officers located a revolver and a box of ammunition that belonged to Brinkley. On February 3, 2017, ATF Task Force officers arrested Brinkley at a residence in Charlotte. While executing a search warrant at the residence, law enforcement recovered crack cocaine, $2,314 in cash, a loaded firearm, an assault rifle that law enforcement later determined to be stolen, a loaded magazine with a 30-round capacity, and a third firearm, also later determined to be stolen.
Brinkley has prior felony convictions and is prohibited from possessing a firearm. He pleaded guilty in September 2017 to federal charges of possession of a firearm by a felon and possession with intent to distribute crack cocaine. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the ATF and CMPD for their investigation of the case.
Assistant U.S. Attorney Robert Gleason, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Charlotte Man Sentenced to 21 Years on Bank Robbery ChargesRead the Press Release
CHARLOTTE, N.C. – On Tuesday, May 22, 2018, U.S. District Judge Robert J. Conrad, Jr. sentenced Ronald McKnight, 34, of Charlotte to 20 years in prison and three years of supervised release on bank robbery charges, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. McKnight was also sentenced to one additional year in prison for violating his supervised release on prior robbery convictions. Judge Conrad also ordered McKnight to pay $3,425.98 as restitution to victims.
U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD).
According to filed court documents and the sentencing hearing, on January 5, 2015, McKnight entered the Fifth Third Bank branch located at 212 South Tryon Street, in Charlotte. Court records show that McKnight presented a note to the bank teller that read, “Robbery 100 50 20 No Die packs.” The teller handed McKnight over $1,732 in cash and McKnight left the bank. On January 9, 2015, McKnight entered the Wells Fargo Bank branch located at 2910 South Boulevard, in Charlotte. McKnight again handed the teller a note that instructed the teller to give McKnight cash in denominations of $100, $50, and $20, and not to include a dye pack. According to court records, the teller complied with McKnight’s demands, handed him more than $1,660 in cash, and McKnight fled the location. Court records indicate that law enforcement arrested McKnight later the same day.
A federal jury convicted McKnight of bank robbery in June 2017. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked the FBI and CMPD for their investigation of the case.
Assistant U.S. Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Federal Jury Convicts Three High-Ranking Bloods Gang Members of Racketeering ConspiracyRead the Press Release
Three high-ranking leaders of the Nine Trey Gangsters set of the United Blood Nation (UBN or Bloods) street gang, including the “Godfather” of the organization, who also served as “Chairman” of the UBN, were convicted today of racketeering conspiracy charges.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina and Special Agent in Charge John Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.
Pedro Gutierrez, aka Magoo/Light/Inferno, 45; James Baxton, aka Frank White, 44; and Cynthia Gilmore, aka Cynthia Young/Lady Bynt, 42, Raleigh, North Carolina, were convicted by a federal jury sitting in Charlotte following a two-week trial.
“This guilty verdict represents a significant blow against the highest leadership of the Nine Trey Gangsters and the United Blood Nation,” said Acting Assistant Attorney General Cronan. “It reflects the sustained and extensive commitment by federal, state and local law enforcement, including the Criminal Division’s Organized Crime and Gang Section, to disrupt and dismantle this and other prison and street gangs throughout the country.”
“UBN uses violence and intimidation to assert power over our neighborhoods and vicious tactics to bolster the image of an indestructible gang,” said U.S. Attorney Murray. “Today’s convictions of three high-ranking leaders delivered a blow to that myth, proving that UBN gangsters are no different than other common criminals – they can and will be found and prosecuted for their crimes. As we continue our efforts to curb gang violence and devastate gang networks in Western North Carolina, we have a message for the UBN and all other criminal organizations: We are coming for you. Person by person, set by set, clique by clique, and leader by leader. You are in our sights. Your gang will be dismantled and you will be held accountable.”
“These leaders of the UBN thought they were untouchable, continuing to run their criminal enterprise from inside state prison,” said Special Agent in Charge Strong. “Today’s guilty verdicts in federal court abruptly put an end to their dirty business. Do not be mistaken, to anyone who tries to fill the criminal void left by these convictions, you should know, we'll come after you next with the full strength of our federal, local, and state law enforcement partners.”,.
According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since its inception as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star; and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members. The Nine Trey Gangster set of the UBN refer to themselves as “Billies.”
According to court documents and evidence presented at trial, the UBN is governed by a common set of 31 rules, known as “The 31,” which were originally written by the founders of the UBN. Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.
According to court documents and evidence presented at trial, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from “Scrap,” “1-Star General” through “5-Star General,” “Low,” “High,” and, “Godfather.” Based on evidence introduced during the trial, Gutierrez was a “Godfather” of the Nine Trey Gangsters and had served since 2003 as the “Chairman” of the council that governs the UBN. Gutierrez, together with James Baxton and Omari Rosero, were “the last ones that God put in power” over the UBN. As the Godfather of the set, Gutierrez, along with Baxton, conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections. Trial evidence also established that Gutierrez ordered a gang war in North Carolina in 2011 directing that members of the Bloods gang attack and kill members of a renegade gang called Pretty Tony. The war resulted in numerous injuries among inmates and the lockdown of five North Carolina prisons for six months.
Further, trial evidence established that Cynthia Gilmore, who trafficked cocaine, was a local high-ranking officer who routinely traveled from North Carolina to New York to meet with Defendant Gutierrez, acting as his “eyes” and “voice” in the South. The evidence also showed that Baxton was trafficking heroin within the New York State and prison system. He also was calling and threatening the family members of inmates incarcerated in New York State in an effort to obtain money.
In addition to the three defendants convicted at trial today, 35 defendants have previously pleaded guilty in this investigation, including nine defendants in high-ranking leadership positions:
- Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy. During his plea, Omari Rosero admitted to holding the leadership rank of “High,” and to serving as an acting “Godfather” of the entire UBN gang.
- Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty to racketeering conspiracy. Rosero admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be “faded straight up.”
- Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of “High,” and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine;
- Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics. According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of “Low,” and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony. Moreover, Coker was recorded discussing a potential murder of a rival gang member;
- Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine. According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of “Low”;
- Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud. According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of “High,” and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards;
- Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of Harrison’s plea agreement, Harrison admitted to holding the leadership rank of “High,” and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton;
- MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and heroin trafficking, and according to the factual basis of his plea agreement admitted to holding the leadership rank of “Low”; and
- Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime. According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of “Low.”
The following defendants have also pleaded guilty in this case:
- Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;
- Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking;
- Christopher Dentre Hamrick, aka Red Dot, 28, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
- Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy;
- Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy;
- Joe Tarpeh Johnson, aka JR, Big Pusha, and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
- Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
- Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy;
- Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy;
- James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy;
- Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
- Anthony Bernard Smith, 25, aka Redd Lion, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy;
- Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence;
- Cedric Surratt, aka Hollywood, 5-Star and Lingo, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud; and
- Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.
The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. Trial Attorneys Andrew L. Creighton and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
Federal Jury Convicts Three High-Ranking Bloods Gang Members of Racketeering ConspiracyRead the Press Release
CHARLOTTE, N.C. – Three high-ranking leaders of the Nine Trey Gangsters set of the United Blood Nation (UBN or Bloods) street gang, including the “Godfather” of the organization, who also served as “Chairman” of the UBN, were convicted today of racketeering conspiracy charges.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina and Special Agent in Charge John Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.
Pedro Gutierrez, aka Magoo/Light/Inferno, 45; James Baxton, aka Frank White, 44; and Cynthia Gilmore, aka Cynthia Young/Lady Bynt, 42, all of Raleigh, North Carolina, were convicted by a federal jury sitting in Charlotte following a two-week trial.
“This guilty verdict represents a significant blow against the highest leadership of the Nine Trey Gangsters and the United Blood Nation,” said Acting Assistant Attorney General Cronan. “It reflects the sustained and extensive commitment by federal, state and local law enforcement, including the Criminal Division’s Organized Crime and Gang Section, to disrupt and dismantle this and other prison and street gangs throughout the country.”
“UBN uses violence and intimidation to assert power over our neighborhoods and vicious tactics to bolster the image of an indestructible gang,” said U.S. Attorney Murray. “Today’s convictions of three high-ranking leaders delivered a blow to that myth, proving that UBN gangsters are no different than other common criminals – they can and will be found and prosecuted for their crimes. As we continue our efforts to curb gang violence and devastate gang networks in Western North Carolina, we have a message for the UBN and all other criminal organizations: We are coming for you. Person by person, set by set, clique by clique, and leader by leader. You are in our sights. Your gang will be dismantled and you will be held accountable.”
“These leaders of the UBN thought they were untouchable, continuing to run their criminal enterprise from inside state prison,” said Special Agent in Charge Strong. “Today’s guilty verdicts in federal court abruptly put an end to their dirty business. Do not be mistaken, to anyone who tries to fill the criminal void left by these convictions, you should know, we'll come after you next with the full strength of our federal, local, and state law enforcement partners.”,.
According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since its inception as a prison gang in 1993. UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks. Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star; and the five-pointed crown. UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members. The Nine Trey Gangster set of the UBN refer to themselves as “Billies.”
According to court documents and evidence presented at trial, the UBN is governed by a common set of 31 rules, known as “The 31,” which were originally written by the founders of the UBN. Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders. Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93. A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business. UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.
According to court documents and evidence presented at trial, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from “Scrap,” “1-Star General” through “5-Star General,” “Low,” “High,” and, “Godfather.” Based on evidence introduced during the trial, Gutierrez was a “Godfather” of the Nine Trey Gangsters and had served since 2003 as the “Chairman” of the council that governs the UBN. Gutierrez, together with James Baxton and Omari Rosero, were “the last ones that God put in power” over the UBN. As the Godfather of the set, Gutierrez, along with Baxton, conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections. Trial evidence also established that Gutierrez ordered a gang war in North Carolina in 2011 directing that members of the Bloods gang attack and kill members of a renegade gang called Pretty Tony. The war resulted in numerous injuries among inmates and the lockdown of five North Carolina prisons for six months.
Further, trial evidence established that Cynthia Gilmore, who trafficked cocaine, was a local high-ranking officer who routinely traveled from North Carolina to New York to meet with Defendant Gutierrez, acting as his “eyes” and “voice” in the South. The evidence also showed that Baxton was trafficking heroin within the New York State and prison system. He also was calling and threatening the family members of inmates incarcerated in New York State in an effort to obtain money.
In addition to the three defendants convicted at trial today, 35 defendants have previously pleaded guilty in this investigation, including nine defendants in high-ranking leadership positions:
- Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy. During his plea, Omari Rosero admitted to holding the leadership rank of “High,” and to serving as an acting “Godfather” of the entire UBN gang.
- Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty to racketeering conspiracy. Rosero admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be “faded straight up.”
- Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of “High,” and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine;
- Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics. According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of “Low,” and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony. Moreover, Coker was recorded discussing a potential murder of a rival gang member;
- Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine. According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of “Low”;
- Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud. According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of “High,” and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards;
- Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy. According to the factual basis of Harrison’s plea agreement, Harrison admitted to holding the leadership rank of “High,” and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton;
- MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and heroin trafficking, and according to the factual basis of his plea agreement admitted to holding the leadership rank of “Low”; and
- Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime. According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of “Low.”
The following defendants have also pleaded guilty in this case:
- Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;
- Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking;
- Christopher Dentre Hamrick, aka Red Dot, 28, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
- Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy;
- Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy;
- Joe Tarpeh Johnson, aka JR, Big Pusha, and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
- Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
- Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
- Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy;
- Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy;
- James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy;
- Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
- Anthony Bernard Smith, 25, aka Redd Lion, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy;
- Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence;
- Cedric Surratt, aka Hollywood, 5-Star and Lingo, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
- Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud; and
- Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.
The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations. Trial Attorneys Andrew L. Creighton and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The U.S. Attorney's Office for the Western District of North Carolina Pays Tribute to Fallen Law Enforcement Officers in Observance of "National Police Week"Read the Press Release
CHARLOTTE, N.C. – Communities across the United States gather during National Police Week to remember law enforcement officers who made the ultimate sacrifice in the line of duty, to share their stories of courage and sacrifice, and to honor their memory.
“National Police Week is a time to pay tribute to America’s fallen law enforcement offices for their bravery, their service, and their sacrifice. There is no deed more noble than the willingness to give up one’s own life to serve and protect the lives of others. Remembering those who died protecting us is our modest way of repaying our debt to them and their families. It is also our hope that our fallen heroes’ stories and legacy will serve as an inspiration to others and as an example of selfless public service,” said R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.”
In 1962, President Kennedy proclaimed May 15 as National Peace Officers Memorial Day, and the calendar week in which May 15 falls as National Police Week. Established by a joint resolution of Congress in 1962, National Police Week pays special recognition to those law enforcement officers who have lost their lives in the line of duty for the safety and protection of others.
This year, the names of 360 U.S. law enforcement officers killed in the line of duty will be added to the National Law Enforcement Officers Memorial in Washington, D.C., including the names of 129 officers who made the ultimate sacrifice during 2017, and 231 officers who died earlier in history but whose stories of sacrifice had not been previously documented. With the addition of the 360 names this year, a total of 21,541 officers’ names are engraved on the Memorial. The names represent fallen law enforcement officers from all 50 states, the District of Columbia, U.S. territories, federal law enforcement, and military police agencies.
Among those added this year will be:
- Major Jay R. Memmelaar, Jr., Goldsboro Police Department, who died in February 2017.
- Sargent Meggan L. Callahan, North Carolina Department of Public Safety – Division of Prisons, who died in April 2017.
- Officer Justin Smith, North Carolina Department of Public Safety – Division of Prisons, who died in October 2017.
- Officer Wendy Shannon, North Carolina Department of Public Safety – Division of Prisons, who died in October 2017.
- Correction Enterprises Manager Veronica Darden, North Carolina Department of Public Safety – Division of Prisons, who died in October 2017.
U.S. Attorney Murray noted that along with remembering the officers who made the ultimate sacrifice, “National Police Week is an opportunity to thank and recognize everyone in the law enforcement community, who bravely stand on the front lines each day. Like many others before them, these officers took an oath to serve and protect our neighborhoods, our homes, and our loved ones from harm. And they do it every day, willingly and bravely, despite the dangers and challenges that come with wearing their uniform. I am thankful for all they do to keep our communities safe and their willingness to answer the ultimate call of duty.”
On Friday, May 18, 2018, U.S. Attorney Murray will speak at the Peace Officer Memorial Service in Catawba County, sponsored by the Catawba County Fraternal Order of Police Lodge # 26. The Memorial Service will be held at the Catawba Memorial Park, located at 3060 Highway 70 SE, in Hickory, N.C.
State and Local Law Enforcement Agencies to Receive More Than $730,296 in Federally-Forfeited FundsRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney R. Andrew Murray announced today the distribution of $730,296 in federally-forfeited funds to state and local law enforcement agencies, resulting from a forfeiture action against convicted drug trafficker James Alexander Brown.
The Justice Department recovered more than $1 million from Brown, of which 80 percent will be shared with 15 law enforcement agencies pursuant to the Department of Justice’s Equitable Sharing Program.
“My office’s criminal and forfeiture prosecutors work hand in hand to put drug traffickers behind bars and to take away the proceeds of their illegal drug trade,” said U.S. Attorney Murray in making today’s announcement. “Asset forfeiture is a key tool in our efforts to stem the flow of drugs into our neighborhoods. Through the Equitable Sharing Program, we are able to seize drug traffickers’ ill-gotten gains and assist our law enforcement partners with obtaining the resources they need to effectively protect their communities.”
“Taking away the funds from drug trafficking organizations continues to be one of DEA’s top priorities. Doing so cripples and eventually topples these criminal enterprises. The cooperation with our law enforcement counterparts and the subsequent prosecution by the U.S. Attorney’s Office is crucial to the success of these forfeitures,” said Robert J. Murphy, Special Agent in Charge of the DEA’s Atlanta Field Division regarding the Equitable Sharing Program.
According to court documents, James Alexander Brown was part of a drug distribution ring, and he was responsible for trafficking large amounts of high grade marijuana from California into North Carolina. Brown stored the marijuana in storage units in Winston Salem, N.C. and distributed it in the Charlotte area. Over the course of the investigation, state and local law enforcement provided invaluable assistance to DEA including, among other things, surveillance operations, execution of search warrants, and Brown’s apprehension. As a result of the joint investigation, Brown was convicted of conspiracy to possess with intent to distribute marijuana and was sentenced to prison.
As part of his plea agreement, Brown forfeited to the United States a Lexus automobile, a Sea Ray boat he used for drug transactions, and $1,058,400 that Brown had transferred to a bank account in Singapore. The U.S. District Court ultimately ordered the forfeiture of the funds, the vehicle, and the boat. Net proceeds of the sale of the vehicle and boat were previously shared with the law enforcement agencies that assisted in the investigation.
Eighty percent of the more than $1 million in money seized and repatriated from Singapore will now be shared among state and local law enforcement agencies who devoted substantial resources to the investigation, including, but not limited to, the following agencies operating in and around Charlotte: the Pineville Police Department ($381,024); the North Carolina Division of Motor Vehicles ($52,920); the North Carolina Highway Patrol ($42,336); the Charlotte Mecklenburg Police Department ($42,336); the Cornelius Police Department ($42,336); the Huntersville Police Department ($42,336); the Mint Hill Police Department ($42,336); the Monroe Police Department ($42,336); and the Union County Sheriff’s Office ($42,336).
U.S. Attorney Murray commended the assistance and cooperation of the agencies involved in Brown’s investigation, all of which are identified below, and stated, “Brown was a large-scale drug trafficker, profiting at the expense of our communities. Now, through sharing, the Justice Department will use Brown’s money to reinvest in law enforcement and safety in those same communities that Brown’s criminal conduct targeted. My office is committed to using the Equitable Sharing Program to support our state and local law enforcement partners in fulfilling their mission to the people of the Western District. The practice of asset forfeiture, when done right, punishes offenders like Brown and takes the profit out of crime, thus serving as a serious deterrent.”
The asset forfeiture action was handled by Assistant U.S. Attorney Benjamin Bain-Creed. Assistant U.S. Attorney Dana Washington handled the criminal prosecution.
Agency
Sharing Percentage
Amount
15th Circuit Drug Enforcement Unit
3%
$ 31,752.00
Arkansas State Police Department
0.50%
$ 5,292.00
Charlotte-Mecklenburg Police Department
4%
$ 42,336.00
Cornelius Police Department
4%
$ 42,336.00
Horry County Police Department
2%
$ 21,168.00
Huntersville Police Department
4%
$ 42,336.00
Mint Hill Police Department
4%
$ 42,336.00
Monroe Police Department
4%
$ 42,336.00
N.C. Division of Motor Vehicles
5%
$ 52,920.00
N.C. Highway Patrol
4%
$ 42,336.00
Pineville Police Department
36%
$ 381,024.00
Salisbury Police Department
2%
$ 21,168.00
Vernon Police Department
3%
$ 31,752.00
Winston-Salem Police Department
0.50%
$ 5,292.00
Union County Sheriff’s Department
4%
$ 42,336.00
Assets Forfeiture Fund (DEA contribution)
20%
$ 211,680.00
TOTAL:
100%
$ 1,058,400.00
Federal Judge Hands Down Life Prison Sentences to Three United Blood Nation Gang MembersRead the Press Release
CHARLOTTE, N.C. - Three members of the United Bloods Nation gang (UBN or Bloods) were sentenced today on charges of conspiracy to participate in racketeering activity (RICO) and murder, stemming from the 2014 double-murder of Douglas and Deborah London and the 2013 murder of Kwamne Clyburn, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. presided over the sentencing hearings.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department join U.S. Attorney Murray in making today’s announcement.
Judge Cogburn sentenced Randall Hankins, II, 24, of Charlotte, to three consecutive life sentences, following his 2017 jury conviction of RICO conspiracy; murder in aid of racketeering; and use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence, for his role in the murder of Douglas and Deborah London.
Nana Yaw Adoma, 23, of Charlotte, was sentenced to two consecutive life sentences and 25 years in prison after the jury convicted him of RICO conspiracy; murder in aid of racketeering and use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in death for Clyburn’s murder; assault with a dangerous weapon in aid of racketeering; and use or carry of a firearm in relation to a crime of violence and possession of firearm in furtherance of a crime of violence for his role in the armed robbery of the Londons’ business.
Judge Cogburn ordered Akheem McDonald, 24, of Charlotte, to serve two consecutive life sentences following his jury conviction of RICO conspiracy, murder in aid of racketeering, and use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in death for Clyburn’s murder.
Judge Cogburn previously sentenced nine others for their involvement in the murders: Jamell Lamon Cureton, Malcolm Jarrel Hartley and Rahkeem Lee McDonald were each sentenced to life in prison; David Lee Fudge was sentenced to 26 years; Ibn Rashaan Kornegay was sentenced to 23 years; Nehemijel Maurice Houston was sentenced to 20 years; and Brianna Johnson, Daquan Lamar Everrett, and Centrilla Shardon Leach were each sentenced to 13 years in prison.
According to court documents, on May 25, 2014, Adoma, Cureton, and Fudge robbed The Mattress Warehouse, a store owned by Douglas and Deborah London. The three were later charged in connection with that robbery. According to court records, Cureton and other Bloods gang members discussed that Douglas London was the only eye witness that could identify Cureton, and that he needed to be eliminated. Over the next months, the gang members exchanged correspondence and conducted numerous in-person and telephonic gang meetings, during which they discussed and planned the murder of Douglas London.
On or about October 23, 2014, Johnson drove Hartley to South Carolina, where Hartley shot and killed the couple at their home. The pair then returned to Charlotte, first stopping at Rahkeem McDonald’s house to dispose of the gun. Afterwards, Hartley and Johnson returned to Hartley’s apartment, where they met with other gang members to celebrate the couple’s murders. As a result of carrying out the gang leadership orders, Hartley was “ranked up” or “promoted” to a 2-Star General. Shortly after the murders, Cureton ordered the gang to remain silent about the Londons’ murders. Kornegay also conducted a telephone gang meeting with other UBN gang members, during which he directed them to lay low to avoid contact with law enforcement.
Over the course of the investigation into the mattress store robbery and the Londons’ murders, law enforcement determined that Cureton, Adoma, and Ahkeem McDonald were responsible for the August 2013 murder of Kwamne Clyburn, who was killed for “false claiming,” (falsely claiming to be a Bloods member), and because Clyburn failed a “DNA check,” meaning the gang members could not verify Clyburn’s claim to be a Blood.
In making today’s announcement, U.S. Attorney Murray thanked the FBI for leading the investigation, and commended CMPD and the York County Sheriff’s Office for their invaluable assistance throughout the investigation and prosecution of the case. Assistant U.S. Attorney Don Gast handled the prosecution.
North Carolina Podiatrist and His Son Face Wire Fraud Charges in Connection with Unemployment Insurance Benefits SchemeRead the Press Release
ASHEVILLE, N.C. – A North Carolina podiatrist and his son are facing federal charges in connection with an unemployment insurance benefits scheme, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. A criminal bill of information was filed in U.S. District Court in Asheville today, charging Dr. Jerry Gross, 72, and his son, Jason Lee Gross, 51, both of Rutherfordton, N.C., with wire fraud.
Nick S. Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas; Robert Schurmeier, Director of the North Carolina State Bureau of Investigation; and Rafiq Ahmad, Special Agent in Charge of the Department of Labor-Office of the Inspector General, join U.S. Attorney Murray in making today’s announcement.
According to filed court documents, Dr. Jerry Gross owned and operated the Foot & Ankle Center of the Carolinas, P.A. (Foot & Ankle Center), located in Forest City, N.C. Dr. Jerry Gross’s son, Jason Lee Gross, also worked at the Foot & Ankle Center, managing the practice’s business operations, including payroll and personnel decisions. Filed documents show that, from September 2009 to March 2013, Dr. Jerry Gross and Jason Lee Gross carried out a scheme to defraud the State of North Carolina by placing employees of the Foot & Ankle Center on Unemployment Insurance Benefits (“UI Benefits”) while those employees continued to work at the business in excess of what was permitted by the program eligibility requirements. According to court records, the scheme enabled Foot & Ankle Center to survive the economic downturn during those years by creating a free labor force.
According to filed court documents, during the relevant time period, Jason Lee Gross laid off, at various times, employees of the Foot & Ankle Center, including himself and Dr. Jerry Gross. Court records show that Jason Lee Gross made UI Benefits claims on behalf of the laid off employees, including himself and his father. Jason Lee Gross certified the initial eligibility for UI Benefits of each of the employees, and continued to certify their eligibility on a weekly basis for the UI Benefits they received. Jason Lee Gross did so despite knowing that at least four of the employees regularly failed to comply with the program eligibility requirements, including by regularly working in excess of the hours allowed by the program.
Court records show that Dr. Jerry Gross did not file any such certifications, but knew that Jason Lee Gross had placed the employees on unemployment, and was aware that at least four of those employees continued to work on a full-time or near-full-time basis, while the practice continued to generate revenue. Court documents further show that Dr. Jerry Gross also collected considerable UI Benefits himself, despite deliberately turning a blind eye to whether or not he was complying with the eligibility requirements for the program, when in fact he was not complying. Court records show that the scheme caused the State of North Carolina to pay out at least $149,970 in UI Benefits to laid-off Foot & Ankle center employees that did not meet the eligibility requirements.
The maximum penalty for the wire fraud charge is 20 years in prison and a $1,000,000 fine. Signed plea agreements were also filed today. Plea hearings have not been set.
In making today’s announcement U.S. Attorney Murray thanked HSI, SBI, and the Department of Labor for their investigation of the case.
Assistant U.S. Attorney Daniel Bradley of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
Georgia Supplier of Methamphetamine in Western North Carolina Is Sentenced to More Than 21 YearsRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Richard Arlee Champion, 31, of Atlanta, Georgia, to 262 months in prison, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also ordered Champion to serve 10 years under court supervision after he is released from prison.
According to filed court documents and court proceedings, Champion and his codefendant, Marissa Jade Burt, 34, of Whittier, N.C. were involved in a drug conspiracy that trafficked large amounts of methamphetamine to the Eastern Band of Cherokee Indians, and Jackson and Swain Counties. Court records show that Champion was the main source of supply for Burt and his other for codefendants: Jordan Heath Oocumma, 31, of Cherokee, N.C., John Allen Wise, 39, of Franklin, N.C., Jillian Monike Swimmer, 31, of Cherokee, and Anthony Michael Dealto, 32, of Bryson City, N.C. According to court records, Burt travelled regularly to Atlanta to pick up the methamphetamine, which she then distributed to her co-conspirators. A federal jury convicted Champion in January 2018 of conspiracy to distribute and aiding and abetting to possess with intent to distribute.
In sentencing Champion, Judge Reidinger said being a supplier of methamphetamine comes with heavy penalties.
U.S. Attorney Murray thanked the Drug Enforcement Administration (DEA), the Bureau of Indians Affairs (BIA), the Cherokee-Indian Police Department, the Swain County Sheriff’s Office, and the North Carolina State Highway Patrol for their investigation of the case.
Assistant U.S. Attorney Christopher Hess prosecuted the case.
Iredell Co. Man Sentenced to 19 Years on Drug and Gun ChargesRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Frank D. Whitney has sentenced Jackson Suddreth Tyler, 22, of Troutman, N.C. to 228 months in prison, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Whitney also ordered Tyler to serve six years under court supervision after he is released from prison.
U.S. Attorney Murray is joined in making today’s announcement by Wayne Dixie Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Sheriff Darren Campbell of the Iredell County Sheriff’s Office.
According to filed court documents and court proceedings, on January 24, 2017, the Iredell County Sheriff’s Office received a 911 call for service at a residence located in Troutman. Upon arrival at the residence, law enforcement found Tyler and a deceased male who had sustained a gunshot wound. Law enforcement determined that approximately an hour had passed before the 911 call was made in regards to the shooting.
According to court records, Tyler told law enforcement he had not shot the victim. Tyler indicated that the victim had entered the residence armed with a pistol and wearing a mask, and that the victim had shot himself. Contrary to Tyler’s statement about the victim shooting himself, law enforcement determined that a different firearm was used to kill the deceased.
While executing a search warrant at the residence, law enforcement determined that Tyler was manufacturing ecstacy pills and firearms. Law enforcement seized from the residence large capacity magazines and 33 firearms, two of which were stolen and one with an obilerated serial number, gun parts, and 6,051 rounds of ammunition, as well as items used in manufactuing MDMA (ecstacy) pills, and more than two kilograms of MDMA pills. Law enforcement also located underneth the victim a firearm and an empty magazine. Also, according to court records, law enforcement determined that during the delay between the time the deceased was shot and 911 was called, the scene had been disturbed and items were removed from the home.
Tyler pleaded guilty in October 2017 to possession with intent to distribute MDMA and discharging a firearm during and in furtherance to a drug trafficking crime.
In sentencing Tyler, Judge Whitney said that Tyler was involved in a “deadly combination of criminal events,” noting the dangerousness of guns and drugs.
U.S. Attorney Murray thanked the ATF and the Iredell County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Jennifer Dillon of the U.S. Attorney’s Office in Charlotte prosecuted the case.