Western District of North Carolina
Press releases recorded for this federal judicial district.
Former North Carolina Police Sergeant Charged with Using Excessive Force Against an ArresteeRead the Press Release
CHARLOTTE, N.C. – The Department of Justice today announced that Robert George, a former sergeant with the Hickory Police Department (HPD), has been indicted by a federal grand jury on charges of using excessive force against a female arrestee, and for obstructing justice.
The indictment alleges that on Nov. 11, 2013, George assaulted a female victim, identified in the indictment by the initials C.D., by slamming her face-first to the ground, causing her to suffer bodily injury. The following day, George allegedly wrote a false police report to cover up the offense.
George, 45, of Hickory, North Carolina, was arraigned on these charges in federal court.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Department of Justice Assistant United States Attorney Kimlani Ford and Civil Rights Division Trial Attorney Sanjay Patel.
North Carolina Man Is Sentenced to 14 Months for Interfering with Airport Security Screening PersonnelRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Robert J. Conrad, Jr. sentenced Jordan Lee Moore, 31, of Winston Salem, N.C. to 14 months in prison and two years of supervised release on charges of interfering with security screening personnel at Charlotte Douglas International Airport (Charlotte Douglas), announced R. 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, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department.
According to court documents and today’s sentencing hearing, on March 30, 2017, Moore had two separate altercation incidents involving airport security screening personnel at Charlotte Douglas. Moore, a then employee of American Airlines, attempted to force his way through the TSA Pre-Check lane, without proper authorization. Court records show that the first incident occurred at approximately 5:25 p.m., during which Moore used threats and racially derogatory terms toward airport security personnel, while they attempted to stop him from advancing through airport security checkpoints. Moore did not have proper TSA-precheck security designations on his boarding pass. Because of his conduct, Moore was instructed by airport security personnel and CMPD officers that he could not fly out of Charlotte Douglas Airport and was ordered to leave the airport. Moore used more derogatory terms toward security personnel, before eventually exiting the airport.
According to court records, Moore later returned to Charlotte Douglas Airport that same evening. Around approximately 7:30 p.m., Moore again attempted to pass through a security checkpoint at the airport, when he was approached by an airport security officer who recognized Moore based on information disseminated at the airport stemming from the earlier incident. The security officer asked Moore for his identification and advised Moore he was not permitted to advance through security, because of his previous incident. Court records show that Moore ignored the security officer’s request and proceeded to the baggage screening area. Security officers again told Moore that he was not allowed to return to the airport and asked him to leave. Moore ignored their orders, used explicit and threatening terms, and continued to proceed through the airport checkpoint. A CMPD officer at the scene then attempted to detain Moore, who refused the officer’s commands and violently resisted arrest. Moore was eventually arrested and continued acting in a combative nature, even after he was placed in a police car.
In sentencing Moore, Judge Conrad commented on the importance of respecting airport security personnel, the TSA officers, and maintaining proper decorum at the airport.
Moore pleaded guilty to one count of interference with airport security screening personnel and is currently in federal custody. Moore will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
The FBI and CMPD led the investigation. Assistant U.S. Attorneys Sanjeev Bhasker and Mike Savage, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Indian Trail Man Is Sentenced to 20 Years in Prison on Drug Trafficking Conspiracy ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced today Derek Joseph Parker, 33, of Indian Trail, N.C. to 20 years in federal prison for his role in drug trafficking conspiracy that resulted in a heroin overdose death, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Chief Kerr Putney of the Charlotte Mecklenburg Police Department; Chief Rob Hunter of the Matthews Police Department; Sheriff Eddie Cathey of the Union County Sheriff’s Office; and Chief J. Bryan Gilliard, Monroe Police Department join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, over the course of a seven-month investigation, law enforcement identified Parker as a regional drug trafficker in a Drug Trafficking Organization (DTO) distributing heroin in the greater Charlotte area. Court records show that on December 30, 2016, Parker sold approximately two grams of heroin for $180 to a male individual, which resulted in an overdose death. Court records show the transaction occurred in the parking lot of the Microtel Inn, located at 1603 Matthews-Mint Hill Rd., in Matthews, N.C. The following day, hotel housekeeping found a male unresponsive inside one of the hotel rooms.
According to court records, the deceased male had died from a heroin overdose. Law enforcement identified Parker as the person who had sold the heroin to the deceased male, and confirmed the cause of death as a heroin overdose. Subsequent to this overdose death, Parker continued to sell heroin until he was identified as the regional drug trafficker who caused the male’s overdose death.
According to court records, Parker continued to engage in drug trafficking, and sold, on multiple occasions, approximately a total of 2,000 grams of heroin, until he was arrested on July 6, 2017. When law enforcement arrested Parker they also seized from his residence narcotics (Xanax pills and heroin), drug scales, and a loaded firearm. Filed court documents show that Parker told law enforcement that he learned of the deceased male’s heroin overdose in January 2017, and continued to sell heroin thereafter, until he was arrested.
In sentencing Parker, Judge Conrad commented on the serious nature of our nation’s opioid epidemic. When imposing a 20-year prison sentence, Judge Conrad stated that Parker’s conduct of continuing to sell narcotics after the heroin death occurred was appalling and unacceptable.
Parker 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
DEA, CMPD, the Matthews Police Department, the Union County Sheriff’s Office, and the Monroe Police Department led the investigation. Assistant U.S. Attorney Sanjeev Bhasker, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Federal Indictment Charges Former Credit Union President & CEO with Embezzlement and Related ChargesRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has indicted Saundra Torrence, a/k/a Saundra Scales, 61, of Charlotte, for her role in defrauding a Charlotte-based credit union of more than $375,000 in the aftermath of the financial crisis, announced R. 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, and Special Inspector General Christy Goldsmith Romero, of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
According to allegations contained in the indictment, from 1985 to August 2012, Torrence was the President and Chief Executive Officer (CEO) of First Legacy Community Credit Union (FLCCU), which is headquartered in Charlotte. In the fall of 2010, FLCCU received $1,000,000 as part of a program under the U.S. Department of Treasury’s Troubled Asset Relief Program (TARP), which allowed the Treasury Department to make investments in certain financial institutions that provided credit and financial services to underserved populations and communities.
The indictment alleges that Torrence abused her position as FLCCU’s President and CEO by, among other things, making false entries in the books and records of the credit union, misapplying and stealing funds from the credit union, and fraudulently using the identity of at least one third party victim to obtain a loan from FLCCU. Torrence’s wrongdoing caused FLCCU to suffer significant losses while she personally received more than $110,000 from the misconduct, exposed the credit union to the risk of additional losses, and caused regulatory action against FLCCU.
Specifically, the indictment alleges that, during the relevant time period, Torrence approved the payment of compensation to herself and others without authorization and contrary to the policies of FLCCU. This included compensation for unused sick leave, compensation for the sale of GAP insurance in connection with automobile loans, and other uncategorized compensation. The indictment also alleges that much of this compensation was not reported as taxable income, which caused underreporting and underpayment of federal and state income and/or employment taxes.
The indictment further alleges that Torrence fraudulently obtained a loan from FLCCU in the name of at least one third-party victim, K.H. In connection with this loan, Torrence falsified documentation and circumvented FLCCU policies and reporting requirements. The indictment also alleges that Torrence improperly transferred funds between and among various third-party accounts at FLCCU and her own accounts at FLCCU. On certain occasions, Torrence improperly transferred the proceeds of loans given by FLCCU to third parties into her own accounts. To conceal her wrongdoing, Torrence falsified documents and made and caused false entries in the books and records of FLCCU. These false entries caused FLCCU’s reported financial results to be inaccurate.
Torrence is charged with 13 counts of theft and embezzlement from a financial institution; 19 counts of making or causing false entries; and one count of fraudulent participation. Each of the charged counts carries a maximum penalty of 30 years in prison, a $1 million fine, or both.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until been proven guilty beyond a reasonable doubt in a court of law.
The investigation of the case was handled by the FBI and SIGTARP. Assistant United States Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
Georgia Man Sentenced Man Sentenced to More Than Eight Years for Methamphetamine Distribution ConspiracyRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today Roger Darryl Brooks, 49, of Dallas, Georgia, to 100 months in prison and five years of supervised release for trafficking methamphetamine, 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 Sheriff Chris Francis of the Rutherford County Sheriff’s Office join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and court proceedings, Brooks and his codefendant, Tony Lee Stanfield, were involved in a drug conspiracy that trafficked large amounts of methamphetamine to Rutherford County and elsewhere. Court records show that Brooks was the main source of supply in Georgia, and Stanfield was responsible for delivering the drugs to Western North Carolina.
Law enforcement arrested Stanfield in January 2017, when he attempted to deliver nearly half a kilogram (464 grams) of 96% pure methamphetamine to Rutherford County. According to plea-related documents, Brooks was the supplier of methamphetamine that Stanfield was attempting to deliver to an individual in Rutherford County.
Brooks pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. 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. Stanfield was previously sentenced to 10 years in prison for his role in the drug conspiracy.
ATF and the Rutherford County Sheriff’s Office led the investigation. Assistant U.S. Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Matthews, N.C. Man Sentenced to 16 ½ Years for His Role in Union County Drug Trafficking ConspiracyRead the Press Release
CHARLOTTE, N.C. – United States Attorney R. Andrew Murray announced today that a Matthews, N.C. man was sentenced to 198 months in prison and five years of supervised release for his role in a drug trafficking conspiracy. Nestor Javier Martin Fernandez, 37, previously pleaded guilty to possession with intent to distribute methamphetamine and cocaine, and possession of a firearm in furtherance of a drug trafficking crime.
According to filed court documents and court proceedings, on November 12, 2017, law enforcement conducted a traffic stop of the vehicle Fernandez was driving and arrested Fernandez on outstanding warrants. Over the course of the traffic stop, law enforcement recovered from Fernandez’s vehicle more than 2 kilograms of methamphetamine, cocaine, and two firearms.
In making today’s announcement, U.S. Attorney Murray thanked the Federal Bureau of Investigation (FBI), the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Monroe Police Department, and the Union County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Jennifer Dillon and Special Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte prosecuted 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.
Charlotte Man Sentenced to Prison for Refund Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Today, United States District Judge Max O. Cogburn, Jr. sentenced Boakai Boker, 29, of Charlotte, to 57 months in prison, followed by two years of supervised release, in connection with a stolen identity refund fraud scheme, announced R. Andrew Murray, United States Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by Reginald DeMatteis, Special Agent in Charge of the U.S. Secret Service, Charlotte Field Office (USSS); David M. McGinnis, Inspector in Charge of the United States Postal Inspection Service; and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to court documents, trial, evidence, witness testimony, and today’s sentencing hearing, beginning in January 2014, Boker executed a scheme to submit fake tax returns to the IRS, using stolen personal identifying information, including names, dates of birth, and Social Security numbers for dozens of individuals. For example, according to trial evidence, Boker used the personal information of an individual identified as “E.P.” to file a fake tax return, which resulted in Boker gaining access to more than $40,000 in fraudulent proceeds.
Court records show that Boker directed the IRS to send the fraudulent refund checks to addresses in Mooresville, N.C. which he controlled. Boker then deposited the proceeds of the scheme into fraudulent bank accounts to which he had access. In July 2017, a federal jury convicted Boker of wire fraud, bank fraud, false claims, and aggravated identity theft in connection with the scheme.
U.S. Attorney Murray thanked the Secret Service, USPIS, and IRS-CI for conducting the investigation and the Charlotte-Mecklenburg Police Department for its assistance with this case.
Assistant U.S. Attorney Taylor Phillips of the U.S. Attorney’s Office in Charlotte prosecuted the case.
For 2018, the IRS, the states and the tax industry joined together to enact new safeguards and take additional actions to combat tax-related identity theft. Among other things, the IRS maintains an identity protection website with information and guidance that can be found at:
https://www.irs.gov/identity-theft-fraud-scams/identity-protection.
Charlotte Man Convicted of Murder and Robbery Is Sentenced to LIfe in PrisonRead the Press Release
CHARLOTTE, N.C. –Damarcus Donte Ivey, 36, of Charlotte, was sentenced today by U.S. District Judge Max O. Cogburn, Jr. to life in prison, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. A federal jury convicted Ivey in April 2017 of Hobbs Act robbery and committing murder while using and possessing a firearm during and in furtherance of the robbery.
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; 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.
According to court documents, witness testimony, evidence presented at Ivey’s trial, and today’s sentencing hearing:
On September 10, 2009, Ivey and Kevin Bishop robbed Club Nikki’s, located at 3001 Little Rock Road, in Charlotte. Over the course of the robbery, Ivey and Bishop pointed guns at the club’s patrons and staff, ordered them on the floor, and took personal items from the patrons and cash from the club. Trial evidence showed Ivey take items from the male victim before he fired a shot that killed him. Ivey and Bishop then fled the scene in a Ford F-150. Six minutes after the initial 9-1-1 call, a CMPD officer observed Ivey and Bishop exiting I-85 onto Beatties Ford Road. A chase ensued that ended in a vehicle crash and Ivey and Bishop attempted to flee on foot from CMPD officers. Both men were apprehended within minutes and were found in possession of proceeds from the robbery. Inside the Ford F-150, officers located the wallet of one of the club’s patrons and $355 in cash scattered about the floorboard.
Ivey 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. Kevin Bishop was convicted on state charges in 2014 and was given a 16-20 year sentence for his role in the robbery.
In making today’s announcement, U.S. Attorney Murray commended CMPD, the FBI, and ATF for their investigation of the case and thanked the Mecklenburg County District Attorney’s Office for their cooperation.
Assistant U.S. Attorneys Craig Randall and William Bozin of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Justice Department Announces Initiative to Combat Sexual Harassment in HousingRead the Press Release
CHARLOTTE, N.C. - Today, as the Department of Justice recognizes the 50th Anniversary of the Fair Housing Act, Attorney General Jeff Sessions announced the nationwide rollout of an initiative aimed at increasing awareness and reporting of sexual harassment in housing. The announcement includes an interagency task force between the Department of Housing and Urban Development (HUD) and the Justice Department to combat sexual harassment in housing, an outreach toolkit, and a public awareness campaign. This three-pronged approach will strengthen the Department’s efforts to combat sexual harassment in housing.
“Sexual harassment in housing is illegal, immoral, and unacceptable," said Attorney General Sessions. “It is all too common today, as too many landlords, managers, and their employees attempt to prey on vulnerable women. We will not hesitate to pursue these predators and enforce the law. In October, I ordered a new initiative to bring more of these cases, and we have already won relief for 15 victims. Today we announce three new steps to make the initiative more effective and to win more cases. I want to thank the dedicated and committed professionals in our Civil Rights Division and our partners in the Department of Housing and Urban Development for their hard work in this effort. We will continue to aggressively pursue harassers, because everyone has a right to be safe in their home.”
“A person’s home should be a place of safety and security. Unfortunately, that does not hold true for many individuals, who quietly endure sexual harassment and sexual aggression from their landlords or property managers because they are afraid of losing their homes. Sexual harassment in housing and lending is both reprehensible and illegal. We are committed to uncovering such violations and prosecuting perpetrators to the fullest extent of the law,” said R. Andrew Murray, U. S. Attorney for the Western District of North Carolina.
“All discrimination stains the very fabric of our nation, but HUD is especially focused on protecting the right of everyone to feel safe and secure in their homes, free from unwanted sexual harassment,” said Secretary Ben Carson. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Part of our mission at HUD is to provide safe housing and we will remain diligent in this mission to protect those we serve. I look forward to working with Attorney General Sessions and the Department of Justice as part of this task force to bring an end to this type of discrimination.”
In October 2017, the Justice Department announced an initiative to combat sexual harassment in housing and launched pilot programs in D.C. and the Western District of Virginia. The initiative sought to increase the Department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. During the pilots, the Department developed and tested ways to better connect both with victims of sexual harassment in housing and with those organizations that victims may turn to first for help – including law enforcement, legal services providers, public housing authorities, sexual assault services providers, and shelters. The Department also tested certain aspects of the initiative in other jurisdictions, including New Jersey, the Central District of California, Massachusetts, Vermont, and Michigan.
The two pilot programs generated an upswing in harassment reporting to the Department from both D.C. and the Western District of Virginia. In D.C., the Department generated six leads since the October 2017 launch. In Virginia, the Department generated three leads. While the Justice Department recognizes that leads and investigations do not always lead to enforcement actions, the pilot program’s results—when extrapolated across all the U.S. Attorney’s Offices across the country—could lead to hundreds of new reports of sexual harassment in housing across the country.
Because of these promising results, the Department is rolling out three major components to the Initiative.
First, the new HUD-DOJ Task Force to Combat Sexual Harassment in Housing will drive a shared strategy between the Department and HUD for combatting sexual harassment in housing across the country. It will focus on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies.
Second, the outreach toolkit is designed to leverage the Justice Department’s nationwide network of U.S. Attorney’s Offices. The toolkit provides templates, guidance, and checklists based on pilot program feedback. It ultimately will amplify available enforcement resources and help victims of sexual harassment connect with the Department.
Third, the public awareness campaign has three major components: a partnership package with relevant stakeholders, launch of a social media campaign, and Public Service Announcements (PSAs) run by the Executive Office for U.S. Attorneys. The campaign is specifically designed to raise awareness, and make it easier for victims all over the country to find resources and report harassment.
More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of sexual harassment in housing should call the Department at 1-844-380-6178, send an e-mail to [email protected], or contact HUD at 1-800-669-9777. If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.
Georgia Man Sentenced in International Parental Kidnapping CaseRead the Press Release
CHARLOTTE, N.C. – United States Attorney R. Andrew Murray announced today that Divett Lidrell Mays, 46, of Atlanta, Georgia, was sentenced to 18 months in prison for kidnapping his daughter and fleeing to Egypt. U.S. District Judge Robert J. Conrad, Jr. also sentenced Mays to three years of supervised release after he is released from prison.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents and court proceedings, on May 26, 2011, Mays picked up his seven-year-old daughter, K.M., from her mother’s Charlotte home for a custodial visit. Mays and K.M.’s mother had agreed that he could take her to Atlanta for the weekend and that he would return K.M. to Charlotte on either May 29 or 30, 2011. According to court records, Mays did not return K.M. to Charlotte as agreed. Instead, without the permission or knowledge of K.M.’s mother, Mays purchased plane tickets and flew with K.M. to Egypt.
Court records show that K.M. and Mays departed the United States on May 30, 2011, and arrived in Egypt on June 1, 2011. Mays retained K.M in Egypt until December 2014, when she was reunited with her mother through an FBI/U.S. State Department ruse and returned to the United States. Around May 2017, Egyptian authorities realized that Mays, a U.S. citizen, had no immigration status in Egypt and that he had outstanding charges in the U.S., so they facilitated Mays’ removal to the United States.
According to court records, in order for K.M. to travel from the U.S. to Egypt, she needed a passport, which Mays obtained by fraud. Over the course of the investigation, it was determined that on August 17, 2010, Mays went to a U.S. Post Office in Fulton County, Georgia, and submitted a signed and notarized two-parent consent form along with the passport application for K.M. The investigation further revealed that the application contained false information and a forged signature for K.M.’s mother on the parental consent form. The passport was later issued, and Mays used the fraudulently obtained passport to transport K.M. to Egypt. K.M.’s mother did not give consent for Mays to obtain a passport for K.M.
Mays is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray commended the FBI for their work on this case.
Assistant U.S. Attorney Kimlani Ford, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Former Buncombe County Manager and Her Son Indicted on Federal ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney R. Andrew Murray announced today that the former Buncombe County Manager, Wanda Skillington Greene, 66, and her son, Michael Gene Greene, 47, both of Arden, N.C., are facing federal charges related to the misuse of public funds. A criminal bill of indictment charges Wanda Greene and Michael Greene with conspiracy to embezzle, steal, obtain by fraud or misapply Buncombe County funds and wire fraud offenses. Wanda Greene is also charged with embezzling public funds and aiding and abetting such embezzlement.
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. Michael Greene began his employment with Buncombe County in 2004, until he resigned in August 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, from about 2007 to August 12, 2017, Wanda Greene and Michael Greene carried out a conspiracy to embezzle public funds, by misusing their government credit cards, also known as PCards, issued to them by Buncombe County, and by using the PCards of other County employees, to make approximately $200,000 worth of improper purchases.
The indictment alleges that, on multiple occasions during the relevant time period, Wanda Greene improperly used her government issued PCards to purchase multiple gift cards totaling $21,760 from various retailers and restaurants, including Walmart, Target, Olive Garden, and Cracker Barrel. For example, on or about December 6, 2007, Wanda Greene used two different PCards to purchase 10 separate $500 Walmart gift cards totaling $5,000. The indictment alleges that Wanda Greene split the purchase of the gift cards onto two different PCards, to avoid exceeding the County’s policy spending limit of $5,000. Wanda Greene then used the gift cards to buy items for herself and others, including groceries, personal hygiene products, clothing, wine and make-up. Wanda Greene gave some of the gift cards to other individuals who also used them to make improper purchases.
In addition to using the County’s credit cards to purchase gift cards, Wanda Greene also made personal purchases on her PCard at various retail stores, including purchases totaling $18,256 at Best Buy, $10,718 at Target, and $6,479.03 at TJ Maxx, among others. Furthermore, the indictment alleges that Wanda Greene used her PCard to pay a total of $15,308 for electronic devices and for service from telecommunications carriers that were personal use items and services.
According to the indictment, in 2011, Wanda Greene ceased using any County credit cards issued to her, and informed a Buncombe County employee that she was returning the PCards because the records of her use of those cards could be subject to disclosure under North Carolina law. From that time forward, Wanda Greene allegedly used PCards assigned to subordinate county employees, or directed the subordinate employees to use their PCards to make improper purchases for her, Michael Greene, and other individuals. According to the indictment, Wanda Greene misused the employees’ PCard information to purchase $75,400 in gift cards; to pay for personal use wireless services and wireless devices, with a total cost of $24,160; and to pay for more than $18,257 in goods and services at various retail stores.
To obtain the PCard holders’ credit card information, Wanda Greene required Buncombe County employees to provide her with a photocopy of the front and back of their PCards, which she then used to make the improper purchases. According to the indictment, Michael Greene also possessed such a photocopy until it was recovered in his County office.
The indictment alleges that, in addition to participating in the misuse of Wanda Greene’s PCards and those of her subordinate employees, Michael Greene used his County PCard to pay for food, wireless services, and goods totaling more $9,100. Michael Greene’s PCard privileges were revoked in January 2009 following an audit.
Wanda Greene and Michael Greene have been ordered to appear on a summons. The conspiracy charge carries a maximum prison terms of five years and a $250,000 fine, the federal program fraud charges carry a maximum prison term of 10 years per count and a $250,000 fine, and the wire fraud charges carry a maximum penalty of 20 years in prison per count and a $250,000 fine.
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 prosecuting the case.
Federal Jury Convicts Minister of Tax CrimesRead the Press Release
CHARLOTTE, N.C. – A federal jury has convicted a former Charlotte-area minister, William Todd Coontz, 51, of Fort Lauderdale, Florida, of failure to pay taxes and aiding and assisting in the filing of false tax returns, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI).
According to filed court documents and evidence presented at trial, from 2010 to 2014, Coontz was the minister of Rock Wealth International Ministries (Rockwealth Ministries), and the author of numerous books on faith and finances, such as “Please Don’t Repo My Car,” and “Breaking the Spirit of Debt.” Coontz also operated two for-profit companies, Legacy Media and Coontz Investments and Insurance.
Beginning in at least tax year 2000 and continuing through at least tax year 2014, Coontz filed delinquent U.S. Federal Income Tax Returns, Forms 1040, with the IRS and consistently failed to make timely payments on the taxes he owed, despite receiving multiple letters and late notices from the IRS. For example, for tax years 2011 through 2013, Coontz filed late tax returns and did not pay the total assessed taxes, resulting in total tax liabilities of more than $326,394 for those years.
Trial evidence established that Coontz also filed false federal income tax returns for tax years 2010 through 2013, which underreported his income. Specifically, Coontz engaged in a check cashing scheme, involving payments for travel reimbursements for speaking engagements and the sale of books and other products. For example, during 2010 through 2013, Coontz regularly traveled to speak at various ministries, for which he was paid speaking fees and was reimbursed for his travel expenses. Coontz hid income from the IRS by claiming the travel as a business expense while simultaneously receiving travel reimbursement that he kept as personal income. In order to conceal the payments, Coontz directed, or caused his travel assistant to direct, the ministries to make reimbursement checks for travel expenses directly payable to “Todd Coontz,” and to send the checks to his personal address, rather than to Rockwealth Ministries – the entity that paid for his travel. Coontz then cashed these checks rather than deposit them into a bank account.
Also, in order to boost his income, Coontz told his travel assistant to bill the churches for the cost of a full fare first-class ticket, even though his actual expenses for those tickets was substantially less than the amount billed. Fraudulent travel invoices were created and submitted to the ministries that falsely purported that Coontz had actually paid the full fare ticket price. As a result, the travel reimbursement checks sent directly to Coontz were for amounts in excess of the actual travel expenses incurred by Rockwealth Ministry.
According to trial evidence and other court records, during 2010 through 2013, Coontz also directed that other checks, such as payments for speeches and for the purchase of books and other products, be made payable to “Todd Coontz” and sent to his personal address. In total, Coontz concealed and cashed at least 102 checks for travel reimbursements, speeches, and books and other products, totaling at least $252,037.99 for the relevant time period, causing his total income for the relevant tax years to be underreported on his federal income tax returns. During 2014, Coontz continued to conceal and cash checks received as payments, cashing at least 32 checks totaling $105,454.90 which were not reflected in his accounting records.
Coontz also underreported his income on his tax returns for tax years 2010 through 2013, by failing to include as income payments made by his corporations and ministry for his personal expenses, including payments for the benefit of his family members, and for meals and entertainment. Contrary to the advice of his Certified Public Accountant about comingling personal and business funds, Coontz spent substantial amounts of business funds to pay for personal expenditures, which were falsely classified as business expenses. These purported business expenses included payments totaling more than $227,700 for clothing purchases, and over $140,000 to pay for meals and entertainment expenses at various restaurants, including more than 400 distinct charges at movie theaters.
In addition, instead of holding assets in his own name, Coontz utilized residences and luxury vehicles titled in the names of companies he owned and controlled. For example, luxury vehicles purchased by Legacy Media, Coontz Investments and Insurance, and Rockwealth Ministries during 2011 through 2013 included three BMWs, two Ferraris, a Maserati, and a Land Rover, and a Regal 2500 boat, among others. Coontz treated payments for those items as business expenses, even though some of them were used by family members and there were no records kept about their supposed business use. Additionally, in 2012, Rockwealth Ministries purchased a $1.5 million condominium as a parsonage for Coontz.
Coontz has been released on bond. The failure to pay tax charge carries a maximum prison term of one year and a $100,000 fine, per count. The aiding and assisting in the filing of false tax returns charge carries a maximum prison term of three years and a $250,000 fine, per count.
The investigation was led by IRS-CI. Assistant U.S. Attorneys Jenny G. Sugar and Dallas Kaplan, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
Two Methamphetamine Traffickers Handed Down Lengthy Prison TermsRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Richard L. Voorhees handed down lengthy prison terms to two drug traffickers today involved in separate methamphetamine trafficking conspiracies, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Chuck Allen Church, Jr., 41, of Morganton, was sentenced to 240 months, followed by five years of supervised release. In September 2017, Church pleaded guilty to methamphetamine trafficking conspiracy, possession with intent to distribute methamphetamine, and possession of a firearm by a felon. According to court records, from 2016 to 2017, Church was part a methamphetamine trafficking ring operating in and around Caldwell County. Over the course of the investigation into Church, law enforcement seized methamphetamine, digital scales, drug paraphernalia, a sawed-off shotgun, and $15,158 in U.S. currency. Church has prior felony convictions, including Abduction of Child (2010) and Possession of Firearm by Felon (2012 and 2014), and he is prohibited from carrying a firearm.
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In a separate case, Jeffrey Brent Church, 54, of Connelly Springs, N.C., was sentenced to 169 months in prison. According to court records, from 2014 to 2017, Church was responsible for trafficking methamphetamine in Caldwell and Catawba Counties and elsewhere. Over the course of the investigation, law enforcement recovered narcotics, $9,569 in U.S. currency, stolen handguns and other firearms, including two AR-15 rifles. In December 2017, Church pleaded guilty to a methamphetamine trafficking conspiracy. In addition to the prison term imposed, Judge Voorhees also ordered Church to serve five years under court supervision upon completion of his prison terms.
The two defendants were charged as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation. According to court documents, since 2015, more than 200 individuals have been prosecuted as a result of this OCDETF investigation. Over the course of the investigation, law enforcement have seized more than 20 kilograms of crystal methamphetamine, $500,000 in U.S. currency and other assets, and dozens of firearms.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement, U.S. Attorney Murray thanked Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas; Director Robert Schurmeier of the North Carolina State Bureau of Investigation (SBI); Colonel Glenn McNeill, Commander of the North Carolina State Highway Patrol; Sheriff Chris Bowman of the Alexander County Sheriff’s Office; Sheriff Jim Hartley of the Ashe County Sheriff’s Office; Sheriff Alan C. Jones of the Caldwell County Sheriff’s Office; Chief Thurman Whisnant of the Hickory Police Department; Chief Scott Brown of the Lenoir Police Department; and Chief Damon D. Williams of the Mooresville Police Department.
Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
United Blood Nation Gang Associate Sentenced to 13 Years for Racketeering Conspiracy and Murder in Aid of RacketeeringRead the Press Release
CHARLOTE, N.C. – Briana Shakeyah Johnson, 22, of Concord, N.C., was sentenced today by U.S. District Judge Max O. Cogburn, Jr. to 156 months in prison and 5 years of supervised release on charges of conspiracy to participate in racketeering activity (RICO) and murder in aid of racketeering, for her involvement in the murders of Douglas and Deborah London, announced U.S. Attorney R. Andrew Murray of the Western District of North Carolina.
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.
According to filed court documents and court proceedings, Johnson, a/k/a “Breezy B” a/k/a “Breezy V,” was an associate of the Charlotte-area Valentine Blood set of the United Blood Nation gang (UBN or Bloods). Court documents show that Johnson met UBN gang member Malcolm Jarrell Hartley in April 2014 and became his girlfriend.
According to court documents, on May 25, 2014, three UBN members, Jamell Lamon Cureton, Nana Yaw Adoma and David Lee 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. As an associate of the Bloods, Johnson was present at gang meetings during which the Londons’ murder was planned.
The gang’s leadership authorized Hartley to proceed with the murder, and on October 23, 2014, Johnson drove Hartley to the Londons’ home in Lake Wylie, S.C. Johnson waited in the car while Hartley shot both victims, and then drove Hartley back to Charlotte, first stopping at Rahkeem McDonald’s house to dispose of the gun. Johnson and Hartley then returned to Hartley’s apartment where they met with other gang members. According to filed documents, while at the apartment, Hartley described the victims’ murders and the group celebrated. After the murders, Hartley was “ranked up” or “promoted” to a 2-Star General for carrying out the leadership’s orders.
To date, eight other Bloods gang members have been sentenced as a result of this investigation. Jamell Lamon Cureton, and Malcolm Jarrel Hartley were sentenced to life in prison for the double-murder of Douglas and Deborah London. Cureton received a second life sentence for the 2013 murder of Kwamne Clyburn. Rahkeem Lee McDonald was also sentenced to life in prison for his role in the Londons’ murder. David Lee Fudge was ordered to serve 26 years in prison. Ibn Rashaan Kornegay was sentenced to 23 years in prison. Nehemijel Maurice Houston was sentenced to 20 years in prison. Daquan Lamar Everrett was sentenced to 13 years in prison, and Centrilla Shardon Leach was ordered to serve 13 years in prison.
Three more defendants previously convicted at trial currently await sentencing: Randall Hankins, II, Nana Yaw Adoma, and Akheem Tahja McDonald were convicted of racketeering conspiracy charges in October 2017. Hankins was also convicted of two counts of murder in aid of racketeering and two counts of 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 the Londons. Adoma and Akheem McDonald were each convicted of one count of murder in aid of racketeering and one count of 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. Adoma was also convicted of one count of assault with a dangerous weapon in aid of racketeering and one count of 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.
The investigation was led by the FBI, with the invaluable assistance of CMPD and the York County Sheriff’s Office. Assistant U.S. Attorney Don Gast is prosecuting the case.
South Carolina Man Indicted for $1 Million Investment Scheme and Tax EvasionRead the Press Release
CHARLOTTE, N.C. – A criminal bill of indictment was unsealed today in federal court, charging Nickolas M. Godfrey, 39, of Fort Mill, South Carolina, with securities fraud, wire fraud, and transactional money laundering in connection with a $1 million investment fraud scheme and a related tax evasion scheme, announced R. 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, and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI).
According to allegations contained in the indictment, from 2012 to at least 2015, Godfrey obtained more than $1 million by engaging in a Ponzi scheme through his company, Coast to Coast Business Funding LLC (Coast to Coast), which purportedly provided short-term cash advances to businesses. The indictment alleges that Godfrey induced at least 20 victims to invest with Coast to Coast, by falsely representing that the company was successfully generating substantial revenue. Godfrey maintained a website for Coast to Coast, which also falsely represented that the company was accredited by the Better Business Bureau. To further solicit investments from victims, Godfrey made numerous false representations to victims, including promising returns of as much as 73.5%.
Contrary to promises made to victim investors, Godfrey used victims’ money to pay for personal expenditures and for the expenses of his other businesses, and to make Ponzi-type payments to earlier victims.
When victims complained about missed payments and demanded more information, Godfrey tried to appease them by creating fake documents, including fake financial statements for Coast to Coast, and a fake list of clients to which Coast to Coast had purportedly provided financing.
In addition to the investment fraud scheme, the indictment alleges that Godfrey engaged in in a tax evasion scheme by evading the payment of tax liabilities assessed by the IRS related to his ownership and operation of two hair salons, Bliss Day Spa & Salon (Bliss) in Pineville, N.C., and Alter Ego Salon & Day Spa (Alter Ego) in Charlotte. The indictment alleges that Godfrey committed tax evasion by, among other things, failing to pay federal employment taxes that he had withheld from the paychecks of employees at Bliss and Alter Ego, and taking multiple steps to thwart the IRS’ collection efforts. For example, the indictment alleges that Godfrey commingled the amounts withheld from his employees’ paychecks with other business and personal funds, including money obtained from victim investors, and used those funds to pay for personal expenses. Godfrey also lied to IRS employees attempting to collect the unpaid taxes, according to the allegations in the indictment. In addition, as alleged in the indictment, Godfrey filed individual U.S. Federal Income Tax Returns for the years 2009 through 2012 that failed to report accurately the net income he received from his businesses.
Godfrey had his initial appearance today before U.S. Magistrate Judge David Keesler. The securities fraud charge carries a penalty of up to 20 years in prison and a $5 million fine. The wire fraud charge carries a penalty of up to 20 years in prison and a $250,000 fine. The transactional money laundering charge carries a penalty of up to 10 years in prison and a fine of up to $250,000 or not more than twice the amount of the criminally derived property involved in the transaction. The tax evasion charge carries a penalty of five years in prison and a $250,000 fine.
All charges contained in the indictment are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
The investigation was led by the FBI and IRS-CI. Assistant United States Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Prison Time and Stiff Penalties Await Tax Fraudsters, Prosecutors WarnRead the Press Release
CHARLOTTE, NC - With the deadline for filing income tax returns rapidly approaching, R. Andrew Murray, U.S. Attorney for the Western District of North Carolina, and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), jointly announce recent tax fraud prosecutions and sentencings, and deliver a powerful warning to those who are thinking about breaking the law by committing tax crimes.
“As April 15th nears, tax cheats are put on notice: our office works diligently to investigate and prosecute those who try to evade their federal tax obligations,” said U.S. Attorney Murray. “Taxes help pay for important services our communities rely on. Tax cheats steal from the government and increase the burden on honest taxpayers who file their taxes on time and pay the share they owe. Our experienced tax prosecutors and IRS criminal investigators work hand-in-hand to uncover tax fraud and hold tax criminals accountable for their actions.”
“As the 2018 tax filing season comes to an end, special agents of the IRS-Criminal Investigation will continue to work diligently to pursue those individuals and corporations who make deliberate decisions to not comply with the tax laws. America’s tax system relies heavily on voluntary self-assessments of what tax is owed and when individuals or corporations falsify those self-assessments, the citizens of Western North Carolina, can rest assured our agents in the Charlotte Field Office, along with the U.S. Attorney’s Office, will prosecute them. Prosecution of these cases supports the overall IRS compliance goals and enhances voluntary compliance,” said Acting Special Agent in Charge Matthew D. Line.
Tax Preparer Indicted for Tax Fraud
Aminta A. Smith, 31, of Charlotte, made her initial appearance today on federal charges of aiding and assisting in the preparation of false tax returns and filing a false tax return. The indictment alleges that, between 2012 and 2015, Smith prepared and submitted to the IRS more than 1,300 tax returns, many of which included false information, such as false income and false education expenses, which qualified filing individuals for inflated tax refunds. The indictment further alleges that the Charlotte-area tax return preparer kept a portion of the tax refund as her fee. For tax years 2011 to 2015, Smith also filed U.S. Individual Income Tax Returns that did not include much of the income she received for preparing tax returns, which resulted in Smith receiving large tax refunds. Smith faces a maximum penalty of three years in prison for each charge of aiding and abetting in the preparation of false tax returns and three years in prison for filing a false tax return. (3:18-cr-107).
Other Tax Prosecutions
In the last year, the U.S. Attorney’s Office, with the assistance of IRS-CI, has investigated and prosecuted numerous individuals for criminal tax violations. Tax enforcement prosecutions include:
Todd Barry Greenburg (5:17-cr-53). On March 6, 2018, Greenburg, 46, a resident of Mooresville, N.C. and co-owner of a Charlotte-area car dealership, pleaded guilty to one count of tax evasion. As part of his guilty plea, Greenburg admitted that, for tax years 2010 through 2015, he attempted to evade a large part of the income tax he owed by: concealing and attempting to conceal from the IRS the nature and extent of his assets and their location; placing funds and properties in the names of others; and making false statements to IRS agents. He faces a maximum sentence of five years in prison and a $250,000 fine. Greenburg’s sentencing date has not been set.
Peter Gjuraj (5:17-cr-31). On September 5, 2017, Gjuraj, 50, of Mooresville, was sentenced to eight months in prison. Gjuraj operated the Blue Parrot, a restaurant in Lake Norman, and concealed significant personal earnings from the IRS. For tax years 2012 through 2014, the Blue Parrot earned additional gross receipts totaling approximately $2,793,873 that Gjuraj failed to report on his individual income tax returns filed with the IRS. As a result of the unreported gross receipts, Gjuraj had additional taxable income substantially in excess of that reported on his tax years 2012 through 2014. The additional federal tax due on this unreported income was a total of $319,974.92.
Matthew Moretz (5:17-cr-3). On August 8, 2017, Moretz, 32, of Taylorsville, N.C., and owner of a recycling business, was sentenced to six months in prison. Court records show that Moretz concealed significant personal earnings from the business from the IRS. As a result of unreported income of $529,622.44, Moretz had additional tax due and owing of approximately $115,409 from 2010 to 2013.
Priscilla Lydia Turner (1:16-cr-133). On August 17, 2017, Turner, 36, of Greenville, South Carolina, was sentenced to 24 months in prison and was ordered to pay $204,773 in restitution for her role in a stolen identity refund fraud scheme. Turner misused her access to a computer system to obtain personal identifying information (PII) of inmates detained at the Greenville County Detention Center. Turner passed the stolen PII of inmates to her co-conspirators, who used that information to file fraudulent tax returns and to obtain fraudulent tax refunds. Turner’s co-conspirators were previously sentenced in connection to the tax fraud scheme. Carmichael Hill was sentenced to 75 months in prison; Reginald Knowles was sentenced to 70 months in prison; and Senita Dill was sentenced to 324 months in prison.
Quandella Walker (3:17-cr-343). On December 14, 2017, Walker, 29, of Charlotte, was indicted for aiding and assisting in the filing of false tax returns for others as well as filing false tax returns in her own name. Through her tax preparation business, Quandella Tax Services, Walker prepared tax returns for clients that contained false income information, to enable her clients to fraudulently qualify for inflated tax refunds. Walker is also charged filing false tax returns for her own name.
Federal penalties for each count of conviction of tax crimes range from a maximum of one year in prison and a $100,000 fine for failure to file a tax return, false withholding exemptions, and delivering or disclosing false tax documents, to a maximum of 10 years in prison and a $250,000 fine for conspiracy to defraud with respect to false refund claims. Other penalties include a mandatory term of two years in prison and a $250,000 fine for aggravated identity theft charges, three years in prison and a $250,000 fine for obstructing or impeding an investigation and filing or preparing a false tax return, and a maximum of five years in prison and a $250,000 fine for tax evasion, failure to pay taxes, conspiracy to commit a tax offense or conspiracy to defraud.
The U.S. Attorney’s Office and the IRS remind tax payers to exercise caution during tax season to protect themselves against a wide range of tax schemes ranging from identity theft to return preparer fraud. Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice to shutdown scams and to prosecute the criminals behind them. The IRS has issued its annual “Dirty Dozen” which lists common tax scams that taxpayers may encounter, particularly during filing season. Taxpayers are urged look out for, and to avoid, the following common schemes:
- Phishing
- Phone Scams
- Identity Theft
- Return Preparer Fraud
- Fake Charities
- Inflated Refund Claims
- Excessive Claims for Business Credits
- Falsely Padding Deductions on Returns
- Falsifying Income To Claim Credits
- Abusive Tax Shelters
- Frivolous Tax Arguments
- Abusive Tax Shelters
- Offshore Tax Avoidance
Education is the best way to avoid these common schemes. To learn more about the Dirty Dozen scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at www.irs.gov. Suspected tax fraud can be reported to the IRS using Form 3949-A found on the IRS.gov website.
Man Who Concealed Service in Military Unit Involved in Srebrenica Massacre Sentenced for Immigration FraudRead the Press Release
Charlotte, N.C. – A Bosnian Serb residing in North Carolina was sentenced to 18 months in prison today for his criminal conviction of obtaining a Permanent Resident Card (I-551), commonly referred to as a “green card,” by making materially false claims and statements on his initial application for refugee status, which served as the basis for obtaining Lawful Permanent Resident status.
Attorney General Jeff Sessions, 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 Deputy Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE) made the announcement.
Milan Trisic, 55, who was residing in Charlotte, North Carolina, was sentenced by Judge Max O. Cogburn Jr. of the Western District of North Carolina. Trisic previously pleaded guilty on Dec.18, 2017, to possession of unlawfully obtained documents. Pursuant to an Order issued by Judge Coburn, upon completion of his term of imprisonment, Trisic will be transferred to ICE custody for removal to Bosnia and Herzegovina.
“Those who wish to live in the United States ought to respect our laws, support our national security, and pursue residency legally and honestly. Anything less is inexcusable,” said Attorney General Sessions. “The Department of Justice will not hesitate to take action against criminals who seek to come here on the basis of fraud and take advantage of our generous immigration system. I want to thank our Homeland Security Investigations (HSI) special agents and DOJ attorneys for all of their hard work pursuing justice in this case.”
“Using lies and deceit, Trisic exploited our legal immigration system to enter our country and later to become a permanent resident,” said U.S. Attorney Murray. “The sentence imposed by the Court is just punishment for Trisic’s blatant disregard for our nation’s immigration laws. My office is committed to protecting the integrity of our legal immigration process and prosecuting those who commit immigration fraud.”
“The men and women of ICE will continue to pursue those who violate the integrity of our immigration system to hide from the human rights violations they have committed,” said ICE Deputy Director Homan. “ICE Homeland Security Investigations in Charlotte, supported by ICE’s Human Rights Violators and War Crimes Center, worked for many years to pursue this case and uncover the facts about the human rights violations this individual committed. We thank our many partners at the Department of Justice for their tireless work in prosecuting this case. With this case and many others like it, the United States has demonstrated that we will not serve as a safe haven for those who commit egregious acts that violate basic human rights.”
According to the admissions made in connection with his plea, Trisic, an ethnic Serb with Bosnian citizenship, is a lawful permanent resident of the United States living in North Carolina. On Nov. 3, 2016, Trisic possessed a green card that was unlawfully obtained. In response to questions on his legal permanent resident application, Trisic knowingly concealed his military service in the Bratunac Brigade, a unit in the Army of the Serb Republic; concealed his criminal activity in Bosnia and Herzegovina; and lied about his whereabouts during the war in Bosnia and Herzegovina in the early and mid-1990s.
As part of his plea of guilty, Trisic admitted that he served in the Army of the Serb Republic as a member of the Bratunac Brigade during various tours of duty between April 1992 and January 1996, at a time when Bosnia and Herzegovina was in the midst of a civil war. Due to its proximity to Serbia, forces both aligned with and from Serbia began a violent ethnic expulsion campaign in 1992 against the non-Serbian population in and around Bratunac. Trisic admitted that he engaged in various unlawful activities while serving with the Bratunac Brigade, such as the unlawful beating, detention and transportation of Muslim prisoners. Additionally, Trisic admitted that the Bratunac Brigade, operating primarily in eastern Bosnia and Herzegovina, was one of the military units responsible for the July 1995 Srebrenica massacre that resulted in the deaths of between 7,000 and 8,000 Bosnian Muslim men.
Trisic also admitted that he knowingly lied about his whereabouts during the war in Bosnia and Herzegovina. In order to obtain refugee status, Trisic falsely claimed that he resided in Serbia during the war, when in fact he actually resided in Bratunac, Bosnia and Herzegovina, where he served as part of the Bratunac Brigade. Trisic later used his illegally obtained status as a refugee to unlawfully obtain permanent resident status in the United States.
This case is the result of an investigation conducted by ICE’s HSI and supported by the Human Rights Violators and War Crimes Center. Trial Attorneys Frank G. Rangoussis and Ann Marie E. Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Kenneth Smith of the Western District of North Carolina are prosecuting the case.
Federal Judge Sentences Huntersville, N.C. Doctor to More Than Eight Years for Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr., sentenced David Michael Shope, 43, of Huntersville, N.C., to 105 months in prison for possession of child pornography, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Shope, who is an Oncologist, was also ordered to serve a 15 years under court supervision 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 (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Murray in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, in February 2015 and in September 2015, Shope used peer-to-peer software to transport to an undercover CMPD detective multiple videos that depicted the sexual abuse of children. According to court records, on September 30, 2015, law enforcement conducted a search of Shope’s residence in Huntersville, seizing multiple electronic devices and an external hard drive. A forensic examination of the seized items revealed that Shope possessed multiple videos containing child pornography, some of which depicted sadomasochistic conduct. Several videos also involved children under 12.
According to court records, law enforcement also found, on one of Shopes’ laptops, chats from a public chat room. The various chats involved Shope posing as a female with a younger daughter who was sexually interested in other females with younger daughters. Some of the chats included Shope requesting photographs of the other females and their daughters.
Shope pleaded guilty to possession of child pornography in July 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.
The FBI and CMPD led the investigation. Assistant U.S. Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s 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.
Concord, N.C. Man Sentenced to 11 Years on Drug Conspiracy ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney R. Andrew Murray announced today that Montorio Darell Allison, 38, of Concord, N.C. was sentenced to 132 months in prison on drug trafficking charges. U.S. District Judge Max O. Cogburn, Jr. also ordered Allison to serve 10 years under court supervision after he is released from prison.
U.S. Attorney Murray is joined in making today’s announcement by Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Gary J. Gacek with the Concord Police Department.
According to filed court documents and today’s sentencing hearing, Allison was a member of a drug trafficking organization (DTO) responsible for trafficking large quantities of cocaine from supply sources in Mexico and Texas, and utilized drug couriers to transport the drugs to Allison and other drug traffickers throughout North Carolina and elsewhere. Court records also show that between March and September 2015, a courier for the DTO delivered five kilograms of cocaine to Hillsborough, N.C.; 15 kilograms of cocaine to Fayetteville, N.C.; and one kilogram of cocaine to Concord, N.C. After distributing the cocaine, local DTO members returned large sums of bulk currency generated from drug sales.
According to court records, over the course of the investigation into Allison, law enforcement seized cocaine, heroin, other narcotics, 13 empty kilogram wrappers, other drug paraphernalia, and cash. Allison pleaded guilty in June 2017 to one count of conspiracy to distribute and to possess with intent to distribute controlled substances.
Allison is in federal custody and will be transferred to the custody of Federal Bureau of Prisons to begin serving his sentence. All federal sentences are served without the possibility of parole.
The DEA led the investigation. Assistant U.S. Attorney Craig Randall of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Los Angeles Man Indicted for Money Laundering of $1.9 Million Stolen from Appalachian State UniversityRead the Press Release
CHARLOTTE, N.C. – Ho Shin Lee, 31, of Los Angeles, California, was indicted by a federal grand jury in Charlotte for laundering more than $1.9 million stolen from Appalachian State University, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. The 14-count indictment was unsealed today, following Lee’s arrest in California.
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 allegations contained in the indictment, on or about November 18, 2016, Lee applied to the Secretary of State of California to register Royce Hub Trading, Inc. as a corporation in California, claiming that the corporation was in the business “general merchandise.” Lee represented himself to be the Chief Executive Officer, Secretary, and Chief Financial Officer of Royce Hub Trading. The indictment alleges that on or about November 23, 2016, Lee opened a bank account with a financial institution in Los Angeles in the name of Royce Hub Trading, Inc. Lee claimed to be president of Royce Hub Trading and was the sole account holder.
Court documents indicate that in 2016, Appalachian State University (“Appalachian State”) awarded a contract to Rodgers Builders to build a new health sciences building at the university. On or about December 2, 2016, an employee at Appalachian State received an email from an unidentified individual purporting to be D.M., an employee of Rodgers Builders. The e-mail was sent from [email protected]. The legitimate e-mail address for Rodgers Builders was “rodgersbuilders.com.” The fraudulent e-mail contained a direct deposit form and instructions to change Rodgers Builders’ previously submitted banking information to Lee’s newly opened bank account.
The indictment alleges that the Appalachian State employee changed the payment information as directed by the fraudulent e-mail, and on or about December 8, 2016, a payment of approximately $1,959,925.02 intended for Rodgers Builders by Appalachian State was directed to the bank account controlled by Lee.
According to the indictment, on or about December 12, 2016, Lee received the fraud proceeds, and quickly transferred the funds through a series of financial transactions out of his bank account, knowing that the transactions were designed to conceal the nature, location, source, ownership, and control of the fraud proceeds.
Lee is charged with fourteen counts of money laundering. The maximum penalty for the each charge is twenty years in prison and a $ 500,000 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.
The FBI investigated the case. Assistant U.S. Attorney Kelli Ferry is in charge of the prosecution.
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On January 24, 2018, U.S. Attorney Murray announced that $1,542,442.33 would be distributed to Appalachian State, following successful civil forfeiture proceedings against money seized from bank accounts controlled by the alleged fraudsters who targeted the university. The full press release can be found at:
/usao-wdnc/pr/appalachian-state-university-receive-15-million-distribution-resulting-us-attorneys
U.S. Army Reserve Soldier Arrested and Charged with Sex Trafficking and Related OffensesRead the Press Release
CHARLOTTE, N.C. – An indictment was unsealed today in federal court following the arrest of Xaver Boston, 28, of Charlotte, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney R. Andrew Murray of the Western District of North Carolina, and Special Agent in Charge John Strong of the FBI Charlotte, North Carolina, Field Division. The indictment charges Boston with six counts of sex trafficking, one count of inducing a person to travel in interstate commerce for purposes of prostitution, and two counts of using an interstate facility to promote a prostitution enterprise.
According to the indictment, between 2012 and Spring 2016, and again between Spring 2017 and September 2017, the defendant operated a prostitution enterprise and sex trafficked young women, including one minor girl. The defendant advertised the women on Backpage.com and collected the prostitution proceeds for his own profit. He provided the women with drugs, including heroin, to maintain control of their actions, and he used violence as punishment when he suspected they were withholding proceeds from him, lying to him, or not following his directions.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty. Each sex trafficking count carries a minimum sentence of 15 years in prison and a maximum sentence of life, as well as mandatory restitution and a $250,000 fine.
The case is being investigated by the FBI in Charlotte and the Charlotte-Mecklenburg Police Department. The case is being prosecuted by Assistant U.S. Attorney Kimlani M. Ford of the Western District of North Carolina and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Two Brothers Charged with Murder Conspiracy, Attempted Murder, and Firearm Offenses for Shooting of U.S. Postal CarrierRead the Press Release
CHARLOTTE, N.C. – A grand jury sitting in Charlotte returned a federal indictment charging two brothers for the shooting of a United States Postal Carrier, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Rashawn Donnell Williams, 29, and Dion Lamar Williams, 27, both of Charlotte, were charged with conspiracy to murder a federal employee, attempted murder of a federal employee, and discharging a firearm during, in relation to and in furtherance of a crime of violence. Rashawn Williams was also charged with possession of a firearm by a felon.
David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) joins U.S. Attorney Murray in making today’s announcement.
“As alleged in the indictment, the two men knowingly and intentionally attempted to kill a U.S. postal carrier while he was performing his official duties. I want to thank our law enforcement partners for their thorough investigation of this case, which has led to today’s federal charges,” said U.S. Attorney Murray.
Inspector in Charge McGinnis stated, “Protecting the employees of the United States Postal Service is a top priority for the U.S. Postal Inspection Service. When someone attempts to take the life of one of our employees, we stop at nothing to identify those responsible. We extend our appreciation to all our local, state and federal partners that assisted in the investigation.”
According to allegations contained in the indictment, on August 31, 2017, Rashawn Williams and Dion Williams conspired to kill a U.S. Postal Carrier. The indictment alleges that, as part of the conspiracy, Dion Williams picked up Rashawn Williams at a location on Executive Street in Charlotte. The two men traveled to the Days Inn located at 4924 Sunset Road in Charlotte, where Rashawn Williams obtained a firearm. The indictment also alleges that the two men then traveled to Archer Avenue in Charlotte, to locate the victim. The indictment further alleges that Rashawn Williams and Dion Williams attempted to kill the victim while he was delivering mail on his mail route. According to the indictment, Rashawn Williams has a prior criminal conviction and is prohibited from possessing a firearm.
The two men are currently in custody and will appear in court on the federal charges. The maximum penalty for the charge of conspiracy to murder a federal employee is life in prison. The charge of attempted murder of a federal employee carries a maximum prison term of 20 years and a $250,000 fine. The discharging of a firearm charge carries a mandatory minimum term of 10 years consecutive to any other count. The felon in possession of a firearm charge carries a maximum prison term of 10 years and a $250,000 fine.
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.
The investigation was led by USPIS. In making today’s announcement, U.S. Attorney
Murray and Inspector McGinnis thank the FBI, ATF, U.S. Probation Office, the CharlotteMecklenburg Police Department and the Mecklenburg County Sheriff’s Office for their invaluable assistance with this case.
Assistant U.S. Attorney Jennifer Dillon, of the U.S. Attorney’s office in Charlotte, is prosecuting the case.
South Carolina Man Sentenced to Two Years for Synthetic ID Bank FraudRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced a South Carolina man late yesterday to 24 months in prison, followed by two years of supervised release, in connection with a “synthetic identity” bank fraud scheme, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Conrad also ordered Charles Whitlock, Jr., 51, of Rock Hill, S.C. to pay $310,268.51 in restitution. Whitlock pleaded guilty to bank fraud in October, 2017.
David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and court hearings, Whitlock executed a synthetic identity fraud scheme from December 2013 to April 2017, through which he fraudulently obtained more than $251,000 from a financial institution by obtaining credit cards using synthetic identities. A synthetic identity is a fictitious identity created using a combination of real and fabricated information about people, or sometimes entirely fictitious information about people, including names, social security numbers (SSN), dates of birth (DOB).
Whitlock also used social media to offer so-called “credit repair services,” claiming he could help customers acquire new lines of credit, car loans and better FICO scores, among other things. Whitlock omitted to disclose that he was engaging in fraudulent activity involving synthetic identities.
In July 2017, the U.S. Government Accountability Office (USGAO) issued a summary report of a forum convened by the Comptroller General of the United States on the topic of synthetic identity fraud (SIF). A panel of experts concluded that SIF is a growing problem that poses a threat to “the financial system, government programs and national security.” The USGAO’s full report is available at https://www.gao.gov/assets/690/686134.pdf
The investigation was led by USPIS and the FBI. Assistant U.S. Attorneys Thomas O’Malley and Ben Bain-Creed, of the U.S. Attorney’s office in Charlotte, prosecuted the case.
South Carolina Man Sentenced to Two Years for Synthetic ID Bank FraudRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced a South Carolina man late yesterday to 24 months in prison, followed by two years of supervised release, in connection with a “synthetic identity” bank fraud scheme, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Conrad also ordered Charles Whitlock, Jr., 51, of Rock Hill, S.C. to pay $310,268.51 in restitution. Whitlock pleaded guilty to bank fraud in October, 2017.
David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and court hearings, Whitlock executed a synthetic identity fraud scheme from December 2013 to April 2017, through which he fraudulently obtained more than $251,000 from a financial institution by obtaining credit cards using synthetic identities. A synthetic identity is a fictitious identity created using a combination of real and fabricated information about people, or sometimes entirely fictitious information about people, including names, social security numbers (SSN), dates of birth (DOB).
Whitlock also used social media to offer so-called “credit repair services,” claiming he could help customers acquire new lines of credit, car loans and better FICO scores, among other things. Whitlock omitted to disclose that he was engaging in fraudulent activity involving synthetic identities.
In July 2017, the U.S. Government Accountability Office (USGAO) issued a summary report of a forum convened by the Comptroller General of the United States on the topic of synthetic identity fraud (SIF). A panel of experts concluded that SIF is a growing problem that poses a threat to “the financial system, government programs and national security.” The USGAO’s full report is available at https://www.gao.gov/assets/690/686134.pdf
The investigation was led by USPIS and the FBI. Assistant U.S. Attorneys Thomas O’Malley and Ben Bain-Creed, of the U.S. Attorney’s office in Charlotte, prosecuted the case.
Repeat Offender Sentenced to 35 Years for Child PornographyRead the Press Release
CHARLOTTE, N.C. – Johnny Allen Hass, Jr., 49, of Charlotte, was sentenced today to 35 years in prison for transportation of child pornography charges, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. also ordered Hass to serve a lifetime 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 (FBI), Charlotte Division joins U.S. Attorney Murray in making today’s announcement.
According to court documents and information introduced at the sentencing hearing, on June 28, 2016, Hass used a peer-2-peer network to transport multiple files containing child pornography via the internet to an undercover FBI agent. During a subsequent search of Hass’s residence in Charlotte, law enforcement seized a thumb drive. Law enforcement also seized a cell phone from Hass. Forensic analyses of those devices revealed that Hass possessed 78 videos of child pornography, some of which depicted the sadistic and masochistic sexual abuse of prepubescent minors as well as other violent conduct.
Hass was convicted in Florida in 1987 for Attempted Lewd Assault Upon a Child, and for Aggravated Assault with a Deadly Weapon. In 1996, Hass was convicted federally for transportation of child pornography and again in 1998 for receipt of child pornography. He was also convicted in 2015 in Mecklenburg County for a sex offender registry violation. According to the terms of his supervised release for his prior federal convictions, Hass was prohibited from owning a computer, an internet hub, or any device that could access the internet.
Hass pleaded guilty to transportation of child pornography on August 7, 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.
The FBI led the investigation. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Previously Convicted Drug Trafficker Is Sentenced to 10 Years on Drug Conspiracy ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney R. Andrew Murray announced today that Christopher Michael Partlow, 46, of Bessemer City, N.C. was sentenced to 120 months in prison and five years of supervised release on drug conspiracy charges. U.S. District Judge Robert J. Conrad, Jr. presided over the sentencing.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas; Chief Tom Ellis of the Bessemer City Police Department; and Chief Robert C. Helton of the Gastonia Police Department join U.S. Attorney Murray in making today’s announcement.
According to court documents and today’s sentencing hearing, from 2015 to 2017, Partlow was involved in a drug conspiracy operating in and around Gaston County, responsible for trafficking large amounts of narcotics. On January 17, 2017, law enforcement executed a search warrant at Partlow’s residence, seizing heroin, crack cocaine, and two firearms. Partlow has a prior federal drug trafficking conviction and is prohibited from possessing a firearm.
Partlow pleaded guilty in June 2017 to drug trafficking conspiracy. He is currently in federal custody and will be transferred to custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
This case stems from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Murray thanks the Federal Bureau of Investigation, Charlotte Division; ICE’s Homeland Security Investigations in Charlotte; the Bessemer City Police Department; and the Gastonia Police Department for their investigation of the case.
Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
Leader and Two Associates of Drug Trafficking Ring Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – The leader of a drug trafficking ring and two of his associates were sentenced to prison today by U.S. District Judge Robert J. Conrad, Jr., announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Anthony Jarbar Pettus, 35, of Gastonia, was sentenced to 168 months in prison and five years of supervised release; James Michael Hardin, 54, of Gastonia, was sentenced to 120 months in prison and five years of supervised release; and Albert Hankerson, 65, of Gastonia, N.C. was sentenced to 72 months in prison and three years of supervised release.
According to court documents and today’s sentencing hearings, from 2007 to 2017, the defendants operated as drug conspiracy responsible for trafficking between 840 and 2,800 grams of crack cocaine in and around Gaston County. Pettus was the leader of the drug ring, and Hardin, and Hankerson were couriers. According to court records, over the course of the conspiracy law enforcement officials seized narcotics, drug paraphernalia, at least 11 firearms and more than $25,000 in cash.
The defendants were charged as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Murray thanks the Federal Bureau of Investigation, Charlotte Division; ICE/Homeland Security Investigations; and the Gastonia Police Department for their investigation of the case
Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
Monroe, N.C. Methamphetamine Trafficker Pleads GuiltyRead the Press Release
CHARLOTTE, N.C. – Larry Allen Elkins, Jr., 31, of Monroe, N.C. appeared before U.S. Magistrate Judge David Keesler yesterday and pleaded guilty to methamphetamine trafficking conspiracy and possession with intent to distribute methamphetamine, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
According to filed court documents and court proceedings, Elkins was part of a narcotics distribution network operating in Union and Mecklenburg Counties and elsewhere. To date, more than 14 individuals have been indicted on federal charges in connection with this investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). The Union County Sheriff’s Office, the Monroe Police Department, the Division of Adult Correction and Juvenile Justice, the FBI and ATF, are among the law enforcement agencies which are task force members.
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.
Those who have been charged federally or have pleaded guilty to federal charges as part of this OCDETF investigation are:
- Jason Albert Frankenberg, 41, of Matthews, N.C.
- Isaac Patton Brown, 46, of Charlotte.
- Johnathan Mitchell Goodwin, 36, of Wadesboro, N.C.
- Elizabeth Lorraine Lewis, 28, of Pinnacle, N.C.
- Nestor Martin Fernandez, 38, of Charlotte.
- Emilio Mejia, 28, of Charlotte.
- Rodolfo Medina, 47, of Charlotte.
- Jose Javier Reyes, 19, of Charlotte.
- Mauco Contreras, 21, of Charlotte.
- Kevin Eliezer Velasquez Melendez, 18, of Concord, N.C.
- Alejandro Jose Lopez Ceballos, 20, of Charlotte.
- Martha Olivia Placencia Beltran, 48, of Charlotte.
- Edgar Jesus Magana, 24, of Charlotte.
- Brandy Nicole Short, 34, of Gastonia, N.C.
According to filed court documents and court proceedings filed in Elkins’s case and related cases, the defendants are part of a drug network responsible for trafficking large amounts of methamphetamine and heroin in North Carolina, including in Union County. Over the course of the investigation, law enforcement seized more than five kilograms of methamphetamine, numerous firearms, and cash drug proceeds.
Assistant U.S. Attorneys Jennifer Dillon and Special Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.
China Grove, N.C. Man Sentenced to More Than 11 Years for Online Enticement of A MinorRead the Press Release
CHARLOTTE, N.C. – Shawn Steven Wilson, 33, of China Grove, N.C., was sentenced today to 142 months in prison for enticement of a minor using the internet, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Robert J. Conrad, Jr. also ordered Wilson to serve a lifetime of supervised release and to register as a sex offender.
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 Charlotte Mecklenburg Police Department.
According to court documents and today’s court proceedings, Wilson responded to an online posting for individuals interested in engaging in sexual contact with a minor. From August 17 to September 1, 2016, Wilson engaged in multiple communications with an FBI undercover employee posing as the minor’s parent. During the exchanges, Wilson discussed his interest in engaging in sexual contact with the minor who he believed to be an 11-year-old girl, asked for naked pictures of the minor, and made arrangements to meet her. Law enforcement arrested Wilson when he arrived to meet the minor at an agreed-upon location for the purpose of engaging in sexual activities.
Wilson pleaded guilty in June 2017 to one count of online enticement of a minor. He is currently in federal custody and will be transferred to custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The FBI led the investigation assisted by CMPD. The U.S. Attorney’s Office 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 the U.S. Attorney’s Office 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.
Previously Convicted Drug Trafficker Sentenced to 32 YearsRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced James Christopher Gann, 36, of Asheville, to 391 months in prison and five years of supervised release on drug trafficking conspiracy and witness intimidation charges, 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, joins U.S. Attorney Murray in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Gann was convicted in 2007 of conspiracy to distribute methamphetamine and was ordered to serve more than six years in prison. Upon his release from prison in late 2016 and continuing through February 2017, Gann trafficked more than 22 kilograms of high-purity methamphetamine into North Carolina from a supply source in Oklahoma. Court records show that Gann recruited his girlfriend and co-defendant, Elizabeth Ann Hollifield, to assist him in the sale of the methamphetamine.
According to court records, during an undercover drug transaction, law enforcement arrested Hollifield, who subsequently agreed to cooperate with the investigation. According to court records, when Gann became aware of Hollifield’s cooperation with law enforcement, he physically assaulted her on two separate occasions to dissuade her from further interaction with the authorities.
Gann pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine and assault with intent to hinder, delay and prevent communication to law enforcement.
Hollifield was previously sentenced to 63 months in prison after pleading guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine. All federal sentences are served without the possibility of parole.
HSI led the investigation. Assistant U.S. Attorney Daniel Bradley of the U.S. Attorney’s Office in Asheville prosecuted the case.
Three Charged in $1 Million Bank Loan SchemeRead the Press Release
CHARLOTTE, N.C. – Stanley Reginald Barron, 37, of Cornelius, N.C. and his co-conspirator, Kimberlie L. Flemings, 49, of Mt. Holly, N.C., were indicted on federal charges in connection with a $1 million bank loan scheme, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. A third person, Brian Lyles, 46, formerly of Jersey City, New Jersey, was also charged separately for his role 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 (USPIS), and Steven Perez, Special Agent in Charge of the Northeast Region of the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG).
According to the charging documents and court proceedings, from at least 2012 to 2015, Barron, Flemings, Lyles and others executed a fraudulent scheme to obtain automobile and personal loans from at least 19 financial institutions. The co-conspirators submitted dozens of fraudulent loan applications in their names, and the names of at least 30 other individuals, to at least 19 banks and credit unions. As a result of the fraudulent scheme, the indictment alleges that the three defendants obtained more than $1 million in fraudulent loan proceeds.
According to allegations contained in the charging documents, Barron, Flemings and Lyles submitted the fraudulent loan applications for individuals they had recruited, falsely stating the loans would be used to purchase automobiles, among other things. Many of the recruited loan applicants had negative information in their credit histories which made getting legitimate loans difficult. Because of this, Barron and others fraudulently “cleaned” or “repaired” the credit reports of certain loan applicants to improve the chances of obtaining a loan from the banks and credit unions. For example, the indictment alleges, Barron and Flemings filed police reports online in the names of certain loan applicants, falsely claiming that the loan applicants were victims of identity theft and that the negative items on their credit reports were due to the identity theft. Barron, Flemings and others also submitted falsified supporting documents with the loan applications, including false employment and income information.
The indictment alleges that to further execute the scheme, Barron and his co-conspirators created fake automobile dealerships that purported to be the sellers of vehicles purchased with the fraudulent loans. They also set up bank accounts, websites, and addresses associated with these fake automobile dealerships and created fictitious purchase orders which were submitted to the financial institutions as part of the loan application.
According to allegations contained in court documents, Barron, Flemings and Lyles deposited the fraudulently-obtained checks from the financial institutions into accounts Barron controlled. After keeping a portion of the fraudulent loan proceeds, Barron distributed the rest to his co-conspirators. In this manner, Barron and others obtained more than 25 checks, totaling more than $1 million, from at least 12 financial institutions.
Court documents allege that after Barron and others obtained the proceeds from the fraudulent loans, the majority of the loans defaulted, causing losses to the impacted financial institutions. To cover up the fraud, Barron and others made false statements to the defrauded banks and credit unions that attempted to collect on the debts, including that borrowers had been the victims of identity theft and that they had not authorized the loans.
Baron, Flemings and Lyles are charged with one count of conspiracy to commit wire and bank fraud. Barron and Flemings are also each charged with wire fraud affecting financial institutions and nine counts of financial institution fraud. Barron also faces a money laundering conspiracy charge.
An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty. The wire and bank fraud conspiracy charge carries a maximum sentence of 30 years in prison and a $1,000,000 fine. The wire fraud affecting financial institutions charge carries a maximum prison term of 20 years in prison and a $250,000 fine. Each of the nine financial institution fraud charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine. The money laundering conspiracy charge carries a maximum penalty of 10 years in prison and a $250,000 Fine.
USPIS and FHFA-OIG led the investigation. Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.
35 Members and Associates of Bloods Gang Plead Guilty to Racketeering Conspiracy and Related Charges, Including Drug Trafficking and Wire FraudRead the Press Release
Thirty-five members and associates of the Nine Trey Gangsters set of the United Blood Nation (UBN) street gang, including a “Godfather” as well as other high-ranking leaders of the organization, have pleaded guilty to racketeering conspiracy and related charges in North Carolina, including drug trafficking, wire fraud, firearm possession, and the use of a firearm in furtherance of a crime of violence and drug trafficking.
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.
“The pleas announced today are part of an extensive investigation by a broad array of federal, state, and local law enforcement agencies—including the Criminal Division’s Organized Crime and Gang Section—whose goal has been to disrupt and dismantle the Nine Trey Gangsters, a dangerous set of the United Blood Nation street gang,” said Acting Assistant Attorney General Cronan. “By targeting the high-ranking individuals who were directing the gang’s activities—from locations up and down the eastern United States, both within prisons and in our communities—today’s pleas constitute a substantial step towards the gang’s eradication.”
“When my office indicted 83 Bloods gang members and senior leaders, the goal was to deliver a major blow to this organized criminal enterprise responsible for raging turf wars, rampant drug distribution and bloody gang violence,” said U.S. Attorney Murray. “We’ve made significant progress toward that goal but the work is far from over. Communities across Western North Carolina know firsthand the trail of violence and devastation gangs leave behind. We have a duty to protect the public from gang violence and to bring relief to neighborhoods afflicted by gang activity. Working with our law enforcement partners we will continue to combine our efforts and resources to keep our communities safe and to protect our children from violent street gangs.”
“The assaults, the robberies, the drug deals, each and every crime committed by these ruthless gang members was a blow to the safety of our communities,” said Special Agent in Charge Strong. “The guilty pleas by these suspects are the next step in securing justice for every innocent person who was impacted by the violent actions of these gangs members.”
Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy. According to the factual basis of Rosero’s plea agreement, 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.” 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. According to a recorded jail call, Omari Rosero admitted to being, together with Pedro Gutierrez, aka Magoo, and James Baxton, aka Frank White, “the last ones that God put in power” over the UBN. Rosero conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections.
Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty today to racketeering conspiracy. Rosero, who has a tattoo of “Mrs. Uno B” on her chest, referring to Omari Rosero, maintained a Facebook account through which private messages were sent from Omari Rosero to other Bloods leaders. According to the factual basis of her plea agreement, Porsha Rosero further 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.”
In addition to Omari and Porsha Rosero, seven other defendants with high-ranking leadership positions have previously pleaded guilty in this investigation:
- 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, according to a court-approved wiretap, 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.”
Furthermore, 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, aka 5-Star, aka 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.
According to admissions made in connection with the plea agreements, 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.”
Furthermore, the plea agreements note that 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.
The convictions are the result of a joint effort 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 Internal Revenue Service 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. The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Western District of North Carolina.
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.
35 Members and Associates of Bloods Gang Plead Guilty to Racketeering Conspiracy and Related Charges, Including Drug Trafficking and Wire FraudRead the Press Release
WASHINGTON – Thirty-five members and associates of the Nine Trey Gangsters set of the United Blood Nation (UBN) street gang, including a “Godfather” as well as other high-ranking leaders of the organization, have pleaded guilty to racketeering conspiracy and related charges in North Carolina, including drug trafficking, wire fraud, firearm possession, and the use of a firearm in furtherance of a crime of violence and drug trafficking.
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.
“The pleas announced today are part of an extensive investigation by a broad array of federal, state, and local law enforcement agencies—including the Criminal Division’s Organized Crime and Gang Section—whose goal has been to disrupt and dismantle the Nine Trey Gangsters, a dangerous set of the United Blood Nation street gang,” said Acting Assistant Attorney General Cronan. “By targeting the high-ranking individuals who were directing the gang’s activities—from locations up and down the eastern United States, both within prisons and in our communities—today’s pleas constitute a substantial step towards the gang’s eradication.”
“When my office indicted 83 Bloods gang members and senior leaders, the goal was to deliver a major blow to this organized criminal enterprise responsible for raging turf wars, rampant drug distribution and bloody gang violence,” said U.S. Attorney Murray. “We’ve made significant progress toward that goal but the work is far from over. Communities across Western North Carolina know firsthand the trail of violence and devastation gangs leave behind. We have a duty to protect the public from gang violence and to bring relief to neighborhoods afflicted by gang activity. Working with our law enforcement partners we will continue to combine our efforts and resources to keep our communities safe and to protect our children from violent street gangs.”
“The assaults, the robberies, the drug deals, each and every crime committed by these ruthless gang members was a blow to the safety of our communities,” said Special Agent in Charge Strong. “The guilty pleas by these suspects are the next step in securing justice for every innocent person who was impacted by the violent actions of this gang’s members.”
Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy. According to the factual basis of Rosero’s plea agreement, 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.” 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. According to a recorded jail call, Omari Rosero admitted to being, together with Pedro Gutierrez, aka Magoo, and James Baxton, aka Frank White, “the last ones that God put in power” over the UBN. Rosero conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections.
Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty today to racketeering conspiracy. Rosero, who has a tattoo of “Mrs. Uno B” on her chest, referring to Omari Rosero, maintained a Facebook account through which private messages were sent from Omari Rosero to other Bloods leaders. According to the factual basis of her plea agreement, Porsha Rosero further 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.”
In addition to Omari and Porsha Rosero, seven other defendants with high-ranking leadership positions have previously pleaded guilty in this investigation:
- 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, according to a court-approved wiretap, 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.”
Furthermore, 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, aka 5-Star, aka 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.
According to admissions made in connection with the plea agreements, 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.”
Furthermore, the plea agreements note that 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.
The convictions are the result of a joint effort 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 Internal Revenue Service 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.
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.
Gastonia Man Charged in Series of Car Break-Ins at Pisgah National Forest Is Sentenced to Three YearsRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced David Duane Banchetto, 43, of Gastonia, N.C., to 36 months in prison and three years of supervised release for his role in a series of car break-ins at Pisgah National Forest, announced R. Andrew Murray, United States Attorney for the Western District of North Carolina. Banchetto was also ordered to pay restitution to all the victims for the costs of the vehicle repairs and for the value of the property that was stolen.
Greg Wiest, Acting Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Sheriff David A. Mahoney of the Transylvania County Sheriff’s Office join U.S. Attorney Murray in making today’s announcement.
According to court documents and today’s sentencing hearing, Banchetto and co-defendants, Elija Antwon Hope, Heather Nicole Postell, Montzerrath Tello-Aguilar and Kaleb Alexander Weaver engaged in a scheme to break into cars at Pisgah National Forest, to steal credit cards, debit cards and other items from vehicles parked in the area. Court records show that on June 29, 2017, law enforcement began to receive reports of multiple vehicle break-ins in that area. In the days that followed, at least five vehicle breaking and entering cases had been reported. Over the course of the investigation, law enforcement recovered surveillance videos and pictures from local businesses where the stolen credit/debit cards had been used. On July 16, 2017, law enforcement arrested the five co-conspirators after a suspicious vehicle was reported in an area of Pisgah National Forest. According to court records, law enforcement determined that Banchetto was the person responsible for breaking out the windows of the vehicles from which the items were stolen. On November 22, 2017, Banchetto pleaded guilty to destruction of property on national lands.
Tello-Aquilar was previously sentenced to six months in prison and two years of supervised release. The remaining three co-defendants, Hope, Postell and Weaver, are currently awaiting sentencing.
In announcing today’s sentence Judge Reidinger referred to the national forests and parks of the Western District of North Carolina as “national treasure” and property of all citizens, noting that these types of crimes deter people from coming and enjoying them.
The Transylvania Sheriff’s Office and HSI led the investigation.
* * *
In a separate case, Judge Reidinger also sentenced today Mack Blaine Whittle, 32, of Anderson, S.C., to 33 months in prison and three years of supervised release for a series of car break-ins at Pisgah National Forest and the Blue Ridge Parkway in June 2017. Whittle was also ordered to pay restitution to the victims for the costs of the vehicle repairs and for the value of the property he stole. According to court records, Whittle broke into parked vehicles, stealing cash, debit cards and other items, including a firearm. Over the course of the investigation, law enforcement determined that Whittle had attempted to pawn unsuccessfully some of the stolen items, including the firearm. Law enforcement also determined that Whittle had a prior conviction and was prohibited from possessing a firearm. Whittle’s co-defendant, Lisha Nicole Minor, admitted that she had been with Whittle when the vehicle break-ins occurred, and that she had been using her cell phone to look up the values of some of the stolen items. She was also sentenced today to 14 months in prison and three years of supervised release.
U.S. Attorney Murray thanked the U.S. Forest Service, the Transylvania County Sheriff’s Office and the Brevard Police Department for their investigation of the case.
Assistant United States Attorney Richard Edwards, of the U.S. Attorney’s Office in Asheville, prosecuted both cases.
Supervisor of Fraudulent Debt Collection Company Pleads Guilty for His Role in Conspiracy to Defraud Victims Throughout the United StatesRead the Press Release
CHARLOTTE, N.C. – Ronald Shane Hough, 50, of Mt. Holly, N.C. pleaded guilty to federal charges for his role in a fraudulent debt collection scheme operating out of Mecklenburg County, announced R. Andrew Murray, United States Attorney for the Western District of North Carolina.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division, joins the U.S. Attorney’s Office in making today’s announcement.
Hough appeared before U.S. Magistrate Judge David C. Keesler and admitted he was a collections manager for Direct Processing LLC (Direct Processing), a fraudulent debt collection company. According to documents filed in connection with the guilty plea, while working there, Hough and others defrauded victims by using fraudulent misrepresentations and threatening and abusive tactics to induce victims to pay money they purportedly owed. The fraudulent tactics included using fictitious company names in communications with victims and falsely representing that there was pending litigation or charges against victims. The filed criminal bill of information states that, between January 2013 and July 2014, Hough and others at Direct Processing defrauded thousands of individuals throughout the United States of between $550,000 and $1,000,000.
“Hough is a financial predator who harassed, bullied and tricked victims into paying off debts that, in many instances, were not owed. The victims targeted by the scheme, some of whom were elderly, were forced to pay off debts, many times fictitious, just to get the harassing calls to stop. Protecting Americans from financial exploitation is a priority for this office and we will continue to go after fraudulent debt collection companies that use threats and lies to force victims into submitting to demands for money,” said U.S. Attorney Murray.
Hough pled guilty to conspiracy to commit mail and wire fraud. The maximum prison term for the charge is five years. A sentencing date has not yet been set.
The Federal Bureau of Investigation led the investigation. Assistant United States Attorney William M. Miller, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Eight Charged in Drug Conspiracy Operating in Mecklenburg CountyRead the Press Release
CHARLOTTE, N.C. – United States Attorney R. Andrew Murray announced today that eight individuals are facing federal drug conspiracy charges for their involvement in a narcotics distribution ring operating in Mecklenburg County. A federal criminal indictment was filed on February 22, 2018, and was unsealed late yesterday in federal court following arrests conducted during an early morning round-up.
“The federal charges announced today are the culmination of a 10-month investigation into a drug conspiracy responsible for distributing large quantities of methamphetamine and heroin in the Western District. The arrests of these individuals are a testament to the high level of cooperation between our federal and local law enforcement counterparts as we work together to achieve our common goal: to disrupt drug networks from operating in this district and to stem the flow of drugs they pour into our communities,” said U.S. Attorney Murray.
“Drug abuse is a growing concern across North Carolina. Drug dealers victimize our communities, strain law enforcement resources, and diminish quality of life for everyone. The FBI will continue to join forces with our state and local law enforcements partners to track down these offenders to end the deadly cycle of drug abuse in our communities,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
“This investigation is a good example of what ATF agents do on a daily basis. It also reflects our commitment to removing drug traffickers and their co-conspirators from our streets. ATF will continue to work collaboratively with our federal, state and local investigative partners to identify and apprehend violent career criminals and keep our communities safe,” said Wayne Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“The role of IRS, Criminal Investigation in narcotics investigations is to follow the money, which enabled us to financially disrupt and dismantle this major drug trafficking organization. We were proud to provide this financial expertise as we worked alongside our law enforcement partners to bring these criminals to justice,” said Matthew D. Line, Acting Special Agent in Charge for IRS-CI.
“We will continue to work with our federal partners to identify and arrest anyone who brings these dangerous and highly-addictive drugs into our community,” said Charlotte-Mecklenburg Police Chief Kerr Putney. “They are destroying families. We must do everything we can to combat these deadly drugs and the many crimes they bring with them," said Charlotte-Mecklenburg Police Chief Kerr Putney.
“We are grateful for the hard work of all the federal agents, local officers and federal prosecutors who participated in this long term drug investigation. Unfortunately, heroin and methamphetamine has impacted virtually every community in the country, including Union County, and we must continue to use all available resources to protect our citizens and bring dealers to justice. Too many families have lost loved ones as a result of this epidemic, so every drug dealer taken off the street is potentially saving someone’s life,” said Union County Sheriff Eddie Cathey.
“I commend the work and efforts of all the individual officers and agents involved in this investigation. This investigation demonstrates the value of professional partnerships across jurisdictional lines and sharing resources to keep our communities safe,” said Gastonia Police Chief Robert C. Helton
According to allegations contained in the criminal indictment and other filed court documents, from 2015 until the present, the defendants operated as a drug conspiracy responsible for trafficking methamphetamine and heroin in Mecklenburg County and surrounding areas. The defendants named in the 33-count indictment are all charged with conspiracy to distribute and to possess with intent to distribute methamphetamine. Some of the defendants face additional drug trafficking and money laundering offenses. Those named in the indictment are:
- Emilio Mejia, 28, of Charlotte. (arrested)
- Rodolfo Medina, 47, of Charlotte. (arrested)
- Jose Javier Reyes, 19, of Charlotte. (previously arrested on a complaint)
- Mauco Contreras, 21, of Charlotte. (arrested)
- Kevin Eliezer Velasquez Melendez, 18, of Concord, N.C. (previously arrested on a complaint)
- Alejandro Jose Lopez Ceballos, 20, residence unknown. (arrested)
- Martha Olivia Placencia Beltran, 48, of Charlotte. (arrested)
- Edgar Jesus Magana, 24, of Charlotte. (arrested)
Rodolfo Medina, Jose Reyes, and Kevin Velasquez Melendez are also charged with conspiracy to possess with intent to distribute heroin and possession with intent to distribute heroin. Emilio Mejia, Kevin Velasquez Melendez, Mauco Contreras, and Alejandro Ceballos are charged with additional counts of distribution and possession with intent to distribute methamphetamine. Rodolfo Medina and Martha Beltran are also facing charges of international money laundering, stemming from money transfers of drug proceeds wired to Mexico.
A separate criminal indictment was filed charging Brandy Nicole Short, 34, of Gastonia, N.C. with possession with intent to distribute methamphetamine, bringing the total number of those arrested in connection this investigation to nine.
The penalties associated with the drug charges range from a mandatory minimum of 10 years in prison and a maximum of up to life in prison and a monetary fine of up to $10 million. The money laundering charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
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 praised the outstanding efforts of special agents of the Federal Bureau of Investigation (FBI), under the direction of Special Agent in Charge John A. Strong; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge Wayne Dixie; the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) under the direction of Acting Special Agent in Charge Matthew D. Line; officers of the Charlotte-Mecklenburg Police Department under the direction of Chief Kerr Putney; the Gastonia Police Department under the direction of Chief Robert C. Helton; the Monroe Police Department under the direction of Chief J. Bryan Gilliard; and deputies of the Union County Sheriff’s Office under the direction of Sheriff Eddie Cathey. U.S. Attorney Murray also noted the invaluable assistance provided by the North Carolina National Guard Counterdrug Program.
Assistant U.S. Attorneys Jennifer Dillon and Special Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte 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 Judge Sentences Drug Dealer to More Than 11 Years in PrisonRead the Press Release
CHARLOTTE, N.C. Jonathan Cortez, 24, of Charlotte, was sentenced today to 135 months in prison and five years of supervised release on drug charges, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Greg Wiest, Acting Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas 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 records, on February 13, 2017, an undercover officer contacted Cortez to arrange the purchase of 15 kilograms of cocaine. The undercover officer made arrangements to meet with Cortez and another individual at a residence in Mint Hill, N.C., to purchase seven kilograms of cocaine at first, and another eight kilograms at a later time. On the same day, court records show that law enforcement observed Cortez heading toward the meeting location. When law enforcement attempted to stop Cortez’s vehicle, Cortez sped away, eventually crashing the vehicle. Cortez then fled in a second vehicle, but he was taken into custody by law enforcement a short while later.
After Cortez was apprehended, law enforcement executed a search warrant at his residence and seized over seven kilograms of cocaine and two handguns. Cortez has prior felony convictions and he is prohibited from possessing a firearm.
In May 2017, Cortez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 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 HSI and CMPD for investigating the case.
Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Charlotte Man Is Sentenced to 12.5 Years in Prison for Transporting Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney R. Andrew Murray announced today that Charles Gary Humphrey, 42, of Charlotte, was sentenced to 151 months in prison for transporting child pornography. Chief U.S. District Judge Frank D. Whitney also ordered Humphrey to serve a lifetime 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 (FBI), Charlotte Division joins U.S. Attorney Murray in making today’s announcement.
According filed court documents and today’s sentencing hearing, on October 9, 2015, law enforcement became aware that an individual, later identified as Humphrey, was using a peer-to-peer network to view and trade child pornography online. On January 25, 2016, Humphrey transported 55 files that contained a mix of child pornography and child erotica to an undercover FBI agent. Law enforcement executed a search warrant at Humphrey’s residence, seizing his computer. A forensic examination of the computer revealed that it contained more than 5,000 image images and videos of children engaging in sexually explicit conduct. Court records show that some of the images and videos contained identified victims of 25 different series of child pornography.
The FBI’s Crimes Against Children Squad investigated the case. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Charlotte Man Is Sentenced to 10 Years in Prison for Second Child Pornography ConvictionRead the Press Release
CHARLOTTE, N.C. – Clarence Robert Brown, Jr., 61, of Charlotte, was sentenced today to 10 years in prison for possessing videos depicting child pornography, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max. O. Cogburn, Jr. also ordered Brown to serve 20 years of supervised release.
Brown pleaded guilty on September 25, 2017, to possessing child pornography on his computer. At the time, Brown was on supervised release for a 2005 federal conviction of possession and transportation of child pornography, for which he had served five years in prison. According to the terms of his supervised release for the prior conviction, Brown was prohibited from owning a computer, an internet hub, or any device that could access the internet, without obtaining approval from the U.S. Probation Office. On August 15, 2016, a probation officer discovered the computer and thumb drives at Brown’s home while conducting a routine visit.
According to court records, Brown admitted to purchasing the items so he could access the internet, even though he knew he could not “have the internet.” A forensic analysis of Brown’s computer revealed that it contained child pornography.
“This is Brown’s second federal conviction for possessing sexually explicit material depicting minors,” said U.S. Attorney Murray. “The online exploitation of children is a serious crime and the 10-year prison term imposed by the Court reflects that. The lengthy sentence also ensures that Brown can no longer harm and victimize innocent children.”
In making today’s announcement, U.S. Attorney Murray thanks the FBI and the U.S. Probation Office in the Western District of North Carolina for investigating the case.
Assistant U.S. Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Justice Department Announces Nationwide Elder Fraud Sweep of More Than 250 DefendantsRead the Press Release
CHARLOTTE, N.C. – The Justice Department announced today the results of the largest coordinated sweep of elder fraud cases in history. The cases involve more than 250 defendants from around the globe who victimized more than a million Americans, most of whom were elderly.
According to the Justice Department’s announcement, the cases include criminal, civil, and forfeiture actions across more than 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars.
In the Western District of North Carolina, combating the financial exploitation of the elderly is an important part of the U.S. Attorney’s Office broader emphasis on fraud targeting vulnerable populations.
“Each year, millions of older Americans become victims of financial fraud. The impact can be devastating both psychologically and financially. As part of the U.S. Attorney’s Office’s commitment to protecting vulnerable populations, we are enhancing our efforts to educate the elderly about investment fraud schemes and consumer scams to protect them from financial exploitation. We will also investigate and prosecute financial predators who unabashedly steal from older Americans causing irreparable financial harm,” said U.S. Attorney R. Andrew Murray.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
The actions announced today charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
Federal Prosecutions by the U.S. Attorney’s Office
Alan Peter Darcy, 80, of Murphy, N.C., was sentenced on Thursday, February 15, 2018, to 108 months in prison on wire fraud charges, in connection with an investment fraud scheme that defrauded multiple victims, some of whom were elderly, of more than $800,000. In addition to the prison term, Darcy was ordered to serve three years under court supervision and to pay restitution in the amount of $740,028.43. According to court records and the sentencing hearing, between February 2012 to June 2016, Darcy carried out the fraud scheme by inducing his victims to invest in a variety of bogus financial instruments and products. Darcy did so by claiming that he had access to, and multiple successes with, specialized opportunities for obtaining private banking instruments and engaging in lucrative trading opportunities not available to the general public.
Court documents state that Darcy also induced victims to part with their money by lying about how the victims’ money would be used or invested, and about when and how Darcy and his businesses would be compensated. Instead of holding the victims’ money in escrow or in trust accounts for the victims as he had promised, Darcy deposited the money into bank accounts he controlled and spent more than $400,000 of the victims’ money to fund his personal lifestyle, including personal expenditures such as entertainment, travel and the purchase of a used Jaguar automobile.
Public Education
“Education is an important component of our efforts to protect our seniors from suffering financial devastation in the hands scammers. Knowing about the different types of financial investment schemes, what to look out for, what questions to ask, and what to do if contacted by fraudsters is key to avoid getting ripped off by unscrupulous individuals trying to gain access to older Americans’ nest eggs.”
In making today’s announcement, U.S. Attorney Murray cautioned all Americans to look out for scams targeting the elderly, including:
- “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
- “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
- “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
- “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
- “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.
The U.S. Attorney’s Office has conducted educational seminars for elderly investors on avoiding investment fraud schemes and safeguarding savings from potential fraudsters.
The seminars cover a broad range of topics, including the most common types of investment fraud scams targeting the elderly, red flags to watch out if approached by someone touting an investment opportunity, tips on how to avoid becoming the victim of an investment scheme, and who to contact to report a suspicious investment offer or if you have been the victim of an investment scam.
Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.
Federal Jury Finds Charlotte Man Guilty of Possession, Receipt and Transportation of Child PornographyRead the Press Release
CHARLOTTE, N.C. – A federal jury sitting in Charlotte convicted Jose Antonio Hendricks, 59, of Charlotte, of possession, receipt and transportation of child pornography following a two-day trial, announced R. Andrew Murray U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. presided over the trial.
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.
“Child predators often seek shelter in the anonymity the internet offers to exploit and harm innocent children. This is a global epidemic that we must confront with an aggressive, technology-driven response,” said U.S. Attorney Murray. “Today’s guilty verdict sends a message that the internet is no longer a safe haven for those who engage in child sexual exploitation. Online predators will be located, prosecuted and ultimately removed from society and away from vulnerable children.”
According filed court documents, trial evidence and witness testimony, on October 14, 2014, law enforcement became aware that an individual, later identified as Hendricks, was using a peer-to-peer network to view and to trade child pornography online. Trial evidence established that between October 2014 and February 2015, law enforcement connected to the IP address, later identified as Hendricks’, approximately 70 times. During a vast majority of these sessions, law enforcement were able to confirm that Hendricks was sharing either child pornography or child erotica.
According to evidence presented at trial, law enforcement executed a search warrant at Hendrick’s residence on March 12, 2015, seizing a tablet and the tablet’s SD card. A forensic examination of the devices revealed that they contained numerous images of child pornography. There was also evidence that Hendricks was accessing numerous child pornography websites that include sadistic or masochistic images of children.
The charges for transportation of child pornography and receipt of child pornography carry a minimum sentence of five years and a maximum of 20 years in prison. The charges for possessing and accessing child pornography carry a maximum sentence of 20 years. A sentencing date has not been set.
The FBI’s Crimes Against Children Squad investigated the case. Assistant U.S. Attorneys Cortney Randall and William Stetzer of the U.S. Attorney’s Office in Charlotte are 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.
Bookkeeper Pleads Guilty to Embezzling More Than $1.5 Million from Former Employer and Committing Tax FraudRead the Press Release
CHARLOTTE, N.C. – The former bookkeeper of a company located in Watauga Co. admitted in federal court today to embezzling more than $1.5 million from her employer and committing tax fraud, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Connie S. Franklin, 58, of Boone, N.C. appeared before U.S. Magistrate Judge David C. Keesler and pleaded guilty to one count of bank fraud and one count of filing false tax returns.
U.S. Attorney Murray is joined in making today’s announcement by Reginald DeMatteis, Special Agent in Charge of the U.S. Secret Service, Charlotte Field Office (USSS) and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to filed documents and today’s court proceedings, from 2008 until 2016, Franklin perpetrated a scheme to embezzle funds from the bank account of the company where she worked as bookkeeper, by falsely signing the names of the victim company’s executives to company checks made payable to herself. To conceal the fraud, Franklin then falsely coded the transactions as “freight” expenses in the victim company’s books and records. Court documents state that during the roughly nine-year scheme, Franklin embezzled approximately $1,595,472.82.
According to the filed charging document, Franklin also understated her taxable income by more than $1.4 million during the course of the scheme. For example, despite having a taxable income of $332,579 in 2015, Franklin reported an income of only $49,398. In total, court records show that Franklin understated her tax liability by more than $330,000.
Franklin is currently released on bond. The bank fraud charge carries a maximum of 30 years in prison and a $1,000,000 fine. The maximum penalty for the charge of filing a false tax return is three years in prison and a $100,000 fine. A sentencing date has not been set.
USSS and IRS-CI led the investigation. U.S. Attorney Murray also thanks the Boone Police Department and the Watauga County District Attorney’s Office for their significant assistance over the course of the investigation. Assistant U.S. Attorney Taylor J. Phillips of the U.S. Attorney’s Office, in Charlotte is in charge of the prosecution.
Federal Jury Convicts Charlotte Man of Using an Altered Document to Obtain a United States Passport, Passport Application Fraud and Making False Statements to Federal AgentsRead the Press Release
CHARLOTTE, N.C. – A federal jury convicted John Daley Strothers, 59, of Charlotte, on four counts of using a false document in a federal matter, making a false statement to obtain a passport, possession of a fraudulent identification document (birth certificate) and making a false statement to federal agents, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Murray is joined in making today’s announcement by Richard J. Ingram, Special Agent in Charge, Diplomatic Security Service, Washington Field Office, U.S. Department of State.
According to filed court documents and evidence presented at trial, Strothers engaged in fraudulent conduct to obtain a United States passport in the name of his alias Giovanni Daliente Strassini. Trial evidence established, on September 28, 2015, Strothers submitted an application for a United States passport at a postal facility in Charlotte. In support of the passport application, Strothers attached an Ohio birth certificate that was altered. The birth certificate Strothers submitted identified him in the name of his alias “Giovanni Daliente Strassini,” and it contained several other fraudulent alterations. Because of these alterations, Strothers’ application was referred to the fraud section of the United States passport processing center in Charleston, South Carolina. A witness from that section testified that they screen passport applications and the documents attached to them to ensure that only applicants who establish their true identities and prove their citizenship statuses are issued a United States passport.
During trial, a witness from the Ohio Department of Health, Bureau of Vital Statistics, testified that nobody under the name “Giovanni Daliente Strassisni” had even been born in the State of Ohio. Trial evidence also established that the true birth certificate for the Strothers was issued in the name “John Daley Strothers.” Trial evidence further established that Strothers had previously submitted his true birth certificate, identifying himself as “John Daley Strothers,” in connection with a prior application for a United States passport submitted on October 7, 1996.
Finally, the Government’s evidence will show that Strothers participated in a voluntary interview with Special Agents of the U.S. Department of State’s Diplomatic Security Service on or about March 1, 2016. During that interview, Strothers falsely stated that “Giovanni Daliente Strassini” was his birth name and that he did not submit an application for a United States passport on October 7, 1996.
The federal jury delivered the guilty verdict following a one and a half day trial. Strothers is currently released on bond. The penalty for using a false writing in a federal matter and giving false statements to federal agents is a maximum term of five years in prison and a $250,000 fine. The penalty for passport application fraud is a maximum term of ten years in prison and a $250,000 fine. The penalty for possessing a fraudulent identification document is a maximum of 15 years in prison and a $250,000 fine.
A sentencing date for the defendant has not been set.
The U.S. Department of State’s Diplomatic Security Service led this investigation. Assistant United States Attorneys Kenneth Smith and Casey Arrowood of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Forty-Four Arrested on Federal and State Charges in Coordinated Law Enforcement TakedownRead the Press Release
CHARLOTTE, N.C. – Multiple teams of federal, state and local law enforcement agents and officers arrested 44 individuals over the course of the past two days, in a coordinated takedown that began early Monday morning, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Of those arrested, 12 face federal gun and drug charges and 32 are charged with state offenses. Federal arrest warrants have been issued for three more individuals, bringing the total number of those who will be prosecuted federally to 15.
Wayne L. Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; North Carolina Secretary of Public Safety Eric A. Hooks; and Chief Kerr Putney, of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney Murray in making today’s announcement.
“This morning’s arrests are the result of a joint eight month investigation into repeat offenders who disregard public safety, violate our nation’s gun and drug laws, and pose a threat to the community,” said U.S. Attorney Murray. “U.S. Attorney General Jeff Sessions directed U.S. Attorneys’ Offices across the country to reinvigorate Project Safe Neighborhoods (PSN), a program that has been historically successful in reducing violent crime. Today’s coordinated action is one component of my office’s comprehensive PSN strategy, which focuses on bringing together all levels of law enforcement to address violent crime, and partnering with our local communities to create an environment where all citizens can safely live, work and prosper.”
“This operation is a great example of the ATF/CMPD Violent Crime Task Force working with our investigative partners to remove violent individuals and career criminals from our communities,” said ATF Special Agent in Charge Dixie.
“These operations play an important role in keeping our community safe. Crime fighting and prevention is more than a strategy, it’s a priority. As we work to engage young people in positive ways, we also will continue to focus on violent, repeat offenders who bring illegal drugs and guns into our neighborhoods,” said Charlotte-Mecklenburg Police Chief Putney. “We will continue to work together with our state and federal partners, along with our formal and informal community leaders, to identify and remove dangerous criminals from our community.”
“This collaboration between federal, state, and local law enforcement sends a clear message that our state has zero tolerance for those committing violent crimes,” said Public Safety Secretary Hooks. “If you choose to engage in this kind of criminal activity, you will be arrested and brought to justice.”
The 12 arrested today on federal charges are:
- Abdul Nafir Barilford, 35, residence unknown.
- Mark Jefferson Belton, 29, of Charlotte.
- Amos Lamar Burch, 34, of Charlotte.
- Rodney Funderburk, 38, residence unknown.
- Elontrae Ali Glenn, 23, of Rock Hill, S.C.
- Rodriquez Harris, 43, of Charlotte.
- Rakeem McCullough, 28, of Charlotte.
- David DeAngelo McNeil, 37, of Charlotte (in federal custody).
- Rodriquez Neal, 23, of Charlotte. Rashad Taylor, 26, of Charlotte.
- Jimmy Ward, 42, of Cherryville, N.C. (previously in state custody)
- Montique Williams, 30, of Charlotte.
Daryl Brown, 49, Carlos Massey, 34, and Ishmerai Hem Ef Muhammad El, 37, of Charlotte, are still wanted by law enforcement. (Table below lists charge(s) for each defendant)
The ATF/CMPD Violent Crime Task Force worked jointly with CMPD’s Vice & Narcotics unit, the U.S. Marshals Service, the North Carolina Department of Public Safety, and federal and state prosecutors to identify violent and repeat offenders in the Charlotte-Mecklenburg area engaging in illegal firearm activity, drug sales, and other criminal acts.
Over the course of the investigation, law enforcement recovered more than 27 firearms and illegal substances, including heroin, cocaine, crack cocaine, methamphetamine, marijuana, and MDMA (ecstasy) pills. Law enforcement seized more firearms and controlled substances while executing arrest and search warrants over the past two days.
The charges contained in the indictments 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 ATF and CMPD for their investigative efforts, and thanks the U.S. Marshals Service, the North Carolina Department of Public Safety’s Adult Correction and Juvenile Justice, Special Operations and Intelligence Unit, and the Mecklenburg County District Attorney’s Office for their invaluable assistance throughout this investigation.
Assistant U.S. Attorney Lambert Guinn, of the U.S. Attorney’s Office in Charlotte, is in charge of the federal prosecutions.
Name
Charge(s)
Abdul Nafir Barilford 3:18-cr-36
Felon in possession of a firearm
Mark Jefferson Belton 3:18-cr-48
Distribution and possession with intent to distribute crack cocaine and possession of a firearm in furtherance of a drug trafficking crime
Daryl Brown 3:18-cr-44
Distribution and possession with intent to distribute crack cocaine and felon in possession of a firearm
Amos Lamar Burch 3:18-cr-40
Distribution and possession with intent to distribute crack cocaine and felon in possession of a firearm
Rodney Funderburk 3:18-cr-47
Distribution and possession with intent to distribute crack cocaine and felon in possession of a firearm
Elontrae Ali Glenn 3:18-cr-42
Distribution and possession with intent to distribute heroin and felon in possession of a firearm
Rodriguez Harris 3:18-cr-38
Felon in possession of a firearm
Carlos Massey 3:18-cr-37
Felon in possession of a firearm
Rakeem McCullough 3:18-cr-50
Distribution and possession with intent to distribute cocaine and crack cocaine, felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime
David DeAngelo McNeil 3:18-cr-45
Distribution and possession with intent to distribute crack cocaine
Ishmerai Hem Ef Muhhammad El 3:18-cr-41
Distribution and possession with intent to distribute cocaine and crack cocaine and felon in possession of a firearm
Name
Charge(s)
Rodriquez Neal 3:18-cr-43
Distribution and possession with intent to distribute cocaine and crack cocaine and felon in possession of a firearm
Rashad Taylor 3:18-cr-49
Distribution and possession with intent to distribute cocaine
Jimmy Ward 3:18-cr-46
Distribution and possession with intent to distribute 50 grams or more of methamphetamine
Montique Williams 3:18-cr-39
Felon in possession of a firearm
Buncombe County Man Pleads Guilty to First Degree MurderRead the Press Release
ASHEVILLE, N.C. – Seth Willis Pickering, 38, of Leicester, N.C. pleaded guilty today to first-degree murder for killing his daughter, Lila Pickering, within the boundaries of the Blue Ridge Parkway, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
“Our hearts go out to Lila’s family. No action by the criminal justice system can soothe the pain of their loss,” said U.S. Attorney Murray in announcing today’s guilty plea. “This is an outcome reached after consideration of all the facts and circumstances of this case. By allowing the defendant to plead guilty and serve a life sentence without the possibility of parole, we will spare the family the trauma of a lengthy trial and decades of appeals. We hope this resolution brings some comfort to the family of Lila Pickering.”
Seth Pickering appeared before U.S. District Judge Max. O. Cogburn, Jr. 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’s plea agreement, which the Court has accepted, provides that the defendant will receive a sentence of life in prison without any possibility of parole for his crime.
Pickering remains in federal custody. A sentencing date has not been set.
In making today’s announcement U.S. Attorney Murray thanks 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 are in charge of the prosecution.
Two Costa Rican Residents Found Guilty for Roles in $10 Million International Telemarketing SchemeRead the Press Release
Two individuals were found guilty yesterday for their roles in a $10 million telemarketing scheme that defrauded primarily elderly victims in the United States from call centers in Costa Rica.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney R. Andrew Murray of the Western District of North Carolina made the announcement.
Following a three-day jury trial, Andrew Smith, 45, of San Jose, Costa Rica, and Christopher Lee Griffin, 44, a U.S. citizen who previously resided in San Jose, Costa Rica, were convicted of one count of conspiracy to commit wire fraud, eight counts of wire fraud, one count of conspiracy to commit money laundering and seven counts of international money laundering. Sentencing has not yet been set by U.S. District Court Judge Robert J. Conrad of the Western District of North Carolina, who presided over the trial.
“Andrew Smith and Christopher Lee Griffin orchestrated a brazen telemarketing scheme from Costa Rica and stole more than $10 million,” said Acting Assistant Attorney General Cronan. “But what makes their crimes especially reprehensible is the harm they caused to a significant number of elderly victims. Attorney General Jeff Sessions has called those who exploit our senior citizens ‘cowards,’ and these convictions demonstrate that the Department of Justice will aggressively pursue cowards like these, no matter where they reside.”
According to the evidence presented at trial, both Smith and Griffin worked in a call center in Costa Rica in which conspirators, who posed as representatives of the Securities and Exchange Commission and the Federal Trade Commission (FTC), contacted victims in the United States to tell them that that they had won a substantial “sweepstakes” prize. After convincing victims, many of whom were elderly, that they stood to receive a significant financial reward, the conspirators told victims that they needed to make a series of up-front payments before collecting their supposed prize, purportedly for items like insurance fees, taxes and customs duties. Conspirators used a variety of means to conceal their true identities, such as Voice over Internet Protocols, which made it appear that they were calling from Washington, D.C., and other places in the United States. According to trial testimony, one elderly victim who indicated she was going to stop paying was warned by a conspirator that they knew where she and her family lived.
Smith and Griffin arranged for victims to transmit payments through international wire transfers directly to Costa Rica or through “runners” who collected money from victims in the United States and forwarded payment to Smith, Griffin and others in Costa Rica, according to the evidence presented at trial. Runners dispatched by Smith and his conspirators sometimes met elderly victims at their homes to collect bags of cash, which they in turn remitted to Costa Rica, the evidence showed.
Smith, Griffin and their conspirators stole more than $10 million from victims, the evidence showed.
This case was investigated by the U.S. Postal Inspection Service, Internal Revenue Service Criminal Investigation and the FBI, with assistance from the FTC and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. The Criminal Division’s Office of International Affairs, U.S. State Department’s Diplomatic Security Service (DSS) and Bureau of Consular Affairs, along with government authorities in Costa Rica provided critical assistance with the extradition of these defendants. The case is being prosecuted by Trial Attorneys William Bowne, Jennifer Farer and Anna Kaminska of the Criminal Division’s Fraud Section. The U.S. Attorney’s Office for the Western District of North Carolina provided substantial assistance with this matter.
Armed Methamphetamine Trafficker Is Sentenced to 21 Years in PrisonRead the Press Release
STATESVILLE, N.C. – U.S. Attorney R. Andrew Murray announced today that Joseph Howard Davis, 34, of Charlotte, was sentenced to 260 months in prison on drug trafficking and firearms offenses. U.S. District Judge Richard L. Voorhees also ordered Davis to serve 10 years under court supervision upon completion of his prison term. In July 2017, a federal jury This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN.
According to filed court documents and evidence introduced during Davis’ two-day trial, from in or about 2014 to October 2016, Davis participated in a conspiracy to distribute methamphetamine in and around Catawba county and elsewhere in the Western District. Court records show that over the course of the investigation law enforcement seized from Davis approximately two ounces of 96% pure methamphetamine and two rifles. Davis has a previous felony conviction and is prohibited from possessing a firearm.
* * *
In a separate case, Judge Voorhees also sentenced today Shea David Byrd, 44, of Lenoir, N.C. to 15 years in prison, and Patrick Neal Bates, 50, of Hickory, N.C. to 10 years in prison on methamphetamine trafficking offenses. Byrd and Bates were each ordered to serve five years of supervised release after they are released from prison.
All defendants are 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.
These prosecutions stem from an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF) that has resulted in the conviction of more than 200 defendants on methamphetamine trafficking and firearms charges. OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement agencies and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Murray thanks Gregory L. Wiest, Acting 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; Chief Thurman Whisnant of the Hickory Police Department; and Sheriff Chris Bowman of the Alexander County Sheriff’s Office for their agencies’ coordination and assistance throughout these investigations.
Assistant U.S. Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, was in charge of the prosecution.
Federal Judge Sentences Three Men Involved in International Child Pornography RingRead the Press Release
ASHEVILLE, N.C. – Three men involved in an international online child pornography ring responsible for producing and sharing thousands of images and videos of child pornography were sentenced today by U.S. District Judge Max O. Cogburn, Jr., announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Gregory L. Wiest, Acting Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Sheriff Van Duncan of the Buncombe County Sheriff’s Office join U.S. Attorney Murray in making today’s announcement.
Dane William Anderson, 32, of Candler, N.C., was sentenced to 20 years in prison; Samuel Heineman, IV, 54, of Marietta, Pennsylvania, previously residing in Berlin, Germany, was sentenced to 21 years in prison; and Mark Christopher Klein, 38, of Hugo, Minnesota, was sentenced to 16 years in prison. All three defendants were also ordered to serve a lifetime of supervised release and to register as sex offenders after they are released from prison.
“The three men sentenced today were part of a sinister network of online child predators, responsible for producing and amassing child pornography on a scale rarely seen. It took law enforcement nearly a year to shift through and analyze Anderson’s massive collection of disturbing images and videos,” said U.S. Attorney Murray. “While this sentence will never repair the trauma suffered by the victims in this case, it does, hopefully, send a message of deterrence to other would-be offenders.”
“This was a heinous child predator conspiracy, crossing international and state borders,” said acting HSI Special Agent Wiest. “Our deepest concern is for the victims of these horrible crimes and we hope today’s sentencing can help them continue on the path of recovery.”
According to court documents and other court records, from 2002 through 2015, the three men were members of a child pornography ring referred to as the “Rippernet,” that produced child pornography through “capping.” Capping is a sophisticated method of producing child pornography by tricking victims, in this case teenage boys, into performing sexually explicit acts in front of webcams, and capturing the video to create new child pornography. Court records show that the defendants induced their young victims by creating false online personas of adolescent girls, specifically developed to be sexually explicit and enticing.
Court records show that law enforcement identified Anderson as an individual responsible for producing images and videos of child pornography, which he traded with others via a peer-to-peer file trading software. According to court records, a forensic analysis of devices seized from Anderson’s home revealed that the defendant possessed more than 17,000 videos and 10,000 images of files depicting the abuse of children. Court records also show that Anderson was the “archivist” of the ring, responsible for collecting and organizing the child pornography in files, and distributing the images and videos to his capper associates.
Court records show that Anderson learned the capping method from Heineman, who was the most prolific producer of child pornography using the capping method. According to court records, Heineman taught Anderson “the art of capping.” In turn, Anderson taught the method to other group members, including Klein. Court records indicate that the combined number of known production victims among the three defendants is over 2,290.
Anderson pleaded guilty to one count of production and one count of possession of child pornography. Heineman and Klein each pleaded guilty to one count of conspiracy to sexually exploit a child. All three defendants are currently in the custody of the United States Marshal pending their designation to a federal Bureau of Prisons facility. All federal sentences are served without the possibility of parole.
In making today’s announcement U.S. Attorney Murray thanks HSI for leading the investigation. U.S. Attorney Murray also thanks the Buncombe County Sheriff’s Office for their assistance in this case. The U.S. Attorney’s Office in Asheville prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Cherokee County Man Sentenced to Prison for String of Robberies of Hotels and Businesses Across Three CountiesRead the Press Release
According to filed court documents and court proceedings, between November 20, 2015, and February 10, 2016, McCoy robbed six hotels and businesses in Cherokee, Swain and Jackson counties. According to court records, on November 20, 2015, at approximately 3:40 a.m., McCoy brandished a knife to an employee of the Quality Inn located in Swain County, in Indian Country. McCoy demanded money, and obtained approximately $150 from the desk drawer and $30 from the employee’s wallet. Court records show that McCoy also told the employee, “I’ve hit all these hotels.” Twenty minutes later, on November 20, 2015, at approximately 4:00 a.m., McCoy entered the Baymont Inn, also in Swain County, in Indian Country. McCoy again brandished a knife and demanded money from a hotel employee, who gave McCoy approximately $140 in cash.
On January 26, 2016, at approximately 10:40 p.m., McCoy brandished a knife and demanded money from a clerk at the Fairfield Inn and Suites located in Jackson County, in Indian Country. When the hotel employee attempted to call 911, McCoy grabbed her, threw her in a corner, and cut her hand with the knife causing the employee to sustain injuries. McCoy fled with $225 in cash. Then, on January 30, 2016, at approximately 9:45 p.m., McCoy brandished a knife and demanded money from an employee at Ric’s Smoke Shop in Jackson County, in Indian country. McCoy told the victim to open the cash drawer, and ordered the victim to lay down on the floor. McCoy left the store with $1,724 in cash and a Gatorade drink.
According to court records, on February 9, 2016, at approximately 11:10 a.m., McCoy entered a Dollar General Store in Whitter, N.C., in Jackson County. Court records show that McCoy approached the register with three food items and asked the store clerk about telephone cards. Then, McCoy pulled out a knife and demanded money from the clerk. McCoy fled the store with $442.38 in cash.
A day later, on February 10, 2016, at approximately 3:26 a.m., McCoy and his co-defendant, David James Littlejohn, entered a Microtel Inn located in Bryson City, N.C. A guest of the hotel, identified as “R.E.” was in the lobby. McCoy jumped behind the counter and ordered R.E. to come behind the counter as well. R.E refused. McCoy jumped on the counter, pulled a large fixed knife and went towards R.E., with Littlejohn following behind him. McCoy, holding the knife, asked R.E. multiple times where the woman was that worked the hotel desk. McCoy pointed the knife at R.E. and told R.E. to get on the ground. R.E. laid down on the floor, and McCoy told Littlejohn to get everything from R.E.’s pockets and said if R.E. moved then cut him. Littlejohn took R.E.’s wallet, $45 in cash and other items while McCoy went behind the front desk. A store employee heard the commotion, walked into the lobby and saw R.E. on the floor. Littlejohn grabbed the employee and forced her to the floor, then took from her the key for the cash drawer and gave it to McCoy. McCoy opened the drawer and took $200. After ripping all the phones out of the wall, both McCoy and Littlejohn ran out of the front door.
McCoy previously pleaded guilty to one count of robbery within Indian Country, one count of assault with a dangerous weapon, and two counts of Hobbs Act robbery. Littlejohn was also sentenced today to 70 months in prison, followed by three years of supervised release, and was ordered to pay $1,090 as restitution. Littlejohn pleaded guilty to one count of Hobbs Act robbery.
Both defendants are currently in federal custody and will be transferred into 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 thanks the Cherokee Indian Police Department, the Bryson City Police Department, and the Jackson County Sheriff’s Office for their investigation of the case.
Assistant U.S. Attorney Chris Hess, of the U.S. Attorney’s Office in Charlotte, and Special Assistant U.S. Attorney Justin Eason of the Office of the Tribal Prosecutor for the Eastern Band of Cherokee Indians prosecuted the case.
Appalachian State University to Receive $1.5 Million Distribution Resulting from U.S. Attorney's Office Civil Forfeiture ActionRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney R. Andrew Murray announced that $1,542,442.33 will be distributed to Appalachian State University (ASU) following successful civil forfeiture proceedings against money seized from bank accounts controlled by alleged fraudsters and money launderers who targeted the higher education institution.
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, Charlotte office.
“Today’s announcement is an example of the results we get when we use civil forfeiture laws to swiftly stop crime and provide financial relief to victims of fraud,” said U.S. Attorney Murray. “In this case, the FBI located and seized the stolen funds even before criminal investigative targets had been identified or a criminal case had been filed. Under these circumstances, civil forfeiture is the only area of law that enables law enforcement to swiftly obtain warrants to secure stolen funds, and to prevent the perpetrators of fraud from accessing them. Identifying and seizing ill-gotten gains and returning forfeited funds to victims is a priority for my office. I will use all of the tools at my disposal to make victims whole, and civil asset forfeiture is an invaluable tool in that arsenal.”
According to allegations contained in the civil forfeiture complaint, beginning in or around December 2016, one or more alleged fraudsters convinced ASU staff to forward over $1.9 million to one or more companies operated by them. According to court records, the fraudsters posed in emails as a legitimate construction company building ASU’s new health sciences facility. After receiving the funds, the alleged fraudsters used numerous bank wire transfers to launder the money among various companies.
Court records indicate that, upon discovery of the fraud, ASU notified the FBI and fully assisted in the investigation. The FBI ultimately located $1,542,442.33 of the money dispersed in multiple bank accounts and obtained forfeiture seizure warrants for it, preventing the wrongdoers from absconding with ASU’s funds. Following that, the U.S. Attorney’s Office filed a civil complaint in federal court. Upon conclusion of the civil forfeiture case, the Department of Justice’s Money Laundering and Asset Recovery Section authorized distribution of all forfeited funds to ASU.
In making today’s announcement, U.S. Attorney Murray commended the work of the FBI. U.S. Attorney Murray also thanks ASU officials for their prompt efforts to notify law enforcement of the fraud.
Assistant United States Attorney Benjamin Bain-Creed of the United States Attorney’s Office in Charlotte handled the proceedings. (Docket No. 5:17-cv-81)
Criminal and Civil Actions Collections in Fiscal Year 2017
In Fiscal Year 2017, the Western District of North Carolina (WDNC) collected $23,476,979.90 in criminal and civil actions. Of this amount, $4,719,016.01 was collected in criminal actions and $18,757,963.89 was collected in civil actions. Additionally, WDNC worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $7,216,680.36 in cases pursued jointly with these offices. Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2017.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Justice Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The U.S. Attorney’s Office, working with partner agencies and divisions, also collected $2,768,013 in asset forfeiture actions in FY 2017. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
“Every day, federal prosecutors and staff in the U.S. Attorney’s Office work hard to protect the citizens of the Western District of North Carolina and to ensure that criminals do not profit from their illegal activities,” said U.S. Attorney Murray. “Their diligent efforts enable us to achieve justice, recover taxpayer dollars, secure restitution for victims of federal crimes, and protect the public from fraud, waste and abuse.”