Western District of North Carolina
Press releases recorded for this federal judicial district.
Wilkes Co. Man Sentenced to A 20-Year Prison Term for Possessing and Producing Child PornographyRead the Press Release
STATESVILLE, N.C. B U.S. District Judge Richard L. Voorhees sentenced yesterday Tony Luke Brewer, 25, of Hays, N.C. to 20 years in prison on charges of possession and production of child pornography, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Voorhees also ordered the defendant to serve a lifetime of supervised release and to register as a sex offender upon release from prison.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Rose in making today’s announcement.
“Today, we’ve removed a monster from the folds of our society. Brewer’s massive child pornography collection contained images and videos depicting extreme and violent sexual abuse against children, some of whom were infants, which he shared online with other pedophiles,” said U.S. Attorney Rose. “But Brewer did not stop there. He solicited young victims online and enticed them to engage in sexually explicit conduct, which he captured and stored on his computer. Brewer is a predator who belongs behind bars, where he can no longer victimize another young child.”
“Luke Brewer tried to conceal the evidence of his twisted and disturbing criminal activities online. When the safety of our children is at stake, the FBI will not stop until we uncover those vile offenders who seek to do harm with their demented behaviors,” said Special Agent in Charge Strong.
According to filed documents and statements made in court, Brewer was a member of, or attempted to become a member of, multiple Internet websites through which he and others posted thousands of messages containing images of sexual exploitation involving pre-pubescent children. The websites’ users employed advanced technological means in order to undermine law enforcement’s attempts to identify them.
According to court records, from at least May 2012, Brewer registered with these websites and uploaded images of child pornography or chatted online with other users. Court records show that on one such website, Brewer described himself on his user profile as “a young pedo” who “loves meeting new pedos.” On September 24, 2014, the FBI executed a search warrant at Brewer’s residence, seizing his laptop computers and other storage media. According to court records, forensic examination of the seized items revealed that Brewer possessed thousands of images and videos of child pornography, including material involving infants and prepubescent minors engaging in sadistic and masochistic or other violent conduct.
Court records indicate that, in addition to possessing child pornography, Brewer had engaged in multiple chats online with minor victims from different states. According to court records, Brewer knew the victims were underage and induced the victims to engage in sexually explicit conduct, which he captured and stored on his computer.
Brewer is currently in custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The FBI investigated the case. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
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
Justice Department and North Carolina Sue Carolinas Healthcare System to Eliminate Unlawful Steering RestrictionsRead the Press Release
CHARLOTTE, N.C. – The Department of Justice today filed a civil antitrust lawsuit against Carolinas HealthCare System (CHS), challenging CHS’s practice of imposing steering restrictions in its contracts with commercial health insurers in the Charlotte, North Carolina, area.
The Antitrust Division and the state of North Carolina filed the lawsuit in the U.S. District Court for the Western District of North Carolina. The complaint alleges that CHS, with its approximately 50 percent share in the sale of acute inpatient hospital services to health insurers in the Charlotte area, has used its market power to require steering restrictions in its contracts with every major insurer. These provisions have prevented insurers from, among other things, introducing health plans that encourage patients to use medical providers that offer lower priced, higher-quality services.
“Americans should be able to choose a healthcare provider that gives them and their families the most cost-effective and appropriate treatment,” said Principal Deputy Assistant Attorney General Renata B. Hesse, head of the Justice Department’s Antitrust Division. “This lawsuit will stop a dominant hospital from using its market power to undermine its smaller competitors’ efforts to attract patients by competing on the price and quality of their services.”
“Today’s enforcement action seeks to ensure that consumers in the Charlotte area will benefit by identifying the more cost-efficient, quality providers when making the critically important decision of selecting a doctor or hospital,” said U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. “In these times of escalating health care costs, vigilant antitrust enforcement in local healthcare markets such as the Charlotte area is essential to protecting the interests of consumers.”
CHS is the largest healthcare system in North Carolina and one of the largest not-for-profit healthcare systems in the United States.In 2014, CHS had net operating revenue of about $8.7 billion.
Man Charged with Using an Improvised Explosive Device to Damage A BuildingRead the Press Release
ASHEVILLE, N.C. – United States Attorney Jill Westmoreland Rose announced today that a federal grand jury sitting in Asheville has returned a criminal indictment against Larry Dean Bowlsby, 49, for detonating an improvised explosive device inside a Walmart store in 2007. Bowlsby was first charged by a criminal complaint filed in the Western District of North Carolina on April 15, 2016, and was arrested in Missouri on May 24, 2016.
C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Jim Schandevel, Special Agent in Charge of the North Carolina State Bureau of Investigation’s Western District Office; Chief Davis Woodard of the Sylva Police Department and Sheriff Chip Hall of the Jackson County Sheriff’s Office join U.S. Attorney Rose in making today’s announcement.
According to allegations contained in the charging documents, on September 26, 2007, Bowlsby detonated an improvised explosive device, namely a pipe bomb, inside a Walmart store located in Sylva, N.C. Court documents allege that Bowlsby placed the pipe bomb in a shopping cart after entering the store.When the pipe bomb was set off it was located in the sporting goods section next to small camping propane cylinders.Court documents allege that a fingerprint recovered from the shopping cart used by Bowlsby was submitted at the time to a nationwide database, however a match was not returned.In January 2016, the fingerprint was resubmitted, this time returning a positive match to the defendant stemming from a 2009 conviction in Colorado.
“As alleged in the indictment, Bowlsby detonated a pipe bomb inside a busy store, injuring at least one person and putting at risk the lives of many others. Law enforcement have continued to investigate this case and their persistence has paid off. Bowlsby will be appearing in federal court in this district to be prosecuted for a crime he committed nearly nine years ago,” said U.S. Attorney Rose.
“Detonating a pipe bomb in a Walmart in the middle of the day is an extremely cowardly act of violence. We were very fortunate that there were no serious injuries. ATF will continue to work closely with our law-enforcement partners to prosecute those who commit heinous crimes like this,” said Special Agent in Charge Hyman.
“Today’s indictment signifies how important it is for law enforcement to remain diligent in its search for the truth, regardless of the hurdles encountered,” said Special Agent in Charge Schandevel.
Bowlby is currently in federal custody and will be transferred to appear in federal court in Asheville. He is charged with one count of use of an explosive or incendiary instrument to damage or destroy a building or business entity involved in interstate commerce, which carries a maximum prison term of up to 40 years, and one count of unlawful use of fire and an explosive to commit a felony, which carries a mandatory minimum prison term of 10 years, consecutive to any other term imposed.
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 Rose praised the work the ATF, SBI, the Sylva Police Department and the Jackson County Sheriff’s Office which handled the investigation.
Assistant U.S. Attorney Don Gast of the U.S. Attorney’s Office in Asheville is prosecuting the case.
Federal Judge Hands Down Lengthy Prison Terms to Three Men Involved in A Crack Cocaine ConspiracyRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Richard L. Voorhees handed down yesterday lengthy prison terms to three individuals involved in a crack cocaine conspiracy, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. John Fitzgerald “Pumpy” Michaux, 31, of Hickory, N.C., and Terron Juandre “Wordle” Michaux, 29, of Lenoir, N.C. were each sentenced to 168 months in prison followed by five years of supervised release. Jeremy “Tank” Dula, 28, of Lenoir, was sentenced to 80 months in prison and four years of supervised release for his role in the conspiracy.
According to court records and yesterday’s sentencing proceedings, beginning in 2013 and through September 2015 in Caldwell County and elsewhere, the three defendants engaged in a drug trafficking conspiracy involving more than five kilograms of crack cocaine. Court records show that over the course of the investigation, law enforcement seized approximately 400 grams of crack cocaine, three firearms, and approximately $50,000. Each defendant pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute crack cocaine.
In making today’s announcement, U.S. Attorney Rose thanked the FBI, Homeland Security Investigations, the North Carolina State Bureau of Investigation, the Lenoir Police Department, the Caldwell County Sheriff’s Office, the Hickory Police Department, the Mooresville Police Department, the Lincoln County Sheriff’s Office, the Alexander County Sheriff’s Office and the Iredell County Sheriff’s Office for investigating the case.
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In a separate case, Judge Voorhees sentenced yesterday Christopher Rios Rodriguez, 27, of Newton, N.C. to 136 months in prison and three years of supervised release on charges of possession with intent to distribute methamphetamine. According to court records and court proceedings, on August 17, 2015, law enforcement conducted a traffic stop of Rodriguez’s vehicle and recovered 8,900 grams (approximately 10,000 dosage units) of 97% pure methamphetamine. Subsequent investigation revealed that Rodriguez was a source of supply for multiple kilograms of both methamphetamine and cocaine. Rodriguez pleaded guilty to one count of possession with intent to distribute methamphetamine on March 1, 2016.
This case was investigated by Homeland Security Investigations, the North Carolina State Bureau of Investigation, the North Carolina State Highway Patrol, the Hickory Police Department and the Burke County Drug Task Force.
Assistant United States Attorney Steven Kaufman of the U.S. Attorney’s Office in Charlotte prosecuted the cases.
Burke Co. Man Handed Down 21-Year Sentence for Producing Child PornographyRead the Press Release
ASHEVILLE, N.C. B Jesse Brison Ollis, aka “Jesse Lequire,” 27, of Valdese, N.C., has been handed down a 21-year prison sentence by a federal judge for producing child pornography, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger presided over today’s hearing, ordering the defendant to serve a lifetime of supervised release and to register as a sex offender upon completion of his prison term.
Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Janie Sutton, Special Agent in Charge Alan K. Flora of SBI Computer Crimes Unit and Commander of the North Carolina Internet Crimes Against Children Task Force join U.S. Attorney Rose in making today’s announcement.
According to today’s sentencing hearing and filed court documents, on November 26, 2014, law enforcement received information from Australian authorities that an Australian 14 year old female (victim one) had been engaging in sexually explicit communications over the Internet with an individual later identified as Ollis. According to court documents, victim one informed law enforcement that she had met Ollis in 2011 online when she was 12 years old and she believed him to be 17 years old. A forensic examination of electronic devices seized from Ollis’ residence revealed that Ollis had been communicating with victim one online and had “blogged,” or posted, child pornography images on the Internet. Further forensic investigation revealed that Ollis had additional sexually explicit images and videos of a second minor female (victim two). Court records indicate that law enforcement identified victim two as a minor living in Western North Carolina who Ollis had befriended.
“Ollis is every parent’s worst nightmare coming to life,” said U.S. Attorney Rose. “He targeted impressionable young children and used the Internet in the worst possible way: to share sexually explicit images of victimized underage girls. While no two child pornography cases involving online communications are the same, each one is a stark reminder that the Internet can be used for good and evil. The safety of our children rests upon our vigilant efforts to ensure they are protected from online predators lurking and waiting for an opportunity to strike,” Rose added.
“This case serves as an example to anyone who is involved in the production of child pornography…regardless of where in the world the investigation may lead or how much time may have passed, HSI is committed to holding them accountable,” said Special Agent in Charge Annan. “The child victims of these illegal images often suffer physical and psychological scars for many years, and HSI is committed to aggressively targeting those who engage in child sexual exploitation.”
“Men like Ollis are the reason that the ICAC Task Force exists. The SBI values all of our law enforcement partners and this case signifies the great work that can be accomplished when agencies work together,” said Special Agent in Charge Flora.
In handing down today’s sentence, Judge Reidinger said that harm to victims in cases like these is one of the reasons we have such long sentences.
Ollis is currently in custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by HSI and SBI, which are members of the North Carolina Internet Crimes Against Children Task Force. 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
Whittier, N.C. Man Sentenced to More Than 12 Years in Prison on Child Pornography ChargesRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today John Michael Awtrey, 56, of Whittier, N.C., to 150 months in prison on child pornography charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Awtrey was also sentenced to a lifetime of supervised release and was ordered to register as a sex offender.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas, Sheriff Curtis A. Cochran of the Swain County Sheriff’s Office and Sheriff Derrick Palmer of the Cherokee County Sheriff’s Office.
According to filed documents and statements made in court, on or about February 24, 2013, law enforcement became aware that an individual, later identified as Awtrey, was accessing child pornography online using the Internet profile of “iamnice.” Law enforcement executed a search warrant at Awtrey’s residence and seized approximately one dozen computers and various electronic devises and storage media. According to court records, forensic analysis of the seized devices and equipment revealed that Awtrey possessed hundreds of thousands of images and videos involving minors engaging in sexually explicit conduct, including material involving prepubescent minors and sadistic and masochistic conduct. Court records indicate that Awtrey used the Internet to send some of those images to other individuals and to receive child pornography.
In August 2015, following a bench trial, Judge Reidinger found Awtrey guilty of one count of distribution, one count of receipt and one count of possession of child pornography.
Awtrey is currently in custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by HIS, the Swain County Sheriff’s Office and the Cherokee County Sheriff’s Office. 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.
Tennessee Man Sentenced to Prison on Perjury Charges for Falsely Impersonating His BrotherRead the Press Release
ASHEVILLE, N.C. - Today, U.S. District Judge Martin Reidinger sentenced Robby Lynn Hawkins, 36, of Rockwood, Tennessee to 15 months in prison on perjury charges for falsely impersonating his brother in court proceedings, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also ordered Robby Hawkins to serve two years under court supervision after he is released from prison.
U.S. Attorney Rose is joined in making today’s announcement by Steve Kloster, Chief Ranger of the Great Smoky Mountains National Park.
According to filed documents and statements made in court, on November 28, 2015, Park Rangers conducted a traffic stop of the vehicle Robby Hawkins was driving within the Great Smoky Mountains National Park. The vehicle had been reported as stolen in Jackson City, Tennessee. Robby Hawkins told law enforcement that his name was “Ricky Lynn Hawkins,” which is his brother’s name, and gave his brother’s date of birth. Subsequently, Robby Hawkins was arrested for driving with a revoked license and possession of a stolen vehicle.
According to court records, during court proceedings that followed, Robby Hawkins was addressed by the court as “Ricky Hawkins,” and signed court documents using his brother’s name. Court records show that, under his brother’s name, Robby Hawkins was then sentenced to 15 days in prison after pleading guilty to a petty offense charge of possession of a stolen vehicle. According to court records, law enforcement discovered soon thereafter that “Ricky Hawkins” was incarcerated in Indiana, and that Robby Hawkins had falsely impersonated him in court proceedings. Robby Hawkins was then charged with one count of perjury in a court document. He pleaded guilty to the charge in February 2016.
The investigation was handled by the Rangers of the .The prosecution was handled by the U.S. Attorney’s Office in Asheville.
Sixteen Charged in Drug Conspiracy Operating in Buncombe and Rutherford CountiesRead the Press Release
ASHEVILLE, N.C. – United States Attorney Jill Westmoreland Rose announced today that 16 individuals are facing multiple federal drug charges for their involvement in a drug conspiracy. A criminal indictment was returned on May 18, 2016, and was unsealed today in federal court. Law enforcement arrested 11 of the 16 charged on Tuesday during an early morning round-up. Of the remaining five defendants, one is currently in state custody on state charges and four others have not been arrested yet.
According to allegations contained in the criminal indictment, from on or about September 2014, to about December 2015, the defendants operated as a drug conspiracy responsible for trafficking crack cocaine in and around Buncombe and Rutherford Counties and surrounding areas.The 16 defendants named in the 91-count indictment are each charged with conspiracy to distribute crack cocaine and related drug offenses.They are:
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Marquise Brown, 27, of Asheville, NC. (not arrested)
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Carlos Byrd, 34, of Asheville, NC. (arrested)
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Christopher Drayton, 27, of Black Mountain, NC. (arrested)
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Charles Eric Freeman, 50, of Rutherfordton, NC. (arrested)
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Tyquise Deandre Griffin, 22, of Asheville, NC. (arrested)
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Aaron Jones, 35, of Asheville, NC. (in state custody)
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Richard Kimble, 44, of Asheville, NC. (arrested)
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Kevin Lamont Logan, 42, of Rutherfordton, NC. (arrested)
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Roderick Martin, 34, of Asheville, NC. (not arrested)
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Caliph Devon Mayo, 27, of Canton, NC. (arrested)
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Tyler McAfee, Age, 23, of Asheville, NC. (arrested)
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Michael Tyrone Moore, 27, of Asheville, NC. (not arrested)
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Levar William Morris, 36, of Asheville, NC. (arrested)
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Quinton Javon Mosley, 33, of Rutherfordton, NC. (not arrested)
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Danyail Antonio Pea, 32, of Asheville, NC. (arrested)
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Reco Lamar Mosley, 33, of Asheville, NC. (arrested)
(See chart below for federal charges and penalties for each defendant).
“Today’s arrests are the culmination of a 15-month long investigation conducted by our federal and local law enforcement partners.The defendants charged in the indictment, some of whom have alleged gang ties, operated a drug conspiracy distributing crack cocaine, an illegal substance known for its incredibly high addiction rates and severe, even deadly, effects.The arrest of these individuals will bring immediate relief to neighborhoods affected by their drug trafficking activities and drug-fueled violence. We will continue to work alongside our law enforcement partners to conduct targeted investigations and stem the flow of drugs in our communities,” said U.S. Attorney Rose.
Special Agent in Charge Daniel R. Salter of the Drug Enforcement Administration (DEA) stated, “Today is a victory not only for the multitude of law enforcement agencies who dismantled this organization, but for the citizens of Buncombe and Rutherford Counties. Now that these criminals have been removed from the streets, the poisonous drugs that they would have sold will never reach the consumer. This effort would not have been successful without the high level of cooperation between our federal, state and local law enforcement counterparts.”
“ATF will continue to work closely with our federal, state and local law enforcement partners to focus on reducing violent crime in our communities by targeting drug traffickers and the associated violent criminal activity,” said C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.
“The strong working relationship between the Rutherford County Sheriff's Office, DEA and the U.S. Attorney's Office is a beneficial force multiplier. Many times, narcotics investigations leave county lines and even cross into other states. Having the ability to reach out and further an investigation with federal assistance is the only answer to cases like these. The results of this investigation will have positive effects in our county for a long time,” said Sheriff Chris Francis of the Rutherford County Sheriff’s Office.
Those arrested this week will appear in federal court today before U.S. Magistrate Judge Dennis Howell. Arrest warrants have been issued for Marquise Brown, Reco Lamar Mosely, Michael Tyrone Moore and Roderick Martin. Aaron Jones is currently in state custody and will appear in federal court on the federal charges at a later date.
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 Rose praised the outstanding efforts of special agents of the Drug Enforcement Administration (DEA) under the direction of Special Agent in Charge Daniel R. Salter; the Internal Revenue Service - Criminal Investigation (IRS-CI) under the direction of Special Agent in Charge Thomas J. Holloman III; 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 C.J. Hyman; deputies of the Buncombe County Sheriff’s Office under the direction of Sheriff Van Duncan and the Rutherford County Sheriff’s Office under the direction of Sheriff Chris Francis; and officers of the Asheville Police Department under the direction of Chief Tammy Hooper for their work in investigating this case. U.S. Attorney Rose also noted the invaluable assistance provided by the Columbus Police Department.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville is 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.
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Methamphetamine Trafficker Sentenced to 12.5 Years in PrisonRead the Press Release
ASHEVILLE, N.C. – Joel Elias Gonzalez, 53, formerly of Franklin, N.C. was sentenced yesterday to 151 months in prison followed by five years of supervised release for trafficking large quantities of crystal methamphetamine, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Gonzalez pleaded guilty in February 2016 to one count of distribution of methamphetamine.
U.S. Attorney Rose 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; C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Sheriff Robert L. Holland of the Macon County Sheriff’s Office; and Sheriff Chip Hall of the Jackson County Sheriff’s Office.
According to filed court documents and statements made in court, from in or about June of 2015, Gonzalez was responsible for trafficking large amounts of crystal methamphetamine (crystal meth) in the Franklin, N.C. area and the Rabun County, Georgia area. Court records indicate that Gonzalez purchased the crystal meth from a source of supply in and around Atlanta, Georgia. According to court records, Gonzalez and was responsible for trafficking approximately 1.3 kilograms of crystal meth.
Gonzalez is in federal custody and will be transferred to custody of the Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Rose noted that multiple agencies worked together to bring this prolific crystal methamphetamine trafficker to justice and thanked the DEA, the ATF, the Macon County Sheriff’s Office, the Jackson County’s Sheriff’s Office for investigating this case.
Assistant United States Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville handled the prosecution.
Swain County Woman Sentenced to 10 Years for Killing Her HusbandRead the Press Release
ASHEVILLE, N.C. – Pattie Sue Bradley, 43, of Cherokee, N.C. and an enrolled member of the Eastern Band of Cherokee Indians, was sentenced today to 120 months in prison for killing her husband, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also sentenced Bradley to three years of supervised release following her prison term.
U.S. Attorney Rose 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 James Dike Sneed of the Cherokee Indian Police Department (CIPD).
According to the information to which Bradley pleaded guilty, other documents filed in this case and statements made in court, on or about January 13, 2015, in Swain County, in Indian Country, that is within the boundaries of the Eastern Band of Cherokee Indians reservation, Bradley stabbed and killed her husband, Henry Bradley, also an Indian. Court records show that CIPD arrived at the Bradleys’ residence in response to a 911 call. When the responding officer asked Pattie Bradley about what had occurred, Bradley told him that another individual had tried to break into the house and she had cut him with a knife.
According to court records, the officer then noticed that the victim was sitting and passed out on the couch inside the couple’s home. The officer also observed that the victim’s hands were covered with blood. Pattie Bradley stated that the victim had a cut on his hand but when emergency technicians arrived at the scene they determined that the victim had actually been stabbed once in the abdomen. The victim was transported to the hospital, where he later died. On January 14, 2015, CIPD interviewed Pattie Bradley who told the officers that on the night of the incident she and the victim had been drinking and arguing, and she admitted to stabbing the victim over the course of the argument.
Bradley pleaded guilty on October 23, 2015 to one count of assault with intent to commit murder. She is currently in custody and upon designation of a federal facility she will be transferred to the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.
The FBI and CIPD investigated the case. Assistant U.S. Attorney John Pritchard prosecuted the case.
Marion, N.C. Man Sentenced to Prison for Passport FraudRead the Press Release
ASHEVILLE, N.C. – James Timothy Wilson, 66, of Marion, N.C. was sentenced today to 45 months in prison on passport fraud and aggravated identity theft charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Wilson was also ordered to serve two years under court supervision after he is released from prison.
Thomas Haycraft, Special Agent in Charge of the Washington Field Office, U.S. Department of State, Diplomatic Security Service and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) join U.S. Attorney Rose in making today’s announcement.
According to filed plea documents and today’s sentencing hearing, in June 2009, Wilson stole the identities of two individuals who were employed by Henderson-based Quality Rubber Manufacturing Company Inc. (QRMC), a company previously owned by Wilson. Using the stolen information, Wilson obtained North Carolina Driver’s Licenses and birth certificates in each of the victim’s name, which he then used as proof of identity to apply for and fraudulently obtain U.S. passports. According to court records, Wilson used the fraudulent passports to fly internationally, including to Colombia and Mexico.
According to court records, Wilson accessed and used without permission a third individual’s passport to fly internationally. The victim, who also worked at QRMC, discovered his passport was missing after he had left it on his desk at work. Later, the victim discovered his passport had been returned, and noticed the pages were stamped, indicating international travel. Wilson had used that victim’s passport to fly to Colombia and to Costa Rica.
In announcing today’s sentence, U.S. District Judge Martin Reidinger said that Wilson engaged “in a pattern of dishonesty,” and ordered Wilson to pay $3,000 fine in addition to the prison term imposed.
Wilson pleaded guilty in February 2016 to three counts of making a false statement on an application and two counts of aggravated identity theft.
The investigation was handled by the U.S. Department of State’s Diplomatic Security Service and IRS-CI.
Assistant U.S. Attorney Don Gast, of the U.S. Attorney’s Office in Asheville, is prosecuting the case.
Four Assistant United States Attorneys Honored by the Charlotte-Mecklenburg Police Department at Annual “Chief's Awards ” CeremonyRead the Press Release
CHARLOTTE, N.C. – Four Assistant United States Attorneys were honored today by the Charlotte-Mecklenburg Police Department at the annual “Chief’s Awards” ceremony, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. The four were presented with the “Chief’s Award for Excellence in Policing” for the federal prosecution of significant criminal cases. The ceremony was held at CMPD’s Police and Fire Training Academy.
“I congratulate our four Assistant United States Attorneys for receiving this special recognition today,” said U.S. Attorney Rose. “They are excellent prosecutors dedicated to the pursuit of justice and I want to thank each one for serving our district and the Department of Justice with distinction and integrity both in and out of the court room.”
Assistant U.S. Attorneys Robert Gleason, Jennifer Dillon, Elizabeth Greene and William Miller were the four prosecutors recognized for their respective work on three federal prosecutions. Assistant U.S. Attorneys Greene and Miller received the award for the ongoing prosecution of 37 MS-13 gang members, four of whom were convicted at trial in April 2016.
Assistant U.S. Attorneys Gleason and Dillon were recognized for their prosecution of Fathia Davis, who was sentenced in February 2016 to 10 years in prison in connection with a murder-for-hire plot against her ex-husband. Ms. Dillon also received an award for the prosecution of the “Carlton-Wilson Group,” involving four defendants responsible for multiple break-ins, burglaries and illegal gun sales in the Charlotte area. The defendants, Tory Vazquez, Brendan Penn, Dominic McDonald and Carlton Wilson, were sentenced to prison terms of up to 206 months for their crimes.
The United States Attorney's Office is responsible for representing the federal government in virtually all litigation involving the United States in the Western District of North Carolina. This includes all criminal prosecutions for violations of federal law, civil lawsuits by and against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Western District of North Carolina extends over 13,563.9 square miles and includes the state’s 32 westernmost counties.
Brevard, N.C. Man Sentenced to 17 Years in Prison on Child Pornography ChargesRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Martin Reidinger sentenced today Robert Joseph Lamb, 30, of Brevard, N.C., to 207 months in prison on child pornography charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Lamb, a/k/a “Ezra,” was also sentenced to a lifetime of supervised release and was ordered to register as a sex offender.
U.S. Attorney Rose is joined in making today’s announcement by Special Agent in Charge Alan K. Flora of SBI Computer Crimes Unit and Commander of the North Carolina Internet Crimes Against Children Task Force, Sheriff David Mahoney of the Transylvania County Sheriff’s Office and Chief Tammy Hooper of the Asheville Police Department.
According to filed documents and statements made in court, on or about January 7, 2014, the Transylvania County Sheriff’s Office received a tip that Lamb possessed images and videos of child pornography. A deputy with the sheriff’s office acting in an undercover capacity first contacted Lamb via the Internet. In a subsequent phone conversation, Lamb told the officer that he possessed child pornography and the two arranged to meet after the undercover officer expressed an interest in viewing Lamb’s child pornography collection. According to court records, Lamb met the undercover officer and the two went to Lamb’s residence, where Lamb proceeded to show the officer numerous images and videos of child pornography.
Court records show that Lamb had an extensive collection of child pornography, some of which depicted children under the age of five being sexually abused by adults. According to court records, over the course of the meeting, Lamb expressed an interest in engaging in sexual contact with young children. Lamb discussed with the undercover officer the idea of kidnapping, sexually abusing and murdering a child. According to court records, when the undercover officer told Lamb that he had a six-year-old daughter, Lamb offered to pay the officer to engage in sexual contact with her, and gave the officer $100 as “down payment.”
On October 31, 2014, law enforcement executed a search warrant at Lamb’s residence. A forensic analysis of devices seized from Lamb’s residence revealed that Lamb possessed an extensive collection of child pornography, consisting of 816 images and 72 videos. According to court records, Lamb had also distributed at least 314 times some of his child pornography images and videos via video and photo sharing applications and the Internet.
“Lamb had a sick appetite for watching horrific videos depicting the sexual abuse of very young children. His extensive child pornography collection included images that were among the worst ever described to the court. Thanks to the excellent investigative efforts of our law enforcement partners we have secured a long prison sentence against Lamb and have successfully removed this dangerous child predator from our community,” said U.S. Attorney Rose.
“Men like Lamb are the reason that the ICAC Task Force exists. Lamb epitomizes the type of dangerous predator we hunt. Even though we deal with this subject matter every day, the Lamb case was particularly horrific to those of us involved. We learned on the morning of Halloween that Lamb was fantasizing about kidnapping, raping and murdering a child. Thanks to the quick response by our partners in the ICAC Task Force, we were able to obtain and execute a search warrant at the home that afternoon, a short time before the first trick-or-treaters appeared on the streets of Brevard. We are very grateful that this case has resolved in such a way that no children were harmed, and a true predator has been removed from that community,” said Special Agent in Charge Flora.
Lamb pleaded guilty in October 2015 to one count of transportation of child pornography and one count of possession of child pornography. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by the SBI, the Transylvania Sheriff’s Office and the Asheville Police Department. These agencies are all members of the North Carolina Internet Crimes Against Children Task Force. 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.
The U.S. Attorney's Office for the Western District of North Carolina Honors and Remembers Fallen Law Enforcement Officers in Observance of 2016 "National Police Week"Read the Press Release
CHARLOTTE, N.C. – This week, communities across the United States gather during National Police Week to remember law enforcement officers who made the ultimate sacrifice in the line of duty to share their stories of courage and sacrifice and to honor their memory.
“Police week is a time of remembrance of fallen officers who gave their lives to protect ours,” said Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. “Together with our fallen heroes’ families, friends and comrades we come together to grieve for their tragic loss, to celebrate their lives and to carry on the legacy they left behind.”
In 1962, President Kennedy proclaimed May 15 as National Peace Officers Memorial Day and the calendar week in which May 15 falls as “National Police Week.” Established by a joint resolution of Congress in 1962, National Police Week pays special recognition to those law enforcement officers who have lost their lives in the line of duty for the safety and protection of others.
This year, the names of 252 U.S. law enforcement officers who have died in the line of duty will be added to the National Law Enforcement Officers Memorial in Washington, D.C., including the names of 123 officers who made the ultimate sacrifice during 2015, and 129 officers who died earlier in history but whose sacrifice had not been previously documented. With the addition of the 252 names this year, a total of 20,789 officers’ names are engraved on the Memorial. The names represent fallen law enforcement officers from all 50 states, the District of Columbia, U.S. territories, federal law enforcement, and military police agencies.
Among those added this year will be:
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Anthony E. Lossiah, of the Cherokee Indian Police Department, who died in October 2015.
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Robert James Bowling, of the North Carolina DMV – License & Theft Bureau, who died in May 2015.
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Keith Decarlo Smith, of the North Carolina Dept. of Public Safety, who died in December 2012.
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John William Knapp, Jr., of the Boone Police Department, who died in March 1999.
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Jesse James Styers, of the Forsyth County Sheriff’s Office, who died in January 1935.
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Jack William Sykes, Wilson Police Department, who died in November 1922.
U.S. Attorney Rose noted that along with remembering the officers who made the ultimate sacrifice, “Police Week is an opportunity to honor and recognize all law enforcement officers in our communities, who bravely stand on the front lines each day. These officers are part of a long line of courageous men and women who have taken an oath to protect our neighborhoods, our homes and our loved ones from harm. I am thankful for their service, their courage and their willingness to answer the ultimate call of duty.”
There are approximately 900,000 law enforcement officers currently serving in communities across the United States. Each year, nearly 60,000 assaults against law enforcement officers are reported, resulting in approximately 16,000 injuries.
The names of all 252 fallen officers nationwide were formally dedicated on the National Law Enforcement Officers Memorial during the 28th Annual Candlelight Vigil held at the National Mall on Friday, May 13, 2016.
The 35th Annual National Peach Officers’ Memorial Service was held on Sunday, May 15, 2016, in Washington, D.C., and Deputy Attorney General Sally Q. Yates delivered the keynote address.
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U.S. Attorney Announces Winners of the First Annual “Do the Write Thing Challenge" in AshevilleRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Jill Westmoreland Rose announced the two essay contest winners of the First Annual “Do the Write Thing Challenge” (DtWT) during an awards ceremony held this evening at The Crest Center in Asheville. This is the first year Buncombe County Schools and Asheville City Schools have participated in the writing challenge.
The “Do the Write Thing Challenge” is a program of the National Campaign to Stop Violence. Each year, participating 6th, 7th and 8th grade students are challenged to examine and write about the impact of youth violence in their lives, to come up with solutions and ways to address and change the culture of violence, and to make a personal commitment to stand against violence.
A total of 341 essays from both school districts were submitted for consideration. The essays of twelve students were selected and the finalists were honored at this evening’s ceremony. Rontae Harper, a 6th grader with Asheville City Schools and Jordan Gillespie a 7th grader with Buncombe County Schools, were announced as this year’s winners of the DtWT Challenge.
As DtWT National Ambassadors, Rontae and Jordan, their parents/guardians and the teachers who submitted their essays will be invited to participate in the “Do the Write Thing Challenge National Recognition Week” in Washington, D.C. During this all-expense-paid trip, the students will have an opportunity to meet their elected representatives, visit national monuments and have their works placed in the Library of Congress.
Speaking at today’s event, U.S. Attorney Rose congratulated the two winners and the finalists for their accomplishments. She also thanked all the participants of the writing contest, noting that all the students who submitted essays have taken an important first step against violence.
“One of the priorities of the Department of Justice is to reduce violent crime. Those of us in law enforcement, whether state, local or federal, acknowledge that prevention is crucial in reducing violent crime in our neighborhoods. Community involvement and community commitment are critical and the voices and ideas of our youth in these preventive efforts must be encouraged. ‘Do the Write Thing’ does just that and the U.S. Attorney’s Office is thrilled to be a partner in this program.” said U.S. Attorney Rose who chairs the DtWT committee.
U.S. Attorney Rose also thanked and recognized the Asheville City Schools, the Buncombe City Schools, the Asheville Police Department, the Buncombe County Sheriff’s Office, the Asheville Housing Authority and the community organization Changing Together for partnering with the U.S. Attorney’s Office to form the committee.
For more information on the National “Do the Write Thing Challenge” program please visit http://www.dtwt.org.
Patient Care Coordinator Who Defrauded A Charity Pleads Guilty to Wire FraudRead the Press Release
CHARLOTTE, N.C. – A South Carolina woman appeared in federal court today and pleaded guilty to one count of wire fraud for defrauding a charitable organization providing prescription cost assistance to low-income individuals, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Nakeria Rougier Hanson, 31, of Rock Hill, S.C. entered her guilty plea before U.S. Magistrate Judge David Keesler.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to filed court documents and today’s plea hearing, from at least December 2014 to in or about July 2015, Hanson engaged in a scheme to defraud Company A, a national charitable organization providing prescription cost assistance to low-income individuals with chronic or life-threatening illnesses of at least $78,000, by fabricating pharmacy benefit claims for non-existent services. According to court records, from in or about July 2014 to in or about July 2015, Hanson was employed as a Patient Case Coordinator by Company B, which administered patient support and other services for various health care benefit companies, including Company A. In her capacity as a Patient Case Coordinator, Hanson processed claims for reimbursement, including claims submitted to Company A.
Hanson admitted in filed documents and in court today that she submitted false and fraudulent applications in the names of her friends and families to Company B in order have those individuals fraudulently approved to receive financial assistance for prescription drug costs from Company A. Hanson also admitted that she submitted the false applications for cost assistance through various methods, including internet, telephone and facsimile to Company B. Hanson further admitted that after the false applications were approved and the individuals enrolled, she fabricated high-cost prescriptions reimbursement claims for those individuals and submitted them to Company B for reimbursement with charitable organization Company A’s funds. Hanson intercepted those claims through her employment at the Company B and caused those claims to be paid to the individuals. In total, Hanson submitted fraudulent enrollment applications and subsequent false prescription claims for at least nine friends or relatives, resulting in fraudulent payments of at least $78,759 to those individuals, who then divided the proceeds with Hanson.
“Hanson stole from a charitable organization providing financial help to individuals suffering with chronic and critical life threatening illnesses and unable to afford costly prescriptions. For some of these individuals, getting that monetary assistance is critical. This prosecution should serve as a deterrent and a reminder that my office will prosecute employees or affiliates of charities who steal from organizations funded by generous individuals donating money to support worthy causes,” said U.S. Attorney Rose.
Hanson was released on bond following today’s plea hearing. The wire fraud charge carries a maximum prison term of 20 years and a $250,000 fine. A sentencing date for Hanson has not been set yet.
The FBI investigated the case. Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Leader and Three Co-Conspirators of Methamphetamine Trafficking Ring Operating in Henderson County Area Are Sentenced to PrisonRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced the leader and three co-conspirators to prison terms ranging from 57 months to 70 months for their involvement in a methamphetamine trafficking ring operating in the Henderson county area, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose 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 Sheriff Charles S. McDonald of the Henderson County Sheriff’s Office.
Judge Cogburn sentenced the defendants as follows:
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Maria Del Ruiz-Zazueta, 45, of Hendersonville to 57 months in prison, followed by three years of supervised release.
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Stephanie Alvarenga, 24, of Hendersonville to 63 months in prison, followed by three years of supervised release.
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Daniel Alfaro, 24, of Laurel Park to 70 months in prison, followed by five years of supervised release.
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Antonio Barbosa, 34, of Hendersonville to 63 months in prison, followed by five years of supervised release.
Judge Cogburn previously sentenced four other conspirators: Nahuan Solano, 27, of Hendersonville, N.C. was sentenced to 63 months in prison followed by five years of supervised release; Eric Lee Garber, 41, of Saluda, N.C. was sentenced to 60 months in prison followed by four years of supervised release; Benjamin Nelson, 31, of Hendersonville, was sentenced to 57 months in prison followed by five years of supervised release; and Allan Collado-Raudez, 23, of Asheville, N.C. was sentenced to 39 months in prison followed by four years of supervised release.
According to filed court documents and today’s sentencing hearing, from about May 2014 to May 2015, the conspirators were involved in a drug trafficking ring, responsible for distributing significant quantities of methamphetamine in Henderson county and surrounding areas. According to court records, Maria Del Ruiz-Zazueta was the leader of the drug ring and was assisted by her daughter, Stephanie Alvarenga, in supplying the methamphetamine to their co-conspirators. Solano and Alfaro were methamphetamine traffickers and acted as runners for Ruiz-Zazueta and Alvarenga. According to court records, the ring’s customers included area methamphetamine traffickers Garber and Nelson. Ruiz-Zazueta and other members of the ring utilized Antonio Barbosa as an alternate source of supply, who was assisted by Collado-Raudez.
Court records show that, on or about May 4, 2015, law enforcement in Oklahoma conducted a traffic stop of the vehicle in which Alvarenga was a passenger. According to court records, Alvarenga and the driver of the vehicle were headed from California to North Carolina. During the traffic stop, law enforcement seized nearly 10 pounds of methamphetamine from a backpack located in the trunk of the car.
The four sentenced today are 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 investigation was handled by the DEA and the Henderson County Sheriff’s Office. Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s office in Asheville is in charge of the prosecution.
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Eight Charged in Drug Conspiracy Operating in Rutherford and Cleveland CountiesRead the Press Release
ASHEVILLE, N.C. – United States Attorney Jill Westmoreland Rose announced that eight individuals are facing multiple federal drug charges for their involvement in a drug conspiracy operating in Rutherford and Cleveland Counties. A criminal indictment was returned on April 21, 2016, and was unsealed today in federal court. Law enforcement arrested yesterday six of the eight charged during an early morning round-up. One defendant was previously in custody and one has not been arrested yet.
C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Sheriff Chris Francis of the Rutherford County Sheriff’s Office and Sheriff Alan Norman of the Cleveland County Sheriff’s Office join U.S. Attorney Rose in making today’s announcement.
According to allegations contained in the criminal indictment, from on or about May 2015 to about January 2016, the defendants operated as a drug conspiracy responsible for trafficking cocaine and crack cocaine in and around Rutherford and Cleveland Counties. Over the course of the investigation law enforcement have seized narcotics and three firearms.
The eight defendants named in the 22-count indictment are each charged with conspiracy to distribute cocaine and crack cocaine and related drug offenses. They are:
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Kevin McArthur Bailey, 37, of Shelby, N.C. (previously in custody)
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James Rollins Glover, Jr., 30, of Spindale, N.C. (arrested)
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Anthony Price Laney, 34, of Forest City, N.C. (arrested)
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Lonnie McDowell, 65, of Shelby, N.C. (arrested)
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Craig Vinshun Mosley, 32, of Forest City, N.C. (not arrested yet)
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Justin Latrey Mosley, 26, of Forest City, N.C. (arrested)
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Vincent G. Mosley, 55, of Forest City, N.C. (arrested)
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Heather Michelle Shehan, 28, of Rutherfordton, N.C. (arrested)
(See chart below for federal charges and penalties for each defendant).
In making today’s announcement, U.S. Attorney Rose said, “The arrests in this case are part of my office’s ongoing effort to combat drug trafficking throughout our district.I want to thank all the law enforcement agencies that participated in this investigation for joining forces in our fight against drug distribution and the violence that comes with drug trafficking.”
“The Rutherford County Sheriff’s Office is committed to reducing drug availability and the negative side effects that come along with illegal narcotics distribution. We believe working with our local, state, and federal partners to build and take strong cases to the US Attorney's Office for prosecution is an extremely effective strategy. Without our strong working relationship with the ATF, the results of this investigation and its long lasting positive impacts on our communities would not be possible. I am grateful for these valuable partnerships,” said Rutherford County Sheriff Francis.
The defendants will appear in federal court today in Asheville before a U.S. Magistrate Judge. 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.
Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville is handling the prosecution.
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North Carolina Man Sentenced to Life in Prison for Operating Violent and Extensive Sex Trafficking EnterpriseRead the Press Release
Shahid Hassan Muslim, aka “Sharp,” 33, was sentenced today to life in prison for operating an extensive sex trafficking enterprise that recruited women and girls – some as young as 16 years old – into prostitution.
The sentence was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina, Special Agent in Charge John A. Strong of the FBI’s Charlotte Division and Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcements Homeland Security Investigations (HSI) Atlanta Division.
In sentencing Muslim, U.S. District Court Judge Robert Conrad Jr. of the Western District of North Carolina also ordered him to pay $13,840 in restitution to the victims of the two sex trafficking counts, which charged Muslim with the sex trafficking of those victims for periods of two months and three months, respectively. On Aug. 11, 2014, a federal jury found Muslim guilty on all counts, including two counts of sex trafficking, one count of kidnapping, one count of production of child pornography, one count of witness tampering and five counts of promoting a prostitution business enterprise.
Evidence presented during Muslim’s four-day trial, including the testimony of five victims, revealed that Muslim’s sex trafficking enterprise operated in Charlotte, North Carolina, and other cities from at least 2010 until his arrest in November 2013. As established by the evidence presented at trial, Muslim recruited vulnerable young women and girls from the Charlotte area and advertised them for prostitution on the internet. He lured them into his scheme by promising that they would be part of a “family” when they had none. Once the women and girls were a part of his enterprise, Muslim demanded all of their proceeds and used brutal violence to control them. As one witness explained, he never hit the victims in the face because it would damage his “merchandise.”
According to the evidence established at trial, Muslim accused one teenage victim of withholding money from him and then proceeded to handcuff and beat her until she admitted to keeping some of her earnings. Muslim’s assaults on other victims included burning one victim’s leg with a cigarette to teach her a lesson; and punching a third victim in the stomach, without warning, as she balanced with her eyes closed during a “DUI test” he forced her to perform. After punching her in the stomach, Muslim then dragged her by her hair to a bathroom and repeatedly punched her until she vomited.
The evidence further showed that Muslim kidnapped one of the victims and viciously beat her after she left and reported him to the police. Witnesses testified that he lured her to a hotel, pretending to be a customer, then attacked her and shoved her into a storage trunk. After transporting the trunk to his house, he handcuffed her, bound her feet and continued to beat her, breaking a toilet in the process. Muslim then left her in the shower – still handcuffed – overnight with cold water running on her until she managed to escape and report the kidnapping to a neighbor the next day.
The evidence also demonstrated that Muslim continued his efforts to intimidate and control the victims even after his arrests on both federal and state charges. He convinced the kidnapping victim to submit a false affidavit declaring his innocence, resulting in dismissal of state charges. He further harassed a victim in the federal case to submit a false affidavit regarding a sexually explicit video that he produced of her when she was 16 years old.
“This defendant preyed on and abused vulnerable young women by running a violent sex trafficking operation,” said Principal Deputy Assistant Attorney General Gupta. “While no amount of jail time can undo the harm he caused and the trauma he inflicted, this sentence sends a clear message that people who engage in human trafficking and violate the most basic standards of human decency will face the full force of justice.”
“Shahid Muslim is a ruthless predator who used lies to lure vulnerable young women and underage girls into his criminal enterprise,” said U.S. Attorney Rose. “But instead of finding the better life his young victims had been promised, they endured unspeakable violence and exploitation in the hands of Muslim for his financial gain. My office will continue to aggressively prosecute those who engage in this illegal business that dehumanizes victims and strips them of their dignity.”
“Shahid Muslim promised his victims the loving support of a family, instead he controlled them through beatings, fear, and intimidation,” said Special Agent in Charge Strong. “The FBI devotes a significant amount of resources to helping sex trafficking victims recover from the trauma they suffer at the hands of ruthless people like Muslim. Today’s sentence is a stark warning, there is a harsh punishment for those who choose to sacrifice another person’s civil rights and freedom for their own profit.”
“Human trafficking is a form of modern-day slavery that Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with our law enforcement partners,” said Special Agent in Charge Annan. “The sadistic abuse inflicted by this defendant is unspeakable and hopefully victims can now find some relief in knowing the monster who exploited them will be safely locked away for many years.”
This case was investigated by the FBI and HSI, with assistance from the Charlotte-Mecklenburg County Police Department. It is being prosecuted by Assistant U.S. Attorney Kimlani M. Ford of the Western District of North Carolina and Trial Attorney Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
North Carolina Man Sentenced to Life in Prison for Operating Violent and Extensive Sex Trafficking EnterpriseRead the Press Release
CHARLOTTE, N.C. – Shahid Hassan Muslim, aka “Sharp,” 33, was sentenced today to life in prison for operating an extensive sex trafficking enterprise that recruited women and girls – some as young as 16 years old – into prostitution.
The sentence was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina, Special Agent in Charge John A. Strong of the FBI’s Charlotte Division and Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcements Homeland Security Investigations (HSI) Atlanta Division.
In sentencing Muslim, U.S. District Court Judge Robert Conrad Jr. of the Western District of North Carolina also ordered him to pay a total of $13,840 in restitution to the victims of the two sex trafficking counts, which charged Muslim with the sex trafficking of those victims for periods of two months and three months, respectively. On Aug. 11, 2014, a federal jury found Muslim guilty on all counts, including two counts of sex trafficking, one count of kidnapping, one count of production of child pornography, one count of witness tampering and five counts of promoting a prostitution business enterprise.
Evidence presented during Muslim’s four-day trial, including the testimony of five victims, revealed that Muslim’s sex trafficking enterprise operated in Charlotte, North Carolina, and other cities from at least 2010 until his arrest in November 2013. As established by the evidence presented at trial, Muslim recruited vulnerable young women and girls from the Charlotte area and advertised them for prostitution on the internet. He lured them into his scheme by promising that they would be part of a “family” when they had none. Once the women and girls were a part of his enterprise, Muslim demanded all of their proceeds and used brutal violence to control them. As one witness explained, he never hit the victims in the face because it would damage his “merchandise.”
According to the evidence established at trial, Muslim accused one teenage victim of withholding money from him and then proceeded to handcuff and beat her until she admitted to keeping some of her earnings. Muslim’s assaults on other victims included burning one victim’s leg with a cigarette to teach her a lesson; and punching a third victim in the stomach, without warning, as she balanced with her eyes closed during a “DUI test” he forced her to perform. After punching her in the stomach, Muslim then dragged her by her hair to a bathroom and repeatedly punched her until she vomited.
The evidence further showed that Muslim kidnapped one of the victims and viciously beat her after she left and reported him to the police. Witnesses testified that he lured her to a hotel, pretending to be a customer, then attacked her and shoved her into a storage trunk. After transporting the trunk to his house, he handcuffed her, bound her feet and continued to beat her, breaking a toilet in the process. Muslim then left her in the shower – still handcuffed – overnight with cold water running on her until she managed to escape and report the kidnapping to a neighbor the next day.
The evidence also demonstrated that Muslim continued his efforts to intimidate and control the victims even after his arrests on both federal and state charges. He convinced the kidnapping victim to submit a false affidavit declaring his innocence, resulting in dismissal of state charges. He further harassed a victim in the federal case to submit a false affidavit regarding a sexually explicit video that he produced of her when she was 16 years old.
“This defendant preyed on and abused vulnerable young women by running a violent sex trafficking operation,” said Principal Deputy Assistant Attorney General Gupta. “While no amount of jail time can undo the harm he caused and the trauma he inflicted, this sentence sends a clear message that people who engage in human trafficking and violate the most basic standards of human decency will face the full force of justice.”
“Shahid Muslim is a ruthless predator who used lies to lure vulnerable young women and underage girls into his criminal enterprise,” said U.S. Attorney Rose. “But instead of finding the better life his young victims had been promised, they endured unspeakable violence and exploitation in the hands of Muslim for his financial gain. My office will continue to aggressively prosecute those who engage in this illegal business that dehumanizes victims and strips them of their dignity.”
“Shahid Muslim promised his victims the loving support of a family, instead he controlled them through beatings, fear, and intimidation,” said Special Agent in Charge Strong. “The FBI devotes a significant amount of resources to helping sex trafficking victims recover from the trauma they suffer at the hands of ruthless people like Muslim. Today’s sentence is a stark warning, there is a harsh punishment for those who choose to sacrifice another person’s civil rights and freedom for their own profit.”
“Human trafficking is a form of modern-day slavery that Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with our law enforcement partners,” said Special Agent in Charge Annan. “The sadistic abuse inflicted by this defendant is unspeakable and hopefully victims can now find some relief in knowing the monster who exploited them will be safely locked away for many years.”
This case was investigated by the FBI and HSI, with assistance from the Charlotte-Mecklenburg County Police Department. It is being prosecuted by Assistant U.S. Attorney Kimlani M. Ford of the Western District of North Carolina and Trial Attorney Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Two Cocaine Traffickers Handed Down Lengthy Prison TermsRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. handed down lengthy prison terms to two cocaine traffickers for their involvement in a long-standing drug conspiracy, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Ricardo Rebollar, 27, of Mexico, was sentenced to 168 months in prison and Jose Munoz, 28, of Asheboro, N.C., was sentenced to 70 months of prison. Each defendant was also ordered to serve five years under court supervision following their prison terms.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI); Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas; Chief Robert C. Helton of the Gastonia Police Department (GPD); and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD).
According to filed documents and statements made in court, the conspiracy operated in Mecklenburg and Gaston Counties, and elsewhere, from 2011 to December 2014, and it involved more than 150 kilograms of cocaine with a street value of more than $7 million. Over the course of the investigation, law enforcement seized 19 firearms, including assault style weapons. Court records indicate that the co-conspirators used “cover cars” to provide armed support to couriers as they distributed multiple-kilograms of cocaine per delivery. This investigation has resulted in the conviction of more than 45 defendants and the seizure of more than 38 kilograms of cocaine and $2 million in drug proceeds.
Three others defendants were previously sentenced in connection with this investigation. They are:
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Jose Otoniel Rebollar, 33, of Asheboro, N.C., was sentenced on 12/8/2015 to 148 months
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Pablo Munoz, 32, of Asheboro, N.C., was sentenced on 1/29/2016 to 120 monthsfollowed by five years of supervised release.
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Raul Rebollar, 30, of Randleman, N.C., was sentenced on 11/20/2015 to 63 months in prison, followed by 3 years supervised release.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The investigation is led by the FBI, HSI, and GPD, with assistance from the North Carolina State Bureau of Investigation, CMPD, Randolph County Sheriff’s Office, Asheboro Police Department, and North Carolina State Highway Patrol. The ongoing investigation and prosecution for the government is being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
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Hickory, N.C. Physician Sentenced to 18 Months in Prison for Health Care FraudRead the Press Release
CHARLOTTE, N.C. – A Hickory physician was sentenced to 18 months in prison today on health care fraud charges for submitting to Medicaid and Medicare over $467,376 in fraudulent reimbursement claims, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Wayne Vincent Wilson, 55, was also ordered to serve one year of supervised release and to pay $208,112.58 as restitution to Medicaid and $2,148.08 to Medicare.
U.S. Attorney Rose is joined in making today’s announcement by Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region.
According to filed court documents and today’s sentencing hearing, Wilson is a licensed family practitioner and owner and operator of Wayne Wilson, MD Family Practice (the “Practice”) located in Hickory. Wilson previously admitted that from 2007 to 2014, he engaged in a scheme to defraud Medicare and Medicaid by submitting fraudulent reimbursement claims totaling more than $467,376 for services that were never provided to beneficiaries. The fraudulent claims resulted in payments of at least $210,120 to Wilson and the Practice.
According to court records, Wilson “added and padded” his Medicaid and Medicare reimbursements with these false claims because he believed that Medicaid did not pay him enough for his services. Court records show that in some instances Wilson perpetrated the fraud by adding non-existent services, such as nerve conduction studies, strep tests, and pulmonary stress tests among others, to actual patient office visits. In other instances, Wilson fabricated entire office visits and submitted fraudulent claims for dates that patients were not even seen at the office.
According to court records, beginning in 2005, Wilson contracted with an individual identified as “D.D.” to perform nerve conduction studies, and sought reimbursement for those services through the Practice. In February 2012, D.D. terminated his relationship with Wilson and the Practice, but Wilson continued to submit fraudulent reimbursement claims to Medicare and Medicaid, falsely stating that he had performed nerve conduction studies for beneficiaries, even though Wilson did not have the equipment or the expertise to provide such studies.
Wilson pleaded guilty to two counts of health care fraud in October 2015. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
HHS-OIG conducted the investigation. The prosecution of the case was handled by Assistant U.S. Attorney Kelli Ferry and Special Assistant U.S. Attorney Timothy Rodgers. Mr. Rodgers is a Special Deputy Assistant Attorney General with the North Carolina Department of Justice Medicaid Investigations Division. The SAUSA position is reflection of the partnership between the Medicaid Investigations Division and the United States Attorney that helps ensure the effective and vigorous prosecution of Medicaid fraud.
The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-
8477 (1-800-HHS-TIPS), or E-Mail at [email protected].
U.S. Attorney Jill Westmoreland Rose Meets with Leadership of Reentry Councils to Discuss the Efforts of Western District's Reentry Programs for Former OffendersRead the Press Release
CHARLOTTE, N.C. – United States Attorney Jill Westmoreland Rose met today with the leadership of Reentry Councils for Mecklenburg and Buncombe counties and a Project Reentry representative for Iredell county, to discuss the efforts of reentry programs in place aimed at reducing recidivism and helping former offenders transition successfully into mainstream society following incarceration. The Department of Justice has designated the week of April 24-30, 2016, as National Reentry Week, to bring attention to some of the unique challenges faced by formerly incarcerated individuals and to highlight the department’s efforts to support and strengthen reentry programs and to help former inmates stay out of the criminal justice system.
“The challenges faced by former offenders released from prison are multiple and can oftentimes contribute to a cycle of incarceration,” said U.S. Attorney Rose following today’s meeting. “Lack of employment and housing opportunities, educational needs, substance abuse and lack of vocational training are some of the barriers that can make a difference in whether a person successfully reenters society after serving his or her prison term. We are partnering with community organizations across the district to remove some of these obstacles and to provide former offenders with the tools and resources they need to be productive, law-abiding citizens post release.”
Reentry Councils for Mecklenburg and Buncombe Counties and Project Reentry for Iredell County are organizations that provide services to previously incarcerated individuals in their respective communities. At today’s meeting, each representative provided an overview of the services their programs offer to former inmates or those nearing the end of their prison term, including vocational training, finding and maintaining employment, access to education, housing needs, life skills training, parenting coaching, anger management, and substance abuse counseling. During today’s meeting, current challenges and ways of improving existing programs were discussed, as well as future initiatives and goals to enhance reintegration outcomes.
As part of National Reentry Week, U.S. Attorney General Loretta E. Lynch released this week the “Roadmap to Reentry,” the Department’s comprehensive vision to reduce recidivism through reentry reforms at the Federal Bureau of Prisons (BOP). These efforts will help those who have paid their debt to society prepare for substantive opportunities beyond the prison gates, promote family unity, contribute to the health of our economy, advance public safety and sustain the strength of our communities.
Each year, more than 600,000 citizens return to our neighborhoods after serving time in federal and state prisons. Another 11.4 million individuals cycle through local jails. And nearly one in three Americans of working age have had some sort of encounter with the criminal justice system — mostly for relatively minor, non-violent offenses, and sometimes from decades in the past. The long-term impact of a criminal record prevents many people from obtaining employment, housing, higher education, and credit — and these barriers affect returning individuals even if they have turned their lives around and are unlikely to reoffend.
The principles outlined in the “Roadmap to Reentry” are aligned with the work of the Federal Interagency Reentry Council which has been working since its creation five years ago to reduce recidivism and improve employment, education, housing, health and child welfare outcomes.
U.S. Attorney's Office Partners with the Western North Carolina Crime Victims' Coalition to Recognize 12 Individuals for Their Significant Contributions in Assisting Victims of CrimeRead the Press Release
ASHEVILLE, N.C. – United States Attorney Jill Westmoreland Rose announced that 12 individuals were recognized yesterday at an event commemorating National Victims’ Rights week, sponsored by the Western North Carolina Victims’ Coalition in partnership with the U.S. Attorney’s Office. The event was held at the Asheville Campus of the Asheville-Buncombe Technical Community College. As reflected in this year’s theme, “Serving Victims. Building Trust. Restoring Hope,” the award honorees were selected for their significant efforts and contributions in assisting victims of crime.
Speaking at yesterday’s event, U.S. Attorney Rose said, “We have gathered to remember, rebuild and restore. To remember loved ones lost to crime, to assist survivors rebuild their lives, and to restore the hope and trust of crime victims in their journey to healing and recovery.”
The 12 recipients selected received awards in five categories:
Victim Advocacy Professional:
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Christine Gibson – Disability and Elder Safe Coordinator with the 30th Judicial Domestic Violence and Sexual Assault Alliance, Inc.
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Meredith Hooks – Court Advocate and Family Justice Center Coordinator with Safelight in Henderson County.
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Melissa Knight – Court Advocate with Helpmate.
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Susie Presley – Victim Advocate with Haywood County Sheriff’s Office.
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Angelica Wind – Executive Director of Our Voice.
Outstanding Law Enforcement Professional:
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Sargent Benjamin McKay – Buncombe County Sheriff’s Office.
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Detective Joshua Meindl– Asheville Police Department.
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Detective Matthew Orr – Henderson County Sheriff’s Office.
Criminal Justice Professional:
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Rachael Groffsky – Assistant District Attorney with the 28th Prosecutorial District, Buncombe County.
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The Honorable James Calvin Hill – Chief Court Judge with the 28th Prosecutorial District, Buncombe County.
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Reid Taylor – Assistant District Attorney with the 30th Prosecutorial District.
Compassionate Community Volunteer:
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Carolyn Lescallitt– Volunteer with the 30th Judicial Domestic Violence and Sexual Assault Alliance, Inc.
U.S. Attorney Rose thanked the honorees for their outstanding dedication, service and support in working with crime victims and noted the important role each honoree has played in raising awareness and providing victims of crime with the support and resources they need in the aftermath of crime.
Along with the U.S. Attorney’s Office, the Western North Carolina Crime Victims’ Coalition is made up of victim advocates from the following agencies: Buncombe County Sheriff's Office; Asheville Police Department; Buncombe County District Attorney's Office in Prosecutorial District 28; Pisgah Legal Services; Caring for Children - Trinity Place; Helpmate; Our Voice; and the 30th Judicial District Domestic Violence and Sexual Assault Alliance, Inc.
National Crime Victims’ Rights Week honors and celebrates the achievements of the past thirty years in securing rights, protections, and services for victims. The bipartisan Victims of Crime Act (VOCA), passed by Congress in 1984, created a national fund to ease victims’ suffering. Financed by fines and penalties paid by offenders, the Crime Victims Fund supports services for victims of all types of crime, including assistance for homicide survivors, survivors of child sexual abuse, and victims of human trafficking, as well as rape crisis centers and domestic violence programs among others. VOCA also funds victim compensation programs that pay victims’ out-of-pocket expenses - such as counseling, funeral expenses, and lost wages.
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Mexican National Sentenced to Lengthy Prison Term for Trafficking Large Quantities of Crystal MethamphetamineRead the Press Release
ASHEVILLE, N.C. – Santiago Sanchez, 39, of Mexico, was sentenced today to 210 months in prison followed by five years of supervised release for trafficking large quantities of crystal methamphetamine, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Sanchez pleaded guilty in December 2015 to one count of possession with intent to distribute methamphetamine.
U.S. Attorney Rose is joined 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; Janie Sutton, Acting Director of the North Carolina State Bureau of Investigation; Sheriff Charles S. McDonald of the Henderson County Sheriff’s Office; Sheriff Donald J. Hill of the Polk County Sheriff’s Office; Sheriff Dudley Greene of the McDowell County Sheriff’s Office; Chief Allen Lawrence of the Marion Police Department; and Chief Tammy Hooper of the Asheville Police Department.
“Through the homemade meth production operation Sanchez devised and ran, he was able to produce and sell large quantities of crystal meth. Sanchez even involved his own children in his illegal activities using them to translate to further his drug manufacture and distribution. Sanchez illegally entered our country and began to poison our citizens through distribution of this illegal and devastating drug,” said U.S. Attorney Rose. “We now welcome him to the confines of the United States Bureau of Prisons where he will serve a lengthy and well-deserved sentence.”
Special Agent in Charge Salter stated, “All participating agencies played a crucial role in the eradication of this criminal network. Sanchez’s methamphetamine trafficking activities posed a significant threat to the quality of life in Buncombe, Henderson, Polk Counties and surrounding areas. The removal of this dangerous individual makes these communities safer today. I want to thank our federal, state and local law enforcement counterparts and the United States Attorney’s Office, who had a direct impact in making this investigation a success.”
According to filed court documents and statements made in court, from at least March 2015 to May 2015, Sanchez was responsible for trafficking large amounts of crystal methamphetamine in Buncombe, Henderson and Polk Counties and elsewhere. Over the course of the investigation, law enforcement observed Sanchez conducting numerous drug transactions, at times using his minor children as translators on the phone or even handing him the container with the narcotics. Law enforcement executed a search warrant at Sanchez’s residence and an adjacent outbuilding located in Polk County and seized more than a pound of crystal methamphetamine, an Igloo thermos containing 1,680.9 grams of liquid methamphetamine, a burner, a pot with a lid, cutting agents and other drug paraphernalia used by Sanchez to convert the liquid methamphetamine into crystal methamphetamine. Law enforcement also seized from the residence several firearms, ammunition and $3,200 in cash.
Sanchez is in federal custody and will be transferred to custody of the Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole. In addition to the imposed sentence, U.S. District Judge Martin Reidinger ordered the defendant be deported to Mexico upon completion of his prison term.
In making today’s announcement, U.S. Attorney Rose noted that multiple agencies worked together to bring this prolific crystal methamphetamine trafficker to justice and thanked the DEA, the SBI, the Henderson County Sheriff’s Office, the Polk County’s Sheriff’s Office, the McDowell County Sheriff’s Office, the Marion Police Department and the Asheville Police Department for investigating this case.
Assistant United States Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville handled the prosecution.
Henderson Co. Marijuana Grow Operator Sentenced to PrisonRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced a Henderson County marijuana grow operator to 54 months in prison, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Gary Maxwell Lee, 48, of Hendersonville, was also ordered to remain under court supervision for three years after his release from prison.
U.S. Attorney Rose 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; Janie Sutton, Acting Director of the North Carolina State Bureau of Investigation; and Sheriff Charles S. McDonald of the Henderson County Sheriff’s Office.
According to filed court documents and today’s sentencing hearing, in May 2015, law enforcement began their investigation into Lee, after receiving information that he was operating an extensive indoor marijuana growing operation. According to court records, Lee ran the marijuana grow house from two structures located next to the main home owned by Lee. Court records indicate that as part of the investigation law enforcement searched Lee’s house and the two structures located on the property, seizing 66 marijuana plants, 10.4 pounds of marijuana in various stages of drying and processing, and $4,245 in cash. Court records indicate that one of the structures was used as a “nursery” for the younger plants, whereas the larger, more mature plants were stored in the second structure. Lee had set up in the structures extensive lighting, air filtration, and hydration systems to assist in the growth of the plants. Law enforcement also seized numerous firearms, including shotguns and semi-automatic rifles, as well as twelve ammo cans containing thousands of rounds of ammunition.
According to court records, Lee took steps to avoid detection of his marijuana grow operation by law enforcement, including taking his trash to the dump or burning it, and using carbon filters to cut down on the odor emanating from the grow. Court records show that Lee has a previous conviction in Florida related to the manufacture of marijuana.
Lee pleaded guilty in December 2015 to manufacturing marijuana and being a felon in possession of firearms. He is currently in federal custody and will be transferred to custody of the Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
DEA, SBI, and the Henderson County Sheriff’s Office investigated the case. Assistant United States Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville handled the prosecution.
Man Sentenced to Eight Years in Prison for Post Office SchemeRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced today Jimmy Lee Williams, 48, of Charlotte to 105 months in prison for orchestrating a fraudulent check scheme that netted the conspiracy more than $650,000 in postage stamps and other merchandise, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Whitney also ordered Williams to serve two years under court supervision following the prison term and to pay $646,993.61 to the United States Postal Service as restitution.
Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service; John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; and Janie Sutton, Acting Director of the North Carolina State Bureau of Investigation join U.S. Attorney Rose in making todays’ announcement.
According to court documents and statements made in court, in two separate time periods between November 2010 to present, Williams used a network of 16 accomplices to defraud U.S. Post Offices and other businesses in North and South Carolina, Virginia, Maryland and the District of Columbia. Court records show that Williams and/or his accomplices used counterfeit or fraudulent checks and fraudulent identification to purchase postage stamps, gift cards and other merchandise with a total face value of more than $650,000.
To execute the fraudulent scheme, Williams used counterfeit checks and checks drawn on his own closed accounts and the bank accounts of accomplices he met in prison and through youth football leagues in the Concord, North Carolina area. According to court records, Williams’ accomplices gave the stamps they obtained to Williams, who then sold them to an Internet company in California as well as a North Carolina pawn shop, typically for 50%-70% of the face value. Williams recruited his accomplices from prison and wrote instructions on how to commit the charged postal fraud while serving a prison sentence for violating conditions of his supervised release from a previous federal conviction.
Williams pleaded guilty to two counts of conspiracy and one count of money laundering. 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.
USPIS, the FBI, and NC SBI investigated the case.Assistant U.S. Attorney Michael Savage, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charlotte Pimp Convicted of Sex Trafficking of A MinorRead the Press Release
CHARLOTTE, N.C. – A federal jury delivered a guilty verdict yesterday against Kenwaniee Vontorian Tate, 40, of Charlotte, for sex trafficking of a minor by fraud, force and coercion and sex trafficking of a minor while being required to register as a sex offender under North Carolina law, announce announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined making today’s announcement by Nick Annan, 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 (CMPD).
In making today’s announcement U.S. Attorney Rose stated, “Tate preyed upon a vulnerable young girl, lured her into a world of sex and violence and exploited her in the worst possible way. Sex trafficking and victimizing minors for financial gain is a reprehensible crime. My office will continue to work closely with our law enforcement partners to identify and prosecute sex traffickers who profit from prostituting minors.”
According to filed documents, statements made in court and evidence presented during the two-day trial:
Between September 2014 and February 2015, Tate caused a minor female to engage in commercial sex acts, namely prostitution. Tate met the victim when she was only 15 years old and became her pimp shortly after they met. Tate and the victim moved from hotel to hotel while she worked as a prostitute. Testimony at trial established that Tate controlled all of the profits from the prostitution of the minor victim and used it to support himself. Tate advertised the minor victim for sex on an Internet website and arranged sexual encounters for her. Testimony at trial also revealed that Tate slapped and hit the victim when she did not do as Tate instructed, but Tate was careful not to hit her in the face because it may affect her ability to earn money through prostitution. Trial evidence established that the sex trafficking came to an end when CMPD officers arrested Tate on February 17, 2015 while looking for a different missing minor. During that operation, CMPD officers found the minor victim hiding in a hotel closet.
Trial evidence also established that at the time that Tate caused the minor victim to engage in prostitution, Tate was registered as a sex offender in North Carolina based upon previous state convictions in Minnesota for criminal sexual conduct. Tate was also convicted previously in Minnesota federal court for conspiracy to commit sex trafficking of a minor for his involvement in a sex trafficking ring that trafficked juvenile females from Minnesota to Las Vegas, Nevada, to engage in commercial sex acts. The judge in that case ordered Tate to serve a 16-month sentence.
Tate has been in federal custody since his arrest in November 2015. At sentencing, he faces a mandatory minimum term of 15 years and a maximum of life in prison and a $250,000 fine for sex trafficking of a minor by force, fraud and coercion, and a consecutive term of 10 years in prison for sex trafficking of a minor while required to register as a sex offender. A sentencing date has not been set.
The investigation was handled by HSI and CMPD. Assistant U.S. Attorney Kimlani M. Ford is in charge of the prosecution.
President and Chief Financial Officer of Charlotte Area Payroll Services Company Sentenced to Prison in Connection with $2 Million Fraud Against ClientsRead the Press Release
CHARLOTTE, N.C. –The President and Chief Financial Officer (CFO) of a Charlotte-based payroll services company were sentenced to prison today by Chief U.S. District Judge Frank D. Whitney, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Jerry Wayne Overcash, 67, of Charlotte, and John Bernard Thigpen, 60, of Rock Hill, S.C., were sentenced to 46 months and 21 months in prison, respectively, for stealing over $2 million from client companies and using the money to fund exorbitant salaries. In addition to the prison term, they were each ordered to serve two years of supervised release and to jointly pay $1.3 million as restitution to the victim client companies. The Court will enter a final restitution amount in 90 days, to allow any additional eligible victims to submit their claims.
The company’s co-founder and Chairman of the Board, Frank Alton Moody, II, 56, of Arden, N.C., was indicted in March 2016 for his role in the fraudulent scheme.
U.S. Attorney Rose is joined in making today’s announcement by Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
“Overcash and Thigpen were integral members of an elaborate financial scheme that ripped off their clients’ money and defrauded the federal government. A prison sentence is the only punishment befitting of these two professional scam artists,” said U.S. Attorney Rose.
“The fraud scheme executed by the conspirators is an egregious story of countless lies and endless greed. They ignored their fiduciary responsibilities to their clients and left many of them holding the bag, while they stuffed their pockets. They were entrusted as professionals and to represent their client’s interests with respect to the Internal Revenue Service, and they abused this trust by ignoring their responsibilities and engaging in theft. IRS Criminal Investigation with our law enforcement partners remain committed to pursuing individuals like Overcash and Thigpen, and seeing that they face justice,” said Special Agent in Charge Holloman.
“The U.S. Postal Inspection Service is committed to investigating and bringing to justice those who prey on innocent victims for their selfish gain. We value the collaboration with our law enforcement partners to protect the American Public,” said Inspector in Charge Noyes.
According to documents filed in court and today’s sentencing hearings, Thigpen, a Certified Public Accountant, was hired in December 2010 to serve as the CFO of CenterCede Services Inc. (CenterCede), a payroll services company with clients in Charlotte and elsewhere. CenterCede was established in August 2010 by Overcash and Moody, to assume the business operations of another payroll services company the two men previously owned and operated, “The Resource Solutions Group” (TRSG). TRSG had been shut down by IRS in August 2010, for failing to pay more than $9 million in federal payroll taxes TRSG collected from its clients.
Court documents show that from November 2010 to November 2011, CenterCede purportedly provided payroll preparation and processing services to its clients. As such, CenterCede collected funds from its clients to pay the client companies’ federal tax obligations, gross payroll for the clients’ employees, worker’s compensation, and unemployment insurance, among other moneys, as well as fees due to CenterCede. According to court records, throughout the relevant time period, Thigpen, with oversight from Overcash and Moody, supervised the preparation of tax returns on behalf of client companies. Contrary to their representations to clients, the conspirators did not pay the clients’ federal taxes in appropriate amounts and by the applicable deadlines. Instead, according to court records, Moody, Overcash and Thigpen diverted the funds to pay their own exorbitant salaries and to cover growing liabilities, including the tax liabilities of other CenterCede clients. To keep the scheme afloat, the conspirators paid only those obligations necessary to keep their ongoing cash flow crisis a secret from clients.
As reflected in court documents, the conspirators favored what they called “priority” clients and attempted to keep those priority clients from learning about monthly cash shortfalls by frequently paying those clients’ obligations ahead of other non-priority clients. “Priority” clients generally had large payrolls with deposits necessary to fund CenterCede’s short-term cash needs and to keep the scheme afloat. Court records show that when clients inquired about failures to pay their obligations, the three conspirators took steps to conceal the fraud by providing false excuses and misleading explanations. Court records show that in the second and third quarters of 2011, Thigpen, Overcash and Moody defrauded CenterCede’s payroll clients of more than $2 million dollars. At the same time that the conspirators failed to pay the tax obligations of CenterCede’s clients, Overcash and allegedly Moody each continued to draw a $240,000 annual salary from CenterCede.
In announcing today’s sentences, Judge Whitney said that the Court wanted to “send a message to others entrusted with third parties’ money, and anyone who is a fiduciary of other people’s money.” Judge Whitney noted that Thigpen “learned his lesson the hard way.” Judge Whitney also said that Overcash “committed a serious crime that victimized a lot of businesses and individuals, and the Internal Revenue Service” and that Overcash’s conduct resulted in “a lot of people being severely hurt.”
Thigpen and Overcash previously pleaded guilty to wire fraud charges. Moody is currently charged with one count of conspiracy and one count of wire fraud and has been released on bond. The conspiracy charge carries a maximum of 5 years in prison and a $250,000 fine. The wire fraud charge carries a maximum of 20 years in prison and a $250,000 fine. All charges against Moody are allegations and he is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
The investigation for the case is being handled by USPIS and IRS-CI. Assistant U.S. Attorneys Corey F. Ellis and Taylor Phillips of the U.S. Attorney’s Office, in Charlotte are in charge of the prosecution.
Fayetteville, N.C. Woman Responsible for Creating Fake Patient Files in Medicaid Fraud Conspiracy Is Sentenced PrisonRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced to 33 months in prison a Fayetteville, N.C. woman responsible for creating fake patient records in a Medicaid fraud conspiracy, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Tanisha Melvin, 36, was also ordered to serve three years under court supervision and to pay $392,159.81 as restitution to Medicaid.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Rose in making today’s announcement.
According to information in filed court documents and today’s sentencing hearing, between October 2012 and August 2013, Melvin was involved in a Medicaid fraud conspiracy organized by the ring’s leader, Cynthia Harlan. Harlan owned and operated “Heartland Consulting and Marketing, Inc.,” a Charlotte-area company, purportedly specializing in the operation of mental health companies and Medicaid reimbursement. According to court records, Harlan executed a Medicaid fraud scheme involving the fraudulent submission of fake reimbursement claims to Medicaid for services that were never actually provided to beneficiaries. Court records show that Harlan relied on a network of conspirators, including Melvin, whom she had recruited to carry out the scheme.
According to court records, as part of the healthcare fraud conspiracy, Melvin was responsible for creating fraudulent patient records for companies purported to provide outpatient mental and behavioral health services, including “Kings of Carolina Care 1” (Carolina Care 1) in Rockingham, N.C., and “United Rehabilitation Services” (URS) in Erwin, N.C. At the direction of Harlan, Melvin fabricated and compiled the sham paperwork in patient files to support the false Medicaid reimbursement claims submitted on behalf of the two companies. These patient files included fabricated intake packets, non-existent mental health problems and made-up treatment for the problems. The patient files were intended to deceive Medicaid auditors in case there was an inquiry about the accuracy of the fake claims. According to court records, during the relevant time period the conspirators attempted to obtain from Medicaid over $1.6 million in fraudulent reimbursement claims. Melvin, Harlan and the other conspirators received a portion of the fraud proceeds for their respective roles in the scheme.
Court records show that after Harlan became aware that she was being investigated for Medicaid fraud, Harlan instructed Melvin to destroy records relevant to the scheme. Melvin destroyed documents and, as directed by Harlan, contacted other members of the conspiracy to alert them to the investigation and to instruct them to destroy documents, emails and text messages for the purpose of obstructing the investigation.
Melvin pleaded guilty in December 2015 to one count of health care fraud conspiracy. Today, she was released on bond following her sentencing hearing and will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In announcing today’s sentence Judge Whitney noted that the crime involved “Scarce taxpayer funds that are to be used to assist those that are the most needy.”
In addition to Melvin, three other members of the conspiracy have already been sentenced to prison. The owners of URS, Alexander Bass and Torrey Darnell Moton, were previously sentenced to 32 and 25 months in prison, respectively, three years of supervised release and were ordered to pay $370,372.37 as restitution to Medicaid. LaChanda Clotiel Parks, who was also responsible for generating some of the fake patient paperwork, was sentenced to 28 months in prison, followed by three years of supervised release, and was ordered to pay $352,565.69 in restitution for her role in the conspiracy. The owners of Carolina Care 1, Tyree Craig Jones and Claude Bernard McCray, have been charged with one count of health care fraud conspiracy. Cynthia Harlan is currently in federal custody on health care fraud conspiracy, aggravated identity theft and obstruction charges.
The investigation was handled by the FBI with assistance from the North Carolina Medicaid Investigations Division. Assistant U.S. Attorney Kelli Ferry is in charge of the prosecution.
The investigation is the work of the Western District’s joint Health Care Fraud Task Force. The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations. The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.
If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at [email protected]. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.
Federal Jury Delivers Guilty Verdicts Against Four MS-13 Gang MembersRead the Press Release
CHARLOTTE, N.C. – A federal jury delivered guilty verdicts today against four members of the street gang “La Mara Salvatrucha,” or “MS-13,” who were on trial for participating in a racketeering conspiracy, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. The convictions stem from the multiple acts of violence committed by the defendants for the benefit of the criminal enterprise, including murder and attempted murder. U.S. District Judge Robert J. Conrad Jr. presided over the trial.
Miguel Zelaya, 20, of Charlotte, Luis Ordonez-Vega, 36, of Concord, N.C., Jorge Sosa, 24, of Charlotte, and William Gavidia, 23, of Kannapolis, N.C. were each convicted of one count of conspiracy to participate in racketeering activity (RICO).
Zelaya was also convicted of murder in aid of racketeering and use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the death of Jose Orlando Ibarra.
Ordonez-Vega was also convicted of murder in aid of racketeering and use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in the death of Noel Navarro Hernandez.
Sosa was convicted of attempted murder in aid of racketeering and use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence, that being attempted murder in aid of racketeering.
According to filed court documents, witness testimony, trial evidence and statements made in court:
From at least in or about 2009 to about May 2015, the four defendants along with 33 others named in a federal indictment, were members of the MS-13 gang, a criminal organization with over 6,000 members in the United States and 30,000 members internationally. MS-13 originated in Los Angeles, California, and has spread to states across the country, including in North Carolina. The gang’s members are mostly immigrants or descendants of immigrants from El Salvador and other Central and Latin American countries. In North Carolina, some of the active MS-13 members are divided into different groups, or “cliques,” which include the “Trece Locos Salvatrucha,” the “Hollywood Locos Salvatrucha,” the “Charlotte Locotes Salvatrucha,” the “Centrales Locos Salvatrucha,” and the “Coronados Little Cycos Salvatrucha,” among others. The different cliques work together to carry out criminal acts, to protect the interests of the criminal enterprise, and to assist each other in avoiding law enforcement detection.
MS-13 members adhere to a set of gang rules and pay dues which fund the gang’s criminal activities and support other gang members or their families in the U.S and abroad. Gang members are also expected to protect the name, reputation, and status of the gang and its members, and to punish through acts of violence and intimidation those who disrespect the gang. Some MS-13 members signify their affiliation with the gang by wearing blue, black and white color clothing and certain “Mara Salvatrucha,” or “MS-13” tattoos.
Members of MS-13 in Charlotte participated in multiple meetings at various times to discuss gang-related matters and to plan the commission of future crimes for the benefit of the gang. They were also responsible for numerous criminal acts including murder and attempted murder.
Zelaya, a/k/a “Most Wanted” and “Ne Ne”, is a member of the “Coronados Little Cycos Salvatrucha” clique. On December 18, 2013, Zelaya shot and killed Jose Orlando Ibarra, an associate of a rival gang, “The Latin Kings.” According to trial evidence and testimony, Zelaya admitted to law enforcement that he shot Jose Ibarra because Ibarra owed him money for a gun and because Ibarra and his brother, a Latin King member, had been looking for one of Zelaya’s “homies” with a shotgun.
Ordonez-Vega, a/k/a “Big Boy,” is a self-admitted member of MS-13 from Nassau County, New York, and a member of the “Brentwood Locos Salvatrucha” clique. Ordonez-Vega has “MS” tattooed across his stomach and “La Mara Salvatrucha” tattooed across his chest. On June 6, 2013, Ordonez-Vega shot and killed Noel Navarro Hernandez in a strip mall parking lot in Charlotte. Evidence presented at trial showed that Ordonez-Vega and other MS-13 members targeted Navarro because they believed that Navarro was a rival gang member because of the way he talked, wore red, and his haircut.
Sosa, a/k/a “Koki” and “Loco” is a member of the “Charlotte Locotes Salvatrucha” clique. According to trial evidence, Sosa has been involved in multiple gang-related incidents on numerous occasions. For example, on February 1, 2008, Sosa flashed MS-13 gang hand signs at a rival gang member’s mother and pointed a handgun at her while they were stopped in traffic. On October 15, 2011, Sosa warned a man who asked him to leave a party that he would return with other MS-13 gang members to shoot the victim. Also, on July 5, 2013, Sosa and other MS-13 members tried to break into a vehicle then attempted to run over with a car the officers who tried to arrest them. And on June 30, 2013, Sosa was involved in a gang-related shooting, when he and another person followed their victims in a neighborhood in Charlotte and opened fire with a high caliber rifle.
Gavidia, a/k/a “Duro,” is also a member of the “Coronados Little Cycos Salvatrucha” clique. According to evidence presented at trial and witness testimony, Gavidia has carried out criminal acts in support of the gang and has often fought rival gang members in clubs. For example, Gavidia admitted that he taxed drug dealers in MS-13 dominated clubs. Gavidia was also involved in a shooting on August 11, 2013, when another MS-13 gang member and indicted co-conspirator, Albert Vela-Garcia, shot a victim in the back following a bar fight started by Gavidia. Gavidia has also attacked a victim for falsely claiming to be a member of MS-13.
“A federal jury has rightfully convicted four gang members responsible for committing multiple acts of violence, including murder,” said U.S. Attorney Rose in making this announcement. “Today’s guilty verdicts underscore that even though gang membership may in some ways ‘protect’ gangsters from outsiders, it certainly won’t protect them from the vast reach of the U.S. Attorney’s Office and our law enforcement partners. Together, we will continue to identify and prosecute gang offenders who carry out violent acts for the benefit of their criminal enterprise,” said U.S. Attorney Rose.
The four defendants convicted today will remain in federal custody until their sentencing, which has not been set.
Thirty of the 37 MS-13 gang members previously charged with RICO conspiracy by federal criminal indictment in connection with this case have entered guilty pleas and are currently awaiting sentencing. They are: Carlos Almonte, Jose Danny Argueta, Juan Bergamasco-Suarez, Milton Chavarria, Raul Contreras, Luis Erazo, Marvin Fuentes-Canales, Luis Funes-Rivera, Jorge Garcia, Cesar Garcia-Perez, Saul Gavidia, Raul Guardado, Angel Hernandez, Jose Manuel Linares, Rene Lopez-Ventura, Jose Moran-Celis, Daniel Navarro, Jonathan Noble, Christian Pena, Jorge Perez, Victor Pineda, Rosendo Rivas, Fec Rodriguez-Vareal, Oscar Trejo, Jaime Turcios, Jose Vasquez, Marlon Vasquez-Maldonado, Albert Vela-Garcia, and Alexis Villalta-Morales. Four others remain fugitives. They are: Neris Gutierrez, Salvador Ruiz, Luis Villalta, and Miriam Barilles-Escamilla.
Following today’s guilty verdicts, U.S. Attorney Rose commended the Charlotte Division of the FBI, ICE’s Homeland Security Investigations, the Charlotte-Mecklenburg Police Department and thanked them for working together to investigate this 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.
Assistant U.S. Attorneys Elizabeth Greene and William Miller are in charge of the prosecution.
Stockbroker Pleads Guilty to Securities Fraud for Operating $1.4 Million Ponzi SchemeRead the Press Release
CHARLOTTE, N.C. – Charles Caleb Fackrell, 36, of Booneville, N.C. appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to one count of securities fraud for operating a $1.4 million Ponzi scheme, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose 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 North Carolina Secretary of State Elaine F. Marshall.
According to filed court documents and today’s plea hearing, beginning from in or about May 2012 to about December 2014, Fackrell executed a Ponzi scheme using approximately $1.4 million in funds he solicited from at least 20 victim investors in Wilkes County and elsewhere. According to court records, Fackrell was a stockbroker who used his position of trust to solicit victim investors and steer them away from legitimate investments to purported investments with “Robin Hood, LLC,” “Robinhood LLC,” “Robin Hood Holdings, LLC,” “Robinhood Holdings, LLC” and related entities (collectively, “Robin Hood”). These were entities Fackrell controlled and through which he could access the victims’ funds.
Court records indicate that Fackrell solicited his victim investors by making false and fraudulent representations, including that the investors’ money would be invested in, or secured by, gold and other precious metals, when in fact Fackrell spent only a fraction of investor money on such assets. According to court records, Fackrell also falsely told victims that Robin Hood was a very safe investment, paying guaranteed annual returns of 5% to 7%. According to court records, contrary to the promises he made to his victims and instead of investing the victims’ funds as promised, Fackrell used the majority of the money to cover personal expenditures, including hotel expenses, groceries, and medical bills, to make purchases at various retail shops and to make large cash withdrawals. Fackrell also used a portion of the victims’ money to make purported “interest” payments to investors who demanded their money back and to induce further investments from existing investors and their friends and family members. In all, according to court records, Fackrell diverted over $700,000 of his victims’ money – nearly half of the investor money he obtained – back to other investors in Ponzi fashion payments.
According to court records, in an attempt to conceal his fraud, Fackrell asked a third party to destroy a computer and documents related to the Ponzi scheme, explaining that he was in trouble with the U.S. Securities and Exchange Commission.
“Fackrell is an unscrupulous scammer that betrayed those who trusted him with their nest egg. Instead of using his clients’ money for legitimate investments, as he promised he would, Fackrell focused on enriching himself and perpetuating his fraud through lies. Thanks to the great work of our law enforcement partners Fackrell’s business of siphoning his clients’ money is over,” said U.S. Attorney Rose. “This case is an example of how financial predators will use lies and deceit to get their hands on people’s hard-earned money, quickly turning trusting investors into financial fraud victims,” Rose added.
“At its most basic level, this is a case about greed and the abuse of trust. Charles Fackrell had no regard for the victims he betrayed, making empty promises for big investment returns. Now he will be held accountable for his actions because of the agents and prosecutors who worked so diligently to bring him to justice,” said Special Agent in Charge Strong.
“This case is particularly egregious because unlike the majority of registered stock brokers, this scam artist betrayed the trust of his clients for his own personal gain and benefit,” Secretary Marshall said. “We are extremely proud of assembling a case that has resulted in a guilty plea today.”
Fackrell was detained following his guilty plea. The securities fraud charge carries a maximum prison term of 20 years and a $5 million fine. A sentencing date for the defendant has not been set.
The case is being investigated FBI and the Securities Division of the North Carolina Department of the Secretary of State. U.S. Attorney Rose also thanked the North Carolina State Bureau of Investigation, the Yadkinville Police Department and Kinston’s Department of Public Safety for their invaluable assistance in this investigation.
The prosecution is being handled by Assistant United States Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte.
Two Men Sentenced for Armed Robbery of Fast Food RestaurantRead the Press Release
STATESVILLE, N.C. – Two men responsible for the armed robbery of an area fast food restaurant were sentenced to prison yesterday, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Dashawn Raquan Hunt, 27, and Davon Santario McKnight, 26, both of Charlotte, were sentenced to 192 and 87 months in prison, respectively. They were also each ordered by U.S. District Judge Richard L. Voorhees to spend three years under court supervision after they are released from prison.
“Over the past year, efforts have been aimed at crime prevention. However, the vigorous prosecution of violent criminals who spread fear in our communities and put innocent lives at risk remains a priority for my office. I would like to thank our local and federal law enforcement partners for their thorough investigation of this case that resulted in two dangerous criminals being taken off our streets,” said U.S Attorney Rose.
According to filed court documents and court proceedings, on February 5, 2014, Hunt and McKnight, wearing hoodies, masks, gloves, and brandishing handguns, entered a Firehouse Subs restaurant located at 14039 East Independence Boulevard in Indian Trail, N.C. The two men ordered some restaurant employees and patrons to get on the floor at gunpoint and told other employees to hand them money from the cash register and the safe. Hunt and McKnight then then fled the scene in a Ford Crown Victoria with $1,000 in cash. According to court records, a concerned citizen saw the pair leaving the restaurant and thinking their behavior was suspicious called 9-1-1. A police officer responding to the call stopped the vehicle and after approaching the car he noticed that one person was in the driver’s seat and another was lying down in the back seat. Court records show while the police officer called for back-up the two robbers took off in their car and sped away toward Charlotte. According to court records, Hunt and McKnight were arrested shortly thereafter, after the driver crashed his car into another vehicle.
According to court records, four days prior to this armed robbery, Hunt, assisted by Toburia Qunita Bennett, robbed at gunpoint a McAllister’s Deli located in Mooresville, N.C. According to court documents, on February 1, 2014, at about 4:00 a.m., Hunt approached a deliveryman who was making a delivery at the restaurant. Court records show that Hunt pointed his gun at the deliveryman and directed him inside the restaurant, where he ordered the victim to put the store’s safe on a dolly and wheel it out to the parking lot. Hunt then tied up the deliveryman inside the store and fled. Court records indicate that the deliveryman was able to get loose and call the police. Officers later found the store’s safe still sitting on the dolly in the restaurant’s parking lot.
According to court records, law enforcement located Bennett’s vehicle at a nearby gas station. Bennett denied to law enforcement any involvement in the robbery and was arrested at the scene for driving with an expired license. Court records indicate that while Bennett was sitting in her car, Hunt went to a nearby QT gas station, pointed a gun at the cashier and demanded the keys to the attendant’s car. The attendant handed over the keys to Hunt, who fled the scene in the stolen vehicle.
Bennett, 28, of Charlotte, later admitted to knowing that Hunt had committed other robberies and that he used a gun to carry out those robberies. She pleaded guilty to conspiracy to commit armed robbery and was sentenced in February 2016 to 43 months in prison and three years of supervised release.
Hunt and McKnight pleaded guilty to robbery charges in April 2015. Hunt also pleaded guilty to carjacking and use of a firearm in furtherance of a crime of violence in connection with the McAllister’s Deli robbery. They are both currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Rose thanked John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Chief Damon Williams of the Mooresville Police Department; Sheriff Eddie Cathey of the Union County Sheriff’s Office; Chief M.E. Plyler, Jr. of the Stallings Police Department; Chief Kerr Putney of the Charlotte-Mecklenburg Police Department; and Chief Rob Hunter of the Matthews Police Department for investigating the case.
Assistant U.S. Attorney Robert Gleason of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
Message to Potential Tax Cheats from Federal Prosecutors: Tax Crimes Result in Criminal Prosecution, Lengthy Prison Sentences and FinesRead the Press Release
CHARLOTTE, NC - With the deadline for filing income tax returns rapidly approaching, Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina, and Thomas J. Holloman, III, Special Agent in Charge, Charlotte Field Office, IRS Criminal Investigation, 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.
“During this time of the year, IRS will receive millions of tax returns from honest taxpayers who file their returns on time and pay taxes they owe,” said U.S. Attorney Rose. “Today’s warning is not for them. Today’s warning is for tax cheats who break tax laws and abuse our tax system. If you belong in this category, pay close attention. My office will hold accountable anyone who participates in a tax fraud scheme that puts an added tax burden on honest taxpayers and drains our public finances.”
“Tax fraud exists in many forms, from unscrupulous tax preparers filing false and fraudulent returns, to identity thieves, and to those that go complex lengths to hide their income and evade paying the taxes they owe. If you are considering engaging in this criminal activity, you will be caught.” said Special Agent in Charge Holloman. “There is no offseason for IRS Criminal Investigation, as we continue to engage in a year-round effort to investigate potential criminal violations of the Internal Revenue Code and other financial related crimes, in a manner that fosters confidence in the tax system and compliance with the laws. IRS Criminal Investigation will continue to vigorously pursue those who unjustly enrich themselves through tax fraud schemes.”
On March 16, 2016, Frank Alton Moody, II, an operator of Charlotte-area payroll services company CenterCede Services, Inc., was indicted for failing to pay more than $9 million in federal payroll taxes to the IRS that had been withheld on behalf of CenterCede’s clients. According to the indictment which was unsealed yesterday, Moody instructed and supervised others to prepare, sign and file employer’s quarterly federal tax return, Forms 941 and thereafter did not remit payment of taxes reflected. (3:16-cr-00070).
The prosecution of Moody for his role in failing to pay over employment taxes is just one example of our district’s commitment to prosecuting tax cheats including those who cheat on their own taxes, those who prepare false tax returns for others, and those who file fraudulent tax returns using stolen identity information.
TAX EVASION AND FILING FALSE TAX RETURNS.
Over the last year, the U.S. Attorney’s Office has prosecuted and convicted numerous individuals for omitting income from their individual tax returns, and defendants have received substantial sentences for tax charges, ranging from several years in prison to home confinement. For example, the following individuals were sentenced for lying to the IRS about their taxable income:
Amy Hilty (3:15-cr-00233), an accountant and former resident of Stanley, N.C., was sentenced to 18 months in prison in February 2016. Hilty pleaded guilty to tax evasion for hiding more than $520,000 in personal income from the IRS and failing to file tax returns for years 2008 through 2011. Hilty also pleaded guilty to wire fraud.
Jarrett Mitchem (1:14-cr-00035), a resident of Hendersonville, N.C. maintained a UBS bank account with a balance of approximately $4M and failed to report the earnings from the foreign investments on his 2005 - 2008 tax returns. He was sentenced in February 2016 to nine months in prison and three months of home confinement.
Sammie Marks (3:15-cr-00125), a resident of Matthews, N.C., owned and operated a metal and salvage business and failed to report more than $1.1 million of income he received from his business during years 2009 through 2013. Marks was sentenced in December 2015 to one year and one day in prison.
Janice Terry-Kidd (3:14-cr-00243), a resident of Huntersville, N.C., embezzled approximately $526,000.00 from her employer, Wilburn Auto Body, from 2008 to 2013. As a Human Resource Officer responsible for payroll, Terry-Kidd used the social security number of a previous employee to create fraudulent payroll checks and direct them to be deposited into her personal bank account. In addition, Terry-Kidd failed to report income from the embezzled payroll checks on her own personal income tax return resulting in approximately $106,000.00 of tax due and owing. Terry-Kidd was sentenced in November 2015 to 33 months in prison.
Teng Lor (3:15-cr-00080), a resident of Matthews, N.C., and the owner of T&C Equipment, Inc. and LOR Enterprises, Inc. which operated Laundromats in the Charlotte area concealed gross receipts and taxable income of more than $545,000 from the IRS for the 2010 through 2012 years. Lor was sentenced in October 2015 to six months in prison and six months of home confinement.
Mark Le (3:14-cr0010), a Huntersville physician, hid approximately $2.4 million in personal income from the IRS in 2009 and 2010 by falsely claiming that certain payments were business expenses of his medical practice. Le used these funds to purchase and construct a $2.4 million 8000-square foot residence on Lake Norman. Le, who pled guilty to tax evasion and health care fraud, was sentenced to 18 months in prison in September 2015.
FRAUDULENT RETURN PREPARERS
Our office diligently works to investigate and prosecute unscrupulous tax return preparers. Examples of prosecutions of tax return preparers during the last year include:
Malik Shropshire (3:15-cr-00025), a resident of Charlotte, he was sentenced in February 2016 to 51 months in prison for filing false tax returns and lying on a loan application. Shropshire worked as a tax return preparer and aided and assisted in the preparation of hundreds of false tax returns, that included, among other things, false Schedule C businesses, false dependents, and false refundable education credits.
Fitzroy Lawrence (3:15-cr-00057), a resident of Charlotte, he was sentenced in February 2016 to 27 months in prison for filing false tax returns. Lawrence aided and assisted in the preparation of hundreds of false tax returns which were filed with the IRS, seeking fraudulent tax refunds totaling approximately $2.6 million.
STOLEN IDENTITY REFUND FRAUD
In addition to prosecuting tax evaders and fraudulent tax return preparers, our office also investigates and prosecutes those individuals who steal the identities of taxpayers to file fraudulent tax returns. Examples include:
Yolanda Tiess Kitson (1:13-cr-00031), was sentenced to 72 months in prison and ordered to pay restitution of more than $3.9 million for her role in a fraudulent tax refund scheme involving using stolen identities to obtain fraudulent tax refunds.
Cara Michelle Banks (1:15-cr-00032) pleaded guilty for her role in the same fraudulent tax refund scheme as Kitson and is awaiting sentencing.
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:
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Identity Theft
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Phone Scams
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Phishing
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Return Preparer Fraud
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Offshore Tax Avoidance
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Inflated Refund Claims
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Fake Charities
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Falsely Padding Deductions on Returns
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Excessive Claims for Business Credits
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Falsifying Income To Claim Credits
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Abusive Tax Shelters
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Frivolous Tax Arguments
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.
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Convicted Felon Sentenced to Prison for Stealing FirearmsRead the Press Release
STATESVILLE, N.C. – A Taylorsville, N.C. man with multiple past felony convictions was sentenced yesterday to 92 months in prison for breaking into homes and stealing the owners’ firearms, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Andrew Ray Jonas, 34, was sentenced to three years of supervised release by U.S. District Judge Richard L. Voorhees, who presided over the sentencing hearing.
“Over the course of his criminal career Jonas had been warned many times to stay away from guns. Instead, Jonas went on a break-in spree, stealing numerous firearms from innocent homeowners which he then traded for money. As a result, he will spend the next seven years behind bars. Jonas should have paid closer attention to those who tried to warn him,” said U.S. Attorney Rose.
According to filed court documents and statements made in court, on May 19, 2014, law enforcement were notified that a residence in the Taylorsville area had been broken into. A A revolver, a pistol and jewelry were among the items stolen from the residence. According to court records, eye witnesses stated that prior to the break-in a gold SUV had been parked outside the residence, occupied by what appeared to be two females wearing bandanas. Later the same day, law enforcement located the vehicle which displayed a license plate that belonged to a different vehicle. Court records show that Jonas, who was a passenger, was wearing a bandana on his head. According to court records, Jonas was arrested after law enforcement found the two stolen firearms inside the car by Jonas’ feet.
Court records show that during the investigation law enforcement found evidence tying Jonas to multiple break-ins of homes in Taylorsville. According to court records, Jonas was also found in possession of tools stolen from the home break-ins, and in possession of pawn tickets for stolen lawn and power tools that he had pawned. Court records indicate that one person told law enforcement that he had purchased multiple firearms from Jonas and had paid $340 to $360 for each one. Jonas pleaded guilty in September 2015 to one count of theft of a firearm. Jonas’ previous convictions prohibit him from possessing a firearm and ammunition.
In handing down the sentence, Judge Voorhees stated that the sentence was to “protect the public from further crimes of the defendant.” Judge Voorhees expressed “grave concern for further criminality of particularly the breaking and entering sort.” Judge Voorhees observed, “hard working people work hard to get a house, and want it to be a castle, a place of sanctity, security,” and that defendant’s acts had violated that sense of security. Judge Voorhees also noted that Jonas has “’Villain’ tattooed on his right arm, it does not make him a villain, but speaks to his state of mind.”
Jonas 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 Rose thanked C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Sheriff Chris Bowman of the Alexander County Sheriff’s Office for investigating the case.
Assistant U.S. Attorney Robert Gleason of the U.S. Attorney’s Office in Charlotte was in charge of the prosecutions.
Leader of Major Drug Trafficking Ring and Seven Co-Conspirators Sentenced to PrisonRead the Press Release
STATESVILLE, N.C. – One of the leaders and seven co-conspirators of a major drug ring responsible for trafficking more than 450 kilograms of cocaine to Western North Carolina and funneling millions in drug proceeds back to Mexico were sentenced earlier this week, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Richard L. Voorhees presided over the sentencing hearings.
The eight men sentenced on Monday and Tuesday in federal court in Statesville are:
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David Maldonado-Rendon, 33, of Mexico – Sentenced to 210 months and five years of supervised release.
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Pedro Maldonado-Sanchez, 24, of Mexico – Sentenced to 87 months and five years of supervised release.
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Larry Woodley, 26, of Landon, S.C. – Sentenced to 66 months and three years of supervised release.
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Juan Pablo Diaz-Herrera, 26, of Troutman, N.C. – Sentenced to 57 months and three years of supervised release.
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Germaine Woodley, 42, of Waxhaw, N.C. – Sentenced to 48 months and three years of supervised release.He was also ordered to forfeit $1.2 million in drug proceeds.
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Miguel Ibarra-Espinoza, 35, of Mexico – Sentenced to 46 months and five years of supervised release.
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Alberto Pedraza, 56, of Farmville, N.C. – Sentenced to 46 months and three years of supervised release.
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Brian Maldonado-Reyes, 22, of Madera, California – Sentenced to eight months and three years of supervised release.
Three more main participants of the drug conspiracy, Fortino Maldonado-Guillen, James Davis, and the drug ring’s co-leader Maria Abernethy, aka Rosy Maldonado, will be sentenced on June 8, 2016. Two other indicted co-conspirators, Saloman Maldonado and Saul Maldonado-Guillen, aka Valeria Maldonado-Guillen, remain fugitives. Over the course of the investigation, law enforcement also seized approximately $750,000 in U.S. currency, six vehicles and five properties.
According to filed documents and statements made during court proceedings:
Over the course of the conspiracy, which lasted from about 2010 to about November 2014, David Maldonado, at first working with his uncle, Fortino Maldonado, and later with his wife, Rosy Maldonado, established a drug trafficking operation responsible for distributing approximately 450 kilograms of cocaine to Western North Carolina, South Carolina and elsewhere. James Davis, Germaine Woodley and his brother, Larry Woodley, were David Maldonado’s main buyers. At different times, the remaining co-conspirators operated as drivers, or “drug mules,” for the drug conspiracy.
February to July 2011 – David Maldonado and Fortino Maldonado
From about February 2011, David Maldonado and Fortino Maldonado began trafficking cocaine that Fortino Maldonado obtained from a source in Virginia. The two men trafficked between two and 10 kilograms of cocaine at a time, and resold it mainly to James Davis, Germaine and Larry Woodley and other local cocaine dealers. Between February and July 2011, David and Fortino Maldonado trafficked approximately 100 kilograms of cocaine and received approximately $3.2 million in drug proceeds.
December 2011 to November 2014 – David Maldonado and Rosy Maldonado
In or about December 2011, David Maldonado and his wife, Rosy Maldonado, began trafficking large amounts of cocaine supplied by a source in Mexico known to Rosy Maldonado. From about December 2011 to about November 2014, David and Rosy Maldonado and their co-conspirators trafficked approximately 350 kilograms of cocaine and received more than $11 million in drug proceeds. David and Rosy Maldonado funneled most of the drug proceeds back to Mexico, after keeping a portion of the money for running the drug conspiracy.
Over the course of the conspiracy, Rosy and David Maldonado made multiple trips to Texas to pick up the packaged cocaine from their Mexican supplier, which they transported back to North Carolina hidden in compartments the pair had installed in numerous vehicles. These secret compartments were located at different areas of the vehicles, depending on the type of car used, including under the front passenger seat, the rear bench seat, the vehicle’s truck bed and elsewhere. Some of the hidden compartments were large enough to transport as much as 19 kilograms in a single trip. Each time the pair picked up the packaged cocaine from Texas, they delivered large cash payments to their Mexican supply source. For example, between August and November 2012, the pair transported approximately 65 kilograms of cocaine from Texas and delivered approximately $1.7 million in U.S. currency.
Sometime after September 2013, Rosy and David Maldonado hired Juan Pablo Diaz-Herrera and Brian Maldonado-Reyes as drivers for the conspiracy. Juan Diaz and Brian Maldonado began transporting the cocaine and cash to and from Texas in the same manner. The conspiracy began to unravel when, in November 2013, law enforcement in Gulfport, Mississippi stopped the vehicle Juan Diaz and Brian Maldonado were driving to Texas, seizing more than $392,000 in cash.
“This highly active drug ring was responsible for trafficking hundreds of kilos of cocaine to the area,” said U.S. Attorney Rose in making today’s announcement. “I want to thank the multiple law enforcement agencies in North Carolina and other states for their hard work over the course of this investigation. Working with our law enforcement partners, we effectively traced and dismantled this poisonous pipeline of cocaine that has undoubtedly destroyed many lives and has affected the families of those addicted to the drug.”
In addition to the prison terms, the Judge Voorhees ordered David Maldonado, Pedro Maldonado and Miguel Ibarra to be deported to Mexico upon completion of their respective prison terms. All federal sentences are served without the possibility of parole.
The case is the result 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 Rose thanked the multiple agencies involved in this case for their investigative efforts and assistance in dismantling this major drug trafficking ring. Specifically, U.S. Attorney Rose commended the work of the Drug Enforcement Administration (DEA); the Internal Revenue Service, Criminal Investigation Division; the United States Marshals Service; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Matthews Police Department; the Pineville Police Department; the Monroe Police Department; the Gastonia Police Department; the Charlotte-Mecklenburg Police Department; the Cornelius Police Department; the Gaston County Sheriff’s Office; the Union County Sheriff’s Office; the Iredell County Sheriff’s Office; the Beaufort County Sheriff’s Office; the Gilford County Sheriff’s Office; the Charleston County Sheriff’s Office; the Mississippi Highway Patrol; and the Gulf Coast High Intensity Drug Trafficking Area (HIDTA) Intelligence Center.
Assistant U.S. Attorney Elizabeth Greene led the prosecution for the U.S. Attorney’s Office. Assistant U.S. Attorney Sanjeev Bhasker handled the sentencings of the defendants.
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Federal Judge Sentences South Carolina Man to Prison for Unlawful Possession of A FirearmRead the Press Release
CHARLOTTE, N.C. – A South Carolina man was sentenced today to 52 months in prison for a firearms violation, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term handed down by U.S. District Judge Max O. Cogburn, Jr., Buster Marshall, 44, of Fort Mill, S.C. was also ordered to serve a three-year term of supervised release. Marshall pleaded guilty in November 2015 to one count of unlawful possession of a firearm. Marshall’s previous felony convictions prohibit him from possessing a firearm.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Chief Rob Hunter of the Matthews Police Department; Sheriff Eddie Cathey of the Union County Sheriff’s Office; and Chief J. Bryan Gilliard of the Monroe Police Department.
According to filed court documents and statements made in court, on March 25, 2015, Marshall confronted his ex-girlfriend at the parking lot of a fast food restaurant located in Matthews, N.C. Court records show that when the woman refused to speak with Marshall, he pulled out a revolver, pointed it at her and pulled back the hammer. When Marshall’s ex-girlfriend called 9-1-1, Marshall drove off in his car. According to court records, law enforcement attempted to pull over Marshall’s vehicle, but Marshall eluded the officers driving at high speed, eventually striking another vehicle in Monroe, N.C. Court records indicate that after hitting the other car, Marshall fled from law enforcement on foot with the silver revolver tucked in his waistband. Marshall then unsuccessfully tried to take another vehicle and he was arrested by law enforcement shortly thereafter.
Marshall has been in federal custody since July 2015 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 investigation was handled by ATF, the Matthews Police Department, the Union County Sheriff’s Office and the Monroe Police Department. Assistant U.S. Attorney Craig Randall of the U.S. Attorney’s Office in Charlotte was in charge of the prosecutions.
Federal Judge Revokes U.S. Citizenship of Man Charged with Concealing His Criminal HistoryRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that U.S. District Judge Max O. Cogburn, Jr. revoked the U.S. citizenship of a man charged with concealing his criminal history on his naturalization application. Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (ICE/HSI) in Georgia and the Carolinas joins U.S. Attorney Rose in making today’s announcement.
Wilson Rene Cagua-Anzules, 34, of Charlotte, pleaded guilty in July 2015 to one count of making false and misleading statements during the application process to become a United States citizen. Yesterday, Judge Cogburn sentenced Cagua-Anzules to a year of probation stemming from that conviction and granted the government’s motion to revoke the defendant’s American citizenship. The defendant was also ordered to return to the government his certificate of naturalization, his American passport, his voting card and any other documents evidencing American citizenship. The Court also ordered that Cagua-Anzules must leave the United States voluntarily on or before Friday, April 8, 2016, or otherwise be arrested by immigration agents.
According to the sentencing hearing and court documents filed in the case, Cagua-Anzules was born in Ecuador in 1982, and entered the United States in 1999 as a lawful permanent resident. In June 2010, Cagua-Anzules filed an application for naturalization, and answered “No” on the application form’s question, “Have you ever committed a crime or offense for which you were not arrested?” In February 2011, Cagua-Anzules’ naturalization application was approved, following an oral interview with a United States Citizenship and Immigration Services (USCIS) officer. Cagua-Anzules received his certificate of naturalization in March 2011.
According to court records, on or about February 15, 2012, Cagua-Anzules pleaded guilty in Mecklenburg County Superior Court to one count of taking indecent liberties with a child and received a sentence of 15 to 18 months in prison. Court records show that in his state court proceedings, Cagua-Anzules admitted that he had committed this crime in August 2010. Court records indicate that the criminal act occurred during Cagua-Anzules’ naturalization process, but the defendant failed to reveal this material information both on his naturalization application form and during his interview with a USCIS officer.
“Today, a federal judge stripped the U.S. citizenship of a man who did not deserve such privilege,” said U.S. Attorney Rose. “Cagua-Anzules violated our immigration laws and compromised the integrity of our naturalization proceedings. The United States has always been a welcoming country to honest, law-abiding foreign nationals in search of freedom, prosperity and the pursuit of the American dream. But make no mistake that we will prosecute those who try to cheat their way into an American citizenship. Liars and cheats need not apply,” Rose added.
The investigation was handled by ICE/HSI. Assistant U.S. Attorney Kenneth Smith of the U.S. Attorney’s Office in Charlotte was in charge of the prosecutions.
Charlotte Man Sentenced to More Than 13 Years for Carjacking A Family at Gun PointRead the Press Release
CHARLOTTE, N.C. – Xavier Shiheen Mills, 23, of Charlotte, was sentenced today to 161 months in prison for carjacking a family at gunpoint, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered Mills to serve three years under court supervision after he is released from prison.
U.S. Attorney Rose is joined in making today’s announcement by C.J. Hyman, 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 (CMPD).
According to court documents and today’s sentencing hearing, on or about January 7, 2015, Mills carjacked a woman, her teenage son, and her other two young children, ages three and four, at a gas station located in Charlotte. According to court records, the family had stopped at the gas station to refill their car, when Mills approached the female victim who was standing by the gas pump, pointed a firearm at her and demanded the car keys, which were inside the vehicle. Court records show that Mills got inside the car to look for the keys, pointed the gun at the male victim seating in the passenger seat, and hit him in the head with the firearm. According to court records, once the male victim was out of the car, Mills fired his gun and the bullet entered a nearby parked unoccupied vehicle, passing through a child’s car seat and driver’s headrest. At that time, the male victim reached into the car, retrieved the keys and gave them to Mills. The male victim was able to pull the two young children out of the car before Mills drove off with the stolen vehicle.
Court records show that Mills was captured on surveillance video and was identified by an individual who knew him and recognized the red backpack Mills was carrying at the time of the carjacking. Law enforcement recovered the stolen vehicle a few days later. Court records indicate that inside the stolen vehicle, law enforcement found Mills’ backpack, ammunition and the firearm he had used to carry out the carjacking. In November 2015, Mills pleaded guilty to one count of carjacking and one count of possession of firearm in furtherance of a crime of violence.
“Mills turned a family’s quick stop at a gas station into a nightmare, terrorizing them and carelessly putting their lives, and the lives of other bystanders, in danger. Thankfully, no loss of life occurred. Mills is headed to federal prison but this family will continue to feel the effects of this harrowing experience for a long time. We are grateful to them for their cooperation in the investigation and prosecution,” said U.S. Attorney Rose.
“This case is another example of ATF’s commitment to ensure the public’s safety by removing violent criminals from our communities. This result could not have happened without the outstanding partnership between ATF and the Charlotte Mecklenburg Police Department,” said Special Agent in Charge Hyman.
Mills will be transferred to custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF and CMPD. The prosecution for the government was handled by Special Assistant U.S. Attorney Rebecca McNerney and Assistant U.S. Attorney Craig Randall of the U.S. Attorney’s Office in Charlotte.
Asheville Summit Addresses the Epidemic of Heroin Addiction and Opioid Drug AbuseRead the Press Release
ASHEVILLE, N.C. – Today, the U.S. Attorney’s Office for the Western District of North Carolina hosted a conference in Asheville to address the growing threat of heroin addiction and opioid drug abuse in the western part of the district. The conference was the first-ever held in the area and was co-sponsored by the Drug Enforcement Administration (DEA), the Buncombe County Sheriff’s Office, the Asheville Police Department and Smoky Mountain LME/MCO, a local management entity/managed care organization.
Each year more than 46,000 people in the U.S. die from a drug overdose and half of those deaths are related to opioid abuse, including prescription pain medication. People who take prescription painkillers, which are prescribed by a physician, can become addicted with just one prescription. Most first-time abusers of painkillers obtain them from a friend or relative. A 2014 national survey reported an estimated 1.4 million people in the United States abused a prescription pain killer for the first time that year. In the 1960’s, more than 80% of opioid abusers began using heroin first. In the 2000’s, 75% of opioid abusers started with prescription opioids. More than 10 million people in the United States, age 12 and older, reported non-medical use of prescription opiates in 2014.
“Heroin addiction and opioid drug abuse are public health threats we must tackle head on,” stated U.S. Attorney Jill Westmoreland Rose, who delivered opening remarks this morning. “As heroin is quickly becoming the number one cause of overdose deaths in the area, the consequences of opioid drug abuse are taking a tremendous toll on our communities. Today’s summit puts a spotlight on the devastating impact of heroin and opioid addiction and the importance of combining our resources to address this public health crisis, focusing on awareness, prevention, treatment and developing a coordinated community response to this epidemic.”
Approximately 200 professionals from the fields of law enforcement, medicine, substance abuse and treatment, as well as interested community members attended the summit, held on the campus of the University of North Carolina in Asheville. Speakers from federal and local law enforcement agencies, medical experts and representatives of community organizations presented on a broad range of topics including: the alarming rise in heroin and opioid addiction; heroin trafficking trends and law enforcement efforts to stem the flow of opiates; prevention and medical treatment; and ways community organizations can support combating opioid addiction in western North Carolina and promote second chances for individuals in recovery. Audience members also heard a first-hand account from a parent’s perspective on dealing with the death of a child from heroin overdose and the impact of the loss on the family.
U.S. Attorney Rose thanked the DEA, the Buncombe County Sheriff’s Office, the Asheville Police Department and Smoky Mountain LME/MCO for their co-sponsorship and emphasized importance of the conference stating that, “Today’s summit is not a one-time event. It is the beginning of a focused collaboration between law enforcement, the healthcare field and our community partners to confront heroin addiction and opioid drug abuse, address the problem in real and meaningful ways, and develop a systematic response to this dangerous epidemic.”
Methamphetamine Dealer Sentenced to 7 YearsRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today a methamphetamine dealer to 84 months in prison, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Paul Corbi, 35, of Asheville, N.C. was also ordered to serve four years of supervised release following his prison term.
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 Sheriff Van Duncan of the Buncombe County Sheriff’s Office (BCSO) join U.S. Attorney Rose in making today’s announcement.
According to filed documents and statements made in court, on July 18, 2014, law enforcement conducted a traffic stop of the vehicle Corbi was driving. During the course of the traffic stop, law enforcement recovered methamphetamine, some of which was packaged in a manner consistent with re-distribution, and a set of scales. They also found a plastic bag containing methamphetamine and $3,130 in cash in Corbi’s pockets. In total, law enforcement seized approximately 47 grams of methamphetamine, with an approximate street value of $4,700. According to court records, at the time of his arrest Corbi had several outstanding state arrest warrants, including one for assaulting a government employee in state court. In June 2015, Corbi pleaded guilty to one count of possession with intent to distribute methamphetamine.
Corbi 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 investigation was handled DEA and the Buncombe County Sheriff’s Office. Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville prosecuted the case.
Jamaican National Pleads Guilty to Airport Drug ConspiracyRead the Press Release
CHARLOTTE, N.C. – Winston Sherif Richards, 40, a citizen of Jamaica, appeared in federal court and pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. Magistrate Judge David S. Cayer presided over today’s plea hearing.
Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Patti Fitzpatrick, Port Director of the U.S. Customs and Border Protection (CBP) Area in Charlotte join U.S. Attorney Rose in making today’s announcement. This investigation is a direct result of HSI’s Airport Drug Interdiction initiative.
According to filed plea documents and today’s plea hearing, on October 24, 2015, Richards flew into Charlotte Douglas International Airport directly from Montego Bay, Jamaica. Upon entering the United States, Richards presented himself to CBP agents at the airport. Richards, who acknowledged packing his own luggage, had in his possession a suitcase and a computer bag. After initial questioning, Richards was sent to secondary inspection. According to filed court documents, at secondary inspection, CBP agents opened Richards’ luggage and discovered an orange-and-grey colored backpack. Agents examined these items and discovered anomalies within the lining of the backpack. Court records show that upon further inspection, the agents discovered two bags of cocaine hidden within the backpack lining, weighing approximately eight-hundred-twenty-two (822) grams with a street value, after sale and distribution, of approximately $100,000.
According to court records, upon discovery of the drugs, Richards was interviewed by HSI agents and gave multiple inconsistent statements about his luggage and eventual destination in the United States. Over the course of interview, Richards told HSI agents that he was hired by a man to bring some “stuff” to the United States and to deliver this bag to an unknown man in New York. In court today, Richards admitted to actively participating to the drug conspiracy.
Richards is currently in federal custody. The charge levied against him carries a maximum prison term of 20 years and a $1,000,000 fine. Richards also faces deportation proceedings upon completion of his prison term, which will be determined by the Court at sentencing. A sentencing date has not been scheduled yet.
In making today’s announcement U.S. Attorney Rose thanked HSI, CBP and the North Carolina Department of Public Safety, Alcohol and Law Enforcement, for their investigation of the case. The prosecution for the government is being handled by Assistant U.S. Attorney Sanjeev Bhasker of the U.S. Attorney’s Office in Charlotte.
Charlotte Man Sentenced to Seven Years for Robbing A Bank at GunpointRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced today Jemichael Lovelle Strong, 34, of Charlotte, to seven years in prison, followed by two years of supervised release on firearms charges for robbing a Charlotte-area bank in July 2015, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Chief Kerr Putney of the Charlotte Mecklenburg Police Department (CMPD).
According to court documents and today’s sentencing hearing, on July 27, 2015, Strong robbed a First Citizen’s Bank branch located at 4325 Randolph Road, in Charlotte, stealing $3,871 in cash. Court records show that Strong walked into the branch, pointed a handgun at a teller and showed her a note that read, “Put 100s, 50s, and 20s in a bag.” Court records indicate that the teller retrieved money from the drawer and attempted to hand it to Strong. Strong pushed his gun more in the teller’s direction, shook his head “no” and pointed his gun back at the teller’s drawer, nodding “yes” when the teller asked Strong if he wanted more money. Court records show after the teller began walking toward Strong’s direction to hand him the cash, he shook his head “no” again, and nodded “yes” when the teller asked him if he wanted a bag for the money. Strong fled the scene after the teller handed him the bank bag containing the cash.
According to court records, law enforcement retrieved Strong’s fingerprints from a bank deposit slip he had used to cover his gun at the time of the robbery. A bank employee also told CMPD officers that she believed Strong had visited the bank on a previous occasion, wearing what looked like a security guard’s uniform. Court records show that on July 31, 2015, CMPD officers arrested Strong at his residence, and recovered a security guard uniform matching the description of the bank employee, which they determined belonged to Strong’s girlfriend. Law enforcement also seized from the residence the handgun that Strong used to carry out the bank robbery.
Strong pleaded guilty in December 2015 to one count of possession of a firearm in furtherance of a crime of violence. He remains in federal custody and will be turned over 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 investigation was handled by the FBI’s Safe Streets Task Force and CMPD. The prosecution for the government was handled by Assistant U.S. Attorney George Guise of the U.S. Attorney’s Office in Charlotte.
Financial Services Company Executive Pleads Guilty to Obstruction of JusticeRead the Press Release
CHARLOTTE, N.C. – The CEO of Preferred Merchants LLC, a financial services company based in Napa, California, pleaded guilty yesterday to engaging in an elaborate obstruction of justice scheme to conceal millions of dollars—which were subject to a freeze order and seizure warrant—from the government using a series of offshore accounts, domestic and foreign nominee accounts, a shell company and related bank and brokerage accounts.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina, Special Agent in Charge Michael Rolin of the U.S. Secret Service’s Charlotte, North Carolina, Field Division and Special Agent in Charge Thomas J. Holloman III of the Internal Revenue Service-Criminal Investigation (IRS-CI) Charlotte Field Office made the announcement.
Jaymes Meyer, aka James Meyer, 47, of Napa, pleaded guilty yesterday before U.S. Magistrate Judge David S. Cayer of the Western District of North Carolina in Charlotte to obstruction of justice.
According to the plea agreement, in or about 2012, the U.S. Securities and Exchange Commission’s (SEC’s) Division of Enforcement commenced a securities fraud investigation concerning a Ponzi scheme centering on Rex Ventures Group LLC (RVG), a North Carolina-based company for which Preferred Merchants held millions in assets in treasury and trust accounts. As a result of its investigation, the SEC filed a civil enforcement action against RVG, after which the court entered a freeze order that appointed a receiver and froze all of RVG’s assets. Among other things, the receiver was responsible for marshaling, managing and distributing remaining RVG assets to impacted RVG investors. In addition to the freeze order, the U.S. Secret Service also obtained a seizure warrant of RVG assets held by Meyer through Preferred Merchants. Meyer admitted that in August 2012, the SEC informed him of, among other things, the investigation and the court order freezing RVG’s assets and requested that Meyer freeze any RVG assets in his possession, custody or control.
According to the plea agreement, in response to this request, Meyer misled the SEC by falsely implying that Preferred Merchants did not exercise dominion or control over any RVG assets when, in fact, Meyer controlled approximately $17.4 million in RVG assets. Meyer further admitted that he wired approximately $4.8 million from an RVG trust account to a brokerage account under his control within an hour of learning about the SEC’s investigation. Over the next 10 months, Meyer used that money to purchase homes in Napa and the Turks and Caicos, to which he subsequently made $1.5 million in improvements, and withdrew approximately $195,000 in cash. He also established a Cook Islands-based trust account, formed a shell company and opened a brokerage account in the shell company’s name to further conceal the trail of RVG assets subject to the freeze order and seizure warrant.
Meyer also admitted that throughout the pending civil litigation surrounding the RVG scheme, he made fraudulent and misleading statements to the U.S. District Court for the Western District of North Carolina, the SEC and the court-appointed receiver during depositions.
In connection with his plea agreement, Meyer agreed to pay an approximately $4.8 million money judgment and to forfeit the homes that he purchased in the Turks and Caicos and Napa as proceeds of the obstruction of justice offense.
The U.S. Secret Service and the IRS-CI investigated the case.
Assistant U.S. Attorney Mark T. Odulio of the Western District of North Carolina and Trial Attorney Kevin Lowell of the Criminal Division’s Asset Forfeiture and Money Laundering Section-Bank Integrity Unit are prosecuting the case.
Financial Services Company Executive Pleads Guilty to Obstruction of JusticeRead the Press Release
The CEO of Preferred Merchants LLC, a financial services company based in Napa, California, pleaded guilty yesterday to engaging in an elaborate obstruction of justice scheme to conceal millions of dollars—which were subject to a freeze order and seizure warrant—from the government using a series of offshore accounts, domestic and foreign nominee accounts, a shell company and related bank and brokerage accounts.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina, Special Agent in Charge Michael Rolin of the U.S. Secret Service’s Charlotte, North Carolina, Field Division and Special Agent in Charge Thomas J. Holloman III of the Internal Revenue Service-Criminal Investigation (IRS-CI) Charlotte Field Office made the announcement.
Jaymes Meyer, aka James Meyer, 47, of Napa, pleaded guilty yesterday before U.S. Magistrate Judge David S. Cayer of the Western District of North Carolina in Charlotte to obstruction of justice.
According to the plea agreement, in or about 2012, the U.S. Securities and Exchange Commission’s (SEC’s) Division of Enforcement commenced a securities fraud investigation concerning a Ponzi scheme centering on Rex Ventures Group LLC (RVG), a North Carolina-based company for which Preferred Merchants held millions in assets in treasury and trust accounts. As a result of its investigation, the SEC filed a civil enforcement action against RVG, after which the court entered a freeze order that appointed a receiver and froze all of RVG’s assets. Among other things, the receiver was responsible for marshaling, managing and distributing remaining RVG assets to impacted RVG investors. In addition to the freeze order, the U.S. Secret Service also obtained a seizure warrant of RVG assets held by Meyer through Preferred Merchants. Meyer admitted that in August 2012, the SEC informed him of, among other things, the investigation and the court order freezing RVG’s assets and requested that Meyer freeze any RVG assets in his possession, custody or control.
According to the plea agreement, in response to this request, Meyer misled the SEC by falsely implying that Preferred Merchants did not exercise dominion or control over any RVG assets when, in fact, Meyer controlled approximately $17.4 million in RVG assets. Meyer further admitted that he wired approximately $4.8 million from an RVG trust account to a brokerage account under his control within an hour of learning about the SEC’s investigation. Over the next 10 months, Meyer used that money to purchase homes in Napa and the Turks and Caicos, to which he subsequently made $1.5 million in improvements, and withdrew approximately $195,000 in cash. He also established a Cook Islands-based trust account, formed a shell company and opened a brokerage account in the shell company’s name to further conceal the trail of RVG assets subject to the freeze order and seizure warrant.
Meyer also admitted that throughout the pending civil litigation surrounding the RVG scheme, he made fraudulent and misleading statements to the U.S. District Court for the Western District of North Carolina, the SEC and the court-appointed receiver during depositions.
In connection with his plea agreement, Meyer agreed to pay an approximately $4.8 million money judgment and to forfeit the homes that he purchased in the Turks and Caicos and Napa as proceeds of the obstruction of justice offense.
The U.S. Secret Service and the IRS-CI investigated the case.
Trial Attorney Kevin Lowell of the Criminal Division’s Asset Forfeiture and Money Laundering Section-Bank Integrity Unit and Assistant U.S. Attorney Mark T. Odulio of the Western District of North Carolina are prosecuting the case.
Henderson Co. Man Sentenced for Firearms Related OffensesRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced a Hendersonville, N.C. man to 60 months in prison and three years of supervised release on firearms related offenses, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In June 2014, a federal jury convicted Warren Rosslyn Newell, 49, of two counts of possession of ammunition by a convicted felon.
C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Sheriff Charles S. McDonald of the Henderson County Sheriff’s Office join U.S. Attorney Rose in making today’s announcement.
According to filed court documents and evidence presented at Newell’s trial, on July 30, 2013, law enforcement conducted a traffic stop of Newell’s vehicle and determined he was driving with a suspended license. During the same traffic stop, law enforcement also recovered from Newell a non-functioning .22 caliber apparatus (commonly referred to as a “pen gun”), which was loaded with one round of .22 caliber ammunition. Law enforcement also found in the trunk of Newell’s car his backpack, which contained a black mask, gloves, ligatures, and five knives. Following Newell’s arrest, law enforcement retrieved another round of .22 caliber ammunition from his pocket. According to court records, Newell’s prior convictions in Texas and South Carolina prohibit him from possessing a firearm and/or ammunition.
According to trial evidence and witness testimony, Newell told law enforcement that he needed the pen gun for protection, because he frequently worked for drug dealers as a debt enforcer. According to evidence presented at trial, Newell told law enforcement that because of his reputation after serving 17 years in the Texas prison system, those who owed money to drug dealers usually agreed to make a payment without delay. Newell also told law enforcement that he used the items inside the backpack in connection with collecting on the drug debts.
“We are grateful for the excellent investigative work by the Henderson County Sheriff’s Office and ATF,” said U.S Attorney Rose. “While Newell’s ultimate plans are unknown, what is clear is that he was in possession of the means and mechanisms to engage in unlawful conduct. His sentence today reflects the seriousness of his crimes.”
“ATF is committed to actively investigating and apprehending criminals who illegally acquire firearms or use firearms to commit violent crimes. We will continue to work with our law enforcement partners in the Carolinas to keep our communities safe,” said Special Agent in Charge Hyman.
“While I certainly support the right of law abiding citizens to own and carry firearms, convicted felons have lost that right as a result of their life choices. I applaud the work of our Henderson County Sheriff’s Office investigators, ATF and the U.S. Attorney’s Office as we partner to minimize criminal activity in our community,” stated Chief McDonald.
Newell 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 investigation was handled by ATF and the Henderson County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville.
North Carolina Resident Sentenced to Prison for Tax FraudRead the Press Release
CHARLOTTE, N.C. – A Charlotte, North Carolina, area resident was sentenced to 41 months in prison today for his involvement in a fraudulent tax return scheme, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.
According to court documents and statements in court, in early 2011, Daniel Heggins, 44, and Joan Clark operated Guarantor Manufactures Inc. (GMI), a business that purported to help individuals who were in debt. Heggins and his co-conspirators, including Clark, prepared and filed false tax returns on behalf of GMI’s clients claiming fraudulent tax refunds from the Internal Revenue Service (IRS) in the amount of their clients’ debts. The intended loss of the conspiracy exceeded $4 million. Heggins also charged GMI’s clients bogus filing fees of $2,500 to $5,000 in order to prepare and file the fraudulent returns. Heggins and Clark pleaded guilty to conspiracy to defraud the United States in November 2015.
“While taxpayers are ultimately responsible for the information reported on their returns, they also are entitled to honest and accurate assistance from those paid to prepare their returns,” said Acting Assistant Attorney General Ciraolo. “Heggins and Clark took advantage of clients seeking such assistance, and used their fraudulent scheme to line their own pockets. The Department will continue to work with our partners in the Internal Revenue Service to investigate, prosecute and incarcerate such individuals for their criminal conduct, and seek restitution for the victims.”
“As we are in the midst of the annual tax season, it is important for consumers to be cognizant of fraudsters who charge exorbitant fees to prepare tax returns and engage in the submission of fraudulent tax returns,” said U.S. Attorney Rose. “Taxpayers are urged to be wary of using tax return preparation businesses which make unusual or extreme promises and to exercise caution when selecting a tax preparation service.”
“During filing season, I’d like to encourage the taxpayers to heed the old warning, ‘Buyer beware,’” said Special Agent in Charge Thomas J. Holloman III of IRS Criminal Investigation Division (IRS-CI), Charlotte Field Office. “Heggins and Clark perpetrated a scheme in which they offered assistance to clients and then victimized them, through their crimes. While the methods utilized by criminals may change, the constant is that we will be there to make sure they are brought to justice.”
In addition to the prison term, U.S. District Judge District Max O. Cogburn Jr. ordered Heggins to serve three years of supervised release and pay $ 24,325 in restitution to victims of the fraud, which included former clients and the IRS. Clark was sentenced in February to 20 months in prison for her involvement in the fraudulent refund scheme and for a separate scheme in which she filed fraudulent tax returns in the name of trusts.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Rose commended special agents of IRS-Criminal Investigation and the FBI, who investigated the case and Assistant U.S. Attorney Mike Savage of the Western District of North Carolina and Trial Attorney Todd Kostyshak of the Tax Division, who prosecuted the case.
Monroe Resident Sentenced to 18 Years in Prison for Transporting Child PornographyRead the Press Release
CHARLOTTE, N.C. – On Tuesday, March 15, 2016, U.S. District Judge Max O. Cogburn, Jr. sentenced Gerald Lynn Weir, Jr., 45, of Monroe, N.C., to 216 months in prison on transportation of child pornography charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Weir was also ordered to serve a lifetime of supervised release and was ordered to register as a sex offender.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Sheriff Eddie Cathey of the Union County Sheriff’s Office.
According to filed documents and statements made in court, on or about November 29 2013, law enforcement became aware that an individual, later identified as Weir, was using an e-mail address to send and receive child pornography. In December 2013, law enforcement executed a federal search warrant for Weir’s email account. A review of Weir’s email account revealed at least 66 emails related to child exploitation, including 42 videos and 136 images of children being sexually abused. Weir pleaded guilty to transportation of child pornography in October 2015.
Weir has been in federal custody since June 2015, and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by HSI assisted by the Union County Sheriff’s Office. Assistant U.S. Attorney Cortney S. 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 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.
Leader of Drug Trafficking Conspiracy Sentenced to More Than 11 YearsRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that the leader of a drug trafficking conspiracy was sentenced to 135 months in prison. U.S. District Judge Max O. Cogburn, Jr. also ordered Laurentino Benitez, 45, of Huntersville, N.C., to serve four years under court supervision after he is released from prison.
U.S. Attorney Rose 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.
According to filed court documents and today’s sentencing hearing, from at least 2013 to about May 2015, Benitez was the leader of a drug ring responsible for trafficking large amounts of narcotics, including cocaine, heroin and marijuana, to the Charlotte area. Court records show that the drugs were sent to North Carolina from Texas and Mexico by other members of the conspiracy, usually concealed in vehicles or inside electronic goods. Once delivered to Charlotte, court records show that the drugs were redistributed locally to other members of the conspiracy. Benitez previously admitted in court documents that he was responsible for trafficking between 15 to 50 kilograms of cocaine.
According to court records, over the course of the conspiracy law enforcement seized from Benitez multiple firearms, including a shotgun, six pistols and ammunition, and over $866,820 in illegal drug proceeds. Benitez pleaded guilty in October 2015 to one count of conspiracy to distribute and to possess with intent to distribute controlled substances.
Benitez has been in federal custody since April 2015 and will be transferred to the custody of Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Five others have been charged in connection with the drug conspiracy. They are: Henry Adams, Jr., Roberto Pineda-Alberran, Charles Potts, Jason Taylor, and Sidney Truesdale. Adams was previously sentenced to 24 months in prison and three years of supervised release after pleading guilty to one count of conspiracy to distribute and to possess with intent to distribute controlled substances. Potts, Taylor and Truesdale have also each pleaded guilty to the same charge and are currently awaiting sentencing. Pineda-Alberran has pleaded guilty to one count of money laundering conspiracy and is awaiting sentencing.
The investigation was handled by DEA. Assistant U.S. Attorney Dana Washington of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Armed Methamphetamine Trafficker Sentenced to 20 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. handed down a 20-year prison sentence today to Joseph Michael Osborne on drug conspiracy and firearms offenses, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Cogburn also ordered Osborne, 38, of Charlotte, to serve five years under court supervision after he is released from prison.
U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas, and Chief Kerr Putney of the Charlotte Mecklenburg Police Department (CMPD).
According to court proceedings and filed court documents, beginning in at least 2014 continuing through April 2015, Osborne was part of a drug conspiracy involving the distribution of methamphetamine in and around Mecklenburg County. According to court records, Osborne sold methamphetamine to an undercover officer. On April 2, 2015, law enforcement executed a search warrant at Osborne’s residence and seized 254 grams of 98.1% pure methamphetamine, five handguns, one of which was stolen, an AR-15 assault-style firearm, and $35,733 in cash. Osborne pleaded guilty in October 2015 to conspiracy to distribute methamphetamine and possession of firearms in furtherance of drug trafficking.
Osborne 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 Rose thanked HSI and CMPD for their investigative efforts. The prosecution was handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.