Western District of North Carolina
Press releases recorded for this federal judicial district.
Owner of Costa Rican Call Center Sentenced to Nine Years in Prison for Defrauding Elderly through Sweepstakes ScamRead the Press Release
A dual U.S.-Costa Rican citizen was sentenced yesterday to 108 months in prison for his role in a $1.88 million sweepstakes fraud scheme that victimized hundreds of elderly U.S. residents, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.
Geoffrey Alexander Ramer, 36, formerly of Falls Church, Virginia, was sentenced today by U.S. District Judge Max O. Cogburn Jr. of the Western District of North Carolina. Ramer was also ordered to pay $2,871,430.35 in restitution and to forfeit $1,886,018.
On Sept. 15, 2014, Ramer pleaded guilty to one count of conspiracy to commit wire fraud, eight counts of wire fraud, one count of conspiracy to commit money laundering and four counts of international money laundering in connection with the telemarketing fraud scheme.
According to the plea documents, from 2008 through December 2013, Ramer owned and operated call centers located in Costa Rica. Ramer admitted that he and his co-conspirators called U.S. residents, many of whom were elderly, and falsely informed the victims that they had won a substantial cash prize in a sweepstakes, and that, in order to receive their prize money, the victims were to send money to Costa Rica for a purported refundable insurance fee. After receiving the victims’ money, the co-conspirators would contact the victims to falsely inform them that the prize amount had increased and the victims needed to send additional money for more purported fees, Ramer admitted. According to the plea, Ramer and his co-conspirators would continue these attempts to collect additional money until the victims went broke or discovered the fraud. Ramer admitted that he and his co-conspirators utilized VoIP phones that displayed a Washington, D.C., area code in order to conceal that they were calling from Costa Rica, and sometimes falsely claim to be from a U.S. federal agency to give victims a false sense of security. The co-conspirators kept the victims’ funds, never provided any winnings to the victims and used the funds to continue the call centers’ operation and for the co-conspirators’ personal benefit, Ramer admitted.
Plea documents state that, along with his co-conspirators, Ramer was responsible for causing more than $1.88 million in losses to hundreds of elderly Americans.
The U.S. Postal Inspection Service, the Internal Revenue Service-Criminal Investigation, the FBI, the Federal Trade Commission and the Department of Homeland Security are investigating the case. Senior Litigation Counsel Patrick M. Donley and Trial Attorney William H. Bowne of the Criminal Division’s Fraud Section are prosecuting the case.
Charlotte Man Sentenced to Three Years in Prison for $2 Million Health Care Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that Eric Bernard Mitchell, 44, of Charlotte, was sentenced to 37 months in prison for defrauding Medicaid of over $2 million. U.S. District Judge Max O. Cogburn, Jr. also ordered Mitchell to serve one year under court supervision and to pay $ 2,049,932.12 as restitution to Medicaid. Mitchell pleaded guilty October 2015 to health care fraud and money laundering charges.
U.S. Attorney Rose is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division (MID), Derrick L. Jackson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General for the region including North Carolina, and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to filed court documents and today’s sentencing hearing, from about 2007 to about 2009, Mitchell co-owned and operated Angelic Community and Family Services, L.P. (Angelic), which provided alternative care in a non-institutional setting to Medicaid recipients with intellectual/developmental disabilities. Angelic later became defunct, and in 2009, Mitchell assisted in the creation of another company, identified in court documents as “Company #1,” which provided the same type of services as Angelic. Mitchell operated significant portions of Company #1’s business and had exclusive control of the company’s bank accounts. According to court records, both Angelic and Company #1 were approved by Medicaid to provide such services to beneficiaries and to receive reimbursement from the government program.
Court records show that that from about October 2009 to about June 2014, Mitchell submitted fraudulent claims to Medicaid on behalf of Company #1, seeking reimbursement for services which were never provided to beneficiaries with developmental disabilities. According to court records, Mitchell submitted the fraudulent claims using the Medicaid beneficiary information of former clients of Angelic, who Mitchell knew were approved to receive such services. Over the course of the scheme, Mitchell submitted at least $2.5 million in fraudulent claims using the beneficiaries’ stolen information and to receiving over $2 million in payments from Medicaid.
According to court records, Medicaid directed payments for Company #1’s reimbursement claims, including the fraudulent ones, to multiple bank accounts exclusively controlled by Mitchell. Over the course of the conspiracy, Mitchell used portions of the Medicaid funds to cover personal expenses, including to make multiple car payments to a Mercedes dealer and to pay for various car repair services.
Mitchell will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by HHS-OIG, IRS-CI and MID. Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
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 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.
Statement of U.S. Attorney Jill Westmoreland Rose on the U.S. Court of Appeals Fourth Circuit Decision in U.S. v. Nicholas RaginRead the Press Release
CHARLOTTE, N.C. – Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina, provided the below statement regarding the recent U.S. Court of Appeals decision in U.S. v. Ragin:
“Mr. Ragin’s prosecution, conviction and incarceration kept the community safe. While we are disappointed that the Court of Appeals did not accept the findings of fact by the trial judge who we believe was in the best position to observe the conduct of defense counsel during the trial, public safety continues to be our priority and we are committed to retrying Mr. Ragin for the crimes he committed.”
A copy of this press release and the court’s opinion may be found on the website of the U.S. Attorney’s Office for the Western District of North Carolina.
Four Sentenced to Prison for Their Involvement in Methamphetamine Trafficking Ring Operating in Henderson County AreaRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Max O. Cogburn, Jr. today sentenced four men to prison terms ranging from 63 months to 39 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 Nahuan Solano, 27, of Hendersonville, N.C. to 63 months in prison followed by five years of supervised release; Eric Lee Garber, 41, of Saluda, N.C. to 60 months in prison followed by four years of supervised release; Benjamin Nelson, 31, of Hendersonville, to 57 months in prison followed by five years of supervised release; and Allan Collado-Raudez, 23, of Asheville, N.C. to 39 months in prison followed by four years of supervised release. They each pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute methamphetamine.
According to filed court documents and today’s sentencing hearing, from about May 2014 to May 2015, the four men were involved in a drug trafficking conspiracy, 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 was a methamphetamine trafficker and acted as a runner 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, to meet Alvarenga’s mother. During the traffic stop, law enforcement seized nearly 10 pounds of methamphetamine from a backpack located in the trunk of the car.
The four men 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.
Four others, Maria Del Ruiz-Zazueta, Stephanie Alvarenga, Daniel Alfaro, and Antonio Barbosa have also entered guilty pleas for their involvement in the drug conspiracy and are currently awaiting sentencing.
Two more conspirators, Wade Henderson and Edwardo Lopez are currently charged with one count of conspiracy to distribute and to possess with intent to distribute methamphetamine and one count of possession with intent to distribute methamphetamine.
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.
Federal Judge Sentences Jackson Co. Woman to 70 Months for Trafficking Crystal MethamphetamineRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Max O. Cogburn, Jr. today sentenced Jamie Lynn Swartz, 36, formerly of Sylva, N.C. N.C. to serve 70 months in prison followed by five years of supervised release on drug conspiracy charges, 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; B.W. Collier, Director of the North Carolina State Bureau of Investigation; and Sheriff Chip Hall of the Jackson County Sheriff’s Office.
According to filed court documents and today’s sentencing hearing, from about August 2013 to March 2015, Swartz engaged in a drug conspiracy and was responsible for trafficking crystal methamphetamine to Jackson County and surrounding areas. According to court records, Swartz was utilizing a source of supply in Atlanta, Georgia for larger quantities of crystal methamphetamine. Court records show that Swartz made frequent trips to Atlanta and purchased the drugs from her co-defendant, Lisa Keith Jenkins.
Swartz pleaded guilty in October 2015 to one count of conspiracy to possess with intent to distribute methamphetamine. She has been in federal custody since August 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.
Lisa Jenkins was sentenced on February 2, 2016 to 78 months in prison and five years of supervised release, after pleading guilty to conspiracy to possess with intent to distribute methamphetamine.
The investigation was handled by the DEA, SBI and the Jackson 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.
Federal Judge Sentences Two Methamphetamine Traffickers to Lengthy Prison TermsRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Richard L. Voorhees handed down lengthy prison terms to two methamphetamine traffickers today, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Roger Dale Franklin, 54, of Bogart, Georgia, was sentenced to 40 years and Mario Alberto Mondragon, 38, of Mexico, was sentenced to 30 years in prison. They were each ordered to serve five years under court supervision, following their prison terms.
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 Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas.
According to court proceedings, filed documents and evidence presented at each defendant’s trial:
Franklin was involved in a methamphetamine trafficking conspiracy, from about 2007 to about 2014, and, along with his conspirators, Franklin sold approximately five kilograms of methamphetamine. Over the course of the conspiracy, in 2013, law enforcement officials in Lenoir and Caldwell County, as well as in Morganton, seized methamphetamine from Franklin’s vehicle on four occasions. On two of those occasions, Franklin was in possession of handguns.
From 2012 to June 2014, Mondragon was responsible for trafficking over 4.5 kilograms of high-quality crystal methamphetamine “ice” - which has a street value of more than $150,000.
The defendants will be transferred to the custody of the Federal Bureau of Prisons upon designation to a federal facility. All federal sentences are served without the possibility of parole.
The sentencings are the result of two parallel and coordinated Organized Crime Drug Enforcement Task Force (OCDETF) investigations, codenamed “Lay Low” (involving Mondragon) and “Dixie Crystal” (involving Franklin) led by DEA and HSI, with the assistance of the North Carolina State Bureau of Investigation, North Carolina State Highway Patrol, Alexander County Sheriff’s Office, Alleghany County Sheriff’s Office, Ashe County Sheriff’s Office, Boone Police Department, Caldwell County Sheriff’s Office, Catawba County Sheriff’s Office, Hickory Police Department, Iredell County Sheriff’s Office, Lenoir Police Department, Lincoln County Sheriff’s Office, Mooresville Police Department, Pineville Police Department, Statesville Police Department, Burke County Task Force, and other law enforcement agencies throughout North Carolina and Texas, Georgia, and Tennessee.
According to court documents, to date, more than 80 individuals have been convicted as a result of the two related investigations. Court records show that the drug trafficking organizations involved have trafficked methamphetamine worth millions of dollars. Over the course of the investigation, law enforcement seized more than 10 kilograms of crystal methamphetamine, $100,000 in U.S. currency and other assets, and numerous firearms.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Rose thanked all the law enforcement agencies for their investigative efforts. The prosecution for both investigations is being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Man Sentenced to 45 Months in Prison on Wire Fraud Charges for Fraudulent Refund SchemeRead the Press Release
CHARLOTTE, N.C. – Robert Michael Milton, 51, of Blacksburg, S.C., was sentenced yesterday on wire fraud charges and was ordered to serve 45 months in prison for committing a 29-month fraudulent refund scheme targeting Walmart stores in North Carolina, South Carolina, Georgia and Florida, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Chief U.S. District Judge Frank D. Whitney also ordered Milton to serve two years of supervised release.
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.
According to filed court documents and yesterday’s sentencing hearing, Milton engaged in the fraudulent scheme from December 2010 to April 2013. Court records show that Milton manufactured counterfeit Walmart paper sales receipts to appear substantially similar to previously-issued genuine Walmart paper sales receipts that Milton obtained when he purchased one or more prepaid debit cards totaling from $500 to $1,000. Court records show that, using transaction numbers from the original Walmart store receipts, Milton printed counterfeit Walmart receipts that replaced the actual purchased products associated with the transaction codes with UPC-barcodes and descriptions of substituted counterfeit Microsoft software and counterfeit DVDs. Court records show that Milton took advantage of a glitch in Walmart’s system, which the company has since fixed, and used the counterfeit Walmart receipts and counterfeit software and DVDs to get full refunds for the retail price of the original transaction. In addition to using counterfeit software and DVDs, Milton also used low-priced fishing rods and reels affixed with barcodes for high-priced fishing rods and reels to obtain fraudulent refunds.
According to court records, Milton targeted and obtained fraudulent refunds from numerous Walmart stores in North Carolina, South Carolina, Georgia and Florida, as reflected in a Walmart Store Atlas seized from Milton’s warehouse. Court records show that Milton’s warehouse contained thermal receipt printers, a barcode reader, 85 fake driver’s licenses for Ohio, South Carolina and Nebraska, and 1,600 counterfeit holograms for Ohio driver’s licenses. Milton’s warehouse also contained a Mapquest printout that mapped out a 786-mile, two-day Georgia road trip with 70 waypoints associated with Walmart stores.
At Milton’s sentencing, the government introduced published National Retail Federation reports that estimated the “amount of fraudulent returns” in the retail industry ranged from $9.1 billion to $14.3 billion during the time period from 2010 through 2013. According to court records, the combined losses were estimated at approximately $400,000 for fraudulent refunds paid to Milton and the value of seized counterfeit software and seized DVDs Milton used in his fraudulent refund wire fraud scheme. Milton pleaded guilty to a wire fraud charge in July 2014.
Milton has been in custody since his arrest in April 2013, 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 HSI. The prosecution for the government was handled by Assistant United States Attorney Thomas O’Malley of the U.S. Attorney’s Office in Charlotte.
U.S. Attorney Rose Announces over $7.7 Million in Federal Grants Awarded in 2015 to Grantees in the Western DistrictRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that over $7.7 million in federal grants were awarded in 2015 to local law enforcement agencies, non-profit organizations, educational institutions and tribal government programs in the Western District. The federal grants were awarded by the Office of Justice Programs (OJP), the Office of Violence against Women (OVW), the Office of Community Oriented Policing Services (COPS Office), and the Bureau of Justice Assistance (BJA).
In making today’s announcement, U.S. Attorney Rose stated, “Federal grant funding is an important resource for local law enforcement, community groups and non-profit service providers. The much-needed funding is used to support law enforcement initiatives, fund tribal programs, enhance public safety, and provide victim assistance services within local and tribal communities.”
Grantees in 12 of the western district’s 32 counties received federal funding. The funding will be used by local law enforcement to support a broad range of activities, including conducting state and local initiatives, technical assistance, training, equipment, supplies, court programs, prevention and education programs, drug treatment and enforcement programs and crime victim and witness programs, among others. Grants provided to educational institutions will be used for research purposes to assist law enforcement and to fund outreach and public awareness efforts, such as combating violence against women on campus.
Funding allocated to non-profit organizations will be used for comprehensive victim-centered services, including victim assistance and advocacy, and legal services to victims of sexual assault and dating violence. Funding provided to tribal government programs will be used to enhance civil and criminal tribal court systems and to improve access to those systems, as well as creating a domestic program to improve the support services available to Indian women victims, to develop ongoing education and prevention campaigns, to provide community outreach and legal assistance to Indian women.
The Office of Justice Programs (OJP) provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime fighting strategies. Current OJP funding opportunities can be found at: http://ojp.gov/funding/Explore/CurrentFundingOpportunities.htm.
The Office on Violence Against Women (OVW) currently administers 24 grant programs authorized by the Violence Against Women Act (VAWA) of 1994 and subsequent legislation. For a list of OVW grant programs and additional grant funding information please visit: http://www.justice.gov/ovw/grant-programs.
The Office of Community Oriented Policing Services (COPS Office) is the component of the U.S. Department of Justice responsible for advancing the practice of community policing by the nation’s state, local, territorial, and tribal law enforcement agencies through information and grant resources. Since 1995, COPS Office has invested over $14 billion to advance community policing. For the latest applicant and grantee information please go to: http://www.cops.usdoj.gov/grants.
The Bureau of Justice Assistance (BJA) provides leadership and assistance to local criminal justice programs that improve and reinforce the nation’s criminal justice system. BJA’s goals are to reduce and prevent crime, violence, and drug abuse and to improve the way in which the criminal justice system functions. In order to achieve such goals, BJA programs illustrate the coordination and cooperation of local, state, and federal governments. BJA works closely with programs that bolster law enforcement operations, expand drug courts, and provide benefits to safety officers. BJA Funding announcements are posted at: https://www.bja.gov/funding.aspx
Ten Charged for Drug Conspiracy Operating in Union CountyRead the Press Release
CHARLOTTE, N.C. – United States Attorney Jill Westmoreland Rose announced that 10 individuals are facing multiple federal drug charges for their involvement in a drug conspiracy operating in Union County. Nine of the 10 charged are in custody. A criminal indictment was returned on February 17, 2016, and was unsealed in federal court following today’s arrests.
C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina; Sheriff Eddie Cathey of the Union County Sheriff’s Office; and Chief Bryan Gilliard of the Monroe Police Department join U.S. Attorney Rose in making today’s announcement.
According to allegations contained in the criminal indictment, from on or about May 2003 to November 10, 2015, the defendants operated as a drug conspiracy responsible for trafficking at least 136 kilograms of cocaine and 53 kilograms of crack cocaine, primarily in and around Union County.During this morning’s round-up, law enforcement also recovered six handguns.
The 10 defendants named in the 67-count indictment are each charged with conspiracy to distribute crack cocaine and related drug offenses. They are:
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Ernest Cuevas Bivens, 34, of Waxhaw, N.C. (arrested today)
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Robert Doneil Clyburn, Jr., 26, of Monroe, N.C. (arrested today)
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Jeffrey Darrell Crowder, Jr., 29, of Wingate, N.C. (arrested today)
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Ruthus Azam Ivey, 31, of Monroe. (arrested today)
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Dario Kinta Richardson, 30, of Mineral Springs, N.C. (arrested on 2/22/16)
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Quantravis Lavar Richardson, 28, of Monroe. (arrested today)
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Reginald Donovan Richardson, 31, address unknown, (arrested today).
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Adrian Lamar Sanders, 33, of Monroe. (previously in state custody)
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Maurice Dupree Starnes, 36, of Monroe. (arrested today)
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Eric Scott Truesdale, 45, address unknown. (not arrested yet)
(See chart below for federal charges and penalties for each defendant).
The arrests are the result of mutgny investitontargeted the trafficking of cocaine and crack cocaine in and around Union County ondutedy, the Union County Sheriff’s Office, and the Monroe Police Department, with the assistance of the North Carolina State Bureau of Investigation (SBI) and the North Carolina Division of Community Corrections.
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 said, “This morning’s arrests are part of my office’s ongoing effort to combat drug trafficking throughout our district.The law enforcement agencies that participated in this OCDETF investigation joined forces to fight drug distribution and to put an end to the violence that comes with drug trafficking.”
“These individuals were the target of our joint investigation because they distributed large quantities of cocaine and crack in the Union County area. ATF will continue to work with our federal, state and local law enforcement partners to remove drug traffickers and their co-conspirators from our communities,” said ATF Special Agent in Charge Hyman.
“These federal charges should send a clear message to drug traffickers in North Carolina. The FBI and our law enforcement partners will not tolerate the damage that drugs do in our communities because some drug dealer wants to make a quick buck,” said FBI’s Special Agent in Charge Strong.
“I am grateful for all the federal, state and local agencies that assisted in this investigation,” said Sheriff Cathey.“I want to assure the public that the Sheriff’s Office will continue to partner with other agencies to eradicate drug traffickers from Union County and to make our county a safer place to live.”
“This investigation was a great team effort and I credit all agencies involved for its successful outcome. Everyone’s hard work and cooperation enabled us to conduct a thorough investigation across jurisdictional boundaries with outstanding results. I would also like to remind citizens that anyone with information concerning drug activity is encouraged to contact anonymously the Monroe Police Department at 704-282-4700,” said Chief Gilliard.
The defendants will appear in federal court before a U.S. Magistrate Judge in Charlotte. 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.
U.S. Attorney Rose thanked all the law enforcement agencies for their assistance in this ongoing investigation.
Assistant U.S. Attorney Jennifer Dillon of the U.S. Attorney’s Office in Charlotte is handling the prosecution.
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Former Accounting Manager Sentenced to Prison for Embezzling Nearly $400,000 from Huntersville-Area EmployerRead the Press Release
CHARLOTTE, N.C. – Amy Hilty, 38, formerly of Stanley, N.C. and now residing in Dalton, Ohio, was sentenced yesterday to 18 months in prison for stealing nearly $400,000 from her former employer and for tax evasion, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. ordered Hilty to serve three years of supervision following her prison term, and to pay restitution to her former employer and the IRS.
U.S. Attorney Rose is joined in making today’s announcement by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to filed documents and yesterday’s court proceedings, from 2008 to 2012, Hilty was employed as accounting manager for a company located in Huntersville, N.C. As the company’s accounting manager, Hilty’s responsibilities included preparing the company’s financial statements, maintaining QuickBooks, preparing payroll and making bank deposits. According to court records, Hilty used her access to the company’s accounting system to divert company funds to bank accounts she controlled. According to court records, Hilty covered her fraud by falsely recording the stolen funds in the company’s books and records as supplies, owner withdrawals and travel expenses, among others. In this manner, court records show that Hilty embezzled $390,156.73 from the company during the relevant time period and used the money to purchase a new home and a BMW vehicle. Court records also show that for tax years 2008 through 2011, Hilty did not file federal income tax returns, and failed to report the diverted income and her salary from the victim company, totaling $520,976.17.
Hilty will be ordered to self-report to 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 IRS-CI and the Huntersville Police Department. The prosecution for the government is being handled by Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
Leader of Marijuana Trafficking Network Sentenced to Almost 25 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – The leader of a drug trafficking network responsible for transporting more than one ton of marijuana to the Charlotte area and laundering over $1.7 million in drug proceeds was sentenced today by Chief U.S. District Judge Frank D. Whitney, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Ryan Tucker, 31, of Charlotte, was ordered to serve 292 months in federal prison, to be followed by 10 years of supervised release.
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; Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI); and Chief Kerr Putney of the Charlotte Mecklenburg Police Department.
According to filed court documents and court proceedings, from in or about 2008 to in or about 2014, Tucker used individuals operating as “couriers” to transport well in excess of 2,000 pounds of marijuana from California to the Charlotte area. Court records indicate that Tucker’s network of drug couriers included Tucker’s father, Frederick Elwood Tucker, a retired SBI narcotics agent, and an unindicted commercial pilot who used a private jet to transport a shipment. According to court records, in most instances, Tucker’s couriers transported the packaged marijuana in vehicles and commercial freight carriers.
Court documents show that Tucker also utilized his and other individuals’ bank accounts to launder more than $1.7 million of the proceeds of his drug trafficking. In court today, Tucker’s prison sentence was enhanced, based on other relevant factors, including Tucker’s possession of firearms, his leadership role, his extensive criminal history, and an incident in which he shot and killed a person who was attempting to rob his residence of drugs or drug money.
Ryan Tucker’s father, Frederick Elwood Tucker, 69, of Lead, South Dakota, was previously sentenced to 37 month in prison, and three years of supervised release for his role in the drug conspiracy.
The defendant 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.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation, codenamed “All Tuckered Out,” which is being led by HSI, IRS, and CMPD. 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 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.
U.S. Attorney Holds Roundtable Discussion with Police Chiefs, Sheriffs and Other Law Enforcement Representatives of District's Westernmost CountiesRead the Press Release
ASHEVILLE, N.C. – On Friday, February 19, 2016, U.S. Attorney Jill Westmoreland Rose convened a roundtable discussion with police chiefs, sheriffs and other law enforcement representatives of the district’s westernmost counties, to discuss law enforcement related issues impacting their communities.
The meeting was held at the Eastern Band of Cherokee Indians Justice Center in Cherokee, N.C., and was attended by C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and representatives of The Yancey County Sheriff’s Office, the Swain County Sheriff’s Office, the Jackson County Sheriff’s Office, the Haywood County Sheriff’s Office, the Macon County Sheriff’s Office, the Maggie Valley Police Department, the Brevard Police Department and the Cherokee Police Department.
“As the district’s chief federal law enforcement officer and a representative of the Justice Department, it is important to reach out to our local police departments and sheriffs’ offices to discuss some of the law enforcement issues they are currently facing,” said U.S. Attorney Rose, following Friday’s roundtable discussions. “Local law enforcement agencies know and understand the unique needs of their communities, and their input ensures that we are effectively deploying federal resources to maximize the positive impact on the lives of the people in those communities.”
Among the issues discussed was the need for additional law enforcement training; the impact of crime in small and rural communities; conducting collaborative investigations and focusing on law enforcement initiatives that deliver greater local impact; joint terrorism-related investigations; as well as the epidemic of opiate and heroin overdose deaths. Over the course of the meeting, U.S. Attorney Rose emphasized the importance of developing and maintaining strategic partnerships with local law enforcement agencies and reiterated her office’s commitment to ensuring their needs are met.
“We rely on the dedicated service and assistance of our partners in local law enforcement agencies to keep our communities safe. They are important partners and teammates and I have tremendous respect and gratitude for their professionalism, partnership and hard work. Following today’s discussion, I am confident that we all have an increased understanding of each other’s needs in accomplishing our common goal: the safety and well-being of the people in our communities.”
Tax Preparer Sentenced to 51 Months for Filing False Tax Returns and Lying on A Loan ApplicationRead the Press Release
CHARLOTTE, N.C. – Malik Shropshire, 43, of Charlotte was sentenced today to 51 months in prison for filing false tax returns and lying on a loan application, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney ordered Shropshire to serve 3 years under court supervision following his prison term, and to pay $582,933 as restitution to IRS and $7,749.24 to a credit union he defrauded.
U.S. Attorney Rose is joined by Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Malik Shropshire worked as a tax preparer and a financial advisor in the Charlotte area, and aided and assisted in the preparation of hundreds of false tax returns which were filed with the IRS. Court records show that Malik Shropshire’s sister, Nkhenge Shropshire, was the owner of “Tax Connections,” a tax return preparation business also located in Charlotte. According to court records, from 2010 through 2012, Malik Shropshire conspired with his sister and others, to execute a fraudulent tax fraud scheme involving the filing of fraudulent tax returns. Court records indicate that Malik Shropshire recruited individuals to have their tax returns prepared and filed through his sister’s business and elsewhere, promising in exchange large tax refunds. Court records show that Malik Shropshire obtained the fraudulent refunds by filing tax returns that contained fraudulent information, including false Schedule C businesses, false dependents, and false refundable education credits. As a result of using the fraudulent information, court records show that the taxpayers’ tax liabilities decreased, they received larger tax refunds, and they qualified for the Earned Income Tax Credit. According to court records, the tax loss associated with the fraudulent returns is $582,933.00.
In addition to the fraudulent tax scheme, court records show that Malik Shropshire, assisted by his sister, lied on loan applications and was able to obtain a credit card and a car loan, using fake social security numbers, false income information and false employment information. According to court records, Malik Shropshire used the auto loan to purchase a Land Rover vehicle. Subsequently, he defaulted both on the auto loan, and the credit card, after he maxed out its $10,000 limit. Malik Shropshire pleaded guilty to conspiracy to defraud the IRS and to making false statements on a loan application in June 2015.
In handing down Malik Shropshire’s sentence today, Judge Whitney emphasized that this was a very serious, sophisticated crime and noted the importance of general deterrence so “would be fraudsters” would not participate in tax refund fraud schemes.
Malik Shropshire has been in federal custody since August 2015. Upon designation of a federal facility he will be transferred to the custody of the Federal Bureau of Prisons. Nkhenge Shropshire was previously sentenced for her participation in the scheme.
The investigation was handled by IRS-CI. Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Ohio Man Sentenced to 108 Months in Prison for Money Laundering in Connection with Costa Rica-Based Telemarketing Fraud SchemeRead the Press Release
An Ohio man was sentenced to 108 months in prison for his role in laundering money for a Costa Rica-based “sweepstakes fraud” scheme that victimized U.S. residents, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.
Paul R. Toth Jr., 41, of Wintersville, Ohio, was sentenced yesterday by U.S. District Judge Robert J. Conrad Jr. of the Western District of North Carolina. In addition to imposing the prison sentence, Judge Conrad ordered Toth to pay $307,702 in restitution and to forfeit the same amount.
Toth was convicted on Aug. 4, 2015, following a two-day jury trial, of one count of conspiracy to commit money laundering and six counts of international money laundering stemming from his role in laundering money for a scheme to defraud two U.S. residents over the age of 55 out of more than $300,000 in savings. The evidence at trial showed that telemarketers in Costa Rica, who were the defendant’s co-conspirators, posed as federal agents and deceived the two victims, who were husband and wife, into believing that they had won a large monetary prize in a sweepstakes contest. The co-conspirators falsely told the victims that in order to receive the “prize,” the victims had to wire thousands of dollars to Costa Rica for a “refundable insurance fee.”
The evidence at trial showed that, between approximately November 2009 and November 2010, Toth was a U.S.-based “smasher,” an individual who arranges to pick up victims’ money and take it to the fraudulent telemarketing organization, who facilitated the laundering of funds received from the elderly victims. Specifically, according to trial evidence, Toth and others he recruited and supervised received more than $300,000 from victims and, using various individuals as senders and recipients to conceal the fraudulent nature of the transactions, wired more than $200,000 to co-conspirators in Costa Rica. The evidence further demonstrated that Toth kept the remainder as his profit.
The U.S. Postal Inspection Service, Internal Revenue Service, FBI, Federal Trade Commission and Department of Homeland Security investigated the case. Senior Litigation Counsel Patrick M. Donley and Trial Attorneys William H. Bowne and Anna Kaminska of the Criminal Division’s Fraud Section prosecuted the case.
Federal Judge Sentences to Prison Eight Men Involved in Drug Trafficking ConspiracyRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. today sentenced eight men convicted of drug trafficking charges to prison terms ranging from 12 to 110 months, 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).
The nine defendants sentenced today are:
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Noel Rondell Alexander, a/k/a “Floyd,” 26, of Charlotte – sentenced to 16 months followed by 3 years of supervised release.
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Akanni Butler, a/k/a “KB,” 30, of Charlotte – sentenced to 110 months followed by 3 years of supervised release.
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Anthony Carter, a/k/a “Sanchez,” 27, of Charlotte – sentenced to 24 months followed by 3 years of supervised release.
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Isaac Hampton, a/k/a “Ike,” 27, of Charlotte – sentenced to 12 months followed by 3 years of supervised release.
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William Kee, III, 21, of Charlotte – sentenced to 24 months followed by 3 years of supervised release.
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Rodney Smith, a/k/a “Man,” 23, of Charlotte – sentenced to 33 months followed by 3 years of supervised release.
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Antonio Sullivan, a/k/a “Pooh,” 37, of Charlotte – sentenced to 52 months followed by 3 years of supervised release.
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Vincent Thompson, 33, of Charlotte – sentenced to 12 months followed by 3 years of supervised release.
According to today’s sentencing hearings and court documents filed in the case, from about May 2014 to February 2015, the defendants were involved in a drug trafficking conspiracy. Court records show that the defendants were all part of an open-air drug market that formed in, and operated around, the area of Beatties Ford Road and Catherine Simmons Avenue in Charlotte. According to court records, the defendants carried out their illegal drug trading mainly out of the parking lots for two small strip shopping centers on Beatties Ford Road or in several other locations on Catherine Simmons Avenue, which intersects with Beatties Ford Road. According to court records, the conspirators sold drugs, mostly “crack” cocaine, all hours of the day and night and frequently engaged in acts of violence, greatly impacting the residents and business owners in this community.
Over the course of today’s sentencing hearings, Judge Conrad noted that all of the residents of that community suffered as a result of these ongoing drug sales.
The investigation was handled by the FBI’s Safe Streets Task Force, of which CMPD is a partner member. The prosecution is being handled by Assistant U.S. Attorney Dana Washington of the U.S. Attorney’s Office in Charlotte.
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Federal Judge Sentences Coin and Precious Metals Dealer and His Company for Defrauding over 380 Customers NationwideRead the Press Release
CHARLOTTE, N.C. – A coin and precious metals dealer and his company responsible for defrauding more than 380 customers of over $15 million were sentenced in federal court late Wednesday, February 17, 2016, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. sentenced Hannes Tulving, Jr., 60, of Newport Beach, California to 30 months in prison and three years of supervised release. The company was ordered to pay a $10 million fine and was placed on a probationary period of two years. Judge Cogburn reserved his ruling on the amount of restitution owed by Tulving and the company for 90 days.
Matthew Quinn, Assistant Special Agent in Charge of the United States Secret Service, Charlotte Field Division joins U.S. Attorney Rose in making today’s announcement.
According to the filed court documents and statements made in court, Hannes Tulving was the sole owner, shareholder and president of The Tulving Company, Inc. (Tulving Co.), a California-based business that sold coins, bullion, and other precious metals over the Internet. Court records show that from about August 2013 to January 2014, Tulving and his company executed a scheme to defraud customers nationwide by inducing them to place orders for coins and other merchandise knowing those orders could not be fulfilled. Court records show that the customers paid for the merchandise expecting their orders to be delivered within a certain time frame as advertised on the company’s website.
Court documents show that Tulving and his company accepted the customers’ payments but failed to deliver some of the merchandise. Instead, they diverted the customers’ payments to fulfill other customers’ orders, to pay company debts and to return the money to previous customers who did not receive their merchandise. According to court documents filed in the case, the defendants defrauded more than 380 victims nationwide of over $15 million. Hannes Tulving and the Tulving Co. each pleaded guilty to one count of wire fraud in August 2015.
In handing down Tulving’s sentence, Judge Cogburn noted what a staggering amount of money was stolen from the victims in such a short period of time. He also noted the seriousness of the offense and said that, “People were seriously harmed and their lives are affected. These people saved up money and they were hurt.”
Hannes Tulving 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.
The U.S. Secret Service handled the investigation. Assistant U.S. Attorney Kevin Zolot prosecuted this case.
Federal Judge Sentences Buncombe Co. Man to Nine Months in Prison for Tax EvasionRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today Jarrett D. Mitchem, 66, of Hendersonville, N.C. to 9 months in prison on tax evasion charges, Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Mitchem was also ordered to serve 2 years under court supervision after he is released from prison, plus an additional 3 months of home confinement. The court ordered that he pay $151,089 as restitution to the Department of Treasury.
U.S. Attorney Rose is joined in making today’s announcement Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
“Hiding money in secret offshore accounts and failing to report the income generated from those accounts is a crime that my office takes very seriously. Tax cheats like Mitchem who choose not to pay their fair share and increase the burden on honest taxpayers will be prosecuted for their actions. Citizens must ask themselves, is it worth a stint in federal prison to be a tax cheat?” said U.S. Attorney Rose.
“The Internal Revenue Service, Criminal Investigation is committed to ensuring respect for our laws; particularly with taxpayers who would use Swiss banks to conceal their foreign investments and income,” said IRS-CI Special Agent in Charge Holloman.
In February 2009, the Union Bank of Switzerland (UBS) entered into a deferred prosecution agreement with the United States on charges of conspiring to defraud the United States by impeding the IRS, by helping U.S. taxpayer clients hide funds from the IRS in secret offshore accounts. As part of its deferred prosecution agreement, UBS also agreed to provide to the government the identities of, and account information for, of persons who likely had engaged in actions designed to evade United States income tax liabilities, including Mitchem’s.
According to court records, beginning on or about November 1995, Mitchem opened a Swiss bank account at UBS. Court records show that in 2005, Mitchem transferred to his UBS account approximately $4 million he inherited from his parents, who also maintained a bank account at UBS.
Court documents indicate that in or about May 2011 an IRS revenue agent contacted Mitchem regarding the UBS accounts. According to court records, Mitchem initially withheld some information pertaining to his UBS accounts but agreed to provide the UBS bank records after he was confronted by the IRS agent. However, court records show that Mitchem only provided bank records for his parents’ UBS account and not his personal UBS account.
In November 2011, Mitchem filed his federal tax return forms for tax years 2004 through 2007, in which he failed to claim capital gains and substantial interest income from money held in his UBS bank account. Mitchem admitted in court and in filed documents that he knew his earnings should have been claimed and that he willfully omitted reporting them to avoid the payment of additional income tax. Mitchem also admitted that the tax loss associated with the unclaimed income from his Swiss bank account is over $150,000.
Mitchem will be ordered to report to the Federal Bureau of Prison upon designation of a designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by IRS-CI. The case was prosecuted by Assistant United States Attorney Don Gast of the U.S. Attorney’s Office in Asheville.
Charlotte Woman Sentenced to 10 Years in Murder-For-Hire Plot Against Her Ex-HusbandRead the Press Release
CHARLOTTE, N.C. – A federal judge today handed down a 120-month prison term to a Charlotte woman convicted of a murder-for-hire plot against her ex-husband, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Fathia Davis, a/k/a Fathia-Anna Davis, 48, was also sentenced to two years of supervised release. U.S. District Judge Robert J. Conrad, Jr. presided over the sentencing. Judge Conrad also ordered Davis to undergo mental health treatment.
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.
“Fathia Davis was willing to pay someone to take the life of another human being, and even though she had plenty of opportunities to change her mind, she never did. Instead, she made sure the men she hired to carry out the murderous plot knew who the victim was and then tried to cover up her role in orchestrating this horrendous crime. Thanks to a concerned citizen and great law enforcement coordination Davis’s true, calculated and menacing behavior was discovered, a life was spared, and now Davis will spend the next 10 years behind bars for the crime she committed, said U.S. Attorney Rose.
“Today’s sentence is a result of our proactive efforts to reduce violent crime in our communities. In this case, law enforcement was able to prevent the tragic loss of human life. We will continue to work closely with CMPD to apprehend and prosecute those who choose to commit heinous crimes like this,” said ATF Special Agent in Charge Hyman.
According to filed court documents, evidence presented at Davis’s trial and statements made during the sentencing hearing:
On or about January 2015, a concerned citizen informed law enforcement that Davis had asked him repeatedly to find her someone she could hire to kill her ex-husband. On February 15, 2015, undercover officers posing as potential hitmen met Davis in a parking lot in Charlotte. During that meeting, Davis agreed to pay the undercover officers $4,000 to shoot her ex-husband in the head. Davis drove with the undercover officers to the victim’s residence and pointed out his apartment and vehicles. Davis also told the officers that the victim had visitation with their daughter that week, and indicated that she was willing to have the victim killed during that time. Davis further told the officers that she wanted the victim out of her and her daughter’s lives, and that she had been trying for the last two years.
Using a prepaid cell phone, Davis set up a meeting on February 22, 2015, with undercover officers and gave them $500 as a down-payment for the murder. Davis told the officers that she had asked a friend withdraw the money from the bank so “it wouldn’t look funny.” Davis also told the undercover officers that she would give them the rest of the money after they had killed her ex-husband. The undercover officers told Davis that they would complete the job the following week and that she had until then to change her mind, to which she responded that she knew it was final.
On February 24, 2015, Davis met with the undercover officers and paid them $3,500 in cash after they told her that her ex-husband had been murdered. Davis asked the undercover officers where the murdered had happened and expressed no emotion. At the same meeting, the undercover men asked Davis to hand them the prepaid cell phone she had used to communicate with them. Davis did not want to hand over the phone and told them that a friend of hers was going to get rid of it. Davis reluctantly gave the phone to the undercover officers when they told her that they would break the phone.
On June 16, 2015, a federal jury convicted Davis of one count of use of interstate commerce facilities in the commission of murder-for-hire.
In announcing today’s sentence, Judge Conrad said this was not a suggested crime and went on to say that this is not the first time that Davis had tried to kill a human being, noting that he believed the defendant tried to poison her ex-husband on a previous occasion. Judge Conrad also said that, “Ms. Davis was very serious about committing this crime,” and added that the crime was “Cold, calculated, intentional and the Court has to take that into account.”
Davis has been in in federal custody since June 2015. 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.
ATF and CMPD investigated the case. Assistant U.S. Attorneys Robert Gleason and Jennifer Dillon prosecuted the case.
Charlotte Man Charged for Attempting Smuggle and Illegally Export Munitions OverseasRead the Press Release
CHARLOTTE, N.C. – A Charlotte man is facing federal charges for illegally obtaining and attempting to smuggle and export munitions to Ghana, West Africa, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. The nine count indictment against Richmond Akoto Attah, 33, of Charlotte, was unsealed today in court, charging him with one count of violating the Arms Export Control Act (AECA), one count of illegal firearms dealing, two counts of smuggling goods from the United States and four counts of making false statements to a firearms dealer.
C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; 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.
“The indictment unsealed today alleges that Attah went to great lengths to carry out and conceal his gun trafficking scheme. He falsified information to obtain firearms illegally and then tried to evade our country’s export restrictions on munitions by attempting to smuggle guns to West Africa. Fortunately, our law enforcement partners detected and intercepted Attah’s dangerous plot,” said U.S. Attorney Rose. “The consequences of gun trafficking can be grave. Firearms illegally exported overseas can end up in the wrong hands, and potentially be used for criminal acts against innocent victims, including Americans. The vigorous prosecution of gun traffickers ensures the safety not only of our citizens but people abroad,” Rose added.
“ATF is committed to using any and all resources to apprehend firearm traffickers and keep firearms out of the hands of violent criminals both domestic and abroad. The successful conclusion of this investigation could not have occurred without the outstanding partnerships we have with our law enforcement partners,” said ATF Special Agent in Charge Hyman.
“The FBI’s technical expertise and global reach in this case proves our dedication to fighting weapons smuggling both in the United States and overseas. This investigation is yet another example of what can be accomplished when we join forces with our federal law enforcement partners and work toward a common goal,” said FBI Special Agent in Charge Strong.
“Firearms regulations exist to ensure weapons crossing international borders are properly accounted for to preserve public safety and to keep them out of the hands of dangerous criminals,” said Special Agent in Charge Anna of HSI in Atlanta. “This case shows the significant consequences awaiting individuals who attempt to illegally smuggle weapons and ammunition across U.S. borders.”
“This is another example of the broad scope of U.S. Customs and Border Protection operations here in North Carolina and beyond,” said Patti Fitzpatrick, U.S. Customs and Border Protection Area Port Director in Charlotte. “CBP officers remain committed to working with local, state and federal law enforcement agencies in an effort to keep all safe.”
According to allegations contained in the indictment, beginning in at least 2013 and continuing to the present, Attah purchased numerous firearms and ammunition he intended to smuggle and illegally export to Ghana. The indictment alleges that Attah obtained the firearms by misstating on the required federal forms that he was the actual buyer and transferee of the firearms. According to the indictment, Attah is not a federally licensed firearms dealer and does not possess a license to export firearms or ammunition to Ghana or any other country.
According to allegations in the indictment, from on or about September 2013 to December 2015, Attah purchased approximately 63 firearms and 3,500 rounds of ammunition from various stores, Internet vendors and at gun shows. On or about September 4, 2015, Attah travelled from Charlotte to Ghana, returning on October 10, 2015. According to the charges, during his return trip Attah hid $30,100 dollars in his luggage, falsely declaring on his customs paperwork that he was only bringing $350 back into the United States. The indictment also alleges that from on or about November 2015, to December 13, 2015, Attah purchased approximately 22 firearms and ammunition from dealers in North Carolina and online. Attah then hid 27 firearms, including semi-automatic pistols and revolvers, inside a washing machine and a dryer, and 3,500 rounds of ammunition inside a barrel. The indictment alleges that Attah placed the washer, dryer, and barrel inside a shipping container and attempted to have it shipped from Charlotte to Ghana. The indictment alleges that U.S. Customs officers recovered the firearms and ammunition before it was shipped outside the United States.
Attah had his initial appearance in federal court today. The penalty for violating the AECA is a maximum of 20 years in prison and a $1 million fine or twice the amount of the criminally derived proceeds, whichever is greater. The penalty for illegal firearms dealing is a maximum of five years in prison and a $250,000 fine. The penalty for smuggling goods from the U.S. is a maximum of 10 years in prison and a $250,000 fine per count, and the penalty for making false statements in connection with the acquisition of a firearm is a maximum of 10 years in prison and a $250,000 fine per count. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceeding.
ATF, FBI, HSI and CBP are handling the investigation. In making today’s announcement U.S. Attorney Rose also thanked the North Carolina Highway Patrol, the Charlotte Mecklenburg Police Department and the Chatham County Sheriff's Office in Georgia for their assistance in this case.
Assistant United States Attorneys Michael Savage and Kevin Zolot of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Buncombe Co. Man Sentenced for Possession of Firearm by A Convicted FelonRead the Press Release
ASHEVILLE, N.C. – U.S. Attorney Jill Westmoreland Rose announced that a Buncombe County man convicted of possession of a firearm by a convicted felon was sentenced today in Asheville by U.S. District Judge Martin Reidinger. Jeremy Scott Powell, 31, of Leicester, N.C. was ordered to serve 63 months in prison, followed by three years of supervised release upon completion of the prison term.
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 Sheriff Van Duncan, of the Buncombe County Sheriff’s Office.
According to filed court documents and statements made in court, on September 4, 2014, law enforcement conducted a traffic stop of the car Powell was driving, after it was determined that the license plate of Powell’s car belonged to another vehicle. Following a search of the vehicle, court records show that law enforcement recovered a semi-automatic handgun, which was loaded with 13 rounds of ammunition. According to documents filed in the case, Powell is prohibited from possessing a firearm, stemming from his 2008 North Carolina conviction of two counts of drug trafficking and one count of possession of a firearm by a felon.
Powell has been in federal custody since September 2014. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF and the Buncombe County Sheriff’s Office. The case was prosecuted by the U.S. Attorney’s Office in Asheville.
Charlotte Man Sentenced to More Than 10 Years in Prison on Drug and Firearm ChargesRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. ordered Jerry Lee Edwards, 30, of Charlotte, to serve 130 months in prison and three years of supervised release on drug and firearm charges, 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 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 filed court documents and statements made in court, on August 15, 2013, while investigating criminal activity near the Sugar Creek/Interstate 85 corridor, law enforcement arrested Edwards, who was in a vehicle parked in a hotel parking lot in the area. According to court records, at the time of his arrest, Edward possessed cocaine, crack cocaine, and a set of digital weight scales. Law enforcement also recovered three firearms, one of which was later determined to be stolen. According to court records, Edwards has a prior North Carolina conviction of robbery with a dangerous weapon and is prohibited from possessing a firearm.
Court records show that in May 2014, Edwards was found guilty by a bench trial of one count of possession with intent to distribute crack cocaine, one count of possession with intent to distribute cocaine, one count of possession of a firearm during and in relation to a drug trafficking crime and one count of possession of a firearm by a convicted felon.
In handing down today’s sentence, Judge Cogburn stated that, “Edwards had a very serious criminal record, and a 130-month sentence will hold him responsible for his criminal actions. Individuals with that many firearms in their vehicle are up to no good.”
Edwards has been in federal custody since August 2013. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF and CMPD. The case was handled by Assistant United States Attorney Sanjeev Bhasker of the U.S. Attorney’s Office in Charlotte.
Asheville, N.C. Man Sentenced to More Than 13 Years in Prison for Armed Robbery of Fast Food RestaurantRead the Press Release
ASHEVILLE, N.C. – On Thursday, February 11, 2016, U.S. District Judge Martin Reidinger sentenced Gordie Leroy Penson, 38, of Asheville, to 161 months in prison for the August 2014 armed robbery of a fast food restaurant, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also sentenced Penson to five years of supervised release.
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 Tammy Hooper of the Asheville Police Department.
According to filed court documents, evidence presented at Penson’s trial and yesterday’s sentencing hearing, on August 2, 2014, Penson robbed at gunpoint a Bojangle’s restaurant located on Merrimon Avenue in Asheville. Court records show that Penson entered the restaurant at approximately 9:55 in the evening and proceeded to demand money, first from the drive-thru cashier, threatening to shoot her if she did not open the cash drawer. According to court records, Penson then escorted the manager to the store’s safe and fired his gun once when the manager was unable to open the safe on the first attempt. According to court records, Penson fled the restaurant with $1,019 in cash.
A federal jury convicted Penson of one count of Hobbs Act Robbery, one count of unlawful use and carry of a firearm in furtherance of a crime of violence and one count of possession of a firearm by a convicted felon. According to trial evidence and yesterday’s sentencing hearing, Penson has prior convictions in North Carolina for robbery with a dangerous weapon.
Penson has been in federal custody since April 2015. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF and the Asheville Police Department. The case was prosecuted by Assistant United States Attorney John Pritchard of the U.S. Attorney’s Office in Asheville.
Twelve Methamphetamine Traffickers Sentenced to PrisonRead the Press Release
STATESVILLE, N.C. – U.S. District Judge Richard L. Voorhees handed down prison terms ranging from 21 to 120 months to 12 methamphetamine traffickers, 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 Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas; 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 C. J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division
The 12 defendants sentenced today and yesterday in U.S. District Court in Statesville are:
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Chang Cheng Vang, 20, of Hickory, NC, was sentenced to 120 months, followed by 5 years of supervised release. (5:15-cr-38)
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Christopher Dwayne Helton, 31, of Connelly Springs, NC, was sentenced to 120 months, followed by 5 years of supervised release. (5:15-cr-25)
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Shannon Marie Williams Greene, 37, of Hickory, NC, was sentenced to 105 months, followed by 3 years of supervised release. (5:15-cr-49)
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Moises Valdovinos, 33, of Mexico, was sentenced to 97 months, followed by 5 years of supervised release. (5:14-cr-66)
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Adrian Demarcus Perkins, 21, of Montezuma, GA, was sentenced to 97 months, followed by 3 years of supervised release. (5:15-cr-53)
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Juan Jesus Santellan, 24, of Hickory, NC, was sentenced to 78 months, followed by 3 years of supervised release. (5:15-cr-47)
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Bobby James Testerman, 31, of Jefferson, NC, was sentenced to 60 months, followed by 4 years of supervised release. (5:15-cr-42)
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Jamie Martinez-Benitez, 27 of Mexico, was sentenced to 60 months, followed by 4 years of supervised release. (5:15-cr-62)
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Travis Layden Bare, 39, of West Jefferson, was sentenced to 60 months, followed by 4 years of supervised release. (5:15-cr-52)
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Anthony Ray Mauney, 30, of Maiden, NC, was sentenced to 51 months, followed by 5 years of supervised release. (5:15-cr-40)
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Jose Luis Zavala, 20, of Hickory, NC, was sentenced to 46 months, followed by 3 years of supervised release. (5:14-cr-60)
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Gerardo Espino Albarran, 25, of Mexico, was sentenced to 21 months, followed by 1 year of supervised release. (5:14-cr-66)
The sentencings are the result of two parallel and coordinated Organized Crime Drug Enforcement Task Force (OCDETF) investigations, codenamed “Dixie Crystal” and “Lay Low,” handled by HSI, DEA, and ATF, with the assistance of the North Carolina State Bureau of Investigation, North Carolina State Highway Patrol, Alexander County Sheriff’s Office, Alleghany County Sheriff’s Office, Ashe County Sheriff’s Office, Boone Police Department, Caldwell County Sheriff’s Office, Catawba County Sheriff’s Office, Hickory Police Department, Iredell County Sheriff’s Office, Lenoir Police Department, Lincoln County Sheriff’s Office, Mooresville Police Department, Pineville Police Department, Statesville Police Department, Burke County Task Force, and other law enforcement agencies throughout North Carolina and Texas, Georgia, and Tennessee.
According to court documents, to date, more than 80 individuals have been convicted as a result of the two related investigations. Court records show that the drug trafficking organizations involved have trafficked methamphetamine worth millions of dollars. Over the course of the investigation, law enforcement seized more than 10 kilograms of crystal methamphetamine, $100,000 in U.S. currency and other assets, and numerous firearms.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
In making today’s announcement U.S. Attorney Rose thanked all the law enforcement agencies for their investigative efforts. The prosecution is being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
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Leader of Drug Ring Sentenced to More Than 8 Years in Prison for Trafficking CocaineRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. ordered Mateo Meraz, 42, of Rockford, Illinois and leader of a drug ring responsible for trafficking cocaine to the Charlotte area to serve 97 months in prison and three years of supervised release, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Meraz pleaded guilty in November 2015 to one count of conspiracy to distribute and to possess with intent to distribute cocaine.
Mateo Meraz’s conspirators, Sarah Christine Lapp, 38, of Jonesville, Wisconsin, and his son, Hector Meraz, 23, also of Rockford, have each pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine and are currently awaiting sentencing.
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, Steven M. Watkins, Director of the North Carolina Division of Motor Vehicles License and Theft Bureau (NC DMV L&T), and Chief Kerr Putney of the Charlotte Mecklenburg Police Department.
According to filed court documents and today’s sentencing hearing, Mateo Meraz was the leader of a Drug Trafficking Organization (DTO) responsible for trafficking cocaine from Chicago, Illinois to the Charlotte area. Court records show that in October 2015, Mateo Meraz, Hector Meraz and Sarah Lapp travelled to Charlotte to deliver approximately nine kilograms of cocaine with a street value of $476,145. According to court records, the cocaine had been packaged in eighteen (18) bundles and was prepared and ready for sale. To avoid detection, the conspirators transported the cocaine hidden in a secret compartment under the rear seat of the vehicle. Law enforcement arrested the three defendants shortly after the drug delivery had been made.
In announcing the sentence, Judge Conrad noted that “The defendant is an illegal alien that continues to return to the United States and traffic drugs. A 97-month prison sentence will adequately protect the community.”
Mateo Meraz has been in custody since October 2014 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. Mateo Meraz is an undocumented alien and will be deported to Mexico upon completion of his sentence.
The case was investigated by DEA, NCDMV&T and CMPD. Assistant U.S. Attorney Sanjeev Bhasker of the U.S. Attorney’s office in Charlotte is in charge of the prosecution.
Graham Co. Man Sentenced to More Than 6 Years in Prison for Possessing Child PornographyRead the Press Release
ASHEVILLE, N.C. – On Thursday, February 11, 2016 U.S. District Judge Martin Reidinger sentenced Mark Alan Tygart, of Robbinsville, N.C. to 76 months in prison on possession of child pornography charges, 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, Alan K. Flora Special Agent in Charge of the State Bureau of Investigation (SBI) Computer Crimes Unit, and Sheriff Danny Milsaps of the Graham County Sheriff’s Office.
In October 2015, Tygart pleaded guilty to one count of possession of child pornography. According to court documents and statements made in court, in November 2014, an undercover officer discovered Tygart posting links to child pornography in an online chat room where Tygart went by the name “twerk.” In December 2014, a search warrant was executed at Tygart’s residence in a joint operation with the FBI, SBI, and Graham County Sheriff’s Office detectives. Computer forensic analysis of seized devices revealed hundreds of images and videos of child pornography.
The defendant 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 case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Arden, N.C. Man Sentenced to More Than Six Years in Prison for Federal Firearms ViolationRead the Press Release
ASHEVILLE, N.C. – Kenneth Dewayne Sherlin, a/k/a Richard Dale Lawrence, Jr., 32, of Arden, N.C. was sentenced in federal court today to 77 months in prison for a federal firearms violation, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also sentenced Sherlin to three years of supervised release.
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 Sheriff Van Duncan of the Buncombe County Sheriff’s Office.
According to filed court documents and today’s hearing, on or about October 10, 2014, a deputy with the Buncombe County Sheriff’s Office conducted a traffic stop of the car Sherlin was driving. During the traffic stop, law enforcement recovered three firearms from inside the vehicle, including a sawed-off shotgun, and ammunition. Law enforcement also discovered that Sherlin had an outstanding arrest warrant for carrying a concealed weapon. According to statements made in court today, Sherlin is prohibited from possessing a firearm due to prior convictions in North Carolina, including discharging a weapon into occupied property, two counts of robbery with a dangerous weapon, one count of second degree kidnapping, one count of conspiracy to commit robbery with a dangerous weapon and multiple breaking and entering and larceny convictions.
In June 2015, Sherlin pleaded guilty to one count of possession of an unregistered firearm, that being the sawed-off shotgun. He has been in federal custody since October 2014. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by ATF and the Buncombe County Sheriff’s office. The case was prosecuted by Assistant United States Attorney John Pritchard of the U.S. Attorney’s Office in Asheville.
Registered Sex Offender Charged with Online Enticement of A Minor Is Sentenced to More Than 19 YearsRead the Press Release
STATESVILLE, N.C. – A registered sex offender was sentenced today by U.S. District Judge Richard Voorhees to serve 235 months in a federal prison on charges of online enticement of a minor, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Voorhees also ordered Samuel Henry Vinci, Jr., 55, of Granite Falls, N.C. to continue to register as a sex offender and to serve the rest of his life under court supervision after he is released from prison.
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 Sheriff Alan C. Jones, of the Caldwell County Sheriff’s Office.
According to court records, Vinci was convicted in 1998 of two counts of second degree rape and served 11 years in prison. After serving his prison term, Vinci was required to register as a sex offender and to inform law enforcement about any online identifiers he used, including e-mail addresses.
Court records show that in September 2014, the Caldwell County Sheriff’s Office became aware that Vinci was operating a social media webpage under a fictitious name. According to court records, using his fake social media identity, Vinci befriended an individual he believed to be a 15 year old female, but unknowingly made contact with law enforcement instead. Court records show that over the course of multiple online exchanges, Vinci asked the individual he thought was a minor to engage in sexual acts. During those exchanges, Vinci also repeatedly tried to verify the minor’s identity, sent her photos of himself, and gave her instructions on how to delete evidence of their conversations to avoid detection. According to court records, eventually Vinci asked the individual he believed to be a minor female to meet with him alone. Law enforcement arrested Vinci in when he drove to the agreed location to meet the 15 year old girl.
Vinci pleaded guilty in October 2015 to one count of online enticement of a minor and is currently in federal custody. He will be transferred to custody of the Federal Bureau of Prisons upon designation of a federal facility. Federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and the Caldwell County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Charlotte Man Sentenced to over 10 Years for Armed Robbery and CarjackingRead the Press Release
CHARLOTTE, N.C. – Earlier today, U.S. District Judge Max O. Cogburn, Jr. handed down a lengthy prison term to a Charlotte man involved in a 2014 armed robbery and carjacking, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Cogburn ordered Davonte Antonio Smith, 24, of Charlotte to serve 121 months in prison and two years of supervised release.
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.
According to filed court documents and court proceedings, on or about June 25, 2016, at approximately 8:30 p.m., Smith and a conspirator robbed and carjacked a victim in the parking lot of a Sam’s Mart, located in Charlotte, N.C. Court records show that Smith made arrangements to meet the victim to buy a pound of marijuana from him in exchange for $3,800. Court records show that Smith and his conspirator instead assaulted and robbed the victim at gunpoint, and Smith fled the scene in the victim’s vehicle. According to court records, Smith drove at high speeds to try to elude the police before being apprehended.
Smith pleaded guilty in May 2015 to one count armed robbery and one count of carjacking. In handing down the sentence today, Judge Cogburn stated that, “These violent crimes need to be stopped-must be stopped.”
Smith 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 the ATF and CMPD. Assistant U.S. Attorney Robert Gleason of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
Charlotte Area Tax Return Preparer Sentenced to 27 Months for $2.6 Million Tax Return FraudRead the Press Release
CHARLOTTE, N.C. – A Charlotte-area tax return preparer was handed down a 27-month prison sentenced today for aiding or assisting in the filing of a false claim for tax refund, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Fitzroy E. Lawrence, 48, of Charlotte, was also ordered by U.S. District Judge Max O. Cogburn to serve 2 years under court supervision and to pay $2,635,641.00 as restitution to the Internal Revenue Service.
U.S. Attorney Rose is joined in making today’s announcement by Thomas J. Holloman, III, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to the filed court documents and today’s sentencing hearing, for tax years 2008 through 2011, 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. Court records show that many of the filed fraudulent tax returns included false wages and false dependent information. In June 2015, Lawrence pleaded guilty to one count of aiding or assisting in filing a false claim against the United States.
Judge Cogburn noted that that conduct in this case was “egregious” and emphasized the importance for all Americans to pay their fair share of taxes.
Lawrence will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility. All federal sentences are served without the possibility of parole.
IRS-CI investigated the case. Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution. Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
Macon County Federal Firearms Licensee Sentenced to 2.5 Years in Prison for Selling Firearms to A Prohibited PersonRead the Press Release
ASHEVILLE, N.C. – A Macon County federal firearms licensee was sentenced today to a 30-month prison term for selling firearms to a prohibited person, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Philip Nelson Elliott, 55, of Franklin, N.C., was also ordered by U.S. District Judge Max O. Cogburn, Jr. to serve three years under court supervision following his prison term.
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.
“Federally-licensed firearms dealers are expected to be one of our first lines of defense to deprive convicted felons from purchasing firearms. Recent events underscore the importance of keeping guns out of the wrong hands. My office will vigorously prosecute gun dealers who put personal gain ahead of public safety,” said U.S. Attorney Rose.
“This case is an example of the types of investigations ATF conducts on a daily basis to keep our communities safe. ATF will continue to work with our investigative partners to keep firearms out of the hands of criminals and aggressively seek to bring individuals who provide firearms to criminals to justice,” said ATF Special Agent in Charge Hyman.
According to the filed court documents and today’s sentencing hearing, Philip Elliott was a federal firearms licensee who operated “Mountain Top Coins, Guns and Ammo” (Mountain Top), a firearms business located in Franklin. Court records show that Philip Elliott’s brother, Donald Eugene Elliott, also worked at Mountain Top. According to court records, from March to July 2014, Philip Elliott sold multiple firearms to a convicted felon and was therefore prohibited from possessing a firearm. Court records show that in addition to selling the firearms, Philip Elliott discussed selling the felon rocket-propelled grenade launchers and told the felon he was willing to buy stolen goods, including stolen firearms.
While executing a search warrant at Mountain Top, ATF agents seized approximately 20 firearms in the store which were “off the books,” meaning they were not included in the ATF Acquisition and Disposition Records as required of federal firearms licensees. Philip Elliott pleaded guilty in July 2015 to one count of selling a firearm to a prohibited person.
Law enforcement also seized seven firearms and ammunition from Donald Elliott’s residence. Donald Elliott’s previous felony conviction prohibits him from owning a firearm. He pleaded guilty to one count of felon in possession of a firearm and was sentenced in December 2015 to six months in prison and two years of supervised release.
The investigation was handled by ATF. Assistant U.S. Attorney Don Gast of the U.S. Attorney’s Office in Asheville prosecuted the case.
North Carolina Man Indicted for Attempting to Provide Material Support to ISILRead the Press Release
A North Carolina man has been charged with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and related offenses, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division.
The seven-count indictment was unsealed in federal court today, charging Justin Nojan Sullivan, 19, of Morganton, North Carolina, with attempting to provide material support to ISIL; receipt of a silencer in interstate commerce with intent to commit a felony; receipt and possession of an unregistered firearm; concealment and storage of a stolen firearm; use of interstate facilities in the attempted commission of a murder-for-hire; and two counts of making false statements to FBI agents.
“According to allegations in the indictment, Sullivan attempted to provide material support to ISIL by acquiring weapons and planning to conduct deadly attacks on our soil,” said Assistant Attorney General Carlin. “Countering threats to the safety of the American people is the highest priority of the National Security Division, and we will continue to hold accountable those who seek to provide material support to designated foreign terrorist organizations.”
“As alleged in the indictment, Sullivan pledged allegiance to ISIL, a designated foreign terrorist organization, and planned to carry out assassinations and mass shootings against innocent people,” said U.S. Attorney Rose. “Detecting and prosecuting violent extremists is a priority for my office and we will work closely with our federal, state and local law enforcement partners to ensure that potential terrorist attacks are foiled, would-be assassins are brought to justice and Americans are kept from harm’s way.”
“Justin Sullivan had elaborate plans to kill hundreds of innocent people to show his support for the terrorist organization, ISIL,” said Special Agent in Charge Strong. “During the course of our investigation evidence was uncovered linking Sullivan to John Bailey Clark’s murder six months earlier. Any loss of life is tragic; due to the work of the FBI and our law enforcement partners, other planned attacks were thwarted preventing more violence.”
According to allegations contained in the indictment and information in related court filings, starting no later than September 2014, Sullivan watched violent ISIL attacks on the Internet, such as beheadings, after converting to Islam. The indictment alleges that Sullivan openly expressed support for ISIL in his home and destroyed religious items that belonged to his parents. The indictment also alleges that beginning no later than June 6, 2015, Sullivan attempted to provide material support to ISIL by planning terrorists attacks and discussed those plans on social media with an undercover FBI employee (UCE), who Sullivan attempted to recruit to join in such attacks.
As alleged in the federal indictment, Sullivan told the UCE via social media that it was better to remain in the United States to support ISIL than to travel. Sullivan suggested that the UCE obtain weapons and told the UCE that he was planning to buy a semi-automatic AR-15 rifle at an upcoming gun show in Hickory, North Carolina. On or about June 20, 2015, Sullivan attempted to purchase hollow point ammunition to be used with the weapon(s) he intended to purchase.
The indictment alleges that Sullivan had researched on the Internet how to manufacture firearm silencers and asked the UCE to build functional silencers that they could use to carry out the planned attacks. The indictment further alleges that Sullivan told the UCE he planned to carry out his attack in the following few days at a concert, bar or club, where he believed as many as 1,000 people would be killed using the assault rifle and silencer.
According to allegations in the indictment, on or about June 19, 2015, the silencer, which was built according to Sullivan’s instructions, was delivered to him at his home in North Carolina, where Sullivan’s mother opened the package. The indictment alleges that Sullivan took the silencer from his mother and hid it in a crawl space under his house. When Sullivan’s parents questioned him about the silencer, Sullivan, believing that his parents would interfere with his plans to carry out an attack, offered to compensate the UCE to kill them.
On June 19, 2015, Sullivan was arrested at his parents’ home, where law enforcement also executed a search for the silencer and other items. The indictment alleges that law enforcement interviewed Sullivan on separate occasions and that Sullivan made false statements pertaining to the weapons in his possession and his involvement in the murder of his neighbor, John Bailey Clark, 74. In particular, according to the indictment, Sullivan was asked on June 19, 2015, if he had a rifle, to which he answered no. However, the FBI’s search found a .22 rifle, a black ski mask and a lock pick kit hidden in the crawl space with the silencer. The indictment alleges that on June 20, 2015, Sullivan admitted that he had stolen the rifle from his father’s gun cabinet and hid it in the crawl space. Forensic testing shows that the .22 rifle hidden by Sullivan was used to murder Clark.
The District Attorney’s Office for North Carolina’s 25th Prosecutorial District, which includes Burke, Caldwell and Catawba Counties, is handling North Carolina’s prosecution of Sullivan for Clark’s murder.
Sullivan is currently in federal custody and has waived arrangement on the federal charges. Trial is set for Feb. 22, 2016, before U.S. District Judge Martin Reidinger of the Western District of North Carolina.
The charge of attempting to provide material support to a designated foreign organization carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of receiving a silencer in interstate commerce with intent to commit a felony carries a maximum potential penalty of 10 years in prison and a fine of $250,000. The charge of receipt and possession of an unregistered firearm carries a maximum potential penalty of 10 years in prison and a fine of $10,000. The charge of possession, concealment and storage of a stolen firearm carries a maximum prison term of 10 years and a $250,000 fine. The charge of using interstate facilities in the attempted commission of a murder-for-hire carries a maximum prison term of 10 years in prison and a $250,000 fine. Each count of making a false statement to an agency of the United States carries a maximum prison term of up to eight years in prison and a $250,000 fine.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, Assistant Attorney General Carlin and U.S. Attorney Rose thanked District Attorney David Learner for his office’s continued assistance and coordination. Both also praised the investigative efforts of the FBI, the Burke County Sheriff’s Office and the North Carolina State Bureau of Investigation in this case. Assistant Attorney General Carlin and U.S. Attorney Rose also thanked the U.S. Postal Inspection Service’s Charlotte Division, the U.S. Secret Service, the North Carolina Highway Patrol and the Hickory Police Department for their assistance in this investigation.
The case is being prosecuted by Assistant U.S. Attorney Michael E. Savage of the Western District of North Carolina and Trial Attorney Gregory Gonzalez of the National Security Division’s Counterterrorism section.
Justin Nojan Sullivan Indictment
North Carolina Man Indicted for Attempting to Provide Material Support to ISILRead the Press Release
CHARLOTTE, N.C. – A North Carolina man has been charged with attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and related offenses, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division.
The seven-count indictment was unsealed in federal court today, charging Justin Nojan Sullivan, 19, of Morganton, North Carolina, with attempting to provide material support to ISIL; receipt of a silencer in interstate commerce with intent to commit a felony; receipt and possession of an unregistered firearm; concealment and storage of a stolen firearm; use of interstate facilities in the attempted commission of a murder-for-hire; and two counts of making false statements to FBI agents.
“According to allegations in the indictment, Sullivan attempted to provide material support to ISIL by acquiring weapons and planning to conduct deadly attacks on our soil,” said Assistant Attorney General Carlin. “Countering threats to the safety of the American people is the highest priority of the National Security Division, and we will continue to hold accountable those who seek to provide material support to designated foreign terrorist organizations.”
“As alleged in the indictment, Sullivan pledged allegiance to ISIL, a designated foreign terrorist organization, and planned to carry out assassinations and mass shootings against innocent people,” said U.S. Attorney Rose. “Detecting and prosecuting violent extremists is a priority for my office and we will work closely with our federal, state and local law enforcement partners to ensure that potential terrorist attacks are foiled, would-be assassins are brought to justice and Americans are kept from harm’s way.”
“Justin Sullivan had elaborate plans to kill hundreds of innocent people to show his support for the terrorist organization, ISIL,” said Special Agent in Charge Strong. “During the course of our investigation evidence was uncovered linking Sullivan to John Bailey Clark’s murder six months earlier. Any loss of life is tragic; due to the work of the FBI and our law enforcement partners, other planned attacks were thwarted preventing more violence.”
According to allegations contained in the indictment and information in related court filings, starting no later than September 2014, Sullivan watched violent ISIL attacks on the Internet, such as beheadings, after converting to Islam. The indictment alleges that Sullivan openly expressed support for ISIL in his home and destroyed religious items that belonged to his parents. The indictment also alleges that beginning no later than June 6, 2015, Sullivan attempted to provide material support to ISIL by planning terrorists attacks and discussed those plans on social media with an undercover FBI employee (UCE), who Sullivan attempted to recruit to join in such attacks.
As alleged in the federal indictment, Sullivan told the UCE via social media that it was better to remain in the United States to support ISIL than to travel. Sullivan suggested that the UCE obtain weapons and told the UCE that he was planning to buy a semi-automatic AR-15 rifle at an upcoming gun show in Hickory, North Carolina. On or about June 20, 2015, Sullivan attempted to purchase hollow point ammunition to be used with the weapon(s) he intended to purchase.
The indictment alleges that Sullivan had researched on the Internet how to manufacture firearm silencers and asked the UCE to build functional silencers that they could use to carry out the planned attacks. The indictment further alleges that Sullivan told the UCE he planned to carry out his attack in the following few days at a concert, bar or club, where he believed as many as 1,000 people would be killed using the assault rifle and silencer.
According to allegations in the indictment, on or about June 19, 2015, the silencer, which was built according to Sullivan’s instructions, was delivered to him at his home in North Carolina, where Sullivan’s mother opened the package. The indictment alleges that Sullivan took the silencer from his mother and hid it in a crawl space under his house. When Sullivan’s parents questioned him about the silencer, Sullivan, believing that his parents would interfere with his plans to carry out an attack, offered to compensate the UCE to kill them.
On June 19, 2015, Sullivan was arrested at his parents’ home, where law enforcement also executed a search for the silencer and other items. The indictment alleges that law enforcement interviewed Sullivan on separate occasions and that Sullivan made false statements pertaining to the weapons in his possession and his involvement in the murder of his neighbor, John Bailey Clark, 74. In particular, according to the indictment, Sullivan was asked on June 19, 2015, if he had a rifle, to which he answered no. However, the FBI’s search found a .22 rifle, a black ski mask and a lock pick kit hidden in the crawl space with the silencer. The indictment alleges that on June 20, 2015, Sullivan admitted that he had stolen the rifle from his father’s gun cabinet and hid it in the crawl space. Forensic testing shows that the .22 rifle hidden by Sullivan was used to murder Clark.
The District Attorney’s Office for North Carolina’s 25th Prosecutorial District, which includes Burke, Caldwell and Catawba Counties, is handling North Carolina’s prosecution of Sullivan for Clark’s murder.
Sullivan is currently in federal custody and has waived arrangement on the federal charges. Trial is set for Feb. 22, 2016, before U.S. District Judge Martin Reidinger of the Western District of North Carolina.
The charge of attempting to provide material support to a designated foreign organization carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The charge of receiving a silencer in interstate commerce with intent to commit a felony carries a maximum potential penalty of 10 years in prison and a fine of $250,000. The charge of receipt and possession of an unregistered firearm carries a maximum potential penalty of 10 years in prison and a fine of $10,000. The charge of possession, concealment and storage of a stolen firearm carries a maximum prison term of 10 years and a $250,000 fine. The charge of using interstate facilities in the attempted commission of a murder-for-hire carries a maximum prison term of 10 years in prison and a $250,000 fine. Each count of making a false statement to an agency of the United States carries a maximum prison term of up to eight years in prison and a $250,000 fine.
The charges contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, Assistant Attorney General Carlin and U.S. Attorney Rose thanked District Attorney David Learner for his office’s continued assistance and coordination. Both also praised the investigative efforts of the FBI, the Burke County Sheriff’s Office and the North Carolina State Bureau of Investigation in this case. Assistant Attorney General Carlin and U.S. Attorney Rose also thanked the U.S. Postal Inspection Service’s Charlotte Division, the U.S. Secret Service, the North Carolina Highway Patrol and the Hickory Police Department for their assistance in this investigation.
The case is being prosecuted by Assistant U.S. Attorney Michael E. Savage of the Western District of North Carolina and Trial Attorney Gregory Gonzalez of the National Security Division’s Counterterrorism section.
Three Drug Traffickers Sentenced to at Least 10 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – Three drug traffickers were sentenced to 10 years or more, for their involvement in two separate Organized Crime Drug Enforcement Task Force (OCDETF) investigations, 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); Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HIS) 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).
Those sentenced by U.S. District Judge Robert J. Conrad, Jr. are:
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Pablo Munoz, 32, of Asheboro, N.C. was sentenced to 120 months, followed by five years of supervised release, for trafficking between 15 and 50 kilograms of cocaine.
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Don C. Hill, 41, of Gastonia, was sentenced to 132 months, followed by five years of supervised release, for trafficking between 10 and 30 ounces of crack cocaine.
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Roberto Mendoza, 28, of South El Monte, California, was sentenced to 121 months, followed by five years of supervised release, for trafficking one to three tons of marijuana.
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.
Munoz and Hill are part of an OCDETF investigation codenamed “Fox Run,” which has resulted in the conviction of more than 40 defendants on cocaine and crack cocaine trafficking, money laundering, and firearms charges. 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.
Mendoza is part of OCDETF “Goldilocks,” which has resulted in the conviction of more than 65 defendants on marijuana trafficking, money laundering, and firearms charges, which is being led by HSI and CMPD, with assistance from the United States Marshals Service, Pineville Police Department, Cornelius Police Department, Mooresville Police Department, North Carolina Department of Alcohol Law Enforcement, and Los Angeles Sheriff’s Office.
The ongoing investigation and prosecution for the government in both OCDETF investigations is being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
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Federal Drug Initiative Nets 19 Arrested on Federal and State Drug OffensesRead the Press Release
CHARLOTTE, N.C. – United States Attorney Jill Westmoreland Rose announced that during an early morning round-up FBI agents and Charlotte-Mecklenburg police officers arrested 19 individuals charged with federal and state drug offenses. A federal criminal indictment returned on January 20, 2016, and unsealed today, names 20 defendants charged with multiple federal drug related offenses. Eight others will be prosecuted in state court, bringing the total number of those charged in connection with the federal drug initiative to 28.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina and Chief Kerr Putney, of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney Rose in making today’s announcement.
The six-month joint federal and local investigation aimed at reducing drug distribution and drug related criminal activity and increasing community safety in Mecklenburg County was focused on the Belmont neighborhood in Charlotte.
“This morning’s arrests are the result of a joint law enforcement investigation targeting an area of Charlotte that has been plagued by drug trafficking and drug-related criminal activity. I want to thank our law enforcement partners for working together in this initiative to identify and remove the individuals who continue to pose a threat to our community,” said U.S. Attorney Rose in making today’s announcement. “Also, let this be a warning, that as we work with our law enforcement partners to combat drug activity and violent crime throughout Mecklenburg County, we are keenly focused on specific neighborhoods where crime statistics are significant. To the law abiding citizens who reside in these areas, we will continue to work hard to restore your neighborhoods as places where you can live and prosper. To those who engage in criminal activity, our message is clear: we will not sit on the sidelines while you continue to pollute our neighborhoods with drugs and crime,” Rose added.
“The danger and chaos that drugs create in our local communities eats away at the ability of our citizens to live their lives peacefully. These arrests are an outstanding example of what federal and local law enforcement can accomplish when we work together to target the individuals who threaten the safety and stability of our neighborhood streets,” said FBI’s SAC Strong.
“The Charlotte-Mecklenburg Police Department will continue our relentless pursuit of community safety. We remain focused in our efforts and continue to work with our partner agencies to ensure neighborhoods like Belmont remain safe,” said Chief Putney.
The 20 defendants named in the federal indictment are each charged with conspiracy to distribute crack cocaine and related drug offenses. They are:
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Emmanuel Gooding, 39, of Charlotte. (not arrested yet)
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Daniel Simpson, 32, of Charlotte. (arrested)
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James Dixon, 48, of Charlotte. (arrested)
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Vinton Teeter, 35, of Charlotte. (arrested)
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Ricki Foster, 35, of Charlotte. (arrested)
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Lamont Davis, 39, of Charlotte. (arrested)
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Johnny Byrd, 38 of Charlotte. (arrested)
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Jasper Toney, Jr. 24, of Charlotte. (arrested)
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Miguel Mantic Perry, 36, of Charlotte. (not arrested yet)
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Tony William Robinson, 36, of Charlotte. (arrested)
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Derek Murphy, 41, of Charlotte. (arrested)
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Donald Jenkins, 62, of Charlotte. (arrested)
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Shawnda Craig-Houston, 41, of Charlotte. (arrested)
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Rodney Scott Smith, 45, of Charlotte. (arrested)
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Thomas Pearce, 26, of Charlotte. (not arrested yet)
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Mckinza Feaster, 26, of Charlotte. (previously in federal custody)
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Andrea Hines, 45, of Charlotte. (arrested)
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Quanard Harrison, 38, of Charlotte. (arrested)
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Kenneth Wallace, 23, of Charlotte. (arrested)
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James Lamont Walker, 27 of Charlotte (arrested)
Sixteen of the 20 federal defendants were arrested this morning and one was already in federal custody. Federal arrest warrants have been issued against Gooding, Perry and Pearce.
Today’s initiative netted eight additional defendants facing state drug charges. The three arrested earlier today are Cleveland Little, Michael Young, Rochilla Harrell. Three more individuals, Dontaie Patton, Tanisha Harris, and Charles Vaughn, Jr. are still wanted by law enforcement. Brandon Monk and Rysuon Norris, were already in state custody on separate charges.
“My office is grateful for the strong working relationship we enjoy with the U.S. Attorney’s Office, the FBI and CMPD as we all work together to keep our communities safe from illegal drugs and criminal activity associated with those drugs,” said Andrew Murray, District Attorney for Mecklenburg County, whose office will be handling the prosecution of those charged with state offenses.
In making today’s announcement, U.S. Attorney Rose thanked District Attorney Murray, for his office’s continued collaboration and support.
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.
The investigation was conducted by the FBI and CMPD. U.S. Attorney Rose also thanked the U.S. Marshals Service, Gastonia Police Department and the Union County Sheriff’s Office for their assistance with this investigation.
Assistant U.S. Attorneys William Bozin and Lambert Guinn of the U.S. Attorney’s Office in Charlotte are leading the prosecution.
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Operator of Two Macon Co. Companies Pleads Guilty to Securities Fraud and Money Laundering Charges for Defrauding Commodities Trading Investors of Approximately $2.5 MillionRead the Press Release
ASHEVILLE, N.C. – The operator of two companies located in Franklin, N.C. pleaded guilty on Monday, January 25, 2016, to fraud by commodities pool operator and concealment of money laundering charges, for defrauding his investors of approximately $2.5 million, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney Rose is joined by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, in making today’s announcement.
According to the criminal bill of information filed on January 12, 2016, and related plea documents, beginning in at least August 2011, Barry Carlton Taylor, 64, of Franklin, N.C., solicited investment funds from at least 18 victims totaling approximately $2.5 million. Taylor operated two limited liability companies in Franklin, N.C., “OTC Investments, LLC” (OTC) and “Forex Currency Trade Advisors, LLC” (FCTA). According to filed documents, Taylor misrepresented to his investor victims that he was an expert in the foreign currency exchange market (FOREX) and that their investments would be pooled into trading accounts which he would manage and use to invest in FOREX. Taylor also falsely told his victims that he had created a computer software system that could track the FOREX market, which enabled him to make investments that generated very high rates of return, as much as 2.5% per month.
According to court records, even though Taylor opened and maintained FOREX trading accounts in the names of his two companies neither company was registered as a commodity pool operator. Court records also show that Taylor collected money from the individual victim investors and deposited the funds into these trading accounts, but he then withdrew more than half of the victims’ money and lost the rest due to trading losses, fees and commissions. According to court records, by April 2015 there was very little or no investor funds remaining in the trading accounts Taylor controlled.
According to court records, Taylor concealed the losses from his investors by sending the victims false monthly statements that fraudulently represented that the investors’ principal was intact and that they were realizing profits as promised. Court records also indicate that Taylor used money from other principal investors to make Ponzi-style payments to investors who had asked Taylor to withdraw their profits on their promised returns. Taylor also convinced some of the investors to reinvest their “commissions” rather than accepting payments.
In furtherance of the fraudulent scheme, court records show that Taylor used a number of lies to further induce investors and to conceal the fraud. For example, in January 2015, Taylor sent his customers fraudulent emails claiming that he had halted FOREX trading due to events involving the Swiss National bank. In another example, court records show that Taylor created a fictitious entity and a fictitious person in order to send lulling emails to calm his investors, and later lied to victims telling them he was considering taking legal action against this fictitious individual who was supposedly responsible for their trading losses.
Contrary to promises made to his victim investors, Taylor diverted over half a million dollars of the victims’ investment funds and used them to cover personal expense, such as restaurants, entertainment and shopping, among others.
Taylor was released on bond following his guilty plea. The fraud by commodities pool operator charge carries a maximum prison term of 10 years and a $1 million fine. The concealment money laundering charge carries a maximum prison term of 20 years and a $500,000 fine. A sentencing date for the defendant has not been set.
The case is being investigated FBI. In making this announcement, U.S. Attorney Rose also thanked the U.S. Commodities Futures Trading Commission for their invaluable assistance in this investigation.
The prosecution is being handled by Assistant United States Attorney Don Gast of the U.S. Attorney’s Office in Asheville.
Three Involved in Network of Conspirators That Targeted Medicaid Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Two men and a woman involved in a network of conspirators that targeted Medicaid by submitting fraudulent reimbursement claims have been sentenced to prison on health care fraud conspiracy charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank Whitney sentenced today Alexander Bass, 42, and Torrey Darnell Moton, 45, both of Fuquay-Varina, N.C., to 32 and 25 months in prison, respectively, three years of supervised release and ordered both defendants to pay $370,372.37 as restitution to Medicaid.
On January 13, 2016, a third conspirator, LaChanda Clotiel Parks, 40, of Charlotte, was ordered to serve 28 months in prison followed by three years of supervised release and to pay $352,565.69 in restitution for her role in the conspiracy.
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 court proceedings, at various times between October 2012 and August 2013, Bass, Moton and Parks were part of a health care fraud ring that defrauded Medicaid by filing false claims for mental and behavioral health services to beneficiaries which were never actually provided. According to court records, the network of conspirators executed the fraud through a number of mental and behavioral health services companies, including “United Rehabilitation Services” (URS) in Erwin, N.C., which was owned and operated by Bass and Moton.
Court records show that Bass and Moton agreed to pay $4,000 per month to Cynthia Harlan, who is currently facing federal health care fraud charges, in exchange for coordinating the filing of fraudulent claims to Medicaid on behalf of URS. At the direction of Harlan, Bass and Moton also paid another conspirator, who operated as the scheme’s patient-recruiter, to collect Medicaid beneficiary numbers which were then used to file the false claims. Court records indicate that between January and July 2013, Harlan, Bass and Moton filed over $1.1 million in fraudulent claims, and Medicaid paid out approximately $370,000 directly to Bass and Moton.
According to court filings, Parks was responsible for generating some of the fake paperwork used to support the fraudulent claims, including fake intake sessions, fake clinical assessments and fabricated therapy notes.
The three defendants will be ordered to report to the Federal Bureau of Prisons to begin serving their sentences upon designation of a federal facility. All federal sentences are served without the possibility of parole.
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.
Former Treasurer Sentenced to Two Years for Stealing Money from Charlotte Area Non-profit EmployerRead the Press Release
CHARLOTTE, N.C. – The former Treasurer of a Charlotte area non-profit organization was sentenced on Tuesday, January 19, 2016, to 24 months in prison for stealing more than $344,262 from his employer, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Floyd Kevan Weaver, 53, of Charlotte, was also sentenced to two years of supervised release and was ordered to pay $344,262.71 as restitution. Weaver pleaded guilty to one count of uttering counterfeit and forged securities in October 2015.
U.S. Attorney Rose is joined in making this announcement by Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service.
According to filed court documents and court proceedings, from 2000 to 2013, Weaver was employed by a Charlotte-area non-profit organization. As the non-profit’s elected Treasurer, Weaver was responsible for the organization’s financial affairs and acted as custodian of its funds. Weaver previously admitted that from 2008 to 2013, he engaged in a scheme to defraud his employer by fraudulently diverting the organization’s funds for his personal benefit. According to court records and the sentencing hearing, Weaver forged the name of one of the non-profit’s officers on the organization’s bank checks and deposited the forged checks into his own bank account. He concealed the fraud by logging the stolen funds as travel expenses, mileage reimbursement, office supplies and postage. According to court records, Weaver forged approximately 116 checks totaling more than $326,545, and also used the non-profit’s debit card to steal more than $17,717 for his personal use. Court documents show that Weaver used the stolen money to purchase jewelry and a car, among other things.
Weaver will be ordered to report the Federal Bureau of Prisons to begin serving his sentence. All federal sentences are served without the possibility of parole.
The investigation was handled by the USPIS. The prosecution for the government is being handled by Assistant United States Attorney Jenny Sugar of the U.S. Attorney’s Office in Charlotte.
Former Office Manager Sentenced to 37 Months in Prison for Stealing More Than $253,000 from Her EmployerRead the Press Release
STATESVILLE, N.C. – Angelina Marie Parker, 44, of Lincolnton, N.C., was sentenced on Monday, January 11, 2016, to serve 37 months in prison for stealing more than $253,000 from her former employer, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, U.S. District Judge Richard Voorhees ordered Parker to serve three years of supervised release and to pay $158,134 as restitution.
U.S. Attorney Rose is joined in making today’s announcement by Matthew Quinn, Assistant Special Agent in Charge of the United States Secret Service, Charlotte Field Division.
According to filed court documents and yesterday’s sentencing hearing, Parker was employed as an office manager by Piedmont Urgent Care of North Carolina, Inc. (Piedmont Urgent Care), formerly located in Hickory, N.C. Parker was indicted on 23 counts of uttering forged securities (checks) in 2009. According to court documents and evidence from the sentencing hearing, beginning in 2004, Parker used her position to embezzle over $250,000 from her employer. Court records show that Parker executed the embezzlement scheme by generating unauthorized company checks payable in her name and the name of a relative. According to court records and court proceedings, Parker forged the signatures of the doctors who owned Piedmont Urgent Care, and deposited the checks into her bank account and the bank accounts of relatives. Court records also show that Parker concealed her theft of Piedmont Urgent Care’s money by altering the accounting records in the healthcare company’s computer system. Court records and evidence presented at sentencing indicate that Parker used the money to pay for personal expenses. Parker pleaded guilty in September 2014, to three counts of uttering counterfeit securities, namely the company’s checks, with the intent to deceive the organization.
At the sentencing hearing, the court heard victim testimony regarding the initial discovery of Parker’s embezzlement and the substantial impact Parker’s fraud had on Piedmont Urgent Care, its employees and the company’s owners. Sentencing testimony revealed that the physicians who owned Piedmont Urgent Care first became aware of Parker’s embezzlement in 2009, after switching accounting firms. When the physician’s confronted Parker of the fraud she admitted to stealing money. According to court records, Parker later admitted to another person who worked at Piedmont Urgent Care that she had been stealing as much as $5,000 a month for five years from the company. According to victim testimony during yesterday’s sentencing hearing, Piedmont Urgent Care was unable to recover from the effects of Parker’s embezzlement, and eventually 12 employees lost their jobs when the healthcare company ceased its operations in 2014.
In handing down Parker’s sentence, Judge Voorhees noted the substantial victim impact of Parker’s embezzlement and imposed the highest sentence of imprisonment pursuant to federal Sentencing Guidelines.
Parker 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.
The investigation was handled by the U.S. Secret Service. In making today’s announcement, U.S. Attorney Jill Westmoreland Rose thanked the North Carolina State Bureau of Investigation for their invaluable assistance in this case.
The prosecution for the government was handled by Assistant United States Attorneys Thomas O’Malley and Tiffany Mallory of the U.S. Attorney’s Office in Charlotte.
U.S. Attorney's Office, Law Enforcement Agencies & Community Organizations Gather to Recognize "National Slavery and Human Trafficking Prevention Month" and to Raise Community AwarenessRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office, law enforcement agencies and community organizations gathered today in recognition of “National Slavery and Human Trafficking Prevention Month,” announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.
During an early morning press conference, U.S. Attorney Rose emphasized the importance of raising awareness and educating the public about human trafficking and highlighted the continued efforts of law enforcement and the Charlotte Metropolitan Human Trafficking Task Force against one of the most grievous crimes impacting our communities today.
“Over the past five years, our response to the scourge of human trafficking has been persistent and aggressive. The U.S. Attorney’s Office has worked hand-in-hand with our law enforcement partners, community organizations and victims’ services groups to forge a strong coalition against human trafficking and to put end in the sex trafficking of children. While we’ve succeeded in raising public awareness, bringing perpetrators to justice and assisting victims rescued from a cycle of abuse and exploitation, our work is far from over. As we move forward, we will continue our record of success and draw upon our collective resources to identify and assist trafficking victims and put behind bars those who seek to profit from the exploitation of other human beings,” said U.S. Attorney Rose.
“Human trafficking is a form of modern-day slavery. Homeland Security Investigations continues to pursue the perpetrators of this heinous crime as one of its highest priorities, via a coordinated global effort with our federal, state and local law enforcement partners,” said Special Agent in Charge of HSI Atlanta Nick Annan. “Over the past two years HSI has doubled its number of human trafficking arrest and we will continue our relentless pursuit to investigate and seek prosecution of these criminals while also ensuring the victims of this terrible crime are rescued and get the care they need.”
“Human trafficking victims are trapped in lives of misery, often beaten, starved, and forced to work as prostitutes or to take grueling jobs with little or no pay. The FBI devotes a significant amount of resources to hold those accountable who sacrifice another person’s civil rights and freedom for their own profit,” said John A. Strong, Special Agent in Charge of the FBI in North Carolina.
The Charlotte Metropolitan Human Trafficking Task Force comprises law enforcement agencies – including ICE-Homeland Security Investigations, the FBI, and the Charlotte-Mecklenburg Police Department – federal and state prosecutors and community organizations. During today’s press conference, U.S. Attorney Rose praised the work of the task force for their ongoing collaboration and thanked its community partners for their unwavering commitment and critical assistance to rescued victims.
“Our community organizations have stepped up to the plate and have been incredible allies in our fight against human trafficking, by providing much-needed short and long-term assistance to those rescued from the hands of sex traffickers. As the victims slowly begin to rebuild their lives, access to resources, including food, shelter, medical and mental health services and legal assistance, is critical. Time and again, we have relied on our community groups to provide rescued victims with the recovery support they need, and their commitment and willingness to help has been nothing short of extraordinary,” said U.S. Attorney Rose.
This morning’s press conference was followed by a half-day training workshop organized by the task force. The workshop was open to the public with a special emphasis on members of the hospitality industry. The goal of the training was to enhance participants’ understanding of human trafficking and highlight best practices for supporting law enforcement in combating sex trafficking.
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If you believe you are the victim of a trafficking situation or may have information about a potential trafficking situation, call the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888. NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week, every day of the year related to potential trafficking victims, suspicious behaviors, and/or locations where trafficking is suspected to occur. You can also submit a tip to the NHTRC online.
You can also contact ICE-Homeland Security Investigations at 1-866-DHS-2-ICE (1-866-347-2423) or the Charlotte Office of the FBI at 704-672-6100.
Newton, N.C. Man Pleads Guilty to Three Bank RobberiesRead the Press Release
CHARLOTTE, N.C. – A Newton, N.C. man appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to robbing three BB&T Bank branches in 2014, 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) in North Carolina and Chief Tracy Ledford of the Maiden Police Department.
A federal criminal indictment was filed on September 16, 2015, charging Joshua Paul Wilson, 33, with three counts of bank robbery, stemming from the bank robberies he carried out between April and June 2014.Court records show that on April 2, 2014, Wilson robbed a BB&T branch located in Maiden, N.C.Then on May 20, 2014, Wilson robbed a second BB&T branch, located in Claremont, N.C.Wilson robbed the third BB&T branch in Valdese, N.C. on June 14, 2014.According to court records and today’s plea hearing, Wilson entered each of the three bank branches wearing a hat and dark sunglasses and obtained money by intimidating the bank tellers. Wilson took $1,579 from the Maiden branch, $3,990 from the Claremont branch, and $8,927 from the Valdese branch.
Wilson is currently in federal custody.The statutory maximum sentence for each bank robbery charge is 20 years in prison and a $250,000 fine.A sentencing hearing for the defendant has not been scheduled yet.
The investigation was handled by the FBI and Maiden Police Department.In making today’s announcement U.S. Attorney Rose thanked the Claremont and Valdese Police Departments and the Catawba County Sheriff’s Office for their assistance with the investigation.
The prosecution is being handled for the government by Assistant U.S. Attorney Craig Randall of the U.S. Attorney’s Office in Charlotte.
Ukrainian National Extradited from Poland to Face Charges Related to $10 Million Cyber Money Laundering OperationRead the Press Release
A Ukrainian national made his initial appearance today in federal court in Charlotte, North Carolina, after being extradited from Poland to face charges relating to a $10 million international money laundering operation, announced 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 and Special Agent in Charge John A. Strong of the FBI’s Charlotte Division.
Viktor Chostak, 34, of Ukraine, along with three other individuals, are charged in a 25-count indictment with conspiracy to commit money laundering, eleven counts of money laundering, conspiracy to commit computer fraud, conspiracy to transport stolen property, conspiracy to commit access device fraud, four counts of transporting stolen property and six counts of aggravated identity theft.
According to a redacted version of the indictment unsealed today, beginning in September 2007, Chostak and three other conspirators were members of an international money laundering organization. The organization created and operated a sophisticated online infrastructure that allowed hackers to obtain and conceal stolen money, primarily from U.S. companies’ bank accounts, and transfer it to countries outside the United States. The organization created seemingly legitimate websites for fake companies, then sent spam emails advertising employment opportunities. When an individual responded to the spam solicitations, the organization put the applicant through what appeared to be a legitimate hiring process. The organization falsely represented that the individual’s job was to receive payments from businesses into their personal bank accounts, withdraw the money, then wire the funds to the company’s partners overseas. In reality, the individuals merely acted as money mules, processing hackers’ stolen proceeds and wiring them out of the country to other conspirators. The organization allegedly laundered at least $10 million in stolen money from the United States overseas.
According to the indictment, Chostak recruited, hired and managed others who oversaw the money mule operations. Chostak also allegedly worked with computer programmers to meet the needs of the organization’s online infrastructure.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI’s Charlotte Division. The Criminal Division’s Office of International Affairs also provided assistance. The case is being prosecuted by Trial Attorneys Jocelyn Aqua and Ryan K. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Kevin Zolot of the Western District of North Carolina.
Chostak et al Indictment
Ukrainian National Extradited from Poland to Face Charges Related to $10 Million Cyber Money Laundering OperationRead the Press Release
CHARLOTTE, N.C. – A Ukrainian national made his initial appearance today in federal court in Charlotte, North Carolina, after being extradited from Poland to face charges relating to a $10 million international money laundering operation, announced 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 and Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division.
Viktor Chostak, 34, of Ukraine, along with three other individuals, are charged in a 25-count indictment with conspiracy to commit money laundering, eleven counts of money laundering, conspiracy to commit computer fraud, conspiracy to transport stolen property, conspiracy to commit access device fraud, four counts of transporting stolen property and six counts of aggravated identity theft.
According to a redacted version of the indictment unsealed today, beginning in September 2007, Chostak and three other conspirators were members of an international money laundering organization. The organization created and operated a sophisticated online infrastructure that allowed hackers to obtain and conceal stolen money, primarily from U.S. companies’ bank accounts, and transfer it to countries outside the United States. The organization created seemingly legitimate websites for fake companies, then sent spam emails advertising employment opportunities. When an individual responded to the spam solicitations, the organization put the applicant through what appeared to be a legitimate hiring process. The organization falsely represented that the individual’s job was to receive payments from businesses into their personal bank accounts, withdraw the money, then wire the funds to the company’s partners overseas. In reality, the individuals merely acted as money mules, processing hackers’ stolen proceeds and wiring them out of the country to other conspirators. The organization allegedly laundered at least $10 million in stolen money from the United States overseas.
According to the indictment, Chostak recruited, hired and managed others who oversaw the money mule operations. Chostak also allegedly worked with computer programmers to meet the needs of the organization’s online infrastructure.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI’s Charlotte Division. The Criminal Division’s Office of International Affairs also provided assistance. The case is being prosecuted by Trial Attorneys Jocelyn Aqua and Ryan K. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Kevin Zolot of the Western District of North Carolina.
Charlotte Man Sentenced to 12 Years in Prison for Bank Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. sentenced Jerry Lee Grier, Jr., 38, of Charlotte to 12 years in prison in connection with his scheme to defraud Wells Fargo Bank, N.A. (Wells Fargo) and for violating the terms of his supervised release, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Grier, who pleaded guilty in June 2015 to one count of bank fraud, was also ordered to pay $100,800 in restitution to Wells Fargo and to serve five years of supervised release following his release from prison.
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 court proceedings, from December 2014 through April 2015, Grier engaged in a scheme to defraud Wells Fargo by fraudulently obtaining customer account information and using such information to conduct unlawful cash withdrawals and transactions. According to court documents, after obtaining the customer account information, Grier would contact Wells Fargo bank tellers and other employees located in Charlotte and elsewhere via cell phone and use the sensitive customer account information to impersonate legitimate Wells Fargo customers, often falsely claiming to be seeking assistance in accessing and transferring cash to various accounts. Grier used a variety of lies to induce the unlawful transfer of monies, for example, by telling Wells Fargo employees that he was in urgent need for cash because of an emergency. According to court documents Grier was arrested after conducting one such fraudulent withdrawal of $22,000 at a Wells Fargo branch in Norfolk, Virginia.
In handing down the 12 year sentence, Judge Conrad noted that Grier’s criminal fraud history was “unmatched by any fraud defendant” seen by the Court and that such history reflected an “extraordinary pattern of fraudulent activity” that had been undeterred by prior prison sentences. Judge Conrad found that Grier’s three prior federal bank fraud convictions, in addition to today’s federal bank fraud conviction, coupled with the multitude of his other state fraud convictions, caused significant harm to victims and demonstrated Grier’s complete and utter disregard for the law. Judge Conrad stressed that a paramount consideration in determining the sentence was the need to protect the public from Grier’s further criminal activity.
Grier has been in federal custody since April 2015, when he was arrested for violating the terms of his supervised release arising from his 2011 federal bank fraud conviction. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
U.S. Attorney Rose credited the FBI for the investigation leading to today’s sentence.
Assistant U.S. Attorney Mark T. Odulio of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Owner of Medical Billing Company Indicted on Health Care Fraud and Aggravated Identity Theft Charges for Stealing Millions from MedicaidRead the Press Release
CHARLOTTE, N.C. – A Charlotte grand jury has indicted Jason Adam Townsend, 39, of Raeford, N.C., on health care fraud and aggravated identity theft charges, in connection with a scheme that defrauded Medicaid of millions of dollars, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. The 10-count indictment was unsealed today, following Townsend’s appearance in court.
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 allegations contained in the indictment, in or about 2011, Townsend and another unindicted individual created Townhall Enterprises, LLC (Townhall), located in Raeford. Townhall provided billing services and credentialing services to mental health companies and other health providers. The indictment alleges that as third-party billing provider, Townhall received information from its clients detailing claim information to be submitted to insurance companies and health care benefit programs, including Medicaid.
The indictment alleges that from in or about 2011 to in or about 2013, and at the direction of Cynthia Harlan, Townhall entered into contractor agreements with client agencies to provide billing services, including submitting claims to Medicaid, and in return receiving 5-7% of the reimbursed claims. According to court records, Harlan owned and operated Heartland Consulting and Marketing, LLC (“Heartland”) in Charlotte, and held herself out as a consultant specializing in the operation of mental health companies and Medicaid reimbursement. Harlan was indicted on health care fraud conspiracy and related charges in September 2015. Townhall’s other client agencies included New Choices Youth and Family Services, operated by Sakeenah Davis and Kino Williams, Life Impact Solutions, LLC, owned and operated by Zaria Humphries, and Aliya Boss, all of whom have pleaded guilty federal charges in connection with the scheme.
According to allegations contained in the indictment, Townsend and Townhall received billing instructions for clients, such as Boss, Life Impact Solutions, LLC and others, directly from Harlan or others acting on Harlan’s behalf. The indictment alleges that these instructions generally were contained in billing spreadsheets, which Harlan provided, containing relevant claim information, such as the Medicaid beneficiary name, date of birth, Medicaid ID number, the alleged dates of services, the alleged types of services and company that allegedly provided the services. The indictment alleges that Townsend generally did not follow the instructions provided by Harlan and the client agencies, and instead he frequently billed two or three times the amount of services he was instructed to submit to Medicaid. For example, the indictment alleges that instead of submitting claims to Medicaid requesting reimbursement for approximately 268 dates of therapy allegedly provided to 14 Medicaid beneficiaries, Townsend made up different claims, and increased the number of dates of service to over 400.
The indictment alleges that Townsend submitted millions of dollars in false claims, for which Medicaid reimbursed the providers. Townsend and Townhall were compensated by the client agencies for submitting the fraudulent claims. The indictment also alleges that during the same time period, Townhall’s primary source of income was the fees it charged to clients obtained through Harlan.
Townsend is charged with five counts of health care fraud conspiracy and five counts of aggravated identity theft and had his initial appeared today before U.S. Magistrate Judge David S. Cayer. He was released on conditions from the court. His detention hearing will be scheduled by the court in the coming days. The health care fraud conspiracy charge carries a maximum prison term of 10 years and a $250,000 fine per count. The aggravated identity theft charge carries a mandatory prison term of two years, consecutive to any other term of imprisonment.
An indictment is merely an allegation and Townsend is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.
The FBI conducted the investigation. In making today’s announcement, U.S. Attorney Rose also thanked the North Carolina Medicaid Investigations Division for their assistance in this case.
The prosecution of the cases is handled by Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Charlotte Office.
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].
Operator of Third Party Payroll Company Sentenced to More Than 11 Years in Prison for Embezzling $17 Million from Client CompaniesRead the Press Release
CHARLOTTE, N.C. – James William Staz was sentenced today to 135 months in prison for embezzling more than $17 million from clients of the third-party payroll company he operated, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Frank D. Whitney also sentenced Staz to two years of supervised release and ordered him to pay over $17 million as restitution. Staz pleaded guilty in March 2015 to wire fraud, transactional money laundering and tax evasion.
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 Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).
According to court documents and today’s sentencing hearing, Staz operated a third-party payroll company, “Employee Services.Net, Inc.” (ESN), that provided various services to client companies, including processing payroll, collecting and paying employment taxes, and preparing and filing employment tax forms. Court records show that Staz was ESN’s vice president and later the company’s president, and at its height, ESN had approximately 500 client companies nationwide. According to court documents, ESN had access to the clients companies’ bank accounts and could draft directly the funds needed to cover expenses associated with the services it provided.
Court records indicate that from 2008 to March 2014, Staz defrauded at least 113 ESN clients of approximately $17 million dollars intended for payroll and employment tax payments and used it to support his personal lifestyle. Staz stole at least $3.7 million in client funds and used the money to pay for alcohol, strip club entertainment to include leaving a $5,000 tip, jewelry, a Mercedes Benz and a luxury home. To conceal his embezzlement, court records show that Staz made false entries into ESN’s accounting system to make it appear as though the funds were used for legitimate client expenses.
At today’s sentencing hearing, Judge Whitney said that Staz “victimized a lot of people, across the socio-economic spectrum and across the country,” including “non-profits that operate on a very tight budget.” Judge Whitney also said that the defendant “probably victimized more individuals and legal entities than any other fraud scheme this court has ever seen,” adding, “that kind of reckless disregard for spending people’s money is horrifying.”
James Staz has been in custody since his arrest in October 2014. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
At today’s sentencing hearing Judge Whitney granted the government’s motion to dismiss the charges against James Staz’s father and former codefendant, William James Staz, who is now deceased.
The investigation for the case was handled by the FBI and IRS-CI. Assistant U.S. Attorney Kelli H. Ferry of the U.S. Attorney’s Office, in Charlotte, prosecuted the case.
U.S. Attorney's Office Collects $129,598,713.70 in Civil and Criminal Actions for Crime Victims and U.S. Taxpayers in Fiscal Year 2015Read the Press Release
CHARLOTTE, N.C. - U.S. Attorney Jill Westmoreland Rose announced today that the Western District of North Carolina (WDNC) collected $129,598,713.70 in criminal and civil actions in Fiscal Year 2015 (FY 2015). Of this amount, $12,327,951.04 was collected in criminal actions and $117,270,762.66 was collected in civil actions.*
Attorney General Loretta E. Lynch announced on Thursday, December 3, 2015, that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The total includes all monies collected asw a result of Justice Department-led enforcement actions and negotiated. civil settleents. It includes more than $16.2 billion in payments made directly to the Justice Department, and more than $6.8 billion in indirect payments made to other federal agencies, states and other designated recipients. Collections in FY 2015 represent more than seven and a half times the approximately $2.93 billion of the Justice Department's combined appropriations for the 94 U.S. Attorney's Offices and the main litigating divisions in that same period.
“The lawyers and staff of this Office work diligently to protect the citizens of our district and deliver justice. We also strive to ensure that criminals are not enriched by their conduct, criminal and civil debts are recovered, and restitution is paid to victims of crimes. A portion of the recovered funds is also returned to the federal treasury to support much needed victim services and to fund ongoing federal, state and local law enforcement efforts and initiatives,” said U.S. Attorney Rose. “It is important to highlight that as a federal agency the Department of Justice, through the work of its employees, collects seven and a half times the amount it costs to run the agency. I would call that a good return on the public’s investment,” Rose added.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. While restitution is paid to victims, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
In December 2002, in US v. Reid (3:02-cr-169), Douglas W. Reid was sentenced to 51 months in prison for his involvement in an investment fraud scheme. In FY 2015, $4,118,255 was collected and applied toward the restitution ordered by the court, closing the debt in this case.
In U.S. v. Simmons (3:10-cr-23), WDNC collected $3,055,938, and the money was transferred to the U.S. Clerk of Court to be distributed to victims in this criminal case. Keith Franklin Simmons and his conspirators orchestrated a Ponzi scheme that defrauded 400 victims of more than $40 million. A total of 11 defendants were convicted in connection with this case, with the mastermind of the scheme, Simmons, currently serving a 40-year sentence. Also in FY 2015, in U.S. v. Le (3:14-cr-110) the office collected $1,041,288.52 from Dr. Le, who was sentenced to 18 months in prison in September 2015, on healthcare fraud and tax evasion charges.
In FY 2015, the largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education. The Western District of North Carolina conducted a joint investigation with the Justice Department’s Civil Division into Adventist Hospital system, which resulted in a recovery of $115 million for the Medicare program. The investigation was based on two qui tam complaints filed in the Western District of North Carolina.
Additionally, the Western District of North Carolina also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $9,166,511,236.73 in cases pursued jointly with these offices. Of this amount, $5,694,936.73 was collected in criminal actions and $9,160,816,300 was collected in civil actions. For example, in FY 2015, WDNC collected $5,600,250 million as part of Duke Energy Carolinas LLC and Duke Energy Progress Inc.’s settlement with the U.S. Attorney’s Offices for the Western, Middle and Eastern Districts of North Carolina.
Additionally, working with partner agencies and divisions, WDNC collected $12,015,903 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used, among other purposes, to restore funds to crime victims.
* In measuring collections recovered in FY 2015, this figure necessarily includes some cases that were resolved in previous years but the proceeds of which were collected in FY 2015.
Former Charlotte Resident Sentenced to 24 Months in Prison on Securities Fraud and Wire Fraud Conspiracy ChargesRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad, Jr. sentenced Michael Francis Egan, III, 33, formerly of Charlotte, to 24 months in prison and two years of supervised release on conspiracy to commit securities and wire fraud charges, in connection with a fraudulent investment scheme, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Conrad also ordered Egan to pay more than $300,000 as restitution to his victims.
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 sentencing hearing, from August 2007 to February 2012, Egan carried out a fraudulent investment scheme by inducing his victims to enter into various fictitious business and investment contracts. According to court records, Egan promised his investor victims that he would invest their money in various projects, including Halloween and holiday themed attractions, land development, and television shows, among others. To further induce his victims, Egan lied about his financial background and personal assets and about his professional connections and investments. For example, Egan falsely told his victims he was a close associate and friend of the CEO of a major bank, a close associate or employee of a well-known investment mogul and that he owned a percentage of well-known hotels and casinos in Las Vegas. Instead of investing the victims’ money as promised, Egan used it to fund his lifestyle and to pay for personal expenses such as rent, his car lease, groceries and pet care. According to court records, Egan defrauded more than 14 victims of over $300,000. Egan pleaded guilty to the charges in April 2015.
At today’s sentencing hearing, Judge Conrad described Egan’s conduct as “a long-term fraud scheme with numerous acts of deception and fraud.” Judge Conrad also noted the defendant’s “predatory nature of the stealing of money […] considering the amount of money, the amount of victims […] and the defendant’s cunning on innocent victims.”
Egan 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.
The FBI investigated the case. The prosecution was handled by Assistant U.S. Attorney Kevin Zolot of the Western District of North Carolina.
Man Previously Convicted of Federal Firearms Offense Sentenced to 44 Months in Prison for Assaulting Two Deputy U.S. MarshalsRead the Press Release
CHARLOTTE, N.C. – On Thursday, December 3, 2015, Chief U.S. District Judge Frank D. Whitney sentenced Reginald Lashawn Lockhart, 31, of Charlotte to serve to 44 months in prison and three years of supervised release in connection with the 2014 assault of two Deputy U.S. Marshals, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Whitney ordered Lockhart’s sentence to be served consecutive to the 15 year prison term Lockhart is serving for a firearms offense.
U.S. Attorney Rose is joined in making today’s announcement by Kelly M. Nesbit, United States Marshal of the United States Marshals Service for the Western District of North Carolina and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.
According to filed court documents and court proceedings, on September 3, 2015, Lockhart appeared in federal court for his sentencing proceedings relating to a firearms violation charge. According to court records, after Lockhart was handed down the 180 month prison term for that conviction, the defendant assaulted two Deputy U.S. Marshals who were escorting him from the courtroom. Court records show that Lockhart made physical contact with the two deputies and inflicted bodily injury upon them. According to statements made during the sentencing hearing, Lockhart had threatened and assaulted other deputy marshals on other occasions. Lockhart also assaulted a Mecklenburg County detention officer in June 2013, and was even making threats to assault guards within the past week. Lockhart pleaded guilty to two counts of assaulting an officer in April 2015.
Lockhart has been in federal custody since November 2012 for his previous federal offense. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the U.S. Marshals Service and the FBI. The case was prosecuted by Assistant United States Attorney Don Gast of the U.S. Attorney’s Office in Charlotte.
Charlotte-Area Appliance Repairman Sentenced to 30 Months on Wire Fraud and Tax Fraud ChargesRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney today sentenced John Wesley Clark, 43, of Charlotte, to 30 months in prison on wire fraud and tax fraud charges, receiving over $576,000 in payments for fraudulent warranty claims, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Clark was also ordered to serve two years under court supervision after his release from prison and to pay $576,669.75 in restitution to Samsung and $184,710.00 as restitution to the IRS. He pleaded guilty to one count of wire fraud and one count of filing a false tax return in June 2015.
Thomas J. Holloman, III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI) and Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service join U.S. Attorney Rose in making today’s announcement.
According to the filed court documents and today’s sentencing hearing, Clark was the owner and operator of various Charlotte-area appliance repair companies, including JA Appliance Co; Fitzgerald Appliance Co; BR Appliance; C&A Appliance Co.; D&L Appliance Co.; and J&S Appliance Co. Court records show that beginning in at least 2010 and continuing through 2012, Clark, who is also known as John Isaacs, Jonathan Fitzgerald, and JA Adams, defrauded a major electronics company based in New Jersey by submitting false and fraudulent warranty work order claims, for warranty work that was not performed. According to court records, Clark, sometimes using an alias, established his companies as authorized service centers for the major electronics company. He then submitted the fraudulent warranty work orders that listed, among other things, false customer information, false addresses, false part numbers, and false repair dates. Clark received $576,000 in payments for the fraudulent warranty claims.
Court records also show that for tax years 2010 through 2012, Clark failed to report all of the income he obtained through the fraudulent warranty claims on his federal tax returns. Additionally, Clark filed fraudulent forms W-2 with his federal tax returns that falsely stated that tax withholding had been paid over to the IRS.
Clark 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.
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In a separate case, on Monday, November 30, 2015, Judge Whitney also sentenced Sammie Marks, 42, of Matthews, N.C., to 12 months and 1 day in prison and one year of supervised release on a tax evasion charge. He was also ordered to pay $158,614 as restitution to IRS.
According to court records, Marks was the owner of “Marks Metal and Salvage,” located in Charlotte. Court records in that case show that between tax years 2009 and 2013, Marks deposited checks and cash receipts from his businesses and its customers totaling over $1.1 million into his personal bank account, which he did not include in his personal or business tax returns filed with IRS. As a result of the unreported gross receipts, Marks had additional tax liability of $158,614.
The investigation into Clark was handled by IRS-CI and the U.S. Postal Inspection Service. Marks’ investigation was handled by IRS-CI. Both cases were prosecuted by Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.
Charlotte Man Sentenced to 9 Years in Prison for Firearms OffenseRead the Press Release
CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced Stephon Deangleo Caldwell, 28, of Charlotte, to 108 months in prison for a firearms offense, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Caldwell was also ordered to serve 2 years under court supervision following his prison sentence.
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 filed court documents and today’s sentencing hearing, on or about December 1, 2014, CMPD officers were attempting to serve Caldwell multiple state warrants at his residence in Charlotte. Court records show that Caldwell began shooting at the officers with his firearm, a Sig Sauer Model P232 pistol. Officers returned fire striking Caldwell who then attempted to flee on foot, but was apprehended shortly thereafter. According to court records, Caldwell is a member of the United Blood Nation gang and has a prior felony conviction which prohibits him from possessing or carrying a firearm. Caldwell pleaded guilty in April 2015, to one count of possession of a firearm by a convicted felon.
At the sentencing hearing, prosecutors urged Judge Whitney to impose a sentence that promotes respect for the law, stating that we must send a message that violence against our law enforcement officers will not be tolerated.
Caldwell has been in federal custody since December 2014. Upon designation of a federal facility, he will be transferred to the custody of the Federal Bureau of Prisons. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI and CMPD. The prosecution was handled by Assistant United States Attorneys Elizabeth Greene and William Bozin of the U.S. Attorney’s Office in Charlotte.