Western District of North Carolina

CHARLOTTE, N.C. – Two members of a drug conspiracy that distributed fentanyl and methamphetamine were sentenced to prison yesterday, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Ashton Durrell Farley, 32, of Hickory, N.C., was sentenced to 235 months in prison followed by five years of supervised release. Thomas Eugene Ikard, 46, of Lenoir, N.C., was sentenced to 60 months in prison followed by four years of supervised release. Farley and Ikard pleaded guilty to conspiracy to distribute and to possess with intent to distribute fentanyl and methamphetamine.

U.S. Attorney Ferguson is joined in making the announcement by Alicia Jones, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office, and Chief Reed Baer of the Hickory Police Department.

Two other members of the drug conspiracy were previously sentenced after pleading guilty to conspiracy to distribute and possession with intent to distribute fentanyl and methamphetamine. Dustin Eric Wilson, 35, of Charlotte was sentenced to 10 years in prison followed by five years of supervised release. Harold Marquis Wilfong, 37, of Hickory, was sentenced to 84 months in prison followed by three years of supervised release.

According to court documents and court proceedings, federal charges were filed against the defendants following a 10-month investigation led by the ATF and the Hickory Police Department (HPD), aimed at reducing drug distribution and drug-induced criminal activity in Catawba County and surrounding areas. The drug trafficking ring operated out of Hickory and distributed large quantities of fentanyl and methamphetamine in the area. To identify the drug conspirators and their operations, ATF agents and HPD officers utilized controlled drug purchases, conducted physical surveillance, and executed search warrants. Over the course of the investigation, law enforcement determined that members of the drug ring used several residences either as “stash houses” to store drugs and/or guns, or to conduct drug sales and other drug trafficking activities. One of the alleged stash houses was located two blocks from the federal courthouse in Charlotte.

According to court records, during the investigation, law enforcement seized multiple kilograms of fentanyl, methamphetamine, and marijuana. Law enforcement also seized multiple firearms used by some of the traffickers to support their drug distribution, including an AR-15 rifle and a privately made firearm or “ghost gun,” and ammunition.

In making the announcement U.S. Attorney Ferguson commended the ATF, HPD, and the Catawba County Sheriff’s Office investigation of this case and thanked the U.S. Marshals Service for their invaluable assistance.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

CHARLOTTE, N.C. – Phillip Leon Leggett, 30, of Kings Mountain, N.C., was sentenced yesterday to 102 months in prison followed by three years of supervised release for illegal possession of a firearm, including a “ghost gun,” announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Alicia Jones, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney Ferguson in making the announcement.

According to court records and court proceedings, in the fall of 2023, CMPD was monitoring an area in Charlotte for criminal activity, when officers observed an individual, later identified as Leggett, who appeared to be concealing a firearm in the front pocket of his sweatshirt. CMPD officers approached Leggett who immediately fled on foot. A foot chase ensued, during which the officers observed two firearms fall from Leggett’s person. The guns came to rest along the defendant’s flight path. One officer stopped to collect the firearms while other officers continued to pursue Leggett until the defendant was apprehended and taken into custody. The recovered firearms were a black Taurus PT111 G2 9mm loaded with a magazine, and an unregistered privately made firearm, commonly known as a “ghost gun,” fitted with a 17-round magazine and a round in the chamber. During the investigation, law enforcement determined that Leggett has a criminal history, including multiple Felony Common Law Robbery convictions, and he is prohibited from possessing firearms or ammunition.

Leggett will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney Ferguson thanked the ATF and CMPD for their investigation of the case. The U.S. Attorney’s Office in Charlotte handled the prosecution.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

CHARLOTTE, N.C. – Marquis Drakeford Bynum, 45, of Charlotte, was sentenced today to 144 months in prison for possession of child sexual abuse material (CSAM) involving a prepubescent minor and violating his federal supervised release, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. also ordered Bynum to serve a lifetime of supervised release, to register as a sex offender after he is released from prison, and to pay $33,000 in restitution.

James C. Barnacle, Jr., Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Ferguson in making the announcement.

As reflected in court records, this case arose from Bynum’s violation of the terms of his federal supervised release imposed following his 2007 conviction for transporting and possessing CSAM. According to court records, on August 16, 2023, the U.S. Probation Office (USPO) conducted a search of Bynum’s residence pursuant to his probationary terms. During the search, probation officers recovered two cell phones and a flash drive. U.S. Probation and the FBI forensically analyzed the evidence and found thousands of images and videos depicting the sexual abuse of children as young as toddlers. New federal charges were filed against Bynum, and on April 10, 2024, he pleaded guilty to possession of child pornography involving minors under the age of 12.

Bynum is in federal custody. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney Ferguson thanked the FBI for its work on the case and commended the USPO for their invaluable assistance investigating a sex offender.

Assistant United States Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte prosecuted the case.

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

CHARLOTTE, N.C. – Michelle Wilshire, 50, of Hickory, N.C., was sentenced today to 46 months in prison followed by two years of supervised release for embezzling more than $900,000 from her employer, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

U.S. Attorney Ferguson is joined in making today’s announcement by Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Charlotte Field Office, and Rodney Hopkins, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte.

According to court documents, from 2016 to 2021, Wilshire was employed by a family-owned business located in Conover, N.C., identified as Company A. During the relevant time, Wilshire was in charge of the company’s Comdata account – a third-party payment processing and debit card issuing service – which the company used for fleet management and payment services for its drivers. Wilshire executed the scheme by issuing multiple Comdata prepaid debit cards in her name and in the names of other individuals, including former company employees, fictitious employees, and current employees who were not aware the cards existed. Wilshire then caused Comdata to load funds onto the prepaid debit cards, which she then withdrew via ATM cash withdrawals. Between November 2017, and July 2021, Wilshire withdrew more than $528,000 from prepaid Comdata debit cards.

In addition to the debit card scheme, Wilshire embezzled company funds by using Comdata’s Comchek and Comchek Mobile services to issue checks in the defendant’s name and to make multiple wire transfers into Wilshire’s personal bank account, totaling over $315,000. Wilshire also caused more than $58,000 of the company’s funds to be transferred through Comdata into the bank account of a former company employee.

In addition to the embezzlement scheme, Wilshire also prepared and filed individual income tax returns for tax years 2017 through 2021, which did not include the additional funds Wilshire received through her embezzlement scheme.

On July 15, 2024, Wilshire pleaded guilty to wire fraud and making and subscribing a false tax return.

In making today’s announcement, U.S. Attorney Ferguson thanked IRS-CI and USPIS for their investigation of the case.

Assistant U.S. Attorney Mike Savage and Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – U.S. Attorney Russ Ferguson announced today that d&b audiotechnik Corporation (D&B) has agreed to pay $2,130,185.14 to resolve allegations that it violated the False Claims Act by certifying in an application for a Paycheck Protection Program (PPP) loan that it had fewer than 300 employees, when it was a U.S. subsidiary of a German corporation with well over 300 employees. As a result of the misrepresentation, d&b audiotechnik obtained a loan that was forgiven by the United States. d&b audiotechnik has agreed to repay the original loan amount, plus a penalty—ultimately paying twice what was originally borrowed.

Congress created the PPP in March 2020 under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The PPP was administered by the Small Business Administration (SBA) and provided forgivable loans to small businesses struggling to pay employees and other expenses during the COVID-19 pandemic. In December 2020, Congress approved funding for a second round of forgivable PPP loans. When applying for PPP loans, borrowers were required to certify that they were eligible for the requested loans and that the information they provided was true and accurate.

This matter arose from a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam case is captioned United States ex rel GNGH2 Inc. v. D&B Audiotechnik Corporation, W.D.N.C. Case No. 1:24-cv-246.

The government’s investigation was led by Assistant U.S. Attorney Seth Johnson.

Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. 

The claims resolved by the settlement are allegations only. There has been no determination of liability. 

ASHEVILLE, N.C. – Jamal Marqui McDaniel, 46, was sentenced today to 180 months in prison followed by five years of supervised release for trafficking methamphetamine and firearms offenses, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

According to court documents and evidence presented during court proceedings, the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Asheville Police Department (APD) launched a joint investigation after receiving information that McDaniel was engaged in the illegal sale of narcotics and firearms in the Asheville area. Over the course of the investigation, McDaniel sold methamphetamine, firearms, and ammunition on multiple occasions to individuals who were cooperating with law enforcement. Court records show that, in total, McDaniel is accountable for distributing nearly half a kilogram of methamphetamine, and illegally selling eight firearms.

McDaniel pleaded guilty February 21, 2025, to distribution of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a felon. He remains in the custody of the U.S. Marshals Service pending placement by the federal Bureau of Prisons.

In making today’s announcement, U.S. Attorney Ferguson thanked the ATF, the DEA, the APD, and the Buncombe Country Sheriff’s Office for their investigation of the case.

Assistant U.S. Attorney Christopher S. Hess of the U.S. Attorney’s Office in Asheville handled the prosecution.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

 

ASHEVILLE, N.C. – David Michael Dakoski, 62, of Charlotte, was sentenced today to 120 months in prison for possession of child sexual abuse material (CSAM), announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Martin Reidinger also ordered Dakoski to serve a lifetime of supervised release, to register as a sex offender after he is released from prison, and to pay $88,000 in restitution.

Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, joins U.S. Attorney Ferguson in making the announcement.

According to court records, this case arose from a probation violation after Dakoski was convicted in a previous case. In January 2018, Dakoski was convicted in federal court of possession and receipt of child pornography and was sentenced to prison. In November 2022, Dakoski was released from prison and began a term of court-ordered supervised release under the supervision of the U.S. Probation Office (USPO). In April 2024, USPO conducted an unannounced home visit at Dakoski’s residence, as part of the terms of his post-release supervision. During the visit, USPO officers found Dakoski’s unauthorized cell phone that contained sexually explicit images of minors. As a result, Dakoski’s supervised release was revoked, and he was taken into custody. He was later sentenced to two years in prison for the supervised release violation on his prior conviction.

Court records show that Dakoski’s contraband cell phone was turned over to HSI. A forensic examination of the phone revealed that Dakoski possessed more than 8,270 images and six videos of CSAM, some of which depicted toddlers and infants being sexually abused. New federal charges were filed against Dakoski, and on April 25, 2024, he pleaded guilty to possession of child pornography involving minors under the age of 12.

Dakoski is in federal custody. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney Ferguson thanked HSI for their investigation of the case and commended the USPO for their invaluable assistance investigating a repeat offender.

Assistant United States Attorney Daniel Cervantes of the U.S. Attorney’s Office in Charlotte prosecuted the case.

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

CHARLOTTE, N.C. – Former NASCAR team owner Ronald Devine, 68, of Burke, Virginia, appeared in federal court today and pleaded guilty to failure to pay payroll taxes, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina

Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Charlotte Field Office (IRS-CI), James C. Barnacle, Jr., Acting Special Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Rodney Hopkins, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney Ferguson in making today’s announcement.

According to the plea documents and other court records, Devine was the owner and President of BK Racing, LLC (BK Racing), which operated a NASCAR racing team and owned two NASCAR charters. As the owner, Devine exercised control over BK Racing’s financial affairs, including authorizing the filing and payment of its trust fund taxes, commonly referred to as payroll taxes.

Payroll taxes are withheld from employees’ gross pay for income tax and and to fund Social Security and Medicare. Employers are also required to make contributions to trust fund taxes matching the amounts withheld from their employees’ pay, and to file and pay quarterly taxes.

According to court records, beginning in 2012, Devine caused BK Racing to fail to account for and pay hundreds of thousands of dollars in payroll taxes. Court documents show that, between 2012 and 2017, instead of using the funds held in trust to pay for payroll taxes due, Devine transferred more than $2 million to other businesses and entities that he owned and controlled and used some of the funds to pay for BK Racing’s expenses.

Devine was released on bond following his guilty plea. The charge of failure to truthfully account for and pay over trust fund taxes carries a maximum penalty of five years in prison and a $250,000 fine. A sentencing date has not been set. 

In making today’s announcement, U.S. Attorney Ferguson commended IRS-CI, the FBI, and USPIS for their investigation of the case.

Assistant U.S. Attorneys Caryn Finley and Daniel Ryan of the Office in Charlotte are prosecuting the case.

CHARLOTTE, N.C. – In advance of World Elder Abuse Awareness Day, the U.S. Attorney’s Office is joining Age-Friendly Mecklenburg and AARP-Charlotte to co-host the 3rd Annual Walk for Awareness on Wednesday, June 11, 2025, at Freedom Park in Charlotte. Registration for the walk opens at 8:00 a.m. at Shelter #5 (adjacent to bandshell). The walk will begin at 9:00 a.m.

“Elder abuse, neglect, or exploitation affects too many older adults in our communities. Sadly, crimes against the elderly often go unreported. That’s why it’s important to raise awareness about what financial, physical, or emotional abuse looks like and how to seek help. By participating in events like this walk, we can all take an important step toward protecting our elders to ensure that they can live their advanced years with safety and dignity,” said U.S. Attorney Russ Ferguson.

First recognized on June 15, 2006, by the International Network for the Prevention of Elder Abuse and the World Health Organization, World Elder Abuse Awareness Day (WEAAD) seeks to promote a better understanding of the abuse and neglect suffered by millions of older adults, and bring attention to the cultural, social, economic, and demographic factors that contribute to elder abuse.

Financial exploitation is one of the fastest-growing crimes against older adults. According to the FBI’s Internet Crimes Report, a record number of financial losses were reported in 2024, totaling a staggering $16.6 billion. As a group, those over the age of 60 suffered the most financial losses ($4.8 billion) and submitted the most complaints (147,127). North Carolina ranked #9 in the number of complaints submitted to IC3 and #12 in reported financial losses. The report further indicates that investment fraud, tech support scams, extortion schemes and non-payment/non-delivery scams continue to impact older adults disproportionately, and government impersonation, romance scams, and phishing schemes continue to cost millions in losses for the 60+ population.

“It is not that older adults are more gullible,” said U.S. Attorney Ferguson, “it’s that they have built up the assets that make them targets for criminals.”

Through prosecutions, the U.S. Attorney’s Office continues to combat elder fraud involving domestic and transnational perpetrators. Major strides have already been made to that end:

• In May, a California man was indicted for allegedly orchestrating a $4 million investment scheme that targeted elderly and vulnerable victims.        
• In March, a Nigerian national pleaded guilty to laundering millions in criminal proceeds linked to criminal activity, including romance scams that targeted older adults.
• In March, a foreign national was extradited from Spain to face charges in Western North Carolina for an alleged international “tech support” scheme that targeted victims across the United States, including victims who were 55 and older.

In addition to prosecuting elder fraud cases, the U.S. Attorney’s Office, through its Elder Justice Initiative, partners with law enforcement agencies, local governments, and community organizations to ensure that older adults, caretakers, and those who come in frequent contact with the elderly are educated on how to detect, prevent, and report elder fraud, neglect, and abuse.

In May, the U.S. Attorney’s Office participated in Age Friendly Mecklenburg’s annual Scam Jam to help educate older Americans on how to spot the tell-tale signs of potential scams and where to seek help if fraud is suspected. 

The U.S. Attorney’s Office continues its efforts to educate the public by distributing the latest trends in schemes targeting older adults and sharing tips on how to be protected from scammers.

Additional financial schemes targeting older Americans are:

• Tech Support Scams – Convince victims to pay for non-existent problems with their computers.
• Non-Payment/Non-Delivery Scams – Induce victims to pay for goods or services online, but never receive them. A variation of this scheme is victims receiving emails or texts messages that appear to be from legitimate shipping companies (e.g., UPS, FedEx) with fake non-delivery notifications, claiming that payment or additional personal information is required to complete a package delivery.
• Romance Scams – Lull victims into believing they are in an online romantic relationship and their paramour needs money to pay for a visit to the U.S. or for some other purpose.
• Grandparent Scams – Dupe victims into thinking that their grandchildren or other relatives are in trouble and need money right away for bail or another emergency.
• Charity Scams – Solicit donations for fake charities, or by altering or “spoofing” caller IDs to show the name of a real charity on the phone.
• Lottery Scams – Scammers use phone calls, letters, or emails to convince victims that a large fee or taxes must be paid before they can receive lottery winnings.
• Debt Collection Scams – Victims are threatened with arrest and jail time if payment for a fake debt is not made immediately.
• Money Mule/Money Laundering Scams – Convince victims to use their existing or new bank accounts to quickly move funds in and out of those accounts. Generally, the transferred funds are proceeds of other criminal schemes (such as romance schemes) and victims are unwittingly being used to launder the ill-gotten funds.
• Timeshare Scams – Fraudsters target timeshare owners with false promises of resale and exit from their timeshares for a fee.
• Sham Business Opportunities – Convince victims to invest in lucrative business opportunities or fake investments.

Here are some tips on how to avoid falling victim to a financial scam:

• Don’t share personal or financial information with anyone you don’t know.
• If the person asking the information claims to be a relative, a friend, someone you know, or a representative of a financial institution or government agency, do not respond right away. Instead, contact the person/entity independently or ask a trusted family member or friend for help.
• Don’t pay a fee for a prize or lottery winning.
• Don’t click on pop-up ads, messages, or virus warnings.
• Delete phishing emails, do not respond to texts from unknown numbers, and ignore harassing phone calls.
• Don’t send gift cards, checks, money orders, wire money, or give your bank account information to a stranger or someone who claims to be a relative without verifying the person’s identity.
• Don’t fall for a high-pressure sales pitch or lucrative business deals.
• If you suspect fraud, take the time to talk to a trusted friend or family member.
• It’s not rude to say, “NO.”
• Keep in mind that if you send money once, you’ll be a target for life.
• A good rule of thumb is, if it’s too good to be true, it’s likely a scam.
• And remember, there is no shame in falling victim to an online scammer. These are professional criminals that use tried-and-true tactics to perpetrate fraud.

The U.S. Attorney’s Office urges the public to report suspected elder fraud by calling the Justice Department’s Elder Fraud Hotline at 1-833-FRAUD-11 (833-372-8311) or visiting the Elder Justice Initiative at Justice.gov/elderjustice for additional information and resources.

ASHEVILLE, N.C. – A previously convicted sex offender who served as the administrator of an online chatroom dedicated to sharing child sexual abuse material (CSAM) was sentenced to 188 months in prison today for distributing child pornography, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Nicholas Tyler Banks, 24, of Burnsville, N.C., was ordered to serve a lifetime of supervised release, to register as a sex offender, and to pay $26,000 in restitution.

Chief Daniel Duckworth of the Boone Police Department joins U.S. Attorney Ferguson in making the announcement.

According to court documents and the sentencing hearing, beginning in September 2023, a Boone Police Department detective was conducting an undercover investigation into the sexual exploitation of children online. During the investigation, law enforcement determined that Banks was using a commonly available chat application to share images and videos depicting the sexual abuse of children in a chatroom dedicated to sharing CSAM. All the files shared by Banks were made available for all users of the chatroom to view, download, and further distribute. The CSAM files depicted prepubescent children engaging in sexually explicit conduct with adults and some of the videos depicted sadomasochistic conduct. The investigation further revealed that Banks served as the administrator of the chat group, and in that role, he was in charge of adding new members to the group.

In January 2024, a search warrant was executed at Banks’s residence. Several electronic devices were seized and forensically examined. In total, investigators found that Banks possessed the equivalent (when taking videos into account) of more than 47,700 CSAM images. Investigators also determined that Banks continued to collect and share additional CSAM even after the search warrant was executed.

Banks was previously convicted of the Sexual Exploitation of a Minor in Sullivan County, in Tennessee, and as a result of that conviction he was a registered sex offender.

On January 27, 2025, Banks pleaded guilty to possession of child pornography with a qualifying prior conviction. He is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney Ferguson commended the Boone Police Department for their investigation of the case.

Assistant United States Attorney Alexis Solheim of the U.S. Attorney’s Office in Asheville prosecuted the case.

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

CHARLOTTE, N.C. –Trysten Anthony Cullon, 26, of South Carolina, appeared before U.S. Magistrate Judge Susan C. Rodriguez and pleaded guilty today to conspiracy to commit cyberstalking for a scheme targeting a vulnerable victim and his immediate family members using extortive and threatening text messages, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Previously, on April 10, 2025, Jade Ashlynn Stone, 25, of South Carolina, pleaded guilty to conspiracy to commit cyberstalking.

James C. Barnacle, Jr., Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Ferguson in making today’s announcement.

According to the indictment, filed plea documents, and the court hearings, from September 5 to September 8, 2024, the defendants conspired to engage in a cyberstalking conspiracy that targeted a victim identified in court documents as C.T. C.T. had an intellectual disability and was classified as Educable Mentally Disabled. Because of his disability, C.T. was extensively supported by his immediate family and did not live on his own. C.T. was also employed at a fast-food restaurant chain in Charlotte.

As Cullon and Stone admitted in court, they used a stolen phone to send C.T.’s family members multiple harassing and intimidating text messages demanding money and threatened to provide derogatory and embarrassing information to C.T.’s employer unless they were paid, including salacious claims that C.T. was a pervert, that he harassed girls, and that he paid girls for sexual pictures. As a result of the substantial emotional distress caused by the extortive and threatening text messages sent by the defendants, C.T. died by suicide.

Cullon and Stone pleaded guilty to conspiracy to commit cyberstalking which carries a maximum penalty of five years in prison. Cullon and Stone are both in custody. A sentencing date has not been set.

In making today’s announcement, U.S. Attorney Ferguson thanked the FBI for the investigation of this case and the Charlotte Mecklenburg Police Department for its substantial assistance.

Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

CHARLOTTE, N.C. – A federal indictment was unsealed today in federal court in Charlotte charging Xana Dayanae Dove, a former Gastonia police officer, with straw purchasing a firearm, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Dove, 28, of Charlotte, was arrested on Thursday, and was released on bond following her initial court appearance before U.S. Magistrate Judge David C. Keesler.

James C. Barnacle, Jr., Acting Special Agent in Charge of the FBI in North Carolina, and Alicia Jones, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, join U.S. Attorney Ferguson in making today’s announcement.

According to allegations in the indictment, on May 25, 2023, Dove knowingly made a false and fictitious written statement to Shooters Express, a licensed firearms dealer in Belmont, North Carolina, in connection with the acquisition of a Springfield Hellcat Pro, 9mm pistol. The indictment alleges that Dove falsely stated on ATF’s Firearms Transaction Record Form 4473 that she was the actual transferee/buyer of the firearm when the defendant knew this statement was false and fictitious.

Dove is charged with making a false statement during the purchase of a firearm and causing a false report during a firearm purchase. If convicted, Dove faces a combined maximum sentence of up to 15 years in prison. A federal district court judge will determine any sentence imposed after considering the U.S. Sentencing Guidelines and other statutory factors.

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

In making today’s announcement, U.S. Attorney Ferguson commended the FBI and ATF for their work on the investigation, and thanked Homeland Security Investigations, the North Carolina Department of Adult Correction’s Community Supervision, and the Gastonia Police Department for their assistance with Dove’s apprehension.

Assistant U.S. Attorney Dana Washington with the U.S. Attorney’s Office in Charlotte is prosecuting the case. 

ASHEVILLE, N.C. –Ronald Lee Peak, 45, of Hendersonville, N.C., was sentenced today to 188 months in prison followed by four years of supervised release for distributing methamphetamine, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Jae W. Chung, Acting Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Alicia Jones, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, join U.S. Attorney Ferguson in making the announcement.

According to court records and court proceedings, law enforcement learned that Peak was distributing firearms and methamphetamine in and around Asheville and Hendersonville. Investigators used a confidential informant (CI) to purchase firearms and methamphetamine from Peak at least two times between July and August 2022. The first time Peak sold the CI a 9mm pistol with an obliterated serial number in Hendersonville, and later, sold 36.82 grams of methamphetamine in Asheville. The second time Peak sold the CI 27.175 grams of methamphetamine and a .32 caliber pistol.

Peak pleaded guilty on August 16, 2024, to distribution of methamphetamine. Court records indicate Peak has prior state convictions and as a result he qualified for an increased sentence as a career offender. Peak will be transferred to the custody of the Federal Bureau of Prisons after he completes his state prison sentence.

In making today’s announcement, U.S. Attorney Ferguson thanked the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Buncombe Country Sheriff’s Office, the Henderson County Sheriff’s Office, and the Asheville Police Department for their investigation of the case.

Assistant U.S. Attorney Christopher S. Hess of the U.S. Attorney’s Office in Asheville handled the prosecution.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

CHARLOTTE, N.C. – U.S. Attorney Russ Ferguson announced today that the U.S. Attorney’s Office has filed separate criminal charges against 18 defendants as part of Operation Take Back America, for violations that include straw purchasing of firearms, bank robbery, possession of a firearm by a convicted felon, possession of a firearm by an illegal alien, illegal reentry, and failure to notify a change of address.

The 18 defendants charged last week and the alleged offenses include:

Walter Adonai Rivera Chinchilla, 24, of Charlotte, and Fausto Odalis Reyes Guevara, 27, of Honduras, are charged via a superseding indictment of conspiracy to provide a false statement during the purchase of a firearm. Guevara is also charged with possession of a firearm by a person unlawfully in the United States. According to the superseding indictment, on October 12, 2024, Guevara messaged Chinchilla that Guevara needed a “17” and a white Beretta for a good price. Two days later, Chinchilla allegedly purchased a Beretta 92FS pistol from Guns Too, a licensed firearms dealer located in Caldwell County. When he purchased the firearm from Guns Too, Chinchilla allegedly lied on the forms, falsely attesting that he was the actual buyer of the firearm when he was in fact buying it for Guevara. The indictment further alleges that on the same day Chinchilla purchased a second firearm, a Glock 45 pistol, from Foothills Jewelry & Loan, a licensed firearms dealer in Catawba County. It is further alleged that Chinchilla lied again on the forms falsely attesting that he was the actual buyer of the firearm when he knew he was buying it for Guevara. Chinchilla is also facing additional charges including trafficking in firearms, making a false statement during the purchase of a firearm, and dealing in firearms without a license.

Jose Francisco Meraz-Villatoro, 31, of Mexico, is charged with unlawful possession of a firearm by an alien and illegal reentry by an alien. It is alleged that Meraz-Villatoro unlawfully possessed two firearms: a Glock 43 9mm handgun and a Girsan Regard MC 9mm handgun. Meraz-Villatoro was previously deported from the United States three times: in September 2013, in July 2014, and again in November 2022.

Carlos Sarmiento-Ochoa, 20, of Honduras, is charged with unlawful possession of a firearm by an alien and illegal reentry by an alien. It is alleged in the indictment that Sarmiento-Ochoa unlawfully possessed a Glock 23, 40 caliber handgun, and that he was previously deported from the United States in May 2018 and again in October 2019.

Gial Obed Rodas-Hernandez, 20, of Honduras, is charged with unlawful possession of a firearm by an alien and illegal reentry by an alien. The indictment alleges that Rodas-Hernandez unlawfully possessed a Taurus PT709 handgun, 9mm, and that he was previously deported from the United States in February 2021.

Jose Alberto Velazquez-Trejo, 41, of Mexico, is charged with unlawful possession of a firearm by an alien and illegal reentry by an alien. The indictment alleges that Velazquez-Trejo unlawfully possessed a Sig Sauer P226 handgun. Velazquez-Trejo was also previously deported from the United States in May 2008.

Norman Enrique Lopez-Santamaria, 42, of Honduras, is charged with illegally reentering into the United States and failure to notify of a change of address. Lopez-Santamaria was previously deported from the United States four times: in October 2002, in July 2009, in August 2010, and again in May 2014.

Rogelio Hernandez-Flores, 50, of Mexico, is charged with illegally reentering the United States and failure to notify of a change of address. Hernandez-Flores was previously deported from the United States three times: in August 1997, July 2003, and again in November 2007.

Luis Zamora-Cruz, 47, of Mexico, is charged with illegally reentering the United States and failure to notify of a change of address. Zamora-Cruz was previously deported from the United States in July 2010 and again in May 2017.

Christian Emanuel Valladares-Sierra, 25, of Honduras, is charged with illegally reentering the United States and failure to notify of a change of address. Valladares-Sierra was previously deported from the United States in September 2018.

Josue Oveniel Martinez-Avalo, 31, of Honduras, is charged with illegally reentering into the United States and failure to notify of a change of address. Martinez-Avalo was previously deported from the United States in June 2014.

Luis Alfredo Navarrete Pastrana, 32, of Mexico, is charged with illegal reentry into the United States. Pastrana was previously deported from the United States in October 2021.

Bryan Flowers, 53, of Hickory, N.C., is charged with bank robbery. According to the indictment, on April 17, 2025, Flowers allegedly robbed the Peoples Bank located in Lincolnton, N.C., by force, violence, and intimidation.

Dwayne Furlow Chaney, 40, of Charlotte, is charged with possession of a firearm by a felon. Chaney allegedly illegally possessed a Smith & Wesson M&P, .40 caliber pistol, and did so knowing he was prohibited from possessing a firearm following a prior criminal conviction.

Marshall Demetrius Rice, 45, of Charlotte, is charged with possession of a firearm by a felon. The indictment alleges that Rice illegally possessed a Smith & Wesson, model SD9VE, 9mm pistol, and did so knowing he was prohibited from possessing a firearm following a prior criminal conviction.

Damiyus Diamonte Fowler, 28, of Charlotte, is charged with possession of a firearm by a felon. Fowler allegedly illegally possessed a Glock 19, Gen 5 9mm caliber pistol, and did so knowing he was prohibited from possessing a firearm following a prior criminal conviction.

Aaron Deondre Conway, 41, of Charlotte, is charged with possession of a firearm by a felon. The indictment alleges that Conway illegally possessed a Walther, Model PPK/S .380 caliber pistol, and did so knowing he was prohibited from possessing a firearm following a prior criminal conviction.

Jamil Omire Ali, 31, of Charlotte, is charged with possession of a firearm by a felon. Ali allegedly illegally possessed a Smith & Wesson M&P Shield, .40 caliber pistol, and did so knowing he was prohibited from possessing a firearm following a prior criminal conviction.

Operation Take Back America is a nationwide initiative to repel the invasion of illegal immigration, achieve total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

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

In making today’s announcement, U.S. Attorney Ferguson credited Homeland Security Investigations, Immigration and Customs Enforcement Removal Operations, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for their investigations that led to the charges. U.S. Attorney Ferguson also commended the local law enforcement agencies that assisted in the investigation and apprehension of the defendants.

Assistant U.S. Attorneys with the Criminal Division of the U.S. Attorney’s Office in Charlotte are prosecuting the cases. 

CHARLOTTE, N.C. – U.S. Attorney Russ Ferguson announced today that federal charges were filed against Jon Patrick Kubler, 52, of Redondo Beach, California, for allegedly orchestrating a $4 million investment scheme that targeted elderly and vulnerable victims.

James C. Barnacle, Jr., Acting Special Agent in Charge of the FBI in North Carolina, joins U.S. Attorney Ferguson in making today’s announcement.

According to allegations in the criminal indictment, from December 2017 to April 2023, Kubler defrauded about 30 investors out of more than $4 million through an investment fraud scheme.

Despite not being licensed as an investment adviser, Kubler allegedly provided investment planning and management services to victims who were unsophisticated investors, elderly, and the beneficiaries of settlements or life insurance proceeds. Throughout the scheme, Kubler allegedly made false and fraudulent representations to victims, concealed and omitted material facts, and told deceptive half-truths to induce victims to invest in commercial real estate through companies he owned and operated, including Aksarben Evolution, LLC and Green Saddle, LLC.

To further the scheme and to convince investors their investments were profitable, Kubler allegedly made Ponzi-style payments to victims, using new investors’ money to pay existing investors, purporting the pay-outs were the result of successful investing and not funds from new victims Kubler had solicited. It is further alleged that Kubler used a portion of the investors’ money to pay for personal expenses and to make cash withdrawals, among others.

According to allegations in the indictment, in 2022, a victim investor received a letter from U.S. Securities and Exchange Commission (SEC) regarding its investigation into alleged securities fraud by Kubler. In an effort to conceal the scheme and that he was being investigated by the SEC, Kubler misled the victim by telling her that she did not need to respond to the SEC and that it was normal to receive a letter from the SEC after receiving a large settlement from a third party, as the victim had.

Kubler is charged with securities fraud and transactional money laundering. If convicted, he faces a maximum sentence of 20 years in prison for the securities fraud offense and 10 years for the transactional money laundering offense. A federal district court judge will determine any sentence imposed after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Ferguson thanked the FBI in Charlotte for its investigation of the case.

In addition to the criminal charges, in September 2023, the SEC announced that it obtained a temporary asset freeze, restraining order, and other emergency relief in the U.S. District court in the District of Nebraska against Kubler and several of the entities under his control, for allegedly engaging in a multi-year Ponzi scheme that misappropriated and misused investors’ funds. A final judgment was entered on January 22, 2025, in which Kubler agreed to be permanently enjoined from violating the securities laws and to pay disgorgement and civil penalties.

Special Assistant U.S. Attorney Eric Frick and Assistant U.S. Attorney Graham Billings are in charge of the prosecution.

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

CHARLOTTE, N.C. – A federal grand jury in Charlotte has returned a criminal indictment charging Tiawana Brown, 53, and her daughters, Tijema Brown, 30, and Antionette Rouse, 33, all of Charlotte, with wire fraud conspiracy and wire fraud in connection with fraudulent applications filed to falsely obtain COVID pandemic relief funds, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. 

James C. Barnacle, Jr., Acting Special Agent in Charge of the FBI in North Carolina, joins U.S. Attorney Ferguson in making today’s announcement.

According to allegations in the indictment, between April 2020 and September 2021, the defendants conspired to execute a scheme to defraud the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program and its Paycheck Protection Program (PPP) and obtain COVID pandemic relief funds for their purported businesses, through the submission of loan applications that contained false information or false documentation. It is alleged that the false documentation generally included fake and fraudulent tax forms, among other misrepresentations. It is further alleged that the defendants submitted false statements to obtain forgiveness of the PPP loans. In total, the defendants allegedly submitted at least 15 applications for EIDL or PPP funds and falsely obtained at least $124,165 in connection with their scheme to defraud.

The indictment also alleges that the EIDL and PPP funds were deposited into bank accounts controlled by the defendants. Instead of using the pandemic relief funds to pay for qualifying expenses as purported in the loan applications, the defendants allegedly used the proceeds on personal expenses, including allegedly approximately $15,000 on a personal birthday party for Tiawana Brown.

The defendants are charged with wire fraud conspiracy and wire fraud. If convicted, they face maximum sentence of 20 years in prison for each offense charged in the indictment. A federal district court judge will determine any sentence imposed after considering the U.S. Sentencing Guidelines and other statutory factors.

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

In making today’s announcement, U.S. Attorney Ferguson commended the FBI in Charlotte for their work on the investigation.

Assistant U.S. Attorney Matthew Warren with the U.S. Attorney’s Office in Charlotte is prosecuting the case.

Since the inception of the Coronavirus Aid, Relief, and Economic Security Act, the U.S. Attorney’s Office has prosecuted 35 defendants. The Office’s enforcement efforts in regard to COVID fraud also include actions to impose monetary judgments and collect assets to recoup some of what was wrongfully taken from taxpayer funds. These actions include criminal and civil forfeiture, criminal restitution, and civil False Claims Act cases. To-date, in dozens of COVID fraud cases, the Western District has already obtained almost $18 million in judgments or settlements and collected over $5.5 million in assets.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. 

CHARLOTTE, N.C. – Steven Andiloro, 53, of Mooresville, N.C., was sentenced today to 45 months in prison followed by three years of supervised release for orchestrating a $6.1 million investment fraud scheme and fraudulently obtaining over $2.6 million in COVID relief funds, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also ordered Andiloro to pay $5,341.155 in restitution the victims of his fraud.

Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and James C. Barnacle, Jr., Acting Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, and Amelaka McCall-Brathwaite, Special Agent in Charge of the Small Business Administration, Office of Inspector General, join U.S. Attorney Ferguson in making today’s announcement.

According to documents filed in the case and the sentencing hearing, from 2018 to 2021, Andiloro operated an investment fraud scheme where he induced victims to invest in businesses, both real and fictitious, by making false representations about where and how the investors’ money would be invested. For example, some of Andiloro’s victims were told their money would be invested into his car service business, while others believed they were investing into a non-existent marijuana dispensary business. Contrary to representations made to victims, Andiloro did not invest the money as promised. Instead, he used the funds to pay for personal expenses and to operate a Ponzi scheme, where he used money from new investors to pay earlier investors purporting that the returns were the result of profitable investments.

In addition to the investment scheme, Andiloro also engaged in COVID fraud. Court records show that, from April 2020 to March 2021, Andiloro obtained funds from the Paycheck Protection Program (PPP) by submitting fraudulent applications for disaster relief loans intended for businesses that suffered economic hardship due to the pandemic. To obtain the PPP funds, Andiloro submitted applications that contained false financial information about his businesses, including fake employment data and inflated revenues, costs, and payroll expenses. Andiloro received more than $2.6 million in disaster relief funds, which he used to fund his personal lifestyle and to make payments in furtherance of the investment scheme.

Andiloro remains released on bond. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney Ferguson thanked the U.S. Secret Service, the FBI, and the SBA-OIG for their investigation of the case.

Assistant U.S. Attorneys Graham Billings and Katherine Armstrong with the U.S. Attorney’s Office in Charlotte prosecuted the case.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. 

ASHEVILLE, N.C. – A previously-convicted child predator was sentenced to 192 months in prison today for distribution of child sexual abuse material (CSAM), announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Justin Matthew Adkins, 40, of Marion, North Carolina, was also ordered to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.

According to records, Adkins was convicted of Second-Degree Exploitation of a Minor in Buncombe County and was sentenced to a term of imprisonment. Adkins was released from state custody in April 2023, and was placed on post-release supervision until 2028. On November 7, 2023, officers with the North Carolina Department of Adult Corrections, deputies with the McDowell County Sheriff’s Office, and deputy marshals with the U.S. Marshals Service conducted a probation search at Adkins’ home. During the search, law enforcement reviewed Adkins’s electronic devices for compliance with his post-release conditions and found that the defendant possessed CSAM. Law enforcement also seized narcotics and drug paraphernalia.

Court records show that a computer forensic analyst with Homeland Security Investigations (HSI) analyzed Adkins’s electronic devices and located thousands of CSAM images and videos depicting the sexual abuse of prepubescent children. The analysis also revealed that Adkins had distributed CSAM to other individuals online.

On December 18, 2024, Adkins pleaded guilty to distribution of child pornography. He is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney Ferguson commended HSI in Greenville, the U.S. Marshals Service, the North Carolina Department of Adult Corrections, and the McDowell County Sheriff’s Office.

Assistant United States Attorney Alexis Solheim of the U.S. Attorney’s Office in Asheville prosecuted the case.

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

ASHEVILLE, N.C. – Zachery Micah Rice, a 35-year-old Asheville man, was sentenced today to 342 months in prison for his role in a drug trafficking ring that distributed many kilograms of fentanyl, methamphetamine and other drugs in Asheville and surrounding areas, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, Rice was sentenced to five years of supervised release.

According to records filed in the case, from 2021 to 2023, Rice was a major distributor methamphetamine, fentanyl, and cocaine in Buncombe, Henderson, and Transylvania Counties. He obtained the drugs from a supplier in Atlanta and transported them back to Western North Carolina for further distribution through a local network of traffickers and dealers. During one trip, law enforcement stopped and searched Rice’s vehicle, seizing over 11.5 kilograms of methamphetamine, a .40 caliber pistol modified to fully automatic with a machinegun conversion device known as a “Glock switch,” and more than $32,683 in cash. Investigators later executed search warrants at stash houses and a storage unit used by Rice, recovering kilogram quantities of fentanyl and methamphetamine, multiple firearms, including high-capacity magazines ammunition, digital scales, drug paraphernalia used for drug distribution, and more than $27,470.

Rice pleaded guilty on October 18, 2024, to conspiracy to possess methamphetamine, fentanyl, and cocaine, possession with intent to distribute methamphetamine, possession of a firearm by a felon, and possession of a machinegun.

Rice remains in the custody of the U.S. Marshals Service pending placement by the federal Bureau of Prisons.

In making today’s announcement, U.S. Attorney Ferguson thanked the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Indian Affairs, the Buncombe County Sheriff’s Office, the North Carolina State Bureau of Investigation the Henderson County Sheriff’s Office, the Anderson County Sheriff’s Office in South Carolina,  the Asheville Police Department, the Waynesville Police Department, the Cherokee Indian Police Department, the Rutherford County Sheriff’s Office, the Transylvania County Sheriff’s Office, the Haywood County Sheriff’s Office, the Swain County Sheriff’s Office, the Jackson County Sheriff’s Office, the Clay County Sheriff’s Office, and the Spartanburg County Sheriff’s Office in South Carolina for their investigation of the case.

Assistant U.S. Attorney Christopher S. Hess of the U.S. Attorney’s Office in Asheville handled the prosecution.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

 

ASHEVILLE, N.C. – Franklin Carlos Fair, 55, of Arden, N.C., was sentenced today to 134 months in prison followed by five years of supervised release for trafficking fentanyl and methamphetamine, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

According to documents filed with the court and proceedings, in July 2023, law enforcement learned that Fair, who had prior state convictions for drug trafficking, was distributing kilogram amounts of methamphetamine and fentanyl in Buncombe County. During a November 7, 2023, traffic stop in Anderson, South Carolina, deputies stopped Fair as he traveled from Atlanta to Western North Carolina. Deputies found nearly $3,800 in cash in Fair’s pockets. They also recovered a heat-sealed package and a plastic bag that contained more than 255 grams of fentanyl, which Fair had tossed out the car window before he was stopped.

According to court documents, on April 17, 2024, an individual cooperating with law enforcement arranged to buy from Fair $4,400 worth of methamphetamine and fentanyl. Fair was arrested when he arrived at the agreed location to make the drug sale. After Fair was taken into custody, law enforcement searched his vehicle and recovered more than a half a kilogram of methamphetamine and over 20 grams of fentanyl.

On October 23, 2024, Fair pleaded guilty to possession with intent to distribute methamphetamine and fentanyl. He remains in the custody of the U.S. Marshals Service pending placement by the Federal Bureau of Prisons.

In making today’s announcement, U.S. Attorney Ferguson thanked the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Indian Affairs, the Buncombe County Sheriff’s Office, the Anderson County Sheriff’s Office in South Carolina, and Waynesville Police Department for their investigation of the case.

Assistant U.S. Attorney Christopher S. Hess of the U.S. Attorney’s Office in Asheville handled the prosecution.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
 

CHARLOTTE, N.C. – A man who used a privately made and unregistered firearm, commonly known as a “ghost gun,” to carjack a vehicle on a college campus was sentenced yesterday to seven years in prison for a firearms offense, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Mark Jordan Williams, 37, was also ordered to serve three years of supervised release following the completion of his prison term.

Alicia Jones, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney Ferguson in making today’s announcement.

According to court documents and court proceedings, on March 23, 2023, an individual identified as L.C. was sitting in a Jeep Wrangler, parked on the campus of the University of North Carolina-Charlotte. Court records show that Williams approached the vehicle, pointed a handgun at L.C. and ordered L.C. out of the car. Williams then took L.C.’s phone, got into the Jeep, and drove away. Williams was located and arrested later that evening while inside the Jeep. When Williams was arrested, a .40 caliber Polymer 80 handgun was recovered from inside the vehicle as well. During the investigation, law enforcement determined that Williams has multiple prior criminal convictions and he prohibited from possessing a firearm.

On January 9, 2025, Williams pleaded guilty to possession and brandishing of a firearm in furtherance of a crime of violence. He is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. 

The ATF investigated the case and the U.S. Attorney’s Office in Charlotte handled the prosecution.

CHARLOTTE, N.C. – Dujuan Marquise McNeil, 39, of Charlotte, was sentenced yesterday to 10 years in prison followed by three years of supervised release for illegal possession of a firearm after he assaulted two U.S. Postal Service mail carriers on the same day, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Rodney Hopkins, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, joins U.S. Attorney Ferguson in making today’s announcement.

“My office will continue to aggressively prosecute those that threaten or harm our postal workers,” said U.S. Attorney Ferguson.  “Postal workers are hard-working Americans that are vital to our way of life and essential to our system of commerce.”

“A core mission of the U.S. Postal Inspection Service is to provide a safe environment for Postal employees and the American public. Illegal weapons threaten the safety of all our communities,” said Inspector in Charge Hopkins. “We extend our utmost appreciation to our law enforcement partners and the U.S. Attorney’s Office in the Western District of North Carolina for supporting our mission and bringing this investigation to a successful conclusion.”

According to court records, on June 1, 2023, McNeil, used firearms to threaten two U.S. Postal Service mail carriers. In both instances, McNeil used his vehicle to block a mail truck, before threatening the carrier inside with his guns. McNeil believed someone with the post office stole an unidentified item from his package. McNeil also went to a local post-office complain about the alleged theft. Clerks at that office reported that McNeil stated he would kill whichever carrier was responsible for the alleged theft.

During the investigation, law enforcement determined the McNeil had multiple prior criminal convictions, including Possession of a Firearm by a Felon, Discharge of a Weapon into Occupied Property, and Domestic Violence Protective Order Violation, and was prohibited from possessing firearms.

On June 14, 2023, a federal search warrant was executed at McNeil’s residence, where law enforcement found and seized multiple firearms, including: three 9mm semi-automatic pistols (one fitted with an extended magazine); a Polymer 80 9mm semi-automatic pistol (commonly referred to as a “ghost gun”) with an extended magazine; an AR15 semi-automatic rifle; multiple magazines; and nearly 300 rounds of ammunition.

On October 30, 2024, McNeil pleaded guilty to possession of a firearm by a convicted felon. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons.

In making today’s announcement U.S. Attorney Ferguson commended USPIS for their work in this investigation and thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charlotte Mecklenburg Police Department for their assistance. 

The U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – Dontavis Romario Truesdale, 28, of Charlotte, was sentenced today to 27 months in prison followed by two years of supervised release for financial institution fraud, after he stole $1.9 million in business checks from the post office where he worked, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Kathleen Woodson, Special Agent in Charge of the United States Postal Service, Office of the Inspector General (USPS-OIG) for the Mid-Atlantic Area Field Office (MAAFO), Rodney Hopkins, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney Ferguson in making today’s announcement.

According to court records, from November 2022 to April 2023, Truesdale worked as a processing clerk at the Ballantyne Post Office in Charlotte. Court records show that Truesdale used his position and access to steal hundreds of checks of businesses that maintained post office boxes at that location. Truesdale then sold the stolen checks to other co-conspirators who committed bank fraud. Over the course of the scheme, Truesdale stole more than 200 checks with a total face value of over $1.9 million.

Following the sentencing hearing, Truesdale was released on bond. He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility. 

In making today’s announcement, U.S. Attorney Ferguson thanked USPS-OIG, USPIS and CMPD for their investigation of the case.

Assistant U.S. Attorney Kenneth Smith with the U.S. Attorney’s Office in Charlotte prosecuted the case. 

CHARLOTTE, N.C. – Alicia England, 32, of Chattanooga, Tennessee, appeared before U.S. Magistrate Judge Susan C. Rodriguez and pleaded guilty today to wire fraud and aggravated identity theft for orchestrating a scheme involving fraudulent deed transfers and sales of properties in North Carolina and elsewhere, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney Ferguson in making today’s announcement.

According to filed plea documents and today’s court hearing, from October 2022 to August 2024, England engaged in a wire fraud scheme involving, among other things, the filing of bogus deeds for residential real estate in North Carolina and other states, and the misuse of property owners’ personal identifying information (PII). As part of the scheme, England caused bogus deeds to be filed for certain properties, and then sold, and attempted to sell, those properties to third parties. England’s fraudulent scheme involved at least 19 properties worth over $1.4 million.

As England admitted in court today, the defendant stole the identities of various living and deceased individuals and used those identities and PII to open bank accounts, file fraudulent deeds, and enter into real estate sales for properties she did not actually own. For example, England utilized falsified trust documents in the name of VGR, a deceased individual. England admitted to causing the electronic filing of fraudulent quitclaim deeds purporting to transfer multiple real estate parcels from identity theft victims to the VGR Trust. After the fraudulent quitclaim deeds were filed, England advertised those properties for sale, including through online marketplaces, like Facebook Marketplace. England then negotiated the sales of the properties with interested buyers and arranged for the proceeds of the sales to be wired to bank accounts she controlled, including accounts in her own name, the VGR Trust, and in the names of other identity theft victims.

England pleaded guilty to wire fraud which carries a maximum prison sentence of 20 years, and aggravated identity theft, which carries a mandatory two-year prison sentence consecutive to any other term of imprisonment imposed. England was released on bond following the plea hearing. A sentencing date has not been set.

In making today’s announcement, U.S. Attorney Ferguson thanked the U.S. Secret Service for the investigation of this case and the Charlotte Mecklenburg Police Department for its assistance.

Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

CHARLOTTE, N.C. – Johnathan Trent Thomas, 27, of Linwood, North Carolina, appeared in federal court today on charges of making threats of violence against federal law enforcement officers, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Thomas was arrested Friday, May 16, and remains in custody pending a detention hearing.   

Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, joins U.S. Attorney Ferguson in making today’s announcement.

According to allegations in the criminal complaint and the affidavit unsealed today in court, on Wednesday, May 14, 2025, at approximately 12:00 p.m., a caller, later identified as Thomas, contacted the Charlotte Mecklenburg Police Department (CMPD) and threatened to kill Immigration and Customs Enforcement (ICE) agents and CMPD officers if immigration enforcement actions did not stop. During a second telephone call with a CMPD officer, Thomas allegedly warned that he was coming to Charlotte with armor piercing ammunition, night vision devices, and body armor to kill law enforcement officers and threatened to “shoot them all” if he observed anyone making arrests. Thomas allegedly was referencing arrests made previously by ICE federal agents on Albemarle Road in Charlotte.

The affidavit further alleges that Thomas stated that if a police officer pointed a gun at him, he was just going to open fire. Thomas also allegedly said that he would “Swiss cheese” the officers if they were doing the same thing they did before, meaning making arrests. Thomas allegedly made additional threats to law enforcement, including that he had Tannerite (an explosive) all around his house if the police came, and referenced April 29, 2024, which is the date that four law enforcement officers were killed in the line of duty in Charlotte, warning that he “could do a whole lot better than that.” 

The filed affidavit also alleges that Thomas has an extensive history of threatening law enforcement, to include the Davidson County Sheriff’s Office and CMPD, and on previous occasions had followed CMPD officers in marked patrol cars while they were attempting to fulfill their official duties.

On Friday, HSI agents also executed a search warrant at Thomas’s residence, where they seized three rifles and a handgun.  

Thomas is charged with threatening to assault or murder federal law enforcement officers which carries a maximum penalty of 10 years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

In making today’s announcement, U.S. Attorney Ferguson commended HSI for the investigation of the case and thanked the U.S. Attorney’s Office in the Middle District of North Carolina, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Davidson County Sheriff’s Office, the Waxhaw Police Department, and the Charlotte Mecklenburg Police Department for their assistance.

Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

A criminal complaint is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

CHARLOTTE, N.C. – In observance of National Police Week, the U.S. Attorney’s Office recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement and pays tribute to the officers who have fallen in the line of duty. National Police Week is observed Sunday, May 11, through Saturday, May 17, 2025.

“During National Police Week, we honor and remember the brave men and women in law enforcement who made the ultimate sacrifice in the line of duty. Their courage, dedication, and selfless service in the face of danger will never be forgotten,” said U.S. Attorney Ferguson. “Law enforcement is too often criticized and does not receive enough credit for their work and sacrifice. We stand with the entire law enforcement community and express our deep gratitude for all of our officers’ commitment to justice and their tireless efforts to protect us with courage, honor, and distinction.”

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.  

In observance of National Police Week and in remembrance of North Carolina’s fallen law enforcement officers, U.S. Attorney Ferguson delivered the keynote address at the 40th Annual Peace Officers’ Memorial Day Ceremony in Concord and participated in Mecklenburg County’s Peace Officers’ Memorial Service in Charlotte.

The names of more than 345 officers killed in the line of duty who have been added to the wall at the National Law Enforcement Officers Memorial will be read on Tuesday, May 13, 2025, at the 37th Annual Candlelight Vigil in Washington, D.C. To view a livestream of this event, visit https://nleomf.org/memorial/programs/national-police-week-2025/candlelight-vigil/. To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org. 

CHARLOTTE, N.C. –  A recidivist sex offender was sentenced to 120 months in prison yesterday for possession of child sexual abuse material (CSAM), announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Registered sex offender Ricky Grover Aaron, 62, of Charlotte, a was also ordered to serve a lifetime of supervised release and pay restitution to his victims.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina joins U.S. Attorney Ferguson in making the announcement.

According to court documents and the sentencing hearing, the FBI was conducting an undercover online investigation to identify individuals sharing CSAM using peer-to-peer file sharing networks. Investigators determined that Aaron was utilizing a BitTorrent application to make CSAM available for others, and on multiple occasions, were able to download CSAM files from one or more of Aaron’s electronic devices.

In November 2022, a search warrant was executed at Aaron’s residence. Several electronic devices were seized and forensically examined. In total, investigators found that Aaron possessed the equivalent (when taking videos into account) of more than 300,000 CSAM images that depicted, among other things, minors including infants, toddlers, and children under the age of 12, being sexually abused and exploited, having violence inflicted upon them, appearing in bondage, and otherwise subjected to sado-masochistic conduct.

At the sentencing hearing, the Court also heard that Aaron failed to register as a sex offender in Mecklenburg County after he moved to North Carolina, as he was required to do because he had two convictions prior to this one, a federal conviction for receipt and possession of CSAM, and a state conviction for false imprisonment and aggravated exploitation of a minor in Tennessee.  Under the provisions of the Sex Offender Registration and Notification Act (SORNA) convicted sex offenders are required to register with the Sex Offender Registry Board in any state or jurisdiction where they work or reside.

On October 29, 2024, Aaron pleaded guilty to possession of child pornography involving a prepubescent minor or a minor who had not attained age 12. He is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney Ferguson commended the FBI for their investigation of the case.

Assistant United States Attorney Katherine Armstrong of the U.S. Attorney’s Office in Charlotte prosecuted the case.

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

Operation Restore Justice

This week, the FBI in North Carolina announced the results of Operation Restore Justice, following a coordinated enforcement effort to identify, track, and arrest child sex predators. The operation resulted in the rescue of 115 children and the arrest of 205 child sexual abuse offenders in the nationwide crackdown. The enforcement action was executed over the course of five days by all 55 FBI field offices, the Child Exploitation and Obscenity Section (CEOS) in the Department’s Criminal Division, and United States Attorney’s Offices around the country.

Among those arrested as part of Operation Restore Justice was a former Charlotte resident, Terrell Shawn Anderson, 30, who is charged in the Western District of North Carolina with distributing child sexual abuse material and possession of child sexual abuse material. Anderson was arrested in Atlanta and faces at least five years in federal prison and up to twenty years on each distribution count and up to twenty years on the possession count.

“We will aggressively prosecute these cases, as we do all cases against those who seek to exploit and abuse children,” said Russ Ferguson in the joint announcement made with the FBI. “The individuals charged and arrested in this operation are accused of engaging in conduct that harms children and perpetuates their abuse. I commend the FBI in North Carolina and the entire law enforcement community for their ongoing efforts to identify these perpetrators and bring them to justice so they cannot hurt another child.”

You can find additional information about the national Operation Restore Justice initiative here.

The charges against Anderson are allegations and he is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

CHARLOTTE, N.C. – Montavius Hancock, 29, of Charlotte, was sentenced today to 48 months in prison and three years of supervised release for conspiracy to commit offenses against the United States (mail theft and unlawful possession of a USPS arrow key) and possession of a firearm by a convicted felon, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.  Hancock pleaded guilty to these offenses on August 21, 2024.

Rodney Hopkins, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees North Carolina, Jeff Krafels, Special Agent in Charge of the United States Postal Service, Office of the Inspector General (USPS-OIG) for the Mid-Atlantic Area Field Office (MAAFO), which overseas Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney Ferguson in making the announcement.

According to court documents and the sentencing hearing, on January 13, 2024, Hancock was observed stealing U.S. mail from a business park in Charlotte using an “arrow key,” which is a master key used by the U.S. Postal Service. CMPD officers responded to the scene and attempted to stop Hancock’s vehicle as he fled the area. After Hancock was taken into custody, CMPD officers searched his vehicle where they recovered stolen mail from several locations around Charlotte. The face value of the checks contained within the stolen mail was over $400,000.

Hancock was also sentenced today for possession of a firearm by a convicted felon after he was charged under a separate criminal indictment. Court records show that on December 22, 2023, CMPD officers arrested Hancock for possessing a Smith and Wesson, model M&P Shield EZ, 9 mm pistol with an obliterated serial number. Hancock has previous felony convictions, including assault with a deadly weapon with intent to kill, and he is prohibited from possessing a firearm.

In making today’s announcement, U.S. Attorney Ferguson thanked the USPIS, USPS-OIG and CMPD for their investigation and recognized the Bureau of Alcohol, Tobacco, Firearms and Explosives for its invaluable assistance with the firearm investigation.

Special Assistant U.S. Attorney Eric Frick and Assistant U.S. Attorney Sara Kinlaw with the U.S. Attorney’s Office in Charlotte handled the prosecution.

To report suspected mail theft, and other mail-related crimes, tips, or incidents go to https://mailtheft.uspis.gov/ or call USPIS at 1-877-876-2455. Call 911 to report an active crime in progress.

CHARLOTTE, N.C. – Steven Osbey, of Kernersville, N.C., has agreed to entry of a consent judgment against him in the amount of $4,711,159.00 in favor of the United States and State of North Carolina (the Governments), subject to a separate agreement regarding his participation in the Governments’ ability to pay process. The judgment represents repayment to the government for allegations that Reign & Inspirations, LLC (R&I), a clinic co-owned by Osbey and Aljihad Shabazz, charged Medicaid for physician home visits that never occurred.

More specifically, the Governments alleged Osbey and Shabazz conspired to carry out an extensive health care fraud scheme wherein they submitted or caused to be submitted claims to NC Medicaid for in-home physician visits with patients that simply never occurred—in all, billing more than 30,000 hours of these purported physician visits and sometimes billing as if the physician provided over 100 in-home visits in a single day, purportedly lasting an hour each (an obvious physical impossibility).

This investigation was conducted in parallel between the civil and criminal divisions of the U.S. Attorney’s Office. Shabazz pleaded guilty to criminal healthcare fraud conspiracy and money laundering charges and was sentenced to 52 months in prison followed by two years of supervised release.

The civil settlement obtained in this matter was the result of a coordinated effort between the Department of Justice and the FBI field offices in Charlotte, with assistance from the Medicaid Investigations Division of the North Carolina Attorney General’s Office, and the Office of Inspector General of the United States Department of Health and Human Services. AUSAs Caroline McLean and Seth Johnson were responsible for the civil investigation.

The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

Two Chinese nationals and a California man, all members of a prolific Chinese money laundering organization (CMLO), pleaded guilty yesterday to money laundering charges involving drug trafficking proceeds.

According to court documents, Maoxuan Xia, 29, of China, Shao Neng Lin, 58, of Baldwin Park, California, and Zhou Yu, 42, of China, were members of the CMLO that laundered over $92 million in illicit funds, including proceeds from the importation and distribution of illegal drugs into the United States, primarily through Mexico. Xia was one of the most active members of the Organization, traveling throughout the United States to collect drug trafficking proceeds from U.S.-based drug traffickers and deposit those illicit funds, using both real and fake identities, into shell company bank accounts registered by other members of the CMLO, such as Lin and Yu.

Xia and Yu each pleaded guilty to one count of money laundering conspiracy, one count of money laundering to conceal the nature, location, source, ownership, and control of the illicit proceeds, and one count of monetary transactions involving criminally derived property greater than $10,000. Lin pleaded guilty to one count of money laundering conspiracy, two counts of money laundering to conceal the nature, location, source, ownership, and control of the illicit proceeds, and two counts of monetary transactions involving criminally derived property greater than $10,000. Pursuant to his plea agreement, Xia admitted that he was personally responsible for laundering more than $30 million of illicit funds, including drug trafficking proceeds, in less than two years. Xia further admitted that he knew funds laundered in the conspiracy included drug trafficking proceeds or funds intended to promote drug trafficking. Pursuant to their respective plea agreements, Lin and Yu both admitted that they each received, through the shell company bank accounts that they created and operated for the CMLO, approximately $20 million in illicit funds, including drug trafficking proceeds. Lin and Yu both admitted that the total amount of illicit funds laundered in the conspiracy for which they had actual knowledge and involvement was approximately $40 million.

The defendants face a maximum penalty of 20 years in prison on each of the conspiracy and money laundering counts and a maximum of 10 years in prison on each of the monetary transactions counts. A federal district court judge will determine their respective sentences after considering the U.S. Sentencing Guidelines and other statutory factors.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, U.S. Attorney Russ Ferguson for the Western District of North Carolina, Acting Special Agent in Charge Jae W. Chung of the Drug Enforcement Administration (DEA) Atlanta Division, and Special Agent in Charge Donald “Trey” Eakins of the Internal Revenue Service Criminal Investigation (IRS-CI) Charlotte Field Office made the announcement.

The DEA Charlotte District Office and the IRS-CI Charlotte Field Office are investigating the case.

Acting Assistant Deputy Chief Mingda Hang, Acting Deputy Chief Melanie Alsworth, and Trial Attorney Jayce Born of the Justice Department’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorneys Alfredo De La Rosa and Seth Johnson for the Western District of North Carolina are prosecuting the case.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhoods.

CHARLOTTE, N.C. – Two Chinese nationals and a California man, all members of a prolific Chinese money laundering organization (CMLO), have pleaded guilty to money laundering charges involving drug trafficking proceeds, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, Acting Special Agent in Charge Jae W. Chung of the Drug Enforcement Administration (DEA), Atlanta Division, and Special Agent in Charge Donald “Trey” Eakins of the Internal Revenue Service, Criminal Investigation (IRS-CI), Charlotte Field Office, join U.S. Attorney Ferguson in making the announcement.

According to court documents, Maoxuan Xia, 29, of China, Shao Neng Lin, 58, of Baldwin Park, California, and Zhou Yu, 42, of China, were members of the CMLO that laundered over $92 million in illicit funds, including proceeds from the importation and distribution of illegal drugs into the United States, primarily through Mexico. Xia was one of the most active members of the Organization, traveling throughout the United States to collect drug trafficking proceeds from U.S.-based drug traffickers and deposit those illicit funds, using both real and fake identities, into shell company bank accounts registered by other members of the CMLO, such as Lin and Yu.

Xia and Yu each pleaded guilty to one count of money laundering conspiracy, one count of money laundering to conceal the nature, location, source, ownership, and control of the illicit proceeds, and one count of monetary transactions involving criminally derived property greater than $10,000. Lin pleaded guilty to one count of money laundering conspiracy, two counts of money laundering to conceal the nature, location, source, ownership, and control of the illicit proceeds, and two counts of monetary transactions involving criminally derived property greater than $10,000. Pursuant to his plea agreement, Xia admitted that he was personally responsible for laundering more than $30 million of illicit funds, including drug trafficking proceeds, in less than two years. Xia further admitted that he knew funds laundered in the conspiracy included drug trafficking proceeds or funds intended to promote drug trafficking. Pursuant to their respective plea agreements, Lin and Yu both admitted that they each received, through the shell company bank accounts that they created and operated for the CMLO, approximately $20 million in illicit funds, including drug trafficking proceeds. Lin and Yu both admitted that the total amount of illicit funds laundered in the conspiracy for which they had actual knowledge and involvement was approximately $40 million.

“Let this case be a warning to foreign money launderers and drug traffickers,” said U.S. Attorney Russ Ferguson. “We will work day and night to dismantle criminal operations that exploit our robust financial system to fund criminal networks, fuel addiction in our communities, and spread violence in our streets.”

“DEA strives every day to keep the American public safe from criminal organizations who threaten our communities,” said Acting Special Agent in Charge Chung. “This case demonstrates our ability to leverage every tool to attack and dismantle dangerous drug trafficking and money laundering organizations.” 

“IRS Criminal Investigation is committed to going after money laundering networks attempting to move cash made from the sale of drugs in the United States,” said Special Agent in Charge Eakins. “Our special agents will continue to use their financial expertise to follow the money trail while working alongside partner agencies to stop those who profit from drug sales in the United States.”

The defendants face a maximum penalty of 20 years in prison on each of the conspiracy and money laundering counts and a maximum of 10 years in prison on each of the monetary transactions counts. A federal district court judge will determine their respective sentences after considering the U.S. Sentencing Guidelines and other statutory factors.

The DEA and IRS-CI are investigating the case.

Acting Assistant Deputy Chief Mingda Hang and Trial Attorney Jayce Born of the Justice Department’s Narcotic and Dangerous Drug Section, and Assistant U.S. Attorneys Alfredo De La Rosa and Seth Johnson of the U.S. Attorney’s Office for the Western District of North Carolina are prosecuting the case.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhoods (PSN).

ASHEVILLE, N.C. – Kelly Woodrow Ross, 64, of Waynesville, N.C., was sentenced today to 46 months in prison followed by three years of supervised release for trafficking methamphetamine, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

According to court documents and court proceedings, in November 2023, the Haywood County Sheriff’s Office learned that Ross was distributing methamphetamine in the area. At the time, Ross was on federal supervised release for a prior federal drug conviction. Court records show that during the investigation into Ross’s drug distribution activities, law enforcement utilized confidential human sources to purchase more than 5.5 grams of methamphetamine from Ross. On November 28, 2023, investigators executed a search warrant at Ross’s residence. During the search, investigators seized methamphetamine, digital scales, and drug paraphernalia from Ross’s residence.

On September 20, 2024, Ross pleaded guilty to possession with intent to distribute methamphetamine. He remains in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney Ferguson thanked the Drug Enforcement Administration and the Haywood County Sheriff’s Office for their investigation of the case.

Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville prosecuted the case.

CHARLOTTE, N.C. – A Charlotte man was sentenced to prison today for his role in a multi-million dollar bank fraud scheme, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Bruce Howard Marko, 66, was sentenced to 12 months and a day in prison followed by two years of supervised release, and was ordered to pay restitution in the amount of $1.5 million. Marko pleaded guilty to conspiracy to commit wire fraud and bank fraud.

Marko’s three co-defendants, Kotto Yaphet Paul, 50, of Waxhaw, N.C., Latoya Tamieka Ford, 50, of Covington, Georgia, and Love Norman, 50, of West Palm Beach, Florida, have each pleaded guilty to wire fraud and bank fraud conspiracy and are awaiting sentencing. Paul also pleaded guilty to money laundering.

According to filed court documents and today’s sentencing hearing, beginning in 2018, Marko conspired with Peebles, Paul and Ford to orchestrate a fraudulent loan scheme that defrauded at least 17 federally insured financial institutions of more than $17 million. Marko participated directly in at least five of these fraudulent loans totaling over $2.8 million. To execute the scheme, Marko and his co-defendants submitted loan applications to financial institutions that contained fraudulent information, including false employment and income information, false tax returns, and misrepresentations regarding the applicants’ assets, liabilities, and the intended use the loan proceeds. Based on the fraudulent loan applications, Marko and his co-defendants secured at least 42 loans from the victim financial institutions. Contrary to information provided on the loan applications about the purposes of the loans, the defendants used the loan proceeds to purchase real estate, cover unrelated business expenses, make investments, make payments toward earlier loans, and pay for personal expenditures. Court documents show that the defendants defaulted on most of the loans, causing substantial losses to the victim financial institutions that issued the loans.

Four additional defendants were previously convicted of bank fraud conspiracy for their involvement in the scheme. Amrish D. Patel was sentenced to 15 months in prison, Dwight A. Peebles, Jr. was sentenced to 18 months in prison. Denise Woodard was ordered to serve 36 months in prison, and Derrick L. Harrison, was sentenced to a year and a day in prison. The defendants were also ordered to pay restitution ranging from $620,000 to more than $3.1 million.

In making today’s announcement, U.S. Attorney Ferguson credited the Office of the Inspector General of the Board of Governors of the Federal Reserve System, the Office of the Inspector General for the Federal Housing Finance Agency, the Office of the Inspector General for the Federal Deposit Insurance Corporation, the Federal Bureau of Investigation in Charlotte, and the Charlotte Field Office of the Internal Revenue Service’s Criminal Investigation, for the investigation of this case.

Assistant U.S. Attorney Don Gast with the U.S. Attorney’s Office in Asheville is prosecuting the case.

CHARLOTTE, N.C. – U.S. Attorney Russ Ferguson announced today that in April the U.S. Attorney’s Office charged 11 defendants with criminal charges related to firearms offenses and immigration-related violations as part of Operation Take Back America, a nationwide initiative to repel the invasion of illegal immigration, achieve total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from perpetrators of violent crime.

The defendants facing federal firearms charges are:

Steven Tyler Philbeck, 33, of Lincolnton, N.C., is charged with possession of a firearm by a convicted felon, possession of a firearm in furtherance of a drug trafficking crime, and distribution of methamphetamine. The indictment alleges that Philbeck distributed methamphetamine in Catawba County in February 2025, and illegally possessed a Glock 19 Gen4, 9mm handgun in furtherance of the drug trafficking activities.

Naquan Damerius Blakeney, 24, of Charlotte, is charged with possession of a firearm by a felon. The indictment alleges that Blakeney illegally possessed a Glock Model 23, .40 caliber pistol, and did so knowing he was prohibited from possessing a firearm following a prior criminal conviction.

Justin Lloyd Coleman, 33, of Huntersville, N.C., is charged with two counts of possession of a machinegun and one count of possession of a firearm by a felon. The indictment alleges that Coleman illegally possessed one more machineguns, a pistol, and a rifle. Coleman has prior felony convictions, and he is prohibited from possessing firearms.

Kiren Nashawn Heath, 21, of Monroe, N.C., is charged with possession of a firearm by a convicted felon. The indictment alleges that Pressley possessed a Walther, model P99, 9mm pistol frame with a Smith & Wesson, model SW99, 9mm pistol slide, and did so knowing he was a convicted felon and was prohibited from possessing a firearm.

Daquan Devonte Jeter, 33, of Charlotte, was indicted for the unlawful possession of a firearm. Jeter is alleged to have unlawfully possessed what is commonly known as a “sawed-off” shotgun, knowing he had prior felony convictions.

Norris Lashane Myers, 47, of Lenoir, N.C., is charged with possession of a firearm by a convicted felon. The indictment alleges that Myers possessed a Taurus PT92AF, 9mm handgun, knowing he was a convicted felon and was prohibited from possessing a firearm.

Nathaniel Desean Nicholes, 25, of Charlotte, is charged with possession of a firearm by a felon. The indictment alleges that Nicholes, knowing that he had previously been convicted of multiple state felony charges for Breaking and Entering, unlawfully possessed a Glock, model 19, 9mm caliber semi-automatic pistol.

The defendants charged with immigration-related violations are:

Jose Guadalupe Cervantes Nava, 52, of Mexico, is charged with illegal reentry into the United States. Nava was previously deported from the United States four times in two months: on April 13, 2018, on April 20, 2018, on May 3, 2018, and again on May 20, 2018.

Remedios Arroyo Beltran, 51, of Mexico, is charged with illegally reentering into the United States. Beltran was previously deported from the United States three times: on April 22, 2019, on July 7, 2019, and again on July 12, 2019.

Erik Antonio Lopez-Hernandez, 21, of Honduras, is charged with illegally reentering into the United States. Lopez-Hernandez was previously deported from the United States in July 2023. He was arrested on February 22, 2025, by the Charlotte Mecklenburg Police Department, after the defendant allegedly attempted to flee and evade arrest for a traffic violation.

Darwin Gonzalez Navarijo, 40, of Guatemala, is charged with illegal reentry into the United States. Navarijo was previously deported from the United States three times: in June 2009, in November 2010, and again in June 2017.

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

In making today’s announcement, U.S. Attorney Ferguson credited Homeland Security Investigations, Immigration and Customs Enforcement – Emergency Removal Operations, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for their investigations that led to the charges. U.S. Attorney Ferguson also commended the local law enforcement agencies that assisted in the investigation and apprehension of the defendants, to include the Caldwell County Sheriff’s Office, the Catawba County Sheriff’s Office, the Union County Sheriff’s Office, the Charlotte Mecklenburg Police Department, the Hickory Police Department, and the Huntersville Police Department.

Assistant U.S. Attorneys with the Criminal Division of the U.S. Attorney’s Office in Charlotte are prosecuting the cases. 

CHARLOTTE, N.C. –Daniel Joseph Broadway, 53, of Charlotte, appeared in federal court today and pleaded guilty to possessing AI-generated images of minors engaged in sexually explicit conduct and child sexual abuse material (CSAM), announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney Ferguson in making today’s announcement.

According to plea documents and today’s court hearing, on December 12, 2023, CMPD officers executed a search warrant at Broadway’s Charlotte residence. From the residence, officers seized nine electronic devices that were later forensically analyzed and found to contain images and videos depicting child sexual abuse material. Some of the images and videos in Broadway’s possession had been AI-generated and some had not. A forensic analysis of the devices revealed that Broadway possessed 8,661 images and two videos of non-AI CSAM. Broadway also possessed 20,292 images and videos of AI-generated CSAM. Many of the non-AI and AI-generated CSAM depicted prepubescent minors that were nude or partially clothed, lasciviously displaying their genitals or engaging in sexual intercourse with adults.

Broadway pleaded guilty to possession and access with intent to view child pornography involving prepubescent minors and possession of obscene visual representations of the sexual abuse of children, each of which carry a maximum prison sentence of 20 years. Broadway was remanded into custody following his guilty plea. A sentencing date has not been set.

In making today’s announcement, U.S. Attorney Ferguson thanked FBI and CMPD for their investigation which led to the guilty plea.

Assistant U.S. Attorney Daniel Cervantes of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

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

CHARLOTTE, N.C. – Antoine Johnson, 49, and Kimberly Maddox, 44, formerly of Huntersville, N.C., currently residing in Georgia, were sentenced today for fraudulently obtaining approximately $2 million in bank loans and COVID-19 pandemic relief funds, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Johnson was ordered to serve 51 months in prison followed by three years of supervised release. Maddox was sentenced to 12 months in prison, with six months of home confinement, followed by three years of supervised release. The couple was also ordered to pay restitution in $3,037,868.10.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Ferguson in making today’s announcement.

According to court documents and today’s court hearings, the defendants owned and operated Pick Up and Go Moving International, Inc. and affiliated businesses (collectively, PUGMI). Johnson was the president of PUGMI and Maddox the vice president. Court documents show that, between 2018 and 2023, the defendants fraudulently applied for and obtained multiple lines of credit, bank loans, Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loan (EIDL) program loans on behalf of their businesses. Johnson and Maddox applied for loans totaling more than $3.4 million. To secure the loans, the defendants lied on more than 35 loan applications about PUGMI’s income, gross revenues, expenses, and number of employees, and submitted fabricated supporting documents that included fraudulent tax returns and fictitious financial statements. Court documents show that at the time the couple engaged in the fraudulent loan schemes, Johnson was on federal supervised release after he was convicted and sentenced to prison for mortgage fraud.

Johnson and Maddox previously pleaded guilty to conspiracy to commit bank fraud and wire fraud and making a false statement to a financial institution. They will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.

The FBI handled the investigation.

Assistant U.S. Attorneys Caryn Finley and Graham Billings of the U.S. Attorney’s Office in Charlotte prosecuted the case.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

CHARLOTTE, N.C. – Three members of the La Mara Salvatrucha gang (known as MS-13) were sentenced in federal court today for engaging in violent criminal conduct, including murder, in support of the criminal organization, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney Ferguson in making today’s announcement.

Christian Alejandro Garcia Santa Cruz, a/k/a “Crimen,” 32, of El Salvador, and Aderly Jose Veliz-Ronquillo, a/k/a “Chanchin,” 30, of Guatemala, were each sentenced to 35 years in prison for using a firearm during a crime of violence resulting in death for the 2022 murder of W.G.M. in front of a Charlotte nightclub. Luis Fernando Guardardo Moreno, a/k/a “Fantasma” and “Scrappy,” 24, of El Salvador, was sentenced to 20 years in prison followed by three years of supervised release for racketeering (RICO) conspiracy.

Two additional MS-13 members who held leadership roles within the gang, Fredy Mauricio Buruca, a/k/a “Piranha,” “Machete,” and “Insoportable,” 27, and Santos Guillermo Ramirez Mancia, a/k/a “Azazel,” “Timido,” and “Johnny,” 33, both of El Salvador, have pleaded guilty to RICO conspiracy and are awaiting sentencing. Buruca has also pleaded guilty to kidnapping a minor. A sixth MS-13 member charged in this case, Juan Francisco Sanchez Estrada, a/k/a “Nene” and “Turbo,” 31, of El Salvador, has pleaded guilty to RICO conspiracy and will be sentenced at a later date in the Middle District of North Carolina, following a consolidation of federal cases against him in each district.

“MS-13 is one of the most violent and dangerous criminal gangs operating in the United States.  MS-13 members use murder, robbery, kidnapping, drug trafficking, and extortion to support this criminal enterprise and tighten its grip on our communities,” said U.S. Attorney Ferguson. “But we are fighting back. This case has dismantled the local MS-13 clique, and we’re not done. Our goal is not just to prosecute violent gangs, but to eliminate them completely.”

“Today’s prison sentences should make it clear to MS-13 members and their associates, violence and senseless murder will not be tolerated in North Carolina. The FBI and our partners will use every tool available to disrupt and dismantle violent criminal terrorist organizations and bring offenders to justice,” said FBI Special Agent in Charge DeWitt.

According to filed court documents and court proceedings, the defendants were leaders and members of the MS-13 sub-unit, or clique, known as the Hollywood Locos Salvatrucha Clique (the HLS clique), which operated in and around the Western District of North Carolina and other areas in North Carolina, Virginia, Maryland, Washington, D.C., and elsewhere. From at least December 2018 and continuing through November 2022, as members of the HLS clique, the defendants engaged in a pattern of racketeering activity that consisted of multiple acts and threats involving murder, kidnapping, extortion, robbery, and drug trafficking.

The investigation into the gang’s criminal activity revealed that these criminal acts were sanctioned by MS-13 leadership and were committed to promote a climate a fear and intimidation within the gang; to maintain the gang’s control and to expand its territory; to enforce discipline within the gang and punish any acts of disrespect; to intimidate witnesses and discourage cooperation with law enforcement; and to retaliate against rivals, or “chavalas.”

Participation in criminal activity was also intended to increase respect and ranking of members within the gang and to open the door to promotion to a leadership position. Accordingly, Santa Cruz and Veliz-Ronquillo committed murder in aid of racketeering for the purpose of maintaining and increasing their position in the MS-13 enterprise.

According to court documents, on November 6, 2022, Santa Cruz, Mancia, and Veliz-Ronquillo were at a nightclub in Charlotte. Over the course of the evening, Santa Cruz, Mancia, and Veliz-Ronquillo got into an argument with several men at the parking lot of the nightclub. During the argument, Mancia identified himself as MS-13 to the other men. At some point, W.G.M. and Mancia shoved each other. Ronquillo then shot W.G.M. once and Santa-Cruz shot the victim three times, causing the victim to sustain fatal gunshot wounds. At today’s sentencing hearing, the government contended that through their involvement in W.G.M.’s murder, Santa Cruz and Veliz-Ronquillo demonstrated their full commitment to further the goals of MS-13 and to advance their reputation within the gang.

The defendants will remain in federal custody until they are transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement U.S. Attorney Ferguson commended the FBI, HSI, and the Charlotte Mecklenburg Police Department for their investigation of the case, and thanked the Davidson County Sheriff’s Office, the Kannapolis Police Department, the Monroe Police Department, the Prince William County (Virginia) Sheriff’s Office, and the Annapolis (Maryland) Police Department for their invaluable assistance.

Assistant U.S. Attorneys Erik Lindahl and David Kelly of the U.S. Attorney’s Office in Charlotte are prosecuting the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.

CHARLOTTE, N.C. – Joseph Lee Barnes, 35, of Wilmington, N.C. was sentenced to 151 months in prison today for distribution of child sexual abuse material (CSAM), announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Upon his release from prison, Barnes will be subject to a lifetime of supervised release and must register as a sex offender. U.S. District Judge Max O. Cogburn, Jr. also ordered Barnes to pay $89,000 in restitution.

Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, joins U.S. Attorney Ferguson in making today’s announcement.

According to court documents and today’s sentencing hearing, in February 2024, Barnes was in a private chatroom on an encrypted messaging platform that is dedicated to the exchange of CSAM and discussions of the sexual abuse and exploitation of children. Barnes shared with the chatroom three files that contained CSAM. An undercover agent monitoring the chatroom also received those files. The undercover agent then began to chat one-on-one with Barnes. During their communications, the undercover agent claimed to be an adult with access to a child. Barnes expressed an interest in engaging in illicit sexual acts with the child and arranged to meet with the undercover agent and have sex with the child. Barnes also told the undercover agent that he had previously sexually abused children in the United States and overseas.

According to court documents, the undercover agent and Barnes continued to communicate via text messages and online over the next few weeks, and Barnes continued to send the undercover agent additional CSAM. On March 14, 2024, Barnes traveled from Wilmington to Western North Carolina for the purpose of engaging in sexual acts with the child. Law enforcement arrested Barnes at the pre-arranged meeting location. Law enforcement also seized Barnes’s phone and tablet and discovered child pornography images and videos on it. On the same day, HSI agents in Wilmington executed a search warrant at Barnes’s apartment, seizing additional electronic devices and two external hard drives. A forensic analysis of the items seized revealed that Barnes maintained an extensive library of images and videos depicting the sexual abuse of children.

On October 30, 2024, Barnes pleaded guilty to distribution of child pornography. He is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney Ferguson commended HSI for their investigation of the case and thanked the USMS Carolinas Regional Fugitive Task Force

and the Waynesville Police Department for their invaluable assistance.

Assistant United States Attorney Alexis Solheim of the U.S. Attorney’s Office in Asheville prosecuted the case.

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

CHARLOTTE, N.C. – U.S. Attorney Russ Ferguson announced today that Bobby Gerald Duncan (“Duncan”) and DE & E Foods, Inc. d/b/a Hillbilly’s Barbeque and Steaks (“Hillbilly’s BBQ”) have agreed to pay $1,530,682.26 to resolve allegations that they violated the False Claims Act by knowingly obtaining $762,903 in pandemic relief funds, and then misusing those funds for Duncan’s own personal gain. The settlement further resolves allegations that Duncan and Hillbilly’s BBQ knowingly made false statements to obtain the relief funds, as well as obtain loan forgiveness of the Paycheck Protection Program (“PPP”) portion of the funds.

The United States civil complaint alleged that Duncan, through his restaurant Hillbilly’s BBQ, obtained the relief funds through an Economic Injury Disaster Loan (“EIDL”) and two PPP loans. Rather than using the funds for authorized purposes, including for payroll and other business-related expenses, Duncan misappropriated the funds for his own benefit, specifically to purchase a separate FedEx business with Duncan’s longtime friend.

Duncan did so by first transferring $100,000 of the relief funds from a Hillbilly’s BBQ corporate account to a personal account entitled “Vacation Account,” and then adding his friend as an account holder to artificially boost the friend's credit score for a separate SBA loan intended for the FedEx business purchase. When that failed, Duncan used the pandemic relief funds to buy the FedEx business outright for $750,000, by writing two large checks for its purchase directly from the Hillbilly’s BBQ business account (one for $400,000 and another for $350,000).

“Pandemic relief funds were meant to provide a financial lifeline to small businesses struggling to stay afloat during the unprecedented COVID crisis,” said U.S. Attorney Ferguson. “Where those funds were misused, we will pursue their return as part of our ongoing effort to curb waste, fraud, and abuse of taxpayer money.”

Assistant U.S. Attorney Seth Johnson of the U.S. Attorney’s Office in Charlotte is in charge of this case.

The claims resolved by the settlement are allegations only. There has been no determination of liability. 

ASHEVILLE, N.C. – Jordan Nathaniel Hedden, 32, was sentenced today to 121 months in prison followed by five years of supervised release for the 2023 kidnapping of an elderly victim, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Hedden’s co-conspirator, Stephanie Miranda Neace, 32, of Blairsville, Georgia, is currently awaiting sentencing, after a federal jury last week convicted her of kidnapping.

Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina joins U.S. Attorney Ferguson in making today’s announcement.

According to filed documents, court proceedings, and trial evidence presented at Neace’s trial, on November 30, 2023, the victim, a 71-year-old female, was driving from Georgia to North Carolina, when she saw the defendants walking. The victim offered the defendants a ride because it was cold outside. The defendants accepted the ride, and soon after they entered North Carolina, Hedden instructed the victim to drive to his car. When they arrived at the location, a car was not there. Hedden then ordered the victim to stop the vehicle, and when the victim refused, Hedden forced the victim to stop the car and get in the back seat. Hedden then took over driving.

According to court records, the victim began to cry and Hedden yelled at her and told her to shut up. Hedden appeared to be high and agitated and became paranoid that the victim had a tracking device. At one point, Hedden stopped the vehicle, and he and Neace searched the car and the victim herself for tracking devices. Then, they took the victim’s phone and disabled it. Hedden also demanded money from the victim, but the victim only had $2. Fearing for her safety, the victim told the defendants to take her to an ATM and the defendants agreed. During the drive into Tennessee, Hedden made the victim promise that she would not identify them to the police.

During the drive to the ATM, the victim convinced Hedden to let her withdraw money from a gas station ATM instead of a bank. The victim also told Hedden that she would give the defendants the money if they let her stay behind safely at the gas station. When they arrived at the gas station, the victim took her purse and her car key fob. She told Hedden to turn off the car so the headlights could not be seen from the people inside the gas station, and Hedden complied. As the victim and Hedden were walking toward the gas station, the victim began to run to the door and scream for help. Hedden ran back to the car, attempted to use it to flee but was unable to start the car without the key fob. Hedden and Neace then fled on foot and escaped into the woods but were apprehended days later.

On November 13, 2024, Hedden pleaded guilty to kidnapping and aiding and abetting. He is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney Ferguson thanked the FBI for their investigation of the case.

Assistant U.S. Attorneys Don Gast and Alexis Solheim of the U.S. Attorney’s Office in Asheville are in charge of the prosecution.

ASHEVILLE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Brandon Tyler Buchanan to 30 years in prison for second degree murder, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Buchanan, 33, an enrolled member of the Eastern Band of Cherokee Indians, was also ordered to serve five years of supervised release upon completion of his prison term and to pay $888,500 in restitution to the victim’s estate.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Carla Neadeau of the Cherokee Indian Police Department (CIPD) join U.S. Attorney Ferguson in making today’s announcement.

According to filed court records and court proceedings, on November 11, 2022, CIPD officers responded to a 911 call following reports of a shooting. When the officers arrived, Buchanan admitted to shooting someone. CIPD officers discovered the body of the victim, Kobe Toineeta, a short distance away behind a row of trees, who had sustained five gunshot wounds. Court documents show that a Smith & Wesson, Model M&P, .9mm handgun was later found in Buchanan’s apartment. Laboratory testing confirmed that it was the firearm Buchanan used to shoot and kill the victim.

On May 31, 2024, Buchanan pleaded guilty to second degree murder and remains in federal custody. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. 

In making today’s announcement U.S. Attorney Ferguson thanked the FBI and the Cherokee Indian Police Department for their investigation of the case.

Assistant U.S. Attorney Alex Scott of the U.S. Attorney’s Office in Asheville prosecuted the case.

ASHEVILLE, N.C. – A federal jury in Asheville returned a guilty verdict late yesterday against Stephanie Miranda Neace, 32, of Blairsville, Georgia, for the 2023 kidnapping and robbery of an elderly victim, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Neace’s co-defendant, Jordan Nathaniel Hedden, 31, of Murphy, N.C., pleaded guilty to kidnapping and will be sentenced on April 14.

Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina joins U.S. Attorney Ferguson in making today’s announcement.

“This was a frightening crime against an elderly victim who was just trying to help out of the kindness of her heart,” said U.S. Attorney Ferguson.  “People who commit crimes like this affect how we treat one another, and we are committed to bringing them to justice.”

According to court documents, trial evidence, and witness testimony, on November 30, 2023, the victim, a 71-year-old female, was driving from Georgia to North Carolina, when she saw the defendants walking. The victim offered the defendants a ride because it was cold outside. The defendants accepted the ride, and soon after they entered North Carolina, Hedden instructed the victim to drive to his car. When they arrived at the location, a car was not there. Hedden then ordered the victim to stop the vehicle, and when the victim refused, Hedden forced the victim to stop the car and get in the back seat. Hedden then took over driving.

According to evidence presented at trial, the victim began to cry and Hedden yelled at her and told her to shut up. Trial evidence showed that Hedden appeared to be high and agitated and became paranoid that the victim had a tracking device. At one point, Hedden stopped the vehicle, and he and Neace searched the car and the victim herself for tracking devices. Then, they took the victim’s phone and disabled it. Hedden also demanded money from the victim, but the victim only had $2. Fearing for her safety, the victim told the defendants to take her to an ATM and the defendants agreed. During the drive into Tennessee, Hedden made the victim promise that she would not identify them to the police.

During the drive to the ATM, the victim convinced Hedden to let her withdraw money from a gas station ATM instead of a bank. The victim also told Hedden that she would give the defendants the money if they let her stay behind safely at the gas station. When they arrived at the gas station, the victim took her purse and her car key fob. She told Hedden to turn off the car so the headlights could not be seen from the people inside the gas station, and Hedden complied. As the victim and Hedden were walking toward the gas station, the victim began to run to the door and scream for help. Hedden ran back to the car, attempted to use it to flee but was unable to start the car without the key fob. Hedden and Neace then fled on foot and escaped into the woods but were apprehended days later.

Neace was convicted of kidnapping which carries a maximum prison sentence of up to life imprisonment. On November 13, 2024, Hedden pleaded guilty to kidnapping. Both Hedden and Neace are currently in custody awaiting sentencing.

In making today’s announcement, U.S. Attorney Ferguson thanked the FBI for their investigation of the case.

Assistant U.S. Attorneys Don Gast and Alexis Solheim of the U.S. Attorney’s Office in Asheville are prosecuting the case.

CHARLOTTE, N.C – In April, the Justice Department’s Office for Victims of Crime (OVC) leads communities across the country in observing National Crime Victims’ Rights Week (NCVRW). This year’s observance takes place April 6-12, 2025.

NCVRW began in 1981 to honor crime victims, promote victims’ rights, and recognize those who work with and advocate on behalf of victims of crime. It also serves to promote policies and programs that help victims of crime. This year’s NCVRW theme, “Connecting < KINSHIP > Healing,” recognizes that shared humanity should be at the center of supporting all survivors and victims of crime.

To commemorate NCVRW, the U.S. Attorneys’ Offices for the Western, Middle, and Eastern Districts of North Carolina hosted a ceremony in Raleigh, to promote community engagement, raise awareness, and support and honor crime victims. The ceremony featured music by “The 100 Men in Black Ensemble” and remarks by victim advocates and survivors. The program also included a remembrance ceremony for crime victims and an award ceremony to recognize individuals for their superior service and work with victims and survivors. 

Acting U.S. Attorney Randall Galyon (MDNC), U.S. Attorney Russ Ferguson (WDNC), and Acting U.S. Attorney Daniel P. Bubar (EDNC) attended today’s NCVRW Ceremony in Raleigh 

“We wish there were no victims of crime, and eliminating crime is our goal and motivation.  During National Crime Victims’ Rights Week, we reaffirm our commitment to that goal, and to crime victims, survivors, and their families,” said Russ Ferguson, U.S. Attorney for the Western District of North Carolina. “My Office will continue to work closely with our community partners, advocates, and law enforcement to uphold victims’ rights, and to ensure that victims’ voices are heard not just this week, but every day of the year.”

“Each year during National Crime Victims’ Week, we recognize people whose physical, financial, and emotional well-being has been shattered by crime, and those who work to support them. By reflecting upon and honoring victims, victim advocates, and law enforcement professionals, we renew our commitment to seeking justice and giving hope to victims and their families,” said Randall Galyon, Acting United States Attorney for the Middle District of North Carolina. “Throughout the coming year, we will continue to bring our very best efforts to this work, protecting the fundamental human rights to ‘life, liberty, and the pursuit of happiness.’”

“Today we honor the victims of crimes and celebrate those who work to restore hope in the face of loss and tragedy,” said Daniel P. Bubar, Acting U.S. Attorney for the Eastern District of North Carolina. “We greatly appreciate the sacrifices that our law enforcement partners and victim advocates make to serve, creating the community necessary to build the healing victims deserve.”

For additional information about this year’s National Crime Victims’ Rights Week and how to assist crime victims in your community, please visit OVC’s website at www.ovc.gov.

Additional information about the U.S. Attorney’s Office Victim/Witness Assistance Program can be found here. 

ASHEVILLE, N.C. – Ernest D. Pheasant, Sr., 47, an enrolled member of the Eastern Band of Cherokee Indians (EBCI), was sentenced to life in prison today for the 2013 murder of Marie Walkingstick Pheasant, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

“For over a decade, Marie’s family has endured the pain of losing their loved one without justice. Today, that changed,” said U.S. Attorney Ferguson. “Ernest Pheasant will pay for his heinous crime by spending the rest of his life behind bars. While nothing can undo the family’s loss, I hope this sentence brings them a measure of justice. My Office remains committed to pursuing cases involving missing or murdered indigenous persons no matter how much time has passed.”

“While nothing can undo the pain caused by this tragic crime, we hope that this sentence helps to provide closure to the family and friends of Marie Walkingstick Pheasant,” said Marcelino Toersbijns, Chief of the Bureau of Indian Affairs Missing and Murdered Unit (MMU). “This case is emblematic of the Missing and Murdered Indigenous Persons Crisis impacting tribal communities across the country and highlights the importance of the MMU’s mission of analyzing and solving missing, murdered and human trafficking cases involving American Indians and Alaska Natives.”

According to filed documents and information presented in court, on December 29, 2013, the body of Marie Walkingstick Pheasant was discovered inside a burned-out vehicle parked near Big Cove Road within the Qualla Boundary in the Western District of North Carolina. Investigators determined that the vehicle had been intentionally set on fire. An autopsy revealed that Marie died from stab wounds to the neck and abdomen. DNA retrieved from a baseball cap found near the vehicle was linked to the defendant, who was Marie’s estranged husband.

On April 7, 2022, following a review of unsolved homicides in the region, the Bureau of Indian Affairs’ Missing and Murdered Unit opened a full interagency investigation into the case. During the investigation, law enforcement determined that Pheasant killed Marie at their home, then transferred her body to the car, drove it to Big Cove Road, and set it on fire. On August 16, 2024, Pheasant pleaded guilty to first degree murder for killing Marie willfully, deliberately, maliciously, and with premeditation.

The MMU began as the Cold Case task force, part of Operation Lady Justice, a multi-agency effort established by President Trump’s administration in 2019 to enhance the operation of the criminal justice system and address the staggering number of missing and murdered American Indian and Alaska Natives in tribal communities.

Today’s sentence is the result of the joint investigation conducted by the MMU, the FBI in North Carolina, the North Carolina State Bureau of Investigation, the North Carolina State Highway Patrol, the Cherokee Indian Police Department, and the EBCI Office of the Tribal Prosecutor.

Assistant U.S. Attorney Alex M. Scott of the U.S. Attorney’s Office in Asheville prosecuted the case.

Operation Not Forgotten

On Tuesday, the Justice Department announced a surge in FBI resources across the country to address unresolved violent crimes in Indian Country, including crimes relating to missing and murdered indigenous persons. As part of Operation Not Forgotten, 60 FBI personnel will be sent to Field Offices to support investigations of Indian Country violent crimes. The FBI will be assisted by the Bureau of Indian Affairs Missing and Murdered Unit and will use the latest forensic evidence processing tools to solve cases and hold perpetrators accountable. U.S. Attorney’s Offices will aggressively prosecute case referrals.

“Crime rates in American Indian and Alaska Native communities are unacceptably high. By surging FBI resources and collaborating closely with US Attorneys and Tribal law enforcement to prosecute cases, the Department of Justice will help deliver the accountability that these communities deserve,” said Attorney General Pam Bondi.

“The FBI will manhunt violent criminals on all lands – and Operation Not Forgotten ensures a surge in resources to locate violent offenders on tribal lands and find those who have gone missing,” said FBI Director Kash Patel.

“Violent crime continues to disproportionately impact communities in Indian Country,” said U.S. Attorney Ferguson. “Dedicating additional resources to reduce violent criminal activity in Tribal communities and solve cases of missing or murdered indigenous persons sends a clear message: No victim will be forgotten, and no crime will go unpunished.”

Scott Davis, Senior Advisor to the Secretary of Interior, exercising the delegated authority of the Assistant Secretary for Indian Affairs, said, “We appreciate the partnership of the Department of Justice and the FBI in addressing these crimes. This announcement reinforces our commitment to Indian Country and our dedication to collaborating with federal, state, and tribal agencies to ensure justice for American Indian and Alaska Native victims while holding offenders accountable.”

Indian Country faces persistent levels of crime and victimization.  At the beginning of Fiscal Year 2025, FBI’s Indian Country program had approximately 4,300 open investigations, including over 900 death investigations, 1,000 child abuse investigations, and more than 500 domestic violence and adult sexual abuse investigations.

Operation Not Forgotten renews efforts begun during President Trump’s first term under E.O. 13898, Establishing the Task Force on Missing and Murdered American Indians and Alaska Natives.  This is the third deployment under Operation Not Forgotten, which has provided investigative support to over 500 cases in the past two years. Combined, these operations resulted in the recovery of 10 child victims, 52 arrests, and 25 indictments or judicial complaints.

Operation Not Forgotten also expands upon the resources deployed in recent years to address cases of missing and murdered indigenous people.  The effort will be supported by the Department’s MMIP Regional Outreach Program, which places attorneys and coordinators in U.S. Attorneys’ Offices across the United States to help prevent and respond to cases of missing or murdered indigenous people.

ASHEVILLE, N.C. – A federal grand jury in Asheville has returned multiple indictments, charging several individuals with criminal charges that include unlawful firearm possession, straw purchasing of firearms, and trafficking fentanyl and methamphetamine, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

“Protecting our communities from drugs and guns is one of the Justice Department’s core missions,” said U.S. Attorney Ferguson. “Through Operation Take Back America we are stepping up our efforts to remove illegal firearms from our communities, eliminate drugs in our neighborhoods, and make sure our streets are safer for everyone.”

Bryan Austin Herron, 23, of Marshall, N.C., was indicted for the unlawful possession of a firearm. The indictment alleges that, on August 5, 2024, Herron unlawfully possessed a RugerEC9S 9mm handgun knowing he had prior felony convictions, including attempt to traffic methamphetamine.

John Quentin London, 39, of Hendersonville, N.C., is charged with possession with intent to distribute methamphetamine and unlawful possession of two firearms: a Smith and Wesson, model 649, .38 caliber revolver, and a Smith and Wesson, model SD9, 9mm pistol.

Jason Mills, 46, of Hendersonville, is charged with multiple counts of distribution of fentanyl and methamphetamine. The indictment alleges that Mills trafficked fentanyl and methamphetamine in Henderson and Buncombe Counties between January and February 2024.

Christopher O’Brien Moore, 30, of Shelby, North Carolina, is charged with unlawful possession of a firearm and ammunition. The indictment alleges that, on June 6, 2024, Moore, knowing that he had previously been convicted of a federal racketeering conspiracy and multiple state felonies, unlawfully possessed a Glock, model 22, .40 caliber pistol and ammunition.

Dontavis Raheem Pressley, 36, of Shelby, N.C., is charged with the unlawful possession of a firearm. The indictment alleges that, on August 13, 2024, Pressley possessed a Glock model 43, 9mm caliber pistol, knowing he was a convicted felon and was prohibited from possessing a firearm.

Tia Marche Ray, 33, of Asheville, is charged with five counts of straw purchasing firearms. The indictment alleges that between July 12, 2020, and August 3, 2022, Ray acquired six firearms from multiple dealers in Buncombe County, by making false statements in connection with the acquisition of the firearms, falsely representing that she was the actual buyer of the firearms.

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

In making today’s announcement, U.S. Attorney Ferguson thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; the Buncombe County Sheriff’s Office; the Burke County Sheriff’s Office; the Cleveland County Sheriff’s Office; the Henderson County Sheriff’s Office; and the Asheville Police Department for their respective investigations that led to the charges.

The cases are being prosecuted by the U.S. Attorney’s Office in Asheville.

The indictments are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and Project Safe Neighborhoods (PSN).

ASHEVILLE, N.C. – Dequan Tyrie Paton, 33, of Asheville, was sentenced to 262 months in prison followed by five years of supervised release today for methamphetamine trafficking, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Jae W. Chung, Acting Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Michael Lamb of the Asheville Police Department, join U.S. Attorney Ferguson in making today’s announcement.

According to filed court documents and today’s sentencing hearing, between September and November 2023, Payton distributed approximately 156 grams of methamphetamine and 3.5 grams of fentanyl in the Asheville area. During the investigation, Payton sold over 50 grams of methamphetamine at least three times to a confidential informant working with the ATF and almost 4 grams of fentanyl to that same informant. On April 9, 2024, Asheville Police Department located and attempted to arrest Payton on federal charges. Payton took off running. While running from the officers, Payton tossed a bag from his pocket containing approximately 11 grams of cocaine.

On August 19, 2024, Payton pleaded guilty to one count of distribution of methamphetamine. Court records indicate Payton has multiple state convictions in North Carolina for drug distribution. Because of these prior criminal convictions, Payton qualified for an increased sentence as a career offender.

In making today’s announcement, U.S. Attorney Ferguson commended the ATF, the DEA, and the Asheville Police Department for their investigation of the case.

Special Assistant U.S. Attorney Annabelle M. Chambers with the U.S. Attorney’s Office in Asheville prosecuted the case. Ms. Chambers is a state prosecutor with the office of the 43rd Prosecutorial District and was assigned by District Attorney Ashley Welch to serve as SAUSA with the U.S. Attorney’s Office in Asheville.  Ms. Chambers is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 43rd Prosecutorial District and the United States Attorney’s Office. The SAUSA position helps ensure the effective and vigorous prosecution of federal court cases that impact the counties within the 43rd Prosecutorial District.

CHARLOTTE, N.C. – Olumide Olorunfunmi, 39, a Nigerian national, appeared in federal court in Charlotte today and pleaded guilty to money laundering conspiracy for laundering millions in criminal proceeds linked to romance scams and business email compromise schemes, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.  According to documents filed with the court and today’s plea hearing, the scheme caused more than 125 victims to transfer over $4.5 million of proceeds stemming from illegal activities.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, joins U.S. Attorney Ferguson in making today’s announcement.

Two of Olorunfunmi’s co-conspirators, both Nigerian nationals, have also pleaded guilty to federal charges and are awaiting sentencing. Specifically, Samson Amos, 53, pleaded guilty to conspiracy to operate an unlicensed money transmitting business. Emmanuel Unuigbe, 42, pleaded guilty to money laundering conspiracy and conspiracy to operate an unlicensed money transmitting business.

As Olorunfunmi admitted in court today, from 2020 through 2023, Olorunfunmi conspired with Amos, Unuigbe, and others to launder the criminal proceeds of various illegal activities, including romance scams that typically targeted elderly victims, and business email compromise schemes (BECs). Court records show that the victims of the schemes were directed to transfer funds into domestic and international bank accounts controlled by Olorunfunmi and his co-conspirators. Upon receiving the fraud proceeds, Olorunfunmi and his co-conspirators transferred the funds to other bank accounts, in the U.S. and overseas.

Olorunfunmi, Amos and Unuigbe profited by keeping a portion of the criminal proceeds obtained through the schemes. They also profited by agreeing to “pay” for the domestic deposits received by others by transferring Nigerian Naira from accounts the co-conspirators controlled in Nigeria to other accounts in Nigeria, based upon a “black market” exchange rate for United States Dollars to Naira.

The charge of money laundering conspiracy carries a maximum sentence of 20 years in prison. A sentencing date has not been set.

In making today’s announcement, U.S. Attorney Ferguson thanked the FBI for the investigation of the case.

Assistant U.S. Attorney Daniel Ryan with the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.

Business Email Compromise Schemes

BEC schemes, also referred to as “cyber-enabled financial fraud,” are sophisticated scams that often target individuals, employees, or businesses involved in financial transactions or that regularly perform wire transfer payments. Fraudsters are usually part of larger criminal networks

operating in the United States and abroad. There are many variations of BEC schemes. Generally, the schemes involve perpetrators gaining unauthorized access to legitimate email accounts or creating email accounts that closely resemble those of individuals or employees associated with the targeted businesses or involved in business transactions with the victim businesses. The scammers then use the compromised or fake email accounts to send false wiring instructions to the targeted businesses or individuals, to dupe the victims into sending money to bank accounts controlled by perpetrators of the scheme. Generally, the money is quickly transferred to other accounts in the United States or overseas. More information on BEC schemes can be found here.

Romance Scams

In romance scams, fraudsters use a fake online identity to gain a victim’s affection and trust. The fraudsters then use the illusion of a romantic or close relationship to manipulate and/or steal from the victim. The fraudsters want to establish a relationship as quickly as possible, endear themselves to the victim, and gain trust. Fraudsters may propose marriage and make plans to meet in person, but that will never happen. Eventually, they will ask for money. The fraudsters who carry out romance scams are experts at what they do and will seem genuine, caring, and believable, and are present on most dating and social media sites. They also claim to be in the building or construction industry and/or are engaged in projects outside the U.S. That makes it easier to avoid meeting in person and more plausible when they ask for money for a medical emergency or unexpected legal fees. More information on romance scams can be found here.

If you have been the victim of an online scam or know someone who has been victimized, it is important to report it to law enforcement. Please visit ic3.gov, the FBI’s Internet Crime Complaint Center (IC3), to file a complaint. 

CHARLOTTE, N.C. – Kristin Turney, 54, of Catawba, South Carolina, was sentenced today to 51 months in prison followed by one year of supervised release for embezzling more than $1.7 million from her employer, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Turney was also ordered to pay restitution in the amount of $1,754,204.13.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, joins U.S. Attorney Ferguson in making today’s announcement.

“Turney was a trusted employee that pilfered money from an unsuspecting employer,” said U.S. Attorney Ferguson. “Her conduct was not a lapse in judgement; it was a prolonged and deliberate pattern of deceptive behavior that nearly destroyed a small business. Today’s sentence is a reminder that embezzlement is not a shortcut to riches, but a path to federal prison.”

According to court documents, from 2016 to 2023, Turney executed a scheme to defraud her employer, a small, family-owned business, by embezzling more than $1.7 million. Turney was in charge of the company’s financial matters, including bank accounts, payroll, accounts payables and receivables, and tax filings. During the scheme, Turney misused her access and control over the company’s bank accounts and books and records to write herself company checks, which she then deposited into bank accounts she controlled. Turney made over 1,000 unauthorized bank deposits to herself totaling over $1.7 million. Court documents show that Turney covered up the fraud by making false accounting entries in the company’s books and records. She also provided fraudulent information to the company’s tax return preparer and lied to the company’s owner and employees. As a result of Turney’s embezzlement scheme, the company continues to be impacted by the defendant’s theft.

On November 8, 2024, Turney pleaded guilty to wire fraud. She will be ordered to report the Federal Bureau of Prisons upon designation of a federal facility.

The case was investigated by the FBI.

Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte prosecuted the case. 

ASHEVILLE, N.C. – Leopold Rob Finley, 45, of Candler, N.C. was sentenced today to 48 months in prison followed by three years of supervised release for possessing ammunition loaded in a “ghost gun,” announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. At the time, Finley was on supervised release for a federal drug conviction.

Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Michael Lamb of the Asheville Police Department (APD), join U.S. Attorney Ferguson in making the announcement.

According to filed documents and court proceedings, on December 20, 2022, Finley’s vehicle was stopped by APD officers for a traffic violation. During a search of the vehicle, a “ghost gun” was recovered from Finley’s car. A “ghost gun” is an untraceable firearm with no serial number that is assembled by components purchased separately or as part of a kit. The ghost gun was loaded with 15 rounds of 9mm ammunition. When Finley was arrested, he was on federal supervised release for a prior drug conviction, specifically distribution of heroin and possession with intent to distribute fentanyl, heroin, and marijuana.

Finley is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney Ferguson thanked the ATF and the Asheville Police Department for their investigation of the case.

The U.S. Attorney’s Office in Asheville prosecuted the case. 

CHARLOTTE, N.C. – Jermond Santa Lowery, Jr., 29, of Charlotte, was sentenced in federal court today to seven years in prison for brandishing an AR-15 rifle during the robbery of a Waffle House, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney Ferguson in making the announcement.

According to information in filed documents and court proceedings, on October 31, 2023, Lowery entered a Waffle House in Charlotte, where he brandished an AR-15 rifle. As the employees began to flee through the back door, Lowery shouted at the employees to get back and open the cash register, threatening to kill them. Court documents show that Lowery removed the cash register from the restaurant and fled the scene. CMPD officers arrested Lowery the next day.

On September 26, 2024, Lowery pleaded guilty to brandishing a firearm in furtherance of a crime of violence. He remains in federal custody pending placement by the Federal Bureau of Prisons.

The investigation was handled by the FBI and CMPD.

The U.S. Attorney’s Office in Charlotte prosecuted the case.