Eastern District of North Carolina

RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced today in federal court, Chief United States District Judge James C. Dever, III, sentenced APRIL LYNN LOCKLEAR, 36, of Rowland, North Carolina, to 24 months’ imprisonment, followed by 3 years of supervised release.  LOCKLEAR was also ordered to pay $500,000 in restitution, jointly and severally, with CHONA KAY OXENDINE, 32, of Shannon, North Carolina.  OXENDINE was sentenced to 30 months’ imprisonment, followed by 3 years of supervised release.

On March 24, 2015, LOCKLEAR and OXENDINE were indicted by a federal grand jury on 16 counts related to crimes committed while they were employed by the Lumbee Guaranty Bank headquartered in Pembroke, North Carolina.  As a result of a robbery of the branch in Red Springs, North Carolina, on April 9, 2010, an internal audit was conducted and revealed that $500,000 was missing, in addition to the money stolen during the bank robbery.

On November 23, 2015, LOCKLEAR and OXENDINE pled guilty to conspiring to make false entries in bank records.

The investigation of this case was conducted by the Federal Bureau of Investigations.  Assistant United States Attorney Felice McConnell Corpening represented the government.

RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court, JOHN MICHAEL WADE, 63, pled guilty to Conspiracy to commit wire fraud.  As part of his plea, WADE agreed to pay $219,304 in restitution.  He faces a maximum of five years imprisonment.

The Criminal Information WADE pled guilty to charged that he and a co-conspirator contracted with a company in China to supply tools to their company headquartered in Cary, NC.  WADE, his coconspirator, and the Chinese company reached an agreement to inflate the invoices to WADE’S company.  After WADE’S company paid the inflated invoices to the Chinese company, the Chinese company paid the inflated amounts to WADE’S coconspirator, who in turn split the proceeds with WADE.  Wade incorporated a business to receive his share of the proceeds. 

The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation.  Assistant United States Attorney David Bragdon handling the case on behalf of the government.

RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today, Chief United States District Judge James C. Dever, III, sentenced GERALD WHITAKER, 41, of Scotland Neck, North Carolina, to 120 months in prison and 3 years of supervised released for distribution of heroin.  WHITAKER previously pled guilty to these charges on November 23, 2015.    

Between June 21, 2013, and July 22, 2013, the Halifax County Sheriff’s Office and the North Carolina Alcohol Law Enforcement used an informant to buy 182 doses of heroin from WHITAKER on four occasions in Scotland Neck, N.C. 

WHITAKER received an enhanced punishment as a career offender based on his four prior state convictions for selling cocaine. 

The investigation of this case was conducted by the Halifax County Sheriff’s Office and the North Carolina Alcohol Law Enforcement. The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry.  Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office.  Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.  Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.

WASHINGTON – A Wendell, North Carolina man was sentenced to 20 months in prison today following his plea of guilty to commit theft of government funds, Acting Assistant Attorney General Caroline D. Ciraolo of the Department of the Justice’s Tax Division and Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina announced. 

According to court documents, Jose Alfonso Rodriguez Collado, 54, operated two grocery stores in Middlesex and Siler City, North Carolina.  In 2012, co-conspirators brought Rodriguez fraudulently obtained U.S. Treasury checks, which Rodriguez cashed without receiving identification for the individuals listed on the checks, or any other source of authority for the co-conspirators to cash the checks.  Rodriguez initially was not a licensed check casher, but one co-conspirator gave him $50,000 to qualify for a check-cashing license.  In exchange for cashing the fraudulently obtained U.S. Treasury checks, Rodriguez was paid a fee for cashing the checks in excess of that allowed for under North Carolina law.  In addition, Rodriguez cashed checks in excess of $10,000 and failed to file Currency Transaction Reports as required by law.  The conspiracy caused a loss to the government of $2,502,348.

In addition to the prison term, U.S. District Court Judge Louise W. Flanagan of the Eastern District of North Carolina ordered Rodriguez to serve three years of supervised release following his prison term, and pay restitution to the IRS in the amount of $2,502,348.

Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Bruce commended special agents of Internal Revenue Service Criminal Investigation who investigated the case and Trial Attorneys Lauren Castaldi and Nathan Brooks of the Tax Division, who prosecuted the case. 

More information about the Tax Division and its enforcement efforts can be found on the division’s website.

A Union, New Jersey, man was sentenced today to 30 months in prison following his guilty plea to one count of causing the transmission of computer code and, as a result, damaging computers and causing at least $5,000 in losses.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina and Special Agent in Charge John A. Strong of the FBI in North Carolina. 

Nikhil Nilesh Shah, 33, was sentenced by U.S. District Judge Louise W. Flanagan of the Eastern District of North Carolina, who also ordered Shah to pay $324,462 in restitution. 

According to the plea agreement, from 2007 to 2012, Shah was an information technology manager at Smart Online Inc., a company located in Durham, North Carolina, that developed platforms for the creation of mobile applications.  Shah admitted that in March 2012, he left Smart Online to work for another technology company, and on June 28, 2012, he sent malicious computer code to Smart Online’s computer servers in Durham and Raleigh, North Carolina, deleting much of Smart Online’s intellectual property. 

The FBI’s Raleigh Office investigated the case.  Senior Trial Attorney Richard D. Green of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Hulbig of the Eastern District of North Carolina prosecuted the case.  

WASHINGTON – A Union, New Jersey, man was sentenced today to 30 months in prison for one count of causing the transmission of computer code and, as a result, damaging computers and causing at least $5,000 in losses.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina and Special Agent in Charge John A. Strong of the FBI in North Carolina. 

Nikhil Nilesh Shah, 33, was sentenced by U.S. District Judge Louise W. Flanagan of the Eastern District of North Carolina, who also ordered Shah to pay $324,462 in restitution. 

According to the plea agreement, from 2007 to 2012, Shah was an information technology manager at Smart Online Inc., a company located in Durham, North Carolina, that developed platforms for the creation of mobile applications.  Shah admitted that in March 2012, he left Smart Online to work for another technology company, and on June 28, 2012, he sent malicious computer code to Smart Online’s computer servers in Durham and Raleigh, North Carolina, deleting much of Smart Online’s intellectual property. 

The FBI’s Raleigh Office investigated the case.  Senior Trial Attorney Richard D. Green of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Adam Hulbig of the Eastern District of North Carolina are prosecting the case. 

WASHINGTON – A Smithfield, North Carolina man pleaded guilty today to one count of a dual object conspiracy to defraud the United States and commit theft of public money, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina. 

According to court documents, Oscar Barahona Fiallos, 52, owned and operated a tax preparation business in Smithfield.  In 2011 and 2012, Fiallos cashed large numbers of U.S. Treasury checks issued as a result of fraudulent tax returns filed with the Internal Revenue Service (IRS) in the names of third parties.  The checks were provided to Fiallos by co-conspirators and Fiallos never met the third-party payees, who purportedly lived in New York, New Jersey and North Carolina.  Fiallos deposited the checks into his bank account and then provided co-conspirators with cash equal to the value of the check, less a check cashing fee.  After a bank account was closed, Fiallos obtained a check cashing license so that he could continue cashing checks for his co-conspirators.  He also prepared Individual Taxpayer Identification Number applications and false tax returns for third parties he did not meet and who did not sign the documents.

Fiallos faces a statutory maximum sentence of five years in prison.  In his plea agreement, he has agreed to pay restitution to the United States in the amount of $2,802,496.  The sentencing hearing is set for June. 

Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Bruce commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Lauren M. Castaldi and Nathan P. Brooks of the Tax Division, who are prosecuting this case.   

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

WASHINGTON – A Raleigh, North Carolina, man pleaded guilty today to one count of conspiracy to commit theft of public money and one count of theft of public money, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and Acting U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina announced. 

According to court documents, in 2011 and 2012 Wilfredo Acosta Hidalgo, 47, conspired with check cashers to cash U.S. Treasury refund checks issued as a result of fraudulently-filed income tax returns.  Hidalgo provided the check cashers with U.S. Treasury checks issued to third-parties in whose name the fraudulent returns were filed.  The check cashers deposited the U.S. Treasury checks into their business bank accounts and provided Hidalgo with cash equal to the value of the U.S. Treasury checks, less a check-cashing fee.  The third-party payees were not present when the Treasury checks were cashed. 

Hidalgo faces a statutory maximum sentence of five years in prison for the conspiracy charge and 10 years in prison for the charge of theft of public funds.  In his plea agreement, he has agreed to pay restitution to the United States in the amount of $4,280,871.  Hidalgo’s sentencing has not been scheduled.

Acting Assistant Attorney General Ciraolo and Acting U.S. Attorney Bruce commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Lauren Castaldi and Nathan Brooks of the Tax Division, who are prosecuting the case. 

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that a federal grand jury in Greenville returned an Indictment charging, PERFECTO RUANO, 56, and WALDA LUNA, 45, both of Wallace, North Carolina, of conspiracy to commit mail fraud by filing fraudulent income tax returns with the United States Department of Treasury.  LUNA was also charged with three counts of filing false personal income tax returns, two counts of mail fraud and two counts of aggravated identity theft.  According to the Indictment, LUNA falsely claimed two individuals as her dependents and failed to report all of her business income.

Thomas J. Holloman, IRS Special Agent in Charge of the Charlotte field office, said "tax refund fraud is a serious crime, and while the conduct detailed in the Indictment is an allegation, it outlines a complex, criminal ‎scheme to defraud the Internal Revenue Service and the hard working American taxpayers.

“Tax fraud is an outrage to hard-working Americans everywhere who fulfill their obligation to society by paying their fair share,” said Special Agent in Charge of Homeland Security Investigations Atlanta Field Office Nick S. Annan. “Criminals who attempt to cheat the system and steal from law-abiding citizens will continue to be a major priority for HSI.”

According to the criminal complaint filed on January 5, 2016, RUANO and LUNA used post office boxes and physical addresses controlled by them to obtain more than one million dollars in fraudulent refunds from the Internal Revenue Service (IRS) through a program designed for individuals earning income in the United States, who are not eligible to obtain social security numbers but can obtain an Individual Tax Identification Number (ITIN).  An ITIN can be obtained from the IRS by presenting original or certified copies of foreign identification documents to include passports, birth certificates and school records.  The ITIN applicant must also establish a tax purpose, which is usually satisfied by filing an income tax return reflecting income earned in the United States by that individual.  Dependents claimed on those returns, which are not eligible for a SSN, may also obtain an ITIN. 

LUNA, who owned and operated a retail store in Wallace, had been licensed by the North Carolina Commission of Banks to cash checks.  According the the criminal complaint, between January 2009 and May 2012, 2,760 U.S. Treasury refund checks with a total face value of $12,104,825.90 were deposited into a bank account controlled by the defendants.  During this same time frame, LUNA withdrew $11,888,300 in cash by writing checks to cash. 

On or about May 2014, the couple was stopped by the Arkansas State Police as they were driving west on Interstate 40.  The police found $1,789.520 in cash in the vehicle.  Most of the cash had been wrapped into nine large bundles and hidden in two safes and a cardboard box.  The following day, the Duplin County Sheriff’s Office observed, in the couple’s Wallace residence, three empty cardboard boxes partially wrapped in packing tape consistent in shape and size to the bundles of currency seized from the vehicle in Arkansas.  The Duplin County deputies also seized documents from their residence consistent with use for tax preparation services, foreign identification documents issued by the Republic of Honduras and Guatemala to individuals other than RUANO and LUNA, and over 300 ITIN letters issued by the IRS to individuals other than RUANO and LUNA.  A laptop computer was seized from LUNA’S retail store, which contained tax files for fraudulent ITIN returns filed with the IRS.  Refund checks were issued for 75 of these fraudulent ITIN returns and were deposited into the couple’s bank account. 

The maximum penalty the couple can receive for the conspiracy charge is 20 years’ imprisonment.  LUNA faces additional penalties for the other charges, including two mandatory minimum sentences of two years for each of the aggravated identity theft charges.  The Indictment also seeks forfeiture of the monies seized in Arkansas, several tracts of land owned by the defendants in Duplin County and a money judgment of at least $2,944,799.  United States Magistrate Judge Robert Jones previously ordered the couple detained pending trial.

The Internal Revenue Service – Criminal Investigations has led the investigation of this case with the assistance of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the United States Postal Inspection Service, and the Duplin County Sheriff’s Office.

GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced TONY OBRIEN WILLIAMS, 29, of Cary, was sentenced by Senior United States District Judge Malcolm J. Howard to 84 months imprisonment followed by 10 years of supervised release.

On November 9, 2015, WILLIAMS pleaded guilty to Interstate Transportation for Prostitution and Use of the Internet to Promote Prostitution.  According to the investigation, in January 2013, following the receipt of information that individuals in the Cary, North Carolina, area

were utilizing ads in the escort section on www.backpage.com (Backpage) to promote prostitution, the Cary Police Department (CPD) began conducting undercover operations in an effort to identify the individuals responsible. The investigation determined that from at least February 2012 to January 2015, WILLIAMS ran a prostitution operation from various hotels in North Carolina, Virginia, and Georgia.  During this time frame, WILLIAMS recruited and employed several women whose prostitution services were advertised on Backpage.  WILLIAMS used verbal threats, violence, and narcotics to maintain control over the women working for him and to force them to continue in prostitution.  To limit their contact with family and friends and other external influences, WILLIAMS took away their identification cards and cell phones.  

Investigation of this case was conducted by the Cary Police Department, and U.S. Immigrations and Customs Enforcement Homeland Security Investigations.  Assistant United States Attorneys Barbara Kocher and Erin Blondel prosecuted the case of the government.

GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court yesterday Senior United States District Judge Malcolm J. Howard, sentenced CLAUDE KING, 42, of Wilson, North Carolina, to 171 months’ imprisonment followed by 5 years’ supervised release.

September 14, 2015, KING pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute a Quantity of Heroin and Cocaine Base (Crack) and Possession of a Firearm in Furtherance of a Drug Trafficking Offense.

The investigation of KING began in 2013 for heroin and crack distribution.  In September 2013, KING was arrested as he returned from New York with 50 grams of heroin.  A search warrant was executed and a firearm was found at his home.

KING is responsible for the distribution of kilogram quantities of heroin in Wilson, Pitt, Beaufort, and Dare counties.

The criminal investigation of this case was conducted by the Drug Enforcement Administration, Wilson Police Department, Greenville Police Department, Beaufort County Sheriff’s Office, and Dare County Sheriff’s Office.  Assistant United States Attorney Jennifer Wells handled the prosecution on behalf of the Eastern District of North Carolina.

GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court yesterday, Senior United States District Judge Malcolm J. Howard, sentenced JAMAAL EUGENE EVANS, 23, of Fayetteville, North Carolina, to 216 months imprisonment followed by 5 years of supervised release. 

On November 19, 2015, EVANS pled guilty to robbery of a business engaged in interstate commerce, carjacking resulting in serious bodily injury, and discharging a firearm during and in relation to a crime of violence.

On July 31, 2013, EVANS telephoned a friend and asked for a ride.  EVANS instructed the driver to proceed to a vacant church parking lot, which was a different location from where EVANS initially requested to go. EVANS displayed a firearm and told the victim to exit the vehicle.  The victim complied with the defendant’s instructions.  EVANS then shot the victim in each leg and fled the scene in the victim’s vehicle.  The victim, who suffered a fracture to his left femur, crawled to a road to flag down assistance.  He was later transported to the hospital for emergency medical treatment.

According to the investigation, on January 14, 2014, EVANS robbed the RJ Tobacco Store in Fayetteville, North Carolina at gun point. He took $475.00 in currency and merchandise.

During the robbery, EVANS did not wear gloves or a mask, and was caught on video.  Officers from the Fayetteville Police Department responded to the scene and collected a water bottle that EVANS had brought to the counter. Subsequently, an expert was able to identify a latent print from the water bottle as EVANS’ print.

The criminal investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives,  the Fayetteville Police Department, and the Cumberland County Sheriif’s Office.  Assistant United States Attorneys Katherine Burnette and Carrie Randa handled the prosecution on behalf of the Eastern District of North Carolina.

WASHINGTON – Eight current and former law enforcement officers, four correctional officers and two other individuals have been convicted for their participation in trafficking narcotics and narcotics proceeds for a large-scale drug trafficking organization, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina.

In April 2013, the FBI initiated an undercover investigation regarding allegations of systemic corruption within the Northampton County, North Carolina, Sheriff’s Office (NCSO).  Undercover agents posed as members of a large-scale drug trafficking organization that was responsible for introducing kilogram quantities of narcotics to be transported up the I-95 corridor.  In connection with their guilty pleas, the defendants admitted that they understood that they were recruited to work for the drug trafficking organization because of their status as law enforcement officers or ties to law enforcement.  The investigation grew as the original targets recruited others to participate.  The defendants transported purported narcotics and narcotics proceeds for the drug trafficking organization in exchange for bribe payments, and some defendants carried firearms during this time.

The following individuals pleaded guilty in the Eastern District of North Carolina:

• Lann Tjuan Clanton, a former correctional officer with the Virginia Department of Corrections, pleaded guilty to drug conspiracy and firearm charges today;

• Ikeisha Jacobs, a former sergeant with the NCSO, pleaded guilty to drug conspiracy, firearm and bribery charges today;

• Jason Boone, a former captain with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;

• Adrienne Moody, a former correctional officer with the North Carolina Department of Public Safety, pleaded guilty to a drug conspiracy charge today;

• Cory Jackson, a former deputy sheriff of the NCSO, pleaded guilty to a drug conspiracy charge today;

• Jimmy Pair Jr., a former lieutenant with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;

• Curtis Boone, a former deputy sheriff with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;

• Alphonso Ponton, a former sergeant with the Virginia Department of Corrections, pleaded guilty to a drug conspiracy charge today;

• Thomas Jefferson Allen II, a former sergeant with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;

• Wardie Vincent Jr., a former detective sergeant with the NCSO, previously pleaded guilty to drug conspiracy and firearms charges;

• Alaina Sue-Kam-Ling, a former correctional officer with the North Carolina Department of Public Safety, previously pleaded guilty to a drug conspiracy charge;

• Kavon Phillips, a former correctional officer with the North Carolina Department of Public Safety, previously pleaded guilty to a drug conspiracy charge;

• Crystal Pierce, of Raleigh, North Carolina, previously pleaded guilty to a drug conspiracy charge; and

• Tosha Dailey, a former 911 dispatch operator for Northampton County, previously pleaded guilty to a drug conspiracy charge.

The FBI Charlotte Division’s Raleigh Resident Agency investigated the case.  Trial Attorneys Lauren Bell and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Toby W. Lathan of the Eastern District of North Carolina are prosecuting the case.

Eight current and former law enforcement officers, four correctional officers and two other individuals have been convicted for their participation in trafficking narcotics and narcotics proceeds for a large-scale drug trafficking organization, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina.

In April 2013, the FBI initiated an undercover investigation regarding allegations of systemic corruption within the Northampton County, North Carolina, Sheriff’s Office (NCSO).  Undercover agents posed as members of a large-scale drug trafficking organization that was responsible for introducing kilogram quantities of narcotics to be transported up the I-95 corridor.  In connection with their guilty pleas, the defendants admitted that they understood that they were recruited to work for the drug trafficking organization because of their status as law enforcement officers or ties to law enforcement.  The investigation grew as the original targets recruited others to participate.  The defendants transported purported narcotics and narcotics proceeds for the drug trafficking organization in exchange for bribe payments, and some defendants carried firearms during this time.

The following individuals pleaded guilty in the Eastern District of North Carolina:

• Lann Tjuan Clanton, a former correctional officer with the Virginia Department of Corrections, pleaded guilty to drug conspiracy and firearm charges today;
• Ikeisha Jacobs, a former sergeant with the NCSO, pleaded guilty to drug conspiracy, firearm and bribery charges today;
• Jason Boone, a former captain with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;
• Adrienne Moody, a former correctional officer with the North Carolina Department of Public Safety, pleaded guilty to a drug conspiracy charge today;
• Cory Jackson, a former deputy sheriff of the NCSO, pleaded guilty to a drug conspiracy charge today;
• Jimmy Pair Jr., a former lieutenant with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;
• Curtis Boone, a former deputy sheriff with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;
• Alphonso Ponton, a former sergeant with the Virginia Department of Corrections, pleaded guilty to a drug conspiracy charge today;
• Thomas Jefferson Allen II, a former sergeant with the NCSO, pleaded guilty to drug conspiracy and bribery charges today;
• Wardie Vincent Jr., a former detective sergeant with the NCSO, previously pleaded guilty to drug conspiracy and firearms charges;
• Alaina Sue-Kam-Ling, a former correctional officer with the North Carolina Department of Public Safety, previously pleaded guilty to a drug conspiracy charge;
• Kavon Phillips, a former correctional officer with the North Carolina Department of Public Safety, previously pleaded guilty to a drug conspiracy charge;
• Crystal Pierce, of Raleigh, North Carolina, previously pleaded guilty to a drug conspiracy charge; and
• Tosha Dailey, a former 911 dispatch operator for Northampton County, previously pleaded guilty to a drug conspiracy charge. 

The FBI Charlotte Division’s Raleigh Resident Agency investigated the case.  Trial Attorneys Lauren Bell and Menaka Kalaskar of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Toby W. Lathan of the Eastern District of North Carolina are prosecuting the case.

RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court yesterday Senior United States District Judge W. Earl Britt, sentenced RALPH EDWARD STROUD, 50, and LORNE HOWARD, 47, both of Pink Hill, North Carolina, to 132 months’ imprisonment followed by 5 years’ supervised release and 70 months’ imprisonment followed by 3 years of supervised release respectively.

June 1, 2015, HOWARD pled guilty to possession with intent to distribute a quantity of a mixture or substance containing a detectable amount of methamphetamine and aiding and abetting.  On June 29, 2015, STROUD pled guilty to the same charge and possession of a firearm in furtherance of a drug trafficking offense.

According to the investigation, on August 15, 2013, law enforcement executed a search warrant at STROUD'S home and property.  Law enforcement detained STROUD and his girlfriend and discovered an active methamphetamine lab.  Within the lab, officers recovered at total 5 grams of pseudoephedrine,

1,017.79 grams of liquid containing methamphetamine, .82 grams of methamphetamine, empty pseudoephedrine blister packs, homemade ammonia condensers, propane tanks, sulfuric acid, lye, pill grinders, tubing, Coleman camp fuel, fertilizer, stripped lithium batteries, and home HcL generators.  A search of the residence recovered small amounts of unmeasured methamphetamine, drug paraphernalia, five firearms, and ammunition.  Subsequent to his arrest, STROUD provided an unprotected statement acknowledging ownership of the firearms in his residence and the production of methamphetamine on his property. 

On August 19, 2013, HOWARD was arrested and provided an unprotected statement acknowledging his use of methamphetamine and that he was present with STROUD on August 15, 2013, while methamphetamine was cooked.  HOWARD admitted smoking methamphetamine with STROUD approximately 40 times and purchased it from STROUD approximately 20 to 30 times.

The criminal investigation of this case was conducted by the Lenoir County Sheriff’s Office, Duplin County Sheriff’s Office, the North Carolina State Bureau of Investigation and the Drug Enforcement Administration.  Assistant United States Attorney Jennifer Wells handled the prosecution on behalf of the Eastern District of North Carolina.

RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that the following men were indicted for conspiracy to traffic in contraband cigarettes, trafficking in contraband cigarettes, and aiding and abetting, and those indicated below in the Eastern District of North Carolina had their initial appearance in federal court today.  The others are scheduled for their initial appearance in federal court in New York later today.

MOKHTAR ABDUL KAREM KHASHAFA, 34, of Durham (EDNC)

YOUSEF ABDULLA MOHAMED KAID, 35, of Durham (EDNC)

IBRAHIM ABDULLA KAIED, 39, of Durham (EDNC)

TAHA AL MONTASER, 31, of Greenville, North Carolina (EDNC)

AHMED AL MONTASER, 30, of Staten Island, New York

MOHAMMED NASSER ALI, a/k/a “Mo”, 50, of Durham (EDNC)

JABBAR MAZAB, a/k/a “Obaydah”, 38, of Brooklyn, New York

BASSAM SAAD, a/k/a “Sam”, 31, of Syracuse, New York 

MUHAMMED LABBID AL HADDAWI, 27, of Durham (EDNC)

The Grand Jury indicted the above listed individuals on January 26, 2016.   

According to the investigation, the object of the conspiracy was to profit from the illegal sale of large quantities of cigarettes by purchasing them in North Carolina and then selling them in the State of New York and New York City without paying the much higher taxes that apply there.  During the relevant time period, the North Carolina state excise tax was $0.45 per pack of 20 cigarettes, or $4.50 per carton of ten packs.  The New York State excise tax was $4.35 per pack ($43.50 per carton), and the New York City excise tax was an additional $1.50 per pack ($15.00 per carton).  The total combined excise tax for New York State and New York City was $5.85 per pack, or $58.50 per carton.  By evading the New York State and New York City excise taxes, Defendants and their co-conspirators were able to sell the contraband cigarettes at a lower cost, and at a higher profit margin, than competing cigarette sellers in New York who complied with federal and state law.  

The Indictment alleges that some of the defendants and co-conspirators owned or operated retail stores in North Carolina, which enabled them to make wholesale purchases of large quantities of cigarettes from wholesale dealers, far exceeding the quantities of cigarettes actually being sold at the stores to retail customers in North Carolina.  Defendants and co-conspirators in New York would arrange for the purchase of contraband cigarettes from defendants and co-conspirators in North Carolina.  The contraband cigarettes would be transported by vehicle from North Carolina to various storage locations in New York.  Various defendants and co-conspirators would apply counterfeit tax stamps to the cigarette packaging to create the false appearance that applicable New York State and New York City excise taxes had been paid.

The Indictment alleges that, from on or about June 15, 2015 to on or about January 16, 2016, the defendants and co-conspirators transported and sold approximately 22,205 cartons of contraband cigarettes, resulting in a total tax loss to the State and City of New York of approximately $1,224,947.50.

The charges are punishable by up to 5 years imprisonment, a fine of up to $250,00, and a term of supervised release of up to 3 years.

The charges and allegations contained in the indictment are merely accusations.  The defendants are considered innocent unless and until proven guilty in a court of law. 

The case is being investigated by FBI Raleigh with assistance from FBI Newburgh NY, FBI New York, FBI Syracuse, North Carolina State Bureau of Investigation, North Carolina Department of Public Safety, Raleigh Police Department, Durham Police Department, Cary Police Department, Greenville Police Department, North Carolina Alcohol Law Enforcement, North Carolina Probation and Parole, North Carolina State Highway Patrol, New York Department of Taxation and Finance, Internal Revenue Service, United States Marshals Service, and the Virginia National Guard Counterdrug Taskforce.  Assistant United States Attorney Eric Goulian is representing the government in this case.

RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court today Chief United States District Judge James C. Dever, III, sentenced KEVIN ROBINSON, 31, of Wilmington, North Carolina, to 84 months’ imprisonment followed by 3 years’ supervised release. 

On July 28, 2015, a Federal Grand Jury returned a Criminal Indictment charging ROBINSON with unlawful possession of a firearm and ammunition by a convicted felon.  On October 29, 2015, ROBINSON pled guilty to the charge.

According to the investigation, on April 16, 2015, Wilmington police officers located ROBINSON and executed an arrest warrant for a probation violation.  As officers were placing ROBINSON under arrest, ROBINSON told officers he was carrying a gun in the waistband of his clothing.  Upon a search, officers found a loaded Ruger P-90 .45 caliber handgun.

The criminal investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wilmington Police Department.  Assistant United States Attorney Jane J. Jackson handled the prosecution on behalf of the Eastern District of North Carolina.

RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that in federal court on January 25, 2016, DONALD BRIAN BEAUCHAINE, 40, of Lake Waccamaw, North Carolina, pled guilty before Chief United States District Judge James C. Dever, III, to one count of manufacturing child pornography, in violation of Title 18, United States Code, Section 2251(a)and (d).  

According to the investigation, On June 4, 2014, BEAUCHAINE was previously employed as a police officer with the Fair Bluff Police Department.  He was caught secretly videotaping his girlfriend’s minor daughter in the bathroom.  He admitted to videotaping the girl beginning in April 2014 until he was caught.  A forensics examination of BEAUCHAINE’S cellphone and laptop 12,000 images of child pornography.    

At sentencing, not yet scheduled by the court, BEAUCHAINE faces up to 30 years imprisonment.

The criminal investigation of this case was conducted by the North Carolina State Bureau of Investigation and the Lake Waccamaw Police Department.  Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.

This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level.  For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.

RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, MILTON RUSS BARNHILL, 48, of Tabor City, North Carolina, was sentenced to a total of 11 years in federal prison on charges of Conspiracy to Make False Statements in Connection with Federal Crop Insurance; Making False Statements in Connection with Federal Crop Insurance; Mail Fraud, and Money Laundering.  BARNHILL was also sentenced to 3 years of supervised release and ordered to make restitution of $2,512,097 to various federal programs and to the Horry County State Bank.  The Court also ordered BARHNILL to forfeit the proceeds of his crimes.

BARNHILL previously went to trial on these charges on August 4, 2015, but pled guilty following jury selection.

Count one of the Indictment charged the defendant with conspiring with others to defraud the Federal Crop Insurance Corporation (FCIC) and the Farm Service Agency (FSA), both agencies of the United States, in connection with federal crop insurance claims and other federal taxpayer subsidies.  As charged, the defendant produced crops which he sold in the names of others.  The Defendant and others then reported on insurance claims that the crops were lost due to natural disasters.  The defendant also placed crops and insurance policies into the names of conspirators to boost the amount of money he could collect on the insurance claims.

Counts two through eight, ten, and eleven of the Indictment each charged the defendant with falsifying and aiding and abetting others to falsify federal crop insurance claims.  The defendant received more than $1 Million into his bank account that was derived from hidden crop production, underreported crop production, and overstated crop acreages, all on federal crop insurance documents. 

Count twelve of the Indictment charged the defendant with committing mail fraud that resulted in Horry County State Bank paying out approximately $450,000 in fraudulent loan proceeds.  On this count, the defendant supplied a fictitious tobacco sales contract to Horry County State Bank as collateral for a farm operating loan.  In fact, the contract was fictitious, included references to a bogus tobacco receiving station, and was signed using the name of a fictitious person.  The phone number the defendant provided to the bank as the number for the tobacco receiving station was, in fact, a prepaid cell phone that the defendant purchased in Clinton, North Carolina.  The P.O. Box for the tobacco receiving station was, in fact, a mailing address applied for by the defendant. 

Counts fifteen through nineteen charged the defendant with using the proceeds from the foregoing frauds to fund other transactions in excess of $10,000 in value.  The evidence showed that the defendant received fraudulent bank monies into his account.  The defendant then used those funds to promote the ongoing production of crops in the names of conspirators, who he also caused to file false crop insurance claims.

The criminal investigation of this case was conducted by United States Department of Agriculture–Office of the Inspector General-Investigations; United States Department of Agriculture-Risk Management Agency–Special Investigations Branch; the United States Internal Revenue Service–Criminal Investigations; and the United States Postal Inspection Service, with the assistance of the Columbus County Sheriff’s Office and the Whiteville Police Department.  Assistant United States Attorneys Banumathi Rangarajan and William M. Gilmore handled the prosecution on behalf of the Eastern District of North Carolina.

RALEIGH – United States Attorney’s Office for the Eastern District of North Carolina announced today that a federal grand jury in Raleigh, North Carolina returned a four count indictment charging DEMETRICE R. DEVINE, TIMOTHY A. DEVINE and CARLETTA P. ALSTON with conspiring to tamper with a witness, in violation of the provisions of Title 18, United States Code, Section 1512(k); witness tampering and aiding and abetting, in violation of the provisions of Title 18, United States Code, Sections 1512(b) and 2; obstruction of an official proceeding and aiding and abetting, in violation of the provisions of Title 18, United States Code, Sections 1512(c) and 2; and obstruction of justice and aiding and abetting, in violation of the provisions of Title 18, United States Code, Sections 1503(a) and 2.

The investigation revealed that beginning on July 1, 2015, Federal Bureau of Investigation agents and Raleigh Police Department officers interviewed and served federal grand jury subpoenas on individuals believed to have information on the illegal activities of a gang in Raleigh, North Carolina.  After learning the identity of a witness subpoenaed to testify before a federal grand jury, DEMETRICE R. DEVINE, TIMOTHY A. DEVINE and CARLETTA P. ALSTON discussed a plan to approach the witness and inform the witness that individuals were watching the witness’ child, as a means to influence the witness’ testimony before a federal grand jury.

If convicted, the maximum penalties for the witness tampering counts are not more than 20 years imprisonment, a $250,000 fine, and a term of supervised release of not more than 5 years, following any term of imprisonment.  The maximum penalties for the obstruction of justice count is not more than 10 years imprisonment, a $250,000 fine, and up to 3 years supervised release following any term of imprisonment. 

The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty in a court of law.  The case is being investigated by the Federal Bureau of Investigation and the Raleigh Police Department.

RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court Chief United States District Judge James C. Dever, III sentenced ALPHA OUMAR DIALLO, 24, of New York, to serve a total of 95 months in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft, and Conspiracy to Commit Access Device Fraud.  DIALLO was also ordered to make restitution to numerous victims.

According to the Indictment, DIALLO and co-conspirator Mamadou Bah were participants in a stolen credit card and cigarette trafficking scheme in 2013 and 2014.  The purpose of the scheme was to use stolen credit card account information to purchase large quantities of cigarettes in North Carolina which were resold in other states.  To carry out the scheme, participants acquired stolen credit card data from other conspirators and encoded the stolen data onto the magnetic strip of what appeared to be legitimate gift cards.  Approximately 421 stolen credit card accounts were linked to DIALLO during the investigation of the case.

DIALLO admitted his involvement in the fraud, which included multiple fraudulent purchases of cigarettes from a gas station in Halifax County between December of 2013 and January of 2014.  At the time of the fraud, DIALLO had absconded from federal supervision in Ohio relating to a prior offense of Access Device Fraud.  A search of DIALLO’s residence and vehicle yielded other counterfeit credit cards and a firearm.  After initially agreeing to plead guilty to the offense, DIALLO again absconded.  DIALLO was later apprehended in Georgia where he attempted to escape the present charges by providing a fake name and date of birth to police.

Investigation of DIALLO’s case was conducted by the United States Secret Service, with the assistance of the Halifax County Sheriff’s Office and the Raleigh Police Department.  Assistant United States Attorney William M. Gilmore represented the United States.

RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announced that on January 11, 2016 in federal court, Chief United States District Judge James C. Dever III sentenced ARLO T. WRIGHT, 40, of Sharpsburg, North Carolina, to 30 months imprisonment, followed by 3 years of supervised release.

WRIGHT was named in a Criminal Information filed on July 15, 2015, charging him with conspiracy to distribute and possess with the intent to distribute a quantity of cocaine base (crack).  WRIGHT pleaded guilty to that charge on August 17, 2015. 

According to the investigation, the Nash County Sheriff’s Department utilized a confidential informant to buy two ounces of crack cocaine from WRIGHT on December 10, 2013, at WRIGHT’s residence in Sharpsburg, North Carolina.   On December 16, 2013, the confidential informant bought another two ounces of crack cocaine from WRIGHT at WRIGHT’s residence.  During both of the controlled buys, the confidential informant was provided with audio and video equipment to record the transactions.

Investigation of this case was conducted by the Nash County Sheriff’s Office and the Drug Enforcement Administration.  Assistant United States Attorney Dena J. King represented the government. 

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News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce within 48 hours of release.

Raleigh – The United States Attorney’s Office for the Eastern District of North Carolina announces that in federal court today Chief United States District Judge James C. Dever sentenced JOHN EDWARD RYAN, JR. 60, of Beulaville to 240 months imprisonment followed by a lifetime of supervised release.

     On October 5, 2015, RYAN pled guilty to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2). 

According to public information, in July, 2014, an investigation was initiated relating to the distribution and receipt of child pornography through a peer-to-peer file sharing network.  An Internet Protocol (IP) address was identified and as the investigation continued the subscriber assigned to the IP address was captured and identified as RYAN. 

On September 3, 2014, a search warrant was executed at RYAN’S residence.  An initial onsite preview revealed the presence of child pornography on RYAN’S computer.  RYAN  who was present at the time of the search, acknowledged receiving and possessing child pornography.  Forensic examination of the defendant’s computer and media storage devices revealed approximately 2,415 images and 1,072 videos depicting child pornography.  In December 2014, family members informed investigators that RYAN previously molested his adopted daughter and step-granddaughter and these facts were considered by the court during sentencing.

The criminal investigation of this case was conducted by the North Carolina State Bureau of Investigation and the Onslow County Sheriff’s Office.  Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.

     This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level.  For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.

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News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.

RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that a federal grand jury in Raleigh returned a four count indictment (attached) charging three defendants with conspiring to distribute and possess with intent to distribute cocaine.

The following people were indicted and arrested in December 2015.  They are detained by order of a federal judge.

• Genesis Lee Whitted, Jr., aka “Gen” and “Juice Man”, 26, of Fayetteville, NC

• Wayne Desmond Whitted, aka “Weezy”, 24, of Fayetteville, NC

• Joel Michael McLaurin, Jr., aka “Knowledge,” 29, of Fayetteville, NC
   

Genesis Lee Whitted, Jr. was also charged with Possession of a Firearm in Furtherance of a Drug Trafficking Crime and Brandishing a Firearm During and In Relation To a Drug Trafficking Crime.

If convicted, the maximum penalties for the charged drug count are twenty years’ imprisonment, a $1 million fine, and a term of supervised release of not less than 3 years following any term of imprisonment. 

The maximum penalties for Possessing a Firearm in Furtherance of a Drug Trafficking Crime are no less than 5 years, up to life imprisonment, consecutive to any other sentence; a $250,000 fine; and up to 3 years supervised release following any term of imprisonment.  The maximum penalties for Brandishing a Firearm in Furtherance of a Drug Trafficking Crime are no less than seven years, up to life imprisonment, consecutive to any other sentence; a $250,000 fine; and up to 3 years supervised release following any term of imprisonment.  A second or subsequent conviction for a firearms charge of this type carries a mandatory minimum term of twenty five years imprisonment, consecutive to any other sentence. 

  The charges and allegations contained in the indictment are merely accusations.  The defendants are considered innocent unless and until proven guilty in a court of law. 

The case is being investigated by the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Fayetteville Police Department (FPD).

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News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release

GREENVILLE – The United States Attorney’s Office for the Eastern District of North Carolina announces that in federal court today, WILLIAM EDWARDSON, JR., 56, of Jacksonville, pled guilty before United States Magistrate Judge Kimberly A. Swank to receipt of child pornography, in violation of Title 18, United States Code, Section 2252 (a) (2).

On September 2, 2015, a Federal Grand Jury returned a Criminal Indictment charging EDWARDSON.  At the time, EDWARDSON was a teacher and soccer coach at Trexler Middle School in Richlands, North Carolina.

According to the investigation, law enforcement identified an IP address downloading and sharing child pornography via the peer-to-peer network, Shareaza.  As the investigation progressed, the address and user were identified as EDWARDSON.  EDWARDSON was interviewed and admitted to downloading visual depictions of minor children engaging in sexually explicit conduct. 

Investigation of this case was conducted by the NC State Bureau of Investigation.  Assistant United States Attorney Ethan Ontjes represented the government.  This case was accepted for federal prosecution as part of Project Safe Childhood.

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News releases are available on the U. S. Attorney’s webpage at www.usdoj.gov/usao/nce within 48 hours of release.

RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, Senior United States District Judge James C. Fox sentenced MARLIN MAURICE JACKSON, 36, to 36 months imprisonment, followed by 3 years of supervised release.  He also ordered payment of $ 615,536  in restitution

jackson was named in a Criminal Information filed on April 28, 2015.  He pled guilty to one count of false, fictitious, and fraudulent claims for refunds, in violation of Title 18, United States Code, Section 287.  Evidence presented at JACKSON’s plea and sentencing showed that JACKSON used the identities of others, often without their knowledge, to prepare and file fraudulent tax returns.

The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation.  Assistant United States Attorney David Bragdon is handling the case on behalf of the government.

“As filing season is upon us, the message should be clear that if you engage in fraud at the expense of other taxpayers in order to enrich yourself, as Marlin Jackson did in this case, IRS Criminal Investigation will investigate your criminal actions and ensure that you are held responsible.” said Thomas J. Holloman, Special Agent in Charge, IRS Criminal Investigation.

RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, Senior United States District Judge James C. Fox  sentenced DAVID CHRISTOPHER MAYHEW, 43, of Raleigh, NC to 320 months imprisonment, followed by 3 years of supervised release.  He also ordered payment of $2,025,300 in restitution

MAYHEW was named in a Superseding Indictment filed on July 2, 2014.  He was originally indicted on July 9, 2013.  His co-defendant, Ronald McCullough, has not yet been located and arrested on the charges. 

Special Agent in Charge Thomas J. Holloman III stated, “The IRS, Criminal Investigation is committed to using our Agent’s financial expertise to help bring those that prey on innocent taxpayers for their own enrichment to justice.”

At trial, the Government presented evidence that MAYHEW was involved in an investment fraud scheme that spanned from January 2009 to May 2012 and swindled more than $2,000,000 from investors, promising them returns as much as 100% in 30 days.  One victim testified that he had lost his family’s house as a result of the fraud.  Two other victims testified that they had to back out of contracts to purchase property because of the fraud. 

Investigation of this case was conducted by the FBI, the IRS Criminal Investigation, the Postal Inspection Service, and the North Carolina Secretary of State’s office, Securities Division.  Assistant United States Attorney David A. Bragdon represented the government.  AUSA Bragdon stated: “MAYHEW used trust in himself and trust in others to deprive victims of money, money that many of them had taken a lifetime to save.”

"When making investment decisions, Investors should always consider that if it sounds too good to be true, it probably is,” said Thomas Noyes, Inspector in Charge of the US Postal Inspection Service Charlotte Division.  "This case was especially egregious because the defendants used the victims’ religious beliefs to gain their trust and steal their money.  The US Postal Inspection Service will continue to vigorously pursue those who utilize the US Mail to steal our customers’ hard earned money."

“David Mayhew promised his victims huge investments returns, instead they lost their homes, their life savings, even property where they planned to build a church.  Now he’ll pay for his crimes behind bars.  The FBI and federal partners will keep exposing those responsible for these schemes as long as innocent people are being swindled,” said John Strong, Special Agent in Charge of the FBI in North Carolina.   

NEW BERN – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Louise W. Flanagan sentenced CHARLES ROBERT DOWD, 27, of Beaufort, North Carolina, to 41 months of imprisonment and 3 years supervised release and was ordered to pay $18,994.00 in restitution.  On September 16, 2015 DOWD entered a guilty plea to making false distress calls to the United States Coast Guard.

"The Coast Guard has a long and proud history of Search and Rescue, often at great personal risk to those who chose to devote their life to the service of others.  False distress calls incur significant cost to the public by obligating search resources and vast amounts of tax payer dollars.  More importantly, they risk the very lives of responders for cases where no actual distress exists.  Additionally, these false distress calls take search and rescue resources away from those who may be in real distress," said Captain Sean Murtagh, commander of Sector North Carolina.  “Through the vigilance of the public, our strong partnerships with the Department of Justice, the U.S. Attorney's Office, and our Coast Guard Investigative Service, this case affirms our collective commitment to holding accountable those individuals who make hoax calls."

According to information in the public record, on October 20, 2013, the United States Coast Guard received a “MayDay” call in which the caller claimed a vessel with five adults and two children was taking on water and sinking near the Core Creek Bridge in Beaufort, North Carolina.  The calls indicated that one child was stuck on the vessel and could not be seen.  Upon receipt of the distress call, small boats from Coast Guard Station Fort Macon, North Carolina; a helicopter from the Marine Corps Air Station at Cherry Point, North Carolina; a towboat from a local salvage company; and emergency responders from the sheriff’s office and two fire departments were deployed to assist in the search and rescue of the vessel.  However, response crews found no vessel or persons in distress.  Ultimately, the Coast Guard determined that the call was a hoax, but not until after $18,994.00 worth of resources were expended.

The search and rescue efforts were led by United States Coast Guard – 5th District and Coast Guard Sector North Carolina.  The criminal investigation of this case was conducted by the United States Coast Guard Investigative Service.  Assistant United States Attorney Susan B. Menzer prosecuted the case.

WILMINGTON – United States Attorney Thomas G. Walker announced that in federal court, JON JAMES THOMAS, 45, pled guilty before Senior United States District Judge James C. Fox to receipt of child pornography, in violation of Title 18, United States Code, Section 2252 (a) (2).

On October 15, 2015, a Federal Grand Jury returned a Criminal Indictment charging THOMAS.  At the time, THOMAS was a patrol deputy with the Onslow County Sheriff’s Department.

According to the investigation, law enforcement identified an IP address downloading and sharing child pornography via the peer-to-peer network, Shareaza.  As the investigation progressed, the address and user were identified as THOMAS.  THOMAS was interviewed and admitted over the past two years to downloading visual depictions of minor children engaging in sexually explicit conduct.  

Investigation of this case was conducted by the NC State Bureau of Investigation. Special Assistant United States Attorney Ethan Ontjes represented the government.  This case was accepted for federal prosecution as part of Project Safe Childhood.

RALEIGH – Thomas G. Walker, the U.S. Attorney for the Eastern District of North Carolina has submitted his resignation to President Barack Obama effective January 7, 2016.  Mr. Walker will be returning to private practice.

Mr. Walker was sworn into office on July 8, 2011, after nomination by President Barack Obama and confirmation by the United States Senate.  He took the oath of office from Chief United States District Judge James C. Dever III.  As United States Attorney, Mr. Walker oversaw all federal criminal and civil matters in the 44 eastern counties of North Carolina.

“Throughout his tenure as United States Attorney for the Eastern District of North Carolina, Thomas Walker has proved himself to be a consummate public servant and an exemplary law enforcement officer,” said Attorney General Loretta Lynch.  “In every case and every instance, Thomas has embodied the Justice Department’s highest standards of integrity and professionalism.  Thanks to his outstanding leadership, his office is well positioned for years of continued success.  And because of his tireless efforts in a range of areas – from national security to environmental protection, and from veterans’ rights to the fight against human trafficking – the communities in his district are stronger, safer, and more just.  I thank him for his dedication, and I wish him well as he begins the next chapter of his already distinguished career.”

“Words cannot express the appreciation that I have for the opportunity to serve the Eastern District of North Carolina.  I will forever be grateful to President Barack Obama, and to Senator Richard Burr and former Senator Kay Hagan for their nomination and approval,” said U.S. Attorney Thomas Walker.

WASHINGTON – A federal grand jury sitting in Raleigh, North Carolina, returned an indictment, which was unsealed today against a Raleigh man, charging him with one count of conspiracy to commit theft of public money and 22 counts of theft of public money, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Thomas G. Walker for the Eastern District of North Carolina. 

According to the indictment, in 2011 and 2012, Wilfredo Acosta Hidalgo conspired with two check cashers to cash U.S. Treasury checks issued as a result of fraudulent tax returns filed in the names of third-parties.  Hidalgo provided U.S. Treasury checks ranging in value from $4,000 to $8,000 to the check cashers.  These checks were issued to third parties in whose names the fraudulent tax returns were filed.  The third-party payees purportedly lived in Florida, North Carolina, Virginia, Maryland, Delaware, Pennsylvania and New Jersey.  The check cashers deposited the U.S. Treasury checks into their business bank accounts and then provided Hidalgo with cash equal to the value of the check minus a check cashing fee.  The third-party payees were not present when the checks were cashed. 

If convicted, Hidalgo faces a statutory maximum sentence of five years in prison for the conspiracy charge and 10 years in prison for each count of theft of public funds.  He also faces substantial monetary penalties, supervised release and restitution.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Walker commended special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorneys Nathan P. Brooks and Lauren M. Castaldi of the Tax Division, who are prosecuting this case.  Acting Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of North Carolina for its assistance.

An indictment merely alleges that crimes have been committed.  The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

GREENVILLE - A federal grand jury in Greenville, North Carolina has returned a nine-count indictment charging two engineering officers employed by Oceanfleet Shipping Limited with crimes relating to the illegal discharge of oily wastes directly into the sea, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and United States Attorney Thomas G. Walker for the Eastern District of North Carolina.  Oceanfleet Shipping Limited is a Greek shipping company that operates the cargo carrier M/V Ocean Hope.  The two engineering officers indicted are the vessel’s Chief Engineer, Rustico Yabut Ignacio, 65, of the Philippines; and the Second Engineer, Cassius Flores Samson, 51, of the Philippines.

According to the indictment, in 2015, Samson bypassed pollution prevention equipment with an unauthorized hose connection, or “magic pipe,” to discharge oil sludge generated by the M/V Ocean Hope directly into the sea.  Samson also ordered crewmembers on numerous other occasions to pump oily mixtures from the vessel’s bilges into the sea using the ship’s General Service Pump rather than processing these mixtures through the vessel’s pollution prevention equipment.

The operation of marine vessels like the M/V Ocean Hope generates large quantities of waste oil and oil-contaminated waste water.  International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials.  Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard.  To hide the illegal discharges, Ignacio and Samson allegedly maintained a fictitious oil record book that failed to record the disposal, transfer, or overboard discharge of oil from the vessel.  The oil record book also contained false entries stating that pollution prevention equipment had been used when it had not.

The indictment further alleges Ignacio and Samson ordered subordinate crewmembers to lie to the U.S. Coast Guard during an inspection in Wilmington, North Carolina.  The crewmembers were allegedly instructed to deny knowledge of the connection of a magic pipe to discharge sludge and to tell the Coast Guard that Oily Water Separator was being used as required under international law to process oily mixtures before discharge.

Both engineering officers were charged with violating the federal Act to Prevent Pollution from Ships for failing to record overboard discharges in the vessel’s oil record book, conspiracy for their agreement to violate federal law, obstruction of justice for presenting false documents intended to deceive the Coast Guard, and witness tampering for ordering subordinate crewmembers to mislead and lie to the Coast Guard.  Samson was also charged with false statements and obstruction of justice for lying to Coast Guard inspectors about the discharges.  If convicted, they face a maximum penalty of 20 years in prison for the obstruction of justice charges (this statement may need to be rephrased – given the 5 year stat max on the 1505 count, in addition to other possible penalties.  An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent unless and until proven guilty.

The case was investigated by the U.S. Coast Guard, Sector North Carolina.  Assistant United States Attorney Banumathi Rangarajan with the U.S. Attorney's Office for the Eastern District of North Carolina, and Trial Attorneys Shane N. Waller and Brendan Selby for the Environmental Crimes Section are prosecuting the case.

WILMINGTON - United States Attorney Thomas G. Walker announces that seven individuals were sentenced for their involvement in a methamphetamine distribution organization.  All 7 were part of the same drug trafficking organization operating in Johnston, Wilson, and Wayne Counties. The organization called themselves “The Hill-Top Mafia” due to the close affiliation they have with methamphetamine, guns, and violence.

The following individuals were charged in a 13-count indicted on September 16, 2014.  Count 1 charged conspiracy to manufacture, distribute, dispense, and possess with intent to distribute a mixture and substance containing a detectable amount of methamphetamine between November 2011 and September 16, 2014.  Counts 2 and 3 charged distribution and possession with intent to distribute a quantity of a mixture and substance containing a detectable amount of methamphetamine on March 18, 2013 and March 26, 2013 respectively.  Counts 4 and 7 charged possession with intent to distribute a quantity of a mixture and substance containing a detectable amount of methamphetamine and aiding and abetting on September 13, 2013 and December 9, 2013 respectively.  Counts 5, 6, and 9 charged possession of equipment, chemicals, products and material with the intent to manufacture methamphetamine and aiding and abetting on October 16, 2013 and December 9, 2013 respectively.  Counts 8 and 10 charged possession of pseudoephedrine with the intent to manufacture methamphetamine and aiding and abetting on December 9, 2013, and December 12, 2013, respectively.  Count 11 charged possession of a firearm by a felon on December 12, 2013.  Count 12 charged possession of a stolen firearm on December 12, 2013.  Count 13 charged possession of a firearm in furtherance of a drug trafficking Crime on December 12, 2013.

The count of the indictment each pleaded guilty to is annotated as well as their sentence.

• William Bryan Hill, 32, of Kenly, NC – Count 1, 121 months & a lifetime of supervised release

• Samuel Wayne Hill, 26, of Smithfield, NC – Count 1, 480 months & a lifetime of supervised release

• William Joseph Hill, 28, of Princeton, NC – Count 1, 175 months & a lifetime of supervised release

• Terry Matthew Hall, 21, of Wilson, NC – Count 1, 225 months & a lifetime of supervised release

• Michael Eugene Custer, 40, of Princeton, NC – Count 1, 123 months & a lifetime of supervised release

• Dolly Wadsworth Evans, 46, of Smithfield, NC – Count 1, 157 months & 10 years of supervised release

Samantha Leigh Ross-Varner, 24, of Goldsboro, NC was named in a two-count Criminal Information filed on May 5, 2015. Count 1 of the Criminal Information charged conspiracy to manufacture, distribute, dispense, and possess with the intent to distribute a mixture and substance containing a detectable amount of methamphetamine between November 2011, and September 16, 2014. Count 2 charged Ross-Varner with possession of a firearm by a felon on December 12, 2013.  She pled guilty to the two count Criminal Information on May 11, 2015.  On December 8, 2015 Ross-Varner was sentenced to 180 months imprisonment followed by a lifetime of supervised release.

“The NC State Bureau of Investigation values its partnerships with local and federal law enforcement in the continued fight against methamphetamine production in North Carolina, and appreciates the Eastern District United States Attorney’s Office for their ongoing work and continued support in this investigation,” stated Special Agent in Charge Todd Duke who is the supervisor of the NCSBI’s Clandestine Laboratory Response Unit. 

As a result of an on-going investigation into methamphetamine production in the Wayne and Johnston County, areas, federal, state, and local authorities identified several individuals, including Samuel Wayne Hill, William Joseph Hill (Jody Hill), William Bryan Hill, Terry Matthew Hall (Matt Hall), Michael Eugene Custer, Samantha Leigh Ross-Varner, Dolly Wadsworth Evans, and others, were involved in the production of methamphetamine between 2010 and 2014. Manufacturing methamphetamine requires pseudoephedrine, found in over-the-counter cold medicine, as well as other commonly found ingredients including lithium (usually stripped from batteries), plastic tubing, dry ice, Coleman fuel, muriatic acid, fertilizer, and liquid drain cleaner.  The majority of these items can be purchased at retail stores such as Lowe’s Home Improvement Center and Walmart.

The investigation established that the conspiracy centered in the Brogden area of Johnston County.  The investigation established that residence and property owned by Evans was a hub of this conspiracy, along with the residences of Samuel Hill, Jody Hill, and related family properties.  Evans, a methamphetamine user, allowed her property to be used by all of the conspirators for manufacturing and using methamphetamine. Samuel Hill, Jody Hill, Bryan Hill, Custer, and Hall were methamphetamine cooks.  Evans, who had a job through the period of the conspiracy, allowed conspirators to live in her house and purchased chemicals and items used in the production of methamphetamine in return for methamphetamine.  Ross-Varner was a methamphetamine user and cook and she purchased pseudoephedrine and other items for use in the production of methamphetamine.  During a portion of the conspiracy, Ross-Varner lived with Evans and dated Samuel Hill.

The case was investigated by the North Carolina State Bureau of Investigation, the Johnston County Sheriff’s Office, the Wayne County Sheriff’s Office, the Wilson County Sheriff’s Office and the Drug Enforcement Administration.  Assistant U.S. Attorney Jennifer Wells prosecuted the case for the government.

RALEIGH – United States Attorney Thomas G. Walker announced today that a jury convicted AKIN SEAN EL PRECISE BEY, of Knightdale, North Carolina, and GEORGE LINCOLN STANLEY IV, of Durham, North Carolina of conspiracy to commit kidnapping and kidnapping.  AKIN SEAN EL PRECISE BEY was also convicted of being a felon in possession of a firearm and ammunition.  The jury returned its verdict following a trial in federal court before Senior United States District Judge W. Earl Britt.

The investigation showed that the victim had been kidnapped from his home after returning from attending a boxing match in Las Vegas.  The kidnappers laid in wait at the victim’s house and, after beating him badly, took him to a storage unit where he was held and tortured.  Crime scene technicians recovered the kidnappers’ fingerprints, as well as the victim’s blood, within the storage unit.  Zip ties were still attached to a chair within the storage unit and the victim’s personal identification was located on a table.  The victim, who was severely injured with a swollen eye, ligature marks on his wrists and ankles, and duct tape still on his face and neck, was eventually located by law enforcement on a dark dirt road in Nash County, North Carolina.  A search warrant executed at BEY’S house uncovered six firearms; a .32 caliber pistol, Judge Long Colt revolver, .40 caliber pistol, .38 caliber revolver, a rifle, and a 12 gauge shotgun.  At the time, BEY was prohibited from possessing any firearms as he had been previously convicted of a crime punishable by imprisonment for a term exceeding one year.

At trial, the evidence showed an elaborate scheme to target and kidnap the victim in order to steal money from him.  The defendants broke into the victim’s house when they knew the victim would be out of town.  The defendants waited in the victim’s home and attacked the victim when he arrived.  The defendants ransacked the victim’s home looking for money.  The defendants demanded money of the victim and kidnapped him where they assaulted the victim further in a storage unit and demanded more money.  A large sum of cash was taken from the victim.  At the time of their arrests, BEY had over $55,000.00 cash in his home and STANLEY had over $21,000.00 cash in his pocket. 

Two other individuals, Hubert Dixon, of Durham, North Carolina, and Judson Hugh Debnam, of Raleigh, North Carolina, were also charged with crimes related to this incident and pleaded guilty to conspiracy to commit robbery.  The defendants are set to be sentenced at the March 28, 2016 term of Court. 

The investigation and arrests were handled by the Raleigh Police Department, Federal Bureau of Investigation, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Raleigh/Wake City-County Bureau of Identification, State Bureau of Investigation, Wake County Sheriff’s Office, Durham County Sheriff’s Office and Johnston County Sheriff’s Office.  Special Assistant U.S. Attorney Jonathan Holbrook and Assistant U.S. Attorney Dena King represented the government.  Mr. Holbrook is a prosecutor with the Wake County District Attorney’s Office.  Wake County District Attorney Lorrin Freeman has assigned Mr. Holbrook to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.  Mr. Holbrook’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.

RALEIGH – United States Attorney Thomas G. Walker announced today that the Eastern District of North Carolina collected $15,047,564.36 in criminal and civil actions in Fiscal Year 2015.  Of this amount, $11,011,638.80 was collected in criminal actions and $4,035,925.56 was collected in civil actions.

Additionally, the Eastern District worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $64,395,812.90 in cases pursued jointly with these offices.  Of this amount, $64,323,714.67 was collected in criminal actions and $72,098.23 was collected in civil actions.

Attorney General Loretta E. Lynch announced on December 3, 2015 that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015.  The more than $23.1 billion in collections in FY 2015 represents more than seven and half times the approximately 2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorneys’ offices and the main litigating divisions in that same period.

"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch.  “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver.  I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”

“The United States Attorney’s Office has made the efficient and effective collection of restitution on behalf of victims of crime a top priority,” stated Mr. Walker.  “Collection of restitution on behalf of the United States is essential during the current budgetary restraints.”

During the past fiscal year the Eastern District of North Carolina has returned millions of dollars to victims of crime.  In one such case, US v. Dwight Lane Woolard, over $540,000.00 was recovered and returned to the Department of Defense. In another case, US v. Clay Taylor Strickland, the office recovered and returned $298,415.00 to the United States Department of Agriculture following Strickland’s conviction.

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims.  The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.  While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

Additionally, the U.S. Attorney’s office in the Eastern District of North Carolina, working with partner agencies and divisions, collected $3,915,737.00 in asset forfeiture actions in FY 2015.  Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced JASON LEE LEVESQUE, 42, of Jacksonville, North Carolina, to 121 months imprisonment, followed by 5 years of supervised release.

JASON LEE LEVESQUE was named in an Indictment filed on March 3, 2015 charging him with receipt and possession of child pornography.  On August 31, 2015, LEVESQUE pled guilty to receipt of child pornography.

On January 31, 2014, agents with the FBI Child Exploitation Task Force in Dallas, Texas successfully downloaded over 1,000 images of child pornography using peer to peer file sharing software from the defendant at his IP address. A subsequent search of computers and other devices from the defendant’s Jacksonville, North Carolina home revealed that LEVESQUE had downloaded over 1300 images of child pornography.

Investigation of this case was conducted by the Federal Bureau of Investigation.  Assistant United States Attorney Carrie Randa represented the government.

This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level.  For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today, Chief United States District Judge James C. Dever III sentenced ARTKES BENNETT, 36, of Greenville, North Carolina, to 192 months in prison followed by 6 years of supervised release for conspiracy to distribute and possess with the intent to distribute quantities of methamphetamine and heroin, distribution of methamphetamine, and possession with the intent to distribute heroin.  BENNETT previously pled guilty to these charges on June 15, 2015. 

The Greenville Regional Drug Task Force used an informant to buy methamphetamine from BENNETT on December 30, 2014.  BENNETT was arrested on January 13, 2015, after 50 bags of heroin were found in his car.  The investigation revealed that between June 2014 and January 2015, BENNETT was responsible for distributing approximately 80 grams of heroin, .95 grams of methamphetamine, and 907 grams of cocaine in Pitt County, North Carolina. 

BENNETT faced an enhanced penalty due to his status as a career offender based on two prior convictions for selling cocaine and a prior conviction for possession with the intent to distribute heroin.  On July 30, 2014, BENNETT was a participant in the Greenville Regional Offender Watch or “GROW” Up Program.  This focused deterrence program is designed to assist repeat offenders in becoming more productive members of their communities by offering education opportunities, work training, and substance abuse treatment.  Offenders are provided a notice of prohibited offenses and the severe consequences of committing such offenses. 

The investigation of this case was conducted by the Greenville Regional Drug Task Force.  The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry.  Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office.  Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.  Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.

RALEIGH – United States Attorney Thomas G. Walker announced that yesterday in federal court, before Chief United States District Judge James C. Dever III, APRIL LYNN LOCKLEAR, 35, of Rowland, North Carolina and CHONA KAY OXENDINE, 32, of Shannon, North Carolina pleaded guilty to conspiracy to make false entries in bank records.  The charge carries a maximum penalty of 5 years’ imprisonment, and a fine of $250,000.00.  

On March 24, 2015, LOCKLEAR and OXENDINE were indicted by a federal grand jury on 16 counts related to crimes committed while they were employed by the Lumbee Guaranty Bank headquartered in Pembroke, North Carolina.  During the course of an investigation into a bank robbery that occurred at the Lumbee Guaranty Bank branch in Red Springs, North Carolina on April 9, 2010, it was discovered that $500,000.00 was missing from the bank in addition to the money stolen during the robbery.  The investigation quickly focused on LOCKLEAR and OXENDINE.  When questioned by investigators, LOCKLEAR and OXENDINE claimed that they were robbed of $500,000.00 while working alone in the branch in 2009, but did not report the incident due to concerns for their safety.  They admitted to falsifying a cash out ticket for the missing funds.  A cash out/in ticket is a document that is created to post money into or out of an account, teller drawer or the vault so that it is electronically accounted for. 

Investigation revealed that beginning in August 2009, LOCKLEAR and OXENDINE falsified bank entries, reports, and transactions by creating false tickets ranging from $150,000.00 to $500,000.00.  These false tickets were created to throw off any audit that would have uncovered the missing money to make it look like money had left the bank.  These false entries gave the appearance during an audit that the books were in balance, when in fact they were not. 

Additional investigation into LOCKLEAR’S and OXENDINE’S personal bank accounts showed a high volume of unaccounted for cash deposits over several years.

Chief Judge Dever scheduled sentencing for the Court’s February 22, 2016 term of court.

The investigation of this case was conducted by the Federal Bureau of Investigation.  Assistant United States Attorney Felice M. Corpening represents the government.

RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrance W. Boyle sentenced MARKIE DEVON JONES, 39 of Clayton, North Carolina, to 180 months followed by 3 years of supervised release.

On August 12, 2015, JONES pled guilty to one count of felon in possession of a firearm and ammunition.  

According to the investigation, On November 6, 2014, a deputy with the Johnston County Sheriff’s Office observed JONES driving a vehicle erratically and crossing the center line of the roadway.  The deputy made a traffic stop and noticed JONES attempting to conceal something as he was exiting the vehicle.  A Clayton Police Officer arrived at the scene and they attempted to take JONES into custody, but Jones resisted.  After a brief struggle, JONES was placed in handcuffs and searched.  A stolen loaded .45 caliber handgun was discovered in JONES’ rear waistband area.  Additionally, several ski masks and latex gloves were found in the vehicle’s glove box.  JONES has multiple previous felony convictions and was sentenced as an armed career criminal.

The criminal investigation of this case was conducted by the Johnston County Sheriff’s Office and the Clayton Police Department.  Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.

RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, ANTONIO DASHAWN PITT, 21, of Wilson, North Carolina, was sentenced before United States District Judge James C. Dever, III.  PITT received 125 months imprisonment followed by a 4 year term of supervised release.

On November 24, 2014, a Criminal Indictment was filed charging PITT with armed bank robbery, in violation of 18 U.S.C. § 2113, and brandishing a firearm during a crime of violence, in violation of 18 U.S.C. § 924(c).  On May 4, 2015, PITT pleaded guilty to the charges contained in the indictment.

According to the investigation, on July 7, 2014, officers of the Wilson Police Department in Wilson, North Carolina, responded to a robbery call at the State Employees Credit Union (SECU) in Wilson.  The investigation revealed that PITT entered the credit union wearing a wig and dark glasses.  PITT approached a teller, threw a bag at her, and demanded that she fill the bags.  As PITT jumped over the counter, he lost his wig.  According to one witness, he pointed the firearm in her direction and ordered her to the floor.  After the teller filled the bag, PITT approached the window teller before he jumped over the counter.  A total of $22,236.06 was taken from the bank; however, $20,236.06 was immediately recovered after a dye pack exploded in the bag.  PITT fled the scene on a bicycle.  The wig, glasses, firearm, and bicycle were all recovered.  PITT provided a confession to the robbery. 

Investigation of this case was conducted by the Federal Bureau of Investigation and the Wilson Police Department.  Assistant United States Attorney Rudy E. Renfer prosecuted the case for the United States.

NEW BERN - United States Attorney Thomas G. Walker announced that Tuesday in federal court, LEIGH LANGLEY COBB, 43, of Winterville, North Carolina, pleaded guilty to Making Materially False, Fictitious, and Fraudulent Statements and Entries Concerning Health Care Matters.

According to the Criminal Information to which COBB pleaded guilty, between the years 2000 and 2012, COBB worked for one of several clinics and pharmacies operated by the Brody School of Medicine, within East Carolina University (ECU) in Greenville, North Carolina.  COBB had responsibilities pertaining to the receipt and dissemination of drugs to ECU patients.  COBB also assisted patients at one of the Brody School of Medicine’s various clinics to apply to participating drug companies to receive medicine at a reduced rate, through what are known as Patient Assistance Programs (PAPs).  

Between January of 2010 and October of 2012, COBB falsified numerous PAP applications and transmitted them to various victim drug companies.  The applications were false because many of the prescriptions contained within them were fraudulent and forged.  While in many instances patients at ECU’s clinics genuinely sought medicine from the drug companies pursuant to the PAP programs, COBB added numerous additional drugs to the applications for which the patient did not have a prescription, and which were not medically necessary for the patient.  In many instances, the patient at issue had not been prescribed any of the medications listed on the application, and the physicians identified were not the physicians of record for the patients listed on the application.  To cause the drug companies to supply these drugs, COBB forged signatures of both physicians and patients.  One such false application occurred on March 27, 2012.

After receiving the false applications transmitted by COBB on behalf of ECU patients, the drug companies relied upon them and shipped medicines to The Bernstein Center Pharmacy, within the ECU system, that were not covered by a doctor’s prescription.  COBB received the Unauthorized Drugs and placed them into The Bernstein Center Pharmacy’s drug inventory for later dissemination and sale to other patients.

The total losses from the offense are unknown, but the parties are in agreement that the losses are between $550,000 and $1.5 Million. 

At sentencing, COBB faces up to 5 years in prison and 3 years of supervise release.  The defendant also faces a fine of up to $250,000 and restitution if ordered by the court.

The investigation of this case was conducted by the East Carolina University Police Department and the United States Food and Drug Administration – Office of Criminal Investigations.   Assistant United States Attorney William M. Gilmore of the Economic Crimes Division represents the United States.

RALEIGH - United States Attorney Thomas W. Walker announced RANDOLPH JOHNSON SPAIN, 26, was sentenced yesterday by Senior United States District Judge James C. Fox to 240 months imprisonment.

SPAIN was found guilty after trial by jury in January, 2015, of Interstate Transportation in Support of Prostitution on two separate occasions.  The evidence at trial indicated SPAIN met and wooed a woman for several months, then took her to Myrtle Beach, SC, where he told her he was a pimp and she would be his prostitute or “face the consequences.”  Thereafter, he controlled that woman, as well a second woman who testified at trial, through violence, and took both women to Virginia and other states for prostitution.  The investigation revealed SPAIN also controlled and exploited additional women.   

SPAIN was sentenced to 240 months’ imprisonment, the statutory maximum.  The term of imprisonment is to be followed by 10 years’ supervised release.

Investigation of this case was conducted by the Wilmington Police Department, New Hanover County Sheriff’s Office, and the United States Department of Homeland Security.

RALEIGH - United States Attorney Thomas G. Walker announced that today in federal court, JAIME LEONARD SMITH, 35, of Morehead City, North Carolina, pleaded guilty to Perjury.

According to the Criminal Information, SMITH was the president of CCMT, Inc., doing business as Crystal Coast Medical Transport (CCMT).  CCMT was a nonemergency ambulance transportation company that operated in Craven and Carteret counties.

In 2012, CCMT and SMITH became the subject of investigation after a member of the public videotaped CCMT employees routinely transporting patients in CCMT ambulances when the patients had the ability to walk or ride in wheelchairs.  Medicare and TRICARE generally do not cover nonemergency ambulance transportation services when the patient has the ability to walk or ride in a wheelchair.  Additionally, for reimbursement to be covered by Medicare and TRICARE, the ambulance company must obtain an order, known as a Physician’s Certification Statement (PCS), from the patient’s physician indicating that the ambulance trip is medically required.

In October of 2013, the United State Attorney’s Office for the Eastern District of North Carolina (USAO-EDNC) issued Civil Investigative Demand (CID) upon CCMT, to the attention of SMITH.  The CID required CCMT to produce to the government, “Any and all Physician Certification Statements on which you relied to provide ambulance transport to any beneficiary of a government healthcare program, including but not limited to Medicare, Medicaid, or TRICARE for the time period January 1, 2011 [to] the present.”  In November of 2013, SMITH produced records and swore under oath that the records she produced were responsive to the CID.

In fact, the investigation revealed that in many instances, SMITH had altered the PCS forms to include additional markings that were not made by the patients’ physicians.  In some instances, PCS forms were fabricated to cover dates of service for which no genuine PCS form existed.  In other instances, the PCS forms were altered to include additional markings that were not made by the patient’s physician.  For example, some PCS forms were altered to indicate that the ambulance transport was medically necessary, or to reflect that the patient had additional illnesses or medical conditions justifying the ambulance transport.

In no instance did the physicians authorize SMITH or any other agent of CCMT to fabricate or alter PCS forms for their patients.

At sentencing, SMITH faces up to 5 years in prison and 3 years of supervise release.  The defendant also faces a fine of up to $250,000 and restitution if ordered by the court.

The investigation of this case was conducted by agents of the United States Department of Health and Human Services Office of the Inspector General, and the Defense Criminal Investigative Service.  Assistant United States Attorney William M. Gilmore of the Economic Crimes Division represents the United States.

A Colorado Springs, Colorado, man pleaded guilty today in federal court before U.S. District Judge Terrence W. Boyle of the Eastern District of North Carolina to solicitation and receipt of a gratuity, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina.

In connection with his plea, Captain David Anthony Kline, 32, admitted that while serving as a first lieutenant in the U.S. Army stationed at Kandahar Air Field (KAF) in Afghanistan, he sought and accepted $50,000 in gratuities from a contractor who was doing business with the U.S. military.  Specifically, from January 2008 to April 2009, then-1st Lt. Kline was deployed to KAF where he oversaw the handling of transportation movement requests (TMRs) directing the transport of supplies from one location to another across Afghanistan.  Although contracting procedures technically did not permit the authorizing officer to specify the particular Afghan trucking company that would perform the transportation, in practice, Kline and others were able to designate the Afghan company of their choice.  Kline admitted that he sought and accepted $50,000 in U.S. currency from an Afghan national who owned a trucking company doing business on government contracts at KAF, in return for Kline’s facilitation of the award and payment of numerous transportation contracts.

The case was investigated by the Defense Criminal Investigation Service, Army Criminal Investigation Command, the Special Inspector General for Afghanistan Reconstruction and FBI.  The case was prosecuted by Trial Attorney Wade Weems of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina.

Raleigh – United States Attorney Thomas G. Walker announced that in federal court today, DAVID ANTHONY KLINE, 32, of Colorado Springs, Colorado, pled guilty before United States District Judge Terrence W. Boyle to solicitation and receipt of a gratuity and aiding and abetting the same, all in violation of Title 18, United States Code, Sections 201(c)(1)(B) and 2.

According to the Criminal Information filed on September 9, 2015, and information presented in open court, DAVID ANTHONY KLINE, while serving as a First Lieutenant in the United States Department of the Army and stationed at Kandahar Air Field, in Afghanistan, did seek and accept $50,000 in gratuities from a contractor doing business with the United States military.  Specifically, from January 2008 to April 2009, then-Lieutenant KLINE was deployed to Kandahar Air Field (KAF), Afghanistan as a member of the 189th Combat Sustainment Support Battalion (189th CSSB), and he served as the Officer-in-Charge (OIC) of the Movement Control Team.  The 189th CSSB is based at Fort Bragg and KLINE deployed to Afghanistan from Fort Bragg.  KLINE has since been promoted to the rank of Captain.

As the OIC, KLINE oversaw the handling of Transportation Movement Requests, or TMRs, which are the means by which a military unit in the field submits a request for the transport of military items, to include fuel and equipment, food and other supplies, from one location to another across Afghanistan.

Although contracting procedures technically did not permit the authorizing officer to specify the particular Afghan trucking company that would perform the transportation, in practice, Kline and others were able to designate the Afghan company of their choice.  KLINE admitted that he sought and accepted $50,000 in U.S. currency from an Afghan national who owned a trucking company doing business on government contracts at KAF, in return for KLINE’S facilitation of the award and payment of numerous transportation contracts.

Inspector General John Sopko of the Special Inspector General for Afghanistan Reconstruction (SIGAR) stated: "Stealing from the U.S. government undermines our mission in Afghanistan,

plain and simple. Not only did Captain Kline seek to defraud American taxpayers and abuse his position of authority as an officer, but he also put his fellow soldiers in harm's way by stealing vital resources that are needed for legitimate operations."

"As a First Lieutenant in the U.S. Army, David Kline had an obligation not only to conduct business in the best interest of his country, but also for those service men and women he was responsible for in Afghanistan.  Anyone willing to misuse government resources for their own profit will be held accountable," said John Strong, Special Agent in Charge of the FBI in North Carolina.

"The Defense Criminal Investigative Service (DCIS) aggressively pursues those who tarnish the reputation of the U.S. Department of Defense abroad as our Warfighters serve honorably to accomplish our global missions," said DCIS Special Agent in Charge John F. Khin. "Corruption and theft in a combat environment degrade the effectiveness of the U.S. Armed Forces."

The case was investigated by the Defense Criminal Investigation Service (DCIS), Army Criminal Investigation Command (CID) Major Procurement Fraud Unit, the Office of the Special Inspector General for Afghanistan Reconstruction (SIGAR), and the Federal Bureau of Investigation (FBI).  The case was prosecuted by Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina and Trial Attorney Wade Weems of the U.S. Department of Justice Criminal Division’s Fraud Section.

WILMINGTON – United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge James C. Fox sentenced THurman ray bohne, jr., 48, of Wilson, North Carolina to 162 months imprisonment, followed by 10 years of supervised release.

bohne was named in an Indictment filed on January 7, 2015 charging him with Conspiracy to Distribute and Possess With Intent to Distribute 5 Kilograms or more of Cocaine.  On June 29, 2015, bohne pled guilty to that charge.

According to the investigation, BOHNE and his co-conspirators distributed over 13 kilograms of cocaine in the Wilson, North Carolina area from 2007 to 2012.

Investigation of this case was conducted by the Drug Enforcement Administration, the Wilson County Sheriff’s Office, the Wilson Police Department, and the Greenville Police Department.  Assistant United States Attorney Lawrence J. Cameron represented the government.

Raleigh – United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise Flanagan sentenced KIMBERLY NICOLE TORRES, 40, of Wendell, North Carolina to 52 months imprisonment; 3 years supervised release, and $104,624 restitution.  On April 16, 2015, TORRES pled guilty to False, Fictitious and Fraudulent Claim for Refund.  Evidence presented at TORRES’ plea and sentencing showed that TORRES used the identities of others, often without their knowledge, to prepare and file fraudulent tax returns.

U.S. Attorney Walker stated, “Our tax system relies on the honesty of tax payers with a heightened duty of honesty expected from professional tax preparers.  Whenever someone like TORRES deliberately files false returns, the U.S. Attorney’s Office in support of the IRS will pursue the matter through the Courts as provided by our laws.”

The criminal investigation of this case was conducted by Internal Revenue Service Criminal Investigation and United States Secret Service.  Assistant United States Attorney David Bragdon handling the case on behalf of the government.

NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flanagan sentenced RAUL PINEDA, 32, of Anaheim, California, to 89 months in prison and 5 years of supervised release for conspiracy to distribute and possess 5 kilograms or more of cocaine and conspiracy to launder monetary instruments.  PINEDA previously pled guilty to these charges on May 13, 2014.   FABIO HIROCHI INOUE, one of PINEDA’S co-conspirators, was sentenced to 51 months in prison and 5 years of supervised release for the same charges by Judge Flanagan on June 10, 2015.

The investigation revealed that between April 2013 and September 22, 2013, PINEDA sent INOUE, to Johnston County, North Carolina, to deliver cocaine and collect drug proceeds for a drug trafficking organization operating out of Mexico and California.  INOUE made several trips during this time period to meet with cocaine traffickers in the Johnston County, N.C., area.  During these trips INOUE delivered multiple kilograms of cocaine and collected drug proceeds.  INOUE laundered some of the drug proceeds by depositing portions into a bank account in the name of a real estate business located in California.  Based on the investigation, the United States Drug Enforcement Administration (DEA) discovered that INOUE would be flying to the Raleigh Durham International Airport with several kilograms of cocaine on September 22, 2013.  Agents found INOUE at the airport and seized his luggage which contained 3,891 grams of cocaine.  Agents arrested INOUE after seizing the cocaine.

On November 19, 2013, DEA learned that PINEDA traveled to Garner, N.C., to transport 2 kilograms of cocaine to the Johnston County traffickers.  Agents located PINEDA after he exited a hotel in Garner to deliver the cocaine.  Agents arrested PINEDA after locating 2 kilograms of cocaine in PINEDA’S backpack.  In total, PINEDA was found to be responsible for trafficking 14.89 kilograms of cocaine and laundering drug proceeds totaling $170,985.

The investigation of this case was conducted by the United States Drug Enforcement Administration, the Johnston County Sheriff’s Office and the Internal Revenue Service-Criminal Investigation Division.  The federal prosecution was handled by Special Assistant United States Attorney Glenn Perry.  Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office.  Pitt County District Attorney Kimberly Robb has assigned Mr. Perry to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.  Mr. Perry’s assignment to the United States Attorney’s Office has been made possible by grants funded by the Governor’s Crime Commission.

RALEIGH – United States Attorney Thomas G. Walker confirms the arrest this morning of North Carolina Superior Court Judge Arnold Ogden Jones, II.  A federal grand jury returned a three-count indictment yesterday charging Jones with Promising and Paying a Bribe to a Public Official, Promising and Paying a Gratuity to a Public Official, and Corruptly Attempting to Influence an Official Proceeding.

Jones is scheduled to make his initial appearance at 10:00 a.m. this morning before U.S. Magistrate Judge Robert T. Numbers in Raleigh.  A copy of the indictment is attached.

WILMINGTON – United States Attorney Thomas G. Walker announced today in federal court, Senior United States District Judge James C. Fox sentenced PARIS CORDAVA WILLIAMS, 42, from the District of Columbia, to 108 months imprisonment followed by 3 years of supervised release.  Additionally, he was fined $3,500 and ordered to pay $1,579 in restitution.  On July 6, 2015 a federal jury convicted WILLIAMS and ROBERT EARL MAYS of bank robbery and aiding and abetting.  WILLIAMS also was found guilty of possession of a firearm by a felon.  Prior to trial, on June 29, 2015, a third defendant RICKY FRANKS pled guilty to bank robbery, aiding and abetting and felon in possession of a firearm. MAYS was sentenced to 125 months on September 29, 2015 and FRANKS is scheduled for sentencing for the November 30, 2015, term of court.

According to the investigation, WILLIAMS, MAYS and FRANKS were traveling in a car rented by FRANKS from the District of Columbia.  On November 13, 2014, close to closing time, WILLIAMS and FRANKS entered the PNC Bank located at 3401 Raleigh Road Parkway in Wilson, North Carolina and robbed it.  FRANKS vaulted the teller counter and took approximately $1,579.00 in United States currency from a teller’s drawer.  When FRANKS grabbed the money, he also grabbed the GPS tracking device.  FRANKS and WILLIAMS hid with the money and tracking device in the trunk of the rental car.  MAYS drove the car a short distance away.  The Wilson Police Department was alerted of the robbery and also notified that the moving tracking device became stationary on Raleigh Road.  After a systematic search of cars in a stopped line of traffic near the bank, by Wilson Police Department officers, officers located WILLIAMS and FRANKS in the car’s trunk with the bag of money, GPS tracker and a firearm.

Investigation of this case was conducted by the Federal Bureau of Investigation, and the Wilson Police Department.  The Bureau of Alcohol, Tobacco, Firearms, and Explosives also assisted.  Assistant United States Attorneys S. Katherine Burnette and Carrie D. Randa represented the government.