Eastern District of North Carolina

WILMINGTON - United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge James C. Fox sentenced CHRISTOPHER LEE FUNK, 35, of Concord, North Carolina to 5 years probation and 200 hours of community service.

FUNK was named in an indictment charging him with knowingly aiming the beam of a laser pointer at an aircraft in flight (a helicopter), in violation of the provisions of Title 18, United States Code, Section 39A.  On May 11, 2015, FUNK pleaded guilty to this charge.

According to the investigation, on May 6, 2014, at the Cape Fear Regional Jetport in Oak Island, North Carolina, a student pilot and flight instructor was completing a nighttime cross country training flight in a helicopter. At approximately 12:10AM, as the student was attempting a practice landing as part of his training, the helicopter cockpit was struck with a green laser.

FUNK, who at the time was outside a residence near the airport, aimed the beam of a hand-held laser at the helicopter and maintained the beam on the cockpit as it descended from about 600 feet.  When the laser hit the acrylic bubble windscreen, the beam refracted and lit up the cockpit with bright green light, making it very difficult to see both inside and outside the cockpit.  The student was able to maintain control of the helicopter and land safely land on the runway.

The student needed to make another landing for his training, so to avoid the area where the laser appeared to originate, the instructor and student attempted to land further away, at the southern end of the runway.  However, Funk again aimed the laser at the helicopter, striking the cockpit and blinding the student and instructor.  The student was able to land safely, and the instructor immediately reported the incident to local law enforcement.

With the instructor’s assistance, officers with the Oak Island Police Department were able to determine the area within a residential neighborhood next to the airport where the laser originated.  Officers approached the residence and encountered FUNK, and he admitted that he may have shined the laser at the helicopter.  The laser device was seized by officers after it was turned over by another individual at the residence.

The case was investigated by the Oak Island Police Department and the Federal Bureau of Investigation.  Assistant United States Attorney Eric D. Goulian prosecuted the case for the government.

RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, Senior United States District Judge W. Earl Britt sentenced SHAWNTANNA LEMARUS THOMPSON, 27, of Goldsboro, to 120 months imprisonment followed by 3 years of supervised release.  On August 3, 2015, THOMPSON pleaded guilty to possession with intent to distribute a quantity of marijuana and to felon in possession of a firearm charges.

On August 8, 2014, a Goldsboro Police Officer responded to a call about a subject who was waving a gun in the air.  Upon his arrival, the officer observed THOMPSON, who matched the subject’s description.  Upon seeing the officer, THOMPSON quickly stood up and walked away.  With his back to the officer, THOMPSON reached into his waistband and retrieved a revolver which he threw into nearby bushes.  The officer located the revolver which was a loaded Smith & Wesson, .38 special revolver.  The officer also recovered 11 grams of marijuana and 98 small baggies from THOMPSON’S person.  Once at the jail facility, additional marijuana was located on THOMPSON.

 On October 17, 2014, a Goldsboro Police Officer responded to a disturbance call in Goldsboro.  As the officer approached the scene, he heard multiple gunshots and observed THOMPSON standing with his hand behind his back.  As the officer passed, THOMPSON moved his hands to the front of his body and the officer noticed the butt of a handgun in THOMPSON’S hand.  The officer exited his vehicle and ordered THOMPSON to stop and to show his hands.  THOMPSON fled from the officer.  The officer searched the path where THOMPSON was running and found a loaded Radom P35 9mm handgun which had the serial number scratched off.

Investigation of this case was conducted by the Goldsboro Police Department and by the Bureau of Alcohol Tobacco Firearms and Explosives.  Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.

WASHINGTON – The Department of Justice has reached 70 settlements involving 457 hospitals in 43 states for more than $250 million related to cardiac devices that were implanted in Medicare patients in violation of Medicare coverage requirements, the Department of Justice announced today.

“While recognizing and respecting physician judgment, the department will hold accountable hospitals and health systems for procedures performed by physicians at their facilities that fail to comply with Medicare billing rules,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “We are confident that the settlements announced today will lead to increased compliance and result in significant savings to the Medicare program while protecting patient health.” 

An implantable cardioverter defibrillator, or ICD, is an electronic device that is implanted near and connected to the heart.  It detects and treats chaotic, extremely fast, life-threatening heart rhythms, called fibrillations, by delivering a shock to the heart, restoring the heart’s normal rhythm.  It is similar in function to an external defibrillator (often found in offices and other buildings) except that it is small enough to be implanted in a patient’s chest.  Only patients with certain clinical characteristics and risk factors qualify for an ICD covered by Medicare.

Medicare coverage for the device, which costs approximately $25,000, is governed by a National Coverage Determination (NCD).  The Centers for Medicare and Medicaid Services implemented the NCD based on clinical trials and the guidance and testimony of cardiologists and other health care providers, professional cardiology societies, cardiac device manufacturers and patient advocates.  The NCD provides that ICDs generally should not be implanted in patients who have recently suffered a heart attack or recently had heart bypass surgery or angioplasty.  The medical purpose of a waiting period -40 days for a heart attack and 90 days for bypass/angioplasty - is to give the heart an opportunity to improve function on its own to the point that an ICD may not be necessary.  The NCD expressly prohibits implantation of ICDs during these waiting periods, with certain exceptions.  The Department of Justice alleged that from 2003 to 2010, each of the settling hospitals implanted ICDs during the periods prohibited by the NCD.

“The settlements announced today demonstrate the Department of Justice’s commitment to protect Medicare dollars and federal health benefits,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida.  “Guided by a panel of leading cardiologists and the review of thousands of patients’ charts, the extensive investigation behind the settlements was heavily influenced by evidence-based medicine.  In terms of the number of defendants, this is one of the largest whistleblower lawsuits in the United States and represents one of this office’s most significant recoveries to date.   Our office will continue to vigilantly protect the Medicare program from potential false billing claims.”

“Working as a team with the Department of Justice to investigate and settle false billing claims of this magnitude has resulted in substantial recoveries to Medicare and the successful enforcement of Medicare’s coverage requirements for these procedures,” said Inspector General Daniel Levinson of the Department of Health and Human Services’ Office of Inspector General (HHS-OIG).

The 70 settlements, representing nearly 500 hospitals, are listed on the attached chart.  Most of the settling defendants were named in a qui tam, or whistleblower, lawsuit brought under the False Claims Act, which permits private citizens to bring lawsuits on behalf of the United States and receive a portion of the proceeds of any settlement or judgment awarded against a defendant.  The lawsuit was filed in federal district court in the Southern District of Florida by Leatrice Ford Richards, a cardiac nurse, and Thomas Schuhmann, a health care reimbursement consultant.  The whistleblowers have received more than $38 million from the settlements.  The Department of Justice is continuing to investigate additional hospitals and health systems.

The settlements were the result of a coordinated effort among the U.S. Attorney’s Office of the Southern District of Florida, the Civil Division’s Commercial Litigation Branch and HHS-OIG, Office of Investigations and Office of Counsel to the Inspector General.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $26.2 billion through False Claims Act cases, with more than $16.4 billion of that amount recovered in cases involving fraud against federal health care programs.

The claims resolved by these settlements are allegations only and there has been no determination of liability.

RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Chief United States District Judge James C. Dever III sentenced TERRANCE LAMAR CARR, a/k/a Lil Bud, 23, of Elm City, North Carolina to 204 months imprisonment, followed by 5 years of supervised release.

CARR was named in a three-count Indictment filed on March 24, 2015 charging him with conspiracy to distribute and possess with the intent to distribute 280 grams or more of cocaine base (crack); possession with the intent to distribute a quantity of marijuana and a quantity of cocaine base (crack); and possession of a firearm in furtherance of a drug trafficking crime.

On June 2, 2015, CARR pleaded guilty to conspiracy to distribute and possess with the intent to distribute 280 grams or more of cocaine base (crack) and possession of a firearm in furtherance of a drug trafficking crime.

CARR was associated with a narcotics distribution organization led by Tavaris Delino Battle, previously sentenced to life imprisonment.  According to the investigation, CARR was involved with drug trafficking in Wilson, Edgecombe, and Nash counties from 2008 until his federal arrest on March 27, 2015.  Throughout the investigation, a number of controlled purchases from CARR were conducted. Additionally, a number of traffic stops were affected on CARR during the investigation, which resulted in the seizure of controlled substances and large quantities of U.S. currency.  Based on the investigation, CARR is accountable for the distribution of over 730 grams of cocaine base (crack).  CARR also possessed and distributed powder cocaine and marijuana throughout the conspiracy.  CARR possessed a firearm, which had a scratched serial number, in furtherance of his drug trafficking activities.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Rocky Mount Police Department, Sharpsburg Police Department, Edgecombe County Sheriff’s Office, Nash County Sheriff’s Office, Wilson County Sheriff’s Office, and Wilson Police Department.  Assistant United States Attorney Dena J. King represented the government.

RALEIGH – United States Attorney Thomas G. Walker announced today that a jury convicted WILLIAM ELDRIDGE ASKEW, III, of Rocky Mount, North Carolina, of conspiracy to possess with intent to distribute 100 grams or more of heroin and aiding and abetting the possession with intent to distribute heroin.  The jury returned its verdict following a trial in federal court before United States Chief District Judge James C. Dever, III.

Following an investigation into suspected heroin trafficking organizations in Rocky Mount, North Carolina; law enforcement agents learned that ASKEW and a co-defendant, MUTAR ALI BROCK, would be transporting 100 grams or more of heroin into the City of Rocky Mount from Detroit, Michigan for distribution in and around Rocky Mount and Wilson, North Carolina.  Rocky Mount Police intercepted the vehicle as it entered Rocky Mount.  ASKEW was driving the vehicle when it was stopped by law enforcement personnel.  A search of the vehicle led to the seizure of heroin, marijuana and drug paraphernalia.

BROCK previously pled guilty to conspiracy to distribute and possess with the intent to distribute heroin.  At sentencing, ASKEW faces a minimum of five years and up to forty years imprisonment.

The investigation and arrests were handled by the Rocky Mount Police Department with the assistance of the United States Drug Enforcement Administration and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives.  The North Carolina Bureau of Investigations, Forensics Lab provided forensic assistance.  Assistant U.S. Attorney Edward Gray and Special Assistant U.S. Attorney Patrick Weede represented the government.

RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, before Chief United States District Judge James C. Dever III, HARRY C. MANN, age 79, of Manns Harbor, North Carolina, pleaded guilty to accepting illegal gratuities while employed by the U.S. Department of Navy at the Dare County Bombing Range.  The charge carries a maximum penalty of two years’ imprisonment, a fine of $250,000 or twice the gain to the defendant, restitution, one year supervised release, and a $100 special assessment.

According to the United States Attorney’s factual proffer, Mann, had been employed by the Navy at the range southwest of Manteo, since 1968.  The range provides air warfare training support to the Navy and the Marine Corps.  Aviators practice dropping inert bombs and firing live rounds of ammunition at practice targets.  As range manager, Mann’s official duties included constructing and maintaining the targets.  Between January 2005 and May 2011, Mann requisitioned approximately 16 million dollars in excess government property, which included many types of functional heavy equipment, like trucks, excavators, bulldozers, cranes, trailers, and metal connex boxes.  He obtained the property from the Defense Reutilization and Marketing Office (DRMO), which was created by the Department of Defense to centralize the disposal of excess property for better accountability and to reutilize military property within the Department of Defense.  If the Department of Defense no longer has use for the property, excess material may be used for emergency management in the United States and humanitarian aid worldwide.  The Department of Defense could also sell excess property to the public.

Mann, however, without proper authorization, sold DRMO acquired property to local metal scrappers.  These men paid Mann a percentage of the proceeds they received for scrapping numerous pieces of heavy equipment and aluminum expedition runway matting.  In total, these men state they paid Mann approximately $175,000 in kickbacks.  Mann, according to the government’s proffer, demanded that these men pay him in cash when they were alone so others could not witness the payments.  One such cash payment of $16,300 was paid to Mann at his residence on May 18, 2011.  Mann told the local scrapper to put the envelope of cash in a flower pot.  These men, Rudy Lozano and John Williams, previously pleaded guilty to Theft of Government Property.

Chief Judge Dever scheduled sentencing for the Court’s January 25, 2016 term of court.

"One of DLA OIG's missions is to investigate and support the prosecution of crimes relating to fraud, waste and abuse of Department of Defense property," said Jerry Unruh, DLA's deputy inspector general.  "It is essential that we hold government employees accountable for using their positions of trust for their own personal gain at the expense of the US Treasury."

"Corrupt Department of Defense employees who enrich themselves at the expense of American taxpayers are reprehensible," said John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service.  "DCIS' top priority is to root out fraud and corruption affecting the DOD, and bring these violators to justice."

The investigation of this case was jointly conducted by the Navy Criminal Investigative Service, the Department of Defense Investigative Service, and the Defense Logistics Agency (DLA), Office of the Inspector General.  The Navy was first alerted of the criminal activity by inspectors from the North Carolina Department of Motor Vehicles after witnessing the transportation of heavy pieces of equipment in the Edenton area.   Assistant United States Attorneys Felice M. Corpening and Susan B. Menzer represented the government.

RALEIGH – United States Attorney Thomas G. Walker announced that on Friday, October 23, 2015 in federal court, Chief United States District Judge James C. Dever III sentenced Benjamine fitzgerald ransome, 42, of Rocky Mount, North Carolina to 45 months imprisonment, followed by 3 years of supervised release.

ransome was named in an Indictment filed on March 3, 2015 charging him with distribution of a quantity of cocaine base (crack); possession with intent to distribute a quantity of cocaine; possession of a firearm in furtherance of a drug trafficking crime; and possession of a firearm by a felon.  On July 13, 2015, Ransome pleaded guilty to possession with intent to distribute a quantity of cocaine.

According to the investigation, RANSOME distributed marijuana, cocaine, and cocaine base (crack) in Rocky Mount, North Carolina from 2012, until April 24, 2014.  Law enforcement utilized a confidential informant to conduct controlled purchases of narcotics from RANSOME at B&R Auto Sales in Rocky Mount, North Carolina where RANSOME worked as a car salesman.  Law enforcement executed a search warrant at B&R Auto Sales where they seized marijuana, a shotgun, and drug paraphernalia.  A search warrant was also executed at RANSOME’s home, which uncovered cocaine, marijuana, a .38 caliber revolver, and drug paraphernalia.

The case was investigated by the Nash County Sheriff’s Office, Edgecombe County Sheriff’s Office, and the Drug Enforcement Administration. Assistant United States Attorney Dena J. King represented the government.

RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, Chief United States District Judge James C. Dever III sentenced WILLIAM JACKSON HARVEY, JR, 53, of Virginia, to 96 months imprisonment to run concurrent with his  term of imprisonment previously imposed by the State of Virginia.  He was convicted by the State of Virginia for grand larceny and nonviolent felon in possession of a firearm within 10 years.

On March 23, 2015 HARVEY pleaded guilty to the federal charge of possession of a stolen firearm on July 4, 2013.

According to the investigation, on July 18, 2013, a report of stolen firearms was made by the store clerk of People’s Pawn Shop in Kinston when two guns were sold to them.  The store clerk advised officers that WILLIAM JACKSON HARVEY, JR. sold a New England .223 rifle and a .22 revolver, to the shop claiming that the guns were his father’s firearms.  The firearms were reported stolen along with a third gun, a Taurus .38 revolver, and a 2012 Ford F-250 on July 4, 2013 out of Hanover County, Virginia.  On July 23, 2013, HARVEY was arrested in Richmond, Virginia by the U.S. Marshals Service.  The truck and one of the three firearms were not recovered.

Investigation of this case was conducted by the Lenoir County Sheriff’s Office, Kinston Police Department and the Bureau of Alcohol Tobacco Firearms and Explosives.  Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.

RALEIGH - United States Attorney Thomas G. Walker announced that the Anti-Defamation League (ADL), one of the Nation’s premier civil rights agencies, awarded the Raleigh-Durham Joint Terrorism Task Force and a federal prosecutor at the U.S. Attorney’s Office in Raleigh, the 2015 ADL Service, Honor, Integrity, Excellence, Leadership, and Dedication (SHIELD) Award for the investigation and prosecution of Erwin Antonio Rios.  The award ceremony took place on October 13, 2015 in Washington, D.C.  Rios intended to commit violent acts against innocent people in furtherance of this extremist doctrine of hate.  He planned to wage violent jihad overseas and in the United States.

“This award encapsulates the idea that shared missions, attitudes, and dedication by prosecutors and investigative teams are harbingers of success, and most certainly worthy of recognition,” says USA Walker.  “We are honored by this prestigious recognition.”

The National Security Section of the U.S. Attorney’s Office handled this case and in this instance specifically included the efforts of Assistant U.S. Attorney Jason Kellhofer and Intelligence Research Specialist Sarah Foster. 

At the ceremony the ADL honored law enforcement heroes who have protected our nation and communities from hate crimes and terrorist threats.  The SHIELD award was created in 2010 to annually honor law enforcement for major successes in the fight against hate crimes and domestic and international terrorism.  The Award’s name reflects law enforcement’s role as protectors, and is also an acronym for the core values of the profession:  Service, Honor, Integrity, Excellence, Leadership, and Dedication.

Kellhofer and Foster, along with many other federal and local law enforcement agents, analysts, and attorneys assisted in the investigation of the case.  The award was given for their dedication and extraordinary competence in the investigation and successful prosecution of Erwin Antonio Rios of Fayetteville, North Carolina.

Rios is a self-proclaimed adherent to the extremist views propogated by extremist terrorist groups.  Rios desired to travel overseas in order to further what he termed “jihad” and expressly defined as various forms of violence against those he determined to be non-believers – to include U.S. forces.  In order to obtain the funds necessary for such travel, Rios devised a scheme to commit violent robberies within North Carolina.  He intended to leave no witnesses alive in order to better secure success.  As an initial step, Rios sought out a firearm and expressed willingness to purchase a stolen hand gun.  The FBI subsequently provided Rios with the opportunity to purchase a purportedly stolen hand gun through a confidential informant.  On February 7, 2013, Rios eagerly provided the funds for purchase of a weapon he believed to be stolen and was immediately taken into custody.  Rios subsequently plead guilty to knowing possession of a stolen firearm in violation of 18 U.S.C. § 922(j) and to having sought to accomplish the crime in order to further terrorist activity.   On October 8, 2013, in the Eastern District of North Carolina, Senior District Judge Howard sentenced Erwin Antonio Rios to ten years’ imprisonment followed by three years of supervised release.

RALEIGH – United States Attorney Thomas G. Walker announced that SANTIAGO DE LA TORRE, 45, of Joliet, Illinois, has been charged by a federal grand jury in a 17-count indictment with  Making False Statements Concerning Highway Projects and Aiding and Abetting; Aggravated Identity Theft and Aiding and Abetting; Conspiracy to Make False Statements Concerning Highway Projects; and Perjury.  Agents with the Federal Bureau of Investigation arrested DE LA TORRE in the Chicago area on October 21, 2015.

The indictment alleges that SANTIAGO DE LA TORRE and his brother, Joel De La Torre, residents of Illinois, opened a business called Delgado Elastomeric Bearings Corporation (DEBC).  Through DEBC, the defendant and his brother manufactured and sold elastomeric bridge bearings, which are effectively shock absorbers for bridges.  The defendant and his brother sold the bearings for use by multiple North Carolina highway contractors on numerous bridges in the state.

The indictment alleges that between 2009 and October of 2011, SANTIAGO DE LA TORRE and Joel De La Torre carried out a scheme to manufacture and sell bridge bearings on federal and state highway contracts in North Carolina and forged an application with the State of North Carolina to be able to supply bridge bearings on highway projects within the state.

The indictment further alleges that with each shipment of bridge bearings, SANTIAGO DE LA TORRE and his brother falsified various documents concerning the quality and testing of the bridge bearings.  The indictment alleges that the certifications were false and fraudulent for various reasons, including the fact that SANTIAGO DE LA TORRE and Joel De La Torre fabricated the test results listed in the certifications.

The indictment further alleges that federal and state construction contractors received and relied upon the false and fraudulent certifications. According to the North Carolina Department of Transportation and the Federal Highway Administration, there is no immediate safety concern arising from the defective bearings.  Nevertheless, the bearings will require replacement at a later date.  Costs associated with the replacement of the bearings are expected to exceed $5 Million due to the difficulty in removing the bearings from beneath existing structures, engineering costs, and traffic control.

If convicted, the maximum punishment for Making False Statements Concerning Highway Projects, Conspiracy to Make False Statements, and Perjury is up to five years in prison for each count, a $250,000.00 fine for each count, and 3 years of supervised release.  Conviction for Aggravated Identity Theft carries a penalty of not less than, nor more than 2 years imprisonment consecutive to any other sentence imposed, $250,000.00 fine and one year of supervised release.

An indictment is an allegation of a crime.  The defendant is presumed under the law to be innocent until proven guilty.  The defendant’s brother, Joel De La Torre, previously pleaded guilty on a related charge on April 16, 2015.

The investigation of this case was conducted by the Federal Bureau of Investigation and the United States Department of Transportation, Office of the Inspector General.  Assistant United States Attorney William M. Gilmore represents the United States.

ELIZABETH CITY – United States Attorney Thomas G. Walker announced that in federal court yesterday, United States District Judge Terrence W. Boyle sentenced KEITH MICHAEL JONES, 25, of Greenville, to 108 months imprisonment followed by 3 years of supervised release.  On July 15, 2015, JONES pleaded guilty to 2 counts of robbery of a business in interstate commerce and 1 count of robbery of a business in interstate commerce and aiding and abetting.

An investigation initiated by the Greenville Police Department, revealed that on August 10, 2014, KEITH MICHAEL JONES entered the Wilco Hess station located on South Memorial Drive in Greenville and robbed the store of currency and cigarettes.

On August 11, 2014, JONES entered the Kangaroo Express located on Southeast Greenville Boulevard and robbed the store of currency and cigarettes.

On August 13, 2014, JONES and an unknown suspect, entered and robbed the Kangaroo Express located on Queen Street in Grifton, North Carolina.  JONES took United States currency from the register.

That same evening, a detective who was conducting surveillance in Greenville due to the increasing number of armed robberies in the area, observed JONES hiding next to an abandoned building.

Investigation of this case was conducted by the Greenville Police Department, the Grifton Police Department, and the Bureau of Alcohol Tobacco Firearms and Explosives.  Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.

ELIZABETH CITY - United States Attorney Thomas G. Walker announced that in federal court on October 22, 2015, United States District Judge Terrence W. Boyle sentenced BRYANT FIGUEROA, 32, of Greenville, North Carolina, to 60 months in prison followed by 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 100 grams or more of heroin.  FIGUEROA previously pled guilty to this charge on July 15, 2015.

The Greenville Regional Drug Task Force used an informant to buy heroin from FIGUEROA on three occasions in October and November 2014.  The investigation revealed that between June 2014 and December 9, 2014, FIGUEROA and his co-conspirators were responsible for distributing approximately 125 grams of heroin in Pitt County, North Carolina.   

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.

ELIZABETH CITY – United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrance W. Boyle sentenced WILLIAM TOWNER AKERS, 46 of Raleigh, North Carolina, to 210 months followed by lifetime supervision and a $20,000 fine.

On July 15, 2015, AKERS pled guilty 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 January 5, 2014, a state search warrant was executed at Bailey Joe and Elizabeth Mills’ residence and several laptop computers, external hard drives and cellphones were seized.  A subsequent computer forensics examination of the seized items located several homemade videos taken by the Mills.  The Mills have previously pled guilty and been sentenced for Manufacturing Child Pornography.  The videos show AKERS sexually molesting an eight year old female in August 2013.  On March 10, 2015, a federal complaint charging “John Doe aka Peter Gilbert” with conspiracy to manufacture Child Pornography was obtained.  AKERS was later identified as the perpetrator and arrested on March 12, 2015 after several tipline callers identified him.  AKERS was the IT manager for a company located in Raleigh.

The criminal investigation of this case was conducted by the United States Immigration and Customs Enforcement’s Homeland Security Investigations – Raleigh, the Harnett County Sheriff’s Office, and the Raleigh 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.

WASHINGTON – The Department of Justice announced today that it has resolved a $237 million judgment against Tuomey Healthcare System for illegally billing the Medicare program for services referred by physicians with whom the hospital had improper financial relationships.  Under the terms of the settlement agreement, the United States will receive $72.4 million and Tuomey, based in Sumter, South Carolina, will be sold to Palmetto Health, a multi-hospital healthcare system based in Columbia, South Carolina.

“Secret sweetheart deals between hospitals and physicians, like the ones in this case, undermine patient confidence and drive up healthcare costs for everybody, including the Medicare program and its beneficiaries,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “This case demonstrates the United States’ commitment to ensuring that doctors who refer Medicare beneficiaries to hospitals for procedures, tests and other health services do so only because they believe the service is in the patient’s best interest, and not because the physician stands to gain financially from the referral.  The Department of Justice is determined to prevent the kind of abuses uncovered in this case, and we are willing to take such cases to trial to protect the integrity of the Medicare program.”

The judgment against Tuomey related to violations of the Stark Law, a statute that prohibits hospitals from billing Medicare for certain services (including inpatient and outpatient hospital care) that have been referred by physicians with whom the hospital has an improper financial relationship.  The Stark Law includes exceptions for many common hospital-physician arrangements, but generally requires that any payments that a hospital makes to a referring physician be at fair market value for the physician’s actual services, and not take into account the volume or value of the physician’s referrals to the hospital.

The government argued in this case that Tuomey, fearing that it could lose lucrative outpatient procedure referrals to a new freestanding surgery center, entered into contracts with 19 specialist physicians that required the physicians to refer their outpatient procedures to Tuomey and, in exchange, paid them compensation that far exceeded fair market value and included part of the money Tuomey received from Medicare for the referred procedures.  The government argued that Tuomey ignored and suppressed warnings from one of its attorneys that the physician contracts were “risky” and raised “red flags.”

On May 8, 2013, after a month-long trial, a South Carolina jury determined that the contracts violated the Stark Law.  The jury also concluded that Tuomey had filed more than 21,000 false claims with Medicare.  On Oct. 2, 2013, the trial court entered a judgment under the False Claims Act in favor of the United States for more than $237 million.  The United States Court of Appeals for the Fourth Circuit affirmed the judgment on July 2, 2015. 

“This case reinforces the need for hospitals to abide by the requirements of the Stark Law,” said U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina.

The case arose from a lawsuit filed on Oct. 4, 2005, by Dr. Michael K. Drakeford, an orthopedic surgeon who was offered, but refused to sign, one of the illegal contracts.  The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery.  The act allows the government to intervene and take over the action, as it did in this case.  Dr. Drakeford will receive approximately $18.1 million under the settlement.

“The type of abusive compensation arrangements at issue in this case is precisely what the physician self-referral law was designed to prevent,” said Inspector General Dan Levinson of of the Department of Health and Human Services-Office of the Inspector General (HHS-OIG).  “Patients need and deserve to know that the hospital services they receive are the product of sound medical judgment, rather than motivated by the physician’s financial interests.  The extensive litigation and settlement in this case should send a signal to the hospital industry that these tainted financial relationships simply will not be tolerated.”

As part of the settlement announced today, Toumey will be required to retain an independent review organization to monitor any arrangements it makes with physicians or other sources of referrals for the duration of the five-year Corporate Integrity Agreement.

This case illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $25.3 billion through False Claims Act cases, with more than $16.1 billion of that amount recovered in cases involving fraud against federal health care programs.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, including the conduct described in the opinions of the trial and appellate courts in this case, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).

The judgment and resolution of the case were the result of a coordinated effort by the Civil Division’s Commercial Litigation branch, the U.S. Attorney’s Office of the Eastern District of North Carolina and HHS-OIG.    

The case is captioned United States ex rel. Drakeford v. Tuomey Healthcare System, Inc., Case No. 3:05-cv-02858 (MBS) (D.S.C.).

GREENVILLE – United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge Malcolm J. Howard sentenced David Devonne Battiste, 42, of Greenville to 327 months imprisonment, followed by 5 years of supervised release.

David Devonne Battiste was named in an Indictment filed on September 11, 2014 charging him with Carjacking, Use of a firearm in furtherance of a crime of violence and Possession of a firearm by a convicted felon.  On April 7, 2015, Battiste pled guilty to Carjacking and use of a firearm during the commission of a crime of violence.

According to the investigation, on July 15, 2013, officers with the Greenville Police Department were dispatched to a report of a robbery at 413 West 5th Street in Greenville, N.C.  Upon arrival, officers made contact with two victims who indicated that they were robbed at gunpoint by two males who demanded the keys to their vehicle and drove away.  The victims indicated that as they sat in the vehicle, two suspects approached the driver’s side door.  The first suspect, later identified as BATTISTE, tapped on the driver’s side door with a silver hand-gun and demanded that the driver open the door.  The driver was forcefully removed from the vehicle, and his wallet and cash removed from his pockets.  The passenger was then also ordered out of the vehicle, and when he refused, BATTISTE pointed the handgun at him and pulled the trigger. The weapon initially misfired, however; BATTISTE pulled the trigger a second time and a bullet shattered the passenger side window near the victim’s head.  The second victim exited the vehicle and was also robbed. The suspects forced the victims to lie in the grass, entered the truck and drove out of the parking lot.       The victims were able to give a description of the suspect with the firearm and BATTISTE was located shortly thereafter near where the stolen vehicle was located. A firearm was located in BATTISTE’S right front pocket, as well as the keys to the stolen vehicle and a bracelet matching one that was stolen from one of the victims.  Officers also located two shell casings, one that still contained a bullet but had a primer mark (indicating a misfire) and one empty casing.        

Investigation of this case was conducted by the Greenville Police Department along with the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant United States Attorney Carrie Randa represented the government.

Raleigh – United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever sentenced ANDREW STEPHEN LAZETERA, 28, of Cary to 240 months imprisonment followed by 15 years of supervised release.

     On June 25, 2015, LAZETERA pled guilty to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2).

According to public information, in October, 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 LAZETERA.

On October 31, 2014, a search warrant was executed at LAZETERA’s residence.  An initial onsite preview revealed the presence of child pornography on LAZETERA’S computer.  LAZETERA  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 3,400 images of child pornography.

The criminal investigation of this case was conducted by the Cary Police Department and the North Carolina State Bureau of Investigation.  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 – United States Attorney Thomas G. Walker announced that in federal court, Senior United States District Judge W. Earl Britt sentenced ADREAN LAMONT JONES, 29, of Wilmington, to 90 months imprisonment followed by 5 years of supervised release.  On June 1, 2015 JONES pleaded guilty to possession with intent to distribute a quantity of Phencyclidine (PCP) and possession of a firearm in furtherance of a drug trafficking crime on June 3, 2014.

According to the investigation, a deputy with the Duplin County Sheriff’s Office attempted to make a traffic stop after observing a vehicle on I-40 operated by JONES swerving back and forth across the center line.  After deputies successfully forced JONES to stop, JONES refused to exit his vehicle.  It was later revealed that JONES was under the influence of phencyclidine (PCP), a Schedule II controlled substance.  In the vehicle, law enforcement located a loaded handgun and PCP.

 Investigation of this case was conducted by the Duplin County Sheriff’s Office, the North Carolina State Highway Patrol, and the Bureau of Alcohol Tobacco Firearms and Explosives.  Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.

One current and three former U.S. Army soldiers were sentenced today in federal court in Raleigh, North Carolina, for their involvement in a bribery scheme in Afghanistan that resulted in the theft of fuel valued at more than $10 million.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina, Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service (DCIS) Southeast Field Office, Special Agent in Charge John A. Strong of the FBI’s Charlotte Division, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (Army CID) Major Procurement Fraud Unit and Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.

Each defendant previously pleaded guilty to one count of conspiracy and one count of bribery.  U.S. District Court Judge Terrence W. Boyle of the Eastern District of North Carolina imposed the following sentences:

• Jeffery B. Edmondson, 38, of Fayetteville, North Carolina, was the senior enlisted member of the unit who supervised all of his co-conspirators, and was sentenced to eight years in prison.

• Christopher Ciampa, 33, of Lillington, North Carolina, was sentenced to 10 years in prison.

• Enmanual Lugo, 32, of Ocean Township, New Jersey, was sentenced to four years in prison.

• Geoffrey Montague, 39, of Fayetteville, North Carolina, was a senior enlisted member of the unit who reported to Edmondson, and was sentenced to five years in prison.

In 2011, Edmondson, Ciampa, Lugo and Montague were U.S. Army soldiers serving with the 3rd Special Forces Group Service Detachment deployed to Kandahar Air Field in Afghanistan.  During the deployment, the defendants were responsible for managing Transportation Movement Requests (TMRs) for fuel and other items in support of military units in Afghanistan paid for by the U.S. government.

In connection with their guilty pleas, the defendants admitted to submitting fake TMRs for thousands of gallons of fuel that were neither necessary nor used by military units.  The defendants admitted that, in return for cash bribe payments, they awarded all of the TMRs to the same Afghan trucking company, which used the fake TMRs to download fuel from depots on Kandahar Air Field and then sold the fuel on the black market. 

The defendants admitted that they sent some of the illicit proceeds to the Unites States via wire transfer or hidden in personal items, and transported cash back to the United States either on their persons or in their luggage.  In addition, Edmondson and Ciampa admitted to using the funds to purchase automobiles.

According to the plea agreements, the scheme caused losses to the United States of over $10 million.

The case was investigated by the DCIS, FBI, Army CID and SIGAR.  The case was prosecuted by Trial Attorney Wade Weems of the Criminal Division’s Fraud Section, on detail from SIGAR, and Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina.

RALEIGH – One current and three former U.S. Army soldiers were sentenced today in federal court in Raleigh, North Carolina for their involvement in a bribery scheme in Afghanistan that resulted in the theft of fuel valued at more than $10 million.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Thomas G. Walker for the Eastern District of North Carolina, Special Agent in Charge John F. Khin of the Defense Criminal Investigative Service (DCIS) Southeast Field Office, Special Agent in Charge John A. Strong of the FBI’s Charlotte Division, Director Frank Robey of the U.S. Army Criminal Investigation Command’s (Army CID) Major Procurement Fraud Unit and Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko made the announcement.

Each defendant previously pleaded guilty to one count of conspiracy to commit offense against the United States and one count of bribery.  U.S. District Court Judge Terrence W. Boyle of the Eastern District of North Carolina imposed the following sentences:

• Jeffery B. Edmondson, 38, of Fayetteville, North Carolina, was the senior enlisted member of the unit who supervised all of his co-conspirators, and was sentenced to 8 years in prison.

• Christopher Ciampa, 33, of Lillington, North Carolina, was sentenced to 10 years in prison.

• Enmanual Lugo, 32, of Ocean Township, New Jersey, was sentenced to 4 years in prison. 

• Geoffrey Montague, 39, of Fayetteville, North Carolina, was a senior enlisted member of the unit who reported to Edmondson, and was sentenced to 5 years in prison.

"These men were trusted to provide their fellow soldiers with the resources needed to successfully complete our mission in Afghanistan.  Instead, they chose to personally profit from selling stolen fuel valued at millions of dollars.  These federal sentences should reassure the public that the FBI and our law enforcement partners will not tolerate the theft of government resources intended to protect our servicemen and women overseas," said John Strong, Special Agent in Charge of the FBI in North Carolina.

“John F. Sopko, the Special Inspector General for Afghanistan Reconstruction stated, “The vast majority of the men and women of our armed forces possess the integrity and trust that the United States has learned to expect.  There is a small percentage that betrays that trust.  Sadly, these four represent that small percentage."

"Defense Criminal Investigative Service (DCIS), with our investigative partners, continues to aggressively pursue those who deprive the Department of Defense of much needed resources, such as fuel, critical to accomplishing its global missions," said DCIS Special Agent in Charge Khin.  "Corruption and theft in a combat environment, especially on such a large scale, degrade the effectiveness of the U.S. armed forces, and increases the danger to our warfighters by diverting those resources to our enemies.”

"This sentencing demonstrates our firm commitment to hold accountable those who commit fraud, receive kickbacks or otherwise steal from our government, in or out of uniform," said Frank Robey, director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit.   "Special agents from our Major Procurement Fraud Unit, along with those from other federal law enforcement agencies, are unwavering in our commitment to seek out and hold responsible all those who conduct criminal activity against the United States Army and the American taxpayer."

In 2011, Edmondson, Montague, Ciampa and Lugo were U.S. Army soldiers serving with the 3rd Special Forces Group Service Detachment deployed to Kandahar Air Field in Afghanistan.  During the deployment, the defendants were responsible for managing Transportation Movement Requests (TMRs) for fuel and other items in support of military units in Afghanistan paid for by the U.S. government.

In connection with their guilty pleas, the defendants admitted to submitting fake TMRs for thousands of gallons of fuel that were neither necessary nor used by military units.  The defendants admitted that, in return for cash bribe payments; they awarded all of the TMRs to the same Afghan trucking company, which used the fake TMRs to download fuel from depots on Kandahar Air Field and then sold the fuel on the black market.

The defendants admitted that they sent some of the illicit proceeds to the U.S. via wire transfer or hidden in personal items, and transported cash back to the U.S. either on their persons or in their luggage.  In addition, Edmondson and Ciampa admitted to using the funds to purchase automobiles.

According to the plea agreements, the scheme caused losses to the U.S. of over $10 million.

The case was investigated by the DCIS, FBI, Army CID and SIGAR.  The case was prosecuted by Trial Attorney Wade Weems of the Criminal Division’s Fraud Section, on detail from SIGAR, and Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina.

WILMINGTON – United States Attorney Thomas G. Walker announced today in federal court, Senior United States District Judge James C. Fox sentenced ROBERT EARL MAYS, 58, from the District of Columbia, to 125 months imprisonment followed by 3 years of supervised release.  On July 6, 2015 a federal jury convicted MAYS and PARIS CORDAVA WILLIAMS 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. WILLIAMS and FRANKS are scheduled for sentencing for the November 2, 2015, term of court.

According to the investigation, MAYS, WILLIAMS, 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 FRANKS and WILLIAMS 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.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Terrence W. Boyle sentenced ROBERT WARREN GREEN, 46, of Wade, North Carolina, to 10 months of imprisonment and 1 year of supervised release.  The Court further ordered GREEN to pay $45,000.00 in restitution and the forfeiture of criminal proceeds in the same amount.

On April 27, 2015, GREEN pled guilty to demanding, seeking, and receiving gratuities.

     According to the Criminal Information and information in the public record, between January, 2008 and April, 2009, while deployed to Afghanistan, Sergeant First Class GREEN was assigned to a Movement Control Team (MCT) and responsible for logistics and transportation, including the administration of Transportation Movement Requests (TMRs).  TMRs are the means by which a military unit in the field submits a request for logistics support and the transport of military items from one location to another across Afghanistan, including food, fuel, equipment, and other supplies.

     Beginning sometime in January 2008, Green sought and received $45,000 in cash from an Afghan national who was, at the time, the owner of an Afghan trucking company, and who was seeking contracts through the TMR process.  In exchange for the $45,000, Green facilitated the award of TMRs to that Afghan trucking company.  In fact, Green caused to be awarded at least 40 TMRs worth approximately $3 million to that company.

“It is especially disappointing when a service member violates the position he is entrusted with by putting his profit above his mission.  The FBI and our investigative partners will work tirelessly to bring those to justice who misuse government resources designated to benefit those who sacrifice for our country,” said John Strong, Special Agent in Charge of the FBI in North Carolina. 

John F. Sopko, the Special Inspector General for Afghanistan Reconstruction stated, "The vast majority of the men and women of our armed forces possess the integrity and trust that the United States has learned to expect. There is a small percentage that betrays that trust. Sadly, Green represents that small percentage."

“Defense Criminal Investigative Service (DCIS) Special Agent in Charge John F. Khin, Southeast Field Office, commented, "It is disheartening when a military member abandons his code of conduct and violates a position of trust for personal enrichment.  The DCIS investigates fraud and corruption that undermines the integrity of the Department of Defense.  We continue to aggressively investigate violators to preserve precious American taxpayer dollars and better support our Warfighters serving honorably and selflessly in Southwest Asia."

"We will not tolerate this type of criminal behavior in our ranks - period, " said Frank Robey, the director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit.  "We will continue to aggressively pursue those who attempt to steal, commit bribery, or receive kickbacks while employed by the U.S. Army and the U.S. Government."

The case was investigated by the Defense Criminal Investigation Service (DCIS), Army Criminal Investigation Command (CID), 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 DOJ Criminal Fraud Section Trial Attorney Wade Weems, on detail from SIGAR.

RALEIGH - U.S. Attorney Thomas G. Walker announced that a federal grand jury in Raleigh, North Carolina, indicted DEBORAH CARR BATTLE, of Goldsboro, North Carolina, in a three count indictment charging theft of government monies, obstruction of agency proceedings, and falsification of documents in connection with a federal investigation.

BATTLE is a tailor who owns and operates a store called Lydia’s Alterations near the Seymour Johnson Air Force Base in Goldsboro, North Carolina.  The United States Air Force 4th Mission Support Group utilized BATTLE as a vendor to undertake sewing and tailoring work on the uniforms of airmen who were to be deployed overseas in connection with Operation Enduring Freedom (OEF). 

The indictment alleges that, over the course of two years, BATTLE made dozens of unauthorized charges using two different government purchase cards, in increments of $2,999.99 or less.

See the attached indictment. 150923_battle_indictment.pdf (438.62 KB)

If convicted of all charges BATTLE faces a maximum fine of $250,000.00 on each count, and a sentence of 10 years of imprisonment on count one, theft of government monies, 5 years imprisonment on count two, obstruction of agency proceedings, and 20 years on count three, falsification of documents in connection with a federal investigation.   

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

Investigation of this case was conducted by the Air Force Office of Special Investigations (AFOSI).  Assistant United States Attorney Evan Rikhye is prosecuting the case for the government.

RALEIGH – Today, U.S. Attorney Thomas G. Walker announced the Office of Community Oriented Policing Services (COPS Office) funding awards to 3 agencies in the Eastern District of North Carolina, aimed at creating, and in some cases protecting, 9 law enforcement positions.  Over $107 million will be awarded nationally, through the COPS Hiring Program (CHP), including $1,075,523 for the Eastern District.

The agency names, award amount, and number of positions are:

Elizabeth City Police Department, $120,074 - 1 position

Greenville Police Department, $500,000 - 4 positions

Lumberton Police Department, $455,449 - 4 positions

“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “These grants are not simply about putting more officers on the street, they are about expanding the capacity of law enforcement agencies to engage in community policing.”

CHP provides grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers.  The program provides salaries and benefits for officer and deputy hires for three years.

Priority consideration was given this year to agencies that selected any of the Building Trust focus areas or School Based Policing through School Resource Officers.  All applicants were encouraged to refer to the report of the President's Task Force on 21st Century Policing for suggested actions to incorporate into their proposed community policing strategy.

The COPS Office is a federal agency responsible for advancing community policing nationwide.  Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.

For the entire list of grantees and additional information about the 2015 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.

NEW BERN - United States Attorney Thomas G. Walker announces that fifteen individuals were sentenced for their involvement in an international cocaine trafficking organization.  All 16 were part of the same drug trafficking organization operating in the Elizabethtown and Bladen County area. The organization was importing the cocaine from Jamaica for distribution.

The following individuals were indicted on February 11, 2014.  Count 1 charged conspiracy to distribute and possess with intent to distribute 5 kilograms or more of cocaine from September 2008 to February 11, 2014.  Count 2 charged conspiracy to import 5 kilograms or more of cocaine into the United States from September 2008 to February 11, 2014 and Count 3 charged distribution of a quantity of cocaine on April 24, 2013. All pleaded guilty and were sentenced to the following.  The count of the indictment they pleaded to is annotated as well.

• Shawn Melvin, a/k/a “Gutta” 41, of Elizabethtown, NC – Count 1, 190 months & 5 years supervised release
• Veronica Kemp, 43, of Elizabethtown, NC – Count 1, 120 months & 5 years supervised release
• Alicia McCoy, 25, of Lumberton, NC – Count 1, 24 months & 2 years supervised release
• Jonathan Shipman, 35, of Elizabethtown, NC – Count 3, 108 months & 3 years supervised release

The following individuals were indicted on May 27, 2014.  Count 1 charged each with conspiracy to distribute cocaine from January 2004 to May 27, 2014.  Count 2 charged each with conspiracy to import cocaine from January 2004 to May 27, 2014. Each was later sentenced to the following terms of incarceration:

• Clayton Leslie, a/k/a “Tyrone Gordon” and “Jamaica”, 37, of Elizabethtown, NC – Count 1, 120 months & 5 years supervised release
• Don Smith, 32, of Elizabethtown, NC – Count 1, 22 months & 2 years supervised release
• Felicia Smith, 39, of Clarkton, NC – Count 1, 18 months & 3 years supervised release
• Terri Smith, a/k/a “Bit Bit”, 31, of Clarkton, NC – Count 1, 5 months & 3 years supervised release
• Levi McGowan, 44, of Columbus, OH – Case transferred to Southern District of Ohio, where the defendant received a sentence of 27 months & 3 years supervised release
• Turkesa Lesane, 35, of Elizabethtown, NC – Count 1, 4 months & 3 years supervised release
• Lawrence Roberson, 49, of Fayetteville, NC – Count 1, 30 months & 4 years supervised release
• Grant McCoy, 31, of Clarkton, NC – Count 1, 30 months & 5 years supervised release
• Kevisha Brown, 25, of , NC – Count 1, 32 months & 3 years supervised release
• Antonio Williams, 45, of Poughkeepsie, NY – Count 1, 141 months & 5 years supervised release
• Michael Ellison, 45, of Bronx, NY – Count 1, 56 months & 4 years supervised release

The following individual pleaded guilty to use of a communication facility in committing or in causing or facilitating a drug trafficking offense; aiding and abetting:

• David McLaughlin, 43, of Orlando, FL – 96 months & 1 year supervised release

In 2011, the United States Department of Homeland Security established the existence of a drug trafficking organization that smuggled cocaine into the United States from several Caribbean islands, including Jamaica, Curacao, and Trinidad. The organization, based in Bladen County, North Carolina, was formed in 2004 by Tyrone Gordon, Shawn Melvin, and Melvin’s wife, Veronica Kemp.

The organization was primarily supplied cocaine by unindicted Jamaican nationals and they recruited Alicia McCoy, Don Smith, Felicia Smith, Terri Smith, Levi McGowan, Turkesa Lesane, David McLaughlin, Lawrence Roberson, Grant McKoy, Kevisha Brown, Antonio Williams, and Michael Ellison to travel to the Caribbean islands to ingest or conceal pelletized cocaine in their body cavities or undergarments.  The couriers smuggled the cocaine into the United States via several airports, including those in Charlotte, North Carolina; Miami, Florida; New York, New York; Atlanta, Georgia; Chicago, Illinois; Fort Lauderdale, Florida; and Memphis, Tennessee.  These couriers made a total of 52 international flights for the organization.  When the couriers returned to the United States, they regurgitated or passed the cocaine pellets and gave them to Melvin, Kemp, and/or Gordon for distribution.  On occasion, some of the couriers were utilized to wire money overseas to individuals for cocaine purchases prior to the couriers’ travels.  Melvin provided some of the cocaine to Jonathan Shipman, a drug dealer and high-level member of the United Blood Nation street gang in Bladen County.  Investigation ultimately revealed that the organization illegally imported more than 11.5 kilograms of cocaine into the United States between 2004 and 2014.

The case was investigated by The Department of Homeland Security-Homeland Security Investigations, Office of the Resident Agent in Charge, Charlotte, NC; US Customs and Border Protection, Bladen County Sheriff’s Office, North Carolina Department of Public Safety-Division of Alcohol Law Enforcement, North Carolina Highway Patrol, North Carolina Department of Motor Vehicles-License and Theft Bureau, Maryland State Police, Elizabethtown Police Department, and the NC State Bureau of Investigation.  Assistant U.S. Attorney Jennifer Wells prosecuted the case for the government.

RALEIGH – United States Attorney Thomas G. Walker announced today that local community agencies that assist crime victims will benefit from $60,012,054 that has been awarded to the State of North Carolina by the U.S. Department of Justice’s Office of Victims of Crime (OVC).

The North Carolina Department of Public Safety’s Governor’s Crime Commission will distribute these funds to domestic violence shelters, rape crisis centers, and other local agencies to provide services to victims, such as crisis intervention, counseling, emergency shelter, and criminal justice advocacy.

U.S. Attorney Walker said, “This program can make a tremendous difference for crime victims and their families, and it is especially satisfying to know that the support they receive is funded not by the taxpayers but by the offenders themselves.”

Additionally, on July 31, the state’s Victim Compensation section received an annual grant of $3,558,000.  OVC provides financial assistance to each state’s crime victim compensation program that equals 60 percent of what the program spends in state money annually.  These supplemental funds help crime victims every day by paying for the costs of medical care, mental health counseling, lost time at work, as well as funerals and other expenses that families face in the aftermath of a homicide.

These combined federal awards, totaling $63,570,054, represent the federal government’s efforts to insure that much needed assistance is provided to innocent crime victims, and has resulted in a true federal-state partnership to aid victims.

These awards come from the Crime Victims Fund, which was established by the Victims of Crime Act of 1984 (VOCA), as amended.  Criminal fines collected by U.S. Attorneys, the U.S. Courts, and the Bureau of Prisons are deposited into the Crime Victims Fund, which is administered by OVC.  The Fund supports these annual victim assistance awards to all 50 states, the District of Columbia, and the territories.  Fines collected in one year are available for grant awards the following year.

The federal victim assistance grant program is designed to supplement state victim assistance programs.  OVC awards the annual grants to state agencies selected by governors, which sub-grant the federal dollars to local community agencies that assist crime victims.

For more information about North Carolina’s victim assistance program, visit the Governor’s Crime Commission website at https://www.ncdps.gov/index2.cfm?a=000003%2C000011

or by telephone at 919-733-4564.  Information about OVC and its programs is available at http://ojp.gov/ovc/ or by calling 202-307-5983.

GREENVILLE – United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge Malcolm J. Howard sentenced Markeith DEVON WILSON, 27, of Greenville, North Carolina, to 121 months imprisonment, followed by 5 years of supervised release and restitution.

WILSON was named in an Indictment filed on November 12, 2014, charging him with possession of a firearm by a felon, robbery affecting interstate commerce, and brandishing a firearm during the robbery.  On  January 6, 2015, WILSON pled guilty to the robbery and brandishing a firearm charges.

According to the investigation, on January 31, 2014, WILSON robbed employees of Popeye’s Chicken in Greenville, North Carolina.  WILSON, armed with a shotgun, approached an employee taking the trash out of the business.  As the employee re-entered the store, WILSON forced his way in and pointed the shotgun at the manager.  WILSON pulled the trigger but the shotgun failed to discharge.  WILSON stole $400 in cash from the business.  When law enforcement arrived, the manager advised officers that the suspect had recently been in the business.  The manager recognized the suspect, who was missing a front tooth and had a distinctive stutter.  WILSON was subsequently identified in a line-up

Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenville Police Department.  Assistant United States Attorney Rudy E. Renfer represented the government.

A former information technology manager pleaded guilty today to sending damaging computer code to servers at his former employer, a software company, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division.

Nikhil Nilesh Shah, 33, of Union, New Jersey, pleaded guilty before U.S. Magistrate Judge Robert T. Numbers II of the Eastern District of North Carolina, to one felony count of causing the transmission of computer code and, as a result, damaging computers and causing loss of at least $5,000 in value.  Shah is scheduled to be sentenced in Dec. 8, 2015.

According to the indictment, from 2007 to March 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 subsequently left Smart Online to work for another technology company.  According to facts presented to the court in connection with his plea agreement, on June 28, 2012, Shah sent malicious computer code to Smart Online’s computer servers in Durham and Raleigh, North Carolina, causing at least $5,000 in damage and deleting much of Smart Online’s intellectual property.

The case was investigated by the FBI’s Raleigh, North Carolina, Field Office.  The case is being prosecuted by Senior Trial Attorney Richard D. Green of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Thomas B. Murphy and Adam Hulbig of the U.S. Attorney’s Office of the Eastern District of North Carolina.

WASHINGTON – A former information technology manager pleaded guilty today to sending damaging computer code to servers at his former employer, a software company, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina and Special Agent in Charge John A. Strong of the FBI’s Charlotte, North Carolina, Division.

Nikhil Nilesh Shah, 33, of Union, New Jersey, pleaded guilty before U.S. Magistrate Judge Robert T. Numbers II of the Eastern District of North Carolina, to one felony count of causing the transmission of computer code and, as a result, damaging computers and causing loss of at least $5,000 in value.  Shah is scheduled to be sentenced on December 8, 2015. 

According to the indictment, from 2007 to March 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 subsequently left Smart Online to work for another technology company.  According to facts presented to the court in connection with his plea agreement, on June 28, 2012, Shah sent malicious computer code to Smart Online’s computer servers in Durham and Raleigh, North Carolina, causing at least $5,000 in damage and deleting much of Smart Online’s intellectual property.

The case was investigated by the FBI’s Raleigh, North Carolina, Field Office.  The case is being prosecuted by Senior Trial Attorney Richard D. Green of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Thomas B. Murphy and Adam Hulbig of the U.S. Attorney’s Office of the Eastern District of North Carolina.

GREENVILLE – United States Attorney Thomas G. Walker announced today that a jury convicted DONALD JEROME PARKER, also known as “DP”, 27, of Rocky Mount, North Carolina, of two counts of distributing a quantity of cocaine base (crack) and two counts of distributing 28 grams or more of cocaine base (crack).  The jury returned its verdict following a trial in federal court before Senior United States District Judge Malcolm J. Howard.

PARKER was named in a Superseding Indictment on August 4, 2015.  He was originally indicted on March 3, 2015.  The defendant was the target of an investigation which was a collaborative effort among several law enforcement agencies, to include the Nash County Sheriff’s Office, Rocky Mount Police Department, and the Drug Enforcement Administration.

At trial, the Government presented evidence that on five separate instances PARKER sold over 189 grams of crack cocaine to a confidential informant between March 5, 2013 and March 11, 2013 in Rocky Mount, North Carolina.  In addition to being visible on videos selling crack cocaine, during one of the controlled buys PARKER could also be heard cooking crack cocaine in the presence of the confidential informant.

At sentencing, PARKER faces a maximum of 40 years imprisonment followed by 4 years of supervised release.

The case was investigated by the Drug Enforcement Administration, Nash County Sheriff’s Office and the Rocky Mount Police Department and prosecuted by Assistant U.S. Attorneys Dena J. King and Dennis Duffy.

RALEIGH - United States Attorney Thomas G. Walker announces that on August 19, 2015, a federal grand jury in Raleigh returned a four count Indictment against two former Correctional Officers that worked at Polk Correctional Institution (“Polk”) in Butner, North Carolina.

The Indictment charges GREGORY DUSTIN GOULDMAN, 31 and JASON DEAN, 29, each with one count of Extortion Under Color of Official Right, 18 U.S.C. § 1951.  Additionally, DEAN was charged with one count of making a False Statement to the Federal Bureau of Investigation, 18 U.S.C § 1001, and one count of lying before a federal Grand Jury, 18 U.S.C. § 1623.

U.S. Attorney Walker stated, “Corruption by correction officers undermines the criminal justice system and puts the general public at risk.  We will always prosecute these kinds of cases to maintain the integrity of our system.”

GOULDMAN was employed as a Correctional Officer at Polk from 2005, through May of 2015.  From 2012, through September of 2014, GOULDMAN held the position of Sergeant and worked as a supervisor in Polk’s “high security maximum control unit” (hereinafter “HCON”).  The HCON unit was opened in 1998 to serve as North Carolina’s supermax prison for “the state’s most violent and assaultive offenders.”  The indictment alleges that GOULDMAN engaged in a scheme with a number of prisoners held in HCON under which he smuggled tobacco, marijuana, cellular telephones, and packages of AA batteries (often used to fashion a device for charging the cellular telephones) to such inmates in exchange for cash.  The cellular telephones were used by the inmates to communicate with persons outside of prison.  It is further alleged that, after being transferred out of HCON in September of 2014, GOULDMAN continued to smuggle contraband into Polk for at least one additional inmate.

DEAN is alleged to have misused his position as a Correction Officer to extort things of value from inmates.  DEAN is also alleged to have lied as to a material fact during an interview with FBI Agents and to have committed perjury while testifying before a federal Grand Jury.

The United States Attorney’s Office and FBI’s investigation into Polk was prompted by the circumstances relating to the kidnapping conspiracy alleged to have been orchestrated by defendant Kelvin Melton through the use of a cellular telephone in his cell in HCON.

"These men put many lives at risk for their own profit.  They were entrusted with the responsibility of ensuring that North Carolina's convicted criminals serve their sentences.  Instead, this type of conduct made it possible for a dangerous gang member to reach outside of prison walls which lead to the kidnapping of Mr. Frank Janssen.  The FBI will keep pursuing this case and will not stop until everyone who played a role in this ruthless crime is held accountable," said John Strong, Special Agent in Charge of the FBI.   

Polk is operated under the purview of the North Carolina Department of Public Safety (“DPS”).  DPS Secretary Frank L. Perry said: "The department has participated in and cooperated with this investigation and we strongly support this prosecution in this very serious case to the fullest extent of the law.  DPS has so many professional and dedicated employees who serve the state in this very challenging and dangerous environment and it is truly regrettable when a corrupt staff member puts their co-workers and the public at risk."

If convicted of Extortion Under Color of Official Rights both defendants face maximum imprisonment of 20 years and a fine of $250,000.  In addition, DEAN faces a maximum of 5 years imprisonment if convicted of making a False Statement and a fine of $250,000 and 5 years imprisonment if convicted of Perjury and a fine of $250,000.

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 and prosecuted by Assistant U.S. Attorneys Dennis Duffy and Leslie Cooley.

RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today before Chief United States District Judge James C. Dever, III, HOWARD GOLDSMITH, 41, of Raleigh, was sentenced to a 30 month term of imprisonment, and followed by 3 years of supervised release, on a charge of Conspiracy to Commit Wire and Bank Fraud.  GOLDSMITH was also ordered to pay $808,025 in restitution and to forfeit $1,050,400.50 and 9 properties located in Wake and Durham counties.

Count One of the Criminal Information charged that between August of 2006 and February of 2009, GOLDSMITH and his conspirators carried out a fraud upon various banks and lenders using entities GOLDSMITH owned or controlled, including Ganyard Farm Construction and Baldwin Estates.  After developing various properties through Ganyard Farm Construction and Baldwin Estates, GOLDSMITH and others fraudulently supplied down payment funds to unqualified buyers on numerous loans.  The fraudulent down payments were not identified on the HUD-1 Settlement Statements that were supplied to the lenders at the time of closing.  GOLDSMITH and others also paid kickbacks to various individuals who assisted in orchestrating the transactions.

Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation, the Federal Bureau of Investigation, and the United States Department of Housing and Urban Development Office of the Inspector General, with the assistance of the Raleigh Police Department.  Assistant United States Attorney William M. Gilmore represented the United States.

NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Terrence W. Boyle sentenced TRAVIS JERMAINE PITTMAN, 31, of Greenville, North Carolina, to 72 months in prison and 3 years of supervised release for possession of firearm by a convicted felon.  PITTMAN previously pled guilty to this charge on May 11, 2015.   

The Greenville Police Department arrested PITTMAN on February 21, 2015, during an investigation into a domestic assault at an apartment at 600 Glendale Court, Greenville, N.C.  The arresting officer found an unloaded .25 caliber pistol in PITTMAN’S back pocket during the investigation.  The victim of the assault told the officer that PITTMAN hit her in the head and spit on her while she was holding their 10 day old son.  She also reported that PITTMAN pressed the barrel of a gun against her head and threatened to kill her.

PITTMAN is prohibited from possessing a firearm due to his prior felony convictions for assault with a deadly weapon with the intent to kill and aiding and abetting the discharge of a weapon into occupied property.

The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Greenville Police Department.  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.

NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flanagan sentenced LESLIE FAVIOLA-ALVARADO, 22, of Lawrenceville, Georgia, to 56 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 500 grams or more of methamphetamine.  FAVIOLA-ALVARADO previously pled guilty to this charge on May 13, 2015.  On June 9, 2015, Judge Flanagan sentenced FAVIOLA-ALVARADO’S co-defendant, FELIPE DE JESUS JARAMILLO-ROSAS, 29, of Gwinnett County, Georgia, to 56 months in prison and 5 years of supervised release.

     The investigation revealed that on June 25, 2013, JARAMILLO-ROSAS and FAVIOLA-ALVARADO took possession of 907 grams of methamphetamine from a source of supply in the Atlanta, Georgia, area and began driving to Johnston County, N.C., to deliver the methamphetamine to drug traffickers.  JARAMILLO-ROSAS and FAVIOLA-ALVARADO arrived in Johnston County on June 26, 2013.  However, the drug traffickers decided not to accept the methamphetamine.  As JARAMILLO-ROSAS and FAVIOLA-ALVARADO were attempting to deliver the methamphetamine back to the suppliers in Atlanta, the North Carolina Highway Patrol stopped their car in Graham, N.C.  The trooper discovered that the driver, JARAMILLO-ROSAS, did not have a valid driver’s license and smelled a strong odor of marijuana from the car.  The trooper asked for and received consent to search the car.  Troopers located the methamphetamine in two plastic containers in the back seat of the car during the consent search.

     This case was part of the Organized Crime Drug Enforcement Task Force (OCDETF) Operation “Smokin’ Aces”.  Operation “Smokin’ Aces” was designed to attack the infrastructure of Mexican Drug Trafficking Organizations operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico.  These organizations are responsible for the importation of large quantities of cocaine, marijuana, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.

The investigation of this case was conducted by the United States Drug Enforcement Administration, the Johnston County Sheriff’s Office, the North Carolina Highway Patrol, the Lenoir County Sheriff’s Office and the Greenville Police Department.  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.

GREENVILLE - United States Attorney Thomas G. Walker announces that a federal grand jury in Greenville returned a 22 count Second superseding Indictment (hereinafter “superseding Indictment”) (attached) on Thursday, August 6, 2015.

The superseding Indictment charged David Ricky Godwin (Godwin Sr.), 68, David Ricky Godwin Jr. (Godwin Jr.), 44, and RGB, Inc., now known as Regional Amusements, Inc. with Conspiracy to Conduct an Illegal Gambling Business, 18 U.S.C. § 371 (Count 1), Conducting an Illegal Gambling Business, 18 U.S.C. § 1955 (Count 2), two counts of Engaging in Gambling Device Business without Registering, 15 U.S.C. § 1173(a), 1176 (Counts 3-4), four counts of Failing to Maintain a Record of Gambling Devices, 15 U.S.C. § 1173(c), (d), 1176 (Counts 5-8), and thirteen counts of Possession of Unmarked Gambling Devices, 15 U.S.C. § 1173(e), 1176 (Counts 9-21).  The superseding Indictment also charged Godwin Sr. with Possession of a Firearm by a Convicted Felon, 18 U.S.C. § 922(g) (Count 22).

If convicted of counts 1 and 2 (Conspiracy and Conducting an Unlawful Gambling Business), Godwin Sr. and Godwin Jr. face a maximum imprisonment of 5 years for each count.  If convicted of Counts 3 through 21 (violations of the Gambling Devices Act of 1962), they face a maximum of two years imprisonment for each count.  For counts 1 through 21, they face a maximum fine of $250,000 for each count or twice gross gain, whichever is greater.  For Count 22, Godwin Sr. faces a maximum term of imprisonment of 10 years and a maximum fine of $250,000.  For Counts 1 through 21, RGB, Inc. faces a maximum fine of $500,000 for each count or twice gross gain.  The superseding Indictment also seeks forfeiture of proceeds traceable to conducting an illegal gambling business and Conspiracy to do so in violation of Counts 1-2.  It also seeks forfeiture of the gambling devices seized during the investigation and forfeiture of the Mossberg model 500A 12 gauge shotgun allegedly involved in the violation of 18 U.S.C. § 922(g).

The charges and allegations contained in the superseding 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 North Carolina Alcohol Law Enforcement (ALE), the Internal Revenue Service - Criminal Investigation (IRS-CI), the Federal Bureau of Investigation (FBI), and the United States Marshal’s Service (USMS).

NEW BERN - United States Attorney Thomas G. Walker announced that in federal court yesterday, United States District Judge Louise W. Flanagan sentenced FRANCISCO ARROLLO-SILVA, 27, of Clayton, North Carolina, to 142 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine and laundering monetary instruments.  ARROLLO-SILVA previously pled guilty to these charges on August 14, 2014.   

     The investigation of ARROLLO-SILVA began in April 2013 when the Drug Enforcement Administration learned that ARROLLO-SILVA planned to provide a money courier in excess of $200,000 in drug proceeds that were destined for a cocaine trafficking organization in Mexico.  On April 16, 2013, ARROLLO-SILVA met with a DEA undercover agent posing as the money courier in Clayton, N.C., and gave the agent $214,801.

During the summer of 2013, agents learned that FABIO HIROCHI INOUE of Anaheim, California, was delivering multi-kilogram shipments of cocaine to ARROLLO-SILVA, JOSE LUIS MORALES-SILVA and SANTOS PENALOZA-MILLAN. On September 22, 2013 agents arrested INOUE at Raleigh Durham International Airport after seizing from his luggage 3,891 grams of cocaine that was destined for ARROLLO-SILVA, MORALES-SILVA and PENALOZA-MILLAN.

On  November 4, 2013, agents used a confidential informant to buy 9 ounces of cocaine from ARROLLO-SILVA at a stash house located off of Sanders Road near Willow Springs, N.C.  The informant saw an additional half kilogram of cocaine at the house.  MORALES-SILVA and PENALOZA-MILLAN were also present during the cocaine sale.

On February 14, 2014, agents arrested ARROLLO-SILVA and PENALOZA-MILLAN at PENALOZA-MILLAN’S house located at 1199 S. Pleasant Coates Road in Benson, North Carolina.  In the house, agents found 3.8 kilograms of cocaine, a cocaine press, a vacuum sealer, digital scales, firearms, ammunition and a shrine with statues and burning candles, commonly used by drug traffickers to protect them from being arrested.

MORALES-SILVA and PENALOZA-MILLAN have pled guilty to conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine; their sentencing hearings are pending.  On June 10, 2015, Judge Flanagan sentenced INOUE to 51 months and 5 years of supervised release for conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine and conspiracy to launder monetary instruments.

This case was part of OCDETF Operation “Smokin’ Aces”.  Operation “Smokin’ Aces” was designed to attack the infrastructure of Mexican Drug Trafficking Organizations operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico.  These organizations are responsible for the importation of large quantities of cocaine, marijuana, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico.

The investigation of this case was conducted by the United States Drug Enforcement Administration, the Johnston County Sheriff’s Office, the Lenoir County Sheriff’s Office, the Greenville Police Department, and the Internal Revenue Service-Criminal Investigations 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.

GREENVILLE – United States Attorney Thomas G. Walker announced that today in federal court Senior United States District Judge Malcolm J. Howard sentenced AKI D. STANLEY, 41, of Raleigh, to serve 45 months in prison, followed by a three-year term of supervised release.  Pursuant to his plea agreement, STANLEY agreed to pay $378,834 in restitution to the Internal Revenue Service.

     On February 10, 2015, STANLEY plead guilty to making and presenting a false tax refund claim to the IRS, in violation of 18 U.S.C. § 287.  According to the charging instrument and other court filings, as well as today’s sentencing proceedings, STANLEY engaged in a scheme to prepare and file fraudulent federal tax returns in the names of others, including homeless individuals in Raleigh from whom STANLEY obtained personal identifying information.  The returns that STANLEY unlawfully prepared and submitted to the Internal Revenue Service claimed false tax refunds totaling $487,359.

     Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation.  Assistant United States Attorney Adam F. Hulbig represented the United States.

WASHINGTON—North Carolina-based seafood processor and wholesale distributor Alphin Brothers Inc., was sentenced today in federal court for falsely labeling imported shrimp, the Justice Department announced.            

Pursuant to plea agreement entered on February 10, 2015, Alphin Brothers Inc., pleaded guilty to one felony count of making or submitting false records in violation of the Lacey Act.  Court documents state that an Alphin Brothers employee, who purchased and sold shrimp on the company’s behalf, directed Alphin Brothers employees and employees of another seafood processing facility to falsely label approximately 25,000 pounds of farm-raised imported shrimp as wild-caught product of the United States.  The falsely labeled shrimp was later sold by Alphin Brothers in interstate commerce to customers in Louisiana.

Consistent with the plea agreement, the court sentenced Alphin Brothers Inc., to pay a criminal fine of $100,000 and to forfeit approximately 21,450 pounds of shrimp.  The company also will serve three years of probation, including a special condition requiring the company to implement a training program to educate its employees on federal labeling requirements, as they relate to business activities at the company..

Federal regulations require seafood retailers to provide customers with notice of the country of origin and the method of production (wild-caught or farm-raised) of shrimp and other shellfish.  These regulations are known by the acronym COOL, which stands for “country of origin labeling.”  The COOL regulations allow country of origin and method of production information to be provided in any format, as long as it is placed in a conspicuous location such that it will likely be read and understood by a customer under normal circumstances.  Many shrimp processors and wholesale distributors, including Alphin Brothers Inc., print country of origin and/or method of production information directly on packaging, such as boxes, intended for retail sale.

Under the COOL regulations, shrimp may be labeled as “product of the United States” only if they were harvested and processed in the United States or by a United States-flagged vessel and have not undergone any substantial transformation outside the United States.  Packing, repacking, thawing, freezing, cleaning, peeling, deveining, grading, cooking, or soaking shrimp in sodium tripolyphosphate solution does not constitute a substantial transformation under the COOL regulations.

The Lacey Act is a federal law making it illegal to make or submit any false record, account, or label for, or any false identification of, any fish or wildlife that has been or is intended to be imported, transported, purchased or received from any foreign country, or transported in interstate or foreign commerce.  The maximum penalties for a felony violation of the Lacey Act include up to five years of imprisonment and $250,000 in fines for individual defendants and up to $500,000 in fines for corporate defendants.

The case was investigated by the National Oceanic and Atmospheric Administration Office of Law Enforcement, with assistance from the Louisiana Department of Wildlife and Fisheries.  The case was prosecuted by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina.

WILMINGTON - United States Attorney Thomas G. Walker announced that yesterday in federal court, TERRY LAMONT SPELLER, 37, of Winterville, North Carolina, pleaded guilty to Health Care Fraud and Engaging in Monetary Transactions Involving Criminally Derived Property.

“Illegal schemes like this one waste tax dollars and divert funds that are supposed to go toward needed medical care. Our investigators and attorneys will continue to work closely with federal officials to fight health care fraud and recover the public’s money,” said North Carolina Attorney General Roy Cooper.

“Criminals such as Speller, who engage in healthcare fraud, are among the worst, enriching themselves at the expense of others,” said Thomas J. Holloman, Special Agent in Charge of Internal Revenue Service, Criminal Investigation. “IRS Criminal Investigation remains steadfast in our commitment to bring those that would engage in this type of criminal activity to justice.”

"Fraudulently billing for behavioral health services costs the Medicaid program millions of dollars each year and diverts precious resources from those who need it most," said Derrick Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General in Atlanta. "The OIG and our law enforcement partners will continue to aggressively pursue these thieves to ensure they are held accountable."

The Criminal Information to which SPELLER pleaded guilty provides that between 2010 and 2015, TERRY LAMONT SPELLER was an individual doing business through various Outpatient Behavioral Health and Outpatient Health Service providers in Pitt County and surrounding areas.  Through these providers, SPELLER recruited hundreds of Medicaid beneficiaries, mostly children, from various communities in Eastern North Carolina to receive alleged services compensable by Medicaid.

In 2010, North Carolina’s Division of Medical Assistance (DMA), which administers the Medicaid program in this state, began an investigation of one of SPELLER’s companies based upon allegations that the company was billing for services that were not actually rendered.  When requested, SPELLER failed to provide records to support the services that were billed.  As such, the company was suspended from further participation in Medicaid programs.

Although excluded from the Medicaid program, over the next several years SPELLER concocted various schemes to continue getting paid.  The schemes included getting various other providers to bill the Medicaid program on his behalf and submitting a forged document to Medicaid in order for payments to be wired into a bank account controlled by SPELLER.   

In total, SPELLER fraudulently caused in excess of $4 Million to be billed to Medicaid using another provider’s number for service not provided and caused the proceeds to be deposited into an account controlled by SPELLER.  SPELLER used the proceeds of the false and fraudulent claims to fund various purchases, including a $20,000 check to purchase a Shelby Cobra automobile.

Prior to pleading guilty, SPELLER was arrested and detained for threatening to kill a witness if she spoke to law enforcement.  SPELLER will remain detained until the time of his sentencing, which will occur later in 2015.

At sentencing, SPELLER faces up to 20 years in prison.  The maximum term of imprisonment for Health Care Fraud is 10 years.  The maximum term of imprisonment for Engaging in Transactions Using Fraudulent Proceeds is 10 years.  SPELLER also faces up to 3 years of supervised release, $500,000 in fines, and an order of restitution for the full amount of the fraud.

The investigation of this case was conducted by agents of the North Carolina State Bureau of Investigation assigned to the Medicaid Investigations Division of the North Carolina Attorney General’s Office; The Internal Revenue Service - Criminal Investigation; and the United States Department of Health and Human Services Office of the Inspector General.  The investigation and prosecution of this matter is being handled in a partnership between the United States Attorney’s Office for the Eastern District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office.

Assistant United States Attorney William M. Gilmore of the Economic Crimes Division, and Special Assistant United States Attorney Daniel Spillman of the Medicaid Investigations Division of the North Carolina Attorney General’s Office, represent the United States.

RALEIGH - United States Attorney Thomas G. Walker announced that today in federal court, following jury selection in his criminal trial, MILTON RUSS BARNHILL, of Tabor City, North Carolina, entered guilty pleas to all pending counts against him.     

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 12 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 by 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 15 through 19 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.

At sentencing, the defendant faces up to 30 years in prison on each of Counts 2 through 8, 10, and 11, pertaining to false federal crop insurance claims.  The defendant faces up to 30 years in prison on Count 12, pertaining to the mail fraud upon Horry County State Bank.  The Defendant faces up to 10 years in prison on each of Counts 15 through 19 pertaining to Mail Fraud.  Lastly, the defendant faces up to 5 years in prison on Count 1, pertaining to the conspiracy. 

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; and the United States Internal Revenue Service – Criminal Investigations; with the assistance of the Columbus County Sheriff’s Office and the Whiteville Police Department.  Assistant United States Attorney William M. Gilmore handled the prosecution at trial on behalf of the Eastern District of North Carolina.

As part of the Justice Department’s celebration marking the 25th anniversary of the American with Disabilities Act this year, the department announced today the signing of a settlement agreement with Robeson County, North Carolina, to improve access to all aspects of civic life for persons with disabilities.  The agreement is part of Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).  

As part of the PCA initiative, Justice Department staff survey state and local government facilities, services and programs in communities across the country to identify what is needed to comply with the ADA.  The agreements address the steps a community must take to improve access.  With the signing of this agreement, the department has entered into 11 PCA agreements this year alone, and 219 agreements since the initiative began.

The agreement will benefit the residents of the geographically largest county in the state which is also one of its most diverse.  With a population of 134,760, that is 39.5 percent Native American and 24.7 percent African American, the county also had 31.7 percent of its residents living below the poverty level.  Under the agreement announced today, Robeson County will remove barriers to accessibility in buildings, such as government office buildings providing services to its citizens, libraries, recreation centers, community centers, polling places, parks, courthouses, police or sheriff offices, and detention facilities.  The agreement also requires the county to:

• Make physical modifications to facilities so that parking, routes to parks and playgrounds, routes into the buildings, entrances, public telephones, restrooms, service counters and drinking fountains are accessible to people with disabilities, and that assembly areas have the required wheelchair and companion seating;
• Post, publish and distribute a notice to inform members of the public of the provisions of Title II and their applicability to the county’s programs, services and activities;
• Operate each county program, service or activity so that it is readily accessible to people with disabilities, and to deliver county services, programs and activities in alternate ways;
• Train staff in using their state relay service for telephone communications;
• Provide an accessible voting program for people who use wheelchairs and for people who are blind or have low vision;
• Establish a policy for the Robeson County Sheriff’s Office when its officers are in contact with people who are deaf or hard of hearing;
• Provide information for interested persons with disabilities concerning the existence and location of the county’s accessible services, activities and programs; and
• Establish, implement and post online a policy that their web pages be accessible, create a process for implementation and ensure that all new and modified web pages are accessible.

“We commend Robeson County officials for their cooperation in reaching this settlement, which will remove barriers so that people with disabilities have an equal opportunity to participate in civic life, a fundamental part of American society,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “As we celebrate the 25th anniversary of this major civil rights law, the department renews its commitment to work with state and local governments across the country, in rural and in urban communities, to ensure that all citizens with disabilities attain equal access to all of their programs, activities and services.” 

“Protecting access for individuals with disabilities will continue to be a priority for this district,” said U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina.

For more information about the ADA, today’s agreement, the Project Civic Access initiative, individuals may access the ADA web page at http://www.ada.gov/civicac.htm or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).

WASHINGTON – As part of the Justice Department’s celebration marking the 25th anniversary of the American with Disabilities Act this year, the department announced today the signing of a settlement agreement with Robeson County, North Carolina, to improve access to all aspects of civic life for persons with disabilities.  The agreement is part of Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA). 

As part of the PCA initiative, Justice Department staff survey state and local government facilities, services and programs in communities across the country to identify what is needed to comply with the ADA.  The agreements address the steps a community must take to improve access.  With the signing of this agreement, the department has entered into 11 PCA agreements this year alone, and 219 agreements since the initiative began.

The agreement will benefit the residents of the geographically largest county in the state which is also one of its most diverse.  With a population of 134,760, that is 39.5 percent Native American and 24.7 percent African American, the county also had 31.7 percent of its residents living below the poverty level.  Under the agreement announced today, Robeson County will remove barriers to accessibility in buildings, such as government office buildings providing services to its citizens, libraries, recreation centers, community centers, polling places, parks, courthouses, police or sheriff offices, and detention facilities.  The agreement also requires the county to:

• Make physical modifications to facilities so that parking, routes to parks and playgrounds, routes into the buildings, entrances, public telephones, restrooms, service counters and drinking fountains are accessible to people with disabilities, and that assembly areas have the required wheelchair and companion seating;
• Post, publish and distribute a notice to inform members of the public of the provisions of Title II and their applicability to the county’s programs, services and activities;
• Operate each county program, service or activity so that it is readily accessible to people with disabilities, and to deliver county services, programs and activities in alternate ways;
• Train staff in using their state relay service for telephone communications;
• Provide an accessible voting program for people who use wheelchairs and for people who are blind or have low vision;
• Establish a policy for the Robeson County Sheriff’s Office when its officers are in contact with people who are deaf or hard of hearing;
• Provide information for interested persons with disabilities concerning the existence and location of the county’s accessible services, activities and programs; and
• Establish, implement and post online a policy that their web pages be accessible, create a process for implementation and ensure that all new and modified web pages are accessible.

“We commend Robeson County officials for their cooperation in reaching this settlement, which will remove barriers so that people with disabilities have an equal opportunity to participate in civic life, a fundamental part of American society,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “As we celebrate the 25th anniversary of this major civil rights law, the department renews its commitment to work with state and local governments across the country, in rural and in urban communities, to ensure that all citizens with disabilities attain equal access to all of their programs, activities and services.”

 “Protecting access for individuals with disabilities will continue to be a priority for this district,” said U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina.

NEW BERN – United States Attorney Thomas G. Walker announced that in federal court today WILLIAM TOWNER AKERS of Raleigh, North Carolina, pled guilty before United States Magistrate Judge Robert B. Jones, Jr., 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 January 5, 2014, a state search warrant was executed at Bailey Joe and Elizabeth Mills’ residence and several laptop computers, external hard drives and cellphones were seized.  A subsequent computer forensics examination of the seized items located several homemade videos taken by the Mills.  The Mills have previously pled guilty and been sentenced for Manufacturing Child Pornography.  The videos show AKERS sexually molesting an eight year old female in August 2013.  On March 10, 2015, a federal complaint charging “John Doe aka Peter Gilbert” with conspiracy to manufacture Child Pornography was obtained.  AKERS was later identified as the perpetrator and arrested on March 12, 2015 after several tipline callers identified him.  AKERS was the IT manager for a company located in Raleigh.

At sentencing, set for the October 2015, term of court AKERS faces up to 30 years imprisonment.

The criminal investigation of this case was conducted by the United States Immigration and Customs Enforcement’s Homeland Security Investigations – Raleigh, the Harnett County Sheriff’s Office, and the Raleigh 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.

WILMINGTON – United States Attorney Thomas G. Walker announced today that JAMES RODREQUIAS PRESSLEY, 43, of Dunn, North Carolina, was sentenced to life imprisonment followed by 5 years of supervised release.  PRESSLEY was convicted by a federal jury on July 30, 2014 on 13 drug related and money laundering counts including Conspiracy to Distribute and Possess with Intent to Distribute 280 grams or more of Cocaine Base (Crack) and 5 kilograms or more of Cocaine and Conspiracy to Commit Money Laundering from December 2008 to April 3, 2013.  The jury returned its verdict following a trial before Senior United States District Judge James C. Fox.

The defendant was the target of an investigation into distributors of narcotics in the area of Dunn.  From at least 1999 to 2012, PRESSLEY was an upper-level drug trafficker who was responsible for possessing and distributing approximately just over 2 kilograms of crack cocaine and 191.5 kilograms of cocaine.  PRESSLEY received these narcotics from several suppliers.  PRESSLEY used numerous others to distribute his drugs throughout Eastern North Carolina and also converted some of his cocaine into crack cocaine.  Between December 12, 2011, and February 1, 2012, investigative agents used a confidential informant (CI) to conduct several controlled purchases of crack cocaine from PRESSLEY.  Several of the controlled buys occurred at PRESSLEY’S residence in Dunn.

The IRS determined that PRESSLEY had no verifiable employment history during the time of the offense; however, between June 12, 2009, and August 17, 2010, PRESSLEY purchased several properties on Railroad Avenue in Dunn for a total of $10,500.  PRESSLEY subsequently made additions and/or renovations to the properties valued at $12,000.  PRESSLEY used these properties to sell and store cocaine and crack cocaine, and store proceeds from his drug-trafficking activities.

During the drug conspiracy, PRESSLEY ostensibly operated a legitimate music business, Blackbird Entertainment (BE), as well as a landscaping business in Dunn.  PRESSLEY used drug proceeds to pay for concerts and production costs in an attempt to promote BE.  He also used $7,860.35 in drug proceeds to purchase equipment for his landscaping business.  In order to conceal the source of illegal proceeds, between January 5, 2009, and November 22, 2011, PRESSLEY made deposits totaling $29,805 to the bank account of his girlfriend, deposits totaling $20,060, to his landscaping account, and deposits totaling $15,000 to his account at Bank of America.  Investigators also determined that between September 5, 2009, and February 28, 2011, PRESSLEY used $26,912 in drug proceeds to purchase at least three vehicles.

Investigation of this case was conducted by the Harnett County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the North Carolina State Bureau of Investigation, and the Dunn Police Department.  The case was prosecuted by Assistant United States Attorney Jennifer E. Wells.

RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, WILLIE RIGGS GODFREY, III, 44of Winterville, North Carolina, was sentenced before United States District Judge Terrence W. Boyle.  GODFREY received 125 months imprisonment followed by a 10 year term of supervised release.

On November 24, 2014, a Criminal Indictment was filed charging GODFRFEY with receiving and possessing child pornography, in violation of Title 18, United States Code, Section 2252.  On January 20, 2015, GODFREY pleaded guilty to receiving child pornography.

According to the investigation, on January 13, 2014, the Pitt County Sheriff’s Office received a tip of an IP address downloading child pornography.  On January 30, 2014, the Pitt County Sheriff’s Office received information that the IP address was in use by GODFREY at his house.  On February 4, 2014, reports showed that IP address was last active on February 1, 2014, with 51 possible files believed to be child pornography.

On February 6, 2014, the Pitt County Sheriff’s Office executed a search warrant on GODFREY’s residence.  GODFREY voluntarily acknowledged being in receipt of child pornography which would be on his computer but nothing produced by him.  A search of GODFREY’s computer revealed 5,312 images, 162 videos, and 18 compressed files of child pornography and erotica.

Investigation of this case was conducted by the Pitt County Sheriff’s Office.  Assistant United States Attorney Rudy E. Renfer prosecuted the case for the United States.

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.

WILMINGTON – United States Attorney Thomas G. Walker announced that Monday in federal court, a jury found  ROBERT EARL MAYS and PARIS CORDAVA WILLIAMS, from the District of Columbia, guilty of bank robbery and aiding and abetting.  WILLIAMS also was found guilty of possession of a firearm by a felon.  The Honorable James C. Fox was the presiding United States District Court Judge.

According to the investigation, MAYS and WILLIAMS were traveling with a third man, RICKY FRANKS, 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 FRANKS and WILLIAMS in the car’s trunk with the bag of money, GPS tracker and a firearm.

FRANKS pled guilty to bank robbery and possession of firearm by a felon before trial.

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. 

NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flanagan sentenced RANDALL STREETER, 38,of Greenville, North Carolina, to 141 months in prison and 6 years of supervised release for conspiracy to distribute and possess with the intent to distribute heroin, cocaine and crack cocaine.  STREETER previously pled guilty to these charges on March 10, 2015.    

The Greenville Regional Drug Task Force used a confidential informant to buy heroin from STREETER on three occasions in May 2014.  After the last purchase on May 29, 2014, detectives arrested STREETER and found STREETER in possession of heroin, crack cocaine and Percocet pills.  The  investigation revealed that STREETER was responsible for trafficking 9.12 grams of heroin, 70 grams of cocaine, 1 gram of crack cocaine and 2 Percocet pills.  STREETER faced an enhanced sentence due to his status as a career offender based on his prior convictions.  STREETER’S prior felony convictions include two counts of conspiracy to commit armed robbery, indecent liberties with a child, possession of cocaine and two counts of selling cocaine. 

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. 

GREENVILLE - United States Attorney Thomas G. Walker announced today that, STEPHEN A. LAROQUE, 51, of Kinston, North Carolina, was sentenced to 24 months imprisonment followed by 2 years of supervised release.  The sentence relates to his theft and embezzlement of hundreds of thousands of dollars from a non-profit of which he served as the Executive Director.  Additionally, LAROQUE was ordered to pay $300,000 in criminal restitution to the U.S. Department of Agriculture (USDA) and was fined $5,000. 

On January 26, 2015, LAROQUE pled guilty to one count of theft, embezzlement, and misapplication of $150,000 in USDA funds that had been loaned to East Carolina Development Company (“ECDC”), a nonprofit organization based in Kinston, North Carolina.  LAROQUE served as Executive Director of ECDC, which was created to provide loans to small rural businesses using federal funds.  LAROQUE used his fiduciary position as head of the non-profit to steal and embezzle the federal funds.  As part of his plea, LAROQUE agreed to pay back $300,000 in criminal proceeds to the USDA.

According to the Indictment in this case, LAROQUE accomplished his $300,000 theft through four disbursements made by ECDC under the guise of loans to LAROQUE’s wholly-owned company, LaRoque Management Group (LMG).  A review of bank records established that such funds were funneled through LMG and then used for LAROQUE’S personal benefit, including his investment in an ice skating rink in Greenville and the purchase of rental property in Kinston.

On June 7, 2013, after a three-week trail, a jury found LAROQUE guilty on each of the twelve counts.  Later, the court granted a new trial based on an issue regarding a juror’s internet research during deliberations.  The guilty plea came less than a week prior to the second trial.

Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation, the United States Department of Agriculture, Office of Inspector General-Investigations, Raleigh Office, and the Federal Bureau of Investigation.  Assistant United States Attorneys, Dennis M. Duffy and Adam F. Hulbig prosecuted the case.

NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today, United States District Judge Louise W. Flanagan sentenced JOSHUA MICHAEL EDMONDSON, 26,of Pinetops, North Carolina, to 79 months in prison and 5 years of supervised release for conspiracy to distribute and possess with the  intent to distribute cocaine and for using and carrying a firearm during and in relation to a drug trafficking crime.  EDMONDSON previously pled guilty to these charges on July 15, 2014.    

The Greenville Regional Drug Task Force used a confidential informant to buy cocaine and Vicodin pills from EDMONDSON in September 2012.  On October 3, 2012, EDMONDSON met with the informant to sell him 12 ounces of cocaine.  Detectives arrested EDMONDSON during the meeting and found EDMONDSON in possession of 348 grams of cocaine and a stolen 9 mm pistol.  The  investigation revealed that EDMONDSON was responsible for trafficking 476 grams of cocaine. 

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, Chief United States District Judge James C. Dever III sentenced JULIAN MARIE BRESLOW , 53, of Fort Lauderdale, FL to 30 months imprisonment, followed by 3 years of supervised release.
BRESLOW was named in an Indictment filed on February 11, 2014 charging her with Major Fraud, False Statements, Wire Fraud, Mail Fraud, and Aggravated Identity Theft.  On September 12, 2014, BRESLOW pled guilty to Count 3 of the Indictment, false statements to the United States in violation of 18 U.S.C. § 1001.

According to the investigation, BRESLOW owned Pompano Masonry Corporation, one of the largest masonry companies in the United States, through a revocable trust.  To give Pompano an edge in getting business, BRESLOW set up Breslow Construction LLC as a woman owned small business in the name of herself and her two daughters, one of whom was a minor at the time, the other was a law student.  But Breslow Construction was never a separate, independent business from Pompano and therefore did not qualify as a small business.  BRESLOW used Breslow Construction to apply for and receive over $30 million of masonry subcontracts on large federal projects.  BRESLOW used her daughter’s identity to assist her in the fraud, in one case, having her daughter’s signature stamped on a $15 million contract without her knowledge or permission.

AUSA Bragdon stated, “The kind of fraud Breslow committed undermines the purpose and effectiveness of preferences given to small businesses.  BRESLOW victimized her own family when she decided to use her daughters’ names in committing the fraud.”

"DCIS continues our aggressive investigative efforts, in partnership with other agencies, to ensure the integrity of all defense programs, to include military construction contracts, which ultimately benefit our dedicated Warfighters," said John Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service.

Investigation of this case was conducted by the Defense Criminal Investigative Services, Naval Criminal Investigative Services, and Small Business Administration, Office of Inspector General.  David Bragdon was the assistant U.S. Attorney assigned to the case.

WILMINGTON – United States Attorney Thomas G. Walker announced that today in federal court before Senior United States District Judge James C. Fox, a jury convicted DAVID CHRISTOPHER MAYHEW , 43, of Conspiracy, Wire Fraud, Mail Fraud, and Money Laundering.

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.

Assistant United States Attorney David A. 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.”

“Few betrayals are as devastating as being the victim of investment fraud. David Mayhew and Ronald McCullough preyed upon people’s trust and financial stability for the sake of greed,” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation.  “Today’s jury verdict with respect to Mayhew, delivers a measure of justice to those victimized. IRS Criminal Investigation remains committed to the pursuit of those who profit at the expense of innocent victims, through criminal activity.”

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.