Eastern District of North Carolina

WASHINGTON – Lamont Deshawn Byrd pleaded guilty today in federal court in Raleigh, North Carolina, to one count of first degree murder of an Officer of the United States announced Thomas G. Walker, U.S. Attorney for the Eastern District of North Carolina. Byrd, 21, was charged by Criminal Information on June 5, 2014, which states that on June 9, 2011, Byrd, with premeditation and malice, killed a Warren Basco “Sneak” Lewis, III, an investigator with the Nash County Sheriff’s Office who was also a sworn special deputy United States marshal assigned to the Eastern North Carolina Regional Fugitive Task Force.

Additionally, according to information provided in open court, on June 2, 2011, Kinston officers responded to an emergency call, in which Thomas Terrell Hinton was fatally shot in the chest by Byrd, Kion Tyearl Dail and two additional juveniles, who then stole his bicycle. 

Joining Mr. Walker in today’s announcement are Greg McLeod of the North Carolina State Bureau of Investigation; Wayne L. Dixie, Jr., Special Agent-in-Charge, of the Bureau of Alcohol, Tobacco, Firearms and Explosives; and Bill Johnson, Chief, Kinston Department of Public Safety.

According to United States Attorney Walker; “Assaults on federal law enforcement officers in the performance of their duties will not be tolerated.  The death of Special Deputy Lewis is a tragedy for his family and all of us in the law enforcement community.”

“The U.S. Marshals Service’s Task Forces play a critical role in protecting our communities across the nation,” said Stacia Hylton, Director of the U.S. Marshals Service.  “The partnerships we form with State and Local law enforcement agencies are at the center of reducing violence in our communities, especially in small towns.  The men and women in these task forces are dedicated to this effort and Investigator Warren Lewis exemplified that devotion.  He was killed serving warrants on five people, including three who were wanted for murder.  Each posed a significant threat within the community. We all still miss Warren and we hope that knowing his killer will face justice brings some small level of peace to this situation, which is important for his beloved family. Warren will always be remembered for the hero he was, giving his life in the protection of others.”

“Today’s plea is the result of a tragedy and loss of human life that was not necessary.” said ATF Special Agent in Charge Wayne Dixie, “Anyone that uses a firearm to commit a violent criminal act, especially the murder of a law enforcement officer will be held accountable for their actions. We will continue to use all of our resources to prosecute those that choose to commit this type of heinous act.”

"North Carolina is grateful for the service and sacrifice of officers like Investigator Lewis, and I'm proud of the work State Bureau of Investigation (SBI) agents and all involved have done to bring justice to this tragic case," North Carolina Attorney General Roy Cooper said.

Director of the Kinston Department of Public Safety Bill Johnson added, “The Lewis family and the State of North Carolina lost a true hero. I wish to thank the many individuals and agencies for their assistance in the effort to see justice done.”

On June 9, 2011, Kinston officers, along with U.S. Deputy Marshals attempted to locate the suspects utilizing warrants and executed a search warrant at 602-A West Lenoir Avenue, Kinston, NC.  This address is a residence which has been converted into three separate apartments; one upstairs and two downstairs. Although it appeared that 602-A had been inhabited, the apartment was now empty.  However, two shotguns were located.  Laboratory testing revealed that Byrd had possessed the weapons.  Earlier Byrd and several others had moved to Apt B downstairs.

Later that day, after developing additional information, law enforcement officers went back to the Lenoir Avenue apartments.  While searching for the suspects, law enforcement officers announced their presence.  As Investigator Lewis was coming down the stairs from the upstairs apartment, Byrd shot three times through the closed door, striking the deputy all three times.  After realizing he had shot an officer, Byrd was heard to utter, “See what you made me do?”  Byrd then handed the weapon to another individual to hide.  After a 20-minute stand-off, the individuals came out.  The weapon, a Berretta .40 caliber semi-automatic pistol, was found in a banker’s box in a closet, with Byrd’s DNA on it.  The weapon had been stolen from a residence three weeks prior.

Investigator Lewis was transported to the hospital where he later died from his injuries.

According to the Plea Agreement, Byrd has also been charged in state court and will plead guilty to murder charges.

At sentencing, scheduled for November 3, 2014, Byrd faces a life-term of imprisonment followed by up to five years of supervised release.

The investigation was conducted by the North Carolina State Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Kinston Department of Public Safety.

The prosecution is being handled by Assistant U.S. Attorney Jane J. Jackson and Imelda J. Pate, Assistant District Attorney for the Eighth District.

RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, before United States District Judge Terrence W. Boyle, HOMER LEWIS BLACKBURN , 27, of Atlantic Beach, North Carolina, was sentenced to 18 months of imprisonment and 3 years supervised release and was ordered to pay $288,390.80 in restitution.  On May 2, 2014 BLACKBURN entered a guilty plea to making false distress calls to the United States Coast Guard.

According to information in the public record, on October 8, 2013, Coast Guard Sector North Carolina received a “MayDay” call in which the caller claimed he was sinking and abandoning his boat in the vicinity of Cape Lookout and Shackleford Banks, North Carolina.  Upon receipt of the distress call, the U.S. Coast Guard, assisted by the U.S. Marine Corps, the National Park Service and a local salvage company commenced search and rescue operations using helicopters and boats to search the area.  Ultimately, the Coast Guard determined that the call was a hoax, but not until after $288,390.80 worth of resources were expended.

Shortly thereafter, Coast Guard Investigative Service (“CGIS”) began an investigation and received information from a witness who identified the caller as HOMER LEWIS BLACKBURN and confirmed it was a hoax.  The witness stated that BLACKBURN used a CB radio he mounted to the balcony of his apartment in Atlantic Beach, North Carolina to make the call.  She heard him saying,“Mayday, Mayday” and that he was sinking in the vicinity of Cape Lookout, NC.  She then told officers that BLACKBURN went out to the balcony to watch the helicopters search Cape Lookout.  When the press reported that the call was a hoax, BLACKBURN sent the witness a text message on her phone asking her not to tell anyone about the call.

During the investigation, another witness came forward and claimed that BLACKBURN bragged about making the hoax calls, BLACKBURN admitted he reported that he was sinking off Cape Lookout, and that he, BLACKBURN, thought the calls were funny.

BLACKBURN subsequently confessed to making the hoax calls.

"False distress calls limit the Coast Guard's ability to respond to actual emergencies," said Captain Sean Murtagh, commander of Sector North Carolina. "Ultimately, they penalize the local communities and mariners the Coast Guard is charged to protect by unnecessarily endangering the lives of responders and wasting hundreds of thousands of tax payer dollars.  Through the vigilance of the public, our strong partnerships with the Department of Justice, the U.S. Attorney's Office, and our Coast Guard Investigative Service, this case affirms our collective commitment to holding accountable those individuals who make hoax calls."

The search and rescue efforts were led by United States Coast Guard – 5th District and Coast Guard Sector North Carolina.  The criminal investigation of this case was conducted by the United States Coast Guard Investigative Service.  Assistant United States Attorney Banumathi Rangarajan prosecuted the case with assistance from Assistant United States Attorney Evan Rikhye.

RALEIGH – United States Attorney Thomas G. Walker announced Senior United States District Judge James C. Fox has denied Jeffrey MacDonald’s latest motions for a new trial. United States Attorney Thomas G. Walker stated, “Today our thoughts turn toward Colette, Kimberly and Kristen MacDonald whose lives were taken tragically by the defendant in this case.  We have and will continue to seek justice on their behalf.” 

United States District Judge James C. Fox entered an order on July 24, 2014, denying MacDonald’s motions and stating that MacDonald had not made a sufficient showing to permit him to appeal Judge Fox’s decision to the United States Court of Appeals for the Fourth Circuit in Richmond, VA. If MacDonald wishes to appeal, he will now have to ask the Fourth Circuit for permission to appeal the ruling.  

MacDonald was convicted in 1979 of the 1970 murders of his pregnant wife Collette, and his two daughters Kimberly, age 5, and Kristen, age 2, at Fort Bragg, NC.  Since then, MacDonald has filed numerous challenges to his conviction, all unsuccessful.  The latest motions were based on allegations made in 2006 by former U.S. Deputy Marshal Jimmy Britt and DNA test results released in 2006.  The District Court found that Britt’s allegations were “incredible and unreliable.”  The Court also found that the DNA results did not “constitute exculpatory scientific evidence.”

The Court held a 7-day evidentiary hearing in September 2012 and received extensive briefing in 2013.

The Court stated a separate order would be forthcoming with respect to MacDonald’s 2011 motion requesting additional DNA testing.

The Government is represented in the matter by First Assistant U.S. Attorney John Stuart Bruce, Assistant U.S. Attorney Leslie K. Cooley, and Special Assistant United States Attorney Brian M. Murtagh.

Investigation of this case was conducted by the Army Criminal Investigative Division, and the Federal Bureau of Investigation.

RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today Chief United States District Judge James C. Dever, III, sentenced MICHAEL THOMAS BASSETT, JR., 33, of Portsmouth, Ohio, to 210 months imprisonment followed by 20 years supervised release. 

On November 25, 2013, a Federal Grand Jury returned a Criminal Indictment charging BASSETT.  On April 16, 2014, BASSETT pled guilty to receipt of child pornography, in violation of Title 18, United States Code, Sections 2252(a)(2).

According to the investigation, in March, 2013, law enforcement received a tip advising that an unknown individual had posted child pornography images on the social networking site known as Second Life.  A subpoena was issued for subscriber information and the accountholder identified as BASSETT, a registered sex offender from Wilmington, North Carolina.   The information was then relayed to the Federal Bureau of Investigation,  BASSETT’s estranged wife was contacted, who surrendered a laptop.  Forensic examination of the laptop revealed 250 images of child pornography and 105 videos of child pornography. 

On September 3, 2013, BASSETT was arrested and his computer and multiple media storage devices seized.  The computer and devices were examined and revealed a total of 8,950 images of child pornography.    

The criminal investigation of this case was conducted by the Federal Bureau of Investigation 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 BENJAMIN FRANKLIN PASS, 61, and P&W WASTE OIL SERVICES INC. (P&W), of Leland, N.C., were sentenced today in federal court in Raleigh, North Carolina.  PASS was sentenced to 42 months in prison and restitution in the amount of $21,373,143.38 for clean-up costs associated with the environmental contamination at his business and an additional $538,857 to the Internal Revenue Service for federal income taxes he failed to pay between 2002 and 2011.  

PASS and the company previously pleaded guilty to crimes related to the unlawful handling and dilution of used oil contaminated with polychlorinated biphenyls (PCB).  PASS also pleaded guilty to failure to pay taxes and P&W pleaded guilty to material false statements.

United States Attorney Thomas G. Walker stated, “This disregard of environmental protections resulted in significant contamination.  The defendant’s conduct placed an economic burden on the United States and an unreasonable risk to the health and safety of the citizens of North Carolina.”

“Today’s sentence is just punishment for the defendant’s actions, which placed the health of North Carolina’s residents and their natural resources at risk,” said Sam Hirsch, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.  “Environmental violations such as these are serious crimes, and the Justice Department and the U.S. Attorney’s Offices will continue to vigorously prosecute those individuals and companies who ignore the laws Congress enacted to protect people and our environment from toxic substances like PCBs.”

The court also ordered P&W to pay restitution in the amount of $21,373,143.38 for losses incurred by Colonial Oil and International Paper as a result of the defendants’ mishandling of used oil contaminated with PCBs that led to widespread contamination and millions of dollars in clean-up costs.  P&W was also ordered to serve a five-year term of probation and to take remedial action to address the environmental contamination at its facility in eastern North Carolina and other leased property in eastern North Carolina, including but not limited to, the proper treatment and disposal of PCB-contaminated waste oil.

According to information in the public record, PASS owned and operated P&W’s facility in Leland, N.C. The facility is located approximately 500 feet to the east of the Cape Fear River and a federally recognized wetland.
As part of its business operations, P&W collected, transported, processed, and marketed used oil that it received from small and large companies, such as automotive service stations, transformer repair companies and marinas.  P&W also conducted tank cleaning and waste removal.  

P&W, however, was not authorized to transport, store, or handle used oil containing more than two parts per million (ppm) of PCBs.  PCBs are man-made organic chemicals that were manufactured domestically from 1929 to 1979 and were used in hundreds of industrial and commercial applications, such as thermal insulation in electrical transformers and capacitors.  PCBs were determined to cause cancer and have been demonstrated to cause a variety of adverse health effects on the immune system, reproductive system, nervous system, and endocrine system.  Accordingly, Congress banned the production of PCBs and mandated that no person may distribute in commerce, or use any PCBs other than in a totally enclosed manner, and directed the U.S. Environmental Protection Agency (EPA) to promulgate rules phasing out the manufacture of PCBs and regulating their disposal.  PCBs still exist in products produced before the 1979 ban and if mishandled and released into the environment, can remain for long periods of time in the air, water, and soil. 

In July 2009, an employee of P&W transported used-oil contaminated with more than 500 ppm of PCBs from a business in Wallace, South Carolina, to its Leland facility where the contaminated used oil was blended and diluted with other used oil.  Testing results obtained by PASS in October 2009 revealed PCB contamination in excess of 4,925 ppm.

The contaminated product was eventually resold to Colonial Oil and International Paper.  Colonial Oil discovered the contamination as part of its standard sampling and testing protocol.  As a result, over three million gallons of contaminated used oil had to be transported and incinerated at a certified disposal site for PCBs.  The costs to Colonial Oil for the proper disposal of the contaminated used oil exceeded $17 million in addition to significant disruption of its business operations.

The investigation further revealed that at the direction of PASS, employees of P&W continued to transport and dilute the PCB-contaminated used oil at the facility after the contamination was discovered.  The EPA intervened and had the Leland facility designated a Superfund site.    Superfund is the name given to the federal environmental program established to clean up the nation’s uncontrolled hazardous waste sites.  Costs for the clean-up of the contaminated tanks at the facility exceeded $3.4 million. 

Law enforcement also learned that in 2009 and again in 2010, PASS and P&W falsely certified that its employees had taken requisite training on the handling of hazardous wastes and that, between 2002 through 2011, PASS failed to pay his federal income taxes despite having the ability to pay.

“Today’s sentencing is a direct result of the strong collaboration between EPA-CID and its federal law enforcement partners,” said Maureen O’Mara, Special Agent in Charge of EPA’s criminal enforcement program in North Carolina.  “In order to safeguard the environment and public health, it is essential that we hold companies and their corporate officers responsible for falling to accurately report violations.  We will continue to pursue those who fraudulently report information critical to human health and the environment to preserve the integrity of programs designed to protect the public.”

“Mr. Pass’s disregard to uphold his legal obligations in business and paying income taxes have come with a price,” said Richard Weber, Chief, Internal Revenue Service (IRS) Criminal Investigation. “Today’s sentencing reinforces law enforcements collaborative efforts to enforce the law and ensure public trust.”   Thomas J. Holloman, Special Agent in Charge IRS Criminal Investigation added, “A fraud of this magnitude requires a coordinated effort among law enforcement agencies to stop those involved from profiting from their wrongdoing. We are the stewards of our environment and anyone who knowingly pollutes it should be held accountable.”

“Acting Assistant Attorney General Hirsch and U.S. Attorney Walker praised the continued joint efforts of the EPA’s Criminal Investigation Division and the IRS’s Office of Criminal Investigations and the U.S. Coast Guard’s Criminal Investigative Services for their diligent work in the investigation of this matter.”  Assistant U.S. Attorney Banumathi Rangarajan of the Eastern District of North Carolina and Trial Attorney Shennie Patel of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division are the prosecutors in charge of the case.  Assistant United States Attorney Norman Acker and the Financial Litigation Unit provided significant support to the prosecution team.

RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced jermaine jones , 30, of Roanoke Rapids, to 100 months imprisonment, followed by 5 years of supervised release.

jones was named in an Indictment filed on December 17, 2013, in the Eastern District of North Carolina, charging him with 1 count of possession of a firearm by a felon and 1 count of possession with the intent to distribute a quantity of marijuana.  On March 5, 2014, JONES pled guilty to those charges. 

According to the investigation, the Halifax County Sheriff’s Office (HCSO) discovered that JONES hadpawned a firearm on April 26, 2012, at a pawn shop located in Roanoke Rapids, North Carolina. Additionally, on March 28, 2013, HCSO deputies, with the assistance of other law enforcement agencies, intercepted and executed a controlled delivery of a package addressed to JONES, in Roanoke Rapids, North Carolina which contained 439.81 grams of marijuana.

Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Halifax County Sheriff’s Office, the Roanoke Rapids Police Department, the Nash County Narcotics Division, Nash County Sheriff’s Office, and Wilson Police Department.  Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.

WILMINGTON – United States Attorney Thomas G. Walker announced today that RONALD EMERY HEWETT, 51, of Supply, North Caolina, had his initial appearance in Wilmington.  HEWETT was charged with possession of a firearm by a felon, in violation of Title 18, United States Code 922(g)(1).  HEWETT is the former Brunswick County Sheriff who pled guilty to one count of Obstruction of Justice on June 2, 2008. 

HEWETT was initially charged in a criminal complaint.  As set forth in the affidavit supporting the complaint, multiple firearms were located in HEWETT’S residence on July 9, 2014.  HEWETT is a convicted felon and was sentenced to a 16 month term of imprisonment on October 6, 2008.

If convicted, HEWETT faces a maximum penalty of 10 years imprisonment, a $250,000 fine, and 3 years supervised release.  The actual sentence would be determined by the sentencing court after consideration of the advisory sentencing guidelines.

Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) and the Brunswick County Sheriff’s Office.  The prosecution is being handled by Assistant United States Attorney Jennifer E. Wells.   

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.

RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced LONNELL DEANGELO MCRAE , 27, of Fayetteville to 300 months imprisonment, followed by 5 years of supervised release.

MCRAE was named in an Indictment filed on April 3, 2013, charging him with 7 counts.  The Indictment charged MCRAE with 1 count of Hobbs Act Robbery and Aiding and Abetting, 2 counts of Brandishing a Firearm During and in Relation to a Crime of Violence and Abetting and Aiding, 1 count of Carjacking and Aiding and Abetting, 1 count of Possession of a Firearm by a Felon and Aiding and Abetting, 1 count of Possession of a Stolen Firearm and Aiding and Abetting, and 1 count of Possession of a Firearm by a Felon.

On February 3, 2014, MCRAE pled guilty to the Hobbs Act Robbery, Brandishing a Firearm During a Federal Crime of Violence, and to the Carjacking charge. 

According to the investigation, MCRAE, armed with afirearmand his co-conspirator, Gregory James Burgess previously sentenced to 168 month imprisonment on April 18, 2014, entered the Little Vegas Sweepstakes, an internet gaming business located in Fayetteville, which is now closed.  MCRAE and Burgess forced two victims from one room into another.   MCRAE and Burgess tied them up with computer and telephone cords and took the customer’s truck.

At his arrest about a week later for these crimes, MCRAE was found to be in possession of a handgun and ammunition.

This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.

Investigation of this case was conducted by the Fayetteville Police Department, the Hope Mills Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).  Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.

NEW BERN – July 9, 2014 – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Louise W. Flanagan sentenced the final two defendants of a six-defendant federal prescription pill distribution conspiracy.  THOMAS FRANCIS PARADIS, 34, of Kinston, NC, was sentenced to 58 months’ imprisonment, followed by three years of supervised release and ordered to pay a $1,000 fine.  JESSE LEE HOOD, 26, of Goldsboro, NC, was sentenced to 69 months’ imprisonment, followed by three years of supervised release and ordered to pay a $2,000 fine.

Mr. Walker stated, “Prescription drug abuse is a serious problem and my office will continue to prosecute these cases aggresively.  This case is the result of outstanding cooperation between local, state, and federal law enforcement agencies who worked tirelessly to bring these defendants to justice.”

On July 8, 2014, CASEY RYAN O’QUIN, 31, of New Bern, NC, was sentenced to 100 months’ imprisonment, followed by 3 years of supervised released while his wife, CHRISTIAN NICOLE O’QUIN received a sentence of 95 months’ imprisonment followed by 3 years of supervised release on June 3, 2014.  The O’QUINs were further ordered to forfeit $33,662 that was seized during a traffic stop on February 1, 2012.

CHRISTOPHER GERALD CHERICO, 26, of Sneads Ferry, NC, was sentenced on April 2, 2014, to 44 months’ imprisonment followed by three years of supervised release and JOSHUA ALAN ILEY, 23, of Longview, TX, was sentenced on November 7, 2013, to 30 months’ imprisonment followed by three years of supervised release.

All of the above defendants pled guilty to conspiring to distribute and possess with the intent to distribute Oxycodone.  Investigation revealed that while CASEY O’QUIN and JESSE HOOD were incarcerated together in late 2010, HOOD explained to O’QUIN how to forge prescriptions utilizing a computer, printer, and specialized paper.  Following their release from prison in the spring of 2011, HOOD, along with CASEY O’QUIN and his wife NICOLE O’QUIN, began to create and pass fraudulent prescriptions across Eastern North Carolina until HOOD’s arrest on unrelated charges in South Carolina.  While HOOD was incarcerated in South Carolina, the O’QUINs recruited PARADIS, CHERICO, ILEY and others as accomplices to assist them in filling the prescriptions they created at pharmacies across North Carolina.  After being released from prison in South Carolina, HOOD returned to North Carolina and renewed his participation in the scheme.

PARADIS, CHERICO and ILEY were taken into custody after being identified by law enforcement passing fraudulent prescriptions.  HOOD and the O’QUINs were arrested as a result of controlled purchases conducted by law enforcement.  At the time of their arrest, the O’QUINs were found to be in possession of $33,662, and three motor vehicles, all of which were seized by law enforcement.

In total, law enforcement was able to identify at least 137 fraudulent prescriptions that were filled at pharmacies in 23 counties across North Carolina as a part of this conspiracy, resulting in the distribution of over 16,000 Oxycodone pills.

District 3B District Attorney Scott Thomas said, “Illegal possession and distribution of prescription pain pills is a major threat. It leads to addiction, theft, violence, injury and even death. Law enforcement agencies and prosecutors are working together at the local, state and federal levels to fight these crimes.  Every drug dealer sentenced to prison results in fewer pills in our communities.  We will continue to conduct investigations and prosecutions targeting these offenders who engage in these activities.”

Investigation of this case was conducted by the Cape Carteret Police Department, Carteret County Sheriff’s Office, Cary Police Department, Craven County Sheriff’s Office, Greenville Police Department, Havelock Police Department, Holly Ridge Police Department, Jacksonville Police Department, Naval Criminal Investigative Service, New Bern Police Department, Onslow County Sheriff’s Office, Pamlico County Sheriff’s Office, Pitt County Sheriff’s Office, State Bureau of Investigation, Surf City Police Department, and the Wayne County Sheriff’s Office.  Special Assistant United States Attorney Augustus Willis represented the government and was assisted in this case by Special Assistant United States Attorney Glenn Perry.  Mr. Willis is a prosecutor with the District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties, while Mr. Perry is a prosecutor with the District 3-A District Attorney’s Office serving Pitt County.  District Attorneys Scott Thomas and Kimberly Robb have assigned them to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.  Their positions are funded through a grant provided by the Governor’s Crime Commission.

In addition to the District Attorney’s Offices of Districts 3-A and 3-B, the prosecution of this matter was also assisted by the District Attorney’s Offices of Districts 4-B (Duplin, Jones, Onslow and Sampson) and 10 (Wake).

NEW BERN – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Louise W. Flanagan sentenced JAMMEE DUCHEA TERRY , 22, of Henderson to a total of 125 months imprisonment, followed by 3  years of supervised release.

TERRY was named in an Indictment filed on March 21, 2013, charging him with one count of Possession of Ammunition by a Felon, two counts of Possession of a Firearm and Ammunition by a Felon, and two counts of Possession of a Stolen Firearm and Ammunition.  On July 17, 2013, TERRY pled guilty to the Possession of Ammunition by a Felon and two counts of Possession of a Firearm and Ammunition by a Felon. 

According to the investigation, on January 17, 2013, TERRY entered a gas station in Henderson and while exiting the store, he attempted to strike another customer in the back of the head.  Terry then pulled out a loaded firearm and struck the victim in the head.  The victim immediately exited the store and began to flee; however, TERRY ran after himanddischarged the firearm approximately ten times and struck the victim in the foot.  

On February 13, 2013, officers with the Henderson Police Department, located firearms in the trunk of a car in Henderson that TERRY hadplaced inside the vehicle.  At least one of the guns was stolen.

On February 18, 2013, Terry was charged with another firearm by felon charge for a firearm that TERRY had in the car that he was driving.  Officers from the Henderson Police Department detained TERRY and a passenger in the vehicle. Officers had received complaints that TERRY had pointed a firearm at an adult female, her boyfriend, and her infant in another car. 

This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.

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

WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced EZEKIEL DONJA GARDNER, 33,of Snow Hill, North Carolina, to 262 months in prison followed by 5 years of supervised released for possession of firearm by a convicted felon.  GARDNER was convicted during a jury trial on October 15, 2013.    

On January 13, 2011, the Farmville Police Department stopped a car being driven by GARDNER after receiving information from an informant that GARDNER was in possession of a firearm.  Officers found a 9 millimeter pistol in the car after GARDNER admitted to having a firearm underneath the driver’s seat.  GARDNER was prohibited from possessing the firearm due to his prior state felony convictions, including three counts of common law robbery, three counts of breaking and entering, assault with a deadly weapon inflicting serious injury and malicious conduct by a prisoner.  GARDNER’S sentence was enhanced under the provisions of the Armed Career Criminal Act based on these convictions. 

The investigation of this case was conducted by the Farmville Police Department, 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.

RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, before Chief United States District Judge James C. Dever III, a jury convicted, Thomas L. Kimmel, 68, of Conspiracy, Mail Fraud, and Money Laundering.

KIMMEL was named in an Indictment filed on August 21, 2013. Assistant United States Attorneys David A. Bragdon and Evan Rikhye represented the government.  Mr. Bragdon stated: “Kimmel used his professed spirituality and position of trust as a tool to defraud victims at their churches-the very places they felt the most safe.” 

At trial, the Government presented evidence that KIMMEL solicited about $20 million for Sure Line Acceptance Corporation from investors.  Most of these investors found out about Sure Line through financial conferences that KIMMEL gave at churchesrelating to Biblical principles of finance and getting out of debt.  Most of the victims never received any of their principal back.  KIMMEL would typically spend a few minutes of each conference telling investors about a 12% collateralized note program.  Many of these presentations were recorded, and the Government presented evidence that Kimmel’s statements about Sure Line were false and that the collateralized note program was a Ponzi scheme.  The jury heard testimony from three conspirators who had previously pled guilty to Conspiracy and Sale of Unregistered Securities; James Willis Kirk, Jr., Glen E. Smith, Jr., and Carol April Graff.  The jury also heard testimony from about fifteen victims.

Investigation of this case was conducted by the Federal Bureau of Investigation, the Internal Revenue Service, and the Postal Inspection Service. Assistant United States Attorneys David A. Bragdon and Evan Rikhye prosecuted the case.

NEW BERN – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Louise W. Flanagan sentenced DAQUIAN DEMARD NICHOLSON , 24, of Raleigh to a total of 120 months imprisonment, followed by 3  years of supervised release.

NICHOLSON was named in an Indictment filed on March 21, 2013, charging him with Possession of a Firearm with an Obliterated Serial Number and Possession of a Firearm and Ammunition by a Felon.  On August 15, 2013, NICHOLSON pled guilty to these charges. 

According to the investigation, on November 5, 2010, in Henderson, North Carolina, a Confidential Informant (CI) bought a firearm from Nicholson, and another person.  The firearm had an obliterated serial number.

On February 18, 2013, officers from the Henderson Police Department conducted a traffic stop of a vehicle driven by Jammee Terry due to earlier information that Terry had a firearm and that he was prohibited from having a firearm. Officers detained Terry and NICHOLSON, the passenger of the vehicle. Officers seized a loaded Glock 9-millimeter handgun from under the driver's seat, and a loaded Lorcin 9-millimeter handgun from under the passenger's seat.

Terry is scheduled for sentencing during the Court’s July 8th term of court in New Bern, North Carolina.

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

NEW BERN – United States Attorney Thomas G. Walker announced today that in federal court on June 3, 2014, United States District Judge Louise W. Flanagan sentenced WILLIAM FERNANDO CARPIO , 37, to 37 months imprisonment, to be followed by 3 years of supervised release and ordered him to pay restitution to the United States Government in the amount of $1,012,875.06.

CARPIO was named in a Criminal Information filed on July 26, 2013 charging him with Larceny of Government Property, in violation of Title 18, United States Code, Section 641.  On February 21, 2014, CARPIO pled guilty to that charge. 

According to the investigation, between March 2012 and February 2013, CARPIO embezzled property belonging to the United States.  Investigators seized $354,180.40 from an account controlled by CARPIO.  In February, 2013, law enforcement was tipped off that CARPIO, then a Gunnery Sergeant in the United States Marine Corps, was mailing suspicious packages using a non-local return address.  Further investigation revealed CARPIO, who had supervisory responsibility over military supplies at the New River Air Station, was engaged in large scale embezzlement of government property which he sold to businesses over the internet.

Investigation of this case was conducted by the Naval Criminal Investigative Service and the Defense Criminal Investigative Service.  Special Assistant United States Attorney Mark Griffith prosecuted the case.

RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge Malcolm J. Howard sentenced MICHAEL ANTHONY COWARD, 28, of Greenville, North Carolina, to 235 months imprisonment followed by 20 years supervised release.  The court also imposed a $5,000 fine. 

On May 15, 2013, a Federal Grand Jury returned a Criminal Indictment charging COWARD.  On February 10, 2014, COWARD pled guilty to distributing child pornography, in violation of Title 18, United States Code, Sections 2252(a)(2).

According to the investigation, in late September, 2011, law enforcement initiated an investigation after an undercover agent identified a computer advertising to share what was suspected to be files of child pornography through a peer-to-peer sharing program.  In October, 2011, the undercover agent downloaded 105 still images and 15 videos containing child pornography from the identified computer.  Using the Internet Protocol (IP) address, the subscriber was identified and a search warrant was obtained and executed at COWARD’s residence.  Forensic examination of the computer belonging to COWARD revealed that 31,531 images of child pornography had been received and stored on the computer. 

Additionally, COWARD has been convicted in state court for Second Degree Sexual Exploitation of a Minor and Indecent Liberties with a Child in December, 2012.

The criminal investigation of this case was conducted by the Greenville Police Department, the Pitt County Sheriff’s Office and ICAC Unit of the NCSBI. 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 today IKE SIMMONS, 38, of Fayetteville, North Carolina, pled guilty before Senior United States District Judge W. Earl Britt to manufacturing child pornography, in violation of Title 18, United States Code, Sections 2252(a) and (d). A Federal Grand Jury returned a Criminal Indictment returned on January 21, 2014.  

According to the investigation, in July, 2013, the mother of the victim contacted law enforcement reporting that her ex-husband had been molesting her 16-year-old daughter since 2009.  SIMMONS was arrested and three computer hard drives, along with his Iphone was seized.  Computer forensics later performed on the hard drive revealed that SIMMONS had videotaped the molestation using his cellphone and then transferred the videos to the hard drives.

SIMMONS is a previously convicted sex offender stemming from a 2003 conviction.

At sentencing, set for September 8, 2014, SIMMONS faces a minimum of 15 years imprisonment and up to a maximum of 30 years imprisonment.  If it is determined that he has had prior convictions related to sexual abuse, abusive sexual conduct with a minor, or an offense related to child pornography or sex trafficking of children, he faces a minimum of 35 years and a maximum term of imprisonment up to life.

The criminal investigation of this case was conducted by the Cary Police Department, the Apex Police Department, and the Fayetteville Police Department. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.

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

RALEIGH - United States Attorney Thomas G. Walker announced that MARVIN ANTHONY BLANGO, 20, of Vanceboro, CLIFFORD EARL HORTON, III, 20, of Bayboro, ANTONIO RAY STEVENS, 24, of New Bern, DEMARCUS DEON DRIGGERS, 21, of Raleigh and DIQUAN ANTOINE BELL, 20, of Bayboro were each sentenced resulting from their earlier guilty pleas to robbery and firearms charges. The charges involved a string of robberies of hotels and a robbery of a federal firearm licensee in December 2012. The businesses victimized were the Best Western Riverside Inn and Suites and Hampton Inn in New Bern; the Hilton Garden Inn in Raleigh; and the Glenburnie Coin & Pawns in New Bern.

On November 19, 2013, BLANGO pled guilty to the theft of firearms from federal firearms licensee and aiding and abetting, interference with commerce by threats or violence and aiding and abetting, and using or carrying a firearm during a crime of violence and aiding and abetting. On May 21, 2014, BLANGO was sentenced to 162 months imprisonment followed by 5 years of supervised release and was ordered to pay $5,981.86 in restitution. On September 30, 2013, HORTON and STEVENS pled guilty to theft of firearms from a federal firearms licensee and aiding and abetting, interference with commerce by threats or violence and aiding and abetting, and using or carrying a firearm during a crime of violence and aiding and abetting. On January 17, 2014, HORTON and STEVENS were sentenced for these offenses. HORTON was sentenced to 171 months imprisonment followed by 5 years of supervised release and was ordered to pay $5,981.96 in restitution. STEVENS was sentenced to 180 months imprisonment followed by 5 years of supervised release and ordered to pay $5,840.86 in restitution. On September 30, 2013, DRIGGERS pled guilty to the interference with commerce by threats or violence and aiding and abetting, and to using or carrying a firearm during a crime of violence and aiding and abetting. On January 17, 2014, DRIGGERS was sentenced to 126 months imprisonment followed by 5 years of supervised release and was ordered to pay $141.00 in restitution. On September 30, 2013, BELL pled guilty to the interference with commerce by threats or violence and aiding and abetting. On January 17, 2014, BELL was sentenced to 70 months imprisonment followed by 3 years of supervised release and was ordered to pay $141.00 in restitution.

This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.

Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Bern Police Department, the Craven County Sheriff’s Office, the Raleigh Police Department, North Carolina State Bureau of Investigation, and the New Hanover County Sheriff’s Office.

RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, before Chief United States District Judge James C. Dever III, HILDA PARKER , 57, of Goldsboro, North Carolina, entered a guilty plea to wire fraud.

According to information in the public record, Hilda Parker owned and operated Parker Products, which operated as a broker of goods for the Defense Logistics Agency (“DLA”).  Between April 2007 and December 2007, Parker Products was awarded 217 purchase orders valued at $346,508.26 under a streamlined fast-pay purchase system.  With respect to 29 of the 217 purchase orders (total value of $128,983.45), Parker Products failed to deliver the goods ordered. HILDA PARKER, however falsely verified via wire shipment of the goods and received payments in connection with those 29 purchase orders.   Because of the fast-pay purchase system, DLA made payment on the verification rather than actual receipt of the goods ordered.

Some of the items ordered through HILDA PARKER d/b/a/ Parker Products, Inc. were mission critical (e.g., a valve for a Navy ship leaving for Iraq or first aid kits for deployed marines).  This resulted in the degradation of operational readiness for a number of military units.

The maximum penalty that PARKER faces at sentencing is twenty years imprisonment, a $250,000.00 fine and restitution.

The criminal investigation of this case was conducted by Defense Criminal Investigation Service.  Assistant United States Attorney Banumathi Rangarajan is handling the prosecution of the case.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today before Chief United States District Judge James C. Dever, III, MARK HENRY TKAC, 49, of Raleigh, was sentenced to a 42 month term of imprisonment, followed by 5 years of supervised release, on a charge of Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 1349.  TKAC was also ordered to pay $1,612,612.94 in restitution.

Assistant United States Attorney William M. Gilmore stated, “This case reaffirms the commitment of this office to hold accountable those who knowingly used their expertise in the real estate industry for their own fraudulent gain in the midst of the mortgage bubble of the 2000’s.  I commend the IRS Criminal Investigation for its perseverance to see these offenders brought to justice, despite the passage of time since the height of the mortgage crisis.”

Daniel D. Burget, Acting Special Agent in Charge, IRS Criminal Investigation stated, "Every year, fraudulent schemes victimize individuals and businesses from many walks of life, including struggling low income families lured into loans they cannot afford and legitimate lenders are saddled with over inflated mortgage loans.  This investigation shows IRS Criminal Investigation’s commitment to not allowing those responsible to gain financially from their fraud."

Count One of the Criminal Information charged that between August of 2006 and May of 2008, TKAC was a licensed real estate broker who worked in the Wake County area.  TKAC had knowledge of the rules and regulations of the mortgage industry.  Nevertheless, TKAC participated with others, including developer David Lewis Johnson, developer Arthur Lee Barnes, mortgage broker Mark Thomas Bowe, and attorney Jeffrey Scott Taggart, in a real estate flipping scheme which defrauded various banks and lenders.  Johnson, Barnes, Taggart, and Bowe were previously sentenced to prison for their roles in the scheme. 

The mortgage fraud conspiracy in which TKAC became a member involved convincing individuals, referred to as “straw buyers,” to allow their name and credit to be used to secure mortgage loans in return for a kickback from the loan proceeds.  The straw buyers lacked the financial means to service the debt on the loans acquired in their names.  The straw buyers also did not have a long-term interest in the properties that TKAC and others purchased in their names.  TKAC and other coconspirators recruited straw buyers under the guise that they were participating in an investment plan.

TKAC participated in the conspiracy first by acting as a straw buyer, and later recruiting others to serve as straw buyers for Johnson and Barnes.  TKAC, Johnson, and Barnes arranged for straw buyers to execute a contract to purchase a home for an inflated price.  TKAC, Johnson, and Barnes then directed the straw buyers to attorney Taggart to close the transactions.  Taggart prepared false HUD-1 settlement statements for execution by the straw buyers as a part of the real estate closing and loan funding process.  Taggart then caused the false HUD-1 settlement statements to be transmitted via mail and wire to banks and mortgage lenders, including FDIC regulated financial institutions, under the pretense that they reflected the economic truth of the underlying transaction.

In fact, however, the HUD-1 settlement statements prepared by Taggart as a part of the scheme routinely contained false statements that were material to the lenders' funding decisions including the existence and degree of the buyer's down payment, as well as kickbacks to the buyers and other conspirators.  TKAC and other conspirators generally received several thousand dollars in kickbacks from each fraudulent transaction closed by Taggart.

The various banks and mortgage lenders who issued loans related to the mortgage fraud scheme were deceived by the use of straw buyers, in addition to the foregoing false and fraudulent statements made by TKAC, and other co-conspirators in connection with the loan closings.

Ultimately, borrowers defaulted on many of the transactions brokered by TKAC, resulting in substantial losses to various banks and lenders. 

On May 24, 2012, TKAC was named in a one-count Criminal Information charging TKAC with Conspiracy to Commit Mail, Wire, and Bank Fraud.  TKAC pleaded guilty to the charge on the same date.

Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation.  Assistant United States Attorney William M. Gilmore represented the United States.

RALEIGH - United States Attorney Thomas G. Walker announced that today, United States District Judge Terrence W. Boyle sentenced PHYLLIS STALLINGS HARRELL and PAUL LYNN TRUEBLOOD, both of Belvidere, North Carolina.  HARRELL was sentenced to 72 months imprisonment followed by 3 years of supervised release and was also ordered to pay restitution in the amount of $1,598,356.91.  TRUEBLOOD was sentenced to 53 months imprisonment followed by 3 years of supervised release and ordered to pay restitution in the amount of $1,516,654.21.       

Both HARRELL and TRUEBLOOD pled guilty on November 14, 2013 to Count 1 of the Second Superseding Indictment which charged them with Conspiracy to Commit Health Care Fraud and Wire Fraud, in violation of Title 18, United States Code, Section 1349.

“This health care provider and her son abused the trust of taxpayers by billing the government for more than $1.5 million ambulance services that they didn’t perform.  This case underscores for health care providers that if you commit Medicare and Medicaid fraud, you should expect a lengthy stay in federal prison,” stated U.S. Attorney Walker.

Count 1 of the Second Superseding Indictment alleges that between January of 2004 and December of 2009, HARRELL and TRUEBLOOD conspired to defraud Medicare, Medicaid, and private insurers in connection with various billings for alleged non-emergency ambulance transportation services in the area of Elizabeth City.  The Indictment alleges that HARRELL, the mother of TRUEBLOOD, billed Medicare and Medicaid through Harrell Medical Transport, a company owned by HARRELL and operated by HARRELL and TRUEBLOOD.  The indictment further alleges that TRUEBLOOD operated a wheelchair van transportation company that transported Medicare and Medicaid beneficiaries to routine medical appointments on a weekly basis.  The Indictment alleges that although patients were transported in wheelchair vans, HARRELL and TRUEBLOOD billed Medicare and Medicaid through Harrell Medical Transport as though the trips had occurred in an ambulance.  Medicare and Medicaid do not pay wheelchair van providers for wheelchair van transportation.  The Indictment alleges that HARRELL and TRUEBLOOD fabricated and caused to be fabricated information in medical records to make it appear as though the patients had traveled by ambulance.  The Indictment also alleges that HARRELL and TRUEBLOOD caused employees of Harrell Medical Transport to omit material information in medical records concerning the ability of patients to walk and ride in wheelchairs, which affects whether Medicare and Medicaid will pay for ambulance transportation.

"Ambulance transportation companies that make fraudulent claims by providing unnecessary services or misrepresenting to Medicare and Medicaid about the services they provide will instead have to answer to the government for their misdeeds," said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Region".

During the investigation of the case, the United States Attorney’s Office, with the assistance of the United States Department of Health and Human Services, the North Carolina Attorney General’s Office – Medicaid Investigations Division, and the Federal Bureau of Investigation, seized several hundred thousand dollars in assets held by HARRELL and TRUEBLOOD.  Seized assets included various ambulances and other vehicles, as well as the contents of various bank and investment accounts.  During court today, United States District Judge Terrence W. Boyle ordered forfeiture with respect to these assets and other assets contained in the superseding indictment.

The investigation of this case was conducted by the United States Department of Health and Human Services Office of the Inspector General, the North Carolina Department of Justice's Medicaid Investigations Division, the North Carolina Department of Health and Human Services Division of Medical Assistance, and the Federal Bureau of Investigation.  Assistant United States Attorney William M. Gilmore and Special Assistant United States Attorney John Parris prosecuted the case for the Economic Crimes Division of the United States Attorney's Office.

GREENVILLE – United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge Malcolm J. Howard sentenced WALLACE EDWIN PERRY, JR., 28, of Raleigh, North Carolina, to 188 months imprisonment followed by 15 years of supervised release.

A Criminal Information was filed on December 9, 2013, charging receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2).  On February 10, 2014, PERRY pled guilty to the charge.  

According to the investigation, in February, 2012, Cary Police Department initiated an investigation related to the peer-to-peer sharing of child pornography.  From February, 2012, to August, 2012, an undercover agent identified a computer offering to share files containing child pornography.  A search warrant was obtained and executed in September, 2012.  Computer forensics revealed over 20,000 images of child pornography.

The criminal investigation of this case was conducted by the Cary Police, the Raleigh Police Department and the Federal 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 today TIMOTHY JACK STRICKLAND, 42, of Mount Olive, North Carolina, pled guilty before United States District Judge Terrence W. Boyle to being in receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2). A Federal Grand Jury returned a Criminal Indictment on February 18, 2014.  

According to the investigation, in March, 2013, while attending training, a Federal Bureau of Investigation Task Force Officer engaged in a chat with STRICKLAND, who it was determined later, was a Pentecostal minister.  During the chat the agent observed that STRICKLAND’s directory contained child pornography files.  A search warrant was later executed at STRICKLAND’s home, where a laptop, several hard drives and other media devices were seized.  Computer forensics revealed approximately 11,000 images of child pornography.   

At sentencing, set for August 18, 2014, STRICKLAND faces up to 20 years imprisonment.  If it is determined that he has had prior convictions related to sexual abuse, abusive sexual conduct with a minor, or an offense related to child pornography or sex trafficking of children, he faces up to 40 years imprisonment.

The criminal investigation of this case was conducted by the Federal 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.

WASHINGTON – Jeffrey Wayne Scott, 48, of Wilmington, North Carolina, pleaded guilty to tax evasion in Raleigh, North Carolina, the Justice Department and Internal Revenue Service (IRS) announced today.  Scott was indicted on Nov. 25, 2013, for five counts of personal income tax evasion and one count of filing a false corporate tax return.  He pleaded guilty to one count of willfully attempting to evade his personal income tax for tax year 2007.

According to court documents and court proceedings, Scott has owned and operated Greenville Loop Seafood (GLS), a seafood distribution company located in Wilmington, since 1995.  For tax years 2006 through 2010, Scott and his wife filed joint individual income tax returns.  Scott provided his return preparer with handwritten summaries of gross receipts and categorized expense items for the wholesale and retail fish distribution businesses as well as tax documents provided by financial institutions.  Scott, under penalty of perjury, reported that his taxable income for these five years ranged between $23,934 and $92,999, and paid only $91,800 in federal income taxes for this time period.  During these five years, however, the Scotts spent far in excess of this reported taxable income on personal expenditures.

According to court documents and court proceedings, between 2006 and 2010, the Scotts paid for nearly all of their living expenses with checks from GLS.  This included, among other things, utilities, insurance premiums, landscaping, home improvements, school fees and a country club membership.  They also purchased five vehicles totaling more than $200,000, a $100,000 boat and a $2.1 million waterfront home.  Scott also made a monthly transfer of $10,000 from GLS’ business account into a personal brokerage account.  After the purchase of their home in June 2009, Scott stopped transferring funds to the brokerage account, but instead used funds from GLS’ business account to pay the mortgage and related expenses.  Through a bank deposit and expenditure analysis, the IRS calculated that Scott failed to report taxable income for these five years in excess of $1,151,642 and owed at least $390,678 in additional taxes.  For the 2007 tax year, Scott failed to report $328,754 in taxable income with an additional tax due and owing of $113,967.

According to court documents and court proceedings, when first contacted by IRS-Criminal Investigation agents in June 2011, Scott falsely stated that he was letting friends stay in his second home rent free.  Furthermore, despite being aware that he was under criminal investigation, in November 2012, Scott filed a false 2011 GLS corporate income tax return claiming the painting of his personal residence, repair work by a plumber at his personal residence, and health bills related to his family dog as business expenses.

Chief U.S. District Judge James C. Dever III scheduled the term of court to begin Aug. 18, 2014.  Scott faces a statutory maximum prison term of five years and a maximum fine of $250,000.

This case was investigated by special agents of IRS-Criminal Investigation.  Assistant U.S. Attorney Susan B. Menzer and Trial Attorney Todd A. Ellinwood of the Justice Department’s Tax Division are prosecuting the case.

RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, JOHN LOUIS LEWANDOWSKI, 51, pled guilty before United States Magistrate Judge James E. Gates to receipt of child pornography and possession of child pornography, in violation of Title 18, United States Code, Sections 2252(a)(2) and 2252(a)(4)(B), during his arraignment.

On December 17, 2013, a 15-Count Indictment was filed charging LEWANDOWSKI with these violations.

According to the investigation, after LEWANDOWSKI was determined to be a customer of a company which sold pornographic videos of children, a search was executed at his home. LEWANDOWSKI admitted to the searching agents that they would find both videos he had ordered from the company and delivered him by mail, and other child pornography which he had downloaded from the internet. Forensic review of the materials seized revealed numerous videos and images of child pornography.
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At sentencing, LEWANDOWSKI faces a minimum of 5 years and up to 20 years imprisonment on each of the fourteen counts of receipt of child pornography, and up to 20 years on the count charging possession of child pornography. If he has had prior convictions relating to aggravated sexual abuse, sexual abuse, abusive conduct involving a minor or ward, sex trafficking of children, or the production, receipt, possession, sale, distribution, shipment, or transportation of child pornography, the penalty increases to up to a minimum of 15 years to 40 years imprisonment on the fourteen counts of receipt of child pornography, and a minimum of 10 years and up to 20 years imprisonment on the count charging possession of child pornography.

Investigation of this case was conducted by the United States Postal Inspection Service, United States Department of Homeland Security, and the North Carolina State Bureau of Investigation.

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 announces that a federal grand jury in Wilmington, North Carolina returned a 14 count indictment charging CEDRIC SHARROD WILLIAMS, DERRICK LAMONT HANNON, HERMAN LEE COLEY, III, MARY SHANTA ELLIS, JERRY KEITH PITTMAN, JR., JOSEPH LAMAR NORRIS, and ALONZO KEITH CARTER with conspiring to distribute and to possess with the intent to distribute heroin, a Schedule I controlled substance, in violation of the provisions of Title 21, United States Code, Sections 841(a)(1) and 846.  Additionally, WILLIAMS is charged with 3 counts of knowingly  possessing a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c)(1)(A).

Mr. Walker remarked, “This investigation shows that local and federal law enforcement are committed to investigating and prosecuting heroin trafficking in Rocky Mount, NC.”

"We are committed to interrupting and apprehending the individuals that distribute heroin in Rocky Mount," stated Chief James Moore.

The investigation revealed that beginning on a date unknown and continuing until or about February 3, 2014, these individuals conspired with one another to distribute large quantities of heroin from New Jersey to Rocky Mount, NC.

If convicted, the maximum penalties for the charged drug counts are not more than 40 years imprisonment, a $5 million fine, and a term of supervised release of not less than 4 years, following any term on of imprisonment.  The maximum penalties for the charged gun counts are not less than 25 years of imprisonment, consecutive to any other sentence imposed, a $250,000 fine, and up to 5 years supervised release following any term of imprisonment. 

The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty in a court of law.  The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Rocky Mount Police Department, and the Nash County Sheriff’s Office.

RALEIGH – United States Attorney Thomas G. Walker announced that in federal court today, PAUL FANTZ, 31, pled guilty before Senior United States District Judge W. Earl Britt to receipt of child pornography, in violation of Title 18, United States Code, Section 2252(a)(2), during his arraignment.

On March 5, 2014, a Criminal Information was filed charging FANTZ with the violation. 

According to the investigation, FANTZ was seen attempting to videotape a child in the men’s restroom at the North Carolina State Fair in October, 2013.  He was stopped and questioned by Wake County Sheriff deputies.  After admitting to the violation, FANTZ was placed under arrest and a search warrant was obtained for his IPhone and laptop.  Forensic examination revealed at least 100 videos of boys urinating.  Another 100 videos were discovered of child pornography on the laptop.

At sentencing, scheduled for September 8, 2014, FANTZ faces up to 20 years imprisonment.  If he has had prior convictions relating to aggravated sexual abuse, sexual abuse, abusive conduct involving a minor or ward, sex trafficking of children, or the production, receipt, possession, sale, distribution, shipment, or transportation of children pornography, the penalty increases to up to 40 years imprisonment.

Investigation of this case was conducted by the Wake County Sheriff’s Office and the Federal Bureau of Investigation.  Assistant United States Attorney Ethan Ontjes 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.

RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, before United States District Judge Terrence W. Boyle, HOMER LEWIS BLACKBURN , 27, of Atlantic Beach, North Carolina, entered a guilty plea to making false distress calls to the United States Coast Guard.

According to information in the public record, on October 8, 2013, Coast Guard Sector North Carolina received a “MayDay” call in which the caller claimed he was sinking and abandoning his boat in the vicinity of Cape Lookout and Shackleford Banks, North Carolina.  Upon receipt of the distress call, the U.S. Coast Guard, assisted by the U.S. Marine Corps, the National Park Service and a local salvage company commenced search and rescue operations using helicopters and boats to search the area.  Ultimately, the Coast Guard determined that the call was a hoax, but not until after $288,390.80 worth of resources were expended.

Shortly thereafter, Coast Guard Investigative Service (“CGIS”) began an investigation and received information from a witness who identified the caller as HOMER LEWIS BLACKBURN and confirmed it was a hoax.  The witness stated that BLACKBURN used a CB radio he mounted to the balcony of his apartment in Atlantic Beach, North Carolina to make the call.  She heard him saying,“Mayday, Mayday” and that he was sinking in the vicinity of Cape Lookout, NC.  She then told officers that BLACKBURN went out to the balcony to watch the helicopters search Cape Lookout.  When the press reported that the call was a hoax, BLACKBURN sent the witness a text message on her phone asking her not to tell anyone about the call.

During the investigation, another witness came forward and claimed that BLACKBURN bragged about making the hoax calls, BLACKBURN admitted he reported that he was sinking off Cape Lookout, and that he, BLACKBURN, thought the calls were funny.

BLACKBURN subsequently confessed to making the hoax calls.

"False distress calls limit the Coast Guard's ability to respond to actual emergencies," said Captain Sean Murtagh, commander of Sector North Carolina. "Ultimately, they penalize the local communities and mariners the Coast Guard is charged to protect by unnecessarily endangering the lives of responders and wasting hundreds of thousands of tax payer dollars.  Through the vigilance of the public, our strong partnerships with the Department of Justice, the U.S. Attorney's Office, and our Coast Guard Investigative Service, this case affirms our collective commitment to holding accountable those individuals who make hoax calls."

The maximum penalty that BLACKBURN faces at sentencing is six years imprisonment, a $250,000.00 fine and restitution of all costs incurred by the Coast Guard.

The search and rescue efforts were led by United States Coast Guard – 5th District and Coast Guard Sector North Carolina.  The criminal investigation of this case was conducted by the United States Coast Guard Investigative Service.  Assistant United States Attorney Banumathi Rangarajan is handling the prosecution of the case.

RALEIGH – United States Attorney Thomas G. Walker announced that United States District Judge Terrence W. Boyle signed a consent order resolving a civil lawsuit between the United States and Four Oaks Bank and Trust of North Carolina.  The civil complaint alleged that the bank facilitated an illegal scheme to take money from consumers’ bank accounts.

"The integrity of our banking system is crucial to the protection of both consumers and businesses, and we will do whatever is necessary to ensure that banks, payday lenders and others using the banking system follow the rules," said U.S. Attorney for the Eastern District of North Carolina Thomas G. Walker. 

Advocates at the National Consumer Law Center (NCLC) stated, “The Four Oaks case is a perfect example of what the Justice Department should be doing: cracking down on banks that turn a blind eye to illegal and fraudulent conduct and facilitate illegal payday lending, Ponzi schemes, money laundering for illegal gambling operations, and consumer fraud,” said Lauren Saunders, NCLC’s associate director.

The Complaint alleged that, from at least July 2009 through 2013, Four Oaks Bank knew of, or was deliberately ignorant to, the use of its accounts and access to the national banking system to further a scheme to defraud consumers.  Four Oaks Bank, like all other banks, is obligated pursuant to federal statutes and regulations to have effective procedures to prevent the bank from providing to companies engaged in unlawful activity access to the national banking system.  According to the Complaint, Four Oaks Bank failed to comply with these and other obligations and, as a consequence, facilitated a wire fraud scheme in which millions of unauthorized debit transactions were charged against consumers' bank accounts.

According to the department's Complaint, Four Oaks Bank worked with a Texas-based third-party payment processor, which is a "middle man" between a bank and a merchant in a financial transaction.  Payment processors provide to a wide variety of merchants access to the national payment system.  At a merchant's direction, a payment processor will originate a debit transaction against an individual consumer's bank account, receive the consumer's money into its own bank account and transmit the money to its merchant's client.  In this case, Four Oaks Bank provided payment system access to a Texas-based third-party payment processor, which in turn provided that access to fraudulent merchants.  

According to the Complaint, Four Oaks Bank permitted the Texas-based third-party payment processor to originate more than 9.8 million debit transactions, for a total of more than $2.4 billion, against consumers' bank accounts.  The Justice Department alleged that Four Oaks Bank ignored guidance by federal bank regulators concerning the risks associated with providing payment system access to a third-party payment processor that serviced fraudulent merchants.  Allegedly, these third-party payment processor's merchants included large numbers of Internet payday lenders that engaged in fraud against borrowers.

To resolve the civil action, Four Oaks Bank and the Department of Justice entered into a Consent Order, in which Four Oaks Bank will be required to pay $1 million to the U.S. Treasury as a civil monetary penalty and to forfeit $200,000 to the U.S. Postal Inspection Service's Consumer Fraud Fund.  Four Oaks Bank also will be required to comply with a series of measures to prevent it from ever again permitting fraudulent merchants access to the national payment system.  Specifically, Four Oaks Bank will be permanently prohibited from providing banking services to any third-party payment processor that serves high risk merchants absent a strict regime of prior and ongoing investigation and monitoring designed to prevent future consumer fraud.  Four Oaks Bank also will be required to cooperate fully in other civil and criminal investigations.

This case was prosecuted jointly by the Department of Justice Consumer Protection Branch and the United States Attorney for the Eastern District of North Carolina.  The investigation is part of the Consumer Protection Branch's initiative to identify and prosecute banks and payment processors that facilitate financial fraud in the national payment systems, an effort in which the U.S. Postal Inspection Service provides substantial investigative support.

WILMINGTON – United States Attorney Thomas G. Walker announced that today, a federal grand jury in Wilmington, North Carolina returned a multi-count indictment charging KELVIN MELTON, a/k/a Dizzy, Old Man, 49, QUANTAVIOUS THOMPSON, a/k/a QUAN, KIRKWOOD QUAN, 18 or 19, JAKYM CAMEL TIBBS, a/k/a JOK, JAK, 20, TIANNA DANEY MAYNARD, a/k/a TIANNA DANET MAYNARD, TIANNA DANET SOLOMON, TIANNA BROOKS, AXT UP, ACT UP, 30, JENNA MARTIN, a/k/a JENNA PAULIN MARTIN, 21, CLIFTON JAMES ROBERTS, a/k/a YEELO, CJ, YEE, KING YEE, ELO, 29, PATRICIA ANN KRAMER, a/k/a TRISH, TRISHA, 28, JEVANTE PRICE, a/k/a JEVANTE TRAVELL PRICE, FLAME, 20, and MICHAEL MARTRELL GOODEN, a/k/a Hot, MICHAEL MONTREAL GOODEN, MICHAEL MARTREE GOODEN, 21, with Conspiracy to Commit Violations of the Kidnaping Statute.  Count Two charges MELTON, KRAMER, PRICE, and GOODEN with Attempted Kidnaping and Aiding and Abetting the Same.  Count Three charges MELTON, PRICE, and GOODEN with Using and Carrying a Firearm During and in Relation to Attempted Kidnaping and Aiding and Abetting the Same.  Count Four charges MELTON, THOMPSON, TIBBS, MAYNARD, MARTIN, ROBERTS, PRICE, and GOODEN with Kidnaping and Aiding and Abetting the Same.  Count Five charges MELTON, THOMPSON, TIBBS, and MAYNARD with the Use, Carrying, and Brandishing a Firearm During and in Relation to, and Possessing a Firearm in Furtherance of, a Kidnaping and Aiding and Abetting the Same.

If convicted on the Conspiracy to Commit Kidnaping charge, all the defendantsface a maximum penalty of life imprisonment and a $250,000 fine.

The case is being investigated by the FBI Charlotte, FBI Atlanta, the Wake Forest Police Department, the North Carolina State Bureau of Investigation with assistance by the Durham County Sheriff’s Office, Raleigh Police Department, Durham Police Department, North Carolina Alcohol Law Enforcement, Garner Police Department, North Carolina Highway Patrol, RDU Police, City County Bureau of Investigation, the Cobb County Police Department, Alpharetta Police Department, Atlanta Police Department, and the Georgia Bureau of Investigation. The United States Attorney’s Office for the Eastern District of North Carolina is handling the prosecution of these cases.

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

Click on link for attached indictment.

RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced GREGORY JAMES BURGESS , 28, of Fayetteville to 168 months imprisonment, followed by 3 years of supervised release.

BURGESS was named in an Indictment filed on April 13, 2013, charging him with six counts.  The Indictment charged Hobbs Act Robbery, brandishing a firearm during and in relation to a crime of violence, carjacking, using and carrying firearms during and in relation to a crime of violence, felon in possession of firearms, and possession of a stolen firearm.  On June 5, 2013, BURGESS pled guilty to the Hobbs Act Robbery, carjacking, and using and carrying firearms during and in relation to a crime of violence charges. 

According to the investigation, BURGESS and his co-conspirator, entered the Little Vegas Sweepstakes, an internet gaming business located in Fayetteville, which is now closed.  BURGESS and his co-conspirator forced two victims at gunpoint from one room into another.  BURGESS punched one victim in the face.  BURGESS pilfered though the office of Little Vegas Sweepstakes and the cash register.  He took $1,000 from the cash register, along with an employee’s wallet and $90 lying on the office desk.  BURGESS struck a customer in the back of the head with a firearm after the victim stated he didn’t know where the keys to his vehicle were located.  BURGESS pulled a video camera from the office ceiling and attempted to locate the surveillance tape.  BURGESS and his co-conspirator fled the scene in a truck that they stole from one of the victims inside the store.

This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.

Ivestigation of this case was conducted by the Fayetteville Police Department, the Hope Mills Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).  Assistant United States Attorney S. Katherine Burnette prosecuted the case for the government.

RALEIGH – United States Attorney Thomas G. Walker announced that two more defendants were charged with Conspiracy to Kidnap in violation of Title 18, United States Code, Section 1201(c), in connection with the kidnapping of Frank Arthur Janssen of Wake Forest, North Carolina.  These two new charges are in addition to the six already charged with engaging in a conspiracy to seize, kidnap, and abduct Frank Janssen from Wake Forest, North Carolina and transport him to Atlanta, Georgia.  Janssen is the father of a Raleigh, North Carolina prosecutor who prosecuted a Blood member in state court.

Mr. Walker stated, “My office will continue to pursue everyone involved with this crime.  This deliberate attack on our judicial system cannot be tolerated.”

According to the investigation, Blood member Kelvin Melton, a/k/a Dizzy, a/k/a Old Man, 49, used a cell phone that he illegally possessed while serving a life sentence in North Carolina’s  Polk Correctional Institution in Butner, to transmit instructions and threats to Mr. Janssen’s wife and to co-conspirators in the plot.  Specifically, Melton gave instructions on how to kill Mr. Janssen and dispose of his body.  Mr. Janssen was taken from his home against his will on April 5, 2014.  Through a coordinated effort involving many federal, state, and local law enforcement agencies, the FBI’s Hostage Rescue Team rescued Mr. Janssen at 11:55 pm on April 9, 2014 at a residence in Southeast Atlanta.  The two new charges are against JAKYM TIBBS and JOHN DOE, a/k/a “Quan”, a/k/a “Kirkwood Quan”.  The others already charged with kidnapping in this case are Jenna Paulin Martin, 21, Tiana Maynard, a/k/a Tiana Brooks, 30, Jevante Price, a/k/a Flame, 20, Michael Montreal Gooden, a/k/a Hot, 21, and Clifton James Roberts, 29.   These five had their detention hearings in Atlanta yesterday and all were ordered held without bond.  Jenna Paulin Martin and Tiana Maynard waived their probable cause hearings and will be extradited to North Carolina.  It is of note that Mr. Janssen’s daughter is a state prosecutor who prosecuted Melton in Raleigh, North Carolina.  This investigation is ongoing.

If convicted of this charge, each defendant faces a maximum sentence of life imprisonment and a fine of up to $250,000.

A complaint contains allegations that a defendant has committed a crime.  Every defendant is presumed innocent until and unless proven guilty in court.

The case is being investigated by the FBI Charlotte, FBI Atlanta, the Wake Forest Police Department, the North Carolina State Bureau of Investigation with assistance by the Durham County Sheriff’s Office, Raleigh Police Department, Durham Police Department, North Carolina Alcohol Law Enforcement, Garner Police Department, North Carolina Highway Patrol, RDU Police, City County Bureau of Investigation, the Cobb County Police Department, Alpharetta Police Department, Atlanta Police Department, and the Georgia Bureau of Investigation. The United States Attorney’s Office for the Eastern District of North Carolina is handling the prosecution of these cases with assistance from the United States Attorney’s Office for the Northern District of Georgia.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court on Thursday, April 10, 2014, United States District Judge Terrence W. Boyle sentenced ARTAVIOUS QUONTA BODDIE, 24, to 235 months imprisonment followed by five years supervised release.  The Court also imposed restitution in the amount of $666.00.

A Federal Grand Jury returned a Criminal Indictment on October 8, 2013.  On December 18, 2013, BODDIE pled guilty to conspiring to rob a business engaged in interstate commerce, in violation of Title 18, United States Code, Section 1951, and using and carrying a firearm during and in relation to a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A). 

According to the Indictment, BODDIE conspired to rob three businesses from February 21, 2013, to February 24, 2013. The investigation revealed that on February 21, 2014, BODDIE approached the clerk at Discount Cigarettes in Wilson, North Carolina, and while brandishing a firearm, threatened to kill the clerk if the clerk did not comply with BODDIE’s demands.  BODDIE robbed the establishment of an undisclosed amount of money, cigarettes and lottery tickets.

On February 24, 2013, BODDIE robbed the Kangaroo Express in Wilson, North Carolina of $80.  Approximately 45 minutes later, BODDIE entered Fuel Doc in Lucama, North Carolina, and stole $406.  During both of these robberies, BODDIE brandished a firearm. 

The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Wilson Police Department; the Wilson County Sheriff’s Office; the Johnson County Sheriff’s Office; and the Kenly Police Department.  Assistant United States Attorney Ethan A. Ontjes served as prosecutor on behalf of the Eastern District of North Carolina.

NEW BERN – United States Attorney Thomas G. Walker announced that yesterday in federal court, United States District Judge Louise W. Flanagan sentenced KENNETH RAY CANADY , 49, of Wilson to 94 months imprisonment, followed by 3 years of supervised release.

CANADY was named in an Indictment filed on April 24, 2012 charging him with one count of Possession with the Intent to Distribute a Quanitity of Cocaine Base in violation of Title 21, United States Code, Section 841(a)(1) and one count of Felon in Possession of a Firearm, in violation of Title 18, United States Code 922(g)(1) and 924.  On November 16, 2012, CANADY pled guilty to the Felon in Possession of a Firearm charge. 

According to the investigation, an officer from the Wilson Police Department conducted a traffic stop on January 19, 2011 of a vehicle being driven by CANADY.  A subsequent search of the vehicle resulted in the seizure of 6.7 grams of cocaine base, a .38 caliber revolver, and $5,298 in U.S. currency.  CANADY was previously convicted of a felony and he is prohibited from possessing a firearm.

This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.

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

NEW BERN – United States Attorney Thomas G. Walker announced that yesterday in federal court, United States District Judge Louise W. Flanagan sentenced JOHN PAUL SMITH , aged 48, of Whiteville, North Carolina to 24 months imprisonment, followed by 3 years of supervised release.

SMITH was sentenced after pleading guilty to committing mail fraud, in connection with a scheme to defraud Murphy Brown, LLC, which is the Warsaw, North Carolina, based pork production subsidiary of Smithfield Foods. 

In 2008, SMITH, who was a farmer and grain broker operating in Whiteville, North Carolina, entered into a business relationship with Murphy Brown, LLC, whereby he served as a grain broker, purchasing corn and soybeans from local farmers for Murphy Brown’s hogs.  Under the terms of their agreement, local farmers from whom SMITH purchased corn and soybeans were to make deliveries to SMITH’s grain elevator in Whiteville.  In turn, Murphy Brown would take delivery of corn and soybeans from SMITH’s Whiteville grain elevator. 

Over the course of their business relationship, Murphy Brown discovered unexplained shrinkage in their supplies of corn and soybeans that SMITH had allegedly purchased on their behalf. 

Evidence presented to the Court established that SMITH began “shorting” Murphy Brown with respect to the corn and soybeans that he had been purchasing for the company.  Essentially what SMITH did was charge Murphy Brown for corn and soybeans which he never delivered to them.  The Court found that, from 2010 and 2011, SMITH purloined 38,645 bushels of soybeans worth approximately $387,000.00 and corn worth approximately $735,000.00 that was paid for by Murphy Brown, but never delivered to them.  This amounts to over 200 truckloads of grain.  The Court also found that Murphy Brown suffered a “hedging loss” in the amount of approximately $375,000.00.  By the time Murphy Brown realized that a substantial amount of its corn was missing, the price of corn had increased, and the company was forced to replace it at a higher market value. 

SMITH has been ordered to report to prison no later than July 15, 2014. 

The case was investigated by the Federal Bureau of Investigation (FBI) and the North Carolina State Bureau of Investigation (SBI).  Assistant U.S. Attorney Evan Rikhye handled the prosecution of this case on behalf of the Eastern District of North Carolina.

RALEIGH – United States Attorney Thomas G. Walker announced that today KELVIN MELTON, a/k/a Dizzy, a/k/a Old Man, was charged with conspiring to kidnap Frank Arthur Janssen of Wake Forest, North Carolina, in violation of Title 18, United States Code, Section 1201(a).

According to the investigation, MELTON and others engaged in a conspiracy to seize, kidnap, and abduct Frank Janssen from Wake Forest, North Carolina and transport him to Atlanta, Georgia.   MELTON used a cell phone that he illegally possessed while serving a life sentence in the Polk Correctional Institution in Butner, North Carolina to transmit instructions and threats to Mr. Janssen’s wife and to co-conspirators in the plot.  Specifically, MELTON gave instructions on how to kill Mr. Janssen and dispose of his body. If convicted of this charge, MELTON facesa maximum sentence of life imprisonment and a fine of up to $250,000.

A complaint contains allegations that a defendant has committed a crime.  Every defendant is presumed innocent until and unless proven guilty in court.

The case is being investigated by the FBI Charlotte, FBI Atlanta, the Wake Forest Police Department, the North Carolina State Bureau of Investigation with assistance by the Durham County Sheriff’s Office, Raleigh Police Department, Durham Police Department, North Carolina Alcohol Law Enforcement, Garner Police Department, North Carolina Highway Patrol, RDU Police, City County Bureau of Investigation, the Cobb County Police Department, Alpharetta Police Department, Atlanta Police Department, and the Georgia Bureau of Investigation. The United States Attorney’s Office for the Eastern District of North Carolina is handling the prosecution of these cases.

RALEIGH – United States Attorney Thomas G. Walker announced that today five defendants were charged with Conspiracy to Kidnap in violation of Title 18, United States Code, Section 1201(c), in connection with the kidnapping of Frank Arthur Janssen of Wake Forest, North Carolina.

JENNA PAULIN MARTIN, 21, TIANA MAYNARD, a/k/a TIANA BROOKS, 30, JEVANTE PRICE, a/k/a FLAME, 20, MICHAEL MONTREAL GOODEN, a/k/a HOT, 21, and CLIFTON JAMES ROBERTS, 29, were all charged with kidnapping.  These five individuals are in federal custody at this time.

According to the investigation, Mr. Janssen was taken from his home against his will on April 5, 2014.  Through a coordinated effort involving many federal, state, and local law enforcement agencies, the FBI’s Hostage Rescue Team rescued Mr. Janssen at 11:55 pm on April 9, 2014 at a residence in Southeast Atlanta.  If convicted of this charge, each defendant faces a maximum sentence of life imprisonment and a fine of up to $250,000.

A complaint contains allegations that a defendant has committed a crime.  Every defendant is presumed innocent until and unless proven guilty in court.

The case is being investigated by the FBI Charlotte, FBI Atlanta, the Wake Forest Police Department, the North Carolina State Bureau of Investigation with assistance by the Durham County Sheriff’s Office, Raleigh Police Department, Durham Police Department, North Carolina Alcohol Law Enforcement, Garner Police Department, North Carolina Highway Patrol, RDU Police, City County Bureau of Investigation, the Cobb County Police Department, Alpharetta Police Department, Atlanta Police Department, and the Georgia Bureau of Investigation. The United States Attorney’s Office for the Eastern District of North Carolina is handling the prosecution of these cases.

GREENVILLE - United States Attorney Thomas G. Walker announced that today, FELIX A. OKAFOR, 53, of Benson, North Carolina, was sentenced by Senior United States District Judge Malcolm J. Howard to 3,157 months (approximately 263 years) and 6 years of supervised release.  OKAFOR was convicted of 25 drug and firearms offenses including conspiracy to distribute 100 grams of heroin and 100 kilograms of marijuana, four counts of distribution of marijuana, six counts of distribution of heroin, distribution of drugs within 1000 feet of a school, and 11 counts of possession of a firearm during a drug trafficking crime.

During a four day trial that concluded on July 11, 2013, the government presented evidence that between on or about November 8, 2011, through on or about January 11, 2012, OKAFOR sold various quantities of marijuana and heroin multiple times to a confidential informant at the defendant’s convenience store, the Flying Eagle, in Benson, North Carolina.  OKAFOR possessed a gun in his pocket during each of these transactions.  Additionally, the defendant used the Flying Eagle to cut and package the drugs to sell. The store was within 1000 feet of Benson Middle School. 

This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, and local agencies to cooperate in a unified “team effort” against gun crime, targeting repeat offenders who continually plague their communities.

Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives the North Carolina State Bureau of Investigation, the Johnston County Sheriff’s Office and North Carolina Alcohol Law Enforcement (ALE). Assistant United States Attorney Ethan A. Ontjes prosecuted the case.

RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, United States District Judge Terrence W. Boyle sentenced ROBERT LOWELL CASSIDY , 58, of Morrisville to 84 months imprisonment, followed by 7 years of supervised release and was ordered to pay a $10,000.00 fine.

CASSIDY was named in a Criminal Information filed on October 18, 2013 charging him with Receipt of Child Pornography, in violation of Title 18, United States Code, Section 2252(a)(2).  On November 26, 2013, CASSIDY pled guilty to that charge. 

According to the investigation, an undercover officer identified a computer belonging to CASSIDY that was involved with the distribution of online child pornography.  A search warrant was executed on CASSIDY’s residence on April 27, 2013 and a computer, several hard drives, and multiple storage devices were seized.  A complete forensic examination of CASSIDY’s computer equipment revealed 4,571 still images and 475 video files (475 videos x 75 images = 35,625 images) depicting the sexual exploitation of children.

Investigation of this case was conducted by the Morrisville Police Department and the Federal Bureau of Investigation.  Assistant United States Attorney Ethan Ontjes 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.

GREENVILLE – United States Attorney Thomas G. Walker announced that today in federal court, JAMES EDWARD TRAVIS was sentenced by Senior United States District Judge Malcolm C. Howard to 60 months of imprisonment and 3 years of supervised release.  He was also ordered to pay $422,302.65 in restitution and forfeiture was also ordered.  On December 9, 2013 TRAVIS pled guilty to a Criminal Information charging him with demanding, seeking, and accepting bribes, in violation of Title 18, United States Code, Sections 201(b)(2)(A) and (B), and to theft of government property in violation of Title 18, United States Code, Sections 641 and 2.

United States Attorney Walker reflected, “Public corruption such as this defendant’s criminal conduct undermines our nation’s reconstruction efforts overseas and dishonors the sacrifice our military makes every day.”

According to the Criminal Information filed on November 13, 2013, and information presented in open court, JAMES EDWARD TRAVIS was a Sergeant First Class in the United States Department of the Army assigned to the Operational Detachment-Bravo for Alpha Company, 4th Battalion, 3rd Special Forces Group for a wartime deployment to Afghanistan.  Between January 3, 2012, and October 4, 2012, TRAVIS was deployed to Afghanistan, working out of Forward Operating Base Sharana.  During his deployment, TRAVIS acted as both a paying agent and a contracting officer representative.   As a contracting officer representative, TRAVIS was responsible for, among other things, approving completion of contracts and then approving payments.   TRAVIS was also in charge of contracting for cargo vehicles or “jingle trucks” to move supplies and equipment as well as small construction projects.  TRAVIS accepted kickbacks from various vendors on a “quid pro quo” basis for various contracts.  The kickbacks ranged from $4,000 to $7,000 per contract.  TRAVIS solicited the help of a DOD civilian contractor to get the bribe monies back to the United States.  When, during the course of the investigation, TRAVIS was questioned by law enforcement regarding the source of the cash, heinitially lied and claimed that the cash was gambling winnings.  TRAVIS also asked the DOD contractor to lie to law enforcement if questioned.

In addition, TRAVIS, another U.S. soldier, and a local Afghan worked together to steal fuel from FOB Sharana in Afghanistan.  On multiple occasions, TRAVIS paid the other soldier to escort an Afghan driver to the fuel point on FOB Sharana, to load fuel into the Afghan’s tanker truck, and to escort the driver with the stolen fuel back off FOB Sharana.  Agents determined that 182,815 gallons of fuel were stolen.  Based on an average price of $2.31/gallon for JP-8 fuel, the loss from the fuel theft scheme to the government is estimated at $422,302.65.

In a letter to the Court, Brigadier General Darsie D. Rogers reflected, “Special Forces units’ successes in Afghanistan are based on trust, cooperation, and mutual respect with our Afghan counterparts and the Afghan people.  We pride ourselves in our ‘quiet professionalism.’  SFC Travis’ actions were anything but professional.  He disgraced not only US Army Special Forces, but all Soldiers who served honorably in Afghanistan.”

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."

“American servicemen and women face dangerous situations every day; their lives should not be put at risk by fellow soldiers working for their own profit.  James Edward Travis stole thousands of dollars meant to support efforts in Afghanistan, but he could not hide his crimes from the FBI and our military partners dedicated to upholding justice,” said John Strong, Special Agent in Charge of the FBI in North Carolina.

“Theft of fuel in a war zone is serious.  Not only does it rob US taxpayers and damage the reconstruction effort, stolen fuel can also wind up in the hands of insurgents bent on harming Americans.  There must be zero tolerance for this kind of crime -- and SIGAR is dedicated to ensuring that anyone engaging in this activity will face justice,” commented Special Inspector General for Afghanistan Reconstruction John F. Spoko.

The case was investigated by the Defense Criminal Investigation Service, the Office of the Special Inspector General for Afghanistan Reconstruction, the United States Army Criminal Investigation Command, and the Federal Bureau of Investigation.  Assistant U.S. Attorney Banumathi Rangarajan handled the prosecution of this case on behalf of the Eastern District of North Carolina.

NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge W. Earl Britt sentenced Ernest Joshon Wright, 27, of Greenville, North Carolina, to 78 months of imprisonment and      3 years of supervised release.  WRIGHT previously pled guilty to possession of firearm by a felon and conspiracy to distribute and possess with intent to distribute quantities of cocaine, oxycodone, methadone, and marijuana.   

The Greenville Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives used a confidential informant to make the following controlled purchases of narcotics from WRIGHT in 2012:  cocaine on August 29 and September 27; marijuana on October 9 and October 23; and oxycodone on November 1.  During the investigation WRIGHT began negotiating a purchase of four firearms, including a fully automatic assault rifle, from the confidential informant. On November 5, 2012, the confidential informant was provided with four “prop” firearms with firing pins removed.  After WRIGHT took possession of the four firearms, agents executed search warrants and recovered two additional firearms and methadone pills.  WRIGHT was prohibited from possessing the firearms due to his prior felony convictions of discharging a weapon into occupied property, attempted common law robbery and possession of firearm by a felon.

The Organized Crime Drug Enforcement Task Force (OCDETF) Operation "No Quarter" was designed to attack the infrastructure of the Mexican Drug Trafficking Organizations (DTO), including those of the Los Zetas, La Familia, Gulf and Sinaloa drug cartels, operating not only in the Eastern District of North Carolina, but throughout North Carolina, the United States and Mexico.  These DTO's are responsible for the importation of large quantities of cocaine, marijuana, heroin, and methamphetamine into the United States, as well as the related remittance of illegal drug proceeds back into Mexico. 

The investigation spanned ten years and five North Carolina counties. As part of the investigation, over 100 individuals have been charged by indictment or criminal information in the Eastern District of North Carolina and state courts. Law enforcement officials seized drugs with a street value $4.6 million, including  127 kilograms of cocaine, 53 pounds of crystal methamphetamine, 160 pounds of marijuana, and 32 grams of heroin.  Additionally, $2.2 million in U.S. Currency, 35 firearms and 35 real properties valued at $1.5 million were seized by law enforcement authorities.

Investigation of this case was conducted by the Drug Enforcement Administration (DEA) - Raleigh and Greensboro Resident Offices, the New York Field Division and numerous other DEA offices in the United States and Mexico;  the Internal Revenue Service - Criminal Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Raleigh and Wilmington offices; the United States Marshals Service; the United States Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) - Raleigh and Tampa, Florida offices; the North Carolina State Bureau of Investigation; the North Carolina National Guard; the North Carolina State Highway Patrol; the Greenville Police Department; the Pitt County Sheriff's Office; the Pamlico County Sheriff's Office; the Lenoir County Sheriff's Office; the Craven County Sheriff's Office; the Carteret County Sheriff's Office; the Beaufort County Sheriff's Office; the New Bern Police Department, the Wayne County Sheriff's Office; the Person County Sheriff's Office; the Farmville Police Department; the Goldsboro Police Department; the Rocky Mount Police Department; the Burlington Police Department, the Alamance County Sheriff's Office, and the Wilson Police Department.

The federal prosecutions were handled by Special Assistant United States Attorneys Glenn Perry and Augustus Willis, IV.  Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office.  Mr. Willis is a prosecutor with the Carteret, Craven and Pamlico Counties District Attorney’s Office.  District Attorneys Kimberly Robb and Scott Thomas have assigned Mr. Perry and Mr. Willis to the United States Attorney’s Office to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters. Their assignments to the United States Attorney’s Office have been made possible by grants funded by the Governor’s Crime Commission.

NEW BERN - United States Attorney Thomas G. Walker announced that yesterday afternoon in federal court United States District Judge Louise W. Flanagan sentenced MAMADOU SALIEU BARRIE, 34, to serve a total of 54 months in prison, followed by 3 years of supervised release, on charges of Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A, and Possession of Fifteen or More Unauthorized Access Devices, in violation of Title 18, United States Code, Section 1029(a)(3).  BARRIE was also ordered to make restitution to victims.

According to the Indictment and information provided to the Court at sentencing, BARRIE was a participant in a wide-ranging and ongoing credit card and cigarette trafficking scheme.  The purpose of the scheme is to use stolen credit card account information to purchase large quantities of cigarettes in North Carolina which are resold on the black market in New York and other states.  To carry out the scheme, participants acquire stolen credit card data on the internet and other locations, and encode the stolen data onto the magnetic strip of what appear to be legitimate gift or credit cards.  Managers in the scheme then distribute the cards to “runners” who travel to various gas stations, convenience stores, and grocery stores located around the state where they purchase dozens of cartons of cigarettes at a time using the counterfeit gift and credit cards.  The runners return the cigarettes to the managers in the scheme, who pay the runners a kickback and supply them with more counterfeit cards.  The managers periodically make trips to New York where they sell the cigarettes on the black market for cash.

On April 30, 2011, BARRIE was arrested on state charges after a search of his Raleigh apartment turned up 92 fraudulently re-encoded gift cards and 106 cartons of cigarettes.  Several months later, on January 3, 2012, BARRIE was arrested again during a traffic stop, at which time he was found in possession of 33 gift cards that had been re-encoded with stolen credit card data.  The investigation also uncovered that BARRIE caused another person to rent a storage unit in her name.  A search of that Raleigh storage unit uncovered a magnetic card encoding device, 32 cartons of cigarettes, and another 20 re-encoded credit cards.

During questioning by law enforcement, BARRIE admitted to receiving counterfeit cards and storing cigarettes for others involved in the scheme.  He further admitted to renting the storage unit containing the card encoding device in connection with the scheme.

BARRIE was indicted by a federal grand jury sitting in the Eastern District of North Carolina on January 3, 2013.  On August 15, 2013, BARRIE pled guilty to Counts 1 and 3 of the Indictment, which charged him with Aggravated Identity Theft,  and Possession of Fifteen or More Unauthorized Access Devices.

At the sentencing hearing, over BARRIE’s objections, Judge Flanagan adopted findings by the United States Probation Office that 92 individuals and 18 banks were victimized as a result of BARRIE’s conduct.

The investigation of the ongoing scheme described above continues.  Anyone with knowledge of the scheme should contact the United States Secret Service in Raleigh at (919) 855-1052.

Investigation of BARRIE’s case was conducted by the United States Secret Service, with the assistance of the Raleigh Police Department, the New Bern Police Department, and the Kinston Police Department.  Assistant United States Attorney William M. Gilmore represented the United States.

RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, Senior United States District Judge W. Earl Britt, sentenced MARDOQUEO MEJIA FAJARDO and JORGE ERNESTO TINOCO to more than 4 years incarceration and ordered them to pay restitution of approximately $1.4 million to the United States Department of Treasury for their participation in a conspiracy to file false claims for IRS refunds.        

According to the charging document, both these men are citizens of the Republic of Honduras and were illegally residing in the United States.  From June 2011 to March 2013, FAJARDO and TINOCO conspired with others to defraud the United States by filing fraudulent income tax returns with the Internal Revenue Service.  These returns were filed under the Individual Taxpayer Identification Number program, which was initiated for resident and nonresident aliens to file returns and pay the taxes they owed.  The returns filed by members of this conspiracy were fictitious.  Wage and tax statements were fabricated to make it appear that the named taxpayers worked for legitimate companies, earning income and paying taxes.  The refund checks were directed to Post Office boxes in eastern North Carolina that were opened in the name of fictitious individuals with fraudulent forms of identification.

IRS-Criminal Investigation Special Agent in Charge, Jeannine A. Hammett said, “We are committed to the pursuit of those who undermine the federal tax system by filing fraudulent returns claiming refunds.  These two defendants sought to enrich themselves by essentially stealing from all of us who pay our taxes honestly.”

This was a joint investigation conducted by the Internal Revenue Service – Criminal Investigation, the Department of Homeland Security and the United States Postal Inspection Service.  Assistant United States Attorney Susan Menzer is prosecuting the case for the government.

RALEIGH - United States Attorney Thomas G. Walker announced that today in federal court today, Senior United States District Judge W. Earl Britt sentenced CRYSTAL D. DICKENS, age 25, of Rocky Mount, North Carolina, to 35 months imprisonment, followed by 3 years of supervised release.  DICKENS was also ordered to pay restitution in the amount of $652,413.00.

DICKENS was named in a Criminal Information filed on August 29, 2013, charging her with filing a false, fictitious, and fraudulent 2009 tax refund claim with the Internal Revenue Service, in violation of Title 18, United States Code, Section 287.  On September 30, 2013, DICKENS pled guilty to the charge.

According to the investigation, DICKENS was a tax return preparer and manager at the main office of the now-defunct Hill's Tax Service (HTS) in Rocky Mount, North Carolina. (HTS was owned and operated by Larry D. Hill, Jr.  Hill was sentenced to 100 months imprisonment on February 4, 2014 for related tax crimes).  Between 2010 and 2012, DICKENS prepared and filed hundreds of false and fraudulent federal income tax returns for HTS customers, resulting in estimated tax losses to the government of approximately $1 million.  The false reporting information, which included bogus interest and household help income, was intended to trigger inflated refund claims through the manipulation of the earned income tax credit (EITC).  As part of the scheme, DICKENS paid herself for her "services" by netting cash payments from the fraudulent refund proceeds.

“Crystal Dickens thought she could steal from the United States Treasury,” said Jeannine A. Hammett, Special Agent in Charge, IRS-CI “Today the defendant learned she will serve 35     months in prison for her fraud. Others involved in similar schemes should take heed.”

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

RALEIGH – United States Attorney Thomas G. Walker announced that today in federal court, SARAH ASHLEY ROGERS, 22was sentenced by Senior United States District Judge W. Earl Britt to 96 months imprisonment, followed by 3 years of supervised release and was ordered to pay restitution in the amount of $1,388,145.29.  On September 19, 2013, ROGERS pled guilty to one count of Involuntary Manslaughter in violation of Title 18, United States Code, Section 1112, and one count of Driving While Impaired in violation of Title 18, United States Code section 13, assimilating North Carolina General Statute 20-138.1.

The investigation revealed that in the early morning hours of December 8, 2012 ROGERS was stopped at an impaired driving checkpoint on Bragg Boulevard operated by Fort Bragg Law Enforcement.  The officers immediately noticed extensive front end damage to the car, including what appeared to be blood and brain matter embedded in the shattered windshield.  As they approached ROGERS, police noticed that both airbags in the car had recently deployed.  When they approached the car, ROGERS stated that she “may” have hit something.   A breathalyzer test was administered to ROGERS and the intoximeter calculated her blood alcohol concentration at .25%.  The body of Private Richard Bradley Powell was found approximately 1.4 miles from the checkpoint and he was declared dead at the scene.  Private Powell had recently finished basic training and had arrived at Fort Bragg only a few days prior. At the time he was struck by ROGERS, he was wearing his Army-issue physical training jacket, which had a reflective strip.  That night, Private Powell had left his barracks room, walked to a convenience store on Fort Bragg, purchased groceries, and walked back towards his barracks.  As he crossed over Bragg Boulevard at Gruber Road, he was struck by ROGERS who was traveling north at approximately 75 mph in a 50 mph zone and did not apply her brakes.  He was in the well-lit intersection.  Private Powell did not have any drugs or alcohol in his system.

Investigation of this case was conducted by the Fort Bragg Military Police, Fort Bragg Criminal Investigative Detachment, Fort Bragg Department of the Army Uniformed Police and the Federal Bureau of Investigation.  Assistant United States Attorney Leslie Cooley and former Special Assistant United States Attorney David Coleman prosecuted the case of the government.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today before Chief United States District Judge James C. Dever, III, MARK THOMAS BOWE, JR., 56, of Jonesboro, Georgia, was sentenced to a 42 month term of imprisonment, followed by 5 years of supervised release, on Count One of an Indictment charging BOWE with Conspiracy to Commit Bank and Wire Fraud, in violation of Title 18, United States Code, Section 1349.  BOWE was also ordered to pay $604,550.69 in restitution.

Count One of the Indictment charged that between 2003 and 2008, BOWE was a licensed mortgage broker operating through mortgage companies operating on Rock Quarry Road in Raleigh.  BOWE participated with others, including developer David Lewis Johnson, developer Arthur Lee Barnes, real estate broker Mark Henry Tkac, and attorney James Scott Taggart in a real estate flipping scheme which defrauded various banks and lenders.  Johnson, Barnes, and Taggart were previously sentenced to prison for their role in the scheme.  Tkac has not yet been sentenced.

BOWE participated in the scheme by, among other things, falsifying various aspects of loan applications that were submitted to banks and lenders to qualify buyers for mortgages related to properties sold by Johnson’s real estate company.  BOWE falsified, among other things, the amount and source of the borrower’s income and assets, the existing debts of the borrower, and the borrower’s intent to occupy the property as a primary residence.  In some instances, BOWE completed loan applications which falsely represented that the information contained within the application had been obtained from a telephonic interview when, in truth and fact, the borrower never spoke to BOWE in a telephonic interview or provided the information in the loan application.

BOWE and Johnson also promoted the scheme by deceiving and attempting to deceive lenders into believing that some borrowers held assets at an investment company, known as Mutual Southern Investments.  Bowe and another conspirator supplied false verifications of deposit and false account statements purporting to show that borrowers held, in some instances, millions of dollars in assets, when in truth and fact, Mutual Southern Investments did not exist and the assets and asset statements were entirely fictitious.

BOWE and other participants in the scheme benefitted by receiving kickbacks or payments out of the loan proceeds at the time of the loan closing.  In some instances, BOWE received payments in excess of the amounts identified on the HUD-1 settlement statements that were supplied to the banks and lenders to compensate BOWE for his role in the scheme.

Ultimately, the borrowers defaulted on the loans brokered by BOWE, resulting in substantial losses to various banks and lenders.  At sentencing, stipulated losses from various loans brokered by BOWE were found to total $604,550.69.

On April 4, 2013, BOWE was named in a four-count Indictment filed by the Grand Jury in the Eastern District of North Carolina.  On August 26, 2013, BOWE pleaded guilty to Count One which charged him with Conspiracy to Commit Bank and Wire Fraud.

Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation.  Assistant United States Attorney William M. Gilmore represented the United States.

RALEIGH – The United States Attorney’s Office announces that in federal court yesterday Chief United States District Judge James C. Dever III sentenced former attorney AMY ROBINSON, 36, of Rolesville, to 18 months imprisonment followed by 3 years of supervised release.  The Court further ordered ROBINSON to make restitution of $2,613,046.37 to various banks and other victims.

The Criminal Information and other evidence showed that between 2002 and 2006, James Thomas Webb(previously sentenced to 237 months in prison) was operating a company identified as Alpine Properties, LLC. Webb promised investors that he and Alpine Properties would use investor money to purchase homes at a low value, renovate the homes, and then sell them to first-time home buyers for a higher value.  During that time period, ROBINSON was a licensed North Carolina attorney who closed real estate transactions for Webb and his investors.

Evidence established that ROBINSON and Webb systematically falsified the HUD-1 settlement statements associated with numerous sales of properties from Alpine Properties to Webb’s investors.  The HUD-1s contained numerous false statements and misrepresentations, including the amount of money the borrower brought to closing, the payment of closing funds to secondary, prior lien holders, and the amount of money actually paid to Webb.  Each HUD-1 also contained a false certification by Webb and ROBINSON that the settlement statements were true and accurate reflection of all receipts and disbursements made by or on behalf of the parties to the transactions.  ROBINSON transmitted the false documents to the lenders and banks by mail and wire.  The banks and lenders relied upon the statements in issuing loans for the sale of properties from Webb’s companies to his investors.

Ultimately, after the collapse of Alpine Properties, many of the loans on the properties went into default, resulting in millions in losses to various banks and lenders.  At the sentencing, the Court held ROBINSON accountable for $2,613,046.37 in losses and ordered ROBINSON to make restitution to the victims of the offense.

ROBINSON pleaded guilty on May 3, 2010 to Conspiracy to Commit Wire, Mail, and Bank fraud, in violation of Title 18, United States Code, Section 371.

Investigation of this case was conducted by the Federal Bureau of Investigation, the United States Postal Inspection Service, the United States Department of Housing and Urban Development Office of the Inspector General, and the Federal Deposit Insurance Corporation Office of the Inspector General, with the assistance of the North Carolina State Bar.  Assistant United States Attorney William M. Gilmore represented the United States.

RALEIGH – United States Attorney for the Eastern District of North Carolina Thomas G. Walker and North Carolina Attorney General Roy Cooper announced jointly that Duke University Health System, Inc. (Duke University Health System) has agreed to pay $1 million to resolve allegations under the U.S. and North Carolina False Claims Acts that it made false claims in conjunction with certain services provided to beneficiaries of Federal health care programs (Medicare, Medicaid, and TRICARE). 

Duke University Health System is a non-profit corporation that operates three hospitals: (1) Duke University Hospital, (2) Duke Regional Hospital (formerly known as Durham Regional Hospital), and (3) Duke Raleigh Hospital (formerly known as Duke Health Raleigh Hospital).  Duke University Health System allegedly made false claims to Medicare, Medicaid, and TRICARE by (1) billing the government for services provided by physician assistants (PA’s) during coronary artery bypass surgeries when the PA’s were acting as surgical assistants (along with graduate medical trainees), which is not allowed under government regulations and (2) increasing billing by unbundling claims when the unbundling was not appropriate, specifically in connection with cardiac and anesthesia services.   

“Allegations of health care fraud will be zealously pursued in North Carolina,” said U.S. Attorney Thomas G. Walker.  “We encourage our citizens to report potential health care fraud to the appropriate authorities.  Duke Univesity Health System was forthcoming with information, and was cooperative in the investigation and resolution.”

“Health care fraud like this wastes tax dollars, harms patients who need care, and drives up medical costs for all of us,” said North Carolina Attorney General Roy Cooper.  “We’re working closely with federal officials to root out this kind of fraud in North Carolina and make wrongdoers pay.”

"Hospitals that try to make profit by misrepresenting to Medicare and Medicaid about the services they provide will instead pay large settlements to the government for their misdeeds," said Derrick L. Jackson, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Atlanta Region. "If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at HHSTips@oig.hhs.gov."

“The DCIS, in concert with our law enforcement partners, places a high priority on pursuing allegations of fraud involving the Defense Department’s health care system, to ensure that America’s Warfighters receive top quality health care, while preserving precious taxpayer dollars,” said John F. Khin, Special Agent in Charge, Southeast Field Office, Defense Criminal Investigative Service.

The allegations resolved by this settlement arose from a whistleblower lawsuit filed under the False Claims Act by Leslie Johnson, a former employee of Duke PRMO, LLC d/b/a Patient Revenue Management Organization.  Duke PRMO is controlled by Duke University Hospital System, and provides billing, collection, and administrative services to Duke University Health System.

This case was handled by the United States Attorney’s Office for the Eastern District of North Carolina, the North Carolina Attorney General’s Office, Medicaid Investigations Division, the Department of Health and Human Services’ Office of Inspector General, and the Department of Defense Criminal Investigative Service.  The government’s investigation was led by Assistant U.S. Attorney Joshua B. Royster and North Carolina Assistant Attorney General Stacy M. Race.

The lawsuit is captioned United States of America and State of North Carolina ex rel. Leslie Johnson v. Duke University Health System, Inc, et al., 5:12-CV-822-BO.  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrence W. Boyle sentenced FRANKLIN WADE MEARES, 46to 96 months imprisonment followed by 10 years supervised release. 

A Federal Grand Jury returned a Criminal Indictment on June 18, 2013.On December 18, 2013, MEARES pled guilty to receipt of child pornography.

According to the investigation, on September 14, 2012, the Cumberland County Sheriff’s Office initiated an undercover investigation related to the distribution of child pornography through the use of peer-to-peer (P2P) software.  P2P software allows users to search for images, videos, and digital files by entering search terms.  During the course of the investigation, a computer was identified by its IP address as using the Gnutella P2P network and offering to share child pornography.  The IP addressed led law enforcement to MEARES and a search warrant was executed.  Forensic examination of the computer uncovered over 12,000 images depicting children under the age of 12 engaged in sexual activity.   

Investigation of this case was conducted by the Cumberland County Sheriff’s Office.  Assistant United States Attorney Ethan A. Ontjes prosecuted the case.

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.

Defendant Counts(s) Charged Disposition Sentence John Savage
5:12-CR-351-1F Counts 1, 5, 6, 7, 8, and 9 of Indictment and Counts 1 and 2 of Superseding Information 09/03/2013:
Pled guilty to Counts 1 and 2 of Superseding Information. Bureau of Prisons 300 months  on Count 1 and 60 months consecutive on Count 2 - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $200.00 - No Fine - Restitution $2,479.00 joint and several Candy Medlin
5:12-CR-351-2F 1, 5, 6, 7, and 10

03/12/2013: Pled guilty to Count 1.

Bureau of Prisons 240 months - Supervised Release LIFE - Special Assessment $100.00 - Fine $9,700.00 interest waived - Restitution $2479.00 joint and several interest waived Larry Medlin
5:12-CR-351-3F 1 and 11 07/01/2013:
Pled guilty to Count 1. Bureau of Prisons 90 months - Supervised Release LIFE - Special Assessment $100.00 - Fine $6,800.00 interest waived - No Restitution Allen Bass
5:12-CR-351-4F 1 and 12

01/28/2013: Pled guilty to Count 1.

Bureau of Prisons 113 months - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $100.00 - No Fine - No Restitution Larry Barefoot
5:12-CR-351-5F 1 and 13

03/11/2013: Pled guilty to Count 1.

Bureau of Prisons - 121 months - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $100.00 - No Fine - No Restitution J.R. Thornton
5:12-CR-351-6F 1 and 14

01/28/2013: Pled guilty to Count 1.

Bureau of Prisons 144 months - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $100.00 - No Fine - No Restitution Jamie Hunt
5:12-CR-351-7F 1, 2, and 15

03/12/2013: Pled guilty to Count 1.

Bureau of Prisons 110 months - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $100.00 - No Fine - No Restitution George Myron Adams
5:12-CR-351-8F 1, 5, 6, 7, and 16 09/03/2013:
Pled guilty to Count 1. Bureau of Prisons 188 months - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $100.00 - Fine $7,300.00 - Restitution $2,479.00 joint and several Teresa Darden
5:12-CR-351-9F 1, 3, and 17

01/28/2013: Pled guilty to Count 1.

Bureau of Prisons 240 months - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $100.00 - No Fine - Restitution $952.38 Steven McCall
5:12-CR-351-10F 1, 4, and 18 07/01/2013:
Pled guilty to Count 1. Bureau of Prisons 191 months - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $100.00 - Fine $9,900.00 interest waived - No Restitution Keith Britt
5:12-CR-351-11F 1 and 19

01/28/2013: Pled guilty to Count 1.

Bureau of Prisons 87 months - Supervised Release 5 years - Special Conditions of Release Imposed - Special Assessment $100.00 - No Fine Christina Britt
5:12-CR-351-12F 1 and 20

01/28/2013: Pled guilty to Count 1.

Bureau of Prisons 81 months - Supervised Release 5 years - Special Assessment $100.00 - No Fine - No Restitution Ryan Meyers
5:12-CR-351-13F 1 and 21 09/03/2013:
Pled guilty to Count 1. Bureau of Prisons 300 months - Supervised Release LIFE - Special Conditions of Release Imposed - Special Assessment $100.00 - No Fine - Restitution $952.38 joint and several Jackie Joyner
5:12-CR-351-14F 1 and 22

01/28/2013: Pled guilty to Count 1.

Bureau of Prisons 113 months-Supervised Release 5 years – Special Conditions of Release Imposed – Special Assessment $100.00 – No Fine –No Restitution Shannon Kidwell
5:12-CR-351-15F 1 and 23

03/11/2013: Pled guilty to Count 1.
01/09/2014: 126 months custody, 5 years supervised release

Bureau of Prisons 126 months - Supervised Release 5 years - Special Assessment $100.00 - No Fine - No Restitution Jamie Denning 1

01/28/2013: Pled guilty to Count 1 01/30/2014: 132 months custody, lifetime supervised release

Bureau of Prisons 126 months - Supervised Release 5 years - Special Assessment $100.00 - No Fine - No Restitution

RALEIGH - United States Attorney Thomas G. Walker announced the recent sentencing of a group of targets in an Organized Crime Drug Enforcement Task Force (OCDETF) prosecution focusing on methamphetamine production in Johnston, Sampson and Wayne Counties in the Eastern District of North Carolina.  The results of this indictment in the larger investigation, code named Operation SPEED BUMP, was a total of 16 convictions and the sentencing of those defendants.  This drug trafficking organization operated in Johnston, Sampson and Wayne Counties since at least 2008 and was responsible for manufacturing large amounts of domestically produced methamphetamine. 

Mr. Walker statedThese defendants created havoc on the law-abiding residents in the area by their distribution of large amounts of methamphetamine.  My office stands ready to prosecute organizations like this to the full extent of the law.”

“Meth brings violence and addiction to our communities, and North Carolina law enforcement at all levels is committed to rooting out the criminals who make and deal this dangerous drug.  We’re making a dent in North Carolina’s meth problem through cases like this one,” Attorney General Roy Cooper stated.

To date, 78 methamphetamine cooks and significant precursor purchasers have been prosecuted by the U.S. Attorney’s Office as part of Operation SPEED BUMP. In October of 2012, a grand jury in this District returned a twenty-four count indictment against sixteen individuals involved in this methamphetamine production ring.  All sixteen of those individuals have been sentenced.  Six of these individuals were from Johnston County, six were from Sampson County and four were from Wayne County.  They traveled throughout the District to buy pseudoephedrine, steal anhydrous ammonia, and cook methamphetamine.  This group is responsible for purchasing over five (5) kilograms of pseudoephedrine for the purpose of manufacturing methamphetamine and the ultimate production of almost five (5) kilos of methamphetamine.  This group possessed multiple firearms during the course of this conspiracy.

Sentences in these cases range from 81 months to 360 months imprisonment.  See the attached list of individual defendants and their sentences.  Operation SPEED BUMP is an on-going investigation into domestic methamphetamine production that has been ongoing since 2008 and has spanned at least 15 counties in the Eastern District of North Carolina to date.

The North Carolina State Bureau of Investigation Special Services Unit leads a multi-agency, collaborative effort to target methamphetamine production in the Eastern District of North Carolina.  Other agencies involved in this portion of the investigation included the Johnston County Sheriff’s Office, the Sampson County Sheriff’s Office and the Wayne County Sheriff’s Office. Assistant United States Attorney Jennifer E. Wells prosecuted the cases for the government.