Eastern District of North Carolina

Raleigh – United States Attorney Thomas G. Walker, along with the United States Justice Department, announced today that as part of its Barrier-Free Health Care Initiative, it has reached a settlement with the Fayetteville Pain Center under the Americans with Disabilities Act (ADA).  The settlement resolves allegations that the Fayetteville Pain Center violated the ADA by refusing to treat a woman because she has HIV.

The complainant, a woman with HIV who was suffering from back pain as a result of a car accident, visited the Fayetteville Pain Center in Fayetteville, North Carolina, seeking treatment.  According to the complaint, the woman was unable to obtain medical treatment because the doctor at the Fayetteville Pain Center refused to treat a person with HIV.  The ADA requires public accommodations such as doctors’ offices, medical clinics, hospitals, and other health care providers, to provide people with disabilities, including those with HIV, equal access to goods, services, and facilities.

Under the settlement, the Fayetteville Pain Center must pay $10,000 to the complainant and $5,000 to the United States in civil penalties, train its staff on the ADA, and develop and implement an anti-discrimination policy.

“All people deserve equal access to medical treatment.  People with HIV and other disabilities must not be denied health care because of their disabilities.  Medical professionals, perhaps more than anyone, should understand that the universal precautions they use when treating all patients mean no one should be excluded from treatment based on HIV,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.  “This type of discrimination will not be tolerated.”

Mr. Walker emphasized that “this settlement should also send a message to all health care providers in Eastern North Carolina that a disability cannot be a factor in determining accessibility to care and treatment.“ 

This settlement is part of the Department of Justice’s Barrier-Free Health Care Initiative, a partnership of the Civil Rights Division and U.S. Attorneys’ offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities.  The initiative was announced on the anniversary of the ADA in July 2012 and 40 U.S. Attorneys’ offices are participating.  The division expects the initiative to address access to health care for people with HIV and hearing disabilities, as well as physical access to medical facilities.  In 2012, the division and U.S. Attorneys reached two settlement agreements regarding access to medical care for people with HIV and four settlements regarding access to medical care for people with hearing disabilities.

For more information on the ADA and HIV visit www.ada.gov/aids.  Those interested in finding out more information about these settlements or the obligations of public accommodations under the ADA, including how it protects people with HIV in accessing medical care, may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov.  ADA complaints may be filed by email to ada.complaint@usdoj.gov.

Raleigh – United States Attorney Thomas G. Walker announced that in federal court today JULIO ARREOLA, 36, of Camp Lejuene, North Carolinapled guilty before Senior United States District Judge James C. Fox to demanding and seeking a bribe in violations of Title 18, United States Code, Sections 201(b)(2)(A) and (B).

U.S. Attorney Walker stated, “Corruption among staff non-commissioned officers in the military like ARREOLA’S undermines our ability to ensure that our service members in the field have the resources they need to fulfill our nation’s missions overseas.”

According to the Indictment filed on July 17, 2012 and information stated in open court, ARREOLA was a Gunnery Sergeant in the United States Marine Corps (USMC).  From in or about February, 2008, and continuing to in or about September, 2008, ARREOLA was assigned to the I Marine Expeditionary Forces Headquarters Group (I MHG), Engineer Company, at Camp Fallujah, Iraq.  During his deployment to Camp Fallujah, ARREOLA served as a non commissioned officer who supervised construction projects.  In this capacity he obtained quotes from contractors, initiated purchase orders on behalf of the U.S. Government, and oversaw the delivery of supplies.  ARREOLA would submit the quotes for approval through the military chain of command.

Sometime in or about June 2008, the exact date unknown, ARREOLA solicited a bribe from Davut Construction and Services Company, a company offering engineering, logistics, construction and life support services to the U.S. Government.  Specifically, ARREOLA told a company representative that he, ARREOLA, would recommend to the Department of Defense that various items be purchased from Davut in return for cash payments.  ARREOLA further told the representative that the cash payments could be generated from the manipulation of the contracting relationship to be established between Davut and the Department of Defense; that is, ARREOLA told the representative to generate the bribe money by having Davut inflate the costs in the proposed quote and/or deliver less than the items listed in the quote, and then give him, ARREOLA, the difference in price as a bribe. 

A sentencing hearing is scheduled for the Court’s May 13th term of court.  At sentencing, ARREOLA faces a total maximum sentence of 15 years imprisonment and/or a $250,000 fine, and 3 years of supervised release.

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."

The criminal investigation of this case was conducted by United States Defense Criminal Investigative Service and the United States Naval Criminal Investigative Service.  Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court yesterday STEVEN M. HARDWICK, 53, of Nichols, South Carolina, was sentenced by Chief United States District Judge James C. Dever III, to 12 months and one day imprisonment, restitution of $171,513, and 5 years of supervised release. HARDWICK previously pled guilty to conspiring to make false statements, to make material false statements, and to commit mail fraud and wire fraud, all in violation of Title 18, United States Code, Section 371 and aiding and abetting these crimes in connection with the Federal Crop Insurance Program, in violation of Title 18, United States Code, Section 1014.

Mr. Walker stated, “As a farmer, Hardwick understood the importance of the federal crop insurance program as a safety net to the community in times of disaster and yet, he helped another steal from that same program. The sentence imposed today reflects the seriousness of his offense and should serve as a deterrent for others.”

According to the investigation, which stems from an ongoing crop insurance investigation, HARDWICK allowed his name to be used in connection with federal crop insurance and tobacco contracts to facilitate the sale of tobacco not reported to the federal government. The Criminal Information, filed on September 16, 2011, alleges that HARDWICK, maintaining dual residences in Clarendon, North Carolina, and Nichols, South Carolina, owned and operated a sole proprietorship which engaged in the business of tree spraying and planting.

The Information goes on to allege, an unnamed farmer devised the scheme to defraud the government and recruited HARDWICK and others to act as nominee farmers, obtaining federal crop insurance policies in their own names for certain crops, even though they did not engage in any farming. From September, 2006, to June, 2010, HARDWICK and others executed applications for crop insurance for tobacco, soybeans, and peanuts, falsely declaring the crop to be their own. HARDWICK and others secured identifying information for various persons in the community, executing contracts with tobacco companies using the stolen names and identifying information. HARDWICK and other co-conspirators secured flue-cured tobacco marketing agreements in their own names even though they were not the bona fide producer of the crop. The unnamed farmer sold his tobacco and other crops on contracts written in the names of other co-conspirators or unknowing victims, profiting under the scheme by being paid twice for each pound of tobacco. HARDWICK and other co-conspirators profited under the scheme because they were paid for the use of their names on the contracts.

As discussed in open court yesterday, HARDWICK also sold tobacco not reported to the federal government for other farmers separate and apart from the conspiracy described above. HARDWICK also lied to the USDA - Farm Service Agency County Committee on two occasions in an effort to conceal the fraud.

IRS-Criminal Investigation Special Agent in Charge Jeannine A. Hammett stated, “Mr. Hardwick manipulated governmental programs to line his own pockets. The object of this fraudulent scheme was to swindle the government and the taxpaying public.” “Once again, IRS criminal investigators along with the United States Attorney’s Office have vindicated the interests of the people of the United States.”

Investigation of this case was conducted by the Internal Revenue Service - Criminal Investigation; the United States Department of Agriculture - Office of Inspector General, Investigations; and the United States Department of Agriculture - Risk Management Agency, Special Investigations Branch. Assistant United States Attorney Banumathi Rangarajan is serving as prosecutor for the government.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court on Friday, January 25, 2013 GREGORY DEVON OBEY, 28, of Smithfield, North Carolina, was convicted for his role in a drug trafficking conspiracy as well as multiple counts of distributing cocaine and crack cocaine.

On August 8, 2012, a Federal Grand Jury returned a Criminal Indictment that charged OBEY with one count of conspiring to distribute and possess with the intent to distribute 280 grams or more of crack cocaine and 5 kilograms or more of powder cocaine.  The Indictment also charged OBEY with 7 counts of distributing powder cocaine and 28 grams or more of crack cocaine from August 30, 2011, up to and including June 13, 2012.  On January 25, 2013, after a three-day trial, a jury found OBEY guilty on all counts.  Based on these convictions, OBEY faces up to a life sentence in prison.   

The evidence in the case demonstrated that from at least March 2011, up to and including June 12, 2012, OBEY and at least seven other individuals conspired to distribute crack and powder cocaine. In his statement, OBEY admitted that he had obtained over 55 kilograms of crack cocaine and over 79 kilograms of powder cocaine from his sources of supply for re-distribution.  During the investigation, seven controlled buys of cocaine and crack cocaine were conducted from OBEY, each recorded with an audio/video device. In addition, the evidence established that, upon his arrest, OBEY confessed to being a drug dealer and named approximately seven other co-conspirators with whom he had been trafficking cocaine and crack cocaine.  The evidence developed also revealed that, shortly before his arrest, OBEY threatened a witness in the case.

Investigation of this case was conducted by the Smithfield Police Department, the Johnston County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant United States Attorney Rudy E. Renfer represented the government.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today DEVON LAMAR MARION, 33, of Hope Mills, North Carolina was sentenced by Chief United States District Judge James C. Dever to 168 months imprisonment.

On August 22, 2012, MARION pled guilty to possession with intent to distribute more than twenty-eight (28) grams of cocaine base (crack), a quantity of powder cocaine and a quantity of marijuana in violation of Title 21, United States Code, Section 841(a)(1); one count of possession of a firearm in furtherance of a drug trafficking offense in violation of Title 18, United States Code, Section 924(c)(1)(A); and one count of possession of a firearm and ammunition by a felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924.

According to the investigation, MARION was a cocaine dealer in the Cumberland County, North Carolina area.  As a result of a search warrant executed at his home, MARION was foundto have drugs, a gun, and ammunition in Hope Mills, North Carolina.

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, Cumberland County Sheriff’s Office, and the Fayetteville Police Department.  Assistant United States Attorney S. Katherine Burnette prosecuted the case.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today United States District Judge Terrance W. Boyle sentenced ALEX MICHAEL LOCKLEAR, 61, of Maxton, North Carolina, to 300 months imprisonment followed by 5 years supervised release.

On October 4, 2012, LOCKLEAR pled guilty to conspiracy to distribute and possess with the intent to distribute 5 kilograms or more of cocaine and 28 grams or more of cocaine base (crack), in violation of Title 21, United States Code, Section 841(a)(1) and all in violation of Title 21, United States Code Section 846.

The evidence presented at the sentencing hearing revealed that LOCKLEAR was a significant trafficker of cocaine who from at least 2005 until the time of his arrest on August 3, 2012, was responsible for the distribution of over 185 kilograms of cocaine.

Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives, the North Carolina State Bureau of Investigation, and the Robeson County Sheriff’s Office.

WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court today Senior United States District Judge James C. Fox sentenced RASON LAMAR SPARKMAN, 31, to 115 months imprisonment followed by 3 years supervised release, and SPARKMAN was ordered to pay $7,132.52 in restitution. 

On September 4, 2012, SPARKMAN pled guilty to two counts of bank robbery, in violation of Title 18, United States Code, Sections 2113(a).

On June 27, 2011, SPARKMAN robbed the RBC Centura Bank on Ramsey Street, (now PNC Bank), in Fayetteville, North Carolina, taking $1,869.00.  The investigation revealed that SPARKMAN, approached a bank teller and demanded money.  SPARKMAN fled from the scene in a taxi cab.

On August 8, 2011, SPARKMAN robbed a Wachovia Bank on South McPherson Street in Fayetteville, North Carolina taking $4,414.45.  SPARKMAN was identified through the bank’s surveillance video and fingerprint analysis.

Investigation of this case was conducted by the Federal Bureau of Investigation and the Fayetteville Police Department.  Assistant United States Attorney S. Katherine Burnette is prosecuting the case.

Raleigh - United States Attorney Thomas G. Walker announced that in federal court today before United States District Judge Terrence W. Boyle, MEDINA K. BLANTON, 39, of Hubert, NC, was sentenced to a 1 year and one day in prison, followed by 3 years of supervised release, on the charge of Wire Fraud, in violation of Title 18, United States Code, Section 1343.  BLANTON was also ordered to make restitution to insurer AFLAC in the amount of $234,295.00.

Pursuant to the Defendant’s plea of guilty to the one-count Criminal Information, the Government proved that between September of 2004 and April of 2010, Blanton devised a scheme to defraud AFLAC, an insurance company, by filing $234,295.00 in false Hospital Confinement Indemnity claims.  The evidence showed that the defendant and her family members were covered beneficiaries under a Hospital Confinement Indemnity insurance policy (hereafter “the Policy”) with AFLAC.  In the event that BLANTON or her family members were admitted as an inpatient to a hospital, the Policy covered BLANTON and her family for certain expenses incurred during the period of the hospital admission.  The defendant created and filed claims with AFLAC stating that BLANTON and certain members of her family had been admitted to a hospital as an inpatient for periods of days and weeks when, in fact, BLANTON and her family members were not admitted to a hospital as an inpatient during the times listed in the claims.  To carry out the scheme BLANTON fabricated medical documentation to make it appear as though BLANTON and her family members had been admitted to a hospital.  BLANTON received and deposited funds from AFLAC in the total amount of $234,295 relating to the false and fraudulent claims.  BLANTON spent the money on her own interests.

Investigation of this case was conducted by the Federal Bureau of Investigation and the North Carolina Department of Insurance.  Assistant United States Attorney William M. Gilmore represented the United States.

RALEIGH- United States Attorney Thomas G. Walker announced that in federal court today WILLIS SARVIS, 34, was convicted by a jury of Distrbution of PCP in violation of Title 21, United States Code, Section 841(a)(1), and Using and Carrying a Firearm during and in relation to a drug trafficking crime in violation of Title 18, United States Code, Section 924(c).  Previously, SARVIS pled guilty to one count of felon in possession of a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924.

On March 18, 2011, Wilmington officers responded to the Hillcrest Housing Community regarding a man that was shot, and ultimately died from his injuries.  The investigation revealed that during the course of a drug deal, the victim had been shot twice with a Romarm/Cugir, WASR, 7.62 x 39 mm assault rifle.  There were numerous shell casings from the rifle in the area and the investigation revealed two homes were also struck with bullets.  The investigation quickly focused on SARVIS who had left the rifle with a friend who gave the rifle over to law enforcement.  Police located SARVIS and took him into custody where he confessed to selling the deceased two small bags of PCP and shooting him when an altercation arose between them.  SARVIS claimed the shooting was in self-defense. 

Investigation of this case was conducted by the Wilmington Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  Special Assistant United States Attorney Charity Wilson is serving as prosecutor for the government.  Ms. Wilson is a prosecutor with the New Hanover County District Attorney's Office.  District Attorney Ben David has assigned her to the United States Attorney's Office to prosecute federal Project Safe Neighborhood cases and other violent crime cases.

NEW BERN - United States Attorney Thomas G. Walker and District Attorney Scott Thomas announced today that two drug dealers from Pamlico County were sentenced in federal court last week. DON ELBERT LEWIS, 57 of Bayboro, NC and WILLIAM JERRY WARREN III, 24 of Grantsboro, NC were eachsentenced as a result of unrelated investigations carried out by the Pamlico County Sheriff’s Office.

According to Mr. Walker, “These prosecutions demonstrate our continued battle to rid communities from the scourge of drug traffickers who negatively impact the quality of life for law abiding citizens.”

On January 10, 2012 LEWIS was sentenced to fifteen years imprisonment followed by five years of supervised release after pleading guilty to conspiring to distribute and possess with the intent to distribute 280 grams or more of cocaine base (crack), and five kilograms or more of cocaine.  According to the investigation, on several occasions deputies from the Pamlico County Sheriff’s Office utilized an informant to purchase cocaine base (crack) from LEWIS and others at his residence on Garrison Lane in Bayboro.  Further investigation revealed that LEWIS allowed his residence to be used by prostitutes as well as by other drug dealers to process and sell narcotics in exchange for either drugs or proceeds from the prostitution and drug sales. The investigation revealed that in total, over 14 kilograms of cocaine and cocaine base (crack) were either processed or sold from LEWIS’ residence. 

On January 11, 2013, WARREN was sentenced to 63 months imprisonment followed by 3 years of supervised release after pleading guilty to distributing cocaine base (crack) and to possessing a firearm after being convicted of a felony criminal offense.   According to the investigation, deputies from the Pamlico County Sheriff’s Office utilized an informant to purchase crack from WARREN in Reelsboro, NC.  At a later date, a concerned citizen gave a tip to a deputy of the Pamlico County Sheriff’s Office that WARREN was occupying a vehicle nearby and was in possession of a firearm.  Upon being approached, WARREN exited the vehicle and attempted to leave the scene.  After he was stopped, WARREN resisted a frisk by the sheriff’s deputy and during a struggle with the officer, kicked a .45 caliber handgun underneath the deputy’s patrol car.  After WARREN was taken into custody, bystanders who observed the struggle informed the deputy that they had seen WARREN attempt to rid himself of the weapon during the struggle.

LEWIS and WARREN were also ordered to pay restitution to the Pamlico County Sheriff’s Office.  LEWIS was ordered to pay $1,520.00 and WARREN was ordered to pay $250.00.  If they are unable to pay immediately, they must participate in the Inmate Responsibility Program to work and pay the restitution while incarcerated.

District Attorney Thomas said, “This investigation is part of our ongoing efforts to fight illegal drug activity in our area.  The Pamlico County Sheriff’s Department did a good job investigating this case and working with Prosecutor Gus Willis to achieve convictions and prison sentences.  We will continue to pursue investigations and prosecutions to address drugs and other illegal activity.”

Special Assistant United States Attorney Augustus Willis represented the government in these cases.  Mr. Willis is a prosecutor with the District 3-B District Attorney’s Office encompassing Carteret, Craven and Pamlico Counties.  District Attorney Scott Thomas has assigned him to the United States Attorney’s Offices to prosecute federal Organized Crime Drug Enforcement Task Force criminal matters.  Mr. Willis’ position is funded through a grant provided by the Governor’s Crime Commission.

GREENVILLE - United States Attorney Thomas G. Walker announced that in federal court on Friday, January 11, 2013, United States District Judge Louise W. Flanagan sentenced DALE CABINESS, 55,of Greenville,North Carolina, to 188 months imprisonment followed by 6 years supervised release. 

A Federal Grand Jury returned a Criminal Indictment on March 14, 2012, charging CABINESS with violations of federal narcotics laws.  CABINESS entered a guilty plea on August 14, 2012, to the distribution of quantities of heroin.

According to evidence presented in Court, the Greenville Regional Drug Task Force used a confidential informant to purchase heroin from CABINESS four times between December 1, 2011, and February 23, 2012.  The investigation revealed that CABINESS was responsible for the distribution of 840 grams of heroin between September 2011 and April 2012. 

CABINESS received an enhanced sentenced based on his status as a Career Offender. 

Investigation of this case was conducted by the Greenville  Regional Drug Task Force consisting of the Greenville Police Department, Pitt County Sheriff’s Office, Farmville Police Department, North Carolina State Bureau of Investigation, and the Drug Enforcement Administration.  The prosecution was handled by Special Assistant United States Attorneys Glenn Perry.  Mr. Perry is a prosecutor with the Pitt County District Attorney’s Office.  Pitt County District Attorney Clark Everett 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 in federal court today REGGIE ANDRE BECKTON, 27, of Wilmington, North Carolina was sentenced by Senior United States District Judge W. Earl Britt to 300 months imprisonment followed by 3 years of supervised release.  He was also ordered to pay $689.00 in restitution to the New Bridge Bank and $2,240.00 to RBC Bank.

On September 12, 2012, BECKTON was convicted on one count of Bank Robbery in violation of Title 18, United States Code, Section 2113(a) and one count of Bank Robbery; Aiding and abetting in violation of Title 18, United States Code, Sections 2113(a) and 2.  According to the investigation, BECKTON robbed the RBC Centura Bank located at 5120 Market Street, Wilmington, North Carolina on August 17, 2010.   On August 26, 2010, BECKTON robbed the New Bridge Bank located at 704 South College Road in Wilmington.

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 Federal Bureau of Investigation and the Wilmington Police Department.  Assistant United States Attorney S. Katherine Burnette prosecuted the case.

NEW BERN - United States Attorney Thomas G. Walker announced that in federal court yesterday afternoon, United States District Judge Louise W. Flanagan sentenced BENNIE JOSEPH DUNLAP, III, 26, of Raleigh, to 21 months in prison, followed by a 3 year term of supervised release, on a single charge of Escape in violation of Title 18, United States Code, Section 751.

Pursuant to DUNLAP’s guilty plea and other evidence in the case, in November of 2011 a federal judge sentenced DUNLAP on a charge for possession of a firearm while being a convicted felon. As a part of the sentence, DUNLAP was ordered to serve a term of imprisonment in the custody of the United States Bureau of Prisons (BOP).

Under its own rules and policies, and at its discretion, the BOP may transfer an inmate to a halfway house to serve a portion of the term of imprisonment ordered by the court. Service of a term of incarceration at a halfway house is a privilege. Although inmates are given limited privileges to leave a halfway house to, among other things, seek gainful employment and obtain medical care, inmates are at all times in the custody and control of the BOP through the halfway house staff. When authorized to leave, inmates may only be away from the halfway house for the duration of time authorized by the halfway house. Moreover, when authorized to leave, inmates must only go to the authorized location, and then promptly return to the halfway house as instructed.

The evidence showed that on June 21, 2012, the BOP transferred DUNLAP to the halfway house known as Community Corrections Center, Cavalcorp Ltd. (hereinafter “Cavalcorp”), located at 312 Tryon Road in Raleigh, North Carolina. Upon transfer to Cavalcorp, DUNLAP was advised orally and in a written document as follows:

This is your official notification that should you be unaccountable at work, pass, or any other approved site, or if you leave the center without permission, you will be charged with escape.

Contrary to popular belief by the inmate population, you DO NOT HAVE 72 HOURS TO TURN YOURSELF IN before escape charges are filed.

Criminal Escape charges may be pursued with the US Attorney’s Office in each and every case.

DUNLAP executed a document containing this official notification. Above DUNLAP’s signature the document also stated, “I have read the above information and fully understand that if I leave the center without permission, or am unaccountable at any time, I can be charged criminally with Escape. I also understand that there is no grace period to turn myself back in to avoid being charged.”

The evidence showed that on June 21, 2012, DUNLAP was also advised orally and in writing of the contents of an “Acknowledgment of Custody” form. This form advised DUNLAP that, “The willful failure of a prisoner to remain within the extended limits of his confinement or to return within the time prescribed to an institution or facility designated by the Attorney General shall be deemed an escape from custody of the Attorney General...” DUNLAP executed the acknowledgment under the section which stated:

I understand that, while at CAVALCORP LTD. COMPREHENSIVE SANCTION CENTER, I am in the custody of the Attorney General of the United States / Bureau of Prisons. I further understand that leaving the facility without permission from the staff shall be deemed an escape from the custody of the Attorney General. I also understand that leaving my place of employment or training without permission from the staff, or failure to return to the facility within the time prescribed shall be deemed an escape from the custody of the Attorney General of the United States supervision.

The evidence further showed that on July 31, 2012 at approximately 7:40 am, DUNLAP signed out, and was authorized to leave Cavalcorp for the limited purpose of going to Wake Medical Center. DUNLAP was instructed that while away he was to be in telephone contact with Cavalcorp every 2 hours. DUNLAP was to immediately return to Cavalcorp after visiting Wake Medical Center.

DUNLAP failed to report his whereabouts to Cavalcorp by phone as instructed, and was unaccountable from 7:40 a.m until approximately 3:00 pm. At approximately 3:00 pm on July 31, 2012, DUNLAP called Cavalcorp and advised that he was not at Wake Medical Center. Cavalcorp staff ordered DUNLAP to immediately return to the halfway house. DUNLAP did not return as instructed. At approximately 4:15 pm on July 31, 2012, DUNLAP called Cavalcorp again and was ordered to immediately return to Cavalcorp. DUNLAP did not return as instructed. At approximately 5:30 on July 31, 2012, DUNLAP called Cavalcorp again and was ordered to immediately return to Cavalcorp. DUNLAP did not return as instructed.

DUNLAP made no contact with Cavalcorp for two full days between the evening of July 31, 2012 and August 2, 2012. At 6:15 pm on August 2, 2012 DUNLAP called and was again ordered to immediately return to Cavalcorp. Later that night at 10:54 pm, DUNLAP returned to Cavalcorp, and was arrested shortly thereafter.

At the sentencing on January 10, 2013, DUNLAP faced an advisory United States Sentencing Guideline range of 6 to 12 months in prison. Upon motion of the United States, however, the Court upwardly departed and varied to a sentence of 21 months in prison, citing the inadequacy of the defendant’s criminal history category and the need to deter DUNLAP and others from this type of offense. Investigation of this case was conducted by the United States Marshals Service. Assistant United States Attorney William M. Gilmore represented the United States.

NEW BERN - United States Attorney Thomas G. Walker announced that in federal court today NANCY NICOLE SMITH, 27, of Columbia, South Carolina, was sentenced by United States District Judge Louise W. Flanagan to 20 months imprisonment, restitution of $100,000, and 3 years of supervised release.  SMITH previously pled guilty to theft of government money in violation of Title 18, United States Code, Section 641, and to bulk cash smuggling in violation of Title 31, United States Code, Section 5332.

Mr. Walker stated, “SMITH abused a position of trust and betrayed the trust of the American taxpayers, including her fellow service members, when she stole $100,000 of U.S. funds earmarked for her military unit.   The sentence imposed today reflects the seriousness of her offense and should serve as a deterrent for others.”

 According to the Criminal Information filed on August 2, 2012, and information in the public record, SMITH was a Staff Sergeant in the United States Army assigned to a Personnel Service Battalion attached to the 7th Special Forces Group based at Fort Bragg, North Carolina.  From September 2009 through February 10, 2010, SMITH was deployed to Afghanistan with the 7th Special Forces Group.  While deployed, SMITH was a disbursing agent responsible for, among other things, disbursing money and reconciling the books and records.  On at least two occasions, SMITH falsified documents in order to steal $100,000 from funds earmarked for her military unit.  She thereafter brought the stolen monies, which at the time were concealed in her backpack, back to the United States.

"Nancy Smith stole money intended for urgent projects in a combat zone, betraying her oath and our armed forces. Special Inspector General for Afghan Reconstruction (SIGAR) and our investigative partners are making it clear that those who defraud the U.S. government will be brought to justice," said Special Inspector General John F. Sopko.

"We are very pleased with today's sentencing," said Frank Robey, Director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit.  "Stealing money during a time of war that is intended for such an important cause is reprehensible and we will continue to do everything in our investigative power to bring those responsible to justice."

“By stealing money from her U.S. Army unit while deployed to a combat theater, (former) Staff Sergeant Smith betrayed her position of trust for personal greed and deprived her fellow soldiers of much needed funds.  The Defense Criminal Investigative Service continues our aggressive efforts to root out corruption and fraud impacting our Warfighters, and recover stolen taxpayer dollars,” commented Special Agent in Charge John F. Khin, DCIS Southeast Field Office.

Investigation of this case was conducted by the Department of Defense Criminal Investigative Service, the Federal Bureau of Investigation, the Office of the Special Inspector General for Afghanistan Reconstruction, and the United States Army Criminal Investigation Command. Assistant United States Attorney Banumathi Rangarajan is serving as prosecutor for the government.

GREENVILLE - United States Attorney Thomas G. Walker announced that MARQUAIL EARL MOURING, 23, of Greenville, North Carolina, was sentenced today by Senior United States District Judge Malcolm J. Howard for his role in a cellular telephone store robbery in Greenville in May of 2011.  On May 3, 2011, MOURING and two co-defendants robbed, at gunpoint, the U.S. Cellular store on Southwest Greenville Boulevard in Greenville, netting $1,080.00.

On October 15, 2012, MOURING pled guilty to a count of Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951, and a count of using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A).

Senior Judge Howard sentenced MOURING to 108 months in prison and 5 years of supervised release.  MOURING was also ordered to pay restitution to U.S. Cellular in the amount of $1,080.00.

One other defendant, Julius Deshawn Hobbs of Greenville, was previously sentenced to 132 months for his role in this robbery and two others.  The remaining defendant, James Arthur Acklin, Jr. of Greenville, has pled guilty in the case and is pending sentencing at a future date.

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 and the Greenville Police Department.  Assistant United States Attorney John Bennett is prosecuting the case.

RALEIGH - United States Attorney Thomas G. Walker announced that in federal court today CARSON BAKER BARNES, 77, of Rocky Mount, North Carolinapled guilty before Chief United States District Judge James C. Dever III to the following offense: Structuring transactions to evade reporting requirements and aiding and abetting, all in violation of Title 31, United States Code, Section, 5324(a)(3) and (d)(2), and Titles 18, United States Code, Section 2.

U.S. Attorney Walker stated, “This prosecution reflects our office’s commitment to prosecute those persons who cooperate with law enforcement in investigations and then subsequently engage in criminal conduct.  Cooperation is not a free pass against future misconduct.”

According to the Criminal Information filed on December 4, 2012, and information in the public record, BARNES came to law enforcement’s attention in connection with the on-going crop insurance fraud investigation in the Eastern District of North Carolina.  In January 2010, BARNES agreed to provide information to law enforcement.  Subsequently, BARNES engaged in the offense conduct charged in the Criminal Information.

Specifically, in 2012, law enforcement learned that BARNES requested, Ham Farms Inc., structure the payment for sweet potato plants purchased by Ham Farms from Barnes.  Specifically, BARNES caused Ham Farms Inc. to issue 24 checks totaling $135,395.00 for two sale dates of June 17, 2011, and June 24, 2011.  Checks were issued in the name of BARNES and 2 other persons. 

Investigation further revealed that at least one of the payees caused some of the checks to be cashed at different branches of the same bank on the same date; other checks were negotiated over the course of three weeks, with the last check being negotiated on or about July 12, 2011.

BARNES is part owner and founder of Barnes Farming Corporation in Spring Hope, North Carolina.

“At this time of year, when hard-working citizens are sitting down to prepare their tax returns, it is especially disappointing to see the overt steps some individuals will take to hide their taxable funds from the government,” said IRS Criminal Investigation Special Agent in Charge, Jeannine A. Hammett.  “IRS-CI is determined to stop those who try to cheat the government, and the facts outlined in today's plea are strong indicators that we can and will find this fraudulent activity.”

The defendant faces a maximum sentence of 10 years imprisonment and/or a $500,000 fine, and 3 years of supervised release.  Sentencing is set for the Court’s April 15, 2013, term of court.

The criminal investigation of this case was conducted by the United States Internal Revenue Service – Criminal Investigations, United States Department of Agriculture – Office of Inspector General - Investigations, and United States Department of Agriculture – Risk Management Agency - Special Investigations Branch. Assistant United States Attorney Banumathi Rangarajan is handling the prosecution on behalf of the Eastern District of North Carolina.

WILMINGTON - United States Attorney Thomas G. Walker announced that in federal court yesterday evening, United States District Judge James C. Fox sentenced MICHAEL SHAWN BROWN, 47, of Selma, to 30 years in prison, followed by a 3 year term of supervised release, and restitution totaling $345,302, on charges of Wire Fraud and Aiding and Abetting in violation of Title 18, United States Code, Section 1343, and Arson to Commit a Federal Offense, in violation of Title 18, United States Code, Section 844(h). United States Attorney Walker is joined in making today’s announcement by Attorney General Roy Cooper, who oversees the North Carolina Medicaid Investigations Division.

Pursuant to BROWN’s plea of guilty to counts 20 and 24 of the Indictment, BROWN, was a Licensed Professional Counselor employed at the Chadbourne Elementary School, in Chadbourne, North Carolina, while operating a separate counseling business allegedly providing “free” teacher-supervised tutoring services, snacks, transportation services, and youth activities and games to lower income individuals. As part of the process for registering each new participant at BROWN’s separate business, BROWN required his employees to obtain a copy of the participant’s Medicaid card. After the initial meeting during which the Medicaid participants gave over their Medicaid card, however, some participants had no further contact with BROWN. BROWN billed Medicaid as though he had performed “individual psychotherapy” or “group” behavioral health counseling and therapy sessions on the children for as long as two hours on a single day. BROWN pled guilty to wire fraud in connection with a fraudulent billing transmission that occurred on April 13, 2011.

The evidence established that on April 14, 2011, investigators requested access to BROWN’s counseling records. BROWN initially refused, but agreed to meet with investigators at his business on April 18, 2011. The business burned on the night before the meeting. During an interview, BROWN told investigators that the last time he was in his business was at 2:30 pm on the afternoon before the fire. The evidence also established that, BROWN had a relative drive him to the business on the night that the business burned. As a result of the fire investigators were unable to examine whatever records, if any, were located in the business. BROWN’s guilty plea to arson was in aid of the federal felony of obstruction of justice.

As a part of the sentence, BROWN was ordered to make payment of $257,802 in restitution to the North Carolina Fund For Medical Assistance, and $87,500 to the owner of the building that BROWN burned in connection with the offense.

Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the North Carolina State Bureau of Investigation; the Medicaid Investigation Division of the North Carolina Attorney General’s Office; and the Columbus County Sheriff’s Office. Assistant United States Attorney William Gilmore and Special Assistant United States Attorney Erica Bing represented the government. Ms. Bing is a prosecutor with the North Carolina Department of Justice, Medicaid Investigation Division. Attorney General Roy Cooper has assigned her to the United States Attorney’s Office to prosecute federal health care fraud criminal matters.

WILMINGTON - United States Attorney Thomas G. Walker announced that EMMANUEL WALLACE III, of Hurdle Mills, North Carolina, was sentenced yesterday by Senior United States District Judge James C. Fox for his role in the June 23, 2011 robbery of approximately $1,210,440 from a Garda armored vehicle when it was located adjacent to the Washington, North Carolina, Bank of America automated teller machine.

On April 23, 2012 WALLACE pled guilty to Hobbs Act Robbery, in violation of Title 18, United States Code, Section 1951, and using or carrying a firearm during and in relation to a crime of violence, or possessing a firearm in furtherance of a crime, in violation of Title 18, United States Code, Section 924(c)(1)(A).

Senior Judge Fox sentenced WALLACE to 252 months (21 years) in prison and 5 years of supervised release.  WALLACE was also ordered to pay $963,766.00 in restitution, which reflects the almost $250,000.00 in robbery proceeds recovered to date.

Two other defendants, Charles Moore, Jr. and Lenard Smith, also pled guilty in the case and are pending sentencing at a future date.

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 Federal Bureau of Investigation and the Washington Police Department.  Assistant United States Attorney John Bennett is prosecuting the case.