Western District of North Carolina

CHARLOTTE, N.C. – A convicted domestic violence offender was sentenced to prison today for possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. ordered Gregory Dashawn Fondren, 26, of Charlotte, to serve 46 months in prison followed by three years of supervised release.

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

“Armed domestic abusers are far more likely to inflict serious bodily harm on their intimate partners, and potentially create dangerous situations for innocent bystanders and responding law enforcement officers. My Office will continue to utilize federal gun laws to prevent and prosecute prohibited persons from illegally possessing firearms,” said U.S. Attorney King. 

“Too often, we’ve seen domestic violence turn deadly when a firearm is involved,” said Acting Special Agent in Charge Jones. “ATF works daily to keep firearms out of the hands of dangerous and prohibited individuals, including those with a history of domestic violence.”

According to information contained in court documents and court proceedings, on September 17, 2021, a witness called 911 to report that a male, later identified as Fondren, was physically assaulting and strangling a female at the parking lot of a grocery store. CMPD officers arrived at the scene and saw that the victim, who was Fondren’s girlfriend, was injured and was bleeding as a result of the assault. A witness told CMPD officers that he saw Fondren put the victim in a headlock, then punch and kick her while she was on the ground. Fondren ran away when law enforcement arrived.

According to court records, CMPD officers located Fondren and he was apprehended soon after. Officers also recovered Fondren’s backpack that he had discarded as he was fleeing the scene and removed from the backpack Fondren’s ID card and a .38 caliber revolver. Court records show that Fondren is prohibited from possessing firearms due to a prior domestic violence conviction of Assault by Strangulation and a conviction for Common Law Robbery.

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

The investigation was conducted by the ATF in coordination with CMPD.

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

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

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According to the National Coalition Against Domestic Violence, 19% of domestic violence involves a weapon. The presence of a gun in a domestic situation increases the risk of homicide by 500%.

To understand more about domestic violence, visit: https://www.justice.gov/ovw/domestic-violence#dv. If you require immediate help, please call the National Domestic Violence Hotline at 1-800-799-SAFE (1-800-799-7233) or Strong Hearts Native Helpline at 1-844-762-8483.

CHARLOTTE, N.C. – Today, U.S. Attorney Dena J. King joined the U.S. Attorneys’ Offices in the Middle and Eastern Districts of North Carolina, and the Department of Justice’s Civil Rights Division and Disability Rights Section, to hold a statewide virtual listening session on voting barriers faced by individuals with disabilities.

The purpose of the virtual event was to encourage community members to share experiences related to obstacles and barriers encountered by persons with disabilities in the voting process, and to address questions and concerns on the topics of registering to vote, obtaining voting and election information, absentee ballot procedures and in-person voting, accessibility in the polling places, and assistance with voting.

Representatives from nonprofit agencies, private organizations, educational institutions, disability advocates and individuals affiliated with the disability community were among those invited to participate in the listening session.

In her remarks to participants, U.S. Attorney King said, “Voting is the cornerstone of our democracy, and every citizen who is eligible to vote must be able to do so without interference or discrimination. Our role as federal prosecutors is to protect the integrity of the election process. That includes ensuring that every American citizen has access to the ballot, and that Americans with disabilities can be full participants in civic life and exercise the franchise. With today’s event, we hope to understand where the needs exist in the community and what barriers may prohibit individuals with disabilities to exercise their fundamental right to vote.”

The U.S. Department of Justice’s “The Americans with Disabilities Act and Other Federal Laws Protecting the Rights of Voters with Disabilities” provides guidance to states, counties, cities, election officials, poll workers, and voters on how the Americans with Disabilities Act (ADA) and other federal laws help ensure that people with disabilities have an equal opportunity to vote. For more information, including how to file an ADA complaint please visit here.

 

CHARLOTTE, N.C. – Today, U.S. Attorney Dena J. King announced a meeting of the Western District’s Health Care Fraud Working Group, which focuses on combating health care fraud in the Western District of North Carolina.

The working group is a multi-agency team of federal and state investigators, analysts, auditors, and attorneys with the Federal Bureau of Investigation, the U.S. Department of Health and Human Services’ Office of the Inspector General, the U.S. Food and Drug Administration’s Office of Criminal Investigations, the Internal Revenue Service’s Criminal Investigation Division, the U.S. Postal Inspection Service, the U.S. Department of Veterans Affairs’ Office of Inspector General, the U.S. Department of Defense’s Office of Inspector General’s Defense Criminal Investigative Service, the North Carolina Attorney General’s Medicaid Investigations Division, and the North Carolina Department of Insurance.

At today’s meeting of the working group, U.S. Attorney King welcomed partner agencies and thanked agency representatives for their participation.

“Today, we strengthen an important partnership to combat health care fraud in the Western District of North Carolina,” said U.S. Attorney King. “As health care fraud schemes increase in scope and sophistication, we are vigorously responding to this escalating crime with innovative and well-coordinated investigative efforts to identify and prosecute fraud effectively and efficiently. I want to thank all the partner agencies for dedicating their resources and expertise to the working group. This is an important step in our fight to protect taxpayer dollars, shield government-funded health care programs from fraud and abuse, hold bad actors responsible for their misdeeds, and deter future misconduct.”

The mission of the working group is to identify and bring to justice those who defraud the health care system and reduce the potential for health care fraud and abuse in the future. The working group focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing of all whistle blower complaints, and the creation of investigative teams so that individual agencies may focus their unique areas of expertise on investigations.

Examples of joint investigations include false billings, COVID-19 fraud, violations of the Anti-Kickback Statute, and other schemes that victimize patients, health care providers, private insurers and government insurers, such as Medicare, TRICARE, and Medicaid. The working group also focuses on fraud committed by both corporate and individual defendants, including hospitals, telemedicine companies and providers, nursing home chains, pharmacies and pharmaceutical manufacturers, durable medical equipment suppliers, individual physicians, therapists, and affiliated health care professionals.

The working group builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce health care fraud and recover taxpayer dollars.

If you suspect Medicare or Medicaid fraud, please report it by phone at 1-800-HHS-TIPS (1-800-447-8477), or via email at HHSTips@oig.hhs.gov. To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320 or fill out an online complaint form. TRICARE fraud can be reported here. Fraud against the U.S. Department of Veterans Affairs healthcare system can be reported at www.vaoig.gov/hotline.

CHARLOTTE, N.C. – Alan Nordman, 75, of Denver, North Carolina, appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to one count of conveyance of a government record, for auctioning online a customs declaration form signed by a celebrity, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

According to filed court documents and today’s plea hearing, from 1984 to 2014, Norman was an employee of U.S. Customs and Border Protection at the John F. Kennedy International Airport Port of Entry. As Nordman admitted in court today, on April 9, 2022, he unlawfully sold on eBay for $795 an official Customs and Border Protection form 6059B, which is a customs declaration document, signed by Michael Jackson upon his entry into the United States. The form is an official government record belonging to the United States.

Nordman was released on bond following the plea hearing. The charge of conveyance of a government record carries a maximum penalty of one year in prison and a $100,000 fine. A sentencing hearing has not been set.

In making today’s announcement, U.S. Attorney King thanked U.S. Customs and Border Protection Office of Professional Responsibility for their investigation of the case.

Assistant U.S. Attorney Graham Billings of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

CHARLOTTE, N.C. – A federal indictment was unsealed in court late yesterday, following the arrest of Dujuan Marquise McNeil, 38, of Charlotte, for assaulting two U.S. Postal Service employees on the same day and related firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, joins U.S. Attorney King in making today’s announcement. 

According to allegations in the indictment, on or about June 1, 2023, McNeil, used a deadly weapon to assault a U.S. Postal Service employee, identified in the indictment as K.S., while she was at work. The indictment also alleges that on the same day McNeill used a deadly weapon to assault a second U.S. Postal Service employee, identified as A.H., while she was working. As alleged in the indictment, during both incidents, McNeil possessed and brandished a firearm in furtherance of a crime of violence, that being the assaults. The indictment further alleges that, on June 14, 2023, McNeil possessed a number of firearms, including an assault rifle, knowing that he had previously been convicted of a felony and was not permitted to possess a firearm.

In addition to the criminal charges, the indictment lists four firearms, a ghost gun, magazines, and ammunition seized from the defendant’s residence, which are subject to forfeiture for violation of federal law.

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

McNeil is currently in federal custody. The maximum penalty for each count of assault of a federal employee by means of a dangerous weapon is 20 years in prison. The minimum penalty for each count of possession and brandishing of a firearm in furtherance of a crime of violence is seven years and the maximum is life in prison. The charge of possession of a firearm by a convicted felon carries a statutory maximum penalty of 15 years in prison.

In making today’s announcement U.S. Attorney King commended USPIS for their investigation of the case.

Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

 

CHARLOTTE, N.C. – David Tatum, 41, a child psychiatrist in Charlotte, was sentenced today to 40 years in prison followed by 30 years of supervised release for sexual exploitation of a minor and using artificial intelligence (AI) to create child pornography images of minors, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Tatum was also ordered to pay restitution in an amount to be determined within 90 days, a $100 special assessment per count of conviction, and a special assessment totaling $99,000 under the Amy, Vicky, and Andy Child Pornography Victim Assistance Act (AVAA). After he is released from prison, Tatum will also be required to register with the Sex Offender Registry Board in any state or jurisdiction where he works or resides.

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

“As a child psychiatrist, Tatum knew the damaging, long-lasting impact sexual exploitation has on the wellbeing of victimized children. Regardless, he engaged in the depraved practice of using secret recordings of his victims to create illicit images and videos of them,” said U.S. Attorney King. “Tatum also misused artificial intelligence in the worst possible way: to victimize children. Today’s 40-year sentence underscores our efforts to do all we can to bring justice to child victims. As the field of artificial intelligence advances, my office is committed to prosecuting predators who seek to exploit this technology to inflict harm on children.”

“It is horrific to believe anyone would secretly record children undressing and showering for their own sexual gratification. And when the evidence proves that person is a doctor entrusted to help children through difficult mental health situations, it is inconceivable,” said FBI Charlotte Special Agent in Charge DeWitt. “The FBI will never stop working to put predators like Tatum behind bars for a very long time.”    

According to filed court documents, evidence presented at Tatum's trial and witness testimony, between 2016 to 2021, Tatum possessed images and videos of child pornography. As trial evidence established, in or about July 2016, Tatum secretly recorded a minor while the minor was undressing and showering. A forensic analysis of electronic devices revealed that Tatum produced the video of the minor and possessed it, along with other images and videos of child pornography. According to trial evidence, Tatum made similar surreptitious recordings of others, including of his patient during an outpatient visit who had just turned 18 years old five days before the recording.

Additionally, trial evidence also established that Tatum used AI to digitally alter clothed images of minors making them sexually explicit. Specifically, trial evidence showed that Tatum used a web-based artificial intelligence application to alter images of clothed minors into child pornography. Two of the images Tatum used AI to modify were from a school dance and a photo commemorating the first day of school.

On May 4, a federal jury in Charlotte convicted Tatum of one count of production of child pornography, one count of transportation of child pornography, and one count of possession of child pornography. Tatum is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

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

Assistant United States Attorneys Daniel Cervantes and Mark T. Odulio of the U.S. Attorney’s Office in Charlotte prosecuted the case.

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

 

CHARLOTTE, N.C. – Yael Aguilar, 30, of Mexico City, Mexico, was sentenced today to 97 months in prison followed by four years of supervised release for distribution of methamphetamine and possession of a firearm by an illegal alien, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Alicia Jones, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Ron Campurciani of the Mooresville Police Department join U.S. Attorney King in making today’s announcement.

According to court documents and court proceedings, in August 2022, the ATF and the Mooresville Police Department initiated an investigation into Aguilar for suspected drug distribution. Over the course of the investigation, law enforcement conducted at least three controlled purchases of narcotics from Aguilar, including for methamphetamine. During one of the controlled purchases, law enforcement observed that Aguilar was armed. On September 22, 2022, law enforcement executed a search warrant at Aguilar’s residence and the two vehicles located in the driveway. During the search, law enforcement recovered narcotics, digital scales, and more than $24,000 in cash. Law enforcement also seized a loaded firearm, assorted ammunition, and a privately made firearm, also known as a “ghost gun,” with a Glock slide, magazine, and ammunition. Aguilar is an illegal alien and he is not permitted to own or possess firearms.

Aguilar remains in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

The ATF and the Mooresville Police Department investigated the case.

Special Assistant U.S. Attorney (SAUSA) William Wiseman of the U.S. Attorney’s Office in Charlotte prosecuted the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the District Attorney’s Office and the U.S. Attorney’s Office. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

 

CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell sentenced Joseph William Patton, 34, of Hickory, N.C., to 168 months in prison followed by five years of supervised release today for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Alicia Jones, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office, Sheriff Alan C. Jones, of the Caldwell County Sheriff’s Office, and Chief Reed Baer of the Hickory Police Department join U.S. Attorney King in making today’s announcement.

According to filed court documents and today’s sentencing hearing, Patton was operating as a major source of supply of methamphetamine in Catawba and Caldwell Counties. Between April and December 2022, law enforcement conducted a joint investigation into Patton’s drug trafficking activities, including arranging multiple controlled purchases of methamphetamine from the defendant. On December 12, 2022, law enforcement initiated a traffic stop of the vehicle Patton was a passenger in for an expired tag violation. During the traffic stop, law enforcement recovered from the vehicle a firearm, $5,448 in cash, and several baggies filled with methamphetamine, fentanyl, and Xanax pills. On the same day, law enforcement executed a search warrant at Patton’s residence, where they recovered 9 mm rifle and four magazines.

On July 20, 2023, Patton pleaded guilty to possession with intent to distribute methamphetamine.

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

The ATF, the Catawba County Sheriff’s Office, the Caldwell County Sheriff’s Office, and the Hickory Police Department conducted the investigation.

Special Assistant U.S. Attorney (SAUSA) William Wiseman of the U.S. Attorney’s Office in Charlotte prosecuted the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the District Attorney’s Office and the U.S. Attorney’s Office. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

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CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Carissa Eugenia Brown, 35, of Charlotte, was sentenced to 54 months in prison for orchestrating a $1.9 million debt collection scheme. In addition to the prison term imposed, Brown was ordered to serve three years under court supervision after she is released from prison and to pay $1,708,920.60 as restitution.

Donald "Trey" Eakins, Special Agent in Charge of the Internal Review Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, join U.S. Attorney King in making today’s announcement.

According to court documents and today’s sentencing hearing, from 2015 to July 2020, Brown executed a fraudulent debt collection scheme that defrauded hundreds of victims located in North Carolina and elsewhere in the United States. Court records show that, during the relevant time period, Brown had registered three companies in North Carolina, which she used in furtherance of the scheme: Accredited Recovery Solutions, LLC (a/k/a Accredited Recovery Network); Elite Credit Adjusters, LLC (a/k/a Elite Credit Network); and Martin Recovery Group, LLC (a/k/a Martin Recovery, P.C. and the Law Office of Martin and Associates).

According to court records, Brown operated her fraudulent debt collection scheme by contacting individuals who had been sued by various creditors for their outstanding debt and falsely represented that she was authorized to collect the debt on behalf of those creditors. Brown generally offered victims to “settle” the outstanding debt for a reduced amount, but only if the victims accepted the offer and paid the reduced amount in full, or began to make payments immediately to one of Brown’s companies. As court records show, Brown often mailed victims official-looking documents, including a purported settlement agreement. Victims then made a lump-sum payment, or several payments, to Brown and her companies, believing that doing so would resolve their debt and outstanding court case, only to later learn that Brown was not authorized to collect the debt and they still owed the full debt to the actual creditor.

To further induce victims to comply with the debt repayment demands, Brown sent correspondence to victims on letterhead that implied the communication was coming from a law firm, and left voicemails for victims falsely representing that she was calling from a law firm. In addition, Brown also employed threatening and harassing pressure tactics to fraudulently induce victims to pay her, including threatening to garnish victims’ wages, to seize victims’ bank accounts, or to file judgments in court if payment on the debt was not received.

As a result of the false and fraudulent representations and threatening and harassing tactics used by Brown, court documents show that hundreds of individuals throughout the United States were fraudulently induced to pay Brown and her companies more than $1.9 million. This resulted in victims being placed in the untenable position of either having to pay their debts twice, or face the financial consequences for failing to pay the true creditor.

Brown previously pleaded guilty to wire fraud and money laundering. She is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney King thanked IRS-CI and USPIS for handling the investigation.

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

CHARLOTTE, N.C. – Benjamin James Hemphill, 24, of Charlotte, was sentenced today to 60 months in prison followed by three years of supervised release today for possession of a firearm in furtherance of a drug trafficking crime, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney King in making today’s announcement.

According to information in court documents and court proceedings, on August 4, 2021, CMPD officers arrested Hemphill after the defendant fled on foot from the scene of a car accident. Court documents show that officers at the scene of the accident searched Hemphill’s vehicle and recovered two firearms, over 3,500 pressed oxycodone pills that contained fentanyl, MDMA pills, and quantities of cocaine, cocaine base, and marijuana. Hemphill was arrested shortly thereafter.     

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

In making today’s announcement, U.S. Attorney King thanked the DEA and CMPD for their investigation of the case.

Special Assistant U.S. Attorney (SAUSA) William Wiseman of the U.S. Attorney’s Office in Charlotte prosecuted the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the District Attorney’s Office and the U.S. Attorney’s Office. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

 

CHARLOTTE, N.C. – A Hickory, N.C. man was sentenced to five years in prison today for possession with intent to distribute methamphetamine and possession of a firearm by a convicted felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Edward Leroy Bailey, 48, was also ordered to serve four years under court supervision after he is released from prison.

Alicia Jones, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Reed Baer of the Hickory Police Department join U.S. Attorney King in making today’s announcement.

According to court documents and court proceedings, in October 2022, law enforcement received information that Bailey was distributing narcotics from his hotel room in the Hickory area. Over the course of the investigation, law enforcement conducted controlled purchases of narcotics from Bailey, and, on October 18, 2022, they executed a search warrant at Bailey’s hotel room. During the search, law enforcement found and seized distribution quantities of methamphetamine, as well as cocaine base and marijuana, and more than $1,800 in cash. Law enforcement also seized three stolen firearms, two of which were loaded, and ammunition. Bailey has a criminal history that includes convictions for Robbery with a Dangerous Weapon and Possession of a Firearm by Felon, and he is not permitted to own or possess firearms.

On July 12, 2023, Bailey pleaded guilty to possession with intent to distribute methamphetamine, and possession of a firearm by a convicted felon.

The ATF and the Hickory Police Department investigated the case.

Special Assistant U.S. Attorney (SAUSA) William Wiseman of the U.S. Attorney’s Office in Charlotte prosecuted the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the District Attorney’s Office and the U.S. Attorney’s Office. 

ASHEVILLE, N.C. – John Allen Biggins, 42, of Surgoinsville, Tennessee, was sentenced today to 17 years in prison followed by a lifetime of supervised release, for traveling to Western North Carolina to engage in illicit sex acts with a minor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also ordered Biggins to register as a sex offender after he is released from prison.

Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Jeff Cassidy, Sheriff of the Sullivan County Sheriff's office in Tennessee, join U.S. Attorney King in making today's announcement. 

"As a sworn officer of the law, Biggins compromised public trust and violated federal statutes," said U.S. Attorney King. "Protecting our children from harm is one of our highest priorities, and identifying and prosecuting predators like Biggins is at the forefront of our efforts to combat child sexual exploitation. I commend Homeland Security Investigations and the Sullivan County Sheriff's Office for taking swift action. Thanks to their work and coordination, children are safe from this dangerous predator." 

“Thankfully, Biggins’ plan to exploit a child was thwarted and he will be held accountable for his heinous crime. Additionally, he also stole the public’s trust when he betrayed his oath to protect the community and enforce the law,” said Special Agent in Charge Martinez. “Finding and arresting predators involved in victimizing and exploiting children is one of HSI’s highest priorities and we are committed to working with our law enforcement partners to use all available resources to protect our communities.”

“I’m thankful for the work of Homeland Security Investigations agents who identified this predator and took immediate action,” said Sheriff Cassidy. “I hope this case sends a very clear message that no matter where you work or what title you hold, we have no tolerance for those seeking to sexually exploit and abuse children.”

According to filed court documents and today’s sentencing hearing, beginning in June 2022, Biggins communicated with undercover agents expressing interest in engaging in illicit sexual acts with a minor female child. On July 8, 2022, Biggins traveled from his home in Surgoinsville to the Western District of North Carolina for the purposes of engaging in sexual acts with a female toddler and was subsequently arrested. When law enforcement arrested Biggins, he was found to be in possession of child pornography images and videos as well as a personally owned Glock 17 9mm semi-automatic pistol and other police equipment. At the time of the offense, Biggins was employed in a position of public trust as a corrections officer at the Sullivan County Sheriff’s Office. Upon notification of the offense, Sheriff Cassidy immediately terminated Biggins from the Sullivan County Sheriff’s Office.

On February 27, 2023, Biggins pleaded guilty to traveling in interstate commerce to engage in illicit sexual conduct with a minor.

U.S. Attorney King credited HSI with the investigation leading to today’s sentence.

Assistant U.S. Attorney Alexis Solheim with the U.S. Attorney’s Office in Asheville prosecuted the case.

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

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Antonio Morquett Phillips, 46, of Hickory, N.C., to seven years in prison followed by five years of supervised release for distribution of fentanyl, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Alicia Jones, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), and Chief Reed Baer of the Hickory Police Department join U.S. Attorney King in making today’s announcement.

According to court documents and today’s sentencing hearing, in February 2022, law enforcement initiated an investigation into Phillips for suspected distribution of fentanyl-based pressed pills. During the investigation, an ATF special agent acting in an undercover capacity conducted multiple controlled purchases of fentanyl-pressed pills from Phillips. On May 25, 2022, law enforcement executed a search warrant at Phillips’ residence. During the search, officers seized approximately 1,000 fentanyl pills, five firearms, and body armor.

On May 23, 2023, Phillips pleaded guilty to possession with intent to distribute fentanyl.

In making today’s announcement, U.S. Attorney King thanked the ATF, the SBI, and the Hickory Police Department for their investigation of this case.

Assistant U.S. Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte prosecuted the case.

Fentanyl is a synthetic opioid that is 50 times more potent than heroin and remains the deadliest drug threat in the United States. According to the Drug Enforcement Administration’s (DEA) One Pill Can Kill public awareness campaign, the agency has seized a record 62 million fentanyl pills to date in 2023, which exceeds last year’s totals of 58 million pills. Laboratory testing indicates 7 out of 10 pills seized by DEA contain a lethal dose of fentanyl.

For information and resources related to substance use disorder, please call the Substance Abuse and Mental Health Services Administration helpline at 1-800-662-HELP (4357) or visit the online treatment locator.

CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell sentenced Savonte Watkins, 46, of Charlotte, to 42 months in prison on drug charges yesterday, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.  Judge Bell also ordered Watkins to serve three years under court supervision after he is released from prison.

According to filed court documents and today’s sentencing hearing, in the spring of 2020, Watkins was involved in a scheme to get fraudulent prescriptions for oxycodone filled at local pharmacies in order to illegally distribute the pills. Court documents show that Watkins was responsible for at least 20 fraudulent prescriptions for approximately 1,200 pills of oxycodone.  According to filed documents and court proceedings, Watkins recruited others, often suffering from opioid addiction, to get the prescriptions filled and would pay them with a portion of the filled prescription. 

On May 31, 2023, Watkins pleaded guilty to conspiracy to obtain controlled substances by fraud and possession with intent to distribute oxycodone.

Watkins is currently released on bond. Upon designation of a federal facility, he will report to the federal Bureau of Prisons for his term of imprisonment.

In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration’s Tactical Diversion Squad, the Charlotte Mecklenburg Police Department, and the Mooresville Police Department for their investigation of this case.

Assistant U.S. Attorney Nick J. Miller of the U.S. Attorney’s Office in Charlotte prosecuted the case.           

ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Joel Wesley Creech, 45, of Brevard, N.C., to 132 months in prison for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also imposed five years of supervised release following incarceration.

According to filed documents and information introduced at the sentencing hearing, between 2020 and 2022, Creech was responsible for trafficking large quantities of methamphetamine in McDowell, Haywood, Transylvania, and Buncombe Counties. Court documents show that Creech supplied the methamphetamine to other individuals for further local distribution. On June 22, 2021, law enforcement executed search warrant at Creech’s residence, where they seized more than 1.5 kilograms of methamphetamine buried in Creech’s backyard, and $2,950 in cash. Law enforcement also seized eight firearms, some of which were loaded, multiple high-capacity magazines, and multiple of rounds of ammunition. According to court records, over the course of the conspiracy, Creech was responsible for assisting and distributing multiple kilograms of methamphetamine.

On April 24, 2023, Creech pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine, and aiding and abetting possession with intent to distribute methamphetamine. He remains in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

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

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

CHARLOTTE, N.C. – As National Domestic Violence Awareness Month (DVAM) draws to a close, the U.S. Attorney’s Office for the Western District of North Carolina announces that the Justice Department’s Office on Violence Against Women (OVW) awarded funding to bolster coordinated community responses aimed at bringing an end to domestic violence, as well as sexual assault, dating violence, and stalking.

The funding prioritizes increasing access to justice, improving survivor safety, holding perpetrators accountable, and offering training and technical support to professionals addressing these crimes.

Data from the most recent National Intimate Partner and Sexual Violence Survey indicate about 41% of women and 26% of men experienced contact sexual violence, physical violence, and/or stalking by an intimate partner and reported an intimate partner violence-related impact during their lifetime. Domestic violence rates are even higher for American Indian and Alaska Native populations, Black individuals, people of color, people with disabilities, and LGBTQI+ individuals.

In the Western District of North Carolina, OVW awarded $375,000 to the Town of Mooresville under the Improving Criminal Justice Responses to Sexual Assault, Domestic Violence, Dating Violence, and Stalking Grant Program to promote coordinated community responses among law enforcement agencies, courts, victim service providers, and other system partners.

The Town of Mooresville, in collaboration with its project partners, will utilize this award to continue improving the jurisdiction’s criminal justice system response to domestic violence. Specifically, the funding will be used to develop and implement policies and training for

police, prosecutors, probation and parole officers, and the judiciary in recognizing, investigating, and prosecuting crimes of domestic violence.

Dena J. King, U.S. Attorney for the Western District of North Carolina said, “I am pleased to announce that the Town of Mooresville has been awarded funding from the Office on Violence Against Women. The funding will enhance a coordinated response to crimes of domestic violence and appropriate treatment of victims.”

“Every day, a vast network of dedicated individuals helps domestic violence survivors access multiple pathways to safety, justice, and healing,” said OVW Director Rosie Hidalgo. “OVW understands that there is no one-size-fits-all approach to addressing domestic violence. These funds will enable communities to increase capacity and strengthen a coordinated community approach to prevent and address violence in more comprehensive ways tailored to their communities. Together, with our grantees, we are building a future where individuals and families can live and thrive without the threat of intimate partner violence.”

OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.

CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Antoine Marquis Williams, 35, of Charlotte, to 14 years in prison followed by three years of supervised release, for a firearms offense in connection with an armed robbery and possession of a weapon by an inmate, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

U.S. Attorney King is joined in making today’s announcement by Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, Terry J. Burgin, United States Marshal of the United States Marshals Service for the Western District of North Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD).

According to filed court documents and court proceedings, on February 5, 2019, at 4:37 p.m., Williams and another individual entered the NY Jewelry & Repair Store located at 6121 South Boulevard in Charlotte. Williams and his co-conspirator had their faces covered and were armed with handguns. The two men encountered the store owner who was with a customer and ordered him into the backroom with two other employees. Court documents show that Williams and his co-conspirator then went to the front of the store and began stealing jewelry. Afterwards, Williams’ co-conspirator fled the store with several items. Williams stayed behind and became involved in a struggle with the store owner. At some point during the struggle, Williams discharged his firearm two times before fleeing the store. The owner called 911 and CMPD officers located Williams hiding under a vehicle at a nearby residence. Officers also recovered the firearm Williams had used during the robbery and had attempted to discard while he was fleeing from the store.

According to court documents, on September 2, 2021, the U.S. Marshals Service received a criminal investigation concerning Williams for repeated possession of weapons and use of weapons while he was in federal custody at a local detention facility. Court documents in this case indicate that, on four different occasions, Williams was found in possession of homemade weapons, generally consisting of pieces of metal filed down to a point. On one occasion, Williams used a homemade weapon to attack another inmate. During the altercation, Williams cut the victim with the homemade weapon multiple times on the face and neck. The victim required medical treatment due to injuries sustained from the attack.

On April 28, 2021, Williams pleaded guilty to discharge of a firearm, in relation to, and in furtherance of a crime of violence, in connection with the armed robbery. Then on June 24, 2022, Williams pleaded guilty to possession of a weapon by an inmate. Williams remains in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney King thanked the FBI, the U.S. Marshals Service, and CMPD for their investigative efforts.

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

 

CHARLOTTE, N.C. – A federal indictment was unsealed today in federal court, charging Dontavis Romario Truesdale, 27, of Charlotte, with conspiracy to commit financial institution fraud and theft of mail by a postal employee, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

According to allegations in the indictment, from November 2022 to April 2023, Truesdale worked as a processing clerk at the Ballantyne Post Office in Charlotte. The indictment alleges that Truesdale used his position as mail processing clerk to steal hundreds of checks of businesses that maintained post office boxes at the Ballantyne Post Office. The indictment further alleges that Truesdale sold the stolen checks to other co-conspirators who committed bank fraud, by depositing the stolen checks into bank accounts they controlled, and then quickly removed the funds before the banks detected the fraud. As alleged in the indictment, over the course of the scheme, Truesdale stole more than 200 checks with a total face value of over $1.9 million.

Truesdale was released on bond following his initial appearance in court. The bank fraud conspiracy charge carries a maximum penalty of 30 years in prison. The charge of theft by a postal employee has a statutory maximum penalty of five years in prison for each of the five counts charged in the indictment.

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

In making today’s announcement, U.S. Attorney King thanked USPS-OIG, USPIS and CMPD for their investigation which led to the charges.

Assistant U.S. Attorney Jenny G. Sugar with the U.S. Attorney’s Office in Charlotte is prosecuting the case.

 

CHARLOTTE, N.C. – Federal charges have been filed against a former NASCAR team owner, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. A Charlotte grand jury returned a bill of indictment, charging Ronald Devine, 67, of Burke, Virginia, with four counts of failure to pay payroll taxes.

Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney King in making today’s announcement.

According to allegations in the indictment, Devine was the owner and President of BK Racing, LLC (BK Racing), which operated a NASCAR racing team and owned two NASCAR charters. As BK Racing’s owner, Devine exercised control over BK Racing’s financial affairs, including having sole signature authority and control over BK Racing’s bank accounts, directing and

authorizing payment of BK Racing’s bills, and authorizing the filing and payment of BK Racing’s trust fund taxes, commonly referred to as payroll taxes.

Payroll taxes are withheld from employees’ gross pay and are used by the government to fund Social Security and Medicare, and also include the income taxes withheld from the employees’ paychecks. Employers are also required to make contributions to trust fund taxes matching the amounts withheld from their employees’ pay, and to file quarterly an Employer’s Quarterly Federal Tax Return, Form 941, indicating payment of the relevant taxes.

The indictment alleges that, starting in 2012, Devine caused BK Racing to fail to account for and pay over hundreds of thousands of dollars in payroll taxes. For example, according to the indictment, in 2017, Devine allegedly failed to pay over more than $390,000 in payroll taxes due to the IRS. The indictment further alleges that, between 2012 and 2017, instead of using the funds held in trust to pay for payroll taxes due, Devine transferred more than $2 million to other businesses and entities that he owned and controlled and used some of the funds to pay for BK Racing’s expenses such as rent, utilities, and vendor bills.

Devine will have his initial appearance in federal court in Charlotte. The charge of failure to truthfully account for and pay over trust fund taxes carries a maximum penalty of five years in prison and a $250,000 fine for each of the four counts in the indictment.

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

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

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

CHARLOTTE, N.C. – Chaiya Maley-Jackson, 23, of Charlotte, pleaded guilty today to unlawful production of a false identification document, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

According to information to which Maley-Jackson pleaded guilty, other documents filed in this case and statements made in court, as early as January 2020, Maley-Jackson was the owner and operator of Diva Documents/CPN Services (Diva Documents). Diva Documents advertised the sale of false and fraudulent documents on Facebook as well as two websites, divadocuments.com and divadocuments.onuniverse.com. Court documents show that Maley-Jackson used her personal Facebook page under the name Yaya Flowers to advertise the types of documents she could produce and a pricelist for the fake documents. The documents listed on the document pricelist that Maley-Jackson could produce and transfer included paystubs, lease agreements, COVID-19 hardship letters, bank statements, W2 forms, Social Security Cards, and driver’s licenses, both digital and hard copies, among others. The prices for the fake documents ranged from $15 to edit a paystub to $150 for a hard copy of a driver’s license. Maley-Jackson required customers to pay half of the payment upfront and the balance upon completion of the fabricated documents.

According to court documents, Maley-Jackson was aware that she was producing and transferring fake documents and knew that customers would use the fake documents for PPP loan applications, car loan applications, and apartment rentals, among others. Maley-Jackson admitted that between January 2020 and August 2022, she created at least 400 Social Security Cards, eight driver’s licenses, and six COVID vaccine cards, and earned more than $320,000 in fees from producing, selling and transferring false documents.

Maley-Jackson was released on bond after her plea hearing.  The maximum statutory penalty for the charge of unlawful production of a false identification document is 15 years in prison.  A sentencing date has not been set. 

The FBI in Charlotte investigated the case.  Assistant U.S. Attorney Caryn Finley is in charge of the prosecution.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with U.S. Attorneys’ Offices and agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.

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

CHARLOTTE, N.C. – Marc Weiss, 48, of Charlotte, appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to wire fraud, for embezzling approximately $1.6 million from two companies, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Jason Byrne, Special Agent in Charge of the United States Secret Service, Charlotte Field Office and Sheriff Darren Campbell of the Iredell County Sheriff’s Office join U.S. Attorney King in making today’s announcement.

According to filed court documents and today’s plea hearing, 2016 to 2022, Weiss engaged in a scheme to defraud two Mooresville, N.C. companies, where he was employed as a bookkeeper. Over the course of the scheme, Weiss abused his position and access to the companies’ financial accounts to make more than 120 fraudulent transfers totaling $1.6 million from the companies’ accounts into bank accounts under Weiss’s control. To disguise the fraud, Weiss created fake entries in the victim companies’ books and records, categorizing the fraudulent transfers as payments to existing vendors for software development, and advertising and marketing expenses.

As Weiss admitted in court today, he generally used the embezzled funds to pay for personal expenses, including to pay for a luxury apartment in Charlotte, to make payments for high-end vehicles, and to pay for travel and vacations.

Weiss was released on bond following today’s plea hearing. The wire fraud charge carries a maximum penalty of 20 years in prison. A sentencing date for Weiss has not been set.

In making today’s announcement, U.S. Attorney King thanked the U.S. Secret Service and the Iredell County Sheriff’s Office for their investigation of the case.

Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

CHARLOTTE, N.C. – A Whittier, N.C., man arrested on a federal complaint for attempted kidnapping on the Blue Ridge Parkway has been formally charged by a grand jury in Charlotte, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The indictment charges Evan William Blankenship, 22, with kidnapping, two counts of assault with intent to commit a felony, two counts of assault with a dangerous weapon with intent to do bodily harm, and possession and discharge of a firearm in furtherance of a crime of violence.

Debra A. Flowers, Acting Chief Ranger of the Blue Ridge Parkway, joins U.S. Attorney King in making today’s announcement. 

According to allegations in the indictment and information contained in the affidavit filed with the criminal complaint, in the early morning hours of September 28, 2023, L.P. and a second victim, L.M., were sitting in a parked vehicle at Water Rock Knob Overlook off the Blue Ridge Parkway. The affidavit alleges that Blankenship drove his vehicle to where the victims were located and pointed a semi-automatic pistol at them. Blankenship tried to pull L.P. out of the vehicle by the hair and arm. Over the course of the incident, Blankenship allegedly threatened to hurt both victims, and hit L.P. in the face causing her temporary hearing loss. Blankenship also allegedly fired his firearm into the air, before pointing it again at the victims.

According to allegations in the affidavit, L.M. eventually convinced Blankenship to let them go. Shortly thereafter, the victims reported the incident to law enforcement. L.P. told investigators that she knew Blankenship through Snapchat and believed Blankenship had used Snapchat’s location sharing feature to find her on the Blue Ridge Parkway.

Blankenship was arrested on October 11, 2023, and remains in federal custody. The charge of kidnapping carries a maximum penalty of life in prison. Each assault charge carries a maximum statutory penalty of 10 years in prison. The charge of possession and discharge of a firearm in furtherance of a crime of violence carries a minimum sentence of 10 years and a maximum of life in prison. The actual sentence of the defendant will be determined by the court based on the federal sentencing guidelines and other applicable statutory factors.

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

In making today’s announcement, U.S. Attorney King thanked the National Park Service for the investigation which led to the charges and the Jackson County Sheriff’s Office for their assistance with the case.

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

CHARLOTTE, N.C. – Today, U.S. Attorney Dena J. King hosted the Western District’s Excellence in the Pursuit of Justice award ceremony, recognizing federal, state, local and Tribal law enforcement, community partners, and citizens for their significant contributions to the mission of the Department of Justice, and for their commitment to protecting the people of the Western District of North Carolina.

“It is an honor to recognize the remarkable men and women in law enforcement for going above and beyond the call of duty to protect our communities and to hold wrongdoers accountable for their actions,” said U.S. Attorney King. “A career in law enforcement is not for the faint of heart. Those who wear the badge understand what it means to live a life of service, despite the significant dangers and challenges that come with the job. I congratulate the recipients for this well-deserved recognition. I am grateful for their outstanding efforts to ensure public safety and for serving the people of the Western District of North Carolina with integrity and excellence. I also thank our community partners and citizens who were recognized today for their contributions to my Office’s efforts to promote important programs and initiatives that promote safety, access to justice, and strengthen our ties with the people we serve.”

The following law enforcement professionals were recognized in the Outstanding Case category, for their work as an investigative team and their exemplary performance in cases handled by the U.S. Attorney’s Office:

Paul M. Engler - FBI 

William J. Gang, II – FBI

Corey S. Zachman – FBI

United States v. Victoria Irby

Sonia Escobedo – Asheville Police Department/DEA

Jonathan Morgan – Asheville Police Department

United States v. Megan Tate

Steve Davis – Jackson County Sheriff’s Office

Brandon Elders – Cherokee Indian Police Department

David Lovedahl – DEA Task Force Officer

Daniel Peoples (Ret.) – Jackson County Sheriff’s Office

Christy Sims – Jackson County Sheriff’s Office

United States v. Martin Medina

Kevin Lau – Bureau of Indian Affairs/DEA

Cody McKinney – Cherokee Indian Police Department

Jesse Ramirez, II – Cherokee Indian Police Department

Jeff Smith – Cherokee Indian Police Department

United States v. Markuetric Stringfellow & Related Cases

John Carrothers – FBI

Michael T. Dixon – FBI

Nick Pompei – IRS-Criminal Investigation

United States v. Vincent Deritis

Timothy Bradley – Homeland Security Investigations

Mathew Rogers – Hickory Police Department

Marisa Rogers – Hickory Police Department

United States v. Hamzeh Alasfar, et al. & U.S. v. Rami Mhana

Matt Hayes – United States Secret Service

David Jester – Charlotte Mecklenburg Police Department
Jeff King –Charlotte Mecklenburg Police Department

Matthew Mescan – Charlotte Mecklenburg Police Department

United States v. Daneon Hanson et. al.

Brianna Ballard – Charlotte Mecklenburg Police Department

Everette Berry – Charlotte Mecklenburg Police Department

Jordan Buehler – Charlotte Mecklenburg Police Department

Peter Carbonaro – Charlotte Mecklenburg Police Department

Stephen Cuccaro – FBI

Luke Donahue – Charlotte Mecklenburg Police Department

Daniel Federowicz – Charlotte Mecklenburg Police Department

Jessica Frank – Charlotte Mecklenburg Police Department

Matthew Grimsley - Charlotte Mecklenburg Police Department

Todd Hepner – Charlotte Mecklenburg Police Department

Matthew Irmscher – FBI

Nicholas Krause – Charlotte Mecklenburg Police Department

David Lopez – Charlotte Mecklenburg Police Department

Richard Migliara – FBI

Dennis Miller – Charlotte Mecklenburg Police Department

Douglas Moore – Charlotte Mecklenburg Police Department

Kaiti Mrak – Charlotte Mecklenburg Police Department

Jennifer Nisavic – Charlotte Mecklenburg Police Department

Katherine Sabino – FBI

Michael W. Sardelis – Charlotte Mecklenburg Police Department

Crystal Schwarte – FBI

Shawn Stegal – Charlotte Mecklenburg Police Department

Tristan Stewart – FBI

Megan Thueme – FBI

Andrea Wilson – Charlotte Mecklenburg Police Department

The following recipients were selected to receive the Outstanding Individual Performance award for their exemplary contributions to multiple cases prosecuted by the U.S. Attorney’s Office:

Carter N. Catlett – U.S. Small Business Administration

Aleta Dunbar - Charlotte Mecklenburg Police Department

John R. Ireland – FBI

Kathryn L. Swinkey – FBI

Michael W. Sardelis – Charlotte Mecklenburg Police Department

Steven M. Webster – U.S. Department of Treasury

This year, the U.S. Attorney’s Office presented Ms. Tiffany Canonica and Ms. Hannah Arrowood with the Outstanding Citizen Award for their contributions in cases prosecuted by the U.S. Attorney’s Office, and recognized Beasley Media Group and Helpmate, Inc. with the Outstanding Community Partner award for their work with the U.S. Attorney’s Office in promoting Department of Justice programs and initiatives.

U.S. Attorney King thanked the awardees for their distinctive efforts and their dedication to pursuing justice while working together to build public trust and keep our communities safe.

 

CHARLOTTE, N.C. – October marks the observance of Domestic Violence Awareness Month (DVAM). U.S. Attorney Dena J. King joins the U.S. Department of Justice in commemorating DVAM, paying tribute to victims and survivors, and saluting the dedication of advocates, service providers, justice professionals, law enforcement officers, and first responders who tirelessly work in support of survivors.

“Domestic violence, dating violence, and intimate partner violence is a recurring pattern of abuse in relationships, that can have a long-lasting impact on victims and survivors,” said U.S. Attorney King. “We want our community to know that we are here to support victims and survivors not just in October, but every month. My Office will continue to be actively engaged with the community we serve to address, respond to, and prevent future domestic violence and bring offenders to justice.”

Today, U.S. Attorney King attended Safe Alliance’s “Breakfast of Hope,” an event held annually to raise awareness about domestic violence and sexual assault. Safe Alliance is an organization that provides support to domestic violence and sexual assault victims in the greater Charlotte area, and client-focused services on housing, court assistance, sexual trauma resources, counseling for individuals, couples, and families, and support groups for adult and teen survivors of domestic violence and sexual assault.

Safe Alliance President and CEO, Laura Lawrence, noted, “The epidemic of domestic violence impacts Charlotte-Mecklenburg in countless ways each day but, by partnering during DVAM and all year long, we can make a difference. Safe Alliance is honored to work alongside U.S. Attorney King’s office supporting survivors and holding offenders accountable in order to build a safer community.”

DVAM provides an opportunity to spread awareness about domestic violence and encourage everyone to play a role in ending gender-based violence. According to the National Domestic Violence Hotline, approximately one in four women and one in seven men will experience severe domestic violence in their lifetimes; however, rates are disproportionately higher for American Indian and Alaska Native populations, women of Color, lesbian, gay, bisexual, transgender, queer, intersex, and two-spirit people, and people with disabilities.

To understand more about domestic violence, visit: https://www.justice.gov/ovw/domestic-violence#dv.

If you require immediate help, please call the National Domestic Violence Hotline at 1-800-799-7233 or Strong Hearts Native Helpline at 1-844-762-8483.

 

ASHEVILLE, N.C. – A Weaverville, N.C. man has been indicted for the attempted murder of a U.S. Postal Carrier and related charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Tommy D. Coke, Inspector In Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, joins U.S. Attorney King in making today's announcement. 

A federal grand jury sitting in Asheville returned a four-count criminal indictment against Jaden Isaiah Garay, 24, charging him with attempted murder of a United States Postal Service Rural Mail Carrier, carjacking, assault on a mail carrier, and use of a firearm during a crime of violence.

According to allegations in the indictment, on September 5, 2023, in Madison County, Garay unlawfully attempted to kill T.R., a United States Postal Service Rural Mail Carrier. The indictment further alleges that Garay carjacked T.R.’s vehicle, assaulted T.R. while she was performing her official duties, and put the victim’s life in jeopardy using a dangerous weapon. The indictment also alleges that Garay did carry and use a 9mm semiautomatic pistol, and that the firearm discharged during and in relation to crimes of violence, that being attempted murder and carjacking.

A federal arrest warrant has been issued for Garay to appear in federal court in Asheville on the federal charges. Garay is currently in the custody of the Madison County Sheriff’s Office.

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

The charge of attempted murder carries a maximum penalty of 20 years in prison. The statutory maximum prison term for the carjacking charge and the assault on a mail carrier charge is 25 years in prison for each offense. The charge of use of a firearm during a crime of violence carries a minimum penalty of 10 years in prison and maximum penalty of life in prison.

In making today's announcement, U.S. Attorney King commended the USPIS, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the U.S. Marshals Service, the North Carolina Department of Correction K9 Team, the North Carolina Highway Patrol, the North Carolina State Bureau of Investigation, the Burke County Sheriff’s Office, Burke County EMS, Burke County Emergency Management, and Burke County Communications Center, the Caldwell County Sheriff’s Office, the Catawba County Sheriff’s Office, the Madison County Sheriff’s Office, the McDowell County Sheriff’s Office, the Morganton Department of Public Safety, the Marion Police Department, and the Mars Hill Police Department for their investigation of the case and for their invaluable assistance in apprehending Garay. U.S. Attorney King also thanked Madison County District Attorney Seth Banks for his Office’s assistance and coordination with the federal investigation.

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

ASHEVILLE, N.C. – A twice federally-convicted man is facing new federal drug trafficking and firearms charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Brian Mein, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Sheriff Lowell S. Griffin of the Henderson County Sheriff's Office join U.S. Attorney King in making today’s announcement.

According to court documents and court records, Douglas Aaron Holcomb, 31, of Brevard, N.C., was released from federal custody on June 20, 2023, after serving a term of imprisonment for possession of ammunition by a convicted felon, and he began to serve a term of court-ordered supervised release. The indictment alleges that, on June 27, 2023, in Henderson County, while Holcomb was on supervised release, he possessed with intent to distribute a quantity of methamphetamine. The indictment also alleges that Holcombe illegally possessed a .45 caliber semiautomatic pistol and 51 rounds of ammunition, and that he possessed the firearm and the ammunition in furtherance of his drug trafficking activities.

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

The charge of possession with intent to distribute methamphetamine carries a mandatory minimum prison sentence of 10 years in prison and a maximum of life in prison. The charge of possession of a firearm in furtherance of a drug trafficking crime carries a sentence of at least five years in prison up to life in prison, to be served consecutive to any other sentence imposed. The charge of possession of a firearm by a convicted felon carries a maximum sentence of 15 years in prison.

In addition to the 2020 federal conviction, Holcomb was convicted in 2016 of federal firearms offenses, that being unlawful possession of a firearm and ammunition while being a fugitive from justice, and possession of a firearm and ammunition while being an unlawful user of a controlled substance.

In making today’s announcement, U.S. Attorney King thanked the ATF and the Henderson County Sheriff’s Office for their investigation of the case.

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

ASHEVILLE, N.C. – Amy Elizabeth Curry, 46, of Waynesville, N.C., has been charged with wire fraud and money laundering, for allegedly embezzling at least $1.5 million from a senior assisted living facility, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

According to allegations in the indictment, from December 7, 2022, to April 4, 2023, Curry executed a scheme to defraud and embezzle at least $1.5 million from Silver Bluff, LLC (Silver Bluff), a senior living and care facility in Canton, N.C. As alleged in the indictment, Curry worked at Silver Bluff from July 2022 through April 2023, as the facility’s office manager and bookkeeper. As part of her duties, Curry had access to and control over Silver Bluff’s bank accounts and accounting records. The indictment alleges that, during a five-month period, Curry made at least 154 unauthorized bank transfers, and defrauded Silver Bluff by transferring at least $1.5 million from the facility’s bank accounts to bank accounts controlled by Curry and her then-boyfriend J.C. The indictment also alleges that in March 2023, Curry purchased a 2020 Ford F-150 pick-up truck, using funds derived from the embezzlement of Silver Bluff.

In addition to the charges, the indictment also contains a notice of forfeiture, which gives notice that the defendant must forfeit to the United States all of the property, currency and monetary instruments involved in the offenses charged in the indictment. The government will pursue a forfeiture money judgment in the amount of at least $1,518,771, which the government contends constitutes the proceeds of the violations alleged in the charging document. Also subject to forfeiture proceedings are items seized during the investigation, including four vehicles (a 2023 Polaris, a 2023 Nissan Maxima, a 2020 Ford F-150, and a 2020 Kia Optima), and $117,867.49 seized from four bank accounts.

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

The wire fraud charge carries a maximum penalty of 20 years in prison. The money laundering offense carries a maximum penalty of 10 years in prison.

In making today’s announcement, U.S. Attorney King thanked the FBI and the Haywood County Sheriff’s Office for their investigation of the case.

The U.S. Attorney’s Office in Asheville is in charge of Curry’s prosecution.

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that $16,470,958 in federal grants has been allocated to the Western District of North Carolina to support public safety and community justice initiatives. The grants are part of the $4.4 billion in funding awarded by the Justice Department’s Office of Justice Programs (OJP), to help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies.

“Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.”

“Federal grants are critical to support my Office’s efforts to increase and restore the health and safety of communities throughout the Western District of North Carolina. Federal funding supports comprehensive public safety solutions tailored to each community’s unique needs, and ensures that local governments and law enforcement have the tools and resources they need to do their jobs effectively.”

From, Dena J. King, United States Attorney 

The more than 3,700 OJP grants being awarded this fiscal year will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.

In the Western District of North Carolina, nearly $9 million has been awarded under OJP’s Bureau of Justice Assistance (BJA) to the cities of Asheville, Boone, Charlotte (and Mecklenburg County), Gastonia (and Gaston County), Monroe, Morganton, Newton, Shelby, and Statesville. BJA provides leadership and assistance to local criminal justice programs that improve and reinforce the nation’s criminal justice system. BJA’s goals are to reduce and prevent crime, violence, and drug abuse and to improve the way in which the criminal justice system functions. BJA funding announcements are posted at: https://www.bja.gov/funding.aspx.

In addition, more than $6.5 million has been awarded to the City of Newton and the National Association of Police Athletic/Activities Leagues, Inc. (National PAL) in Charlotte under OJP’s Office of Juvenile Justice and Delinquency Prevention (OJJDP). A component of the OJP within the Department of Justice, OJJDP works to prevent and respond to youth delinquency and protect children by sponsoring research, program, and training initiatives, disseminating information about juvenile justice issues, and awarding funds to support local programming. OJJDP funding announcements are posted at: https://ojjdp.ojp.gov/funding.

Lastly, $1 million has been awarded to Mecklenburg County under OJP’s National Institute on Justice (NIJ). NIJ is the research, development and evaluation agency of the Department of Justice, dedicated to improving knowledge and understanding of crime and justice issues through science. NIJ funding announcements are posted at: https://nij.ojp.gov/funding.
 

“Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.”

“The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.”

“Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.”

In addition, OJP will award more than $611 million to continue its support of other previously funded programs and congressionally directed spending. More information about the awards announced today can be found by visiting www.ojp.gov/funding/fy23awards.

CHARLOTTE, N.C. – A North Carolina physician appeared before U.S. Magistrate Judge Susan C. Rodriguez this morning on charges related to the alleged unlawful distribution of a controlled substance, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

A criminal indictment charging Henry Ronald Emery, Jr., M.D., 52, of Waxhaw, N.C., with one count of conspiracy to distribute controlled substances outside the bounds of professional medical practice, and 11 counts of distribution of controlled substances outside the bounds of professional medical practice was unsealed following Dr. Emery’s initial court appearance.

Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Donald "Trey" Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, join U.S. Attorney King in making today’s announcement.

According to allegations contained in the indictment, from no later than September 2018 through in or about 2022, Dr. Emery, then a physician licensed to practice medicine in North Carolina, allegedly conspired with other persons to intentionally and unlawfully prescribe, dispense, and distribute, and did unlawfully prescribe, dispense, and distribute, a mixture and substance containing a detectable amount of buprenorphine, a Schedule III controlled substance. The indictment alleges that Dr. Emery engaged in the illegal distribution of buprenorphine on multiple occasions and while acting and intending to act outside the usual course of professional practice and not for a legitimate medical purpose.

If convicted, Dr. Emery faces a maximum penalty of 10 years in prison and a $500,000 fine on each count in the indictment.

The charges against Dr. Emery are allegations. A defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.

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

Assistant U.S. Attorneys Nick J. Miller and William Bozin of the U.S. Attorney’s Office in Charlotte are prosecuting the case.

Albemarle Corporation (Albemarle), a publicly-traded specialty chemicals manufacturing company headquartered in Charlotte, North Carolina, has agreed to pay more than $218 million to resolve investigations by the U.S. Department of Justice and the Securities and Exchange Commission (SEC) into violations of the Foreign Corrupt Practices Act (FCPA) stemming from Albemarle’s participation in corrupt schemes to pay bribes to government officials in multiple foreign countries. 

According to the company’s admissions in connection with the Department’s resolution, between 2009 and 2017, Albemarle, through its third-party sales agents and subsidiary employees, conspired to pay bribes to government officials to obtain and retain chemical catalyst business with state-owned oil refineries in Vietnam, Indonesia, and India. Albemarle obtained profits of approximately $98.5 million as a result of the scheme.

“Albemarle earned nearly $100 million by participating in schemes to pay bribes to government officials in multiple countries,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “As today’s announcement makes clear, the Justice Department will work tirelessly with our partners in the ongoing fight against international corruption. Today’s resolution also demonstrates the real benefits that companies can receive if they self-disclose misconduct, substantially cooperate, and extensively remediate.”

In Vietnam, Albemarle corruptly obtained contracts at two state-owned oil refineries through an intermediary sales agent who requested increased commissions to pay bribes to Vietnam officials and to structure tender requirements to favor Albemarle. In Indonesia, Albemarle used a third-party intermediary to corruptly obtain catalyst business with Indonesia’s state-owned oil company, even after that third-party intermediary had informed Albemarle that it was necessary to pay bribes to Indonesian officials to obtain business. In India, Albemarle used a third-party intermediary to corruptly retain catalyst business with India’s state-owned oil company by avoiding Albemarle being blacklisted.

“Corruption has no borders, but neither does justice,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “Companies are expected to adhere to the same ethical and legal standards whether they are doing business on U.S. soil or overseas. Albemarle’s eventual voluntary disclosure of fraud and subsequent efforts to remedy its business practices abroad are a step in the right direction for the company. Above all, today’s announcement underscores our commitment to fight corruption affecting the United States no matter where it occurs.”

Albemarle entered into a three-year non-prosecution agreement (NPA) with the Department and agreed to pay a penalty of approximately $98.2 million and administrative forfeiture of approximately $98.5 million. The penalty reflects a reduction of $763,453 under Part II of the Criminal Division’s March 2023 Compensation Incentives and Clawbacks Pilot Program for bonuses that the company withheld from qualifying employees. In addition, Albemarle will pay approximately $103.6 million in disgorgement and prejudgment interest as part of the resolution of the SEC’s parallel investigation. The Department has agreed to credit approximately $81.9 million of the forfeiture to be paid to the Department against disgorgement Albemarle has agreed to pay to the SEC.

“The $218 million resolution announced today reflects IRS Criminal Investigation (IRS-CI) special agents’ commitment to working with our law enforcement partners to aggressively expose and disrupt organizations engaged in unscrupulous business practices,” said IRS-CI Chief Jim Lee. “Thanks to our domestic and international law enforcement partners, we’ve ensured Albemarle will be held accountable for their misdeeds.”

Pursuant to the NPA, Albemarle has agreed to continue to cooperate with the Department in any ongoing or future criminal investigations relating to this conduct. In addition, Albemarle agreed to continue to enhance its compliance program and provide reports to the Department regarding remediation and the implementation of compliance measures for the three-year term of the NPA.

The Department reached this resolution with Albemarle based on a number of factors, including, among others, the nature and seriousness of the offense. Albemarle voluntarily disclosed to the Department conduct that forms the basis for the resolution; however, the disclosure was not “reasonably prompt” as defined in the Criminal Division Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP) and the U.S. Sentencing Guidelines § 8C2.5(g)(1). Albemarle received credit under the CEP for its cooperation with the Department’s investigation, which included (i) voluntarily disclosing the conduct that forms the basis for this agreement before it came to the Department’s attention; (ii) promptly providing information obtained through its internal investigation, which allowed the government to preserve and obtain evidence as part of its own extensive independent investigation; (iii) making regular and detailed presentations to the Department; (iv) proactively identifying information previously unknown to the Department; (v) meeting the Department’s requests promptly; (vi) voluntarily making foreign-based employees available for interviews in the United States; (vii) collecting and producing voluminous relevant documents and translations to the Department, including documents located outside the United States; and (viii) producing documents to the Department from foreign countries in ways that did not implicate foreign data privacy laws. The company promptly engaged in extensive remedial measures including, among other things (i) commencing remedial measures based on its internal investigation of the misconduct prior to the commencement of the Department’s investigation; (ii) disciplining employees involved in the misconduct, including terminating 11 employees and withholding bonuses from 16 employees; (iii) strengthening its anti-corruption compliance program by investing in compliance resources, expanding its compliance function with experienced and qualified personnel, and taking steps to embed compliance and ethical values at all levels of its business organization; (iv) transforming its business model and risk management process to reduce corruption risk in its operation and to embed compliance in the business, including implementing a go-to-market strategy that resulted in eliminating the use of sales agents throughout the company, terminating hundreds of other third-party sales representatives, such as distributors and resellers, and shifting to a direct sales business model; (v) providing extensive training to its sales team and restructuring compensation and incentives so that compensation is no longer tied to sales amounts; (vi) using data analytics to monitor and measure its compliance program’s effectiveness; and (vii) engaging in continuous testing, monitoring, and improvement of all aspects of its compliance program beginning almost immediately following the identification of misconduct. In light of these considerations, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 45% reduction off the bottom of the applicable guidelines fine range.   

IRS-CI is investigating the case. 

Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Daniel Ryan for the Western District of North Carolina are prosecuting the case.

The Justice Department’s Office of International Affairs and authorities in Indonesia and India provided substantial assistance in the matter.

The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

NPA

CHARLOTTE, N.C. – Albemarle Corporation (Albemarle), a publicly-traded specialty chemicals manufacturing company headquartered in Charlotte, North Carolina, has agreed to pay more than $218 million to resolve investigations by the U.S. Department of Justice and the Securities and Exchange Commission (SEC) into violations of the Foreign Corrupt Practices Act (FCPA) stemming from Albemarle’s participation in corrupt schemes to pay bribes to government officials in multiple foreign countries. 

According to the company’s admissions in connection with the Department’s resolution, between 2009 and 2017, Albemarle, through its third-party sales agents and subsidiary employees, conspired to pay bribes to government officials to obtain and retain chemical catalyst business with state-owned oil refineries in Vietnam, Indonesia, and India. Albemarle obtained profits of approximately $98.5 million as a result of the scheme.

“Albemarle earned nearly $100 million by participating in schemes to pay bribes to government officials in multiple countries,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “As today’s announcement makes clear, the Justice Department will work tirelessly with our partners in the ongoing fight against international corruption. Today’s resolution also demonstrates the real benefits that companies can receive if they self-disclose misconduct, substantially cooperate, and extensively remediate.”

“Corruption has no borders, but neither does justice. Companies are expected to adhere to the same ethical and legal standards whether they are doing business on U.S. soil or overseas. Albemarle’s eventual voluntary disclosure of fraud and subsequent efforts to remedy its business practices abroad are a step in the right direction for the company. Above all, today’s announcement underscores our commitment to fight corruption affecting the United States no matter where it occurs.”

From, Dena J. King, United States Attorney

In Vietnam, Albemarle corruptly obtained contracts at two state-owned oil refineries through an intermediary sales agent who requested increased commissions to pay bribes to Vietnam officials and to structure tender requirements to favor Albemarle. In Indonesia, Albemarle used a third-party intermediary to corruptly obtain catalyst business with Indonesia’s state-owned oil company, even after that third-party intermediary had informed Albemarle that it was necessary to pay bribes to Indonesian officials to obtain business. In India, Albemarle used a third-party intermediary to corruptly retain catalyst business with India’s state-owned oil company by avoiding Albemarle being blacklisted.

Albemarle entered into a three-year non-prosecution agreement (NPA) with the Department and agreed to pay a penalty of approximately $98.2 million and administrative forfeiture of approximately $98.5 million. The penalty reflects a reduction of $763,453 under Part II of the Criminal Division’s March 2023 Compensation Incentives and Clawbacks Pilot Program for bonuses that the company withheld from qualifying employees. In addition, Albemarle will pay approximately $103.6 million in disgorgement and prejudgment interest as part of the resolution of the SEC’s parallel investigation. The Department has agreed to credit approximately $81.9 million of the forfeiture to be paid to the Department against disgorgement Albemarle has agreed to pay to the SEC.

“The $218 million resolution announced today reflects IRS Criminal Investigation (IRS-CI) special agents’ commitment to working with our law enforcement partners to aggressively expose and disrupt organizations engaged in unscrupulous business practices,” said IRS-CI Chief Jim Lee. “Thanks to our domestic and international law enforcement partners, we’ve ensured Albemarle will be held accountable for their misdeeds.”

Pursuant to the NPA, Albemarle has agreed to continue to cooperate with the Department in any ongoing or future criminal investigations relating to this conduct. In addition, Albemarle agreed to continue to enhance its compliance program and provide reports to the Department regarding remediation and the implementation of compliance measures for the three-year term of the NPA.

The Department reached this resolution with Albemarle based on a number of factors, including, among others, the nature and seriousness of the offense. Albemarle voluntarily disclosed to the Department conduct that forms the basis for the resolution; however, the disclosure was not “reasonably prompt” as defined in the Criminal Division Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP) and the U.S. Sentencing Guidelines § 8C2.5(g)(1). Albemarle received credit under the CEP for its cooperation with the Department’s investigation, which included (i) voluntarily disclosing the conduct that forms the basis for this agreement before it came to the Department’s attention; (ii) promptly providing information obtained through its internal investigation, which allowed the government to preserve and obtain evidence as part of its own extensive independent investigation; (iii) making regular and detailed presentations to the Department; (iv) proactively identifying information previously unknown to the Department; (v) meeting the Department’s requests promptly; (vi) voluntarily making foreign-based employees available for interviews in the United States; (vii) collecting and producing voluminous relevant documents and translations to the Department, including documents located outside the United States; and (viii) producing documents to the Department from foreign countries in ways that did not implicate foreign data privacy laws. The company promptly engaged in extensive remedial measures including, among other things (i) commencing remedial measures based on its internal investigation of the misconduct prior to the commencement of the Department’s investigation; (ii) disciplining employees involved in the misconduct, including terminating 11 employees and withholding bonuses from 16 employees; (iii) strengthening its anti-corruption compliance program by investing in compliance resources, expanding its compliance function with experienced and qualified personnel, and taking steps to embed compliance and ethical values at all levels of its business organization; (iv) transforming its business model and risk management process to reduce corruption risk in its operation and to embed compliance in the business, including implementing a go-to-market strategy that resulted in eliminating the use of sales agents throughout the company, terminating hundreds of other third-party sales representatives, such as distributors and resellers, and shifting to a direct sales business model; (v) providing extensive training to its sales team and restructuring compensation and incentives so that compensation is no longer tied to sales amounts; (vi) using data analytics to monitor and measure its compliance program’s effectiveness; and (vii) engaging in continuous testing, monitoring, and improvement of all aspects of its compliance program beginning almost immediately following the identification of misconduct. In light of these considerations, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 45% reduction off the bottom of the applicable guidelines fine range.   

IRS-CI is investigating the case. 

Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Daniel Ryan for the Western District of North Carolina are prosecuting the case.

The Justice Department’s Office of International Affairs and authorities in Indonesia and India provided substantial assistance in the matter.

The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

CHARLOTTE, N.C. - U.S. District Judge Frank D. Whitney sentenced a poly-drug trafficker to 10 years in prison late yesterday, announced Dena J. king, U.S. Attorney for the Western District of North Carolina. In addition to the term of incarceration, Deion Rashaad Thompson, 29, of Charlotte, was also ordered to serve five years of supervised release. 

According to filed court documents and court proceedings, between January 2021 and June 2022, law enforcement conducting an ongoing investigation into drug trafficking networks in Charlotte, identified Thompson as a local drug distributor. Court records show that law enforcement working in an undercover capacity and with cooperating individuals arranged multiple controlled buys of illicit narcotics with Thompson, including fentanyl, heroin, methamphetamine, cocaine and cocaine base. One of the drug transactions occurred at a residence in Charlotte known to law enforcement from numerous drug overdoses that had occurred there. 

On March 10, 2023, Thompson pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, methamphetamine, heroin, and fentanyl, three counts of distribution of fentanyl, and one count of distribution of methamphetamine.

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

In making today’s announcement, U.S. Attorney King credited the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF) and thanked the FBI and the Charlotte Mecklenburg Police Department for their investigative efforts.

OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.

Assistant U.S. Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte prosecuted the case.

 

 

CHARLOTTE, N.C. – Evan Agustin Perez, 35, of Charlotte, pleaded guilty today to wire fraud conspiracy for obtaining approximately $720,000 in fraudulent Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan (EIDL) Program loans, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

According to the information to which Perez pleaded guilty, other documents filed in this case and statements made in court, from April 2020 to September 2021, Perez conspired with Edward Whitaker and others in a scheme to defraud the U.S. Small Business Administration (SBA) and SBA-backed lenders by obtaining fraudulent COVID-19 disaster relief funds for businesses he controlled or was affiliated with, including Augie’s Wish Foundation, EMP Haircare, LLC, E.M.P. Enterprises, LLC, T.O.P. Salon Suites Inc., Touch of Precision School of Barbering, Inc., Touch of Precision Barber Lounge, LLC, and Roads to Success Early Learning Center, LLC.

Court documents show that Perez, Whitaker, and others submitted PPP and EIDL loan applications and supporting documents that contained false and fraudulent information regarding Perez’s businesses’ income, number of employees, gross revenues, and expenses. As a result of the fraudulent loan applications, the co-conspirators received approximately $720,000 in disaster relief funds. In furtherance of the scheme, Perez, Whitaker, and other co-conspirators subsequently submitted forgiveness applications for certain PPP loans that also contained fabricated information.

In January 2023, Whitaker pleaded guilty in federal court in the Eastern District of North Carolina to money laundering conspiracy for his role in a multi-million fraud scheme assisting individuals with obtaining fraudulent coronavirus disaster relief funds.

Perez was released on bond after his plea hearing. The maximum statutory penalty for the wire fraud conspiracy offense is five years in prison. A sentencing date has not been set.

The SBA Office of Inspector General investigated the case. Special Assistant U.S. Attorney Eric A. Frick and Assistant U.S. Attorney Daniel Ryan are in charge of the prosecution.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with U.S. Attorneys’ Offices and agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.

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

 

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Everett Jamal Taite, 30, of Charlotte, to 10 years in prison followed by three years of supervised release for possession of a stolen firearm at the Charlotte Transportation Center, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

According to filed court documents and the sentencing hearing, on October 4, 2022, law enforcement encountered Taite in a public restroom at the Charlotte Transportation Center where they observed him holding a small bag of cocaine. Court records show that when Taite was confronted by law enforcement, he attempted to put the cocaine into his backpack, failed to follow commands of the officer, resisted arrest, struck the officer in the face, and stated that he had a gun. Taite was taken into custody shortly thereafter. In Taite’s waistband, officers found a loaded .45 caliber pistol that had been reported stolen. Taite has previously been convicted in state court of conspiracy to commit common law robbery, two counts of felony breaking and entering, and possession of a firearm by a convicted felon.

On April 17, 2023, Taite pleaded guilty to possession of a stolen firearm. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

 

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

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

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Donald Booker, 57, of Charlotte, to 200 months in prison for his role in a scheme to defraud the North Carolina Medicaid program of more than $11 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Booker was also ordered to pay $11,834,506.27 in restitution to the North Carolina Medicaid program and to pay a $1,000 special assessment. On December 9, 2022, Booker’s co-defendant, Delores Jordan, 55, of Louisville, Kentucky, pleaded guilty for her role in the fraudulent scheme.

Joining U.S. Attorney King in making today’s announcement are Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, (IRS-CI), Charlotte Field Office, and North Carolina Attorney General Josh Stein, who oversees the North Carolina Medicaid Investigations Division (MID).

“Medicaid is a government-funded program that provides medical services to qualified North Carolinians in need of assistance. It’s not a get-rich-quick money jar for cheats and fraudsters to dip into,” said U.S. Attorney King. “The U.S. Attorney’s Office will hold accountable those who engage in schemes that defraud government programs and deprive important resources from those in real need.”

“North Carolina’s Medicaid program is meant to help the most vulnerable people in our community. Anyone who thinks they can manipulate the system should know the FBI will work tirelessly to make sure they pay dearly,” said FBI Special Agent in Charge DeWitt.

“Individuals abusing and stealing critical funding for Medicaid programs for their own financial benefit will be held accountable,” said Special Agent in Charge Eakins. “Thanks to the financial expertise and diligence of IRS-CI special agents working side-by-side with other federal, state and local law enforcement officers to uncover these schemes, the perpetrators now face the consequences of their actions.”

“When people steal from Medicaid, they’re breaking the law,” said Attorney General Stein. “They’re also taking from the taxpayers and people who need health care services. My office’s Medicaid Investigations Division works with our state and federal partners to hold accountable anyone committing Medicaid fraud.”

According to filed court documents, evidence presented at Booker’s trial evidence, and witness testimony, Booker owned United Diagnostic Laboratories (UDL), a urine toxicology testing laboratory, and United Youth Care Services (UYCS), a company that provided mental health and substance abuse treatment services. Booker’s co-defendant, Delores Jordan, owned Legacy Housing, a housing provider. Trial evidence established that, from January 2016 to August 2019, Booker and his co-conspirators executed a conspiracy to defraud the North Carolina Medicaid program by paying illegal kickbacks to Jordan and other co-conspirators in exchange for urine samples from Medicaid-eligible beneficiaries.

As Jordan previously admitted in court, she and other co-conspirators recruited housing-vulnerable individuals and other Medicaid-eligible beneficiaries for housing and other programs and services. Once enrolled, the beneficiaries were required to submit urine specimens for drug testing as a condition of their participation in the program. The specimens were provided to UDL and UYCS for medically unnecessary urine drug testing. Booker and his co-conspirators paid the recruiters a kickback from UYCS’s NC Medicaid reimbursement on the drug testing. Court records show that Booker and Jordan also executed a conspiracy to launder the proceeds of the kickback and health care fraud conspiracy in order to conceal and disguise the nature and source of UYCS’s illegal kickback payments for drug testing referrals.

On January 10, 2023, a federal jury convicted Booker of conspiracy to commit health care fraud, multiple violations of the Anti-Kickback Statute, money laundering conspiracy, and money laundering. Jordan has pleaded guilty to healthcare fraud conspiracy and money laundering conspiracy and is awaiting sentencing.

The FBI, IRS-CI, and the North Carolina Medicaid Investigations Division investigated the case.

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

     

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CHARLOTTE, N.C. – A federal jury has returned a guilty verdict against a Charlotte physician for her role in a durable medical equipment (DME) scheme that defrauded federal benefits programs of more than $5 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Sudipta Mazumder, 47, of Charlotte, was convicted of six counts of making false statements relating to healthcare matters. U.S District Judge Max O. Cogburn Jr. presided over the trial.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tamala E. Miles, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General for the region including North Carolina, join U.S. Attorney King in making today’s announcement.

According to court documents, witness testimony, and evidence presented at trial, during 2019 and 2020, Mazumder was a doctor in Charlotte who worked as an independent contractor for a telemedicine company. During the relevant time frame, Dr. Mazumder signed fraudulent orders for medically unnecessary durable medical equipment for patients insured by the Medicare and TRICARE programs. Trial evidence established that Dr. Mazumder falsely stated in those orders that she was treating the patients for the listed medical conditions and that the braces she ordered were medically necessary.

According to trial evidence and the testimony of witnesses, contrary to the orders she signed, Dr. Mazumder never examined the Medicare and TRICARE beneficiaries. In fact, Dr. Mazumder had little or no interaction with the beneficiaries and made no medical determination whether the devices were medically necessary or the beneficiaries needed the DME. Dr. Mazumder received from the telemedicine company unsigned orders for orthopedic braces for the beneficiaries, which she signed and returned to the telemedicine company in exchange for $20 for each purported assessment that she performed.

Dr. Mazumder remains released on bond. The charge of making false statements relating to healthcare matters carries a maximum penalty of five years in prison and a $250,000 fine, per count. A sentencing date has not been set.

The investigation was handled by the FBI and HHS-OIG with the assistance of the Defense Criminal Investigative Service of the U.S. Department of Defense, Office of the Inspector General.

Assistant U.S. Attorneys Graham Billings and Katherine Armstrong of the U.S. Attorney’s Office in   Charlotte are prosecuting the case.

CHARLOTTE, N.C. – George McNeill, 32, of Charlotte, was sentenced today to 90 months in prison followed by four years of supervised release for possession with intent to distribute fentanyl and cocaine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

According to filed court documents and information presented at the sentencing hearing, in September 2021, law enforcement learned that McNeill was a fentanyl and cocaine trafficker in the Charlotte area. Court records show that law enforcement working with a cooperating individual arranged a meeting with McNeill to buy narcotics. When McNeill arrived in his vehicle at the agreed-upon location, law enforcement moved in to detain him. McNeill sped away from the scene to evade arrest. McNeill eventually crashed his vehicle and then attempted to flee on foot. He was apprehended after a brief foot chase. After McNeill was arrested, law enforcement searched his vehicle and recovered fentanyl, cocaine, drug paraphernalia, and $2,160 in cash. Law enforcement also found a firearm loaded with six rounds of ammunition tucked beneath the center console arm rest. Court records show that McNeill has multiple prior state convictions for drug trafficking.

On April 11, 2023, McNeill pleaded guilty to possession with intent to distribute fentanyl and cocaine. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney King credited the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF), and thanked the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Charlotte Mecklenburg Police Department for their investigative efforts.

OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.

Assistant U.S. Attorney Taylor G. Stout of the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – A federal grand jury in Charlotte has indicted Mandy Deann Urban, 47, formerly of Charlotte, with wire fraud, for allegedly embezzling more than $1.1 million from her employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

U.S. Attorney King is joined in making today’s announcement by Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department.

According to allegations in the indictment, from January 2019 to June 2022, Urban was employed as a senior staff accountant for a Charlotte-based company. In that capacity, Urban was responsible for maintaining the company’s general ledger, preparing financial statements, and reconciling the company’s accounts payable and receivable and bank statements. The indictment alleges that Urban executed a scheme to defraud her employer by misusing her access to make multiple transfers from the company’s bank accounts to accounts under Urban’s control. Urban also allegedly falsified the company’s books and records to conceal the scheme. As alleged in the indictment, Urban made more than 245 fraudulent transfers from the accounts of the company totaling $1,115,344.73.

According to allegations in the indictment, Urban used the embezzled funds to pay for personal expenses, including tens of thousands of dollars for mortgage, car, education, and vacation expenses, and to buy cryptocurrency. Additionally, it is alleged that Urban transferred significant amounts of embezzled funds to family members.

The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine.

Court records show that Urban is currently in custody in Florida, serving a prison sentence for defrauding a previous employer of more than $283,000, and using the embezzled money to pay for court-ordered restitution for a prior embezzlement.

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

In making today’s announcement, U.S. Attorney King commended HSI and CMPD for their investigation of the case.

Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

 

 

CHARLOTTE, N.C. – A Charlotte behavioral health services provider has been indicted on federal charges for allegedly defrauding the South Carolina Medicaid Program (SC Medicaid) and falsely obtaining COVID-19 relief funds, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

The 16-count federal indictment charges Ashley Nicole Cross, 41, of Charlotte, with healthcare fraud, making false writings relating to a healthcare matter, making false statements relating to a healthcare matter, promotion money laundering, wire fraud, wire fraud conspiracy, and wire fraud affecting a financial institution.

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

The Healthcare Fraud Scheme

The federal indictment alleges that Cross owned and operated Odyssey Health Group (OHG), a Charlotte-based company, that was enrolled with SC Medicaid and provided outpatient behavioral health services to eligible Medicaid beneficiaries in South Carolina. From 2016 to 2021, Cross carried out an extensive healthcare fraud scheme involving the fraudulent submissions of fraudulent reimbursement claims to SC Medicaid and its contracted managed care organizations for rehabilitative behavioral health services that were never provided. The indictment alleges that Cross paid for the personal identifying information (PII) of qualified SC Medicaid beneficiaries. Cross then allegedly used the PII to file fraudulent reimbursement claims totaling at least $400,000. To further the scheme and to give the appearance that OHG’s fraudulent claims were legitimate, Cross allegedly instructed OHG employees to create fictitious patient files and clinical service notes in the names of beneficiaries.

According to allegations in the indictment, in September 2019, Cross was informed of an audit into OHG’s claims. The indictment alleges that Cross submitted fictitious patient medical records and made false statements to the auditor in order to cover up the fraud.

The indictment also alleges that Cross engaged in money laundering and used some of the fraudulent proceeds to promote the scheme by paying for Medicaid beneficiary names and PII.

The COVID-19 Fraud Scheme

According to allegations in the indictment, from April 3, 2020, to May 14, 2022, Cross executed a scheme to obtain fraudulent Paycheck Protection Program (PPP) loans on behalf of OHG and Gucci International Inc. (Gucci), a purported event planning business owned by a co-conspirator. To obtain the PPP loans, Cross submitted loan application and supporting documents that contained false statements regarding OHG’s and Gucci’s payroll expenses, number of employees, and other misrepresentations. As a result of the fraudulent PPP loan applications and supporting documents, Cross  and her coconspirator obtained more than $120,000 in COVID-19 relief funds for OHG and Gucci. At the time of Gucci’s loan application, the company’s owner was under indictment for a federal offense. 

The charges against Cross are allegations. A defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.

A summons has been issued and Cross will appear in federal court for her initial appearance. The healthcare fraud offense carries a maximum penalty of 10 years in prison for each count in the indictment. The offense of making false writings and false statements relating to a healthcare matter carries a maximum prison sentence of five years. The promotion money laundering and wire fraud charges each carry a maximum statutory sentence of 20 years in prison per count. And the charge of wire fraud conspiracy affecting a financial institution carries a maximum penalty of 30 years in prison.

The FBI investigated the case with the substantial assistance of the South Carolina Attorney General’s Office, Medicaid Fraud Investigations.

Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

CHARLOTTE, N.C. – A U.S. Postal Carrier and her husband appeared in federal court today and pleaded guilty to federal charges for conspiring to commit an extensive mail theft scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Kiara Padgett, 29, of Waxhaw, N.C., and her spouse, Dominique Dunlap, 28, of Charlotte, pleaded guilty to conspiracy to commit bank fraud. Dunlap also pleaded guilty to four counts of possession of stolen mail.

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

According to plea documents, other court filings, and today’s court proceedings, Padgett was employed by the U.S. Postal Service as a mail carrier with a postal route in West Charlotte. From August 2021 to November 2022, Padgett used her position as a postal carrier to steal incoming and outgoing checks of businesses and individuals. Court documents show that Padgett sold the stolen checks using Dunlap as her intermediary to other individuals, including to Terrell Alexander Hager, Jr. The total face value of the checks stolen by Padgett was over $8.8 million. 

According to court documents, Dunlap negotiated with Hager, Jr. about the sale of stolen checks over text messages, and sent Hager, Jr. photographs of stacks of stolen mail and of stolen checks of victim companies on Padgett’s postal route.

In March 2023, Hager, Jr. pleaded guilty to conspiracy to commit bank fraud. Court documents filed with the court show that, between August 2021 and November 2022, Hager, Jr. and other individuals obtained stolen checks from Padgett through Dunlap. Hager, Jr. and his co-conspirators deposited the stolen checks into bank accounts they controlled, and then made cash withdrawals before the financial institutions detected the fraud. Over the course of the scheme, Hager, Jr. and his co-conspirators deposited more than $66,000 in stolen checks and money orders. Hager, Jr. also posted online for sale more than 400 stolen checks totaling over $7.3 million. The checks posted by Hager, Jr. were stolen from Padgett’s postal route in West Charlotte. At the time Hager, Jr. committed this fraud, he was on probation with the state of North Carolina for an unrelated offense.

At sentencing, Padgett, Dunlap, and Hager, Jr. face a maximum prison term of 30 years and a $1 million fine for the bank fraud conspiracy charge. Dunlap also faces five years in prison and a $250,000 fine for each of the charges of possession of stolen mail. A sentencing date has not been set.

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

Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

 

ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Brandon Lee Nalley, 48, of Hendersonville, N.C., to 168 months in prison followed by five years of supervised release for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

According to filed documents and today’s sentencing hearing, between July 2021 and December 2021, federal, state, and local law enforcement conducting an investigation into methamphetamine trafficking networks in western North Carolina identified Nalley as a supplier of methamphetamine in Henderson County. Over the course of the investigation, law enforcement utilized a confidential source to arrange multiple controlled buys of methamphetamine from Nalley. On December 22, 2021, deputies with the Haywood County Sheriff’s Office conducted a traffic stop of Nalley’s vehicle. Over the course of the stop, the deputies found a duffel bag inside the vehicle that contained methamphetamine, a loaded handgun with an extended magazine, and an additional magazine loaded with seven rounds of hollow point ammunition.

On April 26, 2023, Nalley pleaded guilty to conspiracy to possess with intent to distribute 50 grams or more of actual methamphetamine and 500 grams or more of a mixture containing methamphetamine, and distribution of 50 grams or more of actual methamphetamine. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney King credited an investigation led by the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF), and thanked the U.S. Drug Enforcement Administration, the Henderson County Sheriff’s Office, the Haywood County Sheriff’s Office, the Swain County Sheriff's Office, the Waynesville Police Department, the McDowell County Sheriff’s Office, the Canton Police Department, the Buncombe County Sheriff’s Office, the Maggie Valley Police Department, the North Carolina State Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their investigative efforts.

OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.

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

 

 

CHARLOTTE, N.C. – The head of a drug trafficking organization responsible for distributing multiple kilograms of methamphetamine and other illicit drugs in the Charlotte area was sentenced today to 17 years in prison, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Upon his release from prison, Laricco Eugene Sherrill, Sr., 45, of Charlotte, will be subject to five years of supervised release.

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

In addition to Sherrill, Sr., six other members of the drug trafficking organization (DTO) have been sentenced as follows:

• Jakieran Harris, 27, of Charlotte, was sentenced to 108 months in prison, followed by three years of supervised release.
• Laricco Eugene Sherrill, Jr., 24, of Charlotte, was sentenced to 84 months in prison, followed by four years of supervised release.
• Marquez Maxwell, 28, of Charlotte, was sentenced to 54 months in prison, followed by three years of supervised release.
• Quentin Nathaniel Stowe, 29, of Charlotte, was sentenced to 48 months in prison, followed by three years of supervised release.
• Brian Clinton, 25, of Charlotte, was sentenced to 42 months in prison, followed by three years of supervised release.
• Sadarian Armstrong, 42, of Charlotte, was sentenced to 24 months in prison, followed by three years of supervised release.

According to court documents and court proceedings, beginning as early as January 2020 through August 17, 2021, Sherrill, Sr. was the leader of the DTO that distributed large quantities of narcotics in Mecklenburg County and surrounding areas. Court records show that the DTO used several residences in Charlotte, commonly referred to as “trap houses,” as bases of operation from which they sold the drugs. Young children were regularly present in these trap houses while DTO members sold drugs. Over the course of the investigation, law enforcement executed multiple search warrants and seized from DTO members and the trap houses fentanyl, methamphetamine, cocaine, cocaine base, and marijuana, drug paraphernalia, digital scales, several firearms and ammunition, and over $63,650 in drug proceeds.

As the leader of the DTO, Sherrill, Sr. purchased large quantities of methamphetamine and other narcotics from multiple supply sources. He stored the drugs in several residences, or stash houses, in the area, and used a network of local distributors, including the six co-conspirators, to sell the drugs. Over the course of the investigation, law enforcement arranged multiple controlled drug buys with Sherrill, Sr. and co-conspirators working for him. Before the investigation leading to this case, Sherrill, Sr. had previously served a federal prison sentence for trafficking drugs while armed in the Western District of North Carolina.

On April 11, 2023, Sherrill, Sr. pleaded guilty to distribution of methamphetamine.

“As head honcho of a drug trafficking organization, Sherrill, Sr. sold drugs, unfazed by the havoc he was wreaking in the lives of those who bought his poison,” said U.S. Attorney King. “Drug trafficking and the violence linked to the drug trade are a blight that threatens the stability and safety of our communities. Thanks to the joint efforts of my Office and our law enforcement partners, Sherrill, Sr. will now spend nearly two decades behind bars.”

“Disrupting violent drug trafficking organizations has an enormous impact on the safety of our cities,” said Acting Special Agent in Charge Jones. “In the process of breaking up these drug trafficking networks, we’re recovering firearms, bringing dangerous individuals to justice, and making our neighborhoods safer.”

In making today’s announcement U.S. Attorney King credited the ATF and CMPD’s Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF program can be found at https://www.justice.gov/OCDETF.

Assistant United States Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

 

 

 

CHARLOTTE, N.C. – Jeremy Isaih Perdue, 36, of Charlotte, was sentenced to 48 months in prison for illegal possession of a firearm, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

According to court records, on May 19, 2021, CMPD officers saw Perdue selling drugs in a parking lot in Charlotte. CMPD officers approached Perdue. After a brief struggle, Perdue was detained. During the struggle, the officers observed a firearm tucked in Perdue’s waistband. The officers removed the firearm, which was a semiautomatic pistol loaded with five rounds of ammunition. In addition to the firearm, law enforcement also seized from Perdue and his vehicle methamphetamine, cocaine, and more than $1,100 in cash. Perdue has prior felony convictions and he is prohibited from possessing firearms or ammunition.

Purdue pleaded guilty to possession of a firearm by a convicted felon. Today, he was sentenced by the Honorable Kenneth D. Bell, who ordered Perdue to serve three years of supervised released following completion of his prison term.

U.S. Attorney King thanked the ATF and CMPD for their investigation of the case.

Assistant United States Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that $600,000 in federal grants has been allocated to Mecklenburg County by the Justice Department’s Office on Violence Against Women (OVW), to expand access to legal services and enhance processes impacting the safety of victims and their families.

“I am pleased to announce that the Western District of North Carolina has been awarded funding from the Office on Violence Against Women,” said U.S. Attorney King. “Federal grants are a vital resource for organizations with programs that support the Justice Department’s mission to improve access to legal services and enhance the safety of victims, survivors, and their families.”

The OVW grant was allocated under the Justice for Families (JFF) Program, authorized in the Violence Against Women Reauthorization Act of 2013, to improve the response of the civil and criminal justice system to families with a history of domestic violence, dating violence, sexual assault, and stalking, or in cases involving allegations of child sexual abuse. The grant was awarded by the JFF Program to Mecklenburg County Community Support Services, to fund a project related to supervised visitation and safe custody exchange services, provide legal representation and legal assistance services for victims of domestic violence, and expand legal services, including language access, to underserved communities and communities with limited English proficiency.

“The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system’s approach to supporting families affected by violence,” stated OVW Director Rosemarie Hidalgo. “These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don’t merely navigate our legal system, but genuinely find a path to justice and safety.”

Created in 1995, OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act (VAWA) and subsequent legislation. OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.

 

CHARLOTTE, N.C. – Hamzeh Jamal Alasfar, 31, and Tayseer Issam Alkhayyat, 35, both of Charlotte, were each sentenced today to 46 months in prison for a multi-year scheme to buy, sell, and ship fraudulently obtained and stolen new Apple iPhones to domestic and international buyers, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The defendants were also ordered to serve three years under court supervision after they are released from prison.

Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.

According to filed court documents and today’s sentencing hearing, from 2013 through 2020, Alasfar and Alkhayyat engaged in a scheme to purchase fraudulently obtained and stolen new Apple iPhones and other electronic devices, which they then sold and shipped to buyers located in other states and foreign countries, including dozens of packages to the United Arab Emirates and Hong Kong.

Alasfar and Alkhayyat operated multiple businesses located in Charlotte, including Cellport International Inc. (Cellport) and D Town Wireless (D Town), which the defendants used to carry out the scheme. The defendants and their employees at D Town and Cellport purchased new iPhones, which were often still sealed in the box, at prices significantly below retail value from individuals who obtained the devices through fraud and theft. Between January 2019 and January 2020, Alasfar and Alkhayyat sold and shipped through Cellport more than 20,000 new iPhones for more than $20 million, many of which were fraudulently obtained. 

On March 2, 2023, the defendants pleaded guilty to interstate and foreign transportation of stolen property. They will be ordered to report to the federal Bureau of Prisons to begin serving their prison terms upon designation of a federal facility.

This case was the result of the investigative efforts of CMPD and the Secret Service, which have established a fully integrated partnership to combat organized criminal groups operating in Charlotte. Through this partnership, this unit has successfully leveraged local and federal resources, personnel, expertise and authorities to identify and combat the criminals and criminal organizations that have the largest negative impact on the community.

Assistant U.S. Attorneys William T. Bozin and Michael E. Savage of the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – Jason Ian Kendrick, 44, of Boone, N.C., was sentenced today to 70 months in prison for possession of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also ordered Kendrick to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.

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

According to filed court documents and today’s sentencing hearing, beginning in January 2021, an undercover agent with the FBI observed that Kik Messenger user “jik2cool”,” later identified as Kendrick, was participating in private group chats dedicated to the distribution of child pornography. On multiple occasions, Kendrick also used Kik Messenger to access and view images and videos depicting the sexual abuse of children. In October 2021, the FBI also received a tip from the National Center for Missing and Exploited Children concerning the same Kik Messenger username, indicating that the user had shared files through the app that depicted child pornography.

On January 24, 2022, the FBI executed a search warrant at Kendrick’s residence. Over the course of the search, an FBI agent conducted a voluntary interview with Kendrick at his residence, where Kendrick admitted that he used Kik Messenger to access and view child pornography. Kendrick further admitted that he did not store child pornography locally, but instead he would download the app, locate child pornography, and then delete the app after viewing it. According to court records, Kendrick’s offense involved hundreds of images depicting the sexual abuse of children, including toddlers and infants.

On April 20, 2023, Kendrick pleaded guilty to possessing and accessing with intent to view child pornography containing a minor who had not attained the age of 12 years. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

The case was investigated by the FBI.

Assistant United States Attorney Mark T. Odulio of the U.S. Attorney’s Office in Charlotte prosecuted the case.

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

 

ASHEVILLE, N.C. – The founder and creator of an anti-government website was sentenced late yesterday in federal court in Asheville to 10 years in prison, for aiding and abetting threatening interstate communications, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Timothy Michael Dever, 57, of Naperville, Illinois, was ordered to serve three years under court supervision after he is released from prison. Dever’s co-defendant, Darris Gibson Moody, 57, of Waynesville, N.C., was sentenced to two years in prison and three years of supervised release for making a threatening interstate communication.

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

According to filed court documents and court proceedings, Dever was the creator and administrator of a website for a fictitious entity, the “People’s Bureau of Investigation” (PBI). As the website’s administrator, Dever hosted, maintained, and provided content for PBI, including templates for court judgments, or “Writs of Execution,” issued by the “U.S. Environmental District Court,” a fictitious court that purportedly had convicted hundreds of public officials and private individuals of various bogus crimes. The website claimed that the writs gave private citizens, like Moody, the authority to conduct a “citizen’s arrest” of the individuals on the fake writs. The website also claimed that those arrested could face a punishment of monetary fines, imprisonment, and even death, and that anyone who made a “citizen’s arrest” of the persons named in the writs was eligible to receive a monetary reward of up to $20,000. 

According to court documents and the sentencing hearing, Dever promoted the writs as a mechanism for removing federal, state, and local officials from their positions. Dever made the template for the fake writs available for download on PBI’s website, as well as other documents and videos that explained the purpose of the writs and how to serve them. For example, one video on the website was a recorded radio talk show, where Dever and another individual discussed how private citizens could arrest “a sheriff, a judge and a governor,” who they claimed to have been convicted in the “highest court of the land.” Dever also maintained on PBI’s website a list that contained the names, home addresses, and personal information of victims who had been falsely named as convicted defendants in the fake writs. Court records show that the PBI website listed the personal identifying information of over 900 victims, located in approximately 32 different states.

As Dever previously admitted in court, PBI’s website also enabled group members to use a digital app to have encrypted communications in online chatrooms and via text messages, and to share information on how to create, use, and serve the writs. Dever also used PBI’s website to raise funds by soliciting direct donations and selling PBI merchandise.

Moody was a like-minded PBI group member who accused her targets of having been convicted of corruption, environmental charges, and even treason. Moody used the PBI website to generate fake arrest writs for 57 individuals, most of whom resided in the Western District of North Carolina, including sheriffs, judges, and other government officials and private individuals, and used software to fax the fake arrest notices to the recipients.

"Dever's anti-government rhetoric and fake arrest writs were more than a nuisance. They put hundreds of lives at risk. Those who shared Dever's warped ideology, including Moody, became self-proclaimed bounty hunters that turned innocent victims into targets of harassment, intimidation, and death threats. But, unlike Dever and Moody's sham court proceedings, my Office has legitimate authority to hold these defendants accountable for their actions." 

Dena J. King, United States Attorney

“At its core, the FBI’s mission is to protect the American people and uphold the Constitution of the United States. While we celebrate the freedoms of our country, you cannot make up your own laws and threaten those who serve or are elected by our democracy,” said Special Agent in Charge DeWitt.

Dever pleaded guilty to five counts of aiding and abetting interstate threatening communication. Moody pleaded guilty to making an interstate threating communication. They are currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney King commended the FBI for their investigation of this case and thanked the Haywood County Sheriff’s Office for their assistance.

Assistant U.S. Attorney Don Gast of the U.S. Attorney’s Office in Asheville prosecuted the case.

 

ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced a Cherokee, North Carolina man for possession with intent to distribute methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Edward Dwayne Taylor, who is 35 years old and an Enrolled Member of the Eastern Band of Cherokee Indians, was ordered to serve 87 months in prison, followed by five years of supervised release.

Chief Carla Neadeau of the Cherokee Indian Police Department (CIPD) joins U.S. Attorney King in making today’s announcement.

According to filed court documents and court proceedings, on June 4, 2021, a CIPD officer conducted a traffic stop of a vehicle in Cherokee, knowing that the driver was operating the vehicle with a suspended license. Taylor was one of the passengers in the vehicle. Over the course of the traffic stop, law enforcement recovered from another passenger a bag that contained more than 130 grams of methamphetamine, digital scales, and small plastic baggies, items that are consistent with drug distribution. Court documents show that over the course of the investigation CIPD officers determined that the methamphetamine belonged to Taylor, and that the other passenger had agreed to hide the drugs at Taylor’s request.

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

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

Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.

 

 

CHARLOTTE, N.C. – A criminal indictment was unsealed in federal court today, charging five individuals with stealing dozens of high-end vehicles worth millions of dollars from dealerships located across the United States, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

U.S. Attorney King is joined in making today’s announcement by Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD).

The indictment charges Dewanne Lamar White, 43, of Sumter, South Carolina, Garyka Vaughn Bost, 24, of Denver, North Carolina, Kevin Ja’Coryen James Fields, 27, of Charlotte, Hosea Fernandez Hampton, Jr., 25, of Charlotte, and Reginald Eugene Hill, 23, of Charlotte, with conspiracy to transport, possess, and sell stolen vehicles in interstate commerce, and interstate transportation of a stolen motor vehicle. White, Fields, and Hampton are also charged with possession of a stolen motor vehicle.

According to allegations in the indictment, from 2021 to 2023, the defendants engaged in a conspiracy to steal luxury vehicles worth millions of dollars from dealerships in North Carolina, South Carolina, Georgia, Florida, Tennessee, Kentucky, Alabama, Mississippi, Louisiana, Indiana, Ohio, Pennsylvania, New Jersey, New York, and Arizona. The indictment alleges that the co-conspirators transported the stolen vehicles back to Charlotte and sold them locally at prices well below market value. The indictment further alleges that, to maximize profits, the co-conspirators stole luxury vehicles made by Bentley, BMW, Cadillac, Land Rover, Porsche, and Mercedes-Benz, and other expensive models from Chevrolet, Dodge, Ford, and other manufacturers.

According to allegations in the indictment, the defendants executed the thefts in a number of ways. In some instances, the co-conspirators visited dealerships posing as customers interested in purchasing the vehicles. After pretending to test drive or inspect the vehicles, the co-conspirators would allegedly swap the vehicles’ key fobs with similar ones, and later use the stolen key fobs to steal the vehicles. Other times, the indictment alleges that the co-conspirators employed methods like “smash and grab” thefts, where they would break into dealerships and locate keys to the high-end models, or break open lockboxes containing keys to luxury vehicles, and then drive the vehicles off the lot. The indictment alleges that Bost, Fields, and Hill often served as drivers in the conspiracy, and White and Hampton frequently paid them and other drivers for their work in the scheme. The indictment further alleges that on several occasions the defendants and their co-conspirators stole multiple vehicles simultaneously, resulting in hundreds of thousands of dollars in losses.

According to allegations in the indictment, once the stolen vehicles were taken off the dealership lots, the defendants avoided law enforcement detection by removing the GPS navigation and tracking systems from the stolen vehicles, attaching fictitious dealer tags or stolen license plates on the vehicles, and replacing the vehicles’ authentic Vehicle Identification Numbers, among other things.

In announcing the federal indictment, U.S. Attorney King said, “We will not tolerate brazen theft schemes that cost businesses and consumers millions of dollars. I want to thank our federal and local law enforcement partners for their incredible work with this ongoing investigation that has led to today’s charges.”

“Stopping schemes like this is critical as it not only protects businesses, but also it helps protect our economy,” said Special Agent in Charge Martinez. “We worked closely with a number of our law enforcement partners to shut down this multimillion-dollar operation and bring the perpetrators to justice and I am happy with the success of the operation.”

“No matter how complicated an interstate theft ring may seem, the FBI is poised to uncover, dissect, and dismantle the scheme,” said Special Agent in Charge DeWitt. “We are committed to working with our partners to ensure justice is served.”

The charge of conspiracy to transport, possess, and sell stolen vehicles in interstate commerce carries a maximum penalty of five years in prison and a $250,000 fine. The charge of interstate transportation of a stolen motor vehicle and possession of a stolen vehicle each carry a statutory maximum penalty of 10 years in prison and a $250,000 fine.

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

U.S. Attorney King thanked HSI, FBI, and CMPD for their investigation of the case

and recognized the contributions of the York County South Carolina Sheriff’s Office and many other state and local law enforcement partners that contributed to the investigation.

Assistant U.S. Attorneys William Bozin and Daniel Ryan of the U.S. Attorney’s Office in Charlotte are prosecuting the case. 

CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has returned a criminal indictment, charging Michelle Wilshire, 48, of Hickory, N.C., with multiple counts of wire fraud, tax fraud, and money laundering, for allegedly embezzling more than $900,000 from her employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

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

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

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

Wilshire is charged with six counts of wire fraud, which carry a maximum penalty of 20 years in prison and a $250,000 fine per count; five counts of making and subscribing a false tax return, which carry a statutory maximum term of one year in prison per count; and two counts of money laundering which carry a maximum penalty of 20 years in prison and a $500,000 fine or twice the value of the property involved in the transaction.

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

Wilshire’s initial court appearance in Charlotte has been scheduled for Tuesday, August 29, 2023, at 10:15 a.m.

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

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