Western District of North Carolina

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that a U.S. Attorney’s Office employee and a community organization in Asheville were recognized by the North Carolina Gang Investigators Association (NCGIA) today, at the annual Gangs Across the Carolinas conference in Winston-Salem.

The NCGIA is an association of law enforcement and criminal justice professionals, dedicated to the prevention of gang-related activity within the state of North Carolina. Each year, NCGIA hosts the Gang Free North Carolina (GFNC) Awards, to recognize the outstanding accomplishments of law enforcement personnel, community programs, and criminal justice professionals in the Carolinas for their work in their field.

This year, the NCGIA recognized Shirley Rutledge who works as a Victim Witness Coordinator in the U.S. Attorney’s Office and is responsible for providing services to victims and witnesses of federal crimes. Ms. Rutledge is the recipient of the NCGIA’s Civilian of the Year Award, in recognition of her exemplary work with the Emergency Witness Assistance Program (EWAP). The program provides emergency services and assistance to witnesses and helps them participate in the prosecution of federal cases. As part of her duties, Ms. Rutledge works to ensure that federal witnesses receive the support and services they need throughout the litigation process.

“Shirley is a dedicated public servant whose work with witnesses is vital to the successful prosecution of federal cases,” said U.S. Attorney King. “Shirley has a thorough knowledge of the EWAP program and always goes the extra mile to ensure that witnesses are treated fairly and respectfully and they are afforded all the protections and services they need to help federal prosecutors with their cases. Shirley’s skills are invaluable to my Office and to law enforcement, and her work enables us to continue to make cases against the most violent offenders and hold criminals accountable for their actions.”

The NCGIA also recognized Keynon Lake and his organization “My Daddy Taught Me That” (MDTMT), for its work with young males in the greater Asheville area. MDTMT is a youth development program designed to support young men through advocacy, education, and mentoring. The program focuses on helping adolescent males to transition successfully into adulthood by cultivating and developing strong interpersonal skills, good decision-making, acceptance of responsibility, and accountability for their actions.

“Mr. Lake and his organization provide important youth intervention and development services to underserved communities in Asheville,” said U.S. Attorney King. “I want to thank Mr. Lake for his outstanding work in the area of youth and community development and violence prevention. His work with young people complements law enforcement efforts to increase the health, safety and well-being of those we serve, and fulfil our mission to keep communities strong and thriving.”

Additional information about the U.S. Attorney’s Office Victim Witness Assistance Program can be found here.

 

CHARLOTTE, N.C. – A Georgia man who committed multiple armed bank robberies in North Carolina, Tennessee, and Georgia, was sentenced to 22 years in prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Johnny Jermaine Davis, 40, of Kennesaw, Georgia, was also ordered to serve five years under court supervision after he completes his prison term and to pay over $65,000 in restitution.

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

On September 1, 2022, Davis pleaded guilty to six counts of bank robbery and one count of brandishing a firearm in furtherance of a crime of violence. In addition to charges filed in the Western District of North Carolina, Davis was charged with bank robbery by the U.S. Attorneys’ Offices in the Eastern District of North Carolina, the Middle District of North Carolina, the Eastern District of Tennessee, the Middle District of Tennessee, and the Northern District of Georgia. Those federal cases were subsequently transferred to the U.S. Attorney’s Office in the Western District of North Carolina for consolidated prosecution.

According to filed court documents and court proceedings, between January and May 2021, Davis robbed seven banks in three states, including two banks in Asheville, N.C. Davis brandished a firearm during each of these robberies and discharged a firearm during one robbery.

The Bank Robbery in East Ridge, Tennessee

Court records show that on January 6, 2021, at approximately 3:00 p.m., Davis robbed a Regions Bank in East Ridge, Tennessee. After he entered the bank, Davis approached the bank teller and asked to cash a check. Davis then drew a firearm and vaulted over the counter. Davis demanded money from the bank tellers and discharged the firearm, which caused a window to shatter. Davis then took money from the teller drawers and fled the scene.

The First Bank Robbery in Asheville, North Carolina

On February 25, 2021, at approximately 3:02 p.m., Davis entered the BB&T bank located at 1653 Hendersonville Road, in Asheville. Davis was wearing a blue and white baseball cap, sunglasses, and a surgical mask. Davis walked toward the teller area of the bank and pretended to cash a check. Court documents show that Davis put on a black glove and pulled out a semi-automatic handgun, pointed the firearm at a teller and yelled, “Don’t move.” Davis then jumped over the counter, ordered the bank employees to lay on the ground, and began to grab cash from the teller drawers. Davis also told the bank employees he had planted a device that would release toxic gas if they moved before two minutes passed. Davis finished emptying the cash drawers and exited the bank.

The Bank Robbery in Chapel Hill, North Carolina

On April 3, 2021, at approximately 12:40 p.m., Davis robbed a PNC bank located at 841 Willow Drive, in Chapel Hill, North Carolina. According to court records, Davis entered the bank wearing a UNC baseball cap, a mask, sunglasses, and surgical gloves. He approached a teller and, as with previous bank robberies, he inquired about cashing a check. After he was told he needed two forms of identification, Davis left the bank. He returned soon thereafter and jumped over the counter while brandishing a semiautomatic pistol. Davis then ordered two tellers to step away from the counter and lie face-down on the floor. He then ordered one of the tellers to unlock the drawers. The teller complied, and Davis ordered her back to the floor. Davis took cash from the teller drawers and fled the scene.

The Bank Robbery in Spring Hill, Tennessee

On April 9, 2021, at approximately 12:06 p.m., Davis entered the First Citizens National Bank located at 2035 Wall Street in Spring Hill, Tennessee, wearing a UNC baseball cap, a surgical mask, sunglasses, and blue surgical gloves. Once again, Davis approached the teller and asked for a pen so that he could cash a check. Davis then drew a semiautomatic pistol, grabbed a teller by the wrist, and pointed the gun directly at her. Davis then ordered all the tellers to lie down on the floor and demanded money. A bank teller opened the bank vault and Davis took cash. Davis then moved two bank employees into a utility room and closed the door, before exiting the bank.

The Bank Robbery in Fayetteville, North Carolina

On May 8, 2021, at approximately 12:08 p.m., Davis entered the First Horizon Bank at 929 S. McPherson Church Road, in Fayetteville, North Carolina, wearing a baseball hat, sunglasses, black gloves, and a mask. Upon entering the bank, Davis approached a teller and asked him if he could cash a Wells Fargo check. The teller said that he could not and began to search for nearby Wells Fargo bank locations in an effort to assist. According to court documents, Davis then drew a black semiautomatic pistol and whispered to the teller that he did not want to hurt anyone. Davis ordered the teller to move behind the teller stations, and then pointed the gun at another teller and ordered them both to lie down on the floor. Davis demanded access to a cash machine, then the safe, and then the vault; but each time the tellers explained that they did not have ready access to any of those storage areas. Davis moved the two tellers at gunpoint to a nearby room and ordered them to stay put. Davis then found a bank employee working in another office, pointed the gun at her, and demanded to know how to access the safe. When the employee told Davis she did not know, he moved the bank employee into the room with the other tellers. Davis took cash from a desk drawer before he left the bank.

The Second Bank Robbery in Asheville, North Carolina

On May 20, 2021, at approximately 4:42 p.m., Davis entered the Wells Fargo bank located at 800 Merrimon Ave., in Asheville. According to court records, Davis was wearing a baseball cap, sunglasses, and a surgical mask. As in previous bank robberies, Davis walked to the counter and told the teller he wanted to cash a check. When the teller asked for identification, Davis left the bank purportedly to retrieve his ID. Davis returned a short time later, approached the counter, and drew a semi- automatic handgun and pointed it at the teller. Davis then jumped over the counter and told all four bank employees to get down on the ground. Once all four bank employees were on the floor, Davis emptied the cash drawers, slammed the counter, and ordered the employees not to move for two minutes because he had placed a motion sensor. Davis then fled the scene.

The Bank Robbery in Rome, Georgia

According to court documents, on May 28, 2021, at approximately 10:50 a.m., Davis entered the SunTrust (now Truist) bank located at 2401 Shorter Avenue, in Rome, Georgia, wearing a hat, sunglasses, and a mask. After he entered the bank, Davis approached a teller and inquired about opening an account but then left the bank. At approximately 11:21 a.m., Davis re-entered the bank, walked into an occupied office, and at gunpoint walked the bank employee out of the office and toward the teller counter. Davis then ordered the tellers to lie down on the floor and vaulted over behind the counter while brandishing the firearm. Another bank employee entered the room and Davis pointed the gun at her and ordered her to get on the floor before he took cash from the bank and fled the scene.

On June 9, 2021, the FBI executed a search warrant at Davis’s home in Georgia. Davis was arrested at the scene. FBI agents also seized several items of clothing consistent with items depicted in surveillance footage at the various robberies, including shoes, a hat, pants, and a jacket. FBI agents also found a firearm that was consistent with the firearm Davis used during

the robberies.

Davis is currently 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 commended the FBI in Asheville, the Asheville Police Department, and the Hendersonville Police Department for their investigation of the case in Western North Carolina and thanked the FBI field offices and local law enforcement agencies in North Carolina, Tennessee, and Georgia for their invaluable assistance.

U.S. Attorney King also thanked the U.S. Attorneys’ Offices in the Middle and Eastern Districts of North Carolina, the Middle and Eastern Districts of Tennessee, and the Northern District of Georgia for their coordination and cooperation throughout Davis’s prosecution.

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

 

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CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Aspirar Medical Lab, LLC (Aspirar) and owner Pick Chay (Chay), located in Cary, North Carolina, have agreed to pay $1,951,090 to resolve allegations that they violated the False Claims Act by knowingly billing North Carolina Medicaid (Medicaid) for urine drug tests that were medically unnecessary and tainted by illegal kickbacks.

The United States alleged that from March 25, 2016, through September 19, 2017, Aspirar submitted claims to Medicaid for urine drug tests that were false. The claims were false because they were tainted by an illegal kickback arrangement between Aspirar and BPolloni Consulting, LLC (BPolloni), an entity that referred urine drug tests to Aspirar. Under the arrangement, Aspirar paid BPolloni for each urine drug test that BPolloni or another entity, Do It 4 the Hood Corporation (D4H), referred to Aspirar. The Chief Executive Officer of BPolloni and other individuals who operated D4H previously pleaded guilty to conspiracy to commit health care fraud and Anti-Kickback Statute violations arising from D4H’s illegal kickback arrangements with urine drug testing laboratories.

In addition to being tainted by illegal kickbacks, the United States alleged that claims for drug tests that Aspirar submitted to Medicaid were false because the tests were medically unnecessary. Specifically, the orders for the tests were not patient-specific and did not reflect a qualified medical provider’s determination of the patient’s need for the testing.

“Illegal referral and kickback schemes increase profits for wrongdoers and cause taxpayer-funded health care programs like Medicaid to pay for items or services that patients may not need,” said U.S. Attorney King. “The resolution of this case demonstrates our Office’s continuing commitment to hold all responsible parties to account for the submission of claims to Medicaid and other federally funded health care programs that are not medically necessary and are tainted by illegal kickbacks.”

The civil settlement and resolution of claims obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office and the FBI in Charlotte, with assistance from the Medicaid Investigations Division of the North Carolina Attorney General’s Office, and the Office of Inspector General of the United States Department of Health and Human Services.

The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act.

Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

CHARLOTTE, N.C. – Shannon Demond Lawrence, 45, of Matthews, N.C., has been sentenced to 176 months in prison followed by three years of supervised release for cocaine distribution and illegal gun possession, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. At today’s hearing, the Court enhanced Lawrence’s sentence due to his classification as a Career Offender, stemming from his multiple prior criminal convictions, to include drug distribution and firearms offenses.

U.S. Attorney King is joined in making today’s announcement by Bennie Mims, 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).

According to filed court documents and court proceedings, law enforcement initiated a federal investigation into Lawrence for suspected drug trafficking. Court documents show that, on multiple occasions between October and November 2021, Lawrence sold cocaine and fentanyl to an undercover detective. During two drug transactions, the undercover detective observed that Lawrence possessed firearms, including an AK-47 assault rifle. Court records show that, in addition to selling narcotics, Lawrence sold the undercover detective two firearms, one of which was loaded.

On August 23, 2022, Lawrence pleaded guilty to distributing cocaine and possession of a firearm by a convicted felon. 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.

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

The prosecution was handled by Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville. 

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.

A Jamaican national, who was previously extradited to the United States from Jamaica, pleaded guilty in the U.S. District Court for the Western District of North Carolina in connection with a fraudulent Jamaica-based lottery scheme that targeted elderly victims in the United States.

According to court documents, Antony Linton Stewart, 39, of St. James Parish, Jamaica, pleaded guilty to one count of conspiracy to commit mail and wire fraud.

As part of his plea agreement, Stewart admitted that he contacted elderly Americans by telephone and falsely told them that they had won money and other prizes in a sweepstakes or lottery. Stewart told victims that they needed to send money to pay fees and taxes on their winnings. Stewart contacted victims repeatedly for as long as they could be persuaded to send additional money. At Stewart’s direction, victims used wire transfers and the U.S. Postal Service, among other means, to send money to individuals in the United States and Jamaica who served as intermediaries and transmitted the money to Stewart. In fact, no lottery ever existed, and no victim ever received any money or other prizes. The scheme defrauded victims out of hundreds of thousands of dollars.

“The Department of Justice’s Consumer Protection Branch is committed to investigating fraudulent schemes targeting elderly Americans, wherever those schemes are based,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Stewart is the latest example in the department’s ongoing efforts to root out and deter fraud from foreign locations that targets our most vulnerable consumers.”

“Each year, millions of older Americans suffer heavy financial losses in the hands of scammers operating in the United States and abroad,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “Today’s guilty plea underscores our efforts to investigate and bring to justice perpetrators of elder fraud schemes no matter where they originate. We will continue to join forces with our law enforcement counterparts to do all we can to stop these criminals from stealing from our seniors.”

“The U.S. Postal Inspection Service (USPIS) is committed to investigating those who use the U.S. Mail to commit fraud and target elderly and vulnerable American citizens both domestically and abroad,” said Inspector in Charge Christopher A. Nielsen of the USPIS Philadelphia Division. “Today’s plea exemplifies the unwavering efforts of Postal Inspectors in collaboration with our law enforcement partners – here in the United States and around the world – to bring these callous criminals to justice.”

The USPIS investigated the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and extradition of Stewart. The U.S. Marshals Service also provided significant assistance.

The case is being prosecuted by Senior Trial Attorney Raquel Toledo and Trial Attorney Ryan E. Norman of the Civil Division's Consumer Protection Branch, with the assistance of Assistant U.S. Attorneys Jenny G. Sugar and Daniel Ryan for the Western District of North Carolina.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish, and other languages are available.

For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of North Carolina visit their website at www.justice.gov/usao-wdnc. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.

CHARLOTTE, N.C. – A Jamaican national, who was previously extradited to the United States from Jamaica, pleaded guilty in the U.S. District Court for the Western District of North Carolina in connection with a fraudulent Jamaica-based lottery scheme that targeted elderly victims in the United States.

According to court documents, Antony Linton Stewart, 39, of St. James Parish, Jamaica, pleaded guilty to one count of conspiracy to commit mail and wire fraud.

As part of his plea agreement, Stewart admitted that he contacted elderly Americans by telephone and falsely told them that they had won money and other prizes in a sweepstakes or lottery. Stewart told victims that they needed to send money to pay fees and taxes on their winnings. Stewart contacted victims repeatedly for as long as they could be persuaded to send additional money. At Stewart’s direction, victims used wire transfers and the U.S. Postal Service, among other means, to send money to individuals in the United States and Jamaica who served as intermediaries and transmitted the money to Stewart. In fact, no lottery ever existed, and no victim ever received any money or other prizes. The scheme defrauded victims out of hundreds of thousands of dollars.

“The Department of Justice’s Consumer Protection Branch is committed to investigating fraudulent schemes targeting elderly Americans, wherever those schemes are based,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Stewart is the latest example in the department’s ongoing efforts to root out and deter fraud from foreign locations that targets our most vulnerable consumers.”

“Each year, millions of older Americans suffer heavy financial losses in the hands of scammers operating in the United States and abroad,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “Today’s guilty plea underscores our efforts to investigate and bring to justice perpetrators of elder fraud schemes no matter where they originate. We will continue to join forces with our law enforcement counterparts to do all we can to stop these criminals from stealing from our seniors.”

“The U.S. Postal Inspection Service (USPIS) is committed to investigating those who use the U.S. Mail to commit fraud and target elderly and vulnerable American citizens both domestically and abroad,” said Inspector in Charge Christopher A. Nielsen of the USPIS Philadelphia Division. “Today’s plea exemplifies the unwavering efforts of Postal Inspectors in collaboration with our law enforcement partners – here in the United States and around the world – to bring these callous criminals to justice.”

The USPIS investigated the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and extradition of Stewart. The U.S. Marshals Service also provided significant assistance.

The case is being prosecuted by Senior Trial Attorney Raquel Toledo and Trial Attorney Ryan E. Norman of the Civil Division's Consumer Protection Branch, with the assistance of Assistant U.S. Attorneys Jenny G. Sugar and Daniel Ryan for the Western District of North Carolina.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish, and other languages are available.

For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of North Carolina visit their website at www.justice.gov/usao-wdnc. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.

CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell has sentenced Alfonso Roman Brito, 44, to 25 years 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.

Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), Sheriff Banks Hinceman of the Burke County Sheriff’s Office, and Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office join U.S. Attorney King in making today’s announcement.

According to filed court documents and evidence introduced at trial Brito’s trial, in 2019, law enforcement were conducting an investigation into a Drug Trafficking Organization (DTO) operating in Catawba and Burke Counties and surrounding communities. As trial evidence established, the investigation determined that Brito, who was an inmate in the Georgia Department of Corrections, was in charge of coordinating the shipment of multiple kilograms of methamphetamine from Atlanta into Western North Carolina. According to information presented at trial, between 2019 and 2021, Brito orchestrated the delivery of more than 100 kilograms of methamphetamine from Georgia to North Carolina, which was then sold to drug networks in the area for local distribution.

In December 2022, a federal jury convicted Brito of conspiracy to distribute and to possess with intent to distribute methamphetamine and distribution of methamphetamine. Six co-defendants have also been sentenced for drug related offenses in connection with this case:

• Charles Ray Hildebran was sentenced to 180 months in prison and five years of supervised release.
• Jeffrey Ben Pavkovich was sentenced to 151 months in prison and five years of supervised release.
• Billy Dean Potter was sentenced to 132 months in prison and three years of supervised release.
• Phillip Anthony Godfrey was sentenced to 120 months in prison and five years of supervised release.
• Britton Nicole Metcalf was sentenced to 120 months in prison and five years of supervised release.
• Marcos Alan Martinez was sentenced to 46 months in prison and two years of supervised release.

In making today’s announcement U.S. Attorney King commended the DEA, HSI, the Burke County Sheriff’s Office, and the Catawba County Sheriff’s Office for leading the investigation. U.S. Attorney King also thanked the Caldwell County Sheriff’s Office, the Newton Police Department, the Hickory Police Department, and the Georgia Department of Corrections for their assistance in the investigation.

Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville 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. – Jermaine Douglas Grandy, 42, Lenoir, N.C., has been sentenced to 35 years in prison followed by five years of supervised release for trafficking fentanyl and illegal gun possession, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Bennie Mims, 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 Sheriff Alan C. Jones of the Caldwell County Sheriff’s Office join U.S. Attorney King in making today’s announcement.

According to evidence presented at Grandy’s trial and documents filed with the court, between December 2020 and February 2021, Grandy conspired with others to distribute and to possess with intent to distribute fentanyl in Caldwell County and surrounding areas. Trial evidence established that Grandy obtained the drugs from a supply source in Arizona, and frequently travelled there to purchase fentanyl pills in bulk quantities. On February 14, 2021, as Grandy was returning to North Carolina from a trip to Arizona, law enforcement conducted a traffic stop of Grandy’s vehicle in Granite Falls, N.C. Upon searching the vehicle, law enforcement located inside the vehicle three loaded 9mm pistols, and approximately 34,221 pills wrapped in fourteen bundles concealed in the air vent under the hood of the car. Later the same day, law enforcement executed a search warrant at a residence associated with Grandy, from which they seized a money counter, two digital scales, and other items consistent with the packaging and distribution of narcotics. Law enforcement also seized 29 illegal firearms, including semi-automatic rifles and handguns, ammunition, and approximately 79 magazines.

In February 2023, a federal jury convicted Grandy of conspiracy to distribute and to possess with intent to distribute fentanyl, possession with intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking crime, and possession of a firearm by a convicted felon. Grandy is currently in federal custody and will be transferred to the custody of the federal Bureau of Prison upon designation of a federal facility.

In making today’s announcement, U.S. Attorney King commended the ATF, the SBI, and the Caldwell County Sheriff’s Office for their investigation of the case and thanked the Catawba County Sheriff’s Office, the Hickory Police Department, and the Drug Enforcement Administration for their assistance.

Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville is prosecuting 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 a federal jury has convicted Jonathan Craig Otuel, 36, of Stallings, N.C., of conspiracy to traffic methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. Otuel previously pleaded guilty to possession of a firearm by a convicted felon.

According to court documents, trial evidence, and witness testimony, on November 19, 2019, officers with the Pineville Police Department responded to a call for service at a hotel room, where they located Otuel and three other individuals. Officers also located methamphetamine. Trial evidence established that a search warrant for the hotel room was issued. During the search, law enforcement recovered multiple bags of methamphetamine, and a firearm. Law enforcement also recovered from the hotel parking lot an additional firearm, which the defendant had thrown over the balcony. Over the course of the investigation, law enforcement determined that Otuel was responsible for trafficking significant amounts of methamphetamine in Mecklenburg and Gaston Counties. 

Otuel remains in federal custody. A sentencing date has not been set. The charges of conspiracy to traffic methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime each carry a statutory maximum sentence of life in prison. The charge of possession of a firearm by a convicted felon carries a maximum sentence of ten years in prison. A sentencing date has not been set.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

In making today’s announcement, U.S. Attorney King thanked Homeland Security Investigations, the Drug Enforcement Administration, the Pineville Police Department and the Gaston County Police Department for their investigation of the case.

Assistant U.S. Attorneys Regina Pack and Timothy Sielaff of the U.S. Attorney’s Office in Charlotte are prosecuting the case.

CHARLOTTE, N.C. – Stephen Allen Hill, 75, of Boone, N.C. was sentenced late yesterday to 48 months in prison for possession of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Hill was ordered to serve 20 years of supervised release, to register as a sex offender after he is released from prison, and to pay a $100 special assessment, a $5,000 Justice for Victims of Trafficking Act (JTVA) assessment, a $17,000 special assessment under the Amy, Vicky, and Andy Child Pornography Victim Assistance Act (AVAA), and a $30,000 fine.

Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), and Chief Andy LeBeau of the Boone Police Department join U.S. Attorney King in making today’s announcement.  

According to court documents and court proceedings, in October 2020, law enforcement became aware that an individual, later identified as Hill, was using a peer-to-peer network to share child pornography with other users. According to court records, on January 15, 2021, law enforcement executed a search warrant at Hill’s residence in Boone. During the execution of the search warrant, law enforcement seized several electronic devices, including a computer, hard drives, and Hill’s cellphone. A forensic examination of the devices revealed that they contained images and videos depicting the sexual abuse of children, including toddlers and infants engaging in sadistic and masochistic conduct. In total, Hill possessed in excess of 29,000 images and 340 videos depicting child pornography.

On December 16, 2022, Hill pleaded guilty to possession of child pornography that involved a prepubescent minor who had not attained 12 years of age.

In making the announcement, U.S. Attorney King thanked the SBI and the Boone Police Department for their investigation of the case.

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

This case is 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. – U.S. Attorney Dena J. King along with federal prosecutors and office personnel with the Western District of North Carolina will join community organizers,

National Night Out

neighbors, and law enforcement partners to participate in National Night Out events on Tuesday, August 1, 2023.

National Night Out (NNO) is an annual community-building campaign that promotes partnerships and camaraderie between law enforcement and the communities they serve to make neighborhoods safer places to live. Millions take part in National Night Out across thousands of communities throughout the country on the first Tuesday of August in most areas of the country. 

During this year’s National Night Out, U.S. Attorney King and members of her Office will attend community events organized by the Hidden Valley and the Historic Camp Greene neighborhoods, and the West Boulevard Neighborhood Coalition.

“The first and most important job of law enforcement is to protect the rights and safety of our communities and address crime problems. To do that, we must understand the unique challenges communities face, and that begins with community engagement. Participation in events like National Night Out provides an opportunity to increase public trust, strengthen ties between law enforcement and the communities we serve, and demonstrates our commitment to sustaining strong and safe neighborhoods,” said U.S. Attorney King.

National Night Out was established in 1984 with funding from the Bureau of Justice Assistance of the U.S. Department of Justice. The program is administered by the National Association of Town Watch, a nationwide non-profit organization.

Coordinated by local law enforcement and trained volunteers, National Night Out provides a great opportunity to bring police and neighbors together under positive circumstances. Neighborhoods host block parties, cookouts, festivals, parades, safety demonstrations, seminars, youth events, visits from emergency personnel, and more. National Night Out sends a message that neighbors are united and working together to keep their communities and each other safe.

For more information, visit https://natw.org/.

CHARLOTTE, N.C. – A federal indictment was unsealed in federal court today, charging Kristy Lawrence, 44, of Monroe, N.C., with wire fraud, for allegedly embezzling more than $2.3 million from her employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

According to allegations in the indictment, from 2016 to April 2022, Lawrence was employed by a small family business located in Monroe. Over the course of her employment, Lawrence allegedly worked in a purchasing and accounting function for the business and handled the company’s books and records. The indictment alleges that Lawrence embezzled millions from the company by making multiple unauthorized electronic transfers from the company’s bank account to make payments for her personal benefit, including to pay her credit cards. Lawrence allegedly covered up the fraud by using her position and access to falsify documents and make fraudulent accounting entries in the company’s books and records. Lawrence’s alleged embezzlement scheme was uncovered after the defendant was on extended leave and another employee took over her responsibilities.

Lawrence was released on bond after her initial appearance. The wire fraud charge carries a maximum sentence of 20 years in prison and a $250,000 fine.

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 the FBI in Charlotte and the Union County Sheriff’s Office for their investigation of the case.

Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is prosecuting the case. 

 

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Delores Jordan, 54, of Charlestown, Indiana, to 30 months in prison followed by three years of supervised release for her role in a $15 million conspiracy to defraud the North Carolina Medicaid program (Medicaid), announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Bell also ordered Jordan to pay $5,879,340 in restitution.

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), Charlotte Division, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), and Attorney General Josh Stein, who oversees the North Carolina Medicaid Investigations Division (MID).

According to filed court documents and court proceedings, Jordan was the owner of Legacy Housing, which provided subsidized housing to tenants in Charlotte and Greensboro. Jordan’s co-conspirator, Donald Booker, owned and operated 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. Court documents show that from January 2018 to December 2020, Jordan conspired with Booker and others to defraud Medicaid via a fraudulent drug testing scheme of urine samples of Medicaid-eligible beneficiaries.

As Jordan previously admitted in court, she along with 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 Jordan a kickback from the Medicaid reimbursements on the drug testing. Jordan also conspired with Booker to execute a conspiracy to launder the fraudulent proceeds in order to conceal and disguise the nature and source of the illegal kickback payments for the illicit drug testing referrals.

On December 9, 2022, Jordan pleaded guilty to health care fraud conspiracy and conspiracy to commit money laundering. In January 2023, Booker was convicted at trial of conspiracy to commit health care fraud, multiple violations of the Anti-Kickback Statute, money laundering conspiracy, and money laundering. Booker is awaiting sentencing.

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

The prosecution for the government is handled by Assistant U.S. Attorneys Graham Billings and Mike Savage of the U.S. Attorney’s Office in Charlotte.   

     

CHARLOTTE, N.C. –Spenc’r Denard Rickerson, 36, of Claremont, N.C., was sentenced today to six years in prison followed by two years of supervised release for committing bank robbery, wire fraud, and aggravated identity theft, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Rickerson was also ordered to pay restitution in the amount of $87,583.

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 court documents and evidence presented at Rickerson’s trial, between June 30, 2020, and March 20, 2021, Rickerson used false information to apply for a Paycheck Protection Program (PPP) loan and multiple Economic Injury Disaster Loans (EIDL) guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Trial evidence established that, in order to obtain the PPP loan, Rickerson submitted a fraudulent application for a non-existent company that contained a number of false information, including the purpose of the loan and the company’s payroll costs. Rickerson also submitted fraudulent applications for several loans under the EIDL program, in which he provided fake information about the number of company employees and gross revenues. As a result of the fraudulent PPP and EIDL loan applications, Rickerson received more than $84,233 in fraudulent funds intended to assist businesses impacted by the coronavirus pandemic.

Court documents show that, in addition to the fraudulent loan scheme, on March 18, 2021, Rickerson committed an armed robbery of a BB&T branch located at 12 North Main Avenue, in Newton, N.C. Rickerson used the stolen funds from the fraudulent loan scheme and the bank robbery to pay bills and to buy cryptocurrency.

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

The FBI investigated the case with the assistance of the Newton Police Department.

Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte handled the prosecution.

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. – United States Attorney Dena J. King has been selected to serve as Chair of the Civil Rights Subcommittee of the Attorney General’s Advisory Committee (AGAC) of U.S. Attorneys.

Since 1973, the AGAC has advised the Attorney General on matters of policy, procedure, and management impacting U.S. Attorneys’ Offices and represents the views of federal prosecutors across the country.

As Chair of the Civil Rights Subcommittee, U.S. Attorney King will spearhead the efforts of the Subcommittee to guide the AGAC on critical civil rights issues. U.S. Attorney King will also work with all 94 U.S. Attorneys’ Offices to provide leadership and make recommendations to the Attorney General and the Department of Justice through the AGAC, related to the protection and enhancement of the civil and constitutional rights of all people in the United States, with a special focus on our country’s most vulnerable populations.

“It is a great honor to serve as Chair of the AGAC’s Civil Rights Subcommittee,” said U.S. Attorney King. “I am looking forward to working collaboratively with my colleagues to continue to champion the Department’s efforts to advance civil rights, strengthen community trust, remove barriers to justice and fairness, and enhance inclusion and equal treatment for everyone in our society.”

U.S. Attorney King will continue to serve as a member of the Native American Issues Subcommittee (NAIS), which she previously chaired, and the Subcommittees for Violent and Organized Crime, and Law Enforcement Coordination, Victim Assistance and Community Relations.

 

CHARLOTTE, N.C. – Wynn A.D. Charlebois, 53, of Charlotte, pleaded guilty to wire fraud today, for leading a multi-million dollar investment fraud scheme, 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 in North Carolina, 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 the plea agreement, from 2015 through October 2022, Charlebois used companies he owned and controlled, including WC Private, Wilcox Hybrid, Damon Investments, and others, to perpetrate a multi-million dollar investment scheme that caused at least 39 victim investors and entities to lose more than $5.3 million. In furtherance of the scheme, Charlebois recruited victim investors including friends, family members, and social acquaintances, by falsely promising their money would be invested in risk-free investments, subscription agreements, and loans. Court documents show that Charlebois fraudulently asserted in the investment agreements presented to victim investors that he and his entities held stock options for particular companies, and that the investors could purchase the options and gain specified profits. Contrary to the defendant’s claims, instead of using the investors’ money as promised, Charlebois used the funds to make Ponzi-style payments to other investors, and on personal expenses including to pay private school tuition, make mortgage payments, and pay for luxury travel and meals at restaurants.

Charlebois was released on bond following his plea hearing. The wire fraud charge carries a maximum penalty of 20 years in prison and a $500,000 fine. A sentencing date has not been set.

The FBI and USPIS investigated 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. – Gustavo Guzman, 60, previously of Fullerton, Calif., pleaded guilty to securities fraud today for orchestrating a $2 million investment fraud scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, and North Carolina Secretary of State Elaine F. Marshall join U.S. Attorney King in making the announcement.

According to admissions Guzman made in connection with his guilty plea and filed court documents, from April 2010 to August 2015, Guzman, through various entities he controlled, including G2 Asset Management and East Egg Private Equity, defrauded approximately 10 investors of at least $2 million, by falsely representing that he would use the investors’ money to trade in options and other similar investments. Instead of investing the funds as promised, Guzman stole a substantial portion of the investors’ money and used it to fund his personal lifestyle, including to make large credit card payments and cash withdrawals, and to pay for personal expenditures. Guzman suffered massive trading losses with the money that he did invest and used some of the victim’s money to make Ponzi-style payments to other investors. Guzman admitted that in order to conceal the trading losses and the fraudulent scheme, and to prevent his victims from redeeming their investments and complaining to authorities, he lied to his victims about the status of their investments, and provided them with fake documents, including sham IRS forms and fraudulent account statements.

Guzman has been in federal custody since he was extradited from Australia to the United States in November 2022. At sentencing, he faces a sentence of up to 20 years in prison and a $5 million fine.  A sentencing date has not been set. The U.S. Securities and Exchange Commission conducted a parallel investigation that resulted in the entry of a default judgment against Guzman in Civil Action No. 3:17-cv-00276 (WDNC).

In making todays’ announcement, U.S. Attorney King commended the FBI in Charlotte and the Securities Division of the North Carolina Department of the Secretary of State for their investigation of the case. U.S. Attorney King also thanked the U.S. Marshals Service and the Justice Department’s Office of International Affairs for their significant support with the defendant’s extradition and with obtaining evidence from Australian authorities.  

Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is prosecuting the case. 

 

 

CHARLOTTE, N.C. – Jeannetta Blackmon, also known as Jeannetta Regan, 48, of Charlotte, pleaded guilty today to wire fraud and money laundering for obtaining more than $1.5 million in fraudulent Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan (EIDL) Program loans for herself and her customers, 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 in North Carolina joins U.S. Attorney King in making today’s announcement.

According to filed plea documents, other court filings, and Blackmon’s admissions during the plea hearing, from April 2020 to November 2021, Blackmon executed a scheme to defraud the U.S. Small Business Administration (SBA) and SBA-backed lenders by obtaining fraudulent COVID-19 disaster relief funds for her businesses, J Renee Enterprises, Jeannetta Renee Girls Talk (JR Girls Talk), and Jrenee Investments (JR Investments). To obtain the relief funds, Blackmon submitted applications and supporting documents that contained false and fraudulent information regarding her businesses’ income, number of employees, gross revenues, and expenses. Blackmon also created and submitted fabricated bank statements and checks, in furtherance of the scheme. As a result of the fraudulent loan applications, Blackmon received more than $319,000 in disaster relief funds.

Blackmon also admitted to obtaining more than $300,000 in loan preparation fees from customers who paid Blackmon to prepare and submit on their behalf PPP and EIDL loan applications that contained false information, to include false employment data, inflated business income and expenses, and false tax information. Based on the fraudulent information, Blackmon’s customers received more than $1.2 million in disaster relief funds. To avoid detection, Blackmon directed her customers to pay her fees in checks or peer-to-peer payments.

Blackmon was released on bond after her plea hearing. The wire fraud charge carries a maximum prison sentence of 20 years and a $250,000 fine. The maximum statutory penalty for the money laundering offense is 10 years in prison and a $250,000 fine. A sentencing date has not been set.

The FBI 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. – A federal indictment was unsealed in court today, following the arrest and initial appearance of Jakia McMorris, 32, of Charlotte, who is charged with conspiracy to commit bank fraud and money laundering conspiracy, 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), 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, from at least May 2021, McMorris was an employee of the U.S. Postal Service (USPS), working as a city carrier at the North Tryon Station in Charlotte. The indictment alleges that on or around September 13, 2021, McMorris reported that, while she was delivering mail, she lost a USPS universal key that could open many U.S. mailboxes. After that day, McMorris allegedly stopped reporting for work at the USPS.

According to allegations in the indictment, beginning in September 2021, McMorris and her co-conspirators executed a scheme to commit bank fraud by stealing more than $40,000 in checks, including from the U.S. mail. The indictment alleges that the co-conspirators used stolen universal USPS keys to open multi-unit outdoor mailboxes in Charlotte and steal mail. The stolen mail included business checks.

As part of the scheme, the indictment alleges that the co-conspirators deposited the stolen checks into bank accounts they controlled, including in bank accounts in McMorris’s name. It is alleged that the co-conspirators then quickly withdrew the cash from the accounts before the banks detected the fraud. McMorris allegedly received a portion of the funds as payment for using her bank accounts to perpetuate the scheme. As part of the conspiracy, the indictment also alleges that the co-conspirators attempted to disguise the payments made to the defendant by using the fraudulent proceeds in McMorris’s bank account to purchase money orders, which McMorris then deposited back into her bank accounts.

McMorris was released on bond following her initial appearance in federal court today. The bank fraud conspiracy charge carries a maximum penalty of 30 years in prison and a $1 million fine. The money laundering conspiracy charge carries a statutory penalty of 20 years in prison and a $500,00 fine.

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 for the investigation which led to the charges.

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

* * *

In a separate case, federal charges were filed against Douglas Gumbs, 38, of Charlotte, for mail theft and related charges. According to allegations in the indictment, from 2022 to April 2023, Gumbs engaged in a mail theft and bank fraud scheme by stealing large quantities of U.S. mail from residential and business mailboxes in Charlotte. The stolen mail included business and individual checks, credit cards, tax forms, and other financial information. In 2022, Gumbs allegedly was found with more than 850 individual pieces of stolen mail.

The indictment alleges that Gumbs deposited the stolen checks into bank accounts he controlled and withdrew the funds before the financial institutions learned that the deposited checks were stolen. The indictment further alleges that Gumbs engaged in identity theft by creating false identification documents in the names of individuals whose mail Gumbs’ had stolen. Gumbs then allegedly used the victims’ stolen identities in furtherance of the fraud, including to access the victims’ bank accounts and to open new bank accounts in some of the identity theft victims’ names.

Gumbs is currently in federal custody. He is charged with receipt and possession of stolen mail, theft of mail left for collection, destruction of letter boxes and bank fraud. The receipt and possession of stolen mail and theft of mail left for collection charges carry a maximum penalty of five years in prison and a $250,000 fine. The destruction of letter boxes charge carries a maximum penalty of three years in prison and a$250,000 fine. The bank fraud charge carries a maximum penalty of 30 years in prison and a $1 million fine.  

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

The FBI in Charlotte and the U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Gary Lee Davis, 56, of Charlotte, to 188 months in prison followed by 10 years of supervised release for trafficking fentanyl and cocaine, 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 Karen Wingerd, Acting Special Agent in Charge of IRS Criminal Investigation (IRS CI), Charlotte Field Office, join U.S. Attorney King in making today’s announcement.

According to filed court documents and court proceedings, in January 2021, Davis met a confidential source (CS) working with law enforcement and sold the CS 20 grams of fentanyl.  During a subsequent meeting, Davis sold a kilogram of fentanyl to the CS, and arranged to sell the CS another kilogram in the near future. A few days later, law enforcement arrested Davis while he was on his way to meet with the CS and seized approximately 1.5 kilograms of fentanyl from his vehicle.

According to court documents, Davis admitted to receiving fentanyl and cocaine shipped in bulk via the U.S. Mail from a supplier based in California. Davis mailed cash drug proceeds back to his supply source in California. Davis also admitted to trafficking between 50 and 100 kilograms of fentanyl.

According to court records, Davis laundered his drug proceeds by buying luxury vehicles and renting several stash houses in Charlotte, which he used to store his drugs and drug proceeds.  During the investigation, law enforcement seized a total of approximately 16 kilograms of fentanyl and four kilograms of cocaine. Law enforcement also seized six of Davis’s vehicles, including a Maybach and two Mercedes Benz vehicles, two Lexus vehicles, and a Chevrolet Corvette.  Law enforcement also seized $300,000 in cash drug proceeds and two loaded firearms. Davis has a prior federal drug trafficking conviction from the Western District of North Carolina, and he is not permitted to own a firearm or ammunition.

“By day, Davis was as a sanitation worker for the City of Charlotte. By night, he was a bulk trafficker of fentanyl, a deadly substance that is devastating our communities. I commend our law enforcement partners for conducting an investigation that led to the largest federal seizure of fentanyl in this District. We will continue to focus our efforts on identifying large drug networks and major distributors like Davis and disrupting the flow of illegal fentanyl and other dangerous drugs into our communities,” said U.S. Attorney King.

“Fentanyl is extremely dangerous to the consumer and leaves behind a trail of devastation and destruction,” said Special Agent in Charge Murphy. “The defendant in this case had total disregard for the safety of others.”

On August 12, 2021, Davis 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.

This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation.

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.

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

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

CHARLOTTE, N.C. – Steven Andiloro, 51, of Mooresville, N.C., is facing federal charges in connection with an alleged investment fraud scheme and for fraudulently obtaining more than $2.6 million in COVID-19 relief funds, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, and Hannibal “Mike” Ware, Inspector General of the Small Business Administration, Office of Inspector General (SBA-OIG), join U.S. Attorney King in making today’s announcement.

According to allegations in the indictment, from 2018 to 2021, Andiloro operated an investment fraud scheme in which he induced victims to invest their money in businesses that were both real and fictitious. To induce victim investors to invest their money, Andiloro allegedly made false and fraudulent representations about where and how the victims’ money would be invested. For example, the indictment alleges that Andiloro promised some of his victim investors their money would be invested in a non-existent marijuana dispensary business in exchange for a ten percent ownership stake. Instead of investing his victims’ money as promised, Andiloro used the funds to pay for personal expenses and to make Ponzi-style payments to other investors.

The indictment alleges that from April 2020 to March 2021, Andiloro fraudulently obtained funds from the Paycheck Protection Program (PPP) by submitting fraudulent applications for COVID-19 relief loans intended for businesses that suffered economic hardship due to the coronavirus pandemic. The indictment alleges that the fraudulent applications Andiloro submitted to obtain the PPP funds contained false financial information about his businesses, including fake employment data and inflated revenues, costs, and payroll expenses. As a result of the scheme, the indictment alleges that Andiloro received more than $2.6 million in fraudulently obtained relief funds, which he used to fund his personal lifestyle and to make payments in furtherance of the investment fraud scheme.

The indictment charges Andiloro with securities fraud and wire fraud, which carry a maximum prison sentence of 20 years and a $250,000 fine for each offense, and money laundering, which carries a maximum penalty of 10 years in prison.

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 the U.S. Secret Service, the FBI, and the SBA-OIG for the investigation which led to the charges.

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

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. – Andrea Brawley, 45, of Conover, N.C., is facing federal charges for stealing more than $300,000 from two elderly relatives, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. A federal grand jury in Charlotte returned a criminal indictment this week, charging Brawley with mail fraud and aggravated identity theft.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina and Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office join U.S. Attorney King in making today’s announcement.

According to allegations in the indictment, from August 2016 to January 2023, Brawley engaged in a scheme to defraud the elderly couple identified in court documents as J.S. and M.S., by exploiting her relationship with the victims to steal their money and property. The indictment alleges that Brawley gained access to the victims’ personal and company bank accounts, which she was expected to use to manage the couple’s personal and business affairs and to pay routine bills. Instead, Brawley allegedly misused her access to transfer funds to herself, causing the victims to sustain significant financial losses. For example, Brawley allegedly failed to make payments due on the victims’ home equity line of credit on their residence. As a result, the victims’ residence went into foreclosure and the couple lost their home. Brawley also allegedly drained the victims’ retirement accounts by forging retirement distribution forms without the victims’ knowledge and consent, causing them further financial hardship. Over the course of the scheme, Brawley allegedly defrauded J.S. and M.S. and M.S.’s company of more than $300,000.

As alleged in the indictment, Brawley concealed the fraudulent scheme from J.S. and M.S. by making false representations about the cause of the foreclosure and about the state of J.S. and M.S.’s finances and personal affairs. The indictment alleges that Brawley also isolated J.S. and M.S. and limited their contact with their friends and family by taking the victims’ cell phones, impersonating them in communications with third parties, transporting them to various locations around the state, and preventing them from returning to their residence. The indictment further alleges that, in furtherance of the scheme, Brawley engaged in identity theft by using and attempting to use one or more means of identification that belonged to J.S. and M.S., including their names, addresses, and unique account numbers.

“Elder financial abuse continues to rise at an alarming rate. Unfortunately, when older adults are victims of financial exploitation it is incredibly difficult for them to recover financially and recoup their losses. And when the fraud is perpetrated by a trusted friend or close family member, the added emotional devastation can be overwhelming,” said U.S. Attorney King. “My Office’s elder financial exploitation cases receive the priority they deserve, and we are committed to doing all we can to combat elder financial abuse and ensure that older adults are supported and protected from fraud.”

“When you stop and consider the true impact of elder financial fraud, it is devastating. People should not work 40 years or longer only to have their life savings swindled away,” said Special Agent in Charge DeWitt. “The FBI will work tirelessly to protect the elderly and help educate them and those who love them, how not to fall victim to fraud.”

“My office is striving to combat the victimization of our older adults,” said Sheriff Brown. “Elder financial abuse often has a lasting and debilitating effect, especially when a close trust or confidence is violated. We will continue working with our local, state and federal partners to seek justice for these victims.”

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 mail fraud offense carries a maximum penalty of 20 years in prison. The aggravated identity theft charge carries a maximum sentence of two years in prison, consecutive to any other term of incarceration imposed.

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

Assistant U.S. Attorney Graham Billings with the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.   

CHARLOTTE, N.C.  – This week, U.S. Attorney Dena J. King participated in the National Recognition Week for the winners of the “Do the Write Thing” essay challenge in Washington, D.C., organized by the National Campaign to Stop Violence.

The Do the Write Thing (DtWT) challenge is a program of the National Campaign to Stop Violence, which seeks to encourage middle school students to express the impact of violence in their lives through writing, and to empower students to become catalysts for positive change by sharing their ideas on ways to reduce youth violence. 

U.S. Attorney King serves as Chair of the DtWT Committee in Asheville. In May, U.S. Attorney King announced the two winners of the essay competition in Asheville, Ace Wilkins from Asheville Middle School, and Hannah-Grace Tweedie from Cane Creek Middle School. U.S. Attorney King also attended the DtWT ceremony in Charlotte, where Aaliyah Williams-Camp from Eastway Middle School, and Michael Tadi from Coulwood STEM Academy were announced as the winners of the essay competition in Charlotte.

As overall winners of the essay challenge, the four students were designated as DtWT Student National Ambassadors. As Ambassadors, the students, their parents/guardians and the teachers who submitted their essays were invited to the National Recognition Week, that took place from July 15 to July 19, in the nation’s capital. While there, the Ambassadors participated in a number of events, including a visit to the U.S. Supreme Court, and a meeting with members of Congress at the U.S. Capitol, where the students had an opportunity to discuss a number of topics including the problem of youth violence. In addition, the students were honored at an embassy reception hosted by the Ambassador from the State of Kuwait to the United States. A highlight of the week was a visit to the Library of Congress where the National Ambassadors’ essays can be viewed by the public.

“I am very proud of our Asheville and Charlotte National Ambassadors for this great accomplishment. I am confident that this experience has fueled their drive to achieve their goals and strive to reach their full potential,” said U.S. Attorney King. “Words have incredible power and can make ideas, hopes, and dreams become a reality. Do the Write Thing is a unique opportunity, as it allows young people to express their experiences through their writings, communicate their insights about the impact of violence in their lives, and learn how they can become agents of change.”

For more information on the National “Do the Write Thing Challenge” program please visit http://www.dtwt.org.

CHARLOTTE, N.C. – Jennifer Elaine Roarke, 54, of Hickory, N.C., was indicted on wire fraud charges for embezzling more than $1.5 million from the clients of a law firm where she was employed, 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 in North Carolina joins U.S. Attorney King in making today’s announcement.

According to allegations in the indictment, from 2007 to 2021, Roarke, who is also known as Jennifer Claveria, was employed as an assistant and a paralegal for a law firm in Hickory, North Carolina. The law firm handled, among other things, the administration and management of trusts for clients, including the trusts’ bank accounts. As part of her duties, Roarke was responsible for opening mail, depositing checks into trust bank accounts, and processing invoices. As alleged in the indictment, from 2015 to 2021, Roarke misused her access and position with the law firm to embezzle more than $1.5 million from the trusts of the law firm’s clients. Roarke executed the embezzlement scheme by making hundreds of unauthorized wire transfers from bank accounts associated with the law firm’s clients’ trusts into bank accounts controlled by Roarke. Roarke allegedly used the embezzled funds to pay for personal items, make mortgage, car, and credit card payments, and to fund an extravagant lifestyle.

The information and 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 prison sentence of 20 years and a $250,000 fine.

In making today’s announcement, U.S. Attorney King credited the FBI for the investigation which led to the charges.

Assistant U.S. Attorney Cassye Cole with the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.

CHARLOTTE, N.C. – Jermaine Whitaker, 44, of Charlotte, was sentenced today to 92 months in prison followed by three years of supervised release for illegal possession of a firearm, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Bennie Mims, 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 documents and today’s court proceedings, in 2015, Whitaker was convicted of drug and firearm offenses in the Western District of North Carolina and was ordered to serve 84 months in prison followed by a term of supervised release. In June 2021, CMPD officers executed an arrest warrant for the defendant for violating the terms of his supervised release. While executing the arrest warrant at a residence in Charlotte, CMPD officers located a loaded firearm and ammunition. Law enforcement determined that the firearm belonged to Whitaker and was reported stolen. Court records show that Whitaker paid $80 to purchase the firearm.

In announcing today’s sentence U.S. Attorney King said, “Whitaker violated federal gun laws that prohibit convicted felons from possessing firearms. He further broke the law by obtaining a stolen gun from an illegal source. We will continue to work with our law enforcement partners to remove illegal firearms from our communities and hold illegal gun possessors accountable for their actions,” said U.S. Attorney King.

“Possession of a firearm by a felon is illegal and jeopardizes the safety of the community,” said Special Agent in Charge Mims. “Recovering stolen firearms and keeping guns out of the hands of prohibited individuals plays an important role in reducing violent crime and better protecting our neighborhoods.”

On June 24, 2022, Whitaker pleaded guilty to possession of firearm by a convicted felon. 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 and CMPD for their investigation of the case.

Assistant United States Attorney Christopher Hess, of the U.S. Attorney’s Office in Asheville, 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. – A federal grand jury in Charlotte has returned a criminal indictment charging Glynn Paul Hubbard, Jr., 45, of Charlotte, with wire fraud and money laundering, for allegedly obtaining more than $1.2 million in fraudulent Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan (EIDL) Program loans for himself and his customers, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Karen Wingerd, Acting Special Agent in Charge of IRS Criminal Investigation (IRS CI), Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.

According to allegations in the indictment, from March 31, 2020, to August 1, 2020, Hubbard, Jr. submitted fraudulent PPP loan and EIDL applications to the U.S. Small Business Administration (SBA) and SBA-approved lenders, seeking to obtain relief funds for his businesses, Borrow My Ride, Balanced Society Corporation, The Regins Corporation, and GGGAB, Inc. To obtain the relief funds, the indictment alleges that Hubbard, Jr. falsified information in loan applications and supporting documentation, and provided false financial information, fake employment data, and fraudulent tax returns for his businesses. As a result of the scheme, the indictment alleges that Hubbard, Jr. received more than $570,000 in fraudulently obtained relief funds. 

The indictment further alleges that Hubbard, Jr. also executed the scheme by submitting false and fraudulent applications for PPP and EIDL funds on behalf of customers, causing more than $660,000 in relief funds to be disbursed to his customers. Hubbard, Jr. allegedly promoted the fraudulent scheme through personal referrals and in social media posts where he advertised that he was a PPP loan/EIDL consultant. Over the course of the scheme, Hubbard, Jr. allegedly received improper loan preparer fees for his services totaling more than $150,000, and, to avoid detection, he allegedly required customers to pay the loan preparation fees in cash, via cashier’s checks, or wire transfers.

“Safeguarding taxpayer dollars and protecting disaster relief programs from fraud is a priority for my office,” said U.S. Attorney King. “Federal prosecutors are working side-by-side with investigators dedicated to identifying pandemic-related schemes and holding accountable individuals who sought to exploit COVID-19 economic relief programs put in place to help small businesses in a time of grave need.”

“During the pandemic, the defendant allegedly took advantage of a program intended to provide critical relief for businesses impacted by the COVID-19 outbreak,” said Acting Special Agent in Charge Wingerd. “IRS Cl is committed to bringing to justice to those who have exploited the pandemic for personal gain and have stolen from America’s taxpayers.”

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 prison sentence of 20 years and a $250,000 fine. The maximum statutory penalty for the money laundering offense is 10 years in prison and a $2500,000 fine.

In making today’s announcement, U.S. Attorney King credited IRS CI for the investigation which led to the charges.

Assistant U.S. Attorneys Caryn Finley and Cassye Cole with the U.S. Attorney’s Office in Charlotte 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 Max O. Cogburn, Jr. sentenced Allen Shunte Plowden, 38, of Charlotte, to 151 months in prison followed by six years of supervised release for cocaine distribution and illegal firearm possession, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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 (CMPD) join U.S. Attorney King in making today’s announcement.

According to filed documents and court proceedings, in May 2020, law enforcement initiated an investigation into Plowden, after receiving information that the defendant was distributing narcotics in the Charlotte area. On September 27, 2020, law enforcement executed a search warrant at Plowden’s residence, seizing cocaine, drug paraphernalia, digital scales, and other items consistent with drug distribution. Law enforcement also seized $40,000 in drug proceeds and 16 illegal firearms, some of which had been reported stolen.

On October 25, 2021, Plowden pleaded guilty to possession with intent to distribute cocaine and possession of a firearm by a convicted felon. At today’s court hearing, Plowden’s sentence was enhanced due to his classification as a “Career Offender” based on multiple prior convictions, including Robbery and Distribution/Manufacture of Cocaine Base and Distribution of a Controlled Substance Near a School.

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

Assistant United States Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville 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. – Jayton Gill, 35, of Durham, N.C., was sentenced to 21 months in prison followed by a year of supervised release today for operating an unlicensed money transmitting business and willful failure to file a tax return, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Gill was also ordered to pay a forfeiture money judgement in the amount of $475,000.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, and Karen Wingerd, Acting Special Agent in Charge of IRS Criminal Investigation (IRS CI), Charlotte Field Office, join U.S. Attorney King in making today’s announcement.

According to filed court documents and court proceedings, from 2015 to 2021, Gill operated an unlicensed money transmitting business involving the exchange of millions of dollars of cash and other monetary instruments for cryptocurrencies such as Bitcoin and Monero. During the relevant time, Gill conducted thousands of transactions involving thousands of Bitcoins. As Gill previously admitted in court, he advertised his unlicensed money transmitting business on various public websites and made claims on one such website that he had conducted more than 4,200 transactions with 2,700 different parties. Gill also conducted unlicensed money transactions in person and via the U.S. Postal Service.

Court records show that Gill also failed to file U.S. Individual Income Tax Returns for tax years 2015 through 2019, despite earning significant income from his unlicensed money transmitting business and from investing in cryptocurrency.

On July 12, 2022, Gill pleaded guilty to operating an unlicensed money transmitting business and failure to file a tax return. He will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.

The FBI and IRS CI handled the investigation. Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – A Charlotte tax preparer was sentenced to 20 months in prison today for preparing and filing false tax returns, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Jessica Earlene Truesdale, 49, of Charlotte, was also ordered to serve one year of supervised release after completing her prison term and to pay $1,177,615 in restitution. 

Karen Wingerd, Acting Special Agent in Charge of IRS Criminal Investigation (IRS CI), Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.

According to court documents and statements made in court, Truesdale owned and operated Queen City Financial Company, LLC (Queen City Financial), a tax preparation business with three locations in the Charlotte area. Between 2014 and 2017, Truesdale prepared and filed fraudulent tax returns on behalf of her clients and earned at least $1 million in return preparation fees, which were paid directly from her clients’ refunds. Court documents show that Truesdale used several methods to falsify clients’ tax returns, including claiming false filing status and exemptions, American Opportunity credits, education credits, and earned income tax credits, among others. As a result of the false information contained in the fraudulent returns, Truesdale’s clients reduced their tax liabilities and received fraudulently inflated tax refunds. To further conceal the fraud, Truesdale regularly failed to review the completed tax returns with clients, except to inform them the amounts of their refunds. As a result, some clients received correspondence from the IRS or the State of North Carolina questioning items on their tax returns.

On February 17, 2022, Truesdale pleaded guilty to aiding and abetting in the preparation of a false tax return. Truesdale will be ordered to report the federal Bureau of Prisons upon designation of a federal facility.

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

Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Herbert Eugene Brandon, 55, of Charlotte, to 292 months in prison for drug trafficking conspiracy, drug distribution and money laundering conspiracy, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Judge Cogburn also imposed five years of supervised release following incarceration.

According to filed documents and information introduced at the sentencing hearing, in 2019, law enforcement identified Brandon as a member of a Drug Trafficking Organization (DTO) associated with the CJNG Mexican drug cartel and responsible for distributing bulk quantities of methamphetamine and heroin throughout Western North Carolina, including in Mecklenburg and Gaston Counties. Over the course of the investigation, law enforcement conducted surveillance and controlled drug buys, during which they observed Brandon engage in several drug transactions with a Confidential Informant and with other local drug dealers. In addition to trafficking narcotics, Brandon engaged in money laundering activity, by sending drug proceeds via wire transfers to Mexico-based DTO members in amounts varying from $980 to $1,500 per transaction.

In October 2021, Brandon pleaded guilty to drug trafficking conspiracy and money laundering conspiracy, and distribution and possession with intent to distribute heroin and methamphetamine.

This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation.

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.

In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, Homeland Security Investigations, and the Gaston County Police Department for their coordination and investigation of the case.

Assistant United States Attorney Regina Pack, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced Franklin Earl Lawrence, Jr., 50, of Gastonia, N.C., to 141 months in prison followed by three years of supervised release for bank robbery and firearms offenses, 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 in North Carolina, and Chief Trent Conrad of the Gastonia Police Department join U.S. Attorney King in making today’s announcement.

According to court documents and today’s sentencing hearing, on August 19, 2021, Lawrence robbed at gunpoint the Truist bank branch located at 3070 Union Road in Gastonia. Court records show that Lawrence entered the bank wearing a hat, wig, and glasses, approached a teller, pointed his loaded firearm at the teller and demanded money. After the teller complied, Lawrence turned to a second teller, pointed his firearm at her and demanded more money. The teller handed her cash over to Lawrence and the defendant fled the scene. Officers with the Gastonia Police Department tracked Lawrence at a nearby field. When the officers approached Lawrence, the defendant threw his firearm at the direction of one of the officers before he was arrested. At the time of the arrest, officers recovered from Lawrence’s fanny pack the shirt, hat, wig and glasses Lawrence wore during the robbery, as well as a loaded pistol and the money the defendant stole from the bank.

On February 24, 2022, Lawrence pleaded guilty to bank robbery and brandishing a firearm during, and in relation to, and in furtherance of a crime of violence. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

The FBI and the Gastonia Police Department investigated the case. Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville 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. In 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. – This week, 22 high school students attended the U.S. Attorney’s Office Summer Law Camp, for an introduction to the American Criminal Justice System and to learn more about what it takes to pursue a career in the law. The three-day program wrapped up on Wednesday, July 12, 2023, with the students participating in mock trials at the federal courthouse in Charlotte. U.S. District Judge Robert J. Conrad Jr. presided over the mock trials.

“Our Summer Law Camp is a great way to introduce young people to our criminal justice system and the diverse career paths available to them within the legal field,” said U.S. Attorney King. “The mock trials also give students an opportunity to better understand legal proceedings and trial advocacy, and experience first-hand what it’s like to be a lawyer in an interesting, fun, and interactive format.”

The U.S. Attorney’s Office Summer Law Camp is free of charge, and it is available to students in 9th through 12th grades who are interested in learning more about the legal profession. The program is taught by career federal prosecutors and it is designed to help students explore the justice system, learn about the Federal Rules of Evidence, gain basic advocacy skills, and encourage students to think as lawyers. In addition, participating students receive instruction on evidence collection, and have an opportunity to hear from guest speakers representing law enforcement agencies and the defense bar. During the mock trials, students actively participate in the court proceedings, with assigned roles as prosecutors, defense attorneys, and witnesses, tasked with delivering opening and closing statements, providing testimony, and conducting cross examinations.

“Our law camp provides students of all socio-economic backgrounds with an opportunity to be exposed to the legal profession, understand the legal process, and learn more about career options in the legal field,” said U.S. Attorney King. “But ultimately, the law camp is more than a lesson in civics or career preparation. The goal is to help young people gain a greater understanding of the power and responsibility they hold as citizens and the important role they play in ensuring that the criminal justice system is a place where they can make a difference for themselves, for their community, and, ultimately, for justice,” King added.

Additional information about the U.S. Attorney’s Office Summer Law Camp can be found here.

 

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Jeremy David Greene, 47, of Lenoir, N.C., was ordered to serve 15 years in prison followed by five years of supervised release for possession of a firearm by a felon and possession with intent to distribute methamphetamine.

Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Sheriff Alan C. Jones, of the Caldwell County Sheriff’s Office, join U.S. Attorney King in making today’s announcement.

According to information in court documents and today’s sentencing hearing, , in April 2022, law enforcement received information that Greene was selling large amounts of methamphetamine in Caldwell County. Greene also had outstanding arrest warrants for state law violations. On April 14, 2023, law enforcement located Greene driving his vehicle in Lenoir. Court records show that law enforcement officers attempted to conduct a traffic stop of Greene’s vehicle, but Greene ignored law enforcement and sped away. Law enforcement deployed stop sticks, successfully stopping Greene’s vehicle, and Greene was arrested shortly thereafter.  

According to court records, law enforcement searched Greene’s vehicle and seized more than 500 grams of methamphetamine, a 9mm pistol, 36 rounds of ammunition, and over $11,900 in cash. Greene has prior felony convictions, including Assault with a Deadly Weapon on Law Enforcement, and he is prohibited from possessing a firearm or ammunition.

Greene is currently 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 commended the ATF and the Caldwell County Sheriff’s Office for their investigation of the case and thanked the Caldwell County District Attorney’s Office for their invaluable assistance and coordination.

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 office of the 26th Prosecutorial District and the United States Attorney’s Office. 

 

CHARLOTTE, N.C. – Nike Apollo Perry, 30, of Mount Holly, N.C., was sentenced to 84 months in prison today for possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Terry Burgin, United States Marshal of the United States Marshals Service for the Western District of North Carolina, and Jamaal Thompson, Chief Inspector of the United States Marshals Service, Carolinas Regional Fugitive Task Force, join U.S. Attorney King in making today’s announcement.

According to filed court documents and today’s sentencing hearing, on May 17, 2022, the Carolinas Regional Fugitive Task Force (CRFTF) coordinated the arrest of Perry, who had outstanding arrest warrants for a federal supervised release violation and four felony state law violations. CRFTF members located Perry in Charlotte, and with the assistance of the Charlotte-Mecklenburg Police Department (CMPD) Aviation Unit conducted surveillance of Perry’s vehicle. Over the course of the surveillance, court records show that law enforcement observed Perry park his vehicle at an apartment complex in Charlotte. CRFTF members approached Perry and ordered him to step out of the vehicle. Perry was arrested at the scene without incident. At the time of the arrest, Perry was wearing a bulletproof vest.

According to court records, CRFTF members conducted a search of Perry’s vehicle and located a loaded semi-automatic pistol with a round loaded in the chamber and an attached 40-round magazine. Perry has a prior federal conviction for illegal gun possession and state convictions for second-degree murder and assault inflicting seriously bodily injury. As a result of those convictions, Perry is prohibited from possessing firearms or ammunition.

Perry is currently in federal custody. He will be returned to state custody to serve the remainder of his felony assault sentence and then be transferred to the custody of the federal Bureau of Prisons.

In making today’s announcement, U.S. Attorney King thanked the United States Marshals Service and the Carolinas Regional Fugitive Task Force for their investigation of the case and CMPD for their assistance with Perry’s arrest.

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

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that the U.S. Attorney’s Office for the Western District of North Carolina hosted a Bank Secrecy Act & Anti-Money Laundering conference in Charlotte. Representatives from the banking sector and the financial services industry attended the one-day conference, which was held at the Charlotte Police & Fire Training Academy.

The Currency and Foreign Transactions Reporting Act of 1970, commonly known as the Bank Secrecy Act (BSA), established the framework to increase financial transparency and prevent the misuse of the U.S. financial system for the purpose of money laundering. The BSA requires financial institutions to establish certain recordkeeping requirements and anti-money laundering programs, perform customer due diligence, and report suspicious activity. The purpose of the BSA is to safeguard the integrity of the U.S. financial system and to deter and detect those who engage in financial criminal activity, terrorist financing and other illicit financial transactions.

The BSA conference highlighted a broad range of topics related to the role of financial institutions in monitoring, investigating, and reporting illicit financial activity, and provided attendees with important information about emerging areas of fraud in the financial crime landscape, including COVID-19 fraud, cryptocurrency and crypto crime threats, elder financial exploitation, cybercriminal groups, and transnational drug trafficking.

“Money laundering is not a Charlotte problem. It is not a North Carolina problem. It is a global problem that can undermine the stability of our financial markets,” said U.S. Attorney King. “Today’s conference provides an important overview of the latest trends in financial criminal activity and underscores the important role financial institutions play in bolstering our anti-money laundering efforts and disrupting the illicit movement of money through our financial system.”

U.S. Attorney King also noted that information obtained as part of the financial institutions’ BSA requirements can assist investigators and prosecutors in detecting and disrupting money laundering and other financial crimes, developing new investigations, providing leads for existing cases, and locating hidden assets that can be used to pay restitution to crime victims.

“The Bank Secrecy Act is an important tool in our efforts to fight money laundering, bring to justice those who seek to misuse the U.S. financial system to move criminal proceeds, and protect Americans from financial harm,” said U.S. Attorney King. “Rooting out financial criminal activity doesn’t solely rest in the hands of prosecutors and regulators. Financial institutions need to continue to do their part to protect the U.S. financial system from those who misuse it to engage in illicit financial activities.”

STATESVILLE, N.C. – A federal jury convicted Jessie Leroy Glass, Jr., 49, of Statesville, for possession and receipt of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell presided over the two-day trial which ended late yesterday.

Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Sheriff Darren Campbell of the Iredell County Sheriff’s Office join U.S. Attorney King in making today’s announcement.

According to trial evidence, witness testimony and filed court documents, between January and February 2020, Glass received and possessed images and videos of child pornography. As trial evidence established, the Iredell County Sheriff’s Office initiated an investigation into Glass after an individual alerted law enforcement about Glass’s possession of child pornography. Over the course of the investigation, law enforcement recovered two cell phones associated with Glass. A forensic analysis of the cell phone devices revealed that they contained images and videos depicting the sexual abuse of children, including infants and toddlers.

The jury convicted Glass of three counts of receipt of child pornography and one count of possession of child pornography. Glass was released on bond. A sentencing date has not been set.

The charge of possession of child pornography carries a statutory penalty of up to 20 years in prison. Each count of receipt of child pornography carries a minimum sentence of five years in prison and a maximum sentence of 20 years in prison.

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

Assistant United States Attorneys Kimlani Ford and Stephanie Spaugh of the U.S. Attorney’s Office in Charlotte are prosecuting 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. – A federal grand jury has returned a criminal indictment charging a Charlotte woman for operating a fraudulent document scheme which she advertised on Facebook, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The indictment charges Chaiya Maley-Jackson, 23, with eight counts of unlawful production of false identification documents, eight counts of unlawful transfer of false identification documents, one count of wire fraud, and one count of making false statements to 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.

According to allegations contained in the indictment, as early as January 2020, Maley-Jackson was the owner and operator of Diva Documents/CPN Services (Diva Documents). The indictment alleges that Diva Documents advertised the sale of false and fraudulent documents on Facebook as well as two websites, divadocuments.com and divadocuments.onuniverse.com. As alleged in the indictment, Maley-Jackson used her personal Facebook page under the name Yaya Flowers to advertise a pricelist for the fake documents she produced, which 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 indictment alleges that the price for the fake documents ranged from $15 to edit a paystub to $150 for a hard copy of a driver’s license, and that Maley-Jackson required customers to pay half of the payment upfront and the balance upon completion of the fabricated documents.

According to allegations in the indictment, Maley-Jackson communicated with clients via emails and text messages and provided the fraudulent documents to customers via email and mail. As alleged in the indictment, 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 other things. According to the indictment, between January 2020 and August 2022, Maley-Jackson created at least 400 Social Security Cards, eight driver’s licenses, and six COVID-19 vaccine cards, and earned more than $320,000 in fees from producing, selling and transferring false documents.

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 charge of unlawful production of false identification documents carries a maximum penalty of fifteen years in prison per count. The charge of unlawful transfer of false identification documents carries a maximum penalty of five years in prison per count. The maximum penalty for the wire fraud charge is 20 years in prison, and the maximum penalty for making a false statement to a financial institution is 30 years in prison.

In making today’s announcement, U.S. Attorney King credited the FBI in Charlotte for the investigation which led to the charges. 

Assistant U.S. Attorney Caryn Finley with the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.

ASHEVILLE, N.C. – A criminal indictment has been unsealed in federal court in Asheville, charging four individuals with allegedly executing a multi-million dollar bank fraud scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The indictment charges Kotto Yaphet Paul, 48, of Waxhaw, N.C., Latoya Tamieka Ford, 48, of Covington, Georgia, Bruce Howard Marko, 64, of Charlotte, N.C., and Love Norman, 49, of West Palm Beach, Florida, with one count of wire fraud and bank fraud conspiracy, 16 counts of financial institution fraud, and four counts of money laundering.

According to allegations contained in the indictment, from 2016 to May 2021, the defendants and their co-conspirators executed a fraudulent loan scheme that defrauded at least 17 federally insured financial institutions of more than $17 million. As alleged in the indictment, the defendants and their co-conspirators obtained loans from the financial institutions by submitting loan applications that contained fraudulent information, including false employment and income information, false tax returns, and misrepresentations regarding the applicants’ assets, liabilities, and the intended use the loan proceeds. The indictment further alleges that, based on the fraudulent loan applications, the defendants secured at least 42 loans from the victim financial institutions. Contrary to information provided on the loan applications about the purpose of the loans, the defendants allegedly used the loan proceeds to purchase real estate, cover unrelated business expenses, make investments, and pay for personal expenditures. The indictment also alleges that the defendants defaulted on most of the loans, causing substantial losses to the victim financial institutions that issued the loans.

Each defendant charged in the indictment has appeared in court on the charges. The bank fraud and wire fraud conspiracy charge carries a maximum penalty of 30 years in prison. The charge of financial institution fraud carries a prison term of up to 30 years per count, and the money laundering offense has a statutory maximum penalty of up to 10 years in prison for each offense.

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.

Four additional defendants have been convicted of bank fraud conspiracy for their involvement in the scheme. Amrish D. Patel, 45, of Stockbridge, Georgia, was sentenced to 15 months in prison. Dwight A. Peebles, Jr., 47, of Chapel Hill, N.C., was sentenced to 18 months in prison. Denise Woodard, 56, of Roswell, Georgia, was ordered to serve 36 months in prison, and Derrick L. Harrison, 54, of Greenville, S.C., was sentenced to a year and a day in prison. The defendants were also ordered to pay restitution ranging from $620,000 to more than $3.1 million.

In making today’s announcement, U.S. Attorney King credited the Office of the Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, the Office of the Inspector General for the Federal Housing Finance Agency, the Office of the Inspector General for the Federal Deposit Insurance Corporation, the Federal Bureau of Investigation in Charlotte, and the Charlotte Field Office of the Internal Revenue Service’s Criminal Investigation Division, for the investigation of this case. 

Assistant U.S. Attorney Don Gast with the U.S. Attorney’s Office in Asheville is in charge of the prosecution.

If you have information related to this investigation, please contact the FBI at 704-672-6666

 

 

ASHEVILLE, N.C. – Jacob Ryan McClure, 25, of Waynesville, N.C. was sentenced to 33 months in prison today followed by three years of supervised released for possession of machineguns, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Sheriff William Wilke of the Haywood County Sheriff’s Office join U.S. Attorney King in making today’s announcement.

According to documents filed with the court and today’s sentencing proceedings, on July 6, 2022, deputies with the Haywood County Sheriff’s Office stopped McClure’s vehicle for a traffic violation. Over the course of the traffic stop, law enforcement found in McClure’s vehicle 97 illegal conversion devices, commonly known as “Glock switches,” which are used to convert firearms into machineguns. Law enforcement also seized four P80 pistols, which are privately manufactured firearms referred to as “Ghost guns,” that had been converted into machineguns with illegal Glock switches. Law enforcement also recovered a conventional Glock firearm that also had a Glock switch installed, an unregistered short-barreled 9mm rifle, 10 unregistered firearm silencers, and $3,000 in cash. 

According to court records, prior to the incident in Haywood County, in August 2021, McClure was arrested in Tennessee after law enforcement seized from McClure’s vehicle and rental cabin several firearms, including converted machineguns, an unregistered silencer, narcotics, and over $10,000 in cash. The U.S. Attorney’s Office in the Middle District of Tennessee brought federal charges against McClure in connection with this offense. Those charges were later transferred to the U.S. District Court in the Western District of North Carolina.

On March 3, 2023, McClure pleaded guilty to two counts of possession of machineguns in connection with both federal cases. McClure remains in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

U.S. Attorney King thanked the ATF, the Haywood County Sheriff’s Office, and the Dover, Tennessee, Police Department for conducting investigations which led to today’s sentence.

The U.S. Attorney’s Office in Asheville handled the prosecution. U.S. Attorney King also thanked the U.S. Attorney’s Office for the Middle District of Tennessee for their coordination and assistance.

CHARLOTTE, N.C. – In observance of World Elder Abuse Awareness Day (WEAAD), U.S. Attorney Dena J. King joined the Justice Department and communities around the world today to condemn elder abuse, neglect, and financial exploitation, and vowed to continue to investigate and prosecute bad actors who seek to exploit and harm older adults.

First recognized on June 15, 2006, by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations, WEAAD aims to promote a better understanding of the abuse and neglect experienced by millions of older adults – crimes that are too often overlooked or unreported. Through this observance, WEAAD brings focus to the cultural, social, economic, and demographic circumstances affecting elder abuse and neglect.

“Today, we reaffirm our commitment to end elder abuse and to continue to work tirelessly to advocate for older adults and advance the cause of elder justice. On this day and every day, it is important to shine a light on elder abuse, neglect, and exploitation and bring to justice individuals who victimize older adults and rob them of the safety, dignity, and respect they deserve.”

Dena J. King, United States Attorney

The U.S. Attorney’s Office for the Western District of North Carolina seeks to actively prevent elder abuse and financial exploitation from occurring in the first place. As part of its efforts to prevent elder financial fraud, the Office continues to engage in outreach with the community to educate older adults, their families, and caretakers about scams targeting the elderly, and provide educational material and resources on how to recognize and report elder abuse and financial exploitation and prevent victimization from happening.

Today, the U.S. Attorney’s Office organized a “Walk for Awareness” at Freedom Park in Charlotte, to promote WEAAD and raise public awareness of the fight against elder abuse, neglect, and financial exploitation. U.S. Attorney’s Office personnel, law enforcement partners, AARP volunteers, and members of the community participated in the walk in support of efforts to advance elder justice.

“As prosecutors our job is to bring to justice those who inflict harm on our older population. Equally important is our work in the community and our efforts to actively organize and promote public awareness events centered on the prevention of elder abuse and exploitation, so we can stop older adults from being victimized in the first place,” said U.S. Attorney King.

To report elder fraud, contact the dedicated National Elder Fraud Hotline at 1-833-FRAUD-11 or 1-833-372-8311 and visit the FBI’s IC3 Elder Fraud Complaint Center at IC3.gov. To learn more about the Office’s elder justice efforts please visit our website.

ASHEVILLE, N.C. – Stephen William Wargo, 30, formerly of Dallas, Georgia, was sentenced today to 30 years in prison followed by a lifetime of supervised release for traveling to Western North Carolina in order 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 Wargo to register as a sex offender after he is released from prison and to pay restitution in the amount of $13,200.

Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, 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 proceedings, in September 2021, Wargo began communicating with a 10-year-old minor female via the Discord social media messaging application. Wargo had extensive conversations with the minor victim and at times made inappropriate romantic overtures. Court records show that the minor victim’s parent discovered the communications and turned over the minor’s cell phone to the Henderson County Sheriff’s Office. A detective took over the minor victim’s Discord account and continued to communicate with Wargo. During this period, the messages from Wargo became increasingly sexual and the two discussed Wargo traveling from Georgia to North Carolina to meet the minor victim. On October 16, 2021, Wargo did in fact travel from Georgia to Henderson County, with the intent to engage in a sexual act with a child. He was arrested upon arriving at the predetermined meeting location.

On February 27, 2023, Wargo pleaded guilty to crossing state lines with intent to engage in a sexual act with a person less than 12 years of age.

"Every child has the right to a childhood free from sexual abuse and trauma. Identifying and prosecuting predators like Wargo is at the forefront of our efforts to combat child sexual exploitation and keep our most precious resource, our children, safe from those who wish to cause them harm,” said U.S. Attorney King.

“Protecting the children in our communities remains a top priority for Homeland Security Investigations,” said Special Agent in Charge Martinez. “This sentence is a testament that HSI remains committed to identifying individuals who prey on our most vulnerable population.”

“There is nothing more precious than our children. I am proud of the extraordinary efforts put forth by the men and women of the Sheriff’s office, Homeland Security Investigations, and the U.S. Attorney’s Office to remove this dangerous criminal from society. We will continue to work collaboratively to hold those accountable that choose to prey on the most vulnerable,” said Sheriff Griffin.

U.S. Attorney King credited HSI and the Henderson County Sheriff’s Office 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.

ASHEVILLE, N.C. – A bookkeeper was sentenced to prison today for embezzling more than $1.35 from his employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger ordered Danny Dale Tremble, 49, of Conover, N.C., to serve 41 months in prison followed by three of supervised release, and to pay restitution in the amount of $1,639,659.99.

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

According to court documents and court proceedings, from October 2013 to December 2021, Tremble executed a scheme to embezzle and defraud his Asheville-based employer, Azalea Management and Leasing, Inc. (Azalea). Tremble worked at Azalea as an accountant, and in that capacity had access to the company’s bank accounts and accounting records. Over the course of the scheme, Tremble routinely misused his access to Azalea’s bank accounts to embezzle company funds, which he used to pay off personal credit cards and to cover personal expenditures including lavish hotel stays, dining, and shopping. Tremble also used stolen company funds to purchase a camper, a boat, a trailer, a pickup truck, and to buy multiple firearms.  

Court documents show that Tremble failed to report any of the embezzled income on his Joint Individual Income Tax Returns, Forms 1040, amounting to a federal tax loss of $288,716.

On February 13, 2023, Tremble pleaded guilty to wire fraud and filing a false tax return. He is currently released on bond and will be ordered to surrender to the federal Bureau of Prisons upon designation of a federal facility.

U.S. Attorney King thanked the FBI and IRS-CI for their investigation of the case. The U.S. Attorney’s Office in Asheville handled the prosecution.

CHARLOTTE, N.C. – Aljihad Shabazz, 44, of Kernersville, N.C., appeared before U.S. Magistrate Judge Susan C. Rodriquez today and pleaded guilty to health care fraud conspiracy and money laundering conspiracy for his role in a scheme that defrauded the North Carolina Medicaid Program (Medicaid) of more than $4.7 million, 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, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), and North Carolina Attorney General Josh Stein, who oversees the North Carolina Medicaid Division (MID), join U.S. Attorney King in making today’s announcement.

According to court records, filed plea documents, and today’s hearing, Shabazz was the owner and operator of Reign & Inspirations, LLC (R&I), a clinic that provided outpatient behavioral services in Greensboro and surrounding areas. Between 2017 and 2020, Shabazz conspired with other individuals to carry out an extensive health care fraud scheme involving the fraudulent submissions of fake reimbursement claims to Medicaid, for services that were never provided to Medicaid beneficiaries. As Shabazz admitted in court today, he obtained the personal identifying information (PII) of Medicaid beneficiaries through community outreach programs, including football and mentoring programs, and misused the beneficiaries’ PII to create and submit hundreds of fraudulent reimbursement claims and to receive payment for services that were never in fact provided by R&I. Over the course of the scheme, Shabazz used the beneficiaries’ PII to submit more than 1,500 fraudulent reimbursement claims to Medicaid, some of which claimed that R&I provided services that exceeded 24 hours in a single day.

Court records show that the reimbursement payments made by Medicaid were deposited in bank accounts under Shabazz’s control. Shabazz used a portion of the fraudulent proceeds to pay kickbacks to his co-conspirators and to cover personal expenses, including to pay for personal travel, luxury items, and timeshares, and to make cash withdrawals.

Shabazz was released on bond following his plea hearing. The health care fraud conspiracy charge carries a statutory maximum penalty of 10 years in prison, and the money laundering conspiracy charge up to 20 years in prison. A sentencing date for Shabazz has not been set. 

In making today's announcement, U.S. Attorney King credited the FBI in Charlotte, IRS-CI, and NCDOJ’s Medicaid Investigations Division for the investigation that led to today’s guilty plea

Assistant U.S. Attorneys Cassye Cole and Mike Savage and Special Assistant U.S. Attorney Jermaine Sellers with the U.S. Attorney’s Office in Charlotte are prosecuting the case.

 

 

CHARLOTTE, N.C. – A federal jury in Charlotte returned a guilty verdict today against a physician assistant, for his role in a genetic testing scheme that resulted in the submission of more than $10 million in fraudulent claims to the Medicare program, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Colby Edward Joyner, 35, of Monroe, N.C., was convicted of one count of health care fraud and six counts of making false statements relating to health care matters.

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

“Joyner exploited telemedicine technology to siphon off money from Medicare, a federally-funded program that so many people rely on for their health care needs,” said U.S. Attorney King. “As the telehealth field continues to grow, federal prosecutors and investigators are keeping a watchful eye for scammers who seek to exploit this platform for their own benefit.”

“Joyner took a medical oath to base his care on a patient’s needs rather than his financial interests, but he violated that oath and now must face the consequences,” said Special Agent in Charge DeWitt.

“When health care professionals cause the submission of false claims to federal health care programs, they undermine the public’s trust in the health care profession and take valuable, taxpayer-funded resources away from their intended recipients,” said Special Agent in Charge Miles.

According to trial evidence, witness testimony and documents filed with the court, in 2018 and 2019, Joyner was a physician assistant in the Charlotte area who worked as an independent contractor for a physician staffing and telemedicine company. As trial evidence established, during the relevant time frame, Joyner signed fraudulent prescriptions for medically unnecessary genetic testing, specifically cancer genomic and pharmacogenetic testing, for hundreds of Medicare beneficiaries residing in North Carolina. Joyner had never met, seen or treated the beneficiaries, and only had brief telephone conversations with them or no interactions at all.

Trial evidence showed that Joyner received from the telemedicine company and its clients pre-populated prescription forms and related records for patients who were pre-selected for genetic testing, which he then electronically signed and returned, in exchange for $12—and later $15—for each purported consultation that he performed. 

According to evidence presented at trial, to conceal that Joyner was not the beneficiaries’ treating physician and that he did not conduct medical evaluations or examinations of the beneficiaries, Joyner falsified medical records in connection with the unnecessary prescriptions and falsely certified that the genetic tests were medically necessary. The government’s evidence established that Joyner’s scheme resulted in the submission of more than $10 million in fraudulent reimbursement claims to Medicare, and more than $3.6 million in payments.

Joyner was released on bond. A sentencing date has not been set. The health care fraud charge carries a maximum prison term of 10 years and a $250,000 fine. The charge of making false statements relating to health care matters carries a maximum penalty of five years in prison and a $250,000 fine, per count.

The FBI in Charlotte and HHS-OIG investigated the case.

Assistant U.S. Attorneys Katherine Armstrong and Matthew Warren, and Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte are prosecuting the case.

CHARLOTTE, N.C. – Yesterday, U.S. District Judge Kenneth D. Bell sentenced Shawn Lamont Hickman, 32, of Newton, N.C., and Amos Lamont Bruen, 47, of Valdese, N.C., to 156 months and 97 months in prison respectively for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison terms imposed, Hickman and Bruen were each ordered to serve four years of supervised release after they are released from prison.

Bennie Mims, 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 filed documents and information presented in court, beginning in December 2021, law enforcement became aware that Bruen was dealing narcotics out of a business he owned in Hickory, N.C., Amos Essential Oils. An undercover officer visited Bruen’s business and arranged to purchase narcotics from Bruen. Between December 2021 and February 2022, the undercover officer met several times with Bruen at his store and conducted several controlled purchases of methamphetamine totaling more than 1.5 kilograms. Court records show that Hickman was present on several occasions while the undercover officer was conducting the controlled purchases, often armed with a firearm.

According to court records, on February 26, 2022, law enforcement observed Hickman engage in narcotics transactions in the parking lot of a pool hall, Corner Pocket. Hickman was arrested and officers recovered a firearm and methamphetamine from Hickman’s vehicle. On March 1, 2022, law enforcement executed a search warrant at Bruen’s residence. During the search of Bruen’s home and vehicle, officers seized marijuana, cocaine, methamphetamine, and a firearm. An additional firearm and ammunition were also seized from Bruen’s business.

On November 22, 2022, Bruen pleaded guilty to distribution of methamphetamine. Hickman pleaded guilty on February 14, 2023, to possession with intent to distribute methamphetamine. The defendants 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 thanked the ATF and the Hickory Police Department for their investigation of this case.

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

CHARLOTTE, N.C. – Luis Eduardo Nunez, 27, of Sugar Grove, N.C., was sentenced today to 84 months in prison for transporting 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 Nunez to serve 30 years of supervised release and 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, Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (NC SBI), and Chief Andy LeBeau of the Boone Police Department join U.S. Attorney King in making today’s announcement.

According to filed court documents and today’s sentencing hearing, beginning in May 2021, an undercover agent with HSI observed that Kik Messenger user “thatguy246011,” later identified as Nunez, was participating in private group chats dedicated to the distribution of child pornography. On multiple occasions, Nunez also used Kik Messenger to post images and videos depicting the sexual abuse of children. Court documents show that the undercover agent made contact with Nunez via Kik Messenger. Over the course of the exchanges, Nunez expressed his interest in viewing and trading child pornography and sent the undercover agent child pornography. In July 2021, HSI also received a tip from the National Center for Missing and Exploited Children concerning the same Kik messenger username, indicating that the user had uploaded 30 files through the app, most of which depicted child pornography.

On August 31, 2021, law enforcement executed a search warrant at Nunez’s residence. Over the course of the search, law enforcement seized Nunez’s cell phone. A forensic analysis of the phone’s contents identified at least 154 images and 18 videos of child pornography on the device. Court records indicate that investigators also spoke with Nunez at his residence. In a voluntary interview, Nunez admitted that he used Kik Messenger to transport child pornography. Nunez also admitted that he set up a new account on the app and used it to transport child pornography after his old one was shut down.

On October 7, 2022, Nunez pleaded guilty to transporting child pornography. 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 HSI, NC SBI, and the Boone Police Department.

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.

 

 

CHARLOTTE, N.C. – Marlin Hershey, 53, and Dana Bradley, 53, both of Cornelius, North Carolina, appeared before U.S. Magistrate Judge David C. Keesler and pleaded guilty to wire fraud conspiracy for orchestrating a large-scale investment scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

North Carolina Secretary of State Elaine F. Marshall and Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, join U.S. Attorney King in making today’s announcement.

According to filed court documents and the plea hearings, from approximately 2009 to 2021, Hershey and Bradley conspired to defraud numerous victims who invested in two unregistered securities offerings promoted by the defendants, Performance Retire on Rentals, LLC (Performance Retire), and Distressed Lending Fund (DLF). As the defendants admitted in court today, both projects eventually failed causing significant losses to investors.

As reflected in court documents, to induce investors to invest their money, Hershey and Bradley provided victims with investment materials for the two securities offerings that contained false and misleading statements and did not disclose material information. For example, Hershey and Bradley failed to disclose that they received commission-like payments based on the amount of investments they sold. In fact, the defendants often provided investors with offering materials that represented the opposite – that nobody would be paid a commission in connection with the investments. Contrary to their statements, the defendants received payments that were typically 10% of an investor’s initial investment and often received an additional payment when an investor extended an investment. In this manner, Hershey and Bradley received hundreds of thousands of dollars in undisclosed payments from the sale of securities. Filed documents also show that, in addition to these payments, the defendants received regular undisclosed “management” fees from Performance Retire and DLF.

According to court records, Hershey and Bradley also failed to disclose to investors other material information, including negative information about the defendants’ backgrounds and the financial woes faced by some of the entities for which they were soliciting investments. To the contrary, because the defendants often solicited the same group of investors to invest in the various projects, the defendants took steps to conceal such financial difficulties by making undisclosed loans to various entities so that the entities could, in turn, make their required interest payments to investors. Hershey and Bradley also solicited new investors and used the new investors’ money to repay the loans and to make Ponzi-style payments to previous investors. In addition, the defendants sent to investors periodic performance reports that failed to disclose material information about the status and health of their investments.

In 2019, investors learned for the first time that the projects in which they had invested were in financial distress and could no longer meet their significant obligations to investors.

After entering their guilty pleas the defendants were released on bond. The wire fraud conspiracy charge carries a maximum sentence of 20 years in prison and a $250,000 fine. A sentencing date has not been set.

In making today’s announcement U.S. Attorney King thanked the Securities Division of the North Carolina Secretary of State and the FBI for leading the joint investigation.

Assistant U.S. Attorneys Daniel Ryan and Taylor Stout, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.

ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Danquon Shermaine Brown, 32, of Asheville, to 33 months in prison followed by three years of supervised release for a firearms offense, announced Dena J. King, U.S. Attorney for the Western District of North Carolina

Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Carla Neadeau of the Cherokee Indian Police Department join U.S. Attorney King in making the announcement.

According to court documents filed in the case and the sentencing hearing, in 2014, Brown was convicted in federal court in the Western District of North Carolina of possession with intent to distribute cocaine base and was sentenced to 60 months in prison. Brown’s federal conviction prohibits him from possessing a firearm or ammunition.

Court records show that in February 2022, officers with the Cherokee Indian Police Department (CIPD) received information that Brown, who at the time was staying at Harrah’s Cherokee Hotel and Casino in Cherokee, had outstanding arrest warrants in Buncombe County. On February 16, 2022, Brown checked out of the hotel. On the same day, CIPD officers arrested Brown after they stopped his vehicle near Highway 19 in Cherokee. Over the course of the arrest, CIPD officers recovered from Brown a handgun which was loaded with 12 rounds of ammunition.

On March 1, 2023, Brown pleaded guilty to one count of felon in possession of a firearm and ammunition. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons.

In making today’s announcement, U.S. Attorney King thanked the Cherokee Indian Police Department and the ATF for their assistance with the investigation.

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

CHARLOTTE, N.C. – Red Ventures, LLC and MYMOVE, LLC (together, “MYMOVE”) have agreed to pay the United States $2.75 million to resolve allegations that they violated the False Claims Act by knowingly withholding funds owed to the U.S. Postal Service (“USPS”) under contractual agreements connected to the USPS change of address process. 

The United States alleged that MYMOVE had a contractual obligation to share monthly gross revenue related to a certain program with USPS, but instead, MYMOVE improperly and secretly deducted some of its own costs before sharing revenue with USPS – essentially changing the contractual revenue share provision at issue from one of gross revenue to one of net revenue, a change favorable to MYMOVE’s profits at the expense of revenue owed to USPS.

The settlement also resolves allegations that MYMOVE improperly and knowingly allocated labor costs related to this same contract, under which MYMOVE bore all of the program costs, to another contract, that contained a profit-sharing agreement with USPS, thereby also increasing MYMOVE’s profits at USPS’s expense by improperly passing off a portion of its labor costs to USPS.

“This settlement demonstrates that those who cheat the government will be held accountable,” said Dena J. King, U.S. Attorney for the Western District of North Carolina. “My office will continue to investigate and hold responsible those who seek to profit from defrauding federal agencies.”

“We are gratified to have contributed to this investigation and applaud the exceptional work by the United States Attorney’s Office for protecting both U.S. Postal Service revenue and the integrity of our change of address program,” said Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service (USPS), Office of Inspector General (OIG). “Special Agents of the USPS OIG will continue to investigate those who would engage in fraudulent activities designed to defraud the Postal Service. The settlement delivered in this case represents a win for the USPS and for all law enforcement agencies who work together to ensure that justice is served.”

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by former MYMOVE employee Marcos Arellano. Under those provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Arellano v. MYMOVE, LLC and Red Ventures, LLC, No. 3:20-cv-255 (W.D.N.C.).  

Assistant U.S. Attorney Seth Johnson and Investigator Cathleen Hollowell of the U.S. Attorney’s Office in Charlotte investigated the matter in conjunction with the USPS Office of Inspector General.

The claims resolved by the settlement are allegations only. There has been no determination of liability.

 

                                          

CHARLOTTE, N.C. – Darren Lee Joy, 63, of Matthews, N.C. was sentenced yesterday in federal court before U.S. District Judge Frank D. Whitney for tax evasion, announced Dena J. King, U.S. Attorney for the Western District of North Carolina, and Stuart M. Goldberg, Acting Deputy Assistant Attorney General for the Justice Department’s Tax Division.

Joy received a sentence of 36 months in prison followed by two years of supervised release. 

Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) joins U.S. Attorney King and Acting Deputy Assistant Attorney General Goldberg in making the announcement.

According to court documents filed in the case and the sentencing hearing, from 1987 through 1990, 1993, 1996 through 2008, and 2010 through 2021, Joy did not file individual income tax returns despite earning more income than the minimum filing requirement. In order to evade his taxes, Joy submitted and maintained with his employers Forms W-4 and state tax forms, falsely claiming that he was exempt from federal and state income tax withholding when he was not entitled to claim exempt status. As a result, court documents show that taxes were not withheld from his wages and little to no taxes were paid over to the IRS or his state of residence. In total, Joy earned more than $1.8 million in income and owed the IRS and California more than $380,000 in taxes. 

On July 19, 2022, Joy pleaded guilty to one count of tax evasion for his 2015 tax return.

Joy’s original sentencing date was April 26, 2023, however, he failed to appear, and a bench warrant was issued for his arrest. During the sentencing, Judge Whitney found that Joy obstructed justice by failing to appear for his original sentencing date and by filing numerous frivolous documents with the Court and the IRS. In pronouncing the sentence, Judge Whitney said that this sentence should show others that there are consequences for not paying your taxes. In addition to the term of imprisonment, the Court ordered Joy to pay $359,859 in restitution to the IRS and $23,058 in restitution to the State of California.

U.S. Attorney King and Acting Deputy Assistant Attorney General Goldberg thanked IRS-CI for their investigation of the case.

Assistant U.S. Attorney Caryn Finley of the Western District of North Carolina and Trial Attorney Brian Flanagan of the Justice Department’s Tax Division prosecuted the case.