Western District of North Carolina

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that a federal grand jury in Charlotte has indicted four co-conspirators for a scheme involving stolen United States Postal Service (USPS) money orders.

Jeff Krafels, Special Agent in Charge of the United States Postal Service, Office of the Inspector General (USPS-OIG) for the Mid-Atlantic Area Field Office (MAAFO), which oversees Charlotte, joins U.S. Attorney King in making today’s announcement.

Ravenna Lee Dorsey, Jr., 33, of Charlotte, Jaren Jamar Hopkins-Benton, 28, of Charlotte, Gregory Jeremy Singleton, 27, of Charlotte, and Shawn Joanta Brooks, 40, of Shelby, North Carolina, are each charged with conspiracy to defraud the United States by possessing and passing forged and altered USPS money orders, and possession of stolen and fraudulently altered USPS money orders.

According to allegations in the indictment, between November 2020 and February 2023, the co-conspirators acquired approximately 2,500 blank USPS money orders stolen from a Charlotte area post office. The indictment alleges that the co-conspirators purchased and used legitimate USPS money orders as “templates” to generate falsified and forged USPS money orders, which they deposited into multiple bank accounts and credit union accounts, and then withdrew the cash proceeds before the financial institutions detected the fraud. As alleged in the indictment, the co-conspirators redeemed approximately 800 of the stolen USPS money orders, causing losses totaling more than $750,000.

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

The conspiracy charge and each count of possession of stolen and fraudulently altered USPS money orders carry a maximum penalty of five years in prison and a $250,00 fine per count. A federal district court judge will determine each defendant’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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

Assistant U.S. Attorney Kenneth Smith of the U.S. Attorney’s Office in Charlotte is prosecuting the case. 

ASHEVILE, N.C. –David Green Edwards, 32, of Cherokee, N.C. was sentenced to 15 years in prison followed by a lifetime of supervised release for two counts of sexual contact with a minor occurring in 2014 in Indian Country, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Carla Neadeau of the Cherokee Indian Police Department join U.S. Attorney King in making today’s announcement.

According to filed court documents, in 2019, the child victim disclosed the sexual abuse dating back to 2014, when the victim would have been approximately five years old. Both the child and Edwards are enrolled members of the Eastern Band of Cherokee Indians. According to information filed with the court, the child victim disclosed that, on at least two different instances, Edwards touched inappropriately the victim’s private area with his hand and genitalia. Information presented in court showed that Edwards was interviewed multiple times by law enforcement and denied sexually abusing the child, however he did admit that he wished the victim was closer to his age.

Edwards is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. When released he will be required to register as a sex offender.

In making today’s announcement U.S. Attorney King thanked the Federal Bureau of Investigation and the Cherokee Indian Police Department, for their investigation of the case and the North Carolina State Bureau of Investigation for their assistance.

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

STATESVILLE, N.C. – A federal jury in Statesville returned a guilty verdict today against Jermaine Douglas Grandy for trafficking fentanyl and illegal possession of firearms, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Grandy, 41, of Lenoir, N.C., was convicted 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.

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 filed court documents, evidence presented at trial and witness testimony, 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 made trips there to purchase fentanyl pills in bulk quantities. The evidence further established that 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.

Grandy is currently in federal custody. The drug conspiracy and the possession with intent to distribute charges each carry a minimum penalty of 10 years and a maximum penalty of life in prison, the possession of a firearm in furtherance of a drug trafficking crime carries a maximum penalty of five years to be served consecutively with any other term imposed, and the possession of a firearm by a felon charge carries a maximum sentence of 10 years in prison. A sentencing date for Grandy has not been set.

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. 

CHARLOTTE, N.C. – A federal grand jury in Charlotte returned a criminal indictment charging Russell J. Martini, 45, of Bay Shore, New York, with cyberstalking, stalking, kidnapping, and making interstate threats, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney King in making today’s announcement.

According to allegations in the indictment, from April to May 2022, Martini sent repeated harassing and threatening communications to an individual identified in court documents as “Jane Doe.” The indictment alleges that Jane Doe knew Martini and had obtained a protection order in New York that prohibited the defendant from contacting her. In April 2022, Jane Doe moved from New York to Charlotte. Soon thereafter, Martini allegedly began a cyberstalking campaign against Jane Doe, and used texts, emails and social media platforms to send Jane Doe and members of her family harassing messages and threats of death and bodily injury. Martini also allegedly created a public social media account in Jane Doe’s name and used a compromising photo of the victim as a profile picture. The indictment further alleges that Martini threatened to publish sexual photos and videos of Jane Doe online and on popular social media websites if Jane Doe did not respond to Martini’s communications.

According to the indictment, in May 2022, Martini traveled to Charlotte and attempted to kidnap Jane Doe. The indictment alleges that Martini waited at Jane Doe’s apartment complex and attacked her as she walked up the stairs to her apartment. Martini allegedly attempted to drag the victim to his car but a bystander intervened and Martini fled. After the attack, Martini allegedly sent Jane Doe an email asking her if she was “ready for round two” and threatened to kill her.

Martini is currently in state custody and will be scheduled to appear in federal court. He faces a maximum penalty of up to life in prison for the kidnapping charge, and a maximum prison term of five years for each offense of cyberstalking, stalking, and communicating interstate threats.

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

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

Assistant United States Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte is prosecuting the case.              

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CHARLOTTE, N.C. – Cody Allen Wright, 24, of Mooresville, N.C. was sentenced today to 240 months in prison for possession of child sexual abuse material that involved a prepubescent minor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Wright was ordered to serve a lifetime under court supervision and to register as a sex offender after he is released from prison.

Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), and Sheriff Darren Campbell of the Iredell County Sheriff’s Office join U.S. Attorney King in making today’s announcement.

According to filed court documents and today’s court hearing, between December 2019 and June 2020, Wright knowingly possessed and accessed images and videos that contained child sexual abuse material (CSAM). Court records show that the Iredell County Sheriff’s Office began an investigation after receiving multiple cybertips that an individual later identified as Wright was using a Dropbox account to upload and store CSAM. Over the course of the investigation, law enforcement conducted a search warrant at Wright’s residence from which they seized two cellular phones, a laptop and other electronic devices. A forensic analysis of the devices revealed that Wright possessed more than 1,500 files that contained images and videos of children, some younger than12, being sexually abused.

In addition to locating child sexual abuse material, law enforcement also determined that Wright was using messaging apps like Kik and Discord to chat about and trade CSAM with other individuals. In one instance, Wright engaged in a chat during which he advised another app user on how to access CSAM on the dark web.

On September 26, 2022, Wright pleaded guilty to possession of child pornography that involved a prepubescent minor who had not yet attained 12 years of age.

At today’s court hearing, U.S. District Judge Kenneth D. Bell ordered Wright to serve the maximum statutory sentence for the offense, after the Court found that the defendant had sexually abused a minor. According to court records, while the federal investigation was ongoing, Wright was arrested by local law enforcement and was convicted in state court of engaging in sexual contact with a minor he met online. As a result of the state conviction, Wright was sentenced to 155 months in prison. Judge Bell ordered 150 months of Wright’s federal prison term to be served consecutive to the state sentence.

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

Assistant United States Attorneys Daniel Cervantes and Stephanie Spaugh 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

CHARLOTTE, N.C. – Cormelius Smith, 32, a prolific methamphetamine trafficker in Wadesboro, N.C., was sentenced to 151 months in prison followed by five years of supervised release today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Smith’s co-conspirator, Jack Kelly Leak, 49, also of Wadesboro, was ordered to serve 121 months in prison followed by five years of supervised release for his role in the drug distribution ring.

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

According to information contained in court documents and court proceedings, between September 2021 and April 2022, the DEA began an investigation into Smith’s methamphetamine trafficking activities in and around Wadesboro. Over the course of the investigation, law enforcement determined that Smith was a prolific drug trafficker responsible for supplying methamphetamine to a network of local dealers in Anson County, including Leak. Court records also show that Smith’s trafficking activities extended beyond Anson County, to include Union, Richmond, Stanly, and Mecklenburg Counties.

According to documents filed with the court, over the course of the investigation Smith engaged in multiple drug transactions with confidential sources cooperating with law enforcement. On December 8, 2021, law enforcement executed an arrest warrant at Smith’s residence, from which they seized methamphetamine, digital scales, firearms and more than $23,000 in drug proceeds. At today’s sentencing hearing, the Court determined that Smith, assisted by Leak and others, was responsible for trafficking more than two kilograms of methamphetamine.

Smith and Leak pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine, and distribution of methamphetamine. The defendants are currently in federal custody. They 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 DEA and the Wadesboro Police Department for their investigation of the case, and thanked the Anson County Sheriff’s Office, the Union County Sheriff’s Office, the Richmond County Sheriff’s Office, the Stanly County Sheriff’s Office, the Charlotte-Mecklenburg Police Department, and the Marshville Police Department for their assistance.

U.S. Attorney King also thanked the District Attorney’s Office in Prosecutorial District 21 which encompasses the counties of Anson and Richmond, the District Attorney’s Office in Prosecutorial District 30 which has jurisdiction over Union County, and the District Attorney’s Office in Prosecutorial District 28, which includes Stanly County.

Assistant United States Attorneys Regina Pack and Christopher Hess of the U.S. Attorney’s Office prosecuted the case.

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

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Keishaun Leroy Anderson, 20, and Kevin Matias Lopez, 29, both of Charlotte, were sentenced for robbing and attempting to rob multiple gas stations in Charlotte.

Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.

U.S. District Judge Robert J. Conrad Jr. sentenced Anderson to 111 months in prison, followed by three years of supervised release. Anderson pleaded guilty to Hobbs Act robbery and possession and brandishing of a firearm in furtherance of a crime of violence. Lopez was sentenced to 63 months in prison followed by three years of supervise release, after pleading guilty to conspiracy to commit Hobbs Act robbery and Hobbs Act robbery.

According to court documents and today’s court hearings, on November 1, 2020, Anderson and Lopez robbed and attempted to rob multiple gas stations in the Charlotte area in the span of a hour. Court records show that the first attempted robbery took place at a 7-Eleven on Nations Ford Road in Charlotte, at approximately 12:45 a.m. During this incident, the store clerk observed Anderson approach the store with what appeared to be rifle or a shotgun. The clerk was able to quickly activate the door’s remote control lock mechanism and call 911. Anderson and Lopez fled the scene in their vehicle.

The second attempted robbery took place at a Circle K on South Tryon Street in Charlotte at approximately 1:04 a.m. Court records show that, during this incident, Anderson attempted to enter the gas station which was closed at the time. The clerk who was inside the store observed Anderson attempting to enter the store and was able to further secure the closed doors with zip ties. Lopez then came to the door and attempted to cut the zip ties with a knife but was unsuccessful. Anderson and Lopez left the gas station in their vehicle.

According to court documents, at approximately 1:12 a.m., the defendants robbed a Circle K located on South Tryon Street. During this robbery, Anderson entered the store, pulled a shotgun and pointed it at the store clerk. Anderson then ordered the clerk to give him money from the safe and the register. Anderson and Lopez took the money and drove away in their vehicle.

The next robbery took place at a 7-Eleven on Steele Creek Road in Charlotte, at approximately 1:27 a.m. Court records show that Anderson came into the store with a shotgun and demanded money and other items from the store clerk. Anderson then cocked the shotgun and took money, cigarettes and cigars from the clerk before he fled the scene with Lopez.

While CMPD officers were responding to the most recent robbery incident, another CMPD officer anticipated the location of the next robbery and drove to a gas station on Steele Creek Road. While there, the officer observed Anderson and Lopez arrive in their vehicle at the gas station and leave shortly thereafter. Law enforcement followed the defendants’ vehicle into the parking lot of an apartment complex where Anderson and Lopez were arrested. Over the course of the arrest, law enforcement located the shotgun Anderson had used to carry out the spree of robberies and attempted robberies.

At today’s sentencing hearing, Judge Conrad noted that the crimes were committed in a “harrowing and menacing fashion.”

The defendants are currently in federal custody. They will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

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

Assistant United States Attorneys Regina Pack and David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.

 

 

ASHEVILLE, N.C. – Phyllis Ann Garcia, 31, of Hudson, N.C., was sentenced yesterday to 54 months in prison for bank fraud and related charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Garcia was also ordered to serve three years of supervised release after she completes her prison term and to pay $18,418.16 in restitution.

Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office, Sheriff Alan C. Jones, of the Caldwell County Sheriff’s Office, and Chief Reed Baer of the Hickory Police Department join U.S. Attorney King in making today’s announcement.

According to court documents and court hearings, between 2020 and 2021, Garcia and her co-conspirators stole checks, money orders, credit cards, and other financial and personal identifying information (PII) of victims in Caldwell and Catawba Counties and used it to defraud banks and other financial institutions. Garcia obtained the victims’ PII, debit cards, credit cards, checks or money orders from the homes of acquaintances or stole them from residential and business mailboxes, an activity Garcia and her co-conspirators referred to as “mailboxing.” Garcia and her co-conspirators forged the victims’ signatures or altered the names on the stolen checks and money orders, cashed them, and split the proceeds. Court records show that Garcia and the co-conspirators also used victims’ debit cards and credit cards to make purchases or used the victims’ stolen PII to obtain credit cards in their names. According to court records, at least 247 individuals were victims of Garcia’s mail theft scheme. Law enforcement also determined that Garcia and her co-conspirators were responsible for the theft of at least 495 pieces of mail from residential and business mailboxes.

On August 31, 2022, Garcia pleaded guilty to conspiracy to commit bank fraud, access device fraud, and bank fraud. She is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney King thanked the FBI, USPIS, the Catawba County Sheriff’s Office, the Caldwell County Sheriff’s Office and the Hickory Police Department for their investigation of the case.

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

 

CHARLOTTE, N.C. – Six members of a poly-drug trafficking ring have been sentenced to prison, 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.

“The six defendants were members of a drug trafficking organization that distributed deadly drugs like fentanyl throughout Charlotte,” said U.S. Attorney King. “In keeping with our efforts to protect the community, we will continue to partner with our federal, state and local law enforcement partners to identify and prosecute trafficking networks that spread drugs and drug-induced violence in our community.”

“Drug trafficking often has a direct link to violent crime,” said ATF Special Agent in Charge Mims. “When we can stop a major trafficking network and disrupt the flow of drugs into our communities, we have a better chance of decreasing violent crime and keeping our streets safe.” 

U.S. District Judge Kenneth D. Bell sentenced the six defendants as follows:

• Jakieran Harris, 27, of Charlotte, was sentenced to 108 months in prison, followed by three years of supervised release.
• Laricco Eugene Sherrill, Jr., 23, of Charlotte, was sentenced to 84 months in prison, followed by four years of supervised release.
• Marquez Maxwell, 27, of Charlotte, was sentenced to 54 months in prison, followed by three years of supervised release.
• Quentin Nathaniel Stowe, 28, of Charlotte, was sentenced to 48 months in prison, followed by three years of supervised release.
• Brian Clinton, 24, of Charlotte, was sentenced to 42 months in prison, followed by three years of supervised release.
• Sadarian Armstrong, 41, of Charlotte, was sentenced to 24 months in prison, followed by three years of supervised release.

According to court documents and court proceedings, beginning as early as January 2020 through March 2022, the six men were members of a drug trafficking organization (DTO) that distributed narcotics in Mecklenburg County and surrounding areas. Court records show that the DTO used several residences in Charlotte, commonly referred to as “trap houses,” as bases of operation from which they sold the drugs. Over the course of the investigation, law enforcement seized from DTO members and the trap houses fentanyl, methamphetamine, cocaine, cocaine base, and marijuana, drug paraphernalia, digital scales, several firearms and ammunition, and over $63,650 in drug proceeds.

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

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

 

ASHEVILLE, N.C. – Brandon Todd O’Dell, 34, of Hiawassee, Georgia, was sentenced today to 120 months in prison followed by five years of supervised release for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

According to documents filed with the court and today’s sentencing hearing, O’Dell conspired with other individuals to traffic methamphetamine in and around Jackson County and elsewhere in North Carolina. Court records show that on March 9, 2021, deputies with the Jackson County Sheriff’s Office were conducting a welfare check on a female who was a passenger in O’Dell’s vehicle. At the time, the vehicle was parked at the parking lot of a Dollar General Store in Sylva, N.C. Over the course of the service call, law enforcement received conflicting accounts from O’Dell, the female passenger, and another male passenger regarding their travel, the reason for their stop, and their ultimate destination. Subsequently, court records show that law enforcement conducted a search of O’Dell’s vehicle, from which they recovered methamphetamine, digital scales, small plastic bags, and other items commonly used for the repackaging and redistribution of methamphetamine. Over the course of the investigation, law enforcement determined that O’Dell is a Lt. in the Aryan Brotherhood in Georgia, and that he made multiple trips from Georgia to North Carolina to transport substantial quantities of methamphetamine.

On October 7, 2022, O’Dell pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine. He remains in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

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

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

 

ASHEVILLE, N.C. – U.S. Attorney Dena J. King announced today that Benjamin Dann Owens, 36, of Hayesville, N.C., was sentenced to 312 months in prison followed by five years of supervised release for conspiracy to distribute and to possess with intent to distribute fentanyl, methamphetamine, Oxycodone, and other narcotics as well as conspiracy to manufacture marijuana, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

According to filed court documents and court proceedings, on December 20, 2020, at approximately 2:55 a.m., a deputy with the Clay County Sheriff’s Office attempted to conduct a traffic stop of Owens’s vehicle for multiple traffic violations. Owens failed to obey and instead began to drive recklessly at high speed. Owens evaded law enforcement and proceeded to abandon his vehicle. When law enforcement located and searched Owens’s vehicle, they found multiple firearms and ammunition, knives, as well as methamphetamine, Oxycodone pills, and marijuana. Later the same day, Owens was observed walking around Hayesville carrying a bag. When law enforcement attempted to stop Owens, he ignored the officers, threw the bag he was carrying in the nearby woods, and fled on foot. Law enforcement recovered the bag, and inside they found more firearms and ammunition, over 1,100 pills containing fentanyl, methamphetamine, marijuana and other narcotics.

According to court documents, on December 21, 2020, law enforcement executed search warrants at Owens’s residence and outbuildings on the property. Law enforcement seized from the residence more drugs, firearms, and ammunition. Law enforcement also discovered a marijuana grow operation and removed more than 135 marijuana plants from a shed on the property.

On January 7, 2021, law enforcement spotted Owens driving in Hayesville.  Owens fled at high speed. Law enforcement followed Owens who eventually crashed his vehicle and fled on foot in the Nantahala National Forest. Owens was arrested shortly thereafter. Law enforcement recovered several loaded firearms, knives, and thousands of rounds of ammunition from the crash scene. Owens has multiple prior convictions in Georgia and North Carolina for drug trafficking, illegal gun possession, and other criminal offenses.

On August 19, 2022, Owens pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine, fentanyl, Oxycodone, marijuana, MDA, and Suboxone, and conspiracy to manufacture 100 or more marijuana plants. He remains in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney King thanked the Drug Enforcement Administration, the Clay County Sheriff’s Office, the Macon County Sheriff’s Office, the Swain County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their investigation of the case.

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

 

 

CHARLOTTE, N.C. – Today in federal court, U.S. District Judge Kenneth D. Bell ordered Herbert Leonel Diaz, 53, a naturalized citizen of the United States who was born in El Salvador and previously resided in Henderson, N.C., to serve eight months in prison for naturalization fraud, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Judge Bell ordered Diaz’s federal sentence to be served concurrent with the 35-year prison term Diaz is currently serving in California for committing sexual offenses against a child.

U.S. Attorney King is joined in making today’s announcement by Sean Ervin, Field Office Director of U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations Division (ICE-ERO).

According to court documents, trial evidence, and witness testimony, from December 2003 to August 2006, while residing in Corona, California, Diaz committed numerous sexual offenses against a child. In August 2006, the victim reported Diaz’s crimes to law enforcement. The following day, Diaz fled California and moved to Henderson, N.C. In November 2010, while residing in Henderson, Diaz submitted an application for naturalization to U.S. Citizenship and Immigration Services (CIS). Court documents show that Diaz lied on the application form by responding “No” to the question “Have you ever committed a crime or offense for which you were not arrested?” Diaz signed the form under penalty of perjury, and certified that his answers were true and correct. On March 2, 2011, Diaz appeared at the CIS office in Charlotte for a naturalization interview. During the interview, Diaz swore under oath that he had never committed a crime for which he had not been arrested. On March 30, 2011, at the CIS office in Charlotte, Diaz participated in a naturalization ceremony and was granted U.S. citizenship.

In 2012, North Carolina law enforcement arrested Diaz on an outstanding warrant related to his sexual crimes against a child and he was extradited to California. In 2014, Diaz pleaded guilty to five counts of lewd acts with a child and was sentenced to 35 years in prison.

In September 2021, U.S. District Court Judge Kenneth D. Bell found Diaz guilty of naturalization fraud following a bench trial. The conviction for naturalization fraud will result in an automatic revocation of Diaz’s citizenship.

In making today’s announcement, U.S. Attorney King thanked ICE-ERO for their investigation of the case and credited Operation False Haven which led to Diaz’s conviction. False Haven is an initiative by ICE-ERO to identify convicted sex offenders and other egregious individuals who fraudulently obtained U.S. citizenship.

Assistant U.S. Attorney Kenneth Smith of the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Sebastian Lefevers, 29, of Connelly Springs, N.C., to 120 months in prison followed by five years of supervised release for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

According to filed court documents and court proceedings, as early as February 2018, law enforcement began investigating Lefevers for trafficking methamphetamine. Over the course of the investigation, law enforcement utilized a confidential source to arrange the purchase of methamphetamine from Lefevers. The defendant was arrested when he came at an agreed upon location to finalize the drug transaction. At the time of the arrest, law enforcement recovered three ounces of one hundred percent pure methamphetamine from Lefevers. 

According to court documents, law enforcement obtained search warrants for Lefevers’s residence and a trailer, from which they seized nearly two kilograms of marijuana packaged in four vacuum-sealed bundles; a vacuum sealer, plastic baggies, and digital scale, all for packaging and distributing narcotics; four firearms and ammunition; and over $3,500 in drug proceeds. Over the course of the investigation, investigators determined that Lefevers was responsible for trafficking more than 13 kilograms of methamphetamine in Catawba County and the surrounding counties.

On March 30, 2022, Lefevers pleaded guilty to conspiracy to possess with intent to distribute methamphetamine. Lefevers remains in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney King thanked the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Watauga County Sheriff’s Office, the Burke County Sheriff’s Office and the Hickory Police Department for their investigation of the case.

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

ASHEVILLE, N.C. – Megan Emily Tate, 28, of Sylva, N.C., appeared before U.S. Magistrate Judge W. Carleton Metcalf this morning and pleaded guilty to distributing a substance that contained fentanyl which resulted in serious bodily injury, 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 North Carolina, and Sheriff Doug Farmer of the Jackson County Sheriff’s Office join U.S. Attorney King in making today’s announcement.

According to filed court documents and today’s plea hearing, in April 2021, deputies with the Jackson County Sheriff’s Office arrested Tate for suspected distribution of fentanyl. Court records show that while Tate was in custody at the Jackson County Detention Center, she supplied two inmates with fentanyl, causing them to overdose. As a result, both overdose victims were transported to the hospital and one victim was placed on a ventilator. Both victims later recovered from their drug overdose. According to court documents, over the course of the investigation into the drug overdose incidents, law enforcement determined that Tate had supplied each victim with a substance that contained fentanyl, which Tate was able to conceal and later retrieve from a body cavity.

According to the DEA, fentanyl is a synthetic opioid that is 50 times more potent than heroin and 100 times more potent than morphine. Fentanyl remains the deadliest drug threat in the United States. According to the CDC, more than 100,000 people in the United States died of drug overdoses and drug poisonings in the 12-month period ending in January 2022. Sixty-seven percent of those deaths involved synthetic opioids like fentanyl. Some of these deaths were attributed to fentanyl mixed with other illicit drugs like cocaine, methamphetamine, and heroin, with many users unaware they were actually taking fentanyl.

Tate is currently in federal custody. At sentencing, Tate faces a sentence of 20 years in prison. A sentencing date has not been set.

In making today’s announcement, U.S. Attorney King thanked the DEA’s Asheville Post of Duty and the Jackson County Sheriff’s Office for their investigation of this case.

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

 

ASHEVILLE, N.C. – A Henderson County man was sentenced to 14 years in prison today for receipt of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Todd Andrew Riley, 45, of East Flat Rock, N.C. was also ordered to serve a lifetime under court supervision, to register as a sex offender after he is released from prison, and to pay a $10,000 fine and $68,200 in restitution.

Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, joins U.S. Attorney King in making today’s announcement.

According to filed court documents and today’s sentencing hearing, in June 2019, HSI was alerted to an individual, later identified as Riley, using the Kik messaging application to receive child pornography. On June 25, 2019, HSI agents met with Riley who admitted to using Kik and other messaging applications and online platforms to view and receive child pornography. According to court records, a forensic examination of Riley’s electronic devices revealed that he possessed thousands of images and hundreds of videos of child pornography, some of which depicted the sexual abuse of toddlers and infants.

On August 12, 2022, Riley pleaded guilty to receipt of child pornography. He is currently in federal custody and he will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. 

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

The prosecution for the government was handled by Assistant U.S. Attorney Alexis Solheim of U.S. Attorney’s Office in Asheville.          

The 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.

ASHEVILE, N.C. –James Ralph Brady, 55, of Cherokee, N.C. was sentenced to four years in prison today followed by five years of supervised release for the arson of a home that caused approximately $10,000 in damage, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Brady was ordered to pay $10,000 in restitution.

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

According to filed court documents, on July 25, 2021, a residential structural fire was reported at 37 Bob Owle Road in Cherokee. The residence is a single-wide trailer and the fire was set to an exterior wall with damage done throughout the residence. Court records reveal that Brady was on house arrest on Tribal charges at the time and his ankle monitoring device pinged at the residence near the time the fire was discovered. According to court documents, when Brady was questioned by Tribal police he admitted throwing an incendiary device commonly called a “Molotov cocktail” near the residence before it caught fire. Law enforcement records show that Brady thought his intended target lived at the residence but was mistaken and that he had no dispute with the actual victim. The victim was able to put the fire out but not before substantial damage was done to the home.

Brady 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 Cherokee Indian Police Department for their investigation of the case.

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

 

ASHEVILLE, N.C. – U.S. Attorney Dena J. King co-hosted a seminar today in Asheville with the United States Secret Service on enhancing school safety.

Presented by experts with the U.S. Secret Service’s National Threat Assessment Center (NTAC), the seminar provided law enforcement, community members, mental health professionals, social workers, educators, school administrators and staff from various school districts and counties throughout Western North Carolina with information and key findings related to school threat incidents, risk management and assessment training, tools on how to identify potential threat indicators, and early intervention techniques aimed at increasing school safety.

Speaking at today’s event, U.S. Attorney King said, “Keeping children safe in schools is paramount. Each of us in this room understands that it takes a village not only to raise a child, but to keep a child safe. Today’s seminar is an example of our combined efforts to increase school safety by sharing important research and information on how to identify, respond and prevent threatening incidents in schools, so our students can stay safe, learn, and be their best.”

For over 20 years, the Secret Service’s NTAC has been conducting research, training, consultation, and information sharing on threat assessment and targeted violence prevention by collecting and analyzing data of incidents directed at government agencies and officials, workplaces, schools, colleges, universities, and other public spaces. The research-based approach to studying the behaviors associated with acts of violence supports the agency’s mission to protect communities and increase public safety. To learn more about Secret Service’s NTAC, click here.

 

CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Chadwick Javon Strong, also known as “Izeem Ockman Ackridge,” 45, of Shelby, N.C., to 214 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.

According to filed court documents and court proceedings, from 2018 to July 2021, Strong distributed fentanyl and cocaine in Mecklenburg, Gaston, and Cleveland Counties. Over the course of the investigation into Strong’s drug trafficking activities, law enforcement determined that the defendant sold and possessed with intent to distribute almost one kilogram of fentanyl, and that Strong sold the fentanyl with pill markings for a different substance. In addition to the narcotics, Strong was found in possession of more than $3,000 in cash and two handguns.

Strong pleaded guilty to conspiracy to distribute and to possess with intent to distribute

and distribution of fentanyl and cocaine. Strong remains in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

According to the DEA, fentanyl is a synthetic opioid that is 50 times more potent than heroin and 100 times more potent than morphine. Fentanyl remains the deadliest drug threat in the United States. Just two milligrams of fentanyl, which is equal to 10-15 grains of table salt, is considered a lethal dose. According to the CDC, 107,375 people in the United States died of drug overdoses and drug poisonings in the 12-month period ending in January 2022. A staggering 67 percent of those deaths involved synthetic opioids like fentanyl. Some of these deaths were attributed to fentanyl mixed with other illicit drugs like cocaine, methamphetamine, and heroin, with many users unaware they were actually taking fentanyl.

U.S. Attorney King credited today’s outcome to investigations led by the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF), which have resulted in the conviction of more than 70 individuals, and the seizure of over 567 kilograms of cocaine, over 30 kilograms of fentanyl, more than 17 kilograms of methamphetamine, more than six kilograms of cocaine base, and over four kilograms of heroin, 127 firearms, and more $437,000 in cash and other property.

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 Federal Bureau of Investigation, the Gastonia Police Department, the Charlotte-Mecklenburg Police Department, and Cleveland County Sheriff’s Office for their coordination and investigation of the case.

Assistant United States Attorneys Steven R. Kaufman and Erik Lindahl of the U.S. Attorney’s Office in Charlotte prosecuted the case. 

CHARLOTTE, N.C. – Joseph A. DiBruno, Jr., 54, of Gastonia, N.C., was sentenced today to 24 months in prison followed by two years of supervised release for bank fraud, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.  U.S. District Judge Frank D. Whitney ordered this sentence to be served consecutive to the remaining term of DiBruno’s federal prison sentence stemming from his 2008 federal fraud conviction.

Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, join U.S. Attorney King in making today’s announcement.

According to filed documents and statements made in court, in 2008, DiBruno was sentenced to more than 21 years in prison after pleading guilty in the Western District of North Carolina to conspiracy to defraud the United States, money laundering conspiracy, and concealment of assets. On April 8, 2020, DiBruno was approved for placement on home confinement due to the COVID-19 pandemic. At that time, the federal Bureau of Prisons calculated DiBruno’s estimated release date as June 2025.

Court records show that, after his release to home confinement in May 2020, DiBruno obtained or attempted to obtain loans from at least two financial institutions, based on fraudulent statements and false information he submitted on loan applications. For example, on one loan application DiBruno falsely claimed that he had been employed as Director of Data Analytics by a company listed as M.R.S., that he earned an average monthly salary of up to $8,000, and that he had lived at the residential address listed on the application for over four years, all of which information was untrue. According to court documents, between May 2020 and June 2021, DiBruno submitted at least five fraudulent loan applications to two financial institutions seeking funds totaling over $120,000.

In pronouncing the sentence, Judge Whitney stated that DiBruno received a “windfall” under the CARES Act but got “right back in the game” and had “a serious history of committing fraud” and “never learned his lesson.” 

On April 6, 2022, DiBruno pleaded guilty to making false statements to a credit union. He is currently in federal custody. He will be transferred to the custody of the federal Burau of Prisons upon designation of a federal facility.

The FBI and USPIS led the investigation. Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that a federal grand jury in Charlotte returned an indictment, charging two Charlotte businessmen with failing to account for and pay over to the Internal Revenue Service (IRS) more than $600,000 in trust fund taxes.

Donald "Trey" Eakins, Special Agent in Charge of the IRS, Criminal Investigation Division (IRS-CI), Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.

According to the indictment, rFactr was a company with offices in Charlotte, that sold software and provided ongoing support for that software to companies that were leveraging their social networks as part of their sales platforms. Richard Brasser was rFactr’s Chief Executive Officer and Gregory Gentner was its Chief Operating Officer. The indictment alleges that, from 2015 through 2017, Brasser and Gentner caused rFactr to collect more than $600,000 in trust fund taxes from the wages of its employees but neither accounted for the taxes by filing Forms 941 with the IRS nor timely paying over the withheld taxes to the IRS.

As alleged in the indictment, Brasser and Gentner had a history of noncompliance with rFactr’s employment tax obligations. Specifically, between 2013 and 2017, Brasser and Gentner allegedly failed to comply with rFactr’s employment tax obligations by failing to timely file rFactr’s employment tax returns and failing to timely pay over to the IRS rFactr’s employment taxes. In total, Brasser and Gentner allegedly caused rFactr to owe more than $1.1 million in employment taxes.

The indictment further alleges, between May 2018 and December 2021, Brasser evaded the payment of the trust fund recovery penalty (TFRP), by using nominee bank accounts to pay for personal expenses, including country club fees, luxury furniture, credit card bills, and private school tuition; purchasing real and personal property in the names of nominees instead of his own name; purchasing real and personal property and paying for other personal expenses while falsely representing to the IRS that he did not have sufficient funds to pay the TFRP; and making false oral and written statements to the IRS about his income, expenses, and assets.

Finally, the indictment also alleges that Brasser and Gentner both filed 2015 and 2016 tax returns which falsely reported that taxes were withheld and paid over to the IRS on their behalf by rFactr. As a result, Brasser either fraudulently reduced his tax due and owing or fraudulently received a refund, and Gentner fraudulently received a refund.

An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If convicted, Brasser and Gentner each face a maximum sentence of five years in prison for each of multiple counts of failing to account for and pay over the trust funds taxes and up to three years in prison for each of multiple counts of filing false personal tax returns. Brasser also faces a maximum sentence of five years in prison for evasion of payment, if convicted.

IRS-Criminal Investigation is investigating the case.

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

       

ASHEVILLE, N.C. – A federal jury in Asheville has convicted Tarrell Leshaun Williams, 42, of Cherokee, N.C., of possession of a firearm by a convicted felon, 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 Asheville Post of Duty, Jerin Falcon, Deputy Associate Director of the Bureau of Indian Affairs (BIA), Division of Drug Enforcement, and Chief David Zack of the Asheville Police Department join U.S. Attorney King in making today’s announcement.

According to filed court documents, trial evidence and witness testimony, on February 11, 2022, law enforcement officers attempting to serve Williams with a federal arrest warrant located the defendant at an apartment complex in Asheville. According to trial evidence, prior to effectuating the arrest warrant, law enforcement observed Williams placing an item – later identified as a Taurus 9mm firearm – in the trunk of his vehicle. Williams was arrested shortly thereafter. Williams has prior felony criminal convictions and he is prohibited from possessing a firearm.

Williams remains in federal custody. A sentencing date has not been set.

In making today’s announcement, U.S. Attorney King thanked the DEA’s Asheville Post of Duty, the BIA, and the Asheville Police Department for their investigation of the case and the Bureau of Alcohol, Tobacco, Firearms & Explosives for their substantial assistance.

Assistant U.S. Attorneys John Pritchard and Alexis Solheim of the U.S. Attorney’s Office in Asheville prosecuting the case.   

     

CHARLOTTE, N.C. – A federal jury in Charlotte has convicted Donald Booker, 57, of Charlotte, of multiple federal charges in connection with a scheme to obtain more than $11 million from the North Carolina Medicaid program, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. On December 9, 2022, Booker’s co-defendant, Delores Jordan, 54, of Louisville, Kentucky, pleaded guilty for her role in the fraudulent scheme.

Joining U.S. Attorney King in making today’s announcement are Michael C. Scherck, Acting 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, (IRS-CI) Charlotte Field Office, and North Carolina Attorney General Josh Stein, who oversees the North Carolina Medicaid Investigations Division (MID).

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

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

The jury convicted Booker of conspiracy to commit health care fraud, multiple violations of the Anti-Kickback Statute, money laundering conspiracy, and money laundering. Jordan pleaded guilty to healthcare fraud conspiracy and money laundering conspiracy. A sentencing date for the defendants has not been set.

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

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

     

CHARLOTTE, N.C. – A federal jury in Charlotte delivered a guilty verdict against Kenter O’Neal Ruff, 43, of Gastonia, N.C., for drug distribution, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. presided over the three-day trial which ended today.

Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Interim Chief Trent Conrad of the Gastonia Police Department join U.S. Attorney King in making today’s announcement.

According to filed court documents, evidence introduced at trial and witness testimony, over the course of an investigation into drug trafficking in Gaston County, law enforcement identified Ruff as a local drug distributor. According to trial evidence, on multiple occasions between October 2020 and April 2021, Ruff sold cocaine base to an individual cooperating with law enforcement. At the time, Ruff was on supervised release stemming from a prior federal drug conviction and had additional state convictions related to drug trafficking and drug possession.

The federal jury convicted Ruff of four counts of distribution of cocaine base. Ruff remains in federal custody. A sentencing date has not been set.

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.

U.S. Attorney King thanked the FBI and the Gastonia Police Department for their investigation of the case.

Assistant United States Attorneys Thomas Kent and Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte and Special Assistant United States Attorney (SAUSA) William Wiseman are prosecuting 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. –Valentino Cabral Darosa, 30, of Charlotte, was sentenced to 17 years in prison followed by three years of supervised release for the armed robbery of a local business and related firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.

According to filed court documents, evidence introduced at trial and witness testimony, on October 23, 2020, CMPD officers responded to a robbery service call at Atlantic Metals Xchange, located at 11318 N. Community House Road, in Charlotte. The store owner told officers at the scene that prior to opening for business an individual later identified as Darosa approached the store and knocked on the door. When the store owner did not immediately answer, Darosa walked away. The store owner then went outside and approached Darosa. Following a brief exchange, Darosa produced a firearm and forced the store owner into the business and into a back room. As trial evidence established, Darosa ordered the store owner to unplug the surveillance system’s recorder, then handcuffed the store owner and opened the safes. Darosa began stealing items from the safes and proceeded to duct-tape the store owner’s hands and ankles together. Court records show that Darosa took approximately $133,980 in property and cash and the surveillance system’s hard drive. Darosa also took the store owner’s backpack, which contained a firearm, cash, and the victim’s wallet. After Darosa fled the scene, the store owner managed to free himself and call 911 for assistance. On November 5, 2020, CMPD officers arrested Darosa at his apartment in Charlotte. During a search of Darosa’s apartment and vehicle, law enforcement recovered several items Darosa had stolen from the business. According to court records, Darosa was on post-release supervision when he committed the armed robbery. He also has multiple felony convictions in Mecklenburg and Cabarrus Counties and he is therefore prohibited from possessing a firearm.

A federal jury convicted Darosa of robbery of a business affecting interstate commerce, or Hobbs Act Robbery, using or carrying a firearm during and in relation to a crime of violence, and possession of a firearm by a felon. He is currently in federal custody.

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

Assistant U.S. Attorneys Christopher Hess and Dana Washington prosecuted the case.

STATESVILLE, N.C. – A federal jury in Statesville has convicted Alfonso Roman Brito, 43, of trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell presided over the three-day trial which ended on Wednesday.

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, evidence introduced at trial and witness testimony, in 2019, HSI, the DEA, the Burke County Sheriff’s Office, and the Catawba County Sheriff’s Office were investigating a Drug Trafficking Organization (DTO) operating in the Catawba County, Burke County, and surrounding communities. Trial evidence established that Brito was an inmate in the Georgia Department of Corrections and was coordinating the shipments of multiple kilograms of methamphetamine from the Atlanta area into the Western District of North Carolina. According to information presented at trial, between 2019 and into the fall of 2021, Brito orchestrated the delivery of more than 100 kilograms of methamphetamine from Georgia into North Carolina.

The federal jury convicted Brito of conspiracy to distribute and to possess with intent to distribute methamphetamine and distribution of methamphetamine, which carries a maximum term of life in prison and a $10,000 fine. Brito remains in federal custody. A sentencing date has not been set.

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 is prosecuting the case.

CHARLOTTE, N.C. – Today, Desmon Taylor Moore, 24, of Charlotte, was sentenced to 37 months in prison followed by three years of supervised release on multiple firearms offenses, 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, joins U.S. Attorney King in making today’s announcement.

According to filed court documents and court proceedings, between 2021 and March 2022, Moore engaged in the manufacturing and sale of firearms without a license. ATF agents investigating Moore determined that Moore illegally sold conversion devices (commonly known as “Glock switches”) which enable a semi-automatic handgun to function as an automatic.

Moore also engaged in the sale of multiple firearms and privately-made firearms (or “Ghost guns”), some of which had been converted into machineguns using the illegal conversion devices. Federal law prohibits the possession of machineguns and defines “machinegun” to include parts designed or intended for use in converting a weapon into a machinegun. According to court records, two undercover ATF agents also attended a class Moore taught on how to build privately-made firearms and install Glock switches.

On July 26, 2022, Moore pleaded guilty to multiple firearms offenses, including dealing and manufacturing firearms without a license, and possession and transfer of machineguns. Moore 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 ATF for their investigation of the case.

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

# # #

CHARLOTTE, N.C. – Miguel Angel Lopez-Resendiz, 28, a Mexican national residing in Charlotte, was sentenced to 262 months in prison followed by three years of supervised release today for trafficking over six kilograms of 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, Chief Johnny Jennings of the Charlotte Mecklenburg Police Department, and Chief Joseph Hatley of the Mint Hill Police Department join U.S. Attorney King in making today’s announcement.

According to court records and court proceedings, from June to September 2021, Lopez-Resendiz trafficked a substantial amount of methamphetamine in and around Mecklenburg County. Court records show that, on at least two occasions, Lopez-Resendiz sold methamphetamine to an undercover agent. On one such occasion, on September 9, 2021, Lopez-Resendiz met with the undercover agent in the parking lot of a restaurant, where he sold the agent nearly one kilogram of methamphetamine. On September 23, 2021, Lopez-Resendiz arranged another drug transaction with the undercover agent. When Lopez-Resendiz arrived to complete the transaction, law enforcement attempted to arrest him. Lopez-Resendiz fled, and law enforcement arrested him after a short foot chase. Law enforcement searched Lopez-Resendiz’s vehicle. In the trunk, law enforcement found nearly two kilograms of methamphetamine and a semiautomatic assault rifle loaded with a high capacity drum magazine capable of holding more than 100 rounds of ammunition. As part of the law enforcement operation, investigators also executed a search warrant at Lopez-Resendiz’s drug stash house, from which they seized over three additional kilograms of methamphetamine. Over the course of the investigation into Lopez-Resendiz, law enforcement determined that he had trafficked more than six kilograms of methamphetamine.

On June 24, 2022, Lopez-Resendiz pleaded guilty to possession with intent to distribute methamphetamine. 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 commended the DEA, CMPD and the Mint Hill Police Department for their investigation of the case.

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

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Soheil Akhavan Rezaie, 39, of Charlotte, was sentenced to 57 months in prison, followed by two years of supervised release for stealing mail from residential mailboxes and using the stolen information to commit wire fraud, and for violating the terms of his supervised release stemming from a 2017 conviction.

Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney King in making today’s announcement.

According to court records and court proceedings, beginning in 2021 through March 2022, Rezaie and others targeted neighborhoods in Charlotte and surrounding areas and stole large quantities of mail from residential mailboxes. The stolen mail included credit cards, tax forms, financial statements, personal identifying information (PII), and personal and business bank checks. As Rezaie previously admitted in court, he altered the amounts of the stolen checks or changed the names of the payees to his own and then deposited the altered checks into bank accounts he controlled. Rezaie then withdrew the funds before the victims and financial institutions had an opportunity to determine the checks were stolen. In other instances, Rezaie stole blank checks and wrote checks to himself, which he then cashed with various financial institutions. Rezaie caused more than $150,000 in loss through the fraudulent check cashing scheme. Court records also show that Rezaie used the stolen PII to create fake identification documents in the mail theft victims’ names.

Rezaie previously pleaded guilty to wire fraud. 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 FBI and USPIS for their investigation of the case.

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

Each year, the U.S. Postal Service® handles billions of letters and packages, the majority of which arrive safely at their intended destinations. According to USPIS, here are the extra steps the public can take to prevent mail theft and ensure that mail arrives safely at its destination:

• Promptly pick up mail – try not to leave letters and packages in the mailbox or at the door unattended for any length of time.
• Deposit mail close to pick up time – deposit outgoing mail into collection boxes before the last collection or inside the local postal office.
• Inquire about overdue mail – if you have not received valuable or important mail you’re expecting, contact the sender to inquire about it.
• Do not send cash – be careful about what you are sending in the mail. Avoid mailing cash and gift cards.
• Arrange for prompt pick up – if you will not be available to receive a package in person, contact the postal service to hold your package.
• Use the Hold for Pick Up option – when shipping packages, use the Hold for Pick Up option, so the recipients can pick up package at their local post office.
• Request signature confirmation – when mailing important mail, consider requesting a signature confirmation from the recipient.
• File a change of address – when moving, promptly file a change of address with the Postal Service.

To report suspected mail theft, please call USPIS at 1-877-876-2455.

 

 

Two men were sentenced yesterday for their roles in the submission of fraudulent loan applications seeking more than $1.7 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Izzat Freitekh, 57, of Waxhaw, North Carolina, was sentenced to four years in prison and his son Tarik Freitekh, aka Tareq Freitekh, 35, whose last known residence was in Glendale, California, was sentenced to 87 months in prison. The government previously seized and secured the forfeiture of approximately $1.3 million in PPP funds illegally obtained by the Freitekhs, which has been returned to a victim lender.

According to court documents and evidence presented at trial, Izzat and Tarik Freitekh obtained approximately $1.7 million by submitting multiple fraudulent PPP loan applications for companies owned by Izzat Freitekh: La Shish Kabob, La Shish Kabob Catering, Green Apple Catering, and Aroma Packaging. The loan applications misrepresented the number of employees and payroll expenses. After obtaining the fraudulent loan proceeds, the Freitekhs engaged in unlawful monetary transactions with the proceeds of the scheme, including making $30,000 in payments to family members. In March 2022, a federal jury in the Western District of North Carolina convicted the Freitekhs of money laundering and other offenses.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Dena J. King for the Western District of North Carolina; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service (USPIS) Atlanta Division; Special Agent in Charge Donald E. Eakins of the IRS Criminal Investigation (IRS-CI) Charlotte Field Office; and Special Agent in Charge Mark Morini of the U.S. Treasury Inspector General for Tax Administration (TIGTA) Southeast Field Division made the announcement.

The USPIS, IRS-CI, and TIGTA investigated the case.

Trial Attorneys Joshua DeBold and Matt Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark Odulio for the Western District of North Carolina prosecuted the case.

The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 192 defendants in more than 121 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.

In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with 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 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 https://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 https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

CHARLOTTE, N.C.  –  U.S. Attorney Dena J. King announced that two men were sentenced yesterday for their roles in the submission of fraudulent loan applications seeking more than $1.7 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service (USPIS), Atlanta Division; Special Agent in Charge Donald E. Eakins of the IRS Criminal Investigation (IRS-CI), Charlotte Field Office; and Special Agent in Charge Mark Morini of the U.S. Treasury Inspector General for Tax Administration (TIGTA), Southeast Field Division, join U.S. Attorney King in making the announcement.

Izzat Freitekh, 57, of Waxhaw, North Carolina, was sentenced to 48 months in prison and his son Tarik Freitekh, aka Tareq Freitekh, 35, whose last known residence was in Glendale, California, was sentenced to 87 months in prison. The court also ordered each defendant to serve three years under court supervision upon completion of their prison terms The government previously seized and secured the forfeiture of approximately $1.3 million in PPP funds illegally obtained by the Freitekhs, which has been returned to a victim lender.

According to court documents and evidence presented at trial, Izzat and Tarik Freitekh obtained approximately $1.7 million by submitting multiple fraudulent PPP loan applications for companies owned by Izzat Freitekh: La Shish Kabob, La Shish Kabob Catering, Green Apple Catering, and Aroma Packaging. The loan applications misrepresented the number of employees and payroll expenses. After obtaining the fraudulent loan proceeds, the Freitekhs engaged in unlawful monetary transactions with the proceeds of the scheme, including making $30,000 in payments to family members. In March 2022, a federal jury in the Western District of North Carolina convicted the Freitekhs of money laundering and other offenses.

The USPIS, IRS-CI, and TIGTA investigated the case.

Assistant U.S. Attorney Mark T. Odulio with the Western District of North Carolina and Trial Attorneys Joshua DeBold and Matt Kahn of the Criminal Division’s Fraud Section prosecuted the case.

In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with 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 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 https://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 https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

CHARLOTTE, N.C. – Nkhenge Shropshire, 49, of Charlotte, was sentenced today to 42 months in prison followed by three years of supervised release for submitting fraudulent loan applications to the U.S. Small Business Administration (SBA) to obtain COVID-19 relief loans, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

“At a time that businesses and communities were doing their best to survive the devastating impact of COVID-19, Shropshire was busy trying to make a quick buck and take advantage of the aid administered by the government,” said U.S. Attorney King. “There’s a price to pay by those who seek to exploit federal aid programs and that’s prison time. Together with our law enforcement partners we will continue to investigate and prosecute COVID-19 fraudulent schemes and hold perpetrators of fraud accountable for their actions.”

“In the midst of a pandemic and as the economy suffered, this defendant lined her pockets by cheating the federal aid provided by the government to assist those communities who struggled during these unprecedent times,” said Inspector in Charge Coke. “Our office will relentlessly pursue fraudsters that defraud federal programs for greed and personal gain.”

According to filed court documents and court proceedings, Shropshire conspired with others to defraud the SBA by submitting fraudulent applications for Economic Disaster Relief Loans (EIDL), available under the expanded Coronavirus Aid, Relief, and Economic Security (CARES) Act, to business owners adversely impacted by the COVID-19 pandemic. To obtain a loan under the EIDL program, business owners are required to submit certain information in support of the application, including information about the business’s gross revenues in the 12 months prior to COVID-19’s impact and the number of workers employed by the company, among other things.

According to court records, between July 2, and September 2, 2020, Shropshire and her co-conspirators submitted at least 10 fraudulent EIDL applications to the SBA. The applications and supporting documents were for fictitious businesses and contained false information regarding the total number of employees employed by each business and total gross revenues. Court records show that Shropshire and her co-conspirators attempted to obtain at least $331,072 in relief funds. The SBA accepted and paid out at least $45,000 to Shropshire and her co-conspirators as a result of the scheme. Court records reflect that Shropshire spent the fraudulent proceeds on personal expenses, including hotel stays, shopping sprees, and cars.

In 2014, Shropshire was convicted of filing false tax returns and lying on a loan application and was sentenced to 33 months in prison and five years of supervised release. Shropshire was on federal supervised release when she participated in the EIDL fraud scheme.

On May 6, 2022, Shropshire pleaded guilty to wire fraud conspiracy. She is in federal custody and will be transferred to the federal Bureau of Prisons upon designation of a federal facility.

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

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

In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with 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 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 https://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 https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Timothy Scott Pennington, 56, of Dallas, N.C., to 35 years in prison for possession of child pornography that involved a prepubescent minor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Whitney also ordered Pennington to serve a lifetime under court supervision upon completion of the prison term and to register as a sex offender.

Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), join U.S. Attorney King in making today’s announcement.

“The sexual exploitation of children is a deplorable crime, and recidivist offenders who violate our nation’s child pornography laws will get the VIP treatment from federal prosecutors and our law enforcement partners. Pennington’s lengthy sentence is a testament to my office’s commitment to protect vulnerable children and bring to justice those who cause them harm,” said U.S. Attorney King.

“Protecting children from predators like Mr. Pennington it a top priority of HSI. As a repeat offender, this individual posed a serious threat to children in our community and, thanks to the teamwork of HSI, SBI and the U.S. Attorney’s Office, he is being held accountable for his criminal activity,” said HSI Special Agent in Charge Martinez.

“The work of the U.S. Attorney’s Office, HSI, and our agents on cases like this is why it is so important that we continue to work together to bring individuals who prey on the most vulnerable in our society, children, to justice,” said SBI Director Schurmeier.

According to filed court documents and today’s sentencing hearing, on June 1, 2021, acting on a cybertip submitted to the National Center for Missing and Exploited Children, law enforcement found several images of child pornography, including those involving a toddler, in Pennington’s Google account. Court documents show that Pennington is a recidivist sex offender with prior second degree sexual offense convictions in North Carolina. At the time of this offense, Pennington was serving a term of post-release supervision stemming from a North Carolina conviction for Felony Indecent Exposure. On June 2, 2021, federal, state and local law enforcement conducted a search at Pennington’s residence. According to court records, at that time, Pennington admitted to investigators to taking several of the child pornography images found by investigators, including images involving a toddler. In addition, over the course of the search, law enforcement seized two cell phones from Pennington. A forensic analysis of the devices revealed that Pennington possessed images and videos of child pornography, some of which depicted the sexual abuse of children. At today’s sentencing hearing, Judge Whitney applied a sentencing enhancement related to Pennington’s production of the child pornography. 

In fashioning the sentence, Judge Whitney highlighted the defendant’s extensive criminal history of sexual offenses involving children and cited the need for specific deterrence, noting that the sentence would protect the public and send a message to the community that there are severe consequences for engaging in child exploitation.

On May 11, 2022, Pennington pleaded guilty to two counts of possession of child pornography that involved a prepubescent minor. 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 commended the HSI and SBI for their investigation of the case and thanked the North Carolina Division of Adult Correction and Juvenile Justice and the Gaston County Sheriff’s Office for their invaluable assistance. U.S. Attorney King also thanked Gaston County District Attorney Travis Page for his office’s coordination and assistance in this case.

Assistant U.S. Attorney Mark T. Odulio 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. – The operators of a $4 million Ponzi scheme were sentenced to prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney ordered Austin Delano Page, 27, of Grover, N.C., to serve 97 months in prison, followed by two years of supervised release. Brandon Alexander Teague, 27, of Belmont, N.C., was sentenced to 48 months in prison and two years of supervised release. The defendants were also ordered to pay restitution in the amount of more than $4.1 million.

North Carolina Secretary of State Elaine F. Marshall, Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, join U.S. Attorney King in making today’s announcement.

“The defendants orchestrated an elaborate investment fraud scheme that caused extensive financial harm to their unsuspecting victims, some of whom were at or near retirement age,” said U.S. Attorney King. “Working with our law enforcement counterparts we will continue to investigate and prosecute scoundrels who cheat and lie their way into their investors’ pockets, only to squander away their victims’ money.”

“People placed their faith as well as their funds with Mr. Page and Mr. Teague. That trust was repeatedly broken over the course of this scam as Page and Teague spun false promises and falsified documents to create a fiction of highly lucrative trading, at one point indicating a $16 million balance for a brokerage account that was in fact broke, with a balance of under $7. Calling our Securities Division would have revealed that neither Page nor Teague were registered to sell securities in North Carolina, and that should always send up a major red flag for anyone considering an investment,” said Secretary Marshall.

“The U.S. Postal Inspection Service has been at the forefront of protecting consumers from fraud schemes for many years,” said Inspector in Charge Coke. “The U.S. Postal Inspection Service is proud to work along our fellow law enforcement partners and hold accountable anyone who engages in this type of financial fraud scheme.”

According to filed documents and court hearings, from October 2020 to December 2021, Page, assisted by Teague, engaged in an investment scheme that defrauded hundreds of investors of more than $4 million. Court documents show that the defendants falsely represented to victims that Page and Teague were operating D&T Investment Group (D&T), a hedge fund in Kings Mountain, N.C., that invested in various securities, including stock of well-known companies like Apple. Contrary to representations made to victim investors, D&T was not a hedge fund and it did not hold any securities licenses or registrations. Also, Page and Teague were not licensed to sell securities and did not have a background associated with the sale of securities.

According to court documents, Page was largely responsible for the “trading” side of the D&T business while Teague was largely responsible for the “back office” side of the D&T business. Both Page and Teague, as well as other D&T employees, were involved in the solicitation of investors. Page and Teague had investors sign, among other documents, an investment contract with D&T. These documents contained false information, including that D&T would guarantee 100% of the investors’ initial investment, and that investors would receive 70% of the trading profits. In reality, the investors’ money was not guaranteed, and the purported profits investors received were Ponzi-style payments, whereby the defendants used new investors’ money to make payments to existing investors. To cover up the fraud, Page caused Teague to send victim investors monthly statements that reflected fictitious trading gains, which Page had falsely reported to Teague. When certain investors and D&T employees, including Teague, began to question the legitimacy of D&T’s operations, Page created fictitious screenshots of various financial accounts that reflected inflated D&T account balances.

In addition to using a portion of the funds to make Ponzi payments, the defendants spent a significant portion of the investors’ money to pay excessive salaries and other compensation to D&T employees, including to members of Page’s family. Page also used victims’ money to pay for personal expenses such as clothing, jewelry, travel, luxury car rentals, and entertainment.

On December 2, 2021, as the fraudulent scheme was collapsing, the defendants traveled to Italy. On the same day, Page informed D&T employees, who did not know that D&T was a fraud, that they would be closing the company. The defendants were arrested on New Year’s Eve at JFK Airport in New York upon their voluntary return to the United States.

On April 20, 2022, Page pleaded guilty to wire fraud and Teague to securities fraud. They are currently released on bond and will be ordered to report to the federal Bureau of Prisons to begin serving their prison sentences upon designation of a federal facility.

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

Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

CHARLOTTE, N.C. – Zahari Serdarevic, 22, of Charlotte, was sentenced to 18 months in prison today for the possession and transfer of a machinegun and a machinegun conversion device, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Serdarevic was also ordered to serve three years under court supervision after he is released from prison.

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

According to filed court documents and statements made in court, on October 5, 2021, Serdarevic illegally possessed and transferred a machinegun, which he sold to a confidential informant (CI) working with law enforcement. During the transfer, Serdarevic explained to the CI that the machinegun was fully automatic and cautioned the CI that the machinegun was illegal to possess. According to court documents, on November 4, 2021, Serdarevic sold the CI an illegal conversion device, commonly referred to as a “Glock switch,” which enables a semi-automatic handgun to function as an automatic. Federal law prohibits the possession of machineguns and defines “machinegun” to include parts designed or intended for use in converting a weapon into a machinegun.

On June 15, 2022, Serdarevic pleaded guilty to two counts of possession and transfer of a machinegun. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

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

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

CHARLOTTE, N.C. – The administrator of an online group chat dedicated to the trafficking of child pornography has been sentenced to 22 years in prison, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Dakota Ray Maddy, 33, of Lenoir, N.C., will also be placed under a lifetime of supervised release after he is released from prison and will be required to register as a sex offender.

Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.

“As the overseer of this vile group chat that existed for the sole purpose of trading videos and images depicting the sexual abuse of children, Maddy played an integral role in perpetuating the sexual exploitation of children online. I commend the FBI agents and federal prosecutors who worked together to bring this monster to justice,” said U.S. Attorney King.

According to filed documents and court proceedings, in June 2019, an FBI agent working in an undercover capacity accessed an online group chat dedicated to trading child pornography. Over the course of the investigation, the FBI identified Maddy as the group’s administrator. As the administrator, court documents show that Maddy was in charge of adding and deleting members from the group chat and required members to actively share child pornography or they would be removed. In addition to his administrative duties, Maddy shared child pornography in the group chat, and posted requests for others to send him child pornography. Forensic review of these files established that Maddy distributed a substantial amount of child pornography.

On June 14, 2022, Maddy pleaded guilty to advertising videos and images of children being sexually abused. 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 commended the FBI for their investigation of the case.

Assistant U.S. Attorney Mark T. Odulio 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. – Two criminal indictments were unsealed in federal court today following the arrest of a U.S. Postal Carrier and a co-conspirator for their involvement in an extensive mail theft scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

Kiara Padgett, 28, of Waxhaw, N.C., is charged with one count of bank fraud conspiracy and 10 counts of mail theft by a postal employee. A separate indictment charges Terrell Alexander Hager Jr., 23, of Charlotte, with one count of bank fraud conspiracy and seven counts of possession of stolen mail.

According to allegations contained in Padgett’s indictment, Padgett was employed by the U.S. Postal Service as a mail carrier with a postal route in West Charlotte. From August 2021 to November 2022, Padgett allegedly used her position as a postal carrier to steal incoming and outgoing checks of businesses and individuals, which she then sold to other individuals located in Charlotte and Maryland. The indictment alleges that the total face value of the checks Padgett stole was more than $8.3 million. The indictment further alleges that between August 2021 and June 2022, Padgett received payments for her role in the scheme totaling at least $13,698.

The indictment filed against Hager alleges that, between August 2021 and November 2022, Hager and his co-conspirators obtained stolen checks from Padgett. The co-conspirators allegedly deposited the stolen checks into bank accounts Hager and others controlled, and then made cash withdrawals before the financial institutions detected the fraud. Over the course of the scheme, Hager and his co-conspirators allegedly deposited more than $27,000 in stolen checks and money orders. Hager also allegedly posted online for sale over 400 stolen checks totaling over $7.3 million. The checks posted by Hager were allegedly stolen from Padgett’s postal route in West Charlotte. According to today’s court proceedings, Hager was on probation with the state of North Carolina when he committed the fraud.

Padgett was released on bond following her court hearing. If convicted, Padgett faces a maximum prison term of 30 years and a $1 million fine for the bank fraud conspiracy charge, and five years in prison and a $250,000 fine for each of the 10 counts of theft of mail by a postal employee.

Hager remains in federal custody. If convicted, he is facing a maximum prison term of 30 years and a $1 million fine for the charge of conspiracy to commit bank fraud, and five years in prison and a $250,000 fine for each of the seven charges of possession of stolen mail.

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

The USPIS, USPS-OIG, and CMPD investigated the case. The prosecution is being handled by Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.

 

CHARLOTTE, N.C. – An indictment was unsealed today in federal court charging Wynn A.D. Charlebois, 52, of Charlotte, with wire fraud and money laundering in connection with a multi-million dollar investment fraud scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Charlebois had his initial court appearance this morning after he surrendered to the FBI.

Michael C. Scherck, Acting Special Agent in Charge of the FBI’s Charlotte Division, 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 allegations contained in the indictment, 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 fraudulent 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. According to allegations in the indictment, 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 Charlebois’s claims, instead of using the investors’ money as promised, Charlebois allegedly used the funds to make Ponzi-style payments to other investors, and on personal expenses including private school tuition, mortgage payments, luxury travel and meals at restaurants.

Charlebois was released on bond following his court appearance. He faces a maximum of 20 years in prison and a $250,000 fine for the wire fraud charge, and 10 years in prison and a $250,000 fine for each of the six money laundering counts, if convicted.

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

The FBI and USPIS investigated the case. The prosecution is being handled by Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.

CHARLOTTE, N.C. – A federal jury in Charlotte has convicted Michael Mandel Baldwin, 53, of Alexandria, Virginia, for orchestrating an investment scheme that defrauded victims of more than $800,000, 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, joins U.S. Attorney King in making today’s announcement.

“Baldwin’s Miracle Mansion was a house of lies,” said U.S. Attorney King in announcing the guilty verdict. “Using Biblical themes and empty promises to cover up the fraud, Baldwin engaged in an extensive scheme that caused significant monetary losses to his victims. My office is committed to uncovering investment fraud and ensuring that perpetrators like Baldwin face the criminal justice system.”

According to trial evidence and witness testimony, from 2009 to October 2021, Baldwin served as an Assistant Pastor and Musical Director for a church in Northern Virginia, and Chief Executive Officer of the Miracle Mansion, LLC (Miracle Mansion). As evidence established, over the course of the scheme, Baldwin made numerous fraudulent representations to victim-investors about the viability, legitimacy, and success of Miracle Mansion, and solicited investments from a Charlotte-area church and its members, as well as individuals and entities located throughout the United States, including in Virginia, Arkansas, Florida, and Georgia.

According to evidence presented at trial, as part of the fraudulent investment scheme, Baldwin created and distributed promotional materials to potential investors that described Miracle Mansion as “a one-of-a-kind entertainment complex that [would] reshape the face of family entertainment in the Washington Metropolitan region,” with a mission that “promotes family-focused inspiration, entertainment and enrichment anchored by a Biblical worldview.” In furtherance of the fraud, Baldwin also held in-person and virtual meetings with potential investors, during which he falsely claimed the investors’ money would be used to develop, create and construct Miracle Mansion, including to purchase the land on which Miracle Mansion would be located.

According to witness testimony, in furtherance of the scheme, Baldwin presented to investors several investment opportunities, including “GroundSwell 73,” which was described as “73 acres = 7,300 people, investing $73 per month, for 73 months.” Baldwin also represented to potential investors that The Kennedy Center and high-level executives at Hobby Lobby and Chick-Fil-A had endorsed and supported Miracle Mansion. Contrary to Baldwin’s claims, high-level executives with Hobby Lobby and Chick-Fil-A testified at trial that they neither knew nor supported Baldwin and his project.

Rather than using the victims’ money to create, develop and construct Miracle Mansion as promised, trial evidence established that Baldwin spent hundreds of thousands of dollars on his personal lifestyle, including to pay for personal expenses, travel, and meals at restaurants, and to make credit card payments and cash withdrawals. He also used a portion of the victims’ money to pay others involved in Miracle Mansion, and to make Ponzi style payments to some of the investors.  

The federal jury convicted Baldwin of wire fraud, which carries a maximum prison term of 20 years and a $250,000 fine, and securities fraud, which carries a maximum prison term of 20 years and a $5 million fine. Baldwin is currently released on bond. A sentencing date has not been set.

In making today’s announcement U.S. Attorney King thanked the U.S. Secret Service for leading the investigation.

Assistant U.S. Attorneys Caryn Finley and Kenneth Smith of the U.S. Attorney’s Office in Charlotte are prosecuting the case.

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that a federal grand jury in Charlotte returned an indictment today charging two tax attorneys and an insurance agent with conspiring to defraud the United States and helping clients file false tax returns based on their promotion and operation of a fraudulent tax shelter.

U.S. Attorney King is joined in making today’s announcement by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI).

According to the indictment, from 2011 to the present Michael Elliott Kohn and Catherine Elizabeth Chollet, both attorneys and residents of St. Louis, Missouri, and David Shane Simmons, a licensed insurance agent and broker based out of Jefferson, North Carolina, conspired to defraud the United States by promoting, marketing, and selling to clients a fraudulent tax scheme known as the Gain Elimination Plan (“GEP”). The defendants allegedly designed the GEP to conceal clients’ income from the IRS by fraudulently inflating business expenses through fictitious royalties and management fees. These fictitious royalties and management fees allegedly were paid, on paper, to a limited partnership largely owned by a charitable organization. In reality, Kohn and Chollet allegedly fabricated the royalties and management fees. In total, the defendants allegedly caused a tax loss to the IRS of tens of millions of dollars.

The indictment further alleges that Kohn and Simmons engaged in a scheme to defraud an insurance company by providing false information on insurance applications on behalf of their clients. The false information allegedly included fraudulent representations concerning the clients’ financials and the purpose of the insurance policies. In total, Kohn and Simmons allegedly caused the insurance company to issue more than $200 million in insurance policies based on false application information. Simmons allegedly earned large commissions for selling the insurance policies, many of which he split with Kohn and Chollet. Simmons also allegedly filed false personal tax returns by underreporting his business income and inflating his business expenses.

If convicted, Kohn, Chollet, and Simmons each face a maximum sentence of five years in prison for conspiring to defraud the United States and three years in prison for each of multiple counts of aiding and assisting in the preparation of false tax returns. Kohn and Simmons both also face a maximum sentence of 20 years in prison for wire fraud, and Simmons faces a maximum sentence of three years in prison for several counts of filing false personal tax returns, if convicted. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

IRS-Criminal Investigation is investigating the case.

Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte and Trial Attorneys Kevin Schneider and Todd Ellinwood of the Tax Division are prosecuting the case.

 

ASHEVILLE, N.C. – A federal jury in Asheville has convicted Jorge Luis Perez, 36, of Wimauma, Florida, of drug trafficking and firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger presided over the three-day trial which ended today.

According to court documents, witness testimony and evidence presented at trial, in May 2020, law enforcement conducted a traffic stop of a vehicle Perez was driving in Jackson County, North Carolina. Over the course of the traffic stop, law enforcement located a trafficking quantity of methamphetamine and a loaded firearm in the vehicle. Law enforcement also found more than $10,000 in cash on Perez’s person. Trial evidence further established that, in July 2020, law enforcement conducted another traffic stop of a vehicle Perez was driving in Swain County, North Carolina. Over the course of that traffic stop, law enforcement located an even larger trafficking quantity of methamphetamine and set of digital scales in the vehicle. A search of Perez’s trailer later that day led to the seizure of additional evidence to include methamphetamine, multiple firearms, and a money counter.

A federal jury convicted Perez of two counts of possession with intent to distribute methamphetamine – one carrying a statutory maximum penalty of 20 years in prison and one carrying a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison; and possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory minimum penalty of five years in prison. Perez remains in custody. A sentencing date has not been set.

This effort 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, the Jackson County Sheriff’s Office, the Swain County Sheriff’s Office, and the Hillsborough County Sheriff’s Office in Florida for their coordination and investigation of the case.

Assistant United States Attorney Thomas Kent and Special Assistant U.S. Attorney (SAUSA) Annabelle Chambers, of the U.S. Attorney’s Office are prosecuting the case. Ms. Chambers is a state prosecutor with the office of the 43rd Prosecutorial District and was assigned by District Attorney Ashley Welch to serve as SAUSA with the U.S. Attorney’s Office in Asheville.  Ms. Chambers is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 43rd Prosecutorial District and the United States Attorney’s Office.  The SAUSA position helps ensure the effective and vigorous prosecution of federal court cases that impact the counties within the 43rd Prosecutorial District. 

CHARLOTTE, N.C. – Jonathan Corey Daniel, 33, of Monroe, Georgia, was sentenced today by U.S. District Judge Kenneth D. Bell to 210 months in prison and five years of supervised release for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In July 2021, Daniel pleaded guilty to methamphetamine trafficking conspiracy and possession with intent to distribute methamphetamine and aiding and abetting.

According to filed court documents and statements made in court, Daniel was a supplier with a drug ring that trafficked methamphetamine from Georgia into Western North Carolina. From 2018 to April 2019, while Daniel was incarcerated in Georgia, he arranged the distribution of large amounts of methamphetamine to a drug network that distributed methamphetamine in Catawba, Lincoln, Caldwell, and Alexander Counties and elsewhere. Court records show that Daniel used a contraband cell phone to communicate with his co-conspirators and to coordinate the drug distribution. Over the course of the investigation, law enforcement seized narcotics, at least 23 firearms, and more than $250,000 in drug proceeds.

Thirteen defendants were previously sentenced for their involvement: 

• Michael James Notheisen, 36, of Vale, N.C., was sentenced to 240 months in prison and five years of supervised release.
• James Kristoffer Cantley, 40, of Newton, N.C. was sentenced to 210 months in prison and five years of supervised release.
• Tiffany Christmas Hirani, 35, of Monroe, Georgia, was sentenced to 210 months in prison and five years of supervised release.
• Aaron Douglas Goodson, 32, of Lincolnton, N.C., was sentenced to 210 months in prison and five years of supervised release. 
• Brian Duane Martz, 43, was sentenced to 191 months in prison and five years of supervised release.
• Priscilla Chapman Lambert, 36, of Hickory, N.C., was sentenced to 151 months in prison and five years of supervised release.  
• Thomas Dewayne Simmons, Jr., 36, of Monroe, Georgia, was sentenced to 150 months in prison and five years of supervised release.
• Ruth Marie Duggar, 39, of Claremont, N.C., was sentenced to 132 months in prison and five years of supervised release.
• Lowell Thomas Messer, 45, of Newton, N.C., was sentenced to 120 months in prison and five years of supervised release.
• Samantha Jean Taylor, 27, of Newton, N.C., was sentenced to 120 months in prison and five years of supervised release.
• Kimberly Deann Bumgarner, 58, of Granite Falls, N.C., was sentenced to 60 months in prison and two years of supervised release. 
• Cynthia Roxanne Shook, 37, of Conover, N.C., was sentenced to 60 months in prison and two years of supervised release.
• Jason Keith Reichard, 40, of Ridgecrest, N.C., was sentenced to 36 months in prison and three years of supervised release.  
   

In making today’s announcement U.S. Attorney King thanked the following agencies for their investigative efforts which led to federal charges: the DEA in Charlotte, Asheville, and Atlanta; the North Carolina State Bureau of Investigation; the North Carolina State Highway Patrol; the Catawba County Sheriff’s Office; the Newton Police Department; the Conover Police Department; the Maiden Police Department; the Hickory Police Department; the Longview Police Department; the Caldwell County Sheriff’s Office; the Granite Falls Police Department; the Lincoln County Sheriff’s Office; the Cleveland County Sheriff’s Office; the Huntersville Police Department; the Cornelius Police Department; the Mint Hill Police Department; the Pineville Police Department; the Charlotte Mecklenburg Police Department; the Monroe Police Department; the Taylorsville Police Department; the Gaston County Police Department; the Georgia Highway Patrol; the Franklin County Sheriff’s Office in Georgia; the Georgia Bureau of Investigation; the Georgia Department of Corrections; the Clayton County Sheriff’s Office in Georgia; and the Commerce Police Department in Georgia.

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

CHARLOTTE, N.C. – Gustavo Guzman, 59, previously of Fullerton, Calif., made his initial appearance in federal court in Charlotte today following his extradition from Australia, to face wire fraud, securities fraud and transactional money laundering charges related to an alleged $2 million investment fraud scheme, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and North Carolina Secretary of State Elaine F. Marshall join U.S. Attorney King in making the announcement.

According to allegations contained in the indictment, from April 2010 to August 2015, Guzman, through various entities he controlled, including G2 Asset Management and East Egg Private Equity, executed a scheme to defraud 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 allegedly 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. As alleged in the indictment, 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 investors. To conceal the trading losses and the fraudulent scheme, and to prevent his victims from redeeming their investments and complaining to authorities, the indictment alleges that Guzman 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 is currently in federal custody. The wire fraud charge carries a sentence of up to 20 years in prison and a $250,000 fine. The securities fraud charge carries a statutory sentence of up to 20 years in prison and a $5 million fine, and the transactional money laundering charge carries a penalty of up to 10 years in prison and a fine of up to $250,000 or not more than twice the amount of the criminally derived property involved in the transaction. 

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

The investigation was conducted by the FBI in Charlotte and the Securities Division of the North Carolina Department of the Secretary of State. 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). The Department of Justice also appreciates the significant assistance provided by the United States Marshals Service, the Justice Department’s Office of International Affairs, the Government of Australia, including the Attorney General’s Department of Australia and the Australian Federal Police, in securing the extradition of Guzman and 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. – Donna Osowitt Steele, 53, of Taylorsville, N.C., was sentenced today to eight years in prison for embezzling more than $15 million from her former employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also ordered Steele to serve three years under court supervision after she completes her prison term and to pay $17,189.748.26 in restitution. Steele previously pleaded guilty to wire fraud in connection with the scheme.

Michael C. Scherck, Acting 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 court documents and today’s sentencing hearing, from 2013 to January 2020, Steele executed an extensive scheme to defraud her employer, identified in court documents as Victim Company A, a privately held U.S.-based subsidiary of a foreign company that manufactures carbide products. Steele began working for Victim Company A’s shipping department in 1999. Over the next 20 years, Steele was promoted to various positions within the company, including to the position of Chief Executive Officer (CEO), which she held until she was terminated in January 2020.

Court records show that, while serving as Vice President and later as CEO, Steele used her positions to embezzle funds from Victim Company A in a number of ways, including through fraudulent company credit card purchases, company checks, Quickbooks transactions, and wire transfers. For example, Steele used company credit cards to pay for $6 million in personal expenditures, including to make high-end retail store purchases, to pay for a family wedding, and to make purchases related to Opulence by Steele, a luxury clothing and boutique company owned by the defendant. Steele also issued and caused to be issued to herself approximately 98 checks totaling more than $2.8 million from Victim Company A’s bank accounts, which Steele deposited into her personal bank account. Furthermore, Steele caused 127 fraudulent and unauthorized wire transfers to be executed as Quickbooks transactions, transferring more than $4.7 million from Victim Company A’s bank accounts to her personal bank account. During the same time period, Steele executed at least 117 fraudulent and unauthorized bank wires, totaling more than $2.2 million, from Victim Company A’s bank accounts to her personal bank account, which she then used for her personal benefit, including to fund a personal real estate closing.

According to court documents, over the course of the scheme, Steele embezzled more than $15 million from Victim Company A. As a result of Steele’s embezzlement, Victim Company A experienced several difficulties, including vendors withholding products from the company for non-payment or late payments, employees not being paid on time, and/or employees having their insurance cancelled without warning. Court records show that, in an effort to hide the fraudulent scheme, Steele limited communications and interactions between the employees and the owners of Victim Company A. Steele also convinced employees that company owners should be feared and lied to employees about the true nature of Victim Company A’s financial trouble.

On January 12, 2022, Steele pleaded guilty to wire fraud. She is currently released on bond and 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 the FBI for their investigation of the case.

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

CHARLOTTE, N.C. – A Charlotte man who robbed three businesses was sentenced to 120 months in prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Kenneth D. Bell also ordered John Paul Gaddy, 35, to serve three years of supervised release after he is released from prison.

Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Chief Bence Hoyle of the Huntersville Police Department, and Chief Josh Watson of the Troutman Police Department join U.S. Attorney King in making today’s announcement.

According to court documents and today’s sentencing hearing, between March and April 2021, Gaddy used a BB gun to rob three businesses. On March 12, 2021, Gaddy robbed the Lucia Food Mart located at 104 Killian Road in Stanley, North Carolina, followed by another robbery on April 25, 2021, of the Fast Phil’s convenience store located at 502 Gilead Road in Huntersville, North Carolina. Court records show that, during the second robbery, Gaddy pointed a BB gun at the clerk, giving her the impression that it was real gun, ordered the clerk to back up, and then grabbed cash from the register. The third robbery occurred three days later, on April 28, 2021. According to court records, Gaddy entered a Dollar Tree store located at 611 N. Main St. in Troutman, North Carolina. As with the previous robbery, Gaddy pointed the BB gun at the clerk, who thought it was a real gun, and said, “If you don’t put all of your money in the bag, I’m going to kill you.” As the clerk attempted to escape, Gaddy grabbed the entire cash register drawer and left the store.

On May 4, 2021, a Charlotte Mecklenburg Police Department (CMPD) officer conducted a traffic stop of a vehicle in which Gaddy was the passenger. Over the course of the traffic stop, Gaddy resisted arrest and fought with CMPD officers before he was detained.

On June 7, 2022, Gaddy pleaded guilty to Hobbs Act robbery. He 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 FBI, the Huntersville Police Department, and the Troutman Police Department for their investigation of the case, and thanked CMPD for their invaluable assistance.

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

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Marvin Maurice Williams, 54, of Raleigh, North Carolina, to 151 months in prison followed by three years of supervised release for an armed robbery offense, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Bence Hoyle of the Huntersville Police Department join U.S. Attorney King in making today’s announcement.

According to filed documents and statements made in court, on September 7, 2021, at approximately 8:00 a.m., Williams entered the Valero gas station located at 502 Gilead Road in Huntersville, N.C. Upon entering, Williams approached the cashier and asked to buy cigarettes. When the cashier turned around Williams brandished a firearm. Court records show that, while brandishing the firearm, Williams went behind the counter, grabbed the cashier by her shirt collar and forced her to the back office. Williams then ordered the cashier to hand over the store’s cash. When the cashier replied that the money was located at the front of the store in a deposit bag, Williams forced the cashier back to the front of the gas station. The defendant then grabbed the deposit bag and fled the scene in his vehicle. According to court documents, the cashier and another individual who observed the robbery in progress called 911 to report the incident. Officers located Williams’s vehicle and he was arrested shortly thereafter. Over the course of the arrest, law enforcement also located the firearm Williams had brandished during the robbery on the vehicle’s front passenger seat.

On March 1, 2022, Williams pleaded guilty to Hobbs Act robbery. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prison upon designation of a federal facility.

The FBI and the Huntersville Police Department investigated the case.

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

STATESVILLE, N.C. – A federal grand jury sitting in Statesville has convicted Spenc’r Denard Rickerson, 35, of Claremont, N.C., of bank robbery, wire fraud, and aggravated identity theft, 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 today.

U.S. Attorney King is joined in making today’s announcement by Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division.

According to court documents, witness testimony and evidence presented at 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 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. According to trial evidence, as a result of the fraudulent PPP and EIDL loan applications, Rickerson allegedly received over $84,233 in fraudulent funds intended to assist businesses impacted by the coronavirus pandemic.

According to evidence presented at trial, in addition to the fraudulent loan scheme, on March 18, 2021, Rickerson committed an armed robbery of a BB&T Bank 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 remains free on bond. The maximum statutory penalty for the bank robbery offense is 25 years in prison and a $250,000 fine. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The aggravated identity theft charge carries a mandatory two-year prison term consecutive to any other prison term imposed. A sentencing date has not been set.

The FBI in Charlotte investigated the case. Assistant U.S. Attorneys Lambert Guinn and Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.

To report suspected COVID-19 fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint at https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed by the NCDF and referred to federal, state, local or international law enforcement or regulatory agencies for investigation. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.

 

 

CHARLOTTE, N.C. – Today, U.S. Attorney Dena J. King hosted the Western District’s Excellence in the Pursuit of Justice award ceremony, to recognize law enforcement personnel from local, state and

federal law enforcement agencies for their significant contributions to the mission of the Department of Justice, and for their commitment to protecting the people of the Western District of North Carolina.

“It is an honor to recognize the remarkable men and women in law enforcement for going above and beyond the call of duty to protect our communities and to hold wrongdoers accountable for their actions,” said U.S. Attorney King. “A career in law enforcement is not for the faint of heart. Those who wear the badge understand what it means to live a life of service, despite the significant dangers and challenges that come with the job. I congratulate the recipients for this well-deserved recognition. I am grateful for their outstanding efforts to ensure public safety and for serving the people of the Western District of North Carolina with integrity and excellence.”

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

United States v. Rodney Allison ­

Johnathan R. Austin - Buncombe County Sheriff’s Office/DEA

Nathan Ball – Buncombe County Sheriff’s Office

Michael W.C. Beam – DEA

Melody J. Cox – HIDTA/DEA

Sonia Escobedo – Asheville Police Department/DEA

Andrew N. Fournier – Asheville Police Department

Brett L. Foust – Asheville Police Department

Steven Hendricks – Asheville Police Department

Brett T. Maltby - Asheville Police Department

Christopher M. Plowucha – Buncombe County Sheriff’s Office

Organized Crime Drug Enforcement Task Force (OCDETF) Operation “COVID CHAOS” 

Nathan DeWeese – Haywood County Sheriff’s Office

Christopher B. Green – ATF

Brian A. Leopard – Swain County Sheriff’s Office/DEA

Mark Mease – Haywood County Sheriff’s Office

Micah P. Phillips – Haywood County Sheriff’s Office/ATF

Michael J. Reagan – Haywood County Sheriff’s Office/DEA

Andrew G. Scripture – DEA

Jay Stoller – Haywood County Sheriff’s Office

Alan C. Townsend – ATF

United States v. Shane Swimmer

Travis Brooks – Cherokee Indian Police Department

Daniel S. Iadonisi - Cherokee Indian Police Department

Mary Lambert – Cherokee Indian Police Department

Eugene J. Vinson – FBI

United States v. Michael Moore

Alvis E. Bergs –HSI

Andrew J. Greer - HSI

Illegal Firearms Interdiction

Seth M. Berger – ATF

Andrew J. Collier – Federal Air Marshal Service

Kelly M. Harrison – HSI

Christopher C. McMaster – FBI

United States v. Elijah Gorla

Jacob R. Guffey – FBI

William S. Hairston, Jr. – ATF

Rebecca T. Russell – Watauga County Sheriff’s Office

The following law enforcement professionals were recognized in the Outstanding Team Performance category:

Queen City Regional Border Enforcement Security Taskforce – “QCR-BEST”

Ronald Bollinger – North Carolina Department of Public Safety/HSI

Stephen Brown – Charlotte Mecklenburg Police Department/HSI

Kirk Bynoe - Charlotte Mecklenburg Police Department/HSI

Jonathan Cerdan - Charlotte Mecklenburg Police Department/HSI

Daniel Johnson – Huntersville Police Department/HSI

Kyle Lang – Mint Hill Police Department/HSI

Daniel S. Leal – HSI

Michael E. Morizio – HSI

Kevin Osuch – Matthews Police Department/HSI

Courtney Roanhorse – HSI

Josh Smith – Stallings Police Department/HSI

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

Randy Berkland – United States Postal Inspection Service 

Zackery T. Hagler – Charlotte Mecklenburg Police Department/FBI

Christopher P. Morgan – DEA

Jason D. Whitt – FBI

This year, the U.S. Attorney’s Office recognized Mr. Holrick L. Foster with the Outstanding Citizen Award for his contribution in a case prosecuted by the U.S. Attorney’s Office, and presented Adams Outdoor Advertising with the Outstanding Community Service award for partnering with the U.S. Attorney’s Office to promote the Office’s Think Again initiative.

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

 

CHARLOTTE, N.C. – Edin Anael Solis-Rodriguez, 23, a Honduran national residing in Charlotte, was sentenced to 15 in prison late yesterday, followed by three years of supervised release, for possession of two firearms by an illegal alien, 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 records and court proceedings, on August 28, 2020, CMPD officers responded to a call for service at a restaurant located on South Boulevard in Charlotte. Officers were told that restaurant employees had observed a male customer with a firearm in the back of this pants. CMPD officers found the customer, Solis-Rodriguez, at the bar and confirmed that he had a loaded firearm.

According to filed court documents, on the night of November 14, 2021, CMPD officers were dispatched to the Taco Bar restaurant, located at 6400 Old Pineville Road in Charlotte, in reference to a shooting. When CMPD officers arrived at the scene, they observed a male victim on the ground that had sustained multiple gunshot wounds. Over the course of the investigation, law enforcement determined that Solis-Rodriguez shot the victim. Law enforcement executed a search warrant at Solis-Rodriguez’s residence and found the firearm that Solis-Rodriguez used to shoot the victim.

On June 7, 2022, Solis-Rodriguez pleaded guilty to two counts of possession of a firearm by an illegal alien. Solis-Rodriguez has a prior criminal history for illegally entering the United States and he is not permitted to possess firearms or ammunition.

Solis-Rodriguez is currently in 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 ATF and CMPD for their investigation of the case.

Assistant U.S. Attorney Stephanie Spaugh, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

CHARLOTTE, N.C. – Amir Salvatore Khayyat, 29, of Charlotte, was sentenced today to 30 months in prison followed by three years of supervised release for cyberstalking and sending his victim harassing and threatening emails and voicemails, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Michael C. Scherck, Acting Special Agent in Charge of the FBI in North Carolina, joins U.S. Attorney King in making today’s announcement.

According to filed court documents and the sentencing hearing, in 2017, Khayyat met the victim, identified in court documents as “Jane Doe.” Jane Doe is a licensed clinical psychologist and a credentialed mental health service provider, who met Khayyat in her professional capacity. Court records show that, from April 2019 to October 2020, Khayyat engaged in an extensive cyberstalking and threats campaign targeting Jane Doe, sending the victim hundreds of harassing emails, including unsolicited sexual imagery, from multiple email addresses, and left numerous harassing voicemails on Jane Doe’s office phone line. Many of the harassing emails and voicemails contained express or implicit threats to harm Jane Doe and law enforcement officers. Khayyat continued to harass and threaten Jane Doe even after she obtained a state court order forbidding Khayyat from communicating with her.

On May 23, 2022, Khayyat pleaded guilty to cyberstalking and making interstate threats. 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 FBI for their investigation of the case and the Charlotte-Mecklenburg Police Department for their invaluable assistance.

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