Western District of North Carolina

CHARLOTTE, N.C. – A convicted felon was sentenced to 151 months in prison today for selling firearms without a license and illegal gun possession, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Anthony Dewayne Daye, 38, of Statesville, N.C., was also ordered to serve three years of supervised release.

Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Chief Thurman Whisnant of the Hickory Police Department, and Chief David W. Onley of the Statesville Police Department, join U.S. Attorney King in making today’s announcement.

According to court documents and today’s sentencing hearing, between October 2020 and February 2021, Daye sold illegally in and around Statesville more than 20 firearms and ammunition, including rifles, handguns, “ghost guns,” and semiautomatic firearms capable of accepting a large capacity magazine, and aided and abetted in the sale of additional illegal firearms. Court records show that some of the firearms Daye sold had been reported stolen. Daye is not a licensed firearms dealer and he is prohibited from possessing firearms or ammunition due to his multiple prior criminal convictions.

On November 19, 2021, Daye pleaded guilty to dealing in firearms without a license and aiding and abetting and being a convicted felon in possession of firearms.

Daye is currently in federal custody and will be transferred to 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, the Hickory Police Department, and the Statesville Police Department for their investigation of this case.

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

CHARLOTTE, N.C. – A crime reduction operation in North Carolina and South Carolina has resulted in the apprehension of more than 91 individuals on charges of homicide, aggravated assault, sexual assault, robbery, kidnapping, child abuse, child sexual assault, drug distribution and gun crimes.

The enforcement operation announced today took place between July 5, 2022, and July 15, 2022, in Gaston County in North Carolina and York County in South Carolina, with special emphasis placed on communities within Gastonia, N.C. and Rock Hill, S.C.

Led by the U.S. Marshals Service, “Operation Washout” is a violent crime reduction initiative that brings together federal, state and local law enforcement, and focuses on improving safety in local communities by identifying and removing fugitives, violent criminals, self-identified gang members, sex offenders, drug traffickers, and parole violators.

“Criminal activity impacts the well-being of our communities,” said Dena J. King, U.S. Attorney for the Western District of North Carolina. “I commend the law enforcement agencies that took part in this crime reduction initiative. As we work together to build stronger relationships with our communities, we must hold accountable those who continue to spread violence and pose a threat to our citizens’ safety.”

“Our commitment to strengthen, protect and safeguard our communities is showcased by the collaborative effort of all the agencies involved in this operation,” said Chris Edge, Acting U.S. Marshal of the U.S. Marshals Service in the Western District of North Carolina. “It also serves as a somber reminder that if you commit a crime and think by fleeing the county or state the United States Marshals Service will find you, wherever you hide.”

Partnering agencies included the U.S. Marshals Service in North Carolina and South Carolina and the U.S. Marshals Service’s Carolinas Regional Fugitive Task Force, the Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF), the Drug Enforcement Administration (DEA), the U.S. Attorney’s Office for the Western District of North Carolina, the U.S. Attorney’s Office for the District of South Carolina, the U.S. Probation Office for the Western District of North Carolina, the North Carolina State Bureau of Investigation, the North Carolina State Highway Patrol, the South Carolina Highway Patrol, the North Carolina Department of Public Safety, the Gaston County Police Department, the City of Gastonia Police Department, the Gaston County Sheriff’s Office, the Gaston County District Attorney’s Office, the Rock Hill Police Department, the York County Sheriff’s Office, and the York County Solicitor’s Office.

A North Carolina man pleaded guilty today to tax evasion.

According to court documents, Darren Lee Joy, 63, of Matthews, admitted to evading his 2015 individual income taxes by submitting to his employer an IRS Form W-4 falsely stating he was exempt from federal income-tax withholding. He also did not file a 2015 tax return, even though he was legally required to do so based on the amount of income he earned.

Joy will be sentenced at a later date to be determined by the district court. He faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dena J. King for the Western District of North Carolina made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorney Brian Flanagan of the Tax Division and Assistant U.S. Attorney Caryn Finley of the Western District of North Carolina are prosecuting the case.

CHARLOTTE, N.C.  – A North Carolina man pleaded guilty today to tax evasion.

According to court documents, Darren Lee Joy, 63, of Matthews, admitted to evading his 2015 individual income taxes by submitting to his employer an IRS Form W-4 falsely stating he was exempt from federal income tax withholding. He also did not file a 2015 tax return, even though he was legally required to do so based on the amount of income he earned.

Joy will be sentenced at a later date to be determined by the district court. He faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dena J. King for the Western District of North Carolina made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorney Brian Flanagan of the Tax Division and Assistant U.S. Attorney Caryn Finley of the Western District of North Carolina are prosecuting the case.

CHARLOTTE, N.C. – Jango Omar Touray, 27, of Charlotte, was sentenced today to 14 years in prison for stealing a Maserati and robbing a pawn shop at gunpoint, 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 Robert J. Conrad Jr. also ordered Touray to serve three years of supervised release.

Robert R. Wells, 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 court documents, admissions made in connection with Touray’s guilty plea, and information introduced at sentencing, on February 8, 2019, Touray robbed Gulf Export, a car dealership located at 3330 North Tryon Street, in Charlotte. Court records show that, Touray entered the car dealership while carrying what appeared to be a long gun wrapped in a white towel and ordered individuals inside to get on the ground. Touray then ordered an employee to hand him the keys to a Maserati Grand Tourismo. The employee complied, and Touray fled the dealership in the stolen vehicle. Touray received a sentencing enhancement for committing a robbery involving carjacking for this offense.

According to court records, three days later, on February 11, 2019, Touray robbed the Cash America Pawn business, located at 4635 North Tryon Street, in Charlotte. During the robbery, Touray, who was armed with a firearm, ordered the business manager to open the store’s jewelry display cases and ordered other employees to hand him the keys to the cash registers. Touray fled the scene in the stolen Maserati with the store’s cash and jewelry. Court records show that CMPD officers located Touray driving the stolen vehicle and proceeded to follow him. Touray was apprehended after he crashed the Maserati and attempted to flee on foot. Law enforcement recovered from inside the vehicle the firearm Touray used during the pawn shop robbery and some of the stolen cash and jewelry.

On November 26, 2019, Touray pleaded guilty to two counts of Hobbs Act Robbery and one count of possession of a firearm in furtherance of a crime of violence. Touray remains in the custody of the United States Marshals Service pending placement by the federal Bureau of Prisons.

The FBI and CMPD conducted the investigation.

Assistant U.S. Attorney William T. Bozin, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

 

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today the launching of Think Again, an informational campaign aimed at educating the public on how to prevent illegal firearms from getting into the wrong hands.

The U.S. Attorney’s Office for the Western District of North Carolina partnered with the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) in this initiative, as part of a joint effort to reduce gun-induced violence and to increase reporting of illegal firearms activity.

“The fight against gun violence requires the coordination of law enforcement agencies. More importantly, our success relies on the help of the community. With this campaign, we invite the public to be a part of the solution to gun violence,” said U.S. Attorney King. “Our message is simple. We ask everyone to Think Again, before you agree to be a straw gun purchaser for a person who is not permitted to own a firearm. To Think Again, before you make a decision that could lead to an illegal firearm ending up in our streets. And to Think Again, before you ignore illegal gun activity. Instead, report it to the authorities. Let’s work together and let’s be the cure to the gun violence epidemic.”

“Each and every person plays a critical role in protecting their neighborhoods and preventing crime, and when we make the right decision and push back against those involved in committing crimes, we help make a much safer community,” said ATF Special Agent in Charge Bennie Mims. “Before you break the law, before you help put a firearm in the hands of a dangerous individual, or before you make a choice that could put yourself or those around you in danger, we want you to Think Again and consider the consequences.”

The Think Again campaign combines a multi-media dissemination of information, to include 30-second radio spots, Public Service Announcements, promoted social media messaging, and billboard advertisements designed to increase awareness about gun crimes and underscore the dangers of illegal firearms purchasing or misuse. The information will also be shared with certain school districts within Western North Carolina in an effort to engage in outreach with students, guardians, teachers, and school administrators. Furthermore, information on how to spot illegal gun purchases and other important information related to straw purchasing of firearms will be disseminated to Federal Firearms Licensees (FFLs) in Western North Carolina via ATF’s notification system.

An important component of the campaign is the anonymous reporting of gun-related criminal activity. The campaign enourages the public to get involved by reporting illegal firearms to the ATF by calling 1-888-ATF-TIPS (1-888-283-8477), via text at 63975, or online at WWW.ATF.GOV/ATF-TIPS.

For additional information about our Think Again initiative, please visit our website. You can view our Think Again Public Service Announcements here.

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Andres Chacon, 46, of Anderson, South Carolina, was sentenced to 194 months in prison and five years of supervised release for drug trafficking.

According to filed documents and court proceedings, on March 5, 2019, Chacon sold two kilograms of high-purity methamphetamine to an undercover investigator in Union County. In sentencing Chacon, the Court considered the defendant’s prior convictions for Unlawful Carry of Weapon and Possession of Cocaine with Intent to Distribute in South Carolina State court in 2009, after which he absconded from court supervision. In 2014, Chacon was also convicted of conspiracy to distribute methamphetamine in South Carolina federal court, after which he also absconded from court supervision and was later caught with two kilograms of heroin and $90,000 in cash.

This case is the result of Organized Crime Drug Enforcement Task Force (OCDETF) operation which has led to the seizure of 18+ kilograms of crystal methamphetamine and over one kilogram of cocaine.  OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, Homeland Security Investigations, the Charlotte-Mecklenburg Police Department, Mint Hill Police Department, Monroe Police Department, Pineville Police Department, Cornelius Police Department, and Catawba County Sheriff’s Office.

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

 

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Vincent Bernard Leonard, 54, of Charlotte, was sentenced to 188 months in prison and three years of supervised release on charges of attempted armed robbery and illegal firearm possession.

Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings with the Charlotte-Mecklenburg Police Department, join U.S. Attorney King in making today’s announcement.

According to court documents and today’s sentencing hearing, on November 25, 2020, at approximately 6:08 p.m., Leonard walked into the Little Caesars restaurant located at 5009 Beatties Ford Road in Charlotte. Wearing a face covering, Leonard approached the restaurant’s 17-year-old cashier and asked about the price of a pizza. He then pulled out a semi-automatic firearm and pointed it at the cashier. Leonard ordered the victim to “open the register up” and to give him all the money. Court documents show that the cashier told Leonard she could not open the register and was able to run to the back of the store where she alerted her manager of the attempted robbery. Leonard fled the scene.

On the same day, approximately an hour later, Leonard attempted to rob a Wendy’s restaurant located at 6500 Albemarle Road, in Charlotte. According to court records, Leonard approached the drive-through window of the restaurant on foot, where a 16-year-old cashier was working, and asked for change. Leonard then pulled out a gun, pointed it at the cashier and asked the victim “Do you see this?” The victim was able to get away and run to another part of the store while Leonard fled the scene.

Ten minutes after the attempted robberies, CMPD officers were able to locate Leonard at a gas station in Charlotte. When law enforcement arrived, they found Leonard seated inside a car and arrested him at the scene. Law enforcement also found Leonard’s firearm inside a bookbag that was near his feet. Over the course of the investigation, law enforcement determined that the firearm Leonard used during the attempted robberies had been reported stolen earlier the same year in Lincoln County. At the time of the attempted robberies, Leonard was on post-release supervision for a state conviction where he had served a lengthy prison sentence. 

On November 22, 2021, Leonard pleaded guilty to two counts of attempted Hobbs Act robbery and one count of possession of a firearm by a felon. At the time of the attempted robberies, Leonard was a convicted felon and was prohibited from possessing a firearm. Leonard has a lengthy criminal history and has been previously convicted of burglary, kidnapping, and multiple counts of robbery, breaking and entering, and larceny.  He has twice been sentenced as a habitual felon in North Carolina state court.

Leonard is currently in federal custody and will be transferred to 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 this case.

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

 

 

ASHEVILLE, N.C. – Today, U.S. District Judge Max O. Cogburn Jr. sentenced John Paul Cook, 58, of Marshall, N.C. to ten months in prison, five of which the defendant will serve in home confinement, for defrauding the U.S. Department of Veterans Affairs (the VA) by receiving nearly $1 million in veteran benefits based on fraudulent claims of service-connected disabilities, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition, Cook was ordered to serve three years of supervised release and to pay restitution of $930,762.53 to the VA.

Kim Lampkins, Special Agent in Charge of the Mid-Atlantic Field Office, Washington, D.C., of the U.S. Department of Veterans Affairs, Office of Inspector General (VA-OIG), joins U.S. Attorney King in making today’s announcement.

According to court records and today’s sentencing hearing, Cook enlisted in the United States Army (the Army) in November 1985. Six months later Cook sustained an accidental injury while on duty. Following the incident, Cook complained that as a result of the accident and injuries he sustained, a preexisting eye condition had worsened. According to court documents, in 1987, following a medical evaluation, Cook was discharged, placed on the retired list, and began receiving VA disability-based compensation at a rate of 60%. Over the next 30 years, Cook’s disability-based compensation increased, following Cook’s repeated false claims of increased visual impairment and unemployability due to “severe visual deficit.” As Cook previously admitted in court, in 2005, based on his claims of severe visual impairment, the VA declared Cook legally blind and he began receiving disability-based compensation at the maximum rate. Cook also began to receive additional benefits, including Special Monthly Compensation (an extra monetary allowance paid to a qualifying veteran due to the severity of his disability), Specially Adapted Housing (a grant that goes toward paying for adaptations in a new home), and Special Housing Adaptation (a grant that goes toward remodeling an existing home). 

According to court records, Cook’s monthly VA disability payments in 1987 were $1,411 per month. With the incremental increases in his disability rating, as well as cost-of-living adjustments and his Special Monthly Compensation, these payments steadily increased over the years. By 2016, the monthly payment had risen to $3,990.  In total, from 1987 through 2017, Cook received approximately $978,138 in VA disability payments due to his claimed blindness, to which he was not lawfully entitled. 

According to court documents, contrary to Cook’s filed claims with the VA seeking additional disability claims and his complaints of increased visual impairment, Cook repeatedly passed DMV vision screening tests to renew or obtain a driver’s license in North and South Carolina. Furthermore, during the relevant time period, court documents show that Cook purchased and registered over 30 different motor vehicles which Cook routinely drove, including on long-distance trips and to perform errands. Court records further show that, from 2010 to 2016, during a time period that Cook was receiving maximum VA disability benefits for his visual impairment, Cook was actively involved with the Boy Scouts of America (BSA), including serving as a Den Leader and a Cubmaster. Among the courses the defendant completed with the BSA were courses qualifying him to be a range officer for BB guns and for archery. He was also certified for land navigation, which involves reading maps and using a compass. 

On July 19, 2021, Cook pleaded guilty to theft of public money. He will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.

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

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

 

CHARLESTON, S.C. – A federal jury in Charleston has returned a guilty verdict against Brandon Lloyd Daniels, 30, of North Charleston, South Carolina, for the 2018 armed robbery of the Tavern and Table restaurant in Mount Pleasant, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Bruce Howe Hendricks presided over the three-day trial, which ended late yesterday.

Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in South Carolina, and Chief Mark Arnold of the Mount Pleasant Police Department join U.S. Attorney King in making today’s announcement.

“Daniels used a gun to rob a restaurant he previously worked at and, in the process, he shot at his former co-workers, seriously injuring one of them. Today’s guilty verdict holds Daniels accountable for his dangerous and reckless criminal actions and ensures that he can no longer pose a threat to the community,” said U.S. Attorney King, whose office is in charge of the prosecution, upon recusal of the U.S. Attorney’s Office for the District of South Carolina.

“The combined efforts of our local and federal agencies have helped bring a very dangerous individual to justice,” said Special Agent in Charge Mims. “ATF is proud to join our law enforcement partners in addressing gun violence and making communities safer.”

“I would like to thank the ATF and U. S. Attorney’s Office for their collaborative effort to ensure the safety of our citizens,” said Chief Arnold.   

According to filed court documents and evidence presented at trial, on the evening of April 4, 2018, officers with the Mount Pleasant Police Department responded to reports of a robbery and shooting at the Tavern and Table restaurant, located at 100 Church Street in Mount Pleasant. Trial evidence established that around 11:30 p.m., shortly after the restaurant closed for the evening, Daniels entered the restaurant through the back door wearing a face covering and went into the restaurant’s office, where several employees were gathered. Daniels pointed his firearm at the employees and demanded money. According to trial evidence, Daniels aimed his firearm at the restaurant’s assistant manager and shot him in the lower back. The victim sustained serious, permanent injuries from the gunshot. 

Following the shooting, the employees complied with Daniels’ demands and handed him several of the restaurant’s cash drawers. As Daniels fled the scene, he fired two more shots inside the restaurant in the direction of another employee.

The jury convicted Daniels on charges of Hobbs Act robbery, discharging a firearm during and in relation to the robbery, and possessing ammunition while a felon.

This was the second trial in this matter. On October 21, 2021, Judge Hendricks convicted Daniels of possessing a sawed-off shotgun and possessing a firearm while a felon following a bench trial.  These convictions stemmed from investigators’ discovery of a sawed-off shotgun in Daniels’ bedroom during execution of a search warrant in connection with the Tavern and Table robbery.  Daniels was a convicted felon and not permitted to possess a firearm or ammunition.

Daniels remains in custody. A sentencing hearing for both trial convictions will be set at a later date. 

In making today’s announcement, U.S. Attorney King commended the ATF and the Mount Pleasant Police Department for their investigation of the case and thanked the FBI for their substantial assistance.

Assistant U.S. Attorneys Taylor Stout, Regina Pack, and Erik Lindahl, of the U.S. Attorney’s Office for the Western District of North Carolina in Charlotte, are prosecuting the case.

 

 

CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn Jr. sentenced to prison three South Carolina men for a scheme that defrauded Lowe’s of more than $450,000, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

Judge Cogburn ordered Bobby Cherry, 58, of Manning, South Carolina, to serve 41 months in prison and three years of supervised release. Russell Leroy Calvin, 43, of Sumter, South Carolina, was ordered to serve 33 months in prison and three years of supervised release, and Michael Marcel Montgomery, 48, also of Sumter, was sentenced to 27 months in prison, followed by three years of supervised release. In addition to the prison terms imposed, the defendants were ordered to pay more than $450,000 jointly and severally as restitution. All three defendants pleaded guilty to conspiracy to commit wire fraud.

According to filed documents and today’s sentencing hearings, from August 2019 to March 2020, Cherry, Calvin and Montgomery engaged in a conspiracy to defraud Lowe’s stores in the southeastern United States. The defendants and other co-conspirators created business accounts for fraudulent landscaping and home improvement companies at Lowe’s stores, passed fictitious and worthless checks to fund the fraudulent accounts, and then purchased expensive landscaping equipment, such as zero turn mowers, and other items using the account funds. In total, during the course of the scheme, the co-conspirators opened more than 30 such fraudulent business accounts which they used to obtain more than $450,000 in fraudulently purchased goods.  During the scheme, the three defendants made purchases at local stores in Mecklenburg, Gaston, Union, Lincoln, Cleveland, and Iredell Counties in North Carolina, as well as stores in South Carolina and Georgia.

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

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

CHARLOTTE, N.C. – Attorney General Merrick B. Garland announced the recipients for the 69th Annual Attorney General’s Awards yesterday, recognizing Department of Justice employees and partners for their extraordinary contributions to the enforcement of our nation’s laws.

Daniel Ryan, Assistant United States Attorney (AUSA) for the Western District of North Carolina, was among the 298 Justice Department employees and 54 non-department individuals who were honored for their work. AUSA Ryan was part of a team receiving the Attorney General’s Award for Fraud Prevention, which recognizes exceptional dedication and effort to prevent, investigate, and prosecute fraud, white collar crimes, and official corruption.

“This year’s awardees have served selflessly to further the Department’s important work upholding the rule of law, keeping our country safe, and protecting civil rights,” said Attorney General Garland. “I am proud to recognize these individuals for their professionalism, skill, and leadership, and I am grateful for their service to our Department and our nation.”

“AUSA Ryan is a worthy recipient of this prestigious award. As a seasoned federal prosecutor, he is being recognized for his tireless dedication to the pursuit of justice. His contributions to the community, his advocacy on behalf of victims, and his high standards of professional conduct exemplify his commitment to our office’s mission,” said U.S. Attorney King.

AUSA Ryan is the recipient of the award for his legal work in connection with the multi-agency investigation of Wells Fargo’s unlawful sales practices, including the opening of millions of accounts without customer authorization. The dedicated efforts of AUSA Ryan and his colleagues, which resulted in the payment of a $3 billion penalty, ensured that Wells Fargo was held accountable for its conduct and that affected victims were made whole.

This is AUSA Ryan’s second Attorney General Award. In 2015, AUSA Ryan was awarded the Attorney General’s Award for Distinguished Service for his work in connection with the Department of Justice’s record breaking $16.65 billion settlement with Bank of America concerning its origination and securitization of residential mortgages.

AUSA Ryan received his undergraduate degree from the University of Notre Dame and his law degree from Harvard School of Law.

In making today’s announcement, U.S. Attorney King thanked AUSA Ryan for his tireless dedication to fulfilling the Justice Department’s mission and noted that it is an honor and a privilege to recognize him both for his accomplishments and public service.

CHARLOTTE, N.C. – Barry Bryan Edwards, 66, of Hickory, N.C., was sentenced today to a year and a day in prison and one year of supervised release for accepting kickbacks and bribes from a private contractor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, the Court previously issued a $30,000 money judgement against Edwards.

Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, and Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), join U.S. Attorney King in making today’s announcement.

In February 2022, Edwards pleaded guilty to wire fraud. According to filed documents and today’s hearing, from 2012 to 2018, Edwards and an unnamed individual identified in court documents as the Contractor, devised a bribery and kickback scheme involving Catawba County (the County) government contracts. As Edwards admitted in court, as Director of Utilities and Engineering, Edwards had the authority to review and award contracts on behalf of the County government to private businesses, for engineering and consulting activities related to the County’s landfill, and solid waste and natural gas projects, among others. As court documents show, Edwards admitted to awarding contracts to three businesses associated with the Contractor, all while receiving gifts and other things of value that influenced his decisions, such as expensive meals, tickets to sporting events, and wine-tasting tours, totaling more than $30,000.

Edwards will begin serving his sentence upon designation of a federal facility by the federal Bureau of Prisons.

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

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

 

 

 

CHARLOTTE, N.C. – A North Carolina man was sentenced yesterday to 41 months in prison for conspiring to defraud the United States by preparing and filing false tax returns.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Dena J. King for the Western District of North Carolina and Special Agent in Charge Donald “Trey” Eakins of IRS-Criminal Investigation, Charlotte Field Office, made the announcement.

According to court documents and statements made in court, Joseph Octave, 49, of Charlotte, was the leader of a multi-year, multimillion-dollar tax fraud scheme involving hundreds of fraudulent tax returns. Octave was the owner and operator of Kapital Financial Services, a tax preparation business with two offices in Charlotte. From 2014 through 2019, Octave used his tax business to orchestrate a criminal conspiracy in which he directed his employees to prepare and file fraudulent tax returns.

Octave instructed his employees to use several methods to falsify clients’ tax returns, including claiming false deductions, business losses, American Opportunity credits, education credits and earned income tax credits. Octave also trained his employees on how to create the fraudulent returns to avoid IRS detection and provided them with scripts and cheat sheets. To further conceal the fraud, Octave instructed his employees not to give clients copies of their own tax returns and not to share with the clients any details beyond the total refund amount.

According to filed documents and information presented in court, the falsified tax returns and false deductions resulted in reduced tax liabilities and inflated tax refunds for Octave’s clients. Furthermore, because the majority of the time the tax preparation fees were taken directly from the clients’ fraudulently inflated tax refunds, in many instances the clients were unaware of how much they were being charged. As a result of the tax scheme, Kapital Financial Services earned at least $700,000 in fees for preparing the fraudulent tax returns, and, as the owner, Octave received the largest share of this income. The conspiracy caused a total tax loss of more than $2.5 million.

In addition to the term of imprisonment, U.S. District Judge Max O. Cogburn Jr. ordered Octave to serve two years of supervised release and to pay approximately $2.5 million in restitution to the United States.

IRS-Criminal Investigation investigated the case.

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

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Larry Elwood Steptoe, 41, of Hickory, N.C., to 20 years in prison and five years of supervised release for distributing narcotics, 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 Thurman Whisnant of the Hickory Police Department join U.S. Attorney King in making today’s announcement.

In December 2020, law enforcement learned that Steptoe was trafficking narcotics in Catawba and Alexander Counties. Over the course of a five-month investigation, law enforcement determined that Steptoe was selling substantial amounts of methamphetamine and crack cocaine and conducted the majority of the drug sales from his auto detailing business in Taylorsville, N.C. On May 13, 2021, law enforcement executed a search warrant at Steptoe’s home in Catawba County, seizing $2,700 in U.S. currency, approximately 20 grams of crack cocaine, and approximately 284 grams of methamphetamine. Court records show that Steptoe engaged in drug trafficking while he was on probation for state drug charges. As a result of Steptoe’s previous federal drug conviction and state felony drug conviction, the Court sentenced Steptoe as a career offender.

Steptoe 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 commended the ATF and the Hickory Police Department for their investigation of the case, and thanked the North Carolina State Bureau of Investigation, the Catawba County Sheriff’s Office, and the Taylorsville Police Department for their invaluable assistance.

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

 

CHARLOTTE, N.C. – Jayton Gill, 34, of Durham, N.C., appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to operating an unlicensed money transmitting business and willful failure to file a tax return, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Robert R. Wells, Special Agent in Charge of the FBI in North Carolina, and Donald “Trey” Eakins, Special Agent in Charge of IRS Criminal Investigation (IRS-CI), Charlotte Field Office, join U.S. Attorney King in making today’s announcement.

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

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

Gill was released on bond following his guilty plea. The charge of operation of an unlicensed money transmitting business carries a maximum penalty of five years in prison and a $250,000 fine. The maximum penalty for willful failure to file a tax return is one year in prison and a $100,000 fine.

The FBI and IRS-CI investigated the case. Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced to prison two men for the 2020 armed robbery of a convenience store in Charlotte, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Brandon Antoine Martin, 24, of Charlotte, was ordered to serve 132 months in prison followed by five years of supervised release. Rodrick Lovette Tillman, 29, also of Charlotte, was sentenced to 114 months in prison and five years of supervised release.

Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney King in making today’s announcement.

In February and March 2022, Tillman and Martin each pleaded guilty to robbery of a business affecting interstate commerce, or Hobbs Act Robbery, and possession and brandishing of a firearm in furtherance of a crime of violence. According to court documents and today’s sentencing hearing, on October 6, 2020, Tillman and Martin robbed the Xpress Mart convenience store located at 2700 N. Tryon Street in Charlotte. Court records show that Tillman entered the convenience store first pretending to be a customer. After picking up two items, Tillman approached the cash register as if to pay for them. While Tillman was at the counter, Martin entered the store. Martin walked up to the counter, pulled out a black semi-automatic pistol with an extended magazine, leaned over the counter and pointed the gun at the store clerk. According to court records, shortly after Martin pointed his gun at the victim, Tillman also pulled out a black semi-automatic pistol and pointed it at the victim. Tillman then walked around the counter and held the gun to the victim’s head and chest area while Martin remained across the counter, holding the gun to the victim’s torso. The victim opened the cash drawer and removed the cash. At least one of the gunmen then told the victim to move toward a cabinet/shelf to get more cash. The victim complied and Tillman accompanied him. The two robbers fled the scene with $400 in cash.

Following the robbery of the convenience store, Tillman and Martin were involved in a shooting incident at another location in Charlotte, during which Martin sustained a gunshot injury. Martin was taken to the hospital to receive treatment for his injury. While investigating the shooting incident, law enforcement recovered three loaded firearms from Martin’s vehicle, two of which Martin and Tillman had used during the convenience store robbery.

Over the course of the investigation, law enforcement determined that Martin is affiliated with the Bloods street gang. Law enforcement also determined that after the three firearms were seized from Martin’s vehicle following the robbery, Martin attempted to acquire another firearm by offering to trade cash and drugs.

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

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

ASHEVILLE, N.C. – Today, U.S. Attorney Dena J. King swore in Annabelle Chambers as a Special Assistant U.S. Attorney (SAUSA) for the U.S. Attorney’s Office’s Criminal Division in Asheville. Ms. Chambers is a state prosecutor with North Carolina’s 43rd Prosecutorial District which serves the Counties of Cherokee, Clay, Graham, Macon, Swain, Haywood and Jackson, under the leadership of District Attorney Ashley Welch.

The SAUSA position is a reflection of the partnership between the 43rd Prosecutorial District and the U.S. Attorney’s Office. State and federal authorities share concurrent jurisdiction over certain crimes. Concurrent jurisdiction allows for prosecution in either state or federal court. The U.S. Attorney’s Office and the District Attorney’s Office have established this formal partnership to ensure that the appropriate venue for prosecution is selected. The goal of this partnership is to make counties within the jurisdiction of the 43rd Prosecutorial District safer through a coordinated enforcement effort.

In making today’s announcement, U.S. Attorney King said, “The SAUSA program is an important tool we can use to make communities safer by identifying and prosecuting cases in federal court that result in the greatest local impact. I want to thank District Attorney Welch for her continued support of the program and for her ongoing coordination and cooperation with our office in our shared goal to protect our communities.”

“Cooperation across all levels of government is one of the most effective weapons we have in combatting crime," District Attorney Welch said. “The SAUSA program has proven an amazing tool for vigorous prosecution of criminal activity in the 43rd Prosecutorial District. This program demonstrates how a strong, successful and sustained federal and state partnership can help us safeguard our communities. I thank U.S. Attorney King for her continued support of SAUSA and anticipate additional initiatives involving her office and mine.”

As a dually-sworn state and federal prosecutor, Ms. Chambers will be primarily responsible for criminal cases arising out of the 43rd Prosecutorial District involving the violation of federal criminal statutes. Ms. Chambers will remain on the staff of the District Attorney’s Office but will serve in all respects as an Assistant U.S. Attorney in charge of overseeing the progression of federal cases from the initiation of federal charges to disposition and sentencing. Ms. Chambers will collaborate with state, local and federal agencies to identify and prioritize cases originating in state court for federal indictment. Ms. Chambers will also be responsible for drafting charging documents, search and arrest warrants, complaints, motions and responses, presenting matters before the grand jury, representing the United States before all federal courts in the Western District of North Carolina, and other such duties necessary for the successful prosecution of these cases.

Prior to joining the District Attorney’s Office, Ms. Chambers was an Associate with Asheville Legal, Wimer Snider, P.C. Before that, Ms. Chambers was an Assistant State Attorney with Florida’s 18th Judicial Circuit in Brevard County, where she prosecuted felony cases in Circuit Court. Ms. Chambers received her law degree from Stetson University College of Law and her undergraduate degree from Sewanee: The University of the South in Tennessee.

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that Terie Smith, 42, of Wingate, N.C., was sentenced to 188 months in prison and five years of supervised release in prison for armed bank robbery.

Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department, join U.S. Attorney King in making today’s announcement.

According to court documents and today’s sentencing hearing, on December 24, 2018, Smith robbed the SunTrust bank branch located at 1935 Galleria Blvd in Charlotte. Court records show that Smith entered the bank wearing an orange ski mask. At the time, three bank tellers were working. Smith was carrying a bookbag in one hand and a firearm in the other. After Smith entered the bank, he approached each teller and demanded money. The tellers handed Smith $21,742 and Smith fled the scene. Smith was arrested on January 15, 2019. At the time he committed the armed bank robbery, Smith was on supervised release for a previous federal bank robbery conviction in 2003. Smith was also previously convicted of Felony Breaking and Entering, Felony Robbery with a Dangerous Weapon, Assault on a Female, and Felony Second Degree Kidnapping. Under federal sentencing law, Smith was subject to an enhanced sentence as a Career Offender, based on his prior convictions.

Smith is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.

The FBI and CMPD investigated the case.  Assistant U.S. Attorneys Cortney Randall and Matthew Warren handled the prosecution.

 

 

 

CHARLOTTE, N.C. – Kaila Leaann Shanteau-Jackson, 30, of Charlotte, pleaded guilty to wire fraud today, for defrauding the State of Arizona’s COVID-19 Unemployment Insurance (UI) benefit program of approximately $995,000, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

According to plea documents and statements made in court, from June 2020 to September 2021, Jackson engaged in a scheme to defraud the U.S. Department of Labor and the State of Arizona by fraudulently creating and redirecting payments for COVID-19 UI benefits to herself and others. During the relevant time frame, Jackson was employed as a vendor-contractor for a financial institution that serviced the UI benefit program in Arizona through the mailing of pre-paid debit cards to qualified recipients. Jackson held the position of Pre-Paid Claims Initiation Agent with the financial institution and, as part of her employment, Jackson had access to the financial institution’s Pre-Paid Administration System (PAS).

According to court documents, Jackson utilized her employment credentials to divert and re-route UI benefits intended for 138 victims to herself and others. To effectuate the scheme, Jackson accessed PAS and changed the recipients’ address information in the database to addresses in Charlotte to which Jackson and others had access. Once Jackson and others received the re-routed pre-paid debit cards, they either withdrew the benefits in cash from ATMs or engaged in merchant transactions with the stolen funds.

Jackson appeared before U.S. Magistrate Judge David C. Keesler and pleaded guilty to wire fraud. The charge carries a maximum term of 30 years in prison and a $1,000,000 fine. A sentencing date for Jackson has not been set.

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

The prosecution is handled by Assistant U.S. Attorney Matthew Warren of the U.S. Attorney’s Office in Charlotte.  

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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Members of the public in the Western District of North Carolina can also call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.

CHARLOTTE, N.C. – A Monroe, N.C., man charged with wire fraud for operating an investment scheme appeared before U.S. Magistrate Judge David S. Cayer today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. A federal criminal indictment was unsealed following the arrest of Christon Jermaine Brewer, 37, who also goes by the names Chris Bozay and Christian Massey.  

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

According to allegations contained in the indictment, from October 2018 to June 2022, Brewer executed a scheme to defraud at least ten victim-investors of more than $150,000. Brewer falsely represented to his victims – generally friends or acquaintances of the defendant – that he would invest their funds in the stock market and in a cannabis store he was opening in Miami, Florida. The indictment alleges that Brewer represented himself to victims as a wealthy and experienced investor, who would take advantage of investment opportunities to invest the victims’ money in a manner that would return profits and yield guaranteed returns. The indictment further alleges that Brewer sometimes provided victim-investors with Promissory Notes, reflecting the amount of their investments and the date upon which they were to be repaid. Relying upon Brewer’s false and fraudulent representations, victim-investors would then send thousands of dollars to the defendant for investment, often in cash or using mobile peer to peer payment methods, like Apple Pay or Cash App. As alleged in the indictment, Brewer did not invest the victims’ money as agreed.  Instead, he stole the money, and used it to pay for various personal expenses to support his lifestyle. While he was spending the victims’ money, the indictment alleges that Brewer would lull them into thinking their investments were safe by sending them text messages that provided purported updates on their investments and screenshots purportedly showing the high returns on their investments.

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

The charge contained in the indictment is an allegation and the defendant is innocent until proven guilty beyond reasonable doubt in a court of law.

The FBI handled the investigation that led to the charges. Assistant U.S. Attorney Maria Vento of the U.S. Attorney’s Office in   Charlotte is prosecuting the case.

 

CHARLOTTE, N.C. – Justin Segrest, 44, of Mount Airy, N.C., appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to a conspiracy charge for his role in a durable medical equipment (DME) scheme that defrauded Medicare of almost $15 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

According to filed plead documents and today’s plea hearing, during 2018 and 2019, Segrest was a nurse practitioner and was working for a telemedicine company based in Delaware. During the relevant time, Segrest caused thousands of claims to be submitted to Medicare for medically unnecessary orthopedic braces and other DME. As Segrest admitted in court today, Segrest facilitated the scheme by making false claims in medical records to support the fraudulent claims. He did so by signing false medical records describing purported “assessments” of Medicare beneficiaries and certifying that he had performed corresponding medical examinations when, in fact, Segrest had no interaction with the beneficiaries and made no medical determination whether the devices were medically necessary or the beneficiaries needed the DME. Segrest received from the telemedicine company unsigned orders for orthopedic braces for the beneficiaries, which he signed and returned to the telemedicine company in exchange for $15 for each purported assessment that he performed. Through this scheme, Segrest caused the submission of nearly $15 million in false and fraudulent claims to Medicare.

Following today’s plea hearing, Segrest was released on bond. The conspiracy charge carries a maximum prison term of five years and a $250,000 fine. A sentencing date for Segrest has not been set.

The investigation was handled by the FBI and HHS-OIG. Assistant U.S. Attorney Graham Billings of the U.S. Attorney’s Office in   Charlotte is prosecuting the case.

CHARLOTTE, N.C. – With summer upon us, U.S. Attorney Dena J. King urges consumers to be mindful of vacation, employment, and other summertime schemes, and take measures to avoid falling victims to common summer scams.

“Summer is the time of the year that many of us vacation, travel, and spend time with family and friends. But it’s also a popular time for scammers to maximize their profits by preying on consumers trying to save money on a good summer deal. Stay vigilant and beware of summer scams. Think before you buy and don’t let a scammer turn your summer into a nightmare,” said U.S. Attorney King.

The most common scams to look out for during the summer include:

Free or Discounted Vacation Packages – Whether it’s an email congratulating you for winning a free trip that requires you “only” to pay for fees and taxes, or a link to a website offering limited-time travel discounts, these types of summer scams are prominent. Common vacation scams include discounted deals on cruises, all-inclusive resorts, and flights, hotels and car rentals to popular destinations. Don’t be fooled by vacation scams and avoid the urge to take advantage of these too-good-to-be-true offers. Instead, book your travel through reputable, well-known travel engines or travel agencies. If you receive a special travel offer through email, do not make reservations using the provided link, even if it appears to be from a well-known travel booking website. Instead, go directly to the booking engine’s web page to locate the deal and make travel arrangements.

Low-Priced Vacation Rentals – Similar to bogus vacation packages, beware of scammers posting fake short-term rental properties available for a bargain price at popular vacation spots. Sometimes the advertised properties do not exist. Other times, scammers use photos of actual rental properties to create fraudulent listings. Be extra careful before booking a short-term rental property online especially one advertised at a discounted price. To avoid falling victim to this type of scam, either contact a local real estate company that specializes in vacation rentals or search the desired property on multiple short-term rental websites prior to booking to ensure the listing is not a scam. Also, ask the renter for additional photos, and reserve the property using a payment option that makes it easier to recoup a fraudulent charge.

Discounted Excursions or Entertainment Events – Be vigilant against scams that tout limited time offers on vacation excursions or cheap tickets to entertainment events, such as concerts. When booking an excursion, research the company offering the deal. Look for customer reviews that date a few months or years back to ensure this is a well-established business and check with the Better Business Bureau for any complaints on file. In addition, call the company directly before making an online credit card purchase. When buying tickets to events, it’s best to use reputable ticket sellers to ensure the tickets you are purchasing are legitimate.

Free Wi-Fi – During the summer, many people are on the go. With more and more businesses, restaurants, and venues offering free wi-fi access, it is easy to become a victim of wi-fi fraud. With this type of scam, fraudsters use what appears to be legitimate “free” wi-fi to dupe users into connecting to networks that can steal their information. Free wi-fi networks are generally unsecured. To the extent possible, avoid using them altogether, but definitely avoid using them to transmit sensitive information or conduct financial transactions. 

Online summer Jobs – Online summer jobs offer an opportunity for extra income. If you are applying for a summer job online, take extra precautions with furnishing personally identifying information (PII) such as a Social Security number, date of birth, home address, etc. Be extra cautious with online employers who require applicants to send their PII for the purpose of conducting a background check before being offered the job. Instead, research the company and call the company directly to ensure it is a legitimate business in need of summer help.

The Moving Scam – Lots of people take advantage of the summer months to move.  Unfortunately, scammers also are looking to exploit consumers in need of moving services. Moving schemes offering discounted deals can end up being very costly. When moving, take the time to research moving companies and ask for referrals. Be mindful of moving companies that offer low prices, have recent or no online reviews, or ask for advance payment to “lock in” the discounted rate. Check with the local Better Business Bureau to make sure you are dealing with a reputable moving company.

The tips below can help keep you safe from fraud this summer:

• Avoid paying with wire transfers, cash, gift cards, or sending money to individuals with whom you have only communicated online.
• Avoid “free” deals that require you to pay a fee. If a deal is truly free, you should never have to pay for any portion of it.
• Do not give out your credit card, bank account or other personal information.
• Before going on vacation, whether stateside or overseas, contact your banking institution and credit companies so they can alert you of unusual spending patterns or high dollar credit card charges.
• After your vacation, check your credit card or banking statements for extra or fraudulent charges.

To report fraud, file an online complaint with the Federal Trade Commission.

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Koby Dale Tevepaugh, 32, of Hickory, N.C., to 235 months in prison followed by five years of supervised release for drug trafficking and firearm offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

According to filed documents and court proceedings, between September and November 2021, Tevepaugh trafficked large amounts of methamphetamine in and around Catawba County. On November 10, 2021, Tevepaugh shot a firearm at a neighbor and proceeded to barricade himself in his home. Court records show that Tevepaugh eventually surrendered to law enforcement. Upon his surrender, law enforcement seized from Tevepaugh’s residence four kilograms of methamphetamine, $189,270 in cash, and five firearms. Over the course of the investigation, law enforcement seized an additional $22,465 in drug proceeds. Tevepaugh has multiple prior convictions for Breaking and Entering, First Degree Burglary, and felony drug offenses, which resulted in an increased sentence.

Tevepaugh previously pleaded guilty to three counts of distribution of, and possession with intent to distribute, methamphetamine and possession of firearms by a convicted felon.  He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation which has led to the federal prosecution of more than 60 individuals for drug trafficking. Law enforcement have also seized more than 27 kilograms of cocaine, 3.5 kilograms of heroin, 29 kilograms of fentanyl, 49 kilograms of methamphetamine, 70 firearms, more than $385,000 in cash, and over $800,000 in 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 Homeland Security Investigations; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the North Carolina State Bureau of Investigations; the Catawba County Sheriff’s Office; Burke County Sheriff’s Office; the Hickory Police Department; the Morganton Department of Public Safety; the Longview Police Department; the Huntersville Police Department, and the Gastonia Police Department for their coordination and investigation of the case.

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

CHARLOTTE, N.C. – Yesenia Rodriguez, 25, of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to conspiring to commit wire fraud for fraudulently obtaining over $100,000 in COVID-19 relief funds, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Robert R. Wells, 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 filed court documents and today’s plea hearing, Rodriguez engaged in a conspiracy to defraud the U.S. Small Business Administration (SBA) by, among other things, obtaining an Economic Injury Disaster Loan (EIDL) based on false information. As Rodriguez admitted in court today, from April 2020 through May 2021, the defendant conspired with another individual, identified in court documents as G.R., to obtain COVID-19 relief funds, including two loans under the EIDL program and federally subsidized unemployment benefits totaling over $100,000.

Plea documents show that in July 2020, Rodriguez electronically submitted a fraudulent EIDL application for a purported hair and nail salon named Yesenia Rodriguez. Rodriguez, who had recently left her job at a national bank, submitted the application for the purported salon, when in fact Rodriguez did not own a salon and, instead, was collecting unemployment. As a result of the fraudulent EIDL application, Rodriguez received $37,500 in relief funding via electronic financial transactions. Rodriguez’s co-conspirator, G.R., also fraudulently obtained EIDL funding totaling $47,500 for a business identified as Company 1. Although Company 1 was a real operating business, G.R. electronically submitted a fraudulent application that contained false representations about its eligibility for EIDL funding, including the date Company 1 was founded. At the time the EIDL application was submitted for Company 1, G.R. was also fraudulently collecting federally subsidized unemployment benefits from the State of North Carolina. Rodriguez and G.R. fraudulently obtained at least $112,000 in disaster relief funds that were intended for existing businesses and individuals harmed by the COVID-19 pandemic.

Rodriguez was released on bond following today’s guilty plea. The conspiracy charge carries a maximum prison term of 5 years and a $250,000 fine. A sentencing date has not been set.

The CARES Act is a federal law enacted March 29, 2020, and it is designed to provide emergency financial assistance to millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act established several new temporary programs and provided for the expansion of others, including the EIDL program, which is an SBA program that provides low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters.

In making today’s announcement U.S. Attorney King commended the FBI for their investigation and thanked the North Carolina Department of Public Safety Special Operations and Intelligence Unit for their invaluable assistance.

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

The Department of Justice and the U.S. Attorney’s Office for the Western District of North Carolina remain vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. If you think you are a victim of coronavirus fraud or have information pertaining to fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or submit a complaint online using the NCDF Web Complaint Form. 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. – Jose Velasquez, 38, of Mexico, was sentenced yesterday to 151 months in prison and five years of supervised release for drug trafficking, money laundering, and illegal reentry, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, join U.S. Attorney King in making today’s announcement.

According to court documents and court proceedings, from at least 2018 to 2020, Velasquez was a member of a drug trafficking organization (DTO) responsible for distributing bulk quantities of cocaine, heroin, and methamphetamine in the greater Charlotte area and throughout Western North Carolina. On January 24, 2020, law enforcement arrested Velasquez on criminal illegal reentry charges. On the same date, law enforcement also executed search warrants at Velasquez’s residence and vehicle, seizing more than two kilograms of heroin, half a kilogram of cocaine, and approximately half a kilogram of fentanyl and methamphetamine. As described in court documents, in addition to trafficking narcotics, Velasquez laundered drug proceeds to the DTO leaders in Mexico via money wires. Velasquez also used his boutique shop, Envios & Botique Rosita, located at 4801 S. Tryon Street, in Charlotte, to conduct his drug trafficking activities and to launder drug proceeds for the DTO.

Velasquez pleaded guilty to conspiracy to distribute and to possess with intent to distribute heroin, methamphetamine and cocaine, money laundering conspiracy, possession with intent to distribute heroin, and illegal reentry of a deported alien subsequent to the conviction for an aggravated felony, that being Fraud in 2004 and Larceny from the Person in 2009.

Velasquez is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. Velasquez will also be subject to deportation proceedings upon the completion of his federal sentence.  

The DEA and HSI led the investigation, which is the result 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. 

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

CHARLOTTE, N.C. – Dajuan Akeem Blair, 26, of Charlotte, was sentenced to 151 months in prison today for sex trafficking of a minor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Blair was also ordered to serve a lifetime under court supervision and to register as a sex offender.

Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.

According to filed documents and statements made at today’s sentencing hearing, Blair was convicted of causing a minor female to engage in prostitution. The victim was a 16-year-old runaway, and she was introduced to Blair by a mutual friend, also a teenager, who had previously dated the defendant. Blair knew that both females were minors. According to court records, on December 26, 2018, Blair rented a motel room in Charlotte, where he took pictures of the minors and used the pictures to advertise the minors for sex online. Over the next two days, Blair arranged sexual encounters for the minors and set the prices for those encounters. Court records show that Blair took a portion of the minor victim’s earnings from the commercial sex.

“Blair trafficked two underage girls and used them like commodities to be traded for his gain,” said U.S. Attorney King. “Let it be known that severe consequences befall those who engage in this reprehensible conduct,” said U.S. Attorney King.

“Blair lied to his young victims from the very start, he robbed them of their civil rights to make a profit, but now he will pay the price. There is no way of knowing the long term psychological damage caused to these victims. The FBI devotes significant resources to help sex trafficking victims recover from the trauma they suffer,” said Special Agent in Charge Wells. 

“The defendant’s heinous predatory behavior is deserving of a lengthy prison sentence to ensure he cannot inflict further harm on other victims,” said Special Agent in Charge Martinez. “HSI is appreciative of the collaborative efforts of CMPD, FBI and the U.S. Attorney’s Office Human Trafficking Task Force for its work with HSI on this investigation.”

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

The investigation was handled by the FBI, HSI and CMPD. Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte prosecuted the case.

If you are the victim of a human trafficking or may have information about a potential trafficking situation, call the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888.  NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week, every day of the year related to potential trafficking victims, suspicious behaviors, and/or locations where trafficking is suspected to occur. To submit a tip to the NHTRC online please visit https://humantraffickinghotline.org/report-trafficking. 

You can also contact Homeland Security Investigations at 1-866-DHS-2-ICE (1-866-347-2423) or the Charlotte Office of the FBI at 704-672-6100.

 

ASHEVILLE, N.C. – Chief U.S. District Judge Martin Reidinger sentenced Lindsey Allison Kerns, 39, of Mars Hill, N.C., to 45 months in prison today, for stealing more than $1 million from two elderly clients in her care, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Reidinger ordered Kerns to serve three years under court supervision and to pay $1,088,554.99 as restitution.

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

“Most home health care providers are reputable and committed to providing quality services to older adults entrusted in their care. Kerns is not one of them,” said U.S. Attorney King. “This defendant took advantage of two vulnerable seniors, exploited their trust, and swindled them out of hundreds of thousands of dollars. As a community, it is our responsibility to take care of our elders. And as law enforcement, it is our duty to put those who harm them behind bars.”

“Lindsey Kerns was hired to provide daily care to two elderly people. She overcharged them by a million dollars and bought trucks, ATVs, expensive clothing and went on lavish vacations. This is a case of greed and abuse of trust. The FBI will continue to work with our partners to ensure anyone who commits crimes against the elderly will face the consequences,” said Special Agent in Charge Wells.

“Senior citizens and those who care about them need to be on alert for various scams targeting elder Americans. The IRS recognizes the pervasiveness of fraud targeting older Americans, and we will work with our law enforcement partners to combat these crimes and hold the responsible parties accountable for their actions,” said Brian Thomas, Assistant Special Agent in Charge of IRS-CI in Charlotte.

According to information contained in court documents and court proceedings, from December 2018 to April 2020, Kerns owned and operated Home Care Coordinators, LLC, a business that provided home health care in Buncombe and Madison Counties. Beginning in December 2018, Kerns arranged to provide home health care services to two elderly clients, identified in court documents as S.A. and P.R., who were 86 and 90 years old, respectively. The two elderly clients lived in Asheville and were close friends. P.R. also suffered from dementia and was not capable of handling his affairs. S.A. served as P.R.’s power of attorney and managed and controlled P.R.’s finances.

According to court documents, Kerns provided home health care services to S.A. and P.R. all of 2019 and into 2020. During that time, Kerns did not provide S.A. or P.R. with detailed invoices of her home health care services. Instead, Kerns orally informed S.A. on a weekly basis how much money Kerns claimed she was owed for services rendered, and S.A. wrote checks in those amounts from P.R.’s bank accounts. Over the course of the scheme, Kerns defrauded the elderly victims in a number of ways, including by overbilling them for services that were inflated or never provided; double-billing them for other services such as cleaning and moving that were either not provided or were provided by caregivers during hours already billed; and by billing at a higher rate than what Kerns and the victims had agreed upon.

According to court documents, from December 2018 through April 2020, Kerns directed S.A. to pay, and did receive, $1,465,546.99 for home health care and other services allegedly rendered by Kerns to the victims. The actual fair market value of the services provided to the victims by Kerns was $376,992. Kerns thereby overcharged S.A. and P.R. $1,088,554.99 for services that were never provided.

Kerns used the money she swindled from the victims to purchase vehicles and ATVs, to buy luxury retail items, and to pay for hotel stays and vacation rentals.

According to court records, when Kerns learned she was being investigated by the FBI and IRS, she made a number of false statements to federal agents related to her business activities. For example, Kerns lied about issuing IRS Form 1099s to her employees, lied about purchases she made using the victims’ money, and lied about additional income she received from another client. In addition, after Kerns was served with a grand jury subpoena requiring her to produce certain business records, Kerns fabricated such records and generated false invoices based on the amounts she believed she had received from S.A. and P.R. rather than providing invoices for actual services rendered.

On February 9, 2022, Kerns pleaded guilty to wire fraud and money laundering. She is currently released on bond and will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney King commended the FBI and IRS-CI for their investigation of this case. The U.S. Attorney’s Office in Asheville handled the prosecution.

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

ASHEVILLE, N.C. – Today, Chief U.S. District Judge Martin Reidinger sentenced Matthew Sidney Geouge, 35, of Hendersonville, N.C., to one year and one day in prison for conspiracy to violate the Clean Air Act by selling more than 14,000 illegal devices that defeat required vehicle emissions control systems, also known as “defeat devices,” announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Geouge was also ordered to serve three years of supervised release, six months of which will be in home confinement, and to pay a civil penalty of $1.3 million to the Environmental Protection Agency (EPA), and $1.2 million in restitution to the IRS. In addition to the Clean Air Act violation, Geouge was also sentenced for tax evasion.

Charles Carfagno, Special Agent in Charge of the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, join U.S. Attorney King in making today’s announcement.

Geouge’s co-conspirators were previously sentenced for their roles in the scheme after pleading guilty to conspiracy to violate the Clean Air Act:

• John A. Slagel, 52, of Fairbury, Illinois, was sentenced to three years of probation, to include six months of home confinement, and was ordered to perform 100 hours of community service and to pay a $150,000 fine.
• Joshua L. Davis, 43, of Metamora, Illinois, was sentenced to three years of probation, to include six months of home confinement, and was ordered to perform 80 hours of community service and to pay a $50,000 fine.
• Spade Kaosu Bailly, 50, of Hendersonville, was sentenced to three years of probation, to include six months of home confinement, and was ordered to perform 100 hours of community service and to pay a $10,000 fine.
   

“Tuners” are devices capable of defeating vehicles’ computerized emissions controls, in violation of the Clean Air Act. In 2008, Geouge approached a company that manufactured tuners and he tailored software programs for the tuners known as “tunes,” designed to maximize the engine power of particular vehicles resulting in significant increases in harmful air emissions. Beginning in 2012, Slagel worked for and eventually owned the company that manufactured the tuners. Davis and Bailly conspired with Geouge and created other companies that sold tuners manufactured by Slagel’s company with Geouge’s tunes installed on them. In total, the co-conspirators sold far in excess of 14,000 illegal tuners, worth millions of dollars.

The EPA issued a notice of violation to Geouge in 2015. However, Geouge continued to sell and service illegal devices. Geouge also evaded paying a penalty owed to the EPA, and taxes owed to the IRS, by having another individual receive the income he earned from the sale of the illegal devices.

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

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

CHARLOTTE, N.C. – A Charlotte doctor is facing federal charges for her role in a durable medical equipment (DME) scheme that defrauded federal benefits programs of more than $11 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Sudipta Mazumder, 46, of Charlotte, is charged with one count of health care fraud and six counts of making false statements relating to health care matters.

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

According to allegations contained in the indictment, during 2019 and 2020, Mazumder was a doctor in Charlotte who worked as an independent contractor for a Delaware-based telemedicine company. During the relevant time frame, Mazumder allegedly signed fraudulent orders for medically unnecessary durable medical equipment, specifically knee braces, resulting in the submission of thousands of fraudulent reimbursement claims to Medicare and TRICARE totaling approximately $11,436,873. The indictment alleges that Mazumder falsely stated in those orders that she performed medical examinations of Medicare and TRICARE beneficiaries and falsely certified that the braces were medically necessary.

According to allegations in the indictment, contrary to her claims, Mazumder never examined the Medicare and TRICARE beneficiaries. Instead, Mazumder allegedly had little or no interaction with the beneficiaries and made no medical determination whether the devices were medically necessary or the beneficiaries needed the DME. Mazumder received from the telemedicine company unsigned orders for orthopedic braces for the beneficiaries, which she signed and returned to the telemedicine company in exchange for $20 for each purported assessment that she performed.

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

The health care fraud charge carries a maximum prison term of 10 years and a $250,000 fine. The charge of making false statements relating to health care matters carries a maximum penalty of five years in prison and a $250,000 fine, per count.

Mazumder’s initial appearance has been scheduled for July 12, 2022, in federal court in Charlotte.

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

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

 

STATESVILLE, N.C. – A federal jury in Statesville has convicted Vincent Deritis, 33, of Hickory, N.C., of sexual exploitation of a minor and possession of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Thurman Whisnant of the Hickory Police Department join U.S. Attorney King in making today’s announcement.

According to filed court documents, trial evidence and witness testimony, between October 29, 2018, and March 17, 2019, Deritis secretly recorded a minor while the minor was exiting the shower. On April 3, 2019, law enforcement executed a search warrant at Deritis’s residence. A forensic analysis of electronic devices seized from Deritis’s home as well as his cloud storage account revealed that the defendant possessed images and videos that depicted the minor naked while exiting the shower, photos depicting the minor’s genitalia, and thousands of images of child pornography Deritis had downloaded from the internet. The jury convicted Deritis of three counts of production of child pornography and one count of possession of child pornography.

Deritis is currently in federal custody. A sentencing date has not been set. Each count of production of child pornography charge carries a minimum statutory sentence of 15 years and a maximum of 30 years in prison and a $250,000 fine. The charge of possession of child pornography carries a statutory penalty of no more than 20 years in prison and a $250,000 fine.

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

Assistant United States Attorneys Cortney Randall and Nick J. Miller, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.

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

CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has returned a criminal indictment charging Mac Wayne Billings, 48, of Raleigh, N.C., with securities fraud, for defrauding at least 19 victims of more than $3.6 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. 

Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division, joins U.S. Attorney King in making today’s announcement.

According to allegations contained in the indictment, between 2012 and 2019, Billings engaged in securities fraud through his company, Alpha Finance Company (ALPHA), located in Sparta, North Carolina. The indictment alleges that Billings fraudulently obtained more than $3.6 million from at least 19 victims throughout Alleghany, Wilkes and Surry Counties, by soliciting them to invest in ALPHA via “debenture notes.” A debenture note is a type of debt instrument typically not backed by a collateral. As alleged in the indictment, Billings, who is a licensed North Carolina CPA, falsely promised ALPHA’s victim-investors that their money would be used to make high interest consumer loans from which the investors would receive interest payments. Contrary to his promises, Billings used little, if any, of the investors’ funds to make new consumer loans. Rather, Billings used some of the investors’ money to make payments to other investors and to pay himself over $1 million in salary and distributions from ALPHA.

The indictment further alleges that Billings used investment statements, emails and meetings to mislead and deceive victim-investors into believing that ALPHA was a profitable company and that the victims’ investments were safe. In this regard, Billings allegedly failed to disclose material information concerning ALPHA’s financial and business troubles to victim-investors, including that he had sold or mortgaged most of ALPHA’s assets to hard money lenders. Based on the fraudulent information provided by Billings, many of the victim-investors renewed and/or made additional investments with ALPHA, causing them to incur further financial losses.

Finally, lawsuits brought by the North Carolina Commissioner of Banks (NCCOB) and the North Carolina Attorney General’s Office alleged that Billings failed to comply with North Carolina laws governing consumer finance and retail installment loans.  Billings defaulted on these lawsuits. Consequently, the NCCOB revoked ALPHA’s license due to non-compliance with North Carolina’s Consumer Finance Act. Courts in Alleghany and Wake Counties declared ALPHA’s loan null and void, leaving the investor-victims with no assets to recoup their losses.

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

The securities fraud charge carries a maximum prison term of 20 years and a $5 million fine. Billings’ initial appearance will be scheduled in federal court in Charlotte.

In making today’s announcement, U.S. Attorney King commended the FBI for their investigation of the case and thanked the U.S. Securities and Exchange Commission, the North Carolina Commissioner of Banks, and the North Carolina Attorney General’s Office for their cooperation.

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

CHARLOTTE, N.C. – United States Attorney Dena J. King has been selected to serve as Chair of the Native American Issues Subcommittee of the Attorney General’s Advisory Committee (AGAC) of U.S. Attorneys.

U.S. Attorney King will also serve on three additional AGAC Subcommittees: Civil Rights, Violent and Organized Crime, and LECC/Victim/Community Issues.

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

The Native American Issues Subcommittee (NAIS) is the longest standing subcommittee on the AGAC. The NAIS consists of U.S. Attorneys from across the United States serving in districts that include Indian Country or one or more federally recognized tribes. The NAIS focuses exclusively on Indian Country matters, and it is tasked with helping to develop, shape, and implement recommendations on public safety and legal issues affecting Tribal communities. The Eastern Band of Cherokee Indians (EBCI) is the largest federally recognized Indian Tribe east of the Mississippi River and it is located within Western North Carolina.

“I am honored to serve as Chair of the Subcommittee on Native American Issues, the oldest subcommittee of the Attorney General’s Advisory Committee,” said U.S. Attorney King. “I am looking forward to collaborating with my U.S. Attorney colleagues from across the country to provide vital guidance to the Department on important issues impacting Indian Country and how we can best serve Tribal communities."

CHARLOTTE, N.C. – U.S. District Court Judge Kenneth D. Bell sentenced Thuy Tien Luong, 38, of Charlotte, North Carolina, to 15 years in prison, followed by two years of supervised release, and ordered her to pay $75,000 in restitution to the victim. A federal jury previously convicted the defendant of forced labor on Jan. 8, 2021, following a five-day trial.

According to the evidence presented at trial, Luong compelled the victim’s labor for almost two years through a variety of coercive means. The defendant physically, emotionally and verbally punished the victim when she disobeyed the defendant or otherwise failed to perform the required labor to the defendant’s satisfaction. As an example, the defendant falsely claimed that the victim owed her a debt of $180,000, made her sign a debt contract, and threatened to go to the police if the victim did not continue to work to pay off the fabricated debt. The defendant beat the victim with nail salon tools, including cuticle clippers, nail files and brooms leaving the victim with scars, bruises and marks. She also threatened to ruin the victim’s reputation with her family by threatening to tell them information that would negatively impact the victim’s relationship with her family. The defendant’s scheme caused the victim to continue working for the defendant until a particularly violent assault led her to report the defendant to the Davidson Police Department.  

“This defendant used psychological coercion, debt bondage and violence to break down the will of one of her employees, exploit her vulnerabilities and force her to work long hours under threat of serious harm,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “There continues to be no place for such cruel conduct in our society, and the Department of Justice remains committed to identifying and eliminating human trafficking.”

“Human trafficking is human suffering and it has no place in modern society,” said U.S. Attorney Dena J. King of the Western District of North Carolina. “As our nation prepares to commemorate Juneteenth, it’s difficult to grasp that there are still people in our communities subjected to a life of servitude, compelled to work long hours for little or no pay, abused physically and mentally by those who employ them. Traffickers who use their victims as commodities, take advantage of their needs and exploit their vulnerabilities for personal gain will be prosecuted to the fullest extent of the law.”

“Luong’s egregious criminal conduct is a form of human trafficking that not only exploited our nation’s labor laws, but also subjected the victim to unspeakable harm, including physical and mental abuse,” said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “Thankfully, HSI and its law enforcement partners have put an end to Luong’s activity and she is facing appropriately severe consequences. Pursuing human traffickers and protecting their victims remains a top priority of HSI.” 

Assistant Attorney General Clarke, U.S. Attorney King and Special Agent in Charge Martinez announced today’s sentence. The case was investigated by HSI with assistance from the Davidson Police Department and Charlotte-Mecklenburg Police Department. It was prosecuted by Assistant U.S. Attorney Kimlani M. Ford of the Western District of North Carolina and Trial Attorney Maryam Zhuravitsky of the Civil Rights Division’s Human Trafficking Prosecution Unit. Trial Attorney Jessica Arco of the Civil Rights Division’s Human Trafficking Prosecution Unit assisted with sentencing and restitution in this matter.

Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.

CHARLOTTE, N.C. – A federal jury in Charlotte has convicted Kenneth Jerome Watkins, 37, of Atlanta, Georgia, of conspiracy to distribute and to possess with intent to distribute Eutylone, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.  U.S. District Judge Robert J. Conrad Jr. presided over the three-day trial, which ended yesterday. 

According to filed court documents and evidence presented at trial, Watkins along with his co-defendant, Steven Lamar Cloud, and others, was involved in a conspiracy to traffic Eutylone. According to the Drug Enforcement Administration, Eutylone is a schedule I synthetic cathinone, marketed by drug dealers as MDMA (Ecstasy or Molly) and it is frequently abused by youths and young adults. In August and October 2020, Watkins arranged to supply Cloud with pills containing Eutylone. As trial evidence established, Cloud arranged for drug couriers to travel to Atlanta to pick up the pills from Watkins. On October 24, 2020, a trooper with the Georgia State Patrol conducted a traffic stop of the vehicle driven by one of Cloud’s couriers who was returning to Charlotte. Over the course of the traffic stop, the trooper seized over five pounds of pills and more than $4,000 in cash.    

Watkins is currently in federal custody. The charge of conspiracy to distribute and to possess with intent to distribute Eutylone carries a sentence of up to 20 years in prison. A sentencing date for Watkins has not been set. Cloud has also pleaded guilty to federal drug offenses and he is awaiting sentencing. 

This case is the result of the 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 thanked the Federal Bureau of Investigation, Homeland Security Investigations, the Charlotte-Mecklenburg Police Department, and the Georgia State Patrol for the investigation and coordination in this case. 

The U.S. Attorney’s Office in Charlotte is in charge of the prosecution.

 

CHARLOTTE, N.C. – A Charlotte man appeared in federal court today and admitted to stealing mail from residential mailboxes and using the stolen information to commit wire fraud, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Soheil Akhavan Rezaie, 37, entered his guilty plea before U.S. Magistrate Judge David C. Keesler.

Robert R. Wells, 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 filed plea documents and statements made in court, 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 the defendant admitted in court today, Rezaie 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. He then withdrew the funds before the victims and financial institutions could 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 pleaded guilty to wire fraud which carries a maximum penalty of 20 years in prison and a $250,000 fine. A sentencing date has not been set. When Rezaie engaged in this scheme he was on supervised release for a 2017 mail theft conviction. In addition to the current court proceedings, a second revocation of Rezaie’s supervised release is pending, for violating the terms of his supervised release for the 2017 conviction. 

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.

CHARLOTTE, N.C. – Today, U.S. Attorney Dena J. King participated in an end-of-schoolyear celebration during a mentoring session at Charlotte’s Turning Point Academy. Turning Point Academy is an alternative option designed to meet the educational needs of historically underserved middle school and high school students. In addition to providing an educational curriculum, the program offers therapeutic intervention services and behavior and academic prevention and intervention programs, to assist students with developing and implementing a personal plan while attending the program.

In April, U.S. Attorney King was invited to speak to a group of students at Turning Point Academy about her background and experiences as a student and share her challenges and successes as a lawyer throughout her legal career. During her initial visit, U.S. Attorney King was invited to join the Sister Circle, a group made up of high school students at the Academy. Since then, U.S. Attorney King has regularly led mentoring sessions with the Sister Circle students, during which they discuss a number of topics including educational goals, the importance of civic duty, respecting oneself and others, and other areas of interest to the students.

“Being part of the Sister Circle has been a great privilege,” said U.S. Attorney King. “I’m honored to be a member of this close-knit group and I thank the students for placing their trust in me and letting me into their world. My participation has also given me the opportunity to get to know the students better, understand their life experiences, find ways to help them set high expectations for themselves, and encourage their passion for lifelong success. I plan to continue to be in touch with the students and do my part in helping them stay on a positive path.”

Since taking office, U.S. Attorney King has made youth engagement a priority of her community outreach efforts. To date, U.S. Attorney King has collaborated with school districts throughout Western North Carolina to promote youth engagement, support young people in developing the skills they need for future success, and empower students to reach their full potential. Ms. King has spoken with students with Charlotte Mecklenburg Schools, Iredell County Schools, Buncombe County Schools, Asheville City Schools, McDowell County Schools and Cherokee Schools on the Qualla Boundary. During her interactions with the students, U.S. Attorney King has encouraged students to discuss the challenges they face and has urged young people to voice their ideas on how to address these issues.

“As grown-ups we get used to communicating with young people by telling them what they ought to do. However, communication should flow both ways and nobody knows better the challenges young people face than young people,” said U.S. Attorney King. “The purpose of my meetings with students is to hear their stories, learn the impact of trauma and violence in their lives, listen to their thoughts on disparities and inequities throughout society, and understand the obstacles they need to overcome to realize their full potential. These interactions can help guide our violence prevention strategy at a federal level and determine what federal funding and resources are available to address our students’ needs,” King added.

Throughout her school engagements, U.S. Attorney King has also recognized all the adults who work hard to ensure students have the tools and skills they need to succeed. “Students do not succeed on their own,” U.S. Attorney King stated. “There is an extensive and dedicated support network of teachers, administrators, parents, guardians, trusted adults and community members working hard to ensure young people learn how to successfully navigate life’s twists and turns, understand how to become valued members of our communities, and more importantly how they can grow up to develop into positive agents of change. I thank all these individuals for their hard work and their ongoing commitment to our children.”

ASHEVILLE, N.C. – A Buffalo, New York man who traveled to Western North Carolina to engage in sexual activity with a minor was sentenced to 25 years in prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Allen Roger Cobb, 63, was ordered to serve a lifetime of supervised release and to register as a sex offender.

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.

“Cobb is a repeat sex offender who was willing to travel great distance for his sexual gratification with a child. Thanks to the work of HSI and my office, this dangerous predator is off the streets and no longer able to harm innocent children,” said U.S. Attorney King.

“One of HSI’s most important missions is to protect children from predators like Cobb. As a repeat offender Cobb has proven he was willing and capable of traveling to North Carolina to irrevocably harm yet another child, were it not for the outstanding work of our special agents. We will continue to utilize all of the resources at our disposal to ensure individuals like Cobb are investigated and prosecuted to the fullest extent that the law allows,” said Special Agent in Charge Martinez.

According to filed court documents and today’s sentencing hearing, beginning in July 2021, Cobb began communicating online with an undercover HSI agent posing as the parent of a minor female. During the online exchanges, Cobb expressed an interest in having sexual contact with the minor and discussed travel arrangements and details pertaining to the commission of the sexual assault. According to court records, over the course of their discussions, Cobb expressed concern to the HSI agent about being tracked by law enforcement given his sex offender registration status and stressed the importance of being discreet in their communications.

Cobb was arrested on August 31, 2021, after he travelled from Buffalo to Western North Carolina to engage in a sexual act with a minor. At the time of the arrest, law enforcement found a stuffed toy Cobb had purchased as a gift for the minor and a camcorder which Cobb intended to use to record the sexual assault.

On December 29, 2021, Cobb pleaded guilty to traveling to engage in illicit sexual conduct with a 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. 

U.S. Attorney King thanked HSI for their investigation that led to today’s sentence. Assistant U.S. Attorney Alexis I. Solheim of the U.S. Attorney’s Office in Asheville prosecuted the case.

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.

 

 

 

# # #

 

CHARLOTTE, N.C. – United States Attorney Dena J. King has selected Assistant U.S. Attorney (AUSA) Caroline McLean of the U.S. Attorney’s Office in Asheville to serve as the Western District’s Environmental Justice Coordinator.

On May 5, 2022, the U.S. Department of Justice announced a series of actions aimed at enhancing the Department’s efforts to secure environmental justice for all Americans. In making the announcement, U.S. Attorney General Merrick B. Garland highlighted specific actions to strengthen the Department’s commitment to ensuring equal justice under the law by advancing the cause of environmental justice. Specifically, Attorney General Garland announced the creation of a new Office of Environmental Justice within the Department’s Environmental and Natural Resources Division (ENRD); the launching of a comprehensive environmental justice enforcement strategy to advance the cause of environmental justice through the enforcement of federal laws; and the issuance of an Interim Final Rule to restore the use of supplemental environmental projects when deemed appropriate.

“Although violations of our environmental laws can happen anywhere, communities of color, indigenous communities, and low-income communities often bear the brunt of the harm caused by environmental crime, pollution, and climate change,” said Attorney General Garland. “For far too long, these communities have faced barriers to accessing the justice they deserve. The Office of Environmental Justice will serve as the central hub for our efforts to advance our comprehensive environmental justice enforcement strategy. We will prioritize the cases that will have the greatest impact on the communities most overburdened by environmental harm.”

Attorney General Garland also directed U.S. Attorney’s Offices across the nation to designate an Environmental Justice Coordinator (EJC). As the Western District’s EJC, AUSA McLean will be responsible for developing and overseeing the Office’s environmental justice enforcement strategy; serve as legal counsel on matters related to environmental justice; prosecute criminal and civil environmental justice cases; and conduct public outreach and awareness activities related to environmental justice. AUSA McLean will also serve as the point of contact for environmental justice matters and will create and participate in environmental enforcement task forces. She will also be in charge of establishing a procedure for members of the public to report environmental justice concerns within the Western District of North Carolina.

AUSA McLean joined the U.S. Attorney’s Office in August 2018 and serves in the Office’s Civil Division in Asheville. AUSA McLean is responsible for handling civil defensive litigation in federal and state court, and affirmative civil enforcement cases on behalf of the United States. She is also a member of the Office’s recently-formed Civil Rights Team. In June 2020, AUSA McLean was selected as Buncombe County Bar Distinguished Young Lawyer for her contributions to the legal profession and the community as a member of the Bar. 

In making today’s announcement, U.S. Attorney King said, “AUSA Caroline McLean is an experienced federal prosecutor dedicated to serving the people of the Western District of North Carolina. As my Office’s Environmental Justice Coordinator, AUSA McLean will work closely with Department of Justice components, local, state and federal agencies, and stakeholders within the community to address concerns related to environmental justice, using all available legal tools to promote justice for communities historically harmed by environmental violations.”

ASHEVILLE, N.C. – U.S. Attorney Dena J. King announced today that Pembroke, North Carolina based behavioral healthcare provider, Healthkeeperz, Inc. (Healthkeeperz), has agreed to resolve allegations that the company violated the False Claims Act by billing claims to Medicaid programs that were not reimbursable under the applicable North Carolina Medical Clinical Coverage Policy. Healthkeeperz has agreed to pay $2.1 million to resolve the allegations.

Healthkeeperz provides case management services for Medicaid beneficiaries under the North Carolina Medicaid Community Alternatives Program for Disabled Adults (CAP/DA). The settlement resolves allegations that from January 1, 2016, through October 31, 2019, Healthkeeperz submitted reimbursement claims to North Carolina Medicaid and received payment based on those claims for services that were not covered by Medicaid.

“Taxpayer-funded programs like Medicaid exist to provide critical services to beneficiaries in need of care, not to fill the coffers of healthcare providers,” said U.S. Attorney King. “When providers seek to divert resources from those who really need them, we will work with our state partners and use all tools at our disposal to pursue and hold accountable entities who perpetrate fraud on federal healthcare programs.”

“Protecting taxpayer resources requires strong partnership between the states and the federal government,” said North Carolina Attorney General Josh Stein. “I appreciate U.S. Attorney King’s partnership. When we work together, we can hold accountable health care providers who break the law.”

The allegations arose from a lawsuit filed by a whistleblower under the qui tam provisions of the federal False Claims Act and the North Carolina False Claims Act.  Under the False Claims Acts, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The act also allows the government to intervene and take over the action. The government conducted the investigation and intervened in this action to effectuate the settlement.

The settlement is a result of a coordinated effort between the Department of Health and Human Services Office of the Inspector General, the North Carolina Attorney General’s Medicaid Investigations Division, and the United States Attorney’s Office for the Western District of North Carolina.

The lawsuit resolved by this settlement is United States and the State of North Carolina ex rel. Ginger L. Hill v. Healthkeeperz, Inc. (1:20CV32).  The claims resolved by this settlement are allegations only and there has been no determination of liability.

ASHEVILLE, N.C. – U.S. Attorney Dena J. King announced the winners of the 6th Annual “Do the Write Thing” (DtWT) writing challenge, during an award ceremony held this evening in Asheville.

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

“Now more than ever, we must provide children with opportunities to express the impact and trauma violence has caused in their young lives,” said U.S. Attorney King, who chairs the DtWT committee in Asheville. “It is equally important for us adults to really listen, with our ears and our hearts, to the ideas and solutions young people have to offer on how to curb violence in our communities. I want to congratulate the winners, the finalists, and all the students who participated in the writing challenge, and thank the parents, guardians, teachers, and school administrators for supporting and encouraging students to express themselves through the written word. Violence reduction is one of the highest priorities of the Department of Justice, and prevention is an important component of an effective crime reduction strategy. I am looking forward to partnering with our schools and our community to develop pathways for positive change.”

A total of 603 essays written by middle school students attending Asheville Middle School and Buncombe County Schools were submitted for consideration. Of the 12 finalists recognized at this evening’s ceremony, Maggie Agan, an 8th grader with Asheville Middle School, and Bear Farmer, an 8th grader with Valley Springs Middle School, were announced as this year’s overall contest winners and were designated as National DtWT Ambassadors. As National Ambassadors, Maggie and Bear, their parents/guardians and the teachers who submitted their essays will be invited to participate in the “Do the Write Thing Challenge National Recognition Week” in Washington, D.C., in July. During this all-expense-paid trip, Maggie and Bear will have an opportunity to visit national monuments and have their works placed in the Library of Congress. 

During this evening’s ceremony, U.S. Attorney King also thanked the Asheville Police Department, the Buncombe County Sheriff’s Office, the Asheville Housing Authority, and the SPARC Foundation for partnering with the U.S. Attorney’s Office to form the DtWT committee. U.S. Attorney King also recognized the teachers, school administrators, counselors, parents, guardians, and caregivers for their dedication in this important endeavor, and thanked them for supporting the students’ efforts and helping them reach their full potential.

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

ASHEVILLE, N.C. – Today, U.S. Magistrate Judge W. Carleton Metcalf sentenced Ana Yorling Rugama Sanchez, 28, of Memphis, Tennessee, to two years of probation and a fine of $1,500, and Jose Carlos “Victor” Pena Lopez, 51, of Winston-Salem, North Carolina, to one year of probation and a fine of $1,000, for their roles in creating false asbestos training certifications, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Charles Carfagno, Special Agent in Charge of the Environmental Protection Agency’s Criminal Investigation Division (EPA-CID) joins U.S. Attorney King in making today’s announcement.

“Sanchez and Pena Lopez failed in their duty to ensure that workers handling asbestos receive proper training on how to safely and legally dispose of this toxic substance,” said U.S. Attorney King. “We will continue to work closely with the EPA to hold accountable those who skirt our environmental laws and jeopardize public health.”

“The failure to properly train asbestos workers and then to issue them false asbestos training certificates places the worker and the general public at an increased risk of asbestos exposure.  Today’s sentencing demonstrates that anyone who intentionally violates the law and puts the public at risk will be held responsible for their actions,” said Special Agent in Charge Carfagno.

According to filed documents and court proceedings, the Toxic Substances Control Act regulates asbestos and other toxic substances, as well as the training and certification of professionals who handle such substances. Sanchez was employed with NovaCor Consulting Group, LLC (NovaCor) as an asbestos training coordinator at the company’s Concord, North Carolina location. Pena Lopez also worked for NovaCor as an asbestos abatement supervisor and an asbestos worker trainer accredited in the State of North Carolina. Court documents show that in June 2018, at Sanchez’s direction, Pena Lopez signed certificates of course completion for asbestos worker refresher training for individuals he did not instruct and that did not fulfill the required training. The certificates were submitted to regulators in obtaining asbestos worker licenses. Court documents also show that in July 2018, Sanchez also certified training for attendees at a course that did not meet the requirements for certification.

On March 14, 2022, both Pena Lopez and Sanchez entered their guilty pleas to violations of the Toxic Substances Control Act.

In making today’s announcement, U.S. Attorney King thanked the EPA-CID and the North Carolina Department of Health and Human Services, Health Hazards Control Unit, for their coordination and investigation of the case.

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

 

ASHEVILLE, N.C. – Today, U.S. District Judge Max O. Cogburn sentenced Blake Forest Watson, 65, of Nebo, N.C., to 180 months in prison on child pornography charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Cogburn ordered Watson 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 Gregory Forest, Chief U.S. Probation Officer of the U.S. Probation Office in the Western District of North Carolina, join U.S. Attorney King in making today’s announcement.

According to filed court documents and today’s sentencing hearing, Watson was previously convicted of child pornography in the Western District of Tennessee and was sentenced to 96 months in prison and five years of supervised release. A condition of Watson’s supervised release involved warrantless searches. On July 22, 2021, federal probation officers conducted a warrantless search at Watson’s residence. Court records show that law enforcement located in the residence an unapproved wireless tablet, the background of which was an image of child pornography depicting a prepubescent minor female. Law enforcement also retrieved a laptop from the residence. A forensic analysis of the electronic devices revealed that Watson had been using them to receive images and videos of child pornography, some of which depicted minors engaging in sadistic and masochistic conduct. In total, Watson possessed in excess of 3,000 images depicting child pornography.

On January 31, 2022, Watson pleaded guilty to receiving child pornography. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

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

Assistant U.S. Attorney Alexis I. Solheim of the U.S. Attorney’s Office in Asheville 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. – Today, U.S. District Judge Kenneth D. Bell sentenced Edward Clyde Ledford, 57, of Lenoir, N.C., a federal firearms licensee (FFL) doing business as Whitnel Outdoorsman and Pawn, for knowingly selling a firearm to a prohibited person, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

“When a federal firearms dealer sells a gun to a prohibited person, that’s one more illegal firearm in our streets that can be used to commit a crime,” said U.S. Attorney King. “As we continue to intensify our efforts to reduce the risk of guns falling into the wrong hands, we must hold accountable gun sellers who put gain before the safety of our community.”

“Keeping firearms out of the hands of prohibited individuals is the absolute first step towards preventing violent gun crime,” said Acting Special Agent in Charge Mein. “While the vast majority of our licensed firearms dealers are respectful of the laws in place, those that choose to violate those laws and jeopardize public safety will face the consequences.”

According to information contained in court documents and court proceedings, on April 15, 2019, an individual who was prohibited from possessing a firearm entered the Whitnel Outdoorsman and Pawn in Lenoir. Court records show that the individual told a store employee that he was interested in purchasing a firearm but would not pass the background check due to prior felonies on his record. The store employee advised the prohibited individual to “bring a buddy back” to fill out the paperwork.

Court documents state that a few days later, on April 18, 2019, the prohibited individual returned to the store with an undercover ATF agent posing as a friend. This time, the prohibited individual spoke with Ledford and again explained that he wanted to purchase a firearm but could not pass the background check. The prohibited individual also told Ledford that, at the suggestion of a store employee, he had brought someone who could pass the background check, and essentially be the straw buyer for the firearm. Ledford did not object, and, over the course of their exchange, the prohibited individual pointed to the semiautomatic shotgun he wanted to purchase. Ledford handed him the firearm and the prohibited individual paid Ledford in cash for the shotgun. Ledford also gave the undercover agent the ATF Form 4473 to fill out for the background check. Once the form was processed and the sale was completed the prohibited individual took possession of the firearm in the presence of Ledford.

Ledford was sentenced to two years of probation and five months of home detention, after pleading guilty to selling a firearm to a prohibited person on November 30, 2021.

U.S. Attorney King credited the ATF for the investigation of this case.

Assistant United States Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte handled the prosecution for the government.

 

 

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Jordan Taylor Randall, 39, of Hendersonville, N.C. was sentenced to 20 years in prison for producing child pornography. Randall was also ordered to register as a sex offender and to serve the rest of his life under court supervision after he is released from prison. Chief U.S. District Judge Martin Reidinger also ordered Randall to have no contact with the victims of his offenses.

Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Blair Myhand of the Hendersonville Police Department join U.S. Attorney King in making today’s announcement.

On November 5, 2021, Randall pleaded guilty to production of child pornography. According to filed documents and statements made in court, in August 2020, law enforcement became aware of Randall’s production of child pornography after it was reported by family members. Law enforcement retrieved multiple electronic devices from Randall’s home and storage unit, including a cell phone, a laptop, cameras disguised to look like aerosol cans, and external electronic storage devices. A forensic analysis of the devices revealed that, on multiple occasions, Randall had secretly recorded videos of two prepubescent minor females while they were undressed or partially undressed in the bathroom and shower. Randall also possessed more than 200,000 images and videos of child pornography, some of which depicted children as young as infants being sexually abused.

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

In making today’s announcement, U.S. Attorney King thanked HSI and the Hendersonville Police Department for their investigation of the case.

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

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

CHARLOTTE, N.C. – A former Wells Fargo Information Technology employee was sentenced to 70 years in prison today on child pornography charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Michael Scott Hoover, 52, of Wilkesboro, N.C., will also be subject to a lifetime of supervised release and must register as a sex offender upon his release from prison. Hoover was also ordered to pay special assessments totaling $132,300.

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), and Sheriff Chris Shew of the Wilkes County Sheriff’s Office join U.S. Attorney King in making today’s announcement. 

“Hoover is a predator who exploited innocent children entrusted in his care for his sexual gratification. I commend the prosecutors and investigators who worked hard on this case to ensure that Hoover is held accountable for his repugnant conduct. Thanks to their efforts, Hoover will spend decades behind bars, serving the longest prison sentence ever imposed on a child predator in this district,” said U.S. Attorney King.  

“Our investigation, and the subsequent trial, have proven that Hoover is a serial child predator who stole the innocence of multiple young victims. Thanks to a thorough investigation by HSI and our partners, he was mistaken in his belief that his technical knowledge could be used to mask his criminal activity. With today’s sentence, he will be held fully accountable for his heinous crimes and will be prevented from harming another innocent child,” said Special Agent in Charge Martinez.

“This case exemplifies the exceptional collaboration between the U.S. Attorney’s Office for the Western District of North Carolina and HSI, the Wilkes County Sheriff’s Office and our Computer Crimes Unit. I applaud the excellent work of all those involved to bring this individual to justice. I especially want to thank Project Safe Childhood for bringing this matter to the attention of law enforcement. Let the message be crystal clear, the North Carolina State Bureau of Investigation’s Computer Crimes Unit will work relentlessly to bring justice to those who would victimize the most vulnerable segment of our population,” said Director Schurmeier.

“The sentence today sends a clear message that these types of despicable acts will not be tolerated. The innocence of our youth should never be violated and the community is a safer place today. I want to thank the federal prosecutors and all the investigative agencies for their great work on this case,” said Sheriff Shew.

According to filed court documents, evidence presented at trial and witness testimony, between June 2018 and August 2019, Hoover used his work cell phone to produce images and videos of two minor males, as young as 12-years-old, engaging in sexually explicit conduct. The child pornography was found on Hoover’s work cell phone during an internal investigation by Wells Fargo, where Hoover was employed at the time. Upon discovering the child pornography, Wells Fargo immediately reported its findings to law enforcement.

According to information presented at today’s sentencing hearing, in addition to producing child pornography, Hoover sexually abused at least eight minors over the course of more than 10 years. Some of the abuse occurred at Hoover’s home and vehicle, and during camping and other overnight trips Hoover had volunteered to take the victims as a chaperone.

A federal jury found Hoover guilty of two counts of production of child pornography and one count of possession of child pornography. Hoover is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney King commended the investigative work of HSI, SBI, and the Wilkes County Sheriff’s Office.

The prosecution for the government was handled by Assistant U.S. Attorneys Stephanie Spaugh and Cortney Randall.

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.

CHARLOTTE, N.C. – A federal jury has convicted Pierre Yvelt Almonor, 49, of Miami Gardens, Florida, for his role in a conspiracy to launder illegal proceeds from a business email compromise scheme that defrauded law firms and other companies of more than $1 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Almonor was convicted of engaging in a money laundering conspiracy to commit concealment money laundering, international concealment money laundering, and transactional money laundering. 

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

A business email compromise scheme, or BEC, is a sophisticated scam, often targeting businesses involved in wire transfer payments. The fraud is carried out by fraudsters compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques, to cause employees of the victim company or other individuals involved in legitimate business transactions to transfer funds to accounts controlled by the scammers. 

According to trial evidence, witness testimony and documents filed with the court, from August 2014 through November 2017, as part of the money laundering conspiracy, Almonor arranged to have nearly $395,000 in real estate closing proceeds stolen through a BEC deposited in a business account over which he exercised control, utilizing it as a “money mule” bank account. Money mule bank accounts are accounts used by fraudsters as a pass-through means of moving fraudulently obtained funds. Almonor then facilitated wires to Spain and South Africa totaling more than $200,000 and withdrew more than $50,000 in proceeds as compensation for his role in the conspiracy. 

Almonor remains on bail pending sentencing. A sentencing date has not been set.  The money laundering conspiracy charge carries a maximum sentence of 20 years, and a fine of $500,000 or twice the value of the proceeds. 

Ugo Ernest Uzomba previously pleaded guilty to money laundering conspiracy and is awaiting sentencing.

The FBI investigated the case. Assistant U.S. Attorneys Maria K. Vento and Matthew T. Warren of the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Dana Dean Fetherson, 44, of Waxhaw, N.C., was sentenced to 120 months in prison and three years of supervised release for possession of ammunition and a firearm by a convicted felon.

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

According to filed documents and information presented in court, on April 3, 2020, an individual identified in court documents as J.B. called 911 to report that her ex-boyfriend, Fetherson, had “busted out” all the windows of her vehicle with an assault rifle, and had pointed a gun at her and threatened to kill her. Fetherson was arrested on state charges in connection with this incident.

Court records show that on October 7, 2020, Fetherson went to J.B.’s house and shot at J.B. and her mother. J.B. sustained an injury to her wrist and her mother was injured by shrapnel. Fetherson was indicted by a federal grand jury in February 2021. When law enforcement served Fetherson with the federal arrest warrant, they found a firearm and drugs in the defendant’s pocket. According to court records, Fetherson has prior criminal convictions and he is prohibited from possessing a firearm or ammunition.  

On December 16, 2021, Fetherson pleaded guilty to possession of ammunition and a firearm by a convicted felon. He is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

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

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

CHARLOTTE, N.C. – Two Charlotte business owners, Hamzeh Jamal Alasfar, 30, and Tayseer Issam Alkhayyat, 34, both of Charlotte, are facing federal charges for allegedly selling   fraudulently obtained Apple iPhones (iPhones) and other electronic devices to domestic and international buyers, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

According to allegations contained in the indictment, Alasfar and Alkhayyat owned multiple businesses located in Charlotte, including Cellport International Inc. (Cellport) and D Town Wireless (D Town). Cellport had an additional location in Florida. The indictment alleges that, as early as 2013 and continuing through January 2020, Alasfar and Alkhayyat purchased thousands of stolen and fraudulently obtained iPhones and other electronic devices, which they then sold and shipped to buyers in other states and in foreign countries.

As alleged in the indictment, Alasfar and Alkhayyat obtained the fraudulently obtained devices from multiple “boosters” and “vendors.” A booster is a person who obtains goods and products through theft or other fraudulent means and sells them for profit. A vendor is a person who collects stolen and fraudulently obtained products from boosters and sells them in bulk. The indictment alleges that Alasfar and Alkhayyat’s businesses were known to boosters and vendors in the area as places they could sell stolen and fraudulently obtained devices, including new in-the-box iPhones.

As alleged in the indictment, between January 2019 and January 2020, the defendants sold and shipped through Cellport more than 20,000 new iPhones. The defendants allegedly knew that many of these iPhones had been stolen or obtained by fraud. During the same time frame, Cellport’s bank account, which was controlled by Alasfar and Alkhayyat, allegedly received more than $15 million in wire transfers, many of which came from new iPhone buyers and freight-forwarding services located abroad, including a company in the United Arab Emirates.

Alasfar and Alkhayyat are charged with conspiracy to transport stolen and fraudulently obtained goods in interstate commerce, which carries a maximum sentence of five years in prison and a $250,000 fine, and two counts of interstate and foreign transportation of stolen property, which carry a maximum prison sentence of 10 years and a $250,000 fine per count.

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

Alasfar and Alkhayyat will be ordered to appear on a summons for their initial appearances, which will be scheduled in federal court in Charlotte.

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

Assistant U.S. Attorneys William Bozin and Michael E. Savage of the U.S. Attorney’s Office in Charlotte are prosecuting the case.

CHARLOTTE, N.C. – Miguel Angel Gonzalez-Perez, a/k/a Fernando Contreras Gonzalez, 54, of Mexico, was sentenced today to 97 months in prison and three years of supervised release for trafficking carfentanil, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

According to the DEA, carfentanil is a synthetic opioid generally used as a tranquilizing agent for elephants and other large mammals. Carfentanil is approximately 10,000 times more potent than morphine and 100 times more potent than fentanyl. The presence of carfentanil in illicit U.S. drug markets is cause for grave concern, as the relative strength of this drug can lead to increased overdoses and overdose-related deaths. Carfentanil also poses a significant threat to everyone who may come in contact with this substance due to accidental exposure, including first responders and law enforcement personnel.

According to court documents and statements made in court, on May 1, 2020, law enforcement in Gaston County conducted a traffic stop of the vehicle Gonzalez-Perez was driving. Over the course of the traffic stop, law enforcement found more than two kilograms of carfentanil hidden in a shoebox inside the vehicle. The approximate street value of the carfentanil seized is $175,000. Court records show that Gonzalez-Perez had traveled to Atlanta to obtain the carfentantil and was headed back to Western North Carolina when he was intercepted by law enforcement.

On November 16, 2021, Gonzalez-Perez pleaded guilty to possession with intent to distribute carfentanil and aiding and abetting.

The DEA and the Gaston County Police Department investigated the case.

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