Western District of North Carolina

CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Timothy Wayne Bates, 51, of Dallas, N.C., to 235 months in prison and five years of supervised release for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

According to filed documents and court proceedings, in August 2020, Bates possessed methamphetamine on three occasions. On August 5, 2020, law enforcement encountered Bates at the parking lot of a hotel in Gaston County, where Bates was found to be in possession of methamphetamine and a firearm. On the same day, law enforcement also recovered additional methamphetamine and $3,500 in cash Bates had attempted to discard near the hotel. On August 14, 2020, law enforcement conducted a traffic stop of the vehicle Bates was driving. Over the course of the stop, law enforcement seized methamphetamine and over $4,000 in cash. Then on August 19, 2020, law enforcement arrested Bates at a hotel in Pineville, North Carolina, after recovering methamphetamine and more than $1,900 in cash.

On June 17, 2021, Bates pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine and three counts of possession with intent to distribute methamphetamine. At today’s sentencing hearing, Bates’s sentence was enhanced due to his multiple prior convictions of felony Breaking and Entering, Embezzlement, Grand Larceny, Possession of Methamphetamine, Receiving Stolen Goods, and Possession with Intent to Distribute Methamphetamine.

This case is the result of the Organized Crime Drug Enforcement Task Force (OCDETF) operation, which has led to the federal prosecution of more than 60 individuals for drug trafficking. Law enforcement have also seized more than 87 kilograms of narcotics, including over 24 kilograms of fentanyl, 66 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 Drug Enforcement Administration, Homeland Security Investigations, the Huntersville Police Department, the Gastonia Police Department, and the Dallas 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. – The U.S. Attorney’s Office announced today the resolution of a civil forfeiture case involving a strip mall located at 1533 West Blvd, near the corner of West Boulevard and Remount Road in Charlotte.

In making todays’ announcement U.S. Attorney Dena J. King said, “For years, rampant drug dealing and drug-fueled crimes took place on the premises of this strip mall, which impacted surrounding neighborhoods. Partnering with local law enforcement to increase the safety of our communities is one my Office’s highest priorities. I want to thank the Charlotte Mecklenburg Police Department for their work in this case and for their ongoing efforts to keep our streets safe.”

In April 2021, the U.S. Attorney’s Office filed a civil forfeiture complaint against the commercial property, alleging that, for years, the property had been the site of significant volume of drug trafficking and other crimes, including 14 shootings since March 2017. Since the filing of the civil action, reported criminal activity has greatly decreased, going from recurrent shootings, assaults, and robberies to no reported violent crime on the property. In addition, 28 total calls for service were reported by the Charlotte Mecklenburg Police Department after the complaint was filed, compared to thousands of service calls received in years prior.

During the pendency of the litigation, the City of Charlotte (the City), pursuant to its Corridors of Opportunity Program, offered to purchase the property from its owners and to implement improvements consistent with the West Boulevard Corridor Vision. The U.S. Attorney’s Office has entered into an agreement with the City to dismiss the forfeiture action, and, as part of the agreement, the City has agreed to take short and long-term crime prevention measures at the property to ensure it no longer poses a threat to the residents of the community.

Assistant U.S. Attorneys Seth Johnson and Benjamin Bain-Creed, of the U.S. Attorney’s Office in Charlotte, handled the forfeiture proceedings, with the investigative support of the Drug Enforcement Administration and the Westover Division and Special Investigations Unit of the Charlotte Mecklenburg Police Department.

 

CHARLOTTE, N.C. – In observance of National Police Week, United States Attorney Dena J. King recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement and pays tribute to the officers who have fallen in the line of duty. This year, the week is observed Wednesday, May 11 through Tuesday, May 17, 2022.

“This week, we gather to pay tribute to the law enforcement officers who sacrificed their lives in service to our country,” said Attorney General Merrick B. Garland. “We remember the courage with which they worked and lived. And we recommit ourselves to the mission to which they dedicated their lives. On behalf of a grateful Justice Department and a grateful nation, I extend my sincerest thanks and gratitude to the entire law enforcement community.”

“Each and every day, our brave men and women in law enforcement do their best to protect us from harm and apprehend those who violate the law, so that our communities can be safe and continue to grow stronger and more just. National Police Week is an opportunity to recognize our federal, state, local and Tribal law enforcement officers for their courage, dedication and commitment to serving their fellow citizens, and to pay tribute to the fallen officers who laid down their lives for us. It is also a time to extend our gratitude and support to our fallen heroes’ families and loved ones, and to reaffirm our commitment to all those who wear the badge and serve our communities with honor and dignity,” said U.S. Attorney King.

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), 472 law enforcement officers died nationwide in the line of duty in 2021, of which 319 succumbed to COVID-19. Eight officers have died in the line of duty in the Western District of North Carolina.  

The names of the 619 fallen officers added this year to the wall at the National Law Enforcement Officer Memorial will be read on Friday, May 13, 2022, during a Candlelight Vigil in Washington, D.C., starting at 8:00 PM EDT. Those who wish to view the vigil live online, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/TheNLEOMF. The schedule of National Police Week events is available on NLEOMF’s website.

 

CHARLOTTE, N.C. – A federal jury returned a guilty verdict late yesterday against Kheungkham Vongphakdy, 47, of Charlotte, for unlawful procurement of citizenship, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell presided over the trial.

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

Vongphakdy was a native and citizen of Laos, but on August 3, 2011, he became a naturalized U.S. Citizen. According to filed documents, evidence presented at trial, and witness testimony, Vongphakdy obtained his U.S. citizenship fraudulently, by providing materially false information on his citizenship application. Trial evidence established that, during the naturalization process, Vongphakdy lied about his criminal history, and failed to admit that, on numerous occasions in November 2008 and October 2009, he had committed criminal sexual acts with a child victim under the age of 13. 

Specifically, on March 7, 2011, Vongphakdy submitted an Application for Naturalization (form N-400) to the United States Citizenship and Immigration Services (CIS). He answered “No” to Question 15, “Have you ever committed a crime or offense for which you were not arrested?” On August 3, 2011, Vongphakdy appeared in person at the CIS office in Charlotte and participated in a naturalization ceremony. He was granted U.S. citizenship and received a Certificate of Naturalization. This occurred approximately three years after he sexually molested a child victim. At the time Vongphakdy was going through the naturalization process immigration officials were not aware of his crimes. Vongphakdy admitted to this criminal conduct on April 4, 2014, when he pleaded guilty to two counts of second-degree sexual offense in the Superior Court of North Carolina in Mecklenburg County. He was ordered to serve 116 to 158 months in prison and to register as a sex offender.

Vongphakdy is currently in federal custody. The maximum penalties for the charge of unlawful procurement of citizenship are 10 years in prison and a $250,000 fine. A sentencing date has not been set.

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

Assistant U.S. Attorneys Kenneth Smith and Katherine Armstrong of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.

CHARLOTTE, N.C. – Each year in April, the Department of Justice and the United States Attorney’s Office for the Western District of North Carolina observe National Crime Victims’ Rights Week (NCVRW), by taking time to honor victims of crime and those who advocate on their behalf.

Throughout this week, the U.S. Attorney’s Office joins federal, state, local and Tribal law enforcement agencies, service providers, victim advocates and other allied professionals in remembering and honoring victims lost to violence and survivors of violence. This year’s observance, which takes place April 24-30, with the theme “Rights, Access, Equity for all Victims,” underscores the importance of assisting crime survivors find their justice by enforcing victims’ rights, expanding access to services, and ensuring equity and inclusion.

To commemorate NCVRW, the U.S. Attorney’s Office hosted an awards ceremony today, to honor outstanding individuals for their dedication to the cause of justice and for their support and service to crime victims.

“This week highlights the importance of promoting equal access to services for crime victims and ensuring that our criminal justice system supports all aspects of victims’ healing and recovery throughout the legal process and beyond,” said U.S. Attorney Dena J. King. “The individuals honored today were selected for their work in delivering justice to victims and their loved ones. Their work serves as a reminder that what we do impacts countless lives. I am grateful for the honorees’ contributions and I am proud of their work in ensuring that each and every crime victim in Western North Carolina receives the assistance and justice they need and deserve.”

Following is a list of the 14 award recipients who were nominated by their colleagues and selected by U.S. Attorney King:

Outstanding Law Enforcement Award

• Special Agent Klarissa Zaffark – Homeland Security Investigations
• Captain Errol Wedra – Mint Hill Police Department
• Captain Marnee Moberg – Mint Hill Police Department
• Criminal Analyst John White – Mint Hill Police Department

Outstanding Criminal Justice Professional Award

• Assistant U.S. Attorney Alexis Solheim
• Assistant U.S. Attorney Kenneth Smith
• Assistant U.S. Attorney Caryn Finley
• Assistant U.S. Attorney Benjamin Bain-Creed
• Assistant U.S. Attorney Julia Wood
   

Outstanding Support Staff Award

• Legal Assistant Robert Cassidy
• Legal Assistant Stacey Clickner
• Legal Administrative Specialist Shafia Rangoonwala
• Paralegal Lisa Shenton

Outstanding Victim Survivor Award

• Arist (Art) Doumtjes

U.S. Attorney King thanked the honorees for their outstanding dedication and service in working with crime victims and noted the important role each honoree has played in delivering justice and providing victims with the support they need in the aftermath of crime.

Throughout the nation, and in the Western District of North Carolina, victim advocacy organizations, community groups and state, local, and Tribal agencies host rallies, candlelight vigils, and other events during NCVRW, to raise awareness of victims’ rights and services. The Office for Victims of Crime (OVC) leads communities in their annual observances of NCVRW by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year, several national events are returning in-person, but will continue to feature livestream feeds. On Thursday, April 28, 2022, a candlelight vigil will be held on the National Mall near the U.S. Capitol from 6:30 p.m. to 7:30 p.m. On Friday, April 29, 2022, the National Crime Victims’ Service Awards Ceremony will be held at Constitution Gardens National Park on the National Mall from 3:00 p.m. to 5:00 p.m. To access a livestream feed for either event, please visit ovc.ojp.gov/live. 

OVC and the U.S. Attorney’s Office encourages widespread participation in the week’s events and in other victim-related observances throughout the year. For additional information about this year’s National Crime Victims’ Rights Week and how to assist victims in your community, please visit OVC’s website at www.ovc.gov. For ongoing updates from OVC and ideas throughout the year on how you can support victims, please subscribe to OVC’s email notifications at https://ovc.ncjrs.gov/ncvrw/subscribe/.

CHARLOTTE, N.C. – The founders of a fake “hedge fund” appeared in court today and pleaded guilty to federal charges for orchestrating a $4 million Ponzi scheme, announced Dena J. King, U.S.  Attorney for the Western District of North Carolina. Austin Delano Page, 26, of Grover, N.C., pleaded guilty to wire fraud, and Brandon Alexander Teague, 26, of Belmont, N.C., pleaded guilty to securities fraud. U.S. Magistrate Judge David C. Keesler accepted the defendants’ guilty pleas. 

North Carolina Secretary of State Elaine F. Marshall, 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 (USPIS), which oversees Charlotte, join U.S. Attorney King in making today’s announcement.

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

According to court documents and admissions made in court, Page and Teague required investors to sign, among other documents, an investment contract with D&T. These documents contained false information, including that D&T would guarantee 100% of the investors’ initial investment, and that investors would receive 70% of the trading profits. In reality, the investors’ money was not guaranteed, and the purported “profits” investors received were Ponzi-style payments, whereby the defendants used new investors’ money to make payments to existing investors. To cover up the fraud, Page and Teague sent victim investors monthly statements that reflected fictitious trading gains. When certain investors and D&T employees began to question the legitimacy of D&T’s operations, Page created fictitious screenshots of various financial accounts that reflected inflated D&T account balances. For example, Page created a fake screenshot of a D&T brokerage account that reflected a balance of over $16,000,000, when in reality the account had a balance of less than $7.00. 

Contrary to representations made to victims, their money was not generally invested in securities. In addition to making Ponzi payments to investors, a significant portion of the funds was used to pay excessive salaries and other compensation to D&T employees, including to members of Page’s family. For example, Page paid several D&T employees annual salaries of over $100,000 and also paid certain employees several thousand dollars each for getting the D&T company logo tattooed on their bodies. The defendants also squandered victims’ money on personal expenses such as clothing, jewelry, travel, luxury car rentals, and to make cash withdrawals.

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

The defendants were released on bond with home detention and location monitoring following the plea hearings. Page pleaded guilty to one count of wire fraud, which carries a maximum prison term of 20 years and a $250,000 fine. Teague pleaded guilty to one count of securities fraud, which carries a maximum prison term of five years and a $250,000 fine. A sentencing date for the defendants has not been set.

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

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

 

CHARLOTTE, N.C. – Two Cornelius, North Carolina residents are facing federal charges in connection with a multi-million dollar investment scheme, announced Dena J. King, U.S.  Attorney for the Western District of North Carolina. A federal grand jury returned a criminal indictment this week against Marlin Hershey and Dana Bradley, both 52, charging them with mail and wire fraud conspiracy, mail fraud, securities fraud, and money laundering conspiracy. The indictment was unsealed this morning following Hershey’s appearance in court.

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

According to allegations contained in the indictment, from approximately 2009 to 2021, Hershey and Bradley induced dozens of victims to invest millions of dollars in unregistered securities offerings, promoted by the defendants through Performance Holdings and other entities controlled by the defendants and other individuals, including Performance Retire on Rentals, LLC, Distressed Lending Fund, LCC, Moteng Funding, LLC and Southeast Lot Acquisitions, LLC, among others.

The indictment alleges that the investment materials Hershey and Bradley provided to victim investors in connection with these securities offerings contained false and/or misleading statements and failed to disclose material information. For example, the indictment alleges that the offering materials failed to disclose that the defendants received commissions based on the amount of investments they sold, and often provided investors with offering materials that represented the opposite – that nobody would be paid a commission in connection with the investments. In fact, the indictment alleges, the defendants received commissions that were typically 10% of an investor’s initial investment and often received an additional commission when an investor extended an investment. In this manner, Hershey and Bradley were paid millions of dollars in undisclosed commissions from the sale of securities. In addition to the commissions, the indictment also alleges that the defendants received regular undisclosed “management” fees from the various entities.

According to allegations in the indictment, as part of the scheme, Hershey and Bradley also failed to disclose to investors other material information, including negative information about the defendants’ backgrounds and the financial woes faced by some of the entities for which they were soliciting investments. To the contrary, because the defendants often solicited the same group of investors to invest in the various projects, the defendants took steps to conceal such financial difficulties by making undisclosed loans to various entities so that the entities could, in turn, make their required interest payments to investors. The indictment also alleges that Hershey and Bradley solicited new investors and, contrary to representations they made to the investors, used the new investors’ money to repay the loans and previous investors. The defendants also allegedly sent to investors periodic reports about the status of the investments that failed to include material negative information.

According to the indictment, in 2019, investors learned that several of the projects in which they had invested were in financial distress and could no longer meet their obligations to investors, which totaled several million dollars. 

Hershey was released on bond following his court hearing. Bradley will have his first court appearance on Monday, April 25, 2022. The mail and wire fraud conspiracy charge and the mail fraud charge each carry a maximum prison term of 20 years and a $250,000 fine. The securities fraud charge carries a maximum prison term of 20 years and a $5 million fine. And the maximum prison term for money laundering conspiracy charge is 10 years and a $500,000 fine. 

The indictment also includes a notice of forfeiture, which gives notice that the defendants must forfeit to the United States all of the property involved in the offenses charged in the indictment. The government will pursue a forfeiture money judgment in the amount of at least $7.5 million which the government contends constitutes the proceeds of the violations alleged in the indictment.

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

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

Assistant U.S. Attorneys Daniel Ryan and Graham Billings, of the U.S. Attorney’s Office in Charlotte, are in charge of the prosecution.

ASHEVILLE, N.C. – Today, Chief U.S. District Judge Martin Reidinger sentenced James Julius Lumpkin, of Sevierville, Tennessee, to 156 months in prison and five years of supervised release for drug trafficking, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

U.S. Attorney King is joined in making today’s announcement by Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Asheville Post of Duty, Jamaal Thompson Commander of the U.S. Marshals Service Carolinas Regional Fugitive Task Force, and Sheriff Chip Hall of the Jackson County Sheriff’s Office.

According to filed court documents and the sentencing hearing, in November 2020, the U.S. Marshals Service Carolinas Regional Fugitive Task Force learned that Lumpkin, a fugitive with outstanding arrest warrants in Georgia for trafficking narcotics, was located in Jackson County. Law enforcement learned that Lumpkin was staying at a local motel in Cullowhee, North Carolina, and proceeded to plan the arrest. On November 6, 2020, a team of federal and local law enforcement arrested Lumpkin while he was sitting in his van at the motel parking lot. At the time of the arrest, law enforcement seized from the van multiple plastic bags containing methamphetamine, digital scales, two loaded firearms, and ammunition. Law enforcement also recovered at the scene marijuana and prescription opioid pills.

On November 1, 2021, Lumpkin pleaded guilty to possession with intent to distribute methamphetamine, marijuana and Hydrocodone. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney King credited the U.S. Marshals Service Carolinas Regional Fugitive Task Force, the DEA’s Asheville Post of Duty and the Jackson County Sheriff’s Office for the investigation of this case.

Assistant United States Attorney Thomas Kent, of the United States Attorney’s Office in Asheville, prosecuted the case.

Charlotte, N.C. Today, U.S. Attorney Dena J. King announced the filing of a federal civil complaint seeking the forfeiture of $597,891.46, seized as part of an investigation of at least three individuals operating as money mules responsible for transferring over $1.2 million in funds stolen from a business located in San Diego, California.

Reginald DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.

A money mule is a person who, at the direction of another individual or criminal organization, transfers illicit funds typically acquired through fraud. Sometimes money mules are innocent victims unaware they are implicated in criminal activity. Other times, money mules maybe aware, or come to realize but ignore, that they are assisting a fraudster with illegal money movement activities.

“Money mules are quickly becoming the preferred method criminal networks use to transfer illicit funds. These networks, operating within the U.S. and overseas, target individuals online via romance scams, business scams, or otherwise, and turn them into money mules doing the criminals’ dirty work,” said U.S. Attorney King. “We are doing our part to cut off the flow of funds to criminal organizations, but we also need the public’s help in this effort. Be wary of anyone who contacts you online and asks you to use your bank account to move money. You could be putting in thieves’ pockets money stolen from victims of fraud.”

As alleged in the filed complaint, the U.S. Secret Service previously seized $597,891.46 from the account of Theresa Harlow, an elderly woman located in California. The complaint alleges that Harlow and at least two other individuals, identified in court documents as Money Mule 1, and Money Mule 2, allegedly moved the fraud proceeds through four different financial institutions and via multiple transactions involving checks and wires. The indictment further alleges that when law enforcement began investigating the movement of the money, the three money mules reported that they became involved when individuals reached out to them online about moving money and believed the purpose of the money transfers was to assist in business transactions and/or movement of an inheritance. In reality, as alleged in the complaint, the money the mules were moving belonged to a California business that had been defrauded.

In making today’s announcement, U.S. Attorney King thanked the U.S. Secret Service for their investigative work in this case.

Assistant United States Attorney Benjamin Bain-Creed of the United States Attorney’s Office in Charlotte is in charge of the civil proceedings.

To learn more about the Department of Justice’s Money Mule Initiative and to receive more information on how to protect yourself and others please visit: https://www.justice.gov/civil/consumer-protection-branch/money-mule-initiative

ASHEVILLE, N.C. – Clinton Douglas Cole, 55, of Caroleen, N.C., was sentenced to 24 months in prison and three years of supervised release today, for mailing threatening letters to a witness, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Martin Reidinger presided over the sentencing hearing.

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

According to filed documents and court proceedings, in October 2015, an individual witnessed the defendant set fire to a residence in Rutherford County. The defendant was convicted of state charges related to the arson and was sentenced to prison. Court documents show that in January 2020, while Cole was still serving time in prison for the state conviction, he mailed two threatening letters to the witness. In one letter, Cole reminded the witness of a previous threat he made to burn down the witness’s house. In a second letter, Cole wrote to the witness, “You are going to wish that you would not have stuck your nose were [sic] it did’nt [sic] belong,” and threatened to physically harm the witness and the witness’s child. On December 22, 2021, Cole pleaded guilty to mailing threatening communications.

The investigation was handled by USPIS. Assistant U.S. Attorney Alexis Solheim, of the U.S. Attorney’s Office in Asheville, prosecuted the case.

CHARLOTTE, N.C. – United States Attorney Dena J. King announced today the formation of a new Civil Rights Team within the U.S. Attorney’s Office, which will focus on prioritizing the enforcement of federal civil and criminal civil rights laws across Western North Carolina and enhance the Office’s presence in the community through increased education and community outreach efforts.

“Our role as federal prosecutors is to ensure that equal protection under the law is a reality for all people living in the Western District of North Carolina,” said U.S. Attorney King. “The Civil Rights Team was established to prioritize the investigation of potential violations of civil rights statutes, ensure that allegations of wrongdoing are thoroughly investigated, and bring criminal charges and civil enforcement actions when warranted. Communities thrive only when fairness and equality are a reality for all people, and everyone can have equal opportunities, live free from hate, exercise the right to vote without fear, have access to equal justice, and enjoy all the protections guaranteed by federal law. When those fundamental principles are threatened or violated, it is our duty to act.”

The Civil Rights Team comprises federal prosecutors and staff from the Office’s Criminal and Civil Divisions in Charlotte and in Asheville. U.S. Attorney King has appointed a Criminal Civil Rights Coordinator to lead the Team’s efforts in investigating and prosecuting criminal civil rights violations, including hate crimes, color of law violations, and human trafficking cases. U.S. Attorney King also appointed a Civil Civil Rights Coordinator, who is tasked with prioritizing civil enforcement actions related to discrimination in housing, lending, employment, and education and the protection of voting rights  and disability rights or access, among other areas. The team will continue to foster a strong relationship with the Justice Department’s Civil Rights Division and coordinate with other Department of Justice components and federal agencies as needed.

In addition to enforcement efforts, the Civil Rights Team will enhance the District’s multi-prong approach to advancing the protection of civil rights by focusing on public awareness and increasing the Office’s presence in the community through engagement, to encourage reporting of potential civil rights violations to the appropriate offices, agencies or components. The Team will also enhance its prevention efforts by working with state and local agencies, law enforcement, community groups, advocates, stakeholders and public and private entities to conduct proactive training to educate stakeholders on their rights and obligations under the law.

“Putting the enforcement of civil rights at the forefront of our priorities brings us a step closer to our nation’s founding ideals of equal justice and equal opportunity for everyone,” said U.S. Attorney King. “I’m looking forward to the work of our Civil Rights Team in this important area of the law and fulfilling the Justice Department’s responsibility of ensuring equal protection for all.”

ASHEVILLE, N.C. – Travis Shaqwann Fair, 32, of Asheville, was sentenced to 80 months in prison and three years of supervised release today for illegal possession of a firearm, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Fair’s girlfriend and co-defendant, Kourtney Nichelle Shivers, 29, of Asheville, was also sentenced to a probationary term of one year for straw purchasing Fair’s firearm.

U.S. Attorney King is joined in making this announcement by Brian Mein, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief David Zack of the Asheville Police Department (APD).

“Convicted felons who try to circumvent our gun laws and straw buyers who knowingly put guns in the hands of prohibited persons will be subject to federal prosecution,” said U.S. Attorney King. “Gun violence is a grave threat to our communities and we will hold accountable everyone involved in illegal firearm purchasing schemes.”

“Illegal firearm possession is a serious threat to public safety,” said Acting Special Agent in Charge Mein. “Removing firearms from the hands of dangerous and prohibited individuals, while also focusing on those who provide them with their firearms, will continue to be a top priority for ATF as we focus our efforts on creating safer communities.”

“The Asheville Police Department supports a citizen’s right to legally purchase and own a firearm,” said Chief Zack. “However, we fully intend to enforce existing gun laws and keep firearms out of the hands of felons and criminals. Stopping gun violence is a top priority of our department and partnering with other law enforcement agencies amplifies our efforts to keep our communities safe.”

According to court documents and court proceedings, on June 10, 2019, Fair visited a licensed firearms dealer in Asheville and consulted with a store employee about purchasing a “cheap” firearm. The store employee showed Fair several firearms, including a 9mm firearm, and Fair left the store shortly thereafter without making a purchase. According to court documents, a short while later, Fair’s girlfriend, Shivers, entered the same store and purchased the same firearm Fair had recently examined. Over the course of the transaction, Shivers falsely certified on the required forms that she was the actual buyer of the firearm, when, in reality, she was a straw purchaser who bought the handgun at Fair’s request and for his use. Court records show that Fair provided Shivers with the funds to purchase the firearm, which she agreed to do, even though Shivers was aware that Fair had prior convictions and was prohibited from possessing a firearm. Shivers later transferred the firearm to Fair.

Shivers previously pleaded guilty to making a false representation while buying a firearm. Fair pleaded guilty to possession of a firearm by a felon. Fair is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney King thanked the ATF and the Asheville Police Department for their investigation. The U.S. Attorney’s Office in Asheville prosecuted the case.

CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Laverne Jacobs, 30, of Charlotte, to 108 months in prison and three years of supervised release for possession of a firearm by a convicted felon, 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 Brian Mein, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD).

According to filed court documents and statements made in court, on June 28, 2020, a man called 911 and alerted dispatchers that Jacobs was in front of his house, that Jacobs threatened to shoot him in the head, and that he observed Jacobs putting bullets into a firearm. A CMPD officer dispatched to the scene heard gunshots while she was approaching the victim’s residence and saw Jacobs with a firearm in his hand. As the officer approached the defendant, he fled the scene and threw the firearm into the woods. CMPD officers apprehended Jacobs and recovered the firearm, which was loaded with one round of ammunition in the chamber. Officers also located two projectile holes in the victim’s residence. At the time of the shooting, there were three individuals inside the home. Over the course of the investigation, law enforcement determined that the firearm had been reported stolen.

Jacobs has multiple previous state convictions including robbery, breaking and entering, selling drugs, and assault on a female, and he is prohibited from possessing a firearm.

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

The investigation was handled by ATF and CMPD. Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.

 

 

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell handed down a 30-year sentence to the leader of a drug and money laundering organization operating across the Carolinas, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Kenneth D. Bell ordered Jared Shemaiah Jones, 39, of Alpharetta, Georgia, to serve five years of supervised release.

U.S. Attorney King is joined in making this announcement by Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte; Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina; and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI).

According to filed documents and court proceedings, between 2014 and September 2020, the drug conspiracy trafficked approximately 1,000 kilograms of cocaine from California into North Carolina and South Carolina and laundered the criminal proceeds. During the investigation, law enforcement seized 30 kilograms of cocaine, one kilogram of heroin, and approximately $500,000 in cash. Jones previously pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, money laundering conspiracy, and possession with intent to distribute cocaine.

In handing down Jones’s sentence, Judge Bell noted that, in addition to harming substance users, Jones also recruited several people into the conspiracy who, but for his influence, would have lived law-abiding lives.

Judge Bell previously sentenced Jones’s co-defendants as follows:

• Jasneko Marquell Wright, 35, of Newberry, S.C., was sentenced to 120 months in prison, followed by five years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine and money laundering conspiracy.
• Joel Mark Walker, 36, of Columbia, S.C., was sentenced to 84 months in prison, followed by two years of supervised release, for money laundering conspiracy.
• Jarmel Brownlee, 31, of Charlotte, was sentenced to 60 months in prison followed by four years of supervised release for conspiracy to distribute and to possess with intent to distribute cocaine and money laundering conspiracy.
• Nathasha Lawes, 33, of Clover, S.C., was sentenced to 36 months in prison, followed by two years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine and possession with intent to distribute cocaine.
• Phonesavanh Phonesavang, 39, of Charlotte, was sentenced to 36 months in prison, followed by three years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine and possession with intent to distribute cocaine.
• Marlaina Nashae Smoot, 27, of Newberry, S.C., was sentenced to 24 months in prison, followed by three years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine.
• Judiet Vontella Cooper, 36, of Charlotte, was sentenced to a year and a day in prison followed by two years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine, money laundering conspiracy, and possession with intent to distribute heroin.
• Marquita Andrea Hunter, 48, of Columbia, was sentenced to a year and a day in prison, followed by two years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine.

Jervonta Antonio Walker, 39, of Los Angeles, California, has pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, money laundering conspiracy, and possession with intent to distribute cocaine, and is currently awaiting sentencing.

An additional defendant indicted in this case, Yannick Anderson, 26, of New York, is charged with conspiracy to distribute and to possess with intent to distribute cocaine, money laundering conspiracy, three counts of possession with intent to distribute cocaine, possession of firearm in furtherance of drug trafficking, and possession of firearm by felon, and remains a fugitive.

Today’s lengthy sentence stems from an investigation led by one of the Western District of North Carolina’s Organized Crime Drug Enforcement Task Force (OCDETF). 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 DEA, USPIS, HSI, and IRS, as well as the U.S. Bureau of Alcohol Tobacco and Firearms (ATF), the National Insurance Crime Bureau, the Charlotte-Mecklenburg Police Department, the Rowan County Sheriff’s Office, the Rock Hill Police Department, the North Carolina Department of Motor Vehicles, the South Carolina Law Enforcement Division (SLED), the Lexington County, S.C., Sheriff’s  Department, the Richland County, S.C., Sheriff’s Department, the York County, S.C., Sheriff’s Office, and the City of Columbia, S.C., Police Department for their investigative efforts.

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

CHARLOTTE, N.C. – Martin Lee McGee, 32, of Morganton, N.C., was sentenced to 160 months in federal prison today for transporting child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term, McGee was ordered to serve a lifetime of supervised release, to register as a sex offender, and to pay a $100 special assessment, a $5,000 Justice for Victims of Trafficking Act (JTVA) assessment, and a $35,000 Amy, Vicky, and Andy Child Pornography Victim Assistance Act (AVAA) assessment.

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

According to court records and today’s sentencing hearing, in April 2020, law enforcement were alerted to an individual, later identified as McGee, using Snapchat to upload child pornography. Law enforcement executed search warrants at McGee’s residence and Snapchat account. A forensic analysis of the seized devices and information revealed that McGee possessed more than 13,500 images and videos depicting the sexual abuse of children. Some of the child pornography in McGee’s extensive collection depicted minors as young as toddlers engaging in sadistic and masochistic conduct.   

On October 6, 2021, McGee pleaded guilty to transportation of 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 commended the FBI and the Newton Police Department for their investigation of the case, and thanked the Catawba County Sheriff’s Office for their assistance.

Assistant United States Attorneys Cortney Randall and Nick J. Miller prosecuted the case.

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

 

CHARLOTTE, N.C. – Carlos Car’tre Ikard, 26, of Hickory, N.C., was sentenced to 60 months in prison and three years of supervised release for possession of a firearm in furtherance of a drug trafficking crime, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell presided over today’s sentencing.

U.S. Attorney King is joined in making today’s announcement by Brian Mein, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Thurman Whisnant of the Hickory Police Department.

According to filed documents and court proceedings, on July 13, 2020, while Ikard was on post-release supervision with the State of North Carolina, he began posting images on his Snapchat account in which he was possessing multiple firearms. The next day, law enforcement located Ikard in a vehicle parked at his residence in Hickory. Law enforcement seized from the vehicle three firearms, one of which was stolen, Oxycodone pills, and marijuana. Law enforcement also executed search warrants for Ikard’s Snapchat account and cell phone, which contained images of Ikard with the seized firearms and messages in which Ikard arranged drug sales.

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

The investigation was led by the ATF and the Hickory Police Department, with the assistance of the North Carolina Department of Public Services, Division of Community Corrections.

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

ASHEVILLE, N.C. – Jonathan Leslie Carver, 27, of Nebo, N.C., was sentenced to 360 months in federal prison today for the production of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Carver’s prison sentence will be followed by a lifetime of supervised release and he will also be required to register as a sex offender.

Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Sheriff Ricky T. Buchanan of the McDowell County Sheriff’s Office join U.S. Attorney King in making today’s announcement.

“Carver harmed a child for his sexual gratification and shared the abuse online,” said U.S. Attorney King. “I commend our law enforcement partners for their thorough investigation of this case. The evidence gathered helped put this predator behind bars where he belongs.”

“Stopping those who prey on the innocence of children is one of the most important missions HSI has,” said Special Agent in Charge Martinez. “Whenever one of these images is shared or viewed it victimizes an innocent child all over again. We will continue to focus the full resources of HSI on investigating and holding accountable those who engage in this type of horrific activity.”

“Another successful collaborative effort with our federal partners bringing a child predator to justice,” stated Sheriff Buchanan. “We should always do all we can to protect our children and keep them safe.”

On September 1, 2021, Carver pleaded guilty to using a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of the conduct. According to court records, in November 2020, HSI was notified that an individual with the screen name “Johnnybegood115,” later identified as Carver, was using the Kik social media messaging application to create and distribute child pornography. In December 2020, law enforcement issued a search warrant for Carver’s Kik account. A forensic analysis of the information obtained revealed that Carver had produced images and videos of himself sexually abusing an infant and used his Kik account to distribute the child pornography online.

The case was investigated by HSI and the McDowell County Sheriff’s Office.

Assistant United States 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 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. – Christopher Michaud, 43, of Chesterfield, South Carolina, was sentenced to 147 months in prison and three years of supervised release today on robbery and firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

U.S. Attorney King is joined in making today’s announcement by Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief J. Bryan Gilliard of the Monroe Police Department.

According to court documents and today’s sentencing hearing, between January and April 2020, Michaud robbed three pharmacies and illegally obtained large amounts of prescription opioids and other controlled substances. In two of the robberies, Michaud brandished a firearm. The first robbery occurred on January 26, 2020, during which Michaud walked into the Walgreens pharmacy located at 500 Fincher Street in Monroe, North Carolina, and handed a note to the pharmacy clerk. The note stated that Michaud had a gun and instructed the clerk to hand over specific prescription opioids. The clerk complied and Michaud fled the scene with various prescription medications including Oxycodone pills, generic Xanax pills, and Methadone pills.

On March 4, 2020, Michaud robbed the CVS pharmacy located at 625 East Roosevelt Boulevard in Monroe. Michaud entered the pharmacy at approximately 6:15 p.m. and gave a note to the clerk demanding certain prescription medications and threatening to come back and shoot everyone. During the robbery, Michaud flashed a small handgun at the clerk and demanded that the clerk “make it quick.” The clerk handed Michaud a bag with prescription drugs and Michaud left the store. The third robbery occurred on April 2, 2020, during which Michaud robbed the Walgreens located at 1993 Dickerson Boulevard in Monroe. Once again, Michaud handed the pharmacy clerk a note demanding prescription narcotics and flashed a handgun. The clerk complied, but during the robbery another store employee called 911 to report the incident. Officers with the Monroe Police Department arrested Michaud as he exited the pharmacy. At the time of the arrest, law enforcement recovered the stolen prescription medications and the pistol that Michaud used during the robbery.

On June 23, 2021, Michaud pleaded guilty to three counts of robbery of a business affecting interstate commerce, or “Hobbs Act” robbery, and one count of possession of a firearm during and in relation to a crime of violence.

Michaud 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 this announcement, U.S. Attorney King thanked the FBI and the Monroe Police Department for their investigation of the case.

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

CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Alberto Manuel Lara-Zuniga, 46, of Mexico, to 108 months in prison and five years of supervised release for conspiracy to distribute and to possess with intent to distribute methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

According to court documents and today’s sentencing hearing, from December 2020 to February 2021, Lara-Zuniga conspired to distribute narcotics in the greater Charlotte area, as well as trafficked in illegal firearms. Over the course of the investigation, law enforcement determined that Lara-Zuniga obtained methamphetamine and cocaine from Mexico for distribution into North Carolina through his ties to Sinaloa and Nayarit Cartels in Mexico. Court documents also show that the narcotics were transported into North Carolina through Georgia and California. 

Lara-Zuniga 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 this announcement, U.S. Attorney King thanked ATF, HSI and CMPD for their investigation.

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

CHARLOTTE, N.C. – A drug investigation led by the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF) has resulted in the indictment of six members of a poly-drug trafficking organization (DTO), announced United States Attorney Dena J. King.

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

The indictment was returned on March 16, 2022, and was unsealed today after ATF and DEA agents and CMPD officers arrested five of the six men during an early morning round-up. The defendants named in the indictment are:

• Laricco Eugene Sherrill, Jr., 23, of Charlotte (arrested)
• Brian Clinton, 23, of Charlotte (arrested)
• Jakieran Harris, 22, of Charlotte (arrested)
• Sadarian Armstrong, 40, of Charlotte (arrested)
• Quentin Nathaniel Stowe, 27, of Charlotte (arrested)
• Marquez Maxwell, 22, of Charlotte (not arrested).

According to allegations contained in the indictment, beginning as early as January 2020, the DTO distributed fentanyl, methamphetamine, cocaine, cocaine base, and marijuana in Mecklenburg County and elsewhere. Over the course of the investigation law enforcement seized narcotics, firearms, ammunition, and over $63,650 in cash that is believed to be drug proceeds.

Each defendant is charged with conspiracy to distribute and to possess with intent to distribute narcotics and related drug offenses.

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

In making today’s announcement U.S. Attorney King credited the ATF and CMPD’s OCDETF investigation which led to the indictment and thanked the DEA for their invaluable assistance in effectuating the arrests. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF program can be found at https://www.justice.gov/OCDETF.

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

 

ASHEVILLE, N.C. – Elenilson Ceron, 25, of Newland, N.C., was sentenced today to 26 months in prison for using stolen identification documents to commit bank fraud and aggravated identity theft, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Martin Reidinger also ordered Ceron to serve two years under court supervision after he is released from prison.

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

According to filed documents and today’s court proceedings, in November 2019, Ceron and his co-defendant, Jennifer Pardo, engaged in a scheme to defraud financial institutions by securing loans in the names of identity theft victims. Ceron and Pardo obtained the victims’ personal identifying information (PII) through personal checks, credit cards, medical documents, and other sensitive information the defendants stole from the victims’ mailboxes, homes, and vehicles, or the home computers of friends and family members. Using the stolen PII, the pair opened bank accounts and credit accounts and took out personal loans in the victims’ names.

In this manner, court records show that the defendants obtained at least $6,500 in unlawful proceeds.

Ceron and Pardo pleaded guilty to bank fraud and aggravated identity theft. Pardo was previously sentenced to 30 months in prison for her role in the scheme.

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

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

CHARLOTTE, N.C. – A federal jury in Charlotte has returned a verdict against Malcom Bynum, for fraudulently transferring a piece of property to a relative in violation of the Federal Debt Collection Procedures Act (FDCPA), to avoid paying restitution owed to victims of his criminal conduct, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney presided over the two-day civil trial.

The FDCPA prevents individuals who owe debts to the United States from improperly transferring properties and other assets in order to avoid paying their debt obligations, including court-ordered criminal restitution to victims.

On January 22, 2021, the United States filed a federal civil lawsuit against Tico Bynum, Malcolm Bynum, and Donald Bynum for violating the FDCPA. According to the civil complaint, Tico Bynum fraudulently transferred the property located at 1344 Downs Avenue to his son, Malcolm Bynum, to avoid his debt obligations, specifically, $221,818.98 in restitution payments owed to victims of his crimes. On February 22, 2022, Judge Whitney ruled that Tico Bynum’s transfer of the property to his son was indeed fraudulent.

According to information contained in the civil suit and evidence presented at Malcolm Bynum’s civil trial, Malcolm Bynum also transferred the same property to his grandfather, Donald Bynum, to avoid his own debt of $169,923.24, which included both restitution to victims of his crimes, and special assessments. Trial evidence established that Malcolm Bynum signed a quitclaim deed transferring 1344 Downs Avenue to his grandfather, shortly before Malcom Bynum was indicted for multiple violations of federal criminal statutes, including conspiracy to commit bank and wire fraud, financial institution fraud, and aggravated identity theft. The evidence at trial further demonstrated that, as part of his plea agreement with the government, Malcolm Bynum agreed to make full restitution and pay back his victims for certain losses incurred as a result of his crimes. According to trial evidence, the day before Malcolm Bynum signed the plea agreement, the quitclaim deed was recorded with the Mecklenburg County Register of Deeds, effecting the transfer of the 1344 Downs Avenue to his grandfather. The deed reflected that Donald Bynum did not pay any consideration to Malcolm Bynum in exchange for the property, which, at the time of transfer, had a tax value of $207,900. As part of his sentence for the criminal case, Malcolm Bynum was ordered to pay restitution and penalties totaling $169,923.24 to his victims. On Tuesday, March 22, 2022, a federal jury found that the property transfer was a violation of the FDCPA.

Next, the Court will determine the appropriate statutory relief, which may include the avoidance or voiding of the property transfers and the issuance of a writ of execution on the property, to satisfy the restitution judgments stemming from the criminal convictions.

“Time and again, the Bynums have tried to dodge their financial obligations to crime victims and thwart the United States’ efforts to enforce court-ordered judgments. But the proverbial buck stops here,” said U.S. Attorney King. “Collection on federal debts – and particularly restitution judgments entered for the benefit of crime victims – remains a priority for my Office.” 

In making toay's announcement, U.S. Attorney King commended the Office's Financial Litigation Unit for their investigation of the case.

The Financial Litigation Unit enforces collection of criminal restitution, fines, and other monetary penalties ordered as the result of criminal convictions, as well as civil debts owed to the United States. Funds collected for restitution are disbursed directly to the victims of the crime identified in the criminal judgment. Criminal fines go to the National Crime Victims Fund, which disburses grants to various victims’ groups across the country.

Assistant U.S. Attorneys Julia Wood and Katherine Armstrong of the U.S. Attorney’s Office in Charlotte handled the civil action.

 

CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn Jr. sentenced Jalon Carlos Torres, 43, of Boynton Beach, Florida, to 27 months in prison for cyberstalking and making interstate threats, 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 documents and today’s court proceedings, from July 2020 to February 2021, Torres used various means of communication to cyberstalk a bank employee and her husband. The cyberstalking began after the bank employee, identified in documents as Jane Doe, informed Torres that his bank account would be closed due to unauthorized activity. Over the next eight months after the initial communication with Torres, the victim and her family endured a campaign of constant harassment and intimidation by the defendant, through dozens of telephone calls, voice mails, and text messages. These communications contained explicit and implicit threats to harm Jane Doe, her husband and her children, racial slurs, racist imagery including Nazi symbols, and pornographic imagery.

On October 1, 2021, Torres pleaded guilty to cyberstalking and two counts of making interstate threats. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

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

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

                                   

CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has returned a criminal indictment against Spenc’r Denard Rickerson, 35, of Claremont, N.C., charging him with wire fraud and bank robbery offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The indictment was returned on March 15, 2022, and was unsealed today following Rickerson’s arrest on Monday. 

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

According to allegations in the indictment, between June 30, 2020, and March 20, 2021, Rickerson used false information to apply for a Paycheck Protection Program (PPP) loan and multiple Economic Injury Disaster Loans (EIDL) guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

To obtain the PPP loan, the indictment alleges that Rickerson submitted a fraudulent application for a non-existent company that contained a number of falsehoods, including the purpose of the loan and the company’s payroll costs. The indictment also alleges that Rickerson submitted fraudulent applications for several loans under the EIDL program, in which he provided fake information about the number of company employees and gross revenues. As a result of the fraudulent PPP and EIDL loan applications, Rickerson allegedly received over $74,200 in fraudulent funds intended to assist businesses impacted by the coronavirus pandemic.

In addition to the fraudulent loan scheme, according to allegations in the indictment, on March 18, 2021, Rickerson committed an armed robbery of a BB&T Bank located at 12 North Main Avenue, in Newton, N.C. Rickerson allegedly used the stolen funds from the fraudulent loan scheme and the bank robbery to pay bills and to buy cryptocurrency.

Rickerson remains in federal custody. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The maximum statutory penalty for the bank robbery offense is 25 years and a $250,000 fine.

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

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

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

CHARLOTTE, N.C. – A federal jury in Charlotte convicted two men today for the submission of fraudulent loan applications seeking more than $1.7 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief and Economic Security (CARES) Act, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.  

U.S. Attorney King is joined in making today’s announcement by Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service, Atlanta Division; Special Agent in Charge Donald “Trey” Eakins of IRS Criminal Investigation (IRS CI), Charlotte Field Office; and J. Russell George, Treasury Inspector General for Tax Administration (TIGTA).

According to evidence presented during a six-day trial, Izzat Freitekh, 55, of Waxhaw, North Carolina, and his son Tarik Freitekh, aka Tareq Freitekh, 33, whose last known residence was in Glendale, California, obtained $1.7 million in fraudulent proceeds obtained by submitting multiple fraudulent PPP loan applications for companies owned by Izzat Freitekh: La Shish Kabob, La Shish Kabob Catering, Green Apple Catering, and Aroma Packaging. The loan applications misrepresented the number of employees and payroll expenses. After obtaining the fraudulent loan proceeds, defendants engaged in unlawful monetary transactions with the proceeds of the scheme, including making $30,000 payments to family members.

“The wicked borrow and do not repay, but in the Freitekhs’ case they also lie to cover up the fraud,” said U.S. Attorney King. “This father and son duo exploited a national emergency for their own benefit, then tried to obstruct justice to avoid punishment. A federal jury saw through their criminal shenanigans and now the Freitekhs will be held accountable for their actions. Protecting important taxpayer-funded programs remains a priority for my office, and together with our law enforcement counterparts we will continue to identify and prosecute those who exploit these programs for their own profit.”

“The CARES Act was intended to help people and businesses harmed by the pandemic, not to line the pockets of greedy individuals. The U.S. Postal Inspection Service will continue to work with our partners to hold accountable those who lie and cheat the government out of money to enrich themselves,” said Inspector in Charge Coke.

“While businesses were suffering and doing their best to make it through the pandemic, others chose greed,” said Special Agent in Charge Eakins. “IRS CI will continue to utilize its financial expertise to follow the money and recommend the prosecution of criminals taking advantage of a crisis.”

“Today’s results demonstrate the commitment of the Treasury Inspector General for Tax Administration to investigate and bring to justice those who attempt to corruptly interfere with federal tax administration,” said Inspector General George. “We appreciate the work of the U.S. Attorney’s Office and our law enforcement partners to ensure this criminal activity is held to account.”

Izzat Freitekh was convicted of one count of conspiracy to commit money laundering, three counts of money laundering, and one count of making false statements. He faces up to 10 years in prison for conspiracy to commit money laundering, 10 years in prison for each of the money laundering counts, and five years in prison for the false statements count.

Tarik Freitekh was convicted of one count of conspiracy to commit wire fraud, one count of bank fraud, one count of conspiracy to commit money laundering, one count of money laundering, and one count of falsifying and concealing material facts. He faces up to 30 years in prison for the bank fraud count, 20 years in prison for the wire fraud and money laundering conspiracies, 10 years in prison for the money laundering count, and five years in prison for the falsifying material facts count.

A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Law enforcement previously obtained and executed seizure warrants for over $1.3 million in proceeds of the fraud, held in various accounts. The seized money was administratively forfeited by the federal government prior to the trial.

The US Postal Inspection Service, IRS-CI, and TIGTA investigated the case.

Trial Attorneys Joshua N. DeBold and Matt Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark Odulio of the Western District of North Carolina prosecuted the case. Assistant U.S. Attorney Benjamin Bain-Creed of the U.S. Attorney’s Office Civil Division is in charge of the forfeiture proceedings.

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

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

CHARLOTTE, N.C. – A federal grand jury has returned a criminal indictment charging Nkhenge Shropshire, 48, of Charlotte, with wire fraud conspiracy, for allegedly submitting fraudulent loan applications to the U.S. Small Business Administration (SBA) to obtain COVID-19 relief loans, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

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

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

Court records show that, in 2014, Shropshire was convicted of filing false tax returns and lying on a loan application and was sentenced to 33 months in prison and five years of supervised release. Shropshire was on federal supervised release when she allegedly participated in the EIDL fraud scheme. She is currently in federal custody and will have her initial appearance in federal court in Charlotte.

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

In making today’s announcement, U.S. Attorney King commended USPIS for their investigation that led to today’s charges.

Assistant United States Attorney Matthew Warren, 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 need the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (NCDF) at (866) 720-5721 or file an online complaint. Complaints filed will be reviewed by the NCDF and referred to federal, state, local or international law enforcement or regulatory agencies for investigation. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.

CHARLOTTE, N.C. – A Charlotte business owner is facing federal charges for allegedly selling stolen Apple iPhones (iPhones) and other electronic devices overseas, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. A federal criminal indictment charges Rami Mahmod Mhana, 45, of Charlotte, with four counts of transportation of stolen goods.

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, Mhana was the owner of Wireless City Fashions, Inc. (Wireless City) and Protocol Business Group Inc. (Protocol), located at 441 Bradford Drive in Charlotte. The indictment alleges that, from at least May 2017 through October 2019, Mhana purchased hundreds of fraudulently obtained iPhones and other electronic devices which he sold and shipped overseas to the United Arab Emirates (the U.A.E.) and the Hong Kong Special Administrative Region of the People’s Republic of China (Hong Kong). The indictment also alleges that Mhana knew these devices were stolen or was willfully blind to the fact.

As alleged in the indictment, Mhana obtained the stolen devices from multiple “boosters.” A booster is a person who steals goods and products and sells them for profit. The indictment further alleges that Wireless City and Protocol were known to boosters as places they could sell stolen devices for cash with no questions asked. Mhana allegedly provided his employees with a price list of how much they should pay for certain iPhones and other electronic devices, but generally Mhana paid more for new or unlocked devices. Over the course of the scheme, Mhana allegedly sold thousands of dollars in stolen iPhones and devices to overseas buyers.

Mhana will be ordered to appear on a summons for his initial appearance, which will be scheduled in federal court in Charlotte. If convicted, Mhana faces a maximum of 10 years in prison and a $250,000 fine for each count of transportation of stolen goods.

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

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 Michael E. Savage and William Bozin of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.

 

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today the civil forfeiture and return of cryptocurrency worth hundreds of thousands of dollars that was stolen from an older adult victimized by a government imposter scam. This is the latest public legal action by the U.S. Attorney’s Office in its ongoing efforts to combat fraudsters seeking to financially exploit the elderly.

According to allegations contained in the civil complaint, in August 2021, fraudsters likely operating from overseas contacted by telephone the victim, who is an elderly Asheville resident, claiming to be with the “Office of the Inspector General.” The fraudsters deceived the victim into believing his personal information had been used to facilitate a drug trafficking and money laundering scheme, and as a result all of the victim’s assets would be frozen. One of the imposters, who identified himself as Agent James Hoffman, told the victim that he was required to deposit funds into a secure government account until the government verified that the victim was not involved in criminal activity. The imposters further demanded all of the victim’s personal identifying information (PII) and details regarding his financial accounts.

According to the filed complaint, the imposters directed the victim to use hundreds of thousands of dollars of his retirement funds to purchase Bitcoin through Coinbase Global, Inc. (Coinbase). On August 31, 2021, 12.164699 Bitcoin, worth approximately $574,766, was transferred from the victim’s Coinbase account to the account controlled by the imposters. Coinbase and the FBI ultimately identified the transfer as possible elder financial fraud. Following an investigation and successful civil forfeiture proceedings, the seized cryptocurrency was forfeited to the United States and will be returned to the victim.

“Government imposter scams are pervasive and can be financially and psychologically devastating for those who fall prey. Thankfully, in this instance, the fraud was detected quickly and the stolen funds will be returned to the victim. Unfortunately, the majority of these cases do not share a similar ending,” said U.S. Attorney King. “Law enforcement and federal prosecutors will continue to use all tools at our disposal to make sure that thieves do not get to keep criminal proceeds, but public awareness and education remain key, especially when it comes to protecting older adults from becoming victims. I urge everyone to learn how to spot imposter scams and help warn others.”

In making today’s announcement, U.S. Attorney King commended the FBI for its work in this case and thanked cryptocurrency exchanges and entities and financial institutions operating in the Western District of North Carolina for their cooperation and ongoing efforts to detect and report financial fraud.

Assistant U.S. Attorney Benjamin Bain-Creed, of the U.S. Attorney’s Office in Charlotte, handled the civil forfeiture proceedings and Trial Attorney Jane Lee of the Department of Justice’s Money Laundering and Asset Recovery Section assisted with remitting the assets to the victim.

The U.S. Attorney’s Office, through its Elder Justice Initiative, continues to combat financial fraud against older Americans by expanding efforts to investigate and prosecute financial scams that target seniors, educate older adults on how to identify scams and avoid becoming victims of financial fraud, and promote greater coordination with law enforcement partners.

Some examples of financial scams targeting seniors are:

• Lottery phone scams – Scammers persuade seniors that a large fee or taxes must be paid before they can receive lottery winnings.

• Grandparent scams – Scammers convince seniors that their grandchildren are in trouble and need money to pay rent, repair a car, or make bail.

• Romance scams – Scammers lull victims into believing that they are in a romantic relationship and that the scammers need money to travel to the U.S. or for some other purpose.

• IRS or government imposter scams – Scammers pose as IRS or other government officials claiming that the victims owe the government money.

• Sham business opportunities – Scammers convince victims to invest in lucrative business opportunities or investments.

Many of these schemes involve not only scammers stealing money from seniors but also using seniors as unwitting financial “money mules” to transfer criminal proceeds stolen from other fraud victims.

To avoid falling victim to a financial scam:

• Don’t share personal information with anyone you don’t know.

• Don’t pay a fee for a prize or lottery winning.

• Don’t click on pop-up ads or messages.

• Delete phishing emails and ignore harassing phone calls or texts.

• Don’t send gift cards, checks or money orders, wire money, make cryptocurrency payments or give your bank account information to a stranger.

• Don’t fall for a high-pressure sales pitch or a lucrative business deal.

• If a scammer approaches you, take the time to talk to a friend or family member.

• Keep in mind that if you send money once, you’ll be a target for life.

• Remember, it’s not rude to say, “NO.”

• A good rule of thumb is, if it’s too good to be true, it’s likely a scam.

If you have been contacted by a scammer or believe you have fallen victim to a scam please file a report with:

• The Justice Department’s Elder Fraud Hotline at 1-833-Fraud-11 (1-833-372-8311).
• The Federal Trade Commission (FTC) via their website or by calling 877–FTC–HELP (877-382-4357).
• The FBI, for law enforcement action at https://www.justice.gov/criminal-fraud/report-fraud.

The National Elder Fraud hotline was created for the public to report fraud against individuals who are age 60 or older. The hotline is open seven days a week. For more information about the hotline, please visit https://stopelderfraud.ovc.ojp.gov/.

 

CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad Jr. sentenced Joseph Antwan Faulk, 37, of Charlotte, to 138 months in prison and three years of supervised release for robbing a Metro T-Mobile at gunpoint, 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 Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement. 

According to filed documents and court proceedings, on December 7, 2020, Faulk entered the Metro T-Mobile store located at 2504 Little Rock Road in Charlotte. Upon entering, Faulk approached the counter, pointed a firearm at two store employees, and ordered them to hand over the cash from the registers. Faulk also threatened to shoot the employees if they did not do as he said. The employees complied and Faulk fled the scene with the store’s cash and the employees’ personal cell phones. CMPD officers were able to identify Faulk, and days later Faulk was located and arrested at a residence in Charlotte. Inside the residence, CMPD officers found the firearm Faulk used during the robbery. Faulk has four prior state convictions in North Carolina for Robbery With a Dangerous Weapon.

On July 7, 2021, Faulk pleaded guilty to robbery of a business affecting interstate commerce, or “Hobbs Act” robbery, and brandishing a firearm in furtherance of a crime of violence.

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

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

                       

CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad Jr. handed down lengthy prison sentences to two individuals convicted of drug trafficking in Gaston County, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Corey Dusean Edwards, 45, of Gastonia, N.C., was sentenced to 188 months in prison and five years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine and crack cocaine; possession with intent to distribute cocaine base; and possession of a firearm by felon. According to court documents and proceedings in this case, from 2018 to 2020, Edwards was responsible for trafficking more than a kilogram of crack cocaine in Gaston County. Over the course of the investigation, law enforcement seized cocaine and other drugs from Edwards’ residence, as well as a stolen firearm and $1,723 in cash. As a result of Edwards’s multiple prior drug convictions, the Court sentenced him as a career offender.   

In a separate case, Caleb O’Brian Kendrick, 31, of Gastonia, was also ordered to serve 188 months in prison, followed by five years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine and crack cocaine; two counts of possession with intent to distribute cocaine base; and possession of firearm by a felon. Court documents filed in this case show that, from 2016 to 2019, Kendrick was engaged in drug trafficking activities in Gaston County. Over the course of the investigation, law enforcement recovered from Kendrick’s residence narcotics and firearms, and evidence of his membership in the Bloods gang. At today’s hearing, the Court enhanced Kendrick’s term of imprisonment due to his prior convictions for, among other things, drug trafficking, armed robbery, burglary, kidnapping, and assault with a deadly weapon with intent to kill inflicting serious injury.

U.S. Attorney King credited today’s outcomes to investigations led by one of the Western District of North Carolina’s Organized Crime Drug Enforcement Task Forces (OCDETF), which have resulted in the conviction of more than 70 individuals, and the seizure of over 1,625 kilograms of crack cocaine, 561 kilograms of cocaine, more than 1,430 kilograms of methamphetamine, more than 210 kilograms of heroin, over 28 kilograms of fentanyl, 89 firearms, and more $290,000 in cash and other property. 

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

In making today’s announcement, U.S. Attorney King thanked the Federal Bureau of Investigation and the Gastonia Police Department for their investigative efforts.

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

 

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Keon Taylor, 31, of Charlotte, was sentenced to five years in prison and three years of supervised release for using stolen identities to defraud government-funded coronavirus aid relief programs of more than $219,000. In addition to the prison term imposed, Taylor was ordered to pay $252,849.50 in restitution.

U.S. Attorney King is joined in making today’s announcement by Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte, and Matthew Broadhurst, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Atlanta Region.

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 Economic Injury Disaster Loans (EIDL) program, which provides low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters.

According to the information to which Taylor pleaded guilty, other documents filed in this case and statements made in court, from March 2020 to February 2021, Taylor engaged in a scheme to defraud the U.S. Department of Labor (DOL), the U.S. Small Business Administration (SBA), the North Carolina Division of Employment Security, and the States of Tennessee, Texas, Ohio, Massachusetts, Nevada, and Arizona by filing fraudulent claims for COVID-19 related unemployment insurance (UI) benefits. As part of the scheme, Taylor obtained stolen personal identifying information, or PII, of more than 35 victims, including names, Social Security numbers, dates of birth, and addresses. Taylor used the PII to apply for and receive over $219,000 in fraudulent unemployment benefits, and to submit numerous additional applications seeking fraudulent UI benefits. Court documents show that Taylor also attempted to defraud the SBA by using false information to submit applications for three loans under the EIDL program set aside for businesses impacted by COVID-19.

Documents further show that in February 2021, federal agents executed a search warrant at Taylor’s apartment, seizing equipment used to manufacture fake identification cards. According to court records, Taylor continued to engage in fraudulent ID-making activities even after pleading guilty, which resulted in the revocation of his federal bond. 

“Taylor went on a crime spree, stealing taxpayer dollars from federal and state programs intended to help those in real need as a result of the coronavirus. In the process, he victimized individuals whose stolen identities were used to carry out the fraud. Taylor’s crimes are serious and now he has to endure the consequences. My office will continue to hold accountable those who seek to profit from the pandemic and exploit government benefits intended to help people impacted by COVID-19.”

“Taylor took advantage of the American people whose lives have been disrupted by the pandemic to try and enrich himself through fraud,” stated Inspector in Charge Coke. “The U.S. Postal Inspection Service will continue to work with our law enforcement partners to bring justice to criminals exploiting the American people.”

“Taylor defrauded the unemployment system of multiple states by fraudulently collecting over $219,000 in Pandemic Unemployment Assistance.  His conduct further exacerbated the distribution of unemployment benefits at a time when so many Americans are in desperate need of this assistance. We will continue to work with our law enforcement partners to protect the integrity of DOL programs,” said Acting Special Agent in Charge Broadhurst. 

On July 27, 2021, Taylor pleaded guilty to wire fraud and aggravated identity theft.

In making today’s announcement, U.S. Attorney King commended USPIS for their investigative efforts in this case. U.S. Attorney King also thanked DOL-OIG for their coordination and recognized the Charlotte-Mecklenburg Police Department for their assistance.

The prosecution for the government was handled by Assistant United States Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.  

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

CHARLOTTE, N.C. – Kyle Williamson Auten, 37, of Gastonia, North Carolina, was sentenced today to 180 months in prison and five years of supervised release on drug and gun charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Joseph D. Ramey of the Gaston County Police Department join U.S. Attorney King in making today’s announcement.

According to filed documents and today’s sentencing hearing, on February 17, 2020, officers with the Gaston County Police Department learned that Auten was staying at a hotel in Gastonia and had an outstanding arrest warrant. Officers effectuating the warrant arrived at Auten’s room, where they observed a firearm in plain view. In addition to the firearm, law enforcement recovered from the room narcotics, including methamphetamine and marijuana, cash, digital scales, and other drug paraphernalia. From Auten’s vehicle, law enforcement recovered a rifle, ammunition and more narcotics. Law enforcement also determined that the vehicle Auten was driving was stolen.

On June 1, 2021, Auten pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm by a convicted felon. Auten is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney King commended the ATF and the Gaston County Police Department for their investigation of the case and thanked the Rutherford County Sheriff’s Office for their invaluable assistance.

Assistant U.S. Attorney Christopher Hess prosecuted the case.

CHARLOTTE, N.C. – A former Charlotte attorney was sentenced today by U.S. District Judge Max O. Cogburn Jr. to 10 years in prison for the online enticement of a minor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.  Joshua Michael Reed, 32, 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.

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 court documents and today’s court proceedings, between February 10 and February 18, 2020, Reed used the Kik Messenger application to engage in multiple communications with an FBI undercover employee posing as a 13-year-old female. Court records show that during these communications Reed discussed his interest in engaging in sexual contact with the “minor” and tried to solicit a nude photograph from the minor. Reed also discussed making arrangements to meet the minor and told the minor they had to be careful or he could get into trouble because “older guys are not supposed to mess around” with girls the minor’s age.

On October 22, 2020, FBI agents executed a search warrant at Reed’s residence and seized numerous electronic devices. Reed’s laptops contained the aforementioned online Kik chats, as well as images depicting the sexual abuse of children. According to documents filed in the case, law enforcement also recovered previous online chats dating back to approximately five years between Reed and females who claimed to be minors, some as young as 13.

On June 8, 2021, Reed pleaded guilty to coercion and enticement of a minor. He is currently in federal custody and he will be transferred to custody of the Federal Bureau of Prisons upon designation of a federal facility. 

U.S. Attorney King commended the FBI for the investigation leading to the successful prosecution of Reed.

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

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

                                   

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that the U.S. Attorney’s Office is joining an array of government, non-profit and private organizations to raise public awareness about widespread and emerging scams during National Consumer Protection Week.

“National Consumer Protection Week is an opportunity to join forces with public and private agencies in amplifying the message against sinister scams and educating the public on how to identify scams and avoid falling prey to scammers,” said U.S. Attorney King. “The best way to protect yourself is to learn how to spot a scam and what to do if you are contacted by a scammer. We also encourage everyone to report suspected fraudulent schemes to help us track emerging scams and warn others.”

According to the Federal Trade Commission (FTC), in 2021, North Carolinians submitted more than 64,000 fraud reports totaling $93 million in losses, compared to $74 million in 2020. The top fraud categories reported involved imposters scams, online shopping, sweepstakes and lotteries, and internet services, among others.

Spotting the four signs of a scam can stop consumers from falling victims to one. The signs are:

1. Fraudsters pretend to be affiliated with a widely known organization, like a government entity, a law enforcement agency, a utility company, or a charity.
2. Scammers claim there is an imminent problem that requires immediate attention. For example, they claim you or a loved one are in legal or financial trouble, your computer has a virus, or your bank account has been locked.
3. You are pressured to act immediately, including to pay a fine or settle a debt to avoid arrest, pay for computer tech repairs to restore your data, log into your account using a provided link, or pay a fee in order to receive lottery winnings.
4. Scammers direct you to pay using a specific payment method, such as a gift card, a pre-paid debit card, a wire transfer, or an instant money transfer.

To avoid getting scammed consumers are encouraged to:

1. Ignore unknown callers and block unwanted numbers and text messages.
2. Do not open or respond to suspicious emails or click on suspicious links.
3. Do not give personal or financial information such as name, date of birth, Social Security Number, bank account, or credit card number.
4. Do not succumb to pressure tactics urging you to act immediately. Take your time to verify the source’s legitimacy and do your own research.
5. Do not pay using an unusual payment method such as wire transfers, instant money transfers, internet currency, or gift cards, and do not use your bank account to cash a check mailed to you.
6. If you think you’ve been contacted by a scammer talk to a trusted family member, a friend, or neighbor.

It is equally important that consumers do their part to help us identify existing or emerging scams and help warn others. If you are the victim of a scam or think you have been contacted by a scammer, report the fraud to your local law enforcement, and file a complaint with the Federal Trade Commission and the FBI’s Internet Crime Complaint Center at ic3.gov.

Visit NCWP for a list of events throughout the week and to obtain additional information on how to avoid scams.

CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn Jr. today sentenced a methamphetamine dealer to 120 months in prison, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Christian Allen Garcia, 30, of West Covina, California, was also ordered to serve five years of supervised release following his prison term. 

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

According to filed documents and statements made in court, in 2018, law enforcement identified Garcia as a member of a drug trafficking organization responsible for distributing bulk quantity of narcotics in Western North Carolina, including the greater Charlotte area. On March 27, 2018, law enforcement conducted a traffic stop of the vehicle where Garcia was a passenger and Garcia’s co-defendant, Henry Danny Collao, was the driver. Over the course of the traffic stop, law enforcement recovered nearly a kilogram of methamphetamine from the rear passenger seat. Law enforcement also found a loaded firearm in Garcia’s pants pocket and a second loaded gun in Collao’s right waistband. Officers also located within the vehicle different bank transaction receipts from various U.S. banks totaling over $75,000 in drug proceeds.

On July 8, 2021, Garcia pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. Collao was previously sentenced to 151 months in prison for his role in the drug trafficking scheme.

The investigation was handled by DEA and CMPD. Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Charlotte prosecuted the case.

 

CHARLOTTE, N.C. – U.S. District Judge Frank D. Whitney sentenced Jontez Xavier McLeod, 27, of Charlotte, to 141 months in prison today for carjacking and gun charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Judge Whitney also ordered McLeod to serve three years under court supervision after completing his prison term and to pay restitution to the victim of the carjacking.

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

According to filed court documents and the sentencing hearing, on the night of January 13, 2021, Jontez Xavier McLeod and his co-defendant, Ricky Lewis Bush, carjacked at gunpoint a female victim identified in court documents as C.K. Court records show that C.K. was exiting her vehicle which was parked at the parking lot of an apartment complex in Charlotte, when McLeod and Bush approached the victim. Bush pointed a firearm at the victim, and the two men grabbed the victim and pulled her from her vehicle.  McLeod and Bush then got into the victim’s car and fled the scene, leaving the victim in the parking lot.

According to court documents, CMPD officers located the victim’s car.  McLeod was driving the vehicle and Bush was in the front passenger seat. When officers attempted to stop the vehicle, the defendants sped off in an attempt to evade the police. CMPD officers eventually pulled over the vehicle and arrested the two men. Over the course of the investigation, law enforcement recovered several “selfie” videos from Bush’s cell phone, taken shortly before and after the carjacking. In one video the defendants are together prior to the carjacking and in a second video McLeod and Bush are together in the victim’s vehicle. In both videos, Bush is brandishing the same firearm used in the carjacking. 

On April 16, 2021, McLeod pleaded guilty to carjacking and aiding and abetting, and brandishing a firearm during and in relation to, and in furtherance of, a crime of violence. 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. Bush was previously sentenced to six and a half years in prison after pleading guilty to the same charges. 

The ATF and CMPD investigated the case. Assistant U.S. Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, handled the prosecution.

ASHEVILLE, N.C. – A Cherokee, N.C. man convicted of second degree murder by a federal jury was sentenced to 365 months in prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Shane McKinley Swimmer, 22, an enrolled member of the Eastern Band of Cherokee Indians, was also ordered to serve eight years of supervised release after he completes his prison term.

Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Josh Taylor of the Cherokee Indian Police Department join U.S. Attorney King in making today’s announcement.

According to filed court documents, trial evidence, and today’s sentencing hearing, on November 10, 2018, Swimmer and his uncle, Charles Ray “Chino” West, were at his uncle’s residence on Rocky Knob Trail in Swain County, which is within the Qualla Boundary. Trial evidence established that shortly before 7:00 p.m., Swimmer attacked his uncle with a baseball bat, striking the victim in the head multiple times. Following the attack, Swimmer went to another family member’s house nearby and announced that the victim was dead before calling 911. Officers with the Cherokee Indian Police Department arrested Swimmer shortly thereafter. According to witness testimony, the victim was struck between eight and 30 times and sustained massive brain injuries. The victim’s official cause of death was blunt force trauma to the head.

“Swimmer’s unprovoked and brutal attack caused the victim’s violent and untimely death,” said U.S. Attorney King. “I commend the FBI and the Cherokee Indian Police Department for their investigative efforts in this case, which led to today’s lengthy sentence.”

Swimmer remains 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 the FBI and the Cherokee Indian Police Department for their investigation of the case. 

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

 

CHARLOTTE, N.C. – U.S. District Judge Frank D. Whitney has ordered six defendants responsible for trafficking narcotics in Mecklenburg and Gaston Counties to serve prison terms ranging from seven to 25 years, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

The federal prosecutions are the result of investigations conducted by the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF), which focuses on disrupting and dismantling drug trafficking networks operating in Western North Carolina.

The charges the defendants were convicted of and the sentences they received are as follows:

• Dietrich O’Brian Sarratt, 37, of Gastonia, North Carolina, pleaded guilty on May 19, 2021, to conspiracy to distribute and possession with intent to distribute crack cocaine, possession with intent to distribute cocaine and crack cocaine, and possession of a firearm in furtherance of drug trafficking, and was sentenced on Tuesday to 300 months in prison and five years of supervised release.
• Daniel William Brock, IV, 35, of York, South Carolina, pleaded guilty on May 6, 2021, to conspiracy to distribute methamphetamine and was sentenced on Tuesday to 228 months in prison and five years of supervised release.
• Dakota Reese Davis, 34, of Maiden, North Carolina, pleaded guilty on April 21, 2021, to conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine and was sentenced on Tuesday to 144 months in prison and five years of supervised release.
• Christopher Dewayne Jenkins, 31, of Gastonia, North Carolina, pleaded guilty on April 7, 2021, to conspiracy to distribute methamphetamine and distribution of methamphetamine and was sentenced today to 120 months in prison and five years of supervised release.
• Chad Richard Tate, 51, of Cherryville, North Carolina, pleaded guilty on January 26, 2021, to conspiracy to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine and was sentenced on Tuesday to 120 months in prison and five years of supervised release.
• Mildred Marie Johnson Colon, 33, of Dallas, North Carolina, pleaded guilty on November 5, 2020, to conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine and was sentenced on Tuesday to 78 months in prison and three years of supervised release.

Since 2019, these OCDETF investigations have led to the federal prosecution of more than 60 individuals for drug trafficking, and law enforcement have seized more than 87 kilograms of narcotics, including over 24 kilograms of fentanyl, 66 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 Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the Lincoln County Sheriff’s Office, the Cleveland County Sheriff’s Office, the Huntersville Police Department, and the Gastonia Police Department for their investigative efforts.

Assistant United States Attorney Steven Kaufman, 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 Anthony Dwayne Turner Jr., 23, of Statesville, N.C. to 135 months in prison and three years of supervised release for robbing two convenience stores at gunpoint, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Turner’s co-defendant, Xavier Lamar Poteat, 21, also of Statesville, was sentenced to three years in prison and two years of supervised release for his role in the robbery.

Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Chief Ron Campurciani of the Mooresville Police Department, and Chief Josh Watson of the Troutman Police Department join U.S. Attorney King in making today’s announcement. 

According to court documents and today’s sentencing hearing, on October 9, 2020, at approximately 2:30 a.m., Turner and Poteat walked into a BP convenience store located in Iredell County. Upon entering, Turner walked up to the store clerk while Poteat waited by the door. Turner then pointed a firearm at the store clerk and demanded money. The store clerk emptied both registers, gave the money to Turner and the two men fled the scene. Court documents show that, on the same day at approximately 3:40 a.m., Turner and Poteat entered a Circle K convenience store also located in Iredell County. Poteat again waited by the front door while Turner approached the store clerk, pointed a gun at him and demanded cash from the register. The clerk obeyed and the two men fled the scene. Law enforcement responding to the robbery located Turner and Poteat’s vehicle and the two men were arrested shortly thereafter. Over the course of the arrest, law enforcement found two firearms inside the vehicle. According to court records, Turner has previous felony convictions and he is prohibited from possessing a firearm.

On October 21, 2021, Turner pleaded guilty to robbery of a business affecting interstate commerce, or “Hobbs Act” robbery, and use, carry and brandishing of a firearm in furtherance of a crime of violence. Poteat pleaded guilty to Hobbs Act robbery.

In making today’s announcement, U.S. Attorney King thanked the FBI, the Mooresville Police Department and the Troutman Police Department for their investigation.

Assistant U.S. Attorney Lambert Guinn of the U.S. Attorney’s Office in Charlotte prosecuted the case.

ASHEVILLE, N.C. – Rodney Dejuan Allison, 46, of Asheville, was sentenced in federal court late yesterday to 310 months in prison and eight years of supervised release on drug conspiracy charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

On April 2, 2019, a federal grand jury indicted Allison and seven other defendants on drug conspiracy charges following a two-year joint federal, state and local investigation into drug distribution and drug related criminal activity in Buncombe County. Court records show that Allison supplied the drug ring, which was operating in the Asheville area, with multiple controlled substances, including cocaine, crack cocaine, methamphetamine, heroin and other narcotics. Over the course of the investigation, law enforcement seized drugs, 12 firearms and ammunition, and $153,674 in cash.

In addition to Allison, seven other defendants have been sentenced after pleading guilty to drug conspiracy charges. They are:

• Prophet Karim Hadialim Allah – sentenced to 108 months in prison and five years of supervised release.
• William Luther Downs, Jr. – sentenced to 108 months in prison and five years of supervised release.
• Jeffrey Allen Wright – sentenced to 100 months in prison and five years of supervised release.
• Harry James Odum – sentenced to 72 months in prison and three years of supervised release.
• Elliot Norris Smith – sentenced to 60 months in prison and three years of supervised release.
• Derrick Maurice Perry – sentenced to 60 months in prison and four years of supervised release.
• Teresa Day Shuping – sentenced to 37 months in prison and three years of supervised release.

In making today’s announcement, U.S. Attorney King thanked the Drug Enforcement Administration, Homeland Security Investigations, the Asheville Police Department, the Buncombe County Anti-Crime Task Force, the Buncombe County Sheriff’s Office, the Black Mountain Police Department, and the Wilkes County Sheriff’s Office for leading the investigation. U.S. Attorney King also thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the North Carolina State Bureau of Investigation for their assistance in this case.

Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, prosecuted the case. 

CHARLOTTE, N.C. – A federal jury in Statesville has convicted Da Lee, 37, of Lawrenceville, Georgia, of trafficking methamphetamine and marijuana in Western North Carolina, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

According to filed court documents, trial evidence, and witness testimony, from 2018 to July 2020, Lee and his co-defendant, Paul Mark James, 52, of Hickory, North Carolina, conspired to distribute methamphetamine in and around Catawba County. Court records show that law enforcement investigating James’s drug distribution activities in Hickory determined that James frequently traveled out of state to purchase methamphetamine from his supplier in Georgia, later identified as Lee. According to trial evidence, in July 2020, law enforcement executed a search warrant at Lee’s Georgia residence, from which they seized a firearm, four pounds of marijuana, and more than $7,900 in cash. Trial evidence also established that, over the course of the conspiracy, Lee was responsible for supplying James with more than two pounds of methamphetamine.

The jury convicted Lee of conspiracy to distribute and to possess with intent to distribute marijuana and 50 grams or more methamphetamin, possession with intent to distribute marijuana, and possession with intent to distribute 50 grams or more of methamphetamine. James has pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute marijuana and 50 grams or more of methamphetamine, two counts of distribution of methamphetamine, and possession with intent to distribute marijuana and methamphetamine. Both Lee and James are awaiting sentencing.

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

Assistant United States Attorneys Chris Hess and Taylor Stout are prosecuting the case.

CHARLOTTE, N.C. – February is National Teen Dating Violence Awareness and Prevention Month (TDVAPM). U.S. Attorney Dena J. King was joined yesterday by representatives with Charlotte-Mecklenburg Schools and Mecklenburg County’s Community Support Services to host a discussion on the topic of youth violence, with a focus on teenage unhealthy and abusive relationships.

In observing TDVAPM, U.S. Attorney King said, “This year’s theme is ‘Talk About It’ and that is exactly what all of us should be doing. Engaging in conversations with teenagers about what teen dating violence is, what it looks like, what it feels like, how to prevent it from happening, and how young people can protect themselves from abusive dating situations.”

During yesterday’s discussion with more than 15 youths, U.S. Attorney King talked about the importance of teaching young people how to navigate romantic relationships, how to communicate their feelings in healthy ways, and how to handle emotional situations in a non-aggressive manner. The discussion also centered around the many forms of teen dating abuse such as physical, psychological, sexual, emotional and verbal aggression, harassment, stalking, and exploitation, and warned teens that dating abuse happens in person, via social media or through a different mode of technology.

U.S. Attorney King also highlighted the importance of reporting the abuse. According to statistics, one in three teens in the United States will experience a form of abuse from an intimate partner before adulthood. U.S. Attorney King further noted that teen dating violence cuts across lines of age, gender, race, religion and socioeconomic status, and that dating abuse is just as serious in LGBTQ+ relationships as it is in heterosexual relationships.

During the discussion, the participants discussed the role of social media and the intersection between technology and teen dating violence. “As technology advances and our means of communication change, so does the form of dating violence. Tweens, teens and young adults who are victims of cyber stalking, text messaging harassment, and cyber bullying are just as much in danger as victims of physical abuse,” U.S. Attorney King stated. “What’s equally significant is that the experience of violence, abuse and trauma in the formative years can change the trajectory of a young person’s life.”

As the misuse of technology is becoming an increasingly common tactic on the part of harmful partners, the Department of Justice’s Office on Violence Against Women (OVW) has shared a new resource funded by the OVW, the Teens and Technology Resource Series. The Teens and Technology resources aim to help adults who teach, work with, and care for teenagers understand technology from their perspective to empower teenagers to safely navigate relationships and technology use. These resources include examples of technology abuse, uses and misuses of social media applications, and five ways to engage with young people.

If you or someone you know is experiencing domestic violence, intimate partner violence, sexual violence, or stalking, there are many services available to help, including:

 Teen Dating Abuse Hotline, 1-866-331-9474, text ‘LOVEIS’ to 22522, or visit loveisrespect.org; 

• State, territory and tribal sexual assault and domestic violence coalitions, which can direct you to local resources and services, as well as opportunities to get involved; and
• The StrongHearts Native Helpline, which offers online chat on their website and a hotline – at 1-844-7NATIVE (or 1-844-762-8483) and provides culturally-appropriate services and advocacy to American Indian and Alaska Native survivors of domestic violence, intimate partner violence, and sexual violence.

To close out Teen Dating Violence Awareness and Prevention Month, on Monday, February 28, 2022, at 12:00 p.m. CST join @SAFEatx program Expect Respect for a youth-led workshop to learn more about the issue, how to support youth experiencing dating violence, & how to prevent it from happening. https://us02web.zoom.us/j/87664006352#success

CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn Jr. has sentenced Marcus Isaiah Curry, 39, of Gastonia, N.C., to 360 months in prison and eight years of supervised release on drug trafficking and firearms charges, 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 Charlotte, and Chief Travis Brittain of the Gastonia Police Department (GPD) join U.S. Attorney King in making today’s announcement.

According to filed court documents, evidence presented at Curry’s trial and yesterday’s sentencing hearing, law enforcement determined that Curry engaged in drug trafficking activities in and around Gastonia. On March 5, 2020, FBI agents and GPD officers executed a search warrant at Curry’s residence and seized crack cocaine, powder cocaine, various chemicals and other supplies consistent with converting cocaine into crack cocaine and $1,800 in drug proceeds. Court records show that law enforcement also recovered from the residence two firearms, including an assault pistol loaded with an extended high-capacity magazine, a .45 caliber handgun capable of firing shotgun shells, and a 100-round capacity ammunition drum loaded with 76 rounds. Curry has multiple prior felony convictions and he is prohibited from possessing firearms or ammunition. According to witness testimony, in addition to engaging in drug trafficking activities, law enforcement determined that Curry was planning to intimidate a witness.

On January 22, 2021, a federal jury convicted Curry of four counts of distribution of crack cocaine, possession with intent to distribute cocaine and crack cocaine, possession of firearms in furtherance of drug trafficking, 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.

In making today’s announcement, U.S. Attorney King thanked the FBI and GPD for their investigative work on this case. 

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

                      

CHARLOTTE, N.C. – Barry Bryan Edwards, 65, of Hickory, N.C. appeared in federal court today and pleaded guilty to wire fraud conspiracy for accepting kickbacks and bribes from a private contractor, 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 Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI) join U.S. Attorney King in making today’s announcement.

According to filed plead documents and today’s plea 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 today, as Director of Utilities and Engineering, Edwards had the authority to review and award on behalf of the County government contracts to private businesses for engineering and consulting activities related to the County’s landfill, 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, including expensive meals, tickets to sporting events, and wine-tasting tours, totaling more than $30,000.

Edwards pleaded guilty before U.S. Magistrate Judge David C. Keesler and was released on bond. The wire fraud conspiracy charge carries a maximum penalty of 20 years in prison and a $250,000 fine.

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 is in charge of the prosecution.

 

CHARLOTTE, N.C. – Trevon Darnell Hopkins, 27, of Charlotte, was sentenced to 10 years in prison and two years of supervised release for illegal gun possession, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In October 2021, a federal jury convicted Hopkins of possession of a firearm by a felon.

U.S. Attorney King is joined in making today’s announcement by Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department (CMPD).

According to filed documents, trial evidence, and today’s sentencing hearing, on June 23, 2018, CMPD officers observed Hopkins driving a vehicle that had been reported stolen. When law enforcement attempted to execute a traffic stop of the vehicle, Hopkins refused to comply and sped away. The defendant then proceeded to drive recklessly, including into oncoming traffic and on the sidewalk. Hopkins eventually lost control and crashed the vehicle. CMPD officers arrested Hopkins at the scene. As trial evidence established, law enforcement located two firearms in the stolen vehicle. Hopkins is prohibited from possessing firearms due to multiple prior felony convictions. At the time of the incident, Hopkins was on post-release supervision with the State of North Carolina.

Hopkins 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 the ATF and CMPD for their investigation of the case. 

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

CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. handed down 17.5-year prison sentences to Rene Garcia, Jr., 43, of Laredo, Texas, and Jose Luis Ramirez, Jr., 45, of Concord, North Carolina, for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison terms imposed, both defendants were ordered to serve 10 years under court supervision upon completion of their prison terms.

U.S. Attorney King is joined in making today’s announcement by Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, Chief Michael Hudgins of the Pineville Police Department, and Chief Kevin Black of the Cornelius Police Department.

According to filed court documents and today’s sentencing hearings, on August 19, 2020, law enforcement learned that Garcia and Ramirez were trafficking narcotics in the Charlotte area. Law enforcement investigating the case recovered from the defendants’ hotel room more than 230 grams of methamphetamine the pair had accidentally left behind after checking out of the hotel. Court records show that law enforcement arrested Garcia and Ramirez when the men returned to the hotel to recover the drugs from the room. At the time of the arrest, law enforcement recovered from Ramirez a loaded firearm and a large amount of cash, and from Garcia more drugs and cash. Law enforcement seized from the defendants’ truck a second loaded firearm, two magazines containing ammunition, drug paraphernalia, and fake identification cards. Law enforcement also determined that the truck Garcia and Ramirez were driving had been reported as stolen.

Over the course of the investigation, law enforcement determined that, within the previous 30 days, the pair had trafficked approximately 15 pounds of methamphetamine in the Charlotte area.

In handing down today’s sentences, the Court took into consideration Garcia’s and Ramirez’s extensive prior drug trafficking and felony convictions. At the time of the offense, Garcia was on supervised release after he previously served more than 10 years in prison on federal racketeering conspiracy and firearms offenses for his affiliation with a cartel assassination squad.

Both Garcia and Ramirez pleaded guilty to possession with intent to distribute methamphetamine and aiding and abetting. They are currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

The DEA, the Pineville Police Department, and the Cornelius Police Department handled the investigation.

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

CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad Jr. ordered James Arden Alexander, 33, of Indian Trail, N.C., to serve 162 months in prison and two years of supervised release for robbing a Family Dollar store, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Alexander’s co-defendant, Gerran McClure, 33, of Charlotte, was previously sentenced to four years in prison and two 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 and today’s sentencing hearing, on December 16, 2019, at approximately 5:15 p.m., Alexander entered the Family Dollar store located at 6716 Nations Ford Road in Charlotte. Upon entering, Alexander pointed a firearm at two customers and the store’s cashier and ordered them to get on the ground. Court records show that the victims complied and Alexander went behind the counter. He then pointed his firearm at the cashier and forced her to stand up and open the register. Alexander took cash out of the register and the store’s safe and fled the scene. Shortly thereafter, CMPD officers located Alexander and McClure in a vehicle and attempted to stop them. McClure and Alexander ignored the officers, drove recklessly, and fled into South Carolina. The South Carolina Highway Patrol continued to attempt to pull over the getaway car, and eventually were successful in stopping the vehicle on Interstate 77. Both defendants were arrested at the scene. CMPD officers recovered from the vehicle the cash taken from the Family Dollar store, a loaded firearm, and additional firearm magazines.

On April 12, 2021, Alexander pleaded guilty to robbery of a business affecting interstate commerce, or “Hobbs Act” robbery. McClure pleaded guilty to being an accessory after the fact to the Hobbs Act robbery.

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

In making today’s announcement, U.S. Attorney King thanked the FBI and CMPD for their investigation of this case and the South Carolina Highway Patrol for their assistance in this case.

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

 

CHARLOTTE, N.C. – The Justice Department announced today that Robert George, 49, was resentenced today by U.S. District Judge Kenneth D. Bell to three years in prison and one year of supervised release in connection with a 2013 incident that occurred while he was a Sergeant with the Hickory Police Department in North Carolina.

On Jan. 17, 2019, a federal jury convicted George of using excessive force for assaulting a woman whom he had arrested and transported to the Hickory Police station. George was previously sentenced to a term of probation by a different U.S. District Court judge following the trial, but the Fourth Circuit Court of Appeals reversed and remanded the case for resentencing.

The evidence at trial established that on Nov. 11, 2013, George assaulted a woman following her arrest.  George forcibly pulled the handcuffed woman out from his police car and slammed her face-down onto the ground in the driveway just outside of the police station’s sally port. The forceful impact with the pavement caused the woman to suffer serious injuries that included a broken nose, severe dental trauma that required multiple surgeries and facial lacerations. Following the assault, George locked the woman in a cell and placed a spit-hood over her head because she was bleeding severely. The assault was captured by the police station’s security camera.

“Police officers who violently and unlawfully assault people in their custody, causing severe physical injuries and trauma, are not above the law and will be held accountable,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This sentencing sends a strong message that the Justice Department will continue to aggressively prosecute officers who abuse their power by using unlawful force on people in their custody.”

“A person’s constitutional rights do not cease to exist during or after an arrest,” said U.S. Attorney Dena J. King of the Western District of North Carolina. “A federal jury rightfully decided that former police sergeant George used excessive force against an individual in his custody, and today’s resentencing reflects the seriousness of his unlawful conduct. As federal prosecutors, we have a duty to protect everyone’s civil rights and to investigate and prosecute federal law violations involving police misconduct. We owe it to the people living in the Western District and to the thousands of law enforcement officers who serve and protect the public with honor and dedication.”

“The security video of George's actions that day in 2013, is sickening,” said Special Agent in Charge Robert R. Wells of the FBI Charlotte Division. “We are grateful to our partners at the Hickory Police Department who immediately began an internal investigation and requested state and federal assistance. We hope today's resentencing sends a message that no one is above the law, and everyone deserves to be treated with respect and dignity.”

The case was investigated by the FBI and prosecuted by Civil Rights Division Criminal Section Trial Attorney Sanjay Patel and Assistant U.S. Attorney Kimlani Ford from the U.S. Attorney’s Office for the Western District of North Carolina.

           

CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell sentenced today a Hickory, N.C. man to 77 months in prison for a federal firearms violation, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Chaetez Sean Clayton, 31, was also ordered to serve three years of supervised release upon completion of his prison term. 

According to filed court documents and statements made in court, on May 6, 2020, Clayton sold a loaded Springfield .40 caliber pistol with a high capacity magazine and a loaded Ruger 9mm pistol for $1,000 in cash. A jury found Clayton guilty in June 2021 for possession of a firearm by a convicted felon. Clayton was prohibited from possessing firearms due to his 2015 federal conviction of possession with intent to distribute cocaine.

In a separate case, earlier this week Judge Bell handed down a 78-month prison sentence to Davion Lee Drayton, 25, of Charlotte, for possession of a firearm by a convicted felon. Court documents filed in this case show that on February 25, 2021, officers with the Charlotte-Mecklenburg Police Department (CMPD) attempted to conduct a traffic stop of the vehicle Drayton was driving. Drayton was able to evade the officers after he stopped his vehicle and fled the scene. A CMPD officer inspected Drayton’s vehicle and observed in plain view a Glock 17 9mm semi-automatic pistol with a high capacity magazine. According to court records, the firearm had a round in the chamber and at least 20 rounds in the magazine. Drayton was arrested by law enforcement on the federal indictment on May 19, 2021. At the time he was arrested, Drayton illegally possessed another firearm. He pleaded guilty to possession of a firearm by a felon in September 2021.

In making today’s announcement, U.S. Attorney King thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for their investigation of Clayton’s case, and thanked the North Carolina State Bureau of Investigation, the Hickory Police Department, the Catawba County Sheriff’s Office, and the Burke County Sheriff’s Office for their invaluable assistance. ATF and CMPD handled the investigation into Drayton.

Assistant U.S. Attorneys Christopher Hess and Lambert Guinn were in charge of Clayton’s prosecution, and Assistant U.S. Attorney David Kelly prosecuted the case against Drayton. 

CHARLOTTE, N.C. – A federal grand jury in Charlotte has indicted two individuals on federal charges in connection with a scheme to obtain more than $15 million from the North Carolina Medicaid program, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

The indictment charges Donald Booker, 56, of Charlotte, and Delores Jordan, 53, of Louisville, Kentucky, with conspiracy to commit health care fraud, violations of the Anti-Kickback Statute, conspiracy to commit money laundering, and money laundering.

According to allegations contained in the indictment, Booker owned United Diagnostic Laboratories (UDL), a urine toxicology testing laboratory, and United Youth Care Services (UYCS), a company that provided mental health and substance abuse treatment services. Jordan owned Legacy Housing, a subsidized housing provider. The indictment alleges that from January 2016 to December 2020, Booker and his co-conspirators executed a conspiracy to defraud the North Carolina Medicaid program by paying illegal kickbacks to Jordan and other co-conspirators in exchange for urine samples from Medicaid-eligible beneficiaries.

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

Booker and Jordan have been arrested by the FBI.

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

The FBI, IRS-CI, and NC Medicaid Investigations Division are in charge of the investigation.

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