Western District of North Carolina

CHARLOTTE, N.C. – A federal jury in Charlotte has convicted Brandon Grunwaldt, 46, of Mint Hill, N.C., of sexual exploitation of a minor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

According to filed court documents, trial evidence and witness testimony, between February 16 and October 31, 2020, Grunwaldt secretly recorded a minor on five different occasions while the minor was undressing and showering. A forensic analysis of electronic devices seized from Grunwaldt revealed that the defendant possessed five videos that depicted the minor using the shower and changing clothes. The jury convicted Grunwaldt of five counts of production of child pornography and one count of possession of child pornography.

Grunwaldt is currently in federal custody. A sentencing date has not been set. Each count of production of child pornography charge carries a minimum statutory sentence of 15 years and a maximum of 30 years in prison and a $250,000 fine. The charge of possession of child pornography carries a statutory penalty of no more than 10 years in prison and a $250,000 fine.

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

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

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

 

CHARLOTTE, N.C. – Clifton Ray Anderson, Jr., 47, of Boomer, N.C., appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to conspiracy to defraud the United States of excise taxes on distilled liquor and to violate the laws of the United States, including the interstate transportation of untaxed liquor and possession of an unregistered still, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Anderson’s co-conspirators, Roger Nance, 76, of Wilkesboro, N.C., Huie Kenneth Nicholson, 75, of Hamptonville, N.C., and Gary Matthew Ray, 53, of Roaring River, N.C., previously pleaded guilty to the same conspiracy charge as Anderson. James Patterson, 71, of Dinwiddie, VA, previously pled guilty in a separately filed case in the Western District of North Carolina to distributing untaxed moonshine distilled by Anderson.

According to filed plea documents and today’s plea hearing, from April 2018 to September 2020, Anderson conspired with Nance, Nicholson, and Ray to operate and maintain an illegal still at a barn owned by Ray in Wilkes County. Anderson leased the barn from Ray for $500 per month and used it to illegally produce more than 9,000 gallons of untaxed liquor, commonly known as moonshine. Court records show that, during the relevant time period, Nance, Nicholson and Ray transported the moonshine across state lines to Patterson in Virginia for sale and distribution, which resulted in a total federal and state excise and sales tax loss of over $100,000.

Anderson was released on bond following his guilty plea. The conspiracy charge and the charge of possession of an unregistered still each carry a maximum prison sentence of five years and $250,000 fine.

In making today’s announcement, U.S. Attorney King commended the work of the Alcohol and Tobacco Tax and Trade Bureau and the Triad Municipal ABC Board for their investigation of the case.

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

ASHEVILLE, N.C. – John Wayne Drysdale, 69, of Minneapolis, M.N., has been sentenced to 180 months in prison for transportation of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Martin Reidinger also ordered Drysdale to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.

Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chris Edge, Acting United States Marshal of the United States Marshals Service (USMS) for the Western District of North Carolina, join U.S. Attorney King in making today’s announcement.

According to court documents and statements made in court during yesterday’s hearing, on December 11, 2020, the USMS in Minneapolis contacted USMS in Asheville regarding Drysdale, who they believed to be in Forest City in Rutherford County. Drysdale had been convicted of possession and receipt of child pornography in Minnesota and was on supervised release after serving his federal sentence. Court records show that, while on supervised release, Drysdale removed his electronic monitoring device and travelled to North Carolina. The Asheville USMS and the Rutherford County Sheriff’s Office were able to locate Drysdale at a residence in Forest City and Drysdale was taken into custody.

According to court records, the day law enforcement arrested Drysdale HSI special agents seized his electronic devices. HSI computer forensic analysts conducted an analysis of the seized devices and located images containing child pornography, URL links to websites hosting child pornography, and websites known to serve as chat forums for pedophiles and recovered evidence that Drysdale had begun to access the dark web.

On August 30, 2021, Drysdale pleaded guilty to transportation of child pornography. He is currently in federal prison 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 HSI and the U.S. Marshals Service for their investigation of the case and thanked the Rutherford County Sheriff’s Office and the U.S. Probation Office for the District of Minnesota for their invaluable assistance.

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

 

 

 

 

 

 

CHARLOTTE, N.C. – A grand jury in Asheville has indicted four individuals on federal charges in connection with the burglary of an Asheville firearms dealer, 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 David Zack of the Asheville Police Department (APD) join U.S. Attorney King in making today’s announcement.

The indictment charges Jesse Lynn Williams, 33, Lyron Deshawn Greenlee, 34, and Alexa Rae Bassillo, 29, all of Asheville, with conspiracy to commit theft of firearms from a Federal Firearms Licensee (FFL), and theft of multiple firearms from an FFL and aiding and abetting. Williams, Greenlee, and Bernard Eugene Carson, Jr. 33, of Morganton, N.C., are also charged with possession of a firearm by a felon. Williams and Bassillo are also facing charges of possession of a firearm by a user of a controlled substance.

According to allegations contained in the indictment, on January 7, 2022, Williams, Greenlee and Bassillo conspired to break into and steal firearms from Carolina Guns and Gear West, LLC (Carolina Guns and Gear) an FFL located at 3106 Sweeten Creek Road, in Asheville. The indictment alleges that Williams broke into the gun store and stole 33 firearms, while Bassillo and Greenlee served as lookouts or drivers during the burglary. The indictment further alleges that between January 7 and January 12, 2022, Carson was found to be in possession of one of the stolen firearms.

The defendants will be appearing in court on the charges before U.S. Magistrate Judge W. Carleton Metcalf.

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

The ATF and APD are in charge of the investigation. The U.S. Attorney’s Office in Asheville is prosecuting the case.

 

ASHEVILLE, N.C. – Forrest Cole Stamper, 28, of Cherokee, N.C., and an enrolled member of the Eastern Band of Cherokee Indians, was sentenced today to 48 months in prison and 15 years of supervised release for abusive sexual contact of a minor in Indian Country, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also ordered Stamper to register as a sex offender after he is released from prison.

Joining U.S. Attorney King in making today’s announcement is Chief Josh Taylor of the Cherokee Indian Police Department.

Stamper pleaded guilty to the charge on December 1, 2021. According to plea documents and information presented in court, Stamper admitted that on September 6, 2020, he knowingly engaged in unlawful sexual contact with a minor victim who was under the age of 12 at the time of the offense. Stamper admitted to touching the minor, who is also an enrolled member of the Eastern Band of Cherokee Indians, on the minor’s groin and inner thigh. At today’s sentencing hearing, Judge Cogburn imposed on Stamper the statutory maximum penalty for the offense.

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

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

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

 

ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger has sentenced John Webb Powell, 51, of Burnsville, N.C., to 294 months in prison on child pornography charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Reidinger ordered Powell to serve a lifetime under court supervision upon completion of the prison term and to register as a sex offender.

Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Sheriff Shane Hilliard of the Yancey County Sheriff’s Office join U.S. Attorney King in making today’s announcement.

“Powell will spend the next two decades where he belongs: behind bars,” said U.S. Attorney King. “Recidivist sex offenders who prey on vulnerable children pose a serious danger to the community and will be prosecuted to the fullest extent of the law. I commend the investigative efforts of HSI and the Yancey County Sheriff’s Office. Their work on this case ensured that Powell was brought to justice and will no longer inflict harm upon his victim.”

“As a result of the collaborative work of HSI and its law enforcement partners, Powell’s days of victimizing children have come to an end,” said Special Agent in Charge Martinez. “As a repeat offender, today’s significance sentence will ensure Powell will no longer pose a threat to children and communities in the region.” 

“The Yancey County Sheriff’s Office will always be diligent in our efforts to protect the children of our community from sexual predators,” said Sheriff Hilliard. “We would like to thank Homeland Security Investigations and the U.S. Attorney’s Office for their assistance in the investigation and subsequent conviction of this repeat sex offender.”

According to filed court documents and yesterday’s sentencing hearing, in February 2020, Powell was communicating with a minor female via text messages. Over the course of their communications, Powell solicited and received from the minor, images depicting the minor engaging in sexually explicit conduct. According to information contained in court documents, Powell also committed repeated sexual assaults against the minor over an extended time period. A forensic analysis of Powell’s seized cell phone further revealed that Powell had conducted internet searches for images containing child pornography. At the time of the offense, Powell was registered as a sex offender and was on supervised release for a previous federal offense of possession of child pornography.

On October 18, 2021, Powell pleaded guilty to receiving child pornography. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

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

The U.S. Attorney’s Office in Asheville prosecuted the case 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. District Judge Robert J. Conrad sentenced Joseph Ransome, 51, of Indian Trail, N.C., to 30 months in prison for wire fraud yesterday, for defrauding the COVID-19 Unemployment Insurance (UI) benefit program, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Judge Conrad also ordered Ransome to serve three years of supervised release and to pay $44,172 in restitution. 

The Coronavirus Aid, Relief and Economic Security (CARES) Act is a federal lawenacted March 29, 2020, designed to provide emergency financial assistance, including expanded UI benefits, to millions of Americans suffering the economic effects of the COVID-19 pandemic.

According to plea documents and statements made in court, from March 2020 through July 2020, Ransome received UI benefits to which he was not entitled. Court documents show that Ransome applied for fraudulent UI benefits in multiple states, including in North Carolina, New Jersey, New York, and elsewhere. Ransome filed for the UI benefits based on fraudulent claims, including non-existent employment and false reason for termination. For example, Ransome falsely claimed to have been laid off from Walmart in North Carolina due to COVID-19, when in fact Ransome had been laid off due to misconduct. Ransome also falsely claimed prior employment at Target, BestBuy, Lowe’s, and Hobby Lobby, and falsely claimed that he had been laid off from some of these companies because he had been diagnosed with COVID-19 or due to lack of work because of the coronavirus when he had never in fact been employed by those companies. As a result of the fraudulent scheme, during the relevant time period, Ransome applied for more than $163,000 in fraudulent UI benefits provided under the expanded CARES Act.

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In a separate case, Judge Conrad revoked Bryon Jones’s supervised release after the defendant violated its terms by engaging in a scheme to defraud the U.S. Small Business Administration (SBA). According to court documents in this case, Jones, 66, of Charlotte, used false and fraudulent business information to apply for and receive through his business, Ramses Air Freight & Transport, Inc., $142,900 in COVID-19 relief funds disbursed by the SBA under the Economic Injury Disaster Loan (EIDL) program. Jones, who was on a 10-year term of federal supervised release for a previous drug trafficking conviction, was ordered to serve 24 months in prison and five years of supervised release for the new violations.

In making today’s announcement, U.S. Attorney King commended the U.S. Postal Inspection Service, the FBI, and the Atlanta Regional Office of the U.S. Department of Labor, Office of the Inspector General, for their investigation of the Ransome case. Jones’s investigation was conducted by the U.S. Postal Inspection Service, the SBA and the U.S. Probation Office.

Assistant U.S. Attorney Caryn Finley was in charge of the prosecution against Ransome. The Jones prosecution was handled by Assistant U.S. Attorney Graham Billings.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.

CHARLOTTE, N.C. – Douglas Wright, Jr., 27, of Charlotte, appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to mail fraud, for stealing merchandise from Amazon worth over $273,000, 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 FBI in Charlotte, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte.

According to plea documents and today’s hearing, from June 2020 to September 2021, Wright executed a scheme to defraud Amazon by stealing merchandise worth over $273,000 from the company’s warehouse. Over the course of the scheme, Wright was employed as an Operation’s Manager at Amazon’s warehouse in Charlotte. Court records show that Wright misused his access to the company’s computers to target certain merchandise, particularly computer parts such as internal hard drives, processors, and graphic processing units, and shipped those items from the warehouse to his home address. As Wright admitted in court today, he then sold the stolen merchandise for profit to a computer wholesale company in California.

Wright pleaded guilty to mail fraud, which carries a maximum sentence of 20 years in prison and a $250,000 fine. A sentencing date has not been set.

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

 

CHARLOTTE, N.C. – U.S. District Judge Frank D. Whitney has sentenced Simone Cherelle McIllwain, 30, of Charlotte, to 235 months in prison and 20 years of supervised release for sex trafficking of a minor, 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 court documents and statements made in court during yesterday’s hearing, on January 1, 2020, law enforcement were notified that a 13-year-old female was a suspected victim of sex trafficking. Over the course of the investigation, law enforcement determined that, from December 2 to December 25, 2019, McIllwain did in fact engage in the sex trafficking of the minor in the Charlotte area. Court documents show that the minor victim was introduced to McIllwain through a mutual acquaintance, and shortly thereafter McIllwain began to advertise the victim online for commercial sex. McIllwain also arranged for the minor to engage in sex acts at McIllwain’s hotel room and she kept a portion of the proceeds. At the time of the offense, McIllwain was on supervised release for a 2014 federal conviction in Florida, for transporting a minor to engage in criminal sexual activity.

On April 19, 2021, McIllwain pleaded guilty to sex trafficking of a minor. She is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of federal facility.

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

Assistant United States Attorney Erik Lindahl prosecuted the case.

If you believe you are the victim of a trafficking situation or may have information about a potential trafficking situation, call the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888. NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week, every day of the year related to potential trafficking victims, suspicious behaviors, and/or locations where trafficking is suspected to occur. You can also text NHTRC at 233733 or submit a tip online. 

 

 

 

CHARLOTTE, N.C. – Richard Graves, 49, of Greensboro, N.C., appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to conspiracy to commit health care fraud and money laundering conspiracy for his role in a scheme to obtain more than $14 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).

According to filed court documents and today’s guilty plea, Graves was an employee of United Diagnostic Laboratories (UDL), a urine toxicology testing laboratory, and United Youth Care Services (UYCS), a company that provided mental health and substance abuse treatment services. Court documents show that from January 2016 to July 2020, Graves and his co-conspirators executed a conspiracy to defraud the North Carolina Medicaid program by paying illegal kickbacks to co-conspirators in exchange for urine samples from Medicaid-eligible beneficiaries.

As Graves admitted in court today, he and his co-conspirators located recruiters to recruit at-risk youths and other Medicaid-eligible beneficiaries for after-school, youth mentoring, housing, or other programs and services. Once enrolled, the beneficiaries were required to submit urine specimens for drug testing, which were provided to UDL and UYCS for medically unnecessary urine drug testing. Graves and his co-conspirators paid the recruiters a kickback from UYCS’s NC Medicaid reimbursement on the drug testing.

In addition, Graves and his co-conspirators executed a conspiracy to launder the proceeds of the kickback and health care fraud conspiracy through Everlasting Vitality, a company owned by one of the recruiters. According to plea documents, Everlasting Vitality sent fraudulent invoices to UYCS listing the hours that the co-conspirators purportedly worked for UYCS in the prior month. The fraudulent invoices listed fake services that had not actually been provided to UYCS, including program development and design, community engagement, motivational speaking, and college mentorship services. In truth and in fact, the purpose of these invoices was to conceal and disguise the nature and source of UYCS’s illegal kickback payments for drug testing referrals.

Graves pleaded guilty today to health care fraud conspiracy and money laundering conspiracy. The health care fraud conspiracy charge carries a maximum prison term of five years and a $250,000 fine. The money laundering conspiracy charge carries a maximum prison term of 20 years and a $500,000 fine. 

Graves was released on bond. A sentencing date has not been set.

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.          

ASHEVILLE, N.C. – Chief U.S. District Judge Martin Reidinger has sentenced Jacob Daylen Ross, 47, of Marion, N.C., to 660 months in prison on child pornography charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Judge Reidinger ordered Ross to serve a lifetime under court supervision upon completion of his prison term. A federal jury convicted Ross in March 2021 of five counts of production of child pornography and one count of possession of child pornography

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

“Ross’s lengthy sentence reflects the depravity of his actions,” said U.S. Attorney King. “Perpetrators who rely on the anonymity of the internet to skirt our nation’s laws and engage in webcam sex tourism, or any other lewd conduct harmful to minors, ought to know that federal prosecutors and our law enforcement counterparts will do whatever it takes to protect all children – within our borders and beyond.”

“This sentence sends a strong message that HSI and our law enforcement partners are unified in our shared commitment to protect children here and abroad from predators such as Ross,” said Special Agent in Charge Martinez. “Thanks to the unique global investigative reach of HSI, coupled with the outstanding work of our special agents and the detectives with the McDowell County Sheriff’s Office and federal prosecutors, we have ensured that Ross is being held fully accountable for his horrific actions.”

“I am very proud of the dedicated efforts from our investigators. These types of crimes that prey on our children sicken me. Our children depend on others to keep them safe and protect them, not hurt them. I appreciate our relationships with our federal partners, the Department of Homeland Security and the U.S. Attorney’s Office, and appreciate their attention to such heinous crimes,” said Sheriff Buchanan.

According to filed court documents, evidence presented at Ross’s trial and yesterday’s sentencing hearing, in June 2020, law enforcement became aware that Ross was involved in the online sexual exploitation of children overseas. As trial evidence established, Ross paid individuals abroad in exchange for livestream videos depicting children being sexually abused. Specifically, the evidence showed that Ross communicated via the WhatsApp messenger application with a woman residing in the Philippines on multiple occasions and paid the woman to sexually abuse her young children while Ross watched a livestream video of the abuse. A forensic analysis of Ross’s seized cell phone revealed that he possessed 28 images of child pornography, which were screenshots taken during a livestream video chat. Furthermore, law enforcement located in Ross’s Google accounts additional screenshot images of the livestreamed sexual abuse of children.

Ross 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 HSI and the McDowell County Sheriff’s Office for their investigation of this case and thanked the Wilkes County Sheriff’s Office for their invaluable assistance. 

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

HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form.

 

 

CHARLOTTE, N.C. – Donna Osowitt Steele, 52, of Taylorsville, N.C., appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to wire fraud, for embezzling more than $15 million from her former employer, 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 plea documents and admissions made by Steele in court, from at least 2013 to January 2020, the defendant executed an extensive scheme to defraud her employer, identified in court documents as Victim Company A, a privately held U.S. based subsidiary of a foreign company that manufactures carbide products. The owners of Victim Company A and its parent company reside overseas. Court records show that Steele embezzled over $15 million from Victim Company A and used the money to support a business run by her and her family and to fund an extravagant lifestyle.

As Steele admitted in court today, she was employed by Victim Company A from 1999 to January 2020. Initially, Steele worked in the shipping department and was promoted over the next 20 years to various positions within the company, including to the position of Chief Executive Officer (CEO), which she held until she was terminated in January 2020. While serving as Vice President and later as CEO, Steele used her positions to embezzle funds from Victim Company A in a number of ways, including through fraudulent company credit card purchases, company checks, Quickbooks transactions, and wire transfers. For example, filed court documents show that Steele used company credit cards to pay for $6 million in personal expenditures, including to make high-end retail store purchases, to pay for luxury hotel accommodations and event ticket purchases, to buy expensive jewelry, to pay for family weddings, and to make purchases related to Opulence by Steele, a luxury clothing and boutique company the defendant founded in 2013.

In addition to the credit card purchases, Steele admitted to issuing and causing to be issued to herself approximately 98 checks totaling more than $2.8 million from Victim Company A’s bank accounts, which Steele deposited into her personal bank account. Furthermore, Steele caused 127 fraudulent and unauthorized wire transfers to be executed as Quickbooks transactions, transferring more than $4.7 million from Victim Company A’s bank accounts to her personal bank account. During the same time period, Steele executed at least 117 fraudulent and unauthorized bank wires, totaling more than $2.2 million, from Victim Company A’s bank accounts to the defendant’s personal bank account, which she then used for her personal benefit, including to fund a personal real estate closing.

According to filed documents, as a result of Steele’s embezzlement, Victim Company A experienced several difficulties, including vendors withholding products from the company for non-payment or late payments, customers complaining about being placed on credit holds, notwithstanding timely payments of their bills, employees having their company credit cards declined when they were trying to use them for legitimate business expenses, employees not being paid on time, and/or employees having their insurance cancelled without warning. Steele admitted that, in an effort to hide the fraudulent scheme, she limited communications and interactions between the employees and owners for Victim Company A and monitored communications that did occur, she convinced employees that company owners should be feared, and lied to employees about the true nature of Victim Company A’s financial trouble.

Steele pleaded guilty to wire fraud embezzlement scheme, which carries a maximum penalty of 20 years in prison and a $250,000 fine. Following the entry of her guilty plea, Steele was released on bond. A sentencing date has not been set.

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

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

 

CHARLOTTE, N.C. – January is National Human Trafficking Prevention Month and the U.S. Attorney’s Office for the Western District of North Carolina reaffirms its commitment to combating all forms of human trafficking.

“Human trafficking, which encompasses sex trafficking, forced labor, and domestic servitude, is a crime that impacts our society’s most vulnerable members,” said U.S. Attorney Dena J. King. “The invisible nature of human trafficking poses a challenge for prosecutors and law enforcement, as perpetrators often commit this abhorrent crime in plain sight. Working with our law enforcement and community partners we will continue to raise awareness and shine a light on all forms of human trafficking, work together to identify and assist trafficking victims, and prosecute those who use fraud, force and coercion to profit from the exploitation of other human beings."

“Right now, there are more than 1,700 human trafficking cases being investigated by the FBI in field offices across the country. Our investigations are not only about taking traffickers off the streets, but about making sure we offer resources, care, and kindness to the victims to help them rebuild their lives. The FBI’s victim assistance specialists work with every trafficking victim to help end the cycle of violence and manipulation they experience,” said FBI Special Agent in Charge Robert R. Wells.  

“HSI special agents and officers in your communities and around the globe work tirelessly to uncover, dismantle and disrupt human trafficking every day,” said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “Human Trafficking Prevention Month is a great reminder to us all, that ‘If you see something, say something.’”

Human Trafficking Prosecutions

In 2021, the Office’s anti-trafficking efforts have resulted in the following prosecutions:

U.S. v. McIllwain – On April 19, 2021, Simone Cherelle McIllwain, 30, of Charlotte, pleaded guilty to sex trafficking of a minor. As filed plea documents show, from December 2 to December 19, 2019, McIllwain did knowingly recruit, entice and transport a minor, recklessly disregarded that the minor was under the age of 18 years old, and that the minor would be caused to engage in a commercial sex act. A sentencing date for McIllwain has not been set.

U.S. v. Blair – On July 1, 2021, Dajuan Akeem Blair, 26, of Cornelius, N.C., pleaded guilty to sex trafficking of a minor. As Blair admitted in court, from December 26 to December 28, 2018, Blair recruited, enticed and transported a minor, having reasonable opportunity to observe the minor was under the age of 18 years old, and knowing that the minor would be caused to engage in a commercial sex act. A sentencing date for Blair has not been set.

U.S. v. Hasty – On October 13, 2021, Milton Antonio Hasty, 31, of Fayetteville, N.C., pleaded guilty to sex trafficking of a minor. According to court records, from January 22, 2019, through June 5, 2019, Hasty did knowingly recruit, entice and transport a minor, recklessly disregarded that the minor was under the age of 18 years old, and that the minor would be caused to engage in a commercial sex act. A sentencing date for Hasty has not been set.

U.S. v. Luong – On January 8, 2021, a federal jury in Charlotte convicted Thuy Tien Luong, 38, of Charlotte, of forced labor, after finding that the defendant compelled the labor of one of her nail technicians at a salon she owned and operated in Davidson, N.C. According to trial evidence, from October 2016 to June 2018, Luong compelled the victim’s labor by, among other things, physically assaulting the victim, threatening to ruin the victim’s reputation with her family, and falsely claiming that the victim owed Luong a fictitious debt. Luong is currently awaiting sentencing.

U.S. Attorney King commended the FBI for their investigative efforts in the prosecutions against McIllwain, Blair and Hasty, and thanked HSI, the Charlotte Mecklenburg Police Department, and the Davidson Police Department for their excellent work in the case against Luong.

The statutory penalties for human trafficking offenses range from a minimum of 10 years to a maximum of life in prison.

“As we continue our fight against all forms of human trafficking, our recent courtroom successes should serve as stark warnings to anyone engaged in this type of repugnant criminal activity: We will find you and hold you accountable to the fullest extent of the law,” said U.S. Attorney King.

* * *

If you believe you are the victim of a trafficking situation or may have information about a potential trafficking situation, call the National Human Trafficking Resource Center (NHTRC) at 1-888-373-7888. NHTRC is a national, toll-free hotline, with specialists available to answer calls from anywhere in the country, 24 hours a day, seven days a week, every day of the year related to potential trafficking victims, suspicious behaviors, and/or locations where trafficking is suspected to occur. You can also text NHTRC at 233733 or submit a tip online. 

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

CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell sentenced Cyianna Ashley Woods, 38, of Atlanta, Georgia, to 60 months in prison yesterday on wire fraud and money laundering charges, for executing a scheme that defrauded more than 300 Walmart stores of over $850,000, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Judge Bell also ordered Woods to serve three years of supervised release and to pay $923,915 in restitution.

Judge Bell previously sentenced Woods’s codefendant, Andre Marquese White, 35, of Norcross, Georgia, to 46 months in prison and three years of supervised release for his role in the conspiracy.

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

In making today’s announcement, U.S. Attorney King said, “This criminal duo engaged in an extensive scheme that defrauded Walmart of hundreds of thousands of dollars. This type of financial crime impacts not only affected retailers but also consumers in the form of higher prices for goods and services.”

“This individual’s long-running and widespread scheme has been thwarted and now she will be held accountable for her crimes.” said HSI Special Agent in Charge Martinez. “Unlawful activity like this hurts businesses and results in higher costs to consumers.  This case should serve as a warning to others thinking they can get away with schemes like this that HSI and our law enforcement and private sector partners are watching.”

According to filed court documents and the sentencing hearing, from 2013 to 2019, Woods and White organized and executed a counterfeit bank check and wire fraud scheme against 300 Walmart stores in 24 states, including stores located in Iredell, Catawba, Mecklenburg, Anson, Gaston, and Buncombe Counties in North Carolina. To perpetuate the fraud, the defendants made counterfeit checks, which appeared as legitimate bank checks, that they then cashed at various Walmart stores. In this manner, over the course of the scheme the defendants obtained more than $850,000 in pre-paid debit cards, gift cards, Walmart shopping cards, and other merchandise. Court records also show that, the defendants further laundered the illegal proceeds by purchasing pre-paid debit cards from other retail stores. Both Woods and White previously pleaded guilty to wire fraud and money laundering charges.

U.S. Attorney King thanked HSI for their investigation of the case.

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

 

 

 

CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Benjamin Padua Jr, 56, of Huntersville, N.C., appeared in federal court and pleaded guilty to wire fraud, for embezzling hundreds of thousands of dollars from his employer following the company owner’s death.

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 plea documents and today’s plea hearing, from September 2019 to February 2021, Padua abused his senior finance position with his employer, identified in court documents as Trucking Company, and used falsified documents and improper accounting entries to embezzle hundreds of thousands of dollars. As part of the scheme, Padua admitted in court today that, following the Trucking Company owner’s death in October 2019, Padua forged the owner’s signature on a fake employment agreement Padua created and backdated to prior to the owner’s death. The fraudulent employment agreement purported to increase Padua’s compensation significantly through higher wages, bonuses, and life insurance benefits. As Padua admitted in court today, after he created the fake employment agreement, Padua received substantial compensation from the Trucking Company, to which he was not entitled.

Padua pleaded guilty to wire fraud and was released on bond. The wire fraud charge carries a maximum sentence of 20 years in prison and a $250,000 fine. A sentencing date was not been set.

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

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

 

 

 

CHARLOTTE, N.C. – Jessica Anne Miller, 39, of Hickory, N.C., was sentenced to 24 months in prison today on a wire fraud charge, for stealing more than $68,000 from a federally funded workforce development program, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell also ordered Miller to serve two years of supervised release.

U.S. Attorney King is joined in making this announcement by Rafiq Ahmad, Special Agent-in-Charge of the Atlanta Region of the U.S. Department of Labor, Office of Inspector General (DOL-OIG).

According to filed court documents and today’s sentencing hearing, from July 2016 to November 2019, Miller was employed as a career coach by an entity contracted by a nonprofit association of local governments to provide training to job seekers, using federal funds made available by the U.S. Department of Labor under the Workforce Innovation and Opportunity Act (WIOA). WOIA was signed into law in 2014, and it is designed to provide qualified individuals with access to training, education, and support services, and assistance with obtaining employment. As part of WOIA, qualified individuals can also be reimbursed for certain eligible expenditures such as mileage, costs and fees, and tools of the trade, among others. 

As a career coach, Miller was responsible for providing career guidance, case management and follow up to participants in the youth program. Miller previously admitted in court that, while serving as a career coach, she engaged in a scheme to divert government funds for her own benefit, by creating fraudulent documents, falsifying signatures, and making false and misleading statements to qualified individuals who were supposed to be the recipients of the WOIA funds.

In some instances, Miller created fraudulent documents for mileage reimbursement on behalf of students enrolled in the program, and then cashed the checks and kept the proceeds for herself. In other instances, Miller created fraudulent documents that falsely indicated that qualified individuals had made reimbursable purchases, such as tools of the trade, and were seeking reimbursement for those costs. Miller then submitted the fraudulent documents and cashed the reimbursement checks. Miller also created and submitted fraudulent documents, that included students’ forged signatures, indicating that students had successfully completed certain milestones that would have entitled them to gift cards. Instead of providing those gift cards to qualifying students, Miller kept them for herself.

To further perpetuate the scheme, court documents show that Miller opened bank accounts and American Express accounts in the names of students without their knowledge and consent and used those accounts to cash the fraudulent reimbursement checks. In total, Miller defrauded at least 40 individuals and diverted more than $68,000 in government funds for her own personal enrichment.

In making today’s announcement, U.S. Attorney King commended DOL-OIG for their investigation of the case and thanked the North Carolina State Bureau of Investigation and the Conover Police Department for their invaluable assistance.

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

 

ASHEVILLE, N.C. – U.S. Attorney Dena J. King announced today that a federal jury sitting in Asheville found Casey Lee Evans, 42, of Franklin, N.C., guilty of starting a fire that burned more than 70 acres of federal land.

According to filed court documents, evidence presented at trial and witness testimony, on April 3, 2020, law enforcement in Franklin received a call concerning a fire that was actively burning in the area of Cals Cove Road. According to trial evidence, over the course of the investigation law enforcement determined that Evans willfully started the fire, which originated within the Nantahala National Forest. The fire burned for several days before it was successfully extinguished. In total, the fire burned approximalely 70 acres of federal land and 20 more acres of private property.

Evans was convicted of willfully setting a fire on federal land, which carries a statutory maximum penalty of five years in prison and a $250,000 fine. Following the guilty verdict, Evans was remanded into federal custody. A sentencing date has not been set.

In making today’s announcement, U.S. Attorney King thanked the U.S. Forest Service, the North Carolina Forest Service, and the Otto Fire Department for their investigation of the case.

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

 

CHARLOTTE, N.C. –  Today, U.S. District Judge Kenneth D. Bell sentenced Maurice Kamgaing, 42, formerly of Charlotte currently residing in Archdale, N.C., to 33 months in prison for fraudulently obtaining more than $1.5 million in COVID-19 relief funds, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Kamgaing was ordered to serve five years under court supervision and to pay $1,454,296.14 in restitution. Judge Bell also entered a money judgment of $1,506,463 against Kamgaing, and a forfeiture order against the office building the defendant purchased with the fraudulently obtained loans as well as the two brokerage accounts he used to facilitate the fraud.

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

The CARES Act is a federal law enacted on March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is through forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program (PPP).

According to filed court documents and today’s sentencing hearing, on April 7, 2020, Kamgaing filed a fraudulent application for a PPP loan with the U.S. Small Business Administration (SBA) for Apiagne, Inc. (Apiagne), a company that Kamgaing incorporated in 2019. Court records show that the Apiagne PPP loan application contained false information about the number of employees and its payroll. As a result of the fraudulent representations, on or about May 6, 2020, Apiagne received a PPP loan for $856,463, which Kamgaing used for unauthorized purposes and for his personal benefit.

Filed court documents also show that on April 27, 2020, Kamgaing filed another fraudulent PPP loan application on behalf of AKC Solutions, a company that Kamgaing had previously dissolved and subsequently reinstated in May 2020. The loan application for AKC Solutions also misrepresented the number of employees employed by the company and its monthly payroll disbursements. On May 5, 2020, a PPP loan for $650,000 was disbursed to AKC Solutions, and within days of receiving the loan Kamgaing used the funds for various improper purposes and to pay for personal expenses. To substantiate the representations in both loan applications, Kamgaing created and presented fraudulent documentation, including fake tax returns and bank statements.

According to court documents, Kamgaing used $850,000 of the PPP loan proceeds to purchase a commercial office building in Archdale and transferred hundreds of thousands of dollars to two brokerage accounts where he invested the funds in the stock market for his personal benefit.

On August 25, 2021, Kamgaing pleaded guilty to wire fraud in relation to a disaster benefit and engaging in monetary transactions in criminally derived property.

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

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

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.

CHARLOTTE, N.C. – Frank Jacobs, Sr., 51, formerly of Charlotte now residing in Concord, N.C., appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to tax and wire fraud, for filing a false tax return and using fraudulent information to obtain a COVID-19 relief loan, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

According to filed plea documents and today’s hearing, from at least 2009 to 2018, Jacobs was the Pastor of the Rock Worship Center Church (RWC) in Charlotte, and from at least 2019 to 2021, Jacobs was the Pastor of Quest Church, also located in Charlotte. Filed documents show that, for tax years 2009 through 2013, and 2015 through 2017, Jacobs failed to file timely U.S. Individual Income Tax Returns, Forms 1040, even after he received correspondence from the IRS in some of those years about the need to file and pay taxes. Jacobs did file a tax return for tax year 2014, but, as he admitted in court today, Jacobs both underreported his income on the returns he filed and failed to make a payment to the IRS for any tax liabilities.

As described in plea documents, on April 22, 2020, Jacobs filed on behalf of Quest Church a fraudulent application to obtain disaster-related loan benefits in the form of a Paycheck Protection Program (PPP) loan. The PPP loan program, sponsored by the United States Small Business Administration (SBA), was expanded under the CARES Act to provide support for small businesses to remedy economic harm caused by the COVID-19 outbreak.

Jacobs admitted in court today that the documents he submitted as part of the application process for the PPP loan contained information that was false and inaccurate. For example, Jacobs claimed that Quest Church paid wages totaling more than $135,000 to five employees, from which federal income taxes had been withheld, when in fact Quest Church never reported any payments of any wages to the IRS for the corresponding calendar year, nor did it pay any withholding taxes on such income.

Jacobs was released on bond following his court appearance. A sentencing date for Jacobs has not been set.

The charge of filing a false tax return carries a maximum statutory penalty of three years in prison and a $250,000 fine. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine.

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

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

The Department of Justice and the U.S. Attorney’s Office for the Western District of North Carolina remain vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. If you think you are a victim of coronavirus fraud or have information pertaining to fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or submit a complaint online using the NCDF Web Complaint Form.  Members of the public in the Western District are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.

 

CHARLOTTE, N.C. – A federal jury handed down a guilty verdict today against Valentino Cabral Darosa, 29, of Charlotte, for the armed robbery of a local business and related firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

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

Court records show that Darosa was on post-release supervision when he committed the armed robbery. He also has multiple felony convictions in Mecklenburg and Cabarrus Counties and he is prohibited from possessing a firearm.

Darosa was convicted of robbery of a business affecting interstate commerce, or Hobbs Act Robbery, using or carrying a firearm during and in relation to a crime of violence, and possession of a firearm by a felon. He is currently in federal custody. A sentencing date has not been set.

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

Assistant U.S. Attorneys Christopher Hess and Dana Washington are in charge of the prosecution.

 

ASHEVILLE, N.C. – Coyoami Ruiz Miguel, 26, of Asheville, was sentenced late yesterday by Chief U.S. District Judge Martin Reidinger to 28 years in prison on child pornography charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Chief David Zack of the Asheville Police Department (APD) joins U.S. Attorney King in making today’s announcement.

According to court documents and court proceedings, from July 2019 to April 2020, Miguel used Snapchat and other messaging apps popular with teenagers to contact at least 15 minor females in the Asheville area for the purpose of inducing the minors to produce sexually explicit images and engage in sex acts with him in exchange for money. In April 2020, APD officers arrested Miguel and seized numerous electronic devices. A forensic analysis of the devices revealed that Miguel possessed dozens of videos and images of teenage girls engaging in sexually explicit conduct. Some of the videos also depicted Miguel engaging in sex acts with the minors. As Miguel previously admitted in court, the defendant used the mobile payment service Cash App to pay the underage victims for the child pornography and sex acts.  

On January 13, 2021, Miguel pleaded guilty to possession of child pornography and using a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. In making today’s announcement, U.S. Attorney King commended the Asheville Police Department for their investigation of the case and thanked Homeland Security Investigations, the North Carolina State Bureau of Investigation, the Buncombe County Sheriff’s Office, and the Henderson County Sheriff’s Office for their invaluable assistance.

* * *

In a separate case, Judge Reidinger sentenced Kenneth Ricky Ingle, Jr., 35, of Shelby, North Carolina, to 20 years in prison and a lifetime of supervised release on child pornography charges. According to documents filed in this case, in August 2020, Ingle used the Kik messenger app to engage in sexually explicit communications with a 14-year-old female residing in Florida. Over the course of their exchanges, Ingle induced the minor to send him videos and images of herself depicting sexually explicit conduct.

U.S. Attorney King credited the FBI in North Carolina, under the direction of Special Agent in Charge Robert R. Wells, with the investigation leading to Ingle’s prosecution.

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

Miguel will also be subject to deportation proceedings upon the completion of his federal sentence. If Miguel is not deported, or later returns to the United States, he was ordered by Judge Reidinger to serve a lifetime of supervised release and to register as a sex offender.

Both cases were prosecuted by the U.S. Attorney’s Office in Asheville 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. – The Department of Justice announced today that it has awarded more than $17.5 million in grants to support the Project Safe Neighborhoods (PSN) Program. Funding will support efforts across the country to address violent crime, including the gun violence that is often at its core.

“This latest Project Safe Neighborhoods grant is critical to addressing the violent crime threatening cities and towns all across our country,” said Deputy Attorney General Lisa O. Monaco. “Ensuring the safety of all Americans is the highest priority for the Department of Justice, but when it comes to violent crime, there is not a one-size-fits-all solution. We have to work closely with local public safety agencies as well as community organizations to craft individual strategies unique to each community’s needs. Programs like Project Safe Neighborhoods and the funding it provides allow us to do just that.”

The North Carolina Gang Investigators Association (NCGIA) was awarded $181,000 in PSN funds. NCGIA will begin the process of administering the funds in support of local PSN projects in the Western District of North Carolina.

In addition to PSN funding, in 2021, more than $3.7 million in federal grants have been awarded to non-profit organizations, local law enforcement agencies, and Tribal government programs in the Western District.

“Federal grants are a vital financial resource for local law enforcement as well as organizations and service providers in the nonprofit sector. The awarded funds will be used to support critical work addressing a broad range of community needs and to enhance public safety activities in the Western District and the Qualla Boundary,” said U.S. Attorney Dena J. King.

Grantees in eight counties across the Western District and the Eastern Band of Cherokee Indians have received federal funding awarded by the Bureau of Justice Assistance, the Office of Violence against Women, and the Office of Community Oriented Policing Services.

In Buncombe County, funding allocated for the provision of comprehensive services to domestic and sexual violence survivors will be used to support case management, court advocacy, emergency shelter services, individual and group counseling, prevention and education programs and to enhance outreach efforts in the LBGTQ+ community.

Funding allocated to the Eastern Band of Cherokee Indians will support the civil and criminal Tribal court systems and improve access to those systems. Specifically, a portion of the funding will be used to create and implement a Juvenile Healing to Wellness Court, to address gaps in the juvenile system; increase juvenile behavioral health involvement in the court system; and develop screening tools to better determine the needs of juveniles for healing to wellness court intervention.

Funding allocated to law enforcement agencies in Buncombe, Catawba, Gaston, Haywood, Iredell, Mecklenburg, Rutherford and Union Counties will support community safety initiatives, prevention and education programs, technology and forensic analysis improvements, equipment and training, and mental health and wellness services for law enforcement.

“Investing in our communities, supporting victims and building a justice system that both keeps people safe and earns their trust – these are mutually reinforcing goals that stand at the heart of Project Safe Neighborhoods,” said Principal Deputy Assistant Attorney General Amy L. Solomon for OJP. “The Office of Justice Programs is pleased to join with our U.S. Attorneys’ Offices, and with jurisdictions across the country, as we work together to meet the challenges of crime and violence and achieve our shared aspirations of public safety and community trust.”

In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.

PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.

For a list of all grantees, please visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/FY21-Project-Safe-Neighborhoods-Awards.pdf  

The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at  www.ojp.gov. Information about these and other FY 2021 grant awards from the Office of Justice Programs can be found online at the OJP Grant Awards Page.

The Office on Violence Against Women (OVW) currently administers grant programs authorized by the Violence Against Women Act (VAWA) of 1994 and subsequent legislation.  More information about OVW and additional grant funding information is listed at: http://www.justice.gov/ovw/grant-programs.

The Office of Community Oriented Policing Services (COPS Office) is the component of the U.S. Department of Justice responsible for advancing the practice of community policing by the nation’s state, local, territorial, and tribal law enforcement agencies through information and grant resources.  For more information about the COPS Office grants please go to: http://www.cops.usdoj.gov/grants.

The Bureau of Justice Assistance (BJA) provides leadership and assistance to local criminal justice programs that improve and reinforce the nation’s criminal justice system.  BJA’s goals are to reduce and prevent crime, violence, and drug abuse and to improve the way in which the criminal justice system functions. BJA Funding announcements are posted at: https://www.bja.gov/funding.aspx

 

 

 

 

 

 

 

 

CHARLOTTE, N.C. – Dena J. King was officially sworn in today as United States Attorney for the Western District of North Carolina. Ms. King was nominated by President Joseph

U.S. Attorney Dena J. King

R. Biden Jr. on September 28, 2021, and was confirmed by the United States Senate on November 19, 2021. Chief U.S. District Judge Martin Reidinger administered the oath of office to U.S. Attorney King during a private ceremony at the federal courthouse in Charlotte. Ms. King is the first person of color to be appointed as U.S. Attorney in the Western District.

“I am honored to serve as United States Attorney for the Western District of North Carolina,” said Ms. King following the ceremony. “It is a privilege to lead a team of dedicated and talented public servants who are passionate about their work and delivering justice to the people we serve. I also look forward to working closely with our federal, state, local and Tribal law enforcement to ensure the safety of communities across Western North Carolina and engaging with our valued community partners in our shared mission to pursue equal justice under the law.”

With over 15 years in public service, U.S. Attorney King will lead an office of approximately 100 federal prosecutors and staff, located in Charlotte and in Asheville, that serves over three million residents throughout North Carolina’s 32 westernmost counties, including residents of the Eastern Band of Cherokee Indian Reservation.

U.S. Attorney King joined the U.S. Attorney’s Office in the Western District of North Carolina in September 2020, as Deputy Criminal Chief overseeing the Violent Crimes and Narcotics Section, and as Lead Task Force Attorney for the Office’s Organized Crime Drug Enforcement Task Force (OCDETF) program. Prior to that, Ms. King served as Special Assistant U.S. Attorney (2014-2015) and Assistant U.S. Attorney (2015-2020) at the U.S. Attorney’s Office in the Eastern District of North Carolina (EDNC). At EDNC, Ms. King was in charge of complex narcotics and OCDETF investigations and local impact cases. She also served as the District’s Reentry Coordinator, supervising a reentry team and leading all reentry initiatives, including participation in Drug and Reentry Courts, the Prison In-Reach Program, and Focused Deterrence Call-ins. She also worked closely with local reentry councils and forged reentry partnerships within that jurisdiction. At EDNC, Ms. King was also the Office’s Opioid Coordinator, leading the Heroin Education Action Team (HEAT), and was in charge of coordinating the Office’s efforts to educate stakeholders on the harm caused by drug abuse and misuse. During her tenure in the Eastern District, Ms. King also prosecuted federal racketeering cases, as well as violent crime and public corruption cases.

From 2009 to 2014, U.S. Attorney King served as an Enforcement Attorney with the Securities Division of the North Carolina Department of the Secretary of State. In that capacity, Ms. King represented the State in criminal and administrative enforcement actions and prosecuted violations of the Securities Act, Investment Advisers Act, and Commodities Act, among others.

From 2006 to 2008, Ms. King was an Assistant District Attorney for North Carolina’s 26th Prosecutorial District (Charlotte-Mecklenburg County), where she prosecuted criminal matters. While there, Ms. King was also the Office’s designated representative for Drug Treatment Court and Mental Health Court.

U.S. Attorney King graduated magna cum laude from North Carolina State University in 2003, where she received a Bachelor of Science degree in Business Management. Ms. King received her Juris Doctor in 2006, from North Carolina Central University School of Law.

U.S. Attorney King grew up in Charlotte and graduated from South Mecklenburg High School. She is involved in activities in her community and is a member of the Charlotte Alumnae Chapter of Delta Sigma Theta Sorority, Inc. and Silver Mount Missionary Baptist Church in Charlotte. 

          

CHARLOTTE, N.C. – A federal criminal indictment has been unsealed, charging five individuals with conspiracy to traffic methamphetamine and related offenses, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.

The indictment charges Charles Ray Hildebran, 46, of Hickory, N.C.; Phillip Anthony Godfrey, 47, of Newton, N.C.; Jeffrey Ben Pavkovich, 52, of Gainesville, Georgia; Britton Nicole Metcalf, 34, of Morganton, N.C.; and Billy Dean Potter, 36, of Hickory, N.C., with conspiracy to traffic methamphetamine. The defendants are also charged with possession with intent to distribute methamphetamine and/or distribution of methamphetamine. Hildebran, Godfrey, Pavkovich and Metcalf are also facing firearms offenses. (See chart below for a list of charges and statutory penalties for each defendant).

According to allegations contained in the indictment, from at least 2018 to October 2021, the defendants were involved in a drug trafficking network that distributed methamphetamine in and around Buncombe, Burke, Catawba, and McDowell Counties. The indictment further alleges that the defendants engaged in multiple drug sales and that Hildebran, Godfrey, Pavkovich and Metcalf also possessed firearms in furtherance of their drug trafficking activities. Over the course of the investigation, law enforcement recovered 20 illegal firearms, narcotics, and more than $100,000 in U.S. currency.

The defendants are currently in federal custody following their initial court appearances.

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

In making today’s announcement, Acting U.S. Attorney Stetzer thanked the Drug Enforcement Administration in Charlotte and Atlanta; the Department of Homeland Security- Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the North Carolina State Bureau of Investigation; the North Carolina Highway Patrol; the North Carolina Department of Public Safety, Community Corrections; the Georgia Department of Corrections; the Burke County Sheriff’s Office; the Caldwell County Sheriff’s Office; the Catawba County Sheriff’s Office; the McDowell County Sheriff’s Office; the Hickory Police Department; the Long View Police Department; and the Newton Police Department for their coordinated investigation of this case.

Assistant United States Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.

CHARLES RAY HILDEBRAN

1

                       

Methamphetamine Conspiracy

-50 grams or more actual

-500 grams or more mixture

10 years to life in prison, maximum fine of $10,000,000

 

8

Distribute Methamphetamine

-5 grams or more actual

5 to 40 years in prison, maximum fine of $5,000,000

 

9, 11

Possess with Intent to Distribute Methamphetamine

-Count 9: 500 grams or more mixture

-Count 11: 50 grams or more actual and 500 grams or more mixture

10 years to life in prison, maximum fine of $10,000,000

 

10

Distribute Methamphetamine

-50 grams or more actual and 500 grams or more mixture

10 years to life in prison, maximum fine of $10,000,000

 

12

Possess Firearms in Furtherance of a Drug Trafficking Crime

5 years to life in prison, consecutive to a sentence imposed on a drug count, maximum fine of $250,000

 

13

Possess Firearms by Felon

 

10 years in prison, maximum fine of $250,000

PHILLIP ANTHONY GODFREY

1

 

Methamphetamine Conspiracy

-50 grams or more actual

-500 grams or more mixture

10 years to life in prison, maximum fine of $10,000,000

 

3, 18

 

Possess with Intent to Distribute Methamphetamine

-Count 3: 50 grams or more actual

-Count 18: 50 grams or more actual and 500 grams or more mixture

10 years to life in prison, maximum fine of $10,000,000

 

4

                       

Possess a Firearm in Furtherance of a Drug Trafficking Crime

5 years to life in prison, consecutive to a sentence imposed on a drug count, maximum fine of $250,000

 

19

Possess with Intent to Distribute Methamphetamine

-5 grams or more actual

5 to 40 years in prison, maximum fine of $5,000,000

 

JEFFREY BEN PAVKOVICH

1

 

Methamphetamine Conspiracy

-50 grams or more of actual

-500 grams or more mixture

10 years to life in prison, maximum fine of $10,000,000

 

2

 

 

Possess with Intent to Distribute Methamphetamine

-50 grams or more mixture

5 to 40 years in prison, maximum fine of $5,000,000

 

15

Distribute Methamphetamine

-50 grams or more actual

10 years to life in prison, maximum fine of $10,000,000

 

16

Possess Firearms in Furtherance of a Drug Trafficking Crime

5 years to life in prison, consecutive to a sentence imposed on a drug count, maximum fine of $250,000

 

17

Possess Firearms by Felon

 

10 years in prison, maximum fine of $250,000

BRITTON NICOLE METCALF

1

Methamphetamine Conspiracy

-50 grams or more actual

-500 grams or more mixture

10 years to life in prison, maximum fine of $10,000,000

 

5

Possess with Intent to Distribute Methamphetamine

-50 grams or more mixture

5 to 40 years in prison, maximum fine of $5,000,000

 

6

Possess Firearms in Furtherance of a Drug Trafficking Crime

5 years to life in prison, consecutive to a sentence imposed on a drug count, maximum fine of $250,000

 

7

Possess Firearms by Felon

 

10 years in prison, maximum fine of $250,000

 

9, 14

Possess with Intent to Distribute Methamphetamine

-Count 9: 500 grams or more mixture

-Count 14: 50 grams or more actual and 500 grams or more mixture

10 years to life in prison, maximum fine of $10,000,000

BILLY DEAN POTTER

 

1

Methamphetamine Conspiracy

-50 grams or more actual

-500 grams or more mixture

10 years to life in prison, maximum fine of $10,000,000

 

21, 23, 24

Distribute Methamphetamine

-50 grams or more actual

10 years to life in prison, maximum fine of $10,000,000

 

CHARLOTTE, N.C. – Jonathan Wheeler Johnston, 40, of Norman, Oklahoma, was sentenced today to 25 years in prison and a lifetime of supervised release for receipt and attempted receipt of child pornography, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. As part of his sentence, Johnston was also ordered to register as a sex offender, and to pay $5,900 in restitution and $40,100 in special assessments.

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

According to court documents, in April 2019, Johnston began communicating with a 15-year-old minor female located in the Western District of North Carolina, whom he met in an online chatroom for teenagers. After chatting with the teenager online, Johnston mailed the minor a cellphone, for the purpose of exchanging sexually explicit images and engaging in sexually explicit conduct. Court records show that the minor’s parent contacted law enforcement after discovering the cellphone and finding texts and other sexually explicit exchanges between the minor and Johnston. A subsequent forensic analysis of the minor’s cellphone by the FBI revealed that Johnston had repeatedly asked the minor for sexually explicit photos and videos, and had sent the minor links to pornographic material, including videos containing bestiality. In addition, over the course of their communications, Johnston sent the minor sexually explicit images of himself and instructed the minor not to disclose to anyone his name or age because he could get in trouble.

Court records show that when the minor informed Johnston that law enforcement were aware of their communications, Johnston attempted to cover his conduct by wiping his devices of evidence concerning his exchanges with the minor.

According to court records, in 2013, while Johnston was serving in the U.S. Army, he was convicted of possession, manufacture and distribution of child pornography. As a result of that conviction, Johnston was sentenced to six years in prison, was dishonorably discharged and was required to register as a sex offender for six years. His parole from that conviction ended in March 2018, just a little over a year before he began communicating with the 15-year-old minor located in the Western District of North Carolina.

Johnston 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 Stetzer thanked the FBI, the Huntersville Police Department, and the Norman Police Department in Oklahoma for their investigation of the case.

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

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

 

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell handed down sentences of up to 15 years in prison to five defendants for their involvement in a methamphetamine trafficking ring, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. 

Judge Bell sentenced the defendants as follows:

• William Jay Allen, Jr., 29, of Vilas, N.C. was sentenced to 180 months in prison, followed by five years of supervised release. Allen pleaded guilty to drug trafficking conspiracy and distribution methamphetamine.
• Justin Kevin Anderson, 31, of Boone, N.C. was sentenced to 135 months in prison, followed by six years of supervised release. Anderson pleaded guilty to drug trafficking conspiracy and distribution methamphetamine.
• Thomas Burns Shelley, III, 37, of Blowing Rock, N.C., was sentenced to 132 months in prison and five years of supervised release. Shelley pleaded guilty to conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
• Jeffrey David Miller, of Sugar Grove, N.C., was sentenced to 36 months in prison and three years of supervised release. Miller pleaded guilty to conspiracy to distribute methamphetamine and distribution of methamphetamine.
• Danielle Denise Dieters Ward, 42, of Morganton, N.C., was sentenced to 36 months in prison and five years of supervised release. Ward pleaded guilty to conspiracy to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine.

A sixth co-defendant, Timothy Wilson Critcher, 47, of Boone, N.C., is scheduled to be sentenced on December 7, 2021. 

According to court documents and the sentencing hearing, from 2018 to 2020, Allen and his co-conspirators trafficked more than 12 kilograms of crystal methamphetamine in Ashe and Watauga Counties, and elsewhere. Court documents show that Allen was the source of supply for the methamphetamine, and his co-defendants operated as couriers and sellers in the conspiracy.

All of the defendants are in currently custody of the U.S. Marshals Service and will be transferred to the custody of the U.S. Bureau of Prisons upon designation of a federal facility.

This case is supported by the Organized Crime and Drug Enforcement Task Force (OCDETF) as part of an ongoing investigation focusing on drug organizations trafficking large quantities of methamphetamine in Western North Carolina. To date, more than 200 individuals have been prosecuted, and law enforcement have seized more than 20 kilograms of crystal methamphetamine, $500,000 in U.S. currency and other assets, and dozens of firearms.

OCDETF identifies, disrupts, and dismantles the highest-level 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, Acting U.S. Attorney Stetzer recognized the following federal, state and local agencies which partnered in this investigation, and thanked them for their continued cooperation and support:  the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); the North Carolina State Bureau of Investigation (NC SBI); the Ashe County Sheriff’s Office; the Watauga County Sheriff’s Office; the Boone Police Department; and the Johnson County Tennessee Sheriff’s Office in Tennessee.

The prosecutions are being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.

CHARLOTTE, N.C. – On Wednesday, November 16, 2021, U.S. District Judge Robert J. Conrad Jr. sentenced four Charlotte men to prison for their involvement in a bank fraud and identity theft scheme, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Two of the defendants were also sentenced on separate charges for receiving fraudulent COVID-19 Unemployment Insurance benefits.

Jamel Johnson, 31, of Charlotte, was sentenced to 70 months in prison. David Clarke, 30, of Charlotte, was ordered to serve 54 months in prison. Justin Parks, 32, of Charlotte, was sentenced to 65 months in prison, and Mikael Roberts 27, also of Charlotte, was ordered to serve 57 months in prison.

On June 19, 2020, a federal grand jury indicted the four men for executing a bank fraud scheme using stolen identities. According to court documents and the sentencing hearings, from as early as April 2019, the defendants obtained over the internet and elsewhere multiple victims’ Personal Identifying Information (PII), including names, Social Security Numbers, dates of birth, and addresses, which they used to apply for and obtain fraudulent bank loans – including automobile and personal loans – and other goods, such as Apple iPhones and iPads. During the course of the scheme, the co-conspirators fraudulently attempted to obtain more than $1,000,000 in fraudulent loans and merchandise.

In September and October 2020, federal wire fraud charges were filed separately against Johnson and Clarke, for using stolen identities to obtain COVID-19 Unemployment Insurance (UI) benefits. According to court documents filed in these proceedings, over the course of the investigation into the bank loan scheme, law enforcement discovered that Johnson and Clarke were executing a separate scheme involving COVID-19 UI benefits. Court records show that, Johnson and Clarke defrauded the U.S. Department of Labor, the State of Wisconsin, and the State of Arizona by submitting fraudulent claims for unemployment insurance benefits in the names of identity theft victims. During the relevant time-period, Johnson fraudulently obtained more than $189,912 in fraudulent unemployment benefits using the names of approximately 70 victims. Similarly, Clarke obtained over $79,000 in fraudulent UI benefits using the compromised identities of more than 60 victims.

In announcing the sentences, Judge Conrad stated regarding Johnson and Clarke’s COVID-19 fraud scheme that taking advantage of the pandemic was “strikingly reprehensible,” and noted that it is important to “punish defendants who seek to profit from national disasters.”

Acting U.S. Attorney Stetzer commended the U.S. Postal Inspection Service (USPIS) for their investigative efforts and thanked the Atlanta Regional Office of the U.S. Department of Labor, Office of the Inspector General, and the Charlotte Mecklenburg Police Department for their invaluable assistance.

* * *

In a separate case, Judge Conrad also sentenced Malcolm Bynum, 29, of Charlotte, to 101 months in prison for aggravated identity theft and conspiracy to commit bank and wire fraud. Court documents filed in this case reveal that Bynum and his co-conspirators used the stolen PII of victims to create fake identifications they then used to obtain fraudulent loans and merchandise in the victims’ names. Over the course of the scheme, Bynum and his co-conspirators obtained more than $150,000 in fraudulent goods and loans.

Bynum’s case was investigated by USPIS and CMPD. The prosecution of both cases was handled by Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte.  

CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced that Darryl Damon Leach, 36, of Charlotte, was sentenced yesterday to 94 months in prison and three years of supervised release for a firearms offense.  

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 Acting U.S. Attorney Stetzer in making this announcement.

According to filed documents and statements made in court, on March 5, 2020, CMPD officers responded to a service call at a Shell gas station located at 1125 Sugar Creek Road in Charlotte. The gas station clerk told officers responding to the scene that during his encounter with Leach, the defendant, who was accompanied by a female witness, produced a Hi-Point semiautomatic pistol and proceeded to punch the store clerk until the clerk fell to the ground. Leach and the female witness then fled the scene. Court records show that Leach has two prior convictions of Robbery with a Dangerous Weapon, and Second Degree Kidnapping and Burglary convictions and he is prohibited from possessing a firearm.

According to court records, Leach was arrested on March 14, 2020. When law enforcement apprehended Leach, they also recovered from his vehicle the firearm he used during the gas station incident. At the time of Leach’s arrest, the defendant was with the same female witness who was with Leach during his encounter with the gas station clerk. Leach was subsequently charged with state offenses and released on bond. While on bond, Leach and an accomplice assaulted the female witness, in an attempt to intimidate and induce her to claim that the firearm seized from Leach belonged to her. Court records show that Leach and his accomplice viciously beat, punched, and put the witness in a headlock. As a result, the witness sustained extensive injuries and required medical attention.

On December 20, 2020, Leach pleaded guilty to possession of a firearm by a convicted felon. As a result of Leach’s assault on the female witness, U.S. District Judge Robert J. Conrad Jr. enhanced Leach’s sentence for attempting to obstruct justice.

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

CHARLOTTE, N.C. – A Charlotte man charged with straw purchasing firearms and dealing in firearms without a license appeared in federal court in Raleigh, N.C. today, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. A federal grand jury in Charlotte indicted Thomas Evans Kelly, 28, in October. Federal agents arrested Kelly in Durham, N.C. on Tuesday, November 16, 2021.

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

According to allegations in the indictment, in August 2019, Kelly purchased three firearms from a licensed firearms dealer in Charlotte. Over the course of the transaction, Kelly made false and fictitious statements to the firearms dealer and falsely certified on federal forms associated with the purchase of the firearms that he was the actual buyer/transferee of the firearms. The indictment also alleges that between July 29, and October 1, 2019, Kelly engaged in the business of dealing in firearms without a license.

Kelly was released on bond after the hearing. The charge of making a false statement during the purchase of a firearm carries a maximum sentence of 10 years and a $250,000 fine. Dealing in firearms without a license has a statutory maximum penalty of five years in prison and a $250,000 fine.

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

The ATF led the investigation. Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

 

 

 

CHARLOTTE, N.C. – James Kristoffer Cantley, 39, formerly of Newton, N.C., was sentenced today by U.S. District Judge Kenneth D. Bell to 210 months in prison and five years of supervised release for trafficking methamphetamine, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. In July 2021, Cantley pleaded guilty to drug trafficking conspiracy, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of drug trafficking.

Cantley is one of 14 defendants indicted by a federal grand jury in June 2020, for trafficking methamphetamine from Georgia into Western North Carolina. According to filed court documents and court proceedings, from 2018 through April 2019, the defendants were involved in a drug network that trafficked and distributed methamphetamine in Catawba, Lincoln, Caldwell, and Alexander Counties and elsewhere.  Over the course of the investigation, law enforcement seized narcotics, at least 23 firearms, and more than $250,000 in drug proceeds.

The other 12 other defendants sentenced to date are: 

• Michael James Notheisen, 35, of Vale, N.C., was sentenced to 240 months in prison and five years of supervised release.
• Tiffany Christmas Hirani, 34, of Monroe, Georgia, was sentenced to 210 months in prison and five years of supervised release.
• Aaron Douglas Goodson, 31, of Lincolnton, N.C., was sentenced to 210 months in prison and five years of supervised release.  
• Brian Duane Martz, 42, was sentenced to 191 months in prison and five years of supervised release.
• Priscilla Chapman Lambert, 34, of Hickory, N.C., was sentenced to 151 months in prison and five years of supervised release.   
• Thomas Dewayne Simmons, Jr., 35, of Monroe, Georgia, was sentenced to 150 months in prison and five years of supervised release.
• Ruth Marie Duggar, 38, of Claremont, N.C., was sentenced to 132 months in prison and five years of supervised release.
• Lowell Thomas Messer, 44, of Newton, N.C., was sentenced to 120 months in prison and five years of supervised release.
• Samantha Jean Taylor, 26, of Newton, N.C., was sentenced to 120 months in prison and five years of supervised release.
• Kimberly Deann Bumgarner, 57, of Granite Falls, N.C., was sentenced to 60 months in prison and two years of supervised release.  
• Cynthia Roxanne Shook, 36, of Conover, N.C., was sentenced to 60 months in prison and two years of supervised release.
• Jason Keith Reichard, 39, of Ridgecrest, N.C., was sentenced to 36 months in prison and three years of supervised release.   

The remaining defendant, Jonathan Corey Daniel, has pleaded guilty to drug trafficking conspiracy and possession with intent to distribute methamphetamine, and is currently awaiting sentencing.

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

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

                                              

CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that Ron McQuay Garland, 39, of Charlotte, was sentenced to 319 months in prison and five years of supervised release, for his role in a string of armed robberies, attempted armed robberies, and related firearms offenses.

Acting U.S. Attorney Stetzer 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 Johnny Jennings of the Charlotte-Mecklenburg Police Department.

According to filed court documents, evidence presented at Garland’s trial, and witness testimony, on August 19, 2019, Garland, robbed at gunpoint a Zaxby’s fast food restaurant, located at 8905 Albemarle Road in Charlotte. Garland entered the restaurant while brandishing a black semiautomatic pistol at the employees. Garland then ordered an employee to open the cash register and took approximately $1,000 in cash. Garland subsequently fled the scene with a co-defendant. According to trial evidence, on September 21, 2019, Garland also robbed a Family Dollar store located at 4130 Rozzelles Ferry Road, in Charlotte. As witnesses testified, Garland entered the store and brandished a handgun at a store employee. Garland then forced the employee to open the register and Garland stole approximately more than $1,000 before fleeing.

According to court documents and trial evidence, Garland also attempted to rob two other Charlotte area businesses. On August 21, 2019, Garland attempted to rob an Arby’s fast food restaurant, located at 2501 Little Rock Road in Charlotte. Garland entered the restaurant, pointed a handgun at the employees and demanded money from the cash register. Garland was unable to open the register but took an employee’s cell phone before fleeing the scene with a co-defendant. On February 11, 2020, Garland also attempted to rob a Jack-in-the-Box restaurant, located at 10121 North Tryon Street in Charlotte. Garland pointed a firearm at an employee who was taking out the trash and attempted to enter the restaurant, first through the back door and then through the front door but was ultimately unsuccessful. Garland stole a wallet from a customer in the parking lot after eventually abandoning the attempted robbery. Garland fled the scene with a co-defendant and was apprehended early the next morning by the FBI and CMPD.  

In July 2021, a federal jury convicted Garland of two counts of robbery of a business affecting interstate commerce, or “Hobbs Act” Robbery; two counts of attempted Hobbs Act Robbery; two counts of possession of a firearm during and in relation to a crime of violence; and one count of felon in possession of a firearm. Garland’s co-defendant, Chan Tate, was previously sentenced after pleading guilty to aiding and abetting Hobbs Act Robbery and attempted Hobbs Act Robbery.

The investigation was handled by the FBI’s Violent Crimes Task Force and CMPD. 

Assistant U.S. Attorneys William Bozin and Taylor Stout of the of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.

CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced that Carnell Charles Caple Jr., 32, of Wadesboro, N.C., was sentenced yesterday to 76 months in prison and three years of supervised release on federal drug and gun charges.

Robert R. Wells, Special Agent in Charge of the FBI in Charlotte, and Chief Thedis Spencer of the Wadesboro Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.

According to court documents and the sentencing hearing, on November 12, 2020, a Wadesboro Police Department detective conducted a traffic stop of the vehicle in which Caple was riding as a passenger. Over the course of the traffic stop, the officer asked the driver of the vehicle to step outside and instructed Caper to remain in the car. Caple did not comply and instead attempted to flee on foot. Law enforcement at the scene observed Caple discard a black bag while he ran with a firearm in his hand. Shortly thereafter, Caple tripped and fell and was placed under arrest.

According to court records, officers recovered Caple’s firearm, which was loaded with 15 rounds of ammunition and one additional round in the chamber. Law enforcement later determined that the firearm was stolen. Law enforcement also recovered Caple’s black bag, in which they found narcotics, drug paraphernalia, and another magazine loaded with 10 rounds of ammunition. Court records show that at the time of the offense Caple was on supervised release for a previous federal offense. 

On July 22, 2021, Caple pleaded guilty to possession with intent to distribute methamphetamine and cocaine, and possession of a firearm by a convicted felon. He is currently in federal custody and will be transferred to custody of the federal Bureau of Prisons upon designation of a federal facility. 

In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI and the Wadesboro Police Department for their investigation of the case. Assistant United States Attorney Regina Pack, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

CHARLOTTE, N.C. – Louie Raymond Forney, 30, of Charlotte, was sentenced on Monday, November 8, 2021, to 118 months in prison for drug trafficking and firearms offenses, and for violating the terms of his supervised release, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. also ordered Forney to serve three years of supervised release after he completes his prison term.

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 Acting U.S. Attorney Stetzer in making today’s announcement. 

According to filed court documents and the sentencing hearing, on June 26, 2020, CMPD officers attempted to conduct a traffic stop of the vehicle Forney was driving. Forney did not comply and instead attempted to evade the police by driving at high speed. Over the course of the pursuit, law enforcement observed Forney throwing a backpack out of the vehicle. A short while later, Forney stopped the vehicle and was subsequently arrested by CMPD officers while he attempted to flee on foot. Court records show that law enforcement recovered Forney’s backpack, which contained a mixture of fentanyl and heroin, and an assault rifle loaded with a high-capacity magazine. Court records also show that Forney was on federal supervised release for a previous federal firearms conviction when he committed the new offenses.

On June 10, 2021, Forney pleaded guilty to possession with intent to distribute fentanyl and heroin and possession of a firearm by a convicted felon. He is currently in federal custody, and upon designation of a federal facility, he will be transferred into custody of the federal Bureau of Prisons. 

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

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

 

           

 

 

CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that Dallas Devon Leak, 28, of Wadesboro, N.C. was sentenced to 100 months in prison and two years of supervised release for a federal firearms offense.

Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Thedis Spencer of the Wadesboro Police Department (Wadesboro PD) join Acting U.S. Attorney Stetzer in making today’s announcement.

According to court documents and today’s sentencing hearing, on April 8, 2020, at approximately 10:17 p.m., the Wadesboro Police Department received a 911 call regarding a burglary and shooting at a residence in Anson County. The officers who responded to the scene found a male victim inside the residence with an apparent gunshot wound to his leg. Officers located Leak during a subsequent search of a wooded area behind the victim’s home. When the officers found Leak, he was lying face down on top of a firearm, which was loaded with a large capacity magazine and one round in the chamber. Over the course of the investigation, law enforcement determined that Leak’s firearm had previously been reported stolen.

On January 13, 2021, Leak pleaded guilty to possession of a firearm by a convicted felon. He is currently in federal custody and will be transferred to custody of the federal Bureau of Prisons upon designation of a federal facility. In making today’s announcement, Acting U.S. Attorney Stetzer thanked the ATF and the Wadesboro Police Department for their investigation of the case.

Assistant United States Attorney Regina Pack, of the U.S. Attorney’s Office in Charlotte, prosecuted the case. This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

CHARLOTTE, N.C. – Tamara Devonna McClellan, 32, of Charlotte, was ordered to serve 115 months in prison late yesterday for assaulting a federal Probation Officer, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. also ordered McClellan to serve three years under court supervision upon completion of her prison term.

According to filed documents and statements made in court, on December 20, 2019, law enforcement attempted to detain McClellan at her residence in Charlotte. Upon seeing the law enforcement officers, McClellan got into the driver’s seat of an SUV vehicle parked on the driveway. As a U.S. Probation Officer handcuffed one of McClellan’s wrists, McClellan put the vehicle in reverse, knocking down the Probation Officer. As a result, the Probation Officer sustained serious physical injuries from the vehicle as McClellan fled the scene. The abandoned vehicle was located a few blocks from the scene. On December 24, 2019, Deputy U.S. Marshals apprehended McClellan in Rustburg, VA.

On March 3, 2021, McClellan pleaded guilty to assault with a deadly weapon on a federal officer in the performance of her duties, inflicting bodily injury. McClellan is currently in federal custody and will be transferred to the custody of the Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, Acting U.S. Attorney Stetzer thanked the Bureau of Alcohol, Tobacco, Firearms & Explosives, the U.S. Probation Office, the U.S. Marshals Service, and the Charlotte Mecklenburg Police Department for their investigation of the case.

Assistant U.S. Attorney Robert Gleason, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.  

CHARLOTTE, N.C. – The supplier of a local drug network has been sentenced to 30 years in prison, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Matthew Wondra, 34, of Murphy, N.C., was also ordered to serve five years of supervised release after he is released from prison. 

According to court documents and yesterday’s sentencing hearing, in September 2018, law enforcement became aware that Wondra was operating as a supplier for a local drug network in Cherokee and Graham Counties and elsewhere. Court records show that Wondra frequently traveled to Georgia to purchase kilogram quantities of methamphetamine and heroin, which he then distributed to dealers in Western North Carolina. Throughout the investigation, Wondra engaged in multiple drug transactions, and at times possessed firearms in connection with his drug trafficking activities. On one occasion, Wondra put a gun to the head of a person he accused of stealing drug proceeds from him during the course of the conspiracy and he threatened to kill that person. According to filed documents, from September 2018 to August 2019, Wondra was responsible for purchasing and distributing more than 19 kilograms of methamphetamine and over three kilograms of heroin.

On October 30, 2020, Wondra pleaded guilty to conspiracy to possess with intent to distribute methamphetamine and heroin. At yesterday’s court hearing, Wondra received sentencing enhancements for weapons possession, making a credible threat, maintaining a premises for the purpose of storing and distributing controlled substances, and for his leadership role during the drug conspiracy.

Wondra’s co-defendants, Jamie Allen and Derek Wilson, were previously sentenced to 10 years and 4.25 years in prison, respectively, for their role in the conspiracy.

In making today’s announcement, Acting U.S. Attorney Stetzer thanked the Drug Enforcement Administration’s Asheville Post of Duty; the Bureau of Indian Affairs; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Postal Inspection Service; the Cherokee County Sheriff’s Office; the Jackson County Sheriff’s Office; the Swain County Sheriff’s Office; the Graham County Sheriff’s Office; the Buncombe County Sheriff’s Office; the Henderson County Sheriff’s Office; the Rutherford County Sheriff’s Office; the Cherokee Indian Police Department; the Murphy Police Department; and the Asheville Police Department for their investigation of the case.

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

This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that Krissy Marie Biddix, 43, of Asheville, was sentenced to 14 years in prison followed by four years of supervised release for trafficking in narcotics.

According to filed court documents and today’s sentencing hearing, on January 7, 2020, at approximately 8:50 p.m., an officer with the Weaverville Police Department conducted a traffic stop of Biddix’s vehicle for driving with an expired license plate. Over the course of the traffic stop, the officer determined that Biddix had three outstanding state warrants for probation violations and failure to appear in court. Court records show that Biddix was taken into custody and during a subsequent search of the Biddix’s vehicle law enforcement seized trafficking quantities of several types of controlled substances, including fentanyl, methamphetamine, heroin, cocaine and crack cocaine, as well as hydrocodone, Xanax and marijuana. Law enforcement also seized six doses of Narcan, which is used to rapidly reverse the effects of an opioid overdose, a loaded firearm, and more than $4,300 in cash.

On January 22, 2021, Biddix pleaded guilty to possession with intent to distribute controlled substances. She is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, Acting U.S. Attorney Stetzer thanked the Drug Enforcement Administration’s Asheville Post of Duty, the Buncombe County Sheriff’s Office, the Weaverville Police Department, and the Asheville Police Department for their investigation of the case.

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

 

 

CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced that a Utah man was sentenced to 42 months in prison for orchestrating an investment scheme involving a start-up mining and precious metals company. Andrew Malcolm Lovett, 60, and a former resident of Cornelius, N.C., also was ordered to serve two years under court supervision after he is released from prison and to pay more than $820,000 as restitution. U.S. District Judge Kenneth D. Bell handed down Lovett’s sentence.

Mona Passmore, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join Acting U.S. Attorney Stetzer in making today’s announcement.

According to court documents and today’s sentencing hearing, from 2014 to 2016, Lovett defrauded more than 30 victims out of nearly $850,000 by convincing them to invest in a start-up mining and precious metals company, Safari Minerals, Inc. (Safari), and other entities with which Lovett was affiliated, by falsely telling them their money would be used to grow Safari and to develop various purported mining projects. Among other things, Lovett described Safari to his investors as “an emerging junior exploration and mining company” that focused on acquiring and developing properties in Nevada which “contains an abundance of … Gold, Silver, Platinum Group Metals and Rare Earth Elements….” Lovett also misled investors by touting his experience as a seasoned businessman with a wealth of knowledge in the mining industry and promoted his reputation as a man of faith.

As Lovett previously admitted in court, over the course of the scheme, Lovett lied to investors about the progress and viability of Safari, and failed to disclose to investors his previous criminal history, including his previous conviction for bank fraud. Lovett also did not tell his victims he diverted several hundred thousand dollars from Safari for his own personal use. In fact, rather than use the victims’ money to grow Safari’s business as promised, Lovett used a significant portion of the investments to pay for rent, entertainment and travel, and other personal expenses, and to make Ponzi-style payments to other victim investors.

In March 2021, Lovett pleaded guilty to securities fraud and transactional money laundering.

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

Assistant United States Attorneys Daniel Ryan and Caryn Finley, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

 

CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that Phong Duc Nguyen, 35, of Statesville, N.C., was sentenced to 182 months in prison and five years of supervised release for a federal firearms offense.

According to court documents and today’s sentencing hearing, in the early hours of November 25, 2019, an officer with the Monroe Police Department conducted a traffic stop of the vehicle Nguyen was driving. Over the course of the traffic stop, the officer determined that Nguyen’s license was suspended and that there were multiple outstanding warrants for his arrest. While placing Nguyen under arrest, the officer located a firearm holster and ammunition in Nguyen’s pants pocket. Court records show that when the officer searched Nguyen’s vehicle, he located a firearm on the right side of the driver’s seat, and found marijuana and crack cocaine elsewhere inside the vehicle.

On February 17, 2021, Nguyen pleaded guilty to possession of a firearm by a convicted felon. At today’s sentencing hearing, the Court classified Nguyen as an “Armed Career Criminal.”

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

In making today’s announcement, Acting U.S. Attorney Stetzer thanked the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Monroe Police Department for their investigation of the case.

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

 

CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney ordered Robert Allen McClinton, 32, of Charlotte, to serve 135 months in prison and eight years of supervised release on drug trafficking charges, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Judge Whitney also ordered McClinton to serve an additional consecutive 24 months in prison for violating the terms of his supervised release.

Robert R. Wells, Special Agent in Charge of the FBI in Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join Acting U.S. Attorney Stetzer in making today’s announcement.

McClinton, who is a member of the United Blood Nation (Bloods) gang, was previously sentenced to 43 months in federal prison, after pleading guilty to RICO Conspiracy and possession with intent to distribute crack cocaine. According to court documents, on September 5, 2019, while McClinton was on supervised release, a CMPD officer attempted to conduct a traffic stop of the vehicle McClinton was driving. McClinton at first complied and stopped at a gas station, however, when the CMPD officer approached McClinton’s vehicle, McClinton sped off at a high speed and came close to striking the officer. Law enforcement proceeded to follow McClinton while he attempted to evade the police. Court records show that CMPD officers arrested McClinton after his vehicle collided into a tree. Over the course of the investigation law enforcement seized narcotics from McClinton and his vehicle. On May 11, 2021, a federal jury convicted McClinton of two counts of possession with intent to distribute cocaine and crack cocaine.

McClinton 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 conducted by the FBI and CMPD. Assistant U.S. Attorneys Christopher Hess and Taylor Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that Bryan John Cohen, 46, of Indian Trail, N.C. was ordered to serve 42 months in prison and a year of supervised release for orchestrating an investment scheme. He was also ordered to pay $291,000 as restitution.

Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), in North Carolina, joins Acting U.S. Attorney Stetzer in making today’s announcement. 

According to filed court documents and the sentencing hearing, from 2015 to 2020, Cohen defrauded at least 10 victims of more than $385,000, by inducing them to invest money in his purported investment businesses, OTC Bully, Ascension Trading, and Recharge Investments, and in other business ventures. Court records show that Cohen falsely represented to victims, most of whom were Cohen’s friends and acquaintances, that he was a financially savvy investor with a successful track record in the financial industry, and that he would invest their funds using a computer algorithm called the “Dewey System.”

As Cohen previously admitted in court, to convince victims their investments were legitimate, Cohen provided them with bogus Investment Agreements that purported, among other things, that Cohen would not charge any investment fees, and that the money would be invested in a manner “expected of a reputable, experienced and competent professional investment manager.” To further lull victims into thinking their investments were safe, Cohen supplied them with fake profit and loss sheets on a monthly basis, which falsely indicated the victims’ investments were growing.

Contrary to claims Cohen made to his victims, court documents show that Cohen did not invest their money as promised. Rather, Cohen used the money to pay for personal expenses and to make Ponzi-style payments to older investors using new investors’ money. In November 2020, Cohen pleaded guilty to wire fraud.

In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI in Charlotte, and the North Carolina Department of Public Safety, Special Operations and Intelligence Unit, for their investigation.

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

 

CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad Jr. sentenced Andrivia Wells, 54, of Charlotte, today to 70 months in prison for tax fraud, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Wells, who also goes by the names Tina Smith, Tina Harris, Andrivia Smith, and Andrivia Harris, was also ordered to serve one year under court supervision and to pay $3,373,595 as restitution.

Mona Passmore, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, joins Acting U.S. Attorney Stetzer in making today’s announcement.

According to filed court documents and today’s sentencing hearing, beginning in at least 2011 and continuing through June 2019, Wells owned and operated Rush Tax Service, a return preparation business with multiple locations in Charlotte. Between 2013 and 2017, Wells prepared, or caused to be prepared, more than 6,000 tax returns that falsely claimed more than $3 million in refunds. Wells and Rush Tax Service received over $1.2 million in fees from her clients. The tax preparation fees were taken directly from the clients’ tax refunds and in many cases the clients were unaware of how much they were being charged, which was frequently more than $500.

Court records also show that Wells prepared income tax returns for clients for 2013 through 2018 that claimed false filing statuses, false American Opportunity and education credits, and false fuel tax credits, among others, in order to inflate refunds paid by the IRS. In addition to filing fraudulent income tax returns for her clients, Wells falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2014, 2015, 2016, and 2017, and in 2018, she failed to file any tax return with the IRS.  In addition, her 2012 through 2017 tax returns also falsely claimed American Opportunity credits and fuel tax credits, and the incorrect filing status. 

On May 17, 2017, after being notified she was the subject of a criminal investigation and after being served a summons for records of Rush Tax Service, a fire was intentionally set at Rush Tax Service’s Beatties Ford Road location.  The fire destroyed client files, financial records, and computer hardware. Subsequently, a grand jury subpoena was served on Rush Tax Service for records. It was at a February 2019 grand jury appearance that the government was first alerted to the May 2017 fire. After the indictment was returned on June 20, 2019, Wells was arrested and detained. On June 30, 2019, a second fire was intentionally set destroying Rush Tax Service documents that were responsive to the grand jury subpoena. At today’s sentencing, the Court found that Wells obstructed the administration of justice with respect to the investigation and prosecution of the offense and stated that this was “one fire too many.” As a result, the Court also found that Wells did not accept responsibility for her crimes.

In announcing today’s sentence, Judge Conrad said Wells “showed a profound disrespect for the law” and that “the tax structure breaks down when taxpayers and tax preparers” file false tax returns.

Wells pleaded guilty to aiding and assisting in the filing of false tax returns and filing a false tax return.

Acting U.S. Attorney Stetzer commended IRS-CI for their investigation of the case. Assistant U.S. Attorney Caryn Finley with the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – Joseph A. DiBruno, Jr., 52, of Gastonia, N.C., was indicted by a federal grand jury on bank fraud charges, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. The indictment was unsealed this morning following DiBruno’s arrest and initial appearance before U.S. Magistrate Judge David C. Keesler.

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

According to the indictment, in 2008, DiBruno was sentenced to 262 months in prison after pleading guilty in the Western District of North Carolina to conspiracy to defraud the United States, money laundering conspiracy, and concealment of assets. On April 8, 2020, DiBruno was approved by the federal Bureau of Prisons for placement on home confinement due to the COVID-19 pandemic. The indictment alleges that after his release to home confinement in May 2020, DiBruno obtained or attempted to obtain loans from at least two financial institutions, based on fraudulent statements and false information he submitted on loan applications. For example, on one loan application DiBruno falsely claimed that he had been employed as Director of Data Analytics by a company listed as M.R.S., that he earned an average monthly salary of up to $8,000, and that had he had lived at the residential address listed on the application for over four years, all of which information was untrue. The indictment also alleges that between May 2020 and June 2021, DiBruno submitted at least five fraudulent loan applications to two financial institutions seeking funds totaling over $120,000.

DiBruno is charged with five counts of making false statements to a credit union. Each count carries a penalty of 30 years in prison and a $1million fine.

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

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

CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced Solomon Davon Gilliam, 37, of Charlotte today to 108 months in prison for robbing a store owner at gunpoint, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.  Judge Cogburn also ordered Gilliam to serve two years of supervised release after he is released from prison.

Richard 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, join Acting U.S. Attorney Stetzer in making today’s announcement.

According to filed court documents and today’s sentencing hearing, on June 30, 2018, at approximately 2:00 p.m., Gilliam entered Tobacco 2022, a retail store located at 2020 Beatties Ford Road in Charlotte. The store owner, M.D., and Gilliam were alone inside the store at the time. Soon after entering, Gilliam approached M.D. and struck him in the back of the head, causing M.D. to fall down. While holding a pistol in his hand, Gilliam ordered M.D. to hand over his wallet. The victim complied and Gilliam took $500 from the victim’s wallet along with the victim’s phone. Gilliam then threatened to kill M.D. if M.D. did not open the store’s register. The victim opened the register and Gilliam took approximately $2,800 in cash. After ordering the victim to stand in the corner, Gilliam fled the store on foot. Gilliam was later arrested by law enforcement in South Carolina.

In July 2020, Gilliam pleaded guilty to robbery of a business affecting interstate commerce, or Hobbs Act robbery. He is currently in 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 the FBI and CMPD.  Assistant U.S. Attorney William Bozin, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.   

 

CHARLOTTE, N.C. – A federal grand jury in Charlotte has indicted a Virginia man for allegedly orchestrating an investment scheme that defrauded victims of more than $740,000, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. 

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

According to allegations contained in the indictment, from 2009 to October 2021, Michael Mandel Baldwin, 52, of Alexandria, Virginia, was the Chief Executive Officer of the Miracle Mansion, LLC (Miracle Mansion). The indictment alleges that over the course of the scheme, Baldwin made numerous fraudulent representations to victim-investors about the purpose, legitimacy, and success of Miracle Mansion, and solicited investments from a Charlotte-area church and its members, and other individuals and entities located throughout the United States, including in Virginia, Arkansas, Florida, and Georgia.

As part of the fraudulent investment scheme, Baldwin allegedly created and distributed promotional materials to potential investors that described Miracle Mansion as “a one-of-a-kind entertainment complex that [would] reshape the face of family entertainment in the Washington Metropolitan region,” with a mission “to provide a high-quality performing arts experience that promotes family-focused inspiration, entertainment and enrichment anchored by a Biblical worldview.” Baldwin also held in-person and virtual meetings with potential investors, during which he falsely claimed the investors’ money would be used to develop Miracle Mansion, including to purchase the land on which Miracle Mansion would be located. As alleged in the indictment, Baldwin also falsely represented to potential investors that The Kennedy Center and high-level executives at Hobby Lobby and Chick-Fil-A had endorsed and supported Miracle Mansion. The indictment further alleges that Baldwin described to investors several investment opportunities, including “GroundSwell 73,” which was described as “73 acres = 7,300 people, investing $73 per month, for 73 months.”

The indictment also alleges that, contrary to Baldwin’s representations to investors, rather than using the victims’ money to further Miracle Mansion’s purpose, Baldwin spent hundreds of thousands of dollars on his personal lifestyle, including to pay for personal expenses, travel, and meals at restaurants, and to make credit card payments and cash withdrawals. He also allegedly used a portion of the victims’ money to pay others involved in Miracle Mansion, and to make Ponzi style payments to other investors.

Baldwin is charged with wire fraud, which carries a maximum prison term of 20 years and a $250,000 fine, and securities fraud, which carries a maximum prison term of 20 years and a $5 million fine.

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

The U.S. Secret Service led the investigation. Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

 

 

 

 

CHARLOTTE, N.C. – A federal jury in Charlotte has convicted Michael Moore, 39, a Liberian national residing in the Philadelphia area, for his involvement in an online romance scam that targeted older adults, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad Jr. presided over the two-day trial which ended late yesterday.

​Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, and Barry Chastain, Port Director of the U.S. Customs and Border Protection (CBP) Area in Charlotte join Acting U.S. Attorney Stetzer in making today’s announcement. 

According to court documents, trial evidence, and witness testimony, beginning in January 2016, Moore and others engaged in a fraudulent scheme to defraud unsuspecting victims, many of whom were in or near retirement, by perpetrating an online romance scam. Trial evidence established that Moore and his co-conspirators generally targeted victims through Facebook, senior dating websites, and other social media platforms, convincing them through online communications that they were romantically interested in them. The fraudsters, who often said they were overseas for work, would then start asking for money, often falsely telling the victims the money was for plane tickets or to otherwise facilitate their travel to visit the victim. After the victim initially sent money as requested, Moore and his fellow fraudsters would tell additional lies about additional fees or costs that purportedly has to be paid to facilitate the visit from the person who purported to be in love with the victim. Evidence at trial showed that Moore and his fellow fraudsters would continue to solicit money from victims till they had no more money left. 

Trial evidence showed that Moore served the fraud scheme as the “money man” or “bag man” purchasing one way tickets and flying around the country to meet unsuspecting victims and pick up cash from them in multiple cities. Moore was caught trying to fly out of Charlotte with $75,000 in cash, which he had taken from one of the victims. Evidence at trial also showed Moore taking pictures and making videos bragging with piles of cash taken from victims. 

The evidence also showed that victims were repeatedly directed to deposit money into accounts held in the names of third parties. In total, Moore and his co-conspirators stole over $1.5 million from at least 30 victims through this fraud scheme. 

The evidence at trial further established that Moore lied to CBP officers and ICE-HSI agents when he was questioned at Charlotte Douglas International Airport after being caught attempting to carry  $75,000 in cash through airport security. Instead of telling law enforcement the truth – that he had received the cash from a victim the previous day – he told them a story about receiving the money from a Liberian government official to buy used cars. Later, Moore made similar false statements and representations on a federal form in an attempt to have the $75,000 returned to him. 

The jury convicted Moore of wire fraud, which carries a maximum prison term of 20 years and a $250,000 fine, and two counts of making a false statement to an agency of the United States, which carries a maximum prison term of five years and a $250,000 fine.

In making today’s announcement, Acting U.S. Attorney Stetzer thanked CBP and HSI for handling the investigation.

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

* * *

The U.S. Attorney’s Office Elder Justice Initiative aims to combat elder financial exploitation 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. For more information please visit: https://www.justice.gov/usao-wdnc/elder-justice-initiative

Examples of financial scams targeting seniors are:

• Lottery phone scams – in which the callers convince seniors that a large fee or taxes must be paid before they can receive lottery winnings.
• Grandparent scams – which convince seniors that their grandchildren are in trouble and need money to make rent, repair a car, or even money for bail.
• Romance scams – which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose.
• IRS imposter scams – which defraud victims by posing as IRS agents and claiming that victims owe back taxes.
• Sham business opportunities – which convince victims to invest in lucrative business opportunities or investments.

 

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.
• Don’t send gift cards, checks, money orders, wire money, 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 contact the Justice Department’s Elder Fraud Hotline at 1-833-Fraud-11 (1-833-372-8311). 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. – Richard Allen Clark, 55, of Lenoir, N.C., was sentenced to 48 months in prison today for embezzling more than $1 million from his former employer, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, U.S. District Judge Kenneth D. Bell also ordered Clark to serve three years of supervised release, and to pay $980,000 as restitution to his victims and $194,750 to the IRS.

Mona Passmore, Acting Special Agent in Charge of the IRS, Criminal Investigation Division, Charlotte Field Office (IRS-CI), and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join Acting U.S. Attorney Stetzer in making today’s announcement.

According to filed court documents and statements made in court, from 2013 to 2019, Clark was employed as an office manager for two family-owned businesses in Lenoir, and was responsible for, among other things, handling the companies’ bookkeeping and financial records, making payments to vendors and the IRS, and reconciling the companies’ bank accounts. Clark used his position and his access to the companies’ financial records and bank accounts to embezzle more than $1 million from his employers. Court records show that Clark stole money from a company bank account the owner had directed Clark to close. Instead of closing the account, Clark used it to steal from his employer, by instructing customers to make payments to that account.

Clark also admitted that he laundered the funds he embezzled from his employer by withdrawing customer funds from the company’s bank account through multiple fraudulent checks payable to himself, which he deposited into personal bank accounts. Clark then used the stolen funds to pay for his personal lifestyle, including to make payments for his home mortgage, to make auto loan payments for an F-150 truck and other vehicles, to install a home theater system, and to pay for travelling and shopping expenses, among other things.

Clark also filed a fraudulent U.S. income tax return for tax year 2018 by deliberately failing to claim the additional income he stole from his employers. 

 

At today’s sentencing hearing, representatives of the victim company spoke in Court about the detrimental impact of Clark’s fraud on their company, and the personal and financial hardship they sustained as a result of the defendant’s criminal conduct.

On June 3, 2021, Clark pleaded guilty to mail fraud, money laundering, and making a false statement on his tax return. He will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, Acting U.S. Attorney Stetzer commended IRS-CI and USPIS for their investigation of the case and thanked the Caldwell County Sheriff’s office for their invaluable assistances.

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

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Frank Darrell Cromwell, 25, of Boone, N.C., to 25 years in prison for producing child pornography, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.  Cromwell was also ordered to pay special assessments in the amount of $55,100, to serve a lifetime of supervised release, and to register as a sex offender after he is released from prison.

Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Andy LeBeau of the Boone Police Department, join Acting U.S. Attorney Stetzer in making today’s announcement.

According to court records and today’s hearing, between December 2018 and February 2019, Cromwell used Snapchat to convince multiple minor victims that Cromwell was a female, and to communicate with the minors. During the relevant time period, Cromwell induced and sometimes coerced the minor victims to engage in sexually explicit conduct and to send explicit images and videos to Cromwell.

“Technology misused by predators like Cromwell can impact the safety and well-being of children everywhere,” said Acting U.S. Attorney Stetzer. “It is important – now more than ever – to have conversations with children about the dangers that lurk on the internet, and remind them that things, and people, online are not always what they seem. I want to thank our law enforcement partners for their investigation of this case, and all they do to help us protect children.”

“Cases like this should put predators on notice that they cannot use the internet to hide from justice, because we will use all of our resources to find you and hold you accountable,” said Special Agent In Charge Martinez. “HSI along with its partners will continue to combat this heinous crime, but we need everyone to be vigilant and monitor what our children do online as well as who they interact with.”

In making today’s announcement, Acting U.S. Attorney Stetzer commended HSI and the Boone Police Department for their investigation the case and thanked the North Carolina State Bureau of Investigation for their invaluable assistance.

Assistant U.S. Attorneys Cortney Randall and Stephanie Spaugh prosecuted the case.

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

                                                          

CHARLOTTE, N.C. – A federal jury has convicted Trevon Darnell Hopkins, 27, of Charlotte, of possession of a firearm by a felon, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad Jr. presided over the trial which ended yesterday.

Acting U.S. Attorney Stetzer 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 court documents, trial evidence, and witness testimony, on June 23, 2018, CMPD officers observed Hopkins driving a vehicle that had been reported as 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 onto oncoming traffic and on the sidewalk. Hopkins eventually lost control of the vehicle and crashed into a tree. 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. Also, at the time of his arrest, Hopkins was on post-release supervision with the State of North Carolina.

Hopkins is currently in federal custody. The charge of possession of a firearm by a convicted felon carries a maximum prison sentence of 10 years. A sentencing date for Hopkins has not been set.

In making today’s announcement Acting U.S. Attorney Stetzer thanked 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 are prosecuting the case.

CHARLOTTE, N.C. – Dr. James W. Heroman, 43, formerly of Charlotte, appeared before U.S. Magistrate Judge David S. Cayer on Monday, October 4, 2021, and pleaded guilty to receiving and delivering a misbranded medication, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.

Derrick L. Jackson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General for the region including North Carolina, and Justin C. Fielder, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), Miami Field Office, join Acting U.S. Attorney Stetzer in making today’s announcement.

Dr. Heroman is an ophthalmologist and the former owner of a now-closed ophthalmology clinic, Carolina Retina and Vitreous Consultants (CRVC). According to plea documents filed with the court, as early as September 2013, Dr. Heroman caused CRVC to order and receive an unapproved, foreign and cheaper drug which he used to treat patients with macular degeneration, instead of using Lucentis®, the medication approved by the Food and Drug Administration (FDA) for the treatment of the condition in the United States. As Dr. Heroman admitted in court yesterday, he purchased the foreign, unapproved medication because it cost less than the name brand Lucentis®. At the same time, Dr. Heroman caused CRVC to bill Medicare for the non-covered and non-reimbursable unapproved medication as if it were FDA-approved and kept the difference in price as profit.

In addition to pleading guilty to the criminal charge, Dr. Heroman and CRVC have also agreed to pay $450,000 to resolve the United States’ allegations that they violated the False Claims Act, when they knowingly submitted or caused to be submitted false claims for payment to Medicare related to the administration of unapproved medications. The claims resolved by the civil settlement are allegations only and there has been no determination of liability.

In making today’s announcement, Acting U.S. Attorney Stetzer said, “Dr. Heroman sought to increase his profit margins by using an unauthorized medication, potentially putting the health of his patients at risk. Together with our law enforcement counterparts, we will investigate and prosecute physicians who choose to fill up their pockets at the expense of their patients.”

“Physicians who provide non-FDA approved drugs to their patients unnecessarily place those in their care at risk,” said Special Agent in Charge Jackson. “Working with our law enforcement partners, our oversight agency will investigate such fraud schemes that threaten the health of patients and the integrity of federal health care programs.”

“U.S. patients rely on FDA oversight to ensure that the drugs and medical devices they use are safe and effective. Rogue health care professionals who obtain foreign unapproved medical products, and dispense and administer those products to their patients, put the health of those patients at significant risk,” said Special Agent in Charge Fielder. “We will continue to pursue and bring to justice those who choose to put the public’s health at such risk.”

A sentencing date for Dr. Heroman has not been set. The charge of receiving and delivering a misbranded medication carries a maximum penalty of a year in prison and a $1,000 fine.

In making today’s announcement, Acting U.S. Attorney Stetzer commended HHS-OIG and and FDA-OCI for their investigation of the case.

Assistant U.S. Attorney Michael Savage is prosecuting the criminal case. Assistant U.S. Attorney Katherine Armstrong is in charge of the civil proceedings.