Western District of North Carolina

CHARLOTTE, N.C. – With this year’s tax filing deadline approaching quickly, Acting U.S. Attorney William T. Stetzer urges taxpayers to beware of fraudulent return preparers and warns dishonest preparers that violating federal tax laws can lead to criminal actions and stiff monetary penalties.

The IRS’s Dirty Dozen Tax Scams represents the worst of the worst tax schemes that taxpayers may encounter and typically peak during filing season. Unscrupulous tax preparers are once again listed as one of the most common tax fraud schemes.

“Taxpayers rely on tax return preparers for their expertise and assistance with filing honest and accurate tax returns. When crooked preparers violate that trust, federal prosecutors will be there to hold them accountable,” said Acting U.S. Attorney Stetzer.

To highlight its message of deterrence to those who engage in the preparation of fraudulent tax returns, commit tax fraud and potentially expose their clients to serious consequences, the U.S. Attorney’s Office highlights the following criminal actions against tax preparers who have violated federal law:

On March 25, 2021, Aminta Smith, of Charlotte, was sentenced to 30 months in prison and one year of supervised release and ordered to pay $171,017 as restitution to the IRS.  According to the sentencing hearing, court documents and evidence presented at trial, Smith owned and operated a Charlotte-based tax preparation business, Touch by Angels Tax Services, also known as Touch by Angels Accounting Services and Smith Tax & Insurance Group, LLC. Between 2011 to 2016, Smith prepared fraudulent income tax returns for clients that claimed false education credits, false W-2 wages, and false Schedule C businesses to inflate the refunds paid by the IRS. In addition to filing fraudulent income tax returns for her clients, Smith falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2011 to 2015, and in some years failing to disclose that she was in engaged in the operation of a tax preparation business. In total, Smith caused more than $1 million in tax loss to the IRS.

On August 28, 2020, Elizabeth Pigatt, of Charlotte, was sentenced to four months in prison for filing false tax returns. According to court documents Pigatt owned and operated Pigatt Taxes Quick, a return preparation business in Charlotte.  Beginning in at least 2012 and continuing through 2016, the defendant prepared income tax returns for clients that claimed false education credits, false Premium Tax Credits, and false Schedule C businesses to inflate refunds paid by the IRS. In addition to filing fraudulent income tax returns for her clients, Pigatt falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2013, 2014, and 2015, and in her 2012 through 2015 tax returns also falsely claimed education credits and the incorrect filing status. The tax loss associated with the offense was more than $250,000 but less than $550,000.

In July 2020, Joseph Octave, Vonyeda Carson, Wendia Courtois, Melissa Greene, Natisha Holloman, Kimberly Joline, and Whitney Vargas-Medrano, all of Charlotte, were charged with conspiring to defraud the United States, aiding and assisting in the preparation of false tax returns for their clients, and in some cases filing false personal tax returns. According to court documents, Octave owned and operated Kapital Financial Services, a tax return preparation business with two offices located in Charlotte. Since 2014, Octave and his employees, including Carson, Courtois, Vargas-Medrano, Greene, Holloman, and Joline conspired to defraud the United States by preparing and filing tax returns on behalf of clients that claimed fabricated and fraudulent items, including Schedule A deductions, Schedule C business income and losses, American Opportunity credits, education credits, and earned income tax credits. Octave, Greene, Joline, and Vargas-Medrano trained Kapital Financial Services employees to falsify federal income tax returns. The training material provided to employees included scripts and cheat sheets. Furthermore, Carson and Courtois filed false personal tax returns. All seven defendants have pleaded guilty and are awaiting sentencing.

The U.S. Attorney’s Office reminds taxpayers to visit IRS’s website for tips on choosing a preparer, and to obtain information on how to avoid unethical tax preparers. The U.S. Attorney’s Office also urges taxpayers to protect themselves against a wide range of other tax schemes. In addition to tax preparer fraud, taxpayers are urged look out for and to avoid the following common schemes:

• Phishing
• Fake Charities
• Threatening Impersonator Phone Calls
• Social Media Scams
• EIP or Refund Theft
• Senior Fraud
• Scams Targeting Non-English Speakers
• Offer in Compromise Mills
• Fake Payments with Repayment Demands
• Payroll and HR Scams
• Ransomware

IRS Criminal Investigation works closely with the Department of Justice to shut down scams and to prosecute the criminals behind them. Education is the best way to avoid these common schemes.

To learn more about the Dirty Dozen scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at www.irs.gov. Suspected tax fraud can be reported to the IRS using Form 3949-A found on the IRS.gov website. If you have been financially impacted by a tax return preparer’s misconduct or improper tax preparation practices you can file a complaint here.

ASHEVILLE, N.C. – On Tuesday, May 11, 2021, U.S. District Judge Max O. Cogburn Jr. sentenced Lawrence Keith Limon, 52, of Murphy, N.C. to 72 months in prison for distribution of child pornography, announced William T. Stetzer, U.S. Attorney for the Western District of North Carolina. Limon was also ordered 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 Charlotte, and Sheriff Derrick Palmer of the Cherokee County Sheriff’s Office join Acting U.S. Attorney Stetzer in making today’s announcement.

According to filed documents and statements made in court, from June 2017 to January 2019, Limon engaged in the online distribution of images depicting the sexual abuse of children. Court records show that law enforcement became aware that an individual, later identified as Limon, was distributing multiple child pornography using various internet platforms, including the social media blog platform Tumblr.com and a Gmail email account. On March 12, 2019, law enforcement executed a search warrant at Limon’s resident, seizing three electronic devices including a tablet, a cellphone and a laptop. A forensic analysis of the seized devices revealed that it contained more than 600 images of child pornography.

On November 30, 2020, Limon pleaded guilty to distribution of child pornography. He is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. 

In making today’s announcement, Acting U.S. Attorney Stetzer thanked HSI and the Cherokee County Sheriff’s Office for their investigation of this case.

Special Assistant U.S. Attorney (SAUSA) Alexis Solheim, with the U.S. Attorney’s Office in Asheville, prosecuted the case. Ms. Solheim is a state prosecutor with the office of the 43rd Prosecutorial District and was assigned by District Attorney Ashley Welch to serve as a SAUSA with the U.S. Attorney’s Office in Asheville. Ms. Solheim is duly sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 43rd Prosecutorial District and the United States Attorney’s Office. 

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

CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad handed down a 20-year prison term today to Joseph Craig Rabon, 37, of Monroe, N.C., for possession and receipt of child pornography, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Rabon will also have to serve 30 years under supervised release and register as a sex offender after his term of incarceration.

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

According to court filings, plea documents and statements made in court at today’s sentencing hearing, in August 2016, the FBI became aware that Rabon was using the internet to download child pornography. Court records show that Rabon used peer to peer software to access images and videos depicting the sexual abuse of children, including images portraying sadistic conduct and children under the age of 12. A forensic analysis of Rabon’s seized electronic devices revealed that he possessed more than 30 images and videos of child pornography.

Rabon was indicted by a federal grand jury in November 2018 and was subsequently released on bond. Court records show that, while on pretrial release, Rabon attempted to access and view pornography on the internet multiple times in violation of the Court’s terms and conditions of release. Court records also show that, after Rabon was taken into custody following his guilty plea, a minor victim came forward to report sexual abuse by Rabon over a five year period, which resulted in Rabon’s enhanced term of imprisonment today.

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

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

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

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

CHARLOTTE, N.C. – Reggie Pettus, 25, of Charlotte, was sentenced today to nine years in prison and three years of supervised release for possession of a firearm by a felon, announced William T. Stetzer, Acting 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 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, in the early morning hours on September 18, 2019, Pettus approached a victim, identified in court documents as “MDS,” in front of the Epicenter in Charlotte, and took the victim’s gold chain from around his neck. At the time of the robbery, Pettus was in possession of a KelTec .380 caliber handgun. Law enforcement later determined the firearm had been stolen in Broward County, Florida. As described in court documents, MDS chased Pettus in an attempt to retrieve his necklace. Following a brief fight with the victim, Pettus brandished the stolen firearm and ran away.  According to court documents, sometime soon thereafter, the victim saw Pettus on the street and shouted at him. Pettus fired three shots at the victim using the stolen firearm and then ran into the Epicenter garage. CMPD officers responding to the incident arrested Pettus after the victim saw Pettus again walking near the Epicenter and identified him as the person who had stolen his necklace.

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

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

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

 CHARLOTTE, N.C. – In honor of National Police Week, Acting U.S. Attorney William T. Stetzer recognizes the service and sacrifice of federal, state, local, and Tribal law enfrocement. This year, the week is observed Sunday, May 9 through Saturday, May 15, 2021.

“This week is a time to honor our law enforcement officers who have made the ultimate sacrifice in service to our nation,” said Attorney General Garland. “I am constantly inspired by the extraordinary courage and dedication with which members of law enforcement act each day, putting their lives on the line to make our communities safer. To members of law enforcement and your families: we know that not a single day, nor a single week, is enough to recognize your service and sacrifice. On behalf of the entire Department of Justice, you have our unwavering support and eternal gratitude.”

“Throughout National Police Week and on Peace Officers Memorial Day, we join our federal, state, county, local and Tribal partners in recognizing the service and sacrifice of the law enforcement community, particularly the law enforcement officers who lost their lives in the line of duty in 2020. We are forever grateful to the fallen officers and their families for their service and sacrifice,” said Acting U.S. Attorney Stetzer.

In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices.  Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.  

 Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe. This year the COVID-19 pandemic has highlighted law enforcement officers’ courage and unwavering devotion to the communities that they have sworn to serve.

During the Roll Call of Heroes, a ceremony coordinated by the Fraternal Order of Police (FOP), more than 300 officers will be honored.  Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), of the law enforcement officers who died nationwide in the line of duty in 2020, nearly 60 percent succumbed to COVID-19. In the Western District of North Carolina, two officers died in the line of duty.

Additionally, according to statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 46 law enforcement officers died as a result of felonious acts and 47 died in accidents in 2020.  LEOKA statistics can be found on FBI’s Crime Data Explorer website.  

The names of the 394 fallen officers who have been added in 2020 to the wall at the National Law Enforcement Officer Memorial will be read on Thursday, May 13, 2021, during a Virtual Candlelight Vigil, which will be livestreamed to the public at 8:00 pm EDT. Among those honored will be Deputy Ryan Phillip Hendrix of the Henderson County Sheriff’s Office, and Officer Tyler Avery Herndon of the Mount Holly Police Department, who were both killed in the line of duty during 2020.

Those who wish to view the Virtual Candlelight Vigil on May 13, 2021, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/user/TheNLEOMF. The FOP’s Roll Call of Heroes can be viewed at www.fop.net. To view the schedule of virtual Police Week events in May, please view NLEOMF’s Police Week Flyer.   

The Police Week in-person public events, originally scheduled for May, have been rescheduled due to ongoing COVID-19 concerns to October 13-17, 2021. An in-person Candlelight Vigil event is scheduled for October 14, 2021.

To learn more about National Police Week in-person events scheduled for October, please visit www.policeweek.org.

CHARLOTTE, N.C. – Today, U.S. District Judge Max O. Cogburn Jr sentenced James Tiwauna Murray, 24, of Charlotte, to 137 months in prison and three years of supervised release for the 2019 attempted armed robbery of a 7-Eleven convenience store, announced William T. Stetzer, Acting 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 join Acting U.S. Attorney Stetzer in making today’s announcement.

According to filed court documents and statements made in court, on September 9, 2019, at approximately 3:04 a.m., Murray, while armed with a handgun, entered the 7-Eleven convenience store, located at 5343 Monroe Road in Charlotte. Upon entering the store, Murray jumped over the counter and ran into the back office, where he encountered a store employee. Court records show that Murray told the store employee “this is a robbery” and shot the employee in the chest. Murray then ran out of the back office while the store employee pursued Murray. Murray shot at the store employee again and fled the scene without taking any of the store’s cash. The store employee reported the robbery to CMPD and Murray was arrested in the vicinity shortly thereafter.

On July 2, 2020, Murray pleaded guilty to attempted Hobbs Act robbery, which is the attempted robbery of a business engaged in interstate commerce. 

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

In announcing today’s sentence, Acting U.S. Attorney Stetzer thanked the FBI and CMPD for their investigation of the case.

Assistant U.S. Attorney Christopher Hess handled the prosecution.  

CHARLOTTE, N.C. – Mario Edward Roane, 56, of Charlotte, was sentenced today to 151 months in prison on federal bank robbery charges, plus an additional five months in prison for violating his federal supervised release by committing the bank robberies, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. also sentenced Roane to three years of supervised release and ordered him to pay $6,350 in restitution to the banks and a $200 special assessment to the court.

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

According to filed court documents and today’s sentencing hearing, on March 18, 2020, Roane robbed the First Citizens Bank branch located at 128 South Tryon Street in Charlotte.  Upon entering the bank, Roane approached a bank teller and told her “this is a robbery…I have a gun.” The teller handed Roane $1,700 from the cash drawer and Roane fled the scene. Filed court documents show that five days later, on March 23, 2020, Roane robbed the Wells Fargo Bank branch located at 301 South Tryon Street in Charlotte. Roane entered the bank and waited in line for a teller. Once he arrived at the teller’s window, he demanded money and told the teller “Give me all your money, or I’ll blow your head off.” The teller complied and Roane left the bank with $4,650 in cash. According to court records, law enforcement identified Roane based on surveillance video from the banks. He was arrested on March 31, 2020. Court records show Roane has twice previously been convicted of federal bank robbery charges in the Western District of North Carolina and served two separate federal prison terms for those convictions.  When Roane committed the two robberies in March 2020, he was on federal supervised release for his most recent federal bank robbery conviction.

On August 17, 2020, Roane pleaded guilty to two counts of bank robbery. 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. 

The FBI's Violent Crimes Task Force and CMPD investigated the case. The prosecution was handled by Assistant U.S. Attorney Taylor Stout of the U.S. Attorney’s Office in Charlotte.

CHARLOTTE, N.C. – Oscar Hernandez Maldonado, 48, a Honduran national residing in Charlotte, was sentenced today to 30 years in prison followed by a lifetime of supervised release for producing child pornography, 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 Maldonado to register as a sex offender after his term of incarceration.

Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.

Maldonado was charged via a criminal bill of information with inducing, enticing and coercing a minor to engage in sexually explicit conduct for the purpose of producing images of the sexual abuse. According to today’s sentencing hearing and documents filed with the Court, beginning in or about 2008, Maldonado sexually abused five minor victims, four females and one male, at various times and on multiple occasions over an eight-year period. A forensic analysis by HSI of Maldonado’s seized electronic devices revealed that Maldonado produced images depicting the sexual abuse of the minors and attempted to erase those images. In December 2019, Maldonado pleaded guilty to production of child pornography.

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

In making today’s announcement, Acting U.S. Attorney Stetzer thanked HSI for their outstanding investigation of the case and commended CMPD for their invaluable assistance. 

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

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

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. – Acting U.S. Attorney William T. Stetzer announced that a Charlotte woman and one of her two co-conspirators were sentenced to prison today for their involvement in a $300,000 embezzlement scheme perpetrated on an elderly, dementia-afflicted victim.

Acting U.S. Attorney Stetzer is joined in making today’s announcement by Robert R. Wells, Special Agent in Charge for the FBI in North Carolina, Tommy D. Coke, Inspector in Charge of the of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte, and Chief Joseph Hatley of the Mint Hill Police Department.

U.S. District Judge Max O. Cogburn Jr. sentenced Donna Graves, 58, to 97 months in prison and two years of supervised release. On October 2, 2020, a federal jury convicted Graves of conspiracy to commit wire fraud and money laundering conspiracy. Grave’s co-conspirator, Gerald Maxwell Harrison, 54, of Mint Hill, N.C., was ordered to serve three years in prison, followed by three years of supervised release. Harrison pleaded guilty in May 2020, to wire fraud conspiracy, interstate transportation of stolen property, and money laundering conspiracy. In addition to the prison terms imposed, Judge Cogburn also ordered Graves and Harrison to pay $298,407.85 as restitution, jointly and severally.

A third co-conspirator, Elizabeth Robin Williams, previously pleaded guilty to wire fraud conspiracy, interstate transportation of stolen property, and money laundering conspiracy and is currently awaiting sentencing.

According to filed court documents, evidence presented at Graves’ trial and witness testimony, including testimony provided by Harrison, from January 2015 through September 2019, Graves, who was the ringleader of the criminal conspiracy, conspired with Williams and Harrison to engage in a scheme to defraud a victim identified in court documents as “K.T.” The victim was an elderly widow who lived alone and suffered from dementia and other physical and mental challenges. During the relevant time period, Graves and her co-conspirators exploited K.T.’s vulnerabilities and defrauded the victim through a web of forged documents, lies, and deceptions.

According to evidence presented at Graves’ trial, beginning in 2014, Graves and Williams provided housekeeping services for the victim through a business owned and operated by Graves. Over the course of the scheme, the co-conspirators isolated the victim from her friends and family, induced the victim to give them power and control over her personal affairs, and fabricated a power of attorney purporting to give Graves and Williams control over the victim’s financial affairs. Once they gained access and control, Graves, Williams, and Harrison moved the victim out of her residence in Indian Land, South Carolina, first to an apartment in Charlotte, and later to a rental home in Mint Hill, refusing to let the victim’s friends and family know where she was living. 

According to court records and trial testimony, Graves, Williams, and Harrison engaged in numerous illegal and unauthorized financial transactions that substantially depleted the victim’s money and property. Specifically, the co-conspirators emptied the victim’s bank accounts and used the money to pay for personal expenses, and “maxed out” at least one credit card in the victim’s name. The co-conspirators also fraudulently transferred or attempted to transfer the victim’s Indian Land residence to themselves by creating a quit claim deed purporting to gift the residence to Harrison; they then attempted to sell the residence and intended to split the proceeds amongst each other. They also pawned the victim’s jewelry, and they stole the victim’s federal benefits. Additionally, Williams unlawfully used the victim’s money to set up other businesses in her name, including a business selling handbags online and a business selling weight loss-related services. As a result of the fraudulent scheme, the co-conspirators defrauded the victim of approximately $300,000. 

According to court documents and information presented at today’s sentencing hearing, over the course of the scheme, Graves and her co-conspirators failed to provide the victim with proper medical care, which greatly diminished the victim’s health. Furthermore, once the victim’s money was depleted, the co-conspirators abandoned the victim, who was later moved to a nursing home in New York, where she passed away in large part due to the mental and physical deterioration she had suffered in the hands of Graves and her co-conspirators.

In announcing Graves’s sentence, Judge Cogburn said the defendants knew that the victim was vulnerable and that this was a shameful manipulation of a person. Judge Cogburn also said the defendant’s made “the last part of her (the victim’s) life the worst part of her life.”

Graves will be ordered to report to the federal Bureau of Prisons to begin serving her sentence upon designation of a federal facility. Harrison is currently in custody. A sentencing date for Williams has not been set. Williams faces a maximum penalty of 20 years in prison and a $250,000 fine for the wire fraud conspiracy charge carries. The statutory maximum penalty for the money laundering conspiracy charge is 20 years in prison and a $500,000 fine, and the interstate transportation of stolen property charge carries a maximum prison term of 10 years and a $250,000 fine.

In making today’s announcement, Acting U.S. Attorney Stetzer commended the Mint Hill Police Department, the FBI, and USPIS for their investigation of this case. 

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

June 15TH Is World Elder Abuse Awareness Day

June 15, 2021, is World Elder Abuse Awareness Day (WEAAD). First launched in 2006 by the International Network for the Prevention of Elder Abuse and the World Health Organization at the United Nations, the purpose of WEAAD is to raise awareness about abuse and neglect toward the elderly and to prevent elder exploitation.

 According to the National Council on Aging, elder abuse is a silent problem that robs seniors of their dignity, security, and – in some cases – it costs them their lives. “Up to five million older Americans are abused every year, and the annual loss by victims of financial abuse is estimated to be at least $36.5 billion.”

Combating elder abuse and financial fraud targeted at older adults is a key priority of the Department of Justice and the U.S. Attorney’s Office for the Western District of North Carolina. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10% of older Americans every year.

Together with our law enforcement partners, the Justice Department and the U.S. Attorney’s Office are committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, victim services and public awareness. Visit the Justice Department’s Elder Justice Initiative to learn more about available resources, including how to report elder abuse and financial exploitation.

CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced that U.S. District Judge Max O. Cogburn Jr. sentenced Benjamin Swain, 47, of Charlotte, late yesterday, to 25 years in prison, on charges of sexual exploitation of a minor.

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

According to court filings, plea documents and statements made in court, Swain was a tennis coach in the greater Charlotte area. As Swain previously admitted in court, beginning in at least 2016, and on at least two different occasions, Swain secretly recorded three minors while they were undressing and showering. On December 9, 2019, Swain pleaded guilty to sexual exploitation of a minor. Swain was previously sentenced to 12 years in prison, after pleading guilty to Child Molestation and Enticing a Child for Indecent Purposes in an unrelated case prosecuted by the state of Georgia.

In announcing Swain’s sentence, Judge Cogburn said that the sentence should deter other coaches and people who serve in similar positions from committing similar crimes.

Swain is currently in federal custody. He will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility. Swain, who is a British citizen, will also be subject to deportation proceedings upon completion of his federal sentence. If Swain is not deported, or later returns to the United States, he was ordered by Judge Cogburn to serve a lifetime of supervised release and to register as a sex offender.

In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI, CMPD, and the Bibb County Sheriff’s Office in Georgia for their investigation of the case. 

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

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

CHARLOTTE, N.C. – Eight members of a drug trafficking ring operating in and around Union County were handed down sentences ranging from 30 to 300 months in prison today, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. 

According to court filings, plea documents, and statements made in court, the eight defendants are members of the Garcia Family drug trafficking organization (DTO). Over the course of the investigation, which began in April 2019, the defendants operated as a drug conspiracy and trafficked narcotics, including heroin, cocaine, and methamphetamine, in Union County and surrounding areas and involving the seizure of more than 16 kilograms of methamphetamine. The eight defendants were sentenced as follows:

• Elio Garcia Godinez, 32, of Monroe, N.C. was sentenced to 300 months in prison and five years of supervised release.
• Ivan Jardon Trujillo, 48, of Monroe, N.C. was sentenced to 156 months in prison and five years of supervised release.
• Ivan Trujillo Garcia, 23, of Monroe, N.C. was sentenced to 87 months in prison and four years of supervised release.
• Eleonel Castrejon Garcia, 24, of Monroe, N.C. was sentenced to 120 months in prison and five years of supervised release.
• Estefani Garcia Sandoval, 26, of Monroe, N.C. was sentenced to 30 months in prison and two years of supervised release.
• Luis David Bravo, 47, of Monroe, N.C. was sentenced to 60 months in prison and two years of supervised release.
• Miguel Benitez Castrejon, 40, of Monroe, N.C. was sentenced to 97 months in prison and two years of supervised release.
• Matilde Isaias Cruz Portillo, 36, of Atlanta, Georgia, was sentenced to 84 months in prison and two years of supervised release.
   

In making today’s announcement, Acting U.S. Attorney Stetzer praised the outstanding efforts of the FBI, ATF, DEA, the Monroe Police Department and the Union County Sheriff’s Office for their investigation which led to today’s outcome.  Acting U.S. Attorney Stetzer also noted the assistance provided by ICE – Enforcement & Removal Operations and the Wadesboro Police Department.  

Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte prosecuted the case.

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

CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn Jr. sentenced today Juan Jose Benton, 46, of Charlotte, N.C. to 108 months in prison to be followed by a term of supervised release for possession of a firearm in furtherance of a drug trafficking crime, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.

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

According to court documents and today’s sentencing hearing, from at least 2013 to 2018, Benton was the leader of a drug trafficking ring operating in Mecklenburg County. Over the course drug conspiracy, Benton regularly purchased multiple kilograms of cocaine, which he distributed in bulk quantities to other drug traffickers in the greater Charlotte area. Court records show that on March 13, 2018, law enforcement executed a search warrant at Benton’s residence in Waxhaw, N.C., where they seized approximately $2 million in cash from the defendant’s basement. Elsewhere in the residence, law enforcement recovered two firearms and more cocaine. On the same date, law enforcement conducted a traffic stop of the vehicle Benton was driving, from which they recovered more than $76,900 in cash.  Also on that date, a second search warrant was executed at a storage unit rented by the defendant at a facility in Charlotte, in which they found more than four kilograms of cocaine, over eight pounds of marijuana, and more than $315,000 in drug proceeds.  

In making today’s announcement, Acting U.S. Attorney Stetzer thanked the DEA, and Charlotte-Mecklenburg Police Department for handling the investigation.

Assistant U.S. Attorneys William Bozin and Lambert Guinn, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

ASHEVILLE, N.C. – Today, Chief U.S. District Judge Martin Reidinger sentenced Jeffrey Allen Buley, 58, of Hendersonville, N.C., to 22 years in prison for the sexual exploitation of a child, announced Acting U.S. Attorney William T. Stetzer. Judge Reidinger also ordered Buley to serve a lifetime of supervised release, to register as a sex offender after he is released from prison, and to pay $7,602.23 as restitution to his victim.

Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, and Chief C. Blair Myhand of the Hendersonville Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.

According to court documents and today’s sentencing hearing, law enforcement learned that Buley was using the Discord messaging app to communicate with a minor male. Court records show that the communications were sexual in nature, and, on at least one occasion, Buley instructed the minor to transmit live video of himself engaging in sexually explicit conduct. On July 30, 2019, HSI agents executed a search warrant at Buley’s residence, seizing Buley’s cell phone and other electronic devices. A forensic analysis of the devices revealed that Buley used the internet to distribute and receive child pornography and to engage in sexually explicit online chats concerning minors. On June 22, 2020, Buley pleaded guilty to sexual exploitation of a child.

Buley is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons. All federal sentences are served without the possibility of parole.

In making todays’ announcement, Acting U.S. Attorney Stetzer thanked HSI and the Hendersonville Police Department for their investigation of the case.

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

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

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.

STATESVILLE, N.C. – A federal jury sitting in Statesville has convicted a former Wells Fargo Information Technology (IT) employee of child pornography charges, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. The jury found Michael Scott Hoover, 50, of Wilkesboro, N.C., guilty of two counts of production and one count of possession of child pornography. U.S. District Judge Kenneth D. Bell 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, Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), and Sheriff Chris Shew of the Wilkes County Sheriff’s Office join Acting U.S. Attorney Stetzer in making today’s announcement.  

According to filed court documents, evidence presented at trial and witness testimony, between June 2018 and August 2019, Hoover produced child pornography on two different occasions by using two minor victims to engage in sexually explicit conduct, which Hoover recorded on his work cell phone. According to witness testimony, the child pornography was found on Hoover’s work cell phone during an internal investigation by his employer at the time, Wells Fargo. Trial evidence established that videos and images recovered from Hoover’s work cell phone depicted minor males as young as 12 years old engaging in sexually explicit conduct.  

Following the guilty verdict, Hoover was remanded into federal custody. A sentencing date has not been set. The possession of child pornography charge carries a maximum prison term of 10 years and a $250,000 fine. The charge of production of child pornography carries a mandatory minimum sentence of 15 years and a maximum of 30 years in prison per count and a $250,000 fine.

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

The prosecution for the government was handled by Assistant U.S. Attorney Cortney Randall, of the U.S. Attorney’s Office in Charlotte, and Special Assistant U.S. Attorney (SAUSA) Stephanie Spaugh. Ms. Spaugh is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Ms. Spaugh is duly sworn in both state and federal courts.  The SAUSA position is a reflection of the partnership between the office of the 26th Prosecutorial District and the United States Attorney’s Office. 

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

CHARLOTTE, N.C. –  A federal grand jury in Charlotte has indicted a North Carolina man for fraudulently obtaining more than $1.5 million in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Paycheck Protection Program (PPP), announced William T. Stetzer, Acting 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 Mona Passmore, Acting Special Agent in Charge of the of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, join Acting U.S. Attorney Stetzer in making today’s announcement.

According to allegations in the federal indictment, Maurice Kamgaing, 41, of Archdale, N.C., and a former Charlotte resident, fraudulently obtained more than $1.5 million in COVID-relief funds, by submitting fraudulent PPP loan applications to a federally insured financial institution on behalf of two businesses. The indictment alleges that the two PPP loan applications contained false and misleading information and fraudulent supporting documentation about the two businesses, including fake federal tax filings and payroll reports.

As alleged in the indictment, on April 7, 2020, Kamgaing filed a fraudulent application for a PPP loan for Apiagne, Inc. (Apiagne). The Apiagne PPP application allegedly included false information about the company’s purported payroll, and fraudulent documentation about its monthly payroll disbursements. For example, according to the indictment, Apiagne’s PPP loan application falsely represented that the company had an average monthly payroll of $260,000 and needed the loan to support its ongoing operation and its 46 employees. 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.

According to allegations in the indictment, on April 27, 2020, Kamgaing filed another fraudulent PPP loan application on behalf of AKC Solutions, which falsely represented that the company had 23 employees, and had an average payroll of $260,000. As a result of the fraudulent representations, a PPP loan for $650,000 was disbursed by a financial institution on May 5, 2020, and within days of receiving the loan Kamgaing allegedly used the proceeds for improper purposes and personal expenses.

Kamgaing is charged with wire fraud in relation to a disaster benefit which carries a maximum prison sentence of 30 years in prison; two counts of making false statements to a bank which carry a maximum penalty of 30 years in prison per count; and two counts of engaging in monetary transactions in criminally derived property, which carry a maximum prison term of 10 years per count.

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

In making today’s announcement, Acting U.S. Attorney Stetzer 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, is prosecuting the case.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

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.

ASHEVILLE, N.C. – A Cleveland County man has been sentenced to 135 months in prison today for receipt of child pornography, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Quinlan Drake Scism, Jr., 21, of Kings Mountain, N.C. was also ordered to serve a lifetime under court supervision and to register as a sex offender after he is released from prison, and to pay $35,000 in restitution to child pornography victims and a $5,000 special assessment.

Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Sheriff Alan Norman of the Cleveland County Sheriff’s Office join Acting U.S. Attorney Stetzer in making today’s announcement.

According to filed court documents and today’s sentencing hearing, the FBI became aware that an individual, later identified as Scism, was using a file sharing program on the dark web to receive child pornography. On September 23, 2019, the FBI executed a search warrant at Scism’s residence, seizing a thumb drive and a computer. The following day, while he was being interviewed at the Cleveland County Sheriff’s Office, Scism acknowledged that he viewed and downloaded child pornography from the internet and admitted to attempting to conceal his online activity on his cell phone when he learned about the FBI’s investigation. Scism also admitted that, as a teenager, he sexually abused a minor female. According to court records, a forensic examination of Scism’s seized devices revealed that he possessed 959 images and 48 videos of child pornography, some of which depicted sadistic and masochistic acts against prepubescent children.

During the time law enforcement were conducting the child pornography investigation into Scism, the Cleveland County Sheriff’s Office was contacted by park rangers with Crowders Mountain State Park concerning unusual activity and behavior exhibited by Scism while he was at the park. Court records show that, on at least two occasions, Scism was observed hiding in or leaving the women’s restrooms at the park. Due to his behavior, Crowders Mountain State Park sent a letter to Scism prohibiting him from entering the park.

On September 11, 2020, Scism pleaded guilty to receipt of child pornography. He is currently in federal custody and he will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. 

In making today’s announcement, Acting U.S. Attorney Stetzer commended the FBI and the Cleveland County Sheriff’s Office for their investigation of this case.

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

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

CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer joins the Department of Justice and communities nationwide in observing National Crime Victims’ Rights Week and

celebrating victims’ rights, protections and services throughout the week. This year’s observance takes place April 18-24 and features the theme, “Support Victims. Build Trust. Engage Communities.”

The Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs, leads communities throughout the country in their annual observances of NCVRW by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. OVC supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond     forfeitures.

“National Crime Victims’ Rights Week is a time to honor and remember the millions of Americans who have suffered the shock and trauma of criminal victimization. We stand by these brave survivors and their families,” said Acting U.S. Attorney Stetzer. “This week, we also recognize and commend the thousands of victim advocates who serve crime victims with dedication and work tirelessly to advance victims’ rights, and support survivors with skill and compassion.”

The United States Attorney’s Office will commemorate the advancement of victims’ rights and highlight issues surrounding victimization by holding a Virtual Ceremony on Tuesday, April 20, 2021 at 11:00 am. This program is co-hosted by the U.S. Attorney’s Offices for the Eastern and Middle Districts of North Carolina, the Victim Services Interagency Council of North Carolina, the North Carolina Department of Justice, and the Durham and Raleigh Police Departments. The keynote speaker is Ms. Deanna Walters, a survivor of intimate partner violence whose abuser was prosecuted by this office. Ms. Walters’ story was also featured on the 2014 award winning documentary titled “Private Violence.” Those interested in joining the event can register using this link:  https://usao.webex.com/usao/onstage/g.php?MTID=e0bb75a52a534a276abd6c3647b5a5d67.

For additional information about this year’s NCVRW and additional ideas on how to support victims of crime, visit OVC’s website at https://www.ovc.ojp.gov/.

CHARLOTTE, N.C. – U.S. District Court Judge Robert J. Conrad entered a Temporary Restraining Order (TRO) today against three Florida residents and three companies, to stop them from further operation of a predatory mass mailing scheme and from continuing to violate the criminal mail fraud statute. 

According to the civil complaint filed on April 5, 2021, Keivy Chavez a/k/a Kamilo Correa, Jhon F. Palacio a/k/a Richard Diamond, Sr., and John Doe a/k/a Tom Jowarski, through several fictitious business entities including KC Promotions a/k/a Miracle Profits, TJ Ads and CS Enterprises, allegedly engaged in an ongoing chain letter mass mailing fraud scheme that has targeted thousands of victims across the United States, especially the elderly. The complaint also alleges that the defendants’ efforts have resulted in significant financial harm to their victims.

According to the complaint, the defendants allegedly made material misrepresentations and fraudulent statements through deceptive mass mailings in the form of chain letters and Internet advertisements, to induce victims to enroll in one or more of their fictitious “money-making” programs, including the “Cash and Gold Tycoon Program” and the “MAJOR BUX! HUGE BUZZ!! Money Making Program.” The complaint states that the defendants induced the victims by promising exponential profits in the form of cash, commission payments, gold coins and silver bars, among other things. The complaint also states that many victims relied on the defendants’ fraudulent misrepresentations and paid over $1,000 each to enroll in the fraudulent programs, only to receive nothing in return. According to the complaint, since February 2021, the defendants have sent thousands of unlawful mass mailings, and during the same time frame the United States Postal Inspection Service (USPIS) has collected over 30 mailings, including enrollment applications and payments, addressed to KC Promotions, from victims residing in 18 states, including in North Carolina.

According to the filed complaint, USPIS has issued a notice alerting the public about these types of fraudulent schemes, warning consumers they could be commiting a federal crime.

The TRO entered today by the U.S. District Court bars the defendants and their companies from continuing to engage in such predatory schemes to prevent further harm to potential victims.

In making today’s announcement, Acting U.S. Attorney Stetzer commended Postal Inspectors with USPIS for conducting this investigation.

The enforcement action is handled by Assistant U.S. Attorneys Katherine Armstrong and James B. Gatehouse, of the U.S. Attorney’s Office in Charlotte.

The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove to receive a determination of liability.

* * *

In March 2019, the U.S. Attorney's Office announced the Elder Justice Initiative, which 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

In addition to mass mail fraud schemes, other 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. – Today, U.S. District Kenneth D. Bell ordered Ishmeel Qyshawn Chapman, 20, of Charlotte, to serve 16 years in prison and three years of supervised release, on charges stemming from the April 2020 armed robbery of a Dollar General store, announced William T. Stetzer, Acting 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 Acting U.S. Attorney Stetzer in making today’s announcement. 

According to court documents and today’s sentencing hearing, on April 23, 2020, Chapman and another individual entered the Dollar General store located at 8825 WT Harris Boulevard in Charlotte. Upon entering, Chapman’s accomplice pointed a firearm at customers and a store employee, while Chapman grabbed a customer by the arms and forced him to the cash register counter. Court records show that the store employee complied with the robbers’ demands and opened the store’s first cash register, and Chapman’s accomplice began taking money out of it. While the employee was attempting to open the second cash register, Chapman struck the employee on the right side of her head, knocking her to the ground. Court records indicate that Chapman then took the firearm from his accomplice and pointed it at several customers, which included a one-year old child, and ordered the customers to hand over their purses and wallets.

According to court records, Chapman and his accomplice stole $510 from the cash register and fled the scene. As he was leaving the store, Chapman pointed a firearm at a customer and then struck the customer on the shoulder with the gun. CMPD officers alerted to the robbery located Chapman’s getaway vehicle and Chapman was arrested shortly thereafter. At the time of Chapman’s arrest, law enforcement also located the firearm used during the store robbery.  

On December 1, 2020, Chapman pleaded guilty to robbery of a business affecting interstate commerce, or “Hobbs Act” robbery, and possession and brandishing a firearm during, in relation to, and in furtherance of a crime of violence.

Chapman is currently in federal custody in the Western District of North Carolina and will be transferred into 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 FBI and CMPD for their investigation of this case.

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

CHARLOTTE, N.C. – Bobby Cherry, 58, of Manning, South Carolina, appeared before U.S. Magistrate Judge David C. Keesler yesterday and pleaded guilty to wire fraud conspiracy, for his role in a scheme that defrauded Lowe’s of more than $450,000, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.

Acting U.S. Attorney Stetzer is joined in making this announcement by Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte.

According to filed plea documents and today’s court hearing, from August 2019 to March 2020, Cherry and his two co-defendants, Russell Leroy Calvin and Michael Marcel Montgomery, along with other co-conspirators, defrauded Lowe’s through a scheme involving fraudulent business accounts. According to court records, Cherry and his co-defendants created fictional landscaping and home improvement companies to open fraudulent business accounts with Lowe’s, which they then used to make multiple purchases at stores in the Charlotte area and throughout North Carolina, South Carolina and Georgia. Court records show that, once the fraudulent business accounts were approved and funded, the codefendants used them to purchase expensive landscaping equipment, such as zero turn mowers and other items. In total, during the course of the scheme, the co-conspirators opened at least 25 such fraudulent business accounts which they used to obtain more than $450,000 in fraudulently purchased goods. The scheme involved local Lowe’s stores in Mecklenburg, Gaston, Union, Lincoln, Cleveland, and Iredell Counties.   

Cherry pleaded guilty to wire fraud conspiracy which carries a maximum sentence of 20 years in prison and a $250,000 fine. Michael Marcel Montgomery pleaded guilty to the same charge on February 1, 2021. A sentencing date for Cherry and Montgomery has not been set. The charges against the third co-defendant, Russell Leroy Calvin, are still pending, and Calvin is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

In making today’s announcement, Acting U.S. Attorney Stetzer thanked ICE-HSI for their investigation of the case.

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

CHARLOTTE, N.C. – Jessica Anne Miller, 38, of Hickory, N.C., pleaded guilty to federal charges today for stealing more than $68,000 from a federally funded workforce development program, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. Magistrate Judge David C. Keesler presided over the plea hearing.

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

According to filed plea documents and today’s court 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. 

According to court records, as career coach, Miller was responsible for providing career guidance, case management and follow up to participants in the youth program. As Miller admitted in court today, while serving as a career coach, she engaged in a scheme to divert more than $68,000 of government funds for her own benefit, by creating bogus documents, falsifying signatures, and making false and misleading statements to qualified individuals who were supposed to be the recipients of the WOIA funds.

According to court records, to perpetuate the scheme, 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. When victims inquired about the status of their mileage reimbursement claims, Miller gave numerous bogus excuses, including that the program no longer had reimbursement funds available. In other instances, court records show that Miller created fraudulent documents that falsely indicated student-victims had received vaccines and were seeking reimbursements for the costs associated with those vaccines, when in truth and fact the student-victims had not received the vaccines, had no knowledge of the reimbursement forms submitted on their behalf, and did not receive the checks issued in their names. Instead, Miller kept the reimbursement checks, forging the signatures of the student-victims so that she could cash the checks and keep 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, forging student-victims’ signatures, indicating that student-victims had successfully completed certain milestones that would have entitled them to gift cards. Instead of providing those gift cards to the student-victims, Miller kept them for herself.

As Miller admitted in court today, Miller also fraudulently opened bank accounts in the names of at least two student-victims and used those accounts to cash the fraudulent reimbursement checks. Additionally, Miller opened American Express accounts in the names of three student-victims, which she subsequently used to deposit some of the fraudulently obtained reimbursement checks. In total, Miller defrauded at least 40 individuals and diverted more than $68,000 in government funds for her own personal enrichment.

Miller pleaded guilty to wire fraud scheme, which carries a maximum prison term of 20 years and a $250,000 fine. Following today’s plea hearing, Miller was released on bond. A sentencing date for Miller has not been set.

In making today’s announcement, Acting U.S. Attorney Stetzer 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, is in charge of the prosecution.

CHARLOTTE, N.C. – Acting United States Attorney for the Western District of North Carolina William T. Stetzer announced today that the United States District Court for the Western District of North Carolina entered final judgment in the amount of $4.5 million against Douglas Smith, resolving the United States’ claims against Smith, one of the former owners of Physicians Choice Laboratory Services (PCLS), a now-defunct diagnostic testing laboratory formerly located in Charlotte, North Carolina and Rock Hill, South Carolina.  Smith consented to entry of final judgment against him to resolve allegations that he violated the Anti-Kickback Statute (AKS), and, as a result, caused PCLS to submit millions of dollars in false claims for reimbursement to the Medicare program in violation of the federal False Claims Act (FCA).

In June of 2019 the United States filed its Complaint in Intervention asserting FCA claims against Smith, PCLS and other agents of the laboratory based on allegations that they participated in various schemes to offer or provide benefits to physicians in exchange for the referral of patient samples for drug testing.  The United States contended that such conduct violated the AKS, which specifically forbids any person or entity from knowingly and willfully offering, paying, soliciting, or receiving remuneration to influence the referral of items or services reimbursable by a federal health care program, and, that as a result, it was entitled to recover damages under the FCA. 

This settlement resolves the United States’ allegations that from September 2012 through July 2014, PCLS submitted false claims to the Medicare program as a result of Smith’s payment of kickbacks to the owner of a medical practice in Knoxville, Tennessee.

Last week, the U.S. Attorney’s Office for the Western District of North Carolina announced that another defendant, Philip McHugh, also a former owner of PCLS, had agreed to pay over $2 million to resolve claims asserted by the United States that he participated in schemes to illegally induce physicians to refer patients to PCLS for urine drug testing.  In December of 2019, the U.S. Attorney’s Office announced that another defendant, Manoj Kumar, a former sales representative and manager of PCLS, had paid $649,407 to resolve similar claims.

The United States’ civil action was filed in the District of North Carolina following the filing of two whistleblower complaints under the qui tam provisions of the FCA, titled United States ex rel. Jenkins et al. v. Physician’s Choice Laboratory Services et al., originally filed in the Eastern District of Tennessee, and United States ex rel. Hartnett & Shoched v. Physicians Laboratory Services, LLC et al., originally filed in the Middle District of Florida, which were transferred to the Western District of North Carolina and consolidated under Civil Case No. 17-cv-37. 

Resolution of this matter was the result of coordinated efforts and investigation by the U.S. Department of Health and Human Services Office of the Inspector General and U.S. Attorney’s Office. The claims resolved by entry of the judgment are allegations only and there has been no determination of liability.

CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced that Joseph Soldano, 44, of Gastonia, N.C., was sentenced to 12 years in prison today for possession of child pornography. In addition to the prison term imposed, U.S. District Judge Frank D. Whitney ordered Soldano to serve a lifetime of supervised release, to register as a sex offender after he is released from prison, and to pay $22,000 in special assessment fees and $3,000 as restitution.

According to information contained in filed documents and statements made in court, in April 2019, law enforcement determined that an individual later identified as Soldano was using the Kik instant messaging application to communicate with another individual about the sexual abuse of minors, and to receive images containing visual depictions of minors engaging in sexually explicit conduct. Law enforcement visited Soldano’s residence and seized a cell phone. A forensic review of the seized device revealed that Soldano possessed multiple images and videos depicting the sexual abuse of children, including toddlers and infants. On August 18, 2020, Soldano pleaded guilty to possession of material containing child pornography that involved a prepubescent minor. At the time he committed the offense, Soldano was required to register as a sex offender based on his 2001 conviction of Second Degree Sexual Abuse involving an 8-year-old female victim in New York.

In making today’s announcement, Acting U.S. Attorney Stetzer commended the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) for their investigation of the case, and thanked the Gaston County Police Department for their invaluable assistance.

Assistant U.S. Attorneys Cortney Randall and Emily Wasserman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

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

CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced that Gevon Marquise King and Michael Dwane Williams were sentenced to prison late yesterday for selling stolen firearms and related firearm offenses. U.S. District Judge Kenneth D. Bell sentenced King, 35, of Hickory, N.C., to 144 months in prison followed by three years of supervised release, and ordered Williams, 22, also of Hickory, to serve 72 months in prison and two years under court supervision.

According to filed court documents and information presented at the sentencing hearings, from November 2019 to July 2020, King and Williams engaged in the unlawful sale of numerous firearms, some of which were stolen. Court records show that, over the course of the investigation, law enforcement determined that Williams was responsible for several vehicle break-ins in Burke County, from which firearms were stolen. King conspired with Williams to sell the stolen firearms, which included a short barrel rifle, a machine gun, a semi-automatic shotgun, several semi-automatic rifles, and several handguns.

In November 2020, both King and Williams pleaded guilty to dealing in firearms without a license. King also pleaded guilty to possession of a firearm by a felon, and Williams pleaded guilty to possession and sale of stolen firearm.

King is currently in federal custody. Williams has been released on bond and will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement Acting U.S. Attorney Stetzer commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for their investigation of the case, and thanked the North Carolina State Bureau of Investigation, the Hickory Police Department, the Catawba County Sheriff’s Office, and the Burke County Sheriff’s Office for their invaluable assistance.

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

CHARLOTTE, N.C. – William T. Stetzer, Acting United States Attorney for the Western District of North Carolina announced today that the United States has settled claims asserted against Philip McHugh, one of the former owners of Physicians Choice Laboratory Services (PCLS), a now-defunct diagnostic testing laboratory formerly located in Charlotte and Rock Hill, South Carolina. McHugh has agreed to pay $2,021,795.57 to resolve the United States’ allegations that he violated the Anti-Kickback Statute (AKS), and, as a result, caused PCLS to submit millions of dollars in false claims for reimbursement to the Medicare program in violation of the federal False Claims Act (FCA).

In June of 2019, the United States filed its Complaint in Intervention asserting FCA claims against McHugh, PCLS and other agents of the laboratory based on allegations that they participated in various schemes to offer or provide benefits to physicians in exchange for the referral of patient samples for drug testing. The United States contended that such conduct violated the AKS, which specifically forbids any person or entity from knowingly and willfully offering, paying, soliciting, or receiving remuneration to influence the referral of items or services reimbursable by a federal health care program, and, that as a result, it was entitled to recover damages under the FCA. 

“Strategic drug testing, when medically indicated and ordered without the taint of monetary gain, is an important tool that medical professionals can use to safeguard patients by confirming compliance with prescription medications and identifying signs of substance use disorders,” said Acting U.S. Attorney Stetzer. “Offering financial incentives to medical providers in exchange for performing these tests not only violates the law, it undercuts the significant efforts that the medical and law enforcement communities have made to combat the opioid crisis in America.”  

“This laboratory used prohibited financial instruments and giveaways to physicians for patient referrals,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta (HHS-OIG).  “Such quid pro quo arrangements are kickbacks that stifle competition and steer business to the company offering the inducements.”

This settlement resolves the United States’ allegations that during the time period beginning on June 20, 2013, and continuing through October 26, 2015, PCLS submitted false claims to the Medicare program as a result of McHugh’s participation in various kickback schemes, including (1) the provision of urine drug testing equipment, including desktop analyzers and associated supplies and services, to two physicians; (2) PCLS’ payment of volume-based commissions, and later a salary, to an individual in exchange for that individual’s exercise of influence over two physician practices; and (3) the provision of loans to two physicians – all with a purpose to induce the referral of quantitative urine drug tests to PCLS.

In December 2019, the U.S. Attorney’s Office for the Western District of North Carolina announced that another defendant, Manoj Kumar, a former sales representative and manager of PCLS, had paid $649,407 to resolve claims asserted by the United States that he participated in schemes to illegally induce physicians to refer patients to PCLS for medically unnecessary urine drug tests.

The United States’ civil action was filed in the District of North Carolina following the filing of two whistleblower complaints under the qui tam provisions of the FCA, titled United States ex rel. Jenkins et al. v. Physician’s Choice Laboratory Services et al., originally filed in the Eastern District of Tennessee, and United States ex rel. Hartnett & Shoched v. Physicians Laboratory Services, LLC et al., originally filed in the Middle District of Florida), which were transferred to the Western District of North Carolina and consolidated under Civil Case No. 17-cv-37. 

This settlement was the result of coordinated efforts and investigation by the HHS-OIG and U.S. Attorney’s Office. The claims resolved in this settlement are allegations only and there has been no determination of liability.

CHARLOTTE, N.C.  – U.S. District Judge Max O. Cogburn, Jr. sentenced late yesterday former tax return preparer, Aminta Smith, 34, of Charlotte, to 30 months in prison, followed by one year of supervised release, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Judge Cogburn also ordered Smith to pay $171,017 as restitution. In May 2019, a federal jury convicted Smith of filing false tax returns for her clients and herself.

Brian G. Thomas, 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 the sentencing hearing, court documents and evidence presented at trial, Smith owned and operated a Charlotte-based tax preparation business, Touch by Angels Tax Services, also known as Touch by Angels Accounting Services and Smith Tax & Insurance Group, LLC. According to court records, between 2011 to 2016, Smith prepared fraudulent income tax returns for clients that claimed false education credits, false W-2 wages, and false Schedule C businesses to inflate the refunds paid by the IRS. In addition to filing fraudulent income tax returns for her clients, Smith falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2011 to 2015, and in some years failing to disclose that she was in engaged in the operation of a tax preparation business. In total, Smith caused more than $1 million in tax loss to the IRS.

In May 2019, a federal jury convicted Smith of aiding and assisting in the filing of false tax returns and filing false tax returns for herself. Following the sentencing hearing, Smith was released on bond and will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement Acting U.S. Attorney Stetzer commended special agents of IRS-Criminal Investigation for their investigation of the case.

Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte prosecuted the case. Acting U.S. Attorney Stetzer also thanked the Department of Justice’s Tax Division for their invaluable assistance in this case.

CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has returned a criminal indictment charging Herbert Leonel Diaz, 62, a former resident of Henderson County, N.C., with naturalization fraud and passport fraud, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.

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

According to allegations contained in the federal indictment, from December 2003 to August 2006, while residing in Corona, Calif., Diaz committed sexual crimes against a child and was subsequently charged with multiple state offenses. In August 2006, the minor victim reported Diaz’s criminal conduct to law enforcement authorities. The following day, Diaz left California and moved to Henderson County, N.C.

The criminal indictment alleges that in November 2010, while residing in Henderson County, Diaz signed and submitted an application for naturalization to the U.S. Citizenship and Immigration Services (CIS). According to the indictment, Diaz lied on the application form he submitted by responding “No” to the question “Have you ever committed a crime or offense for which you were not arrested?” Diaz also signed the form, certifying that his answers were true and correct.

As alleged in the indictment, in March 2010, Diaz appeared in person at the CIS office in Charlotte for a naturalization interview. During the interview, Diaz swore under oath that his responses on the naturalization application were true and correct. At the conclusion of the interview, Diaz signed his naturalization application in the presence of an officer and swore under penalty of perjury that the contents of his application were true and correct. On March 30, 2011, Diaz appeared again in person at the CIS office in Charlotte and participated in a naturalization ceremony. Diaz was granted U.S. citizenship and received a Certificate of Naturalization.

According to the indictment, in May 2011, Diaz applied for a U.S. passport and submitted his Certificate of Naturalization as evidence of eligibility. The indictment alleges that Diaz also signed the passport application form, certifying that he did not knowingly and willfully make any false statements or included false documents in support of his application. Diaz was issued a U.S. passport in June 2011. In July 2012, law enforcement arrested Diaz on an outstanding warrant from the State of California related to his sexual crimes against the minor victim and he was extradited to California.  In March 2014, Diaz pleaded guilty to five counts of lewd acts with a child and was sentenced to 35 years in prison.

Diaz will be scheduled to appear in federal court in Charlotte. The maximum prison sentence for naturalization fraud and passport fraud is 10 years and a $250,000 fine per charge.

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

In making today's announcement, Acting U.S. Attorney Stetzer thanked ICE-ERO for their investigation of the case.

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

ASHEVILLE, N.C. – A federal jury in Asheville has convicted Jacob Daylen Ross, 46, of Marion, N.C. of child pornography charges, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger presided over the trial, which began on Thursday, March 4th, and ended on Monday, March 8, 2021.

Acting U.S. Attorney Stetzer is joined in making today’s announcement by Ronnie Martinez, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, and Sheriff Ricky T. Buchanan of the McDowell County Sheriff’s Office.

According to filed court documents and evidence presented at trial, in June 2020, law enforcement became aware that Ross was involved in the online sexual exploitation of children overseas. Trial evidence established that Ross paid individuals abroad in exchange for live stream videos depicting children being sexually abused. Specifically, according to trial evidence, on multiple occasions Ross communicated via the WhatsApp messenger application with a woman residing in the Philippines and paid the woman to sexually abuse her young children while Ross watched a live stream video of the abuse. According to evidence presented at trial, law enforcement located on Ross’ seized cell phone 28 images of child pornography, which appeared to have been screenshotted during the course of a live stream video chat. A review of Ross’ Google accounts also revealed additional screenshotted images of the live sexual abuse of children.

The jury convicted Ross of five counts of production of child pornography and one count of possession of child pornography. Ross is currently in federal custody. A sentencing date has not been set.

The production of child pornography charge carries a mandatory minimum sentence of 15 years and a maximum sentence of 30 years in prison per count. The possession of child pornography charge carries a maximum sentence of 20 years in prison. Both charges carry a maximum fine of $250,000.   

In making today’s announcement Acting U.S. Attorney Stetzer 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. The prosecution team was led by Special Assistant United States Attorney (SAUSA) Alexis Solheim. Ms. Solheim is a state prosecutor with the office of the 43rd Prosecutorial District and has been assigned by District Attorney Ashley Welch to serve as a SAUSA with the U.S. Attorney’s Office in Asheville.  Ms. Solheim is duly sworn in both state and federal courts.  The SAUSA position is a reflection of the partnership between the office of the 43rd Prosecutorial District and the United States Attorney’s Office. 

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.

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. – Acting U.S. Attorney William T. Stetzer announced today that a Utah man appeared in federal court and pleaded guilty to federal charges for orchestrating an investment scheme involving mining for precious metals. Andrew Malcolm Lovett, 59, a former resident of Cornelius, N.C., currently residing in Utah, pleaded guilty to securities fraud and transactional money laundering before U.S. Magistrate Judge David C. Keesler.

Matthew D. Line, 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 filed plea documents and today’s plea hearing, from 2014 to 2016, Lovett executed a financial fraud scheme involving investments in mining projects involving precious metals. During the course of the scheme, Lovett fraudulently obtained nearly $850,000 from more than 30 investors, by inducing victims to invest in Safari Minerals, Inc. (Safari) and other entities with which Lovett was affiliated. To induce victims to invest their money, Lovett falsely told them that their money would be used to grow Safari and to develop various purported mining projects.

According to court records, 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 experience in the mining industry. As Lovett admitted in court today, among other things, he lied to investors about the progress and viability of Safari and failed to disclose to investors his diversion of several hundred thousand dollars from Safari for his own personal use.

According to documents filed in court, rather than use the victims’ money to grow Safari’s business as promised, Lovett used a significant portion of the investments to pay for personal expenses like rent, entertainment and travel, and to make Ponzi-style payments to other victim investors.

Following his court appearance, Lovett was released on bond.  The securities fraud charge carries a maximum penalty of 20 years in prison and a $1 million fine. The transactional money laundering charge carries a maximum prison term of 10 years and a $250,000 fine. 

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

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

CHARLOTTE, N.C. – A criminal indictment was unsealed today in federal court following the arrest of two of the three defendants charged with mail theft, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.

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

Haleem Cornelius Gilliland, 23, of Charlotte, North Carolina, Shemar Isaiah Walker, 20, of, Atlanta, Georgia, and Daron Quashawn Wright, 20, of Shelby, North Carolina, are each charged with conspiracy to commit mail theft. Gilliland is also charged with wire fraud and aggravated identity theft. Law enforcement apprehended Gilliland and Walker on March 3, 2021. Wright has not been arrested yet.

According to allegations in the indictment, between November 2019 and February 2020, Gilliland, Walker, Wright and other co-conspirators stole and took letters, postal cards, packages, bags, and other mail (collectively, mail) from the mailboxes of at least nine apartment complexes in North and South Carolina. As alleged in the indictment, Gilliland and other co-conspirators used the stolen mail, including stolen driver’s licenses and stolen credit cards, to pay for car rentals, hotel rooms, and to pay for other personal expenditures. 

Gilliland and Walker are currently in custody. The charge of conspiracy to commit mail theft carries a maximum penalty of five years in prison and a $250,000 fine.  The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine.  The aggravated identity theft charge carries a mandatory term of two years in prison, to be served consecutively to any other term of imprisonment imposed, and a $250,000 fine.

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

In making today’s announcement, Acting U.S. Attorney Stetzer thanked the USPIS for their investigation which led to the charges.

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

CHARLOTTE, N.C. – Harold Broome Jr., 39, of Charlotte, was sentenced today to 181 months in prison and 10 years of supervised release for conspiracy to distribute and to possess with intent to distribute cocaine, announced William T.  Stetzer, Acting 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 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 today’s sentencing hearing, in 2019, law enforcement learned that Broome was distributing large quantities of cocaine in the greater Charlotte area. In April 2019, law enforcement executed a search warrant at Broome’s residence, seizing more than five kilograms powder cocaine, over two pounds marijuana, digital scales, drug paraphernalia, and over $36,000 in cash. Court records show that Broome engaged in drug trafficking activities while on supervised release for a previous federal drug conviction. Broome was arrested on state drug charges and was subsequently released on bond. In December 2019, a federal indictment charged Broome with new drug offenses and an arrest warrant was issued.

In January 2020, law enforcement located and arrested Broome. At the time of his arrest, Broome was continuing to traffic narcotics and was found in possession of bulk cocaine, crack cocaine and marijuana. Subsequent to his arrest, Broome pleaded guilty to a federal superseding indictment, enlarging the scope of his drug trafficking conspiracy.  

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

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

Assistant U.S. Attorneys Sanjeev Bhasker and Dena King, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

CHARLOTTE, N.C. – Jordan Allen Williams, 25, of Charlotte, was sentenced to 12 years in prison today on carjacking and firearms offenses, 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 Williams to serve five years of supervised release upon completion of the prison term.

Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join Acting U.S. Attorney Stetzer in making today’s announcement.

According to court documents and today’s sentencing hearing, on June 2, 2019, at approximately 2:45 p.m., Williams and a co-conspirator approached a male victim at the parking lot of the victim’s apartment complex in Charlotte. Williams pointed a firearm at the victim and ordered the victim to hand over his cell phone, wallet and car keys. The victim complied, and Williams ordered the victim to lay down on the sidewalk or Williams would shoot him. Williams and his co-conspirator fled the scene in the victim’s Jeep Grand Cherokee. CMPD officers located the vehicle shortly thereafter, and Williams and his co-conspirator were arrested after Williams crashed the stolen vehicle while attempting to evade the police.

In March 2020, Williams pleaded guilty to carjacking and brandishing a firearm during, in relation to, and in furtherance of a crime of violence. Court records show that, between 2014 and 2016, Williams was convicted of multiple counts of Breaking and Entering and other felony convictions in Mecklenburg County. During his incarceration for these crimes in 2017, Williams admitted to being a member of the United Blood Nation (UBN) or “Bloods” gang.

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

The investigation was handled by ICE-HSI and CMPD.  Assistant U.S. Attorney William Bozin of the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – Michael Moore, 38, a Liberian national residing in Darby, Pennsylvania, has been arrested on federal charges 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. The criminal indictment was unsealed following Moore’s initial appearance in federal court in the Eastern District of Pennsylvania.

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 allegations contained in the indictment, beginning in January 2016, Moore and others engaged in a fraudulent scheme to defraud unsuspecting victims, some of whom were elderly, by perpetrating an online romance scam. The indictment alleges that Moore and his co-conspirators generally targeted victims through Facebook and other social media platforms with false promises of a romantic relationship. Moore and others allegedly communicated with the victims via emails, text messages, and phone calls, and purported to be in a romantic relationship with the victims, when in reality no such relationship existed. The indictment alleges that Moore and his co-conspirators used a number of lies to steal the victims’ money, including that the money was needed to obtain travel documents or to release funds held by customs officials. In this manner, according to the indictment, Moore and his co-conspirators obtained over $1.5 million from at least 30 victims.

Moore is charged with 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. The indictment alleges that Moore lied to CBP officers and ICE-HSI agents when he was questioned at Charlotte Douglas International Airport about the source of the $75,000 in cash found in his possession, and later, Moore made false statements and representations on a federal form in an attempt to conceal that the money had come from a defrauded victim. Moore is also charged with wire fraud, which carries a maximum prison term of 20 years and a $250,000 fine.

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

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

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

In March 2019, the U.S. Attorney’s Office announced the Elder Justice Initiative, which 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-initiativehttps://www.justice.gov/usao-wdnc/elder-justice-initiative

Some 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. – William T. Stetzer has been named as the Acting United States Attorney for the Western District of North Carolina, following the departure of U.S. Attorney Andrew Murray on February 28, 2021. 

Acting U.S. Attorney Stetzer is a career prosecutor who has dedicated his professional life to public service. Mr. Stetzer joined the U.S. Attorney’s Office in 2018 and has since served as the First Assistant United States Attorney for the Western District of North Carolina.

During his 20+ years of combined service as a state and federal prosecutor, Mr. Stetzer has handled numerous criminal cases and has extensive experience in felony jury trials, including capital and non-capital murder cases.

“It is a great honor to serve the people of the Western District and to work with an incredible group of dedicated public servants,” said Acting U.S. Attorney Stetzer. “The U.S. Attorney’s Office has a long legacy of fulfilling its mission to seek justice and to protect the rights and safety of the public, which I pledge to continue while serving in this new role.”

Since joining the U.S. Attorney’s Office as the Western District’s second-in-command, Mr. Stetzer has maintained an active caseload and has handled a variety of federal criminal prosecutions, including drug trafficking, violent crime, child exploitation, financial fraud, and public corruption cases. Notably, Mr. Stetzer served on the prosecution team in United States v. Lindberg et al., one of North Carolina’s most prominent bribery cases involving public officials.

Prior to joining the U.S. Attorney’s Office, Mr. Stetzer served as Supervisor of the Homicide Prosecution Team at the District Attorney’s (DA’s) Office for Mecklenburg County, which includes Charlotte.  During his seven-year tenure as a Supervisor at the DA’s office, Mr. Stetzer’s unit achieved significant reductions in the homicide case backlog and in case disposition time, while increasing both the conviction rate of homicide defendants and the sentences they received.

From 2007 to 2010, Acting U.S. Attorney Stetzer also served as an Assistant District Attorney for the Gaston County DA’s Office. While there, Mr. Stetzer prosecuted serious violent felony cases including violent assaults, homicides, sexual assaults, and crimes against children.  

In 2020, Mr. Stetzer received the Justice Department’s Assistant Attorney General’s Award for Exceptional Service. He has also been recognized for his lifelong contribution to the pursuit of justice by the FBI, the Crime Victim’s Coalition, and the Charlotte Mecklenburg Police Department Homicide Support Group.  

Mr. Stetzer, who resides in Gaston County, received his undergraduate degree from the University of Central Florida in 1993. He graduated with honors from Washburn University School of Law in 1996. 

Mr. Stetzer’s spouse, Kelly Stetzer, is a prosecutor assigned to the Violent Crimes Unit with the Mecklenburg County DA’s Office.

CHARLOTTE, N.C. – Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced today the filing of a federal civil complaint seeking the forfeiture of $1,047,535 seized from a money mule bank account being used to defraud a Virgin Islands business via a business email compromise scheme.

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

A business email compromise scheme, or BEC, is a sophisticated scam, often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques, to cause employees of the victim company (or other individuals involved in legitimate business transactions with the victim company) to transfer funds to accounts controlled by scammers. In addition to targeting businesses, BEC scams also often target individual victims, convincing victims to make wire transfers to bank accounts controlled by the scammers. Money mule accounts are bank accounts used by fraudsters as a pass-through means of moving fraudulently obtained funds.

According to allegations in the filed civil forfeiture complaint, in or about January 2021, the U.S. Secret Service (USSS) seized $1,047,535 held in a bank account on behalf of Boyang Group, Inc. (Boyang Group). As alleged in the complaint, at the urging of an acquaintance, an individual residing in Matthews, N.C., created Boyang Group in Florida, and opened a bank account in the company’s name.  However, Boyang Group had no legitimate purpose and the Boyang Group’s bank account was operated solely as a pass-through money mule account to receive and distribute proceeds of the BEC scheme.

Specifically, as alleged in the complaint, between July and November 2020, one or more unidentified individuals (UI) perpetrated the BEC scheme against a private Virgin Islands business identified in the complaint as Victim Company. The Victim Company was in the process of purchasing real estate and was using a real estate agency to conduct the sale. The complaint alleges that UI perpetuated the BEC scheme by compromising the business email of an employee of the real estate agency. As alleged in the complaint, in November 2020, the UI used the real estate agency business email account to dupe an employee of the Victim Company, who had authority to conduct financial transactions on behalf of Victim Company, into wiring a payment of approximately $1,344,000 to the Boyang Group’s money mule bank account instead of the real estate agency’s so as to close a real estate sale.

As alleged in the complaint, following the fraudulent wire transfer into Boyang Group’s bank account, a UI initiated a $296,500 outgoing wire transfer from the Boyang Group’s money mule bank account to an unidentified bank account. Ultimately, the Victim Company uncovered the fraud and the theft was reported to law enforcement. Law enforcement traced the initial wire transaction from the Victim Company and proceeded to execute a warrant, seizing the fraudulently obtained funds from the Boyang Group’s money mule bank account. Law enforcement also identified the individual in Matthews who had opened the Boyang Group’s account.

“There has been a steady rise in business email compromise schemes in which online criminals recruit individuals to act as ‘money mules’ and transfer wired money stolen from victims back to the criminal perpetrators,” warned U.S. Attorney Murray. “I urge public, private and government entities and employees to stay vigilant and to protect themselves from BEC fraud, especially when conducting financial transactions at the direction of emails.  And, I urge citizens to act responsibly and think twice before opening a bank account at the request of a person whom they don’t know and with no apparent legitimate purpose. Whether it’s an online romance, a business relationship, or a new work opportunity, remember: if it sounds too good to be true, it probably is.”

In December 2020, the U. Attorney’s Office joined the Justice Department in a landmark initiative aimed at global crackdown on money mule activity. As a result of the initiative, actions were taken to halt the conduct of approximately 2,300 money mules, spanning 92 federal districts. In addition, more than 35 individuals were criminally charged or arrested, including four individuals indicted in Western North Carolina for operating as money mules in two business email compromise schemes.

U.S Attorney Murray also commended the expeditious response of law enforcement stating that, “Law enforcement swiftly identified the money mule bank account and used civil forfeiture laws to secure a significant portion of the stolen funds. Identifying and seizing ill-gotten gains is a priority for my office, and civil asset forfeiture is an invaluable tool in our efforts to stop BEC fraud, particularly where perpetrators cannot easily be identified or apprehended.”

In making today’s announcement, U.S. Attorney Murray thanked the U.S. Secret Service for their investigation of the case.

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

CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell sentenced Aleef Jamar Nicks, 39, of Charlotte, to 108 months in prison yesterday, on drug trafficking and firearm charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Bell also ordered Nicks to serve three years under court supervision after completing his prison term.

Joining U.S. Attorney Murray in making today’s announcement is Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Sheriff Bill Beam of the Lincoln County Sheriff’s Office.

According to filed court documents and the sentencing hearing, on April 30, 2020, a deputy with the Lincoln County Sheriff’s Office conducted a traffic stop of the vehicle in which Nicks was a passenger. An individual later identified as Nicks’ girlfriend was the driver of the vehicle. Court documents show that, over the course of the traffic stop, Nicks removed from a backpack several ounces of cocaine which he gave to his girlfriend, who was pregnant at the time. Law enforcement later found the cocaine on the female passenger. Inside the backpack, law enforcement also found a loaded firearm and several thousand dollars. An analysis of Nicks’ two seized cell phones revealed that he engaged in extensive drug trafficking activities. Law enforcement also found on the cell phones photographs of narcotics, large stacks of cash, and firearms, including the pistol seized from Nicks’ backpack. On November 20, 2020, Nicks pleaded guilty to possession with intent to distribute cocaine and possession of a firearm by a felon. Nicks has three prior federal convictions for drug trafficking and firearms offenses.

Nicks is currently in federal custody. Upon designation of a federal facility, he will be transferred to the custody of the federal Bureau of Prisons.  

In making today’s announcement, U.S. Attorney Murray thanked the DEA and the Lincoln County Sheriff’s Office for their investigation of this case. 

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

CHARLOTTE, N.C. – Markuetric Stringfellow, 37, of Powder Springs, Georgia, was sentenced today to 78 months in prison and 3 years of supervised release for defrauding the North and South Carolina Medicaid programs, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina, and U.S. Attorney Peter M. McCoy, of the U.S. Attorney’s Office for the District of South Carolina. In addition to the prison term imposed, U.S. District Judge Kenneth D. Bell also ordered Stringfellow to pay $5,278,550 as restitution.

The North Carolina Scheme

According to filed court documents and today’s sentencing hearing, Stringfellow was a resident of Charlotte and Greensboro, North Carolina, and a partner in Everlasting Vitality, LLC (EV) and Do-It-4-The Hood Corporation (D4H). D4H operated after-school programs in Charlotte, Greensboro, Winston-Salem, and Rocky-Mount, North Carolina. Beginning in or about January 7, 2016, and continuing through November 12, 2018, Stringfellow and his co-conspirators executed a conspiracy to defraud the North Carolina Medicaid program by soliciting illegal kickbacks from various drug testing laboratories, in exchange for referrals of North Carolina Medicaid beneficiaries obtained through the after-school programs operated by EV and D4H.

According to court documents, Stringfellow and his co-conspirators paid individuals to recruit at-risk youths, in particular children who were Medicaid eligible, for EV’s or D4H’s after-school and youth mentoring programs. Once enrolled, children were required to submit urine specimens for drug testing. Stringfellow and his co-conspirators conspired with certain laboratories to perform the drug testing of the urine specimens submitted in the names of children enrolled at EV and D4H and received kickbacks after the laboratories were reimbursed by the North Carolina Medicaid.

In addition to the kickback scheme, Stringfellow and his conspirators devised a scheme to defraud North Carolina Medicaid by referring clients to laboratories which they knew would file fraudulent claims and receive reimbursement based on drug testing services that did not meet the drug testing policy requirements. For example, on some occasions, Stringfellow and his co-conspirators obtained personal identifying information (PII) of D4H clients, such as names, addresses, dates of birth, and Medicaid beneficiary numbers, which they provided to drug testing laboratories. In turn, the laboratories used D4H clients’ PII to submit drug testing claims to the North Carolina Medicaid that were fraudulent because, among other reasons, the drug tests were not medically necessary, or the urine specimens were not of the Medicaid beneficiaries under whose names they were submitted. Once North Carolina Medicaid paid the fraudulent claims submitted by the testing laboratories for these unauthorized and medically unnecessary drug tests, the labs then paid companies under the control of Stringfellow and others, at an agreed percentage of their Medicaid reimbursement.

The South Carolina Scheme

In addition to executing a fraudulent scheme in North Carolina, Stringfellow defrauded the South Carolina Medicaid program. According to court documents filed with the U.S. District Court in South Carolina, Stringfellow was a franchise owner of Wrights Care Services LLC (Wrights Care), a qualified provider of Medicaid rehabilitative behavioral health services in South Carolina.  Wrights Care was located at 1320 Main Street, in Columbia, South Carolina, and maintained separate franchise locations throughout South Carolina, including in Spartanburg, Pickens, Cheraw, Society Hill, Bennettsville, Hartsville, and Conway. In April 2014, Wrights Care became a participating provider in the South Carolina Medicaid program, which allowed Wrights Care to submit claims for behavioral mentoring services reimbursable under Medicaid. 

Starting in or around 2014, Stringfellow and his co-conspirators defrauded the South Carolina Medicaid program by filing fraudulent claims for services that were either not provided, partially provided, or did not qualify for reimbursement.  According to court records, to support the fraudulent reimbursement claims filed with the South Carolina Medicaid, Stringfellow and his co-conspirators submitted falsified patient billing records and fake medical notes. Furthermore, court records show that after learning there was a Medicaid audit for Wrights Care, Stringfellow and his co-conspirators attempted to deceive South Carolina Medicaid auditors. In or about March 2015, Stringfellow met other associates of Wrights Care in Columbia for a “note party,” during which the co-conspirators created false and fraudulent billing records to substantiate previously-submitted fraudulent Medicaid claims, forged signatures, and falsified records subject to the audit, which they then submitted to South Carolina Medicaid auditors in response to the audit.

In July 2020, the criminal case pending against Stringfellow in South Carolina federal court was transferred to the U.S. District Court for the Western District of North Carolina for further proceedings. On August 21, 2020, Stringfellow pleaded guilty to conspiracy to commit Medicaid fraud in connection with both federal prosecutions.

Stringfellow will be ordered to report to the federal Bureau of Prisons to begin serving his sentence upon designation of federal facility.

In making today’s announcement U.S. Attorney Murray and U.S. Attorney McCoy commended the investigative work of the FBI field offices in Charlotte, Columbia and Atlanta, and the Medicaid Investigation Divisions in Raleigh, Columbia and Atlanta, and thanked the U.S. Attorney’s Office for the Northern District of Georgia for their assistance and coordination.

Assistant U.S. Attorneys Michael Savage with the U.S. Attorney’s Office in Charlotte and Brook Andrews with the U.S. Attorney’s Office in Columbia prosecuted the case.

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Ted D. Melton, 46, of Charlotte, to 365 months in prison on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.  Melton was also ordered to register as a sex offender and to serve the rest of his life under court supervision after he is released from prison.  Judge Bell also ordered Melton to have no contact with victims of child pornography.

U.S. Attorney Murray 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 Sheriff Darren Campbell of the Iredell County Sheriff’s Office.

On October 21, 2020, Melton pleaded guilty to production of child pornography and possession with intent to view child pornography containing a minor who had not attained 12 years of age. According to filed documents and statements made in court, in February 2015, officers with the Internet Crimes Against Children (ICAC) task force determined that an individual later identified as Melton was using a peer-to-peer file sharing program to distribute child pornography. According to court records, in June 2015, law enforcement officers executed a search warrant at Melton’s residence, and seized his computers, a camera and a cell phone. Over the course of the investigation law enforcement determined that Melton had also sexually abused two minor females and had produced child pornography. A forensic analysis of Melton’s devices revealed that he possessed more than 18,000 images and 850 videos containing sexually explicit conduct involving children, including the child victims Melton had sexually assaulted. 

Melton was arrested on state charges in 2015. He was transferred to federal custody in November 2019 upon his indictment on federal charges. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. 

In making today’s announcement U.S. Attorney Murray commended the FBI in Charlotte and the Iredell County Sheriff’s Office for their investigation of the case and thanked the Statesville Police Department for their invaluable assistance. 

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

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

CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has indicted Michael A. Kennedy, 55, of Charlotte, on conspiracy and honest services wire fraud charges, for his role in an extensive bribery and kickback scheme that defrauded his employer, Cargill, announced Andrew Murray, 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 Tommy D. Coke, Inspector in Charge of the Atlanta Divsion of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney Murray in making today's announcement.

According to allegations in the indictment, Kennedy was a senior employee within Cargill’s division of strategic sourcing. Choung “Shawn” Nguyen was a procurement manager within the same division and reported to Kennedy. Brian Ewert was co-owner and primary sales representative of WDS, Inc., also known as Women’s Distribution Services, Inc. (WDS), a South Carolina-based company that provided non-raw materials and services to Cargill and its affiliates.

According to allegations in the indictment and information contained in filed court documents in related cases, from 2009 to 2016, Kennedy conspired with Ewert, Nguyen, and others to carry out a fraudulent bribery and kickback scheme. The indictment alleges that, during the course of the scheme, Ewert provided Kennedy and Nguyen and other Cargill employees with more than a $1 million in cash, gifts, and vacations, in exchange for them, among other things, putting the interests of WDS, and other companies Ewert controlled, ahead of Cargill’s, including by helping to conceal the fact that WDS was overcharging Cargill. For example, the indictment alleges that, as part of the conspiracy, Ewert provided Kennedy and his family with lavish trips that cost hundreds of thousands of dollars, including trips to the Caribbean on Ewert’s private jet and luxury yacht rentals to entertain Kennedy and his family. Ewert also paid for Kennedy and his family to go to Disney World and took them on ski trips. The indictment alleges that Kennedy and others concealed from Cargill the fact that they had received from Ewert the illicit bribes and kickbacks, in breach of their fiduciary duties to Cargill.

As alleged in the indictment, in early 2016, after others within Cargill began questioning the relationship between WDS and Cargill, Kennedy, Ewert, and others took numerous steps to conceal from Cargill significant overcharging of Cargill by WDS. Cargill eventually discovered the scheme and terminated its relationship with WDS and Ewert and fired Kennedy and Nguyen.

Kennedy had his initial appearance today before U.S. Magistrate Judge Gwynne E. Birzer in the U.S. District Court for the District of Kansas where Kennedy was arrested. The charges in the indictment each carry a maximum penalty of 20 years in prison and a $250,000 fine.

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

In November 2019, Ewert, Nguyen and Jennifer Maier, the co-owner and Chief Executive Officer of WDS, were sentenced to 60, 41, and 24 months in prison, respectively, for defrauding Cargill.

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

CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad Jr sentenced Luis Analberto Pineda-Anchecta, 38, a Honduran national, to 240 months in prison and five years of supervised release on kidnapping charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.

Ronnie Martinez, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney Murray in making today’s announcement.

According to filed court documents, evidence presented at Pineda-Anchecta’s trial and today’s sentencing hearing, on or about May 15, 2019, CMPD officers arrested Pineda-Anchecta on several state charges, including Assault on a Female and Communicating Threats against his ex-girlfriend, identified in court documents as F.M. Two days following his arrest, Pineda-Anchecta was released from state custody on bond. As trial evidence established, in the evening of May 21, 2019, F.M. was approached by two masked men as she was walking to her vehicle parked at her apartment complex in Charlotte.  The victim recognized one of the masked men as Pineda-Anchecta, who grabbed the victim by the arm, stuffed a cloth in her mouth, and wrapped a cord or rope around her head so the cloth would stay in place.  Pineda-Anchecta and the other masked man forced F.M. against her will into the passenger seat of a vehicle, and Pineda-Anchecta told F.M. “I love you and I’m going to kill you.” According to trial evidence, the other masked individual did not accompany Pineda-Anchecta and F.M. in the vehicle.  

Pineda-Anchecta then drove his vehicle on Lancaster Highway. Court records show that that while Pineda-Anchecta was driving, he maintained a tight grip on the plastic rope tied around the victim’s face.  After traveling a short while on Lancaster Highway, Pineda-Anchecta parked his vehicle on the side of the road near a wooded area and turned off the vehicle’s engine.  Pineda-Anchecta maintained his grip on the plastic rope around F.M.’s face and pulled the victim out of the car. He then dragged the victim to wooded area off of Lancaster Highway with which he was familiar, as the defendant had gone fishing there on previous occasions.

Following a struggle between Pineda-Anchecta and F.M., the victim was able to escape and run into the middle of the highway and was assisted by motorists who stopped to offer help.  According to court records, the victim identified Pineda-Anchecta as the person who had assaulted her. Pineda-Anchecta left the scene on foot. After obtaining a search warrant, CMPD officers searched Pineda-Anchecta’s vehicle, from which they recovered a spool of plastic rope similar to the rope wrapped around the victim’s face during the course of the kidnapping. Law enforcement also located the victim’s phone in Pineda-Anchecta’s vehicle. On June 23, 2020, a federal jury convicted Pineda-Anchecta of kidnapping following a two-day trial.

In determining today’s sentence, Judge Conrad noted that this incident was “a series of violent acts between the defendant and victim that escalated over time and culminated into this offense.” Judge Conrad enhanced the sentence after noting that “this was not a mere kidnapping, but that the defendant intended to kill the victim.”

Pineda-Anchecta 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 defendant will also be subject to deportation proceedings upon the completion of his federal sentence. Pineda-Anchecta was previously convicted of illegal reentry by a deported alien and was sentenced to seven months in prison.

In making today’s announcement U.S. Attorney Murray commended ICE’s Homeland Security Investigations and CMPD for their investigation of this case. He also thanked ICE’s Enforcement and Removal Operations for their assistance.

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

CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte returned a federal criminal indictment last week, charging Richard Allen Clark, 55, of Lenoir, North Carolina, with federal offenses arising from his embezzlement of more than $1 million from his former employer, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.  The federal charges include mail fraud, money laundering and filing false tax returns. Clark had his initial appearance in court today before U.S. Magistrate Judge David C. Keesler.

Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, 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 U.S. Attorney Murray in making today’s announcement.

According to allegations in the criminal bill of indictment, beginning January 1, 2013 through May 31, 2019, Clark was employed as an office manager for two family owned businesses in Lenoir.  As an office manager, Clark 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. As the indictment alleges, Clark used his position and his access to the companies’ financial records and bank accounts to embezzle more than $1 million from his employers.

According to allegations in the indictment, Clark embezzled money from his employers in a number of ways. In some instances, the indictment alleges, Clark created company checks payable to himself and falsified the entries in financial records. Clark also allegedly diverted to himself company payments to IRS that were supposed to cover payroll taxes. In addition, indictment also alleges that Clark stole money from a company bank account the owner had directed Clark to close. Instead of closing the account, Clark allegedly used it to steal from his employer, by instructing customers to make payments to that account and then diverting the funds for his personal use.

According to allegations in the indictment, Clark 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.

During the relevant period, Clark allegedly failed to claim the additional income he stole on his IRS tax returns. The indictment alleges that in addition to his earned wages, Clark moved over $1 million from his employers into various personal bank accounts he controlled.  However, Clark falsely declared only his legitimate W-2 income on his 2014 through 2018 U.S. Joint Income Tax Returns, resulting in approximately $195,000 in lost taxes to the United States.

Clark is charged with five counts of mail fraud affecting a financial institution, which carry a maximum prison term of 30 years in prison and a $ 1 million fine per count; five counts of making and subscribing a false return, which carry a maximum term of three years in prison and a $100,000 fine per count; and one count of money laundering, which carries a maximum penalty of 20 years in prison and a $500,000 fine.

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

In making today’s announcement U.S. Attorney Murray thanked IRS-CI, the USPIS, and the Caldwell County Sheriff’s office for their investigation which led to the charges.

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

CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has indicted Rashawn Prioleau, 35, of Charlotte, on multiple financial institution fraud and aggravated identity theft charges, for stealing more than $60,000 from government-funded COVID-19 benefit programs, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.

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

According to allegations in the criminal bill of indictment, Prioleau engaged in a scheme to defraud the U.S. Department of Labor (DOL), the U.S. Small Business Administration (SBA) and other North and South Carolina state agencies by filing fraudulent claims for COVID-19 related unemployment insurance (UI) benefits using stolen information of identity theft victims. The indictment further alleges that Prioleau also fraudulently applied for two Economic Injury Disaster Loans (EIDL) based on false information.

As alleged in the indictment, from at least April 2020 to September 2020, Prioleau obtained the personal identifying information (PII) of at least seven identity theft victims, including names, Social Security Numbers, dates of birth, and addresses, and used it to file for fraudulent UI benefits in North and South Carolina. Prioleau allegedly directed the payments of the UI benefits be made to debit cards or bank accounts under his control. As alleged in the indictment, in July 2020, Prioleau also applied with the SBA for two EIDLs, using fraudulent business information. Over the course of the scheme, Prioleau allegedly obtained approximately $60,397 in government-funded COVID-19 benefits.

Prioleau is charged with nine counts of bank fraud, which carry a maximum prison term of 30 years and a $1,000,000 fine per count; two counts of making a false statement to the SBA, which carry a maximum term of 30 years in prison and a $1,000,000 fine per count; and two counts of aggravated identity theft, which carry a minimum prison term of two years per count, consecutive to any other prison term imposed, and a $250,000 fine. Prioleau had his initial court appearance today before U.S. Magistrate Judge David C. Keesler.

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

In making today’s announcement U.S. Attorney Murray thanked the U.S. Postal Inspection Service for their investigation which led to the charges.

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

The Coronavirus Aid, Relief and Economic Security (CARES) Act is a federal law enacted 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. The Economic Injury Disaster Loan (EIDL) sponsored by the United States Small Business Administration (SBA) was expanded under the CARES Act, and it is designed to provide support for small businesses to remedy economic harm caused by the COVID-19 outbreak.

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

CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Jose Flores Romero, 29, of Mexico, to 87 months in prison followed by three years of supervised release on drug trafficking charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.

According to filed court documents and today’s sentencing hearing, on February 21, 2020, law enforcement in Kansas seized 25 kilograms of cocaine from two individuals operating as drug couriers, who were traveling from California to Charlotte. According to court records, the couriers informed law enforcement that they had made multiple drug deliveries from California to Charlotte. Over the course of the investigation, law enforcement identified Romero as one of the intended recipients of the seized cocaine in Charlotte, and determined that Romero was involved in numerous previous drug deliveries, including a drug delivery worth over $800,000.  On July 23, 2020, Romero pleaded guilty to conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine, and attempt to possess with intent to distribute five kilograms or more of cocaine.

Romero is currently in federal custody.  Upon designation of a federal facility he will be transferred to the custody of the federal Bureau of Prisons. The defendant will also be subject to deportation proceedings upon the completion of his federal sentence.

In making today’s announcement U.S. Attorney Murray thanked the U.S. Drug Enforcement Administration and the Kansas Highway Patrol for their investigation of this case. Assistant U.S. Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.   

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.  OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States 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. – U.S. Attorney Andrew Murray announced that Jasmine Johnnae Clifton, 24, of Charlotte, appeared in court today on federal charges, for fraudulently obtaining a COVID-19 loan for almost $150,000 from the U.S. Small Business Administration (SBA).

Matthew D. Line, Special Agent in Charge of the Internal Revenue Service, 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 U.S. Attorney Murray in making today’s announcement.

On Wednesday, February 17, 2021, a federal grand jury sitting in Charlotte indicted Clifton on charges of wire fraud in relation to a disaster benefit, and fraud in connection with major disaster or emergency benefits. According to allegations in the criminal bill of indictment, Clifton engaged in a scheme to defraud the SBA by obtaining an Economic Injury Disaster Loan (EIDL) based on false information.

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

The indictment alleges that Clifton created Jazzy Jas LLC, an online retail clothing sales business, in April 2019.  On July 24, 2020, Clifton submitted a fraudulent loan application to the SBA for Jazzy Jas, despite the fact the company had been dissolved by Clifton several months prior. As a result of the fraudulent application, which included false information about revenues and a fraudulent tax document, Clifton obtained $149,900 in disaster relief funds that were intended to be provided to an existing business harmed by the COVID-19 pandemic. On or about August 14, 2020, the EIDL funds were deposited directly into Clifton’s bank account. Clifton allegedly used the government funds to make purchases at numerous retail stores, including at Nordstrom, Ikea, Neiman Marcus, Rooms To Go, Louis Vuitton, Best Buy and other retail shopping outlets.  Clifton also made purchases at multiple diamond stores. 

Clifton was released on bond following today’s court appearance. The charge of wire fraud in relation to disaster benefit carries a maximum prison term of 30 years and a $1,000,000 fine. The maximum penalty for fraud in connection with major disaster or emergency benefits is 30 years in prison and a $250,000 fine.

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

In making today’s announcement U.S. Attorney Murray thanked IRS-CI and USPIS for their investigation which led to the charges.

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

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

ASHEVILLE, N.C. – On February 19, 2021, U.S. District Judge Max O. Cogburn Jr. sentenced Michael Lawrence Feith, 34, of Asheville, to 84 months in prison for distribution of child pornography, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. Feith was also ordered to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.

Chief David Zack of the Asheville Police Department joins U.S. Attorney Murray in making today’s announcement.

According to filed documents and statements made in court, on April 6, 2019, and May 13, 2019, law enforcement became aware that an individual, later identified as Feith, was using a peer-to-peer network to share with other users files containing images and videos depicting the sexual abuse of children. According to court records, on July 30, 2019, law enforcement executed a search warrant at Feith’s residence in Asheville. During the execution of the search warrant, law enforcement seized a custom built desktop computer. A forensic examination of the device revealed that it contained multiple images and videos depicting children being sexually abused. In total, law enforcement located 18 images and 150 videos of child pornography on Feith’s device. Court records also show that the peer-to-peer software was also located on the device. A forensic examination indicated that 128 different child pornography files had been shared 5,886 times with others via the peer-to-peer network.

On July 27, 2020, Feith pleaded guilty to distribution and attempted distribution of child pornography. He is currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. 

In making today’s announcement, U.S. Attorney Murray commended the APD for their investigation of the case and thanked the North Carolina State Bureau of Investigation and the Boone Police Department for their invaluable assistance.  The U.S. Attorney’s Office in Asheville handled the prosecution.

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

ASHEVILLE, N.C. – U.S. Attorney Andrew Murray announced today that Fredrick Thomas Gettins Strohm, 41, of Jackson County, was sentenced to 18 months in prison and three years of supervised release for embezzling more than $95,000 from an Indian tribal organization. U.S. District Judge Martin Reidinger presided over the hearing. In addition to the prison term imposed, Judge Reidinger also ordered Strohm to pay $199,077.06 to the Eastern Band of Cherokee Indians (EBCI) as restitution.

Chief Doug Pheasant of the Cherokee Indian Police Department joins U.S. Attorney Murray in making today’s announcement.

According to plea documents filed in the case and today’s sentencing hearing, Strohm was employed as an Office Manager at Cherokee Broadband Enterprises (CBE), an entity of the Eastern Band of Cherokee Indians. In that capacity, Strohm had access to CBE’s bank accounts and bank cards, which he was authorized to use to pay for business related expenses. Beginning in August 2014, and continuing through February of 2018, Strohm used his access to CBE’s bank accounts and bank cards to pay for personal expenses and to make large cash withdrawals. For example, Strohm unlawfully used CBE funds to pay for numerous personal purchases on Amazon, and to pay approximately $52,040.55 in personal credit card debt. During the relevant time period, Strohm also used CBE funds to make approximately $45,855.01 in PayPal payments, some covering personal purchases and some consisting of cash payments to himself. In total, during the relevant time period, Strohm embezzled approximately $199,077.06 of CBE funds.

Court records also show that, throughout the years in which he was engaged in the wrongdoing, Strohm attempted to conceal his embezzlement from the authorities within the Eastern Band of Cherokee Indians. To do so, Strohm altered bank statements for the CBE bank account he submitted to Tribal Finance, and further attempted to conceal evidence by deleting QuickBooks files from the CBE computer located in his office. According to court records, the authorities within the Eastern Band of Cherokee Indians were able to recover the deleted files and uncover Strohm’s theft.

In making today’s announcement, U.S. Attorney Murray commended the Cherokee Indian Police Department for their investigation of this case and thanked EBCI Attorney General Michael McConnell and his office for their invaluable assistance.

Assistant U.S. Attorney Daniel Bradley, of the U.S. Attorney’s Office in Asheville, prosecuted the case.

CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that Samuel Lamont Harris Sr., 28, of Gastonia, North Carolina, was sentenced to 54 months in prison, followed by three years of supervised release for illegal possession of a firearm. U.S. District Judge Kenneth D. Bell presided over the hearing.

According to filed court documents and today’s sentencing hearing, on March 30, 2019, a state trooper with the North Carolina State Highway Patrol conducted a traffic stop of the vehicle Harris was driving in Lincoln County, North Carolina. During the traffic stop, law enforcement determined that Harris was driving with a suspended license and located a loaded firearm between the center console and the passenger side seat of the vehicle. Over the course of the investigation, law enforcement determined that the firearm was reported stolen on or about November 5, 2018, out of Caldwell County, North Carolina. Harris has a prior felony conviction and he is prohibited from possessing a firearm or ammunition.

On September 11, 2021, Harris pleaded guilty to possession of a firearm by a convicted felon. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney Murray commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the North Carolina Highway Patrol for their investigation of this case, and thanked District Attorney Mike Miller, of North Carolina’s 39th Prosecutorial District, for his office’s invaluable assistance and coordination.

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

CHARLOTTE, N.C. – David Kyle Reeves, of, Gastonia, N.C., has been indicted by a federal grand jury in Charlotte for making threats against the President of the United States and related charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.

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

Reeves was arrested on Friday, February 5, 2021, via a federal complaint. According allegations in the affidavit filed with the complaint and the indictment, between January 28 and February 1, 2021, Reeves contacted multiple times the White House switchboard via telephone and made threats against President Biden and others. Court documents allege that, a Secret Service agent contacted Reeves to discuss the threats. Reeves allegedly proceeded to call back the Secret Service agent multiple times throughout the day, and repeated the threats against the President, the Secret Service agent, and others. Court documents further allege that, on the same day, Reeves also contacted the U.S. Capitol Police switchboard and communicated similar threats.

The indictment charges Reeves with making a threat against the President of the United States, which carries a maximum penalty of five years in prison, and a $250,000 fine; two counts of interstate communications with intent to injure, which carry a maximum sentence of 5 years in prison and a $250,000 fine per count; and influencing a federal official by threat, which carries a maximum penalty of 10 years in prison and a $250,000 fine.

Reeves is currently in federal custody. Reeves’ court hearing on the new charges has not been scheduled yet. The charges against Reeves are allegations. The defendant is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.

The Secret Service investigated the case. Assistant U.S. Attorney William Bozin, of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Joshua Wayne Clemons, 40, of Boone, North Carolina, to 25 years in prison on child pornography charges, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.  Clemons was also ordered to pay a $52,000 special assessment fee, to serve a lifetime of supervised release, and to register as a sex offender after he is released from prison.

According to information contained in filed documents and statements made in court, in October 2019, law enforcement determined that an individual later identified as Clemons was using a peer-2-peer network to download and transmit child pornography. In November 2019, law enforcement executed a search warrant at Clemons’ residence and seized numerous computer devices and a cell phone. A forensic review of the seized devices revealed that they contained more than 755 images depicting the sexual abuse of children. On August 11, 2020, Clemons pleaded guilty to possession and distribution and attempted distribution of child pornography. At today’s sentencing hearing, Judge Bell enhanced Clemons’ sentence, based on Clemons’ prior convictions of Indecent Liberties with a Child.

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In a separate case, Frank Darrell Cromwell, 24, of Boone, N.C., has pleaded guilty to production of child pornography. According to plea documents and today’s plea hearing, between December 2018 and February 2019, Cromwell used Snapchat to convince a minor victim that Cromwell was a female, and to communicate with the minor. During the relevant time period, Cromwell admitted to inducing the minor victim to engage in sexually explicit conduct and to send explicit images and videos to Cromwell. The defendant entered his guilty plea before U.S. Magistrate Judge David C. Keesler. At sentencing, Cromwell faces a minimum penalty of 15 years and a maximum of 30 years in prison. A sentencing date has not been set.

In making today’s announcement, U.S. Attorney Murray commended the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Boone Police Department for their investigation of both cases, and thanked the North Carolina State Bureau of investigation for their invaluable assistance with Cromwell’s investigation.

Assistant U.S. Attorneys Emily Wasserman and Mark Odulio prosecuted Clemons’ case. Assistant U.S. Attorneys Cortney Randall and Emily Wasserman, and Special Assistant U.S. Attorney Stephanie Spaugh are in charge of Cromwell’s prosecution.

Both cases 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. – Yakotus Odum, 31, of Gastonia, North Carolina, was sentenced late yesterday to 114 months in prison and five years of supervised release in connection with the 2018 armed robbery of a convenience store, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. presided over the hearing.

Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Travis Brittain of the Gastonia Police Department are joining U.S. Attorney Murray in making today’s announcement. 

On September 25, 2020, a federal jury convicted Odum of Hobbs Act robbery, possession of a firearm in furtherance of a crime of violence, and possession of a firearm by a convicted felon. According to court documents, evidence presented at Odum’s trial, and court hearings, on March 31, 2018, Odum robbed a Circle K convenience store located at 516 Cox Road in Gastonia. Trial evidence established that Odum stole approximately $100 from the cash register at gunpoint. On April 14, 2018, in a second incident, Odum illegally possessed a stolen firearm. Odum was on supervised release for a previous federal felony conviction for illegal firearm possession when he committed the armed robbery.

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

The investigation was handled by the FBI and the Gastonia Police Department.  The prosecution for the government was handled by Assistant U.S. Attorney David Kelly and Special Assistant U.S. Attorney (SAUSA) Stephanie Spaugh. Ms. Spaugh is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte.  Ms. Spaugh is duly sworn in both state and federal courts.  The SAUSA position is a reflection of the partnership between the office of the 26th Prosecutorial District and the United States Attorney’s Office.