Western District of North Carolina

CHARLOTTE, N.C. – United States Attorney R. Andrew Murray announced today that the Western District of North Carolina will hire three Assistant U.S. Attorneys (AUSAs), following an announcement by the Justice Department regarding newly-allocated AUSA positions.  Two AUSAs will focus on violent crime prosecutions, and one will join the Office’s Affirmative Civil Enforcement (ACE) unit, with a special focus on civil opioid enforcement. 

“Reducing violent crime and tackling the opioid abuse epidemic are priority areas for my Office and the Justice Department,” said U.S. Attorney Murray.  “The addition of three federal prosecutors will further our mission to seek justice and to keep the citizens of Western North Carolina as safe as collectively possible.”

In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSAs will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.

“Under President Trump’s strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements,” said Attorney General Jeff Sessions. “We have a saying in my office that a new federal prosecutor is ‘the coin of the realm.’  When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades.”

 ASHEVILLE, N.C. – A 23-count criminal indictment was returned by a federal grand jury sitting in Asheville late Tuesday, charging former Buncombe County Manager Wanda Skillington Greene, 66, of Arden, N.C., with wire fraud, federal program fraud, and money laundering, in connection with a $2.3 million scheme involving the purchase of whole life insurance policies for herself and other county employees using misappropriated County funds, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.

John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Director Robert Schurmeier of the North Carolina State Bureau of Investigation (SBI); and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), join U.S. Attorney Murray in making today’s announcement.

According to the indictment, Wanda Greene was appointed as County Manager for Buncombe County (the County) in 1997, and remained in that position until her retirement in June 2017.  As County Manager, Wanda Greene was responsible for the administration of all departments of the County’s government under the control of the Board of Commissioners (the Board).  In that role, Wanda Greene had the power to appoint, suspend, and remove all county officers, employees, and agents, and was responsible for directing and supervising the administration of all county offices, departments, boards, commissions and agencies controlled by the Board.  As part of her duties, Wanda Greene was also required to prepare and submit the County’s annual budget and capital program to the Board, and to submit annually to the Board, and make available to the public, a complete report of the finances and administrative activities of the county at the end of the fiscal year. 

According to allegations contained in the indictment, beginning in or about April 2015, and continuing until in or about July 2017, Greene defrauded Buncombe County by misappropriating approximately $2.3 million of Buncombe County funds to purchase whole life insurance policies for herself, her son Michael Greene, and eight other County employees, and to purchase an annuity for another county employee who did not qualify for a whole life insurance policy. During the time period relevant to the indictment, Buncombe County received benefits in excess of $10,000 per year under a federal program involving a grant, contract, subsidy, loan, and other forms of federal assistance. 

The indictment alleges that in April 2015, Greene began communicating with a Charlotte-based insurance agent about her intent to procure insurance policies for herself and certain other Buncombe County employees at County expense.  Shortly after meeting with the insurance agent, Greene falsely began telling selected County employees that she had been working with the Board on a new benefit program for certain employees involving the County’s purchase of life insurance policies for them, at no expense to the employee.  Greene allegedly stressed that only certain employees would be receiving this benefit, and told the employees with whom she spoke to keep this program and their participation strictly confidential.

According to the indictment, the policies that Greene was procuring were whole life insurance policies, with a resulting cash value and the ability to borrow against such policies.  Furthermore, the indictment alleges that, at Greene’s direction, the County prepaid the initial payment and several years’ worth of annual premiums for each policy agreement, which meant that, upon termination of the policy, a policy owner could receive whatever cash value the policy had, as well as the remaining prepaid premiums. The indictment alleges that in this manner, in the first month after Greene retired from her County employment, she was able to obtain cash out of two such policies, thereby personally obtaining approximately $396,000 of fraudulently-acquired money funded by Buncombe County. 

According to allegations in the indictment, Greene selected the employees that would receive the life insurance policies and selected the amounts the County would prepay for each policy.  To fund the scheme, Greene did not seek the Board’s authorization to purchase these policies with County funds.  Rather, in order to gain access to the County money necessary to fund her scheme, the indictment alleges that Greene inflated the settlement amounts for two federal civil rights lawsuits against the County that the Board agreed to pay.  She later fraudulently claimed to the life insurance company, the insurance agent, and to the various County employees that the Board had also approved and enacted funding for the life insurance program she had created when it enacted a budget amendment to settle those lawsuits, when, in fact, the Board never approved, and never even knew about the existence of, Greene’s life insurance scheme. 

The indictment further alleges that after the Board approved the requisite budget amendment to fund the settlement of the civil lawsuits, Greene caused a series of interstate wire transactions to make initial lump-sum prepayments, and later quarterly payments, toward the premiums of the various insurance policies.  According to the indictment, shortly before she announced her intention to retire, Greene attempted to quadruple the quarterly payments from $40,000 to $160,000.  When the County’s Finance Director expressed concern about the increased amount, Greene destroyed the handwritten note she had provided requesting the increase, and told the Finance Director to forget about any more payments. 

On May 30, 2017, Greene publicly announced her retirement, which took effect on June 30, 2017.  The indictment alleges that, almost immediately upon her retirement, Greene liquidated her two life insurance policies.  As a result, on or about July 13, 2017, the insurance company sent Greene two checks totaling $395,859.60, which Greene deposited into her State Employee Credit Union account. Less than a month later, on or about August 7, 2017, Greene used a portion of the proceeds from the insurance checks to wire $155,000 from her State Employees Credit Union account to the account of a law firm in Nashville, Tennessee.

Wanda Greene has been ordered to appear on a summons on the charges.  She is charged with 12 counts of wire fraud, each of which carries a maximum penalty of 20 years in prison and a $250,000 fine; eight counts of federal program fraud, each carrying a maximum prison term of 10 years per count and a $250,000 fine; and three counts of money laundering, which carry a maximum penalty of 10 years in prison per count and a $250,000 fine.

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

A separate federal indictment was filed in April 2018, against Wanda Greene and her son, Michael Greene, for misusing their government credit cards to make approximately $200,000 worth of improper purchases.  Those charges are still pending.

In making today’s announcement U.S. Attorney Murray thanked the FBI, IRS-CI and the SBI for their investigation of this case, and noted that the investigation into allegations of criminal activities within the Buncombe County Government is ongoing.

Assistant United States Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.

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CHARLOTTE, N.C. – A Matthews, N.C. man was arrested on Friday, June 1, 2018, for attempting to hire a hitman via the internet to murder a Charlotte area resident, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.  Bryant Riyanto Budi, 26, appeared in federal court today before U.S. Magistrate Judge David C. Keesler.

John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Nick S. Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas join U.S. Attorney Murray in making today’s announcement.

According to allegations in the filed Complaint, in April and May 2018, Budi contacted an HSI undercover agent (UCA) located in Buffalo, New York via the internet to conduct a murder-for-hire.  The Complaint alleges that Budi used online usernames, encrypted messaging platforms, and encrypted email services to disguise his true identity from the undercover agent. During the course of communications between Budi and the UCA, Budi hired the UCA to murder an individual who resides in the Charlotte area, identified in the Complaint as “C.S.”

The complaint further alleges that separately, in April and May 2018, Budi also contacted an FBI online covert employee (OCE) via the internet to purchase a lethal dose of a radioactive substance.  In his communications with the OCE, Budi expressed his intent to use the radioactive substance to kill an unnamed individual.  Budi also instructed the FBI OCE to ship the radioactive substance to an address in Charlotte.  The Complaint alleges that on May 22, 2018, the OCE advised Budi a package containing the radioactive substance was shipped.  On May 31, 2018, the package containing an inert substitute for the radioactive material ordered by Budi was delivered to an address in Charlotte as instructed by Budi.  On June 1, 2018, at approximately 11:15 p.m., Budi was arrested.

Budi is charged with one count of using interstate commerce facilities in the commission of murder-for hire, which carries a maximum prison term of 10 years.

The charges contained in the complaint 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 praised the outstanding work of HSI in Buffalo, New York and Charlotte; the FBI in Charlotte and supporting FBI field offices; the FBI’s Weapons of Mass Destruction Directorate in Washington, D.C.; the U.S. Attorney’s Office for the Western District of New York, and the Department of Justice’s National Security Division.

Assistant U.S. Attorney Casey Arrowood of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution, assisted by Trial Attorney Bridget Behling, of the National Security Division’s Counterterrorism Section.

CHARLOTTE, N.C. – R. Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced today that Dr. Michael Alson Smith, 65, a former Mt. Holly, N.C. family practice physician, appeared in federal court today and pleaded guilty to drug distribution, health care fraud, and aggravated identity theft charges, in connection with the illegal distribution of controlled substances to female patients in exchange for sex acts. 

According to filed plea documents and today’s plea hearing, Dr. Smith was a licensed solo practitioner, who owned and operated Mt. Holly Family Practice, Inc., located in Mount Holly.  In addition to practicing family medicine, Dr. Smith had sought and received approval from the Drug Enforcement Administration (DEA) to operate an office-based opioid treatment program, and treated a large number of patients with pain management and substance abuse issues. 

According to court documents, from at least January 2017 to October 2017, Dr. Smith began to solicit sexual encounters from female patients whom he treated for pain management and/or substance abuse.  In exchange for the encounters, Dr. Smith prescribed to those patients Schedule II, III, and IV controlled substances, including Percocet and Clonazepam (also known as Klonopin), among others.  Dr. Smith admitted in court today that, during the relevant time period, he engaged in sexual encounters with at least seven female patients. Charging documents alleged that Dr. Smith used coercion to induce female patients to engage in sexual acts, including threatening to stop treatment and to stop prescribing medication.

During the same time period, Dr. Smith submitted fraudulent claims to, and received payment from, North Carolina Medicaid and Medicare, for non-existent medical services for the office visits in which he performed and received sex acts from female patients.  Also, as a result of his illegal prescriptions, Dr. Smith caused some of these patients to submit claims to Medicaid and Medicare when they filled the prescriptions at area pharmacies. 

The Honorable Robert J. Conrad, Jr. presided over Dr. Smith’s guilty plea.  Dr. Smith was released on bond following today’s hearing. A sentencing date has not been set.

In making today’s announcement U.S. Attorney Murray commended the work of the DEA, the U.S. Department of Health and Human Services – Office of the Inspector General, the North Carolina State Bureau of Investigation, the North Carolina Medicaid Investigation Division, and the Mt. Holly Police Department for their investigation of this case.

Assistant United States Attorneys Kelli Ferry and Jenny Sugar of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.

 

CHARLOTTE, N.C. – Late yesterday, a federal jury in the Western District of North Carolina convicted Anthony Lamont Caldwell, 48, of Charlotte, of armed bank robbery and firearms charges, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.  U.S. District Judge Max O. Cogburn, Jr. presided over the trial.

U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, and Chief Kerr Putney of the Charlotte Mecklenburg Police Department.

According to filed court documents and evidence presented at trial, Caldwell planned the bank robbery, recruited two teenagers to rob the bank, and served as the getaway car driver.  Court records show that on December 9, 2016, Caldwell’s co-conspirators entered a Wells Fargo Bank branch located at 10210 Couloak Drive in Charlotte.  Both were armed, and as they approached the teller area of the bank they pointed the firearms at the tellers behind the counter and demanded money.  The tellers complied with the bank robbers’ demands and handed Caldwell’s co-conspirators $5,791.60 in cash.  The two men fled the bank in a car driven by Caldwell.  Shortly after the robbery, law enforcement located Caldwell hiding in a wooded area near a bag which contained $5,614 in cash and a GPS tracker from the bank.  They also located the vehicle Caldwell was driving nearby.

According to court documents, Caldwell told law enforcement that he had been carjacked while picking up a pizza, and claimed that he had been forced out of his vehicle at gunpoint by two males and into the backseat of the car.  Witness testimony and trial evidence established that Caldwell had not been carjacked.  Over the course of the investigation, law enforcement recovered from clothing and other items in Caldwell’s vehicle along with the two revolvers used to perpetrate the robbery.

The jury convicted Caldwell of bank robbery conspiracy, bank robbery, possession of a firearm in furtherance of a crime of violence, and possession of a firearm by a convicted felon. According to court records, Caldwell has two previous federal convictions for bank robbery in 1997, and attempted bank robbery in 2004.  Caldwell’s co-conspirators are facing state charges.

Caldwell will remain in custody until his sentencing date, which has not been set.  The bank robbery conspiracy charge carries a maximum prison term of five years; the armed bank robbery charge carries a maximum prison term of 25 years; the charge of possession of a firearm in furtherance of a crime of violence offense carries maximum prison term of five years and the possession of a firearm by a felon charge carries a maximum prison term of 10 years.

The FBI and CMPD investigated the case.  Assistant U.S. Attorneys William Stetzer and William Bozin are in charge of the prosecution.

 

CHARLOTTE, N.C. – Rodolfo Joel Ulloa-Paz, 30, of Mexico, was sentenced today to 247 months in prison on carjacking and firearms offenses, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. 

Wayne Dixie Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Colonel Glenn McNeill, Commander of the North Carolina State Highway Patrol; and Chief Kerr Putney of the Charlotte Mecklenburg Police Department join U.S. Attorney Murray in making today’s announcement.

According to filed court documents and today’s court proceedings, on the evening of August 10, 2016, CMPD officers located a GMC Sierra truck whose passengers were suspected of being involved in multiple shootings.  Court records show that Paz was the driver of the truck, and his co-conspirator, Alan Israel Chavez-Cruz, also an illegal alien, was the front seat passenger.  There were four other passengers in the back of the truck.  Court records show that when CMPD officers attempted to stop the truck, Paz sped off and attempted to flee.  During the flight, the truck was involved in two traffic collisions, however Paz did not stop following either collision. 

According to court records, after the truck became inoperable Paz pulled it into the driveway of a residence on East W.T. Harris Boulevard, in Charlotte.  Paz then exited the truck holding a Mossberg 12-gauge shotgun.  Cruz also got out of the vehicle holding a black 9mm handgun.  The remaining four passengers fled the scene.  Court records show that Paz and Cruz decided to steal a vehicle in order to flee the scene.  Cruz approached the homeowner, R.B., placed his handgun against R.B.’s stomach, and demanded the keys to his nearby 2016 Mazda.  R.B. told Cruz that he did not have the keys on him and Cruz rummaged through R.B.’s pockets but was unable to find the car keys.

Paz then attempted to carjack a 2003 Ford Ranger traveling southbound on W.T. Harris Boulevard.  E.H. was driving the vehicle and L.B. was the front seat passenger of the moving Ford Ranger.  Paz fired his shotgun at the Ford Ranger’s window, and was yelling for E.H. and L.B. to get out of the truck.  Birdshot from the shotgun discharge struck the Ford Ranger’s windshield, causing bodily injury to both victims.  E.H. continued driving the vehicle down W.T. Harris. 

Next, Paz and Cruz approached a parked 2001 Chevrolet Silverado truck.  As he approached, Paz fired his shotgun in the air.  Cruz, with his handgun visible, told the passenger of the vehicle, K.T., to leave and K.T. fled on foot. With Paz as the driver and Cruz in the front passenger seat, the two men fled the scene.

CMPD officers located the two men. After attempting to stop the vehicle several times, the stolen Chevy Silverado drove erratically and in excess of the speed limit.  While traveling down Highway 16, Cruz disassembled his handgun and discarded the parts out of the window and along the side of the road.  The vehicle entered Catawba County, and Paz eventually lost control and struck a power pole that left the truck disabled.

After the collision, Cruz got out of the passenger side of the truck and was arrested immediately.  Paz got out of the truck holding the 12-gauge shotgun, which he pointed at surrounding officers.  Three CMPD officers discharged their weapons, striking Paz who continued to struggle while the officers were trying to arrest him. Ultimately, law enforcement apprehended Paz.

Ulloa-Paz pleaded guilty in November 2017 to conspiracy to commit carjacking, two counts of attempted carjacking, carjacking, and discharging a firearm during, in relation to and in furtherance of a crime of violence.  In March 2018, Cruz was sentenced to 147 months in prison. Both men will be subject to deportation proceedings upon the completion of their federal sentence.

In making today’s announcement, U.S. Attorney Murray thanked the ATF, CMPD, and the North Carolina State Highway Patrol for their investigation of the case.

The prosecution was handled by Special Assistant U.S. Attorney (SAUSA) Erik Lindahl.  Mr. Lindahl is a state prosecutor with the Mecklenburg County District Attorney’s Office, and was assigned to serve as a Special Assistant United States Attorney (SAUSA) with the U.S. Attorney’s Office in Charlotte. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced late yesterday Jason Reid, 30, of Charlotte, to 30 years in prison on child pornography charges, announced the U.S. Attorney’s Office for the Western District of North Carolina.  In addition to the prison term imposed, Judge Conrad also ordered Reid to serve thirty years of supervised release and to register as a sex offender after he is released from prison.

John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation in Charlotte; Chief Kerr Putney, of the Charlotte-Mecklenburg Police Department; and Chief Tim W. Ledford of the Mint Hill Police Department are also making today’s announcement.

According to court documents and court proceedings, in September 2015, law enforcement became aware that an individual with the username “Dodecahedron88” was using the website www.Omegle.com (Omegle), and later the chat application “Kik,” to exchange nude videos and images with a 12-year-old male (Child Victim 1).  The FBI identified the individual as Jason Reid, and on November 20, 2015, FBI agents executed a federal search warrant at Reid’s residence in Charlotte.  According to court records, Reid admitted to using Omegle and Kik to contact Child Victim 1. 

Court records show that law enforcement also discovered text messages between Reid and a 13-year-old female (Child Victim 2).  During these chats, Reid told the minor victim, who has a developmental disorder, that one of his fetishes was young girls.  Reid admitted in plea related documents that he and Child Victim 2 traded sexually explicit images, and that he enticed Child Victim 2 to engage in illegal sexual activity, knowing that she was not above the age of consent.  

Over the course of the investigation, law enforcement recovered multiple text messages, images, and videos containing sexually explicit content between Reid and at least 12 underage male and female victims. 

According to court documents, on several occasions, Reid tricked the underage victims into trading sexually explicit videos and images by posing as a teenage boy.  In some instances, Reid used fake videos of teenage boys to entice the victims to video chat and send him sexually explicit images.

Court records show that Reid also used the Kik application to receive and distribute child pornography, including some of the images he received from the child victims described above, with various Kik chat groups and individuals that were trading child pornography. 

According to court records, a 12-year-old female (identified as Child Victim 12) told law enforcement that after she had traded sexually explicit images with Reid, he had threatened to hurt her if she ever told anyone.   Court records show that Reid traded a picture of this victim to another Kik user.

A forensic analysis of Reid’s computer, external hard drive and cellular phones seized from his residence revealed they contained at least 400 videos and 179 images of child pornography, some of which depicted sadistic, masochistic or other violent sexual conduct, and some of which were of minors under the age of 12. 

In announcing the sentence, Judge Conrad stated that Reid’s case was one of the worst he had seen in 15 years on the bench.

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

The FBI, CMPD and Mint Hill Police investigated the case.  Assistant U.S. Attorney Cortney Randall with the U.S. Attorney’s Office in Charlotte prosecuted the case.

 

 

CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced yesterday Kendrick Brinkley, 29, of Charlotte, to 84 months in prison and three years of supervised release on drug and gun charges, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.

Wayne Dixie Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Chief Kerr Putney of the Charlotte Mecklenburg Police Department join U.S. Attorney Murray in making today’s announcement.

According to filed court documents and court proceedings, on April 13, 2016, while conducting a search of a hotel room at La Casa Inn, located at 7900 Nations Ford Road, in Charlotte, CMPD officers located a revolver and a box of ammunition that belonged to Brinkley.  On February 3, 2017, ATF Task Force officers arrested Brinkley at a residence in Charlotte.  While executing a search warrant at the residence, law enforcement recovered crack cocaine, $2,314 in cash, a loaded firearm, an assault rifle that law enforcement later determined to be stolen, a loaded magazine with a 30-round capacity, and a third firearm, also later determined to be stolen.      

Brinkley has prior felony convictions and is prohibited from possessing a firearm. He pleaded guilty in September 2017 to federal charges of possession of a firearm by a felon and possession with intent to distribute crack cocaine. 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.  All federal sentences are served without the possibility of parole.

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

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

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

 

 

 

CHARLOTTE, N.C. – On Tuesday, May 22, 2018, U.S. District Judge Robert J. Conrad, Jr. sentenced Ronald McKnight, 34, of Charlotte to 20 years in prison and three years of supervised release on bank robbery charges, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. McKnight was also sentenced to one additional year in prison for violating his supervised release on prior robbery convictions.  Judge Conrad also ordered McKnight to pay $3,425.98 as restitution to victims.

U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD).

According to filed court documents and the sentencing hearing, on January 5, 2015, McKnight entered the Fifth Third Bank branch located at 212 South Tryon Street, in Charlotte.  Court records show that McKnight presented a note to the bank teller that read, “Robbery 100 50 20 No Die packs.”  The teller handed McKnight over $1,732 in cash and McKnight left the bank.  On January 9, 2015, McKnight entered the Wells Fargo Bank branch located at 2910 South Boulevard, in Charlotte.  McKnight again handed the teller a note that instructed the teller to give McKnight cash in denominations of $100, $50, and $20, and not to include a dye pack.  According to court records, the teller complied with McKnight’s demands, handed him more than $1,660 in cash, and McKnight fled the location.  Court records indicate that law enforcement arrested McKnight later the same day.

A federal jury convicted McKnight of bank robbery in June 2017.  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.  All federal sentences are served without the possibility of parole.

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

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

Three high-ranking leaders of the Nine Trey Gangsters set of the United Blood Nation (UBN or Bloods) street gang, including the “Godfather” of the organization, who also served as “Chairman” of the UBN, were convicted today of racketeering conspiracy charges. 

 

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina and Special Agent in Charge John Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.

 

Pedro Gutierrez, aka Magoo/Light/Inferno, 45; James Baxton, aka Frank White, 44; and Cynthia Gilmore, aka Cynthia Young/Lady Bynt, 42, Raleigh, North Carolina, were convicted by a federal jury sitting in Charlotte following a two-week trial.

 

“This guilty verdict represents a significant blow against the highest leadership of the Nine Trey Gangsters and the United Blood Nation,” said Acting Assistant Attorney General Cronan. “It reflects the sustained and extensive commitment by federal, state and local law enforcement, including the Criminal Division’s Organized Crime and Gang Section, to disrupt and dismantle this and other prison and street gangs throughout the country.”

 

 “UBN uses violence and intimidation to assert power over our neighborhoods and vicious tactics to bolster the image of an indestructible gang,” said U.S. Attorney Murray.  “Today’s convictions of three high-ranking leaders delivered a blow to that myth, proving that UBN gangsters are no different than other common criminals – they can and will be found and prosecuted for their crimes.  As we continue our efforts to curb gang violence and devastate gang networks in Western North Carolina, we have a message for the UBN and all other criminal organizations: We are coming for you. Person by person, set by set, clique by clique, and leader by leader.  You are in our sights.  Your gang will be dismantled and you will be held accountable.” 

 

“These leaders of the UBN thought they were untouchable, continuing to run their criminal enterprise from inside state prison,” said Special Agent in Charge Strong.  “Today’s guilty verdicts in federal court abruptly put an end to their dirty business.  Do not be mistaken, to anyone who tries to fill the criminal void left by these convictions, you should know, we'll come after you next with the full strength of our federal, local, and state law enforcement partners.”,.

 

According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since its inception as a prison gang in 1993.  UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks.  Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star; and the five-pointed crown.  UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members.  The Nine Trey Gangster set of the UBN refer to themselves as “Billies.”

 

According to court documents and evidence presented at trial, the UBN is governed by a common set of 31 rules, known as “The 31,” which were originally written by the founders of the UBN.  Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders.  Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93.  A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business.  UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.

 

According to court documents and evidence presented at trial, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from “Scrap,” “1-Star General” through “5-Star General,” “Low,” “High,” and, “Godfather.”  Based on evidence introduced during the trial, Gutierrez was a “Godfather” of the Nine Trey Gangsters and had served since 2003 as the “Chairman” of the council that governs the UBN.  Gutierrez, together with James Baxton and Omari Rosero, were “the last ones that God put in power” over the UBN.  As the Godfather of the set, Gutierrez, along with Baxton, conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections. Trial evidence also established that Gutierrez ordered a gang war in North Carolina in 2011 directing that members of the Bloods gang attack and kill members of a renegade gang called Pretty Tony. The war resulted in numerous injuries among inmates and the lockdown of five North Carolina prisons for six months. 

 

Further, trial evidence established that Cynthia Gilmore, who trafficked cocaine, was a local high-ranking officer who routinely traveled from North Carolina to New York to meet with Defendant Gutierrez, acting as his “eyes” and “voice” in the South.  The evidence also showed that Baxton was trafficking heroin within the New York State and prison system. He also was calling and threatening the family members of inmates incarcerated in New York State in an effort to obtain money. 

 

In addition to the three defendants convicted at trial today, 35 defendants have previously pleaded guilty in this investigation, including nine defendants in high-ranking leadership positions:

 

• Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy.  During his plea, Omari Rosero admitted to holding the leadership rank of “High,” and to serving as an acting “Godfather” of the entire UBN gang.
• Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty to racketeering conspiracy.  Rosero admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be “faded straight up.”
• Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy.  According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of “High,” and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine;
• Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics.  According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of “Low,” and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony.  Moreover, Coker was recorded discussing a potential murder of a rival gang member;
• Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine.  According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of “Low”;
• Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud.  According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of “High,” and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards;
• Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy.  According to the factual basis of Harrison’s plea agreement, Harrison admitted to holding the leadership rank of “High,” and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton;
• MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and heroin trafficking, and according to the factual basis of his plea agreement admitted to holding the leadership rank of “Low”; and
• Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime.  According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of “Low.” 

 

The following defendants have also pleaded guilty in this case:

 

• Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;

• Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking;
• Christopher Dentre Hamrick, aka Red Dot, 28, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
• Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy;
• Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
• Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy;
• Joe Tarpeh Johnson, aka JR, Big Pusha, and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
• Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
• Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
• Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy;
• Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy;
• James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy;
• Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
• Anthony Bernard Smith, 25, aka Redd Lion, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy;
• Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence;
• Cedric Surratt, aka Hollywood, 5-Star and Lingo, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud; and
• Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.

 

The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations.  Trial Attorneys Andrew L. Creighton and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.

 

This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF).  OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

CHARLOTTE, N.C. – Three high-ranking leaders of the Nine Trey Gangsters set of the United Blood Nation (UBN or Bloods) street gang, including the “Godfather” of the organization, who also served as “Chairman” of the UBN, were convicted today of racketeering conspiracy charges. 

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina and Special Agent in Charge John Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.

Pedro Gutierrez, aka Magoo/Light/Inferno, 45; James Baxton, aka Frank White, 44; and Cynthia Gilmore, aka Cynthia Young/Lady Bynt, 42, all of Raleigh, North Carolina, were convicted by a federal jury sitting in Charlotte following a two-week trial.

“This guilty verdict represents a significant blow against the highest leadership of the Nine Trey Gangsters and the United Blood Nation,” said Acting Assistant Attorney General Cronan. “It reflects the sustained and extensive commitment by federal, state and local law enforcement, including the Criminal Division’s Organized Crime and Gang Section, to disrupt and dismantle this and other prison and street gangs throughout the country.”

“UBN uses violence and intimidation to assert power over our neighborhoods and vicious tactics to bolster the image of an indestructible gang,” said U.S. Attorney Murray.  “Today’s convictions of three high-ranking leaders delivered a blow to that myth, proving that UBN gangsters are no different than other common criminals – they can and will be found and prosecuted for their crimes.  As we continue our efforts to curb gang violence and devastate gang networks in Western North Carolina, we have a message for the UBN and all other criminal organizations: We are coming for you. Person by person, set by set, clique by clique, and leader by leader.  You are in our sights.  Your gang will be dismantled and you will be held accountable.” 

“These leaders of the UBN thought they were untouchable, continuing to run their criminal enterprise from inside state prison,” said Special Agent in Charge Strong.  “Today’s guilty verdicts in federal court abruptly put an end to their dirty business.  Do not be mistaken, to anyone who tries to fill the criminal void left by these convictions, you should know, we'll come after you next with the full strength of our federal, local, and state law enforcement partners.”,.

According to court documents and evidence presented at trial, the UBN is a violent criminal street gang operating throughout the east coast of the United States since its inception as a prison gang in 1993.  UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks.  Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star; and the five-pointed crown.  UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members.  The Nine Trey Gangster set of the UBN refer to themselves as “Billies.”

According to court documents and evidence presented at trial, the UBN is governed by a common set of 31 rules, known as “The 31,” which were originally written by the founders of the UBN.  Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders.  Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93.  A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business.  UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.

According to court documents and evidence presented at trial, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from “Scrap,” “1-Star General” through “5-Star General,” “Low,” “High,” and, “Godfather.”  Based on evidence introduced during the trial, Gutierrez was a “Godfather” of the Nine Trey Gangsters and had served since 2003 as the “Chairman” of the council that governs the UBN.  Gutierrez, together with James Baxton and Omari Rosero, were “the last ones that God put in power” over the UBN.  As the Godfather of the set, Gutierrez, along with Baxton, conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections. Trial evidence also established that Gutierrez ordered a gang war in North Carolina in 2011 directing that members of the Bloods gang attack and kill members of a renegade gang called Pretty Tony. The war resulted in numerous injuries among inmates and the lockdown of five North Carolina prisons for six months. 

Further, trial evidence established that Cynthia Gilmore, who trafficked cocaine, was a local high-ranking officer who routinely traveled from North Carolina to New York to meet with Defendant Gutierrez, acting as his “eyes” and “voice” in the South.  The evidence also showed that Baxton was trafficking heroin within the New York State and prison system. He also was calling and threatening the family members of inmates incarcerated in New York State in an effort to obtain money. 

In addition to the three defendants convicted at trial today, 35 defendants have previously pleaded guilty in this investigation, including nine defendants in high-ranking leadership positions:

• Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy.  During his plea, Omari Rosero admitted to holding the leadership rank of “High,” and to serving as an acting “Godfather” of the entire UBN gang.
• Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty to racketeering conspiracy.  Rosero admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be “faded straight up.”
• Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy.  According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of “High,” and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine;
• Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics.  According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of “Low,” and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony.  Moreover, Coker was recorded discussing a potential murder of a rival gang member;
• Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine.  According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of “Low”;
• Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud.  According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of “High,” and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards;
• Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy.  According to the factual basis of Harrison’s plea agreement, Harrison admitted to holding the leadership rank of “High,” and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton;
• MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and heroin trafficking, and according to the factual basis of his plea agreement admitted to holding the leadership rank of “Low”; and
• Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime.  According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of “Low.” 

The following defendants have also pleaded guilty in this case:

• Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;

• Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking;
• Christopher Dentre Hamrick, aka Red Dot, 28, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
• Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy;
• Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
• Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy;
• Joe Tarpeh Johnson, aka JR, Big Pusha, and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
• Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
• Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
• Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy;
• Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy;
• James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy;
• Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
• Anthony Bernard Smith, 25, aka Redd Lion, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy;
• Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence;
• Cedric Surratt, aka Hollywood, 5-Star and Lingo, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud; and
• Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.

 

The investigation was conducted by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the IRS Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations.  Trial Attorneys Andrew L. Creighton and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Matt Warren and Christopher Hess for the Western District of North Carolina are prosecuting the case.

This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF).  OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

 

CHARLOTTE, N.C. –  Communities across the United States gather during National Police Week to remember law enforcement officers who made the ultimate sacrifice in the line of duty, to share their stories of courage and sacrifice, and to honor their memory.

“National Police Week is a time to pay tribute to America’s fallen law enforcement offices for their bravery, their service, and their sacrifice.  There is no deed more noble than the willingness to give up one’s own life to serve and protect the lives of others.  Remembering those who died protecting us is our modest way of repaying our debt to them and their families.  It is also our hope that our fallen heroes’ stories and legacy will serve as an inspiration to others and as an example of selfless public service,” said R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.”

In 1962, President Kennedy proclaimed May 15 as National Peace Officers Memorial Day, and the calendar week in which May 15 falls as National Police Week.  Established by a joint resolution of Congress in 1962, National Police Week pays special recognition to those law enforcement officers who have lost their lives in the line of duty for the safety and protection of others.

This year, the names of 360 U.S. law enforcement officers killed in the line of duty will be added to the National Law Enforcement Officers Memorial in Washington, D.C., including the names of 129 officers who made the ultimate sacrifice during 2017, and 231 officers who died earlier in history but whose stories of sacrifice had not been previously documented.  With the addition of the 360 names this year, a total of 21,541 officers’ names are engraved on the Memorial.  The names represent fallen law enforcement officers from all 50 states, the District of Columbia, U.S. territories, federal law enforcement, and military police agencies.

Among those added this year will be:

• Major Jay R. Memmelaar, Jr., Goldsboro Police Department, who died in February 2017.
• Sargent Meggan L. Callahan, North Carolina Department of Public Safety – Division of Prisons, who died in April 2017.
•  Officer Justin Smith, North Carolina Department of Public Safety – Division of Prisons, who died in October 2017. 
• Officer Wendy Shannon, North Carolina Department of Public Safety – Division of Prisons, who died in October 2017.
• Correction Enterprises Manager Veronica Darden, North Carolina Department of Public Safety – Division of Prisons, who died in October 2017. 
   

U.S. Attorney Murray noted that along with remembering the officers who made the ultimate sacrifice, “National Police Week is an opportunity to thank and recognize everyone in the law enforcement community, who bravely stand on the front lines each day.  Like many others before them, these officers took an oath to serve and protect our neighborhoods, our homes, and our loved ones from harm.  And they do it every day, willingly and bravely, despite the dangers and challenges that come with wearing their uniform.  I am thankful for all they do to keep our communities safe and their willingness to answer the ultimate call of duty.” 

On Friday, May 18, 2018, U.S. Attorney Murray will speak at the Peace Officer Memorial Service in Catawba County, sponsored by the Catawba County Fraternal Order of Police Lodge # 26.  The Memorial Service will be held at the Catawba Memorial Park, located at 3060 Highway 70 SE, in Hickory, N.C.

CHARLOTTE, N.C. – U.S. Attorney R. Andrew Murray announced today the distribution of $730,296 in federally-forfeited funds to state and local law enforcement agencies, resulting from a forfeiture action against convicted drug trafficker James Alexander Brown. 

The Justice Department recovered more than $1 million from Brown, of which 80 percent will be shared with 15 law enforcement agencies pursuant to the Department of Justice’s Equitable Sharing Program.

“My office’s criminal and forfeiture prosecutors work hand in hand to put drug traffickers behind bars and to take away the proceeds of their illegal drug trade,” said U.S. Attorney Murray in making today’s announcement.  “Asset forfeiture is a key tool in our efforts to stem the flow of drugs into our neighborhoods. Through the Equitable Sharing Program, we are able to seize drug traffickers’ ill-gotten gains and assist our law enforcement partners with obtaining the resources they need to effectively protect their communities.” 

“Taking away the funds from drug trafficking organizations continues to be one of DEA’s top priorities. Doing so cripples and eventually topples these criminal enterprises. The cooperation with our law enforcement counterparts and the subsequent prosecution by the U.S. Attorney’s Office is crucial to the success of these forfeitures,” said Robert J. Murphy, Special Agent in Charge of the DEA’s Atlanta Field Division regarding the Equitable Sharing Program.

According to court documents, James Alexander Brown was part of a drug distribution ring, and he was responsible for trafficking large amounts of high grade marijuana from California into North Carolina.  Brown stored the marijuana in storage units in Winston Salem, N.C. and distributed it in the Charlotte area.  Over the course of the investigation, state and local law enforcement provided invaluable assistance to DEA including, among other things, surveillance operations, execution of search warrants, and Brown’s apprehension. As a result of the joint investigation, Brown was convicted of conspiracy to possess with intent to distribute marijuana and was sentenced to prison.

As part of his plea agreement, Brown forfeited to the United States a Lexus automobile, a Sea Ray boat he used for drug transactions, and $1,058,400 that Brown had transferred to a bank account in Singapore.  The U.S. District Court ultimately ordered the forfeiture of the funds, the vehicle, and the boat.  Net proceeds of the sale of the vehicle and boat were previously shared with the law enforcement agencies that assisted in the investigation. 

Eighty percent of the more than $1 million in money seized and repatriated from Singapore will now be shared among state and local law enforcement agencies who devoted substantial resources to the investigation, including, but not limited to, the following agencies operating in and around Charlotte: the Pineville Police Department ($381,024); the North Carolina Division of Motor Vehicles ($52,920); the North Carolina Highway Patrol ($42,336); the Charlotte Mecklenburg Police Department ($42,336); the Cornelius Police Department ($42,336); the Huntersville Police Department ($42,336); the Mint Hill Police Department ($42,336); the Monroe Police Department ($42,336); and the Union County Sheriff’s Office ($42,336). 

U.S. Attorney Murray commended the assistance and cooperation of the agencies involved in Brown’s investigation, all of which are identified below, and stated, “Brown was a large-scale drug trafficker, profiting at the expense of our communities.  Now, through sharing, the Justice Department will use Brown’s money to reinvest in law enforcement and safety in those same communities that Brown’s criminal conduct targeted.  My office is committed to using the Equitable Sharing Program to support our state and local law enforcement partners in fulfilling their mission to the people of the Western District. The practice of asset forfeiture, when done right, punishes offenders like Brown and takes the profit out of crime, thus serving as a serious deterrent.”

The asset forfeiture action was handled by Assistant U.S. Attorney Benjamin Bain-Creed.  Assistant U.S. Attorney Dana Washington handled the criminal prosecution.

           

Agency

Sharing Percentage

Amount

15th Circuit Drug Enforcement Unit

3%

$             31,752.00

Arkansas State Police Department

0.50%

$               5,292.00

Charlotte-Mecklenburg Police Department

4%

$             42,336.00

Cornelius Police Department

4%

$             42,336.00

Horry County Police Department

2%

$             21,168.00

Huntersville Police Department

4%

$             42,336.00

Mint Hill Police Department

4%

$             42,336.00

Monroe Police Department

4%

$             42,336.00

N.C. Division of Motor Vehicles

5%

$             52,920.00

N.C. Highway Patrol

4%

$             42,336.00

Pineville Police Department

36%

$           381,024.00

Salisbury Police Department

2%

$             21,168.00

Vernon Police Department

3%

$             31,752.00

Winston-Salem Police Department

0.50%

$               5,292.00

Union County Sheriff’s Department

4%

$             42,336.00

Assets Forfeiture Fund (DEA contribution)

20%

$           211,680.00

TOTAL:

100%

$        1,058,400.00

 

CHARLOTTE, N.C. - Three members of the United Bloods Nation gang (UBN or Bloods) were sentenced today on charges of conspiracy to participate in racketeering activity (RICO) and murder, stemming from the 2014 double-murder of Douglas and Deborah London and the 2013 murder of Kwamne Clyburn, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.  U.S. District Judge Max O. Cogburn, Jr. presided over the sentencing hearings.

John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department join U.S. Attorney Murray in making today’s announcement. 

Judge Cogburn sentenced Randall Hankins, II, 24, of Charlotte, to three consecutive life sentences, following his 2017 jury conviction of RICO conspiracy; murder in aid of racketeering; and use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence, for his role in the murder of Douglas and Deborah London. 

Nana Yaw Adoma, 23, of Charlotte, was sentenced to two consecutive life sentences and 25 years in prison after the jury convicted him of RICO conspiracy; murder in aid of racketeering and use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in death for Clyburn’s murder; assault with a dangerous weapon in aid of racketeering; and use or carry of a firearm in relation to a crime of violence and possession of firearm in furtherance of a crime of violence for his role in the armed robbery of the Londons’ business.

Judge Cogburn ordered Akheem McDonald, 24, of Charlotte, to serve two consecutive life sentences following his jury conviction of RICO conspiracy, murder in aid of racketeering, and use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in death for Clyburn’s murder. 

Judge Cogburn previously sentenced nine others for their involvement in the murders: Jamell Lamon Cureton, Malcolm Jarrel Hartley and Rahkeem Lee McDonald were each sentenced to life in prison; David Lee Fudge was sentenced to 26 years; Ibn Rashaan Kornegay was sentenced to 23 years; Nehemijel Maurice Houston was sentenced to 20 years; and Brianna Johnson, Daquan Lamar Everrett, and Centrilla Shardon Leach were each sentenced to 13 years in prison.

According to court documents, on May 25, 2014, Adoma, Cureton, and Fudge robbed The Mattress Warehouse, a store owned by Douglas and Deborah London. The three were later charged in connection with that robbery.  According to court records, Cureton and other Bloods gang members discussed that Douglas London was the only eye witness that could identify Cureton, and that he needed to be eliminated. Over the next months, the gang members exchanged correspondence and conducted numerous in-person and telephonic gang meetings, during which they discussed and planned the murder of Douglas London. 

On or about October 23, 2014, Johnson drove Hartley to South Carolina, where Hartley shot and killed the couple at their home.  The pair then returned to Charlotte, first stopping at Rahkeem McDonald’s house to dispose of the gun.  Afterwards, Hartley and Johnson returned to Hartley’s apartment, where they met with other gang members to celebrate the couple’s murders.  As a result of carrying out the gang leadership orders, Hartley was “ranked up” or “promoted” to a 2-Star General.  Shortly after the murders, Cureton ordered the gang to remain silent about the Londons’ murders.  Kornegay also conducted a telephone gang meeting with other UBN gang members, during which he directed them to lay low to avoid contact with law enforcement.

Over the course of the investigation into the mattress store robbery and the Londons’ murders, law enforcement determined that Cureton, Adoma, and Ahkeem McDonald were responsible for the August 2013 murder of Kwamne Clyburn, who was killed for “false claiming,” (falsely claiming to be a Bloods member), and because Clyburn failed a “DNA check,” meaning the gang members could not verify Clyburn’s claim to be a Blood. 

In making today’s announcement, U.S. Attorney Murray thanked the FBI for leading the investigation, and commended CMPD and the York County Sheriff’s Office for their invaluable assistance throughout the investigation and prosecution of the case.  Assistant U.S. Attorney Don Gast handled the prosecution.

ASHEVILLE, N.C. – A North Carolina podiatrist and his son are facing federal charges in connection with an unemployment insurance benefits scheme, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.  A criminal bill of information was filed in U.S. District Court in Asheville today, charging Dr. Jerry Gross, 72, and his son, Jason Lee Gross, 51, both of Rutherfordton, N.C., with wire fraud.

Nick S. Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas; Robert Schurmeier, Director of the North Carolina State Bureau of Investigation; and Rafiq Ahmad, Special Agent in Charge of the Department of Labor-Office of the Inspector General, join U.S. Attorney Murray in making today’s announcement.

According to filed court documents, Dr. Jerry Gross owned and operated the Foot & Ankle Center of the Carolinas, P.A. (Foot & Ankle Center), located in Forest City, N.C. Dr. Jerry Gross’s son, Jason Lee Gross, also worked at the Foot & Ankle Center, managing the practice’s business operations, including payroll and personnel decisions.  Filed documents show that, from September 2009 to March 2013, Dr. Jerry Gross and Jason Lee Gross carried out a scheme to defraud the State of North Carolina by placing employees of the Foot & Ankle Center on Unemployment Insurance Benefits (“UI Benefits”) while those employees continued to work at the business in excess of what was permitted by the program eligibility requirements.  According to court records, the scheme enabled Foot & Ankle Center to survive the economic downturn during those years by creating a free labor force.

According to filed court documents, during the relevant time period, Jason Lee Gross laid off, at various times, employees of the Foot & Ankle Center, including himself and Dr. Jerry Gross.  Court records show that Jason Lee Gross made UI Benefits claims on behalf of the laid off employees, including himself and his father.  Jason Lee Gross certified the initial eligibility for UI Benefits of each of the employees, and continued to certify their eligibility on a weekly basis for the UI Benefits they received.  Jason Lee Gross did so despite knowing that at least four of the employees regularly failed to comply with the program eligibility requirements, including by regularly working in excess of the hours allowed by the program. 

Court records show that Dr. Jerry Gross did not file any such certifications, but knew that Jason Lee Gross had placed the employees on unemployment, and was aware that at least four of those employees continued to work on a full-time or near-full-time basis, while the practice continued to generate revenue.  Court documents further show that Dr. Jerry Gross also collected considerable UI Benefits himself, despite deliberately turning a blind eye to whether or not he was complying with the eligibility requirements for the program, when in fact he was not complying. Court records show that the scheme caused the State of North Carolina to pay out at least $149,970 in UI Benefits to laid-off Foot & Ankle center employees that did not meet the eligibility requirements.

The maximum penalty for the wire fraud charge is 20 years in prison and a $1,000,000 fine. Signed plea agreements were also filed today.  Plea hearings have not been set. 

In making today’s announcement U.S. Attorney Murray thanked HSI, SBI, and the Department of Labor for their investigation of the case.

Assistant U.S. Attorney Daniel Bradley of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.

 

ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Richard Arlee Champion, 31, of Atlanta, Georgia, to 262 months in prison, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.  Judge Reidinger also ordered Champion to serve 10 years under court supervision after he is released from prison.   

According to filed court documents and court proceedings, Champion and his codefendant, Marissa Jade Burt, 34, of Whittier, N.C. were involved in a drug conspiracy that trafficked large amounts of methamphetamine to the Eastern Band of Cherokee Indians, and Jackson and Swain Counties.  Court records show that Champion was the main source of supply for Burt and his other for codefendants: Jordan Heath Oocumma, 31, of Cherokee, N.C., John Allen Wise, 39, of Franklin, N.C., Jillian Monike Swimmer, 31, of Cherokee, and Anthony Michael Dealto, 32, of Bryson City, N.C.  According to court records, Burt travelled regularly to Atlanta to pick up the methamphetamine, which she then distributed to her co-conspirators.  A federal jury convicted Champion in January 2018 of conspiracy to distribute and aiding and abetting to possess with intent to distribute.

In sentencing Champion, Judge Reidinger said being a supplier of methamphetamine comes with heavy penalties. 

U.S. Attorney Murray thanked the Drug Enforcement Administration (DEA), the Bureau of Indians Affairs (BIA), the Cherokee-Indian Police Department, the Swain County Sheriff’s Office, and the North Carolina State Highway Patrol for their investigation of the case.

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

STATESVILLE, N.C. – U.S. District Judge Frank D. Whitney has sentenced Jackson Suddreth Tyler, 22, of Troutman, N.C. to 228 months in prison, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.  Judge Whitney also ordered Tyler to serve six years under court supervision after he is released from prison.

U.S. Attorney Murray is joined in making today’s announcement by Wayne Dixie Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division and Sheriff Darren Campbell of the Iredell County Sheriff’s Office.

According to filed court documents and court proceedings, on January 24, 2017, the Iredell County Sheriff’s Office received a 911 call for service at a residence located in Troutman.  Upon arrival at the residence, law enforcement found Tyler and a deceased male who had sustained a gunshot wound.  Law enforcement determined that approximately an hour had passed before the 911 call was made in regards to the shooting. 

According to court records, Tyler told law enforcement he had not shot the victim.  Tyler indicated that the victim had entered the residence armed with a pistol and wearing a mask, and that the victim had shot himself.  Contrary to Tyler’s statement about the victim shooting himself, law enforcement determined that a different firearm was used to kill the deceased. 

While executing a search warrant at the residence, law enforcement determined that Tyler was manufacturing ecstacy pills and firearms.  Law enforcement seized from the residence large capacity magazines and 33 firearms, two of which were stolen and one with an obilerated serial number, gun parts, and 6,051 rounds of ammunition, as well as items used in manufactuing MDMA (ecstacy) pills, and more than two kilograms of MDMA pills.  Law enforcement also located underneth the victim  a firearm and an empty magazine.  Also, according to court records, law enforcement determined that during the delay between the time the deceased was shot and 911 was called, the scene had been disturbed and items were removed from the home. 

Tyler pleaded guilty in October 2017 to possession with intent to distribute MDMA and discharging a firearm during and in furtherance to a drug trafficking crime.

In sentencing Tyler, Judge Whitney said that Tyler was involved in a “deadly combination of criminal events,” noting the dangerousness of guns and drugs.

U.S. Attorney Murray thanked the ATF and the Iredell County Sheriff’s Office for their investigation of the case.

Assistant U.S. Attorney Jennifer Dillon of the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – The Department of Justice today announced that Robert George, a former sergeant with the Hickory Police Department (HPD), has been indicted by a federal grand jury on charges of using excessive force against a female arrestee, and for obstructing justice.

The indictment alleges that on Nov. 11, 2013, George assaulted a female victim, identified in the indictment by the initials C.D., by slamming her face-first to the ground, causing her to suffer bodily injury. The following day, George allegedly wrote a false police report to cover up the offense.

George, 45, of Hickory, North Carolina, was arraigned on these charges in federal court.

An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.

This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Department of Justice Assistant United States Attorney Kimlani Ford and Civil Rights Division Trial Attorney Sanjay Patel.

CHARLOTTE, N.C. – Today, U.S. District Robert J. Conrad, Jr. sentenced Jordan Lee Moore, 31, of Winston Salem, N.C. to 14 months in prison and two years of supervised release on charges of interfering with security screening personnel at Charlotte Douglas International Airport (Charlotte Douglas), announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina

U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department.

According to court documents and today’s sentencing hearing, on March 30, 2017, Moore had two separate altercation incidents involving airport security screening personnel at Charlotte Douglas.  Moore, a then employee of American Airlines, attempted to force his way through the TSA Pre-Check lane, without proper authorization. Court records show that the first incident occurred at approximately 5:25 p.m., during which Moore used threats and racially derogatory terms toward airport security personnel, while they attempted to stop him from advancing through airport security checkpoints.  Moore did not have proper TSA-precheck security designations on his boarding pass.  Because of his conduct, Moore was instructed by airport security personnel and CMPD officers that he could not fly out of Charlotte Douglas Airport and was ordered to leave the airport. Moore used more derogatory terms toward security personnel, before eventually exiting the airport.

According to court records, Moore later returned to Charlotte Douglas Airport that same evening. Around approximately 7:30 p.m., Moore again attempted to pass through a security checkpoint at the airport, when he was approached by an airport security officer who recognized Moore based on information disseminated at the airport stemming from the earlier incident. The security officer asked Moore for his identification and advised Moore he was not permitted to advance through security, because of his previous incident. Court records show that Moore ignored the security officer’s request and proceeded to the baggage screening area. Security officers again told Moore that he was not allowed to return to the airport and asked him to leave.  Moore ignored their orders, used explicit and threatening terms, and continued to proceed through the airport checkpoint. A CMPD officer at the scene then attempted to detain Moore, who refused the officer’s commands and violently resisted arrest.  Moore was eventually arrested and continued acting in a combative nature, even after he was placed in a police car. 

In sentencing Moore, Judge Conrad commented on the importance of respecting airport security personnel, the TSA officers, and maintaining proper decorum at the airport.

Moore pleaded guilty to one count of interference with airport security screening personnel and is currently in federal custody.  Moore will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. 

The FBI and CMPD led the investigation.  Assistant U.S. Attorneys Sanjeev Bhasker and Mike Savage, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

 

CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced today Derek Joseph Parker, 33, of Indian Trail, N.C. to 20 years in federal prison for his role in drug trafficking conspiracy that resulted in a heroin overdose death, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina

Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Chief Kerr Putney of the Charlotte Mecklenburg Police Department; Chief Rob Hunter of the Matthews Police Department; Sheriff Eddie Cathey of the Union County Sheriff’s Office; and Chief J. Bryan Gilliard, Monroe Police Department join U.S. Attorney Murray in making today’s announcement.

According to filed court documents and today’s sentencing hearing, over the course of a seven-month investigation, law enforcement identified Parker as a regional drug trafficker in a Drug Trafficking Organization (DTO) distributing heroin in the greater Charlotte area.  Court records show that on December 30, 2016, Parker sold approximately two grams of heroin for $180 to a male individual, which resulted in an overdose death.  Court records show the transaction occurred in the parking lot of the Microtel Inn, located at 1603 Matthews-Mint Hill Rd., in Matthews, N.C.  The following day, hotel housekeeping found a male unresponsive inside one of the hotel rooms. 

According to court records, the deceased male had died from a heroin overdose.  Law enforcement identified Parker as the person who had sold the heroin to the deceased male, and confirmed the cause of death as a heroin overdose. Subsequent to this overdose death, Parker continued to sell heroin until he was identified as the regional drug trafficker who caused the male’s overdose death.

According to court records, Parker continued to engage in drug trafficking, and sold, on multiple occasions, approximately a total of 2,000 grams of heroin, until he was arrested on July 6, 2017.  When law enforcement arrested Parker they also seized from his residence narcotics (Xanax pills and heroin), drug scales, and a loaded firearm. Filed court documents show that Parker told law enforcement that he learned of the deceased male’s heroin overdose in January 2017, and continued to sell heroin thereafter, until he was arrested.

In sentencing Parker, Judge Conrad commented on the serious nature of our nation’s opioid epidemic. When imposing a 20-year prison sentence, Judge Conrad stated that Parker’s conduct of continuing to sell narcotics after the heroin death occurred was appalling and unacceptable.

Parker 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

DEA, CMPD, the Matthews Police Department, the Union County Sheriff’s Office, and the Monroe Police Department led the investigation.  Assistant U.S. Attorney Sanjeev Bhasker, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has indicted Saundra Torrence, a/k/a Saundra Scales, 61, of Charlotte, for her role in defrauding a Charlotte-based credit union of more than $375,000 in the aftermath of the financial crisis, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. 

U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Special Inspector General Christy Goldsmith Romero, of the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP).

According to allegations contained in the indictment, from 1985 to August 2012, Torrence was the President and Chief Executive Officer (CEO) of First Legacy Community Credit Union (FLCCU), which is headquartered in Charlotte.  In the fall of 2010, FLCCU received $1,000,000 as part of a program under the U.S. Department of Treasury’s Troubled Asset Relief Program (TARP), which allowed the Treasury Department to make investments in certain financial institutions that provided credit and financial services to underserved populations and communities. 

The indictment alleges that Torrence abused her position as FLCCU’s President and CEO by, among other things, making false entries in the books and records of the credit union, misapplying and stealing funds from the credit union, and fraudulently using the identity of at least one third party victim to obtain a loan from FLCCU.  Torrence’s wrongdoing caused FLCCU to suffer significant losses while she personally received more than $110,000 from the misconduct, exposed the credit union to the risk of additional losses, and caused regulatory action against FLCCU.

Specifically, the indictment alleges that, during the relevant time period, Torrence approved the payment of compensation to herself and others without authorization and contrary to the policies of FLCCU. This included compensation for unused sick leave, compensation for the sale of GAP insurance in connection with automobile loans, and other uncategorized compensation. The indictment also alleges that much of this compensation was not reported as taxable income, which caused underreporting and underpayment of federal and state income and/or employment taxes.

The indictment further alleges that Torrence fraudulently obtained a loan from FLCCU in the name of at least one third-party victim, K.H.  In connection with this loan, Torrence falsified documentation and circumvented FLCCU policies and reporting requirements. The indictment also alleges that Torrence improperly transferred funds between and among various third-party accounts at FLCCU and her own accounts at FLCCU. On certain occasions, Torrence improperly transferred the proceeds of loans given by FLCCU to third parties into her own accounts.  To conceal her wrongdoing, Torrence falsified documents and made and caused false entries in the books and records of FLCCU. These false entries caused FLCCU’s reported financial results to be inaccurate.  

Torrence is charged with 13 counts of theft and embezzlement from a financial institution; 19 counts of making or causing false entries; and one count of fraudulent participation. Each of the charged counts carries a maximum penalty of 30 years in prison, a $1 million fine, or both.

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

The investigation of the case was handled by the FBI and SIGTARP.  Assistant United States Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.

 

ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today Roger Darryl Brooks, 49, of Dallas, Georgia, to 100 months in prison and five years of supervised release for trafficking methamphetamine, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina

Wayne Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Sheriff Chris Francis of the Rutherford County Sheriff’s Office join U.S. Attorney Murray in making today’s announcement.

According to filed court documents and court proceedings, Brooks and his codefendant, Tony Lee Stanfield, were involved in a drug conspiracy that trafficked large amounts of methamphetamine to Rutherford County and elsewhere.  Court records show that Brooks was the main source of supply in Georgia, and Stanfield was responsible for delivering the drugs to Western North Carolina. 

Law enforcement arrested Stanfield in January 2017, when he attempted to deliver nearly half a kilogram (464 grams) of 96% pure methamphetamine to Rutherford County.  According to plea-related documents, Brooks was the supplier of methamphetamine that Stanfield was attempting to deliver to an individual in Rutherford County.

Brooks pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine.  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.  Stanfield was previously sentenced to 10 years in prison for his role in the drug conspiracy.   

ATF and the Rutherford County Sheriff’s Office led the investigation.  Assistant U.S. Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.

CHARLOTTE, N.C. – United States Attorney R. Andrew Murray announced today that a Matthews, N.C. man was sentenced to 198 months in prison and five years of supervised release for his role in a drug trafficking conspiracy.  Nestor Javier Martin Fernandez, 37, previously pleaded guilty to possession with intent to distribute methamphetamine and cocaine, and possession of a firearm in furtherance of a drug trafficking crime.

According to filed court documents and court proceedings, on November 12, 2017, law enforcement conducted a traffic stop of the vehicle Fernandez was driving and arrested Fernandez on outstanding warrants.  Over the course of the traffic stop, law enforcement recovered from Fernandez’s vehicle more than 2 kilograms of methamphetamine, cocaine, and two firearms.

In making today’s announcement, U.S. Attorney Murray thanked the Federal Bureau of Investigation (FBI), the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Monroe Police Department, and the Union County Sheriff’s Office for their investigation of the case.  

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

This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF).  OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

CHARLOTTE, N.C. – Today, United States District Judge Max O. Cogburn, Jr. sentenced Boakai Boker, 29, of Charlotte, to 57 months in prison, followed by two years of supervised release, in connection with a stolen identity refund fraud scheme, announced R. Andrew Murray, United States Attorney for the Western District of North Carolina.

U.S. Attorney Murray is joined in making today’s announcement by Reginald DeMatteis, Special Agent in Charge of the U.S. Secret Service, Charlotte Field Office (USSS);  David M. McGinnis, Inspector in Charge of the United States Postal Inspection Service; and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).

According to court documents, trial, evidence, witness testimony, and today’s sentencing hearing, beginning in January 2014, Boker executed a scheme to submit fake tax returns to the IRS, using stolen personal identifying information, including names, dates of birth, and Social Security numbers for dozens of individuals.  For example, according to trial evidence, Boker used the personal information of an individual identified as “E.P.” to file a fake tax return, which resulted in Boker gaining access to more than $40,000 in fraudulent proceeds.  

Court records show that Boker directed the IRS to send the fraudulent refund checks to addresses in Mooresville, N.C. which he controlled.  Boker then deposited the proceeds of the scheme into fraudulent bank accounts to which he had access.  In July 2017, a federal jury convicted Boker of wire fraud, bank fraud, false claims, and aggravated identity theft in connection with the scheme.

U.S. Attorney Murray thanked the Secret Service, USPIS, and IRS-CI for conducting the investigation and the Charlotte-Mecklenburg Police Department for its assistance with this case.

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

For 2018, the IRS, the states and the tax industry joined together to enact new safeguards and take additional actions to combat tax-related identity theft. Among other things, the IRS maintains an identity protection website with information and guidance that can be found at:

https://www.irs.gov/identity-theft-fraud-scams/identity-protection.

 

CHARLOTTE, N.C. –Damarcus Donte Ivey, 36, of Charlotte, was sentenced today by U.S. District Judge Max O. Cogburn, Jr. to life in prison, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.  A federal jury convicted Ivey in April 2017 of Hobbs Act robbery and committing murder while using and possessing a firearm during and in furtherance of the robbery.

U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Wayne Dixie, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department.

According to court documents, witness testimony, evidence presented at Ivey’s trial, and today’s sentencing hearing:

On September 10, 2009, Ivey and Kevin Bishop robbed Club Nikki’s, located at 3001 Little Rock Road, in Charlotte.  Over the course of the robbery, Ivey and Bishop pointed guns at the club’s patrons and staff, ordered them on the floor, and took personal items from the patrons and cash from the club.  Trial evidence showed Ivey take items from the male victim before he fired a shot that killed him.  Ivey and Bishop then fled the scene in a Ford F-150.  Six minutes after the initial 9-1-1 call, a CMPD officer observed Ivey and Bishop exiting I-85 onto Beatties Ford Road.  A chase ensued that ended in a vehicle crash and Ivey and Bishop attempted to flee on foot from CMPD officers.  Both men were apprehended within minutes and were found in possession of proceeds from the robbery.  Inside the Ford F-150, officers located the wallet of one of the club’s patrons and $355 in cash scattered about the floorboard.

Ivey 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. Kevin Bishop was convicted on state charges in 2014 and was given a 16-20 year sentence for his role in the robbery.

In making today’s announcement, U.S. Attorney Murray commended CMPD, the FBI, and ATF for their investigation of the case and thanked the Mecklenburg County District Attorney’s Office for their cooperation.

Assistant U.S. Attorneys Craig Randall and William Bozin of the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. - Today, as the Department of Justice recognizes the 50th Anniversary of the Fair Housing Act, Attorney General Jeff Sessions announced the nationwide rollout of an initiative aimed at increasing awareness and reporting of sexual harassment in housing. The announcement includes an interagency task force between the Department of Housing and Urban Development (HUD) and the Justice Department to combat sexual harassment in housing, an outreach toolkit, and a public awareness campaign. This three-pronged approach will strengthen the Department’s efforts to combat sexual harassment in housing.

“Sexual harassment in housing is illegal, immoral, and unacceptable," said Attorney General Sessions. “It is all too common today, as too many landlords, managers, and their employees attempt to prey on vulnerable women. We will not hesitate to pursue these predators and enforce the law. In October, I ordered a new initiative to bring more of these cases, and we have already won relief for 15 victims. Today we announce three new steps to make the initiative more effective and to win more cases. I want to thank the dedicated and committed professionals in our Civil Rights Division and our partners in the Department of Housing and Urban Development for their hard work in this effort. We will continue to aggressively pursue harassers, because everyone has a right to be safe in their home.”

“A person’s home should be a place of safety and security. Unfortunately, that does not hold true for many individuals, who quietly endure sexual harassment and sexual aggression from their landlords or property managers because they are afraid of losing their homes.  Sexual harassment in housing and lending is both reprehensible and illegal. We are committed to uncovering such violations and prosecuting perpetrators to the fullest extent of the law,” said R. Andrew Murray, U. S. Attorney for the Western District of North Carolina.

“All discrimination stains the very fabric of our nation, but HUD is especially focused on protecting the right of everyone to feel safe and secure in their homes, free from unwanted sexual harassment,” said Secretary Ben Carson. “No person should have to tolerate unwanted sexual advances in order to keep a roof over his or her head. Part of our mission at HUD is to provide safe housing and we will remain diligent in this mission to protect those we serve. I look forward to working with Attorney General Sessions and the Department of Justice as part of this task force to bring an end to this type of discrimination.”

In October 2017, the Justice Department announced an initiative to combat sexual harassment in housing and launched pilot programs in D.C. and the Western District of Virginia. The initiative sought to increase the Department’s efforts to protect women from harassment by landlords, property managers, maintenance workers, security guards, and other employees and representatives of rental property owners. During the pilots, the Department developed and tested ways to better connect both with victims of sexual harassment in housing and with those organizations that victims may turn to first for help – including law enforcement, legal services providers, public housing authorities, sexual assault services providers, and shelters.  The Department also tested certain aspects of the initiative in other jurisdictions, including New Jersey, the Central District of California, Massachusetts, Vermont, and Michigan.

The two pilot programs generated an upswing in harassment reporting to the Department from both D.C. and the Western District of Virginia. In D.C., the Department generated six leads since the October 2017 launch. In Virginia, the Department generated three leads. While the Justice Department recognizes that leads and investigations do not always lead to enforcement actions, the pilot program’s results—when extrapolated across all the U.S. Attorney’s Offices across the country—could lead to hundreds of new reports of sexual harassment in housing across the country.

Because of these promising results, the Department is rolling out three major components to the Initiative.

First, the new HUD-DOJ Task Force to Combat Sexual Harassment in Housing will drive a shared strategy between the Department and HUD for combatting sexual harassment in housing across the country. It will focus on five key areas: continued data sharing and analysis, joint development of training, evaluation of public housing complaint mechanisms, coordination of public outreach and press strategy, and review of federal policies.

Second, the outreach toolkit is designed to leverage the Justice Department’s nationwide network of U.S. Attorney’s Offices. The toolkit provides templates, guidance, and checklists based on pilot program feedback. It ultimately will amplify available enforcement resources and help victims of sexual harassment connect with the Department.

Third, the public awareness campaign has three major components: a partnership package with relevant stakeholders, launch of a social media campaign, and Public Service Announcements (PSAs) run by the Executive Office for U.S. Attorneys. The campaign is specifically designed to raise awareness, and make it easier for victims all over the country to find resources and report harassment.

More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of sexual harassment in housing should call the Department at 1-844-380-6178, send an e-mail to fairhousing@usdoj.gov, or contact HUD at 1-800-669-9777.  If you have information or questions about any other housing discrimination, you can contact the Department at 1-800-896-7743.

 

CHARLOTTE, N.C. – United States Attorney R. Andrew Murray announced today that Divett Lidrell Mays, 46, of Atlanta, Georgia, was sentenced to 18 months in prison for kidnapping his daughter and fleeing to Egypt.  U.S. District Judge Robert J. Conrad, Jr. also sentenced Mays to three years of supervised release after he is released from prison.

John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.

According to filed court documents and court proceedings, on May 26, 2011, Mays picked up his seven-year-old daughter, K.M., from her mother’s Charlotte home for a custodial visit. Mays and K.M.’s mother had agreed that he could take her to Atlanta for the weekend and that he would return K.M. to Charlotte on either May 29 or 30, 2011.  According to court records, Mays did not return K.M. to Charlotte as agreed.  Instead, without the permission or knowledge of K.M.’s mother, Mays purchased plane tickets and flew with K.M. to Egypt. 

Court records show that K.M. and Mays departed the United States on May 30, 2011, and arrived in Egypt on June 1, 2011.  Mays retained K.M in Egypt until December 2014, when she was reunited with her mother through an FBI/U.S. State Department ruse and returned to the United States.  Around May 2017, Egyptian authorities realized that Mays, a U.S. citizen, had no immigration status in Egypt and that he had outstanding charges in the U.S., so they facilitated Mays’ removal to the United States.

According to court records, in order for K.M. to travel from the U.S. to Egypt, she needed a passport, which Mays obtained by fraud.  Over the course of the investigation, it was determined that on August 17, 2010, Mays went to a U.S. Post Office in Fulton County, Georgia, and submitted a signed and notarized two-parent consent form along with the passport application for K.M. The investigation further revealed that the application contained false information and a forged signature for K.M.’s mother on the parental consent form.  The passport was later issued, and Mays used the fraudulently obtained passport to transport K.M. to Egypt.  K.M.’s mother did not give consent for Mays to obtain a passport for K.M.

Mays 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 making today’s announcement, U.S. Attorney Murray commended the FBI for their work on this case.

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

 

ASHEVILLE, N.C. – U.S. Attorney R. Andrew Murray announced today that the former Buncombe County Manager, Wanda Skillington Greene, 66, and her son, Michael Gene Greene, 47, both of Arden, N.C., are facing federal charges related to the misuse of public funds.  A criminal bill of indictment charges Wanda Greene and Michael Greene with conspiracy to embezzle, steal, obtain by fraud or misapply Buncombe County funds and wire fraud offenses. Wanda Greene is also charged with embezzling public funds and aiding and abetting such embezzlement.

John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Director Robert Schurmeier of the North Carolina State Bureau of Investigation (SBI); and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), join U.S. Attorney Murray in making today’s announcement.

According to the indictment, Wanda Greene was appointed as County Manager for Buncombe County (the County) in 1997, and remained in that position until her retirement in June 2017.  Michael Greene began his employment with Buncombe County in 2004, until he resigned in August 2017. 

As County Manager, Wanda Greene was responsible for the administration of all departments of the County’s government under the control of the Board of Commissioners (the Board).  In that role, Wanda Greene had the power to appoint, suspend, and remove all county officers, employees, and agents, and was responsible for directing and supervising the administration of all county offices, departments, boards, commissions and agencies controlled by the Board.  As part of her duties, Wanda Greene was also required to prepare and submit the County’s annual budget and capital program to the Board, and to submit annually to the Board, and make available to the public, a complete report of the finances and administrative activities of the county at the end of the fiscal year.

According to allegations contained in the indictment, from about 2007 to August 12, 2017, Wanda Greene and Michael Greene carried out a conspiracy to embezzle public funds, by misusing their government credit cards, also known as PCards, issued to them by Buncombe County, and by using the PCards of other County employees, to make approximately $200,000 worth of improper purchases.   

The indictment alleges that, on multiple occasions during the relevant time period, Wanda Greene improperly used her government issued PCards to purchase multiple gift cards totaling $21,760 from various retailers and restaurants, including Walmart, Target, Olive Garden, and Cracker Barrel. For example, on or about December 6, 2007, Wanda Greene used two different PCards to purchase 10 separate $500 Walmart gift cards totaling $5,000.  The indictment alleges that Wanda Greene split the purchase of the gift cards onto two different PCards, to avoid exceeding the County’s policy spending limit of $5,000.   Wanda Greene then used the gift cards to buy items for herself and others, including groceries, personal hygiene products, clothing, wine and make-up.  Wanda Greene gave some of the gift cards to other individuals who also used them to make improper purchases.

In addition to using the County’s credit cards to purchase gift cards, Wanda Greene also made personal purchases on her PCard at various retail stores, including purchases totaling $18,256 at Best Buy, $10,718 at Target, and $6,479.03 at TJ Maxx, among others.  Furthermore, the indictment alleges that Wanda Greene used her PCard to pay a total of $15,308 for electronic devices and for service from telecommunications carriers that were personal use items and services.  

According to the indictment, in 2011, Wanda Greene ceased using any County credit cards issued to her, and informed a Buncombe County employee that she was returning the PCards because the records of her use of those cards could be subject to disclosure under North Carolina law.  From that time forward, Wanda Greene allegedly used PCards assigned to subordinate county employees, or directed the subordinate employees to use their PCards to make improper purchases for her, Michael Greene, and other individuals. According to the indictment, Wanda Greene misused the employees’ PCard information to purchase $75,400 in gift cards; to pay for personal use wireless services and wireless devices, with a total cost of $24,160; and to pay for more than $18,257 in goods and services at various retail stores.

To obtain the PCard holders’ credit card information, Wanda Greene required Buncombe County employees to provide her with a photocopy of the front and back of their PCards, which she then used to make the improper purchases.  According to the indictment, Michael Greene also possessed such a photocopy until it was recovered in his County office.

The indictment alleges that, in addition to participating in the misuse of Wanda Greene’s PCards and those of her subordinate employees, Michael Greene used his County PCard to pay for food, wireless services, and goods totaling more $9,100.  Michael Greene’s PCard privileges were revoked in January 2009 following an audit.

Wanda Greene and Michael Greene have been ordered to appear on a summons.  The conspiracy charge carries a maximum prison terms of five years and a $250,000 fine, the federal program fraud charges carry a maximum prison term of 10 years per count and a $250,000 fine, and the wire fraud charges carry a maximum penalty of 20 years in prison per count and a $250,000 fine.

In making today’s announcement U.S. Attorney Murray thanked the FBI, IRS-CI and the SBI for their investigation of this case, and noted that the investigation into allegations of criminal activities within the Buncombe County Government is ongoing.

Assistant United States Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is prosecuting the case.

CHARLOTTE, N.C. – A federal jury has convicted a former Charlotte-area minister, William Todd Coontz, 51, of Fort Lauderdale, Florida, of failure to pay taxes and aiding and assisting in the filing of false tax returns, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. 

U.S. Attorney Murray is joined in making today’s announcement by Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI).

According to filed court documents and evidence presented at trial, from 2010 to 2014, Coontz was the minister of Rock Wealth International Ministries (Rockwealth Ministries), and the author of numerous books on faith and finances, such as “Please Don’t Repo My Car,” and “Breaking the Spirit of Debt.”  Coontz also operated two for-profit companies, Legacy Media and Coontz Investments and Insurance. 

Beginning in at least tax year 2000 and continuing through at least tax year 2014, Coontz filed delinquent U.S. Federal Income Tax Returns, Forms 1040, with the IRS and consistently failed to make timely payments on the taxes he owed, despite receiving multiple letters and late notices from the IRS.    For example, for tax years 2011 through 2013, Coontz filed late tax returns and did not pay the total assessed taxes, resulting in total tax liabilities of more than $326,394 for those years.

Trial evidence established that Coontz also filed false federal income tax returns for tax years 2010 through 2013, which underreported his income.  Specifically, Coontz engaged in a check cashing scheme, involving payments for travel reimbursements for speaking engagements and the sale of books and other products.  For example, during 2010 through 2013, Coontz regularly traveled to speak at various ministries, for which he was paid speaking fees and was reimbursed for his travel expenses. Coontz hid income from the IRS by claiming the travel as a business expense while simultaneously receiving travel reimbursement that he kept as personal income.  In order to conceal the payments, Coontz directed, or caused his travel assistant to direct, the ministries to make reimbursement checks for travel expenses directly payable to “Todd Coontz,” and to send the checks to his personal address, rather than to Rockwealth Ministries – the entity that paid for his travel.  Coontz then cashed these checks rather than deposit them into a bank account. 

Also, in order to boost his income, Coontz told his travel assistant to bill the churches for the cost of a full fare first-class ticket, even though his actual expenses for those tickets was substantially less than the amount billed.  Fraudulent travel invoices were created and submitted to the ministries that falsely purported that Coontz had actually paid the full fare ticket price.  As a result, the travel reimbursement checks sent directly to Coontz were for amounts in excess of the actual travel expenses incurred by Rockwealth Ministry.

According to trial evidence and other court records, during 2010 through 2013, Coontz also directed that other checks, such as payments for speeches and for the purchase of books and other products, be made payable to “Todd Coontz” and sent to his personal address.  In total, Coontz concealed and cashed at least 102 checks for travel reimbursements, speeches, and books and other products, totaling at least $252,037.99 for the relevant time period, causing his total income for the relevant tax years to be underreported on his federal income tax returns.  During 2014, Coontz continued to conceal and cash checks received as payments, cashing at least 32 checks totaling $105,454.90 which were not reflected in his accounting records.

Coontz also underreported his income on his tax returns for tax years 2010 through 2013, by failing to include as income payments made by his corporations and ministry for his personal expenses, including payments for the benefit of his family members, and for meals and entertainment. Contrary to the advice of his Certified Public Accountant about comingling personal and business funds, Coontz spent substantial amounts of business funds to pay for personal expenditures, which were falsely classified as business expenses. These purported business expenses included payments totaling more than $227,700 for clothing purchases, and over $140,000 to pay for meals and entertainment expenses at various restaurants, including more than 400 distinct charges at movie theaters. 

In addition, instead of holding assets in his own name, Coontz utilized residences and luxury vehicles titled in the names of companies he owned and controlled. For example, luxury vehicles purchased by Legacy Media, Coontz Investments and Insurance, and Rockwealth Ministries during 2011 through 2013 included three BMWs, two Ferraris, a Maserati, and a Land Rover, and a Regal 2500 boat, among others.  Coontz treated payments for those items as business expenses, even though some of them were used by family members and there were no records kept about their supposed business use. Additionally, in 2012, Rockwealth Ministries purchased a $1.5 million condominium as a parsonage for Coontz.

Coontz has been released on bond. The failure to pay tax charge carries a maximum prison term of one year and a $100,000 fine, per count. The aiding and assisting in the filing of false tax returns charge carries a maximum prison term of three years and a $250,000 fine, per count.

The investigation was led by IRS-CI.  Assistant U.S. Attorneys Jenny G. Sugar and Dallas Kaplan, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.

STATESVILLE, N.C. – U.S. District Judge Richard L. Voorhees handed down lengthy prison terms to two drug traffickers today involved in separate methamphetamine trafficking conspiracies, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.

Chuck Allen Church, Jr., 41, of Morganton, was sentenced to 240 months, followed by five years of supervised release.  In September 2017, Church pleaded guilty to methamphetamine trafficking conspiracy, possession with intent to distribute methamphetamine, and possession of a firearm by a felon.  According to court records, from 2016 to 2017, Church was part a methamphetamine trafficking ring operating in and around Caldwell County.  Over the course of the investigation into Church, law enforcement seized methamphetamine, digital scales, drug paraphernalia, a sawed-off shotgun, and $15,158 in U.S. currency. Church has prior felony convictions, including Abduction of Child (2010) and Possession of Firearm by Felon (2012 and 2014), and he is prohibited from carrying a firearm.

* * *

In a separate case, Jeffrey Brent Church, 54, of Connelly Springs, N.C., was sentenced to 169 months in prison.  According to court records, from 2014 to 2017, Church was responsible for trafficking methamphetamine in Caldwell and Catawba Counties and elsewhere. Over the course of the investigation, law enforcement recovered narcotics, $9,569 in U.S. currency, stolen handguns and other firearms, including two AR-15 rifles.  In December 2017, Church pleaded guilty to a methamphetamine trafficking conspiracy. In addition to the prison term imposed, Judge Voorhees also ordered Church to serve five years under court supervision upon completion of his prison terms.

The two defendants were charged as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation.  According to court documents, since 2015, more than 200 individuals have been prosecuted as a result of this OCDETF investigation.  Over the course of the investigation, law enforcement have seized more than 20 kilograms of crystal methamphetamine, $500,000 in U.S. currency and other assets, and dozens of firearms. 

OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

In making today’s announcement, U.S. Attorney Murray thanked Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas; Director Robert Schurmeier of the North Carolina State Bureau of Investigation (SBI); Colonel Glenn McNeill, Commander of the North Carolina State Highway Patrol; Sheriff Chris Bowman of the Alexander County Sheriff’s Office; Sheriff Jim Hartley of the Ashe County Sheriff’s Office; Sheriff Alan C. Jones of the Caldwell County Sheriff’s Office; Chief Thurman Whisnant of the Hickory Police Department; Chief Scott Brown of the Lenoir Police Department; and Chief Damon D. Williams of the Mooresville Police Department.

Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution.

 

 

CHARLOTE, N.C. – Briana Shakeyah Johnson, 22, of Concord, N.C., was sentenced today by U.S. District Judge Max O. Cogburn, Jr. to 156 months in prison and 5 years of supervised release on charges of conspiracy to participate in racketeering activity (RICO) and murder in aid of racketeering, for her involvement in the murders of Douglas and Deborah London, announced U.S. Attorney R. Andrew Murray of the Western District of North Carolina.

John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department join U.S. Attorney Murray in making today’s announcement. 

According to filed court documents and court proceedings, Johnson, a/k/a “Breezy B” a/k/a “Breezy V,” was an associate of the Charlotte-area Valentine Blood set of the United Blood Nation gang (UBN or Bloods).  Court documents show that Johnson met UBN gang member Malcolm Jarrell Hartley in April 2014 and became his girlfriend. 

According to court documents, on May 25, 2014, three UBN members, Jamell Lamon Cureton, Nana Yaw Adoma and David Lee Fudge, robbed The Mattress Warehouse, a store owned by Douglas and Deborah London. The three were later charged in connection with that robbery.  According to court records, Cureton and other Bloods gang members discussed that Douglas London was the only eye witness that could identify Cureton, and that he needed to be eliminated. As an associate of the Bloods, Johnson was present at gang meetings during which the Londons’ murder was planned. 

The gang’s leadership authorized Hartley to proceed with the murder, and on October 23, 2014, Johnson drove Hartley to the Londons’ home in Lake Wylie, S.C.  Johnson waited in the car while Hartley shot both victims, and then drove Hartley back to Charlotte, first stopping at Rahkeem McDonald’s house to dispose of the gun.  Johnson and Hartley then returned to Hartley’s apartment where they met with other gang members.  According to filed documents, while at the apartment, Hartley described the victims’ murders and the group celebrated.  After the murders, Hartley was “ranked up” or “promoted” to a 2-Star General for carrying out the leadership’s orders. 

To date, eight other Bloods gang members have been sentenced as a result of this investigation. Jamell Lamon Cureton, and Malcolm Jarrel Hartley were sentenced to life in prison for the double-murder of Douglas and Deborah London.  Cureton received a second life sentence for the 2013 murder of Kwamne Clyburn. Rahkeem Lee McDonald was also sentenced to life in prison for his role in the Londons’ murder.  David Lee Fudge was ordered to serve 26 years in prison. Ibn Rashaan Kornegay was sentenced to 23 years in prison. Nehemijel Maurice Houston was sentenced to 20 years in prison. Daquan Lamar Everrett was sentenced to 13 years in prison, and Centrilla Shardon Leach was ordered to serve 13 years in prison.

Three more defendants previously convicted at trial currently await sentencing:  Randall Hankins, II, Nana Yaw Adoma, and Akheem Tahja McDonald were convicted of racketeering conspiracy charges in October 2017.  Hankins was also convicted of two counts of murder in aid of racketeering and two counts of use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence for his role in the murder of the Londons.  Adoma and Akheem McDonald were each convicted of one count of murder in aid of racketeering and one count of use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in death for Clyburn’s murder.  Adoma was also convicted of one count of assault with a dangerous weapon in aid of racketeering and one count of use or carry of a firearm in relation to a crime of violence and possession of firearm in furtherance of a crime of violence, for his role in the armed robbery of the Londons’ business. 

The investigation was led by the FBI, with the invaluable assistance of CMPD and the York County Sheriff’s Office.  Assistant U.S. Attorney Don Gast is prosecuting the case.

CHARLOTTE, N.C. – A criminal bill of indictment was unsealed today in federal court, charging Nickolas M. Godfrey, 39, of Fort Mill, South Carolina, with securities fraud, wire fraud, and transactional money laundering in connection with a $1 million investment fraud scheme and a related tax evasion scheme, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. 

U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI). 

According to allegations contained in the indictment, from 2012 to at least 2015, Godfrey obtained more than $1 million by engaging in a Ponzi scheme through his company, Coast to Coast Business Funding LLC (Coast to Coast), which purportedly provided short-term cash advances to businesses.  The indictment alleges that Godfrey induced at least 20 victims to invest with Coast to Coast, by falsely representing that the company was successfully generating substantial revenue.  Godfrey maintained a website for Coast to Coast, which also falsely represented that the company was accredited by the Better Business Bureau. To further solicit investments from victims, Godfrey made numerous false representations to victims, including promising returns of as much as 73.5%.

Contrary to promises made to victim investors, Godfrey used victims’ money to pay for personal expenditures and for the expenses of his other businesses, and to make Ponzi-type payments to earlier victims. 

When victims complained about missed payments and demanded more information, Godfrey tried to appease them by creating fake documents, including fake financial statements for Coast to Coast, and a fake list of clients to which Coast to Coast had purportedly provided financing.

In addition to the investment fraud scheme, the indictment alleges that Godfrey engaged in in a tax evasion scheme by evading the payment of tax liabilities assessed by the IRS related to his ownership and operation of two hair salons, Bliss Day Spa & Salon (Bliss) in Pineville, N.C., and Alter Ego Salon & Day Spa (Alter Ego) in Charlotte.  The indictment alleges that Godfrey committed tax evasion by, among other things, failing to pay federal employment taxes that he had withheld from the paychecks of employees at Bliss and Alter Ego, and taking multiple steps to thwart the IRS’ collection efforts. For example, the indictment alleges that Godfrey commingled the amounts withheld from his employees’ paychecks with other business and personal funds, including money obtained from victim investors, and used those funds to pay for personal expenses. Godfrey also lied to IRS employees attempting to collect the unpaid taxes, according to the allegations in the indictment. In addition, as alleged in the indictment, Godfrey filed individual U.S. Federal Income Tax Returns for the years 2009 through 2012 that failed to report accurately the net income he received from his businesses.

Godfrey had his initial appearance today before U.S. Magistrate Judge David Keesler. The securities fraud charge carries a penalty of up to 20 years in prison and a $5 million fine.  The wire fraud charge carries a penalty of up to 20 years in prison and a $250,000 fine.  The transactional money laundering charge carries a penalty of up to 10 years in prison and a fine of up to $250,000 or not more than twice the amount of the criminally derived property involved in the transaction.  The tax evasion charge carries a penalty of five years in prison and a $250,000 fine.

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

The investigation was led by the FBI and IRS-CI. Assistant United States Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case. 

CHARLOTTE, NC - With the deadline for filing income tax returns rapidly approaching, R. Andrew Murray, U.S. Attorney for the Western District of North Carolina, and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), jointly announce recent tax fraud prosecutions and sentencings, and deliver a powerful warning to those who are thinking about breaking the law by committing tax crimes.

“As April 15th nears, tax cheats are put on notice: our office works diligently to investigate and prosecute those who try to evade their federal tax obligations,” said U.S. Attorney Murray.  “Taxes help pay for important services our communities rely on.  Tax cheats steal from the government and increase the burden on honest taxpayers who file their taxes on time and pay the share they owe. Our experienced tax prosecutors and IRS criminal investigators work hand-in-hand to uncover tax fraud and hold tax criminals accountable for their actions.”

“As the 2018 tax filing season comes to an end, special agents of the IRS-Criminal Investigation will continue to work diligently to pursue those individuals and corporations who make deliberate decisions to not comply with the tax laws.  America’s tax system relies heavily on voluntary self-assessments of what tax is owed and when individuals or corporations falsify those self-assessments, the citizens of Western North Carolina, can rest assured our agents in the Charlotte Field Office, along with the U.S. Attorney’s Office, will prosecute them.  Prosecution of these cases supports the overall IRS compliance goals and enhances voluntary compliance,” said Acting Special Agent in Charge Matthew D. Line. 

Tax Preparer Indicted for Tax Fraud

Aminta A. Smith, 31, of Charlotte, made her initial appearance today on federal charges of aiding and assisting in the preparation of false tax returns and filing a false tax return.  The indictment alleges that, between 2012 and 2015, Smith prepared and submitted to the IRS more than 1,300 tax returns, many of which included false information, such as false income and false education expenses, which qualified filing individuals for inflated tax refunds. The indictment further alleges that the Charlotte-area tax return preparer kept a portion of the tax refund as her fee.  For tax years 2011 to 2015, Smith also filed U.S. Individual Income Tax Returns that did not include much of the income she received for preparing tax returns, which resulted in Smith receiving large tax refunds. Smith faces a maximum penalty of three years in prison for each charge of aiding and abetting in the preparation of false tax returns and three years in prison for filing a false tax return. (3:18-cr-107).

Other Tax Prosecutions

In the last year, the U.S. Attorney’s Office, with the assistance of IRS-CI, has investigated and prosecuted numerous individuals for criminal tax violations.  Tax enforcement prosecutions include:

Todd Barry Greenburg (5:17-cr-53).  On March 6, 2018, Greenburg, 46, a resident of Mooresville, N.C. and co-owner of a Charlotte-area car dealership, pleaded guilty to one count of tax evasion.  As part of his guilty plea, Greenburg admitted that, for tax years 2010 through 2015, he attempted to evade a large part of the income tax he owed by: concealing and attempting to conceal from the IRS the nature and extent of his assets and their location; placing funds and properties in the names of others; and making false statements to IRS agents.  He faces a maximum sentence of five years in prison and a $250,000 fine. Greenburg’s sentencing date has not been set.

Peter Gjuraj (5:17-cr-31).  On September 5, 2017, Gjuraj, 50, of Mooresville, was sentenced to eight months in prison.  Gjuraj operated the Blue Parrot, a restaurant in Lake Norman, and concealed significant personal earnings from the IRS.  For tax years 2012 through 2014, the Blue Parrot earned additional gross receipts totaling approximately $2,793,873 that Gjuraj failed to report on his individual income tax returns filed with the IRS. As a result of the unreported gross receipts, Gjuraj had additional taxable income substantially in excess of that reported on his tax years 2012 through 2014. The additional federal tax due on this unreported income was a total of $319,974.92.

Matthew Moretz (5:17-cr-3).  On August 8, 2017, Moretz, 32, of Taylorsville, N.C., and owner of a recycling business, was sentenced to six months in prison.  Court records show that Moretz concealed significant personal earnings from the business from the IRS.  As a result of unreported income of $529,622.44, Moretz had additional tax due and owing of approximately $115,409 from 2010 to 2013.

Priscilla Lydia Turner (1:16-cr-133).  On August 17, 2017, Turner, 36, of Greenville, South Carolina, was sentenced to 24 months in prison and was ordered to pay $204,773 in restitution for her role in a stolen identity refund fraud scheme.  Turner misused her access to a computer system to obtain personal identifying information (PII) of inmates detained at the Greenville County Detention Center.  Turner passed the stolen PII of inmates to her co-conspirators, who used that information to file fraudulent tax returns and to obtain fraudulent tax refunds.  Turner’s co-conspirators were previously sentenced in connection to the tax fraud scheme.  Carmichael Hill was sentenced to 75 months in prison; Reginald Knowles was sentenced to 70 months in prison; and Senita Dill was sentenced to 324 months in prison. 

Quandella Walker (3:17-cr-343).  On December 14, 2017, Walker, 29, of Charlotte, was indicted for aiding and assisting in the filing of false tax returns for others as well as filing false tax returns in her own name.  Through her tax preparation business, Quandella Tax Services, Walker prepared tax returns for clients that contained false income information, to enable her clients to fraudulently qualify for inflated tax refunds.  Walker is also charged filing false tax returns for her own name.

Federal penalties for each count of conviction of tax crimes range from a maximum of one year in prison and a $100,000 fine for failure to file a tax return, false withholding exemptions, and delivering or disclosing false tax documents, to a maximum of 10 years in prison and a $250,000 fine for conspiracy to defraud with respect to false refund claims. Other penalties include a mandatory term of two years in prison and a $250,000 fine for aggravated identity theft charges, three years in prison and a $250,000 fine for obstructing or impeding an investigation and filing or preparing a false tax return, and a maximum of five years in prison and a $250,000 fine for tax evasion, failure to pay taxes, conspiracy to commit a tax offense or conspiracy to defraud.

The U.S. Attorney’s Office and the IRS remind tax payers to exercise caution during tax season to protect themselves against a wide range of tax schemes ranging from identity theft to return preparer fraud. Illegal scams can lead to significant penalties and interest and possible criminal prosecution.  IRS Criminal Investigation works closely with the Department of Justice to shutdown scams and to prosecute the criminals behind them. The IRS has issued its annual “Dirty Dozen” which lists common tax scams that taxpayers may encounter, particularly during filing season.  Taxpayers are urged look out for, and to avoid, the following common schemes:

• Phishing
• Phone Scams
• Identity Theft
• Return Preparer Fraud
• Fake Charities
• Inflated Refund Claims
• Excessive Claims for Business Credits
• Falsely Padding Deductions on Returns
• Falsifying Income To Claim Credits
• Abusive Tax Shelters
• Frivolous Tax Arguments
• Abusive Tax Shelters
• Offshore Tax Avoidance

 

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.

Charlotte, N.C. – A Bosnian Serb residing in North Carolina was sentenced to 18 months in prison today for his criminal conviction of obtaining a Permanent Resident Card (I-551), commonly referred to as a “green card,” by making materially false claims and statements on his initial application for refugee status, which served as the basis for obtaining Lawful Permanent Resident status.

Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina and Deputy Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE) made the announcement.

Milan Trisic, 55, who was residing in Charlotte, North Carolina, was sentenced by Judge Max O. Cogburn Jr. of the Western District of North Carolina.  Trisic previously pleaded guilty on Dec.18, 2017, to possession of unlawfully obtained documents.  Pursuant to an Order issued by Judge Coburn, upon completion of his term of imprisonment, Trisic will be transferred to ICE custody for removal to Bosnia and Herzegovina. 

“Those who wish to live in the United States ought to respect our laws, support our national security, and pursue residency legally and honestly.  Anything less is inexcusable,” said Attorney General Sessions. “The Department of Justice will not hesitate to take action against criminals who seek to come here on the basis of fraud and take advantage of our generous immigration system.  I want to thank our Homeland Security Investigations (HSI) special agents and DOJ attorneys for all of their hard work pursuing justice in this case.”

“Using lies and deceit, Trisic exploited our legal immigration system to enter our country and later to become a permanent resident,” said U.S. Attorney Murray.  “The sentence imposed by the Court is just punishment for Trisic’s blatant disregard for our nation’s immigration laws. My office is committed to protecting the integrity of our legal immigration process and prosecuting those who commit immigration fraud.” 

“The men and women of ICE will continue to pursue those who violate the integrity of our immigration system to hide from the human rights violations they have committed,” said ICE Deputy Director Homan.  “ICE Homeland Security Investigations in Charlotte, supported by ICE’s Human Rights Violators and War Crimes Center, worked for many years to pursue this case and uncover the facts about the human rights violations this individual committed.  We thank our many partners at the Department of Justice for their tireless work in prosecuting this case. With this case and many others like it, the United States has demonstrated that we will not serve as a safe haven for those who commit egregious acts that violate basic human rights.”

According to the admissions made in connection with his plea, Trisic, an ethnic Serb with Bosnian citizenship, is a lawful permanent resident of the United States living in North Carolina.  On Nov. 3, 2016, Trisic possessed a green card that was unlawfully obtained.  In response to questions on his legal permanent resident application, Trisic knowingly concealed his military service in the Bratunac Brigade, a unit in the Army of the Serb Republic; concealed his criminal activity in Bosnia and Herzegovina; and lied about his whereabouts during the war in Bosnia and Herzegovina in the early and mid-1990s.

As part of his plea of guilty, Trisic admitted that he served in the Army of the Serb Republic as a member of the Bratunac Brigade during various tours of duty between April 1992 and January 1996, at a time when Bosnia and Herzegovina was in the midst of a civil war.  Due to its proximity to Serbia, forces both aligned with and from Serbia began a violent ethnic expulsion campaign in 1992 against the non-Serbian population in and around Bratunac.  Trisic admitted that he engaged in various unlawful activities while serving with the Bratunac Brigade, such as the unlawful beating, detention and transportation of Muslim prisoners.  Additionally, Trisic admitted that the Bratunac Brigade, operating primarily in eastern Bosnia and Herzegovina, was one of the military units responsible for the July 1995 Srebrenica massacre that resulted in the deaths of between 7,000 and 8,000 Bosnian Muslim men.

Trisic also admitted that he knowingly lied about his whereabouts during the war in Bosnia and Herzegovina.  In order to obtain refugee status, Trisic falsely claimed that he resided in Serbia during the war, when in fact he actually resided in Bratunac, Bosnia and Herzegovina, where he served as part of the Bratunac Brigade.  Trisic later used his illegally obtained status as a refugee to unlawfully obtain permanent resident status in the United States.

This case is the result of an investigation conducted by ICE’s HSI and supported by the Human Rights Violators and War Crimes Center.  Trial Attorneys Frank G. Rangoussis and Ann Marie E. Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Kenneth Smith of the Western District of North Carolina are prosecuting the case.

 

CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr., sentenced David Michael Shope, 43, of Huntersville, N.C., to 105 months in prison for possession of child pornography, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.  Shope, who is an Oncologist, was also ordered to serve a 15 years under court supervision and to register as a sex offender after he is released from prison.

John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Murray in making today’s announcement.

According to court documents and information introduced at the sentencing hearing, in February 2015 and in September 2015, Shope used peer-to-peer software to transport to an undercover CMPD detective multiple videos that depicted the sexual abuse of children.  According to court records, on September 30, 2015, law enforcement conducted a search of Shope’s residence in Huntersville, seizing multiple electronic devices and an external hard drive. A forensic examination of the seized items revealed that Shope possessed multiple videos containing child pornography, some of which depicted sadomasochistic conduct.  Several videos also involved children under 12. 

According to court records, law enforcement also found, on one of Shopes’ laptops, chats from a public chat room.  The various chats involved Shope posing as a female with a younger daughter who was sexually interested in other females with younger daughters.  Some of the chats included Shope requesting photographs of the other females and their daughters.

Shope pleaded guilty to possession of child pornography in July 2017. 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.  All federal sentences are served without the possibility of parole. 

The FBI and CMPD led the investigation. Assistant U.S. Attorney Kimlani Ford 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. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

CHARLOTTE, N.C. – U.S. Attorney R. Andrew Murray announced today that Montorio Darell Allison, 38, of Concord, N.C. was sentenced to 132 months in prison on drug trafficking charges.  U.S. District Judge Max O. Cogburn, Jr. also ordered Allison to serve 10 years under court supervision after he is released from prison. 

U.S. Attorney Murray is joined in making today’s announcement by Daniel R. Salter, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Gary J. Gacek with the Concord Police Department.

According to filed court documents and today’s sentencing hearing, Allison was a member of a drug trafficking organization (DTO) responsible for trafficking large quantities of cocaine from supply sources in Mexico and Texas, and utilized drug couriers to transport the drugs to Allison and other drug traffickers throughout North Carolina and elsewhere. Court records also show that between March and September 2015, a courier for the DTO delivered five kilograms of cocaine to Hillsborough, N.C.; 15 kilograms of cocaine to Fayetteville, N.C.; and one kilogram of cocaine to Concord, N.C.  After distributing the cocaine, local DTO members returned large sums of bulk currency generated from drug sales.

According to court records, over the course of the investigation into Allison, law enforcement seized cocaine, heroin, other narcotics, 13 empty kilogram wrappers, other drug paraphernalia, and cash. Allison pleaded guilty in June 2017 to one count of conspiracy to distribute and to possess with intent to distribute controlled substances. 

Allison is in federal custody and will be transferred to the custody of Federal Bureau of Prisons to begin serving his sentence.  All federal sentences are served without the possibility of parole.

The DEA led the investigation.  Assistant U.S. Attorney Craig Randall of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

 

CHARLOTTE, N.C. – Ho Shin Lee, 31, of Los Angeles, California, was indicted by a federal grand jury in Charlotte for laundering more than $1.9 million stolen from Appalachian State University, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.  The 14-count indictment was unsealed today, following Lee’s arrest in California.

John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Murray in making today’s announcement.

According to allegations contained in the indictment, on or about November 18, 2016, Lee applied to the Secretary of State of California to register Royce Hub Trading, Inc. as a corporation in California, claiming that the corporation was in the business “general merchandise.”  Lee represented himself to be the Chief Executive Officer, Secretary, and Chief Financial Officer of Royce Hub Trading.  The indictment alleges that on or about November 23, 2016, Lee opened a bank account with a financial institution in Los Angeles in the name of Royce Hub Trading, Inc. Lee claimed to be president of Royce Hub Trading and was the sole account holder.

Court documents indicate that in 2016, Appalachian State University (“Appalachian State”) awarded a contract to Rodgers Builders to build a new health sciences building at the university. On or about December 2, 2016, an employee at Appalachian State received an email from an unidentified individual purporting to be D.M., an employee of Rodgers Builders. The e-mail was sent from accounts@rodgersbuildersinc.com. The legitimate e-mail address for Rodgers Builders was “rodgersbuilders.com.”  The fraudulent e-mail contained a direct deposit form and instructions to change Rodgers Builders’ previously submitted banking information to Lee’s newly opened bank account.

The indictment alleges that the Appalachian State employee changed the payment information as directed by the fraudulent e-mail, and on or about December 8, 2016, a payment of approximately $1,959,925.02 intended for Rodgers Builders by Appalachian State was directed to the bank account controlled by Lee.

According to the indictment, on or about December 12, 2016, Lee received the fraud proceeds, and quickly transferred the funds through a series of financial transactions out of his bank account, knowing that the transactions were designed to conceal the nature, location, source, ownership, and control of the fraud proceeds.

Lee is charged with fourteen counts of money laundering.  The maximum penalty for the each charge is twenty years in prison and a $ 500,000 fine.

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

The FBI investigated the case. Assistant U.S. Attorney Kelli Ferry is in charge of the prosecution.

* **

On January 24, 2018, U.S. Attorney Murray announced that $1,542,442.33 would be distributed to Appalachian State, following successful civil forfeiture proceedings against money seized from bank accounts controlled by the alleged fraudsters who targeted the university.  The full press release can be found at:

/usao-wdnc/pr/appalachian-state-university-receive-15-million-distribution-resulting-us-attorneys

CHARLOTTE, N.C. – An indictment was unsealed today in federal court following the arrest of Xaver Boston, 28, of Charlotte, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney R. Andrew Murray of the Western District of North Carolina, and Special Agent in Charge John Strong of the FBI Charlotte, North Carolina, Field Division. The indictment charges Boston with six counts of sex trafficking, one count of inducing a person to travel in interstate commerce for purposes of prostitution, and two counts of using an interstate facility to promote a prostitution enterprise.

According to the indictment, between 2012 and Spring 2016, and again between Spring 2017 and September 2017, the defendant operated a prostitution enterprise and sex trafficked young women, including one minor girl.  The defendant advertised the women on Backpage.com and collected the prostitution proceeds for his own profit.  He provided the women with drugs, including heroin, to maintain control of their actions, and he used violence as punishment when he suspected they were withholding proceeds from him, lying to him, or not following his directions.

An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.  Each sex trafficking count carries a minimum sentence of 15 years in prison and a maximum sentence of life, as well as mandatory restitution and a $250,000 fine.

The case is being investigated by the FBI in Charlotte and the Charlotte-Mecklenburg Police Department. The case is being prosecuted by Assistant U.S. Attorney Kimlani M. Ford of the Western District of North Carolina and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.

 

CHARLOTTE, N.C. – A grand jury sitting in Charlotte returned a federal indictment charging two brothers for the shooting of a United States Postal Carrier, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.  Rashawn Donnell Williams, 29, and Dion Lamar Williams, 27, both of Charlotte, were charged with conspiracy to murder a federal employee, attempted murder of a federal employee, and discharging a firearm during, in relation to and in furtherance of a crime of violence.  Rashawn Williams was also charged with possession of a firearm by a felon. 

David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) joins U.S. Attorney Murray in making today’s announcement.

“As alleged in the indictment, the two men knowingly and intentionally attempted to kill a U.S. postal carrier while he was performing his official duties.  I want to thank our law enforcement partners for their thorough investigation of this case, which has led to today’s federal charges,” said U.S. Attorney Murray. 

Inspector in Charge McGinnis stated, “Protecting the employees of the United States Postal Service is a top priority for the U.S. Postal Inspection Service. When someone attempts to take the life of one of our employees, we stop at nothing to identify those responsible. We extend our appreciation to all our local, state and federal partners that assisted in the investigation.”

According to allegations contained in the indictment, on August 31, 2017, Rashawn Williams and Dion Williams conspired to kill a U.S. Postal Carrier. The indictment alleges that, as part of the conspiracy, Dion Williams picked up Rashawn Williams at a location on Executive Street in Charlotte.  The two men traveled to the Days Inn located at 4924 Sunset Road in Charlotte, where Rashawn Williams obtained a firearm. The indictment also alleges that the two men then traveled to Archer Avenue in Charlotte, to locate the victim.  The indictment further alleges that Rashawn Williams and Dion Williams attempted to kill the victim while he was delivering mail on his mail route. According to the indictment, Rashawn Williams has a prior criminal conviction and is prohibited from possessing a firearm. 

The two men are currently in custody and will appear in court on the federal charges. The maximum penalty for the charge of conspiracy to murder a federal employee is life in prison.  The charge of attempted murder of a federal employee carries a maximum prison term of 20 years and a $250,000 fine. The discharging of a firearm charge carries a mandatory minimum term of 10 years consecutive to any other count. The felon in possession of a firearm charge carries a maximum prison term of 10 years and a $250,000 fine. 

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

The investigation was led by USPIS.  In making today’s announcement, U.S. Attorney

Murray and Inspector McGinnis thank the FBI, ATF, U.S. Probation Office, the CharlotteMecklenburg Police Department and the Mecklenburg County Sheriff’s Office for their invaluable assistance with this case. 

Assistant U.S. Attorney Jennifer Dillon, of the U.S. Attorney’s office in Charlotte, is prosecuting the case.  

CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced a South Carolina man late yesterday to 24 months in prison, followed by two years of supervised release, in connection with a “synthetic identity” bank fraud scheme, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.  Judge Conrad also ordered Charles Whitlock, Jr., 51, of Rock Hill, S.C. to pay $310,268.51 in restitution. Whitlock pleaded guilty to bank fraud in October, 2017.

David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, join U.S. Attorney Murray in making today’s announcement.

According to filed court documents and court hearings, Whitlock executed a synthetic identity fraud scheme from December 2013 to April 2017, through which he fraudulently obtained more than $251,000 from a financial institution by obtaining credit cards using synthetic identities.  A synthetic identity is a fictitious identity created using a combination of real and fabricated information about people, or sometimes entirely fictitious information about people, including names, social security numbers (SSN), dates of birth (DOB).

Whitlock also used social media to offer so-called “credit repair services,” claiming he could help customers acquire new lines of credit, car loans and better FICO scores, among other things.  Whitlock omitted to disclose that he was engaging in fraudulent activity involving synthetic identities.  

In July 2017, the U.S. Government Accountability Office (USGAO) issued a summary report of a forum convened by the Comptroller General of the United States on the topic of synthetic identity fraud (SIF).  A panel of experts concluded that SIF is a growing problem that poses a threat to “the financial system, government programs and national security.”  The USGAO’s full report is available at https://www.gao.gov/assets/690/686134.pdf

The investigation was led by USPIS and the FBI.  Assistant U.S. Attorneys Thomas O’Malley and Ben Bain-Creed, of the U.S. Attorney’s office in Charlotte, prosecuted the case.

CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced a South Carolina man late yesterday to 24 months in prison, followed by two years of supervised release, in connection with a “synthetic identity” bank fraud scheme, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.  Judge Conrad also ordered Charles Whitlock, Jr., 51, of Rock Hill, S.C. to pay $310,268.51 in restitution. Whitlock pleaded guilty to bank fraud in October, 2017.

David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) and John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, join U.S. Attorney Murray in making today’s announcement.

According to filed court documents and court hearings, Whitlock executed a synthetic identity fraud scheme from December 2013 to April 2017, through which he fraudulently obtained more than $251,000 from a financial institution by obtaining credit cards using synthetic identities.  A synthetic identity is a fictitious identity created using a combination of real and fabricated information about people, or sometimes entirely fictitious information about people, including names, social security numbers (SSN), dates of birth (DOB).

Whitlock also used social media to offer so-called “credit repair services,” claiming he could help customers acquire new lines of credit, car loans and better FICO scores, among other things.  Whitlock omitted to disclose that he was engaging in fraudulent activity involving synthetic identities.  

In July 2017, the U.S. Government Accountability Office (USGAO) issued a summary report of a forum convened by the Comptroller General of the United States on the topic of synthetic identity fraud (SIF).  A panel of experts concluded that SIF is a growing problem that poses a threat to “the financial system, government programs and national security.”  The USGAO’s full report is available at https://www.gao.gov/assets/690/686134.pdf

The investigation was led by USPIS and the FBI.  Assistant U.S. Attorneys Thomas O’Malley and Ben Bain-Creed, of the U.S. Attorney’s office in Charlotte, prosecuted the case.

CHARLOTTE, N.C. – Johnny Allen Hass, Jr., 49, of Charlotte, was sentenced today to 35 years in prison for transportation of child pornography charges, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.  U.S. District Judge Robert J. Conrad, Jr. also ordered Hass to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.

John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Murray in making today’s announcement.

According to court documents and information introduced at the sentencing hearing, on June 28, 2016, Hass used a peer-2-peer network to transport multiple files containing child pornography via the internet to an undercover FBI agent.  During a subsequent search of Hass’s residence in Charlotte, law enforcement seized a thumb drive. Law enforcement also seized a cell phone from Hass.  Forensic analyses of those devices revealed that Hass possessed 78 videos of child pornography, some of which depicted the sadistic and masochistic sexual abuse of prepubescent minors as well as other violent conduct.  

Hass was convicted in Florida in 1987 for Attempted Lewd Assault Upon a Child, and for Aggravated Assault with a Deadly Weapon.  In 1996, Hass was convicted federally for transportation of child pornography and again in 1998 for receipt of child pornography.  He was also convicted in 2015 in Mecklenburg County for a sex offender registry violation. According to the terms of his supervised release for his prior federal convictions, Hass was prohibited from owning a computer, an internet hub, or any device that could access the internet.

Hass pleaded guilty to transportation of child pornography on August 7, 2017. 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.  All federal sentences are served without the possibility of parole. 

The FBI led the investigation. Assistant U.S. 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. – U.S. Attorney R. Andrew Murray announced today that Christopher Michael Partlow, 46, of Bessemer City, N.C. was sentenced to 120 months in prison and five years of supervised release on drug conspiracy charges.  U.S. District Judge Robert J. Conrad, Jr. presided over the sentencing.

John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division; Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas; Chief Tom Ellis of the Bessemer City Police Department; and Chief Robert C. Helton of the Gastonia Police Department join U.S. Attorney Murray in making today’s announcement.

According to court documents and today’s sentencing hearing, from 2015 to 2017, Partlow was involved in a drug conspiracy operating in and around Gaston County, responsible for trafficking large amounts of narcotics.  On January 17, 2017, law enforcement executed a search warrant at Partlow’s residence, seizing heroin, crack cocaine, and two firearms.  Partlow has a prior federal drug trafficking conviction and is prohibited from possessing a firearm.

Partlow pleaded guilty in June 2017 to drug trafficking conspiracy. He is currently in federal custody and will be transferred to custody of the Federal Bureau of Prisons upon designation of a federal facility.  Federal sentences are served without the possibility of parole.

This case stems from an Organized Crime Drug Enforcement Task Force (OCDETF) investigation.  OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

In making today’s announcement U.S. Attorney Murray thanks the Federal Bureau of Investigation, Charlotte Division; ICE’s Homeland Security Investigations in Charlotte; the Bessemer City Police Department; and the Gastonia Police Department for their investigation of the case.

Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.

CHARLOTTE, N.C. – The leader of a drug trafficking ring and two of his associates were sentenced to prison today by U.S. District Judge Robert J. Conrad, Jr., announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.

Anthony Jarbar Pettus, 35, of Gastonia, was sentenced to 168 months in prison and five years of supervised release; James Michael Hardin, 54, of Gastonia, was sentenced to 120 months in prison and five years of supervised release; and Albert Hankerson, 65, of Gastonia, N.C. was sentenced to 72 months in prison and three years of supervised release. 

According to court documents and today’s sentencing hearings, from 2007 to 2017, the defendants operated as drug conspiracy responsible for trafficking between 840 and 2,800 grams of crack cocaine in and around Gaston County.  Pettus was the leader of the drug ring, and Hardin, and Hankerson were couriers.  According to court records, over the course of the conspiracy law enforcement officials seized narcotics, drug paraphernalia, at least 11 firearms and more than $25,000 in cash.              

The defendants were charged as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation.  OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

In making today’s announcement U.S. Attorney Murray thanks the Federal Bureau of Investigation, Charlotte Division; ICE/Homeland Security Investigations; and the Gastonia Police Department for their investigation of the case

Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.

 

CHARLOTTE, N.C. – Larry Allen Elkins, Jr., 31, of Monroe, N.C. appeared before U.S. Magistrate Judge David Keesler yesterday and pleaded guilty to methamphetamine trafficking conspiracy and possession with intent to distribute methamphetamine, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.

According to filed court documents and court proceedings, Elkins was part of a narcotics distribution network operating in Union and Mecklenburg Counties and elsewhere.   To date, more than 14 individuals have been indicted on federal charges in connection with this investigation by the Organized Crime Drug Enforcement Task Force (OCDETF).  The Union County Sheriff’s Office, the Monroe Police Department, the Division of Adult Correction and Juvenile Justice, the FBI and ATF, are among the law enforcement agencies which are task force members.  

OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets. 

Those who have been charged federally or have pleaded guilty to federal charges as part of this OCDETF investigation are:

• Jason Albert Frankenberg, 41, of Matthews, N.C.
• Isaac Patton Brown, 46, of Charlotte.
• Johnathan Mitchell Goodwin, 36, of Wadesboro, N.C.
• Elizabeth Lorraine Lewis, 28, of Pinnacle, N.C.
• Nestor Martin Fernandez, 38, of Charlotte.
• Emilio Mejia, 28, of Charlotte.
• Rodolfo Medina, 47, of Charlotte.
• Jose Javier Reyes, 19, of Charlotte.
• Mauco Contreras, 21, of Charlotte.
• Kevin Eliezer Velasquez Melendez, 18, of Concord, N.C.
• Alejandro Jose Lopez Ceballos, 20, of Charlotte.
• Martha Olivia Placencia Beltran, 48, of Charlotte.
• Edgar Jesus Magana, 24, of Charlotte.
• Brandy Nicole Short, 34, of Gastonia, N.C.

 

According to filed court documents and court proceedings filed in Elkins’s case and related cases, the defendants are part of a drug network responsible for trafficking large amounts of methamphetamine and heroin in North Carolina, including in Union County. Over the course of the investigation, law enforcement seized more than five kilograms of methamphetamine, numerous firearms, and cash drug proceeds.

Assistant U.S. Attorneys Jennifer Dillon and Special Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.

 

CHARLOTTE, N.C. – Shawn Steven Wilson, 33, of China Grove, N.C., was sentenced today to 142 months in prison for enticement of a minor using the internet, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.  In addition to the prison term imposed, U.S. District Judge Robert J. Conrad, Jr. also ordered Wilson to serve a lifetime of supervised release and to register as a sex offender.

U.S. Attorney Murray is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of Charlotte Mecklenburg Police Department.

According to court documents and today’s court proceedings, Wilson responded to an online posting for individuals interested in engaging in sexual contact with a minor.  From August 17 to September 1, 2016, Wilson engaged in multiple communications with an FBI undercover employee posing as the minor’s parent.  During the exchanges, Wilson discussed his interest in engaging in sexual contact with the minor who he believed to be an 11-year-old girl, asked for naked pictures of the minor, and made arrangements to meet her.  Law enforcement arrested Wilson when he arrived to meet the minor at an agreed-upon location for the purpose of engaging in sexual activities.

Wilson pleaded guilty in June 2017 to one count of online enticement of a minor. He is currently in federal custody and will be transferred to custody of the Federal Bureau of Prisons upon designation of a federal facility.  Federal sentences are served without the possibility of parole.

The FBI led the investigation assisted by CMPD.  The U.S. Attorney’s Office prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Office 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.

ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced James Christopher Gann, 36, of Asheville, to 391 months in prison and five years of supervised release on drug trafficking conspiracy and witness intimidation charges, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. 

Nick S. Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas, joins U.S. Attorney Murray in making today’s announcement.

According to filed court documents and today’s sentencing hearing, Gann was convicted in 2007 of conspiracy to distribute methamphetamine and was ordered to serve more than six years in prison.  Upon his release from prison in late 2016 and continuing through February 2017, Gann trafficked more than 22 kilograms of high-purity methamphetamine into North Carolina from a supply source in Oklahoma.  Court records show that Gann recruited his girlfriend and co-defendant, Elizabeth Ann Hollifield, to assist him in the sale of the methamphetamine.

According to court records, during an undercover drug transaction, law enforcement arrested Hollifield, who subsequently agreed to cooperate with the investigation.  According to court records, when Gann became aware of Hollifield’s cooperation with law enforcement, he physically assaulted her on two separate occasions to dissuade her from further interaction with the authorities.

Gann pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine and assault with intent to hinder, delay and prevent communication to law enforcement. 

Hollifield was previously sentenced to 63 months in prison after pleading guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine.  All federal sentences are served without the possibility of parole. 

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

 

CHARLOTTE, N.C. – Stanley Reginald Barron, 37, of Cornelius, N.C. and his co-conspirator, Kimberlie L. Flemings, 49, of Mt. Holly, N.C., were indicted on federal charges in connection with a $1 million bank loan scheme, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.  A third person, Brian Lyles, 46, formerly of Jersey City, New Jersey, was also charged separately for his role in the conspiracy. 

U.S. Attorney Murray is joined in making today’s announcement by David M. McGinnis, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS), and Steven Perez, Special Agent in Charge of the Northeast Region of the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG).

According to the charging documents and court proceedings, from at least 2012 to 2015, Barron, Flemings, Lyles and others executed a fraudulent scheme to obtain automobile and personal loans from at least 19 financial institutions. The co-conspirators submitted dozens of fraudulent loan applications in their names, and the names of at least 30 other individuals, to at least 19 banks and credit unions.  As a result of the fraudulent scheme, the indictment alleges that the three defendants obtained more than $1 million in fraudulent loan proceeds.

According to allegations contained in the charging documents, Barron, Flemings and Lyles submitted the fraudulent loan applications for individuals they had recruited, falsely stating the loans would be used to purchase automobiles, among other things.  Many of the recruited loan applicants had negative information in their credit histories which made getting legitimate loans difficult. Because of this, Barron and others fraudulently “cleaned” or “repaired” the credit reports of certain loan applicants to improve the chances of obtaining a loan from the banks and credit unions. For example, the indictment alleges, Barron and Flemings filed police reports online in the names of certain loan applicants, falsely claiming that the loan applicants were victims of identity theft and that the negative items on their credit reports were due to the identity theft.  Barron, Flemings and others also submitted falsified supporting documents with the loan applications, including false employment and income information.

The indictment alleges that to further execute the scheme, Barron and his co-conspirators created fake automobile dealerships that purported to be the sellers of vehicles purchased with the fraudulent loans. They also set up bank accounts, websites, and addresses associated with these fake automobile dealerships and created fictitious purchase orders which were submitted to the financial institutions as part of the loan application. 

According to allegations contained in court documents, Barron, Flemings and Lyles deposited the fraudulently-obtained checks from the financial institutions into accounts Barron controlled. After keeping a portion of the fraudulent loan proceeds, Barron distributed the rest to his co-conspirators. In this manner, Barron and others obtained more than 25 checks, totaling more than $1 million, from at least 12 financial institutions.

Court documents allege that after Barron and others obtained the proceeds from the fraudulent loans, the majority of the loans defaulted, causing losses to the impacted financial institutions.  To cover up the fraud, Barron and others made false statements to the defrauded banks and credit unions that attempted to collect on the debts, including that borrowers had been the victims of identity theft and that they had not authorized the loans.

Baron, Flemings and Lyles are charged with one count of conspiracy to commit wire and bank fraud.  Barron and Flemings are also each charged with wire fraud affecting financial institutions and nine counts of financial institution fraud.  Barron also faces a money laundering conspiracy charge.

An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty.  The wire and bank fraud conspiracy charge carries a maximum sentence of 30 years in prison and a $1,000,000 fine. The wire fraud affecting financial institutions charge carries a maximum prison term of 20 years in prison and a $250,000 fine.  Each of the nine financial institution fraud charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine. The money laundering conspiracy charge carries a maximum penalty of 10 years in prison and a $250,000 Fine.

USPIS and FHFA-OIG led the investigation.  Assistant U.S. Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte is in charge of the prosecution. 

Thirty-five members and associates of the Nine Trey Gangsters set of the United Blood Nation (UBN) street gang, including a “Godfather” as well as other high-ranking leaders of the organization, have pleaded guilty to racketeering conspiracy and related charges in North Carolina, including drug trafficking, wire fraud, firearm possession, and the use of a firearm in furtherance of a crime of violence and drug trafficking.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, and Special Agent in Charge John Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.

“The pleas announced today are part of an extensive investigation by a broad array of federal, state, and local law enforcement agencies—including the Criminal Division’s Organized Crime and Gang Section—whose goal has been to disrupt and dismantle the Nine Trey Gangsters, a dangerous set of the United Blood Nation street gang,” said Acting Assistant Attorney General Cronan.  “By targeting the high-ranking individuals who were directing the gang’s activities—from locations up and down the eastern United States, both within prisons and in our communities—today’s pleas constitute a substantial step towards the gang’s eradication.”

“When my office indicted 83 Bloods gang members and senior leaders, the goal was to deliver a major blow to this organized criminal enterprise responsible for raging turf wars, rampant drug distribution and bloody gang violence,” said U.S. Attorney Murray.  “We’ve made significant progress toward that goal but the work is far from over.  Communities across Western North Carolina know firsthand the trail of violence and devastation gangs leave behind.  We have a duty to protect the public from gang violence and to bring relief to neighborhoods afflicted by gang activity. Working with our law enforcement partners we will continue to combine our efforts and resources to keep our communities safe and to protect our children from violent street gangs.”  

“The assaults, the robberies, the drug deals, each and every crime committed by these ruthless gang members was a blow to the safety of our communities,” said Special Agent in Charge Strong. “The guilty pleas by these suspects are the next step in securing justice for every innocent person who was impacted by the violent actions of these gangs members.”

Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy.  According to the factual basis of Rosero’s plea agreement, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from “Scrap,” “1-Star General” through “5-Star General,” “Low,” “High,” and, “Godfather.”  During his plea, Omari Rosero admitted to holding the leadership rank of “High,” and to serving as an acting “Godfather” of the entire UBN gang.  According to a recorded jail call, Omari Rosero admitted to being, together with Pedro Gutierrez, aka Magoo, and James Baxton, aka Frank White, “the last ones that God put in power” over the UBN.  Rosero conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections.

Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty today to racketeering conspiracy.  Rosero, who has a tattoo of “Mrs. Uno B” on her chest, referring to Omari Rosero, maintained a Facebook account through which private messages were sent from Omari Rosero to other Bloods leaders.  According to the factual basis of her plea agreement, Porsha Rosero further admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be “faded straight up.”

In addition to Omari and Porsha Rosero, seven other defendants with high-ranking leadership positions have previously pleaded guilty in this investigation:

• Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy.  According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of “High,” and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine;
• Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics.  According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of “Low,” and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony.  Moreover, according to a court-approved wiretap, Coker was recorded discussing a potential murder of a rival gang member;
• Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine.  According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of “Low”;
• Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud.  According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of “High,” and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards;
• Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy.  According to the factual basis of Harrison’s plea agreement, Harrison admitted to holding the leadership rank of “High,” and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton;
• MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and heroin trafficking, and according to the factual basis of his plea agreement admitted to holding the leadership rank of “Low”; and
• Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime.  According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of “Low.” 

Furthermore, the following defendants have also pleaded guilty in this case:

• Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;
• Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking;
• Christopher Dentre Hamrick, aka Red Dot, 28, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
• Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy;
• Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
• Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy;
• Joe Tarpeh Johnson, aka JR, Big Pusha, and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
• Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
• Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
• Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy;
• Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy;
• James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy;
• Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
• Anthony Bernard Smith, 25, aka Redd Lion, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy;
• Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence;
• Cedric Surratt, aka Hollywood, aka 5-Star, aka Lingo, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud; and
• Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.

According to admissions made in connection with the plea agreements, the UBN is a violent criminal street gang operating throughout the east coast of the United States since its inception as a prison gang in 1993.  UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks.  Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star; and the five-pointed crown.  UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members.  The Nine Trey Gangster set of the UBN refer to themselves as “Billies.”

Furthermore, the plea agreements note that the UBN is governed by a common set of 31 rules, known as “The 31,” which were originally written by the founders of the UBN.  Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders.  Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93.  A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business.  UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.

The convictions are the result of a joint effort by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Internal Revenue Service Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations.  The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Western District of North Carolina.

This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF).  OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

 

WASHINGTON – Thirty-five members and associates of the Nine Trey Gangsters set of the United Blood Nation (UBN) street gang, including a “Godfather” as well as other high-ranking leaders of the organization, have pleaded guilty to racketeering conspiracy and related charges in North Carolina, including drug trafficking, wire fraud, firearm possession, and the use of a firearm in furtherance of a crime of violence and drug trafficking.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina, and Special Agent in Charge John Strong of the FBI Charlotte, North Carolina Field Division, made the announcement.

“The pleas announced today are part of an extensive investigation by a broad array of federal, state, and local law enforcement agencies—including the Criminal Division’s Organized Crime and Gang Section—whose goal has been to disrupt and dismantle the Nine Trey Gangsters, a dangerous set of the United Blood Nation street gang,” said Acting Assistant Attorney General Cronan.  “By targeting the high-ranking individuals who were directing the gang’s activities—from locations up and down the eastern United States, both within prisons and in our communities—today’s pleas constitute a substantial step towards the gang’s eradication.”

“When my office indicted 83 Bloods gang members and senior leaders, the goal was to deliver a major blow to this organized criminal enterprise responsible for raging turf wars, rampant drug distribution and bloody gang violence,” said U.S. Attorney Murray.  “We’ve made significant progress toward that goal but the work is far from over.  Communities across Western North Carolina know firsthand the trail of violence and devastation gangs leave behind.  We have a duty to protect the public from gang violence and to bring relief to neighborhoods afflicted by gang activity. Working with our law enforcement partners we will continue to combine our efforts and resources to keep our communities safe and to protect our children from violent street gangs.”  

“The assaults, the robberies, the drug deals, each and every crime committed by these ruthless gang members was a blow to the safety of our communities,” said Special Agent in Charge Strong. “The guilty pleas by these suspects are the next step in securing justice for every innocent person who was impacted by the violent actions of this gang’s members.”

Omari Rosero, aka Uno B, 41, of Elmira, New York, pleaded guilty to racketeering conspiracy.  According to the factual basis of Rosero’s plea agreement, the Nine Trey Gangsters’ leadership proceeds in rank, from lowest to highest, from “Scrap,” “1-Star General” through “5-Star General,” “Low,” “High,” and, “Godfather.”  During his plea, Omari Rosero admitted to holding the leadership rank of “High,” and to serving as an acting “Godfather” of the entire UBN gang.  According to a recorded jail call, Omari Rosero admitted to being, together with Pedro Gutierrez, aka Magoo, and James Baxton, aka Frank White, “the last ones that God put in power” over the UBN.  Rosero conducted gang business and participated in the distribution of gang dues while incarcerated in the New York State Department of Corrections.

Porsha Talina Rosero, aka Lady Uno B, 35, of Syracuse, New York, pleaded guilty today to racketeering conspiracy.  Rosero, who has a tattoo of “Mrs. Uno B” on her chest, referring to Omari Rosero, maintained a Facebook account through which private messages were sent from Omari Rosero to other Bloods leaders.  According to the factual basis of her plea agreement, Porsha Rosero further admitted to participating in the distribution of gang dues, and to participating in a phone call during which Omari Rosero stated that a suspected cooperator would be “faded straight up.”

In addition to Omari and Porsha Rosero, seven other defendants with high-ranking leadership positions have previously pleaded guilty in this investigation:

• Montraya Antwain Atkinson, aka Hardbody, 31, of Raleigh, North Carolina, pleaded guilty to racketeering conspiracy.  According to the factual basis of his plea agreement, Atkinson admitted to holding the leadership rank of “High,” and admitted to possessing marijuana and cocaine with intent to distribute, and to purchasing and selling powder cocaine;
• Adrian Nayron Coker, aka Gotti, 28, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy and three counts of possession with intent to distribute narcotics.  According to the factual basis of his plea agreement, Coker admitted to holding the leadership rank of “Low,” and to possessing a stolen firearm and ammunition, despite having previously been convicted of a felony.  Moreover, according to a court-approved wiretap, Coker was recorded discussing a potential murder of a rival gang member;
• Quincy Delone Haynes, aka Black Montana, 39, of Lawndale, North Carolina, pleaded guilty to racketeering conspiracy and three counts of trafficking cocaine.  According to the factual basis of this plea agreement, Haynes admitted to holding the leadership rank of “Low”;
• Barrington Audley Lattibeaudiere, aka Bandana and Bobby Seale, 31, of Fort Lauderdale, Florida, pleaded guilty to racketeering conspiracy and conspiracy to commit wire fraud.  According to the factual basis of his plea agreement, Lattibeaudiere admitted to holding the leadership rank of “High,” and coordinating the transmission of hundreds of dollars of UBN gang dues to Gutierrez and Baxton. Lattibeaudiere further admitted to participating in a scheme to make and attempt to make over $64,000 in purchases using fraudulent credit and gift cards;
• Bianca Kiashie Harrison, aka Lady Gunz, 28, of Midway Park, North Carolina, pleaded guilty to racketeering conspiracy.  According to the factual basis of Harrison’s plea agreement, Harrison admitted to holding the leadership rank of “High,” and to participating, at facilities within the New York Department of Corrections, in gang leadership meetings with alleged UBN Godfathers Gutierrez and Baxton;
• MyQuan Lamar Nelson, aka Dripz, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and heroin trafficking, and according to the factual basis of his plea agreement admitted to holding the leadership rank of “Low”; and
• Tywlain Wilson, aka 5 Alive, 25, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy, possession with intent to distribute marijuana, and firearm possession in furtherance of a drug trafficking crime.  According to the factual basis of his plea agreement, Wilson admitted to holding the leadership rank of “Low.” 

Furthermore, the following defendants have also pleaded guilty in this case:

• Destinee Danyell Blakeney, aka Lady Rude, 23, of Morven, North Carolina, pleaded guilty to racketeering conspiracy;
• Brandon Khalil Covington, aka Blokka, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm in furtherance of drug trafficking;
• Christopher Dentre Hamrick, aka Red Dot, 28, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
• Anthony ONeil Harrison, aka Ant, 20, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Delonte Maurice Hicks, aka BBB Shooter and Black, 29, of Bennettsville, South Carolina, pleaded guilty to racketeering conspiracy;
• Raheam Shumar Hopper, aka Bone, 24, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
• Muhammad John Jackson, aka Picasso, 33, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Terrence Thomas Johnsom, aka Sypher, 41, of Durham, North Carolina, pleaded guilty to racketeering conspiracy;
• Joe Tarpeh Johnson, aka JR, Big Pusha, and Kutthroat, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
• Latif Nakia Antoine Johnson, aka Billy Solo, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Rashad Monte King, aka Billy Kilo Montana, 26, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• David Matthew Lowe, aka Gucci, 26, of Shelby, North Carolina, pleaded guilty to racketeering conspiracy;
• Charles Kenyon Lytle, aka Kam, 40, of Concord, North Carolina, pleaded guilty to racketeering conspiracy and to possession of a firearm by a convicted felon;
• Brandon Theodore Manning, aka Billy B, 29, of Columbia, South Carolina, pleaded guilty to racketeering conspiracy;
• Isaac Nabah McIntosh, aka Mac, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• D’Angelo De’Mara McNeil, aka Dutch, 27, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Kolawole Olalekan Omotosho, aka Rugged Red, 19, of Jacksonville, North Carolina, pleaded guilty to racketeering conspiracy;
• James Brandin Pegues, 31, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Deshawn Deonta Peterkin, aka Proo, 29, of Wallace, South Carolina, pleaded guilty to racketeering conspiracy;
• Austin Demontry Potts, aka Big Tek and B-Tek, 24, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Rashad Sattar, 20, of Lauderdale Lakes, Florida, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud;
• Anthony Bernard Smith, 25, aka Redd Lion, of Gastonia, North Carolina, pleaded guilty to racketeering conspiracy;
• Isaiah Devon Stallworth, aka Zay and Juice, 25, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to use of a firearm in furtherance of a crime of violence;
• Cedric Surratt, aka Hollywood, aka 5-Star, aka Lingo, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy;
• Lavon Christopher Turner, aka Hungry, 28, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy and to conspiracy to commit wire fraud; and
• Jesse James Watkins, aka Showtime, 34, of Charlotte, North Carolina, pleaded guilty to racketeering conspiracy.

According to admissions made in connection with the plea agreements, the UBN is a violent criminal street gang operating throughout the east coast of the United States since its inception as a prison gang in 1993.  UBN members are often identified by their use of the color red, and can also often be identified by common tattoos or burn marks.  Examples include: a three-circle pattern, usually burned onto the upper arm, known as a “dog paw”; the acronym “M.O.B.,” which stands for “Member of Bloods”; the words “damu,” or “eastside”; the number five; the five-pointed star; and the five-pointed crown.  UBN members have distinct hand signs and written codes, which are used to identify other members and rival gang members.  The Nine Trey Gangster set of the UBN refer to themselves as “Billies.”

Furthermore, the plea agreements note that the UBN is governed by a common set of 31 rules, known as “The 31,” which were originally written by the founders of the UBN.  Members of the UBN are expected to conduct themselves and their illegal activity according to rules and regulations set by their leaders.  Prominent among these is a requirement to pay monthly dues to the organization, often in the amounts of $31 or $93.  A percentage of these funds are transferred to incarcerated UBN leadership in New York; these funds also are used locally to conduct gang business.  UBN gang dues are derived from illegal activity performed by subordinate UBN members including narcotics trafficking, robberies, wire fraud, and bank fraud, among other forms of illegal racketeering activities.
 
The convictions are the result of a joint effort by the FBI; the Charlotte Mecklenburg Police Department; the Shelby Police Department; the Cleveland County Sheriff’s Office; the Gastonia Police Department; the North Carolina State Highway Patrol; the Mecklenburg County Sheriff’s Office; the North Carolina Division of Adult Correction and Juvenile Justice; the North Carolina Department of Motor Vehicles; the U.S. Federal Probation; the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Internal Revenue Service Criminal Investigation; the U.S. Postal Inspection Service; the U.S. Army Criminal Investigation Command; and the New York Department of Corrections and Community Supervision, Office of Special Investigations.
 
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF).  OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.