Western District of North Carolina

CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced yesterday a South Carolina to 53 months in prison on possession of a firearm by a felon charge, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Charles Traywick Randolph, 27, of Columbia, S.C, was also ordered to serve two years in supervised release after he is released from prison. 

According to the filed court documents and statements made in court, on April 8, 2015, law enforcement responded to suspicious person call at the Baymont Inn, located in Charlotte.  When law enforcement arrived, they made contact with Randolph, who was wearing a backpack on his back, and determined he had an outstanding arrest warrant.  Law enforcement searched Randolph’s backpack and recovered a Zastava 7.62x39 caliber semiautomatic assault rifle and a high capacity magazine loaded with 30 rounds of hollow tip 7.62 ammunition.  Randolph has a prior felony conviction and is prohibited from possessing a firearm.     

The investigation was handled by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charlotte Mecklenburg Police Department. Assistant U.S. Attorney Robert Gleason prosecuted the case.

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            In separate cases, three men were also sentenced yesterday on felon in possession of a firearm charges.

           Roger Emanuel Reid, 39, of Charlotte, was sentenced to 51 months in prison and three years of supervised release.  On January 14, 2015, law enforcement executed a search warrant at Reid’s residence.  During the execution of the search warrant, Reid pointed a pistol at the first officer who entered the residence, but then immediately dropped the firearm and surrendered to law enforcement.  Reid has a prior state drug conviction and is prohibited from possessing a firearm.

           Thurman Armani Hill, 23, of Charlotte, was sentenced to 32 months in prison and two years of supervised release.  On September 11, 2015, law enforcement conducted a traffic stop of the vehicle Hill was driving in connection with a drug trafficking investigation.  During the traffic stop, law enforcement located a large bag of marijuana on the floorboard area of the front passenger seat of Hill’s vehicle.  Law enforcement also seized from inside the vehicle a firearm, approximately 100 grams of marijuana, digital scales, 72 Xanax pills and $1,885 in cash.  Hill’s prior conviction prohibits him from possessing a firearm.

            Shamel Malik Dove, 22, of Charlotte, was sentenced to 23 months in prison and three of supervised release.  According to court records, on August 12, 2015, law enforcement arrested Dove on outstanding warrants for a probation violation stemming from a robbery conviction.  Over the course of the arrest, law enforcement seized a firearm, located between the driver’s seat and the center console of Dove’s vehicle.  Dove’s prior conviction prohibits him from possessing a firearm.

            In making today’s announcement, U.S. Attorney Rose thanked ATF and CMPD for handling the investigations.  Assistant U.S. Attorney Taylor Phillips was in charge of Reid’s prosecution and Assistant U.S. Attorney Lambert Guinn prosecuted Hill and Dove’s cases.

CHARLOTTE, N.C. – United States Attorney Jill Westmoreland Rose announced today that a federal grand jury sitting in Charlotte returned yesterday a criminal indictment against Shira Elizabeth Mattocks, aka Shira Elizabeth Raman, 27, of Cherokee, N.C., for kidnapping her three children and fleeing to Mexico.  Mattocks was first charged by a criminal complaint filed in the Western District of North Carolina on June 20, 2016, and she was arrested the same month upon returning to the United States. 

John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief James Dike Sneed of the Cherokee Indian Police Department join U.S. Attorney Rose in making today’s announcement.

According to allegations contained in the criminal complaint and the bill of indictment, Mattocks was involved in ongoing custody disputes with the fathers of her three young children, identified in court documents as E.A., J.O. and S.O.As alleged in court documents, sometime after November 14, 2014, Mattocks kidnapped E.A., J.O. and S.O., and fled the United States with the intent to obstruct the lawful exercise of the fathers’ parental rights.Law enforcement located Mattocks in Mexico and with the assistance and cooperation of the Mexican authorities Mattocks was deported back to the United States.On June 22, 2016, Mattocks was taken into custody upon her arrival at Hartfield-Jackson Atlanta International airport.

In making today’s announcement U.S. Attorney Rose said, “As alleged in the indictment, Mattocks abducted her three young children and fled to another country, where she hid for more than a year and a half.Rather than deal with pending custody issues, Mattocks chose to run, causing significant distress to the children’s fathers and potentially exposing the young victims to a great deal of psychological harm.Thanks to the diligent efforts of our law enforcement partners, the children have safely returned to the United States to resume a normal childhood and Mattocks will face the consequences of her actions.”

“The FBI is uniquely positioned to investigate cases involving charges related to international parental kidnapping.  Through our Legal Attaché offices covering more than 200 countries, the FBI can work directly with other law enforcement agencies to bring justice to children whose parents try to take the law into their own hands,” said FBI’s Special Agent in Charge Strong.    

Mattocks is currently in federal custody.  Her arraignment has been scheduled for July 27, 2016, at 9:40 a.m. before U.S. Magistrate Judge Dennis Howell in Asheville.  Mattocks is charged with three counts of international parental kidnapping.  Each charge carries a maximum term of three years in prison. 

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

In making today’s announcement, U.S. Attorney Rose commended the FBI and the Cherokee Indian Police Department for their investigation of the case, and thanked LEGAT Mexico City, Guadalajara Sub-office, participating officers with the Instituto Nacional de Migración and La Policía Federal for their invaluable assistance.

Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville is prosecuting the case.

CHARLOTTE, N.C. –  A federal jury in Charlotte has convicted the leader and co-conspirator of a health care fraud scheme that fraudulently billed Medicaid for more than $10 million in false claims, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  Cynthia Teresa Harlan, 48, of Charlotte, and Claude Bernard McCrae, 38, of Hamlet, N.C., were convicted of one count of health care fraud conspiracy following a four-day trial.  Co-defendant Tyree Craig Jones, 38, of Charlotte, pleaded guilty to one count of health care fraud conspiracy on the fourth day of trial.  Harlan was also convicted of three counts of making false statements relating to heath care matters, three counts of aggravated identity theft, and one count of obstruction of a health care fraud investigation.  Chief U.S. District Judge Frank D. Whitney presided over the trial.

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

According to evidence admitted at trial, witness testimony and other information contained in filed court documents:

Between October 2012 and August 2013, Harlan used a network of accomplices, including Jones and McCrae, to carry out an extensive health care fraud scheme involving the fraudulent submission of fake reimbursement claims to Medicaid for services that were never actually provided to beneficiaries.  Harlan owned and operated Heartland Consulting and Marketing, Inc., a Charlotte-area company, purportedly specializing in the operation of mental health companies and Medicaid reimbursement.  Harlan recruited a team of individuals that included mental health practitioners, note writers, patient recruiters, mental and behavioral health services providers and medical billers, and directed them to fabricate the necessary paperwork used to support the fraudulent claims billed to Medicaid.  The fabricated paperwork included the names and beneficiary information of Medicaid recipients, fabricated intake packets, non-existent mental health diagnoses and made-up treatment plans and fake dates of service.  It also included fake notes describing therapy services that never occurred.  All of this information was organized in a manner to make it appear that the companies and clinicians involved in the scheme had provided legitimate therapy beneficiaries, contrary to the truth.  The patient files were intended to deceive Medicaid auditors in case there was an inquiry about the accuracy of the fake claims. 

Jones and McCrae were the co-owners of two outpatient mental and behavioral health services companies, Kings of Carolina Care 1, Inc. (Carolina Care 1), and Esteem Family Life Center, LLC (Esteem), both located in Rockingham, N.C.  The two men partnered with Harlan and others to submit false reimbursement claims to Medicaid, claiming that the two entities provided mental and behavioral health services to the Medicaid recipients, when, in reality no services were provided at all.  According to court records, Jones and McCrae, through Carolina Care 1, attempted to obtain from Medicaid over $5 million in fraudulent reimbursement claims and received over $1.3 million from Medicaid for the fraudulent claims. 

Evidence at trial demonstrated that Harlan, Jones and McRae accomplished some of the fraud by misappropriating the Medicaid identification number of doctor.  This doctor had never agreed to be part of Carolina Care 1, yet the group claimed that this doctor had provided over $2.3 million in therapy services to Medicaid recipients in just one year.  Additionally, evidence presented at trial demonstrated that the false claims submitted by Carolina Care 1 indicated that Carolina Care 1 allegedly serviced over 500 clients in a single day.

Trial evidence also established that Harlan misused the names and Medicaid identification numbers of hundreds of Medicaid beneficiaries, including A.H., B.H. and M.H., in order to accomplish the scheme.  According to the mothers of A.H. and M.H., who testified at trial, their children did not have mental health issues and never received any therapy services from any company.  Harlan received over $400,000 for her role in the scheme.  When Harlan became aware that she was being investigated for Medicaid fraud, Harlan directed some of her co-conspirators to destroy records as well as incriminating emails and text messages relevant to the scheme for the purpose of obstructing the investigation. 

“Harlan and her extensive network of fraudsters and cheats repeatedly cheated North Carolina’s Medicaid program of money intended to pay for medical services of those in real need.  The U.S. Attorney’s Office will continue to ferret out health care fraud and hold accountable those who cheat important government programs and steal taxpayers’ dollars,” said U.S. Attorney Rose.

“Medicaid fraud deprives much-needed services to poor and disabled North Carolinians and increases health care costs for everyone.  The people trusted with the resources to care for others should not use that access to defraud the healthcare system.  The FBI will work tirelessly to ensure federal funding is spent in an appropriate and legal manner,” said FBI’s Special Agent in Charge Strong. 

To date, the following individuals have been prosecuted federally in connection with this health care fraud conspiracy:

• Aliya Boss was previously sentenced to 44 months in prison, three years supervised release and was ordered to pay $ 1,135,302.27 in restitution. Boss filed reimbursement claims to Medicaid fraudulently claiming that she had provided mental health and behavioral health services to beneficiaries.

• Alexander Bass and Torrey Darnell Moton were previously sentenced to 32 and 25 months in prison, respectively, three years of supervised release and were ordered to pay $370,372.37 as restitution.Bass and Moton owned United Rehabilitation Services (URS), in Erwin, N.C., and filed reimbursement claims to Medicaid fraudulently claiming that URS provided mental health and behavioral health services to beneficiaries.

• Sakeenah Davis and Kino Williams were previously sentenced to 42 and 35 months in prison, respectively, three years supervised release and were ordered to pay $ 506,124.00 in restition.  Davis and Williams owned New Choices Youth and Family Services, in Charlotte, North Carolina, and filed reimbursement claims to Medicaid fraudulently claiming that URS provided mental health and behavioral health services to beneficiaries.

• Jacqueline Ford was previously sentenced to 21 months in prison and three years supervised release and was ordered to pay $442,679.92 restitution.  Ford fabricated notes to support the false claims submitted by Carolina Care 1, URS and other companies.

• Zaria Humphries was previously sentenced to 24 months in prison and three years supervised release and was ordered to pay $222,037 in restitution.  Humphries submitted false claims through her company Life Impact Solutions.

• Tanisha Melvin was sentenced to 33 months in prison, three years of supervised release and was ordered to pay $392,159.81 in restitution.Melvin was responsible for creating fake patient records for the conspiracy.

• LaChanda Clotiel Parks, also responsible for generating fake patient paperwork, was sentenced to 28 months in prison followed by three years of supervised release, and was ordered to pay $352,565.69 in restitution for her role in the conspiracy.

• Dr. Wanda Webb was sentenced two years probation and ordered to pay $79,338.74 in restitution.  Webb also submitted fraudulent claims through her company, Cornerstone Counseling and Consulting.

• D’Marcus White, also responsible for generating fake patient paperwork, was previously sentenced to two years probation and ordered to pay $543,366.64 in restitution.

• Jason Adam Townsend is also facing health care fraud conspiracy and aggravated identity theft charges, for submitting fraudulent claims through his medical billing services company, Townhall Enterprises, LLC, located in Raeford, N.C.

McCrae is currently released on bond.  Jones was remanded to federal custody on July 14, 2016, and Harlan remains in federal custody.  A sentencing date for the defendants has not been set yet.

The health care fraud conspiracy charge carries a maximum prison term of 10 years.  The maximum prison term for making false statements relating to health care matters is five years per count. The maximum penalty for obstruction of a health care fraud investigation offense carries a maximum prison term of five years and the aggravated identity theft charge carries a mandatory prison term of two years per count, consecutive to any other term of imprisonment.

The investigation was handled by the FBI with assistance from the North Carolina Medicaid Investigations Division. In making today’s announcement, U.S. Attorney Rose also thanked the Rockingham Police Department and the Richmond County Sheriff’s Office for their assistance at trial.  The United States is being represented by Assistant U.S. Attorneys Kelli Ferry and Daniel Ryan, of the U.S. Attorney’s Office in Charlotte.

The investigation is the work of the Western District’s joint Health Care Fraud Task Force.  The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing  of  all  whistle  blower  complaints,  and  the  creation  of  investigative  teams  so  that individual agencies may focus their unique areas of expertise on investigations.  The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.

If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at HHSTips@oig.hhs.gov.  To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.

Two U.S. citizens and a Canadian citizen have pleaded guilty for their roles in a $9 million “sweepstakes fraud” scheme to defraud hundreds of U.S. residents, many of them elderly, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.

Jeffrey Robert Bonner, 37, of Sacramento, California; Cody Trevor Burgsteiner, 33, of Houston; and Darra Lee Shephard, 57, of Calgary, Alberta, pleaded guilty this week before U.S. Magistrate Judge David Keesler of the Western District of North Carolina to various counts of conspiracy to commit wire fraud and mail fraud, wire fraud, conspiracy to commit money laundering and international money laundering, all in connection with a Costa Rican telemarketing fraud scheme.  Sentencing dates have not been set.  

As part of their guilty pleas, Bonner, Burgsteiner and Shephard each admitted that from approximately 2007 through November 2012, they worked in a call center located in Costa Rica, which Bonner owned, where they placed telephone calls to U.S. residents, falsely informing them that they had won a substantial cash prize in a “sweepstakes.”  The victims, many of whom were elderly, were told that in order to receive the prize, they had to pay for a purported “refundable insurance fee,” the defendants admitted.  Bonner, Burgsteiner and Shephard admitted that once they received the money, they contacted the victims again to tell them that their prize amount had increased, due to either a clerical error or because other winners had been disqualified.  The victims were then told to send additional money to pay for new purported fees, duties and insurance to receive the now larger sweepstakes prize, the defendants admitted.  The defendants further admitted that they and their co-conspirators continued their attempts to collect additional money from the victims until an individual either ran out of money or discovered the fraudulent nature of the scheme.  To mask that they were calling from Costa Rica, the conspirators utilized voice over internet protocol (VoIP) phones that displayed a 202 area code, giving the false impression that they were calling from Washington, D.C., they admitted.  According to admissions made in connections with their pleas, the defendants and their co-conspirators often falsely claimed that they were calling on behalf of a U.S. federal agency to lure victims into a false sense of security.

Bonner, Burgsteiner, Shephard and their co-conspirators were responsible for causing approximately $9 million in losses to hundreds of U.S. citizens. 

The U.S. Postal Inspection Service, FBI, Internal Revenue Service-Criminal Investigation, Federal Trade Commission and Department of Homeland Security investigated the case, and the Criminal Division’s Fraud Section supervised the investigation.  Senior Litigation Counsel Patrick Donley and Trial Attorneys William Bowne and Gustav Eyler of the Fraud Section are prosecuting the case.  

CHARLOTTE, N.C. B  Brandon Daniel Enright, 29, of Charlotte, was sentenced today to 97 months in prison for possession of child pornography, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  U.S. District Judge Robert J. Conrad, Jr. presided over today’s hearing, and ordered Enright also to serve ten years of supervised release and to register as a sex offender.  

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 Rose in making today’s announcement.

According to court documents and information introduced at the sentencing hearing, on or about October 20, 2013, Enright shared child pornography online with an undercover agent using a peer-2-peer network.  During a subsequent search of Enright’s residence in Charlotte, law enforcement seized a computer and two external hard drives.  Forensic analyses of those devices revealed that Enright possessed 251 videos of child pornography, depicting prepubescent minors engaging in sexual acts. 

Enright pleaded guilty in September 2015 to one count of possession of child pornography.  He is currently in custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.  All federal sentences are served without the possibility of parole. 

U.S. Attorney Rose thanked the FBI and CMPD for their investigation of this case. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.

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

CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. sentenced yesterday a Charlotte man to 15 years in prison for a federal firearms violation, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  Jesmene Lockhart, 26, was also ordered to serve three years under supervised release after he is released from prison. 

According to the filed court documents and statements made in court, on September 27, 2014, law enforcement officers responding to a 911 call approached Lockhart’s vehicle, which was parked near Marlow Avenue in Charlotte.  The officers seized from the driver-side floorboard a pistol loaded with a 31 round magazine and one bullet in the chamber.  Officers also recovered from the pocket of the driver’s side door a fully loaded 10 capacity magazine.  Court records show that Lockhart has a prior offense and is prohibited from possessing a handgun.   He pleaded guilty in July 2015 to one count of possession of a firearm by a convicted felon.  Court records indicate that Lockhart was convicted in 2006 of conspiracy to commit armed robbery and robbery with a dangerous weapon and at sentencing he qualified as an armed career criminal.

The investigation was handled by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charlotte Mecklenburg Police Department. Assistant U.S. Attorney Jennifer Dillon prosecuted the case.

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In two separate cases, Judge Conrad also sentenced two Charlotte men on federal gun charges.  Laquan Marcell Wilson, 37, and Michael Lamar Perry, 29, were sentenced to 84 months and 46 months in prison and three years of supervised release, respectively.  They each pleaded guilty to one count of possession of a firearm by a convicted felon.  Perry also pleaded guilty to one count of possession with intent to distribute marijuana.

According to court documents and court proceedings, on June 23, 2014, CMPD officers arrived at an apartment complex located at the intersection of Milton Road and Barrington Drive, in Charlotte. The officers approached Wilson, who was standing with a group of people in an area that is recognized by law enforcement as an open air drug market.  According to court records, officers recovered from Wilson a handgun, which was tucked into his waistband, and illegal substances, including crack cocaine and marijuana cigarettes.   Court records show that Wilson has a prior offense and is prohibited from possessing a handgun.  

Court documents filed in Perry’s case show that on September 11, 2013, CMPD officers arrived at a residence located on Lexington Circle, in Charlotte, in response to complaint regarding drug activity.  As the officers approached the residence, they observed Perry through the open front door, reaching into a kitchen cabinet that contained what appeared to be marijuana.  Officers entered the residence and while executing a search warrant they seized drugs, over $10,000 in cash and a revolver and ammunition which belonged to Perry.  Court records show that Perry has a prior felony conviction and is prohibited from possessing a firearm.

At sentencing, both Wilson and Perry received sentencing enhancements for possession of a firearm in connection with another felony offense.

ATF and CMPD handled Wilson’s investigation.  The Drug Enforcement Administration (DEA) and CMPD investigated Perry’s case.  Assistant U.S. Attorney William Miller prosecuted both cases.

CHARLOTTE, N.C. –William Albert Ulmer, aka “Bill Ulmer,” 49, of West Dickinson, North Dakota, was sentenced today to three years in prison for traveling with a stolen passport and aggravated identity theft charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Robert J. Conrad, Jr. also sentenced Ulmer to three years of supervised release after he is released from prison.

Thomas Haycraft, Acting Special Agent in Charge of the Washington Field Office, Diplomatic Security Service, U.S. Department of State, joins U.S. Attorney Rose in making todays’ announcement.

According to filed court documents and today’s sentencing hearing, from about March 2009 to about December 23, 2010, Ulmer stole and used his brother’s passport, Wayne Jacob Ulmer, Jr. to travel between the United States and Costa Rica.  Court records show that Ulmer used his brother’s passport to fly from Norfolk, Virginia, to San Jose, Costa Rica on March 11, 2009, where he resided for approximately 21 months.  According to court records, at the time Ulmer used his brother’s passport to fly to Costa Rica, he was facing state charges in North Carolina related to a worthless check scheme.  Court records show that Ulmer flew out of the United States in March 2009, failing to appear to a court hearing related to the pending state charges, scheduled for April 15, 2009, in Dare County Criminal Superior Court.     

Ulmer used his brother’s passport again for his return trip to the United States.  According to court records, Ulmer left Costa Rica in December 2010, around the time Costa Rican authorities began to investigate the disappearance of Ms. Barbara Strunkova, Ulmer’s live-in girlfriend at the time.  According to court records, Ulmer landed at Charlotte Douglas International Airport on December 23, 2010, and presented his brother’s stolen passport to U.S. Customs officials, entering the United States under his brother’s name.  After clearing U.S. Customs, Ulmer then used the stolen passport again to continue his air travel to his final destination in Norfolk, Virginia.

Ulmer pleaded guilty in September 2015 to one count of possession of identification document with intent to defraud and one count of aggravated identity theft.  Ulmer 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 Rose thanked the U.S. Department of State’s Diplomatic Security Service for handling the investigation and the Kill Devil Hills Police Department for their assistance with this case.

Assistant U.S. Attorney Thomas O’Malley, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

ASHEVILLE, N.C. – Kimberly Michelle Bishop, the former director of Macon County’s Board of Elections was sentenced late yesterday to six months in prison for embezzling public funds, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  Bishop, 44, of Franklin, N.C., was also ordered to serve three years of supervised release, the first six months of which to be served under home detention, and to pay $68,705.26 as restitution.

U.S. Attorney Rose is joined by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Tom Ammons, Assistant Special Agent in Charge of the North Carolina State Bureau of Investigation (SBI) in making today’s announcement.

“Bishop abused the trust placed in her by the public.  As a director on the Board of Elections, Bishop stole public money to enrich herself and her lifestyle.  She is now a federally convicted felon, a title she earned through her greed and theft.  Federal laws are very effective in addressing this type of corruption - let this be a message to other elected officials who may seek to violate the public’s trust through illegal activity,” said U.S. Attorney Rose.

“This was a complex investigation that took teamwork, from both the SBI and FBI, to accomplish a positive outcome.  We have built a strong relationship with the FBI, and enjoy the partnership developed with investigating public corruption cases.   Our goal for this investigation was to ensure that justice was served so the community knew this type of behavior by a leader within the county would not be tolerated,” said Assistant Special Agent in Charge Ammons.

According to information contained in filed plea documents and the sentencing hearing, from about 2002 to January 2014, Bishop served as director of the Board of Elections (BOE) for Macon County.  In that capacity, Bishop had access to BOE’s expense budget and was authorized to initiate check requests to pay for BOE-related services.  Beginning in about June 2013 and continuing through January 2014, court records show that Bishop submitted check request forms and caused checks to be issued to four individuals to supposedly pay for their work on behalf of BOE.  BOE had not, in fact, approved these four individuals as BOE workers and they were not on the county’s payroll. 

Bishop has admitted in court that in order to cash these checks, on some occasions she forged the endorsement signature of the payee and signed her own name on the back of the checks, then cashed them at local financial institutions.  On other occasions, court records show that two of the named payees would sign their names as endorsers, cash the checks and split the money with the defendant.  In total, Bishop’s embezzlement scheme caused Macon County to issue checks for over $68,000.  Bishop pleaded guilty in February 2016 to one count of federal program fraud.

In making today’s announcement U.S. Attorney Rose thanked the FBI and the SBI for their investigation of this case which is ongoing.  The prosecution was handled by Assistant United States Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville. 

ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today the former operator of two companies located in Franklin, N.C. to 135 months in prison on federal securities fraud and money laundering charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  Barry Carlton Taylor, 64, of Franklin, was also ordered to serve three years of supervised release and to pay nearly $2.2 million as restitution to his victim investors.

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

“Taylor was a con artist who used lies and deception to convince his victims to hand over their hard-earned money.  Contrary to his lofty promises of huge profits, Taylor’s investors – some of whom were elderly – sustained grave financial losses and may never be able to recover financially after falling prey to this scammer’s investment scheme,” said U.S. Attorney Rose.

According to filed court documents and today’s sentencing hearing, Taylor operated two limited liability companies in Franklin, N.C., “OTC Investments, LLC” (OTC) and “Forex Currency Trade Advisors, LLC” (FCTA).  Beginning in August 2011, Taylor induced 18 victims to invest approximately $2.5 million by falsely telling them he was an expert in the foreign currency exchange market (FOREX) and that their investments would be pooled into trading accounts which he would manage and use to invest in FOREX.  Court records show that Taylor also falsely told his victims that he had created a computer software system that could track the FOREX market, which enabled him to make investments that generated very high rates of return, as much as 2.5% per month. 

According to court records, even though Taylor opened and maintained FOREX trading accounts in the names of his two companies neither company was registered as a commodity pool operator.  Court records also show that Taylor deposited the funds he solicited from the individual victim investors into these trading accounts, but he then withdrew more than half of the victims’ money and lost the rest due to trading losses, fees and commissions.  According to court records, by April 2015 there was very little or no investor funds remaining in the trading accounts controlled by Taylor. 

Taylor concealed the losses by sending the victims false monthly statements, which represented that the investors’ principal was intact and that they were realizing profits as promised.  Court records indicate that Taylor used money from other principal investors to make Ponzi-style payments to investors who had asked Taylor to withdraw their profits on their promised returns.  Taylor also convinced some of the investors to reinvest their “commissions” rather than accepting payments, court documents show.  

In furtherance of the fraudulent scheme, filed documents indicate that Taylor used a number of lies to further induce investors and to conceal the fraud.  For example, in January 2015, Taylor sent his victims fraudulent emails claiming that he had halted FOREX trading due to events involving the Swiss National bank.  In another example, court records show that Taylor created a fictitious entity and a fictitious person in order to send lulling emails to calm his investors, and later lied to victims telling them he was considering taking legal action against this fictitious individual who was supposedly responsible for their trading losses. 

Contrary to promises made to his victim investors, Taylor diverted over half a million dollars of the victims’ investment funds and used the money to cover personal expenses, such as restaurants, entertainment and shopping, among others.  Taylor pleaded guilty in January 2016 to fraud by commodities pool operator and concealment of money laundering charges.

In announcing today’s sentence, Judge Reidinger said that the losses to the individual victims were great, many of whom were deprived of the security of their retirements.

Taylor will be ordered to report to the Federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility.  All federal sentences are served without the possibility of parole.

The FBI investigated the case.  In making this announcement, U.S. Attorney Rose also thanked the U.S. Commodities Futures Trading Commission for their invaluable assistance in this investigation. Assistant United States Attorney Don Gast of the U.S. Attorney’s Office in Asheville was in charge of the prosecution.

ASHEVILLE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that in the month of June the U.S. Attorney’s Office in Asheville has filed federal charges against 16 individuals that defrauded the U.S. Department of Veterans Affairs (the VA) by submitting fraudulent travel vouchers for reimbursement. 

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

According to allegations contained in filed court documents, the Charles George Veterans Affairs Medical Center (VAMC), located in Asheville, is operated by the VA and provides services for veterans of the United States military.  Under certain circumstances, veterans with service-connected disabilities are reimbursed for travel expenses on mileage they incur when traveling to and from their residence and the VAMC.  In order to claim mileage reimbursement, eligible veterans must go to the Travel Benefits Office at the VAMC and provide information about the distance traveled.  The veterans then obtain a voucher which they submit to the Agent Cashier to receive reimbursement for their travel.

The charging documents allege that the defendants submitted fraudulent travel vouchers that overstated the distance they traveled for medical appointments or to receive medical treatment.  The VA reimbursed the defendants for their travel expenses based on mileage information on the fraudulent vouchers.  A total of 16 individuals have been charged separately in connection with travel voucher fraud.

A federal grand jury returned federal indictments on June 7, 2016, against three individuals, charging each defendant separately with one count of making a false claim for travel benefits from the VA, for allegedly submitting multiple fraudulent travel vouchers over a period of months or years.  The charge levies a maximum penalty of five years in prison and a $250,000 fine.  The three indicted are:

• Arlan M. Land, 53, of Nolanville, TX, was indicted for allegedly obtaining from the VA approximately $18,839.10 in fraudulent claims.(Docket no. 1:16-cr-72)

• David B. Wright, 56, of Asheville, is facing federal charges for allegedly obtaining approximately $15,391.52 from the VA. (Docket no. 1:16-cr-73)

• Pamela L. Smith, 55, of Asheville, has been indicted for allegedly defrauding the VA of approximately $5,318.96. (Docket no. 1:16-cr-71)

Criminal bills of information have also been filed against 13 defendants.  They are each charged with one count of stealing money from the VA, a charge that levies a potential maximum prison term of one year and a $100,000 fine.  The loss amount associated with each case is less than $5,000.  Those charged are:

• Harris Hamilton, 60, of Chesnee, S.C., is charged for allegedly obtaining from the VA approximately $2,662 in fraudulent claims.  (Docket no. 1:16-mj-72)

• Marcus McEachin, 45, of Asheville, is charged for allegedly obtaining from the VA approximately $4,029 in fraudulent claims.  (Docket no. 1:16-mj-73)

• Michael Tate, 55, of Asheville, is charged for allegedly obtaining from the VA approximately $2,919 in fraudulent claims.  (Docket no. 1:16-mj-74)

• Christopher Miller, 52, of Spartanburg, S.C., is charged for allegedly obtaining from the VA approximately $3,411 in fraudulent claims.  (Docket no. 1:16-mj-75)

• Tommie Borders, 62, of Asheville, is charged for allegedly obtaining from the VA approximately $1,426 in fraudulent claims.  (Docket no. 1:16-mj-76)

• Ruben Dixon, 59, of Lenoir, N.C., is charged for allegedly obtaining from the VA approximately $1,234 in fraudulent claims.  (Docket no. 1:16-mj-77)

• Jeffrey Franklin, 58, of Asheville, is charged for allegedly obtaining from the VA approximately $3,486 in fraudulent claims.  (Docket no. 1:16-mj-78)

• Violet McKinney, 53, of Asheville, is charged for allegedly obtaining from the VA approximately $4,737 in fraudulent claims.  (Docket no. 1:16-mj-79)

• Guy Stivender, 57, of Asheville, is charged for allegedly obtaining from the VA approximately $1,534 in fraudulent claims.  (Docket no. 1:16-mj-80)

• TC Littlejohn, 56, of Asheville, is charged for allegedly obtaining from the VA approximately $1,514 in fraudulent claims.  (Docket no. 1:16-mj-83)

• Kevin Simms of Asheville, is charged for allegedly obtaining from the VA approximately $ 4,348 in fraudulent claims.  (Docket no. 1:16-mj-84)

• Marshall Dukes, 61, of Asheville, is charged for allegedly obtaining from the VA approximately $3,780 in fraudulent claims.  (Docket no. 1:16-mj-85)

• Kenneth Pickens, 47, of Asheville, is charged for allegedly obtaining from the VA approximately $2,480 in fraudulent claims.  (Docket no. 1:16-mj-86)

“The travel reimbursement program exists to ease the financial burden on military veterans seeking medical treatment and access to good medical care.  The system relies upon veterans to submit honest and accurate forms, reflecting actual travel expenses. Unfortunately, these 16 individuals allegedly decided to lie and make some extra cash by padding their travel vouchers.  We simply cannot allow this type of fraud, waste and abuse to go on and we will prosecute anyone who steals money from a program put in place to provide much-needed assistance to our country’s veterans,” said U.S. Attorney Rose.

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

In making today’s announcement U.S. Attorney Rose thanked the VA-OIG and the Veterans Affairs Police Department for their investigation of the cases.  Assistant U.S. Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.

CHARLOTTE, N.C. – Late yesterday, Chief U.S. District Judge Frank D. Whitney sentenced the last member of a mortgage fraud conspiracy involving luxury condominiums in Oak Island, N.C., announced Jill Westmoreland Rose, 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 and Miriam Baer, Executive Director of the North Carolina Real Estate Commission join U.S. Attorney Rose in making today’s announcement.

According to filed court documents and today’s sentencing hearing, throughout 2007 and 2008, Antoine Johnson, 40, of Davidson, N.C., and seven other co-conspirators carried out a mortgage fraud scheme involving luxury condominiums in Oak Island.  According to court records, Johnson, who operated as a promoter for the mortgage fraud conspiracy, controlled A&J Entertainment, Inc. (A&J Entertainment), a company used by the conspiracy to funnel kickbacks derived from the fraudulent scheme and to support false or inflated statements of employment and income in mortgage loan applications. 

Court documents show that the co-conspirators perpetrated the scheme by recruiting individuals who agreed to buy condominiums in their name but had no intention of living in the properties or making payments to the corresponding mortgage loans (commonly referred to as “straw buyers”).  The builder agreed to sell the units to the conspiracy’s straw buyers at an inflated price, causing the lenders to issue mortgage loans based on the inflated prices.  Then at closing, the closing attorney prepared separate accounting statements instructing the builder to pay the difference between the true price and the inflated price of the condominiums to one or more of the conspirators.

According to court records, the conspirators induced mortgage lenders to issue mortgage loans, by submitting loan packages that contained forged documents and fraudulent information about the buyers’ income and employment.  In some instances, the co-conspirators persuaded and bribed a bank employee to provide a bogus verification of deposit as support for the fraudulently obtained loan.  Over the course of the fraudulent scheme, the conspirators caused a total of loss of approximately $4.5 million involving approximately 20 properties.

Court records indicate that Johnson operated as promoter in the scheme, helping to bring the transactions together, for which he received approximately $200,000 in kickbacks funneled through A&J Entertainment’s bank account.

The other seven defendants involved in this fraudulent scheme were previously sentenced as follows:

• Robert Davis, Jr., 41, of Charlotte, was sentenced to 46 months in prison and two years of supervised release.Davis operated as a real estate agent for the scheme.

• Robert Mahaney, Jr., 55, of Ridgeway, S.C., was sentenced to 30 months in prison and two years of supervised release.Mahaney was a mortgage broker for the conspiracy.

• Ahmed H. Green, 37, of Charlotte, was sentenced to 27 months in prison and three years of supervised release.Green acted as a promoter and sometimes as a straw buyer for the conspiracy.

• Carisa L. Majesky, 49, of Charlotte, was sentenced to 24 months in prison followed by two years of supervised release.Majesky operated as a real estate agent for the scheme.

• Somer Bey, 51, of Charlotte, was sentenced to 17 months in prison followed by one year of supervised release.Bey was a real estate agent for the scheme.

• Eric Marlon Davis, 43, of Charlotte, was sentenced to nine months in prison and one year of supervised release, nine months of which in home detention. Davis was a promoter in the scheme.

• Danielle Anderson, 41, of Charlotte, was sentenced to six months in prison and one year of supervised release six months of which in home confinement. Anderson was a bank employee who participated in the scheme.

Johnson will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.  All federal agencies are served without the possibility of parole.

In making today’s announcement, U.S. Attorney Rose thanked the FBI and the North Carolina Real Estate Commission for their investigation of this case.  Assistant United States Attorney Maria Vento prosecuted the case.

CHARLOTTE, N.C. – Minneapolis-based Cardiovascular Systems, Inc. (CSI), has agreed to pay $8 million to resolve allegations that it paid illegal kickbacks to induce physicians to use the company’s medical devices, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. 

Derrick L. Jackson, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General for the region including North Carolina joins U.S. Attorney Rose in making today’s announcement.

According to allegations contained in filed court documents, CSI executed a kickback scheme to induce the use of its medical devices by doctors.  The government alleges that CSI violated the False Claims Act by providing marketing and other practice development services to physicians utilizing CSI’s devices to perform atherectomies.  Atherectomy is a procedure that clears blockages restricting blood circulation in arteries.  The government alleges that CSI developed and distributed marketing materials to promote physicians utilizing CSI’s devices to referring physicians; coordinated meetings between utilizing physicians and referring physicians; and developed and implemented business expansion plans for utilizing physicians.  The government alleges that CSI engaged in these activities to induce doctors to begin to use or continue to use CSI’s devices. 

“Doctors are expected to provide medical advice and treatment options that benefit patients, not their own practice,” said U.S. Attorney Rose.  “A Company cannot reward physicians for using its medical devices over those of competitors.  The type of kickback scheme alleged in this case compromises good medical care and can lead to inefficient use of limited healthcare resources.  My office is committed to preventing medical device manufacturers from improperly influencing physicians’ medical judgment.  We will thoroughly investigate any such allegations,” Rose added.

Today’s settlement resolves a civil complaint filed in July 2013 by whistleblower Travis Thams, a former employee of CSI.  Mr Thams filed the allegations against CSI under the qui tam provisions of the False Claims Act, which permit private parties to file suit on behalf of the government and obtain a portion of the government’s recovery. 

In addition to its settlement with the Justice Department, CSI has also entered into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services - Office of Inspector General, requiring the company to engage in significant compliance efforts over the next five years, including engaging an independent review organization.

“Medical device companies engaging in kickbacks to boost profits undermine physicians’ medical judgment and drive up health care costs for everyone,” said Special Agent in Charge Jackson.  “Our agency will continue to work with our law enforcement partners to investigate and recover Medicare money that was improperly paid.”

This settlement was the result of a coordinated effort by the U.S. Attorney=s Office Western District of North Carolina and HHS-OIG.

The lawsuit is captioned United States, ex rel. Thams v. Cardiovascular Systems, Inc. Case No. 3:13-cv-404.  The claims resolved by this settlement are allegations only, and there has been no determination of liability.

CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced late yesterday the leader of a Charlotte area heroin distribution cell to 432 months in prison, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  Jose Ivan Hernandez, 34, of Mexico, was also ordered to serve five years of supervised release after he is released from prison. 

Daniel R. Salter, 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, and Chief Rob Merchant of the Pineville Police Department join U.S. Attorney Rose in making today’s announcement.

According to filed court documents, evidence presented at the defendant’s trial and yesterday’s sentencing hearing, in or about 2013, Hernandez was managing a heroin distribution cell in Charlotte for a drug trafficking organization that imported heroin from Mexico into the United States.  Court records show that Hernandez received the drugs in packages shipped from California via U.S. Postal Service and that he was responsible for the trafficking of least 10 kilograms of heroin.  

According to trial evidence, as the head of the cell, Hernandez oversaw all aspects of the local drug operation, including the packaging of the heroin into balloons and its distribution, depositing drug proceeds into multiple funnel accounts and wiring the money to various places.  As leader of the cell, Hernandez was also responsible for “collecting” on drug debts.  For example, when Hernandez did not receive payment for a drug shipment fast enough, he sent the recipient of the heroin multiple threatening texts, warning that, “They are going to mess you up.  They have people on the way and they’re going to go for you,” and that “They’re going to your house soon.”

In handing down the lengthy prison term, Judge Whitney said that Hernandez was at a senior point in the drug business, and described his drug trafficking activity as “extensive” and “crossing borders.” Judge Whitney also noted the need to specifically deter Hernandez from future crimes, given his threatening text messages, and the need for general deterrence. 

In February 2016, a federal jury found Hernandez guilty of one count of conspiracy to distribute and to possess with intent to distribute heroin and one count of money laundering conspiracy.  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. 

DEA, CMPD and Pineville PD handled the investigation. Assistant U.S. Attorneys Elizabeth Greene, Kimlani Ford and Taylor Phillips of the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. B  Ales Svak, 43, and a citizen of the Czech Republic, was sentenced today to 151 months in prison for transportation, receipt and possession of child pornography he accessed while visiting the United States, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  Chief U.S. District Judge Frank D. Whitney presided over today’s hearing, and ordered Svak also to serve a lifetime of supervised release and to register as a sex offender.  Svak will also be subject to deportation proceedings upon completion of his federal sentence.

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

According to court documents and to information introduced at the sentencing hearing, Svak arrived in the United States in August 2014 on a 90-day visa, and was scheduled to return to the Czech Republic in November 2014.  Court documents indicate that while visiting in the United States, Svak accessed child pornography online, and shared child pornography with an undercover FBI agent at least four times using a peer-2-peer network.  During a subsequent search of Svak’s residence in Charlotte, law enforcement seized multiple electronic devices, including a laptop computer and two external hard drives.  Forensic analyses of those devices revealed that Svak possessed 1,014 videos and 1,102 images of child pornography, some of which depicted prepubescent minors engaging in sadistic and masochistic or other violent conduct.  Svak also admitted to engaging in a sexual act with a 15-year-old female on two occasions during a prior visit to the United States in 2003.

Svak pleaded guilty in March 2016 to one count of transportation, one count of receipt and one count of possession of child pornography.  He is currently in custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.  All federal sentences are served without the possibility of parole. 

U.S. Attorney Rose thanked the FBI for their investigation of this case. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.

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

ASHEVILLE, N.C. –U.S. District Judge Martin Reidinger sentenced Cody Wayne Thomas, 25, of Cowpens, S.C., to 135 months in prison on federal drug charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  Thomas was also ordered to serve five years under court supervision following his prison term.  

According to filed court documents and today’s sentencing hearing, on October 20, 2015, an officer with the Cleveland County Sheriff’s Office observed Thomas’s vehicle parked in the parking lot of a convenience store.  Court records show that the officer approached the vehicle and awakened Thomas who was asleep in the driver’s seat.  According to court records, the officer observed an assault-style riffle located on the back seat of Thomas’s car, a second firearm in a cubby hole near the vehicle’s dashboard, and small bags containing a crystal substance later determined to be approximately eight ounces of methamphetamine. According to court records, Thomas was previously convicted of first degree burglary in South Carolina and is prohibited from possessing firearms.  Thomas pleaded guilty in March 2016 to one count of possession with intent to distribute methamphetamine. 

* * *

In a separate case, Judge Reidinger also sentenced today Dallas Travolta McBride, 37, of Asheville, to 40 months in prison and three years of supervised release.  According to court records, from on or about January 2015 to May 2015, McBride engaged in multiple drug sales of crack cocaine in the Asheville area.  According to court records, when law enforcement arrested McBride, they recovered marijuana, $2,090 in cash, and a handgun hidden under the driver’s seat of McBride’s vehicle.  In a separate incident, McBride was later arrested after being found in possession of another handgun.  According to court records, McBride was previously convicted in North Carolina of attempted robbery with a dangerous weapon, second degree burglary, and assault with a deadly weapon inflicting serious bodily injury and is prohibited from possessing firearms.  McBride pleaded guilty in December 2015 to one count of possession of a firearm by convicted felon.

In making today’s announcement, U.S. Attorney Rose thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), and the Cleveland County Sheriff’s Office for handling Thomas’s investigation.  Rose also thanked the FBI and the Asheville Police Department for their investigation into McBride.

Assistant United States Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted both cases.

CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced late yesterday Alberto Diaz-Fernandez, 55, of Santa Ana, California, to 121 months in prison and four years of supervised release on drug conspiracy charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. 

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 Kerr Putney of the Charlotte Mecklenburg Police Department join U.S. Attorney Rose in making today’s announcement.

According to filed court documents and today’s sentencing hearing, on or about February 3, 2016, DEA agents of the Charlotte District Office Enforcement Group received information that a shipping pallet which had originated in Santa Ana and was carrying a Nissan V-6 engine, also contained methamphetamine and was destined for delivery to an automotive shop in the Charlotte area.  According to court records, law enforcement located the shipment and executed a search warrant, seizing approximately five kilograms of methamphetamine hidden within an aftermarket compartment in the shipping pallet.  On February 4, 2016, the day the shipment was scheduled for delivery, law enforcement approached Diaz-Fernandez who was waiting in front of the automotive shop.  Diaz-Fernandez told law enforcement that he was expecting an engine he had shipped from California to be delivered on that date.  Diaz-Fernandez later admitted to shipping the hidden drugs “for dangerous people in Mexico.” 

In March 2016, Diaz-Fernandez pleaded guilty to one count of conspiracy to distribute and 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.  All federal sentences are served without the possibility of parole.  The defendant will also be subject to deportation proceedings upon the completion of his federal sentence.

DEA and CMPD handled the investigation. Assistant U.S. Attorney Sanjeev Bhasker of the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – Shavona Danisha Pyatt, 28, of Conway, N.C., appeared in federal court today and pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  U.S. Magistrate Judge David Keesler presided over today’s plea hearing. 

Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Patti Fitzpatrick, Port Director of the U.S. Customs and Border Protection (CBP) Area in Charlotte join U.S. Attorney Rose in making today’s announcement.

According to filed plea documents and today’s hearing, on November 13, 2015, Pyatt arrived at Charlotte Douglas International Airport (Charlotte Douglas Airport) on a direct flight from Montego Bay, Jamaica.  Upon entering the United States, Pyatt presented herself to CBP agents at primary inspection at the airport.  Pyatt acknowledged packing her own luggage. At secondary inspection, CBP agents discovered that Pyatt was attempting to smuggle cocaine pellets hidden both in her luggage and pants.  Court records indicate that CBP agents recovered additional cocaine pellets hidden in Pyatt’s body cavities. A total of 61 pellets containing between 400 grams to 500 grams of cocaine were recovered from Pyatt.  Pyatt was interviewed by HSI agents and stated that she intended to deliver the cocaine to Myrtle Beach, S.C. in exchange for $12,000.

Pyatt was detained following the plea hearing.  The charge levied against her carries a maximum prison term of 20 years and a $1,000,000 fine.  A sentencing date has not been scheduled yet.

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In a separate case, Winston Sherif Richards, 40, of Jamaica, was sentenced today by Chief U.S. District Judge Frank D. Whitney to 30 months in prison, and one year of supervised release on federal drug conspiracy charges.  According to court records, in October 2015, Richards was arrested when he attempted to smuggle cocaine through customs security at Charlotte Douglas Airport.  Court records show that law enforcement found two bags of cocaine weighing approximately 822 grams, hidden within the lining of Richard’s backpack.  Richards told law enforcement that he was hired by a man to bring some “stuff” to the United States and to deliver it to an unknown man in New York.  Richards later admitted in court that he actively participated in the drug conspiracy.  Richards pleaded guilty in March 2016 to one count of conspiracy to possess with intent to distribute cocaine. 

In handing down Richards’ sentence, Judge Whitney said that this prison sentence will help deter future drug trafficking at the Charlotte airport. In addition to the prison term imposed, the court ordered Richards be deported upon completion of his sentence.

* * *

In a third prosecution involving drug smuggling at the airport, Tamara Williams-Kelly, 37, of Jamaica has also pleaded guilty to federal drug charges.  According to court records, in February 2016, Williams-Kelly flew into Charlotte Douglas Airport from Jamaica.  At the airport, CBP agents recovered a total of 1.57 kilograms of packaged powder cocaine hidden in the defendant’s carry-on luggage and on her person.  Court records show that Williams-Kelly told law enforcement she was promised $7,000 as payments for delivering the drugs to Norfolk, Virginia.  Williams-Kelly pleaded guilty on April 29, 2016, to one count of conspiracy to distribute and to possess with intent to distribute cocaine, one count of possession with intent to distribute cocaine, one count of unlawful importation of cocaine conspiracy and one count of unlawful importation of cocaine. She is currently in federal custody awaiting sentencing. 

All three cases are the result of HSI’s Airport Drug Interdiction initiative that targets international drug smuggling and financial crimes, including money laundering, bulk cash smuggling, and unlicensed money transmitters/transporters that utilize air travel to further their criminal enterprise.  Through this initiative, HSI incorporates the collaborative efforts of multiple law enforcement agencies, to include CBP, North Carolina Department of Public Safety’s Divisions of Alcohol Law Enforcement (ALE) and Department of Correction (DOC), Charlotte-Mecklenburg Police Department, Pineville Police Department and Cornelius Police Department.  In making today’s announcement U.S. Attorney Rose thanked these agencies for their joint investigation of these cases.

The prosecution for the government is being handled by Assistant U.S. Attorney Sanjeev Bhasker of the U.S. Attorney’s Office in Charlotte.

CHARLOTTE, N.C. -  A Charlotte man was sentenced today to 11 years in prison for possession and transportation of child pornography, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Chief U.S. District Judge Frank D. Whitney ordered David Lee Young, II, 24, to serve a lifetime of supervised release and to register as a sex offender upon release from prison. Young pleaded guilty in March 2016 to three counts of transportation and one count of possession of child pornography.

Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Chief Kerr Putney of the Charlotte Mecklenburg Police Department join U.S. Attorney Rose in making today’s announcement.

According to admissions made in connection with his guilty plea and to information introduced at sentencing, in October 2014, Young shared child pornography at least three times with an undercover agent over the Internet via a peer-2-peer network.  During a subsequent search of Young’s residence, agents seized a desktop computer and a laptop.  Forensic analyses of those devices revealed that Young possessed 29 videos of child pornography, some of which depicted prepubescent minors engaging in sadistic and masochistic conduct.  Court records show that the child pornography in Young’s possession included at least 13 different children already identified by law enforcement as victims of child pornography.

Young is currently in 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.

U.S. Attorney Rose thanked HSI and CMPD for their investigation of this case. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.

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

STATESVILLE, N.C. B  U.S. District Judge Richard L. Voorhees sentenced yesterday Tony Luke Brewer, 25, of Hays, N.C. to 20 years in prison on charges of possession and production of child pornography, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Voorhees also ordered the defendant to serve a lifetime of supervised release and to register as a sex offender upon release from prison.

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

“Today, we’ve removed a monster from the folds of our society.  Brewer’s massive child pornography collection contained images and videos depicting extreme and violent sexual abuse against children, some of whom were infants, which he shared online with other pedophiles,” said U.S. Attorney Rose.  “But Brewer did not stop there. He solicited young victims online and enticed them to engage in sexually explicit conduct, which he captured and stored on his computer.  Brewer is a predator who belongs behind bars, where he can no longer victimize another young child.”

“Luke Brewer tried to conceal the evidence of his twisted and disturbing criminal activities online.  When the safety of our children is at stake, the FBI will not stop until we uncover those vile offenders who seek to do harm with their demented behaviors,” said Special Agent in Charge Strong.

According to filed documents and statements made in court, Brewer was a member of, or attempted to become a member of, multiple Internet websites through which he and others posted thousands of messages containing images of sexual exploitation involving pre-pubescent children.  The websites’ users employed advanced technological means in order to undermine law enforcement’s attempts to identify them.

According to court records, from at least May 2012, Brewer registered with these websites and uploaded images of child pornography or chatted online with other users.  Court records show that on one such website, Brewer described himself on his user profile as “a young pedo” who “loves meeting new pedos.”  On September 24, 2014, the FBI executed a search warrant at Brewer’s residence, seizing his laptop computers and other storage media.  According to court records, forensic examination of the seized items revealed that Brewer possessed thousands of images and videos of child pornography, including material involving infants and prepubescent minors engaging in sadistic and masochistic or other violent conduct.    

Court records indicate that, in addition to possessing child pornography, Brewer had engaged in multiple chats online with minor victims from different states. According to court records, Brewer knew the victims were underage and induced the victims to engage in sexually explicit conduct, which he captured and stored on his computer.

Brewer is currently in 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 investigated the case.  Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.

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

CHARLOTTE, N.C. – The Department of Justice today filed a civil antitrust lawsuit against Carolinas HealthCare System (CHS), challenging CHS’s practice of imposing steering restrictions in its contracts with commercial health insurers in the Charlotte, North Carolina, area. 

The Antitrust Division and the state of North Carolina filed the lawsuit in the U.S. District Court for the Western District of North Carolina.  The complaint alleges that CHS, with its approximately 50 percent share in the sale of acute inpatient hospital services to health insurers in the Charlotte area, has used its market power to require steering restrictions in its contracts with every major insurer.  These provisions have prevented insurers from, among other things, introducing health plans that encourage patients to use medical providers that offer lower priced, higher-quality services. 

“Americans should be able to choose a healthcare provider that gives them and their families the most cost-effective and appropriate treatment,” said Principal Deputy Assistant Attorney General Renata B. Hesse, head of the Justice Department’s Antitrust Division.  “This lawsuit will stop a dominant hospital from using its market power to undermine its smaller competitors’ efforts to attract patients by competing on the price and quality of their services.”  

“Today’s enforcement action seeks to ensure that consumers in the Charlotte area will benefit by identifying the more cost-efficient, quality providers when making the critically important decision of selecting a doctor or hospital,” said U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina.  “In these times of escalating health care costs, vigilant antitrust enforcement in local healthcare markets such as the Charlotte area is essential to protecting the interests of consumers.”

CHS is the largest healthcare system in North Carolina and one of the largest not-for-profit healthcare systems in the United States.In 2014, CHS had net operating revenue of about $8.7 billion.

ASHEVILLE, N.C. – United States Attorney Jill Westmoreland Rose announced today that a federal grand jury sitting in Asheville has returned a criminal indictment against Larry Dean Bowlsby, 49, for detonating an improvised explosive device inside a Walmart store in 2007.  Bowlsby was first charged by a criminal complaint filed in the Western District of North Carolina on April 15, 2016, and was arrested in Missouri on May 24, 2016. 

C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Jim Schandevel, Special Agent in Charge of the North Carolina State Bureau of Investigation’s Western District Office; Chief Davis Woodard of the Sylva Police Department and Sheriff Chip Hall of the Jackson County Sheriff’s Office join U.S. Attorney Rose in making today’s announcement.

According to allegations contained in the charging documents, on September 26, 2007, Bowlsby detonated an improvised explosive device, namely a pipe bomb, inside a Walmart store located in Sylva, N.C. Court documents allege that Bowlsby placed the pipe bomb in a shopping cart after entering the store.When the pipe bomb was set off it was located in the sporting goods section next to small camping propane cylinders.Court documents allege that a fingerprint recovered from the shopping cart used by Bowlsby was submitted at the time to a nationwide database, however a match was not returned.In January 2016, the fingerprint was resubmitted, this time returning a positive match to the defendant stemming from a 2009 conviction in Colorado.

“As alleged in the indictment, Bowlsby detonated a pipe bomb inside a busy store, injuring at least one person and putting at risk the lives of many others.  Law enforcement have continued to investigate this case and their persistence has paid off.  Bowlsby will be appearing in federal court in this district to be prosecuted for a crime he committed nearly nine years ago,” said U.S. Attorney Rose.

“Detonating a pipe bomb in a Walmart in the middle of the day is an extremely cowardly act of violence. We were very fortunate that there were no serious injuries.  ATF will continue to work closely with our law-enforcement partners to prosecute those who commit heinous crimes like this,” said Special Agent in Charge Hyman.

“Today’s indictment signifies how important it is for law enforcement to remain diligent in its search for the truth, regardless of the hurdles encountered,” said Special Agent in Charge Schandevel.

Bowlby is currently in federal custody and will be transferred to appear in federal court in Asheville.  He is charged with one count of use of an explosive or incendiary instrument to damage or destroy a building or business entity involved in interstate commerce, which carries a maximum prison term of up to 40 years, and one count of unlawful use of fire and an explosive to commit a felony, which carries a mandatory minimum prison term of 10 years, consecutive to any other term imposed. 

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

In making today’s announcement, U.S. Attorney Rose praised the work the ATF, SBI, the Sylva Police Department and the Jackson County Sheriff’s Office which handled the investigation.

Assistant U.S. Attorney Don Gast of the U.S. Attorney’s Office in Asheville is prosecuting the case.

STATESVILLE, N.C. – U.S. District Judge Richard L. Voorhees handed down yesterday lengthy prison terms to three individuals involved in a crack cocaine conspiracy, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  John Fitzgerald “Pumpy” Michaux, 31, of Hickory, N.C., and Terron Juandre “Wordle” Michaux, 29, of Lenoir, N.C. were each sentenced to 168 months in prison followed by five years of supervised release.  Jeremy “Tank” Dula, 28, of Lenoir, was sentenced to 80 months in prison and four years of supervised release for his role in the conspiracy. 

According to court records and yesterday’s sentencing proceedings, beginning in 2013 and through September 2015 in Caldwell County and elsewhere, the three defendants engaged in a drug trafficking conspiracy involving more than five kilograms of crack cocaine.  Court records show that over the course of the investigation, law enforcement seized approximately 400 grams of crack cocaine, three firearms, and approximately $50,000.  Each defendant pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute crack cocaine.

In making today’s announcement, U.S. Attorney Rose thanked the FBI, Homeland Security Investigations, the North Carolina State Bureau of Investigation, the Lenoir Police Department, the Caldwell County Sheriff’s Office, the Hickory Police Department, the Mooresville Police Department, the Lincoln County Sheriff’s Office, the Alexander County Sheriff’s Office and the Iredell County Sheriff’s Office for investigating the case.

* * *

In a separate case, Judge Voorhees sentenced yesterday Christopher Rios Rodriguez, 27, of Newton, N.C. to 136 months in prison and three years of supervised release on charges of possession with intent to distribute methamphetamine.  According to court records and court proceedings, on August 17, 2015, law enforcement conducted a traffic stop of Rodriguez’s vehicle and recovered 8,900 grams (approximately 10,000 dosage units) of 97% pure methamphetamine.  Subsequent investigation revealed that Rodriguez was a source of supply for multiple kilograms of both methamphetamine and cocaine.  Rodriguez pleaded guilty to one count of possession with intent to distribute methamphetamine on March 1, 2016. 

This case was investigated by Homeland Security Investigations, the North Carolina State Bureau of Investigation, the North Carolina State Highway Patrol, the Hickory Police Department and the Burke County Drug Task Force. 

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

ASHEVILLE, N.C. B Jesse Brison Ollis, aka “Jesse Lequire,” 27, of Valdese, N.C., has been handed down a 21-year prison sentence by a federal judge for producing child pornography, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger presided over today’s hearing, ordering the defendant to serve a lifetime of supervised release and to register as a sex offender upon completion of his prison term.

Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Janie Sutton, Special Agent in Charge Alan K. Flora of SBI Computer Crimes Unit and Commander of the North Carolina Internet Crimes Against Children Task Force join U.S. Attorney Rose in making today’s announcement.

According to today’s sentencing hearing and filed court documents, on November 26, 2014, law enforcement received information from Australian authorities that an Australian 14 year old female (victim one) had been engaging in sexually explicit communications over the Internet with an individual later identified as Ollis.  According to court documents, victim one informed law enforcement that she had met Ollis in 2011 online when she was 12 years old and she believed him to be 17 years old.  A forensic examination of electronic devices seized from Ollis’ residence revealed that Ollis had been communicating with victim one online and had “blogged,” or posted, child pornography images on the Internet.  Further forensic investigation revealed that Ollis had additional sexually explicit images and videos of a second minor female (victim two).  Court records indicate that law enforcement identified victim two as a minor living in Western North Carolina who Ollis had befriended. 

“Ollis is every parent’s worst nightmare coming to life,” said U.S. Attorney Rose.  “He targeted impressionable young children and used the Internet in the worst possible way: to share sexually explicit images of victimized underage girls.  While no two child pornography cases involving online communications are the same, each one is a stark reminder that the Internet can be used for good and evil.  The safety of our children rests upon our vigilant efforts to ensure they are protected from online predators lurking and waiting for an opportunity to strike,” Rose added.

“This case serves as an example to anyone who is involved in the production of child pornography…regardless of where in the world the investigation may lead or how much time may have passed, HSI is committed to holding them accountable,” said Special Agent in Charge Annan.  “The child victims of these illegal images often suffer physical and psychological scars for many years, and HSI is committed to aggressively targeting those who engage in child sexual exploitation.”

“Men like Ollis are the reason that the ICAC Task Force exists.  The SBI values all of our law enforcement partners and this case signifies the great work that can be accomplished when agencies work together,” said Special Agent in Charge Flora.

In handing down today’s sentence, Judge Reidinger said that harm to victims in cases like these is one of the reasons we have such long sentences.

Ollis is currently in 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 investigation was handled by HSI and SBI, which are members of the North Carolina Internet Crimes Against Children Task Force.  The U.S. Attorney’s Office in Asheville prosecuted the case.

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

ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today John Michael Awtrey, 56, of Whittier, N.C., to 150 months in prison on child pornography charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Awtrey was also sentenced to a lifetime of supervised release and was ordered to register as a sex offender.

U.S. Attorney Rose is joined in making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas, Sheriff Curtis A. Cochran of the Swain County Sheriff’s Office and Sheriff Derrick Palmer of the Cherokee County Sheriff’s Office.

According to filed documents and statements made in court, on or about February 24, 2013, law enforcement became aware that an individual, later identified as Awtrey, was accessing child pornography online using the Internet profile of “iamnice.”  Law enforcement executed a search warrant at Awtrey’s residence and seized approximately one dozen computers and various electronic devises and storage media.  According to court records, forensic analysis of the seized devices and equipment revealed that Awtrey possessed hundreds of thousands of images and videos involving minors engaging in sexually explicit conduct, including material involving prepubescent minors and sadistic and masochistic conduct.  Court records indicate that Awtrey used the Internet to send some of those images to other individuals and to receive child pornography.

In August 2015, following a bench trial, Judge Reidinger found Awtrey guilty of one count of distribution, one count of receipt and one count of possession of child pornography.

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

The investigation was handled by HIS, the Swain County Sheriff’s Office and the Cherokee County Sheriff’s Office.  The U.S. Attorney’s Office in Asheville prosecuted the case.

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

ASHEVILLE, N.C. - Today, U.S. District Judge Martin Reidinger sentenced Robby Lynn Hawkins, 36, of Rockwood, Tennessee to 15 months in prison on perjury charges for falsely impersonating his brother in court proceedings, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also ordered Robby Hawkins to serve two years under court supervision after he is released from prison.

U.S. Attorney Rose is joined in making today’s announcement by Steve Kloster, Chief Ranger of the Great Smoky Mountains National Park.

According to filed documents and statements made in court, on November 28, 2015, Park Rangers conducted a traffic stop of the vehicle Robby Hawkins was driving within the Great Smoky Mountains National Park.  The vehicle had been reported as stolen in Jackson City, Tennessee.  Robby Hawkins told law enforcement that his name was “Ricky Lynn Hawkins,” which is his brother’s name, and gave his brother’s date of birth.  Subsequently, Robby Hawkins was arrested for driving with a revoked license and possession of a stolen vehicle. 

According to court records, during court proceedings that followed, Robby Hawkins was addressed by the court as “Ricky Hawkins,” and signed court documents using his brother’s name. Court records show that, under his brother’s name, Robby Hawkins was then sentenced to 15 days in prison after pleading guilty to a petty offense charge of possession of a stolen vehicle.  According to court records, law enforcement discovered soon thereafter that “Ricky Hawkins” was incarcerated in Indiana, and that Robby Hawkins had falsely impersonated him in court proceedings.  Robby Hawkins was then charged with one count of perjury in a court document.  He pleaded guilty to the charge in February 2016.

The investigation was handled by the Rangers of the .The prosecution was handled by the U.S. Attorney’s Office in Asheville.

ASHEVILLE, N.C. – United States Attorney Jill Westmoreland Rose announced today that 16 individuals are facing multiple federal drug charges for their involvement in a drug conspiracy.  A criminal indictment was returned on May 18, 2016, and was unsealed today in federal court.  Law enforcement arrested 11 of the 16 charged on Tuesday during an early morning round-up.  Of the remaining five defendants, one is currently in state custody on state charges and four others have not been arrested yet.

According to allegations contained in the criminal indictment, from on or about September 2014, to about December 2015, the defendants operated as a drug conspiracy responsible for trafficking crack cocaine in and around Buncombe and Rutherford Counties and surrounding areas.The 16 defendants named in the 91-count indictment are each charged with conspiracy to distribute crack cocaine and related drug offenses.They are:

• Marquise Brown, 27, of Asheville, NC. (not arrested)

• Carlos Byrd, 34, of Asheville, NC. (arrested)

• Christopher Drayton, 27, of Black Mountain, NC. (arrested)

• Charles Eric Freeman, 50, of Rutherfordton, NC. (arrested)

• Tyquise Deandre Griffin, 22, of Asheville, NC. (arrested)

• Aaron Jones, 35, of Asheville, NC. (in state custody)

• Richard Kimble, 44, of Asheville, NC. (arrested)

• Kevin Lamont Logan, 42, of Rutherfordton, NC. (arrested)

• Roderick Martin, 34, of Asheville, NC. (not arrested)

• Caliph Devon Mayo, 27, of Canton, NC. (arrested)

• Tyler McAfee, Age, 23, of Asheville, NC. (arrested)

• Michael Tyrone Moore, 27, of Asheville, NC. (not arrested)

• Levar William Morris, 36, of Asheville, NC. (arrested)

• Quinton Javon Mosley, 33, of Rutherfordton, NC. (not arrested)

• Danyail Antonio Pea, 32, of Asheville, NC. (arrested)

• Reco Lamar Mosley, 33, of Asheville, NC. (arrested)

 (See chart below for federal charges and penalties for each defendant).

“Today’s arrests are the culmination of a 15-month long investigation conducted by our federal and local law enforcement partners.The defendants charged in the indictment, some of whom have alleged gang ties, operated a drug conspiracy distributing crack cocaine, an illegal substance known for its incredibly high addiction rates and severe, even deadly, effects.The arrest of these individuals will bring immediate relief to neighborhoods affected by their drug trafficking activities and drug-fueled violence. We will continue to work alongside our law enforcement partners to conduct targeted investigations and stem the flow of drugs in our communities,” said U.S. Attorney Rose.

Special Agent in Charge Daniel R. Salter of the Drug Enforcement Administration (DEA) stated, “Today is a victory not only for the multitude of law enforcement agencies who dismantled this organization, but for the citizens of Buncombe and Rutherford Counties. Now that these criminals have been removed from the streets, the poisonous drugs that they would have sold will never reach the consumer. This effort would not have been successful without the high level of cooperation between our federal, state and local law enforcement counterparts.”

“ATF will continue to work closely with our federal, state and local law enforcement partners to focus on reducing violent crime in our communities by targeting drug traffickers and the associated violent criminal activity,” said C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives.

“The strong working relationship between the Rutherford County Sheriff's Office, DEA and the U.S. Attorney's Office is a beneficial force multiplier. Many times, narcotics investigations leave county lines and even cross into other states. Having the ability to reach out and further an investigation with federal assistance is the only answer to cases like these. The results of this investigation will have positive effects in our county for a long time,” said Sheriff Chris Francis of the Rutherford County Sheriff’s Office.

Those arrested this week will appear in federal court today before U.S. Magistrate Judge Dennis Howell. Arrest warrants have been issued for Marquise Brown, Reco Lamar Mosely, Michael Tyrone Moore and Roderick Martin. Aaron Jones is currently in state custody and will appear in federal court on the federal charges at a later date.

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

In making today’s announcement, U.S. Attorney Rose praised the outstanding efforts of special agents of the Drug Enforcement Administration (DEA) under the direction of Special Agent in Charge Daniel R. Salter; the Internal Revenue Service - Criminal Investigation (IRS-CI) under the direction of Special Agent in Charge Thomas J. Holloman III; the Federal Bureau of Investigation (FBI), under the direction of Special Agent in Charge John A. Strong; the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge C.J. Hyman; deputies of the Buncombe County Sheriff’s Office under the direction of Sheriff Van Duncan and the Rutherford County Sheriff’s Office under the direction of Sheriff Chris Francis; and officers of the Asheville Police Department under the direction of Chief Tammy Hooper for their work in investigating this case. U.S. Attorney Rose also noted the invaluable assistance provided by the Columbus Police Department.

Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville is 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.

ASHEVILLE, N.C. – Joel Elias Gonzalez, 53, formerly of Franklin, N.C. was sentenced yesterday to 151 months in prison followed by five years of supervised release for trafficking large quantities of crystal methamphetamine, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  Gonzalez pleaded guilty in February 2016 to one count of distribution of methamphetamine.

U.S. Attorney Rose 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; C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Sheriff Robert L. Holland of the Macon County Sheriff’s Office; and Sheriff Chip Hall of the Jackson County Sheriff’s Office.

According to filed court documents and statements made in court, from in or about June of 2015, Gonzalez was responsible for trafficking large amounts of crystal methamphetamine (crystal meth) in the Franklin, N.C. area and the Rabun County, Georgia area.  Court records indicate that Gonzalez purchased the crystal meth from a source of supply in and around Atlanta, Georgia.  According to court records, Gonzalez and was responsible for trafficking approximately 1.3 kilograms of crystal meth.

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

In making today’s announcement, U.S. Attorney Rose noted that multiple agencies worked together to bring this prolific crystal methamphetamine trafficker to justice and thanked the DEA, the ATF, the Macon County Sheriff’s Office, the Jackson County’s Sheriff’s Office for investigating this case.

Assistant United States Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville handled the prosecution.

ASHEVILLE, N.C. – Pattie Sue Bradley, 43, of Cherokee, N.C. and an enrolled member of the Eastern Band of Cherokee Indians, was sentenced today to 120 months in prison for killing her husband, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  U.S. District Judge Martin Reidinger also sentenced Bradley to three years of supervised release following her prison term.

U.S. Attorney Rose 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 James Dike Sneed of the Cherokee Indian Police Department (CIPD).

According to the information to which Bradley pleaded guilty, other documents filed in this case and statements made in court, on or about January 13, 2015, in Swain County, in Indian Country, that is within the boundaries of the Eastern Band of Cherokee Indians reservation, Bradley stabbed and killed her husband, Henry Bradley, also an Indian.  Court records show that CIPD arrived at the Bradleys’ residence in response to a 911 call.   When the responding officer asked Pattie Bradley about what had occurred, Bradley told him that another individual had tried to break into the house and she had cut him with a knife. 

According to court records, the officer then noticed that the victim was sitting and passed out on the couch inside the couple’s home.  The officer also observed that the victim’s hands were covered with blood.  Pattie Bradley stated that the victim had a cut on his hand but when emergency technicians arrived at the scene they determined that the victim had actually been stabbed once in the abdomen.  The victim was transported to the hospital, where he later died.  On January 14, 2015, CIPD interviewed Pattie Bradley who told the officers that on the night of the incident she and the victim had been drinking and arguing, and she admitted to stabbing the victim over the course of the argument.  

Bradley pleaded guilty on October 23, 2015 to one count of assault with intent to commit murder.  She is currently in custody and upon designation of a federal facility she will be transferred to the custody of the Federal Bureau of Prisons. Federal sentences are served without the possibility of parole.

The FBI and CIPD investigated the case.  Assistant U.S. Attorney John Pritchard prosecuted the case.

ASHEVILLE, N.C. – James Timothy Wilson, 66, of Marion, N.C. was sentenced today to 45 months in prison on passport fraud and aggravated identity theft charges, announced Jill Westmoreland Rose, Acting U.S. Attorney for the Western District of North Carolina. Wilson was also ordered to serve two years under court supervision after he is released from prison.

Thomas Haycraft, Special Agent in Charge of the Washington Field Office, U.S. Department of State, Diplomatic Security Service and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) join U.S. Attorney Rose in making today’s announcement.

According to filed plea documents and today’s sentencing hearing, in June 2009, Wilson stole the identities of two individuals who were employed by Henderson-based Quality Rubber Manufacturing Company Inc. (QRMC), a company previously owned by Wilson.  Using the stolen information, Wilson obtained North Carolina Driver’s Licenses and birth certificates in each of the victim’s name, which he then used as proof of identity to apply for and fraudulently obtain U.S. passports.  According to court records, Wilson used the fraudulent passports to fly internationally, including to Colombia and Mexico. 

According to court records, Wilson accessed and used without permission a third individual’s passport to fly internationally.  The victim, who also worked at QRMC, discovered his passport was missing after he had left it on his desk at work.  Later, the victim discovered his passport had been returned, and noticed the pages were stamped, indicating international travel.  Wilson had used that victim’s passport to fly to Colombia and to Costa Rica.

In announcing today’s sentence, U.S. District Judge Martin Reidinger said that Wilson engaged “in a pattern of dishonesty,” and ordered Wilson to pay $3,000 fine in addition to the prison term imposed.

Wilson pleaded guilty in February 2016 to three counts of making a false statement on an application and two counts of aggravated identity theft.

The investigation was handled by the U.S. Department of State’s Diplomatic Security Service and IRS-CI.

Assistant U.S. Attorney Don Gast, of the U.S. Attorney’s Office in Asheville, is prosecuting the case.

CHARLOTTE, N.C. – Four Assistant United States Attorneys were honored today by the Charlotte-Mecklenburg Police Department at the annual “Chief’s Awards” ceremony, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  The four were presented with the “Chief’s Award for Excellence in Policing” for the federal prosecution of significant criminal cases.  The ceremony was held at CMPD’s Police and Fire Training Academy.            

“I congratulate our four Assistant United States Attorneys for receiving this special recognition today,” said U.S. Attorney Rose.  “They are excellent prosecutors dedicated to the pursuit of justice and I want to thank each one for serving our district and the Department of Justice with distinction and integrity both in and out of the court room.” 

Assistant U.S. Attorneys Robert Gleason, Jennifer Dillon, Elizabeth Greene and William Miller were the four prosecutors recognized for their respective work on three federal prosecutions. Assistant U.S. Attorneys Greene and Miller received the award for the ongoing prosecution of 37 MS-13 gang members, four of whom were convicted at trial in April 2016.

Assistant U.S. Attorneys Gleason and Dillon were recognized for their prosecution of Fathia Davis, who was sentenced in February 2016 to 10 years in prison in connection with a murder-for-hire plot against her ex-husband.  Ms. Dillon also received an award for the prosecution of the “Carlton-Wilson Group,” involving four defendants responsible for multiple break-ins, burglaries and illegal gun sales in the Charlotte area.   The defendants, Tory Vazquez, Brendan Penn, Dominic McDonald and Carlton Wilson, were sentenced to prison terms of up to 206 months for their crimes.

The United States Attorney's Office is responsible for representing the federal government in virtually all litigation involving the United States in the Western District of North Carolina. This includes all criminal prosecutions for violations of federal law, civil lawsuits by and against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Western District of North Carolina extends over 13,563.9 square miles and includes the state’s 32 westernmost counties.  

CHARLOTTE, N.C. – U.S. District Judge Martin Reidinger sentenced today Robert Joseph Lamb, 30, of Brevard, N.C., to 207 months in prison on child pornography charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Lamb, a/k/a “Ezra,” was also sentenced to a lifetime of supervised release and was ordered to register as a sex offender.           

U.S. Attorney Rose is joined in making today’s announcement by Special Agent in Charge Alan K. Flora of SBI Computer Crimes Unit and Commander of the North Carolina Internet Crimes Against Children Task Force, Sheriff David Mahoney of the Transylvania County Sheriff’s Office and Chief Tammy Hooper of the Asheville Police Department. 

According to filed documents and statements made in court, on or about January 7, 2014, the Transylvania County Sheriff’s Office received a tip that Lamb possessed images and videos of child pornography.  A deputy with the sheriff’s office acting in an undercover capacity first contacted Lamb via the Internet.  In a subsequent phone conversation, Lamb told the officer that he possessed child pornography and the two arranged to meet after the undercover officer expressed an interest in viewing Lamb’s child pornography collection.  According to court records, Lamb met the undercover officer and the two went to Lamb’s residence, where Lamb proceeded to show the officer numerous images and videos of child pornography. 

Court records show that Lamb had an extensive collection of child pornography, some of which depicted children under the age of five being sexually abused by adults.  According to court records, over the course of the meeting, Lamb expressed an interest in engaging in sexual contact with young children.  Lamb discussed with the undercover officer the idea of kidnapping, sexually abusing and murdering a child.  According to court records, when the undercover officer told Lamb that he had a six-year-old daughter, Lamb offered to pay the officer to engage in sexual contact with her, and gave the officer $100 as “down payment.” 

On October 31, 2014, law enforcement executed a search warrant at Lamb’s residence.  A forensic analysis of devices seized from Lamb’s residence revealed that Lamb possessed an extensive collection of child pornography, consisting of 816 images and 72 videos.  According to court records, Lamb had also distributed at least 314 times some of his child pornography images and videos via video and photo sharing applications and the Internet.

“Lamb had a sick appetite for watching horrific videos depicting the sexual abuse of very young children.  His extensive child pornography collection included images that were among the worst ever described to the court.  Thanks to the excellent investigative efforts of our law enforcement partners we have secured a long prison sentence against Lamb and have successfully removed this dangerous child predator from our community,” said U.S. Attorney Rose.

“Men like Lamb are the reason that the ICAC Task Force exists.  Lamb epitomizes the type of dangerous predator we hunt.  Even though we deal with this subject matter every day, the Lamb case was particularly horrific to those of us involved.  We learned on the morning of Halloween that Lamb was fantasizing about kidnapping, raping and murdering a child.  Thanks to the quick response by our partners in the ICAC Task Force, we were able to obtain and execute a search warrant at the home that afternoon, a short time before the first trick-or-treaters appeared on the streets of Brevard.  We are very grateful that this case has resolved in such a way that no children were harmed, and a true predator has been removed from that community,” said Special Agent in Charge Flora.

Lamb pleaded guilty in October 2015 to one count of transportation of child pornography and one count of possession of child pornography.     He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.  Federal sentences are served without the possibility of parole.

The investigation was handled by the SBI, the Transylvania Sheriff’s Office and the Asheville Police Department.  These agencies are all members of the North Carolina Internet Crimes Against Children Task Force.  The U.S. Attorney’s Office in Asheville prosecuted the case.

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

CHARLOTTE, N.C. – This week, 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.

“Police week is a time of remembrance of fallen officers who gave their lives to protect ours,” said Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  “Together with our fallen heroes’ families, friends and comrades we come together to grieve for their tragic loss, to celebrate their lives and to carry on the legacy they left behind.”

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 252 U.S. law enforcement officers who have died in the line of duty will be added to the National Law Enforcement Officers Memorial in Washington, D.C., including the names of 123 officers who made the ultimate sacrifice during 2015, and 129 officers who died earlier in history but whose sacrifice had not been previously documented.  With the addition of the 252 names this year, a total of 20,789 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:

• Anthony E. Lossiah, of the Cherokee Indian Police Department, who died in October 2015.

• Robert James Bowling, of the North Carolina DMV – License & Theft Bureau, who died in May 2015.

• Keith Decarlo Smith, of the North Carolina Dept. of Public Safety, who died in December 2012.

• John William Knapp, Jr., of the Boone Police Department, who died in March 1999. 

• Jesse James Styers, of the Forsyth County Sheriff’s Office, who died in January 1935.

• Jack William Sykes, Wilson Police Department, who died in November 1922.

U.S. Attorney Rose noted that along with remembering the officers who made the ultimate sacrifice, “Police Week is an opportunity to honor and recognize all law enforcement officers in our communities, who bravely stand on the front lines each day.  These officers are part of a long line of courageous men and women who have taken an oath to protect our neighborhoods, our homes and our loved ones from harm.  I am thankful for their service, their courage and their willingness to answer the ultimate call of duty.” 

There are approximately 900,000 law enforcement officers currently serving in communities across the United States.  Each year, nearly 60,000 assaults against law enforcement officers are reported, resulting in approximately 16,000 injuries. 

The names of all 252 fallen officers nationwide were formally dedicated on the National Law Enforcement Officers Memorial during the 28th Annual Candlelight Vigil held at the National Mall on Friday, May 13, 2016.

The 35th Annual National Peach Officers’ Memorial Service was held on Sunday, May 15, 2016, in Washington, D.C., and Deputy Attorney General Sally Q. Yates delivered the keynote address.

ASHEVILLE, N.C. –  U.S. Attorney Jill Westmoreland Rose announced the two essay contest winners of the First Annual “Do the Write Thing Challenge” (DtWT) during an awards ceremony held this evening at The Crest Center in Asheville.  This is the first year Buncombe County Schools and Asheville City Schools have participated in the writing challenge.

The “Do the Write Thing Challenge” is a program of the National Campaign to Stop Violence.  Each year, participating 6th, 7th and 8th grade students are challenged to examine and write about the impact of youth violence in their lives, to come up with solutions and ways to address and change the culture of violence, and to make a personal commitment to stand against violence. 

A total of 341 essays from both school districts were submitted for consideration.  The essays of twelve students were selected and the finalists were honored at this evening’s ceremony.  Rontae Harper, a 6th grader with Asheville City Schools and Jordan Gillespie a 7th grader with Buncombe County Schools, were announced as this year’s winners of the DtWT Challenge.

As DtWT National Ambassadors, Rontae and Jordan, their parents/guardians and the teachers who submitted their essays will be invited to participate in the “Do the Write Thing Challenge National Recognition Week” in Washington, D.C.  During this all-expense-paid trip, the students will have an opportunity to meet their elected representatives, visit national monuments and have their works placed in the Library of Congress. 

Speaking at today’s event, U.S. Attorney Rose congratulated the two winners and the finalists for their accomplishments.  She also thanked all the participants of the writing contest, noting that all the students who submitted essays have taken an important first step against violence. 

“One of the priorities of the Department of Justice is to reduce violent crime.  Those of us in law enforcement, whether state, local or federal, acknowledge that prevention is crucial in reducing violent crime in our neighborhoods.  Community involvement and community commitment are critical and the voices and ideas of our youth in these preventive efforts must be encouraged.  ‘Do the Write Thing’ does just that and the U.S. Attorney’s Office is thrilled to be a partner in this program.” said U.S. Attorney Rose who chairs the DtWT committee.

U.S. Attorney Rose also thanked and recognized the Asheville City Schools, the Buncombe City Schools, the Asheville Police Department, the Buncombe County Sheriff’s Office, the Asheville Housing Authority and the community organization Changing Together for partnering with the U.S. Attorney’s Office to form the committee. 

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

CHARLOTTE, N.C. – A South Carolina woman appeared in federal court today and pleaded guilty to one count of wire fraud for defrauding a charitable organization providing prescription cost assistance to low-income individuals, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  Nakeria Rougier Hanson, 31, of Rock Hill, S.C. entered her guilty plea before U.S. Magistrate Judge David Keesler.

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

According to filed court documents and today’s plea hearing, from at least December 2014 to in or about July 2015, Hanson engaged in a scheme to defraud Company A, a national charitable organization providing prescription cost assistance to low-income individuals with chronic or life-threatening illnesses of at least $78,000, by fabricating pharmacy benefit claims for non-existent services.  According to court records, from in or about July 2014 to in or about July 2015, Hanson was employed as a Patient Case Coordinator by Company B, which administered patient support and other services for various health care benefit companies, including Company A.  In her capacity as a Patient Case Coordinator, Hanson processed claims for reimbursement, including claims submitted to Company A.

Hanson admitted in filed documents and in court today that she submitted false and fraudulent applications in the names of her friends and families to Company B in order have those individuals fraudulently approved to receive financial assistance for prescription drug costs from Company A.  Hanson also admitted that she submitted the false applications for cost assistance through various methods, including internet, telephone and facsimile to Company B. Hanson further admitted that after the false applications were approved and the individuals enrolled, she fabricated high-cost prescriptions reimbursement claims for those individuals and submitted them to Company B for reimbursement with charitable organization Company A’s funds.  Hanson intercepted those claims through her employment at the Company B and caused those claims to be paid to the individuals.  In total, Hanson submitted fraudulent enrollment applications and subsequent false prescription claims for at least nine friends or relatives, resulting in fraudulent payments of at least $78,759 to those individuals, who then divided the proceeds with Hanson.

“Hanson stole from a charitable organization providing financial help to individuals suffering with chronic and critical life threatening illnesses and unable to afford costly prescriptions.  For some of these individuals, getting that monetary assistance is critical.  This prosecution should serve as a deterrent and a reminder that my office will prosecute employees or affiliates of charities who steal from organizations funded by generous individuals donating money to support worthy causes,” said U.S. Attorney Rose.  

Hanson was released on bond following today’s plea hearing.  The wire fraud charge carries a maximum prison term of 20 years and a $250,000 fine.  A sentencing date for Hanson has not been set yet.

The FBI investigated the case.  Assistant U.S. Attorney Kelli Ferry of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

ASHEVILLE, N.C. – Today, U.S. District Judge Max O. Cogburn, Jr. sentenced the leader and three co-conspirators to prison terms ranging from 57 months to 70 months for their involvement in a methamphetamine trafficking ring operating in the Henderson county area, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. 

U.S. Attorney Rose 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 Sheriff Charles S. McDonald of the Henderson County Sheriff’s Office.

Judge Cogburn sentenced the defendants as follows:

• Maria Del Ruiz-Zazueta, 45, of Hendersonville to 57 months in prison, followed by three years of supervised release.

• Stephanie Alvarenga, 24, of Hendersonville to 63 months in prison, followed by three years of supervised release.

• Daniel Alfaro, 24, of Laurel Park to 70 months in prison, followed by five years of supervised release.

• Antonio Barbosa, 34, of Hendersonville to 63 months in prison, followed by five years of supervised release.

Judge Cogburn previously sentenced four other conspirators: Nahuan Solano, 27, of Hendersonville, N.C. was sentenced to 63 months in prison followed by five years of supervised release; Eric Lee Garber, 41, of Saluda, N.C. was sentenced to 60 months in prison followed by four years of supervised release; Benjamin Nelson, 31, of Hendersonville, was sentenced to 57 months in prison followed by five years of supervised release; and Allan Collado-Raudez, 23, of Asheville, N.C. was sentenced to 39 months in prison followed by four years of supervised release. 

According to filed court documents and today’s sentencing hearing, from about May 2014 to May 2015, the conspirators were involved in a drug trafficking ring, responsible for distributing significant quantities of methamphetamine in Henderson county and surrounding areas.  According to court records, Maria Del Ruiz-Zazueta was the leader of the drug ring and was assisted by her daughter, Stephanie Alvarenga, in supplying the methamphetamine to their co-conspirators.  Solano and Alfaro were methamphetamine traffickers and acted as runners for Ruiz-Zazueta and Alvarenga.  According to court records, the ring’s customers included area methamphetamine traffickers Garber and Nelson.   Ruiz-Zazueta and other members of the ring utilized Antonio Barbosa as an alternate source of supply, who was assisted by Collado-Raudez.

Court records show that, on or about May 4, 2015, law enforcement in Oklahoma conducted a traffic stop of the vehicle in which Alvarenga was a passenger.  According to court records, Alvarenga and the driver of the vehicle were headed from California to North Carolina.  During the traffic stop, law enforcement seized nearly 10 pounds of methamphetamine from a backpack located in the trunk of the car. 

The four sentenced today are 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 investigation was handled by the DEA and the Henderson County Sheriff’s Office.  Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s office in Asheville is in charge of the prosecution.

ASHEVILLE, N.C. – United States Attorney Jill Westmoreland Rose announced that eight individuals are facing multiple federal drug charges for their involvement in a drug conspiracy operating in Rutherford and Cleveland Counties.  A criminal indictment was returned on April 21, 2016, and was unsealed today in federal court.  Law enforcement arrested yesterday six of the eight charged during an early morning round-up.  One defendant was previously in custody and one has not been arrested yet.  

C.J. Hyman, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Sheriff Chris Francis of the Rutherford County Sheriff’s Office and Sheriff Alan Norman of the Cleveland County Sheriff’s Office join U.S. Attorney Rose in making today’s announcement.

According to allegations contained in the criminal indictment, from on or about May 2015 to about January 2016, the defendants operated as a drug conspiracy responsible for trafficking cocaine and crack cocaine in and around Rutherford and Cleveland Counties. Over the course of the investigation law enforcement have seized narcotics and three firearms.

The eight defendants named in the 22-count indictment are each charged with conspiracy to distribute cocaine and crack cocaine and related drug offenses.  They are:

• Kevin McArthur Bailey, 37, of Shelby, N.C. (previously in custody)

• James Rollins Glover, Jr., 30, of Spindale, N.C. (arrested)

• Anthony Price Laney, 34, of Forest City, N.C. (arrested)

• Lonnie McDowell, 65, of Shelby, N.C. (arrested)

• Craig Vinshun Mosley, 32, of Forest City, N.C. (not arrested yet)

• Justin Latrey Mosley, 26, of Forest City, N.C. (arrested)

• Vincent G. Mosley, 55, of Forest City, N.C. (arrested)

• Heather Michelle Shehan, 28, of Rutherfordton, N.C. (arrested)

(See chart below for federal charges and penalties for each defendant).

In making today’s announcement, U.S. Attorney Rose said, “The arrests in this case are part of my office’s ongoing effort to combat drug trafficking throughout our district.I want to thank all the law enforcement agencies that participated in this investigation for joining forces in our fight against drug distribution and the violence that comes with drug trafficking.”

“The Rutherford County Sheriff’s Office is committed to reducing drug availability and the negative side effects that come along with illegal narcotics distribution. We believe working with our local, state, and federal partners to build and take strong cases to the US Attorney's Office for prosecution is an extremely effective strategy. Without our strong working relationship with the ATF, the results of this investigation and its long lasting positive impacts on our communities would not be possible. I am grateful for these valuable partnerships,” said Rutherford County Sheriff Francis.

The defendants will appear in federal court today in Asheville before a U.S. Magistrate Judge. The charges contained in the indictment are allegations.  The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville is handling the prosecution.

Shahid Hassan Muslim, aka “Sharp,” 33, was sentenced today to life in prison for operating an extensive sex trafficking enterprise that recruited women and girls – some as young as 16 years old – into prostitution.

The sentence was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina, Special Agent in Charge John A. Strong of the FBI’s Charlotte Division and Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcements Homeland Security Investigations (HSI) Atlanta Division.

In sentencing Muslim, U.S. District Court Judge Robert Conrad Jr. of the Western District of North Carolina also ordered him to pay $13,840 in restitution to the victims of the two sex trafficking counts, which charged Muslim with the sex trafficking of those victims for periods of two months and three months, respectively.  On Aug. 11, 2014, a federal jury found Muslim guilty on all counts, including two counts of sex trafficking, one count of kidnapping, one count of production of child pornography, one count of witness tampering and five counts of promoting a prostitution business enterprise.

Evidence presented during Muslim’s four-day trial, including the testimony of five victims, revealed that Muslim’s sex trafficking enterprise operated in Charlotte, North Carolina, and other cities from at least 2010 until his arrest in November 2013.  As established by the evidence presented at trial, Muslim recruited vulnerable young women and girls from the Charlotte area and advertised them for prostitution on the internet.  He lured them into his scheme by promising that they would be part of a “family” when they had none.  Once the women and girls were a part of his enterprise, Muslim demanded all of their proceeds and used brutal violence to control them.  As one witness explained, he never hit the victims in the face because it would damage his “merchandise.”

According to the evidence established at trial, Muslim accused one teenage victim of withholding money from him and then proceeded to handcuff and beat her until she admitted to keeping some of her earnings.  Muslim’s assaults on other victims included burning one victim’s leg with a cigarette to teach her a lesson; and punching a third victim in the stomach, without warning, as she balanced with her eyes closed during a “DUI test” he forced her to perform.  After punching her in the stomach, Muslim then dragged her by her hair to a bathroom and repeatedly punched her until she vomited. 

The evidence further showed that Muslim kidnapped one of the victims and viciously beat her after she left and reported him to the police.  Witnesses testified that he lured her to a hotel, pretending to be a customer, then attacked her and shoved her into a storage trunk.  After transporting the trunk to his house, he handcuffed her, bound her feet and continued to beat her, breaking a toilet in the process.  Muslim then left her in the shower – still handcuffed – overnight with cold water running on her until she managed to escape and report the kidnapping to a neighbor the next day.     

The evidence also demonstrated that Muslim continued his efforts to intimidate and control the victims even after his arrests on both federal and state charges.  He convinced the kidnapping victim to submit a false affidavit declaring his innocence, resulting in dismissal of state charges.  He further harassed a victim in the federal case to submit a false affidavit regarding a sexually explicit video that he produced of her when she was 16 years old.

“This defendant preyed on and abused vulnerable young women by running a violent sex trafficking operation,” said Principal Deputy Assistant Attorney General Gupta.  “While no amount of jail time can undo the harm he caused and the trauma he inflicted, this sentence sends a clear message that people who engage in human trafficking and violate the most basic standards of human decency will face the full force of justice.”

“Shahid Muslim is a ruthless predator who used lies to lure vulnerable young women and underage girls into his criminal enterprise,” said U.S. Attorney Rose.  “But instead of finding the better life his young victims had been promised, they endured unspeakable violence and exploitation in the hands of Muslim for his financial gain.  My office will continue to aggressively prosecute those who engage in this illegal business that dehumanizes victims and strips them of their dignity.”

“Shahid Muslim promised his victims the loving support of a family, instead he controlled them through beatings, fear, and intimidation,” said Special Agent in Charge Strong.  “The FBI devotes a significant amount of resources to helping sex trafficking victims recover from the trauma they suffer at the hands of ruthless people like Muslim.  Today’s sentence is a stark warning, there is a harsh punishment for those who choose to sacrifice another person’s civil rights and freedom for their own profit.”

“Human trafficking is a form of modern-day slavery that Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with our law enforcement partners,” said Special Agent in Charge Annan.  “The sadistic abuse inflicted by this defendant is unspeakable and hopefully victims can now find some relief in knowing the monster who exploited them will be safely locked away for many years.”

This case was investigated by the FBI and HSI, with assistance from the Charlotte-Mecklenburg County Police Department.  It is being prosecuted by Assistant U.S. Attorney Kimlani M. Ford of the Western District of North Carolina and Trial Attorney Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit.  

CHARLOTTE, N.C. – Shahid Hassan Muslim, aka “Sharp,” 33, was sentenced today to life in prison for operating an extensive sex trafficking enterprise that recruited women and girls – some as young as 16 years old – into prostitution.

The sentence was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina, Special Agent in Charge John A. Strong of the FBI’s Charlotte Division and Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcements Homeland Security Investigations (HSI) Atlanta Division.

In sentencing Muslim, U.S. District Court Judge Robert Conrad Jr. of the Western District of North Carolina also ordered him to pay a total of $13,840 in restitution to the victims of the two sex trafficking counts, which charged Muslim with the sex trafficking of those victims for periods of two months and three months, respectively.  On Aug. 11, 2014, a federal jury found Muslim guilty on all counts, including two counts of sex trafficking, one count of kidnapping, one count of production of child pornography, one count of witness tampering and five counts of promoting a prostitution business enterprise. 

Evidence presented during Muslim’s four-day trial, including the testimony of five victims, revealed that Muslim’s sex trafficking enterprise operated in Charlotte, North Carolina, and other cities from at least 2010 until his arrest in November 2013.  As established by the evidence presented at trial, Muslim recruited vulnerable young women and girls from the Charlotte area and advertised them for prostitution on the internet.  He lured them into his scheme by promising that they would be part of a “family” when they had none.  Once the women and girls were a part of his enterprise, Muslim demanded all of their proceeds and used brutal violence to control them.  As one witness explained, he never hit the victims in the face because it would damage his “merchandise.”

According to the evidence established at trial, Muslim accused one teenage victim of withholding money from him and then proceeded to handcuff and beat her until she admitted to keeping some of her earnings.  Muslim’s assaults on other victims included burning one victim’s leg with a cigarette to teach her a lesson; and punching a third victim in the stomach, without warning, as she balanced with her eyes closed during a “DUI test” he forced her to perform.  After punching her in the stomach, Muslim then dragged her by her hair to a bathroom and repeatedly punched her until she vomited. 

The evidence further showed that Muslim kidnapped one of the victims and viciously beat her after she left and reported him to the police.  Witnesses testified that he lured her to a hotel, pretending to be a customer, then attacked her and shoved her into a storage trunk.  After transporting the trunk to his house, he handcuffed her, bound her feet and continued to beat her, breaking a toilet in the process.  Muslim then left her in the shower – still handcuffed – overnight with cold water running on her until she managed to escape and report the kidnapping to a neighbor the next day.

The evidence also demonstrated that Muslim continued his efforts to intimidate and control the victims even after his arrests on both federal and state charges.  He convinced the kidnapping victim to submit a false affidavit declaring his innocence, resulting in dismissal of state charges.  He further harassed a victim in the federal case to submit a false affidavit regarding a sexually explicit video that he produced of her when she was 16 years old. 

“This defendant preyed on and abused vulnerable young women by running a violent sex trafficking operation,” said Principal Deputy Assistant Attorney General Gupta.  “While no amount of jail time can undo the harm he caused and the trauma he inflicted, this sentence sends a clear message that people who engage in human trafficking and violate the most basic standards of human decency will face the full force of justice.”

“Shahid Muslim is a ruthless predator who used lies to lure vulnerable young women and underage girls into his criminal enterprise,” said U.S. Attorney Rose.  “But instead of finding the better life his young victims had been promised, they endured unspeakable violence and exploitation in the hands of Muslim for his financial gain.  My office will continue to aggressively prosecute those who engage in this illegal business that dehumanizes victims and strips them of their dignity.”

“Shahid Muslim promised his victims the loving support of a family, instead he controlled them through beatings, fear, and intimidation,” said Special Agent in Charge Strong.  “The FBI devotes a significant amount of resources to helping sex trafficking victims recover from the trauma they suffer at the hands of ruthless people like Muslim.  Today’s sentence is a stark warning, there is a harsh punishment for those who choose to sacrifice another person’s civil rights and freedom for their own profit.”

“Human trafficking is a form of modern-day slavery that Homeland Security Investigations fights as one of its highest priorities via a coordinated global effort with our law enforcement partners,” said Special Agent in Charge Annan.  “The sadistic abuse inflicted by this defendant is unspeakable and hopefully victims can now find some relief in knowing the monster who exploited them will be safely locked away for many years.”

This case was investigated by the FBI and HSI, with assistance from the Charlotte-Mecklenburg County Police Department.  It is being prosecuted by Assistant U.S. Attorney Kimlani M. Ford of the Western District of North Carolina and Trial Attorney Benjamin J. Hawk of the Civil Rights Division’s Human Trafficking Prosecution Unit. 

CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. handed down lengthy prison terms to two cocaine traffickers for their involvement in a long-standing drug conspiracy, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  Ricardo Rebollar, 27, of Mexico, was sentenced to 168 months in prison and Jose Munoz, 28, of Asheboro, N.C., was sentenced to 70 months of prison.  Each defendant was also ordered to serve five years under court supervision following their prison terms.              

U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI); Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas; Chief Robert C. Helton of the Gastonia Police Department (GPD); and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD).

According to filed documents and statements made in court, the conspiracy operated in Mecklenburg and Gaston Counties, and elsewhere, from 2011 to December 2014, and it involved more than 150 kilograms of cocaine with a street value of more than $7 million.  Over the course of the investigation, law enforcement seized 19 firearms, including assault style weapons.  Court records indicate that the co-conspirators used “cover cars” to provide armed support to couriers as they distributed multiple-kilograms of cocaine per delivery.  This investigation has resulted in the conviction of more than 45 defendants and the seizure of more than 38 kilograms of cocaine and $2 million in drug proceeds.

Three others defendants were previously sentenced in connection with this investigation.  They are:  

• Jose Otoniel Rebollar, 33, of Asheboro, N.C., was sentenced on 12/8/2015 to 148 months

• Pablo Munoz, 32, of Asheboro, N.C., was sentenced on 1/29/2016 to 120 monthsfollowed by five years of supervised release.

• Raul Rebollar, 30, of Randleman, N.C., was sentenced on 11/20/2015 to 63 months in prison, followed by 3 years supervised release.

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.

The investigation is led by the FBI, HSI, and GPD, with assistance from the North Carolina State Bureau of Investigation, CMPD, Randolph County Sheriff’s Office, Asheboro Police Department, and North Carolina State Highway Patrol.  The ongoing investigation and prosecution for the government is being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.

CHARLOTTE, N.C. – A Hickory physician was sentenced to 18 months in prison today on health care fraud charges for submitting to Medicaid and Medicare over $467,376 in fraudulent reimbursement claims, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  Wayne Vincent Wilson, 55, was also ordered to serve one year of supervised release and to pay $208,112.58 as restitution to Medicaid and $2,148.08 to Medicare.

U.S. Attorney Rose is joined in making today’s announcement by Derrick Jackson, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Atlanta Region.

According to filed court documents and today’s sentencing hearing, Wilson is a licensed family practitioner and owner and operator of Wayne Wilson, MD Family Practice (the “Practice”) located in Hickory.  Wilson previously admitted that from 2007 to 2014, he engaged in a scheme to defraud Medicare and Medicaid by submitting fraudulent reimbursement claims totaling more than $467,376 for services that were never provided to beneficiaries.  The fraudulent claims resulted in payments of at least $210,120 to Wilson and the Practice. 

According to court records, Wilson “added and padded” his Medicaid and Medicare reimbursements with these false claims because he believed that Medicaid did not pay him enough for his services.  Court records show that in some instances Wilson perpetrated the fraud by adding non-existent services, such as nerve conduction studies, strep tests, and pulmonary stress tests among others, to actual patient office visits.  In other instances, Wilson fabricated entire office visits and submitted fraudulent claims for dates that patients were not even seen at the office. 

According to court records, beginning in 2005, Wilson contracted with an individual identified as “D.D.” to perform nerve conduction studies, and sought reimbursement for those services through the Practice.  In February 2012, D.D. terminated his relationship with Wilson and the Practice, but Wilson continued to submit fraudulent reimbursement claims to Medicare and Medicaid, falsely stating that he had performed nerve conduction studies for beneficiaries, even though Wilson did not have the equipment or the expertise to provide such studies. 

Wilson pleaded guilty to two counts of health care fraud in October 2015.  He will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.  All federal sentences are served without the possibility of parole.    

HHS-OIG conducted the investigation.  The prosecution of the case was handled by Assistant U.S. Attorney Kelli Ferry and Special Assistant U.S. Attorney Timothy Rodgers.  Mr. Rodgers is a Special Deputy Assistant Attorney General with the North Carolina Department of Justice Medicaid Investigations Division.  The SAUSA position is reflection of the partnership between the Medicaid Investigations Division and the United States Attorney that helps ensure the effective and vigorous prosecution of Medicaid fraud.

The investigation and charges are the work of the Western District’s joint Health Care Fraud Task Force.  The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing  of  all  whistle  blower  complaints,  and  the  creation  of  investigative  teams  so  that individual agencies may focus their unique areas of expertise on investigations.  The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.

If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-

8477 (1-800-HHS-TIPS), or E-Mail at HHSTips@oig.hhs.gov.

CHARLOTTE, N.C. – United States Attorney Jill Westmoreland Rose met today with the leadership of Reentry Councils for Mecklenburg and Buncombe counties and a Project Reentry representative for Iredell county, to discuss the efforts of reentry programs in place aimed at reducing recidivism and helping former offenders transition successfully into mainstream society following incarceration.  The Department of Justice has designated the week of April 24-30, 2016, as National Reentry Week, to bring attention to some of the unique challenges faced by formerly incarcerated individuals and to highlight the department’s efforts to support and strengthen reentry programs and to help former inmates stay out of the criminal justice system.

“The challenges faced by former offenders released from prison are multiple and can oftentimes contribute to a cycle of incarceration,” said U.S. Attorney Rose following today’s meeting.  “Lack of employment and housing opportunities, educational needs, substance abuse and lack of vocational training are some of the barriers that can make a difference in whether a person successfully reenters society after serving his or her prison term. We are partnering with community organizations across the district to remove some of these obstacles and to provide former offenders with the tools and resources they need to be productive, law-abiding citizens post release.”   

Reentry Councils for Mecklenburg and Buncombe Counties and Project Reentry for Iredell County are organizations that provide services to previously incarcerated individuals in their respective communities.  At today’s meeting, each representative provided an overview of the services their programs offer to former inmates or those nearing the end of their prison term, including vocational training, finding and maintaining employment, access to education, housing needs, life skills training, parenting coaching, anger management, and substance abuse counseling.  During today’s meeting, current challenges and ways of improving existing programs were discussed, as well as future initiatives and goals to enhance reintegration outcomes.

As part of National Reentry Week, U.S. Attorney General Loretta E. Lynch released this week the “Roadmap to Reentry,” the Department’s comprehensive vision to reduce recidivism through reentry reforms at the Federal Bureau of Prisons (BOP).  These efforts will help those who have paid their debt to society prepare for substantive opportunities beyond the prison gates, promote family unity, contribute to the health of our economy, advance public safety and sustain the strength of our communities. 

Each year, more than 600,000 citizens return to our neighborhoods after serving time in federal and state prisons.  Another 11.4 million individuals cycle through local jails.  And nearly one in three Americans of working age have had some sort of encounter with the criminal justice system — mostly for relatively minor, non-violent offenses, and sometimes from decades in the past.  The long-term impact of a criminal record prevents many people from obtaining employment, housing, higher education, and credit — and these barriers affect returning individuals even if they have turned their lives around and are unlikely to reoffend. 

The principles outlined in the “Roadmap to Reentry” are aligned with the work of the Federal Interagency Reentry Council which has been working since its creation five years ago to reduce recidivism and improve employment, education, housing, health and child welfare outcomes.

ASHEVILLE, N.C. – United States Attorney Jill Westmoreland Rose announced that 12 individuals were recognized yesterday at an event commemorating National Victims’ Rights week, sponsored by the Western North Carolina Victims’ Coalition in partnership with the U.S. Attorney’s Office.  The event was held at the Asheville Campus of the Asheville-Buncombe Technical Community College.  As reflected in this year’s theme, “Serving Victims. Building Trust. Restoring Hope,” the award honorees were selected for their significant efforts and contributions in assisting victims of crime.

Speaking at yesterday’s event, U.S. Attorney Rose said, “We have gathered to remember, rebuild and restore.  To remember loved ones lost to crime, to assist survivors rebuild their lives, and to restore the hope and trust of crime victims in their journey to healing and recovery.” 

The 12 recipients selected received awards in five categories:

Victim Advocacy Professional:

• Christine Gibson – Disability and Elder Safe Coordinator with the 30th Judicial Domestic Violence and Sexual Assault Alliance, Inc.

• Meredith Hooks – Court Advocate and Family Justice Center Coordinator with Safelight in Henderson County.

• Melissa Knight – Court Advocate with Helpmate.

• Susie Presley – Victim Advocate with Haywood County Sheriff’s Office.

• Angelica Wind – Executive Director of Our Voice.

Outstanding Law Enforcement Professional:

• Sargent Benjamin McKay – Buncombe County Sheriff’s Office.

• Detective Joshua Meindl– Asheville Police Department.

• Detective Matthew Orr – Henderson County Sheriff’s Office.

Criminal Justice Professional:

• Rachael Groffsky – Assistant District Attorney with the 28th Prosecutorial District, Buncombe County.

• The Honorable James Calvin Hill – Chief Court Judge with the 28th Prosecutorial District, Buncombe County.

• Reid Taylor – Assistant District Attorney with the 30th Prosecutorial District.

Compassionate Community Volunteer:

• Carolyn Lescallitt– Volunteer with the 30th Judicial Domestic Violence and Sexual Assault Alliance, Inc.

U.S. Attorney Rose thanked the honorees for their outstanding dedication, service and support in working with crime victims and noted the important role each honoree has played in raising awareness and providing victims of crime with the support and resources they need in the aftermath of crime. 

Along with the U.S. Attorney’s Office, the Western North Carolina Crime Victims’ Coalition is made up of victim advocates from the following agencies: Buncombe County Sheriff's Office; Asheville Police Department;  Buncombe County District Attorney's Office in Prosecutorial District 28; Pisgah Legal Services; Caring for Children - Trinity Place; Helpmate; Our Voice; and the 30th Judicial District Domestic Violence and Sexual Assault Alliance, Inc. 

National Crime Victims’ Rights Week honors and celebrates the achievements of the past thirty years in securing rights, protections, and services for victims. The bipartisan Victims of Crime Act (VOCA), passed by Congress in 1984, created a national fund to ease victims’ suffering. Financed by fines and penalties paid by offenders, the Crime Victims Fund supports services for victims of all types of crime, including assistance for homicide survivors, survivors of child sexual abuse, and victims of human trafficking, as well as rape crisis centers and domestic violence programs among others. VOCA also funds victim compensation programs that pay victims’ out-of-pocket expenses - such as counseling, funeral expenses, and lost wages.

ASHEVILLE, N.C. – Santiago Sanchez, 39, of Mexico, was sentenced today to 210 months in prison followed by five years of supervised release for trafficking large quantities of crystal methamphetamine, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  Sanchez pleaded guilty in December 2015 to one count of possession with intent to distribute methamphetamine.

U.S. Attorney Rose is joined 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; Janie Sutton, Acting Director of the North Carolina State Bureau of Investigation; Sheriff Charles S. McDonald of the Henderson County Sheriff’s Office; Sheriff Donald J. Hill of the Polk County Sheriff’s Office; Sheriff Dudley Greene of the McDowell County Sheriff’s Office; Chief Allen Lawrence of the Marion Police Department; and Chief Tammy Hooper of the Asheville Police Department.

“Through the homemade meth production operation Sanchez devised and ran, he was able to produce and sell large quantities of crystal meth.  Sanchez even involved his own children in his illegal activities using them to translate to further his drug manufacture and distribution. Sanchez illegally entered our country and began to poison our citizens through distribution of this illegal and devastating drug,” said U.S. Attorney Rose.  “We now welcome him to the confines of the United States Bureau of Prisons where he will serve a lengthy and well-deserved sentence.”

Special Agent in Charge Salter stated, “All participating agencies played a crucial role in the eradication of this criminal network. Sanchez’s methamphetamine trafficking activities posed a significant threat to the quality of life in Buncombe, Henderson, Polk Counties and surrounding areas. The removal of this dangerous individual makes these communities safer today. I want to thank our federal, state and local law enforcement counterparts and the United States Attorney’s Office, who had a direct impact in making this investigation a success.”

According to filed court documents and statements made in court, from at least March 2015 to May 2015, Sanchez was responsible for trafficking large amounts of crystal methamphetamine in Buncombe, Henderson and Polk Counties and elsewhere.  Over the course of the investigation, law enforcement observed Sanchez conducting numerous drug transactions, at times using his minor children as translators on the phone or even handing him the container with the narcotics.  Law enforcement executed a search warrant at Sanchez’s residence and an adjacent outbuilding located in Polk County and seized more than a pound of crystal methamphetamine, an Igloo thermos containing 1,680.9 grams of liquid methamphetamine, a burner, a pot with a lid, cutting agents and other drug paraphernalia used by Sanchez to convert the liquid methamphetamine into crystal methamphetamine.  Law enforcement also seized from the residence several firearms, ammunition and $3,200 in cash.

Sanchez is in federal custody and will be transferred to custody of the Bureau of Prisons upon designation of a federal facility.  Federal sentences are served without the possibility of parole.  In addition to the imposed sentence, U.S. District Judge Martin Reidinger ordered the defendant be deported to Mexico upon completion of his prison term.

In making today’s announcement, U.S. Attorney Rose noted that multiple agencies worked together to bring this prolific crystal methamphetamine trafficker to justice and thanked the DEA, the SBI, the Henderson County Sheriff’s Office, the Polk County’s Sheriff’s Office, the McDowell County Sheriff’s Office, the Marion Police Department and the Asheville Police Department for investigating this case.

Assistant United States Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville handled the prosecution.

ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced a Henderson County marijuana grow operator to 54 months in prison, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  Gary Maxwell Lee, 48, of Hendersonville, was also ordered to remain under court supervision for three years after his release from prison.

U.S. Attorney Rose 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; Janie Sutton, Acting Director of the North Carolina State Bureau of Investigation; and Sheriff Charles S. McDonald of the Henderson County Sheriff’s Office.

According to filed court documents and today’s sentencing hearing, in May 2015, law enforcement began their investigation into Lee, after receiving information that he was operating an extensive indoor marijuana growing operation.  According to court records, Lee ran the marijuana grow house from two structures located next to the main home owned by Lee.  Court records indicate that as part of the investigation law enforcement searched Lee’s house and the two structures located on the property, seizing 66 marijuana plants, 10.4 pounds of marijuana in various stages of drying and processing, and $4,245 in cash.  Court records indicate that one of the structures was used as a “nursery” for the younger plants, whereas the larger, more mature plants were stored in the second structure.  Lee had set up in the structures extensive lighting, air filtration, and hydration systems to assist in the growth of the plants. Law enforcement also seized numerous firearms, including shotguns and semi-automatic rifles, as well as twelve ammo cans containing thousands of rounds of ammunition.

According to court records, Lee took steps to avoid detection of his marijuana grow operation by law enforcement, including taking his trash to the dump or burning it, and using carbon filters to cut down on the odor emanating from the grow.   Court records show that Lee has a previous conviction in Florida related to the manufacture of marijuana. 

Lee pleaded guilty in December 2015 to manufacturing marijuana and being a felon in possession of firearms.  He is currently in federal custody and will be transferred to custody of the Bureau of Prisons upon designation of a federal facility.  Federal sentences are served without the possibility of parole. 

DEA, SBI, and the Henderson County Sheriff’s Office investigated the case.  Assistant United States Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville handled the prosecution.

CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced today Jimmy Lee Williams, 48, of Charlotte to 105 months in prison for orchestrating a fraudulent check scheme that netted the conspiracy more than $650,000 in postage stamps and other merchandise, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  Judge Whitney also ordered Williams to serve two years under court supervision following the prison term and to pay $646,993.61 to the United States Postal Service as restitution.

Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service; John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division;  and Janie Sutton, Acting Director of the North Carolina State Bureau of Investigation join U.S. Attorney Rose in making todays’ announcement.

According to court documents and statements made in court, in two separate time periods between November 2010 to present, Williams used a network of 16 accomplices to defraud U.S. Post Offices and other businesses in North and South Carolina, Virginia, Maryland and the District of Columbia. Court records show that Williams and/or his accomplices used counterfeit or fraudulent checks and fraudulent identification to purchase postage stamps, gift cards and other merchandise with a total face value of more than $650,000. 

To execute the fraudulent scheme, Williams used counterfeit checks and checks drawn on his own closed accounts and the bank accounts of accomplices he met in prison and through youth football leagues in the Concord, North Carolina area.  According to court records, Williams’ accomplices gave the stamps they obtained to Williams, who then sold them to an Internet company in California as well as a North Carolina pawn shop, typically for 50%-70% of the face value.  Williams recruited his accomplices from prison and wrote instructions on how to commit the charged postal fraud while serving a prison sentence for violating conditions of his supervised release from a previous federal conviction. 

Williams pleaded guilty to two counts of conspiracy and one count of money laundering. 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.

USPIS, the FBI, and NC SBI investigated the case.Assistant U.S. Attorney Michael Savage, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.

CHARLOTTE, N.C. – A federal jury delivered a guilty verdict yesterday against Kenwaniee Vontorian Tate, 40, of Charlotte, for sex trafficking of a minor by fraud, force and coercion and sex trafficking of a minor while being required to register as a sex offender under North Carolina law, announce announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.

U.S. Attorney Rose is joined making today’s announcement by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD).

In making today’s announcement U.S. Attorney Rose stated, “Tate preyed upon a vulnerable young girl, lured her into a world of sex and violence and exploited her in the worst possible way.  Sex trafficking and victimizing minors for financial gain is a reprehensible crime.   My office will continue to work closely with our law enforcement partners to identify and prosecute sex traffickers who profit from prostituting minors.”

According to filed documents, statements made in court and evidence presented during the two-day trial:

Between September 2014 and February 2015, Tate caused a minor female to engage in commercial sex acts, namely prostitution.  Tate met the victim when she was only 15 years old and became her pimp shortly after they met.  Tate and the victim moved from hotel to hotel while she worked as a prostitute.  Testimony at trial established that Tate controlled all of the profits from the prostitution of the minor victim and used it to support himself.  Tate advertised the minor victim for sex on an Internet website and arranged sexual encounters for her.  Testimony at trial also revealed that Tate slapped and hit the victim when she did not do as Tate instructed, but Tate was careful not to hit her in the face because it may affect her ability to earn money through prostitution.  Trial evidence established that the sex trafficking came to an end when CMPD officers arrested Tate on February 17, 2015 while looking for a different missing minor.  During that operation, CMPD officers found the minor victim hiding in a hotel closet.

Trial evidence also established that at the time that Tate caused the minor victim to engage in prostitution, Tate was registered as a sex offender in North Carolina based upon previous state convictions in Minnesota for criminal sexual conduct.  Tate was also convicted previously in Minnesota federal court for conspiracy to commit sex trafficking of a minor for his involvement in a sex trafficking ring that trafficked juvenile females from Minnesota to Las Vegas, Nevada, to engage in commercial sex acts.  The judge in that case ordered Tate to serve a 16-month sentence.

Tate has been in federal custody since his arrest in November 2015.  At sentencing, he faces a mandatory minimum term of 15 years and a maximum of life in prison and a $250,000 fine for sex trafficking of a minor by force, fraud and coercion, and a consecutive term of 10 years in prison for sex trafficking of a minor while required to register as a sex offender.  A sentencing date has not been set.

The investigation was handled by HSI and CMPD. Assistant U.S. Attorney Kimlani M. Ford is in charge of the prosecution.

CHARLOTTE, N.C. –The President and Chief Financial Officer (CFO) of a Charlotte-based payroll services company were sentenced to prison today by Chief U.S. District Judge Frank D. Whitney, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  Jerry Wayne Overcash, 67, of Charlotte, and John Bernard Thigpen, 60, of Rock Hill, S.C., were sentenced to 46 months and 21 months in prison, respectively, for stealing over $2 million from client companies and using the money to fund exorbitant salaries.  In addition to the prison term, they were each ordered to serve two years of supervised release and to jointly pay $1.3 million as restitution to the victim client companies.  The Court will enter a final restitution amount in 90 days, to allow any additional eligible victims to submit their claims.

The company’s co-founder and Chairman of the Board, Frank Alton Moody, II, 56, of Arden, N.C., was indicted in March 2016 for his role in the fraudulent scheme.

U.S. Attorney Rose is joined in making today’s announcement by Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service (USPIS) and Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI).

“Overcash and Thigpen were integral members of an elaborate financial scheme that ripped off their clients’ money and defrauded the federal government.  A prison sentence is the only punishment befitting of these two professional scam artists,” said U.S. Attorney Rose.

“The fraud scheme executed by the conspirators is an egregious story of countless lies and endless greed. They ignored their fiduciary responsibilities to their clients and left many of them holding the bag, while they stuffed their pockets. They were entrusted as professionals and to represent their client’s interests with respect to the Internal Revenue Service, and they abused this trust by ignoring their responsibilities and engaging in theft.  IRS Criminal Investigation with our law enforcement partners remain committed to pursuing individuals like Overcash and Thigpen, and seeing that they face justice,” said Special Agent in Charge Holloman.  

“The U.S. Postal Inspection Service is committed to investigating and bringing to justice those who prey on innocent victims for their selfish gain.  We value the collaboration with our law enforcement partners to protect the American Public,” said Inspector in Charge Noyes.

According to documents filed in court and today’s sentencing hearings, Thigpen, a Certified Public Accountant, was hired in December 2010 to serve as the CFO of CenterCede Services Inc. (CenterCede), a payroll services company with clients in Charlotte and elsewhere.  CenterCede was established in August 2010 by Overcash and Moody, to assume the business operations of another payroll services company the two men previously owned and operated, “The Resource Solutions Group” (TRSG).  TRSG had been shut down by IRS in August 2010, for failing to pay more than $9 million in federal payroll taxes TRSG collected from its clients. 

Court documents show that from November 2010 to November 2011, CenterCede purportedly provided payroll preparation and processing services to its clients.  As such, CenterCede collected funds from its clients to pay the client companies’ federal tax obligations, gross payroll for the clients’ employees, worker’s compensation, and unemployment insurance, among other moneys, as well as fees due to CenterCede.  According to court records, throughout the relevant time period, Thigpen, with oversight from Overcash and Moody, supervised the preparation of tax returns on behalf of client companies. Contrary to their representations to clients, the conspirators did not pay the clients’ federal taxes in appropriate amounts and by the applicable deadlines.  Instead, according to court records, Moody, Overcash and Thigpen diverted the funds to pay their own exorbitant salaries and to cover growing liabilities, including the tax liabilities of other CenterCede clients.  To keep the scheme afloat, the conspirators paid only those obligations necessary to keep their ongoing cash flow crisis a secret from clients. 

As reflected in court documents, the conspirators favored what they called “priority” clients and attempted to keep those priority clients from learning about monthly cash shortfalls by frequently paying those clients’ obligations ahead of other non-priority clients.  “Priority” clients generally had large payrolls with deposits necessary to fund CenterCede’s short-term cash needs and to keep the scheme afloat.  Court records show that when clients inquired about failures to pay their obligations, the three conspirators took steps to conceal the fraud by providing false excuses and misleading explanations.  Court records show that in the second and third quarters of 2011, Thigpen, Overcash and Moody defrauded CenterCede’s payroll clients of more than $2 million dollars.  At the same time that the conspirators failed to pay the tax obligations of CenterCede’s clients, Overcash and allegedly Moody each continued to draw a $240,000 annual salary from CenterCede.

In announcing today’s sentences, Judge Whitney said that the Court wanted to “send a message to others entrusted with third parties’ money, and anyone who is a fiduciary of other people’s money.”  Judge Whitney noted that Thigpen “learned his lesson the hard way.”  Judge Whitney also said that Overcash “committed a serious crime that victimized a lot of businesses and individuals, and the Internal Revenue Service” and that Overcash’s conduct resulted in “a lot of people being severely hurt.”

Thigpen and Overcash previously pleaded guilty to wire fraud charges.  Moody is currently charged with one count of conspiracy and one count of wire fraud and has been released on bond. The conspiracy charge carries a maximum of 5 years in prison and a $250,000 fine.  The wire fraud charge carries a maximum of 20 years in prison and a $250,000 fine.  All charges against Moody are allegations and he is presumed innocent unless and until proven guilty beyond reasonable doubt in a court of law.

The investigation for the case is being handled by USPIS and IRS-CI.  Assistant U.S. Attorneys Corey F. Ellis and Taylor Phillips of the U.S. Attorney’s Office, in Charlotte are in charge of the prosecution.

CHARLOTTE, N.C. – Chief U.S. District Judge Frank D. Whitney sentenced to 33 months in prison a Fayetteville, N.C. woman responsible for creating fake patient records in a Medicaid fraud conspiracy, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  Tanisha Melvin, 36, was also ordered to serve three years under court supervision and to pay $392,159.81 as restitution to Medicaid.

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

According to information in filed court documents and today’s sentencing hearing, between October 2012 and August 2013, Melvin was involved in a Medicaid fraud conspiracy organized by the ring’s leader, Cynthia Harlan.  Harlan owned and operated “Heartland Consulting and Marketing, Inc.,” a Charlotte-area company, purportedly specializing in the operation of mental health companies and Medicaid reimbursement.  According to court records, Harlan executed a Medicaid fraud scheme involving the fraudulent submission of fake reimbursement claims to Medicaid for services that were never actually provided to beneficiaries.  Court records show that Harlan relied on a network of conspirators, including Melvin, whom she had recruited to carry out the scheme.

According to court records, as part of the healthcare fraud conspiracy, Melvin was responsible for creating fraudulent patient records for companies purported to provide outpatient mental and behavioral health services, including “Kings of Carolina Care 1” (Carolina Care 1) in Rockingham, N.C., and “United Rehabilitation Services” (URS) in Erwin, N.C.  At the direction of Harlan, Melvin fabricated and compiled the sham paperwork in patient files to support the false Medicaid reimbursement claims submitted on behalf of the two companies.  These patient files included fabricated intake packets, non-existent mental health problems and made-up treatment for the problems.  The patient files were intended to deceive Medicaid auditors in case there was an inquiry about the accuracy of the fake claims.  According to court records, during the relevant time period the conspirators attempted to obtain from Medicaid over $1.6 million in fraudulent reimbursement claims. Melvin, Harlan and the other conspirators received a portion of the fraud proceeds for their respective roles in the scheme. 

Court records show that after Harlan became aware that she was being investigated for Medicaid fraud, Harlan instructed Melvin to destroy records relevant to the scheme.  Melvin destroyed documents and, as directed by Harlan, contacted other members of the conspiracy to alert them to the investigation and to instruct them to destroy documents, emails and text messages for the purpose of obstructing the investigation. 

Melvin pleaded guilty in December 2015 to one count of health care fraud conspiracy.  Today, she was released on bond following her sentencing hearing and will be ordered to report to the Federal Bureau of Prisons upon designation of a federal facility.  All federal sentences are served without the possibility of parole.

In announcing today’s sentence Judge Whitney noted that the crime involved “Scarce taxpayer funds that are to be used to assist those that are the most needy.”

In addition to Melvin, three other members of the conspiracy have already been sentenced to prison.  The owners of URS, Alexander Bass and Torrey Darnell Moton, were previously sentenced to 32 and 25 months in prison, respectively, three years of supervised release and were ordered to pay $370,372.37 as restitution to Medicaid.  LaChanda Clotiel Parks, who was also responsible for generating some of the fake patient paperwork, was sentenced to 28 months in prison, followed by three years of supervised release, and was ordered to pay $352,565.69 in restitution for her role in the conspiracy.  The owners of Carolina Care 1, Tyree Craig Jones and Claude Bernard McCray, have been charged with one count of health care fraud conspiracy.  Cynthia Harlan is currently in federal custody on health care fraud conspiracy, aggravated identity theft and obstruction charges. 

The investigation was handled by the FBI with assistance from the North Carolina Medicaid Investigations Division. Assistant U.S. Attorney Kelli Ferry is in charge of the prosecution.

The investigation is the work of the Western District’s joint Health Care Fraud Task Force.  The Task Force is multi-agency team of experienced federal and state investigators, working in conjunction with criminal and civil Assistant United States Attorneys, dedicated to identifying and prosecuting those who defraud the health care system, and reducing the potential for health care fraud in the future. The Task Force focuses on the coordination of cases, information sharing, identification of trends in health care fraud throughout the region, staffing  of  all  whistle  blower  complaints,  and  the  creation  of  investigative  teams  so  that individual agencies may focus their unique areas of expertise on investigations.  The Task Force builds upon existing partnerships between the agencies and its work reflects a heightened effort to reduce fraud and recover taxpayer dollars.

If you suspect Medicare or Medicaid fraud please report it by phone at 1-800-447-8477 (1-800-HHS-TIPS), or E-Mail at HHSTips@oig.hhs.gov.  To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320.

CHARLOTTE, N.C. – A federal jury delivered guilty verdicts today against four members of the street gang “La Mara Salvatrucha,” or “MS-13,” who were on trial for participating in a racketeering conspiracy, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina.  The convictions stem from the multiple acts of violence committed by the defendants for the benefit of the criminal enterprise, including murder and attempted murder.  U.S. District Judge Robert J. Conrad Jr. presided over the trial.

Miguel Zelaya, 20, of Charlotte, Luis Ordonez-Vega, 36, of Concord, N.C., Jorge Sosa, 24, of Charlotte, and William Gavidia, 23, of Kannapolis, N.C. were each convicted of one count of conspiracy to participate in racketeering activity (RICO). 

Zelaya was also convicted of 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 the death of Jose Orlando Ibarra.  

Ordonez-Vega was also convicted of 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 the death of Noel Navarro Hernandez.

Sosa was convicted of attempted 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, that being attempted murder in aid of racketeering. 

According to filed court documents, witness testimony, trial evidence and statements made in court:

From at least in or about 2009 to about May 2015, the four defendants along with 33 others named in a federal indictment, were members of the MS-13 gang, a criminal organization with over 6,000 members in the United States and 30,000 members internationally.  MS-13 originated in Los Angeles, California, and has spread to states across the country, including in North Carolina.  The gang’s members are mostly immigrants or descendants of immigrants from El Salvador and other Central and Latin American countries.  In North Carolina, some of the active MS-13 members are divided into different groups, or “cliques,” which include the “Trece Locos Salvatrucha,” the “Hollywood Locos Salvatrucha,” the “Charlotte Locotes Salvatrucha,” the “Centrales Locos Salvatrucha,” and the “Coronados Little Cycos Salvatrucha,” among others.  The different cliques work together to carry out criminal acts, to protect the interests of the criminal enterprise, and to assist each other in avoiding law enforcement detection. 

MS-13 members adhere to a set of gang rules and pay dues which fund the gang’s criminal activities and support other gang members or their families in the U.S and abroad.  Gang members are also expected to protect the name, reputation, and status of the gang and its members, and to punish through acts of violence and intimidation those who disrespect the gang.  Some MS-13 members signify their affiliation with the gang by wearing blue, black and white color clothing and certain “Mara Salvatrucha,” or “MS-13” tattoos.

Members of MS-13 in Charlotte participated in multiple meetings at various times to discuss gang-related matters and to plan the commission of future crimes for the benefit of the gang.  They were also responsible for numerous criminal acts including murder and attempted murder. 

Zelaya, a/k/a “Most Wanted” and “Ne Ne”, is a member of the “Coronados Little Cycos Salvatrucha” clique.  On December 18, 2013, Zelaya shot and killed Jose Orlando Ibarra, an associate of a rival gang, “The Latin Kings.”  According to trial evidence and testimony, Zelaya admitted to law enforcement that he shot Jose Ibarra because Ibarra owed him money for a gun and because Ibarra and his brother, a Latin King member, had been looking for one of Zelaya’s “homies” with a shotgun. 

Ordonez-Vega, a/k/a “Big Boy,” is a self-admitted member of MS-13 from Nassau County, New York, and a member of the “Brentwood Locos Salvatrucha” clique.  Ordonez-Vega has “MS” tattooed across his stomach and “La Mara Salvatrucha” tattooed across his chest. On June 6, 2013, Ordonez-Vega shot and killed Noel Navarro Hernandez in a strip mall parking lot in Charlotte.  Evidence presented at trial showed that Ordonez-Vega and other MS-13 members targeted Navarro because they believed that Navarro was a rival gang member because of the way he talked, wore red, and his haircut.

Sosa, a/k/a “Koki” and “Loco” is a member of the “Charlotte Locotes Salvatrucha” clique.   According to trial evidence, Sosa has been involved in multiple gang-related incidents on numerous occasions.  For example, on February 1, 2008, Sosa flashed MS-13 gang hand signs at a rival gang member’s mother and pointed a handgun at her while they were stopped in traffic.  On October 15, 2011, Sosa warned a man who asked him to leave a party that he would return with other MS-13 gang members to shoot the victim.  Also, on July 5, 2013, Sosa and other MS-13 members tried to break into a vehicle then attempted to run over with a car the officers who tried to arrest them.  And on June 30, 2013, Sosa was involved in a gang-related shooting, when he and another person followed their victims in a neighborhood in Charlotte and opened fire with a high caliber rifle. 

Gavidia, a/k/a “Duro,” is also a member of the “Coronados Little Cycos Salvatrucha” clique.  According to evidence presented at trial and witness testimony, Gavidia has carried out criminal acts in support of the gang and has often fought rival gang members in clubs.  For example, Gavidia admitted that he taxed drug dealers in MS-13 dominated clubs.  Gavidia was also involved in a shooting on August 11, 2013, when another MS-13 gang member and indicted co-conspirator, Albert Vela-Garcia, shot a victim in the back following a bar fight started by Gavidia.  Gavidia has also attacked a victim for falsely claiming to be a member of MS-13.

“A federal jury has rightfully convicted four gang members responsible for committing multiple acts of violence, including murder,” said U.S. Attorney Rose in making this announcement.  “Today’s guilty verdicts underscore that even though gang membership may in some ways ‘protect’ gangsters from outsiders, it certainly won’t protect them from the vast reach of the U.S. Attorney’s Office and our law enforcement partners.  Together, we will continue to identify and prosecute gang offenders who carry out violent acts for the benefit of their criminal enterprise,” said U.S. Attorney Rose.

The four defendants convicted today will remain in federal custody until their sentencing, which has not been set.

Thirty of the 37 MS-13 gang members previously charged with RICO conspiracy by federal criminal indictment in connection with this case have entered guilty pleas and are currently awaiting sentencing.  They are: Carlos Almonte, Jose Danny Argueta, Juan Bergamasco-Suarez, Milton Chavarria, Raul Contreras, Luis Erazo, Marvin Fuentes-Canales, Luis Funes-Rivera, Jorge Garcia, Cesar Garcia-Perez, Saul Gavidia, Raul Guardado, Angel Hernandez, Jose Manuel Linares, Rene Lopez-Ventura, Jose Moran-Celis, Daniel Navarro, Jonathan Noble, Christian Pena, Jorge Perez, Victor Pineda, Rosendo Rivas, Fec Rodriguez-Vareal, Oscar Trejo, Jaime Turcios, Jose Vasquez, Marlon Vasquez-Maldonado, Albert Vela-Garcia, and Alexis Villalta-Morales.  Four others remain fugitives.  They are: Neris Gutierrez, Salvador Ruiz, Luis Villalta, and Miriam Barilles-Escamilla.  

Following today’s guilty verdicts, U.S. Attorney Rose commended the Charlotte Division of the FBI, ICE’s Homeland Security Investigations, the Charlotte-Mecklenburg Police Department and thanked them for working together to investigate this 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.

Assistant U.S. Attorneys Elizabeth Greene and William Miller are in charge of the prosecution.

CHARLOTTE, N.C. – Charles Caleb Fackrell, 36, of Booneville, N.C. appeared before U.S. Magistrate Judge David S. Cayer today and pleaded guilty to one count of securities fraud for operating a $1.4 million Ponzi scheme, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. 

U.S. Attorney Rose 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 North Carolina Secretary of State Elaine F. Marshall.

According to filed court documents and today’s plea hearing, beginning from in or about May 2012 to about December 2014, Fackrell executed a Ponzi scheme using approximately $1.4 million in funds he solicited from at least 20 victim investors in Wilkes County and elsewhere.  According to court records, Fackrell was a stockbroker who used his position of trust to solicit victim investors and steer them away from legitimate investments to purported investments with “Robin Hood, LLC,” “Robinhood LLC,” “Robin Hood Holdings, LLC,” “Robinhood Holdings, LLC” and related entities (collectively, “Robin Hood”).  These were entities Fackrell controlled and through which he could access the victims’ funds.

Court records indicate that Fackrell solicited his victim investors by making false and fraudulent representations, including that the investors’ money would be invested in, or secured by, gold and other precious metals, when in fact Fackrell spent only a fraction of investor money on such assets.  According to court records, Fackrell also falsely told victims that Robin Hood was a very safe investment, paying guaranteed annual returns of 5% to 7%.  According to court records, contrary to the promises he made to his victims and instead of investing the victims’ funds as promised, Fackrell used the majority of the money to cover personal expenditures, including hotel expenses, groceries, and medical bills, to make purchases at various retail shops and to make large cash withdrawals.  Fackrell also used a portion of the victims’ money to make purported “interest” payments to investors who demanded their money back and to induce further investments from existing investors and their friends and family members.  In all, according to court records, Fackrell diverted over $700,000 of his victims’ money – nearly half of the investor money he obtained – back to other investors in Ponzi fashion payments. 

According to court records, in an attempt to conceal his fraud, Fackrell asked a third party to destroy a computer and documents related to the Ponzi scheme, explaining that he was in trouble with the U.S. Securities and Exchange Commission.    

“Fackrell is an unscrupulous scammer that betrayed those who trusted him with their nest egg.  Instead of using his clients’ money for legitimate investments, as he promised he would, Fackrell focused on enriching himself and perpetuating his fraud through lies.  Thanks to the great work of our law enforcement partners Fackrell’s business of siphoning his clients’ money is over,” said U.S. Attorney Rose.  “This case is an example of how financial predators will use lies and deceit to get their hands on people’s hard-earned money, quickly turning trusting investors into financial fraud victims,” Rose added.   

“At its most basic level, this is a case about greed and the abuse of trust. Charles Fackrell had no regard for the victims he betrayed, making empty promises for big investment returns.  Now he will be held accountable for his actions because of the agents and prosecutors who worked so diligently to bring him to justice,” said Special Agent in Charge Strong.

“This case is particularly egregious because unlike the majority of registered stock brokers, this scam artist betrayed the trust of his clients for his own personal gain and benefit,” Secretary Marshall said. “We are extremely proud of assembling a case that has resulted in a guilty plea today.”

Fackrell was detained following his guilty plea. The securities fraud charge carries a maximum prison term of 20 years and a $5 million fine.  A sentencing date for the defendant has not been set.

The case is being investigated FBI and the Securities Division of the North Carolina Department of the Secretary of State.  U.S. Attorney Rose also thanked the North Carolina State Bureau of Investigation, the Yadkinville Police Department and Kinston’s Department of Public Safety for their invaluable assistance in this investigation. 

The prosecution is being handled by Assistant United States Attorney Daniel Ryan of the U.S. Attorney’s Office in Charlotte.