Western District of North Carolina

CHARLOTTE, N.C. – A federal criminal complaint was filed in U.S. District Court in Charlotte today, charging a Charlotte man with a federal crime in connection with the fatal attack of Iryna Zarutska on the city’s light rail system, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Decarlos Dejuan Brown, Jr., 34, is charged with one count of committing an act causing death on a mass transportation system.

James C. Barnacle, Jr., Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Ferguson in making today’s announcement.

“Iryna Zarutska was a young woman living the American dream — her horrific murder is a direct result of failed soft-on-crime policies that put criminals before innocent people,” said Attorney General Pamela Bondi. “I have directed my attorneys to federally prosecute DeCarlos Brown Jr., a repeat violent offender with a history of violent crime, for murder. We will seek the maximum penalty for this unforgivable act of violence — he will never again see the light of day as a free man.”

“The brutal attack on Iryna Zarutska on the Charlotte Light Rail was a disgraceful act that should never happen in America,” said FBI Director Kash Patel. “The FBI jumped to assist in this investigation immediately to ensure justice is served and the perpetrator is never released from jail to kill again. I want to thank Attorney General Bondi for her pursuit of today’s federal charges, which are the first step toward delivering justice for Iryna and her family – as well as the millions of Americans who deserve to live in our great American cities free from being targeted by violent criminals.”

“This brutal attack on an innocent woman simply trying to get to her destination is an attack on the American way of life,” said U.S. Attorney Russ Ferguson. “Of course, crimes like this affect the victim the most—Iryna deserves justice, and we will bring justice to her and her family. But crimes like this also affect everyone who relies on mass transportation to get to and from work and go about their daily lives, and federal charges are necessary to protect the public and ensure confidence in our transportation systems.”

“Iryna Zarutska had likely taken that train ride many times before. She was probably tired after a day at work and just wanted to go home, but tragically she never made it. We hope this federal charge will help bring her family a measure of justice and the courts will hold the subject charged in this horrific act accountable. Everyone in this country deserves to go work, to school, or just across town without fear of being attacked,” said James C. Barnacle Jr., the FBI Charlotte Special Agent in Charge.

According to allegations in the affidavit filed with the criminal complaint:

On August 22, 2025, at approximately 9:55 p.m., officers with the Charlotte Mecklenburg Police Department (CMPD) responded to a call for service related to an assault that occurred on the Lynx Blue Line light rail in Charlotte. Callers indicated that a woman had been stabbed by a male. Responding officers located the victim inside the rail car. The victim, subsequently identified as Iryna Zarutska, had sustained fatal stab wounds. A pocketknife and other items were collected from the scene.

Investigators reviewed surveillance footage that showed the victim entering the light rail car and sitting down in the row in front of Brown. Approximately four minutes later, Brown pulled a knife from his pocket and unfolded it before striking the victim three times from behind. Following the attack, Brown walked away from the victim. Responding officers located Brown on the light rail platform and he was arrested.

If convicted, Brown faces a maximum statutory sentence of life in prison or death. Ultimately, his sentence will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.

The FBI is investigating the case with the assistance of the Charlotte Mecklenburg Police Department.

Assistant U.S. Attorney Mark Odulio of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

The charges against Brown are allegations and he is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law. 

ASHEVILLE, N.C. – Keith Ryan Noles, 44, of Marble, N.C., was sentenced yesterday to 296 months in prison followed by five years of supervised release on drug and gun charges, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Noles and his co-defendant, Tina Hill, 47, also of Marble, were convicted at trial in March 2024, of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and aiding and abetting possession with intent to distribute methamphetamine. Noles was also found guilty of possession of a firearm by a felon.

According to filed court documents and trial evidence, law enforcement in Texas intercepted more than eight pounds of methamphetamine. Trial evidence showed that law enforcement learned the methamphetamine was intended for Hill and Noles in North Carolina. The jury heard testimony that, between 2020 and 2021, the defendants’ source of supply or his representative made multiple trips to North Carolina to deliver packages of methamphetamine to Hill and Noles, and to pick up cash payments. After the drug delivery was intercepted in Texas, law enforcement planned a controlled delivery of the methamphetamine to Hill and Noles as originally planned. Noles was arrested soon after he arrived to assist with the delivery of the methamphetamine to his and Hill’s residence in Marble. Hill was later arrested at the residence.

In making today’s announcement, U.S. Attorney Ferguson thanked Homeland Security Investigations and the Cherokee County Sheriff’s Office for their investigation of the case as well as the Andrews Police Department and the Graham County Sheriff’s Office for their invaluable assistance.

Assistant U.S. Attorney Christopher Hess and Special Assistant U.S. Attorney Annabelle Chambers of the U.S. Attorney’s Office in Asheville are prosecuting the case. Ms. Chambers is a state prosecutor with the office of the 43rd Prosecutorial District and was assigned by District Attorney Ashley Welch to serve as SAUSA with the U.S. Attorney’s Office in Asheville.  Ms. Chambers is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the office of the 43rd Prosecutorial District and the United States Attorney’s Office.  The SAUSA position helps ensure the effective and vigorous prosecution of federal court cases that impact the counties within the 43rd Prosecutorial District. 

ASHEVILLE, N.C. – Mark Alan Barnes, 44, of Candler, N.C., was sentenced today to 16 months in prison, followed by three years of supervised release, for Social Security benefits fraud, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

According to court documents, from 2015 to 2020, Barnes collected approximately $77,770 in Social Security Retirement Benefits intended for a beneficiary who was deceased. Instead of reporting the beneficiary’s death to the Social Security Administration (SSA) as required, Barnes continued to collect the beneficiary’s SSA retirement benefits, using a debit card associated with the beneficiary’s bank account to withdraw funds from ATMs in the area.

On February 8, 2025, Barnes pleaded guilty to theft of government funds.

“Stealing Social Security benefits is stealing from every taxpayer,” said U.S. Attorney Ferguson.  “For Social Security to work, benefits must go only to those who earned them—not fraudsters. I appreciate the strong partnership of the Social Security Administration in holding fraudsters accountable.”

“Mr. Barnes knowingly engaged in a scheme to steal Social Security benefits,” said Michelle L. Anderson, Acting Inspector General, Social Security Administration. “I would like to thank our law enforcement partners and the U.S. Attorney’s Office, whose work is essential in holding accountable those who defraud vital benefit programs.”

The Social Security Administration’s Office of the Inspector General handled the investigation.

This case is the result of ongoing efforts by the U.S. Attorney’s Office in the Western District of North Carolina to deter theft of government funds and bring to justice individuals who steal government benefits that millions of Americans rely on.

The case was prosecuted by Special Assistant U.S. Attorney (SAUSA) Eric Frick. Mr. Frick is a prosecutor with the Social Security Administration and is assigned to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte, where he focuses on prosecuting SSA fraud cases. The SAUSA position is a reflection of the partnership between the SSA and the U.S. Attorney’s Office.

To report suspected fraud, waste, or abuse against Social Security, you can submit a report online at oig.ssa.gov or contact the SSA-OIG’s fraud hotline at 1-800-269-0271.

ASHEVILLE, N.C. – Today, Chief U.S. District Judge Martin Reidinger ordered Michael Lindsey Jones, 39, of Hendersonville, N.C., to serve 10 years in prison followed by five years of supervised release for trafficking methamphetamine, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Jones’s supplier, Zachery Micah Rice, was sentenced previously to more than 28 years in prison for trafficking fentanyl and methamphetamine.

According to court records, from 2021 to 2023, Jones conspired with Rice to distribute significant quantities of methamphetamine in Buncombe, Henderson, and Transylvania Counties. During the investigation into Jones and Rice’s trafficking activities, law enforcement used a confidential informant to purchase pound quantities of methamphetamine from Rice that Jones coordinated. Court records show that Jones arranged the drug deals, set the meeting times and locations with the confidential informant, and handled the drug-for-cash exchanges. From February to April 2023, Jones was responsible for distributing nearly 1.3 kilograms of methamphetamine.

Jones pleaded guilty on December 30, 2024, to conspiracy to distribute methamphetamine and aiding and abetting the distribution of methamphetamine.

Jones remains in the custody of the U.S. Marshals Service pending placement by the federal Bureau of Prisons.

In making today’s announcement, U.S. Attorney Ferguson thanked the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Indian Affairs, the Buncombe County Sheriff’s Office, the North Carolina State Bureau of Investigation the Henderson County Sheriff’s Office, the Anderson County Sheriff’s Office in South Carolina,  the Asheville Police Department, the Waynesville Police Department, the Cherokee Indian Police Department, the Rutherford County Sheriff’s Office, the Transylvania County Sheriff’s Office, the Haywood County Sheriff’s Office, the Swain County Sheriff’s Office, the Jackson County Sheriff’s Office, the Clay County Sheriff’s Office, and the Spartanburg County Sheriff’s Office in South Carolina for their investigation of the case.

Assistant U.S. Attorney Christopher S. Hess of the U.S. Attorney’s Office in Asheville handled the prosecution.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

 

ASHEVILLE, N.C. – Juve Markie Lequan McAlpin, 24, of Asheville, was sentenced to 15 years  in prison followed by three years of supervised release today for possession of a firearm by a felon and possession of a firearm with an obliterated serial number, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Alicia Jones, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and  Chief Michael Lamb of the Asheville Police Department, join U.S. Attorney Ferguson in making today’s announcement. 

According to court records, on August 4, 2022, McAlpin was convicted in federal court of illegal firearm possession and sentenced to prison. Following his release he was placed under federal supervision.

On April 24, 2024, while serving his term of supervised release, McAlpin was arrested at a Shell gas station in Hendersonville, N.C. During the arrest, law enforcement searched the vehicle in which McAlpin was a passenger and recovered a loaded Taurus model 65 .357 caliber revolver with an obliterated serial number from the passenger-side floorboard. Officers also seized a distinctive black hoodie from the vehicle.

Court records show that McAlpin had been wearing that same hoodie on April 20, 2024, when he fired two rounds into a moving vehicle at an apartment complex in Asheville, striking a passenger in the leg. The victim was treated at the hospital for a gunshot wound.

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

In making today’s announcement, U.S. Attorney Ferguson thanked the ATF and the Asheville Police Department for their investigation of the case.

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

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

ASHEVILLE, N.C. – Asa Shaquille Holloway, 32, of Asheville, was sentenced today to 41 months in prison followed by three years of supervised release for possession with intent to distribute methamphetamine and cocaine base, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Holloway’s sentence will run at the expiration of the 18 months he is serving for violating his federal supervised release.

Jae W. Chung, Acting Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Michael Lamb of the Asheville Police Department, join U.S. Attorney Ferguson in making today’s announcement. 

According to court records, in December 2023, Holloway was under court supervision for a prior federal firearms conviction. On December 19, 2023, federal probation officers conducted a search of Holloway’s residence, seizing 21.37 grams of methamphetamine, digital scales, clear plastic baggies, and a .45 caliber magazine. The Court issued an arrest warrant for Holloway for violating the terms of his federal supervised release. On January 30, 2024, officers with the Asheville Police Department located Holloway and arrested him on the outstanding warrant. The officers also searched Holloway and his vehicle and recovered over 14 grams of crack and 3.34 grams of methamphetamine.

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

In making today’s announcement, U.S. Attorney Ferguson thanked the DEA and the Asheville Police Department for their investigation of the case.

Assistant U.S. Attorney Christopher S. Hess of the U.S. Attorney’s Office in Asheville handled the prosecution.

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Troy Health, Inc. (Troy), a North Carolina-based provider of Medicare Advantage, Medicare Part D, and Dual Eligible Special Needs Plans, has entered into a non-prosecution agreement with the Department of Justice to resolve a criminal investigation into a health care fraud and identity theft scheme involving the use of artificial intelligence and automation software to illegally obtain Medicare beneficiary information and fraudulently enroll beneficiaries into its Medicare Advantage plans.

“Troy told low-income Medicare beneficiaries that it would use new technologies, including its proprietary artificial intelligence platform, to improve patient health outcomes,” said Acting Assistant Attorney General Matthew Galeotti of the Justice Department’s Criminal Division. “Instead, the company misused patient data to enroll beneficiaries in its Medicare Advantage plan without their consent. Today’s resolution reflects the Criminal Division’s emerging focus on corporate enforcement in the health care space and holding both individuals and companies accountable when they defraud our medical system to enrich themselves at the expense of the American taxpayer.”

"The subjects in this case defrauded not only their own patients, but also the taxpayers who help fund Medicare,” said Assistant Director Jose A. Perez of the FBI’s Criminal Investigative Division. “The FBI remains committed to investigating those who would take advantage of American healthcare programs and bringing them to justice."

“The defendant’s use of stolen identities to fraudulently enroll individuals in Medicare Advantage plans was a deliberate scheme to boost profits at the expense of vulnerable patients and the integrity of the Medicare program,” stated Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG, alongside our law enforcement partners, will continue to relentlessly pursue those who exploit Medicare and threaten the security of enrollees’ personal health information.”

As part of the non-prosecution agreement, Troy admitted that, from approximately October 2020 through the end of 2022, Troy defrauded the Medicare program by enrolling beneficiaries in Troy’s Medicare Advantage plans without their knowledge or consent. Under a Troy executive’s direction, some of Troy’s Territory Managers used proprietary software developed by one of Troy’s executives to unlawfully access pharmacy records and customer lists containing sensitive personal information, including beneficiaries’ names, addresses, dates of birth, Medicare ID numbers, and insurance information. Troy used that information to make unsolicited sales calls to potential beneficiaries. During those sales calls, Troy’s sales personnel provided false and misleading information to Medicare beneficiaries. For example, Troy’s sales personnel told prospective enrollees that they were calling on behalf of the beneficiaries’ pharmacies and representing to beneficiaries that Troy’s Medicare Advantage plan was being offered as a supplement to their existing health care plans rather than as a new plan.

Troy also used an artificial intelligence-based health care management platform it developed and made available to participating pharmacies, known as Troy.ai, as part of the scheme.  As described by the company, Troy marketed Troy.ai as a product that would leverage data and machine learning to lower the cost of care and improve health outcomes. As part of its effort to obtain new enrollments, however, Troy misused the platform by offering pharmacies kickbacks for enrollment referrals submitted through Troy.ai.

Troy also admitted that it used information obtained from the customer lists to enroll beneficiaries in Troy’s Medicare Advantage plan without their consent. At the height of the scheme, during the Medicare Advantage open enrollment period between Jan. 1, 2022 and March 31, 2022, Troy enrolled over 2,700 new Medicare Advantage members, many through automatic or batch enrollments. For example, on March 2, 2022, Troy enrolled over 300 beneficiaries on one day, with the enrollments occurring approximately one minute apart. In addition, some Troy employees manually entered fraudulent enrollments through the Centers for Medicare and Medicaid Services (CMS) website. This conduct followed a Troy executive’s announcement at a 2021 board meeting of an “aggressive but achievable” plan to triple Troy’s enrollment during the 2022 open enrollment period.

As part of the non-prosecution agreement, Troy admitted to and accepted responsibility for the acts of its officers, directors, employees, and agents in connection with the scheme. Troy has also agreed to continue cooperating with the Department in any ongoing or future criminal investigation relating to this conduct. As part of this agreement, Troy agreed to pay a criminal penalty of $1,430,008. This penalty has been adjusted based on Troy’s ability to pay.

The Department reached this resolution with Troy based on several factors, including Troy’s efforts to provide all relevant facts known to it, acceptance of responsibility for criminal conduct, extensive and timely remedial measures taken, commitment to continuing enhancement of compliance and internal control programs, absence of prior criminal history or regulatory actions, commitment to cooperation with federal agencies in any ongoing investigations, and the nature and seriousness of the offense. Troy did not receive voluntary self-disclosure credit, but did receive credit for its cooperation with the Department’s investigation and affirmative acceptance of responsibility, which included (i) self-reporting its 2022 batch member enrollment issue to CMS before it had come to the attention of the Department; (ii) providing timely updates on facts learned during its internal investigation; (iii) providing all relevant facts known to it, including information about individuals involved in the conduct. However, and particularly during the early phase of the Department’s investigation, Troy failed to preserve and produce certain documents and evidence in a timely manner and, at times, took actions that were inconsistent with full cooperation.

The FBI and HHS-OIG are investigating the case.

Trial Attorney Clayton P. Solomon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Katherine Armstrong for the Western District of North Carolina are prosecuting the case.

The Criminal Division’s Fraud Section is responsible for investigating and prosecuting health care fraud (HCF) matters. Additional information about the Justice Department’s HCF enforcement efforts can be found at https://www.justice.gov/criminal/criminal-fraud/health-care-fraud-unit.

Maurice Hopkins, 32, of Mt. Holly, North Carolina, appeared before U.S. Magistrate Judge Susan C. Rodriguez for the Western District of North Carolina today and pleaded guilty to a federal civil rights violation for threatening eight individuals with force because of their race, color, religion, and national origin.

According to filed plea documents and today’s court hearing, on June 8, 2024, Hopkins threatened eight individuals with a firearm inside a pizza restaurant in Charlotte. When Hopkins encountered the victims, who were a group of friends getting pizza at the time, he asked if they were American. Hopkins then proceeded to harass the victims calling them terrorists, demanding they speak English, telling them to go back to their country, and making other statements because of the victims’ race, color, religion, and national origin. Court records show that Hopkins made multiple threats, including threatening to punch the victims in the face and go retrieve a firearm and return to kill them. Hopkins then left the restaurant and returned minutes later, walking through the doorway with a loaded AR-15 style rifle. The victims immediately fled through the door in the rear of the restaurant.

As Hopkins admitted in court today, he threatened the eight individuals with force because of their race, color, religion, and national origin and because they were enjoying the goods, services, and facilities of the restaurant.

Hopkins pleaded guilty to one count of interference with federally protected activities, which carries a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Hopkins remains in federal custody. A sentencing date has not been set.

Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division, U.S. Attorney Russ Ferguson for the Western District of North Carolina, and Special Agent in Charge James C. Barnacle Jr. of the FBI Charlotte Field Office made the announcement.

The FBI Charlotte Field Office investigated the case.

Assistant U.S. Attorney Nick J. Miller for the Western District of North Carolina and Trial Attorney Chloe Neely of the Civil Rights Division’s Criminal Section are prosecuting the case.

CHARLOTTE, N.C. – Maurice Hopkins, 32, of Mt. Holly, N.C., appeared before United States Magistrate Judge Susan C. Rodriguez today and pleaded guilty to a federal civil rights violation for threatening eight individuals with force because of their race, color, religion and national origin, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division and Special Agent in Charge James C. Barnacle, Jr. of the FBI Charlotte Field Office join U.S. Attorney Ferguson in making the announcement.

According to filed plea documents and today’s court hearing, on June 8, 2024, Hopkins threatened eight individuals with a firearm inside a pizza restaurant in Charlotte. When Hopkins encountered the victims, who were group of friends getting pizza at the time, he asked if they were American. Hopkins then proceeded to harass the victims calling them terrorists, demanding they speak English, telling them to go back to their country, and making other statements because of the victims’ race, color, religion, and national origin. Court records show that Hopkins made multiple threats, including threatening to punch the victims in the face and go retrieve a firearm and return to kill them. Hopkins then left the restaurant and returned minutes later, walking through the doorway with a loaded AR-15 style rifle. The victims immediately fled through the door in the rear of the restaurant.

As Hopkins admitted in court today, he threatened the eight individuals with force because of their race, color, religion and national origin and because they were enjoying the goods, services and facilities of the restaurant.

Hopkins pleaded guilty to one count of interference with federally protected activities, which carries a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Hopkins remains in federal custody. A sentencing date has not been set.

The FBI Charlotte Field Office investigated the case.

Assistant U.S. Attorney Nick J. Miller for the Western District of North Carolina and Trial Attorney Chloe Neely of the Civil Rights Division’s Criminal Section are prosecuting the case. 

ASHEVILLE, N.C. – Torrey Lane Hodsden, 28, of Asheville, was sentenced to 300 months in prison yesterday followed by five years of supervised release for using a gun in furtherance of drug trafficking and other charges, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Jae W. Chung, Acting Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Michael Lamb of the Asheville Police Department, join U.S. Attorney Ferguson in making today’s announcement.

According to filed court documents and the sentencing hearing, in March 2023, law enforcement began to investigate Hodsden for drug trafficking in the Asheville area. Authorities also determined Hodsden was on federal probation in South Carolina. On March 7, 2023, the Asheville Police Department attempted a traffic stop on Hodsden, but he fled and evaded his arrest. Officers then obtained warrants and conducted a traffic stop of Hodsden who was in a different vehicle. During a search of Hodsden, law enforcement recovered a loaded XDS .45 caliber pistol loaded with five rounds of ammunition and more than $3,694 in cash. Officers then searched the vehicle and recovered $44,661 in cash, methamphetamine, and marijuana from Hodsden’s Gucci bag. Later that day, law enforcement searched Hodsden’s Jaguar where they found 18 large vacuum sealed bags containing over a pound of marijuana, nearly 200 tablets of a mixture containing cathinone, over 100 grams of methamphetamine, fentanyl mixed with cocaine, and various separate amounts of fentanyl and cocaine. A search warrant was executed at Hodsden’s residence where law enforcement seized nearly half a kilogram of methamphetamine, over three pounds of marijuana, fentanyl, fentanyl mixed with cocaine and methamphetamine, digital scales, a blender with white residue, ammunition, and $7,210 in cash.

On November 19, 2024, Hodsden pleaded guilty to possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime. Hodsden will remain in the custody of the U.S. Marshals Service until he is transferred to a designated federal facility of the Federal Bureau of Prisons.

In making today’s announcement, U.S. Attorney Ferguson commended the DEA and the Asheville Police Department for their investigation of the case.

Assistant U.S. Attorney Christopher Hess with the U.S. Attorney’s Office in Asheville prosecuted the case.

CHARLOTTE, N.C. – Antoine Depray Jackson, 54, of Charlotte, was sentenced to 144 months in prison followed by three years of supervised release today on drug and gun charges, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Alicia Jones, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Jae W. Chung, Acting Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office, join U.S. Attorney Ferguson in making today’s announcement. 

According to court records, law enforcement began an investigation into Jackson after he was identified as a drug distributor in the Mecklenburg, Lincoln, and Catawba County areas. On October 4, 2023, a federal search warrant was executed at Jackson’s residence. Law enforcement seized quantities of cocaine base and a loaded KAHR Arms model CT-45, 45 caliber pistol. Jackson has prior criminal convictions, and he is prohibited from possessing a firearm.

On February 7, 2025, Jackson pleaded guilty to possession with intent to distribute cocaine, and possession of a firearm by a felon. He is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons.

In making today’s announcement, U.S. Attorney Ferguson thanked the ATF, the DEA, and the Catawba County Sheriff’s Office for their investigation of the case.

Special Assistant U.S. Attorney (SAUSA) William Wiseman prosecuted the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the District Attorney’s Office and the U.S. Attorney’s Office.

CHARLOTTE, N.C. – Reginald Maraeus Moses, 21, of Charlotte, was sentenced today for stealing multiple firearms from a licensed firearms dealer in Charlotte, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Moses was ordered to serve 27 months in the Federal Bureau of Prisons followed by two years under court supervision.

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

According to court records, on February 20, 2024, Moses crashed a stolen a vehicle into Carolina Sporting Arms Company, Inc., located at 8055 South Boulevard, in Charlotte, with the intent to steal firearms. After breaking into the store, Moses and an accomplice stole 20 firearms, including 18 handguns and two long guns.

Moses pleaded guilty to theft of a firearm from a licensed dealer and aiding and abetting the same.

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

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

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

CHARLOTTE, N.C. – Michael Anthony Cornwell, 30, and a convicted felon, was sentenced today to 106 months in prison and two years of supervised release for firearms offenses, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

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

According to court documents and court proceedings, on September 13, 2022, Cornwell was arrested by CMPD officers on an outstanding warrant. Law enforcement also executed a search warrant at Cornwell’s residence, where they seized multiple rounds of various ammunition, a .40 caliber drum magazine, multiple rifle magazines, a gun sight, digital scales, and distribution quantity of marijuana. Law enforcement also seized a loaded 40 caliber Glock semi-automatic pistol from Cornwell’s vehicle. Cornwell has prior felony convictions, and he is prohibited from possessing firearms or ammunition.

On January 10, 2025, Cornwell pleaded guilty to possession of a firearm and ammunition by a convicted felon, and possession of a firearm in furtherance of drug trafficking. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.

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

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

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

ASHEVILLE, N.C. – A federal grand jury in Asheville returned a criminal indictment charging Peggy Lee Cantrell, 40, of Marion, North Carolina, with defrauding the Federal Emergency Management Administration (FEMA) following Tropical Storm Helene, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

“Disaster relief resources were intended to help Western North Carolina get back on its feet after the devastation left by Helene,” said U.S. Attorney Ferguson. “Knowing that federal funding is often followed by federal fraud, my office is committed to ferreting out such fraud and our work is far from over. We will continue to bring to justice those who fraudulently used taxpayer money for personal gain because full recovery from Helene is going to take every available dollar.”

On September 27, 2024, Tropical Storm Helene struck the Western District of North Carolina, causing massive devastation, including extensive property damage and loss of life. On September 28, 2025, Tropical Storm Helene was declared a major disaster, and federal agencies were able to provide relief to affected individuals and entities in the impacted areas through financial assistance for repairs of impacted properties. FEMA made financial assistance and benefits available to individuals and families who were affected by the storm (victims). Victims, including renters and property owners, who lost the use of their residences could qualify for FEMA benefits. Specifically, victims could seek relief for home repair, personal property damage, transportation, medical expenses, and housing assistance, among other benefits.

According to allegations in the indictment, on or about February 22, 2025, Cantrell filed an application for disaster assistance with FEMA for a dwelling she claimed was located at 193 Beaver Creek Road, in Marion, and was damaged by Tropical Storm Helene. The indictment alleges that, in the application, Cantrell asserted that she rented the property and that the damaged dwelling was her primary residence. On or about February 27, 2025, Cantrell allegedly amended her FEMA application’s residential status from renter to owner of the damaged dwelling. Contrary to her claims, the indictment alleges that Cantrell never lived at, rented or owned a residence or structure at that location. In fact, no dwelling existed at that location at the time the storm struck the area, and Cantrell was residing in Wake County, well outside the effects of Tropical Storm Helene. Then on February 28, 2025, Cantrell falsely represented to a FEMA inspector that she owned the residential trailer that was destroyed, but not the land where the trailer was placed.

According to allegations contained in the indictment, on or about March 8, 2025, Cantrell submitted a handwritten letter to FEMA attesting that the information she provided was “true and correct.”  She allegedly wrote that she had purchased the dwelling from J.W. of South Carolina for $8,500 and that she had lived at 193 Beaver Creek Road for 25 years. She also falsely attested that that all of her important personal documents “got washed away by Hurricane Helene.” In connection with her application, and as part of her fraudulent scheme, Cantrell also allegedly filed a falsified “Residential Property And Owner’s Association Disclosure Statement,” to support her claim that she had purchased 193 Beaver Creek Road in 2005, from an individual identified as R.E., knowing that was not a true statement. The indictment alleges that, in the Disclosure Statement, Cantrell used the name and signature of R.E., without R.E.’s consent or knowledge, in order to convince FEMA of the validity of her claim for benefits.   

On March 12, 2025, FEMA paid Cantrell’s false claim and wired $30,631.59 to Green Dot Bank in Pasadena, California. It is alleged that Cantrell withdrew funds from a credit union in Marion, North Carolina.

Cantrell appeared in federal court this morning. She is charged with fraud in connection with a major disaster or emergency benefits and aggravated identity theft. If convicted, she faces up to 30 years in prison for the disaster benefits fraud charge and two years in prison for the aggravated identity theft charge, to be served consecutive to any other prison term imposed.                   

The charges against Cantrell are allegations and she is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

U.S. Attorney Ferguson commended the U.S. Department of Homeland Security, Office of the Inspector General and FEMA’s Fraud Investigations and Inspections Division for their investigation of the case.

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

The U.S. Attorney’s Office for the Western District of North Carolina is committed to protecting federal disaster relief programs from waste, fraud and abuse. To report suspected disaster-related fraud, contact the National Center for Disaster Fraud (NCDF) at 1-866-720-5721, or online at www.justice.gov/DisasterComplaintForm.

ASHEVILLE, N.C. – U.S. Attorney Russ Ferguson announced today that a number of individuals are facing federal firearms and immigration charges under Operation Take Back America, a nationwide initiative to protect our communities from perpetrators of violent crime, repel the invasion of illegal immigration and achieve total elimination of cartels and transnational criminal organizations (TCOs). 

Criminal indictments returned by the grand jury in Asheville charged the following defendants, among others:

Justin Allen Owenby, 27, of Asheville, was indicted for the unlawful possession of a firearm. Owenby is alleged to have unlawfully possessed a Glock 48, 9mm pistol, knowing he had prior felony convictions.

Gregory Lee Pettit, 51, of Candler, N.C., is charged with possession of a grenade, which was not registered to him in the National Firearms Registration and Transfer Record. Pettit is also charged with possession of a firearm by an unlawful user that is addicted to a controlled substance.

William Stanley Ellwood, 38, of Cherokee, N.C., is charged with possession of a firearm silencer, which was not registered to him in the National Firearms Registration and Transfer Record. He is also charged with one count of receiving and possessing a silencer not identified by a serial number.

Rafael Martinez-Reano, 35, of Rutherfordton, N.C., is charged with illegal reentry into the United States. Martinez-Reano was previously deported from the United States two times: on December 31, 2018, and on April 13, 2018, at or near Hildago, Texas.

The charges in the indictments are allegations and 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 Ferguson thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and Emergency Removal Operations, the North Carolina State Highway Patrol, the North Carolian Department of Public Safety Alcohol Law Enforcement, the Buncombe County Sheriff’s Office, and the Cherokee Indian Police Department for their respective investigations that led to the charges.

The cases are being prosecuted by the U.S. Attorney’s Office in Asheville.

The indictments are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETF) and Project Safe Neighborhoods (PSN).

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ASHEVILLE, N.C. – Shawnenna Caroline Roland, 39, of Cherokee, an enrolled member of the Eastern Band of Cherokee Indians, is facing federal charges for child abuse, child neglect, and assault in Indian country, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

James C. Barnacle, Jr., Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Carla Neadeau of the Cherokee Indian Police Department (CIPD), join U.S. Attorney Ferguson in making today’s announcement.

According to allegations in the three count bill of indictment, Roland intentionally assaulted a minor child resulting in serious bodily injury, including permanent and protracted loss and impairment of the child’s mental and emotional function. The Indictment further alleges that Roland showed reckless disregard for human life through a willful act and grossly negligent omission in the care of the child, resulting in serious bodily injury.

Roland is in tribal custody awaiting transfer to the custody of the United States Marshals Service. The charges against her are merely allegations and she is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.

U.S. Attorney Ferguson thanked the FBI and the Cherokee Indian Police Department for their investigation of the case.

Assistant U.S. Attorney Alex M. Scott of the U.S. Attorney’s Office in Asheville is prosecuting the case.

ASHEVILLE, N.C. – Shawnenna Caroline Roland, 39, of Cherokee, an enrolled member of the Eastern Band of Cherokee Indians, is facing federal charges for child abuse, child neglect, and assault in Indian country, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

James C. Barnacle, Jr., Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Carla Neadeau of the Cherokee Indian Police Department (CIPD), join U.S. Attorney Ferguson in making today’s announcement.

According to allegations in the three count bill of indictment, Roland intentionally assaulted a minor child resulting in serious bodily injury, including permanent and protracted loss and impairment of the child’s mental and emotional function. The Indictment further alleges that Roland showed reckless disregard for human life through a willful act and grossly negligent omission in the care of the child, resulting in serious bodily injury.

Roland is in tribal custody awaiting transfer to the custody of the United States Marshals Service. The charges against her are merely allegations and she is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.

U.S. Attorney Ferguson thanked the FBI and the Cherokee Indian Police Department for their investigation of the case.

Assistant U.S. Attorney Alex M. Scott of the U.S. Attorney’s Office in Asheville is prosecuting the case.

CHARLOTTE, N.C. – Today, United States Attorney Russ Ferguson was honored to host Deputy Attorney General Todd Blanche to the U.S. Attorney’s Office for the Western District of North Carolina (WDNC).

During his visit, Deputy Attorney General Blanche met with U.S. Attorney Ferguson and the leadership team to discuss key issues and significant cases impacting the district. Deputy Attorney General Blanche also spoke with prosecutors and personnel from the office. In his remarks, he outlined Department of Justice priorities and expressed his appreciation for the office’s work implementing Operation Take Back America, dismantling cartels and transnational criminal organizations, addressing immigration and violent crime, and protecting vulnerable populations, including children and the elderly. He also thanked the team for their service and their commitment to justice.

Deputy Attorney General Blanche also met with law enforcement representatives to highlight the important role of partnerships in enforcing the rule of law and enhancing public safety.

“It was an honor to welcome Deputy Attorney General Blanche, a veteran of the Department, to the Western District of North Carolina,” said U.S. Attorney Ferguson. “The Deputy Attorney General got into the weeds and discussed the details of the work we are doing to protect our communities. We are very grateful for his attention to what is important to us here in North Carolina.”

For more information about the U.S. Attorney’s Office, and important programs and initiatives please visit: https://www.justice.gov/usao-wdnc.

CHARLOTTE, N.C. – Federal prosecutors and personnel with the U.S. Attorney’s Office will join community organizers, local neighborhoods, and law enforcement partners in the Western District for National Night Out on Tuesday, August 5, 2025.

National Night Out (NNO) is an annual community-building campaign that promotes partnerships and camaraderie between law enforcement and the communities they serve to make our neighborhoods safer places to live. Millions take part in National Night Out across thousands of communities throughout the country on the first Tuesday of August in most areas of the country.

During this year’s National Night Out, the U.S. Attorney’s Office will attend community events in Charlotte organized by the West Boulevard Neighborhood Coalition and the Hidden Valley Community Association, to engage with community members, answer questions, and share information about federal public safety initiatives. Representatives from the U.S. Attorney’s Office will also be at Stumpton Park in Matthews and the Kenilworth Forest neighborhood in Asheville.

“Our communities are safer when law enforcement and neighborhoods work together to prevent and address crime,” said U.S. Attorney Russ Ferguson.  “That’s the point of National Night Out, and we are proud to join our law enforcement partners and communities across the district on this special night.”

National Night Out was established in 1984 with funding from the Bureau of Justice Assistance of the U.S. Department of Justice. The program is administered by the National Association of Town Watch, a nationwide non-profit organization.

Coordinated by local law enforcement and trained volunteers, National Night Out provides an opportunity to bring police and neighbors together under positive circumstances. Neighborhoods host block parties, cookouts, festivals, parades, safety demonstrations, seminars, youth events, visits from emergency personnel and more. National Night Out sends a message that neighbors are united and working together to keep their communities and each other safe.

For more information, visit https://natw.org/

CHARLOTTE, N.C. – Jose De La Cruz-Lopez, 45, an illegal alien from Mexico, pleaded guilty today to misusing a social security number and using false immigration identification documents, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Seven additional defendants also have been charged federally following the execution of a search and seizure warrant at Buckeye Fire Equipment Company in Kings Mountain, N.C. In addition to De La Cruz-Lopez, two others have also entered guilty pleas.  Charges against others are expected after additional investigation.

“Identity theft is a pervasive problem that can wreak havoc on a victim’s life,” said U.S. Attorney Russ Ferguson.  “We take it very seriously, particularly in cases like this where it undermines our employment laws and the integrity of the hiring process.  As this investigation continues, we want to remind employers to exercise vigilance and remain alert for counterfeit documents used to establish a worker’s identity and employment eligibility.”

According to plea documents and other court filings, De La Cruz-Lopez, who is not authorized to work in the United States, admitted to obtaining employment at Buckeye Fire Equipment using the Social Security Number and personally identifiable information of another individual who is eligible to work in the United States and used that information on false identification documents. The falsified documents included a driver’s license bearing De La Cruz-Lopez’s image and the name of the individual eligible to work in the United States and a copy of the individual’s Social Security card. The defendant, who had been employed at the company since 2022, falsely attested on the I-9 employment eligibility verification form that he was the person presented on the ID and that he was a citizen of the United States.

Below are the seven additional defendants charged as a result of the investigation:

Humberto Guzman Lemus, 32, of Mexico, was charged with illegally reentering into the United States. Lemus was previously deported from the United States on December 23, 2019, at or near Hidalgo, Texas, after he was arrested for driving while impaired and failure to stop at a flashing red light. The defendant has pleaded guilty to illegal reentry and is awaiting sentencing.

Angel Antonio Lara Reyes, 52, of Honduras, is charged with illegally reentering into the United States. Reyes was previously deported from the United States on November 21, 2014, at or near Brownsville, Texas. The defendant has pleaded guilty to and is awaiting sentencing.

Arurto Albarras Altunar, 40, of Mexico, is charged with illegal reentry into the United States. Altunar was previously deported from the United States three times in less than 30 days at or near Laredo, Texas on February 14, 2016, and at or near Hidalgo, Texas, on February 20, 2016, and again on March 8, 2016.

Geovany Lopez Lopez, 38, of Guatemala, is charged with illegally reentering the United States. Lopez was previously deported from the United States on May 11, 2011, at or near Columbus, Georgia, after he was arrested for assault on a female, resisting a public officer, and injury to real property.

Luiz Antonio Martinez Lopez, 40, of Mexico, is charged with illegal reentry into the United States. Lopez was previously deported from the United States on August 4, 2011, at or near Laredo, Texas, after he was arrested for a traffic law violation. He was deported again on March 11, 2019, at or near Laredo, Texas, after he was arrested for impaired and reckless driving, wanton disregard, and resisting a public officer.

Alberto Perez Mendoza, 37, of Mexico, is charged with illegal reentry into the United States. Mendoza was previously deported from the United States three times: on July 15, 2006, at or near Brownsville, Texas, on January 21, 2015, at or near Hidalgo, Texas, and again on January 28, 2015, at or near Laredo, Texas.

Enrique Gil Rojano, 52, of Honduras, is charged with illegally reentering the United States. Rojano was previously convicted in California of transporting and/or selling a controlled substance and was sentenced to three years in prison. He was later arrested again and convicted of felony perjury and was subsequently deported from the United States on September 7, 2005.

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

The cases announced today are part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Since the implementation of the initiative, 44 individuals have been charged with immigration related offenses in the Western District of North Carolina.

In making today’s announcement, U.S. Attorney Ferguson credited U.S. Immigration and Customs Enforcement, Homeland Security Investigations, and Emergency Removal Operations for their investigations that led to the charges. U.S. Attorney Ferguson also commended several other law enforcement agencies that assisted in the investigation, to include the FBI, the U.S. Marshals Service, U.S. Customs and Border Protection, CBP’s Air and Marine Operations, IRS Criminal Investigation, the Social Security Administration’s Office of Inspector General, the North Carolina National Guard, the DEA, the ATF, King’s Mountain Police, the Gaston County Sheriff’s Department and the Gaston County Police Department.

Assistant U.S. Attorney Kenneth Smith and Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte are prosecuting the cases.

ASHEVILLE, N.C. – Kyle Heath Clark, 38, of Candler, N.C., was sentenced today to 295 months in prison followed by five years of supervised release for drug and gun charges, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

According to court documents and court proceedings, between June 2023 to February 2024, Clark trafficked fentanyl and methamphetamine in Buncombe County and surrounding areas. During the investigation, law enforcement seized from Clark’s vehicles, his storage unit, his hotel room, and from his person 11 total firearms, including an AR-type rifle, ammunition, over 64 grams of fentanyl and 1.9 kilograms of methamphetamine, digital scales, drug paraphernalia, and over $25,900 in cash. Clark has multiple prior felony convictions, and he is prohibited from possessing firearms or ammunition.

On February 10, 2025, Clark pleaded guilty to possession with intent to distribute fentanyl and methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a felon. He remains in the custody of the U.S. Marshals Service pending placement by the federal Bureau of Prisons.

In making today’s announcement, U.S. Attorney Ferguson thanked the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Indian Affairs, the Buncombe County Sheriff’s Office, the North Carolina State Bureau of Investigation the Henderson County Sheriff’s Office, the Anderson County Sheriff’s Office in South Carolina,  the Asheville Police Department, the Waynesville Police Department, the Cherokee Indian Police Department, the Rutherford County Sheriff’s Office, the Transylvania County Sheriff’s Office, the Haywood County Sheriff’s Office, the Swain County Sheriff’s Office, the Jackson County Sheriff’s Office, the Clay County Sheriff’s Office, and the Spartanburg County Sheriff’s Office in South Carolina for their investigation of the case.

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

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

ASHEVILLE, N.C. – Stephanie Miranda Neace, 32, of Blairsville, Georgia, was sentenced today to 84 months in prison followed by five years of supervised release for the 2023 kidnapping and robbery of an elderly victim, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. In April, Neace’s co-defendant, Jordan Nathaniel Hedden, was sentenced to 121 months in prison in April for his role in the victim’s kidnapping.

James C. Barnacle, Jr., Special Agent in Charge of the FBI in North Carolina joins U.S. Attorney Ferguson in making today’s announcement.

According to evidence presented at Neace’s trial, filed court documents, and witness testimony, on November 30, 2023, the victim, a 71-year-old female, was driving from Georgia to North Carolina, when she saw Neace and Hedden walking. The victim offered them a ride because it was cold outside. Neace and Hedden accepted the ride, and soon after they entered North Carolina, Hedden instructed the victim to drive to his car. When they arrived at the location, a car was not there. Hedden then ordered the victim to stop the vehicle, and when the victim refused, Hedden forced the victim to stop the car and get in the back seat. Hedden then took over driving.

According to evidence presented at trial, the victim began to cry and Hedden yelled at her and told her to shut up. Trial evidence showed that Hedden appeared to be high and agitated and became paranoid that the victim had a tracking device. At one point, Hedden stopped the vehicle, and he and Neace searched the car and the victim herself for tracking devices. Then, they took the victim’s phone and disabled it. Hedden also demanded money from the victim, but the victim only had $2. Fearing for her safety, the victim told the defendants to take her to an ATM and the defendants agreed. During the drive into Tennessee, Hedden made the victim promise that she would not identify them to the police.

During the drive to the ATM, the victim convinced Hedden to let her withdraw money from a gas station ATM instead of a bank. The victim also told Hedden that she would give the defendants the money if they let her stay behind safely at the gas station. When they arrived at the gas station, the victim took her purse and her car key fob. She told Hedden to turn off the car so the headlights could not be seen from the people inside the gas station, and Hedden complied. As the victim and Hedden were walking toward the gas station, the victim began to run to the door and scream for help. Hedden ran back to the car, attempted to use it to flee but was unable to start the car without the key fob. Hedden and Neace then fled on foot and escaped into the woods but were apprehended days later.

Neace will remain in federal custody pending placement by the Federal Bureau of Prisons at a designated facility.

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

Assistant U.S. Attorneys Don Gast and Alexis Solheim of the U.S. Attorney’s Office in Asheville are prosecuted the case.

CHARLOTTE, N.C. – Beko Technologies, Corp. (Beko), a manufacturer of compressed air products located in Atlanta, Georgia and a subsidiary of a German company, has agreed to pay $3,662,026 to resolve allegations that it provided false information to obtain Paycheck Protection Program (PPP) loans for which it was not eligible, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

“PPP loans were designed to assist struggling businesses and to keep people employed in the middle of the pandemic,” said U.S. Attorney Ferguson.  “The program was supported by taxpayer money to help small businesses and the U.S. economy, not to bankroll foreign businesses ineligible for taxpayer-funded assistance.”

Congress created the PPP in March 2020 under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The PPP was administered by the Small Business Administration and provided forgivable loans to small businesses during the COVID-19 pandemic. In December 2020, Congress approved funding for a second round of forgivable PPP loans. When applying for PPP loans, borrowers were required to certify that they were eligible for the requested loans and that the information they provided was true and accurate.

This settlement resolves allegations that Beko misrepresented that it was a small business when it submitted applications for PPP loans totaling over $2.5 million. The government contends that Beko represented in its loan applications that it had 104 or fewer employees when it was, in fact, a subsidiary of a Germany company with over 500 employees worldwide, and therefore was ineligible for the loans, which were forgiven in full at the expense of U.S. taxpayers

This matter arose from a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned United States ex rel. GNGH2 Inc. v. Beko Technologies Corp., No. 3:24-cv-980 (W.D.N.C.).

The government’s investigation was led by Assistant U.S. Attorney Seth Johnson.

Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The claims resolved by the settlement are allegations only. There has been no determination of liability. 

CHARLOTTE, N.C. – Christopher Murrita Diaz, 20, and Gustavo Vergara Avalos, 21, both of Monroe, N.C., were each sentenced to 130 months in prison followed by a term of supervised release yesterday for drug and gun charges, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Both Diaz and Avalos pleaded guilty to conspiracy to distribute cocaine and possession of a machinegun. Diaz also pleaded guilty to distribution of cocaine, transfer of a machinegun, and possession of a firearm in furtherance of drug trafficking.

Alicia Jones, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Sheriff Eddie Cathey of the Union County Sheriff’s Office, join U.S. Attorney Ferguson in making the announcement.

According to court documents and court proceedings, law enforcement initiated and investigation into Diaz after they learned he was selling cocaine and machinegun conversion devices, commonly referred to as a “Glock switches.” During the investigation, Diaz sold cocaine to a confidential informant working with the ATF, 28 Glock switches, a firearm, two AR style firearms, and a machinegun. At least one of the sales of contraband occurred at Vergara-Avalos’ residence. In October 2023, law enforcement executed a search warrant at the residence where they seized a total of 10 firearms, 26 Glock switches, and more cocaine.     

Both men are in custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

The ATF and Union, Union County Sheriff’s Office, the Monroe Police Department and the Waxhaw Police Department investigated the case. The U.S.

Attorney’s Office in Charlotte handled the prosecution.

CHARLOTTE, N.C. – William Dalton Edwards, 26, of Mount Airy, N.C., was sentenced today to 24 months in prison and three-years supervised release for his role in a scheme involving the theft of livestock from North Carolina stockyards and farms, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Edwards was also ordered to pay $334,350.46 to the victims of the scheme.

Miles B. Davis, Special Agent in Charge, Office of the Inspector General, Office of Investigation of the U.S. Department of Agriculture (USDA-OIG), Southeast Region, Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Charlotte Field Office, Sheriff Alan Norman of the Cleveland County Sheriff’s Office

and Sheriff Darren Campbell of the Iredell County Sheriff’s Office, join U.S. Attorney Ferguson in making today’s announcement.

According to court documents and court proceedings, from April 2018 to October 2022, Edwards and his co-conspirator, Clint Clifford Sicking, conspired to defraud livestock markets, also known as sales barns, in Iredell and Cleveland Counties, North Carolina. The investigation determined that on multiple occasions Edwards and Sicking purchased cattle from sales barns in North Carolina. To pay for the cattle, Edwards and Sicking wrote checks that were worthless, knowing they did not have sufficient funds to cover the checks.

Court records show that Edwards and Sicking arranged to transport the cattle out-of-state before the defrauded sales barns and financial institutions could determine their checks were worthless. The stolen cattle were then resold in Texas and Oklahoma. Over the course of the scheme, Edwards and his Sicking caused over $350,000 in losses to sales barns in North Carolina. The sales barns—which are family-owned in North Carolina—incurred these losses because they are required to pay farmers and ranchers immediately after the sale of their livestock.

On August 2, 2024, Edwards pleaded guilty to conspiring to defraud the United States and to violate the laws of the United States. One of the objects of the charged conspiracy was to hamper and impede the Packers and Stockyard Division of the U.S. Department of Agriculture in its regulation of fair livestock markets. Other objects of the conspiracy included a scheme to obtain funds under the custody and control of federally insured financial institutions through false statements and representations; to steal livestock valued at more than $10,000; and to transport stolen livestock in interstate commerce. Sicking has also pleaded guilty to a conspiracy charge and is awaiting sentencing.

In making today’s announcement, U.S. Attorney Ferguson commended the USDA-OIG, the U.S. Secret Service, IRS-CI, and Cleveland County Sheriff’s Office and Iredell County Sheriff’s Office for their investigation of the case. U.S. Attorney Ferguson also thanked the Stanly County District Attorney’s Office, the Packers and Stockyard Division of the USDA, and the Texas Southwestern Cattle Raisers Association Special Rangers for their assistance.

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

A Costa Rica resident was sentenced today to more than 15 years in prison for carrying out a years-long telemarketing scheme that defrauded victims in the United States from a call center in Costa Rica.

According to court documents and evidence presented at trial, Roger Roger, 41, of Costa Rica, led a fraudulent telemarketing scheme in which co-conspirators, who falsely posed as U.S. government officials, contacted victims in the United States to tell them that they had won a substantial “sweepstakes” prize. After convincing victims, many of whom were elderly, that they stood to receive a significant financial reward, the victims were told that they needed to make a series of up-front payments before collecting their supposed prize. Co-conspirators used a variety of means to conceal their true identities, including Voice Over Internet Protocol technology, which made it appear as though they were calling from Washington, D.C., and other locations in the United States. Roger recruited and taught others how to mislead victims on the phone and convince them to send money from the United States to Costa Rica for non-existent prizes. The evidence at trial showed that Roger and his co-conspirators stole over $4 million from their hundreds of victims.

In September 2024, Roger was convicted at trial of one count of conspiracy to commit mail and wire fraud, four counts of wire fraud, one count of conspiracy to commit international money laundering, and two counts of international money laundering. At sentencing, Roger was ordered to pay more than $3.3 million in restitution and to forfeit more than $4.2 million.

Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division; U.S. Attorney Russ Ferguson for the Western District of North Carolina; Inspector in Charge Rodney Hopkins of the U.S. Postal Inspection Service’s (USPIS) Atlanta Division; Special Agent in Charge Karen Wingerd of the IRS Criminal Investigation’s (IRS-CI) Detroit Field Office; and Acting Special Agent in Charge James C. Barnacle Jr. of the FBI’s Charlotte Field Office made the announcement.

The USPIS, IRS-CI, and FBI investigated the case.  

Trial Attorneys Andrew Jaco and Amanda Lingwood of the Criminal Division’s Fraud Section are prosecuting the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Costa Rica to secure the arrest and February 2023 extradition of Roger.

If you or someone you know is aged 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. Eastern time. English, Spanish and other languages are available.

CHARLOTTE, N.C. – Two armed carjackers were sentenced to prison today for firearms offenses, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Joseph Jaream Stephens, 23, and Davon Omarion Long, 19, both of Charlotte, were each sentenced to seven years in prison and were ordered to serve five and three years, respectively, under court supervision upon completion of their prison terms.

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

According to court documents and court proceedings, on April 19, 2024, Long and Stephens approached a vehicle being fueled at the pump of a gas station located on W. Sugar Creek, in Charlotte. Armed with a handgun, Stephens approached from the rear driver’s side and confronted the driver, while Long approached the passenger side of the vehicle and pointed a handgun at two passengers. All three victims abandoned the vehicle and fled. After the victims fled Long got into the front passenger seat, and Stephens got into the driver’s seat. Stephens was unable to re-start the vehicle and both defendants fled on foot. Both men were apprehended across the street from the carjacking in a motel parking lot.

On February 14, 2025, the defendants pleaded guilty to possession and brandishing of a firearm in furtherance of a crime of violence. They remain in custody pending transfer to the Federal Bureau of Prisons upon designation of a federal facility.

The ATF and CMPD handled the investigation.

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

CHARLOTTE, N.C. – Quadarius Thomas, 30, of Charlotte, was sentenced today to 54 months in prison followed by two years of supervised release for possession of stolen mail and illegal possession of a firearm, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Chief Johnny Jennings with the Charlotte Mecklenburg Police Department (CMPD) joins U.S. Attorney Ferguson in making the announcement

According to court records and the sentencing hearing, Thomas was previously convicted of conspiracy to commit bank fraud and aggravated identity theft and was sentenced to prison. He was released from custody in 2023 and was placed under court-ordered federal supervision. Court records show that, in November 2023, Thomas was driving a vehicle in Charlotte when he was pulled over for a license plate violation. During the traffic stop, Thomas impersonated another individual and provided the CMPD officers with a driver’s license in that person’s name. Thomas also indicated to the officers that he had a firearm in the vehicle but did not have a concealed carry permit and was issued a citation in the identity theft victim’s name.

In December 2023, CMPD issued a warrant for Thomas’s arrest after it was determined that Thomas had provided false information during the traffic stop. CMPD officers located Thomas, and following a short foot chase, he was taken into custody. A CMPD officer searched a small satchel recovered from Thomas during the arrest and found approximately $7,000 in cash, numerous licenses, and stolen checks, including a stolen $2.4 million U.S. Treasury check. Law enforcement also searched Thomas’s residence and recovered additional fraud-related items, including 10 South Carolina drivers’ licenses and accompanying bank cards, bank checks, a South Carolina ID hologram, a printer, and two laptops.

On August 7, 2024, Thomas pleaded guilty to possession of stolen mail and aiding and abetting and possession of a firearm by a convicted felon. Thomas is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

The Charlotte Mecklenburg Police Department led the investigation with the assistance of Homeland Security Investigations.

Assistant U.S. Attorney Graham Billings with the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – Cole Dixon Moore, 36, of Moore, South Carolina, was sentenced yesterday to two years in prison for illegally distributing oxycodone pills, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Jae W. Chung, Acting Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Chief Trent Conard of the Gastonia Police Department, join U.S. Attorney Ferguson in making today’s announcement.

“Oxycodone on the streets has ruined lives and communities,” said U.S. Attorney Russ Ferguson.  “A licensed pharmacist should not be supplying street dealers and making the problem worse. I am proud of the work of my office in investigating this case, even without all the reporting required by pharmacies.”

According to documents filed with the court, Moore was a licensed pharmacist working at Prescription Plus pharmacy in Gastonia. Law enforcement initiated an investigation into Moore after receiving information that he was selling large quantities of the sedative alprazolam, as well as quantities of the highly addictive and commonly abused narcotic pain medication oxycodone, to a pharmacy customer who did not have a prescription for the drugs. Court documents show that Moore was aware the customer was reselling these pills on the street and, at times, even suggested the price the customer should charge per pill. Investigators also determined that Moore routinely demanded a cut of the customer’s sales, specifically, that Moore had an arrangement with the customer where the customer would pay a portion of the cost of the pills to Moore up front and then pay the balance owed once the drugs were sold. Moore admitted to stealing the pills that he sold from the pharmacy’s stock supply. During the investigation, law enforcement recovered at least 1,500 oxycodone and alprazolam pills that Moore had sold to the customer without a prescription. According to court records, Moore made over $20,000 selling the prescription pills over the course of a few months.

During his pronouncement of Moore’s sentence, U.S. District Judge David C. Norton cited the well-known devastation caused by the plague of oxycodone in this country.

In addition to the prison term imposed, Judge Norton ordered Moore to a term of supervised release. Moore has also forfeited approximately $20,000 in proceeds.

In February, Prescriptions Plus agreed to pay $204,000 to resolve allegations that it violated the recordkeeping requirements of the Controlled Substances Act by failing to adequately monitor the conduct of its staff pharmacist and failing to keep complete and accurate records regarding the receipt and distribution of controlled substances, which negligently enabled the illegal distribution of oxycodone and alprazolam by its staff pharmacist.

The DEA and the Gastonia Police Department investigated the case.

Assistant U.S. Attorney Katherine Armstrong with the U.S. Attorney’s Office in Charlotte prosecuted the government’s criminal case against Moore and Assistant U.S. Attorney Holly Snow handled the civil enforcement action against Prescriptions Plus.

CHARLOTTE, N.C. – Michael Angelo Crank, 44, of Charlotte, was sentenced today to 51 months in prison followed by a term of supervised release for possession of a firearm by a convicted felon, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

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

According to court records and court proceedings, on August 15, 2024, an individual identified as T.T. called 911 to report that Crank had discharged a firearm. Officers responding to the service call arrived at the residence and spoke with Crank, T.T. and three minor children. T.T. told the officers that Crank had fired a gun during an argument while her young children were at home. Officers executed a search warrant on the residence where they located and seized five discharged 9mm shell cases; a 9mm Glock, model 17 semiautomatic pistol; one 30-round magazine for the Glock; one 17-round magazine for the Glock; a 9mm Hi-Point model C9 semiautomatic pistol; and several rounds of various ammunition. Officers also reviewed footage from the home security system. The footage captured Crank following T.T. and her minor children into the front yard with a gun in his hand. During the investigation, law enforcement determined that both seized firearms had been reported stolen. Crank has a criminal history that includes state felony convictions of Assault on a Female and Felony Possession of Cocaine, and a federal conviction in South Carolina for conspiracy and using, carrying, and possessing firearms during, in relation to, and in furtherance of a drug trafficking crime.

On October 29, 2024, Crank pleaded guilty to possession of a firearm by a convicted felon. Thomas is in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

The ATF and CMPD led the investigation. The U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – Joshua Michael Jenkins, 22, of Charlotte, was sentenced yesterday to 88 months in prison followed by three years of supervised release for possession of a machinegun, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

According to court records, on October 30, 2022, a trooper with the North Carolina State Highway Patrol attempted to stop Jenkins for speeding on the interstate. Jenkins refused to stop and instead proceeded to drive at a high rate of speed, reaching speeds of 130 miles per hour. Court documents show that Jenkins exited the highway and ran a red light, where his vehicle collided with four other vehicles at an intersection. Jenkins then fled on foot and ran toward a shopping center. The state trooper ran after Jenkins and observed Jenkins holding a firearm in his hand, which he pointed at the trooper. Jenkins was eventually apprehended.

According to court documents, law enforcement searched a trashcan in a parking lot nearby after a witness saw Jenkins drop something in it. Law enforcement recovered from the trashcan a Glock model 23, .40 caliber pistol, with an affixed machinegun conversion device, commonly referred to as a “Glock Switch.” During the investigation, law enforcement located multiple social media posts of Jenkins posing with firearms that appeared to be equipped with Glock switches, and a video showing muzzle flash and the sound of repeated firing of an automatic weapon.

In making today’s announcement, U.S. Attorney Ferguson thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the North Carolina Highway Patrol, the Charlotte Mecklenburg Police Department, and the Huntersville Police Department for their investigation of the case.

Special Assistant U.S. Attorney (SAUSA) William Wiseman prosecuted the case. Mr. Wiseman is a state prosecutor with the office of the 26th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the District Attorney’s Office and the U.S. Attorney’s Office.

CHARLOTTE, N.C. – Solamon Flores-Garcia, 43, of Mexico, was sentenced to 10 years in prison today for carjacking and possession and brandishing of a firearm in furtherance of a crime of violence, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

James C. Barnacle, Jr., Special Agent in Charge of the FBI in North Carolina, and Chief Rhett Bolen of the Monroe Police Department, join U.S. Attorney Ferguson in making today’s announcement.

According to court documents and court proceedings, on October 24, 2023, Flores-Garcia, a previously deported alien that was residing illegally in Monroe, N.C., went to a neighbor’s home. When the neighbor answered the door, Flores-Garcia pointed a red handgun at the neighbor and demanded her wallet and car keys. Flores-Garcia then drove the victim’s car to La Chiquita Mexican store, where he robbed that establishment. During the robbery, Flores-Garcia pointed a red firearm at the head of the clerk before taking money from the store and fleeing the scene in the stolen vehicle. Flores-Garcia was arrested shortly thereafter.

Flores-Garcia remains in custody pending transfer to the Federal Bureau of Prisons upon designation of a federal facility.

The FBI and CMPD investigated the case. The U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – Jamaris Ladell Smith, 36, of Charlotte, was sentenced to 14 years in prison followed by three years of supervised release today for a string of armed robberies, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

James C. Barnacle, Jr., Special Agent in Charge of the FBI in North Carolina, and Chief Johnny Jennings, of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney Ferguson in making today’s announcement.

According to documents filed with the court, Smith committed six armed robberies in a span of two days. Court records show that, on January 17, 2023, at approximately 11 p.m., Smith entered the Sam’s Mart located at 4627 Sharon Road in Charlotte. Wearing a denim jacket with a fake fur collar, a red and blue knit cap, a black hoody, and blue jeans, Smith pointed a handgun at the store clerk and demanded cash. During the robbery, Smith told the clerk not to get killed over the store, warning her that she would be killed if she made the wrong move. The clerk placed the cash drawer on the counter and Smith took the money and left the scene.

The next day, at approximately 3:30 p.m., Smith, wearing a blue denim jacket with the words “Empty Promises” written on the back, entered the Walgreens located at 7115 E WT Harris Blvd. in Charlotte and asked the clerk to open the register. Smith then pointed a black handgun at the clerk. When the clerk hesitated, Smith began to count down from five to zero. The clerk opened the register and Smith reached over and grabbed the cash. As with the previous robbery, Smith told the clerk he was not playing around and that he would shoot her. After taking the cash, Smith left the scene.

On the same day, at approximately 8:30 p.m., Smith, wearing the same denim jacket with the words “Empty Promises” written on the back, entered the CVS located at 6110 The Plaza, in Charlotte. Smith stood at the empty counter until the clerk came from the back to help him. At that point, Smith pulled out a gun and said, “Don’t move and don’t scream. Give me everything you got.” The clerk opened the store register and gave Smith cash. Smith then fled the scene in a vehicle.

Later the same evening, a little after 11:00 p.m., Smith, wearing a denim jacket with a fake fur collar, a red and black knit cap, and a black hoody, entered the Circle K located at 4474 Randolph Road, in Charlotte. Smith pointed a black handgun at the store clerk, telling him to empty the register. Smith grabbed the cash from the register and left.

The next day, on January 19, at approximately 1:20 a.m., Smith, wearing the same outfit as the day prior, entered the 7-Eleven located at 8101 Old Concord Road in Charlotte, pointed a handgun at the clerk and stated, “it’s not worth it, give me all the money.” Smith took the store’s cash and left.

U.S. v. Jamaris Ladell Smith – January 19, 2023, Armed Robbery of 7-Eleven Store

Then a few hours later, at approximately 6:05 a.m., Smith entered the Burger King located at 4709 Sharon Road, in Charlotte, pointed a gun at an employee, forced her into the office and demanded money from the cash registers. Smith took the cash and fled in a silver SUV.

Smith was arrested later the same day after investigators reviewed surveillance videos from the robberies and identified him as the robber. Distinctive articles of clothing Smith wore during the robberies, including the jacket with the writing on the back, were recovered from Smith’s residence. Also, the firearm Smith used during the robberies was found in Smith’s vehicle.

On February 16, 2024, Smith pleaded guilty to six counts of Hobbs Act robberies and brandishing a firearm during, in relation to, and in furtherance of a crime of violence. He remains in custody pending transfer to the Federal Bureau of Prisons upon designation of a federal facility.

In sentencing Smith to a lengthy prison term, U.S. District Judge Max O. Cogburn Jr. noted the need to promote respect for the law and to protect the public.

The FBI and CMPD investigated the case.

Assistant U.S. Attorney Dana Washington with the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – The leader of a multimillion-dollar bank fraud scheme and one of his co-conspirators were sentenced to prison today, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Kotto Yaphet Paul, 50 of Waxhaw, N.C., was ordered to serve 15 years in prison followed by five years of supervised release. Latoya Tameika Ford, 50, of Covington, Georgia, was sentenced to 27 months in prison followed by three years of supervised release. Both Paul and Ford pleaded guilty to conspiracy to commit wire fraud and bank fraud. Paul also pleaded guilty to money laundering and aiding and abetting.

A third co-conspirator, Bruce Howard Marko, 66, of Charlotte, was sentenced in April to 12 months and a day in prison followed by two years of supervised release and was ordered to pay restitution in the amount of $1.5 million for his role in the scheme. A fourth individual charged in this case, Love Norman, of West Palm Beach, Florida, has pleaded guilty to conspiracy to commit wire fraud and bank fraud and is awaiting sentencing.

Four additional defendants were previously convicted of bank fraud conspiracy for their involvement in the scheme. Amrish D. Patel was sentenced to 15 months in prison. Dwight A. Peebles, Jr. was sentenced to 18 months in prison. Denise Woodard was ordered to serve 36 months in prison, and Derrick L. Harrison, was sentenced to a year and a day in prison. The defendants were also ordered to pay restitution ranging from $620,000 to more than $3.1 million.

According to filed court documents and court proceedings, beginning in 2018, the co-conspirators executed a scheme that defrauded at least 17 federally insured financial institutions of more than $17 million in fraudulent loans. Paul, who was the organizer and leader of the scheme and the primary beneficiary of the fraud conspiracy, relied on a network of co-conspirators that included Ford, to prepare and submit the fraudulent loan applications to financial institutions and facilitate the fraud. The fraudulent loans were of several types, including business loans purportedly for the purchase of equipment, land development loans, and residential mortgage loans. To secure the loans from the financial institutions, Paul and his co-conspirators made material misrepresentations on the loan applications and provided fraudulent documentation, including false income and employment information; financial statements; bank statements; and tax returns. The loan applications also contained misrepresentations about the purpose of the loans and the operations of the relevant businesses.

Based on the fraudulent loan applications, Paul and his co-conspirators secured at least 42 loans from the victim financial institutions. Contrary to information provided on the loan applications about the purposes of the loans, the defendants used the loan proceeds to purchase real estate, cover unrelated business expenses, make investments, make payments toward earlier loans, and pay for personal expenditures.

According to court documents, Paul engaged in money laundering in furtherance of the fraud and executed monetary transactions using funds derived from the criminal scheme. For example, in 2020, Paul wired nearly $400,000 to a title insurance company that Norman used to purchase a home in Florida.

Court documents show that the defendants defaulted on most of the loans, causing substantial losses to the victim financial institutions that issued the loans.

In making today’s announcement, U.S. Attorney Ferguson credited the Office of the Inspector General of the Board of Governors of the Federal Reserve System, the Office of the Inspector General for the Federal Housing Finance Agency, the Office of the Inspector General for the Federal Deposit Insurance Corporation, the Federal Bureau of Investigation in Charlotte, and the Charlotte Field Office of the Internal Revenue Service’s Criminal Investigation, for the investigation of this case.

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

CHARLOTTE, N.C. – Yusef Reynolds, 34, formerly of Delaware, was sentenced today to 27 years in prison followed by a lifetime of supervised release for sex trafficking of a minor by force, fraud, or coercion, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Reynolds was on supervised release for a prior federal sex trafficking conviction in Delaware when he met and lured the underage victim, forcing her to engage in commercial sex.

James C. Barnacle, Jr., Special Agent in Charge of the FBI in North Carolina, and Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department (CMPD) join U.S. Attorney Ferguson in making today’s announcement.

“Today’s lengthy sentence is appropriate for a defendant who while on supervised release for sex trafficking a minor engaged in the same behavior—using violence and physical abuse to control a minor and force her to engage in sexual acts for his profit,” said U.S. Attorney Ferguson.  “I am proud of the hard work of my office to protect children and hold accountable those who prey on them.”

“After serving federal prison time for sex trafficking an underage girl, Yusef Reynolds went right back to his predatory ways. Once again, he lured a victim through social media and exploited her for his own profit. The FBI will continue to work with our partners and prioritize punishing those who abuse children,” said Special Agent in Charge Barnacle.

According to court documents, in 2012, Reynolds was convicted of federal charges for sex trafficking a minor and illegal possession of firearms in Delaware and was sentenced to 10 years in prison. Reynolds was released in 2021 and was placed under federal supervision. Court records show that, from December 2021 through January 2022, while on federal supervised release, Reynolds sex trafficked a 16-year-old runaway from Massachusetts he met online. According to court documents, Reynolds used Facebook to contact the minor, who at the time was in North Carolina. Using promises of a better life to lure the victim, Reynolds convinced her to join him in Delaware even though he knew the victim was underage.

Filed court documents show that Reynolds sent two other individuals to pick up the minor victim and bring her to Delaware. Once there, Reynolds immediately began to sex traffic the minor. Reynolds took pictures of the minor and posted them on a website advertising for commercial sex. After that, Reynolds, either himself or through other individuals he knew or controlled, booked commercial sex appointments for the victim and took all the money the victim earned from the sexual encounters. During that time, Reynolds used a combination of physical and sexual violence, threats, and verbal abuse to force the victim to engage in commercial sex acts and plied the victim with drugs to further coerce her to continue to engage in the commercial sex trade.

On March 29, 2024, Reynolds pleaded guilty to sex trafficking of a minor by force, fraud, or coercion. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making the announcement, U.S. Attorney Ferguson credited the FBI’s Child Exploitation and Human Trafficking Task Force for its investigative work and thanked CMPD and the Gaston County Sheriff’s Office, both task force members, for their coordination and partnership with the FBI, which led to today’s outcome. FBI Child Exploitation and Human Trafficking Task Forces operate in nearly every FBI field office. The most effective way to investigate human trafficking is through a collaborative, multi-agency approach among federal, state, local, and tribal partners. The ultimate goal of the task forces is to recover victims and investigate traffickers at the state and federal level.

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

Two Chinese nationals and a New York woman, all members of a prolific Chinese money laundering organization (CMLO), pleaded guilty today to money laundering charges involving drug trafficking proceeds. They are the last of six total defendants charged in the indictment to plead guilty.

According to court documents, Enhua Fang, 38, and Jianfei Lu, 30, both of China, and Shu Jun Zhen, 36, of Staten Island, New York, were members of the CMLO that laundered over $92 million in illicit funds, including proceeds from the importation and distribution of illegal drugs into the United States, primarily through Mexico.

According to court documents, Fang was an organizer within the CMLO who directed a group of couriers to pick up bulk cash proceeds from unlawful activities, including narcotics trafficking, from individuals throughout the United States. The couriers then deposited these illicit funds, which generally exceeded $10,000, into shell company bank accounts controlled by the CMLO in order to conceal the nature of the illicit funds. Fang used multiple cellphones, changing phone numbers regularly, and several encrypted messaging applications to communicate with the CMLO’s foreign-based operatives and U.S.-based drug traffickers. Pursuant to her plea agreement, Fang admitted that she was personally responsible for laundering at least $90 million of illicit funds in less than two years. Fang further admitted that she knew funds laundered in the conspiracy included drug trafficking proceeds or funds intended to promote drug trafficking.

According to court documents, Lu collected drug trafficking proceeds from U.S.-based drug traffickers and deposited those illicit funds, using both real and fake identities, into shell company bank accounts registered by other members of the CMLO. Lu also served as a manager for the CMLO: he coordinated bulk cash pickups and deposits while Fang was in China and procured fake driver’s licenses for the CMLO’s couriers, which were used to deposit illicit funds at major U.S. banks. Pursuant to his plea agreement, Lu admitted that he had actual knowledge and involvement in the laundering of between $25 million and $65 million in illicit funds. Lu further admitted that he knew funds laundered in the conspiracy included drug trafficking proceeds.

According to court documents, Zhen, at Fang’s and Lu’s direction, picked up and deposited — using both her real and fake identities — nearly $25 million of illicit bulk cash, including drug trafficking proceeds. Pursuant to her plea agreement, Zhen admitted that she knew funds laundered in the conspiracy included drug trafficking proceeds or funds intended to promote drug trafficking.

Fang and Zhen each pleaded guilty to one count of money laundering conspiracy, one count of money laundering to conceal the nature, location, source, ownership, and control of the illicit proceeds, and one count of monetary transaction involving criminally derived property greater than $10,000. Lu pleaded guilty to one count of money laundering conspiracy, two counts of money laundering to conceal the nature, location, source, ownership, and control of the illicit proceeds, and two counts of monetary transaction involving criminally derived property greater than $10,000.

The defendants face a maximum penalty of 20 years in prison on each of the conspiracy and money laundering counts and a maximum of 10 years in prison on each of the monetary transaction counts. A federal district court judge will determine their respective sentences after considering the U.S. Sentencing Guidelines and other statutory factors.

All members of the CMLO charged to date have pleaded guilty, including the three who pleaded guilty on April 30, 2025; as a result, this particularly prolific cell within the CMLO has been completely dismantled.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, U.S. Attorney Russ Ferguson for the Western District of North Carolina, Acting Special Agent in Charge Jae W. Chung of the Drug Enforcement Administration (DEA) Atlanta Division, and Criminal Investigation Chief Guy Ficco of IRS Criminal Investigation (IRS-CI) made the announcement.

The DEA Charlotte District Office and the IRS-CI Charlotte Field Office are investigating the case.

Acting Assistant Deputy Chief Mingda Hang, Acting Deputy Chief Melanie Alsworth, and Trial Attorney Jayce Born of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorney Alfredo De La Rosa for the Western District of North Carolina are prosecuting the case.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhoods.

CHARLOTTE, N.C. – Two Chinese nationals and a New York woman, all members of a prolific Chinese money laundering organization (CMLO), pleaded guilty today to money laundering charges involving drug trafficking proceeds, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. They are the last of six total defendants charged in the indictment to plead guilty.

According to court documents, Enhua Fang, 38, and Jianfei Lu, 30, both of China, and Shu Jun Zhen, 36, of Staten Island, New York, were members of the CMLO that laundered over $92 million in illicit funds, including proceeds from the importation and distribution of illegal drugs into the United States, primarily through Mexico.

According to court documents, Fang was an organizer within the CMLO who directed a group of couriers to pick up bulk cash proceeds from unlawful activities, including narcotics trafficking, from individuals throughout the United States. The couriers then deposited these illicit funds, which generally exceeded $10,000, into shell company bank accounts controlled by the CMLO in order to conceal the nature of the illicit funds. Fang used multiple cellphones, changing phone numbers regularly, and several encrypted messaging applications to communicate with the CMLO’s foreign-based operatives and U.S.-based drug traffickers. Pursuant to her plea agreement, Fang admitted that she was personally responsible for laundering at least $90 million of illicit funds in less than two years. Fang further admitted that she knew funds laundered in the conspiracy included drug trafficking proceeds or funds intended to promote drug trafficking.

According to court documents, Lu collected drug trafficking proceeds from U.S.-based drug traffickers and deposited those illicit funds, using both real and fake identities, into shell company bank accounts registered by other members of the CMLO. Lu also served as a manager for the CMLO: he coordinated bulk cash pickups and deposits while Fang was in China and procured fake driver’s licenses for the CMLO’s couriers, which were used to deposit illicit funds at major U.S. banks. Pursuant to his plea agreement, Lu admitted that he had actual knowledge and involvement in the laundering of between $25 million and $65 million in illicit funds. Lu further admitted that he knew funds laundered in the conspiracy included drug trafficking proceeds.

According to court documents, Zhen, at Fang’s and Lu’s direction, picked up and deposited — using both her real and fake identities — nearly $25 million of illicit bulk cash, including drug trafficking proceeds. Pursuant to her plea agreement, Zhen admitted that she knew funds laundered in the conspiracy included drug trafficking proceeds or funds intended to promote drug trafficking.

Fang and Zhen each pleaded guilty to one count of money laundering conspiracy, one count of money laundering to conceal the nature, location, source, ownership, and control of the illicit proceeds, and one count of monetary transaction involving criminally derived property greater than $10,000. Lu pleaded guilty to one count of money laundering conspiracy, two counts of money laundering to conceal the nature, location, source, ownership, and control of the illicit proceeds, and two counts of monetary transaction involving criminally derived property greater than $10,000.

The defendants face a maximum penalty of 20 years in prison on each of the conspiracy and money laundering counts and a maximum of 10 years in prison on each of the monetary transaction counts. A federal district court judge will determine their respective sentences after considering the U.S. Sentencing Guidelines and other statutory factors.

All members of the CMLO charged to date have pleaded guilty, including the three who pleaded guilty on April 30, 2025; as a result, this particularly prolific cell within the CMLO has been completely dismantled.

U.S. Attorney Ferguson is joined in making the announcement by Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, Acting Special Agent in Charge Jae W. Chung of the Drug Enforcement Administration (DEA) Atlanta Division, and Special Agent in Charge Donald “Trey” Eakins, IRS Criminal Investigation, Charlotte Field Office.

The DEA Charlotte District Office and the IRS-CI Charlotte Field Office are investigating the case.

Assistant U.S. Attorney Alfredo De La Rosa for the Western District of North Carolina, Acting Assistant Deputy Chief Mingda Hang, Acting Deputy Chief Melanie Alsworth, and Trial Attorney Jayce Born of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhoods.

CHARLOTTE, N.C. – Three Charlotte men are facing federal charges for conspiring to steal and transport across state lines dozens of luxury and high-end vehicles worth well over $5 million, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. A criminal indictment was filed in June and unsealed today in federal court.

Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney Ferguson in making today’s announcement.

Aquanzae Jamal Switzer, 24, Da’Quante Antwone Banks, 24, and Trajan Dakiel Mack, 26, all of Charlotte, are charged with conspiracy to transport, possess, and sell stolen vehicles in interstate commerce, possession of a stolen vehicle, and interstate transportation of a stolen vehicle.

“This multi-state automobile theft ring was organized and sophisticated,” said U.S. Attorney Russ Ferguson. “Organized crime has no place in the Western District of North Carolina, and I am grateful to our law enforcement partners for disrupting this operation.”

The indictment alleges that, between 2022 and April 2024, the defendants engaged in a conspiracy to steal dozens of high-end motor vehicles worth millions of dollars from individuals, car dealerships, and other businesses located in North Carolina, South Carolina, Virginia, Georgia, and Tennessee. To maximize their profits, Switzer, Banks, and Mack allegedly targeted luxury models by BMW, Land Rover, and Mercedez-Benz, as well trucks, sports utility vehicles, and high-end horsepower models manufactured by Chevrolet, Ford and Jeep.

The defendants allegedly stole multiple vehicles at once, generally at night, using key fob programmers, and conspired with other individuals who served as drivers of the stolen vehicles. For example, the indictment alleges that the defendants, aided and abetted by others, stole 12 vehicles from a car dealership located in Lillington, North Carolina. To avoid detection, the co-conspirators used temporary and fictitious vehicles tags on the stolen vehicles, removed the GPS navigation and tracking systems from the vehicles, and changed the appearance of the stolen vehicles soon after the thefts.

According to allegations in the indictment, the co-defendants and their co-conspirators often sold the stolen vehicles at prices significantly below their retail value and kept some of the vehicles for personal use and to further facilitate the scheme.

The conspiracy charge carries a maximum penalty of five years in prison. The charges of possession of a stolen vehicle and interstate transportation of a stolen vehicle each carry a maximum penalty of 10 years in prison. If convicted, a federal district court judge will determine any sentence imposed after considering the U.S. Sentencing Guidelines and other statutory factors.

This is the sixth indictment filed in the U.S. District Court in Charlotte for federal offenses involving the interstate theft of vehicles since 2023. Previously, federal charges were filed against three Charlotte men for conspiring to steal luxury vehicles and transporting them across state lines. A Charlotte man was indicted for stealing high-end vehicles, including several vehicles from the Charlotte Douglas International Airport. Two individuals were charged for a scheme that involved buying and selling stolen vehicles from across the country. Five individuals were indicted for stealing luxury vehicles from dealerships throughout the United States, and two additional individuals were indicted for orchestrating high-end auto thefts from businesses in South Carolina.

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

U.S. Attorney Ferguson commended the Secret Service and CMPD for their investigation of this case and thanked the FBI and the National Insurance Crime Bureau and Homeland Security Investigations for their assistance with the prior prosecutions. 

Assistant U.S. Attorneys William Bozin and Daniel Ryan of the U.S. Attorney’s Office in Charlotte are prosecuting the cases.

CHARLOTTE, N.C. – U.S. Attorney Russ Ferguson is joined today by South Carolina Attorney General Alan Wilson, North Carolina Attorney General Jeff Jackson, FBI Special Agent in Charge James C. Barnacle, Jr., and representatives of IRS-Criminal Investigation and the Department of Health and Human Services Office of the Inspector General, to announce the results of a health care fraud crackdown that led to criminal charges filed against nine individuals involved in separate health care fraud schemes that allegedly defrauded the North Carolina and the South Carolina Medicaid Programs of millions of dollars.

The announcement was made as part of the Justice Department’s national healthcare fraud takedown that resulted in 324 defendants being charged in connection with more than $14.6 billion in alleged fraud.

“The United States spends almost $5 trillion per year on healthcare, and about 45% of that is from government insurance programs,” said U.S. Attorney Ferguson. “Fraudsters not only drain theses taxpayer funded insurance programs that millions rely upon and every taxpayer contributes to, but, in the process, exploit patients, and increase healthcare costs for everyone. We’re working with our federal and state partners at all levels to uncover and dismantle healthcare fraud schemes, protect public dollars, and bring to justice those who abuse taxpayer-funded healthcare systems for personal gain.”

“Healthcare fraud isn’t a crime that only exists on paper. These schemes drain taxpayer-funded government programs designed to assist citizens who may not otherwise be able to afford healthcare. The FBI and our partners work tirelessly to stop people from defrauding the government, protect the integrity of the programs for those who truly need it, and bring offenders to justice,” said FBI Charlotte Acting Special Agent in Charge James C. Barnacle Jr.

“Medicaid fraud not only steals money from the taxpayer but also means that many people, including children, may not get the health care they need. My office has been working diligently to hold these criminals accountable and we will continue to focus on rooting out waste, fraud, and abuse,” said South Carolina Attorney General Alan Wilson.

“This North Carolina business owner allegedly stole almost $2 million in taxpayer money from our Medicaid program under the guise of providing health care services for people who need them,” said North Carolina Attorney General Jeff Jackson. “I’m thankful to NCDOJ’s Medicaid Investigations Division for helping bring her to justice alongside state and federal partners. We’ll keep working to hold anyone who defrauds North Carolinians accountable.”

“Healthcare fraud not only victimizes patients, but it also misuses taxpayer dollars and endangers the livelihood of healthcare programs,” said Acting Special Agent in Charge Richard Gaskins, Charlotte Field Office, Internal Revenue Service Criminal Investigation. “We remain committed to uncovering misconduct in use of healthcare funds and holding offenders accountable. Together with federal and state law enforcement partners, IRS-CI will continue to pursue anyone trying to exploit federal programs for personal gain.”

“The alleged actions of these individuals represent a blatant abuse of the Medicaid program for personal gain, violating the public trust and diverting resources from those who need them most. This conduct undermines the integrity of a vital healthcare safety net designed to serve our most vulnerable citizens,” said Kelly J. Blackmon, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG remains committed to working together with our law enforcement partners to identify and investigate those individuals who allegedly engaged in fraud targeting our federal health care programs.”

“Every taxpayer dollar that is lost to waste, fraud and abuse through a public health care program is a resource that could have been used to serve another purpose in our community,” said South Carolina Department of Health and Human Services Director Eunice Medina. “When fraudsters target state Medicaid programs, they not only target taxpayer funds, but may also compromise access to medical services for the extremely vulnerable populations served by South Carolina’s Medicaid program. SCDHHS is grateful for our collaboration with the South Carolina Attorney General’s and U.S. Attorney’s Offices and looks forward to further collaboration with our investigatory partners as we work to eliminate waste, fraud and abuse.”

South Carolina Medicaid Fraud Cases – U.S. v. Saunders et al. & U.S. v. Hill

Federal criminal charges were filed in the Western District of North Carolina against eight individuals that allegedly conspired to defraud the South Carolina Medicaid Program (SC Medicaid) of more than $21 million by filing false and fraudulent reimbursement claims for behavioral health care services that were either inflated or not provided at all. It is alleged that these individuals bought and sold personal identifying information (PII) of SC Medicaid beneficiaries, and submitted reimbursement claims for patients that never knew their information was being used and never received the services.

The seven individuals charged with conspiracy to commit health care fraud and to pay and receive illegal kickbacks are:

• Donald Calvin Saunders, 62, of Charlotte. Saunders is also charged with six counts of health care fraud; one count of unlawful purchase of beneficiary identification numbers; one count of conspiracy to commit money laundering; and three counts of money laundering.
• Vanessa Ragin-Boatright, 59, of Manning, South Carolina. Boatright is also facing two counts of health care fraud; one count of unlawful purchase of beneficiary identification numbers; and one count of conspiracy to commit money laundering.
• Dajuan Strickland, 47, of Charlotte and Buffalo, New York. Strickland is also charged with three counts of health care fraud; two counts of unlawful purchase of beneficiary identification numbers; one count of conspiracy to commit money laundering; and three counts of money laundering.
• Cynthia Jenkins Harris, 60, of Elgin, South Carolina. Harris is also facing one count of health care fraud and one count of conspiracy to commit money laundering.
• Latarsa Hitchcock, 56, of Jacksonville, North Carolina.
• Stephanie Corbett, 59, of Jonesboro, Georgia.
• Karen McClary, 51, of Kingstree, South Carolina.

David Corey Hill, age 54, of Concord, North Carolina, who was also part of the scheme was charged separately via a criminal bill of information with conspiracy to commit health care fraud and money laundering. Hill has agreed to plead guilty and is expected to appear in federal court for a plea hearing in the days ahead.

According to allegations contained in charging documents and other court records, from 2017 to 2024, the defendants conspired with each other and others to defraud the SC Medicaid program by submitting false and fraudulent reimbursement claims for behavioral health services that were not rendered as claimed and were tainted by illegal kickbacks and bribes. To carry out the scheme, the co-conspirators allegedly filed thousands of fraudulent claims using a network of companies in the Charlotte area and elsewhere. SC Medicaid beneficiaries are permitted to receive behavioral health services from qualified North Carolina providers located within a 25-mile radius from the South Carolina border.

The indictment alleges that Saunders was an organizer and leader of the scheme to defraud SC Medicaid and to pay and receive illegal kickbacks and bribes for Medicaid beneficiary names and identification numbers used to facilitate the scheme. As the leader of the conspiracy, Saunders allegedly helped other conspirators, including Hitchcock, Strickland, and Hill, create and operate billing companies or companies that provided behavioral health care services used to file fraudulent reimbursement claims with SC Medicaid. In exchange, Saunders received a portion of the illegal proceeds generated by those companies. Other individuals in the conspiracy, including Jenkins, McClary, and Corbett, supported the scheme by selling the PII of SC Medicaid beneficiaries; suppling licensed behavioral health professionals’ National Provider Identification (NPI) numbers; creating fictitious service notes for SC Medicaid beneficiaries who purportedly received services; or submitting fraudulent claims to SC Medicaid for reimbursement.

The indictment alleges that the beneficiaries whose names and PII were purchased and sold did not know that Medicaid claims had been submitted in their name and did not receive the services as represented to SC Medicaid.

In addition to using stolen PII of SC Medicaid beneficiaries, during the investigation the South Carolina Attorney General’s Vulnerable Adults and Medicaid Provider Fraud unit (SAG VAMPF), with the Assistance of the South Carolina Department of Health and Human Services (SCDHHS), created fictitious Medicaid beneficiaries which they then sold to the co-conspirators. The indictment alleges that the co-conspirators used the fictitious beneficiaries’ numbers to file fraudulent reimbursement claims with SC Medicaid for services that were never rendered.

It is further alleged that the co-conspirators paid bribes and illegal kickbacks to other individuals involved in the scheme, including providers who allowed the defendants to use their NPIs in connection with the filing of fraudulent claims. However, according to the indictment, many of the NPIs used by the co-conspirators belonged to professionals who were not part of the scheme but were tricked into providing their NPIs and credentials to the co-conspirators as part of an application for a job that never materialized. In the state of South Carolina, rendering providers of mental health services are licensed by the South Carolina Department of Labor Licensing and Regulations (LLR) and most are licensed independent practitioners.

The indictment alleges that the defendants were collectively paid over $21 million dollars as a result of the health care fraud scheme. It is further alleged that the defendants engaged in a money laundering conspiracy and conducted financial transactions designed to conceal and disguise the nature and source of the payments. For example, it is alleged that kickback agreements and payments were disguised as consulting contracts, payroll, and other seemingly legitimate expenses.

If convicted, the defendants face a maximum statutory sentence of five years in prison on the healthcare fraud conspiracy count, ten years in prison on the healthcare fraud counts, twenty years in prison on the money laundering conspiracy count, and ten years in prison on the money laundering counts. Ultimately, their sentences will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.

North Carolina Medicaid Fraud Case: U.S. v. Crystal Jackson

It was also announced today that Crystal Sherrell Jackson, 39, of Charlotte, is charged with health care fraud and money laundering for submitting fraudulent reimbursement claims to the North Carolina Medicaid Program (NC Medicaid) for psychotherapy services and urine drug testing. The bill of information alleges that Jackson, who held herself out as a licensed clinical addiction specialist, owned and managed Jackson Consulting Services LLC (JCS). Jackson licensed JCS as a mental health agency, clinical laboratory, and consulting business registered with NC Medicaid to provide services to eligible beneficiaries.

According to allegations in the bill of information, between January 2020 and June 2024, Jackson billed NC Medicaid over $1.9 million and was paid over $1.6 million for fraudulent claims for drug testing and psychotherapy sessions that were not medically necessary or never rendered.

To carry out the scheme, Jackson and her associates allegedly obtained and used the personal information of eligible persons, including their names, addresses, dates of birth, and NC Medicaid beneficiary numbers. In many cases, the beneficiaries did not know their information had been used to file the fictitious reimbursements claims and never received the services for which Jackson billed NC Medicaid. In addition, more than a dozen of the beneficiaries whose information Jackson used to bill NC Medicaid were incarcerated or deceased at the time the alleged services were provided.

According to the bill of information, in addition to billing NC Medicaid for non-existent psychotherapy services, JCS also falsely billed for unnecessary urine drug testing. To maximize criminal proceeds from the scheme, Jackson operated a fraudulent lab licensed under the Clinical Laboratory Improvement Amendments (CLIA), which enabled Jackson to bill NC Medicaid for the highest eligible drug testing.

In addition to health care fraud, Jackson is also charged with transactional money laundering for using criminal proceeds in furtherance of the scheme and to buy a vehicle and pay thousands of dollars for rent, food delivery, and ride sharing.

This is the latest charge involving fraudulent billing schemes targeting NC Medicaid. To date, a multiple defendants have been convicted of health care fraud and sentenced to prison for defrauding NC Medicaid, including a Greensboro clinic owner who was sentenced to 52 months in prison for a scheme that defrauded the NC Medicaid of more than $4.7 million in fraudulent claims for behavioral services.

Civil Enforcement Actions

In addition to the criminal charges, the U.S. Attorney’s Office also announced recent civil enforcement actions that have resulted in settlements and judgments of nearly $5 million to resolve False Claims Act allegations.

In May, Nirvana Hyperbaric Institute, LLC (Nirvana), owner Roger Hunter, and Dr. Herminia De Guzman Ferreras, agreed to pay $200,000 to resolve allegations that they violated the False Claims Act by knowingly submitting claims to Medicare for hyperbaric oxygen therapy treatments that were not adequately supervised by a physician.

Also last month, Charlotte Clinic Owner Steven Osbey of Kernersville, N.C., agreed to settle allegations of NC Medicaid fraud, and during the course of settlement negotiations has agreed for entry of judgment against him for over $4.7 million in favor of the United States and the State of North Carolina over allegations that a clinic he co-owned improperly charged NC Medicaid for physician home visits that never occurred.

In January, the U.S. Attorney’s office and the State of North Carolina filed a False Claims Act complaint against Benson I. Ejindu alleging that he knowingly submitted or caused the submission of false claims to NC Medicaid, through a durable medical equipment business he operated, for more expensive medical supplies than were provided to Medicaid beneficiaries.

Last fall, the U.S. Attorney’s Office announced that LabXperior Corporation and its owner, Tina Ball, paid $235,000 to resolve allegations that they violated the Federal False Claims Act and North Carolina False Claims Act by knowingly billing NC Medicaid for urine drug tests that were medically unnecessary and resulted from violations of the Anti-Kickback Statute.

“Even where it is not criminal, we will pursue false payments by civil action to recover taxpayer money and protect our American healthcare system,” said U.S. Attorney Ferguson.

In making today’s announcement, U.S. Attorney Ferguson thanked the Office of the South Carolina Attorney General VAMPF, the North Carolina Attorney General’s Medicaid Investigations Division, the FBI in North Carolina, IRS-CI, HHS-OIG, and SCHHS for their investigative efforts and ongoing coordination that led these cases, and other federal, state, and local law enforcement agencies that participated in this effort.

U.S. Attorney Ferguson also thanked the Assistant U.S. Attorneys in the criminal and civil divisions for their work on the cases and recognized Special Assistant U.S. Attorney Kristina Fleisch with the North Carolina Medicaid Division who is prosecuting the case against Crystal Jackson.

An indictment or information is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If you suspect Medicare or Medicaid fraud, please report it by phone at 1-800-HHS-TIPS (1-800-447-8477), or via email at HHSTips@oig.hhs.gov.

To report Medicaid fraud in North Carolina, call the North Carolina Medicaid Investigations Division at 919-881-2320 or fill out an online complaint form.

To report suspected Medicaid fraud in South Carolina, contact the South Carolina Department of Health and Human Services via the toll-free tip line at 1-888-364-3224.

TRICARE fraud can be reported here.

Fraud against the U.S. Department of Veterans Affairs healthcare system can be reported at www.vaoig.gov/hotline.

CHARLOTTE, N.C. – Terry Sherwood Slade, 55, was sentenced to 188 months in prison followed by three years of supervised release today after he was convicted of Hobbs Act robbery and possession of a firearm by a felon, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Slade was also ordered to serve an additional 12 months and a day for violating his supervised release.

According to filed court documents and today’s sentencing hearing, on November 20, 2023, while Slade was under federal supervision for a prior robbery conviction, he entered the House of Clouds Smoke Shop located in Charlotte and requested cigarettes from the store’s employee. When the store employee opened the register, Slade demanded money and threatened to shoot her. Slade then put his hand in his jacket pocket and gestured toward the employee. He then walked behind the counter into the employee area and took money from the register along with cigarettes and fled the scene.

According to court records, on December 3, 2023, Slade entered Nick’s Arcade located in Charlotte. Upon entering the store, Slade approached a security guard and grabbed her firearm.  Following a brief struggle between Slade, the security guard, and a cashier, Slade grabbed the security guard’s firearm and pointed the weapon at the two employees. While armed, Slade went to the arcade’s private office and stole cash located in a safe before fleeing the scene.

On December 13, 2023, an individual contacted the Charlotte Mecklenburg Police Department (CMPD) to report he had been shot at by a man with whom he’d previously had an argument. During the investigation, the victim identified Slade as the shooter. CMPD officers arrested Slade. At the time of the arrest, Slade possessed the firearm he’d taken from security guard during the arcade store robbery. CMPD analyzed a cartridge collected at the scene of the reported shooting and determined it matched the security guard’s firearm found on Slade when he was arrested.

In September 2024, Slade pleaded guilty to Hobbs Act robbery and possession of a firearm by a felon. Court records indicate that Slade has a prior federal conviction for Hobbs Act robbery, and multiple state felony convictions in North Carolina, including for Assault With a Dangerous Weapon with Intent to Kill Inflicting Serious Injury and Common Law Robbery. Slade was sentenced as an armed career criminal.

In making today’s announcement, U.S. Attorney Ferguson credited the Federal Bureau of Investigation and the Charlotte Mecklenburg Police Department for the investigation of this case and thanked the U.S. Probation Office for its assistance.

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

CHARLOTTE, N.C. – Jessica Bailey Sowell, 32, of Charlotte, was sentenced today to 57 months in prison followed by five years of supervised release for bank fraud, aggravated identity theft, and unlawful possession of a firearm, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Sowell was also ordered to pay restitution in the amount of $47,190.25.

Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney Ferguson in making today’s announcement.

According to court records, from March 2023 to February 2024, Sowell devised and executed an identity theft and bank fraud scheme using stolen personal identifying information (PII) of multiple identity theft victims obtained through stolen mail, the internet, and other sources. Sowell created fraudulent identification documents with the stolen PII, which she used at banks, hotels, and retail stores to obtain money and merchandise, and to rent hotel rooms and cars. Over the course of the investigation, law enforcement found letters, bank cards, and checks in Sowell’s possession that belonged to at least 26 victims of identity theft.

According to court records, a federal search warrant was executed at a hotel room where Sowell was staying, where investigators seized one suitcase containing hundreds of pieces of mail with various names and addresses; a second suitcase packed with store tagged merchandise; two handwritten journals with the names and credit information of multiple persons; and 23 driver’s licenses from different states with Sowell’s photograph and the PII of identity theft victims. Investigators also searched a rental vehicle Sowell was using and seized a credit card in the name of an ID theft victim; receipts for merchandise purchased with the victim’s credit card; an identity card printer; multiple blank identity cards; and holographic stickers, among other items.

During the search of Sowell’s hotel room, investigators also found a Taurus G3 9mm handgun, bedazzled with sequins on the barrel. Sowell has a 2021 federal aggravated identity theft conviction and a 2015 state felony conviction for possession with intent to distribute MDA/MDMA and she is prohibited from possessing firearms. 

On August 5, 2024, Sowell pleaded guilty to bank fraud and aiding and abetting, aggravated identity theft and aiding and abetting, and possession of a firearm by a convicted felon. She is in the custody of the U.S. Marshals and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

The Secret Service and CMPD investigated the case, with the assistance of the U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

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

# # # 

CHARLOTTE, N.C. – U.S. Attorney Russ Ferguson announced today that Philip Andrew Douglass, 42, of Pineville, N.C., and a former federal officer, appeared in court this morning to face charges of possession and distribution of child sexual abuse material (CSAM). Chip Hawley, Director of the North Carolina State Bureau of Investigation (SBI), joins U.S. Attorney Ferguson in making today’s announcement.

According to allegations in the criminal indictment that was unsealed in federal court today, from July 24 to August 20, 2024, Douglass knowingly distributed CSAM and possessed and accessed with intent to view CSAM. During the time of the alleged offense, Douglass was an Enforcement and Removal Operations Officer with U.S Immigration and Customs Enforcement. 

“The U.S. Attorney’s Office is committed to holding accountable those who commit crimes involving vulnerable children, especially those serving in positions of public trust,” said U.S. Attorney Ferguson. “I commend the SBI for their investigative work on this case and I thank Homeland Security Investigations for their assistance throughout the investigation.”

“The SBI is dedicated to protecting children from predators and exploitation. I take great pride in the work of our Computer Crimes Unit and our collaboration with federal partners to ensure that those who prey on our children are brought to justice. The SBI will continue its relentless efforts to hold those who exploit our youth accountable. The SBI would like to thank the office of the Inspector General at the U.S. Department of Homeland Security and the United States Attorney's Office, Western District, for their partnership in this case,” said Director Hawley. 

Douglass made his initial appearance before Magistrate Judge David C. Keesler. He was released on bond and subject to electronic monitoring and warrantless searches pursuant to the U.S. Probation Office. 

The SBI is in charge of the investigation. Assistant U.S. Attorney Daniel Cervantes of the U.S. Attorney’s Office in Charlotte is prosecuting the case. The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

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

CHARLOTTE, N.C. – Two members of a drug conspiracy that distributed fentanyl and methamphetamine were sentenced to prison yesterday, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Ashton Durrell Farley, 32, of Hickory, N.C., was sentenced to 235 months in prison followed by five years of supervised release. Thomas Eugene Ikard, 46, of Lenoir, N.C., was sentenced to 60 months in prison followed by four years of supervised release. Farley and Ikard pleaded guilty to conspiracy to distribute and to possess with intent to distribute fentanyl and methamphetamine.

U.S. Attorney Ferguson is joined in making the announcement by Alicia Jones, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Sheriff Donald G. Brown II of the Catawba County Sheriff’s Office, and Chief Reed Baer of the Hickory Police Department.

Two other members of the drug conspiracy were previously sentenced after pleading guilty to conspiracy to distribute and possession with intent to distribute fentanyl and methamphetamine. Dustin Eric Wilson, 35, of Charlotte was sentenced to 10 years in prison followed by five years of supervised release. Harold Marquis Wilfong, 37, of Hickory, was sentenced to 84 months in prison followed by three years of supervised release.

According to court documents and court proceedings, federal charges were filed against the defendants following a 10-month investigation led by the ATF and the Hickory Police Department (HPD), aimed at reducing drug distribution and drug-induced criminal activity in Catawba County and surrounding areas. The drug trafficking ring operated out of Hickory and distributed large quantities of fentanyl and methamphetamine in the area. To identify the drug conspirators and their operations, ATF agents and HPD officers utilized controlled drug purchases, conducted physical surveillance, and executed search warrants. Over the course of the investigation, law enforcement determined that members of the drug ring used several residences either as “stash houses” to store drugs and/or guns, or to conduct drug sales and other drug trafficking activities. One of the alleged stash houses was located two blocks from the federal courthouse in Charlotte.

According to court records, during the investigation, law enforcement seized multiple kilograms of fentanyl, methamphetamine, and marijuana. Law enforcement also seized multiple firearms used by some of the traffickers to support their drug distribution, including an AR-15 rifle and a privately made firearm or “ghost gun,” and ammunition.

In making the announcement U.S. Attorney Ferguson commended the ATF, HPD, and the Catawba County Sheriff’s Office investigation of this case and thanked the U.S. Marshals Service for their invaluable assistance.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

CHARLOTTE, N.C. – Phillip Leon Leggett, 30, of Kings Mountain, N.C., was sentenced yesterday to 102 months in prison followed by three years of supervised release for illegal possession of a firearm, including a “ghost gun,” announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Alicia Jones, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD), join U.S. Attorney Ferguson in making the announcement.

According to court records and court proceedings, in the fall of 2023, CMPD was monitoring an area in Charlotte for criminal activity, when officers observed an individual, later identified as Leggett, who appeared to be concealing a firearm in the front pocket of his sweatshirt. CMPD officers approached Leggett who immediately fled on foot. A foot chase ensued, during which the officers observed two firearms fall from Leggett’s person. The guns came to rest along the defendant’s flight path. One officer stopped to collect the firearms while other officers continued to pursue Leggett until the defendant was apprehended and taken into custody. The recovered firearms were a black Taurus PT111 G2 9mm loaded with a magazine, and an unregistered privately made firearm, commonly known as a “ghost gun,” fitted with a 17-round magazine and a round in the chamber. During the investigation, law enforcement determined that Leggett has a criminal history, including multiple Felony Common Law Robbery convictions, and he is prohibited from possessing firearms or ammunition.

Leggett will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney Ferguson thanked the ATF and CMPD for their investigation of the case. The U.S. Attorney’s Office in Charlotte handled the prosecution.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

CHARLOTTE, N.C. – Marquis Drakeford Bynum, 45, of Charlotte, was sentenced today to 144 months in prison for possession of child sexual abuse material (CSAM) involving a prepubescent minor and violating his federal supervised release, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. also ordered Bynum to serve a lifetime of supervised release, to register as a sex offender after he is released from prison, and to pay $33,000 in restitution.

James C. Barnacle, Jr., Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Ferguson in making the announcement.

As reflected in court records, this case arose from Bynum’s violation of the terms of his federal supervised release imposed following his 2007 conviction for transporting and possessing CSAM. According to court records, on August 16, 2023, the U.S. Probation Office (USPO) conducted a search of Bynum’s residence pursuant to his probationary terms. During the search, probation officers recovered two cell phones and a flash drive. U.S. Probation and the FBI forensically analyzed the evidence and found thousands of images and videos depicting the sexual abuse of children as young as toddlers. New federal charges were filed against Bynum, and on April 10, 2024, he pleaded guilty to possession of child pornography involving minors under the age of 12.

Bynum is in federal custody. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney Ferguson thanked the FBI for its work on the case and commended the USPO for their invaluable assistance investigating a sex offender.

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

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

CHARLOTTE, N.C. – Michelle Wilshire, 50, of Hickory, N.C., was sentenced today to 46 months in prison followed by two years of supervised release for embezzling more than $900,000 from her employer, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

U.S. Attorney Ferguson is joined in making today’s announcement by Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Charlotte Field Office, and Rodney Hopkins, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte.

According to court documents, from 2016 to 2021, Wilshire was employed by a family-owned business located in Conover, N.C., identified as Company A. During the relevant time, Wilshire was in charge of the company’s Comdata account – a third-party payment processing and debit card issuing service – which the company used for fleet management and payment services for its drivers. Wilshire executed the scheme by issuing multiple Comdata prepaid debit cards in her name and in the names of other individuals, including former company employees, fictitious employees, and current employees who were not aware the cards existed. Wilshire then caused Comdata to load funds onto the prepaid debit cards, which she then withdrew via ATM cash withdrawals. Between November 2017, and July 2021, Wilshire withdrew more than $528,000 from prepaid Comdata debit cards.

In addition to the debit card scheme, Wilshire embezzled company funds by using Comdata’s Comchek and Comchek Mobile services to issue checks in the defendant’s name and to make multiple wire transfers into Wilshire’s personal bank account, totaling over $315,000. Wilshire also caused more than $58,000 of the company’s funds to be transferred through Comdata into the bank account of a former company employee.

In addition to the embezzlement scheme, Wilshire also prepared and filed individual income tax returns for tax years 2017 through 2021, which did not include the additional funds Wilshire received through her embezzlement scheme.

On July 15, 2024, Wilshire pleaded guilty to wire fraud and making and subscribing a false tax return.

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

Assistant U.S. Attorney Mike Savage and Special Assistant U.S. Attorney Eric Frick of the U.S. Attorney’s Office in Charlotte prosecuted the case.

CHARLOTTE, N.C. – U.S. Attorney Russ Ferguson announced today that d&b audiotechnik Corporation (D&B) has agreed to pay $2,130,185.14 to resolve allegations that it violated the False Claims Act by certifying in an application for a Paycheck Protection Program (PPP) loan that it had fewer than 300 employees, when it was a U.S. subsidiary of a German corporation with well over 300 employees. As a result of the misrepresentation, d&b audiotechnik obtained a loan that was forgiven by the United States. d&b audiotechnik has agreed to repay the original loan amount, plus a penalty—ultimately paying twice what was originally borrowed.

Congress created the PPP in March 2020 under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The PPP was administered by the Small Business Administration (SBA) and provided forgivable loans to small businesses struggling to pay employees and other expenses during the COVID-19 pandemic. In December 2020, Congress approved funding for a second round of forgivable PPP loans. When applying for PPP loans, borrowers were required to certify that they were eligible for the requested loans and that the information they provided was true and accurate.

This matter arose from a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam case is captioned United States ex rel GNGH2 Inc. v. D&B Audiotechnik Corporation, W.D.N.C. Case No. 1:24-cv-246.

The government’s investigation was led by Assistant U.S. Attorney Seth Johnson.

Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. 

The claims resolved by the settlement are allegations only. There has been no determination of liability. 

ASHEVILLE, N.C. – Jamal Marqui McDaniel, 46, was sentenced today to 180 months in prison followed by five years of supervised release for trafficking methamphetamine and firearms offenses, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

According to court documents and evidence presented during court proceedings, the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Asheville Police Department (APD) launched a joint investigation after receiving information that McDaniel was engaged in the illegal sale of narcotics and firearms in the Asheville area. Over the course of the investigation, McDaniel sold methamphetamine, firearms, and ammunition on multiple occasions to individuals who were cooperating with law enforcement. Court records show that, in total, McDaniel is accountable for distributing nearly half a kilogram of methamphetamine, and illegally selling eight firearms.

McDaniel pleaded guilty February 21, 2025, to distribution of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a felon. He remains in the custody of the U.S. Marshals Service pending placement by the federal Bureau of Prisons.

In making today’s announcement, U.S. Attorney Ferguson thanked the ATF, the DEA, the APD, and the Buncombe Country Sheriff’s Office for their investigation of the case.

Assistant U.S. Attorney Christopher S. Hess of the U.S. Attorney’s Office in Asheville handled the prosecution.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

 

ASHEVILLE, N.C. – David Michael Dakoski, 62, of Charlotte, was sentenced today to 120 months in prison for possession of child sexual abuse material (CSAM), announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Martin Reidinger also ordered Dakoski to serve a lifetime of supervised release, to register as a sex offender after he is released from prison, and to pay $88,000 in restitution.

Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, joins U.S. Attorney Ferguson in making the announcement.

According to court records, this case arose from a probation violation after Dakoski was convicted in a previous case. In January 2018, Dakoski was convicted in federal court of possession and receipt of child pornography and was sentenced to prison. In November 2022, Dakoski was released from prison and began a term of court-ordered supervised release under the supervision of the U.S. Probation Office (USPO). In April 2024, USPO conducted an unannounced home visit at Dakoski’s residence, as part of the terms of his post-release supervision. During the visit, USPO officers found Dakoski’s unauthorized cell phone that contained sexually explicit images of minors. As a result, Dakoski’s supervised release was revoked, and he was taken into custody. He was later sentenced to two years in prison for the supervised release violation on his prior conviction.

Court records show that Dakoski’s contraband cell phone was turned over to HSI. A forensic examination of the phone revealed that Dakoski possessed more than 8,270 images and six videos of CSAM, some of which depicted toddlers and infants being sexually abused. New federal charges were filed against Dakoski, and on April 25, 2024, he pleaded guilty to possession of child pornography involving minors under the age of 12.

Dakoski is in federal custody. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement, U.S. Attorney Ferguson thanked HSI for their investigation of the case and commended the USPO for their invaluable assistance investigating a repeat offender.

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

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

CHARLOTTE, N.C. – Former NASCAR team owner Ronald Devine, 68, of Burke, Virginia, appeared in federal court today and pleaded guilty to failure to pay payroll taxes, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina

Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Charlotte Field Office (IRS-CI), James C. Barnacle, Jr., Acting Special Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Rodney Hopkins, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney Ferguson in making today’s announcement.

According to the plea documents and other court records, Devine was the owner and President of BK Racing, LLC (BK Racing), which operated a NASCAR racing team and owned two NASCAR charters. As the owner, Devine exercised control over BK Racing’s financial affairs, including authorizing the filing and payment of its trust fund taxes, commonly referred to as payroll taxes.

Payroll taxes are withheld from employees’ gross pay for income tax and and to fund Social Security and Medicare. Employers are also required to make contributions to trust fund taxes matching the amounts withheld from their employees’ pay, and to file and pay quarterly taxes.

According to court records, beginning in 2012, Devine caused BK Racing to fail to account for and pay hundreds of thousands of dollars in payroll taxes. Court documents show that, between 2012 and 2017, instead of using the funds held in trust to pay for payroll taxes due, Devine transferred more than $2 million to other businesses and entities that he owned and controlled and used some of the funds to pay for BK Racing’s expenses.

Devine was released on bond following his guilty plea. The charge of failure to truthfully account for and pay over trust fund taxes carries a maximum penalty of five years in prison and a $250,000 fine. A sentencing date has not been set. 

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

Assistant U.S. Attorneys Caryn Finley and Daniel Ryan of the Office in Charlotte are prosecuting the case.

CHARLOTTE, N.C. – In advance of World Elder Abuse Awareness Day, the U.S. Attorney’s Office is joining Age-Friendly Mecklenburg and AARP-Charlotte to co-host the 3rd Annual Walk for Awareness on Wednesday, June 11, 2025, at Freedom Park in Charlotte. Registration for the walk opens at 8:00 a.m. at Shelter #5 (adjacent to bandshell). The walk will begin at 9:00 a.m.

“Elder abuse, neglect, or exploitation affects too many older adults in our communities. Sadly, crimes against the elderly often go unreported. That’s why it’s important to raise awareness about what financial, physical, or emotional abuse looks like and how to seek help. By participating in events like this walk, we can all take an important step toward protecting our elders to ensure that they can live their advanced years with safety and dignity,” said U.S. Attorney Russ Ferguson.

First recognized on June 15, 2006, by the International Network for the Prevention of Elder Abuse and the World Health Organization, World Elder Abuse Awareness Day (WEAAD) seeks to promote a better understanding of the abuse and neglect suffered by millions of older adults, and bring attention to the cultural, social, economic, and demographic factors that contribute to elder abuse.

Financial exploitation is one of the fastest-growing crimes against older adults. According to the FBI’s Internet Crimes Report, a record number of financial losses were reported in 2024, totaling a staggering $16.6 billion. As a group, those over the age of 60 suffered the most financial losses ($4.8 billion) and submitted the most complaints (147,127). North Carolina ranked #9 in the number of complaints submitted to IC3 and #12 in reported financial losses. The report further indicates that investment fraud, tech support scams, extortion schemes and non-payment/non-delivery scams continue to impact older adults disproportionately, and government impersonation, romance scams, and phishing schemes continue to cost millions in losses for the 60+ population.

“It is not that older adults are more gullible,” said U.S. Attorney Ferguson, “it’s that they have built up the assets that make them targets for criminals.”

Through prosecutions, the U.S. Attorney’s Office continues to combat elder fraud involving domestic and transnational perpetrators. Major strides have already been made to that end:

• In May, a California man was indicted for allegedly orchestrating a $4 million investment scheme that targeted elderly and vulnerable victims.        
• In March, a Nigerian national pleaded guilty to laundering millions in criminal proceeds linked to criminal activity, including romance scams that targeted older adults.
• In March, a foreign national was extradited from Spain to face charges in Western North Carolina for an alleged international “tech support” scheme that targeted victims across the United States, including victims who were 55 and older.

In addition to prosecuting elder fraud cases, the U.S. Attorney’s Office, through its Elder Justice Initiative, partners with law enforcement agencies, local governments, and community organizations to ensure that older adults, caretakers, and those who come in frequent contact with the elderly are educated on how to detect, prevent, and report elder fraud, neglect, and abuse.

In May, the U.S. Attorney’s Office participated in Age Friendly Mecklenburg’s annual Scam Jam to help educate older Americans on how to spot the tell-tale signs of potential scams and where to seek help if fraud is suspected. 

The U.S. Attorney’s Office continues its efforts to educate the public by distributing the latest trends in schemes targeting older adults and sharing tips on how to be protected from scammers.

Additional financial schemes targeting older Americans are:

• Tech Support Scams – Convince victims to pay for non-existent problems with their computers.
• Non-Payment/Non-Delivery Scams – Induce victims to pay for goods or services online, but never receive them. A variation of this scheme is victims receiving emails or texts messages that appear to be from legitimate shipping companies (e.g., UPS, FedEx) with fake non-delivery notifications, claiming that payment or additional personal information is required to complete a package delivery.
• Romance Scams – Lull victims into believing they are in an online romantic relationship and their paramour needs money to pay for a visit to the U.S. or for some other purpose.
• Grandparent Scams – Dupe victims into thinking that their grandchildren or other relatives are in trouble and need money right away for bail or another emergency.
• Charity Scams – Solicit donations for fake charities, or by altering or “spoofing” caller IDs to show the name of a real charity on the phone.
• Lottery Scams – Scammers use phone calls, letters, or emails to convince victims that a large fee or taxes must be paid before they can receive lottery winnings.
• Debt Collection Scams – Victims are threatened with arrest and jail time if payment for a fake debt is not made immediately.
• Money Mule/Money Laundering Scams – Convince victims to use their existing or new bank accounts to quickly move funds in and out of those accounts. Generally, the transferred funds are proceeds of other criminal schemes (such as romance schemes) and victims are unwittingly being used to launder the ill-gotten funds.
• Timeshare Scams – Fraudsters target timeshare owners with false promises of resale and exit from their timeshares for a fee.
• Sham Business Opportunities – Convince victims to invest in lucrative business opportunities or fake investments.

Here are some tips on how to avoid falling victim to a financial scam:

• Don’t share personal or financial information with anyone you don’t know.
• If the person asking the information claims to be a relative, a friend, someone you know, or a representative of a financial institution or government agency, do not respond right away. Instead, contact the person/entity independently or ask a trusted family member or friend for help.
• Don’t pay a fee for a prize or lottery winning.
• Don’t click on pop-up ads, messages, or virus warnings.
• Delete phishing emails, do not respond to texts from unknown numbers, and ignore harassing phone calls.
• Don’t send gift cards, checks, money orders, wire money, or give your bank account information to a stranger or someone who claims to be a relative without verifying the person’s identity.
• Don’t fall for a high-pressure sales pitch or lucrative business deals.
• If you suspect fraud, take the time to talk to a trusted friend or family member.
• It’s not rude to say, “NO.”
• Keep in mind that if you send money once, you’ll be a target for life.
• A good rule of thumb is, if it’s too good to be true, it’s likely a scam.
• And remember, there is no shame in falling victim to an online scammer. These are professional criminals that use tried-and-true tactics to perpetrate fraud.

The U.S. Attorney’s Office urges the public to report suspected elder fraud by calling the Justice Department’s Elder Fraud Hotline at 1-833-FRAUD-11 (833-372-8311) or visiting the Elder Justice Initiative at Justice.gov/elderjustice for additional information and resources.